PUBLIC LAW 110–227—MAY 7, 2008 

ENSURING CONTINUED ACCESS TO STUDENT 

LOANS ACT OF 2008 


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122 STAT. 740 PUBLIC LAW 110–227—MAY 7, 2008 

Public Law 110–227 

110th Congress 

An Act 

To ensure continued availability of access to the Federal student loan program 

for students and families. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

This title may be cited as the ‘‘Ensuring Continued Access 

to Student Loans Act of 2008’’. 

SEC. 2. INCREASING UNSUBSIDIZED STAFFORD LOAN LIMITS FOR 

UNDERGRADUATE STUDENTS. 

(a) AMENDMENTS.—Subsection (d) of section 428H of the Higher 

Education Act of 1965 (20 U.S.C. 1078–8(d)) is amended to read 

as follows: 

‘‘(d) LOAN LIMITS.— 

‘‘(1) IN GENERAL.—Except as provided in paragraphs (2), 

(3), and (4), the annual and aggregate limits for loans under 

this section shall be the same as those established under section 

428(b)(1), less any amount received by such student pursuant 

to the subsidized loan program established under section 428. 

‘‘(2) LIMITS FOR GRADUATE AND PROFESSIONAL STUDENTS.— 

‘‘(A) ANNUAL LIMITS.—The maximum annual amount 

of loans under this section a graduate or professional student may borrow in any academic year (as defined in 

section 481(a)(2)) or its equivalent shall be the amount 

determined under paragraph (1), plus— 

‘‘(i) in the case of such a student who is a graduate 

or professional student attending an eligible institution, $12,000; and 

‘‘(ii) in the case of a graduate student enrolled 

in coursework specified in sections 484(b)(3)(B) and 

484(b)(4)(B), $7,000; 

except in cases where the Secretary determines that a 

higher amount is warranted in order to carry out the 

purpose of this part with respect to students engaged in 

specialized training requiring exceptionally high costs of 

education, but the annual insurable limit per student shall 

not be deemed to be exceeded by a line of credit under 

which actual payments by the lender to the borrower will 

not be made in any years in excess of the annual limit. 

‘‘(B) AGGREGATE LIMIT.—The maximum aggregate 

amount of loans under this section a student described 

in subparagraph (A) may borrow shall be the amount 

described in paragraph (1), adjusted to reflect the increased 

20 USC 1001 

note. 

Ensuring 

Continued Access 

to Student Loans 

Act of 2008. 

May 7, 2008 

[H.R. 5715] 


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PUBLIC LAW 110–227—MAY 7, 2008 122 STAT. 741 

annual limits described in subparagraph (A), as prescribed 

by the Secretary by regulation. 

‘‘(3) LIMITS FOR UNDERGRADUATE DEPENDENT STUDENTS.— 

‘‘(A) ANNUAL LIMITS.—The maximum annual amount 

of loans under this section an undergraduate dependent 

student (except an undergraduate dependent student whose 

parents are unable to borrow under section 428B or the 

Federal Direct PLUS Loan Program) may borrow in any 

academic year (as defined in section 481(a)(2)) or its equivalent shall be the sum of the amount determined under 

paragraph (1), plus $2,000. 

‘‘(B) AGGREGATE LIMITS.—The maximum aggregate 

amount of loans under this section a student described 

in subparagraph (A) may borrow shall be $31,000. 

‘‘(4) LIMITS FOR UNDERGRADUATE INDEPENDENT STUDENTS.— 

‘‘(A) ANNUAL LIMITS.—The maximum annual amount 

of loans under this section an undergraduate independent 

student, or an undergraduate dependent student whose 

parents are unable to borrow under section 428B or the 

Federal Direct PLUS Loan Program, may borrow in any 

academic year (as defined in section 481(a)(2)) or its equivalent shall be the sum of the amount determined under 

paragraph (1), plus— 

‘‘(i) in the case of such a student attending an 

eligible institution who has not completed such student’s first 2 years of undergraduate study— 

‘‘(I) $6,000, if such student is enrolled in a 

program whose length is at least one academic 

year in length; or 

‘‘(II) if such student is enrolled in a program 

of undergraduate education which is less than one 

academic year, the maximum annual loan amount 

that such student may receive may not exceed 

the amount that bears the same ratio to the 

amount specified in subclause (I) as the length 

of such program measured in semester, trimester, 

quarter, or clock hours bears to one academic year; 

‘‘(ii) in the case of such a student at an eligible 

institution who has successfully completed such first 

and second years but has not successfully completed 

the remainder of a program of undergraduate education— 

‘‘(I) $7,000; or 

‘‘(II) if such student is enrolled in a program 

of undergraduate education, the remainder of 

which is less than one academic year, the maximum annual loan amount that such student may 

receive may not exceed the amount that bears 

the same ratio to the amount specified in subclause 

(I) as such remainder measured in semester, trimester, quarter, or clock hours bears to one academic year; and 

‘‘(iii) in the case of such a student enrolled in 

coursework specified in sections 484(b)(3)(B) and 

484(b)(4)(B), $6,000 for coursework necessary for 


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122 STAT. 742 PUBLIC LAW 110–227—MAY 7, 2008 

enrollment in an undergraduate degree or certificate 

program. 

‘‘(B) AGGREGATE LIMITS.—The maximum aggregate 

amount of loans under this section a student described 

in subparagraph (A) may borrow shall be $57,500. 

‘‘(5) CAPITALIZED INTEREST.—Interest capitalized shall not 

be deemed to exceed a maximum aggregate amount determined 

under subparagraph (B) of paragraph (2), (3), or (4).’’. 

(b) STUDENT ELIGIBILITY.—Loan limit increases authorized by 

the amendments made by this section shall be available only to 

students who meet the requirements of section 484(a) of the Higher 

Education Act of 1965 (20 U.S.C. 1091(a)). 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall be effective for loans first disbursed on or after July 1, 2008. 

SEC. 3. GRACE PERIOD FOR PARENT PLUS LOANS. 

(a) AMENDMENT.—Section 428B(d) of the Higher Education Act 

of 1965 (20 U.S.C. 1078–2(d)) is amended by amending paragraphs 

(1) and (2) to read as follows: 

‘‘(1) COMMENCEMENT OF REPAYMENT.—Repayment of principal on loans made under this section shall— 

‘‘(A) commence not later than— 

‘‘(i) 60 days after the date such loan is disbursed 

by the lender, except as provided in clause (ii); and 

‘‘(ii) if agreed upon by a parent borrower, the day 

after 6 months after the date the student for whom 

the loan is borrowed ceases to carry at least onehalf the normal full-time academic workload (as determined by the institution); and 

‘‘(B) be subject to deferral during any period during 

which the graduate or professional student or the parent 

meets the conditions required for a deferral under section 

427(a)(2)(C) or 428(b)(1)(M). 

‘‘(2) CAPITALIZATION OF INTEREST.— 

‘‘(A) IN GENERAL.—Interest on loans made under this 

section— 

‘‘(i) which accrues prior to the beginning of repayment under paragraph (1)(A)(i), shall be added to the 

principal amount of the loan; and 

‘‘(ii) which accrues prior to the beginning of repayment under paragraph (1)(A)(ii) or during a period 

in which payments of principal are deferred pursuant 

to paragraph (1)(B) shall, if agreed upon by the borrower and the lender— 

‘‘(I) be paid monthly or quarterly; or 

‘‘(II) be added to the principal amount of the 

loan not more frequently than quarterly by the 

lender. 

‘‘(B) INSURABLE LIMITS.—Capitalization of interest 

under this paragraph shall not be deemed to exceed the 

annual insurable limit on account of the borrower.’’. 

(b) CONFORMING AMENDMENT.—Section 428(b)(7)(C) of such Act 

(20 U.S.C. 1078(b)(7)(C)) is amended by striking ‘‘, 428B,’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall be effective for loans first disbursed on or after July 1, 2008. 

20 USC 1078 

note. 

20 USC 1078–8 

note. 

20 USC 1078–8 

note. 


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PUBLIC LAW 110–227—MAY 7, 2008 122 STAT. 743 

SEC. 4. SPECIAL RULES FOR PLUS LOANS. 

Section 428B(a)(3) of the Higher Education Act of 1965 (20 

U.S.C. 1078–2(a)(3)) is amended to read as follows: 

‘‘(3) SPECIAL RULES.— 

‘‘(A) PARENT BORROWERS.—Whenever necessary to 

carry out the provisions of this section, the terms ‘student’ 

and ‘borrower’ as used in this part shall include a parent 

borrower under this section. 

‘‘(B)(i) EXTENUATING CIRCUMSTANCES.—An eligible 

lender may determine that extenuating circumstances exist 

under the regulations promulgated pursuant to paragraph 

(1)(A) if, during the period beginning January 1, 2007, 

and ending December 31, 2009, an applicant for a loan 

under this section— 

‘‘(I) is or has been delinquent for 180 days or 

fewer on mortgage loan payments or on medical bill 

payments during such period; and 

‘‘(II) is not and has not been more than 89 days 

delinquent on the repayment of any other debt during 

such period. 

‘‘(ii) DEFINITION OF MORTGAGE LOAN.—In this subparagraph, the term ‘mortgage loan’ means an extension of 

credit to a borrower that is secured by the primary residence of the borrower. 

‘‘(iii) RULE OF CONSTRUCTION.—Nothing in this 

subparagraph shall be construed to limit an eligible lender’s 

authority under the regulations promulgated pursuant to 

paragraph (1)(A) to determine that extenuating circumstances exist.’’. 

SEC. 5. LENDER-OF-LAST-RESORT. 

(a) IN GENERAL.—Section 428(j) of the Higher Education Act 

of 1965 (20 U.S.C. 1078(j)) is amended— 

(1) in the first sentence of paragraph (1), by striking ‘‘students eligible to receive interest benefits paid on their behalf 

under subsection (a) of this section who are otherwise unable 

to obtain loans under this part’’ and inserting ‘‘eligible students 

and parents who are otherwise unable to obtain loans under 

this part (except for consolidation loans under section 428C) 

or who attend an institution of higher education in the State 

that is designated under paragraph (4)’’; 

(1) in paragraph (1), by inserting after the second sentence 

the following: ‘‘No loan under section 428, 428B, or 428H that 

is made pursuant to this subsection shall be made with interest 

rates, origination or default fees, or other terms and conditions 

that are more favorable to the borrower than the maximum 

interest rates, origination or default fees, or other terms and 

conditions applicable to that type of loan under this part.’’; 

(2) in paragraph (2)(B), by inserting ‘‘, in the case of students and parents applying for loans under this subsection 

because of an inability to otherwise obtain loans under this 

part (except for consolidation loans under section 428C),’’ after 

‘‘lender, nor’’; 

(3) in paragraph (3)(C)— 

(A) in the first sentence, by inserting ‘‘or designates 

an institution of higher education for participation in the 


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122 STAT. 744 PUBLIC LAW 110–227—MAY 7, 2008 

program under this subsection under paragraph (4)’’ after 

‘‘under this part’’; and 

(B) in the third sentence, by inserting ‘‘or to eligible 

borrowers who attend an institution in the State that is 

designated under paragraph (4)’’ after ‘‘problems’’; and 

(4) by adding at the end the following: 

‘‘(4) INSTITUTION-WIDE STUDENT QUALIFICATION.—Upon the 

request of an institution of higher education and pursuant 

to standards developed by the Secretary, the Secretary shall 

designate such institution for participation in the lender-oflast-resort program under this paragraph. If the Secretary designates an institution under this paragraph, the guaranty 

agency designated for the State in which the institution is 

located shall make loans, in the same manner as such loans 

are made under paragraph (1), to students and parent borrowers of the designated institution, regardless of whether the 

students or parent borrowers are otherwise unable to obtain 

loans under this part (other than a consolidation loan under 

section 428C). 

‘‘(5) STANDARDS DEVELOPED BY THE SECRETARY.—In developing standards with respect to paragraph (4), the Secretary 

may require— 

‘‘(A) an institution of higher education to demonstrate 

that, despite due diligence on the part of the institution, 

the institution has been unable to secure the commitment 

of eligible lenders willing to make loans under this part 

to a significant number of students attending the institution; 

‘‘(B) that, prior to making a request under such paragraph for designation for participation in the lender-oflast-resort program, an institution of higher education shall 

demonstrate that the institution has met a minimum 

threshold, as determined by the Secretary, for the number 

or percentage of students at such institution who have 

received rejections from eligible lenders for loans under 

this part; and 

‘‘(C) any other standards and guidelines the Secretary 

determines to be appropriate. 

‘‘(6) EXPIRATION OF AUTHORITY.—The Secretary’s authority 

under paragraph (4) to designate institutions of higher education for participation in the program under this subsection 

shall expire on June 30, 2009. 

‘‘(7) EXPIRATION OF DESIGNATION.—The eligibility of an 

institution of higher education, or borrowers from such institution, to participate in the program under this subsection pursuant to a designation of the institution by the Secretary under 

paragraph (4) shall expire on June 30, 2009. After such date, 

borrowers from an institution designated under paragraph (4) 

shall be eligible to participate in the program under this subsection as such program existed on the day before the date 

of enactment of the Ensuring Continued Access to Student 

Loans Act of 2008. 

‘‘(8) PROHIBITION ON INDUCEMENTS AND MARKETING.—Each 

guaranty agency or eligible lender that serves as a lenderof-last-resort under this subsection— 

Designation. 


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‘‘(A) shall be subject to the prohibitions on inducements 

contained in subsection (b)(3) and the requirements of section 435(d)(5); and 

‘‘(B) shall not advertise, market, or otherwise promote 

loans under this subsection, except that nothing in this 

paragraph shall prohibit a guaranty agency from fulfilling 

its responsibilities under paragraph (2)(C). 

‘‘(9) DISSEMINATION AND REPORTING.— 

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

‘‘(i) broadly disseminate information regarding the 

availability of loans made under this subsection; 

‘‘(ii) during the period beginning July 1, 2008 and 

ending June 30, 2010, provide to the Committee on 

Health, Education, Labor, and Pensions of the Senate 

and the Committee on Education and Labor of the 

House of Representatives and make available to the 

public— 

‘‘(I) copies of any new or revised plans or agreements made by guaranty agencies or the Department related to the authorities under this subsection; 

‘‘(II) quarterly reports on— 

‘‘(aa) the number and amounts of loans 

originated or approved pursuant to this subsection by each guaranty agency and eligible 

lender; and 

‘‘(bb) any related payments by the Department, a guaranty agency, or an eligible lender; 

and 

‘‘(III) a budget estimate of the costs to the 

Federal Government (including subsidy and 

administrative costs) for each 100 dollars loaned, 

of loans made pursuant to this subsection between 

the date of enactment of the Ensuring Continued 

Access to Student Loans Act of 2008 and June 

30, 2009, disaggregated by type of loan, compared 

to such costs to the Federal Government during 

such time period of comparable loans under this 

part and part D, disaggregated by part and by 

type of loan; and 

‘‘(iii) beginning July 1, 2010, provide to the Committee on Health, Education, Labor, and Pensions of 

the Senate and the Committee on Education and Labor 

of the House of Representatives and make available 

to the public— 

‘‘(I) copies of any new or revised plans or agreements made by guaranty agencies or the Department related to the authorities under this subsection; and 

‘‘(II) annual reports on— 

‘‘(aa) the number and amounts of loans 

originated or approved pursuant to this subsection by each guaranty agency and eligible 

lender; and 

‘‘(bb) any related payments by the Department, a guaranty agency, or an eligible lender. 

Effective date. 

Public 

information. 


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‘‘(B) SEPARATE REPORTING.—The information required 

to be reported under subparagraph (A)(ii)(II) shall be 

reported separately for loans originated or approved pursuant to paragraph (4), or payments related to such loans, 

for the time period in which the Secretary is authorized 

to make designations under paragraph (4).’’. 

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

(a) shall take effect on the date of enactment of this Act. 

(c) REVIEW OF INDUCEMENTS LIMITATIONS.—Within 90 days 

after the date of enactment of this Act, the Secretary of Education 

shall review, and as necessary revise, the Department of Education’s 

regulations concerning prohibited guaranty agency inducements to 

eligible lenders (34 CFR 682.401(e)) to ensure that such agencies 

do not engage in improper inducements in the expansion of operations of the lender-of-last-resort program as authorized by the 

amendments made by this section. The Secretary shall submit 

a report on the review and revision required by this subsection 

to the Committee on Education and Labor of the House of Representatives and the Committee on Health, Education, Labor, and 

Pensions of the Senate within 180 days after such date of enactment. 

SEC. 6. MANDATORY ADVANCES. 

(a) IN GENERAL.—Section 421(b) of the Higher Education Act 

of 1965 (20 U.S.C. 1071(b)) is amended— 

(1) in paragraph (4), by striking ‘‘programs, and’’ and 

inserting ‘‘programs,’’; 

(2) in paragraph (5), by striking ‘‘agencies.’’ and inserting 

‘‘agencies, and’’; and 

(3) by inserting before the matter following paragraph (5) 

the following: 

‘‘(6) there is authorized to be appropriated, and there are 

appropriated, out of any money in the Treasury not otherwise 

appropriated, such sums as may be necessary for the purpose 

of carrying out section 422(c)(7).’’. 

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

(a) shall take effect on the date of enactment of this Act. 

SEC. 7. TEMPORARY AUTHORITY TO PURCHASE STUDENT LOANS. 

(a) SPENDING AUTHORITY.— 

(1) AUTHORITY GRANTED.—The first sentence of section 

451(a) of the Higher Education Act of 1965 (20 U.S.C. 1087a(a)) 

is amended— 

(A) by inserting ‘‘(1)’’ after ‘‘as may be necessary’’; 

and 

(B) by inserting before the period at the end of such 

sentence the following: ‘‘; and (2) for purchasing loans 

under section 459A’’. 

(2) CONFORMING AMENDMENT.—Section 451(a) of such Act 

(20 U.S.C. 1087a(a)) is further amended by striking ‘‘Such 

loans shall’’ and inserting ‘‘Loans made under this part shall’’. 

(b) TEMPORARY AUTHORITY.—Part D of title IV of the Higher 

Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by 

inserting after section 459 the following new section: 

‘‘SEC. 459A. TEMPORARY AUTHORITY TO PURCHASE STUDENT LOANS. 

‘‘(a) AUTHORITY TO PURCHASE.— 

20 USC 1087i–1. 

20 USC 1071 

note. 

Appropriation 

authorization. 

Reports. 

Deadlines. 

Regulations. 

20 USC 1078 

note. 

20 USC 1078 

note. 


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‘‘(1) AUTHORITY; DETERMINATION REQUIRED.—Upon a determination by the Secretary that there is an inadequate availability of loan capital to meet the demand for loans under 

sections 428, 428B, or 428H, whether as a result of inadequate 

liquidity for such loans or for other reasons, the Secretary, 

in consultation with the Secretary of the Treasury, is authorized 

to purchase, or enter into forward commitments to purchase, 

from any eligible lender, as defined by section 435(d)(1), loans 

first disbursed under sections 428, 428B, or 428H on or after 

October 1, 2003, and before July 1, 2009, on such terms as 

the Secretary, the Secretary of the Treasury, and the Director 

of the Office of Management and Budget jointly determine 

are in the best interest of the United States, except that any 

purchase under this section shall not result in any net cost 

to the Federal Government (including the cost of servicing 

the loans purchased), as determined jointly by the Secretary, 

the Secretary of the Treasury, and the Director of the Office 

of Management and Budget. 

‘‘(2) FEDERAL REGISTER NOTICE.—The Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget, shall jointly publish a notice in the Federal 

Register prior to any purchase of loans under this section 

that— 

‘‘(A) establishes the terms and conditions governing 

the purchases authorized by paragraph (1); 

‘‘(B) includes an outline of the methodology and factors 

that the Secretary, the Secretary of the Treasury, and 

the Director of the Office of Management and Budget, 

will jointly consider in evaluating the price at which to 

purchase loans made under section 428, 428B, or 428H; 

and 

‘‘(C) describes how the use of such methodology and 

consideration of such factors used to determine purchase 

price will ensure that loan purchases do not result in 

any net cost to the Federal Government (including the 

cost of servicing the loans purchased). 

‘‘(b) PROCEEDS.—The Secretary shall require, as a condition 

of any purchase under subsection (a), that the funds paid by the 

Secretary to any eligible lender under this section shall be used: 

(1) to ensure continued participation of such lender in the Federal 

student loan programs authorized under part B of this title; and 

(2) to originate new Federal loans to students, as authorized under 

part B of this title. 

‘‘(c) MAINTAINING SERVICING ARRANGEMENTS.—The Secretary 

may, if agreed upon by an eligible lender selling loans under this 

section, contract with such lender for the servicing of the loans 

purchased, provided that— 

‘‘(1) the cost of such servicing arrangement does not exceed 

the cost the Federal Government would otherwise incur for 

the servicing of loans purchased, as determined under subsection (a); and 

‘‘(2) such servicing arrangement is in the best interest 

of the borrowers whose loans are purchased. 

‘‘(d) EXPIRATION OF AUTHORITY.—The Secretary’s authority to 

purchase loans under this section shall expire on July 1, 2009.’’. 

(c) CONTRACTING AUTHORITY.—Section 456(b) of the Higher 

Education Act of 1965 (20 U.S.C. 1087f(b)) is amended by inserting 


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‘‘or purchased’’ after ‘‘loans made’’ each place it appears in paragraphs (2) and (3). 

SEC. 8. SENSE OF CONGRESS. 

It is a sense of Congress that, at a time when our economy 

is fragile and higher education and retraining opportunities are 

more important than ever— 

(1) the Federal financial institutions, such as the Federal 

Financing Bank and Federal Reserve, and federally chartered 

private entities such as the Federal Home Loan Banks and 

others, should consider, in consultation with the Secretary of 

Treasury and the Secretary of Education, using available 

authorities in a timely manner, if needed, to assist in ensuring 

that students and families can access Federal student loans 

for academic year 2008–2009, and if needed in the subsequent 

academic year, in a manner that results in no increased costs 

to taxpayers; and 

(2) any action taken as a result of such consideration 

should in no way limit or delay the Secretary of Education’s 

authority to operate the lender-of-last-resort provisions of section 428(j) of the Higher Education Act of 1965 (as amended 

by this Act), nor the authority to purchase Federal Family 

Education Loan Program loans, as authorized by section 459A 

of such Act (as added by this Act). 

SEC. 9. GAO STUDY ON IMPACT OF INCREASED LOAN LIMITS. 

(a) STUDY REQUIRED.—The Comptroller General shall conduct 

a study to evaluate the impact of the increase in Federal loan 

limits provided for in section 2 of this Act and section 8005 of 

the Deficit Reduction Act of 2005 with respect to the impact on— 

(1) tuition, fees, and room and board at institutions of 

higher education; and 

(2) private loan borrowing by students and parents for 

attendance at institutions of higher education. 

(b) STUDY COMPONENTS.—The study required under subsection 

(a) shall be conducted for each major sector of institutions of higher 

education over a 5-year time period. The report shall specifically 

analyze the following: 

(1) Whether, on average, tuition, fees, and room and board 

increase, decrease, or remain unchanged in each such sector 

after the increases in Federal loan limits take effect. 

(2) Whether the amount of private educational loans taken 

out by students (and their parents) at institutions in each 

such sector to pay tuition, fees, and room and board increase, 

decrease, or remain unchanged. 

(c) REPORT.—Not later than one year after the date of enactment of this Act, the Comptroller General shall provide an interim 

report to the Committee on Education and Labor of the House 

of Representatives and the Committee on Health, Education, Labor, 

and Pensions of the Senate including the initial results of the 

study conducted under this section. The Comptroller General shall 

follow up with such Committees after the third year and the fifth 

year after such date of enactment. 

SEC. 10. ACADEMIC COMPETITIVENESS GRANTS. 

(a) AMENDMENTS.—Section 401A of the Higher Education Act 

of 1965 (20 U.S.C. 1070a–1) is amended— 

(1) by striking subsection (a) and inserting the following: 


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‘‘(a) ACADEMIC COMPETITIVENESS GRANT PROGRAM AUTHORIZED.—The Secretary shall award grants, in the amounts specified 

in subsection (d)(1), to eligible students to assist the eligible students in paying their college education expenses.’’; 

(2) in subsection (b)— 

(A) by striking ‘‘academic year’’ each place it appears 

and inserting ‘‘year’’; and 

(B) in paragraph (2), by striking ‘‘third or fourth’’ and 

inserting ‘‘third, fourth, or fifth’’; 

(3) in subsection (c)— 

(A) in the matter preceding paragraph (1)— 

(i) by striking ‘‘full–time’’; 

(ii) by striking ‘‘academic’’ and inserting ‘‘award’’; 

and 

(iii) by striking ‘‘is made’’ and inserting ‘‘is made 

for a grant under this section’’; 

(B) by striking paragraphs (1) and (2) and inserting 

the following: 

‘‘(1) is eligible for a Federal Pell Grant; 

‘‘(2) is enrolled or accepted for enrollment in an institution 

of higher education on not less than a half-time basis; and’’; 

and 

(C) in paragraph (3)— 

(i) by striking ‘‘academic’’ each place the term 

appears; 

(ii) in subparagraph (A)— 

(I) by striking the matter preceding clause 

(i) and inserting the following: 

‘‘(A) the first year of a program of undergraduate 

education at a two- or four-year degree-granting institution 

of higher education (including a program of not less than 

one year for which the institution awards a 

certificate)—’’; 

(II) by striking clause (i) and inserting the 

following: 

‘‘(i) has successfully completed, after January 1, 

2006, a rigorous secondary school program of study 

that prepares students for college and is recognized 

as such by the State official designated for such recognition, or with respect to any private or home school, 

the school official designated for such recognition for 

such school, consistent with State law, which recognized program shall be reported to the Secretary; and’’; 

and 

(III) in clause (ii), by inserting ‘‘, except as 

part of a secondary school program of study’’ before 

the semicolon; 

(iii) in subparagraph (B)— 

(I) in the matter preceding clause (i), by 

striking ‘‘year of’’ and all that follows through 

‘‘higher education’’ and inserting ‘‘year of a program of undergraduate education at a two- or fouryear degree-granting institution of higher education (including a program of not less than two 

years for which the institution awards a certificate)’’; and 


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(II) in clause (ii), by striking ‘‘or’’ after the 

semicolon at the end; 

(iv) in subparagraph (C)— 

(I) in the matter preceding subclause (I) of 

clause (i), by inserting ‘‘certified by the institution 

to be’’ after ‘‘is’’; 

(II) by striking clause (i)(II) and inserting the 

following: 

‘‘(II) a critical foreign language; and’’; and 

(III) in clause (ii), by striking the period at 

the end and inserting a semicolon; and 

(v) by adding at the end the following: 

‘‘(D) the third or fourth year of a program of undergraduate education at an institution of higher education 

(as defined in section 101(a)), is attending an institution 

that demonstrates, to the satisfaction of the Secretary, 

that the institution— 

‘‘(i) offers a single liberal arts curriculum leading 

to a baccalaureate degree, under which students are 

not permitted by the institution to declare a major 

in a particular subject area, and the student— 

‘‘(I)(aa) studies, in such years, a subject 

described in subparagraph (C)(i) that is at least 

equal to the requirements for an academic major 

at an institution of higher education that offers 

a baccalaureate degree in such subject, as certified 

by an appropriate official from the institution; and 

‘‘(bb) has obtained a cumulative grade point 

average of at least 3.0 (or the equivalent as determined under regulations prescribed by the Secretary) in the relevant coursework; or 

‘‘(II) is required, as part of the student’s degree 

program, to undertake a rigorous course of study 

in mathematics, biology, chemistry, and physics, 

which consists of at least— 

‘‘(aa) 4 years of study in mathematics; 

and 

‘‘(bb) 3 years of study in the sciences, with 

a laboratory component in each of those years; 

and 

‘‘(ii) offered such curriculum prior to February 8, 

2006; or 

‘‘(E) the fifth year of a program of undergraduate education that requires 5 full years of coursework, as certified 

by the appropriate official of the degree-granting institution 

of higher education, for which a baccalaureate degree is 

awarded by a degree-granting institution of higher education— 

‘‘(i) is certified by the institution of higher education to be pursuing a major in— 

‘‘(I) the physical, life, or computer sciences, 

mathematics, technology, or engineering (as determined by the Secretary pursuant to regulations); 

or 

‘‘(II) a critical foreign language; and 

‘‘(ii) has obtained a cumulative grade point average 

of at least 3.0 (or the equivalent, as determined under 


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PUBLIC LAW 110–227—MAY 7, 2008 122 STAT. 751 

regulations prescribed by the Secretary) in the 

coursework required for the major described in clause 

(i).’’; 

(4) in subsection (d)— 

(A) in paragraph (1)— 

(i) in subparagraph (A)— 

(I) by striking ‘‘The’’ and inserting ‘‘IN GEN- ERAL.—The’’; 

(II) in clause (ii), by striking ‘‘or’’ after the 

semicolon at the end; 

(III) in clause (iii), by striking ‘‘subsection 

(c)(3)(C).’’ and inserting ‘‘subparagraph (C) or (D) 

of subsection (c)(3), for each of the two years 

described in such subparagraphs; or’’; and 

(IV) by adding at the end the following: ‘‘(iv) $4,000 for an eligible student under subsection (c)(3)(E).’’; and 

(ii) in subparagraph (B)— 

(I) by striking ‘‘Notwithstanding’’ and inserting 

‘‘LIMITATION; RATABLE REDUCTION.—Notwithstanding’’; 

(II) by redesignating clauses (i), (ii), and (iii), 

as clauses (ii), (iii), and (iv), respectively; and 

(III) by inserting before clause (ii), as redesignated under subclause (II), the following: 

‘‘(i) in any case in which a student attends an 

institution of higher education on less than a fulltime basis, the amount of the grant that such student 

may receive shall be reduced in the same manner 

as a Federal Pell Grant is reduced under section 

401(b)(2)(B);’’; 

(B) by striking paragraph (2) and inserting the following: 

‘‘(2) LIMITATIONS.— 

‘‘(A) NO GRANTS FOR PREVIOUS CREDIT.—The Secretary 

may not award a grant under this section to any student 

for any year of a program of undergraduate education 

for which the student received credit before the date of 

enactment of the Higher Education Reconciliation Act of 

2005. 

‘‘(B) NUMBER OF GRANTS.—The Secretary may not 

award more than one grant to a student described in subsection (c)(3) for each year of study described in such subsection.’’; and 

(C) by adding at the end the following: and 

‘‘(3) CALCULATION OF GRANT PAYMENTS.—An institution of 

higher education shall make payments of a grant awarded 

under this section in the same manner, using the same payment 

periods, as such institution makes payments for Federal Pell 

Grants under section 401.’’; 

(5) by striking subsection (e)(2) and inserting the following: 

‘‘(2) AVAILABILITY OF FUNDS.—Funds made available under 

paragraph (1) for a fiscal year shall remain available for the 

succeeding fiscal year.’’; 

(6) in subsection (f)— 

(A) by striking ‘‘at least one’’ and inserting ‘‘not less 

than one’’; and 


jbridges on POFP91QD1 with PUBLIC LAWS
122 STAT. 752 PUBLIC LAW 110–227—MAY 7, 2008 

LEGISLATIVE HISTORY—H.R. 5715: 

HOUSE REPORTS: No. 110–583 (Comm. on Education and Labor). 

CONGRESSIONAL RECORD, Vol. 154 (2008): 

Apr. 16, 17, considered and passed House. 

Apr. 30, considered and passed Senate, amended. 

May 1, House concurred in Senate amendments. 

Æ 

(B) by striking ‘‘subsection (c)(3)(A) and (B)’’ and 

inserting ‘‘subparagraphs (A) and (B) of subsection (c)(3)’’; 

and 

(7) in subsection (g), by striking ‘‘academic’’ and inserting 

‘‘award’’. 

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

(a) shall take effect on January 1, 2009. 

SEC. 11. INAPPLICABILITY OF MASTER CALENDAR AND NEGOTIATED 

RULEMAKING REQUIREMENTS. 

Sections 482 and 492 of the Higher Education Act of 1965 

(20 U.S.C. 1089, 1098a) shall not apply to amendments made by 

sections 2 through 9 of this Act, or to any regulations promulgated 

under such amendments. 

Approved May 7, 2008. 

20 USC 1089 

note. 

20 USC 1070a–1 

note. 


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