II 

115TH CONGRESS 

1ST SESSION S. 806 

To amend the Higher Education Act to ensure College for All. 

IN THE SENATE OF THE UNITED STATES 

APRIL 3, 2017 

Mr. SANDERS (for himself, Ms. HARRIS, Ms. WARREN, Mr. BLUMENTHAL, 

Mr. MURPHY, and Mrs. GILLIBRAND) introduced the following bill; which 

was read twice and referred to the Committee on Health, Education, 

Labor, and Pensions 

A BILL 

To amend the Higher Education Act to ensure College for 

All. 

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. 

4 This Act may be cited as the ‘‘College for All Act 

5 of 2017’’. 


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1 TITLE I—FEDERAL-STATE PART2 NERSHIP TO ELIMINATE TUI3 TION AND REQUIRED FEES 

4 SEC. 101. FEDERAL-STATE PARTNERSHIP TO ELIMINATE 

5 TUITION AND REQUIRED FEES. 

6 The Higher Education Act of 1965 (20 U.S.C. 1001 

7 et seq.) is amended by adding at the end the following: 

8 ‘‘TITLE IX—FEDERAL-STATE 

9 PARTNERSHIP TO ELIMINATE 

10 TUITION AND REQUIRED 

11 FEES 

12 ‘‘SEC. 901. GRANT PROGRAM TO ELIMINATE TUITION AND 

13 REQUIRED FEES AT PUBLIC INSTITUTIONS 

14 OF HIGHER EDUCATION AND TRIBAL COL15 LEGES AND UNIVERSITIES. 

16 ‘‘(a) DEFINITIONS.—In this section: 

17 ‘‘(1) AWARD YEAR.—The term ‘award year’ has 

18 the meaning given the term in section 481(a). 

19 ‘‘(2) COMMUNITY COLLEGE.—The term ‘com20 munity college’ means— 

21 ‘‘(A) a public institution of higher edu22 cation at which the credential that is predomi23 nantly awarded to students is at the sub-bacca24 laureate level; or 


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1 ‘‘(B) a public postsecondary vocational in2 stitution, as defined under section 102(c). 

3 ‘‘(3) COST OF ATTENDANCE.—The term ‘cost of 

4 attendance’ has the meaning given the term in sec5 tion 472. 

6 ‘‘(4) DUAL OR CONCURRENT ENROLLMENT

7 PROGRAM.—The term ‘dual or concurrent enrollment 

8 program’ has the meaning given the term in section 

9 8101 of the Elementary and Secondary Education 

10 Act of 1965. 

11 ‘‘(5) EARLY COLLEGE HIGH SCHOOL.—The 

12 term ‘early college high school’ has the meaning 

13 given the term in section 8101 of the Elementary 

14 and Secondary Education Act of 1965. 

15 ‘‘(6) ELIGIBLE INDIAN ENTITY.—The term ‘eli16 gible Indian entity’ means the entity responsible for 

17 the governance, operation, or control of a Tribal Col18 lege or University. 

19 ‘‘(7) ELIGIBLE STUDENT.—The term ‘eligible 

20 student’ means an individual, regardless of age, who 

21 has not obtained a baccalaureate degree or higher 

22 degree and— 

23 ‘‘(A) is enrolled, or plans to enroll, in a 

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1 dividual is a resident or in a 2-year Tribal Col2 lege or University; or 

3 ‘‘(B) is a working class or middle class stu4 dent, as described in subsection (d)(3), who is 

5 enrolled or plans to enroll in a 4-year public in6 stitution of higher education in the State in 

7 which the individual is a resident or in a 4-year 

8 Tribal College or University. 

9 ‘‘(8) FULL-TIME EQUIVALENT ELIGIBLE STU10 DENTS.—The term ‘full-time equivalent eligible stu11 dents’, when used with respect to an institution of 

12 higher education, has the meaning given the term 

13 ‘full-time equivalent students’, except that the cal14 culation shall be made based on the number of eligi15 ble students enrolled at such institution. 

16 ‘‘(9) FULL-TIME EQUIVALENT STUDENTS.—The 

17 term ‘full-time equivalent students’ means the sum 

18 of the number of students enrolled full time at an 

19 institution, plus the full-time equivalent of the num20 ber of students enrolled part time (determined on 

21 the basis of the quotient of the sum of the credit 

22 hours of all part-time students divided by 12) at 

23 such institution. 


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1 ‘‘(10) INSTITUTION OF HIGHER EDUCATION.— 

2 The term ‘institution of higher education’ has the 

3 meaning given the term in section 101. 

4 ‘‘(11) PUBLIC 4-YEAR INSTITUTION OF HIGHER

5 EDUCATION.—The term ‘public 4-year institution of 

6 higher education’ means a public institution of high7 er education that is not a community college. 

8 ‘‘(12) TRIBAL COLLEGE OR UNIVERSITY.—The 

9 term ‘Tribal College or University’ has the meaning 

10 given the term in section 316(b)(3). 

11 ‘‘(13) 2-YEAR TRIBAL COLLEGE OR UNIVER12 SITY.—The term ‘2-year Tribal College or Univer13 sity’ means a Tribal College or University at which 

14 the credential that is predominantly awarded to stu15 dents is at the sub-baccalaureate level. 

16 ‘‘(14) 4-YEAR TRIBAL COLLEGE OR UNIVER17 SITY.—The term ‘4-year Tribal College or Univer18 sity’ means a Tribal College or University that is not 

19 a 2-year Tribal College or University. 

20 ‘‘(b) PROGRAM AUTHORIZED.— 

21 ‘‘(1) GRANTS AUTHORIZED.—From amounts 

22 appropriated under subsection (g), the Secretary 

23 shall award grants, from allotments under sub24 section (c), to States and eligible Indian entities havVerDate Sep 11 2014 02:07 Apr 08, 2017 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S806.IS S806

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1 ing applications approved under subsection (e), to 

2 enable the States and eligible Indian entities— 

3 ‘‘(A) to eliminate tuition and required fees 

4 for all eligible students at community colleges 

5 in the State or at 2-year Tribal Colleges and 

6 Universities of the eligible Indian entity; and 

7 ‘‘(B) to eliminate tuition and required fees 

8 for working class and middle class eligible stu9 dents, as described in subsection (d)(3), at pub10 lic 4-year institutions of higher education in the 

11 State or 4-year Tribal Colleges and Universities 

12 of the eligible Indian entity. 

13 ‘‘(2) NON-FEDERAL SHARE REQUIREMENT.— 

14 ‘‘(A) IN GENERAL.—Except as provided in 

15 subparagraph (B), each State or eligible Indian 

16 entity that receives a grant under this section 

17 shall provide a non-Federal share of funds for 

18 an award year from non-Federal sources in an 

19 amount that is equal to 33 percent of the 

20 amount required to eliminate tuition and re21 quired fees— 

22 ‘‘(i) in the case of a State, at commu23 nity colleges in the State for all eligible 

24 students and at public 4-year institutions 

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1 ing class and middle class eligible students, 

2 as described in subsection (d)(3), for the 

3 award year; and 

4 ‘‘(ii) in the case of an eligible Indian 

5 entity, at 2-year Tribal Colleges and Uni6 versities of the eligible Indian entity for all 

7 eligible students and at 4-year Tribal Col8 leges and Universities of the eligible Indian 

9 entity for working class and middle class 

10 eligible students, as described in subsection 

11 (d)(3), for the award year. 

12 ‘‘(B) NON-FEDERAL SHARE REQUIREMENT

13 FOR CERTAIN ELIGIBLE INDIAN ENTITIES.— 

14 ‘‘(i) IN GENERAL.—In the case of an 

15 eligible Indian entity that receives a grant 

16 under this section for an award year for 

17 which not less than 75 percent of the stu18 dents enrolled in the 2-year Tribal Colleges 

19 and Universities and 4-year Tribal Colleges 

20 and Universities of the eligible Indian enti21 ty are low-income students, such eligible 

22 Indian entity shall provide a non-Federal 

23 share of funds from non-Federal sources in 

24 an amount that is equal to not more than 

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1 nate tuition and required fees at 2-year 

2 Tribal Colleges and Universities of the eli3 gible Indian entity for all eligible students 

4 and at 4-year Tribal Colleges and Univer5 sities of the eligible Indian entity for work6 ing class and middle class eligible students, 

7 as described in subsection (d)(3), for the 

8 award year. 

9 ‘‘(ii) LOW-INCOME STUDENT.—In this 

10 subparagraph, the term ‘low-income stu11 dent’ has the meaning given such term by 

12 the Secretary, except that such term shall 

13 not exclude any student eligible for a Fed14 eral Pell Grant under section 401. 

15 ‘‘(iii) DATA.—In calculating the num16 ber of enrolled students and low-income 

17 students for purposes of clause (i), the 

18 Secretary shall use— 

19 ‘‘(I) for the first award year of 

20 the program under this section, the 

21 number of students enrolled in award 

22 year 2015–2016; and 

23 ‘‘(II) for each subsequent award 

24 year, the projected student enrollment 


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1 numbers for the award year for which 

2 the allotment is made. 

3 ‘‘(3) NO IN-KIND CONTRIBUTIONS.—No in-kind 

4 contribution shall count toward the non-Federal 

5 share requirement under paragraph (2). 

6 ‘‘(c) DETERMINATION OF ALLOTMENT.— 

7 ‘‘(1) FIRST AWARD YEAR OF PROGRAM.—The 

8 Secretary shall allot, to each eligible State or eligible 

9 Indian entity that submits an application under this 

10 section for a grant under subsection (b)(1) for the 

11 first award year of the program under this section, 

12 an amount that is equal to 67 percent (or not less 

13 than 95 percent in the case of an eligible Indian en14 tity described in subsection (b)(2)(B)) of the total 

15 revenue received— 

16 ‘‘(A) in the case of a State, from all eligi17 ble students at community colleges in the State 

18 and from working class and middle class eligible 

19 students, as described in subsection (d)(3), at 

20 public 4-year institutions of higher education in 

21 the State in the form of tuition and required 

22 fees for— 

23 ‘‘(i) with respect to a State that did 

24 not eliminate tuition and required fees as 

25 described in paragraphs (2) and (3) of 


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1 subsection (d) for the preceding award 

2 year, award year 2015–2016; or 

3 ‘‘(ii) with respect to a State that has 

4 eliminated tuition and required fees as de5 scribed in such paragraphs, the last award 

6 year that the State charged tuition and re7 quired fees; and 

8 ‘‘(B) in the case of an eligible Indian enti9 ty, from all eligible students at 2-year Tribal 

10 Colleges and Universities of the eligible Indian 

11 entity and from working class and middle class 

12 eligible students, as described in subsection 

13 (d)(3), at 4-year Tribal Colleges and Univer14 sities of the eligible Indian entity, in the form 

15 of tuition and required fees for— 

16 ‘‘(i) with respect to an eligible Indian 

17 entity that did not eliminate tuition and 

18 required fees as described in paragraphs 

19 (2) and (3) of subsection (d) for the pre20 ceding award year, award year 2015–2016; 

21 or 

22 ‘‘(ii) with respect to an eligible Indian 

23 entity that has eliminated tuition and re24 quired fees as described in such para25 graphs, the last award year for which the 


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1 eligible Indian entity charged tuition and 

2 required fees. 

3 ‘‘(2) FIRST AWARD YEAR ALLOTMENT FOR

4 STATES AND ELIGIBLE INDIAN ENTITIES APPLYING

5 AFTER THE FIRST YEAR OF THE PROGRAM.— 

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

7 allot to each eligible State or eligible Indian en8 tity that submits its first application for a 

9 grant under subsection (b)(1) for the second or 

10 a subsequent year of the program under this 

11 section, an amount equal to— 

12 ‘‘(i) the product of— 

13 ‘‘(I) the allotment the eligible 

14 State or eligible Indian entity would 

15 have received in the first award year 

16 of the program under this section if 

17 the State or eligible Indian entity had 

18 submitted an application for such 

19 year; 

20 ‘‘(II) the projected full-time 

21 equivalent eligible students figure for 

22 all community colleges and public 4- 

23 year institutions of higher education 

24 of the eligible State, or all 2-year 

25 Tribal Colleges and Universities and 


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1 4-year Tribal Colleges and Univer2 sities of the eligible Indian entity, for 

3 the award year for which the allot4 ment is made; and 

5 ‘‘(III) the amount of additional 

6 expenditures per full-time equivalent 

7 eligible student by the eligible State or 

8 eligible Indian entity that will be nec9 essary to eliminate tuition and re10 quired fees for each such student for 

11 the award year for which the allot12 ment is made; divided by 

13 ‘‘(ii) the product of— 

14 ‘‘(I) the full-time equivalent eligi15 ble students figure for all community 

16 colleges and public 4-year institutions 

17 of higher education of the eligible 

18 State, or all 2-year Tribal Colleges 

19 and Universities and 4-year Tribal 

20 Colleges and Universities of the eligi21 ble Indian entity, for the first award 

22 year of the program for which the eli23 gible State or eligible Indian entity 

24 was eligible to submit an application 

25 under this section; and 


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1 ‘‘(II) the amount of expenditures 

2 per full-time equivalent eligible stu3 dent by the eligible State or eligible 

4 Indian entity that would have been 

5 necessary to eliminate tuition and re6 quired fees for each such student for 

7 the first award year of the program 

8 for which the eligible State or eligible 

9 Indian entity was eligible to submit an 

10 application under this section. 

11 ‘‘(B) PROJECTED ENROLLMENT.—If the 

12 projected full-time equivalent eligible students 

13 figure of the State or eligible Indian entity 

14 under subparagraph (A) is more than 25 per15 cent larger than the full-time equivalent eligible 

16 students figure for the preceding year, the Sec17 retary may challenge such enrollment projection 

18 and offer an alternative enrollment projection 

19 which shall be used in the formula under sub20 paragraph (A) for determining the allotment. 

21 ‘‘(3) SUBSEQUENT AWARD YEARS.— 

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

23 allot to an eligible State or eligible Indian entity 

24 submitting an application for a grant under 

25 subsection (b)(1) for a second or subsequent 


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1 year after receiving a grant under paragraph 

2 (1) or (2), an amount equal to— 

3 ‘‘(i) the product of— 

4 ‘‘(I) the allotment received for 

5 the first award year for which the eli6 gible State or eligible Indian entity 

7 submitted an application; 

8 ‘‘(II) the projected full-time 

9 equivalent eligible students figure for 

10 all community colleges and public 4- 

11 year institutions of higher education 

12 of the eligible State, or all 2-year 

13 Tribal Colleges and Universities and 

14 4-year Tribal Colleges and Univer15 sities of the eligible Indian entity, for 

16 the award year for which the allot17 ment is made; and 

18 ‘‘(III) the amount of additional 

19 expenditures per full-time equivalent 

20 eligible student by the eligible State or 

21 eligible Indian entity that will be nec22 essary to eliminate tuition and re23 quired fees for each such student for 

24 the award year for which the allot25 ment is made; divided by 


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1 ‘‘(ii) the product of— 

2 ‘‘(I) the full-time equivalent eligi3 ble student figure for all community 

4 colleges and public 4-year institutions 

5 of higher education of the eligible 

6 State, or all 2-year Tribal Colleges 

7 and Universities and 4-year Tribal 

8 Colleges and Universities of the eligi9 ble Indian entity, for the first award 

10 year that the State or eligible Indian 

11 entity participates under paragraph 

12 (1) or (2), as the case may be; and 

13 ‘‘(II) the amount of expenditures 

14 per full-time equivalent eligible stu15 dent by the eligible State or eligible 

16 Indian entity that was necessary to 

17 eliminate tuition and required fees for 

18 each such student for the first award 

19 year that the State or eligible Indian 

20 entity participates under paragraph 

21 (1) or (2), as the case may be. 

22 ‘‘(B) PROJECTED ENROLLMENT.—If the 

23 projected full-time equivalent eligible students 

24 figure of the State or eligible Indian entity 

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1 cent larger than the full-time equivalent eligible 

2 students figure for the preceding year, the Sec3 retary may challenge such enrollment projection 

4 and offer an alternative enrollment projection 

5 which shall be used in the formula under sub6 paragraph (A) for determining the allotment. 

7 ‘‘(4) ACTUAL ENROLLMENT FIGURES.— 

8 ‘‘(A) IN GENERAL.—By not later than No9 vember 1 of the second award year for which a 

10 State or eligible Indian entity receives an allot11 ment under this section, and each succeeding 

12 November 1, such State or eligible Indian entity 

13 shall report to the Secretary its actual full-time 

14 equivalent eligible students figure for the pre15 ceding award year. 

16 ‘‘(B) ADJUSTMENTS.—If the actual full17 time equivalent eligible students figure for the 

18 preceding award year reported under subpara19 graph (A)— 

20 ‘‘(i) exceeds the projected enrollment 

21 that was used for determining the allot22 ment for the preceding award year, not23 withstanding any other provision of this 

24 section, the allotment for the award year in 

25 which the November 1 date falls for the 


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1 State or eligible Indian entity shall be in2 creased to reflect such actual enrollment, 

3 which figure shall be increased by the 

4 State Gross Domestic Product Price Index, 

5 or the Gross Domestic Product Price Index 

6 of the State in which the eligible Indian 

7 entity operates; or 

8 ‘‘(ii) is below the projected enrollment 

9 that was used for determining the allot10 ment for the preceding award year, not11 withstanding any other provision of this 

12 section, the allotment for the award year in 

13 which the November 1 date falls for the 

14 State or eligible Indian entity shall be de15 creased to reflect such actual enrollment, 

16 which figure shall be increased by the aver17 age interest rate on 5-year United States 

18 Treasury securities issued during the pre19 ceding award year. 

20 ‘‘(5) ADDITIONAL FUNDS.—If a State or eligi21 ble Indian entity provides additional funds toward 

22 reducing the cost of attendance and improving in23 struction at institutions of higher education beyond 

24 the cost of eliminating tuition and required fees as 

25 described in paragraphs (2) and (3) of subsection 


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1 (d) for any award year that is more than the non2 Federal share requirement under subsection (b)(2) 

3 and the maintenance of expenditures requirement 

4 under paragraphs (4) and (5) of subsection (d), the 

5 Secretary shall provide to the State or eligible In6 dian entity an amount equal to such additional fund7 ing provided by the State or eligible Indian entity, 

8 which amount provided by the Secretary may be 

9 used for the activities described in subsection (f)(2). 

10 ‘‘(d) STATE AND ELIGIBLE INDIAN ENTITY ELIGI11 BILITY REQUIREMENTS.—In order to be eligible to receive 

12 an allotment under this section for an award year, a State 

13 or eligible Indian entity shall comply with the following: 

14 ‘‘(1) Ensure that public institutions of higher 

15 education in the State or Tribal Colleges and Uni16 versities of the eligible Indian entity maintain ex17 penditures on instruction per full-time equivalent 

18 student at levels that are equal to or exceed the ex19 penditures on instruction per full-time equivalent 

20 student for award year 2015–2016. 

21 ‘‘(2) Ensure that tuition and required fees for 

22 eligible students in the State’s community college 

23 system or eligible students in the 2-year Tribal Col24 leges and Universities of the eligible Indian entity 

25 are eliminated. 


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1 ‘‘(3)(A) Ensure that tuition and required fees 

2 for eligible students attending the State’s public 4- 

3 year institutions of higher education or eligible stu4 dents attending the 4-year Tribal Colleges and Uni5 versities of the eligible Indian entity are eliminated 

6 as follows: 

7 ‘‘(i) For the first award year of the pro8 gram under this section, the State or eligible 

9 Indian entity shall eliminate tuition and re10 quired fees for such students— 

11 ‘‘(I) who are dependent students, 

12 whose parents’ adjusted gross income for 

13 the taxable year that is 1 year prior to the 

14 taxable year that ends immediately prior to 

15 the beginning of the award year is equal to 

16 or less than $125,000; and 

17 ‘‘(II) who are independent students, 

18 whose adjusted gross income for the tax19 able year that is 1 year prior to the taxable 

20 year that ends immediately prior to the be21 ginning of the award year is equal to or 

22 less than $125,000. 

23 ‘‘(ii) For each award year after the first 

24 award year of the program under this section, 

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1 nate tuition and required fees for such stu2 dents— 

3 ‘‘(I) who are dependent students, 

4 whose parents’ adjusted gross income for 

5 the taxable year that is 1 year prior to the 

6 taxable year that ends immediately prior to 

7 the beginning of the award year is equal to 

8 or less than the applicable amount; and 

9 ‘‘(II) who are independent students, 

10 whose adjusted gross income for the tax11 able year that is 1 year prior to the taxable 

12 year that ends immediately prior to the be13 ginning of the award year is equal to or 

14 less than the applicable amount. 

15 ‘‘(B)(i) In this paragraph, the term ‘applicable 

16 amount’ means an amount equal to, for any award 

17 year beginning after the calendar year that precedes 

18 the calendar year in which the first award year of 

19 the program under this section begins, the greater 

20 of— 

21 ‘‘(I) the amount determined under this 

22 subparagraph for the preceding award year, or 

23 ‘‘(II) an amount equal to the product of— 

24 ‘‘(aa) $125,000, and 

25 ‘‘(bb) the ratio of— 


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1 ‘‘(AA) the national average wage 

2 index (as defined in section 209(k)(1) 

3 of the Social Security Act (42 U.S.C. 

4 409(k)(1))) for the calendar year pre5 ceding the calendar year in which the 

6 applicable award year begins, to 

7 ‘‘(BB) the national average wage 

8 index (as so defined) for 2016. 

9 ‘‘(ii) If any amount determined under clause (i) 

10 is not a multiple of $100, such amount shall be 

11 rounded to the nearest multiple of $100. 

12 ‘‘(4) Maintain State operating expenditures per 

13 full-time equivalent student for public institutions of 

14 higher education in the State, or operating expendi15 tures per full-time equivalent student for Tribal Col16 leges and Universities of the eligible Indian entity, 

17 excluding the amount of funds provided under this 

18 section, at a level that is equal to or exceeds the 

19 level of such support for award year 2015–2016. 

20 ‘‘(5) Maintain State expenditures on need-based 

21 financial aid programs for enrollment in public insti22 tutions of higher education in the State or expendi23 tures on need-based financial aid programs for en24 rollment in Tribal Colleges and Universities of the 

25 eligible Indian entity at a level that is equal to or 


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1 exceeds the level of such support for award year 

2 2015–2016. 

3 ‘‘(6) Ensure public institutions of higher edu4 cation in the State or Tribal Colleges and Univer5 sities of the eligible Indian entity maintain funding 

6 for institutional need-based student financial aid in 

7 an amount that is equal to or exceeds the level of 

8 such support for award year 2015–2016. 

9 ‘‘(7) Provide an assurance that not later than 

10 5 years after the first award year for which the 

11 grant is awarded, not less than 75 percent of in12 struction at public institutions of higher education in 

13 the State or Tribal Colleges and Universities of the 

14 eligible Indian entity is provided by tenured or ten15 ure-track faculty. 

16 ‘‘(8) Require that public institutions of higher 

17 education in the State or Tribal Colleges and Uni18 versities of the eligible Indian entity provide, for 

19 each student enrolled at the institution who receives 

20 the maximum Federal Pell Grant award under sub21 part 1 of part A of title IV, institutional student fi22 nancial aid (excluding student loans) in an amount 

23 equal to 100 percent of the difference between— 

24 ‘‘(A) the cost of attendance at such institu25 tion; and 


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1 ‘‘(B) the sum of— 

2 ‘‘(i) the amount of the maximum Fed3 eral Pell Grant award; and 

4 ‘‘(ii) the student’s expected family 

5 contribution. 

6 ‘‘(9) Ensure that public institutions of higher 

7 education in the State or Tribal Colleges and Uni8 versities of the eligible Indian entity not adopt poli9 cies to reduce enrollment. 

10 ‘‘(10) Provide an assurance that public institu11 tions of higher education in the State or Tribal Col12 leges and Universities of the eligible Indian entity 

13 will not charge out of State students an amount that 

14 exceeds the marginal cost of attending institutions of 

15 higher education in the State or Tribal Colleges and 

16 Universities of the eligible Indian entity. 

17 ‘‘(11) Provide an assurance that public institu18 tions of higher education in the State or Tribal Col19 leges and Universities of the eligible Indian entity 

20 that charge non-eligible in-State students tuition and 

21 required fees, will not charge such students a rate 

22 that exceeds the rate for the last year that tuition 

23 and required fees were charged to eligible students, 

24 increased by the percentage change for subsequent 

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1 gible student by the State or eligible entity that is 

2 necessary to continue to eliminate tuition and re3 quired fees for eligible students. 

4 ‘‘(e) SUBMISSION AND CONTENTS OF APPLICA5 TION.—For each award year for which a State or eligible 

6 Indian entity desires a grant under this section, an appli7 cation shall be submitted to the Secretary at such time, 

8 in such manner, and containing such information as the 

9 Secretary may require. Such application shall be sub10 mitted by— 

11 ‘‘(1) in the case of a State, the State agency 

12 with jurisdiction over higher education or another 

13 agency designated by the Governor or chief executive 

14 of the State to administer the program under this 

15 section; and 

16 ‘‘(2) in the case of an eligible Indian entity, the 

17 eligible Indian entity or a Tribal College or Univer18 sity of the eligible Indian entity. 

19 ‘‘(f) USE OF FUNDS.— 

20 ‘‘(1) IN GENERAL.—A State or eligible Indian 

21 entity that receives a grant under this section shall 

22 use the grant funds and the non-Federal share 

23 funds required under this section— 

24 ‘‘(A) to eliminate tuition and required fees 

25 for all eligible students at community colleges 


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1 in the State or at 2-year Tribal Colleges and 

2 Universities of the eligible Indian entity; and 

3 ‘‘(B) to eliminate tuition and required fees 

4 for working class and middle class eligible stu5 dents, as described in subsection (d)(3), at pub6 lic 4-year institutions of higher education in the 

7 State or 4-year Tribal Colleges and Universities 

8 of the eligible Indian entity. 

9 ‘‘(2) ADDITIONAL FUNDING.—Once tuition and 

10 required fees have been eliminated pursuant to para11 graph (1), a State or eligible Indian entity that re12 ceives a grant under this section shall use any re13 maining grant funds and non-Federal share funds 

14 required under this section to reduce the cost of at15 tendance and increase the quality of instruction and 

16 student support services at public institutions of 

17 higher education in the State or at Tribal Colleges 

18 and Universities of the eligible Indian entity by car19 rying out any of the following: 

20 ‘‘(A) Providing additional non-loan aid to 

21 students, which may include need-based student 

22 financial aid, to reduce or eliminate the cost of 

23 attendance for a public institution of higher 

24 education or a Tribal College or University be25 yond eliminating tuition and required fees. 


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1 ‘‘(B) Expanding academic course offerings 

2 and high-quality occupational skills training 

3 programs to students. 

4 ‘‘(C) Increasing the number and percent5 age of full-time instructional faculty, including 

6 full-time tenure and tenure-track instructional 

7 faculty. 

8 ‘‘(D) Providing all faculty with profes9 sional supports to help students succeed, such 

10 as professional development opportunities, office 

11 space, and shared governance in the institution. 

12 ‘‘(E) Compensating part-time faculty for 

13 work done outside of the classroom relating to 

14 instruction, such as holding office hours. 

15 ‘‘(F) Strengthening and ensuring all stu16 dents have access to student support services 

17 such as academic advising, counseling, and tu18 toring. 

19 ‘‘(G) Expanding access to dual or concur20 rent enrollment programs and early college high 

21 school programs. 

22 ‘‘(H) Any other additional activities that 

23 improve instructional quality and academic out24 comes for students as approved by the Sec25 retary through a peer review process. 


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1 ‘‘(3) PROHIBITION.—A State or eligible Indian 

2 entity that receives a grant under this section may 

3 not use grant funds or non-Federal share funds re4 quired under this section— 

5 ‘‘(A) for the construction of a nonacademic 

6 facility, such as a student center or stadium; 

7 ‘‘(B) for merit-based student financial aid; 

8 ‘‘(C) for need-based student financial aid 

9 (except to the extent funds available under sub10 section (c)(5) are used to carry out paragraph 

11 (2)(A)); 

12 ‘‘(D) to pay the salaries or benefits of 

13 school administrators; 

14 ‘‘(E) for capital outlays or deferred main15 tenance; or 

16 ‘‘(F) for expenditures on athletics other 

17 than activities open to all members of the cam18 pus community. 

19 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 

20 ‘‘(1) IN GENERAL.—There are authorized to be 

21 appropriated, and there are appropriated, to carry 

22 out this section— 

23 ‘‘(A) such sums as may be necessary for 

24 the fourth quarter of fiscal year 2017; 


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1 ‘‘(B) $41,000,000,000 for fiscal year 2018; 

2 and 

3 ‘‘(C) such sums as may be necessary for 

4 each of the fiscal years 2019 through 2027. 

5 ‘‘(2) AVAILABILITY OF FUNDS.—Funds made 

6 available pursuant to paragraph (1)(A) shall be 

7 available for obligation from October 1, 2016 to Sep8 tember 30, 2017. Funds made available pursuant to 

9 subparagraph (B) or (C) of paragraph (1) shall be 

10 available for obligation through September 30 of the 

11 fiscal year succeeding the fiscal year for which such 

12 sums were appropriated. 

13 ‘‘SEC. 902. GRANT PROGRAM FOR PRIVATE HISTORICALLY 

14 BLACK COLLEGES AND UNIVERSITIES AND 

15 PRIVATE MINORITY-SERVING INSTITUTIONS. 

16 ‘‘(a) DEFINITIONS.—Except as otherwise provided, in 

17 this section: 

18 ‘‘(1) COMMUNITY COLLEGE.—The term ‘com19 munity college’ has the meaning given the term in 

20 section 901. 

21 ‘‘(2) ELIGIBLE INSTITUTION.— 

22 ‘‘(A) IN GENERAL.—Except as provided in 

23 subparagraph (D), the term ‘eligible institution’ 

24 means a private, nonprofit 2-year institution or 

25 4-year institution that— 


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1 ‘‘(i) is— 

2 ‘‘(I) a part B institution (as de3 fined in section 322); 

4 ‘‘(II) a Hispanic-serving institu5 tion (as defined in section 502); 

6 ‘‘(III) a Tribal College or Univer7 sity (as defined in section 316) whose 

8 entity responsible for the governance, 

9 operation, or control of the College or 

10 University has not received a grant 

11 under section 901; 

12 ‘‘(IV) an Alaska Native-serving 

13 institution or a Native Hawaiian-serv14 ing institution (as defined in section 

15 317(b)); 

16 ‘‘(V) a Predominantly Black in17 stitution (as defined in section 

18 371(c)); 

19 ‘‘(VI) an Asian American and 

20 Native American Pacific Islander21 serving institution (as defined in sec22 tion 371(c)); or 

23 ‘‘(VII) a Native American-serving 

24 nontribal institution (as defined in 

25 section 371(c)); 


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1 ‘‘(ii) has a student body of which not 

2 less than 35 percent are low-income stu3 dents; 

4 ‘‘(iii) ensures that tuition and re5 quired fees for eligible students enrolled in 

6 the institution are eliminated or signifi7 cantly reduced during any period for which 

8 the institution receives a grant under this 

9 section; 

10 ‘‘(iv) maintains expenditures on in11 struction per a full-time equivalent eligible 

12 student at levels that meet or exceed the 

13 expenditures on instruction per a full-time 

14 equivalent eligible student for award year 

15 2015–2016; 

16 ‘‘(v) will invest institutional funds and 

17 seek additional funding to reduce or elimi18 nate tuition and required fees for all stu19 dents; 

20 ‘‘(vi) maintains expenditures on need21 based financial aid programs for students 

22 enrolled at the institution at a level that 

23 meets or exceeds the level of such support 

24 for award year 2015–2016; 


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1 ‘‘(vii) provides an assurance that the 

2 institution will increase the amount of in3 struction provided by tenured or tenure4 track faculty; and 

5 ‘‘(viii) does not adopt policies to re6 duce enrollment. 

7 ‘‘(B) 2-YEAR INSTITUTION.—The term ‘2- 

8 year institution’ means an institution at which 

9 the credential that is predominantly awarded to 

10 students is at the sub-baccalaureate level. 

11 ‘‘(C) 4-YEAR INSTITUTION.—The term ‘4- 

12 year institution’ means an institution that is 

13 not a 2-year institution. 

14 ‘‘(D) EXCEPTION.— 

15 ‘‘(i) IN GENERAL.—An eligible institu16 tion as described in subparagraph (A) shall 

17 not be an eligible institution for purposes 

18 of this section for the period described in 

19 clause (ii) if such institution was a for20 profit institution at any time that con21 verted to a nonprofit institution. 

22 ‘‘(ii) PERIOD OF INELIGIBILITY.—An 

23 institution described under clause (i) shall 

24 not be an eligible institution for purposes 

25 of this section for a period of 25 years 


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1 from the date the institution converted 

2 from a for-profit institution to a nonprofit 

3 institution or 25 years after the date of en4 actment of this Act, whichever period is 

5 longer. 

6 ‘‘(3) ELIGIBLE STUDENT.—The term ‘eligible 

7 student’ means a low-income student enrolled in an 

8 eligible institution who has not obtained a bacca9 laureate degree or a higher degree. 

10 ‘‘(4) FULL-TIME EQUIVALENT ELIGIBLE STU11 DENTS.—The term ‘full-time equivalent eligible stu12 dents’ means the sum of the number of eligible stu13 dents projected to enroll full time at an institution 

14 for an award year, plus the full-time equivalent of 

15 the number of eligible students projected to be en16 rolled part time (determined on the basis of the 

17 quotient of the sum of the credit hours of all part18 time eligible students divided by 12) at such institu19 tion, for such award year. 

20 ‘‘(5) LOW-INCOME STUDENT.—The term ‘low21 income student’ has the meaning given such term by 

22 the Secretary, except that such term shall not ex23 clude any student eligible for a Federal Pell Grant 

24 under section 401. 


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1 ‘‘(6) PUBLIC 4-YEAR INSTITUTION OF HIGHER

2 EDUCATION.—The term ‘public 4-year institution of 

3 higher education’ has the meaning given the term in 

4 section 901. 

5 ‘‘(b) AUTHORIZATION OF GRANT PROGRAM.— 

6 ‘‘(1) IN GENERAL.—From amounts appro7 priated under subsection (e), the Secretary shall 

8 award grants, from allotments under paragraph (2), 

9 to eligible institutions having applications approved 

10 under subsection (c), to enable the eligible institu11 tions to eliminate or significantly reduce tuition and 

12 required fees for eligible students. 

13 ‘‘(2) ALLOTMENTS.—Subject to paragraph (3), 

14 the Secretary shall allot, for each award year, to 

15 each eligible institution having an application ap16 proved under subsection (c), an amount that is equal 

17 to the product of— 

18 ‘‘(A) tuition and required fees for eligible 

19 students at the eligible institution for the award 

20 year, and 

21 ‘‘(B) the number of full-time equivalent eli22 gible students projected to enroll in the eligible 

23 institution for the award year. 

24 ‘‘(3) LIMITATIONS.— 


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1 ‘‘(A) LIMITATIONS ON INSTITUTIONAL AL2 LOTMENTS.—In making allotments under para3 graph (2) for an award year, the Secretary 

4 shall not award an allotment that is— 

5 ‘‘(i) with respect to an eligible institu6 tion that operates in a State that has 

7 eliminated tuition and required fees as de8 scribed in paragraphs (2) and (3) of sec9 tion 901(d) for the preceding award year, 

10 more than the amount equal to the product 

11 of— 

12 ‘‘(I) the number of projected full13 time equivalent eligible students for 

14 the award year; and 

15 ‘‘(II) the expenditures per full16 time equivalent eligible student, in17 cluding the Federal allotment and 

18 non-Federal share, under section 901 

19 for the preceding award year for the 

20 State (or, in the case of a State that 

21 did not receive a grant under such 

22 section for the preceding award year, 

23 the amount needed to eliminate tui24 tion and required fees for full-time 

25 equivalent eligible students in the 


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1 State, calculated in the same manner 

2 as such amount is calculated under 

3 section 901(c) for the preceding 

4 award year for the State), at— 

5 ‘‘(aa) if the eligible institu6 tion is a 2-year institution, com7 munity colleges in the State in 

8 which the institution operates; or 

9 ‘‘(bb) if the eligible institu10 tion is a 4-year institution, public 

11 4-year institutions of higher edu12 cation in the State in which the 

13 institution operates; and 

14 ‘‘(ii) with respect to an eligible insti15 tution that operates in a State that has 

16 not eliminated tuition and required fees as 

17 described in paragraphs (2) and (3) of sec18 tion 901(d) for the preceding award year, 

19 more than the amount equal to the product 

20 of— 

21 ‘‘(I) the number of projected full22 time equivalent eligible students for 

23 the award year; and 


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1 ‘‘(II) the average tuition and re2 quired fees for the preceding award 

3 year at— 

4 ‘‘(aa) if the eligible institu5 tion is a 2-year institution, public 

6 2-year institutions of higher edu7 cation in the State in which the 

8 institution operates; or 

9 ‘‘(bb) if the eligible institu10 tion is a 4-year institution, public 

11 4-year institutions of higher edu12 cation in the State in which the 

13 institution operates. 

14 ‘‘(B) LIMITATIONS ON TUITION HIKES.— 

15 ‘‘(i) FIRST AWARD YEAR.—For the 

16 first award year for which an eligible insti17 tution applies for a grant under this sec18 tion, such eligible institution shall not in19 crease tuition and required fees at a rate 

20 that is greater than any annual increase in 

21 tuition and required fees at the eligible in22 stitution for the 5 years preceding such 

23 first award year. 

24 ‘‘(ii) SUCCEEDING AWARD YEARS.— 


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1 ‘‘(I) IN GENERAL.—For each 

2 award year after the first award year 

3 for which an eligible institution re4 ceives a grant under this section, such 

5 eligible institution shall not increase 

6 tuition and required fees for eligible 

7 students from the preceding award 

8 year at a rate that is greater than the 

9 percentage increase in the Employ10 ment Cost Index for the award year 

11 for which the grant is received, as 

12 compared to the Employment Cost 

13 Index for the award year preceding 

14 the award year for which the grant is 

15 received. 

16 ‘‘(II) EMPLOYMENT COST

17 INDEX.—In this subparagraph, the 

18 term ‘Employment Cost Index’, when 

19 used with respect to an award year, 

20 means the Employment Cost Index 

21 for total compensation for private in22 dustry workers by bargaining status 

23 and census region and division (not 

24 seasonally adjusted) of the division in 

25 which the eligible entity is located, as 


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1 provided by the Bureau of Labor Sta2 tistics of the Department of Labor, 

3 that is provided for the December 

4 that immediately precedes the start of 

5 the award year. 

6 ‘‘(4) ACTUAL ENROLLMENT FIGURES.— 

7 ‘‘(A) IN GENERAL.—By not later than No8 vember 1 of the second award year for which an 

9 eligible institution receives a grant under this 

10 section, such eligible institution shall report to 

11 the Secretary its actual full-time equivalent eli12 gible students figure for the preceding award 

13 year. 

14 ‘‘(B) ADJUSTMENTS.—If the actual full15 time equivalent eligible students figure for the 

16 preceding award year reported under subpara17 graph (A)— 

18 ‘‘(i) exceeds the projected enrollment 

19 that was used for determining the allot20 ment under subparagraph (2)(B) for the 

21 preceding award year, notwithstanding any 

22 other provision of this Act, the allotment 

23 for the award year in which the November 

24 1 date falls for the eligible institution shall 

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1 ment, which figure shall be increased by 

2 the Gross Domestic Product Price Index of 

3 the State in which the eligible institution 

4 operates; or 

5 ‘‘(ii) is below the projected enrollment 

6 that was used for determining the allot7 ment under subparagraph (2)(B) for the 

8 preceding award year, notwithstanding any 

9 other provision of this Act, the allotment 

10 for the award year in which the November 

11 1 date falls for the eligible institution shall 

12 be decreased to reflect such actual enroll13 ment, which figure shall be increased by 

14 the average interest rate on 5-year United 

15 States Treasury securities issued during 

16 the preceding award year. 

17 ‘‘(c) APPLICATION.—An eligible institution that de18 sires to receive a grant under this section shall submit to 

19 the Secretary an application at such time, in such manner, 

20 and containing such information as the Secretary may re21 quire. 

22 ‘‘(d) PROHIBITION.—An eligible institution that re23 ceives a grant under this section may not use grant funds 

24 under this section— 


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1 ‘‘(1) for the construction of a nonacademic fa2 cility, such as a student center or stadium; 

3 ‘‘(2) for merit-based or need-based student fi4 nancial aid; 

5 ‘‘(3) to pay the salaries or benefits of school ad6 ministrators; 

7 ‘‘(4) for capital outlays or deferred mainte8 nance; or 

9 ‘‘(5) for expenditures on athletics other than 

10 activities open to all members of the campus com11 munity. 

12 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated, and there are appro14 priated, to carry out this section— 

15 ‘‘(1) such sums as may be necessary for the 

16 fourth quarter of fiscal year 2017; 

17 ‘‘(2) $1,340,000,000 for fiscal year 2018; and 

18 ‘‘(3) such sums as may be necessary for each 

19 of the fiscal years 2019 through 2027.’’. 

20 SEC. 102. INCREASING SUCCESS FOR LOW-INCOME AND 

21 FIRST GENERATION STUDENTS. 

22 (a) AUTHORIZATION OF APPROPRIATIONS FOR FED23 ERAL TRIO PROGRAMS.—Section 402A(g) of the Higher 

24 Education Act of 1965 (20 U.S.C. 1070a–11(g)) is 

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1 lowing: ‘‘For the purpose of making grants and contracts 

2 under this chapter, there are authorized to be appro3 priated $1,080,000,000 for fiscal year 2018, 

4 $1,260,000,000 for fiscal year 2019, $1,440,000,000 for 

5 fiscal year 2020, $1,620,000,000 for fiscal year 2021, 

6 $1,800,000,000 for fiscal year 2022, and such sums as 

7 may be necessary for each of fiscal years 2023 through 

8 2027.’’. 

9 (b) AUTHORIZATION OF APPROPRIATIONS FOR

10 GEAR UP PROGRAMS.—Section 404H of the Higher 

11 Education Act of 1965 (20 U.S.C. 1070a–28) is amended 

12 by striking ‘‘$400,000,000’’ and all that follows through 

13 the period and inserting ‘‘$410,000,000 for fiscal year 

14 2018 and such sums as may be necessary for each of fiscal 

15 years 2019 through 2027.’’. 

16 TITLE II—EXPANSION OF WORK 

17 STUDY TO MEET THE NEEDS 

18 OF TODAY’S STUDENTS 

19 SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 

20 Section 441(b) of the Higher Education Act of 1965 

21 (20 U.S.C. 1087–51(b)) is amended to read as follows: 

22 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated to carry out this part— 

24 ‘‘(1) $1,000,000,000 for fiscal year 2018; 

25 ‘‘(2) $1,500,000,000 for fiscal year 2019; 


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1 ‘‘(3) $2,000,000,000 for fiscal year 2020; 

2 ‘‘(4) $2,500,000,000 for fiscal year 2021; 

3 ‘‘(5) $3,000,000,000 for fiscal year 2022; and 

4 ‘‘(6) such sums as may be necessary for each 

5 of fiscal years 2023–2027.’’. 

6 SEC. 202. REFORM OF THE WORK STUDY FORMULA. 

7 Section 442 of the Higher Education Act of 1965 (20 

8 U.S.C. 1087–52) is amended— 

9 (1) by striking subsection (a) and inserting the 

10 following: 

11 ‘‘(a) REVISION TO THE FEDERAL WORK STUDY AL12 LOCATION.—The Secretary shall allocate funds under this 

13 section solely on the basis of the self-help need determina14 tion described under subsection (c).’’; 

15 (2) in subsection (c)— 

16 (A) in paragraph (2), by striking ‘‘To de17 termine the self-help need of an institution’s eli18 gible undergraduate students,’’ and inserting 

19 ‘‘Until such time as the Secretary establishes a 

20 revised method to determine the self-help need 

21 of an institution’s eligible undergraduate stu22 dents, in accordance with paragraph (5),’’; 

23 (B) in paragraph (3), by striking ‘‘To de24 termine the self-help need of an institution’s eli25 gible graduate and professional students’’, and 


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1 inserting ‘‘Until such time as the Secretary es2 tablishes a revised method to determine the 

3 self-help need of an institution’s eligible grad4 uate and professional students, in accordance 

5 with paragraph (5),’’; and 

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

7 ‘‘(5) Not later than 1 year after the date of en8 actment of the College for All Act of 2017, the Sec9 retary shall establish revised methods for deter10 mining the self-help need of an institution’s eligible 

11 undergraduate students, as described in paragraph 

12 (2), and eligible graduate and professional students, 

13 as described in paragraph (3), that shall take into 

14 account the number of Federal Pell Grant eligible 

15 low-income and moderate-income students that an 

16 eligible institution serves and provide considerations 

17 for eligible institutions that successfully demonstrate 

18 improved employment outcomes. The Secretary shall 

19 promulgate any regulations necessary to carry out 

20 the revised methods of determining an eligible insti21 tution’s self-help need under this subsection.’’; and 

22 (3) by adding at the end the following: 

23 ‘‘(f) FUNDS TO EXPAND JOB LOCATION DEVELOP24 MENT PROGRAMS.—Notwithstanding any other provision 

25 of this part, to promote career readiness and improve the 


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1 employment skills of Federal Pell Grant-eligible students, 

2 the Secretary is authorized to enter into agreements with 

3 eligible institutions under which such institution may use 

4 not more than 20 percent or $150,000 of its allotment 

5 under this section, whichever amount is less, to expand 

6 job location development programs, which may be coordi7 nated with State and local workforce development 

8 boards.’’. 

9 TITLE III—STUDENT LOAN RE10 LIEF FOR MILLIONS OF BOR11 ROWERS 

12 SEC. 301. RESTORATION OF CERTAIN INTEREST RATE PRO13 VISIONS. 

14 Section 455(b) of the Higher Education Act of 1965 

15 (20 U.S.C. 1087e(b)) is amended— 

16 (1) in paragraph (8)— 

17 (A) in the heading, by striking ‘‘ON OR

18 AFTER JULY 1, 2013’’ and inserting ‘‘ON OR

19 AFTER JULY 1, 2013, AND BEFORE JULY 1, 

20 2017’’; and 

21 (B) by striking ‘‘on or after July 1, 2013’’ 

22 and inserting ‘‘on or after July 1, 2013, and 

23 before July 1, 2017’’ each place the term ap24 pears; 


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1 (2) by redesignating paragraphs (9) and (10) 

2 as paragraphs (10) and (11), respectively; and 

3 (3) by inserting after paragraph (8) the fol4 lowing: 

5 ‘‘(9) INTEREST RATE PROVISIONS FOR NEW

6 LOANS ON OR AFTER JULY 1, 2017.— 

7 ‘‘(A) RATES FOR UNDERGRADUATE FDSL

8 AND FDUSL.—Notwithstanding the preceding 

9 paragraphs of this subsection, for Federal Di10 rect Stafford Loans and Federal Direct Unsub11 sidized Stafford Loans issued to undergraduate 

12 students, for which the first disbursement is 

13 made on or after July 1, 2017, the applicable 

14 rate of interest shall, during any 12-month pe15 riod beginning on July 1 and ending on June 

16 30, be determined on the preceding June 1 and 

17 be equal to— 

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

19 day Treasury bills auctioned at the final 

20 auction held prior to such June 1; plus 

21 ‘‘(ii) 1.09 percent, 

22 except that such rate shall not exceed 5 per23 cent. 

24 ‘‘(B) IN SCHOOL AND GRACE PERIOD

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1 standing the preceding paragraphs of this sub2 section, with respect to any Federal Direct 

3 Stafford Loan or Federal Direct Unsubsidized 

4 Stafford Loan issued to an undergraduate stu5 dent for which the first disbursement is made 

6 on or after July 1, 2017, the applicable rate of 

7 interest for interest which accrues— 

8 ‘‘(i) prior to the beginning of the re9 payment period of the loan; or 

10 ‘‘(ii) during the period in which prin11 cipal need not be paid (whether or not 

12 such principal is in fact paid) by reason of 

13 a provision described in subsection (f), 

14 shall be determined under subparagraph (A) by 

15 substituting ‘0.49 percent’ for ‘1.09 percent’. 

16 ‘‘(C) RATES FOR GRADUATE AND PROFES17 SIONAL FDUSL.—Notwithstanding the pre18 ceding paragraphs of this subsection, for Fed19 eral Direct Unsubsidized Stafford Loans issued 

20 to graduate or professional students, for which 

21 the first disbursement is made on or after July 

22 1, 2017, the applicable rate of interest shall, 

23 during any 12-month period beginning on July 

24 1 and ending on June 30, be determined under 

25 subparagraph (A)— 


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1 ‘‘(i) by substituting ‘1.86 percent’ for 

2 ‘1.09 percent’; and 

3 ‘‘(ii) by substituting ‘8.25 percent’ for 

4 ‘5 percent’. 

5 ‘‘(D) IN SCHOOL AND GRACE PERIOD

6 RULES FOR GRADUATE AND PROFESSIONAL

7 STUDENTS.—Notwithstanding the preceding 

8 paragraphs of this subsection, with respect to 

9 any Federal Direct Unsubsidized Stafford Loan 

10 issued to a graduate student or professional 

11 student for which the first disbursement is 

12 made on or after July 1, 2017, the applicable 

13 rate of interest for interest which accrues— 

14 ‘‘(i) prior to the beginning of the re15 payment period of the loan; or 

16 ‘‘(ii) during the period in which prin17 cipal need not be paid (whether or not 

18 such principal is in fact paid) by reason of 

19 a provision described in subsection (f), 

20 shall be determined under subparagraph (A) by 

21 substituting ‘1.26 percent’ for ‘1.09 percent’. 

22 ‘‘(E) PLUS LOANS.—Notwithstanding the 

23 preceding paragraphs of this subsection, with 

24 respect to Federal Direct PLUS Loan for which 

25 the first disbursement is made on or after July 


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1 1, 2017, the applicable rate of interest shall be 

2 determined under subparagraph (A)— 

3 ‘‘(i) by substituting ‘2.36 percent’ for 

4 ‘1.09 percent’; and 

5 ‘‘(ii) by substituting ‘8.25 percent’ for 

6 ‘5 percent’. 

7 ‘‘(F) CONSOLIDATION LOANS.—Notwith8 standing the preceding paragraphs of this sub9 section, any Federal Direct Consolidation loan 

10 for which the application is received on or after 

11 July 1, 2017, shall bear interest at an annual 

12 rate on the unpaid principal balance of the loan 

13 that is equal to the lesser of— 

14 ‘‘(i) the weighted average of the inter15 est rates on the loans consolidated, rounded to the nearest higher 1 16 ⁄8 of 1 percent; 

17 or 

18 ‘‘(ii) 8.25 percent.’’. 

19 SEC. 302. BORROWER MODIFICATION OF INTEREST RATES 

20 UNDER TITLE IV. 

21 Section 455(b) of the Higher Education Act of 1965 

22 (20 U.S.C. 1087e(b)), as amended by section 301, is fur23 ther amended by adding at the end the following: 

24 ‘‘(12) BORROWER MODIFICATION OF INTEREST

25 RATE.— 


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1 ‘‘(A) MODIFICATION.—Notwithstanding 

2 any other provision of law, the borrower of a 

3 Federal Stafford Loan under section 428, a 

4 Federal Direct Stafford Loan, a Federal Un5 subsidized Stafford Loan under section 428H, a 

6 Federal Direct Unsubsidized Stafford Loan, a 

7 Federal PLUS Loan under section 428B, a 

8 Federal Direct PLUS Loan, a Federal Consoli9 dation Loan under section 428C, or a Federal 

10 Direct Consolidation Loan may elect to modify 

11 the interest rate of the loan to be equal to— 

12 ‘‘(i) in the case of a Federal Direct 

13 Stafford Loan, a Federal Direct Unsub14 sidized Stafford Loan, a Federal Direct 

15 PLUS Loan, or a Federal Direct Consoli16 dation Loan, the interest rate that would 

17 be applicable to such loan if such loan were 

18 first disbursed (or in the case of a Federal 

19 Direct Consolidation Loan, first applied 

20 for) on the date on which such borrower 

21 elects to modify the interest rate of such 

22 loan; and 

23 ‘‘(ii) in the case of a Federal Stafford 

24 Loan, a Federal Unsubsidized Stafford 

25 Loan, a Federal PLUS Loan, or a Federal 


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1 Consolidation Loan, the weighted average 

2 of the interest rates applicable to loans 

3 under part B on the date the loan was first 

4 disbursed (or in the case of a Federal Con5 solidation Loan, first applied for). 

6 ‘‘(B) FIXED RATE.—Except as provided in 

7 subparagraph (C), an interest rate elected 

8 under subparagraph (A) for a loan shall be 

9 fixed for the life of the loan. 

10 ‘‘(C) CONTINUING AUTHORITY TO MOD11 IFY.—A borrower may elect to modify the inter12 est rate of a loan in accordance with subpara13 graph (A) at any time during the life of the 

14 loan.’’. 

15 SEC. 303. EXCESS REVENUE IN THE FEDERAL DIRECT LOAN 

16 PROGRAM. 

17 (a) IN GENERAL.—The Secretary of Education shall, 

18 for each fiscal year beginning with the first full fiscal year 

19 following the date of enactment of this Act, as soon as 

20 practicable after the end of such fiscal year, determine 

21 whether the amount of Federal funds expended to carry 

22 out the William D. Ford Federal Direct Loan Program 

23 under part D of title IV of the Higher Education Act of 

24 1965 (20 U.S.C. 1087a et seq.) during such fiscal year 


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1 was less than the revenue received from such Program 

2 during such fiscal year. 

3 (b) EXCESS REVENUE.—If the Secretary determines, 

4 for any fiscal year, that the amount of Federal funds ex5 pended to carry out such Federal Direct Loan Program, 

6 as described in subsection (a), during such fiscal year was 

7 less than the revenue received from such Program during 

8 such fiscal year, the Secretary shall use the revenue in 

9 excess of the funds expended to carry out the Federal Pell 

10 Grant Program under subpart 1 of part A of title IV of 

11 the Higher Education Act of 1965 (20 U.S.C. 1070a et 

12 seq.) for the succeeding fiscal year. 

13 TITLE IV—SNYDER ACT 

14 SEC. 401. RULE OF CONSTRUCTION REGARDING THE SNY15 DER ACT. 

16 Nothing in this Act, or an amendment made by this 

17 Act, shall be construed to change or abrogate the Federal 

18 Government’s responsibilities under the Act of November 

19 2, 1921 (commonly known as the ‘‘Snyder Act’’) (25 

20 U.S.C. 13). 

Æ 


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