II 

109TH CONGRESS 

2D SESSION S. 2243 

To make college more affordable by expanding and enhancing financial aid 

options for students and their families and providing loan forgiveness 

opportunities for public service employees, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 2, 2006 

Mr. MENENDEZ introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To make college more affordable by expanding and enhancing 

financial aid options for students and their families and 

providing loan forgiveness opportunities for public service 

employees, and for other purposes. 

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 Access and 

5 Affordability Act’’. 
2 

•S 2243 IS

1 SEC. 2. EXPANSION OF HOPE AND LIFETIME LEARNING 

2 CREDITS. 

3 (a) HOPE SCHOLARSHIP CREDIT AND LIFETIME

4 LEARNING CREDIT EXPANDED TO COVER EXPENSES FOR

5 OTHER EDUCATIONAL EXPENSES.— 

6 (1) IN GENERAL.—Sections 25A and 6050S of 

7 the Internal Revenue Code of 1986 are each amend8 ed by striking ‘‘qualified tuition and related ex9 penses’’ each place it appears and inserting ‘‘quali10 fied higher education expenses’’. 

11 (2) QUALIFIED HIGHER EDUCATION EX12 PENSES.—Section 25A(f)(1) of the Internal Revenue 

13 Code of 1986 is amended to read as follows: 

14 ‘‘(1) QUALIFIED HIGHER EDUCATION EX15 PENSES.— 

16 ‘‘(A) IN GENERAL.—The term ‘qualified 

17 higher education expenses’ means the tuition, 

18 fees, books, supplies, and equipment required 

19 for the enrollment or attendance of— 

20 ‘‘(i) the taxpayer, 

21 ‘‘(ii) the taxpayer’s spouse, or 

22 ‘‘(iii) any dependent of the taxpayer 

23 with respect to whom the taxpayer is al24 lowed a deduction under section 151, 
3 

•S 2243 IS

1 at an eligible educational institution for courses 

2 of instruction of such individual at such institu3 tion. 

4 ‘‘(B) SPECIAL NEEDS SERVICES.—In the 

5 case of an individual described in subparagraph 

6 (A) with special needs, such term includes ex7 penses for special needs services which are in8 curred in connection with such enrollment or 

9 attendance.’’. 

10 (3) CONFORMING AMENDMENT.—Paragraph (1) 

11 of section 222 of the Internal Revenue Code of 1986 

12 is amended to read as follows: 

13 ‘‘(1) QUALIFIED TUITION AND RELATED EX14 PENSES.— 

15 ‘‘(A) IN GENERAL.—The term ‘qualified 

16 tuition and related expenses’ means tuition and 

17 fees required for the enrollment or attendance 

18 of— 

19 ‘‘(i) the taxpayer, 

20 ‘‘(ii) the taxpayer’s spouse, or 

21 ‘‘(iii) any dependent of the taxpayer 

22 with respect to whom the taxpayer is al23 lowed a deduction under section 151, 
4 

•S 2243 IS

1 at an eligible educational institution for courses 

2 of instruction of such individual at such institu3 tion. 

4 ‘‘(B) EXCEPTION FOR EDUCATION INVOLV5 ING SPORTS, ETC.—Such term does not include 

6 expenses with respect to any course or other 

7 education involving sports, games, or hobbies, 

8 unless such course or other education is part of 

9 the individual’s degree program. 

10 ‘‘(C) EXCEPTION FOR NONACADEMIC

11 FEES.—Such term does not include student ac12 tivity fees, athletic fees, insurance expenses, or 

13 other expenses unrelated to an individual’s aca14 demic course of instruction. 

15 ‘‘(D) REDUCTION.—The qualified tuition 

16 and related expenses shall be reduced in the 

17 same manner as under section 25A(g)(2).’’. 

18 (b) INCREASE IN PER STUDENT LIMITATION FOR

19 HOPE SCHOLARSHIP CREDIT.— 

20 (1) IN GENERAL.—Subparagraph (B) of section 

21 25A(b)(1) of the Internal Revenue Code of 1986 is 

22 amended by striking ‘‘the applicable limit’’ and in23 serting ‘‘$4,000’’. 

24 (2) INFLATION ADJUSTMENT.—Paragraph (1) 

25 of section 25A(h) of the Internal Revenue Code of 
5 

•S 2243 IS

1 1986 is amended by redesignating subparagraph (B) 

2 as subparagraph (C) and by inserting after subpara3 graph (A) the following new subparagraph: 

4 ‘‘(B) $4,000 AMOUNT.—In the case of a 

5 taxable year beginning after 2006, the $4,000 

6 amount contained in subsection (b)(1)(B) shall 

7 be increased by an amount equal to— 

8 ‘‘(i) such dollar amount, multiplied by 

9 ‘‘(ii) the cost-of-living adjustment de10 termined under section 1(f)(3) for the cal11 endar year in which the taxable year be12 gins, determined by substituting ‘calendar 

13 year 2005’ for ‘calendar year 1992’ in sub14 paragraph (B) thereof.’’. 

15 (3) CONFORMING AMENDMENT.—Subsection (b) 

16 of section 25A of the Internal Revenue Code of 1986 

17 is amended by striking paragraph (4). 

18 (c) INCREASE IN GROSS INCOME LIMITATION.— 

19 (1) IN GENERAL.—Clause (ii) of section 

20 25A(d)(2)(A) of the Internal Revenue Code of 1986 

21 is amended by striking ‘‘$40,000 ($80,000’’ and in22 serting ‘‘$58,000 (twice such amount’’. 

23 (2) INFLATION ADJUSTMENT.—Subparagraph 

24 (A) of section 25A(h)(2) of the Internal Revenue 

25 Code of 1986 is amended to read as follows: 
6 

•S 2243 IS

1 ‘‘(A) IN GENERAL.—In the case of a tax2 able year beginning after 2006, the $58,000 

3 amount in subsection (d)(2) shall be increased 

4 by an amount equal to— 

5 ‘‘(i) such dollar amount, multiplied by 

6 ‘‘(ii) the cost-of-living adjustment de7 termined under section 1(f)(3) for the cal8 endar year in which the taxable year be9 gins, determined by substituting ‘calendar 

10 year 2005’ for ‘calendar year 1992’ in sub11 paragraph (B) thereof.’’. 

12 (d) HOPE SCHOLARSHIP CREDIT AVAILABLE FOR 4 

13 YEARS.—Paragraph (2) of section 25A(b) of the Internal 

14 Revenue Code of 1986 is amended by striking ‘‘2’’ each 

15 place it appears in subparagraphs (A) and (C) and insert16 ing ‘‘4’’. 

17 (e) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to expenses paid after December 

19 31, 2005, (in taxable years ending after such date) for 

20 education furnished in academic periods beginning after 

21 such date. 

22 SEC. 3. LOAN FORGIVENESS FOR PUBLIC SERVICE EM23 PLOYEES. 

24 Section 428K of the Higher Education Act of 1965 

25 (20 U.S.C. 1078–11) is amended to read as follows: 
7 

•S 2243 IS

1 ‘‘SEC. 428K. LOAN FORGIVENESS FOR PUBLIC SERVICE EM2 PLOYEES. 

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

4 ‘‘(1) to reduce the burden of student debt, par5 ticularly for Americans who dedicate their careers to 

6 meeting certain urgent national needs; and 

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

8 important public service careers. 

9 ‘‘(b) LOAN FORGIVENESS.— 

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

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

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

13 Direct Stafford Loan or Federal Direct Unsub14 sidized Stafford Loan, a Federal Direct Consolida15 tion Loan, or a Federal Perkins Loan for any new 

16 borrower after the date of enactment of the Higher 

17 Education Amendments of 1998, who— 

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

19 public service position described in paragraph 

20 (2); and 

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

22 the borrower seeks forgiveness. 

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

24 For purposes of this section, an individual shall be 

25 treated as employed in a qualified public service po26 sition if the individual is any of the following: 
8 

•S 2243 IS

1 ‘‘(A) HIGHLY QUALIFIED TEACHERS OF

2 MATHEMATICS, SCIENCE, AND BILINGUAL AND

3 SPECIAL EDUCATION AND IN LOW-INCOME COM4 MUNITIES.—An individual who— 

5 ‘‘(i) is highly qualified as such term is 

6 defined in section 9101 of the Elementary 

7 and Secondary Education Act of 1965; and 

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

9 teacher for service in a public or nonprofit 

10 private elementary or secondary school 

11 that is in the school district of a local edu12 cational agency that is eligible in such year 

13 for assistance pursuant to title I of the El14 ementary and Secondary Education Act of 

15 1965, and which for the purpose of this 

16 paragraph and for that year has been de17 termined by the Secretary (pursuant to 

18 regulations and after consultation with the 

19 State educational agency of the State in 

20 which the school is located) to be a school 

21 in which the enrollment of children counted 

22 under section 1113(a)(5) of the Elemen23 tary and Secondary Education Act of 1965 

24 exceeds 40 percent of the total enrollment 

25 of that school; or 
9 

•S 2243 IS

1 ‘‘(II) has obtained employment as a 

2 full-time teacher of mathematics, science, 

3 or bilingual or special education. 

4 ‘‘(B) FIRST RESPONDERS IN LOW-INCOME

5 COMMUNITIES.—An individual who, as deter6 mined by the Secretary of Education by regula7 tion— 

8 ‘‘(i) has obtained employment as a 

9 firefighter, police officer, or emergency 

10 medical technician; and 

11 ‘‘(ii) serves a low-income community. 

12 ‘‘(C) NURSES IN LOW INCOME COMMU13 NITIES.—An individual who is an eligible nurse 

14 and has obtained employment— 

15 ‘‘(i)(I) in a clinical setting; or 

16 ‘‘(II) as a member of the nursing fac17 ulty at an accredited school of nursing (as 

18 those terms are defined in section 801 of 

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

20 296)); and 

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

22 community. 

23 ‘‘(D) CHILD WELFARE WORKERS.—An in24 dividual who— 
10 

•S 2243 IS

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

2 work or a related field with a focus on 

3 serving children and families (as deter4 mined in accordance with regulations pre5 scribed by the Secretary); and 

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

8 ‘‘(c) LOAN REPAYMENT.— 

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

10 the obligation to repay a total of not more than 

11 $17,500 of principal and interest as follows: 

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

13 of service by an individual in a qualified public 

14 service position, 15 percent of the total amount 

15 of principal and interest of the loans described 

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

17 outstanding immediately preceding such first 

18 year of such service; 

19 ‘‘(B) after each of the third or fourth years 

20 of such service, 20 percent of such total 

21 amount; and 

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

23 percent of such total amount. 

24 ‘‘(2) TREATMENT OF CONSOLIDATION LOANS.— 

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

•S 2243 IS

1 or for a Federal Direct Consolidation Loan may be 

2 a qualified loan amount for the purposes of this sub3 section only to the extent that such loan amount was 

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

5 for a borrower who meets the requirements of sub6 section (b), as determined in accordance with regula7 tions prescribed by the Secretary. 

8 ‘‘(3) CONSTRUCTION.—Nothing in this section 

9 shall be construed to authorize the refunding of any 

10 repayment of a loan made under section 428 or 

11 428H, a Federal Direct Stafford Loan or Federal 

12 Direct Unsubsidized Stafford Loan, a Federal Direct 

13 Consolidation Loan, or a Federal Perkins Loan. 

14 ‘‘(4) INTEREST.—If a portion of a loan is re15 paid by the Secretary under this section for any 

16 year, the proportionate amount of interest on such 

17 loan that accrues for such year shall be repaid by 

18 the Secretary. 

19 ‘‘(5) INELIGIBILITY OF NATIONAL SERVICE

20 AWARD RECIPIENTS.—No student borrower may, for 

21 the same service, receive a benefit under both this 

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

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

24 et seq.). 
12 

•S 2243 IS

1 ‘‘(6) INELIGIBILITY FOR DOUBLE BENEFITS.— 

2 No borrower may receive a reduction of loan obliga3 tions under both this section and section 428J or 

4 460. 

5 ‘‘(7) CONTINUED ELIGIBILITY OF TEACHERS.— 

6 Any teacher who performs service in a school that— 

7 ‘‘(A) meets the requirements of subsection 

8 (b)(2)(A)(ii)(I) in any year during such service; 

9 and 

10 ‘‘(B) in a subsequent year fails to meet the 

11 requirements of such subsection, may continue 

12 to teach in such school and shall be eligible for 

13 loan forgiveness pursuant to subsection (b). 

14 ‘‘(d) REPAYMENT TO ELIGIBLE LENDERS AND

15 HOLDERS.—The Secretary shall pay to each eligible lend16 er or holder for each fiscal year an amount equal to the 

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

18 are subject to repayment pursuant to this section for such 

19 year. 

20 ‘‘(e) APPLICATION FOR REPAYMENT.— 

21 ‘‘(1) IN GENERAL.—Each eligible individual de22 siring loan repayment under this section shall sub23 mit a complete and accurate application to the Sec24 retary at such time, in such manner, and containing 

25 such information as the Secretary may require. 
13 

•S 2243 IS

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

2 apply for loan repayment under this section after 

3 completing each of the consecutive years of quali4 fying service described in subsection (c)(1). The bor5 rower may elect to receive forbearance while engaged 

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

7 unless the borrower is in deferment while so en8 gaged. 

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

10 prescribe such regulations as may be necessary to carry 

11 out the provisions of this section. 

12 ‘‘(g) DEFINITIONS.—In this section: 

13 ‘‘(1) CHILD WELFARE SERVICES.—The term 

14 ‘child welfare services’ has the meaning given the 

15 term in section 425 of the Social Security Act. 

16 ‘‘(2) DEGREE.—The term ‘degree’ means an as17 sociate or baccalaureate degree awarded by an insti18 tution of higher education. 

19 ‘‘(3) ELIGIBLE NURSE.—The term ‘eligible 

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

21 ‘‘(A) The nurse graduated from— 

22 ‘‘(i) an accredited school of nursing 

23 (as those terms are defined in section 801 

24 of the Public Health Service Act (42 

25 U.S.C. 296)); 
14 

•S 2243 IS

1 ‘‘(ii) a nursing center; or 

2 ‘‘(iii) an academic health center that 

3 provides nurse training. 

4 ‘‘(B) The nurse holds a valid and unre5 stricted license to practice nursing in the State 

6 in which the nurse practices in a clinical set7 ting. 

8 ‘‘(C) The nurse holds 1 or more of the fol9 lowing: 

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

11 an equivalent degree. 

12 ‘‘(ii) A nursing degree from a colle13 giate school of nursing (as defined in sec14 tion 801 of the Public Health Service Act 

15 (42 U.S.C. 296)). 

16 ‘‘(iii) A nursing degree from an asso17 ciate degree school of nursing (as defined 

18 in section 801 of the Public Health Service 

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

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

21 school of nursing (as defined in section 

22 801 of the Public Health Service Act (42 

23 U.S.C. 296)). 

24 ‘‘(4) LOW-INCOME COMMUNITY.—In this sub25 section, the term ‘low-income community’ means a 
15 

•S 2243 IS

1 community in which 70 percent of households earn 

2 less than 85 percent of the State median household 

3 income. 

4 ‘‘(5) YEAR.—The term ‘year’, where applied to 

5 service as a teacher (or service as a member of the 

6 nursing faculty of an accredited school of nursing 

7 (as those terms are defined in section 801 of the 

8 Public Health Service Act (42 U.S.C. 296))), means 

9 an academic year as defined by the Secretary.’’. 

10 SEC. 4. YEAR-ROUND PELL GRANTS. 

11 Section 401(b)(6) of the Higher Education Act of 

12 1965 (20 U.S.C. 1070a(b)(6)) is amended by striking 

13 ‘‘may allow, on a case-by-case basis,’’ and inserting ‘‘shall 

14 allow’’. 

15 SEC. 5. SPECIAL TRANSITION ASSISTANCE PLANS FOR BOR16 ROWERS. 

17 (a) PLANS AUTHORIZED.—Section 428(b)(9) of the 

18 Higher Education Act of 1965 (20 U.S.C. 1078(b)(9)) is 

19 amended by adding at the end the following: 

20 ‘‘(C) SPECIAL TRANSITION ASSISTANCE

21 PLANS.—In addition to the plans required by 

22 subparagraph (A), the lender shall provide a 

23 borrower who has not yet completed 12 months 

24 in the repayment period with the option to 

25 repay a loan made under this section in accord-
16 

•S 2243 IS

1 ance with a special transition assistance plan. 

2 The interest rate on a loan for which the bor3 rower elected a special transition assistance 

4 plan shall be determined in accordance with 

5 section 427A(k) or 427A(l), as applicable. If a 

6 borrower participates in a special transition as7 sistance plan for 24 or more months, and then 

8 repays the outstanding balance of the loan more 

9 than 24 months prior to the last scheduled pay10 ment on the loan, the borrower shall repay the 

11 Secretary the amount of interest that accrued 

12 on the loan during the 24 months beginning on 

13 the effective date of the plan.’’. 

14 (b) INTEREST RATES.— 

15 (1) PRE-2006 LOANS.—Section 427A(k) of such 

16 Act (20 U.S.C. 1077a(k)) is amended— 

17 (A) by redesignating paragraph (5) as 

18 paragraph (6); and 

19 (B) by inserting after paragraph (4) the 

20 following new paragraph: 

21 ‘‘(5) SPECIAL TRANSITION ASSISTANCE PLANS

22 INTEREST RATES.— 

23 ‘‘(A) IN GENERAL.—Notwithstanding para24 graph (1), with respect to any loan for which 
17 

•S 2243 IS

1 the borrower elected a special transition assist2 ance plan as provided in section 428(b)(9)(C)— 

3 ‘‘(i) for 24 months beginning on the 

4 effective date of the plan the applicable 

5 rate of interest shall be 3.4 percent; and 

6 ‘‘(ii) for the last 24 months of the 

7 scheduled repayment period the applicable 

8 rate of interest shall be computed for each 

9 calendar quarter beginning January 1, 

10 April 1, July 1, and October 1 of each 

11 year— 

12 ‘‘(I) by determining the average 

13 of the bond equivalent rates of the 

14 quotes of the 3-month commercial 

15 paper (financial) rates in effect for 

16 each of the days in such quarter as 

17 reported by the Federal Reserve in 

18 Publication H–15 (or its successor) 

19 for such 3-month period; 

20 ‘‘(II) by subtracting the applica21 ble interest rates on such loans from 

22 such average bond equivalent rate; 

23 ‘‘(III) by adding 2.34 percent to 

24 the resultant percent; and 
18 

•S 2243 IS

1 ‘‘(IV) by dividing the resultant 

2 percent by 4. 

3 ‘‘(B) EXCEPTION.—The interest rate on a 

4 loan for which the borrower elected a special 

5 transition assistance plan for the period begin6 ning the first day of the last 24 months of the 

7 scheduled repayment period until the beginning 

8 of the first calendar quarter thereafter will be 

9 computed using the average of the bond equiva10 lent rates of the quotes of the 3-month commer11 cial paper (financial) rates in effect for the 

12 quarter ending the previous March 31, June 30, 

13 September 30, or December 31.’’. 

14 (2) POST-2006 LOANS.—Section 427A(l) of such 

15 Act (20 U.S.C. 1077a(l)) is amended by adding at 

16 the end the following: 

17 ‘‘(4) SPECIAL TRANSITION ASSISTANCE PLANS

18 INTEREST RATES.— 

19 ‘‘(A) IN GENERAL.—Notwithstanding para20 graph (1), with respect to any loan for which 

21 the borrower elected a special transition assist22 ance plan as provided in section 428(b)(9)(C)— 

23 ‘‘(i) for 24 months beginning on the 

24 effective date of the plan the applicable 

25 rate of interest shall be 3.4 percent; and 
19 

•S 2243 IS

1 ‘‘(ii) for the last 24 months of the 

2 scheduled repayment period the applicable 

3 rate of interest shall be computed for each 

4 calendar quarter beginning January 1, 

5 April 1, July 1, and October 1 of each 

6 year— 

7 ‘‘(I) by determining the average 

8 of the bond equivalent rates of the 

9 quotes of the 3-month commercial 

10 paper (financial) rates in effect for 

11 each of the days in such quarter as 

12 reported by the Federal Reserve in 

13 Publication H–15 (or its successor) 

14 for such 3-month period; 

15 ‘‘(II) by subtracting the applica16 ble interest rates on such loans from 

17 such average bond equivalent rate; 

18 ‘‘(III) by adding 2.34 percent to 

19 the resultant percent; and 

20 ‘‘(IV) by dividing the resultant 

21 percent by 4. 

22 ‘‘(B) EXCEPTION.—The interest rate on a 

23 loan for which the borrower elected a special 

24 transition assistance plan for the period begin25 ning the first day of the last 24 months of the 
20 

•S 2243 IS

1 scheduled repayment period until the beginning 

2 of the first calendar quarter thereafter will be 

3 computed using the average of the bond equiva4 lent rates of the quotes of the 3-month commer5 cial paper (financial) rates in effect for the 

6 quarter ending the previous March 31, June 30, 

7 September 30, or December 31.’’. 

8 (c) ADDITIONAL CONFORMING AMENDMENTS.— 

9 (1) Section 427(a)(2)(H) of such Act (20 

10 U.S.C. 1077(a)(2)(H)) is amended by inserting after 

11 ‘‘regulations of the Secretary’’ the following: ‘‘or in 

12 accordance with a special transition assistance plan 

13 as provided in section 428(b)(9)(C)’’. 

14 (2) Section 428(b)(1)(E)(i) of such Act (20 

15 U.S.C. 1078(b)(1)(E)(i)) is amended by inserting 

16 after ‘‘regulations of the Secretary’’ the following: 

17 ‘‘or in accordance with a special transition assist18 ance plan as provided in section 428(b)(9)(C)’’. 

19 (3) Section 428(b)(1)(L)(i) of such Act (20 

20 U.S.C. 1078(b)(1)(L)(i)) is amended by inserting 

21 before ‘‘, be less than $600’’ the following: ‘‘or the 

22 borrower is in the first 24 months after the borrower 

23 elected a special transition assistance plan as pro24 vided in section 428(b)(9)(C)’’. 
21 

•S 2243 IS

1 (4) Section 428C(a)(4)(A) of such Act (20 

2 U.S.C. 1078–3(a)(4)(A)) is amended by inserting 

3 before the semicolon the following: ‘‘except a loan 

4 for which the borrower elected a special transition 

5 assistance plan as provided in section 428(b)(9)(C)’’. 

6 (5) Section 428J(e) of such Act (20 U.S.C. 

7 1078–10(e)) is amended by adding at the end the 

8 following: ‘‘A loan for which the borrower elected a 

9 special transition assistance plan as provided in sec10 tion 428(b)(9)(C) is not eligible for repayment under 

11 this section.’’. 

12 SEC. 6. SUPPORT FOR ACADEMIC CREDIT TRANSFERS. 

13 Subpart 2 of part A of title IV of the Higher Edu14 cation Act of 1965 (20 U.S.C. 1070a–11 et seq.) is 

15 amended— 

16 (1) by redesignating section 407E as section 

17 406E; and 

18 (2) by adding at the end the following: 

19 ‘‘CHAPTER 4—SUPPORT FOR ACADEMIC 

20 CREDIT TRANSFERS 

21 ‘‘SEC. 407A. PURPOSE. 

22 ‘‘It is the purpose of this chapter to enhance opportu23 nities of students to transfer between institutions in order 

24 to complete baccalaureate degrees by supporting the devel-
22 

•S 2243 IS

1 opment and implementation of articulation and guaran2 teed transfer agreements. 

3 ‘‘SEC. 407B. ACTIVITIES. 

4 ‘‘(a) GRANTS AUTHORIZED.—From the amounts ap5 propriated under section 407C, the Secretary shall award 

6 grants to a partnership that includes 2 or more institu7 tions of higher education, at least 1 of which offers a bac8 calaureate or postbaccalaureate degree. 

9 ‘‘(b) USE OF FUNDS.—Grants awarded under this 

10 part shall be used for— 

11 ‘‘(1) the development of policies to promote the 

12 transfer of academic credits between institutions and 

13 to expand articulation and guaranteed transfer 

14 agreements; 

15 ‘‘(2) support services to students participating 

16 in the program, such as tutoring, mentoring, and 

17 academic and personal counseling, as well as any 

18 service that facilitates the transition of students be19 tween the partner institutions; 

20 ‘‘(3) academic program enhancements at a com21 munity or technical college that result in increasing 

22 the quality of the program offered and the number 

23 of student participants in the dual degree program 

24 offered in conjunction with a baccalaureate degree25 granting institution; and 
23 

•S 2243 IS

1 ‘‘(4) programs to identify barriers that inhibit 

2 student transfers. 

3 ‘‘(c) APPLICATIONS.—Any partnership that desires to 

4 obtain a grant under this section shall submit to the Sec5 retary an application at such time, in such manner, and 

6 containing such information or assurances as the Sec7 retary may require. 

8 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

9 such regulations as may be necessary to carry out this 

10 section. 

11 ‘‘SEC. 407C. AUTHORIZATION OF APPROPRIATIONS. 

12 ‘‘There are authorized to be appropriated 

13 $70,000,000 to carry out this chapter for fiscal year 2007 

14 and such sums as may be necessary for each of the 3 suc15 ceeding fiscal years.’’. 

16 SEC. 7. FINANCIAL AID ADMINISTRATOR DISCRETION. 

17 Section 479A(a) of the Higher Education Act of 

18 1965 (20 U.S.C. 1087tt(a)) is amended— 

19 (1) by inserting ‘‘as described in paragraph 

20 (1)’’ after ‘‘on the basis of adequate documenta21 tion’’; and 

22 (2) by inserting ‘‘on a case-by-case basis to’’ 

23 after ‘‘on a case-by-case basis to the cost of attend24 ance or’’. 
24 

•S 2243 IS

1 SEC. 8. PREVENTION OF EXCESSIVE DEBT. 

2 Section 479A(c) of the Higher Education Act of 1965 

3 (20 U.S.C. 1087tt(c)) is amended— 

4 (1) by inserting ‘‘or on a program, class-year, 

5 or institution-wide basis’’ after ‘‘On a case-by-case 

6 basis’’; and 

7 (2) by adding at the end the following new sen8 tences: ‘‘An institution may not refuse to certify, or 

9 reduce the amount certified for, a loan under part 

10 B in order to require the student to borrow a loan 

11 under part D if the student has remaining loan eligi12 bility under part B. An institution that refuses or 

13 reduces a certification under this subsection may 

14 subsequently certify or increase the amount certified, 

15 subject to the remaining loan eligibility of the stu16 dent borrower.’’. 

Æ