II 

109TH CONGRESS 

2D SESSION S. 3528 

To provide higher education assistance for nontraditional students, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 15, 2006 

Mrs. CLINTON (for herself and Mr. DAYTON) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To provide higher education assistance for nontraditional 

students, 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; TABLE OF CONTENTS. 

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

5 ‘‘Nontraditional Student Success Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—FINANCIAL PROVISIONS 

Sec. 101. Federal Pell Grants. 

Sec. 102. Income protection allowance revised tables. 


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Sec. 103. Exclusion of the earned income tax credit (EITC) from financial aid 

determinations. 

Sec. 104. Nontraditional Students Demonstration Program. 

TITLE II—SUPPORT SERVICES 

Sec. 201. Strengthening institutions. 

Sec. 202. Grants to increase completion by improving remedial education. 

Sec. 203. Federal Trio Programs. 

Sec. 204. Student support services. 

Sec. 205. Educational opportunity centers. 

Sec. 206. Early intervention and college awareness program. 

Sec. 207. GEAR UP cohort requirement. 

Sec. 208. Early intervention. 

Sec. 209. Authorization of appropriations. 

Sec. 210. Child Care Access Means Parents in School program. 

Sec. 211. Increased awareness of financial aid availability. 

Sec. 212. Hispanic-serving institutions. 

Sec. 213. Fund for the improvement of postsecondary education. 

Sec. 214. Amendments to special programs for students whose families are engaged in migrant and seasonal farmwork. 

TITLE III—LIFETIME LEARNING CREDIT 

Sec. 301. Improvement of lifetime learning credit. 

Sec. 302. Refundability of lifetime learning credit. 

Sec. 303. Advance payment of lifetime learning credit. 

1 TITLE I—FINANCIAL 

2 PROVISIONS 

3 SEC. 101. FEDERAL PELL GRANTS. 

4 (a) AUTHORIZATION AND APPROPRIATION OF FUNDS

5 FOR FEDERAL PELL GRANTS.—There are authorized to 

6 be appropriated and there are appropriated, out of any 

7 money in the Treasury not otherwise appropriated for the 

8 fiscal year ending September 30, 2006, for carrying out 

9 subpart 1 of part A of title IV of the Higher Education 

10 Act of 1965 (20 U.S.C. 1070a), $14,515,000,000. 

11 (b) AUTHORIZATION AMOUNT AND MAXIMUM FED12 ERAL PELL GRANT.—Section 401(b) of the Higher Edu13 cation Act of 1965 (20 U.S.C. 1070a(b)) is amended— 


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1 (1) in paragraph (2)(A), by striking clauses (i) 

2 through (v) and inserting the following: 

3 ‘‘(i) $8,600 for academic year 2006–2007; 

4 ‘‘(ii) $9,600 for academic year 2007–2008; 

5 ‘‘(iii) $10,600 for academic year 2008–2009; 

6 ‘‘(iv) $11,600 for academic year 2009–2010; 

7 and 

8 ‘‘(v) $12,600 for academic year 2010–2011,’’; 

9 and 

10 (2) in paragraph (3)— 

11 (A) in subparagraph (A), by striking ‘‘ap12 propriation Act’’ and inserting ‘‘appropriation 

13 Act or subparagraph (C)’’; and 

14 (B) by adding at the end the following: 

15 ‘‘(C) The maximum Federal Pell Grant for which a 

16 student shall be eligible during academic year 2006–2007 

17 shall be $4,500, less an amount equal to the amount deter18 mined to be the expected family contribution with respect 

19 to the student for that year.’’. 

20 (c) STUDENTS WITH LOW FAMILY INCOMES.—Sec21 tion 401(b)(2) of the Higher Education Act of 1965 (20 

22 U.S.C. 1070a(b)(2)) is amended further by adding at the 

23 end the following: 

24 ‘‘(C) In the case of a student with a negative expected 

25 family contribution equal to or less than ¥$750, a posiVerDate Aug 31 2005 06:53 Jun 16, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3528.IS S3528

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1 tive amount corresponding to the negative expected family 

2 contribution amount shall be added to the maximum basic 

3 grant for which the student is qualified, except that in 

4 no case shall the amount of the basic grant exceed the 

5 amount permitted under paragraph (4).’’. 

6 (d) TWO PELL GRANTS IN A SINGLE AWARD

7 YEAR.—Section 401(b)(6)(A) of the Higher Education 

8 Act of 1965 (20 U.S.C. 1070a(b)(6)(A)) is amended to 

9 read as follows: 

10 ‘‘(6)(A) The Secretary shall allow a student to receive 

11 2 Federal Pell grants during a single award year, if— 

12 ‘‘(i) the student is enrolled full-time in a certifi13 cate or degree program of study at an eligible insti14 tution; and 

15 ‘‘(ii) the student completes course work toward 

16 completion of a certificate or an associate or bacca17 laureate degree that exceeds the requirements for a 

18 full academic year as defined by the institution.’’. 

19 SEC. 102. INCOME PROTECTION ALLOWANCE REVISED TA20 BLES. 

21 Section 478(b) of the Higher Education Act of 1965 

22 (20 U.S.C. 1087rr(b)) is amended to read as follows: 

23 ‘‘(b) INCOME PROTECTION ALLOWANCE.— 

24 ‘‘(1) REVISED TABLES.—For each academic 

25 year after academic year 1993–1994, the Secretary 


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1 shall publish in the Federal Register a revised table 

2 of income protection allowances for the purpose of 

3 sections 475(c)(4) and 477(b)(4). The revised table 

4 for section 475(c)(4) shall be developed by increas5 ing each of the dollar amounts contained in the table 

6 in such section by a percentage equal to the esti7 mated percentage increase in the Consumer Price 

8 Index (as determined by the Secretary) between De9 cember 1992 and the December next preceding the 

10 beginning of such academic year. The revised table 

11 for section 477(b)(4) shall be developed by using a 

12 3-year average of the median expenses for a family 

13 of 4 based on the Consumer Expenditure Survey 

14 data, adjusted for current dollars, calculated for the 

15 lower living level. The results for both tables shall be 

16 rounded to the nearest $10. 

17 ‘‘(2) REVISED AMOUNTS.—For each academic 

18 year after academic year 2006–2007, the Secretary 

19 shall publish in the Federal Register a revised in20 come protection allowance for the purpose of section 

21 476(b)(1)(A)(iv)(I). Such revised allowance shall be 

22 developed by increasing the dollar amount contained 

23 in such section by a percentage equal to the esti24 mated percentage increase in the Consumer Expend25 iture Survey (as determined by the Secretary) beVerDate Aug 31 2005 06:53 Jun 16, 2006 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3528.IS S3528

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1 tween December 2005 and the December next pre2 ceding the beginning of such academic year, and 

3 rounding the result to the nearest $10.’’. 

4 SEC. 103. EXCLUSION OF THE EARNED INCOME TAX CREDIT 

5 (EITC) FROM FINANCIAL AID DETERMINA6 TIONS. 

7 Section 480(b) of the Higher Education Act of 1965 

8 (20 U.S.C. 1087vv(b)) is amended— 

9 (1) by striking paragraph (8); and 

10 (2) by redesignating paragraphs (9) through 

11 (14) as paragraphs (8) through (13), respectively. 

12 SEC. 104. NONTRADITIONAL STUDENTS DEMONSTRATION 

13 PROGRAM. 

14 Title IV of the Higher Education Act of 1965 (20 

15 U.S.C. 1070 et seq.) is amended by adding at the end 

16 the following: 

17 ‘‘PART I—NONTRADITIONAL STUDENTS 

18 DEMONSTRATION PROGRAM 

19 ‘‘SEC. 499. NONTRADITIONAL STUDENTS DEMONSTRATION 

20 PROGRAM. 

21 ‘‘(a) PURPOSE.—It is the purpose of this section— 

22 ‘‘(1) to allow demonstration programs that are 

23 strictly monitored by the Department to test the ef24 fectiveness of providing expanded financial assist25 ance under this title to less than half-time students 


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1 for not more than 3 terms over the duration of the 

2 students’ course of study, and to students in com3 pressed, modular, or other alternative schedules; 

4 ‘‘(2) to increase graduation rates of nontradi5 tional students by enabling the nontraditional stu6 dents to stay continuously enrolled during periods 

7 when the nontraditional students must temporarily 

8 attend college less than half-time; and 

9 ‘‘(3) to increase graduation rates of nontradi10 tional students by enabling the nontraditional stu11 dents to enroll in programs with compressed, mod12 ular, or other alternative schedules that allow the 

13 nontraditional students to better balance work, fam14 ily, and school. 

15 ‘‘(b) DEMONSTRATION PROGRAM AUTHORIZED.— 

16 ‘‘(1) IN GENERAL.—In accordance with the pro17 visions of subsection (d), the Secretary is authorized 

18 to select institutions of higher education, systems of 

19 institutions of higher education, or consortia of insti20 tutions of higher education for voluntary participa21 tion in the Nontraditional Students Demonstration 

22 Program. Such program shall provide participating 

23 institutions, consortia, or systems with waivers, as 

24 described in paragraph (2), that provide the ability 

25 to offer expanded financial assistance— 


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1 ‘‘(A) to less than half-time students who 

2 have completed not less than 1 term of 

3 coursework, for not more than 3 terms over the 

4 duration of the students’ course of study; and 

5 ‘‘(B) to students enrolled in programs with 

6 compressed, modular, or other alternative 

7 schedules. 

8 ‘‘(2) WAIVERS.— 

9 ‘‘(A) LESS THAN HALF-TIME STUDENTS.— 

10 The Secretary is authorized to waive, for any 

11 institution of higher education, system of insti12 tutions of higher education, or consortium of in13 stitutions of higher education participating in 

14 the Nontraditional Students Demonstration 

15 Program, the requirements of section 472 that 

16 relate to limiting the definition of the cost of at17 tendance for less than half-time students, espe18 cially paragraphs (2) and (4) of such section, 

19 with the goal of allowing the institution, system, 

20 or consortium to use the same definition of the 

21 costs of attendance for less than half-time stu22 dents as is used for students attending at least 

23 half-time. 

24 ‘‘(B) COMPRESSED, MODULAR, OR OTHER

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1 thorized to waive for any institution of higher 

2 education, system of institutions of higher edu3 cation, or consortium of institutions of higher 

4 education participating in the Nontraditional 

5 Students Demonstration Program, the require6 ments of subsection (a) or (b)(1) of section 

7 481, except that no program shall be considered 

8 an eligible program under section 481 unless 

9 the program— 

10 ‘‘(i) offers at least 300 clock hours of 

11 instruction, 8 semester hours, or 12 quar12 ter hours, offered during a minimum of 10 

13 weeks; and 

14 ‘‘(ii) is articulated with a certificate or 

15 degree program of not less than 1 year in 

16 length. 

17 ‘‘(3) ELIGIBLE APPLICANTS.— 

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

19 provided in subparagraph (B), an institution of 

20 higher education, a system of institutions of 

21 higher education, or a consortium of institu22 tions of higher education shall be eligible to 

23 participate in the demonstration program au24 thorized under this section only if the institu25 tion, each institution of higher education in the 


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1 system, or each institution of higher education 

2 participating in the consortium, respectively— 

3 ‘‘(i) is eligible to participate in pro4 grams under this title; and 

5 ‘‘(ii) provides a program for which the 

6 institution of higher education awards an 

7 associate or bachelor’s degree. 

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

9 higher education described in section 

10 102(a)(1)(C) shall not be eligible to participate 

11 in the demonstration program authorized under 

12 this section. 

13 ‘‘(c) APPLICATION.— 

14 ‘‘(1) IN GENERAL.—Each institution, system, 

15 or consortium desiring to participate in a dem16 onstration program under this section shall submit 

17 an application to the Secretary at such time and in 

18 such manner as the Secretary may require. An insti19 tution, system, or consortium may apply for a waiver 

20 of a provision described in subsection (b)(2) (A) or 

21 (B), or both. 

22 ‘‘(2) CONTENTS.—Each such application shall 

23 include— 

24 ‘‘(A) a description of programs that have 

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1 traditional students, which will be carried out in 

2 support of the waiver, including programs re3 lated to student financial aid counseling, aca4 demic support services, study skills courses, re5 medial courses, English as a Second Language 

6 courses, individual mentoring, skills assessment, 

7 addressing child care needs, and creating flexi8 ble course schedules; 

9 ‘‘(B) a description of the statutory and 

10 regulatory requirements described in subsection 

11 (b)(2) for which a waiver is sought and the rea12 sons for which the waiver is sought; 

13 ‘‘(C) in the case of an institution, a sys14 tem, or a consortium applying for a waiver of 

15 a provision described in subsection (b)(2)(A), a 

16 description of the less than half-time students 

17 to whom such expanded financial assistance will 

18 be offered; 

19 ‘‘(D) in the case of an institution, a sys20 tem, or a consortium applying for a waiver of 

21 a provision described in subsection (b)(2)(B), a 

22 description of the programs with compressed, 

23 modular, or other alternative schedules in which 

24 students in the demonstration program will be 

25 enrolled; 


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1 ‘‘(E) an assurance that the institution, sys2 tem, or consortium will offer full cooperation 

3 with the ongoing evaluations of the demonstra4 tion program provided for in this section; and 

5 ‘‘(F) such other information as the Sec6 retary may require. 

7 ‘‘(d) SELECTION.— 

8 ‘‘(1) IN GENERAL.—For the first 2 years of the 

9 demonstration program the Secretary is authorized 

10 to select for participation in the program not more 

11 than an aggregate of 50 institutions of higher edu12 cation, systems of institutions of higher education, 

13 or consortia of institutions of higher education. For 

14 the third year of the demonstration program author15 ized under this section, not more than an aggregate 

16 of 70 institutions, systems, or consortia, may partici17 pate in the demonstration program, if the Secretary 

18 determines that such expansion is warranted based 

19 on the evaluations and oversight conducted in ac20 cordance with subsections (f) and (g). 

21 ‘‘(2) CONSIDERATIONS.—In selecting institu22 tions, systems, or consortia to participate in the 

23 demonstration program in the first or succeeding 

24 years of the demonstration program, the Secretary 

25 shall take into account— 


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1 ‘‘(A) the number and quality of applica2 tions received; 

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

4 and monitor the participation of each institu5 tion, system, or consortium; 

6 ‘‘(C) an institution’s, system’s, or consor7 tium’s— 

8 ‘‘(i) financial responsibility; 

9 ‘‘(ii) administrative capability; 

10 ‘‘(iii) number of matriculated students 

11 enrolled less than half-time, or program or 

12 programs to be offered with compressed, 

13 modular, or other alternative schedules; 

14 and 

15 ‘‘(iv) ability to offer programs that 

16 have characteristics known to be effective 

17 for nontraditional students, including pro18 grams that provide student financial aid 

19 counseling, academic support services, 

20 study skills courses, remedial courses, 

21 English as a Second Language courses, in22 dividual mentoring, and skills assessment, 

23 programs that address child care needs, 

24 and programs that create flexible course 

25 schedules; and 


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1 ‘‘(D) ensuring the participation of a di2 verse group of institutions, systems, and con3 sortia with respect to size, mission, and geo4 graphic distribution. 

5 ‘‘(e) NOTIFICATION.—The Secretary shall make 

6 available to the public and to the Committee on Health, 

7 Education, Labor, and Pensions of the Senate and the 

8 Committee on Education and the Workforce of the House 

9 of Representatives a list of institutions, systems, or con10 sortia selected to participate in the demonstration pro11 gram authorized by this section. Such notice shall include 

12 a listing of the specific statutory and regulatory require13 ments waived for each institution, system, or consortium 

14 and a description of the students served or the types of 

15 alternative schedule courses offered. 

16 ‘‘(f) EVALUATIONS AND REPORTS.— 

17 ‘‘(1) EVALUATIONS.—The Secretary shall evalu18 ate the demonstration program authorized under 

19 this section on an annual basis. Such evaluations 

20 specifically shall review— 

21 ‘‘(A) the extent to which each institution, 

22 system, or consortium participating in the dem23 onstration program has met the goals set forth 

24 in its application to the Secretary, including the 

25 measures of program quality assurance; 


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1 ‘‘(B) the number and types of students 

2 participating in the less than half-time dem3 onstration programs and in the alternative 

4 schedule programs, including the progress of 

5 participating students toward recognized certifi6 cates or degrees and the extent to which partici7 pation in such programs increased; 

8 ‘‘(C) issues related to student financial as9 sistance for less than half-time enrollment; 

10 ‘‘(D) issues related to student financial as11 sistance for students in compressed, modular, 

12 or other alternative schedule programs; and 

13 ‘‘(E) the extent to which persistence or 

14 completion increased or decreased for students 

15 in the demonstration program as compared to 

16 a comparable group of students. 

17 ‘‘(2) REPORTS.—Not later than 30 months 

18 after the first waiver is authorized under this sec19 tion, the Secretary shall report to the Committee on 

20 Health, Education, Labor, and Pensions of the Sen21 ate and the Committee on Education and the Work22 force of the House of Representatives with respect 

23 to— 

24 ‘‘(A) the evaluations of the demonstration 

25 program authorized under this section; and 


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1 ‘‘(B) any proposed statutory changes de2 signed to enhance persistence and completion 

3 for students. 

4 ‘‘(g) OVERSIGHT.—In conducting the demonstration 

5 program authorized under this section, the Secretary 

6 shall, on a continuing basis— 

7 ‘‘(1) ensure the compliance of institutions, sys8 tems, and consortia participating in the demonstra9 tion program with the requirements of this title 

10 (other than the sections and regulations that are 

11 waived under subsection (b)(2)); and 

12 ‘‘(2) provide technical assistance.’’. 

13 TITLE II—SUPPORT SERVICES 

14 SEC. 201. STRENGTHENING INSTITUTIONS. 

15 Section 311(c) of the Higher Education Act of 1965 

16 (20 U.S.C. 1057(c)) is amended— 

17 (1) by redesignating paragraph (12) as para18 graph (13); and 

19 (2) by inserting after paragraph (11) the fol20 lowing: 

21 ‘‘(12) The introduction of reforms in remedial 

22 education, including English language instruction, to 

23 customize remedial courses to student goals and help 

24 students move rapidly from remedial courses into 

25 core courses and through program completion.’’. 


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1 SEC. 202. GRANTS TO INCREASE COMPLETION BY IMPROV2 ING REMEDIAL EDUCATION. 

3 Part A of title III of the Higher Education Act of 

4 1965 (20 U.S.C. 1057 et seq.) is amended by adding at 

5 the end the following: 

6 ‘‘SEC. 318. GRANTS TO INCREASE COMPLETION BY IMPROV7 ING REMEDIAL EDUCATION. 

8 ‘‘(a) AUTHORIZATION OF PROGRAM.—From amounts 

9 appropriated under subsection (k), the Secretary shall 

10 award grants, on a competitive basis, to eligible institu11 tions for the purposes of improving remedial education, 

12 including English language instruction, to customize re13 medial courses to student goals and help students move 

14 rapidly from remedial courses into core program courses 

15 and through program completion. 

16 ‘‘(b) DEFINITION OF ELIGIBLE INSTITUTION.—In 

17 this section, the term ‘eligible institution’ means an insti18 tution of higher education (as defined in section 101(a)) 

19 in which not less than 35 percent of the institution’s enter20 ing first-year students are enrolled in remedial courses to 

21 improve reading, writing, or mathematics. 

22 ‘‘(c) APPLICATION.—An eligible institution seeking a 

23 grant under this section shall submit an application to the 

24 Secretary at such time, in such manner, and containing 

25 such information as the Secretary may require. 


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1 ‘‘(d) PRIORITY FOR REPLICATION OF PROVEN PRAC2 TICES.—The Secretary shall give priority to applications 

3 that propose to replicate practices that have proven effec4 tive with adults. 

5 ‘‘(e) PEER REVIEW.—The Secretary shall convene a 

6 peer review process to review applications for grants under 

7 this section and to make recommendations to the Sec8 retary regarding the selection of grantees. 

9 ‘‘(f) MANDATORY ACTIVITY.—An eligible institution 

10 that receives a grant under this section shall use the grant 

11 funds to create bridge programs that customize remedial 

12 adult education, English as a Second Language, or reme13 dial education curricula to the content of the certificate 

14 or degree programs or clusters of programs in which reme15 dial education students enroll. 

16 ‘‘(g) PERMISSIBLE ACTIVITIES.—An eligible institu17 tion that receives a grant under this section may use the 

18 grant funds to carry out the following: 

19 ‘‘(1) Designing and implementing innovative 

20 ways to improve retention in and completion of re21 medial education courses, such as enrolling students 

22 in cohorts, providing counseling, and giving small, 

23 material incentives for attendance and performance. 


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1 ‘‘(2) Redesignating class schedules to meet the 

2 needs of working adults, through modular, com3 pressed, repeated, or other alternative schedules. 

4 ‘‘(3) Improving the quality of teaching in reme5 dial courses through professional development, re6 classification of such teaching positions, or other 

7 means the eligible institution determines appro8 priate. 

9 ‘‘(4) Any other activities the eligible institution 

10 and the Secretary determine will promote retention 

11 of and completion by students attending eligible in12 stitutions. 

13 ‘‘(h) GRANT PERIOD.—Grants made under this sec14 tion shall be for a period of not less than 36 months and 

15 not more than 60 months. 

16 ‘‘(i) TECHNICAL ASSISTANCE.—The Secretary shall 

17 enter into a contract with a private entity to provide such 

18 technical assistance to grantees under this section as the 

19 Secretary determines appropriate. 

20 ‘‘(j) EVALUATION.—The Secretary shall conduct an 

21 evaluation of program impacts under the demonstration 

22 program, and shall disseminate to the public the findings 

23 from the evaluation and information on best practices. 

24 The Secretary is encouraged to partner with other 

25 funders, such as private foundations, to allow for use of 


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1 a random assignment evaluation in at least one of the 

2 demonstration sites. 

3 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 $50,000,000 for fiscal year 2007 and each of the 5 suc6 ceeding fiscal years, of which an aggregate of not more 

7 than 5 percent may be used to carry out subsections (i) 

8 and (j).’’. 

9 SEC. 203. FEDERAL TRIO PROGRAMS. 

10 Section 402A of the Higher Education Act of 1965 

11 (20 U.S.C. 1070a–11) is amended— 

12 (1) in subsection (b)— 

13 (A) in paragraph (3)— 

14 (i) in subparagraph (A), by striking 

15 ‘‘$170,000’’ and inserting ‘‘$190,000’’; 

16 (ii) in subparagraph (B), by striking 

17 ‘‘$180,000’’ and inserting ‘‘$200,000’’; 

18 and 

19 (iii) in subparagraph (C), by striking 

20 ‘‘$190,000’’ and inserting ‘‘$220,000’’; 

21 and 

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

23 ‘‘(4) INCREASES.— 

24 ‘‘(A) IN GENERAL.—The amount of any 

25 funding increase described in subparagraph (B) 


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1 shall be used in part to help first year students 

2 by assigning counselors to the students so that 

3 there is consistency and continuity in the aca4 demic and career advice the students receive. 

5 ‘‘(B) FUNDING INCREASES.—The funding 

6 increase referred to in subparagraph (A) is— 

7 ‘‘(i) in the case of a program author8 ized by section 402D, the amount by which 

9 the individual grant exceeds $170,000; and 

10 ‘‘(ii) in the case of a program author11 ized by section 402F, the amount by which 

12 the individual grant exceeds $180,000.’’; 

13 and 

14 (2) in subsection (f), by striking the first sen15 tence and inserting the following: ‘‘For the purpose 

16 of making grants and contracts under this chapter, 

17 there are authorized to be appropriated 

18 $1,250,000,000 for fiscal year 2007 and such sums 

19 as may be necessary for each of the 5 succeeding fis20 cal years.’’. 

21 SEC. 204. STUDENT SUPPORT SERVICES. 

22 Section 402D(b)(2) of the Higher Education Act of 

23 1965 (20 U.S.C. 1070a–14(b)(2)) is amended to read as 

24 follows: 


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1 ‘‘(2) consistent, individualized personal, career, 

2 and academic counseling provided by assigned coun3 selors;’’. 

4 SEC. 205. EDUCATIONAL OPPORTUNITY CENTERS. 

5 Section 402F(b)(6) of the Higher Education Act of 

6 1965 (20 U.S.C. 1070a–16(b)(6)) is amended to read as 

7 follows: 

8 ‘‘(6) consistent, individualized personal, career, 

9 and academic counseling provided by an assigned 

10 counselor during the admissions process that may be 

11 continued throughout students’ undergraduate en12 rollment;’’. 

13 SEC. 206. EARLY INTERVENTION AND COLLEGE AWARE14 NESS PROGRAM. 

15 Section 404A(b) of the Higher Education Act of 

16 1965 (20 U.S.C. 1070a–21(b)) is amended— 

17 (1) in paragraph (1), by inserting ‘‘6 year’’ 

18 after ‘‘shall make’’; 

19 (2) in paragraph (2), by amending subpara20 graph (B) to read as follows: 

21 ‘‘(B) ensure that students served under 

22 this chapter on the day before the date of en23 actment of the Nontraditional Student Success 

24 Act continue to receive assistance through the 

25 completion of secondary school and at least 


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1 through the first year of attendance at a post2 secondary education institution.’’; and 

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

4 ‘‘(3) CURRENT GRANTEES.—An eligible entity 

5 that has received an award under this section, has 

6 performed successfully, and still has need for an 

7 award may apply for an additional award under this 

8 section.’’. 

9 SEC. 207. GEAR UP COHORT REQUIREMENT. 

10 Section 404B(g)(1)(B) of the Higher Education Act 

11 of 1965 (20 U.S.C. 1070a–22(g)(1)(B)) is amended to 

12 read as follows: 

13 ‘‘(B) ensure that the services are provided 

14 through the 12th grade and through the first 

15 year of attendance at a postsecondary education 

16 institution to students in the participating 

17 grade level.’’. 

18 SEC. 208. EARLY INTERVENTION. 

19 Section 404D of the Higher Education Act of 1965 

20 (20 U.S.C. 1070a–24) is amended— 

21 (1) in subsection (b)(2)(A), by amending the 

22 matter preceding clause (i) to read as follows: 

23 ‘‘(A) Providing eligible students in pre24 school through grade 12 and through the first 

25 year of attendance at a postsecondary education 


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1 institution with a continuing system of men2 toring and advising that—’’; and 

3 (2) in subsection (c), by amending the matter 

4 preceding paragraph (1) to read as follows: 

5 ‘‘(c) PRIORITY STUDENTS.—For eligible entities not 

6 using a cohort approach, the eligible entity shall treat as 

7 priority students any student in the preschool through 

8 grade 12 and through the first year of attendance at a 

9 postsecondary education institution who is eligible—’’. 

10 SEC. 209. AUTHORIZATION OF APPROPRIATIONS. 

11 Section 404H of the Higher Education Act of 1965 

12 (20 U.S.C. 1070a–28) is amended by striking 

13 ‘‘$200,000,000 for fiscal year 1999 and such sums as may 

14 be necessary for each of the 4 succeeding fiscal years’’ and 

15 inserting ‘‘$500,000,000 for fiscal year 2007 and such 

16 sums as may be necessary for each of the 5 succeeding 

17 fiscal years’’. 

18 SEC. 210. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL 

19 PROGRAM. 

20 Section 419N(g) of the Higher Education Act of 

21 1965 (20 U.S.C. 1070e(g)) is amended by striking 

22 ‘‘$45,000,000 for fiscal year 1999’’ and inserting 

23 ‘‘$75,000,000 for fiscal year 2007’’. 


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1 SEC. 211. INCREASED AWARENESS OF FINANCIAL AID 

2 AVAILABILITY. 

3 Part G of title IV of the Higher Education Act of 

4 1965 (20 U.S.C. 1088 et seq.) is amended by adding at 

5 the end the following: 

6 ‘‘SEC. 493C. INCREASED AWARENESS OF FINANCIAL AID 

7 AVAILABILITY. 

8 ‘‘The Secretary, in consultation with the Secretary of 

9 Commerce, the Secretary of Health and Human Services, 

10 and the Secretary of Labor, shall establish a website and 

11 brochures for providing outreach about financial aid and 

12 education tax credits. The outreach shall target employers, 

13 one-stop centers, Head Start centers, and other locations 

14 the Secretary of Education determines appropriate.’’. 

15 SEC. 212. HISPANIC-SERVING INSTITUTIONS. 

16 Section 503(b) of the Higher Education Act of 1965 

17 (20 U.S.C. 1101b(b)) is amended— 

18 (1) by redesignating paragraph (14) as para19 graph (15); and 

20 (2) by inserting after paragraph (13) the fol21 lowing: 

22 ‘‘(14) The introduction of reforms in remedial 

23 education, including English language instruction, to 

24 customize remedial courses to student goals and help 

25 students move rapidly from remedial courses into 

26 core courses and through program completion.’’. 


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1 SEC. 213. FUND FOR THE IMPROVEMENT OF POSTSEC2 ONDARY EDUCATION. 

3 Section 741(a) of the Higher Education Act of 1965 

4 (20 U.S.C. 1138(a)) is amended— 

5 (1) in paragraph (7), by striking ‘‘and’’ after 

6 the semicolon; 

7 (2) in paragraph (8), by striking the period and 

8 inserting ‘‘; and’’; and 

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

10 ‘‘(9) the introduction of reforms in remedial 

11 education, including English language instruction, to 

12 customize remedial courses to student goals and help 

13 students move rapidly from remedial courses into 

14 core courses and through program completion.’’. 

15 SEC. 214. AMENDMENTS TO SPECIAL PROGRAMS FOR STU16 DENTS WHOSE FAMILIES ARE ENGAGED IN 

17 MIGRANT AND SEASONAL FARMWORK. 

18 Section 418A of the Higher Education Act of 1965 

19 (20 U.S.C. 1070d–2) is amended— 

20 (1) in subsection (b)(8), by inserting ‘‘such as 

21 childcare and transportation,’’ after ‘‘supportive 

22 services,’’; and 

23 (2) in subsection (h)— 

24 (A) in paragraph (1), by striking 

25 ‘‘$15,000,000 for fiscal year 1999 and such 

26 sums as may be necessary for each of the 4 


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1 succeeding fiscal years’’ and inserting 

2 ‘‘$75,000,000 for fiscal year 2007 and such 

3 sums as may be necessary for each of the 5 

4 succeeding fiscal years’’; and 

5 (B) in paragraph (2), by striking 

6 ‘‘$5,000,000 for fiscal year 1999 and such 

7 sums as may be necessary for each of the 4 

8 succeeding fiscal years’’ and inserting 

9 ‘‘$75,000,000 for fiscal year 2007 and such 

10 sums as may be necessary for each of the 5 

11 succeeding fiscal years’’. 

12 TITLE III—LIFETIME LEARNING 

13 CREDIT 

14 SEC. 301. IMPROVEMENT OF LIFETIME LEARNING CREDIT. 

15 (a) IN GENERAL.— 

16 (1) INCREASE IN AMOUNT.—Section 25A(c)(1) 

17 of the Internal Revenue Code of 1986 (relating to 

18 lifetime learning credit) is amended— 

19 (A) by striking ‘‘20 percent’’ and inserting 

20 ‘‘50 percent’’, 

21 (B) by striking ‘‘qualified tuition and re22 lated expenses’’ and inserting ‘‘qualified higher 

23 education expenses’’, and 


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1 (C) by striking ‘‘$10,000 ($5,000 in the 

2 case of taxable years beginning before January 

3 1, 2003)’’ and inserting ‘‘$4,000’’. 

4 (2) QUALIFIED HIGHER EDUCATION EX5 PENSES.—Section 25A(f) of such Code (relating to 

6 definitions) is amended by inserting at the end the 

7 following new paragraph: 

8 ‘‘(3) QUALIFIED HIGHER EDUCATION EX9 PENSES.—The term ‘qualified higher education ex10 penses’ means, with respect to any individual de11 scribed in clause (i), (ii), or (iii) of paragraph 

12 (1)(A)— 

13 ‘‘(A) tuition, books, supplies, and equip14 ment required for the enrollment or attendance 

15 at an eligible educational institution, 

16 ‘‘(B) in the case of an individual with spe17 cial needs, expenses for special needs services 

18 which are incurred in connection with such en19 rollment or attendance, 

20 ‘‘(C) expenses for child care which are in21 curred in connection with such enrollment or 

22 attendance, and 

23 ‘‘(D) expenses for food, shelter, and other 

24 living expenses which are incurred during the 

25 period of such enrollment or attendance. 


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1 With respect to expenses described in subparagraph 

2 (D), only the first $250 of such expenses for any 

3 month shall be taken into account.’’. 

4 (3) CONFORMING AMENDMENTS.—Paragraphs 

5 (1), (2), (3), and (4) of section 25A(g) of such Code 

6 are each amended by inserting ‘‘and qualified higher 

7 education expenses’’ after ‘‘qualified tuition and re8 lated expenses’’ each place it appears. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2005. 

12 SEC. 302. REFUNDABILITY OF LIFETIME LEARNING CREDIT. 

13 (a) REFUNDABLE CREDIT.— 

14 (1) IN GENERAL.—Section 25A of the Internal 

15 Revenue Code of 1986 is amended by redesignating 

16 subsection (i) as subsection (j) and by inserting after 

17 subsection (h) the following new subsection: 

18 ‘‘(i) PORTION OF CREDIT REFUNDABLE.— 

19 ‘‘(1) IN GENERAL.—The aggregate credits al20 lowed to a taxpayer under subpart C shall be in21 creased by the amount of the credit allowed under 

22 this section by reason of subsection (a)(2) without 

23 regard to this subsection and the limitation under 

24 section 26(a). 


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1 ‘‘(2) NO DOUBLE BENEFIT.—The amount of 

2 the credit allowed under this subsection shall not be 

3 treated as a credit allowed under this subpart and 

4 shall reduce the amount of the credit otherwise al5 lowable under subsection (a) without regard to sec6 tion 26(a).’’. 

7 (2) CONFORMING AMENDMENT.—Paragraph (2) 

8 of section 1324(b) of title 31, United States Code, 

9 is amended by inserting before the period ‘‘or from 

10 section 25A(i) of such Code’’. 

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

12 this section shall apply to taxable years beginning after 

13 December 31, 2005. 

14 SEC. 303. ADVANCE PAYMENT OF LIFETIME LEARNING 

15 CREDIT. 

16 (a) IN GENERAL.—Chapter 77 of the Internal Rev17 enue Code of 1986 (relating to miscellaneous provisions) 

18 is amended by redesignating section 7528 as section 7529 

19 and inserting after section 7527 the following new section: 

20 ‘‘SEC. 7528. ADVANCE PAYMENT OF LIFETIME LEARNING 

21 CREDIT. 

22 ‘‘(a) GENERAL RULE.—Not later than August 1, 

23 2006, the Secretary shall establish a program for making 

24 payments on behalf of certified individuals to eligible edu25 cational institutions. 


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1 ‘‘(b) LIMITATION ON ADVANCE PAYMENTS DURING

2 ANY TAXABLE YEAR.—The Secretary may make pay3 ments under subsection (a) only to the extent that the 

4 total amount of such payments made on behalf of any indi5 vidual during the taxable year does not exceed an amount 

6 equal to 50 percent of so much of the qualified higher edu7 cation expenses paid with respect to such individual as 

8 does not exceed $4,000 for such year. For purposes of this 

9 section, qualified higher education expenses taken into ac10 count with respect to any individual shall be reduced— 

11 ‘‘(1) by the amount of qualified tuition and re12 lated expenses taken into account under section 

13 25A(b) (if any), and 

14 ‘‘(2) under rules similar to the rules under sec15 tion 25A(g)(2). 

16 ‘‘(c) CERTIFIED INDIVIDUAL.—For purposes of this 

17 section, the term ‘certified individual’ means any indi18 vidual for whom a qualified education costs credit eligi19 bility certificate is in effect. 

20 ‘‘(d) QUALIFIED EDUCATION COSTS CREDIT ELIGI21 BILITY CERTIFICATE.—For purposes of this section, the 

22 term ‘qualified education costs credit eligibility certificate’ 

23 means a written statement that an individual has incurred 

24 costs which are qualified higher education expenses. 

25 ‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 


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1 ‘‘(1) DEFINITIONS.—Any term used in this sec2 tion which is also used in section 25A shall have the 

3 meaning given such term in section 25A. 

4 ‘‘(2) RULES.—Except as otherwise provided in 

5 this section, payments made under subsection (a) 

6 shall be subject to rules similar to the rules of sec7 tion 25A.’’. 

8 (b) COORDINATION OF LIFETIME LEARNING CREDIT

9 WITH ADVANCED PAYMENT.—Section 25A of the Internal 

10 Revenue Code of 1986, as amended by section 302, is 

11 amended by redesignating subsection (j) as subsection (k) 

12 and by inserting after subsection (i) the following new sub13 section: 

14 ‘‘(j) COORDINATION WITH ADVANCE PAYMENT.— 

15 ‘‘(1) RECAPTURE OF EXCESS ADVANCE PAY16 MENTS.— 

17 ‘‘(A) IN GENERAL.—If any payment is 

18 made to an eligible educational institution on 

19 behalf of an individual under section 7528 dur20 ing any calendar year, then the tax imposed by 

21 this chapter on the applicable taxpayer for the 

22 last taxable year beginning in such calendar 

23 year shall be increased by the aggregate 

24 amount of such payments. 


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1 ‘‘(B) APPLICABLE TAXPAYER.—For pur2 poses of subparagraph (A), the applicable tax3 payer is— 

4 ‘‘(i) such individual, or 

5 ‘‘(ii) in the case a taxpayer who is al6 lowed a deduction with respect to such in7 dividual under section 151(c), such tax8 payer. 

9 ‘‘(2) RECONCILIATION OF PAYMENTS AD10 VANCED AND CREDIT ALLOWED.—Any increase in 

11 tax under paragraph (1) shall not be treated as tax 

12 imposed by this chapter for purposes of determining 

13 the amount of any credit (other than the credit al14 lowed by subsection (a)) allowable under this part 

15 and subpart C.’’. 

16 (c) DISCLOSURE OF RETURN INFORMATION FOR

17 PURPOSES OF CARRYING OUT A PROGRAM FOR ADVANCE

18 PAYMENT OF LIFETIME LEARNING CREDIT.— 

19 (1) IN GENERAL.—Subsection (l) of section 

20 6103 of the Internal Revenue Code of 1986 (relating 

21 to disclosure of returns and return information for 

22 purposes other than tax administration) is amended 

23 by adding at the end the following new paragraph: 

24 ‘‘(21) DISCLOSURE OF RETURN INFORMATION

25 FOR PURPOSES OF CARRYING OUT A PROGRAM FOR


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1 ADVANCE PAYMENT OF LIFETIME LEARNING CRED2 IT.—The Secretary may disclose to educational insti3 tutions for any certified individual (as defined in 

4 section 7528(c)) return information with respect to 

5 such certified individual only to the extent necessary 

6 to carry out the program established by section 7528 

7 (relating to advance payment of Lifetime Learning 

8 credit).’’. 

9 (2) PROCEDURES AND RECORDKEEPING RE10 LATED TO DISCLOSURES.—Subsection (p) of such 

11 section is amended— 

12 (A) in paragraph (3)(A) by striking ‘‘or 

13 (18)’’ and inserting ‘‘(18), or (21)’’, and 

14 (B) in paragraph (4) by striking ‘‘or (20)’’ 

15 and inserting ‘‘(20), or (21)’’ each place it ap16 pears. 

17 (3) UNAUTHORIZED INSPECTION OF RETURNS

18 OR RETURN INFORMATION.—Section 

19 7213A(a)(1)(B) of such Code is amended by striking 

20 ‘‘(l)(18) or (n)’’ and inserting ‘‘(l)(18), (l)(19), or 

21 (n)’’. 

22 (d) INFORMATION REPORTING.— 

23 (1) IN GENERAL.—Subpart B of part III of 

24 subchapter A of chapter 61 of the Internal Revenue 

25 Code of 1986 (relating to information concerning 


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•S 3528 IS

1 transactions with other persons) is amended by in2 serting after section 6050T the following new sec3 tion: 

4 ‘‘SEC. 6050U. RETURNS RELATING TO LIFETIME LEARNING 

5 CREDIT. 

6 ‘‘(a) REQUIREMENT OF REPORTING.—Every person 

7 who is entitled to receive payments for any month of any 

8 calendar year under section 7528 (relating to advance pay9 ment of Lifetime Learning credit) with respect to any cer10 tified individual (as defined in section 7528(c)) shall, at 

11 such time as the Secretary may prescribe, make the return 

12 described in subsection (b) with respect to each such indi13 vidual. 

14 ‘‘(b) FORM AND MANNER OF RETURNS.—A return 

15 is described in this subsection if such return— 

16 ‘‘(1) is in such form as the Secretary may pre17 scribe, and 

18 ‘‘(2) contains— 

19 ‘‘(A) the name, address, and TIN of each 

20 individual referred to in subsection (a), 

21 ‘‘(B) the amount entitled to be received for 

22 each year with respect to such individual under 

23 section 7528, and 

24 ‘‘(C) such other information as the Sec25 retary may prescribe. 


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1 ‘‘(c) STATEMENTS TO BE FURNISHED TO INDIVID2 UALS WITH RESPECT TO WHOM INFORMATION IS RE3 QUIRED.—Every person required to make a return under 

4 subsection (a) shall furnish to each individual whose name 

5 is required to be set forth in such return a written state6 ment showing— 

7 ‘‘(1) the name and address of the person re8 quired to make such return and the phone number 

9 of the information contact for such person, and 

10 ‘‘(2) the information required to be shown on 

11 the return with respect to such individual. 

12 The written statement required under the preceding sen13 tence shall be furnished on or before January 31 of the 

14 year following the calendar year for which the return 

15 under subsection (a) is required to be made.’’. 

16 (2) ASSESSABLE PENALTIES.— 

17 (A) Subparagraph (B) of section 

18 6724(d)(1) of such Code (relating to defini19 tions) is amended by redesignating clauses (xii) 

20 through (xviii) as clauses (xiii) through (xiv), 

21 respectively, and by inserting after clause (xi) 

22 the following new clause: 

23 ‘‘(xii) section 6050U (relating to re24 turns relating to Lifetime Learning cred25 it),’’. 


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1 (B) Paragraph (2) of section 6724(d) of 

2 such Code is amended by striking ‘‘or’’ at the 

3 end of subparagraph (AA), by striking the pe4 riod at the end of subparagraph (BB) and in5 serting ‘‘, or’’, and by adding after subpara6 graph (BB) the following new subparagraph: 

7 ‘‘(CC) section 6050U (relating to returns 

8 relating to Lifetime Learning credit).’’. 

9 (e) CLERICAL AMENDMENTS.— 

10 (1) ADVANCE PAYMENT.—The table of sections 

11 for chapter 77 of the Internal Revenue Code of 1986 

12 is amended by adding at the end the following new 

13 item: 

‘‘Sec. 7528. Advance payment of Lifetime Learning credit.’’. 

14 (2) INFORMATION REPORTING.—The table of 

15 sections for subpart B of part III of subchapter A 

16 of chapter 61 of such Code is amended by inserting 

17 after the item relating to section 6050T the fol18 lowing new item: 

‘‘Sec. 6050U. Returns relating to Lifetime Learning credit.’’. 

19 (f) EFFECTIVE DATE.—The amendments made by 

20 this section shall take effect on the date of the enactment 

21 of this Act. 

Æ 


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