IB 

Union Calendar No. 128 

110TH CONGRESS 

1ST SESSION H. R. 2669 

[Report No. 110–210] 

To provide for reconciliation pursuant to section 601 of the concurrent 

resolution on the budget for fiscal year 2008. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2007 

Mr. GEORGE MILLER of California (for himself and Mr. HINOJOSA) introduced the following bill; which was referred to the Committee on Education and Labor 

JUNE 25, 2007 

Additional sponsors: Ms. HIRONO, Mr. HARE, Ms. CLARKE, Ms. WOOLSEY, 

Mrs. DAVIS of California, Mr. SARBANES, Mr. BISHOP of New York, Mr. 

YARMUTH, Ms. SHEA-PORTER, Mr. SCOTT of Virginia, Mr. DAVIS of Illinois, Mr. TIERNEY, Ms. ZOE LOFGREN of California, Mr. WU, Mr. 

ELLISON, Ms. CARSON, Mr. KILDEE, Mr. ENGEL, Mr. VAN HOLLEN, Ms. 

DELAURO, Mr. KUCINICH, Ms. MCCOLLUM of Minnesota, Mr. LEWIS of 

Georgia, Ms. SCHAKOWSKY, Mr. STARK, Ms. MATSUI, Mrs. MALONEY of 

New York, Mr. PRICE of North Carolina, Ms. ESHOO, and Ms. KILPATRICK of Michigan 

JUNE 25, 2007 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 


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[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on June 12, 2007] 

A BILL 

To provide for reconciliation pursuant to section 601 of 

the concurrent resolution on the budget for fiscal year 2008. 

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 to as the 

5 ‘‘College Cost Reduction Act of 2007’’. 

6 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

Sec. 2. References; effective date. 

TITLE I—INVESTING IN STUDENT AID 

PART A—INCREASING THE PURCHASING POWER OF PELL GRANTS

Sec. 101. Mandatory Pell Grant Increases. 

Sec. 102. Support for working students. 

Sec. 103. Simplified needs test and automatic zero improvements. 

Sec. 104. Definitions. 

PART B—MAKING STUDENT LOANS MORE AFFORDABLE

Sec. 111. Interest rate reductions. 

Sec. 112. Increases in loan limits. 

Sec. 113. Reduction of lender special allowance payments. 

Sec. 114. Elimination of exceptional performer status for lenders. 

Sec. 115. Reduction of lender insurance percentage. 

Sec. 116. Guaranty agency collection retention. 

Sec. 117. Unit costs for account maintenance fees. 

Sec. 118. Increased loan fees from lenders. 

Sec. 119. Student loan information. 

Sec. 120. Market-based determination of lender returns. 

PART C—REWARDING SERVICE IN REPAYMENT

Sec. 131. Loan forgiveness for service in areas of national need. 

‘‘Sec. 428K. Loan forgiveness for service in areas of national need. 

Sec. 132. Income-contingent repayment for public sector employees. 


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Sec. 133. Income-based repayment. 

‘‘Sec. 493C. Income-based repayment. 

Sec. 134. Definition of economic hardship. 

Sec. 135. Deferrals. 

Sec. 136. Maximum repayment period. 

Sec. 137. Deferral of loan repayment following active duty. 

‘‘Sec. 484C. Deferral of loan repayment following active duty. 

Sec. 138. Sense of the Congress; report. 

PART D—SUSTAINING THE PERKINS LOAN PROGRAM

Sec. 141. Federal Perkins Loans. 

TITLE II—REDUCING THE COST OF COLLEGE 

Sec. 201. State commitment to affordable college education. 

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

Sec. 202. Consumer information and public accountability in higher education. 

‘‘Sec. 131. Consumer information and public accountability in higher education. 

Sec. 203. Incentives and rewards for low tuition. 

‘‘Sec. 401B. Incentives and rewards for low tuition. 

Sec. 204. Cooperative education rewards for institutions that restrain tuition increases. 

‘‘TITLE VIII—COOPERATIVE EDUCATION REWARDS FOR 

INSTITUTIONS THAT RESTRAIN TUITION INCREASES 

‘‘Sec. 801. Definition of cooperative education. 

‘‘Sec. 802. Authorization of appropriations; reservations. 

‘‘Sec. 803. Grants for cooperative education. 

‘‘Sec. 804. Demonstration and innovation projects; training and resource 

centers; and research. 

TITLE III—ENSURING A HIGHLY QUALIFIED TEACHER IN EVERY 

CLASSROOM 

PART A—TEACH GRANTS

Sec. 301. TEACH Grants. 

‘‘SUBPART 9—TEACH GRANTS

‘‘Sec. 420L. Program established. 

‘‘Sec. 420M. Eligibility; applications. 

‘‘Sec. 420N. Definitions. 

‘‘Sec. 420O. Program period and funding. 

PART B—CENTERS OF EXCELLENCE

Sec. 311. Centers of excellence. 

‘‘PART C—CENTERS OF EXCELLENCE

‘‘Sec. 231. Definitions. 

‘‘Sec. 232. Centers of excellence. 

‘‘Sec. 233. Appropriations. 


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TITLE IV—LEVERAGING FUNDS TO INCREASE COLLEGE ACCESS 

PART A—STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES

AND MINORITY-SERVING INSTITUTIONS

Sec. 401. Investment in Historically Black Colleges and Universities and Minority-Serving Institution. 

‘‘PART I—STRENGTHENING HISTORICALLY BLACK COLLEGES AND

UNIVERSITIES AND OTHER MINORITY-SERVING INSTITUTIONS

‘‘Sec. 499A. Investment in Historically Black Colleges and Universities and 

Other Minority-Serving Institution. 

PART B—COLLEGE ACCESS CHALLENGE GRANTS

Sec. 411. College Access Challenge grants. 

PART C—UPWARD BOUND

Sec. 412. Upward Bound. 

TITLE V—ADDITIONAL PROVISIONS 

Sec. 501. Independent evaluation of distance education programs. 

Sec. 502. Encouraging colleges and universities to ‘‘go green’’. 

1 SEC. 2. REFERENCES; EFFECTIVE DATE. 

2 (a) REFERENCES.—Except as otherwise expressly pro3 vided, whenever in this Act an amendment or repeal is ex4 pressed in terms of an amendment to, or repeal of, a section 

5 or other provision, the reference shall be considered to be 

6 made to a section or other provision of the Higher Edu7 cation Act of 1965 (20 U.S.C. 1001 et seq.). 

8 (b) EFFECTIVE DATE.—Except as otherwise expressly 

9 provided therein, the amendments made by this Act shall 

10 be effective on October 1, 2007. 


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1 TITLE I—INVESTING IN 

2 STUDENT AID 

3 PART A—INCREASING THE PURCHASING POWER 

4 OF PELL GRANTS 

5 SEC. 101. MANDATORY PELL GRANT INCREASES. 

6 (a) EXTENSION OF AUTHORITY.—Section 401(a) (20 

7 U.S.C. 1070a(a)) is amended by striking ‘‘fiscal year 2004’’ 

8 and inserting ‘‘fiscal year 2013’’. 

9 (b) FUNDING FOR INCREASES.—Section 401(b) (20 

10 U.S.C. 1070a(b)) is amended by adding at the end the fol11 lowing new paragraph: 

12 ‘‘(9) ADDITIONAL FUNDS.— 

13 ‘‘(A) IN GENERAL.—There are authorized to 

14 be appropriated, and there are appropriated, to 

15 carry out subparagraph (B) of this paragraph 

16 (in addition to any other amounts appropriated 

17 to carry out this section and out of any money 

18 in the Treasury not otherwise appropriated) the 

19 following amounts: 

20 ‘‘(i) $840,000,000 for fiscal year 2008; 

21 ‘‘(ii) $870,000,000 for fiscal year 2009; 

22 ‘‘(iii) $1,340,000,000 for fiscal year 

23 2010; 

24 ‘‘(iv) $2,280,000,000 for fiscal year 

25 2011; 


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1 ‘‘(v) $2,350,000,000 for fiscal year 

2 2012; 

3 ‘‘(vi) $2,400,000,000 for fiscal year 

4 2013; 

5 ‘‘(vii) $2,450,000,000 for fiscal year 

6 2014; 

7 ‘‘(viii) $2,510,000,000 for fiscal year 

8 2015; 

9 ‘‘(ix) $2,550,000,000 for fiscal year 

10 2016; and 

11 ‘‘(x) $2,570,000,000 for fiscal year 

12 2017. 

13 ‘‘(B) INCREASE IN FEDERAL PELL

14 GRANTS.—The amounts made available pursuant 

15 to subparagraph (A) of this paragraph shall be 

16 used to increase the amount of the maximum 

17 Pell Grant for which a student shall be eligible 

18 during an award year, as specified in the last 

19 enacted appropriation Act applicable to that 

20 award year, by— 

21 ‘‘(i) $200 for each of the award years 

22 2008–2009 and 2009–2010; 

23 ‘‘(ii) $300 for award year 2010–2011; 

24 and 


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1 ‘‘(iii) $500 for award year 2011–2012 

2 and each subsequent award year. 

3 ‘‘(C) USE OF FISCAL YEAR FUNDS FOR

4 AWARD YEARS.—The amounts made available by 

5 subparagraph (A) for any fiscal year shall be 

6 available and remain available for use under 

7 subparagraph (B) for the award year that begins 

8 in such fiscal year.’’. 

9 (c) AUTHORIZED MAXIMUMS.—Section 401(b)(2)(A) 

10 (20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows: 

11 ‘‘(2)(A) The amount of the Federal Pell Grant for a 

12 student eligible under this part shall be— 

13 ‘‘(i) $7,600 for academic year 2008–2009; 

14 ‘‘(ii) $8,600 for academic year 2009–2010; 

15 ‘‘(iii) $9,600 for academic year 2010–2011; 

16 ‘‘(iv) $10,600 for academic year 2011–2012; and 

17 ‘‘(v) $11,600 for academic year 2012–2013, 

18 less an amount equal to the amount determined to be 

19 the expected family contribution with respect to that 

20 student for that year.’’. 

21 (d) TUITION SENSITIVITY.— 

22 (1) AMENDMENT.—Section 401(b) (20 U.S.C. 

23 1070a(b)) is further amended— 

24 (A) by striking paragraph (3); and 


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1 (B) by redesignating paragraphs (4) 

2 through (9) as paragraphs (3) through (8), re3 spectively. 

4 (2) EFFECTIVE DATE.—The amendments made 

5 by paragraph (1) of this subsection are effective on 

6 the date of enactment of this Act. 

7 (e) MULTIPLE GRANTS.— 

8 (1) AMENDMENT.—Paragraph (5) of section 

9 401(b) (as redesignated by subsection (d)(1)(B)) is 

10 amended to read as follows: 

11 ‘‘(5) YEAR-ROUND PELL GRANTS.—The Secretary 

12 is authorized, for students enrolled in a baccalaureate 

13 degree, associate’s degree, or certificate program of 

14 study at an eligible institution, to award such stu15 dents not more than two Pell grants during an award 

16 year to permit such students to accelerate progress to17 ward their degree or certificate objectives by enrolling 

18 in courses for more than 2 semesters, or 3 quarters, 

19 or the equivalent, in a given academic year.’’. 

20 (2) EFFECTIVE DATE.—The amendment made by 

21 paragraph (1) shall be effective July 1, 2009. 

22 (f) ACADEMIC COMPETITIVENESS GRANTS.—Section 

23 401A (as amended by section 8003 of Public Law 109–171) 

24 is amended— 


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1 (1) in subsection (c)(3)(A)(ii), by inserting ‘‘, ex2 cept as part of a secondary school program of study’’ 

3 before the semicolon; 

4 (2) by redesignating subsection (g) as subsection 

5 (h); and 

6 (3) by inserting after subsection (f) the following 

7 new subsection: 

8 ‘‘(g) DETERMINATION OF ACADEMIC YEAR.—Notwith9 standing section 481(a)(2), for the purpose of determining 

10 eligibility for a grant under this section, a student shall 

11 be considered to be enrolled or accepted for enrollment in 

12 the first, second, third, or fourth academic year of a pro13 gram of undergraduate education based on the student’s 

14 class standing, as determined by the institution of higher 

15 education at which the student is enrolled or accepted for 

16 enrollment.’’. 

17 (g) ELIGIBILITY FOR ACADEMIC COMPETITIVENESS

18 GRANTS.—Section 401A is further amended— 

19 (1) in subsection (c)— 

20 (A) by striking ‘‘full–time’’; and 

21 (B) by amending paragraph (1) to read as 

22 follows: 

23 ‘‘(1) is an eligible student under section 484, in24 cluding being enrolled or accepted for enrollment in 

25 a degree, certificate, or other eligible program leading 


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1 to a recognized educational credential at an institu2 tion of higher education;’’; and 

3 (2) in subsection (d), by adding at the end the 

4 following new paragraph: 

5 ‘‘(3) ADJUSTMENT FOR LESS THAN FULL-TIME

6 ENROLLMENT.—A grant awarded under this section 

7 to an eligible student who attends an eligible institu8 tion on a less than full-time (but at least half-time or 

9 more) basis shall be reduced in the same proportion 

10 as would a Federal Pell Grant pursuant to section 

11 401(b)(2)(B).’’. 

12 SEC. 102. SUPPORT FOR WORKING STUDENTS. 

13 (a) DEPENDENT STUDENTS.—Subparagraph (D) of 

14 section 475(g)(2) (20 U.S.C. 1087oo)(g)(2)(D)) is amended 

15 to read as follows: 

16 ‘‘(D) an income protection allowance of the 

17 following amount (or a successor amount pre18 scribed by the Secretary under section 478)— 

19 ‘‘(i) for the 2009–2010 academic year, 

20 $3,750; 

21 ‘‘(ii) for the 2010–2011 academic year, 

22 $4,500; 

23 ‘‘(iii) for the 2011–2012 academic 

24 year, $5,250; and 


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1 ‘‘(iv) for the 2012–2013 academic year, 

2 $6,000;’’. 

3 (b) INDEPENDENT STUDENTS WITHOUT DEPENDENTS

4 OTHER THAN A SPOUSE.—Clause (iv) of section 

5 476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended 

6 to read as follows: 

7 ‘‘(iv) an income protection allowance 

8 of the following amount (or a successor 

9 amount prescribed by the Secretary under 

10 section 478)— 

11 ‘‘(I) for single or separated stu12 dents, or married students where both 

13 are enrolled pursuant to subsection 

14 (a)(2)— 

15 ‘‘(aa) for the 2009–2010 aca16 demic year, $6,690; 

17 ‘‘(bb) for the 2010–2011 aca18 demic year, $7,160; 

19 ‘‘(cc) for the 2011–2012 aca20 demic year, $7,630; and 

21 ‘‘(dd) for the 2012–2013 aca22 demic year, $8,090; and 

23 ‘‘(II) for married students where 1 

24 is enrolled pursuant to subsection 

25 (a)(2)— 


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1 ‘‘(aa) for the 2009–2010 aca2 demic year, $10,720; 

3 ‘‘(bb) for the 2010–2011 aca4 demic year, $11,470; 

5 ‘‘(cc) for the 2011–2012 aca6 demic year, $12,220; and 

7 ‘‘(dd) for the 2012–2013 aca8 demic year, $12,960;’’. 

9 (c) UPDATED TABLES AND AMOUNTS.—Section 478(b) 

10 (20 U.S.C. 1087rr(b)) is amended— 

11 (1) in paragraph (1)— 

12 (A) by striking ‘‘REVISED TABLES.—For 

13 each’’ and inserting ‘‘REVISED TABLES.— 

14 ‘‘(A) IN GENERAL.—For each’’; 

15 (B) in subparagraph (A) (as designated by 

16 subparagraph (A)), in the third sentence— 

17 (i) by striking ‘‘preceding sentence’’ 

18 and inserting ‘‘subparagraph (A)’’; and 

19 (ii) by striking ‘‘For the 2007–2008’’ 

20 and inserting the following: 

21 ‘‘(B) SPECIAL RULE FOR 2007–2008 ACA22 DEMIC YEAR.—For the 2007–2008’’; and 

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

24 ‘‘(C) SPECIAL RULE FOR 2009–2010

25 THROUGH 2012–2013 ACADEMIC YEARS.—For the 


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1 2009–2010 academic year, and for each of the 3 

2 succeeding academic years, the Secretary shall 

3 revise the tables in accordance with this para4 graph, except that, for the table in section 

5 477(b)(4), the Secretary shall revise such table by 

6 increasing the amounts contained in such table 

7 for the preceding academic year by 10 percent.’’; 

8 and 

9 (2) in paragraph (2), by striking ‘‘shall be devel10 oped’’ and all that follows through the period at the 

11 end and inserting ‘‘shall be developed— 

12 ‘‘(A) for academic year 2008–2009, by in13 creasing each of the dollar amounts contained in 

14 such section as such section was in effect on the 

15 day before the date of enactment of the College 

16 Cost Reduction Act of 2007 by a percentage 

17 equal to the estimated percentage increase in the 

18 Consumer Price Index (as defined in section 

19 478(f)) between December 2006 and the Decem20 ber next preceding the beginning of such aca21 demic year, and rounding the result to the near22 est $10; and 

23 ‘‘(B) for each academic year after 2012– 

24 2013, by increasing each of the dollar amounts 

25 contained in such section for academic year 


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1 2012–2013 by a percentage equal to the esti2 mated percentage increase in the Consumer Price 

3 Index (as defined in section 478(f)) between De4 cember 2011 and the December next preceding 

5 the beginning of such academic year, and round6 ing the result to the nearest $10.’’. 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 subsections (a) and (b) shall take effect on October 1, 2008, 

9 and the amendment made by subsection (c) shall take effect 

10 on July 1, 2008. 

11 SEC. 103. SIMPLIFIED NEEDS TEST AND AUTOMATIC ZERO 

12 IMPROVEMENTS. 

13 (a) SIMPLIFIED NEEDS TEST.—Section 479 (20 

14 U.S.C. 1087ss) is amended— 

15 (1) in subsection (b)— 

16 (A) in paragraph (1)(A)(i)— 

17 (i) in subclause (II), by striking ‘‘or’’ 

18 after the semicolon; 

19 (ii) by redesignating subclause (III) as 

20 subclause (IV); 

21 (iii) by inserting after subclause (II) 

22 the following: 

23 ‘‘(III) 1 of whom is a dislocated 

24 worker; or’’; and 


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1 (iv) in subclause (IV) (as redesignated 

2 by clause (ii)), by striking ‘‘12-month’’ and 

3 inserting ‘‘24-month’’; and 

4 (B) in paragraph (1)(B)(i)— 

5 (i) in subclause (II), by striking ‘‘or’’ 

6 after the semicolon; 

7 (ii) by redesignating subclause (III) as 

8 subclause (IV); 

9 (iii) by inserting after subclause (II) 

10 the following: 

11 ‘‘(III) 1 of whom is a dislocated 

12 worker; or’’; and 

13 (iv) in subclause (IV) (as redesignated 

14 by clause (ii)), by striking ‘‘12-month’’ and 

15 inserting ‘‘24-month’’; 

16 (2) in subsection (c)— 

17 (A) in paragraph (1)— 

18 (i) in subparagraph (A)— 

19 (I) in clause (ii), by striking ‘‘or’’ 

20 after the semicolon; 

21 (II) by redesignating clause (iii) 

22 as clause (iv); 

23 (III) by inserting after clause (ii) 

24 the following: 


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1 ‘‘(iii) 1 of whom is a dislocated work2 er; or’’; and 

3 (IV) in clause (iv) (as redesig4 nated by subclause (II)), by striking 

5 ‘‘12-month’’ and inserting ‘‘24-month’’; 

6 and 

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

8 ‘‘$20,000’’ and inserting ‘‘$30,000’’; and 

9 (B) in paragraph (2)— 

10 (i) in subparagraph (A)— 

11 (I) in clause (ii), by striking ‘‘or’’ 

12 after the semicolon; 

13 (II) by redesignating clause (iii) 

14 as clause (iv); 

15 (III) by inserting after clause (ii) 

16 the following: 

17 ‘‘(iii) is a dislocated worker; or’’; and 

18 (IV) in clause (iv) (as redesig19 nated by subclause (II)), by striking 

20 ‘‘12-month’’ and inserting ‘‘24-month’’; 

21 and 

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

23 ‘‘$20,000’’ and inserting ‘‘$30,000’’; and 

24 (C) in the flush matter following paragraph 

25 (2)(B), by adding at the end the following: ‘‘The 


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1 Secretary shall annually adjust the income level 

2 necessary to qualify an applicant for the zero ex3 pected family contribution. The income level 

4 shall be adjusted according to increases in the 

5 Consumer Price Index, as defined in section 

6 478(f).’’; and 

7 (3) in subsection (d)— 

8 (A) by redesignating paragraphs (1) 

9 through (6) as subparagraphs (A) through (F), 

10 respectively and moving the margins of such sub11 paragraphs 2 ems to the right; 

12 (B) by striking ‘‘(d) DEFINITION’’ and all 

13 that follows through ‘‘the term’’ and inserting the 

14 following: 

15 ‘‘(d) DEFINITIONS.—In this section: 

16 ‘‘(1) DISLOCATED WORKER.—The term ‘dis17 located worker’ has the meaning given the term in 

18 section 101 of the Workforce Investment Act of 1998 

19 (29 U.S.C. 2801). 

20 ‘‘(2) MEANS-TESTED FEDERAL BENEFIT PRO21 GRAM.—The term’’. 

22 (b) DISCRETION OF STUDENT FINANCIAL AID ADMIN23 ISTRATORS.—Section 479A(a) (20 U.S.C. 1087tt(a)) is 

24 amended in the third sentence by inserting ‘‘a family mem25 ber who is a dislocated worker (as defined in section 101 


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1 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)),’’ 

2 after ‘‘recent unemployment of a family member,’’. 

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

4 section shall be effective on July 1, 2009. 

5 SEC. 104. DEFINITIONS. 

6 (a) TOTAL INCOME.—Section 480(a)(2) (20 U.S.C. 

7 1087vv(a)(2)) is amended— 

8 (1) by striking ‘‘and no portion’’ and inserting 

9 ‘‘no portion’’; and 

10 (2) by inserting ‘‘and no distribution from any 

11 qualified education benefit described in subsection 

12 (f)(3) that is not subject to Federal income tax,’’ after 

13 ‘‘1986,’’. 

14 (b) UNTAXED INCOME AND BENEFITS.—Section 480(b) 

15 (20 U.S.C. 1087vv(b)) is amended to read as follows: 

16 ‘‘(b) UNTAXED INCOME AND BENEFITS.— 

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

18 means— 

19 ‘‘(A) child support received; 

20 ‘‘(B) workman’s compensation; 

21 ‘‘(C) veteran’s benefits such as death pen22 sion, dependency, and indemnity compensation, 

23 but excluding veterans’ education benefits as de24 fined in subsection (c); 

25 ‘‘(D) interest on tax-free bonds; 


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

2 (excluding rent subsidies for low-income housing) 

3 for military, clergy, and others (including cash 

4 payments and cash value of benefits); 

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

6 the student‘s behalf, except, for dependent stu7 dents, funds provided by the student’s parents; 

8 ‘‘(G) untaxed portion of pensions; 

9 ‘‘(H) payments to individual retirement ac10 counts and Keogh accounts excluded from income 

11 for Federal income tax purposes; and 

12 ‘‘(I) any other untaxed income and benefits, 

13 such as Black Lung Benefits, Refugee Assistance, 

14 railroad retirement benefits, or Job Training 

15 Partnership Act noneducational benefits or bene16 fits received through participation in employ17 ment and training activities under title I of the 

18 Workforce Investment Act of 1998 (29 U.S.C. 

19 2801 et seq.). 

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

21 shall not include the amount of additional child tax 

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

23 (c) ASSETS.—Section 480(f) (20 U.S.C. 1087vv(f)) is 

24 amended— 


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1 (1) in paragraph (3), by striking ‘‘shall not be 

2 considered an asset of a student for purposes of sec3 tion 475’’ and inserting ‘‘shall be considered an asset 

4 of the parent for purposes of section 475’’; 

5 (2) by redesignating paragraphs (4) and (5) as 

6 paragraphs (5) and (6), respectively; and 

7 (3) by inserting after paragraph (3) the fol8 lowing: 

9 ‘‘(4) A qualified education benefit shall be con10 sidered an asset of the student for purposes of section 

11 476 and 477.’’. 

12 (d) OTHER FINANCIAL ASSISTANCE.—Section 

13 480(j)(2) (20 U.S.C. 1087vv(j)(2)) is amended by inserting 

14 ‘‘, or a distribution that is not includable in gross income 

15 under section 529 of such Code, under another prepaid tui16 tion plan offered by a State, or under a Coverdell education 

17 savings account under section 530 of such Code,’’ after 

18 ‘‘1986’’. 

19 (e) EFFECTIVE DATE.—The amendments made by this 

20 section shall be effective on July 1, 2009. 

21 PART B—MAKING STUDENT LOANS MORE 

22 AFFORDABLE 

23 SEC. 111. INTEREST RATE REDUCTIONS. 

24 (a) FFEL INTEREST RATES.— 


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1 (1) Section 427A(l) (20 U.S.C. 1077a(l)) is 

2 amended by adding at the end the following new 

3 paragraph: 

4 ‘‘(4) REDUCED RATES FOR UNDERGRADUATE

5 SUBSIDIZED LOANS.—Notwithstanding subsection (h) 

6 and paragraph (1) of this subsection, with respect to 

7 any loan to an undergraduate student made, insured, 

8 or guaranteed under this part (other than a loan 

9 made pursuant to section 428B, 428C, or 428H) for 

10 which the first disbursement is made on or after July 

11 1, 2006, and before July 1, 2013, the applicable rate 

12 of interest shall be as follows: 

13 ‘‘(A) For a loan for which the first disburse14 ment is made on or after July 1, 2006, and be15 fore July 1, 2008, 6.80 percent on the unpaid 

16 principal balance of the loan. 

17 ‘‘(B) For a loan for which the first disburse18 ment is made on or after July 1, 2008, and be19 fore July 1, 2009, 6.12 percent on the unpaid 

20 principal balance of the loan. 

21 ‘‘(C) For a loan for which the first disburse22 ment is made on or after July 1, 2009, and be23 fore July 1, 2010, 5.44 percent on the unpaid 

24 principal balance of the loan. 


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1 ‘‘(D) For a loan for which the first dis2 bursement is made on or after July 1, 2010, and 

3 before July 1, 2011, 4.76 percent on the unpaid 

4 principal balance of the loan. 

5 ‘‘(E) For a loan for which the first disburse6 ment is made on or after July 1, 2011, and be7 fore July 1, 2012, 4.08 percent on the unpaid 

8 principal balance of the loan. 

9 ‘‘(F) For a loan for which the first disburse10 ment is made on or after July 1, 2012 and before 

11 July 1, 2013, 3.40 percent on the unpaid prin12 cipal balance of the loan.’’. 

13 (2) SPECIAL ALLOWANCE CROSS REFERENCE.— 

14 Section 438(b)(2)(I)(ii)(II) (20 U.S.C. 

15 1086(b)(2)(I)(ii)(II)) is amended by striking ‘‘section 

16 427A(l)(1)’’ and inserting ‘‘section 427A(l)(1) or 

17 (l)(4)’’. 

18 (b) DIRECT LOAN INTEREST RATES.—Section 

19 455(b)(7) (20 U.S.C. 1087e(b)(7)) is amended by adding 

20 at the end the following new subparagraph: 

21 ‘‘(D) REDUCED RATES FOR UNDER22 GRADUATE FDSL.—Notwithstanding the pre23 ceding paragraphs of this subsection, for Federal 

24 Direct Stafford Loans made to undergraduate 

25 students for which the first disbursement is made 


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1 on or after July 1, 2006, and before July 1, 

2 2013, the applicable rate of interest shall be as 

3 follows: 

4 ‘‘(i) For a loan for which the first dis5 bursement is made on or after July 1, 2006, 

6 and before July 1, 2008, 6.80 percent on the 

7 unpaid principal balance of the loan. 

8 ‘‘(ii) For a loan for which the first dis9 bursement is made on or after July 1, 2008, 

10 and before July 1, 2009, 6.12 percent on the 

11 unpaid principal balance of the loan. 

12 ‘‘(iii) For a loan for which the first 

13 disbursement is made on or after July 1, 

14 2009, and before July 1, 2010, 5.44 percent 

15 on the unpaid principal balance of the loan. 

16 ‘‘(iv) For a loan for which the first dis17 bursement is made on or after July 1, 2010, 

18 and before July 1, 2011, 4.76 percent on the 

19 unpaid principal balance of the loan. 

20 ‘‘(v) For a loan for which the first dis21 bursement is made on or after July 1, 2011, 

22 and before July 1, 2012, 4.08 percent on the 

23 unpaid principal balance of the loan. 

24 ‘‘(vi) For a loan for which the first dis25 bursement is made on or after July 1, 2012, 


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1 and before July 1, 2013, 3.40 percent on the 

2 unpaid principal balance of the loan.’’. 

3 SEC. 112. INCREASES IN LOAN LIMITS. 

4 (a) INCREASE IN THIRD AND SUBSEQUENT YEAR LIM5 ITS.— 

6 (1) FEDERAL INSURANCE LIMITS.—Section 

7 425(a)(1)(A)(iii) (20 U.S.C. 1075(a)(1)(A)(iii)) is 

8 amended by striking ‘‘$5,500’’ and inserting 

9 ‘‘$7,500’’. 

10 (2) GUARANTY LIMITS.—Section 

11 428(b)(1)(A)(iii)(I) (20 U.S.C. 1078(b)(1)(A)(iii)(I)) 

12 is amended by striking ‘‘$5,500’’ and inserting 

13 ‘‘$7,500’’. 

14 (b) INCREASE IN AGGREGATE LIMITS.— 

15 (1) FEDERAL INSURANCE LIMITS.—Section 

16 425(a)(2)(A) (20 U.S.C. 1075(a)(2)(A)(i)) is amend17 ed— 

18 (A) in clause (i), by striking ‘‘$23,000’’ and 

19 inserting ‘‘$30,500’’; and 

20 (B) in clause (ii), by striking ‘‘$65,500’’ 

21 and inserting ‘‘$73,000’’. 

22 (2) GUARANTY LIMITS.—Section 428(b)(1)(B) 

23 (20 U.S.C. 1078(b)(1)(A)(iii)(I)) is amended— 

24 (A) in clause (i), by striking ‘‘$23,000’’ and 

25 inserting ‘‘$30,500’’; and 


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1 (B) in clause (ii), by striking ‘‘$65,500’’ 

2 and inserting ‘‘$73,000’’. 

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

4 section shall be effective July 1, 2008. 

5 SEC. 113. REDUCTION OF LENDER SPECIAL ALLOWANCE 

6 PAYMENTS. 

7 Section 438(b)(2)(I) (20 U.S.C. 1087–1(b)(2)(I)) is 

8 amended— 

9 (1) in clause (i), by striking ‘‘clauses (ii), (iii), 

10 and (iv)’’ and inserting ‘‘the following clauses’’; 

11 (2) in clause (v)(III), by striking ‘‘clauses (ii), 

12 (iii), and (iv)’’ and inserting ‘‘clauses (ii), (iii), (iv), 

13 and (vi)’’; and 

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

15 clause: 

16 ‘‘(vi) REDUCTION FOR LOANS ON OR

17 AFTER OCTOBER 1, 2007.—With respect to a 

18 loan on which the applicable interest rate is 

19 determined under section 427A(l), the per20 centage to be added under clause (i)(III) in 

21 computing the special allowance payment 

22 pursuant to this subparagraph shall be the 

23 following: 

24 ‘‘(I) IN GENERAL AND PLUS

25 LOANS.—1.79 percent in the case of a 


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1 loan described in clause (i) or (iii) for 

2 which the first disbursement of prin3 cipal is made on or after October 1, 

4 2007. 

5 ‘‘(II) IN SCHOOL AND GRACE PE6 RIOD.—1.19 percent in the case of a 

7 loan described in clause (ii)(II) for 

8 which the first disbursement of prin9 cipal is made on or after October 1, 

10 2007. 

11 ‘‘(III) CONSOLIDATION LOANS.— 

12 2.09 percent in the case of a loan de13 scribed in clause (iv) for which the 

14 first disbursement of principal is made 

15 on or after October 1, 2007.’’. 

16 SEC. 114. ELIMINATION OF EXCEPTIONAL PERFORMER STA17 TUS FOR LENDERS. 

18 (a) ELIMINATION OF STATUS.—Part B of title IV (20 

19 U.S.C. 1071 et seq.) is amended by striking section 428I 

20 (20 U.S.C. 1078–9). 

21 (b) CONFORMING AMENDMENTS.—Part B of title IV is 

22 further amended— 

23 (1) in section 428(c)(1) (20 U.S.C. 1078(c)(1))— 

24 (A) by striking subparagraph (D); and 


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1 (B) by redesignating subparagraphs (E) 

2 through (H) as subparagraphs (D) through (G), 

3 respectively; and 

4 (2) in section 438(b)(5) (20 U.S.C. 1087– 

5 1(b)(5)), by striking the matter following subpara6 graph (B). 

7 SEC. 115. REDUCTION OF LENDER INSURANCE PERCENT8 AGE. 

9 (a) AMENDMENT.—Subparagraph (G) of section 

10 428(b)(1) (20 U.S.C. 1078(b)(1)(G)) is amended to read as 

11 follows: 

12 ‘‘(G) insures 95 percent of the unpaid prin13 cipal of loans insured under the program, except 

14 that— 

15 ‘‘(i) such program shall insure 100 

16 percent of the unpaid principal of loans 

17 made with funds advanced pursuant to sec18 tion 428(j) or 439(q); and 

19 ‘‘(ii) notwithstanding the preceding 

20 provisions of this subparagraph, such pro21 gram shall insure 100 percent of the unpaid 

22 principal amount of exempt claims as de23 fined in subsection (c)(1)(G);’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by sub2 section (a) shall take effect with respect to loans made on 

3 or after October 1, 2007. 

4 SEC. 116. GUARANTY AGENCY COLLECTION RETENTION. 

5 Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 

6 1078(c)(6)(A)(ii)) is amended to read as follows: 

7 ‘‘(ii) an amount equal to 23 percent of 

8 such payments for use in accordance with 

9 section 422B, except that beginning October 

10 1, 2007, this subparagraph shall be applied 

11 by substituting ‘16 percent’ for ‘23 per12 cent’.’’. 

13 SEC. 117. UNIT COSTS FOR ACCOUNT MAINTENANCE FEES. 

14 Section 458(b) (20 U.S.C. 1087h(b)) is amended— 

15 (1) by striking ‘‘Account’’ and inserting the fol16 lowing: 

17 ‘‘(1) FOR FISCAL YEARS 2006 AND 2007.—For fis18 cal years 2006 and 2007, account’’; and 

19 (2) by adding at the end the following new para20 graph: 

21 ‘‘(2) FOR FISCAL YEAR 2008 AND SUCCEEDING

22 FISCAL YEARS.— 

23 ‘‘(A) UNIT COST BASIS.—For fiscal year 

24 2008 and each succeeding fiscal year, the Sec25 retary shall calculate the account maintenance 


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1 fees payable to guaranty agencies under sub2 section (a)(3), on a per-loan cost basis in accord3 ance with subparagraph (B) of this paragraph. 

4 ‘‘(B) DETERMINATIONS.—To determine the 

5 amount that shall be paid under subsection 

6 (a)(3) per outstanding loan guaranteed by a 

7 guaranty agency for fiscal year 2008 and suc8 ceeding fiscal years, the Secretary shall— 

9 ‘‘(i) establish the per-loan cost basis 

10 amount by— 

11 ‘‘(I) dividing the total amount of 

12 account maintenance fees paid under 

13 subsection (a)(3) in fiscal year 2006, 

14 by 

15 ‘‘(II) the number of loans under 

16 part B that were outstanding in that 

17 fiscal year; and 

18 ‘‘(ii) determine on October 1 of fiscal 

19 year 2008 and each subsequent fiscal year, 

20 and pay to each guaranty agency, an 

21 amount equal to the product of the number 

22 of loans under part B that are outstanding 

23 on October 1 of that fiscal year and insured 

24 by that guaranty agency, multiplied by— 


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1 ‘‘(I) the amount determined under 

2 clause (i); increased by 

3 ‘‘(II) a percentage equal to the 

4 percentage increase in the GDP price 

5 index (as determined by the Bureau of 

6 Labor Statistics of the Department of 

7 Labor) between the calendar quarter 

8 ending on June 30, 2006, and the cal9 endar quarter ending on the June 30 

10 preceding such October 1 of such fiscal 

11 year.’’. 

12 SEC. 118. INCREASED LOAN FEES FROM LENDERS. 

13 Paragraph (2) of section 438(d) (20 U.S.C. 1087– 

14 1(d)(2)) is amended to read as follows: 

15 ‘‘(2) AMOUNT OF LOAN FEES.— 

16 ‘‘(A) AMOUNT.—The amount of the loan fee 

17 which shall be deducted under paragraph (1), 

18 but which may not be collected from the bor19 rower, shall be equal to— 

20 ‘‘(i) except as provided in clauses (ii) 

21 and (iii), 0.50 percent of the principal 

22 amount of the loan with respect to any loan 

23 under this part for which the first disburse24 ment was made on or after October 1, 1993; 


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1 ‘‘(ii) 1.0 percent of the principal 

2 amount of the loan with respect to any loan 

3 under this part for which the first disburse4 ment was made on or after October 1, 2007, 

5 that is held by any holder other than a 

6 holder described in subclause (I) or (II) of 

7 clause (iii); and 

8 ‘‘(iii) 0.0 percent of the principal 

9 amount of the loan with respect to any loan 

10 under this part for which the first disburse11 ment was made on or after October 1, 2007, 

12 that is held by— 

13 ‘‘(I) any holder that, together with 

14 its affiliated holders, is designated by 

15 the Secretary as a small lender under 

16 subparagraph (B); or 

17 ‘‘(II) any holder that— 

18 ‘‘(aa) is a unit of State or 

19 local government or a nonprofit 

20 private entity; and 

21 ‘‘(bb) is not owned in whole 

22 or in part by, or controlled or op23 erated by, or otherwise affiliated 

24 with, a for-profit entity. 


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1 ‘‘(B) DESIGNATION OF SMALL LENDERS.— 

2 In determining which holders of eligible loans 

3 qualify as small lenders for purposes of subpara4 graph (A)(iii)(I), the Secretary shall, using the 

5 most recently available data with respect to the 

6 total principal amount of eligible loans held by 

7 holders— 

8 ‘‘(i) rank all holders of eligible loans 

9 (combined with their affiliated holders) in 

10 descending order by total principal amount 

11 of eligible loans held; 

12 ‘‘(ii) calculate the total principal 

13 amount of eligible loans held by all holders; 

14 and 

15 ‘‘(iii) identify the subset of consecu16 tively ranked holders under clause (i), start17 ing with the lowest ranked holder, that to18 gether hold a total principal amount of such 

19 loans equal to 15 percent of the total 

20 amount calculated under clause (ii), but ex21 cluding the holder, if any, whose holdings 

22 when added cause the total holdings of the 

23 subset to equal but not exceed such 15 per24 cent of such total amount calculated; and 


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1 ‘‘(iv) designate as small lenders any 

2 holder identified as a member of the subset 

3 under clause (iii).’’. 

4 SEC. 119. STUDENT LOAN INFORMATION. 

5 Section 428(k) (20 U.S.C. 1078(k)) is amended by 

6 adding at the end the following new paragraph: 

7 ‘‘(4) STUDENT LOAN INFORMATION.— 

8 ‘‘(A) Notwithstanding any other provision 

9 of law or regulation, a lender, secondary market, 

10 holder, or guaranty agency shall provide, free of 

11 charge and in a timely and effective manner, 

12 any student loan information maintained by 

13 that entity that is requested by an institution of 

14 higher education or any third-party servicer (as 

15 defined in section 481(c)) working on behalf of 

16 that institution to prevent student loan defaults. 

17 ‘‘(B) An institution and any third-party 

18 servicer obtaining access to information under 

19 subparagraph (A) shall safeguard that informa20 tion in order to prevent potential abuses of that 

21 information, including identity theft. 

22 ‘‘(C) Any third party servicer that obtains 

23 information under this paragraph— 

24 ‘‘(i) shall only use the information in 

25 a manner directly related to the default preVerDate Aug 31 2005 02:37 Jun 26, 2007 Jkt 059200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6203 E:\BILLS\H2669.RH H2669

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1 vention work the servicer is performing on 

2 behalf of the institution of higher education; 

3 and 

4 ‘‘(ii) shall be subject to any regulations 

5 established by the Secretary pursuant to sec6 tion 432 concerning the misuse of such in7 formation, including any penalties for such 

8 misuse.’’. 

9 SEC. 120. MARKET-BASED DETERMINATION OF LENDER RE10 TURNS. 

11 (a) JOINT PLANNING STUDY TO SELECT AUCTION

12 MECHANISMS FOR TESTING.— 

13 (1) PLANNING STUDY.—The Secretaries of Edu14 cation and Treasury jointly shall conduct a planning 

15 study, in consultation with the Office of Management 

16 and Budget, the Congressional Budget Office, the Gen17 eral Accounting Office, and other individuals and en18 tities the Secretaries determines appropriate, to— 

19 (A) examine the matters described in para20 graph (2) in order to determine which market21 based mechanisms for determining lender returns 

22 on loans made, insured, or guaranteed under 

23 part B of title IV of the Higher Education Act 

24 of 1965 (20 U.S.C. 1071 et seq.) shall be tested 


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1 under the pilot programs described in subsection 

2 (c); and 

3 (B) determine what related administrative 

4 and other changes will be required in order to 

5 ensure that high-quality services are provided 

6 under a successful implementation of market7 based determinations of lender returns for all 

8 loans made, insured, or guaranteed under such 

9 part. 

10 (2) MATTERS EXAMINED.—The planning study 

11 under this subsection shall examine— 

12 (A) whether it is most appropriate to auc13 tion existing loans under part B of title IV of 

14 such Act, to auction the rights to originate loans 

15 under such part, or whether the sale of securities 

16 backed by federally-owned student loan assets 

17 originated by banks acting as agents of the Fed18 eral Government would provide the most efficient 

19 market-based alternative; 

20 (B) matters related to efficient financial or21 ganization of any auctions or sales of loans 

22 under such part, including how loans and origi23 nation rights are bundled, the capital structure 

24 of any securitization plan, and issues related to 

25 servicing; and 


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1 (C) how to ensure that statutory, regu2 latory, and administrative requirements do not 

3 impede separate management and ownership of 

4 loans or assets backed by loans under part B of 

5 title IV of such Act. 

6 (3) MECHANISMS.—In determining which mar7 ket-based mechanisms are the most promising models 

8 to test the pilot programs under subsection (b), the 

9 planning study shall take into account whether a par10 ticular market-based mechanism will— 

11 (A) ensure loan availability under part B 

12 of title IV of such Act to all eligible students at 

13 all participating institutions; 

14 (B) minimize administrative complexity for 

15 borrowers, institutions, lenders, and the Federal 

16 Government; and 

17 (C) reduce Federal costs if used on a pro18 gram-wide basis. 

19 (4) REPORT.—A report on the results of the 

20 planning study, together with a plan for implementa21 tion of one or more pilot programs using promising 

22 market-based approaches for determining lender re23 turns, shall be transmitted to Congress not later than 

24 6 months after the date of enactment of this Act. 

25 (b) PILOT PROGRAMS TO BE TESTED.— 


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1 (1) AUTHORIZATION.— 

2 (A) IN GENERAL.—Notwithstanding any 

3 other provision of law, after the report described 

4 in subsection (a)(4) is transmitted to Congress, 

5 the Secretary of Education shall, in consultation 

6 with the Secretary of the Treasury, begin prep7 arations necessary to carry out pilot programs 

8 meeting the requirements of this subsection in 

9 accordance with the implementation plan in10 cluded in such report. 

11 (B) IMPLEMENTATION DATE.—The Sec12 retary of Education shall commence implementa13 tion of the pilot programs under this subsection 

14 not earlier than July 1, 2008. 

15 (C) DURATION AND LOAN VOLUME.—The 

16 pilot programs under this subsection shall be not 

17 more than two academic years in duration, and 

18 the Secretary of Education may use the pilot 

19 programs to determining the lender returns for 

20 not more than— 

21 (i) 10 percent of the annual loan vol22 ume under part B of title IV of the Higher 

23 Education Act of 1965 during the first year 

24 of the pilot programs under this subsection; 

25 and 


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1 (ii) 20 percent of the annual loan vol2 ume under part B of title IV of such Act 

3 during the second year of the pilot pro4 grams under this subsection. 

5 (2) VOLUNTARY PARTICIPATION.— 

6 (A) Participation in any auction-based 

7 pilot program under this subsection shall be vol8 untary for eligible institutions and eligible lend9 ers participating under part B of title IV of such 

10 Act prior to July 1, 2006. 

11 (B) All savings to the United States Treas12 ury generated by such auctions shall be distrib13 uted to institutions participating under this sub14 section on a basis proportionate to loan volume 

15 under such part for supplemental, need-based fi16 nancial aid, except that an institution that is 

17 operating as an eligible lender under section 

18 435(d)(2) of such Act shall not be eligible for any 

19 such distribution. 

20 (3) INDEPENDENT EVALUATION.—The Govern21 ment Accountability Office shall conduct an inde22 pendent evaluation of the pilot programs under this 

23 subsection, which evaluation shall be completed, and 

24 the results of such submitted to the Secretary of Edu25 cation, the Secretary of the Treasury, and Congress, 


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1 not later than 120 days after the termination of such 

2 pilot programs. 

3 (c) PROGRAM-WIDE IMPLEMENTATION.—Notwith4 standing any other provision of part B of title IV of the 

5 Higher Education Act of 1965, for the first academic year 

6 beginning not less than 120 days after the independent eval7 uation described in subsection (b)(3) has been transmitted 

8 to Congress, and succeeding academic years, the Secretary 

9 of Education is authorized to implement for all loans made 

10 under such part, a program-wide, market-based system to 

11 determine returns to all lenders as the Secretary of Edu12 cation determines appropriate, provided that— 

13 (1) the Secretary of Education, in consultation 

14 with the Secretary of the Treasury, has certified that 

15 the auction-based system that the Secretary of Edu16 cation intends to implement on a program-wide basis 

17 would— 

18 (A) ensure loan availability under such 

19 part to all eligible students at all participating 

20 institutions; 

21 (B) minimize administrative complexity for 

22 borrowers, institutions, lenders, and the Federal 

23 Government, including the enhancement of the 

24 modernization of the student financial aid sys25 tem; and 


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1 (C) reduce Federal costs when used on a 

2 program-wide basis; and 

3 (2) the Secretary of Education has notified Con4 gress of the Secretary’s intent to implement a pro5 gram-wide auction based system, and has provided a 

6 description of the structure of such auction-based sys7 tem, at least 120 days before implementing such sys8 tem. 

9 (d) CONSULTATION.— 

10 (1) IN GENERAL.—As part of the planning 

11 study, pilot programs, and program-wide implemen12 tation phases described in this section, the Secretary 

13 of Education shall consult with representatives of in14 vestment banks, ratings agencies, lenders, institutions 

15 of higher education, and students, as well as individ16 uals or other entities with pertinent technical exper17 tise. The Secretary of Education shall engage in such 

18 consultations using such methods as, and to the extent 

19 that, the Secretary determines appropriate to the time 

20 constraints associated with the study, programs, and 

21 implementation. 

22 (2) SERVICES OF OTHER FEDERAL AGENCIES.— 

23 In carrying out the planning study and pilot pro24 grams described in this section, the Secretary of Edu25 cation may use, on a reimbursable basis, the services 


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1 (including procurement authorities and services), 

2 equipment, personnel, and facilities of other agencies 

3 and instrumentalities of the Federal Government. 

4 PART C—REWARDING SERVICE IN REPAYMENT 

5 SEC. 131. LOAN FORGIVENESS FOR SERVICE IN AREAS OF 

6 NATIONAL NEED. 

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

8 as follows: 

9 ‘‘SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF 

10 NATIONAL NEED. 

11 ‘‘(a) PROGRAM AUTHORIZED.— 

12 ‘‘(1) LOAN FORGIVENESS AUTHORIZED.—The 

13 Secretary shall forgive, in accordance with this sec14 tion, the student loan obligation of a borrower in the 

15 amount specified in subsection (c), for any new bor16 rower after the date of enactment of the College Cost 

17 Reduction Act of 2007, who— 

18 ‘‘(A) is employed full-time in an area of na19 tional need described in subsection (b); and 

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

21 the borrower seeks forgiveness. 

22 ‘‘(2) METHOD OF LOAN FORGIVENESS.—To pro23 vide loan forgiveness under paragraph (1), the Sec24 retary is authorized to carry out a program— 


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1 ‘‘(A) through the holder of the loan, to as2 sume the obligation to repay a qualified loan 

3 amount for a loan made, insured, or guaranteed 

4 under this part; and 

5 ‘‘(B) to cancel a qualified loan amount for 

6 a loan made under part D of this title. 

7 ‘‘(3) REGULATIONS.—The Secretary is author8 ized to issue such regulations as may be necessary to 

9 carry out the provisions of this section. 

10 ‘‘(b) AREAS OF NATIONAL NEED.—For purposes of this 

11 section, an individual shall be treated as employed in an 

12 area of national need if the individual is employed full13 time as any of the following: 

14 ‘‘(1) EARLY CHILDHOOD EDUCATORS.—An indi15 vidual who is employed as an early childhood educa16 tor in an eligible preschool program or eligible early 

17 childhood education program in a low-income com18 munity, and who is involved directly in the care, de19 velopment, and education of infants, toddlers, or 

20 young children age 5 and under. 

21 ‘‘(2) NURSES.—An individual who is em22 ployed— 

23 ‘‘(A) as a nurse in a clinical setting; or 

24 ‘‘(B) as a member of the nursing faculty at 

25 an accredited school of nursing (as those terms 


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1 are defined in section 801 of the Public Health 

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

3 ‘‘(3) FOREIGN LANGUAGE SPECIALISTS.—An in4 dividual who has obtained a baccalaureate degree in 

5 a critical foreign language and is employed— 

6 ‘‘(A) in an elementary or secondary school 

7 as a teacher of a critical foreign language; or 

8 ‘‘(B) in an agency of the United States 

9 Government in a position that regularly requires 

10 the use of such critical foreign language. 

11 ‘‘(4) LIBRARIANS.—An individual who is em12 ployed as a librarian in— 

13 ‘‘(A) a public library that serves a geo14 graphic area within which the public schools 

15 have a combined average of 30 percent or more 

16 of their total student enrollments composed of 

17 children counted under section 1113(a)(5) of the 

18 Elementary and Secondary Education Act of 

19 1965; or 

20 ‘‘(B) an elementary or secondary school 

21 which is in the school district of a local edu22 cational agency which is eligible in such year for 

23 assistance pursuant to title I of the Elementary 

24 and Secondary Education Act of 1965, and 

25 which for the purpose of this paragraph and for 


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1 that year has been determined by the Secretary 

2 (pursuant to regulations and after consultation 

3 with the State educational agency of the State in 

4 which the school is located) to be a school in 

5 which the enrollment of children counted under 

6 section 1113(a)(5) of the Elementary and Sec7 ondary Education Act of 1965 exceeds 30 percent 

8 of the total enrollment of that school. 

9 ‘‘(5) HIGHLY QUALIFIED TEACHERS: BILINGUAL

10 EDUCATION AND LOW-INCOME COMMUNITIES.—An in11 dividual who— 

12 ‘‘(A) is highly qualified as such term is de13 fined in section 9101 of the Elementary and Sec14 ondary Education Act of 1965; and 

15 ‘‘(B)(i) is employed as a full-time teacher of 

16 bilingual education; or 

17 ‘‘(ii) is employed as a teacher in a public 

18 or nonprofit private elementary or secondary 

19 school which is in the school district of a local 

20 educational agency which is eligible in such year 

21 for assistance pursuant to title I of the Elemen22 tary and Secondary Education Act of 1965, and 

23 which for the purpose of this paragraph and for 

24 that year has been determined by the Secretary 

25 (pursuant to regulations and after consultation 


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1 with the State educational agency of the State in 

2 which the school is located) to be a school in 

3 which the enrollment of children counted under 

4 section 1113(a)(5) of the Elementary and Sec5 ondary Education Act of 1965 exceeds 40 percent 

6 of the total enrollment of that school. 

7 ‘‘(6) CHILD WELFARE WORKERS.—An individual 

8 who— 

9 ‘‘(A) has obtained a degree in social work or 

10 a related field with a focus on serving children 

11 and families; and 

12 ‘‘(B) is employed in public or private child 

13 welfare services. 

14 ‘‘(7) SPEECH-LANGUAGE PATHOLOGISTS.—An 

15 individual who is a speech-language pathologist, who 

16 is employed in an eligible preschool program or an el17 ementary or secondary school, and who has, at a min18 imum, a graduate degree in speech-language pathol19 ogy, or communication sciences and disorders. 

20 ‘‘(8) NATIONAL SERVICE.—An individual who is 

21 engaged as a participant in a project under the Na22 tional and Community Service Act of 1990 (as such 

23 terms are defined in section 101 of such Act (42 

24 U.S.C. 12511)). 


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1 ‘‘(9) PUBLIC SECTOR EMPLOYEES.—An indi2 vidual who is employed in public safety (including as 

3 a first responder, firefighter, police officer, or other 

4 law enforcement or public safety officer), emergency 

5 management (including as an emergency medical 

6 technician), public health, or public interest legal 

7 services (including prosecution or public defense). 

8 ‘‘(c) QUALIFIED LOAN AMOUNT.—At the end of each 

9 school, academic, or calendar year of full-time employment 

10 in an area of national need described in subsection (b), not 

11 to exceed 5 years, the Secretary shall forgive not more than 

12 $1,000 of the student loan obligation of a borrower that is 

13 outstanding after the completion of each such school, aca14 demic, or calendar year of employment, as appropriate, not 

15 to exceed $5,000 in the aggregate for any borrower. 

16 ‘‘(d) CONSTRUCTION.—Nothing in this section shall be 

17 construed to authorize the refunding of any repayment of 

18 a loan. 

19 ‘‘(e) SEGAL AMERICORPS EDUCATION AWARD AND NA20 TIONAL SERVICE AWARD RECIPIENTS.—A student borrower 

21 who qualifies for the maximum education award under sub22 title D of title I of the National and Community Service 

23 Act of 1990 (42 U.S.C. 12601 et seq.) shall receive under 

24 this section the amount, if any, by which the maximum 


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1 benefit available under this section exceeds the maximum 

2 education award available under such subtitle. 

3 ‘‘(f) INELIGIBILITY FOR DOUBLE BENEFITS.—No bor4 rower may receive a reduction of loan obligations under 

5 both this section and section 428J or 460. 

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

7 ‘‘(1) CRITICAL FOREIGN LANGUAGE.—The term 

8 ‘critical foreign language’ includes the languages of 

9 Arabic, Korean, Japanese, Chinese, Pashto, Persian10 Farsi, Serbian-Croatian, Russian, Portuguese, and 

11 any other language identified by the Secretary of 

12 Education, in consultation with the Defense Lan13 guage Institute, the Foreign Service Institute, and the 

14 National Security Education Program, as a critical 

15 foreign language need. 

16 ‘‘(2) EARLY CHILDHOOD EDUCATOR.—The term 

17 ‘early childhood educator’ means an early childhood 

18 educator who works directly with children in an eligi19 ble preschool program or eligible early childhood edu20 cation program who has completed a baccalaureate or 

21 advanced degree in early childhood development, early 

22 childhood education, or in a field related to early 

23 childhood education. 

24 ‘‘(3) ELIGIBLE PRESCHOOL PROGRAM.—The 

25 term ‘eligible preschool program’ means a program 


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1 that provides for the care, development, and education 

2 of infants, toddlers, or young children age 5 and 

3 under, meets any applicable State or local govern4 ment licensing, certification, approval, and registra5 tion requirements, and is operated by— 

6 ‘‘(A) a public or private school that is sup7 ported, sponsored, supervised, or administered by 

8 a local educational agency; 

9 ‘‘(B) a Head Start agency serving as a 

10 grantee designated under the Head Start Act (42 

11 U.S.C. 9831 et seq.); 

12 ‘‘(C) a nonprofit or community based orga13 nization; or 

14 ‘‘(D) a child care program, including a 

15 home. 

16 ‘‘(4) ELIGIBLE EARLY CHILDHOOD EDUCATION

17 PROGRAM.—The term ‘eligible early childhood edu18 cation program’ means— 

19 ‘‘(A) a family child care program, center20 based child care program, State prekindergarten 

21 program, school program, or other out-of-home 

22 early childhood development care program, 

23 that— 

24 ‘‘(i) is licensed or regulated by the 

25 State; and 


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1 ‘‘(ii) serves 2 or more unrelated chil2 dren who are not old enough to attend kin3 dergarten; 

4 ‘‘(B) a Head Start Program carried out 

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

6 seq.); or 

7 ‘‘(C) an Early Head Start Program carried 

8 out under section 645A of the Head Start Act 

9 (42 U.S.C. 9840a). 

10 ‘‘(5) LOW-INCOME COMMUNITY.—In this sub11 section, the term ‘low-income community’ means a 

12 community in which 70 percent of households earn 

13 less than 85 percent of the State median household in14 come. 

15 ‘‘(6) NURSE.—The term ‘nurse’ means a nurse 

16 who meets all of the following: 

17 ‘‘(A) The nurse graduated from— 

18 ‘‘(i) an accredited school of nursing (as 

19 those terms are defined in section 801 of the 

20 Public Health Service Act (42 U.S.C. 296)); 

21 ‘‘(ii) a nursing center; or 

22 ‘‘(iii) an academic health center that 

23 provides nurse training. 


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1 ‘‘(B) The nurse holds a valid and unre2 stricted license to practice nursing in the State 

3 in which the nurse practices in a clinical setting. 

4 ‘‘(C) The nurse holds one or more of the fol5 lowing: 

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

7 an equivalent degree. 

8 ‘‘(ii) A nursing degree from a collegiate 

9 school of nursing (as defined in section 801 

10 of the Public Health Service Act (42 U.S.C. 

11 296)). 

12 ‘‘(iii) A nursing degree from an asso13 ciate degree school of nursing (as defined in 

14 section 801 of the Public Health Service Act 

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

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

17 school of nursing (as defined in section 801 

18 of the Public Health Service Act (42 U.S.C. 

19 296)). 

20 ‘‘(7) SPEECH-LANGUAGE PATHOLOGIST.—The 

21 term ‘speech-language pathologist’ means a speech22 language pathologist who— 

23 ‘‘(A) has received, at a minimum, a grad24 uate degree in speech-language pathology or com25 munication sciences and disorders from an instiVerDate Aug 31 2005 02:37 Jun 26, 2007 Jkt 059200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6203 E:\BILLS\H2669.RH H2669

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1 tution of higher education accredited by an agen2 cy or association recognized by the Secretary 

3 pursuant to section 496(a) of this Act; and 

4 ‘‘(B) provides speech-language pathology 

5 services under section 1861(ll)(1) of the Social 

6 Security Act (42 U.S.C. 1395x(ll)(1), or meets or 

7 exceeds the qualifications for a qualified speech8 language pathologist under subsection (ll)(3) of 

9 such section (42 U.S.C. 1395x(ll)(3)). 

10 ‘‘(h) PROGRAM FUNDING.—There shall be available to 

11 the Secretary to carry out this section, from funds not other12 wise appropriated, such sums as may be necessary to pro13 vide loan forgiveness in accordance with this section to each 

14 eligible individual.’’. 

15 SEC. 132. INCOME-CONTINGENT REPAYMENT FOR PUBLIC 

16 SECTOR EMPLOYEES. 

17 Section 455(e) (20 U.S.C. 1087e(e)) is amended by 

18 adding at the end the following: 

19 ‘‘(7) REPAYMENT PLAN FOR PUBLIC SECTOR EM20 PLOYEES.— 

21 ‘‘(A) IN GENERAL.—The Secretary shall for22 give the balance due on any loan made under 

23 this part or section 428C(b)(5) for a borrower— 


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1 ‘‘(i) who has made 120 payments on 

2 such loan pursuant to income-contingent re3 payment; and 

4 ‘‘(ii) who is employed, and was em5 ployed for the 10-year period in which the 

6 borrower made the 120 payments described 

7 in clause (i), in a public sector job. 

8 ‘‘(B) PUBLIC SECTOR JOB.—In this para9 graph, the term ‘public sector job’ means a full10 time job in emergency management, government, 

11 public safety, law enforcement, public health, 

12 education (including early childhood education), 

13 social work in a public child or family service 

14 agency, or public interest legal services (includ15 ing prosecution or public defense). 

16 ‘‘(8) RETURN TO STANDARD REPAYMENT.—A 

17 borrower who is repaying a loan made under this 

18 part pursuant to income-contingent repayment may 

19 choose, at any time, to terminate repayment pursuant 

20 to income-contingent repayment and repay such loan 

21 under the standard repayment plan.’’. 

22 SEC. 133. INCOME-BASED REPAYMENT. 

23 (a) AMENDMENT.—Part G of title IV (20 U.S.C. 1088 

24 et seq.) is further amended by adding at the end the fol25 lowing: 


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1 ‘‘SEC. 493C. INCOME-BASED REPAYMENT. 

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

3 ‘‘(1) EXCEPTED PLUS LOAN.—The term ‘excepted 

4 PLUS loan’ means a loan under section 428B, or a 

5 Federal Direct PLUS Loan, that is made, insured, or 

6 guaranteed on behalf of a dependent student. 

7 ‘‘(2) PARTIAL FINANCIAL HARDSHIP.—The term 

8 ‘partial financial hardship’, when used with respect 

9 to a borrower, means that for such borrower— 

10 ‘‘(A) the annual amount due on the total 

11 amount of loans made, insured, or guaranteed 

12 under part B or D (other than an excepted 

13 PLUS loan) to a borrower as calculated under 

14 the standard repayment plan under section 

15 428(b)(9)(A)(i) or 455(d)(1)(A); exceeds 

16 ‘‘(B) 15 percent of the result obtained by 

17 calculating the amount by which— 

18 ‘‘(i) the borrower’s, and the borrower’s 

19 spouse’s (if applicable), adjusted gross in20 come; exceeds 

21 ‘‘(ii) 150 percent of the poverty line 

22 applicable to the borrower’s family size as 

23 determined under section 673(2) of the 

24 Community Services Block Grant Act (42 

25 U.S.C. 9902(2)). 


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1 ‘‘(b) INCOME-BASED REPAYMENT PROGRAM AUTHOR2 IZED.—Notwithstanding any other provision of this Act, the 

3 Secretary shall carry out a program under which— 

4 ‘‘(1) a borrower of any loan made, insured, or 

5 guaranteed under part B or D (other than an ex6 cepted PLUS loan) who has a partial financial hard7 ship may elect, during any period the borrower has 

8 the partial financial hardship, to have the borrower’s 

9 aggregate monthly payment for all such loans not ex10 ceed the result described in subsection (a)(2)(B) di11 vided by 12; 

12 ‘‘(2) the holder of such a loan shall apply the 

13 borrower’s monthly payment under this subsection 

14 first toward interest due on the loan and then toward 

15 the principal of the loan; 

16 ‘‘(3) any interest due and not paid under para17 graph (2) shall be capitalized; 

18 ‘‘(4) any principal due and not paid under 

19 paragraph (2) shall be deferred; 

20 ‘‘(5) the amount of time the borrower makes 

21 monthly payments under paragraph (1) may exceed 

22 10 years; 

23 ‘‘(6) if the borrower no longer has a partial fi24 nancial hardship or no longer wishes to continue the 

25 election under this subsection, then— 


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1 ‘‘(A) the maximum monthly payment re2 quired to be paid for all loans made to the bor3 rower under part B or D (other than an excepted 

4 PLUS loan) shall not exceed the monthly 

5 amount calculated under section 428(b)(9)(A)(i) 

6 or 455(d)(1)(A) when the borrower first made the 

7 election described in this subsection; and 

8 ‘‘(B) the amount of time the borrower is 

9 permitted to repay such loans may exceed 10 

10 years; 

11 ‘‘(7) the Secretary shall repay or cancel any out12 standing balance of principal and interest due on all 

13 loans made under part B or D (other than a loan 

14 under section 428B or a Federal Direct PLUS Loan) 

15 to a borrower who— 

16 ‘‘(A) is in deferment due to an economic 

17 hardship described in section 435(o) for a period 

18 of time prescribed by the Secretary, not to exceed 

19 20 years; or 

20 ‘‘(B)(i) makes the election to participate in 

21 income-based repayment under paragraph (1); 

22 and 

23 ‘‘(ii) for a period of time prescribed by the 

24 Secretary, not to exceed 20 years (including any 

25 period during which the borrower is in 


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1 deferment due to an economic hardship described 

2 in section 435(o)), meets 1 or more of the fol3 lowing requirements: 

4 ‘‘(I) has made reduced monthly pay5 ments under paragraph (1); 

6 ‘‘(II) has made monthly payments of 

7 not less than the monthly amount calculated 

8 under section 428(b)(9)(A)(i) or 

9 455(d)(1)(A) when the borrower first made 

10 the election described in this subsection; 

11 ‘‘(III) has made payments under a 

12 standard repayment plan under section 

13 428(b)(9)(A)(i) or 455(d)(1)(A); 

14 ‘‘(IV) has made payments under an in15 come-contingent repayment plan under sec16 tion 455(d)(1)(D); and 

17 ‘‘(8) a borrower who is repaying a loan made 

18 under this part pursuant to income-based repayment 

19 may elect, at any time, to terminate repayment pur20 suant to income-based repayment and repay such 

21 loan under the standard repayment plan.’’. 

22 (b) CONFORMING ICR AMENDMENT.—Section 

23 455(d)(1)(D) (20 U.S.C. 1087e(d)(1)(D)) is amended by in24 serting ‘‘made on behalf of a dependent student’’ after 

25 ‘‘PLUS loan’’. 


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1 SEC. 134. DEFINITION OF ECONOMIC HARDSHIP. 

2 Section 435(o) (20 U.S.C. 1085(o)) is amended— 

3 (1) in paragraph (1)— 

4 (A) in subparagraph (A)(ii)— 

5 (i) by striking ‘‘100 percent of the pov6 erty line for a family of 2’’ and inserting 

7 ‘‘150 percent of the poverty line applicable 

8 to the borrower’s family size’’; and 

9 (ii) by inserting ‘‘or’’ after the semi10 colon; 

11 (B) by striking subparagraph (B); and 

12 (C) by redesignating subparagraph (C) as 

13 subparagraph (B); and 

14 (2) in paragraph (2), by striking ‘‘(1)(C)’’ and 

15 inserting ‘‘(1)(B)’’. 

16 SEC. 135. DEFERRALS. 

17 (a) FISL.—Section 427(a)(2)(C)(iii) (20 U.S.C. 

18 1077(a)(2)(C)(iii)) is amended by striking ‘‘not in excess 

19 of 3 years’’. 

20 (b) INTEREST SUBSIDIES.—Section 428(b)(1)(M)(iv) 

21 (20 U.S.C. 1078(b)(1)(M)(iv)) is amended by striking ‘‘not 

22 in excess of 3 years’’. 

23 (c) DIRECT LOANS.—Section 455(f)(2)(D) (20 U.S.C. 

24 1087e(f)(2)(D)) is amended by striking ‘‘not in excess of 

25 3 years’’. 


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1 (d) PERKINS.—Section 464(c)(2)(A)(iv) (20 U.S.C. 

2 1087dd(c)(2)(A)(iv)) is amended by striking ‘‘not in excess 

3 of 3 years’’. 

4 SEC. 136. MAXIMUM REPAYMENT PERIOD. 

5 (a) IN GENERAL.—Section 455(e) (20 U.S.C. 1087e(e)) 

6 is amended by adding at the end the following: 

7 ‘‘(9) MAXIMUM REPAYMENT PERIOD.—In calcu8 lating the extended period of time for which an in9 come-contingent repayment plan under this sub10 section may be in effect for a borrower, the Secretary 

11 shall include all time periods during which a bor12 rower of loans under part B, part D, or part E— 

13 ‘‘(A) is not in default on any loan that is 

14 included in the income-contingent repayment 

15 plan; and 

16 ‘‘(B)(i) is in deferment due to an economic 

17 hardship described in section 435(o); 

18 ‘‘(ii) makes monthly payments under para19 graph (1) or (6) of section 493C(b); or 

20 ‘‘(iii) makes payments under a standard re21 payment plan described in section 

22 428(b)(9)(A)(i) or subsection (d)(1)(A).’’. 

23 (b) TECHNICAL CORRECTION.—Section 455(d)(1)(C) 

24 (20 U.S.C. 1087e(d)(1)(C)) is amended by striking 

25 ‘‘428(b)(9)(A)(v)’’ and inserting ‘‘428(b)(9)(A)(iv)’’. 


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1 SEC. 137. DEFERRAL OF LOAN REPAYMENT FOLLOWING AC2 TIVE DUTY. 

3 Part G of title IV is amended by inserting after section 

4 484B (20 U.S.C. 1091b) the following new section: 

5 ‘‘SEC. 484C. DEFERRAL OF LOAN REPAYMENT FOLLOWING 

6 ACTIVE DUTY. 

7 ‘‘(a) DEFERRAL OF LOAN REPAYMENT FOLLOWING

8 ACTIVE DUTY.—In addition to any deferral of repayment 

9 of a loan made under this title pursuant to section 

10 428(b)(1)(M)(iii), 455(f)(2)(C), or 464(c)(2)(A)(ii), a bor11 rower of a loan under this title who is a member of the 

12 National Guard or other reserve component of the Armed 

13 Forces of the United States, or a member of such Armed 

14 Forces in a retired status, is called or ordered to active 

15 duty, and is currently enrolled, or was enrolled within six 

16 months prior to the activation, in a program of instruction 

17 at an eligible institution, shall be eligible for a deferment 

18 during the 13 months following the conclusion of such serv19 ice, except that a deferment under this subsection shall ex20 pire upon the borrower’s return to enrolled student status. 

21 ‘‘(b) ACTIVE DUTY.—Notwithstanding section 481(d), 

22 in this section, the term ‘active duty’ has the meaning given 

23 such term in section 101(d)(1) of title 10, United States 

24 Code, except that such term— 

25 ‘‘(1) does not include active duty for training or 

26 attendance at a service school; but 


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1 ‘‘(2) includes, in the case of members of the Na2 tional Guard, active State duty.’’. 

3 SEC. 138. SENSE OF THE CONGRESS; REPORT. 

4 (a) SENSE OF CONGRESS.—It is the sense of the Con5 gress that— 

6 (1) in order to provide the borrowers of Federal 

7 student loans with the option of converting their loans 

8 to income-contingent repayment by providing direct 

9 loans for the discharge of such loans (in this section 

10 referred to as ‘‘direct IDEA loans’’), the Secretary of 

11 Education and the Secretary of the Treasury will 

12 work together with the Government Accountability Of13 fice to develop a process by which the borrower will 

14 make payments on such loan using the income tax 

15 withholding system and will make appropriate ad16 justments to his or her withholding or estimated tax 

17 payments for such purposes; 

18 (2) the Secretaries shall determine— 

19 (A) whether such a repayment option would 

20 be beneficial to borrowers and taxpayers; and 

21 (B) how such program would be imple22 mented by the Departments of Education and 

23 Treasury; and 

24 (3) this process would— 


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1 (A) streamline the repayment process and 

2 provide greater flexibility for borrowers electing 

3 to use the direct IDEA loan; 

4 (B) significantly reduce the number of loan 

5 defaults by borrowers; and 

6 (C) significantly reduce the redundancy in 

7 reporting information pertaining to income-con8 tingent repayment to the Department of Edu9 cation, institutions, and applicants. 

10 (b) REPORT.—The Secretaries of Education and the 

11 Treasury shall, within one year after the date of enactment 

12 of this Act— 

13 (1) provide the Congress with information on the 

14 progress in devising the direct IDEA loan with in15 come-contingent repayment using the income tax 

16 withholding system; 

17 (2) inform the Congress of any necessary statu18 tory changes for the purpose of establishing a direct 

19 IDEA loan with income-contingent repayment using 

20 the income tax withholding system; and 

21 (3) consider international programs dem22 onstrating implementation of income-contingent re23 payment collected through revenue services, such as 

24 programs in England, Australia, and New Zealand. 


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1 PART D—SUSTAINING THE PERKINS LOAN 

2 PROGRAM 

3 SEC. 141. FEDERAL PERKINS LOANS. 

4 Section 461(b) (20 U.S.C. 1087aa(b)) is amended by 

5 adding at the end the following new paragraphs: 

6 ‘‘(3) In addition to any amounts appropriated 

7 pursuant to paragraph (1) or (2) of this subsection, 

8 there shall be available to the Secretary for contribu9 tions to student loan funds established under part E, 

10 from funds not otherwise appropriated, $100,000,000 

11 for each of the fiscal years 2008 through 2012. The 

12 sum of the amount made available under this sub13 section for any such fiscal year, plus the amount so 

14 appropriated for such fiscal year, shall, for purposes 

15 of allocations under section 462, be treated as the 

16 amount appropriated pursuant to section 461(b) for 

17 such fiscal year. 

18 ‘‘(4) The authority to make contributions to stu19 dent loan funds under this part shall expire at the 

20 end of fiscal year 2012.’’. 

21 TITLE II—REDUCING THE COST 

22 OF COLLEGE 

23 SEC. 201. STATE COMMITMENT TO AFFORDABLE COLLEGE 

24 EDUCATION. 

25 Title I is amended by inserting after section 131 (20 

26 U.S.C. 1015) the following new section: 


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

2 EDUCATION. 

3 ‘‘(a) MAINTENANCE OF EFFORT REQUIRED.—No State 

4 shall reduce the total amount provided by the State for pub5 lic institutions of higher education in such State for any 

6 academic year beginning on or after July 1, 2008, to an 

7 amount which is less than the average amount provided by 

8 such State to such institutions of higher education during 

9 the 5 most recent preceeding academic years for which satis10 factory data is available. 

11 ‘‘(b) WAIVER.—The Secretary may waive the require12 ments of this section, if the Secretary determines that such 

13 a waiver would be equitable due to exceptional or uncontrol14 lable circumstances, such as a natural disaster or a precipi15 tous and unforeseen decline in the financial resources of the 

16 State educational agency. 

17 ‘‘(c) WITHHOLDING OF ALL LEAP FUNDS FOR VIOLA18 TIONS.—Notwithstanding any other provision of law, the 

19 Secretary of Education shall withhold from any State that 

20 violates subsection (a) (except a State that receives a waiver 

21 under subsection (b)) any amount that would otherwise be 

22 available to the State under the Leveraging Educational As23 sistance Partnership Program under subpart 4 of part A 

24 of title IV until such State has corrected such violation.’’. 


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1 SEC. 202. CONSUMER INFORMATION AND PUBLIC ACCOUNT2 ABILITY IN HIGHER EDUCATION. 

3 Section 131 of the Higher Education Act of 1965 (20 

4 U.S.C. 1015) is amended to read as follows: 

5 ‘‘SEC. 131. CONSUMER INFORMATION AND PUBLIC AC6 COUNTABILITY IN HIGHER EDUCATION. 

7 ‘‘(a) COLLEGE OPPORTUNITY ON-LINE (COOL) 

8 WEBSITE RE-DESIGN PROCESS.—In carrying out this sec9 tion, the Commissioner of Education Statistics— 

10 ‘‘(1) shall identify the data elements related to 

11 college costs that are of greatest importance to pro12 spective students, enrolled students, and their fami13 lies, paying particular attention to low-income, non14 traditional student populations, and first-generation 

15 college students; 

16 ‘‘(2) shall convene a group of individuals with 

17 expertise in the collection and reporting of data re18 lated to institutions of higher education, the use of 

19 consumer data, and consumer marketing in general 

20 to— 

21 ‘‘(A) determine the relevance of particular 

22 data elements to prospective students, enrolled 

23 students, and families; 

24 ‘‘(B) assess the cost-effectiveness of various 

25 ways in which institutions of higher education 

26 might produce relevant data; 


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1 ‘‘(C) determine the general comparability of 

2 the data across institutions of higher education; 

3 and 

4 ‘‘(D) make recommendations regarding the 

5 inclusion of specific data items and the most ef6 fective and least burdensome methods of col7 lecting and reporting useful data from institu8 tions of higher education; and 

9 ‘‘(3) shall ensure that the redesigned COOL 

10 website— 

11 ‘‘(A) uses, to the extent practicable, data ele12 ments currently provided by institutions of high13 er education to the Secretary; 

14 ‘‘(B) includes clear and uniform informa15 tion determined to be relevant to prospective stu16 dents, enrolled students, and families; 

17 ‘‘(C) provides comparable information, by 

18 ensuring that data are based on accepted criteria 

19 and common definitions; 

20 ‘‘(D) includes a sorting function that per21 mits users to customize their search for and com22 parison of institutions of higher education based 

23 on the information identified through the process 

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1 est relevance to choosing an institution of higher 

2 education. 

3 ‘‘(b) DATA COLLECTION.— 

4 ‘‘(1) DATA SYSTEM.—The Commissioner of Edu5 cation Statistics shall continue to redesign the rel6 evant parts of the Integrated Postsecondary Edu7 cation Data System to include additional data as re8 quired by this section and to continue to improve the 

9 usefulness and timeliness of data collected by such 

10 System in order to inform consumers about institu11 tions of higher education. 

12 ‘‘(2) COLLEGE CONSUMER PROFILE.—The Sec13 retary shall continue to publish on the COOL website, 

14 for each academic year and in accordance with stand15 ard definitions developed by the Commissioner of 

16 Education Statistics (including definitions developed 

17 under section 131(a)(3)(A) as in effect on the day be18 fore the date of enactment of the College Cost Reduc19 tion Act of 2007), from at least all institutions of 

20 higher education participating in programs under 

21 title IV the following information: 

22 ‘‘(A) The tuition and fees charged for a 

23 first-time, full-time undergraduate student. 

24 ‘‘(B) The room and board charges for a 

25 first-time, full-time undergraduate student. 


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1 ‘‘(C) The price of attendance for a first2 time, full-time undergraduate student, consistent 

3 with the provisions of section 472. 

4 ‘‘(D) The average amount of financial as5 sistance received by a first-year, full-time under6 graduate student, including— 

7 ‘‘(i) each type of assistance or benefits 

8 described in 428(a)(2)(C)(ii); 

9 ‘‘(ii) institutional and other assistance; 

10 and 

11 ‘‘(iii) Federal loans under parts B, D, 

12 and E of title IV. 

13 ‘‘(E) The number of first-time, full-time un14 dergraduate students receiving financial assist15 ance described in each clause of subparagraph 

16 (D). 

17 ‘‘(F) The institutional instructional expend18 iture per full-time equivalent student. 

19 ‘‘(G) Student enrollment information, in20 cluding information on the number and percent21 age of full-time and part-time students, and the 

22 number and percentage of resident and non-resi23 dent students. 

24 ‘‘(H) Faculty-to-student ratios. 


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1 ‘‘(I) Faculty information, including the 

2 total number of faculty and the percentage of 

3 faculty who are full-time employees of the insti4 tution and the percentage who are part-time. 

5 ‘‘(J) Completion and graduation rates of 

6 undergraduate students, identifying whether the 

7 completion or graduation rates are from a 2- 

8 year or 4-year program of instruction and, in 

9 the case of a 2-year program of instruction, the 

10 percentage of students who transfer to 4-year in11 stitutions prior or subsequent to completion or 

12 graduation. 

13 ‘‘(K) A link to the institution of higher edu14 cation with information of interest to students 

15 including mission, accreditation, student services 

16 (including services for students with disabilities), 

17 transfer of credit policies, any articulation 

18 agreements entered into by the institution, and, 

19 if appropriate, placement rates and other meas20 ures of success in preparing students for entry 

21 into or advancement in the workforce. 

22 ‘‘(L) The college affordability information 

23 elements specified in subsection (c). 

24 ‘‘(M) Any additional information that the 

25 Secretary may require. 


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1 ‘‘(c) COLLEGE AFFORDABILITY INFORMATION ELE2 MENTS.—The college affordability information elements re3 quired by subsection (b)(2)(L) shall include, for each insti4 tution submitting data— 

5 ‘‘(1) the sticker price of the institution for the 3 

6 most recent academic years; 

7 ‘‘(2) the net tuition price of the institution for 

8 the 3 most recent academic years; 

9 ‘‘(3) the percentage change in both the sticker 

10 price and the net tuition price over the 3-year time 

11 period that is being reported; 

12 ‘‘(4) the percentage change in the higher edu13 cation price index (as defined in section 401B(d)) 

14 over the same 3-year time period; and 

15 ‘‘(5) whether the institution has been placed on 

16 affordability alert status as required by subsection 

17 (d)(2). 

18 ‘‘(d) OUTCOMES AND ACTIONS.— 

19 ‘‘(1) RESPONSE FROM INSTITUTION.—Effective 

20 on June 30, 2008, an institution that increases its 

21 sticker price at a percentage rate for any 3-year in22 terval ending on or after that date that exceeds two 

23 times the rate of change in the higher education price 

24 index (as defined in section 401B(d)) over the same 

25 time period shall provide a report to the Secretary, in 


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1 such a form, at such time, and containing such infor2 mation as the Secretary may require. Such report 

3 shall be published by the Secretary on the COOL 

4 website, and shall include— 

5 ‘‘(A) a description of the factors contrib6 uting to the increase in the institution’s costs 

7 and in the tuition and fees charged to students; 

8 and 

9 ‘‘(B) if determinations of tuition and fee in10 creases are not within the exclusive control of the 

11 institution, a description of the agency or instru12 mentality of State government or other entity 

13 that participates in such determinations and the 

14 authority exercised by such agency, instrumen15 tality, or entity. 

16 ‘‘(2) CONSEQUENCES FOR 2-YEAR CONTINUATION

17 OF FAILURE.—If the Secretary determines that an in18 stitution that is subject to paragraph (1) has failed 

19 to reduce the subsequent increase in sticker price to 

20 equal to or below two times the rate of change in the 

21 higher education price index (as defined in section 

22 401B(d)) for 2 consecutive academic years subsequent 

23 to the 3-year interval used under paragraph (1), the 

24 Secretary shall place the institution on affordability 

25 alert status. 


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1 ‘‘(3) EXEMPTIONS.—Notwithstanding paragraph 

2 (2), an institution shall not be placed on affordability 

3 alert status if, for any 3-year interval for which stick4 er prices are computed under paragraph (1)— 

5 ‘‘(A) with respect to the class of institutions 

6 described in paragraph (5) to which the institu7 tion belongs, the sticker price of the institution 

8 is in the lowest quartile of institutions within 

9 such class, as determined by the Secretary, dur10 ing the last year of such 3-year interval; or 

11 ‘‘(B) the institution has a percentage 

12 change in its sticker price computed under para13 graph (1) that exceeds two times the rate of 

14 change in the higher education price index (as 

15 defined in section 401B(d)) over the same time 

16 period, but the dollar amount of the sticker price 

17 increase is less than $500. 

18 ‘‘(4) INFORMATION TO STATE AGENCIES.—Any 

19 institution that reports under paragraph (1)(B) that 

20 an agency or instrumentality of State government or 

21 other entity participates in the determinations of tui22 tion and fee increases shall, prior to submitting any 

23 information to the Secretary under this subsection, 

24 submit such information to, and request the comments 

25 and input of, such agency, instrumentality, or entity. 


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1 With respect to any such institution, the Secretary 

2 shall provide a copy of any communication by the 

3 Secretary with that institution to such agency, in4 strumentality, or entity. 

5 ‘‘(5) CLASSES OF INSTITUTIONS.—For purposes 

6 of this subsection, the classes of institutions shall be 

7 those sectors used by the Integrated Postsecondary 

8 Education Data System, based on whether the insti9 tution is public, nonprofit private, or for-profit pri10 vate, and whether the institution has a 4-year, 2-year, 

11 or less than 2-year program of instruction. 

12 ‘‘(6) DATA REJECTION.—Nothing in this sub13 section shall be construed as allowing the Secretary to 

14 reject the data submitted by an individual institution 

15 of higher education. 

16 ‘‘(e) INFORMATION TO THE PUBLIC.—The Secretary 

17 shall work with public and private entities to promote 

18 broad public awareness, particularly among middle and 

19 high school students and their families, of the information 

20 made available under this section, including by distribution 

21 to students who participate in or receive benefits from 

22 means-tested federally funded education programs and 

23 other Federal programs determined by the Secretary. 

24 ‘‘(f) FINES.—In addition to actions authorized in sec25 tion 487(c), the Secretary may impose a fine in an amount 


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1 not to exceed $25,000 on an institution of higher education 

2 for failing to provide the information required by this sec3 tion in a timely and accurate manner, or for failing to 

4 otherwise cooperate with the National Center for Education 

5 Statistics regarding efforts to obtain data under subsection 

6 (c) and pursuant to the program participation agreement 

7 entered into under section 487. 

8 ‘‘(g) REGULATIONS.—The Secretary is authorized to 

9 issue such regulations as may be necessary to carry out the 

10 provisions of this section. 

11 ‘‘(h) DEFINITIONS.—For the purposes of this section: 

12 ‘‘(1) NET TUITION PRICE.—The term ‘net tuition 

13 price’ means the sticker price, minus the average 

14 grants provided to such students, for any academic 

15 year. 

16 ‘‘(2) STICKER PRICE.—The term ‘sticker price’ 

17 means the average tuition and fees charged to a first18 time, full-time, full-year undergraduate student by an 

19 institution of higher education for any academic 

20 year.’’. 

21 SEC. 203. INCENTIVES AND REWARDS FOR LOW TUITION. 

22 Subpart 1 of part A of title IV is amended by inserting 

23 after section 401A (20 U.S.C. 1070a–1) the following new 

24 section: 


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1 ‘‘SEC. 401B. INCENTIVES AND REWARDS FOR LOW TUITION. 

2 ‘‘(a) REWARDS FOR LOW TUITION.—For an institu3 tion of higher education that, for academic year 2008–2009 

4 or any succeeding academic year, has an annual net tuition 

5 price increase (expressed as a percentage) for the most re6 cent academic year for which satisfactory data is available 

7 that is equal to or less than the percentage change in the 

8 higher education price index for such academic year, the 

9 Secretary shall provide such institution an amount suffi10 cient to provide a 25 percent increase under subpart 1 of 

11 part A of title IV to each Pell Grant recipient attending 

12 such institution for the next award year beginning after 

13 the date of such determination. Each such institution shall 

14 distribute any amounts received under this subsection 

15 among such Pell Grant recipients by increasing the amount 

16 of their Pell Grant awards by 25 percent. 

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

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

19 education that the Secretary of Education determines 

20 complies with the requirements of paragraph (2) or 

21 (3) of this subsection, the Secretary shall provide to 

22 such institution a bonus amount equal to 25 percent 

23 of the aggregate amount of aid received by students 

24 at the institution under section 401(a). Such institu25 tion shall award the bonus amount to the Pell Grant 

26 recipients who were in attendance at the institution 


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1 during the award year that such institution satisfied 

2 the eligibility criteria for maintaining low tuition 

3 and fees. Each such student shall receive an amount 

4 that equals 25 percent of their total Pell Grant award 

5 for such award year, except that no student shall 

6 recieve an amount under this section that would 

7 cause the amount of total financial aid received by 

8 such student to exceed the cost of attendance of the in9 stitution. If there are additional funds remaining 

10 after all eligible students have been paid from the 

11 bonus amount, the institution shall award all excess 

12 funds first to remaining Pell Grant recipients who 

13 were not in attendance at the institution during such 

14 award year, and then to other eligible students under 

15 this title in attendance at such institution in the form 

16 of need-based aid. 

17 ‘‘(2) 4-YEAR INSTITUTIONS.—An institution of 

18 higher education that provides a program of instruc19 tion for which it awards a bachelor’s degree complies 

20 with the requirements of this paragraph if such insti21 tution guarantees that for any academic year begin22 ning on or after July 1, 2008, and for each of the 4 

23 succeeding continuous academic years, the net tuition 

24 price charged to an undergraduate student will not 

25 exceed— 


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

2 charged for an academic year at the time he or 

3 she first enrolled in the institution of higher edu4 cation, plus 

5 ‘‘(B) the product of the percentage increase 

6 in the higher education price index for the prior 

7 academic year, or the most recent prior aca8 demic year for which data is available, multi9 plied by the amount determined under subpara10 graph (A). 

11 ‘‘(3) LESS-THAN 4-YEAR INSTITUTIONS.—An in12 stitution of higher education that does not provide a 

13 program of instruction for which it awards a bach14 elor’s degree complies with the requirements of this 

15 paragraph if such institution guarantees that for any 

16 academic year (or the equivalent) beginning on or 

17 after July 1, 2008, and for each of the 1.5 succeeding 

18 continuous academic years, the net tuition price 

19 charged to an undergraduate student will not ex20 ceed— 

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

22 charged for an academic year at the time he or 

23 she first enrolled in the institution of higher edu24 cation, plus 


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1 ‘‘(B) the product of the percentage increase 

2 in the higher education price index for the prior 

3 academic year, or the most recent prior aca4 demic year for which data is available, multi5 plied by the amount determined under subpara6 graph (A). 

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

8 institution of higher education whose increase in the annual 

9 net tuition price (expressed as a percentage), for the most 

10 recent academic year for which satisfactory data is avail11 able, is greater than the percentage increase in the higher 

12 education price index for such academic year, the Secretary 

13 shall require such institution to submit to the Secretary the 

14 following information, within 6 months of such determina15 tion: 

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

17 net tuition price increase that outlines revenues and 

18 expenditures; and 

19 ‘‘(2) cost containment strategies to lower net tui20 tion prices. 

21 ‘‘(d) PRIORITY.—In awarding incentives and rewards 

22 under this section, the Secretary shall give priority to insti23 tutions of higher education with the lowest annual net tui24 tion price increase (expressed as a percentage) for the most 

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1 able, when compared with other institutions of higher edu2 cation with annual net tuition price increases that are 

3 equal to or less than the percentage change in the higher 

4 education price index for such academic year. 

5 ‘‘(e) DEFINITIONS.— 

6 ‘‘(1) NET TUITION PRICE.—The term ‘net tuition 

7 price’ has the same meaning as provided in section 

8 131(k). 

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

10 term ‘higher education price index’ means a statis11 tical measure of change over time in the prices of a 

12 fixed market basket of goods and services purchased 

13 by colleges and universities through current fund edu14 cational and general expenditures (excluding expendi15 tures for research), as developed by the Bureau of 

16 Labor Statistics. 

17 ‘‘(f) FUNDING.—There shall be available to the Sec18 retary to carry out this section, from funds not otherwise 

19 appropriated, $15,000,000 for each of the fiscal years 2008 

20 through 2012. 

21 ‘‘(g) SUNSET.—The authority to carry out this section 

22 shall expire at the end of fiscal year 2012.’’. 


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1 SEC. 204. COOPERATIVE EDUCATION REWARDS FOR INSTI2 TUTIONS THAT RESTRAIN TUITION IN3 CREASES. 

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

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

6 ‘‘TITLE VIII—COOPERATIVE EDU7 CATION REWARDS FOR INSTI8 TUTIONS THAT RESTRAIN 

9 TUITION INCREASES 

10 ‘‘SEC. 801. DEFINITION OF COOPERATIVE EDUCATION. 

11 ‘‘For the purpose of this title the term ‘cooperative edu12 cation’ means the provision of alternating or parallel peri13 ods of academic study and public or private employment 

14 in order to give students work experiences related to their 

15 academic or occupational objectives and an opportunity to 

16 earn the funds necessary for continuing and completing 

17 their education. 

18 ‘‘SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RES19 ERVATIONS. 

20 ‘‘(a) APPROPRIATIONS.—There shall be available to the 

21 Secretary to carry out this title from funds not otherwise 

22 appropriated $15,000,000 for each of the fiscal years 2008 

23 through 2012. 

24 ‘‘(b) RESERVATIONS.—Of the amount appropriated for 

25 each such fiscal year— 


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1 ‘‘(1) not less than 50 percent shall be available 

2 for carrying out grants to institutions of higher edu3 cation and combinations of such institutions de4 scribed in section 803(a)(1)(A) for cooperative edu5 cation under section 803; 

6 ‘‘(2) not less than 25 percent shall be available 

7 for carrying out grants to institutions of higher edu8 cation described in section 803(a)(1)(B) for coopera9 tive education under section 803; 

10 ‘‘(3) not more than 11 percent shall be available 

11 for demonstration projects under paragraph (1) of 

12 section 804(a); 

13 ‘‘(4) not more than 11 percent shall be available 

14 for training and resource centers under paragraph (2) 

15 of section 804(a); and 

16 ‘‘(5) not more than 3 percent shall be available 

17 for research under paragraph (3) of section 804(a). 

18 ‘‘(c) AVAILABILITY OF APPROPRIATIONS.—Appropria19 tions under this title shall not be available for the payment 

20 of compensation of students for employment by employers 

21 under arrangements pursuant to this title. 

22 ‘‘(d) SUNSET.—The authority to carry out this title 

23 shall expire at the end of fiscal year 2012. 

24 ‘‘SEC. 803. GRANTS FOR COOPERATIVE EDUCATION. 

25 ‘‘(a) GRANTS AUTHORIZED.— 


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1 ‘‘(1) IN GENERAL.—The Secretary is author2 ized— 

3 ‘‘(A) from the amount available under sec4 tion 802(b)(1) in each fiscal year and in accord5 ance with the provisions of this title, to make 

6 grants to institutions of higher education or 

7 combinations of such institutions that have not 

8 previously received a grant under this paragraph 

9 to pay the Federal share of the cost of planning, 

10 establishing, expanding, or carrying out pro11 grams of cooperative education by such institu12 tions or combinations of institutions; and 

13 ‘‘(B) from the amount available under sec14 tion 802(b)(2) in each fiscal year and in accord15 ance with the provisions of this title, to make 

16 grants to institutions of higher education that 

17 are operating an existing cooperative education 

18 program (as determined by the Secretary) to pay 

19 the cost of planning, establishing, expanding, or 

20 carrying out programs of cooperative education 

21 by such institutions. 

22 ‘‘(2) PROGRAM REQUIREMENT.—Cooperative 

23 education programs assisted under this section shall 

24 provide alternating or parallel periods of academic 

25 study and of public or private employment, giving 


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1 students work experience related to their academic or 

2 occupational objectives and the opportunity to earn 

3 the funds necessary for continuing and completing 

4 their education. 

5 ‘‘(3) AMOUNT OF GRANTS.— 

6 ‘‘(A) The amount of each grant awarded 

7 pursuant to paragraph (1)(A) to any institution 

8 of higher education or combination of such insti9 tutions in any fiscal year shall not exceed 

10 $500,000. 

11 ‘‘(B)(i) Except as provided in clauses (ii) 

12 and (iii), the Secretary shall award grants in 

13 each fiscal year to each institution of higher edu14 cation described in paragraph (1)(B) that has 

15 an application approved under subsection (b) in 

16 an amount which bears the same ratio to the 

17 amount reserved pursuant to section 802(b)(2) 

18 for such fiscal year as the number of 

19 unduplicated students placed in cooperative edu20 cation jobs during the preceding fiscal year 

21 (other than cooperative education jobs under sec22 tion 804 and as determined by the Secretary) by 

23 such institution of higher education bears to the 

24 total number of all such students placed in such 


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1 jobs during the preceding fiscal year by all such 

2 institutions. 

3 ‘‘(ii) No institution of higher education 

4 shall receive a grant pursuant to paragraph 

5 (1)(B) in any fiscal year in an amount which 

6 exceeds 25 percent of such institution’s coopera7 tive education program’s personnel and oper8 ating budget for the preceding fiscal year. 

9 ‘‘(iii) The minimum annual grant amount 

10 which an institution of higher education is eligi11 ble to receive under paragraph (1)(B) is $1,000 

12 and the maximum annual grant amount is 

13 $75,000. 

14 ‘‘(4) LIMITATION.—The Secretary shall not 

15 award grants pursuant to paragraphs (1)(A) and 

16 (1)(B) to the same institution of higher education or 

17 combination of such institution in any one fiscal 

18 year. 

19 ‘‘(5) USES.—Grants under paragraph (1)(B) 

20 shall be used exclusively— 

21 ‘‘(A) to expand the quality and participa22 tion of a cooperative education program; 

23 ‘‘(B) for outreach in new curricular areas; 

24 and 


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1 ‘‘(C) for outreach to potential participants 

2 including underrepresented and nontraditional 

3 populations. 

4 ‘‘(b) APPLICATIONS.—Each institution of higher edu5 cation or combination of such institutions desiring to re6 ceive a grant under this section shall submit an application 

7 to the Secretary at such time and in such manner as the 

8 Secretary shall prescribe. Each such application shall— 

9 ‘‘(1) set forth the program or activities for which 

10 a grant is authorized under this section; 

11 ‘‘(2) specify each portion of such program or ac12 tivities which will be performed by a nonprofit orga13 nization or institution other than the applicant, and 

14 the compensation to be paid for such performance; 

15 ‘‘(3) provide that the applicant will expend dur16 ing such fiscal year for the purpose of such program 

17 or activities not less than the amount expended for 

18 such purpose during the previous fiscal year; 

19 ‘‘(4) describe the plans which the applicant will 

20 carry out to assure, and contain a formal statement 

21 of the institution’s commitment which assures, that 

22 the applicant will continue the cooperative education 

23 program beyond the 5-year period of Federal assist24 ance described in subsection (c)(1) at a level which is 

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1 gram during the first year such program was assisted 

2 under this section; 

3 ‘‘(5) provide that, in the case of an institution 

4 of higher education that provides a 2-year program 

5 which is acceptable for full credit toward a bachelor’s 

6 degree, the cooperative education program will be 

7 available to students who are certificate or associate 

8 degree candidates and who carry at least one-half the 

9 normal full-time academic workload; 

10 ‘‘(6) provide that the applicant will— 

11 ‘‘(A) for each fiscal year for which the ap12 plicant receives a grant, make such reports with 

13 respect to the impact of the cooperative education 

14 program in the previous fiscal year as may be 

15 essential to ensure that the applicant is com16 plying with the provisions of this section, includ17 ing— 

18 ‘‘(i) the number of unduplicated stu19 dent applicants in the cooperative education 

20 program; 

21 ‘‘(ii) the number of unduplicated stu22 dents placed in cooperative education jobs; 

23 ‘‘(iii) the number of employers who 

24 have hired cooperative education students; 


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1 ‘‘(iv) the average income for students 

2 derived from working in cooperative edu3 cation jobs; and 

4 ‘‘(v) the increase or decrease in the 

5 number of unduplicated students placed in 

6 cooperative education jobs in each fiscal 

7 year compared to the previous fiscal year; 

8 and 

9 ‘‘(B) keep such records as are essential to 

10 ensure that the applicant is complying with the 

11 provisions of this title, including the notation of 

12 cooperative education employment on the stu13 dent’s transcript; 

14 ‘‘(7) describe the extent to which programs in the 

15 academic discipline for which the application is made 

16 have had a favorable reception by public and private 

17 sector employers; 

18 ‘‘(8) describe the extent to which the institution 

19 is committed to extending cooperative education on 

20 an institution-wide basis for all students who can 

21 benefit; 

22 ‘‘(9) describe the plans that the applicant will 

23 carry out to evaluate the applicant’s cooperative edu24 cation program at the end of the grant period; 


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1 ‘‘(10) provide for such fiscal control and fund ac2 counting procedures as may be necessary to assure 

3 proper disbursement of, and accounting for, Federal 

4 funds paid to the applicant under this title; 

5 ‘‘(11) demonstrate a commitment to serving all 

6 underserved populations; and 

7 ‘‘(12) include such other information as is essen8 tial to carry out the provisions of this title. 

9 ‘‘(c) DURATION OF GRANTS; FEDERAL SHARE.— 

10 ‘‘(1) DURATION OF GRANTS.—No individual in11 stitution of higher education may receive, individ12 ually or as a participant in a combination of such 

13 institutions— 

14 ‘‘(A) a grant pursuant to subsection 

15 (a)(1)(A) for more than 5 fiscal years; or 

16 ‘‘(B) a grant pursuant to subsection 

17 (a)(1)(B) for more than 5 fiscal years. 

18 ‘‘(2) FEDERAL SHARE.—The Federal share of a 

19 grant under section 803(a)(1)(A) may not exceed— 

20 ‘‘(A) 85 percent of the cost of carrying out 

21 the program or activities described in the appli22 cation in the first year the applicant receives a 

23 grant under this section; 

24 ‘‘(B) 70 percent of such cost in the second 

25 such year; 


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1 ‘‘(C) 55 percent of such cost in the third 

2 such year; 

3 ‘‘(D) 40 percent of such cost in the fourth 

4 such year; and 

5 ‘‘(E) 25 percent of such cost in the fifth 

6 such year. 

7 ‘‘(3) SPECIAL RULE.—Any provision of law to 

8 the contrary notwithstanding, the Secretary shall not 

9 waive the provisions of this subsection. 

10 ‘‘(d) MAINTENANCE OF EFFORT.—If the Secretary de11 termines that a recipient of funds under this section has 

12 failed to maintain the fiscal effort described in subsection 

13 (b)(3), then the Secretary may elect not to make grant pay14 ments under this section to such recipient. 

15 ‘‘SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; 

16 TRAINING AND RESOURCE CENTERS; AND RE17 SEARCH. 

18 ‘‘(a) AUTHORIZATION.—The Secretary is authorized, 

19 in accordance with the provisions of this section, to make 

20 grants and enter into contracts— 

21 ‘‘(1) from the amounts available in each fiscal 

22 year under section 802(b)(3), for the conduct of dem23 onstration projects designed to demonstrate or deter24 mine the feasibility or value of innovative methods of 

25 cooperative education; 


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1 ‘‘(2) from the amounts available in each fiscal 

2 year under section 802(b)(4), for the conduct of train3 ing and resource centers designed to— 

4 ‘‘(A) train personnel in the field of coopera5 tive education; 

6 ‘‘(B) improve materials used in cooperative 

7 education programs if such improvement is con8 ducted in conjunction with other activities de9 scribed in this paragraph; 

10 ‘‘(C) furnish technical assistance to institu11 tions of higher education to increase the poten12 tial of the institution to continue to conduct a 

13 cooperative education program without Federal 

14 assistance; 

15 ‘‘(D) encourage model cooperative education 

16 programs which furnish education and training 

17 in occupations in which there is a national need; 

18 ‘‘(E) support partnerships under which an 

19 institution carrying out a comprehensive cooper20 ative education program joins with one or more 

21 institutions of higher education in order to— 

22 ‘‘(i) assist the institutions other than 

23 the comprehensive cooperative education in24 stitution to develop and expand an existing 

25 program of cooperative education; or 


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1 ‘‘(ii) establish and improve or expand 

2 comprehensive cooperative education pro3 grams; and 

4 ‘‘(F) encourage model cooperative education 

5 programs in the fields of science and mathe6 matics for women and minorities who are under7 represented in such fields; and 

8 ‘‘(3) from the amounts available in each fiscal 

9 year under section 802(b)(5), for the conduct of re10 search relating to cooperative education. 

11 ‘‘(b) ADMINISTRATIVE PROVISION.— 

12 ‘‘(1) IN GENERAL.—To carry out this section, the 

13 Secretary may— 

14 ‘‘(A) make grants to or contracts with insti15 tutions of higher education, or combinations of 

16 such institutions; and 

17 ‘‘(B) make grants to or contracts with other 

18 public or private nonprofit agencies or organiza19 tions, whenever such grants or contracts will 

20 make an especially significant contribution to 

21 attaining the objectives of this section. 

22 ‘‘(2) LIMITATION.— 

23 ‘‘(A) The Secretary may not use more than 

24 3 percent of the amount appropriated to carry 

25 out this section in each fiscal year to make 


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1 grants or enter into contracts described in para2 graph (1)(A). 

3 ‘‘(B) The Secretary may use not more than 

4 3 percent of the amount appropriated to carry 

5 out this section in each fiscal year to make 

6 grants or enter into contracts described in para7 graph (1)(B). 

8 ‘‘(c) SUPPLEMENT NOT SUPPLANT.—A recipient of a 

9 grant or contract under this section may use the funds pro10 vided only to supplement and, to the extent possible, in11 crease the level of funds that would, in the absence of such 

12 funds, be made available from non-Federal sources to carry 

13 out the activities supported by such grant or contract, and 

14 in no case to supplant such funds from non-Federal 

15 sources.’’. 

16 TITLE III—ENSURING A HIGHLY 

17 QUALIFIED TEACHER IN 

18 EVERY CLASSROOM 

19 PART A—TEACH GRANTS 

20 SEC. 301. TEACH GRANTS. 

21 Part A of title IV (20 U.S.C. 1070a et seq.) is amended 

22 by adding at the end the following new subpart: 

23 ‘‘Subpart 9—TEACH Grants 

24 ‘‘SEC. 420L. PROGRAM ESTABLISHED. 

25 ‘‘(a) PROGRAM AUTHORITY.— 


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1 ‘‘(1) PAYMENTS REQUIRED.—The Secretary shall 

2 pay to each eligible institution such sums as may be 

3 necessary to pay to each eligible student (defined in 

4 accordance with section 484) who files an application 

5 and agreement in accordance with section 420M, and 

6 who qualifies— 

7 ‘‘(A) under paragraph (2) of section 

8 420M(a), a TEACH Grant in the amount of 

9 $4,000 for each academic year during which that 

10 student is in attendance at the institution; and 

11 ‘‘(B) under paragraphs (2) and (3) of sec12 tion 420M(a), a Bonus TEACH Grant in the 

13 amount of $500 (in addition to the amount of 

14 the TEACH Grant under subparagraph (A)) for 

15 each academic year during which that student so 

16 qualifies. 

17 ‘‘(2) REFERENCE.—Grants made under— 

18 ‘‘(A) paragraph (1)(A) shall be known as 

19 ‘Teacher Education Assistance for College and 

20 Higher Education Grants’ or ‘TEACH Grants’; 

21 and 

22 ‘‘(B) paragraph (1)(B) shall be known as 

23 Bonus TEACH Grants. 

24 ‘‘(b) PAYMENT METHODOLOGY.— 


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1 ‘‘(1) PREPAYMENT.—Not less than 85 percent of 

2 any funds provided to an institution under subsection 

3 (a) shall be advanced to eligible institutions prior to 

4 the start of each payment period and shall be based 

5 upon an amount requested by the institution as need6 ed to pay eligible students until such time as the Sec7 retary determines and publishes in the Federal Reg8 ister with an opportunity for comment, an alternative 

9 payment system that provides payments to institu10 tions in an accurate and timely manner, except that 

11 this sentence shall not be construed to limit the au12 thority of the Secretary to place an institution on a 

13 reimbursement system of payment. 

14 ‘‘(2) DIRECT PAYMENT.—Nothing in this section 

15 shall be interpreted to prohibit the Secretary from 

16 paying directly to students, in advance of the begin17 ning of the academic term, an amount for which they 

18 are eligible, in cases where the eligible institution 

19 elects not to participate in the disbursement system 

20 required by paragraph (1). 

21 ‘‘(3) DISTRIBUTION OF GRANTS TO STUDENTS.— 

22 Payments under this subpart shall be made, in ac23 cordance with regulations promulgated by the Sec24 retary for such purpose, in such manner as will best 

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1 bursement allowed to be made by crediting the stu2 dent’s account shall be limited to tuition and fees 

3 and, in the case of institutionally-owned housing, 

4 room and board. The student may elect to have the 

5 institution provide other such goods and services by 

6 crediting the student’s account. 

7 ‘‘(c) REDUCTIONS IN AMOUNT.— 

8 ‘‘(1) PART-TIME STUDENTS.—In any case where 

9 a student attends an institution of higher education 

10 on less than a full-time basis (including a student 

11 who attends an institution of higher education on less 

12 than a half-time basis) during any academic year, 

13 the amount of a grant under this subpart for which 

14 that student is eligible shall be reduced in proportion 

15 to the degree to which that student is not attending 

16 on a full-time basis, in accordance with a schedule of 

17 reductions established by the Secretary for the pur18 poses of this subpart, computed in accordance with 

19 this subpart. Such schedule of reductions shall be es20 tablished by regulation and published in the Federal 

21 Register in accordance with section 482 of this Act. 

22 ‘‘(2) NO EXCEEDING COST.—The amount of a 

23 grant awarded under this subpart, in combination 

24 with Federal assistance and other student assistance, 

25 shall not exceed the cost of attendance (as defined in 


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1 section 472) at the institution at which that student 

2 is in attendance. If, with respect to any student, it 

3 is determined that the amount of a TEACH Grant or 

4 a Bonus TEACH Grant exceeds the cost of attendance 

5 for that year, the amount of the TEACH Grant or 

6 Bonus TEACH Grant, respectively, shall be reduced 

7 until such grant does not exceed the cost of attendance 

8 at such institution. 

9 ‘‘(d) PERIOD OF ELIGIBILITY FOR GRANTS.— 

10 ‘‘(1) UNDERGRADUATE STUDENTS.—The period 

11 during which an undergraduate student may receive 

12 grants under this subpart shall be the period required 

13 for the completion of the first undergraduate bacca14 laureate course of study being pursued by that student 

15 at the institution at which the student is in attend16 ance except that— 

17 ‘‘(A) any period during which the student is 

18 enrolled in a noncredit or remedial course of 

19 study as defined in paragraph (3) shall not be 

20 counted for the purpose of this paragraph; and 

21 ‘‘(B) the total amount that a student may 

22 receive under this subpart for undergraduate 

23 study shall not exceed $16,000 with respect to a 

24 student who receives only TEACH Grants, and 


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1 $18,000 with respect to a student who receives 

2 TEACH Grants and Bonus TEACH Grants. 

3 ‘‘(2) GRADUATE STUDENTS.—The period during 

4 which a graduate student may receive grants under 

5 this subpart shall be the period required for the com6 pletion of a master’s degree course of study being pur7 sued by that student at the institution at which the 

8 student is in attendance, except that the total amount 

9 that a student may receive under this subpart for 

10 graduate study shall not exceed $8,000 with respect to 

11 a student who receives only TEACH Grants, and 

12 $10,000 with respect to a student who receives 

13 TEACH Grants and Bonus TEACH Grants. 

14 ‘‘(3) REMEDIAL COURSE; STUDY ABROAD.—Noth15 ing in this section shall exclude from eligibility 

16 courses of study which are noncredit or remedial in 

17 nature (including courses in English language acqui18 sition) which are determined by the institution to be 

19 necessary to help the student be prepared for the pur20 suit of a first undergraduate baccalaureate degree or 

21 certificate or, in the case of courses in English lan22 guage instruction, to be necessary to enable the stu23 dent to utilize already existing knowledge, training, 

24 or skills. Nothing in this section shall exclude from 

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1 proved for credit by the home institution at which the 

2 student is enrolled. 

3 ‘‘SEC. 420M. ELIGIBILITY; APPLICATIONS. 

4 ‘‘(a) APPLICATIONS; DEMONSTRATION OF ELIGI5 BILITY.— 

6 ‘‘(1) FILING REQUIRED.—The Secretary shall 

7 from time to time set dates by which students shall 

8 file applications for grants under this subpart. Each 

9 student desiring a grant under this subpart for any 

10 year shall file an application containing such infor11 mation and assurances as the Secretary may deem 

12 necessary to enable the Secretary to carry out the 

13 functions and responsibilities of this subpart. 

14 ‘‘(2) DEMONSTRATION OF TEACH GRANT ELIGI15 BILITY.—Each application submitted under para16 graph (1) for a TEACH Grant shall contain such in17 formation as is necessary to demonstrate that— 

18 ‘‘(A) if the applicant is an enrolled stu19 dent— 

20 ‘‘(i) the student is an eligible student 

21 for purposes of section 484; 

22 ‘‘(ii) the student— 

23 ‘‘(I) has a grade point average 

24 that is determined, under standards 

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1 parable to a 3.25 average on a zero to 

2 4.0 scale, except that, if the student is 

3 in the first year of a program of un4 dergraduate education, such grade 

5 point average shall be determined on 

6 the basis of the student’s cumulative 

7 high school grade point average; or 

8 ‘‘(II) displayed high academic ap9 titude by receiving a score above the 

10 75th percentile on at least one of the 

11 batteries in an undergraduate or grad12 uate school admissions test; and 

13 ‘‘(iii) the student is completing 

14 coursework and other requirements nec15 essary to begin a career in teaching, or 

16 plans to complete such coursework and re17 quirements prior to graduating; or 

18 ‘‘(B) if the applicant is a current or pro19 spective teacher applying for a grant to obtain 

20 a graduate degree— 

21 ‘‘(i) the applicant is a teacher or a re22 tiree from another occupation with expertise 

23 in a field in which there is a shortage of 

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1 cation, English language acquisition, or an2 other high-need subject; or 

3 ‘‘(ii) the applicant is or was a teacher 

4 who is using high-quality alternative cer5 tification routes, such as Teach for America, 

6 to get certified. 

7 ‘‘(3) DEMONSTRATION OF BONUS TEACH GRANT

8 ELIGIBILITY.—Each application submitted under 

9 paragraph (1) for a Bonus TEACH Grant shall con10 tain such information as is necessary to demonstrate 

11 that the applicant is— 

12 ‘‘(A) eligible for, and has applied for, a 

13 TEACH Grant; and 

14 ‘‘(B) a student enrolled in a qualified teach15 er preparation program, as defined in section 

16 420N. 

17 ‘‘(b) AGREEMENTS TO SERVE.—Each application 

18 under subsection (a) shall contain or be accompanied by 

19 an agreement by the applicant that— 

20 ‘‘(1) the applicant will— 

21 ‘‘(A) serve as a full-time teacher for a total 

22 of not less than 4 academic years within 8 years 

23 after completing the course of study for which the 

24 applicant received a TEACH Grant under this 

25 subpart; 


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1 ‘‘(B) teach in a school described in section 

2 465(a)(2)(A); 

3 ‘‘(C) with respect to an applicant for— 

4 ‘‘(i) TEACH Grants, teach in any of 

5 the following fields: mathematics, science, a 

6 foreign language, bilingual education, or 

7 special education, or as a reading specialist, 

8 or another field documented as high-need by 

9 the Federal Government, State government, 

10 or local education agency and approved by 

11 the Secretary; or 

12 ‘‘(ii) TEACH Grants and Bonus 

13 TEACH Grants, teach mathematics, science, 

14 or a science-related field; 

15 ‘‘(D) submit evidence of such employment 

16 in the form of a certification by the chief admin17 istrative officer of the school upon completion of 

18 each year of such service; and 

19 ‘‘(E) comply with the requirements for 

20 being a highly qualified teacher as defined in 

21 section 9101 of the Elementary and Secondary 

22 Education Act of 1965; and 

23 ‘‘(2) in the event that the applicant is deter24 mined to have failed or refused to carry out such serv25 ice obligation, the sum of the amounts of any TEACH 


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1 Grants and Bonus TEACH Grants received by such 

2 applicant will be treated as a loan and collected from 

3 the applicant in accordance with subsection (c) and 

4 the regulations thereunder. 

5 ‘‘(c) REPAYMENT FOR FAILURE TO COMPLETE SERV6 ICE.—In the event that any recipient of a grant under this 

7 subpart fails or refuses to comply with the service obligation 

8 in the agreement under subsection (b), the sum of the 

9 amounts of any TEACH Grants and Bonus TEACH 

10 Grants received by such recipient shall be treated as a Di11 rect Loan under part D of title IV, and shall be subject 

12 to repayment, together with interest thereon accruing after 

13 the period of service, in accordance with terms and condi14 tions specified by the Secretary in regulations under this 

15 subpart. 

16 ‘‘SEC. 420N. DEFINITIONS. 

17 ‘‘For the purposes of this subpart: 

18 ‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligible 

19 institution’ means an institution of higher education 

20 as defined in section 102. 

21 ‘‘(2) QUALIFIED TEACHER PREPARATION PRO22 GRAM.—The term ‘qualified teacher preparation pro23 gram’ means a program for students and teachers de24 scribed in subparagraph (A) or (B) of section 


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1 420M(a)(2) (referred to jointly in this paragraph as 

2 ‘teacher candidates’) that— 

3 ‘‘(A) recruits and prepares teacher can4 didates who major in science, technology fields, 

5 special education, foreign language, engineering, 

6 or mathematics disciplines to become certified as 

7 elementary and secondary teachers in those dis8 ciplines, special education teachers, or teachers of 

9 English Language Learners, with the goals of 

10 improving teacher knowledge and effectiveness 

11 and increasing elementary and secondary stu12 dent academic achievement; 

13 ‘‘(B) is implemented by an institution of 

14 higher education in partnership with high-need 

15 local educational agencies; 

16 ‘‘(C) offers a baccalaureate degree with a 

17 concurrent teacher certification to teacher can18 didates; 

19 ‘‘(D) is implemented in coordination with 

20 the faculty of the relevant departments of the in21 stitution of higher education; 

22 ‘‘(E) utilizes experienced teachers who have 

23 a demonstrated record of success in teaching un24 derserved students to instruct teacher candidates 

25 in the disciplines described in subparagraph (A); 


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1 ‘‘(F) provides teacher candidates with— 

2 ‘‘(i) support services, including men3 toring by experienced teachers who have a 

4 demonstrated record of success in teaching 

5 underserved students; 

6 ‘‘(ii) exposure to, and field experience 

7 in, the classroom within the first year of en8 tering the qualified teacher preparation 

9 program; and 

10 ‘‘(iii) other related support practices 

11 while the teacher candidates are partici12 pating in the program, and after such can13 didates graduate from the institution of 

14 higher education and are employed as 

15 teachers; 

16 ‘‘(G) participates in partnerships which in17 clude the institution of higher education and 

18 local educational agencies and charter districts 

19 to provide opportunities for teacher candidate 

20 field work; 

21 ‘‘(H) focuses on increasing the number of 

22 teachers in the disciplines described in subpara23 graph (A); and 


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1 ‘‘(I) encourages individuals from underrep2 resented populations to enter into the teaching 

3 profession. 

4 ‘‘SEC. 420O. PROGRAM PERIOD AND FUNDING. 

5 ‘‘There shall be available to the Secretary to carry out 

6 this subpart, from funds not otherwise appropriated, such 

7 sums as may be necessary to provide TEACH Grants and 

8 Bonus TEACH Grants in accordance with this subpart to 

9 each eligible applicant.’’. 

10 PART B—CENTERS OF EXCELLENCE 

11 SEC. 311. CENTERS OF EXCELLENCE. 

12 Title II (20 U.S.C. 1021 et seq.) is amended by adding 

13 at the end the following: 

14 ‘‘PART C—CENTERS OF EXCELLENCE 

15 ‘‘SEC. 231. DEFINITIONS. 

16 ‘‘As used in this part: 

17 ‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligible 

18 institution’ means— 

19 ‘‘(A) an institution of higher education that 

20 has a teacher preparation program that meets 

21 the requirements of section 203(b)(2)and that 

22 is— 

23 ‘‘(i) a part B institution (as defined in 

24 section 322); 


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1 ‘‘(ii) a Hispanic-serving institution 

2 (as defined in section 502); 

3 ‘‘(iii) a Tribal College or University 

4 (as defined in section 316); 

5 ‘‘(iv) an Alaska Native-serving institu6 tion (as defined in section 317(b)); or 

7 ‘‘(v) a Native Hawaiian-serving insti8 tution (as defined in section 317(b)); 

9 ‘‘(B) a consortium of institutions described 

10 in subparagraph (A); or 

11 ‘‘(C) an institution described in subpara12 graph (A), or a consortium described in subpara13 graph (B), in partnership with any other insti14 tution of higher education, but only if the center 

15 of excellence established under section 232 is lo16 cated at an institution described in subpara17 graph (A). 

18 ‘‘(2) HIGHLY QUALIFIED.—The term ‘highly 

19 qualified’ when used with respect to an individual 

20 means that the individual is highly qualified as deter21 mined under section 9101 of the Elementary and Sec22 ondary Education Act of 1965 (20 U.S.C. 7801) or 

23 section 602 of the Individuals with Disabilities Edu24 cation Act (20 U.S.C. 1401). 


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1 ‘‘(3) SCIENTIFICALLY BASED READING RE2 SEARCH.—The term ‘scientifically based reading re3 search’ has the meaning given such term in section 

4 1208 of the Elementary and Secondary Education 

5 Act of 1965 (20 U.S.C. 6368). 

6 ‘‘(4) SCIENTIFICALLY BASED RESEARCH.—The 

7 term ‘scientifically based research’ has the meaning 

8 given such term in section 9101 of the Elementary 

9 and Secondary Education Act of 1965 (20 U.S.C. 

10 7801). 

11 ‘‘SEC. 232. CENTERS OF EXCELLENCE. 

12 ‘‘(a) PROGRAM AUTHORIZED.—From the amounts ap13 propriated to carry out this part, the Secretary is author14 ized to award competitive grants to eligible institutions to 

15 establish centers of excellence. 

16 ‘‘(b) USE OF FUNDS.—Grants provided by the Sec17 retary under this part shall be used to ensure that current 

18 and future teachers are highly qualified, by carrying out 

19 one or more of the following activities: 

20 ‘‘(1) Implementing reforms within teacher prepa21 ration programs to ensure that such programs are 

22 preparing teachers who are highly qualified, are able 

23 to understand scientifically based research, and are 

24 able to use advanced technology effectively in the 


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1 classroom, including use for instructional techniques 

2 to improve student academic achievement, by— 

3 ‘‘(A) retraining faculty; and 

4 ‘‘(B) designing (or redesigning) teacher 

5 preparation programs that— 

6 ‘‘(i) prepare teachers to close student 

7 achievement gaps, are based on rigorous 

8 academic content, scientifically based re9 search (including scientifically based read10 ing research), and challenging State student 

11 academic content standards; and 

12 ‘‘(ii) promote strong teaching skills. 

13 ‘‘(2) Providing sustained and high-quality 

14 preservice clinical experience, including the men15 toring of prospective teachers by exemplary teachers, 

16 substantially increasing interaction between faculty 

17 at institutions of higher education and new and expe18 rienced teachers, principals, and other administrators 

19 at elementary schools or secondary schools, and pro20 viding support, including preparation time, for such 

21 interaction. 

22 ‘‘(3) Developing and implementing initiatives to 

23 promote retention of highly qualified teachers and 

24 principals, including minority teachers and prin25 cipals, including programs that provide— 


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1 ‘‘(A) teacher or principal mentoring from 

2 exemplary teachers or principals; or 

3 ‘‘(B) induction and support for teachers 

4 and principals during their first 3 years of em5 ployment as teachers or principals, respectively. 

6 ‘‘(4) Awarding scholarships based on financial 

7 need to help students pay the costs of tuition, room, 

8 board, and other expenses of completing a teacher 

9 preparation program. 

10 ‘‘(5) Disseminating information on effective 

11 practices for teacher preparation and successful teach12 er certification and licensure assessment preparation 

13 strategies. 

14 ‘‘(6) Activities authorized under sections 202, 

15 203, and 204. 

16 ‘‘(c) APPLICATION.—Any eligible institution desiring 

17 a grant under this section shall submit an application to 

18 the Secretary at such a time, in such a manner, and accom19 panied by such information as the Secretary may require. 

20 ‘‘(d) MINIMUM GRANT AMOUNT.—The minimum 

21 amount of each grant under this part shall be $500,000. 

22 ‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.—An 

23 eligible institution that receives a grant under this part 

24 may not use more than 2 percent of the grant funds for 

25 purposes of administering the grant. 


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1 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

2 such regulations as may be necessary to carry out this part. 

3 ‘‘SEC. 233. APPROPRIATIONS. 

4 ‘‘There shall be available to the Secretary, from funds 

5 not otherwise appropriated, $50,000,000 for the period be6 ginning with fiscal year 2008 and ending with fiscal year 

7 2012, to carry out this part beginning with academic year 

8 2008–2009, which shall remain available until expended. 

9 The authority to carry out this part shall expire at the end 

10 of fiscal year 2012.’’. 

11 TITLE IV—LEVERAGING FUNDS 

12 TO INCREASE COLLEGE ACCESS 

13 PART A—STRENGTHENING HISTORICALLY BLACK 

14 COLLEGES AND UNIVERSITIES AND MINOR15 ITY-SERVING INSTITUTIONS 

16 SEC. 401. INVESTMENT IN HISTORICALLY BLACK COLLEGES 

17 AND UNIVERSITIES AND MINORITY-SERVING 

18 INSTITUTION. 

19 Title IV is amended by adding at the end the following 

20 new part: 


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1 ‘‘PART I—STRENGTHENING HISTORICALLY 

2 BLACK COLLEGES AND UNIVERSITIES AND 

3 OTHER MINORITY-SERVING INSTITUTIONS 

4 ‘‘SEC. 499A. INVESTMENT IN HISTORICALLY BLACK COL5 LEGES AND UNIVERSITIES AND OTHER MI6 NORITY-SERVING INSTITUTION. 

7 ‘‘(a) ELIGIBLE INSTITUTION.—An institution of high8 er education is eligible to receive funds from the amounts 

9 made available under this section if such institution is— 

10 ‘‘(1) a part B institution (as defined in section 

11 322 (20 U.S.C. 1061)); 

12 ‘‘(2) a Hispanic-serving institution (as defined 

13 in section 502 (20 U.S.C. 1101a)); 

14 ‘‘(3) a Tribal College or University (as defined 

15 in section 316 (20 U.S.C. 1059c)); 

16 ‘‘(4) an Alaska Native-serving institution or a 

17 Native Hawaiian-serving institution (as defined in 

18 section 317(b) (20 U.S.C. 1059d(b))); 

19 ‘‘(5) a Predominantly Black Institution (as de20 fined in subsection (c)); or 

21 ‘‘(6) an Asian and Pacific Islander-serving insti22 tution (as defined in subsection (c)). 

23 ‘‘(b) NEW INVESTMENT OF FUNDS.— 

24 ‘‘(1) IN GENERAL.—There shall be available to 

25 the Secretary to carry out this section, from funds not 

26 otherwise appropriated, $100,000,000 for each of the 


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1 fiscal years 2008 through 2012. The authority to 

2 carry out this section shall expire at the end of fiscal 

3 year 2012. 

4 ‘‘(2) ALLOCATION AND ALLOTMENT.— 

5 ‘‘(A) IN GENERAL.—Of the amounts made 

6 available under paragraph (1) for any fiscal 

7 year— 

8 ‘‘(i) 40 percent shall be available for 

9 allocation under subparagraph (B); 

10 ‘‘(ii) 40 percent shall be available for 

11 allocation under subparagraph (C); and 

12 ‘‘(iii) 20 percent shall be available for 

13 allocation under subparagraph (D). 

14 ‘‘(B) HSI STEM AND ARTICULATION PRO15 GRAMS.—The amount made available for alloca16 tion under this subparagraph by subparagraph 

17 (A)(i) for any fiscal year shall be available for 

18 Hispanic-serving Institutions for activities de19 scribed in section 503, with a priority given to 

20 applications that propose— 

21 ‘‘(i) to increase the number of His22 panic and other low income students attain23 ing degrees in the fields of science, tech24 nology, engineering and mathematics; and 


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1 ‘‘(ii) to develop model transfer and ar2 ticulation agreements between 2-year His3 panic-serving institutions and 4-year insti4 tutions in such fields. 

5 ‘‘(C) ALLOCATION AND ALLOTMENT HBCUS

6 AND PBIS.—From the amount made available for 

7 allocation under this subparagraph by subpara8 graph (A)(ii) for any fiscal year— 

9 ‘‘(i) $34,000,000 shall be available to 

10 eligible institutions described in subsection 

11 (a)(1) and shall be made available as grants 

12 under section 323 and allotted among such 

13 institutions under section 324, treating such 

14 amount, plus the amount appropriated for 

15 such fiscal year in a regular or supple16 mental appropriation Act to carry out part 

17 B of title III, as the amount appropriated 

18 to carry out part B of title III for purposes 

19 of allotments under section 324, for use by 

20 such institutions with a priority for— 

21 ‘‘(I) activities described in para22 graphs (1), (2), (4), (5), and (10) of 

23 section 323(a); and 

24 ‘‘(II) other activities, consistent 

25 with the institution’s comprehensive 


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1 plan and designed to increase the in2 stitution’s capacity to prepare students 

3 for careers in the physical and natural 

4 sciences, mathematics, computer 

5 science and information technology 

6 and sciences, engineering, language in7 struction in the less-commonly taught 

8 languages and international affairs, 

9 and nursing and allied health profes10 sions; and 

11 ‘‘(ii) $6,000,000 shall be available to 

12 eligible institutions described in subsection 

13 (a)(5) and shall be available for a competi14 tive grant program to award 10 grants of 

15 $600,000 annually for programs in the fol16 lowing areas: science, technology, engineer17 ing, or mathematics (STEM); health edu18 cation; internationalization or 

19 globalization; teacher preparation; or im20 proving educational outcomes of African 

21 American males. 

22 ‘‘(D) ALLOCATION AND ALLOTMENT TO

23 OTHER MINORITY-SERVING INSTITUTIONS.—From 

24 the amount made available for allocation under 

25 this subparagraph by subparagraph (A)(iii) for 


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1 any fiscal year (in this subparagraph referred to 

2 as the ‘allocable amount’)— 

3 ‘‘(i) 60 percent of the allocable amount 

4 for such fiscal year shall be available to eli5 gible institutions described in subsection 

6 (a)(3) and shall be made available as grants 

7 under section 316, treating such 60 percent 

8 of the allocable amount as part of the 

9 amount appropriated for such fiscal year in 

10 a regular or supplemental appropriation 

11 Act to carry out such section, and using 

12 such 60 percent for purposes described in 

13 subsection (c) of such section; 

14 ‘‘(ii) 30 percent of the allocable 

15 amount for such fiscal year shall be avail16 able to eligible institutions described in sub17 section (a)(4) and shall be made available 

18 as grants under section 317, treating such 

19 30 percent of the allocable amount as part 

20 of the amount appropriated for such fiscal 

21 year in a regular or supplemental appro22 priation Act to carry out such section and 

23 using such 60 percent for purposes described 

24 in subsection (a) of such section; and 


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1 ‘‘(iii) 10 percent of the allocable 

2 amount for such fiscal year shall be avail3 able to eligible institutions described in sub4 section (a)(6) for activities described in sec5 tion 311(c). 

6 ‘‘(c) DEFINITIONS.— 

7 ‘‘(1) PREDOMINANTLY BLACK INSTITUTION.—The 

8 term ‘Predominantly Black institution’ means an in9 stitution of higher education that— 

10 ‘‘(A) has an enrollment of needy under11 graduate students as required and defined by 

12 paragraph (2); 

13 ‘‘(B) has an average educational and gen14 eral expenditure which is low, per full-time 

15 equivalent undergraduate student in comparison 

16 with the average educational and general ex17 penditure per full-time equivalent undergraduate 

18 student of institutions that offer similar instruc19 tion, except that the Secretary may apply the 

20 waiver requirements described in section 392(b) 

21 to this subparagraph in the same manner as the 

22 Secretary applies the waiver requirements to sec23 tion 312(b)(1)(B); 

24 ‘‘(C) has an enrollment of undergraduate 

25 students— 


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1 ‘‘(i) that is at least 40 percent Black 

2 American students; 

3 ‘‘(ii) that is at least 1,000 under4 graduate students; 

5 ‘‘(iii) of which not less than 50 percent 

6 of the undergraduate students enrolled at 

7 the institution are low-income individuals 

8 or first-generation college students (as that 

9 term is defined in section 402A(g)); and 

10 ‘‘(iv) of which not less than 50 percent 

11 of the undergraduate students are enrolled 

12 in an educational program leading to a 

13 bachelor’s or associate’s degree that the in14 stitution is licensed to award by the State 

15 in which it is located; 

16 ‘‘(D) is legally authorized to provide, and 

17 provides within the State, an educational pro18 gram for which the institution of higher edu19 cation awards a bachelors degree, or in the case 

20 of a junior or community college, an associate’s 

21 degree; 

22 ‘‘(E) is accredited by a nationally recog23 nized accrediting agency or association deter24 mined by the Secretary to be a reliable authority 

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1 cording to such an agency or association, mak2 ing reasonable progress toward accreditation; 

3 and 

4 ‘‘(F) is not receiving assistance under part 

5 B of title III. 

6 ‘‘(2) ENROLLMENT OF NEEDY STUDENTS.—The 

7 term ‘enrollment of needy students’ means the enroll8 ment at an eligible institution with respect to which 

9 not less than 50 percent of the undergraduate students 

10 enrolled in an academic program leading to a de11 gree— 

12 ‘‘(A) in the second fiscal year preceding the 

13 fiscal year for which the determination is made, 

14 were Federal Pell Grant recipients for such year; 

15 ‘‘(B) come from families that receive bene16 fits under a means-tested Federal benefits pro17 gram (as defined in paragraph (4)); 

18 ‘‘(C) attended a public or nonprofit private 

19 secondary school— 

20 ‘‘(i) that is in the school district of a 

21 local educational agency that was eligible 

22 for assistance under part A of title I of the 

23 Elementary and Secondary Education Act 

24 of 1965 for any year during which the stu25 dent attended such secondary school; and 


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1 ‘‘(ii) which for the purpose of this 

2 paragraph and for that year was deter3 mined by the Secretary (pursuant to regula4 tions and after consultation with the State 

5 educational agency of the State in which the 

6 school is located) to be a school in which the 

7 enrollment of children counted under section 

8 1113(a)(5) of such Act exceeds 30 percent of 

9 the total enrollment of such school; or 

10 ‘‘(D) are first-generation college students (as 

11 that term is defined in section 402A(g)), and a 

12 majority of such first-generation college students 

13 are low-income individuals. 

14 ‘‘(3) LOW-INCOME INDIVIDUAL.—The term ‘low15 income individual’ has the meaning given such term 

16 in section 402A(g). 

17 ‘‘(4) MEANS-TESTED FEDERAL BENEFIT PRO18 GRAM.—The term ‘means-tested Federal benefit pro19 gram’ means a program of the Federal Government, 

20 other than a program under title IV, in which eligi21 bility for the programs’ benefits, or the amount of 

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

23 income or resources of the individual or family seek24 ing the benefit. 


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1 ‘‘(5) ASIAN AMERICAN AND PACIFIC ISLANDER2 SERVING INSTITUTION.—The term ‘Asian American 

3 and Pacific Islander-serving institution’ means an 

4 institution of higher education that— 

5 ‘‘(A) is an eligible institution under section 

6 312(b); and 

7 ‘‘(B) at the time of application, has an en8 rollment of undergraduate students that is at 

9 least 10 percent Asian American and Pacific Is10 lander students from subgroups with low levels of 

11 college degree attainment. 

12 ‘‘(6) ASIAN AMERICAN.—The term ‘Asian Amer13 ican’ has the meaning given the term ‘Asian’ in the 

14 Office of Management and Budget’s Standards for 

15 Maintaining, Collecting, and Presenting Federal 

16 Data on Race and Ethnicity as published on October 

17 30, 1997 (62 Fed. Reg. 58789). 

18 ‘‘(7) PACIFIC ISLANDER.—The term ‘Pacific Is19 lander’ has the meaning given the term ‘Native Ha20 waiian’ or ‘Other Pacific Islander’ in such Standards 

21 for Maintaining, Collecting, and Presenting Federal 

22 Data on Race and Ethnicity. 

23 ‘‘(8) LOW LEVELS OF COLLEGE DEGREE ATTAIN24 MENT.—The term ‘low levels of college degree attain25 ment’ mean college degree attainment that is less than 


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1 20 percent for adults ages 25 through 29 as reported 

2 by the National Center for Educational Statistics. 

3 ‘‘(d) TERMINATION OF AUTHORITY.—The authority to 

4 carry out this section expires at the end of fiscal year 

5 2012.’’. 

6 PART B—COLLEGE ACCESS CHALLENGE GRANTS 

7 SEC. 411. COLLEGE ACCESS CHALLENGE GRANTS. 

8 (a) CHALLENGE GRANT PROGRAM ESTABLISHED.— 

9 (1) PROGRAM ESTABLISHED.—The Secretary 

10 shall establish a program to award matching grants 

11 to increase the number of eligible students from un12 derserved populations who enter and complete college 

13 by providing grants to philanthropic organizations 

14 who are members of eligible consortia to carry out the 

15 activities of the consortia to achieve this purpose, in16 cluding— 

17 (A) providing need-based grants to eligible 

18 students; 

19 (B) providing support to eligible students 

20 through school- or institution-based mentoring 

21 programs; and 

22 (C) conducting outreach programs to en23 courage eligible students to pursue higher edu24 cation. 


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1 (2) GRANT PERIOD; RENEWABILITY.—Grants 

2 under this section shall be awarded for one 5-year pe3 riod, and may not be renewed. 

4 (3) GRANT AMOUNTS.— 

5 (A) IN GENERAL.—A grant awarded under 

6 this part for a given fiscal year to a philan7 thropic organization shall be in an amount equal 

8 to the lesser of— 

9 (i) 200 percent of the amount of chari10 table gifts received in the preceding fiscal 

11 year by the eligible consortia, including 

12 charitable gifts received by the individual 

13 members of the consortia with which the 

14 philanthropic organization is associated; or 

15 (ii) the maximum grant amount estab16 lished by the Secretary by regulation, pur17 suant to subsection (f). 

18 (B) GIFTS PROVIDED IN CASH OR IN19 KIND.—For the purposes of subparagraph (A), 

20 the charitable gifts received by an eligible con21 sortia and its members may be provided in cash 

22 or in-kind, including physical non-cash con23 tributions of monetary value such as property, 

24 facilities, and equipment, but excluding services. 

25 (b) USES OF GRANT.— 


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1 (1) IN GENERAL.—A philanthropic organization 

2 receiving a grant under this section shall— 

3 (A) provide grants to eligible students; and 

4 (B) distribute grants to members of the con5 sortia with which the philanthropic organization 

6 is affiliated, in accordance with the plan de7 scribed in subsection (c)(2)(A), to fund the ac8 tivities of such consortia in accordance with the 

9 application under subsection (c). 

10 (2) LIMITATION.—Not more than 15 percent of 

11 the funds made available annually through a grant 

12 under this section may be used for administrative 

13 purposes. 

14 (c) APPLICATIONS.—A philanthropic organization de15 siring a grant under this section shall submit an applica16 tion to the Secretary at such time, in such manner, and 

17 containing such information as the Secretary may require. 

18 Such application shall include the following: 

19 (1) A description of an eligible consortia that 

20 meets the requirements of subsection (d), with which 

21 the philanthropic organization is affiliated, in ac22 cordance with subsection (g). 

23 (2) A detailed description of— 


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1 (A) the philanthropic organization’s plans 

2 for distributing the matching grant funds among 

3 the members of the eligible consortia; and 

4 (B) the eligible consortia’s plans for using 

5 the matching grant funds, including how the 

6 funds will be used to provide financial aid, men7 toring, and outreach programs to eligible stu8 dents. 

9 (3) A plan to ensure the viability of the eligible 

10 consortia and the work of the consortia beyond the 

11 grant period. 

12 (4) A detailed description of the activities that 

13 carry out this section that are conducted by the eligi14 ble consortia at the time of the application, and how 

15 the matching grant funds will assist the eligible con16 sortia with expanding and enhancing such activities. 

17 (5) A description of the organizational structure 

18 that will be used to administer the activities carried 

19 out under the plan, including a description of the sys20 tem used to track the participation of students who 

21 receive grants to degree completion. 

22 (6) A description of the strategies that will be 

23 used to identify eligible students who are enrolled in 

24 secondary school and who may benefit from the ac25 tivities of the eligible consortia. 


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1 (d) ELIGIBLE CONSORTIA.—An eligible consortia with 

2 which a philanthropic organization is affiliated for the pro3 gram under this section shall— 

4 (1) be a partnership of mulitple entities that 

5 have agreed to work together to carry out this section, 

6 including— 

7 (A) such philanthropic organization, which 

8 shall serve as the manager of the consortia; 

9 (B) a State that demonstrates a commit10 ment to ensuring the creation of a Statewide sys11 tem to address the issues of early intervention 

12 and financial support for eligible students to 

13 enter and remain in college; and 

14 (C) at the discretion of the philanthropic or15 ganization described in subparagraph (A), addi16 tional partners, including other non-profit orga17 nizations, government entities (including local 

18 municipalities, school districts, cities, and coun19 ties), institutions of higher education, and other 

20 public or private programs that provide men21 toring or outreach programs; and 

22 (2) conduct activites to assist eligible students 

23 with entering and remaining in college, which in24 clude— 


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1 (A) providing need-based grants to eligible 

2 students; 

3 (B) providing early notification to low-in4 come students of their potential eligibility for 

5 Federal financial aid (which may include assist6 ing students and families with filling out 

7 FAFSA forms), as well as financial aid and 

8 other support available from the eligible con9 sortia; 

10 (C) encouraging increased eligible student 

11 participation in higher education through men12 toring or outreach programs; and 

13 (D) conducting marketing and outreach ef14 forts that are designed to— 

15 (i) encourage full participation of eli16 gible students in the activities of the con17 sortia that carry out this section; and 

18 (ii) provide the communities impacted 

19 by the activities of the consortia with a gen20 eral knowledge about the efforts of the con21 sortia. 

22 (e) ANNUAL REPORT.—A philanthropic organization 

23 receiving a grant under this section shall prepare and sub24 mit an annual report to the Secretary on the activities car25 ried out with such grant. The report shall include— 


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1 (1) each activity or service that was provided to 

2 eligible students over the course of the year; 

3 (2) the cost of providing each such activity or 

4 service; 

5 (3) the number and percentage of eligible stu6 dents who received grants, mentoring, and outreach 

7 services; and 

8 (4) the total amount of charitable gifts received 

9 by the eligible consortia (including its members) with 

10 which the philanthropic organization is affiliated for 

11 the fiscal year. 

12 (f) REGULATIONS.—The Secretary shall promulgate 

13 regulations to carry out this section. Such regulations shall 

14 include— 

15 (1) the maximum grant amount that may be 

16 awarded to a philanthropic organization under this 

17 section; 

18 (2) the minimum amount of chartable gifts an 

19 eligible consortia (including its members) shall receive 

20 in a fiscal year for the philanthropic organization af21 filiated with such consortia to be eligible for a grant 

22 under this section. 

23 (g) DEFINITIONS.—For the purposes of this section: 

24 (1) ELIGIBLE STUDENT.—The term ‘‘eligible stu25 dent’’ means an individual who— 


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1 (A) is a member of an underserved popu2 lation; 

3 (B) is enrolled— 

4 (i) in a secondary school pursuing a 

5 high school diploma; or 

6 (ii) in an institution of higher edu7 cation or is planning to attend an institu8 tion of higher education; and 

9 (C) either— 

10 (i) is receiving, or has received, finan11 cial assistance or support services from the 

12 consortium; or 

13 (ii) meets 2 or more of the following 

14 criteria: 

15 (I) Has an expected family con16 tribution equal to zero (as described in 

17 section 479 of the Higher Education 

18 Act of 1965) or a comparable alter19 native based upon the State’s approved 

20 criteria in section 415C(b)(4) of such 

21 Act. 

22 (II) Has qualified for a free 

23 lunch, or at the State’s discretion a re24 duced price lunch, under the school 

25 lunch program established under the 


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1 Richard B. Russell National School 

2 Lunch Act. 

3 (III) Qualifies for the State’s 

4 maximum need-based undergraduate 

5 award. 

6 (IV) Is participating in, or has 

7 participated in, a Federal, State, insti8 tutional, or community mentoring or 

9 outreach program, as recognized by the 

10 eligible consortia carrying out activi11 ties under this section. 

12 (2) PHILANTHROPIC ORGANIZATION.—The term 

13 ‘‘philanthropic organization’’ means a non-profit or14 ganization— 

15 (A) that does not receive funds under title 

16 IV of the Higher Education Act of 1965 or under 

17 the Elementary and Secondary Education Act of 

18 1965; 

19 (B) that is not a local educational agency 

20 or an insitution of higher education; 

21 (C) that has a demonstrated record of dis22 persing grant aid to underserved populations to 

23 ensure access to, and participation in, higher 

24 education; 


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1 (D) that is affiliated with an eligible con2 sortia (as defined in subsection (d)) to carry out 

3 this section; and 

4 (E) the primary purpose of which is to pro5 vide financial aid and support services to stu6 dents from underrepresented populations to in7 crease the number of such students who enter and 

8 remain in college. 

9 (3) STATE.—The term ‘‘State’’ means each of the 

10 several States of the United States, the District of Co11 lumbia, and Puerto Rico. 

12 (4) UNDERSERVED POPULATION.—The term ‘‘un13 derserved population’’ means a group of individuals 

14 who traditionally have not been well represented in 

15 the general population of students who pursue and 

16 successfully complete a higher education degree. 

17 (h) PROGRAM FUNDING.— 

18 (1) IN GENERAL.—There shall be available to the 

19 Secretary to carry out this section, from funds not 

20 otherwise appropriated, $300,000,000 for the period 

21 beginning with fiscal year 2008 and ending with fis22 cal year 2012. 

23 (2) USE OF EXCESS FUNDS.—If, at the end of a 

24 fiscal year, the funds available for awarding grants 

25 under this section exceed the amount necessary to 


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1 make such grants, then all of the excess funds shall re2 main available for the subsequent fiscal year, and 

3 shall be used to award grants under section 401 of the 

4 Higher Education Act of 1965 (20 U.S.C. 1070a) for 

5 such subsequent fiscal year. 

6 (i) SUNSET.—The authority to carry out this section 

7 shall expire at the end of fiscal year 2012. 

8 PART C—UPWARD BOUND 

9 SEC. 412. UPWARD BOUND. 

10 (a) ABSOLUTE PRIORITY PROHIBITED IN UPWARD

11 BOUND PROGRAM.—Section 402C (20 U.S.C. 1070a–13) is 

12 amended by adding at the end the following new subsection: 

13 ‘‘(f) ABSOLUTE PRIORITY PROHIBITED IN UPWARD

14 BOUND PROGRAM.—Except as otherwise expressly provided 

15 by amendment to this section, the Secretary shall not imple16 ment or enforce, and shall rescind, the absolute priority for 

17 Upward Bound Program participant selection and evalua18 tion published by the Department of Education in the Fed19 eral Register on September 22, 2006 (71 Fed. Reg. 55447 

20 et seq.).’’. 

21 (b) ADDITIONAL FUNDS.—Section 402C is further 

22 amended by adding after subsection (f) (as added by sub23 section (a)) the following new subsection: 

24 ‘‘(g) ADDITIONAL FUNDS.— 


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1 ‘‘(1) AUTHORIZATION AND APPROPRIATION.— 

2 There are authorized to be appropriated, and there 

3 are appropriated to the Secretary, from funds not 

4 otherwise appropriated, $30,000,000 for each of the 

5 fiscal years 2008 through 2011 to carry out para6 graph (2), except that any amounts that remain un7 expended for such purpose for each of such fiscal years 

8 may be available for technical assistance and admin9 istration costs for the Upward Bound program. 

10 ‘‘(2) USE OF FUNDS.—The amounts made avail11 able by paragraph (1) shall be available to provide 

12 assistance to all Upward Bound projects that received 

13 assistance in fiscal year 2006 but that did not receive 

14 assistance in fiscal year 2007 (other than new appli15 cants) with a grant score above 70. Such assistance 

16 shall be made available in the form of 4-year 

17 grants.’’. 

18 TITLE V—ADDITIONAL 

19 PROVISIONS 

20 SEC. 501. INDEPENDENT EVALUATION OF DISTANCE EDU21 CATION PROGRAMS. 

22 (a) INDEPENDENT EVALUATION.—The Secretary of 

23 Education shall enter into an agreement with the National 

24 Academy of Sciences to conduct a scientifically correct and 

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1 cation programs, as compared to campus-based education 

2 programs, at institutions of higher education. Such evalua3 tion shall include— 

4 (1) identification of the elements by which the 

5 quality of distance education, as compared to cam6 pus-based education, can be assessed, including ele7 ments such as subject matter, interactivity, and stu8 dent outcomes; 

9 (2) identification of distance and campus-based 

10 education program success, with respect to student 

11 achievement, in relation to the mission of the institu12 tion of higher education; and 

13 (3) identification of the types of students (in14 cluding classification of types of students based on 

15 student age) who most benefit from distance education 

16 programs, the types of students who most benefit from 

17 campus-based education programs, and the types of 

18 students who do not benefit from distance education 

19 programs, by assessing elements including access to 

20 higher education, job placement rates, undergraduate 

21 graduation rates, and graduate and professional de22 gree attainment rates. 

23 (b) SCOPE.—The National Academy of Sciences shall 

24 select for participation in the evaluation under subsection 


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1 (a) a diverse group of institutions of higher education with 

2 respect to size, mission, and geographic distribution. 

3 (c) INTERIM AND FINAL REPORTS.—The agreement 

4 under subsection (a) shall require that the National Acad5 emy of Sciences submit to the Secretary of Education, the 

6 Committee on Health, Education, Labor and Pensions of 

7 the Senate, and the Committee on Education and Labor 

8 of the House of Representatives— 

9 (1) an interim report regarding the evaluation 

10 under subsection (a) not later than December 31, 

11 2007; and 

12 (2) a final report regarding such evaluation not 

13 later than December 31, 2009. 

14 (d) APPROPRIATIONS.—There shall be available to the 

15 Secretary, from funds not otherwise appropriated, $100,000 

16 to carry out this section. 

17 SEC. 502. ENCOURAGING COLLEGES AND UNIVERSITIES TO 

18 ‘‘GO GREEN’’. 

19 (a) FINDINGS.—The Committee on Education and 

20 Labor of the House of Representatives makes the following 

21 findings: 

22 (1) A commitment to and academic programs for 

23 environmental and economic sustainability are essen24 tial for our Nation’s future prosperity. 


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1 (2) The more than 4,200 higher education insti2 tutions in the United States have the capacity to in3 novatively leverage spending and change consumption 

4 patterns by incorporating concepts of sustainability 

5 into their academic programs and by modeling sus6 tainable economic and environmental practices for 

7 their communities. 

8 (3) Many colleges and universities have inter9 disciplinary programs or centers focusing on equip10 ping students with the academic content knowledge 

11 needed to understand concepts of sustainability and 

12 ‘‘going green’’. 

13 (4) Many colleges and universities have pro14 grams related to the research of sustainability and 

15 sustainable systems. 

16 (5) Academic programs related to sustainability 

17 vary in rigor because no national education content 

18 standards for academic sustainability programs cur19 rently exist. 

20 (6) Colleges and universities may partner with 

21 businesses to encourage students and faculty to trans22 late academic learning and research into practical so23 lutions that promote sustainability. 

24 (7) Colleges and universities that make an effort 

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1 mental sustainability not only reduce their own emis2 sions, but also motivate the leaders of the next genera3 tion to action and create technical skills and resources 

4 to develop innovative solutions. 

5 (8) Many colleges and universities have under6 taken detailed, campus-wide assessments of their 

7 progress toward ‘‘going green’’ and sustainability or 

8 have measured their progress in specific sectors, such 

9 as operations, or specific parameters, such as recy10 cling, energy, and water consumption. 

11 (9) No system that evaluates and compares col12 lege and university campuses in terms of overall sus13 tainability-related academic programs and practices 

14 currently exists. 

15 (b) SENSE OF THE COMMITTEE ON EDUCATION AND

16 LABOR.—It is the sense of the Committee on Education and 

17 Labor that in order to encourage increased public aware18 ness of the need to ‘‘go green’’ by using sustainable economic 

19 and environmental practices and rigorous sustainability 

20 academic programs on college and university campuses, the 

21 following should be encouraged: 

22 (1) The development of educational standards by 

23 institutions of higher education to determine the nec24 essary rigor and effectiveness of academic sustain25 ability programs. 


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1 (2) Public awareness of the need for ‘‘going 

2 green’’ by using sustainable economic and environ3 mental practices. 

4 (3) Non-governmental efforts to improve eco5 nomic and environmental sustainability efforts on 

6 college and university campuses, including holding 

7 national summits to share best practices. 

8 (4) Collaborative partnerships between Federal 

9 agencies, businesses, universities and communities to 

10 broaden sustainability practices. 


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Union Calendar No. 128 

110TH CONGRESS 

1ST SESSION H. R. 2669 

[Report No. 110

–210] 

A BILL 

To provide for reconciliation pursuant to section 

for fiscal year 2008. 601 of the concurrent resolution on the budget 

JUNE 25, 2007 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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