I 

108TH CONGRESS 

1ST SESSION H. R. 3180

To amend the Higher Education Act of 1965. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 25, 2003

Mr. GEORGE MILLER of California (for himself, Ms. PELOSI, Mr. KILDEE, 

Mr. OWENS, Mr. PAYNE, Mr. ANDREWS, Ms. WOOLSEY, Mr. HINOJOSA, 

Mrs. MCCARTHY of New York, Mr. TIERNEY, Mr. KUCINICH, Mr. HOLT, 

Ms. MCCOLLUM, Mr. DAVIS of Illinois, Mr. CASE, Mr. GRIJALVA, Mr. 

VAN HOLLEN, Mr. RYAN of Ohio, Mr. BISHOP of New York, Ms. 

MAJETTE, Mr. ABERCROMBIE, Mr. SCOTT of Virginia, Mrs. JONES of 

Ohio, Mr. SERRANO, Mr. FRANK of Massachusetts, Mr. NADLER, Mr. 

CROWLEY, Ms. MILLENDER-MCDONALD, Mr. BROWN of Ohio, Ms. BALDWIN, Ms. DELAURO, Ms. WATSON, Mr. WEXLER, Mr. ORTIZ, Mr. 

HOEFFEL, Mr. ALEXANDER, Mr. ISRAEL, Mr. FILNER, Ms. SOLIS, Mr. 

MARKEY, Ms. NORTON, Mr. FALEOMAVAEGA, Mr. CUMMINGS, Ms. LORETTA SANCHEZ of California, Mr. HONDA, Ms. CARSON of Indiana, Ms. 

JACKSON-LEE of Texas, Mr. RUPPERSBERGER, Mr. GUTIERREZ, Ms. 

LINDA T. SA ́NCHEZ of California, and Mr. EMANUEL) introduced the following bill; which was referred to the Committee on Education and the 

Workforce 

A BILL

To amend the Higher Education Act of 1965.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CON2 TENTS. 

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

4 ‘‘College Opportunity for All Act’’

5 (b) REFERENCES.—Except as otherwise expressly 

6 provided, whenever in this Act an amendment or repeal 

7 is expressed in terms of an amendment to, or repeal of, 

8 a section or other provision, the reference shall be consid9 ered to be made to a section or other provision of the 

10 Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 

11 (c) TABLE OF CONTENTS.—

Sec. 1. Short title; reference; table of contents. 

Sec. 2. Student access through increased student aid. 

Sec. 3. Enhancing support and educational opportunities for students at minority serving institutions. 

Sec. 4. Expanding graduate opportunities at Hispanic-serving institutions. 

Sec. 5. Strengthening outreach programs to disadvantaged students. 

Sec. 6. Support for working students. 

Sec. 7. Public service scholarships. 

Sec. 8. Providing relief to borrowers. 

Sec. 9. Simplifying the student aid process. 

Sec. 10. Expansion of voluntary flexible agreements with guaranty agencies. 

Sec. 11. Allowance for State and other taxes.

12 SEC. 2. STUDENT ACCESS THROUGH INCREASED STUDENT 

13 AID. 

14 (a) PELL GRANTS.—

15 (1) MAXIMUM GRANTS.—Section 401(b)(2)(A) 

16 (20 U.S.C. 1070a(b)(2)(A)) is amended by striking 

17 clauses (i) through (v) and inserting the following: 

18 ‘‘(i) $5,800 for academic year 2004–2005; 

19 ‘‘(ii) $6,900 for academic year 2005–2006; 

20 ‘‘(iii) $8,000 for academic year 2006–2007; 
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1 ‘‘(iv) $9,100 for academic year 2007–2008; 

2 ‘‘(v) $10,200 for academic year 2008–2009; 

3 and 

4 ‘‘(vi) $11,600 for academic year 2009–2010,’’. 

5 (2) YEAR-ROUND PELL GRANTS.—Section 401 

6 is further amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(k) YEAR-ROUND PELL GRANTS.—

9 ‘‘(1) PILOT PROGRAM ESTABLISHED.—The Sec10 retary shall establish in accordance with this sub11 section a year-round Pell grant pilot program. Any 

12 institution of higher education that desires to par13 ticipate in the program under this subsection shall 

14 submit an application the Secretary at such time 

15 and containing or accompanied by such information 

16 and assurances as the Secretary may require. The 

17 Secretary may select not more than 200 institutions 

18 of higher education for participation in the program. 

19 ‘‘(2) PROGRAM ELEMENTS.—With respect to 

20 students enrolled in institutions participating in the 

21 program under this subsection, the Secretary is au22 thorized—

23 ‘‘(A) to award such students two Pell 

24 grants in one calendar year to permit such stu25 dents to accelerating progress towards their de-
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1 gree or certificate objectives by enrolling in aca2 demic programs for 12 rather than 9 months of 

3 the year at participating institutions; and 

4 ‘‘(B) to award such two Pell grants to 

5 such students in a total amount up to 133 per6 cent of the maximum Pell under subsection 

7 (b)(2)(A) that is applicable for the academic 

8 year. 

9 ‘‘(3) LIMITATION.—The Secretary shall limit 

10 the awarding of additional Pell grants under this 

11 subsection in a single calendar year to students who 

12 attend bachelor’s degree granting institutions with 

13 the following characteristics: 

14 ‘‘(A) the graduation rate for the institution 

15 of higher education reported by the Integrated 

16 Postsecondary Education Data System for the 

17 preceding five academic years is at least 50 per18 cent; and 

19 ‘‘(B) the average time of enrollment re20 quired to complete a degree at the institution 

21 among students who enter as freshman and 

22 earn bachelor’s degrees is 14 or fewer quarters, 

23 or 9 or fewer semesters or the equivalent. 

24 ‘‘(4) TERMINATION; EVALUATION.—The author25 ity of the Secretary under this subsection shall cease 
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1 to be effective on October 1, 2009. Not later than 

2 October 1, 2008, the Secretary shall conduct an 

3 evaluation of the program under this subsection and 

4 submit to the Congress a report on the results of 

5 such evaluation.’’. 

6 (3) ELIMINATION OF TUITION SENSITIVITY

7 PROVISION.—Section 401(b) is further amended—

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

9 (B) by redesignating paragraphs (4) 

10 though (8) as paragraphs (3) through (7), re11 spectively. 

12 (b) FEDERAL TRIO PROGRAM AUTHORIZATIONS.—

13 Section 402A(f) (20 U.S.C. 1070a–11(f)) is amended by 

14 striking ‘‘$700,000,000 for fiscal year 1999’’ and insert15 ing ‘‘$1,250,000,000 for fiscal year 2004’’. 

16 (c) GEARUP.—Section 404H (20 U.S.C. 1070a–28) 

17 is amended to read as follows: 

18 ‘‘SEC. 404H. AUTHORIZATION OF APPROPRIATIONS. 

19 ‘‘There are authorized to be appropriated to carry out 

20 this chapter—

21 ‘‘(1) $500,000,000 for fiscal year 2004; and 

22 ‘‘(2) such sums as may be necessary for each 

23 of the 4 succeeding fiscal years.’’. 

24 (d) FEDERAL SUPPLEMENTAL EDUCATIONAL OP25 PORTUNITY GRANTS.—
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1 (1) AUTHORIZATION.—Section 413A(b)(1) (20 

2 U.S.C. 1070b(b)(1)) is amended by striking 

3 ‘‘$675,000,000 for fiscal year 1999’’ and inserting 

4 ‘‘$1,000,000,000 for fiscal year 2004’’. 

5 (2) MAXIMUM GRANT.—Section 413B(a)(2) (20 

6 U.S.C. 1070b–1(a)(2)) is amended by striking 

7 ‘‘$4,000’’ and inserting ‘‘$8,000’’. 

8 (e) COLLEGE WORK-STUDY.—Section 441(b) (20 

9 U.S.C. 2751(b)) is amended to read as follows: 

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

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

12 ‘‘(1) $1,500,000,000 for fiscal year 2004; and 

13 ‘‘(2) such sums as may be necessary for each 

14 of the 4 succeeding fiscal years.’’. 

15 (f) LEAP.—

16 (1) AUTHORIZATION OF APPROPRIATIONS.—

17 Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is 

18 amended by striking ‘‘$105,000,000 for fiscal year 

19 1999’’ and inserting ‘‘$200,000,000 for fiscal year 

20 2004’’. 

21 (2) MAXIMUM GRANT.—Section 415C(b)(2) (20 

22 U.S.C. 1070c–2(b)(2)) is amended by striking 

23 ‘‘$5,000’’ and inserting ‘‘$12,500’’. 
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1 SEC. 3. ENHANCING SUPPORT AND EDUCATIONAL OPPOR2 TUNITIES FOR STUDENTS AT MINORITY 

3 SERVING INSTITUTIONS. 

4 (a) TITLE II AMENDMENTS: CENTERS OF EXCEL5 LENCE.—Title II is amended by inserting after section 

6 224 (20 U.S.C. 1044) the following new part: 

7 ‘‘PART C—CENTERS OF EXCELLENCE 

8 ‘‘SEC. 231. PURPOSES; DEFINITIONS. 

9 ‘‘(a) PURPOSES.—The purposes of this part are—

10 ‘‘(1) to help recruit and prepare teachers, in11 cluding minority teachers, to meet the national de12 mand for a highly qualified teacher in every class13 room; and 

14 ‘‘(2) to increase opportunities for Americans of 

15 all educational, ethnic, class, and geographic back16 grounds to become highly qualified teachers. 

17 ‘‘(b) DEFINITIONS.—As used in this part: 

18 ‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligi19 ble institution’ means—

20 ‘‘(A) an institution of higher education 

21 that has a teacher preparation program that 

22 meets the requirements of section 203(b)(2) 

23 and that is—

24 ‘‘(i) a part B institution (as defined in 

25 section 322); 
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1 ‘‘(ii) a Hispanic-serving institution (as 

2 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 sub13 paragraph (B), in partnership with any other 

14 institution of higher education, but only if the 

15 center of excellence established under section 

16 232 is located at an institution described in 

17 subparagraph (A). 

18 ‘‘(2) HIGHLY QUALIFIED.—The term ‘highly 

19 qualified’ has the meaning given such term in sec20 tion 9101 of the Elementary and Secondary Edu21 cation Act of 1965 (20 U.S.C. 7801). 

22 ‘‘(3) SCIENTIFICALLY BASED READING RE23 SEARCH.—The term ‘scientifically based reading re24 search’ has the meaning given such term in section 
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1 1208 of the Elementary and Secondary Education 

2 Act of 1965 (20 U.S.C. 6368). 

3 ‘‘(4) SCIENTIFICALLY BASED RESEARCH.—The 

4 term ‘scientifically based research’ has the meaning 

5 given such term in section 9101 of the Elementary 

6 and Secondary Education Act of 1965 (20 U.S.C. 

7 7801). 

8 ‘‘SEC. 232. CENTERS OF EXCELLENCE. 

9 ‘‘(a) PROGRAM AUTHORIZED.—From the amounts 

10 appropriated to carry out this part, the Secretary is au11 thorized to award competitive grants to eligible institu12 tions to establish centers of excellence. 

13 ‘‘(b) USE OF FUNDS.—Grants provided by the Sec14 retary under this part shall be used to ensure that current 

15 and future teachers are highly qualified, by carrying out 

16 one or more of the following activities: 

17 ‘‘(1) Implementing reforms within teacher prep18 aration programs to ensure that such programs are 

19 preparing teachers who are highly qualified, are able 

20 to understand scientifically based research, and are 

21 able to use advanced technology effectively in the 

22 classroom, including use for instructional techniques 

23 to improve student academic achievement, by—

24 ‘‘(A) retraining faculty; and 
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1 ‘‘(B) designing (or redesigning) teacher 

2 preparation programs that—

3 ‘‘(i) prepare teachers to close student 

4 achievement gaps, are based on rigorous 

5 academic content, scientifically based re6 search (including scientifically based read7 ing research), and challenging State stu8 dent academic content standards; and 

9 ‘‘(ii) promote strong teaching skills. 

10 ‘‘(2) Providing sustained and high-quality 

11 preservice clinical experience, including the men12 toring of prospective teachers by exemplary teachers, 

13 substantially increasing interaction between faculty 

14 at institutions of higher education and new and ex15 perienced teachers, principals, and other administra16 tors at elementary schools or secondary schools, and 

17 providing support, including preparation time, for 

18 such interaction. 

19 ‘‘(3) Developing and implementing initiatives to 

20 promote retention of highly qualified teachers and 

21 principals, including minority teachers and prin22 cipals, including programs that provide—

23 ‘‘(A) teacher or principal mentoring from 

24 exemplary teachers or principals; or 
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1 ‘‘(B) induction and support for teachers 

2 and principals during their first 3 years of em3 ployment as teachers or principals, respectively. 

4 ‘‘(4) Awarding scholarships based on financial 

5 need to help students pay the costs of tuition, room, 

6 board, and other expenses of completing a teacher 

7 preparation program. 

8 ‘‘(5) Disseminating information on effective 

9 practices for teacher preparation and successful 

10 teacher certification and licensure assessment prepa11 ration strategies. 

12 ‘‘(6) Activities authorized under sections 202, 

13 203, and 204. 

14 ‘‘(c) APPLICATION.—Any eligible institution desiring 

15 a grant under this section shall submit an application to 

16 the Secretary at such a time, in such a manner, and ac17 companied by such information the Secretary may require. 

18 ‘‘(d) MINIMUM GRANT AMOUNT.—The minimum 

19 amount of each grant under this part shall be $1,500,000. 

20 ‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.—

21 An eligible institution that receives a grant under this part 

22 may not use more than 2 percent of the grant funds for 

23 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 

3 part. 

4 ‘‘SEC. 233. AUTHORIZATION OF APPROPRIATIONS. 

5 ‘‘There are authorized to be appropriated to carry out 

6 this part $20,000,000 for fiscal year 2004 and such sums 

7 as may be necessary for each of the 4 succeeding fiscal 

8 years.’’. 

9 (b) TITLE III AMENDMENTS.—

10 (1) AUTHORIZATIONS OF APPROPRIATIONS.—

11 Section 399(a) (20 U.S.C. 1068h(a)(2)) is amend12 ed—

13 (A) by striking paragraphs (1), (2), and 

14 (3) and inserting the following: 

15 ‘‘(1) PART A.—(A) There are authorized to be 

16 appropriated to carry out part A (other than section 

17 316 and 317)—

18 ‘‘(i) $170,000,000 for fiscal year 2004; 

19 and 

20 ‘‘(ii) such sums as may be necessary for 

21 each of the 4 succeeding fiscal years. 

22 ‘‘(B) There are authorized to be appropriated 

23 to carry out section 316—

24 ‘‘(i) $45,000,000 for fiscal year 2004; and 
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1 ‘‘(ii) such sums as may be necessary for 

2 each of the 4 succeeding fiscal years. 

3 ‘‘(C) There are authorized to be appropriated to 

4 carry out section 317—

5 ‘‘(i) $20,000,000 for fiscal year 2004; and 

6 ‘‘(ii) such sums as may be necessary for 

7 each of the 4 succeeding fiscal years. 

8 ‘‘(2) PART B.—(A) There are authorized to be 

9 appropriated to carry out part B (other than section 

10 326)—

11 ‘‘(i) $270,000,000 for fiscal year 2004; 

12 and 

13 ‘‘(ii) such sums as may be necessary for 

14 each of the 4 succeeding fiscal years. 

15 ‘‘(B) There are authorized to be appropriated 

16 to carry out section 326—

17 ‘‘(i) $90,000,000 for fiscal year 2004; and 

18 ‘‘(ii) such sums as may be necessary for 

19 each of the 4 succeeding fiscal years. 

20 ‘‘(3) PART C.—There are authorized to be ap21 propriated to carry out part C—

22 ‘‘(A) $30,000,000 for fiscal year 2004; and 

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

24 each of the 4 succeeding fiscal years.’’; and 
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1 (B) by striking paragraph (5) and insert2 ing the following: 

3 ‘‘(5) PART E.—There are authorized to be ap4 propriated to carry out part E—

5 ‘‘(A) $40,000,000 for fiscal year 2004; and 

6 ‘‘(B) such sums as may be necessary for 

7 each of the 4 succeeding fiscal years.’’. 

8 (2) AUTHORIZED USES OF FUNDS FOR TITLE

9 III.—Section 323(a) (20 U.S.C. 1062(a)) is amend10 ed—

11 (A) by redesignating paragraph (12) as 

12 paragraph (13); and 

13 (B) by inserting after paragraph (11) the 

14 following new paragraph: 

15 ‘‘(12) Technical assistance services, including 

16 financial management, enrollment management, 

17 strategic planning, replication of best practices, and 

18 other needed services, except that the amount ex19 pended under this paragraph shall not exceed 2 per20 cent of the institution’s annual award under this 

21 part.’’. 

22 (c) TITLE V AUTHORIZATION OF APPROPRIA23 TIONS.—Subsection (a) of section 528 of such Act (as re24 designated by subsection (a)(2)) (20 U.S.C. 1103g) is 

25 amended to read as follows: 
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1 ‘‘(a) AUTHORIZATIONS.——

2 ‘‘(1) PART A.—There are authorized to be ap3 propriated to carry out part A of this title 

4 $175,000,000 for fiscal year 2005 and such sums as 

5 may be necessary for each of the 4 succeeding fiscal 

6 years. 

7 ‘‘(2) PART B.—There are authorized to be ap8 propriated to carry out part B of this title 

9 $125,000,000 for fiscal year 2005 and such sums as 

10 may be necessary for each of the 4 succeeding fiscal 

11 years.’’. 

12 (d) REDUCING REGULATORY BARRIERS FOR HIS13 PANIC-SERVING INSTITUTIONS.—Section 503(b) of the 

14 Higher Education Act of 1965 (20 U.S.C. 1101b(a)) is 

15 amended by striking paragraph (7) and inserting the fol16 lowing: 

17 ‘‘(7) Articulation agreements and student sup18 port programs designed to facilitate the transfer 

19 from two-year to four-year institutions.’’. 

20 SEC. 4. EXPANDING GRADUATE OPPORTUNITIES AT HIS21 PANIC-SERVING INSTITUTIONS. 

22 (a) POSTBACCALAUREATE OPPORTUNITIES FOR HIS23 PANIC AMERICANS.—

24 (1) ESTABLISHMENT OF PROGRAM.—Title V of 

25 the Higher Education Act is amended—
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1 (A) by redesignating part B as part C; 

2 (B) by redesignating section 511 through 

3 518 as sections 521 through 528, respectively; 

4 and 

5 (C) inserting after section 505 (20 U.S.C. 

6 1101d) the following new part: 

7 ‘‘PART B—PROMOTING POSTBACCALAUREATE 

8 OPPORTUNITIES FOR HISPANIC AMERICANS 

9 ‘‘SEC. 511. FINDINGS AND PURPOSES. 

10 ‘‘(a) FINDINGS.—Congress finds the following: 

11 ‘‘(1) According to the United States Census, by 

12 the year 2050 one in four Americans will be of His13 panic origin. 

14 ‘‘(2) Despite the dramatic increase in the His15 panic population in the United States, the National 

16 Center for Education Statistics reported that in 

17 1999, Hispanics accounted for only 4 percent of the 

18 master’s degrees, 3 percent of the doctor’s degrees, 

19 and 5 percent of first-professional degrees awarded 

20 in the United States. 

21 ‘‘(3) Although Hispanics constitute 10 percent 

22 of the college enrollment in the United States, they 

23 comprise 3 only percent of instructional faculty in 

24 college and universities. 
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1 ‘‘(4) The future capacity for research and ad2 vanced study in the United States will require in3 creasing the number of Hispanics pursuing 

4 postbaccalaureate studies. 

5 ‘‘(5) Hispanic-serving institutions are leading 

6 the nation in increasing the number of Hispanics at7 taining graduate and professional degrees. 

8 ‘‘(6) Among Hispanics who received master’s 

9 degrees in 1999–2000, 25 percent earned them at 

10 Hispanic-serving institutions. 

11 ‘‘(7) Between 1991 and 2000, the number of 

12 Hispanic students earning master’s degrees at His13 panic-serving institutions grew 136 percent, the 

14 number receiving doctor’s degrees grew by 85 per15 cent, and the number earning first-professional de16 grees grew by 47 percent. 

17 ‘‘(8) It is in the National interest to expand the 

18 capacity of Hispanic-serving institutions to offer 

19 graduate and professional degree programs. 

20 ‘‘(b) PURPOSES.—The purposes of this part are—

21 ‘‘(1) to expand postbaccalaureate educational 

22 opportunities for, and improve the academic attain23 ment of, Hispanic students; and 

24 ‘‘(2) to expand and enhance the 

25 postbaccalaureate academic offerings, program qual-
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1 ity, that are educating the majority of Hispanic col2 lege students and helping large numbers of Hispanic 

3 students and other low-income individuals complete 

4 postsecondary degrees. 

5 ‘‘SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY. 

6 ‘‘(a) PROGRAM AUTHORIZED.—Subject to the avail7 ability of funds appropriated to carry out this part, the 

8 Secretary shall award competitive grants to Hispanic-serv9 ing institutions that offer postbaccalaureate certifications 

10 or degrees. 

11 ‘‘(b) ELIGIBILITY.—For the purposes of this part, an 

12 ‘eligible institution’ means an institution of higher edu13 cation that—

14 ‘‘(1) is an eligible institution under section 502; 

15 and 

16 ‘‘(2) offers a postbaccalaureate certificate or de17 gree granting program. 

18 ‘‘SEC. 513. AUTHORIZED ACTIVITIES. 

19 ‘‘Grants awarded under this part shall be used for 

20 one or more of the following activities: 

21 ‘‘(1) Purchase, rental, or lease of scientific or 

22 laboratory equipment for educational purposes, in23 cluding instructional and research purposes. 

24 ‘‘(2) Construction, maintenance, renovation, 

25 and improvement in classroom, library, laboratory, 
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1 and other instructional facilities, including purchase 

2 or rental of telecommunications technology equip3 ment or services. 

4 ‘‘(3) Purchase of library books, periodicals, 

5 technical and other scientific journals, microfilm, 

6 microfiche, and other educational materials, includ7 ing telecommunications program materials. 

8 ‘‘(4) Support for needy postbaccalaureate stu9 dents including outreach, academic support services, 

10 mentoring, scholarships, fellowships, and other fi11 nancial assistance to permit the enrollment of such 

12 students in postbaccalaureate certificate and degree 

13 granting programs. 

14 ‘‘(5) Support of faculty exchanges, faculty de15 velopment, faculty research, curriculum development, 

16 and academic instruction. 

17 ‘‘(6) Creating or improving facilities for Inter18 net or other distance learning academic instruction 

19 capabilities, including purchase or rental of tele20 communications technology equipment or services. 

21 ‘‘(7) Collaboration with other institutions of 

22 higher education to expand postbaccalaureate certifi23 cate and degree offerings. 

24 ‘‘(8) Other activities proposed in the application 

25 submitted pursuant to section 514 that—
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1 ‘‘(A) contribute to carrying out the pur2 poses of this part; and 

3 ‘‘(B) are approved by the Secretary as part 

4 of the review and acceptance of such applica5 tion. 

6 ‘‘SEC. 514. APPLICATION AND DURATION. 

7 ‘‘(a) APPLICATION.—Any eligible institution may 

8 apply for a grant under this part by submitting an applica9 tion to the Secretary at such time and in such manner 

10 as determined by the Secretary. Such application shall 

11 demonstrate how the grant funds will be used to improve 

12 postbaccalaureate education opportunities for Hispanic 

13 and low-income students and will lead to greater financial 

14 independence. 

15 ‘‘(b) DURATION.—Grants under this part shall be 

16 awarded for a period not to exceed 5 years. 

17 ‘‘(c) LIMITATION.—The Secretary shall not award 

18 more than 1 grant under this part in any fiscal year to 

19 any Hispanic-serving institution.’’. 

20 (2) COOPERATIVE ARRANGEMENTS.—Section 

21 524 of such Act (as redesignated by subsection 

22 (a)(2)) (20 U.S.C. 1103c) is amended by inserting 

23 ‘‘and section 513’’ after ‘‘section 503’’. 

24 (3) AUTHORIZATION OF APPROPRIATIONS.—

25 Subsection (a) of section 528 of such Act (as redes-
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1 ignated by subsection (a)(2)) (20 U.S.C. 1103g) is 

2 amended to read as follows: 

3 ‘‘(a) AUTHORIZATIONS.—

4 ‘‘(1) PART A.—There are authorized to be ap5 propriated to carry out part A of this title 

6 $175,000,000 for fiscal year 2005 and such sums as 

7 may be necessary for each of the 4 succeeding fiscal 

8 years. 

9 ‘‘(2) PART B.—There are authorized to be ap10 propriated to carry out part B of this title 

11 $125,000,000 for fiscal year 2005 and such sums as 

12 may be necessary for each of the 4 succeeding fiscal 

13 years.’’. 

14 (b) DEFINITIONS.—Section 502(a) of the Higher 

15 Education Act of 1965 (20 U.S.C. 1101a(a)) is amend16 ed—

17 (1) in paragraph (5)—

18 (A) by inserting ‘‘and’’ after the semicolon 

19 at the end of subparagraph (A); 

20 (B) by striking ‘‘; and’’ at the end of sub21 paragraph (B) and inserting a period; and 

22 (C) by striking subparagraph (C); and 

23 (2) by striking paragraph (7). 

24 (c) AUTHORIZED ACTIVITIES.—Section 503(b) of the 

25 Higher Education Act of 1965 (20 U.S.C. 1101b(a)) is 
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1 amended by striking paragraph (7) and inserting the fol2 lowing: 

3 ‘‘(7) Articulation agreements and student sup4 port programs designed to facilitate the transfer 

5 from two-year to four-year institutions.’’

6 (d) ELIMINATION OF WAIT-OUT PERIOD.—Sub7 section (a) of section 504 of the Higher Education Act 

8 of 1965 (20 U.S.C. 1101c(a)) is amended to read as fol9 lows: 

10 ‘‘(a) AWARD PERIOD.—The Secretary may award a 

11 grant to a Hispanic-serving institution under this title for 

12 5 years.’’. 

13 (e) APPLICATION PRIORITY.—Section 521(d) of the 

14 Higher Education Act of 1965 (as redesignated by section 

15 101(a)(2)) (20 U.S.C. 1103(d)) is amended by striking 

16 ‘‘(from funds other than funds provided under this title)’’. 

17 SEC. 5. STRENGTHENING OUTREACH PROGRAMS TO DIS18 ADVANTAGED STUDENTS. 

19 (a) TRIO DURATION OF GRANT.—Section 402A(b) 

20 (20 U.S.C. 1070a–11(b)) is amended by striking para21 graph (2) and inserting the following: 

22 ‘‘(2) DURATION.—Grants or contracts made 

23 under this chapter shall be awarded for a period of 

24 5 years, except that—
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1 ‘‘(A) grants made under section 402G shall 

2 be awarded for a period of 2 years; and 

3 ‘‘(B) grants under section 402H shall be 

4 awarded for a period determined by the Sec5 retary.’’. 

6 (b) MINIMUM GRANTS.—Section 402A(b)(3) is 

7 amended—

8 (1) by striking ‘‘$170,000’’ and inserting 

9 ‘‘$200,000’’; 

10 (2) by striking ‘‘$180,000’’ and inserting 

11 ‘‘$210,000’’; and 

12 (3) by striking ‘‘$190,000’’ and inserting 

13 ‘‘$220,000’’. 

14 (c) MAXIMUM UPWARD BOUND STIPENDS.—Section 

15 402C(e) (20 U.S.C. 1070a–13(e)) is amended—

16 (1) by striking ‘‘$60’’ and inserting ‘‘$100’’; 

17 and 

18 (2) by striking ‘‘$40’’ and inserting ‘‘$60’’. 

19 (d) MAXIMUM MCNAIR STIPENDS.—Section 

20 402E(e)(1) (20 U.S.C. 1070a–15(e)(1)) is amended by 

21 striking ‘‘$2,800’’ and inserting ‘‘$5,000’’. 

22 (e) GEARUP COORDINATION.—Section 404C(a)(2) 

23 (20 U.S.C. 1070a–23(a)(2)) is amended—

24 (1) by striking ‘‘and’’ at the end of subpara25 graph (A); 
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1 (2) by redesignating subparagraph (B) as sub2 paragraph (C); and 

3 (3) by inserting after subparagraph (A) the fol4 lowing new subparagraph: 

5 ‘‘(B) describe activities for coordinating, 

6 complementing, and enhancing services under 

7 this chapter provided by other eligible entities 

8 in the State; and’’. 

9 (f) HEP/CAMP PROGRAM.—Section 418A (20 

10 U.S.C. 1070d–2) is amended—

11 (1) in subsection (b)(1)(B)(i), by inserting ‘‘or 

12 whose spouse’’ after ‘‘themselves’’; 

13 (2) in subsection (b)(3)(B), by inserting ‘‘, in14 cluding preparation for college entrance exams,’’ 

15 after ‘‘program’’; 

16 (3) in subsection (b)(8), by inserting ‘‘, includ17 ing child care and transportation’’ after ‘‘students’’; 

18 (4) by striking ‘‘and’’ at the end of subsection 

19 (b)(7), by striking the period at the end of sub20 section (b)(8) and inserting ‘‘; and’’, and by adding 

21 at the end of subsection (b) the following new para22 graph: 

23 ‘‘(9) follow up activity and reporting require24 ments, except that not more than 2 percent of the 
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1 funds provided under this section may be used for 

2 such purposes.’’; 

3 (5) in subsection (c)(1)(A), by inserting ‘‘or 

4 whose spouse’’ after ‘‘themselves’’; 

5 (6) in subsection (c)(2)(B), by inserting ‘‘(in6 cluding mentoring and guidance of such students)’’ 

7 after ‘‘services’’; 

8 (7) in subsection (c)(2), by striking ‘‘and’’ at 

9 the end of subparagraph (A), by striking the period 

10 at the end of subparagraph (B) and inserting ‘‘; 

11 and’’, and by adding at the end of subsection (c)(2) 

12 the following new subparagraph: 

13 ‘‘(C) for students in any program that 

14 does not award a bachelor’s degree, encour15 aging the transfer to, and persistence in, such 

16 a program, and monitoring the rate of such 

17 transfer, persistence, and completion.’’; and 

18 (8) in subsection (h)—

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

20 ‘‘$15,000,000 for fiscal year 1999 and such 

21 sums as may be necessary for each of the 4 

22 succeeding fiscal years’’ and inserting 

23 ‘‘$24,000,000 for fiscal year 2004 and such 

24 sums as may be necessary for each of the 5 

25 succeeding fiscal years’’; and 
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1 (B) in paragraph (2), by striking 

2 ‘‘$5,000,000 for fiscal year 1999 and such 

3 sums as may be necessary for each of the 4 

4 succeeding fiscal years’’ and inserting 

5 ‘‘$16,000,000 for fiscal year 2004 and such 

6 sums as may be necessary for each of the 5 

7 succeeding fiscal years’’. 

8 SEC. 6. SUPPORT FOR WORKING STUDENTS. 

9 (a) STUDENT CONTRIBUTION FROM AVAILABLE IN10 COME FOR PURPOSES OF NEEDS ANALYSIS.—

11 (1) DEPENDENT STUDENTS.—Section 

12 475(g)(2) of the Higher Education Act of 1965 (20 

13 U.S.C. 1087oo(g)(2)) is amended by striking sub14 paragraph (D) and inserting the following: 

15 ‘‘(D) $9,000;’’. 

16 (2) INDEPENDENT STUDENTS WITHOUT DE17 PENDENTS OTHER THAN A SPOUSE.—Section 

18 476(b)(1)(A) of the Higher Education Act of 1965 

19 (20 U.S.C. 1087pp(b)(1)(A)) is amended by striking 

20 clause (iv) and inserting the following: 

21 ‘‘(iv) $9,000;’’. 

22 (3) INDEPENDENT STUDENTS WITH DEPEND23 ENTS OTHER THAN A SPOUSE.—Section 477(b) of 

24 the Higher Education Act of 1965 (20 U.S.C. 

25 1087qq(b)) is amended—
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1 (A) in paragraph (1)—

2 (i) by striking subparagraph (D) and 

3 inserting the following: 

4 ‘‘(D) $9,000;’’; and 

5 (ii) in subparagraph (E), by striking 

6 ‘‘paragraph (5)’’ and inserting ‘‘paragraph 

7 (4)’’; 

8 (B) by striking paragraph (4); and 

9 (C) by redesignating paragraph (5) as 

10 paragraph (4). 

11 (4) CONFORMING AMENDMENTS.—Section 478 

12 of the Higher Education Act of 1965 (20 U.S.C. 

13 1087rr) is amended—

14 (A) by striking subsection (b) and insert15 ing the following: 

16 ‘‘(b) INCOME PROTECTION ALLOWANCE.—For each 

17 academic year after academic year 1993–1994, the Sec18 retary shall publish in the Federal Register a revised table 

19 of income protection allowances for the purpose of section 

20 475(c)(4). Such revised table shall be developed by in21 creasing each of the dollar amounts contained in the table 

22 in such section by a percentage equal to the estimated per23 centage increase in the Consumer Price Index (as deter24 mined by the Secretary) between December 1992 and the 
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1 December next preceding the beginning of such academic 

2 year, and rounding the result to the nearest $10.’’; and 

3 (B) in subsection (h)—

4 (i) in the first sentence, by striking 

5 ‘‘477(b)(5)’’ and inserting ‘‘477(b)(4)’’; 

6 and 

7 (ii) in the second sentence—

8 (I) by striking ‘‘477(b)(5)(A)’’ 

9 and inserting ‘‘477(b)(4)(A)’’; and 

10 (II) by striking ‘‘477(b)(5)(B)’’ 

11 and inserting ‘‘477(b)(4)(B)’’. 

12 (b) COMMUNITY SERVICE.—Section 441(c)(1) (42 

13 U.S.C. 2751(c)(1)) is amended by inserting after ‘‘child 

14 care services’’ the following: ‘‘campus employees and stu15 dents and’’. 

16 SEC. 7. PUBLIC SERVICE SCHOLARSHIPS. 

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

18 read as follows: 

19 ‘‘SEC. 428K. LOAN FORGIVENESS FOR PUBLIC SERVICE EM20 PLOYEES. 

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

22 ‘‘(1) to reduce the burden of student debt, par23 ticularly for Americans who dedicate their careers to 

24 meeting certain urgent national needs; and 
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1 ‘‘(2) to attract more excellent individuals into 

2 important public service careers. 

3 ‘‘(b) LOAN FORGIVENESS.—

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

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

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

7 Direct Stafford Loan or Federal Direct Unsub8 sidized Stafford Loan, a Federal Direct Consolida9 tion Loan, or a Federal Perkins Loan for any new 

10 borrower after the date of enactment of the Higher 

11 Education Amendments of 1998, who—

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

13 public service position described in paragraph 

14 (2); and 

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

16 the borrower seeks forgiveness. 

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

18 For purposes of this section, an individual shall be 

19 treated as employed in a qualified public service po20 sition if the individual is any of the following: 

21 ‘‘(A) HIGHLY QUALIFIED TEACHERS IN

22 LOW-INCOME COMMUNITIES AND OF MATHE23 MATICS, SCIENCE, AND BILINGUAL AND SPE24 CIAL EDUCATION.—An individual who—
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1 ‘‘(i) is highly qualified as such term is 

2 defined in section 9101 of the Elementary 

3 and Secondary Education Act of 1965; and 

4 ‘‘(ii) (I) has obtained employment as 

5 a teacher for service in a public or non6 profit private elementary or secondary 

7 school which is in the school district of a 

8 local educational agency which is eligible in 

9 such year for assistance pursuant to title I 

10 of the Elementary and Secondary Edu11 cation Act of 1965, and which for the pur12 pose of this paragraph and for that year 

13 has been determined by the Secretary 

14 (pursuant to regulations and after con15 sultation with the State educational agency 

16 of the State in which the school is located) 

17 to be a school in which the enrollment of 

18 children counted under section 1113(a)(5) 

19 of the Elementary and Secondary Edu20 cation Act of 1965 exceeds 40 percent of 

21 the total enrollment of that school; or 

22 ‘‘(II) has obtained employment as a 

23 full-time teacher of mathematics, science, 

24 or bilingual or special education. 
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1 ‘‘(B) EARLY CHILDHOOD EDUCATORS.—An 

2 individual who—

3 ‘‘(i) has received a degree in early 

4 childhood education; and 

5 ‘‘(ii) has obtained employment in a 

6 child care facility, such as employment as 

7 a preschool teacher, in a low-income com8 munity. 

9 ‘‘(C) NURSES.—An individual who has ob10 tained employment—

11 ‘‘(i) in a clinical setting; or 

12 ‘‘(ii) as a member of the nursing fac13 ulty at an accredited school of nursing (as 

14 those terms are defined in section 801 of 

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

16 296)). 

17 ‘‘(D) CHILD WELFARE WORKERS.—An in18 dividual who—

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

20 work or related field with a focus on serv21 ing children and families (as determined in 

22 accordance with regulations prescribed by 

23 the Secretary); and 

24 ‘‘(ii) has obtained employment in pub25 lic or private child welfare services. 
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1 ‘‘(E) NUTRITION PROFESSIONALS.—An in2 dividual who—

3 ‘‘(i) is a certified registered dietician 

4 who has completed a degree in a relevant 

5 field; and 

6 ‘‘(ii) has obtained employment in a 

7 local agency of the special supplemental 

8 nutrition program for women, infants, and 

9 children under section 17 of the Child Nu10 trition Act of 1966 (42 U.S.C. 1786). 

11 ‘‘(F) INFANT AND TODDLER SPECIAL12 ISTS.—An individual who—

13 ‘‘(i) has obtained an associate’s or 

14 bachelor’s degree in a discipline that would 

15 qualify the individual to work in the pro16 gram under part C of the Individuals with 

17 Disabilities Education Act in the State in 

18 which such individual resides; and 

19 ‘‘(ii) has obtained employment in an 

20 occupation that is directly related to such 

21 degree and that (I) provides services to in22 fants, toddlers, and their families under an 

23 individualized family service plan under 

24 section 636 of the Individuals with Disabil25 ities Education Act (20 U.S.C. 1436) or 
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1 an individualized education plan under sec2 tion 614(d) of such Act (20 U.S.C. 

3 1414(d)); or (II) provides training or tech4 nical assistance to providers of such serv5 ices. 

6 ‘‘(G) ADDITIONAL PUBLIC SERVANTS.—An 

7 individual who, as determined by the Secretary 

8 of Education by regulation—

9 ‘‘(i) works in a public service profes10 sion that suffers from a critical lack of 

11 qualified personnel; 

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

13 community; and 

14 ‘‘(iii) is highly qualified. 

15 ‘‘(c) LOAN REPAYMENT.—

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

17 the obligation to repay—

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

19 of service by an individual in a qualified public 

20 service position, 15 percent of the total amount 

21 of principal and interest of the loans described 

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

23 outstanding immediately preceding such first 

24 year of such service; 
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1 ‘‘(B) after each of the third or fourth years 

2 of such service, 20 percent of such total 

3 amount; and 

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

5 percent of such total amount. 

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

7 A loan amount for a loan made under section 428C 

8 or for a Federal Direct Consolidation Loan may be 

9 a qualified loan amount for the purposes of this sub10 section only to the extent that such loan amount was 

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

12 for a borrower who meets the requirements of sub13 section (b), as determined in accordance with regula14 tions prescribed by the Secretary. 

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

16 shall be construed to authorize the refunding of any 

17 repayment of a loan made under section 428 or 

18 428H, a Federal Direct Stafford Loan or Federal 

19 Direct Unsubsidized Stafford Loan, a Federal Direct 

20 Loan, or a Federal Perkins Loan. 

21 ‘‘(4) INTEREST.—If a portion of a loan is re22 paid by the Secretary under this section for any 

23 year, the proportionate amount of interest on such 

24 loan that accrues for such year shall be repaid by 

25 the Secretary. 
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1 ‘‘(5) INELIGIBILITY OF NATIONAL SERVICE

2 AWARD RECIPIENTS.—No student borrower may, for 

3 the same service, receive a benefit under both this 

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

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

6 et seq.). 

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

8 No borrower may receive a reduction of loan obliga9 tions under both this section and section 428J or 

10 460. 

11 ‘‘(7) CONTINUED ELIGIBILITY.—

12 ‘‘(A) TEACHERS.—Any teacher who per13 forms service in a school that—

14 ‘‘(i) meets the requirements of sub15 section (b)(2)(A)(ii)(I) in any year during 

16 such service; and 

17 ‘‘(ii) in a subsequent year fails to 

18 meet the requirements of such subsection, 

19 may continue to teach in such school and shall be 

20 eligible for loan forgiveness pursuant to subsection 

21 (b). 

22 ‘‘(B) TEACHERS IN LOW-INCOME COMMU23 NITIES.—Any early childhood educator who per24 forms service in a community that—
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1 ‘‘(i) meets the definition of low-income 

2 community in any year during such serv3 ice; and 

4 ‘‘(ii) in a subsequent year fails to 

5 meet such definition, 

6 may continue to perform service in such community 

7 and shall be eligible for loan forgiveness pursuant to 

8 subsection (b). 

9 ‘‘(d) REPAYMENT TO ELIGIBLE LENDERS AND

10 HOLDERS.—The Secretary shall pay to each eligible lend11 er or holder for each fiscal year an amount equal to the 

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

13 are subject to repayment pursuant to this section for such 

14 year. 

15 ‘‘(e) APPLICATION FOR REPAYMENT.—

16 ‘‘(1) IN GENERAL.—Each eligible individual de17 siring loan repayment under this section shall sub18 mit a complete and accurate application to the Sec19 retary at such time, in such manner, and containing 

20 such information as the Secretary may require. 

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

22 apply for loan repayment under this section after 

23 completing each of the consecutive years of quali24 fying service described in subsection (c)(1). The bor25 rower may elect to receive forbearance while engaged 
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1 in qualifying service described in subsection (c)(1) 

2 unless the borrower is in deferment while so en3 gaged. 

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

5 prescribe such regulations as may be necessary to carry 

6 out the provisions of this section. 

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

8 ‘‘(1) CHILD CARE FACILITY.—The term ‘child 

9 care facility’ means a facility, including a home, 

10 that—

11 ‘‘(A) provides child care services; and 

12 ‘‘(B) meets applicable State or local gov13 ernment licensing, certification, approval, or 

14 registration requirements, if any. 

15 ‘‘(2) CHILD CARE SERVICES.—The term ‘child 

16 care services’ means activities and services provided 

17 for the education and care of children from birth 

18 through age 5 by an individual who has a degree in 

19 early childhood education, including a preschool 

20 teacher. 

21 ‘‘(3) CHILD WELFARE SERVICES.—The term 

22 ‘child welfare services’ has the meaning given the 

23 term in section 425 of the Social Security Act. 
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1 ‘‘(4) DEGREE.—The term ‘degree’ means an as2 sociate’s or bachelor’s degree awarded by an institu3 tion of higher education. 

4 ‘‘(5) EARLY CHILDHOOD EDUCATION.—The 

5 term ‘early childhood education’ means education in 

6 the area of early child development and education, 

7 child care, or any other educational area related to 

8 early child education or child care that the Secretary 

9 determines to be appropriate. 

10 ‘‘(6) ELIGIBLE NURSE.—The term ‘eligible 

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

12 ‘‘(A) The nurse graduated from—

13 ‘‘(i) an accredited school of nursing 

14 (as those terms are defined in section 801 

15 of the Public Health Service Act (42 

16 U.S.C. 296)); 

17 ‘‘(ii) a nursing center; or 

18 ‘‘(iii) an academic health center that 

19 provides nurse training. 

20 ‘‘(B) The nurse holds a valid and unre21 stricted license to practice nursing in the State 

22 in which the nurse practices in a clinical set23 ting. 

24 ‘‘(C) The nurse holds 1 or more of the fol25 lowing: 
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1 ‘‘(i) A graduate degree in nursing, or 

2 an equivalent degree. 

3 ‘‘(ii) A nursing degree from a colle4 giate school of nursing (as defined in sec5 tion 801 of the Public Health Service Act 

6 (42 U.S.C. 296)). 

7 ‘‘(iii) A nursing degree from an asso8 ciate degree school of nursing (as defined 

9 in section 801 of the Public Health Service 

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

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

12 school of nursing (as defined in section 

13 801 of the Public Health Service Act (42 

14 U.S.C. 296)). 

15 ‘‘(7) ELIGIBLE PRESCHOOL PROGRAM PRO16 VIDER.—The term ‘eligible preschool program pro17 vider’ means a preschool program provider serving 

18 children younger than the age of compulsory school 

19 attendance that is—

20 ‘‘(A) a public or private school; 

21 ‘‘(B) a provider that is supported, spon22 sored, supervised, or administered by a local 

23 educational agency; 
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1 ‘‘(C) a Head Start agency designated 

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

3 seq.); 

4 ‘‘(D) a nonprofit or community-based orga5 nization; or 

6 ‘‘(E) a licensed child care center or family 

7 child care provider. 

8 ‘‘(8) LOW-INCOME COMMUNITY.—In this sub9 section, the term ‘low-income community’ means a 

10 community in which 70 percent of households earn 

11 less than 85 percent of the State median household 

12 income. 

13 ‘‘(9) PRESCHOOL TEACHER.—The term ‘pre14 school teacher’ means an individual—

15 ‘‘(A) who has received at least an associ16 ate’s degree in early childhood education and 

17 who is working toward or who has already re18 ceived a bachelor’s degree in early childhood 

19 education; and 

20 ‘‘(B) who works for an eligible preschool 

21 program provider supporting the children’s cog22 nitive, social, emotional, and physical develop23 ment to prepare the children for the transition 

24 to kindergarten. 
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1 ‘‘(10) YEAR.—The term ‘year’, where applied to 

2 service as a teacher (or service as a member of an 

3 accredited school of nursing (as those terms are de4 fined in section 801 of the Public Health Service Act 

5 (42 U.S.C. 296))), means an academic year as de6 fined by the Secretary.’’. 

7 SEC. 8. PROVIDING RELIEF TO BORROWERS. 

8 (a) ELIMINATION OF LOAN FEES TO BORROWERS.—

9 (1) FEDERAL FAMILY EDUCATION LOAN PRO10 GRAM.—Section 438(c) of the Higher Education Act 

11 of 1965 (20 U.S.C. 1087–1(c)) is amended by add12 ing at the end the following new paragraph: 

13 ‘‘(9) ORIGINATION FEES TERMINATED.—Not14 withstanding any other provision of this subsection, 

15 with respect to any loan made, insured, or guaran16 teed under this part on or after the first July 1 after 

17 the date of enactment of the College Opportunity for 

18 All Act—

19 ‘‘(A) no eligible lender may collect directly 

20 or indirectly from any borrower any origination 

21 fee with respect to such loan, or any other fee 

22 relating to the origination of a loan however de23 scribed; and 
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1 ‘‘(B) the Secretary shall not collect any 

2 origination fee from the lender under this sub3 section.’’. 

4 (2) FEDERAL DIRECT LOAN PROGRAM.—

5 (A) AMENDMENT.—Section 455(c) of such 

6 Act (20 U.S.C. 1087e(c)) is amended to read as 

7 follows: 

8 ‘‘(c) LOAN FEE.—The Secretary shall not collect di9 rectly or indirectly from any borrower any origination fee 

10 with respect to such loan, or any other fee relating to the 

11 origination of a loan however described.’’. 

12 (B) EFFECTIVE DATE.—The amendment 

13 made by subparagraph (A) shall apply with re14 spect to any loan made under part D of title IV 

15 on an after the first July 1 after the date of en16 actment of this Act. 

17 (b) CONSOLIDATION LOAN LENDER OF CHOICE.—

18 (1) STUDENT LOAN BORROWER CHOICE OF

19 LOAN CONSOLIDATOR.—Section 428C(b)(1)(A) of 

20 the Higher Education Act of 1965 (20 U.S.C. 1078–

21 3(b)(1)(A)) is amended by striking ‘‘and (i) the 

22 lender holds’’ and all that follows through ‘‘selected 

23 for consolidation)’’. 

24 (2) CONSOLIDATION LOAN DISCLOSURE BY

25 LENDERS.—Section 428C(b)(1) of the Higher Edu-
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1 cation Act of 1965 (20 U.S.C. 1078–3(b)(1)) is 

2 amended—

3 (A) by striking ‘‘and’’ at the end of sub4 paragraph (E); 

5 (B) by redesignating subparagraph (F) as 

6 subparagraph (G); and 

7 (C) by inserting after subparagraph (E) 

8 the following new subparagraph: 

9 ‘‘(F) that each applicant for a consolida10 tion loan will be provided a clear and con11 spicuous notice, in such form as the Secretary 

12 shall prescribe, describing—

13 ‘‘(i) the effects of a consolidation loan 

14 and its available repayment plans on the 

15 borrower’s interest rate; 

16 ‘‘(ii) the amount of his or her monthly 

17 and total payments, total interest accrued, 

18 and the length of the repayment term; 

19 ‘‘(iii) the ability of the student bor20 rower to pre-pay loans; and 

21 ‘‘(iv) the differences between variable 

22 and fixed interest rates;’’. 

23 (3) DISCLOSURES BY INSTITUTIONS DURING

24 EXIT COUNSELING.—Section 485(b) of the Higher 

25 Education Act of 1965 (20 U.S.C. 1092(b)) is 
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1 amended by adding at the end the following new 

2 paragraph: 

3 ‘‘(3) Each eligible institution shall provide to the bor4 rower of a loan made under part B, D, or E, during the 

5 exit interview required by this subsection, a clear and con6 spicuous notice, in such form as the Secretary shall pre7 scribe, describing the effect of using a consolidation loan 

8 to discharge the borrower’s student loans, and including, 

9 with respect to a series of loan amounts ranges—

10 ‘‘(A) the differences between fixed and variable 

11 interest rates; 

12 ‘‘(B) the effects of consolidation loan and its 

13 available repayment plans on the borrower’s interest 

14 rate, the amount of his or her monthly and total 

15 payments, total interest accrued, and the length of 

16 repayment term; and 

17 ‘‘(C) the ability of the student to prepay 

18 loans.’’. 

19 (c) AUTHORITY TO REFINANCE CONSOLIDATION

20 LOANS.—

21 (1) CONSOLIDATION LOAN REFINANCING.—

22 (A) FFEL CONSOLIDATION LOANS.—Sec23 tion 428C(a)(3)(B) of the Higher Education 

24 Act of 1965 (20 U.S.C. 1078–3(a)(3)(B)) is 
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1 amended by adding at the end the following 

2 new clause: 

3 ‘‘(ii) Notwithstanding clause (i) of this subpara4 graph, a borrower of a consolidation loan on which 

5 the interest is established at a fixed rate under sec6 tion 427A, 428C(c), or 455 may obtain a subsequent 

7 consolidation loan for the purposes of refinancing 

8 such earlier consolidation loan at the prevailing in9 terest rate determined under section 427A(m) or 

10 455(b)(8) if the interest rate on such earlier consoli11 dation loan exceeds such prevailing rate by 1.0 per12 cent or more.’’. 

13 (B) PARALLEL TERMS FOR FEDERAL DI14 RECT CONSOLIDATION LOANS.—Section 455(a) 

15 of the Higher Education Act of 1965 (20 

16 U.S.C. 1087e(a)) is amended—

17 (i) in paragraph (1), by inserting 

18 ‘‘428C,’’ after ‘‘428B,’’; and 

19 (ii) in paragraph (2)—

20 (I) by striking ‘‘and’’ at the end 

21 of subparagraph (B); 

22 (II) by redesignating subpara23 graph (C) as subparagraph (D); and 

24 (III) by inserting after subpara25 graph (B) the following: 
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1 ‘‘(C) section 428C shall be know as ‘Fed2 eral Direct Consolidation Loans’.’’. 

3 (2) REFINANCED CONSOLIDATION LOANS IN4 TEREST RATE.—

5 (A) FFEL CONSOLIDATION LOANS.—Sec6 tion 427A of the Higher Education Act of 1965 

7 (20 U.S.C. 1077a) is amended—

8 (i) by redesignating subsection (m) 

9 and (n) as subsections (n) and (o), respec10 tively; and 

11 (ii) by inserting after subsection (l) 

12 the following: 

13 ‘‘(m) REFINANCED CONSOLIDATION LOANS.—

14 ‘‘(1) PREVAILING RATE.—Notwithstanding sub15 sections (h), (k), and (l), with respect to any loan 

16 made pursuant to section 428C(a)(3)(B)(ii) for the 

17 purposes of refinancing an earlier consolidation loan, 

18 the applicable rate of interest shall, for any loan 

19 made during any 12-month period beginning on July 

20 1 and ending on June 30, be determined on the pre21 ceding June 1 (and remain in effect for the duration 

22 of the loan) and be equal to—

23 ‘‘(A) the bond equivalent rate of 91-day 

24 Treasury bills auctioned at the final auction 

25 held prior to such June 1; plus 
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1 ‘‘(B) 2.3 percent, 

2 except that such rate shall not exceed 8.25 percent. 

3 ‘‘(2) RECOVERY OF EXCESS INTEREST.—If, 

4 with respect to a consolidation loan on which the ap5 plicable interest rate is determined under this sub6 section, the applicable interest rate for any 3-month 

7 period exceeds the special allowance rate applicable 

8 to such loan under section 438(b)(2)(I) for such pe9 riod, then an adjustment shall be made—

10 ‘‘(A) by calculating the excess interest in 

11 the amount computed under paragraph (3) of 

12 this subsection; and 

13 ‘‘(B) by crediting the excess interest to the 

14 Government. 

15 ‘‘(3) AMOUNT OF ADJUSTMENT.—The amount 

16 of any adjustment of interest on a loan to be made 

17 under this subsection for any quarter shall be equal 

18 to—

19 ‘‘(A) the applicable interest rate minus the 

20 special allowance rate determined under section 

21 438(a)(2)(I); multiplied by 

22 ‘‘(B) the average daily principal balance of 

23 the loan (not including unearned interest added 

24 to principal) during such calendar quarter; di25 vided by 
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1 ‘‘(C) four.’’. 

2 (B) REFINANCED FEDERAL DIRECT CON3 SOLIDATION LOANS.—Section 455(b) of the 

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

5 1087e(b)) is amended—

6 (i) by redesignating paragraphs (8) 

7 and (9) as paragraphs (9) and (10), re8 spectively; and 

9 (ii) by inserting after paragraph (7) 

10 the following: 

11 ‘‘(8) PREVAILING RATE CONSOLIDATION

12 LOANS.—Notwithstanding the preceding paragraphs 

13 of this subsection, with respect to any loan made 

14 pursuant to section 428C(a)(3)(B)(ii) for the pur15 poses of refinancing an earlier consolidation loan, 

16 the applicable rate of interest shall, for any loan 

17 made during any 12-month period beginning on July 

18 1 and ending on June 30, be determined on the pre19 ceding June 1 (and remain in effect for the duration 

20 of the loan) and be equal to—

21 ‘‘(A) the bond equivalent rate of 91-day 

22 Treasury bills auctioned at the final auction 

23 held prior to such June 1; plus 

24 ‘‘(B) 2.3 percent, 
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1 except that such rate shall not exceed 8.25 per2 cent.’’. 

3 (C) CONFORMING AMENDMENT.—Section 

4 438(b)(2)(I) is amended by striking ‘‘section 

5 427A(k)(4) or (l)(3)’’ each place it appears in 

6 clauses (iv) and (vi) and inserting ‘‘section 

7 427A(k)(4), (l)(3), or (m)’’. 

8 SEC. 9. SIMPLIFYING THE STUDENT AID PROCESS. 

9 (a) STUDENT ELIGIBILITY.—Subsection (r) of sec10 tion 484 (20 U.S.C. 1091) is repealed. 

11 (b) SHORT FORM FOR SIMPLIFIED NEEDS TEST.—

12 (1) FAFSA-EZ IN LIEU OF FAFSA.—Sub13 section (a) of section 479 (20 U.S.C. 1087ss(a)) is 

14 amended to read as follows: 

15 ‘‘(a) SIMPLIFIED APPLICATION: FAFSA-EZ.—

16 ‘‘(1) IN GENERAL.—The Secretary shall develop 

17 and use a simplified application form, to be known 

18 as the ‘FAFSA-EZ’, to be used in lieu of the com19 mon financial reporting form prescribed under sec20 tion 483(a) for families described in subsections (b) 

21 and (c) of this section. 

22 ‘‘(2) REDUCED DATA REQUIREMENTS.—The 

23 simplified application form shall—

24 ‘‘(A) in the case of a family meeting the 

25 requirements of subsection (b)(1), permit such 
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1 family to submit only the data elements re2 quired under subsection (b)(2) for the purposes 

3 of establishing eligibility for student financial 

4 aid under this part; and 

5 ‘‘(B) in the case of a family meeting the 

6 requirements of subsection (c), permit such 

7 family to be treated as having an expected fam8 ily contribution equal to zero for purposes of es9 tablishing such eligibility and to submit only the 

10 data elements required to make a determination 

11 under subsection (c). 

12 ‘‘(3) AVAILABILITY OF MEANS TO DETERMINE

13 ELIGIBILITY.—The Secretary shall provide, both via 

14 a widely disseminated printed form and an Internet 

15 or other electronic means, the capability for individ16 uals to determine easily, by entering relevant data, 

17 whether or not they qualify for the submission of a 

18 simplified application form under this subsection. 

19 The capability provided under this paragraph shall 

20 include the capability to determine approximately 

21 the amount of grant, work-study, and loan assist22 ance an individual would be eligible for under this 

23 title upon completion and verification of the sim24 plified application form. 
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1 ‘‘(4) FREE AVAILABILITY AND PROCESSING.—

2 The provisions of section 483(a)(2) shall apply to 

3 the FAFSA-EZ as if the FAFSA-EZ were the com4 mon financial reported form prescribed by the Sec5 retary under section 483(a)(1), and the data col6 lected by means of the FAFSA-EZ shall be available 

7 to institutions of higher education, guaranty agen8 cies, and States in accordance with section 

9 483(a)(3).’’. 

10 (2) ADDITIONAL QUALIFYING FORMS.—Section 

11 479(b)(3) of such Act is amended—

12 (A) by striking ‘‘or’’ at the end of subpara13 graph (B); 

14 (B) by striking the period at the end of 

15 subparagraph (C) and inserting a semicolon; 

16 and 

17 (C) by adding at the end the following new 

18 subparagraphs: 

19 ‘‘(D) a form for applying for supplemental 

20 security income under title XVI of the Social 

21 Security Act; 

22 ‘‘(E) a form for applying for Medicaid 

23 under title XVIII of the Social Security Act; 

24 ‘‘(F) a form for applying for food stamps 

25 under the Food Stamp Act of 1977; or 
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1 ‘‘(G) a schedule for applying for the 

2 earned income tax credit under section 32 of 

3 the Internal Revenue Code of 1986.’’. 

4 (c) SIMPLIFICATION OF THE FREE APPLICATION FOR

5 FEDERAL STUDENT AID (FAFSA).—Section 483(a) of 

6 the Higher Education Act of 1965 (20 U.S.C. 1090(a)) 

7 is amended—

8 (1) by striking paragraph (1) and inserting the 

9 following: 

10 ‘‘(1) SINGLE FORM REQUIRED.—The Secretary, 

11 in cooperation with representatives of agencies and 

12 organizations involved in student financial assist13 ance, shall produce, distribute, and process free of 

14 charge a common financial reporting form to be 

15 used to determine the need and eligibility of a stu16 dent for financial assistance under parts A through 

17 E of this title (other than under subpart 4 of part 

18 A). Such form shall satisfy the requirements of sec19 tion 401(d) of this title. Subject to paragraph (8)—

20 ‘‘(A) the Secretary shall include on the 

21 form developed under this subsection such data 

22 items as the Secretary determines are appro23 priate for inclusion; and 
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1 ‘‘(B) such items shall be selected in con2 sultation with States to assist in the awarding 

3 of State financial assistance.’’; and 

4 (2) by adding at the end the following new 

5 paragraph: 

6 ‘‘(8) SIMPLIFICATION.—Within 5 years after 

7 the date of enactment of the College Opportunity for 

8 All Act, the Secretary shall initiate a proceeding to 

9 revise the common financial reporting form under 

10 this section to reduce the number of data items re11 quired to be provided by applicants for student fi12 nancial assistance under this title (other than sub13 part 4 of part A). The objective of such proceeding 

14 shall be to obtain a 50 percent reduction in the 

15 number of such data items. The Secretary shall, 

16 within 2 years after the date of enactment of such 

17 Act submit an interim report to the Congress on the 

18 progress made in achieving such objective, and iden19 tifying the impediments to further progress.’’. 

20 SEC. 10. EXPANSION OF VOLUNTARY FLEXIBLE AGREE21 MENTS WITH GUARANTY AGENCIES. 

22 (a) AMENDMENT.—Section 428A(a) of the Higher 

23 Education Act of 1965 (20 U.S.C.1078–1(a)) is amended 

24 by striking paragraph (3) and inserting the following: 
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1 ‘‘(3) ELIGIBILITY.—Any guaranty agency or 

2 consortium thereof may enter into a voluntary flexi3 ble agreement with the Secretary.’’. 

4 (b) IMMEDIATE EFFECTIVE DATE.—The amendment 

5 made by paragraph (1) shall take effect on the date of 

6 enactment of this Act. 

7 SEC. 11. ALLOWANCE FOR STATE AND OTHER TAXES. 

8 Notwithstanding any other provision of law, the an9 nual updates to the allowance for State and other taxes 

10 in the tables used in the Federal Needs Analysis Method11 ology to determine a student’s expected family contribu12 tion for the award year 2004–2005 under part F of title 

13 IV of the Higher Education Act of 1965 (20 U.S.C. 

14 1087kk et seq.), published in the Federal Register on Fri15 day, May 30, 2003 (68 Fed. Reg. 32473), shall be deemed 

16 to never have been promulgated.

Æ