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[111th Congress Public Law 39]
[From the U.S. Government Printing Office]

[[Page 1933]]

                 HIGHER EDUCATION TECHNICAL CORRECTIONS

[[Page 123 STAT. 1934]]

Public Law 111-39
111th Congress

                                 An Act

 
 To make technical corrections to the Higher Education Act of 1965, and 
       for other purposes. <<NOTE: July 1, 2009 -  [H.R. 1777]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.
Sec. 2. References.
Sec. 3. Effective date.

                       TITLE I--GENERAL PROVISIONS

Sec. 101. General provisions.

                  TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality enhancement.

                      TITLE III--INSTITUTIONAL AID

Sec. 301. Institutional aid.
Sec. 302. Multiagency study of minority science programs.

                      TITLE IV--STUDENT ASSISTANCE

Sec. 401. Grants to students in attendance at institutions of higher 
           education.
Sec. 402. Federal Family Education Loan Program.
Sec. 403. Federal work-study programs.
Sec. 404. Federal Direct Loan Program.
Sec. 405. Federal Perkins Loans.
Sec. 406. Need analysis.
Sec. 407. General provisions of title IV.
Sec. 408. Program integrity.
Sec. 409. Waiver of master calendar and negotiated rulemaking 
           requirements.

                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Developing institutions.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. International education programs.

            TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT

Sec. 701. Graduate and postsecondary improvement programs.

                     TITLE VIII--ADDITIONAL PROGRAMS

Sec. 801. Additional programs.
Sec. 802. Amendments to other higher education Acts.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall

[[Page 123 STAT. 1935]]

be considered to be made to a section or other provision of the Higher 
Education Act of 1965 (20 U.S.C. 1001 et seq.).
SEC. 3. <<NOTE: 20 USC 1001 note.>>  EFFECTIVE DATE.

    Except as otherwise provided in this Act, the amendments made by 
this Act shall take effect as if enacted on the date of enactment of the 
Higher Education Opportunity Act (Public Law 110-315).

                       TITLE I--GENERAL PROVISIONS

SEC. 101. GENERAL PROVISIONS.

    (a) Higher Education Opportunity Act.--
            (1) General definition of institution of higher education.--
        Section 101(b) of the Higher Education Opportunity Act (Public 
        Law 110-315) <<NOTE: 20 USC 1001 note.>>  is amended by striking 
        ``July 1, 2010'' and inserting ``the date of enactment of this 
        Act''.
            (2) Definition of institution of higher education for 
        purposes of title iv programs.--Section 102(e) <<NOTE: Effective 
        date.>>  of the Higher Education Opportunity Act (Public Law 
        110-315) <<NOTE: 20 USC 1002 note.>>  is amended by striking the 
        period at the end and inserting ``, except that, with respect to 
        foreign nursing schools that were eligible to participate in 
        part B of title IV as of the day before the date of enactment of 
        this Act, the amendments made by subsection (a)(1)(D) shall take 
        effect on July 1, 2012.''.

    (b) Higher Education Act of 1965.--Title I (20 U.S.C. 1001 et seq.) 
is amended--
            (1) in section 102(a)(2)(D) (20 U.S.C. 1002(a)(2)(D)), by 
        striking ``under part B'' and inserting ``under part B of title 
        IV'';
            (2) in section 111(b) (20 U.S.C. 1011(b)), by striking 
        ``With'' and inserting ``with'';
            (3) in section 131(a)(3)(A)(iii)(I) (20 U.S.C. 
        1015(a)(3)(A)(iii)(I)), by striking ``section 428(a)(2)(C)(i)'' 
        and inserting ``section 428(a)(2)(C)(ii)'';
            (4) in section 136(d)(1) (20 U.S.C. 1015e(d)(1)), by 
        striking ``(Family Educational Rights and Privacy Act of 1974)'' 
        and inserting ``(commonly known as the `Family Educational 
        Rights and Privacy Act of 1974')'';
            (5) in section 141 (20 U.S.C. 1018)--
                    (A) in the matter preceding subparagraph (A) of 
                subsection (c)(3), by striking ``under this title'' and 
                inserting ``under title IV''; and
                    (B) in subsection (d)(3), by striking ``appropriate 
                committees of Congress'' and inserting ``authorizing 
                committees'';
            (6) in section 153(a)(1)(B)(iii)(V) (20 U.S.C. 
        1019b(a)(1)(B)(iii)(V)), by striking ``borrowers who take out 
        loans under'' each place the term appears and inserting 
        ``borrowers of loans made under''; and
            (7) in section 155(a) (20 U.S.C. 1019d(a)), by striking 
        paragraph (4) and inserting the following:
            ``(4) include a place to provide information on--
                    ``(A) the applicant's cost of attendance at the 
                institution of higher education, as determined by the 
                institution under part F of title IV;

[[Page 123 STAT. 1936]]

                    ``(B) the applicant's estimated financial 
                assistance, including amounts of financial assistance 
                used to replace the expected family contribution, as 
                determined by the institution, in accordance with title 
                IV, for students who have completed the Free Application 
                for Federal Student Aid; and
                    ``(C) the difference between the amounts under 
                subparagraphs (A) and (B), as applicable; and''.

                  TITLE II--TEACHER QUALITY ENHANCEMENT

SEC. 201. TEACHER QUALITY ENHANCEMENT.

    Title II (20 U.S.C. 1021 et seq.) is amended--
            (1) in section 200(22) (20 U.S.C. 1021(22)), by striking 
        subparagraph (D) and inserting the following:
                    ``(D) prior to completion of the program--
                          ``(i) attains full State certification or 
                      licensure and becomes highly qualified; and
                          ``(ii) acquires a master's degree not later 
                      than 18 months after beginning the program.'';
            (2) in section 202 (20 U.S.C. 1022a)--
                    (A) in subsection (b)(6)(E)(ii), by striking 
                ``section 1111(b)(2)'' and inserting ``section 
                1111(b)(1)'';
                    (B) in subsection (c)(1), by striking ``pre-
                baccalaureate'';
                    (C) in subsection (d)--
                          (i) in the heading, by striking ``Pre-
                      Baccalaureate'' and inserting ``the''; and
                          (ii) in the matter preceding paragraph (1), by 
                      striking ``An eligible partnership that receives a 
                      grant to carry out an effective program for the 
                      pre-baccalaureate preparation of teachers shall 
                      carry out a program that includes all of the 
                      following:'' and inserting ``An eligible 
                      partnership that receives a grant to carry out a 
                      program for the preparation of teachers shall 
                      carry out an effective pre-baccalaureate teacher 
                      preparation program or a 5th year initial 
                      licensing program that includes all of the 
                      following:'';
                    (D) in subsection (e)(2)--
                          (i) in subparagraph (A)(ii), by striking ``to 
                      earn'' and inserting ``leading to''; and
                          (ii) in subparagraph (C)--
                                    (I) in clause (i), by striking 
                                ``one-year'' before ``teaching residency 
                                program''; and
                                    (II) in clause (iii)(I), by striking 
                                ``one-year''; and
                    (E) in subsection (i)(3), by striking ``consent of'' 
                and inserting ``consent to''; and
            (3) in section 231(a)(1) (20 U.S.C. 1032(a)(1)), by striking 
        ``serve graduate'' and inserting ``assist in the graduation 
        of''.

                      TITLE III--INSTITUTIONAL AID

SEC. 301. INSTITUTIONAL AID.

    Title III (20 U.S.C. 1051 et seq.) is amended--

[[Page 123 STAT. 1937]]

            (1) in section 316 (20 U.S.C. 1059c)--
                    (A) in subsection (a), by striking ``Indian Tribal'' 
                and inserting ``Tribal''; and
                    (B) in subsection (b)--
                          (i) in paragraph (1), by striking ``the 
                      Tribally Controlled College or University 
                      Assistance Act of 1978'' and inserting ``the 
                      Tribally Controlled Colleges and Universities 
                      Assistance Act of 1978'';
                          (ii) in paragraph (2), by striking ``the 
                      Tribally Controlled College or University 
                      Assistance Act of 1978'' and inserting ``the 
                      Tribally Controlled Colleges and Universities 
                      Assistance Act of 1978''; and
                          (iii) in paragraph (3)(A), by striking ``the 
                      Navajo Community College Assistance Act of 1978'' 
                      and inserting ``the Navajo Community College 
                      Act'';
            (2) in section 318(b)(1) (20 U.S.C. 1059e(b)(1)), by 
        striking subparagraph (F) and inserting the following:
                    ``(F) is not receiving assistance under--
                          ``(i) part B;
                          ``(ii) part A of title V; or
                          ``(iii) an annual authorization of 
                      appropriations under the Act of March 2, 1867 (14 
                      Stat. 438; 20 U.S.C. 123).'';
            (3) in section 323(a) (20 U.S.C. 1062(a)), in the matter 
        preceding paragraph (1), by striking ``in any fiscal year'' and 
        inserting ``for any fiscal year,'';
            (4) in section 324(d) (20 U.S.C. 1063(d))--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively;
                    (B) by striking ``Notwithstanding subsections (a)'' 
                and inserting ``(1) Notwithstanding subsections (a)''; 
                and
                    (C) by adding at the end the following:

    ``(2) If the amount appropriated pursuant to section 399(a)(2)(A) 
for any fiscal year is not sufficient to pay the minimum allotment 
required by paragraph (1) to all part B institutions, the amount of such 
minimum allotments shall be ratably reduced. If additional sums become 
available for such fiscal year, such reduced allocations shall be 
increased on the same basis as the basis on which they were reduced 
(until the amount allotted equals the minimum allotment required by 
paragraph (1)).'';
            (5) in section 351(a) (20 U.S.C. 1067a(a))--
                    (A) by striking ``section 304(a)(1)'' and inserting 
                ``section 303(a)(1)''; and
                    (B) by striking ``of 1979'';
            (6) in section 355(a) (20 U.S.C. 1067e(a)), by striking 
        ``302'' and inserting ``312'';
            (7) in section 371(c) (20 U.S.C. 1067q(c))--
                    (A) in paragraph (3)(D), by striking ``402A(g)'' and 
                inserting ``402A(h)'';
                    (B) in paragraph (4), by striking ``402A(g)'' and 
                inserting ``402A(h)''; and
                    (C) in paragraph (9)--
                          (i) in subparagraph (C)(iii), by striking 
                      ``402A(g)'' and inserting ``402A(h)''; and
                          (ii) by amending subparagraph (F) to read as 
                      follows:
                    ``(F) is not receiving assistance under--

[[Page 123 STAT. 1938]]

                          ``(i) part B;
                          ``(ii) part A of title V; or
                          ``(iii) an annual authorization of 
                      appropriations under the Act of March 2, 1867 (14 
                      Stat. 438; 20 U.S.C. 123).''; and
            (8) in section 392(a)(6) (20 U.S.C. 1068a(a)(6)), by 
        striking ``College or University'' and inserting ``Colleges and 
        Universities''.
SEC. 302. MULTIAGENCY STUDY OF MINORITY SCIENCE PROGRAMS.

    Section 1024 (20 U.S.C. 1067d) is repealed.

                      TITLE IV--STUDENT ASSISTANCE

SEC. 401. GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF 
                        HIGHER EDUCATION.

    (a) Amendments.--Part A of title IV (20 U.S.C. 1070 et seq.) is 
amended--
            (1) in section 400(b) (20 U.S.C. 1070(b)), by striking ``1 
        through 8'' and inserting ``1 through 9'';
            (2) in section 401 (20 U.S.C. 1070a)--
                    (A) in the second sentence of subsection (a)(1), by 
                striking ``manner,,'' and inserting ``manner,'';
                    (B) in subsection (b)(1), by striking ``section 
                401'' and inserting ``this section''; and
                    (C) in subsection (b)(9)(A)--
                          (i) in clause (vi), by striking 
                      ``$105,000,000'' and inserting ``$258,000,000''; 
                      and
                          (ii) in clause (viii), by striking 
                      ``$4,400,000,000'' and inserting 
                      ``$4,452,000,000'';
            (3) by striking paragraph (4) of section 401(f) (20 U.S.C. 
        1070a(f)), as added by section 401(c) of the Higher Education 
        Opportunity Act (Public Law 110-315);
            (4) in section 402A (20 U.S.C. 1070a-11)--
                    (A) in subsection (b)(1), by striking 
                ``organizations including'' and inserting 
                ``organizations, including''; and
                    (B) in subsection (c)(8)(C)(iv)(I), by inserting 
                ``to be'' after ``determined'';
            (5) in section 402E(d)(2)(C) (20 U.S.C. 1070a-15(d)(2)(C)), 
        by striking ``320.'' and inserting ``320'';
            (6) in section 415E(b)(1)(B) (20 U.S.C. 1070c-3a(b)(1)(B))--
                    (A) in clause (i), by striking ``If a'' and 
                inserting ``Except as provided in clause (ii), if a'';
                    (B) by redesignating clause (ii) as clause (iii); 
                and
                    (C) by inserting after clause (i) (as amended by 
                subparagraph (A)) the following:
                          ``(ii) Special continuation and transition 
                      rule.--If a State that applied for and received an 
                      allotment under this section for fiscal year 2010 
                      pursuant to subsection (j) meets the 
                      specifications established in the State's 
                      application under subsection (c) for fiscal year 
                      2011, then the Secretary shall make an allotment 
                      to such State for fiscal year 2011 that is not 
                      less than the allotment made pursuant to 
                      subsection (j) to such State for fiscal year 2010 
                      under this section (as this section was in effect 
                      on the day

[[Page 123 STAT. 1939]]

                      before the date of enactment of the Higher 
                      Education Opportunity Act (Public Law 110-
                      315)).'';
            (7) in section 419C(b)(1) (20 U.S.C. 1070d-33(b)(1)), by 
        inserting ``and'' after the semicolon at the end;
            (8) in section 419D(d) (20 U.S.C. 1070d-34(d)), by striking 
        ``1134'' and inserting ``134''; and
            (9) by adding at the end the following:

           ``Subpart 10--Scholarships for Veteran's Dependents

``SEC. 420R. <<NOTE: 20 USC 1070h note.>>  SCHOLARSHIPS FOR 
                          VETERAN'S DEPENDENTS.

    ``(a) Definition of Eligible Veteran's Dependent.--The term 
`eligible veteran's dependent' means a dependent or an independent 
student--
            ``(1) whose parent or guardian was a member of the Armed 
        Forces of the United States and died as a result of performing 
        military service in Iraq or Afghanistan after September 11, 
        2001; and
            ``(2) who, at the time of the parent or guardian's death, 
        was--
                    ``(A) less than 24 years of age; or
                    ``(B) enrolled at an institution of higher education 
                on a part-time or full-time basis.

    ``(b) Grants.--
            ``(1) In general.--The Secretary shall award a grant to each 
        eligible veteran's dependent to assist in paying the eligible 
        veteran's dependent's cost of attendance at an institution of 
        higher education.
            ``(2) Designation.--Grants made under this section shall be 
        known as `Iraq and Afghanistan Service Grants'.

    ``(c) Prevention of Double Benefits.--No eligible veteran's 
dependent may receive a grant under both this section and section 401.
    ``(d) Terms and Conditions.--The Secretary shall award grants under 
this section in the same manner, and with the same terms and conditions, 
including the length of the period of eligibility, as the Secretary 
awards Federal Pell Grants under section 401, except that--
            ``(1) the award rules and determination of need applicable 
        to the calculation of Federal Pell Grants, shall not apply to 
        grants made under this section;
            ``(2) the provisions of subsection (a)(3), subsection 
        (b)(1), the matter following subsection (b)(2)(A)(v), subsection 
        (b)(3), and subsection (f), of section 401 shall not apply; and
            ``(3) a grant made under this section to an eligible 
        veteran's dependent for any award year shall equal the maximum 
        Federal Pell Grant available for that award year, except that 
        such a grant under this section--
                    ``(A) shall not exceed the cost of attendance of the 
                eligible veteran's dependent for that award year; and
                    ``(B) shall be adjusted to reflect the attendance by 
                the eligible veteran's dependent on a less than full-
                time basis in the same manner as such adjustments are 
                made under section 401.

    ``(e) Estimated Financial Assistance.--For purposes of 
determinations of need under part F, a grant awarded under this section

[[Page 123 STAT. 1940]]

shall not be treated as estimated financial assistance as described in 
sections 471(3) and 480(j).
    ``(f) Authorization and Appropriations of Funds.--There are 
authorized to be appropriated, and there are appropriated, out of any 
money in the Treasury not otherwise appropriated, for the Secretary to 
carry out this section, such sums as may be necessary for fiscal year 
2010 and each succeeding fiscal year.''.
    (b) <<NOTE: 20 USC 1070h note.>>  Effective Date.--The amendment 
made by subsection (a)(9) shall take effect on July 1, 2010.

    (c) Higher Education Opportunity Act.--Section 404 of the Higher 
Education Opportunity Act (Public Law 110-315) <<NOTE: 20 USC 1070a-25 
note.>>  is amended by adding at the end the following new subsection:

    ``(i) Effective Date; Transition.--
            ``(1) <<NOTE: Applicability.>>  In general.--The amendments 
        made by subsection (e) shall apply to grants made under chapter 
        2 of subpart 2 of part A of title IV of the Higher Education Act 
        of 1965 (20 U.S.C. 1070a-21 et seq.) on or after the date of 
        enactment of this Act, except that a recipient of a grant under 
        such chapter that is made prior to such date may elect to apply 
        the requirements contained in the amendments made by subsection 
        (e) to that grant if the grant recipient informs the Secretary 
        of the election.
            ``(2) Special rule.--A grant recipient may make the election 
        described in paragraph (1) only if the election does not 
        decrease the amount of the scholarship promised to an individual 
        student under the grant.''.
SEC. 402. FEDERAL FAMILY EDUCATION LOAN PROGRAM.

    (a) Amendment to Provision Amended by the College Cost Reduction and 
Access Act.--
            (1) In general.--Section 428(b)(1)(G)(i) (20 U.S.C. 
        1078(b)(1)(G)(i)), as amended by section 303 of the College Cost 
        Reduction and Access Act (Public Law 110-84), is amended by 
        striking ``or 439(q)''.
            (2) Effective date.--The amendment <<NOTE: Applicability. 20 
        USC 1078 note.>>  made by paragraph (1) shall be effective as if 
        enacted as part of the amendment in section 303(a) of the 
        College Cost Reduction and Access Act (Public Law 110-84), shall 
        take effect on October 1, 2012, and shall apply with respect to 
        loans made on or after such date.

    (b) Entrance Counseling Functions.--
            (1) Guaranty agencies.--Section 428(b)(3) (20 U.S.C. 
        1078(b)(3)) is amended--
                    (A) in subparagraph (C), by inserting ``or 485(l)'' 
                after ``section 485(b)''; and
                    (B) in subparagraph (D), by inserting ``or 485(l)'' 
                after ``section 485(b)''.
            (2) Eligible lenders.--Section 435(d)(5) (20 U.S.C. 
        1085(d)(5)) is amended--
                    (A) in subparagraph (E), by inserting ``or 485(l)'' 
                after ``section 485(b)''; and
                    (B) in subparagraph (F), by inserting ``or 485(l)'' 
                after ``section 485(b)''.

    (c) Amendment to Provision Amended by the Higher Education 
Opportunity Act.--
            (1) In general.--Section 428C(c)(3)(A) (20 U.S.C. 1078-
        3(c)(3)(A)), as amended by section 425 of the Higher Education

[[Page 123 STAT. 1941]]

        Opportunity Act (Public Law 110-315), is amended by striking 
        ``section 493C'' and inserting ``section 493C,''.
            (2) <<NOTE: 20 USC 1078-3 note.>>  Effective date.--The 
        amendment made by paragraph (1) shall be effective as if enacted 
        as part of the amendments in section 425(d)(1) of the Higher 
        Education Opportunity Act (Public Law 110-315), and shall take 
        effect on July 1, 2009.

    (d) Rehabilitation of Student Loans.--
            (1) Section 428F (20 U.S.C. 1078-6) is amended--
                    (A) in subsection (a)--
                          (i) by amending paragraph (1) to read as 
                      follows:
            ``(1) Sale or assignment of loan.--
                    ``(A) In general.--Each guaranty agency, upon 
                securing 9 payments made within 20 days of the due date 
                during 10 consecutive months of amounts owed on a loan 
                for which the Secretary has made a payment under 
                paragraph (1) of section 428(c), shall--
                          ``(i) if practicable, sell the loan to an 
                      eligible lender; or
                          ``(ii) <<NOTE: Deadline.>>  on or before 
                      September 30, 2011, assign the loan to the 
                      Secretary if--
                                    ``(I) the Secretary has determined 
                                that market conditions unduly limit a 
                                guaranty agency's ability to sell loans 
                                under clause (i); and
                                    ``(II) the guaranty agency has been 
                                unable to sell loans under clause (i).
                    ``(B) Monthly payments.--Neither the guaranty agency 
                nor the Secretary shall demand from a borrower as 
                monthly payment amounts described in subparagraph (A) 
                more than is reasonable and affordable based on the 
                borrower's total financial circumstances.
                    ``(C) Consumer reporting agencies.--Upon the sale or 
                assignment of the loan, the Secretary, guaranty agency 
                or other holder of the loan shall request any consumer 
                reporting agency to which the Secretary, guaranty agency 
                or holder, as applicable, reported the default of the 
                loan, to remove the record of the default from the 
                borrower's credit history.
                    ``(D) Duties upon sale.--With respect to a loan sold 
                under subparagraph (A)(i)--
                          ``(i) the guaranty agency--
                                    ``(I) shall repay the Secretary 81.5 
                                percent of the amount of the principal 
                                balance outstanding at the time of such 
                                sale, multiplied by the reinsurance 
                                percentage in effect when payment under 
                                the guaranty agreement was made with 
                                respect to the loan; and
                                    ``(II) may, in order to defray 
                                collection costs--
                                            ``(aa) charge to the 
                                        borrower an amount not to exceed 
                                        18.5 percent of the outstanding 
                                        principal and interest at the 
                                        time of the loan sale; and
                                            ``(bb) retain such amount 
                                        from the proceeds of the loan 
                                        sale; and
                          ``(ii) the Secretary shall reinstate the 
                      Secretary's obligation to--
                                    ``(I) reimburse the guaranty agency 
                                for the amount that the agency may, in 
                                the future, expend

[[Page 123 STAT. 1942]]

                                to discharge the guaranty agency's 
                                insurance obligation; and
                                    ``(II) pay to the holder of such 
                                loan a special allowance pursuant to 
                                section 438.
                    ``(E) Duties upon assignment.--With respect to a 
                loan assigned under subparagraph (A)(ii)--
                          ``(i) the guaranty agency shall add to the 
                      principal and interest outstanding at the time of 
                      the assignment of such loan an amount equal to the 
                      amount described in subparagraph (D)(i)(II)(aa); 
                      and
                          ``(ii) the Secretary shall pay the guaranty 
                      agency, for deposit in the agency's Operating Fund 
                      established pursuant to section 422B, an amount 
                      equal to the amount added to the principal and 
                      interest outstanding at the time of the assignment 
                      in accordance with clause (i).
                    ``(F) Eligible lender limitation.--A loan shall not 
                be sold to an eligible lender under subparagraph (A)(i) 
                if such lender has been found by the guaranty agency or 
                the Secretary to have substantially failed to exercise 
                the due diligence required of lenders under this part.
                    ``(G) Default due to error.--A loan that does not 
                meet the requirements of subparagraph (A) may also be 
                eligible for sale or assignment under this paragraph 
                upon a determination that the loan was in default due to 
                clerical or data processing error and would not, in the 
                absence of such error, be in a delinquent status.'';
                          (ii) in paragraph (2)--
                                    (I) by striking ``paragraph (1) of 
                                this subsection'' and inserting 
                                ``paragraph (1)(A)(i)''; and
                                    (II) by striking ``paragraph 
                                (1)(B)(ii) of this subsection'' and 
                                inserting ``paragraph (1)(D)(ii)(I)'';
                          (iii) in paragraph (3)--
                                    (I) by striking ``sold under 
                                paragraph (2)'' and inserting ``sold or 
                                assigned under paragraph (1)(A)''; and
                                    (II) by striking ``sale.'' and 
                                inserting ``sale or assignment.'';
                          (iv) in paragraph (4), by striking ``which is 
                      sold under paragraph (1) of this subsection'' and 
                      inserting ``that is sold or assigned under 
                      paragraph (1)''; and
                          (v) in paragraph (5), by inserting ``(whether 
                      by loan sale or assignment)'' after 
                      ``rehabilitating a loan''; and
                    (B) in subsection (b), in the first sentence, by 
                inserting ``or assigned to the Secretary'' after ``sold 
                to an eligible lender''.
            (2) <<NOTE: 20 USC 1078-6. Applicability.>>  Effective 
        date.--The amendments made by paragraph (1) shall be effective 
        on the date of enactment of this Act, and shall apply to any 
        loan on which monthly payments described in section 
        428F(a)(1)(A) were paid before, on, or after such date of 
        enactment.

    (e) Repayment in Full for Death and Disability.--
            (1) In general.--Section 437(a)(1) (20 U.S.C. 1087(a)(1)), 
        as amended by section 437 of the Higher Education Opportunity 
        Act (Public Law 110-315), is amended--

[[Page 123 STAT. 1943]]

                    (A) in the matter preceding subparagraph (A), by 
                striking ``Secretary),, or if'' and inserting 
                ``Secretary), or if''; and
                    (B) in subparagraph (B), by inserting ``the 
                reinstatement and resumption to be'' after 
                ``determines''.
            (2) <<NOTE: 20 USC 1087 note.>>  Effective date.--The 
        amendments made by paragraph (1) shall be effective as if 
        enacted as part of the amendments in section 437(a) of the 
        Higher Education Opportunity Act (Public Law 110-315), and shall 
        take effect on July 1, 2010.

    (f) Other Amendments.--Part B of title IV (20 U.S.C. 1071 et seq.) 
is further amended--
            (1) in section 428 (20 U.S.C. 1078)--
                    (A) in subsection (a)(2)(A)(i)(II), by striking 
                ``and'' after the semicolon at the end;
                    (B) in subsection (b)--
                          (i) in the matter following subclause (II) of 
                      paragraph (1)(M)(i), by inserting ``section'' 
                      before ``428B'';
                          (ii) in paragraph (3)(A)(i), by striking ``any 
                      institution of higher education or the employees 
                      of an institution of higher education'' and 
                      inserting ``any institution of higher education, 
                      any employee of an institution of higher 
                      education, or any individual or entity'';
                          (iii) in paragraph (4), by striking ``For the 
                      purpose of paragraph (1)(M)(i)(III) of this 
                      subsection,'' and inserting ``With respect to the 
                      graduate fellowship program referred to in 
                      paragraph (1)(M)(i)(II),''; and
                          (iv) in paragraph (7)--
                                    (I) in subparagraph (B), by striking 
                                ``clause (i) or (ii) of''; and
                                    (II) in subparagraph (D), by 
                                striking ``subparagraph (A)(i)'' and 
                                inserting ``subparagraph (A)''; and
                    (C) in subsection (c)(9)(K), by striking ``3 
                months'' and inserting ``6 months'';
            (2) in section 428B(e) (20 U.S.C. 1078-2(e))--
                    (A) in paragraph (3)(B), by striking ``subsection 
                (c)(5)(B)'' and inserting ``subsection (d)(5)(B)''; and
                    (B) by repealing paragraph (5);
            (3) in section 428C (20 U.S.C. 1078-3)--
                    (A) in subsection (a)(4)(E), by striking ``subpart 
                II of part B'' and inserting ``part E'';
                    (B) in the matter preceding clause (i) of subsection 
                (c)(2)(A)--
                          (i) by striking ``subsection (b)(2)(F)'' and 
                      inserting ``subsection (b)(2)''; and
                          (ii) by inserting a comma after ``graduated'';
                    (C) in subsection (d)(3)(D), by striking ``loan 
                insurance fund'' and inserting ``loan insurance 
                account''; and
                    (D) in subsection (f)(3), by striking ``subsection 
                (a)'' and inserting ``this subsection'';
            (4) in section 428G(c) (20 U.S.C. 1078-7(c))--
                    (A) in paragraph (1), by striking ``section 
                428(a)(2)(A)(i)(III)'' and inserting ``section 
                428(a)(2)(A)(i)(II)''; and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) notwithstanding subsection (a)(2), may, with the 
        permission of the borrower, be disbursed by the lender on

[[Page 123 STAT. 1944]]

        a weekly or monthly basis, provided that the proceeds of the 
        loan are disbursed by the lender in substantially equal weekly 
        or monthly installments, as the case may be, over the period of 
        enrollment for which the loan is made.'';
            (5) in section 428H (20 U.S.C. 1078-8)--
                    (A) in subsection (d), by amending the text of the 
                header of paragraph (2) to read as follows: ``Limits for 
                graduate, professional, and independent 
                postbaccalaureate students''; and
                    (B) in subsection (e), by amending paragraph (6) to 
                read as follows:
            ``(6) Repayment period.--For purposes of calculating the 
        repayment period under section 428(b)(9), such period shall 
        commence at the time the first payment of principal is due from 
        the borrower.'';
            (6) in section 428J (20 U.S.C. 1078-10)--
                    (A) in subsection (c)(1), by adding at the end the 
                following: ``No borrower may receive a reduction of loan 
                obligations under both this section and section 460.''; 
                and
                    (B) in subsection (g)(2)--
                          (i) in subparagraph (B), by inserting ``or'' 
                      after the semicolon at the end;
                          (ii) by striking subparagraph (C);
                          (iii) by redesignating subparagraph (D) as 
                      subparagraph (C); and
                          (iv) in subparagraph (C), as redesignated by 
                      clause (iii), by striking ``12571'' and inserting 
                      ``12601'';
            (7) in section 428K(g)(9)(B) (20 U.S.C. 1078-11(g)(9)(B)), 
        by striking ``under subsection (ll)(3) of such section (42 
        U.S.C. 1395x(ll)(3))'' and inserting ``under subsection (ll)(4) 
        of such section (42 U.S.C. 1395x(ll)(4))'';
            (8) in section 430A(f) (20 U.S.C. 1080a(f))--
                    (A) by striking ``and (6)'' and inserting ``and 
                (5)''; and
                    (B) by striking ``(a)(6)'' and inserting ``(a)(5)'';
            (9) in section 432 (20 U.S.C. 1082)--
                    (A) in subsection (b), by striking ``section 1078 of 
                this title'' and inserting ``section 428''; and
                    (B) in subsection (m)(1)(B)--
                          (i) in clause (i), by inserting ``and'' after 
                      the semicolon at the end; and
                          (ii) in clause (ii), by striking ``; and'' and 
                      inserting a period;
            (10) in section 435 (20 U.S.C. 1085)--
                    (A) in subsection (a)(2)(C)(ii), by striking ``a 
                tribally controlled community college within the meaning 
                of section 2(a)(4) of the Tribally Controlled Community 
                College Assistance Act of 1978'' and inserting ``a 
                tribally controlled college or university, as defined in 
                section 2(a)(4) of the Tribally Controlled Colleges and 
                Universities Assistance Act of 1978'';
                    (B) in subsection (d)--
                          (i) in paragraph (1)--
                                    (I) in subparagraph (A)(ii)(III), by 
                                striking ``section 501(1) of such Code'' 
                                and inserting ``section 501(a) of such 
                                Code''; and

[[Page 123 STAT. 1945]]

                                    (II) in subparagraph (G), by 
                                striking ``sections 428A(d), 428B(d), 
                                and 428C,'' and inserting ``sections 
                                428B(d) and 428C,'';
                          (ii) in paragraph (2)(A)(vi), by striking 
                      ``section 435(m)'' and inserting ``subsection 
                      (m)'';
                          (iii) in paragraph (3), by striking ``section 
                      435(m)'' and inserting ``subsection (m)''; and
                          (iv) in paragraph (5)(A), by striking ``to any 
                      institution of higher education or any employee of 
                      an institution of higher education in order to 
                      secure applicants for loans under this part'' and 
                      inserting ``to any institution of higher 
                      education, any employee of an institution of 
                      higher education, or any individual or entity in 
                      order to secure applicants for loans under this 
                      part'';
                    (C) in subsection (o)(1)(A)(ii), by striking 
                ``Service'' and inserting ``Services''; and
                    (D) in subsection (p)(1), by striking ``section 
                771'' and inserting ``section 781''; and
            (11) in section 438(b)(2) (20 U.S.C. 1087-1(b)(2))--
                    (A) in the second sentence of subparagraph (A), by 
                striking ``427A(f)'' and inserting ``427A(i)'';
                    (B) in the first sentence of subparagraph (B)(i), by 
                striking ``1954'' and inserting ``1986''; and
                    (C) in the second sentence of subparagraph (F), by 
                striking ``427A(f)'' and inserting ``427A(i)''.
SEC. 403. FEDERAL WORK-STUDY PROGRAMS.

    Section 443 (42 U.S.C. 2753) is amended--
            (1) in subsection (b)(2), by striking ``section 443'' and 
        inserting ``this section'';
            (2) in subsection (d)(1), by striking ``subsection 
        (b)(2)(B)'' and inserting ``subsection (b)(2)(A)''; and
            (3) in subsection (e)(1), in the matter preceding 
        subparagraph (A), by striking ``in accordance with such 
        subsection''.
SEC. 404. FEDERAL DIRECT LOAN PROGRAM.

    (a) Temporary Authority to Purchase Loans.--Section 459A (20 U.S.C. 
1087i-1) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), in the matter preceding 
                subparagraph (A), by striking ``purchase of loans under 
                this section'' and inserting ``purchase of loans under 
                paragraph (1)''; and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Temporary authority to purchase rehabilitated loans.--
                    ``(A) Authority.--In addition <<NOTE: Time 
                period.>>  to the authority described in paragraph (1), 
                the Secretary, in consultation with the Secretary of the 
                Treasury, is authorized to purchase, or enter into 
                forward commitments to purchase, from any eligible 
                lender (as defined in section 435(d)(1)), loans that 
                such lender purchased under section 428F on or after 
                October 1, 2003, and before July 1, 2010, and that are 
                not in default, on such terms as the Secretary, the 
                Secretary of the Treasury, and the Director of the 
                Office of Management and Budget jointly determine are in 
                the best interest of the United States, except that any

[[Page 123 STAT. 1946]]

                purchase under this paragraph shall not result in any 
                net cost to the Federal Government (including the cost 
                of servicing the loans purchased), as determined jointly 
                by the Secretary, the Secretary of the Treasury, and the 
                Director of the Office of Management and Budget.
                    ``(B) Federal register notice.--The Secretary, the 
                Secretary of the Treasury, and the Director of the 
                Office of Management and Budget shall jointly publish a 
                notice in the Federal Register prior to any purchase of 
                loans under this paragraph that--
                          ``(i) establishes the terms and conditions 
                      governing the purchases authorized by this 
                      paragraph;
                          ``(ii) includes an outline of the methodology 
                      and factors that the Secretary, the Secretary of 
                      the Treasury, and the Director of the Office of 
                      Management and Budget will jointly consider in 
                      evaluating the price at which to purchase loans 
                      rehabilitated pursuant to section 428F(a); and
                          ``(iii) describes how the use of such 
                      methodology and consideration of such factors used 
                      to determine purchase price will ensure that loan 
                      purchases do not result in any net cost to the 
                      Federal Government (including the cost of 
                      servicing the loans purchased).''; and
            (2) by amending subsection (b) to read as follows:

    ``(b) Proceeds.--The Secretary shall require, as a condition of any 
purchase under subsection (a), that the funds paid by the Secretary to 
any eligible lender under this section be used--
            ``(1) to ensure continued participation of such lender in 
        the Federal student loan programs authorized under part B of 
        this title; and
            ``(2)(A) in the case of loans purchased pursuant to 
        subsection (a)(1), to originate new Federal loans to students, 
        as authorized under part B of this title; or
            ``(B) in the case of loans purchased pursuant to subsection 
        (a)(3), to originate such new Federal loans to students, or to 
        purchase loans in accordance with section 428F(a).''.

    (b) Other Amendments.--Part D of title IV (20 U.S.C. 1087a et seq.) 
is amended--
            (1) by repealing paragraph (3) of section 453(c) (20 U.S.C. 
        1087c(c));
            (2) in section 455 (20 U.S.C. 1087e)--
                    (A) in subsection (d)(1)(C), by striking 
                ``428(b)(9)(A)(v)'' and inserting ``428(b)(9)(A)(iv)'';
                    (B) in subsection (h), by striking ``(except as 
                authorized under section 457(a)(1))''; and
                    (C) in subsection (k)(1)(B), by striking ``, or in a 
                notice under section 457(a)(1),'';
            (3) by repealing section 457 (20 U.S.C. 1087g); and
            (4) in section 460 (20 U.S.C. 1087j)--
                    (A) in subsection (c)(1), by adding at the end the 
                following: ``No borrower may receive a reduction of loan 
                obligations under both this section and section 428J.''; 
                and
                    (B) in subsection (g)(2)--
                          (i) by striking subparagraph (A);

[[Page 123 STAT. 1947]]

                          (ii) by redesignating subparagraphs (B) 
                      through (D) as subparagraphs (A) through (C), 
                      respectively; and
                          (iii) in subparagraph (C), as redesignated by 
                      clause (ii), by striking ``12571'' and inserting 
                      ``12601''.
SEC. 405. FEDERAL PERKINS LOANS.

    Part E of title IV (20 U.S.C. 1087aa et seq.) is amended--
            (1) in section 462(a)(1) (20 U.S.C. 1087bb(a)(1)), by 
        striking subparagraph (A) and inserting the following:
            ``(A) 100 percent of the amount received under subsections 
        (a) and (b) of this section for fiscal year 1999 (as such 
        subsections were in effect with respect to allocations for such 
        fiscal year), multiplied by'';
            (2) in section 463(c) (20 U.S.C. 1087cc(c))--
                    (A) in paragraph (2)--
                          (i) by moving the margins of subparagraph (A) 
                      2 ems to the left; and
                          (ii) by striking subparagraph (B) and 
                      inserting the following:
            ``(B) information concerning the repayment and collection of 
        any such loan, including information concerning the status of 
        such loan; and''; and
                    (B) in paragraph (3)--
                          (i) by striking ``and (6)'' and inserting 
                      ``and (5)''; and
                          (ii) by striking ``(a)(6)'' and inserting 
                      ``(a)(5)'';
            (3) in the first sentence of the matter preceding paragraph 
        (1) of section 463A(a) (20 U.S.C. 1087cc-1(a)), by striking ``, 
        in order to carry out the provisions of section 463(a)(8),'';
            (4) in section 464 (20 U.S.C. 1087dd)--
                    (A) in subsection (c)--
                          (i) in paragraph (1)(D)--
                                    (I) by striking ``(I)'' and 
                                inserting ``(i)''; and
                                    (II) by striking ``(II)'' and 
                                inserting ``(ii)''; and
                          (ii) in paragraph (2)(A)(iii)--
                                    (I) by aligning the margin of the 
                                matter preceding subclause (I) with the 
                                margins of clause (ii);
                                    (II) by aligning the margins of 
                                subclauses (I) and (II) with the margins 
                                of clause (i)(I); and
                                    (III) by aligning the margins of the 
                                matter following subclause (II) with the 
                                margins of the matter following 
                                subclause (II) of clause (i); and
                    (B) in subsection (g)(5), by striking ``credit 
                bureaus'' and inserting ``consumer reporting agencies'';
            (5) in section 465(a)(6) (20 U.S.C. 1087ee(a)(6)), by 
        striking ``12571'' and inserting ``12601'';
            (6) in section 467(b) (20 U.S.C. 1087gg(b)), by striking 
        ``paragraph (5)(A), (5)(B)(i), or (6)'' and inserting 
        ``paragraph (4) or (5)''; and
            (7) in section 469(c) (20 U.S.C. 1087ii(c)), by striking 
        ``and the term'' and all that follows through the period at the 
        end and inserting ``and the term `early intervention services' 
        has the meaning given the term in section 632 of such Act.''.

[[Page 123 STAT. 1948]]

SEC. 406. NEED ANALYSIS.

    (a) Amendments.--Part F of title IV (20 U.S.C. 1087kk et seq.) is 
amended--
            (1) in section 473 (20 U.S.C. 1087mm)--
                    (A) by striking ``For the purpose of this title, 
                except subpart 2 of part A,'' and inserting ``(a) In 
                General.--For the purpose of this title, other than 
                subpart 2 of part A, and except as provided in 
                subsection (b),''; and
                    (B) by adding at the end the following:

    ``(b) Special Rule.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, the family contribution of each student described in 
        paragraph (2) shall be deemed to be zero for the academic year 
        for which the determination is made.
            ``(2) Applicability.--Paragraph (1) shall apply to any 
        dependent or independent student with respect to determinations 
        of need for academic year 2009-2010 and succeeding academic 
        years--
                    ``(A) who is eligible to receive a Federal Pell 
                Grant for the academic year for which the determination 
                is made;
                    ``(B) whose parent or guardian was a member of the 
                Armed Forces of the United States and died as a result 
                of performing military service in Iraq or Afghanistan 
                after September 11, 2001; and
                    ``(C) who, at the time of the parent or guardian's 
                death, was--
                          ``(i) less than 24 years of age; or
                          ``(ii) enrolled at an institution of higher 
                      education on a part-time or full-time basis.
            ``(3) Information.--Notwithstanding any other provision of 
        law, the Secretary of Veterans Affairs and the Secretary of 
        Defense, as appropriate, shall provide the Secretary of 
        Education with information necessary to determine which students 
        meet the requirements of paragraph (2).'';
            (2) in section 475(c)(5)(B) (20 U.S.C. 1087oo(c)(5)(B)), by 
        inserting ``of 1986'' after ``Code'';
            (3) in section 477(b)(5)(B) (20 U.S.C. 1087qq(b)(5)(B)), by 
        inserting ``of 1986'' after ``Code'';
            (4) in section 479 (20 U.S.C. 1087ss)--
                    (A) in subsection (b) (as amended by section 602 of 
                the College Cost Reduction and Access Act (Public Law 
                110-84))--
                          (i) in paragraph (1)(A)(i), by amending 
                      subclause (III) to read as follows:
                                    ``(III) include at least one parent 
                                who is a dislocated worker; or''; and
                          (ii) in paragraph (1)(B)(i), by amending 
                      subclause (III) to read as follows:
                                    ``(III) is a dislocated worker or 
                                has a spouse who is a dislocated worker; 
                                or''; and
                    (B) in subsection (c) (as amended by such section 
                602)--
                          (i) in paragraph (1)(A), by amending clause 
                      (iii) to read as follows:
                          ``(iii) include at least one parent who is a 
                      dislocated worker; or''; and
                          (ii) in paragraph (2)(A), by amending clause 
                      (iii) to read as follows:

[[Page 123 STAT. 1949]]

                          ``(iii) is a dislocated worker or has a spouse 
                      who is a dislocated worker; or'';
            (5) in section 479C (20 U.S.C. 1087uu-1)--
                    (A) in paragraph (1), by striking ``under'' and all 
                that follows through ``; and'' and inserting ``under 
                Public Law 98-64 (25 U.S.C. 117a et seq.; 97 Stat. 365) 
                (commonly known as the `Per Capita Act') or the Indian 
                Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 
                1401 et seq.); and''; and
                    (B) in paragraph (2)--
                          (i) by striking ``Alaskan'' and inserting 
                      ``Alaska'';
                          (ii) by inserting ``(43 U.S.C. 1601 et seq.)'' 
                      before ``or the''; and
                          (iii) by inserting ``of 1980 (25 U.S.C. 1721 
                      et seq.)'' after ``Maine Indian Claims Settlement 
                      Act'';
            (6) in section 480(a)(2) (20 U.S.C. 1087vv(a)(2)), by 
        striking ``12571'' and inserting ``12511'';
            (7) in section 480(c)(2) (20 U.S.C. 1087vv(c)(2))--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``the following'' and inserting ``benefits 
                under the following provisions of law''; and
                    (B) by striking subparagraphs (A) through (J) and 
                inserting the following:
            ``(A) Chapter 103 of title 10, United States Code (Senior 
        Reserve Officers' Training Corps).
            ``(B) Chapter 106A of title 10, United States Code 
        (Educational Assistance for Persons Enlisting for Active Duty).
            ``(C) Chapter 1606 of title 10, United States Code (Selected 
        Reserve Educational Assistance Program).
            ``(D) Chapter 1607 of title 10, United States Code 
        (Educational Assistance Program for Reserve Component Members 
        Supporting Contingency Operations and Certain Other Operations).
            ``(E) Chapter 30 of title 38, United States Code (All-
        Volunteer Force Educational Assistance Program, also known as 
        the `Montgomery GI Bill--active duty').
            ``(F) Chapter 31 of title 38, United States Code (Training 
        and Rehabilitation for Veterans with Service-Connected 
        Disabilities).
            ``(G) Chapter 32 of title 38, United States Code (Post-
        Vietnam Era Veterans' Educational Assistance Program).
            ``(H) Chapter 33 of title 38, United States Code (Post-9/11 
        Educational Assistance).
            ``(I) Chapter 35 of title 38, United States Code (Survivors' 
        and Dependents' Educational Assistance Program).
            ``(J) Section 903 of the Department of Defense Authorization 
        Act, 1981 (10 U.S.C. 2141 note) (Educational Assistance Pilot 
        Program).
            ``(K) Section 156(b) of the `Joint Resolution making further 
        continuing appropriations and providing for productive 
        employment for the fiscal year 1983, and for other purposes' (42 
        U.S.C. 402 note) (Restored Entitlement Program for Survivors, 
        also known as `Quayle benefits').
            ``(L) The provisions of chapter 3 of title 37, United States 
        Code, related to subsistence allowances for members of the 
        Reserve Officers Training Corps.''; and

[[Page 123 STAT. 1950]]

            (8) in section 480(j)(1) (20 U.S.C. 1087vv(j)(1)), by 
        striking ``12571'' and inserting ``12511''.

    (b) Effective Date.--The amendments <<NOTE: 20 USC 1087mm note.>>  
made by--
            (1) paragraph (1) of subsection (a) shall take effect on 
        July 1, 2009; and
            (2) paragraph (4) of such subsection shall be effective as 
        if enacted as part of the amendments in section 602(a) of the 
        College Cost Reduction and Access Act (Public Law 110-84), and 
        shall take effect on July 1, 2009.

    (c) Higher Education Opportunity Act.--Section 473(f) of the Higher 
Education Opportunity Act (Public Law 110-315) <<NOTE: 20 USC 1087vv 
note.>>  is amended by inserting ``, except that the amendments made in 
subsection (e) shall take effect on July 1, 2009'' before the period at 
the end.
SEC. 407. GENERAL PROVISIONS OF TITLE IV.

    (a) <<NOTE: 20 USC 1090 note.>>  Delayed Implementation of EZ 
FAFSA.--Notwithstanding any other provision of law, the Secretary of 
Education shall be required to carry out the requirements under the 
following provisions of section 483 of the Higher Education Act of 1965 
(20 U.S.C. 1090) only for academic year 2010-2011 and subsequent 
academic years:
            (1) In subsection (a) of such section--
                    (A) subparagraphs (A)(i) and (B) of paragraph (2);
                    (B) in paragraph (3)--
                          (i) the second sentence of subparagraph (A);
                          (ii) clauses (i) and (ii) of subparagraph (B); 
                      and
                          (iii) subparagraph (C);
                    (C) paragraph (4)(A)(iv); and
                    (D) paragraph (5)(E).
            (2) Subsection (h) of such section.

    (b) Other Amendments.--Part G of title IV (20 U.S.C. 1088 et seq.) 
is amended--
            (1) in the matter preceding paragraph (1) of section 481(c) 
        (20 U.S.C. 1088(c)), by striking ``or any State, or private, 
        profit or nonprofit organization'' and inserting ``any State, or 
        any private, for-profit or nonprofit organization,'';
            (2) in section 482(b) (20 U.S.C. 1089(b)), by striking 
        ``413D(e), 442(e), or 462(j)'' and inserting ``413D(d), 442(d), 
        or 462(i)'';
            (3) in section 483 (20 U.S.C. 1090)--
                    (A) in subsection (a)(3)(C), by inserting ``that'' 
                after ``except''; and
                    (B) in subsection (e)(8)(A), by striking 
                ``identify'' and inserting ``determine'';
            (4) in section 484 (20 U.S.C. 1091)--
                    (A) in the matter preceding subparagraph (A) of 
                subsection (a)(4), by striking ``certification,,'' and 
                inserting ``certification,'';
                    (B) in subsection (b)(1)(B)--
                          (i) by striking ``have (A)'' and inserting 
                      ``have (i)''; and
                          (ii) by striking ``and (B)'' and inserting 
                      ``and (ii)'';
                    (C) in subsection (f)(1), by striking ``part B'' and 
                all that follows through ``part E'' in each place that 
                the phrase occurs and inserting ``part B, part D, or 
                part E'';
                    (D) in subsection (h)--

[[Page 123 STAT. 1951]]

                          (i) in paragraph (2), by striking 
                      ``(h)(4)(A)(i)'' and inserting ``(g)(4)(A)(i)''; 
                      and
                          (ii) in paragraph (3), by striking 
                      ``(h)(4)(B)(i)'' and inserting ``(g)(4)(B)(i)''; 
                      and
                    (E) in subsection (n), by striking ``section 1113 of 
                Public Law 97-252'' and inserting ``section 12(f) of the 
                Military Selective Service Act (50 U.S.C. App. 
                462(f))'';
            (5) in section 485 (20 U.S.C. 1092)--
                    (A) in subsection (a)--
                          (i) in paragraph (1)--
                                    (I) the matter preceding 
                                subparagraph (A), by striking ``also 
                                referred to as the Family Educational 
                                Rights and Privacy Act of 1974'' and 
                                inserting ``commonly known as the 
                                `Family Educational Rights and Privacy 
                                Act of 1974' ''; and
                                    (II) in subparagraph (I), by 
                                striking ``handicapped students'' and 
                                inserting ``students with 
                                disabilities'';
                          (ii) in paragraph (4)(B), by inserting 
                      ``during which'' after ``time period''; and
                          (iii) in the matter preceding subclause (I) of 
                      paragraph (7)(B)(iv), by inserting ``education'' 
                      after ``higher'';
                    (B) in subsection (e)(3)(B), by inserting ``during 
                which'' after ``time period'';
                    (C) in subsection (f)--
                          (i) in the matter preceding subparagraph (A) 
                      of paragraph (1), by inserting ``of'' after 
                      ``foreign institution''; and
                          (ii) in paragraphs (3), (4)(A), (5), and 
                      (8)(A), by striking ``under this title'' each 
                      place it appears and inserting ``under this title, 
                      other than a foreign institution of higher 
                      education,'';
                    (D) in subsection (g)(2), by striking ``subparagraph 
                (G)'' and inserting ``paragraph (1)(G)'';
                    (E) in subsection (i)--
                          (i) in paragraph (2), by striking ``eligible 
                      institution participating in any program under 
                      this title'' and inserting ``institution described 
                      in paragraph (1)'';
                          (ii) in paragraph (3), in the matter preceding 
                      subparagraph (A), by striking ``eligible 
                      institution participating in any program under 
                      this title'' and inserting ``institution described 
                      in paragraph (1)''; and
                          (iii) in paragraph (5)(B), by striking ``the 
                      Family Educational Rights and Privacy Act of 
                      1974'' and inserting ``commonly known as the 
                      `Family Educational Rights and Privacy Act of 
                      1974' '';
                    (F) in subsection (k)(2), by inserting ``section'' 
                before ``484(r)(1)''; and
                    (G) in the matter preceding clause (i) of subsection 
                (l)(1)(A), by striking ``subparagraph (B)'' and 
                inserting ``paragraph (2)'';
            (6) in section 485A (20 U.S.C. 1092a)--
                    (A) in subsection (a)--
                          (i) by striking ``or defined in subpart I of 
                      part C of title VII of the Public Health Service 
                      Act'' and inserting ``or an eligible lender as 
                      defined in section

[[Page 123 STAT. 1952]]

                      719 of the Public Health Service Act (42 U.S.C. 
                      292o)''; and
                          (ii) by striking ``under subpart I of part C 
                      of title VII of the Public Health Service Act 
                      (known as Health Education Assistance Loans)'' and 
                      inserting ``under part A of title VII of the 
                      Public Health Service Act (42 U.S.C. 292 et 
                      seq.)'';
                    (B) in subsection (b), by striking ``subpart I of 
                part C of title VII of the Public Health Service Act'' 
                and inserting ``part A of title VII of the Public Health 
                Service Act (42 U.S.C. 292 et seq.)'';
                    (C) in subsection (e)--
                          (i) by striking ``Health Education Assistance 
                      Loan'' and inserting ``loan under part A of title 
                      VII of the Public Health Service Act (42 U.S.C. 
                      292 et seq.)''; and
                          (ii) in paragraph (2), by striking 
                      ``733(e)(3)'' and inserting ``707(e)(3)''; and
                    (D) in subsection (f)--
                          (i) in paragraph (1)--
                                    (I) in the second sentence, by 
                                striking ``subpart I of part C of title 
                                VII of the Public Health Service Act'' 
                                and inserting ``part A of title VII of 
                                the Public Health Service Act (42 U.S.C. 
                                292 et seq.)''; and
                                    (II) in the fourth sentence, by 
                                striking ``728(a)'' and inserting 
                                ``710''; and
                          (ii) in paragraph (2), by striking ``subpart I 
                      of part C of title VII of the Public Health 
                      Service Act'' and inserting ``part A of title VII 
                      of the Public Health Service Act (42 U.S.C. 292 et 
                      seq.)'';
            (7) in section 485B (20 U.S.C. 1092b)--
                    (A) in subsection (a)(5), by striking ``))'' and 
                inserting ``)''; and
                    (B) in subsection (d)(3)(D), by striking ``the 
                Family Educational Rights and Privacy Act of 1974'' and 
                inserting ``commonly known as the `Family Educational 
                Rights and Privacy Act of 1974' '';
            (8) in section 487 (20 U.S.C. 1094)--
                    (A) in subsection (a)(23)(A), by inserting ``of 
                1993'' after ``Registration Act'';
                    (B) in subsection (c)(1)--
                          (i) in subparagraph (A)(i), by striking 
                      ``students receives'' and inserting ``students 
                      receive'';
                          (ii) in subparagraph (F), by striking 
                      ``paragraph (2)(B)'' and inserting ``paragraph 
                      (3)(B)''; and
                          (iii) in subparagraph (H), by striking 
                      ``paragraph (2)(B)'' and inserting ``paragraph 
                      (3)(B)'';
                    (C) in subsection (f)(1), by striking ``496(c)(4)'' 
                and inserting ``496(c)(3)''; and
                    (D) in subsection (g)(1), by striking ``subsection 
                (f)(2)'' and inserting ``subsection (e)(2)'';
            (9) in section 487A(b) (20 U.S.C. 1094a(b))--
                    (A) in paragraph (1)--
                          (i) by striking ``Any activities'' and 
                      inserting ``Any experimental sites''; and
                          (ii) by striking ``June 30, 2009'' and 
                      inserting ``June 30, 2010''; and

[[Page 123 STAT. 1953]]

                    (B) by adding at the end the following:
            ``(4) Determination of success.--For the purposes of 
        paragraph (1), the Secretary shall make a determination of 
        success regarding an institution's participation as an 
        experimental site based on--
                    ``(A) the ability of the experimental site to reduce 
                administrative burdens to the institution, as documented 
                in the Secretary's biennial report under paragraph (2), 
                without creating costs for the taxpayer; and
                    ``(B) whether the experimental site has improved the 
                delivery of services to, or otherwise benefitted, 
                students.'';
            (10) in section 489(a) (20 U.S.C. 1096(a))--
                    (A) in the third sentence, by striking ``has agreed 
                to assign under section 463(a)(6)(B)'' and inserting 
                ``has referred under section 463(a)(4)(B)''; and
                    (B) in the fourth sentence, by striking ``484(h)'' 
                and inserting ``484(g)'';
            (11) in section 491(l)(2)(A) (20 U.S.C. 1098(l)(2)(A)), by 
        inserting ``the'' after ``enactment of''; and
            (12) in section 492(a) (20 U.S.C. 1098a(a))--
                    (A) in paragraph (1), by striking ``regulations'' 
                and all that follows through ``The'' and inserting 
                ``regulations for this title. The''; and
                    (B) in paragraph (2), by striking ``Issues'' and all 
                that follows through ``provide'' and inserting 
                ``Issues.--The Secretary shall provide''.
SEC. 408. PROGRAM INTEGRITY.

    Part H of title IV (20 U.S.C. 1099a et seq.) is amended--
            (1) in section 496(a)(6)(G) (20 U.S.C. 1099b(a)(6)(G)), by 
        striking the period at the end and inserting a semicolon; and
            (2) in section 498(c)(2) (20 U.S.C. 1099c(c)(2)), by 
        striking ``for profit'' and inserting ``for-profit''.
SEC. 409. <<NOTE: 20 USC 1089 note.>>  WAIVER OF MASTER CALENDAR 
                        AND NEGOTIATED RULEMAKING REQUIREMENTS.

    Sections 482 and 492 of the Higher Education Act of 1965 (20 U.S.C. 
1089, 1098a) shall not apply to the amendments made by this title, or to 
any regulations promulgated under those amendments.

                    TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. DEVELOPING INSTITUTIONS.

    Section 502(b)(2) (20 U.S.C. 1101a(b)(2)) is amended by striking 
``which determination'' and inserting ``which the determination''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

SEC. 601. INTERNATIONAL EDUCATION PROGRAMS.

    (a) Higher Education Act of 1965.--Title VI (20 U.S.C. 1121 et seq.) 
is amended--
            (1) in section 604(a) (20 U.S.C. 1124(a))--

[[Page 123 STAT. 1954]]

                    (A) in the matter preceding subparagraph (A) of 
                paragraph (2), by inserting ``the'' before ``Federal''; 
                and
                    (B) in paragraph (7)(D), by striking ``institution, 
                combination'' and inserting ``applicant, consortium,''; 
                and
            (2) in section 622(a) (20 U.S.C. 1131-1(a)), by inserting a 
        period after ``title''.

    (b) Higher Education Opportunity Act.--The matter preceding 
paragraph (1) of section 621 of the Higher Education Opportunity Act 
(Public Law 110-315) <<NOTE: 20 USC 1132.>>  is amended by striking 
``Section 631 (20 U.S.C. 1132)'' and inserting ``Section 631(a) (20 
U.S.C. 1132(a))''.

            TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT

SEC. 701. GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS.

    Title VII (20 U.S.C. 1133 et seq.) is amended--
            (1) in the matter preceding paragraph (1) of section 721(d) 
        (20 U.S.C. 1136(d)), by striking ``services through'' and all 
        that follows through ``resource centers'' and inserting 
        ``services through pre-college programs, undergraduate prelaw 
        information resource centers'';
            (2) in section 723(b)(1)(P) (20 U.S.C. 1136a(b)(1)(P)), by 
        striking ``Sate'' and inserting ``State'';
            (3) in section 744(c)(6)(C) (20 U.S.C. 1138c(c)(6)(C)), by 
        inserting ``of the National Academies'' after ``Institute of 
        Medicine'';
            (4) in section 760 (20 U.S.C. 1140), by striking paragraph 
        (1) and inserting the following:
            ``(1) Comprehensive transition and postsecondary program for 
        students with intellectual <<NOTE: Definition.>>  
        disabilities.--The term `comprehensive transition and 
        postsecondary program for students with intellectual 
        disabilities' means a degree, certificate, or nondegree program 
        that meets each of the following:
                    ``(A) Is offered by an institution of higher 
                education.
                    ``(B) Is designed to support students with 
                intellectual disabilities who are seeking to continue 
                academic, career and technical, and independent living 
                instruction at an institution of higher education in 
                order to prepare for gainful employment.
                    ``(C) Includes an advising and curriculum structure.
                    ``(D) Requires students with intellectual 
                disabilities to participate on not less than a half-time 
                basis as determined by the institution, with such 
                participation focusing on academic components, and 
                occurring through 1 or more of the following activities:
                          ``(i) Regular enrollment in credit-bearing 
                      courses with nondisabled students offered by the 
                      institution.
                          ``(ii) Auditing or participating in courses 
                      with nondisabled students offered by the 
                      institution for which the student does not receive 
                      regular academic credit.
                          ``(iii) Enrollment in noncredit-bearing, 
                      nondegree courses with nondisabled students.
                          ``(iv) Participation in internships or work-
                      based training in settings with nondisabled 
                      individuals.

[[Page 123 STAT. 1955]]

                    ``(E) Requires students with intellectual 
                disabilities to be socially and academically integrated 
                with non-disabled students to the maximum extent 
                possible.'';
            (5) in section 772 (20 U.S.C. 1140l)--
                    (A) in subsection (a)(2)(A), by striking ``with in'' 
                and inserting ``with''; and
                    (B) in the matter preceding subclause (I) of 
                subsection (b)(1)(C)(ii), by striking ``subparagraph 
                (C)'' and inserting ``clause (i)'';
            (6) in section 781 (20 U.S.C. 1141)--
                    (A) in subsection (c)(1), by striking ``Service'' 
                each place the term appears and inserting ``Services'';
                    (B) in the matter preceding paragraph (1) of 
                subsection (e)--
                          (i) by striking ``(as defined'' and all that 
                      follows through ``this Act)'' and inserting ``(as 
                      described in section 435(p))''; and
                          (ii) by striking ``435(j)'' and inserting 
                      ``428(b)'';
                    (C) in subsection (g)(2), by striking ``Service'' 
                and inserting ``Services''; and
                    (D) in subsection (i)--
                          (i) in paragraph (1)(D), by striking 
                      ``consortia'' and inserting ``consortium''; and
                          (ii) in paragraph (2)--
                                    (I) in the paragraph heading, by 
                                striking ``consortia'' and inserting 
                                ``consortium''; and
                                    (II) by striking ``consortia'' each 
                                place the term appears and inserting 
                                ``consortium''.

                     TITLE VIII--ADDITIONAL PROGRAMS

SEC. 801. ADDITIONAL PROGRAMS.

    Title VIII (20 U.S.C. 1161a et seq.) is amended--
            (1) in section 802(d)(2)(D) (20 U.S.C. 1161b(d)(2)(D)), by 
        striking ``regulation'' and inserting ``regulations'';
            (2) in section 804(d) (20 U.S.C. 1161d(d))--
                    (A) in the heading, by striking ``Definition'' and 
                inserting ``Definitions''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Public health service act.--The terms `accredited' and 
        `school of nursing' have the meanings given those terms in 
        section 801 of the Public Health Service Act (42 U.S.C. 296).'';
            (3) in section 808(a)(1) (20 U.S.C. 1161h(a)(1)), by 
        striking ``the Family Education Rights and Privacy Act of 1974'' 
        and inserting ``section 444 of the General Education Provisions 
        Act (commonly known as the `Family Educational Rights and 
        Privacy Act of 1974')'';
            (4) in section 819(b)(3) (20 U.S.C. 1161j(b)(3)), by 
        inserting a period after ``101(a)'';
            (5) in section 820 (20 U.S.C. 1161k)--
                    (A) in subsection (d)(5), by inserting ``the'' 
                before ``grant'';
                    (B) in subsection (f)(2), by striking ``subpart'' 
                each place the term appears and inserting ``section''; 
                and

[[Page 123 STAT. 1956]]

                    (C) in subsection (h), by striking ``use'' and 
                inserting ``used'';
            (6) in section 821 (20 U.S.C. 1161l)--
                    (A) in subsection (a)(1), by striking ``subsection 
                (g)'' and inserting ``subsection (f)''; and
                    (B) in subsection (c)(1)(B), by striking ``within'' 
                and inserting ``in'';
            (7) in section 824(f)(3) (20 U.S.C. 1161l-3(f)(3))--
                    (A) in subparagraph (A), by inserting ``a'' after 
                ``submitting''; and
                    (B) in subparagraph (C), by striking ``pursing'' and 
                inserting ``pursuing'';
            (8) in section 825(a) (20 U.S.C. 1161l-4(a)), by striking 
        ``the Family Educational Rights and Privacy Act of 1974'' and 
        inserting ``commonly known as the `Family Educational Rights and 
        Privacy Act of 1974' '';
            (9) in section 826(3) (20 U.S.C. 1161l-5(3)), by striking 
        ``the Family Educational Rights and Privacy Act of 1974'' and 
        inserting ``commonly known as the `Family Educational Rights and 
        Privacy Act of 1974' '';
            (10) in section 830(a)(1)(B) (20 U.S.C. 1161m(a)(1)(B)), by 
        striking ``of for'' and inserting ``of'';
            (11) in section 833(e)(1) (20 U.S.C. 1161n-2(e)(1))--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``because of'' and inserting ``based on''; and
                    (B) in subparagraph (D), by striking ``purposes of 
                this section'' and inserting ``purpose of this part'';
            (12) in section 841(c)(1) (20 U.S.C. 1161o(c)(1)), by 
        striking ``486A(d)'' and inserting ``486A(b)(1)'';
            (13) in section 851(j) (20 U.S.C. 1161p(j)), by inserting 
        ``to be appropriated'' after ``authorized''; and
            (14) in section 894(b)(2) (20 U.S.C. 1161y(b)(2)), by 
        striking ``the Family Educational Rights and Privacy Act of 
        1974'' and inserting ``commonly known as the `Family Educational 
        Rights and Privacy Act of 1974' ''.
SEC. 802. AMENDMENTS TO OTHER HIGHER EDUCATION ACTS.

    (a) Higher Education Amendments of 1998.--
            (1) Incarcerated individuals.--Section 821(h) of the Higher 
        Education Amendments of 1998 (20 U.S.C. 1151(h)) is amended to 
        read as follows:

    ``(h) Allocation of Funds.--
            ``(1) Fiscal year 2009.--From the funds appropriated 
        pursuant to subsection (i) for fiscal year 2009, the Secretary 
        shall allot to each State an amount that bears the same 
        relationship to such funds as the total number of incarcerated 
        individuals described in paragraphs (1) and (2) of subsection 
        (e) in the State bears to the total number of such individuals 
        in all States.
            ``(2) Future fiscal years.--From the funds appropriated 
        pursuant to subsection (i) for each fiscal year after fiscal 
        year 2009, the Secretary shall allot to each State an amount 
        that bears the same relationship to such funds as the total 
        number of students eligible under subsection (e) in such State 
        bears to the total number of such students in all States.''.

[[Page 123 STAT. 1957]]

            (2) Underground railroad.--Section 841(c) of the Higher 
        Education Amendments of 1998 (20 U.S.C. 1153(c)) is amended by 
        inserting ``this section'' after ``to carry out''.

    (b) Education of the Deaf Act of 1986.--Section 203(b)(2) of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(2)) is amended by 
striking ``and subsections (b) and (c) of section 209.'' and inserting 
``and subsections (a), (b), and (c) of section 209.''.

    Approved July 1, 2009.

LEGISLATIVE HISTORY--H.R. 1777:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 155 (2009):
            Mar. 30, considered and passed House.
            June 23, considered and passed Senate, amended. House 
                concurred in Senate amendment.

                                  <all>
```