PUBLIC LAW 111–39—JULY 1, 2009 

HIGHER EDUCATION TECHNICAL 

CORRECTIONS 


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123 STAT. 1934 PUBLIC LAW 111–39—JULY 1, 2009 

Public Law 111–39 

111th Congress 

An Act 

To make technical corrections to the Higher Education Act of 1965, and for other 

purposes. 

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 

July 1, 2009 

[H.R. 1777] 


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PUBLIC LAW 111–39—JULY 1, 2009 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. 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 EDU- CATION.—Section 101(b) of the Higher Education Opportunity 

Act (Public Law 110–315) 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) of the Higher 

Education Opportunity Act (Public Law 110–315) 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; 

20 USC 1002 

note. 

Effective date. 

20 USC 1001 

note. 

20 USC 1001 

note. 


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123 STAT. 1936 PUBLIC LAW 111–39—JULY 1, 2009 

‘‘(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-BACCA- LAUREATE’’ 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— 


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PUBLIC LAW 111–39—JULY 1, 2009 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— 


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123 STAT. 1938 PUBLIC LAW 111–39—JULY 1, 2009 

‘‘(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 


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PUBLIC LAW 111–39—JULY 1, 2009 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. 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 

20 USC 1070h 

note. 


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123 STAT. 1940 PUBLIC LAW 111–39—JULY 1, 2009 

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) 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) is 

amended by adding at the end the following new subsection: 

‘‘(i) EFFECTIVE DATE; TRANSITION.— ‘‘(1) 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 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 

Applicability. 

20 USC 1078 

note. 

Applicability. 

20 USC 

1070a–25 note. 

20 USC 1070h 

note. 


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PUBLIC LAW 111–39—JULY 1, 2009 123 STAT. 1941 

Opportunity Act (Public Law 110–315), is amended by striking 

‘‘section 493C’’ and inserting ‘‘section 493C,’’. 

(2) 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) 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 

Deadline. 

20 USC 1078–3 

note. 


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123 STAT. 1942 PUBLIC LAW 111–39—JULY 1, 2009 

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) 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— 

20 USC 1078–6. 

Applicability. 


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(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) 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 

20 USC 1087 

note. 


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123 STAT. 1944 PUBLIC LAW 111–39—JULY 1, 2009 

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 


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PUBLIC LAW 111–39—JULY 1, 2009 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 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 

Time period. 


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123 STAT. 1946 PUBLIC LAW 111–39—JULY 1, 2009 

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); 


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PUBLIC LAW 111–39—JULY 1, 2009 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.’’. 


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123 STAT. 1948 PUBLIC LAW 111–39—JULY 1, 2009 

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: 


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PUBLIC LAW 111–39—JULY 1, 2009 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 (PostVietnam Era Veterans’ Educational Assistance Program). 

‘‘(H) Chapter 33 of title 38, United States Code (Post9/11 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 


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123 STAT. 1950 PUBLIC LAW 111–39—JULY 1, 2009 

(8) in section 480(j)(1) (20 U.S.C. 1087vv(j)(1)), by striking 

‘‘12571’’ and inserting ‘‘12511’’. 

(b) EFFECTIVE DATE.—The amendments 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) 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) 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)— 

20 USC 1090 

note. 

20 USC 1087vv 

note. 

20 USC 1087mm 

note. 


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PUBLIC LAW 111–39—JULY 1, 2009 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 


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123 STAT. 1952 PUBLIC LAW 111–39—JULY 1, 2009 

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 


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PUBLIC LAW 111–39—JULY 1, 2009 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. 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))— 

20 USC 1089 

note. 


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123 STAT. 1954 PUBLIC LAW 111–39—JULY 1, 2009 

(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) 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 PRO- GRAM FOR STUDENTS WITH INTELLECTUAL 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. 

Definition. 

20 USC 1132. 


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PUBLIC LAW 111–39—JULY 1, 2009 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 


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123 STAT. 1956 PUBLIC LAW 111–39—JULY 1, 2009 

(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.’’. 


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PUBLIC LAW 111–39—JULY 1, 2009 123 STAT. 1957 

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. 

Æ 

(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. 


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