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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 507 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 507

         To amend and extend the Higher Education Act of 1965.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 2005

Mr. Boehner (for himself and Mr. McKeon) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL

 
         To amend and extend the Higher Education Act of 1965.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``College Access and 
Opportunity Act of 2005''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Definition of institution of higher education.
        ``Sec. 101. Definition of institution of higher education.
        ``Sec. 102. Institutions outside the United States.
        ``Sec. 123. Restrictions on funds for for-profit schools.
Sec. 102. New borrower definition.
Sec. 103. Student speech and association rights.
Sec. 104. Extension of National Advisory Committee on Institutional 
                            Quality and Integrity.
Sec. 105. Alcohol and drug abuse prevention.
Sec. 106. Prior rights and obligations.
Sec. 107. Consumer information and public accountability in higher 
                            education.
        ``Sec. 131. Consumer information and public accountability in 
                            higher education.
Sec. 108. Performance-based organization.
                     TITLE II--TEACHER PREPARATION

Sec. 201.  Teacher quality enhancement grants.
      ``Part A--Teacher Quality Enhancement Grants for States and 
                              Partnerships

        ``Sec. 201. Purposes; definitions.
        ``Sec. 202. State grants.
        ``Sec. 203. Partnership grants.
        ``Sec. 204. Teacher recruitment grants.
        ``Sec. 205. Administrative provisions.
        ``Sec. 206. Accountability and evaluation.
        ``Sec. 207. Accountability for programs that prepare teachers.
        ``Sec. 208. State functions.
        ``Sec. 209. General provisions.
        ``Sec. 210. Authorization of appropriations.
Sec. 202. Preparing tomorrow's teachers to use technology.
Sec. 203. Centers of excellence.
                    ``Part C--Centers of Excellence

        ``Sec. 231. Purposes; definitions.
        ``Sec. 232. Centers of excellence.
        ``Sec. 233. Authorization of appropriations.
Sec. 204. Transition.
                      TITLE III--INSTITUTIONAL AID

Sec. 301. Title III grants for American Indian Tribally Controlled 
                            Colleges and Universities.
Sec. 302. Alaska Native and Native Hawaiian-serving institutions.
Sec. 303. Grants to part B institutions.
Sec. 304. Technical amendments.
Sec. 305. Title III authorizations.
                      TITLE IV--STUDENT ASSISTANCE

                       Part A--Grants to Students

Sec. 401. Pell Grants.
        ``Sec. 401A. Pell Grants Plus: achievement grants for State 
                            scholars.
Sec. 402. TRIO programs.
Sec. 403. GEARUP.
Sec. 404. Federal Supplemental Educational Opportunity Grants.
Sec. 405. LEAP.
Sec. 406. HEP/CAMP program.
Sec. 407. Byrd Scholarship.
Sec. 408. Child care access.
Sec. 409. Learning anytime anywhere partnerships.
Sec. 410. Technical amendments.
             Part B--Federal Family Education Loan Program

Sec. 421. Reauthorization of Federal Family Education Loan Program.
Sec. 422. Loan limits.
Sec. 423. Interest rates and special allowances.
Sec. 424. Additional loan terms and conditions.
Sec. 425. Consolidation loan changes.
Sec. 426. Unsubsidized Stafford loans.
Sec. 427. Elimination of termination dates from Taxpayer-Teacher 
                            Protection Act of 2004.
Sec. 428. Additional administrative provisions.
                  Part C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.
Sec. 442. Community service.
Sec. 443. Allocation of funds.
Sec. 444. Books and supplies.
Sec. 445. Job location and development.
Sec. 446. Work colleges.
                  Part D--Federal Direct Loan Program

Sec. 451. Reauthorization of the Direct Loan Program.
                  Part E--Federal Perkins Loan Program

Sec. 461. Reauthorization of program.
Sec. 462. Loan terms and conditions.
Sec. 463. Loan cancellation.
Sec. 464. Technical amendments.
                         Part F--Need Analysis

Sec. 471. Simplified needs test improvements.
Sec. 472. Additional need analysis amendments.
  Part G--General Provisions Relating to Student Financial Assistance

Sec. 481. Definition of academic year.
Sec. 482. Distance education.
Sec. 483. Expanding information dissemination regarding eligibility for 
                            Pell Grants.
Sec. 484. Student eligibility.
Sec. 485. Institutional refunds.
Sec. 486. Institutional and financial assistance information for 
                            students.
Sec. 487. College access initiative.
        ``Sec. 485D. College access initiative.
Sec. 488. Distance education demonstration program.
Sec. 489. College affordability demonstration program.
        ``Sec. 486A. College affordability demonstration program.
Sec. 490. Program participation agreements.
Sec. 491. Additional technical and conforming amendments.
                       Part H--Program Integrity

Sec. 495. Accreditation.
                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Definitional changes.
Sec. 502. Assurance of enrollment of needy students.
Sec. 503. Additional amendments.
Sec. 504. Title V authorization.
                     TITLE VI--TITLE VI AMENDMENTS

Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Institute for International Public Policy.
        ``Sec. 621. Program for foreign service professionals.
Sec. 604. Evaluation, outreach, and dissemination.
        ``Sec. 632. Evaluation, outreach, and dissemination.
Sec. 605. Advisory Board.
        ``Sec. 633. International Higher Education Advisory Board.
Sec. 606. Recruiter access to students and student recruiting 
                            information; safety.
        ``Sec. 634. Recruiter access to students and student recruiting 
                            information.
        ``Sec. 635. Student safety.
Sec. 607. National study of foreign language heritage communities.
        ``Sec. 636. National study of foreign language heritage 
                            communities.
                    TITLE VII--TITLE VII AMENDMENTS

Sec. 701. Javits fellowship program.
Sec. 702. Graduate assistance in areas of national need.
Sec. 703. Thurgood marshall legal educational opportunity program.
Sec. 704. Fund for the improvement of postsecondary education.
Sec. 705. Urban community service.
Sec. 706. Demonstration projects to ensure students with disabilities 
                            receive a quality higher education.
                    TITLE VIII--CLERICAL AMENDMENTS

Sec. 801. Clerical amendments.
              TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS

               Part A--Education of the Deaf Act of 1986

Sec. 901. Laurent Clerc National Deaf Education Center.
Sec. 902. Authority.
Sec. 903. Agreement for the National Technical Institute for the Deaf.
Sec. 904. Definitions.
Sec. 905. Audit.
Sec. 906. Reports.
Sec. 907. Liaison for educational programs.
Sec. 908. Federal endowment programs for Gallaudet University and the 
                            National Technical Institute for the Deaf.
Sec. 909. Oversight and effect of agreements.
Sec. 910. Authorization of appropriations.
                   Part B--Additional Education Laws

Sec. 921. Amendment to Higher Education Amendments of 1998.
Sec. 922. Tribally Controlled College or University Assistance Act of 
                            1978.
Sec. 923. Navajo Community College Act.
Sec. 924. Education Amendments of 1992.
Sec. 925. Study of student learning outcomes and public accountability.

SEC. 2. REFERENCES; EFFECTIVE DATE.

    (a) 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 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.).
    (b) Effective Date.--Except as otherwise provided in this Act, the 
amendments made by this Act shall take effect on the date of enactment 
of this Act.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

    (a) Amendment.--Title I is amended by striking sections 101 and 102 
(20 U.S.C. 1001, 1002) and inserting the following:

``SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

    ``(a) Institution of Higher Education.--For purposes of this Act, 
the term `institution of higher education' means an educational 
institution in any State that--
            ``(1) admits as regular students only persons who--
                    ``(A) meet the requirements of section 484(d)(3), 
                or have a certificate of graduation from a school 
                providing secondary education, or the recognized 
                equivalent of such a certificate; or
                    ``(B) are beyond the age of compulsory school 
                attendance in the State in which the institution is 
                located;
            ``(2) is legally authorized within such State to provide a 
        program of education beyond secondary education;
            ``(3)(A) is accredited by a nationally recognized 
        accrediting agency or association; or
            ``(B) if not so accredited, is a public or nonprofit 
        institution that has been granted preaccreditation status by 
        such an agency or association that has been recognized by the 
        Secretary for the granting of preaccreditation status, and the 
        Secretary has determined that there is satisfactory assurance 
        that the institution will meet the accreditation standards of 
        such an agency or association within a reasonable time; and
            ``(4) meets either of the following criteria:
                    ``(A) is a nonprofit, for-profit, or public 
                institution that--
                            ``(i) provides an educational program for 
                        which the institution awards a bachelor's 
                        degree;
                            ``(ii) provides not less than a 2-year 
                        educational program which is acceptable for 
                        full credit towards such a degree; or
                            ``(iii) provides not less than a 1-year 
                        program of training that prepares students for 
                        gainful employment in a recognized occupation; 
                        or
                    ``(B) is a nonprofit, for-profit, or public 
                institution that provides an eligible program (as 
                defined in section 481)--
                            ``(i) for which the institution awards a 
                        certificate; and
                            ``(ii) that prepares students for gainful 
                        employment in a recognized occupation.
    ``(b) Additional Limitations.--
            ``(1) For-profit postsecondary institutions.--
                    ``(A) Duration of accreditation.--A for-profit 
                institution shall not be considered to be an 
                institution of higher education unless such institution 
                is accredited by a nationally recognized accrediting 
                agency or association and such institution has been in 
                existence for at least 2 years.
                    ``(B) Institutional eligibility only for 
                competitive grants.--For the purposes of any program 
                providing grants to institutions for use by the 
                institution (and not for distribution among students), 
                a for-profit institution shall not be considered to be 
                an institution of higher education under this section 
                if such grants are awarded on any basis other than 
                competition on the merits of the grant proposal or 
                application.
            ``(2) Postsecondary vocational institutions.--A nonprofit 
        or public institution that meets the criteria of subsection 
        (a)(4)(B) shall not be considered to be an institution of 
        higher education unless such institution has been in existence 
        for at least 2 years.
            ``(3) Limitations based on management.--An institution 
        shall not be considered to meet the definition of an 
        institution of higher education in this section if--
                    ``(A) the institution, or an affiliate of the 
                institution that has the power, by contract or 
                ownership interest, to direct or cause the direction of 
                the management or policies of the institution, has 
                filed for bankruptcy, except that this paragraph shall 
                not apply to a nonprofit institution, the primary 
                function of which is to provide health care educational 
                services (or an affiliate of such an institution that 
                has the power, by contract or ownership interest, to 
                direct or cause the direction of the institution's 
                management or policies) that filed for bankruptcy under 
                chapter 11 of title 11, United States Code, between 
                July 1, 1998, and December 1, 1998; or
                    ``(B) the institution, the institution's owner, or 
                the institution's chief executive officer has been 
                convicted of, or has pled nolo contendere or guilty to, 
                a crime involving the acquisition, use, or expenditure 
                of Federal funds, or has been judicially determined to 
                have committed a crime involving the acquisition, use, 
                or expenditure involving Federal funds.
            ``(4) Limitation on course of study or enrollment.--An 
        institution shall not be considered to meet the definition of 
        an institution of higher education in subsection (a) if such 
        institution--
                    ``(A) offers more than 50 percent of such 
                institution's courses by correspondence (excluding 
                courses offered by telecommunications as defined in 
                484(l)(4)), unless the institution is an institution 
                that meets the definition in section 3(3)(C) of the 
                Carl D. Perkins Vocational and Technical Education Act 
                of 1998;
                    ``(B) enrolls 50 percent or more of the 
                institution's students in correspondence courses 
                (excluding courses offered by telecommunications as 
                defined in 484(l)(4)), unless the institution is an 
                institution that meets the definition in section 
                3(3)(C) of the Carl D. Perkins Vocational and Technical 
                Education Act of 1998, except that the Secretary, at 
                the request of the institution, may waive the 
                applicability of this subparagraph to the institution 
                for good cause, as determined by the Secretary in the 
                case of an institution of higher education that 
                provides a 2- or 4-year program of instruction (or 
                both) for which the institution awards an associate or 
                baccalaureate degree, respectively;
                    ``(C) has a student enrollment in which more than 
                25 percent of the students are incarcerated, except 
                that the Secretary may waive the limitation contained 
                in this subparagraph for an institution that provides a 
                2- or 4-year program of instruction (or both) for which 
                the institution awards a bachelor's degree, or an 
                associate's degree or a postsecondary certificate, 
                respectively; or
                    ``(D) has a student enrollment in which more than 
                50 percent of the students either do not meet the 
                requirements of section 484(d)(3) or do not have a 
                secondary school diploma or its recognized equivalent, 
                and does not provide a 2- or 4-year program of 
                instruction (or both) for which the institution awards 
                an associate's degree or a bachelor's degree, 
                respectively, except that the Secretary may waive the 
                limitation contained in this subparagraph if an 
                institution demonstrates to the satisfaction of the 
                Secretary that the institution exceeds such limitation 
                because the institution serves, through contracts with 
                Federal, State, or local government agencies, 
                significant numbers of students who do not meet the 
                requirements of section 484(d)(3) or do not have a 
                secondary school diploma or its recognized equivalent.
    ``(c) List of Accrediting Agencies.--For purposes of this section, 
the Secretary shall publish a list of nationally recognized accrediting 
agencies or associations that the Secretary determines, pursuant to 
subpart 2 of part H of title IV, to be reliable authority as to the 
quality of the education or training offered.
    ``(d) Certification.--The Secretary shall certify, for the purposes 
of participation in title IV, an institution's qualification as an 
institution of higher education in accordance with the requirements of 
subpart 3 of part H of title IV.
    ``(e) Loss of Eligibility.--An institution of higher education 
shall not be considered to meet the definition of an institution of 
higher education in this section for the purposes of participation in 
title IV if such institution is removed from eligibility for funds 
under title IV as a result of an action pursuant to part H of title IV.

``SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.

    ``(a) Institutions Outside the United States.--
            ``(1) In general.--An institution outside the United States 
        shall be considered to be an institution of higher education 
        only for purposes of part B of title IV if the institution is 
        comparable to an institution of higher education, as defined in 
        section 101, is legally authorized by the education ministry 
        (or comparable agency) of the country in which the school is 
        located, and has been approved by the Secretary for purposes of 
        that part. The Secretary shall establish criteria by regulation 
        for that approval and that determination of comparability. An 
        institution may not be so approved or determined to be 
        comparable unless such institution is a public or nonprofit 
        institution, except that, subject to paragraph (2)(B), a 
        graduate medical school or veterinary school located outside 
        the United States may be a for-profit institution.
            ``(2) Medical and veterinary school criteria.--In the case 
        of a graduate medical or veterinary school outside the United 
        States, such criteria shall include a requirement that a 
        student attending such school outside the United States is 
        ineligible for loans made, insured, or guaranteed under part B 
        of title IV unless--
                    ``(A) in the case of a graduate medical school 
                located outside the United States--
                            ``(i)(I) at least 60 percent of those 
                        enrolled in, and at least 60 percent of the 
                        graduates of, the graduate medical school 
                        outside the United States were not persons 
                        described in section 484(a)(5) in the year 
                        preceding the year for which a student is 
                        seeking a loan under part B of title IV; and
                            ``(II) at least 60 percent of the 
                        individuals who were students or graduates of 
                        the graduate medical school outside the United 
                        States or Canada (both nationals of the United 
                        States and others) taking the examinations 
                        administered by the Educational Commission for 
                        Foreign Medical Graduates received a passing 
                        score in the year preceding the year for which 
                        a student is seeking a loan under part B of 
                        title IV; or
                            ``(ii) the institution has a clinical 
                        training program that was approved by a State 
                        as of January 1, 1992; or
                    ``(B) in the case of a veterinary school located 
                outside the United States that is not a public or 
                nonprofit institution, the institution's students 
                complete their clinical training at an approved 
                veterinary school located in the United States.
    ``(b) Advisory Panel.--
            ``(1) In general.--For the purpose of qualifying a foreign 
        medical school as an institution of higher education only for 
        purposes of part B of title IV, the Secretary shall publish 
        qualifying criteria by regulation and establish an advisory 
        panel of medical experts that shall--
                    ``(A) evaluate the standards of accreditation 
                applied to applicant foreign medical schools; and
                    ``(B) determine the comparability of those 
                standards to standards for accreditation applied to 
                United States medical schools.
            ``(2) Failure to release information.--The failure of an 
        institution outside the United States to provide, release, or 
        authorize release to the Secretary of such information as may 
        be required by subsection (a)(2) shall render such institution 
        ineligible for the purpose of part B of title IV.
    ``(c) Special Rule.--If, pursuant to this section, an institution 
located outside the United States loses eligibility to participate in 
the programs under part B of title IV, then a student enrolled at such 
institution may, notwithstanding such loss of eligibility, continue to 
be eligible to receive a loan under part B of title IV while attending 
such institution for the academic year succeeding the academic year in 
which such loss of eligibility occurred.''.
    (b) Restrictions on Funds for For-Profit Schools.--Part B of title 
I is amended by inserting after section 122 (20 U.S.C. 1011k) the 
following new section:

``SEC. 123. RESTRICTIONS ON FUNDS FOR FOR-PROFIT SCHOOLS.

    ``(a) In General.--Notwithstanding any other provision of this Act 
authorizing the use of funds by an institution of higher education that 
receives funds under this Act, none of the funds made available under 
this Act to a for-profit institution of higher education may be used 
for--
            ``(1) construction, maintenance, renovation, repair, or 
        improvement of classrooms, libraries, laboratories, or other 
        facilities;
            ``(2) establishing, improving, or increasing an endowment 
        fund; or
            ``(3) establishing or improving an institutional 
        development office to strengthen or improve contributions from 
        alumni and the private sector.
    ``(b) Exception.--Subsection (a) shall not apply to funds received 
by the institution from the grant, loan, or work assistance that is 
awarded under title IV to the students attending such institution.''.
    (c) Conforming Amendments.--
            (1) Section 114(a) (20 U.S.C. 1011c(a)) is amended by 
        striking ``(as defined in section 102)''.
            (2) Section 428K(b) (20 U.S.C. 1078-11(b)) is amended by 
        striking paragraph (5).
            (3) Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (4) Subsection (d) of section 484 (20 U.S.C. 1091(d)) is 
        amended by striking the designation and heading of such 
        subsection and inserting the following:
    ``(d) Satisfaction of Secondary Education Standards.--''.
            (5) Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is amended by 
        striking ``102(a)(3)(A), 102(a)(3)(B)'' and inserting 
        ``101(b)(4)(A), 101(b)(4)(B)''.
            (6) Section 487(c)(1)(A)(iii) (20 U.S.C. 
        1094(c)(1)(A)(iii)) is amended by striking ``section 
        102(a)(1)(C)'' and inserting ``section 102''.
            (7) Section 487(d) (20 U.S.C. 1094(d)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (8) Subsections (j) and (k) of section 496 (20 U.S.C. 
        1099b(j), (k)) are each amended by striking ``section 102'' and 
        inserting ``section 101''.
            (9) Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) is amended by 
        striking ``section 102(a)(1)(C)'' and inserting ``section 
        102''.
            (10) Section 498(i) (20 U.S.C. 1099c(i)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (11) Section 498(j)(1) (20 U.S.C. 1099c) is amended by 
        striking ``except that such branch shall not be required to 
        meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C) 
        prior to seeking such certification'' and inserting ``except 
        that such branch shall not be required to be in existence for 
        at least 2 years prior to seeking such certification''.
            (12) Section 498B(b) (20 U.S.C. 1099c-2(b)) is amended by 
        striking ``section 102(a)(1)(C)'' and inserting ``section 
        102''.

SEC. 102. NEW BORROWER DEFINITION.

    Paragraph (7) of section 103 (20 U.S.C. 1003) is amended to read as 
follows:
            ``(7) New borrower.--The term `new borrower' when used with 
        respect to any date for any loan under any provision of--
                    ``(A) part B or part D of title IV means an 
                individual who on that date has no outstanding balance 
                of principal or interest owing on any loan made, 
                insured, or guaranteed under either of those parts; and
                    ``(B) part E of title IV means an individual who on 
                that date has no outstanding balance of principal or 
                interest owing on any loan made under that part.''.

SEC. 103. STUDENT SPEECH AND ASSOCIATION RIGHTS.

    Section 112 (20 U.S.C. 1011a) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Protection of Rights.--It is the sense of Congress that--
            ``(1) no student attending an institution of higher 
        education on a full- or part-time basis should, on the basis of 
        participation in protected speech or protected association, be 
        excluded from participation in, be denied the benefits of, or 
        be subjected to discrimination or official sanction under any 
        education program, activity, or division of the institution 
        directly or indirectly receiving financial assistance under 
        this Act, whether or not such program, activity, or division is 
        sponsored or officially sanctioned by the institution; and
            ``(2) an institution of higher education should ensure that 
        a student attending such institution on a full- or part-time 
        basis is--
                    ``(A) evaluated solely on the basis of their 
                reasoned answers and knowledge of the subjects and 
                disciplines they study and without regard to their 
                political, ideological, or religious beliefs;
                    ``(B) assured that the selection of speakers and 
                allocation of funds for speakers, programs, and other 
                student activities will utilize methods that promote 
                intellectual pluralism and include diverse viewpoints;
                    ``(C) presented diverse approaches and dissenting 
                sources and viewpoints within the instructional 
                setting; and
                    ``(D) not excluded from participation in, denied 
                the benefits of, or subjected to discrimination or 
                official sanction on the basis of their political or 
                ideological beliefs under any education program, 
                activity, or division of the institution directly or 
                indirectly receiving financial assistance under this 
                Act, whether or not such program, activity, or division 
                is sponsored or officially sanctioned by the 
                institution.''; and
            (2) in subsection (b)(1), by inserting after ``higher 
        education'' the following: ``, provided that the imposition of 
        such sanction is done objectively, fairly, and without regard 
        to the student's political, ideological, or religious 
        beliefs''.

SEC. 104. EXTENSION OF NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL 
              QUALITY AND INTEGRITY.

    Section 114(g) (20 U.S.C. 1011c(g)) is amended by striking ``2004'' 
and inserting ``2012''.

SEC. 105. ALCOHOL AND DRUG ABUSE PREVENTION.

    Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding fiscal years'' and inserting 
        ``5 succeeding fiscal years''.

SEC. 106. PRIOR RIGHTS AND OBLIGATIONS.

    Section 121(a) (20 U.S.C. 1011j(a)) is amended by striking ``1999 
and for each of the 4'' each place it appears and inserting ``2006 and 
for each of the 5''.

SEC. 107. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
              EDUCATION.

    Section 131 (20 U.S.C. 1015) is amended to read as follows:

``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
              EDUCATION.

    ``(a) Data Collection.--
            ``(1) Data systems.--The Secretary shall continue to 
        redesign the relevant parts of the postsecondary education data 
        systems to include additional data as required by this section 
        and to continue to improve the usefulness and timeliness of 
        data collected by such systems.
            ``(2) Information from institutions.--The Commissioner of 
        Education Statistics shall collect, for each academic year and 
        in accordance with standard definitions developed by the 
        Commissioner of Education Statistics (including definitions 
        developed under section 131(a)(3)(A) as in effect on the day 
        before the date of enactment of the College Access and 
        Opportunity Act of 2005) from at least all institutions of 
        higher education participating in programs under title IV, and 
        such institutions shall provide, the following data:
                    ``(A) The tuition and fees charged for a full-time 
                undergraduate student.
                    ``(B) The room and board charges for such a 
                student.
                    ``(C) The cost of attendance for a full-time 
                undergraduate student, consistent with the provisions 
                of section 472.
                    ``(D) The average amount of financial assistance 
                received by a full-time undergraduate student, 
                including--
                            ``(i) each type of assistance or benefits 
                        described in 428(a)(2)(C)(ii);
                            ``(ii) fellowships;
                            ``(iii) institutional and other assistance; 
                        and
                            ``(iv) loans under parts B and D.
                    ``(E) The number of students receiving financial 
                assistance described in each clause of subparagraph 
                (D).
                    ``(F) The average net price for students receiving 
                Federal, State, or institutional financial assistance.
                    ``(G) The institutional instructional expenditure 
                per full-time equivalent student.
    ``(b) Data Dissemination.--The Secretary shall make available the 
data collected pursuant to this section, including an institution's 
college affordability index as calculated in accordance with subsection 
(c). Such data shall be made available in a manner that permits the 
review and comparison of data submissions of individual institutions of 
higher education. Such data shall be presented in a form that is easily 
accessible and understandable and allows parents and students to make 
informed decisions based on the prices for typical full-time 
undergraduate students and the institution's rate of cost increase.
    ``(c) College Affordability Index.--
            ``(1) In general.--The Secretary shall, on the basis of the 
        data submitted under subsection (a), calculate a college 
        affordability index for each institution of higher education 
        submitting such data and shall make the index available in 
        accordance with subsection (b) as soon as operationally 
        possible on the Department's college opportunity online Web 
        site.
            ``(2) Calculation of index.--The college affordability 
        index shall be equal to--
                    ``(A) the percentage increase in the tuition and 
                fees charged for a first-time, full-time, full-year 
                undergraduate student between the first of the 3 most 
                recent preceding academic years and the last of those 3 
                academic years; divided by
                    ``(B) the percentage increase in the Consumer Price 
                Index--All Urban Consumers (Current Series) from July 
                of the first of those 3 academic years to July of the 
                last of those 3 academic years.
    ``(d) Outcomes and Actions.--
            ``(1) Response from institution.--Effective on June 30, 
        2009, an institution that has a college affordability index 
        that exceeds 2.0 for any 3-year interval ending on or after 
        that date shall provide a report to the Secretary, in such a 
        form, at such time, and containing such information as the 
        Secretary may require. Such report shall include--
                    ``(A) an explanation of the factors contributing to 
                the increase in the institution's costs and in the 
                tuition and fees charged to students;
                    ``(B) a management plan stating the specific steps 
                the institution is and will be taking to reduce its 
                college affordability index;
                    ``(C) an action plan, including a schedule, by 
                which the institution will reduce increases in or 
                stabilize, such costs and tuition and fees; and
                    ``(D) if determinations of tuition and fee 
                increases are not within the exclusive control of the 
                institution, a description of the agency or 
                instrumentality of State government or other entity 
                that participates in such determinations and the 
                authority exercised by such agency, instrumentality, or 
                entity.
            ``(2) Information to the public.--Upon receipt of the 
        institution's report and management plan under paragraph (1), 
        the Secretary shall make the institution's report required 
        under paragraph (1) available to the public in accordance with 
        subsection (b).
            ``(3) Consequences for 2-year continuation of failure.--If 
        the Secretary determines that the institution has failed to 
        comply with the management plan and action plan submitted by 
        the institution under this subsection following the next 2 
        academic years that begin after the submission of such plans, 
        and has failed to reduce the college affordability index below 
        2.0 for such 2 academic years, the Secretary--
                    ``(A) shall make available to the public a detailed 
                report provided by the institution on all costs and 
                expenditures, and on all tuition and fees charged to 
                students, for such 2 academic years;
                    ``(B) shall place the institution on an 
                affordability alert status and shall make the 
                information regarding the institution's failure 
                available in accordance with subsection (b);
                    ``(C) shall notify the institution's accrediting 
                agency of the institution's failure; and
                    ``(D) may require the institution to submit to a 
                review and audit by the Inspector General of the 
                Department of Education to determine the cause of the 
                institution's failure.
            ``(4) Information to state agencies.--Any institution that 
        reports under paragraph (1)(D) that an agency or 
        instrumentality of State government or other entity 
        participates in the determinations of tuition and fee increases 
        shall, prior to submitting any information to the Secretary 
        under this subsection, submit such information to, and request 
        the comments and input of, such agency, instrumentality, or 
        entity. With respect to any such institution, the Secretary 
        shall provide a copy of any communication by the Secretary with 
        that institution to such agency, instrumentality, or entity.
            ``(5) Exemptions.--
                    ``(A) Relative price exemption.--The Secretary 
                shall, for any 3-year interval for which college 
                affordability indexes are computed under paragraph (1), 
                determine and publish the dollar amount that, for each 
                class of institution described in subparagraph (C) 
                represents the maximum tuition and fees charged for a 
                full-time undergraduate student in the least costly 
                quartile of institutions within each such class during 
                the last year of such 3-year interval. An institution 
                that has a college affordability index computed under 
                paragraph (1) that exceeds 2.0 for any such 3-year 
                interval, but that, on average during such 3-year 
                interval, charges less than such maximum tuition and 
                fees shall not be subject to the actions required by 
                subparagraph (B) or (C) of paragraph (1), or any action 
                under paragraph (3), unless such institution, for a 
                subsequent 3-year interval, charges more than such 
                maximum tuition and fees.
                    ``(B) Dollar increase exemption.--An institution 
                that has a college affordability index computed under 
                paragraph (1) that exceeds 2.0 for any 3-year interval, 
                but that exceeds such 2.0 by a dollar amount that is 
                less than $500, shall not be subject to the actions 
                required by subparagraph (B) or (C) of paragraph (1), 
                or any action under paragraph (3), unless such 
                institution has a college affordability index for a 
                subsequent 3-year interval that exceeds 2.0 by more 
                than such dollar amount.
                    ``(C) Classes of institutions.--For purposes of 
                subparagraph (B), the classes of institutions shall be 
                those sectors used by the Integrated Postsecondary 
                Education Data System, based on whether the institution 
                is public, nonprofit private, or for-profit private, 
                and whether the institution has a 4-year, 2-year, or 
                less than 2-year program of instruction.
    ``(e) Fines.--In addition to actions authorized in section 487(c), 
the Secretary may impose a fine in an amount not to exceed $25,000 on 
an institution of higher education for failing to provide the 
information described in this section in a timely and accurate manner, 
or for failing to otherwise cooperate with the National Center for 
Education Statistics regarding efforts to obtain data on the cost and 
price of higher education under this section and pursuant to the 
program participation agreement entered into under section 487.
    ``(f) GAO Study and Report.--
            ``(1) GAO study.--The Comptroller General shall conduct a 
        study of the policies and procedures implemented by 
        institutions in increasing the affordability of postsecondary 
        education. Such study shall include information with respect 
        to--
                    ``(A) a list of those institutions that--
                            ``(i) have reduced their college 
                        affordability indexes; or
                            ``(ii) are, as determined under subsection 
                        (d)(5)(A), within the least costly quartile of 
                        institutions within each class described in 
                        subsection (d)(5)(C);
                    ``(B) policies implemented to stem the increase in 
                tuition and fees and institutional costs;
                    ``(C) the extent to which room and board costs and 
                prices changed;
                    ``(D) the extent to which other services were 
                altered to affect tuition and fees;
                    ``(E) the extent to which the institution's 
                policies affected student body demographics and time to 
                completion;
                    ``(F) what, if any, operational factors played a 
                role in reducing tuition and fees;
                    ``(G) the extent to which academic quality was 
                affected, and how;
                    ``(H) the extent to which policies and practices 
                reducing costs and prices may be replicated from one 
                institution to another; and
                    ``(I) other information as necessary to determine 
                best practices in increasing the affordability of 
                postsecondary education.
            ``(2) Interim and final reports.--The Comptroller General 
        shall submit an interim and a final report regarding the 
        findings of the study required by paragraph (1) to the 
        appropriate authorizing committees of Congress. The interim 
        report shall be submitted not later than July 31, 2011, and the 
        final report shall be submitted not later than July 31, 2013.
    ``(g) Student Aid Recipient Survey.--
            ``(1) Survey required.--The Secretary shall conduct a 
        survey of student aid recipients under title IV on a regular 
        cycle and State-by-State basis, but not less than once every 4 
        years--
                    ``(A) to identify the population of students 
                receiving Federal student aid;
                    ``(B) to describe the income distribution and other 
                socioeconomic characteristics of federally aided 
                students;
                    ``(C) to describe the combinations of aid from 
                State, Federal, and private sources received by 
                students from all income groups;
                    ``(D) to describe the debt burden of educational 
                loan recipients and their capacity to repay their 
                education debts, and the impact of such debt burden on 
                career choices;
                    ``(E) to describe the role played by the price of 
                postsecondary education in the determination by 
                students of what institution to attend; and
                    ``(F) to describe how the increased costs of 
                textbooks and other instructional materials affects the 
                costs of postsecondary education to students.
            ``(2) Survey design.--The survey shall be representative of 
        full-time and part-time, undergraduate, graduate, and 
        professional and current and former students in all types of 
        institutions, and designed and administered in consultation 
        with the Congress and the postsecondary education community.
            ``(3) Dissemination.--The Secretary shall disseminate the 
        information resulting from the survey in both printed and 
        electronic form.
    ``(h) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.''.

SEC. 108. PERFORMANCE-BASED ORGANIZATION.

    Section 141 (20 U.S.C. 1018) is amended--
            (1) in subsection (a)(2)(B)--
                    (A) by inserting ``unit'' after ``to reduce the''; 
                and
                    (B) by inserting ``and, to the extent practicable, 
                the total costs of administering those programs'' after 
                ``those programs'';
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by striking ``Each year'' 
                and inserting ``Each fiscal year'';
                    (B) in paragraph (1)(B), by inserting ``secondary 
                markets, guaranty agencies,'' after ``lenders,''; and
                    (C) in paragraph (2)(B), by striking ``Chief 
                Financial Officer Act of 1990 and'' and inserting 
                ``Chief Financial Officers Act of 1990,'' and by 
                inserting before the period at the end the following: 
                ``, and other relevant statutes''; and
            (3) in subsection (f)(3)(A), by striking ``paragraph 
        (1)(A)'' and inserting ``paragraph (1)''.

                     TITLE II--TEACHER PREPARATION

SEC. 201. TEACHER QUALITY ENHANCEMENT GRANTS.

    Part A of title II (20 U.S.C. 1021 et seq.) is amended to read as 
follows:

      ``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
                              PARTNERSHIPS

``SEC. 201. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are to--
            ``(1) improve student academic achievement;
            ``(2) improve the quality of the current and future 
        teaching force by improving the preparation of prospective 
        teachers and enhancing professional development activities;
            ``(3) hold institutions of higher education accountable for 
        preparing highly qualified teachers; and
            ``(4) recruit qualified individuals, including minorities 
        and individuals from other occupations, into the teaching 
        force.
    ``(b) Definitions.--In this part:
            ``(1) Arts and sciences.--The term `arts and sciences' 
        means--
                    ``(A) when referring to an organizational unit of 
                an institution of higher education, any academic unit 
                that offers 1 or more academic majors in disciplines or 
                content areas corresponding to the academic subject 
                matter areas in which teachers provide instruction; and
                    ``(B) when referring to a specific academic subject 
                matter area, the disciplines or content areas in which 
                academic majors are offered by the arts and science 
                organizational unit.
            ``(2) Exemplary teacher.--The term `exemplary teacher' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            ``(3) Highly qualified.--The term `highly qualified' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            ``(4) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational 
        agency--
                    ``(A)(i)(I) that serves not fewer than 10,000 
                children from families with incomes below the poverty 
                line; or
                    ``(II) for which not less than 25 percent of the 
                children served by the agency are from families with 
                incomes below the poverty line;
                    ``(ii) that is among those serving the highest 
                number or percentage of children from families with 
                incomes below the poverty line in the State, but this 
                clause applies only in a State that has no local 
                educational agency meeting the requirements of clause 
                (i); or
                    ``(iii) with a total of less than 600 students in 
                average daily attendance at the schools that are served 
                by the agency and all of whose schools are designated 
                with a school locale code of 7, as determined by the 
                Secretary; and
                    ``(B)(i) for which there is a high percentage of 
                teachers not teaching in the academic subjects or grade 
                levels that the teachers were trained to teach; or
                    ``(ii) for which there is a high percentage of 
                teachers with emergency, provisional, or temporary 
                certification or licensing.
            ``(5) Poverty line.--The term `poverty line' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            ``(6) Professional development.--The term `professional 
        development' has the meaning given such term in section 9101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            ``(7) Scientifically based reading research.--The term 
        `scientifically based reading research' has the meaning given 
        such term in section 1208 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6368).
            ``(8) Scientifically based research.--The term 
        `scientifically based research' has the meaning given such term 
        in section 9101 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7801).
            ``(9) Teaching skills.--The term `teaching skills' means 
        skills that--
                    ``(A) are based on scientifically based research;
                    ``(B) enable teachers to effectively convey and 
                explain subject matter content;
                    ``(C) lead to increased student academic 
                achievement; and
                    ``(D) use strategies that--
                            ``(i) are specific to subject matter;
                            ``(ii) include ongoing assessment of 
                        student learning;
                            ``(iii) focus on identification and 
                        tailoring of academic instruction to students's 
                        specific learning needs; and
                            ``(iv) focus on classroom management.

``SEC. 202. STATE GRANTS.

    ``(a) In General.--From amounts made available under section 210(1) 
for a fiscal year, the Secretary is authorized to award grants under 
this section, on a competitive basis, to eligible States to enable the 
eligible States to carry out the activities described in subsection 
(d).
    ``(b) Eligible State.--
            ``(1) Definition.--In this part, the term `eligible State' 
        means--
                    ``(A) the Governor of a State; or
                    ``(B) in the case of a State for which the 
                constitution or law of such State designates another 
                individual, entity, or agency in the State to be 
                responsible for teacher certification and preparation 
                activity, such individual, entity, or agency.
            ``(2) Consultation.--The Governor or the individual, 
        entity, or agency designated under paragraph (1)(B) shall 
        consult with the Governor, State board of education, State 
        educational agency, or State agency for higher education, as 
        appropriate, with respect to the activities assisted under this 
        section.
            ``(3) Construction.--Nothing in this subsection shall be 
        construed to negate or supersede the legal authority under 
        State law of any State agency, State entity, or State public 
        official over programs that are under the jurisdiction of the 
        agency, entity, or official.
    ``(c) Application.--To be eligible to receive a grant under this 
section, an eligible State shall submit an application to the Secretary 
that--
            ``(1) meets the requirement of this section;
            ``(2) demonstrates that the State is in full compliance 
        with sections 207 and 208;
            ``(3) includes a description of how the eligible State 
        intends to use funds provided under this section;
            ``(4) includes measurable objectives for the use of the 
        funds provided under the grant;
            ``(5) demonstrates the State has submitted and is actively 
        implementing a plan that meets the requirements of sections 
        1111(h)(1)(C)(viii) and 1119 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6311(h)(1)(C)(viii) and 6319); 
        and
            ``(6) contains such other information and assurances as the 
        Secretary may require.
    ``(d) Uses of Funds.--An eligible State that receives a grant under 
this section shall use the grant funds to reform teacher preparation 
requirements, to coordinate with State activities under section 2113(c) 
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6613(c)), and to ensure that current and future teachers are highly 
qualified, by carrying out one or more of the following activities:
            ``(1) Reforms.--Ensuring that all teacher preparation 
        programs in the State are preparing teachers who are highly 
        qualified, are able to understand scientifically based research 
        and its applicability, and are able to use advanced technology 
        effectively in the classroom, including use for instructional 
        techniques to improve student academic achievement, by 
        assisting such programs--
                    ``(A) to retrain faculty; and
                    ``(B) to design (or redesign) teacher preparation 
                programs so they--
                            ``(i) are based on rigorous academic 
                        content, scientifically based research 
                        (including scientifically based reading 
                        research), and challenging State student 
                        academic content standards; and
                            ``(ii) promote strong teaching skills.
            ``(2) Certification or licensure requirements.--Reforming 
        teacher certification (including recertification) or licensing 
        requirements to ensure that--
                    ``(A) teachers have the subject matter knowledge 
                and teaching skills in the academic subjects that the 
                teachers teach that are necessary to help students meet 
                challenging State student academic achievement 
                standards; and
                    ``(B) such requirements are aligned with 
                challenging State academic content standards.
            ``(3) Alternatives to traditional teacher preparation and 
        state certification.--Providing prospective teachers with 
        alternative routes to State certification and traditional 
        preparation to become highly qualified teachers through--
                    ``(A) innovative approaches that reduce unnecessary 
                barriers to State certification while producing highly 
                qualified teachers;
                    ``(B) programs that provide support to teachers 
                during their initial years in the profession; and
                    ``(C) alternative routes to State certification of 
                teachers for qualified individuals, including mid-
                career professionals from other occupations, former 
                military personnel, and recent college graduates with 
                records of academic distinction.
            ``(4) Innovative programs.--Planning and implementing 
        innovative programs to enhance the ability of institutions of 
        higher education to prepare highly qualified teachers, such as 
        charter colleges of education or university and local 
        educational agency partnership schools, that--
                    ``(A) permit flexibility in meeting State 
                requirements as long as graduates, during their initial 
                years in the profession, increase student academic 
                achievement;
                    ``(B) provide long-term data gathered from 
                teachers' performance over multiple years in the 
                classroom on the ability to increase student academic 
                achievement;
                    ``(C) ensure high-quality preparation of teachers 
                from underrepresented groups; and
                    ``(D) create performance measures that can be used 
                to document the effectiveness of innovative methods for 
                preparing highly qualified teachers.
            ``(5) Merit pay.--Developing, or assisting local 
        educational agencies in developing--
                    ``(A) merit-based performance systems that reward 
                teachers who increase student academic achievement; and
                    ``(B) strategies that provide differential and 
                bonus pay in high-need local educational agencies to 
                retain--
                            ``(i) principals;
                            ``(ii) highly qualified teachers who teach 
                        in high-need academic subjects, such as 
                        reading, mathematics, and science;
                            ``(iii) highly qualified teachers who teach 
                        in schools identified for school improvement 
                        under section 1116(b) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        6316(b));
                            ``(iv) special education teachers;
                            ``(v) teachers specializing in teaching 
                        limited English proficient children; and
                            ``(vi) highly qualified teachers in urban 
                        and rural schools or districts.
            ``(6) Teacher advancement.--Developing, or assisting local 
        educational agencies in developing, teacher advancement and 
        retention initiatives that promote professional growth and 
        emphasize multiple career paths (such as paths to becoming a 
        highly qualified mentor teacher or exemplary teacher) and pay 
        differentiation.
            ``(7) Teacher removal.--Developing and implementing 
        effective mechanisms to ensure that local educational agencies 
        and schools are able to remove expeditiously incompetent or 
        unqualified teachers consistent with procedures to ensure due 
        process for the teachers.
            ``(8) Technical assistance.--Providing technical assistance 
        to low-performing teacher preparation programs within 
        institutions of higher education identified under section 
        208(a).
            ``(9) Teacher effectiveness.--Developing--
                    ``(A) systems to measure the effectiveness of 
                teacher preparation programs and professional 
                development programs; and
                    ``(B) strategies to document gains in student 
                academic achievement or increases in teacher mastery of 
                the academic subjects the teachers teach as a result of 
                such programs.
            ``(10) Teacher recruitment and retention.--Undertaking 
        activities that--
                    ``(A) develop and implement effective mechanisms to 
                ensure that local educational agencies and schools are 
                able effectively to recruit and retain highly qualified 
                teachers; or
                    ``(B) are described in section 204(d).
            ``(11) Preschool teachers.--Developing strategies--
                    ``(A) to improve the qualifications of preschool 
                teachers, which may include State certification for 
                such teachers; and
                    ``(B) to improve and expand preschool teacher 
                preparation programs.
    ``(e) Evaluation.--
            ``(1) Evaluation system.--An eligible State that receives a 
        grant under this section shall develop and utilize a system to 
        evaluate annually the effectiveness of teacher preparation 
        programs and professional development activities within the 
        State in producing gains in--
                    ``(A) the teacher's annual contribution to 
                improving student academic achievement, as measured by 
                State academic assessments required under section 
                1111(b)(3) of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 6311(b)(3)); and
                    ``(B) teacher mastery of the academic subjects they 
                teach, as measured by pre- and post-participation tests 
                of teacher knowledge, as appropriate.
            ``(2) Use of evaluation system.--Such evaluation system 
        shall be used by the State to evaluate--
                    ``(A) activities carried out using funds provided 
                under this section; and
                    ``(B) the quality of its teacher education 
                programs.
            ``(3) Public reporting.--The State shall make the 
        information described in paragraph (1) widely available through 
        public means, such as posting on the Internet, distribution to 
        the media, and distribution through public agencies.

``SEC. 203. PARTNERSHIP GRANTS.

    ``(a) Grants.--From amounts made available under section 210(2) for 
a fiscal year, the Secretary is authorized to award grants under this 
section, on a competitive basis, to eligible partnerships to enable the 
eligible partnerships to carry out the activities described in 
subsections (d) and (e).
    ``(b) Definitions.--
            ``(1) Eligible partnerships.--In this part, the term 
        `eligible partnership' means an entity that--
                    ``(A) shall include--
                            ``(i) a partner institution;
                            ``(ii) a school of arts and sciences;
                            ``(iii) a high-need local educational 
                        agency; and
                            ``(iv) a public or private educational 
                        organization; and
                    ``(B) may include a Governor, State educational 
                agency, the State board of education, the State agency 
                for higher education, an institution of higher 
                education not described in subparagraph (A), a public 
                charter school, a public or private elementary school 
                or secondary school, a public or private educational 
                organization, a business, a science-, mathematics-, or 
                technology-oriented entity, a faith-based or community 
                organization, a prekindergarten program, a teacher 
                organization, an education service agency, a consortia 
                of local educational agencies, or a nonprofit 
                telecommunications entity.
            ``(2) Partner institution.--In this section, the term 
        `partner institution' means an institution of higher education, 
        the teacher training program of which demonstrates that--
                    ``(A) graduates from the teacher training program 
                exhibit strong performance on State-determined 
                qualifying assessments for new teachers through--
                            ``(i) demonstrating that the graduates of 
                        the program who intend to enter the field of 
                        teaching have passed all of the applicable 
                        State qualification assessments for new 
                        teachers, which shall include an assessment of 
                        each prospective teacher's subject matter 
                        knowledge in the content area or areas in which 
                        the teacher intends to teach; or
                            ``(ii) being ranked among the highest-
                        performing teacher preparation programs in the 
                        State as determined by the State--
                                    ``(I) using criteria consistent 
                                with the requirements for the State 
                                report card under section 207(a); and
                                    ``(II) using the State report card 
                                on teacher preparation required under 
                                section 207(a); or
                    ``(B) the teacher training program requires all the 
                students of the program to participate in intensive 
                clinical experience, to meet high academic standards, 
                and--
                            ``(i) in the case of secondary school 
                        candidates, to successfully complete an 
                        academic major in the subject area in which the 
                        candidate intends to teach or to demonstrate 
                        competence through a high level of performance 
                        in relevant content areas; and
                            ``(ii) in the case of elementary school 
                        candidates, to successfully complete an 
                        academic major in the arts and sciences or to 
                        demonstrate competence through a high level of 
                        performance in core academic subject areas.
    ``(c) Application.--Each eligible partnership desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require. Each such application shall--
            ``(1) contain a needs assessment of all the partners with 
        respect to teaching and learning and a description of how the 
        partnership will coordinate with other teacher training or 
        professional development programs, and how the activities of 
        the partnership will be consistent with State, local, and other 
        education reform activities that promote student academic 
        achievement;
            ``(2) contain a resource assessment that describes the 
        resources available to the partnership, the intended use of the 
        grant funds, including a description of how the grant funds 
        will be used in accordance with subsection (f), and the 
        commitment of the resources of the partnership to the 
        activities assisted under this part, including financial 
        support, faculty participation, time commitments, and 
        continuation of the activities when the grant ends;
            ``(3) contain a description of--
                    ``(A) how the partnership will meet the purposes of 
                this part;
                    ``(B) how the partnership will carry out the 
                activities required under subsection (d) and any 
                permissible activities under subsection (e);
                    ``(C) the partnership's evaluation plan pursuant to 
                section 206(b);
                    ``(D) how faculty of the teacher preparation 
                program at the partner institution will serve, over the 
                term of the grant, with highly qualified teachers in 
                the classrooms of the high-need local educational 
                agency included in the partnership;
                    ``(E) how the partnership will ensure that 
                teachers, principals, and superintendents in private 
                elementary and secondary schools located in the 
                geographic areas served by an eligible partnership 
                under this section will participate equitably in 
                accordance with section 9501 of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7881);
                    ``(F) how the partnership will design and implement 
                a clinical program component that includes close 
                supervision of student teachers by faculty of the 
                teacher preparation program at the partner institution 
                and mentor teachers;
                    ``(G) how the partnership will design and implement 
                an induction program to support all new teachers 
                through the first 3 years of teaching that includes 
                mentors who are trained and compensated by the 
                partnership for their work with new teachers; and
                    ``(H) how the partnership will collect, analyze, 
                and use data on the retention of all teachers in 
                schools located in the geographic areas served by the 
                partnership to evaluate the effectiveness of its 
                teacher support system; and
            ``(4) contain a certification from the high-need local 
        educational agency included in the partnership that it has 
        reviewed the application and determined that the grant proposed 
        will comply with subsection (f).
    ``(d) Required Uses of Funds.--An eligible partnership that 
receives a grant under this section shall use the grant funds to reform 
teacher preparation requirements, to coordinate with State activities 
under section 2113(c) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6613(c)), and to ensure that current and future 
teachers are highly qualified, by carrying out one or more of the 
following activities:
            ``(1) Reforms.--Implementing reforms within teacher 
        preparation programs to ensure that such programs are preparing 
        teachers who are highly qualified, are able to understand 
        scientifically based research and its applicability, and are 
        able to use advanced technology effectively in the classroom, 
        including use for instructional techniques to improve student 
        academic achievement, by--
                    ``(A) retraining faculty; and
                    ``(B) designing (or redesigning) teacher 
                preparation programs so they--
                            ``(i) are based on rigorous academic 
                        content, scientifically based research 
                        (including scientifically based reading 
                        research), and challenging State student 
                        academic content standards; and
                            ``(ii) promote strong teaching skills.
            ``(2) Clinical experience and interaction.--Providing 
        sustained and high-quality preservice and in-service clinical 
        experience, including the mentoring of prospective teachers by 
        exemplary teachers, substantially increasing interaction 
        between faculty at institutions of higher education and new and 
        experienced teachers, principals, and other administrators at 
        elementary schools or secondary schools, and providing support 
        for teachers, including preparation time and release time, for 
        such interaction.
            ``(3) Professional development.--Creating opportunities for 
        enhanced and ongoing professional development that improves the 
        academic content knowledge of teachers in the subject areas in 
        which the teachers are certified to teach or in which the 
        teachers are working toward certification to teach, and that 
        promotes strong teaching skills.
            ``(4) Teacher preparation.--Developing, or assisting local 
        educational agencies in developing, professional development 
        activities that--
                    ``(A) provide training in how to teach and address 
                the needs of students with different learning styles, 
                particularly students with disabilities, limited 
                English proficient students, and students with special 
                learning needs; and
                    ``(B) provide training in methods of--
                            ``(i) improving student behavior in the 
                        classroom; and
                            ``(ii) identifying early and appropriate 
                        interventions to help students described in 
                        subparagraph (A) learn.
    ``(e) Allowable Uses of Funds.--An eligible partnership that 
receives a grant under this section may use such funds to carry out the 
following activities:
            ``(1) Alternatives to traditional teacher preparation and 
        state certification.--Providing prospective teachers with 
        alternative routes to State certification and traditional 
        preparation to become highly qualified teachers through--
                    ``(A) innovative approaches that reduce unnecessary 
                barriers to teacher preparation while producing highly 
                qualified teachers;
                    ``(B) programs that provide support during a 
                teacher's initial years in the profession; and
                    ``(C) alternative routes to State certification of 
                teachers for qualified individuals, including mid-
                career professionals from other occupations, former 
                military personnel, and recent college graduates with 
                records of academic distinction.
            ``(2) Dissemination and coordination.--Broadly 
        disseminating information on effective practices used by the 
        partnership, and coordinating with the activities of the 
        Governor, State board of education, State higher education 
        agency, and State educational agency, as appropriate.
            ``(3) Managerial and leadership skills.--Developing and 
        implementing professional development programs for principals 
        and superintendents that enable them to be effective school 
        leaders and prepare all students to meet challenging State 
        academic content and student academic achievement standards.
            ``(4) Teacher recruitment.--Activities--
                    ``(A) to encourage students to become highly 
                qualified teachers, such as extracurricular enrichment 
                activities; and
                    ``(B) activities described in section 204(d).
            ``(5) Clinical experience in science, mathematics, and 
        technology.--Creating opportunities for clinical experience and 
        training, by participation in the business, research, and work 
        environments with professionals, in areas relating to science, 
        mathematics, and technology for teachers and prospective 
        teachers, including opportunities for use of laboratory 
        equipment, in order for the teacher to return to the classroom 
        for at least 2 years and provide instruction that will raise 
        student academic achievement.
            ``(6) Coordination with community colleges.--Coordinating 
        with community colleges to implement teacher preparation 
        programs, including through distance learning, for the purposes 
        of allowing prospective teachers--
                    ``(A) to attain a bachelor's degree and State 
                certification or licensure; and
                    ``(B) to become highly qualified teachers.
            ``(7) Teacher mentoring.--Establishing or implementing a 
        teacher mentoring program that--
                    ``(A) includes minimum qualifications for mentors;
                    ``(B) provides training and stipends for mentors;
                    ``(C) provides mentoring programs for teachers in 
                their first 3 years of teaching;
                    ``(D) provides regular and ongoing opportunities 
                for mentors and mentees to observe each other's 
                teaching methods in classroom settings during the 
                school day;
                    ``(E) establishes an evaluation and accountability 
                plan for activities conducted under this paragraph that 
                includes rigorous objectives to measure the impact of 
                such activities; and
                    ``(F) provides for a report to the Secretary on an 
                annual basis regarding the partnership's progress in 
                meeting the objectives described in subparagraph (E).
            ``(8) Computer software for multilingual education.--
        Training teachers to use computer software for multilingual 
        education to address the needs of limited English proficient 
        students.
    ``(f) Special Rule.--At least 50 percent of the funds made 
available to an eligible partnership under this section shall be used 
directly to benefit the high-need local educational agency included in 
the partnership. Any entity described in subsection (b)(1)(A) may be 
the fiscal agent under this section.
    ``(g) Construction.--Nothing in this section shall be construed to 
prohibit an eligible partnership from using grant funds to coordinate 
with the activities of more than one Governor, State board of 
education, State educational agency, local educational agency, or State 
agency for higher education.
    ``(h) Supplement, not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
the purposes of this section.

``SEC. 204. TEACHER RECRUITMENT GRANTS.

    ``(a) Program Authorized.--From amounts made available under 
section 210(3) for a fiscal year, the Secretary is authorized to award 
grants, on a competitive basis, to eligible applicants to enable the 
eligible applicants to carry out activities described in subsection 
(d).
    ``(b) Eligible Applicant Defined.--In this part, the term `eligible 
applicant' means--
            ``(1) an eligible State described in section 202(b); or
            ``(2) an eligible partnership described in section 203(b).
    ``(c) Application.--Any eligible applicant desiring to receive a 
grant under this section shall submit an application to the Secretary 
at such time, in such form, and containing such information as the 
Secretary may require, including--
            ``(1) a description of the assessment that the eligible 
        applicant, and the other entities with whom the eligible 
        applicant will carry out the grant activities, have undertaken 
        to determine the most critical needs of the participating high-
        need local educational agencies;
            ``(2) a description of the activities the eligible 
        applicant will carry out with the grant, including the extent 
        to which the applicant will use funds to recruit minority 
        students to become highly qualified teachers; and
            ``(3) a description of the eligible applicant's plan for 
        continuing the activities carried out with the grant, once 
        Federal funding ceases.
    ``(d) Uses of Funds.--Each eligible applicant receiving a grant 
under this section shall use the grant funds--
            ``(1)(A) to award scholarships to help students, such as 
        individuals who have been accepted for their first year, or who 
        are enrolled in their first or second year, of a program of 
        undergraduate education at an institution of higher education, 
        pay the costs of tuition, room, board, and other expenses of 
        completing a teacher preparation program;
            ``(B) to provide support services, if needed to enable 
        scholarship recipients--
                    ``(i) to complete postsecondary education programs; 
                or
                    ``(ii) to transition from a career outside of the 
                field of education into a teaching career; and
            ``(C) for followup services provided to former scholarship 
        recipients during the recipients first 3 years of teaching; or
            ``(2) to develop and implement effective mechanisms to 
        ensure that high-need local educational agencies and schools 
        are able effectively to recruit highly qualified teachers.
    ``(e) Additional Discretionary Uses of Funds.--In addition to the 
uses described in subsection (d), each eligible applicant receiving a 
grant under this section may use the grant funds--
            ``(1) to develop and implement effective mechanisms to 
        recruit into the teaching profession employees from--
                    ``(A) high-demand industries, including technology 
                industries; and
                    ``(B) the fields of science, mathematics, and 
                engineering; and
            ``(2) to conduct outreach and coordinate with inner city 
        and rural secondary schools to encourage students to pursue 
        teaching as a career.
    ``(f) Service Requirements.--
            ``(1) In general.--The Secretary shall establish such 
        requirements as the Secretary determines necessary to ensure 
        that recipients of scholarships under this section who complete 
        teacher education programs--
                    ``(A) subsequently teach in a high-need local 
                educational agency for a period of time equivalent to--
                            ``(i) one year; increased by
                            ``(ii) the period for which the recipient 
                        received scholarship assistance; or
                    ``(B) repay the amount of the scholarship.
            ``(2) Use of repayments.--The Secretary shall use any such 
        repayments to carry out additional activities under this 
        section.
    ``(g) Priority.--The Secretary shall give priority under this 
section to eligible applicants who provide an assurance that they will 
recruit a high percentage of minority students to become highly 
qualified teachers.

``SEC. 205. ADMINISTRATIVE PROVISIONS.

    ``(a) Duration; One-Time Awards; Payments.--
            ``(1) Duration.--
                    ``(A) Eligible states and eligible applicants.--
                Grants awarded to eligible States and eligible 
                applicants under this part shall be awarded for a 
                period not to exceed 3 years.
                    ``(B) Eligible partnerships.--Grants awarded to 
                eligible partnerships under this part shall be awarded 
                for a period of 5 years.
            ``(2) One-time award.--An eligible partnership may receive 
        a grant under each of sections 203 and 204, as amended by the 
        College Access and Opportunity Act of 2005, only once.
            ``(3) Payments.--The Secretary shall make annual payments 
        of grant funds awarded under this part.
    ``(b) Peer Review.--
            ``(1) Panel.--The Secretary shall provide the applications 
        submitted under this part to a peer review panel for 
        evaluation. With respect to each application, the peer review 
        panel shall initially recommend the application for funding or 
        for disapproval.
            ``(2) Priority.--In recommending applications to the 
        Secretary for funding under this part, the panel shall--
                    ``(A) with respect to grants under section 202, 
                give priority to eligible States that--
                            ``(i) have initiatives to reform State 
                        teacher certification requirements that are 
                        based on rigorous academic content, 
                        scientifically based research, including 
                        scientifically based reading research, and 
                        challenging State student academic content 
                        standards;
                            ``(ii) have innovative reforms to hold 
                        institutions of higher education with teacher 
                        preparation programs accountable for preparing 
                        teachers who are highly qualified and have 
                        strong teaching skills; or
                            ``(iii) have innovative efforts aimed at 
                        reducing the shortage of highly qualified 
                        teachers in high poverty urban and rural areas; 
                        and
                    ``(B) with respect to grants under section 203--
                            ``(i) give priority to applications from 
                        broad-based eligible partnerships that involve 
                        businesses and community organizations; and
                            ``(ii) take into consideration--
                                    ``(I) providing an equitable 
                                geographic distribution of the grants 
                                throughout the United States; and
                                    ``(II) the potential of the 
                                proposed activities for creating 
                                improvement and positive change.
            ``(3) Secretarial selection.--The Secretary shall 
        determine, based on the peer review process, which application 
        shall receive funding and the amounts of the grants. In 
        determining grant amounts, the Secretary shall take into 
        account the total amount of funds available for all grants 
        under this part and the types of activities proposed to be 
        carried out.
    ``(c) Matching Requirements.--
            ``(1) State grants.--Each eligible State receiving a grant 
        under section 202 or 204 shall provide, from non-Federal 
        sources, an amount equal to 50 percent of the amount of the 
        grant (in cash or in kind) to carry out the activities 
        supported by the grant.
            ``(2) Partnership grants.--Each eligible partnership 
        receiving a grant under section 203 or 204 shall provide, from 
        non-Federal sources (in cash or in kind), an amount equal to 25 
        percent of the grant for the first year of the grant, 35 
        percent of the grant for the second year of the grant, and 50 
        percent of the grant for each succeeding year of the grant.
    ``(d) Limitation on Administrative Expenses.--An eligible State or 
eligible partnership that receives a grant under this part may not use 
more than 2 percent of the grant funds for purposes of administering 
the grant.

``SEC. 206. ACCOUNTABILITY AND EVALUATION.

    ``(a) State Grant Accountability Report.--An eligible State that 
receives a grant under section 202 shall submit an annual 
accountability report to the Secretary, the Committee on Health, 
Education, Labor, and Pensions of the Senate, and the Committee on 
Education and the Workforce of the House of Representatives. Such 
report shall include a description of the degree to which the eligible 
State, in using funds provided under such section, has made substantial 
progress in meeting the following goals:
            ``(1) Percentage of highly qualified teachers.--Increasing 
        the percentage of highly qualified teachers in the State as 
        required by section 1119 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6319).
            ``(2) Student academic achievement.--Increasing student 
        academic achievement for all students as defined by the 
        eligible State.
            ``(3) Raising standards.--Raising the State academic 
        standards required to enter the teaching profession as a highly 
        qualified teacher.
            ``(4) Initial certification or licensure.--Increasing 
        success in the pass rate for initial State teacher 
        certification or licensure, or increasing the numbers of 
        qualified individuals being certified or licensed as teachers 
        through alternative programs.
            ``(5) Decreasing teacher shortages.--Decreasing shortages 
        of highly qualified teachers in poor urban and rural areas.
            ``(6) Increasing opportunities for professional 
        development.--Increasing opportunities for enhanced and ongoing 
        professional development that--
                    ``(A) improves the academic content knowledge of 
                teachers in the subject areas in which the teachers are 
                certified or licensed to teach or in which the teachers 
                are working toward certification or licensure to teach; 
                and
                    ``(B) promotes strong teaching skills.
            ``(7) Technology integration.--Increasing the number of 
        teachers prepared effectively to integrate technology into 
        curricula and instruction and who use technology to collect, 
        manage, and analyze data to improve teaching, learning, and 
        decisionmaking for the purpose of increasing student academic 
        achievement.
    ``(b) Eligible Partnership Evaluation.--Each eligible partnership 
applying for a grant under section 203 shall establish, and include in 
the application submitted under section 203(c), an evaluation plan that 
includes strong performance objectives. The plan shall include 
objectives and measures for--
            ``(1) increased student achievement for all students, as 
        measured by the partnership;
            ``(2) increased teacher retention in the first 3 years of a 
        teacher's career;
            ``(3) increased success in the pass rate for initial State 
        certification or licensure of teachers;
            ``(4) increased percentage of highly qualified teachers; 
        and
            ``(5) increasing the number of teachers trained effectively 
        to integrate technology into curricula and instruction and who 
        use technology to collect, manage, and analyze data to improve 
        teaching, learning, and decisionmaking for the purpose of 
        improving student academic achievement.
    ``(c) Revocation of Grant.--
            ``(1) Report.--Each eligible State or eligible partnership 
        receiving a grant under section 202 or 203 shall report 
        annually on the progress of the eligible State or eligible 
        partnership toward meeting the purposes of this part and the 
        goals, objectives, and measures described in subsections (a) 
        and (b).
            ``(2) Revocation.--
                    ``(A) Eligible states and eligible applicants.--If 
                the Secretary determines that an eligible State or 
                eligible applicant is not making substantial progress 
                in meeting the purposes, goals, objectives, and 
                measures, as appropriate, by the end of the second year 
                of a grant under this part, then the grant payment 
                shall not be made for the third year of the grant.
                    ``(B) Eligible partnerships.--If the Secretary 
                determines that an eligible partnership is not making 
                substantial progress in meeting the purposes, goals, 
                objectives, and measures, as appropriate, by the end of 
                the third year of a grant under this part, then the 
                grant payments shall not be made for any succeeding 
                year of the grant.
    ``(d) Evaluation and Dissemination.--The Secretary shall evaluate 
the activities funded under this part and report annually the 
Secretary's findings regarding the activities to the Committee on 
Health, Education, Labor, and Pensions of the Senate and the Committee 
on Education and the Workforce of the House of Representatives. The 
Secretary shall broadly disseminate successful practices developed by 
eligible States and eligible partnerships under this part, and shall 
broadly disseminate information regarding such practices that were 
found to be ineffective.

``SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.

    ``(a) State Report Card on the Quality of Teacher Preparation.--
Each State that receives funds under this Act shall provide to the 
Secretary annually, in a uniform and comprehensible manner that 
conforms with the definitions and methods established by the Secretary, 
a State report card on the quality of teacher preparation in the State, 
both for traditional certification or licensure programs and for 
alternative certification or licensure programs, which shall include at 
least the following:
            ``(1) A description of the teacher certification and 
        licensure assessments, and any other certification and 
        licensure requirements, used by the State.
            ``(2) The standards and criteria that prospective teachers 
        must meet in order to attain initial teacher certification or 
        licensure and to be certified or licensed to teach particular 
        subjects or in particular grades within the State.
            ``(3) A description of the extent to which the assessments 
        and requirements described in paragraph (1) are aligned with 
        the State's standards and assessments for students.
            ``(4) The percentage of students who have completed at 
        least 50 percent of the requirements for a teacher preparation 
        program at an institution of higher education or alternative 
        certification program and who have taken and passed each of the 
        assessments used by the State for teacher certification and 
        licensure, and the passing score on each assessment that 
        determines whether a candidate has passed that assessment.
            ``(5) For students who have completed at least 50 percent 
        of the requirements for a teacher preparation program at an 
        institution of higher education or alternative certification 
        program, and who have taken and passed each of the assessments 
        used by the State for teacher certification and licensure, each 
        such institution's and each such program's average raw score, 
        ranked by teacher preparation program, which shall be made 
        available widely and publicly.
            ``(6) A description of each State's alternative routes to 
        teacher certification, if any, and the number and percentage of 
        teachers certified through each alternative certification route 
        who pass State teacher certification or licensure assessments.
            ``(7) For each State, a description of proposed criteria 
        for assessing the performance of teacher preparation programs 
        in the State, including indicators of teacher candidate skills 
        and academic content knowledge and evidence of gains in student 
        academic achievement.
            ``(8) For each teacher preparation program in the State, 
        the number of students in the program, the average number of 
        hours of supervised practice teaching required for those in the 
        program, and the number of full-time equivalent faculty and 
        students in supervised practice teaching.
    ``(b) Report of the Secretary on the Quality of Teacher 
Preparation.--
            ``(1) Report card.--The Secretary shall provide to 
        Congress, and publish and make widely available, a report card 
        on teacher qualifications and preparation in the United States, 
        including all the information reported in paragraphs (1) 
        through (8) of subsection (a). Such report shall identify 
        States for which eligible States and eligible partnerships 
        received a grant under this part. Such report shall be so 
        provided, published and made available annually.
            ``(2) Report to congress.--The Secretary shall report to 
        Congress--
                    ``(A) a comparison of States' efforts to improve 
                teaching quality; and
                    ``(B) regarding the national mean and median scores 
                on any standardized test that is used in more than 1 
                State for teacher certification or licensure.
            ``(3) Special rule.--In the case of programs with fewer 
        than 10 students who have completed at least 50 percent of the 
        requirements for a teacher preparation program taking any 
        single initial teacher certification or licensure assessment 
        during an academic year, the Secretary shall collect and 
        publish information with respect to an average pass rate on 
        State certification or licensure assessments taken over a 3-
        year period.
    ``(c) Coordination.--The Secretary, to the extent practicable, 
shall coordinate the information collected and published under this 
part among States for individuals who took State teacher certification 
or licensure assessments in a State other than the State in which the 
individual received the individual's most recent degree.
    ``(d) Institution and Program Report Cards on Quality of Teacher 
Preparation.--
            ``(1) Report card.--Each institution of higher education or 
        alternative certification program that conducts a teacher 
        preparation program that enrolls students receiving Federal 
        assistance under this Act shall report annually to the State 
        and the general public, in a uniform and comprehensible manner 
        that conforms with the definitions and methods established by 
        the Secretary, both for traditional certification or licensure 
        programs and for alternative certification or licensure 
        programs, the following information:
                    ``(A) Pass rate.--(i) For the most recent year for 
                which the information is available, the pass rate of 
                each student who has completed at least 50 percent of 
                the requirements for the teacher preparation program on 
                the teacher certification or licensure assessments of 
                the State in which the institution is located, but only 
                for those students who took those assessments within 3 
                years of receiving a degree from the institution or 
                completing the program.
                    ``(ii) A comparison of the institution or program's 
                pass rate for students who have completed at least 50 
                percent of the requirements for the teacher preparation 
                program with the average pass rate for institutions and 
                programs in the State.
                    ``(iii) A comparison of the institution or 
                program's average raw score for students who have 
                completed at least 50 percent of the requirements for 
                the teacher preparation program with the average raw 
                scores for institutions and programs in the State.
                    ``(iv) In the case of programs with fewer than 10 
                students who have completed at least 50 percent of the 
                requirements for a teacher preparation program taking 
                any single initial teacher certification or licensure 
                assessment during an academic year, the institution 
                shall collect and publish information with respect to 
                an average pass rate on State certification or 
                licensure assessments taken over a 3-year period.
                    ``(B) Program information.--The number of students 
                in the program, the average number of hours of 
                supervised practice teaching required for those in the 
                program, and the number of full-time equivalent faculty 
                and students in supervised practice teaching.
                    ``(C) Statement.--In States that require approval 
                or accreditation of teacher education programs, a 
                statement of whether the institution's program is so 
                approved or accredited, and by whom.
                    ``(D) Designation as low-performing.--Whether the 
                program has been designated as low-performing by the 
                State under section 208(a).
            ``(2) Requirement.--The information described in paragraph 
        (1) shall be reported through publications such as school 
        catalogs and promotional materials sent to potential 
        applicants, secondary school guidance counselors, and 
        prospective employers of the institution's program graduates, 
        including materials sent by electronic means.
            ``(3) Fines.--In addition to the actions authorized in 
        section 487(c), the Secretary may impose a fine not to exceed 
        $25,000 on an institution of higher education for failure to 
        provide the information described in this subsection in a 
        timely or accurate manner.
    ``(e) Data Quality.--Either--
            ``(1) the Governor of the State; or
            ``(2) in the case of a State for which the constitution or 
        law of such State designates another individual, entity, or 
        agency in the State to be responsible for teacher certification 
        and preparation activity, such individual, entity, or agency;

``SEC. 208. STATE FUNCTIONS.

    ``(a) State Assessment.--In order to receive funds under this Act, 
a State shall have in place a procedure to identify and assist, through 
the provision of technical assistance, low-performing programs of 
teacher preparation within institutions of higher education. Such State 
shall provide the Secretary an annual list of such low-performing 
institutions that includes an identification of those institutions at 
risk of being placed on such list. Such levels of performance shall be 
determined solely by the State and may include criteria based upon 
information collected pursuant to this part. Such assessment shall be 
described in the report under section 207(a).
    ``(b) Termination of Eligibility.--Any institution of higher 
education that offers a program of teacher preparation in which the 
State has withdrawn the State's approval or terminated the State's 
financial support due to the low performance of the institution's 
teacher preparation program based upon the State assessment described 
in subsection (a)--
            ``(1) shall be ineligible for any funding for professional 
        development activities awarded by the Department of Education; 
        and
            ``(2) shall not be permitted to accept or enroll any 
        student who receives aid under title IV of this Act in the 
        institution's teacher preparation program.

``SEC. 209. GENERAL PROVISIONS.

    ``(a) Methods.--In complying with sections 207 and 208, the 
Secretary shall ensure that States and institutions of higher education 
use fair and equitable methods in reporting and that the reporting 
methods do not allow identification of individuals.
    ``(b) Special Rule.--For each State in which there are no State 
certification or licensure assessments, or for States that do not set 
minimum performance levels on those assessments--
            ``(1) the Secretary shall, to the extent practicable, 
        collect data comparable to the data required under this part 
        from States, local educational agencies, institutions of higher 
        education, or other entities that administer such assessments 
        to teachers or prospective teachers; and
            ``(2) notwithstanding any other provision of this part, the 
        Secretary shall use such data to carry out requirements of this 
        part related to assessments or pass rates.
    ``(c) Limitations.--
            ``(1) Federal control prohibited.--Nothing in this part 
        shall be construed to permit, allow, encourage, or authorize 
        any Federal control over any aspect of any private, religious, 
        or home school, whether or not a home school is treated as a 
        private school or home school under State law. This section 
        shall not be construed to prohibit private, religious, or home 
        schools from participation in programs or services under this 
        part.
            ``(2) No change in state control encouraged or required.--
        Nothing in this part shall be construed to encourage or require 
        any change in a State's treatment of any private, religious, or 
        home school, whether or not a home school is treated as a 
        private school or home school under State law.
            ``(3) National system of teacher certification 
        prohibited.--Nothing in this part shall be construed to permit, 
        allow, encourage, or authorize the Secretary to establish or 
        support any national system of teacher certification.

``SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$300,000,000 for fiscal year 2006 and such sums as may be necessary for 
each of the 5 succeeding fiscal years, of which--
            ``(1) 45 percent shall be available for each fiscal year to 
        award grants under section 202;
            ``(2) 45 percent shall be available for each fiscal year to 
        award grants under section 203; and
            ``(3) 10 percent shall be available for each fiscal year to 
        award grants under section 204.''.

SEC. 202. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.

    (a) Eligibility.--Section 222(a)(3)(D) of the Higher Education Act 
of 1965 (20 U.S.C. 1042(a)(3)(D)) is amended by inserting ``nonprofit 
telecommunications entity,'' after ``community-based organization,''.
    (b) Permissible Uses of Funds.--Section 223(b)(1)(E) of the Higher 
Education Act of 1965 (20 U.S.C. 1043(b)(1)(E)) is amended to read as 
follows:
                    ``(E) To use technology to collect, manage, and 
                analyze data to improve teaching, learning, and 
                decisionmaking for the purpose of increasing student 
                academic achievement.''.
    (c) Authorization of Appropriations.--Section 224 of the Higher 
Education Act of 1965 (20 U.S.C. 1044) is amended by striking ``each of 
fiscal years 2002 and 2003.'' and inserting ``fiscal year 2006 and each 
of the 5 succeeding fiscal years.''.

SEC. 203. CENTERS OF EXCELLENCE.

    Title II of the Higher Education Act of 1965 (20 U.S.C. 1021 et 
seq.) is amended by adding at the end the following:

                    ``PART C--CENTERS OF EXCELLENCE

``SEC. 231. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are--
            ``(1) to help recruit and prepare teachers, including 
        minority teachers, to meet the national demand for a highly 
        qualified teacher in every classroom; and
            ``(2) to increase opportunities for Americans of all 
        educational, ethnic, class, and geographic backgrounds to 
        become highly qualified teachers.
    ``(b) Definitions.--As used in this part:
            ``(1) Eligible institution.--The term `eligible 
        institution' means--
                    ``(A) an institution of higher education that has a 
                teacher preparation program that meets the requirements 
                of section 203(b)(2) and that is--
                            ``(i) a part B institution (as defined in 
                        section 322);
                            ``(ii) a Hispanic-serving institution (as 
                        defined in section 502);
                            ``(iii) a Tribal College or University (as 
                        defined in section 316);
                            ``(iv) an Alaska Native-serving institution 
                        (as defined in section 317(b)); or
                            ``(v) a Native Hawaiian-serving institution 
                        (as defined in section 317(b));
                    ``(B) a consortium of institutions described in 
                subparagraph (A); or
                    ``(C) an institution described in subparagraph (A), 
                or a consortium described in subparagraph (B), in 
                partnership with any other institution of higher 
                education, but only if the center of excellence 
                established under section 232 is located at an 
                institution described in subparagraph (A).
            ``(2) Highly qualified.--The term `highly qualified' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            ``(3) Scientifically based reading research.--The term 
        `scientifically based reading research' has the meaning given 
        such term in section 1208 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6368).
            ``(4) Scientifically based research.--The term 
        `scientifically based research' has the meaning given such term 
        in section 9101 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7801).

``SEC. 232. CENTERS OF EXCELLENCE.

    ``(a) Program Authorized.--From the amounts appropriated to carry 
out this part, the Secretary is authorized to award competitive grants 
to eligible institutions to establish centers of excellence.
    ``(b) Use of Funds.--Grants provided by the Secretary under this 
part shall be used to ensure that current and future teachers are 
highly qualified, by carrying out one or more of the following 
activities:
            ``(1) Implementing reforms within teacher preparation 
        programs to ensure that such programs are preparing teachers 
        who are highly qualified, are able to understand scientifically 
        based research, and are able to use advanced technology 
        effectively in the classroom, including use for instructional 
        techniques to improve student academic achievement, by--
                    ``(A) retraining faculty; and
                    ``(B) designing (or redesigning) teacher 
                preparation programs that--
                            ``(i) prepare teachers to close student 
                        achievement gaps, are based on rigorous 
                        academic content, scientifically based research 
                        (including scientifically based reading 
                        research), and challenging State student 
                        academic content standards; and
                            ``(ii) promote strong teaching skills.
            ``(2) Providing sustained and high-quality preservice 
        clinical experience, including the mentoring of prospective 
        teachers by exemplary teachers, substantially increasing 
        interaction between faculty at institutions of higher education 
        and new and experienced teachers, principals, and other 
        administrators at elementary schools or secondary schools, and 
        providing support, including preparation time, for such 
        interaction.
            ``(3) Developing and implementing initiatives to promote 
        retention of highly qualified teachers and principals, 
        including minority teachers and principals, including programs 
        that provide--
                    ``(A) teacher or principal mentoring from exemplary 
                teachers or principals; or
                    ``(B) induction and support for teachers and 
                principals during their first 3 years of employment as 
                teachers or principals, respectively.
            ``(4) Awarding scholarships based on financial need to help 
        students pay the costs of tuition, room, board, and other 
        expenses of completing a teacher preparation program.
            ``(5) Disseminating information on effective practices for 
        teacher preparation and successful teacher certification and 
        licensure assessment preparation strategies.
            ``(6) Activities authorized under sections 202, 203, and 
        204.
    ``(c) Application.--Any eligible institution desiring a grant under 
this section shall submit an application to the Secretary at such a 
time, in such a manner, and accompanied by such information the 
Secretary may require.
    ``(d) Minimum Grant Amount.--The minimum amount of each grant under 
this part shall be $500,000.
    ``(e) Limitation on Administrative Expenses.--An eligible 
institution that receives a grant under this part may not use more than 
2 percent of the grant funds for purposes of administering the grant.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out this part.

``SEC. 233. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$10,000,000 for fiscal year 2006 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.''.

SEC. 204. TRANSITION.

    The Secretary of Education shall take such actions as the Secretary 
determines to be appropriate to provide for the orderly implementation 
of this title.

                      TITLE III--INSTITUTIONAL AID

SEC. 301. TITLE III GRANTS FOR AMERICAN INDIAN TRIBALLY CONTROLLED 
              COLLEGES AND UNIVERSITIES.

    (a) Eligible Institutions.--Subsection (b) of section 316 (20 
U.S.C. 1059c(b)) is amended to read as follows:
    ``(b) Definitions.--
            ``(1) Eligible institutions.--For purposes of this section, 
        Tribal Colleges and Universities are the following:
                    ``(A) any of the following institutions that 
                qualify for funding under the Tribally Controlled 
                College or University Assistance Act of 1978 or is 
                listed in Equity in Educational Land Grant Status Act 
                of 1994 (7 U.S.C. 301 note): Bay Mills Community 
                College; Blackfeet Community College; Cankdeska Cikana 
                Community College; Chief Dull Knife College; College of 
                Menominee Nation; Crownpoint Institute of Technology; 
                Dine College; D-Q University; Fond du Lac Tribal and 
                Community College; Fort Belknap College; Fort Berthold 
                Community College; Fort Peck Community College; Haskell 
                Indian Nations University; Institute of American Indian 
                and Alaska Native Culture and Arts Development; Lac 
                Courte Oreilles Ojibwa Community College; Leech Lake 
                Tribal College; Little Big Horn College; Little Priest 
                Tribal College; Nebraska Indian Community College; 
                Northwest Indian College; Oglala Lakota College; 
                Saginaw Chippewa Tribal College; Salish Kootenai 
                College; Si Tanka University--Eagle Butte Campus; Sinte 
                Gleska University; Sisseton Wahpeton Community College; 
                Sitting Bull College; Southwestern Indian Polytechnic 
                Institute; Stone Child College; Tohono O'Odham 
                Community College; Turtle Mountain Community College; 
                United Tribes Technical College; and White Earth Tribal 
                and Community College; and
                    ``(B) any other institution that meets the 
                definition of tribally controlled college or university 
                in section 2 of the Tribally Controlled College or 
                University Assistance Act of 1978, and meets all other 
                requirements of this section.
            ``(2) Indian.--The term `Indian' has the meaning given the 
        term in section 2 of the Tribally Controlled College or 
        University Assistance Act of 1978.''.
    (b) Distance Learning.--Subsection (c)(2) of such section is 
amended--
            (1) by amending subparagraph (B) to read as follows:
                    ``(B) construction, maintenance, renovation, and 
                improvement in classrooms, libraries, laboratories, and 
                other instructional facilities, including purchase or 
                rental of telecommunications technology equipment or 
                services, and the acquisition of real property adjacent 
                to the campus of the institution on which to construct 
                such facilities;'';
            (2) by striking ``and'' at the end of subparagraph (K);
            (3) by redesignating subparagraph (L) as subparagraph (M); 
        and
            (4) by inserting after subparagraph (K) the following new 
        subparagraph:
                    ``(L) developing or improving facilities for 
                Internet use or other distance learning academic 
                instruction capabilities; and''.
    (c) Application and Allotment.--Subsection (d) of such section is 
amended to read as follows:
    ``(d) Application and Allotment.--
            ``(1) Institutional eligibility.--To be eligible to receive 
        assistance under this section, a Tribal College or University 
        shall be an eligible institution under section 312(b).
            ``(2) Application.--Any Tribal College or University 
        desiring to receive assistance under this section shall submit 
        an application to the Secretary at such time, and in such 
        manner, as the Secretary may reasonably require.
            ``(3) Allotments to institutions.--
                    ``(A) Allotment: pell grant basis.--From the amount 
                appropriated to carry out this section for any fiscal 
                year, the Secretary shall allot to each eligible 
                institution a sum which bears the same ratio to one-
                half that amount as the number of Pell Grant recipients 
                in attendance at such institution at the end of the 
                award year preceding the beginning of that fiscal year 
                bears to the total number of Pell Grant recipients at 
                all eligible institutions.
                    ``(B) Allotment: degree and certificate basis.--
                From the amount appropriated to carry out this section 
                for any fiscal year, the Secretary shall allot to each 
                eligible institution a sum which bears the same ratio 
                to one-half that amount as the number of degrees or 
                certificates awarded by such institution during the 
                preceding academic year bears to the total number of 
                degrees or certificates at all eligible institutions.
                    ``(C) Minimum grant.--Notwithstanding subparagraphs 
                (A) and (B), the amount allotted to each institution 
                under this section shall not be less than $400,000.
            ``(4) Special rules.--
                    ``(A) Concurrent funding.--For the purposes of this 
                part, no Tribal College or University that is eligible 
                for and receives funds under this section shall 
                concurrently receive funds under other provisions of 
                this part or part B.
                    ``(B) Exemption.--Section 313(d) shall not apply to 
                institutions that are eligible to receive funds under 
                this section.''.

SEC. 302. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

    (a) Distance Learning.--Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) 
is amended--
            (1) by amending subparagraph (B) to read as follows:
                    ``(A) construction, maintenance, renovation, and 
                improvement in classrooms, libraries, laboratories, and 
                other instructional facilities, including purchase or 
                rental of telecommunications technology equipment or 
                services, and the acquisition of real property adjacent 
                to the campus of the institution on which to construct 
                such facilities;'';
            (2) by striking ``and'' at the end of subparagraph (G);
            (3) by striking the period at the end of subparagraph (H) 
        and inserting ``; and''; and
            (4) by inserting after subparagraph (H) the following new 
        subparagraph:
                    ``(I) development or improvement of facilities for 
                Internet use or other distance learning academic 
                instruction capabilities.''.
    (b) Endowment Funds.--Section 317(c) is further amended by adding 
at the end the following new paragraph:
            ``(3) Endowment funds.--
                    ``(A) In general.--An Alaska Native or Native 
                Hawaiian-serving institution may use not more than 20 
                percent of the grant funds provided under this section 
                to establish or increase an endowment fund at the 
                institution.
                    ``(B) Matching requirement.--In order to be 
                eligible to use grant funds in accordance with 
                subparagraph (A), the institution shall provide to the 
                endowment fund from non-Federal funds an amount equal 
                to the Federal funds used in accordance with 
                subparagraph (A), for the establishment or increase of 
                the endowment fund.
                    ``(C) Applicability of other provisions.--The 
                provisions of part C regarding the establishment or 
                increase of an endowment fund, that the Secretary 
                determines are not inconsistent with this paragraph, 
                shall apply to funds used under subparagraph (A).''.
    (c) Application Process.--Section 317(d) is amended--
            (1) by adding at the end of paragraph (1) the following new 
        sentences: ``Each Alaska Native-serving institution and Native 
        Hawaiian-serving institution shall develop a 5-year plan for 
        improving the assistance provided to Alaska Native or Native 
        Hawaiian students. Such plan shall not be subject to approval 
        by the Secretary.''; and
            (2) in paragraph (2)--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) an assurance that the institution has 
                developed a 5-year plan for serving Alaska Native or 
                Native Hawaiian students;
                    ``(B) a list of activities and other information 
                that are consistent with the institution's 5-year plan; 
                and''.

SEC. 303. GRANTS TO PART B INSTITUTIONS.

    (a) Use of Funds.--
            (1) Facilities and equipment.--
                    (A) Undergraduate institutions.--Paragraph (2) of 
                section 323(a) (20 U.S.C. 1062(a)) is amended to read 
                as follows:
            ``(2) Construction, maintenance, renovation, and 
        improvement in classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services, and the 
        acquisition of real property adjacent to the campus of the 
        institution on which to construct such facilities.''.
                    (B) Graduate and professional schools.--Paragraph 
                (2) of section 326(c) is amended to read as follows:
            ``(2) construction, maintenance, renovation, and 
        improvement in classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services, and the 
        acquisition of real property adjacent to the campus of the 
        institution on which to construct such facilities;''.
            (2) Outreach and collaboration.--Paragraph (11) of section 
        323(a) is amended to read as follows:
            ``(11) Establishing community outreach programs and 
        collaborative partnerships between part B institutions and 
        local elementary or secondary schools. Such partnerships may 
        include mentoring, tutoring, or other instructional 
        opportunities that will boost student academic achievement and 
        assist elementary and secondary school students in developing 
        the academic skills and the interest to pursue postsecondary 
        education.''.
    (b) Technical Assistance.--Section 323 (20 U.S.C. 1062) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Technical Assistance.--
            ``(1) In general.--An institution may not use more than 2 
        percent of the grant funds provided under this part to secure 
        technical assistance services.
            ``(2) Technical assistance services.--Technical assistance 
        services may include assistance with enrollment management, 
        financial management, and strategic planning.
            ``(3) Report.--The institution shall report to the 
        Secretary on an annual basis, in such form as the Secretary 
        requires, on the use of funds under this subsection.''.
    (c) Distance Learning.--Section 323(a)(2) (20 U.S.C. 1062(a)(2)) is 
amended by inserting ``development or improvement of facilities for 
Internet use or other distance learning academic instruction 
capabilities and'' after ``including''.
    (d) Minimum Grants.--Section 324(d)(1) (20 U.S.C. 1063(d)(1)) is 
amended by inserting before the period at the end the following: ``, 
except that, if the amount appropriated to carry out this part for any 
fiscal year exceeds the amount required to provide to each institution 
an amount equal to the total amount received by such institution under 
subsections (a), (b), and (c) for the preceding fiscal year, then the 
amount of such excess appropriation shall first be applied to increase 
the minimum allotment under this subsection to $750,000''.
    (e) Eligible Graduate or Professional Schools.--
            (1) General authority.--Section 326(a)(1) (20 U.S.C. 
        1063b(a)(1)) is amended--
                    (A) by inserting ``(A)'' after ``subsection (e) 
                that'';
                    (B) by inserting before the period at the end the 
                following: ``, (B) is accredited by a nationally 
                recognized accrediting agency or association determined 
                by the Secretary to be a reliable authority as to the 
                quality of training offered, and (C) according to such 
                an agency or association, is in good standing''.
            (2) Eligible institutions.--Section 326(e)(1) (20 U.S.C. 
        1063b(e)(1)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (Q);
                    (B) by striking the period at the end of 
                subparagraph (R) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
                    ``(S) Alabama State University qualified graduate 
                program;
                    ``(T) Prairie View AM University qualified graduate 
                program; and
                    ``(U) Coppin State University qualified graduate 
                program.''.
            (3) Conforming amendment.--Section 326(e)(3) (20 U.S.C. 
        1063b(e)(3)) is amended--
                    (A) by striking ``1998'' and inserting ``2005''; 
                and
                    (B) by striking ``(Q) and (R)'' and inserting 
                ``(S), (T), and (U)''.
    (f) Professional or Graduate Institutions.--Section 326(f) (20 
U.S.C. 1063b(f)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``$26,600,000'' and inserting 
                ``$55,500,000''; and
                    (B) by striking ``(P)'' and inserting ``(R)'';
            (2) in paragraph (2)--
                    (A) by striking ``$26,600,000 but not in excess of 
                $28,600,000'' and inserting ``$55,500,000, but not in 
                excess of $58,500,000''; and
                    (B) by striking ``subparagraphs (Q) and (R)'' and 
                inserting ``subparagraphs (S), (T), and (U)''; and
            (3) in paragraph (3)--
                    (A) by striking ``$28,600,000'' and inserting 
                ``$58,500,000''; and
                    (B) by striking ``(R)'' and inserting ``(U)''.
    (g) Hold Harmless.--Section 326(g) (20 U.S.C. 1063b(g)) is amended 
by striking ``1998'' and inserting ``2005''.

SEC. 304. TECHNICAL AMENDMENTS.

    (a) Amendments.--Title III is further amended--
            (1) in section 311(c) (20 U.S.C. 1057(c))--
                    (A) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (2) in section 312(b)(1)(A) (20 U.S.C. 1058(b)(1)(A)), by 
        striking ``subsection (c)'' and inserting ``subsection (d)'';
            (3) in section 312(b)(1)(F) (20 U.S.C. 1058(b)(1)(F)), by 
        inserting ``which is'' before ``located'';
            (4) in section 312(b)(1) (20 U.S.C. 1058(b)(1)), by 
        redesignating subparagraphs (E) and (F) as subparagraphs (F) 
        and (G), respectively, and by inserting after subparagraph (D) 
        the following new subparagraph:
                    ``(E) which provides a program that is not less 
                than a 2-year educational program that is acceptable 
                for full credit toward a bachelor's degree;'';
            (5) in section 316(c)(2) (20 U.S.C. 1059c(c)(2))--
                    (A) by redesignating subparagraphs (G) through (M) 
                (as redesignated by section 301(b)(2) of this Act) as 
                subparagraphs (H) through (N), respectively;
                    (B) by inserting after subparagraph (F) the 
                following:
                    ``(G) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and, as appropriate, their parents;''; and
                    (C) in subparagraph (N), as redesignated by 
                subparagraph (A), by striking ``subparagraphs (A) 
                through (K)'' and inserting ``subparagraphs (A) through 
                (M)'';
            (6) in section 317(c)(2) (20 U.S.C. 1059d(c)(2))--
                    (A) in subparagraph (G), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (H), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(I) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and, as appropriate, their parents.'';
            (7) in section 323(a) (20 U.S.C. 1062(a))--
                    (A) by striking ``section 360(a)(2)'' and inserting 
                ``399(a)(2)'';
                    (B) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (C) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (8) in section 324(d)(2) (20 U.S.C. 1063(d)(2)), by 
        striking ``section 360(a)(2)(A)'' and inserting ``section 
        399(a)(2)(A)'';
            (9) in section 326(e)(1) (20 U.S.C. 1063b(e)(1)), in the 
        matter preceding subparagraph (A), by inserting a colon after 
        ``the following'';
            (10) in section 327(b) (20 U.S.C. 1063c(b)), by striking 
        ``initial'';
            (11) in section 342(5)(C) (20 U.S.C. 1066a(5)(C))--
                    (A) by inserting a comma after ``equipment'' the 
                first place it appears; and
                    (B) by striking ``technology,,'' and inserting 
                ``technology,'';
            (12) in section 343(e) (20 U.S.C. 1066b(e)), by inserting 
        after the subsection designation the following: ``Sale of 
        Qualified Bonds.--'';
            (13) in section 351(a) (20 U.S.C. 1067a(a)), by striking 
        ``of 1979'';
            (14) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by 
        striking ``subparagraph (E)'' and inserting ``subparagraph 
        (D)''; and
            (15) in section 396 (20 U.S.C. 1068e), by striking 
        ``section 360'' and inserting ``section 399''.
    (b) Repeal.--Section 1024 (20 U.S.C. 1135b-3), as transferred by 
section 301(a)(5) of the Higher Education Amendments of 1998 (Public 
Law 105-244; 112 Stat. 1636), is repealed.

SEC. 305. TITLE III AUTHORIZATIONS.

    Section 399(a) (20 U.S.C. 1068h(a)) is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2006'';
            (2) by striking ``4 succeeding fiscal years'' each place it 
        appears and inserting ``5 succeeding fiscal years'';
            (3) in paragraph (1)--
                    (A) by striking ``$10,000,000'' in subparagraph (B) 
                and inserting ``$23,800,000''; and
                    (B) by striking ``$5,000,000'' in subparagraph (C) 
                and inserting ``$11,900,000'';
            (4) in paragraph (2)--
                    (A) by striking ``$135,000,000'' in subparagraph 
                (A) and inserting ``$241,000,000''; and
                    (B) by striking ``$35,000,000'' in subparagraph (B) 
                and inserting ``$59,000,000''; and
            (5) in paragraph (4), by striking ``$110,000'' and 
        inserting ``$212,000''.

                      TITLE IV--STUDENT ASSISTANCE

                       PART A--GRANTS TO STUDENTS

SEC. 401. PELL GRANTS.

    (a) Extension of Authority.--Section 401(a) (20 U.S.C. 1070a(a)) is 
amended by striking ``2004'' and inserting ``2012''.
    (b) Direct Payment.--Section 401(a) (20 U.S.C. 1070a(a)) is further 
amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).
    (c) Maximum Grant Extension.--Paragraph (2)(A) of section 401(b) 
(20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows:
    ``(2)(A) The amount of the Federal Pell Grant for a student 
eligible under this part shall be $5,800 for academic years 2006-2007 
through 2012-2013, less an amount equal to the amount determined to be 
the expected family contribution with respect to that student for that 
year.''.
    (d) Tuition Sensitivity.--Section 401(b) is further amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4) through (8) as 
        paragraphs (3) through (7), respectively.
    (e) Multiple Grants.--Paragraph (5) of section 401(b) (as 
redesignated by subsection (d)(2)) is amended to read as follows:
            ``(5) Year-round pell grants.--
                    ``(A) In general.--The Secretary shall, for 
                students enrolled full time in a baccalaureate degree 
                program of study at an eligible institution, award such 
                students two Pell grants during a single award year to 
                permit such students to accelerate progress toward 
                their degree objectives by enrolling in academic 
                programs for 12 months rather than 9 months.
                    ``(B) Limitation.--The Secretary shall limit the 
                awarding of additional Pell grants under this paragraph 
                in a single award year to students attending 
                baccalaureate degree granting institutions that have a 
                graduation rate as reported by the Integrated 
                Postsecondary Education Data System for the 4 preceding 
                academic years of at least 30 percent.
                    ``(C) Evaluation.--The Secretary shall conduct an 
                evaluation of the program under this paragraph and 
                submit to the Congress an evaluation report no later 
                than October 1, 2011.
                    ``(D) Regulations required.--The Secretary shall 
                promulgate regulations implementing this paragraph.''.
    (f) Eligibility Period.--Section 401(c)(2) (20 U.S.C. 1070a(c)(2)) 
is amended by inserting ``, for not more than one academic year,'' 
after ``which are determined by the institution'' in the first 
sentence.
    (g) Pell Grants Plus: Achievement Grants for State Scholars 
Program.--
            (1) Amendment.--Subpart 1 of part A of title IV is amended 
        by inserting after section 401 (20 U.S.C. 1070a) the following 
        new section:

``SEC. 401A. PELL GRANTS PLUS: ACHIEVEMENT GRANTS FOR STATE SCHOLARS.

    ``(a) Grants Authorized.--From sums appropriated to carry out 
section 401, the Secretary shall establish a program to award Pell 
Grants Plus to students who--
            ``(1) have successfully completed--
                    ``(A) a rigorous high school program of study 
                established by a State or local educational agency in 
                consultation with a State coalition assisted by the 
                Center for State Scholars; or
                    ``(B) a high school program of study established by 
                a State or local educational agency that is as or more 
                rigourous than a program described in subparagraph (A);
            ``(2) are enrolled full-time in the first academic year of 
        undergraduate education, and have not been previously enrolled 
        in a program of undergraduate education; and
            ``(3) are eligible to receive Federal Pell Grants for the 
        year in which the grant is awarded.
    ``(b) Amount of Grants.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        amount of the grant awarded under this section to any student 
        for any award year shall be an amount equal to one-half the 
        amount of the Pell grant awarded to such student for such award 
        year.
            ``(2) Assistance not to exceed cost of attendance.--A grant 
        awarded under this section to any student, in combination with 
        the Federal Pell Grant assistance and other student financial 
        assistance available to such student, may not exceed the 
        student's cost of attendance.
    ``(c) Selection of Recipients.--
            ``(1) Procedures established by regulation.--The Secretary 
        shall establish by regulation procedures for the determination 
        of eligibility of students for the grants awarded under this 
        section. Such procedures shall include measures to ensure that 
        eligibility is determined in a timely and accurate manner 
        consistent with the requirements of section 482 and the 
        submission of the financial aid form required by section 483.
            ``(2) Required information.--Each eligible student desiring 
        an award under this section shall submit at such time and in 
        such manner such information as the Secretary may reasonably 
        require.
            ``(3) Continuation of grant requirements.--In order for a 
        student to continue to be eligible to receive an award under 
        this section for the second year of undergraduate education, 
        the eligible student must--
                    ``(A) maintain eligibility to receive a Federal 
                Pell Grant for that year;
                    ``(B) obtain a grade point average of at least 3.0 
                (or the equivalent as determined under regulations 
                prescribed by the Secretary) for the first year of 
                undergraduate education; and
                    ``(C) be enrolled full-time and fulfill the 
                requirements for satisfactory progress described in 
                section 484(c).
    ``(d) Evaluation and Reports.--The Secretary shall monitor the 
progress, retention, and completion rates of the students to whom 
awards are provided under this section. In doing so, the Secretary 
shall evaluate the impact of the Pell Grants Plus Program and report, 
not less than biennially, to the authorizing committees of the House of 
Representatives and the Senate.''.
            (2) Conforming amendment.--Chapter 3 of subpart 2 of part A 
        of title IV (20 U.S.C. 1070a-31 through 1070a-35) is repealed.

SEC. 402. TRIO PROGRAMS.

    (a) Duration of Grants.--
            (1) Amendment.--Section 402A(b)(2) (20 U.S.C. 1070a-
        11(b)(2)) is amended to read as follows:
            ``(2) Duration.--Grants or contracts awarded under this 
        chapter shall be awarded for a period of 5 years, except that--
                    ``(A) grants under section 402G shall be awarded 
                for a period of 2 years; and
                    ``(B) grants under section 402H shall be awarded 
                for a period determined by the Secretary.''.
            (2) Transition to synchronous grant periods.--
        Notwithstanding section 402A(b)(2) of the Higher Education Act 
        of 1965 (as in effect both prior to and after the amendment 
        made by paragraph (1) of this subsection), the Secretary of 
        Education may continue an award made before the date of 
        enactment of this Act under section 402B, 402C, 402D, 402E, or 
        402F of such Act as necessary to permit all the awards made 
        under such a section to expire at the end of the same fiscal 
        year, and thereafter to expire at the end of 5 years as 
        provided in the amendment made by paragraph (1) of this 
        subsection.
    (b) Minimum Grants.--Section 402A(b)(3) (20 U.S.C. 1070a-11(b)(3)) 
is amended to read as follows:
            ``(3) Minimum grants.--Unless the institution or agency 
        requests a smaller amount, individual grants for programs 
        authorized under this chapter shall be no less than $200,000, 
        except that individual grants for programs authorized under 
        section 402G shall be no less than $170,000.''.
    (c) Prior Experience; Novice Applicants.--Section 402A(c)(2) (20 
U.S.C. 1070a-11(c)(2)) is amended--
            (1) by striking ``In making grants'' and inserting ``(A) 
        Subject to subparagraph (B), in making grants''; and
            (2) by adding at the end the following new subparagraph:
            ``(B) From the amount available under subsection (f) for a 
        program under this chapter (other than a program under section 
        402G or 402H) for any fiscal year in which the Secretary 
        conducts a competition for the award of grants or contracts 
        under such program, the Secretary shall reserve 10 percent of 
        such available amount for purposes of funding applications from 
        novice applicants. If the Secretary determines that there are 
        an insufficient number of qualified novice applicants to 
        utilize the amount so reserved, the Secretary shall restore the 
        unutilized remainder of the amount reserved for use by 
        applicants qualifying under subparagraph (A).''.
    (d) Application Status.--Section 402A(c) (20 U.S.C. 1070a-11(c)) is 
amended by striking paragraph (7).
    (e) Documentation of Status.--Section 402A(e) (20 U.S.C. 1070a-
11(e)) is amended by striking ``(g)(2)'' each place it appears in 
paragraphs (1) and (2) and inserting ``(g)(4)''.
    (f) Authorization of Appropriations.--Section 402A(f) (20 U.S.C. 
1070a-11(f)) is amended by striking ``$700,000,000 for fiscal year 
1999, and such sums as may be necessary for each of the 4 succeeding 
fiscal years'' and inserting ``$836,500,000 for fiscal year 2006 and 
such sums as may be necessary for each of the 5 succeeding fiscal 
years''.
    (g) Definition.--Section 402A(g) (20 U.S.C. 1070a-11(g)) is 
amended--
            (1) in paragraph (3), by striking ``by reason of such 
        individual's age'';
            (2) by redesignating paragraphs (1) through (4) as 
        paragraphs (3) through (6), respectively; and
            (3) by inserting before paragraph (3), as redesignated, the 
        following:
            ``(1) Different campus.--The term `different campus' means 
        an institutional site that--
                    ``(A) is geographically apart from the main campus 
                of the institution;
                    ``(B) is permanent in nature; and
                    ``(C) offers courses in educational programs 
                leading to a degree, certificate, or other recognized 
                educational credential.
            ``(2) Different population.--The term `different 
        population' means a group of individuals, with respect to whom 
        an entity seeks to serve through an application for funding 
        under this chapter, that--
                    ``(A) is separate and distinct from any other 
                population that the entity seeks to serve through an 
                application for funding under this chapter; or
                    ``(B) while sharing some of the same needs as 
                another population that the entity seeks to serve 
                through an application for funding under this chapter, 
                has distinct needs for specialized services.''.
    (h) Education and Counseling Services.--Chapter 1 of subpart 2 of 
part A of title IV is further amended--
            (1) in section 402B(b) (20 U.S.C. 1070a-12(b))--
                    (A) by redesignating paragraphs (3) through (10) as 
                paragraphs (4) through (11), respectively;
                    (B) by inserting after paragraph (2) the following:
            ``(3) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)''.
            (2) in section 402C (20 U.S.C. 1070a-13)--
                    (A) in subsection (b)--
                            (i) by redesignating paragraphs (2) through 
                        (12) as paragraphs (3) through (13), 
                        respectively;
                            (ii) by inserting after paragraph (1) the 
                        following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                            (iii) in paragraph (13), as redesignated by 
                        clause (i), by striking ``paragraphs (1) 
                        through (11)'' and inserting ``paragraphs (1) 
                        through (12)''; and
                    (B) in subsection (e), by striking ``subsection 
                (b)(10)'' and inserting ``subsection (b)(11)'';
            (3) in section 402D(b) (20 U.S.C. 1070a-14(b))--
                    (A) by redesignating paragraphs (2) through (10) as 
                paragraphs (3) through (11), respectively;
                    (B) by inserting after paragraph (1) the following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)'';
            (4) in section 402E(b) (20 U.S.C. 1070a-15(b))--
                    (A) by redesignating paragraphs (7) and (8) as 
                paragraphs (8) and (9), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;'';
            (5) in section 402F(b) (20 U.S.C. 1070a-16(b))--
                    (A) by redesignating paragraphs (4) through (10) as 
                paragraphs (5) through (11), respectively;
                    (B) by inserting after paragraph (3) the following:
            ``(4) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)''.
    (i) Maximum Stipends.--Section 402C(e) (20 U.S.C. 1070a-13(e)) is 
amended--
            (1) by striking ``$60'' and inserting ``$100''; and
            (2) by striking ``$40'' and inserting ``$60''.
    (j) Student Support Services.--Section 402D(d)(6) (20 U.S.C. 1070a-
14(d)(6)) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) working with other entities that serve low-
                income working adults to increase access to and 
                successful progress in postsecondary education by low-
                income working adults seeking their first postsecondary 
                degree or certificate.''.
    (k) Postbaccalaureate Achievement Maximum Stipends.--Section 
402E(e)(1) (20 U.S.C. 1070a-15(e)(1)) is amended by striking ``$2,800'' 
and inserting ``$5,000''.
    (l) Educational Opportunity Centers: Application Approval.--Section 
402F(c) (20 U.S.C. 1070a-16(c)) is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) consider the extent to which the proposed project 
        would provide services to low-income working adults in the 
        region to be served, in order to increase access to 
        postsecondary education by low-income working adults.''.

SEC. 403. GEARUP.

    (a) Duration of Awards.--Section 404A(b) (20 U.S.C. 1070a-21(b)) is 
amended--
            (1) in paragraph (2)(B), by striking ``Higher Education 
        Amendments of 1998'' and inserting ``College Access and 
        Opportunity Act of 2005''; and
            (2) by adding at the end thereof the following new 
        paragraph:
            ``(3) Duration.--An award made by the Secretary under this 
        chapter to an eligible entity described in paragraph (1) or (2) 
        of subsection (c) shall be for the period of 6 years.''.
    (b) Continuing Eligibility.--Section 404A (20 U.S.C. 1070a-21) is 
amended by adding at the end the following new subsection:
    ``(d) Continuing Eligibility.--An eligible entity shall not cease 
to be an eligible entity upon the expiration of any grant under this 
chapter (including a continuation award).''.
    (c) Continuity of Service.--
            (1) Cohort approach.--Section 404B(g)(1)(B) (20 U.S.C. 
        1070a-22(g)(1)(B)) is amended by inserting ``and provide the 
        option of continued services through the student's first year 
        of attendance at an eligible institution of higher education'' 
        after ``grade level''.
            (2) Early intervention.--Section 404D (20 U.S.C. 1070a-24) 
        is amended--
                    (A) in subsection (b)(2)(A), by inserting ``and 
                students in the first year of attendance at an eligible 
                institution of higher education'' after ``grade 12''; 
                and
                    (B) in subsection (c), by inserting ``and may 
                consider students in their first year of attendance at 
                an eligible institution who is eligible'' after ``grade 
                12''.
    (d) Coordination.--Section 404C(a)(2) (20 U.S.C. 1070a-23(a)(2)) is 
amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) describe activities for coordinating, 
                complementing, and enhancing services under this 
                chapter provided by other eligible entities in the 
                State; and''.
    (e) Education and Counseling Services.--Section 404D(b)(2)(A)(ii) 
(20 U.S.C. 1070a-24(b)(2)(A)(ii)) is amended by striking ``and academic 
counseling'' and inserting ``academic counseling, and financial 
literacy and economic literacy education or counseling''.
    (f) Reauthorization.--Section 404H (20 U.S.C. 1070a-28) is amended 
by striking ``$200,000,000 for fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``$306,500,000 for fiscal year 2006 and such sums as may be necessary 
for each of the 5 succeeding fiscal years''.

SEC. 404. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

    (a) Authorization of Appropriations.--Section 413A(b)(1) (20 U.S.C. 
1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year 1999 
and such sums as may be necessary for the 4 succeeding fiscal years'' 
and inserting ``$779,000,000 for fiscal year 2006 and such sums as may 
be necessary for the 5 succeeding fiscal years''.
    (b) Phaseout of Allocation Based on Previous Allocations.--
            (1) Amendment.--Subsection (a) of section 413D (20 U.S.C. 
        1070b-3(a)) is amended to read as follows:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) Base guarantee.--From the amount appropriated 
        pursuant to section 413A(b) for each fiscal year after fiscal 
        year 2007, the Secretary shall, subject to paragraph (2), first 
        allocate to each eligible institution an amount equal to the 
        following percentage of the amount such institution received 
        under subsection (a) of this section for fiscal year 2007 (as 
        such subsection was in effect with respect to allocations for 
        such fiscal year):
                    ``(A) 80 percent for fiscal years 2008 and 2009;
                    ``(B) 60 percent for fiscal years 2010 and 2011;
                    ``(C) 40 percent for fiscal years 2012 and 2013;
                    ``(D) 20 percent for fiscal years 2014 and 2015; 
                and
                    ``(E) 0 percent for fiscal year 2016 and any 
                succeeding fiscal year.
            ``(2) Ratable reductions for insufficient appropriations.--
                    ``(A) Reduction of base guarantee.--If the amount 
                appropriated for any fiscal year is less than the 
                amount required to be allocated to all institutions 
                under this subsection, then the amount of the 
                allocation to each such institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations allocation.--If 
                additional amounts are appropriated for any such fiscal 
                year, such reduced amounts shall be increased on the 
                same basis as they were reduced (until the amount 
                allocated equals the amount required to be allocated 
                under this subsection).
            ``(3) Additional allocations for certain institutions.----
                    ``(A) Allocations permitted.--Notwithstanding any 
                other provision of this section, the Secretary may 
                allocate an amount equal to not more than 10 percent of 
                the amount by which the amount appropriated in any 
                fiscal year to carry out this subpart exceeds 
                $700,000,000 among eligible institutions described in 
                subparagraph (B).
                    ``(B) Eligible institutions.--For purposes of 
                subparagraph (A)--
                            ``(i) an eligible institution that is a 4-
                        year institution may receive an allocation 
                        under subparagraph (A) if more than 50 percent 
                        of the students who are degree-seeking Pell 
                        Grant recipients attending such institution 
                        graduate within 4 calendar years of the first 
                        day of enrollment; and
                            ``(ii) an eligible institution that is a 2-
                        year institution may receive an allocation 
                        under subparagraph (A) if more than 50 percent 
                        of the students who are degree-seeking Pell 
                        Grant recipients attending such institution 
                        graduate within 2 calendar years of the first 
                        day of enrollment.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any amounts appropriated under 
        section 413A(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1070b(b)) for fiscal year 2008 or any succeeding fiscal year.
    (c) Books and Supplies.--Section 413D(c)(3)(D) (20 U.S.C. 1070-
3(c)(3)(D)) is amended by striking ``$450'' and inserting ``$600''.

SEC. 405. LEAP.

    Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 406. HEP/CAMP PROGRAM.

    Section 418A (20 U.S.C. 1070d-2) is amended--
            (1) in subsection (b)(1)(B)(i), by inserting ``, or whose 
        spouse'' after ``themselves'';
            (2) in subsection (b)(3)(B), by inserting ``, including 
        preparation for college entrance exams,'' after ``program'';
            (3) in subsection (b)(8), by inserting ``, including child 
        care and transportation'' after ``supportive services'';
            (4) by striking ``and'' at the end of subsection (b)(7), by 
        striking the period at the end of subsection (b)(8) and 
        inserting ``; and'', and by adding at the end of subsection (b) 
        the following new paragraph:
            ``(9) follow-up activity and reporting requirements, except 
        that not more than 2 percent of the funds provided under this 
        section may be used for such purposes.'';
            (5) in subsection (c)(1)(A), by inserting ``, or whose 
        spouse'' after ``themselves'';
            (6) in subsection (c)(1)(B), by striking clause (i) and 
        inserting the following:
                    ``(i) personal, academic, career, and economic 
                education or personal finance counseling as an ongoing 
                part of the program;'';
            (7) in subsection (c)(2)(B), by inserting ``(including 
        mentoring and guidance of such students)'' after ``services'';
            (8) in subsection (c)(2), by striking ``and'' at the end of 
        subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``; and'', and by adding at the 
        end of subsection (c)(2) the following new subparagraph:
                    ``(C) for students in any program that does not 
                award a bachelor's degree, encouraging the transfer to, 
                and persistence in, such a program, and monitoring the 
                rate of such transfer, persistence, and completion.'';
            (9) in subsection (e), by striking ``section 402A(c)(1)'' 
        and inserting ``section 402A(c)(2)''; and
            (10) in subsection (h)--
                    (A) in paragraph (1), by striking ``$15,000,000 for 
                fiscal year 1999 and such sums as may be necessary for 
                each of the 4 succeeding fiscal years'' and inserting 
                ``$24,000,000 for fiscal year 2006 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''; and
                    (B) in paragraph (2), by striking ``$5,000,000 for 
                fiscal year 1999 and such sums as may be necessary for 
                each of the 4 succeeding fiscal years'' and inserting 
                ``$16,000,000 for fiscal year 2006 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''.

SEC. 407. BYRD SCHOLARSHIP.

    Section 419K (20 U.S.C. 1070d-41) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 408. CHILD CARE ACCESS.

     Section 419N(g) (20 U.S.C. 1070e(g)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 409. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

    (a) Repeal.--Subpart 8 of part A of title IV (20 U.S.C. 1070f--
1070f-6) is repealed.
    (b) Conforming Amendment.--Section 400(b) (20 U.S.C. 1070(b)) is 
amended by striking ``through 8'' and inserting ``through 7''.

SEC. 410. TECHNICAL AMENDMENTS.

    Part A of title IV is further amended as follows:
            (1) Section 419C(b)(1) (20 U.S.C. 1070d-33(b)(1)) is 
        amended by inserting ``and'' after the semicolon at the end 
        thereof.
            (2) Section 419D(d) (20 U.S.C. 1070d-34(d)) is amended by 
        striking ``Public Law 95-1134'' and inserting ``Public Law 95-
        134''.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

SEC. 421. REAUTHORIZATION OF FEDERAL FAMILY EDUCATION LOAN PROGRAM.

    (a) Authorization of Appropriations.--Section 421(b)(5) (20 U.S.C. 
1071(b)(5)) is amended by striking ``administrative cost allowance'' 
and inserting ``loan processing and issuance fee''.
    (b) Extension of Authority.--
            (1) Federal insurance limitations.--Section 424(a) (20 
        U.S.C. 1074(a)) is amended--
                    (A) by striking ``2004'' and inserting ``2012''; 
                and
                    (B) by striking ``2008'' and inserting ``2016''.
            (2) Guaranteed loans.--Section 428(a)(5) (20 U.S.C. 
        1078(a)(5)) is amended--
                    (A) by striking ``2004'' and inserting ``2012''; 
                and
                    (B) by striking ``2008'' and inserting ``2016''.
            (3) Consolidation loans.--Section 428C(e) (20 U.S.C. 1078-
        3(e)) is amended by striking ``2004'' and inserting ``2012''.

SEC. 422. LOAN LIMITS.

    (a) Federal Insurance Limits.--Section 425(a)(1)(A) (20 U.S.C. 
1075(a)(1)(A)) is amended--
            (1) in clause (i)(I), by striking ``$2,625'' and inserting 
        ``$3,500''; and
            (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
        ``$4,500''.
    (b) Guarantee Limits.--Section 428(b)(1)(A) (20 U.S.C. 
1078(b)(1)(A)) is amended--
            (1) in clause (i)(I), by striking ``$2,625'' and inserting 
        ``$3,500''; and
            (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
        ``$4,500''.
    (c) Counting of Consolidation Loans Against Limits.--Section 
428C(a)(3)(B) (20 U.S.C. 1078-3(a)(3)(B)) is amended by adding at the 
end the following new clause:
            ``(ii) Loans made under this section shall, to the extent 
        used to discharge loans made under this title, be counted 
        against the applicable limitations on aggregate indebtedness 
        contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, 
        and 464(a)(2)(B).''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to any loan made, insured, or guaranteed under part 
B or part D of title IV of the Higher Education Act of 1965 for which 
the first disbursement of principal is made on or after July 1, 2007.

SEC. 423. INTEREST RATES AND SPECIAL ALLOWANCES.

    (a) FFEL Interest Rate.--Section 427A (20 U.S.C. 1077a(k)) is 
amended--
            (1) in subsection (k)--
                    (A) by striking ``, and Before July 1, 2006'' in 
                the heading of such subsection; and
                    (B) by striking ``, and before July 1, 2006,'' each 
                place it appears other than paragraph (4);
            (2) by striking subsection (l); and
            (3) by redesignating subsections (m) and (n) as subsections 
        (l) and (m), respectively.
    (b) Direct Loan Interest Rates.--Section 455(b) (20 U.S.C. 
1087e(b)) is amended--
            (1) in paragraph (6)--
                    (A) by striking ``, and before july 1, 2006'' in 
                the heading of such paragraph; and
                    (B) by striking ``, and before July 1, 2006,'' each 
                place it appears other than subparagraph (D);
            (2) by striking paragraph (7); and
            (3) by redesignating paragraphs (8) and (9) as paragraphs 
        (7) and (8), respectively.
    (c) Consolidation Loans.--
            (1) FFEL consolidation loans.--Section 427A(k) (20 U.S.C. 
        1077a(k)) is further amended--
                    (A) by redesignating paragraph (5) as paragraph 
                (6); and
                    (B) by inserting after paragraph (4) the following 
                new paragraph:
            ``(5) Variable rate for consolidation loans.--With respect 
        to any consolidation loan under section 428C for which the 
        application is received by an eligible lender on or after July 
        1, 2006, the applicable rate of interest shall, during any 12-
        month period beginning on July 1 and ending on June 30, be 
        determined on the preceding June 1 and be equal to--
                    ``(A) the bond equivalent rate of 91-day Treasury 
                bills auctioned at the final auction held prior to such 
                June 1; plus
                    ``(B) 2.3 percent,
        except that such rate shall not exceed 8.25 percent, and the 
        rate determined under paragraph (3) shall apply in lieu of the 
        rate determined under this paragraph in the case of any such 
        consolidation loan that is used to repay loans each of which 
        was made under section 428B or was a Federal Direct PLUS Loan 
        (or both).''.
            (2) Direct consolidation loans.--Section 455(b)(6) (20 
        U.S.C. 1087e(b)(6)) is further amended--
                    (A) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (B) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) Variable rate for consolidation loans.--With 
                respect to any Federal Direct Consolidation loan for 
                which the application is received on or after July 1, 
                2006, the applicable rate of interest shall, during any 
                12-month period beginning on July 1 and ending on June 
                30, be determined on the preceding June 1 and be equal 
                to--
                            ``(i) the bond equivalent rate of 91-day 
                        Treasury bills auctioned at the final auction 
                        held prior to such June 1; plus
                            ``(ii) 2.3 percent,
                except that such rate shall not exceed 8.25 percent, 
                and the rate determined under subparagraph (C) shall 
                apply in lieu of the rate determined under this 
                subparagraph in the case of any such consolidation loan 
                that is used to repay loans each of which was made 
                under section 428B or was a Federal Direct PLUS Loan 
                (or both).''.
    (d) Consolidation Loan Conforming Amendment.--Section 
428C(c)(1)(A)(ii) (20 U.S.C. 1078-3(c)(1)(A)(ii)) is amended by 
striking ``section 427A(l)(3)'' and inserting ``section 427A(k)(5)''.
    (e) Conforming Amendments for Special Allowances.--
            (1) Amendment.--Subparagraph (I) of section 438(b)(2) (20 
        U.S.C. 1087-1(b)(2)) is amended--
                    (A) by striking clause (ii) and inserting the 
                following:
                            ``(ii) In school and grace period.--In the 
                        case of any loan for which the first 
                        disbursement is made on or after January 1, 
                        2000, and for which the applicable interest 
                        rate is described in section 427A(k)(2), clause 
                        (i)(III) of this subparagraph shall be applied 
                        by substituting `1.74 percent' for `2.34 
                        percent'.'';
                    (B) in clause (iii)--
                            (i) by striking ``or (l)(2)''; and
                            (ii) by striking ``, subject to clause (v) 
                        of this subparagraph'';
                    (C) in clause (iv)--
                            (i) by striking ``or (l)(3)'' and inserting 
                        ``or (k)(5)''; and
                            (ii) by striking ``, subject to clause (vi) 
                        of this subparagraph''; and
                    (D) by striking clauses (v), (vi), and (vii) and 
                inserting the following:
                            ``(v) Recapture of excess interest.--
                                    ``(I) Excess credited.--With 
                                respect to a loan on which the 
                                applicable interest rate is determined 
                                under section 427A(k) and for which the 
                                first disbursement of principal is made 
                                on or after July 1, 2006, if the 
                                applicable interest rate for any 3-
                                month period exceeds the special 
                                allowance rate applicable to such loan 
                                under this subparagraph for such 
                                period, then an adjustment shall be 
                                made by calculating the excess interest 
                                in the amount computed under subclause 
                                (II) of this clause, and by crediting 
                                the excess interest to the Government 
                                not less often than annually.
                                    ``(II) Calculation of excess.--The 
                                amount of any adjustment of interest on 
                                a loan to be made under this subsection 
                                for any quarter shall be equal to--
                                            ``(aa) the applicable 
                                        interest rate minus the special 
                                        allowance rate determined under 
                                        this subparagraph; multiplied 
                                        by
                                            ``(bb) the average daily 
                                        principal balance of the loan 
                                        (not including unearned 
                                        interest added to principal) 
                                        during such calendar quarter; 
                                        divided by
                                            ``(cc) four.''.
            (2) Effective date.--The amendments made by this subsection 
        shall not apply with respect to any special allowance payment 
        made under section 438 of the Higher Education Act of 1965 (20 
        U.S.C 1087-1) before July 1, 2006.

SEC. 424. ADDITIONAL LOAN TERMS AND CONDITIONS.

    (a) Disbursement.--Section 428(b)(1)(N) (20 U.S.C. 
1078(b)(1)(N)(ii)) is amended--
            (1) by striking ``or'' at the end of clause (i); and
            (2) by striking clause (ii) and inserting the following:
                            ``(ii) in the case of a student who is 
                        studying outside the United States in a program 
                        of study abroad that is approved for credit by 
                        the home institution at which such student is 
                        enrolled, are, at the request of the student, 
                        disbursed directly to the student by the means 
                        described in clause (i), unless such student 
                        requests that the check be endorsed, or the 
                        funds transfer authorized, pursuant to an 
                        authorized power-of-attorney; or
                            ``(iii) in the case of a student who is 
                        studying outside the United States in a program 
                        of study at an eligible foreign institution, 
                        are, at the request of the foreign institution, 
                        disbursed directly to the student by the means 
                        described in clause (i).''.
    (b) Repayment Plans.--
            (1) FFEL loans.--Section 428(b)(9)(A) (20 U.S.C. 
        1078(b)(9)(A)) is amended--
                    (A) by inserting before the semicolon at the end of 
                clause (ii) the following: ``, and the Secretary may 
                not restrict the proportions or ratios by which such 
                payments may be graduated with the informed agreement 
                of the borrower'';
                    (B) by striking ``and'' at the end of clause (iii);
                    (C) by redesignating clause (iv) as clause (v); and
                    (D) by inserting after clause (iii) the following 
                new clause:
                            ``(iv) a delayed repayment plan under which 
                        the borrower makes scheduled payments for not 
                        more than 2 years that are annually not less 
                        than the amount of interest due or $600, 
                        whichever is greater, and then makes payments 
                        in accordance with clause (i), (ii), or (iii); 
                        and''.
            (2) Direct loans.--Section 455(d)(1) (20 U.S.C. 
        1087e(d)(1)) is amended--
                    (A) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (B) by striking subparagraphs (A), (B), and (C) and 
                inserting the following:
                    ``(A) a standard repayment plan, consistent with 
                subsection (a)(1) of this section and with section 
                428(b)(9)(A)(i);
                    ``(B) a graduated repayment plan, consistent with 
                section 428(b)(9)(A)(ii);
                    ``(C) an extended repayment plan, consistent with 
                section 428(b)(9)(A)(iv), except that the borrower 
                shall annually repay a minimum amount determined by the 
                Secretary in accordance with section 428(b)(1)(L);
                    ``(D) a delayed repayment plan under which the 
                borrower makes scheduled payments for not more than 2 
                years that are annually not less than the amount of 
                interest due or $600, whichever is greater, and then 
                makes payments in accordance with subparagraph (A), 
                (B), or (C); and''.
    (c) Origination Fees.--
            (1) Amendments.--Paragraph (2) of section 438(c) (20 U.S.C. 
        1087-1(c)) is amended--
                    (A) by striking the designating and heading of such 
                paragraph and inserting the following:
            ``(2) Amount of origination fees.--
                    ``(A) In general.--''; and
                    (B) by adding at the end the following new 
                subparagraphs:
                    ``(B) Subsequent reductions.--Subparagraph (A) 
                shall be applied to loans made under this part other 
                than loans made under sections 428C and 439(o)--
                            ``(i) by substituting `2.0 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2006, and before July 1, 2008;
                            ``(ii) by substituting `1.5 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2008, and before July 1, 2010; 
                        and
                            ``(iii) by substituting `1.0 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2010.''.
            (2) Conforming amendment to direct loan program.--
        Subsection (c) of section 455 (20 U.S.C. 1087e(c)) is amended 
        to read as follows:
    ``(c) Loan Fee.--
            ``(1) In general.--The Secretary shall charge the borrower 
        of a loan made under this part an origination fee of 4.0 
        percent of the principal amount of loan.
            ``(2) Subsequent reductions.--Paragraph (1) shall be 
        applied to loans made under this part other than consolidation 
        loans and PLUS loans--
                    ``(A) by substituting `2.0 percent' for `4.0 
                percent' with respect to loans for which the first 
                disbursement of principal is made on or after July 1, 
                2006, and before July 1, 2008;
                    ``(B) by substituting `1.5 percent' for `4.0 
                percent' with respect to loans for which the first 
                disbursement of principal is made on or after July 1, 
                2008, and before July 1, 2010; and
                    ``(C) by substituting `1.0 percent' for `4.0 
                percent' with respect to loans for which the first 
                disbursement of principal is made on or after July 1, 
                2010.''.

SEC. 425. CONSOLIDATION LOAN CHANGES.

    (a) Amendments.--Section 428C (20 U.S.C. 1078-3) is amended--
            (1) in subsection (a)(3), by striking subparagraph (C); and
            (2) in subsection (b)(1)--
                    (A) by striking everything after ``under this 
                section'' the first place it appears in subparagraph 
                (A) and inserting the following: ``and that, if all the 
                borrower's loans under this part are held by a single 
                holder, the borrower has notified such holder that the 
                borrower is seeking to obtain a consolidation loan 
                under this section;'';
                    (B) by striking ``(i) which'' and all that follows 
                through ``and (ii)'' in subparagraph (C);
                    (C) by striking ``and'' at the end of subparagraph 
                (E);
                    (D) by redesignating subparagraph (F) as 
                subparagraph (G); and
                    (E) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) that the lender of the consolidation loan 
                shall, upon application for such loan, provide the 
                borrower with a clear and conspicuous notice of at 
                least the following information:
                            ``(i) the effects of consolidation on total 
                        interest to be paid, fees to be paid, and 
                        length of repayment;
                            ``(ii) the effects of consolidation on a 
                        borrower's underlying loan benefits, including 
                        loan forgiveness, cancellation, and deferment;
                            ``(iii) the ability for the borrower to 
                        prepay the loan, pay on a shorter schedule, and 
                        to change repayment plans, and that borrower 
                        benefit programs may vary among different loan 
                        holders;
                            ``(iv) the tax benefits for which borrowers 
                        may be eligible;
                            ``(v) the consequences of default; and
                            ``(vi) that by making the application the 
                        applicant is not obligated to agree to take the 
                        consolidation loan; and''.
    (b) Effective Date for Single Holder Amendment.--The amendment made 
by subsection (a)(2)(A) shall apply with respect to any loan made under 
section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) for 
which the application is received by an eligible lender on or after 
July 1, 2006.
    (c) Conforming Amendments to Direct Loan Program.--
            (1) Parallel terms, conditions, benefits, and amounts.--
        Section 455(a)(1) (20 U.S.C. 1087e(a)(1)) is amended by 
        inserting ``428C,'' after ``428B,''.
            (2) Disclosure.--Section 455(g) (20 U.S.C. 1087e(g)) is 
        amended by adding at the end the following new sentence: ``The 
        Secretary, upon application for such a loan, shall comply with 
        the requirements applicable to a lender under 428C(b)(1)(F).''

SEC. 426. UNSUBSIDIZED STAFFORD LOANS.

    (a) Amendment.--Section 428H(d)(2)(C) (20 U.S.C. 1078-8(d)(2)(C)) 
is amended by striking ``$10,000'' and inserting ``$12,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to loans for which the first disbursement of principal is made on 
or after July 1, 2007.

SEC. 427. ELIMINATION OF TERMINATION DATES FROM TAXPAYER-TEACHER 
              PROTECTION ACT OF 2004.

    (a) Extension of Limitations on Special Allowance for Loans From 
the Proceeds of Tax Exempt Issues.--Section 438(b)(2)(B) (20 U.S.C. 
1087-1(b)(2)(B)) is amended--
            (1) in clause (iv), by striking ``and before January 1, 
        2006,''; and
            (2) in clause (v)(II)--
                    (A) by striking ``and before January 1, 2006,'' 
                each place it appears in divisions (aa) and (bb); and
                    (B) by striking ``, and before January 1, 2006'' in 
                division (cc).
    (b) Elimination of Effective Date Limitation on Higher Teacher Loan 
Forgiveness Benefits.--Section 3(b) of the Taxpayer-Teacher Protection 
Act of 2004 is amended by striking paragraph (3).

SEC. 428. ADDITIONAL ADMINISTRATIVE PROVISIONS.

    (a) Treatment of Exempt Claims.--
            (1) Insurance coverage.--Section 428(b)(1)(G) (20 U.S.C. 
        1078(b)(1)(G)) is amended by inserting before the semicolon at 
        the end the following: ``and 100 percent of the unpaid 
        principal amount of exempt claims as defined in subsection 
        (c)(1)(G)''.
            (2) Treatment.--Section 428(c)(1) (20 U.S.C. 1078(c)(1)) is 
        amended--
                    (A) by redesignating subparagraph (G) as 
                subparagraph (H), and moving such subparagraph 2 em 
                spaces to the left; and
                    (B) by inserting after subparagraph (F) the 
                following new subparagraph:
            ``(G)(i) Notwithstanding any other provisions of this 
        section, in the case of exempt claims, the Secretary shall 
        apply the provisions of--
                    ``(I) the fourth sentence of subparagraph (A) by 
                substituting `100 percent' for `95 percent';
                    ``(II) subparagraph (B)(i) by substituting `100 
                percent' for `85 percent'; and
                    ``(III) subparagraph (B)(ii) by substituting `100 
                percent' for `75 percent'.
            ``(ii) For purposes of clause (i) of this subparagraph, the 
        term `exempt claims' means claims with respect to loans for 
        which it is determined that the borrower (or the student on 
        whose behalf a parent has borrowed), without the lender's or 
        the institution's knowledge at the time the loan was made, 
        provided false or erroneous information or took actions that 
        caused the borrower or the student to be ineligible for all or 
        a portion of the loan or for interest benefits thereon.''.
    (b) Documentation of Forbearance Agreements.--Section 428(c) (20 
U.S.C. 1078(c)) is further amended--
            (1) in paragraph (3)(A)(i), by striking ``in writing''; and
            (2) by adding at the end the following new paragraph:
            ``(10) Documentation of forbearance agreements.--For the 
        purposes of paragraph (3), the terms of forbearance agreed to 
        by the parties shall be documented by confirming the agreement 
        of the borrower by notice to the borrower from the lender, and 
        by recording the terms in the borrower's file.''.
    (c) Voluntary Flexible Agreements.--Section 428A (20 U.S.C. 1078-1) 
is amended--
            (1) in subsection (a)(1)(B), by striking ``unless the 
        Secretary'' and all that follows through ``designated 
        guarantor'';
            (2) by striking paragraph (2) of subsection (a);
            (3) in paragraph (4)(B) of such subsection, by striking 
        ``and any waivers provided to other guaranty agencies under 
        paragraph (2)'';
            (4) by redesignating paragraphs (3) and (4) of subsection 
        (a) as paragraphs (2) and (3), respectively; and
            (5) by striking paragraph (3) of subsection (c) and 
        inserting the following:
            ``(3) Notice to interested parties.--Once the Secretary 
        reaches a tentative agreement in principle under this section, 
        the Secretary shall publish in the Federal Register a notice 
        that invites interested parties to comment on the proposed 
        agreement. The notice shall state how to obtain a copy of the 
        tentative agreement in principle and shall give interested 
        parties no less than 30 days to provide comments. The Secretary 
        may consider such comments prior to providing the notices 
        pursuant to paragraph (2).''.
    (d) Default Reduction Program.--Section 428F(a)(1) (20 U.S.C. 1078-
6(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``consecutive payments 
        for 12 months'' and inserting ``9 payments made within 20 days 
        of the due date during 10 consecutive months''; and
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C)(i) A guaranty agency may charge and retain 
                collection costs in an amount not to exceed 18.5 
                percent of the outstanding principal and interest at 
                the time of sale of a loan rehabilitated under 
                subparagraph (A).
                    ``(ii) Notwithstanding clause (i), on and after 
                July 1, 2006, a guaranty agency that rehabilitates a 
                defaulted loan by making a consolidation loan to a 
                borrower under section 428C(a)(3)(A)(ii)(III) may not 
                charge and retain collection costs in an amount in 
                excess of 10 percent of the outstanding principal and 
                interest of the defaulted loans being consolidated.
                    ``(iii) For any year beginning on or after July 1, 
                2009, the total principal and interest of loans that a 
                guaranty agency rehabilitates by making consolidation 
                loans to borrowers under such section shall not exceed 
                45 percent of the total loans rehabilitated under 
                subparagraph (A).''.
    (e) Financial and Economic Literacy.--
            (1) Default reduction program.--Section 428F is further 
        amended by adding at the end the following:
    ``(c) Financial and Economic Literacy.--Where appropriate, each 
program described under subsection (b) shall include making available 
financial and economic education materials for the borrower.''.
            (2) Program assistance for borrowers.--Section 432(k)(1) 
        (20 U.S.C. 1082(k)(1)) is amended by striking ``and offering'' 
        and all that follows through the period and inserting ``, 
        offering loan repayment matching provisions as part of employee 
        benefit packages, and providing employees with financial and 
        economic education and counseling.''.
    (f) Credit Bureau Organization Agreements.--Section 430A(a) (20 
U.S.C. 1080a(a)) is amended by striking ``agreements with credit bureau 
organizations'' and inserting ``an agreement with each national credit 
bureau organization (as described in section 603(p) of the Fair Credit 
Reporting Act)''.
    (g) Uniform Administrative and Claims Procedure.--Section 
432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) is amended by inserting ``and 
anticipated graduation date'' after ``status change''.
    (h) Default Reduction Management.--Section 432 is further amended--
            (1) by striking subsection (n); and
            (2) by redesignating subsections (o) and (p) as subsections 
        (n) and (o), respectively.
    (i) School as Lender.--Section 435(d)(2) (20 U.S.C. 1085(d)(2)) is 
amended by striking subparagraphs (C) through (F) and the material 
following subparagraph (F) and inserting the following:
                    ``(C) shall not make a loan, other than a loan made 
                under section 428 or 428H to a graduate or professional 
                student, unless the borrower has previously received a 
                loan from the school, and shall not make a loan to a 
                borrower who is not enrolled at that institution;
                    ``(D) shall not have a cohort default rate (as 
                defined in section 435(m)) greater than 15 percent; and
                    ``(E) shall use the proceeds from special allowance 
                payments and interest payments from borrowers, and any 
                proceeds from the sale or other disposition of loans, 
                for need-based grant programs, except for reasonable 
                reimbursement for direct administrative expenses.''.
    (j) Disability Determinations.--Section 437(a) (20 U.S.C. 1087(a)) 
is amended by adding at the end the following new sentence: ``In making 
such determination of permanent and total disability, the Secretary 
shall provide that a borrower who has been certified as permanently and 
totally disabled by the Department of Veterans Affairs or the Social 
Security Administration shall not be required to present further 
documentation for purposes of this title.''.
    (k) Treatment of Falsely Certified Borrowers.--Section 437(c)(1) 
(20 U.S.C. 1087(c)(1)) is amended by inserting ``or parent's 
eligibility'' after ``such student's eligibility''.
    (l) Perfection of Security Interests.--Section 439(d) (20 U.S.C. 
1087-2(d)) is amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively.
    (m) Additional Technical Amendments.--
            (1) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is 
        amended--
                    (A) by striking ``and'' at the end of subclause 
                (II) of clause (i); and
                    (B) by moving the margin of clause (iii) two ems to 
                the left.
            (2) Section 428H(e) (20 U.S.C. 1078-8(e)) is amended--
                    (A) by striking paragraph (6); and
                    (B) by redesignating paragraph (7) as paragraph 
                (6).
            (3) Section 428I(g) (20 U.S.C. 1078-9(g)) is amended by 
        striking ``Code,'' and inserting ``Code''.
            (4) Section 432(m)(1)(B) (20 U.S.C. 1082(m)(1)(B)) is 
        amended--
                    (A) in clause (i), by inserting ``and'' after the 
                semicolon at the end; and
                    (B) in clause (ii), by striking ``; and'' and 
                inserting a period.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

    Section 441(b) (42 U.S.C. 2751(b)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 442. COMMUNITY SERVICE.

    Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended by striking 
``that are open and accessible to the community''.

SEC. 443. ALLOCATION OF FUNDS.

    (a) Phaseout of Allocation Based on Previous Allocations.--
Subsection (a) of section 442(a) (42 U.S.C. 2752(a)) is amended to read 
as follows:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) Base guarantee.--From the amount appropriated 
        pursuant to section 441(b) for each fiscal year after fiscal 
        year 2007, the Secretary shall, subject to paragraph (2), first 
        allocate to each eligible institution an amount equal to the 
        following percentage of the amount such institution received 
        under subsection (a) of this section for fiscal year 2007 (as 
        such subsection was in effect with respect to allocations for 
        such fiscal year):
                    ``(A) 80 percent for fiscal years 2008 and 2009;
                    ``(B) 60 percent for fiscal years 2010 and 2011;
                    ``(C) 40 percent for fiscal years 2012 and 2013;
                    ``(D) 20 percent for fiscal years 2014 and 2015; 
                and
                    ``(E) 0 percent for fiscal year 2016 and any 
                succeeding fiscal year.
            ``(2) Ratable reductions for insufficient appropriations.--
                    ``(A) Reduction of base guarantee.--If the amount 
                appropriated for any fiscal year is less than the 
                amount required to be allocated to all institutions 
                under this subsection, then the amount of the 
                allocation to each such institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations allocation.--If 
                additional amounts are appropriated for any such fiscal 
                year, such reduced amounts shall be increased on the 
                same basis as they were reduced (until the amount 
                allocated equals the amount required to be allocated 
                under this subsection).
            ``(3) Additional allocations for certain institutions.--
                    ``(A) Allocations permitted.--Notwithstanding any 
                other provision of this section, the Secretary may 
                allocate an amount equal to not more than 10 percent of 
                the amount by which the amount appropriated in any 
                fiscal year to carry out this part exceeds $700,000,000 
                among eligible institutions described in subparagraph 
                (B).
                    ``(B) Eligible institutions.--For purposes of 
                subparagraph (A)--
                            ``(i) an eligible institution that is a 4-
                        year institution may receive an allocation 
                        under subparagraph (A) if more than 50 percent 
                        of the students who are degree-seeking Pell 
                        Grant recipients attending such institution 
                        graduate within 4 calendar years of the first 
                        day of enrollment; and
                            ``(ii) an eligible institution that is a 2-
                        year institution may receive an allocation 
                        under subparagraph (A) if more than 50 percent 
                        of the students who are degree-seeking Pell 
                        Grant recipients attending such institution 
                        graduate within 2 calendar years of the first 
                        day of enrollment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to any amounts appropriated under section 441(b) of 
the Higher Education Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 
2007 or any succeeding fiscal year.

SEC. 444. BOOKS AND SUPPLIES.

    Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by 
striking ``$450'' and inserting ``$600''.

SEC. 445. JOB LOCATION AND DEVELOPMENT.

    Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended--
            (1) by striking ``10 percent or $50,000'' and inserting 
        ``15 percent or $75,000''; and
            (2) by inserting before the period at the end the 
        following: ``, except that not less than one-third of such 
        amount shall be specifically allocated to locate and develop 
        community service jobs''.

SEC. 446. WORK COLLEGES.

    Section 448 (42 U.S.C. 2756b) is amended--
            (1) by striking ``work-learning'' each place it appears and 
        inserting ``work-learning-service'';
            (2) by striking ``work-service'' each place it appears and 
        inserting ``work-learning-service'';
            (3) by amending subparagraph (C) of subsection (e)(1) to 
        read as follows:
                    ``(C) requires all resident students, including at 
                least one-half of all students who are enrolled on a 
                full-time basis, to participate in a comprehensive 
                work-learning-service program for at least 5 hours each 
                week, or at least 80 hours during each period of 
                enrollment, unless the student is engaged in an 
                institutionally organized or approved study abroad or 
                externship program; and'';
            (4) by amending paragraph (2) of subsection (e) to read as 
        follows:
            ``(2) the term `comprehensive student work-learning-service 
        program'--
                    ``(A) means a student work-learning-service program 
                that is an integral and stated part of the 
                institution's educational philosophy and program;
                    ``(B) requires participation of all resident 
                students for enrollment and graduation;
                    ``(C) includes learning objectives, evaluation, and 
                a record of work performance as part of the student's 
                college record;
                    ``(D) provides programmatic leadership by college 
                personnel at levels comparable to traditional academic 
                programs;
                    ``(E) recognizes the educational role of work-
                learning-service supervisors; and
                    ``(F) includes consequences for nonperformance or 
                failure in the work-learning-service program similar to 
                the consequences for failure in the regular academic 
                program.''; and
            (5) in subsection (f), by striking ``1999 and such sums as 
        may be necessary for each of the 4 succeeding fiscal years'' 
        and inserting ``2006 and such sums as may be necessary for the 
        5 succeeding fiscal years''.

                  PART D--FEDERAL DIRECT LOAN PROGRAM

SEC. 451. REAUTHORIZATION OF THE DIRECT LOAN PROGRAM.

    (a) Administrative Expenses.--Section 458(a)(1) (20 U.S.C. 
1087h(a)(1)) is amended by striking ``$617,000,000'' and all that 
follows through ``fiscal year 2003'' and inserting ``$820,000,000 in 
fiscal year 2006, $833,000,000 in fiscal year 2007, $847,000,000 in 
fiscal year 2008, $862,000,000 in fiscal year 2009, and $878,000,000 in 
fiscal year 2010, and $894,000,000 in fiscal year 2011''.
    (b) Calculation Basis.--Subsection (b) of section 458 (20 U.S.C. 
1087h(b)) is amended by striking ``shall be calculated--'' and all that 
follows through the end of such subsection and inserting ``shall be 
calculated on the basis of 0.10 percent of the original principal 
amount of outstanding loans on which insurance was issued under part 
B.''.
    (c) Special Rules: Fee Cap.--Section 458(c)(1) (20 U.S.C. 
1087h(c)(1)) is amended by striking subparagraphs (A) through (E) and 
inserting the following:
                    ``(A) for fiscal year 2006, shall not exceed 
                $220,000,000;
                    ``(B) for fiscal year 2007, shall not exceed 
                $233,000,000;
                    ``(C) for fiscal year 2008, shall not exceed 
                $247,000,000;
                    ``(D) for fiscal year 2009, shall not exceed 
                $262,000,000;
                    ``(E) for fiscal year 2010, shall not exceed 
                $278,000,000; and
                    ``(F) for fiscal year 2011, shall not exceed 
                $294,000,000.''.
    (d) Consolidation Loan Eligibility.--Section 455(g) (20 U.S.C. 
1087e(g)) is amended by adding at the end (after the sentence added by 
425(c)(2) of this Act) the following new sentence: ``To be eligible for 
a consolidation loan under this part, a borrower must meet all the 
eligibility criteria set forth in section 428C(a)(3).''.

                  PART E--FEDERAL PERKINS LOAN PROGRAM

SEC. 461. REAUTHORIZATION OF PROGRAM.

    (a) Program Authorization.--
            (1) Authorization of appropriations.--Section 461(b) (20 
        U.S.C. 1087aa(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``1999'' and inserting 
                        ``2006''; and
                            (ii) by striking ``4 succeeding'' and 
                        inserting ``5 succeeding''; and
                    (B) in paragraph (2), by striking ``2003'' each 
                place it appears and inserting ``2012''.
            (2) Federal capital contribution recovery.--Section 466 (20 
        U.S.C. 1087ff) is amended--
                    (A) by striking ``2004'' each place it appears in 
                subsections (a), (b), and (c) and inserting ``2012'';
                    (B) in subsection (a), by striking ``2003'' each 
                place it appears and inserting ``2011''; and
                    (C) in subsection (b), by striking ``2012'' and 
                inserting ``2020''.
    (b) Phaseout of Allocation Based on Previous Allocations.--
            (1) Amendment.--Subsection (a) of section 462 (20 U.S.C. 
        1087bb(a)) is amended to read as follows:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) Base guarantee.--From the amount appropriated 
        pursuant to section 461(b) for each fiscal year after fiscal 
        year 2007, the Secretary shall, subject to paragraphs (2) and 
        (3), first allocate to each eligible institution an amount 
        equal to--
                    ``(A) 100 percent of the amount such institution 
                received under subsection (a) of this section for 
                fiscal year 2007 (as such subsection was in effect with 
                respect to allocations for such fiscal year), 
                multiplied by
                    ``(B) the institution's default penalty, as 
                determined under subsection (e), except that if the 
                institution has a cohort default rate in excess of the 
                applicable maximum cohort default rate under subsection 
                (f), the institution may not receive an allocation 
                under this paragraph.
            ``(2) Phase out.--For each of the fiscal years after fiscal 
        year 2007, paragraph (1) shall be applied by substituting for 
        `100 percent':
                    ``(A) `80 percent' for fiscal years 2008 and 2009;
                    ``(B) `60 percent' for fiscal years 2010 and 2011;
                    ``(C) `40 percent' for fiscal years 2012 and 2013;
                    ``(D) `20 percent' for fiscal years 2014 and 2015; 
                and
                    ``(E) `0 percent' for fiscal year 2016 and any 
                succeeding fiscal year.
            ``(3) Ratable reductions for insufficient appropriations.--
                    ``(A) Reduction of base guarantee.--If the amount 
                appropriated for any fiscal year is less than the 
                amount required to be allocated to all institutions 
                under this subsection, then the amount of the 
                allocation to each such institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations allocation.--If 
                additional amounts are appropriated for any such fiscal 
                year, such reduced amounts shall be increased on the 
                same basis as they were reduced (until the amount 
                allocated equals the amount required to be allocated 
                under this subsection).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any amounts appropriated under 
        section 461(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1087bb(b)) for fiscal year 2008 or any succeeding fiscal year.
    (c) Books and Supplies.--Section 462(c)(4)(D) (20 U.S.C. 
1087bb(c)(4)(D)) is amended by striking ``$450'' and inserting 
``$600''.

SEC. 462. LOAN TERMS AND CONDITIONS.

    (a) Loan Limits.--Section 464(a) (20 U.S.C. 1087dd(a))--
            (1) in paragraph (2)(A)--
                    (A) by striking ``$4,000'' in clause (i) and 
                inserting ``$5,500''; and
                    (B) by striking ``$6,000'' in clause (ii) and 
                inserting ``$8,000''; and
            (2) in paragraph (2)(B)--
                    (A) by striking ``$40,000'' in clause (i) and 
                inserting ``$60,000'';
                    (B) by striking ``$20,000'' in clause (ii) and 
                inserting ``$27,500''; and
                    (C) by striking ``$8,000'' in clause (iii) and 
                inserting ``$11,000''.
    (b) Forbearance.--Section 464(e) (20 U.S.C. 1087dd(e)) is amended 
by striking ``, upon written request,''.
    (c) Special Repayment Rule.--Paragraph (2) of section 464(f) is 
amended to read as follows:
    ``(2) No compromise repayment of a defaulted loan as authorized by 
paragraph (1) may be made unless agreed to by the Secretary.''.
    (d) Rehabilitation.--Section 464(h)(1)(A) (20 U.S.C. 
1087dd(h)(1)(A)) is amended by striking ``12 ontime'' and inserting ``9 
on-time''.

SEC. 463. LOAN CANCELLATION.

    Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is amended--
            (1) by inserting ``(D),'' after ``subparagraph (A), (C),'' 
        in clause (i);
            (2) by inserting ``or'' after the semicolon at the end of 
        clause (ii);
            (3) by striking clause (iii); and
            (4) by redesignating clause (iv) as clause (iii).

SEC. 464. TECHNICAL AMENDMENTS.

    Part E is further amended as follows:
            (1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 
        1087bb(g)(1)(E)(i)(I)) is amended by inserting ``monthly'' 
        after ``consecutive''.
            (2) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is 
        amended by redesignating subclauses (I) and (II) as clauses (i) 
        and (ii), respectively.
            (3) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended--
                    (A) in subparagraph (A), by striking ``section 
                111(c)'' and inserting ``section 1113(a)(5)''; and
                    (B) in subparagraph (C), by striking ``With 
                Disabilities'' and inserting ``with Disabilities''.
            (4) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by 
        striking ``(5)(A), (5)(B)(i), or (6)'' and inserting ``(4)(A), 
        (4)(B), or (5)''.
            (5) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--
                    (A) by striking ``sections 602(a)(1) and 672(1)'' 
                and inserting ``sections 602(3) and 632(5)'';
                    (B) by striking ``qualified professional provider 
                of early intervention services'' and inserting ``early 
                intervention services''; and
                    (C) by striking ``section 672(2)'' and inserting 
                ``section 632(4)''.

                         PART F--NEED ANALYSIS

SEC. 471. SIMPLIFIED NEEDS TEST IMPROVEMENTS.

    Section 479 (20 U.S.C. 1087ss) is amended--
            (1) by striking clause (i) of subsection (b)(1)(A) and 
        inserting the following:
                            ``(i) the student's parents file a form 
                        described in paragraph (3) or certify that they 
                        are not required to file an income tax return, 
                        and the student files such a form or certifies 
                        that the student is not required to file an 
                        income tax return, or the student's parents 
                        receive benefits under a means-tested Federal 
                        benefit program;''.
            (2) by striking clause (i) of subsection (b)(1)(B) and 
        inserting the following:
                            ``(i) the student (and the student's 
                        spouse, if any) files a form described in 
                        paragraph (3) or certifies that the student 
                        (and the student's spouse, if any) is not 
                        required to file an income tax return, or the 
                        student (and the student's spouse, if any) 
                        receives benefits under a means-tested Federal 
                        benefit program;'';
            (3) by striking subparagraph (A) of subsection (c)(1) and 
        inserting the following:
                    ``(A) the student's parents file a form described 
                in subsection (b)(3) or certify that they are not 
                required to file an income tax return, and the student 
                files such a form or certifies that the student is not 
                required to file an income tax return, or the student's 
                parents receive benefits under a means-tested Federal 
                benefit program;'';
            (4) by striking subparagraph (A) of subsection (c)(2) and 
        inserting the following:
                    ``(A) the student (and the student's spouse, if 
                any) files a form described in subsection (b)(3) or 
                certifies that the student (and the student's spouse, 
                if any) is not required to file an income tax return, 
                or the student (and the student's spouse, if any) 
                receives benefits under a means-tested Federal benefit 
                program;''; and
            (5) by adding at the end the following new subsection:
    ``(d) Definition of Means-Tested Federal Benefit Program.--For 
purposes of this section, the term `means-tested Federal benefit 
program' means a mandatory spending program of the Federal Government, 
other than a program under this title, in which eligibility for the 
programs' benefits, or the amount of such benefits, or both, are 
determined on the basis of income or resources of the individual or 
family seeking the benefit, and may include such programs as the 
supplemental security income program under title XVI of the Social 
Security Act, the food stamp program under the Food Stamp Act of 1977, 
and the free and reduced price school lunch program under the Richard 
B. Russell National School Lunch Act, and other programs identified by 
the Secretary.''.

SEC. 472. ADDITIONAL NEED ANALYSIS AMENDMENTS.

    (a) Income Protection Allowance for Dependent Students.--
            (1) Amendment.--Section 475(g)(2)(D) (20 U.S.C. 
        1087oo(g)(2)(D)) is amended by striking ``$2,200'' and 
        inserting ``$3,000''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to determinations of need for periods 
        of enrollment beginning on or after July 1, 2006.
    (b) Employment Expense Allowance.--Section 478(h) (20 U.S.C. 
1087rr(h)) is amended--
            (1) by striking ``476(b)(4)(B),''; and
            (2) by striking ``meals away from home, apparel and upkeep, 
        transportation, and housekeeping services'' and inserting 
        ``food away from home, apparel, transportation, and household 
        furnishings and operations''.
    (c) Discretion of Student Financial Aid Administrators.--Section 
479A(a) (20 U.S.C. 1087tt(a)) is amended--
            (1) by striking ``(a) In general.--'' and inserting the 
        following:
    ``(a) Authority to Make Adjustments.--
            ``(1) Adjustments for special circumstances.--'';
            (2) by inserting before ``Special circumstances may'' the 
        following:
            ``(2) Special circumstances defined.--'';
            (3) by inserting ``a student's status as a ward of the 
        court at any time prior to attaining 18 years of age,'' after 
        ``487,'';
            (4) by inserting before ``Adequate documentation'' the 
        following:
            ``(3) Documentation and use of supplementary information.--
        ''; and
            (5) by inserting before ``No student'' the following:
            ``(4) Fees for supplementary information prohibited.--''.
    (d) Treating Active Duty Members of the Armed Forces as Independent 
Students.--Section 480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by 
inserting before the semicolon at the end the following: ``or is 
currently serving on active duty in the Armed Forces for other than 
training purposes''.
    (e) Excludable Income.--Section 480(e) (20 U.S.C. 1087vv(e)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4); and
            (3) by adding at the end the following new paragraph:
            ``(5) any part of any distribution from a qualified tuition 
        program established under section 529 of the Internal Revenue 
        Code of 1986 that is not includable in gross income under such 
        section 529.''.
    (f) Treatment of Savings Plans.--
            (1) Amendment.--Section 480(f) (20 U.S.C. 1087vv(f)) is 
        amended--
                    (A) in paragraph (1), by inserting ``qualified 
                tuition programs established under section 529 of the 
                Internal Revenue Code of 1986 (26 U.S.C. 529), except 
                as provided in subparagraph (2),'' after ``tax 
                shelters,'';
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
    ``(2) A qualified tuition program shall not be considered an asset 
of a dependent student under section 475 of this part. The value of a 
qualified tuition program for purposes of determining the assets of 
parents or independent students shall be--
            ``(A) the refund value of any tuition credits or 
        certificates purchased under section 529 of the Internal 
        Revenue Code of 1986 (26 U.S.C. 529) on behalf of a 
        beneficiary; or
            ``(B) the current balance of any account which is 
        established under such section for the purpose of meeting the 
        qualified higher education expenses of the designated 
        beneficiary of the account.''.
            (2) Conforming amendment.--Section 480(j) (20 U.S.C. 
        1087vv(j)) is amended--
                    (A) by striking ``; Tuition Prepayment Plans'' in 
                the heading of such subsection;
                    (B) by striking paragraph (2);
                    (C) in paragraph (3), by inserting ``, or a 
                distribution that is not includable in gross income 
                under section 529 of such Code,'' after ``1986''; and
                    (D) by redesignating paragraph (3) as paragraph 
                (2).

  PART G--GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL ASSISTANCE

SEC. 481. DEFINITION OF ACADEMIC YEAR.

    Paragraph (2) of section 481(a) (20 U.S.C. 1088(a)) is amended to 
read as follows:
    ``(2) For the purpose of any program under this title, the term 
`academic year' shall--
            ``(A) require a minimum of 30 weeks of instructional time 
        for a course of study that measures its program length in 
        credit hours; or
            ``(B) require a minimum of 26 weeks of instructional time 
        for a course of study that measures its program length in clock 
        hours; and
            ``(C) require an undergraduate course of study to contain 
        an amount of instructional time whereby a full-time student is 
        expected to complete at least (i) 24 semester or trimester 
        hours or 36 quarter credit hours in a course of study that 
        measures its program length in credit hours, or (ii) 900 clock 
        hours in a course of study that measures its program length in 
        clock hours.''.

SEC. 482. DISTANCE EDUCATION.

    (a) Distance Education: Eligible Program.--Section 481(b) (20 
U.S.C. 1088(b)) is amended by adding at the end the following new 
paragraph:
            ``(3) Distance education.--An otherwise eligible program 
        that is offered in whole or in part through telecommunications 
        is eligible for the purposes of this title if the program is 
        offered by an institution, other than a foreign institution, 
        that has been evaluated and determined (before or after the 
        date of enactment of this paragraph) to have the capability to 
        effectively deliver distance education programs by an 
        accrediting agency or association that--
                    ``(A) is recognized by the Secretary under subpart 
                2 of Part H; and
                    ``(B) has evaluation of distance education programs 
                within the scope of its recognition, as described in 
                section 496(n)(3).''.
    (b) Correspondence Courses.--Section 484(l)(1) (20 U.S.C. 
1091(l)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``for a program of study of 1 year 
                or longer''; and
                    (B) by striking ``unless the total'' and all that 
                follows through ``courses at the institution''; and
            (2) by amending subparagraph (B) to read as follows:
                    ``(B) Exception.--Subparagraph (A) does not apply 
                to an institution or school described in section 
                3(3)(C) of the Carl D. Perkins Vocational and Technical 
                Education Act of 1998.''.

SEC. 483. EXPANDING INFORMATION DISSEMINATION REGARDING ELIGIBILITY FOR 
              PELL GRANTS.

    Section 483(a) (20 U.S.C. 1090(a)) is amended by adding at the end 
the following new paragraph:
            ``(8) Expanding information dissemination regarding 
        eligibility for pell grants.--The Secretary shall make special 
        efforts, in conjunction with State efforts, to notify students 
        and their parents who qualify for a free lunch under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.), the Food Stamps program, or such other programs as the 
        Secretary shall determine, of their potential eligibility for a 
        maximum Pell Grant, and shall disseminate such informational 
        materials as the Secretary deems appropriate.''.

SEC. 484. STUDENT ELIGIBILITY.

    (a) Suspension of Eligibility for Drug Offenses.--Section 484(r)(1) 
(20 U.S.C. 1091(r)(1)) is amended by striking everything preceding the 
table and inserting the following:
            ``(1) In general.--A student who is convicted of any 
        offense under any Federal or State law involving the possession 
        or sale of a controlled substance for conduct that occurred 
        during a period of enrollment for which the student was 
        receiving any grant, loan, or work assistance under this title 
        shall not be eligible to receive any grant, loan, or work 
        assistance under this title from the date of that conviction 
        for the period of time specified in the following table:''.
    (b) Freely Associated States.--Section 484(j) (20 U.S.C. 1091(j)) 
is amended by inserting ``and shall be eligible only for assistance 
under subpart 1 of part A thereafter,'' after ``part C,''.
    (c) Verification of Income Date.--Paragraph (1) of section 484(q) 
(20 U.S.C. 1091(q)) is amended to read as follows:
            ``(1) Confirmation with irs.--The Secretary of Education, 
        in cooperation with the Secretary of the Treasury, is 
        authorized to confirm with the Internal Revenue Service the 
        information specified in section 6103(l)(13) of the Internal 
        Revenue Code of 1986 reported by applicants (including parents) 
        under this title on their Federal income tax returns for the 
        purpose of verifying the information reported by applicants on 
        student financial aid applications.''.
    (d) Technical Amendment.--Section 484(b)(5) is amended by inserting 
``or parent (on behalf of a student)'' after ``student''.

SEC. 485. INSTITUTIONAL REFUNDS.

    Section 484B (20 U.S.C. 1091b) is amended--
            (1) in subsection (a)(1), by inserting ``subpart 4 of part 
        A or'' after ``received under'';
            (2) in subsection (a)(2), by striking ``takes a leave'' and 
        by inserting ``takes one or more leaves'';
            (3) in subsection (a)(3)(B)(ii), by inserting ``(as 
        determined in accordance with subsection (d))'' after ``student 
        has completed'';
            (4) in subsection (a)(4), by amending subparagraph (A) to 
        read as follows:
                    ``(A) In general.--After determining the 
                eligibility of the student for a late disbursement or 
                post-withdrawal disbursement (as required in 
                regulations prescribed by the Secretary), the 
                institution of higher education shall contact the 
                borrower and obtain confirmation that the loan funds 
                are still required by the borrower. In making such 
                contact, the institution shall explain to the borrower 
                the borrower's obligation to repay the funds following 
                any such disbursement. The institution shall document 
                in the borrower's file the result of such contact and 
                the final determination made concerning such 
                disbursement. ''.
            (5) in subsection (b)(1), by inserting ``no later than 45 
        days from the determination of withdrawal'' after ``return'';
            (6) in subsection (b)(2), by amending subparagraph (C) to 
        read as follows:
                    ``(C) Grant overpayment requirements.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) and (B), a student shall only 
                        be required to return grant assistance in the 
                        amount (if any) by which--
                                    ``(I) the amount to be returned by 
                                the student (as determined under 
                                subparagraphs (A) and (B)), exceeds
                                    ``(II) 50 percent of the total 
                                grant assistance received by the 
                                student under this title for the 
                                payment period or period of enrollment.
                            ``(ii) Minimum.--A student shall not be 
                        required to return amounts of $50 or less.''; 
                        and
            (7) in subsection (d), by striking ``(a)(3)(B)(i)'' and 
        inserting ``(a)(3)(B)''.

SEC. 486. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR 
              STUDENTS.

    (a) Information Dissemination Activities.--Section 485(a)(1) (20 
U.S.C. 1092(a)(1)) is amended--
            (1) by amending the second sentence to read as follows: 
        ``The information required by this section shall be produced 
        and be made publicly available to an enrolled student and to 
        any prospective student in a uniform and comprehensible manner, 
        through appropriate publications, mailings, electronic media, 
        and the reports required by the institution's accrediting 
        agency under section 496(c)(9).'';
            (2) by amending subparagraph (G) to read as follows:
            ``(G) the academic programs of the institution, including--
                    ``(i) the current degree programs and other 
                educational and training programs;
                    ``(ii) the institution's learning objectives for 
                those programs;
                    ``(iii) the instructional, laboratory, and other 
                physical plant facilities which relate to the academic 
                programs; and
                    ``(iv) the faculty and other instructional 
                personnel;'';
            (3) by striking subparagraph (L) and inserting the 
        following:
            ``(L) a summary of student outcomes for full-time 
        undergraduate students, including--
                    ``(i) the completion or graduation rates of 
                certificate- or degree-seeking undergraduate students 
                entering such institutions;
                    ``(ii) when readily available, information showing 
                the number of undergraduate students that transfer out 
                of the institution; and
                    ``(iii) any other student outcome data, qualitative 
                or quantitative, including data regarding distance 
                education deemed by the institution to be appropriate 
                to its stated educational mission and goals, and, when 
                applicable, licensing and placement rates for 
                professional and vocational programs;'';
            (4) by inserting before the semicolon at the end of 
        subparagraph (J) the following: ``, and the process for 
        students to register complaints with the accrediting agencies 
        or associations'';
            (5) in subparagraph (M), by striking ``guaranteed student 
        loans under part B of this title or direct student loans under 
        part E of this title, or both,'' and inserting ``student loans 
        under part B, D, or E of this title'';
            (6) by striking ``and'' at the end of subparagraph (N);
            (7) by striking the period at the end of subparagraph (O) 
        and inserting a semicolon; and
            (8) by adding at the end the following new subparagraphs:
            ``(P) the penalties contained in subsection 484(r) 
        regarding suspension of eligibility for drug related offenses; 
        and
            ``(Q) the policies of the institution for accepting 
        transfer of credit, explained in a manner that clearly states 
        the basis for determining the acceptability and applicability 
        of transfer of credits.''.
    (b) Additional Amendments.--Section 485(a) is further amended by 
striking paragraph (6) and inserting the following:
            ``(6) Each institution may provide supplemental information 
        to enrolled and prospective students showing the completion or 
        graduation rate for students described in paragraph (4). For 
        the purpose of this paragraph, the definitions provided in the 
        Integrated Postsecondary Education Data System shall apply.
            ``(7) Each eligible institution participating in any 
        program under this title may publicly report to currently 
        enrolled and prospective students the voluntary information 
        collected by the National Survey of Student Engagement (NSSE), 
        the Community College Survey of Student Engagement (CCSSE), or 
        other instruments that provide evidence of student 
        participation in educationally purposeful activities. The 
        information shall be produced and made available in a uniform 
        and comprehensible manner, through appropriate publications, 
        mailings, and electronic media, and may be included in reports 
        required by the institution's accrediting agency.''.
    (c) Exit Counseling.--Section 485(b) (20 U.S.C. 1092(b)) is amended 
by adding at the end the following new paragraph:
    ``(3) Each eligible institution shall, during the exit interview 
required by this subsection, provide to a borrower of a loan made under 
part B, D, or E a clear and conspicuous notice describing the effect of 
using a consolidation loan to discharge the borrower's student loans, 
including--
            ``(A) the effects of consolidation on total interest to be 
        paid, fees to be paid, and length of repayment;
            ``(B) the effects of consolidation on a borrower's 
        underlying loan benefits, including loan forgiveness, 
        cancellation, and deferment;
            ``(C) the ability for the borrower to prepay the loan, pay 
        on a shorter schedule, and to change repayment plans, and that 
        borrower benefit programs may vary among different loan 
        holders;
            ``(D) the tax benefits for which the borrower may be 
        eligible; and
            ``(E) the consequences of default.''.
    (d) Campus Crime Information.--Section 485(f)(1) (20 U.S.C. 
1092(f)(1)) is amended by inserting ``, other than a foreign 
institution of higher education,'' after ``under this title''.
    (e) Transfer of Credit Policies.--Section 485 is further amended by 
adding at the end the following new subsection:
    ``(h) Transfer of Credit Policies.--
            ``(1) Disclosure.--Each eligible institution participating 
        in any program under this title shall publicly disclose in a 
        readable and comprehensible manner its transfer of credit 
        policies which shall include:
                    ``(A) A statement of the institution's current 
                transfer of credit policies that includes at least--
                            ``(i) a statement that transfer of credit 
                        shall not be denied solely on the basis of the 
                        agency or association that accredited such 
                        other eligible institution, if that agency or 
                        association is recognized by the Secretary 
                        pursuant to section 496 to be a reliable 
                        authority as to the quality of the education or 
                        training offered; and
                            ``(ii) a statement that transfer of credit 
                        shall be decided on the basis of whether the 
                        courses or program are determined by the 
                        institution to be acceptable for credit in 
                        accordance with objective criteria that the 
                        institution publicly discloses and the student 
                        completed such courses or programs at the 
                        institution's required level of proficiency.
                    ``(B) Statistics concerning the annual, as well as 
                a 3-year rolling average, rate of the percentage of 
                credits accepted in transfer and fully counted toward 
                the degree or certificate completion requirements of 
                undergraduate students. Such data shall be 
                disaggregated to report on the following categories of 
                institutions from which credits were accepted in 
                transfer:
                            ``(i) nationally accredited;
                            ``(ii) regionally accredited in the same 
                        State;
                            ``(iii) regionally accredited in the same 
                        region; and
                            ``(iv) regionally accredited in a different 
                        region.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to--
                    ``(A) authorize an officer or employee of the 
                Department to exercise any direction, supervision, or 
                control over the curriculum, program of instruction, 
                administration, or personnel of any institution of 
                higher education, or over any accrediting agency or 
                association;
                    ``(B) limit the application of the General 
                Education Provisions Act; or
                    ``(C) create any legally enforceable right.''.

SEC. 487. COLLEGE ACCESS INITIATIVE.

    Part G is further amended by inserting after section 485C (20 
U.S.C. 1092c) the following new section:

``SEC. 485D. COLLEGE ACCESS INITIATIVE.

    ``(a) State-By-State Information.--The Secretary shall direct each 
guaranty agency with which the Secretary has an agreement under section 
428(c) to provide to the Secretary the information necessary for the 
development of web links and access for students and families to a 
comprehensive listing of the postsecondary education opportunities 
programs, publications, Internet Web sites, and other services 
available in the States for which such agency serves as the designated 
guarantor.
    ``(b) Guaranty Agency Activities.--
            ``(1) Plan and activity required.--Each guaranty agency 
        with which the Secretary has an agreement under section 428(c) 
        shall develop a plan and undertake the activity necessary to 
        gather the information required under subsection (a) and to 
        make such information available to the public and to the 
        Secretary in a form and manner as prescribed by the Secretary.
            ``(2) Activities.--Each guaranty agency shall undertake 
        such activities as are necessary to promote access to 
        postsecondary education for students through providing 
        information on college planning, career preparation, and paying 
        for college. The guaranty agency shall publicize such 
        information and coordinate such activities with other entities 
        that either provide or distribute such information in the 
        States for which such guaranty agency serves as the designated 
        guarantor.
            ``(3) Funding.--The activities required by this section may 
        be funded from the guaranty agency's operating account 
        established pursuant to section 422B and to the extent funds 
        remain, from earnings on the restricted account established 
        pursuant to section 422(h)(4).
    ``(c) Access to Information.--
            ``(1) Secretary's responsibility.--The Secretary shall 
        ensure the availability of the information provided by the 
        guaranty agencies in accordance with this section to students, 
        parents and other interested individuals, through web links or 
        other methods prescribed by the Secretary.
            ``(2) Guaranty agency responsibility.--The guaranty 
        agencies shall ensure that the information required by this 
        section is available without charge in printed format for 
        students and parents requesting such information.
            ``(3) Publicity.--Within 270 days after the date of 
        enactment of the College Access and Opportunity Act of 2005, 
        the Secretary and guaranty agencies shall publicize the 
        availability of the information required by this section, with 
        special emphasis on ensuring that populations that are 
        traditionally underrepresented in postsecondary education are 
        made aware of the availability of such information.''.

SEC. 488. DISTANCE EDUCATION DEMONSTRATION PROGRAM.

    (a) Eligible Applicants.--Section 486(b)(3) (20 U.S.C. 1093(b)(3)) 
is amended--
            (1) in subparagraph (B), by striking ``section 
        102(a)(1)(C)'' and inserting ``section 102''; and
            (2) in subparagraph (C), by striking ``subsection (a) of 
        section 102, other than the requirement of paragraph (3)(A) or 
        (3)(B) of such subsection,'' and inserting ``section 101, other 
        than the requirements of subparagraph (A) or (B) of subsection 
        (b)(4) of such section''.
    (b) Selection.--Section 486(d)(1) (20 U.S.C. 1093(d)(1)) is 
amended--
            (1) by striking ``the third year'' and inserting 
        ``subsequent years'';
            (2) by striking ``35 institutions'' and inserting ``100 
        institutions''; and
            (3) by adding at the end the following new sentence: ``Not 
        more than 5 of such institutions, systems, or consortia may be 
        accredited, degree-granting correspondence schools.''.

SEC. 489. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.

    Part G of title IV is amended by inserting after section 486 (20 
U.S.C. 1093) the following new section:

``SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to provide, through a college affordability 
        demonstration program, for increased innovation in the delivery 
        of higher education and student financial aid in a manner 
        resulting in reduced costs for students as well as the 
        institution by accelerating degree or program completion, 
        increasing availability of, and access to, distance components 
        of education delivery, and other alternative methodologies; and
            ``(2) to help determine--
                    ``(A) the most effective means of delivering 
                student financial aid as well as quality education;
                    ``(B) the specific statutory and regulatory 
                requirements that should be altered to provide for more 
                efficient and effective delivery of student financial 
                aid, as well as access to high quality distance 
                education programs, resulting in a student more 
                efficiently completing postsecondary education; and
                    ``(C) the most effective methods of obtaining and 
                managing institutional resources.
    ``(b) Demonstration Program Authorized.--
            ``(1) In general.--In accordance with the purposes 
        described in subsection (a) and the provisions of subsection 
        (d), the Secretary is authorized to select not more than 100 
        institutions of higher education or systems of such 
        institutions for voluntary participation in the College 
        Affordability Demonstration Program in order to enable 
        participating institutions to carry out such purposes by 
        providing programs of postsecondary education, and making 
        available student financial assistance under this title to 
        students enrolled in those programs, in a manner that would not 
        otherwise meet the requirements of this title.
            ``(2) Waivers.--The Secretary is authorized to waive for 
        any institutions of higher education, or any system or 
        consortia of institutions of higher education, selected for 
        participation in the College Affordability Demonstration 
        Program, any requirements of this Act or the regulations 
        thereunder as deemed necessary by the Secretary to meet the 
        purpose described in subsection (a)(1).
            ``(3) Eligible applicants.--
                    ``(A) Eligible institutions.--Except as provided in 
                subparagraph (B), only an institution of higher 
                education that is eligible to participate in programs 
                under this title shall be eligible to participate in 
                the demonstration program authorized under this 
                section.
                    ``(B) Prohibition.--An institution of higher 
                education described in section 102 shall not be 
                eligible to participate in the demonstration program 
                authorized under this section.
    ``(c) Application.--
            ``(1) In general.--Each institution or system of 
        institutions desiring to participate in the demonstration 
        program under this section shall submit an application to the 
        Secretary at such time and in such manner as the Secretary may 
        require.
            ``(2) Contents of applications.--Each application for the 
        college affordability demonstration program shall include at 
        least the following:
                    ``(A) a description of the institution or system of 
                institutions and what quality assurance mechanisms are 
                in place to insure the integrity of the Federal 
                financial aid programs;
                    ``(B) a description of each regulatory or statutory 
                requirement for which waivers are sought, with a reason 
                for each waiver;
                    ``(C) a description of the programs being offered 
                and the affected students;
                    ``(D) a description of the expected outcomes of the 
                program changes proposed, including the estimated 
                reductions in costs both for the institution and for 
                students;
                    ``(E) a description of any collaborative 
                arrangements with other institutions or organizations 
                to reduce costs;
                    ``(F) a description of any expected economic impact 
                of participation in the program within the community in 
                which the institution is located;
                    ``(G) a description of how the institution will 
                reduce the costs of instructional materials, including 
                textbooks;
                    ``(H) an assurance that the participating 
                institution or system of institutions will offer full 
                cooperation with the ongoing evaluations of the 
                demonstration program provided for in this section; and
                    ``(I) any other information or assurances the 
                Secretary may require.
    ``(d) Selection.--In selecting institutions to participate in the 
demonstration program under this section, the Secretary shall take into 
account--
            ``(1) the number and quality of applications received, 
        determined on the basis of the contents required by subsection 
        (c)(2);
            ``(2) the Department's capacity to oversee and monitor each 
        institution's participation;
            ``(3) an institution's--
                    ``(A) financial responsibility;
                    ``(B) administrative capability;
                    ``(C) program or programs being offered via 
                distance education;
                    ``(D) student completion rates; and
                    ``(E) student loan default rates; and
            ``(4) the participation of a diverse group of institutions 
        with respect to size, mission, and geographic distribution.
    ``(e) Notification.--The Secretary shall make available to the 
public and to the authorizing committees a list of institutions and 
systems of institutions selected to participate in the demonstration 
program authorized by this section. Such notice shall include a listing 
of the specific statutory and regulatory requirements being waived for 
each institution or system of institutions and a description of the 
distance education courses to be offered.
    ``(f) Evaluations and Reports.--
            ``(1) Evaluation.--The Secretary shall evaluate the 
        demonstration program authorized under this section on a 
        biennial basis. Such evaluations specifically shall review--
                    ``(A) the number and types of students 
                participating in the programs offered, including the 
                progress of participating students toward recognized 
                certificates or degrees and the extent to which 
                participation in such programs increased;
                    ``(B) issues related to student financial 
                assistance for distance education;
                    ``(C) effective technologies and alternative 
                methodologies for delivering student financial 
                assistance;
                    ``(D) the extent of the cost savings to the 
                institution, the student, and the Federal Government by 
                virtue of the waivers provided, and an estimate as to 
                future cost savings should the demonstration program 
                continue;
                    ``(E) the extent to which students saved money by 
                virtue of completing their postsecondary education 
                sooner;
                    ``(F) the extent to which the institution reduced 
                its tuition and fees and its costs by virtue of 
                participation in the demonstration program;
                    ``(G) the extent to which any collaborative 
                arrangements with other institutions or organizations 
                have reduced the participating institution's costs; and
                    ``(H) the extent to which statutory or regulatory 
                requirements not waived under the demonstration program 
                present difficulties for students or institutions.
            ``(2) Policy analysis.--The Secretary shall review current 
        policies and identify those policies that present impediments 
        to the development and use of distance education and other 
        nontraditional methods of expanding access to education.
            ``(3) Reports.--The Secretary shall provide a report to the 
        authorizing committees on a biennial basis regarding--
                    ``(A) the demonstration program authorized under 
                this section;
                    ``(B) the results of the evaluations conducted 
                under paragraph (1);
                    ``(C) the cost savings to the Federal Government by 
                the demonstration program authorized by this section; 
                and
                    ``(D) recommendations for changes to increase the 
                efficiency and effective delivery of financial aid.
    ``(g) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a continuing 
basis--
            ``(1) ensure compliance of institutions or systems of 
        institutions with the requirements of this title (other than 
        the sections and regulations that are waived under subsection 
        (b)(2));
            ``(2) provide technical assistance to institutions in their 
        application to and participation in the demonstration program;
            ``(3) monitor fluctuations in the student population 
        enrolled in the participating institutions or systems of 
        institutions;
            ``(4) monitor changes in financial assistance provided at 
        the institution; and
            ``(5) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory authorities.
    ``(h) Termination of Authority.--The authority of the Secretary 
under this section shall cease to be effective on October 1, 2011.''.

SEC. 490. PROGRAM PARTICIPATION AGREEMENTS.

    (a) Refund Policies.--Section 487(a) (20 U.S.C. 1094(a)) is 
amended--
            (1) in paragraph (22), by striking ``refund policy'' and 
        inserting ``policy on the return of title IV funds''; and
            (2) in paragraph (23)--
                    (A) by moving subparagraph (C) 2 em spaces to the 
                left; and
                    (B) by adding after such subparagraph the following 
                new subparagraph:
            ``(D) An institution shall be considered in compliance with 
        the requirements of subparagraph (A) for any student to whom 
        the institution electronically transmits a message containing a 
        voter registration form acceptable for use in the State in 
        which the institution is located, or an Internet address where 
        such a form can be downloaded, provided such information is in 
        an electronic message devoted to voter registration.''.
    (b) Audit Requirements.--Section 487(c)(1)(A)(i) (20 U.S.C. 
1094(c)(1)(A)(i)) is amended by inserting before the semicolon at the 
end the following: ``, except that the Secretary may modify the 
requirements of this clause with respect to institutions of higher 
education that are foreign institutions, and may waive such 
requirements with respect to a foreign institution whose students 
receive less than $500,000 in loans under this title during the award 
year preceding the audit period''.
    (c) Reports on Disciplinary Proceedings.--
            (1) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is 
        amended by adding at the end the following new paragraph:
            ``(24) The institution will disclose to the alleged victim 
        of any crime of violence (as that term is defined in section 16 
        of title 18), or a nonforcible sex offense, the final results 
        of any disciplinary proceeding conducted by such institution 
        against a student who is the alleged perpetrator of such crime 
        or offense with respect to such crime or offense. If the 
        alleged victim of such crime or offense is deceased, the next 
        of kin of such victim shall be treated as the alleged victim 
        for purposes of this paragraph.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any disciplinary proceeding 
        conducted by such institution on or after one year after the 
        date of enactment of this Act.

SEC. 491. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS.

    Part G is further amended as follows:
            (1) Section 483(d) (20 U.S.C. 1090(d)) is amended by 
        striking ``that is authorized under section 685(d)(2)(C)'' and 
        inserting ``, or another appropriate provider of technical 
        assistance and information on postsecondary educational 
        services, that is supported under section 663''.
            (2) Section 484 (20 U.S.C. 1091) is amended--
                    (A) in subsection (a)(4), by striking 
                ``certification,,'' and inserting ``certification,'';
                    (B) in subsection (b)(2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``section 428A'' and inserting 
                        ``section 428H'';
                            (ii) in subparagraph (A), by inserting 
                        ``and'' after the semicolon at the end thereof;
                            (iii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
                            (iv) by striking subparagraph (C); and
                    (C) in subsection (l)(1)(B)(i), by striking 
                ``section 521(4)(C) of the Carl D. Perkins Vocational 
                and Applied Technology Education Act'' and inserting 
                ``section 3(3)(C) of the Carl D. Perkins Vocational and 
                Technical Education Act of 1998''.
            (3) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
                    (A) by redesignating paragraphs (6) through (10) as 
                paragraphs (7) through (11), respectively;
                    (B) by redesignating the paragraph (5) (as added by 
                section 2008 of Public Law 101-239) as paragraph (6); 
                and
                    (C) in paragraph (5) (as added by section 204(3) of 
                the National Community Service Act of 1990 (Public Law 
                101-610))--
                            (i) by striking ``(22 U.S.C. 2501 et 
                        seq.)),'' and inserting ``(22 U.S.C. 2501 et 
                        seq.),''; and
                            (ii) by striking the period at the end 
                        thereof and inserting a semicolon.
            (4) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding 
        at the end the following new paragraph:
    ``(3) The appointment of members under subparagraphs (A) and (B) of 
paragraph (1) shall be effective upon publication of the appointment in 
the Congressional Record.''.
            (5) Section 491(k) (20 U.S.C. 1098(k)) is amended by 
        striking ``2004'' and inserting ``2011''.
            (6) Section 493A (20 U.S.C. 1098c) is repealed.
            (7) Section 498 (20 U.S.C. 1099c) is amended--
                    (A) in subsection (c)(2), by striking ``for 
                profit,'' and inserting ``for-profit,''; and
                    (B) in subsection (d)(1)(B), by inserting ``and'' 
                after the semicolon at the end thereof.

                       PART H--PROGRAM INTEGRITY

SEC. 495. ACCREDITATION.

    (a) Standards for Accreditation.--Section 496(a) (20 U.S.C. 
1099b(a)) is amended--
            (1) in paragraph (3)--
                    (A) by inserting ``or'' after the semicolon at the 
                end of subparagraph (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (2) in paragraph (4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by inserting ``and'' after the semicolon at the 
                end thereof; and
                    (C) by adding at the end the following new 
                subparagraph:
            ``(B) if such agency or association already has or seeks to 
        include within its scope of recognition the evaluation of the 
        quality of institutions or programs offering distance 
        education, such agency or association shall, in addition to 
        meeting the other requirements of this subpart--
                    ``(i) demonstrate to the Secretary that, through 
                application of its standards, procedures, and policies, 
                particularly those required under paragraph (5) of this 
                subsection, the agency or association determines that 
                the quality of instruction and student support services 
                for distance education is comparable to that provided 
                by the institution in its classrooms and on its 
                campuses (or if distance education is the only mode of 
                delivery used by the institution, comparable to the 
                quality of instruction and student support services 
                provided in campus settings); and
                    ``(ii) evaluate how an institution offering 
                distance education ensures the integrity of student 
                participation in its distance education programs;''.
                    (D) by inserting after ``standards'' the following: 
                ``(including standards to assess the quality of 
                distance education that are comparable to the standards 
                used for face-to-face classroom instruction)'';
            (3) in paragraph (5)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) success with respect to student achievement 
                in relation to the institution's mission, including, as 
                appropriate, consideration of student academic 
                achievement as determined by the institution (in 
                accordance with standards of the accrediting agency or 
                association) related to each institution's articulation 
                of desired learning outcomes, retention, course and 
                program completion, State licensing examinations, and 
                job placement rates; and other student performance data 
                selected by the institution, particularly data used by 
                the institution to evaluate or strengthen its 
                educational programs, and including thresholds for 
                course completion and job placement rates if the 
                institution offers certificate-granting vocation or 
                technical programs;'';
                    (B) in subparagraph (E), by striking ``fiscal and 
                administrative capacity'' and inserting ``fiscal, 
                administrative, and governance capacity''; and
                    (C) by amending subparagraph (I) to read as 
                follows:
                    ``(I) record of student complaints received by the 
                agency or association, including those resulting from 
                the process described in section 485(a)(1)(J); and'';
            (4) by striking ``and'' at the end of paragraph (7); and
            (5) by striking paragraph (8) and inserting the following:
            ``(8) such agency or association shall make available to 
        the public and the State licensing or authorizing agency, and 
        submit to the Secretary, for use in consumer information 
        programs, a summary of agency or association actions, 
        including--
                    ``(A) the award of accreditation or reaccreditation 
                of an institution and any findings made in connection 
                with the accreditation or reaccreditation;
                    ``(B) final denial, withdrawal, suspension, or 
                termination of accreditation, or placement on probation 
                of an institution, together with the comments of the 
                affected institution;
                    ``(C) any other adverse action taken with respect 
                to an institution;
                    ``(D) a list of the individuals who comprise the 
                inspection and review teams for each agency or 
                association, including each individual's name, agency 
                affiliation, and relevant professional experience;
                    ``(E) a description of the agency's or 
                association's process for selecting, training, and 
                evaluating such individuals; and
                    ``(F) the agency's or association's code of conduct 
                for its commissioners and such individuals; and
            ``(9) such agency or association shall--
                    ``(A) review, during its onsite comprehensive 
                review, the transfer of credit policies of programs and 
                institutions under its accreditation; and
                    ``(B) not adopt or apply standards, policies, or 
                practices that restrict or deny the transfer of credits 
                earned by a student completing courses or programs at 
                other eligible institutions of higher education solely 
                on the basis of the agency or association that 
                accredited such other eligible institution if that 
                agency or association--
                            ``(i) is recognized by the Secretary 
                        pursuant to this section to be a reliable 
                        authority as to the quality of the education or 
                        training offered; and
                            ``(ii) is currently listed by the Secretary 
                        pursuant to section 101(c).''.
    (b) Operating Procedures.--Section 496(c) (20 U.S.C. 1099b(c)) is 
amended--
            (1) by inserting ``(including those regarding distance 
        education), and have several years of related experience'' 
        before the semicolon at the end of paragraph (1);
            (2) by striking ``and'' at the end of paragraph (5);
            (3) by striking the period at the end of paragraph (6) and 
        inserting a semicolon; and
            (4) by inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) ensures that its onsite comprehensive reviews for 
        accreditation or reaccreditation include evaluation of the 
        substance of the information required in subparagraphs (G) and 
        (H) of section 485(a)(1);
            ``(8) confirms as a part of its review for accreditation or 
        reaccreditation that the institution has transfer policies that 
        are publicly disclosed and consistently applied;
            ``(9) develops as required in subsection (a)(8), a summary 
        available to the public of the agency's action and the 
        significant findings related to that action;
            ``(10) includes, in its evaluation for accreditation or 
        reaccreditation, review of the transfer of credit policies of 
        the program or institution to assure that transfer policies do 
        not deny transfer of credit based solely on the accreditation 
        of the sending program or institution, except that nothing in 
        this review shall restrict the right of the receiving program 
        or institution to determine, on any other basis or on a 
        combination of that basis together with other bases, the 
        credits the receiving program or institution will accept for 
        transfer; and
            ``(11) monitors the growth of distance education programs, 
        evaluating, as appropriate, the development and management of 
        such programs at institutions that are experiencing significant 
        growth in distance education.''.
    (c) Limitation, Suspension, and Termination of Recognition.--
Section 496(l) is amended by adding at the end the following new 
paragraph:
    ``(3) The Secretary shall provide an annual report to Congress on 
the status of any agency or association for which the Secretary has 
limited, suspended or terminated recognition under this subsection.''.
    (d) College Consumer Profile.--Section 496 is further amended--
            (1) by redesignating subsection (o) as subsection (p); and
            (2) by inserting after subsection (n):
    ``(o) College Consumer Profile.--
            ``(1) Information dissemination.--No accrediting agency or 
        association shall be recognized by the Secretary as a reliable 
        authority as to the quality of the education or training 
        offered by an institution seeking to participate in the 
        programs authorized under this title, unless the agency ensures 
        each institution subject to its jurisdiction makes publicly 
        available in a uniform and comprehensible manner, a college 
        consumer profile including, at minimum, information on the 
        institution's--
                    ``(A) mission;
                    ``(B) student demographics;
                    ``(C) accreditation;
                    ``(D) faculty/student ratios;
                    ``(E) faculty qualifications, including the number 
                of faculty with terminal degrees;
                    ``(F) tuition, fees, and other costs of attending 
                the institution;
                    ``(G) student services, including services for 
                students with disabilities;
                    ``(H) policies and procedures for evaluating and 
                accepting credits earned by students transferring from 
                other institutions and the percentage of such credits 
                accepted;
                    ``(I) completion and graduation rates; and
                    ``(J) placement rates and other measures of success 
                in preparing students for entry into or advancement in 
                the workforce.
            ``(2) Publication of college consumer profile.--The 
        contents of the college consumer profile required by paragraph 
        (1) shall be made public through dissemination via the 
        Secretary's data collection and dissemination system. The 
        information required to be disclosed by section 485 may be used 
        by the institution to provide (where applicable) the contents 
        of the college consumer profile, but nothing in this subsection 
        shall be construed to relieve the institution of any 
        information disclosure requirement of such section.''.

                    TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. DEFINITIONAL CHANGES.

    Section 502(a) (20 U.S.C. 1101a(a)) is amended--
            (1) in paragraph (5)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (A);
                    (B) by inserting ``at the end of the award year 
                immediately preceding the date of application'' after 
                ``Hispanic students'' in subparagraph (B);
                    (C) by striking ``; and'' at the end of 
                subparagraph (B) and inserting a period; and
                    (D) by striking subparagraph (C); and
            (2) by striking paragraph (7).

SEC. 502. ASSURANCE OF ENROLLMENT OF NEEDY STUDENTS.

    Section 511(c) (20 U.S.C. 1103(c)) is amended--
            (1) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively; and
            (2) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) contain such assurances as the Secretary may require 
        that the institution has an enrollment of needy students as 
        required by section 502(b);''.

SEC. 503. ADDITIONAL AMENDMENTS.

    Title V is further amended--
            (1) in section 502(a)(2)(A) (20 U.S.C. 1101a(a)(2)(A)), by 
        redesignating clauses (v) and (vi) as clauses (vi) and (vii), 
        respectively, and inserting after clause (iv) the following new 
        clause:
                            ``(v) which provides a program of not less 
                        than 2 years that is acceptable for full credit 
                        toward a bachelor's degree; and'';
            (2) in section 503(b) (20 U.S.C. 1101b(b))--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) Construction, maintenance, renovation, and 
        improvement in classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services, and the 
        acquisition of real property adjacent to the campus of the 
        institution on which to construct such facilities.'';
                    (B) by amending paragraph (12) to read as follows:
            ``(12) Establishing community outreach programs and 
        collaborative partnerships between Hispanic-serving 
        institutions and local elementary or secondary schools. Such 
        partnerships may include mentoring, tutoring, or other 
        instructional opportunities that will boost student academic 
        achievement and assist elementary and secondary school students 
        in developing the academic skills and the interest to pursue 
        postsecondary education.'';
                    (C) by redesignating paragraphs (5) through (14) as 
                paragraphs (6) through (15), respectively; and
                    (D) by inserting after paragraph (4) the following:
            ``(5) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (3) in section 504(a) (20 U.S.C. 1101c(a))--
                    (A) by striking the following:
    ``(a) Award Period.--
            ``(1) In general.--The Secretary'' and inserting the 
        following:
    ``(a) Award Period.--The Secretary''; and
                    (B) by striking paragraph (2); and
            (4) in section 514(c) (20 U.S.C. 1103c(c)), by striking 
        ``section 505'' and inserting ``section 504''.

SEC. 504. TITLE V AUTHORIZATION.

    Subsection (a) of section 518 of such Act (20 U.S.C. 1103g(a)) is 
amended to read as follows:
    ``(a) Authorizations of Appropriations.--There are authorized to be 
appropriated to carry out this title $96,000,000 for fiscal year 2006 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.''.

                     TITLE VI--TITLE VI AMENDMENTS

SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.

    (a) Findings and Purposes.--Section 601 (20 U.S.C. 1121) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``post-Cold War'' in paragraph (3);
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively; and
                    (C) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) The events and aftermath of September 11, 2001, have 
        underscored the need for the nation to strengthen and enhance 
        American knowledge of international relations, world regions, 
        and foreign languages. Homeland security and effective United 
        States engagement abroad depend upon an increased number of 
        Americans who have received such training and are willing to 
        serve their nation.'';
            (2) in subsection (b)(1)--
                    (A) by striking ``; and'' at the end of 
                subparagraph (D) and inserting ``, including through 
                linkages overseas with institutions of higher education 
                and relevant organizations that contribute to the 
                educational programs assisted under this part;'';
                    (B) by inserting ``and'' after the semicolon at the 
                end of subparagraph (E); and
                    (C) by inserting after such subparagraph (E) the 
                following new subparagraph:
            ``(F) to assist the national effort to educate and train 
        citizens to participate in the efforts of homeland security;''; 
        and
            (3) in subsection (b)(3), by inserting ``reinforce and'' 
        before ``coordinate''.
    (b) Graduate and Undergraduate Language and Area Centers and 
Programs.--Section 602(a) (20 U.S.C. 1122(a)) is amended--
            (1) in paragraph (1), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--The Secretary is authorized to 
                make grants to institutions of higher education or 
                consortia of such institutions for the purpose of 
                establishing, strengthening, and operating--
                            ``(i) comprehensive foreign language and 
                        area or international studies centers and 
                        programs; and
                            ``(ii) a diverse network of undergraduate 
                        foreign language and area or international 
                        studies centers and programs.'';
            (2) in paragraph (2)--
                    (A) by striking ``and'' at the end of subparagraph 
                (G);
                    (B) by striking the period at the end of 
                subparagraph (H) and inserting a semicolon; and
                    (C) by inserting after subparagraph (H) the 
                following new subparagraphs:
                    ``(I) supporting instructors of the less commonly 
                taught languages;
                    ``(J) widely disseminating materials developed by 
                the center or program to local educational agencies and 
                public and private elementary and secondary education 
                schools, and institutions of higher education, 
                presented from diverse perspectives and reflective of 
                the full range of views on the subject matter, except 
                that no more than 50 percent of funds awarded to an 
                institution of higher education or consortia of such 
                institutions for purposes under this title may be 
                associated with the costs of dissemination; and
                    ``(K) projects that support in students an 
                understanding of science and technology in coordination 
                with foreign language proficiency.''; and
            (3) in paragraph (4)--
                    (A) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Partnerships or programs of linkage and 
                outreach with 2-year and 4-year colleges and 
                universities, including colleges of education and 
                teacher professional development programs.'';
                    (B) in subparagraph (C), by striking ``Programs of 
                linkage or outreach'' and inserting ``Partnerships or 
                programs of linkage and outreach'';
                    (C) in subparagraph (E)--
                            (i) by striking ``foreign area'' and 
                        inserting ``area studies'';
                            (ii) by striking ``of linkage and 
                        outreach''; and
                            (iii) by striking ``(C), and (D)'' and 
                        inserting ``(D), and (E)'';
                    (D) by redesignating subparagraphs (C), (D), and 
                (E) as subparagraphs (D), (E), and (F), respectively; 
                and
                    (E) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) Partnerships with local educational agencies 
                and public and private elementary and secondary 
                education schools that are designed to increase student 
                academic achievement in foreign language and knowledge 
                of world regions, and to facilitate the wide 
                dissemination of materials related to area studies, 
                foreign languages, and international studies that are 
                reflective of a full range of views on the subject 
                matter.''.
    (c) Language Resource Centers.--Section 603(c) (20 U.S.C. 1123(c)) 
is amended by inserting ``reflect the purposes of this part and'' after 
``shall''.
    (d) Undergraduate International Studies and Foreign Language 
Programs.--Section 604 (20 U.S.C. 1124) is amended--
            (1) in subsection (a)(1), by striking ``combinations'' each 
        place it appears and inserting ``consortia'';
            (2) in subsection (a)(2)--
                    (A) in subparagraph (B)(ii), by striking ``teacher 
                training'' and inserting ``teacher professional 
                development'';
                    (B) by redesignating subparagraphs (I) through (M) 
                as subparagraphs (J) through (N), respectively;
                    (C) by inserting after subparagraph (H) the 
                following new subparagraph:
                    ``(I) the provision of grants for educational 
                programs abroad that are closely linked to the 
                program's overall goals and have the purpose of 
                promoting foreign language fluency and knowledge of 
                world regions, except that not more than 10 percent of 
                a grant recipient's funds may be used for this 
                purpose;''; and
                    (D) in subparagraph (M)(ii) (as redesignated by 
                subparagraph (B) of this paragraph), by striking 
                ``elementary and secondary education institutions'' and 
                inserting ``local educational agencies and public and 
                private elementary and secondary education schools'';
            (3) in subsection (a)(4)(B), by inserting ``that 
        demonstrates a need for a waiver or reduction'' before the 
        period at the end;
            (4) in subsection (a)(6), by inserting ``reflect the 
        purposes of this part and'' after ``shall'';
            (5) in subsection (a)(8), by striking ``may'' and inserting 
        ``shall''; and
            (6) by striking subsection (c).
    (e) Research; Studies; Annual Report.--Section 605(a) (20 U.S.C. 
1125(a)) is amended by inserting before the period at the end of the 
first sentence the following: ``, including the systematic collection, 
analysis and dissemination of data''.
    (f) Technological Innovation and Cooperation for Foreign 
Information Access.--Section 606 (20 U.S.C. 1126) is amended--
            (1) in subsection (a)--
                    (A) by striking ``or consortia of such institutions 
                or libraries'' and inserting ``museums, or consortia of 
                such entities'';
                    (B) by striking ``new''; and
                    (C) by inserting ``from foreign sources'' after 
                ``disseminate information'';
            (2) in subsection (b)--
                    (A) by inserting ``acquire and'' before 
                ``facilitate access'' in paragraph (1);
                    (B) by striking ``new means of'' in paragraph (3) 
                and inserting ``new means and standards for'';
                    (C) by striking ``and'' at the end of paragraph 
                (6);
                    (D) by striking the period at the end of paragraph 
                (7) and by inserting a semicolon; and
                    (E) by inserting after paragraph (7) the following 
                new paragraphs:
            ``(8) to establish linkages between grant recipients under 
        subsection (a) with libraries, museums, organizations, or 
        institutions of higher education located overseas to facilitate 
        carrying out the purposes of this section; and
            ``(9) to carry out other activities deemed by the Secretary 
        to be consistent with the purposes of this section.''; and
            (3) by adding at the end the following new subsection:
    ``(e) Special Rule.--The Secretary may waive or reduce the required 
non-Federal share for institutions that--
            ``(1) are eligible to receive assistance under part A or B 
        of title III or under title V; and
            ``(2) have submitted a grant application under this section 
        that demonstrates a need for a waiver or reduction.''.
    (g) Selection of Grant Recipients.--Section 607(b) (20 U.S.C. 
1125a(b)) is amended--
            (1) by striking out ``objectives'' and inserting 
        ``missions''; and
            (2) by adding at the end the following new sentence: ``In 
        keeping with the purposes of this part, the Secretary shall 
        take into account the degree to which activities of centers, 
        programs, and fellowships at institutions of higher education 
        advance national interests, generate and disseminate 
        information, and foster debate on American foreign policy from 
        diverse perspectives.''.
    (h) Equitable Distribution.--Section 608(a) (20 U.S.C. 1128(a)) is 
amended by adding at the end the following new sentence: ``Grants made 
under section 602 shall also reflect the purposes of this part.''.
    (i) Authorization of Appropriations.--Section 610 (20 U.S.C. 1128b) 
is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (j) Conforming Amendments.--Sections 603(a), 604(a)(5), and 612 (20 
U.S.C. 1123(a), 1124(a)(5), 1130-1) are each amended by striking 
``combinations'' each place it appears and inserting ``consortia''.

SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.

    (a) Centers for International Business Education.--Section 612 (20 
U.S.C. 1130-1) is amended--
            (1) in subsection (c)(1)(D), by inserting ``(including 
        those that are eligible to receive assistance under part A or B 
        of title III or under title V)'' after ``other institutions of 
        higher education''; and
            (2) in subsection (e), by adding at the end the following 
        new paragraph:
            ``(5) Special rule.--The Secretary may waive or reduce the 
        required non-Federal share for institutions that--
                    ``(A) are eligible to receive assistance under part 
                A or B of title III or under title V; and
                    ``(B) have submitted a grant application under this 
                section that demonstrates a need for a waiver or 
                reduction.''.
    (b) Education and Training Programs.--Section 613 (20 U.S.C. 1130a) 
is amended by adding at the end the following new subsection:
    ``(e) Special Rule.--The Secretary may waive or reduce the required 
non-Federal share for institutions that--
            ``(1) are eligible to receive assistance under part A or B 
        of title III or under title V; and
            ``(2) have submitted a grant application under this section 
        that demonstrates a need for a waiver or reduction.''.
    (c) Authorization of Appropriations.--Section 614 (20 U.S.C. 1130b) 
is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2006''; and
            (2) by striking ``4 succeeding'' each place it appears and 
        inserting ``5 succeeding''.

SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.

    (a) Foreign Service Professional Development.--Section 621 (20 
U.S.C. 1131) is amended--
            (1) by striking the heading of such section and inserting 
        the following:

``SEC. 621. PROGRAM FOR FOREIGN SERVICE PROFESSIONALS.'';

            (2) by striking the second sentence of subsection (a) and 
        inserting the following: ``The Institute shall conduct a 
        program to enhance the international competitiveness of the 
        United States by increasing the participation of 
        underrepresented populations in the international service, 
        including private international voluntary organizations and the 
        foreign service of the United States.'';
            (3) in subsection (b)(1), by striking subparagraphs (A) and 
        (B) and inserting the following:
                    ``(A) An Indian Tribal College or University or 
                Alaska Native and Native Hawaiian-serving institution 
                eligible for assistance under title III, an institution 
                eligible for assistance under part B of title III, or 
                an Hispanic-serving institution eligible for assistance 
                under title V.
                    ``(B) An institution of higher education which 
                serves substantial numbers of underrepresented 
                students.''; and
            (4) by striking subsection (e) and inserting the following:
    ``(e) Match Required.--The eligible recipient of a grant under this 
section shall contribute to the conduct of the program supported by the 
grant an amount from non-Federal sources equal to at least one-half of 
the amount of the grant. Such contribution may be in cash or in kind. 
The Secretary may waive or reduce the required non-Federal share for 
institutions that--
            ``(1) are eligible to receive assistance under part A or B 
        of title III or under title V; and
            ``(2) have submitted a grant application under this section 
        that demonstrates a need for a waiver or reduction.''.
    (b) Institutional Development.--Section 622 (20 U.S.C. 1131a) is 
amended by inserting before the period at the end of subsection (a) the 
following: ``and promote collaboration with colleges and universities 
that receive funds under this title''.
    (c) Study Abroad Program.--Section 623(a) (20 U.S.C. 1131b(a)) is 
amended by inserting after ``1978,'' the following: ``Alaska Native-
serving, Native Hawaiian-serving, and Hispanic-serving institutions,''.
    (d) Advanced Degree in International Relations.--Section 624 (20 
U.S.C. 1131b) is amended--
            (1) by striking ``masters'' in the heading of such section 
        and inserting ``advanced'';
            (2) by striking ``a masters degree in international 
        relations'' and inserting ``an advanced degree in international 
        relations, international affairs, international economics, or 
        other academic areas related to the Institute fellow's career 
        objectives''; and
            (3) by striking ``The masters degree program'' and 
        inserting ``The advanced degree study program shall be designed 
        by the consortia, consistent with the fellow's career 
        objectives, and''.
    (e) Internships.--Section 625 (20 U.S.C. 1131c) is amended--
            (1) in subsection (a), by inserting after ``1978,'' the 
        following: ``Alaska Native-serving, Native Hawaiian-serving, 
        and Hispanic-serving institutions,'';
            (2) in subsection (b)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of paragraph (2);
                    (B) by striking ``; and'' at the end of paragraph 
                (3) and inserting a period; and
                    (C) by striking paragraph (4); and
            (3) by amending subsection (c) to read as follows:
    ``(c) Ralph J. Bunche Fellows.--In order to assure the recognition 
and commitment of individuals from underrepresented student populations 
who demonstrate special interest in international affairs and language 
study, eligible students who participate in the internship programs 
authorized under (a) and (b) shall be known as the `Ralph J. Bunche 
Fellows'.''.
    (f) Report.--Section 626 (20 U.S.C. 1131d) is amended by striking 
``annually prepare a report'' and inserting ``prepare a report 
biennially''.
    (g) Authorization of Appropriations.--Section 628 (20 U.S.C. 1131f) 
is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 604. EVALUATION, OUTREACH, AND DISSEMINATION.

    Part D of title VI is amended by inserting after section 631 (20 
U.S.C. 1132) the following new section:

``SEC. 632. EVALUATION, OUTREACH, AND DISSEMINATION.

    ``The Secretary may use not more than 1 percent of the funds made 
available for this title for program evaluation, national outreach, and 
information dissemination activities.''.

SEC. 605. ADVISORY BOARD.

    Part D of title VI is amended by inserting after section 632 (as 
added by section 5) the following new section:

``SEC. 633. INTERNATIONAL HIGHER EDUCATION ADVISORY BOARD.

    ``(a) Establishment and Purpose.--
            ``(1) Establishment.--There is established in the 
        Department an independent International Higher Education 
        Advisory Board (hereafter in this section referred to as the 
        `International Advisory Board'). The International Advisory 
        Board shall provide advice, counsel and recommendations to the 
        Secretary and the Congress on international education issues 
        for higher education.
            ``(2) Purpose.--The purpose of the International Advisory 
        Board is--
                    ``(A) to provide expertise in the area of national 
                needs for proficiency in world regions, foreign 
                languages, and international affairs;
                    ``(B) to make recommendations that will promote the 
                excellence of international education programs and 
                result in the growth and development of such programs 
                at the postsecondary education level that will reflect 
                diverse perspectives and the full range of views on 
                world regions, foreign language, and international 
                affairs; and
                    ``(C) to advise the Secretary and the Congress with 
                respect to needs for expertise in government, the 
                private sector, and education in order to enhance 
                America's understanding of, and engagement in, the 
                world.
    ``(b) Independence of International Advisory Board.--In the 
exercise of its functions, powers, and duties, the International 
Advisory Board shall be independent of the Secretary and the other 
offices and officers of the Department. Except as provided in this 
subsection and subsection (f), the recommendations of the International 
Advisory Board shall not be subject to review or approval by any 
officer of the Federal Government. Nothing in this title shall be 
construed to authorize the International Advisory Board to mandate, 
direct, or control an institution of higher education's specific 
instructional content, curriculum, or program of instruction. The Board 
is authorized to study, monitor, apprise, and evaluate a sample of 
activities supported under this title in order to provide 
recommendations to the Secretary and the Congress for the improvement 
of programs under the title and to ensure programs meet the purposes of 
the title. The recommendations of the Board may address any area in 
need of improvement, except that any recommendation of specific 
legislation to Congress shall be made only if the President deems it 
necessary and expedient.
    ``(c) Membership.--
            ``(1) Appointment.--The International Advisory Board shall 
        have 7 members of whom--
                    ``(A) 3 members shall be appointed by the 
                Secretary;
                    ``(B) 2 members shall be appointed by the Speaker 
                of the House of Representatives, upon the 
                recommendation of the Majority Leader and the Minority 
                Leader; and
                    ``(C) 2 members shall be appointed by the President 
                pro tempore of the Senate, upon the recommendation of 
                the Majority Leader and the Minority Leader.
            ``(2) Representation.--Two of the members appointed by the 
        Secretary under paragraph (1)(A) shall be appointed to 
        represent Federal agencies that have national security 
        responsibilities, after consultation with the heads of such 
        agencies. The members of the International Advisory Board shall 
        also include (but not be limited to) representatives of States, 
        institutions of higher education, cultural organizations, 
        educational organizations, local education agencies, students, 
        and private citizens with expertise in international concerns.
            ``(3) Qualification.--Members of the International Advisory 
        Board shall be individuals who have technical qualifications, 
        professional standing, experience working in international 
        affairs or foreign service occupations, or demonstrated 
        knowledge in the fields of higher education and international 
        education, including foreign languages, world regions, or 
        international affairs.
    ``(d) Functions of the Committee.--
            ``(1) In general.--The International Advisory Board shall 
        provide recommendations in accordance with subsection (b) 
        regarding improvement of programs under this title to the 
        Secretary and the Congress for their review. The Board may--
                    ``(A) review and comment upon the regulations for 
                grants under this title;
                    ``(B) monitor, apprise, and evaluate a sample of 
                activities supported under this title based on the 
                purposes and objectives of this title in order to 
                provide recommendations for improvement of the programs 
                under this title;
                    ``(C) make recommendations that will assist the 
                Secretary and the Congress to improve the programs 
                under this title to better reflect the national needs 
                related to the homeland security, international 
                education, and international affairs, including an 
                assessment of the national needs and the training 
                provided by the institutions of higher education that 
                receive a grant under this title for expert and non-
                expert level foreign language training;
                    ``(D) make recommendations to the Secretary and the 
                Congress regarding such studies, surveys, and analyses 
                of international education that will provide feedback 
                about the programs under this title and assure that 
                their relative authorized activities reflect diverse 
                perspectives and the full range of views on world 
                regions, foreign languages, and international affairs;
                    ``(E) make recommendations that will strengthen the 
                partnerships between local educational agencies, public 
                and private elementary and secondary education schools, 
                and grant recipients under this title to ensure that 
                the research and knowledge about world regions, foreign 
                languages, and international affairs is widely 
                disseminated to local educational agencies;
                    ``(F) make recommendations on how institutions of 
                higher education that receive a grant under this title 
                can encourage students to serve the nation and meet 
                national needs in an international affairs, 
                international business, foreign language, or national 
                security capacity;
                    ``(G) make recommendations on how linkages between 
                institutions of higher education and public and private 
                organizations that are involved in international 
                education, language training, and international 
                research capacities to fulfill manpower and information 
                needs of United States businesses; and
                    ``(H) make recommendations to the Secretary and the 
                Congress about opportunities for underrepresented 
                populations in the areas of international relations, 
                international affairs, and international economics, in 
                order to effectively carry out the activities of the 
                Institute under part C.
            ``(2) Hearings.--The International Advisory Board shall 
        provide for public hearing and comment regarding the matter 
        contained in the recommendations described in paragraph (1), 
        prior to the submission of those recommendations to Secretary 
        and the Congress.
    ``(e) Operations of the Committee.--
            ``(1) Terms.--Each member of the International Advisory 
        Board shall be appointed for a term of 3 years, except that, of 
        the members first appointed (A) 4 shall be appointed for a term 
        of 3 years, and (B) 3 shall be appointed for a term of 4 years, 
        as designated at the time of appointment by the Secretary. A 
        member of the International Advisory Board may be reappointed 
        to successive terms on the International Advisory Board.
            ``(2) Vacancies.--Any member appointed to fill a vacancy 
        occurring prior to the expiration of the term of a predecessor 
        shall be appointed only for the remainder of such term. A 
        member of the International Advisory Board shall, upon the 
        Secretary's request, continue to serve after the expiration of 
        a term until a successor has been appointed.
            ``(3) No governmental members.--Except for the members 
        appointed by the Secretary under subsection (c)(1)(A), no 
        officers or full-time employees of the Federal Government shall 
        serve as members of the International Advisory Board.
            ``(4) Meetings.--The International Advisory Board shall 
        meet not less than once each year. The International Advisory 
        Board shall hold additional meetings at the call of the Chair 
        or upon the written request of not less than 3 voting members 
        of the International Advisory Board.
            ``(5) Quorum.--A majority of the voting members of the 
        Board serving at the time of a meeting shall constitute a 
        quorum.
            ``(6) Chair.--The International Advisory Board shall elect 
        a Chairman or Chairwoman from among the members of the 
        International Advisory Board.
    ``(f) Submission to Department for Comment.--The International 
Advisory Board shall submit its proposed recommendations to the 
Secretary of Education for comment for a period not to exceed 30 days 
in each instance.
    ``(g) Personnel and Resources.--
            ``(1) Compensation and expense.--Members of the 
        International Advisory Committee shall serve without pay for 
        such service. Members of the International Advisory Board who 
        are officers or employees of the United States may not receive 
        additional pay, allowances, or benefits by reason of their 
        service on the International Advisory Board. Members of the 
        International Advisory Board may each receive reimbursement for 
        travel expenses incident to attending International Advisory 
        Board meetings, including per diem in lieu of subsistence, as 
        authorized by section 5703 of title 5, United States Code, for 
        persons in the Government service employed intermittently.
            ``(2) Personnel.--The International Advisory Board may 
        appoint such personnel as may be determined necessary by the 
        Chairman without regard to the provisions of title 5, United 
        States Code, governing appointments in the competitive service, 
        and may be paid without regard to the provisions of chapter 51 
        and subchapter III of chapter 53 of such title relating to 
        classification and General Schedule pay rates, but no 
        individual so appointed shall be paid in excess of the rate 
        authorized for GS-18 of the General Schedule. The International 
        Advisory Board may appoint not more than 1 full-time 
        equivalent, nonpermanent, consultant without regard to the 
        provisions of title 5, United States Code. The International 
        Advisory Board shall not be required by the Secretary to reduce 
        personnel to meet agency personnel reduction goals.
            ``(3) Consultation.--In carrying out its duties under the 
        Act, the International Advisory Board shall consult with other 
        Federal agencies, representatives of State and local 
        governments, and private organizations to the extent feasible.
            ``(4) Assistance from other agencies.--
                    ``(A) Information.--The International Advisory 
                Board is authorized to secure directly from any 
                executive department, bureau, agency, board, 
                commission, office, independent establishment, or 
                instrumentality information, suggestions, estimates, 
                and statistics for the purpose of this section and each 
                such department, bureau, agency, board, commission, 
                office, independent establishment, or instrumentality 
                is authorized and directed, to the extent permitted by 
                law, to furnish such information, suggestions, 
                estimates, and statistics directly to the International 
                Advisory Board, upon request made by the Chairman.
                    ``(B) Services and personnel.--The head of each 
                Federal agency shall, to the extent not prohibited by 
                law, consult with the International Advisory Board in 
                carrying out this section. The International Advisory 
                Board is authorized to utilize, with their consent, the 
                services, personnel, information, and facilities of 
                other Federal, State, local, and private agencies with 
                or without reimbursement.
            ``(5) Contracts; experts and consultants.--The 
        International Advisory Board may enter into contracts for the 
        acquisition of information, suggestions, estimates, and 
        statistics for the purpose of this section. The International 
        Advisory Board is authorized to obtain the services of experts 
        and consultants without regard to section 3109 of title 5, 
        United States Code and to set pay in accordance with such 
        section.
    ``(h) Termination.--Notwithstanding the sunset and charter 
provisions of the Federal Advisory Committee Act (5 U.S.C. App. I) or 
any other statute or regulation, the International Advisory Committee 
shall be authorized through September 30, 2012.
    ``(i) Funds.--The Secretary shall use not more than one-half of the 
funds available to the Secretary under section 632 to carry out this 
section.''.

SEC. 606. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING 
              INFORMATION; SAFETY.

    Part D of title VI is amended by inserting after section 633 (as 
added by section 6) the following new sections:

``SEC. 634. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING 
              INFORMATION.

    ``Each institution of higher education that receives a grant under 
this title shall assure that--
            ``(1) recruiters of the United States Government and 
        agencies thereof are given the same access to students as is 
        provided generally to other institutions of higher education 
        and prospective employers of those students for the purpose of 
        recruiting for graduate opportunities or prospective 
        employment; and
            ``(2) no undue restrictions are placed upon students that 
        seek employment with the United States Government or any agency 
        thereof.

``SEC. 635. STUDENT SAFETY.

    ``Applicants seeking funds under this title to support student 
travel and study abroad shall submit as part of their grant application 
a description of safety policies and procedures for students 
participating in the program while abroad.''.

SEC. 607. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.

    Part D of title VI is further amended by inserting after section 
635 (as added by section 7) the following new section:

``SEC. 636. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.

    ``(a) Study.--The Secretary of Education, in consultation with the 
International Advisory Board, shall conduct a study to identify foreign 
language heritage communities, particularly such communities that 
include speakers of languages that are critical to the national 
security of the United States.
    ``(b) Foreign Language Heritage Community.--For purposes of this 
section, the term `foreign language heritage community' means a 
community of residents or citizens of the United States who are native 
speakers of, or who have partial fluency in, a foreign language.
    ``(c) Report.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Education shall submit a report 
to the Congress on the results of the study conducted under this 
section.''.

                    TITLE VII--TITLE VII AMENDMENTS

SEC. 701. JAVITS FELLOWSHIP PROGRAM.

    (a) Interruptions of Study.--Section 701(c) (20 U.S.C. 1134(c)) is 
amended by adding at the end the following new sentence: ``In the case 
of other exceptional circumstances, such as active duty military 
service or personal or family member illness, the institution of higher 
education may also permit the fellowship recipient to interrupt periods 
of study for the duration of the tour of duty (in the case of military 
service) or not more than 12 months (in any other case), but without 
payment of the stipend.''.
    (b) Allocation of Fellowships.--Section 702(a)(1) (20 U.S.C. 
1134a(a)(1)) is amended--
            (1) in the first sentence, by inserting ``from diverse 
        geographic regions'' after ``higher education''; and
            (2) by adding at the end the following new sentence: ``The 
        Secretary shall also assure that at least one representative 
        appointed to the Board represents an institution that is 
        eligible for a grant under title III or V of this Act.''.
    (c) Stipends.--Section 703 (20 U.S.C. 1134b(a)) is amended--
            (1) in subsection (a)--
                    (A) by striking ``1999-2000'' and inserting ``2006-
                2007'';
                    (B) by striking ``shall be set'' and inserting 
                ``may be set''; and
                    (C) by striking ``Foundation graduate fellowships'' 
                and inserting ``Foundation Graduate Research Fellowship 
                Program''; and
            (2) in subsection (b), by amending paragraph (1)(A) to read 
        as follows:
            ``(1) In general.--(A) The Secretary shall (in addition to 
        stipends paid to individuals under this subpart) pay to the 
        institution of higher education, for each individual awarded a 
        fellowship under this subpart at such institution, an 
        institutional allowance. Except as provided in subparagraph 
        (B), such allowance shall be, for 2006-2007 and succeeding 
        academic years, the same amount as the institutional payment 
        made for 2005-2006 adjusted for 2006-2007 and annually 
        thereafter in accordance with inflation as determined by the 
        Department of Labor's Consumer Price Index for the previous 
        calendar year.''.
    (d) Authorization of Appropriations.--Section 705 (20 U.S.C. 1134d) 
is amended by striking ``fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``fiscal year 2006 and such sums as may be necessary for each of the 5 
succeeding fiscal years''.

SEC. 702. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

    (a) Designation of Areas of National Need; Priority.--Section 712 
(20 U.S.C. 1135a) is amended--
            (1) in the last sentence of subsection (b)--
                    (A) by striking ``and an assessment'' and inserting 
                ``an assessment''; and
                    (B) by inserting before the period at the end the 
                following: ``, and the priority described in subsection 
                (c) of this section''; and
            (2) by adding at the end the following new subsection:
    ``(c) Priority.--The Secretary shall establish a priority for 
grants in order to prepare individuals for the professoriate who will 
train highly-qualified elementary and secondary school teachers of 
math, science, and special education, and teachers who provide 
instruction for limited English proficient individuals. Such grants 
shall offer program assistance and graduate fellowships for--
            ``(1) post-baccalaureate study related to teacher 
        preparation and pedagogy in math and science for students who 
        have completed a master's degree or are pursuing a doctorate of 
        philosophy in math and science;
            ``(2) post-baccalaureate study related to teacher 
        preparation and pedagogy in special education and English 
        language acquisition and academic proficiency for limited 
        English proficient individuals; and
            ``(3) support of dissertation research in the fields of 
        math, science, special education, or second language pedagogy 
        and second language acquisition.''.
    (b) Collaboration Required for Certain Applications.--Section 
713(b) (20 U.S.C. 1135b) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by redesignating paragraph (10) as paragraph (11); and
            (3) by inserting after paragraph (9) the following new 
        paragraph:
            ``(10) in the case of an application for a grant by a 
        department, program, or unit in education or teacher 
        preparation, contain assurances that such department, program, 
        or unit collaborates with departments, programs, or units in 
        all content areas to assure a successful combination of 
        training in both teaching and such content; and''.
    (c) Stipends.--Section 714(b) (20 U.S.C. 1135c(b)) is amended--
            (1) by striking ``1999-2000'' and inserting ``2006-2007'';
            (2) by striking ``shall be set'' and inserting ``may be 
        set''; and
            (3) by striking ``Foundation graduate fellowships'' and 
        inserting ``Foundation Graduate Research Fellowship Program''.
    (d) Additional Assistance.--Section 715(a)(1) (20 U.S.C. 
1135d(a)(1)) is amended--
            (1) by striking ``1999-2000'' and inserting ``2006-2007''; 
        and
            (2) by striking ``1998-1999'' and inserting ``2006-2007''.
    (e) Authorization of Appropriations.--Section 716 (20 U.S.C. 1135e) 
is amended by striking ``fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``fiscal year 2006 and such sums as may be necessary for each of the 5 
succeeding fiscal years''.
    (f) Technical Amendments.--Section 714(c) (20 U.S.C. 1135c(c)) is 
amended--
            (1) by striking ``section 716(a)'' and inserting ``section 
        715(a)''; and
            (2) by striking ``section 714(b)(2)'' and inserting 
        ``section 713(b)(2)''.

SEC. 703. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

    (a) Contract and Grant Purposes.--Section 721(c) (20 U.S.C. 
1136(c)) is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) to prepare such students for study at accredited law 
        schools and assist them with the development of analytical 
        skills and study methods to enhance their success and promote 
        completion of law school;'';
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(6) to award Thurgood Marshall Fellowships to eligible 
        law school students--
                    ``(A) who participated in summer institutes 
                authorized by subsection (d) and who are enrolled in an 
                accredited law school; or
                    ``(B) who are eligible law school students who have 
                successfully completed a comparable summer institute 
                program certified by the Council on Legal Educational 
                Opportunity.''.
    (b) Services Provided.--Section 721(d)(1)(D) (20 U.S.C. 
1136(d)(1)(D)) is amended by inserting ``in analytical skills and study 
methods'' after ``courses''.
    (c) Authorization of Appropriations.--Section 721(h) (20 U.S.C. 
1136(h)) is amended by striking ``1999 and each of the 4 succeeding 
fiscal years'' and inserting ``2006 and each of the 5 succeeding fiscal 
years''.
    (d) General Provisions.--Subsection (e) of section 731 (20 U.S.C. 
1137(e)) is repealed.

SEC. 704. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

    (a) Contract and Grant Purposes.--Section 741(a) (20 U.S.C. 
1138(a)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) the encouragement of the reform and improvement of, 
        and innovation in, postsecondary education and the provision of 
        educational opportunity for all, especially for the non-
        traditional student populations;'';
            (2) in paragraph (2), by inserting before the semicolon at 
        the end the following: ``for postsecondary students, especially 
        those that provide academic credit for programs'';
            (3) by amending paragraph (3) to read as follows:
            ``(3) the establishment of institutions and programs based 
        on the technology of communications, including delivery by 
        distance education;''; and
            (4) by amending paragraph (6) to read as follows:
            ``(6) the introduction of institutional reforms designed to 
        expand individual opportunities for entering and reentering 
        postsecondary institutions and pursuing programs of 
        postsecondary study tailored to individual needs;''.
    (b) Areas of National Need.--Section 744(c) (20 U.S.C. 1138c(c)) is 
amended by striking paragraph (4) and inserting the following:
            ``(4) International cooperation, partnerships, or student 
        exchange among postsecondary educational institutions in the 
        United States and abroad.
            ``(5) Establishment of academic programs including graduate 
        and undergraduate courses, seminars and lectures, support of 
        research, and development of teaching materials for the purpose 
        of supporting faculty and academic programs that teach 
        traditional American history (including significant 
        constitutional, political, intellectual, economic, diplomatic, 
        and foreign policy trends, issues, and documents; the history, 
        nature, and development of democratic institutions of which 
        American democracy is a part; and significant events and 
        individuals in the history of the United States).
            ``(6) Support for planning, applied research, training, 
        resource exchanges or technology transfers, the delivery of 
        services, or other activities the purpose of which is to design 
        and implement programs to enable institutions of higher 
        education to work with private and civic organizations to 
        assist communities to meet and address their pressing and 
        severe problems, including economic development, community 
        infrastructure and housing, crime prevention, education, 
        healthcare, self sufficiency, and workforce preparation.''.
    (c) Authorization of Appropriations.--Section 745 (20 U.S.C. 1138d) 
is amended by striking ``$30,000,000 for fiscal year 1999 and such sums 
as may be necessary for each of the 4 succeeding fiscal years'' and 
inserting ``$40,000,000 for fiscal year 2006 and such sums as may be 
necessary for each of the 5 succeeding fiscal years'' .

SEC. 705. URBAN COMMUNITY SERVICE.

    Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.

SEC. 706. DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH DISABILITIES 
              RECEIVE A QUALITY HIGHER EDUCATION.

    (a) Serving All Students With Disabilities.--Section 762(a) (20 
U.S.C. 1140a(a)) is amended by striking ``students with learning 
disabilities'' and inserting ``students with disabilities''.
    (b) Authorized Activities.--
            (1) Amendment.--Section 762(b)(2) is amended--
                    (A) in subparagraph (A), by inserting ``in order to 
                improve retention and completion'' after 
                ``disabilities'';
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (E), respectively;
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Effective transition practices.--The 
                development of innovative, effective, and efficient 
                teaching methods and strategies to ensure the smooth 
                transition of students with disabilities from high 
                school to postsecondary education.''; and
                    (D) by inserting after subparagraph (C) (as 
                redesignated by subparagraph (B) of this paragraph) the 
                following new subparagraph:
                    ``(D) Distance learning.--The development of 
                innovative, effective, and efficient teaching methods 
                and strategies to provide faculty and administrators 
                with the ability to provide accessible distance 
                education programs or classes that would enhance access 
                of students with disabilities to higher education, 
                including the use of electronic communication for 
                instruction and advisement.''.
            (2) Conforming amendment.--Section 762(b)(3) is amended by 
        striking ``subparagraphs (A) through (C)'' and inserting 
        ``subparagraphs (A) through (E)''.
    (c) Applications.--Section 763 (20 U.S.C. 1140b) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) a description of how such institution plans to 
        address the activities allowed under this part;'';
            (2) by striking ``and'' at the end of paragraph (2);
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) a description of the extent to which an institution 
        will work to replicate the best practices of institutions of 
        higher education with demonstrated success in serving students 
        with disabilities.''.
    (d) Authorization of Appropriations.--Section 765 (20 U.S.C. 1140d) 
is amended by striking ``fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``fiscal year 2006 and such sums as may be necessary for each of the 5 
succeeding fiscal years''.

                    TITLE VIII--CLERICAL AMENDMENTS

SEC. 801. CLERICAL AMENDMENTS.

    (a) Definition.--Section 103 (20 U.S.C. 1003) is amended--
            (1) by redesignating paragraphs (1) through (16) as 
        paragraphs (2) through (17), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph:
            ``(1) Authorizing committees.--The term `authorizing 
        committees' means the Committee on Health, Education, Labor, 
        and Pensions of the Senate and the Committee on Education and 
        the Workforce of the House of Representatives.''.
    (b) Committees.--
            (1) The following provisions are each amended by striking 
        ``Committee on Labor and Human Resources of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives'' and inserting ``authorizing committees'':
                    (A) Section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)).
                    (B) Section 131(c)(4) (20 U.S.C. 1015(c)(4)).
                    (C) Section 206(d) (20 U.S.C. 1026(d)).
                    (D) Section 207(c)(1) (20 U.S.C. 1027(c)(1)).
                    (E) Section 428(g) (20 U.S.C. 1078(g)).
                    (F) Section 428A(a)(4) (20 U.S.C. 1078-1(a)(4)).
                    (G) Section 428A(c)(2) (20 U.S.C. 1078-1(c)(2)).
                    (H) Section 428A(c)(3) (20 U.S.C. 1078-1(c)(3)).
                    (I) Section 428A(c)(5) (20 U.S.C. 1078-1(c)(5)).
                    (J) Section 455(b)(8)(B) (20 U.S.C. 
                1087e(b)(8)(B)).
                    (K) Section 483(c) (20 U.S.C. 1090(c)).
                    (L) Section 486(e) (20 U.S.C. 1093(e)).
                    (M) Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).
                    (N) Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).
                    (O) Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).
                    (P) Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).
                    (Q) Section 487A(b)(3)(B) (20 U.S.C. 
                1094a(b)(3)(B)).
                    (R) Section 498B(d)(1) (20 U.S.C. 1099c-2(d)(1)).
                    (S) Section 498B(d)(2) (20 U.S.C. 1099c-2(d)(2)).
            (2) The following provisions are each amended by striking 
        ``Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Labor and Human Resources 
        of the Senate'' and inserting ``authorizing committees'':
                    (A) Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).
                    (B) Section 428(n)(4) (20 U.S.C. 1078(n)(4)).
                    (C) Section 437(c)(1) (20 U.S.C. 1087(c)(1)).
                    (D) Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).
                    (E) Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).
            (3) Section 206(a) (20 U.S.C. 1026(a)) is amended by 
        striking ``, the Committee on Labor and Human Resources of the 
        Senate, and the Committee on Education and the Workforce of the 
        House of Representatives'' and inserting ``and the authorizing 
        committees''.
            (4) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by 
        striking ``Committee on Appropriations and the Committee on 
        Labor and Human Resources of the Senate and the Committee on 
        Appropriations and the Committee on Education and the Workforce 
        of the House of Representatives'' and inserting ``Committees on 
        Appropriations of the Senate and House of Representatives and 
        the authorizing committees''.
            (5) Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is 
        amended by striking ``House Committee on Education and the 
        Workforce and the Senate Committee on Labor and Human 
        Resources'' and inserting ``authorizing committees''.
            (6) Section 428I(h) (20 U.S.C. 1078-9(h)) is amended by 
        striking ``Chairman of the Senate Labor and Human Resources 
        Committee and the House Committee on Education and Labor'' and 
        inserting ``chairpersons of the authorizing committees''.
            (7) Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is 
        amended by striking ``Committee on Education and the Workforce 
        of the House of Representatives or the Committee on Labor and 
        Human Resources of the Senate'' and inserting ``either of the 
        authorizing committees''.
            (8) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087-
        2(d)(1)(E)(iii)) is amended by striking ``Chairman and the 
        Ranking Member on the Committee on Labor and Human Resources of 
        the Senate and the Chairman and the Ranking Member of the 
        Committee on Education and Labor of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (9) Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C. 
        1087-2(r)) are each amended by striking ``Chairman and ranking 
        minority member of the Committee on Labor and Human Resources 
        of the Senate, the Chairman and ranking minority member of the 
        Committee on Education and Labor of the House of 
        Representatives,'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (10) Paragraphs (5)(B) and (10) of section 439(r) (20 
        U.S.C. 1087-2(r)) are each amended by striking ``Chairman and 
        ranking minority member of the Senate Committee on Labor and 
        Human Resources and to the Chairman and ranking minority member 
        of the House Committee on Education and Labor'' and inserting 
        ``chairpersons and ranking minority members of the authorizing 
        committees''.
            (11) Section 439(r)(6)(B) (20 U.S.C. 1087-2(r)(6)(B)) is 
        amended by striking ``Chairman and ranking minority member of 
        the Committee on Labor and Human Resources of the Senate and to 
        the Chairman and ranking minority member of the Committee on 
        Education and Labor of the House of Representatives'' and 
        inserting ``chairpersons and ranking minority members of the 
        authorizing committees''.
            (12) Section 439(s)(2)(A) (20 U.S.C. 1087-2(s)(2)(A)) is 
        amended by striking ``Chairman and Ranking Member of the 
        Committee on Labor and Human Resources of the Senate and the 
        Chairman and Ranking Member of the Committee on Economic and 
        Educational Opportunities of the House of Representatives'' and 
        inserting ``chairpersons and ranking minority members of the 
        authorizing committees''.
            (13) Section 439(s)(2)(B) (20 U.S.C. 1087-2(s)(2)(B)) is 
        amended by striking ``Chairman and Ranking Minority Member of 
        the Committee on Labor and Human Resources of the Senate and 
        Chairman and Ranking Minority Member of the Committee on 
        Economic and Educational Opportunities of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (14) Section 482(d) (20 U.S.C. 1089(d)) is amended by 
        striking ``Committee on Labor and Human Resources of the Senate 
        and the Committee on Education and Labor of the House of 
        Representatives'' and inserting ``authorizing committees''.
    (c) Additional Clerical Amendments.--
            (1) Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C. 
        1075(a)(2)(A)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (2) Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is 
        amended by striking ``428A or''.
            (3) Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C. 
        1078(b)(1)(B)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (4) Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is 
        amended by striking ``sections 428A and 428B'' and inserting 
        ``section 428B or 428H''.
            (5) Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is 
        amended by striking ``428A, 428B,'' and inserting ``428B''.
            (6) Section 428G(c)(2) (20 U.S.C. 1078-7(c)(2)) is amended 
        by striking ``428A'' and inserting ``428H''.
            (7) The heading for section 433(e) (20 U.S.C. 1083(e)) is 
        amended by striking ``SLS Loans And''.
            (8) Section 433(e) (20 U.S.C. 1083(e)) is amended by 
        striking ``428A, 428B,'' and inserting ``428B''.
            (9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended--
                    (A) by inserting ``or'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).
            (10) Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is 
        amended by striking ``428A(d), 428B(d), 428C,'' and inserting 
        ``428B(d), 428C, 428H,''.
            (11) Section 435(m) (20 U.S.C. 1085(m)) is amended--
                    (A) in paragraph (1)(A), by striking ``, 428A,''; 
                and
                    (B) in paragraph (2)(D), by striking ``428A'' each 
                place it appears and inserting ``428H''.
            (12) Section 438(b)(2)(D) (20 U.S.C. 1087-1(b)(2)(D)) is 
        amended by striking ``division (i) of this subparagraph'' and 
        inserting ``clause (i) of this subparagraph''.
            (13) Section 438(c)(6) (20 U.S.C. 1087-1(c)(6)) is 
        amended--
                    (A) by striking ``Sls and plus'' in the heading and 
                inserting ``Plus''; and
                    (B) by striking ``428A or''.
            (14) Section 438(c)(7) (20 U.S.C. 1087-1(c)(7)) is amended 
        by striking ``428A or''.
            (15) Nothing in the amendments made by this subsection 
        shall be construed to alter the terms, conditions, and benefits 
        applicable to Federal supplemental loans for students (``SLS 
        loans'') under section 428A as in effect prior to July 1, 1994 
        (20 U.S.C. 1078-1).

              TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

    (a) General Authority.--Section 104(a)(1)(A) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4304(a)(1)(A)) is amended by inserting 
after ``maintain and operate'' the following: ``, at the Laurent Clerc 
National Deaf Education Center,''.
    (b) Administrative Requirements.--
            (1) In general.--Section 104(b) of the Education of the 
        Deaf Act of 1986 (20 U.S.C. 4304(b)) is amended--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (1), by striking ``elementary and secondary 
                education programs'' and inserting ``Laurent Clerc 
                National Deaf Education Center''; and
                    (B) in paragraph (2), by striking ``elementary and 
                secondary education programs'' and inserting ``Laurent 
                Clerc National Deaf Education Center''.
            (2) Academic content standards, achievement standards, and 
        assessments.--Section 104(b) of the Education of the Deaf Act 
        of 1986 (20 U.S.C. 4304(b)) is amended by adding at the end the 
        following new paragraph:
    ``(5) The University, in consultation with the Secretary, shall--
            ``(A) not later than one year after the date of the 
        enactment of the College Access and Opportunity Act of 2005, 
        adopt and implement academic content standards, academic 
        achievement standards, and academic assessments as described in 
        section 1111(b) of the Elementary and Secondary Education Act 
        of 1965 for the Laurent Clerc National Deaf Education Center;
            ``(B) develop adequate yearly progress standards for the 
        Center as described in section 1111(b)(2)(C) of such Act; and
            ``(C) make available to the public the results of such 
        assessments, except in such case in which such reporting would 
        not yield statistically reliable information or would reveal 
        personally identifiable information about an individual 
        student.''.

SEC. 902. AUTHORITY.

    Section 111 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4331) is amended by striking ``the institution of higher education with 
which the Secretary has an agreement under this part'' and inserting 
``the Rochester Institute of Technology''.

SEC. 903. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

    (a) General Authority.--Section 112(a) of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4332(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence--
                            (i) by striking ``an institution of higher 
                        education'' and inserting ``the Rochester 
                        Institute of Technology, Rochester, New 
                        York,''; and
                            (ii) by striking ``of a'' and inserting 
                        ``of the''; and
                    (B) by striking the second sentence; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``the institution of higher education with 
                which the Secretary has an agreement under this 
                section'' and inserting ``the Rochester Institute of 
                Technology''; and
                    (B) in subparagraph (B), by striking ``the 
                institution'' and inserting ``the Rochester Institute 
                of Technology''.
    (b) Provisions of Agreement.--Section 112(b) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4332(b)) is amended--
            (1) in paragraph (2), by striking ``or other governing body 
        of the institution'' and inserting ``of the Rochester Institute 
        of Technology''; and
            (2) in paragraph (3)--
                    (A) by striking ``or other governing body of the 
                institution'' and inserting ``of the Rochester 
                Institute of Technology'';
                    (B) by striking ``the institution of higher 
                education under the agreement with the Secretary'' and 
                inserting ``the Rochester Institute of Technology by 
                the National Technical Institute for the Deaf''; and
                    (C) by striking ``Committee on Education and Labor 
                of the House of Representatives and to the Committee on 
                Labor and Human Resources of the Senate'' and inserting 
                ``Committee on Education and the Workforce of the House 
                of Representatives and to the Committee on Health, 
                Education, Labor, and Pensions of the Senate''.
    (c) Limitation.--Section 112(c) of the Education of the Deaf Act of 
1986 (20 U.S.C. 4332(c)) is amended in paragraphs (1) and (2) by 
striking ``institution'' each place it appears and inserting 
``Rochester Institute of Technology''.

SEC. 904. DEFINITIONS.

    Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4351) is amended--
            (1) by striking paragraph (3);
            (2) by redesignating paragraphs (4) through (7) as 
        paragraphs (3) through (6), respectively; and
            (3) by adding at the end the following new paragraph:
            ``(7) The term `RIT' means the Rochester Institute of 
        Technology.''.

SEC. 905. AUDIT.

    (a) Government Accountability Office Authority.--Section 203(a) of 
the Education of the Deaf Act of 1986 (20 U.S.C. 4353(a)) is amended--
            (1) in the heading, by striking ``General Accounting 
        Office'' and inserting ``Government Accountability Office''; 
        and
            (2) in the matter following paragraph (2), by striking 
        ``General Accounting Office'' and inserting ``Government 
        Accountability Office''.
    (b) Independent Financial and Compliance Audit.--Section 203(b)(1) 
of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(1)) is 
amended by striking the second sentence and inserting the following: 
``NTID shall have an annual independent financial and compliance audit 
made of RIT programs and activities, including NTID programs and 
activities.''.
    (c) Compliance.--Section 203(b)(2) of the Education of the Deaf Act 
of 1986 (20 U.S.C. 4353(b)(2)) is amended by striking ``sections'' and 
all that follows through ``section 207'' and inserting ``sections 
102(b), 105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c) 
through (f) of section 207''.
    (d) Submission of Audits.--Section 203(b)(3) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4353(b)(3)) is amended--
            (1) by inserting after ``Secretary'' the following: ``and 
        the Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate''; and
            (2) by striking ``or the institution authorized to 
        establish and operate the NTID under section 112(a)'' and 
        inserting ``or RIT''.
    (e) Limitations Regarding Expenditure of Funds.--Section 
203(c)(2)(A) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4353(c)(2)(A)) is amended in the fifth sentence by striking ``the 
Committee on Education and Labor of the House of Representatives and 
the Committee on Labor and Human Resources of the Senate'' and 
inserting ``the Committee on Education and the Workforce of the House 
of Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate''.

SEC. 906. REPORTS.

    (a) Technical Amendments.--Section 204 of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4354) is amended in the matter preceding 
paragraph (1)--
            (1) by striking ``or other governing body of the 
        institution of higher education with which the Secretary has an 
        agreement under section 112'' and inserting ``of RIT''; and
            (2) by striking ``Committee on Education and Labor of the 
        House of Representatives and the Committee on Labor and Human 
        Resources of the Senate'' and inserting ``Committee on 
        Education and the Workforce of the House of Representatives and 
        the Committee on Health, Education, Labor, and Pensions of the 
        Senate''.
    (b) Contents of Report.--Section 204 of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4354) is amended--
            (1) in paragraph (2)(C), by striking ``upon graduation/
        completion'' and inserting ``within one year of graduation/
        completion''; and
            (2) in paragraph (3)(B), by striking ``of the institution 
        of higher education with which the Secretary has an agreement 
        under section 112, including specific schedules and analyses 
        for all NTID funds, as required under section 203'' and 
        inserting ``of RIT programs and activities''.

SEC. 907. LIAISON FOR EDUCATIONAL PROGRAMS.

    Section 206(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4356(a)) is amended by striking ``Not later than 30 days after the date 
of enactment of this Act, the'' and inserting ``The''.

SEC. 908. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE 
              NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

    Section 207(a)(2) of the Education of the Deaf Act of 1986 (20 
U.S.C. 4357(a)(2)) is amended by striking ``or other governing body of 
the institution of higher education with which the Secretary has an 
agreement under section 112'' and inserting ``of RIT''.

SEC. 909. OVERSIGHT AND EFFECT OF AGREEMENTS.

    Section 208(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4359(a)) is amended--
            (1) by striking ``the institution of higher education with 
        which the Secretary has an agreement under part B of title I'' 
        and inserting ``RIT''; and
            (2) by striking ``Committee on Labor and Human Resources of 
        the Senate and the Committee on Education and Labor of the 
        House of Representatives'' and inserting ``Committee on 
        Education and the Workforce of the House of Representatives and 
        the Committee on Health, Education, Labor, and Pensions of the 
        Senate''.

SEC. 910. AUTHORIZATION OF APPROPRIATIONS.

    (a) Monitoring and Evaluation Activities.--Section 205(c) of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4355(c)) is amended by 
striking ``fiscal years 1998 through 2003'' and inserting ``fiscal 
years 2006 through 2011''.
    (b) Federal Endowment Programs for Gallaudet University and the 
National Technical Institute for the Deaf.--Section 207(h) of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4357(h)) is amended in 
paragraphs (1) and (2) by striking ``fiscal years 1998 through 2003'' 
each place it appears and inserting ``fiscal years 2006 through 2011''.
    (c) General Authorization of Appropriations.--Section 212 of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--
            (1) in the matter preceding paragraph (1) in subsection 
        (a), by striking ``fiscal years 1998 through 2003'' and 
        inserting ``fiscal years 2006 through 2011''; and
            (2) in subsection (b), by striking ``fiscal years 1998 
        through 2003'' and inserting ``fiscal years 2006 through 
        2011''.

                   PART B--ADDITIONAL EDUCATION LAWS

SEC. 921. AMENDMENT TO HIGHER EDUCATION AMENDMENTS OF 1998.

    (a) Repeals of Expired and Executed Provisions.--The following 
provisions of the Higher Education Amendments of 1998 are repealed:
            (1) Study of market mechanisms in federal student loan 
        programs.--Section 801 (20 U.S.C. 1018 note).
            (2) Study of feasibility of alternate financial instruments 
        for determining lender yields.--Section 802.
            (3) Student related debt study.--Section 803 (20 U.S.C. 
        1015 note)
            (4) Study of opportunities for participation in athletic 
        programs.--Section 805 (20 U.S.C. 1001 note).
            (5) Community scholarship mobilization.--Part C (20 U.S.C. 
        1070 note).
            (6) Incarcerated youth.--Part D (20 U.S.C. 1151).
            (7) Improving united states understanding of science, 
        engineering, and technology in east asia.--Part F (20 U.S.C. 
        1862 note).
            (8) Web-based education commission.--Part J.
    (b) Extensions of Authorizations and Studies.--
            (1) Transfer of credit.--Section 804(b) (20 U.S.C. 1099b 
        note) is amended--
                    (A) by striking ``one year after the date of 
                enactment of this Act'' and inserting ``September 30, 
                2007''; and
                    (B) by inserting ``and policies of institutions of 
                higher education'' after ``agencies or associations''.
            (2) Cohort default rate study.--Section 806 is amended--
                    (A) in subsection (a), by striking ``higher 
                education at which less'' and inserting ``higher 
                education. The study shall also review the effect of 
                cohort default rates specifically on institutions of 
                higher education at which less''; and
                    (B) in subsection (c), by striking ``September 30, 
                1999,'' and inserting ``September 30, 2007,''.
            (3) Violence against women.--Section 826 (20 U.S.C. 1152) 
        is amended--
                    (A) in subsection (g)--
                            (i) by striking ``1999'' and inserting 
                        ``2006''; and
                            (ii) by striking ``4 succeeding'' and 
                        inserting ``5 succeeding''; and
                    (B) by redesignating subsections (f) and (g) as 
                subsections (e) and (f), respectively.
            (4) Underground railroad.--Subsection (c) of section 841 
        (20 U.S.C. 1153(c)) is amended to read as follows:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $3,000,000 for fiscal year 2006 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.''.
    (c) Disbursement of Student Loans.--Section 422(d) of the Higher 
Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1696) is 
amended by adding at the end the following new sentence: ``Such 
amendments shall also be effective on and after July 1, 2006.''.

SEC. 922. TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT OF 
              1978.

    (a) Title I Authorization.--Section 110(a) of the Tribally 
Controlled Community College or University Assistance Act of 1978 (25 
U.S.C. 1810(a)) is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2006''; and
            (2) by striking ``4 succeeding'' each place it appears and 
        inserting ``5 succeeding''.
    (b) Title III Reauthorization.--Section 306(a) of the Tribally 
Controlled Community College or University Assistance Act of 1978 (25 
U.S.C. 1836(a)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (c) Title IV Reauthorization.--Section 403 of the Tribal Economic 
Development and Technology Related Education Assistance Act of 1990 (25 
U.S.C. 1852) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (d) Additional Amendments.--The Tribally Controlled Community 
College or University Assistance Act of 1978 is further amended--
            (1) in section 2(a)(6) (25 U.S.C. 1801(a)(6)), by striking 
        ``in the field of Indian education'' and inserting ``in the 
        field of Tribal Colleges and Universities and Indian higher 
        education'';
            (2) in section 2(b), by striking paragraph (5) and 
        inserting the following:
            ``(5) Eligible credits earned in a continuing education 
        program shall be determined as one credit for every 10 contact 
        hours for institutions on a quarter system, and 15 contact 
        hours for institutions on a semester system, of participation 
        in an organized continuing education experience under 
        responsible sponsorship, capable direction, and qualified 
        instruction, as described in the criteria established by the 
        International Association for Continuing Education and 
        Training, and may not exceed 20 percent of an institution's 
        total Indian student count.''; and
            (3) in section 103 (25 U.S.C. 1804), by striking ``and'' at 
        the end of paragraph (2), by striking the period at the end of 
        paragraph (3) and inserting ``; and'', and by inserting after 
        paragraph (3) the following new paragraph:
            ``(4) has been accredited by a nationally recognized 
        accrediting agency or association determined by the Secretary 
        of Education to be a reliable authority as to the quality of 
        training offered, or is, according to such an agency or 
        association, making reasonable progress toward 
        accreditation.''.

SEC. 923. NAVAJO COMMUNITY COLLEGE ACT.

    Section 5(a)(1) of the Navajo Community College Act (25 U.S.C. 
640c-1(a)(1)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 924. EDUCATION AMENDMENTS OF 1992.

    Section 1543(d) of the Education Amendments of 1992 (20 U.S.C. 1070 
note) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 925. STUDY OF STUDENT LEARNING OUTCOMES AND PUBLIC ACCOUNTABILITY.

    (a) Study Required.--The Secretary shall provide for the conduct a 
study of the best practices of States in assessing undergraduate 
postsecondary student learning, particularly as such practices relate 
to public accountability systems.
    (b) Characteristics of the Association.--Such study shall be 
conducted by an association or organization with specific expertise and 
knowledge in state practices and access to necessary state officials 
(in this section referred to as the ``association''). The association 
responsible for the study under this section shall be a national, non-
partisan or bi-partisan entity representing States or State officials 
with expertise in evaluative and qualitative policy research for best 
practice models, the capacity to convene experts, and to formulate 
policy recommendations.
    (c) Required Subjects of Study.--In performing the study, the 
association shall, at a minimum, examine the following:
            (1) The current status of institutional and state efforts 
        to embed student learning assessments into the state-level 
        public accountability frameworks.
            (2) The extent to which there is commonality among 
        educators and accrediting agencies on learning standards for 
        the associates and bachelors degrees.
            (3) The reliability, rigor, and generalizability of 
        available instruments to assess general education at the 
        undergraduate level.
            (4) Roles and responsibilities for public accountability 
        for student learning.
    (d) Consultation.--
            (1) National committee.--The association shall establish 
        and consult with a national committee. The committee shall meet 
        not less than twice a year to review the research, identify 
        best practice models, and review recommendations.
            (2) Membership.--The national advisory committee shall 
        consist of a representative of the Secretary of Education and 
        individuals with expertise in--
                    (A) State accountability systems;
                    (B) student learning assessments;
                    (C) student flow data;
                    (D) transitions between K-12 and higher education; 
                and
                    (E) Federal higher education policy.
            (3) Additional expertise.--The association may augment this 
        committee with other expertise, as appropriate.
    (e) Congressional Consultation.--The association shall consult on a 
regular basis with the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health Education Labor 
and Pensions of the Senate in carrying out the study required by this 
section.
    (f) Report.--The association shall, not later than two years after 
the date of enactment of this Act, prepare and submit a report on the 
study required by this section to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate.
                                 <all>
```