II 

110TH CONGRESS 

1ST SESSION S. 1399 

To amend the Internal Revenue Code of 1986 to combine the Hope Scholarship Credit and the deduction for qualified tuition and related expenses 

into a refundable college affordability and creating chances for educational success for students (ACCESS) credit, to establish an Early 

Federal Pell Grant Commitment Demonstration Program, and to increase 

the maximum Federal Pell Grant Award. 

IN THE SENATE OF THE UNITED STATES 

MAY 15, 2007 

Mr. BIDEN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to combine 

the Hope Scholarship Credit and the deduction for qualified tuition and related expenses into a refundable college 

affordability and creating chances for educational success 

for students (ACCESS) credit, to establish an Early 

Federal Pell Grant Commitment Demonstration Program, and to increase the maximum Federal Pell Grant 

Award. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘College Affordability 

3 and Creating Chances for Educational Success for Stu4 dents Act of 2007’’. 

5 TITLE I—COLLEGE ACCESS TAX 

6 CREDIT ACT 

7 SEC. 101. SHORT TITLE. 

8 This title may be cited as the ‘‘College ACCESS Tax 

9 Credit Act’’. 

10 SEC. 102. COLLEGE AFFORDABILITY AND CREATING 

11 CHANCES FOR EDUCATIONAL SUCCESS FOR 

12 STUDENTS (ACCESS) CREDIT. 

13 (a) ALLOWANCE OF CREDIT.— 

14 (1) IN GENERAL.—Subpart C of part IV of sub15 chapter A of chapter 1 of the Internal Revenue Code 

16 of 1986 (relating to refundable credits) is amended 

17 by redesignating section 36 as section 37 and by in18 serting after section 35 the following new section: 

19 ‘‘SEC. 36. COLLEGE AFFORDABILITY AND CREATING 

20 CHANCES FOR EDUCATIONAL SUCCESS FOR 

21 STUDENTS (ACCESS) CREDIT. 

22 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al23 lowed as a credit against the tax imposed by this subtitle 

24 for any taxable year an amount equal to the qualified tui25 tion and related expenses paid by the taxpayer during the 


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1 taxable year (for education furnished during any academic 

2 period beginning in such taxable year). 

3 ‘‘(b) LIMITATIONS.— 

4 ‘‘(1) IN GENERAL.—The credit allowed under 

5 this section shall not exceed $3,000 with respect to 

6 any student for any taxable year. 

7 ‘‘(2) LIFETIME LIMITATION.—The credit al8 lowed under this section with respect to any student 

9 shall not exceed— 

10 ‘‘(A) the excess (if any) of — 

11 ‘‘(i) $12,000 with respect to education 

12 furnished prior to the date such student 

13 receives a baccalaureate degree, over 

14 ‘‘(ii) the aggregate credit allowed 

15 under this section with respect to such 

16 education for all prior taxable years, and 

17 ‘‘(B) the excess (if any) of— 

18 ‘‘(i) $6,000 with respect to education 

19 furnished after to the date such student 

20 receives a baccalaureate degree, over 

21 ‘‘(ii) the aggregate credit allowed 

22 under this section with respect to such 

23 education for all prior taxable years. 

24 ‘‘(3) LIMITATION BASED ON MODIFIED AD25 JUSTED GROSS INCOME.— 


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1 ‘‘(A) IN GENERAL.—The amount which 

2 would (but for this subsection) be taken into ac3 count under subsection (a) for the taxable year 

4 shall be reduced (but not below zero) by the 

5 amount determined under subparagraph (B). 

6 ‘‘(B) AMOUNT OF REDUCTION.—The 

7 amount determined under this subparagraph is 

8 the amount which bears the same ratio to the 

9 amount which would be so taken into account 

10 as— 

11 ‘‘(i) the excess of— 

12 ‘‘(I) the taxpayer’s modified ad13 justed gross income for such taxable 

14 year, over 

15 ‘‘(II) $65,000 ($130,000 in the 

16 case of a joint return), bears to 

17 ‘‘(ii) $18,500 ($37,000 in the case of 

18 a joint return). 

19 ‘‘(C) MODIFIED ADJUSTED GROSS IN20 COME.—The term ‘modified adjusted gross in21 come’ means the adjusted gross income of the 

22 taxpayer for the taxable year increased by any 

23 amount excluded from gross income under sec24 tion 911, 931, or 933. 


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1 ‘‘(4) DENIAL OF CREDIT IF STUDENT CON2 VICTED OF A FELONY DRUG OFFENSE.—The credit 

3 under subsection (a) shall not be allowed for quali4 fied tuition and related expenses for the enrollment 

5 or attendance of a student for any academic period 

6 if such student has been convicted of a Federal or 

7 State felony offense consisting of the possession or 

8 distribution of a controlled substance before the end 

9 of the taxable year with or within which such period 

10 ends. 

11 ‘‘(c) ELECTION NOT TO HAVE SECTION APPLY.—A 

12 taxpayer may elect not to have this section apply with re13 spect to the qualified tuition and related expenses of an 

14 individual for any taxable year. 

15 ‘‘(d) DEFINITIONS.—For purposes of this section, the 

16 terms ‘qualified tuition and related expenses’ and ‘eligible 

17 educational institution’ shall have the meaning give such 

18 terms under section 25A(d). 

19 ‘‘(e) SPECIAL RULES.—For purposes of this section, 

20 rules similar to the rules of paragraphs (1) through (7) 

21 of section 25A shall apply. 

22 ‘‘(f) INFLATION ADJUSTMENT.— 

23 ‘‘(1) DOLLAR LIMITATION ON AMOUNT OF

24 CREDIT.— 


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1 ‘‘(A) IN GENERAL.—In the case of a tax2 able year beginning after 2007, the $3,000 

3 amount under subsection (b)(1) shall be in4 creased by an amount equal to— 

5 ‘‘(i) such dollar amount, multiplied by 

6 ‘‘(ii) the cost-of-living adjustment de7 termined under section 1(f)(3) for the cal8 endar year in which the taxable year be9 gins, determined by substituting ‘calendar 

10 year 2006’ for ‘calendar year 1992’ in sub11 paragraph (B) thereof. 

12 ‘‘(B) ROUNDING.—If any amount as ad13 justed under subparagraph (A) is not a multiple 

14 of $100, such amount shall be rounded to the 

15 next lowest multiple of $100. 

16 ‘‘(2) INCOME LIMITS.— 

17 ‘‘(A) IN GENERAL.—In the case of a tax18 able year beginning after 2007, each of the dol19 lar amounts in subsection (b)(2)(B) shall each 

20 be increased by an amount equal to— 

21 ‘‘(i) such dollar amount, multiplied by 

22 ‘‘(ii) the cost-of-living adjustment de23 termined under section 1(f)(3) for the cal24 endar year in which the taxable year be25 gins, determined by substituting ‘calendar 


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1 year 2006’ for ‘calendar year 1992’ in sub2 paragraph (B) thereof. 

3 ‘‘(B) ROUNDING.—If any amount as ad4 justed under subparagraph (A) is not a multiple 

5 of $1,000, such amount shall be rounded to the 

6 next lowest multiple of $1,000. 

7 ‘‘(g) REGULATIONS.—The Secretary may prescribe 

8 such regulations as may be necessary or appropriate to 

9 carry out this section, including regulations providing for 

10 a recapture of the credit allowed under this section in 

11 cases where there is a refund in a subsequent taxable year 

12 of any amount which was taken into account in deter13 mining the amount of such credit.’’. 

14 (2) REFUNDABILITY OF CREDIT.—Paragraph 

15 (2) of section 1324(b) of title 31, United States 

16 Code, is amended by inserting before the period ‘‘or 

17 enacted by the College ACCESS Tax Credit Act’’. 

18 (3) CONFORMING AMENDMENTS.— 

19 (A) Subparagraph (A) of section 135(d)(2) 

20 of the Internal Revenue Code of 1986 is 

21 amended by striking ‘‘section 25A’’ and insert22 ing ‘‘sections 25A and 36’’. 

23 (B) Section 529 of such Code is amended 

24 by striking ‘‘the credit allowed to the taxpayer 

25 or any other person under section 25A’’ in subVerDate Aug 31 2005 23:26 May 17, 2007 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1399.IS S1399

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1 clause (II) of subsection (c)(3)(B)(v) and in2 serting ‘‘any credit allowed to the taxpayer or 

3 any other person under sections 25A and 36’’. 

4 (C) Section 530 of such Code is amended 

5 by striking ‘‘the credit allowed to the taxpayer 

6 or any other person under section 25A’’ in sub7 clause (II) of subsection (d)(2)(C)(i) and insert8 ing ‘‘any credit allowed to the taxpayer or any 

9 other person under sections 25A and 36’’. 

10 (D) Subparagraph (J) of section 

11 6213(g)(2) of such Code is amended by striking 

12 ‘‘section 25A(g)(1)’’ and inserting ‘‘section 

13 25A(g)(1) or 36(e)(1)’’. 

14 (E) Section 6501(m) of such Code is 

15 amended by inserting ‘‘36(c),’’ before ‘‘, 40(f)’’ 

16 (F) The table of sections for subpart C of 

17 part IV of subchapter A of chapter 1 of such 

18 Code is amended by striking the item relating 

19 to section 36 and inserting the following: 

‘‘Sec. 36. College affordability and creating chances for educational success for 

students (ACCESS) credit. 

‘‘Sec. 37. Overpayments of tax.’’. 

20 (b) REPEAL OF HOPE SCHOLARSHIP CREDIT.— 

21 (1) IN GENERAL.—Subsection (a) of section 

22 25A of the Internal Revenue Code of 1986 is 

23 amended to read as follows: 


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1 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in2 dividual, there shall be allowed as a credit against the tax 

3 imposed by this chapter for the taxable year an amount 

4 equal to 20 percent of so much of the qualified tuition 

5 and related expenses paid by the taxpayer during the tax6 able year (for education furnished during any academic 

7 period beginning in such taxable year) as does not exceed 

8 $10,000.’’. 

9 (2) CONFORMING AMENDMENTS.— 

10 (A) Section 25A of such Code is amended 

11 by striking subsections (b) and (c) and by re12 designating subsections (d), (e), (f), (g), (h), 

13 and (i) as subsections (b), (c), (d), (e), (f), and 

14 (g). 

15 (B) Section 25A(e) of such Code, as redes16 ignated by subparagraph (A), is amended by 

17 adding at the end the following: 

18 ‘‘(8) COORDINATION WITH COLLEGE AFFORD19 ABILITY AND CREATING CHANCES FOR EDU20 CATIONAL SUCCESS FOR STUDENTS (ACCESS) CRED21 IT.—The qualified tuition and related expenses with 

22 respect to an individual for whom a credit under sec23 tion 36 is allowed for the taxable year shall not be 

24 taken into account under this section. 


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1 ‘‘(9) CERTAIN EXPENSES ELIGIBLE.—For pur2 poses of this section, qualified tuition and related ex3 penses shall include expenses described in subsection 

4 (d)(1) with respect to any course of instruction at an 

5 eligible educational institution to acquire or improve 

6 job skills of the individual.’’. 

7 (C) Paragraph (2) of section 25A(e) of 

8 such Code, as redesignated by subparagraph 

9 (A), is amended by striking ‘‘before the applica10 tion of subsections (b), (c), and (d)’’ and insert11 ing ‘‘before the application of subsection (b) 

12 and paragraphs (8) and (9) of this subsection’’. 

13 (D) Section 25A(f) of such Code, as redes14 ignated by subparagraph (A), is amended to 

15 read as follows: 

16 ‘‘(f) INFLATION ADJUSTMENT.— 

17 ‘‘(1) IN GENERAL.—In the case of a taxable 

18 year beginning after 2001, the $40,000 and $80,000 

19 amounts in subsection (b)(2) shall each be increased 

20 by an amount equal to— 

21 ‘‘(A) such dollar amount, multiplied by 

22 ‘‘(B) the cost-of-living adjustment deter23 mined under section 1(f)(3) for the calendar 

24 year in which the taxable year begins, deter25 mined by substituting ‘calendar year 2000’ for 


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1 ‘calendar year 1992’ in subparagraph (B) 

2 thereof. 

3 ‘‘(2) ROUNDING.—If any amount as adjusted 

4 under subparagraph (A) is not a multiple of $1,000, 

5 such amount shall be rounded to the next lowest 

6 multiple of $1,000.’’. 

7 (E) The heading for section 25A of such 

8 Code is amended— 

9 (i) by striking ‘‘HOPE AND’’, and 

10 (ii) by striking ‘‘CREDITS’’ and in11 serting ‘‘CREDIT’’. 

12 (F) The item relating to section 25A in the 

13 table of sections for subpart A of part IV of 

14 subchapter A of chapter 1 of such Code is 

15 amended to read as follows: 

‘‘25A. Lifetime Learning credit.’’. 

16 (G)(i) Subparagraph (B) of section 

17 72(t)(7) of such Code is amended by striking 

18 ‘‘section 25A(g)(2)’’ and inserting ‘‘section 

19 25A(e)(2)’’. 

20 (ii) Section 221(d) of such Code is amend21 ed— 

22 (I) by striking ‘‘section 25A(g)(2)’’ in 

23 paragraph (2)(B) and inserting ‘‘section 

24 25A(e)(2)’’, 


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1 (II) by striking ‘‘section 25A(f)(2)’’ in 

2 paragraph (2)(B) and inserting ‘‘section 

3 25A(d)(2)’’, and 

4 (III) by striking ‘‘section 25A(b)(3)’’ 

5 in paragraph (3) and inserting ‘‘section 

6 25A(b)(3)(B)’’. 

7 (iii) Section 529 of such Code is amend8 ed— 

9 (I) by striking ‘‘section 25A(g)(2)’’ in 

10 subclause (I) of subsection (c)(3)(B)(v) 

11 and inserting ‘‘section 25A(e)(2)’’, and 

12 (II) by striking ‘‘section 25A(b)(3)’’ 

13 in clause (i) of subsection (e)(3)(B) and in14 serting ‘‘section 25A(b)(3)(A)’’. 

15 (iv) Section 530 of such Code is amend16 ed— 

17 (I) by striking ‘‘section 25A(g)(2)’’ in 

18 subclause (I) of subsection (d)(2)(C)(i) and 

19 inserting ‘‘section 25A(e)(2)’’, and 

20 (II) by striking ‘‘section 25A(g)(2)’’ 

21 in clause (iii) of subsection (d)(4)(B) and 

22 inserting ‘‘section 25A(e)(2)’’. 

23 (v) Subsection (e) of section 6050S of such 

24 Code is amended by striking ‘‘(g)(2) thereof’’ 

25 and inserting ‘‘(e)(2) thereof’’. 


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1 (vi) Subparagraph (J) of section 

2 6213(g)(2) of such Code, as amended by sub3 section 9a)(3), is amended by striking ‘‘section 

4 25A(g)(1)’’ and inserting ‘‘section 25A(e)(1)’’. 

5 (c) REPEAL OF DEDUCTION FOR QUALIFIED TUI6 TION AND RELATED EXPENSES.— 

7 (1) IN GENERAL.—Part VII of subchapter B of 

8 chapter 1 of the Internal Revenue Code of 1986 is 

9 amended by striking section 222. 

10 (2) CONFORMING AMENDMENTS.— 

11 (A) The table of sections for part VII of 

12 subchapter B of chapter 1 of such Code is 

13 amended by striking the item relating to section 

14 222. 

15 (B) The following sections of the Internal 

16 Revenue Code of 1986 are each amended by 

17 striking ‘‘222,’’: 

18 (i) Section 86(b)(2)(A). 

19 (ii) Section 135(c)(4)(A). 

20 (iii) Section 137(b)(3)(A). 

21 (iv) Section 199(d)(2)(A). 

22 (v) Section 219(g)(3)(A)(ii). 

23 (vi) Section 221(b)(2)(C)(i). 


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1 (C) Section 469(i)(3)(F)(iii) of such Code 

2 is amended by striking ‘‘221, and 222’’ and in3 serting ‘‘and 221’’. 

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

5 this section shall apply to expenses paid after December 

6 31, 2006, for education furnished in academic periods be7 ginning after such date. 

8 TITLE II—EARLY FEDERAL PELL 

9 GRANT COMMITMENT DEM10 ONSTRATION PROGRAM 

11 SEC. 201. EARLY FEDERAL PELL GRANT COMMITMENT 

12 DEMONSTRATION PROGRAM. 

13 Subpart 1 of part A of title IV of the Higher Edu14 cation Act of 1965 (20 U.S.C. 1070a et seq.) is amended 

15 by adding at the end the following: 

16 ‘‘SEC. 401B. EARLY FEDERAL PELL GRANT COMMITMENT 

17 DEMONSTRATION PROGRAM. 

18 ‘‘(a) DEMONSTRATION PROGRAM AUTHORITY.— 

19 ‘‘(1) IN GENERAL.—The Secretary is authorized 

20 to carry out an Early Federal Pell Grant Commit21 ment Demonstration Program under which— 

22 ‘‘(A) the Secretary awards grants to 4 

23 State educational agencies, in accordance with 

24 paragraph (2), to pay the administrative exVerDate Aug 31 2005 23:26 May 17, 2007 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1399.IS S1399

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1 penses incurred in participating in the dem2 onstration program under this section; and 

3 ‘‘(B) the Secretary awards Federal Pell 

4 Grants to participating students in accordance 

5 with this section. 

6 ‘‘(2) GRANTS.— 

7 ‘‘(A) IN GENERAL.—From amounts appro8 priated under subsection (g) for a fiscal year, 

9 the Secretary is authorized to award grants to 

10 4 State educational agencies to enable the State 

11 educational agencies to pay the administrative 

12 expenses incurred in participating in a dem13 onstration program under which students in 8th 

14 grade who are eligible for a free or reduced 

15 price meal receive a commitment to receive a 

16 Federal Pell Grant early in their academic ca17 reers. 

18 ‘‘(B) EQUAL AMOUNTS.—The Secretary 

19 shall award grants under this section in equal 

20 amounts to each of the 4 participating State 

21 educational agencies. 

22 ‘‘(b) DEMONSTRATION PROJECT REQUIREMENTS.— 

23 Each of the 4 demonstration projects assisted under this 

24 section shall meet the following requirements: 

25 ‘‘(1) PARTICIPANTS.— 


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1 ‘‘(A) IN GENERAL.—The State educational 

2 agency shall make participation in the dem3 onstration project available to 2 cohorts of stu4 dents, which shall consist of— 

5 ‘‘(i) 1 cohort of 8th grade students 

6 who begin the participation in academic 

7 year 2007–2008; and 

8 ‘‘(ii) 1 cohort of 8th grade students 

9 who begin the participation in academic 

10 year 2008–2009. 

11 ‘‘(B) STUDENTS IN EACH COHORT.—Each 

12 cohort of students shall consist of not more 

13 than 10,000 8th grade students who qualify for 

14 a free or reduced price meal under the Richard 

15 B. Russell National School Lunch Act or the 

16 Child Nutrition Act of 1966. 

17 ‘‘(2) STUDENT DATA.—The State educational 

18 agency shall ensure that student data from local 

19 educational agencies serving students who partici20 pate in the demonstration project, as well as student 

21 data from local educational agencies serving a com22 parable group of students who do not participate in 

23 the demonstration project, are available for evalua24 tion of the demonstration project. 


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1 ‘‘(3) FEDERAL PELL GRANT COMMITMENT.— 

2 Each student who participates in the demonstration 

3 project receives a commitment from the Secretary to 

4 receive a Federal Pell Grant during the first aca5 demic year that student is in attendance at an insti6 tution of higher education as an undergraduate, if 

7 the student applies for Federal financial aid (via the 

8 FAFSA) during the student’s senior year of sec9 ondary school and during succeeding years. 

10 ‘‘(4) APPLICABILITY OF FEDERAL PELL GRANT

11 REQUIREMENTS.—The requirements of section 401 

12 shall apply to Federal Pell Grants awarded pursuant 

13 to this section, except that the amount of each par14 ticipating student’s Federal Pell Grant only shall be 

15 calculated by deeming such student to have an ex16 pected family contribution equal to zero. 

17 ‘‘(5) APPLICATION PROCESS.—The Secretary 

18 shall establish an application process to select State 

19 educational agencies to participate in the demonstra20 tion program and State educational agencies shall 

21 establish an application process to select local edu22 cational agencies within the State to participate in 

23 the demonstration project. 

24 ‘‘(6) LOCAL EDUCATIONAL AGENCY PARTICIPA25 TION.—Subject to the 10,000 statewide student limiVerDate Aug 31 2005 23:26 May 17, 2007 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S1399.IS S1399

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1 tation described in paragraph (1), a local edu2 cational agency serving students, not less than 50 

3 percent of whom are eligible for a free or reduced 

4 price meal under the Richard B. Russell National 

5 School Lunch Act or the Child Nutritional Act of 

6 1966, shall be eligible to participate in the dem7 onstration project. 

8 ‘‘(c) STATE EDUCATIONAL AGENCY APPLICA9 TIONS.— 

10 ‘‘(1) IN GENERAL.—Each State educational 

11 agency desiring to participate in the demonstration 

12 program under this section shall submit an applica13 tion to the Secretary at such time and in such man14 ner as the Secretary may require. 

15 ‘‘(2) CONTENTS.—Each application shall in16 clude— 

17 ‘‘(A) a description of the proposed targeted 

18 information campaign for the demonstration 

19 project and a copy of the plan described in sub20 section (f)(2); 

21 ‘‘(B) a description of the student popu22 lation that will receive an early commitment to 

23 receive a Federal Pell Grant under this section; 

24 ‘‘(C) an assurance that the State edu25 cational agency will fully cooperate with the onVerDate Aug 31 2005 23:26 May 17, 2007 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S1399.IS S1399

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1 going evaluation of the demonstration project; 

2 and 

3 ‘‘(D) such other information as the Sec4 retary may require. 

5 ‘‘(d) SELECTION CONSIDERATIONS.— 

6 ‘‘(1) SELECTION OF STATE EDUCATIONAL

7 AGENCIES.—In selecting State educational agencies 

8 to participate in the demonstration program, the 

9 Secretary shall consider— 

10 ‘‘(A) the number and quality of State edu11 cational agency applications received; 

12 ‘‘(B) the Department’s capacity to oversee 

13 and monitor each State educational agency’s 

14 participation in the demonstration program; 

15 ‘‘(C) a State educational agency’s— 

16 ‘‘(i) financial responsibility; 

17 ‘‘(ii) administrative capability; 

18 ‘‘(iii) commitment to focusing State 

19 resources, in addition to any resources pro20 vided under part A of title I of the Ele21 mentary and Secondary Education Act of 

22 1965, on students who receive assistance 

23 under such part A; 

24 ‘‘(iv) the ability and plans of a State 

25 educational agency to run an effective and 


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1 thorough targeted information campaign 

2 for students served by local educational 

3 agencies eligible to participate in the dem4 onstration project; and 

5 ‘‘(v) ensuring the participation in the 

6 demonstration program of a diverse group 

7 of students with respect to ethnicity and 

8 gender. 

9 ‘‘(2) LOCAL EDUCATIONAL AGENCY.—In select10 ing local educational agencies to participate in a 

11 demonstration project under this section, the State 

12 educational agency shall consider— 

13 ‘‘(A) the number and quality of local edu14 cational agency applications received; 

15 ‘‘(B) the State educational agency’s capac16 ity to oversee and monitor each local edu17 cational agency’s participation in the dem18 onstration project; 

19 ‘‘(C) a local educational agency’s— 

20 ‘‘(i) financial responsibility; 

21 ‘‘(ii) administrative capability; 

22 ‘‘(iii) commitment to focusing local re23 sources, in addition to any resources pro24 vided under part A of title I of the Ele25 mentary and Secondary Education Act of 


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1 1965, on students who receive assistance 

2 under such part A; 

3 ‘‘(iv) the ability and plans of a local 

4 educational agency to run an effective and 

5 thorough targeted information campaign 

6 for students served by the local educational 

7 agency; and 

8 ‘‘(v) ensuring the participation in the 

9 demonstration project of a diverse group of 

10 students with respect to ethnicity and gen11 der. 

12 ‘‘(e) EVALUATION.— 

13 ‘‘(1) IN GENERAL.—From amounts appro14 priated under section (g) for a fiscal year, the Sec15 retary shall reserve not more than $1,000,000 to 

16 award a grant or contract to an organization outside 

17 the Department for an independent evaluation of the 

18 impact of the demonstration program assisted under 

19 this section. 

20 ‘‘(2) COMPETITIVE BASIS.—The grant or con21 tract shall be awarded on a competitive basis. 

22 ‘‘(3) MATTERS EVALUATED.—The evaluation 

23 described in this subsection shall— 


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1 ‘‘(A) determine the number of individuals 

2 who were encouraged by the demonstration pro3 gram to pursue higher education; 

4 ‘‘(B) identify the barriers to the effective5 ness of the demonstration program; 

6 ‘‘(C) assess the cost-effectiveness of the 

7 demonstration program in improving access to 

8 higher education; 

9 ‘‘(D) identify the reasons why participants 

10 in the demonstration program either received or 

11 did not receive a Federal Pell Grant; 

12 ‘‘(E) identify intermediate outcomes (rel13 ative to postsecondary education attendance), 

14 such as whether participants— 

15 ‘‘(i) were more likely to take a college16 prep curriculum while in secondary school; 

17 ‘‘(ii) submitted any college applica18 tions; and 

19 ‘‘(iii) took the PSAT, SAT, or ACT; 

20 ‘‘(F) identify the number of individuals 

21 participating in the demonstration program who 

22 pursued an associate’s degree or a bachelor’s 

23 degree, as well as other forms of postsecondary 

24 education; 


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1 ‘‘(G) compare the findings of the dem2 onstration program with respect to participants 

3 to comparison groups (of similar size and demo4 graphics) that did not participate in the dem5 onstration program; and 

6 ‘‘(H) identify the impact on the parents of 

7 students eligible to participate in the dem8 onstration program. 

9 ‘‘(4) DISSEMINATION.—The findings of the 

10 evaluation shall be widely disseminated to the public 

11 by the organization conducting the evaluation as well 

12 as by the Secretary. 

13 ‘‘(f) TARGETED INFORMATION CAMPAIGN.— 

14 ‘‘(1) IN GENERAL.—Each State educational 

15 agency receiving a grant under this section shall, in 

16 cooperation with the participating local educational 

17 agencies within the State and the Secretary, develop 

18 a targeted information campaign for the demonstra19 tion program assisted under this section. 

20 ‘‘(2) PLAN.—Each State educational agency re21 ceiving a grant under this section shall include in 

22 the application submitted under subsection (c) a 

23 written plan for their proposed targeted information 

24 campaign. The plan shall include the following: 


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1 ‘‘(A) OUTREACH.—Outreach to students 

2 and their families, at a minimum, at the begin3 ning and end of each academic year of the dem4 onstration project. 

5 ‘‘(B) DISTRIBUTION.—How the State edu6 cational agency plans to provide the outreach 

7 described in subparagraph (A) and to provide 

8 the information described in subparagraph (C). 

9 ‘‘(C) INFORMATION.—The annual provi10 sion by the State educational agency to all stu11 dents and families participating in the dem12 onstration program of information regarding— 

13 ‘‘(i) the estimated statewide average 

14 higher education institution cost data for 

15 each academic year, which cost data shall 

16 be disaggregated by— 

17 ‘‘(I) type of institution, includ18 ing— 

19 ‘‘(aa) 2-year public colleges; 

20 ‘‘(bb) 4-year public colleges; 

21 and 

22 ‘‘(cc) 4-year private colleges; 

23 ‘‘(II) by component, including— 

24 ‘‘(aa) tuition and fees; and 

25 ‘‘(bb) room and board; 


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•S 1399 IS

1 ‘‘(ii) Federal Pell Grants, including— 

2 ‘‘(I) the maximum Federal Pell 

3 Grant for each academic year; 

4 ‘‘(II) when and how to apply for 

5 a Federal Pell Grant; and 

6 ‘‘(III) what the application proc7 ess for a Federal Pell Grant requires; 

8 ‘‘(iii) State-specific college savings 

9 programs; 

10 ‘‘(iv) State-based merit aid; 

11 ‘‘(v) State-based financial aid; and 

12 ‘‘(vi) Federal financial aid available to 

13 students, including eligibility criteria for 

14 the Federal financial aid and an expla15 nation of the Federal financial aid pro16 grams. 

17 ‘‘(3) COHORTS.—The information described in 

18 paragraph (2)(C) shall be provided to 2 cohorts of 

19 students annually for the duration of the students’ 

20 participation in the demonstration program. The 2 

21 cohorts shall consist of— 

22 ‘‘(A) 1 cohort of 8th grade students who 

23 begin the participation in academic year 2007– 

24 2008; and 


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•S 1399 IS

1 ‘‘(B) 1 cohort of 8th grade students who 

2 begin the participation in academic year 2008– 

3 2009. 

4 ‘‘(4) RESERVATION.—Each State educational 

5 agency receiving a grant under this section shall re6 serve $200,000 of the grant funds received each fis7 cal year for each of the 2 cohorts of students (for 

8 a total reservation of $400,000 each fiscal year) 

9 served by the State to carry out their targeted infor10 mation campaign described in this subsection. 

11 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to carry out this sec13 tion— 

14 ‘‘(1) $1,300,000 for fiscal year 2008, of 

15 which— 

16 ‘‘(A) $500,000 shall be available to carry 

17 out subsection (e); and 

18 ‘‘(B) $800,000 shall be available to carry 

19 out subsection (f)(2)(C); 

20 ‘‘(2) $1,600,000 for fiscal year 2009, of which 

21 $1,600,000 shall be available to carry out subsection 

22 (f)(2)(C); 

23 ‘‘(3) $1,600,000 for fiscal year 2010, of which 

24 $1,600,000 shall be available to carry out subsection 

25 (f)(2)(C); 


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•S 1399 IS

1 ‘‘(4) $2,100,000 for fiscal year 2011, of 

2 which— 

3 ‘‘(A) $500,000 shall be available to carry 

4 out subsection (e); and 

5 ‘‘(B) $1,600,000 shall be available to carry 

6 out subsection (f)(2)(C); 

7 ‘‘(5) $1,600,000 for fiscal year 2012, of which 

8 $1,600,000 shall be available to carry out subsection 

9 (f)(2)(C); 

10 ‘‘(6) $14,600,000 for fiscal year 2013, of 

11 which— 

12 ‘‘(A) $800,000 shall be available to carry 

13 out subsection (f)(2)(C); and 

14 ‘‘(B) $13,800,000 shall be available for 

15 Federal Pell Grants provided in accordance 

16 with this section; and 

17 ‘‘(7) $13,800,000 for fiscal year 2014, of which 

18 $13,800,000 shall be available for Federal Pell 

19 Grants provided in accordance with this section.’’. 


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•S 1399 IS

1 TITLE III—INCREASE IN FED2 ERAL PELL GRANT MAXIMUM 

3 AWARD 

4 SEC. 301. INCREASE OF MAXIMUM FEDERAL PELL GRANT 

5 AMOUNT. 

6 Section 401(b)(2)(A) of the Higher Education Act of 

7 1965 (20 U.S.C. 1070a(b)(2)(A)) is amended by striking 

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

9 ‘‘(i) $5,100 for academic year 2007–2008; 

10 ‘‘(ii) $5,400 for academic year 2008–2009; 

11 ‘‘(iii) $5,700 for academic year 2009–2010; 

12 ‘‘(iv) $6,000 for academic year 2010–2011; and 

13 ‘‘(v) $6,300 for academic year 2011–2012,’’. 

Æ 


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