II 

108TH CONGRESS 

1ST SESSION S. 1793

To provide for college quality, affordability, and diversity, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 28, 2003

Mr. KENNEDY (for himself, Mr. DODD, Mr. BINGAMAN, Mrs. MURRAY, Mr. 

REED, and Mrs. CLINTON) introduced the following bill; which was read 

twice and referred to the Committee on Health, Education, Labor, and 

Pensions 

A BILL

To provide for college quality, affordability, and diversity, 

and for other purposes.

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘College Quality, Af5 fordability, and Diversity Improvement Act of 2003’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows:

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Findings. 

TITLE I—ACCESS TO COLLEGE FOR ALL 
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Sec. 101. Pell Grants. 

Sec. 102. Expansion of Hope scholarships. 

Sec. 103. Elimination of origination fees and adjustment of fees and terms. 

Sec. 104. Direct Loan Reward Program. 

Sec. 105. Costs of higher education. 

Sec. 106. Credit for interest on higher education loans. 

Sec. 107. Refinancing authority for Federal Direct Consolidation Loan. 

Sec. 108. Loans funded through tax-exempt securities. 

Sec. 109. Windfall profit offset. 

Sec. 110. Support for working students. 

Sec. 111. Student eligibility. 

Sec. 112. Authorization of appropriations levels for campus-based aid. 

Sec. 113. Special programs for students whose families are engaged in migrant 

and seasonal farmwork. 

Sec. 114. Loan forgiveness and cancellation for certain teachers. 

Sec. 115. Revision of tax table. 

Sec. 116. Income contingent repayment for public sector employees. 

TITLE II—TEACHER QUALITY ENHANCEMENT 

Sec. 201. Amendment to title II. 

TITLE III—DIVERSITY, RETENTION, AND ENRICHED ACADEMICS 

FOR MATRICULATING STUDENTS 

Sec. 301. Test preparation for low-income students. 

Sec. 302. Admissions and retention. 

Sec. 303. Federal Trio program. 

Sec. 304. Gear Up. 

Sec. 305. Leveraging educational assistance partnership program. 

TITLE IV—OPPORTUNITIES AT HISPANIC-SERVING INSTITUTIONS 

Sec. 401. Postbaccalaureate opportunities for Hispanic Americans. 

Sec. 402. Definitions. 

Sec. 403. Authorized activities. 

Sec. 404. Elimination of wait-out period. 

Sec. 405. Application priority. 

TITLE V—HISTORICALLY BLACK COLLEGES AND UNIVERSITIES 

Sec. 501. Professional or graduate institutions. 

Sec. 502. Graduate and professional degree development program. 

Sec. 503. Authorization of appropriations. 

Sec. 504. Patsy T. Mink fellowship program. 

TITLE VI—RECRUITMENT OF TEACHERS TO TEACH AT TRIBAL 

COLLEGES OR UNIVERSITIES 

Sec. 601. Loan repayment or cancellation for individuals who teach in Tribal 

Colleges or Universities. 

Sec. 602. Amounts forgiven not treated as gross income.

1 SEC. 3. FINDINGS. 

2 Congress finds the following: 
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1 (1) A college education is more important than 

2 ever, and the Federal Government should do more to 

3 make it affordable and accessible to all qualified stu4 dents because—

5 (A) recent shifts in the economy have in6 creased the demand for college-educated work7 ers and increased the wage gap between college8 educated workers and those without a degree 

9 (workers with a Bachelor’s degree earn 75 per10 cent more than workers with just a high school 

11 diploma); and 

12 (B) jobs requiring some postsecondary 

13 education are expected to account for about 42 

14 percent of total job growth from 2000 through 

15 2010. 

16 (2) Increased access to college, reformed admis17 sions systems, and better retention of students are 

18 needed because—

19 (A) 65 percent of high-income students are 

20 on a college-preparatory track, whereas only 28 

21 percent of low-income students are on a college22 preparatory track; 

23 (B) 7 times as many students from high24 income families (48 percent) graduate from col-
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1 lege by age 24 as students from low-income 

2 families (7 percent); 

3 (C) 80 percent of 4-year institutions of 

4 higher education use the SAT in the admissions 

5 process; 

6 (D) commercial SAT coaching classes, 

7 such as those run by Kaplan, Inc. and Prince8 ton Review, have demonstrated effectiveness in 

9 raising a student’s SAT score by 100 points or 

10 more, which can significantly improve a stu11 dent’s chance of getting into an elite college; 

12 (E) SAT coaching programs range from 

13 $700 to $3,000 per course and the costs are 

14 prohibitive for low-income students; 

15 (F) those students who receive SAT coach16 ing tend to be disproportionally middle or upper 

17 class; 

18 (G) 34 percent of students who receive 

19 SAT coaching are from families whose com20 bined annual income is between $40,000 and 

21 $80,000, and 43 percent are from families 

22 whose combined annual income is more than 

23 $80,000; 
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1 (H) applying to college early decision pro2 vides an advantage to an applicant equal to an 

3 additional 100 points on the SAT; 

4 (I) low-income students are less able to 

5 apply to colleges early decision because such 

6 students need to compare the financial aid 

7 packages at different colleges; 

8 (J) 40 percent of all Whites age 18 

9 through 24 are enrolled in institutions of higher 

10 education, whereas only 30 percent of all Afri11 can-Americans and only 16 percent of all His12 panics are enrolled in institutions of higher edu13 cation; 

14 (K) nearly 4 out of every 10 Hispanics en15 rolled full time in 4-year colleges drop out with16 in 3 years of their initial enrollment, African17 Americans are half as likely as White students 

18 to complete a Bachelor’s degree in 4 years, and 

19 low-income students are half as likely as upper20 income students to complete a Bachelor’s de21 gree in 4 years; 

22 (L) in 1990, 1 in 4 Americans was a mem23 ber of a minority group, and in 2001, 1 in 3 

24 Americans was a member of a minority group;
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1 (M) low-income, college-qualified high 

2 school graduates have an annual ‘‘unmet need’’ 

3 of $3,800 in college expenses, expenses not cov4 ered by grants, loans, work, or family savings; 

5 (N) 46 percent of all students who work in 

6 addition to being full-time students report 25 

7 hours or more a week of employment; and 

8 (O) 50 percent of those employed more 

9 than 25 hours a week report that working hurts 

10 their grades and retention in college, and stu11 dents who work more than 35 hours a week are 

12 considerably less likely to complete a year of 

13 college than those who work less than 15 hours 

14 a week. 

15 (3) Federal student aid is too focused on loans 

16 instead of grant aid because—

17 (A) although approximately 

18 $55,000,000,000 is made available annually in 

19 direct and indirect Federal aid to postsecondary 

20 education students and their families, in 2002, 

21 60 percent of such Federal student aid was in 

22 the form of loans while only 40 percent was in 

23 the form of grants, a reversal of the distribu24 tion 20 years ago; 
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•S 1793 IS 

1 (B) the purchasing power of the Pell Grant 

2 has declined since Pell Grants cover only 40 

3 percent of average fixed costs at 4-year public 

4 colleges, about half of what they covered 25 

5 years ago; 

6 (C) 15 years ago Pell Grants covered 98 

7 percent of average tuition at 4-year public col8 leges, whereas today Pell Grants only cover 64 

9 percent on average; 

10 (D) the Federal Government saves money 

11 under the Direct Loan program and makes a 

12 profit of 3.5 cents on every dollar lent under 

13 the Direct Lending program, while it loses 

14 10.37 cents on every dollar lent under the Fed15 eral Family Education Loan Program; and 

16 (E) average student indebtedness is 

17 $17,000, and reaches over $120,000 for profes18 sional school graduates. 

19 (4) The Federal Government should do more to 

20 help States, local educational agencies, and schools 

21 ensure a qualified teacher in every classroom be22 cause under the No Child Left Behind Act of 2001, 

23 States are required to ensure that all teachers teach24 ing in core academic subjects within the State are 

25 ‘‘highly qualified’’ not later than the end of the 
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1 2005–2006 school year. States need to do much 

2 more to meet the challenges in the new Federal law. 

3 In the 1999–2000 school year, 29 percent of elemen4 tary school students, 59 percent of middle school 

5 students, and 29 percent of high school students 

6 were taught by teachers without both a major and 

7 certification in the subject in which they taught. 

8 (5) There is a severe shortage of qualified 

9 teachers, especially in high-need fields and low-in10 come areas because—

11 (A) approximately a third of America’s 

12 teachers leave teaching sometime during their 

13 first 3 years of teaching and almost half leave 

14 during the first 5 years; 

15 (B) overall turnover rate for teachers in 

16 high-poverty areas is almost a third higher than 

17 it is for teachers in all schools; 

18 (C) underqualified teachers are more often 

19 found in high-poverty schools; and 

20 (D) in low-poverty secondary schools, approximately 1 21 ⁄3 of students are taught by a 

22 teacher who lacks either a college degree in the 

23 subject area in which the teacher teaches or 

24 certification in such subject area, while in high-
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poverty secondary schools, approximately 1 1 ⁄2 of 

2 students are taught by such a teacher. 

3 (6) Teacher shortages are more severe in some 

4 fields than in others: 

5 (A) Employment opportunities in teaching 

6 special education are expected to grow 21 to 35 

7 percent through 2010, an increase of over 

8 150,000 positions. 

9 (B) The most recent data from a 1994 

10 General Accounting Office report estimates a 

11 shortage of 100,000 to 200,000 bilingual teach12 ers, even as the limited English proficient stu13 dent population continues to grow. 

14 (C) It is estimated that of the 2,000,000 

15 teachers needed over the next 10 years, almost 

16 200,000 will be secondary school mathematics 

17 and science teachers. 

18 TITLE I—ACCESS TO COLLEGE 

19 FOR ALL 

20 SEC. 101. PELL GRANTS. 

21 (a) APPROPRIATION OF FUNDS FOR PELL

22 GRANTS.—There are authorized to be appropriated and 

23 there are appropriated, out of any money in the Treasury 

24 not otherwise appropriated for the fiscal year ending Sep25 tember 30, 2004, for carrying out subpart 1 of part A
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1 of title IV of the Higher Education Act of 1965, 

2 $14,515,000,000. 

3 (b) AUTHORIZATION AMOUNT AND MAXIMUM PELL

4 GRANT.—Section 401(b) of the Higher Education Act of 

5 1965 (20 U.S.C. 1070a(b)) is amended—

6 (1) in paragraph (3)—

7 (A) in subparagraph (A), by striking ‘‘ap8 propriation Act’’ and inserting ‘‘appropriation 

9 Act or subparagraph (C)’’; and 

10 (B) by adding at the end the following: 

11 ‘‘(C) The maximum Pell Grant for which a stu12 dent shall be eligible during award year 2004–2005 

13 shall be $4,500.’’; and 

14 (2) in paragraph (2)(A), by striking clauses (i) 

15 through (v) and inserting the following: 

16 ‘‘(i) $7,600 for academic year 2005–2006; 

17 ‘‘(ii) $8,600 for academic year 2006–2007; 

18 ‘‘(iii) $9,600 for academic year 2007–2008; 

19 ‘‘(iv) $10,600 for academic year 2008–2009; 

20 and 

21 ‘‘(v) $11,600 for academic year 2009–2010,’’. 

22 SEC. 102. EXPANSION OF HOPE SCHOLARSHIPS. 

23 (a) EXPANSION OF HOPE SCHOLARSHIP CREDIT.—

24 (1) DOUBLE MAXIMUM CREDIT TO $3,000.—

25 Subsection (b) of section 25A of the Internal Rev-
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•S 1793 IS 

1 enue Code of 1986 (relating to Hope and Lifetime 

2 Learning credits) is amended by striking ‘‘2’’ in 

3 paragraph (4) and inserting ‘‘3’’. 

4 (2) CREDIT AVAILABLE FOR 4 YEARS.—Sub5 section (b) of section 25A of such Code is amended 

6 by striking ‘‘2’’ each place it appears in paragraphs 

7 (2)(A), (2)(C), and (4) and inserting ‘‘4’’. 

8 (3) REFUNDABLE CREDIT.—

9 (A) IN GENERAL.—Section 25A of such 

10 Code is hereby moved to subpart C of part IV 

11 of subchapter A of chapter 1 of such Code (re12 lating to refundable credits) and inserted after 

13 section 35. 

14 (B) TECHNICAL AMENDMENTS.—

15 (i) Section 36 of such Code is redesig16 nated as section 37. 

17 (ii) Section 25A of such Code (as 

18 moved by subsection (a)) is redesignated as 

19 section 36. 

20 (iii) Paragraph (1) of section 36(a) of 

21 such Code (as redesignated by paragraph 

22 (2)) is amended by striking ‘‘this chapter’’ 

23 and inserting ‘‘this subtitle’’. 

24 (iv) Subparagraph (B) of section 

25 72(t)(7) of such Code is amended by strik-
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•S 1793 IS 

1 ing ‘‘section 25A(g)(2)’’ and inserting 

2 ‘‘section 36(g)(2)’’. 

3 (v) Subparagraph (A) of section 

4 135(d)(2) of such Code is amended by 

5 striking ‘‘section 25A’’ and inserting ‘‘sec6 tion 36’’. 

7 (vi) Section 221(d) of such Code is 

8 amended—

9 (I) by striking ‘‘section 

10 25A(g)(2)’’ in paragraph (2)(B) and 

11 inserting ‘‘section 36(g)(2)’’, 

12 (II) by striking ‘‘section 

13 25A(f)(2)’’ in paragraph (2)(B) and 

14 inserting ‘‘section 36(f)(2)’’, and 

15 (III) by striking ‘‘section 

16 25A(b)(3)’’ in paragraph (3) and in17 serting ‘‘section 36(b)(3)’’. 

18 (vii) Section 222 of such Code is 

19 amended—

20 (I) by striking ‘‘section 25A’’ in 

21 subparagraph (A) of subsection (c)(2) 

22 and inserting ‘‘section 36’’, 

23 (II) by striking ‘‘section 25A(f)’’ 

24 in subsection (d)(1) and inserting 

25 ‘‘section 36(f)’’, and 
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•S 1793 IS 

1 (III) by striking ‘‘section 

2 25A(g)(2)’’ in subsection (d)(1) and 

3 inserting ‘‘section 36(g)(2)’’. 

4 (viii) Section 529 of such Code is 

5 amended—

6 (I) by striking ‘‘section 

7 25A(g)(2)’’ in subclause (I) of sub8 section (c)(3)(B)(v) and inserting 

9 ‘‘section 36(g)(2)’’, 

10 (II) by striking ‘‘section 25A’’ in 

11 subclause (II) of subsection 

12 (c)(3)(B)(v) and inserting ‘‘section 

13 36’’, and 

14 (III) by striking ‘‘section 

15 25A(b)(3)’’ in clause (i) of subsection 

16 (e)(3)(B) and inserting ‘‘section 

17 36(b)(3)’’. 

18 (ix) Section 530 of such Code is 

19 amended—

20 (I) by striking ‘‘section 

21 25A(g)(2)’’ in subclause (I) of sub22 section (d)(2)(C)(i) and inserting 

23 ‘‘section 36(g)(2)’’, 

24 (II) by striking ‘‘section 25A’’ in 

25 subclause (II) of subsection 
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1 (d)(2)(C)(i) and inserting ‘‘section 

2 36’’, and 

3 (III) by striking ‘‘section 

4 25A(g)(2)’’ in clause (iii) of sub5 section (d)(4)(B) and inserting ‘‘sec6 tion 36(g)(2)’’. 

7 (x) Subsection (e) of section 6050S of 

8 such Code is amended by striking ‘‘section 

9 25A’’ and inserting ‘‘section 36’’. 

10 (xi) Subparagraph (J) of section 

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

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

13 ‘‘section 36(g)(1)’’. 

14 (xii) Paragraph (2) of section 1324(b) 

15 of title 31, United States Code, is amended 

16 by inserting before the period ‘‘or from 

17 section 36 of such Code’’. 

18 (xiii) The table of sections for subpart 

19 C of part IV of subchapter A of chapter 1 

20 of the Internal Revenue Code of 1986 is 

21 amended by striking the item relating to 

22 section 36 and inserting the following:

‘‘Sec. 36. Hope and Lifetime Learning credits. 

‘‘Sec. 37. Overpayments of tax.’’.
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1 (xiv) The table of sections for subpart 

2 A of such part IV is amended by striking 

3 the item relating to section 25A. 

4 (4) CREDIT ALLOWED FOR COST OF ATTEND5 ANCE.—

6 (A) IN GENERAL.—

7 (i) Subsection (b) of section 36 of 

8 such Code, as moved and redesignated by 

9 paragraph (3), is amended by striking 

10 ‘‘qualified tuition and related expenses’’ 

11 each place it occurs and inserting ‘‘cost of 

12 attendance’’. 

13 (ii) Subsection (f) of such section 36 

14 is amended by adding at the end the fol15 lowing new paragraph: 

16 ‘‘(3) NO PELL REDUCTION.—The term ‘cost of 

17 attendance’ has the meaning given such term in sec18 tion 472 of the Higher Education Act of 1965, ex19 cept that the term shall not include any costs de20 scribed in paragraph (4) or (5) of such section.’’. 

21 (B) CONFORMING AMENDMENTS.—

22 (i) Subsection (b)(1)(B) of such sec23 tion 36 is amended by striking ‘‘such ex24 penses’’ and inserting ‘‘such cost’’. 
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•S 1793 IS 

1 (ii) Subsections (e) and (g) of such 

2 section 36 are amended by inserting ‘‘the 

3 cost of attendance or’’ before ‘‘qualified’’ 

4 each place it appears. 

5 (5) EXPANSION OF LIMITATION.—

6 (A) IN GENERAL.—Subsection (d) of sec7 tion 36 of such Code, as moved and redesig8 nated by paragraph (3), is amended—

9 (i) in paragraph (1), by striking the 

10 period and inserting ‘‘in the case of the 

11 Lifetime Learning Credit and paragraph 

12 (3) in the case of the Hope Scholarship 

13 Credit.’’, 

14 (ii) in paragraph (2), by inserting 

15 ‘‘FOR THE LIFETIME LEARNING CREDIT’’ 

16 in the heading after ‘‘REDUCTION’’, and 

17 (iii) by redesignating paragraph (3) as 

18 paragraph (4) and by adding after para19 graph (2) the following new paragraph: 

20 ‘‘(3) AMOUNT OF REDUCTION FOR HOPE

21 SCHOLARSHIP CREDIT.—The amount determined 

22 under this paragraph is the amount which bears the 

23 same ratio to the amount which would be so taken 

24 into account as—

25 ‘‘(A) the excess of—
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1 ‘‘(i) the taxpayer’s modified adjusted 

2 gross income for such taxable year, over 

3 ‘‘(ii) the sum of—

4 ‘‘(I) the amount of any education 

5 assistance received by the student 

6 that is not subject to tax under this 

7 chapter, and 

8 ‘‘(II) $40,000 ($80,000 in the 

9 case of a joint return), bears to 

10 ‘‘(B) $10,000 ($20,000 in the case of a 

11 joint return).’’. 

12 (B) CONFORMING AMENDMENTS.—Sub13 section (h) of such section 36 is amended—

14 (i) in paragraph (2), by inserting 

15 ‘‘FOR THE LIFETIME LEARNING CREDIT’’ 

16 in the heading after ‘‘LIMITS’’, and 

17 (ii) by inserting at the end the fol18 lowing new paragraph: 

19 ‘‘(3) INCOME LIMITS FOR HOPE SCHOLARSHIP

20 CREDIT.—

21 ‘‘(A) IN GENERAL.—In the case of a tax22 able year beginning after 2003, the $40,000 

23 and $80,000 amounts in subsection (d)(3) shall 

24 each be increased by an amount equal to—

25 ‘‘(i) such dollar amount, multiplied by 
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1 ‘‘(ii) the cost-of-living adjustment de2 termined under section 1(f)(3) for the cal3 endar year in which the taxable year be4 gins, determined by substituting ‘calendar 

5 year 2002’ for ‘calendar year 1992’ in sub6 paragraph (B) thereof. 

7 ‘‘(B) ROUNDING.—If any amount as ad8 justed under subparagraph (A) is not a multiple 

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

10 next lowest multiple of $1,000.’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2002. 

14 SEC. 103. ELIMINATION OF ORIGINATION FEES AND AD15 JUSTMENT OF FEES AND TERMS. 

16 (a) DIRECT LOANS.—Section 455(c) of the Higher 

17 Education Act of 1965 (20 U.S.C. 1087e(c)) is amended 

18 to read as follows: 

19 ‘‘(c) LOAN FEE.—

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2), the Secretary shall charge the borrower 

22 of a loan made under this part an origination fee of 

23 4.0 percent of the principal amount of the loan. 

24 ‘‘(2) EXCEPTION FOR SUBSIDIZED LOANS.—

25 The Secretary may not charge the borrower of a 
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•S 1793 IS 

1 loan made under this part an origination fee if the 

2 borrower receives an interest subsidy for such 

3 loan.’’. 

4 (b) FFEL PROGRAM.—Section 438(c) of the Higher 

5 Education Act of 1965 (20 U.S.C. 1087–1(c)) is amended 

6 by adding at the end the following: 

7 ‘‘(9) TERMINATION OF ORIGINATION FEES FOR

8 SUBSIDIZED LOANS.—Notwithstanding any other 

9 provision of this subsection, with respect to any loan 

10 made, insured, or guaranteed under this part on or 

11 after the first July 1 after the date of enactment of 

12 this paragraph for which a borrower receives an in13 terest subsidy under section 428(a)—

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

15 or indirectly from the borrower any origination 

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

17 relating to the origination of a loan however de18 scribed; and 

19 ‘‘(B) the Secretary shall not collect any 

20 origination fee from the lender under this sub21 section.’’. 

22 (c) ADJUSTMENT OF FEES AND LOANS FOR DIRECT

23 LOANS.—Section 455 of the Higher Education Act of 

24 1965 (20 U.S.C. 1087e) is amended by adding at the end 

25 the following:
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1 ‘‘(m) ADJUSTMENT OF FEES AND LOANS.—Notwith2 standing any other provision of law, the Secretary shall 

3 adjust the fees and terms for Federal Direct Unsubsidized 

4 Stafford Loans to be equal to the fees and terms for loans 

5 made to borrowers under section 428H.’’. 

6 SEC. 104. DIRECT LOAN REWARD PROGRAM. 

7 Part D of title IV of the Higher Education Act of 

8 1965 (20 U.S.C. 1087a et seq.) is amended by adding at 

9 the end the following: 

10 ‘‘SEC. 460A. DIRECT LOAN REWARD PROGRAM. 

11 ‘‘(a) SHORT TITLE.—This section may be cited as the 

12 ‘Direct Loan Reward Act’. 

13 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary shall 

14 carry out a Direct Loan Reward Program to encourage 

15 institutions of higher education to participate in the stu16 dent loan program under this part. 

17 ‘‘(c) PROGRAM REQUIREMENTS.—In carrying out the 

18 Direct Loan Reward Program, the Secretary shall—

19 ‘‘(1) provide to each institution of higher edu20 cation participating in the student loan program 

21 under this part a financial reward payment, in an 

22 amount determined in accordance with subsection 

23 (d), to encourage the institution to provide student 

24 loans under this part; 
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1 ‘‘(2) require each institution of higher edu2 cation receiving a payment under this section to pro3 vide student loans under this part for a period of 5 

4 years from the date the payment is made; 

5 ‘‘(3) require that funds paid to institutions of 

6 higher education under this section be used to award 

7 students Federal Supplemental Educational Oppor8 tunity Grants in accordance with subpart 3 of part 

9 A, except that an institution of higher education 

10 shall not be required to provide any matching funds 

11 with respect to such awards; and 

12 ‘‘(4) for a period of 2 years beginning on the 

13 date of enactment of this section, encourage all insti14 tutions of higher education to participate in the Di15 rect Loan Reward Program. 

16 ‘‘(d) AMOUNT.—The amount of a financial reward 

17 payment under this section shall be—

18 ‘‘(1) in the case of the first year of an institu19 tion of higher education’s participation in the Direct 

20 Loan Reward Program, an amount equal to 50 per21 cent of the savings to the Federal Government gen22 erated by the institution’s participation in the stu23 dent loan program under this part instead of the in24 stitution’s participation in the student loan program 

25 under part B; and 
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1 ‘‘(2) in the case of the second through fifth 

2 years of an institution of higher education’s partici3 pation in the Direct Loan Reward Program, an 

4 amount equal to 10 percent of the savings to the 

5 Federal Government generated by the institution’s 

6 participation in the student loan program under this 

7 part instead of the institution’s participation in the 

8 student loan program under part B. 

9 ‘‘(e) TRIGGER TO ENSURE COST NEUTRALITY.—

10 ‘‘(1) LIMIT TO ENSURE COST NEUTRALITY.—

11 Notwithstanding subsection (d), the Secretary shall 

12 not distribute financial reward payments under the 

13 Direct Loan Reward Program that, in the aggre14 gate, exceed the Federal savings resulting from im15 plementation of the Direct Loan Reward Program. 

16 ‘‘(2) FEDERAL SAVINGS.—In calculating Fed17 eral savings, as used in paragraph (1), the Secretary 

18 shall determine any Federal savings on loans made 

19 to students at institutions of higher education that 

20 participate in the Direct Loan Reward Program and 

21 that, on the date of enactment of the Direct Loan 

22 Reward Program, participated in the student loan 

23 program under part B, resulting from the difference 

24 of—
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1 ‘‘(A) the Federal cost of loan volume made 

2 under this part; and 

3 ‘‘(B) the Federal cost of an equivalent type 

4 and amount of loan volume made, insured, or 

5 guaranteed under part B. 

6 ‘‘(3) DISTRIBUTION RULES.—If the Federal 

7 savings determined under paragraph (2) is not suffi8 cient to distribute full financial reward payments 

9 under the Direct Loan Reward Program, the Sec10 retary shall—

11 ‘‘(A) first make financial reward payments 

12 to those institutions of higher education that 

13 participated in the student loan program under 

14 part B on the date of enactment of the Direct 

15 Loan Reward Program; and 

16 ‘‘(B) with any remaining Federal savings 

17 after making payments under subparagraph 

18 (A), make financial reward payments to the in19 stitutions of higher education not described in 

20 subparagraph (A) on a pro-rata basis. 

21 ‘‘(4) CARRY OVER.—Any institution of higher 

22 education that receives a reduced financial reward 

23 payment under paragraph (3)(B), shall remain eligi24 ble for the unpaid portion of such institution’s finan25 cial reward payment, as well as any additional finan-
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1 cial reward payments for which the institution is 

2 otherwise eligible, in subsequent fiscal years.’’. 

3 SEC. 105. COSTS OF HIGHER EDUCATION. 

4 (a) SUPPORTING REDUCED TUITION INCREASES.—

5 Part C of title I of the Higher Education Act of 1965 

6 (20 U.S.C. 1015 et seq.) is amended by adding at the end 

7 the following: 

8 ‘‘SEC. 132. ECONOMIES OF SCALE. 

9 ‘‘(a) AUTHORIZATION.—

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

11 to award grants, on a competitive basis, to univer12 sity consortia to enable such consortia to engage in 

13 endeavors to reduce college costs. 

14 ‘‘(2) UNIVERSITY CONSORTIUM.—In this sec15 tion, the term ‘university consortium’ means a con16 sortium of not less than 5 two- or four-year degree 

17 granting institutions of higher education that receive 

18 assistance under title IV. 

19 ‘‘(3) DURATION.—Grants awarded under this 

20 section shall be for a period of not more than 4 

21 years. 

22 ‘‘(b) APPLICATION.—

23 ‘‘(1) IN GENERAL.—A university consortium 

24 that desires a grant under this section shall submit 

25 an application to the Secretary at such time, in such
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1 manner, and containing such information as the Sec2 retary determines appropriate. 

3 ‘‘(2) CONTENT.—An application submitted 

4 under paragraph (1) shall include—

5 ‘‘(A) a list of the institutions of higher 

6 education that are partners in the university 

7 consortium; 

8 ‘‘(B) a letter of intent to participate in the 

9 university consortium from each partner insti10 tution of higher education; 

11 ‘‘(C) a general description of the nature of 

12 the programs, activities, or other cost-cutting 

13 measures to be carried out by the university 

14 consortium with funds received under this sec15 tion, and the cost of such programs, activities, 

16 or other cost-cutting measures; 

17 ‘‘(D) a description of how such activities 

18 are expected to result in cost savings for all 

19 partner institutions of higher education; 

20 ‘‘(E) an estimation of how much money 

21 will be saved through such activities; 

22 ‘‘(F) an assurance that when the univer23 sity consortium efforts begin to post savings for 

24 the partner institutions of higher education, not 

25 less than 50 percent of the savings will be 
26

•S 1793 IS 

1 passed to students by cutting or maintaining 

2 student tuition rates or increasing student aid; 

3 ‘‘(G) an assurance that each partner insti4 tution of higher education will not raise tuition 

5 more than twice the inflation change tracked 

6 pursuant to section 131(c)(4) from academic 

7 year to subsequent academic year during the 

8 life of the grant; 

9 ‘‘(H) a general timeline of how the univer10 sity consortium will carry out planned activities 

11 and when savings are expected to be posted; 

12 and 

13 ‘‘(I) a statement as to how the university 

14 consortium plans to provide matching funds re15 quired under this section. 

16 ‘‘(3) PEER REVIEW PANEL.—

17 ‘‘(A) IN GENERAL.—The Secretary shall 

18 submit to a peer review panel each application 

19 submitted under paragraph (1). 

20 ‘‘(B) COMPOSITION.—The peer review 

21 panel shall consist of representatives from—

22 ‘‘(i) higher education, including pro23 fessors; 

24 ‘‘(ii) the Department; and 

25 ‘‘(iii) the business community. 
27

•S 1793 IS 

1 ‘‘(C) APPROVAL OR DISAPPROVAL.—With 

2 respect to each application, the peer review 

3 panel shall recommend whether each applicant 

4 should be awarded a grant under this section. 

5 ‘‘(c) AWARDING OF GRANTS.—

6 ‘‘(1) GEOGRAPHIC DISTRIBUTION.—In awarding 

7 grants under this section, the Secretary shall take 

8 into consideration providing an equitable geographic 

9 distribution of the grants throughout the United 

10 States. 

11 ‘‘(2) MAXIMUM AWARD.—A grant award under 

12 this section shall be not more than $200,000. Not 

13 more than $75,000 may be awarded in the first year 

14 of the grant award and remaining funds shall be 

15 evenly divided over the remaining 3 years. 

16 ‘‘(d) ACTIVITIES.—

17 ‘‘(1) COST-CUTTING ACTIVITIES.—A university 

18 consortium awarded a grant under this section shall 

19 use the grant funds to cut partner institution of 

20 higher education costs by carrying out 1 or more of 

21 the following activities: 

22 ‘‘(A) Cooperative purchasing of health care 

23 and other employee benefit plans. 

24 ‘‘(B) Cooperative purchasing of technology 

25 infrastructure. 
28

•S 1793 IS 

1 ‘‘(C) Joint degree programs. 

2 ‘‘(D) Expansion of joint distance education 

3 programs across institutions of higher edu4 cation. 

5 ‘‘(E) Shared library acquisitions. 

6 ‘‘(F) Development and implementation of a 

7 credit transfer system among partner institu8 tions of higher education. 

9 ‘‘(G) Development and implementation of 

10 cooperative billing structures. 

11 ‘‘(H) Development and implementation of 

12 joint professional development for faculty and 

13 staff. 

14 ‘‘(I) Joint legal counsel. 

15 ‘‘(J) Other activities that have the effect of 

16 cutting partner institution of higher education 

17 costs. 

18 ‘‘(2) FURTHER ACTIVITIES.—A university con19 sortium may carry out activities not listed in para20 graph (1) in addition to carrying out 1 or more ac21 tivities listed in paragraph (1). 

22 ‘‘(3) COST SAVINGS TO STUDENTS.—Each part23 ner institution of higher education of a university 

24 consortium awarded a grant under this section 

25 shall—
29

•S 1793 IS 

1 ‘‘(A) not raise tuition more than twice the 

2 rate of inflation from academic year to subse3 quent academic year during the life of the 

4 grant; and 

5 ‘‘(B) pass on to the students at such insti6 tution not less than 50 percent of the savings 

7 from the grant by cutting or maintaining stu8 dent tuition rates or increasing student aid. 

9 ‘‘(e) MATCHING FUNDS.—

10 ‘‘(1) IN GENERAL.—Each university consortium 

11 awarded a grant under this section shall provide 

12 matching funds from non-Federal sources to carry 

13 out activities under this section in an amount equal 

14 to—

15 ‘‘(A) 40 percent of the grant award in the 

16 first year; 

17 ‘‘(B) 50 percent of the grant award in the 

18 second year; 

19 ‘‘(C) 65 percent of the grant award in each 

20 of the third and fourth years; and 

21 ‘‘(D) 80 percent of the grant award in the 

22 fifth year. 

23 ‘‘(2) IN-KIND CONTRIBUTIONS.—Not more than 

24 50 percent of the matching funds required under
30

•S 1793 IS 

1 paragraph (1) may be provided in the form of in2 kind contributions. 

3 ‘‘(f) ONE-TIME AWARD.—A university consortium 

4 may receive a grant under this section only one time. 

5 ‘‘(g) SUPPLEMENT, NOT SUPPLANT.—Funds made 

6 available under this section shall be used to supplement, 

7 not supplant, other funds available for institutional or 

8 campus-based student aid. 

9 ‘‘(h) REPORTING.—

10 ‘‘(1) ANNUAL REPORT.—

11 ‘‘(A) IN GENERAL.—Each university con12 sortium awarded a grant under this section 

13 shall submit an annual report to the Secretary 

14 on progress toward meeting the purposes of this 

15 section. 

16 ‘‘(B) CONSEQUENCES OF NOT MAKING

17 SUBSTANTIAL PROGRESS.—If the Secretary, 

18 after consultation with the peer review panel 

19 described in subsection (b)(3), determines that 

20 the university consortium is not making sub21 stantial progress in meeting the purposes and 

22 goals of this section, as appropriate, by the end 

23 of the second year of the grant, the grant shall 

24 not be continued for the third and fourth year 

25 of the grant. 
31

•S 1793 IS 

1 ‘‘(2) REPORT BY THE SECRETARY.—The Sec2 retary shall—

3 ‘‘(A) conduct an analysis on the overall ef4 fectiveness of university consortia in cutting col5 lege costs and passing savings on to students; 

6 and 

7 ‘‘(B) make the analysis under subpara8 graph (A) available to Congress and the public 

9 biannually. 

10 ‘‘(i) NATIONAL ACTIVITIES.—The Secretary may re11 serve not more than 5 percent of the funds appropriated 

12 for this section for any fiscal year for—

13 ‘‘(1) peer review of applications; 

14 ‘‘(2) conducting the analysis required under 

15 subsection (h)(3); and 

16 ‘‘(3) technical assistance. 

17 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated to carry out this section 

19 $5,000,000 for fiscal year 2004 and such sums as may 

20 be necessary for each of the 5 succeeding fiscal years.’’. 

21 (b) COLLEGE COST SUMMIT.—Part C of title I of the 

22 Higher Education Act of 1965 (20 U.S.C. 1015 et seq.), 

23 as amended by subsection (a), is further amended by add24 ing at the end the following: 
32

•S 1793 IS 

1 ‘‘SEC. 133. COLLEGE COST SUMMIT. 

2 ‘‘(a) IN GENERAL.—The Secretary shall convene a 

3 college cost summit with representatives of competing peer 

4 institutions of higher education for the purpose of negoti5 ating voluntarily agreed upon limits on future college tui6 tion and fee increases. 

7 ‘‘(b) SECRETARIAL APPROVAL.—No agreement 

8 reached pursuant to subsection (a) shall take effect absent 

9 approval by the Secretary. 

10 ‘‘(c) ANTITRUST EXEMPTION.—

11 ‘‘(1) DEFINITIONS.—In this subsection: 

12 ‘‘(A) ANTITRUST LAWS.—The term ‘anti13 trust laws’ has the meaning given such term in 

14 subsection (a) of the first section of the Clayton 

15 Act (15 U.S.C. 12(a)), except that such term 

16 includes section 5 of the Federal Trade Com17 mission Act (15 U.S.C. 45) to the extent such 

18 section 5 applies to unfair methods of competi19 tion. 

20 ‘‘(B) INSTITUTION OF HIGHER EDU21 CATION.—The term ‘institution of higher edu22 cation’—

23 ‘‘(i) means an institution of higher 

24 education as defined in section 101; and 

25 ‘‘(ii) includes any individual acting on 

26 behalf of such an institution. 
33

•S 1793 IS 

1 ‘‘(2) EXEMPTION.—The antitrust laws shall not 

2 apply to any joint discussion, consideration, review, 

3 action, or agreement by or among institutions of 

4 higher education or their representatives pursuant to 

5 this section and for the purpose of, and limited to, 

6 negotiating voluntarily agreed upon limits on future 

7 college tuition and fee increases, approved by the 

8 Secretary.’’. 

9 (c) MAINTENANCE OF EFFORT.—Part A of title IV 

10 of the Higher Education Act of 1965 (20 U.S.C. 1070 

11 et seq.) is amended by adding at the end the following: 

12 ‘‘Subpart 9—Maintenance of Effort 

13 ‘‘SEC. 420K. MAINTENANCE OF EFFORT. 

14 ‘‘(a) IN GENERAL.—A public institution of higher 

15 education is eligible to receive the full amount of assist16 ance under this title for any fiscal year only if the Sec17 retary determines that the State in which the public insti18 tution of higher education is located maintains not less 

19 than 90 percent of its support for higher education from 

20 the preceding fiscal year, as demonstrated by the State 

21 aggregate expenditures with respect to the provision of 

22 higher education. 

23 ‘‘(b) WAIVER.—The Secretary may waive the require24 ments of this section if the Secretary determines that a 

25 waiver would be equitable due to—
34

•S 1793 IS 

1 ‘‘(1) exceptional or uncontrollable cir2 cumstances, such as a natural disaster; or 

3 ‘‘(2) a precipitous, unpredicted, and unprece4 dented decline in State budget authority. 

5 ‘‘(c) CONSEQUENCES OF FAILURE TO MAINTAIN EF6 FORT.—Notwithstanding any other provision of this Act, 

7 the Secretary shall adjust the level of assistance available 

8 to institutions described in subsection (a) by restoring the 

9 Pell Grant maximum under this part and student loan fees 

10 under parts B and D to their levels on June 30, 2004.’’. 

11 (d) TRUTH-IN-TUITION.—Part A of title IV of the 

12 Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), 

13 as amended by subsection (c), is further amended by add14 ing at the end the following: 

15 ‘‘Subpart 10—Truth-in-Tuition 

16 ‘‘SEC. 420L. DISCLOSURE IN APPLICATION. 

17 ‘‘An institution of higher education that receives Fed18 eral funds and is eligible for assistance under this title 

19 shall include in materials accompanying an application for 

20 admission to the institution up to date annual trend infor21 mation regarding the extent and average amount of such 

22 institution’s tuition and fee discounts.’’. 

23 (e) COLLEGE CONSUMER PRICE INFORMATION.—

24 Section 131(c)(4) of the Higher Education Act of 1965 

25 (20 U.S.C. 1015(c)(4)) is amended to read as follows:
35

•S 1793 IS 

1 ‘‘(4) HIGHER EDUCATION MARKET BASKET.—

2 ‘‘(A) IN GENERAL.—The Bureau of Labor 

3 Statistics, in consultation with the Commis4 sioner for Education Statistics, shall develop a 

5 higher education cost index that tracks inflation 

6 changes in the necessary costs associated with 

7 higher education. 

8 ‘‘(B) AUTHORIZATION OF APPROPRIA9 TIONS.—There are authorized to be appro10 priated to carry out this paragraph $7,000,000 

11 for fiscal year 2004 and such sums as may be 

12 necessary for each of the 5 succeeding fiscal 

13 years.’’. 

14 SEC. 106. CREDIT FOR INTEREST ON HIGHER EDUCATION 

15 LOANS. 

16 (a) IN GENERAL.—Subpart A of part IV of sub17 chapter A of chapter 1 of the Internal Revenue Code of 

18 1986 (relating to nonrefundable personal credits) is 

19 amended by inserting after section 25B the following new 

20 section: 

21 ‘‘SEC. 25C. INTEREST ON HIGHER EDUCATION LOANS. 

22 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in23 dividual, there shall be allowed as a credit against the tax 

24 imposed by this chapter for the taxable year an amount 
36

•S 1793 IS 

1 equal to the interest paid by the taxpayer during the tax2 able year on any qualified education loan. 

3 ‘‘(b) MAXIMUM CREDIT.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), the credit allowed by subsection (a) for 

6 the taxable year shall not exceed $1,500. 

7 ‘‘(2) LIMITATION BASED ON MODIFIED AD8 JUSTED GROSS INCOME.—

9 ‘‘(A) IN GENERAL.—If the modified ad10 justed gross income of the taxpayer for the tax11 able year exceeds $50,000 ($100,000 in the 

12 case of a joint return), the amount which would 

13 (but for this paragraph) be allowable as a credit 

14 under this section shall be reduced (but not 

15 below zero) by the amount which bears the 

16 same ratio to the amount which would be so al17 lowable as such excess bears to $10,000 

18 ($20,000 in the case of a joint return). 

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

22 without regard to sections 911, 931, and 933. 

23 ‘‘(C) INFLATION ADJUSTMENT.—In the 

24 case of any taxable year beginning after 2004, 

25 the $50,000 and $100,000 amounts referred to 
37

•S 1793 IS 

1 in subparagraph (A) shall be increased by an 

2 amount equal to—

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

4 ‘‘(ii) the cost-of-living adjustment de5 termined under section 1(f)(3) for the cal6 endar year in which the taxable year be7 gins, by substituting ‘2003’ for ‘1992’. 

8 ‘‘(D) ROUNDING.—If any amount as ad9 justed under subparagraph (C) is not a multiple 

10 of $50, such amount shall be rounded to the 

11 nearest multiple of $50.

12 ‘‘(c) DEPENDENTS NOT ELIGIBLE FOR CREDIT.—No 

13 credit shall be allowed by this section to an individual for 

14 the taxable year if a deduction under section 151 with re15 spect to such individual is allowed to another taxpayer for 

16 the taxable year beginning in the calendar year in which 

17 such individual’s taxable year begins.

18 ‘‘(d) LIMIT ON PERIOD CREDIT ALLOWED.—A credit 

19 shall be allowed under this section only with respect to 

20 interest paid on any qualified education loan during the 

21 first 60 months (whether or not consecutive) in which in22 terest payments are required. For purposes of this para23 graph, any loan and all refinancings of such loan shall be 

24 treated as 1 loan. 

25 ‘‘(e) DEFINITIONS.—For purposes of this section: 
38

•S 1793 IS 

1 ‘‘(1) QUALIFIED EDUCATION LOAN.—The term 

2 ‘qualified education loan’ has the meaning given 

3 such term by section 221(d)(1). 

4 ‘‘(2) DEPENDENT.—The term ‘dependent’ has 

5 the meaning given such term by section 152. 

6 ‘‘(f) SPECIAL RULES.—

7 ‘‘(1) DENIAL OF DOUBLE BENEFIT.—No credit 

8 shall be allowed under this section for any amount 

9 taken into account for any deduction under any 

10 other provision of this chapter. 

11 ‘‘(2) MARRIED COUPLES MUST FILE JOINT RE12 TURN.—If the taxpayer is married at the close of 

13 the taxable year, the credit shall be allowed under 

14 subsection (a) only if the taxpayer and the tax15 payer’s spouse file a joint return for the taxable 

16 year. 

17 ‘‘(3) MARITAL STATUS.—Marital status shall be 

18 determined in accordance with section 7703.’’. 

19 (b) CONFORMING AMENDMENT.—The table of sec20 tions for subpart A of part IV of subchapter A of chapter 

21 1 of the Internal Revenue Code of 1986 is amended by 

22 inserting after the item relating to section 25B the fol23 lowing new item:

‘‘Sec. 25C. Interest on higher education loans.’’.

24 (c) EFFECTIVE DATE.—The amendments made by 

25 this section shall apply to any qualified education loan (as 
39

•S 1793 IS 

1 defined in section 25C(e)(1) of the Internal Revenue Code 

2 of 1986, as added by this section) incurred on, before, or 

3 after the date of enactment of this Act, but only with re4 spect to any loan interest payment due after December 

5 31, 2002. 

6 SEC. 107. REFINANCING AUTHORITY FOR FEDERAL DIRECT 

7 CONSOLIDATION LOAN. 

8 Section 455(g) of the Higher Education Act of 1965 

9 (20 U.S.C. 1087e(g)) is amended—

10 (1) by striking ‘‘A borrower’’ and inserting the 

11 following: 

12 ‘‘(1) IN GENERAL.—A borrower’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(2) REFINANCING AUTHORITY.—

15 ‘‘(A) IN GENERAL.—Notwithstanding any 

16 other provision of this part, a borrower may re17 finance a Federal Direct Consolidation Loan at 

18 the prevailing fixed rate as determined by the 

19 Secretary, if the interest rate on such bor20 rower’s Federal Direct Consolidation Loan is 

21 not less than the sum of 3.3 percent and the 

22 average of the bond equivalent rates of the 91-

23 day Treasury bills auctioned for the previous 

24 calendar quarter.
40

•S 1793 IS 

1 ‘‘(B) ONE-TIME ONLY.—A borrower may 

2 refinance under subparagraph (A) only once.’’. 

3 SEC. 108. LOANS FUNDED THROUGH TAX-EXEMPT SECURI4 TIES. 

5 (a) REPEAL.—Subparagraph (B) of section 

6 438(b)(2) of the Higher Education Act of 1965 (20 

7 U.S.C. 1087–1(b)(2)) is repealed. 

8 (b) LOANS FUNDED THROUGH TAX-EXEMPT SECU9 RITIES.—Section 438(b)(2) of the Higher Education Act 

10 of 1965 is amended further by inserting after subpara11 graph (A) the following: 

12 ‘‘(B) Notwithstanding any other provision of 

13 law, the quarterly rate of the special allowance for 

14 the holders of loans financed directly, indirectly, or 

15 derivatively with funds obtained by the holders from 

16 the issuance of obligations, the income from which 

17 is excluded from gross income under the Internal 

18 Revenue Code of 1986, regardless of the date of the 

19 issuance of the obligations, shall be the quarterly 

20 rate of the special allowance established under sub21 paragraph (A), (E), (F), (G), or (H), as the case 

22 may be.’’. 
41

•S 1793 IS 

1 SEC. 109. WINDFALL PROFIT OFFSET. 

2 Section 438 of the Higher Education Act of 1965 (20 

3 U.S.C. 1087–1) is amended by adding at the end the fol4 lowing: 

5 ‘‘(g) WINDFALL PROFIT OFFSET.—

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2), at the end of every fiscal quarter for 

8 which an eligible lender does not receive a special al9 lowance payment under this section, the eligible 

10 lender shall pay to the Secretary of the Treasury for 

11 deposit into the Treasury as miscellaneous receipts 

12 a windfall profit offset payment for the fiscal quar13 ter equal to the amount by which—

14 ‘‘(A) the aggregate amount of all payments 

15 of interest received by the eligible lender from 

16 borrowers on all loans made, insured, or guar17 anteed under this part during the fiscal quar18 ter; exceeds 

19 ‘‘(B) interest guaranteed the lender under 

20 this section for the fiscal quarter, irrespective of 

21 the amount received under subparagraph (A). 

22 ‘‘(2) EXCEPTION.—An eligible lender shall not 

23 be subject to the requirement of paragraph (1) if the 

24 eligible lender is an organization described in section 

25 501(c)(3) of the Internal Revenue Code of 1986 and 
42

•S 1793 IS 

1 a nonprofit entity as defined by applicable State law, 

2 and meets the following requirements: 

3 ‘‘(A) The eligible lender does not confer a 

4 salary or benefits to any employee of the lender 

5 in an amount that is in excess of the salary and 

6 benefits provided to the Secretary by the De7 partment. 

8 ‘‘(B) The eligible lender does not maintain 

9 an ongoing relationship whereby it passes on 

10 revenue directly or indirectly through lease, 

11 securitization, resale, or any other financial in12 strument to a for-profit entity or to share13 holders. 

14 ‘‘(C) The eligible lender does not offer ben15 efits to a borrower in a manner directly or indi16 rectly predicated on such borrower’s participa17 tion in a program under this part, part D, or 

18 with any particular lender. 

19 ‘‘(D) The eligible lender certifies that it 

20 uses the windfall profit amount described in 

21 paragraph (1) to carry out the purposes of this 

22 Act through activities such as the following: 

23 ‘‘(i) Conferring grants, scholarships, 

24 or loans. 
43

•S 1793 IS 

1 ‘‘(ii) Financing work-study student 

2 employment. 

3 ‘‘(iii) Carrying out activities author4 ized under chapters 1 and 2 of subpart 2 

5 of part A. 

6 ‘‘(E) The eligible lender is subject to public 

7 oversight through either a State charter, or not 

8 less than 50 percent of the lender’s board of di9 rectors consists of State appointed representa10 tives. 

11 ‘‘(F) The eligible lender does not engage in 

12 the marketing of the relative value of programs 

13 under this part as compared to programs under 

14 part D, nor does the lender engage in the mar15 keting of loans or programs offered by for-prof16 it lenders. This subparagraph shall not be con17 strued to prohibit the eligible lender from con18 ferring basic information on lenders under this 

19 part and the related benefits offered by such 

20 lenders.’’. 

21 SEC. 110. SUPPORT FOR WORKING STUDENTS. 

22 (a) DEPENDENT STUDENTS.—Section 475(g)(2) of 

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

24 1087oo(g)(2)) is amended by striking subparagraph (D) 

25 and inserting the following: 
44

•S 1793 IS 

1 ‘‘(D) $9,000;’’. 

2 (b) INDEPENDENT STUDENTS WITHOUT DEPEND3 ENTS OTHER THAN A SPOUSE.—Section 476(b)(1)(A) of 

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

5 1087pp(b)(1)(A)) is amended by striking clause (iv) and 

6 inserting the following: 

7 ‘‘(iv) $13,000;’’. 

8 (c) INDEPENDENT STUDENTS WITH DEPENDENTS

9 OTHER THAN A SPOUSE.—Section 477(b) of the Higher 

10 Education Act of 1965 (20 U.S.C. 1087qq(b)) is amend11 ed—

12 (1) in paragraph (1)—

13 (A) by striking subparagraph (D) and in14 serting the following: 

15 ‘‘(D) $18,000;’’; and 

16 (B) in subparagraph (E), by striking 

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

18 (4)’’; 

19 (2) by striking paragraph (4); and 

20 (3) by redesignating paragraph (5) as para21 graph (4). 

22 (d) CONFORMING AMENDMENTS.—Section 478 of the 

23 Higher Education Act of 1965 (20 U.S.C. 1087rr) is 

24 amended—
45

•S 1793 IS 

1 (1) by striking subsection (b) and inserting the 

2 following: 

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

4 academic year after academic year 1993–1994, the Sec5 retary shall publish in the Federal Register a revised table 

6 of income protection allowances for the purpose of section 

7 475(c)(4). Such revised table shall be developed by in8 creasing each of the dollar amounts contained in the table 

9 in such section by a percentage equal to the estimated per10 centage increase in the Consumer Price Index (as deter11 mined by the Secretary) between December 1992 and the 

12 December next preceding the beginning of such academic 

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

14 (2) in subsection (h)—

15 (A) in the first sentence, by striking 

16 ‘‘477(b)(5)’’ and inserting ‘‘477(b)(4)’’; and 

17 (B) in the second sentence—

18 (i) by striking ‘‘477(b)(5)(A)’’ and in19 serting ‘‘477(b)(4)(A)’’; and 

20 (ii) by striking ‘‘477(b)(5)(B)’’ and 

21 inserting ‘‘477(b)(4)(B)’’. 

22 SEC. 111. STUDENT ELIGIBILITY. 

23 Section 484 of the Higher Education Act of 1965 (20 

24 U.S.C. 1091) is amended by striking subsection (r). 
46

•S 1793 IS 

1 SEC. 112. AUTHORIZATION OF APPROPRIATIONS LEVELS 

2 FOR CAMPUS-BASED AID. 

3 (a) FEDERAL SUPPLEMENTAL EDUCATIONAL OP4 PORTUNITY GRANTS.—Section 413A(b)(1) of the Higher 

5 Education Act of 1965 (20 U.S.C. 1070b(b)(1)) is amend6 ed by striking ‘‘$675,000,000 for fiscal year 1999 and 

7 such sums as may be necessary for the 4 succeeding fiscal 

8 years’’ and inserting ‘‘$1,000,000,000 for fiscal year 2004 

9 and such sums as may be necessary for each of the 5 suc10 ceeding fiscal years’’. 

11 (b) FEDERAL WORK-STUDY PROGRAMS.—Section 

12 441(b) of the Higher Education Act of 1965 (42 U.S.C. 

13 2751(b)) is amended by striking ‘‘$1,000,000,000 for fis14 cal year 1999 and such sums as may be necessary for each 

15 of the 4 succeeding fiscal years’’ and inserting 

16 ‘‘$1,500,000,000 for fiscal year 2004 and such sums as 

17 may be necessary for each of the 5 succeeding fiscal 

18 years’’. 

19 (c) FEDERAL PERKINS LOANS.—Section 461(b)(1) 

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

21 1087aa(b)(1)) is amended by striking ‘‘$250,000,000 for 

22 fiscal year 1999 and such sums as may be necessary for 

23 each of the 4 succeeding fiscal years’’ and inserting 

24 ‘‘$300,000,000 for fiscal year 2004 and such sums as may 

25 be necessary for each of the 5 succeeding fiscal years’’. 
47

•S 1793 IS 

1 SEC. 113. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAM2 ILIES ARE ENGAGED IN MIGRANT AND SEA3 SONAL FARMWORK. 

4 Section 418A of the Higher Education Act of 1965 

5 (20 U.S.C. 1070d–2) is amended—

6 (1) in subsection (f)—

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

8 ‘‘$150,000’’ and inserting ‘‘$225,000’’; and 

9 (B) in paragraph (2), by striking 

10 ‘‘$150,000’’ and inserting ‘‘$225,000’’; and 

11 (2) in subsection (h)—

12 (A) in paragraph (1)—

13 (i) by striking ‘‘$15,000,000’’ and in14 serting ‘‘$40,000,000’’; 

15 (ii) by striking ‘‘1999’’ and inserting 

16 ‘‘2004’’; and 

17 (iii) by striking ‘‘4’’ and inserting 

18 ‘‘5’’; and 

19 (B) in paragraph (2)—

20 (i) by striking ‘‘$5,000,000’’ and in21 serting ‘‘$30,000,000’’; 

22 (ii) by striking ‘‘1999’’ and inserting 

23 ‘‘2004’’; and 

24 (iii) by striking ‘‘4’’ and inserting 

25 ‘‘5’’. 
48

•S 1793 IS 

1 SEC. 114. LOAN FORGIVENESS AND CANCELLATION FOR 

2 CERTAIN TEACHERS. 

3 (a) FFEL LOANS.—Section 428J of the Higher Edu4 cation Act of 1965 (20 U.S.C. 1078–10) is amended—

5 (1) in subsection (c), by adding at the end the 

6 following: 

7 ‘‘(3) ADDITIONAL AMOUNTS FOR HIGHLY

8 QUALIFIED TEACHERS IN MATHEMATICS, SCIENCE, 

9 SPECIAL EDUCATION, OR BILINGUAL EDUCATION.—

10 Notwithstanding the amount specified in paragraph 

11 (1) and the requirements of subsection (b)(1), the 

12 Secretary shall repay not more than $15,000 in the 

13 aggregate of the loan obligation on a loan made 

14 under section 428 or 428H that is outstanding after 

15 the completion of the fifth complete school year of 

16 teaching described in subparagraphs (A) and (B) in 

17 the case of a teacher—

18 ‘‘(A) who has been employed as a full-time 

19 teacher for 5 consecutive complete school years 

20 in a school that qualifies under section 

21 465(a)(2)(A) for loan cancellation for Perkins 

22 loan recipients who teach in such schools, ex23 cept that the enrollment of children counted 

24 under section 1124(c) of the Elementary and 

25 Secondary Education Act of 1965 exceeds 40 

26 percent of the total enrollment of such school; 
49

•S 1793 IS 

1 ‘‘(B) whose qualifying employment is 

2 teaching mathematics, science, special edu3 cation, or bilingual education; and 

4 ‘‘(C) who is highly qualified (as defined in 

5 section 9101 of the Elementary and Secondary 

6 Education Act of 1965).’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(i) EARLY EDUCATION TEACHERS.—

9 ‘‘(1) AUTHORIZATION.—The Secretary shall 

10 carry out a program, through the holder of the loan, 

11 of assuming the obligation to repay a qualified loan 

12 amount for a loan made under section 428 or 428H, 

13 in accordance with paragraph (2), for any new bor14 rower on or after October 1, 1998, who—

15 ‘‘(A) has been employed as a full-time 

16 teacher for 5 consecutive complete school years 

17 in a Head Start or Early Head Start program 

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

19 seq.), or in another comparable prekindergarten 

20 program that serves children not less than 60 

21 percent of whom are eligible to participate in a 

22 Head Start or Early Head Start program; and 

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

24 the borrower seeks forgiveness. 

25 ‘‘(2) QUALIFIED LOAN AMOUNT.—
50

•S 1793 IS 

1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 repay not more than $15,000 in the aggregate 

3 of the loan obligation on a loan made under 

4 section 428 or 428H that is outstanding after 

5 the completion of the fifth complete school year 

6 of teaching described in paragraph (1)(A). 

7 ‘‘(B) TREATMENT OF CONSOLIDATION

8 LOANS.—A loan amount for a loan made under 

9 section 428C may be a qualified loan amount 

10 for the purposes of this paragraph only to the 

11 extent that such loan amount was used to repay 

12 a Federal Direct Stafford Loan, a Federal Di13 rect Unsubsidized Stafford Loan, or a loan 

14 made under section 428 or 428H for a bor15 rower who meets the requirements of paragraph 

16 (1), as determined in accordance with regula17 tions prescribed by the Secretary.’’. 

18 (b) DIRECT LOANS.—Section 460 of the Higher Edu19 cation Act of 1965 (20 U.S.C. 1087j) is amended—

20 (1) in subsection (c), by adding at the end the 

21 following: 

22 ‘‘(3) ADDITIONAL AMOUNTS FOR HIGHLY

23 QUALIFIED TEACHERS IN MATHEMATICS, SCIENCE, 

24 SPECIAL EDUCATION, OR BILINGUAL EDUCATION.—

25 Notwithstanding the amount specified in paragraph 
51

•S 1793 IS 

1 (1) and the requirements of subsection (b)(1)(A), 

2 the Secretary shall cancel not more than $15,000 in 

3 the aggregate of the loan obligation on a Federal Di4 rect Stafford Loan or a Federal Direct Unsubsidized 

5 Stafford Loan that is outstanding after the comple6 tion of the fifth complete school year of teaching de7 scribed in subparagraphs (A) and (B) in the case of 

8 a teacher—

9 ‘‘(A) who has been employed as a full-time 

10 teacher for 5 consecutive complete school years 

11 in a school that qualifies under section 

12 465(a)(2)(A) for loan cancellation for Perkins 

13 loan recipients who teach in such schools, ex14 cept that the enrollment of children counted 

15 under section 1124(c) of the Elementary and 

16 Secondary Education Act of 1965 exceeds 40 

17 percent of the total enrollment of such school; 

18 ‘‘(B) whose qualifying employment is 

19 teaching mathematics, science, special edu20 cation, or bilingual education; and 

21 ‘‘(C) who is highly qualified (as defined in 

22 section 9101 of the Elementary and Secondary 

23 Education Act of 1965).’’; and 

24 (2) by adding at the end the following: 

25 ‘‘(i) EARLY EDUCATION TEACHERS.—
52

•S 1793 IS 

1 ‘‘(1) AUTHORIZATION.—The Secretary shall 

2 carry out a program of canceling the obligation to 

3 repay a qualified loan amount in accordance with 

4 paragraph (2) for Federal Direct Stafford Loans 

5 and Federal Direct Unsubsidized Stafford Loans 

6 made under this part for any new borrower on or 

7 after October 1, 1998, who—

8 ‘‘(A) has been employed as a full-time 

9 teacher for 5 consecutive complete school years 

10 in a Head Start or Early Head Start program 

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

12 seq.), or in another comparable prekindergarten 

13 program that serves children not less than 60 

14 percent of whom are eligible to participate in a 

15 Head Start or Early Head Start program; and 

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

17 the borrower seeks cancellation. 

18 ‘‘(2) QUALIFIED LOAN AMOUNT.—

19 ‘‘(A) IN GENERAL.—The Secretary shall 

20 cancel not more than $15,000 in the aggregate 

21 of the loan obligation on a Federal Direct Staf22 ford Loan or a Federal Direct Unsubsidized 

23 Stafford Loan that is outstanding after the 

24 completion of the fifth complete school year of 

25 teaching described in paragraph (1)(A). 
53

•S 1793 IS 

1 ‘‘(B) TREATMENT OF CONSOLIDATION

2 LOANS.—A loan amount for a Federal Direct 

3 Consolidation Loan may be a qualified loan 

4 amount for the purposes of this paragraph only 

5 to the extent that such loan amount was used 

6 to repay a Federal Direct Stafford Loan, a 

7 Federal Direct Unsubsidized Stafford Loan, or 

8 a loan made under section 428 or 428H for a 

9 borrower who meets the requirements of para10 graph (1), as determined in accordance with 

11 regulations prescribed by the Secretary.’’. 

12 SEC. 115. REVISION OF TAX TABLE. 

13 Section 478(g) of the Higher Education Act of 1965 

14 (20 U.S.C. 1087rr(g)) is amended by adding at the end 

15 the following: ‘‘The Secretary shall develop such revised 

16 table only after consultation with appropriate committees 

17 of Congress.’’. 

18 SEC. 116. INCOME CONTINGENT REPAYMENT FOR PUBLIC 

19 SECTOR EMPLOYEES. 

20 Section 455(e) of the Higher Education Act of 1965 

21 (20 U.S.C. 1087e(e)) is amended by adding at the end 

22 the following: 

23 ‘‘(7) REPAYMENT PLAN FOR PUBLIC SECTOR

24 EMPLOYEES.—
54

•S 1793 IS 

1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 forgive the balance due on any loan made under 

3 this part for a borrower—

4 ‘‘(i) who has made 120 payments on 

5 such loan pursuant to income contingent 

6 repayment; and 

7 ‘‘(ii) who is employed, and was em8 ployed for the 10-year period in which the 

9 borrower made the 120 payments de10 scribed in clause (i), in a public sector job. 

11 ‘‘(B) PUBLIC SECTOR JOB.—In this para12 graph, the term ‘public sector job’ means a full13 time job in emergency management, govern14 ment, public safety, law enforcement, public 

15 health, education (including early childhood 

16 education), or public interest legal services (in17 cluding prosecution or public defense). 

18 ‘‘(8) RETURN TO STANDARD REPAYMENT.—A 

19 borrower who is repaying a loan made under this 

20 part pursuant to income contingent repayment may 

21 choose, at any time, to terminate repayment pursu22 ant to income contingent repayment and repay such 

23 loan under the standard repayment plan.’’.
55

•S 1793 IS 

1 TITLE II—TEACHER QUALITY 

2 ENHANCEMENT 

3 SEC. 201. AMENDMENT TO TITLE II. 

4 Title II of the Higher Education Act of 1965 (20 

5 U.S.C. 1021 et seq.) is amended to read as follows: 

6 ‘‘TITLE II—TEACHER QUALITY 

7 ENHANCEMENT 

8 ‘‘PART A—TEACHER QUALITY ENHANCEMENT 

9 GRANTS FOR STATES AND PARTNERSHIPS 

10 ‘‘SEC. 201. PURPOSES; DEFINITIONS. 

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

12 ‘‘(1) improve student achievement; 

13 ‘‘(2) increase the size and scope of programs 

14 funded under this part to meet the goal of having 

15 100 percent of teachers as highly qualified teachers; 

16 ‘‘(3) retain and recruit highly qualified individ17 uals into the teaching force through incentives; 

18 ‘‘(4) hold institutions of higher education ac19 countable for preparing teachers, through 

20 coursework in pedagogy, with effective methods of 

21 teaching as a means of better preparing teachers for 

22 the modern day classroom; 

23 ‘‘(5) improve the quality of the current and fu24 ture teaching force by improving the preparation of 
56

•S 1793 IS 

1 prospective teachers and enhancing professional de2 velopment activities; 

3 ‘‘(6) hold institutions of higher education ac4 countable for preparing teachers who have the nec5 essary teaching skills and are highly competent in 

6 the academic content areas in which the teachers 

7 plan to teach, such as mathematics, science, English, 

8 reading or language arts, foreign languages, history, 

9 economics, art, civics, Government, and geography, 

10 including training in the effective uses of technology 

11 in the classroom; 

12 ‘‘(7) recruit highly qualified individuals, includ13 ing individuals from other occupations, into the 

14 teaching force, especially in subject areas of high 

15 need (including bilingual education, special edu16 cation, mathematics, science, and early childhood 

17 education), geographic areas of high need, and in ge18 ographic areas with teacher vacancy or retention 

19 problems; and 

20 ‘‘(8) encourage learning partnerships between 

21 students and parents that lead to improving student 

22 academic achievement and school performance. 

23 ‘‘(b) DEFINITIONS.—In this part: 

24 ‘‘(1) ARTS AND SCIENCES.—The term ‘arts and 

25 sciences’ means—
57

•S 1793 IS 

1 ‘‘(A) when referring to an organizational 

2 unit of an institution of higher education, any 

3 academic unit that offers 1 or more academic 

4 majors in disciplines or content areas cor5 responding to the academic subject matter 

6 areas in which teachers provide instruction; and 

7 ‘‘(B) when referring to a specific academic 

8 subject matter area, the disciplines or content 

9 areas in which academic majors are offered by 

10 the arts and science organizational unit. 

11 ‘‘(2) HIGH NEED LOCAL EDUCATIONAL AGEN12 CY.—The term ‘high need local educational agency’ 

13 means a local educational agency in which—

14 ‘‘(A)(i) 30 percent of the students served 

15 by the agency are from families with incomes 

16 below the poverty line; or 

17 ‘‘(ii) there are more than 20,000 students 

18 served by the agency from families with in19 comes below the poverty line; and 

20 ‘‘(B)(i) there is a high percentage of teach21 ers who are not highly qualified; or 

22 ‘‘(ii) there is a high teacher turnover rate. 

23 ‘‘(3) HIGH NEED SCHOOL.—The term ‘high 

24 need school’ means an elementary school or sec25 ondary school—
58

•S 1793 IS 

1 ‘‘(A) in which there is a high concentration 

2 of students from families with incomes below 

3 the poverty line; or 

4 ‘‘(B) that is identified as in need of school 

5 improvement or corrective action pursuant to 

6 section 1116 of the Elementary and Secondary 

7 Education Act of 1965 (20 U.S.C. 6316). 

8 ‘‘(4) HIGHLY QUALIFIED.—The term ‘highly 

9 qualified’ has the meaning given the term in section 

10 9101 of the Elementary and Secondary Education 

11 Act of 1965. 

12 ‘‘(5) MENTORING.—The term ‘mentoring’ has 

13 the meaning given the term in section 9101 of the 

14 Elementary and Secondary Education Act of 1965. 

15 ‘‘(6) PARENT.—The term ‘parent’ has the 

16 meaning given the term in section 9101 of the Ele17 mentary and Secondary Education Act of 1965. 

18 ‘‘(7) PARENTAL INVOLVEMENT.—The term ‘pa19 rental involvement’ has the meaning given the term 

20 in section 9101 of the Elementary and Secondary 

21 Education Act of 1965. 

22 ‘‘(8) POVERTY LINE.—The term ‘poverty line’ 

23 means the poverty line (as defined by the Office of 

24 Management and Budget, and revised annually in 

25 accordance with section 673(2) of the Community 
59

•S 1793 IS 

1 Services Block Grant Act (42 U.S.C. 9902(2))) ap2 plicable to a family of the size involved. 

3 ‘‘(9) PROFESSIONAL DEVELOPMENT.—The 

4 term ‘professional development’ has the meaning 

5 given the term in section 9101 of the Elementary 

6 and Secondary Education Act of 1965. 

7 ‘‘(10) TEACHING SKILLS.—The term ‘teaching 

8 skills’ means skills—

9 ‘‘(A) grounded in the disciplines of teach10 ing and learning that teachers use to create ef11 fective instruction in subject matter content and 

12 that lead to student achievement and the ability 

13 to apply knowledge; and 

14 ‘‘(B) that require an understanding of the 

15 learning process itself, including an under16 standing of—

17 ‘‘(i) the use of strategies specific to 

18 the subject matter; 

19 ‘‘(ii) the application of on-going as20 sessment of student learning; 

21 ‘‘(iii) individual differences in ability 

22 and instructional needs; and 

23 ‘‘(iv) effective classroom management.
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•S 1793 IS 

1 ‘‘SEC. 202. PROGRAM AUTHORITY. 

2 ‘‘(a) COMPETITIVE GRANT PROGRAM.—If the 

3 amount appropriated to carry out this part for a fiscal 

4 year is less than $270,000,000, then the Secretary shall 

5 use—

6 ‘‘(1) 25 percent of such funds to carry out the 

7 competitive State grant program under section 203; 

8 and 

9 ‘‘(2) 75 percent of such funds to carry out the 

10 competitive partnership grant program under section 

11 204. 

12 ‘‘(b) FORMULA GRANT PROGRAM.—

13 ‘‘(1) IN GENERAL.—

14 ‘‘(A) AUTHORIZATION OF GRANTS.—If the 

15 amount appropriated to carry out this part for 

16 a fiscal year is equal to or exceeds 

17 $270,000,000, then the Secretary shall use 

18 such funds to award a grant to each State from 

19 allotments under subparagraph (B). 

20 ‘‘(B) ALLOTMENTS.—The Secretary shall 

21 make an allotment to each State in an amount 

22 that bears the same relation to the funds as the 

23 amount the State received under part A of title 

24 I of the Elementary and Secondary Education 

25 Act of 1965 for the preceding fiscal year bears 
61

•S 1793 IS 

1 to the amount received by all States under such 

2 part for the preceding fiscal year. 

3 ‘‘(2) STATE USE OF FUNDS.—A State that re4 ceives an allotment under paragraph (1) shall ex5 pend—

6 ‘‘(A) 25 percent of such funds to carry out 

7 State level activities under subsections (d) and 

8 (e) of section 203; and 

9 ‘‘(B) 75 percent of such funds to carry out 

10 the competitive partnership grant program 

11 under section 204. 

12 ‘‘SEC. 203. STATE GRANTS. 

13 ‘‘(a) IN GENERAL.—From amounts made available 

14 under section 210 for a fiscal year, the Secretary is au15 thorized to award grants under this section, on a competi16 tive basis, to eligible States to enable the eligible States 

17 to carry out the activities described in subsections (d) and 

18 (e). 

19 ‘‘(b) ELIGIBLE STATE.—

20 ‘‘(1) DEFINITION.—In this part, the term ‘eligi21 ble State’ means a State educational agency. 

22 ‘‘(2) CONSULTATION.—The State educational 

23 agency shall consult with the Governor, State board 

24 of education, or State agency for higher education, 
62

•S 1793 IS 

1 as appropriate, with respect to the activities assisted 

2 under this section. 

3 ‘‘(3) CONSTRUCTION.—Nothing in this sub4 section shall be construed to negate or supersede the 

5 legal authority under State law of any State agency, 

6 State entity, or State public official over programs 

7 that are under the jurisdiction of the agency, entity, 

8 or official. 

9 ‘‘(c) APPLICATION.—To be eligible to receive a grant 

10 under this section, an eligible State shall, at the time of 

11 the initial grant application, submit an application to the 

12 Secretary that—

13 ‘‘(1) meets the requirement of this section; 

14 ‘‘(2) includes a description of how the eligible 

15 State intends to use funds provided under this sec16 tion; and 

17 ‘‘(3) contains such other information and assur18 ances as the Secretary may require. 

19 ‘‘(d) REQUIRED USES OF FUNDS.—A State that re20 ceives a grant under this section shall use the grant funds 

21 to carry out the following activities: 

22 ‘‘(1) RIGOROUS TEACHER CERTIFICATION OR

23 LICENSURE PROGRAMS.—Ensuring that the State’s 

24 teacher certification or licensure program is rigorous 

25 and has high standards. 
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•S 1793 IS 

1 ‘‘(2) TEACHER RECRUITMENT.—

2 ‘‘(A) IN GENERAL.—Awarding scholarships 

3 to help students pay the costs of tuition, room, 

4 board, and other expenses of completing a 

5 teacher preparation program. 

6 ‘‘(B) SUPPORT SERVICES.—Providing sup7 port services, if needed, to enable scholarship 

8 recipients to complete postsecondary education 

9 programs. 

10 ‘‘(C) ASSISTANCE TO BECOME HIGHLY

11 QUALIFIED TEACHERS.—Providing teachers 

12 who are not highly qualified with the oppor13 tunity to take coursework or credentialing 

14 courses in order to become highly qualified 

15 teachers. 

16 ‘‘(D) FOLLOWUP SERVICES.—Providing 

17 followup services to former scholarship recipi18 ents during the recipients’ first 3 years of 

19 teaching. 

20 ‘‘(E) SERVICE REQUIREMENT.—The Sec21 retary shall establish such requirements as the 

22 Secretary finds necessary to ensure that recipi23 ents of scholarships under this paragraph who 

24 complete teacher education programs subse25 quently teach in a high need local educational 
64

•S 1793 IS 

1 agency, for a period of time equivalent to the 

2 period for which the recipients receive scholar3 ship assistance, or repay the amount of the 

4 scholarship. The Secretary shall use any such 

5 repayments to carry out additional activities 

6 under this section. 

7 ‘‘(e) ALLOWABLE USES OF FUNDS.—A State that re8 ceives a grant under this section may use such funds to 

9 carry out any of the following activities: 

10 ‘‘(1) REFORMS.—Implementing reforms that 

11 hold institutions of higher education with teacher 

12 preparation programs accountable for preparing 

13 teachers who are highly competent in the academic 

14 content areas in which the teachers plan to teach, 

15 and possess strong teaching skills, which may in16 clude the use of rigorous subject matter competency 

17 tests and the requirement that a teacher have an 

18 academic major in the subject area, or related dis19 cipline, in which the teacher plans to teach, and in20 struction for such teachers on how to involve parents 

21 in their children’s education. 

22 ‘‘(2) CERTIFICATION OR LICENSURE REQUIRE23 MENTS.—Reforming teacher certification or licen24 sure requirements to ensure that teachers have the 

25 necessary teaching skills and academic content
65

•S 1793 IS 

1 knowledge in the subject areas in which teachers are 

2 assigned to teach. States are encouraged to use 

3 funds to develop or enhance existing licensure and 

4 certification requirements for subject areas of high 

5 need (including bilingual education, special edu6 cation, mathematics, science, and early childhood 

7 education), including development of a State test. 

8 ‘‘(3) ALTERNATIVE ROUTES TO CERTIFICATION

9 FOR TEACHING.—Providing prospective teachers 

10 with alternative routes to traditional preparation for 

11 teaching through programs at colleges of arts and 

12 sciences or at nonprofit educational organizations 

13 that have a proven record of effectiveness and in14 clude instruction in teaching skills. Strengthening or 

15 developing alternative routes to State certification of 

16 teachers programs that includes, at a minimum—

17 ‘‘(A) a selective means for admitting indi18 viduals into such programs that includes pas19 sage of State teacher exams in appropriate sub20 ject areas; 

21 ‘‘(B) pedagogical course work, including 

22 formal instruction that addresses the theories 

23 and practices of teaching and monitoring stu24 dent performance; and 
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•S 1793 IS 

1 ‘‘(C) support services, including mentoring 

2 for the individuals participating in the alter3 native State certification of teachers programs 

4 that focuses on—

5 ‘‘(i) helping the individuals develop ef6 fective teaching skills and strategies; 

7 ‘‘(ii) professional development; and 

8 ‘‘(iii) the disciplines of teaching and 

9 learning to ensure that prospective teach10 ers have an understanding of research11 based learning practices and possess skills 

12 related to the learning process. 

13 ‘‘(4) TEACHER SUPPORT.—Carrying out pro14 grams that include support during the initial teach15 ing experience. 

16 ‘‘(5) RECRUITING AND HIRING TEACHERS.—

17 ‘‘(A) EFFECTIVE MECHANISMS.—Devel18 oping and implementing effective mechanisms 

19 to ensure that local educational agencies and 

20 schools are able to effectively recruit highly 

21 qualified teachers. 

22 ‘‘(B) PROGRAMS.—Establishing programs 

23 that—

24 ‘‘(i) train and hire regular, special 

25 education, and bilingual education teachers 
67

•S 1793 IS 

1 (which may include hiring special edu2 cation teachers to team-teach in classrooms 

3 that contain both children with disabilities 

4 and nondisabled children); 

5 ‘‘(ii) train and hire highly qualified 

6 teachers of special needs children and lim7 ited English proficient students, as well as 

8 teaching specialists in core academic sub9 jects who will provide individualized in10 struction to students; 

11 ‘‘(iii) recruit qualified professionals 

12 from other fields, including highly qualified 

13 paraprofessionals (as defined in section 

14 2102 of the Elementary and Secondary 

15 Education Act of 1965), and provide such 

16 professionals with alternative routes to 

17 teacher certification, including developing 

18 and implementing hiring policies that en19 sure comprehensive recruitment efforts as 

20 a way to expand the applicant pool, such 

21 as through identifying teachers certified 

22 through alternative routes, and using a 

23 system of intensive screening designed to 

24 hire the most qualified applicants; and 
68

•S 1793 IS 

1 ‘‘(iv) provide increased opportunities 

2 for minorities, individuals with disabilities, 

3 and other individuals underrepresented in 

4 the teaching profession. 

5 ‘‘(C) REDUCTION IN CLASS SIZE.—Recruit6 ing and hiring highly qualified teachers to re7 duce class size, particularly in the early grades. 

8 ‘‘(6) SOCIAL PROMOTION.—Development and 

9 implementation of efforts to address the problem of 

10 social promotion and to prepare teachers to effec11 tively address the issues raised by ending the prac12 tice of social promotion. 

13 ‘‘(7) SPECIAL CERTIFICATION FOR PROSPEC14 TIVE AP TEACHERS.—Developing and implementing 

15 teacher preparation programs that provide special 

16 certification in advanced placement (AP)-level or 

17 international baccalaureate (IB)-level content and 

18 pedagogy, including undergraduate specializations in 

19 in-depth study of subject-specific content and prac20 tical pedagogical experience through student teach21 ing, and master degree level programs that lead to 

22 a master’s degree in AP-level or IB-level content. 

23 ‘‘(8) FINANCIAL INCENTIVES.—Providing finan24 cial incentives for teachers to teach in high need 
69

•S 1793 IS 

1 schools in which there exists a shortage of highly 

2 qualified teachers. 

3 ‘‘SEC. 204. PARTNERSHIP GRANTS. 

4 ‘‘(a) GRANTS.—The Secretary or State, as appro5 priate, shall use funds made available under section 202 

6 to award grants under this section, on a competitive basis, 

7 to eligible partnerships to enable the eligible partnerships 

8 to carry out the activities described in subsections (d) and 

9 (e). 

10 ‘‘(b) DEFINITIONS.—

11 ‘‘(1) ELIGIBLE PARTNERSHIPS.—In this part, 

12 the term ‘eligible partnerships’ means an entity 

13 that—

14 ‘‘(A) shall include—

15 ‘‘(i) a partner institution; 

16 ‘‘(ii) a school of arts and sciences; and 

17 ‘‘(iii) a high need local educational 

18 agency; and 

19 ‘‘(B) may include a Governor, State edu20 cational agency, the State board of education, 

21 the State agency for higher education, an insti22 tution of higher education not described in sub23 paragraph (A), a community college, a public 

24 charter school, a public or private elementary 

25 school or secondary school, a public or private
70

•S 1793 IS 

1 nonprofit educational organization, a business, 

2 a teacher organization, or a prekindergarten 

3 program. 

4 ‘‘(2) PARTNER INSTITUTION.—In this section, 

5 the term ‘partner institution’ means a private inde6 pendent or State-supported public institution of 

7 higher education, the teacher training program of 

8 which demonstrates that—

9 ‘‘(A) graduates from the teacher training 

10 program exhibit strong performance on State11 determined qualifying assessments for new 

12 teachers through—

13 ‘‘(i) demonstrating that 80 percent or 

14 more of the graduates of the program who 

15 intend to enter the field of teaching have 

16 passed all of the applicable State qualifica17 tion assessments for new teachers, which 

18 shall include an assessment of each pro19 spective teacher’s subject matter knowledge 

20 in the content area or areas in which the 

21 teacher intends to teach; or 

22 ‘‘(ii) being ranked among the highest23 performing teacher preparation programs 

24 in the State as determined by the State—
71

•S 1793 IS 

1 ‘‘(I) using criteria consistent with 

2 the requirements for the State report 

3 card under section 207(b); and 

4 ‘‘(II) using the State report card 

5 on teacher preparation required under 

6 section 207(b), after the first publica7 tion of such report card and for every 

8 year thereafter; or 

9 ‘‘(B) the teacher training program requires 

10 all the students of the program to participate in 

11 intensive clinical experience, to meet high aca12 demic standards, and—

13 ‘‘(i) in the case of secondary school 

14 candidates, to successfully complete an 

15 academic major in the subject area in 

16 which the candidate intends to teach or to 

17 demonstrate competence through a high 

18 level of performance in relevant content 

19 areas; and 

20 ‘‘(ii) in the case of elementary school 

21 candidates, to successfully complete an 

22 academic major in the arts and sciences or 

23 to demonstrate competence through a high 

24 level of performance in core academic sub25 ject areas. 
72

•S 1793 IS 

1 ‘‘(c) APPLICATION.—Each eligible partnership desir2 ing a grant under this section shall submit an application 

3 to the Secretary or State, as appropriate, at such time, 

4 in such manner, and accompanied by such information as 

5 the Secretary or State, as appropriate, may require. Each 

6 such application shall—

7 ‘‘(1) contain a needs assessment of all the part8 ners with respect to teaching and learning and a de9 scription of how the partnership will coordinate with 

10 other teacher training or professional development 

11 programs, and how the activities of the partnership 

12 will be consistent with State, local, and other edu13 cation reform activities that promote student 

14 achievement and parent involvement; 

15 ‘‘(2) contain a resource assessment that de16 scribes the resources available to the partnership, 

17 the intended use of the grant funds, including a de18 scription of how the grant funds will be fairly dis19 tributed in accordance with subsection (f), and the 

20 commitment of the resources of the partnership to 

21 the activities assisted under this part, including fi22 nancial support, faculty participation, time commit23 ments, and continuation of the activities when the 

24 grant ends; and 

25 ‘‘(3) contain a description of—
73

•S 1793 IS 

1 ‘‘(A) how the partnership will meet the 

2 purposes of this part; 

3 ‘‘(B) how the partnership will carry out 

4 the activities required under subsection (d) and 

5 any permissible activities under subsection (e); 

6 and 

7 ‘‘(C) the partnership’s evaluation plan pur8 suant to section 206(b). 

9 ‘‘(d) REQUIRED USES OF FUNDS.—An eligible part10 nership that receives a grant under this section shall use 

11 the grant funds to carry out the following activities: 

12 ‘‘(1) REFORMS.—Implementing reforms within 

13 teacher preparation programs to hold the programs 

14 accountable for preparing teachers who are highly 

15 competent in the academic content areas in which 

16 the teachers plan to teach, and for promoting strong 

17 teaching skills, including working with a school of 

18 arts and sciences and integrating reliable research19 based teaching methods into the curriculum, which 

20 curriculum shall include programs designed to suc21 cessfully integrate technology into teaching and 

22 learning. 

23 ‘‘(2) CLINICAL EXPERIENCE AND INTER24 ACTION.—Providing sustained and high-quality 

25 preservice clinical experience including the men-
74

•S 1793 IS 

1 toring of prospective teachers by veteran teachers, 

2 and substantially increasing interaction between fac3 ulty at institutions of higher education and new and 

4 experienced teachers, principals, and other adminis5 trators at elementary schools or secondary schools, 

6 and providing support, including preparation time, 

7 for such interaction. 

8 ‘‘(3) PROFESSIONAL DEVELOPMENT.—Creating 

9 opportunities for enhanced and ongoing professional 

10 development that improves the academic content 

11 knowledge of teachers in the subject areas in which 

12 the teachers are certified to teach or in which the 

13 teachers are working toward certification to teach, 

14 and that promotes strong teaching skills. 

15 ‘‘(4) ENSURING ADEQUATE PREPARATION TO

16 MEET HIGH STANDARDS.—Developing and imple17 menting accountability measures for preservice—

18 ‘‘(A) training in reading; 

19 ‘‘(B) training in addressing the needs of 

20 children with disabilities and limited English 

21 proficient individuals; 

22 ‘‘(C) training in data analysis and how to 

23 use student achievement data to improve in24 struction; and
75

•S 1793 IS 

1 ‘‘(D) optional training in teaching ad2 vanced placement or international baccalaureate 

3 courses. 

4 ‘‘(5) TEACHER PREPARATION AND PARENTAL

5 INVOLVEMENT.—Preparing teachers with the knowl6 edge and skills to enable such teachers to—

7 ‘‘(A) provide instruction to diverse student 

8 populations, including individuals with disabil9 ities and limited English proficient individuals; 

10 and 

11 ‘‘(B) work with and involve parents in 

12 their children’s education and in the teacher 

13 preparation program reform process. 

14 ‘‘(6) TEACHER PREPARATION ENHANCEMENT

15 INTERNSHIP.—Developing a 1-year paid internship 

16 program for students who have completed a 4-year 

17 teacher education program to enable such students 

18 to develop the skills and experience necessary for 

19 success in teaching, including providing intensive 

20 clinical training and combining in-service instruction 

21 in teacher methods and assessments with classroom 

22 observations, experiences, and practices. Such in23 terns would have a reduced teaching load and a 

24 mentor for assistance in the classroom. 
76

•S 1793 IS 

1 ‘‘(e) ALLOWABLE USES OF FUNDS.—An eligible 

2 partnership that receives a grant under this section may 

3 use such funds to carry out any of the following activities: 

4 ‘‘(1) DISSEMINATION AND COORDINATION.—

5 Broadly disseminating information on effective prac6 tices used by the partnership, and coordinating with 

7 the activities of the Governor, State board of edu8 cation, State higher education agency, and State 

9 educational agency, as appropriate. 

10 ‘‘(2) MANAGERIAL AND LEADERSHIP SKILLS.—

11 Developing and implementing proven mechanisms to 

12 provide principals and superintendents with effective 

13 managerial and leadership skills that result in in14 creased student achievement. 

15 ‘‘(3) SCHOLARSHIPS.—

16 ‘‘(A) IN GENERAL.—Awarding scholarships 

17 to help students pay the costs of tuition, room, 

18 board, and other expenses of completing a 

19 teacher preparation program. 

20 ‘‘(B) SUPPORT SERVICES.—Providing sup21 port services, if needed, to enable scholarship 

22 recipients to complete postsecondary education 

23 programs. 

24 ‘‘(C) ASSISTANCE TO BECOME HIGHLY

25 QUALIFIED TEACHERS.—Providing teachers 
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1 who are not highly qualified with the oppor2 tunity to take coursework or credentialing 

3 courses in order to become highly qualified 

4 teachers. 

5 ‘‘(D) FOLLOWUP SERVICES.—Providing 

6 followup services to former scholarship recipi7 ents during the recipients’ first 3 years of 

8 teaching. 

9 ‘‘(E) SERVICE REQUIREMENT.—The Sec10 retary or State, as appropriate, shall establish 

11 such requirements as the Secretary or State, as 

12 appropriate, finds necessary to ensure that re13 cipients of scholarships under this paragraph 

14 who complete teacher education programs sub15 sequently teach in a high need local educational 

16 agency, for a period of time equivalent to the 

17 period for which the recipients receive scholar18 ship assistance, or repay the amount of the 

19 scholarship. The Secretary or State, as appro20 priate, shall use any such repayments to carry 

21 out additional activities under this section. 

22 ‘‘(4) FINANCIAL INCENTIVES.—Providing finan23 cial incentives for teachers to teach in high need 

24 schools in which there exists a shortage of highly 

25 qualified teachers. 
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1 ‘‘(5) RECRUITING AND HIRING TEACHERS.—

2 ‘‘(A) IN GENERAL.—Establishing programs 

3 that—

4 ‘‘(i) train and hire regular and special 

5 education teachers (which may include hir6 ing special education teachers to team7 teach in classrooms that contain both chil8 dren with disabilities and nondisabled chil9 dren); 

10 ‘‘(ii) train and hire highly qualified 

11 teachers of special needs children, as well 

12 as teaching specialists in core academic 

13 subjects who will provide increased individ14 ualized instruction to students; 

15 ‘‘(iii) recruit qualified professionals 

16 from other fields, including highly qualified 

17 paraprofessionals (as defined in section 

18 2102 of the Elementary and Secondary 

19 Education Act of 1965), and provide such 

20 professionals with alternative routes to 

21 teacher certification, including developing 

22 and implementing hiring policies that en23 sure comprehensive recruitment efforts as 

24 a way to expand the applicant pool, such 

25 as through identifying teachers certified 
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1 through alternative routes, and using a 

2 system of intensive screening designed to 

3 hire the most qualified applicants; and 

4 ‘‘(iv) provide increased opportunities 

5 for minorities, individuals with disabilities, 

6 and other individuals underrepresented in 

7 the teaching profession. 

8 ‘‘(B) REDUCTION IN CLASS SIZE.—Re9 cruiting and hiring highly qualified teachers to 

10 reduce class size, particularly in the early 

11 grades. 

12 ‘‘(6) FACULTY OPPORTUNITY PROGRAMS.—

13 Awarding competitive grants to institutions of high14 er education to enable such institutions to fill edu15 cation faculty vacancies in special education, early 

16 childhood education, and bilingual education, to cre17 ate new faculty positions that are targeted toward 

18 training highly qualified special education, early 

19 childhood education, and bilingual education teach20 ers, and to develop doctoral programs in special edu21 cation, early childhood education, and bilingual edu22 cation that will produce new faculty at institutions 

23 of higher education in such subject areas. Funds 

24 from such grants may be used to develop and carry 

25 out recruitment strategies, subsidize moving ex-
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•S 1793 IS 

1 penses, provide bonuses, provide fully subsidized sal2 aries for not more than 2 years per new faculty 

3 member, and provide partially subsidized salaries for 

4 not more than an additional 3 years per new faculty 

5 member. If an institution of higher education re6 ceives a grant under this paragraph and uses the 

7 grant funds to provide faculty salaries, such institu8 tion shall continue to fully fund such faculty posi9 tions for not less than 5 years after the end of Fed10 eral funding under the grant. 

11 ‘‘(f ) SPECIAL RULE.—No individual member of an 

12 eligible partnership shall retain more than 50 percent of 

13 the funds made available to the partnership under this sec14 tion. 

15 ‘‘(g) CONSTRUCTION.—Nothing in this section shall 

16 be construed to prohibit an eligible partnership from using 

17 grant funds to coordinate with the activities of more than 

18 1 Governor, State board of education, State educational 

19 agency, local educational agency, or State agency for high20 er education. 

21 ‘‘SEC. 205. ADMINISTRATIVE PROVISIONS. 

22 ‘‘(a) DURATION; INCREASED ACCOUNTABILITY; PAY23 MENTS.—

24 ‘‘(1) DURATION.—
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1 ‘‘(A) ELIGIBLE STATES AND ELIGIBLE AP2 PLICANTS.—Grants awarded to eligible States 

3 and eligible applicants under this part shall be 

4 awarded for a period not to exceed 3 years. 

5 ‘‘(B) ELIGIBLE PARTNERSHIPS.—Grants 

6 awarded to eligible partnerships under this part 

7 shall be awarded for a period of 5 years. 

8 ‘‘(2) INCREASED ACCOUNTABILITY.—An eligible 

9 State, eligible applicant, or eligible partnership that 

10 receives more than 1 grant under this part has an 

11 increased accountability to disseminate information 

12 gained from such grants to States and local edu13 cational agencies. 

14 ‘‘(3) PAYMENTS.—The Secretary shall make 

15 annual payments of grant funds awarded under this 

16 part. 

17 ‘‘(b) PEER REVIEW.—

18 ‘‘(1) PANEL.—The Secretary shall provide the 

19 applications submitted under this part to a peer re20 view panel for evaluation. With respect to each ap21 plication, the peer review panel shall initially rec22 ommend the application for funding or for dis23 approval. 
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1 ‘‘(2) PRIORITY.—In recommending applications 

2 to the Secretary for funding under this part, the 

3 panel shall—

4 ‘‘(A) with respect to grants under section 

5 203, give priority to eligible States serving 

6 States that—

7 ‘‘(i) have initiatives to reform State 

8 teacher certification requirements that are 

9 designed to ensure that current and future 

10 teachers possess the necessary teaching 

11 skills and academic content knowledge in 

12 the subject areas in which the teachers are 

13 certified or licensed to teach; 

14 ‘‘(ii) include innovative reforms to 

15 hold institutions of higher education with 

16 teacher preparation programs accountable 

17 for preparing teachers who are highly com18 petent in the academic content area in 

19 which the teachers plan to teach and have 

20 strong teaching skills; or 

21 ‘‘(iii) involve the development of inno22 vative efforts aimed at reducing the short23 age of highly qualified teachers in high 

24 poverty urban and rural areas, and in sub25 ject areas of high need (including bilingual 
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1 education, special education, mathematics, 

2 science, early childhood education, and vo3 cational education); and 

4 ‘‘(B) with respect to grants under section 

5 204—

6 ‘‘(i) give priority to applications from 

7 eligible partnerships that involve busi8 nesses; and 

9 ‘‘(ii) take into consideration—

10 ‘‘(I) providing an equitable geo11 graphic distribution of the grants 

12 throughout the United States; and 

13 ‘‘(II) the potential of the pro14 posed activities for creating improve15 ment and positive change. 

16 ‘‘(3) SECRETARIAL SELECTION.—The Secretary 

17 shall determine, based on the peer review process, 

18 which application shall receive funding and the 

19 amounts of the grants. In determining grant 

20 amounts, the Secretary shall take into account the 

21 total amount of funds available for all grants under 

22 this part and the types of activities proposed to be 

23 carried out. 

24 ‘‘(c) MATCHING REQUIREMENTS.—
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1 ‘‘(1) STATE GRANTS.—Each eligible State re2 ceiving a grant under section 203 shall provide, from 

3 non-Federal sources, an amount equal to 50 percent 

4 of the amount of the grant (in cash or in kind) to 

5 carry out the activities supported by the grant. 

6 ‘‘(2) PARTNERSHIP GRANTS.—Each eligible 

7 partnership receiving a grant under section 204 

8 shall provide, from non-Federal sources (in cash or 

9 in kind), an amount equal to 25 percent of the grant 

10 for the first year of the grant, 35 percent of the 

11 grant for the second year of the grant, and 50 per12 cent of the grant for each succeeding year of the 

13 grant. 

14 ‘‘(d) LIMITATION ON ADMINISTRATIVE EXPENSES.—

15 An eligible State or eligible partnership that receives a 

16 grant under this part may not use more than 2 percent 

17 of the grant funds for purposes of administering the grant. 

18 ‘‘SEC. 206. ACCOUNTABILITY AND EVALUATION. 

19 ‘‘(a) STATE GRANT ACCOUNTABILITY REPORT.—An 

20 eligible State that receives a grant under section 203 shall 

21 submit an annual accountability report to the Secretary. 

22 Such report shall include a description of the degree to 

23 which the eligible State, in using funds provided under 

24 such section, has made substantial progress in meeting the 

25 following goals: 
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1 ‘‘(1) STUDENT ACHIEVEMENT.—Increasing stu2 dent achievement for all students as defined by the 

3 eligible State. 

4 ‘‘(2) RAISING STANDARDS.—Raising the State 

5 academic standards required to enter the teaching 

6 profession, including, where appropriate, through the 

7 use of incentives to incorporate the requirement of 

8 an academic major in the subject, or related dis9 cipline, in which the teacher plans to teach. 

10 ‘‘(3) INITIAL CERTIFICATION OR LICENSURE.—

11 Increasing success in the pass rate for initial State 

12 teacher certification or licensure, and increasing the 

13 numbers of highly qualified individuals being cer14 tified or licensed as teachers, including through al15 ternative routes. 

16 ‘‘(4) HIGHLY QUALIFIED TEACHERS.—Ensur17 ing that all teachers teaching in core academic sub18 jects within the State are highly qualified not later 

19 than the end of the 2005–2006 school year pursuant 

20 to section 1119(a)(2) of the Elementary and Sec21 ondary Education Act of 1965 (20 U.S.C. 

22 6319(a)(2)). 

23 ‘‘(5) DECREASING TEACHER SHORTAGES.—De24 creasing shortages of qualified teachers in poor 

25 urban and rural areas.
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•S 1793 IS 

1 ‘‘(6) INCREASING OPPORTUNITIES FOR PROFES2 SIONAL DEVELOPMENT.—Increasing opportunities 

3 for enhanced and ongoing professional development 

4 that improves the academic content knowledge of 

5 teachers in the subject areas in which the teachers 

6 are certified or licensed to teach or in which the 

7 teachers are working toward certification or licen8 sure to teach, and that promotes strong teaching 

9 skills. 

10 ‘‘(7) TECHNOLOGY INTEGRATION.—Increasing 

11 the number of teachers prepared to integrate tech12 nology in the classroom. 

13 ‘‘(b) ELIGIBLE PARTNERSHIP EVALUATION.—Each 

14 eligible partnership receiving a grant under section 204 

15 shall establish and include in the application submitted 

16 under section 204(c), an evaluation plan that includes 

17 strong performance objectives. The plan shall include ob18 jectives and measures for—

19 ‘‘(1) increased student achievement for all stu20 dents as measured by the partnership; 

21 ‘‘(2) increased teacher retention in the first 3 

22 years of a teacher’s career; 

23 ‘‘(3) increased success in the pass rate for ini24 tial State certification or licensure of teachers; 
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•S 1793 IS 

1 ‘‘(4) increased percentage of secondary school 

2 classes in core academic subject areas taught by 

3 highly qualified teachers; 

4 ‘‘(5) increasing the number of teachers trained 

5 in technology; and 

6 ‘‘(6) increasing the number of teachers pre7 pared to work effectively with parents. 

8 ‘‘(c) REVOCATION OF GRANT.—

9 ‘‘(1) REPORT.—Each eligible State or eligible 

10 partnership receiving a grant under this part shall 

11 report annually on the progress of the eligible State 

12 or eligible partnership toward meeting the purposes 

13 of this part and the goals, objectives, and measures 

14 described in subsections (a) and (b). 

15 ‘‘(2) REVOCATION.—

16 ‘‘(A) ELIGIBLE STATES AND ELIGIBLE AP17 PLICANTS.—If the Secretary determines that an 

18 eligible State or eligible applicant is not making 

19 substantial progress in meeting the purposes, 

20 goals, objectives, and measures, as appropriate, 

21 by the end of the second year of a grant under 

22 this part, then the grant payment shall not be 

23 made for the third year of the grant. 

24 ‘‘(B) ELIGIBLE PARTNERSHIPS.—If the 

25 Secretary determines that an eligible partner-
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•S 1793 IS 

1 ship is not making substantial progress in 

2 meeting the purposes, goals, objectives, and 

3 measures, as appropriate, by the end of the 

4 third year of a grant under this part, then the 

5 grant payments shall not be made for any suc6 ceeding year of the grant. 

7 ‘‘(d) EVALUATION AND DISSEMINATION.—The Sec8 retary shall evaluate the activities funded under this part 

9 and report the Secretary’s findings regarding the activities 

10 to the Committee on Health, Education, Labor, and Pen11 sions of the Senate and the Committee on Education and 

12 the Workforce of the House of Representatives. The Sec13 retary shall broadly disseminate successful practices devel14 oped by eligible States and eligible partnerships under this 

15 part, and shall broadly disseminate information regarding 

16 such practices that were found to be ineffective. 

17 ‘‘SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PRE18 PARE TEACHERS. 

19 ‘‘(a) DEVELOPMENT OF DEFINITIONS AND REPORT20 ING METHODS; HIGH-QUALITY TEACHER PREPARATION

21 PROGRAM.—

22 ‘‘(1) IN GENERAL.—Within 9 months of the 

23 date of enactment of the Higher Education Amend24 ments of 1998, the Commissioner of the National 

25 Center for Education Statistics, in consultation with 
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•S 1793 IS 

1 States and institutions of higher education, shall de2 velop key definitions for terms, and uniform report3 ing methods (including the key definitions for the 

4 consistent reporting of pass rates and program 

5 completers), related to the performance of elemen6 tary school and secondary school teacher preparation 

7 programs. 

8 ‘‘(2) HIGH-QUALITY TEACHER PREPARATION

9 PROGRAM.—Each applicant for a grant under this 

10 part shall provide assurances in such applicant’s ap11 plication that the applicant will meet the following 

12 criteria: 

13 ‘‘(A) Provide each teacher with each of the 

14 following skills and supports: 

15 ‘‘(i) A deep knowledge of the subjects 

16 such teacher teaches. 

17 ‘‘(ii) A firm understanding of how 

18 students learn. 

19 ‘‘(iii) Teaching skills necessary to help 

20 all students achieve high standards, includ21 ing children with disabilities and limited 

22 English proficient students. 

23 ‘‘(iv) How to create a positive learning 

24 environment. 
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1 ‘‘(v) The ability to integrate chal2 lenging State academic content standards 

3 and challenging student academic achieve4 ment standards, and accountability into 

5 classroom teaching. 

6 ‘‘(vi) The ability to use a variety of 

7 assessment strategies to diagnose and re8 spond to individual learning needs. 

9 ‘‘(vii) The ability to integrate modern 

10 technology into curricula to support stu11 dent learning. 

12 ‘‘(viii) Classroom management skills. 

13 ‘‘(ix) Opportunities to collaborate with 

14 the teacher’s colleagues, with parents, com15 munity members, and other educators. 

16 ‘‘(x) The ability to work in partner17 ship with parents and involve parents in 

18 their children’s education. 

19 ‘‘(xi) How to reflect on practices in 

20 order to improve teaching and student 

21 learning. 

22 ‘‘(B) Ensure that each preservice teacher 

23 has the necessary skills to succeed in the class24 room, including providing—
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1 ‘‘(i) some training in reading, address2 ing the needs of children with disabilities 

3 and limited English proficient students, 

4 data analysis, and how to use student 

5 achievement data to improve instruction; 

6 and 

7 ‘‘(ii) optional training in teaching ad8 vanced placement courses. 

9 ‘‘(b) STATE REPORT CARD ON THE QUALITY OF

10 TEACHER PREPARATION.—Each State that receives funds 

11 under this Act shall provide to the Secretary, within 2 

12 years of the date of enactment of the Higher Education 

13 Amendments of 1998, and annually thereafter, in a uni14 form and comprehensible manner that conforms with the 

15 definitions and methods established in subsection (a), a 

16 State report card on the quality of teacher preparation 

17 in the State, which shall include at least the following: 

18 ‘‘(1) A description of the teacher certification 

19 and licensure assessments, and any other certifi20 cation and licensure requirements, used by the 

21 State. 

22 ‘‘(2) The standards and criteria that prospec23 tive teachers must meet in order to attain initial 

24 teacher certification or licensure and to be certified 
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1 or licensed to teach particular subjects or in par2 ticular grades within the State. 

3 ‘‘(3) A description of the extent to which the 

4 assessments and requirements described in para5 graph (1) are aligned with the State’s standards and 

6 assessments for students. 

7 ‘‘(4) The percentage of teaching candidates who 

8 passed each of the assessments used by the State for 

9 teacher certification and licensure, and the passing 

10 score on each assessment that determines whether a 

11 candidate has passed that assessment. 

12 ‘‘(5) The percentage of teaching candidates who 

13 passed each of the assessments used by the State for 

14 teacher certification and licensure, disaggregated 

15 and ranked, by the teacher preparation program in 

16 that State from which the teacher candidate received 

17 the candidate’s most recent degree, which shall be 

18 made available widely and publicly. 

19 ‘‘(6) Information on the extent to which teach20 ers in the State are given waivers of State certifi21 cation or licensure requirements, including the pro22 portion of such teachers distributed across high- and 

23 low-poverty school districts and across subject areas. 

24 ‘‘(7) A description of each State’s alternative 

25 routes to teacher certification, if any, and the per-
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•S 1793 IS 

1 centage of teachers certified through alternative cer2 tification routes who pass State teacher certification 

3 or licensure assessments. 

4 ‘‘(8) For each State, a description of proposed 

5 criteria for assessing the performance of teacher 

6 preparation programs within institutions of higher 

7 education in the State, including indicators of teach8 er candidate knowledge and skills. 

9 ‘‘(9) Information on the extent to which teach10 ers or prospective teachers in each State are re11 quired to take examinations or other assessments of 

12 their subject matter knowledge in the area or areas 

13 in which the teachers provide instruction, the stand14 ards established for passing any such assessments, 

15 and the extent to which teachers or prospective 

16 teachers are required to receive a passing score on 

17 such assessments in order to teach in specific sub18 ject areas or grade levels. 

19 ‘‘(c) INITIAL REPORT.—

20 ‘‘(1) IN GENERAL.—Each State that receives 

21 funds under this Act, not later than 6 months after 

22 the date of enactment of the College Quality, Afford23 ability, and Diversity Improvement Act of 2003 and 

24 in a uniform and comprehensible manner, shall sub25 mit to the Secretary the information described in 
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•S 1793 IS 

1 paragraphs (1), (5), and (6) of subsection (b). Such 

2 information shall be compiled by the Secretary and 

3 submitted to the Committee on Health, Education, 

4 Labor, and Pensions of the Senate and the Com5 mittee on Education and the Workforce of the 

6 House of Representatives not later than 9 months 

7 after the date of enactment of the College Quality, 

8 Affordability, and Diversity Improvement Act of 

9 2003. 

10 ‘‘(2) CONSTRUCTION.—Nothing in this sub11 section shall be construed to require a State to gath12 er information that is not in the possession of the 

13 State or the teacher preparation programs in the 

14 State, or readily available to the State or teacher 

15 preparation programs. 

16 ‘‘(d) REPORT OF THE SECRETARY ON THE QUALITY

17 OF TEACHER PREPARATION.—

18 ‘‘(1) REPORT CARD.—The Secretary shall pro19 vide to Congress, and publish and make widely avail20 able, a report card on teacher qualifications and 

21 preparation in the United States, including all the 

22 information reported in paragraphs (1) through (9) 

23 of subsection (b). Such report shall identify States 

24 for which eligible States and eligible partnerships re25 ceived a grant under this part. Such report shall be 
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•S 1793 IS 

1 so provided, published and made available not later 

2 than 2 years 6 months after the date of enactment 

3 of the Higher Education Amendments of 1998 and 

4 annually thereafter. 

5 ‘‘(2) REPORT TO CONGRESS.—The Secretary 

6 shall report to Congress—

7 ‘‘(A) a comparison of States’ efforts to im8 prove teaching quality; and 

9 ‘‘(B) regarding the national mean and me10 dian scores on any standardized test that is 

11 used in more than 1 State for teacher certifi12 cation or licensure. 

13 ‘‘(3) SPECIAL RULE.—In the case of teacher 

14 preparation programs with fewer than 10 graduates 

15 taking any single initial teacher certification or li16 censure assessment during an academic year, the 

17 Secretary shall collect and publish information with 

18 respect to an average pass rate on State certification 

19 or licensure assessments taken over a 3-year period. 

20 ‘‘(4) DATABASE.—The Secretary shall collect 

21 data and develop a national and public database that 

22 provides reports on States’ passage rates on certifi23 cation and licensure assessments, the placement 

24 rates for teacher preparation programs, the percent25 age of full-time faculty in institutions of higher edu-
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•S 1793 IS 

1 cation in each State who teach classes offered by a 

2 school of education, the tracking of graduates 3 

3 years after graduating from a teacher preparation 

4 program, and other relevant information, as appro5 priate. 

6 ‘‘(e) COORDINATION.—The Secretary, to the extent 

7 practicable, shall coordinate the information collected and 

8 published under this part among States for individuals 

9 who took State teacher certification or licensure assess10 ments in a State other than the State in which the indi11 vidual received the individual’s most recent degree. 

12 ‘‘(f ) INSTITUTIONAL REPORT CARDS ON THE QUAL13 ITY OF TEACHER PREPARATION.—

14 ‘‘(1) REPORT CARD.—Each institution of higher 

15 education that conducts a teacher preparation pro16 gram that enrolls students receiving Federal assist17 ance under this Act, not later than 18 months after 

18 the date of enactment of the Higher Education 

19 Amendments of 1998 and annually thereafter, shall 

20 report to the State and the general public, in a uni21 form and comprehensible manner that conforms with 

22 the definitions and methods established under sub23 section (a), the following information: 

24 ‘‘(A) PASS RATE.—(i) For the most recent 

25 year for which the information is available, the
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•S 1793 IS 

1 pass rate of the institution’s graduates on the 

2 teacher certification or licensure assessments of 

3 the State in which the institution is located, but 

4 only for those students who took those assess5 ments within 3 years of completing the pro6 gram. 

7 ‘‘(ii) A comparison of the program’s pass 

8 rate with the average pass rate for programs in 

9 the State. 

10 ‘‘(iii) In the case of teacher preparation 

11 programs with fewer than 10 graduates taking 

12 any single initial teacher certification or licen13 sure assessment during an academic year, the 

14 institution shall collect and publish information 

15 with respect to an average pass rate on State 

16 certification or licensure assessments taken over 

17 a 3-year period. 

18 ‘‘(B) PROGRAM INFORMATION.—The num19 ber of students in the program, the average 

20 number of hours of supervised practice teaching 

21 required for those in the program, and the fac22 ulty-student ratio in supervised practice teach23 ing. 

24 ‘‘(C) STATEMENT.—In States that approve 

25 or accredit teacher education programs, a state-
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•S 1793 IS 

1 ment of whether the institution’s program is so 

2 approved or accredited. 

3 ‘‘(D) DESIGNATION AS LOW-PER4 FORMING.—Whether the program has been des5 ignated as low-performing by the State under 

6 section 208(a). 

7 ‘‘(E) PERCENTAGE OF FACULTY IN

8 SCHOOL OF EDUCATION.—The percentage of 

9 full-time faculty at the institution of higher 

10 education who teach classes offered by the 

11 school of education. 

12 ‘‘(2) REQUIREMENT.—The information de13 scribed in paragraph (1) shall be reported through 

14 publications such as school catalogs and promotional 

15 materials sent to potential applicants, secondary 

16 school guidance counselors, and prospective employ17 ers of the institution’s program graduates. 

18 ‘‘(3) FINES.—In addition to the actions author19 ized in section 487(c), the Secretary may impose a 

20 fine not to exceed $25,000 on an institution of high21 er education for failure to provide the information 

22 described in this subsection in a timely or accurate 

23 manner. 

24 ‘‘(g) NATIONAL ACADEMY OF SCIENCES CORE CUR25 RICULUM STUDY.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall enter 

2 into a contract with the National Academy of 

3 Sciences to conduct a 2-year study to develop a sug4 gested core curriculum in pedagogy for schools of 

5 education for such schools’ teacher education pro6 gram that assists those within the education profes7 sion and prospective teachers to understand what 

8 prospective teachers need to know to become effec9 tive teachers. 

10 ‘‘(2) DOMAINS OF FOUNDATIONAL AND PEDA11 GOGICAL KNOWLEDGE.—The study under paragraph 

12 (1) shall include each of the following domains of 

13 foundational and pedagogical knowledge: 

14 ‘‘(A) Learning, which would include build15 ing on existing knowledge and experience 

16 shaped by social and cultural context in the 

17 community and in the classroom. 

18 ‘‘(B) Human development, which would in19 clude how children and adolescents think and 

20 behave, taking in account different ages, con21 texts, and learning styles. 

22 ‘‘(C) Assessment, which would include the 

23 introduction of standards-based reform. 

24 ‘‘(D) Teaching strategies, which would in25 clude providing all teachers with the tools need-
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•S 1793 IS 

1 ed to be successful in the classroom, especially 

2 with students who have specific learning disabil3 ities or needs such as language acquisition. 

4 ‘‘(E) Reading instruction, which would in5 clude taking in account different ages, contexts, 

6 and learning styles. 

7 ‘‘(3) BEST RESEARCH; SUGGESTED TRAIN8 ING.—The suggested core curriculum developed 

9 under paragraph (1) shall reflect the best research 

10 into how students learn and on the content-specific 

11 methods shown to be effective with students, includ12 ing examining how children learn. The suggested 

13 core curriculum shall include suggested training in 

14 working with diverse populations, assessments in the 

15 classroom, and classroom management. 

16 ‘‘(4) COLLABORATION.—

17 ‘‘(A) IN GENERAL.—In conducting the 

18 study under paragraph (1), the National Acad19 emy of Sciences shall collaborate with interested 

20 parties in developing the suggested core cur21 riculum. 

22 ‘‘(B) INTERESTED PARTIES.—In this para23 graph, the term ‘interested parties’ means—

24 ‘‘(i) college presidents; 
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•S 1793 IS 

1 ‘‘(ii) deans of teacher education pro2 grams; 

3 ‘‘(iii) teacher preparation faculty; 

4 ‘‘(iv) chief State school officers; 

5 ‘‘(v) school superintendents; 

6 ‘‘(vi) teacher organizations; 

7 ‘‘(vii) outstanding teachers; and 

8 ‘‘(viii) teacher preparation accrediting 

9 organizations. 

10 ‘‘SEC. 208. STATE FUNCTIONS. 

11 ‘‘(a) STATE ASSESSMENT.—In order to receive funds 

12 under this Act, a State, not later than 2 years after the 

13 date of enactment of the Higher Education Amendments 

14 of 1998, shall have in place a procedure to identify, and 

15 assist, through the provision of technical assistance, low16 performing programs of teacher preparation within insti17 tutions of higher education. Such State shall provide the 

18 Secretary an annual list of such low-performing institu19 tions that includes an identification of those institutions 

20 at risk of being placed on such list. Such levels of perform21 ance shall be determined solely by the State and may in22 clude criteria based upon information collected pursuant 

23 to this part. Such assessment shall be described in the 

24 report under section 207(b).
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1 ‘‘(b) TERMINATION OF ELIGIBILITY.—Any institu2 tion of higher education that offers a program of teacher 

3 preparation in which the State has withdrawn the State’s 

4 approval or terminated the State’s financial support due 

5 to the low performance of the institution’s teacher prepa6 ration program based upon the State assessment described 

7 in subsection (a)—

8 ‘‘(1) shall be ineligible for any funding for pro9 fessional development activities awarded by the De10 partment of Education; 

11 ‘‘(2) shall not be permitted to accept or enroll 

12 any student that receives aid under title IV of this 

13 Act in the institution’s teacher preparation program; 

14 and 

15 ‘‘(3) shall provide transitional support, includ16 ing remedial services if necessary, for students en17 rolled at the institution at the time of termination 

18 of financial support or withdrawal of approval. 

19 ‘‘(c) NEGOTIATED RULEMAKING.—If the Secretary 

20 develops any regulations implementing subsection (b)(2), 

21 the Secretary shall submit such proposed regulations to 

22 a negotiated rulemaking process, which shall include rep23 resentatives of States, institutions of higher education, 

24 and educational and student organizations. 
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1 ‘‘SEC. 209. GENERAL PROVISIONS. 

2 ‘‘(a) METHODS.—In complying with sections 207 and 

3 208, the Secretary shall ensure that States and institu4 tions of higher education use fair and equitable methods 

5 in reporting and that the reporting methods protect the 

6 privacy of individuals. 

7 ‘‘(b) SPECIAL RULE.—For each State in which there 

8 are no State certification or licensure assessments, or for 

9 States that do not set minimum performance levels on 

10 those assessments—

11 ‘‘(1) the Secretary shall, to the extent prac12 ticable, collect data comparable to the data required 

13 under this part from States, local educational agen14 cies, institutions of higher education, or other enti15 ties that administer such assessments to teachers or 

16 prospective teachers; and 

17 ‘‘(2) notwithstanding any other provision of this 

18 part, the Secretary shall use such data to carry out 

19 the requirements of this part related to assessments 

20 or pass rates. 

21 ‘‘(c) LIMITATIONS.—

22 ‘‘(1) FEDERAL CONTROL PROHIBITED.—Noth23 ing in this part shall be construed to permit, allow, 

24 encourage, or authorize any Federal control over any 

25 aspect of any private, religious, or home school, 

26 whether or not a home school is treated as a private 
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1 school or home school under State law. This section 

2 shall not be construed to prohibit private, religious, 

3 or home schools from participation in programs or 

4 services under this part. 

5 ‘‘(2) NO CHANGE IN STATE CONTROL ENCOUR6 AGED OR REQUIRED.—Nothing in this part shall be 

7 construed to encourage or require any change in a 

8 State’s treatment of any private, religious, or home 

9 school, whether or not a home school is treated as 

10 a private school or home school under State law. 

11 ‘‘(3) NATIONAL SYSTEM OF TEACHER CERTIFI12 CATION PROHIBITED.—Nothing in this part shall be 

13 construed to permit, allow, encourage, or authorize 

14 the Secretary to establish or support any national 

15 system of teacher certification. 

16 ‘‘SEC. 210. AUTHORIZATION OF APPROPRIATIONS. 

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

18 this part $300,000,000 for fiscal year 2004 and such sums 

19 as may be necessary for each of the 5 succeeding fiscal 

20 years. 
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1 ‘‘PART B—INNOVATIVE STRATEGIES TO RECRUIT, 

2 TRAIN, AND RETAIN HIGH QUALITY TEACH3 ERS AND PRINCIPALS 

4 ‘‘SEC. 215. INCENTIVES TO RECRUIT AND RETAIN HIGH 

5 QUALITY TEACHERS AND ADMINISTRATORS. 

6 ‘‘(a) MENTORING PROGRAM.—

7 ‘‘(1) AUTHORIZATION.—

8 ‘‘(A) IN GENERAL.—The Secretary shall 

9 award grants, on a competitive basis, to eligible 

10 partnerships to enable the eligible partnerships 

11 to develop mentoring programs that help train 

12 and retain new teachers and provide profes13 sional routes for experienced teachers. 

14 ‘‘(B) PRIORITY.—In awarding grants 

15 under this subsection, the Secretary shall give 

16 priority to eligible partnerships that consist of 

17 a high need local educational agency with—

18 ‘‘(i) high rates of teacher turnover; 

19 and 

20 ‘‘(ii) shortages of teachers in subject 

21 areas of high need (including bilingual edu22 cation, special education, mathematics, 

23 science, vocational education, and early 

24 childhood education) and teachers in rural 

25 areas. 
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•S 1793 IS 

1 ‘‘(2) ELIGIBLE PARTNERSHIP.—In this sub2 section, the term ‘eligible partnership’ means a part3 nership among an institution of higher education, a 

4 high need local educational agency, and a nonprofit 

5 entity (including teacher organizations) that has an 

6 established record of providing effective teacher 

7 training. 

8 ‘‘(3) APPLICATION.—An eligible partnership 

9 that desires a grant under this subsection shall sub10 mit an application to the Secretary at such time, in 

11 such manner, and containing such information as 

12 the Secretary may require. 

13 ‘‘(4) USE OF FUNDS.—

14 ‘‘(A) MANDATORY USES.—An eligible part15 nership that receives a grant under this sub16 section shall develop a mentoring program that 

17 is not less than 1 year in duration and does 

18 each of the following: 

19 ‘‘(i) Provides—

20 ‘‘(I) training for experienced 

21 teachers to become mentors; 

22 ‘‘(II) training from trained men23 tors to teach teachers in schools 

24 served by high need local educational 

25 agencies;
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•S 1793 IS 

1 ‘‘(III) stipends to mentors; and 

2 ‘‘(IV) release time or a reduced 

3 class load for mentors and the teach4 ers being mentored, or both. 

5 ‘‘(ii) Outlines specific criteria for who 

6 can serve as mentors, coaches, and team 

7 leaders. 

8 ‘‘(iii) Requires mentors to—

9 ‘‘(I) be fully licensed; 

10 ‘‘(II) be permanent (nonproba11 tionary) classroom teachers; 

12 ‘‘(III) have completed not less 

13 than 3 years of teaching; 

14 ‘‘(IV) demonstrate mastery of 

15 pedagogy and the subject matter such 

16 mentor teaches; 

17 ‘‘(V) have superior teaching and 

18 interpersonal skills; 

19 ‘‘(VI) have the ability to inte20 grate challenging State academic con21 tent standards and challenging stu22 dent academic achievement standards 

23 and accountability into classroom 

24 teaching; 
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1 ‘‘(VII) use a variety of assess2 ment strategies to respond to indi3 vidual learning needs; and 

4 ‘‘(VIII) reflect on their teaching 

5 practices in order to improve teaching 

6 and student learning. 

7 ‘‘(iv) Endeavors to match mentors 

8 and the teachers being mentored by geo9 graphic proximity or by the same grade 

10 level and subject matter area of teaching, 

11 or both. 

12 ‘‘(v) Ensures that teachers who have 

13 been mentored will work in schools served 

14 by high need local educational agencies for 

15 a specified period of time. 

16 ‘‘(vi) Provides a plan to evaluate the 

17 mentoring program. 

18 ‘‘(B) PERMISSIBLE USES.—An eligible 

19 partnership that receives a grant under this 

20 subsection may use the grant funds to provide 

21 academic credit toward an advanced degree for 

22 mentors and the teachers being mentored. 

23 ‘‘(5) DURATION OF GRANTS.—Grants awarded 

24 under this subsection shall be for 3 years in dura25 tion. 
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•S 1793 IS 

1 ‘‘(6) EVALUATION.—

2 ‘‘(A) IN GENERAL.—Not later than the 

3 last day of the grant award, an eligible partner4 ship that receives a grant under this subsection 

5 shall submit an accountability report to the 

6 Secretary. 

7 ‘‘(B) CONTENT.—The accountability re8 port under subparagraph (A) shall include, at a 

9 minimum—

10 ‘‘(i) teacher retention rates for teach11 ers participating in the mentoring program 

12 as compared with teachers in the high need 

13 local educational agency not participating 

14 in the mentoring program; 

15 ‘‘(ii) results of evaluations on mentor 

16 and teachers being mentored satisfaction 

17 with the mentoring program; and 

18 ‘‘(iii) results of the plan developed by 

19 the eligible partnership to evaluate the 

20 mentoring program. 

21 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

22 There are authorized to be appropriated to carry out 

23 this subsection $50,000,000 for fiscal year 2004 and 

24 such sums as may be necessary for each of the 5 

25 succeeding fiscal years. 
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•S 1793 IS 

1 ‘‘(b) HOUSING INCENTIVES PROGRAM.—

2 ‘‘(1) GRANT PROGRAM AUTHORIZED.—The Sec3 retary shall award grants, on a competitive basis, to 

4 eligible partnerships to enable the eligible partner5 ships to develop a housing incentive program that 

6 assists teachers who teach in schools served by high 

7 need local educational agencies to afford housing. 

8 ‘‘(2) ELIGIBLE PARTNERSHIP.—In this sub9 section: 

10 ‘‘(A) IN GENERAL.—The term ‘eligible 

11 partnership’ means a partnership between—

12 ‘‘(i)(I) a high need local educational 

13 agency; or 

14 ‘‘(II) a State educational agency; and 

15 ‘‘(ii) an institution of higher edu16 cation. 

17 ‘‘(B) OTHER ENTITIES.—The term ‘eligible 

18 partnership’ may include other public entities or 

19 private entities. 

20 ‘‘(3) APPLICATION.—An eligible partnership 

21 that desires a grant under this subsection shall sub22 mit an application to the Secretary at such time, in 

23 such manner, and containing such information as 

24 the Secretary may require. 
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1 ‘‘(4) USE OF FUNDS.—An eligible partnership 

2 that receives a grant under this subsection shall use 

3 the grant funds to develop a housing incentive pro4 gram that—

5 ‘‘(A) provides financial incentives to teach6 ers who teach in schools served by high need 

7 local educational agencies by providing for such 

8 teachers funds for—

9 ‘‘(i) a downpayment on a home; 

10 ‘‘(ii) closing costs associated with pur11 chasing a home; or 

12 ‘‘(iii) moving expenses; or 

13 ‘‘(B) develops a partnership with a lender 

14 to create a home loan program for teachers who 

15 teach in schools served by high need local edu16 cational agencies that provides home loans to 

17 such teachers that—

18 ‘‘(i) are insured by the eligible part19 nership; or 

20 ‘‘(ii) require minimal or no downpay21 ment. 

22 ‘‘(5) SERVICE REQUIREMENT.—A teacher that 

23 receives assistance under this subsection shall—
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•S 1793 IS 

1 ‘‘(A) teach in a school served by a high 

2 need local educational agency for not less than 

3 5 subsequent school years; or 

4 ‘‘(B) repay the amount of assistance. 

5 ‘‘(6) EVALUATION.—

6 ‘‘(A) IN GENERAL.—An eligible partner7 ship that receives a grant under this subsection 

8 shall develop an evaluation of the partnership’s 

9 housing incentive program that includes, at a 

10 minimum—

11 ‘‘(i) how many teachers received as12 sistance under the program and retention 

13 rates in schools served by high need local 

14 educational agencies for such teachers; 

15 ‘‘(ii) whether the program helped im16 prove teacher shortages; 

17 ‘‘(iii) a description of the specific in18 active model that was used to develop the 

19 housing incentive program; 

20 ‘‘(iv) if applicable, how partnerships 

21 with lenders worked; and 

22 ‘‘(v) successful practices. 

23 ‘‘(B) SUBMISSION OF EVALUATION.—Not 

24 later than the last day of the grant award, the 

25 eligible partnership shall submit to the Sec-
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•S 1793 IS 

1 retary the evaluation developed under subpara2 graph (A). 

3 ‘‘(7) TAX EXEMPTION.—The amount of any fi4 nancial assistance received by a teacher under a 

5 housing incentive program developed pursuant to 

6 this subsection shall not be considered income for 

7 purposes of the Internal Revenue Code of 1986. 

8 ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.—

9 There are authorized to be appropriated to carry out 

10 this subsection $50,000,000 for fiscal year 2004 and 

11 such sums as may be necessary for each of the 5 

12 succeeding fiscal years. 

13 ‘‘(c) COMMUNITY COLLEGE AS A PARTNER.—

14 ‘‘(1) GRANT PROGRAM AUTHORIZED.—The Sec15 retary shall award grants, on a competitive basis, to 

16 eligible partnerships to enable the eligible partner17 ships to strengthen teacher preparation programs. 

18 ‘‘(2) ELIGIBLE PARTNERSHIP.—In this sub19 section, the term ‘eligible partnership’ means a part20 nership between—

21 ‘‘(A) a community college; and 

22 ‘‘(B) a 4-year institution of higher edu23 cation that has a teacher preparation program. 

24 ‘‘(3) APPLICATION.—An eligible partnership 

25 that desires a grant under this subsection shall sub-
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•S 1793 IS 

1 mit an application to the Secretary at such time, in 

2 such manner, and containing such information as 

3 the Secretary may require. 

4 ‘‘(4) USE OF FUNDS.—

5 ‘‘(A) MANDATORY USES.—An eligible part6 nership that receives a grant under this sub7 section shall do both of the following: 

8 ‘‘(i) COMMUNITY COLLEGE ACTIVI9 TIES.—The community college of the eligi10 ble partnership shall develop and strength11 en the core curriculum centered on a lib12 eral arts education at such college that 

13 adequately prepares students to enter the 

14 teacher preparation program at the 4-year 

15 institution of higher education of the eligi16 ble partnership. 

17 ‘‘(ii) 4-YEAR INSTITUTION OF HIGHER

18 EDUCATION ACTIVITIES.—

19 ‘‘(I) IN GENERAL.—The 4-year 

20 institution of higher education of the 

21 eligible partnership shall provide in22 tensive support services for students 

23 that enter the teacher preparation 

24 program from the community college 

25 of the eligible partnership. 
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•S 1793 IS 

1 ‘‘(II) SUPPORT SERVICES.—The 

2 support services shall be offered prior 

3 to and during such student’s tenure 

4 at the 4-year institution of higher 

5 education and shall include mentoring, 

6 and academic and career support. 

7 ‘‘(III) POINT PERSON.—The 4-

8 year institution of higher education 

9 shall provide a point person within the 

10 teacher preparation program whose 

11 sole job is to provide support services 

12 to the students described in subclause 

13 (I). 

14 ‘‘(B) PERMISSIVE USES.—An eligible part15 nership that receives a grant under this sub16 section may use the grant funds to provide 

17 compensation to staff in the teacher prepara18 tion programs at the community college and 4-

19 year institution of higher education. 

20 ‘‘(5) DURATION OF GRANTS.—Grants awarded 

21 under this subsection shall be for 5 years in dura22 tion. 

23 ‘‘(6) EVALUATION.—

24 ‘‘(A) IN GENERAL.—An eligible partner25 ship that receives a grant under this subsection 
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•S 1793 IS 

1 shall develop an evaluation of the partnerships’s 

2 activities under this subsection that—

3 ‘‘(i) includes the number of student 

4 teachers served and the retention rate in 

5 the 4-year institution of higher education 

6 of such student teachers; 

7 ‘‘(ii) addresses the qualification of 

8 such student teachers when graduating 

9 from the 4-year institution of higher edu10 cation, including whether such student 

11 teachers found teaching positions and 

12 whether they passed State certification ex13 aminations; and 

14 ‘‘(iii) includes successful practices. 

15 ‘‘(B) SUBMISSION OF EVALUATION.—Not 

16 later than the last day of the grant award, the 

17 eligible partnership shall submit to the Sec18 retary the evaluation developed under subpara19 graph (A). 

20 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

21 There are authorized to be appropriated to carry out 

22 this subsection $25,000,000 for fiscal year 2004 and 

23 such sums as may be necessary for each of the 5 

24 succeeding fiscal years. 

25 ‘‘(d) PARAPROFESSIONALS TO TEACHERS.—
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•S 1793 IS 

1 ‘‘(1) GRANT PROGRAM AUTHORIZED.—The Sec2 retary shall award grants, on a competitive basis, to 

3 eligible partnerships to enable the eligible partner4 ships to develop a Paraprofessionals to Teachers 

5 Program (in this subsection referred to as the ‘Pro6 gram’) to assist paraprofessionals employed by high 

7 need local educational agencies to become teachers. 

8 ‘‘(2) ELIGIBLE PARTNERSHIP.—In this sub9 section, the term ‘eligible partnership’ means a part10 nership among an institution of higher education, a 

11 high need local educational agency, and other enti12 ties that may include businesses, community col13 leges, and teacher organizations. 

14 ‘‘(3) APPLICATION.—An eligible partnership 

15 that desires a grant under this subsection shall sub16 mit an application to the Secretary at such time, in 

17 such manner, and containing such information as 

18 the Secretary may require. 

19 ‘‘(4) USE OF FUNDS.—

20 ‘‘(A) IN GENERAL.—An eligible partner21 ship that receives a grant under this subsection 

22 shall develop a Program to assist paraprofes23 sionals employed by the high need local edu24 cational agency of the eligible partnership to be25 come teachers by—
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•S 1793 IS 

1 ‘‘(i) developing a teacher preparation 

2 program at the institution of higher edu3 cation of the eligible partnership for para4 professionals that allows for part-time 

5 study and flexible student teaching and 

6 coursework schedules; 

7 ‘‘(ii) ensuring that paraprofessionals 

8 enrolled in the teacher preparation pro9 gram under clause (i) retain such para10 professionals’ benefit packages with the 

11 high need local educational agency while 

12 enrolled in the teacher preparation pro13 gram; 

14 ‘‘(iii) providing support services for 

15 such paraprofessionals that include tutor16 ing to meet teacher preparation program 

17 requirements, child care, career counseling, 

18 and financial aid guidance; and 

19 ‘‘(iv) providing mentoring for such 

20 paraprofessionals during their first 3 years 

21 of teaching. 

22 ‘‘(B) PERMISSIBLE USE OF FUNDS.—An 

23 eligible partnership that receives a grant under 

24 this subsection may use the grant funds for—
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•S 1793 IS 

1 ‘‘(i) tuition expenses of paraprofes2 sionals in the teacher preparation program; 

3 ‘‘(ii) child care expenses of para4 professionals; 

5 ‘‘(iii) release time for paraprofes6 sionals; 

7 ‘‘(iv) compensation for mentors; 

8 ‘‘(v) support services for paraprofes9 sionals; 

10 ‘‘(vi) salaries of staff at the institution 

11 of higher education and the high need local 

12 educational agency of the eligible partner13 ship; and 

14 ‘‘(vii) stipends for paraprofessionals. 

15 ‘‘(5) ACTIVITIES OF THE HIGH NEED LOCAL

16 EDUCATIONAL AGENCY.—The high need local edu17 cational agency of the eligible partnership shall—

18 ‘‘(A) make efforts to recruit paraprofes19 sionals employed by such agency to participate 

20 in the Program; 

21 ‘‘(B) arrange for administrative leave for 

22 paraprofessionals employed by such agency who 

23 participate in the Program; and 

24 ‘‘(C) guarantee a provisional teaching posi25 tion to paraprofessionals employed by such 
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•S 1793 IS 

1 agency who participate in the Program upon 

2 completion of the Program. 

3 ‘‘(6) DURATION OF GRANTS.—Grants awarded 

4 under this subsection shall be for 3 years in dura5 tion. 

6 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

7 There are authorized to be appropriated to carry out 

8 this subsection $50,000,000 for fiscal year 2004 and 

9 such sums as may be necessary for each of the 5 

10 succeeding fiscal years. 

11 ‘‘(e) SCHOOL LEADERSHIP DEVELOPMENT PROGRAM

12 FOR PRINCIPALS, ASSISTANT PRINCIPALS, AND SUPER13 INTENDENTS.—

14 ‘‘(1) GRANT PROGRAM AUTHORIZED.—The Sec15 retary shall award grants, on a competitive basis, to 

16 eligible partnerships to enable the eligible partner17 ships to provide practical training to principals, as18 sistant principals, and school superintendents that 

19 focuses on developing and enhancing the skills nec20 essary to serve as instructional leaders of schools 

21 and school systems. 

22 ‘‘(2) ELIGIBLE PARTNERSHIP.—In this sub23 section, the term ‘eligible partnership’—

24 ‘‘(A) means a partnership between—
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•S 1793 IS 

1 ‘‘(i) an institution of higher education; 

2 and 

3 ‘‘(ii) 1 or more high need local edu4 cational agencies; and 

5 ‘‘(B) may include a school principal profes6 sional organization. 

7 ‘‘(3) APPLICATION.—An eligible partnership 

8 that desires a grant under this subsection shall sub9 mit an application to the Secretary at such time, in 

10 such manner, and containing such information as 

11 the Secretary may require. 

12 ‘‘(4) USE OF FUNDS.—

13 ‘‘(A) IN GENERAL.—An eligible partner14 ship that receives a grant under this subsection 

15 shall establish a certificate program for prin16 cipals, assistant principals, and school super17 intendents that is developed by education ex18 perts and practitioners and that provides train19 ing in—

20 ‘‘(i) diagnostic leadership skills assess21 ment; 

22 ‘‘(ii) the development of knowledge 

23 and skills that contribute to the effective 

24 practice of instructional leadership behav25 iors;
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•S 1793 IS 

1 ‘‘(iii) research methodology for edu2 cational leaders that includes under3 standing of systematic and empirical re4 search methods, application of rigorous 

5 data analyses, collections of reliable and 

6 valid data, knowledge of appropriate re7 search designs, and the importance of peer 

8 review and other external scrutiny, and its 

9 application to the practice of school leader10 ship; and 

11 ‘‘(iv) the development of knowledge 

12 and skills to develop and align curriculum, 

13 assessments, and instruction with stand14 ards, legislation, and regulations. 

15 ‘‘(B) PERMISSIBLE USE OF FUNDS.—An 

16 eligible partnership that receives a grant under 

17 this subsection may use the grant funds—

18 ‘‘(i) to provide training in developing 

19 and enhancing the skills necessary to effec20 tively run schools for individuals who are 

21 about to become principals, assistant prin22 cipals, or school superintendents; 

23 ‘‘(ii) for a pre-induction year intern24 ship or apprenticeship with a successful 

25 practitioner to help train individuals who 
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•S 1793 IS 

1 are about to become principals, assistant 

2 principals, or school superintendents, and, 

3 during an induction year, to support and 

4 develop the capacity of new principals, as5 sistant principals, and school superintend6 ents as instructional leaders; and 

7 ‘‘(iii) to provide mentoring and peer 

8 coaching services for principals, assistant 

9 principals, and school superintendents to 

10 enable exemplary principals, assistant prin11 cipals, and school superintendents to serve 

12 as mentors and role models. 

13 ‘‘(5) TECHNOLOGY.—In carrying out activities 

14 under this subsection, an eligible partnership shall 

15 use, to the extent practicable, technology as an out16 reach mechanism to expand opportunities for profes17 sional development and ongoing support services for 

18 principals, assistant principals, and school super19 intendents. 

20 ‘‘(6) REPORT.—An eligible partnership that re21 ceives a grant under this subsection shall submit to 

22 the Secretary an evaluation detailing the use of 

23 grant funds under this subsection and the progress 

24 in meeting the goals of the eligible partnership. 
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•S 1793 IS 

1 ‘‘(7) DURATION OF GRANTS.—Grants awarded 

2 under this subsection shall be for 3 years in dura3 tion. 

4 ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.—

5 There are authorized to be appropriated to carry out 

6 this subsection $25,000,000 for fiscal year 2004 and 

7 such sums as may be necessary for each of the 5 

8 succeeding fiscal years. 

9 ‘‘PART C—PREPARING TOMORROW’S TEACHERS 

10 TO USE TECHNOLOGY 

11 ‘‘SEC. 221. PURPOSE AND PROGRAM AUTHORITY. 

12 ‘‘(a) PURPOSE.—It is the purpose of this part to as13 sist consortia of public and private entities—

14 ‘‘(1) to carry out programs that prepare pro15 spective teachers to use advanced technology to pre16 pare all students to meet challenging State and local 

17 academic content and student academic achievement 

18 standards; and 

19 ‘‘(2) to improve the ability of institutions of 

20 higher education to carry out such programs. 

21 ‘‘(b) PROGRAM AUTHORITY.—

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

23 to award grants to eligible applicants, or enter into 

24 contracts or cooperative agreements with eligible ap25 plicants, on a competitive basis in order to pay for 
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•S 1793 IS 

1 the Federal share of the cost of projects to develop 

2 or redesign teacher preparation programs to enable 

3 prospective teachers to use advanced technology ef4 fectively in their classrooms. 

5 ‘‘(2) PERIOD OF AWARDS.—The Secretary may 

6 award grants, or enter into contracts or cooperative 

7 agreements, under this part for periods that are not 

8 more than 5 years in duration. 

9 ‘‘SEC. 222. ELIGIBILITY. 

10 ‘‘(a) ELIGIBLE APPLICANTS.—In order to receive a 

11 grant or enter into a contract or cooperative agreement 

12 under this part, an applicant shall be a consortium that 

13 includes the following: 

14 ‘‘(1) At least one institution of higher education 

15 that awards baccalaureate degrees and prepares 

16 teachers for their initial entry into teaching. 

17 ‘‘(2) At least one State educational agency or 

18 local educational agency. 

19 ‘‘(3) One or more of the following entities: 

20 ‘‘(A) An institution of higher education 

21 (other than the institution described in para22 graph (1)). 

23 ‘‘(B) A school or department of education 

24 at an institution of higher education. 
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•S 1793 IS 

1 ‘‘(C) A school or college of arts and 

2 sciences (as defined in section 201(b)) at an in3 stitution of higher education. 

4 ‘‘(D) A professional association, founda5 tion, museum, library, for-profit business, pub6 lic or private nonprofit organization, commu7 nity-based organization, or other entity, with 

8 the capacity to contribute to the technology-re9 lated reform of teacher preparation programs. 

10 ‘‘(b) APPLICATION REQUIREMENTS.—In order to re11 ceive a grant or enter into a contract or cooperative agree12 ment under this part, an eligible applicant shall submit 

13 an application to the Secretary at such time, in such man14 ner, and containing such information as the Secretary may 

15 require. Such application shall include the following: 

16 ‘‘(1) A description of the proposed project, in17 cluding how the project would—

18 ‘‘(A) ensure that individuals participating 

19 in the project would be prepared to use ad20 vanced technology to prepare all students, in21 cluding groups of students who are underrep22 resented in technology-related fields and groups 

23 of students who are economically disadvan24 taged, to meet challenging State and local aca-
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•S 1793 IS 

1 demic content and student academic achieve2 ment standards; and 

3 ‘‘(B) improve the ability of at least one 

4 participating institution of higher education de5 scribed in section 222(a)(1) to ensure such 

6 preparation. 

7 ‘‘(2) A demonstration of—

8 ‘‘(A) the commitment, including the finan9 cial commitment, of each of the members of the 

10 consortium for the proposed project; and 

11 ‘‘(B) the active support of the leadership of 

12 each organization that is a member of the con13 sortium for the proposed project. 

14 ‘‘(3) A description of how each member of the 

15 consortium will participate in project activities. 

16 ‘‘(4) A description of how the proposed project 

17 will be continued after Federal funds are no longer 

18 awarded under this part for the project. 

19 ‘‘(5) A plan for the evaluation of the project, 

20 which shall include benchmarks to monitor progress 

21 toward specific project objectives. 

22 ‘‘(c) MATCHING REQUIREMENTS.—

23 ‘‘(1) IN GENERAL.—The Federal share of the 

24 cost of any project funded under this part shall not 

25 exceed 50 percent. Except as provided in paragraph
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•S 1793 IS 

1 (2), the non-Federal share of the cost of such 

2 project may be provided in cash or in kind, fairly 

3 evaluated, including services. 

4 ‘‘(2) ACQUISITION OF EQUIPMENT.—Not more 

5 than 10 percent of the funds awarded for a project 

6 under this part may be used to acquire equipment, 

7 networking capabilities, or infrastructure, and the 

8 non-Federal share of the cost of any such acquisition 

9 shall be provided in cash. 

10 ‘‘SEC. 223. USE OF FUNDS. 

11 ‘‘(a) REQUIRED USES.—A consortium that receives 

12 a grant or enters into a contract or cooperative agreement 

13 under this part shall use funds made available under this 

14 part for—

15 ‘‘(1) a project creating one or more programs 

16 that prepare prospective teachers to use advanced 

17 technology to prepare all students, including groups 

18 of students who are underrepresented in technology19 related fields and groups of students who are eco20 nomically disadvantaged, to meet challenging State 

21 and local academic content and student academic 

22 achievement standards; and 

23 ‘‘(2) evaluating the effectiveness of the project. 

24 ‘‘(b) PERMISSIBLE USES.—The consortium may use 

25 funds made available under this part for a project, de-
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•S 1793 IS 

1 scribed in the application submitted by the consortium 

2 under this part, that carries out the purpose of this part, 

3 such as the following: 

4 ‘‘(1) Developing and implementing high-quality 

5 teacher preparation programs that enable edu6 cators—

7 ‘‘(A) to learn the full range of resources 

8 that can be accessed through the use of tech9 nology; 

10 ‘‘(B) to integrate a variety of technologies 

11 into curricula and instruction in order to ex12 pand students’ knowledge; 

13 ‘‘(C) to evaluate educational technologies 

14 and their potential for use in instruction; 

15 ‘‘(D) to help students develop their tech16 nical skills; and 

17 ‘‘(E) to use technology to collect, manage, 

18 and analyze data to improve teaching and deci19 sionmaking. 

20 ‘‘(2) Developing alternative teacher development 

21 paths that provide elementary schools and secondary 

22 schools with well-prepared, technology-proficient 

23 educators. 

24 ‘‘(3) Developing achievement-based standards 

25 and assessments aligned with the standards to meas-
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•S 1793 IS 

1 ure the capacity of prospective teachers to use tech2 nology effectively in their classrooms. 

3 ‘‘(4) Providing technical assistance to entities 

4 carrying out other teacher preparation programs. 

5 ‘‘(5) Developing and disseminating resources 

6 and information in order to assist institutions of 

7 higher education to prepare teachers to use tech8 nology effectively in their classrooms. 

9 ‘‘(6) Subject to section 222(c)(2), acquiring 

10 technology equipment, networking capabilities, infra11 structure, software, and digital curricula to carry 

12 out the project. 

13 ‘‘SEC. 224. AUTHORIZATION OF APPROPRIATIONS. 

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

15 this part—

16 ‘‘(1) $150,000,000 for fiscal year 2004; and 

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

18 of the 5 succeeding fiscal years.’’. 
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1 TITLE III—DIVERSITY, RETEN2 TION, AND ENRICHED ACA3 DEMICS FOR MATRICU4 LATING STUDENTS 

5 SEC. 301. TEST PREPARATION FOR LOW-INCOME STU6 DENTS. 

7 Title I of the Elementary and Secondary Education 

8 Act of 1965 (20 U.S.C. 6301 et seq.) is amended by add9 ing at the end the following: 

10 ‘‘PART J—TEST PREPARATION FOR LOW-INCOME 

11 STUDENTS 

12 ‘‘SEC. 1910. DEFINITIONS. 

13 ‘‘In this part: 

14 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en15 tity’ means a public, private, or nonprofit entity (in16 cluding a secondary school or a local educational 

17 agency) that—

18 ‘‘(A) offers a program to prepare students 

19 for college admissions tests; and 

20 ‘‘(B) has a verified track record of not less 

21 than 3 years of increasing the average college 

22 admissions test score of students who partici23 pate in such program. 

24 ‘‘(2) ELIGIBLE LOCAL EDUCATIONAL AGEN25 CY.—The term ‘eligible local educational agency’
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1 means a local educational agency for which the num2 ber of children determined under section 1124(c) for 

3 that local educational agency constitute more than—

4 ‘‘(A) the percentage described in section 

5 1125(c)(2)(B)(v) of the agency’s total popu6 lation aged 5 to 17; or 

7 ‘‘(B) the number described in section 

8 1125(c)(2)(C)(v) of the agency’s total popu9 lation aged 5 to 17. 

10 ‘‘(3) ELIGIBLE SECONDARY SCHOOL.—The 

11 term ‘eligible secondary school’—

12 ‘‘(A) means a secondary school that re13 ceives Federal assistance under part A and is 

14 served by an eligible local educational agency; 

15 and 

16 ‘‘(B) includes a secondary school that does 

17 not receive Federal assistance under part A for 

18 a fiscal year if such secondary school is served 

19 by an eligible local educational agency that 

20 serves secondary schools, none of which received 

21 Federal assistance under part A for such fiscal 

22 year. 

23 ‘‘SEC. 1911. ESTABLISHMENT. 

24 ‘‘From amounts appropriated under section 1917 for 

25 a fiscal year, the Secretary shall award grants, on a com-
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•S 1793 IS 

1 petitive basis, to eligible local educational agencies to en2 able such agencies to fund college admissions test prepara3 tion programs for juniors and seniors at eligible secondary 

4 schools served by such agencies. 

5 ‘‘SEC. 1912. APPLICATION. 

6 ‘‘An eligible local educational agency that desires a 

7 grant under this part shall submit an application to the 

8 Secretary at such time, in such manner, and containing 

9 such information as the Secretary may require. 

10 ‘‘SEC. 1913. DURATION. 

11 ‘‘Grants awarded under this subpart shall be for a 

12 period of not less than 3 years. 

13 ‘‘SEC. 1914. USE OF FUNDS. 

14 ‘‘(a) IN GENERAL.—An eligible local educational 

15 agency that receives a grant under this part shall use the 

16 grant funds to provide, through an eligible entity, a college 

17 admissions test preparation program for juniors and sen18 iors at eligible secondary schools served by such agency 

19 that uses methods that have proven effective in preparing 

20 students for college admissions tests. 

21 ‘‘(b) METHODS.—

22 ‘‘(1) IN GENERAL.—A college admissions test 

23 preparation program funded under this part shall—
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•S 1793 IS 

1 ‘‘(A) use methods that have proven effec2 tive in preparing students for college admissions 

3 tests; 

4 ‘‘(B) to the extent practicable, be adminis5 tered through instructor led, classroom-based 

6 courses; and 

7 ‘‘(C) consist of a minimum of 25 hours of 

8 instructional (nontesting) time. 

9 ‘‘(2) ONLINE COURSES.—

10 ‘‘(A) IN GENERAL.—An eligible local edu11 cational agency may enter into a contract with 

12 an eligible entity to provide a college admissions 

13 test preparation program that will be offered 

14 online if—

15 ‘‘(i) a classroom-based college admis16 sions test preparation program provided by 

17 an eligible entity is not available; and 

18 ‘‘(ii) the eligible entity providing such 

19 online program has a verified track record 

20 of not less than 3 years of increasing the 

21 average college admissions test score of 

22 students served through such online pro23 gram. 

24 ‘‘(B) SUPERVISION; ADMINISTRATION.—An 

25 online college admissions test preparation pro-
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•S 1793 IS 

1 gram shall be supervised or administered by a 

2 teacher, administrator, or coach who has re3 ceived appropriate professional development to 

4 support student success in such online program. 

5 ‘‘(c) COMPARABLE SERVICE.—An eligible entity that 

6 is not a school or local educational agency and that re7 ceives a contract under this section shall—

8 ‘‘(1) provide comparable services in programs 

9 offered under this part as in programs such entity 

10 offers to such entity’s other customers; and 

11 ‘‘(2) provide services in programs offered under 

12 this part for not more than 75 percent of such enti13 ty’s national average rate per student for com14 parable programs. 

15 ‘‘(d) PRACTICE EXAMINATIONS.—

16 ‘‘(1) PRIOR TO PREPARATION.—

17 ‘‘(A) IN GENERAL.—Programs provided 

18 under this section shall require each partici19 pating student to complete a practice examina20 tion of the college admissions test the student 

21 will be preparing for, prior to preparing such 

22 student for such college admissions test. 

23 ‘‘(B) PREVIOUSLY ADMINISTERED; SAME

24 TIMEFRAME AND SETTING.—The practice ex-
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•S 1793 IS 

1 amination described under subparagraph (A) 

2 shall be—

3 ‘‘(i) an examination previously admin4 istered by the College Board, ACT Inc., or 

5 other college admissions tests’ respective 

6 administrator; and 

7 ‘‘(ii) administered in a timeframe and 

8 setting similar to that of the examination 

9 when administered by the College Board, 

10 ACT Inc., or other college admissions 

11 tests’ respective administrator. 

12 ‘‘(2) AFTER PREPARATION.—

13 ‘‘(A) IN GENERAL.—Programs provided 

14 under subsection (a) shall require each partici15 pating student to complete a practice examina16 tion of the college admissions test the student 

17 prepared for at the completion of the program. 

18 ‘‘(B) PREVIOUSLY ADMINISTERED; SAME

19 TIMEFRAME AND SETTING.—The practice ex20 amination described under subparagraph (A)—

21 ‘‘(i) shall be an examination pre22 viously administered by the College Board, 

23 ACT Inc., or other college admissions 

24 tests’ respective administrator;
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•S 1793 IS 

1 ‘‘(ii) shall not be the same practice ex2 amination given at the start of the pro3 gram, given at any time during the pro4 gram, or used as a study aid during the 

5 program; and 

6 ‘‘(iii) shall be administered in a time7 frame and setting similar to that of the ex8 amination when administered by the Col9 lege Board, ACT Inc., or other college ad10 missions tests’ respective administrator. 

11 ‘‘(e) SUPPLEMENTAL PREPARATION AND GUID12 ANCE.—An eligible entity that receives a contract under 

13 this section or an eligible local educational agency that de14 velops and implements a school-based college admissions 

15 test preparation program under this section shall—

16 ‘‘(1) provide supplemental preparation for those 

17 students that need such supplemental preparation to 

18 prepare for college admissions tests in the form of 

19 prepreparation review of skills and knowledge, in20 cluding in mathematics, grammar, and vocabulary; 

21 ‘‘(2) ensure that students participating in pro22 grams funded under this part receive counseling on 

23 college admissions, including information on select24 ing an institution of higher education, the applica25 tion process and related requirements, the avail-
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•S 1793 IS 

1 ability of supports and services to facilitate transi2 tion to and success in postsecondary education, and 

3 the availability of financial aid; and 

4 ‘‘(3) offer not less than 1 seminar or class on 

5 the counseling described under paragraph (2) that 

6 shall be held during evening or weekend hours and 

7 parents shall be invited to attend such seminar or 

8 class. 

9 ‘‘(f) LOCAL EDUCATIONAL AGENCY SEPARATE PRO10 GRAMS.—An eligible local educational agency that enters 

11 into a contract with an eligible entity pursuant to this sec12 tion—

13 ‘‘(1) may conduct activities described under 

14 subsection (e) separate from such contract; and 

15 ‘‘(2) may not use more than 5 percent of the 

16 grant funds to conduct activities described under 

17 subsection (e) separate from such contract. 

18 ‘‘SEC. 1915. REPORTING REQUIREMENT. 

19 ‘‘(a) LOCAL EDUCATIONAL AGENCY.—An eligible 

20 local educational agency that develops and implements a 

21 school-based college admissions test preparation program 

22 under section 1914(a)(1) shall submit to the Secretary a 

23 report that includes—
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•S 1793 IS 

1 ‘‘(1) the number of students who started the 

2 program, disaggregated by race and gender where 

3 appropriate; 

4 ‘‘(2) the number of students who completed the 

5 program, disaggregated by race and gender where 

6 appropriate; 

7 ‘‘(3) the number of students participating in 

8 the program who subsequently take the officially ad9 ministered college admissions test for which such 

10 students were preparing, disaggregated by race and 

11 gender where appropriate; and 

12 ‘‘(4) average scores for participating students 

13 on the preprogram test pursuant to section 

14 1914(d)(1), and the end of program test pursuant to 

15 section 1914(d)(2). 

16 ‘‘(b) ELIGIBLE ENTITY.—An eligible entity that re17 ceives a contract under section 1914 shall submit to the 

18 eligible local educational agency that has contracted for 

19 such eligible entity’s services a report that includes the 

20 information described in subsection (a) and any other in21 formation the eligible local educational agency shall rea22 sonably require. 

23 ‘‘(c) FAILURE TO SUBMIT SCORES.—An eligible local 

24 educational agency or eligible entity that fails to submit 

25 the average scores for participating students on the 
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•S 1793 IS 

1 preprogram test pursuant to section 1914(d)(1), and the 

2 end of program test pursuant to section 1914(d)(2) shall 

3 have such agency or entity’s grant terminated at the dis4 cretion of the Secretary. 

5 ‘‘SEC. 1916. SCORE IMPROVEMENT. 

6 ‘‘(a) REPORT.—Not less than once every 3 years, the 

7 Secretary shall review and report to Congress on all pro8 grams funded under this part to ensure that such pro9 grams are improving the scores of students participating 

10 in the program. 

11 ‘‘(b) NON-ELIGIBILITY.—Programs funded under 

12 this part that are determined by the Secretary to have 

13 not significantly improved the average score of partici14 pating students shall no longer be eligible for grants under 

15 this part. 

16 ‘‘SEC. 1917. AUTHORIZATION OF APPROPRIATIONS. 

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

18 this part $50,000,000 for fiscal year 2004 and such sums 

19 as may be necessary for each of the 5 succeeding fiscal 

20 years.’’. 

21 SEC. 302. ADMISSIONS AND RETENTION. 

22 (a) PROSPECTIVE STUDENT INFORMATION.—Part A 

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

24 1070 et seq.), as amended by section 105, is further 

25 amended by adding at the end the following: 
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•S 1793 IS 

1 ‘‘Subpart 11—Prospective Student Information 

2 ‘‘SEC. 420M. REPORTING. 

3 ‘‘(a) IN GENERAL.—An institution of higher edu4 cation that offers a baccalaureate degree and is eligible 

5 to receive assistance under this part shall include in such 

6 institution’s application for assistance under this part the 

7 following information: 

8 ‘‘(1) The percentage of freshman students en9 rolled at the institution in the previous academic 

10 year who were self-identified members of the fol11 lowing disaggregated categories: 

12 ‘‘(A) Individual major racial and ethnic 

13 groups. 

14 ‘‘(B) Male. 

15 ‘‘(C) Female. 

16 ‘‘(D) The relative of an alumnus, 

17 disaggregated by race and eligibility for Federal 

18 Pell Grants. 

19 ‘‘(E) Economically disadvantaged, as 

20 measured by eligibility for Federal Pell Grants. 

21 ‘‘(2) The percentage of freshman students en22 rolled at the institution in the previous academic 

23 year who were admitted to the institution through 

24 binding early decision, disaggregated by race and eli25 gibility for Federal Pell Grants.
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•S 1793 IS 

1 ‘‘(3) The percentage of freshman students en2 rolled at the institution in the previous academic 

3 year who were admitted to the institution through 

4 regular decision, disaggregated by race and eligi5 bility for Federal Pell Grants. 

6 ‘‘(b) DISAGGREGATION.—An institution of higher 

7 education shall provide specific disaggregated subgroup in8 formation under subsection (a) only if the number of stu9 dents in such subgroup is sufficient to yield statistically 

10 reliable information and reporting would not reveal per11 sonally identifiable information about an individual. If 

12 such number is not sufficient, the institution of higher 

13 education shall note that the institution enrolled too few 

14 of such students to report with confidence.’’. 

15 (b) ANTITRUST EXEMPTION.—

16 (1) DEFINITIONS.—In this subsection: 

17 (A) ANTITRUST LAWS.—The term ‘‘anti18 trust laws’’ has the meaning given such term in 

19 subsection (a) of the first section of the Clayton 

20 Act (15 U.S.C. 12(a)), except that such term 

21 includes section 5 of the Federal Trade Com22 mission Act (15 U.S.C. 45) to the extent such 

23 section 5 applies to unfair methods of competi24 tion. 
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•S 1793 IS 

1 (B) INSTITUTION OF HIGHER EDU2 CATION.—The term ‘‘institution of higher edu3 cation’’—

4 (i) means an institution of higher edu5 cation as defined in section 101 of the 

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

7 1001); and 

8 (ii) includes any individual acting on 

9 behalf of such an institution. 

10 (2) EXEMPTION.—The antitrust laws shall not 

11 apply to any joint discussion, consideration, review, 

12 action, or agreement by or among institutions of 

13 higher education, or their representatives, for the 

14 purpose of, and limited to, developing and dissemi15 nating guidelines designed to end binding early deci16 sion admissions policies. 

17 (c) RETENTION.—

18 (1) GRANT PROGRAM.—Part A of title III of 

19 the Higher Education Act of 1965 (20 U.S.C. 1057 

20 et seq.) is amended by adding at the end the fol21 lowing: 
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•S 1793 IS 

1 ‘‘SEC. 318. GRANT PROGRAM TO INCREASE STUDENT RE2 TENTION AND PROMOTE ARTICULATION 

3 AGREEMENTS. 

4 ‘‘(a) AUTHORIZATION OF PROGRAM.—The Secretary 

5 shall award grants, on a competitive basis, to eligible insti6 tutions to enable the institutions to—

7 ‘‘(1) focus on increasing traditional and non8 traditional student retention at such institutions; 

9 and 

10 ‘‘(2) promote articulation agreements among 

11 different institutions that will increase the likelihood 

12 of progression of students at such institutions to 

13 baccalaureate degrees. 

14 ‘‘(b) DEFINITION OF ELIGIBLE INSTITUTION.—In 

15 this section, the term ‘eligible institution’ means an insti16 tution of higher education (as defined in section 101(a)) 

17 where not less than 40 percent of such institution’s stu18 dent body receives financial aid under subpart 1 of part 

19 A of title IV. 

20 ‘‘(c) APPLICATION.—An eligible institution that de21 sires a grant under this section shall submit an application 

22 to the Secretary at such time, in such manner, and con23 taining such information as the Secretary may require. 

24 ‘‘(d) MANDATORY ACTIVITIES.—An eligible institu25 tion that receives a grant under this section shall use the 

26 grant funds to carry out each of the following: 
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•S 1793 IS 

1 ‘‘(1) Offering counseling services to help stu2 dents cope with the challenges they are facing and 

3 identify the services that are available to help them 

4 persist in their education. 

5 ‘‘(2) Making mentors available to all students 

6 that are at risk for not completing a degree. 

7 ‘‘(3) Providing detailed assistance to all stu8 dents who request help in understanding—

9 ‘‘(A) the options for financing their edu10 cation, including information on grants, loans, 

11 and loan repayment programs; 

12 ‘‘(B) the process of applying for financial 

13 assistance; 

14 ‘‘(C) the outcome of their financial assist15 ance application; and 

16 ‘‘(D) any unanticipated problems related to 

17 financing their education that arise. 

18 ‘‘(4) Offering tutoring to all students who re19 quest assistance with any course or subject. 

20 ‘‘(5) Conducting outreach activities so that all 

21 students know that these services are available and 

22 are aware of how to access the services. 

23 ‘‘(6) Making services listed in paragraphs (1) 

24 through (4) available in students’ native languages, 

25 if it is not English, if the percentage of students 
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•S 1793 IS 

1 needing translation services in a specific language 

2 exceeds 5 percent. 

3 ‘‘(e) PERMISSIBLE ACTIVITIES.—An eligible institu4 tion that receives a grant under this section may use grant 

5 funds to carry out any of the following activities: 

6 ‘‘(1) Providing intensive remedial academic in7 struction. 

8 ‘‘(2) Designing innovative course schedules to 

9 meet the needs of working adults, such as classes 

10 that are concentrated on weekends or over short pe11 riods of time. 

12 ‘‘(3) Designing and implementing online 

13 courses or components of courses to allow nontradi14 tional students to obtain an education when their 

15 family or professional responsibilities, or both, make 

16 it difficult for them to attend class on campus at 

17 prespecified, regular times. 

18 ‘‘(4) Offering childcare during the hours when 

19 students have class or are studying. 

20 ‘‘(5) Providing transportation assistance to stu21 dents that helps such students manage their sched22 ules. 

23 ‘‘(6) Partnering with local businesses to create 

24 flexible work-hour programs so that students can 

25 balance work and school.
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•S 1793 IS 

1 ‘‘(7) Offering time management seminars or 

2 personal coaches to help students improve their time 

3 management skills. 

4 ‘‘(8) Any other activities the Secretary believes 

5 will promote retention of students attending eligible 

6 institutions. 

7 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

8 is authorized to be appropriated to carry out this section 

9 $100,000,000 for fiscal year 2004 and such sums as may 

10 be necessary for each of the 5 succeeding fiscal years.’’. 

11 (2) INSTITUTIONAL SUPPORT SERVICES.—Part 

12 B of title I of the Higher Education Act of 1965 (20 

13 U.S.C. 1011 et seq.) is amended by adding at the 

14 end the following: 

15 ‘‘SEC. 123. INSTITUTIONAL SUPPORT SERVICES TO IN16 CREASE STUDENT RETENTION. 

17 ‘‘(a) DETERMINATION OF RATES.—

18 ‘‘(1) IN GENERAL.—Beginning on the date that 

19 is 2 years after the date of enactment of this sec20 tion, and annually thereafter, an institution of high21 er education shall determine for the preceding aca22 demic year the rates of baccalaureate degree comple23 tion not later than 6 years after enrollment for stu24 dents enrolled at such institution, disaggregated by 
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•S 1793 IS 

1 race, gender, and eligibility for Federal Pell Grants, 

2 if the institution of higher education—

3 ‘‘(A) receives Federal funds; 

4 ‘‘(B) is eligible for assistance under title 

5 IV; 

6 ‘‘(C) is not eligible for assistance under 

7 section 318; and 

8 ‘‘(D) awards a baccalaureate degree. 

9 ‘‘(2) DISAGGREGATION.—An institution of high10 er education shall provide specific disaggregated sub11 group information under paragraph (1) only if the 

12 number of students in such subgroup is sufficient to 

13 yield statistically reliable information and reporting 

14 would not reveal personally identifiable information 

15 about an individual. If such number is not sufficient, 

16 the institution of higher education shall note that 

17 the institution enrolled too few of such students to 

18 report with confidence. 

19 ‘‘(b) SUPPORT SERVICES FOR AT RISK STUDENTS.—

20 ‘‘(1) IN GENERAL.—Beginning on the date that 

21 is 2 years after the date of enactment of this sec22 tion, and annually thereafter, each institution of 

23 higher education that has a disparity of 20 or more 

24 percentage points in the rates determined under sub25 section (a) between any 2 or more subgroups in all 
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•S 1793 IS 

1 the disaggregated categories for an academic year 

2 shall increase, from the level provided in such aca3 demic year and in accordance with paragraph (2), 

4 support services for the students in the subgroups in 

5 which the baccalaureate degree completion rate is 20 

6 or more percentage points below the completion rate 

7 for the subgroup with the highest completion rate. 

8 ‘‘(2) AMOUNT OF INCREASE AND ACTIVITIES.—

9 ‘‘(A) INCREASE.—The amount of the in10 crease required under paragraph (1) for an aca11 demic year shall be equal to 5 percent of the 

12 amount of assistance received by the institution 

13 of higher education under part C of title IV and 

14 subpart 3 of part A of title IV for such aca15 demic year. 

16 ‘‘(B) ACTIVITIES.—

17 ‘‘(i) MANDATORY ACTIVITIES.—The 

18 amount of the increase required under 

19 paragraph (1) shall be used to carry out 

20 the following activities: 

21 ‘‘(I) Offering counseling services 

22 to help students cope with the chal23 lenges they are facing and identify the 

24 services that are available to help 

25 them persist in their education. 
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•S 1793 IS 

1 ‘‘(II) Making mentors available 

2 to all students that are at risk for not 

3 completing a degree. 

4 ‘‘(III) Providing detailed assist5 ance to all students who request help 

6 in understanding—

7 ‘‘(aa) the options for financ8 ing their education, including in9 formation on grants, loans, and 

10 loan repayment programs; 

11 ‘‘(bb) the process of apply12 ing for financial assistance; 

13 ‘‘(cc) the outcome of their fi14 nancial assistance application; 

15 and 

16 ‘‘(dd) any unanticipated 

17 problems related to financing 

18 their education that arise. 

19 ‘‘(IV) Offering tutoring to all 

20 students who request assistance with 

21 any course or subject. 

22 ‘‘(V) Conducting outreach activi23 ties so that all students know that 

24 these services are available and are 

25 aware of how to access the services. 
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•S 1793 IS 

1 ‘‘(VI) Making services listed in 

2 subclauses (I) through (IV) available 

3 in students’ native languages, if it is 

4 not English, if the percentage of stu5 dents needing translation services in a 

6 specific language exceeds 5 percent. 

7 ‘‘(ii) PERMISSIBLE ACTIVITIES.—The 

8 amount of the increase required under 

9 paragraph (1) may be used to carry out 

10 any of the following activities: 

11 ‘‘(I) Providing intensive remedial 

12 academic instruction. 

13 ‘‘(II) Designing innovative course 

14 schedules to meet the needs of work15 ing adults, such as classes that are 

16 concentrated on weekends or over 

17 short periods of time. 

18 ‘‘(III) Designing and imple19 menting online courses or components 

20 of courses to allow nontraditional stu21 dents to obtain an education when 

22 their family or professional respon23 sibilities, or both, make it difficult for 

24 them to attend class on campus at 

25 prespecified, regular times.
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•S 1793 IS 

1 ‘‘(IV) Offering childcare during 

2 the hours when students have class or 

3 are studying. 

4 ‘‘(V) Providing transportation as5 sistance to students that helps such 

6 students manage their schedules. 

7 ‘‘(VI) Partnering with local busi8 nesses to create flexible work-hour 

9 programs so that students can balance 

10 work and school. 

11 ‘‘(VII) Offering time manage12 ment seminars or personal coaches to 

13 help students improve their time man14 agement skills. 

15 ‘‘(VIII) Any other activities the 

16 Secretary believes will promote reten17 tion of students attending eligible in18 stitutions.’’. 

19 SEC. 303. FEDERAL TRIO PROGRAM. 

20 Section 402A of the Higher Education Act of 1965 

21 (20 U.S.C. 1070a–11) is amended—

22 (1) in subsection (b)(3)—

23 (A) in subparagraph (A), by striking 

24 ‘‘$170,000’’ and inserting ‘‘$190,000’’; 
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•S 1793 IS 

1 (B) in subparagraph (B), by striking 

2 ‘‘$180,000’’ and inserting ‘‘$200,000’’; and 

3 (C) in subparagraph (C), by striking 

4 ‘‘$190,000’’ and inserting ‘‘$220,000’’; and 

5 (2) in subsection (f), by striking the first sen6 tence and inserting the following: ‘‘For the purpose 

7 of making grants and contracts under this chapter, 

8 there are authorized to be appropriated 

9 $1,250,000,000 for fiscal year 2004 and such sums 

10 as may be necessary for each of the 5 succeeding fis11 cal years’’. 

12 SEC. 304. GEAR UP. 

13 (a) EARLY INTERVENTION AND COLLEGE AWARE14 NESS PROGRAM AUTHORIZED.—Section 404A(b) of the 

15 Higher Education Act of 1965 (20 U.S.C. 1070a–21(b)) 

16 is amended—

17 (1) in paragraph (1), by inserting ‘‘6 year’’ 

18 after ‘‘shall make’’; and 

19 (2) by adding at the end the following: 

20 ‘‘(3) CURRENT GRANTEES.—An eligible entity 

21 that has received an award under this section, has 

22 performed successfully, and still has need for an 

23 award may apply for an additional award under this 

24 section.’’. 
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•S 1793 IS 

1 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 404H of the Higher Education Act of 1965 (20 U.S.C. 

3 1070a–28) is amended by striking ‘‘$200,000,000 for fis4 cal year 1999 and such sums as may be necessary for each 

5 of the 4 succeeding fiscal years’’ and inserting 

6 ‘‘$500,000,000 for fiscal year 2004 and such sums as may 

7 be necessary for each of the 5 succeeding fiscal years’’. 

8 SEC. 305. LEVERAGING EDUCATIONAL ASSISTANCE PART9 NERSHIP PROGRAM. 

10 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

11 415A(b) of the Higher Education Act of 1965 (20 U.S.C. 

12 1070c(b)) is amended by striking paragraphs (1) and (2) 

13 and inserting the following: 

14 ‘‘(1) IN GENERAL.—There are authorized to be 

15 appropriated $200,000,000 for fiscal year 2004, and 

16 such sums as may be necessary for each of the 5 

17 succeeding fiscal years. 

18 ‘‘(2) RESERVATION.—For any fiscal year for 

19 which the amount appropriated under paragraph 

20 (1)—

21 ‘‘(A) exceeds $30,000,000, the excess 

22 amount up to and including $67,000,000 shall 

23 be available to carry out section 415E; and 
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•S 1793 IS 

1 ‘‘(B) exceeds $67,000,000, the excess 

2 amount shall be available to carry out section 

3 415F.’’. 

4 (b) INCREASE IN MAXIMUM STUDENT GRANTS.—

5 Section 415C(b)(2) of the Higher Education Act of 1965 

6 (20 U.S.C. 1070c–2(b)(2)) is amended by striking 

7 ‘‘$5,000’’ and inserting ‘‘$12,500’’. 

8 (c) SPECIAL LEVERAGING EDUCATIONAL ASSIST9 ANCE PARTNERSHIP PROGRAM.—Section 415E(a) of the 

10 Higher Education Act of 1965 (20 U.S.C. 1070c–3a(a) 

11 is amended by striking ‘‘section 415A(b)(2)’’ and inserting 

12 ‘‘section 415A(b)(2)(A)’’. 

13 (d) GRANTS FOR ACCESS AND PERSISTENCE.—Sub14 part 4 of part A of title IV of the Higher Education Act 

15 of 1965 (20 U.S.C. 1070c et seq.) is amended—

16 (1) by redesignating section 415F as section 

17 415G; and 

18 (2) by inserting after section 415E the fol19 lowing: 

20 ‘‘SEC. 415F. GRANTS FOR ACCESS AND PERSISTENCE. 

21 ‘‘(a) AUTHORIZATION.—From amounts reserved 

22 under section 415A(b)(2)(B) for each fiscal year, the Sec23 retary shall make supplemental allotments among States 

24 in the same manner as the Secretary makes allotments 

25 among States under section 415B to pay the Federal 
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•S 1793 IS 

1 share of the cost of the authorized activities under sub2 section (c). 

3 ‘‘(b) APPLICATION.—

4 ‘‘(1) IN GENERAL.—

5 ‘‘(A) SUBMISSION.—A State that desires 

6 to receive a supplemental allotment under this 

7 section shall submit an application to the Sec8 retary at such time, in such manner, and con9 taining such information as the Secretary may 

10 require. 

11 ‘‘(B) CONTENT.—An application submitted 

12 under subparagraph (A) shall include both of 

13 the following: 

14 ‘‘(i) A description of the State’s plan 

15 for using the supplemental allotment 

16 funds. 

17 ‘‘(ii) Assurances that the State will 

18 provide matching funds, from State, insti19 tutional, philanthropic, or private funds, of 

20 not less than 33.33 percent of the cost of 

21 carrying out the activities under subsection 

22 (c). The State shall specify the methods by 

23 which matching funds will be paid and in24 clude provisions designed to ensure that 

25 funds provided under this section will be
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•S 1793 IS 

1 used to supplement, and not supplant, 

2 non-Federal funds available for carrying 

3 out the activities under subsection (c). 

4 ‘‘(C) APPROVAL.—The Secretary shall ap5 prove and fund applications that meet the re6 quirements of this section. 

7 ‘‘(2) STATE AGENCY.—The State agency that 

8 submits an application for a State under section 

9 415C(a) shall be the same State agency that sub10 mits an application under paragraph (1) for such 

11 State. 

12 ‘‘(3) PARTNERSHIP.—

13 ‘‘(A) MANDATORY PARTNERS.—In apply14 ing for a supplemental allotment under this sec15 tion, the State agency shall apply for a supple16 mental allotment in partnership with not less 

17 than 1 public and 1 private degree granting in18 stitution of higher education that are located in 

19 the State. 

20 ‘‘(B) PERMISSIVE PARTNERS.—In addition 

21 to applying for a supplemental allotment under 

22 this section in partnership with degree granting 

23 institutions of higher education, a State agency 

24 may also apply in partnership with philan25 thropic organizations that are located in the 
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•S 1793 IS 

1 State and private corporations that do business 

2 in the State. 

3 ‘‘(c) AUTHORIZED ACTIVITIES.—

4 ‘‘(1) IN GENERAL.—

5 ‘‘(A) ESTABLISHMENT OF PROGRAM.—

6 Each State receiving a supplemental allotment 

7 under this section shall use the funds to estab8 lish a program to award access and persistence 

9 grants to eligible low-income students in order 

10 to increase the amount of financial assistance 

11 such students receive under this subpart for un12 dergraduate education expenses. 

13 ‘‘(B) AMOUNT.—

14 ‘‘(i) PARTNERSHIPS WITH LESS THAN

15 A MAJORITY OF INSTITUTIONS IN THE

16 STATE.—

17 ‘‘(I) IN GENERAL.—In the case 

18 where a State receiving a supple19 mental allotment under this section is 

20 in a partnership described in subpara21 graph (A) or (B) of subsection (d)(2), 

22 the amount of an access and persist23 ence grant awarded by such State 

24 shall be not less than the amount that 

25 is equal to the average undergraduate 
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•S 1793 IS 

1 tuition and mandatory fees at 4-year 

2 public institutions of higher education 

3 in the State where the student resides 

4 (less any other government sponsored 

5 grant amount or scholarship amount, 

6 or both, received by the student) and 

7 such amount shall be used toward the 

8 cost of attendance at an institution of 

9 higher education, located in the State, 

10 that is a partner in the program. 

11 ‘‘(II) COST OF ATTENDANCE.—A 

12 State that has a program, apart from 

13 the program under this section, of 

14 providing eligible low-income students 

15 with grants that are equal to the aver16 age undergraduate tuition and man17 datory fees at 4-year public institu18 tions of higher education in the State, 

19 may increase the amount of access 

20 and persistence grants awarded by 

21 such State to an amount that is equal 

22 to the average cost of attendance at 4-

23 year public institutions of higher edu24 cation in the State. 
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•S 1793 IS 

1 ‘‘(ii) PARTNERSHIP WITH A MAJORITY

2 OF INSTITUTIONS IN THE STATE.—In the 

3 case where a State receiving a supple4 mental allotment under this section is in a 

5 partnership described in subsection 

6 (d)(2)(C), the amount of an access and 

7 persistence grant awarded by such State 

8 shall be equal to the average cost of at9 tendance at 4-year public institutions of 

10 higher education in the State where the 

11 student resides (less any other government 

12 sponsored grant amount or scholarship 

13 amount, or both, received by the student) 

14 and such amount shall be used by the stu15 dent to attend an institution of higher edu16 cation, located in the State, that is a part17 ner in the program. 

18 ‘‘(2) ELIGIBLE LOW-INCOME STUDENTS.—

19 ‘‘(A) IN GENERAL.—Each State receiving 

20 a supplemental allotment under this section 

21 shall—

22 ‘‘(i) annually make a determination of 

23 which students in grade 7 through grade 

24 12 in the State are eligible to receive an 

25 access and persistence grant if such stu-
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•S 1793 IS 

1 dents graduate from secondary school and 

2 enroll at an institution of higher education 

3 that is a partner in the program; and 

4 ‘‘(ii) notify such students of their eli5 gibility to receive an access and persistence 

6 grant. 

7 ‘‘(B) PRIORITY.—In determining which 

8 students are eligible to receive access and per9 sistence grants, the State shall give priority to 

10 students—

11 ‘‘(i) with an expected family contribu12 tion equal to zero (as described in section 

13 479(c)); 

14 ‘‘(ii) who are participating in, or have 

15 participated in, a Federal, State, institu16 tional, or community early intervention 

17 program, as recognized by the State agen18 cy administering the program; and 

19 ‘‘(iii) who qualify for a free or reduced 

20 price lunch under the Richard B. Russell 

21 National School Lunch Act (42 U.S.C. 

22 1751 et seq.). 

23 ‘‘(C) CONTENT OF NOTICE.—The notifica24 tion under subparagraph (A)(ii) shall include—
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•S 1793 IS 

1 ‘‘(i) information that a student’s can2 didacy for an access and persistence grant 

3 is enhanced through participation in an 

4 early intervention program; 

5 ‘‘(ii) information that the grant award 

6 shall be used toward the cost of attendance 

7 at an institution of higher education that 

8 is a partner in the program and therefore 

9 such award is contingent upon the stu10 dent’s enrollment at such an institution; 

11 ‘‘(iii) an estimation of the amount of 

12 financial aid a student awarded an access 

13 and persistence grant could expect to re14 ceive, including an estimation of the 

15 amount of the access and persistence grant 

16 and an estimation of the amount of aid 

17 from the major Federal and State financial 

18 aid programs; and 

19 ‘‘(iv) instructions on how to apply for 

20 an access and persistence grant. 

21 ‘‘(3) GRANT AWARD.—If an eligible student, as 

22 determined under paragraph (2), has been accepted 

23 to an institution of higher education that is a part24 ner in the program, the State shall—
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•S 1793 IS 

1 ‘‘(A) notify the student of the amount of 

2 the access and persistence grant such student 

3 will receive if such student enrolls at such insti4 tution; and 

5 ‘‘(B) inform the student that the access 

6 and persistence grant will be awarded and 

7 grant funds will be distributed when such stu8 dent enrolls at such institution. 

9 ‘‘(4) DURATION OF AWARD.—An eligible stu10 dent that receives an access and persistence grant 

11 under this section shall receive such grant award for 

12 each year of such student’s undergraduate edu13 cation. 

14 ‘‘(d) FEDERAL SHARE.—

15 ‘‘(1) IN GENERAL.—The Federal share of the 

16 cost of the authorized activities described in sub17 section (c) for any fiscal year shall be not more than 

18 66.66 percent. 

19 ‘‘(2) FORMULA FOR FEDERAL SHARE.—In 

20 awarding supplemental allotments under this sec21 tion, the Secretary shall provide a match of the non22 Federal funds provided by the State in accordance 

23 with the following: 

24 ‘‘(A) If a State applies for a supplemental 

25 allotment under this section in partnership with 
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•S 1793 IS 

1 only less than a majority of the degree granting 

2 institutions of higher education located in the 

3 State, then the Federal share shall be equal to 

4 50 percent of the cost of carrying out the activi5 ties under subsection (c). 

6 ‘‘(B) If a State applies for a supplemental 

7 allotment under this section in partnership with 

8 less than a majority of the degree granting in9 stitutions of higher education located in the 

10 State, philanthropic organizations located in the 

11 State, and private corporations doing business 

12 in the State, then the Federal share shall be 

13 equal to 57 percent of the cost of carrying out 

14 the activities under subsection (c). 

15 ‘‘(C) If a State applies for a supplemental 

16 allotment under this section in partnership with 

17 a majority of the degree granting institutions of 

18 higher education located in the State, philan19 thropic organizations located in the State, and 

20 private corporations doing business in the 

21 State, then the Federal share shall be equal to 

22 66.66 percent of the cost of carrying out the ac23 tivities under subsection (c). 
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•S 1793 IS 

1 ‘‘(e) APPLICABILITY RULE.—The provisions of this 

2 subpart which are not inconsistent with this section shall 

3 apply to the program authorized by this section. 

4 ‘‘(f) MAINTENANCE OF EFFORT REQUIREMENT.—

5 Each State receiving a supplemental allotment under this 

6 section for a fiscal year shall provide the Secretary an as7 surance that the aggregate amount expended per student 

8 or the aggregate expenditures by the State, from funds 

9 derived from non-Federal sources, for the authorized ac10 tivities described in subsection (c) for the preceding fiscal 

11 year were not less than the amount expended per student 

12 or the aggregate expenditure by the State for the activities 

13 for the second preceding fiscal year.’’. 

14 TITLE IV—OPPORTUNITIES AT 

15 HISPANIC-SERVING INSTITU16 TIONS 

17 SEC. 401. POSTBACCALAUREATE OPPORTUNITIES FOR HIS18 PANIC AMERICANS. 

19 (a) ESTABLISHMENT OF PROGRAM.—Title V of the 

20 Higher Education Act of 1965 (20 U.S.C. 1101 et seq.) 

21 is amended—

22 (1) by redesignating part B as part C; 

23 (2) by redesignating sections 511 through 518 

24 as sections 521 through 528, respectively; and 

25 (3) by inserting after section 505 the following: 
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•S 1793 IS 

1 ‘‘PART B—PROMOTING POSTBACCALAUREATE 

2 OPPORTUNITIES FOR HISPANIC AMERICANS 

3 ‘‘SEC. 511. FINDINGS AND PURPOSES. 

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

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

6 the year 2050, 1 in 4 Americans will be of Hispanic 

7 origin. 

8 ‘‘(2) Despite the dramatic increase in the His9 panic population in the United States, the National 

10 Center for Education Statistics reported that in 

11 1999, Hispanics accounted for only 4 percent of the 

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

13 and 5 percent of first-professional degrees awarded 

14 in the United States. 

15 ‘‘(3) Although Hispanics constitute 10 percent 

16 of the college enrollment in the United States, they 

17 comprise only 3 percent of instructional faculty in 

18 colleges and universities. 

19 ‘‘(4) The future capacity for research and ad20 vanced study in the United States will require in21 creasing the number of Hispanics pursuing 

22 postbaccalaureate studies. 

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

24 the Nation in increasing the number of Hispanics 

25 attaining graduate and professional degrees. 
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•S 1793 IS 

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

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

3 Hispanic-serving institutions. 

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

5 Hispanic students earning master’s degrees at His6 panic-serving institutions grew 136 percent, the 

7 number receiving doctor’s degrees grew by 85 per8 cent, and the number earning first-professional de9 grees grew by 47 percent. 

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

11 capacity of Hispanic-serving institutions to offer 

12 graduate and professional degree programs. 

13 ‘‘(9) Research is a key element in graduate edu14 cation and undergraduate preparation, particularly 

15 in science and technology, and Congress desires to 

16 strengthen the role of research at Hispanic serving17 institutions. University research, whether performed 

18 directly or through a university’s nonprofit research 

19 institute or foundation, is considered an integral 

20 part of the institution and mission of the university. 

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

22 ‘‘(1) to expand postbaccalaureate educational 

23 opportunities for, and improve the academic attain24 ment of, Hispanic students; and
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•S 1793 IS 

1 ‘‘(2) to expand and enhance the 

2 postbaccalaureate academic offerings of high quality 

3 that are educating the majority of Hispanic college 

4 students and helping large numbers of Hispanic stu5 dents and low-income individuals complete postsec6 ondary degrees. 

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

8 ‘‘(a) PROGRAM AUTHORIZED.—Subject to the avail9 ability of funds appropriated to carry out this part, the 

10 Secretary shall award competitive grants to eligible insti11 tutions. 

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

13 ‘eligible institution’ means an institution of higher edu14 cation that—

15 ‘‘(1) is a Hispanic-serving institution (as de16 fined under section 502); and 

17 ‘‘(2) offers a postbaccalaureate certificate or de18 gree granting program. 

19 ‘‘SEC. 513. AUTHORIZED ACTIVITIES. 

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

21 1 or more of the following activities: 

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

23 laboratory equipment for educational purposes, in24 cluding instructional and research purposes. 
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•S 1793 IS 

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

2 and improvement in classroom, library, laboratory, 

3 and other instructional facilities, including purchase 

4 or rental of telecommunications technology equip5 ment or services. 

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

7 technical and other scientific journals, microfilm, 

8 microfiche, and other educational materials, includ9 ing telecommunications program materials. 

10 ‘‘(4) Support for needy postbaccalaureate stu11 dents including outreach, academic support services, 

12 mentoring, scholarships, fellowships, and other fi13 nancial assistance to permit the enrollment of such 

14 students in postbaccalaureate certificate and degree 

15 granting programs. 

16 ‘‘(5) Support of faculty exchanges, faculty de17 velopment, faculty research, curriculum development, 

18 and academic instruction. 

19 ‘‘(6) Creating or improving facilities for Inter20 net or other distance learning academic instruction 

21 capabilities, including purchase or rental of tele22 communications technology equipment or services. 

23 ‘‘(7) Collaboration with other institutions of 

24 higher education to expand postbaccalaureate certifi25 cate and degree offerings. 
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•S 1793 IS 

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

2 submitted pursuant to section 514 that—

3 ‘‘(A) contribute to carrying out the pur4 poses of this part; and 

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

6 of the review and acceptance of such applica7 tion. 

8 ‘‘SEC. 514. APPLICATION AND DURATION. 

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

10 apply for a grant under this part by submitting an applica11 tion to the Secretary at such time and in such manner 

12 as determined by the Secretary. Such application shall 

13 demonstrate how the grant funds will be used to improve 

14 postbaccalaureate education opportunities for Hispanic 

15 and low-income students and will lead to such students’ 

16 greater financial independence. 

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

18 awarded for a period not to exceed 5 years. 

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

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

21 any Hispanic-serving institution.’’. 

22 (b) COOPERATIVE ARRANGEMENTS.—Section 524 of 

23 the Higher Education Act of 1965 (as redesignated by 

24 subsection (a)(2)) is amended by inserting ‘‘and section 

25 513’’ after ‘‘section 503’’. 
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•S 1793 IS 

1 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 528(a) of the Higher Education Act of 1965 (as redesig3 nated by subsection (a)(2)) is amended to read as follows: 

4 ‘‘(a) AUTHORIZATIONS.—

5 ‘‘(1) PART A.—There are authorized to be ap6 propriated to carry out part A of this title 

7 $175,000,000 for fiscal year 2004 and such sums as 

8 may be necessary for each of the 5 succeeding fiscal 

9 years. 

10 ‘‘(2) PART B.—There are authorized to be ap11 propriated to carry out part B of this title 

12 $125,000,000 for fiscal year 2004 and such sums as 

13 may be necessary for each of the 5 succeeding fiscal 

14 years.’’. 

15 (d) CONFORMING AMENDMENTS.—Title V of the 

16 Higher Education Act of 1965 (20 U.S.C. 1101 et seq.) 

17 is amended—

18 (1) in section 502—

19 (A) in subsection (a)(2)(A)(ii), by striking 

20 ‘‘section 512(b)’’ and inserting ‘‘section 

21 522(b)’’; and 

22 (B) in subsection (b)(2), by striking ‘‘sec23 tion 512(a)’’ and inserting ‘‘section 522(a)’’; 
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•S 1793 IS 

1 (2) in section 521(c)(6) (as redesignated by 

2 subsection (a)(2)), by striking ‘‘section 516’’ and in3 serting ‘‘section 526’’; and 

4 (3) in section 526 (as redesignated by sub5 section (a)(2)), by striking ‘‘section 518’’ and insert6 ing ‘‘section 528’’. 

7 SEC. 402. DEFINITIONS. 

8 Section 502(a) of the Higher Education Act of 1965 

9 (20 U.S.C. 1101a(a)) is amended—

10 (1) in paragraph (5)—

11 (A) in subparagraph (A), by inserting 

12 ‘‘and’’ after the semicolon; 

13 (B) in subparagraph (B), by striking ‘‘; 

14 and’’ and inserting a period; and 

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

16 (2) by striking paragraph (7). 

17 SEC. 403. AUTHORIZED ACTIVITIES. 

18 Section 503(b)(7) of the Higher Education Act of 

19 1965 (20 U.S.C. 1101b(b)(7)) is amended to read as fol20 lows: 

21 ‘‘(7) Articulation agreements and student sup22 port programs designed to facilitate the transfer 

23 from 2-year to 4-year institutions.’’.
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•S 1793 IS 

1 SEC. 404. ELIMINATION OF WAIT-OUT PERIOD. 

2 Section 504(a) of the Higher Education Act of 1965 

3 (20 U.S.C. 1101c(a)) is amended to read as follows: 

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

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

6 5 years.’’. 

7 SEC. 405. APPLICATION PRIORITY. 

8 Section 521(d) of the Higher Education Act of 1965 

9 (as redesignated by section 401(a)(2)) is amended by 

10 striking ‘‘(from funds other than funds provided under 

11 this title)’’. 

12 TITLE V—HISTORICALLY BLACK 

13 COLLEGES AND UNIVERSITIES 

14 SEC. 501. PROFESSIONAL OR GRADUATE INSTITUTIONS. 

15 Section 326 of the Higher Education Act of 1965 (20 

16 U.S.C. 1063b) is amended—

17 (1) in subsection (a)—

18 (A) in paragraph (1), by inserting ‘‘busi19 ness administration, computer or information 

20 science, nursing and allied health,’’ after ‘‘engi21 neering,’’; and 

22 (B) in paragraph (2), by striking 

23 ‘‘$1,000,000’’ both places such term appears 

24 and inserting ‘‘$1,500,000’’; 

25 (2) in subsection (d)(2), by striking 

26 ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 
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•S 1793 IS 

1 (3) in subsection (e)—

2 (A) in paragraph (1)—

3 (i) in subparagraph (Q), by striking 

4 ‘‘and’’ after the semicolon; 

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

6 the period at the end and inserting a semi7 colon; and 

8 (iii) by adding at the end the fol9 lowing: 

10 ‘‘(S) Alabama State University qualified 

11 graduate programs; 

12 ‘‘(T) Albany State University qualified 

13 graduate programs; 

14 ‘‘(U) Alcorn State University qualified 

15 graduate programs; 

16 ‘‘(V) Bowie State University qualified 

17 graduate programs; 

18 ‘‘(W) Coppin State University qualified 

19 graduate programs; 

20 ‘‘(X) Delaware State University qualified 

21 graduate programs; 

22 ‘‘(Y) Feyetteville State University qualified 

23 graduate programs; 

24 ‘‘(Z) Fisk University qualified graduate 

25 programs; 
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•S 1793 IS 

1 ‘‘(AA) Grambling State University quali2 fied graduate programs; 

3 ‘‘(BB) Kentucky State University qualified 

4 graduate programs; 

5 ‘‘(CC) Langston University qualified grad6 uate programs; 

7 ‘‘(DD) Lincoln University (MO) qualified 

8 graduate programs; 

9 ‘‘(EE) Prairie View A&M University quali10 fied graduate programs; 

11 ‘‘(FF) South Carolina State University 

12 qualified graduate programs; 

13 ‘‘(GG) Southern University & A&M College 

14 qualified graduate programs; 

15 ‘‘(HH) University of the District of Colum16 bia qualified graduate programs; and 

17 ‘‘(II) Virginia State University qualified 

18 graduate programs.’’; and 

19 (B) in paragraph (2)—

20 (i) in subparagraph (A), by inserting 

21 ‘‘business administration, computer or in22 formation science, nursing and allied 

23 health,’’ after ‘‘physical or natural 

24 sciences,’’; and 
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•S 1793 IS 

1 (ii) in subparagraph (B), by striking 

2 ‘‘not more than 10 percent’’ and inserting 

3 ‘‘not more than 30 percent’’; 

4 (4) by striking subsection (f) and inserting the 

5 following: 

6 ‘‘(f) FUNDING RULE.—Subject to subsection (g), of 

7 the amount appropriated to carry out this section for any 

8 fiscal year—

9 ‘‘(1) the first $26,600,000 (or any lesser 

10 amount appropriated) shall be available only for the 

11 purposes of making grants to institutions or pro12 grams described in subparagraphs (A) through (P) 

13 of subsection (e)(1); 

14 ‘‘(2) any amount in excess of $26,600,000, but 

15 not in excess of $28,600,000, shall be available for 

16 the purpose of making grants to institutions or pro17 grams described in subparagraphs (Q) and (R) of 

18 subsection (e)(1); 

19 ‘‘(3) any amount in excess of $28,600,000, but 

20 not in excess of $45,600,000, shall be available for 

21 the purpose of making grants to institutions or pro22 grams described in subparagraphs (S) through (II) 

23 of subsection (e)(1); 

24 ‘‘(4) any amount in excess of $45,600,000, but 

25 not in excess of $63,100,000, shall be available for 
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•S 1793 IS 

1 the purpose of increasing the grant amounts to not 

2 more than $1,500,000 to each institution or pro3 gram described in subparagraphs (A) through (II) of 

4 subsection (e)(1); and 

5 ‘‘(5) any amount in excess of $63,100,000, 

6 shall be made available to each of the institutions or 

7 programs identified in subparagraphs (A) through 

8 (II) of subsection (e)(1) pursuant to a formula de9 veloped by the Secretary that uses the following ele10 ments: 

11 ‘‘(A) The ability of the institution to match 

12 Federal funds with non-Federal funds. 

13 ‘‘(B) The number of students enrolled in 

14 the programs for which the eligible institution 

15 received funding under this section in the pre16 vious year. 

17 ‘‘(C) The average cost of education per 

18 student, for all full-time graduate or profes19 sional students (or the equivalent) enrolled in 

20 the eligible professional or graduate school, or 

21 for doctoral students enrolled in the qualified 

22 graduate programs. 

23 ‘‘(D) The number of students in the pre24 vious year who received their first professional 

25 or doctoral degree from the programs for which
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•S 1793 IS 

1 the eligible institution received funding under 

2 this section in the previous year. 

3 ‘‘(E) The contribution, on a percent basis, 

4 of the programs for which the institution is eli5 gible to receive funds under this section to the 

6 total number of African-Americans receiving 

7 graduate or professional degrees in the profes8 sions or disciplines related to the programs for 

9 the previous year.’’; and 

10 (5) in subsection (g), by striking ‘‘paragraphs 

11 (2) and (3) of subsection (f)’’ and inserting ‘‘sub12 section (f)’’. 

13 SEC. 502. GRADUATE AND PROFESSIONAL DEGREE DEVEL14 OPMENT PROGRAM. 

15 Part B of title III of the Higher Education Act of 

16 1965 (20 U.S.C. 1060 et seq.) is amended—

17 (1) by redesignating section 327 as section 328; 

18 and 

19 (2) by inserting after section 326 the following: 

20 ‘‘SEC. 327. GRADUATE AND PROFESSIONAL DEGREE DEVEL21 OPMENT PROGRAM. 

22 ‘‘(a) GRANT AUTHORITY.—The Secretary is author23 ized to award grants to eligible historically Black colleges 

24 and universities to enable such colleges and universities 

25 to—
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•S 1793 IS 

1 ‘‘(1) develop masters, doctoral, or professional 

2 degree programs; and 

3 ‘‘(2) provide assistance, through fellowship 

4 awards, to graduate students at such colleges and 

5 universities. 

6 ‘‘(b) ELIGIBLE GRANT RECIPIENT.—Eligibility to re7 ceive grants under this section is limited to historically 

8 Black colleges and universities that are making a substan9 tial contribution to the education of African-Americans. 

10 ‘‘(c) APPLICATION.—An eligible historically Black 

11 college or university that desires to receive a grant under 

12 this section shall submit an application to the Secretary 

13 that—

14 ‘‘(1) demonstrates how the grant funds will be 

15 used to improve—

16 ‘‘(A) graduate educational opportunities 

17 for African-American and low-income students; 

18 and 

19 ‘‘(B) the financial independence of such 

20 students; 

21 ‘‘(2) provides, in the case of applications for 

22 grants in excess of $500,000, the assurances re23 quired by subsection (g) and specifies the manner in 

24 which the college or university is going to pay the 

25 non-Federal share of the cost of the application; and 
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•S 1793 IS 

1 ‘‘(3) contains such information as the Secretary 

2 may require. 

3 ‘‘(d) PRIORITY.—In awarding grants under this sec4 tion, the Secretary shall give priority consideration to 

5 those eligible historically Black colleges and universities 

6 desiring to support programs and graduate students in 

7 areas of national need or academic disciplines in which 

8 African-Americans are underrepresented. 

9 ‘‘(e) USE OF FUNDS.—An eligible historically Black 

10 college or university that receives a grant under this sec11 tion may use the grant funds for—

12 ‘‘(1) purchase, rental, or lease of equipment for 

13 educational purposes, including instructional and re14 search purposes; 

15 ‘‘(2) construction, maintenance, renovation, and 

16 improvement in classroom, library, laboratory, and 

17 other instructional facilities, including purchase or 

18 rental of telecommunications technology equipment 

19 or services; 

20 ‘‘(3) purchase of library books, periodicals, 

21 journals, microfilm, microfiche, and other edu22 cational materials, including telecommunications 

23 program materials; 

24 ‘‘(4) scholarships, fellowships, and other finan25 cial assistance for needy graduate and professional 
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•S 1793 IS 

1 students to permit the enrollment of the students in 

2 and completion of the graduate or professional de3 gree; and 

4 ‘‘(5) assistance in the establishment or mainte5 nance of an institutional endowment to facilitate fi6 nancial independence pursuant to section 331. 

7 ‘‘(f) DURATION.—Grants shall be made for a period 

8 not to exceed 5 years. 

9 ‘‘(g) FUNDING RULE.—No grant in excess of 

10 $500,000 may be made under this section unless the col11 lege or university provides assurances that 50 percent of 

12 the cost of the purposes for which the grant is made will 

13 be paid from non-Federal sources, except that no college 

14 or university shall be required to match any portion of 

15 the first $500,000 of the college or university’s award 

16 from the Secretary. 

17 ‘‘(h) TWO GRANTS PER INSTITUTION.—The Sec18 retary may award not more than 2 grants or an aggregate 

19 amount of $1,000,000 under this section in any fiscal year 

20 to any institution of higher education or university system. 

21 ‘‘(i) INSTITUTIONAL CHOICE.—The president or 

22 chancellor of the college or university may select the pro23 gram for which to seek funding. 

24 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

25 are authorized to be appropriated to carry out this section 
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•S 1793 IS 

1 $30,000,000 for fiscal year 2004 and such sums as may 

2 be necessary for each of the 5 succeeding fiscal years.’’. 

3 SEC. 503. AUTHORIZATION OF APPROPRIATIONS. 

4 (a) GRANTS TO INSTITUTIONS.—Section 323(a) of 

5 the Higher Education Act of 1965 (20 U.S.C. 1062(a)) 

6 is amended by striking ‘‘section 360(a)(2)’’ and inserting 

7 ‘‘section 399(a)(2)(C)’’. 

8 (b) AUTHORIZATION.—Section 399(a) of the Higher 

9 Education Act of 1965 (20 U.S.C. 1068h(a)) is amend10 ed—

11 (1) in paragraph (2)—

12 (A) in subparagraph (A), by striking ‘‘sec13 tion 326’’ and inserting ‘‘sections 323 and 

14 326’’; 

15 (B) in subparagraph (B), by striking 

16 ‘‘$35,000,000 for fiscal year 1999, and such 

17 sums as may be necessary for each of the 4 

18 succeeding fiscal years’’ and inserting 

19 ‘‘$75,000,000 for fiscal year 2004, and such 

20 sums as may be necessary for each of the 5 

21 succeeding fiscal years’’; and 

22 (C) by adding at the end the following: 

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

24 carry out section 323, $250,000,000 for fiscal year
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•S 1793 IS 

1 2004, and such sums as may be necessary for each 

2 of the 5 succeeding fiscal years’’; 

3 (2) in paragraph (3), by striking ‘‘$10,000,000 

4 for fiscal year 1999, and such sums as may be nec5 essary for each of the 4 succeeding fiscal years’’ and 

6 inserting ‘‘$25,000,000 for fiscal year 2004, and 

7 such sums as may be necessary for each of the 5 

8 succeeding fiscal years’’; and 

9 (3) in paragraph (5), by striking ‘‘$10,000,000 

10 for fiscal year 1999, and such sums as may be nec11 essary for each of the 4 succeeding fiscal years’’ and 

12 inserting ‘‘$20,000,000 for fiscal year 2004, and 

13 such sums as may be necessary for each of the 5 

14 succeeding fiscal years’’. 

15 SEC. 504. PATSY T. MINK FELLOWSHIP PROGRAM. 

16 Part A of title VII of the Higher Education Act of 

17 1965 (20 U.S.C. 1134 et seq.) is amended—

18 (1) by redesignating subpart 4 as subpart 5; 

19 (2) by redesignating section 731 as section 741; 

20 (3) in section 741 (as redesignated by para21 graph (2))—

22 (A) in subsection (a), by striking ‘‘and 3’’ 

23 and inserting ‘‘3, and 4’’; 

24 (B) in subsection (b), by striking ‘‘and 3’’ 

25 and inserting ‘‘3, and 4’’; and 
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1 (C) in subsection (d), by striking ‘‘or 3’’ 

2 and inserting ‘‘3, or 4’’; and 

3 (4) by inserting after subpart 3 the following: 

4 ‘‘Subpart 4—Patsy T. Mink Fellowship Program 

5 ‘‘SEC. 731. PURPOSE AND DESIGNATION. 

6 ‘‘(a) PURPOSE.—It is the purpose of this subpart to 

7 provide, through eligible institutions, a program of fellow8 ship awards to assist highly qualified minorities and 

9 women to acquire the doctoral degree, or highest possible 

10 degree available, in academic areas in which such individ11 uals are underrepresented for the purpose of enabling such 

12 individuals to enter the higher education professoriate. 

13 ‘‘(b) DESIGNATION.—Each recipient of a fellowship 

14 award from an eligible institution receiving a grant under 

15 this subpart shall be known as a ‘Patsy T. Mink Graduate 

16 Fellow’. 

17 ‘‘SEC. 732. DEFINITION OF ELIGIBLE INSTITUTION. 

18 ‘‘In this subpart, the term ‘eligible institution’ means 

19 an institution of higher education, or a consortium of such 

20 institutions, that offers a program of postbaccalaureate 

21 study leading to a graduate degree. 

22 ‘‘SEC. 733. PROGRAM AUTHORIZED. 

23 ‘‘(a) GRANTS BY SECRETARY.—

24 ‘‘(1) IN GENERAL.—The Secretary shall award 

25 grants to eligible institutions to enable such institu-
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1 tions to make fellowship awards to individuals in ac2 cordance with the provisions of this subpart. 

3 ‘‘(2) PRIORITY CONSIDERATION.—In awarding 

4 grants under this subpart, the Secretary shall con5 sider the eligible institution’s prior experience in 

6 producing doctoral degree, or highest possible degree 

7 available, holders who are minorities and women, 

8 and shall give priority consideration in making 

9 grants under this subpart to those eligible institu10 tions with a demonstrated record of producing mi11 norities and women who have earned such degrees. 

12 ‘‘(b) APPLICATIONS.—

13 ‘‘(1) IN GENERAL.—An eligible institution that 

14 desires a grant under this subpart shall submit an 

15 application to the Secretary at such time, in such 

16 manner, and containing such information as the Sec17 retary may require. 

18 ‘‘(2) APPLICATIONS MADE ON BEHALF.—

19 ‘‘(A) IN GENERAL.—The following entities 

20 may submit an application on behalf of an eligi21 ble institution: 

22 ‘‘(i) A graduate school or department 

23 of such institution. 

24 ‘‘(ii) A graduate school or department 

25 of such institution in collaboration with an 
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1 undergraduate college or university of such 

2 institution. 

3 ‘‘(iii) An organizational unit within 

4 such institution that offers a program of 

5 postbaccalaureate study leading to a grad6 uate degree, including an interdisciplinary 

7 or an interdepartmental program. 

8 ‘‘(iv) A nonprofit organization with a 

9 demonstrated record of helping minorities 

10 and women earn postbaccalaureate de11 grees. 

12 ‘‘(B) NONPROFIT ORGANIZATIONS.—Noth13 ing in this paragraph shall be construed to per14 mit the Secretary to award a grant under this 

15 subpart to an entity other than an eligible insti16 tution. 

17 ‘‘(c) SELECTION OF APPLICATIONS.—In awarding 

18 grants under subsection (a), the Secretary shall—

19 ‘‘(1) take into account the number and distribu20 tion of minority and female faculty nationally, as 

21 well as the current and projected need for highly 

22 trained individuals in all areas of the higher edu23 cation professoriate; 

24 ‘‘(2) take into account the number and distribu25 tion of minority and female faculty nationally, as 
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1 well as the present and projected need for highly 

2 trained individuals in academic career fields in which 

3 minorities and women are underrepresented in the 

4 higher education professoriate; and 

5 ‘‘(3) consider the need to prepare a large num6 ber of minorities and women generally in academic 

7 career fields of high national priority, especially in 

8 areas in which such individuals are traditionally 

9 underrepresented in college and university faculties. 

10 ‘‘(d) DISTRIBUTION AND AMOUNTS OF GRANTS.—

11 ‘‘(1) EQUITABLE DISTRIBUTION.—In awarding 

12 grants under subsection (a), the Secretary shall, to 

13 the maximum extent feasible, ensure an equitable 

14 geographic distribution of awards and an equitable 

15 distribution among public and independent eligible 

16 institutions that apply for grants under this subpart 

17 and that demonstrate an ability to achieve the pur18 pose of this subpart. 

19 ‘‘(2) SPECIAL RULE.—To the maximum extent 

20 practicable, the Secretary shall use not less than 50 

21 percent of the amount appropriated pursuant to sec22 tion 736 to award grants to the following eligible in23 stitutions: 

24 ‘‘(A) Eligible institutions that are eligible 

25 for assistance under title III or title V.
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1 ‘‘(B) Eligible institutions that are eligible 

2 institutions, as defined in section 312. 

3 ‘‘(C) Eligible institutions that are Tribal 

4 Colleges or Universities, as defined in section 

5 316. 

6 ‘‘(D) Eligible institutions that are Alaska 

7 Native-serving institutions, as defined in section 

8 317. 

9 ‘‘(E) Eligible institutions that are Native10 Hawaiian-serving institutions, as defined in sec11 tion 317. 

12 ‘‘(F) Eligible institutions that are part B 

13 institutions, as defined in section 322. 

14 ‘‘(G) Eligible institutions that are eligible 

15 institutions, as defined in section 502. 

16 ‘‘(H) Consortia of eligible institutions that 

17 are nonminority-serving institutions and eligible 

18 institutions that are minority-serving institu19 tions. 

20 ‘‘(3) ALLOCATION.—In awarding grants under 

21 this subpart, the Secretary shall allocate appropriate 

22 funds to those eligible institutions whose applications 

23 indicate an ability to significantly increase the num24 bers of minorities and women entering the higher 

25 education professoriate and that commit institu-
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1 tional resources to the attainment of the purpose of 

2 this subpart. An eligible institution that receives a 

3 grant under this subpart shall make not less than 15 

4 fellowship awards. 

5 ‘‘(4) REALLOTMENT.—If the Secretary deter6 mines that an eligible institution awarded a grant 

7 under this subpart is unable to use all of the grant 

8 funds awarded to the institution, the Secretary shall 

9 reallot, on such date during each fiscal year as the 

10 Secretary may fix, the funds that are not usable to 

11 other eligible institutions that demonstrate that such 

12 institutions can use any reallocated grant funds to 

13 make fellowship awards to individuals under this 

14 subpart. 

15 ‘‘(e) INSTITUTIONAL ALLOWANCE.—

16 ‘‘(1) IN GENERAL.—

17 ‘‘(A) NUMBER OF ALLOWANCES.—In 

18 awarding grants under this subpart, the Sec19 retary shall pay to each eligible institution 

20 awarded a grant, for each individual awarded a 

21 fellowship by such institution under this sub22 part, an institutional allowance. 

23 ‘‘(B) AMOUNT.—Except as provided in 

24 paragraph (3), an institutional allowance shall 

25 be in an amount equal to, for academic year 
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1 2005–2006 and succeeding academic years, the 

2 amount of institutional allowance made to an 

3 institution of higher education under section 

4 715. 

5 ‘‘(2) USE OF FUNDS.—Institutional allowances 

6 may be expended in the discretion of the eligible in7 stitution and may be used to provide, except as pro8 hibited under paragraph (4), academic support and 

9 career transition services for individuals awarded fel10 lowships by such institution. 

11 ‘‘(3) REDUCTION.—The institutional allowance 

12 paid under paragraph (1) shall be reduced by the 

13 amount the institution charges and collects from a 

14 fellowship recipient for tuition and other expenses as 

15 part of the recipient’s instructional program. 

16 ‘‘(4) USE FOR OVERHEAD PROHIBITED.—Funds 

17 made available pursuant to this subpart may not be 

18 used for general operational overhead of the aca19 demic department or institution receiving funds 

20 under this subpart. 

21 ‘‘SEC. 734. FELLOWSHIP RECIPIENTS. 

22 ‘‘(a) AUTHORIZATION.—An eligible institution that 

23 receives a grant under this subpart shall use the grant 

24 funds to make fellowship awards to minorities and women 
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1 who are enrolled at such institution in a doctoral degree, 

2 or highest possible degree available, program and—

3 ‘‘(1) intend to pursue a career in instruction 

4 at—

5 ‘‘(A) an institution of higher education (as 

6 defined in section 101); 

7 ‘‘(B) an institution of higher education (as 

8 defined in section 102(a)(1)); 

9 ‘‘(C) an institution of higher education 

10 outside the United States, as that term is de11 scribed in section 102(a)(2); or 

12 ‘‘(D) a proprietary institution of higher 

13 education (as defined in section 102(b)); and 

14 ‘‘(2) sign an agreement with the Secretary 

15 agreeing to, within 5 years of receiving the doctoral 

16 degree, or highest possible degree available, begin 

17 employment at an institution described in paragraph 

18 (1) for 1 year for each year of fellowship assistance 

19 received under this subpart. 

20 ‘‘(b) FAILURE TO COMPLY.—If an individual who re21 ceives a fellowship award under this subpart fails to com22 ply with the agreement signed pursuant to subsection 

23 (a)(2), then the Secretary shall do 1 or both of the fol24 lowing: 
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1 ‘‘(1) Require the individual to repay all or the 

2 applicable portion of the total fellowship amount 

3 awarded to the individual by converting the balance 

4 due to a loan at the interest rate applicable to loans 

5 made under part B of title IV. 

6 ‘‘(2) Impose a fine or penalty in an amount to 

7 be determined by the Secretary. 

8 ‘‘(c) WAIVER AND MODIFICATION.—

9 ‘‘(1) REGULATIONS.—The Secretary shall pro10 mulgate regulations setting forth criteria to be con11 sidered in granting a waiver for the service require12 ment under subsection (a). 

13 ‘‘(2) CONTENT.—The criteria under paragraph 

14 (1) shall include whether compliance with the service 

15 requirement by the fellowship recipient would be—

16 ‘‘(A) inequitable and represent a substan17 tial hardship; or 

18 ‘‘(B) deemed impossible because the indi19 vidual is permanently and totally disabled at 

20 the time of the waiver request. 

21 ‘‘(d) AMOUNT OF FELLOWSHIP AWARDS.—Fellow22 ship awards under this subpart shall consist of a stipend 

23 in an amount equal to the level of support provided to 

24 the National Science Foundation graduate fellows, except 

25 that such stipend shall be adjusted as necessary so as not
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1 to exceed the fellow’s tuition and fees or demonstrated 

2 need (as determined by the institution of higher education 

3 where the graduate student is enrolled), whichever is 

4 greater. 

5 ‘‘(e) ACADEMIC PROGRESS REQUIRED.—An indi6 vidual shall not be eligible to receive a fellowship award—

7 ‘‘(1) except during periods in which such stu8 dent is enrolled, such student is maintaining satis9 factory academic progress in, devoting essentially 

10 full time to, study or research in the pursuit of the 

11 degree for which the fellowship support was award12 ed; and 

13 ‘‘(2) if the student is engaged in gainful em14 ployment other than part-time employment involved 

15 in teaching, research, or similar activity determined 

16 by the institution to be consistent with and sup17 portive of the student’s progress toward the appro18 priate degree. 

19 ‘‘SEC. 735. RULE OF CONSTRUCTION. 

20 ‘‘Nothing in this subpart shall be construed to require 

21 an eligible institution that receives a grant under this sub22 part to—

23 ‘‘(1) grant a preference or to differentially treat 

24 any applicant for a faculty position as a result of the 
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1 institution’s participation in the program under this 

2 subpart; and 

3 ‘‘(2) hire a Patsy T. Mink Fellow who com4 pletes this program and seeks employment at such 

5 institution. 

6 ‘‘SEC. 736. AUTHORIZATION OF APPROPRIATIONS. 

7 ‘‘There is authorized to be appropriated to carry out 

8 this subpart $25,000,000 for fiscal year 2004 and such 

9 sums as may be necessary for each of the 5 succeeding 

10 fiscal years.’’. 

11 TITLE VI—RECRUITMENT OF 

12 TEACHERS TO TEACH AT 

13 TRIBAL COLLEGES OR UNI14 VERSITIES 

15 SEC. 601. LOAN REPAYMENT OR CANCELLATION FOR INDI16 VIDUALS WHO TEACH IN TRIBAL COLLEGES 

17 OR UNIVERSITIES. 

18 (a) SHORT TITLE.—This title may be cited as the 

19 ‘‘Tribal Colleges and Universities Teacher Loan Forgive20 ness Act’’. 

21 (b) PERKINS LOANS.—

22 (1) AMENDMENT.—Section 465(a) of the High23 er Education Act of 1965 (20 U.S.C. 1087ee(a)) is 

24 amended—

25 (A) in paragraph (2)—
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1 (i) in subparagraph (H), by striking 

2 ‘‘or’’ after the semicolon; 

3 (ii) in subparagraph (I), by striking 

4 the period and inserting ‘‘; or’’; and 

5 (iii) by adding at the end the fol6 lowing: 

7 ‘‘(J) as a full-time teacher at a Tribal College 

8 or University as defined in section 316(b).’’; and 

9 (B) in paragraph (3)(A)(i), by striking ‘‘or 

10 (I)’’ and inserting ‘‘(I), or (J)’’. 

11 (2) EFFECTIVE DATE.—The amendments made 

12 by paragraph (1) shall be effective for service per13 formed during academic year 1998–1999 and suc14 ceeding academic years, notwithstanding any con15 trary provision of the promissory note under which 

16 a loan under part E of title IV of the Higher Edu17 cation Act of 1965 (20 U.S.C. 1087aa et seq.) was 

18 made. 

19 (c) FFEL AND DIRECT LOANS.—Part G of title IV 

20 of the Higher Education Act of 1965 (20 U.S.C. 1088 

21 et seq.) is amended by adding at the end the following: 
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1 ‘‘SEC. 493C. LOAN REPAYMENT OR CANCELLATION FOR IN2 DIVIDUALS WHO TEACH IN TRIBAL COL3 LEGES OR UNIVERSITIES. 

4 ‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall 

5 carry out a program, through the holder of a loan, of as6 suming or canceling the obligation to repay a qualified 

7 loan amount, in accordance with subsection (b), for any 

8 new borrower on or after the date of enactment of this 

9 section, who—

10 ‘‘(1) has been employed as a full-time teacher 

11 at a Tribal College or University as defined in sec12 tion 316(b); and 

13 ‘‘(2) is not in default on a loan for which the 

14 borrower seeks repayment or cancellation. 

15 ‘‘(b) QUALIFIED LOAN AMOUNTS.—

16 ‘‘(1) PERCENTAGES.—Subject to paragraph (2), 

17 the Secretary shall assume or cancel the obligation 

18 to repay under this section—

19 ‘‘(A) 15 percent of the amount of all loans 

20 made, insured, or guaranteed after the date of 

21 enactment of this section to a student under 

22 part B or D, for the first or second year of em23 ployment described in subsection (a)(1); 

24 ‘‘(B) 20 percent of such total amount, for 

25 the third or fourth year of such employment; 

26 and 
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1 ‘‘(C) 30 percent of such total amount, for 

2 the fifth year of such employment. 

3 ‘‘(2) MAXIMUM.—The Secretary shall not repay 

4 or cancel under this section more than $15,000 in 

5 the aggregate of loans made, insured, or guaranteed 

6 under parts B and D for any student. 

7 ‘‘(3) TREATMENT OF CONSOLIDATION LOANS.—

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

9 may be a qualified loan amount for the purposes of 

10 this subsection only to the extent that such loan 

11 amount was used to repay a loan made, insured, or 

12 guaranteed under part B or D for a borrower who 

13 meets the requirements of subsection (a), as deter14 mined in accordance with regulations prescribed by 

15 the Secretary. 

16 ‘‘(c) REGULATIONS.—The Secretary is authorized to 

17 issue such regulations as may be necessary to carry out 

18 the provisions of this section. 

19 ‘‘(d) CONSTRUCTION.—Nothing in this section shall 

20 be construed to authorize any refunding of any repayment 

21 of a loan. 

22 ‘‘(e) PREVENTION OF DOUBLE BENEFITS.—No bor23 rower may, for the same service, receive a benefit under 

24 both this section and subtitle D of title I of the National 
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1 and Community Service Act of 1990 (42 U.S.C. 12571 

2 et seq.). 

3 ‘‘(f) DEFINITION.—For purposes of this section, the 

4 term ‘year’, when applied to employment as a teacher, 

5 means an academic year as defined by the Secretary.’’. 

6 SEC. 602. AMOUNTS FORGIVEN NOT TREATED AS GROSS IN7 COME. 

8 The amount of any loan that is assumed or canceled 

9 under an amendment made by this title shall not, con10 sistent with section 108(f) of the Internal Revenue Code 

11 of 1986, be treated as gross income for Federal income 

12 tax purposes.

Æ