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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2360 Introduced in Senate (IS)]

108th CONGRESS
  2d Session
                                S. 2360

To provide higher education assistance for nontraditional students, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 29, 2004

   Mrs. Clinton (for herself, Mr. Graham of Florida, and Mr. Dayton) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To provide higher education assistance for nontraditional students, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Nontraditional 
Student Success Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                     TITLE I--FINANCIAL PROVISIONS

Sec. 101. Federal Pell Grants.
Sec. 102. Income protection allowance revised tables.
Sec. 103. Exclusion of the earned income tax credit (EITC) from 
                            financial aid determinations.
Sec. 104. Nontraditional Students Demonstration Program.
                       TITLE II--SUPPORT SERVICES

Sec. 201. Strengthening institutions.
Sec. 202. Grants to increase completion by improving remedial 
                            education.
Sec. 203. Federal Trio Programs.
Sec. 204. Student support services.
Sec. 205. Educational opportunity centers.
Sec. 206. Early intervention and college awareness program.
Sec. 207. GEAR UP cohort requirement.
Sec. 208. Early intervention.
Sec. 209. Authorization of appropriations.
Sec. 210. Child Care Access Means Parents in School program.
Sec. 211. Increased awareness of financial aid availability.
Sec. 212. Hispanic-serving institutions.
Sec. 213. Fund for the improvement of postsecondary education.
Sec. 214. Amendments to special programs for students whose families 
                            are engaged in migrant and seasonal 
                            farmwork.
                  TITLE III--LIFETIME LEARNING CREDIT

Sec. 301. Improvement of lifetime learning credit.
Sec. 302. Refundability of lifetime learning credit.
Sec. 303. Advance payment of lifetime learning credit.

                     TITLE I--FINANCIAL PROVISIONS

SEC. 101. FEDERAL PELL GRANTS.

    (a) Authorization and Appropriation of Funds for Federal Pell 
Grants.--There are authorized to be appropriated and there are 
appropriated, out of any money in the Treasury not otherwise 
appropriated for the fiscal year ending September 30, 2004, for 
carrying out subpart 1 of part A of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070a), $14,515,000,000.
    (b) Authorization Amount and Maximum Federal Pell Grant.--Section 
401(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)) is 
amended--
            (1) in paragraph (2)(A), by striking clauses (i) through 
        (v) and inserting the following:
            ``(i) $7,600 for academic year 2005-2006;
            ``(ii) $8,600 for academic year 2006-2007;
            ``(iii) $9,600 for academic year 2007-2008;
            ``(iv) $10,600 for academic year 2008-2009; and
            ``(v) $11,600 for academic year 2009-2010,''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking 
                ``appropriation Act'' and inserting ``appropriation Act 
                or subparagraph (C)''; and
                    (B) by adding at the end the following:
    ``(C) The maximum Federal Pell Grant for which a student shall be 
eligible during academic year 2004-2005 shall be $4,500, less an amount 
equal to the amount determined to be the expected family contribution 
with respect to the student for that year.''.
    (c) Students With Low Family Incomes.--Section 401(b)(2) of the 
Higher Education Act of 1965 (20 U.S.C. 1070a(b)(2)) is amended further 
by adding at the end the following:
    ``(C) In the case of a student with a negative expected family 
contribution equal to or less than -$750, a positive amount 
corresponding to the negative expected family contribution amount shall 
be added to the maximum basic grant for which the student is qualified, 
except that in no case shall the amount of the basic grant exceed the 
amount permitted under paragraph (4).''.
    (d) Two Pell Grants in a Single Award Year.--Section 401(b)(6)(A) 
of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(6)(A)) is 
amended to read as follows:
    ``(6)(A) The Secretary shall allow a student to receive 2 Federal 
Pell grants during a single award year, if--
            ``(i) the student is enrolled full-time in a certificate or 
        degree program of study at an eligible institution; and
            ``(ii) the student completes course work toward completion 
        of a certificate or an associate or baccalaureate degree that 
        exceeds the requirements for a full academic year as defined by 
        the institution.''.

SEC. 102. INCOME PROTECTION ALLOWANCE REVISED TABLES.

    Section 478(b) of the Higher Education Act of 1965 (20 U.S.C. 
1087rr(b)) is amended to read as follows:
    ``(b) Income Protection Allowance.--
            ``(1) Revised tables.--For each academic year after 
        academic year 1993-1994, the Secretary shall publish in the 
Federal Register a revised table of income protection allowances for 
the purpose of sections 475(c)(4) and 477(b)(4). The revised table for 
section 475(c)(4) shall be developed by increasing each of the dollar 
amounts contained in the table in such section by a percentage equal to 
the estimated percentage increase in the Consumer Price Index (as 
determined by the Secretary) between December 1992 and the December 
next preceding the beginning of such academic year. The revised table 
for section 477(b)(4) shall be developed by using a 3-year average of 
the median expenses for a family of 4 based on the Consumer Expenditure 
Survey data, adjusted for current dollars, calculated for the lower 
living level. The results for both tables shall be rounded to the 
nearest $10.
            ``(2) Revised amounts.--For each academic year after 
        academic year 2005-2006, the Secretary shall publish in the 
        Federal Register a revised income protection allowance for the 
        purpose of section 476(b)(1)(A)(iv)(I). Such revised allowance 
        shall be developed by increasing the dollar amount contained in 
        such section by a percentage equal to the estimated percentage 
        increase in the Consumer Expenditure Survey (as determined by 
        the Secretary) between December 2005 and the December next 
        preceding the beginning of such academic year, and rounding the 
        result to the nearest $10.''.

SEC. 103. EXCLUSION OF THE EARNED INCOME TAX CREDIT (EITC) FROM 
              FINANCIAL AID DETERMINATIONS.

    Section 480(b) of the Higher Education Act of 1965 (20 U.S.C. 
1087vv(b)) is amended--
            (1) by striking paragraph (8); and
            (2) by redesignating paragraphs (9) through (14) as 
        paragraphs (8) through (13), respectively.

SEC. 104. NONTRADITIONAL STUDENTS DEMONSTRATION PROGRAM.

    Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.) is amended by adding at the end the following:

        ``PART I--NONTRADITIONAL STUDENTS DEMONSTRATION PROGRAM

``SEC. 499. NONTRADITIONAL STUDENTS DEMONSTRATION PROGRAM.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to allow demonstration programs that are strictly 
        monitored by the Department to test the effectiveness of 
        providing expanded financial assistance under this title to 
        less than half-time students for not more than 3 terms over the 
        duration of the students' course of study, and to students in 
        compressed, modular, or other alternative schedules;
            ``(2) to increase graduation rates of nontraditional 
        students by enabling the nontraditional students to stay 
        continuously enrolled during periods when the nontraditional 
        students must temporarily attend college less than half-time; 
        and
            ``(3) to increase graduation rates of nontraditional 
        students by enabling the nontraditional students to enroll in 
        programs with compressed, modular, or other alternative 
        schedules that allow the nontraditional students to better 
        balance work, family, and school.
    ``(b) Demonstration Program Authorized.--
            ``(1) In general.--In accordance with the provisions of 
        subsection (d), the Secretary is authorized to select 
        institutions of higher education, systems of institutions of 
        higher education, or consortia of institutions of higher 
        education for voluntary participation in the Nontraditional 
        Students Demonstration Program. Such program shall provide 
        participating institutions, consortia, or systems with waivers, 
        as described in paragraph (2), that provide the ability to 
        offer expanded financial assistance--
                    ``(A) to less than half-time students who have 
                completed not less than 1 term of coursework, for not 
                more than 3 terms over the duration of the students' 
                course of study; and
                    ``(B) to students enrolled in programs with 
                compressed, modular, or other alternative schedules.
            ``(2) Waivers.--
                    ``(A) Less than half-time students.--The Secretary 
                is authorized to waive, for any institution of higher 
                education, system of institutions of higher education, 
                or consortium of institutions of higher education 
                participating in the Nontraditional Students 
                Demonstration Program, the requirements of section 472 
                that relate to limiting the definition of the cost of 
                attendance for less than half-time students, especially 
                paragraphs (2) and (4) of such section, with the goal 
                of allowing the institution, system, or consortium to 
                use the same definition of the costs of attendance for 
                less than half-time students as is used for students 
                attending at least half-time.
                    ``(B) Compressed, modular, or other flexible 
                schedules.--The Secretary is authorized to waive for 
                any institution of higher education, system of 
                institutions of higher education, or consortium of 
                institutions of higher education participating in the 
                Nontraditional Students Demonstration Program, the 
                requirements of subsection (a) or (b)(1) of section 
                481, except that no program shall be considered an 
                eligible program under section 481 unless the program--
                            ``(i) offers at least 300 clock hours of 
                        instruction, 8 semester hours, or 12 quarter 
                        hours, offered during a minimum of 10 weeks; 
                        and
                            ``(ii) is articulated with a certificate or 
                        degree program of not less than 1 year in 
                        length.
            ``(3) Eligible applicants.--
                    ``(A) Eligible institutions.--Except as provided in 
                subparagraph (B), an institution of higher education, a 
                system of institutions of higher education, or a 
                consortium of institutions of higher education shall be 
                eligible to participate in the demonstration program 
                authorized under this section only if the institution, 
                each institution of higher education in the system, or 
each institution of higher education participating in the consortium, 
respectively--
                            ``(i) is eligible to participate in 
                        programs under this title; and
                            ``(ii) provides a program for which the 
                        institution of higher education awards an 
                        associate or bachelor's degree.
                    ``(B) Prohibition.--An institution of higher 
                education described in section 102(a)(1)(C) shall not 
                be eligible to participate in the demonstration program 
                authorized under this section.
    ``(c) Application.--
            ``(1) In general.--Each institution, system, or consortium 
        desiring to participate in a demonstration program under this 
        section shall submit an application to the Secretary at such 
        time and in such manner as the Secretary may require. An 
        institution, system, or consortium may apply for a waiver of a 
        provision described in subsection (b)(2) (A) or (B), or both.
            ``(2) Contents.--Each such application shall include--
                    ``(A) a description of programs that have 
                characteristics known to be effective for 
                nontraditional students, which will be carried out in 
                support of the waiver, including programs related to 
                student financial aid counseling, academic support 
                services, study skills courses, remedial courses, 
                English as a Second Language courses, individual 
                mentoring, skills assessment, addressing child care 
                needs, and creating flexible course schedules;
                    ``(B) a description of the statutory and regulatory 
                requirements described in subsection (b)(2) for which a 
                waiver is sought and the reasons for which the waiver 
                is sought;
                    ``(C) in the case of an institution, a system, or a 
                consortium applying for a waiver of a provision 
                described in subsection (b)(2)(A), a description of the 
                less than half-time students to whom such expanded 
                financial assistance will be offered;
                    ``(D) in the case of an institution, a system, or a 
                consortium applying for a waiver of a provision 
                described in subsection (b)(2)(B), a description of the 
                programs with compressed, modular, or other alternative 
                schedules in which students in the demonstration 
                program will be enrolled;
                    ``(E) an assurance that the institution, system, or 
                consortium will offer full cooperation with the ongoing 
                evaluations of the demonstration program provided for 
                in this section; and
                    ``(F) such other information as the Secretary may 
                require.
    ``(d) Selection.--
            ``(1) In general.--For the first 2 years of the 
        demonstration program the Secretary is authorized to select for 
        participation in the program not more than an aggregate of 50 
        institutions of higher education, systems of institutions of 
        higher education, or consortia of institutions of higher 
        education. For the third year of the demonstration program 
        authorized under this section, not more than an aggregate of 70 
        institutions, systems, or consortia, may participate in the 
        demonstration program, if the Secretary determines that such 
        expansion is warranted based on the evaluations and oversight 
        conducted in accordance with subsections (f) and (g).
            ``(2) Considerations.--In selecting institutions, systems, 
        or consortia to participate in the demonstration program in the 
        first or succeeding years of the demonstration program, the 
        Secretary shall take into account--
                    ``(A) the number and quality of applications 
                received;
                    ``(B) the Department's capacity to oversee and 
                monitor the participation of each institution, system, 
                or consortium;
                    ``(C) an institution's, system's, or consortium's--
                            ``(i) financial responsibility;
                            ``(ii) administrative capability;
                            ``(iii) number of matriculated students 
                        enrolled less than half-time, or program or 
                        programs to be offered with compressed, 
                        modular, or other alternative schedules; and
                            ``(iv) ability to offer programs that have 
                        characteristics known to be effective for 
                        nontraditional students, including programs 
                        that provide student financial aid counseling, 
                        academic support services, study skills 
                        courses, remedial courses, English as a Second 
                        Language courses, individual mentoring, and 
                        skills assessment, programs that address child 
                        care needs, and programs that create flexible 
                        course schedules; and
                    ``(D) ensuring the participation of a diverse group 
                of institutions, systems, and consortia with respect to 
                size, mission, and geographic distribution.
    ``(e) Notification.--The Secretary shall make available to the 
public and to the Committee on Health, Education, Labor, and Pensions 
of the Senate and the Committee on Education and the Workforce of the 
House of Representatives a list of institutions, systems, or consortia 
selected to participate in the demonstration program authorized by this 
section. Such notice shall include a listing of the specific statutory 
and regulatory requirements waived for each institution, system, or 
consortium and a description of the students served or the types of 
alternative schedule courses offered.
    ``(f) Evaluations and Reports.--
            ``(1) Evaluations.--The Secretary shall evaluate the 
        demonstration program authorized under this section on an 
        annual basis. Such evaluations specifically shall review--
                    ``(A) the extent to which each institution, system, 
                or consortium participating in the demonstration 
                program has met the goals set forth in its application 
                to the Secretary, including the measures of program 
                quality assurance;
                    ``(B) the number and types of students 
                participating in the less than half-time demonstration 
                programs and in the alternative schedule programs, 
                including the progress of participating students toward 
                recognized certificates or degrees and the extent to 
                which participation in such programs increased;
                    ``(C) issues related to student financial 
                assistance for less than half-time enrollment;
                    ``(D) issues related to student financial 
                assistance for students in compressed, modular, or 
                other alternative schedule programs; and
                    ``(E) the extent to which persistence or completion 
                increased or decreased for students in the 
                demonstration program as compared to a comparable group 
                of students.
            ``(2) Reports.--Not later than 30 months after the first 
        waiver is authorized under this section, the Secretary shall 
        report to the Committee on Health, Education, Labor, and 
        Pensions of the Senate and the Committee on Education and the 
        Workforce of the House of Representatives with respect to--
                    ``(A) the evaluations of the demonstration program 
                authorized under this section; and
                    ``(B) any proposed statutory changes designed to 
                enhance persistence and completion for students.
    ``(g) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a continuing 
basis--
            ``(1) ensure the compliance of institutions, systems, and 
        consortia participating in the demonstration program with the 
        requirements of this title (other than the sections and 
        regulations that are waived under subsection (b)(2)); and
            ``(2) provide technical assistance.''.

                       TITLE II--SUPPORT SERVICES

SEC. 201. STRENGTHENING INSTITUTIONS.

    Section 311(c) of the Higher Education Act of 1965 (20 U.S.C. 
1057(c)) is amended--
            (1) by redesignating paragraph (12) as paragraph (13); and
            (2) by inserting after paragraph (11) the following:
            ``(12) The introduction of reforms in remedial education, 
        including English language instruction, to customize remedial 
        courses to student goals and help students move rapidly from 
        remedial courses into core courses and through program 
        completion.''.

SEC. 202. GRANTS TO INCREASE COMPLETION BY IMPROVING REMEDIAL 
              EDUCATION.

    Part A of title III of the Higher Education Act of 1965 (20 U.S.C. 
1057 et seq.) is amended by adding at the end the following:

``SEC. 318. GRANTS TO INCREASE COMPLETION BY IMPROVING REMEDIAL 
              EDUCATION.

    ``(a) Authorization of Program.--From amounts appropriated under 
subsection (k), the Secretary shall award grants, on a competitive 
basis, to eligible institutions for the purposes of improving remedial 
education, including English language instruction, to customize 
remedial courses to student goals and help students move rapidly from 
remedial courses into core program courses and through program 
completion.
    ``(b) Definition of Eligible Institution.--In this section, the 
term `eligible institution' means an institution of higher education 
(as defined in section 101(a)) in which not less than 35 percent of the 
institution's entering first-year students are enrolled in remedial 
courses to improve reading, writing, or mathematics.
    ``(c) Application.--An eligible institution seeking a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and containing such information as the Secretary may 
require.
    ``(d) Priority for Replication of Proven Practices.--The Secretary 
shall give priority to applications that propose to replicate practices 
that have proven effective with adults.
    ``(e) Peer Review.--The Secretary shall convene a peer review 
process to review applications for grants under this section and to 
make recommendations to the Secretary regarding the selection of 
grantees.
    ``(f) Mandatory Activity.--An eligible institution that receives a 
grant under this section shall use the grant funds to create bridge 
programs that customize remedial adult education, English as a Second 
Language, or remedial education curricula to the content of the 
certificate or degree programs or clusters of programs in which 
remedial education students enroll.
    ``(g) Permissible Activities.--An eligible institution that 
receives a grant under this section may use the grant funds to carry 
out the following:
            ``(1) Designing and implementing innovative ways to improve 
        retention in and completion of remedial education courses, such 
        as enrolling students in cohorts, providing counseling, and 
        giving small, material incentives for attendance and 
        performance.
            ``(2) Redesignating class schedules to meet the needs of 
        working adults, through modular, compressed, repeated, or other 
        alternative schedules.
            ``(3) Improving the quality of teaching in remedial courses 
        through professional development, reclassification of such 
        teaching positions, or other means the eligible institution 
        determines appropriate.
            ``(4) Any other activities the eligible institution and the 
        Secretary determine will promote retention of and completion by 
        students attending eligible institutions.
    ``(h) Grant Period.--Grants made under this section shall be for a 
period of not less than 36 months and not more than 60 months.
    ``(i) Technical Assistance.--The Secretary shall enter into a 
contract with a private entity to provide such technical assistance to 
grantees under this section as the Secretary determines appropriate.
    ``(j) Evaluation.--The Secretary shall conduct an evaluation of 
program impacts under the demonstration program, and shall disseminate 
to the public the findings from the evaluation and information on best 
practices. The Secretary is encouraged to partner with other funders, 
such as private foundations, to allow for use of a random assignment 
evaluation in at least one of the demonstration sites.
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for fiscal year 2005 
and each of the 5 succeeding fiscal years, of which an aggregate of not 
more than 5 percent may be used to carry out subsections (i) and 
(j).''.

SEC. 203. FEDERAL TRIO PROGRAMS.

    Section 402A of the Higher Education Act of 1965 (20 U.S.C. 1070a-
11) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``$170,000'' and inserting ``$190,000'';
                            (ii) in subparagraph (B), by striking 
                        ``$180,000'' and inserting ``$200,000''; and
                            (iii) in subparagraph (C), by striking 
                        ``$190,000'' and inserting ``$220,000''; and
                    (B) by adding at the end the following:
            ``(4) Increases.--
                    ``(A) In general.--The amount of any funding 
                increase described in subparagraph (B) shall be used in 
                part to help first year students by assigning 
                counselors to the students so that there is consistency 
                and continuity in the academic and career advice the 
                students receive.
                    ``(B) Funding increases.--The funding increase 
                referred to in subparagraph (A) is--
                            ``(i) in the case of a program authorized 
                        by section 402D, the amount by which the 
                        individual grant exceeds $170,000; and
                            ``(ii) in the case of a program authorized 
                        by section 402F, the amount by which the 
                        individual grant exceeds $180,000.''; and
            (2) in subsection (f), by striking the first sentence and 
        inserting the following: ``For the purpose of making grants and 
        contracts under this chapter, there are authorized to be 
        appropriated $1,250,000,000 for fiscal year 2005 and such sums 
        as may be necessary for each of the 5 succeeding fiscal 
        years.''.

SEC. 204. STUDENT SUPPORT SERVICES.

    Section 402D(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 
1070a-14(b)(2)) is amended to read as follows:
            ``(2) consistent, individualized personal, career, and 
        academic counseling provided by assigned counselors;''.

SEC. 205. EDUCATIONAL OPPORTUNITY CENTERS.

    Section 402F(b)(6) of the Higher Education Act of 1965 (20 U.S.C. 
1070a-16(b)(6)) is amended to read as follows:
            ``(6) consistent, individualized personal, career, and 
        academic counseling provided by an assigned counselor during 
        the admissions process that may be continued throughout 
        students' undergraduate enrollment;''.

SEC. 206. EARLY INTERVENTION AND COLLEGE AWARENESS PROGRAM.

    Section 404A(b) of the Higher Education Act of 1965 (20 U.S.C. 
1070a-21(b)) is amended--
            (1) in paragraph (1), by inserting ``6 year'' after ``shall 
        make'';
            (2) in paragraph (2), by amending subparagraph (B) to read 
        as follows:
                    ``(B) ensure that students served under this 
                chapter on the day before the date of enactment of the 
                Nontraditional Student Success Act continue to receive 
                assistance through the completion of secondary school 
                and at least through the first year of attendance at a 
                postsecondary education institution.''; and
            (3) by adding at the end the following:
            ``(3) Current grantees.--An eligible entity that has 
        received an award under this section, has performed 
        successfully, and still has need for an award may apply for an 
        additional award under this section.''.

SEC. 207. GEAR UP COHORT REQUIREMENT.

    Section 404B(g)(1)(B) of the Higher Education Act of 1965 (20 
U.S.C. 1070a-22(g)(1)(B)) is amended to read as follows:
                    ``(B) ensure that the services are provided through 
                the 12th grade and through the first year of attendance 
                at a postsecondary education institution to students in 
                the participating grade level.''.

SEC. 208. EARLY INTERVENTION.

    Section 404D of the Higher Education Act of 1965 (20 U.S.C. 1070a-
24) is amended--
            (1) in subsection (b)(2)(A), by amending the matter 
        preceding clause (i) to read as follows:
                    ``(A) Providing eligible students in preschool 
                through grade 12 and through the first year of 
                attendance at a postsecondary education institution 
                with a continuing system of mentoring and advising 
                that--''; and
            (2) in subsection (c), by amending the matter preceding 
        paragraph (1) to read as follows:
    ``(c) Priority Students.--For eligible entities not using a cohort 
approach, the eligible entity shall treat as priority students any 
student in the preschool through grade 12 and through the first year of 
attendance at a postsecondary education institution who is eligible--
''.

SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

    Section 404H of the Higher Education Act of 1965 (20 U.S.C. 1070a-
28) is amended by striking ``$200,000,000 for fiscal year 1999 and such 
sums as may be necessary for each of the 4 succeeding fiscal years'' 
and inserting ``$500,000,000 for fiscal year 2005 and such sums as may 
be necessary for each of the 5 succeeding fiscal years''.

SEC. 210. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL PROGRAM.

    Section 419N(g) of the Higher Education Act of 1965 (20 U.S.C. 
1070e(g)) is amended by striking ``$45,000,000 for fiscal year 1999'' 
and inserting ``$75,000,000 for fiscal year 2005''.

SEC. 211. INCREASED AWARENESS OF FINANCIAL AID AVAILABILITY.

    Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.) is amended by adding at the end the following:

``SEC. 493C. INCREASED AWARENESS OF FINANCIAL AID AVAILABILITY.

    ``The Secretary, in consultation with the Secretary of Commerce, 
the Secretary of Health and Human Services, and the Secretary of Labor, 
shall establish a website and brochures for providing outreach about 
financial aid and education tax credits. The outreach shall target 
employers, one-stop centers, Head Start centers, and other locations 
the Secretary of Education determines appropriate.''.

SEC. 212. HISPANIC-SERVING INSTITUTIONS.

    Section 503(b) of the Higher Education Act of 1965 (20 U.S.C. 
1101b(b)) is amended--
            (1) by redesignating paragraph (14) as paragraph (15); and
            (2) by inserting after paragraph (13) the following:
            ``(14) The introduction of reforms in remedial education, 
        including English language instruction, to customize remedial 
        courses to student goals and help students move rapidly from 
        remedial courses into core courses and through program 
        completion.''.

SEC. 213. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

    Section 741(a) of the Higher Education Act of 1965 (20 U.S.C. 
1138(a)) is amended--
            (1) in paragraph (7), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (8), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(9) the introduction of reforms in remedial education, 
        including English language instruction, to customize remedial 
        courses to student goals and help students move rapidly from 
        remedial courses into core courses and through program 
        completion.''.

SEC. 214. AMENDMENTS TO SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES 
              ARE ENGAGED IN MIGRANT AND SEASONAL FARMWORK.

    Section 418A of the Higher Education Act of 1965 (20 U.S.C. 1070d-
2) is amended--
            (1) in subsection (b)(8), by inserting ``such as childcare 
        and transportation,'' after ``supportive services,''; and
            (2) in subsection (h)--
                    (A) in paragraph (1), by striking ``$15,000,000 for 
                fiscal year 1999 and such sums as may be necessary for 
                each of the 4 succeeding fiscal years'' and inserting 
                ``$75,000,000 for fiscal year 2005 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''; and
                    (B) in paragraph (2), by striking ``$5,000,000 for 
                fiscal year 1999 and such sums as may be necessary for 
                each of the 4 succeeding fiscal years'' and inserting 
                ``$75,000,000 for fiscal year 2005 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''.

                  TITLE III--LIFETIME LEARNING CREDIT

SEC. 301. IMPROVEMENT OF LIFETIME LEARNING CREDIT.

    (a) In General.--
            (1) Increase in amount.--Section 25A(c)(1) of the Internal 
        Revenue Code of 1986 (relating to lifetime learning credit) is 
        amended--
                    (A) by striking ``20 percent'' and inserting ``50 
                percent'',
                    (B) by striking ``qualified tuition and related 
                expenses'' and inserting ``qualified higher education 
                expenses'', and
                    (C) by striking ``$10,000 ($5,000 in the case of 
                taxable years beginning before January 1, 2003)'' and 
                inserting ``$4,000''.
            (2) Qualified higher education expenses.--Section 25A(f) of 
        such Code (relating to definitions) is amended by inserting at 
        the end the following new paragraph:
            ``(3) Qualified higher education expenses.--The term 
        `qualified higher education expenses' means, with respect to 
        any individual described in clause (i), (ii), or (iii) of 
        paragraph (1)(A)--
                    ``(A) tuition, books, supplies, and equipment 
                required for the enrollment or attendance at an 
                eligible educational institution,
                    ``(B) in the case of an individual with special 
                needs, expenses for special needs services which are 
                incurred in connection with such enrollment or 
                attendance,
                    ``(C) expenses for child care which are incurred in 
                connection with such enrollment or attendance, and
                    ``(D) expenses for food, shelter, and other living 
                expenses which are incurred during the period of such 
                enrollment or attendance.
        With respect to expenses described in subparagraph (D), only 
        the first $250 of such expenses for any month shall be taken 
        into account.''.
            (3) Conforming amendments.--Paragraphs (1), (2), (3), and 
        (4) of section 25A(g) of such Code are each amended by 
        inserting ``and qualified higher education expenses'' after 
        ``qualified tuition and related expenses'' each place it 
        appears.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 302. REFUNDABILITY OF LIFETIME LEARNING CREDIT.

    (a) Refundable Credit.--
            (1) In general.--Section 25A of the Internal Revenue Code 
        of 1986 is amended by redesignating subsection (i) as 
        subsection (j) and by inserting after subsection (h) the 
        following new subsection:
    ``(i) Portion of Credit Refundable.--
            ``(1) In general.--The aggregate credits allowed to a 
        taxpayer under subpart C shall be increased by the amount of 
        the credit allowed under this section by reason of subsection 
        (a)(2) without regard to this subsection and the limitation 
        under section 26(a).
            ``(2) No double benefit.--The amount of the credit allowed 
        under this subsection shall not be treated as a credit allowed 
        under this subpart and shall reduce the amount of the credit 
        otherwise allowable under subsection (a) without regard to 
        section 26(a).''.
            (2) Conforming amendment.--Paragraph (2) of section 1324(b) 
        of title 31, United States Code, is amended by inserting before 
        the period ``or from section 25A(i) of such Code''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 303. ADVANCE PAYMENT OF LIFETIME LEARNING CREDIT.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by redesignating 
section 7528 as section 7529 and inserting after section 7527 the 
following new section:

``SEC. 7528. ADVANCE PAYMENT OF LIFETIME LEARNING CREDIT.

    ``(a) General Rule.--Not later than August 1, 2004, the Secretary 
shall establish a program for making payments on behalf of certified 
individuals to eligible educational institutions.
    ``(b) Limitation on Advance Payments During any Taxable Year.--The 
Secretary may make payments under subsection (a) only to the extent 
that the total amount of such payments made on behalf of any individual 
during the taxable year does not exceed an amount equal to 50 percent 
of so much of the qualified higher education expenses paid with respect 
to such individual as does not exceed $4,000 for such year. For 
purposes of this section, qualified higher education expenses taken 
into account with respect to any individual shall be reduced--
            ``(1) by the amount of qualified tuition and related 
        expenses taken into account under section 25A(b) (if any), and
            ``(2) under rules similar to the rules under section 
        25A(g)(2).
    ``(c) Certified Individual.--For purposes of this section, the term 
`certified individual' means any individual for whom a qualified 
education costs credit eligibility certificate is in effect.
    ``(d) Qualified Education Costs Credit Eligibility Certificate.--
For purposes of this section, the term `qualified education costs 
credit eligibility certificate' means a written statement that an 
individual has incurred costs which are qualified higher education 
expenses.
    ``(e) Other Definitions and Special Rules.--
            ``(1) Definitions.--Any term used in this section which is 
        also used in section 25A shall have the meaning given such term 
        in section 25A.
            ``(2) Rules.--Except as otherwise provided in this section, 
        payments made under subsection (a) shall be subject to rules 
        similar to the rules of section 25A.''.
    (b) Coordination of Lifetime Learning Credit With Advanced 
Payment.--Section 25A of the Internal Revenue Code of 1986, as amended 
by section 2, is amended by redesignating subsection (j) as subsection 
(k) and by inserting after subsection (i) the following new subsection:
    ``(j) Coordination With Advance Payment.--
            ``(1) Recapture of excess advance payments.--
                    ``(A) In general.--If any payment is made to an 
                eligible educational institution on behalf of an 
                individual under section 7528 during any calendar year, 
                then the tax imposed by this chapter on the applicable 
                taxpayer for the last taxable year beginning in such 
                calendar year shall be increased by the aggregate 
                amount of such payments.
                    ``(B) Applicable taxpayer.--For purposes of 
                subparagraph (A), the applicable taxpayer is--
                            ``(i) such individual, or
                            ``(ii) in the case a taxpayer who is 
                        allowed a deduction with respect to such 
                        individual under section 151(c), such taxpayer.
            ``(2) Reconciliation of payments advanced and credit 
        allowed.--Any increase in tax under paragraph (1) shall not be 
        treated as tax imposed by this chapter for purposes of 
        determining the amount of any credit (other than the credit 
        allowed by subsection (a)) allowable under this part and 
        subpart C.''.
    (c) Disclosure of Return Information for Purposes of Carrying Out a 
Program for Advance Payment of Lifetime Learning Credit.--
            (1) In general.--Subsection (l) of section 6103 of the 
        Internal Revenue Code of 1986 (relating to disclosure of 
        returns and return information for purposes other than tax 
        administration) is amended by adding at the end the following 
        new paragraph:
            ``(21) Disclosure of return information for purposes of 
        carrying out a program for advance payment of lifetime learning 
        credit.--The Secretary may disclose to educational institutions 
        for any certified individual (as defined in section 7528(c)) 
        return information with respect to such certified individual 
        only to the extent necessary to carry out the program 
        established by section 7528 (relating to advance payment of 
        Lifetime Learning credit).''.
            (2) Procedures and recordkeeping related to disclosures.--
        Subsection (p) of such section is amended--
                    (A) in paragraph (3)(A) by striking ``or (18)'' and 
                inserting ``(18), or (21)'', and
                    (B) in paragraph (4) by striking ``or (20)'' and 
                inserting ``(20), or (21)'' each place it appears.
            (3) Unauthorized inspection of returns or return 
        information.--Section 7213A(a)(1)(B) of such Code is amended by 
        striking ``(l)(18) or (n)'' and inserting ``(l)(18), (l)(19), 
        or (n)''.
    (d) Information Reporting.--
            (1) In general.--Subpart B of part III of subchapter A of 
        chapter 61 of the Internal Revenue Code of 1986 (relating to 
        information concerning transactions with other persons) is 
        amended by inserting after section 6050S the following new 
        section:

``SEC. 6050T. RETURNS RELATING TO LIFETIME LEARNING CREDIT.

    ``(a) Requirement of Reporting.--Every person who is entitled to 
receive payments for any month of any calendar year under section 7528 
(relating to advance payment of Lifetime Learning credit) with respect 
to any certified individual (as defined in section 7528(c)) shall, at 
such time as the Secretary may prescribe, make the return described in 
subsection (b) with respect to each such individual.
    ``(b) Form and Manner of Returns.--A return is described in this 
subsection if such return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains--
                    ``(A) the name, address, and TIN of each individual 
                referred to in subsection (a),
                    ``(B) the amount entitled to be received for each 
                year with respect to such individual under section 
                7528, and
                    ``(C) such other information as the Secretary may 
                prescribe.
    ``(c) Statements To Be Furnished to Individuals With Respect to 
Whom Information Is Required.--Every person required to make a return 
under subsection (a) shall furnish to each individual whose name is 
required to be set forth in such return a written statement showing--
            ``(1) the name and address of the person required to make 
        such return and the phone number of the information contact for 
        such person, and
            ``(2) the information required to be shown on the return 
        with respect to such individual.
The written statement required under the preceding sentence shall be 
furnished on or before January 31 of the year following the calendar 
year for which the return under subsection (a) is required to be 
made.''.
            (2) Assessable penalties.--
                    (A) Subparagraph (B) of section 6724(d)(1) of such 
                Code (relating to definitions) is amended by 
                redesignating clauses (xii) through (xviii) as clauses 
                (xiii) through (xiv), respectively, and by inserting 
                after clause (xi) the following new clause:
                            ``(xii) section 6050U (relating to returns 
                        relating to Lifetime Learning credit),''.
                    (B) Paragraph (2) of section 6724(d) of such Code 
                is amended by striking ``or'' at the end of 
                subparagraph (AA), by striking the period at the end of 
                subparagraph (BB) and inserting ``, or'', and by adding 
                after subparagraph (BB) the following new subparagraph:
                    ``(CC) section 6050U (relating to returns relating 
                to Lifetime Learning credit).''.
    (e) Clerical Amendments.--
            (1) Advance payment.--The table of sections for chapter 77 
        of the Internal Revenue Code of 1986 is amended by adding at 
        the end the following new item:

                              ``Sec. 7528. Advance payment of Lifetime 
                                        Learning credit.''.
            (2) Information reporting.--The table of sections for 
        subpart B of part III of subchapter A of chapter 61 of such 
        Code is amended by inserting after the item relating to section 
        6050S the following new item:

                              ``Sec. 6050T. Returns relating to 
                                        Lifetime Learning credit.''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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