I 

108TH CONGRESS 

2D SESSION H. R. 4283

To amend and extend the Higher Education Act of 1965. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 5, 2004

Mr. BOEHNER (for himself and Mr. MCKEON) introduced the following bill; 

which was referred to the Committee on Education and the Workforce 

A BILL

To amend and extend the Higher Education Act of 1965.

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘College Access and Opportunity Act of 2004’’. 

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents. 

Sec. 2. References; effective date. 

TITLE I—GENERAL PROVISIONS 

Sec. 101. Definition of institution of higher education. 

‘‘Sec. 101. Definition of institution of higher education. 

‘‘Sec. 102. Institutions outside the United States. 

‘‘Sec. 123. Restrictions on funds for for-profit schools. 

Sec. 102. New borrower definition. 

Sec. 103. Student speech and association rights. 
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Sec. 104. Extension of National Advisory Committee on Institutional Quality 

and Integrity. 

Sec. 105. Alcohol and drug abuse prevention. 

Sec. 106. Prior rights and obligations. 

Sec. 107. Consumer information and public accountability in higher education. 

‘‘Sec. 131. Consumer information and public accountability in higher education. 

Sec. 108. Performance-based organization. 

TITLE II—TEACHER PREPARATION 

Sec. 201. Sense of the House of Representatives. 

TITLE III—INSTITUTIONAL AID 

Sec. 301. Title III grants for American Indian Tribally Controlled Colleges and 

Universities. 

Sec. 302. Alaska Native and Native Hawaiian-serving institutions. 

Sec. 303. Grants to part B institutions. 

Sec. 304. Technical amendments. 

Sec. 305. Title III authorizations. 

TITLE IV—STUDENT ASSISTANCE 

PART A—GRANTS TO STUDENTS

Sec. 401. Pell Grants. 

‘‘Sec. 401A. Pell Grants Plus: achievement grants for State scholars. 

Sec. 402. TRIO programs. 

Sec. 403. GEARUP. 

Sec. 404. Federal Supplemental Educational Opportunity Grants. 

Sec. 405. LEAP. 

Sec. 406. HEP/CAMP program. 

Sec. 407. Byrd Scholarship. 

Sec. 408. Child care access. 

Sec. 409. Learning anytime anywhere partnerships. 

Sec. 410. Technical amendments. 

PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM

Sec. 421. Reauthorization of Federal Family Education Loan Program. 

Sec. 422. Loan limits. 

Sec. 423. Interest rates and special allowances. 

Sec. 424. Additional loan terms and conditions. 

Sec. 425. Consolidation loan changes. 

Sec. 426. Unsubsidized Stafford loans. 

Sec. 427. Teacher recruitment and retention. 

Sec. 428. Additional administrative provisions. 

PART C—FEDERAL WORK-STUDY PROGRAMS

Sec. 441. Authorization of appropriations. 

Sec. 442. Community service. 

Sec. 443. Allocation of funds. 

Sec. 444. Books and supplies. 

Sec. 445. Job location and development. 

Sec. 446. Work colleges. 
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PART D—FEDERAL DIRECT LOAN PROGRAM

Sec. 451. Reauthorization of the Direct Loan Program. 

PART E—FEDERAL PERKINS LOAN PROGRAM

Sec. 461. Reauthorization of program. 

Sec. 462. Loan terms and conditions. 

Sec. 463. Loan cancellation. 

Sec. 464. Technical amendments. 

PART F—NEED ANALYSIS

Sec. 471. Simplified needs test improvements. 

Sec. 472. Additional need analysis amendments. 

PART G—GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL

ASSISTANCE

Sec. 481. Definition of academic year. 

Sec. 482. Distance education. 

Sec. 483. Expanding information dissemination regarding eligibility for Pell 

Grants. 

Sec. 484. Student eligibility. 

Sec. 485. Institutional refunds. 

Sec. 486. Institutional and financial assistance information for students. 

Sec. 487. College access initiative. 

‘‘Sec. 485D. College access initiative. 

Sec. 488. Distance education demonstration program. 

Sec. 489. College affordability demonstration program. 

‘‘Sec. 486A. College affordability demonstration program. 

Sec. 490. Program participation agreements. 

Sec. 491. Additional technical and conforming amendments. 

PART H—PROGRAM INTEGRITY

Sec. 495. Accreditation. 

TITLE V—DEVELOPING INSTITUTIONS 

Sec. 501. Definitional changes. 

Sec. 502. Assurance of enrollment of needy students. 

Sec. 503. Additional amendments. 

Sec. 504. Title V authorization. 

TITLE VI—TITLE VI AMENDMENTS 

Sec. 601. Sense of the House. 

TITLE VII—TITLE VII AMENDMENTS 

Sec. 701. Sense of the House. 

TITLE VIII—CLERICAL AMENDMENTS 

Sec. 801. Clerical amendments. 

TITLE IX—STUDENT LOAN FORGIVENESS FOR FAMILIES OF 9/11 

VICTIMS 
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Sec. 901. Cancellation of student loan indebtedness for spouses, surviving joint 

debtors, and parents. 

TITLE X—AMENDMENTS TO OTHER EDUCATION LAWS 

PART A—EDUCATION OF THE DEAF ACT OF 1986

Sec. 1001. Laurent Clerc National Deaf Education Center. 

Sec. 1002. Authority. 

Sec. 1003. Agreement for the National Technical Institute for the Deaf. 

Sec. 1004. Definitions. 

Sec. 1005. Audit. 

Sec. 1006. Reports. 

Sec. 1007. Liaison for educational programs. 

Sec. 1008. Federal endowment programs for Gallaudet University and the National Technical Institute for the Deaf. 

Sec. 1009. Oversight and effect of agreements. 

Sec. 1010. Authorization of appropriations. 

PART B—ADDITIONAL EDUCATION LAWS

Sec. 1021. Amendment to Higher Education Amendments of 1998. 

Sec. 1022. Tribally Controlled College or University Assistance Act of 1978. 

Sec. 1023. Navajo Community College Act. 

Sec. 1024. Education Amendments of 1992. 

Sec. 1025. Study of student learning outcomes and public accountability.

1 SEC. 2. REFERENCES; EFFECTIVE DATE. 

2 (a) REFERENCES.—Except as otherwise expressly 

3 provided, whenever in this Act an amendment or repeal 

4 is expressed in terms of an amendment to, or repeal of, 

5 a section or other provision, the reference shall be consid6 ered to be made to a section or other provision of the 

7 Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 

8 (b) EFFECTIVE DATE.—Except as otherwise provided 

9 in this Act, the amendments made by this Act shall take 

10 effect on the date of enactment of this Act. 
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1 TITLE I—GENERAL PROVISIONS 

2 SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU3 CATION. 

4 (a) AMENDMENT.—Title I is amended by striking 

5 sections 101 and 102 (20 U.S.C. 1001, 1002) and insert6 ing the following: 

7 ‘‘SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDU8 CATION. 

9 ‘‘(a) INSTITUTION OF HIGHER EDUCATION.—For 

10 purposes of this Act, the term ‘institution of higher edu11 cation’ means an educational institution in any State 

12 that—

13 ‘‘(1) admits as regular students only persons 

14 who—

15 ‘‘(A) meet the requirements of section 

16 484(d)(3), or have a certificate of graduation 

17 from a school providing secondary education, or 

18 the recognized equivalent of such a certificate; 

19 or 

20 ‘‘(B) are beyond the age of compulsory 

21 school attendance in the State in which the in22 stitution is located; 

23 ‘‘(2) is legally authorized within such State to 

24 provide a program of education beyond secondary 

25 education; 
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1 ‘‘(3)(A) is accredited by a nationally recognized 

2 accrediting agency or association; or 

3 ‘‘(B) if not so accredited, is a public or non4 profit institution that has been granted 

5 preaccreditation status by such an agency or asso6 ciation that has been recognized by the Secretary for 

7 the granting of preaccreditation status, and the Sec8 retary has determined that there is satisfactory as9 surance that the institution will meet the accredita10 tion standards of such an agency or association 

11 within a reasonable time; and 

12 ‘‘(4) meets either of the following criteria: 

13 ‘‘(A) is a nonprofit, for-profit, or public in14 stitution that—

15 ‘‘(i) provides an educational program 

16 for which the institution awards a bach17 elor’s degree; 

18 ‘‘(ii) provides not less than a 2-year 

19 educational program which is acceptable 

20 for full credit towards such a degree; or 

21 ‘‘(iii) provides not less than a 1-year 

22 program of training that prepares students 

23 for gainful employment in a recognized oc24 cupation; or 
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1 ‘‘(B) is a nonprofit, for-profit, or public in2 stitution that provides an eligible program (as 

3 defined in section 481)—

4 ‘‘(i) for which the institution awards a 

5 certificate; and 

6 ‘‘(ii) that prepares students for gain7 ful employment in a recognized occupation. 

8 ‘‘(b) ADDITIONAL LIMITATIONS.—

9 ‘‘(1) FOR-PROFIT POSTSECONDARY INSTITU10 TIONS.—

11 ‘‘(A) DURATION OF ACCREDITATION.—A 

12 for-profit institution shall not be considered to 

13 be an institution of higher education unless 

14 such institution is accredited by a nationally 

15 recognized accrediting agency or association 

16 and such institution has been in existence for at 

17 least 2 years. 

18 ‘‘(B) INSTITUTIONAL ELIGIBILITY ONLY

19 FOR COMPETITIVE GRANTS.—For the purposes 

20 of any program providing grants to institutions 

21 for use by the institution (and not for distribu22 tion among students), a for-profit institution 

23 shall not be considered to be an institution of 

24 higher education under this section if such 

25 grants are awarded on any basis other than 
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1 competition on the merits of the grant proposal 

2 or application. 

3 ‘‘(2) POSTSECONDARY VOCATIONAL INSTITU4 TIONS.—A nonprofit or public institution that meets 

5 the criteria of subsection (a)(4)(B) shall not be con6 sidered to be an institution of higher education un7 less such institution has been in existence for at 

8 least 2 years. 

9 ‘‘(3) LIMITATIONS BASED ON MANAGEMENT.—

10 An institution shall not be considered to meet the 

11 definition of an institution of higher education in 

12 this section if—

13 ‘‘(A) the institution, or an affiliate of the 

14 institution that has the power, by contract or 

15 ownership interest, to direct or cause the direc16 tion of the management or policies of the insti17 tution, has filed for bankruptcy, except that 

18 this paragraph shall not apply to a nonprofit in19 stitution, the primary function of which is to 

20 provide health care educational services (or an 

21 affiliate of such an institution that has the 

22 power, by contract or ownership interest, to di23 rect or cause the direction of the institution’s 

24 management or policies) that filed for bank25 ruptcy under chapter 11 of title 11, United 
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1 States Code, between July 1, 1998, and Decem2 ber 1, 1998; or 

3 ‘‘(B) the institution, the institution’s 

4 owner, or the institution’s chief executive officer 

5 has been convicted of, or has pled nolo 

6 contendere or guilty to, a crime involving the 

7 acquisition, use, or expenditure of Federal 

8 funds, or has been judicially determined to have 

9 committed a crime involving the acquisition, 

10 use, or expenditure involving Federal funds. 

11 ‘‘(4) LIMITATION ON COURSE OF STUDY OR EN12 ROLLMENT.—An institution shall not be considered 

13 to meet the definition of an institution of higher 

14 education in subsection (a) if such institution—

15 ‘‘(A) offers more than 50 percent of such 

16 institution’s courses by correspondence (exclud17 ing courses offered by telecommunications as 

18 defined in 484(l)(4)), unless the institution is 

19 an institution that meets the definition in sec20 tion 3(3)(C) of the Carl D. Perkins Vocational 

21 and Technical Education Act of 1998; 

22 ‘‘(B) enrolls 50 percent or more of the in23 stitution’s students in correspondence courses 

24 (excluding courses offered by telecommuni25 cations as defined in 484(l)(4)), unless the in-
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1 stitution is an institution that meets the defini2 tion in section 3(3)(C) of the Carl D. Perkins 

3 Vocational and Technical Education Act of 

4 1998, except that the Secretary, at the request 

5 of the institution, may waive the applicability of 

6 this subparagraph to the institution for good 

7 cause, as determined by the Secretary in the 

8 case of an institution of higher education that 

9 provides a 2- or 4-year program of instruction 

10 (or both) for which the institution awards an 

11 associate or baccalaureate degree, respectively; 

12 ‘‘(C) has a student enrollment in which 

13 more than 25 percent of the students are incar14 cerated, except that the Secretary may waive 

15 the limitation contained in this subparagraph 

16 for an institution that provides a 2- or 4-year 

17 program of instruction (or both) for which the 

18 institution awards a bachelor’s degree, or an as19 sociate’s degree or a postsecondary certificate, 

20 respectively; or 

21 ‘‘(D) has a student enrollment in which 

22 more than 50 percent of the students either do 

23 not meet the requirements of section 484(d)(3) 

24 or do not have a secondary school diploma or 

25 its recognized equivalent, and does not provide 
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1 a 2- or 4-year program of instruction (or both) 

2 for which the institution awards an associate’s 

3 degree or a bachelor’s degree, respectively, ex4 cept that the Secretary may waive the limita5 tion contained in this subparagraph if an insti6 tution demonstrates to the satisfaction of the 

7 Secretary that the institution exceeds such limi8 tation because the institution serves, through 

9 contracts with Federal, State, or local govern10 ment agencies, significant numbers of students 

11 who do not meet the requirements of section 

12 484(d)(3) or do not have a secondary school di13 ploma or its recognized equivalent. 

14 ‘‘(c) LIST OF ACCREDITING AGENCIES.—For pur15 poses of this section, the Secretary shall publish a list of 

16 nationally recognized accrediting agencies or associations 

17 that the Secretary determines, pursuant to subpart 2 of 

18 part H of title IV, to be reliable authority as to the quality 

19 of the education or training offered. 

20 ‘‘(d) CERTIFICATION.—The Secretary shall certify, 

21 for the purposes of participation in title IV, an institu22 tion’s qualification as an institution of higher education 

23 in accordance with the requirements of subpart 3 of part 

24 H of title IV. 
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1 ‘‘(e) LOSS OF ELIGIBILITY.—An institution of higher 

2 education shall not be considered to meet the definition 

3 of an institution of higher education in this section for 

4 the purposes of participation in title IV if such institution 

5 is removed from eligibility for funds under title IV as a 

6 result of an action pursuant to part H of title IV. 

7 ‘‘SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES. 

8 ‘‘(a) INSTITUTIONS OUTSIDE THE UNITED

9 STATES.—

10 ‘‘(1) IN GENERAL.—An institution outside the 

11 United States shall be considered to be an institu12 tion of higher education only for purposes of part B 

13 of title IV if the institution is comparable to an in14 stitution of higher education, as defined in section 

15 101, is legally authorized by the education ministry 

16 (or comparable agency) of the country in which the 

17 school is located, and has been approved by the Sec18 retary for purposes of that part. The Secretary shall 

19 establish criteria by regulation for that approval and 

20 that determination of comparability. An institution 

21 may not be so approved or determined to be com22 parable unless such institution is a public or non23 profit institution, except that, subject to paragraph 

24 (2)(B), a graduate medical school or veterinary 
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1 school located outside the United States may be a 

2 for-profit institution. 

3 ‘‘(2) MEDICAL AND VETERINARY SCHOOL CRI4 TERIA.—In the case of a graduate medical or veteri5 nary school outside the United States, such criteria 

6 shall include a requirement that a student attending 

7 such school outside the United States is ineligible 

8 for loans made, insured, or guaranteed under part B 

9 of title IV unless—

10 ‘‘(A) in the case of a graduate medical 

11 school located outside the United States—

12 ‘‘(i)(I) at least 60 percent of those en13 rolled in, and at least 60 percent of the 

14 graduates of, the graduate medical school 

15 outside the United States were not persons 

16 described in section 484(a)(5) in the year 

17 preceding the year for which a student is 

18 seeking a loan under part B of title IV; 

19 and 

20 ‘‘(II) at least 60 percent of the indi21 viduals who were students or graduates of 

22 the graduate medical school outside the 

23 United States or Canada (both nationals of 

24 the United States and others) taking the 

25 examinations administered by the Edu-
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1 cational Commission for Foreign Medical 

2 Graduates received a passing score in the 

3 year preceding the year for which a stu4 dent is seeking a loan under part B of title 

5 IV; or 

6 ‘‘(ii) the institution has a clinical 

7 training program that was approved by a 

8 State as of January 1, 1992; or 

9 ‘‘(B) in the case of a veterinary school lo10 cated outside the United States that is not a 

11 public or nonprofit institution, the institution’s 

12 students complete their clinical training at an 

13 approved veterinary school located in the 

14 United States. 

15 ‘‘(b) ADVISORY PANEL.—

16 ‘‘(1) IN GENERAL.—For the purpose of quali17 fying a foreign medical school as an institution of 

18 higher education only for purposes of part B of title 

19 IV, the Secretary shall publish qualifying criteria by 

20 regulation and establish an advisory panel of medical 

21 experts that shall—

22 ‘‘(A) evaluate the standards of accredita23 tion applied to applicant foreign medical 

24 schools; and 
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1 ‘‘(B) determine the comparability of those 

2 standards to standards for accreditation applied 

3 to United States medical schools. 

4 ‘‘(2) FAILURE TO RELEASE INFORMATION.—

5 The failure of an institution outside the United 

6 States to provide, release, or authorize release to the 

7 Secretary of such information as may be required by 

8 subsection (a)(2) shall render such institution ineli9 gible for the purpose of part B of title IV. 

10 ‘‘(c) SPECIAL RULE.—If, pursuant to this section, an 

11 institution located outside the United States loses eligi12 bility to participate in the programs under part B of title 

13 IV, then a student enrolled at such institution may, not14 withstanding such loss of eligibility, continue to be eligible 

15 to receive a loan under part B of title IV while attending 

16 such institution for the academic year succeeding the aca17 demic year in which such loss of eligibility occurred.’’. 

18 (b) RESTRICTIONS ON FUNDS FOR FOR-PROFIT

19 SCHOOLS.—Part B of title I is amended by inserting after 

20 section 122 (20 U.S.C. 1011k) the following new section: 

21 ‘‘SEC. 123. RESTRICTIONS ON FUNDS FOR FOR-PROFIT 

22 SCHOOLS. 

23 ‘‘(a) IN GENERAL.—Notwithstanding any other pro24 vision of this Act authorizing the use of funds by an insti25 tution of higher education that receives funds under this 
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1 Act, none of the funds made available under this Act to 

2 a for-profit institution of higher education may be used 

3 for—

4 ‘‘(1) construction, maintenance, renovation, re5 pair, or improvement of classrooms, libraries, labora6 tories, or other facilities; 

7 ‘‘(2) establishing, improving, or increasing an 

8 endowment fund; or 

9 ‘‘(3) establishing or improving an institutional 

10 development office to strengthen or improve con11 tributions from alumni and the private sector. 

12 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply to 

13 funds received by the institution from the grant, loan, or 

14 work assistance that is awarded under title IV to the stu15 dents attending such institution.’’. 

16 (c) CONFORMING AMENDMENTS.—

17 (1) Section 114(a) (20 U.S.C. 1011c(a)) is 

18 amended by striking ‘‘(as defined in section 102)’’. 

19 (2) Section 428K(b) (20 U.S.C. 1078–11(b)) is 

20 amended by striking paragraph (5). 

21 (3) Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is 

22 amended by striking ‘‘section 102’’ and inserting 

23 ‘‘section 101’’. 

24 (4) Subsection (d) of section 484 (20 U.S.C. 

25 1091(d)) is amended by striking the designation and 
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1 heading of such subsection and inserting the fol2 lowing: 

3 ‘‘(d) SATISFACTION OF SECONDARY EDUCATION

4 STANDARDS.—’’. 

5 (5) Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is 

6 amended by striking ‘‘102(a)(3)(A), 102(a)(3)(B)’’ 

7 and inserting ‘‘101(b)(4)(A), 101(b)(4)(B)’’. 

8 (6) Section 487(c)(1)(A)(iii) (20 U.S.C. 

9 1094(c)(1)(A)(iii)) is amended by striking ‘‘section 

10 102(a)(1)(C)’’ and inserting ‘‘section 102’’. 

11 (7) Section 487(d) (20 U.S.C. 1094(d)) is 

12 amended by striking ‘‘section 102’’ and inserting 

13 ‘‘section 101’’. 

14 (8) Subsections (j) and (k) of section 496 (20 

15 U.S.C. 1099b(j), (k)) are each amended by striking 

16 ‘‘section 102’’ and inserting ‘‘section 101’’. 

17 (9) Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) 

18 is amended by striking ‘‘section 102(a)(1)(C)’’ and 

19 inserting ‘‘section 102’’. 

20 (10) Section 498(i) (20 U.S.C. 1099c(i)) is 

21 amended by striking ‘‘section 102’’ and inserting 

22 ‘‘section 101’’. 

23 (11) Section 498(j)(1) (20 U.S.C. 1099c) is 

24 amended by striking ‘‘except that such branch shall 

25 not be required to meet the requirements of sections 
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1 102(b)(1)(E) and 102(c)(1)(C) prior to seeking such 

2 certification’’ and inserting ‘‘except that such branch 

3 shall not be required to be in existence for at least 

4 2 years prior to seeking such certification’’. 

5 (12) Section 498B(b) (20 U.S.C. 1099c–2(b)) 

6 is amended by striking ‘‘section 102(a)(1)(C)’’ and 

7 inserting ‘‘section 102’’. 

8 SEC. 102. NEW BORROWER DEFINITION. 

9 Paragraph (7) of section 103 (20 U.S.C. 1003) is 

10 amended to read as follows: 

11 ‘‘(7) NEW BORROWER.—The term ‘new bor12 rower’ when used with respect to any date for any 

13 loan under any provision of—

14 ‘‘(A) part B or part D of title IV means 

15 an individual who on that date has no out16 standing balance of principal or interest owing 

17 on any loan made, insured, or guaranteed under 

18 either of those parts; and 

19 ‘‘(B) part E of title IV means an indi20 vidual who on that date has no outstanding bal21 ance of principal or interest owing on any loan 

22 made under that part.’’. 

23 SEC. 103. STUDENT SPEECH AND ASSOCIATION RIGHTS. 

24 Section 112 (20 U.S.C. 1011a) is amended—
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1 (1) by amending subsection (a) to read as fol2 lows: 

3 ‘‘(a) PROTECTION OF RIGHTS.—It is the sense of 

4 Congress that—

5 ‘‘(1) no student attending an institution of 

6 higher education on a full- or part-time basis should, 

7 on the basis of participation in protected speech or 

8 protected association, be excluded from participation 

9 in, be denied the benefits of, or be subjected to dis10 crimination or official sanction under any education 

11 program, activity, or division of the institution di12 rectly or indirectly receiving financial assistance 

13 under this Act, whether or not such program, activ14 ity, or division is sponsored or officially sanctioned 

15 by the institution; and 

16 ‘‘(2) an institution of higher education should 

17 ensure that a student attending such institution on 

18 a full- or part-time basis is—

19 ‘‘(A) evaluated solely on the basis of their 

20 reasoned answers and knowledge of the subjects 

21 and disciplines they study and without regard 

22 to their political, ideological, or religious beliefs; 

23 ‘‘(B) assured that the selection of speakers 

24 and allocation of funds for speakers, programs, 

25 and other student activities will utilize methods 
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1 that promote intellectual pluralism and include 

2 diverse viewpoints; 

3 ‘‘(C) presented diverse approaches and dis4 senting sources and viewpoints within the in5 structional setting; and 

6 ‘‘(D) not excluded from participation in, 

7 denied the benefits of, or subjected to discrimi8 nation or official sanction on the basis of their 

9 political or ideological beliefs under any edu10 cation program, activity, or division of the insti11 tution directly or indirectly receiving financial 

12 assistance under this Act, whether or not such 

13 program, activity, or division is sponsored or of14 ficially sanctioned by the institution.’’; and 

15 (2) in subsection (b)(1), by inserting after 

16 ‘‘higher education’’ the following: ‘‘, provided that 

17 the imposition of such sanction is done objectively, 

18 fairly, and without regard to the student’s political, 

19 ideological, or religious beliefs’’. 

20 SEC. 104. EXTENSION OF NATIONAL ADVISORY COMMITTEE 

21 ON INSTITUTIONAL QUALITY AND INTEGRITY. 

22 Section 114(g) (20 U.S.C. 1011c(g)) is amended by 

23 striking ‘‘2004’’ and inserting ‘‘2011’’. 
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1 SEC. 105. ALCOHOL AND DRUG ABUSE PREVENTION. 

2 Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amend3 ed—

4 (1) by striking ‘‘1999’’ and inserting ‘‘2005’’; 

5 and 

6 (2) by striking ‘‘4 succeeding fiscal years’’ and 

7 inserting ‘‘5 succeeding fiscal years’’. 

8 SEC. 106. PRIOR RIGHTS AND OBLIGATIONS. 

9 Section 121(a) (20 U.S.C. 1011j(a)) is amended by 

10 striking ‘‘1999 and for each of the 4’’ each place it ap11 pears and inserting ‘‘2005 and for each of the 5’’. 

12 SEC. 107. CONSUMER INFORMATION AND PUBLIC AC13 COUNTABILITY IN HIGHER EDUCATION. 

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

15 follows: 

16 ‘‘SEC. 131. CONSUMER INFORMATION AND PUBLIC AC17 COUNTABILITY IN HIGHER EDUCATION. 

18 ‘‘(a) DATA COLLECTION.—

19 ‘‘(1) DATA SYSTEMS.—The Secretary shall con20 tinue to redesign the relevant parts of the postsec21 ondary education data systems to include additional 

22 data as required by this section and to continue to 

23 improve the usefulness and timeliness of data col24 lected by such systems. 

25 ‘‘(2) INFORMATION FROM INSTITUTIONS.—The 

26 Commissioner of Education Statistics shall collect, 
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1 for each academic year and in accordance with 

2 standard definitions developed by the Commissioner 

3 of Education Statistics (including definitions devel4 oped under section 131(a)(3)(A) as in effect on the 

5 day before the date of enactment of the College Ac6 cess and Opportunity Act of 2004) from at least all 

7 institutions of higher education participating in pro8 grams under title IV, and such institutions shall 

9 provide, the following data: 

10 ‘‘(A) The tuition and fees charged for a 

11 full-time undergraduate student. 

12 ‘‘(B) The room and board charges for such 

13 a student. 

14 ‘‘(C) The cost of attendance for a full-time 

15 undergraduate student, consistent with the pro16 visions of section 472. 

17 ‘‘(D) The average amount of financial as18 sistance received by a full-time undergraduate 

19 student, including—

20 ‘‘(i) each type of assistance or benefits 

21 described in 428(a)(2)(C)(ii); 

22 ‘‘(ii) fellowships; 

23 ‘‘(iii) institutional and other assist24 ance; and 

25 ‘‘(iv) loans under parts B and D. 
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1 ‘‘(E) The number of students receiving fi2 nancial assistance described in each clause of 

3 subparagraph (D). 

4 ‘‘(F) The average net price for students re5 ceiving Federal, State, or institutional financial 

6 assistance. 

7 ‘‘(G) The institutional instructional ex8 penditure per full-time equivalent student. 

9 ‘‘(b) DATA DISSEMINATION.—The Secretary shall 

10 make available the data collected pursuant to this section, 

11 including an institution’s college affordability index as cal12 culated in accordance with subsection (c). Such data shall 

13 be made available in a manner that permits the review 

14 and comparison of data submissions of individual institu15 tions of higher education. Such data shall be presented 

16 in a form that is easily accessible and understandable and 

17 allows parents and students to make informed decisions 

18 based on the prices for typical full-time undergraduate 

19 students and the institution’s rate of cost increase. 

20 ‘‘(c) COLLEGE AFFORDABILITY INDEX.—

21 ‘‘(1) IN GENERAL.—The Secretary shall, on the 

22 basis of the data submitted under subsection (a), 

23 calculate a college affordability index for each insti24 tution of higher education submitting such data and 

25 shall make the index available in accordance with 
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1 subsection (b) as soon as operationally possible on 

2 the Department’s college opportunity online Web 

3 site. 

4 ‘‘(2) CALCULATION OF INDEX.—The college af5 fordability index shall be equal to—

6 ‘‘(A) the percentage increase in the tuition 

7 and fees charged for a first-time, full-time, full8 year undergraduate student between the first of 

9 the 3 most recent preceding academic years and 

10 the last of those 3 academic years; divided by 

11 ‘‘(B) the percentage increase in the Con12 sumer Price Index—All Urban Consumers 

13 (Current Series) from July of the first of those 

14 3 academic years to July of the last of those 3 

15 academic years. 

16 ‘‘(d) OUTCOMES AND ACTIONS.—

17 ‘‘(1) RESPONSE FROM INSTITUTION.—Effective 

18 on June 30, 2008, an institution that has a college 

19 affordability index that exceeds 2.0 for any 3-year 

20 interval ending on or after that date shall provide a 

21 report to the Secretary, in such a form, at such 

22 time, and containing such information as the Sec23 retary may require. Such report shall include—
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1 ‘‘(A) an explanation of the factors contrib2 uting to the increase in the institution’s costs 

3 and in the tuition and fees charged to students; 

4 ‘‘(B) a management plan stating the spe5 cific steps the institution is and will be taking 

6 to reduce its college affordability index; 

7 ‘‘(C) an action plan, including a schedule, 

8 by which the institution will reduce increases in 

9 or stabilize, such costs and tuition and fees; and 

10 ‘‘(D) if determinations of tuition and fee 

11 increases are not within the exclusive control of 

12 the institution, a description of the agency or 

13 instrumentality of State government or other 

14 entity that participates in such determinations 

15 and the authority exercised by such agency, in16 strumentality, or entity. 

17 ‘‘(2) INFORMATION TO THE PUBLIC.—Upon re18 ceipt of the institution’s report and management 

19 plan under paragraph (1), the Secretary shall make 

20 the institution’s report required under paragraph (1) 

21 available to the public in accordance with subsection 

22 (b). 

23 ‘‘(3) CONSEQUENCES FOR 2-YEAR CONTINU24 ATION OF FAILURE.—If the Secretary determines 

25 that the institution has failed to comply with the 
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1 management plan and action plan submitted by the 

2 institution under this subsection following the next 

3 2 academic years that begin after the submission of 

4 such plans, and has failed to reduce the college af5 fordability index below 2.0 for such 2 academic 

6 years, the Secretary—

7 ‘‘(A) shall make available to the public a 

8 detailed report provided by the institution on all 

9 costs and expenditures, and on all tuition and 

10 fees charged to students, for such 2 academic 

11 years; 

12 ‘‘(B) shall place the institution on an af13 fordability alert status and shall make the in14 formation regarding the institution’s failure 

15 available in accordance with subsection (b); 

16 ‘‘(C) shall notify the institution’s accred17 iting agency of the institution’s failure; and 

18 ‘‘(D) may require the institution to submit 

19 to a review and audit by the Inspector General 

20 of the Department of Education to determine 

21 the cause of the institution’s failure. 

22 ‘‘(4) INFORMATION TO STATE AGENCIES.—Any 

23 institution that reports under paragraph (1)(D) that 

24 an agency or instrumentality of State government or 

25 other entity participates in the determinations of tui-
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1 tion and fee increases shall, prior to submitting any 

2 information to the Secretary under this subsection, 

3 submit such information to, and request the com4 ments and input of, such agency, instrumentality, or 

5 entity. With respect to any such institution, the Sec6 retary shall provide a copy of any communication by 

7 the Secretary with that institution to such agency, 

8 instrumentality, or entity. 

9 ‘‘(5) EXEMPTIONS.—

10 ‘‘(A) RELATIVE PRICE EXEMPTION.—The 

11 Secretary shall, for any 3-year interval for 

12 which college affordability indexes are computed 

13 under paragraph (1), determine and publish the 

14 dollar amount that, for each class of institution 

15 described in subparagraph (C) represents the 

16 maximum tuition and fees charged for a full17 time undergraduate student in the least costly 

18 quartile of institutions within each such class 

19 during the last year of such 3-year interval. An 

20 institution that has a college affordability index 

21 computed under paragraph (1) that exceeds 2.0 

22 for any such 3-year interval, but that, on aver23 age during such 3-year interval, charges less 

24 than such maximum tuition and fees shall not 

25 be subject to the actions required by subpara-
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1 graph (B) or (C) of paragraph (1), or any ac2 tion under paragraph (3), unless such institu3 tion, for a subsequent 3-year interval, charges 

4 more than such maximum tuition and fees. 

5 ‘‘(B) DOLLAR INCREASE EXEMPTION.—An 

6 institution that has a college affordability index 

7 computed under paragraph (1) that exceeds 2.0 

8 for any 3-year interval, but that exceeds such 

9 2.0 by a dollar amount that is less than $500, 

10 shall not be subject to the actions required by 

11 subparagraph (B) or (C) of paragraph (1), or 

12 any action under paragraph (3), unless such in13 stitution has a college affordability index for a 

14 subsequent 3-year interval that exceeds 2.0 by 

15 more than such dollar amount. 

16 ‘‘(C) CLASSES OF INSTITUTIONS.—For 

17 purposes of subparagraph (B), the classes of in18 stitutions shall be those sectors used by the In19 tegrated Postsecondary Education Data Sys20 tem, based on whether the institution is public, 

21 nonprofit private, or for-profit private, and 

22 whether the institution has a 4-year, 2-year, or 

23 less than 2-year program of instruction. 

24 ‘‘(e) FINES.—In addition to actions authorized in 

25 section 487(c), the Secretary may impose a fine in an 
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1 amount not to exceed $25,000 on an institution of higher 

2 education for failing to provide the information described 

3 in this section in a timely and accurate manner, or for 

4 failing to otherwise cooperate with the National Center for 

5 Education Statistics regarding efforts to obtain data on 

6 the cost and price of higher education under this section 

7 and pursuant to the program participation agreement en8 tered into under section 487. 

9 ‘‘(f) GAO STUDY AND REPORT.—

10 ‘‘(1) GAO STUDY.—The Comptroller General 

11 shall conduct a study of the policies and procedures 

12 implemented by institutions in increasing the afford13 ability of postsecondary education. Such study shall 

14 include information with respect to—

15 ‘‘(A) a list of those institutions that—

16 ‘‘(i) have reduced their college afford17 ability indexes; or 

18 ‘‘(ii) are, as determined under sub19 section (d)(5)(A), within the least costly 

20 quartile of institutions within each class 

21 described in subsection (d)(5)(C); 

22 ‘‘(B) policies implemented to stem the in23 crease in tuition and fees and institutional 

24 costs; 
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1 ‘‘(C) the extent to which room and board 

2 costs and prices changed; 

3 ‘‘(D) the extent to which other services 

4 were altered to affect tuition and fees; 

5 ‘‘(E) the extent to which the institution’s 

6 policies affected student body demographics and 

7 time to completion; 

8 ‘‘(F) what, if any, operational factors 

9 played a role in reducing tuition and fees; 

10 ‘‘(G) the extent to which academic quality 

11 was affected, and how; 

12 ‘‘(H) the extent to which policies and prac13 tices reducing costs and prices may be rep14 licated from one institution to another; and 

15 ‘‘(I) other information as necessary to de16 termine best practices in increasing the afford17 ability of postsecondary education. 

18 ‘‘(2) INTERIM AND FINAL REPORTS.—The 

19 Comptroller General shall submit an interim and a 

20 final report regarding the findings of the study re21 quired by paragraph (1) to the appropriate author22 izing committees of Congress. The interim report 

23 shall be submitted not later than July 31, 2010, and 

24 the final report shall be submitted not later than 

25 July 31, 2012. 
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1 ‘‘(g) STUDENT AID RECIPIENT SURVEY.—

2 ‘‘(1) SURVEY REQUIRED.—The Secretary shall 

3 conduct a survey of student aid recipients under title 

4 IV on a regular cycle and State-by-State basis, but 

5 not less than once every 4 years— 

6 ‘‘(A) to identify the population of students 

7 receiving Federal student aid; 

8 ‘‘(B) to describe the income distribution 

9 and other socioeconomic characteristics of fed10 erally aided students; 

11 ‘‘(C) to describe the combinations of aid 

12 from State, Federal, and private sources re13 ceived by students from all income groups; 

14 ‘‘(D) to describe the debt burden of edu15 cational loan recipients and their capacity to 

16 repay their education debts, and the impact of 

17 such debt burden on career choices; 

18 ‘‘(E) to describe the role played by the 

19 price of postsecondary education in the deter20 mination by students of what institution to at21 tend; and 

22 ‘‘(F) to describe how the increased costs of 

23 textbooks and other instructional materials af24 fects the costs of postsecondary education to 

25 students. 
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1 ‘‘(2) SURVEY DESIGN.—The survey shall be 

2 representative of full-time and part-time, under3 graduate, graduate, and professional and current 

4 and former students in all types of institutions, and 

5 designed and administered in consultation with the 

6 Congress and the postsecondary education commu7 nity. 

8 ‘‘(3) DISSEMINATION.—The Secretary shall dis9 seminate the information resulting from the survey 

10 in both printed and electronic form. 

11 ‘‘(h) REGULATIONS.—The Secretary is authorized to 

12 issue such regulations as may be necessary to carry out 

13 the provisions of this section.’’. 

14 SEC. 108. PERFORMANCE-BASED ORGANIZATION. 

15 Section 141 (20 U.S.C. 1018) is amended—

16 (1) in subsection (a)(2)(B)—

17 (A) by inserting ‘‘unit’’ after ‘‘to reduce 

18 the’’; and 

19 (B) by inserting ‘‘and, to the extent prac20 ticable, the total costs of administering those 

21 programs’’ after ‘‘those programs’’; 

22 (2) in subsection (c)—

23 (A) in paragraph (1)(A), by striking ‘‘Each 

24 year’’ and inserting ‘‘Each fiscal year’’; 
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1 (B) in paragraph (1)(B), by inserting ‘‘sec2 ondary markets, guaranty agencies,’’ after 

3 ‘‘lenders,’’; and 

4 (C) in paragraph (2)(B), by striking 

5 ‘‘Chief Financial Officer Act of 1990 and’’ and 

6 inserting ‘‘Chief Financial Officers Act of 

7 1990,’’ and by inserting before the period at the 

8 end the following: ‘‘, and other relevant stat9 utes’’; and 

10 (3) in subsection (f)(3)(A), by striking ‘‘para11 graph (1)(A)’’ and inserting ‘‘paragraph (1)’’. 

12 TITLE II—TEACHER 

13 PREPARATION 

14 SEC. 201. SENSE OF THE HOUSE OF REPRESENTATIVES. 

15 It is the sense of the House of Representatives that 

16 title II of the Higher Education Act of 1965 should be 

17 amended as provided in H.R. 2211 as passed by the House 

18 of Representatives on July 9, 2003. 

19 TITLE III—INSTITUTIONAL AID 

20 SEC. 301. TITLE III GRANTS FOR AMERICAN INDIAN TRIB21 ALLY CONTROLLED COLLEGES AND UNIVER22 SITIES. 

23 (a) ELIGIBLE INSTITUTIONS.—Subsection (b) of sec24 tion 316 (20 U.S.C. 1059c(b)) is amended to read as fol25 lows: 
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1 ‘‘(b) DEFINITIONS.—

2 ‘‘(1) ELIGIBLE INSTITUTIONS.—For purposes 

3 of this section, Tribal Colleges and Universities are 

4 the following: 

5 ‘‘(A) any of the following institutions that 

6 qualify for funding under the Tribally Con7 trolled College or University Assistance Act of 

8 1978 or is listed in Equity in Educational Land 

9 Grant Status Act of 1994 (7 U.S.C. 301 note): 

10 Bay Mills Community College; Blackfeet Com11 munity College; Cankdeska Cikana Community 

12 College; Chief Dull Knife College; College of 

13 Menominee Nation; Crownpoint Institute of 

14 Technology; Dine ́ College; D–Q University; 

15 Fond du Lac Tribal and Community College; 

16 Fort Belknap College; Fort Berthold Commu17 nity College; Fort Peck Community College; 

18 Haskell Indian Nations University; Institute of 

19 American Indian and Alaska Native Culture 

20 and Arts Development; Lac Courte Oreilles 

21 Ojibwa Community College; Leech Lake Tribal 

22 College; Little Big Horn College; Little Priest 

23 Tribal College; Nebraska Indian Community 

24 College; Northwest Indian College; Oglala 

25 Lakota College; Saginaw Chippewa Tribal Col-
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1 lege; Salish Kootenai College; Si Tanka Univer2 sity—Eagle Butte Campus; Sinte Gleska Uni3 versity; Sisseton Wahpeton Community College; 

4 Sitting Bull College; Southwestern Indian Poly5 technic Institute; Stone Child College; Tohono 

6 O’Odham Community College; Turtle Mountain 

7 Community College; United Tribes Technical 

8 College; and White Earth Tribal and Commu9 nity College; and 

10 ‘‘(B) any other institution that meets the 

11 definition of tribally controlled college or uni12 versity in section 2 of the Tribally Controlled 

13 College or University Assistance Act of 1978, 

14 and meets all other requirements of this sec15 tion. 

16 ‘‘(2) INDIAN.—The term ‘Indian’ has the mean17 ing given the term in section 2 of the Tribally Con18 trolled College or University Assistance Act of 

19 1978.’’. 

20 (b) DISTANCE LEARNING.—Subsection (c)(2) of such 

21 section is amended—

22 (1) by amending subparagraph (B) to read as 

23 follows: 

24 ‘‘(B) construction, maintenance, renova25 tion, and improvement in classrooms, libraries, 
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1 laboratories, and other instructional facilities, 

2 including purchase or rental of telecommuni3 cations technology equipment or services, and 

4 the acquisition of real property adjacent to the 

5 campus of the institution on which to construct 

6 such facilities;’’; 

7 (2) by striking ‘‘and’’ at the end of subpara8 graph (K); 

9 (3) by redesignating subparagraph (L) as sub10 paragraph (M); and 

11 (4) by inserting after subparagraph (K) the fol12 lowing new subparagraph: 

13 ‘‘(L) developing or improving facilities for 

14 Internet use or other distance learning aca15 demic instruction capabilities; and’’. 

16 (c) APPLICATION AND ALLOTMENT.—Subsection (d) 

17 of such section is amended to read as follows: 

18 ‘‘(d) APPLICATION AND ALLOTMENT.—

19 ‘‘(1) INSTITUTIONAL ELIGIBILITY.—To be eligi20 ble to receive assistance under this section, a Tribal 

21 College or University shall be an eligible institution 

22 under section 312(b). 

23 ‘‘(2) APPLICATION.—Any Tribal College or Uni24 versity desiring to receive assistance under this sec25 tion shall submit an application to the Secretary at 
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1 such time, and in such manner, as the Secretary 

2 may reasonably require. 

3 ‘‘(3) ALLOTMENTS TO INSTITUTIONS.—

4 ‘‘(A) ALLOTMENT: PELL GRANT BASIS.—

5 From the amount appropriated to carry out 

6 this section for any fiscal year, the Secretary 

7 shall allot to each eligible institution a sum 

8 which bears the same ratio to one-half that 

9 amount as the number of Pell Grant recipients 

10 in attendance at such institution at the end of 

11 the award year preceding the beginning of that 

12 fiscal year bears to the total number of Pell 

13 Grant recipients at all eligible institutions. 

14 ‘‘(B) ALLOTMENT: DEGREE AND CERTIFI15 CATE BASIS.—From the amount appropriated 

16 to carry out this section for any fiscal year, the 

17 Secretary shall allot to each eligible institution 

18 a sum which bears the same ratio to one-half 

19 that amount as the number of degrees or cer20 tificates awarded by such institution during the 

21 preceding academic year bears to the total num22 ber of degrees or certificates at all eligible insti23 tutions. 

24 ‘‘(C) MINIMUM GRANT.—Notwithstanding 

25 subparagraphs (A) and (B), the amount allot-
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1 ted to each institution under this section shall 

2 not be less than $400,000. 

3 ‘‘(4) SPECIAL RULES.—

4 ‘‘(A) CONCURRENT FUNDING.—For the 

5 purposes of this part, no Tribal College or Uni6 versity that is eligible for and receives funds 

7 under this section shall concurrently receive 

8 funds under other provisions of this part or 

9 part B. 

10 ‘‘(B) EXEMPTION.—Section 313(d) shall 

11 not apply to institutions that are eligible to re12 ceive funds under this section.’’. 

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

14 INSTITUTIONS. 

15 (a) DISTANCE LEARNING.—Section 317(c)(2) (20 

16 U.S.C. 1059d(c)(2)) is amended—

17 (1) by amending subparagraph (B) to read as 

18 follows: 

19 ‘‘(A) construction, maintenance, renova20 tion, and improvement in classrooms, libraries, 

21 laboratories, and other instructional facilities, 

22 including purchase or rental of telecommuni23 cations technology equipment or services, and 

24 the acquisition of real property adjacent to the 
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1 campus of the institution on which to construct 

2 such facilities;’’; 

3 (2) by striking ‘‘and’’ at the end of subpara4 graph (G); 

5 (3) by striking the period at the end of sub6 paragraph (H) and inserting ‘‘; and’’; and 

7 (4) by inserting after subparagraph (H) the fol8 lowing new subparagraph: 

9 ‘‘(I) development or improvement of facili10 ties for Internet use or other distance learning 

11 academic instruction capabilities.’’. 

12 (b) ENDOWMENT FUNDS.—Section 317(c) is further 

13 amended by adding at the end the following new para14 graph: 

15 ‘‘(3) ENDOWMENT FUNDS.—

16 ‘‘(A) IN GENERAL.—An Alaska Native or 

17 Native Hawaiian-serving institution may use 

18 not more than 20 percent of the grant funds 

19 provided under this section to establish or in20 crease an endowment fund at the institution. 

21 ‘‘(B) MATCHING REQUIREMENT.—In order 

22 to be eligible to use grant funds in accordance 

23 with subparagraph (A), the institution shall 

24 provide to the endowment fund from non-Fed25 eral funds an amount equal to the Federal 
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1 funds used in accordance with subparagraph 

2 (A), for the establishment or increase of the en3 dowment fund. 

4 ‘‘(C) APPLICABILITY OF OTHER PROVI5 SIONS.—The provisions of part C regarding the 

6 establishment or increase of an endowment 

7 fund, that the Secretary determines are not in8 consistent with this paragraph, shall apply to 

9 funds used under subparagraph (A).’’. 

10 (c) APPLICATION PROCESS.—Section 317(d) is 

11 amended—

12 (1) by adding at the end of paragraph (1) the 

13 following new sentences: ‘‘Each Alaska Native-serv14 ing institution and Native Hawaiian-serving institu15 tion shall develop a 5-year plan for improving the as16 sistance provided to Alaska Native or Native Hawai17 ian students. Such plan shall not be subject to ap18 proval by the Secretary.’’; and 

19 (2) in paragraph (2)—

20 (A) by redesignating subparagraph (B) as 

21 subparagraph (C); and 

22 (B) by striking subparagraph (A) and in23 serting the following: 
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1 ‘‘(A) an assurance that the institution has 

2 developed a 5-year plan for serving Alaska Na3 tive or Native Hawaiian students; 

4 ‘‘(B) a list of activities and other informa5 tion that are consistent with the institution’s 5-

6 year plan; and’’. 

7 SEC. 303. GRANTS TO PART B INSTITUTIONS. 

8 (a) USE OF FUNDS.—

9 (1) FACILITIES AND EQUIPMENT.—

10 (A) UNDERGRADUATE INSTITUTIONS.—

11 Paragraph (2) of section 323(a) (20 U.S.C. 

12 1062(a)) is amended to read as follows: 

13 ‘‘(2) Construction, maintenance, renovation, 

14 and improvement in classrooms, libraries, labora15 tories, and other instructional facilities, including 

16 purchase or rental of telecommunications technology 

17 equipment or services, and the acquisition of real 

18 property adjacent to the campus of the institution 

19 on which to construct such facilities.’’. 

20 (B) GRADUATE AND PROFESSIONAL

21 SCHOOLS.—Paragraph (2) of section 326(c) is 

22 amended to read as follows: 

23 ‘‘(2) construction, maintenance, renovation, and 

24 improvement in classrooms, libraries, laboratories, 

25 and other instructional facilities, including purchase 
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1 or rental of telecommunications technology equip2 ment or services, and the acquisition of real property 

3 adjacent to the campus of the institution on which 

4 to construct such facilities;’’. 

5 (2) OUTREACH AND COLLABORATION.—Para6 graph (11) of section 323(a) is amended to read as 

7 follows: 

8 ‘‘(11) Establishing community outreach pro9 grams and collaborative partnerships between part B 

10 institutions and local elementary or secondary 

11 schools. Such partnerships may include mentoring, 

12 tutoring, or other instructional opportunities that 

13 will boost student academic achievement and assist 

14 elementary and secondary school students in devel15 oping the academic skills and the interest to pursue 

16 postsecondary education.’’. 

17 (b) TECHNICAL ASSISTANCE.—Section 323 (20 

18 U.S.C. 1062) is amended—

19 (1) by redesignating subsection (c) as sub20 section (d); and 

21 (2) by inserting after subsection (b) the fol22 lowing new subsection: 

23 ‘‘(c) TECHNICAL ASSISTANCE.—

24 ‘‘(1) IN GENERAL.—An institution may not use 

25 more than 2 percent of the grant funds provided 
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1 under this part to secure technical assistance serv2 ices. 

3 ‘‘(2) TECHNICAL ASSISTANCE SERVICES.—

4 Technical assistance services may include assistance 

5 with enrollment management, financial management, 

6 and strategic planning. 

7 ‘‘(3) REPORT.—The institution shall report to 

8 the Secretary on an annual basis, in such form as 

9 the Secretary requires, on the use of funds under 

10 this subsection.’’. 

11 (c) DISTANCE LEARNING.—Section 323(a)(2) (20 

12 U.S.C. 1062(a)(2)) is amended by inserting ‘‘development 

13 or improvement of facilities for Internet use or other dis14 tance learning academic instruction capabilities and’’ after 

15 ‘‘including’’. 

16 (d) MINIMUM GRANTS.—Section 324(d)(1) (20 

17 U.S.C. 1063(d)(1)) is amended by inserting before the pe18 riod at the end the following: ‘‘, except that, if the amount 

19 appropriated to carry out this part for any fiscal year ex20 ceeds the amount required to provide to each institution 

21 an amount equal to the total amount received by such in22 stitution under subsections (a), (b), and (c) for the pre23 ceding fiscal year, then the amount of such excess appro24 priation shall first be applied to increase the minimum al25 lotment under this subsection to $750,000’’. 
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1 (e) ELIGIBLE GRADUATE OR PROFESSIONAL

2 SCHOOLS.—

3 (1) GENERAL AUTHORITY.—Section 326(a)(1) 

4 (20 U.S.C. 1063b(a)(1)) is amended—

5 (A) by inserting ‘‘(A)’’ after ‘‘subsection 

6 (e) that’’; 

7 (B) by inserting before the period at the 

8 end the following: ‘‘, (B) is accredited by a na9 tionally recognized accrediting agency or asso10 ciation determined by the Secretary to be a reli11 able authority as to the quality of training of12 fered, and (C) according to such an agency or 

13 association, is in good standing’’. 

14 (2) ELIGIBLE INSTITUTIONS.—Section 

15 326(e)(1) (20 U.S.C. 1063b(e)(1)) is amended—

16 (A) by striking ‘‘and’’ at the end of sub17 paragraph (Q); 

18 (B) by striking the period at the end of 

19 subparagraph (R) and inserting a semicolon; 

20 and 

21 (C) by adding at the end the following new 

22 subparagraphs: 

23 ‘‘(S) Alabama State University qualified 

24 graduate program; 
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1 ‘‘(T) Prairie View A&M University quali2 fied graduate program; and 

3 ‘‘(U) Coppin State University qualified 

4 graduate program.’’. 

5 (3) CONFORMING AMENDMENT.—Section 

6 326(e)(3) (20 U.S.C. 1063b(e)(3)) is amended—

7 (A) by striking ‘‘1998’’ and inserting 

8 ‘‘2004’’; and 

9 (B) by striking ‘‘(Q) and (R)’’ and insert10 ing ‘‘(S), (T), and (U)’’. 

11 (f) PROFESSIONAL OR GRADUATE INSTITUTIONS.—

12 Section 326(f) (20 U.S.C. 1063b(f)) is amended—

13 (1) in paragraph (1)—

14 (A) by striking ‘‘$26,600,000’’ and insert15 ing ‘‘$55,500,000’’; and 

16 (B) by striking ‘‘(P)’’ and inserting ‘‘(R)’’; 

17 (2) in paragraph (2)—

18 (A) by striking ‘‘$26,600,000 but not in 

19 excess of $28,600,000’’ and inserting 

20 ‘‘$55,500,000, but not in excess of 

21 $58,500,000’’; and 

22 (B) by striking ‘‘subparagraphs (Q) and 

23 (R)’’ and inserting ‘‘subparagraphs (S), (T), 

24 and (U)’’; and 

25 (3) in paragraph (3)—
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1 (A) by striking ‘‘$28,600,000’’ and insert2 ing ‘‘$58,500,000’’; and 

3 (B) by striking ‘‘(R)’’ and inserting ‘‘(U)’’. 

4 (g) HOLD HARMLESS.—Section 326(g) (20 U.S.C. 

5 1063b(g)) is amended by striking ‘‘1998’’ and inserting 

6 ‘‘2004’’. 

7 SEC. 304. TECHNICAL AMENDMENTS. 

8 (a) AMENDMENTS.—Title III is further amended—

9 (1) in section 311(c) (20 U.S.C. 1057(c))—

10 (A) by redesignating paragraphs (7) 

11 through (12) as paragraphs (8) through (13), 

12 respectively; and 

13 (B) by inserting after paragraph (6) the 

14 following: 

15 ‘‘(7) Education or counseling services designed 

16 to improve the financial literacy and economic lit17 eracy of students and, as appropriate, their par18 ents.’’; 

19 (2) in section 312(b)(1)(F) (20 U.S.C. 

20 1058(b)(1)(F)), by inserting ‘‘which is’’ before ‘‘lo21 cated’’; 

22 (3) in section 312(b)(1) (20 U.S.C. 

23 1058(b)(1)), by redesignating subparagraphs (E) 

24 and (F) as subparagraphs (F) and (G), respectively, 
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1 and by inserting after subparagraph (D) the fol2 lowing new subparagraph: 

3 ‘‘(E) which provides a program that is not 

4 less than a 2-year educational program that is 

5 acceptable for full credit toward a bachelor’s de6 gree;’’; 

7 (4) in section 316(b)(3) (20 U.S.C. 

8 1059c(b)(3)), by striking ‘‘give’’ and inserting 

9 ‘‘given’’; 

10 (5) in section 316(c)(2) (20 U.S.C. 

11 1059c(c)(2))—

12 (A) by redesignating subparagraphs (G) 

13 through (M) (as redesignated by section 

14 301(b)(2) of this Act) as subparagraphs (H) 

15 through (N), respectively; 

16 (B) by inserting after subparagraph (F) 

17 the following: 

18 ‘‘(G) education or counseling services de19 signed to improve the financial literacy and eco20 nomic literacy of students and, as appropriate, 

21 their parents;’’; and 

22 (C) in subparagraph (N), as redesignated 

23 by subparagraph (A), by striking ‘‘subpara24 graphs (A) through (K)’’ and inserting ‘‘sub25 paragraphs (A) through (M)’’; 
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1 (6) in section 317(c)(2) (20 U.S.C. 

2 1059d(c)(2))—

3 (A) in subparagraph (G), by striking 

4 ‘‘and’’ after the semicolon; 

5 (B) in subparagraph (H), by striking the 

6 period at the end and inserting ‘‘; and’’; and 

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

8 ‘‘(I) education or counseling services de9 signed to improve the financial literacy and eco10 nomic literacy of students and, as appropriate, 

11 their parents.’’; 

12 (7) in section 323(a) (20 U.S.C. 1062(a))—

13 (A) by striking ‘‘section 360(a)(2)’’ and in14 serting ‘‘399(a)(2)’’; 

15 (B) by redesignating paragraphs (7) 

16 through (12) as paragraphs (8) through (13), 

17 respectively; and 

18 (C) by inserting after paragraph (6) the 

19 following: 

20 ‘‘(7) Education or counseling services designed 

21 to improve the financial literacy and economic lit22 eracy of students and, as appropriate, their par23 ents.’’; 
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1 (8) in section 324(d)(2) (20 U.S.C. 

2 1063(d)(2)), by striking ‘‘section 360(a)(2)(A)’’ and 

3 inserting ‘‘section 399(a)(2)(A)’’; 

4 (9) in section 326(e)(1) (20 U.S.C. 

5 1063b(e)(1)), in the matter preceding subparagraph 

6 (A), by inserting a colon after ‘‘the following’’; 

7 (10) in section 327(b) (20 U.S.C. 1063c(b)), by 

8 striking ‘‘initial’’; 

9 (11) in section 342(5)(C) (20 U.S.C. 

10 1066a(5)(C))—

11 (A) by inserting a comma after ‘‘equip12 ment’’ the first place it appears; and 

13 (B) by striking ‘‘technology,,’’ and insert14 ing ‘‘technology,’’; 

15 (12) in section 343(e) (20 U.S.C. 1066b(e)), by 

16 inserting after the subsection designation the fol17 lowing: ‘‘SALE OF QUALIFIED BONDS.—’’; 

18 (13) in section 351(a) (20 U.S.C. 1067a(a)), by 

19 striking ‘‘of 1979’’; and 

20 (14) in section 396 (20 U.S.C. 1068e), by strik21 ing ‘‘section 360’’ and inserting ‘‘section 399’’. 

22 (b) REPEAL.—Section 1024 (20 U.S.C. 1135b–3), as 

23 transferred by section 301(a)(5) of the Higher Education 

24 Amendments of 1998 (Public Law 105–244; 112 Stat. 

25 1636), is repealed. 
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1 SEC. 305. TITLE III AUTHORIZATIONS. 

2 Section 399(a) (20 U.S.C. 1068h(a)) is amended—

3 (1) by striking ‘‘1999’’ each place it appears 

4 and inserting ‘‘2005’’; 

5 (2) by striking ‘‘4 succeeding fiscal years’’ each 

6 place it appears and inserting ‘‘5 succeeding fiscal 

7 years’’; 

8 (3) in paragraph (1)—

9 (A) by striking ‘‘$10,000,000’’ in subpara10 graph (B) and inserting ‘‘$23,800,000’’; and 

11 (B) by striking ‘‘$5,000,000’’ in subpara12 graph (C) and inserting ‘‘$11,000,000’’; 

13 (4) in paragraph (2)—

14 (A) by striking ‘‘$135,000,000’’ in sub15 paragraph (A) and inserting ‘‘$241,000,000’’; 

16 and 

17 (B) by striking ‘‘$35,000,000’’ in subpara18 graph (B) and inserting ‘‘$59,000,000’’; and 

19 (5) in paragraph (4), by striking ‘‘$110,000’’ 

20 and inserting ‘‘$212,000’’. 

21 TITLE IV—STUDENT ASSISTANCE 

22 PART A—GRANTS TO STUDENTS 

23 SEC. 401. PELL GRANTS. 

24 (a) EXTENSION OF AUTHORITY.—Section 401(a) (20 

25 U.S.C. 1070a(a)) is amended by striking ‘‘2004’’ and in26 serting ‘‘2011’’. 
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1 (b) DIRECT PAYMENT.—Section 401(a) (20 U.S.C. 

2 1070a(a)) is further amended—

3 (1) by striking paragraph (2); and 

4 (2) by redesignating paragraph (3) as para5 graph (2). 

6 (c) MAXIMUM GRANT EXTENSION.—Paragraph 

7 (2)(A) of section 401(b) (20 U.S.C. 1070a(b)(2)(A)) is 

8 amended to read as follows: 

9 ‘‘(2)(A) The amount of the Federal Pell Grant for 

10 a student eligible under this part shall be $5,800 for aca11 demic years 2005–2006 through 2010–2011, less an 

12 amount equal to the amount determined to be the expected 

13 family contribution with respect to that student for that 

14 year.’’. 

15 (d) TUITION SENSITIVITY.—Section 401(b) is further 

16 amended—

17 (1) by striking paragraph (3); and 

18 (2) by redesignating paragraphs (4) through 

19 (8) as paragraphs (3) through (7), respectively. 

20 (e) MULTIPLE GRANTS.—Paragraph (5) of section 

21 401(b) (as redesignated by subsection (d)(2)) is amended 

22 to read as follows: 

23 ‘‘(5) YEAR-ROUND PELL GRANTS.—

24 ‘‘(A) IN GENERAL.—The Secretary shall, 

25 for students enrolled full time in a bacca-
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1 laureate degree program of study at an eligible 

2 institution, award such students two Pell grants 

3 during a single award year to permit such stu4 dents to accelerate progress toward their degree 

5 objectives by enrolling in academic programs for 

6 12 months rather than 9 months. 

7 ‘‘(B) LIMITATION.—The Secretary shall 

8 limit the awarding of additional Pell grants 

9 under this paragraph in a single award year to 

10 students attending baccalaureate degree grant11 ing institutions that have a graduation rate as 

12 reported by the Integrated Postsecondary Edu13 cation Data System for the 4 preceding aca14 demic years of at least 30 percent. 

15 ‘‘(C) EVALUATION.—The Secretary shall 

16 conduct an evaluation of the program under 

17 this paragraph and submit to the Congress an 

18 evaluation report no later than October 1, 

19 2010. 

20 ‘‘(D) REGULATIONS REQUIRED.—The Sec21 retary shall promulgate regulations imple22 menting this paragraph.’’. 

23 (f) ELIGIBILITY PERIOD.—Section 401(c)(2) (20 

24 U.S.C. 1070a(c)(2)) is amended by inserting ‘‘, for not 
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1 more than one academic year,’’ after ‘‘which are deter2 mined by the institution’’ in the first sentence. 

3 (g) PELL GRANTS PLUS: ACHIEVEMENT GRANTS

4 FOR STATE SCHOLARS PROGRAM.—

5 (1) AMENDMENT.—Subpart 1 of part A of title 

6 IV is amended by inserting after section 401 (20 

7 U.S.C. 1070a) the following new section: 

8 ‘‘SEC. 401A. PELL GRANTS PLUS: ACHIEVEMENT GRANTS 

9 FOR STATE SCHOLARS. 

10 ‘‘(a) GRANTS AUTHORIZED.—From sums appro11 priated to carry out section 401, the Secretary shall estab12 lish a program to award Pell Grants Plus to students 

13 who—

14 ‘‘(1) have successfully completed a rigorous 

15 high school program of study established by a State 

16 or local educational agency in consultation with a 

17 State coalition assisted by the Center for State 

18 Scholars; 

19 ‘‘(2) are enrolled full-time in the first academic 

20 year of undergraduate education, and have not been 

21 previously enrolled in a program of undergraduate 

22 education; and 

23 ‘‘(3) are eligible to receive Federal Pell Grants 

24 for the year in which the grant is awarded. 

25 ‘‘(b) AMOUNT OF GRANTS.—
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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), the amount of the grant awarded under 

3 this section shall be $1,000. 

4 ‘‘(2) ASSISTANCE NOT TO EXCEED COST OF AT5 TENDANCE.—A grant awarded under this section to 

6 any student, in combination with the Federal Pell 

7 Grant assistance and other student financial assist8 ance available to such student, may not exceed the 

9 student’s cost of attendance. 

10 ‘‘(c) SELECTION OF RECIPIENTS.—

11 ‘‘(1) PROCEDURES ESTABLISHED BY REGULA12 TION.—The Secretary shall establish by regulation 

13 procedures for the determination of eligibility of stu14 dents for the grants awarded under this section. 

15 Such procedures shall include measures to ensure 

16 that eligibility is determined in a timely and accu17 rate manner consistent with the requirements of sec18 tion 482 and the submission of the financial aid 

19 form required by section 483. 

20 ‘‘(2) REQUIRED INFORMATION.—Each eligible 

21 student desiring an award under this section shall 

22 submit at such time and in such manner such infor23 mation as the Secretary may reasonably require. 

24 ‘‘(3) CONTINUATION OF GRANT REQUIRE25 MENTS.—In order for a student to continue to be el-
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1 igible to receive an award under this section for the 

2 second year of undergraduate education, the eligible 

3 student must—

4 ‘‘(A) maintain eligibility to receive a Fed5 eral Pell Grant for that year; 

6 ‘‘(B) obtain a grade point average of at 

7 least 3.0 (or the equivalent as determined under 

8 regulations prescribed by the Secretary) for the 

9 first year of undergraduate education; and 

10 ‘‘(C) be enrolled full-time and fulfill the re11 quirements for satisfactory progress described 

12 in section 484(c). 

13 ‘‘(d) EVALUATION, AND REPORTS.—The Secretary 

14 shall monitor the progress, retention, and completion rates 

15 of the students to whom awards are provided under this 

16 section. In doing so, the Secretary shall evaluate the im17 pact of the Pell Grants Plus Program and report, not less 

18 than biennially, to the authorizing committees of the 

19 House of Representatives and the Senate.’’. 

20 (2) CONFORMING AMENDMENT.—Chapter 3 of 

21 subpart 2 of part A of title IV (20 U.S.C. 1070a–

22 31 through 1070a–35) is repealed. 

23 SEC. 402. TRIO PROGRAMS. 

24 (a) DURATION OF GRANTS.—
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1 (1) AMENDMENT.—Section 402A(b)(2) (20 

2 U.S.C. 1070a–11(b)(2)) is amended to read as fol3 lows: 

4 ‘‘(2) DURATION.—Grants or contracts awarded 

5 under this chapter shall be awarded for a period of 

6 5 years, except that—

7 ‘‘(A) grants under section 402G shall be 

8 awarded for a period of 2 years; and 

9 ‘‘(B) grants under section 402H shall be 

10 awarded for a period determined by the Sec11 retary.’’. 

12 (2) TRANSITION TO SYNCHRONOUS GRANT PE13 RIODS.—Notwithstanding section 402A(b)(2) of the 

14 Higher Education Act of 1965 (as in effect both 

15 prior to and after the amendment made by para16 graph (1) of this subsection), the Secretary of Edu17 cation may continue an award made before the date 

18 of enactment of this Act under section 402B, 402C, 

19 402D, 402E, or 402F of such Act as necessary to 

20 permit all the awards made under such a section to 

21 expire at the end of the same fiscal year, and there22 after to expire at the end of 5 years as provided in 

23 the amendment made by paragraph (1) of this sub24 section. 
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1 (b) MINIMUM GRANTS.—Section 402A(b)(3) (20 

2 U.S.C. 1070a–11(b)(3)) is amended to read as follows: 

3 ‘‘(3) MINIMUM GRANTS.—Unless the institution 

4 or agency requests a smaller amount, individual 

5 grants for programs authorized under this chapter 

6 shall be no less than $200,000, except that indi7 vidual grants for programs authorized under section 

8 402G shall be no less than $170,000.’’. 

9 (c) PRIOR EXPERIENCE; NOVICE APPLICANTS.—Sec10 tion 402A(c)(2) (20 U.S.C. 1070a–11(c)(2)) is amend11 ed—

12 (1) by striking ‘‘In making grants’’ and insert13 ing ‘‘(A) Subject to subparagraph (B), in making 

14 grants’’; and 

15 (2) by adding at the end the following new sub16 paragraph: 

17 ‘‘(B) From the amount available under sub18 section (f) for a program under this chapter (other 

19 than a program under section 402G or 402H) for 

20 any fiscal year in which the Secretary conducts a 

21 competition for the award of grants or contracts 

22 under such program, the Secretary shall reserve 10 

23 percent of such available amount for purposes of 

24 funding applications from novice applicants. If the 

25 Secretary determines that there are an insufficient 
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1 number of qualified novice applicants to utilize the 

2 amount so reserved, the Secretary shall restore the 

3 unutilized remainder of the amount reserved for use 

4 by applicants qualifying under subparagraph (A).’’. 

5 (d) APPLICATION STATUS.—Section 402A(c) (20 

6 U.S.C. 1070a–11(c)) is amended by striking paragraph 

7 (7). 

8 (e) DOCUMENTATION OF STATUS.—Section 402A(e) 

9 (20 U.S.C. 1070a–11(e)) is amended by striking ‘‘(g)(2)’’ 

10 each place it appears in paragraphs (1) and (2) and insert11 ing ‘‘(g)(4)’’. 

12 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 

13 402A(f) (20 U.S.C. 1070a–11(f)) is amended by striking 

14 ‘‘$700,000,000 for fiscal year 1999, and such sums as 

15 may be necessary for each of the 4 succeeding fiscal years’’ 

16 and inserting ‘‘$835,000,000 for fiscal year 2005 and 

17 such sums as may be necessary for each of the 5 suc18 ceeding fiscal years’’. 

19 (g) DEFINITION.—Section 402A(g) (20 U.S.C. 

20 1070a–11(g)) is amended—

21 (1) in paragraph (3), by striking ‘‘by reason of 

22 such individual’s age’’; 

23 (2) by redesignating paragraphs (1) through 

24 (4) as paragraphs (3) through (6), respectively; and 
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1 (3) by inserting before paragraph (3), as redes2 ignated, the following: 

3 ‘‘(1) DIFFERENT CAMPUS.—The term ‘different 

4 campus’ means an institutional site that—

5 ‘‘(A) is geographically apart from the main 

6 campus of the institution; 

7 ‘‘(B) is permanent in nature; and 

8 ‘‘(C) offers courses in educational pro9 grams leading to a degree, certificate, or other 

10 recognized educational credential. 

11 ‘‘(2) DIFFERENT POPULATION.—The term ‘dif12 ferent population’ means a group of individuals, with 

13 respect to whom an entity seeks to serve through an 

14 application for funding under this chapter, that—

15 ‘‘(A) is separate and distinct from any 

16 other population that the entity seeks to serve 

17 through an application for funding under this 

18 chapter; or 

19 ‘‘(B) while sharing some of the same needs 

20 as another population that the entity seeks to 

21 serve through an application for funding under 

22 this chapter, has distinct needs for specialized 

23 services.’’. 
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1 (h) EDUCATION AND COUNSELING SERVICES.—

2 Chapter 1 of subpart 2 of part A of title IV is further 

3 amended—

4 (1) in section 402B(b) (20 U.S.C. 1070a–

5 12(b))—

6 (A) by redesignating paragraphs (3) 

7 through (10) as paragraphs (4) through (11), 

8 respectively; 

9 (B) by inserting after paragraph (2) the 

10 following: 

11 ‘‘(3) education or counseling services designed 

12 to improve the financial literacy and economic lit13 eracy of students and, as appropriate, their par14 ents;’’; and 

15 (C) in paragraph (11), as redesignated by 

16 subparagraph (A), by striking ‘‘paragraphs (1) 

17 through (9)’’ and inserting ‘‘paragraphs (1) 

18 through (10)’’. 

19 (2) in section 402C (20 U.S.C. 1070a–13)—

20 (A) in subsection (b)—

21 (i) by redesignating paragraphs (2) 

22 through (12) as paragraphs (3) through 

23 (13), respectively; 

24 (ii) by inserting after paragraph (1) 

25 the following: 
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1 ‘‘(2) education or counseling services designed 

2 to improve the financial literacy and economic lit3 eracy of students and, as appropriate, their par4 ents;’’; and 

5 (iii) in paragraph (13), as redesig6 nated by clause (i), by striking ‘‘para7 graphs (1) through (11)’’ and inserting 

8 ‘‘paragraphs (1) through (12)’’; and 

9 (B) in subsection (e), by striking ‘‘sub10 section (b)(10)’’ and inserting ‘‘subsection 

11 (b)(11)’’; 

12 (3) in section 402D(b) (20 U.S.C. 1070a–

13 14(b))—

14 (A) by redesignating paragraphs (2) 

15 through (10) as paragraphs (3) through (11), 

16 respectively; 

17 (B) by inserting after paragraph (1) the 

18 following: 

19 ‘‘(2) education or counseling services designed 

20 to improve the financial literacy and economic lit21 eracy of students and, as appropriate, their par22 ents;’’; and 

23 (C) in paragraph (11), as redesignated by 

24 subparagraph (A), by striking ‘‘paragraphs (1) 
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1 through (9)’’ and inserting ‘‘paragraphs (1) 

2 through (10)’’; 

3 (4) in section 402E(b) (20 U.S.C. 1070a–

4 15(b))—

5 (A) by redesignating paragraphs (7) and 

6 (8) as paragraphs (8) and (9), respectively; and 

7 (B) by inserting after paragraph (6) the 

8 following: 

9 ‘‘(7) education or counseling services designed 

10 to improve the financial literacy and economic lit11 eracy of students and, as appropriate, their par12 ents;’’; 

13 (5) in section 402F(b) (20 U.S.C. 1070a–

14 16(b)) —

15 (A) by redesignating paragraphs (4) 

16 through (10) as paragraphs (5) through (11), 

17 respectively; 

18 (B) by inserting after paragraph (3) the 

19 following: 

20 ‘‘(4) education or counseling services designed 

21 to improve the financial literacy and economic lit22 eracy of students and, as appropriate, their par23 ents;’’; and 

24 (C) in paragraph (11), as redesignated by 

25 subparagraph (A), by striking ‘‘paragraphs (1) 
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1 through (9)’’ and inserting ‘‘paragraphs (1) 

2 through (10)’’. 

3 (i) MAXIMUM STIPENDS.—Section 402C(e) (20 

4 U.S.C. 1070a–13(e)) is amended—

5 (1) by striking ‘‘$60’’ and inserting ‘‘$100’’; 

6 and 

7 (2) by striking ‘‘$40’’ and inserting ‘‘$60’’. 

8 (j) STUDENT SUPPORT SERVICES.—Section 

9 402D(d)(6) (20 U.S.C. 1070a–14(d)(6)) is amended—

10 (1) by striking ‘‘and’’ at the end of subpara11 graph (A); 

12 (2) by striking the period at the end of sub13 paragraph (B) and inserting ‘‘; and’’; and 

14 (3) by inserting after subparagraph (B) the fol15 lowing new subparagraph: 

16 ‘‘(C) working with other entities that serve 

17 low-income working adults to increase access to 

18 and successful progress in postsecondary edu19 cation by low-income working adults seeking 

20 their first postsecondary degree or certificate.’’. 

21 (k) POSTBACCALAUREATE ACHIEVEMENT MAXIMUM

22 STIPENDS.—Section 402E(e)(1) (20 U.S.C. 1070a–

23 15(e)(1)) is amended by striking ‘‘$2,800’’ and inserting 

24 ‘‘$5,000’’. 
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1 (l) EDUCATIONAL OPPORTUNITY CENTERS: APPLICA2 TION APPROVAL.—Section 402F(c) (20 U.S.C. 1070a–

3 16(c)) is amended—

4 (1) by striking ‘‘and’’ at the end of paragraph 

5 (2); 

6 (2) by striking the period at the end of para7 graph (3) and inserting ‘‘; and’’; and 

8 (3) by inserting after paragraph (3) the fol9 lowing new paragraph: 

10 ‘‘(4) consider the extent to which the proposed 

11 project would provide services to low-income working 

12 adults in the region to be served, in order to in13 crease access to postsecondary education by low-in14 come working adults.’’. 

15 SEC. 403. GEARUP. 

16 (a) DURATION OF AWARDS.—Section 404A(b) (20 

17 U.S.C. 1070a–21(b)) is amended—

18 (1) in paragraph (2)(B), by striking ‘‘Higher 

19 Education Amendments of 1998’’ and inserting 

20 ‘‘College Access and Opportunity Act of 2004’’; and 

21 (2) by adding at the end thereof the following 

22 new paragraph: 

23 ‘‘(3) DURATION.—An award made by the Sec24 retary under this chapter to an eligible entity de-
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1 scribed in paragraph (1) or (2) of subsection (c) 

2 shall be for the period of 6 years.’’. 

3 (b) CONTINUING ELIGIBILITY.—Section 404A (20 

4 U.S.C. 1070a–21) is amended by adding at the end the 

5 following new subsection: 

6 ‘‘(d) CONTINUING ELIGIBILITY.—An eligible entity 

7 shall not cease to be an eligible entity upon the expiration 

8 of any grant under this chapter (including a continuation 

9 award).’’. 

10 (c) CONTINUITY OF SERVICE.—

11 (1) COHORT APPROACH.—Section 

12 404B(g)(1)(B) (20 U.S.C. 1070a–22(g)(1)(B)) is 

13 amended by inserting ‘‘and provide the option of 

14 continued services through the student’s first year of 

15 attendance at an eligible institution of higher edu16 cation’’ after ‘‘grade level’’. 

17 (2) EARLY INTERVENTION.—Section 404D (20 

18 U.S.C. 1070a–24) is amended—

19 (A) in subsection (b)(2)(A), by inserting 

20 ‘‘and students in the first year of attendance at 

21 an eligible institution of higher education’’ after 

22 ‘‘grade 12’’; and 

23 (B) in subsection (c), by inserting ‘‘and 

24 may consider students in their first year of at-
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1 tendance at an eligible institution who is eligi2 ble’’ after ‘‘grade 12’’. 

3 (d) COORDINATION.—Section 404C(a)(2) (20 U.S.C. 

4 1070a–23(a)(2)) is amended—

5 (1) by striking ‘‘and’’ at the end of subpara6 graph (A); 

7 (2) by redesignating subparagraph (B) as sub8 paragraph (C); and 

9 (3) by inserting after subparagraph (A) the fol10 lowing new subparagraph: 

11 ‘‘(B) describe activities for coordinating, 

12 complementing, and enhancing services under 

13 this chapter provided by other eligible entities 

14 in the State; and’’. 

15 (e) EDUCATION AND COUNSELING SERVICES.—Sec16 tion 404D(b)(2)(A)(ii) (20 U.S.C. 1070a–24(b)(2)(A)(ii)) 

17 is amended by striking ‘‘and academic counseling’’ and in18 serting ‘‘academic counseling, and financial literacy and 

19 economic literacy education or counseling’’. 

20 (f) REAUTHORIZATION.—Section 404H (20 U.S.C. 

21 1070a–28) is amended by striking ‘‘$200,000,000 for fis22 cal year 1999 and such sums as may be necessary for each 

23 of the 4 succeeding fiscal years’’ and inserting 

24 ‘‘$300,000,000 for fiscal year 2005 and such sums as may 

25 be necessary for each of the 5 succeeding fiscal years’’. 
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1 SEC. 404. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPOR2 TUNITY GRANTS. 

3 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

4 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended by strik5 ing ‘‘$675,000,000 for fiscal year 1999 and such sums 

6 as may be necessary for the 4 succeeding fiscal years’’ and 

7 inserting ‘‘$770,500,000 for fiscal year 2005 and such 

8 sums as may be necessary for the 5 succeeding fiscal 

9 years’’. 

10 (b) PHASEOUT OF ALLOCATION BASED ON PREVIOUS

11 ALLOCATIONS.—

12 (1) AMENDMENT.—Subsection (a) of section 

13 413D (20 U.S.C. 1070b–3(a)) is amended to read as 

14 follows: 

15 ‘‘(a) ALLOCATION BASED ON PREVIOUS ALLOCA16 TION.—

17 ‘‘(1) BASE GUARANTEE.—From the amount ap18 propriated pursuant to section 413A(b) for each fis19 cal year after fiscal year 2006, the Secretary shall, 

20 subject to paragraph (2), first allocate to each eligi21 ble institution an amount equal to the following per22 centage of the amount such institution received 

23 under subsection (a) of this section for fiscal year 

24 2006 (as such subsection was in effect with respect 

25 to allocations for such fiscal year): 
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1 ‘‘(A) 80 percent for fiscal years 2007 and 

2 2008; 

3 ‘‘(B) 60 percent for fiscal years 2009 and 

4 2010; 

5 ‘‘(C) 40 percent for fiscal years 2011 and 

6 2012; 

7 ‘‘(D) 20 percent for fiscal years 2013 and 

8 2014; and 

9 ‘‘(E) 0 percent for fiscal year 2015 and 

10 any succeeding fiscal year. 

11 ‘‘(2) RATABLE REDUCTIONS FOR INSUFFICIENT

12 APPROPRIATIONS.—

13 ‘‘(A) REDUCTION OF BASE GUARANTEE.—

14 If the amount appropriated for any fiscal year 

15 is less than the amount required to be allocated 

16 to all institutions under this subsection, then 

17 the amount of the allocation to each such insti18 tution shall be ratably reduced. 

19 ‘‘(B) ADDITIONAL APPROPRIATIONS ALLO20 CATION.—If additional amounts are appro21 priated for any such fiscal year, such reduced 

22 amounts shall be increased on the same basis as 

23 they were reduced (until the amount allocated 

24 equals the amount required to be allocated 

25 under this subsection). 
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1 ‘‘(3) ADDITIONAL ALLOCATIONS FOR CERTAIN

2 INSTITUTIONS.——

3 ‘‘(A) ALLOCATIONS PERMITTED.—Notwith4 standing any other provision of this section, the 

5 Secretary may allocate an amount equal to not 

6 more than 10 percent of the amount by which 

7 the amount appropriated in any fiscal year to 

8 carry out this subpart exceeds $700,000,000 

9 among eligible institutions described in sub10 paragraph (B). 

11 ‘‘(B) ELIGIBLE INSTITUTIONS.—For pur12 poses of subparagraph (A)—

13 ‘‘(i) an eligible institution that is a 4-

14 year institution may receive an allocation 

15 under subparagraph (A) if more than 50 

16 percent of the students who are degree17 seeking Pell Grant recipients attending 

18 such institution graduate within 4 calendar 

19 years of the first day of enrollment; and 

20 ‘‘(ii) an eligible institution that is a 2-

21 year institution may receive an allocation 

22 under subparagraph (A) if more than 50 

23 percent of the students who are degree24 seeking Pell Grant recipients attending 
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1 such institution graduate within 2 calendar 

2 years of the first day of enrollment.’’. 

3 (2) EFFECTIVE DATE.—The amendment made 

4 by paragraph (1) shall apply with respect to any 

5 amounts appropriated under section 413A(b) of the 

6 Higher Education Act of 1965 (20 U.S.C. 1070b(b)) 

7 for fiscal year 2007 or any succeeding fiscal year. 

8 (c) BOOKS AND SUPPLIES.—Section 413D(c)(3)(D) 

9 (20 U.S.C. 1070–3(c)(3)(D)) is amended by striking 

10 ‘‘$450’’ and inserting ‘‘$600’’. 

11 SEC. 405. LEAP. 

12 Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is 

13 amended—

14 (1) by striking ‘‘1999’’ and inserting ‘‘2005’’; 

15 and 

16 (2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 

17 succeeding’’. 

18 SEC. 406. HEP/CAMP PROGRAM. 

19 Section 418A (20 U.S.C. 1070d–2) is amended—

20 (1) in subsection (b)(1)(B)(i), by inserting ‘‘, or 

21 whose spouse’’ after ‘‘themselves’’; 

22 (2) in subsection (b)(3)(B), by inserting ‘‘, in23 cluding preparation for college entrance exams,’’ 

24 after ‘‘program’’; 
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1 (3) in subsection (b)(8), by inserting ‘‘, includ2 ing child care and transportation’’ after ‘‘supportive 

3 services’’; 

4 (4) by striking ‘‘and’’ at the end of subsection 

5 (b)(7), by striking the period at the end of sub6 section (b)(8) and inserting ‘‘; and’’, and by adding 

7 at the end of subsection (b) the following new para8 graph: 

9 ‘‘(9) follow-up activity and reporting require10 ments, except that not more than 2 percent of the 

11 funds provided under this section may be used for 

12 such purposes.’’; 

13 (5) in subsection (c)(1)(A), by inserting ‘‘, or 

14 whose spouse’’ after ‘‘themselves’’; 

15 (6) in subsection (c)(1)(B), by striking clause 

16 (i) and inserting the following: 

17 ‘‘(i) personal, academic, career, and eco18 nomic education or personal finance counseling 

19 as an ongoing part of the program;’’; 

20 (7) in subsection (c)(2)(B), by inserting ‘‘(in21 cluding mentoring and guidance of such students)’’ 

22 after ‘‘services’’; 

23 (8) in subsection (c)(2), by striking ‘‘and’’ at 

24 the end of subparagraph (A), by striking the period 

25 at the end of subparagraph (B) and inserting ‘‘; 
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1 and’’, and by adding at the end of subsection (c)(2) 

2 the following new subparagraph: 

3 ‘‘(C) for students in any program that 

4 does not award a bachelor’s degree, encour5 aging the transfer to, and persistence in, such 

6 a program, and monitoring the rate of such 

7 transfer, persistence, and completion.’’; and 

8 (9) in subsection (h)—

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

10 ‘‘$15,000,000 for fiscal year 1999 and such 

11 sums as may be necessary for each of the 4 

12 succeeding fiscal years’’ and inserting 

13 ‘‘$24,000,000 for fiscal year 2005 and such 

14 sums as may be necessary for each of the 5 

15 succeeding fiscal years’’; and 

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

17 ‘‘$5,000,000 for fiscal year 1999 and such 

18 sums as may be necessary for each of the 4 

19 succeeding fiscal years’’ and inserting 

20 ‘‘$16,000,000 for fiscal year 2005 and such 

21 sums as may be necessary for each of the 5 

22 succeeding fiscal years’’. 

23 SEC. 407. BYRD SCHOLARSHIP. 

24 Section 419K (20 U.S.C. 1070d–41) is amended—
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1 (1) by striking ‘‘1999’’ and inserting ‘‘2005’’; 

2 and 

3 (2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 

4 succeeding’’. 

5 SEC. 408. CHILD CARE ACCESS. 

6 Section 419N(g) (20 U.S.C. 1070e(g)) is amended— 

7 (1) by striking ‘‘1999’’ and inserting ‘‘2005’’; 

8 and 

9 (2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 

10 succeeding’’. 

11 SEC. 409. LEARNING ANYTIME ANYWHERE PARTNERSHIPS. 

12 (a) REPEAL.—Subpart 8 of part A of title IV (20 

13 U.S.C. 1070f—1070f–6) is repealed. 

14 (b) CONFORMING AMENDMENT.—Section 400(b) (20 

15 U.S.C. 1070(b)) is amended by striking ‘‘through 8’’ and 

16 inserting ‘‘through 7’’. 

17 SEC. 410. TECHNICAL AMENDMENTS. 

18 Part A of title IV is further amended as follows: 

19 (1) Section 419C(b)(1) (20 U.S.C. 1070d– 

20 33(b)(1)) is amended by inserting ‘‘and’’ after the 

21 semicolon at the end thereof. 

22 (2) Section 419D(d) (20 U.S.C. 1070d–34(d)) 

23 is amended by striking ‘‘Public Law 95–1134’’ and 

24 inserting ‘‘Public Law 95–134’’. 
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1 PART B—FEDERAL FAMILY EDUCATION LOAN 

2 PROGRAM 

3 SEC. 421. REAUTHORIZATION OF FEDERAL FAMILY EDU4 CATION LOAN PROGRAM. 

5 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

6 421(b)(5) (20 U.S.C. 1071(b)(5)) is amended by striking 

7 ‘‘administrative cost allowance’’ and inserting ‘‘loan proc8 essing and issuance fee’’. 

9 (b) EXTENSION OF AUTHORITY.—

10 (1) FEDERAL INSURANCE LIMITATIONS.—Sec11 tion 424(a) (20 U.S.C. 1074(a)) is amended—

12 (A) by striking ‘‘2004’’ and inserting 

13 ‘‘2011’’; and 

14 (B) by striking ‘‘2008’’ and inserting 

15 ‘‘2015’’. 

16 (2) GUARANTEED LOANS.—Section 428(a)(5) 

17 (20 U.S.C. 1078(a)(5)) is amended—

18 (A) by striking ‘‘2004’’ and inserting 

19 ‘‘2011’’; and 

20 (B) by striking ‘‘2008’’ and inserting 

21 ‘‘2015’’. 

22 (3) CONSOLIDATION LOANS.—Section 428C(e) 

23 (20 U.S.C. 1078–3(e)) is amended by striking 

24 ‘‘2004’’ and inserting ‘‘2011’’. 
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1 SEC. 422. LOAN LIMITS. 

2 (a) FEDERAL INSURANCE LIMITS.—Section 

3 425(a)(1)(A) (20 U.S.C. 1075(a)(1)(A)) is amended—

4 (1) in clause (i)(I), by striking ‘‘$2,625’’ and 

5 inserting ‘‘$3,500’’; and 

6 (2) in clause (ii)(I), by striking ‘‘$3,500’’ and 

7 inserting ‘‘$4,500’’. 

8 (b) GUARANTEE LIMITS.—Section 428(b)(1)(A) (20 

9 U.S.C. 1078(b)(1)(A)) is amended—

10 (1) in clause (i)(I), by striking ‘‘$2,625’’ and 

11 inserting ‘‘$3,500’’; and 

12 (2) in clause (ii)(I), by striking ‘‘$3,500’’ and 

13 inserting ‘‘$4,500’’. 

14 (c) COUNTING OF CONSOLIDATION LOANS AGAINST

15 LIMITS.—Section 428C(a)(3)(B) (20 U.S.C. 1078–

16 3(a)(3)(B)) is amended by adding at the end the following 

17 new clause: 

18 ‘‘(ii) Loans made under this section shall, to 

19 the extent used to discharge loans made under this 

20 title, be counted against the applicable limitations on 

21 aggregate indebtedness contained in sections 

22 425(a)(2), 428(b)(1)(B), 428H(d), 455, and 

23 464(a)(2)(B).’’. 

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

25 this section shall apply with respect to any loan made, in26 sured, or guaranteed under part B or part D of title IV 
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1 of the Higher Education Act of 1965 for which the first 

2 disbursement of principal is made on or after July 1, 

3 2006. 

4 SEC. 423. INTEREST RATES AND SPECIAL ALLOWANCES. 

5 (a) FFEL INTEREST RATE.—Section 427A (20 

6 U.S.C. 1077a(k)) is amended—

7 (1) in subsection (k)—

8 (A) by striking ‘‘, AND BEFORE JULY 1, 

9 2006’’ in the heading of such subsection; and 

10 (B) by striking ‘‘, and before July 1, 

11 2006,’’ each place it appears other than para12 graph (4); 

13 (2) by striking subsection (l); and 

14 (3) by redesignating subsections (m) and (n) as 

15 subsections (l) and (m), respectively. 

16 (b) DIRECT LOAN INTEREST RATES.—Section 

17 455(b) (20 U.S.C. 1087e(b)) is amended—

18 (1) in paragraph (6)—

19 (A) by striking ‘‘, AND BEFORE JULY 1, 

20 2006’’ in the heading of such paragraph; and 

21 (B) by striking ‘‘, and before July 1, 

22 2006,’’ each place it appears other than sub23 paragraph (D); 

24 (2) by striking paragraph (7); and 
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1 (3) by redesignating paragraphs (8) and (9) as 

2 paragraphs (7) and (8), respectively. 

3 (c) CONSOLIDATION LOANS.—

4 (1) FFEL CONSOLIDATION LOANS.—Section 

5 427A(k) (20 U.S.C. 1077a(k)) is further amended—

6 (A) by redesignating paragraph (5) as 

7 paragraph (6); and 

8 (B) by inserting after paragraph (4) the 

9 following new paragraph: 

10 ‘‘(5) VARIABLE RATE FOR CONSOLIDATION

11 LOANS.—With respect to any consolidation loan 

12 under section 428C for which the application is re13 ceived by an eligible lender on or after July 1, 2006, 

14 the applicable rate of interest shall, during any 12-

15 month period beginning on July 1 and ending on 

16 June 30, be determined on the preceding June 1 

17 and be equal to—

18 ‘‘(A) the bond equivalent rate of 91-day 

19 Treasury bills auctioned at the final auction 

20 held prior to such June 1; plus 

21 ‘‘(B) 2.3 percent, 

22 except that such rate shall not exceed 8.25 percent, 

23 and the rate determined under paragraph (3) shall 

24 apply in lieu of the rate determined under this para25 graph in the case of any such consolidation loan that 
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1 is used to repay loans each of which was made under 

2 section 428B or was a Federal Direct PLUS Loan 

3 (or both).’’. 

4 (2) DIRECT CONSOLIDATION LOANS.—Section 

5 455(b)(6) (20 U.S.C. 1087e(b)(6)) is further 

6 amended—

7 (A) by redesignating subparagraph (E) as 

8 subparagraph (F); and 

9 (B) by inserting after subparagraph (D) 

10 the following new subparagraph: 

11 ‘‘(E) VARIABLE RATE FOR CONSOLIDATION

12 LOANS.—With respect to any Federal Direct 

13 Consolidation loan for which the application is 

14 received on or after July 1, 2006, the applicable 

15 rate of interest shall, during any 12-month pe16 riod beginning on July 1 and ending on June 

17 30, be determined on the preceding June 1 and 

18 be equal to—

19 ‘‘(i) the bond equivalent rate of 91-

20 day Treasury bills auctioned at the final 

21 auction held prior to such June 1; plus 

22 ‘‘(ii) 2.3 percent, 

23 except that such rate shall not exceed 8.25 per24 cent, and the rate determined under subpara25 graph (C) shall apply in lieu of the rate deter-
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1 mined under this subparagraph in the case of 

2 any such consolidation loan that is used to 

3 repay loans each of which was made under sec4 tion 428B or was a Federal Direct PLUS Loan 

5 (or both).’’. 

6 (d) CONSOLIDATION LOAN CONFORMING AMEND7 MENT.—Section 428C(c)(1)(A)(ii) (20 U.S.C. 1078–

8 3(c)(1)(A)(ii)) is amended by striking ‘‘section 

9 427A(l)(3)’’ and inserting ‘‘section 427A(k)(5)’’. 

10 (e) CONFORMING AMENDMENTS FOR SPECIAL AL11 LOWANCES.—

12 (1) AMENDMENT.—Subparagraph (I) of section 

13 438(b)(2) (20 U.S.C. 1087–1(b)(2)) is amended—

14 (A) by striking clause (ii) and inserting the 

15 following: 

16 ‘‘(ii) IN SCHOOL AND GRACE PE17 RIOD.—In the case of any loan for which 

18 the first disbursement is made on or after 

19 January 1, 2000, and for which the appli20 cable interest rate is described in section 

21 427A(k)(2), clause (i)(III) of this subpara22 graph shall be applied by substituting 

23 ‘1.74 percent’ for ‘2.34 percent’.’’; 

24 (B) in clause (iii)—

25 (i) by striking ‘‘or (l)(2)’’; and 
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1 (ii) by striking ‘‘, subject to clause (v) 

2 of this subparagraph’’; 

3 (C) in clause (iv)—

4 (i) by striking ‘‘or (l)(3)’’ and insert5 ing ‘‘or (k)(5)’’; and 

6 (ii) by striking ‘‘, subject to clause 

7 (vi) of this subparagraph’’; and 

8 (D) by striking clauses (v), (vi), and (vii) 

9 and inserting the following: 

10 ‘‘(v) RECAPTURE OF EXCESS INTER11 EST.—

12 ‘‘(I) EXCESS CREDITED.—With 

13 respect to a loan on which the applica14 ble interest rate is determined under 

15 section 427A(k) and for which the 

16 first disbursement of principal is 

17 made on or after July 1, 2005, if the 

18 applicable interest rate for any 3-

19 month period exceeds the special al20 lowance rate applicable to such loan 

21 under this subparagraph for such pe22 riod, then an adjustment shall be 

23 made by calculating the excess inter24 est in the amount computed under 

25 subclause (II) of this clause, and by 
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1 crediting the excess interest to the 

2 Government not less often than annu3 ally. 

4 ‘‘(II) CALCULATION OF EX5 CESS.—The amount of any adjust6 ment of interest on a loan to be made 

7 under this subsection for any quarter 

8 shall be equal to—

9 ‘‘(aa) the applicable interest 

10 rate minus the special allowance 

11 rate determined under this sub12 paragraph; multiplied by 

13 ‘‘(bb) the average daily prin14 cipal balance of the loan (not in15 cluding unearned interest added 

16 to principal) during such cal17 endar quarter; divided by 

18 ‘‘(cc) four.’’. 

19 (2) EFFECTIVE DATE.—The amendments made 

20 by this subsection shall not apply with respect to 

21 any special allowance payment made under section 

22 438 of the Higher Education Act of 1965 (20 U.S.C 

23 1087–1) before July 1, 2005. 
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1 (f) SPECIAL ALLOWANCE FOR LOANS FROM THE

2 PROCEEDS OF TAX EXEMPT ISSUES.—Section 

3 438(b)(2)(B) (20 U.S.C. 1087–1(b)(2)(B)) is amended—

4 (1) in clause (i), by striking ‘‘this division’’ and 

5 inserting ‘‘this clause’’; 

6 (2) in clause (ii), by striking ‘‘division (i) of this 

7 subparagraph’’ and inserting ‘‘clause (i) of this sub8 paragraph’’; 

9 (3) in clause (iv), by inserting ‘‘or refunded 

10 after May 5, 2004,’’ after ‘‘October 1, 1993,’’; and 

11 (4) by adding at the end the following new 

12 clause: 

13 ‘‘(v) Notwithstanding clauses (i) and (ii), the 

14 quarterly rate of the special allowance shall be the 

15 rate determined under subparagraph (A), (E), (F), 

16 (G), (H), or (I) of this paragraph, or paragraph (4), 

17 as the case may be, for a holder of loans that—

18 ‘‘(I) were made or purchased with funds—

19 ‘‘(aa) obtained from the issuance of 

20 obligations the income from which is ex21 cluded from gross income under the Inter22 nal Revenue Code of 1986 and which obli23 gations were originally issued before Octo24 ber 1, 1993; or 
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1 ‘‘(bb) obtained from collections or de2 fault reimbursements on, or interests or 

3 other income pertaining to, eligible loans 

4 made or purchased with funds described in 

5 division (aa), or from income on the invest6 ment of such funds; and 

7 ‘‘(II) were—

8 ‘‘(aa) financed by such an obligation 

9 that has matured, or been retired or 

10 defeased; 

11 ‘‘(bb) refinanced after May 5, 2004, 

12 with funds obtained from a source other 

13 than funds described in subclause (I) of 

14 this clause; or 

15 ‘‘(cc) sold or transferred to any other 

16 holder.’’. 

17 SEC. 424. ADDITIONAL LOAN TERMS AND CONDITIONS. 

18 (a) DISBURSEMENT.—Section 428(b)(1)(N) (20 

19 U.S.C. 1078(b)(1)(N)(ii)) is amended—

20 (1) by striking ‘‘or’’ at the end of clause (i); 

21 and 

22 (2) by striking clause (ii) and inserting the fol23 lowing: 

24 ‘‘(ii) in the case of a student who is 

25 studying outside the United States in a 
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1 program of study abroad that is approved 

2 for credit by the home institution at which 

3 such student is enrolled, are, at the re4 quest of the student, disbursed directly to 

5 the student by the means described in 

6 clause (i), unless such student requests 

7 that the check be endorsed, or the funds 

8 transfer authorized, pursuant to an au9 thorized power-of-attorney; or 

10 ‘‘(iii) in the case of a student who is 

11 studying outside the United States in a 

12 program of study at an eligible foreign in13 stitution, are, at the request of the foreign 

14 institution, disbursed directly to the stu15 dent by the means described in clause 

16 (i).’’. 

17 (b) REPAYMENT PLANS.—

18 (1) FFEL LOANS.—Section 428(b)(9)(A) (20 

19 U.S.C. 1078(b)(9)(A)) is amended—

20 (A) by inserting before the semicolon at 

21 the end of clause (ii) the following: ‘‘, and the 

22 Secretary may not restrict the proportions or 

23 ratios by which such payments may be grad24 uated with the informed agreement of the bor25 rower’’; 
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1 (B) by striking ‘‘and’’ at the end of clause 

2 (iii); 

3 (C) by redesignating clause (iv) as clause 

4 (v); and 

5 (D) by inserting after clause (iii) the fol6 lowing new clause: 

7 ‘‘(iv) a delayed repayment plan under 

8 which the borrower makes scheduled pay9 ments for not more than 2 years that are 

10 annually not less than the amount of inter11 est due or $300, whichever is greater, and 

12 then makes payments in accordance with 

13 clause (i), (ii), or (iii); and’’. 

14 (2) DIRECT LOANS.—Section 455(d)(1) (20 

15 U.S.C. 1087e(d)(1)) is amended—

16 (A) by redesignating subparagraph (D) as 

17 subparagraph (E); and 

18 (B) by striking subparagraphs (A), (B), 

19 and (C) and inserting the following: 

20 ‘‘(A) a standard repayment plan, con21 sistent with subsection (a)(1) of this section 

22 and with section 428(b)(9)(A)(i); 

23 ‘‘(B) a graduated repayment plan, con24 sistent with section 428(b)(9)(A)(ii); 
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1 ‘‘(C) an extended repayment plan, con2 sistent with section 428(b)(9)(A)(iv), except 

3 that the borrower shall annually repay a min4 imum amount determined by the Secretary in 

5 accordance with section 428(b)(1)(L); 

6 ‘‘(D) a delayed repayment plan under 

7 which the borrower makes scheduled payments 

8 for not more than 2 years that are annually not 

9 less than the amount of interest due or $300, 

10 whichever is greater, and then makes payments 

11 in accordance with subparagraph (A), (B), or 

12 (C); and’’. 

13 (c) ORIGINATION FEES.—

14 (1) AMENDMENTS.—Paragraph (2) of section 

15 438(c) (20 U.S.C. 1087–1(c)) is amended—

16 (A) by striking the designating and head17 ing of such paragraph and inserting the fol18 lowing: 

19 ‘‘(2) AMOUNT OF ORIGINATION FEES.—

20 ‘‘(A) IN GENERAL.—’’; and 

21 (B) by adding at the end the following new 

22 subparagraphs: 

23 ‘‘(B) SUBSEQUENT REDUCTIONS.—Sub24 paragraph (A) shall be applied to loans made 
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1 under this part other than loans made under 

2 sections 428C and 439(o)—

3 ‘‘(i) by substituting ‘2.0 percent’ for 

4 ‘3.0 percent’ with respect to loans for 

5 which the first disbursement of principal is 

6 made on or after July 1, 2006, and before 

7 July 1, 2008; 

8 ‘‘(ii) by substituting ‘1.5 percent’ for 

9 ‘3.0 percent’ with respect to loans for 

10 which the first disbursement of principal is 

11 made on or after July 1, 2008, and before 

12 July 1, 2010; and 

13 ‘‘(iii) by substituting ‘1.0 percent’ for 

14 ‘3.0 percent’ with respect to loans for 

15 which the first disbursement of principal is 

16 made on or after July 1, 2010.’’. 

17 (2) CONFORMING AMENDMENT TO DIRECT

18 LOAN PROGRAM.—Subsection (c) of section 455 (20 

19 U.S.C. 1087e(c)) is amended to read as follows: 

20 ‘‘(c) LOAN FEE.—

21 ‘‘(1) IN GENERAL.—The Secretary shall charge 

22 the borrower of a loan made under this part an 

23 origination fee of 4.0 percent of the principal 

24 amount of loan. 
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1 ‘‘(2) SUBSEQUENT REDUCTIONS.—Paragraph 

2 (1) shall be applied to loans made under this part 

3 other than consolidation loans and PLUS loans—

4 ‘‘(A) by substituting ‘2.0 percent’ for ‘4.0 

5 percent’ with respect to loans for which the first 

6 disbursement of principal is made on or after 

7 July 1, 2006, and before July 1, 2008; 

8 ‘‘(B) by substituting ‘1.5 percent’ for ‘4.0 

9 percent’ with respect to loans for which the first 

10 disbursement of principal is made on or after 

11 July 1, 2008, and before July 1, 2010; and 

12 ‘‘(C) by substituting ‘1.0 percent’ for ‘4.0 

13 percent’ with respect to loans for which the first 

14 disbursement of principal is made on or after 

15 July 1, 2010.’’. 

16 SEC. 425. CONSOLIDATION LOAN CHANGES. 

17 (a) AMENDMENTS.—Section 428C (20 U.S.C. 1078–

18 3) is amended—

19 (1) in subsection (a)(3), by striking subpara20 graph (C); and 

21 (2) in subsection (b)(1)—

22 (A) by striking everything after ‘‘under 

23 this section’’ the first place it appears in sub24 paragraph (A) and inserting the following: ‘‘and 

25 that, if all the borrower’s loans under this part 
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1 are held by a single holder, the borrower has 

2 notified such holder that the borrower is seek3 ing to obtain a consolidation loan under this 

4 section;’’; 

5 (B) by striking ‘‘(i) which’’ and all that 

6 follows through ‘‘and (ii)’’ in subparagraph (C); 

7 (C) by striking ‘‘and’’ at the end of sub8 paragraph (E); 

9 (D) by redesignating subparagraph (F) as 

10 subparagraph (G); and 

11 (E) by inserting after subparagraph (E) 

12 the following new subparagraph: 

13 ‘‘(F) that the lender of the consolidation 

14 loan shall, upon application for such loan, pro15 vide the borrower with a clear and conspicuous 

16 notice of at least the following information: 

17 ‘‘(i) the effects of consolidation on 

18 total interest to be paid, fees to be paid, 

19 and length of repayment; 

20 ‘‘(ii) the effects of consolidation on a 

21 borrower’s underlying loan benefits, includ22 ing loan forgiveness, cancellation, and 

23 deferment; 

24 ‘‘(iii) the ability for the borrower to 

25 prepay the loan, pay on a shorter schedule, 
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1 and to change repayment plans, and that 

2 borrower benefit programs may vary 

3 among different loan holders; 

4 ‘‘(iv) the tax benefits for which bor5 rowers may be eligible; 

6 ‘‘(v) the consequences of default; and 

7 ‘‘(vi) that by making the application 

8 the applicant is not obligated to agree to 

9 take the consolidation loan; and’’. 

10 (b) EFFECTIVE DATE FOR SINGLE HOLDER AMEND11 MENT.—The amendment made by subsection (a)(2)(A) 

12 shall apply with respect to any loan made under section 

13 428C of the Higher Education Act of 1965 (20 U.S.C. 

14 1078–3) for which the application is received by an eligible 

15 lender on or after July 1, 2006. 

16 (c) CONFORMING AMENDMENTS TO DIRECT LOAN

17 PROGRAM.—

18 (1) PARALLEL TERMS, CONDITIONS, BENEFITS, 

19 AND AMOUNTS.—Section 455(a)(1) (20 U.S.C. 

20 1087e(a)(1)) is amended by inserting ‘‘428C,’’ after 

21 ‘‘428B,’’. 

22 (2) DISCLOSURE.—Section 455(g) (20 U.S.C. 

23 1087e(g)) is amended by adding at the end the fol24 lowing new sentences: ‘‘The Secretary, upon applica-
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1 tion for such a loan, shall comply with the require2 ments applicable to a lender under 428C(b)(1)(F).’’

3 SEC. 426. UNSUBSIDIZED STAFFORD LOANS. 

4 (a) AMENDMENT.—Section 428H(d)(2)(C) (20 

5 U.S.C. 1078–8(d)(2)(C)) is amended by striking 

6 ‘‘$10,000’’ and inserting ‘‘$12,000’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 subsection (a) shall apply to loans for which the first dis9 bursement of principal is made on or after July 1, 2006. 

10 SEC. 427. TEACHER RECRUITMENT AND RETENTION. 

11 (a) INCREASED QUALIFIED LOAN AMOUNTS.—

12 (1) FFEL LOANS.—Section 428J(c) (20 U.S.C. 

13 1078–10(c)) is amended by adding at the end the 

14 following new paragraph: 

15 ‘‘(3) INCREASED AMOUNTS FOR TEACHERS IN

16 MATHEMATICS, SCIENCE, OR SPECIAL EDUCATION, 

17 AND READING SPECIALISTS.—

18 ‘‘(A) SERVICE QUALIFYING FOR IN19 CREASED AMOUNTS.—Notwithstanding the 

20 amount specified in paragraph (1), the aggre21 gate amount that the Secretary shall repay 

22 under this section shall not be more than 

23 $17,500 in the case of—

24 ‘‘(i) a secondary school teacher—
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1 ‘‘(I) who meets the requirements 

2 of subsection (b), subject to subpara3 graph (D) of this paragraph; and 

4 ‘‘(II) whose qualifying employ5 ment for purposes of such subsection 

6 has been teaching mathematics or 

7 science on a full-time basis; 

8 ‘‘(ii) an elementary or secondary 

9 school teacher—

10 ‘‘(I) who meets the requirements 

11 of subsection (b), subject to subpara12 graph (D) of this paragraph; 

13 ‘‘(II) whose qualifying employ14 ment for purposes of such subsection 

15 has been as a special education teach16 er whose primary responsibility is to 

17 provide special education to children 

18 with disabilities (as those terms are 

19 defined in section 602 of the Individ20 uals with Disabilities Act); and 

21 ‘‘(III) who, as certified by the 

22 chief administrative officer of the pub23 lic or nonprofit private elementary or 

24 secondary school in which the bor25 rower is employed, is teaching chil-
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1 dren with disabilities that correspond 

2 with the borrower’s special education 

3 training and has demonstrated knowl4 edge and teaching skills in the content 

5 areas of the elementary or secondary 

6 school curriculum that the borrower is 

7 teaching; and 

8 ‘‘(iii) an elementary or secondary 

9 school teacher who primarily teaches read10 ing and—

11 ‘‘(I) who meets the requirements 

12 of subsection (b), subject to subpara13 graph (D) of this paragraph; 

14 ‘‘(II) who has obtained a sepa15 rate reading instruction credential 

16 from the State in which the teacher is 

17 employed; and 

18 ‘‘(III) who is certified by the 

19 chief administrative officer of the pub20 lic or nonprofit private elementary or 

21 secondary school in which the bor22 rower is employed to teach reading—

23 ‘‘(aa) as being proficient in 

24 teaching the essential compo25 nents of reading instruction as 
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1 defined in section 1208 of the El2 ementary and Secondary Edu3 cation Act of 1965; and 

4 ‘‘(bb) as having such creden5 tial. 

6 ‘‘(B) ACCELERATED PAYMENT.—Notwith7 standing the requirements of subsection (b)(1) 

8 and paragraph (1) of this subsection that 5 

9 consecutive complete years of service have been 

10 completed prior to the receipt of loan forgive11 ness, in the case of service described in sub12 paragraph (A) of this paragraph, the Secretary 

13 shall repay a portion of a borrower’s loan obli14 gation outstanding at the commencement of the 

15 qualifying service under this subsection, not to 

16 exceed a total of $17,500, in the following in17 crements: 

18 ‘‘(i) up to $1,750, or 10 percent of 

19 such outstanding loan obligation, which20 ever is less, at the completion of the second 

21 year of such service; 

22 ‘‘(ii) up to $2,625, or 15 percent of 

23 such outstanding loan obligation, which24 ever is less, at the completion of the third 

25 year of such service; 
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1 ‘‘(iii) up to $4,375, or 25 percent of 

2 such outstanding loan obligation, which3 ever is less, at the completion of the fourth 

4 year of such service; and 

5 ‘‘(iv) up to $8,750, or 50 percent of 

6 such outstanding loan obligation, which7 ever is less, at the completion of the fifth 

8 year of such service. 

9 ‘‘(C) PROMISE TO COMPLETE SERVICE RE10 QUIRED FOR ACCELERATED PAYMENT.—Any 

11 borrower who receives accelerated payment 

12 under this paragraph shall enter into an agree13 ment to continue in the qualifying service for 

14 not less than 5 consecutive complete school 

15 years, or, upon a failure to complete such 5 

16 years, to repay the United States, in accordance 

17 with regulations prescribed by the Secretary, 

18 the amount of the loans repaid by the Secretary 

19 under this paragraph, together with interest 

20 thereon and, to the extent required in such reg21 ulations, the reasonable costs of collection. Such 

22 regulations may provide for waiver by the Sec23 retary of such repayment obligations upon proof 

24 of economic hardship as specified in such regu25 lations. 
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1 ‘‘(D) HIGHER POVERTY ENROLLMENT RE2 QUIRED.—In order to qualify for an increased 

3 repayment amount under this paragraph, sec4 tion 465(a)(2)(A) shall, for purposes of sub5 section (b)(1)(A) of this section, be applied by 

6 substituting ‘40 percent of the total enrollment’ 

7 for ‘30 percent of the total enrollment’.’’. 

8 (2) DIRECT LOANS.—Section 460(c) (20 U.S.C. 

9 1087j(c)) is amended by adding at the end the fol10 lowing new paragraph: 

11 ‘‘(3) INCREASED AMOUNTS FOR TEACHERS IN

12 MATHEMATICS, SCIENCE, OR SPECIAL EDUCATION, 

13 AND READING SPECIALISTS.—

14 ‘‘(A) SERVICE QUALIFYING FOR IN15 CREASED AMOUNTS.—Notwithstanding the 

16 amount specified in paragraph (1), the aggre17 gate amount that the Secretary shall repay 

18 under this section shall not be more than 

19 $17,500 in the case of—

20 ‘‘(i) a secondary school teacher—

21 ‘‘(I) who meets the requirements 

22 of subsection (b)(1), subject to sub23 paragraph (D) of this paragraph; and 

24 ‘‘(II) whose qualifying employ25 ment for purposes of such subsection 
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1 has been teaching mathematics or 

2 science on a full-time basis; 

3 ‘‘(ii) an elementary or secondary 

4 school teacher—

5 ‘‘(I) who meets the requirements 

6 of subsection (b)(1), subject to sub7 paragraph (D) of this paragraph; 

8 ‘‘(II) whose qualifying employ9 ment for purposes of such subsection 

10 has been as a special education teach11 er whose primary responsibility is to 

12 provide special education to children 

13 with disabilities (as those terms are 

14 defined in section 602 of the Individ15 uals with Disabilities Act); and 

16 ‘‘(III) who, as certified by the 

17 chief administrative officer of the pub18 lic or nonprofit private elementary or 

19 secondary school in which the bor20 rower is employed, is teaching chil21 dren with disabilities that correspond 

22 with the borrower’s special education 

23 training and has demonstrated knowl24 edge and teaching skills in the content 

25 areas of the elementary or secondary 
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1 school curriculum that the borrower is 

2 teaching; and 

3 ‘‘(iii) an elementary or secondary 

4 school teacher who primarily teaches read5 ing and—

6 ‘‘(I) who meets the requirements 

7 of subsection (b), subject to subpara8 graph (D) of this paragraph; 

9 ‘‘(II) who has obtained a sepa10 rate reading instruction credential 

11 from the State in which the teacher is 

12 employed; and 

13 ‘‘(III) who is certified by the 

14 chief administrative officer of the pub15 lic or nonprofit private elementary or 

16 secondary school in which the bor17 rower is employed to teach reading—

18 ‘‘(aa) as being proficient in 

19 teaching the essential compo20 nents of reading instruction as 

21 defined in section 1208 of the El22 ementary and Secondary Edu23 cation Act of 1965; and 

24 ‘‘(bb) as having such creden25 tial. 
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1 ‘‘(B) ACCELERATED PAYMENT.—Notwith2 standing the requirements of subsection 

3 (b)(1)(A) and paragraph (1) of this subsection 

4 that 5 consecutive complete years of service 

5 have been completed prior to the receipt of loan 

6 forgiveness, in the case of service described in 

7 subparagraph (A) of this paragraph, the Sec8 retary shall repay a portion of a borrower’s loan 

9 obligation outstanding at the commencement of 

10 the qualifying service under this subsection, not 

11 to exceed a total of $17,500, in the following in12 crements: 

13 ‘‘(i) up to $1,750, or 10 percent of 

14 such outstanding loan obligation, which15 ever is less, at the completion of the second 

16 year of such service; 

17 ‘‘(ii) up to $2,625, or 15 percent of 

18 such outstanding loan obligation, which19 ever is less, at the completion of the third 

20 year of such service; 

21 ‘‘(iii) up to $4,375, or 25 percent of 

22 such outstanding loan obligation, which23 ever is less, at the completion of the fourth 

24 year of such service; and 
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1 ‘‘(iv) up to $8,750, or 50 percent of 

2 such outstanding loan obligation, which3 ever is less, at the completion of the fifth 

4 year of such service. 

5 ‘‘(C) PROMISE TO COMPLETE SERVICE RE6 QUIRED FOR ACCELERATED PAYMENT.—Any 

7 borrower who receives accelerated payment 

8 under this paragraph shall enter into an agree9 ment to continue in the qualifying service for 

10 not less than 5 consecutive complete school 

11 years, or, upon a failure to complete such 5 

12 years, to repay the United States, in accordance 

13 with regulations prescribed by the Secretary, 

14 the amount of the loans repaid by the Secretary 

15 under this paragraph, together with interest 

16 thereon and, to the extent required in such reg17 ulations, the reasonable costs of collection. Such 

18 regulations may provide for waiver by the Sec19 retary of such repayment obligations upon proof 

20 of economic hardship as specified in such regu21 lations. 

22 ‘‘(D) HIGHER POVERTY ENROLLMENT RE23 QUIRED.—In order to qualify for an increased 

24 repayment amount under this paragraph, sec25 tion 465(a)(2)(A) shall, for purposes of sub-
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1 section (b)(1)(A)(i) of this section, be applied 

2 by substituting ‘40 percent of the total enroll3 ment’ for ‘30 percent of the total enrollment’.’’. 

4 (b) IMPLEMENTING HIGHLY QUALIFIED TEACHER

5 REQUIREMENTS.—

6 (1) AMENDMENTS.—

7 (A) FFEL LOANS.—Section 428J(b)(1) 

8 (20 U.S.C. 1078–10(b)(1)) is amended—

9 (i) by inserting ‘‘and’’ after the semi10 colon at the end of subparagraph (A); and 

11 (ii) by striking subparagraphs (B) and 

12 (C) and inserting the following: 

13 ‘‘(B) if employed as an elementary or sec14 ondary school teacher, is highly qualified as de15 fined in section 9101(23) of the Elementary 

16 Secondary Education Act of 1965; and’’. 

17 (B) DIRECT LOANS.—Section 460(b)(1)(A) 

18 (20 U.S.C. 1087j(b)(1)(A)) is amended—

19 (i) by inserting ‘‘and’’ after the semi20 colon at the end of clause (i); and 

21 (ii) by striking clauses (ii) and (iii) 

22 and inserting the following: 

23 ‘‘(ii) if employed as an elementary or 

24 secondary school teacher, is highly quali25 fied as defined in section 9101(23) of the 
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1 Elementary Secondary Education Act of 

2 1965; and’’. 

3 (2) TRANSITION RULE.—

4 (A) RULE.—The amendments made by 

5 paragraph (1) of this subsection to sections 

6 428J(b)(1) and 460(b)(1)(A) of the Higher 

7 Education Act of 1965 shall not be applied to 

8 disqualify any individual who, before the date of 

9 enactment of this Act, commenced service that 

10 met and continues to meet the requirements of 

11 such sections as in effect before such date of 

12 enactment. 

13 (B) RULE NOT APPLICABLE TO INCREASED

14 QUALIFIED LOAN AMOUNTS.—Subparagraph 

15 (A) of this paragraph shall not apply for pur16 poses of obtaining increased qualified loan 

17 amounts under sections 428J(b)(3) and 

18 460(b)(3) of the Higher Education Act of 1965 

19 as added by subsection (a) of this section. 

20 (c) INFORMATION ON BENEFITS TO RURAL SCHOOL

21 DISTRICTS.—The Secretary shall—

22 (1) notify local educational agencies eligible to 

23 participate in the Small Rural Achievement Program 

24 authorized under subpart 1 of part B of title VI of 

25 the Elementary and Secondary Education Act of 
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1 1965 of the benefits available under the amendments 

2 made by this section; and 

3 (2) encourage such agencies to notify their 

4 teachers of such benefits. 

5 SEC. 428. ADDITIONAL ADMINISTRATIVE PROVISIONS. 

6 (a) TREATMENT OF EXEMPT CLAIMS.—

7 (1) INSURANCE COVERAGE.—Section 

8 428(b)(1)(G) (20 U.S.C. 1078(b)(1)(G)) is amended 

9 by inserting before the semicolon at the end the fol10 lowing: ‘‘and 100 percent of the unpaid principal 

11 amount of exempt claims as defined in subsection 

12 (c)(1)(G)’’. 

13 (2) TREATMENT.—Section 428(c)(1) (20 

14 U.S.C. 1078(c)(1)) is amended—

15 (A) by redesignating subparagraph (G) as 

16 subparagraph (H), and moving such subpara17 graph 2 em spaces to the left; and 

18 (B) by inserting after subparagraph (F) 

19 the following new subparagraph: 

20 ‘‘(G)(i) Notwithstanding any other provisions of 

21 this section, in the case of exempt claims, the Sec22 retary shall apply the provisions of—

23 ‘‘(I) the fourth sentence of subparagraph 

24 (A) by substituting ‘100 percent’ for ‘95 per25 cent’; 
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1 ‘‘(II) subparagraph (B)(i) by substituting 

2 ‘100 percent’ for ‘85 percent’; and 

3 ‘‘(III) subparagraph (B)(ii) by substituting 

4 ‘100 percent’ for ‘75 percent’. 

5 ‘‘(ii) For purposes of clause (i) of this subpara6 graph, the term ‘exempt claims’ means claims with 

7 respect to loans for which it is determined that the 

8 borrower (or the student on whose behalf a parent 

9 has borrowed), without the lender’s or the institu10 tion’s knowledge at the time the loan was made, pro11 vided false or erroneous information or took actions 

12 that caused the borrower or the student to be ineli13 gible for all or a portion of the loan or for interest 

14 benefits thereon.’’. 

15 (b) DOCUMENTATION OF FORBEARANCE AGREE16 MENTS.—Section 428(c) (20 U.S.C. 1078(c)) is further 

17 amended—

18 (1) in paragraph (3)(A)(i), by striking ‘‘in writ19 ing’’; and 

20 (2) by adding at the end the following new 

21 paragraph: 

22 ‘‘(10) DOCUMENTATION OF FORBEARANCE

23 AGREEMENTS.—For the purposes of paragraph (3), 

24 the terms of forbearance agreed to by the parties 

25 shall be documented by confirming the agreement of 
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1 the borrower by notice to the borrower from the 

2 lender, and by recording the terms in the borrower’s 

3 file.’’. 

4 (c) VOLUNTARY FLEXIBLE AGREEMENTS.—Section 

5 428A (20 U.S.C. 1078–1) is amended—

6 (1) in subsection (a)(1)(B), by striking ‘‘unless 

7 the Secretary’’ and all that follows through ‘‘des8 ignated guarantor’’; 

9 (2) by striking paragraph (2) of subsection (a); 

10 (3) in paragraph (4)(B) of such subsection, by 

11 striking ‘‘and any waivers provided to other guar12 anty agencies under paragraph (2)’’; 

13 (4) by redesignating paragraphs (3) and (4) of 

14 subsection (a) as paragraphs (2) and (3), respec15 tively; and 

16 (5) by striking paragraph (3) of subsection (c) 

17 and inserting the following: 

18 ‘‘(3) NOTICE TO INTERESTED PARTIES.—Once 

19 the Secretary reaches a tentative agreement in prin20 ciple under this section, the Secretary shall publish 

21 in the Federal Register a notice that invites inter22 ested parties to comment on the proposed agree23 ment. The notice shall state how to obtain a copy of 

24 the tentative agreement in principle and shall give 

25 interested parties no less than 30 days to provide 
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1 comments. The Secretary may consider such com2 ments prior to providing the notices pursuant to 

3 paragraph (2).’’. 

4 (d) DEFAULT REDUCTION PROGRAM.—Section 

5 428F(a)(1) (20 U.S.C. 1078–6(a)(1)) is amended—

6 (1) in subparagraph (A), by striking ‘‘consecu7 tive payments for 12 months’’ and inserting ‘‘9 pay8 ments made within 20 days of the due date during 

9 10 consecutive months’’; and 

10 (2) by redesignating subparagraph (C) as sub11 paragraph (D); and 

12 (3) by inserting after subparagraph (B) the fol13 lowing new subparagraph: 

14 ‘‘(C)(i) A guaranty agency may charge and 

15 retain collection costs in an amount not to ex16 ceed 18.5 percent of the outstanding principal 

17 and interest at the time of sale of a loan reha18 bilitated under subparagraph (A). 

19 ‘‘(ii) Notwithstanding clause (i), on and 

20 after July 1, 2006, a guaranty agency that re21 habilitates a defaulted loan by making a con22 solidation loan to a borrower under section 

23 428C(a)(3)(A)(ii)(III) may not charge and re24 tain collection costs in an amount in excess of 
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1 10 percent of the outstanding principal and in2 terest of the defaulted loans being consolidated. 

3 ‘‘(iii) For any year beginning on or after 

4 July 1, 2009, the total principal and interest of 

5 loans that a guaranty agency rehabilitates by 

6 making consolidation loans to borrowers under 

7 such section shall not exceed 45 percent of the 

8 total loans rehabilitated under subparagraph 

9 (A).’’. 

10 (e) FINANCIAL AND ECONOMIC LITERACY.—

11 (1) DEFAULT REDUCTION PROGRAM.—Section 

12 428F is further amended by adding at the end the 

13 following: 

14 ‘‘(c) FINANCIAL AND ECONOMIC LITERACY.—Where 

15 appropriate, each program described under subsection (b) 

16 shall include making available financial and economic edu17 cation materials for the borrower.’’. 

18 (2) PROGRAM ASSISTANCE FOR BORROWERS.—

19 Section 432(k)(1) (20 U.S.C. 1082(k)(1)) is amend20 ed by striking ‘‘and offering’’ and all that follows 

21 through the period and inserting ‘‘, offering loan re22 payment matching provisions as part of employee 

23 benefit packages, and providing employees with fi24 nancial and economic education and counseling.’’. 
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1 (f) CREDIT BUREAU ORGANIZATION AGREE2 MENTS.—Section 430A(a) (20 U.S.C. 1080a(a)) is 

3 amended by striking ‘‘agreements with credit bureau orga4 nizations’’ and inserting ‘‘an agreement with each national 

5 credit bureau organization (as described in section 603(p) 

6 of the Fair Credit Reporting Act)’’. 

7 (g) UNIFORM ADMINISTRATIVE AND CLAIMS PROCE8 DURE.—Section 432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) 

9 is amended by inserting ‘‘and anticipated graduation 

10 date’’ after ‘‘status change’’. 

11 (h) DEFAULT REDUCTION MANAGEMENT.—Section 

12 432 is further amended—

13 (1) by striking subsection (n); and 

14 (2) by redesignating subsections (o) and (p) as 

15 subsections (n) and (o), respectively. 

16 (i) SCHOOL AS LENDER.—Section 435(d)(2) (20 

17 U.S.C. 1085(d)(2)) is amended by striking subparagraphs 

18 (C) through (F) and the material following subparagraph 

19 (F) and inserting the following: 

20 ‘‘(C) shall not make a loan, other than a 

21 loan made under section 428 or 428H to a 

22 graduate or professional student, unless the 

23 borrower has previously received a loan from 

24 the school, and shall not make a loan to a bor25 rower who is not enrolled at that institution; 
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1 ‘‘(D) shall not have a cohort default rate 

2 (as defined in section 435(m)) greater than 15 

3 percent; and 

4 ‘‘(E) shall use the proceeds from special al5 lowance payments and interest payments from 

6 borrowers, and any proceeds from the sale or 

7 other disposition of loans, for need-based grant 

8 programs, except for reasonable reimbursement 

9 for direct administrative expenses.’’. 

10 (j) DISABILITY DETERMINATIONS.—Section 437(a) 

11 (20 U.S.C. 1087(a)) is amended by adding at the end the 

12 following new sentence: ‘‘In making such determination of 

13 permanent and total disability, the Secretary shall provide 

14 that a borrower who has been certified as permanently and 

15 totally disabled by the Department of Veterans Affairs or 

16 the Social Security Administration shall not be required 

17 to present further documentation for purposes of this 

18 title.’’. 

19 (k) TREATMENT OF FALSELY CERTIFIED BOR20 ROWERS.—Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is 

21 amended by inserting ‘‘or parent’s eligibility’’ after ‘‘such 

22 student’s eligibility’’. 

23 (l) PERFECTION OF SECURITY INTERESTS.—Section 

24 439(d) (20 U.S.C. 1087–2(d)) is amended—

25 (1) by striking paragraph (3); and 
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1 (2) by redesignating paragraphs (4) and (5) as 

2 paragraphs (3) and (4), respectively. 

3 (m) ADDITIONAL TECHNICAL AMENDMENTS.—

4 (1) Section 428(a)(2)(A) (20 U.S.C. 

5 1078(a)(2)(A)) is amended—

6 (A) by striking ‘‘and’’ at the end of sub7 clause (II) of clause (i); and 

8 (B) by moving the margin of clause (iii) 

9 two ems to the left. 

10 (2) Section 428H(e) (20 U.S.C. 1078–8(e)) is 

11 amended—

12 (A) by striking paragraph (6); and 

13 (B) by redesignating paragraph (7) as 

14 paragraph (6). 

15 (3) Section 428I(g) (20 U.S.C. 1078–9(g)) is 

16 amended by striking ‘‘Code,’’ and inserting ‘‘Code’’. 

17 (4) Section 432(m)(1)(B) (20 U.S.C. 

18 1082(m)(1)(B)) is amended—

19 (A) in clause (i), by inserting ‘‘and’’ after 

20 the semicolon at the end; and 

21 (B) in clause (ii), by striking ‘‘; and’’ and 

22 inserting a period. 

23 PART C—FEDERAL WORK-STUDY PROGRAMS 

24 SEC. 441. AUTHORIZATION OF APPROPRIATIONS. 

25 Section 441(b) (42 U.S.C. 2751(b)) is amended—
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1 (1) by striking ‘‘1999’’ and inserting ‘‘2005’’; 

2 and 

3 (2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 

4 succeeding’’. 

5 SEC. 442. COMMUNITY SERVICE. 

6 Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended 

7 by striking ‘‘that are open and accessible to the commu8 nity’’. 

9 SEC. 443. ALLOCATION OF FUNDS. 

10 (a) PHASEOUT OF ALLOCATION BASED ON PREVIOUS

11 ALLOCATIONS.—Subsection (a) of section 442(a) (42 

12 U.S.C. 2752(a)) is amended to read as follows: 

13 ‘‘(a) ALLOCATION BASED ON PREVIOUS ALLOCA14 TION.—

15 ‘‘(1) BASE GUARANTEE.—From the amount ap16 propriated pursuant to section 441(b) for each fiscal 

17 year after fiscal year 2006, the Secretary shall, sub18 ject to paragraph (2), first allocate to each eligible 

19 institution an amount equal to the following percent20 age of the amount such institution received under 

21 subsection (a) of this section for fiscal year 2006 (as 

22 such subsection was in effect with respect to alloca23 tions for such fiscal year): 

24 ‘‘(A) 80 percent for fiscal years 2007 and 

25 2008; 
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1 ‘‘(B) 60 percent for fiscal years 2009 and 

2 2010; 

3 ‘‘(C) 40 percent for fiscal years 2011 and 

4 2012; 

5 ‘‘(D) 20 percent for fiscal years 2013 and 

6 2014; and 

7 ‘‘(E) 0 percent for fiscal year 2015 and 

8 any succeeding fiscal year. 

9 ‘‘(2) RATABLE REDUCTIONS FOR INSUFFICIENT

10 APPROPRIATIONS.—

11 ‘‘(A) REDUCTION OF BASE GUARANTEE.—

12 If the amount appropriated for any fiscal year 

13 is less than the amount required to be allocated 

14 to all institutions under this subsection, then 

15 the amount of the allocation to each such insti16 tution shall be ratably reduced. 

17 ‘‘(B) ADDITIONAL APPROPRIATIONS ALLO18 CATION.—If additional amounts are appro19 priated for any such fiscal year, such reduced 

20 amounts shall be increased on the same basis as 

21 they were reduced (until the amount allocated 

22 equals the amount required to be allocated 

23 under this subsection). 

24 ‘‘(3) ADDITIONAL ALLOCATIONS FOR CERTAIN

25 INSTITUTIONS.—
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1 ‘‘(A) ALLOCATIONS PERMITTED.—Notwith2 standing any other provision of this section, the 

3 Secretary may allocate an amount equal to not 

4 more than 10 percent of the amount by which 

5 the amount appropriated in any fiscal year to 

6 carry out this part exceeds $700,000,000 

7 among eligible institutions described in sub8 paragraph (B). 

9 ‘‘(B) ELIGIBLE INSTITUTIONS.—For pur10 poses of subparagraph (A)—

11 ‘‘(i) an eligible institution that is a 4-

12 year institution may receive an allocation 

13 under subparagraph (A) if more than 50 

14 percent of the students who are degree15 seeking Pell Grant recipients attending 

16 such institution graduate within 4 calendar 

17 years of the first day of enrollment; and 

18 ‘‘(ii) an eligible institution that is a 2-

19 year institution may receive an allocation 

20 under subparagraph (A) if more than 50 

21 percent of the students who are degree22 seeking Pell Grant recipients attending 

23 such institution graduate within 2 calendar 

24 years of the first day of enrollment.’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall apply with respect to any amounts ap3 propriated under section 441(b) of the Higher Education 

4 Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 2007 or 

5 any succeeding fiscal year. 

6 SEC. 444. BOOKS AND SUPPLIES. 

7 Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is 

8 amended by striking ‘‘$450’’ and inserting ‘‘$600’’. 

9 SEC. 445. JOB LOCATION AND DEVELOPMENT. 

10 Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amend11 ed—

12 (1) by striking ‘‘10 percent or $50,000’’ and in13 serting ‘‘15 percent or $75,000’’; and 

14 (2) by inserting before the period at the end the 

15 following: ‘‘, except that not less than one-third of 

16 such amount shall be specifically allocated to locate 

17 and develop community service jobs’’. 

18 SEC. 446. WORK COLLEGES. 

19 Section 448 (42 U.S.C. 2756b) is amended—

20 (1) by striking ‘‘work-learning’’ each place it 

21 appears and inserting ‘‘work-learning-service’’; 

22 (2) by striking ‘‘work-service’’ each place it ap23 pears and inserting ‘‘work-learning-service’’; 

24 (3) by amending subparagraph (C) of sub25 section (e)(1) to read as follows: 
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1 ‘‘(C) requires all resident students, includ2 ing at least one-half of all students who are en3 rolled on a full-time basis, to participate in a 

4 comprehensive work-learning-service program 

5 for at least 5 hours each week, or at least 80 

6 hours during each period of enrollment, unless 

7 the student is engaged in an institutionally or8 ganized or approved study abroad or externship 

9 program; and’’; 

10 (4) by amending paragraph (2) of subsection 

11 (e) to read as follows: 

12 ‘‘(2) the term ‘comprehensive student work13 learning-service program’—

14 ‘‘(A) means a student work-learning-serv15 ice program that is an integral and stated part 

16 of the institution’s educational philosophy and 

17 program; 

18 ‘‘(B) requires participation of all resident 

19 students for enrollment and graduation; 

20 ‘‘(C) includes learning objectives, evalua21 tion, and a record of work performance as part 

22 of the student’s college record; 

23 ‘‘(D) provides programmatic leadership by 

24 college personnel at levels comparable to tradi25 tional academic programs; 
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1 ‘‘(E) recognizes the educational role of 

2 work-learning-service supervisors; and 

3 ‘‘(F) includes consequences for non4 performance or failure in the work-learning5 service program similar to the consequences for 

6 failure in the regular academic program.’’; and 

7 (5) in subsection (f), by striking ‘‘1999 and 

8 such sums as may be necessary for each of the 4 

9 succeeding fiscal years’’ and inserting ‘‘2005 and 

10 such sums as may be necessary for the 5 succeeding 

11 fiscal years’’. 

12 PART D—FEDERAL DIRECT LOAN PROGRAM 

13 SEC. 451. REAUTHORIZATION OF THE DIRECT LOAN PRO14 GRAM. 

15 (a) ADMINISTRATIVE EXPENSES.—Section 458(a)(1) 

16 (20 U.S.C. 1087h(a)(1)) is amended by striking 

17 ‘‘$617,000,000’’ and all that follows through ‘‘fiscal year 

18 2003’’ and inserting ‘‘$807,000,000 in fiscal year 2005, 

19 $820,000,000 in fiscal year 2006, $833,000,000 in fiscal 

20 year 2007, $847,000,000 in fiscal year 2008, 

21 $862,000,000 in fiscal year 2009, and $878,000,000 in 

22 fiscal year 2010’’. 

23 (b) CALCULATION BASIS.—Subsection (b) of section 

24 458 (20 U.S.C. 1087h(b)) is amended by striking ‘‘shall 

25 be calculated—’’ and all that follows through the end of 
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1 such subsection and inserting ‘‘shall be calculated on the 

2 basis of 0.10 percent of the original principal amount of 

3 outstanding loans on which insurance was issued under 

4 part B.’’. 

5 (c) SPECIAL RULES: FEE CAP.—Section 458(c)(1) 

6 (20 U.S.C. 1087h(c)(1)) is amended by striking subpara7 graphs (A) through (E) and inserting the following: 

8 ‘‘(A) for fiscal year 2005, shall not exceed 

9 $207,000,000; 

10 ‘‘(B) for fiscal year 2006, shall not exceed 

11 $220,000,000; 

12 ‘‘(C) for fiscal year 2007, shall not exceed 

13 $233,000,000; 

14 ‘‘(D) for fiscal year 2008, shall not exceed 

15 $247,000,000; 

16 ‘‘(E) for fiscal year 2009, shall not exceed 

17 $262,000,000; and 

18 ‘‘(F) for fiscal year 2010, shall not exceed 

19 $278,000,000.’’. 

20 (d) CONSOLIDATION LOAN ELIGIBILITY.—Section 

21 455(g) (20 U.S.C. 1087e(g)) is amended by adding at the 

22 end (after the sentence added by section 425(b)(2) of this 

23 Act) the following new sentence: ‘‘To be eligible for a con24 solidation loan under this part, a borrower must meet all 

25 the eligibility criteria set forth in section 428C(a)(3).’’. 
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1 PART E—FEDERAL PERKINS LOAN PROGRAM 

2 SEC. 461. REAUTHORIZATION OF PROGRAM. 

3 (a) PROGRAM AUTHORIZATION.—

4 (1) AUTHORIZATION OF APPROPRIATIONS.—

5 Section 461(b) (20 U.S.C. 1087aa(b)) is amended—

6 (A) in paragraph (1)—

7 (i) by striking ‘‘1999’’ and inserting 

8 ‘‘2005’’; and 

9 (ii) by striking ‘‘4 succeeding’’ and in10 serting ‘‘5 succeeding’’; and 

11 (B) in paragraph (2), by striking ‘‘2003’’ 

12 each place it appears and inserting ‘‘2011’’. 

13 (2) FEDERAL CAPITAL CONTRIBUTION RECOV14 ERY.—Section 466 (20 U.S.C. 1087ff) is amended—

15 (A) by striking ‘‘2004’’ each place it ap16 pears in subsections (a), (b), and (c) and insert17 ing ‘‘2011’’; 

18 (B) in subsection (a), by striking ‘‘2003’’ 

19 each place it appears and inserting ‘‘2010’’; and 

20 (C) in subsection (b), by striking ‘‘2012’’ 

21 and inserting ‘‘2019’’. 

22 (b) PHASEOUT OF ALLOCATION BASED ON PREVIOUS

23 ALLOCATIONS.—

24 (1) AMENDMENT.—Subsection (a) of section 

25 462 (20 U.S.C. 1087bb(a)) is amended to read as 

26 follows: 
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1 ‘‘(a) ALLOCATION BASED ON PREVIOUS ALLOCA2 TION.—

3 ‘‘(1) BASE GUARANTEE.—From the amount ap4 propriated pursuant to section 461(b) for each fiscal 

5 year after fiscal year 2006, the Secretary shall, sub6 ject to paragraphs (2) and (3), first allocate to each 

7 eligible institution an amount equal to—

8 ‘‘(A) 100 percent of the amount such insti9 tution received under subsection (a) of this sec10 tion for fiscal year 2006 (as such subsection 

11 was in effect with respect to allocations for such 

12 fiscal year), multiplied by 

13 ‘‘(B) the institution’s default penalty, as 

14 determined under subsection (e), except that if 

15 the institution has a cohort default rate in ex16 cess of the applicable maximum cohort default 

17 rate under subsection (f), the institution may 

18 not receive an allocation under this paragraph. 

19 ‘‘(2) PHASE OUT.—For each of the fiscal years 

20 after fiscal year 2006, paragraph (1) shall be ap21 plied by substituting for ‘100 percent’: 

22 ‘‘(A) ‘80 percent’ for fiscal years 2007 and 

23 2008; 

24 ‘‘(B) ‘60 percent’ for fiscal years 2009 and 

25 2010; 
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1 ‘‘(C) ‘40 percent’ for fiscal years 2011 and 

2 2012; 

3 ‘‘(D) ‘20 percent’ for fiscal years 2013 and 

4 2014; and 

5 ‘‘(E) ‘0 percent’ for fiscal year 2015 and 

6 any succeeding fiscal year. 

7 ‘‘(3) RATABLE REDUCTIONS FOR INSUFFICIENT

8 APPROPRIATIONS.—

9 ‘‘(A) REDUCTION OF BASE GUARANTEE.—

10 If the amount appropriated for any fiscal year 

11 is less than the amount required to be allocated 

12 to all institutions under this subsection, then 

13 the amount of the allocation to each such insti14 tution shall be ratably reduced. 

15 ‘‘(B) ADDITIONAL APPROPRIATIONS ALLO16 CATION.—If additional amounts are appro17 priated for any such fiscal year, such reduced 

18 amounts shall be increased on the same basis as 

19 they were reduced (until the amount allocated 

20 equals the amount required to be allocated 

21 under this subsection).’’. 

22 (2) EFFECTIVE DATE.—The amendment made 

23 by paragraph (1) shall apply with respect to any 

24 amounts appropriated under section 461(b) of the 

25 Higher Education Act of 1965 (20 U.S.C. 
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1 1087bb(b)) for fiscal year 2007 or any succeeding 

2 fiscal year. 

3 (c) BOOKS AND SUPPLIES.—Section 462(c)(4)(D) 

4 (20 U.S.C. 1087bb(c)(4)(D)) is amended by striking 

5 ‘‘$450’’ and inserting ‘‘$600’’. 

6 SEC. 462. LOAN TERMS AND CONDITIONS. 

7 (a) LOAN LIMITS.—Section 464(a) (20 U.S.C. 

8 1087dd(a))—

9 (1) in paragraph (2)(A)—

10 (A) by striking ‘‘$4,000’’ in clause (i) and 

11 inserting ‘‘$5,500’’; and 

12 (B) by striking ‘‘$6,000’’ in clause (ii) and 

13 inserting ‘‘$8,000’’; and 

14 (2) in paragraph (2)(B)—

15 (A) by striking ‘‘$40,000’’ in clause (i) and 

16 inserting ‘‘$60,000’’; 

17 (B) by striking ‘‘$20,000’’ in clause (ii) 

18 and inserting ‘‘$27,500’’; and 

19 (C) by striking ‘‘$8,000’’ in clause (iii) and 

20 inserting ‘‘$11,000’’. 

21 (b) FORBEARANCE.—Section 464(e) (20 U.S.C. 

22 1087dd(e)) is amended by striking ‘‘, upon written re23 quest,’’. 

24 (c) SPECIAL REPAYMENT RULE.—Paragraph (2) of 

25 section 464(f) is amended to read as follows: 
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1 ‘‘(2) No compromise repayment of a defaulted loan 

2 as authorized by paragraph (1) may be made unless 

3 agreed to by the Secretary.’’. 

4 (d) REHABILITATION.—Section 464(h)(1)(A) (20 

5 U.S.C. 1087dd(h)(1)(A)) is amended by striking ‘‘12 

6 ontime’’ and inserting ‘‘9 on-time’’. 

7 SEC. 463. LOAN CANCELLATION. 

8 Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is 

9 amended—

10 (1) by inserting ‘‘(D),’’ after ‘‘subparagraph 

11 (A), (C),’’ in clause (i); 

12 (2) by inserting ‘‘or’’ after the semicolon at the 

13 end of clause (ii); 

14 (3) by striking clause (iii); and 

15 (4) by redesignating clause (iv) as clause (iii). 

16 SEC. 464. TECHNICAL AMENDMENTS. 

17 Part E is further amended as follows: 

18 (1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 

19 1087bb(g)(1)(E)(i)(I)) is amended by inserting 

20 ‘‘monthly’’ after ‘‘consecutive’’. 

21 (2) Section 464(c)(1)(D) (20 U.S.C. 

22 1087dd(c)(1)(D)) is amended by redesignating sub23 clauses (I) and (II) as clauses (i) and (ii), respec24 tively. 
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1 (3) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) 

2 is amended—

3 (A) in subparagraph (A), by striking ‘‘sec4 tion 111(c)’’ and inserting ‘‘section 

5 1113(a)(5)’’; and 

6 (B) in subparagraph (C), by striking 

7 ‘‘With Disabilities’’ and inserting ‘‘with Disabil8 ities’’. 

9 (4) Section 467(b) (20 U.S.C. 1087gg(b)) is 

10 amended by striking ‘‘(5)(A), (5)(B)(i), or (6)’’ and 

11 inserting ‘‘(4)(A), (4)(B), or (5)’’. 

12 (5) Section 469(c) (20 U.S.C. 1087ii(c)) is 

13 amended—

14 (A) by striking ‘‘sections 602(a)(1) and 

15 672(1)’’ and inserting ‘‘sections 602(3) and 

16 632(5)’’; 

17 (B) by striking ‘‘qualified professional pro18 vider of early intervention services’’ and insert19 ing ‘‘early intervention services’’; and 

20 (C) by striking ‘‘section 672(2)’’ and in21 serting ‘‘section 632(4)’’. 

22 PART F—NEED ANALYSIS 

23 SEC. 471. SIMPLIFIED NEEDS TEST IMPROVEMENTS. 

24 Section 479 (20 U.S.C. 1087ss) is amended—
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1 (1) by striking clause (i) of subsection (b)(1)(A) 

2 and inserting the following: 

3 ‘‘(i) the student’s parents file a form 

4 described in paragraph (3) or certify that 

5 they are not required to file an income tax 

6 return, and the student files such a form 

7 or certifies that the student is not required 

8 to file an income tax return, or the stu9 dent’s parents receive benefits under a 

10 means-tested Federal benefit program;’’. 

11 (2) by striking clause (i) of subsection 

12 (b)(1)(B) and inserting the following: 

13 ‘‘(i) the student (and the student’s 

14 spouse, if any) files a form described in 

15 paragraph (3) or certifies that the student 

16 (and the student’s spouse, if any) is not re17 quired to file an income tax return, or the 

18 student (and the student’s spouse, if any) 

19 receives benefits under a means-tested 

20 Federal benefit program;’’; 

21 (3) by striking subparagraph (A) of subsection 

22 (c)(1) and inserting the following: 

23 ‘‘(A) the student’s parents file a form de24 scribed in subsection (b)(3) or certify that they 

25 are not required to file an income tax return, 
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1 and the student files such a form or certifies 

2 that the student is not required to file an in3 come tax return, or the student’s parents re4 ceive benefits under a means-tested Federal 

5 benefit program;’’; 

6 (4) by striking subparagraph (A) of subsection 

7 (c)(2) and inserting the following: 

8 ‘‘(A) the student (and the student’s 

9 spouse, if any) files a form described in sub10 section (b)(3) or certifies that the student (and 

11 the student’s spouse, if any) is not required to 

12 file an income tax return, or the student (and 

13 the student’s spouse, if any) receives benefits 

14 under a means-tested Federal benefit pro15 gram;’’; and 

16 (5) by adding at the end the following new sub17 section: 

18 ‘‘(d) DEFINITION OF MEANS-TESTED FEDERAL

19 BENEFIT PROGRAM.—For purposes of this section, the 

20 term ‘means-tested Federal benefit program’ means a 

21 mandatory spending program of the Federal Government, 

22 other than a program under this title, in which eligibility 

23 for the programs’ benefits, or the amount of such benefits, 

24 or both, are determined on the basis of income or re25 sources of the individual or family seeking the benefit, and 
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1 may include such programs as the supplemental security 

2 income program under title XVI of the Social Security 

3 Act, the food stamp program under the Food Stamp Act 

4 of 1977, and the free and reduced price school lunch pro5 gram under the Richard B. Russell National School Lunch 

6 Act, and other programs identified by the Secretary.’’. 

7 SEC. 472. ADDITIONAL NEED ANALYSIS AMENDMENTS. 

8 (a) INCOME PROTECTION ALLOWANCE FOR DEPEND9 ENT STUDENTS.——

10 (1) AMENDMENT.—Section 475(g)(2)(D) (20 

11 U.S.C. 1087oo(g)(2)(D)) is amended by striking 

12 ‘‘$2,200’’ and inserting ‘‘$3,000’’. 

13 (2) EFFECTIVE DATE.—The amendment made 

14 by paragraph (1) shall apply with respect to deter15 minations of need for periods of enrollment begin16 ning on or after July 1, 2005. 

17 (b) EMPLOYMENT EXPENSE ALLOWANCE.—Section 

18 478(h) (20 U.S.C. 1087rr(h)) is amended—

19 (1) by striking ‘‘476(b)(4)(B),’’; and 

20 (2) by striking ‘‘meals away from home, apparel 

21 and upkeep, transportation, and housekeeping serv22 ices’’ and inserting ‘‘food away from home, apparel, 

23 transportation, and household furnishings and oper24 ations’’. 
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1 (c) DISCRETION OF STUDENT FINANCIAL AID AD2 MINISTRATORS.—Section 479A(a) (20 U.S.C. 1087tt(a)) 

3 is amended—

4 (1) by striking ‘‘(a) IN GENERAL.—’’ and in5 serting the following: 

6 ‘‘(a) AUTHORITY TO MAKE ADJUSTMENTS.—

7 ‘‘(1) ADJUSTMENTS FOR SPECIAL CIR8 CUMSTANCES.—’’; 

9 (2) by inserting before ‘‘Special circumstances 

10 may’’ the following: 

11 ‘‘(2) SPECIAL CIRCUMSTANCES DEFINED.—’’; 

12 (3) by inserting ‘‘a student’s status as a ward 

13 of the court at any time prior to attaining 18 years 

14 of age,’’ after ‘‘487,’’; 

15 (4) by inserting before ‘‘Adequate documenta16 tion’’ the following: 

17 ‘‘(3) DOCUMENTATION AND USE OF SUPPLE18 MENTARY INFORMATION.—’’; and 

19 (5) by inserting before ‘‘No student’’ the fol20 lowing: 

21 ‘‘(4) FEES FOR SUPPLEMENTARY INFORMATION

22 PROHIBITED.—’’. 

23 (d) TREATING ACTIVE DUTY MEMBERS OF THE

24 ARMED FORCES AS INDEPENDENT STUDENTS.—Section 

25 480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by insert-
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1 ing before the semicolon at the end the following: ‘‘or is 

2 currently serving on active duty in the Armed Forces for 

3 other than training purposes’’. 

4 (e) EXCLUDABLE INCOME.—Section 480(e) (20 

5 U.S.C. 1087vv(e)) is amended—

6 (1) by striking ‘‘and’’ at the end of paragraph 

7 (3); 

8 (2) by striking the period at the end of para9 graph (4); and 

10 (3) by adding at the end the following new 

11 paragraph: 

12 ‘‘(5) any part of any distribution from a quali13 fied tuition program established under section 529 

14 of the Internal Revenue Code of 1986 that is not in15 cludable in gross income under such section 529.’’. 

16 (f) TREATMENT OF SAVINGS PLANS.—

17 (1) AMENDMENT.—Section 480(f) (20 U.S.C. 

18 1087vv(f)) is amended—

19 (A) in paragraph (1), by inserting ‘‘quali20 fied tuition programs established under section 

21 529 of the Internal Revenue Code of 1986 (26 

22 U.S.C. 529), except as provided in subpara23 graph (2),’’ after ‘‘tax shelters,’’; 

24 (B) by redesignating paragraph (2) as 

25 paragraph (3); and 
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1 (C) by inserting after paragraph (1) the 

2 following new paragraph: 

3 ‘‘(2) A qualified tuition program shall not be consid4 ered an asset of a dependent student under section 475 

5 of this part. The value of a qualified tuition program for 

6 purposes of determining the assets of parents or inde7 pendent students shall be—

8 ‘‘(A) the refund value of any tuition credits or 

9 certificates purchased under section 529 of the In10 ternal Revenue Code of 1986 (26 U.S.C. 529) on be11 half of a beneficiary; or 

12 ‘‘(B) the current balance of any account which 

13 is established under such section for the purpose of 

14 meeting the qualified higher education expenses of 

15 the designated beneficiary of the account.’’. 

16 (2) CONFORMING AMENDMENT.—Section 480(j) 

17 (20 U.S.C. 1087vv(j)) is amended—

18 (A) by striking ‘‘; TUITION PREPAYMENT

19 PLANS’’ in the heading of such subsection; 

20 (B) by striking paragraph (2); 

21 (C) in paragraph (3), by inserting ‘‘, or a 

22 distribution that is not includible in gross in23 come under section 529 of such Code,’’ after 

24 ‘‘1986’’; and 
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1 (D) by redesignating paragraph (3) as 

2 paragraph (2). 

3 PART G—GENERAL PROVISIONS RELATING TO 

4 STUDENT FINANCIAL ASSISTANCE 

5 SEC. 481. DEFINITION OF ACADEMIC YEAR. 

6 Paragraph (2) of section 481(a) (20 U.S.C. 1088(a)) 

7 is amended to read as follows: 

8 ‘‘(2) For the purpose of any program under this title, 

9 the term ‘academic year’ shall—

10 ‘‘(A) require a minimum of 30 weeks of instruc11 tional time for a course of study that measures its 

12 program length in credit hours; or 

13 ‘‘(B) require a minimum of 26 weeks of instruc14 tional time for a course of study that measures its 

15 program length in clock hours; and 

16 ‘‘(C) require an undergraduate course of study 

17 to contain an amount of instructional time whereby 

18 a full-time student is expected to complete at least 

19 (i) 24 semester or trimester hours or 36 quarter 

20 credit hours in a course of study that measures its 

21 program length in credit hours, or (ii) 900 clock 

22 hours in a course of study that measures its pro23 gram length in clock hours.’’. 
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1 SEC. 482. DISTANCE EDUCATION. 

2 (a) DISTANCE EDUCATION: ELIGIBLE PROGRAM.—

3 Section 481(b) (20 U.S.C. 1088(b)) is amended by adding 

4 at the end the following new paragraph: 

5 ‘‘(3) DISTANCE EDUCATION.—An otherwise eli6 gible program that is offered in whole or in part 

7 through telecommunications is eligible for the pur8 poses of this title if the program is offered by an in9 stitution, other than a foreign institution, that has 

10 been evaluated and determined (before or after the 

11 date of enactment of this paragraph) to have the ca12 pability to effectively deliver distance education pro13 grams by an accrediting agency or association 

14 that—

15 ‘‘(A) is recognized by the Secretary under 

16 subpart 2 of Part H; and 

17 ‘‘(B) has evaluation of distance education 

18 programs within the scope of its recognition, as 

19 described in section 496(n)(3).’’. 

20 (b) CORRESPONDENCE COURSES.—Section 484(l)(1) 

21 (20 U.S.C. 1091(l)(1)) is amended—

22 (1) in subparagraph (A)—

23 (A) by striking ‘‘for a program of study of 

24 1 year or longer’’; and 
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1 (B) by striking ‘‘unless the total’’ and all 

2 that follows through ‘‘courses at the institu3 tion’’; and 

4 (2) by amending subparagraph (B) to read as 

5 follows: 

6 ‘‘(B) EXCEPTION.—Subparagraph (A) 

7 does not apply to an institution or school de8 scribed in section 3(3)(C) of the Carl D. Per9 kins Vocational and Technical Education Act of 

10 1998.’’. 

11 SEC. 483. EXPANDING INFORMATION DISSEMINATION RE12 GARDING ELIGIBILITY FOR PELL GRANTS. 

13 Section 483(a) (20 U.S.C. 1090(a)) is amended by 

14 adding at the end the following new paragraph: 

15 ‘‘(8) EXPANDING INFORMATION DISSEMINATION

16 REGARDING ELIGIBILITY FOR PELL GRANTS.—The 

17 Secretary shall make special efforts, in conjunction 

18 with State efforts, to notify students and their par19 ents who qualify for a free lunch under the Richard 

20 B. Russell National School Lunch Act (42 U.S.C. 

21 1751 et seq.), the Food Stamps program, or such 

22 other programs as the Secretary shall determine, of 

23 their potential eligibility for a maximum Pell Grant, 

24 and shall disseminate such informational materials 

25 as the Secretary deems appropriate.’’. 
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1 SEC. 484. STUDENT ELIGIBILITY. 

2 (a) SUSPENSION OF ELIGIBILITY FOR DRUG OF3 FENSES.—Section 484(r)(1) (20 U.S.C. 1091(r)(1)) is 

4 amended by striking everything preceding the table and 

5 inserting the following: 

6 ‘‘(1) IN GENERAL.—A student who is convicted 

7 of any offense under any Federal or State law in8 volving the possession or sale of a controlled sub9 stance for conduct that occurred during a period of 

10 enrollment for which the student was receiving any 

11 grant, loan, or work assistance under this title shall 

12 not be eligible to receive any grant, loan, or work as13 sistance under this title from the date of that convic14 tion for the period of time specified in the following 

15 table:’’. 

16 (b) FREELY ASSOCIATED STATES.—Section 484(j) 

17 (20 U.S.C. 1091(j)) is amended by inserting ‘‘and shall 

18 be eligible only for assistance under subpart 1 of part A 

19 thereafter,’’ after ‘‘part C,’’. 

20 (c) VERIFICATION OF INCOME DATE.—Paragraph 

21 (1) of section 484(q) (20 U.S.C. 1091(q)) is amended to 

22 read as follows: 

23 ‘‘(1) CONFIRMATION WITH IRS.—The Secretary 

24 of Education, in cooperation with the Secretary of 

25 the Treasury, is authorized to confirm with the In26 ternal Revenue Service the information specified in 
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1 section 6103(l)(13) of the Internal Revenue Code of 

2 1986 reported by applicants (including parents) 

3 under this title on their Federal income tax returns 

4 for the purpose of verifying the information reported 

5 by applicants on student financial aid applications.’’. 

6 (d) PELL GRANT ELIGIBILITY PROVISION.—Section 

7 484 is amended by adding at the end the following new 

8 subsection: 

9 ‘‘(s) PELL GRANT ELIGIBILITY PROVISION.—A stu10 dent who does not have a certificate of graduation from 

11 a school providing secondary education may be eligible for 

12 assistance under subpart 1 of Part A of this title for no 

13 more than two academic years, if such student—

14 ‘‘(1) meets all eligibility requirements for such 

15 assistance (other than not being enrolled in an ele16 mentary or secondary school) and is an academically 

17 gifted and talented student, as defined in section 

18 9101 of the Elementary and Secondary Education 

19 Act; 

20 ‘‘(2) is in the junior or senior year of secondary 

21 school, and has not received any assistance under 

22 this title; 

23 ‘‘(3) is selected for participation and is enrolled 

24 full-time and resides on campus in a residential col-
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1 lege gifted student program for early enrollment, 

2 leading to fully transferable college academic credit; 

3 ‘‘(4) does not and will not participate in any 

4 secondary school course work during or after such 

5 program; and 

6 ‘‘(5) has entered into an agreement that, if the 

7 student fails to complete the entirety of the aca8 demic program for which assistance under subpart 1 

9 of Part A of this title was received, or participates 

10 in secondary school course work after participating 

11 in such program, the student will repay all funds re12 ceived under such subpart pursuant to this sub13 section to the Federal Government in accordance 

14 with regulations promulgated by the Secretary.’’. 

15 (e) TECHNICAL AMENDMENT.—Section 484(b)(5) is 

16 amended by inserting ‘‘or parent (on behalf of a student)’’ 

17 after ‘‘student’’. 

18 SEC. 485. INSTITUTIONAL REFUNDS. 

19 Section 484B (20 U.S.C. 1091b) is amended—

20 (1) in subsection (a)(1), by inserting ‘‘subpart 

21 4 of part A or’’ after ‘‘received under’’; 

22 (2) in subsection (a)(2), by striking ‘‘takes a 

23 leave’’ and by inserting ‘‘takes one or more leaves’’; 
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1 (3) in subsection (a)(3)(B)(ii), by inserting ‘‘(as 

2 determined in accordance with subsection (d))’’ after 

3 ‘‘student has completed’’; 

4 (4) in subsection (a)(4), by amending subpara5 graph (A) to read as follows: 

6 ‘‘(A) IN GENERAL.—After determining the 

7 eligibility of the student for a late disbursement 

8 or post-withdrawal disbursement (as required in 

9 regulations prescribed by the Secretary), the in10 stitution of higher education shall contact the 

11 borrower and obtain confirmation that the loan 

12 funds are still required by the borrower. In 

13 making such contact, the institution shall ex14 plain to the borrower the borrower’s obligation 

15 to repay the funds following any such disburse16 ment. The institution shall document in the 

17 borrower’s file the result of such contact and 

18 the final determination made concerning such 

19 disbursement. ’’. 

20 (5) in subsection (b)(1), by inserting ‘‘no later 

21 than 45 days from the determination of withdrawal’’ 

22 after ‘‘return’’; 

23 (6) in subsection (b)(2), by amending subpara24 graph (C) to read as follows: 
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1 ‘‘(C) GRANT OVERPAYMENT REQUIRE2 MENTS.—

3 ‘‘(i) IN GENERAL.—Notwithstanding 

4 subparagraphs (A) and (B), a student 

5 shall only be required to return grant as6 sistance in the amount (if any) by which—

7 ‘‘(I) the amount to be returned 

8 by the student (as determined under 

9 subparagraphs (A) and (B)), exceeds 

10 ‘‘(II) 50 percent of the total 

11 grant assistance received by the stu12 dent under this title for the payment 

13 period or period of enrollment. 

14 ‘‘(ii) MINIMUM.—A student shall not 

15 be required to return amounts of $50 or 

16 less.’’; and 

17 (7) in subsection (d), by striking ‘‘(a)(3)(B)(i)’’ 

18 and inserting ‘‘(a)(3)(B)’’. 

19 SEC. 486. INSTITUTIONAL AND FINANCIAL ASSISTANCE IN20 FORMATION FOR STUDENTS. 

21 (a) INFORMATION DISSEMINATION ACTIVITIES.—

22 Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended—

23 (1) by amending the second sentence to read as 

24 follows: ‘‘The information required by this section 

25 shall be produced and be made publicly available to 
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1 an enrolled student and to any prospective student 

2 in a uniform and comprehensible manner, through 

3 appropriate publications, mailings, electronic media, 

4 and the reports required by the institution’s accred5 iting agency under section 496(c)(9).’’; 

6 (2) by amending subparagraph (G) to read as 

7 follows: 

8 ‘‘(G) the academic programs of the institution, 

9 including—

10 ‘‘(i) the current degree programs and other 

11 educational and training programs; 

12 ‘‘(ii) the institution’s learning objectives 

13 for those programs; 

14 ‘‘(iii) the instructional, laboratory, and 

15 other physical plant facilities which relate to the 

16 academic programs; and 

17 ‘‘(iv) the faculty and other instructional 

18 personnel;’’; 

19 (3) by striking subparagraph (L) and inserting 

20 the following: 

21 ‘‘(L) a summary of student outcomes for full22 time undergraduate students, including—

23 ‘‘(i) the completion or graduation rates of 

24 certificate- or degree-seeking undergraduate 

25 students entering such institutions; 
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1 ‘‘(ii) when readily available, information 

2 showing the number of undergraduate students 

3 that transfer out of the institution; and 

4 ‘‘(iii) any other student outcome data, 

5 qualitative or quantitative, including data re6 garding distance education deemed by the insti7 tution to be appropriate to its stated edu8 cational mission and goals, and, when applica9 ble, licensing and placement rates for profes10 sional and vocational programs;’’; 

11 (4) by inserting before the semicolon at the end 

12 of subparagraph (J) the following: ‘‘, and the proc13 ess for students to register complaints with the ac14 crediting agencies or associations’’; 

15 (5) in subparagraph (M), by striking ‘‘guaran16 teed student loans under part B of this title or di17 rect student loans under part E of this title, or 

18 both,’’ and inserting ‘‘student loans under part B, 

19 D, or E of this title’’; 

20 (6) by striking ‘‘and’’ at the end of subpara21 graph (N); 

22 (7) by striking the period at the end of sub23 paragraph (O) and inserting a semicolon; and 

24 (8) by adding at the end the following new sub25 paragraphs: 
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1 ‘‘(P) the penalties contained in subsection 

2 484(r) regarding suspension of eligibility for drug 

3 related offenses; and 

4 ‘‘(Q) the policies of the institution for accepting 

5 transfer of credit, explained in a manner that clearly 

6 states the basis for determining the acceptability and 

7 applicability of transfer of credits.’’. 

8 (b) ADDITIONAL AMENDMENTS.—Section 485(a) is 

9 further amended by striking paragraph (6) and inserting 

10 the following: 

11 ‘‘(6) Each institution may provide supplemental 

12 information to enrolled and prospective students 

13 showing the completion or graduation rate for stu14 dents described in paragraph (4). For the purpose of 

15 this paragraph, the definitions provided in the Inte16 grated Postsecondary Education Data System shall 

17 apply. 

18 ‘‘(7) Each eligible institution participating in 

19 any program under this title may publicly report to 

20 currently enrolled and prospective students the vol21 untary information collected by the National Survey 

22 of Student Engagement (NSSE), the Community 

23 College Survey of Student Engagement (CCSSE), or 

24 other instruments that provide evidence of student 

25 participation in educationally purposeful activities. 
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1 The information shall be produced and made avail2 able in a uniform and comprehensible manner, 

3 through appropriate publications, mailings, and elec4 tronic media, and may be included in reports re5 quired by the institution’s accrediting agency.’’. 

6 (c) EXIT COUNSELING.—Section 485(b) (20 U.S.C. 

7 1092(b)) is amended by adding at the end the following 

8 new paragraph: 

9 ‘‘(3) Each eligible institution shall, during the exit 

10 interview required by this subsection, provide to a bor11 rower of a loan made under part B, D, or E a clear and 

12 conspicuous notice describing the effect of using a consoli13 dation loan to discharge the borrower’s student loans, in14 cluding—

15 ‘‘(A) the effects of consolidation on total inter16 est to be paid, fees to be paid, and length of repay17 ment; 

18 ‘‘(B) the effects of consolidation on a bor19 rower’s underlying loan benefits, including loan for20 giveness, cancellation, and deferment; 

21 ‘‘(C) the ability for the borrower to prepay the 

22 loan, pay on a shorter schedule, and to change re23 payment plans, and that borrower benefit programs 

24 may vary among different loan holders; 
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1 ‘‘(D) the tax benefits for which the borrower 

2 may be eligible; and 

3 ‘‘(E) the consequences of default.’’. 

4 (d) CAMPUS CRIME INFORMATION.—Section 

5 485(f)(1) (20 U.S.C. 1092(f)(1)) is amended by inserting 

6 ‘‘, other than a foreign institution of higher education,’’ 

7 after ‘‘under this title’’. 

8 (e) TRANSFER OF CREDIT POLICIES.—Section 485 

9 is further amended by adding at the end the following new 

10 subsection: 

11 ‘‘(h) TRANSFER OF CREDIT POLICIES.—

12 ‘‘(1) DISCLOSURE.—Each eligible institution 

13 participating in any program under this title shall 

14 publicly disclose in a readable and comprehensible 

15 manner its transfer of credit policies which shall in16 clude: 

17 ‘‘(A) A statement of the institution’s cur18 rent transfer of credit policies that includes at 

19 least—

20 ‘‘(i) a statement that transfer of cred21 it shall not be denied solely on the basis of 

22 the agency or association that accredited 

23 such other eligible institution, if that agen24 cy or association is recognized by the Sec25 retary pursuant to section 496 to be a reli-
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1 able authority as to the quality of the edu2 cation or training offered; and 

3 ‘‘(ii) a statement that transfer of 

4 credit shall be decided on the basis of 

5 whether the courses or program are deter6 mined by the institution to be acceptable 

7 for credit in accordance with objective cri8 teria that the institution publicly discloses 

9 and the student completed such courses or 

10 programs at the institution’s required level 

11 of proficiency. 

12 ‘‘(B) Statistics concerning the annual, as 

13 well as a 3-year rolling average, rate of the per14 centage of credits accepted in transfer and fully 

15 counted toward the degree or certificate comple16 tion requirements of undergraduate students. 

17 Such data shall be disaggregated to report on 

18 the following categories of institutions from 

19 which credits were accepted in transfer: 

20 ‘‘(i) nationally accredited; 

21 ‘‘(ii) regionally accredited in the same 

22 State; 

23 ‘‘(iii) regionally accredited in the same 

24 region; and 
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1 ‘‘(iv) regionally accredited in a dif2 ferent region. 

3 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

4 this subsection shall be construed to— 

5 ‘‘(A) authorize an officer or employee of 

6 the Department to exercise any direction, su7 pervision, or control over the curriculum, pro8 gram of instruction, administration, or per9 sonnel of any institution of higher education, or 

10 over any accrediting agency or association; 

11 ‘‘(B) limit the application of the General 

12 Education Provisions Act; or 

13 ‘‘(C) create any legally enforceable right.’’. 

14 SEC. 487. COLLEGE ACCESS INITIATIVE. 

15 Part G is further amended by inserting after section 

16 485C (20 U.S.C. 1092c) the following new section: 

17 ‘‘SEC. 485D. COLLEGE ACCESS INITIATIVE. 

18 ‘‘(a) STATE-BY-STATE INFORMATION.—The Sec19 retary shall direct each guaranty agency with which the 

20 Secretary has an agreement under section 428(c) to pro21 vide to the Secretary the information necessary for the de22 velopment of web links and access for students and fami23 lies to a comprehensive listing of the postsecondary edu24 cation opportunities programs, publications, Internet Web 
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1 sites, and other services available in the States for which 

2 such agency serves as the designated guarantor. 

3 ‘‘(b) GUARANTY AGENCY ACTIVITIES.—

4 ‘‘(1) PLAN AND ACTIVITY REQUIRED.—Each 

5 guaranty agency with which the Secretary has an 

6 agreement under section 428(c) shall develop a plan 

7 and undertake the activity necessary to gather the 

8 information required under subsection (a) and to 

9 make such information available to the public and to 

10 the Secretary in a form and manner as prescribed 

11 by the Secretary. 

12 ‘‘(2) ACTIVITIES.—Each guaranty agency shall 

13 undertake such activities as are necessary to pro14 mote access to postsecondary education for students 

15 through providing information on college planning, 

16 career preparation, and paying for college. The guar17 anty agency shall publicize such information and co18 ordinate such activities with other entities that ei19 ther provide or distribute such information in the 

20 States for which such guaranty agency serves as the 

21 designated guarantor. 

22 ‘‘(3) FUNDING.—The activities required by this 

23 section may be funded from the guaranty agency’s 

24 operating account established pursuant to section 

25 422B and to the extent funds remain, from earnings 
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1 on the restricted account established pursuant to 

2 section 422(h)(4). 

3 ‘‘(c) ACCESS TO INFORMATION.—

4 ‘‘(1) SECRETARY’S RESPONSIBILITY.—The Sec5 retary shall ensure the availability of the information 

6 provided by the guaranty agencies in accordance 

7 with this section to students, parents and other in8 terested individuals, through web links or other 

9 methods prescribed by the Secretary. 

10 ‘‘(2) GUARANTY AGENCY RESPONSIBILITY.—

11 The guaranty agencies shall ensure that the infor12 mation required by this section is available without 

13 charge in printed format for students and parents 

14 requesting such information. 

15 ‘‘(3) PUBLICITY.—Within 270 days after the 

16 date of enactment of the College Access and Oppor17 tunity Act of 2004, the Secretary and guaranty 

18 agencies shall publicize the availability of the infor19 mation required by this section, with special empha20 sis on ensuring that populations that are tradition21 ally underrepresented in postsecondary education are 

22 made aware of the availability of such information.’’. 
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1 SEC. 488. DISTANCE EDUCATION DEMONSTRATION PRO2 GRAM. 

3 (a) ELIGIBLE APPLICANTS.—Section 486(b)(3) (20 

4 U.S.C. 1093(b)(3)) is amended—

5 (1) in subparagraph (B), by striking ‘‘section 

6 102(a)(1)(C)’’ and inserting ‘‘section 102’’; and 

7 (2) in subparagraph (C), by striking ‘‘sub8 section (a) of section 102, other than the require9 ment of paragraph (3)(A) or (3)(B) of such sub10 section,’’ and inserting ‘‘section 101, other than the 

11 requirements of subparagraph (A) or (B) of sub12 section (b)(4) of such section’’. 

13 (b) SELECTION.—Section 486(d)(1) (20 U.S.C. 

14 1093(d)(1)) is amended—

15 (1) by striking ‘‘the third year’’ and inserting 

16 ‘‘subsequent years’’; 

17 (2) by striking ‘‘35 institutions’’ and inserting 

18 ‘‘100 institutions’’; and 

19 (3) by adding at the end the following new sen20 tence: ‘‘Not more than 5 of such institutions, sys21 tems, or consortia may be accredited, degree-grant22 ing correspondence schools.’’. 

23 SEC. 489. COLLEGE AFFORDABILITY DEMONSTRATION PRO24 GRAM. 

25 Part G of title IV is amended by inserting after sec26 tion 486 (20 U.S.C. 1093) the following new section: 
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1 ‘‘SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION 

2 PROGRAM. 

3 ‘‘(a) PURPOSE.—It is the purpose of this section—

4 ‘‘(1) to provide, through a college affordability 

5 demonstration program, for increased innovation in 

6 the delivery of higher education and student finan7 cial aid in a manner resulting in reduced costs for 

8 students as well as the institution by accelerating 

9 degree or program completion, increasing availability 

10 of, and access to, distance components of education 

11 delivery, and other alternative methodologies; and 

12 ‘‘(2) to help determine—

13 ‘‘(A) the most effective means of delivering 

14 student financial aid as well as quality edu15 cation; 

16 ‘‘(B) the specific statutory and regulatory 

17 requirements that should be altered to provide 

18 for more efficient and effective delivery of stu19 dent financial aid, as well as access to high 

20 quality distance education programs, resulting 

21 in a student more efficiently completing post22 secondary education; and 

23 ‘‘(C) the most effective methods of obtain24 ing and managing institutional resources. 

25 ‘‘(b) DEMONSTRATION PROGRAM AUTHORIZED.—
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1 ‘‘(1) IN GENERAL.—In accordance with the 

2 purposes described in subsection (a) and the provi3 sions of subsection (d), the Secretary is authorized 

4 to select not more than 100 institutions of higher 

5 education or systems of such institutions for vol6 untary participation in the College Affordability 

7 Demonstration Program in order to enable partici8 pating institutions to carry out such purposes by 

9 providing programs of postsecondary education, and 

10 making available student financial assistance under 

11 this title to students enrolled in those programs, in 

12 a manner that would not otherwise meet the require13 ments of this title. 

14 ‘‘(2) WAIVERS.—The Secretary is authorized to 

15 waive for any institutions of higher education, or 

16 any system or consortia of institutions of higher 

17 education, selected for participation in the College 

18 Affordability Demonstration Program, any require19 ments of this Act or the regulations thereunder as 

20 deemed necessary by the Secretary to meet the pur21 pose described in subsection (a)(1). 

22 ‘‘(3) ELIGIBLE APPLICANTS.—

23 ‘‘(A) ELIGIBLE INSTITUTIONS.—Except as 

24 provided in subparagraph (B), only an institu25 tion of higher education that is eligible to par-
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1 ticipate in programs under this title shall be eli2 gible to participate in the demonstration pro3 gram authorized under this section. 

4 ‘‘(B) PROHIBITION.—An institution of 

5 higher education described in section 102 shall 

6 not be eligible to participate in the demonstra7 tion program authorized under this section. 

8 ‘‘(c) APPLICATION.—

9 ‘‘(1) IN GENERAL.—Each institution or system 

10 of institutions desiring to participate in the dem11 onstration program under this section shall submit 

12 an application to the Secretary at such time and in 

13 such manner as the Secretary may require. 

14 ‘‘(2) CONTENTS OF APPLICATIONS.—Each ap15 plication for the college affordability demonstration 

16 program shall include at least the following: 

17 ‘‘(A) a description of the institution or sys18 tem of institutions and what quality assurance 

19 mechanisms are in place to insure the integrity 

20 of the Federal financial aid programs; 

21 ‘‘(B) a description of each regulatory or 

22 statutory requirement for which waivers are 

23 sought, with a reason for each waiver; 

24 ‘‘(C) a description of the programs being 

25 offered and the affected students; 
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1 ‘‘(D) a description of the expected out2 comes of the program changes proposed, includ3 ing the estimated reductions in costs both for 

4 the institution and for students; 

5 ‘‘(E) a description of any collaborative ar6 rangements with other institutions or organiza7 tions to reduce costs; 

8 ‘‘(F) a description of any expected eco9 nomic impact of participation in the program 

10 within the community in which the institution is 

11 located; 

12 ‘‘(G) a description of how the institution 

13 will reduce the costs of instructional materials, 

14 including textbooks; 

15 ‘‘(H) an assurance that the participating 

16 institution or system of institutions will offer 

17 full cooperation with the ongoing evaluations of 

18 the demonstration program provided for in this 

19 section; and 

20 ‘‘(I) any other information or assurances 

21 the Secretary may require. 

22 ‘‘(d) SELECTION.—In selecting institutions to partici23 pate in the demonstration program under this section, the 

24 Secretary shall take into account—
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1 ‘‘(1) the number and quality of applications re2 ceived, determined on the basis of the contents re3 quired by subsection (c)(2); 

4 ‘‘(2) the Department’s capacity to oversee and 

5 monitor each institution’s participation; 

6 ‘‘(3) an institution’s—

7 ‘‘(A) financial responsibility; 

8 ‘‘(B) administrative capability; 

9 ‘‘(C) program or programs being offered 

10 via distance education; 

11 ‘‘(D) student completion rates; and 

12 ‘‘(E) student loan default rates; and 

13 ‘‘(4) the participation of a diverse group of in14 stitutions with respect to size, mission, and geo15 graphic distribution. 

16 ‘‘(e) NOTIFICATION.—The Secretary shall make 

17 available to the public and to the authorizing committees 

18 a list of institutions and systems of institutions selected 

19 to participate in the demonstration program authorized by 

20 this section. Such notice shall include a listing of the spe21 cific statutory and regulatory requirements being waived 

22 for each institution or system of institutions and a descrip23 tion of the distance education courses to be offered. 

24 ‘‘(f) EVALUATIONS AND REPORTS.—
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1 ‘‘(1) EVALUATION.—The Secretary shall evalu2 ate the demonstration program authorized under 

3 this section on a biennial basis. Such evaluations 

4 specifically shall review—

5 ‘‘(A) the number and types of students 

6 participating in the programs offered, including 

7 the progress of participating students toward 

8 recognized certificates or degrees and the extent 

9 to which participation in such programs in10 creased; 

11 ‘‘(B) issues related to student financial as12 sistance for distance education; 

13 ‘‘(C) effective technologies and alternative 

14 methodologies for delivering student financial 

15 assistance; 

16 ‘‘(D) the extent of the cost savings to the 

17 institution, the student, and the Federal Gov18 ernment by virtue of the waivers provided, and 

19 an estimate as to future cost savings should the 

20 demonstration program continue; 

21 ‘‘(E) the extent to which students saved 

22 money by virtue of completing their postsec23 ondary education sooner; 
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1 ‘‘(F) the extent to which the institution re2 duced its tuition and fees and its costs by virtue 

3 of participation in the demonstration program; 

4 ‘‘(G) the extent to which any collaborative 

5 arrangements with other institutions or organi6 zations have reduced the participating institu7 tion’s costs; and 

8 ‘‘(H) the extent to which statutory or reg9 ulatory requirements not waived under the dem10 onstration program present difficulties for stu11 dents or institutions. 

12 ‘‘(2) POLICY ANALYSIS.—The Secretary shall 

13 review current policies and identify those policies 

14 that present impediments to the development and 

15 use of distance education and other nontraditional 

16 methods of expanding access to education. 

17 ‘‘(3) REPORTS.—The Secretary shall provide a 

18 report to the authorizing committees on a biennial 

19 basis regarding—

20 ‘‘(A) the demonstration program author21 ized under this section; 

22 ‘‘(B) the results of the evaluations con23 ducted under paragraph (1); 
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1 ‘‘(C) the cost savings to the Federal Gov2 ernment by the demonstration program author3 ized by this section; and 

4 ‘‘(D) recommendations for changes to in5 crease the efficiency and effective delivery of fi6 nancial aid. 

7 ‘‘(g) OVERSIGHT.—In conducting the demonstration 

8 program authorized under this section, the Secretary 

9 shall, on a continuing basis—

10 ‘‘(1) ensure compliance of institutions or sys11 tems of institutions with the requirements of this 

12 title (other than the sections and regulations that 

13 are waived under subsection (b)(2)); 

14 ‘‘(2) provide technical assistance to institutions 

15 in their application to and participation in the dem16 onstration program; 

17 ‘‘(3) monitor fluctuations in the student popu18 lation enrolled in the participating institutions or 

19 systems of institutions; 

20 ‘‘(4) monitor changes in financial assistance 

21 provided at the institution; and 

22 ‘‘(5) consult with appropriate accrediting agen23 cies or associations and appropriate State regulatory 

24 authorities. 
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1 ‘‘(h) TERMINATION OF AUTHORITY.—The authority 

2 of the Secretary under this section shall cease to be effec3 tive on October 1, 2010.’’. 

4 SEC. 490. PROGRAM PARTICIPATION AGREEMENTS. 

5 (a) REFUND POLICIES.—Section 487(a) (20 U.S.C. 

6 1094(a)) is amended—

7 (1) in paragraph (22), by striking ‘‘refund pol8 icy’’ and inserting ‘‘policy on the return of title IV 

9 funds’’; and 

10 (2) in paragraph (23)—

11 (A) by moving subparagraph (C) 2 em 

12 spaces to the left; and 

13 (B) by adding after such subparagraph the 

14 following new subparagraph: 

15 ‘‘(D) An institution shall be considered in com16 pliance with the requirements of subparagraph (A) 

17 for any student to whom the institution electroni18 cally transmits a message containing a voter reg19 istration form acceptable for use in the State in 

20 which the institution is located, or an Internet ad21 dress where such a form can be downloaded, pro22 vided such information is in an electronic message 

23 devoted to voter registration.’’. 

24 (b) AUDIT REQUIREMENTS.—Section 487(c)(1)(A)(i) 

25 (20 U.S.C. 1094(c)(1)(A)(i)) is amended by inserting be-
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1 fore the semicolon at the end the following: ‘‘, except that 

2 the Secretary may modify the requirements of this clause 

3 with respect to institutions of higher education that are 

4 foreign institutions, and may waive such requirements 

5 with respect to a foreign institution whose students receive 

6 less than $500,000 in loans under this title during the 

7 award year preceding the audit period;’’. 

8 (c) REPORTS ON DISCIPLINARY PROCEEDINGS.—

9 (1) AMENDMENT.—Section 487(a) (20 U.S.C. 

10 1094(a)) is amended by adding at the end the fol11 lowing new paragraph: 

12 ‘‘(24) The institution will disclose to the alleged 

13 victim of any crime of violence (as that term is de14 fined in section 16 of title 18), or a nonforcible sex 

15 offense, the final results of any disciplinary pro16 ceeding conducted by such institution against a stu17 dent who is the alleged perpetrator of such crime or 

18 offense with respect to such crime or offense. If the 

19 alleged victim of such crime or offense is deceased, 

20 the next of kin of such victim shall be treated as the 

21 alleged victim for purposes of this paragraph.’’. 

22 (2) EFFECTIVE DATE.—The amendment made 

23 by paragraph (1) shall apply with respect to any dis24 ciplinary proceeding conducted by such institution 
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1 on or after one year after the date of enactment of 

2 this Act. 

3 SEC. 491. ADDITIONAL TECHNICAL AND CONFORMING 

4 AMENDMENTS. 

5 Part G is further amended as follows: 

6 (1) Section 483(d) (20 U.S.C. 1090(d)) is 

7 amended by striking ‘‘that is authorized under sec8 tion 685(d)(2)(C)’’ and inserting ‘‘, or another ap9 propriate provider of technical assistance and infor10 mation on postsecondary educational services, that is 

11 supported under section 685’’. 

12 (2) Section 484 (20 U.S.C. 1091) is amended—

13 (A) in subsection (a)(4), by striking ‘‘cer14 tification,,’’ and inserting ‘‘certification,’’; 

15 (B) in subsection (b)(2)—

16 (i) in the matter preceding subpara17 graph (A), by striking ‘‘section 428A’’ and 

18 inserting ‘‘section 428H’’; 

19 (ii) in subparagraph (A), by inserting 

20 ‘‘and’’ after the semicolon at the end 

21 thereof; 

22 (iii) in subparagraph (B), by striking 

23 ‘‘; and’’ and inserting a period; and 

24 (iv) by striking subparagraph (C); and 
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1 (C) in subsection (l)(1)(B)(i), by striking 

2 ‘‘section 521(4)(C) of the Carl D. Perkins Vo3 cational and Applied Technology Education 

4 Act’’ and inserting ‘‘section 3(3)(C) of the Carl 

5 D. Perkins Vocational and Technical Education 

6 Act of 1998’’. 

7 (3) Section 485B(a) (20 U.S.C. 1092b(a)) is 

8 amended—

9 (A) by redesignating paragraphs (6) 

10 through (10) as paragraphs (7) through (11), 

11 respectively; 

12 (B) by redesignating the paragraph (5) (as 

13 added by section 2008 of Public Law 101–239) 

14 as paragraph (6); and 

15 (C) in paragraph (5) (as added by section 

16 204(3) of the National Community Service Act 

17 of 1990 (Public Law 101–610))—

18 (i) by striking ‘‘(22 U.S.C. 2501 et 

19 seq.)),’’ and inserting ‘‘(22 U.S.C. 2501 et 

20 seq.),’’; and 

21 (ii) by striking the period at the end 

22 thereof and inserting a semicolon. 

23 (4) Section 491(c) (20 U.S.C. 1098(c)) is 

24 amended by adding at the end the following new 

25 paragraph: 
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1 ‘‘(3) The appointment of members under subpara2 graphs (A) and (B) of paragraph (1) shall be effective 

3 upon publication of the appointment in the Congressional 

4 Record.’’. 

5 (5) Section 491(k) (20 U.S.C. 1098(k)) is 

6 amended by striking ‘‘2004’’ and inserting ‘‘2011’’. 

7 (6) Section 493A (20 U.S.C. 1098c) is re8 pealed. 

9 (7) Section 498 (20 U.S.C. 1099c) is amend10 ed—

11 (A) in subsection (c)(2), by striking ‘‘for 

12 profit,’’ and inserting ‘‘for-profit,’’; and 

13 (B) in subsection (d)(1)(B), by inserting 

14 ‘‘and’’ after the semicolon at the end thereof. 

15 PART H—PROGRAM INTEGRITY 

16 SEC. 495. ACCREDITATION. 

17 (a) STANDARDS FOR ACCREDITATION.—Section 

18 496(a) (20 U.S.C. 1099b(a)) is amended—

19 (1) in paragraph (3)—

20 (A) by inserting ‘‘or’’ after the semicolon 

21 at the end of subparagraph (A); 

22 (B) by striking subparagraph (B); and 

23 (C) by redesignating subparagraph (C) as 

24 subparagraph (B); 

25 (2) in paragraph (4)—
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1 (A) by inserting ‘‘(A)’’ after ‘‘(4)’’; 

2 (B) by inserting ‘‘and’’ after the semicolon 

3 at the end thereof; and 

4 (C) by adding at the end the following new 

5 subparagraph: 

6 ‘‘(B) if such agency or association already has 

7 or seeks to include within its scope of recognition 

8 the evaluation of the quality of institutions or pro9 grams offering distance education, such agency or 

10 association shall, in addition to meeting the other re11 quirements of this subpart—

12 ‘‘(i) demonstrate to the Secretary that, 

13 through application of its standards, proce14 dures, and policies, particularly those required 

15 under paragraph (5) of this subsection, the 

16 agency or association determines that the qual17 ity of instruction and student support services 

18 for distance education is comparable to that 

19 provided by the institution in its classrooms and 

20 on its campuses (or if distance education is the 

21 only mode of delivery used by the institution, 

22 comparable to the quality of instruction and 

23 student support services provided in campus 

24 settings); and 
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1 ‘‘(ii) evaluate how an institution offering 

2 distance education ensures the integrity of stu3 dent participation in its distance education pro4 grams;’’. 

5 (D) by inserting after ‘‘standards’’ the fol6 lowing: ‘‘(including standards to assess the 

7 quality of distance education that are com8 parable to the standards used for face-to-face 

9 classroom instruction)’’; 

10 (3) in paragraph (5)—

11 (A) by amending subparagraph (A) to read 

12 as follows: 

13 ‘‘(A) success with respect to student 

14 achievement in relation to the institution’s mis15 sion, including, as appropriate, consideration of 

16 student academic achievement as determined by 

17 the institution (in accordance with standards of 

18 the accrediting agency or association) related to 

19 each institution’s articulation of desired learn20 ing outcomes, retention, course and program 

21 completion, State licensing examinations, and 

22 job placement rates; and other student perform23 ance data selected by the institution, particu24 larly data used by the institution to evaluate or 

25 strengthen its educational programs, and in-
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1 cluding thresholds for course completion and 

2 job placement rates if the institution offers cer3 tificate-granting vocation or technical pro4 grams;’’; 

5 (B) in subparagraph (E), by striking ‘‘fis6 cal and administrative capacity’’ and inserting 

7 ‘‘fiscal, administrative, and governance capac8 ity’’; and 

9 (C) by amending subparagraph (I) to read 

10 as follows: 

11 ‘‘(I) record of student complaints received 

12 by the agency or association, including those re13 sulting from the process described in section 

14 485(a)(1)(J); and’’; 

15 (4) by striking ‘‘and’’ at the end of paragraph 

16 (7); and 

17 (5) by striking paragraph (8) and inserting the 

18 following: 

19 ‘‘(8) such agency or association shall make 

20 available to the public, and submit to the Secretary, 

21 for use in consumer information programs, a sum22 mary of agency or association actions, including—

23 ‘‘(A) the award of accreditation or re24 accreditation of an institution and any findings 
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1 made in connection with the accreditation or re2 accreditation; 

3 ‘‘(B) final denial, withdrawal, suspension, 

4 or termination of accreditation, or placement on 

5 probation of an institution; 

6 ‘‘(C) any other adverse action taken with 

7 respect to an institution; 

8 ‘‘(D) a list of the individuals who comprise 

9 the inspection and review teams for each agency 

10 or association, including each individual’s name, 

11 agency affiliation, and relevant professional ex12 perience; 

13 ‘‘(E) a description of the agency’s or asso14 ciation’s process for selecting, training, and 

15 evaluating such individuals; and 

16 ‘‘(F) the agency’s or association’s code of 

17 conduct for its commissioners and such individ18 uals; and 

19 ‘‘(9) such agency or association shall—

20 ‘‘(A) review, during its onsite comprehen21 sive review, the transfer of credit policies of 

22 programs and institutions under its accredita23 tion; and 

24 ‘‘(B) not adopt or apply standards, poli25 cies, or practices that restrict or deny the trans-
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1 fer of credits earned by a student completing 

2 courses or programs at other eligible institu3 tions of higher education solely on the basis of 

4 the agency or association that accredited such 

5 other eligible institution if that agency or asso6 ciation—

7 ‘‘(i) is recognized by the Secretary 

8 pursuant to this section to be a reliable au9 thority as to the quality of the education 

10 or training offered; and 

11 ‘‘(ii) is currently listed by the Sec12 retary pursuant to section 101(c).’’. 

13 (b) OPERATING PROCEDURES.—Section 496(c) (20 

14 U.S.C. 1099b(c)) is amended—

15 (1) by inserting ‘‘(including those regarding dis16 tance education), and have several years of related 

17 experience’’ before the semicolon at the end of para18 graph (1); 

19 (2) by striking ‘‘and’’ at the end of paragraph 

20 (5); 

21 (3) by striking the period at the end of para22 graph (6) and inserting a semicolon; and 

23 (4) by inserting after paragraph (6) the fol24 lowing new paragraphs: 
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1 ‘‘(7) ensures that its onsite comprehensive re2 views for accreditation or reaccreditation include 

3 evaluation of the substance of the information re4 quired in subparagraphs (G) and (H) of section 

5 485(a)(1); 

6 ‘‘(8) confirms as a part of its review for accred7 itation or reaccreditation that the institution has 

8 transfer policies that are publicly disclosed and con9 sistently applied; 

10 ‘‘(9) develops as required in subsection (a)(8), 

11 a summary available to the public of the agency’s 

12 action and the significant findings related to that ac13 tion; 

14 ‘‘(10) includes, in its evaluation for accredita15 tion or reaccreditation, review of the transfer of 

16 credit policies of the program or institution to assure 

17 that transfer policies do not deny transfer of credit 

18 based solely on the accreditation of the sending pro19 gram or institution, except that nothing in this re20 view shall restrict the right of the receiving program 

21 or institution to determine, on any other basis or on 

22 a combination of that basis together with other 

23 bases, the credits the receiving program or institu24 tion will accept for transfer; and 
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1 ‘‘(11) monitors the growth of distance edu2 cation programs, evaluating, as appropriate, the de3 velopment and management of such programs at in4 stitutions that are experiencing significant growth in 

5 distance education.’’. 

6 (c) LIMITATION, SUSPENSION, AND TERMINATION OF

7 RECOGNITION.—Section 496(l) is amended by adding at 

8 the end the following new paragraph: 

9 ‘‘(3) The Secretary shall provide an annual report to 

10 Congress on the status of any agency or association for 

11 which the Secretary has limited, suspended or terminated 

12 recognition under this subsection.’’. 

13 (d) COLLEGE CONSUMER PROFILE.—Section 496 is 

14 further amended—

15 (1) by redesignating subsection (o) as sub16 section (p); and 

17 (2) by inserting after subsection (n): 

18 ‘‘(o) COLLEGE CONSUMER PROFILE.—

19 ‘‘(1) INFORMATION DISSEMINATION.—No ac20 crediting agency or association shall be recognized 

21 by the Secretary as a reliable authority as to the 

22 quality of the education or training offered by an in23 stitution seeking to participate in the programs au24 thorized under this title, unless the agency ensures 

25 each institution subject to its jurisdiction makes 
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1 publicly available in a uniform and comprehensible 

2 manner, a college consumer profile including, at 

3 minimum, information on the institution’s—

4 ‘‘(A) mission; 

5 ‘‘(B) student demographics; 

6 ‘‘(C) accreditation; 

7 ‘‘(D) faculty/student ratios; 

8 ‘‘(E) faculty qualifications, including the 

9 number of faculty with terminal degrees; 

10 ‘‘(F) tuition, fees, and other costs of at11 tending the institution; 

12 ‘‘(G) student services, including services 

13 for students with disabilities; 

14 ‘‘(H) policies and procedures for evaluating 

15 and accepting credits earned by students trans16 ferring from other institutions and the percent17 age of such credits accepted; 

18 ‘‘(I) completion and graduation rates; and 

19 ‘‘(J) placement rates and other measures 

20 of success in preparing students for entry into 

21 or advancement in the workforce. 

22 ‘‘(2) PUBLICATION OF COLLEGE CONSUMER

23 PROFILE.—The contents of the college consumer 

24 profile required by paragraph (1) shall be made pub25 lic through dissemination via the Secretary’s data 
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1 collection and dissemination system. The informa2 tion required to be disclosed by section 485 may be 

3 used by the institution to provide (where applicable) 

4 the contents of the college consumer profile, but 

5 nothing in this subsection shall be construed to re6 lieve the institution of any information disclosure re7 quirement of such section.’’. 

8 TITLE V—DEVELOPING 

9 INSTITUTIONS 

10 SEC. 501. DEFINITIONAL CHANGES. 

11 Section 502(a) (20 U.S.C. 1101a(a)) is amended—

12 (1) in paragraph (5)—

13 (A) by inserting ‘‘and’’ after the semicolon 

14 at the end of subparagraph (A); 

15 (B) by inserting ‘‘at the end of the award 

16 year immediately preceding the date of applica17 tion’’ after ‘‘Hispanic students’’ in subpara18 graph (B); 

19 (C) by striking ‘‘; and’’ at the end of sub20 paragraph (B) and inserting a period; and 

21 (D) by striking subparagraph (C); and 

22 (2) by striking paragraph (7). 

23 SEC. 502. ASSURANCE OF ENROLLMENT OF NEEDY STU24 DENTS. 

25 Section 511(c) (20 U.S.C. 1103(c)) is amended—
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1 (1) by redesignating paragraphs (8) and (9) as 

2 paragraphs (9) and (10), respectively; and 

3 (2) by inserting after paragraph (7) the fol4 lowing new paragraph: 

5 ‘‘(8) contain such assurances as the Secretary 

6 may require that the institution has an enrollment 

7 of needy students as required by section 502(b);’’. 

8 SEC. 503. ADDITIONAL AMENDMENTS. 

9 Title V is further amended—

10 (1) in section 502(a)(2)(A) (20 U.S.C. 

11 1101a(a)(2)(A)), by redesignating clauses (v) and 

12 (vi) as clauses (vi) and (vii), respectively, and insert13 ing after clause (iv) the following new clause: 

14 ‘‘(v) which provides a program of not 

15 less than 2 years that is acceptable for full 

16 credit toward a bachelor’s degree; and’’; 

17 (2) in section 503(b) (20 U.S.C. 1101b(b))—

18 (A) by amending paragraph (2) to read as 

19 follows: 

20 ‘‘(2) Construction, maintenance, renovation, 

21 and improvement in classrooms, libraries, labora22 tories, and other instructional facilities, including 

23 purchase or rental of telecommunications technology 

24 equipment or services, and the acquisition of real 
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1 property adjacent to the campus of the institution 

2 on which to construct such facilities.’’; 

3 (B) by amending paragraph (12) to read 

4 as follows: 

5 ‘‘(12) Establishing community outreach pro6 grams and collaborative partnerships between His7 panic-serving institutions and local elementary or 

8 secondary schools. Such partnerships may include 

9 mentoring, tutoring, or other instructional opportu10 nities that will boost student academic achievement 

11 and assist elementary and secondary school students 

12 in developing the academic skills and the interest to 

13 pursue postsecondary education.’’; 

14 (C) by redesignating paragraphs (5) 

15 through (14) as paragraphs (6) through (15), 

16 respectively; and 

17 (D) by inserting after paragraph (4) the 

18 following: 

19 ‘‘(5) Education or counseling services designed 

20 to improve the financial literacy and economic lit21 eracy of students and, as appropriate, their par22 ents.’’; and 

23 (3) in section 504(a) (20 U.S.C. 1101c(a))—

24 (A) by striking the following: 

25 ‘‘(a) AWARD PERIOD.—
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1 ‘‘(1) IN GENERAL.—The Secretary’’ and insert2 ing the following: 

3 ‘‘(a) AWARD PERIOD.—The Secretary’’; and 

4 (B) by striking paragraph (2). 

5 SEC. 504. TITLE V AUTHORIZATION. 

6 Subsection (a) of section 518 of such Act (20 U.S.C. 

7 1103g(a)) is amended to read as follows: 

8 ‘‘(a) AUTHORIZATIONS OF APPROPRIATIONS.—There 

9 are authorized to be appropriated to carry out this title 

10 $96,000,000 for fiscal year 2005 and such sums as may 

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

12 TITLE VI—TITLE VI 

13 AMENDMENTS 

14 SEC. 601. SENSE OF THE HOUSE. 

15 It is the sense of the House of Representatives that 

16 title VI of the Higher Education Act of 1965 should be 

17 amended as provided in H.R. 3077 as passed by the House 

18 of Representatives on October 21, 2003. 

19 TITLE VII—TITLE VII 

20 AMENDMENTS 

21 SEC. 701. SENSE OF THE HOUSE. 

22 It is the sense of the House of Representatives that 

23 title VII of the Higher Education Act of 1965 should be 

24 amended as provided in H.R. 3076 as passed by the House 

25 of Representatives on October 21, 2003. 
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1 TITLE VIII—CLERICAL 

2 AMENDMENTS 

3 SEC. 801. CLERICAL AMENDMENTS. 

4 (a) DEFINITION.—Section 103 (20 U.S.C. 1003) is 

5 amended—

6 (1) by redesignating paragraphs (1) through 

7 (16) as paragraphs (2) through (17), respectively; 

8 and 

9 (2) by inserting before paragraph (2) (as so re10 designated) the following new paragraph: 

11 ‘‘(1) AUTHORIZING COMMITTEES.—The term 

12 ‘authorizing committees’ means the Committee on 

13 Health, Education, Labor, and Pensions of the Sen14 ate and the Committee on Education and the Work15 force of the House of Representatives.’’. 

16 (b) COMMITTEES.—

17 (1) The following provisions are each amended 

18 by striking ‘‘Committee on Labor and Human Re19 sources of the Senate and the Committee on Edu20 cation and the Workforce of the House of Rep21 resentatives’’ and inserting ‘‘authorizing commit22 tees’’: 

23 (A) Section 131(a)(3)(B) (20 U.S.C. 

24 1015(a)(3)(B)). 
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1 (B) Section 131(c)(4) (20 U.S.C. 

2 1015(c)(4)). 

3 (C) Section 206(d) (20 U.S.C. 1026(d)). 

4 (D) Section 207(c)(1) (20 U.S.C. 

5 1027(c)(1)). 

6 (E) Section 428(g) (20 U.S.C. 1078(g)). 

7 (F) Section 428A(a)(4) (20 U.S.C. 1078–

8 1(a)(4)). 

9 (G) Section 428A(c)(2) (20 U.S.C. 1078–

10 1(c)(2)). 

11 (H) Section 428A(c)(3) (20 U.S.C. 1078–

12 1(c)(3)). 

13 (I) Section 428A(c)(5) (20 U.S.C. 1078–

14 1(c)(5)). 

15 (J) Section 455(b)(8)(B) (20 U.S.C. 

16 1087e(b)(8)(B)). 

17 (K) Section 483(c) (20 U.S.C. 1090(c)). 

18 (L) Section 486(e) (20 U.S.C. 1093(e)). 

19 (M) Section 486(f)(3)(A) (20 U.S.C. 

20 1093(f)(3)(A)). 

21 (N) Section 486(f)(3)(B) (20 U.S.C. 

22 1093(f)(3)(B)). 

23 (O) Section 487A(a)(5) (20 U.S.C. 

24 1094a(a)(5)). 
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1 (P) Section 487A(b)(2) (20 U.S.C. 

2 1094a(b)(2)). 

3 (Q) Section 487A(b)(3)(B) (20 U.S.C. 

4 1094a(b)(3)(B)). 

5 (R) Section 498B(d)(1) (20 U.S.C. 1099c–

6 2(d)(1)). 

7 (S) Section 498B(d)(2) (20 U.S.C. 1099c–

8 2(d)(2)). 

9 (2) The following provisions are each amended 

10 by striking ‘‘Committee on Education and the Work11 force of the House of Representatives and the Com12 mittee on Labor and Human Resources of the Sen13 ate’’ and inserting ‘‘authorizing committees’’: 

14 (A) Section 141(d)(4)(B) (20 U.S.C. 

15 1018(d)(4)(B)). 

16 (B) Section 428(n)(4) (20 U.S.C. 

17 1078(n)(4)). 

18 (C) Section 485(f)(5)(A) (20 U.S.C. 

19 1092(f)(5)(A)). 

20 (D) Section 485(g)(4)(B) (20 U.S.C. 

21 1092(g)(4)(B)). 

22 (3) Section 206(a) (20 U.S.C. 1026(a)) is 

23 amended by striking ‘‘, the Committee on Labor and 

24 Human Resources of the Senate, and the Committee 

25 on Education and the Workforce of the House of 
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1 Representatives’’ and inserting ‘‘and the authorizing 

2 committees’’. 

3 (4) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) 

4 is amended by striking ‘‘Committee on Appropria5 tions and the Committee on Labor and Human Re6 sources of the Senate and the Committee on Appro7 priations and the Committee on Education and the 

8 Workforce of the House of Representatives’’ and in9 serting ‘‘Committees on Appropriations of the Sen10 ate and House of Representatives and the author11 izing committees’’. 

12 (5) Section 428(c)(9)(K) (20 U.S.C. 

13 1078(c)(9)(K)) is amended by striking ‘‘House Com14 mittee on Education and the Workforce and the 

15 Senate Committee on Labor and Human Resources’’ 

16 and inserting ‘‘authorizing committees’’. 

17 (6) Section 428I(h) (20 U.S.C. 1078–9(h)) is 

18 amended by striking ‘‘Chairman of the Senate Labor 

19 and Human Resources Committee and the House 

20 Committee on Education and Labor’’ and inserting 

21 ‘‘chairpersons of the authorizing committees’’. 

22 (7) Section 432(f)(1)(C) (20 U.S.C. 

23 1082(f)(1)(C)) is amended by striking ‘‘Committee 

24 on Education and the Workforce of the House of 

25 Representatives or the Committee on Labor and 
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1 Human Resources of the Senate’’ and inserting ‘‘ei2 ther of the authorizing committees’’. 

3 (8) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087–

4 2(d)(1)(E)(iii)) is amended by striking ‘‘Chairman 

5 and the Ranking Member on the Committee on 

6 Labor and Human Resources of the Senate and the 

7 Chairman and the Ranking Member of the Com8 mittee on Education and Labor of the House of 

9 Representatives’’ and inserting ‘‘chairpersons and 

10 ranking minority members of the authorizing com11 mittees’’. 

12 (9) Paragraphs (3) and (8)(C) of section 439(r) 

13 (20 U.S.C. 1087–2(r)) are each amended by striking 

14 ‘‘Chairman and ranking minority member of the 

15 Committee on Labor and Human Resources of the 

16 Senate, the Chairman and ranking minority member 

17 of the Committee on Education and Labor of the 

18 House of Representatives,’’ and inserting ‘‘chair19 persons and ranking minority members of the au20 thorizing committees’’. 

21 (10) Paragraphs (5)(B) and (10) of section 

22 439(r) (20 U.S.C. 1087–2(r)) are each amended by 

23 striking ‘‘Chairman and ranking minority member of 

24 the Senate Committee on Labor and Human Re25 sources and to the Chairman and ranking minority 
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1 member of the House Committee on Education and 

2 Labor’’ and inserting ‘‘chairpersons and ranking mi3 nority members of the authorizing committees’’. 

4 (11) Section 439(r)(6)(B) (20 U.S.C. 1087–

5 2(r)(6)(B)) is amended by striking ‘‘Chairman and 

6 ranking minority member of the Committee on 

7 Labor and Human Resources of the Senate and to 

8 the Chairman and ranking minority member of the 

9 Committee on Education and Labor of the House of 

10 Representatives’’ and inserting ‘‘chairpersons and 

11 ranking minority members of the authorizing com12 mittees’’. 

13 (12) Section 439(s)(2)(A) (20 U.S.C. 1087–

14 2(s)(2)(A)) is amended by striking ‘‘Chairman and 

15 Ranking Member of the Committee on Labor and 

16 Human Resources of the Senate and the Chairman 

17 and Ranking Member of the Committee on Eco18 nomic and Educational Opportunities of the House 

19 of Representatives’’ and inserting ‘‘chairpersons and 

20 ranking minority members of the authorizing com21 mittees’’. 

22 (13) Section 439(s)(2)(B) (20 U.S.C. 1087–

23 2(s)(2)(B)) is amended by striking ‘‘Chairman and 

24 Ranking Minority Member of the Committee on 

25 Labor and Human Resources of the Senate and 
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1 Chairman and Ranking Minority Member of the 

2 Committee on Economic and Educational Opportu3 nities of the House of Representatives’’ and insert4 ing ‘‘chairpersons and ranking minority members of 

5 the authorizing committees’’. 

6 (14) Section 482(d) (20 U.S.C. 1089(d)) is 

7 amended by striking ‘‘Committee on Labor and 

8 Human Resources of the Senate and the Committee 

9 on Education and Labor of the House of Represent10 atives’’ and inserting ‘‘authorizing committees’’. 

11 (c) ADDITIONAL CLERICAL AMENDMENTS.—

12 (1) Clauses (i) and (ii) of section 425(a)(2)(A) 

13 (20 U.S.C. 1075(a)(2)(A)) are each amended by 

14 striking ‘‘428A or 428B’’ and inserting ‘‘428B or 

15 428H’’. 

16 (2) Section 428(a)(2)(E) (20 U.S.C. 

17 1078(a)(2)(E)) is amended by striking ‘‘428A or’’. 

18 (3) Clauses (i) and (ii) of section 428(b)(1)(B) 

19 (20 U.S.C. 1078(b)(1)(B)) are each amended by 

20 striking ‘‘428A or 428B’’ and inserting ‘‘428B or 

21 428H’’. 

22 (4) Section 428(b)(1)(Q) (20 U.S.C. 

23 1078(b)(1)(Q)) is amended by striking ‘‘sections 

24 428A and 428B’’ and inserting ‘‘section 428B or 

25 428H’’. 
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1 (5) Section 428(b)(7)(C) (20 U.S.C. 

2 1078(b)(7)(C)) is amended by striking ‘‘428A, 

3 428B,’’ and inserting ‘‘428B’’. 

4 (6) Section 428G(c)(2) (20 U.S.C. 1078–

5 7(c)(2)) is amended by striking ‘‘428A’’ and insert6 ing ‘‘428H’’. 

7 (7) The heading for section 433(e) (20 U.S.C. 

8 1083(e)) is amended by striking ‘‘SLS LOANS

9 AND’’. 

10 (8) Section 433(e) (20 U.S.C. 1083(e)) is 

11 amended by striking ‘‘428A, 428B,’’ and inserting 

12 ‘‘428B’’. 

13 (9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is 

14 amended—

15 (A) by inserting ‘‘or’’ at the end of sub16 paragraph (A); 

17 (B) by striking subparagraph (B); and 

18 (C) by redesignating subparagraph (C) as 

19 subparagraph (B). 

20 (10) Section 435(d)(1)(G) (20 U.S.C. 

21 1085(d)(1)(G)) is amended by striking ‘‘428A(d), 

22 428B(d), 428C,’’ and inserting ‘‘428B(d), 428C, 

23 428H,’’. 

24 (11) Section 435(m) (20 U.S.C. 1085(m)) is 

25 amended—
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1 (A) in paragraph (1)(A), by striking ‘‘, 

2 428A,’’; and 

3 (B) in paragraph (2)(D), by striking 

4 ‘‘428A’’ each place it appears and inserting 

5 ‘‘428H’’. 

6 (12) Section 438(b)(2)(D) (20 U.S.C. 1087–

7 1(b)(2)(D)) is amended by striking ‘‘division (i) of 

8 this subparagraph’’ and inserting ‘‘clause (i) of this 

9 subparagraph’’. 

10 (13) Section 438(c)(6) (20 U.S.C. 1087–

11 1(c)(6)) is amended—

12 (A) by striking ‘‘SLS AND PLUS’’ in the 

13 heading and inserting ‘‘PLUS’’; and 

14 (B) by striking ‘‘428A or’’. 

15 (14) Section 438(c)(7) (20 U.S.C. 1087–

16 1(c)(7)) is amended by striking ‘‘428A or’’. 

17 (15) Nothing in the amendments made by this 

18 subsection shall be construed to alter the terms, con19 ditions, and benefits applicable to Federal supple20 mental loans for students (‘‘SLS loans’’) under sec21 tion 428A as in effect prior to July 1, 1994 (20 

22 U.S.C. 1078–1). 
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1 TITLE IX—STUDENT LOAN FOR2 GIVENESS FOR FAMILIES OF 

3 9/11 VICTIMS 

4 SEC. 901. CANCELLATION OF STUDENT LOAN INDEBTED5 NESS FOR SPOUSES, SURVIVING JOINT DEBT6 ORS, AND PARENTS. 

7 (a) DEFINITIONS.—For purposes of this section: 

8 (1) ELIGIBLE PUBLIC SERVANT.—The term ‘‘el9 igible public servant’’ means an individual who—

10 (A) served as a police officer, firefighter, 

11 other safety or rescue personnel, or as a mem12 ber of the Armed Forces; and 

13 (B) died (or dies) or became (or becomes) 

14 permanently and totally disabled due to injuries 

15 suffered in the terrorist attack on September 

16 11, 2001; 

17 as determined in accordance with regulations of the 

18 Secretary. 

19 (2) ELIGIBLE VICTIM.—The term ‘‘eligible vic20 tim’’ means an individual who died (or dies) or be21 came (or becomes) permanently and totally disabled 

22 due to injuries suffered in the terrorist attack on 

23 September 11, 2001, as determined in accordance 

24 with regulations of the Secretary. 
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1 (3) ELIGIBLE PARENT.—The term ‘‘eligible 

2 parent’’ means the parent of an eligible victim if—

3 (A) the parent owes a Federal student loan 

4 that is a consolidation loan that was used to 

5 repay a PLUS loan incurred on behalf of such 

6 eligible victim; or 

7 (B) the parent owes a Federal student loan 

8 that is a PLUS loan incurred on behalf of an 

9 eligible victim who became (or becomes) perma10 nently and totally disabled due to injuries suf11 fered in the terrorist attack on September 11, 

12 2001. 

13 (4) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Education. 

15 (5) FEDERAL STUDENT LOAN.—The term 

16 ‘‘Federal student loan’’ means any loan made, in17 sured, or guaranteed under part B, D, or E of title 

18 IV of the Higher Education Act of 1965. 

19 (b) RELIEF FROM INDEBTEDNESS.—

20 (1) IN GENERAL.—The Secretary shall provide 

21 for the discharge or cancellation of—

22 (A) the Federal student loan indebtedness 

23 of the spouse of an eligible public servant, as 

24 determined in accordance with regulations of 

25 the Secretary, including any consolidation loan 
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1 that was used jointly by the eligible public serv2 ant and his or her spouse to repay the Federal 

3 student loans of the spouse and the eligible 

4 public servant; 

5 (B) the portion incurred on behalf of the 

6 eligible victim (other than an eligible public 

7 servant), of a Federal student loan that is a 

8 consolidation loan that was used jointly by the 

9 eligible victim and his or her spouse, as deter10 mined in accordance with regulations of the 

11 Secretary, to repay the Federal student loans of 

12 the eligible victim and his or her spouse; 

13 (C) the portion of the consolidation loan 

14 indebtedness of an eligible parent that was in15 curred on behalf of an eligible victim; and 

16 (D) the PLUS loan indebtedness of an eli17 gible parent that was incurred on behalf of an 

18 eligible victim. 

19 (2) METHOD OF DISCHARGE OR CANCELLA20 TION.—A loan required to be discharged or canceled 

21 under paragraph (1) shall be discharged or canceled 

22 by the method used under section 437(a), 455(a)(1), 

23 or 464(c)(1)(F) of the Higher Education Act of 

24 1965 (20 U.S.C. 1087(a), 1087e(a)(1), 
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1 1087dd(c)(1)(F)), whichever is applicable to such 

2 loan. 

3 (c) FACILITATION OF CLAIMS.—The Secretary 

4 shall—

5 (1) establish procedures for the filing of appli6 cations for discharge or cancellation under this sec7 tion by regulations that shall be prescribed and pub8 lished within 90 days after the date of enactment of 

9 this Act and without regard to the requirements of 

10 section 553 of title 5, United States Code; and 

11 (2) take such actions as may be necessary to 

12 publicize the availability of discharge or cancellation 

13 of Federal student loan indebtedness under this sec14 tion. 

15 (d) AVAILABILITY OF FUNDS FOR PAYMENTS.—

16 Funds available for the purposes of making payments to 

17 lenders in accordance with section 437(a) for the dis18 charge of indebtedness of deceased or disabled individuals 

19 shall be available for making payments under section 

20 437(a) to lenders of loans as required by this section. 

21 (e) APPLICABLE TO OUTSTANDING DEBT.—The pro22 visions of this section shall be applied to discharge or can23 cel only Federal student loans (including consolidation 

24 loans) on which amounts were owed on September 11, 
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1 2001. Nothing in this section shall be construed to author2 ize any refunding of any repayment of a loan. 

3 TITLE X—AMENDMENTS TO 

4 OTHER EDUCATION LAWS 

5 PART A—EDUCATION OF THE DEAF ACT OF 1986

6 SEC. 1001. LAURENT CLERC NATIONAL DEAF EDUCATION 

7 CENTER. 

8 (a) GENERAL AUTHORITY.—Section 104(a)(1)(A) of 

9 the Education of the Deaf Act of 1986 (20 U.S.C. 

10 4304(a)(1)(A)) is amended by inserting after ‘‘maintain 

11 and operate’’ the following: ‘‘, at the Laurent Clerc Na12 tional Deaf Education Center,’’. 

13 (b) ADMINISTRATIVE REQUIREMENTS.—

14 (1) IN GENERAL.—Section 104(b) of the Edu15 cation of the Deaf Act of 1986 (20 U.S.C. 4304(b)) 

16 is amended—

17 (A) in the matter preceding subparagraph 

18 (A) of paragraph (1), by striking ‘‘elementary 

19 and secondary education programs’’ and insert20 ing ‘‘Laurent Clerc National Deaf Education 

21 Center’’; and 

22 (B) in paragraph (2), by striking ‘‘elemen23 tary and secondary education programs’’ and 

24 inserting ‘‘Laurent Clerc National Deaf Edu25 cation Center’’. 
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1 (2) ACADEMIC CONTENT STANDARDS, ACHIEVE2 MENT STANDARDS, AND ASSESSMENTS.—Section 

3 104(b) of the Education of the Deaf Act of 1986 

4 (20 U.S.C. 4304(b)) is amended by adding at the 

5 end the following new paragraph: 

6 ‘‘(5) The University, in consultation with the Sec7 retary, shall—

8 ‘‘(A) not later than the beginning of the 2006–

9 2007 academic year, adopt and implement academic 

10 content standards, academic achievement standards, 

11 and academic assessments as described in section 

12 1111(b) of the Elementary and Secondary Edu13 cation Act of 1965 for the Laurent Clerc National 

14 Deaf Education Center; 

15 ‘‘(B) develop adequate yearly progress stand16 ards for the Center as described in section 

17 1111(2)(C) of such Act; and 

18 ‘‘(C) make available to the public the results of 

19 such assessments, except in such case in which such 

20 reporting would not yield statistically reliable infor21 mation or would reveal personally identifiable infor22 mation about an individual student.’’. 

23 SEC. 1002. AUTHORITY. 

24 Section 111 of the Education of the Deaf Act of 1986 

25 (20 U.S.C. 4331) is amended by striking ‘‘the institution 
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1 of higher education with which the Secretary has an agree2 ment under this part’’ and inserting ‘‘the Rochester Insti3 tute of Technology’’. 

4 SEC. 1003. AGREEMENT FOR THE NATIONAL TECHNICAL IN5 STITUTE FOR THE DEAF. 

6 (a) GENERAL AUTHORITY.—Section 112(a) of the 

7 Education of the Deaf Act of 1986 (20 U.S.C. 4332(a)) 

8 is amended—

9 (1) in paragraph (1)—

10 (A) in the first sentence—

11 (i) by striking ‘‘an institution of high12 er education’’ and inserting ‘‘the Rochester 

13 Institute of Technology, Rochester, New 

14 York,’’; and 

15 (ii) by striking ‘‘of a’’ and inserting 

16 ‘‘of the’’; and 

17 (B) by striking the second sentence; and 

18 (2) in paragraph (2)—

19 (A) in the matter preceding subparagraph 

20 (A), by striking ‘‘the institution of higher edu21 cation with which the Secretary has an agree22 ment under this section’’ and inserting ‘‘the 

23 Rochester Institute of Technology’’; and 
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1 (B) in subparagraph (B), by striking ‘‘the 

2 institution’’ and inserting ‘‘the Rochester Insti3 tute of Technology’’. 

4 (b) PROVISIONS OF AGREEMENT.—Section 112(b) of 

5 the Education of the Deaf Act of 1986 (20 U.S.C. 

6 4332(b)) is amended—

7 (1) in paragraph (2), by striking ‘‘or other gov8 erning body of the institution’’ and inserting ‘‘of the 

9 Rochester Institute of Technology’’; and 

10 (2) in paragraph (3)—

11 (A) by striking ‘‘or other governing body of 

12 the institution’’ and inserting ‘‘of the Rochester 

13 Institute of Technology’’; 

14 (B) by striking ‘‘the institution of higher 

15 education under the agreement with the Sec16 retary’’ and inserting ‘‘the Rochester Institute 

17 of Technology by the National Technical Insti18 tute for the Deaf’’; and 

19 (C) by striking ‘‘Committee on Education 

20 and Labor of the House of Representatives and 

21 to the Committee on Labor and Human Re22 sources of the Senate’’ and inserting ‘‘Com23 mittee on Education and the Workforce of the 

24 House of Representatives and to the Committee 
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1 on Health, Education, Labor, and Pensions of 

2 the Senate’’. 

3 (c) LIMITATION.—Section 112(c) of the Education of 

4 the Deaf Act of 1986 (20 U.S.C. 4332(c)) is amended in 

5 paragraphs (1) and (2) by striking ‘‘institution’’ each 

6 place it appears and inserting ‘‘Rochester Institute of 

7 Technology’’. 

8 SEC. 1004. DEFINITIONS. 

9 Section 201 of the Education of the Deaf Act of 1986 

10 (20 U.S.C. 4351) is amended—

11 (1) by striking paragraph (3); 

12 (2) by redesignating paragraphs (4) through 

13 (7) as paragraphs (3) through (6), respectively; and 

14 (3) by adding at the end the following new 

15 paragraph: 

16 ‘‘(7) The term ‘RIT’ means the Rochester Insti17 tute of Technology.’’. 

18 SEC. 1005. AUDIT. 

19 (a) INDEPENDENT FINANCIAL AND COMPLIANCE

20 AUDIT.—Section 203(b)(1) of the Education of the Deaf 

21 Act of 1986 (20 U.S.C. 4353(b)(1)) is amended by strik22 ing the second sentence and inserting the following: 

23 ‘‘NTID shall have an annual independent financial and 

24 compliance audit made of RIT programs and activities, 

25 including NTID programs and activities.’’. 
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1 (b) COMPLIANCE.—Section 203(b)(2) of the Edu2 cation of the Deaf Act of 1986 (20 U.S.C. 4353(b)(2)) 

3 is amended by striking ‘‘sections’’ and all that follows 

4 through ‘‘section 207’’ and inserting ‘‘sections 102(b), 

5 105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c) 

6 through (f) of section 207’’. 

7 (c) SUBMISSION OF AUDITS.—Section 203(b)(3) of 

8 the Education of the Deaf Act of 1986 (20 U.S.C. 

9 4353(b)(3)) is amended—

10 (1) by inserting after ‘‘Secretary’’ the following: 

11 ‘‘and the Committee on Education and the Work12 force of the House of Representatives and the Com13 mittee on Health, Education, Labor, and Pensions 

14 of the Senate’’; and 

15 (2) by striking ‘‘or the institution authorized to 

16 establish and operate the NTID under section 

17 112(a)’’ and inserting ‘‘or RIT’’. 

18 (d) LIMITATIONS REGARDING EXPENDITURE OF

19 FUNDS.—Section 203(c)(2)(A) of the Education of the 

20 Deaf Act of 1986 (20 U.S.C. 4353(c)(2)(A)) is amended 

21 in the fifth sentence by striking ‘‘the Committee on Edu22 cation and Labor of the House of Representatives and the 

23 Committee on Labor and Human Resources of the Sen24 ate’’ and inserting ‘‘the Committee on Education and the 

25 Workforce of the House of Representatives and the Com-
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1 mittee on Health, Education, Labor, and Pensions of the 

2 Senate’’. 

3 SEC. 1006. REPORTS. 

4 (a) TECHNICAL AMENDMENTS.—Section 204 of the 

5 Education of the Deaf Act of 1986 (20 U.S.C. 4354) is 

6 amended in the matter preceding paragraph (1)—

7 (1) by striking ‘‘or other governing body of the 

8 institution of higher education with which the Sec9 retary has an agreement under section 112’’ and in10 serting ‘‘of RIT’’; and 

11 (2) by striking ‘‘Committee on Education and 

12 Labor of the House of Representatives and the Com13 mittee on Labor and Human Resources of the Sen14 ate’’ and inserting ‘‘Committee on Education and 

15 the Workforce of the House of Representatives and 

16 the Committee on Health, Education, Labor, and 

17 Pensions of the Senate’’. 

18 (b) CONTENTS OF REPORT.—Section 204 of the 

19 Education of the Deaf Act of 1986 (20 U.S.C. 4354) is 

20 amended—

21 (1) in paragraph (2)(C), by striking ‘‘upon 

22 graduation/completion’’ and inserting ‘‘within one 

23 year of graduation/completion’’; and 

24 (2) in paragraph (3)(B), by striking ‘‘of the in25 stitution of higher education with which the Sec-
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1 retary has an agreement under section 112, includ2 ing specific schedules and analyses for all NTID 

3 funds, as required under section 203’’ and inserting 

4 ‘‘of RIT programs and activities’’. 

5 SEC. 1007. LIAISON FOR EDUCATIONAL PROGRAMS. 

6 Section 206(a) of the Education of the Deaf Act of 

7 1986 (20 U.S.C. 4356(a)) is amended by striking ‘‘Not 

8 later than 30 days after the date of enactment of this Act, 

9 the’’ and inserting ‘‘The’’. 

10 SEC. 1008. FEDERAL ENDOWMENT PROGRAMS FOR GAL11 LAUDET UNIVERSITY AND THE NATIONAL 

12 TECHNICAL INSTITUTE FOR THE DEAF. 

13 Section 207(a)(2) of the Education of the Deaf Act 

14 of 1986 (20 U.S.C. 4357(a)(2)) is amended by striking 

15 ‘‘or other governing body of the institution of higher edu16 cation with which the Secretary has an agreement under 

17 section 112’’ and inserting ‘‘of RIT’’. 

18 SEC. 1009. OVERSIGHT AND EFFECT OF AGREEMENTS. 

19 Section 208(a) of the Education of the Deaf Act of 

20 1986 (20 U.S.C. 4359(a)) is amended—

21 (1) by striking ‘‘the institution of higher edu22 cation with which the Secretary has an agreement 

23 under part B of title I’’ and inserting ‘‘RIT’’; and 

24 (2) by striking ‘‘Committee on Labor and 

25 Human Resources of the Senate and the Committee 
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1 on Education and Labor of the House of Represent2 atives’’ and inserting ‘‘Committee on Education and 

3 the Workforce of the House of Representatives and 

4 the Committee on Health, Education, Labor, and 

5 Pensions of the Senate’’. 

6 SEC. 1010. AUTHORIZATION OF APPROPRIATIONS. 

7 (a) MONITORING AND EVALUATION ACTIVITIES.—

8 Section 205(c) of the Education of the Deaf Act of 1986 

9 (20 U.S.C. 4355(c)) is amended by striking ‘‘fiscal years 

10 1998 through 2003’’ and inserting ‘‘fiscal years 2004 

11 through 2009’’. 

12 (b) FEDERAL ENDOWMENT PROGRAMS FOR GAL13 LAUDET UNIVERSITY AND THE NATIONAL TECHNICAL IN14 STITUTE FOR THE DEAF.—Section 207(h) of the Edu15 cation of the Deaf Act of 1986 (20 U.S.C. 4357(h)) is 

16 amended in paragraphs (1) and (2) by striking ‘‘fiscal 

17 years 1998 through 2003’’ each place it appears and in18 serting ‘‘fiscal years 2004 through 2009’’. 

19 (c) GENERAL AUTHORIZATION OF APPROPRIA20 TIONS.—Section 212 of the Education of the Deaf Act of 

21 1986 (20 U.S.C. 4360a) is amended—

22 (1) in the matter preceding paragraph (1) in 

23 subsection (a), by striking ‘‘fiscal years 1998 

24 through 2003’’ and inserting ‘‘fiscal years 2004 

25 through 2009’’; and 
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1 (2) in subsection (b), by striking ‘‘fiscal years 

2 1998 through 2003’’ and inserting ‘‘fiscal years 

3 2004 through 2009’’. 

4 PART B—ADDITIONAL EDUCATION LAWS 

5 SEC. 1021. AMENDMENT TO HIGHER EDUCATION AMEND6 MENTS OF 1998. 

7 (a) REPEALS OF EXPIRED AND EXECUTED PROVI8 SIONS.—The following provisions of the Higher Education 

9 Amendments of 1998 are repealed: 

10 (1) STUDY OF MARKET MECHANISMS IN FED11 ERAL STUDENT LOAN PROGRAMS.—Section 801 (20 

12 U.S.C. 1018 note). 

13 (2) STUDY OF FEASIBILITY OF ALTERNATE FI14 NANCIAL INSTRUMENTS FOR DETERMINING LENDER

15 YIELDS.—Section 802. 

16 (3) STUDENT RELATED DEBT STUDY.—Section 

17 803 (20 U.S.C. 1015 note) 

18 (4) STUDY OF OPPORTUNITIES FOR PARTICIPA19 TION IN ATHLETIC PROGRAMS.—Section 805 (20 

20 U.S.C. 1001 note). 

21 (5) COMMUNITY SCHOLARSHIP MOBILIZA22 TION.—Part C (20 U.S.C. 1070 note). 

23 (6) INCARCERATED YOUTH.—Part D (20 

24 U.S.C. 1151). 
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1 (7) IMPROVING UNITED STATES UNDER2 STANDING OF SCIENCE, ENGINEERING, AND TECH3 NOLOGY IN EAST ASIA.—Part F (20 U.S.C. 1862 

4 note). 

5 (8) WEB-BASED EDUCATION COMMISSION.—

6 Part J. 

7 (b) EXTENSIONS OF AUTHORIZATIONS AND STUD8 IES.—

9 (1) TRANSFER OF CREDIT.—Section 804(b) (20 

10 U.S.C. 1099b note) is amended—

11 (A) by striking ‘‘one year after the date of 

12 enactment of this Act’’ and inserting ‘‘Sep13 tember 30, 2006’’; and 

14 (B) by inserting ‘‘and policies of institu15 tions of higher education’’ after ‘‘agencies or 

16 associations’’. 

17 (2) COHORT DEFAULT RATE STUDY.—Section 

18 806 is amended—

19 (A) in subsection (a), by striking ‘‘higher 

20 education at which less’’ and inserting ‘‘higher 

21 education. The study shall also review the effect 

22 of cohort default rates specifically on institu23 tions of higher education at which less’’; and 
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1 (B) in subsection (c), by striking ‘‘Sep2 tember 30, 1999,’’ and inserting ‘‘September 

3 30, 2006,’’. 

4 (3) VIOLENCE AGAINST WOMEN.—Section 826 

5 (20 U.S.C. 1152) is amended—

6 (A) in subsection (g)—

7 (i) by striking ‘‘1999’’ and inserting 

8 ‘‘2005’’; and 

9 (ii) by striking ‘‘4 succeeding’’ and in10 serting ‘‘5 succeeding’’; and 

11 (B) by redesignating subsections (f) and 

12 (g) as subsections (e) and (f), respectively. 

13 (4) UNDERGROUND RAILROAD.—Subsection (c) 

14 of section 841 (20 U.S.C. 1153(c)) is amended to 

15 read as follows: 

16 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to carry out this section 

18 $3,000,000 for fiscal year 2005 and such sums as may 

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

20 (c) DISBURSEMENT OF STUDENT LOANS.—Section 

21 422(d) of the Higher Education Amendments of 1998 

22 (Public Law 105–244; 112 Stat. 1696) is amended by 

23 adding at the end the following new sentence: ‘‘Such 

24 amendments shall also be effective on and after July 1, 

25 2005.’’. 
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1 SEC. 1022. TRIBALLY CONTROLLED COLLEGE OR UNIVER2 SITY ASSISTANCE ACT OF 1978. 

3 (a) TITLE I AUTHORIZATION.—Section 110(a) of the 

4 Tribally Controlled Community College or University As5 sistance Act of 1978 (25 U.S.C. 1810(a)) is amended—

6 (1) by striking ‘‘1999’’ each place it appears 

7 and inserting ‘‘2005’’; and 

8 (2) by striking ‘‘4 succeeding’’ each place it ap9 pears and inserting ‘‘5 succeeding’’. 

10 (b) TITLE III REAUTHORIZATION.—Section 306(a) 

11 of the Tribally Controlled Community College or Univer12 sity Assistance Act of 1978 (25 U.S.C. 1836(a)) is amend13 ed—

14 (1) by striking ‘‘1999’’ and inserting ‘‘2005’’; 

15 and 

16 (2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 

17 succeeding’’. 

18 (c) TITLE IV REAUTHORIZATION.—Section 403 of 

19 the Tribal Economic Development and Technology Re20 lated Education Assistance Act of 1990 (25 U.S.C. 1852) 

21 is amended—

22 (1) by striking ‘‘1999’’ and inserting ‘‘2005’’; 

23 and 

24 (2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 

25 succeeding’’. 
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1 (d) ADDITIONAL AMENDMENTS.—The Tribally Con2 trolled Community College or University Assistance Act 

3 of 1978 is further amended—

4 (1) in section 2(a)(6) (25 U.S.C. 1801(a)(6)), 

5 by striking ‘‘in the field of Indian education’’ and in6 serting ‘‘in the field of Tribal Colleges and Univer7 sities and Indian higher education’’; 

8 (2) in section 2(b), by striking paragraph (5) 

9 and inserting the following: 

10 ‘‘(5) Eligible credits earned in a continuing 

11 education program shall be determined as one credit 

12 for every 10 contact hours for institutions on a 

13 quarter system, and 15 contact hours for institu14 tions on a semester system, of participation in an or15 ganized continuing education experience under re16 sponsible sponsorship, capable direction, and quali17 fied instruction, as described in the criteria estab18 lished by the International Association for Con19 tinuing Education and Training, and may not exceed 

20 20 percent of an institution’s total Indian student 

21 count.’’; and 

22 (3) in section 103 (25 U.S.C. 1804), by striking 

23 ‘‘and’’ at the end of paragraph (2), by striking the 

24 period at the end of paragraph (3) and inserting ‘‘; 
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1 and’’, and by inserting after paragraph (3) the fol2 lowing new paragraph: 

3 ‘‘(4) has been accredited by a nationally recog4 nized accrediting agency or association determined 

5 by the Secretary of Education to be a reliable au6 thority as to the quality of training offered, or is, ac7 cording to such an agency or association, making 

8 reasonable progress toward accreditation.’’. 

9 SEC. 1023. NAVAJO COMMUNITY COLLEGE ACT. 

10 Section 5(a)(1) of the Navajo Community College Act 

11 (25 U.S.C. 640c–1(a)(1)) is amended—

12 (1) by striking ‘‘1999’’ and inserting ‘‘2005’’; 

13 and 

14 (2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 

15 succeeding’’. 

16 SEC. 1024. EDUCATION AMENDMENTS OF 1992. 

17 Section 1543(d) of the Education Amendments of 

18 1992 (20 U.S.C. 1070 note) is amended—

19 (1) by striking ‘‘1999’’ and inserting ‘‘2005’’; 

20 and 

21 (2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 

22 succeeding’’. 
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1 SEC. 1025. STUDY OF STUDENT LEARNING OUTCOMES AND 

2 PUBLIC ACCOUNTABILITY. 

3 (a) STUDY REQUIRED.—The Secretary shall provide 

4 for the conduct a study of the best practices of States in 

5 assessing undergraduate postsecondary student learning, 

6 particularly as such practices relate to public account7 ability systems. 

8 (b) CHARACTERISTICS OF THE ASSOCIATION.—Such 

9 study shall be conducted by an association or organization 

10 with specific expertise and knowledge in state practices 

11 and access to necessary state officials (in this section re12 ferred to as the ‘‘association’’). The association respon13 sible for the study under this section shall be a national, 

14 non-partisan or bi-partisan entity representing States or 

15 State officials with expertise in evaluative and qualitative 

16 policy research for best practice models, the capacity to 

17 convene experts, and to formulate policy recommenda18 tions. 

19 (c) REQUIRED SUBJECTS OF STUDY.—In performing 

20 the study, the association shall, at a minimum, examine 

21 the following: 

22 (1) The current status of institutional and state 

23 efforts to embed student learning assessments into 

24 the state-level public accountability frameworks. 

25 (2) The extent to which there is commonality 

26 among educators and accrediting agencies on learn-
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1 ing standards for the associates and bachelors de2 grees. 

3 (3) The reliability, rigor, and generalizability of 

4 available instruments to assess general education at 

5 the undergraduate level. 

6 (4) Roles and responsibilities for public ac7 countability for student learning. 

8 (d) CONSULTATION.—

9 (1) NATIONAL COMMITTEE.—The association 

10 shall establish and consult with a national com11 mittee. The committee shall meet not less than twice 

12 a year to review the research, identify best practice 

13 models, and review recommendations. 

14 (2) MEMBERSHIP.—The national advisory com15 mittee shall consist of a representative of the Sec16 retary of Education and individuals with expertise 

17 in—

18 (A) State accountability systems; 

19 (B) student learning assessments; 

20 (C) student flow data; 

21 (D) transitions between K–12 and higher 

22 education; and 

23 (E) federal higher education policy. 
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1 (3) ADDITIONAL EXPERTISE.—The association 

2 may augment this committee with other expertise, as 

3 appropriate. 

4 (e) CONGRESSIONAL CONSULTATION.—The associa5 tion shall consult on a regular basis with the Committee 

6 on Education and the Workforce of the House of Rep7 resentatives and the Committee on Health Education 

8 Labor and Pensions of the Senate in carrying out the 

9 study required by this section. 

10 (f) REPORT.—The association shall, not later than 

11 two years after the date of enactment of this Act, prepare 

12 and submit a report on the study required by this section 

13 to the Committee on Education and the Workforce of the 

14 House of Representatives and the Committee on Health, 

15 Education, Labor, and Pensions of the Senate.

Æ