Opportunities for Success Act of 2013

To establish a grant program to issue grants to institutions of higher education to support student internships. 1. Short title This Act may be cited as the Opportunities for Success Act of 2013 2. Findings Congress finds the following: (1) Internships are increasingly important to the ability of college students to gain skills, make professional connections, and find jobs after graduation. (2) In 2011, according to the National Association of Colleges and Employers, employers offered full-time positions to 61.2 percent of their interns with an acceptance rate of 86.5 percent. (3) Many students struggle to make ends meet; 66 percent of young community college students dedicate more than 20 hours a week to an outside job, and the need of many students to maintain a part-time or full-time job reduces or eliminates the time available for an internship. (4) Internships often require significant time commitments or temporary relocation, which many students are unable to afford; these additional living expenses include housing, meals, and travel, and these costs make unpaid internships with employers like non-profit organizations and government even more inaccessible for those with low and middle incomes. (5) In 2011, 46 percent of students who had completed an internship were offered jobs, compared with 31 percent of students who did not complete an internship; more than 76 percent of employers rank relevant experience as the most important quality when hiring. (6) Many university officials and employers acknowledge that participating in an undergraduate internship is extremely helpful for finding meaningful employment in today’s job market. 3. Opportunities for success program (a) Program authorized From the amounts made available to carry out this Act, the Secretary of Education shall establish a grant program to award grants to qualifying educational institutions in accordance with this section in order to support eligible students attending such institutions during internships. (b) Application To receive a grant under this section, a qualifying educational institution shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (c) Use of funds by qualifying educational institutions A qualifying educational institution receiving a grant under this section shall use the grant funds in accordance with the following: (1) Activities Such institution may only use the grant to fund internship awards in accordance with this section to eligible students enrolled at the institution. (2) Administration of internship awards Internship awards made from the grant— (A) shall be administered by the financial aid office of such institution; and (B) may be administered in conjunction with the career development office and career center of such institution. (3) Prohibition on alteration of financial aid A student’s receipt of an internship award from a grant under this section shall not be taken into account in determining the need or eligibility of the student for financial assistance under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). (4) Supplement not supplant Funds made available to carry out this section shall be used to supplement, and not supplant, other Federal and State funds available to carry out the activities described in this section. (5) Deadline for summer internships Such institution shall make an award for a summer internship under this section by June 30 of a calendar year preceding the first day of the summer internship for that year. (d) Calculating award amounts (1) Amount to qualifying educational institutions (A) In general In determining a grant amount for a qualifying educational institution under this section, the Secretary shall ensure that the institution’s grant is equal to an amount that bears the same relationship to the total funds available to carry out this section for a fiscal year as the number of eligible students enrolled at the institution (as determined by the Secretary on the basis of the most recent satisfactory data) bears to the total number of eligible students enrolled at all qualifying educational institutions, as so determined. (B) Reallocation If a qualifying educational institution does not receive funds under this paragraph, the Secretary shall reallocate such funds to other qualifying educational institutions in the same proportion funds are allocated under subparagraph (A) (C) Exception In the case of a qualifying educational institution that does not award all of the grant funds received under this section for a fiscal year to eligible students in accordance with this section, the Secretary, in awarding grants under this section for the succeeding fiscal year— (i) shall reallocate the unused funds to other qualifying educational institutions in the same proportion funds are allocated under subparagraph (A) (ii) may award such institution a grant in an amount that is less than the full grant amount such institution would have otherwise received under subparagraph (A) (2) Student award parameters (A) Maximum student award A student receiving an award of funds from a grant to a qualifying educational institution under this section may not receive— (i) more than $5,000 from such grant if the award is for a full-time internship; and (ii) more than $2,500 from such grant if the award is for a part-time internship. (B) Calculation of student award (i) Unpaid internships (I) Awards for in-school students Subject to subparagraph (A), in the case of a student receiving an award for an unpaid internship that occurs during a period of enrollment at the awarding qualifying educational institution, the amount of the award shall be, to the extent practicable, an amount based on the higher of— (aa) the applicable Federal minimum wage by each hour of the internship; or (bb) the applicable State minimum wage of the State in which the institution is located by each hour of the internship. (II) Awards for students during summer and winter terms (aa) In general Subject to subparagraph (A), in the case of a student receiving an award for an unpaid internship that occurs during a period of nonattendance at the awarding educational institution, the amount of the award shall, to the extent practicable, be an amount that covers reasonable cost of living expenses for the student. (bb) Reasonable cost of living expenses For purposes of item (aa), reasonable cost of living expenses (AA) the location of the internship; (BB) the length of the internship; (CC) travel costs associated with the internship; (DD) housing costs during the duration of the internship; (EE) meal costs during the duration of the internship; and (FF) whether the internship is full-time or part-time. (ii) Paid internships In the case of a student receiving an award for a paid internship, the amount of the award shall be determined by reducing the amount such student would receive for an unpaid internship as calculated under clause (i) by the amount of income that the internship will provide to the student. (e) Awards non-Taxable An award received by a student under this section shall not be considered taxable income. (f) Carry-Back authorized A qualifying educational institution receiving a grant under this section for a fiscal year may use such grant funds to make internship awards under this section prior to the beginning of the fiscal year, but after the end of the previous academic year. (g) Reports Not later than 1 year after the date of enactment of this Act and each succeeding year in which the Secretary makes grants under this section, the Secretary shall submit to Congress a report detailing, with regard to grants made under this section for the previous academic year— (1) the percentage of students receiving internship funds from grants under this section who, not later than 2 years after graduating from a qualifying educational institution, are hired in a field related to the internship for which the students received such funds; (2) the number of qualifying educational institutions receiving grants under this section; (3) the categories of qualifying educational institutions (such as 4-year public institutions, 4-year private, nonprofit institutions, 2-year public institutions, and 2-year private, nonprofit institutions) receiving grants under this section; (4) the number of students receiving internship funds from grants under this section, and the degrees such students are pursuing; (5) the number of paid internships, and the number of unpaid internships, funded by such grants; (6) the locations of internships funded by such grants; (7) the number of students who used internship funds awarded under this section to complete an internship more than 60 miles from the qualifying educational institution that made such award or that required the students to temporarily relocate for the duration of the internship; and (8) the types of internships (such as full-time summer internships, part-time summer internship, or part-time semester internships) completed by students receiving awards funded by such grants. (h) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out this section, including regulations that provide guidance to qualifying educational institutions on how to determine whether an internship meets the requirements of subclauses (I) through (III) of subsection (i)(1)(F)(vi). (i) Definitions For purposes of this section: (1) Eligible student The term eligible student (A) is a full-time or half-time student (as such terms are defined in section 668.2 (B) is eligible for a Federal Pell Grant under section 401 of the Higher Education Act of 1965 ( 20 U.S.C. 1070a et seq. (C) is enrolled at a qualifying educational institution in a program of study that leads to an associate’s or bachelor’s degree; (D) if the student has accepted an internship during a period of nonattendance at a qualifying educational institution— (i) demonstrates that the student is planning to re-enroll at such institution for the next period of enrollment at such institution by registering for such period of enrollment at the institution or accepting the institution’s offer of admittance for such period of enrollment; and (ii) will be eligible for a Federal Pell Grant under section 401 of such Act (20 U.S.C. 1070a et seq.), for such period of enrollment; (E) has not, while pursuing the same degree that such student is currently pursuing, previously received an award that included funds granted under subsection (a) to a qualifying educational institution; and (F) has received an official internship offer, as defined by the Secretary in regulations, for an internship that— (i) is located within the United States; (ii) in a case in which the internship employs (as defined under section 3(g) of the Fair Labor Standards Act (29 U.S.C. 203(g)) the student, meets the requirements of such Act (29 U.S.C. 201 et seq.); (iii) is a full-time summer internship, a part-time summer internship, or a part-time semester internship; (iv) is not less than 4 weeks in duration, and is not greater in duration than the shorter of— (I) the length of a standard academic period at the qualifying educational institution; or (II) in the case of an internship that occurs during a period of nonattendance at the awarding qualifying educational institution, 10 weeks, or in the case of an internship that occurs during a period of attendance at the awarding qualifying educational institution, 12 weeks; (v) is— (I) an unpaid internship; or (II) a paid internship that, according to the determination of the qualifying educational institution, without an award under this section such student would otherwise be unable to afford participating in such internship; and (vi) is determined by the qualifying educational institution to be an internship that— (I) is of good and reputable quality; (II) affords adequate educational or skill-building opportunities; and (III) is reasonably associated with the student’s course of study at a qualifying educational institution. (2) Full-time The term full-time (3) Qualifying educational institution The term qualifying educational institution institution of higher education 20 U.S.C. 1001(a) (4) Part-time The term part-time (5) Period of nonattendence The term period of nonattendence (6) Secretary The term Secretary

Summary: Opportunities for Success Act of 2013 - Directs the Secretary of Education to award grants to institutions of higher education for use in providing their students with financial support to engage in internships reasonably associated with their studies. Requires support recipients to be full-time or half-time students who are eligible for Federal Pell Grants. Sets the student support level for unpaid internships at: (1) the higher of the federal or state minimum wage for each hour of the internship, if the internship occurs while the student is enrolled in classes; and (2) the student's reasonable cost of living expenses, if the internship occurs while the student is not enrolled in classes. Sets the support level for paid internships by reducing the amount the student would receive for an unpaid internship by the amount the paid internship provides to the student. Caps the total support a student may receive for full-time and part-time internships. Makes that support nontaxable and excludes it from the calculation of a student's need or eligibility for financial assistance under title IV (Student Assistance) of the Higher Education Act of 1965.