208 
ment of the College Access and Opportunity Act of 
2007, who— 
‘‘(A) has been employed full-time for at 
least 5 consecutive complete school, academic, 
or calendar years, as appropriate, in an area of 
national need described in subsection (c); and 
‘‘(B) is not in default on a loan for which 
the borrower seeks forgiveness. 
‘‘(2) AWARD
BASIS.—Loan repayment under 
this section shall be on a first-come, first-served 
basis on behalf of borrowers employed in an area of 
national need described in subsection (c) and subject 
to the availability of appropriations. 
‘‘(3) REGULATIONS.—The Secretary is author-
ized to issue such regulations as may be necessary 
to carry out the provisions of this section. 
‘‘(c) AREAS OF NATIONAL NEED.— 
‘‘(1) STATUTORY CATEGORIES.—For purposes 
of this section, an individual shall be treated as em-
ployed in an area of national need if the individual 
is employed full time and is any of the following: 
‘‘(A) EARLY CHILDHOOD EDUCATORS.—An 
individual who is employed as an early child-
hood educator in an eligible preschool program 
or child care facility in a low-income commu-
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209 
nity, and who is involved directly in the care, 
development and education of infants, toddlers, 
or young children through age five. 
‘‘(B) NURSES.—An individual who is em-
ployed— 
‘‘(i) as a nurse in a clinical setting; or 
‘‘(ii) as a member of the nursing fac-
ulty at an accredited school of nursing (as 
those terms are defined in section 801 of 
the Public Health Service Act (42 U.S.C. 
296)). 
‘‘(C) FOREIGN LANGUAGE SPECIALISTS.— 
An individual who has obtained a baccalaureate 
degree in a critical foreign language and is em-
ployed— 
‘‘(i) in an elementary or secondary 
school as a highly qualified teacher (as 
such term is defined in section 9101 of the 
Elementary and Secondary Education Act 
of 1965) of a critical foreign language; or 
‘‘(ii) in an agency of the United 
States Government in a position that regu-
larly requires the use of such critical for-
eign language. 
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210 
‘‘(D) 
SPEECH-LANGUAGE
PATHOLO-
GISTS.—An individual who is a speech-language 
pathologist, who is employed in an eligible pre-
school program or an elementary or secondary 
school, and who has, at a minimum, a graduate 
degree in speech-language pathology, or com-
munication sciences and disorders. 
‘‘(E) MEDICAL
SPECIALISTS.—An indi-
vidual who— 
‘‘(i) has received his or her degree 
from an accredited medical school (as ac-
credited by the Liaison Committee on Med-
ical Education or as defined by this title 
IV); and 
‘‘(ii)(I) has been accepted to, or cur-
rently participates in, a graduate medical 
education training program or fellowship 
(or both) to provide health care services 
(as recognized by the Accreditation Council 
for Graduate Medical Education); or 
‘‘(II) has been accepted into, or cur-
rently participates in, a graduate medical 
education program or fellowship (or both) 
to provide health care services that— 
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211 
‘‘(aa) requires more than 5 years 
of total graduate medical training; 
and 
‘‘(bb) has fewer United States 
medical school graduate applicants 
than the total number of training and 
fellowship positions available in the 
programs specified in subclause (I) of 
this clause. 
‘‘(F) ADDITIONAL
AREAS
OF
NATIONAL 
NEED.—An individual who is employed in an 
area designated by the Secretary under para-
graph (2) and has completed a baccalaureate or 
advanced degree related to such area. 
‘‘(2) DESIGNATION
OF
AREAS
OF
NATIONAL 
NEED.—After consultation with appropriate Federal, 
State, and community-based agencies and organiza-
tions, the Secretary shall designate areas of national 
need. In making such designations, the Secretary 
shall take into account the extent to which— 
‘‘(A) the national interest in the area is 
compelling; 
‘‘(B) the area suffers from a critical lack 
of qualified personnel; and 
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212 
‘‘(C) other Federal programs support the 
area concerned. 
‘‘(d) QUALIFIED LOAN AMOUNT.—Subject to sub-
section (b)(2), the Secretary shall repay not more than 
$5,000 in the aggregate of the loan obligation on a loan 
made under section 428 or 428H that is outstanding after 
the completion of the fifth consecutive school, academic, 
or calendar year, as appropriate, described in subsection 
(b)(1). 
‘‘(e) CONSTRUCTION.—Nothing in this section shall 
be construed to authorize the refunding of any repayment 
of a loan made under section 428 or 428H. 
‘‘(f) INELIGIBILITY OF NATIONAL SERVICE AWARD 
RECIPIENTS.—No student borrower may, for the same 
service, receive a benefit under both this section and sub-
title D of title I of the National and Community Service 
Act of 1990 (42 U.S.C. 12601 et seq.). 
‘‘(g) INELIGIBILITY FOR DOUBLE BENEFITS.—No 
borrower may receive a reduction of loan obligations under 
both this section and section 428J or 460. 
‘‘(h) DEFINITIONS.—In this section 
‘‘(1) CHILD CARE FACILITY.—The term ‘child 
care facility’ means a facility, including a home, 
that— 
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213 
‘‘(A) provides for the education and care of 
children from birth through age 5; and 
‘‘(B) meets any applicable State or local 
government licensing, certification, approval, or 
registration requirements. 
‘‘(2) CRITICAL FOREIGN LANGUAGE.—The term 
‘critical foreign language’ includes the languages of 
Arabic, Korean, Japanese, Chinese, Pashto, Persian- 
Farsi, Serbian-Croatian, Russian, Portuguese, and 
any other language identified by the Secretary of 
Education, in consultation with the Defense Lan-
guage Institute, the Foreign Service Institute, and 
the National Security Education Program, as a crit-
ical foreign language need. 
‘‘(3) 
EARLY
CHILDHOOD
EDUCATOR.—The 
term ‘early childhood educator’ means an early 
childhood educator employed in an eligible preschool 
program who has completed a baccalaureate or ad-
vanced degree in early childhood development, early 
childhood education, or in a field related to early 
childhood education. 
‘‘(4) ELIGIBLE
PRESCHOOL
PROGRAM.—The 
term ‘eligible preschool program’ means a program 
that provides for the care, development, and edu-
cation of infants, toddlers, or young children 
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214 
through age 5, meets any applicable State or local 
government licensing, certification, approval, and 
registration requirements, and is operated by— 
‘‘(A) a public or private school that may be 
supported, sponsored, supervised, or adminis-
tered by a local educational agency; 
‘‘(B) a Head Start agency serving as a 
grantee designated under the Head Start Act 
(42 U.S.C. 9831 et seq.); 
‘‘(C) a nonprofit or community based orga-
nization; or 
‘‘(D) a child care program, including a 
home. 
‘‘(5) LOW-INCOME COMMUNITY.—In this sub-
section, the term ‘low-income community’ means a 
community in which 70 percent of households earn 
less than 85 percent of the State median household 
income. 
‘‘(6) NURSE.—The term ‘nurse’ means a nurse 
who meets all of the following: 
‘‘(A) The nurse graduated from an accred-
ited school of nursing (as those terms are de-
fined in section 801 of the Public Health Serv-
ice Act (42 U.S.C. 296)). 
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215 
‘‘(B) The nurse holds a valid and unre-
stricted license to practice nursing in the State 
in which the nurse practices in a clinical setting 
or from an accredited school of nursing (as 
those terms are defined in section 801 of the 
Public Health Service Act (42 U.S.C. 296)). 
‘‘(C) The nurse holds one or more of the 
following: 
‘‘(i) A graduate degree in nursing, or 
an equivalent degree. 
‘‘(ii) A nursing degree from a colle-
giate school of nursing (as defined in sec-
tion 801 of the Public Health Service Act 
(42 U.S.C. 296)). 
‘‘(iii) A nursing degree from an asso-
ciate degree school of nursing (as defined 
in section 801 of the Public Health Service 
Act (42 U.S.C. 296)). 
‘‘(iv) A nursing degree from a diploma 
school of nursing (as defined in section 
801 of the Public Health Service Act (42 
U.S.C. 296)). 
‘‘(7) SPEECH-LANGUAGE
PATHOLOGIST.—The 
term ‘speech-language pathologist’ means a speech- 
language pathologist who meets all of the following: 
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216 
‘‘(A) the speech-language pathologist has 
received, at a minimum, a graduate degree in 
speech-language pathology or communication 
sciences and disorders from an institution of 
higher education; and 
‘‘(B) 
the 
speech-language 
pathologist 
meets or exceeds the qualifications as defined in 
section 1861(ll) of the Social Security Act (42 
U.S.C. 1395x). 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary for fiscal year 2008 and 
such sums as may be necessary for each of the 5 suc-
ceeding fiscal years.’’. 
SEC. 423. ADDITIONAL ADMINISTRATIVE PROVISIONS. 
(a) REPAYMENT PLANS.—Section 428(b)(9)(A) (20 
U.S.C. 1078(b)(9)(A)) is amended by inserting before the 
semicolon at the end of clause (ii) the following: ‘‘, and 
the Secretary may not restrict the proportions or ratios 
by which such payments may be graduated with the in-
formed agreement of the borrower’’. 
(b) ADDITIONAL CLARIFICATION ON INDUCEMENTS, 
PAYMENTS, MAILINGS, AND ADVERTISING BY GUARANTY 
AGENCIES.—Section 428(b) (20 U.S.C. 1078(b)) is 
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217 
amended by striking paragraph (3) and inserting the fol-
lowing: 
‘‘(3) RESTRICTIONS
ON
INDUCEMENTS, PAY-
MENTS, MAILINGS, AND ADVERTISING.—A guaranty 
agency shall not— 
‘‘(A) offer, directly or indirectly, premiums, 
payments, stock or other securities, prizes, trav-
el, entertainment expenses, tuition repayment, 
or other inducements to— 
‘‘(i) any institution of higher edu-
cation or the employees of an institution of 
higher education in order to secure appli-
cants for loans made under this part; or 
‘‘(ii) any lender, or any agent, em-
ployee, or independent contractor of any 
lender or guaranty agency, in order to ad-
minister or market loans made under this 
part (other than a loan made under section 
428H or a loan made as part of the guar-
anty agency’s lender-of-last-resort program 
pursuant to section 439(q)) for the pur-
pose of securing the designation of the 
guaranty agency as the insurer of such 
loans; 
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218 
‘‘(B) conduct unsolicited mailings, by post-
al or electronic means, of educational loan ap-
plication forms to students enrolled in sec-
ondary school or postsecondary educational in-
stitutions, or to the parents of such students, 
except that applications may be mailed, by post-
al or electronic means, to students or borrowers 
who have previously received loans guaranteed 
under this part by the guaranty agency; 
‘‘(C) perform, for an institution of higher 
education participating in a program under this 
title, any function that the institution is re-
quired to perform under part B, D, or G; 
‘‘(D) pay, on behalf of the institution of 
higher education, another person to perform 
any function that the institution of higher edu-
cation is required to perform under part B, D, 
or G; or 
‘‘(E) conduct fraudulent or misleading ad-
vertising concerning loan availability, terms, or 
conditions. 
It shall not be a violation of this paragraph for a 
guaranty agency to provide technical assistance to 
institutions of higher education comparable to the 
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219 
technical assistance provided to institutions of high-
er education by the Department.’’. 
(c) COUNTING OF CONSOLIDATION LOANS AGAINST 
LIMITS.— 
(1) AMENDMENT.—Section 428C(a)(3)(B) (20 
U.S.C. 1078–3(a)(3)(B)) is amended by adding at 
the end the following new clause: 
‘‘(ii) Loans made under this section shall, to 
the extent used to pay off the outstanding principal 
balance on loans made under this title, excluding 
capitalized interest, be counted against the applica-
ble limitations on aggregate indebtedness contained 
in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, 
and 464(a)(2)(B).’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to any 
loan made, insured, or guaranteed under part B or 
part D of title IV of the Higher Education Act of 
1965 for which the first disbursement of principal is 
made on or after the date of enactment of this Act. 
(d) VOLUNTARY FLEXIBLE AGREEMENTS.—Section 
428A(c) (20 U.S.C. 1078–1(c)) is amended by striking 
paragraph (3) and inserting the following: 
‘‘(3) NOTICE TO INTERESTED PARTIES.—Once 
the Secretary reaches a tentative agreement in prin-
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220 
ciple under this section, the Secretary shall publish 
in the Federal Register a notice that invites inter-
ested parties to comment on the proposed agree-
ment. The notice shall state how to obtain a copy of 
the tentative agreement in principle and shall give 
interested parties no less than 30 days to provide 
comments. The Secretary may consider such com-
ments prior to providing the notices pursuant to 
paragraph (2).’’. 
(e) FINANCIAL AND ECONOMIC LITERACY.— 
(1) DEFAULT REDUCTION PROGRAM.—Section 
428F is amended by adding at the end the following: 
‘‘(c) FINANCIAL AND ECONOMIC LITERACY.—Where 
appropriate, each program described under subsection (b) 
shall include making available financial and economic edu-
cation materials for the borrower.’’. 
(2) PROGRAM ASSISTANCE FOR BORROWERS.— 
Section 432(k)(1) (20 U.S.C. 1082(k)(1)) is amend-
ed by striking ‘‘and offering’’ and all that follows 
through the period and inserting ‘‘, offering loan re-
payment matching provisions as part of employee 
benefit packages, and providing employees with fi-
nancial and economic education and counseling.’’. 
(f) 
CREDIT
BUREAU
ORGANIZATION
AGREE-
MENTS.—Section 430A(a) (20 U.S.C. 1080a(a)) is 
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221 
amended by striking ‘‘agreements with credit bureau orga-
nizations’’ and inserting ‘‘an agreement with each national 
credit bureau organization (as described in section 603(p) 
of the Fair Credit Reporting Act)’’. 
(g) DEFAULT REDUCTION MANAGEMENT.—Section 
432 is further amended— 
(1) by striking subsection (n); and 
(2) by redesignating subsections (o) and (p) as 
subsections (n) and (o), respectively. 
(h) DEFINITION
OF ELIGIBLE LENDER.—Section 
435(d)(5) (20 U.S.C. 1085(d)(5)) is amended— 
(1) by redesignating subparagraphs (C) and 
(D) as subparagraphs (H) and (I), respectively; and 
(2) by striking subparagraphs (A) and (B) and 
inserting the following: 
‘‘(A) offered, directly or indirectly, points, 
premiums, payments (including payments for 
referrals and for processing or finder fees), 
prizes, stock or other securities, travel, enter-
tainment expenses, tuition repayment, the pro-
vision of information technology equipment at 
below-market value, additional financial aid 
funds, or other inducements to any institution 
of higher education or any employee of an insti-
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222 
tution of higher education in order to secure 
applicants for loans under this part; 
‘‘(B) conducted unsolicited mailings, by 
postal or electronic means, of student loan ap-
plication forms to students enrolled in sec-
ondary school or postsecondary institutions, or 
to parents of such students, except that applica-
tions may be mailed, by postal or electronic 
means, to students or borrowers who have pre-
viously received loans under this part from such 
lender; 
‘‘(C) entered into any type of consulting 
arrangement, or other contract to provide serv-
ices to a lender, with an employee who is em-
ployed in the financial aid office of an institu-
tion of higher education, or who otherwise has 
responsibilities with respect to student loans or 
other financial aid of the institution; 
‘‘(D) compensated an employee who is em-
ployed in the financial aid office of an institu-
tion of higher education, or who otherwise has 
responsibilities with respect to educational loans 
or other financial aid of the institution, and 
who is serving on an advisory board, commis-
sion, or group established by a lender or group 
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223 
of lenders for providing such service, except 
that the eligible lender may reimburse such em-
ployee for reasonable expenses incurred in pro-
viding such service; 
‘‘(E) performed for an institution of higher 
education any function that the institution of 
higher education is required to carry out under 
part B, D, or G; 
‘‘(F) paid, on behalf of an institution of 
higher education, another person to perform 
any function that the institution of higher edu-
cation is required to perform under part B, D, 
or G; 
‘‘(G) provided payments or other benefits 
to a student at an institution of higher edu-
cation to act as the lender’s representative to 
secure applications under this title from indi-
vidual prospective borrowers, unless such stu-
dent— 
‘‘(i) is also employed by the lender for 
other purposes; and 
‘‘(ii) made all appropriate disclosures 
regarding such employment;’’. 
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224 
(i) STUDENT LOAN INFORMATION.—Section 435(m) 
(20 U.S.C. 1085(m)) is amended by adding at the end 
the following new paragraph: 
‘‘(5) STUDENT LOAN INFORMATION.— 
‘‘(A) Notwithstanding any other provision 
of law or regulation, a lender, secondary mar-
ket, holder, or guaranty agency shall provide, 
free of charge and in a timely and effective 
manner, any student loan information main-
tained by that entity that is requested by an in-
stitution of higher education and any third- 
party servicer (as defined in section 481(c)) 
working on behalf of that institution to prevent 
student loan defaults. 
‘‘(B) An institution and any third-party 
servicer obtaining access to information under 
subparagraph (A) shall safeguard that informa-
tion in order to prevent potential abuses of that 
information, including identity theft. 
‘‘(C) Any third party servicer that obtains 
information under this subparagraph shall only 
use the information in a manner directly related 
to the default prevention work the servicer is 
performing on behalf of the institution of higher 
education.’’. 
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225 
(j) DISABILITY DETERMINATIONS.—Section 437(a) 
(20 U.S.C. 1087(a)) is amended by adding at the end the 
following new sentence: ‘‘In making such determination of 
permanent and total disability, the Secretary shall provide 
that a borrower who has been certified as permanently and 
totally disabled by the Department of Veterans Affairs or 
the Social Security Administration shall not be required 
to present further documentation for purposes of this 
title.’’. 
(k) TREATMENT
OF FALSELY CERTIFIED BOR-
ROWERS.—Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is 
amended by inserting ‘‘or parent’s eligibility’’ after ‘‘such 
student’s eligibility’’. 
(l) ADDITIONAL TECHNICAL AMENDMENTS.— 
(1) 
Section 
428(a)(2)(A) 
(20 
U.S.C. 
1078(a)(2)(A)) is amended— 
(A) by striking ‘‘and’’ at the end of sub-
clause (II) of clause (i); and 
(B) by moving the margin of clause (iii) 
two ems to the left. 
(2) Section 428G(e) (20 U.S.C. 1078–7(e)) is 
amended by striking ‘‘, made to a student to cover 
the cost of attendance at an eligible institution out-
side the United States,’’. 
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226 
SEC. 424. ELIMINATION OF AUCTION. 
Part I of title IV (as added by section 701 of the 
College Cost Reduction and Access Act) is repealed. 
PART C—FEDERAL WORK-STUDY PROGRAMS 
SEC. 441. AUTHORIZATION OF APPROPRIATIONS. 
Section 441(b) (42 U.S.C. 2751(b)) is amended— 
(1) by striking ‘‘1999’’ and inserting ‘‘2008’’; 
and 
(2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 
succeeding’’. 
SEC. 442. COMMUNITY SERVICE. 
Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended 
by striking ‘‘that are open and accessible to the commu-
nity’’. 
SEC. 443. ALLOCATION OF FUNDS. 
(a) ELIGIBILITY FOR ADDITIONAL ALLOCATIONS.— 
Section 442(a)(4) (42 U.S.C. 2752(a)(4)) is amended by 
striking subparagraph (B) and inserting the following: 
‘‘(B) An otherwise eligible institution may receive a 
portion of the allocation described in subparagraph (A) 
if— 
‘‘(i) not less than 10 percent of the students at-
tending the institution receive Federal Pell Grants; 
and 
‘‘(ii)(I) in the case of an institution that offers 
programs of at least 4 years in duration, if its grad-
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227 
uation rate for Federal Pell Grant recipients attend-
ing the institution and graduating within the period 
of time equal to normal duration of the longest un-
dergraduate program offered by the institution, as 
measured from the first day of their enrollment, ex-
ceeds the median rate for the class of institution (as 
defined in section 131(f)(7)(C)); or 
‘‘(II) in the case of an institution that offers 
programs of at least 2, but less than 4, years in du-
ration, if its rate for Federal Pell Grant recipients 
attending the institution and graduating or transfer-
ring to an institution that offers programs of at 
least 4 years in duration within the period of time 
equal to the normal duration of the program offered, 
as measured from the first day of their enrollment, 
exceeds the median rate for the class of institution 
(as defined in section 131(f)(7)(C)).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to any amounts ap-
propriated under section 441(b) of the Higher Education 
Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 2009 or 
any succeeding fiscal year. 
SEC. 444. BOOKS AND SUPPLIES. 
Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is 
amended by striking ‘‘$450’’ and inserting ‘‘$600’’. 
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228 
SEC. 445. JOB LOCATION AND DEVELOPMENT. 
Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amend-
ed— 
(1) by striking ‘‘10 percent or $50,000’’ and in-
serting ‘‘15 percent or $75,000’’; and 
(2) by inserting before the period at the end the 
following: ‘‘, except that not less than one-third of 
such amount shall be specifically allocated to locate 
and develop community service jobs’’. 
SEC. 446. WORK COLLEGES. 
Section 448 (42 U.S.C. 2756b) is amended— 
(1) by striking ‘‘work-learning’’ each place it 
appears and inserting ‘‘work-learning-service’’; 
(2) by amending subparagraph (C) of sub-
section (e)(1) to read as follows: 
‘‘(C) requires all resident students, includ-
ing at least one-half of all students who are en-
rolled on a full-time basis, to participate in a 
comprehensive work-learning-service program 
for at least 5 hours each week, or at least 80 
hours during each period of enrollment, unless 
the student is engaged in an institutionally or-
ganized or approved study abroad or externship 
program; and’’; 
(3) by amending paragraph (2) of subsection 
(e) to read as follows: 
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229 
‘‘(2) the term ‘comprehensive student work- 
learning-service program’— 
‘‘(A) means a student work-learning-serv-
ice program that is an integral and stated part 
of the institution’s educational philosophy and 
program; 
‘‘(B) requires participation of all resident 
students for enrollment and graduation; 
‘‘(C) includes learning objectives, evalua-
tion, and a record of work performance as part 
of the student’s college record; 
‘‘(D) provides programmatic leadership by 
college personnel at levels comparable to tradi-
tional academic programs; 
‘‘(E) recognizes the educational role of 
work-learning-service supervisors; and 
‘‘(F) 
includes 
consequences 
for 
non-
performance or failure in the work-learning- 
service program similar to the consequences for 
failure in the regular academic program.’’; and 
(4) in subsection (f), by striking ‘‘1999 and 
such sums as may be necessary for each of the 4 
succeeding fiscal years’’ and inserting ‘‘2008 and 
such sums as may be necessary for the 5 succeeding 
fiscal years’’. 
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230 
SEC. 447. WORK ASSISTANCE FOR STUDENTS IN COM-
PREHENSIVE POSTSECONDARY PROGRAMS 
FOR STUDENTS WITH MENTAL RETARDA-
TION. 
(a) AMENDMENT.—Part C of title IV (42 U.S.C. 
2751 et seq.) is further amended by adding at the end 
thereof the following new section: 
‘‘SEC. 449. WORK ASSISTANCE FOR STUDENTS IN COM-
PREHENSIVE POSTSECONDARY PROGRAMS 
FOR STUDENTS WITH MENTAL RETARDA-
TION. 
‘‘(a) PURPOSE.—It is the purpose of this section to 
enable an institution participating under this part that of-
fers a comprehensive postsecondary program for students 
with mental retardation to provide work assistance to such 
students enrolled in that program in order to assist these 
students with the costs of postsecondary education and 
improve their academic and personal skills, independence, 
and employability. 
‘‘(b) PROGRAM AUTHORITY.—(1) An institution of 
higher education participating under this part may, pursu-
ant to a plan developed in accordance with subsection (c) 
and approved by the Secretary, transfer funds allocated 
under section 442 for use under this section to award work 
assistance to students with mental retardation who are en-
rolled and maintaining satisfactory progress in a com-
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233 
‘‘(4) a requirement that the Federal share of 
the compensation of a student in the program shall 
not exceed 75 percent. 
‘‘(d) DEFINITIONS.—For the purpose of this section: 
‘‘(1) COMPREHENSIVE
POSTSECONDARY
PRO-
GRAM
FOR
STUDENTS
WITH
MENTAL
RETARDA-
TION.—The term ‘comprehensive postsecondary pro-
gram for students with mental retardation’ means a 
degree, certificate, or nondegree program offered by 
an institution of higher education that— 
‘‘(A) is designed for students with mental 
retardation who seek to continue academic, vo-
cational, and independent living instruction at 
the institution to prepare for gainful employ-
ment; 
‘‘(B) includes an advising and curriculum 
structure; and 
‘‘(C) includes enrollment by the student 
(through regular enrollment, auditing courses, 
participation in internships, or enrollment in 
noncredit, nondegree courses) in the equivalent 
of not less than half-time enrollment, as defined 
by the institution. 
‘‘(2) STUDENT WITH MENTAL RETARDATION.— 
The term ‘student with mental retardation’ means a 
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234 
student with significantly subaverage general intel-
lectual functioning, existing concurrently with defi-
cits in adaptive behavior and manifested during the 
developmental period, that adversely affects a stu-
dent’s educational performance. 
‘‘(3) SATISFACTORY
PROGRESS.—A student 
with mental retardation enrolled in a comprehensive 
postsecondary program for students with mental re-
tardation is maintaining satisfactory progress if— 
‘‘(A) the institution at which that student 
is enrolled reviews the progress of the student 
at the end of each academic year, or its equiva-
lent, as determined by the institution; and 
‘‘(B) the institution determines that the 
student is meeting or exceeding the program re-
quirements and adequately progressing toward 
program completion.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall be effective for academic year 2008– 
2009 and succeeding academic years. 
PART D—FEDERAL DIRECT LOAN PROGRAM 
SEC. 451. INCOME CONTINGENT REPAYMENT. 
Section 455(e)(2) (20 U.S.C. 1087e(e)(2)) is amend-
ed by striking ‘‘and files a Federal income tax return 
jointly with the borrower’s spouse’’. 
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235 
PART E—FEDERAL PERKINS LOAN PROGRAM 
SEC. 461. REAUTHORIZATION OF PROGRAM. 
(a) PROGRAM AUTHORIZATION.— 
(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
Section 461(b) (20 U.S.C. 1087aa(b)) is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘1999’’ and inserting 
‘‘2008’’; and 
(ii) by striking ‘‘4 succeeding’’ and in-
serting ‘‘5 succeeding’’; and 
(B) in paragraph (2), by striking ‘‘2003’’ 
each place it appears and inserting ‘‘2014’’. 
(2) FEDERAL CAPITAL CONTRIBUTION RECOV-
ERY.—Section 466 (20 U.S.C. 1087ff) is amended— 
(A) by striking ‘‘2004’’ each place it ap-
pears in subsections (a) and (c) and inserting 
‘‘2014’’; 
(B) by striking ‘‘2003’’ each place it ap-
pears in subsections (a) and (b), and inserting 
‘‘2013’’; and 
(C) by striking ‘‘2012’’ in subsection (b) 
and inserting ‘‘2014’’. 
(b) BOOKS
AND SUPPLIES.—Section 462(c)(4)(D) 
(20 U.S.C. 1087bb(c)(4)(D)) is amended by striking 
‘‘$450’’ and inserting ‘‘$600’’. 
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236 
SEC. 462. LOAN TERMS AND CONDITIONS. 
(a) LOAN
LIMITS.—Section 464(a) (20 U.S.C. 
1087dd(a)) is amended— 
(1) in paragraph (2)(A)— 
(A) by striking ‘‘$4,000’’ in clause (i) and 
inserting ‘‘$5,500’’; and 
(B) by striking ‘‘$6,000’’ in clause (ii) and 
inserting ‘‘$8,000’’; and 
(2) in paragraph (2)(B)— 
(A) by striking ‘‘$40,000’’ in clause (i) and 
inserting ‘‘$60,000’’; 
(B) by striking ‘‘$20,000’’ in clause (ii) 
and inserting ‘‘$27,500’’; and 
(C) by striking ‘‘$8,000’’ in clause (iii) and 
inserting ‘‘$11,000’’. 
(b) FORBEARANCE.—Section 464(e) (20 U.S.C. 
1087dd(e)) is amended by striking ‘‘, upon written re-
quest,’’. 
(c) SPECIAL REPAYMENT RULE.—Paragraph (2) of 
section 464(f) is amended to read as follows: 
‘‘(2) No compromise repayment of a defaulted loan 
as authorized by paragraph (1) may be made unless 
agreed to by the Secretary.’’. 
(d) REHABILITATION.—Section 464(h)(1)(A) (20 
U.S.C. 1087dd(h)(1)(A)) is amended by striking ‘‘12 
ontime’’ and inserting ‘‘9 on-time’’. 
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237 
SEC. 463. LOAN CANCELLATION. 
Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is 
amended— 
(1) by inserting ‘‘(D),’’ after ‘‘subparagraph 
(A), (C),’’ in clause (i); 
(2) by inserting ‘‘or’’ after the semicolon at the 
end of clause (ii); 
(3) by striking clause (iii); and 
(4) by redesignating clause (iv) as clause (iii). 
SEC. 464. TECHNICAL AMENDMENTS. 
Part E is further amended as follows: 
(1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 
1087bb(g)(1)(E)(i)(I)) is amended by inserting 
‘‘monthly’’ after ‘‘consecutive’’. 
(2) 
Section 
464(c)(1)(D) 
(20 
U.S.C. 
1087dd(c)(1)(D)) is amended by redesignating sub-
clauses (I) and (II) as clauses (i) and (ii), respec-
tively. 
(3) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) 
is amended in subparagraph (A), by striking ‘‘sec-
tion 111(c)’’ and inserting ‘‘section 1113(a)(5)’’. 
(4) Section 467(b) (20 U.S.C. 1087gg(b)) is 
amended by striking ‘‘(5)(A), (5)(B)(i), or (6)’’ and 
inserting ‘‘(4)(A), (4)(B), or (5)’’. 
(5) Section 469(c) (20 U.S.C. 1087ii(c)) is 
amended— 
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238 
(A) by striking ‘‘sections 602 and 632’’ 
and inserting ‘‘sections 602(3) and 632(5)’’; 
(B) by striking ‘‘qualified professional pro-
vider of early intervention services’’ and insert-
ing ‘‘early intervention services’’; and 
(C) by striking ‘‘section 672(2)’’ and in-
serting ‘‘section 632(4)’’. 
PART F—NEED ANALYSIS 
SEC. 471. SIGNIFICANTLY SIMPLIFYING THE STUDENT AID 
APPLICATION PROCESS. 
(a) IMPROVEMENTS
TO PAPER
AND ELECTRONIC 
FORMS.— 
(1) COMMON FINANCIAL AID FORM DEVELOP-
MENT AND PROCESSING.—Section 483(a) (20 U.S.C. 
1090(a)) is amended— 
(A) by striking paragraphs (1), (2), and 
(5); 
(B) by redesignating paragraphs (3), (4), 
(6), and (7), as paragraphs (9), (10), (11), and 
(12), respectively; 
(C) by inserting before paragraph (9), as 
redesignated by subparagraph (B), the fol-
lowing: 
‘‘(1) IN GENERAL.—The Secretary, in coopera-
tion with representatives of agencies and organiza-
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239 
tions involved in student financial assistance, shall 
produce, distribute, and process free of charge com-
mon financial reporting forms as described in this 
subsection to be used for application and reapplica-
tion to determine the need and eligibility of a stu-
dent for financial assistance under parts A through 
E (other than subpart 4 of part A). These forms 
shall be made available to applicants in both paper 
and electronic formats and shall be referred to as 
the ‘Free Application for Federal Student Aid’ or 
the ‘FAFSA’. 
‘‘(2) EARLY ESTIMATES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
permit applicants to complete such forms as de-
scribed in this subsection in the 4 years prior 
to enrollment in order to obtain a non-binding 
estimate of the family contribution, as defined 
in section 473. The estimate shall clearly and 
conspicuously indicate that it is only an esti-
mate of family contribution, and may not re-
flect the actual family contribution of the appli-
cant that shall be used to determine the grant, 
loan, or work assistance that the applicant may 
receive under this title when enrolled in a pro-
gram of postsecondary education. Such appli-
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240 
cants shall be permitted to update information 
submitted on forms described in this subsection 
using the process required under paragraph 
(5)(A). 
‘‘(B) EVALUATION.—Two years after the 
early estimates are implemented under this 
paragraph and from data gathered from the 
early estimates, the Secretary shall evaluate the 
differences between initial, non-binding early es-
timates and the final financial aid award made 
available under this title. 
‘‘(C) REPORT.—The Secretary shall pro-
vide a report to the authorizing committees on 
the results of the evaluation. 
‘‘(3) PAPER FORMAT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
produce, distribute, and process common forms 
in paper format to meet the requirements of 
paragraph (1). The Secretary shall develop a 
common paper form for applicants who do not 
meet the requirements of subparagraph (B). 
‘‘(B) EZ FAFSA.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall develop and use a simplified paper 
application form, to be known as the ‘EZ 
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241 
FAFSA’, to be used for applicants meeting 
the requirements of section 479(c). 
‘‘(ii) 
REDUCED
DATA
REQUIRE-
MENTS.—The form under this subpara-
graph shall permit an applicant to submit, 
for financial assistance purposes, only the 
data elements required to make a deter-
mination of whether the applicant meets 
the requirements under section 479(c). 
‘‘(iii) STATE
DATA.—The Secretary 
shall include on the form under this sub-
paragraph such data items as may be nec-
essary to award State financial assistance, 
as provided under paragraph (6), except 
that the Secretary shall not include a 
State’s data if that State does not permit 
its applicants for State assistance to use 
the form under this subparagraph. 
‘‘(iv) FREE AVAILABILITY AND PROC-
ESSING.—The provisions of paragraph (7) 
shall apply to the form under this subpara-
graph, and the data collected by means of 
the form under this subparagraph shall be 
available to institutions of higher edu-
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242 
cation, guaranty agencies, and States in 
accordance with paragraph (9). 
‘‘(v) TESTING.—The Secretary shall 
conduct appropriate field testing on the 
form under this subparagraph. 
‘‘(C) PROMOTING
THE
USE
OF
ELEC-
TRONIC FAFSA.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall— 
‘‘(I) develop a form that uses 
skip logic to simplify the application 
process for applicants; and 
‘‘(II) make all efforts to encour-
age applicants to utilize the electronic 
forms described in paragraph (4). 
‘‘(ii) MAINTENANCE OF THE FAFSA IN 
A
PRINTABLE
ELECTRONIC
FILE.—The 
Secretary shall maintain a version of the 
paper forms described in subparagraphs 
(A) and (B) in a printable electronic file 
that is easily portable. The printable elec-
tronic file will be made easily accessible 
and downloadable to students on the same 
website used to provide students with the 
electronic application forms described in 
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243 
paragraph (4) of this subsection. The Sec-
retary shall enable students to submit a 
form created under this subparagraph that 
is downloaded and printed from an elec-
tronic file format in order to meet the fil-
ing requirements of this section and in 
order to receive aid from programs under 
this title. 
‘‘(iii) REPORTING
REQUIREMENT.— 
The Secretary shall report annually to 
Congress on the impact of the digital di-
vide on students completing applications 
for title IV aid described under this para-
graph and paragraph (4). The Secretary 
will also report on the steps taken to elimi-
nate the digital divide and phase out the 
paper form described in subparagraph (A) 
of this paragraph. The Secretary’s report 
will specifically address the impact of the 
digital divide on the following student pop-
ulations: dependent students, independent 
students without dependents, and inde-
pendent students with dependents other 
than a spouse. 
‘‘(4) ELECTRONIC FORMAT.— 
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244 
‘‘(A) IN
GENERAL.—The Secretary shall 
produce, distribute, and process common forms 
in electronic format to meet the requirements of 
paragraph (1). The Secretary shall develop 
common electronic forms for applicants who do 
not meet the requirements of subparagraph (C) 
of this paragraph. 
‘‘(B) STATE
DATA.—The Secretary shall 
include on the common electronic forms space 
for information that needs to be submitted from 
the applicant to be eligible for State financial 
assistance, as provided under paragraph (6), ex-
cept the Secretary shall not require applicants 
to complete data required by any State other 
than the applicant’s State of residence. 
‘‘(C) SIMPLIFIED APPLICATIONS: FAFSA ON 
THE WEB.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall develop and use a simplified elec-
tronic application form to be used by appli-
cants meeting the requirements under sub-
section (c) of section 479 and an addi-
tional, separate simplified electronic appli-
cation form to be used by applicants meet-
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245 
ing the requirements under subsection (b) 
of section 479. 
‘‘(ii) 
REDUCED
DATA
REQUIRE-
MENTS.—The simplified electronic applica-
tion forms shall permit an applicant to 
submit for financial assistance purposes, 
only the data elements required to make a 
determination of whether the applicant 
meets the requirements under subsection 
(b) or (c) of section 479. 
‘‘(iii) STATE
DATA.—The Secretary 
shall include on the simplified electronic 
application forms such data items as may 
be necessary to award state financial as-
sistance, as provided under paragraph (6), 
except that the Secretary shall not require 
applicants to complete data required by 
any State other than the applicant’s State 
of residence. 
‘‘(iv) 
AVAILABILITY
AND
PROC-
ESSING.—The data collected by means of 
the simplified electronic application forms 
shall be available to institutions of higher 
education, guaranty agencies, and States 
in accordance with paragraph (9). 
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246 
‘‘(v) TESTING.—The Secretary shall 
conduct appropriate field testing on the 
forms developed under this subparagraph. 
‘‘(D) USE
OF
FORMS.—Nothing in this 
subsection shall be construed to prohibit the use 
of the forms developed by the Secretary pursu-
ant to this paragraph by an eligible institution, 
eligible lender, guaranty agency, State grant 
agency, private computer software provider, a 
consortium thereof, or such other entities as the 
Secretary may designate. 
‘‘(E) PRIVACY.—The Secretary shall en-
sure that data collection under this paragraph 
complies with section 552a of title 5, United 
States Code, and that any entity using the elec-
tronic version of the forms developed by the 
Secretary pursuant to this paragraph shall 
maintain reasonable and appropriate adminis-
trative, technical, and physical safeguards to 
ensure the integrity and confidentiality of the 
information, and to protect against security 
threats, or unauthorized uses or disclosures of 
the information provided on the electronic 
version of the forms. Data collected by such 
electronic version of the forms shall be used 
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247 
only for the application, award, and administra-
tion of aid awarded under this title, State aid, 
or aid awarded by eligible institutions or such 
entities as the Secretary may designate. No 
data collected by such electronic version of the 
forms shall be used for making final aid awards 
under this title until such data have been proc-
essed by the Secretary or a contractor or des-
ignee of the Secretary, and an expected family 
contribution has been calculated by the Sec-
retary, except as may be permitted under this 
title. 
‘‘(F) SIGNATURE.—Notwithstanding any 
other provision of this Act, the Secretary may 
permit an electronic form under this paragraph 
to be submitted with an electronic signature. 
‘‘(5) STREAMLINING.— 
‘‘(A) STREAMLINED REAPPLICATION PROC-
ESS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall develop streamlined reapplication 
forms and processes, including both paper 
and electronic reapplication processes, con-
sistent with the requirements of this sub-
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248 
section, for an applicant who applies for fi-
nancial assistance under this title— 
‘‘(I) in the academic year suc-
ceeding the year in which such appli-
cant first applied for financial assist-
ance under this title; or 
‘‘(II) in any succeeding academic 
years. 
‘‘(ii) MECHANISMS
FOR
REAPPLICA-
TION.—The Secretary shall develop appro-
priate mechanisms to support reapplica-
tion. 
‘‘(iii) IDENTIFICATION
OF
UPDATED 
DATA.—The Secretary shall determine, in 
cooperation with States, institutions of 
higher education, agencies, and organiza-
tions involved in student financial assist-
ance, the data elements that can be up-
dated from the previous academic year’s 
application. 
‘‘(iv) REDUCED DATA AUTHORIZED.— 
Nothing in this title shall be construed as 
limiting the authority of the Secretary to 
reduce the number of data elements re-
quired of reapplicants. 
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249 
‘‘(v) ZERO FAMILY CONTRIBUTION.— 
Applicants determined to have a zero fam-
ily contribution pursuant to section 479(c) 
shall not be required to provide any finan-
cial data in a reapplication form, except 
that which is necessary to determine eligi-
bility under such section. 
‘‘(B) REDUCTION OF DATA ELEMENTS.— 
‘‘(i) REDUCTION
ENCOURAGED.—Of 
the number of data elements on the 
FAFSA on the date of enactment of the 
College Access and Opportunity Act of 
2007 (including questions on the FAFSA 
for the purposes described in paragraph 
(6)), the Secretary, in cooperation with 
representatives of agencies and organiza-
tions involved in student financial assist-
ance, shall continue to reduce the number 
of such data elements following the date of 
enactment. Reductions of data elements 
under 
paragraph 
(3)(B), 
(4)(C), 
or 
(5)(A)(iv) shall not be counted towards the 
reduction referred to in this paragraph un-
less those data elements are reduced for all 
applicants. 
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250 
‘‘(ii) REPORT.—The Secretary shall 
annually report to the House of Represent-
atives and the Senate on the progress 
made of reducing data elements. 
‘‘(6) STATE REQUIREMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
include on the forms developed under this sub-
section, such State-specific data items as the 
Secretary determines are necessary to meet 
State requirements for State need-based finan-
cial aid under section 415C, except as provided 
in paragraphs (3)(B)(iii) and (4)(C)(iii) of this 
subsection. Such items shall be selected in con-
sultation with State agencies in order to assist 
in the awarding of State financial assistance in 
accordance with the terms of this subsection, 
except as provided in paragraphs (3)(B)(iii) and 
(4)(C)(iii) of this subsection. The number of 
such data items shall not be less than the num-
ber included on the form on October 7, 1998, 
unless a State notifies the Secretary that the 
State no longer requires those data items for 
the distribution of State need-based financial 
aid. 
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251 
‘‘(B) ANNUAL
REVIEW.—The Secretary 
shall conduct an annual review process to deter-
mine which forms and data items the States re-
quire to award State need-based financial aid 
and other application requirements that the 
States may impose. 
‘‘(C) STATE USE OF SIMPLIFIED FORMS.— 
The Secretary shall encourage States to take 
such steps as necessary to encourage the use of 
simplified application forms, including those de-
scribed in paragraphs (3)(B) and (4)(C), to 
meet the requirements under subsection (b) or 
(c) of section 479. 
‘‘(D) FEDERAL
REGISTER
NOTICE.—The 
Secretary shall publish on an annual basis a no-
tice in the Federal Register requiring State 
agencies to inform the Secretary— 
‘‘(i) if the State agency is unable to 
permit applicants to utilize the simplified 
application forms described in paragraphs 
(3)(B) and (4)(C); and 
‘‘(ii) of the State-specific data that 
the State agency requires for delivery of 
State need-based financial aid. 
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252 
‘‘(E) STATE NOTIFICATION TO THE SEC-
RETARY.— 
‘‘(i) IN GENERAL.—Each State agency 
shall notify the Secretary— 
‘‘(I) whether the State permits 
an applicant to file a form described 
in paragraph (3)(B) or paragraph 
(4)(C) of this subsection for purposes 
of determining eligibility for State 
need-based financial aid; and 
‘‘(II) the State-specific data that 
the State agency requires for delivery 
of State need-based financial aid. 
‘‘(ii) ACCEPTANCE OF FORMS.—In the 
event that a State does not permit an ap-
plicant to file a form described in para-
graph (3)(B) or paragraph (4)(C) of this 
subsection for purposes of determining eli-
gibility for State need-based financial 
aid— 
‘‘(I) the State shall notify the 
Secretary if the State is not permitted 
to do so because of either State law or 
because of agency policy; and 
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255 
‘‘(i) the FAFSA is a free Federal stu-
dent aid application; 
‘‘(ii) the FAFSA can be completed 
without professional assistance; and 
‘‘(iii) includes the current Internet ad-
dress for the FAFSA on the Department’s 
web site. 
‘‘(8) APPLICATION
PROCESSING
CYCLE.—The 
Secretary shall enable students to submit a form 
created under this subsection in order to meet the 
filing requirements of this section and in order to re-
ceive aid from programs under this title and shall 
initiate the processing of applications under this 
subsection as early as practicable prior to January 
1 of the student’s planned year of enrollment.’’. 
(2) MASTER CALENDAR.—Section 482(a)(1)(B) 
(20 U.S.C. 1089) is amended to read as follows: 
‘‘(B) by March 1: proposed modifications, 
updates, and notices pursuant to sections 478, 
479(c)(2)(C), and 483(a)(6) published in the 
Federal Register;’’. 
(b) INCREASING ACCESS TO TECHNOLOGY.—Section 
483 (20 U.S.C. 1090) is further amended by adding at 
the end the following: 
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256 
‘‘(f) ADDRESSING THE DIGITAL DIVIDE.—The Sec-
retary shall utilize savings accrued by moving more appli-
cants to the electronic forms described in subsection (a)(4) 
to improve access to the electronic forms described in sub-
section (a)(4) for applicants meeting the requirements of 
section 479(c).’’. 
SEC. 472. DISCRETION OF STUDENT FINANCIAL AID ADMIN-
ISTRATORS. 
Section 479A(a) (20 U.S.C. 1087tt(a)) is amended— 
(1) by striking ‘‘(a) IN GENERAL.—’’ and in-
serting the following: 
‘‘(a) AUTHORITY TO MAKE ADJUSTMENTS.— 
‘‘(1) 
ADJUSTMENTS
FOR
SPECIAL
CIR-
CUMSTANCES.—’’; 
(2) by inserting before ‘‘Special circumstances 
may’’ the following: 
‘‘(2) SPECIAL CIRCUMSTANCES DEFINED.—’’; 
(3) by inserting ‘‘a student’s status as a ward 
of the court at any time prior to attaining 18 years 
of age, a student’s status as an individual who was 
adopted at or after age 13, a student’s status as a 
homeless or unaccompanied youth (as defined in sec-
tion 725 of the McKinney-Vento Homeless Assist-
ance Act),’’ after ‘‘487,’’; 
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257 
(4) by inserting before ‘‘Adequate documenta-
tion’’ the following: 
‘‘(3) DOCUMENTATION AND USE OF SUPPLE-
MENTARY INFORMATION.—’’; and 
(5) by inserting before ‘‘No student’’ the fol-
lowing: 
‘‘(4) FEES FOR SUPPLEMENTARY INFORMATION 
PROHIBITED.—’’. 
PART G—GENERAL PROVISIONS RELATING TO 
STUDENT FINANCIAL ASSISTANCE 
SEC. 481. EXPANDING INFORMATION DISSEMINATION RE-
GARDING ELIGIBILITY FOR PELL GRANTS. 
Section 483(a) (20 U.S.C. 1090(a)) (as amended by 
section 471(a)) is further amended by adding at the end 
the following new paragraph: 
‘‘(13) EXPANDING
INFORMATION
DISSEMINA-
TION REGARDING ELIGIBILITY FOR PELL GRANTS.— 
The Secretary shall make special efforts, in conjunc-
tion with State efforts, to notify students and their 
parents who qualify for a free lunch under the Rich-
ard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.), the Food Stamps program, or 
such other programs as the Secretary shall deter-
mine, of their potential eligibility for a maximum 
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258 
Pell Grant, and shall disseminate such informational 
materials as the Secretary deems appropriate.’’. 
SEC. 482. STUDENT ELIGIBILITY. 
(a) TECHNICAL AMENDMENT.—Section 484(b)(5) 
(20 U.S.C. 1091(b)(5)) is amended by inserting ‘‘or par-
ent (on behalf of a student)’’ after ‘‘student’’. 
(b) REPUBLIC OF PALAU.—Section 484 (20 U.S.C. 
1091) is amended— 
(1) in subsection (a)— 
(A) in paragraph (4), by striking ‘‘the Re-
public of the Marshall Islands, the Federated 
States of Micronesia, or’’; and 
(B) in paragraph (5), by striking ‘‘a cit-
izen of any one of the Freely Associated 
States’’ and inserting ‘‘or, to the extent de-
scribed in subsection (j), a citizen of the Repub-
lic of Palau’’; and 
(2) by amending subsection (j) to read as fol-
lows: 
‘‘(j) ASSISTANCE UNDER SUBPART 1 OF PART A FOR 
STUDENTS FROM PALAU.—Notwithstanding any other 
provision of law, a student shall be eligible until Sep-
tember 30, 2008, for assistance under subpart 1 of part 
A if the student is otherwise qualified and— 
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259 
‘‘(1) is a citizen of the Republic of Palau and 
attends an institution of higher education in a State 
or a public or nonprofit private institution of higher 
education in the Freely Associated States; or 
‘‘(2) meets the requirements of subsection 
(a)(5) and attends a public or nonprofit private in-
stitution of higher education in any one of the Free-
ly Associated States.’’. 
SEC. 483. INSTITUTIONAL REFUNDS. 
Section 484B(a)(1) (20 U.S.C. 1091b(a)(1)) is 
amended in subsection (a)(1), by inserting ‘‘subpart 4 of 
part A or’’ after ‘‘received under’’. 
SEC. 484. INSTITUTIONAL AND FINANCIAL ASSISTANCE IN-
FORMATION FOR STUDENTS. 
(a) INFORMATION
DISSEMINATION
ACTIVITIES.— 
Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended— 
(1) by amending the second sentence to read as 
follows: ‘‘The information required by this section 
shall be produced and be made publicly available to 
an enrolled student and to any prospective student, 
through appropriate publications, mailings, elec-
tronic media, and the reports required by the insti-
tution’s 
accrediting 
agency 
under 
section 
496(c)(9).’’; 
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260 
(2) by amending subparagraph (G) to read as 
follows: 
‘‘(G) the academic programs of the institution, 
including— 
‘‘(i) the current degree programs and other 
educational and training programs; 
‘‘(ii) the institution’s educational mission 
and goals; 
‘‘(iii) the instructional, laboratory, and 
other physical plant facilities which relate to the 
academic programs; and 
‘‘(iv) the faculty and other instructional 
personnel;’’; 
(3) by striking subparagraph (L) and inserting 
the following: 
‘‘(L) a summary of student outcomes for full- 
time undergraduate students, including— 
‘‘(i) the completion or graduation rates of 
certificate- or degree-seeking undergraduate 
students entering such institutions; and 
‘‘(ii) any other student outcome data, qual-
itative or quantitative, including data regarding 
distance education, deemed by the institution to 
be appropriate to its stated educational mission 
and goals, and, when applicable, licensing and 
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262 
sending institution, provided that the sending insti-
tution is accredited by an agency or association that 
is recognized by the Secretary pursuant to section 
496 to be a reliable authority as to the quality of the 
education or training offered, and except that noth-
ing in this subparagraph shall be construed to— 
‘‘(i) authorize an officer or employee of the 
Department to exercise any direction, super-
vision, or control over the curriculum, program 
of instruction, administration, or personnel of 
any institution of higher education, or over any 
accrediting agency or association; 
‘‘(ii) limit the application of the General 
Education Provisions Act; or 
‘‘(iii) create any legally enforceable right; 
and 
‘‘(R) policies and sanctions related to copyright 
infringement, including— 
‘‘(i) information which explicitly informs 
students that unauthorized distribution of copy-
righted material on the institution’s information 
technology systems, including engaging in un-
authorized peer-to-peer file-sharing, may sub-
ject them to civil and criminal penalties; 
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263 
‘‘(ii) a summary of the penalties for viola-
tion of copyright law under the United States 
Code; 
‘‘(iii) a description of the disciplinary ac-
tions which are taken against students who en-
gage in unauthorized distribution of copyrighted 
material on the institution’s information tech-
nology systems; and 
‘‘(iv) notification that the institution may 
use technological measures to detect, prevent, 
and prohibit unauthorized distribution of copy-
righted material on its information technology 
systems, including over local area networks of 
such systems.’’. 
(b) ADDITIONAL AMENDMENTS.—Section 485(a) is 
further amended by striking paragraph (6) and inserting 
the following: 
‘‘(6) Each institution may provide supplemental in-
formation to enrolled and prospective students showing 
the completion or graduation rate for students described 
in paragraph (4). For the purpose of this paragraph, the 
definitions provided in the Integrated Postsecondary Edu-
cation Data System shall apply. 
‘‘(7) Each eligible institution participating in any 
program under this title may publicly report to currently 
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264 
enrolled and prospective students the voluntary informa-
tion collected by the National Survey of Student Engage-
ment (NSSE), the Community College Survey of Student 
Engagement (CCSSE), or other instruments that provide 
evidence of student participation in educationally purpose-
ful activities. The information shall be produced and made 
available in a uniform and comprehensible manner, 
through appropriate publications, mailings, and electronic 
media, and may be included in reports required by the 
institution’s accrediting agency.’’. 
(c) EXIT COUNSELING.—Section 485(b) (20 U.S.C. 
1092(b)) is amended by adding at the end the following 
new paragraph: 
‘‘(3) Each eligible institution shall, during the exit 
interview required by this subsection, provide to a bor-
rower of a loan made under part B, D, or E a clear and 
conspicuous notice describing the effect of using a consoli-
dation loan to discharge the borrower’s student loans, in-
cluding— 
‘‘(A) the effects of consolidation on total inter-
est to be paid, fees to be paid, and length of repay-
ment; 
‘‘(B) the effects of consolidation on a bor-
rower’s underlying loan benefits, including loan for-
giveness, cancellation, and deferment; 
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265 
‘‘(C) the ability for the borrower to prepay the 
loan, pay on a shorter schedule, and to change re-
payment plans, and that borrower benefit programs 
may vary among different loan holders; 
‘‘(D) the tax benefits for which the borrower 
may be eligible; and 
‘‘(E) the consequences of default.’’. 
(d) 
CAMPUS
CRIME
INFORMATION.—Section 
485(f)(1) (20 U.S.C. 1092(f)(1)) is amended by inserting 
‘‘, other than a foreign institution of higher education,’’ 
after ‘‘under this title’’. 
(e) DISCLOSURE
OF FIRE SAFETY
OF CAMPUS 
BUILDINGS.—Section 485 (20 U.S.C. 1092) is further 
amended— 
(1) in subsection (a)(1), by adding after sub-
paragraph (Q) (as added by subsection (a)(8) of this 
section) the following new subparagraph: 
‘‘(R) the fire safety report prepared by the in-
stitution pursuant to subsection (h).’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) DISCLOSURE OF FIRE SAFETY STANDARDS AND 
MEASURES.— 
‘‘(1) ANNUAL
FIRE
SAFETY
REPORTS
RE-
QUIRED.—Each institution participating in any pro-
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266 
gram under this title shall, beginning in the first 
academic year that begins after the date of enact-
ment of the College Access and Opportunity Act of 
2007, and each year thereafter, prepare, publish, 
and distribute, through appropriate publications (in-
cluding the Internet) or mailings, to all current stu-
dents and employees, and to any applicant for en-
rollment or employment upon request, an annual fire 
safety report. Such reports shall contain at least the 
following information with respect to the campus fire 
safety practices and standards of that institution: 
‘‘(A) A statement that identifies each insti-
tution-owned or controlled student housing fa-
cility, and whether or not such facility is 
equipped with a fire sprinkler system or other 
fire safety system, or has fire escape planning 
or protocols. 
‘‘(B) Statistics for each such facility con-
cerning the occurrence of fires and false alarms 
in such facility during the 2 preceding calendar 
years for which data are available. 
‘‘(C) For each such occurrence in each 
such facility, a summary of the human injuries 
or deaths, structural or property damage, or 
combination thereof. 
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267 
‘‘(D) Information regarding rules on port-
able electrical appliances, smoking and open 
flames (such as candles), regular mandatory su-
pervised fire drills, and planned and future im-
provements in fire safety. 
‘‘(E) Information about fire safety edu-
cation and training provided to students, fac-
ulty, and staff. 
‘‘(F) Information concerning fire safety at 
any housing facility owned or controlled by a 
fraternity, sorority, or student group that is 
recognized by the institution, including— 
‘‘(i) information reported to the insti-
tution under paragraph (4); and 
‘‘(ii) a statement concerning whether 
and how the institution works with recog-
nized student fraternities and sororities, 
and other recognized student groups own-
ing or controlling housing facilities, to 
make each building and property owned or 
controlled by such fraternities, sororities, 
and groups more fire safe. 
‘‘(2) FRATERNITIES, SORORITIES, AND OTHER 
GROUPS.—Each institution participating in a pro-
gram under this title shall request each fraternity 
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268 
and sorority that is recognized by the institution, 
and any other student group that is recognized by 
the institution and that owns or controls housing fa-
cilities, to collect and report to the institution the in-
formation described in subparagraphs (A) through 
(E) of paragraph (1), as applied to the fraternity, 
sorority, or recognized student group, respectively, 
for each building and property owned or controlled 
by the fraternity, sorority, or group, respectively. 
‘‘(3) CURRENT INFORMATION TO CAMPUS COM-
MUNITY.—Each institution participating in any pro-
gram under this title shall establish and maintain a 
log, written in a form that can be easily understood, 
recording all on-campus fires, including the nature, 
date, time, and general location of each fire and all 
false fire alarms. All entries that are required pursu-
ant to this paragraph shall, except where disclosure 
of such information is prohibited by law, be open to 
public inspection, and each such institution shall 
make annual reports to the campus community on 
such fires and false fire alarms in a manner that will 
aid the prevention of similar occurrences. 
‘‘(4) REPORTS TO THE SECRETARY.—On an an-
nual basis, each institution participating in any pro-
gram under this title shall submit to the Secretary 
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269 
a copy of the statistics required to be made available 
under paragraph (1)(B). The Secretary shall— 
‘‘(A) review such statistics; 
‘‘(B) make copies of the statistics sub-
mitted to the Secretary available to the public; 
and 
‘‘(C) in coordination with nationally recog-
nized fire organizations and representatives of 
institutions of higher education, identify exem-
plary fire safety policies, procedures, and prac-
tices and disseminate information concerning 
those policies, procedures, and practices that 
have proven effective in the reduction of cam-
pus fires. 
‘‘(5) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to authorize the 
Secretary to require particular policies, procedures, 
or practices by institutions of higher education with 
respect to fire safety. 
‘‘(6) DEFINITIONS.—In this subsection, the 
term ‘campus’ has the meaning provided in sub-
section (f)(6).’’. 
(f) CAMPUS BASED DIGITAL THEFT PREVENTION.— 
Section 485 (20 U.S.C. 1092) is further amended by add-
ing at the end the following new subsection: 
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270 
‘‘(i) CAMPUS
BASED
DIGITAL
THEFT
PREVEN-
TION.— 
‘‘(1) IN
GENERAL.—Each eligible institution 
participating in any program under this title which 
is among those identified during the prior calendar 
year by the Secretary pursuant to paragraph (2)(B), 
shall— 
‘‘(A) provide evidence to the Secretary that 
the institution has notified students on its poli-
cies and procedures related to the illegal 
downloading and distribution of copyrighted 
materials by students as required under sub-
section (a)(1)(R); 
‘‘(B) undertake a review, which shall be 
submitted to the Secretary, of its procedures 
and 
plans 
related 
to 
preventing 
illegal 
downloading and distribution to determine the 
program’s effectiveness and implement changes 
to the program if the changes are needed; and 
‘‘(C) provide evidence to the Secretary that 
the institution has developed a plan for imple-
menting a technology-based deterrent to pre-
vent the illegal downloading or peer-to-peer dis-
tribution of intellectual property. 
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271 
‘‘(2) IDENTIFICATION.—For purposes of car-
rying out the requirements of paragraph (1), the 
Secretary shall, on an annual basis, identify— 
‘‘(A) the 25 institutions of higher edu-
cation participating in programs under this 
title, which have received during the previous 
calendar year the highest number of writen no-
tices from copyright owners, or persons author-
ized to act on behalf of copyright owners, alleg-
ing infringement of copyright by users of the 
institution’s information technology systems, 
where such notices identify with specificity the 
works alleged to be infringed, or a representa-
tive list of works alleged to be infringed, the 
date and time of the alleged infringing conduct 
together with information sufficient to identify 
the infringing user, and information sufficient 
to contact the copyright owner or its authorized 
representative; and 
‘‘(B) from among those 25 institutions de-
scribed in paragraph (1), those which have re-
ceived during the previous calendar year at 
least 100 notices alleging infringement of copy-
right by users of the institution’s information 
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272 
technology systems, as described in paragraph 
(1).’’. 
SEC. 485. DISTANCE EDUCATION DEMONSTRATION PRO-
GRAM. 
(a) ELIGIBLE APPLICANTS.—Section 486(b)(3) (20 
U.S.C. 1093(b)(3)) is amended— 
(1) in subparagraph (B), by striking ‘‘section 
102(a)(1)(C)’’ and inserting ‘‘section 102’’; and 
(2) in subparagraph (C), by striking ‘‘sub-
section (a) of section 102, other than the require-
ment of paragraph (3)(A) or (3)(B) of such sub-
section,’’ and inserting ‘‘section 101, other than the 
requirements of subparagraph (A) or (B) of sub-
section (b)(4) of such section’’. 
(b) SELECTION.—Section 486(d)(1) (20 U.S.C. 
1093(d)(1)) is amended— 
(1) by striking ‘‘the third year’’ and inserting 
‘‘subsequent years’’; 
(2) by striking ‘‘35 institutions’’ and inserting 
‘‘100 institutions’’; and 
(3) by adding at the end the following new sen-
tence: ‘‘Not more than 5 of such institutions, sys-
tems, or consortia may be accredited, degree-grant-
ing correspondence schools.’’. 
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273 
SEC. 486. COLLEGE AFFORDABILITY DEMONSTRATION PRO-
GRAM. 
Part G of title IV is amended by inserting after sec-
tion 486 (20 U.S.C. 1093) the following new section: 
‘‘SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION 
PROGRAM. 
‘‘(a) PURPOSE.—It is the purpose of this section— 
‘‘(1) to provide, through a college affordability 
demonstration program, for increased innovation in 
the delivery of higher education and student finan-
cial aid in a manner resulting in reduced costs for 
students as well as the institution by employing one 
or more strategies including accelerating degree or 
program completion, increasing availability of, and 
access to, distance components of education delivery, 
engaging in collaborative arrangements with other 
institutions and organizations, and other alternative 
methodologies; and 
‘‘(2) to help determine— 
‘‘(A) the most effective means of delivering 
student financial aid as well as quality edu-
cation; 
‘‘(B) the specific statutory and regulatory 
requirements that should be altered to provide 
for more efficient and effective delivery of stu-
dent financial aid, as well as access to high 
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274 
quality distance education programs, resulting 
in a student more efficiently completing post-
secondary education; and 
‘‘(C) the most effective methods of obtain-
ing and managing institutional resources. 
‘‘(b) DEMONSTRATION PROGRAM AUTHORIZED.— 
‘‘(1) IN
GENERAL.—In accordance with the 
purposes described in subsection (a) and the provi-
sions of subsection (d), the Secretary is authorized 
to select not more than 100 institutions of higher 
education, including those applying as part of sys-
tems or consortia of such institutions, for voluntary 
participation in the College Affordability Demonstra-
tion Program in order to enable participating insti-
tutions to carry out such purposes by providing pro-
grams of postsecondary education, and making avail-
able student financial assistance under this title to 
students enrolled in those programs, in a manner 
that would not otherwise meet the requirements of 
this title. 
‘‘(2) WAIVERS.—The Secretary is authorized to 
waive for any institutions of higher education, or 
any system or consortia of institutions of higher 
education, selected for participation in the College 
Affordability Demonstration Program, any require-
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ments of this Act or the regulations thereunder as 
deemed necessary by the Secretary to meet the pur-
pose described in subsection (a)(1), and shall make 
a determination that the waiver can reasonably be 
expected to result in reduced costs to students or in-
stitutions without an increase in Federal program 
costs. The Secretary may not waive under this para-
graph the maximum award amounts for an academic 
year or loan period. 
‘‘(3) ELIGIBLE APPLICANTS.— 
‘‘(A) ELIGIBLE INSTITUTIONS.—Except as 
provided in subparagraph (B), only an institu-
tion of higher education that is eligible to par-
ticipate in programs under this title shall be eli-
gible to participate in the demonstration pro-
gram authorized under this section. 
‘‘(B) PROHIBITION.—An institution of 
higher education described in section 102 shall 
not be eligible to participate in the demonstra-
tion program authorized under this section. 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—Each institution or system 
of institutions desiring to participate in the dem-
onstration program under this section shall submit 
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an application to the Secretary at such time and in 
such manner as the Secretary may require. 
‘‘(2) CONTENTS OF APPLICATIONS.—Each ap-
plication for the college affordability demonstration 
program shall include at least the following: 
‘‘(A) a description of the institution or sys-
tem or consortium of institutions and what 
quality assurance mechanisms are in place to 
ensure the integrity of the Federal financial aid 
programs; 
‘‘(B) a description of the innovation or in-
novations being proposed and the affected pro-
grams and students, including— 
‘‘(i) a description of any collaborative 
arrangements with other institutions or or-
ganizations to reduce costs; 
‘‘(ii) a description of any expected 
economic impact of participation in the 
program within the community in which 
the institution is located; and 
‘‘(iii) a description of any means the 
institution will employ to reduce the costs 
of instructional materials, such as text-
books; 
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‘‘(C) a description of each regulatory or 
statutory requirement for which waivers are 
sought, with a reason for each waiver; 
‘‘(D) a description of the expected out-
comes of the program changes proposed, includ-
ing the estimated reductions in costs both for 
the institution and for students; 
‘‘(E) an assurance from each institution in 
a system or consortium of a commitment to ful-
fill its role as described in the application; 
‘‘(F) an assurance that the participating 
institution or system of institutions will offer 
full cooperation with the ongoing evaluations of 
the demonstration program provided for in this 
section; and 
‘‘(G) any other information or assurances 
the Secretary may require. 
‘‘(d) SELECTION.—In selecting institutions to partici-
pate in the demonstration program under this section, the 
Secretary shall take into account— 
‘‘(1) the number and quality of applications re-
ceived, determined on the basis of the contents re-
quired by subsection (c)(2); 
‘‘(2) the Department’s capacity to oversee and 
monitor each institution’s participation; 
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‘‘(3) an institution’s— 
‘‘(A) financial responsibility; 
‘‘(B) administrative capability; 
‘‘(C) program or programs being offered 
via distance education, if applicable; 
‘‘(D) student completion rates; and 
‘‘(E) student loan default rates; and 
‘‘(4) the participation of a diverse group of in-
stitutions with respect to size, mission, and geo-
graphic distribution. 
‘‘(e) NOTIFICATION.—The Secretary shall make 
available to the public and to the authorizing committees 
a list of institutions selected to participate in the dem-
onstration program authorized by this section. Such notice 
shall include a listing of the specific statutory and regu-
latory requirements being waived for each institution and 
a description of the innovations being demonstrated. 
‘‘(f) EVALUATIONS AND REPORTS.— 
‘‘(1) EVALUATION.—The Secretary shall evalu-
ate the demonstration program authorized under 
this section on a biennial basis. Such evaluations 
specifically shall review— 
‘‘(A) the extent to which expected out-
comes, including the estimated reductions in 
cost, were achieved; 
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‘‘(B) the number and types of students 
participating in the programs offered, including 
the progress of participating students toward 
recognized certificates or degrees and the extent 
to which participation in such programs in-
creased; 
‘‘(C) issues related to student financial as-
sistance associated with the innovations under-
taken; 
‘‘(D) effective technologies and alternative 
methodologies for delivering student financial 
assistance; 
‘‘(E) the extent of the cost savings to the 
institution, the student, and the Federal Gov-
ernment resulting from the waivers provided, 
and an estimate as to future cost savings for 
the duration of the demonstration program; 
‘‘(F) the extent to which students saved 
money by completing their postsecondary edu-
cation sooner; 
‘‘(G) the extent to which the institution re-
duced its tuition and fees and its costs by par-
ticipating in the demonstration program; 
‘‘(H) the extent to which any collaborative 
arrangements with other institutions or organi-
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281 
‘‘(g) OVERSIGHT.—In conducting the demonstration 
program authorized under this section, the Secretary 
shall, on a continuing basis— 
‘‘(1) ensure compliance of institutions or sys-
tems of institutions with the requirements of this 
title (other than the sections and regulations that 
are waived under subsection (b)(2)); 
‘‘(2) provide technical assistance to institutions 
in their application to and participation in the dem-
onstration program; 
‘‘(3) monitor fluctuations in the student popu-
lation enrolled in the participating institutions or 
systems of institutions; 
‘‘(4) monitor changes in financial assistance 
provided at the institution; and 
‘‘(5) consult with appropriate accrediting agen-
cies or associations and appropriate State regulatory 
authorities. 
‘‘(h) TERMINATION OF AUTHORITY.—The authority 
of the Secretary under this section shall cease to be effec-
tive on October 1, 2012.’’. 
SEC. 487. PROGRAM PARTICIPATION AGREEMENTS. 
(a) REFUND POLICIES.—Section 487(a) (20 U.S.C. 
1094(a)) is amended— 
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(1) in paragraph (16), by inserting ‘‘or other 
Federal, State, or local government funds’’ after 
‘‘funds under this title’’ each place it appears; 
(2) in paragraph (22), by striking ‘‘refund pol-
icy’’ and inserting ‘‘policy on the return of title IV 
funds’’; and 
(3) in paragraph (23)— 
(A) by moving subparagraph (C) 2 em 
spaces to the left; and 
(B) by adding after such subparagraph the 
following new subparagraph: 
‘‘(D) An institution shall be considered in com-
pliance with the requirements of subparagraph (A) 
with respect to any student to whom the institution 
electronically transmits a message containing a voter 
registration form acceptable for use in the State in 
which the institution is located, or an Internet ad-
dress where such a form can be downloaded, pro-
vided such information is in an electronic message 
devoted to voter registration.’’. 
(b) ENFORCING THE 90/10 RULE.— 
(1) AMENDMENT.—Section 487(a) (20 U.S.C. 
1094(a)) is further amended by adding at the end 
the following new paragraph: 
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‘‘(24) The institution will, as calculated in ac-
cordance with subsection (f)(1), have not less than 
10 percent of its revenues from sources other than 
funds provided under this title, or will be subject to 
the sanctions described in subsection (f)(2).’’. 
(2) IMPLEMENTATION.—Section 487 is further 
amended by adding at the end the following new 
subsection: 
‘‘(f) IMPLEMENTATION OF NON-TITLE IV REVENUE 
REQUIREMENT.— 
‘‘(1) CALCULATION.—In carrying out sub-
section (a)(24), an institution shall use the cash 
basis of accounting and count the following funds to-
ward the 10 percent of revenues from sources of 
funds other than funds provided under this title: 
‘‘(A) funds used by students to pay tuition, 
fees, and other institutional charges from 
sources other than funds provided under this 
title as long as the institution can reasonably 
demonstrate that such funds were used for such 
purposes; 
‘‘(B) institutional funds used to satisfy 
matching-fund 
requirements 
for 
programs 
under this title; 
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284 
‘‘(C) funds used by a student from savings 
plans for educational expenses established by or 
on behalf of the student and which qualify for 
special tax treatment under the Internal Rev-
enue Code of 1986; 
‘‘(D) funds paid by a student, or on behalf 
of a student by a party other than the institu-
tion, for an education or training program that 
is not eligible for funds under this title, so long 
as the program is approved or licensed by the 
appropriate State agency or an accrediting 
agency recognized by the Secretary; 
‘‘(E) institutional aid, as follows: 
‘‘(i) in the case of institutional loans, 
only the amount of loan repayments re-
ceived during the fiscal year; 
‘‘(ii) in the case of institutional schol-
arships, only those provided by the institu-
tion in the form of monetary aid based 
upon the academic achievements or finan-
cial need of students, and disbursed during 
the fiscal year from an established re-
stricted account; and 
‘‘(iii) in the case of tuition discounts, 
only those tuition discounts based upon the 
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285 
academic achievement or financial need of 
the students; and 
‘‘(F) funds generated by the institution 
from institutional activities that are necessary 
for the education and training of the institu-
tion’s students, if such activities are— 
‘‘(i) conducted under the control of 
the institution; 
‘‘(ii) performed under the supervision 
of a member of the institution’s faculty; 
and 
‘‘(iii) required to be performed by all 
students in a specific educational program 
at the institution. 
‘‘(2) SANCTIONS.—An institution that fails to 
meet the requirements of subsection (a)(24) for 3 
consecutive years shall become ineligible to partici-
pate in the programs authorized by this title. In ad-
dition to such other means of enforcing the require-
ments of this title as may be available to the Sec-
retary, if an institution fails to meet the require-
ments of subsection (a)(24) in any year, the Sec-
retary may impose one or more of the following 
sanctions on the institution: 
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286 
‘‘(A) Place the institution on provisional 
certification in accordance with section 498(h) 
until the institution demonstrates, to the satis-
faction of the Secretary, that it is in compliance 
with subsection (a)(24). 
‘‘(B) Require such other increased moni-
toring and reporting requirements as the Sec-
retary determines necessary until the institution 
demonstrates, to the satisfaction of the Sec-
retary, that it is in compliance with subsection 
(a)(24). 
‘‘(3) PUBLICATION
ON
COOL
WEBSITE.—The 
Secretary shall identify, on the College Opportunities 
On-Line website established pursuant to section 
131(b), any institution that fails to meet the re-
quirements of subsection (a)(24) in any year as an 
institution that is failing to meet the minimum non- 
Federal source of revenue requirements of that sub-
section.’’. 
(c) REPORTS ON DISCIPLINARY PROCEEDINGS.— 
(1) AMENDMENT.—Section 487(a) (20 U.S.C. 
1094(a)) is further amended by adding after para-
graph (24), as added by subsection (b) of this sec-
tion, the following new paragraph: 
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‘‘(25) The institution will disclose to the alleged 
victim of any crime of violence (as that term is de-
fined in section 16 of title 18), or a nonforcible sex 
offense, the final results of any disciplinary pro-
ceeding conducted by such institution against a stu-
dent who is the alleged perpetrator of such crime or 
offense with respect to such crime or offense. If the 
alleged victim of such crime or offense is deceased, 
the next of kin of such victim shall be treated as the 
alleged victim for purposes of this paragraph.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply with respect to any dis-
ciplinary proceeding conducted by such institution 
on or after one year after the date of enactment of 
this Act. 
(d) CODE OF CONDUCT AND PREFERRED LENDER 
LIST.—Section 487(a) is further amended by adding after 
paragraph (25) (as added by subsection (c) of this section) 
the following new paragraphs: 
‘‘(26) CODE OF CONDUCT.— 
‘‘(A) IN
GENERAL.—The institution will 
establish, follow, and enforce a code of conduct 
regarding student loans that includes not less 
than the following: 
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‘‘(i) REVENUE
SHARING
PROHIBI-
TION.—The institution is prohibited from 
receiving anything of value from any lender 
in exchange for any advantage sought by 
the lender to make educational loans to a 
student enrolled, or who is expected to be 
enrolled, at the institution, except that an 
institution shall not be prohibited from re-
ceiving a philanthropic contribution from a 
lender if the contribution is not made in 
exchange for any such advantage. 
‘‘(ii) GIFT AND TRIP PROHIBITION.— 
Any employee who is employed in the fi-
nancial aid office of the institution, or who 
otherwise has responsibilities with respect 
to educational loans or other financial aid 
of the institution, is prohibited from taking 
from any lender any gift or trip worth 
more than nominal value, except for rea-
sonable expenses for professional develop-
ment that will improve the efficiency and 
effectiveness of programs under this title 
and for domestic travel to such profes-
sional development. 
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‘‘(iii) 
CONTRACTING
ARRANGE-
MENTS.—Any employee who is employed in 
the financial aid office of the institution, or 
who otherwise has responsibilities with re-
spect to educational loans or other finan-
cial aid of the institution, shall be prohib-
ited from entering into any type of con-
sulting arrangement or other contract to 
provide services to a lender. 
‘‘(iv) ADVISORY
BOARD
COMPENSA-
TION.—Any employee who is employed in 
the financial aid office of the institution, or 
who otherwise has responsibilities with re-
spect to educational loans or other student 
financial aid of the institution, and who 
serves on an advisory board, commission, 
or group established by a lender or group 
of lenders shall be prohibited from receiv-
ing anything of value from the lender or 
group of lenders, except that the employee 
may be reimbursed for reasonable expenses 
incurred in serving on such advisory board, 
commission or group. 
‘‘(v) 
INTERACTION
WITH
BOR-
ROWERS.—The institution will not— 
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290 
‘‘(I) for any first-time borrower, 
assign, through award packaging or 
other methods, the borrower’s loan to 
a particular lender; and 
‘‘(II) refuse to certify, or, delay 
certification of, any loan in accord-
ance with paragraph (6) based on the 
borrower’s selection of a particular 
lender or guaranty agency. 
‘‘(B) DESIGNATION.—The institution will 
designate an individual who shall be responsible 
for signing an annual attestation on behalf of 
the institution that the institution agrees to, 
and is in compliance with, the requirements of 
the code of conduct described in this paragraph. 
Such individual shall be the chief executive offi-
cer, chief operating officer, chief financial offi-
cer, or comparable official, of the institution, 
and shall annually submit the signed attestation 
to the Secretary. 
‘‘(C) AVAILABILITY.—The institution will 
make the code of conduct widely available to 
the institution’s faculty members, students, and 
parents through a variety of means, including 
the institution’s website. 
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291 
‘‘(27) PREFERRED LENDER LISTS.— 
‘‘(A) IN GENERAL.—In the case of an in-
stitution (including an employee or agent of an 
institution) that maintains a preferred lender 
list, in print or any other medium, through 
which the institution recommends one or more 
specific lenders for loans made under part B to 
the students attending the institution (or the 
parents of such students), the institution will— 
‘‘(i) clearly and fully disclose on the 
preferred lender list— 
‘‘(I) why the institution has in-
cluded each lender as a preferred 
lender, especially with respect to 
terms and conditions favorable to the 
borrower; and 
‘‘(II) that the students attending 
the institution (or the parents of such 
students) do not have to borrow from 
a lender on the preferred lender list; 
‘‘(ii) ensure, through the use of the 
list provided by the Secretary under sub-
paragraph (C), that— 
‘‘(I) there are not less than 3 
lenders named on the preferred lend-
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292 
ing list that are not affiliates of each 
other; and 
‘‘(II) the preferred lender list— 
‘‘(aa) specifically indicates, 
for each lender on the list, 
whether the lender is or is not an 
affiliate of each other lender on 
the list; and 
‘‘(bb) if the lender is an af-
filiate of another lender on the 
list, describes the specifics of 
such affiliation; and 
‘‘(iii) establish a process to ensure 
that lenders are placed upon the preferred 
lender list on the basis of the benefits pro-
vided to borrowers, including — 
‘‘(I) highly competitive interest 
rates, terms, or conditions for loans 
made under part B; 
‘‘(II) high-quality customer serv-
ice for such loans; or 
‘‘(III) additional benefits beyond 
the standard terms and conditions for 
such loans. 
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