409 
•HR 4137 EH2S 
of the second fiscal year following the year in 
which the loan entered repayment is not consid-
ered as in default for purposes of this sub-
section’’; and 
(B) by striking ‘‘such fiscal year’’ and in-
serting ‘‘such second fiscal year’’; and 
(5) in paragraph (4)— 
(A) by amending the header to read as fol-
lows: ‘‘COLLECTION
AND
REPORTING
OF
CO-
HORT DEFAULT RATES AND LIFE OF COHORT 
DEFAULT RATES.—’’; and 
(B) by amending subparagraph (A) to read 
as follows: 
‘‘(A) The Secretary shall collect data from all 
insurers under this part and shall publish not less 
often than once every fiscal year a report showing 
cohort default data and life of cohort default rate for 
each category of institution, including: (i) 4-year 
public institutions; (ii) 4-year private nonprofit insti-
tutions; (iii) 2-year public institutions; (iv) 2-year 
private institutions; (v) 4-year proprietary institu-
tions; (vi) 2-year proprietary institutions; and (vii) 
less than 2-year proprietary institutions. For pur-
poses of this subparagraph, the life of cohort default 
rate means, for any fiscal year in which 1 or more
410 
•HR 4137 EH2S 
current and former students at an institution enter 
repayment on loans under section 428, 428A, or 
428H, received for attendance at the institution, the 
percentage of those current and former students who 
enter repayment on such loans (or on the portion of 
a loan made under section 428C that is used to 
repay any such loans) received for attendance at the 
institution in that fiscal year who default before the 
end of each succeeding fiscal year.’’. 
(b) EFFECTIVE DATE AND TRANSITION.— 
(1) EFFECTIVE DATE.—The amendments made 
by subsection (a) shall be effective for purposes of 
calculating cohort default rates for fiscal year 2008 
and succeeding fiscal years. 
(2) TRANSITION.—Notwithstanding paragraph 
(1), the method of calculating cohort default rates 
under section 435(m) of the Higher Education Act 
of 1965 as in effect on the day before the date of 
enactment of this Act shall continue in effect, and 
the rates so calculated shall be the basis for any 
sanctions imposed on institutions of higher edu-
cation because of their cohort default rates, until 
three consecutive years of cohort default rates cal-
culated in accordance with the amendments made by 
subsection (a) are available.
416 
•HR 4137 EH2S 
(2) by adding at the end the following new sub-
section: 
‘‘(b) OFF-CAMPUS COMMUNITY SERVICE.— 
‘‘(1) GRANTS
AUTHORIZED.—In addition to 
funds made available under section 443(b)(2)(B), 
the Secretary is authorized to award grants to insti-
tutions participating under this part to supplement 
off-campus community service employment. 
‘‘(2) USE OF FUNDS.—In any year in which 
section 443(b)(2)(B) applies, an institution shall en-
sure that funds granted to such institution under 
this subsection are used in accordance with such sec-
tion 443 to recruit and compensate students (includ-
ing compensation for time spent in training and for 
travel directly related to such community service). 
‘‘(3) PRIORITY.—In awarding grants under this 
subsection, the Secretary shall give priority to appli-
cations that support postsecondary students assist-
ing with early childhood education activities and ac-
tivities in preparation for and during emergencies 
and natural disasters. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to carry out 
this subsection such sums as may be necessary for
417 
•HR 4137 EH2S 
fiscal year 2009 and each of the 4 succeeding fiscal 
years.’’. 
SEC. 443. WORK COLLEGES. 
(a) WORK-LEARNING-SERVICE.—Section 448 (42 
U.S.C. 2756b) is amended by striking ‘‘work-learning’’ 
each place it appears and inserting ‘‘work-learning-serv-
ice’’. 
(b) DEFINITION.—Section 448(e) is amended to read 
as follows: 
‘‘(e) DEFINITIONS.—For the purpose of this sec-
tion— 
‘‘(1) the term ‘work college’ means an eligible 
institution that— 
‘‘(A) has been a public or private non-
profit, four-year, degree granting institution 
with a commitment to community service; 
‘‘(B) has operated a comprehensive work- 
learning-service program for at least 2 years; 
‘‘(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, except 
summer school, unless the student is engaged in
418 
•HR 4137 EH2S 
an institutionally organized or approved study 
abroad or externship program; and 
‘‘(D) provides students participating in the 
comprehensive work-learning-service program 
with the opportunity to contribute to their edu-
cation and to the welfare of the community as 
a whole; and 
‘‘(2) the term ‘comprehensive student work- 
learning-service program’ means a student work- 
learning-service program that— 
‘‘(A) is an integral and stated part of the 
institution’s educational philosophy and pro-
gram; 
‘‘(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-
419 
•HR 4137 EH2S 
service program similar to the consequences for 
failure in the regular academic program.’’. 
(c) AUTHORIZATION.—Section 448(f) is amended— 
(1) by striking ‘‘$5,000,000’’ and inserting 
‘‘such sums as may be necessary’’; and 
(2) by striking ‘‘1999’’ and inserting ‘‘2009’’. 
PART D—FEDERAL DIRECT STUDENT LOANS 
SEC. 451. REAUTHORIZATION. 
Section 458(a) (20 U.S.C. 1087h(a)) is amended— 
(1) in paragraph (2)— 
(A) in the heading of such paragraph, by 
striking ‘‘2011’’ and inserting ‘‘2013’’; and 
(B) by striking ‘‘2011’’ and inserting 
‘‘2013’’; and 
(2) in paragraph (3), by striking ‘‘2011’’ and 
inserting ‘‘2013’’. 
SEC. 452. PUBLIC SERVICE JOB DEFINITION. 
Section 455(m)(3)(B) (20 U.S.C. 1087e(m)(3)(B)) is 
amended to read as follows: 
‘‘(B) PUBLIC
SERVICE
JOB.—The term 
‘public service job’ means— 
‘‘(i) a full-time job in emergency man-
agement, 
government 
(excluding 
time 
served as a member of Congress), military 
service, public safety, law enforcement,
420 
•HR 4137 EH2S 
public health (including nurses, nurse 
practitioners, nurses in a clinical setting, 
and full-time professionals engaged in 
health care practitioner occupations and 
health care support occupations, as such 
terms are defined by the Bureau of Labor 
Statistics), public education, social work in 
a public child or family service agency, 
public interest law services (including pros-
ecution or public defense or legal advocacy 
on behalf of low-income communities at a 
nonprofit organization), early childhood 
education (including licensed or regulated 
childcare, Head Start, and State funded 
prekindergarten), public service for individ-
uals with disabilities, public service for the 
elderly, public library sciences, school- 
based library sciences and other school- 
based services, or at an organization that 
is described in section 501(c)(3) of the In-
ternal Revenue Code of 1986 and exempt 
from taxation under section 501(a) of such 
Code; or 
‘‘(ii) teaching as a full-time faculty 
member at a Tribal College or University
421 
•HR 4137 EH2S 
as defined in section 316(b) and other fac-
ulty teaching in high-needs subject areas 
or areas of shortage (including nurse fac-
ulty, foreign language faculty and part- 
time faculty at community colleges), as de-
termined by the Secretary.’’. 
SEC. 453. IDENTITY FRAUD PROTECTION. 
Section 455 (20 U.S.C. 1087e) is further amended 
by adding at the end the following new subsection: 
‘‘(n) IDENTITY FRAUD PROTECTION.—The Secretary 
of Education shall take such steps as may be necessary 
to ensure that monthly Direct Loan statements and other 
publications of the Department of Education do not con-
tain more than 4 digits of the Social Security number of 
any individual.’’. 
SEC. 454. NO ACCRUAL OF INTEREST FOR ACTIVE DUTY 
SERVICE MEMBERS. 
(a) AMENDMENT.—Section 455 (20 U.S.C. 1087e) is 
further amended by adding at the end the following: 
‘‘(o) NO ACCRUAL OF INTEREST FOR ACTIVE DUTY 
SERVICE MEMBERS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this part, and except as provided in 
paragraph (3), interest shall not accrue for an eligi-
422 
•HR 4137 EH2S 
ble borrower on a loan made under this part that is 
disbursed on or after October 1, 2008. 
‘‘(2) CONSOLIDATION LOANS.—In the case of 
any consolidation loan made under this part that is 
disbursed on or after October 1, 2008, interest shall 
not accrue pursuant to this subsection only on such 
portion of such loan as was used to repay a loan 
made under this part that was disbursed on or after 
October 1, 2008. 
‘‘(3) ELIGIBLE BORROWER.—In this subsection, 
the term ‘eligible borrower’ means an individual 
who— 
‘‘(A)(i) is serving on active duty during a 
war or other military operation or national 
emergency; or 
‘‘(ii) is performing qualifying National 
Guard duty during a war or other military op-
eration or national emergency; and 
‘‘(B) is serving in an area of hostilities in 
which service qualifies for special pay under 
section 310 of title 37, United States Code. 
‘‘(4) LIMITATION.—An individual who qualifies 
as an eligible borrower under this subsection may re-
ceive the benefit of this subsection for not more than 
60 months.’’.
423 
•HR 4137 EH2S 
(b) CONSOLIDATION LOANS.—Section 428C(b)(5) 
(20 U.S.C. 1078–3(b)(5)) is amended by inserting after 
the first sentence the following: ‘‘In addition, in the event 
that a borrower chooses to obtain a consolidation loan for 
the purposes of using the no accrual of interest for active 
duty service members program offered under section 
455(o), the Secretary shall offer a Federal Direct Consoli-
dation loan to any such borrower who applies for partici-
pation in such program.’’. 
SEC. 455. DIRECT LOAN PROGRAM AUDIT AND REPORTING 
REQUIREMENTS. 
(a) AUDIT OF DIRECT LOAN SERVICING PORTFOLIO 
AND DIRECT LOAN SERVICING CONTRACTS.—Section 458 
(20 U.S.C. 1087h) is amended by adding at the end the 
following: 
‘‘(d) AUDIT OF DIRECT LOAN SERVICING PORTFOLIO 
AND DIRECT LOAN SERVICING CONTRACTS.—The Sec-
retary shall have a financial and compliance audit of all 
loans owned by the Department of Education and made 
under the William D. Ford Federal Direct Loan Program 
and all contracts for the origination, servicing, collection, 
and related activities of such loans, conducted annually by 
a qualified independent organization from a list of quali-
fied organizations promulgated by the Secretary in accord-
ance with standards established by the Comptroller Gen-
424 
•HR 4137 EH2S 
eral. The standards shall measure the servicer’s compli-
ance with the due diligence standards and shall include 
a defined statistical sampling technique designed to meas-
ure the performance rating of the servicer for the purpose 
of this section. The Secretary shall submit the audit to 
Congress within 60 days of its completion and shall at 
the same time make the results of the audit publicly avail-
able.’’. 
(b) QUARTERLY REPORTING
OF ADMINISTRATIVE 
EXPENSES.—Section 458 (20 U.S.C. 1087h) is further 
amended by adding at the end the following: 
‘‘(e) BUDGET JUSTIFICATION AND QUARTERLY RE-
PORTS.—In addition to the requirements of subsection (c), 
and as a prerequisite to expending funds under this sec-
tion, the Secretary shall— 
‘‘(1) make publicly available immediately upon 
providing to Congress, its annual budget justifica-
tion referenced in the last sentence of subsection (c), 
including the detailed descriptions of activities and 
the costs for each such activity; and 
‘‘(2) make publicly available within 30 days of 
the close of each calendar quarter, an interim report 
with at least the same level of detail as the annual 
report referred to above, showing the detailed de-
425 
•HR 4137 EH2S 
scriptions of activities and the costs for each such 
activity, for the quarter, which shall include— 
‘‘(A) amendments to any contracts entered 
into by the Department for the purposes of 
servicing, origination, consolidating, or other-
wise providing administrative support for the 
Direct Loan program; 
‘‘(B) a complete listing of all milestones 
for upgrades and improvements in any of the 
contracts referenced in section 458(d)(1) and 
the progress towards meeting such milestones; 
‘‘(C) with respect to each of the guaranty 
agencies operating under a guaranty agreement 
under section 428(c)— 
‘‘(i) un-reconciled balances in held 
loans by year of origination; 
‘‘(ii) status and number of defaulted 
loans by length of default in 30-day incre-
ments; and 
‘‘(iii) status and number of delinquent 
loans by length of delinquency in 30-day 
increments; 
‘‘(D) information technology purchases 
made under this section; and
426 
•HR 4137 EH2S 
‘‘(E) costs and terms of all contracts with 
external consultants and employees of institu-
tions of higher education carrying out activities 
under this part.’’. 
(c) AUDIT OF FEDERAL FAMILY EDUCATION LOAN 
PROGRAM PORTFOLIO AND GUARANTY AGENCIES.—The 
Secretary of Education shall have a financial and compli-
ance audit of all guaranty agencies participating in the 
loan programs under part B of title IV of the Higher Edu-
cation Act of 1965 (including each guaranty agencies’ con-
tract for the servicing, collecting, and related activities of 
such loans), conducted annually by a qualified inde-
pendent organization from a list of qualified organizations 
promulgated by the Secretary in accordance with the 
standards established by the Comptroller General. The 
standards shall measure the guaranty agency’s compliance 
with the due diligence standards and shall include a de-
fined statistical sampling technique designed to measure 
the performance rating of the guaranty agency for the 
purpose of this subsection. The Secretary shall submit the 
audit to Congress within 60 days of its completion and 
shall at the same time make the results of the audit pub-
licly available.
427 
•HR 4137 EH2S 
PART E—PERKINS LOANS 
SEC. 461. EXTENSION OF AUTHORITY. 
Section 461(b) (20 U.S.C. 1087aa(b)) is amended— 
(1) 
in 
paragraph 
(1), 
by 
striking 
‘‘$250,000,000 for fiscal year 1999’’ and inserting 
‘‘$350,000,000 for fiscal year 2009’’; and 
(2) in paragraph (2), by striking ‘‘2003’’ each 
place it appears and inserting ‘‘2014’’. 
SEC. 462. ALLOWANCE FOR BOOKS AND SUPPLIES. 
Section 462(c)(4)(D) (20 U.S.C. 1087bb(c)(4)(D)) is 
amended by striking ‘‘$450’’ and inserting ‘‘$600’’. 
SEC. 463. AGREEMENTS WITH INSTITUTIONS. 
(a) 
TRANSFERS
FOR
COLLECTION.—Section 
463(a)(4)(B) (20 U.S.C. 1087cc(a)(4)(B)) is amended to 
read as follows: 
‘‘(B) if the institution is not one described 
in subparagraph (A), the Secretary may allow 
such institution to refer such note or agreement 
to the Secretary, without recompense, except 
that any sums collected on such a loan (less an 
amount not to exceed 30 percent of any such 
sums collected to cover the Secretary’s collec-
tion costs) shall be repaid to such institution no 
later than 180 days after collection by the Sec-
retary and treated as an additional capital con-
tribution under section 462;’’.
428 
•HR 4137 EH2S 
(b) REVISE AUTHORITY TO PRESCRIBE ADDITIONAL 
FISCAL
CONTROLS.—Section 463(a)(9) (20 U.S.C. 
1087cc(a)(9)) is amended by inserting ‘‘, except that noth-
ing in this paragraph shall be construed to permit the Sec-
retary to require the assignment of loans to the Secretary 
other than as is provided for in paragraphs (4) and (5)’’ 
before the period. 
SEC. 464. PERKINS 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 
(20 
U.S.C. 
1087dd) is further amended— 
(1) in subsection (e)—
429 
•HR 4137 EH2S 
(A) in the matter preceding paragraph (1), 
by striking ‘‘, upon written request,’’ and in-
serting ‘‘, as documented in accordance with 
paragraph (2),’’; 
(B) 
by 
redesignating 
paragraphs 
(1) 
through (3) as subparagraphs (A) through (C), 
respectively; 
(C) by inserting ‘‘(1)’’ after ‘‘FORBEAR-
ANCE.—’’; and 
(D) by adding at the end the following: 
‘‘(2) For the purpose of paragraph (1), the terms of 
forbearance agreed to by the parties shall be documented 
by— 
‘‘(A) confirming the agreement of the borrower 
by notice to the borrower from the institution of 
higher education; and 
‘‘(B) recording the terms in the borrower’s 
file.’’; 
(2) in subsection (h)(1)(A), by striking ‘‘12 
ontime’’ and inserting ‘‘9 on-time’’; and 
(3) in subsection (j)(2), by striking ‘‘(e)(3)’’ 
and inserting ‘‘(e)(1)(C)’’. 
SEC. 465. CANCELLATION FOR PUBLIC SERVICE. 
Section 465(a) (20 U.S.C. 1087ee(a)) is amended— 
(1) in paragraph (2)—
430 
•HR 4137 EH2S 
(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) as a full-time teacher for service in an 
academic year in a high-need school;’’; 
(B) in subparagraph (B), by striking 
‘‘Head Start Act which’’ and inserting ‘‘Head 
Start Act, or in a prekindergarten or child care 
program that is licensed or regulated by the 
State, that’’; 
(C) in subparagraph (H), by striking ‘‘or’’ 
after the semicolon; 
(D) in subparagraph (I), by striking the 
period and inserting a semicolon; and 
(E) by inserting before the matter fol-
lowing subparagraph (I) the following: 
‘‘(J) as a full-time fire fighter for service to a 
local, State, or Federal fire department or fire dis-
trict; 
‘‘(K) as a full-time faculty member at a Tribal 
College or University, as that term is defined in sec-
tion 316; 
‘‘(L) as a librarian, if the librarian has a mas-
ter’s degree in library science and is employed in— 
‘‘(i) an elementary school or secondary 
school that is eligible for assistance under title
431 
•HR 4137 EH2S 
I of the Elementary and Secondary Education 
Act of 1965; or 
‘‘(ii) a public library that serves a geo-
graphic area that contains 1 or more schools el-
igible for assistance under title I of the Elemen-
tary and Secondary Education Act of 1965; or 
‘‘(M) as a full-time speech language therapist, 
if the therapist has a master’s degree and is working 
exclusively with schools that are eligible for assist-
ance under title I of the Elementary and Secondary 
Education Act of 1965.’’; and 
(2) in paragraph (3)(A)— 
(A) in clause (i)— 
(i) by inserting ‘‘(D),’’ after ‘‘(C),’’; 
and 
(ii) by striking ‘‘or (I)’’ and inserting 
‘‘(I), (J), (K), (L), or (M)’’; 
(B) in clause (ii), by inserting ‘‘or’’ after 
the semicolon; 
(C) by striking clause (iii); and 
(D) by redesignating clause (iv) as clause 
(iii). 
SEC. 466. SENSE OF CONGRESS REGARDING PERKINS 
LOANS. 
It is the sense of Congress that—
432 
•HR 4137 EH2S 
(1) the Federal Perkins Loan Program, which 
provides low-interest loans to help needy students fi-
nance the costs of postsecondary education, is an 
important part of Federal student aid, and should 
remain a campus-based aid program at colleges and 
universities; and 
(2) in order to strengthen the Federal Perkins 
Loan Program, the Federal Government should sup-
port increased funds to the Program and restore the 
capital contribution funds for the Program, to pro-
vide more low-income students with affordable bor-
rowing options. 
PART F—NEED ANALYSIS 
SEC. 471. COST OF ATTENDANCE. 
(a) AMENDMENTS.—Section 472(3) (20 U.S.C. 
1087kk(3)) is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ 
after the semicolon; 
(2) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(3) by inserting after subparagraph (B), as 
amended by paragraph (1), the following: 
‘‘(C) for students who live in housing lo-
cated on a military base or for which a basic al-
lowance is provided under section 403(b) of title
433 
•HR 4137 EH2S 
37, United States Code, shall be an allowance 
based on the expenses reasonably incurred by 
such students for board but not for room; and’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on July 1, 2009. 
SEC. 472. DISCRETION TO MAKE ADJUSTMENTS FOR NURS-
ING HOME EXPENSES. 
Section 479A(a) (20 U.S.C. 1087tt) is amended by 
striking ‘‘medical or dental expenses’’ and inserting ‘‘med-
ical, dental, or nursing home expenses’’. 
SEC. 473. DEFINITIONS. 
(a) TOTAL INCOME.—Section 480(a) (20 U.S.C. 
1087vv(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(3) Notwithstanding paragraph (1), with respect to 
dislocated workers (as defined in section 101 of the Work-
force Investment Act of 1998 (29 U.S.C. 2801)), the term 
‘total income’ is equal to estimated adjusted gross income 
plus estimated untaxed income and benefits for the cur-
rent tax year minus estimated excludable income (as de-
fined in subsection (e)) in for the current tax year.’’. 
(b) UNTAXED INCOME
AND BENEFITS.—Section 
480(b)(6) (20 U.S.C. 1087vv(b)(6)) is amended by insert-
ing ‘‘, except that the value of on-base military housing 
or the value of basic allowance for housing determined
434 
•HR 4137 EH2S 
under section 403(b) of title 37, United States Code, re-
ceived by the parents, in the case of a dependent student, 
or the student or student’s spouse, in the case of an inde-
pendent student, shall be excluded’’ before the semicolon. 
(c) TREATMENT
OF
COOPERATIVE
EDUCATION 
WORK INCOME.—Section 480(e) (20 U.S.C. 1087vv(e)) is 
amended— 
(1) by redesignating paragraphs (2) through 
(4) as paragraphs (3) through (5), respectively; and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) any income earned from work under a co-
operative education program offered by an institu-
tion of higher education;’’. 
(d) TREATMENT OF VETERANS’ EDUCATION BENE-
FITS IN ESTIMATED FINANCIAL ASSISTANCE CALCULA-
TION.—Section 480(j) (20 U.S.C. 1087vv(j)) is amended 
by adding at the end the following new paragraph: 
‘‘(4) Notwithstanding paragraph (1), for the first 
year a student receives veterans’ education benefits under 
chapter 30 of title 38, United States Code, the amount 
of such veterans’ education benefits that is treated as esti-
mated financial assistance not received under this title for 
the purposes of section 471(3) shall be calculated by sub-
tracting the amount that the student’s basic pay was re-
435 
•HR 4137 EH2S 
duced under section 3011(b) or 3012(c) of such title in 
order to be eligible to receive such benefits from the 
amount of such veterans’ education benefits.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section are effective on July 1, 2009. 
SEC. 474. USE OF MOST RECENT TAX INFORMATION IN 
NEED ANALYSIS. 
Section 480(a)(1) of the Higher Education Act of 
1965 (20 U.S.C. 1087vv(a)(1)), as amended by section 
473 of this Act, is further amended by adding at the end 
the following new sentence: ‘‘Notwithstanding the pre-
ceding sentence, the Secretary shall, by regulation, provide 
for the use of the second preceding tax year when and 
to the extent necessary to carry out the simplification of 
applications used for the estimation and determination of 
financial aid eligibility through the sharing of data with 
the Internal Revenue Service with the consent of the tax-
payer.’’. 
PART G—GENERAL PROVISIONS 
SEC. 481. COMPLIANCE CALENDAR. 
Section 482 (20 U.S.C. 1089) is amended by adding 
at the end the following: 
‘‘(e) COMPLIANCE CALENDAR.—Prior to the begin-
ning of each award year, the Secretary shall provide to 
institutions of higher education a list of all the reports
436 
•HR 4137 EH2S 
and disclosures required under this Act. The list shall in-
clude— 
‘‘(1) the date each report or disclosure is re-
quired to be completed and to be submitted, made 
available, or disseminated; 
‘‘(2) the required recipients of each report or 
disclosure; 
‘‘(3) any required method for transmittal or 
dissemination of each report or disclosure; 
‘‘(4) a description of the content of each report 
or disclosure sufficient to allow the institution to 
identify the appropriate individuals to be assigned 
the responsibility for such report or disclosure; 
‘‘(5) references to the statutory authority, ap-
plicable regulations, and current guidance issued by 
the Secretary regarding each report or disclosure; 
and 
‘‘(6) any other information which is pertinent to 
the content or distribution of the report or disclo-
sure.’’. 
SEC. 482. IMPROVEMENTS TO PAPER AND ELECTRONIC 
FORMS AND PROCESSES. 
(a) COMMON FINANCIAL AID FORM DEVELOPMENT 
AND PROCESSING.—Section 483 (20 U.S.C. 1090) is 
amended—
437 
•HR 4137 EH2S 
(1) in subsection (a)— 
(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; and 
(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-
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’. The Secretary shall work to make the 
FAFSA consumer-friendly and to make questions on 
the FAFSA easy for students and parents to read 
and understand, and shall ensure that the FAFSA
438 
•HR 4137 EH2S 
is available in formats accessible to individuals with 
disabilities. 
‘‘(2) 
EARLY
ESTIMATES.—The 
Secretary 
shall— 
‘‘(A) permit applicants to enter data in 
such forms as described in this subsection in 
the years prior to enrollment in order to obtain 
a non-binding estimate of the applicant’s family 
contribution (as defined in section 473); 
‘‘(B) permit applicants to update informa-
tion submitted on forms described in this sub-
section, without needing to re-enter previously 
submitted information; 
‘‘(C) develop a means to inform applicants, 
in the years prior to enrollment, of student aid 
options for individuals in similar financial situa-
tions; and 
‘‘(D) develop a means to provide a clear 
and conspicuous notice that the applicant’s ex-
pected family contribution is subject to change 
and may not reflect the final expected family 
contribution used to determine Federal student 
financial aid award amounts. 
‘‘(3) PAPER FORMAT.—
439 
•HR 4137 EH2S 
‘‘(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 
FAFSA, to be used for applicants meeting 
the requirements of subsections (b) and (c) 
of section 479. 
‘‘(ii) 
REDUCED
DATA
REQUIRE-
MENTS.—The EZ FAFSA 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 
subsections (b) and (c) of section 479. 
‘‘(iii) STATE
DATA.—The Secretary 
shall include on the EZ FAFSA such data 
items as may be necessary to award State 
financial assistance, as provided under 
paragraph (6), except that the Secretary
440 
•HR 4137 EH2S 
shall not include a State’s data if that 
State does not permit its applicants to use 
the EZ FAFSA for State assistance. 
‘‘(iv) FREE AVAILABILITY AND PROC-
ESSING.—The provisions of paragraph (7) 
shall apply to the EZ FAFSA, and the 
data collected by means of the EZ FAFSA 
shall be available to institutions of higher 
education, guaranty agencies, and States 
in accordance with paragraph (9). 
‘‘(v) TESTING.—The Secretary shall 
conduct appropriate field testing on the 
EZ FAFSA. 
‘‘(C) PROMOTING
THE
USE
OF
ELEC-
TRONIC FAFSA.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall make all efforts to encourage all ap-
plicants to utilize the electronic forms de-
scribed 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-
441 
•HR 4137 EH2S 
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 
paragraph (4) of this subsection. The Sec-
retary shall enable students to submit a 
form created under this subparagraph that 
may be downloaded and printed from an 
electronic file format in order to meet the 
filing 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 reduce produc-
tion of the paper form described in sub-
paragraph (A) of this paragraph. The Sec-
retary’s report will specifically address the 
impact of the digital divide on the fol-
lowing student populations: independent
442 
•HR 4137 EH2S 
students, 
traditionally 
underrepresented 
students, and dependent students. 
‘‘(4) ELECTRONIC FORMAT.— 
‘‘(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 entered for the 
applicant to be eligible for State financial as-
sistance, as provided under paragraph (6), ex-
cept the Secretary shall not require applicants 
to enter 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-
sections (b) and (c) of section 479.
443 
•HR 4137 EH2S 
‘‘(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 enter 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).
444 
•HR 4137 EH2S 
‘‘(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
451 
•HR 4137 EH2S 
‘‘(E) STATE NOTIFICATION TO THE SEC-
RETARY.— 
‘‘(i) IN GENERAL.—Each State agency 
that submits an application under section 
415C shall notify the Secretary— 
‘‘(I) whether the State permits 
an applicant to file a form described 
in paragraph (3)(B) or (4)(A) of this 
subsection for purposes of deter-
mining eligibility for State need-based 
grant aid; and 
‘‘(II) 
the 
State-specific 
non-
financial 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 (4)(A) of this subsection 
for purposes of determining eligibility for 
State need-based grant 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
452 
•HR 4137 EH2S 
‘‘(II) the notification under sub-
clause (I) shall include an estimate of 
the program cost to permit applicants 
to complete simplified application 
forms under paragraphs (3)(B) and 
(4)(A) of this subsection. 
‘‘(iii) LACK OF NOTIFICATION BY THE 
STATE.—If a State does not notify the 
Secretary pursuant to clause (i), the Sec-
retary shall— 
‘‘(I) permit residents of that 
State to complete simplified applica-
tion forms under paragraphs (3)(B) 
and (4)(A) of this subsection; and 
‘‘(II) not require any resident of 
that State to complete any non-
financial data previously required by 
that State under this section. 
‘‘(7) CHARGES
TO
STUDENTS
AND
PARENTS 
FOR USE OF FORMS PROHIBITED.— 
‘‘(A) FEES PROHIBITED.—The FAFSA, in 
whatever form (including the EZ FAFSA, 
paper, electronic, simplified, or reapplication), 
shall be produced, distributed, and processed by 
the Secretary and no parent or student shall be
453 
•HR 4137 EH2S 
charged a fee for the collection, processing, or 
delivery of financial aid through the use of the 
FAFSA. The need and eligibility of a student 
for financial assistance under parts A through 
E of this title (other than under subpart 4 of 
part A) may only be determined by using the 
FAFSA developed by the Secretary pursuant to 
this subsection. No student may receive assist-
ance under parts A through E of this title 
(other than under subpart 4 of part A), except 
by use of the FAFSA developed by the Sec-
retary pursuant to this subsection. No data col-
lected on a form for which a fee is charged shall 
be used to complete the FAFSA. 
‘‘(B) NOTICE.—Any entity that provides to 
students and parents, or charges students or 
parents for, any value-added services with re-
spect to or in connection with the FAFSA, such 
as completion of the FAFSA, submission of the 
FAFSA, or tracking of the FAFSA for a stu-
dent, shall provide to students and parents 
clear and conspicuous notice that— 
‘‘(i) the FAFSA is a free Federal stu-
dent aid application;
454 
•HR 4137 EH2S 
‘‘(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 October 
15 of the year prior to the student’s planned year 
of enrollment.’’; 
(2) by adding at the end of subsection (a) the 
following paragraph: 
‘‘(13) EARLY APPLICATION AND AWARD DEM-
ONSTRATION PROGRAM.— 
‘‘(A) PROGRAM REQUIRED.—The Secretary 
shall, no later than two years after the date of 
the enactment of the College Opportunity and 
Affordability Act of 2008, implement an early 
application demonstration program enabling de-
pendent students to—
455 
•HR 4137 EH2S 
‘‘(i) complete applications under this 
subsection in such students’ junior year of 
secondary school, or in the academic year 
that is 2 years prior to such students’ in-
tended year of enrollment at an institution 
of higher education; 
‘‘(ii) receive an estimate of such stu-
dents’ financial aid awards; 
‘‘(iii) update, in the year prior to such 
students’ planned year of enrollment, the 
information contained in an application 
submitted under clause (i), using the proc-
ess described in paragraph (5) to deter-
mine such students’ final financial aid 
awards; and 
‘‘(iv) receive final financial aid awards 
based on updated information described in 
clause (iii). 
‘‘(B) PURPOSE
AND
OBJECTIVES.—The 
purpose of the demonstration program under 
this paragraph shall be to measure the benefits, 
in terms of student aspirations and plans to at-
tend college, and the adverse effects, in terms 
of program costs, integrity, distribution, and 
delivery of aid under this title, of implementing
456 
•HR 4137 EH2S 
an early application system for all dependent 
students that allows dependent students to 
apply for financial aid using information from 
the year prior to the year prior to enrollment. 
Additional objectives associated with implemen-
tation of the demonstration program are the 
following: 
‘‘(i) Measure the feasibility of ena-
bling dependent students to apply for Fed-
eral, State, and institutional financial aid 
in their junior year of high school, using 
information from the year prior to the year 
prior to enrollment, by completing any of 
the application forms under this sub-
section. 
‘‘(ii) Identify whether receiving final 
financial aid awards no later than the fall 
of the senior year provides students with 
additional time to compete for the limited 
resources available for State and institu-
tional financial aid and positively impacts 
the college aspirations and plans of these 
students.
457 
•HR 4137 EH2S 
‘‘(iii) Measure the impact of using in-
come information from the years prior to 
enrollment on— 
‘‘(I) eligibility for financial aid 
under this title and for other State 
and institutional aid; and 
‘‘(II) the cost of financial aid 
programs under this title. 
‘‘(iv) Effectively evaluate the benefits 
and adverse effects of the demonstration 
program on program costs, integrity, dis-
tribution, and delivery of aid. 
‘‘(C) PARTICIPANTS.—The Secretary shall 
select States and institutions within those 
States to participate in the demonstration pro-
gram under this paragraph that are partici-
pating in the programs under this title and that 
are willing to make final financial aid awards to 
students based on their application information 
from the year prior to the year prior to enroll-
ment. The Secretary shall also select as partici-
pants in the demonstration program secondary 
schools and dependent students that are located 
in the participating States.
458 
•HR 4137 EH2S 
‘‘(D) APPLICATION
PROCESS.—The Sec-
retary shall insure that the following provisions 
are included in the demonstration program: 
‘‘(i) Participating States and institu-
tions shall— 
‘‘(I) encourage participating stu-
dents to apply for estimates of finan-
cial aid awards as provided under this 
title in such students’ junior year of 
secondary school, or in the academic 
year that is 2 years prior to such stu-
dents’ intended year of enrollment at 
an institution of higher education, 
using the most recent information 
available; and 
‘‘(II) make final financial aid 
awards 
to 
participating 
students 
based on the updated information con-
tained on a form submitted using the 
process described in paragraph (5). 
‘‘(ii) Financial aid administrators at 
participating institutions shall be allowed 
to use their discretion in awarding finan-
cial aid to participating students, as out-
459 
•HR 4137 EH2S 
lined under section 479A and section 
480(d)(7). 
‘‘(E) EVALUATION.—The Secretary shall 
conduct a rigorous evaluation of this dem-
onstration program in order to measure its ben-
efits and adverse effects as indicated under sub-
paragraph (A). 
‘‘(F) OUTREACH.—The Secretary shall 
make appropriate efforts in order to notify 
States of the demonstration program under this 
paragraph. Upon determination of participating 
States, the Secretary shall continue to make ef-
forts to notify institutions and dependent stu-
dents within participating States of the oppor-
tunity to participate in the demonstration pro-
gram and of the participation requirements. 
‘‘(G) CONSULTATION.—The Secretary shall 
consult with the Advisory Committee on Stu-
dent Financial Assistance, established under 
section 491, on the design and implementation 
of the demonstration program and on the eval-
uation described in subparagraph (E).’’; 
(3) by striking subsection (b); and 
(4) by redesignating subsections (c), (d), and 
(e) as subsections (b), (c), and (d), respectively.
460 
•HR 4137 EH2S 
(b) MASTER CALENDAR.—Section 482(a)(1) (20 
U.S.C. 1089(a)(1)) is amended by striking subparagraphs 
(B) and (C) and inserting the following: 
‘‘(B) by March 1: proposed modifications, 
updates, and notices pursuant to sections 478 
and 483(a)(6) published in the Federal Reg-
ister; 
‘‘(C) by June 1: final modifications, up-
dates, and notices pursuant to sections 478 and 
483(a)(6) published in the Federal Register;’’. 
(c) MODEL INSTITUTION FINANCIAL AID OFFER 
FORM.— 
(1) REPORT AND MODEL FORMAT.—Not later 
than 1 year after the date of enactment of the Col-
lege Opportunity and Affordability Act of 2008, the 
Secretary shall— 
(A) prepare a report on the adequacy of 
the financial aid offer forms provided by insti-
tutions of higher education to students and the 
parents of such students, after consulting 
with— 
(i) students; 
(ii) parents of students; 
(iii) representatives of institutions of 
higher education (including financial aid
462 
•HR 4137 EH2S 
cluding the actual or estimated costs included 
in the cost of attendance for such year for each 
of the following: 
(i) Tuition and fees. 
(ii) Room and board costs. 
(iii) Books and supplies. 
(iv) Transportation. 
(B) The amount of financial aid that the 
student does not have to repay, such as scholar-
ships and grants, offered to the student for 
such year. 
(C) The conditions under which the finan-
cial aid described in subparagraph (B) is renew-
able each year. 
(D) The amount of work-study assistance 
offered to the student for such year, and the 
conditions under which the student has to fulfill 
the work-study assistance. 
(E) The types and amounts of loans under 
part B, D, or E of title IV for which the stu-
dent is eligible for such year, and the interest 
rate, loan term, monthly repayment amount, 
and total repayment amount of each such loan. 
(F) The types and amounts of loans under 
428B or Federal Direct PLUS loans under sec-
463 
•HR 4137 EH2S 
tion 455 for which a parent of the student is 
eligible for such year, and the interest rate, 
loan term, monthly repayment amount, and 
total repayment amount of each such loan. 
(G) The net amount that the student or 
the student’s parent will have to pay to attend 
the institution for such year, which amount 
shall be the difference between— 
(i) the cost of attendance for the stu-
dent for such year; less 
(ii) the amount of financial aid offered 
by the covered institution in the financial 
aid offer form. 
(H) Where a student or the student’s par-
ent can seek additional information regarding 
the financial aid offered. 
(I) Any other information the Secretary 
determines necessary so that students and par-
ents can make informed student loan borrowing 
decisions. 
SEC. 483. INCREASING ACCESS TO TECHNOLOGY. 
Section 483 (20 U.S.C. 1087ss) is further amended 
by adding at the end the following: 
‘‘(e) ADDRESSING THE DIGITAL DIVIDE.—The Sec-
retary shall utilize savings accrued by moving more appli-
464 
•HR 4137 EH2S 
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(b) or (c).’’. 
SEC. 484. SENSE OF THE CONGRESS. 
It is the sense of the Congress that— 
(1) in order to simplify the Free Application for 
Federal Student Aid (FAFSA), which serves as an 
entry point for the scholarships, grants, loans, and 
work-study assistance that make it possible for mil-
lions of students to attend college, the Secretary of 
Education and the Secretary of the Treasury should 
work together to develop a process by which the De-
partment of Education will, with the aid applicant’s 
permission, draw income information directly from 
the Internal Revenue Service for the purpose of com-
pleting the EZ FAFSA, the FAFSA, and FAFSA 
renewal applications and providing early estimates of 
aid eligibility; and 
(2) this process would— 
(A) ease the burden of reporting income- 
related information for applicants; 
(B) increase the efficiency, accuracy, and 
security of the FAFSA filing process;
465 
•HR 4137 EH2S 
(C) significantly reduce the need for fur-
ther verification by the Department of Edu-
cation, institutions, and applicants; and 
(D) protect the security, privacy, and safe-
ty of all data used in the FAFSA filing process. 
SEC. 485. STUDENT ELIGIBILITY. 
(a) AMENDMENTS.—Section 484 (20 U.S.C. 1091) is 
amended— 
(1) in subsection (a)— 
(A) in paragraph (4)(B), by striking ‘‘the 
Republic 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’’; 
(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, 2009, for assistance under subpart 1 of part 
A if the student is otherwise qualified and—
466 
•HR 4137 EH2S 
‘‘(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.’’; 
(3) by striking subsection (l) and inserting the 
following: 
‘‘(l) COURSES OFFERED THROUGH DISTANCE EDU-
CATION.— 
‘‘(1) 
RELATION
TO
CORRESPONDENCE 
COURSES.— 
‘‘(A) IN GENERAL.—A student enrolled in 
a course of instruction at an institution of high-
er education that is offered principally through 
distance education and leads to a recognized 
certificate, or associate, baccalaureate, or grad-
uate degree, conferred by such institution, shall 
not be considered to be enrolled in correspond-
ence courses. 
‘‘(B) EXCEPTION.—An institution of high-
er education referred to in subparagraph (A) 
shall not include an institution or school de-
467 
•HR 4137 EH2S 
scribed in section 3(3)(C) of the Carl D. Per-
kins Career and Technical Education Act of 
2006. 
‘‘(2) RESTRICTION OR REDUCTIONS OF FINAN-
CIAL AID.—A student’s eligibility to receive grants, 
loans, or work assistance under this title shall be re-
duced if a financial aid officer determines under the 
discretionary authority provided in section 479A 
that distance education results in a substantially re-
duced cost of attendance to such student. 
‘‘(3) SPECIAL RULE.—For award years prior to 
July 1, 2008, the Secretary shall not take any com-
pliance, disallowance, penalty, or other action 
against a student or an eligible institution when 
such action arises out of such institution’s prior 
award of student assistance under this title if the in-
stitution demonstrates to the satisfaction of the Sec-
retary that its course of instruction would have been 
in conformance with the requirements of this sub-
section.’’; 
(4) in subsection (r)(2)— 
(A) in subparagraph (A), by striking ‘‘or’’ 
at the end of clause (ii); 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and
470 
•HR 4137 EH2S 
‘‘(t) DATA ANALYSIS ON ACCESS TO FEDERAL STU-
DENT AID FOR CERTAIN POPULATIONS.— 
‘‘(1) DEVELOPMENT OF THE SYSTEM.—Within 
one year of enactment of the College Opportunity 
and Affordability Act of 2008, the Secretary shall, 
in consultation with the Central Processing System, 
analyze data from the FAFSA containing informa-
tion regarding the number, characteristics, and cir-
cumstances of students denied Federal student aid 
based on a drug conviction while receiving Federal 
aid. 
‘‘(2) RESULTS
FROM
ANALYSIS.—The results 
from the analysis of such information shall be made 
available on a continuous basis via the Department 
of Education website and the Digest of Education 
and Statistics. 
‘‘(3) DATA
UPDATING.—The data analyzed 
under this subsection shall be updated at the begin-
ning of each award year and at least one additional 
time during such award year. 
‘‘(4) REPORT
TO
CONGRESS.—The Secretary 
shall prepare and submit to the authorizing commit-
tees of the Congress, in each fiscal year, a report de-
scribing the results obtained by the establishment
471 
•HR 4137 EH2S 
and operation of the data system authorized by this 
subsection.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take affect on July 1, 2009. 
SEC. 486. ASSESSMENT OF COSTS AND OTHER CHARGES. 
Section 484A(b) (20 U.S.C. 1091a(b)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(1); 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) in collecting any obligation arising from a 
loan made under part E of this title, an institution 
of higher education that has an agreement with the 
Secretary pursuant to section 463(a) shall not be 
subject to a defense raised by any borrower based on 
a claim of infancy.’’. 
SEC. 
487. 
READMISSION 
REQUIREMENTS 
FOR 
SERVICEMEMBERS. 
Section 484B(a)(2) (20 U.S.C. 1091b(a)(2)) is 
amended by adding at the end the following new subpara-
graph:
472 
•HR 4137 EH2S 
‘‘(C) READMISSION
REQUIREMENTS
FOR 
SERVICEMEMBERS.—Any institution of higher 
education that requires any student— 
‘‘(i) who is a member of the Armed 
Forces of the United States, or a member 
of such Armed Forces in a retired status, 
including members of the National Guard 
or other reserve component, 
‘‘(ii) who is on active duty, or is called 
or ordered to active duty (as defined in 
section 481(d)), and 
‘‘(iii) whose attendance at such insti-
tution is interrupted by such active duty, 
to apply for readmission to such institution of 
higher education after the conclusion of such 
active duty shall submit to the Secretary a 
statement justifying such requirement.’’. 
SEC. 488. INSTITUTIONAL AND FINANCIAL ASSISTANCE IN-
FORMATION FOR STUDENTS. 
(a) DISCLOSURE OF POLICIES.—Section 485(a) (20 
U.S.C. 1092(a)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (G), by striking ‘‘pro-
gram, and’’;
473 
•HR 4137 EH2S 
(B) by striking ‘‘and’’ at the end of sub-
paragraph (N); 
(C) by striking the period at the end of 
subparagraph (O) and inserting a semicolon; 
and 
(D) by adding at the end the following new 
subparagraphs: 
‘‘(P) institutional policies and sanctions re-
lated to copyright infringement, including— 
‘‘(i) an annual disclosure that explic-
itly informs students that unauthorized 
distribution of copyrighted material, in-
cluding unauthorized peer-to-peer file shar-
ing, may subject the students to civil and 
criminal liabilities; 
‘‘(ii) a summary of the penalties for 
violation of Federal copyright laws; 
‘‘(iii) a description of the institution’s 
policies with respect to unauthorized peer- 
to-peer file sharing, including disciplinary 
actions that are taken against students 
who engage in unauthorized distribution of 
copyrighted materials using the institu-
tion’s information technology system; and
474 
•HR 4137 EH2S 
‘‘(iv) a description of actions that the 
institution takes to prevent and detect un-
authorized distribution of copyrighted ma-
terial on the institution’s information tech-
nology system; and 
‘‘(Q) 
institutional 
policies 
regarding 
meningoccal vaccinations which may include of-
fering the vaccinations through the institution 
at a cost to the student.’’; and 
(2) by amending paragraph (4) to read as fol-
lows: 
‘‘(4) For purposes of this section, institutions 
may— 
‘‘(A) exclude from the information dis-
closed in accordance with subparagraph (L) of 
paragraph (1) the completion or graduation 
rates of students who leave school to serve in 
the Armed Forces, on official church missions, 
or with a recognized foreign aid service of the 
Federal Government; or 
‘‘(B) in cases in which the students de-
scribed in subparagraph (A) represent 20 per-
cent or more of the certificate- or degree-seek-
ing, full-time, undergraduate students at an in-
stitution, the institution may recalculate the
475 
•HR 4137 EH2S 
completion or graduation rates of such students 
by excluding from the calculation described in 
paragraph (3) the time period during which 
such students were not enrolled due to the serv-
ice described in subparagraph (A) of this para-
graph.’’. 
(b) 
CRIMINAL
OFFENSES
REPORTED.—Section 
485(f)(1) (20 U.S.C. 1092(f)(1)) is amended— 
(1) in the matter preceding subparagraph (A), 
by inserting ‘‘, other than a foreign institution of 
higher education,’’ after ‘‘under this title’’; 
(2) in subparagraph (C), by striking clauses (i) 
and (ii) and inserting the following: 
‘‘(i) the law enforcement authority of 
campus security personnel; 
‘‘(ii) the working relationship of cam-
pus security personnel with State and local 
law enforcement agencies, including wheth-
er or not the institution has a written 
agreement, such as a memorandum of un-
derstanding, with such agencies; 
‘‘(iii) the institution’s plan, which 
shall address coordination with State and 
local law enforcement agencies, for the in-
vestigation of—
476 
•HR 4137 EH2S 
‘‘(I) any felony described in sub-
paragraph (F) of this paragraph oc-
curring in the areas described in sub-
paragraphs (A) through (D) of para-
graph (12) of this subsection; and 
‘‘(II) a report of a missing stu-
dent; and 
‘‘(iv) policies which encourage accu-
rate and prompt reporting of all crimes to 
the campus police and the appropriate po-
lice agencies;’’; 
(3) in subparagraph (F)(ii), by inserting after 
‘‘through (VIII) of clause (I)’’ the following: ‘‘, and 
for larceny-theft, simple assault, intimidation, and 
destruction, damage, or vandalism of property,’’; and 
(4) by adding at the end the following new sub-
paragraph: 
‘‘(J) A statement of current campus poli-
cies regarding immediate emergency response 
and evacuation procedures, including the use of 
electronic and cellular communication (if appro-
priate), which shall include procedures— 
‘‘(i) to notify the campus community 
in not more than 30 minutes in the event 
of a significant emergency or dangerous
477 
•HR 4137 EH2S 
situation, involving an immediate threat to 
the health or safety of students or staff, 
occurring on the campus, in or on noncam-
pus buildings or property, and on public 
property; 
‘‘(ii) to publicize emergency response 
and evacuation procedures on an annual 
basis in a manner designed to reach stu-
dents and staff; and 
‘‘(iii) to test emergency response and 
evacuation 
procedures 
on 
an 
annual 
basis.’’. 
(c) ADDITIONAL AMENDMENT.—Section 485(f) is 
further amended— 
(1) by redesignating paragraph (15) as para-
graph (18); and 
(2) by inserting after paragraph (14) the fol-
lowing: 
‘‘(15) COMPLIANCE
REPORT.—The Secretary 
shall annually report to the authorizing committees 
regarding compliance with this subsection by institu-
tions of higher education, including an up-to-date re-
port on the Secretary’s monitoring of such compli-
ance.
478 
•HR 4137 EH2S 
‘‘(16) BEST
PRACTICES.—The Secretary may 
seek the advice and counsel of the Attorney General 
concerning the development, and dissemination to 
institutions of higher education, of best practices in-
formation about campus safety and emergencies. 
‘‘(17) RETALIATION PROHIBITED.—No partici-
pating institution or officer, employee, or agent of 
the institution shall intimidate, threaten, coerce, or 
otherwise discriminate against any individual for the 
purpose of interfering with the implementation of 
any provision of this subsection, or any rights or 
privileges accorded under this subsection, or because 
the individual has complained, testified, assisted, or 
otherwise participated in any aspect of an investiga-
tion, proceeding, or hearing.’’. 
(d) ADDITIONAL REQUIREMENTS.—Section 485 (20 
U.S.C. 1092) is amended by adding at the end the fol-
lowing new subsections: 
‘‘(h) TRANSFER OF CREDIT POLICIES.— 
‘‘(1) DISCLOSURE.—Each institution of higher 
education participating in any program under this 
title shall publicly disclose in a readable and com-
prehensible manner the transfer of credit policies es-
tablished by the institution which shall include a
479 
•HR 4137 EH2S 
statement of the institution’s current transfer of 
credit policies that includes, at a minimum— 
‘‘(A) any established criteria the institution 
uses regarding the transfer of credit earned at 
another institution of higher education; and 
‘‘(B) a list of institutions of higher edu-
cation with which the institution has established 
an articulation agreement. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to— 
‘‘(A) authorize the Secretary or the Na-
tional Advisory Committee on Institutional 
Quality and Integrity to require particular poli-
cies, procedures, or practices by institutions of 
higher education with respect to transfer of 
credit; 
‘‘(B) authorize an officer or employee of 
the Department to exercise any direction, su-
pervision, or control over the curriculum, pro-
gram of instruction, administration, or per-
sonnel of any institution of higher education, or 
over any accrediting agency or association; 
‘‘(C) limit the application of the General 
Education Provisions Act; or
480 
•HR 4137 EH2S 
‘‘(D) create any legally enforceable right 
on the part of a student to require an institu-
tion of higher education to accept a transfer of 
credit from another institution. 
‘‘(i) DISCLOSURE OF FIRE SAFETY STANDARDS AND 
MEASURES.— 
‘‘(1) ANNUAL FIRE SAFETY REPORTS ON STU-
DENT
HOUSING
REQUIRED.—Each eligible institu-
tion participating in any program under this title 
that maintains on-campus student housing facilities 
shall, on an annual basis, publish a fire safety re-
port, which shall contain information with respect to 
the campus fire safety practices and standards of 
that institution, including— 
‘‘(A) statistics concerning the following in 
each on-campus student housing facility during 
the most recent calendar years for which data 
are available: 
‘‘(i) the number of fires and the cause 
of each fire; 
‘‘(ii) the number of injuries related to 
a fire that result in treatment at a medical 
facility; 
‘‘(iii) the number of deaths related to 
a fire; and
481 
•HR 4137 EH2S 
‘‘(iv) the value of property damage 
caused by a fire; 
‘‘(B) a description of each on-campus stu-
dent housing facility fire safety system, includ-
ing the fire sprinkler system; 
‘‘(C) the number of regular mandatory su-
pervised fire drills; 
‘‘(D) policies or rules on portable electrical 
appliances, smoking, and open flames (such as 
candles), procedures for evacuation, and policies 
regarding fire safety education and training 
programs provided to students, faculty, and 
staff; and 
‘‘(E) plans for future improvements in fire 
safety, if determined necessary by such institu-
tion. 
‘‘(2) REPORT TO THE SECRETARY.—Each eligi-
ble institution participating in any program under 
this title shall, on an annual basis submit to the Sec-
retary a copy of the statistics required to be made 
available under subparagraph (A). 
‘‘(3) CURRENT INFORMATION TO CAMPUS COM-
MUNITY.—Each institution participating in any pro-
gram under this title shall—
482 
•HR 4137 EH2S 
‘‘(A) make, keep, and maintain a log, re-
cording all fires in on-campus student housing 
facilities, including the nature, date, time, and 
general location of each fire; and 
‘‘(B) make annual reports to the campus 
community on such fires. 
‘‘(4) RESPONSIBILITIES OF THE SECRETARY.— 
The Secretary shall— 
‘‘(A) make such statistics submitted to the 
Secretary available to the public; and 
‘‘(B) in coordination with nationally recog-
nized fire organizations and representatives of 
institutions of higher education, representatives 
of associations of institutions of higher edu-
cation, and other organizations that represent 
and house a significant number of students— 
‘‘(i) identify exemplary fire safety 
policies, procedures, programs, and prac-
tices; 
‘‘(ii) disseminate information to the 
Administrator of the United States Fire 
Administration; 
‘‘(iii) make available to the public in-
formation concerning those policies, proce-
dures, programs, and practices that have
483 
•HR 4137 EH2S 
proven effective in the reduction of fires; 
and 
‘‘(iv) develop a protocol for institu-
tions to review the status of their fire safe-
ty systems. 
‘‘(5) RULES
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to— 
‘‘(A) authorize the Secretary to require 
particular policies, procedures, programs, or 
practices by institutions of higher education 
with respect to fire safety, other than with re-
spect to the collection, reporting, and dissemi-
nation of information required by this sub-
section; 
‘‘(B) affect the Family Educational Rights 
and Privacy Act of 1974 or the regulations 
issued under section 264 of the Health Insur-
ance Portability and Accountability Act of 1996 
(42 U.S.C. 1320d–2 note); 
‘‘(C) create a cause of action against any 
institution of higher education or any employee 
of such an institution for any civil liability; or 
‘‘(D) establish any standard of care. 
‘‘(6) COMPLIANCE
REPORT.—The Secretary 
shall annually report to the authorizing committees
484 
•HR 4137 EH2S 
regarding compliance with this subsection by institu-
tions of higher education, including an up-to-date re-
port on the Secretary’s monitoring of such compli-
ance. 
‘‘(7) EVIDENCE.—Notwithstanding any other 
provision of law, evidence regarding compliance or 
noncompliance with this subsection shall not be ad-
missible as evidence in any proceeding of any court, 
agency, board, or other entity, except with respect to 
an action to enforce this subsection. 
‘‘(8) RETALIATION
PROHIBITED.—No partici-
pating institution or officer, employee, or agent of 
the institution shall intimidate, threaten, coerce, or 
otherwise discriminate against any individual for the 
purpose of interfering with the implementation of 
any provision of this subsection, or any rights or 
privileges accorded under this subsection, or because 
the individual has complained, testified, assisted, or 
otherwise participated in any aspect of an investiga-
tion, proceeding, or hearing. 
‘‘(j) MISSING PERSON PROCEDURES.— 
‘‘(1) FORM AND PROTOCOLS.—Each institution 
of higher education participating in any program 
under this title shall—
485 
•HR 4137 EH2S 
‘‘(A) include on its form for registration or 
enrollment of students an item in which the 
student can elect to identify an individual to be 
notified and police to be notified by the univer-
sity within 24 hours of when a student is re-
ported missing to the university, and 
‘‘(B) establish protocols for missing stu-
dents that— 
‘‘(i) require any missing person report 
relating to any student be referred to the 
institution’s police or campus security de-
partment; and 
‘‘(ii) if, on investigation of the report, 
such department determines that the miss-
ing person has been missing for more than 
24 hours, require— 
‘‘(I) such department to refer to 
the item on the registration document 
required under subparagraph (A) and 
contact the individual named by the 
student in such item; and 
‘‘(II) if the student is under 18 
years of age, the institution of higher 
education to automatically contact the 
parents of such student.
486 
•HR 4137 EH2S 
‘‘(2) WAIVER.—The item required by paragraph 
(1)(A) shall explicitly and prominently state that by 
identifying an individual to contact in the case of 
disappearance, the student waives any right to sue 
based on Federal or State privacy law in the event 
that a missing persons notification is made to the in-
dividual named by such student in such item. 
‘‘(3) ADDITIONAL
REMEDIES
PERMITTED.— 
Nothing in this subsection shall be construed to pre-
vent or discourage an institution of higher education 
from taking additional measures with respect to 
missing students beyond those required by this sub-
section. 
‘‘(k) NOTICE
TO STUDENTS CONCERNING PEN-
ALTIES FOR DRUG VIOLATIONS.— 
‘‘(1) NOTICE UPON ENROLLMENT.—Each insti-
tution of higher education shall provide to each stu-
dent, upon enrollment, a separate, clear, and con-
spicuous written notice that advises the student of 
the penalties under section 484(r). 
‘‘(2) NOTICE AFTER LOSS OF ELIGIBILITY.— 
Within two weeks of notification by the Secretary 
that a student has lost eligibility under section 
484(r) for any grant, loan, or work assistance, an 
institution of higher education shall provide to each
487 
•HR 4137 EH2S 
such student affected by the penalties listed under 
484(r)(1) a separate, clear, and conspicuous written 
notice that notifies the student of the loss of eligi-
bility and advises the student of the ways in which 
the student can regain eligibility under section 
484(r)(2).’’. 
(e) DISCLOSURE OF ATHLETICALLY RELATED GRAD-
UATION
RATES.—Section 
485(e)(3) 
(20 
U.S.C. 
1092(e)(3)) is amended to read as follows: 
‘‘(3) For purposes of this subsection, institu-
tions may— 
‘‘(A) exclude from the reporting require-
ments under paragraphs (1) and (2) the com-
pletion or graduation rates of students and stu-
dent athletes who leave school to serve in the 
Armed Forces, on official church missions, or 
with a recognized foreign aid service of the Fed-
eral Government; or 
‘‘(B) in cases in which the students de-
scribed in subparagraph (A) represent 20 per-
cent or more of the certificate- or degree-seek-
ing, full-time, undergraduate students at an in-
stitution, the institution may calculate the com-
pletion or graduation rates of such students by 
excluding from the calculations described in
488 
•HR 4137 EH2S 
paragraph (1) the time period during which 
such students were not enrolled due to the serv-
ice described in subparagraph (A) of this para-
graph.’’. 
SEC. 489. ARTICULATION AGREEMENTS. 
Part G of title IV is amended by inserting after sec-
tion 486 (20 U.S.C. 1093) the following new section: 
‘‘SEC. 486A. ARTICULATION AGREEMENTS. 
‘‘(a) PROGRAM
TO
ENCOURAGE
ARTICULATION 
AGREEMENTS.— 
‘‘(1) PROGRAM ESTABLISHED.—The Secretary 
shall carry out a program for States, in cooperation 
with public institutions of higher education, to de-
velop, enhance, and implement comprehensive articu-
lation agreements among such institutions in a 
State, and (to the extent practicable) across State 
lines, by 2010. Such articulation agreements shall be 
made widely and publicly available on the websites 
of States and institutions. In developing, enhancing, 
and implementing articulation agreements, States 
and public institutions of higher education may em-
ploy strategies, where applicable, including— 
‘‘(A) common course numbering; 
‘‘(B) a general education core curriculum;
489 
•HR 4137 EH2S 
‘‘(C) 
management 
systems 
regarding 
course equivalency, transfer of credit, and ar-
ticulation; and 
‘‘(D) other strategies identified by the Sec-
retary. 
‘‘(2) TECHNICAL ASSISTANCE PROVIDED.—The 
Secretary shall provide technical assistance to States 
and institutions of higher education for the purposes 
of developing and implementing articulation agree-
ments in accordance with this subsection. 
‘‘(3) 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 articulation agreements. 
‘‘(b) STUDY REQUIRED.—The Secretary shall con-
duct a study to review the articulation agreements at 
State-based college and university systems, including jun-
ior or community colleges, as well as those at other institu-
tions of higher education. Such study shall consider— 
‘‘(1) the extent to which States and institutions 
have developed and implemented articulation agree-
ments; 
‘‘(2) with respect to the articulation agreements 
developed—
490 
•HR 4137 EH2S 
‘‘(A) the number and types of institutions 
participating the programs offered; 
‘‘(B) the cost-savings to the participating 
institutions and to the students; 
‘‘(C) what strategies are being employed, 
including common course numbering, general 
education core curriculum, and management 
systems; 
‘‘(D) the effective use of technologies to 
contain costs, maintain quality of instruction, 
and inform students; and 
‘‘(E) a description of the students to whom 
the articulation agreements are offered and, to 
the extent practicable, a description of the stu-
dents who take advantage of the articulation 
agreements; 
‘‘(3) best practices and innovative strategies 
employed to implement effective articulation agree-
ments; and 
‘‘(4) barriers to the implementation of articula-
tion agreements, including technological and infor-
mational barriers. 
‘‘(c) REPORT.—The Secretary shall submit to the au-
thorizing committees an interim report on the study re-
quired by this section not later than 2 years after the date
491 
•HR 4137 EH2S 
of enactment of the College Opportunity and Affordability 
Act of 2008 and a final report on such study not later 
than January 1, 2013. 
‘‘(d) DEFINITION.—In this section, the term ‘articu-
lation agreement’ means an agreement between institu-
tions of higher education that specifies the acceptability 
of courses in transfer toward meeting specific degree or 
program requirements.’’. 
SEC. 490. PROGRAM PARTICIPATION AGREEMENTS. 
(a) ADDITIONAL REQUIREMENTS.—Section 487(a) 
(20 U.S.C. 1094(a)) is amended— 
(1) by adding at the end of paragraph (23) the 
following new subparagraph: 
‘‘(D) The institution shall be considered in com-
pliance with the requirements of subparagraph (A) 
for each student to whom the institution electroni-
cally transmits a message containing a voter reg-
istration 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 exclusively to voter registration.’’; and 
(2) by adding at the end the following new 
paragraphs:
492 
•HR 4137 EH2S 
‘‘(24)(A) A covered institution that has entered 
into a preferred lender arrangement will compile, 
maintain, and make available for students attending 
the institution (or the parents of such students) a 
list, in print or any other medium, of the specific 
lenders for educational loans that the institution rec-
ommends, promotes, or endorses in accordance with 
such preferred lender arrangement. In compiling, 
maintaining, and making available such list, the in-
stitution will— 
‘‘(i) clearly and fully disclose on such list— 
‘‘(I) no less than the information re-
quired to be disclosed in the model disclo-
sure form, or updated model disclosure 
form, required under section 153; 
‘‘(II) why the institution has entered 
into a preferred lender arrangement with 
each listed lender, particularly with respect 
to terms and conditions favorable to the 
borrower; and 
‘‘(III) that the students attending the 
institution (or the parents of such stu-
dents) do not have to borrow from a listed 
lender;
493 
•HR 4137 EH2S 
‘‘(ii) ensure, through the use of the list 
provided by the Secretary under subparagraph 
(B), that— 
‘‘(I) there are not less than 3 lenders 
of loans made under part B that are not 
affiliates of each other included on such 
list and, if the institution recommends, 
promotes, or endorses private educational 
loans, there are not less than 2 lenders of 
private educational loans that are not af-
filiates of each other included on such list; 
‘‘(II) the list under this subpara-
graph— 
‘‘(aa) specifically indicates, for 
each listed lender, whether the lender 
is or is not an affiliate of each other 
lender on the list; and 
‘‘(bb) if a lender is an affiliate of 
another lender on the list, describes 
the details of such affiliation; 
‘‘(iii) prominently disclose the method and 
criteria used by the institution in selecting lend-
ers with which to enter into preferred lender ar-
rangements to ensure that such lenders are se-
494 
•HR 4137 EH2S 
lected on the basis of the benefits provided to 
borrowers, including— 
‘‘(I) highly competitive interest rates, 
terms, or conditions of Federal and private 
educational loans; 
‘‘(II) high-quality servicing for such 
loans; or 
‘‘(III) additional benefits beyond the 
standard terms and conditions for such 
loans; 
‘‘(iv) exercise a duty of care and a duty of 
loyalty to compile the list under this subpara-
graph without prejudice and for the sole benefit 
of the students attending the institution (or the 
parents of such students); 
‘‘(v) not deny or otherwise impede the bor-
rower’s choice of a lender or cause unnecessary 
delays in loan certification under this title for 
those borrowers who choose a lender that has 
not been recommended, promoted, or endorsed 
by the institution; and 
‘‘(vi) comply with such other requirements 
as the Secretary may prescribe by regulation. 
‘‘(B) The Secretary shall maintain and update 
a list of lender affiliates of all eligible lenders, and
495 
•HR 4137 EH2S 
shall provide such list to the institutions for use in 
carrying out subparagraph (A). 
‘‘(C) For the purposes of subparagraph (A)— 
‘‘(i) the term ‘affiliate’ means a person 
that controls, is controlled by, or is under com-
mon control with another person; 
‘‘(ii) a person controls, is controlled by, or 
is under common control with another person 
if— 
‘‘(I) the person directly or indirectly, 
or acting through 1 or more others, owns, 
controls, or has the power to vote 5 per-
cent or more of any class of voting securi-
ties of such other person; 
‘‘(II) the person controls, in any man-
ner, the election of a majority of the direc-
tors or trustees of such other person; or 
‘‘(III) the Secretary determines (after 
notice and opportunity for a hearing) that 
the person directly or indirectly exercises a 
controlling interest over the management 
or policies of such other person; 
‘‘(iii) the term ‘preferred lender arrange-
ment’ has the meaning provided in section 151; 
and
497 
•HR 4137 EH2S 
or a nonforcible sex offense, the final results of any 
disciplinary proceeding conducted by such institution 
against a student 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. 
(c) 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: 
‘‘(27) A proprietary institution of higher edu-
cation (as defined in section 102(b)) will, as cal-
culated in accordance with subsection (f)(1) of this 
section, 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) of this section.’’.
498 
•HR 4137 EH2S 
(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)(27), a proprietary institution of higher 
education shall— 
‘‘(A) use the cash basis of accounting; 
‘‘(B) consider as revenue only those funds 
generated by the institution from— 
‘‘(i) tuition, fees, and other institu-
tional charges for students enrolled in pro-
grams eligible for assistance under this 
title; 
‘‘(ii) activities conducted by the insti-
tution, to the extent not included in tui-
tion, fees, and other institutional charges, 
that are necessary for the education or 
training of its students who are enrolled in 
programs eligible for assistance under this 
title, if such activities are— 
‘‘(I) conducted on campus or at a 
facility under the control of the insti-
tution;
499 
•HR 4137 EH2S 
‘‘(II) performed under the super-
vision of a member of the institution’s 
faculty; and 
‘‘(III) required to be performed 
by all students in a specific edu-
cational program at the institution; 
and 
‘‘(iii) funds paid by a student, or on 
behalf of a student by a party other than 
the institution, for an education or training 
program that is not eligible for funds 
under this title, provided that the program 
is approved or licensed by the appropriate 
State agency and is accredited by an ac-
crediting agency recognized by the Sec-
retary; 
‘‘(C) presume that any title IV program 
funds disbursed or delivered to or on behalf of 
a student will be used to pay the student’s tui-
tion, fees, or other institutional charges, regard-
less of whether the institution credits those 
funds to the student’s account or pays those 
funds directly to the student, except to the ex-
tent that the student’s tuition, fees, or other in-
stitutional charges are satisfied by—
500 
•HR 4137 EH2S 
‘‘(i) grant funds provided by non-Fed-
eral public agencies or private sources 
independent of the institution; 
‘‘(ii) funds provided under a contrac-
tual arrangement with Federal, State, or 
local government agencies for the purpose 
of providing job training to low-income in-
dividuals who are in need of that training; 
or 
‘‘(iii) funds used by a student from 
savings plans for educational expenses es-
tablished by or on behalf of the student 
and which qualify for special tax treatment 
under the Internal Revenue Code of 1986, 
provided that the institution can reason-
able demonstrate such funds were used to 
pay the student’s tuition, fees, or other in-
stitutional charges; 
‘‘(D) include institutional aid as revenue to 
the school only as follows: 
‘‘(i) in the case of loans made by an 
institution, for each of the institution’s fis-
cal years 2009 through 2012, the principal 
amount of loans made by the institution, 
based on the expected interest earned less
501 
•HR 4137 EH2S 
the estimated amount to account for future 
defaults and loan forgiveness accounted for 
on an accrual basis, in accordance with 
Generally Accepted Accounting Principles 
and related standards and guidance, if the 
loans are bona fide as evidenced by en-
forceable promissory notes, are issued at 
intervals related to the institution’s enroll-
ment periods, and are subject to regular 
loan repayments and collections; 
‘‘(ii) in the case of loans made by an 
institution, for the institution’s fiscal year 
2013 and each of the institution’s subse-
quent fiscal years, only the amount of loan 
repayments received during the fiscal year; 
and 
‘‘(iii) in the case of institutional schol-
arships, only those provided by the institu-
tion in the form of monetary aid or tuition 
discounts 
based 
upon 
the 
academic 
achievements or financial need of students, 
disbursed during the fiscal year from an 
established restricted account, and only to 
the extent that funds in that account rep-
resent designated funds from an outside
502 
•HR 4137 EH2S 
source or from income earned on those 
funds; 
‘‘(E) exclude from revenues— 
‘‘(i) the amount of funds it received 
under the Federal Work-Study program, 
unless the institution used those funds to 
pay a student’s institutional charges; 
‘‘(ii) the amount of funds it received 
under the Leveraging Education Assist-
ance Partnership program; 
‘‘(iii) the amount of institutional 
funds it used to match title IV program 
funds; 
‘‘(iv) the amount of title IV program 
funds that must be refunded or returned; 
or 
‘‘(v) the amount charged for books, 
supplies, and equipment unless the institu-
tion includes that amount as tuition, fees, 
or other institutional charges. 
‘‘(2) SANCTIONS.— 
‘‘(A) An institution that fails to meet the 
requirements of subsection (a)(27) for 2 con-
secutive fiscal years shall become ineligible to 
participate in the programs authorized by this
503 
•HR 4137 EH2S 
title. To regain eligibility to participate in the 
programs authorized by this title, an institution 
that loses its eligibility as a sanction under this 
subparagraph must demonstrate compliance 
with all eligibility requirements for at least the 
3 fiscal years following the fiscal year the insti-
tution became ineligible. 
‘‘(B) In addition to such other means of 
enforcing the requirements of this title as may 
be available to the Secretary, if an institution 
fails to meet the requirements of subsection 
(a)(27) in any fiscal year, the Secretary shall 
impose sanctions on the institution, which shall 
include— 
‘‘(i) placing the institution on provi-
sional certification in accordance with sec-
tion 498(h) until the institution dem-
onstrates, to the satisfaction of the Sec-
retary, that it is in compliance with sub-
section (a)(27); 
‘‘(ii) requiring the institution to pro-
vide to the Secretary satisfactory evidence 
of its financial responsibility in accordance 
with section 498(c)(3); and
504 
•HR 4137 EH2S 
‘‘(iii) requiring such other increased 
monitoring and reporting requirements as 
the Secretary determines necessary until 
the institution demonstrates, to the satis-
faction of the Secretary, that it is in com-
pliance with subsection (a)(27). 
‘‘(3) PUBLICATION
ON
COLLEGE
NAVIGATOR 
WEBSITE.—The Secretary shall publicly disclose the 
identity of any institution that fails to meet the re-
quirements of subsection (a)(27) on the College Nav-
igator website. 
‘‘(4) REPORT
TO
CONGRESS.—The Secretary 
shall annually submit to the authorizing committees 
a report that contains, for each institution subject to 
the requirement of subsection (a)(27), the result of 
the calculation of revenue performed by each such 
institution pursuant to such subsection and para-
graph (1) of this subsection.’’. 
(d) COMPUTER DISPOSAL.—Section 487(a) is further 
amended by adding at the end the following new para-
graph: 
‘‘(28)(A) The institution of higher education 
will establish a policy on the disposal or disposition 
(including selling, donating, returning upon lease 
end, or destroying by recycling), of all technology as-
505 
•HR 4137 EH2S 
sets which may have personal and sensitive data of 
students. Such policy may include a forensic scrub 
that ensures total destruction of data on the tech-
nology assets and include a designated for disposal 
or disposition, transfer ownership and liability from 
that institution to State and federally approved recy-
clers or de-manufacturers of such equipment. 
‘‘(B) For purposes of this paragraph, the term 
‘technology assets’ means a computer central proc-
essing unit, monitor, printer, router, server, periph-
eral devices (such as switches, hubs, and systems), 
firewalls, telephones, or other simple network devices 
or single piece of information technology equip-
ment.’’. 
(e) COMMITMENT TO AND NOTICE OF TUITION LEV-
ELS.— 
(1) AMENDMENT.—Section 487(a) is further 
amended by adding at the end the following new 
paragraph: 
‘‘(29)(A) The institution will provide to each 
admitted student considering an undergraduate or 
graduate program— 
‘‘(i) a multi-year tuition and fee schedule; 
or
506 
•HR 4137 EH2S 
‘‘(ii) a single-year tuition and fee schedule, 
and nonbinding, multi-year estimate of net 
costs after all financial aid is awarded, assum-
ing constant family and student income, assets, 
and relevant circumstances. 
‘‘(B) Multi-year schedules and estimates re-
quired by subparagraph (A)— 
‘‘(i) may include a percentage or dollar in-
crease or decrease of any size the institution 
deems appropriate from one year to the next; 
and 
‘‘(ii) shall indicate, on a year-by-year basis, 
costs for the normal duration of the relevant 
student’s undergraduate or graduate program. 
‘‘(C) Institutions that elect a single-year tuition 
and fee schedule under subparagraph (A)(ii) shall 
include with each multi-year estimate the average 
deviation, in percentage terms, between previous 
year estimates and actual net costs for students at 
their institution. 
‘‘(D) The Secretary shall waive the require-
ments of subparagraph (A), and of the commitment 
made therender, if the institution demonstrates to 
the Secretary that the requirements of subparagraph 
(A) are not practicable because of the occurrence of
507 
•HR 4137 EH2S 
one or more events causing the institution severe 
economic distress, dramatic reduction of State or 
Federal aid, or any other circumstance the Secretary 
deems valid.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall be effective on July 1, 2009. 
(f) AUDITS; FINANCIAL RESPONSIBILITY; ENFORCE-
MENT OF STANDARDS.—Section 487(c)(1)(A) (20 U.S.C. 
1094(c)(1)(A)) is amended— 
(1) in clause (i)— 
(A) by striking ‘‘clauses (ii) and (iii)’’ and 
inserting ‘‘clauses (ii), (iii), and (iv)’’; and 
(B) by inserting before the semicolon at 
the end the following: ‘‘, except that the Sec-
retary may modify the requirements of this 
clause with respect to institutions of higher 
education that are foreign institutions, and may 
waive such requirements with respect to a for-
eign institution whose students receive less than 
$500,000 in loans under this title during the 
award year preceding the audit period’’; 
(2) in clause (ii), by striking ‘‘or’’ after the 
semicolon; 
(3) in clause (iii), by inserting ‘‘or’’ after the 
semicolon; and
508 
•HR 4137 EH2S 
(4) by inserting after clause (iii) the following 
new clause: 
‘‘(iv) with respect to an eligible institution 
that is audited under clause (i), and for which 
it is determined through such audit that the 
percentage of students enrolled at the institu-
tion who were accepted for enrollment and 
made eligible for student financial assistance 
under this title by way of section 484(d)(2) ex-
ceeds 5 percent of the total enrollment of the 
institution for such academic year, an addi-
tional review to confirm that the institution is 
in compliance with the regulations prescribed by 
the Secretary under section 484(d);’’. 
(f) INSTITUTIONAL CERTIFICATIONS FOR PRIVATE 
EDUCATIONAL LOANS.—Section 487(a) is further amend-
ed by adding at the end the following new paragraph: 
‘‘(29)(A) The institution will— 
‘‘(i) upon the request of a private edu-
cational lender, acting in connection with 
an application initiated by a consumer for 
a private educational loan, provide certifi-
cation to such private educational lender— 
‘‘(I) that the student who initi-
ated the application for the private
510 
•HR 4137 EH2S 
SEC. 491. REGULATORY RELIEF AND IMPROVEMENT. 
Section 487A(b) (20 U.S.C. 1094a(b)) is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) IN GENERAL.—The Secretary shall con-
tinue the voluntary participation of any experimental 
sites in existence as of July 1, 2007, unless the Sec-
retary determines that such site’s participation has 
not been successful in carrying out the purposes of 
this section. Any activities approved by the Secretary 
prior to such date that have not been successful in 
carrying out the purposes of this section shall be dis-
continued not later than June 30, 2009.’’; 
(2) by striking the matter preceding paragraph 
(2)(A) and inserting the following: 
‘‘(2) REPORT.—The Secretary shall review and 
evaluate the experience of institutions participating 
as experimental sites and shall, on a biennial basis, 
submit a report based on the review and evaluation 
to the authorizing committees. Such report shall in-
clude—’’; and 
(3) in paragraph (3)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘Upon the submission 
of the report required by paragraph (2), 
the’’ and inserting ‘‘The’’; and
511 
•HR 4137 EH2S 
(ii) by inserting ‘‘periodically’’ after 
‘‘authorized to’’; 
(B) by striking subparagraph (B); 
(C) by redesignating subparagraph (C) as 
subparagraph (B); and 
(D) in subparagraph (B) (as redesignated 
by subparagraph (C))— 
(i) by inserting ‘‘, including require-
ments related to the award process and 
disbursement of student financial aid (such 
as innovative delivery systems for modular 
or compressed courses, or other innovative 
systems), verification of student financial 
aid application data, entrance and exit 
interviews, or other management proce-
dures or processes as determined in the ne-
gotiated rulemaking process under section 
492’’ after ‘‘requirements in this title’’; 
(ii) by inserting ‘‘(other than an 
award rule related to an experiment in 
modular or compressed schedules)’’ after 
‘‘award rules’’; and 
(iii) by inserting ‘‘unless the waiver of 
such provisions is authorized by another
512 
•HR 4137 EH2S 
provision under this title’’ before the pe-
riod at the end. 
SEC. 492. TRANSFER OF ALLOTMENTS. 
Section 488 (20 U.S.C. 1095) is amended by striking 
‘‘section 413D.’’ and inserting ‘‘section 413D or 462 (or 
both).’’. 
SEC. 493. ADVISORY COMMITTEE ON STUDENT FINANCIAL 
ASSISTANCE. 
Section 491 (20 U.S.C. 1098) is amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (B), by striking 
‘‘and’’ after the semicolon; 
(B) in subparagraph (C), by striking the 
period at the end and inserting a semicolon; 
and 
(C) by adding at the end the following: 
‘‘(D) to provide knowledge and under-
standing of early intervention programs and 
make recommendations that will result in early 
awareness by low- and moderate-income stu-
dents and families of their eligibility for assist-
ance under this title, and, to the extent prac-
ticable, their eligibility for other forms of State 
and institutional need-based student assistance; 
and
513 
•HR 4137 EH2S 
‘‘(E) to make recommendations that will 
expand and improve partnerships among the 
Federal Government, States, institutions, and 
private entities to increase the awareness and 
total amount of need-based student assistance 
available to low- and moderate-income stu-
dents.’’; 
(2) in subsection (d)— 
(A) in paragraph (6), by striking ‘‘, but 
nothing in this section shall authorize the com-
mittee to perform such studies, surveys, or 
analyses’’; 
(B) in paragraph (8), by striking ‘‘and’’ 
after the semicolon; 
(C) by redesignating paragraph (9) as 
paragraph (10); and 
(D) by inserting after paragraph (8) the 
following: 
‘‘(9) monitor the adequacy of total need-based 
aid available to low- and moderate-income students 
from all sources, assess the implications for access 
and persistence, and report those implications annu-
ally to Congress and the Secretary; and’’; 
(3) in subsection (j)(1)—
514 
•HR 4137 EH2S 
(A) by inserting ‘‘and simplification’’ after 
‘‘delivery processes’’; and 
(B) by striking ‘‘, including the implemen-
tation of a performance-based organization 
within the Department, and report to Congress 
regarding such modernization on not less than 
an annual basis’’; and 
(4) in subsection (k), by striking ‘‘2004’’ and 
inserting ‘‘2011’’. 
SEC. 494. NEGOTIATED RULEMAKING. 
Section 492(b)(1) (20 U.S.C. 1098a(b)(1)) is amend-
ed by striking ‘‘from individuals nominated by groups de-
scribed in subsection (a)(1)’’ and inserting ‘‘from individ-
uals who are nominated by groups described in subsection 
(a)(1) and who have recognized legitimacy as designated 
representatives of major stakeholders, sectors, and con-
stituencies in the higher education community’’. 
SEC. 495. TECHNICAL AMENDMENT. 
Section 493C(b)(1) (20 U.S.C. 1098e(b)(1)) is 
amended by striking ‘‘or is already in default’’. 
SEC. 495A. CAMPUS-BASED DIGITAL THEFT PREVENTION. 
Part G of title IV (20 U.S.C. 1088 et seq.) is further 
amended by adding at the end the following new section:
515 
•HR 4137 EH2S 
‘‘SEC. 494. CAMPUS-BASED DIGITAL THEFT PREVENTION. 
‘‘(a) IN GENERAL.—Each eligible institution partici-
pating in any program under this title shall to the extent 
practicable— 
‘‘(1) make publicly available to their students 
and employees, the policies and procedures related to 
the illegal downloading and distribution of copy-
righted materials required to be disclosed under sec-
tion 485(a)(1)(P); and 
‘‘(2) develop a plan for offering alternatives to 
illegal downloading or peer-to-peer distribution of in-
tellectual property as well as a plan to explore tech-
nology-based deterrents to prevent such illegal activ-
ity. 
‘‘(b) GRANTS.— 
‘‘(1) PROGRAM
AUTHORITY.—The Secretary 
may make grants to institutions of higher education, 
or consortia of such institutions, and enter into con-
tracts with such institutions, consortia, and other or-
ganizations, to develop, implement, operate, improve, 
and disseminate programs of prevention, education, 
and cost-effective technological solutions, to reduce 
and eliminate the illegal downloading and distribu-
tion of intellectual property. Such grants or con-
tracts may also be used for the support of a higher 
education centers that will provide training, tech-
516 
•HR 4137 EH2S 
nical assistance, evaluation, dissemination, and asso-
ciated services and assistance to the higher edu-
cation community as determined by the Secretary 
and institutions of higher education. 
‘‘(2) AWARDS.—Grants and contracts shall be 
awarded under paragraph (1) on a competitive basis. 
‘‘(3) APPLICATIONS.—An institution of higher 
education or a consortium of such institutions that 
desires to receive a grant or contract under para-
graph (1) shall submit an application to the Sec-
retary at such time, in such manner, and containing 
or accompanied by such information as the Sec-
retary may reasonably require by regulation. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to carry out 
this subsection such sums as may be necessary for 
fiscal year 2009 and for each of the 4 succeeding fis-
cal years.’’. 
PART H—PROGRAM INTEGRITY 
SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR AS-
SOCIATION. 
(a) AMENDMENTS.—Section 496 (20 U.S.C. 1099b) 
is amended— 
(1) in subsection (a)— 
(A) in paragraph (4)—
517 
•HR 4137 EH2S 
(i) by striking ‘‘(4) such agency’’ and 
insert ‘‘(4)(A) such agency’’; 
(ii) by inserting ‘‘and’’ after the semi-
colon at the end; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(B) if such agency or association has or seeks 
to include within its scope of recognition the evalua-
tion of the quality of institutions or programs offer-
ing distance education, such agency or association 
shall, in addition to meeting the other requirements 
of this subpart, demonstrate to the Secretary that— 
‘‘(i) the agency or association’s standards 
effectively address the quality of an institution’s 
distance education in the areas identified in 
paragraph (5), except that the agency or asso-
ciation shall not be required to have separate 
standards, procedures or policies for the evalua-
tion of distance education institutions or pro-
grams in order to meet the requirements of this 
subparagraph, nor shall the agency or associa-
tion be required to obtain the approval of the 
Secretary to expand its scope of accreditation to 
include distance education, provided that the
518 
•HR 4137 EH2S 
agency or association notifies the Secretary in 
writing of the change in scope; and 
‘‘(ii) the agency or association requires an 
institution that offers distance education to 
have processes through which the institution es-
tablishes that the student who registers in a 
distance education course or program is the 
same student who participates in and completes 
the program and receives the academic credit;’’; 
(B) in paragraph (5), by amending sub-
paragraph (A) to read as follows: 
‘‘(A) success with respect to student 
achievement in relation the institution’s mis-
sion, which may include different standards for 
different institutions or programs, as estab-
lished by the institution, including, as appro-
priate, consideration of State licensing examina-
tions, consideration of course completion, and 
job placement rates;’’; 
(C) by striking paragraph (6) and insert-
ing the following: 
‘‘(6) such agency or association shall establish 
and apply review procedures throughout the accred-
iting process, including evaluation and withdrawal
519 
•HR 4137 EH2S 
proceedings which comply with due process proce-
dures that provide for— 
‘‘(A) adequate specification of require-
ments, including clear and consistent standards 
for an institution to be accredited, and defi-
ciencies at the institution of higher education or 
program examined; 
‘‘(B) an opportunity for a written response 
by any such institution to be included, prior to 
final action, in the evaluation and withdrawal 
proceedings; 
‘‘(C) upon the written request of an insti-
tution, an opportunity for the institution to ap-
peal any adverse action, including denial, with-
drawal, suspension, or termination of accredita-
tion, at a hearing prior to such action becoming 
final, before an appeals panel that— 
‘‘(i) shall not include current members 
of the agency or association’s underlying 
decision-making body that made the ad-
verse decision; and 
‘‘(ii) is subject to a conflict of interest 
policy; and
520 
•HR 4137 EH2S 
‘‘(D) the right to representation by counsel 
for such an institution during an appeal of the 
adverse action;’’; and 
(D) by striking paragraph (8) and insert-
ing the following: 
‘‘(8) such agency or association shall make 
available to the public and the State licensing or au-
thorizing agency, and submit to the Secretary, a 
summary of agency or association actions, includ-
ing— 
‘‘(A) the award of accreditation or re-
accreditation of an institution; 
‘‘(B) final denial, withdrawal, suspension, 
or termination of accreditation, and any find-
ings made in connection with the action taken, 
together with the official comments of the af-
fected institution; and 
‘‘(C) any other adverse action taken with 
respect to an institution; 
‘‘(9) such agency or association confirms, as a 
part of the agency or association’s review for accred-
itation or reaccreditation, that the institution has 
transfer of credit policies— 
‘‘(A) that are publicly disclosed; and
521 
•HR 4137 EH2S 
‘‘(B) that include a statement of the cri-
teria established by the institution regarding 
the transfer of credit earned at another institu-
tion of higher education; 
‘‘(10) such agency or association reviews and 
takes into consideration the institution’s response in 
any review or determination, and includes in any de-
termination a written statement addressing the insti-
tution’s response and stating the basis for such de-
termination, and a copy of the institution’s response; 
and 
‘‘(11) such agency or association shall not make 
a determination or take adverse action based upon 
an unpublished or undocumented policy, practice, or 
precedent.’’; 
(2) in subsection (c)— 
(A) in paragraph (1), by inserting ‘‘, in-
cluding those regarding distance education’’ 
after ‘‘their responsibilities’’; 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (6) as paragraphs (4) through (8); and 
(C) by inserting after paragraph (1) (as 
amended by subparagraph (A)) the following:
522 
•HR 4137 EH2S 
‘‘(2) monitors the growth of programs at insti-
tutions that are experiencing significant enrollment 
growth; 
‘‘(3) requires an institution to submit a teach- 
out plan for approval to the accrediting agency upon 
the occurrence of any of the following events— 
‘‘(A) the Department notifies the accred-
iting agency of an action against the institution 
pursuant to section 487(d); 
‘‘(B) the accrediting agency acts to with-
draw, terminate, or suspend the accreditation of 
an institution; and 
‘‘(C) the institution notifies the accrediting 
agency that the institution intends to cease op-
erations;’’; 
(3) in subsection (g), by adding at the end the 
following: ‘‘Nothing in this section shall be construed 
to permit the Secretary to establish any criteria that 
specifies, defines, or prescribes the standards that 
accrediting agencies or associations shall use to as-
sess any institution’s success with respect to student 
achievement.’’; and 
(4) in subsection (o), by adding at the end the 
following: ‘‘Notwithstanding any other provision of
523 
•HR 4137 EH2S 
law, the Secretary shall not promulgate any regula-
tion with respect to subsection (a)(5).’’. 
(b) RULE OF CONSTRUCTION.—Section 496 is fur-
ther amended by adding at the end the following new sub-
section: 
‘‘(p) RULE
OF CONSTRUCTION.—Nothing in sub-
section (a)(5) of this section shall restrict the authority 
of— 
‘‘(1) an accrediting agency or association to set, 
with the involvement of its members, and to apply 
accreditation standards to institutions or programs 
that seek review by the agency or association; or 
‘‘(2) an institution to develop and use institu-
tional standards to show its success with respect to 
student achievement, which shall be considered as 
part of any accreditation review.’’. 
(c) 
ADDITIONAL
AMENDMENT.—Section 
496(a)(4)(A) as amended by subsection (a) is further 
amended by inserting after ‘‘consistently applies and en-
forces standards’’ the following: ‘‘that respect the stated 
mission of the institution of higher education, including 
religious missions, and’’.
524 
•HR 4137 EH2S 
SEC. 497. ACCREDITATION OMBUDSMAN. 
Subpart 2 of part H of title IV is amended by insert-
ing after section 496 (20 U.S.C. 1099b) the following new 
section: 
‘‘SEC. 497. ACCREDITATION OMBUDSMAN. 
‘‘(a) APPOINTMENT.—The Assistant Secretary for 
Postsecondary Education, in consultation with the Sec-
retary, shall appoint an Accreditation Ombudsman to pro-
vide timely assistance to institutions of higher education, 
accrediting agencies and associations, and other partici-
pants in the accreditation process who may have griev-
ances related to the functions described in subsection (c). 
‘‘(b) PUBLIC INFORMATION.—The Assistant Sec-
retary for Postsecondary Education shall disseminate in-
formation about the availability and functions of the Om-
budsman to institutions of higher education, accrediting 
agencies and associations, and other participants in the 
accreditation process. 
‘‘(c) FUNCTIONS
OF OMBUDSMAN.—The Ombuds-
man appointed under this section shall— 
‘‘(1) in accordance with regulations of the Sec-
retary, receive, review, and attempt to resolve com-
plaints from institutions of higher education, accred-
iting agencies and associations, and other partici-
pants in the accreditation process described in sub-
section (a), including, as appropriate, attempts to
525 
•HR 4137 EH2S 
resolve such complaints within the Department of 
Education and with institutions of higher education, 
accreditation agencies and associations, and other 
participants in title IV programs; and 
‘‘(2) compile and analyze data on institutions of 
higher education and accrediting agency and associa-
tion complaints and make appropriate recommenda-
tions. 
‘‘(d) REPORT.—Each year, the Ombudsman shall 
submit a report to the Assistant Secretary for Postsec-
ondary Education, for inclusion in the annual report under 
section 114, that describes the activities, and evaluates the 
effectiveness of the Ombudsman during the preceding 
year.’’. 
SEC. 498. PROGRAM REVIEW AND DATA. 
Section 498A(b) (20 U.S.C. 1099c–1(b)) is amend-
ed— 
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(6) provide the institution adequate oppor-
tunity to review and respond to any program review
526 
•HR 4137 EH2S 
report or audit finding before any final program re-
view or audit determination is reached, including ac-
cess to any and all workpapers, notes, documenta-
tion, records, or other information relating to the 
program review report or audit finding; 
‘‘(7) review and take into consideration the in-
stitution’s response in any final program review or 
audit determination, and include in the final deter-
mination a written statement addressing the institu-
tion’s response and stating the basis for such final 
determination, and a copy of the institution’s re-
sponse; and 
‘‘(8) maintain and preserve at all times the con-
fidentiality of any program review report until the 
requirements of paragraphs (6) and (7) are met, and 
until a final program review determination has been 
issued.’’. 
SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM 
EVALUATION. 
Section 499 (as added by section 701 of the College 
Cost Reduction and Access Act of 2007) is amended by 
adding at the end the following new subsections: 
‘‘(c) REQUIRED INITIAL EVALUATION.—The Sec-
retary and Secretary of the Treasury shall jointly conduct 
an evaluation, in consultation with the Office of Manage-
527 
•HR 4137 EH2S 
ment and Budget, the Congressional Budget Office, and 
the Comptroller General, of the pilot program carried out 
by the Secretary under this section. The evaluation shall 
determine— 
‘‘(1) the extent of the savings to the Federal 
Government that are generated through the pilot 
program, compared to the cost the Federal Govern-
ment would have incurred in operating the PLUS 
loan program under section 428B in the absence of 
the pilot program; 
‘‘(2) the number of lenders that participated in 
the pilot program, and the extent to which the pilot 
program generated competition among lenders to 
participate in the auctions under the pilot program; 
‘‘(3) the number and volume of loans made 
under the pilot in each State; 
‘‘(4) the effect of the transition to and oper-
ation of the pilot program on the ability of— 
‘‘(A) lenders participating in the pilot pro-
gram to originate loans made through the pilot 
program smoothly and efficiently; 
‘‘(B) institutions of higher education par-
ticipating in the pilot program to disburse loans 
made through the pilot program smoothly and 
efficiently; and
528 
•HR 4137 EH2S 
‘‘(C) parents to obtain loans made through 
the pilot program in a timely and efficient man-
ner; 
‘‘(5) the differential impact, if any, of the auc-
tion among the States, including between rural and 
non-rural States; 
‘‘(6) the feasibility of using the mechanism pi-
loted to operate the other loan programs under part 
B of this title; 
‘‘(7) the feasibility of using other market mech-
anisms to operate the loan programs under part B 
of this title, including the sale of securities backed 
by federally owned student loan assets originated by 
banks acting as agents of the Federal Government; 
and 
‘‘(8) the feasibility of a specific alternative mar-
ket-based mechanism that will— 
‘‘(A) determine lender returns; 
‘‘(B) result in reduced Federal costs on a 
program-wide basis, on loans made, insured, or 
guaranteed under part B of this title, excluding 
from consideration the Federal PLUS loans de-
scribed in section 428B that are the subject of 
the competitive loan auction pilot program 
under this section;
529 
•HR 4137 EH2S 
‘‘(C) include not more than— 
‘‘(i) 10 percent of the annual loan vol-
ume under this part B of this title during 
the first year of the alternative pilot pro-
gram; and 
‘‘(ii) 20 percent of the annual loan 
volume under this part B of this title dur-
ing the subsequent years of the alternative 
pilot program; 
‘‘(D) permit participation in any alter-
native auction-based pilot program on a vol-
untary basis for eligible institutions and eligible 
lenders participating under part B of this title 
prior to July 1, 2007; and 
‘‘(E) provide for all savings to the United 
States Treasury generated by such alternative 
pilot program to be distributed to institutions 
participating under this section on a basis pro-
portionate to loan volume under such part for 
supplemental, need-based financial aid, except 
than an institution that is operating as an eligi-
ble lender under section 435(d)(2) shall not be 
eligible for any such distribution. 
‘‘(d) REPORTS.—The Secretary and the Secretary of 
the Treasury shall submit to the authorizing committees—
530 
•HR 4137 EH2S 
‘‘(1) not later than September 1, 2010, a pre-
liminary report regarding the findings of the evalua-
tion described in subsection (c); 
‘‘(2) not later than September 1, 2012, an in-
terim report regarding such findings; and 
‘‘(3) not later than September 1, 2013, a final 
report regarding such findings. 
‘‘(e) INDEPENDENT EVALUATION.—The Government 
Accountability Office shall conduct an independent evalua-
tion of any auction or auctions conducted under this sec-
tion no later than September 1, 2013.’’. 
TITLE V—TITLE V AMENDMENTS 
SEC. 501. POSTBACCALAUREATE OPPORTUNITIES FOR HIS-
PANIC AMERICANS. 
(a) ESTABLISHMENT
OF
PROGRAM.—Title V is 
amended— 
(1) by redesignating part B as part C; 
(2) by redesignating sections 511 through 518 
as sections 521 through 528, respectively; and 
(3) by inserting after section 505 (20 U.S.C. 
1101d) the following new part: 
‘‘PART B—PROMOTING POSTBACCALAUREATE 
OPPORTUNITIES FOR HISPANIC AMERICANS 
‘‘SEC. 511. PURPOSES. 
‘‘The purposes of this part are—
531 
•HR 4137 EH2S 
‘‘(1) to expand postbaccalaureate educational 
opportunities for, and improve the academic attain-
ment of, Hispanic students; and 
‘‘(2) to expand the postbaccalaureate academic 
offerings and enhance the program quality in the in-
stitutions that are educating the majority of His-
panic college students and helping large numbers of 
Hispanic and low-income students complete postsec-
ondary degrees. 
‘‘SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY. 
‘‘(a) PROGRAM AUTHORIZED.—Subject to the avail-
ability of funds appropriated to carry out this part, the 
Secretary shall award competitive grants to Hispanic-serv-
ing institutions determined by the Secretary to be making 
substantive contributions to graduate educational opportu-
nities for Hispanic students. 
‘‘(b) ELIGIBILITY.—For the purposes of this part, an 
‘eligible institution’ means an institution of higher edu-
cation that— 
‘‘(1) is an eligible institution under section 
502(a)(2); and 
‘‘(2) offers a postbaccalaureate certificate or de-
gree granting program.
532 
•HR 4137 EH2S 
‘‘SEC. 513. AUTHORIZED ACTIVITIES. 
‘‘Grants awarded under this part shall be used for 
one or more of the following activities: 
‘‘(1) Purchase, rental, or lease of scientific or 
laboratory equipment for educational purposes, in-
cluding instructional and research purposes. 
‘‘(2) Construction, maintenance, renovation, 
and improvement of classrooms, libraries, labora-
tories, and other instructional facilities, including 
purchase or rental of telecommunications technology 
equipment or services. 
‘‘(3) Purchase of library books, periodicals, 
technical and other scientific journals, microfilm, 
microfiche, and other educational materials, includ-
ing telecommunications program materials. 
‘‘(4) Support for needy postbaccalaureate stu-
dents including outreach, academic support services, 
mentoring, scholarships, fellowships, and other fi-
nancial assistance to permit the enrollment of such 
students in postbaccalaureate certificate and degree 
granting programs. 
‘‘(5) Support of faculty exchanges, faculty de-
velopment, faculty research, curriculum development, 
and academic instruction. 
‘‘(6) Creating or improving facilities for Inter-
net or other distance learning academic instruction
533 
•HR 4137 EH2S 
capabilities, including purchase or rental of tele-
communications technology equipment or services. 
‘‘(7) Collaboration with other institutions of 
higher education to expand postbaccalaureate certifi-
cate and degree offerings. 
‘‘(8) Other activities proposed in the application 
submitted pursuant to section 514 that— 
‘‘(A) contribute to carrying out the pur-
poses of this part; and 
‘‘(B) are approved by the Secretary as part 
of the review and acceptance of such applica-
tion. 
‘‘SEC. 514. APPLICATION AND DURATION. 
‘‘(a) APPLICATION.—Any eligible institution may 
apply for a grant under this part by submitting an applica-
tion to the Secretary at such time and in such manner 
as determined by the Secretary. Such application shall 
demonstrate how the grant funds will be used to improve 
postbaccalaureate education opportunities in programs 
and professions in which Hispanic Americans are under-
represented. 
‘‘(b) DURATION.—Grants under this part shall be 
awarded for a period not to exceed 5 years.
537 
•HR 4137 EH2S 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (G); 
(B) by striking the period at the end of 
subparagraph (H) and inserting a semicolon; 
and 
(C) by inserting after subparagraph (H) 
the following new subparagraphs: 
‘‘(I) supporting instructors of the less com-
monly taught languages; and 
‘‘(J) projects that support in students an 
understanding of science and technology in co-
ordination with foreign language proficiency.’’; 
and 
(3) in paragraph (4)— 
(A) by amending subparagraph (B) to read 
as follows: 
‘‘(B) Partnerships or programs of linkage 
and outreach with 2-year and 4-year colleges 
and universities, including colleges of education 
and teacher professional development pro-
grams.’’; 
(B) in subparagraph (C), by striking ‘‘Pro-
grams of linkage or outreach’’ and inserting 
‘‘Partnerships or programs of linkage and out-
reach’’;
538 
•HR 4137 EH2S 
(C) in subparagraph (E)— 
(i) by striking ‘‘foreign area’’ and in-
serting ‘‘area studies’’; 
(ii) by striking ‘‘of linkage and out-
reach’’; and 
(iii) by striking ‘‘(C), and (D)’’ and 
inserting ‘‘(D), and (E)’’; 
(D) by redesignating subparagraphs (C), 
(D), and (E) as subparagraphs (D), (E), and 
(F), respectively; and 
(E) by inserting after subparagraph (B) 
the following new subparagraph: 
‘‘(C) Partnerships with local educational 
agencies and public and private elementary and 
secondary education schools that are designed 
to increase student academic achievement in 
foreign language and knowledge of world re-
gions, and to facilitate the wide dissemination 
of materials related to area studies.’’. 
(c) FELLOWSHIPS
FOR FOREIGN LANGUAGE
AND 
AREA OR INTERNATIONAL STUDIES.—Section 602(b) (20 
U.S.C. 1122(b)) is amended— 
(1) by inserting ‘‘AND UNDERGRADUATE’’ after 
‘‘GRADUATE’’ in the subsection heading; and
539 
•HR 4137 EH2S 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) ELIGIBLE STUDENTS.—A student receiv-
ing a stipend described in paragraph (1) shall be en-
gaged in an instructional program with stated per-
formance goals for functional foreign language use 
or in a program developing such performance goals, 
in combination with area studies, international stud-
ies, or the international aspects of a professional 
studies program, including predissertation level stud-
ies, preparation for dissertation research, disserta-
tion research abroad, and dissertation writing, 
and— 
‘‘(A) in the case of graduate fellowships, 
activities in connection with a program de-
scribed 
in 
this 
paragraph 
may 
include 
predissertation level studies, preparation for 
dissertation 
research, 
dissertation 
research 
abroad, and dissertation writing; or 
‘‘(B) in the case of undergraduate fellow-
ships, students may be allowed to use their fel-
lowships abroad for intermediate or advanced 
study of a less commonly taught language.’’.
540 
•HR 4137 EH2S 
(d) 
LANGUAGE
RESOURCE
CENTERS.—Section 
603(c) (20 U.S.C. 1123(c)) is amended by inserting ‘‘re-
flect the purposes of this part and’’ after ‘‘shall’’. 
(e) UNDERGRADUATE INTERNATIONAL STUDIES AND 
FOREIGN
LANGUAGE
PROGRAMS.—Section 604 (20 
U.S.C. 1124) is amended— 
(1) in subsection (a)(1), by striking ‘‘combina-
tions’’ each place it appears and inserting ‘‘con-
sortia’’; 
(2) in subsection (a)(2)— 
(A) in subparagraph (B)(ii), by striking 
‘‘teacher training’’ and inserting ‘‘teacher pro-
fessional development’’; 
(B) by redesignating subparagraphs (I) 
through (M) as subparagraphs (J) through (N), 
respectively; 
(C) by inserting after subparagraph (H) 
the following new subparagraph: 
‘‘(I) the provision of grants for educational 
programs abroad that are closely linked to the 
program’s overall goals and have the purpose of 
promoting foreign language fluency and knowl-
edge of world regions, except that not more 
than 10 percent of a grant recipient’s funds 
may be used for this purpose;’’; and
541 
•HR 4137 EH2S 
(D) in subparagraph (M)(ii) (as redesig-
nated by subparagraph (B) of this paragraph), 
by striking ‘‘elementary and secondary edu-
cation institutions’’ and inserting ‘‘local edu-
cational agencies and public and private ele-
mentary and secondary education schools’’; 
(3) in subsection (a)(4)(B), by inserting ‘‘that 
demonstrates a need for a waiver or reduction’’ be-
fore the period at the end; 
(4) in subsection (a)(6), by inserting ‘‘reflect 
the purposes of this part and’’ after ‘‘shall’’; 
(5) in subsection (a)(8), by striking ‘‘may’’ and 
inserting ‘‘shall’’; and 
(6) by striking subsection (c). 
(f) RESEARCH; STUDIES; ANNUAL REPORT.—Section 
605(a) (20 U.S.C. 1125(a)) is amended by inserting be-
fore the period at the end of the first sentence the fol-
lowing: ‘‘, including the systematic collection, analysis, and 
dissemination of data’’. 
(g) TECHNOLOGICAL INNOVATION
AND COOPERA-
TION FOR FOREIGN INFORMATION ACCESS.—Section 606 
(20 U.S.C. 1126) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘or consortia of such insti-
tutions or libraries’’ and inserting ‘‘or partner-
542 
•HR 4137 EH2S 
ships between such institutions or libraries and 
nonprofit educational organizations including 
museums’’; 
(B) by striking ‘‘new’’; and 
(C) by inserting ‘‘from foreign sources’’ 
after ‘‘disseminate information’’; 
(2) in subsection (b)— 
(A) by inserting ‘‘acquire and’’ before ‘‘fa-
cilitate access’’ in paragraph (1); 
(B) by striking ‘‘new means of’’ in para-
graph (3) and inserting ‘‘new means and stand-
ards for’’; 
(C) by striking ‘‘and’’ at the end of para-
graph (6); 
(D) by striking the period at the end of 
paragraph (7) and inserting a semicolon; and 
(E) by inserting after paragraph (7) the 
following new paragraphs: 
‘‘(8) to establish linkages between grant recipi-
ents under subsection (a) with libraries, museums, 
organizations, or institutions of higher education lo-
cated overseas to facilitate carrying out the purposes 
of this section; and
543 
•HR 4137 EH2S 
‘‘(9) to carry out other activities deemed by the 
Secretary to be consistent with the purposes of this 
section.’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(e) SPECIAL RULE.—The Secretary may waive or 
reduce the required non-Federal share for institutions 
that— 
‘‘(1) are eligible to receive assistance under part 
A or B of title III or under title V; and 
‘‘(2) have submitted a grant application under 
this section that demonstrates a need for a waiver 
or reduction.’’. 
(h) SELECTION
OF GRANT RECIPIENTS.—Section 
607(b) (20 U.S.C. 1127(b)) is amended— 
(1) by striking ‘‘objectives’’ and inserting ‘‘mis-
sions’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘In keeping with the purposes of this part, 
the Secretary shall take into account the degree to 
which activities of centers, programs, and fellowships 
at institutions of higher education address national 
needs, generate and disseminate information, and 
foster debate on international issues.’’.
544 
•HR 4137 EH2S 
(i) EQUITABLE DISTRIBUTION.—Section 608(a) (20 
U.S.C. 1128(a)) is amended by adding at the end the fol-
lowing new sentence: ‘‘Grants made under section 602 
shall also reflect the purposes of this part.’’. 
(j) AUTHORIZATION OF APPROPRIATIONS.—Section 
610 (20 U.S.C. 1128b) is amended by striking ‘‘1999’’ 
and inserting ‘‘2009’’. 
(k) CONFORMING AMENDMENTS.— 
(1) Sections 603(a), 604(a)(5), and 612 (20 
U.S.C. 1123(a), 1124(a)(5), 1130–1) are each 
amended by striking ‘‘combinations’’ each place it 
appears and inserting ‘‘consortia’’. 
(2) Section 612 (20 U.S.C. 1130–1) is further 
amended by striking ‘‘combination’’ each place it ap-
pears and inserting ‘‘consortium’’. 
SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PRO-
GRAMS. 
(a) CENTERS FOR INTERNATIONAL BUSINESS EDU-
CATION.—Section 612 (20 U.S.C. 1130–1) is further 
amended— 
(1) in subsection (a)(1)(C), by inserting ‘‘manu-
facturing software systems, technology manage-
ment,’’ after ‘‘commerce,’’; 
(2) in subsection (c)(2)(E), by inserting ‘‘(in-
cluding those that are eligible to receive assistance
545 
•HR 4137 EH2S 
under part A or B of title III or under title V)’’ 
after ‘‘other institutions of higher education’’; 
(3) in subsection (c)(2)— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (E); and 
(B) by inserting the following new sub-
paragraph after subparagraph (E) (and redesig-
nating the succeeding subparagraph): 
‘‘(F) programs encouraging the advance-
ment and understanding of cultural, techno-
logical management, and manufacturing soft-
ware systems practices between institutions of 
higher education in the United States and 
countries with existing partnerships with other 
countries, including those in Asian countries fo-
cused on this industry; and’’; and 
(4) in subsection (e), by adding at the end the 
following new paragraph: 
‘‘(5) SPECIAL RULE.—The Secretary may waive 
or reduce the required non-Federal share for institu-
tions that— 
‘‘(A) are eligible to receive assistance 
under part A or B of title III or under title V; 
and
546 
•HR 4137 EH2S 
‘‘(B) have submitted a grant application 
under this section that demonstrates a need for 
a waiver or reduction, as determined by the 
Secretary.’’. 
(b) EDUCATION AND TRAINING PROGRAMS.—Section 
613 (20 U.S.C. 1130a) is amended by adding at the end 
the following new subsection: 
‘‘(e) SPECIAL RULE.—The Secretary may waive or 
reduce the required non-Federal share for institutions 
that— 
‘‘(1) are eligible to receive assistance under part 
A or B of title III or under title V; and 
‘‘(2) have submitted a grant application under 
this section that demonstrates a need for a waiver 
or reduction, as determined by the Secretary.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
614 (20 U.S.C. 1130b) is amended by striking ‘‘1999’’ 
each place it appears and inserting ‘‘2009’’. 
SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY. 
(a) FOREIGN SERVICE PROFESSIONAL DEVELOP-
MENT.—Section 621 (20 U.S.C. 1131) is amended— 
(1) by striking the heading of such section and 
inserting the following:
547 
•HR 4137 EH2S 
‘‘SEC. 621. PROGRAM FOR FOREIGN SERVICE PROFES-
SIONALS.’’; 
(2) by striking the second sentence of sub-
section (a) and inserting the following: ‘‘The Insti-
tute shall conduct a program to enhance the inter-
national competitiveness of the United States by in-
creasing the participation of underrepresented popu-
lations in the international service, including private 
international voluntary organizations, the inter-
national commercial service, and the foreign service 
of the United States.’’; and 
(3) in subsection (b)(1), by striking subpara-
graphs (A) and (B) and inserting the following: 
‘‘(A) A Tribally Controlled College or Uni-
versity or Alaska Native or Native Hawaiian- 
serving institution eligible for assistance under 
title III, an institution eligible for assistance 
under part B of title III, or a Hispanic-serving 
institution eligible for assistance under title V. 
‘‘(B) An institution of higher education 
which serves substantial numbers of underrep-
resented minority students.’’. 
(b) INSTITUTIONAL DEVELOPMENT.—Section 622(a) 
(20 U.S.C. 1131–1(a)) is amended by inserting before the 
period at the end the following: ‘‘and promote collabora-
548 
•HR 4137 EH2S 
tion with colleges and universities that receive funds under 
this title’’. 
(c) STUDY ABROAD PROGRAM.—Section 623(a) (20 
U.S.C. 1131a(a)) is amended by inserting after ‘‘1978,’’ 
the following: ‘‘Alaska Native-serving, Native Hawaiian- 
serving, and Hispanic-serving institutions,’’. 
(d) ADVANCED DEGREE IN INTERNATIONAL RELA-
TIONS.—Section 624 (20 U.S.C. 1131b) is amended— 
(1) by striking ‘‘MASTERS’’ in the heading of 
such section and inserting ‘‘ADVANCED’’; 
(2) by striking ‘‘a masters degree in inter-
national relations’’ and inserting ‘‘an advanced de-
gree in international relations, international affairs, 
international economics, or other academic areas re-
lated to the Institute fellow’s career objectives’’; and 
(3) by striking ‘‘The masters degree program 
designed by the consortia’’ and inserting ‘‘The ad-
vanced degree study program shall be designed by 
the consortia, consistent with the fellow’s career ob-
jectives, and’’. 
(e) INTERNSHIPS.—Section 625 (20 U.S.C. 1131c) 
is amended— 
(1) in subsection (a), by inserting after ‘‘1978,’’ 
the following: ‘‘Alaska Native-serving, Native Hawai-
ian-serving, and Hispanic-serving institutions,’’;
549 
•HR 4137 EH2S 
(2) in subsection (b)— 
(A) by inserting ‘‘and’’ after the semicolon 
at the end of paragraph (2); 
(B) by striking ‘‘; and’’ at the end of para-
graph (3) and inserting a period; and 
(C) by striking paragraph (4); and 
(3) by amending subsection (c) to read as fol-
lows: 
‘‘(c) RALPH J. BUNCHE FELLOWS.—In order to as-
sure the recognition and commitment of individuals from 
underrepresented student populations who demonstrate 
special interest in international affairs and language 
study, eligible students who participate in the internship 
programs authorized under subsections (a) and (b) shall 
be known as the Ralph J. Bunche Fellows.’’. 
(f) REPORT.—Section 626 (20 U.S.C. 1131d) is 
amended by striking ‘‘annually prepare a report’’ and in-
serting ‘‘prepare a report biennially’’. 
(g) AUTHORIZATION OF APPROPRIATIONS.—Section 
628 (20 U.S.C. 1131f) is amended by striking ‘‘1999’’ and 
inserting ‘‘2009’’. 
SEC. 604. PREPARING FOR EARLY FOREIGN LANGUAGE IN-
STRUCTION. 
Title VI (20 U.S.C. 1121 et seq.) is amended— 
(1) by redesignating part D as part E;
550 
•HR 4137 EH2S 
(2) by redesignating section 631 (20 U.S.C. 
1132) as section 641; and 
(3) by inserting after section 628 the following 
new part: 
‘‘PART D—PREPARING FOR EARLY FOREIGN 
LANGUAGE INSTRUCTION 
‘‘SEC. 631. PREPARING FOR EARLY FOREIGN LANGUAGE IN-
STRUCTION. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE PARTNERSHIP.—The term ‘eligi-
ble partnership’ means a partnership that— 
‘‘(A) shall include— 
‘‘(i) a foreign language department of 
an institution of higher education; and 
‘‘(ii) a local educational agency; and 
‘‘(B) may include— 
‘‘(i) another foreign language or 
teacher education department of an insti-
tution of higher education; 
‘‘(ii) another local educational agency, 
or an elementary or secondary school; 
‘‘(iii) a business; 
‘‘(iv) a nonprofit organization of dem-
onstrated effectiveness, including a mu-
seum;
551 
•HR 4137 EH2S 
‘‘(v) heritage or community centers 
for language study; 
‘‘(vi) language resource centers; or 
‘‘(vii) the State foreign language coor-
dinator or State educational agency. 
‘‘(2) HIGH-NEED LOCAL EDUCATIONAL AGEN-
CY.—The term ‘high-need local educational agency’ 
has the meaning given the term in section 2102 of 
the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6602). 
‘‘(3) ARTICULATED.—The term ‘articulated’ 
means that each grade level of the foreign language 
program is designed to sequentially expand on the 
student achievement of the previous level with a goal 
toward achieving an established level of language 
proficiency. 
‘‘(b) PURPOSE.—The purpose of this section is to im-
prove the performance of students in the study of foreign 
languages by encouraging States, institutions of higher 
education, elementary schools, and secondary schools to 
participate in programs that— 
‘‘(1) upgrade the status and stature of foreign 
language teaching by encouraging institutions of 
higher education to assume greater responsibility for 
improving 
foreign 
language 
teacher 
education
552 
•HR 4137 EH2S 
through the establishment of a comprehensive, inte-
grated system of recruiting and advising such teach-
ers; 
‘‘(2) focus on education of foreign language 
teachers as a career-long process that should con-
tinuously stimulate teachers’ intellectual growth and 
upgrade teachers’ knowledge and skills; 
‘‘(3) bring foreign language teachers in elemen-
tary schools and secondary schools together with lin-
guists or higher education foreign language profes-
sionals to increase the subject matter knowledge and 
improve the teaching skills of teachers through the 
use of more sophisticated resources that institutions 
of higher education are better able to provide than 
such schools; and 
‘‘(4) develop more rigorous foreign language 
curricula that contain— 
‘‘(A) professionally accepted standards for 
elementary and secondary education instruction; 
‘‘(B) standards expected for postsecondary 
study in foreign language; and 
‘‘(C) articulated foreign language pro-
grams from kindergarten through grade 12 that 
demonstrate increased competence and pro-
ficiency over time and grade.
553 
•HR 4137 EH2S 
‘‘(c) GRANTS TO PARTNERSHIPS.— 
‘‘(1) IN GENERAL.—The Secretary may award 
grants, on a competitive basis, to eligible partner-
ships to enable the eligible partnerships to pay the 
Federal share of the costs of carrying out the au-
thorized activities described in this section. 
‘‘(2) DURATION.—The Secretary shall award 
grants under this section for a period of 5 years. 
‘‘(3) FEDERAL SHARE.—The Federal share of 
the costs of the activities assisted under this section 
shall be— 
‘‘(A) 75 percent of the costs for the first 
year that an eligible partnership receives a 
grant payment under this section; 
‘‘(B) 65 percent of such costs for the sec-
ond such year; and 
‘‘(C) 50 percent of such costs for each of 
the third, fourth, and fifth such years. 
‘‘(4) NON-FEDERAL SHARE.—The non-Federal 
share of the costs of carrying out the authorized ac-
tivities described in this section may be provided in 
cash or in kind, fairly evaluated. 
‘‘(5) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to eligible 
partnerships—
554 
•HR 4137 EH2S 
‘‘(A) that include high-need local edu-
cational agencies; or 
‘‘(B) that emphasize the teaching of com-
monly taught and critical foreign languages in 
an articulated program that demonstrates in-
creased competency and proficiency over grade 
and time. 
‘‘(d) APPLICATIONS.— 
‘‘(1) IN GENERAL.—Each eligible partnership 
desiring a grant under this section shall submit an 
application to the Secretary at such time, in such 
manner, and accompanied by such information as 
the Secretary may require. 
‘‘(2) CONTENTS.—An application under para-
graph (1) shall include— 
‘‘(A) an assessment of the teacher quality 
and professional development needs of all the 
schools and agencies participating in the eligible 
partnership with respect to the teaching and 
learning of foreign languages; 
‘‘(B) a description of how the activities to 
be carried out by the eligible partnership will be 
based on a review of relevant research, and an 
explanation of why the activities are expected to
555 
•HR 4137 EH2S 
improve student performance and to strengthen 
the quality of foreign language instruction; and 
‘‘(C) a description of— 
‘‘(i) how the eligible partnership will 
carry out the authorized activities de-
scribed in subsection (e); and 
‘‘(ii) the eligible partnership’s evalua-
tion and accountability plan as described 
in subsection (f). 
‘‘(e) AUTHORIZED ACTIVITIES.—An eligible partner-
ship shall use the grant funds provided under this section 
for 1 or more of the following activities related to elemen-
tary schools or secondary schools: 
‘‘(1) Creating opportunities for enhanced and 
ongoing professional development that improves the 
subject matter knowledge of foreign language teach-
ers. 
‘‘(2) Recruiting university students with foreign 
language majors for teaching. 
‘‘(3) Promoting strong teaching skills for for-
eign language teachers and teacher educators. 
‘‘(4) Establishing foreign language summer 
workshops or institutes (including follow-up) for 
teachers.
556 
•HR 4137 EH2S 
‘‘(5) Establishing distance learning programs 
for foreign language teachers. 
‘‘(6) Designing programs to prepare a teacher 
at a school to provide professional development to 
other teachers at the school and to assist novice 
teachers at such school, including (if applicable) a 
mechanism to integrate experiences from a summer 
workshop or institute. 
‘‘(7) Developing instruction materials. 
‘‘(f) EVALUATION
AND ACCOUNTABILITY PLAN.— 
Each eligible partnership receiving a grant under this sec-
tion shall develop an evaluation and accountability plan 
for activities assisted under this section that includes 
strong performance objectives. The plan shall include ob-
jectives and measures for— 
‘‘(1) increased participation by students in ad-
vanced courses in foreign language; 
‘‘(2) increased percentages of secondary school 
classes in foreign language taught by teachers with 
academic majors in foreign language; and 
‘‘(3) increased numbers of foreign language 
teachers who participate in content-based profes-
sional development activities. 
‘‘(g) REPORT.—Each eligible partnership receiving a 
grant under this section shall annually report to the Sec-
557 
•HR 4137 EH2S 
retary regarding the eligible partnership’s progress in 
meeting the performance objectives described in sub-
section (f). 
‘‘(h) TERMINATION.—If the Secretary determines 
that an eligible partnership is not making substantial 
progress in meeting the performance objectives described 
in subsection (f) by the end of the third year of a grant 
under this section, the grant payments shall not be made 
for the fourth and fifth years of the grant. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section, 
such sums as may be necessary for fiscal year 2009 and 
for each of the 4 succeeding fiscal years.’’. 
SEC. 605. EVALUATION, OUTREACH, AND DISSEMINATION. 
Part E of title VI, as redesignated by section 604 
of this Act, is amended by inserting after section 641 (20 
U.S.C. 1132 (as so redesignated)) the following new sec-
tion: 
‘‘SEC. 642. EVALUATION, OUTREACH, AND DISSEMINATION. 
‘‘The Secretary may use not more than one percent 
of the funds made available for this title for program eval-
uation, national outreach, and information dissemination 
activities.’’.
558 
•HR 4137 EH2S 
SEC. 606. STUDENT SAFETY. 
Part E of title VI, as redesignated by section 604 
of this Act, is further amended by inserting after section 
642 (as added by section 605 of this Act) the following 
new section: 
‘‘SEC. 643. STUDENT SAFETY. 
‘‘Applicants seeking funds under this title to support 
student travel and study abroad shall submit as part of 
their grant application a description of safety policies and 
procedures for students participating in the program while 
abroad.’’. 
SEC. 607. SCIENCE AND TECHNOLOGY ADVANCED FOREIGN 
LANGUAGE EDUCATION GRANT PROGRAM. 
Part E of title VI, as redesignated by section 604 
of this Act, is further amended by inserting after section 
643 (as added by section 606 of this Act) the following 
new section: 
‘‘SEC. 644. SCIENCE AND TECHNOLOGY ADVANCED FOR-
EIGN LANGUAGE EDUCATION GRANT PRO-
GRAM. 
‘‘(a) PURPOSE.—It is the purpose of this section to 
support programs in colleges and universities that— 
‘‘(1) encourage students to develop— 
‘‘(A) an understanding of science and tech-
nology; and 
‘‘(B) foreign language proficiency; and
559 
•HR 4137 EH2S 
‘‘(2) foster future international scientific col-
laboration. 
‘‘(b) DEVELOPMENT.—The Secretary shall develop a 
program for the awarding of grants to institutions of high-
er education that develop innovative programs for the 
teaching of foreign languages. 
‘‘(c) REGULATIONS AND REQUIREMENTS.—The Sec-
retary shall promulgate regulations for the awarding of 
grants under subsection (b). Such regulations shall require 
institutions of higher education to use grant funds for, 
among other things— 
‘‘(1) the development of an on-campus cultural 
awareness program by which students attend classes 
taught in a foreign language and study the science 
and technology developments and practices in a non- 
English speaking country; 
‘‘(2) immersion programs where students take 
science or technology related course work in a non- 
English speaking country; and 
‘‘(3) other programs, such as summer work-
shops, that emphasize the intense study of a foreign 
language and science technology. 
‘‘(d) GRANT DISTRIBUTION.—In distributing grants 
to institutions of higher education under this section, the 
Secretary shall give priority to—
560 
•HR 4137 EH2S 
‘‘(1) institutions that have programs focusing 
on curricula that combine the study of foreign lan-
guages and the study of science and technology and 
produce graduates who have both skills; and 
‘‘(2) institutions teaching critical foreign lan-
guages. 
‘‘(e) APPROPRIATIONS AUTHORIZED.—There are au-
thorized to be appropriated to carry out this section, such 
sums as may be necessary for fiscal year 2009 and for 
each subsequent fiscal year.’’. 
SEC. 608. REPORTING BY INSTITUTIONS. 
Part E of title VI (20 U.S.C. 1122), as redesignated 
by section 604 of this Act, is further amended by inserting 
after section 644 (as added by section 607 of this Act) 
the following new section: 
‘‘SEC. 645. REPORTING BY INSTITUTIONS. 
‘‘(a) APPLICABILITY.—The data requirement in sub-
section (b) shall apply to an institution of higher education 
that receives funds for a center or program under this title 
if— 
‘‘(1) the amount of cash, or the fair market 
value, or both, of the contributions received from a 
foreign government or private sector corporation, 
foundation, or any other entity or individual (exclud-
561 
•HR 4137 EH2S 
ing domestic government entities) during any fiscal 
year exceeds $1,000,000 in the aggregate; and 
‘‘(2) the aggregate contribution is intended for 
use directly or indirectly by a center or program re-
ceiving funds under this title. 
‘‘(b) DATA REQUIRED.—The Secretary shall require 
of each institution to which this paragraph applies under 
subsection (a), as part of the Integrated Postsecondary 
Education Data System (IPEDS) annual data collection, 
that such institution report the following data: 
‘‘(1) The names and addresses of any foreign 
government or private sector corporation, founda-
tion, or any other entity or individual that contrib-
uted such amount of cash or such fair market value 
of other property as described in subsection (a)(1). 
‘‘(2) The amount of such cash or the fair mar-
ket value of such property. 
‘‘(c) EXEMPTION FROM REPORTING.—The Secretary 
may, at the request of the donor, exempt domestic donors 
who make anonymous donations from the institutional re-
porting requirement of subsection (b)(1) to preserve the 
anonymity of their contribution. The data of institutions 
shall identify such donors as ‘anonymous’. This exemption 
does not apply to non-domestic donations.
562 
•HR 4137 EH2S 
‘‘(d) DEADLINE.—Any report under subsection (b) 
shall be made no later than such date as the Secretary 
shall require. 
‘‘(e) CONSEQUENCES OF FAILURE TO REPORT.—In 
the case of any institution from which a report is re-
quested under subsection (b), if the Secretary does not re-
ceive a report in accordance with the deadline established 
under subsection (d), the Secretary shall— 
‘‘(1) make a determination that the institution 
of higher education has failed to make the report re-
quired by this paragraph; 
‘‘(2) transmit a notice of the determination to 
Congress; and 
‘‘(3) publish in the Federal Register a notice of 
the determination and the effect of the determina-
tion on the eligibility of the institution of higher 
education for contracts and grants under this title.’’. 
SEC. 609. FEDERAL FOREIGN LANGUAGE EDUCATION MAR-
KETING CAMPAIGN. 
The Secretary of Education shall establish a foreign 
language education marketing campaign to encourage stu-
dents at secondary schools and institutions of higher edu-
cation to study foreign languages, particularly languages 
that are less commonly taught and critical to the national 
security of the United States.
563 
•HR 4137 EH2S 
TITLE VII—TITLE VII 
AMENDMENTS 
SEC. 701. JAVITS FELLOWSHIP PROGRAM. 
(a) AUTHORITY AND TIMING OF AWARDS.—Section 
701(a) (20 U.S.C. 1132a(a)) is amended by inserting 
after the second sentence the following: ‘‘For purposes of 
the exception in the preceding sentence, a master’s degree 
in fine arts shall be considered a terminal degree.’’. 
(b) INTERRUPTIONS OF STUDY.—Section 701(c) (20 
U.S.C. 1134(c)) is amended by adding at the end the fol-
lowing new sentence: ‘‘In the case of other exceptional cir-
cumstances, such as active duty military service or per-
sonal or family member illness, the institution of higher 
education may also permit the fellowship recipient to in-
terrupt periods of study for the duration of the tour of 
duty (in the case of military service) or not more than 
12 months (in any other case), but without payment of 
the stipend.’’. 
(c) 
ALLOCATION
OF
FELLOWSHIPS.—Section 
702(a)(1) (20 U.S.C. 1134a(a)(1)) is amended— 
(1) in the first sentence, by inserting ‘‘from di-
verse geographic regions’’ after ‘‘higher education’’; 
and 
(2) by adding at the end the following new sen-
tence: ‘‘The Secretary shall also assure that at least
564 
•HR 4137 EH2S 
one representative appointed to the Board represents 
an institution that is eligible for a grant under title 
III or V of this Act.’’. 
(d) STIPENDS.—Section 703 (20 U.S.C. 1134b) is 
amended— 
(1) in subsection (a)— 
(A) by striking ‘‘1999–2000’’ and inserting 
‘‘2009–2010’’; and 
(B) by striking ‘‘Foundation graduate fel-
lowships’’ and inserting ‘‘Foundation Graduate 
Research Fellowship Program on February 1 of 
such academic year’’; and 
(2) in subsection (b), by amending paragraph 
(1)(A) to read as follows: 
‘‘(1) IN GENERAL.—(A) The Secretary shall (in 
addition to stipends paid to individuals under this 
subpart) pay to the institution of higher education, 
for each individual awarded a fellowship under this 
subpart at such institution, an institutional allow-
ance. Except as provided in subparagraph (B), such 
allowance shall be, for academic year 2009–2010 
and succeeding academic years, the same amount as 
the institutional payment made for academic year 
2008–2009, adjusted for academic year 2009–2010 
and annually thereafter in accordance with inflation
565 
•HR 4137 EH2S 
as determined by the Department of Labor’s Con-
sumer Price Index for All Urban Consumers for the 
previous calendar year.’’. 
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 
705 (20 U.S.C. 1134d) is amended by striking ‘‘1999’’ 
and inserting ‘‘2009’’. 
SEC. 702. GRADUATE ASSISTANCE IN AREAS OF NATIONAL 
NEED. 
(a) DESIGNATION OF AREAS OF NATIONAL NEED; 
PRIORITY.—Section 712 (20 U.S.C. 1135a) is amended— 
(1) by amending subsection (b) to read as fol-
lows: 
‘‘(b) DESIGNATION
OF
AREAS
OF
NATIONAL 
NEED.—After consultation with appropriate Federal and 
nonprofit agencies and organizations, including the Na-
tional Science Foundation, the Department of Defense, 
the Department of Homeland Security, the National Acad-
emy of Sciences, and the Bureau of Labor Statistics, the 
Secretary shall designate areas of national need. In mak-
ing such designations, the Secretary shall take into consid-
eration— 
‘‘(1) the extent to which the interest in the area 
is compelling;
566 
•HR 4137 EH2S 
‘‘(2) the extent to which other Federal pro-
grams support postbaccalaureate study in the area 
concerned; 
‘‘(3) an assessment of how the program may 
achieve the most significant impact with available re-
sources; 
‘‘(4) an assessment of current and future pro-
fessional workforce needs of the United States; and 
‘‘(5) the priority described in subsection (c).’’; 
and 
(2) by adding at the end the following new sub-
section: 
‘‘(c) PRIORITY.—The Secretary shall establish a pri-
ority for grants in order to prepare individuals for the pro-
fessorate who will train highly qualified elementary and 
secondary mathematics and science teachers, special edu-
cation teachers, and teachers who provide instruction for 
limited English proficient individuals. Such grants shall 
offer program assistance and graduate fellowships for— 
‘‘(1) post baccalaureate study related to teacher 
preparation and pedagogy in mathematics and 
science for students who have completed a master’s 
degree or are pursuing a doctorate of philosophy in 
mathematics or science;
567 
•HR 4137 EH2S 
‘‘(2) post baccalaureate study related to teacher 
preparation and pedagogy in special education and 
English language acquisition and academic pro-
ficiency for limited English proficient individuals; 
and 
‘‘(3) support of dissertation research in the 
fields of mathematics, science, special education, or 
second language pedagogy and second language ac-
quisition.’’. 
(b) COLLABORATION REQUIRED FOR CERTAIN AP-
PLICATIONS.—Section 713(b) (20 U.S.C. 1135b) is 
amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(9); 
(2) by redesignating paragraph (10) as para-
graph (11); and 
(3) by inserting after paragraph (9) the fol-
lowing new paragraph: 
‘‘(10) in the case of an application from a de-
partment, program, or unit in education or teacher 
preparation, provide assurances that such depart-
ment, program, or unit will collaborate with depart-
ments, programs, or units in all content areas to en-
sure a successful combination of training in both 
teaching and such content; and’’.
568 
•HR 4137 EH2S 
(c) STIPENDS.—Section 714(b) (20 U.S.C. 1135c(b)) 
is amended— 
(1) by striking ‘‘1999–2000’’ and inserting 
‘‘2009–2010’’; and 
(2) by striking ‘‘Foundation graduate fellow-
ships’’ and inserting ‘‘Foundation Graduate Re-
search Fellowship Program on February 1 of such 
academic year’’. 
(d) ADDITIONAL ASSISTANCE.—Section 715(a)(1) 
(20 U.S.C. 1135d(a)(1)) is amended— 
(1) by striking ‘‘1999–2000’’ and inserting 
‘‘2009–2010’’; 
(2) by striking ‘‘1998–1999’’ and inserting 
‘‘2008–2009’’; and 
(3) by inserting ‘‘for All Urban Consumers’’ 
after ‘‘Price Index’’. 
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 
716 (20 U.S.C. 1135e) is amended by striking ‘‘1999’’ 
and inserting ‘‘2009’’. 
(f) TECHNICAL AMENDMENTS.—Section 714(c) (20 
U.S.C. 1135c(c)) is amended— 
(1) by striking ‘‘section 716(a)’’ and inserting 
‘‘section 715(a)’’; and 
(2) by striking ‘‘section 714(b)(2)’’ and insert-
ing ‘‘section 713(b)(2)’’.
569 
•HR 4137 EH2S 
(g) ADDITIONAL TECHNICAL AMENDMENTS.— 
(1) Section 711(a)(1) (20 U.S.C. 1135(a)) is 
amended by inserting ‘‘(including a masters de-
gree)’’ after ‘‘leading to a graduate degree’’. 
(2) Section 712(a)(1) (20 U.S.C. 1135a(a)(1)) 
is amended by inserting ‘‘(including a masters de-
gree)’’ after ‘‘leading to a graduate degree’’. 
(3) 
Section 
713 
(b)(5)(C) 
(20 
U.S.C. 
1135b(b)(5)(C)) is amended by inserting ‘‘at the in-
stitution’’ before the semicolon at the end. 
SEC. 703. THURGOOD MARSHALL LEGAL EDUCATIONAL OP-
PORTUNITY PROGRAM. 
(a) PROGRAM
AUTHORITY.—Section 721(a) (20 
U.S.C. 1136(a)) is amended— 
(1) by inserting ‘‘middle and high school’’ after 
‘‘disadvantaged’’; and 
(2) by striking the period at the end of the sen-
tence and inserting ‘‘and admission to law prac-
tice.’’. 
(b) 
ELIGIBILITY.—Section 
721(b) 
(20 
U.S.C. 
1136(b)) is amended by inserting ‘‘middle and high school 
or’’ before ‘‘college student’’. 
(c) CONTRACT
AND
GRANT
PURPOSES.—Section 
721(c) (20 U.S.C. 1136(c)) is amended—
570 
•HR 4137 EH2S 
(1) by inserting ‘‘middle and high school stu-
dents’’ after ‘‘identify’’ in paragraph (1); 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) to prepare such students for study at ac-
credited law schools and assist them with the devel-
opment of analytical skills and study methods to en-
hance their success and promote completion of law 
school;’’; 
(3) by striking ‘‘and’’ at the end of paragraph 
(4); 
(4) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(5) by adding at the end the following new 
paragraph: 
‘‘(6) to award Thurgood Marshall Fellowships 
to eligible law school students— 
‘‘(A) who participated in summer institutes 
authorized by subsection (d) and who are en-
rolled in an accredited law school; or 
‘‘(B) who are eligible law school students 
who have successfully completed a comparable 
summer institute program certified by the 
Council on Legal Educational Opportunity.’’.
571 
•HR 4137 EH2S 
(d) SERVICES PROVIDED.—Section 721(d)(1)(D) (20 
U.S.C. 1136(d)(1)(D)) is amended by inserting ‘‘in ana-
lytical skills and study methods’’ after ‘‘courses’’. 
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 
721(h) (20 U.S.C. 1136(h)) is amended by striking 
‘‘1999’’ and inserting ‘‘2009’’. 
(f) GENERAL PROVISIONS.—Subsection (e) of section 
731 (20 U.S.C. 1137(e)) is repealed. 
SEC. 704. PATSY T. MINK FELLOWSHIP PROGRAM. 
Part A of title VII (20 U.S.C. 1134) is further 
amended— 
(1) by redesignating subpart 4 as subpart 6; 
(2) in the heading of section 731, by striking 
‘‘SUBPARTS
1, 2, AND
3’’ and inserting ‘‘SUB-
PARTS 1 THROUGH 5’’; 
(3) in subsections (a) and (b) of section 731, by 
striking ‘‘subparts 1, 2, and 3’’ each place it appears 
and inserting ‘‘subparts 1 through 5’’; 
(4) in subsection (d) of such section, by striking 
‘‘subpart 1, 2, or 3’’ and inserting ‘‘subpart 1, 2, 3, 
4, or 5’’; and 
(5) by inserting after subpart 3 the following 
new subpart:
572 
•HR 4137 EH2S 
‘‘Subpart 4—Patsy T. Mink Fellowship Program 
‘‘SEC. 722. PATSY T. MINK FELLOWSHIPS. 
‘‘(a) PURPOSE; DESIGNATION.— 
‘‘(1) PURPOSE.—It is the purpose of this sub-
part to provide a program of fellowship awards to 
assist highly qualified minorities and women to ac-
quire the terminal master’s degree or the doctorate 
degree in academic areas in which such individuals 
are underrepresented for the purpose of entering the 
higher education professoriate. 
‘‘(2) ELIGIBLE
INSTITUTIONS.—For purposes 
of this subpart, the term ‘eligible institution’ means 
an institution of higher education, or a consortium 
of such institutions, that offers a program of post 
baccalaureate study leading to a graduate degree. 
‘‘(3) DESIGNATION.—Each recipient of a fellow-
ship award from an institution receiving a grant 
under this subpart shall be known as a Patsy T. 
Mink Graduate Fellow. 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) GRANTS BY SECRETARY.— 
‘‘(A) IN
GENERAL.—From funds made 
available under subsection (e), the Secretary 
shall make grants to eligible institutions of 
higher education to enable such institutions to
573 
•HR 4137 EH2S 
make fellowship awards to qualified students in 
accordance with the provisions of this subpart. 
‘‘(B) PRIORITY CONSIDERATION.—In mak-
ing grant awards under this subpart, the Sec-
retary shall consider the applicant institution’s 
prior experience in producing doctorates and 
terminal master’s degree holders who are mi-
norities and females, and shall give priority con-
sideration in making grants under this subpart 
to those institutions with a demonstrated record 
of producing minorities and women who have 
earned such degrees. 
‘‘(2) 
DISTRIBUTION
AND
AMOUNTS
OF 
GRANTS.— 
‘‘(A) EQUITABLE DISTRIBUTION.—In mak-
ing such grants the Secretary shall, to the max-
imum extent feasible, ensure an equitable geo-
graphic distribution of awards and an equitable 
distribution among eligible public and private 
institutions of higher education that apply for 
grants under this subpart and that demonstrate 
the ability to achieve the purpose of this sub-
part. 
‘‘(B) SPECIAL
RULE.—To the maximum 
extent practical, the Secretary shall award at
574 
•HR 4137 EH2S 
least 50 percent of the amount appropriated 
under this subpart to institutions of higher edu-
cation eligible for assistance under titles III and 
V, or to consortia composed of otherwise eligible 
institutions of higher education and such mi-
nority-serving institutions. 
‘‘(C) 
ALLOCATION.—In 
making 
such 
grants the Secretary shall, consistent with sub-
paragraphs (A) and (B), allocate appropriated 
funds to those institutions whose applications 
indicate the ability to significantly increase the 
numbers of minorities and women entering the 
higher education professoriate and that commit 
institutional resources to the attainment of the 
purpose of this subpart. No grant made under 
this subpart shall support fewer than fifteen de-
gree candidates consistent with subsection 
(d)(2). 
‘‘(D) REALLOTMENT.—Whenever the Sec-
retary determines that an institution of higher 
education is unable to utilize all of the amounts 
made available to it under this subpart, the 
Secretary shall, on such dates during the fiscal 
year as the Secretary may determine, reallocate 
such unused amounts to institutions which
575 
•HR 4137 EH2S 
demonstrate that they can use any reallocated 
grant funds to make fellowship awards to quali-
fied individuals under this subpart. 
‘‘(c) APPLICATIONS.— 
‘‘(1) APPLICATIONS
REQUIRED.—Any eligible 
institution of higher education offering a program of 
post baccalaureate study leading to a graduate de-
gree that meets the purpose of this subpart may 
apply for a grant. Each such institution, or consor-
tium of eligible institutions (including those institu-
tions specified in subsection (b)(2)(B)) may make an 
application to the Secretary at such time, in such 
manner, and containing or accompanied by such in-
formation as the Secretary may reasonably require. 
‘‘(2) SELECTION OF APPLICATIONS.—In select-
ing applications for the making grants to institu-
tions of higher education, the Secretary shall— 
‘‘(A) take into account the number and 
distribution of minority and female faculty na-
tionally, as well as the current and projected 
need for highly trained individuals— 
‘‘(i) in all areas of the higher edu-
cation professoriate; and 
‘‘(ii) in academic career fields in 
which minorities and women are underrep-
576 
•HR 4137 EH2S 
resented in the higher education professo-
riate; and 
‘‘(B) consider the need to prepare a larger 
number of minorities and women generally in 
academic career fields of high national priority, 
especially in areas in which such individuals are 
traditionally underrepresented in college and 
university faculties. 
‘‘(d) FELLOWSHIP TERMS AND CONDITIONS.— 
‘‘(1) SELECTION OF FELLOWS.— 
‘‘(A) ELIGIBLE
APPLICANTS.—The Sec-
retary shall assure that, in awarding fellowships 
from funds made available under this subpart, 
grantee institutions make fellowship awards to 
individuals who plan to pursue a career in in-
struction at any institution of higher education 
that is eligible to participate in title IV pro-
grams. 
‘‘(B) 
ACADEMIC
PROGRESS.—Notwith-
standing subparagraph (A), no otherwise eligi-
ble student selected for support shall receive a 
fellowship award— 
‘‘(i) during periods in which such stu-
dent is enrolled, unless such student is 
maintaining satisfactory academic progress
577 
•HR 4137 EH2S 
in, and devoting full-time to, study or re-
search in the pursuit of the degree for 
which the fellowship support was awarded; 
or 
‘‘(ii) if the student is engaged in gain-
ful employment, other than part-time em-
ployment related to teaching, research, or 
a similar activity determined by the insti-
tution to be consistent with and supportive 
of the student’s progress toward the appro-
priate degree. 
‘‘(2) SERVICE REQUIREMENT.— 
‘‘(A) TEACHING REQUIRED.—Each Patsy 
T. Mink Graduate Fellow who earns the doc-
toral or terminal master’s degree with assist-
ance provided under this subpart shall teach at 
an eligible institution for one year for each year 
of fellowship assistance received under this sub-
part. 
‘‘(B) INSTITUTIONAL OBLIGATION.—Each 
institution which receives an award from the 
Secretary under this subpart shall provide an 
assurance that it has inquired of and deter-
mined the fellowship recipient’s decision to, 
within 3 years of receiving the doctorate or ter-
578 
•HR 4137 EH2S 
minal master’s degree, begin employment at an 
eligible institution of higher education as re-
quired by this subpart. 
‘‘(C) AGREEMENT
REQUIRED.—Prior to 
receiving the initial fellowship award, and upon 
the annual renewal of the fellowship award, a 
fellow shall sign an agreement with the Sec-
retary memorializing this commitment to enter 
the professoriate. 
‘‘(D) CONSEQUENCES OF FAILURE.—If a 
fellowship recipient fails to honor the service re-
quirement of this subsection, the Secretary 
shall— 
‘‘(i) require the individual to repay all 
or the applicable portion of the total fel-
lowship amount awarded to the individual 
by converting the balance due to a loan at 
the interest rate applicable to loans made 
under part B of title IV; or 
‘‘(ii) require the individual to pay an 
amount determined by the Secretary to be 
appropriate, except as provided in subpara-
graph (E). 
‘‘(E) MODIFIED SERVICE REQUIREMENT.— 
The Secretary may waive or modify the service
579 
•HR 4137 EH2S 
requirement of this paragraph based on regula-
tions, promulgated pursuant to and consistent 
with criteria which determine the circumstances 
under which compliance with the service obliga-
tion by the fellowship recipient would be inequi-
table and represent a substantial hardship. The 
Secretary may waive the service requirement 
if— 
‘‘(i) compliance by the fellowship re-
cipient would be deemed impossible be-
cause the individual is permanently and to-
tally disabled at the time of the waiver re-
quest; or 
‘‘(ii) compliance by the fellowship re-
cipient is based on documentation pre-
sented to the Secretary of substantial eco-
nomic or personal hardship, as determined 
in accordance with regulations prescribed 
by the Secretary. 
‘‘(3) AMOUNT OF FELLOWSHIP AWARDS.— 
‘‘(A) IN
GENERAL.—From the grants 
made pursuant to this subpart, eligible institu-
tions shall award stipends to individuals who 
are awarded fellowships under this subpart. 
Such stipends shall reflect the purpose of the
580 
•HR 4137 EH2S 
program authorized by this subpart to encour-
age highly qualified minorities and women to 
pursue graduate study for the purpose of enter-
ing the higher education professoriate. 
‘‘(B) AWARDS BASED ON NEED.—Stipends 
shall be in an amount equal to the level of sup-
port provided by the National Science Founda-
tion graduate fellowships, except that such sti-
pend shall be adjusted as necessary so as not 
to exceed the fellow’s demonstrated need as de-
termined by the institution of higher education 
where the graduate student is enrolled. 
‘‘(4) INSTITUTIONAL PAYMENTS.— 
‘‘(A) IN GENERAL.—The Secretary shall, 
in addition to the amounts made available to in-
stitutions for stipends to individuals under this 
subpart, pay to grantee institutions of higher 
education, for each individual awarded a fellow-
ship under this subpart at such institution, an 
institutional allowance. Except as provided for 
in subparagraph (C), such allowance shall be, 
for academic year 2009–2010 and succeeding 
academic years, the same as the institutional 
payment made for that year under the Grad-
uate Assistance in Areas of National Need pro-
581 
•HR 4137 EH2S 
gram in subpart 2 of part A, and shall be ad-
justed annually thereafter in accordance with 
inflation as determined by the Department of 
Labor’s Consumer Price Index for All Urban 
Consumers for the previous calendar year. 
‘‘(B) USE OF FUNDS.—Institutional pay-
ments may be expended at the discretion of the 
institution, except that such funds shall be used 
to provide academic support and career transi-
tion services for participating fellows. 
‘‘(C) REDUCTION.—The institutional al-
lowance paid under subparagraph (A) shall be 
reduced by the amount the institution charges 
and collects from a fellowship recipient for tui-
tion and other expenses as part of the institu-
tion’s instructional program. 
‘‘(D) USE FOR OVERHEAD PROHIBITED.— 
Funds made available pursuant to this subpart 
may not be used for general operational over-
head of the academic department or institution 
receiving such funds. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to appropriated to carry out this subpart 
such sums as may be necessary for fiscal year 2009 and 
for each of the 4 succeeding fiscal years.’’.
582 
•HR 4137 EH2S 
SEC. 705. MASTERS DEGREES PROGRAMS AT HISTORI-
CALLY BLACK COLLEGES AND UNIVERSITIES 
AND OTHER MINORITY SERVING INSTITU-
TIONS. 
Part A of title VII (20 U.S.C. 1134) is further 
amended by inserting after subpart 4 (as added by section 
704 of this Act) the following subpart: 
‘‘Subpart 5—Masters Degrees Programs at Histori-
cally Black Colleges and Universities and Other 
Minority Serving Institutions 
‘‘SEC. 723. GRANTS TO ACADEMIC DEPARTMENTS AND PRO-
GRAMS AT ELIGIBLE INSTITUTIONS. 
‘‘(a) GRANT AUTHORITY.— 
‘‘(1) IN GENERAL.—From the amounts appro-
priated under subsection (g), the Secretary shall 
make grants to graduate academic departments, pro-
grams, and other academic units at historically 
Black colleges and universities and other minority- 
serving institutions that provide qualified courses of 
study leading to a degree in a qualified masters de-
gree program described in subsection (d)(1)(B). 
Such grants shall be used to make fellowship awards 
to eligible students and may be combined with 
matching grants from non-Federal sources to 
strengthen qualified masters degree programs.
583 
•HR 4137 EH2S 
‘‘(2) ADDITIONAL GRANTS.—From the amounts 
appropriated under subsection (g), The Secretary 
may also make grants to consortia and cooperative 
arrangements among eligible institutions that submit 
joint proposals, and have formal arrangements de-
signed to fulfill the purposes of this subpart. 
‘‘(b) AWARD AND DURATION OF GRANTS.— 
‘‘(1) AWARDS.—The Secretary shall make 
awards to institutions that are eligible under sub-
section (d) and that submit an application to the 
Secretary in accordance with subsection (c). Awards 
shall be based on the following criteria: 
‘‘(A) The number of students enrolled in 
the masters degree program. 
‘‘(B) The number of students who earned 
such degrees in the previous year from the pro-
gram for which the eligible institution is seek-
ing funds. 
‘‘(C) The average cost of education per 
student, for all full-time masters degree stu-
dents enrolled in the qualified masters degree 
program. 
‘‘(D) The quality of the academic program 
at the institution.
584 
•HR 4137 EH2S 
‘‘(E) The quality of the application sub-
mitted by the institution or consortium. 
‘‘(2) DURATION AND AMOUNT.— 
‘‘(A) DURATION.—The Secretary shall 
award a grant under this subpart for a period 
of 5 years, which may be renewed for an addi-
tional 5 years consistent with subsection (c). 
‘‘(B) AMOUNT.—The Secretary shall award 
a grant to an academic department, program, 
or consortium at an eligible institution of higher 
education under this subpart for a fiscal year in 
an amount that is not less than $100,000, and 
not greater than $750,000. 
‘‘(c) APPLICATION.— 
‘‘(1) CONTENTS OF APPLICATIONS.—An institu-
tion that is eligible under subsection (d) that seeks 
a grant under this subpart shall submit an applica-
tion to the Secretary at such time, in such manner, 
and accompanied by such information as the Sec-
retary may require. The application shall include— 
‘‘(A) a description of the qualified masters 
degree program or programs that the institu-
tion intends to provide fellowship awards to, in-
cluding the number of student awards to be 
made;
585 
•HR 4137 EH2S 
‘‘(B) a budget describing the amount of 
the fellowship awards to students for 2 succes-
sive academic years, based on the academic 
progress of such students and the cost of at-
tendance at the eligible institution, except that 
in no instance shall a graduate student receive 
a fellowship in excess of the award level pro-
vided for such students by the National Science 
Foundation; 
‘‘(C) a budget for stipends to students who 
are awarded fellowships under this subpart in 
order to encourage highly qualified students to 
pursue graduate study for the purposes de-
scribed in this part; and 
‘‘(D) a description of activities to be un-
dertaken with institutional, private foundation, 
or State matching funds that will be used to 
contribute to the increased production of minor-
ity masters degree candidates. 
‘‘(2) PREFERENCE TO CONTINUING GRANT RE-
CIPIENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make initial grant awards consistent with the 
criteria in subsection (b)(1), and shall renew 
such awards if the grantee demonstrates suc-
586 
•HR 4137 EH2S 
cess in satisfying the criteria in subparagraphs 
(A) and (B) of such subsection by increasing 
the number of African Americans and other mi-
norities earning masters degrees at the institu-
tion based on benchmarks established by the 
Secretary. 
‘‘(B) RATABLE
REDUCTION.—To the ex-
tent that appropriations are insufficient to com-
ply with subparagraph (A) and subsection 
(b)(2)(B), available funds shall be distributed 
by ratably reducing the amounts required to be 
awarded under subsection (b)(2)(B). 
‘‘(d) INSTITUTIONAL ELIGIBILITY.— 
‘‘(1) 
QUALIFIED
MASTERS
DEGREE
PRO-
GRAMS.— 
‘‘(A) IN GENERAL.—To be eligible to apply 
for a grant under this part, an applicant shall 
be an academic department, program, or unit at 
an institution of higher education that is within 
the meaning of the term ‘part B institution’ as 
defined in section 322(2), that offers a qualified 
masters degree program, and that is specifically 
enumerated in paragraph (2), or a consortium 
of such institutions.
587 
•HR 4137 EH2S 
‘‘(B) QUALIFIED MASTERS DEGREE PRO-
GRAM.—For purposes of this subpart, the term 
‘qualified masters degree program’ means a 
program of study leading to a masters degree 
in the physical or natural sciences, mathe-
matics, engineering, computer science, informa-
tion technology, nursing, allied health, or re-
lated scientific or health field identified by the 
Secretary. 
‘‘(C) LIMITATION.—No department, pro-
gram, or unit shall be eligible to apply unless 
the qualified masters degree program has been 
in existence and awarded such degrees for at 
least four years. 
‘‘(2) ENUMERATED
INSTITUTIONS.—For pur-
poses of paragraph (1)(A), the institutions enumer-
ated in this paragraph are— 
‘‘(A) Albany State University; 
‘‘(B) Alcorn State University; 
‘‘(C) Chicago State University; 
‘‘(D) Columbia Union College; 
‘‘(E) Coppin State University; 
‘‘(F) Elizabeth City State University; 
‘‘(G) Fayetteville State University; 
‘‘(H) Fisk University;
588 
•HR 4137 EH2S 
‘‘(I) Fort Valley State University; 
‘‘(J) Grambling State University; 
‘‘(K) Kentucky State University; 
‘‘(L) Long Island University, Brooklyn 
campus; 
‘‘(M) Mississippi Valley State University; 
‘‘(N) Robert Morris College; 
‘‘(O) Savannah State University; 
‘‘(P) South Carolina State University; 
‘‘(Q) University of Arkansas, Pine Bluff; 
‘‘(R) Virginia State University; 
‘‘(S) West Virginia Sate University; 
‘‘(T) Winston-Salem State University; and 
‘‘(U) York College, The City University of 
New York. 
‘‘(3) LIMITATION.—No institution that is eligi-
ble for and receives an award under section 326 for 
a fiscal year shall be eligible to apply for, or receive 
funds under this subpart for the same fiscal year. 
‘‘(e) MATCHING FUNDS RULE.—Each eligible insti-
tution or consortium that receives an award under this 
subpart, may elect to use up to 25 percent of the total 
grant to carry out activities designed to strengthen its 
qualified masters degree program. An institution that 
elects to use funds for strengthening a qualified masters
589 
•HR 4137 EH2S 
degree program shall provide an equal amount for such 
purpose from institutional, private foundation, or State 
sources. Matching funds must supplement, not supplant, 
existing resources available at the time of the Secretary’s 
award. 
‘‘(f) USES OF FUNDS.—Funds made available under 
this section shall be used in accordance with the applica-
tion under subsection (c). 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated $25,000,000 for fiscal 
year 2009 and such sums as may be necessary for each 
of the 4 succeeding fiscal years.’’. 
SEC. 706. FUND FOR THE IMPROVEMENT OF POSTSEC-
ONDARY EDUCATION. 
(a) CONTRACT
AND GRANT PURPOSES.—Section 
741(a) (20 U.S.C. 1138(a)) is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) the encouragement of the reform and im-
provement of, and innovation in, postsecondary edu-
cation and the provision of educational opportunity 
for all, especially for the non-traditional student pop-
ulations;’’; 
(2) in paragraph (2), by inserting before the 
semicolon at the end the following: ‘‘for postsec-
590 
•HR 4137 EH2S 
ondary students, especially institutions, programs, 
and joint efforts that provide academic credit for 
programs’’; 
(3) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) the establishment of institutions and pro-
grams based on the technology of communications, 
including delivery by distance education;’’; 
(4) by amending paragraph (6) to read as fol-
lows: 
‘‘(6) the introduction of institutional reforms 
designed to expand individual opportunities for en-
tering and reentering postsecondary institutions and 
pursuing programs of postsecondary study tailored 
to individual needs;’’; 
(5) by striking ‘‘and’’ at the end of paragraph 
(7); 
(6) by striking the period at the end of para-
graph (8) and inserting a semicolon; and 
(7) by adding at the end the following new 
paragraphs: 
‘‘(9) the assessment, in partnership with a pub-
lic or private nonprofit institution or agency, of the 
performance of teacher preparation programs within 
institutions of higher education in a State, using an
591 
•HR 4137 EH2S 
assessment which provides comparisons across such 
institutions within the State based upon indicators 
including teacher candidate knowledge in subject 
areas in which such candidate has been prepared to 
teach; 
‘‘(10) the support of efforts to establish pilot 
programs and initiatives to help college campuses re-
duce illegal downloading of copyrighted content, in 
order to improve the security and integrity of cam-
pus computer networks and save bandwidth costs; 
‘‘(11) the support of increased fire safety in 
student housing— 
‘‘(A) by establishing a demonstration in-
centive program for qualified student housing in 
institutions of higher education; 
‘‘(B) by making grants for the purpose of 
installing fire alarm detection, prevention, and 
protection technologies in student housing, dor-
mitories, and other buildings controlled by such 
entities; and 
‘‘(C) by requiring, as a condition of such 
grants— 
‘‘(i) that such technologies be installed 
professionally to technical standards of the 
National Fire Protection Association; and
592 
•HR 4137 EH2S 
‘‘(ii) that the recipient shall provide 
non-Federal matching funds in an amount 
equal to the amount of the grant; 
‘‘(12) the assessment, in partnership with a 
consortium of higher education organizations, of the 
feasibility and potential design of an inter-institution 
monitoring organization on gender and racial equal-
ity in campus faculty and administration; 
‘‘(13) the provision of support and assistance to 
partnerships between institutions of higher education 
and secondary schools with at least 10 percent of 
their enrollment assessed as late-entering limited 
English proficient students to establish programs 
that result in increased secondary school graduation 
rates of limited English proficient students and that 
increase the number of eligible late-entering limited 
English proficient students who pursue postsec-
ondary education opportunities; 
‘‘(14) the provision of support and assistance 
for demonstration projects to provide comprehensive 
support services to ensure that homeless students, or 
students who were in foster care until the age of 18, 
enroll and succeed in postsecondary education, in-
cluding providing housing to such students during 
periods when housing at the institution of higher
593 
•HR 4137 EH2S 
education is closed or generally unavailable to other 
students; 
‘‘(15) the support of efforts to work with orga-
nizations that are exempt from taxation under sec-
tion 501(c)(3) of the Internal Revenue Code of 1986 
and institutions of higher education that seek to pro-
mote cultural diversity in the entertainment media 
industry including through the training of students 
in production, marketing, and distribution of cul-
turally relevant content; and 
‘‘(16) the creation of consortia that join diverse 
institutions of higher education to design and offer 
curricular and co-curricular interdisciplinary pro-
grams at the undergraduate and graduate levels, 
sustained for not less than a 5 year period, that— 
‘‘(A) focus on poverty and human capa-
bility; and 
‘‘(B) include— 
‘‘(i) a service-learning component; and 
‘‘(ii) the delivery of educational serv-
ices through informational resource cen-
ters, summer institutes, mid-year seminars, 
and other educational activities that stress 
the effects of poverty and how poverty can
594 
•HR 4137 EH2S 
be alleviated through different career 
paths.’’. 
(b) SCHOLARSHIP PROGRAM FOR FAMILY MEMBERS 
OF VETERANS OR MEMBERS OF THE MILITARY; CENTER 
FOR BEST PRACTICES TO SUPPORT SINGLE PARENT 
STUDENTS.—Section 741 (20 U.S.C. 1138) is further 
amended by adding at the end the following new sub-
sections: 
‘‘(c) SCHOLARSHIP PROGRAM FOR FAMILY MEMBERS 
OF VETERANS OR MEMBERS OF THE MILITARY.— 
‘‘(1) AUTHORIZATION.—The Secretary shall 
contract with a nonprofit organization with dem-
onstrated experience in carrying out the activities 
described in this subsection to carry out a program 
to provide postsecondary education scholarships for 
eligible students. 
‘‘(2) ELIGIBLE STUDENTS.—In this subsection, 
the term ‘eligible student’ means an individual who 
is— 
‘‘(A)(i) a dependent student who is a child 
of— 
‘‘(I) an individual who is— 
‘‘(aa) serving on active duty dur-
ing a war or other military operation
595 
•HR 4137 EH2S 
or national emergency (as defined in 
section 481); or 
‘‘(bb) performing qualifying Na-
tional Guard duty during a war or 
other military operation or national 
emergency (as defined in section 481); 
or 
‘‘(II) a veteran who died while serving 
or performing, as described in subclause 
(I), since September 11, 2001, or has been 
disabled while serving or performing, as 
described in subclause (I), as a result of 
such event; or 
‘‘(ii) an independent student who— 
‘‘(I) is a spouse of an individual who 
is— 
‘‘(aa) serving on active duty dur-
ing a war or other military operation 
or national emergency (as defined in 
section 481); or 
‘‘(bb) performing qualifying Na-
tional Guard duty during a war or 
other military operation or national 
emergency (as defined in section 481); 
or
596 
•HR 4137 EH2S 
‘‘(II) was (at the time of the death of 
the veteran) a spouse of a veteran who 
died while serving or performing, as de-
scribed in subclause (I), since September 
11, 2001, or has been disabled while serv-
ing or performing, as described in sub-
clause (I), as a result of such event; and 
‘‘(B) enrolled as a full-time or part-time 
student at an institution of higher education (as 
defined in section 102). 
‘‘(3) AWARDING OF SCHOLARSHIPS.—Scholar-
ships awarded under this subsection shall be award-
ed based on need with priority given to eligible stu-
dents who are eligible to receive Federal Pell Grants 
under subpart 1 of part A of title IV. 
‘‘(4) MAXIMUM
SCHOLARSHIP
AMOUNT.—The 
maximum scholarship amount awarded to an eligible 
student under this subsection for an academic year 
shall be $5,000. 
‘‘(5) AMOUNTS FOR SCHOLARSHIPS.—All of the 
amounts appropriated to carry out this subsection 
for a fiscal year shall be used for scholarships 
awarded under this subsection, except that a non-
profit organization receiving a contract under this
597 
•HR 4137 EH2S 
subsection may use not more than 1 percent of such 
amounts for the administrative costs of the contract. 
‘‘(d) CENTER FOR BEST PRACTICES TO SUPPORT 
SINGLE PARENT STUDENTS.— 
‘‘(1) PROGRAM AUTHORIZED.—The Secretary is 
authorized to award 1 grant or contract to an insti-
tution of higher education to enable such institution 
to establish and maintain a center to study and de-
velop best practices for institutions of higher edu-
cation to support single parents who are also stu-
dents attending such institutions. 
‘‘(2) INSTITUTION REQUIREMENTS.—The Sec-
retary shall award the grant or contract under this 
subsection to a 4-year institution of higher education 
that has demonstrated expertise in the development 
of programs to assist single parents who are stu-
dents at institutions of higher education, as shown 
by the institution’s development of a variety of tar-
geted services to such students, including on-campus 
housing, child care, counseling, advising, internship 
opportunities, financial aid, and financial aid coun-
seling and assistance. 
‘‘(3) CENTER ACTIVITIES.—The center funded 
under this section shall—
598 
•HR 4137 EH2S 
‘‘(A) assist institutions implementing inno-
vative programs that support single parents 
pursuing higher education; 
‘‘(B) study and develop an evaluation pro-
tocol for such programs that includes quan-
titative and qualitative methodologies; 
‘‘(C) provide appropriate technical assist-
ance regarding the replication, evaluation, and 
continuous improvement of such programs; and 
‘‘(D) develop and disseminate best prac-
tices for such programs.’’. 
(c) PROHIBITION.—Section 741 is further amended 
by adding after subsection (d) (as added by subsection (b) 
of this section) the following new subsection: 
‘‘(e) PROHIBITION.—No funds made available under 
this part may be used to provide financial assistance— 
‘‘(1) to students who do not meet the require-
ments of section 484(a)(5); or 
‘‘(2) to any institution of higher education after 
the date of enactment of this subsection unless the 
institution demonstrates to the Secretary that the 
institution meets or exceeds the most current version 
of ASHRAE/IES Standard 90.1 (as such term is 
used in section 342(a)(6) of the Energy Policy and 
Conservation Act (42 U.S.C. 6313(a)(6)) for any
599 
•HR 4137 EH2S 
new facilities construction or major renovation of 
that institution after that date, except that this 
paragraph shall not apply with respect to barns or 
greenhouses or similar structures owned by the insti-
tution.’’. 
(d) TECHNICAL AMENDMENTS.—Part B of title VII 
(20 U.S.C. 1038 et seq.) is further amended— 
(1) in section 742 (20 U.S.C. 1138a)— 
(A) in subsection (b)— 
(i) by striking ‘‘(1) IN GENERAL.—’’; 
and 
(ii) by striking paragraph (2); 
(B) in subsection (c), by striking ‘‘and the 
Director’’ each place it appears; and 
(C) in subsection (d), by striking ‘‘Direc-
tor’’ and inserting ‘‘Secretary’’; 
(2) in section 743 (20 U.S.C. 1138b)— 
(A) by striking ‘‘(a) TECHNICAL EMPLOY-
EES.—’’; and 
(B) by striking subsection (b); and 
(3) in section 744(a) (20 U.S.C. 1138c(a)), by 
striking ‘‘Director’’ each place it appears and insert-
ing ‘‘Secretary’’.
600 
•HR 4137 EH2S 
(e) AREAS OF NATIONAL NEED.—Section 744(c) (20 
U.S.C. 1138c(c)) is amended by adding at the end the 
following: 
‘‘(5) Establishment of academic programs in-
cluding graduate and undergraduate courses, semi-
nars and lectures, support of research, and develop-
ment of teaching materials for the purpose of sup-
porting faculty and academic programs that teach 
traditional American history (including significant 
constitutional, political, intellectual, economic, diplo-
matic, and foreign policy trends, issues, and docu-
ments; the history, nature, and development of 
democratic institutions of which American democ-
racy is a part; and significant events and individuals 
in the history of the United States). 
‘‘(6) Establishment of centers to incorporate 
education in quality and safety into the preparation 
of medical and nursing students, through grants to 
medical schools, nursing schools, and osteopathic 
schools. Such grants shall be used to assist in pro-
viding courses of instruction that specifically equip 
students to understand the causes and remedies for 
medical error, medically-induced patient injuries and 
complications, and other defects in medical care; en-
gage effectively in personal and systemic efforts to
601 
•HR 4137 EH2S 
continually reduce medical harm; and improve pa-
tient care and outcomes, as recommended by the In-
stitute of Medicine.’’. 
(f) AUTHORIZATION OF APPROPRIATIONS.—Section 
745 (20 U.S.C. 1138d) is amended by striking 
‘‘$30,000,000 for fiscal year 1999’’ and inserting 
‘‘$40,000,000 for fiscal year 2009’’. 
SEC. 707. URBAN-SERVING RESEARCH UNIVERSITIES. 
Part C of title VII (20 U.S.C. 1139 et seq.) is amend-
ed to read as follows: 
‘‘PART C—URBAN-SERVING RESEARCH 
UNIVERSITIES 
‘‘SEC. 751. PURPOSE; PROGRAM AUTHORIZED. 
‘‘(a) PURPOSE.—It is the purpose of this part to pro-
vide incentives to urban-serving research universities to 
enable such universities to expand research knowledge and 
to develop and implement initiatives in partnership with 
community-based organizations and other public or non-
profit private entities to strengthen city economies, foster 
innovation and opportunity, and solve urban challenges. 
‘‘(b) PROGRAM AUTHORIZED.—The Secretary is au-
thorized to award grants to urban-serving research univer-
sities to enable such universities to carry out the activities 
described in section 753 in accordance with the provisions 
of this part.
602 
•HR 4137 EH2S 
‘‘SEC. 752. APPLICATION FOR URBAN-SERVING RESEARCH 
UNIVERSITY GRANTS. 
‘‘(a) APPLICATION.—An urban-serving research uni-
versity seeking assistance under this part shall submit to 
the Secretary an application at such time, in such manner, 
and containing such information as the Secretary may rea-
sonably require. 
‘‘(b) PRIORITY IN SELECTION OF APPLICATIONS.— 
The Secretary shall give priority to applications that pro-
pose to conduct joint projects supported by Federal, State, 
and local programs other than the program under this 
Act. In addition, the Secretary shall give priority to urban- 
serving research universities with a demonstrated record 
of effective engagement in serving the communities in 
which such universities are located. 
‘‘SEC. 753. ALLOWABLE ACTIVITIES. 
‘‘An urban-serving research university shall use funds 
awarded under this part to further develop and apply re-
search findings to the development, implementation, and 
ongoing evaluation of— 
‘‘(1) systemic initiatives with elementary and 
secondary schools and other educational organiza-
tions designed to— 
‘‘(A) improve teacher quality and reten-
tion; or
603 
•HR 4137 EH2S 
‘‘(B) develop strategies to improve postsec-
ondary and workplace readiness, particularly in 
fields related to science, technology, engineer-
ing, and mathematics; 
‘‘(2) innovative economic revitalization efforts 
in conjunction with community-based organizations 
and other public or nonprofit private entities; or 
‘‘(3) public health outreach, education, and 
intervention activities designed to reduce health dis-
parities in urban areas, in partnership with commu-
nity-based organizations and other public or non-
profit private entities. 
‘‘SEC. 754. DEFINITIONS. 
‘‘As used in this part: 
‘‘(1) URBAN
AREA.—The term ‘urban area’ 
means a city with a population of not less than 
200,000 within a metropolitan statistical area. 
‘‘(2) 
URBAN-SERVING
RESEARCH
UNIVER-
SITY.—The term ‘urban-serving research university’ 
means a public institution of higher education 
that— 
‘‘(A) meets the requirements of section 
101; 
‘‘(B) is located in an urban area;
604 
•HR 4137 EH2S 
‘‘(C) has the capacity to conduct applicable 
research, as demonstrated by awarding more 
than 10 doctoral degrees per academic year; 
‘‘(D) draws a substantial portion of its stu-
dents from the urban area in which such insti-
tution is located; and 
‘‘(E) has demonstrated and sustained a 
sense of responsibility to such urban area and 
the people of such area. 
‘‘SEC. 755. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this part $50,000,000 for fiscal year 2009 and such sums 
as may be necessary for each of the 4 succeeding fiscal 
years.’’. 
SEC. 708. PROGRAMS TO ENSURE STUDENTS WITH DISABIL-
ITIES RECEIVE A QUALITY HIGHER EDU-
CATION. 
(a) SERVING ALL STUDENTS WITH DISABILITIES.— 
Section 762(a) (20 U.S.C. 1140a(a)) is amended by strik-
ing ‘‘students with learning disabilities’’ and inserting 
‘‘students with disabilities’’. 
(b) AUTHORIZED ACTIVITIES.— 
(1) AMENDMENT.—Section 762(b)(2) is amend-
ed— 
(A) in subparagraph (A)—
605 
•HR 4137 EH2S 
(i) by inserting ‘‘, including methods 
and strategies consistent with the prin-
ciples of universal design for learning’’ 
after ‘‘strategies’’; and 
(ii) by inserting ‘‘in order to improve 
retention and completion’’ after ‘‘disabil-
ities’’; 
(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (F), respec-
tively; 
(C) by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) 
EFFECTIVE
TRANSITION
PRAC-
TICES.—The development of innovative, effec-
tive, and efficient teaching methods and strate-
gies to ensure the smooth transition of students 
with disabilities from high school to postsec-
ondary education.’’; and 
(D) by inserting after subparagraph (C) 
(as redesignated by subparagraph (B) of this 
paragraph) the following new subparagraphs: 
‘‘(D) DISTANCE LEARNING.—The develop-
ment of innovative, effective, and efficient 
teaching methods and strategies to provide fac-
ulty and administrators with the ability to pro-
606 
•HR 4137 EH2S 
vide accessible distance education programs or 
classes that would enhance access of students 
with disabilities to higher education, including 
the use of accessible electronic communication 
for instruction and advisement. 
‘‘(E) ACCESSIBILITY
OF
EDUCATION.— 
Making postsecondary education more acces-
sible to students with disabilities through the 
use of accessible instructional materials and 
curriculum development, consistent with the 
principles of universal design for learning.’’. 
(2) REPORT.—Section 762 is further amended 
by adding at the end the following new subsection: 
‘‘(d) REPORT.—Not later than 3 years after the date 
of enactment of the College Opportunity and Affordability 
Act of 2008, the Secretary shall prepare and disseminate 
a report reviewing the activities of the demonstration 
projects authorized under this subpart and providing guid-
ance and recommendations on how successful projects can 
be replicated.’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
762(b)(3) is amended by striking ‘‘subparagraphs 
(A) through (C)’’ and inserting ‘‘subparagraphs (A) 
through (F)’’.
607 
•HR 4137 EH2S 
(c) APPLICATIONS.—Section 763 (20 U.S.C. 1140b) 
is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) a description of how such institution plans 
to address the activities allowed under this sub-
part;’’; 
(2) in paragraph (2)— 
(A) by striking ‘‘institution to develop’’ 
and inserting ‘‘institution, including students 
with disabilities, to develop’’; and 
(B) by striking ‘‘and’’ at the end; 
(3) by striking the period at the end of para-
graph (3) and inserting ‘‘; and’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(4) a description of the extent to which an in-
stitution will work to replicate the best practices of 
institutions of higher education with demonstrated 
success in serving students with disabilities.’’. 
(d) AUTHORIZATION OF APPROPRIATIONS FOR DEM-
ONSTRATION PROJECTS TO ENSURE STUDENTS WITH 
DISABILITIES
RECEIVE
A
QUALITY
HIGHER
EDU-
CATION.—Section 765 (20 U.S.C. 1140d) is amended by 
striking ‘‘1999’’ and inserting ‘‘2009’’.
608 
•HR 4137 EH2S 
(e) NATIONAL TECHNICAL ASSISTANCE CENTER; 
COMMISSION ON ACCESSIBLE MATERIALS; PROGRAMS TO 
SUPPORT IMPROVED ACCESS TO MATERIALS; TRANSITION 
PROGRAMS FOR STUDENTS WITH INTELLECTUAL DIS-
ABILITIES; COORDINATING CENTER.—Part D of title VII 
(20 U.S.C. 1140 et seq.) is further amended— 
(1) in the part heading, by striking ‘‘DEM-
ONSTRATION
PROJECTS’’ and inserting ‘‘PRO-
GRAMS’’; 
(2) by inserting after the part heading the fol-
lowing: 
‘‘Subpart 1—Quality Higher Education’’; 
and 
(3) by adding at the end the following: 
‘‘Subpart 2—National Technical Assistance Center; 
Commission on Accessible Materials; Programs 
to Support Improved Access to Materials 
‘‘SEC. 766. NATIONAL CENTER. 
‘‘(a) PURPOSE.—It is the purpose of this subpart to 
support the development of a national center to provide 
information and technical assistance for students with dis-
abilities to improve the postsecondary recruitment, reten-
tion, and completion success rates of such students. 
‘‘(b) ESTABLISHMENT AND SUPPORT.—The Office of 
Postsecondary Education shall, by grant, contract, or co-
609 
•HR 4137 EH2S 
operative agreement with an eligible entity or partnership 
of two or more eligible entities, provide for the establish-
ment and support of a National Center for Information 
and Technical Support for Postsecondary Students with 
Disabilities (hereinafter in this subpart referred to as the 
‘Center’) which shall carry out the duties set forth in sub-
section (d). 
‘‘(c) ELIGIBLE ENTITY.—In this subpart, the term 
‘eligible entity’ means an institution of higher education 
or a private nonprofit organization with demonstrated ex-
pertise in— 
‘‘(1) supporting postsecondary students with 
disabilities; 
‘‘(2) technical knowledge necessary for the ac-
cessible dissemination of information; and 
‘‘(3) working with a diverse range of types of 
institutions of higher education, including commu-
nity colleges. 
‘‘(d) DUTIES.—The duties of the Center shall include 
the following: 
‘‘(1) ASSISTANCE
TO
STUDENTS
AND
FAMI-
LIES.—The Center shall provide information and 
technical assistance to students with disabilities and 
their families related to practices supporting stu-
612 
•HR 4137 EH2S 
with disabilities. Such database and website shall in-
clude available information on— 
‘‘(A) disability documentation require-
ments; 
‘‘(B) support services available; 
‘‘(C) links to financial aid; 
‘‘(D) accommodations policies; 
‘‘(E) accessible instructional materials; 
‘‘(F) other topics relevant to students with 
disabilities and prospective students with dis-
abilities; and 
‘‘(G) the information in the report de-
scribed in paragraph (5). 
‘‘(4) PROFESSIONAL
STANDARDS
FOR
DIS-
ABILITY
SUPPORT
PERSONNEL.—The Center shall 
work with organizations and individuals with proven 
expertise related to disability support services for 
postsecondary students with disabilities to consoli-
date, evaluate, improve upon, and disseminate infor-
mation related to professional standards and best 
practices for disability support services personnel 
and offices in institutions of higher education. 
‘‘(5) REVIEW AND REPORT.—Not later than 3 
years after the establishment of the Center, and 
every 2 years thereafter, the Center shall prepare
613 
•HR 4137 EH2S 
and disseminate a report to Congress and the Sec-
retary analyzing the current condition of postsec-
ondary success for students with disabilities. Such 
report shall include— 
‘‘(A) a review of the activities of the pro-
grams authorized under this part; 
‘‘(B) annual enrollment and graduation 
rates of students with disabilities in institutions 
of higher education from existing data; 
‘‘(C) guidance on how successful postsec-
ondary supports and services for students with 
disabilities could be widely implemented at in-
stitutions of higher education; 
‘‘(D) guidance on how to reduce barriers to 
full participation for students with disabilities 
in higher education; and 
‘‘(E) a description of activities necessary to 
facilitate a substantial improvement in the post-
secondary success of such students. 
‘‘(e) STAFFING OF THE CENTER.—The Center shall 
employ disability support personnel with proven expertise 
in providing training and technical assistance to practi-
tioners.
614 
•HR 4137 EH2S 
‘‘SEC. 766A. ESTABLISHMENT OF ADVISORY COMMISSION 
ON ACCESSIBLE INSTRUCTIONAL MATERIALS 
IN POSTSECONDARY EDUCATION FOR STU-
DENTS WITH DISABILITIES. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a commission to be known as the Advisory Com-
mission on Accessible Instructional Materials in 
Postsecondary Education for Students with Disabil-
ities, in this subpart referred to as the ‘Commission’. 
‘‘(2) MEMBERSHIP.— 
‘‘(A) The Commission shall include one 
representative of each of the following: 
‘‘(i) Department of Education Office 
of Postsecondary Education. 
‘‘(ii) Department of Education Office 
of Special Education and Rehabilitative 
Services. 
‘‘(iii) Department of Education Office 
for Civil Rights. 
‘‘(iv) Library of Congress National 
Digital Information and Infrastructure 
Preservation Program Copyright Working 
Group. 
‘‘(v) Association on Higher Education 
and Disability.
615 
•HR 4137 EH2S 
‘‘(vi) Association of American Pub-
lishers. 
‘‘(vii) Association of American Univer-
sity Presses. 
‘‘(viii) National Association of College 
Stores. 
‘‘(ix) National Council on Disability. 
‘‘(B) The Commission shall be composed of 
at least one but not more than two representa-
tives, as appointed by the Secretary, of each of 
the following: 
‘‘(i) Staff from institutions of higher 
education with demonstrated experience 
teaching or supporting students with print 
disabilities, representing each of the fol-
lowing: 
‘‘(I) Large public institution of 
higher education. 
‘‘(II) Small public institution of 
higher education. 
‘‘(III) Large private institution 
of higher education. 
‘‘(IV) Small private institution of 
higher education. 
‘‘(V) Large community college.
616 
•HR 4137 EH2S 
‘‘(VI) Small community college. 
‘‘(ii) Producers of materials in special-
ized formats, including each of the fol-
lowing: 
‘‘(I) Braille. 
‘‘(II) 
Audio 
or 
synthesized 
speech. 
‘‘(III) Digital media. 
‘‘(iii) Developers of accessibility and 
publishing software and supporting tech-
nologies. 
‘‘(iv) National organizations serving 
individuals with visual impairments that 
have demonstrated experience in tech-
nology evaluation research, academic pub-
lishing, production of material in accessible 
formats, and educational methodologies for 
such for individuals. 
‘‘(v) Postsecondary students with vis-
ual impairment. 
‘‘(vi) Postsecondary students with 
dyslexia or other learning disabilities re-
lated to reading. 
‘‘(vii) Attorneys with expertise in 
copyright law.
617 
•HR 4137 EH2S 
‘‘(C) The Commission shall include at least 
two, but not more than three, representatives as 
appointed by the Secretary, of national mem-
bership organizations representing individuals 
with print disabilities, including each of the fol-
lowing: 
‘‘(i) Individuals with visual impair-
ments. 
‘‘(ii) Individuals with learning disabil-
ities related to reading. 
‘‘(D) The appointments of the members of 
the Commission shall be made not later than 45 
days after the date of enactment of the College 
Opportunity and Affordability Act of 2008. 
‘‘(3) PERIOD OF APPOINTMENT; VACANCIES.— 
Members shall be appointed for the life of the Com-
mission. Any vacancy in the Commission shall not 
affect its powers, but shall be filled in the same 
manner as the original appointment. 
‘‘(4) INITIAL
MEETING.—Not later than 30 
days after the date on which all members of the 
Commission have been appointed, the Commission 
shall hold the Commission’s first meeting. 
‘‘(5) MEETINGS.—The Commission shall meet 
at the call of the Chairperson. Meetings shall be
618 
•HR 4137 EH2S 
publicly announced in advance and open to the pub-
lic. 
‘‘(6) QUORUM.—A majority of the members of 
the Commission shall constitute a quorum, but a 
lesser number of members may hold hearings. 
‘‘(7) CHAIRPERSON AND VICE CHAIRPERSON.— 
The Commission shall select a chairperson and vice 
chairperson from among the members of the Com-
mission. 
‘‘(b) DUTIES OF THE COMMISSION.— 
‘‘(1) STUDY.— 
‘‘(A) IN GENERAL.—The Commission shall 
conduct a thorough study to assess the barriers, 
systemic issues, and technical solutions avail-
able which may affect or improve the timely de-
livery and quality of accessible instructional ma-
terials for postsecondary students, faculty, and 
staff with print disabilities, and make rec-
ommendations related to the development of a 
comprehensive approach that will ensure that 
postsecondary students with print disabilities 
can access instructional materials in specialized 
formats in a timeframe comparable to the avail-
ability of standard instructional materials for 
students without disabilities.