366 
based on the expenses reasonably incurred by 
such students for board but not for room; and’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (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 current 
tax year minus estimated excludable income (as defined 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 inserting 
‘‘, except that the value of on-base military housing or the 
value of basic allowance for housing determined under sec-
tion 403(b) of title 37, United States Code, received by the 
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parents, in the case of a dependent student, or the student 
or student’s spouse, in the case of an independent student, 
shall be excluded’’ before the semicolon. 
(c) TREATMENT OF VETERANS’ EDUCATION BENEFITS 
IN ESTIMATED FINANCIAL ASSISTANCE CALCULATION.— 
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 vet-
erans’ education benefits that is treated as estimated finan-
cial assistance not received under this title for the purposes 
of section 471(3) shall be calculated by subtracting the 
amount that the student’s basic pay was reduced under sec-
tion 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.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section are effective on July 1, 2009. 
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 beginning 
of each award year, the Secretary shall provide to institu-
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tions of higher education a list of all the reports and disclo-
sures required under this Act. The list shall include— 
‘‘(1) the date each report or disclosure is required 
to be completed and to be submitted, made available, 
or disseminated; 
‘‘(2) the required recipients of each report or dis-
closure; 
‘‘(3) any required method for transmittal or dis-
semination 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, appli-
cable 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— 
(1) in subsection (a)— 
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(A) by striking paragraphs (1), (2), and 
(5); 
(B) by redesignating paragraphs (3), (4), 
(6), and (7), as paragraphs (9), (10), (11), and 
(12), respectively; 
(C) by inserting before paragraph (9), as 
redesignated by subparagraph (B), the following: 
‘‘(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 student 
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 con-
sumer-friendly and to make questions on the FAFSA 
easy for students and parents to read and under-
stand, and shall ensure that the FAFSA is available 
in formats accessible to individuals with disabilities. 
‘‘(2) EARLY ESTIMATES.—The Secretary shall— 
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‘‘(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 situ-
ations; 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.— 
‘‘(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 
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‘‘(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 edu-
cation, guaranty agencies, and States in ac-
cordance with paragraph (9). 
‘‘(v) TESTING.—The Secretary shall 
conduct appropriate field testing on the EZ 
FAFSA. 
‘‘(C) PROMOTING THE USE OF ELECTRONIC 
FAFSA.— 
‘‘(i) IN GENERAL.—The Secretary shall 
make all efforts to encourage all applicants 
to utilize the electronic forms described in 
paragraph (4). 
‘‘(ii) MAINTENANCE OF THE FAFSA IN 
A PRINTABLE ELECTRONIC FILE.—The Sec-
retary shall maintain a version of the paper 
forms described in subparagraphs (A) and 
(B) in a printable electronic file that is eas-
ily portable. The printable electronic file 
will 
be 
made 
easily 
accessible 
and 
downloadable to students on the same 
website used to provide students with the 
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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 Con-
gress on the impact of the digital divide on 
students completing applications for title IV 
aid described under this paragraph and 
paragraph (4). The Secretary will also re-
port on the steps taken to eliminate the dig-
ital divide and reduce production of the 
paper form described in subparagraph (A) 
of this paragraph. The Secretary’s report 
will specifically address the impact of the 
digital divide on the following student pop-
ulations: independent students, tradition-
ally underrepresented students, and depend-
ent students. 
‘‘(4) ELECTRONIC FORMAT.— 
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‘‘(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 com-
mon electronic forms for applicants who do not 
meet the requirements of subparagraph (C) of 
this paragraph. 
‘‘(B) STATE DATA.—The Secretary shall in-
clude on the common electronic forms space for 
information that needs to be entered for the ap-
plicant to be eligible for State financial assist-
ance, as provided under paragraph (6), except 
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 electronic ap-
plication form to be used by applicants 
meeting the requirements under subsections 
(b) and (c) of section 479. 
‘‘(ii) 
REDUCED
DATA
REQUIRE-
MENTS.—The simplified electronic applica-
tion forms shall permit an applicant to sub-
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mit for financial assistance purposes, only 
the data elements required to make a deter-
mination 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 edu-
cation, guaranty agencies, and States in ac-
cordance with paragraph (9). 
‘‘(v) TESTING.—The Secretary shall 
conduct appropriate field testing on the 
forms developed under this subparagraph. 
‘‘(D) USE OF FORMS.—Nothing in this sub-
section shall be construed to prohibit the use of 
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the forms developed by the Secretary pursuant to 
this paragraph by an eligible institution, eligible 
lender, guaranty agency, State grant agency, 
private computer software provider, a consor-
tium thereof, or such other entities as the Sec-
retary may designate. 
‘‘(E) PRIVACY.—The Secretary shall ensure 
that data collection under this paragraph com-
plies with section 552a of title 5, United States 
Code, and that any entity using the electronic 
version of the forms developed by the Secretary 
pursuant to this paragraph shall maintain rea-
sonable and appropriate administrative, tech-
nical, and physical safeguards to ensure the in-
tegrity and confidentiality of the information, 
and to protect against security threats, or unau-
thorized 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 only for the application, 
award, and administration of aid awarded 
under this title, State aid awarded under section 
415C, or aid awarded by eligible institutions or 
such entities as the Secretary may designate. No 
data collected by such electronic version of the 
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forms shall be used for making final aid awards 
under this title until such data have been proc-
essed by the Secretary or a contractor or designee 
of the Secretary, except as may be permitted 
under this title. 
‘‘(F) 
SIGNATURE.—Notwithstanding 
any 
other provision of this Act, the Secretary may 
permit an electronic form under this paragraph 
to be submitted without a signature, if a signa-
ture is subsequently submitted by the applicant 
or if the applicant uses a personal identification 
number provided by the Secretary under sub-
paragraph (G) of this paragraph. 
‘‘(G) PERSONAL IDENTIFICATION NUMBERS 
AUTHORIZED.—The Secretary may assign to ap-
plicants personal identification numbers— 
‘‘(i) to enable the applicants to use 
such numbers in lieu of a signature for pur-
poses of completing a form under this para-
graph; 
‘‘(ii) to enable the applicants to use 
such numbers in lieu of a signature for pur-
poses of completing forms required by States 
under section 415C; and 
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‘‘(iii) for any purpose determined by 
the Secretary to enable the Secretary to 
carry out this title. 
‘‘(H) PERSONAL
IDENTIFICATION
NUMBER 
IMPROVEMENT.—The Secretary shall implement 
a real-time data match between the Social Secu-
rity Administration and the Department to min-
imize the time required for an applicant to ob-
tain a personal identification number when ap-
plying for aid under this title through an elec-
tronic version of a form developed under this 
paragraph. 
‘‘(5) STREAMLINING.— 
‘‘(A) STREAMLINED REAPPLICATION PROC-
ESS.— 
‘‘(i) IN GENERAL.—The Secretary shall 
develop streamlined reapplication forms 
and processes, including both paper and 
electronic reapplication processes, consistent 
with the requirements of this subsection, for 
an applicant who applies for financial as-
sistance under this title in the next suc-
ceeding academic year subsequent to the 
year in which such applicant first applied 
for financial assistance under this title. 
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‘‘(ii) MECHANISMS
FOR
REAPPLICA-
TION.—The Secretary shall develop appro-
priate mechanisms to support reapplica-
tion. 
‘‘(iii) IDENTIFICATION
OF
UPDATED 
DATA.—The Secretary shall determine, in 
cooperation with States, institutions of 
higher education, agencies, and organiza-
tions involved in student financial assist-
ance, the data elements that can be updated 
from the previous academic year’s applica-
tion. 
‘‘(iv) REDUCED DATA AUTHORIZED.— 
Nothing in this title shall be construed as 
limiting the authority of the Secretary to 
reduce the number of data elements required 
of reapplicants. 
‘‘(v) ZERO
FAMILY
CONTRIBUTION.— 
Applicants determined to have a zero family 
contribution pursuant to section 479(c) 
shall not be required to provide any finan-
cial data in a reapplication form, except 
that which is necessary to determine eligi-
bility under such section. 
‘‘(B) REDUCTION OF DATA ELEMENTS.— 
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‘‘(i) REDUCTION ENCOURAGED.—Of the 
number of data elements on the FAFSA on 
the date of enactment of the College Oppor-
tunity and Affordability Act of 2007 (in-
cluding questions on the FAFSA for the 
purposes described in paragraph (6)), the 
Secretary, in cooperation with representa-
tives of agencies and organizations involved 
in student financial assistance, shall con-
tinue to reduce the number of such data ele-
ments required to be entered by all appli-
cants, with the goal of reducing such num-
ber by 50 percent. Reductions of data ele-
ments under paragraph (3)(B), (4)(C), or 
(5)(A)(iv) shall not be counted towards such 
reduction unless those data elements are re-
duced for all applicants. 
‘‘(ii) REPORT.—The Secretary shall 
submit a report on the process of this reduc-
tion to each the authorizing committees 
within 2 years after such date of enactment. 
‘‘(6) STATE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The Secretary shall in-
clude on the forms developed under this sub-
section, such State-specific nonfinancial data 
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items as the Secretary determines are necessary 
to meet State requirements for need-based State 
aid under section 415C, except as provided in 
paragraphs (3)(B)(iii) and (4)(C)(iii) of this 
subsection. Such items shall be selected in con-
sultation with State agencies that submit appli-
cations under section 415C in order to assist in 
the awarding of State financial assistance in ac-
cordance with the terms of this subsection, except 
as provided in paragraphs (3)(B)(iii) and 
(4)(C)(iii) of this subsection. The number of such 
data items shall not be less than the number in-
cluded on the form for the 2008–2009 academic 
year, unless a State notifies the Secretary that 
the State no longer requires those data items for 
the distribution of State need-based aid. 
‘‘(B) ANNUAL REVIEW.—The Secretary shall 
conduct an annual review process to determine 
which forms and nonfinancial data items the 
States require to award need-based State aid 
and other application requirements that the 
States may impose. 
‘‘(C) STATE USE OF SIMPLIFIED FORMS.— 
The Secretary shall encourage States to take such 
steps as necessary to encourage the use of sim-
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plified application forms, including those de-
scribed in paragraphs (3)(B) and (4)(C), to meet 
the requirements under subsection (b) or (c) of 
section 479. 
‘‘(D) FEDERAL
REGISTER
NOTICE.—The 
Secretary shall publish on an annual basis a no-
tice in the Federal Register requiring State agen-
cies to inform the Secretary— 
‘‘(i) if the State agency is unable to 
permit applicants to utilize the simplified 
application forms described in paragraphs 
(3)(B) and (4)(C); and 
‘‘(ii) of the State-specific nonfinancial 
data that the State agency requires for de-
livery of State need-based financial aid. 
‘‘(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 sub-
section for purposes of determining eli-
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gibility 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 appli-
cant to file a form described in paragraph 
(3)(B) or (4)(A) of this subsection for pur-
poses of determining eligibility for State 
need-based grant aid— 
‘‘(I) the State shall notify the Sec-
retary if the State is not permitted to 
do so because of either State law or be-
cause of agency policy; and 
‘‘(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 Sec-
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384 
retary pursuant to clause (i), the Secretary 
shall— 
‘‘(I) permit residents of that State 
to 
complete 
simplified 
application 
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 Sec-
retary and no parent or student shall be 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 as-
sistance 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 assistance under parts A 
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through E of this title (other than under subpart 
4 of part A), except by use of the FAFSA devel-
oped by the Secretary pursuant to this sub-
section. No data collected 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 par-
ents for, any value-added services with respect to 
or in connection with the FAFSA, such as com-
pletion of the FAFSA, submission of the FAFSA, 
or tracking of the FAFSA for a student, shall 
provide to students and parents clear and con-
spicuous notice that— 
‘‘(i) the FAFSA is a free Federal stu-
dent aid application; 
‘‘(ii) the FAFSA can be completed 
without professional assistance; and 
‘‘(iii) includes the current Internet ad-
dress for the FAFSA on the Department’s 
web site. 
‘‘(8) APPLICATION
PROCESSING
CYCLE.—The 
Secretary shall enable students to submit a form cre-
ated under this subsection in order to meet the filing 
requirements of this section and in order to receive 
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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 fol-
lowing 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 Af-
fordability Act of 2007, implement an early ap-
plication demonstration program enabling de-
pendent students to— 
‘‘(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 
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submitted under clause (i), using the process 
described in paragraph (5) to determine 
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 pur-
pose of the demonstration program under this 
paragraph shall be to measure the benefits, in 
terms of student aspirations and plans to attend 
college, and the adverse effects, in terms of pro-
gram costs, integrity, distribution, and delivery 
of aid under this title, of implementing an early 
application system for all dependent students 
that allows dependent students to apply for fi-
nancial aid using information from the year 
prior to the year prior to enrollment. Additional 
objectives associated with implementation of the 
demonstration program are the following: 
‘‘(i) Measure the feasibility of enabling 
dependent students to apply for Federal, 
State, and institutional financial aid in 
their junior year of high school, using infor-
mation from the year prior to the year 
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prior to enrollment, by completing any of 
the application forms under this subsection. 
‘‘(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. 
‘‘(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 pro-
grams 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 program 
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under this paragraph that are participating in 
the programs under this title and that are will-
ing to make final financial aid awards to stu-
dents 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. 
‘‘(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 
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‘‘(II) make final financial aid 
awards to participating students based 
on the updated information contained 
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-
lined under section 479A and section 
480(d)(7). 
‘‘(E) EVALUATION.—The Secretary shall 
conduct a rigorous evaluation of this demonstra-
tion program in order to measure its benefits 
and adverse effects as indicated under subpara-
graph (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. 
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‘‘(G) CONSULTATION.—The Secretary shall 
consult with the Advisory Committee on Student 
Financial Assistance, established under section 
491, on the design and implementation of the 
demonstration program and on the evaluation 
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. 
(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 Register; 
‘‘(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 College 
Opportunity and Affordability Act of 2007, the Sec-
retary shall— 
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(A) prepare a report on the adequacy of the 
financial aid offer forms provided by institutions 
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 
administrators, registrars, and business of-
ficers); and 
(iv) consumer groups that receive no 
commercial or institution of higher edu-
cation support; 
(B) include in the report a model format for 
financial aid offer forms that— 
(i) is based on the report’s findings; 
and 
(ii) includes the information described 
in paragraph (2); and 
(C)(i) submit the report and model format 
to the authorizing committees (as defined in sec-
tion 103 of the Higher Education Act of 1965 
(20 U.S.C. 1003); and 
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(ii) make the report and model format 
available to institutions of higher education, 
lenders, and the public. 
(2) MODEL FORMAT CONTENTS.—The model fi-
nancial aid offer format developed under paragraph 
(1) shall present, in a consumer-friendly manner, the 
following information: 
(A) The student’s cost of attendance for the 
year for which the institution of higher edu-
cation is issuing the financial aid offer form, in-
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. 
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(D) The amount of work-study assistance 
offered to the student for such year, and the con-
ditions 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 student 
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-
tion 455 for which a parent of the student is eli-
gible for such year, and the interest rate, loan 
term, monthly repayment amount, and total re-
payment 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. 
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(H) Where a student or the student’s parent 
can seek additional information regarding the fi-
nancial aid offered. 
(I) Any other information the Secretary de-
termines necessary so that students and parents 
can make informed student loan borrowing deci-
sions. 
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-
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; REPORT. 
(a) SENSE OF CONGRESS.—It is the sense of the Con-
gress 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 
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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 re-
newal applications and providing early estimates of 
aid eligibility; and 
(2) this process would— 
(A) ease the burden of reporting income-re-
lated information for applicants; 
(B) increase the efficiency, accuracy, and 
security of the FAFSA filing process; 
(C) significantly reduce the need for further 
verification by the Department of Education, in-
stitutions, and applicants; and 
(D) protect the security, privacy, and safety 
of all data used in the FAFSA filing process. 
(b) REPORT.—The Secretary of Education shall, with-
in one year after the date of enactment of this Act— 
(1) provide the Congress with information on the 
progress in devising the simplified process described 
in subsection (a); and 
(2) inform the Congress of any necessary statu-
tory changes for the purpose of increasing the effi-
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ciency and effectiveness of the FAFSA application 
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 citizen 
of any one of the Freely Associated States’’ and 
inserting ‘‘or, to the extent described in sub-
section (j), a citizen of the Republic of Palau’’; 
(2) by amending subsection (j) to read as follows: 
‘‘(j) ASSISTANCE UNDER SUBPART 1 OF PART A FOR 
STUDENTS FROM PALAU.—Notwithstanding any other pro-
vision of law, a student shall be eligible until September 
30, 2009, for assistance under subpart 1 of part A if the 
student is otherwise qualified and— 
‘‘(1) is a citizen of the Republic of Palau and at-
tends 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 institution 
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of higher education in any one of the Freely Associ-
ated 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 higher 
education that is offered principally through dis-
tance education and leads to a recognized certifi-
cate, or associate, baccalaureate, or graduate de-
gree, conferred by such institution, shall not be 
considered to be enrolled in correspondence 
courses. 
‘‘(B) EXCEPTION.—An institution of higher 
education referred to in subparagraph (A) shall 
not include an institution or school described in 
section 3(3)(C) of the Carl D. Perkins 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 
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discretionary authority provided in section 479A that 
distance education results in a substantially reduced 
cost of attendance to such student. 
‘‘(3) SPECIAL RULE.—For award years prior to 
July 1, 2008, the Secretary shall not take any compli-
ance, 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 institution dem-
onstrates to the satisfaction of the Secretary that its 
course of instruction would have been in conformance 
with the requirements of this subsection.’’; 
(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 
(C) by inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) the student successfully passes two un-
announced drug tests conducted by a drug reha-
bilitation program that complies with such cri-
teria as the Secretary shall prescribe in regula-
tions for purposes of subparagraph (A)(i); or’’; 
and 
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(5) by adding at the end the following: 
‘‘(s) STUDENTS WITH INTELLECTUAL DISABILITIES.— 
‘‘(1) IN GENERAL.—Notwithstanding subsections 
(a), (c), and (d), in order to receive any grant or 
work assistance under section 401 and subpart 3 of 
part A and part C of this title, a student with an in-
tellectual disability shall— 
‘‘(A) be an individual with an intellectual 
disability whose mental retardation or other sig-
nificant cognitive impairment substantially im-
pacts the individual’s intellectual and cognitive 
functioning; 
‘‘(B)(i) be a student eligible for assistance 
under the Individuals with Disabilities Edu-
cation Act who has completed secondary school; 
or 
‘‘(ii) be an individual who was, but is no 
longer, eligible for assistance under the Individ-
uals with Disabilities Education Act because the 
individual has exceeded the maximum age for 
which the State provides a free appropriate pub-
lic education; 
‘‘(C) be enrolled or accepted for enrollment 
in a comprehensive transition and postsecondary 
education program that— 
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‘‘(i) is designed to support students 
with an intellectual disability who are seek-
ing to continue academic, vocational, and 
independent living instruction at the insti-
tution in order to prepare for gainful em-
ployment and independent living; 
‘‘(ii) includes an advising and cur-
riculum structure; and 
‘‘(iii) requires students to participate 
on at least a half-time basis, as determined 
by the institution, including— 
‘‘(I) regular enrollment in courses 
offered by the institution; 
‘‘(II) auditing or participating in 
courses offered by the institution for 
which the student does not receive reg-
ular academic credit; 
‘‘(III) enrollment in noncredit, 
nondegree courses; 
‘‘(IV) participation in intern-
ships; or 
‘‘(V) a combination of 2 or more 
of the activities described in clauses (i) 
through (iv); 
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‘‘(D) be maintaining satisfactory progress 
in the program as determined by the institution, 
in accordance with standards established by the 
institution; and 
‘‘(E) meet the requirements of paragraphs 
(3), (4), (5), and (6) of subsection (a). 
‘‘(2) REGULATIONS.—Notwithstanding rules ap-
plicable to grant or work assistance awards made 
under section 401 of part A, subpart 3 of part A, and 
part C of this title, including with respect to eligible 
programs, instructional time, credit status, and en-
rollment status as described in section 481, the Sec-
retary shall promulgate regulations allowing pro-
grams enrolling students with intellectual disabilities 
otherwise determined to be eligible under this sub-
section to receive such awards. 
‘‘(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 2007, the Secretary shall, in con-
sultation with the Central Processing System, analyze 
data from the FAFSA containing information regard-
ing the number, characteristics, and circumstances of 
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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 beginning 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 and 
operation of the data system authorized by this sub-
section.’’. 
(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 
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(3) by adding at the end the following new para-
graph: 
‘‘(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 sub-
ject 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 amend-
ed by adding at the end the following new subparagraph: 
‘‘(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, in-
cluding 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 sec-
tion 481(d)), and 
‘‘(iii) whose attendance at such institu-
tion is interrupted by such active duty, 
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to apply for readmission to such institution of 
higher education after the conclusion of such ac-
tive duty shall submit to the Secretary a state-
ment justifying such requirement.’’. 
SEC. 488. INSTITUTIONAL AND FINANCIAL ASSISTANCE IN-
FORMATION FOR STUDENTS. 
(a) DISCLOSURE OF POLICIES AND SANCTIONS RE-
LATED TO COPYRIGHT INFRINGEMENT.—Section 485(a)(1) 
(20 U.S.C. 1092(a)(1)) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (N); 
(2) by striking the period at the end of subpara-
graph (O) and inserting ‘‘; and’’ ; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(P) institutional policies and sanctions re-
lated to copyright infringement, including— 
‘‘(i) an annual disclosure that explic-
itly informs students that unauthorized dis-
tribution of copyrighted material, including 
unauthorized peer-to-peer file sharing, may 
subject the students to civil and criminal li-
abilities; 
‘‘(ii) a summary of the penalties for 
violation of Federal copyright laws; 
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‘‘(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 institution’s 
information technology system; and 
‘‘(iv) a description of actions that the 
institution takes to prevent and detect un-
authorized distribution of copyrighted mate-
rial on the institution’s information tech-
nology system.’’. 
(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’’; and 
(2) in subparagraph (F)— 
(A) by striking clause (i) and inserting the 
following: 
‘‘(i) of the following criminal offenses 
reported to campus security authorities or 
local police agencies: 
‘‘(I) murder; 
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‘‘(II) sex offenses, forcible or non-
forcible; 
‘‘(III) robbery; 
‘‘(IV) aggravated assault; 
‘‘(V) intimidation; 
‘‘(VI) burglary; 
‘‘(VII) larceny-theft; 
‘‘(VIII) motor vehicle theft; 
‘‘(IX) destruction, damage, or 
vandalism of property; 
‘‘(X) simple assault; 
‘‘(XI) manslaughter; 
‘‘(XII) arson; and 
‘‘(XIII) arrests or persons referred 
for campus disciplinary action for liq-
uor law violations, drug-related viola-
tions, and weapons possession; and’’; 
and 
(B) in clause (ii), by striking ‘‘of the crimes 
described in subclauses (I) through (VIII)’’ and 
inserting ‘‘for degree-granting institutions only, 
of the crimes described in subclauses (I) through 
(XII)’’; and 
(3) by adding at the end the following new sub-
paragraph: 
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‘‘(J) A statement of current campus policies 
regarding immediate emergency response and 
evacuation procedures, including the use of elec-
tronic 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 sit-
uation, involving an immediate threat to 
the health or safety of students or staff, oc-
curring on the campus, in or on noncampus 
buildings or property, and on public prop-
erty; 
‘‘(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 fur-
ther amended— 
(1) by redesignating paragraph (15) as para-
graph (18); and 
(2) by inserting after paragraph (14) the fol-
lowing: 
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‘‘(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. 
‘‘(16) BEST
PRACTICES.—The Secretary may 
seek the advice and counsel of the Attorney General 
concerning the development, and dissemination to in-
stitutions of higher education, of best practices infor-
mation 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 other-
wise discriminate against any individual for the pur-
pose of interfering with the implementation of any 
provision of this subsection, or any rights or privi-
leges accorded under this subsection, or because the 
individual has complained, testified, assisted, or oth-
erwise participated in any aspect of an investigation, 
proceeding, or hearing.’’. 
(d) ADDITIONAL REQUIREMENTS.—Section 485 (20 
U.S.C. 1092) is amended by adding at the end the following 
new subsections: 
‘‘(h) TRANSFER OF CREDIT POLICIES.— 
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‘‘(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 
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 National 
Advisory Committee on Institutional Quality 
and Integrity to require particular policies, pro-
cedures, 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, super-
vision, or control over the curriculum, program 
of instruction, administration, or personnel of 
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any institution of higher education, or over any 
accrediting agency or association; 
‘‘(C) limit the application of the General 
Education Provisions Act; or 
‘‘(D) create any legally enforceable right on 
the part of a student to require an institution 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 institution 
participating in any program under this title that 
maintains on-campus student housing facilities shall, 
on an annual basis, publish a fire safety report, 
which shall contain information with respect to the 
campus fire safety practices and standards of that in-
stitution, 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; 
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‘‘(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 
‘‘(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 pro-
grams 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-
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retary a copy of the statistics required to be made 
available under subparagraph (A). 
‘‘(3) CURRENT INFORMATION TO CAMPUS COMMU-
NITY.—Each institution participating in any pro-
gram under this title shall— 
‘‘(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 poli-
cies, procedures, programs, and practices; 
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‘‘(ii) disseminate information to the 
Administrator of the United States Fire Ad-
ministration; 
‘‘(iii) make available to the public in-
formation concerning those policies, proce-
dures, programs, and practices that have 
proven effective in the reduction of fires; 
and 
‘‘(iv) develop a protocol for institutions 
to review the status of their fire safety sys-
tems. 
‘‘(5) RULES OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to— 
‘‘(A) authorize the Secretary to require par-
ticular policies, procedures, programs, or prac-
tices by institutions of higher education with re-
spect to fire safety, other than with respect to the 
collection, reporting, and dissemination of infor-
mation required by this subsection; 
‘‘(B) affect the Family Educational Rights 
and Privacy Act of 1974 or the regulations 
issued under section 264 of the Health Insurance 
Portability and Accountability Act of 1996 (42 
U.S.C. 1320d–2 note); 
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‘‘(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 regard-
ing compliance with this subsection by institutions of 
higher education, including an up-to-date report on 
the Secretary’s monitoring of such compliance. 
‘‘(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 other-
wise discriminate against any individual for the pur-
pose of interfering with the implementation of any 
provision of this subsection, or any rights or privi-
leges accorded under this subsection, or because the 
individual has complained, testified, assisted, or oth-
erwise participated in any aspect of an investigation, 
proceeding, or hearing. 
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‘‘(j) MISSING PERSON PROCEDURES.— 
‘‘(1) FORM AND PROTOCOLS.—Each institution 
of higher education participating in any program 
under this title shall— 
‘‘(A) include on its form for registration or 
enrollment of students an item in which the stu-
dent can elect to identify an individual to be no-
tified and police to be notified by the university 
within 24 hours of when a student is reported 
missing to the university, and 
‘‘(B) establish protocols for missing students 
that— 
‘‘(i) require any missing person report 
relating to any student be referred to the in-
stitution’s police or campus security depart-
ment; 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 
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‘‘(II) if the student is under 18 
years of age, the institution of higher 
education to automatically contact the 
parents of such student. 
‘‘(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.—Noth-
ing in this subsection shall be construed to prevent or 
discourage an institution of higher education from 
taking additional measures with respect to missing 
students beyond those required by this subsection. 
‘‘(k) NOTICE TO STUDENTS CONCERNING PENALTIES 
FOR DRUG VIOLATIONS.—Each institution of higher edu-
cation shall provide to each student, upon enrollment, a sep-
arate, clear, and conspicuous written notice that advises the 
student of the penalties under section 484(r).’’. 
SEC. 489. ARTICULATION AGREEMENTS. 
Part G of title IV is amended by inserting after section 
486 (20 U.S.C. 1093) the following new section: 
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‘‘SEC. 486A. ARTICULATION AGREEMENTS. 
‘‘(a) 
PROGRAM
TO
ENCOURAGE
ARTICULATION 
AGREEMENTS.— 
‘‘(1) PROGRAM REQUIREMENTS.—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, and on the application mate-
rials of such 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; 
‘‘(C) developing or expanding articulation 
agreements that include both public and private 
institutions of higher education; 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 
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of developing and implementing articulation agree-
ments in accordance with this subsection. 
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to limit the academic 
freedom or choices of institutions of higher education. 
‘‘(b) STUDY REQUIRED.—The Secretary shall conduct 
a study to review the articulation agreements at State-based 
college and university systems, including junior or commu-
nity colleges, as well as those at other institutions of higher 
education, including private non-profit and for-profit insti-
tutions. 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— 
‘‘(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, in-
cluding common course numbering and general 
education core curriculum; 
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‘‘(D) the effective use of technologies to con-
tain 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 em-
ployed to implement effective articulation agreements; 
and 
‘‘(4) barriers to the implementation of articula-
tion agreements, including technological and informa-
tional 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 
of enactment of the College Opportunity and Affordability 
Act of 2007 and a final report on such study not later than 
January 1, 2013. 
‘‘(d) DEFINITION.—In this section, the term ‘articula-
tion agreement’ means an agreement between institutions 
of higher education that specifies the acceptability of courses 
in transfer toward meeting specific degree requirements.’’. 
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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 electronically 
transmits a message containing a voter registration 
form acceptable for use in the State in which the in-
stitution is located, or an Internet address where such 
a form can be downloaded, provided such information 
is in an electronic message devoted exclusively to voter 
registration.’’; and 
(2) by adding at the end the following new para-
graphs: 
‘‘(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 recommends, 
promotes, or endorses in accordance with such pre-
ferred lender arrangement. In compiling, maintain-
ing, and making available such list, the institution 
will— 
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‘‘(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 bor-
rower; and 
‘‘(III) that the students attending the 
institution (or the parents of such students) 
do not have to borrow from a listed lender; 
‘‘(ii) ensure, through the use of the list pro-
vided by the Secretary under subparagraph (B), 
that— 
‘‘(I) there are not less than 3 lenders of 
loans made under part B that are not affili-
ates 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 edu-
cational loans that are not affiliates of each 
other included on such list; 
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‘‘(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 lend-
er 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-
lected on the basis of the benefits provided to bor-
rowers, 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-
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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 
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 common 
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 percent 
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or more of any class of voting securities 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 
‘‘(iv) the term ‘educational loans’ has the 
meaning provided in section 151, except that 
such term does not include loans under section 
499(b) or under parts D or E of this title. 
‘‘(25) The institution will submit to the Sec-
retary annually, in such form as the Secretary may 
prescribe, data on— 
‘‘(A) the number and percentage of students 
taking classes in whole or in part on-line or 
through distance education; 
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‘‘(B) of such students, the number and per-
centage of those taking their classes exclusively 
on-line or through distance education; and 
‘‘(C) the number and percentage of courses 
offered by the institution that are offered on-line 
or through distance education.’’. 
(b) REPORTS ON DISCIPLINARY PROCEEDINGS.— 
(1) AMENDMENT.—Section 487(a) (20 U.S.C. 
1094(a)) is further amended by adding after para-
graph (25), as added by subsection (a) of this section, 
the following new paragraph: 
‘‘(26) The institution will, upon request, disclose 
to the alleged victim of any crime of violence (as that 
term is defined in section 16 of title 18), or a nonforc-
ible 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 al-
leged 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 
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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.’’. 
(2) IMPLEMENTATION.—Section 487 is further 
amended by adding at the end the following new sub-
section: 
‘‘(f) IMPLEMENTATION OF NON-TITLE IV REVENUE 
REQUIREMENT.— 
‘‘(1) CALCULATION.—In carrying out subsection 
(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— 
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‘‘(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 tuition, 
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 institu-
tion; 
‘‘(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 educational 
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 ap-
proved or licensed by the appropriate State 
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agency and is accredited by an accrediting 
agency recognized by the Secretary; 
‘‘(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 tuition, 
fees, or other institutional charges, regardless of 
whether the institution credits those funds to the 
student’s account or pays those funds directly to 
the student, except to the extent that the student’s 
tuition, fees, or other institutional charges are 
satisfied by— 
‘‘(i) grant funds provided by non-Fed-
eral public agencies or private sources inde-
pendent 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 indi-
viduals 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 reasonable 
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demonstrate such funds were used to pay 
the student’s tuition, fees, or other institu-
tional charges; 
‘‘(D) include institutional aid as revenue to 
the school only as follows: 
‘‘(i) in the case of institutional loans, 
only the amount of loan repayments re-
ceived during the fiscal year; and 
‘‘(ii) 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 achieve-
ments or financial need of students, dis-
bursed during the fiscal year from an estab-
lished restricted account, and only to the ex-
tent that funds in that account represent 
designated funds from an outside 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; 
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‘‘(ii) the amount of funds it received 
under the Leveraging Education Assistance 
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 consecu-
tive fiscal years shall become ineligible to par-
ticipate in the programs authorized by this title. 
To regain eligibility to participate in the pro-
grams 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 fis-
cal years following the fiscal year the institution 
became ineligible. 
‘‘(B) In addition to such other means of en-
forcing the requirements of this title as may be 
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available to the Secretary, if an institution fails 
to meet the requirements of subsection (a)(27) in 
any fiscal year, the Secretary shall impose sanc-
tions 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 
‘‘(iii) requiring such other increased 
monitoring and reporting requirements as 
the Secretary determines necessary until the 
institution demonstrates, to the satisfaction 
of the Secretary, that it is in compliance 
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 Navi-
gator website. 
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‘‘(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 institu-
tion pursuant to such subsection and paragraph (1) 
of this subsection.’’. 
(d) COMPUTER DISPOSAL.—Section 487(a) is further 
amended by adding at the end the following new paragraph: 
‘‘(28)(A) The institution of higher education will 
establish a policy on the disposal or disposition (in-
cluding selling, donating, returning upon lease end, 
or destroying by recycling), of all technology assets 
which may have personal and sensitive data of stu-
dents. Such policy may include a forensic scrub that 
ensures total destruction of data on the technology as-
sets and include a designated for disposal or disposi-
tion, transfer ownership and liability from that insti-
tution to State and federally approved recyclers 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), 
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firewalls, telephones, or other simple network devices 
or single piece of information technology equipment.’’. 
(e) 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 Secretary 
may modify the requirements of this clause with 
respect to institutions of higher education that 
are foreign institutions, and may waive such re-
quirements with respect to a foreign institution 
whose students receive less than $500,000 in 
loans under this title during the award year pre-
ceding the audit period’’; 
(2) in clause (ii), by striking ‘‘or’’ after the semi-
colon; 
(3) in clause (iii), by inserting ‘‘or’’ after the 
semicolon; and 
(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 
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it is determined through such audit that the per-
centage of students enrolled at the institution 
who were accepted for enrollment and made eli-
gible for student financial assistance under this 
title by way of section 484(d)(2) exceeds 5 per-
cent of the total enrollment of the institution for 
such academic year, an additional review to con-
firm that the institution is in compliance with 
the regulations prescribed by the Secretary under 
section 484(d);’’. 
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 continue 
the voluntary participation of any experimental sites 
in existence as of July 1, 2007, unless the Secretary 
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 discontinued 
not later than June 30, 2009.’’; 
(2) by striking the matter preceding paragraph 
(2)(A) and inserting the following: 
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‘‘(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 
(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 dis-
bursement of student financial aid (such as 
innovative delivery systems for modular or 
compressed courses, or other innovative sys-
tems), verification of student financial aid 
application data, entrance and exit inter-
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views, or other management procedures or 
processes as determined in the negotiated 
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 
provision under this title’’ before the period 
at the end. 
SEC. 492. 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 students 
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and families of their eligibility for assistance 
under this title, and, to the extent practicable, 
their eligibility for other forms of State and in-
stitutional need-based student assistance; and 
‘‘(E) to make recommendations that will ex-
pand and improve partnerships among the Fed-
eral Government, States, institutions, and pri-
vate entities to increase the awareness and total 
amount of need-based student assistance avail-
able to low- and moderate-income students.’’; 
(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 anal-
yses’’; 
(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 fol-
lowing: 
‘‘(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 
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persistence, and report those implications annually to 
Congress and the Secretary; and’’; 
(3) in subsection (j)(1)— 
(A) by inserting ‘‘and simplification’’ after 
‘‘delivery processes’’; and 
(B) by striking ‘‘, including the implemen-
tation of a performance-based organization with-
in the Department, and report to Congress re-
garding such modernization on not less than an 
annual basis’’; and 
(4) in subsection (k), by striking ‘‘2004’’ and in-
serting ‘‘2011’’. 
SEC. 493. NEGOTIATED RULEMAKING. 
Section 492(b)(1) (20 U.S.C. 1098a(b)(1)) is amended 
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 constitu-
encies in the higher education community’’. 
SEC. 494. TECHNICAL AMENDMENT. 
Section 493C(b)(1) (20 U.S.C. 1098e(b)(1)) is amend-
ed by striking ‘‘or is already in default’’. 
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SEC. 495. 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: 
‘‘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 il-
legal 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-
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tion of intellectual property. Such grants or contracts 
may also be used for the support of a higher edu-
cation centers that will provide training, technical as-
sistance, evaluation, dissemination, and associated 
services and assistance to the higher education com-
munity as determined by the Secretary and institu-
tions 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 Secretary 
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 fis-
cal year 2009 and for each of the 4 succeeding fiscal 
years.’’. 
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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)— 
(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 following 
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 offering 
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 associa-
tion shall not be required to have separate stand-
ards, procedures or policies for the evaluation of 
distance education institutions or programs in 
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order to meet the requirements of this subpara-
graph; and 
‘‘(ii) the agency or association requires an 
institution that offers distance education to have 
processes through which the institution estab-
lishes 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) by striking paragraph (6) and inserting 
the following: 
‘‘(6) such agency or association shall establish 
and apply review procedures throughout the accred-
iting process, including evaluation and withdrawal 
proceedings which comply with due process procedures 
that provide for— 
‘‘(A) adequate specification of requirements, 
including clear and consistent standards for an 
institution to be accredited, and deficiencies 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; 
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‘‘(C) upon the written request of an institu-
tion, an opportunity for the institution to appeal 
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 de-
cision-making body that made the adverse 
decision; and 
‘‘(ii) is subject to a conflict of interest 
policy; and 
‘‘(D) the right to representation by counsel 
for such an institution during an appeal of the 
adverse action;’’; and 
(C) by striking paragraph (8) and inserting 
the following: 
‘‘(8) such agency or association shall make avail-
able to the public and the State licensing or author-
izing agency, and submit to the Secretary, a sum-
mary of agency or association actions, including— 
‘‘(A) the award of accreditation or re-
accreditation of an institution; 
‘‘(B) final denial, withdrawal, suspension, 
or termination of accreditation, and any find-
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to permit the Secretary to establish any criteria that 
specifies, defines, or prescribes the standards that ac-
crediting agencies or associations shall use to assess 
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 
law, the Secretary shall not promulgate any regula-
tion with respect to subsection (a)(5).’’. 
(b) ADDITIONAL AMENDMENT.—Section 496(a)(4)(A) 
as amended by subsection (a) is further amended by insert-
ing after ‘‘consistently applies and enforces standards’’ the 
following: ‘‘that respect the stated mission of the institution 
of higher education, including religious missions, and’’. 
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-
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pants in the accreditation process who may have grievances 
related to the functions described in subsection (c). 
‘‘(b) PUBLIC INFORMATION.—The Assistant Secretary 
for Postsecondary Education shall disseminate information 
about the availability and functions of the Ombudsman to 
institutions of higher education, accrediting agencies and 
associations, and other participants in the accreditation 
process. 
‘‘(c) FUNCTIONS OF OMBUDSMAN.—The Ombudsman 
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 re-
solve such complaints within the Department of Edu-
cation and with institutions of higher education, ac-
creditation agencies and associations, and other par-
ticipants 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. 
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‘‘(d) REPORT.—Each year, the Ombudsman shall sub-
mit a report to the Assistant Secretary for Postsecondary 
Education, for inclusion in the annual report under section 
114, that describes the activities, and evaluates the effective-
ness of the Ombudsman during the preceding year.’’. 
SEC. 498. PROGRAM REVIEW AND DATA. 
Section 498A(b) (20 U.S.C. 1099c–1(b)) is amended— 
(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 para-
graphs: 
‘‘(6) provide the institution adequate oppor-
tunity to review and respond to any program review 
report or audit finding before any final program re-
view or audit determination is reached, including ac-
cess to any and all workpapers, notes, documentation, 
records, or other information relating to the program 
review report or audit finding; 
‘‘(7) review and take into consideration the insti-
tution’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 de-
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termination, and a copy of the institution’s response; 
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 add-
ing at the end the following new subsections: 
‘‘(c) REQUIRED INITIAL EVALUATION.—The Secretary 
and Secretary of the Treasury shall jointly conduct an eval-
uation, in consultation with the Office of Management and 
Budget, the Congressional Budget Office, and the Comp-
troller General, of the pilot program carried out by the Sec-
retary under this section. The evaluation shall determine— 
‘‘(1) the extent of the savings to the Federal Gov-
ernment that are generated through the pilot pro-
gram, compared to the cost the Federal Government 
would have incurred in operating the PLUS loan 
program under section 428B in the absence of the 
pilot program; 
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‘‘(2) the number of lenders that participated in 
the pilot program, and the extent to which the pilot 
program generated competition among lenders to par-
ticipate 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 operation 
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 ef-
ficiently; and 
‘‘(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; and 
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‘‘(7) the feasibility of using other market mecha-
nisms 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. 
‘‘(d) REPORTS.—The Secretary and the Secretary of 
the Treasury shall submit to the authorizing committees— 
‘‘(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.’’. 
TITLE V—TITLE V AMENDMENTS 
SEC. 501. POSTBACCALAUREATE OPPORTUNITIES FOR HIS-
PANIC AMERICANS. 
(a) ESTABLISHMENT OF PROGRAM.—Title V is amend-
ed— 
(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: 
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453 
‘‘PART B—PROMOTING POSTBACCALAUREATE 
OPPORTUNITIES FOR HISPANIC AMERICANS 
‘‘SEC. 511. PURPOSES. 
‘‘The purposes of this part are— 
‘‘(1) to expand postbaccalaureate educational op-
portunities for, and improve the academic attainment 
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 Hispanic 
college students and helping large numbers of His-
panic 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 
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‘‘(2) offers a postbaccalaureate certificate or de-
gree granting program. 
‘‘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, laboratories, 
and other instructional facilities, including purchase 
or rental of telecommunications technology equipment 
or services. 
‘‘(3) Purchase of library books, periodicals, tech-
nical and other scientific journals, microfilm, micro-
fiche, and other educational materials, including tele-
communications program materials. 
‘‘(4) Support for needy postbaccalaureate stu-
dents including outreach, academic support services, 
mentoring, scholarships, fellowships, and other finan-
cial assistance to permit the enrollment of such stu-
dents in postbaccalaureate certificate and degree 
granting programs. 
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‘‘(5) Support of faculty exchanges, faculty devel-
opment, faculty research, curriculum development, 
and academic instruction. 
‘‘(6) Creating or improving facilities for Internet 
or other distance learning academic instruction capa-
bilities, including purchase or rental of telecommuni-
cations 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 purposes 
of this part; and 
‘‘(B) are approved by the Secretary as part 
of the review and acceptance of such application. 
‘‘SEC. 514. APPLICATION AND DURATION. 
‘‘(a) APPLICATION.—Any eligible institution may 
apply for a grant under this part by submitting an appli-
cation 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 underrep-
resented. 
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‘‘(b) DURATION.—Grants under this part shall be 
awarded for a period not to exceed 5 years. 
‘‘(c) LIMITATION.—The Secretary shall not award 
more than one grant under this part in any fiscal year 
to any Hispanic-serving institution.’’. 
(b) COOPERATIVE ARRANGEMENTS.—Section 524(a) 
(as redesignated by subsection (a)(2)) (20 U.S.C. 1103c(a)) 
is amended by inserting ‘‘and section 513’’ after ‘‘section 
503’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Subsection 
(a) of section 528 (as redesignated by subsection (a)(2) of 
this section) (20 U.S.C. 1103g) is amended to read as fol-
lows: 
‘‘(a) AUTHORIZATIONS.— 
‘‘(1) PART A.—There are authorized to be appro-
priated to carry out part A and part C of this title 
$175,000,000 for fiscal year 2009 and such sums as 
may be necessary for each of the 4 succeeding fiscal 
years. 
‘‘(2) PART B.—There are authorized to be appro-
priated to carry out part B of this title $125,000,000 
for fiscal year 2009 and such sums as may be nec-
essary for each of the 4 succeeding fiscal years.’’. 
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(d) MINIMUM GRANT AMOUNT.—Section 528 (as redes-
ignated by subsection (a)(2) of this section) (20 U.S.C. 
1103g) is amended by adding at the end the following: 
‘‘(c) MINIMUM
GRANT
AMOUNT.—The minimum 
amount of a grant under this title shall be $200,000.’’. 
(e) PART A AUTHORIZED USES OF FUNDS.—Section 
503(b) (20 U.S.C. 1101b(b)) is amended— 
(1) by redesignating paragraph (14) as para-
graph (15); and 
(2) by inserting after paragraph (13) the fol-
lowing new paragraph: 
‘‘(14) Providing education or financial informa-
tion designed to improve the financial literacy and 
economic literacy of students or the students’ parents, 
especially with regard to student indebtedness and 
student assistance programs under the title IV.’’. 
TITLE VI—TITLE VI 
AMENDMENTS 
SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUD-
IES. 
(a) FINDINGS
AND
PURPOSES.—Section 601 (20 
U.S.C. 1121) is amended— 
(1) in subsection (a)(3), by striking ‘‘post-Cold 
War’’; 
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(2) in subsection (b)(1), by striking ‘‘; and’’ at 
the end of subparagraph (D) and inserting ‘‘, includ-
ing through linkages overseas with institutions of 
higher education and relevant organizations that con-
tribute to the educational programs assisted under 
this part; and’’; and 
(3) in subsection (b)(3) by inserting ‘‘, and 
international business and trade competitiveness’’ be-
fore the period. 
(b) GRADUATE AND UNDERGRADUATE LANGUAGE AND 
AREA CENTERS
AND PROGRAMS.—Section 602(a) (20 
U.S.C. 1122(a)) is amended— 
(1) in paragraph (1), by striking subparagraph 
(A) and inserting the following: 
‘‘(A) IN GENERAL.—The Secretary is au-
thorized to make grants to institutions of higher 
education or consortia of such institutions for the 
purpose of establishing, strengthening, and oper-
ating— 
‘‘(i) comprehensive foreign language 
and area or international studies centers 
and programs; and 
‘‘(ii) a diverse network of under-
graduate foreign language and area or 
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international studies centers and pro-
grams.’’; 
(2) in paragraph (2)— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (G); 
(B) by striking the period at the end of sub-
paragraph (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 
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‘‘Partnerships or programs of linkage and out-
reach’’; 
(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 regions, and to 
facilitate the wide dissemination of materials re-
lated to area studies.’’. 
(c) FELLOWSHIPS FOR FOREIGN LANGUAGE AND AREA 
OR INTERNATIONAL STUDIES.—Section 602(b) (20 U.S.C. 
1122(b)) is amended— 
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461 
(1) by inserting ‘‘AND UNDERGRADUATE’’ after 
‘‘GRADUATE’’ in the subsection heading; and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) ELIGIBLE STUDENTS.—A student receiving 
a stipend described in paragraph (1) shall be engaged 
in an instructional program with stated performance 
goals for functional foreign language use or in a pro-
gram developing such performance goals, in combina-
tion with area studies, international studies, or the 
international aspects of a professional studies pro-
gram, including predissertation level studies, prepa-
ration for dissertation research, dissertation research 
abroad, and dissertation writing, and— 
‘‘(A) in the case of graduate fellowships, ac-
tivities in connection with a program described 
in this paragraph may include predissertation 
level studies, preparation for dissertation re-
search, dissertation research abroad, and dis-
sertation 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.’’. 
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462 
(d) LANGUAGE RESOURCE CENTERS.—Section 603(c) 
(20 U.S.C. 1123(c)) is amended by inserting ‘‘reflect 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 profes-
sional 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 
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(D) in subparagraph (M)(ii) (as redesig-
nated by subparagraph (B) of this paragraph), 
by striking ‘‘elementary and secondary education 
institutions’’ and inserting ‘‘local educational 
agencies and public and private elementary and 
secondary education schools’’; 
(3) in subsection (a)(4)(B), by inserting ‘‘that 
demonstrates a need for a waiver or reduction’’ before 
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 before 
the period at the end of the first sentence the following: ‘‘, 
including the systematic collection, analysis, and dissemi-
nation of data’’. 
(g) TECHNOLOGICAL INNOVATION AND COOPERATION 
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-
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464 
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 fol-
lowing new paragraphs: 
‘‘(8) to establish linkages between grant recipi-
ents under subsection (a) with libraries, museums, or-
ganizations, or institutions of higher education lo-
cated overseas to facilitate carrying out the purposes 
of this section; and 
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‘‘(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 re-
duce 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 in-
stitutions of higher education address national needs, 
generate and disseminate information, and foster de-
bate on international issues.’’. 
(i) EQUITABLE DISTRIBUTION.—Section 608(a) (20 
U.S.C. 1128(a)) is amended by adding at the end the fol-
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467 
(3) in subsection (c)(2)— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (E); and 
(B) by inserting the following new subpara-
graph 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 coun-
tries with existing partnerships with other coun-
tries, including those in Asian countries focused 
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 
‘‘(B) have submitted a grant application 
under this section that demonstrates a need for 
a waiver or reduction, as determined by the Sec-
retary.’’. 
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(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 re-
duce 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: 
‘‘SEC. 621. PROGRAM FOR FOREIGN SERVICE PROFES-
SIONALS.’’; 
(2) by striking the second sentence of subsection 
(a) and inserting the following: ‘‘The Institute shall 
conduct a program to enhance the international com-
petitiveness of the United States by increasing the 
participation of underrepresented populations in the 
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469 
international service, including private international 
voluntary organizations, the international commer-
cial 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 collaboration 
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-serv-
ing, and Hispanic-serving institutions,’’. 
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470 
(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 de-
signed by the consortia’’ and inserting ‘‘The advanced 
degree study program shall be designed by the con-
sortia, consistent with the fellow’s career objectives, 
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,’’; 
(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 
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471 
(3) by amending subsection (c) to read as fol-
lows: 
‘‘(c) RALPH J. BUNCHE FELLOWS.—In order to assure 
the recognition and commitment of individuals from under-
represented student populations who demonstrate special 
interest in international affairs and language study, eligi-
ble students who participate in the internship programs au-
thorized 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; 
(2) by redesignating section 631 (20 U.S.C. 
1132) as section 641; and 
(3) by inserting after section 628 the following 
new part: 
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472 
‘‘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 teach-
er education department of an institution 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 museum; 
‘‘(v) heritage or community centers for 
language study; 
‘‘(vi) language resource centers; or 
‘‘(vii) the State foreign language coor-
dinator or State educational agency. 
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473 
‘‘(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 pro-
ficiency. 
‘‘(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 edu-
cation, elementary schools, and secondary schools to partici-
pate 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 through 
the establishment of a comprehensive, integrated sys-
tem of recruiting and advising such teachers; 
‘‘(2) focus on education of foreign language 
teachers as a career-long process that should continu-
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ously stimulate teachers’ intellectual growth and up-
grade 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 cur-
ricula 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 programs 
from kindergarten through grade 12 that dem-
onstrate increased competence and proficiency 
over time and grade. 
‘‘(c) GRANTS TO PARTNERSHIPS.— 
‘‘(1) IN GENERAL.—The Secretary may award 
grants, on a competitive basis, to eligible partnerships 
to enable the eligible partnerships to pay the Federal 
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475 
share of the costs of carrying out the authorized ac-
tivities 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 second 
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— 
‘‘(A) that include high-need local edu-
cational agencies; or 
‘‘(B) that emphasize the teaching of com-
monly taught and critical foreign languages in 
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an articulated program that demonstrates in-
creased competency and proficiency over grade 
and time. 
‘‘(d) APPLICATIONS.— 
‘‘(1) IN GENERAL.—Each eligible partnership de-
siring a grant under this section shall submit an ap-
plication to the Secretary at such time, in such man-
ner, 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 
improve student performance and to strengthen 
the quality of foreign language instruction; and 
‘‘(C) a description of— 
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‘‘(i) how the eligible partnership will 
carry out the authorized activities described 
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 teachers. 
‘‘(2) Recruiting university students with foreign 
language majors for teaching. 
‘‘(3) Promoting strong teaching skills for foreign 
language teachers and teacher educators. 
‘‘(4) Establishing foreign language summer 
workshops or institutes (including follow-up) for 
teachers. 
‘‘(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 
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such school, including (if applicable) a mechanism to 
integrate experiences from a summer workshop or in-
stitute. 
‘‘(7) Developing instruction materials. 
‘‘(f) EVALUATION AND ACCOUNTABILITY PLAN.—Each 
eligible partnership receiving a grant under this section 
shall develop an evaluation and accountability plan for ac-
tivities assisted under this section that includes strong per-
formance objectives. The plan shall include objectives 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 professional 
development activities. 
‘‘(g) REPORT.—Each eligible partnership receiving a 
grant under this section shall annually report to the Sec-
retary regarding the eligible partnership’s progress in meet-
ing the performance objectives described in subsection (f). 
‘‘(h) TERMINATION.—If the Secretary determines that 
an eligible partnership is not making substantial progress 
in meeting the performance objectives described in sub-
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section (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 section: 
‘‘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.’’. 
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 sec-
tion: 
‘‘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 
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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 sec-
tion: 
‘‘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 
‘‘(2) foster future international scientific collabo-
ration. 
‘‘(b) DEVELOPMENT.—The Secretary shall develop a 
program for the awarding of grants to institutions of higher 
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 
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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 workshops, 
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 Sec-
retary shall give priority to— 
‘‘(1) institutions that have programs focusing on 
curricula that combine the study of foreign languages 
and the study of science and technology and produce 
graduates who have both skills; and 
‘‘(2) institutions teaching critical foreign lan-
guages. 
‘‘(e) SCIENCE.—In this section, the term ‘science’ 
means any of the natural and physical sciences including 
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chemistry, biology, physics, and computer science. Such 
term does not include any of the social sciences. 
‘‘(f) 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-
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. 
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‘‘(b) DATA REQUIRED.—The Secretary shall require of 
each institution to which this paragraph applies under sub-
section (a), as part of the Integrated Postsecondary Edu-
cation 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, foundation, 
or any other entity or individual that contributed 
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 market 
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 ano-
nymity of their contribution. The data of institutions shall 
identify such donors as ‘anonymous’. This exemption does 
not apply to non-domestic donations. 
‘‘(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 requested 
under subsection (b), if the Secretary does not receive a re-
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port in accordance with the deadline established under sub-
section (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 determination 
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. 
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 ex-
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ception 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 personal 
or family member illness, the institution of higher education 
may also permit the fellowship recipient to interrupt peri-
ods 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 
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)— 
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(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 an-
nually thereafter in accordance with inflation as de-
termined by the Department of Labor’s Consumer 
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’’. 
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SEC. 702. GRADUATE ASSISTANCE IN AREAS OF NATIONAL 
NEED. 
(a) DESIGNATION OF AREAS OF NATIONAL NEED; PRI-
ORITY.—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 National Science 
Foundation, the Department of Defense, the Department of 
Homeland Security, the National Academy of Sciences, and 
the Bureau of Labor Statistics, the Secretary shall designate 
areas of national need. In making such designations, the 
Secretary shall take into consideration— 
‘‘(1) the extent to which the interest in the area 
is compelling; 
‘‘(2) the extent to which other Federal programs 
support postbaccalaureate study in the area con-
cerned; 
‘‘(3) an assessment of how the program may 
achieve the most significant impact with available re-
sources; 
‘‘(4) an assessment of current and future profes-
sional workforce needs of the United States; and 
‘‘(5) the priority described in subsection (c).’’; 
and 
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‘‘(C) AGREEMENT REQUIRED.—Prior to re-
ceiving the initial fellowship award, and upon 
the annual renewal of the fellowship award, a 
fellow shall sign an agreement with the Secretary 
memorializing this commitment to enter the pro-
fessoriate. 
‘‘(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 fellow-
ship 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 
requirement of this paragraph based on regula-
tions, promulgated pursuant to and consistent 
with criteria which determine the circumstances 
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‘‘(iv) Library of Congress National 
Digital Information and Infrastructure 
Preservation Program Copyright Working 
Group. 
‘‘(v) Association on Higher Education 
and Disability. 
‘‘(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. 
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