tion and the privacy of children, an eligible entity 
that receives a grant under this Act shall allow vest-
ed stakeholders, as described in paragraph (2), to 
have secure access, through the Internet, to an 
American Dream Account. 
(2) 
VESTED
STAKEHOLDERS.—The 
vested 
stakeholders that an eligible entity shall permit to 
access an American Dream Account are individuals 
(such as the student’s teachers, school counselors, 
counselors at an institution of higher education, 
school administrators, or other individuals) that are 
designated, in accordance with the Family Edu-
cational Rights and Privacy Act of 1974 (20 U.S.C. 
1232g), by the parent of a participating student in 
whose name such American Dream Account is held, 
as having permission to access the account. A stu-
dent’s parent may withdraw such designation from 
an individual at any time. 
(3) EXCEPTION
FOR
COLLEGE
SAVINGS
AC-
COUNT.—An eligible entity that receives a grant 
under this Act shall not be required to give vested 
stakeholders, as described in paragraph (2), access 
to the college savings account portion of a student’s 
American Dream Account. 
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(4) ADULT STUDENTS.—Notwithstanding para-
graphs (1), (2), and (3), if a participating student 
is age 18 or older, an eligible entity that receives a 
grant under this Act shall not provide access to such 
participating student’s American Dream Account 
without the student’s consent, in accordance with 
the Family Educational Rights and Privacy Act of 
1974 (20 U.S.C. 1232g). 
(5) INPUT OF STUDENT INFORMATION.—Stu-
dent data collected pursuant to subsection (a)(2)(A) 
shall be entered into an American Dream Account 
only by a school administrator or such administra-
tor’s designee. 
(c) PROHIBITION ON USE OF STUDENT INFORMA-
TION.—An eligible entity that receives a grant under this 
Act shall not use any student-level information or data for 
the purpose of soliciting, advertising, or marketing any fi-
nancial or non-financial consumer product or service that 
is offered by such eligible entity, or on behalf of any other 
person. 
(d) PROHIBITION ON THE USE OF GRANT FUNDS.— 
An eligible entity shall not use grant funds provided under 
this Act to provide the initial deposit into a college savings 
account portion of a student’s American Dream Account. 
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SEC. 7. REPORTS AND EVALUATIONS. 
(a) IN GENERAL.—Not later than 1 year after the 
Secretary has disbursed grants under this Act, and annu-
ally thereafter until each grant disbursed under section 4 
has ended, the Secretary shall prepare and submit a report 
to the appropriate committees of Congress, which shall in-
clude an evaluation of the effectiveness of the grant pro-
gram established under this Act. 
(b) CONTENTS.—The report described in subsection 
(a) shall— 
(1) list the grants that have been awarded 
under section 4(a); 
(2) include the number of students who have an 
American Dream Account established through a 
grant awarded under section 4(a); 
(3) provide data (including the interest accrued 
on college savings accounts that are part of an 
American Dream Account) in the aggregate, regard-
ing students who have an American Dream Account 
established through a grant awarded under section 
4(a), as compared to similarly situated students who 
do not have an American Dream Account; 
(4) identify best practices developed by the eli-
gible entities receiving grants under this Act; 
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(5) identify any issues related to student pri-
vacy and stakeholder accessibility to American 
Dream Accounts; 
(6) provide feedback from participating stu-
dents and the parents of such students about the 
grant program, including— 
(A) the impact of the program; 
(B) aspects of the program that are suc-
cessful; 
(C) aspects of the program that are not 
successful; and 
(D) any other data required by the Sec-
retary; and 
(7) provide recommendations for expanding the 
American Dream Accounts program. 
SEC. 8. ELIGIBILITY TO RECEIVE FEDERAL STUDENT FI-
NANCIAL AID. 
Notwithstanding any other provision of law, any 
funds that are in the college savings account portion of 
a student’s American Dream Account shall not affect such 
student’s eligibility to receive Federal student financial 
aid, including any Federal student financial aid under the 
Higher Education Act of 1965 (20 U.S.C. 1001), and 
shall not be considered in determining the amount of any 
such Federal student aid. 
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SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this Act $3,000,000 for fiscal year 2013, from existing 
Department of Education funds, and such sums as may 
be necessary for each subsequent fiscal year. 
SEC. 10. CONFORMING AMENDMENT. 
Section 480(j) of the Higher Education Act of 1965 
(20 U.S.C. 1087vv(j)) is amended by adding at the end 
the following: 
‘‘(5) Notwithstanding paragraph (1), amounts 
made available under the college savings account 
portion of an American Dream Account under the 
American Dream Accounts Act of 2012 shall not be 
treated as estimated financial assistance for pur-
poses of section 471(3).’’. 
Æ 
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