H. R. 2669 
One Hundred Tenth Congress 
of the 
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Thursday, 
the fourth day of January, two thousand and seven 
An Act 
To provide for reconciliation pursuant to section 601 of the concurrent resolution 
on the budget for fiscal year 2008. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘College Cost 
Reduction and Access Act’’. 
(b) REFERENCES.—Except as otherwise expressly provided, 
whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.). 
(c) EFFECTIVE DATE.—Except as otherwise expressly provided, 
the amendments made by this Act shall be effective on October 
1, 2007. 
TITLE I—GRANTS TO STUDENTS IN AT-
TENDANCE 
AT 
INSTITUTIONS 
OF 
HIGHER EDUCATION 
SEC. 101. TUITION SENSITIVITY. 
(a) AMENDMENT.—Section 401(b) (20 U.S.C. 1070a(b)) is 
amended— 
(1) by striking paragraph (3); and 
(2) by redesignating paragraphs (4) through (9) as para-
graphs (3) through (8), respectively. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall be effective with respect to determinations of Federal 
Pell Grant amounts for award years beginning on or after July 
1, 2007. 
(c) AUTHORIZATION AND APPROPRIATION OF FUNDS.—There is 
authorized to be appropriated, and there is appropriated, out of 
any money in the Treasury not otherwise appropriated, for the 
Department of Education to carry out the amendment made by 
subsection (a), $11,000,000 for fiscal year 2008. 
SEC. 102. MANDATORY PELL GRANT INCREASES. 
(a) EXTENSION
OF
AUTHORITY.—Section 401(a) (20 U.S.C. 
1070a(a)) is amended by striking ‘‘fiscal year 2004’’ and inserting 
‘‘fiscal year 2017’’.
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(b) FUNDING
FOR
INCREASES.—Section 401(b) (20 U.S.C. 
1070a(b)) is amended by adding at the end the following new 
paragraph: 
‘‘(9) ADDITIONAL FUNDS.— 
‘‘(A) IN GENERAL.—There are authorized to be appro-
priated, and there are appropriated, to carry out subpara-
graph (B) of this paragraph (in addition to any other 
amounts appropriated to carry out this section and out 
of any money in the Treasury not otherwise appropriated) 
the following amounts— 
‘‘(i) $2,030,000,000 for fiscal year 2008; 
‘‘(ii) $2,090,000,000 for fiscal year 2009; 
‘‘(iii) $3,030,000,000 for fiscal year 2010; 
‘‘(iv) $3,090,000,000 for fiscal year 2011; 
‘‘(v) $5,050,000,000 for fiscal year 2012; 
‘‘(vi) $105,000,000 for fiscal year 2013; 
‘‘(vii) $4,305,000,000 for fiscal year 2014; 
‘‘(viii) $4,400,000,000 for fiscal year 2015; 
‘‘(ix) $4,600,000,000 for fiscal year 2016; and 
‘‘(x) $4,900,000,000 for fiscal year 2017. 
‘‘(B) INCREASE IN FEDERAL PELL GRANTS.—The amounts 
made available pursuant to subparagraph (A) of this para-
graph shall be used to increase the amount of the maximum 
Federal Pell Grant for which a student shall be eligible 
during an award year, as specified in the last enacted 
appropriation Act applicable to that award year, by— 
‘‘(i) $490 for each of the award years 2008–2009 
and 2009–2010; 
‘‘(ii) $690 for each of the award years 2010–2011 
and 2011–2012; and 
‘‘(iii) $1,090 for award year 2012–2013. 
‘‘(C) ELIGIBILITY.—The Secretary shall only award an 
increased amount of a Federal Pell Grant under this section 
for any award year pursuant to the provisions of this 
paragraph to students who qualify for a Federal Pell Grant 
award under the maximum grant award enacted in the 
annual appropriation Act for such award year without 
regard to the provisions of this paragraph. 
‘‘(D) FORMULA
OTHERWISE
UNAFFECTED.—Except as 
provided in subparagraphs (B) and (C), nothing in this 
paragraph shall be construed to alter the requirements 
of this section, or authorize the imposition of additional 
requirements, for the determination and allocation of Fed-
eral Pell Grants under this section. 
‘‘(E) 
RATABLE
INCREASES
AND
DECREASES.—The 
amounts specified in subparagraph (B) shall be ratably 
increased or decreased to the extent that funds available 
under subparagraph (A) exceed or are less than (respec-
tively) the amount required to provide the amounts speci-
fied in subparagraph (B). 
‘‘(F) USE OF FISCAL YEAR FUNDS FOR AWARD YEARS.— 
The amounts made available by subparagraph (A) for any 
fiscal year shall be available and remain available for 
use under subparagraph (B) for the award year that begins 
in such fiscal year.’’.
H. R. 2669—3 
SEC. 103. UPWARD BOUND. 
Section 402C is further amended by adding at the end the 
following new subsection: 
‘‘(f) ADDITIONAL FUNDS.— 
‘‘(1) 
AUTHORIZATION
AND
APPROPRIATION.—There 
are 
authorized to be appropriated, and there are appropriated to 
the 
Secretary, 
from 
funds 
not 
otherwise 
appropriated, 
$57,000,000 for each of the fiscal years 2008 through 2011 
to carry out paragraph (2), except that any amounts that remain 
unexpended for such purpose for each of such fiscal years 
may be available for technical assistance and administration 
costs for the Upward Bound program. The authority to award 
grants under this subsection shall expire at the end of fiscal 
year 2011. 
‘‘(2) USE OF FUNDS.—The amounts made available by para-
graph (1) shall be available to provide assistance to all Upward 
Bound projects that did not receive assistance in fiscal year 
2007 and that have a grant score above 70. Such assistance 
shall be made available in the form of 4-year grants.’’. 
SEC. 104. TEACH GRANTS. 
Part A of title IV (20 U.S.C. 1070 et seq.) is amended by 
adding at the end the following new subpart: 
‘‘Subpart 9—TEACH Grants 
‘‘SEC. 420L. DEFINITIONS. 
‘‘For the purposes of this subpart: 
‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligible institution’ 
means an institution of higher education, as defined in section 
102, that the Secretary determines— 
‘‘(A) provides high quality teacher preparation and 
professional development services, including extensive clin-
ical experience as a part of pre-service preparation; 
‘‘(B) is financially sound; 
‘‘(C) provides pedagogical course work, or assistance 
in the provision of such coursework, including the moni-
toring of student performance, and formal instruction 
related to the theory and practices of teaching; and 
‘‘(D) provides supervision and support services to 
teachers, or assistance in the provision of such services, 
including mentoring focused on developing effective 
teaching skills and strategies. 
‘‘(2) POST-BACCALAUREATE.—The term ‘post-baccalaureate’ 
means a program of instruction for individuals who have com-
pleted a baccalaureate degree, that does not lead to a graduate 
degree, and that consists of courses required by a State in 
order for a teacher candidate to receive a professional certifi-
cation or licensing credential that is required for employment 
as a teacher in an elementary school or secondary school in 
that State, except that such term shall not include any program 
of instruction offered by an eligible institution that offers a 
baccalaureate degree in education. 
‘‘(3) TEACHER
CANDIDATE.—The term ‘teacher candidate’ 
means a student or teacher described in subparagraph (A) 
or (B) of section 420N(a)(2).
H. R. 2669—4 
‘‘SEC. 420M. PROGRAM ESTABLISHED. 
‘‘(a) PROGRAM AUTHORITY.— 
‘‘(1) PAYMENTS REQUIRED.—The Secretary shall pay to each 
eligible institution such sums as may be necessary to pay 
to each teacher candidate who files an application and agree-
ment in accordance with section 420N, and who qualifies under 
paragraph (2) of section 420N(a), a TEACH Grant in the 
amount of $4,000 for each academic year during which that 
teacher candidate is in attendance at the institution. 
‘‘(2) REFERENCES.—Grants made under paragraph (1) shall 
be known as ‘Teacher Education Assistance for College and 
Higher Education Grants’ or ‘TEACH Grants’. 
‘‘(b) PAYMENT METHODOLOGY.— 
‘‘(1) PREPAYMENT.—Not less than 85 percent of any funds 
provided to an eligible institution under subsection (a) shall 
be advanced to the eligible institution prior to the start of 
each payment period and shall be based upon an amount 
requested by the institution as needed to pay teacher candidates 
until such time as the Secretary determines and publishes 
in the Federal Register with an opportunity for comment, an 
alternative payment system that provides payments to institu-
tions in an accurate and timely manner, except that this sen-
tence shall not be construed to limit the authority of the Sec-
retary to place an institution on a reimbursement system of 
payment. 
‘‘(2) DIRECT PAYMENT.—Nothing in this section shall be 
interpreted to prohibit the Secretary from paying directly to 
teacher candidates, in advance of the beginning of the academic 
term, an amount for which teacher candidates are eligible, 
in cases where the eligible institution elects not to participate 
in the disbursement system required by paragraph (1). 
‘‘(3) DISTRIBUTION OF GRANTS TO TEACHER CANDIDATES.— 
Payments under this subpart shall be made, in accordance 
with regulations promulgated by the Secretary for such purpose, 
in such manner as will best accomplish the purposes of this 
subpart. Any disbursement allowed to be made by crediting 
the teacher candidate’s account shall be limited to tuition and 
fees and, in the case of institutionally-owned housing, room 
and board. The teacher candidate may elect to have the institu-
tion provide other such goods and services by crediting the 
teacher candidate’s account. 
‘‘(c) REDUCTIONS IN AMOUNT.— 
‘‘(1) PART-TIME STUDENTS.—In any case where a teacher 
candidate attends an eligible institution on less than a full- 
time basis (including a teacher candidate who attends an 
eligible institution on less than a half-time basis) during any 
academic year, the amount of a grant under this subpart for 
which that teacher candidate is eligible shall be reduced in 
proportion to the degree to which that teacher candidate is 
not attending on a full-time basis, in accordance with a schedule 
of reductions established by the Secretary for the purposes 
of this subpart, computed in accordance with this subpart. 
Such schedule of reductions shall be established by regulation 
and published in the Federal Register in accordance with sec-
tion 482 of this Act. 
‘‘(2) NO EXCEEDING COST.—The amount of a grant awarded 
under this subpart, in combination with Federal assistance
H. R. 2669—5 
and other student assistance, shall not exceed the cost of attend-
ance (as defined in section 472) at the eligible institution at 
which that teacher candidate is in attendance. If, with respect 
to any teacher candidate for any academic year, it is determined 
that the amount of a TEACH Grant exceeds the cost of attend-
ance for that year, the amount of the TEACH Grant shall 
be reduced until such grant does not exceed the cost of attend-
ance at the eligible institution. 
‘‘(d) PERIOD OF ELIGIBILITY FOR GRANTS.— 
‘‘(1) UNDERGRADUATE
AND
POST-BACCALAUREATE
STU-
DENTS.—The period during which an undergraduate or post- 
baccalaureate student may receive grants under this subpart 
shall be the period required for the completion of the first 
undergraduate baccalaureate or post-baccalaureate course of 
study being pursued by the teacher candidate at the eligible 
institution at which the teacher candidate is in attendance, 
except that— 
‘‘(A) any period during which the teacher candidate 
is enrolled in a noncredit or remedial course of study as 
described in paragraph (3) shall not be counted for the 
purpose of this paragraph; and 
‘‘(B) the total amount that a teacher candidate may 
receive under this subpart for undergraduate or post-bacca-
laureate study shall not exceed $16,000. 
‘‘(2) GRADUATE
STUDENTS.—The period during which a 
graduate student may receive grants under this subpart shall 
be the period required for the completion of a master’s degree 
course of study pursued by the teacher candidate at the eligible 
institution at which the teacher candidate is in attendance, 
except that the total amount that a teacher candidate may 
receive under this subpart for graduate study shall not exceed 
$8,000. 
‘‘(3) REMEDIAL COURSE; STUDY ABROAD.—Nothing in this 
section shall be construed to exclude from eligibility courses 
of study which are noncredit or remedial in nature (including 
courses in English language acquisition) which are determined 
by the eligible institution to be necessary to help the teacher 
candidate be prepared for the pursuit of a first undergraduate 
baccalaureate or post-baccalaureate degree or certificate or, 
in the case of courses in English language instruction, to be 
necessary to enable the teacher candidate to utilize already 
existing knowledge, training, or skills. Nothing in this section 
shall be construed to exclude from eligibility programs of study 
abroad that are approved for credit by the home institution 
at which the teacher candidate is enrolled. 
‘‘SEC. 420N. APPLICATIONS; ELIGIBILITY. 
‘‘(a) APPLICATIONS; DEMONSTRATION OF ELIGIBILITY.— 
‘‘(1) FILING REQUIRED.—The Secretary shall periodically set 
dates by which teacher candidates shall file applications for 
grants under this subpart. Each teacher candidate desiring 
a grant under this subpart for any year shall file an application 
containing such information and assurances as the Secretary 
may determine necessary to enable the Secretary to carry out 
the functions and responsibilities of this subpart.
H. R. 2669—6 
‘‘(2) DEMONSTRATION OF TEACH GRANT ELIGIBILITY.—Each 
application submitted under paragraph (1) shall contain such 
information as is necessary to demonstrate that— 
‘‘(A) if the applicant is an enrolled student— 
‘‘(i) the student is an eligible student for purposes 
of section 484; 
‘‘(ii) the student— 
‘‘(I) has a grade point average that is deter-
mined, under standards prescribed by the Sec-
retary, to be comparable to a 3.25 average on 
a zero to 4.0 scale, except that, if the student 
is in the first year of a program of undergraduate 
education, such grade point average shall be deter-
mined on the basis of the student’s cumulative 
secondary school grade point average; or 
‘‘(II) displayed high academic aptitude by 
receiving a score above the 75th percentile on at 
least one of the batteries in an undergraduate, 
post-baccalaureate, or graduate school admissions 
test; and 
‘‘(iii) the student is completing coursework and 
other requirements necessary to begin a career in 
teaching, or plans to complete such coursework and 
requirements prior to graduating; or 
‘‘(B) if the applicant is a current or prospective teacher 
applying for a grant to obtain a graduate degree— 
‘‘(i) the applicant is a teacher or a retiree from 
another occupation with expertise in a field in which 
there is a shortage of teachers, such as mathematics, 
science, special education, English language acquisi-
tion, or another high-need subject; or 
‘‘(ii) the applicant is or was a teacher who is using 
high-quality alternative certification routes, such as 
Teach for America, to get certified. 
‘‘(b) AGREEMENTS
TO SERVE.—Each application under sub-
section (a) shall contain or be accompanied by an agreement by 
the applicant that— 
‘‘(1) the applicant will— 
‘‘(A) serve as a full-time teacher for a total of not 
less than 4 academic years within 8 years after completing 
the course of study for which the applicant received a 
TEACH Grant under this subpart; 
‘‘(B) teach in a school described in section 465(a)(2)(A); 
‘‘(C) teach in any of the following fields— 
‘‘(i) mathematics; 
‘‘(ii) science; 
‘‘(iii) a foreign language; 
‘‘(iv) bilingual education; 
‘‘(v) special education; 
‘‘(vi) as a reading specialist; or 
‘‘(vii) another field documented as high-need by 
the Federal Government, State government, or local 
educational agency, and approved by the Secretary; 
‘‘(D) submit evidence of such employment in the form 
of a certification by the chief administrative officer of the 
school upon completion of each year of such service; and
H. R. 2669—7 
‘‘(E) comply with the requirements for being a highly 
qualified teacher as defined in section 9101 of the 
Elementary and Secondary Education Act of 1965; and 
‘‘(2) in the event that the applicant is determined to have 
failed or refused to carry out such service obligation, the sum 
of the amounts of any TEACH Grants received by such 
applicant will be treated as a loan and collected from the 
applicant in accordance with subsection (c) and the regulations 
thereunder. 
‘‘(c) REPAYMENT FOR FAILURE TO COMPLETE SERVICE.—In the 
event that any recipient of a grant under this subpart fails or 
refuses to comply with the service obligation in the agreement 
under subsection (b), the sum of the amounts of any TEACH Grants 
received by such recipient shall, upon a determination of such 
a failure or refusal in such service obligation, be treated as a 
Federal Direct Unsubsidized Stafford Loan under part D of title 
IV, and shall be subject to repayment, together with interest thereon 
accruing from the date of the grant award, in accordance with 
terms and conditions specified by the Secretary in regulations under 
this subpart. 
‘‘SEC. 420O. PROGRAM PERIOD AND FUNDING. 
‘‘Beginning on July 1, 2008, there shall be available to the 
Secretary to carry out this subpart, from funds not otherwise appro-
priated, such sums as may be necessary to provide TEACH Grants 
in accordance with this subpart to each eligible applicant.’’. 
TITLE II—STUDENT LOAN BENEFITS, 
TERMS, AND CONDITIONS 
SEC. 201. INTEREST RATE REDUCTIONS. 
(a) FFEL INTEREST RATES.— 
(1) Section 427A(l) (20 U.S.C. 1077a(l)) is amended by 
adding at the end the following new paragraph: 
‘‘(4) REDUCED
RATES
FOR
UNDERGRADUATE
SUBSIDIZED 
LOANS.—Notwithstanding subsection (h) and paragraph (1) of 
this subsection, with respect to any loan to an undergraduate 
student made, insured, or guaranteed under this part (other 
than a loan made pursuant to section 428B, 428C, or 428H) 
for which the first disbursement is made on or after July 
1, 2006, and before July 1, 2012, the applicable rate of interest 
shall be as follows: 
‘‘(A) For a loan for which the first disbursement is 
made on or after July 1, 2006, and before July 1, 2008, 
6.8 percent on the unpaid principal balance of the loan. 
‘‘(B) For a loan for which the first disbursement is 
made on or after July 1, 2008, and before July 1, 2009, 
6.0 percent on the unpaid principal balance of the loan. 
‘‘(C) For a loan for which the first disbursement is 
made on or after July 1, 2009, and before July 1, 2010, 
5.6 percent on the unpaid principal balance of the loan. 
‘‘(D) For a loan for which the first disbursement is 
made on or after July 1, 2010, and before July 1, 2011, 
4.5 percent on the unpaid principal balance of the loan.
H. R. 2669—8 
‘‘(E) For a loan for which the first disbursement is 
made on or after July 1, 2011, and before July 1, 2012, 
3.4 percent on the unpaid principal balance of the loan.’’. 
(2) 
SPECIAL
ALLOWANCE
CROSS
REFERENCE.—Section 
438(b)(2)(I)(ii)(II) (20 U.S.C. 1087–1(b)(2)(I)(ii)(II)) is amended 
by striking ‘‘section 427A(l)(1)’’ and inserting ‘‘section 427A(l)(1) 
or (l)(4)’’. 
(b) DIRECT LOAN INTEREST RATES.—Section 455(b)(7) (20 U.S.C. 
1087e(b)(7)) is amended by adding at the end the following new 
subparagraph: 
‘‘(D) REDUCED RATES FOR UNDERGRADUATE FDSL.—Not-
withstanding the preceding paragraphs of this subsection 
and subparagraph (A) of this paragraph, for Federal Direct 
Stafford Loans made to undergraduate students for which 
the first disbursement is made on or after July 1, 2006, 
and before July 1, 2012, the applicable rate of interest 
shall be as follows: 
‘‘(i) For a loan for which the first disbursement 
is made on or after July 1, 2006, and before July 
1, 2008, 6.8 percent on the unpaid principal balance 
of the loan. 
‘‘(ii) For a loan for which the first disbursement 
is made on or after July 1, 2008, and before July 
1, 2009, 6.0 percent on the unpaid principal balance 
of the loan. 
‘‘(iii) For a loan for which the first disbursement 
is made on or after July 1, 2009, and before July 
1, 2010, 5.6 percent on the unpaid principal balance 
of the loan. 
‘‘(iv) For a loan for which the first disbursement 
is made on or after July 1, 2010, and before July 
1, 2011, 4.5 percent on the unpaid principal balance 
of the loan. 
‘‘(v) For a loan for which the first disbursement 
is made on or after July 1, 2011, and before July 
1, 2012, 3.4 percent on the unpaid principal balance 
of the loan.’’. 
SEC. 202. STUDENT LOAN DEFERMENT FOR CERTAIN MEMBERS OF 
THE ARMED FORCES. 
(a) 
FEDERAL
FAMILY
EDUCATION
LOANS.—Section 
428(b)(1)(M)(iii) (20 U.S.C. 1078(b)(1)(M)(iii)) is amended— 
(1) in the matter preceding subclause (I), by striking ‘‘not 
in excess of 3 years’’; 
(2) in subclause (II), by striking ‘‘; or’’ and inserting a 
comma; and 
(3) by adding at the end the following: 
‘‘and for the 180-day period following the demobiliza-
tion date for the service described in subclause (I) 
or (II); or’’. 
(b) 
DIRECT
LOANS.—Section 
455(f)(2)(C) 
(20 
U.S.C. 
1087e(f)(2)(C)) is amended— 
(1) in the matter preceding clause (i), by striking ‘‘not 
in excess of 3 years’’; 
(2) in clause (ii), by striking ‘‘; or’’ and inserting a comma; 
and 
(3) by adding at the end the following:
H. R. 2669—9 
‘‘and for the 180-day period following the demobilization 
date for the service described in clause (i) or (ii); or’’. 
(c) 
PERKINS
LOANS.—Section 
464(c)(2)(A)(iii) 
(20 
U.S.C. 
1087dd(c)(2)(A)(iii)) is amended— 
(1) in the matter preceding subclause (I), by striking ‘‘not 
in excess of 3 years’’; 
(2) in subclause (II), by striking the semicolon and inserting 
a comma; and 
(3) by adding at the end the following: 
‘‘and for the 180-day period following the demobilization date for 
the service described in subclause (I) or (II);’’. 
(d) APPLICABILITY.—Section 8007(f) of the Higher Education 
Reconciliation Act of 2005 (20 U.S.C. 1078 note) is amended by 
striking ‘‘loans for which’’ and all that follows through the period 
at the end and inserting ‘‘all loans under title IV of the Higher 
Education Act of 1965.’’. 
SEC. 203. INCOME-BASED REPAYMENT. 
(a) AMENDMENT.—Part G of title IV (20 U.S.C. 1088 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 493C. INCOME-BASED REPAYMENT. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) EXCEPTED PLUS LOAN.—The term ‘excepted PLUS loan’ 
means a loan under section 428B, or a Federal Direct PLUS 
Loan, that is made, insured, or guaranteed on behalf of a 
dependent student. 
‘‘(2) EXCEPTED CONSOLIDATION LOAN.—The term ‘excepted 
consolidation loan’ means a consolidation loan under section 
428C, or a Federal Direct Consolidation Loan, if the proceeds 
of such loan were used to the discharge the liability on an 
excepted PLUS loan. 
‘‘(3) PARTIAL FINANCIAL HARDSHIP.—The term ‘partial finan-
cial hardship’, when used with respect to a borrower, means 
that for such borrower— 
‘‘(A) the annual amount due on the total amount of 
loans made, insured, or guaranteed under part B or D 
(other than an excepted PLUS loan or excepted consolida-
tion loan) to a borrower as calculated under the standard 
repayment 
plan 
under 
section 
428(b)(9)(A)(i) 
or 
455(d)(1)(A), based on a 10-year repayment period; exceeds 
‘‘(B) 15 percent of the result obtained by calculating, 
on at least an annual basis, the amount by which— 
‘‘(i) the borrower’s, and the borrower’s spouse’s 
(if applicable), adjusted gross income; exceeds 
‘‘(ii) 150 percent of the poverty line applicable to 
the borrower’s family size as determined under section 
673(2) of the Community Services Block Grant Act 
(42 U.S.C. 9902(2)). 
‘‘(b) INCOME-BASED REPAYMENT PROGRAM AUTHORIZED.—Not-
withstanding any other provision of this Act, the Secretary shall 
carry out a program under which— 
‘‘(1) a borrower of any loan made, insured, or guaranteed 
under part B or D (other than an excepted PLUS loan or 
excepted consolidation loan) who has a partial financial hard-
ship (whether or not the borrower’s loan has been submitted 
to a guaranty agency for default aversion or is already in 
default) may elect, during any period the borrower has the
H. R. 2669—10 
partial financial hardship, to have the borrower’s aggregate 
monthly payment for all such loans not exceed the result 
described in subsection (a)(3)(B) divided by 12; 
‘‘(2) the holder of such a loan shall apply the borrower’s 
monthly payment under this subsection first toward interest 
due on the loan, next toward any fees due on the loan, and 
then toward the principal of the loan; 
‘‘(3) any interest due and not paid under paragraph (2)— 
‘‘(A) shall, on subsidized loans, be paid by the Secretary 
for a period of not more than 3 years after the date of 
the borrower’s election under paragraph (1), except that 
such period shall not include any period during which 
the borrower is in deferment due to an economic hardship 
described in section 435(o); and 
‘‘(B) be capitalized— 
‘‘(i) in the case of a subsidized loan, subject to 
subparagraph (A), at the time the borrower— 
‘‘(I) ends the election to make income-based 
repayment under this subsection; or 
‘‘(II) begins making payments of not less than 
the amount specified in paragraph (6)(A); or 
‘‘(ii) in the case of an unsubsidized loan, at the 
time the borrower— 
‘‘(I) ends the election to make income-based 
repayment under this subsection; or 
‘‘(II) begins making payments of not less than 
the amount specified in paragraph (6)(A); 
‘‘(4) any principal due and not paid under paragraph (2) 
shall be deferred; 
‘‘(5) the amount of time the borrower makes monthly pay-
ments under paragraph (1) may exceed 10 years; 
‘‘(6) if the borrower no longer has a partial financial hard-
ship or no longer wishes to continue the election under this 
subsection, then— 
‘‘(A) the maximum monthly payment required to be 
paid for all loans made to the borrower under part B 
or D (other than an excepted PLUS loan or excepted consoli-
dation loan) shall not exceed the monthly amount cal-
culated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based 
on a 10-year repayment period, when the borrower first 
made the election described in this subsection; and 
‘‘(B) the amount of time the borrower is permitted 
to repay such loans may exceed 10 years; 
‘‘(7) the Secretary shall repay or cancel any outstanding 
balance of principal and interest due on all loans made under 
part B or D (other than a loan under section 428B or a Federal 
Direct PLUS Loan) to a borrower who— 
‘‘(A) at any time, elected to participate in income-based 
repayment under paragraph (1); and 
‘‘(B) for a period of time prescribed by the Secretary, 
not to exceed 25 years, meets 1 or more of the following 
requirements— 
‘‘(i) has made reduced monthly payments under 
paragraph (1) or paragraph (6); 
‘‘(ii) has made monthly payments of not less than 
the 
monthly 
amount 
calculated 
under 
section 
428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year
H. R. 2669—11 
repayment period, when the borrower first made the 
election described in this subsection; 
‘‘(iii) has made payments of not less than the pay-
ments required under a standard repayment plan 
under section 428(b)(9)(A)(i) or 455(d)(1)(A) with a 
repayment period of 10 years; 
‘‘(iv) has made payments under an income-contin-
gent repayment plan under section 455(d)(1)(D); or 
‘‘(v) has been in deferment due to an economic 
hardship described in section 435(o); 
‘‘(8) a borrower who is repaying a loan made under part 
B or D pursuant to income-based repayment may elect, at 
any time, to terminate repayment pursuant to income-based 
repayment and repay such loan under the standard repayment 
plan; and 
‘‘(9) the special allowance payment to a lender calculated 
under section 438(b)(2)(I), when calculated for a loan in repay-
ment under this section, shall be calculated on the principal 
balance of the loan and on any accrued interest unpaid by 
the borrower in accordance with this section. 
‘‘(c) ELIGIBILITY DETERMINATIONS.—The Secretary shall estab-
lish procedures for annually determining the borrower’s eligibility 
for income-based repayment, including verification of a borrower’s 
annual income and the annual amount due on the total amount 
of loans made, insured, or guaranteed under part B or D (other 
than an excepted PLUS loan or excepted consolidation loan), and 
such other procedures as are necessary to effectively implement 
income-based repayment under this section. The Secretary shall 
consider, but is not limited to, the procedures established in accord-
ance with section 455(e)(1) or in connection with income sensitive 
repayment 
schedules 
under 
section 
428(b)(9)(A)(iii) 
or 
428C(b)(1)(E).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 428C (20 U.S.C. 1078–3) is amended— 
(A) in subsection (a)(3)(B)(i), by amending subclause 
(V) to read as follows: 
‘‘(V) an individual may obtain a subsequent 
consolidation loan under section 455(g) only— 
‘‘(aa) for the purposes of obtaining an 
income contingent repayment plan, and only 
if the loan has been submitted to the guaranty 
agency for default aversion; or 
‘‘(bb) for the purposes of using the public 
service loan forgiveness program under section 
455(m).’’; 
(B) in the first sentence of subsection (b)(5), by 
inserting ‘‘or chooses to obtain a consolidation loan for 
the purposes of using the public service loan forgiveness 
program offered under section 455(m),’’ after ‘‘from such 
a lender,’’; and 
(C) in the second sentence of such subsection, by 
inserting before the period the following: ‘‘, except that 
if a borrower intends to be eligible to use the public service 
loan forgiveness program under section 455(m), such loan 
shall be repaid using one of the repayment options 
described in section 455(m)(1)(A)’’.
H. R. 2669—12 
(2) Section 428C (20 U.S.C. 1078–3) (as amended by para-
graph (1) of this subsection) is amended— 
(A) in subsection (a)(3)(B)(i)(V)(aa)— 
(i) by striking ‘‘an income contingent repayment 
plan,’’ and inserting ‘‘income contingent repayment or 
income-based repayment,’’; and 
(ii) by inserting ‘‘or if the loan is already in default’’ 
before the semicolon; 
(B) in the first sentence of subsection (b)(5), by 
inserting ‘‘or income-based repayment terms’’ after ‘‘income- 
sensitive repayment terms’’; and 
(C) in the second sentence of such subsection, by 
inserting ‘‘, pursuant to income-based repayment under 
section 493C,’’ after ‘‘part D of this title’’. 
(3) Section 455(d)(1)(D) (20 U.S.C. 1087e(d)(1)(D)) is 
amended by inserting ‘‘made on behalf of a dependent student’’ 
after ‘‘PLUS loan’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall be effective on July 
1, 2009. 
(2) EXCEPTION.—The amendments made by subsection 
(b)(1) shall be effective on July 1, 2008. 
SEC. 204. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE DUTY. 
Part G of title IV is further amended by adding after section 
493C (as added by section 203 of this Act) the following new 
section: 
‘‘SEC. 493D. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE 
DUTY. 
‘‘(a) DEFERRAL
OF
LOAN
REPAYMENT
FOLLOWING
ACTIVE 
DUTY.—In addition to any deferral of repayment of a loan made 
under this title pursuant to section 428(b)(1)(M)(iii), 455(f)(2)(C), 
or 464(c)(2)(A)(iii), a borrower of a loan under this title who is 
a member of the National Guard or other reserve component of 
the Armed Forces of the United States, or a member of such 
Armed Forces in a retired status, is called or ordered to active 
duty, and is enrolled, or was enrolled within six months prior 
to the activation, in a program of instruction at an eligible institu-
tion, shall be eligible for a deferment during the 13 months following 
the conclusion of such service, except that a deferment under this 
subsection shall expire upon the borrower’s return to enrolled stu-
dent status. 
‘‘(b) ACTIVE DUTY.—Notwithstanding section 481(d), in this sec-
tion, the term ‘active duty’ has the meaning given such term in 
section 101(d)(1) of title 10, United States Code, except that such 
term— 
‘‘(1) does not include active duty for training or attendance 
at a service school; but 
‘‘(2) includes, in the case of members of the National Guard, 
active State duty.’’. 
SEC. 205. MAXIMUM REPAYMENT PERIOD. 
Section 455(e) (20 U.S.C. 1087e(e)) is amended by adding at 
the end the following:
H. R. 2669—13 
‘‘(7) MAXIMUM
REPAYMENT
PERIOD.—In calculating the 
extended period of time for which an income contingent repay-
ment plan under this subsection may be in effect for a borrower, 
the Secretary shall include all time periods during which a 
borrower of loans under part B, part D, or part E— 
‘‘(A) is not in default on any loan that is included 
in the income contingent repayment plan; and 
‘‘(B)(i) is in deferment due to an economic hardship 
described in section 435(o); 
‘‘(ii) makes monthly payments under paragraph (1) 
or (6) of section 493C(b); 
‘‘(iii) makes monthly payments of not less than the 
monthly amount calculated under section 428(b)(9)(A)(i) 
or subsection (d)(1)(A), based on a 10-year repayment 
period, when the borrower first made the election described 
in section 493C(b)(1); 
‘‘(iv) makes payments of not less than the payments 
required under a standard repayment plan under section 
428(b)(9)(A)(i) or subsection (d)(1)(A) with a repayment 
period of 10 years; or 
‘‘(v) makes payments under an income contingent 
repayment plan under subsection (d)(1)(D).’’. 
TITLE III—FEDERAL FAMILY 
EDUCATION LOAN PROGRAM 
SEC. 301. GUARANTY AGENCY COLLECTION RETENTION. 
Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 1078(c)(6)(A)(ii)) 
is amended to read as follows: 
‘‘(ii) an amount equal to 24 percent of such pay-
ments for use in accordance with section 422B, except 
that— 
‘‘(I) beginning October 1, 2003 and ending Sep-
tember 30, 2007, this clause shall be applied by 
substituting ‘23 percent’ for ‘24 percent’; and 
‘‘(II) beginning October 1, 2007, this clause 
shall be applied by substituting ‘16 percent’ for 
‘24 percent’.’’. 
SEC. 302. ELIMINATION OF EXCEPTIONAL PERFORMER STATUS FOR 
LENDERS. 
(a) ELIMINATION OF STATUS.—Part B of title IV (20 U.S.C. 
1071 et seq.) is amended by striking section 428I (20 U.S.C. 1078– 
9). 
(b) CONFORMING AMENDMENTS.—Part B of title IV is further 
amended— 
(1) in section 428(c)(1) (20 U.S.C. 1078(c)(1))— 
(A) by striking subparagraph (D); and 
(B) by redesignating subparagraphs (E) through (H) 
as subparagraphs (D) through (G), respectively; and 
(2) in section 438(b)(5) (20 U.S.C. 1087–1(b)(5)), by striking 
the matter following subparagraph (B). 
(c) EFFECTIVE DATE.—The amendments made by subsections 
(a) and (b) shall be effective on October 1, 2007, except that section 
428I of the Higher Education Act of 1965 (as in effect on the 
day before the date of enactment of this Act) shall apply to eligible
H. R. 2669—14 
lenders that received a designation under subsection (a) of such 
section prior to October 1, 2007, for the remainder of the year 
for which the designation was made. 
SEC. 303. REDUCTION OF LENDER INSURANCE PERCENTAGE. 
(a) AMENDMENT.—Subparagraph (G) of section 428(b)(1) (20 
U.S.C. 1078(b)(1)(G)) is amended to read as follows: 
‘‘(G) insures 95 percent of the unpaid principal of loans 
insured under the program, except that— 
‘‘(i) such program shall insure 100 percent of the 
unpaid principal of loans made with funds advanced 
pursuant to section 428(j) or 439(q); and 
‘‘(ii) notwithstanding the preceding provisions of 
this subparagraph, such program shall insure 100 per-
cent of the unpaid principal amount of exempt claims 
as defined in subsection (c)(1)(G);’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall be effective on October 1, 2012, and shall apply with respect 
to loans made on or after such date. 
SEC. 304. DEFINITIONS. 
Section 435 (20 U.S.C. 1085) is amended— 
(1) in subsection (o)(1)— 
(A) in subparagraph (A)(ii)— 
(i) by striking ‘‘100 percent of the poverty line 
for a family of 2’’ and inserting ‘‘150 percent of the 
poverty line applicable to the borrower’s family size’’; 
and 
(ii) by inserting ‘‘or’’ after the semicolon; 
(B) by striking subparagraph (B); and 
(C) by redesignating subparagraph (C) as subpara-
graph (B); 
(2) in subsection (o)(2), by striking ‘‘(1)(C)’’ and inserting 
‘‘(1)(B)’’; and 
(3) by adding at the end the following: 
‘‘(p) ELIGIBLE NOT-FOR-PROFIT HOLDER.— 
‘‘(1) DEFINITION.—Subject to the limitations in paragraph 
(2) and the prohibition in paragraph (3), the term ‘eligible 
not-for-profit holder’ means an eligible lender under subsection 
(d) (except for an eligible lender described in subsection 
(d)(1)(E)) that requests a special allowance payment under sec-
tion 438(b)(2)(I)(vi)(II) or a payment under section 771 and 
that is— 
‘‘(A) a State, or a political subdivision, authority, 
agency, or other instrumentality thereof, including such 
entities that are eligible to issue bonds described in section 
1.103–1 of title 26, Code of Federal Regulations, or section 
144(b) of the Internal Revenue Code of 1986; 
‘‘(B) an entity described in section 150(d)(2) of such 
Code that has not made the election described in section 
150(d)(3) of such Code; 
‘‘(C) an entity described in section 501(c)(3) of such 
Code; or 
‘‘(D) a trustee acting as an eligible lender on behalf 
of a State, political subdivision, authority, agency, 
instrumentality, or other entity described in subparagraph 
(A), (B), or (C). 
‘‘(2) LIMITATIONS.—
H. R. 2669—15 
‘‘(A) EXISTING ON DATE OF ENACTMENT.— 
‘‘(i) IN GENERAL.—An eligible lender shall not be 
an eligible not-for-profit holder under this Act unless 
such lender— 
‘‘(I) 
was 
a 
State, 
political 
subdivision, 
authority, agency, instrumentality, or other entity 
described in paragraph (1)(A), (B), or (C) that was, 
on the date of the enactment of the College Cost 
Reduction and Access Act, acting as an eligible 
lender under subsection (d) (other than an eligible 
lender described in subsection (d)(1)(E)); or 
‘‘(II) is a trustee acting as an eligible lender 
under this Act on behalf of such a State, political 
subdivision, authority, agency, instrumentality, or 
other entity described in subclause (I) of this 
clause. 
‘‘(ii) EXCEPTION.—Notwithstanding clause (i), a 
State may elect, in accordance with regulations of the 
Secretary, to waive the requirements this subpara-
graph for a new not-for-profit holder determined by 
the State to be necessary to carry out a public purpose 
of such State, except that a State may not make such 
election with respect the requirements of clause (i)(II). 
‘‘(B) NO FOR-PROFIT OWNERSHIP OR CONTROL.—No polit-
ical subdivision, authority, agency, instrumentality, or 
other entity described in paragraph (1)(A), (B), or (C) shall 
be an eligible not-for-profit holder under this Act if such 
entity is owned or controlled, in whole or in part, by a 
for-profit entity. 
‘‘(C) SOLE
OWNERSHIP
OF
LOANS
AND
INCOME.—No 
State, political subdivision, authority, agency, instrumen-
tality, or other entity described in paragraph (1)(A), (B), 
or (C) shall be an eligible not-for-profit holder under this 
Act with respect to any loan, or income from any loan, 
unless the State, political subdivision, authority, agency, 
instrumentality, or other entity described in paragraph 
(1)(A), (B), or (C) is the sole owner of the beneficial interest 
in such loan and the income from such loan. 
‘‘(D) TRUSTEE COMPENSATION LIMITATIONS.—A trustee 
described in paragraph (1)(D) shall not receive compensa-
tion as consideration for acting as an eligible lender on 
behalf of an entity described in described in paragraph 
(1)(A), (B), or (C) in excess of reasonable and customary 
fees. 
‘‘(E) RULE OF CONSTRUCTION.—For purposes of sub-
paragraphs (B), (C), and (D) of this paragraph, a State, 
political subdivision, authority, agency, instrumentality, or 
other entity described in paragraph (1)(A), (B), or (C) shall 
not— 
‘‘(i) be deemed to be owned or controlled, in whole 
or in part, by a for-profit entity, or 
‘‘(ii) lose its status as the sole owner of a beneficial 
interest in a loan and the income from a loan by 
that 
political 
subdivision, 
authority, 
agency, 
instrumentality, or other entity, 
by granting a security interest in, or otherwise pledging 
as collateral, such loan, or the income from such loan,
H. R. 2669—16 
to secure a debt obligation in the operation of an arrange-
ment described in paragraph (1)(D). 
‘‘(3) PROHIBITION.—In the case of a loan for which the 
special 
allowance 
payment 
is 
calculated 
under 
section 
438(b)(2)(I)(vi)(II) and that is sold by the eligible not-for-profit 
holder holding the loan to an entity that is not an eligible 
not-for-profit holder under this Act, the special allowance pay-
ment for such loan shall, beginning on the date of the sale, 
no longer be calculated under section 438(b)(2)(I)(vi)(II) and 
shall be calculated under section 438(b)(2)(I)(vi)(I) instead. 
‘‘(4) REGULATIONS.—Not later than 1 year after the date 
of enactment of the College Cost Reduction and Access Act, 
the Secretary shall promulgate regulations in accordance with 
the provisions of this subsection.’’. 
SEC. 305. SPECIAL ALLOWANCES. 
(a) REDUCTION OF LENDER SPECIAL ALLOWANCE PAYMENTS.— 
Section 438(b)(2)(I) (20 U.S.C. 1087–1(b)(2)(I)) is amended— 
(1) in clause (i), by striking ‘‘clauses (ii), (iii), and (iv)’’ 
and inserting ‘‘the following clauses’’; 
(2) in clause (v)(III), by striking ‘‘clauses (ii), (iii), and 
(iv)’’ and inserting ‘‘clauses (ii), (iii), (iv), and (vi)’’; and 
(3) by adding at the end the following: 
‘‘(vi) REDUCTION
FOR
LOANS
DISBURSED
ON
OR 
AFTER OCTOBER 1, 2007.—With respect to a loan on 
which the applicable interest rate is determined under 
section 427A(l) and for which the first disbursement 
of principal is made on or after October 1, 2007, the 
special allowance payment computed pursuant to this 
subparagraph shall be computed— 
‘‘(I) for loans held by an eligible lender not 
described in subclause (II)— 
‘‘(aa) by substituting ‘1.79 percent’ for 
‘2.34 percent’ each place the term appears in 
this subparagraph; 
‘‘(bb) by substituting ‘1.19 percent’ for 
‘1.74 percent’ in clause (ii); 
‘‘(cc) by substituting ‘1.79 percent’ for ‘2.64 
percent’ in clause (iii); and 
‘‘(dd) by substituting ‘2.09 percent’ for 
‘2.64 percent’ in clause (iv); and 
‘‘(II) for loans held by an eligible not-for-profit 
holder— 
‘‘(aa) by substituting ‘1.94 percent’ for 
‘2.34 percent’ each place the term appears in 
this subparagraph; 
‘‘(bb) by substituting ‘1.34 percent’ for 
‘1.74 percent’ in clause (ii); 
‘‘(cc) by substituting ‘1.94 percent’ for ‘2.64 
percent’ in clause (iii); and 
‘‘(dd) by substituting ‘2.24 percent’ for 
‘2.64 percent’ in clause (iv).’’. 
(b) INCREASED LOAN FEES FROM LENDERS.—Paragraph (2) of 
section 438(d) (20 U.S.C. 1087–1(d)(2)) is amended to read as fol-
lows:
H. R. 2669—17 
‘‘(2) AMOUNT OF LOAN FEES.—The amount of the loan fee 
which shall be deducted under paragraph (1), but which may 
not be collected from the borrower, shall be equal to— 
‘‘(A) except as provided in subparagraph (B), 0.50 per-
cent of the principal amount of the loan with respect to 
any loan under this part for which the first disbursement 
was made on or after October 1, 1993; and 
‘‘(B) 1.0 percent of the principal amount of the loan 
with respect to any loan under this part for which the 
first disbursement was made on or after October 1, 2007.’’. 
SEC. 306. ACCOUNT MAINTENANCE FEES. 
Section 458(b) (20 U.S.C. 1087h(b)) is amended by striking 
‘‘0.10 percent’’ and inserting ‘‘0.06 percent’’. 
TITLE IV—LOAN FORGIVENESS 
SEC. 401. LOAN FORGIVENESS FOR PUBLIC SERVICE EMPLOYEES. 
Section 455 (20 U.S.C. 1087e) is further amended by adding 
at the end the following: 
‘‘(m) REPAYMENT PLAN FOR PUBLIC SERVICE EMPLOYEES.— 
‘‘(1) IN GENERAL.—The Secretary shall cancel the balance 
of interest and principal due, in accordance with paragraph 
(2), on any eligible Federal Direct Loan not in default for 
a borrower who— 
‘‘(A) has made 120 monthly payments on the eligible 
Federal Direct Loan after October 1, 2007, pursuant to 
any one or a combination of the following— 
‘‘(i) payments under an income-based repayment 
plan under section 493C; 
‘‘(ii) payments under a standard repayment plan 
under subsection (d)(1)(A), based on a 10-year repay-
ment period; 
‘‘(iii) monthly payments under a repayment plan 
under subsection (d)(1) or (g) of not less than the 
monthly amount calculated under subsection (d)(1)(A), 
based on a 10-year repayment period; or 
‘‘(iv) payments under an income contingent repay-
ment plan under subsection (d)(1)(D); and 
‘‘(B)(i) is employed in a public service job at the time 
of such forgiveness; and 
‘‘(ii) has been employed in a public service job during 
the period in which the borrower makes each of the 120 
payments described in subparagraph (A). 
‘‘(2) LOAN
CANCELLATION
AMOUNT.—After the conclusion 
of the employment period described in paragraph (1), the Sec-
retary shall cancel the obligation to repay the balance of prin-
cipal and interest due as of the time of such cancellation, 
on the eligible Federal Direct Loans made to the borrower 
under this part. 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) ELIGIBLE
FEDERAL
DIRECT
LOAN.—The term 
‘eligible Federal Direct Loan’ means a Federal Direct Staf-
ford Loan, Federal Direct PLUS Loan, or Federal Direct 
Unsubsidized Stafford Loan, or a Federal Direct Consolida-
tion Loan.
H. R. 2669—18 
‘‘(B) PUBLIC
SERVICE
JOB.—The term ‘public service 
job’ means— 
‘‘(i) a full-time job in emergency management, 
government, military service, public safety, law 
enforcement, public health, public education (including 
early childhood education), social work in a public child 
or family service agency, public interest law services 
(including prosecution or public defense or legal 
advocacy in low-income communities at a nonprofit 
organization), public child care, public service for 
individuals with disabilities, public service for the 
elderly, public library sciences, school-based library 
sciences and other school-based services, or at an 
organization that is described in section 501(c)(3) of 
the Internal Revenue Code of 1986 and exempt from 
taxation under section 501(a) of such Code; or 
‘‘(ii) teaching as a full-time faculty member at a 
Tribal College or University as defined in section 316(b) 
and other faculty teaching in high-needs areas, as 
determined by the Secretary.’’. 
TITLE V—FEDERAL PERKINS LOANS 
SEC. 501. DISTRIBUTION OF LATE COLLECTIONS. 
Section 466(b) (20 U.S.C. 1087ff(b)) is amended by striking 
‘‘March 31, 2012’’ and inserting ‘‘October 1, 2012’’. 
TITLE VI—NEED ANALYSIS 
SEC. 601. SUPPORT FOR WORKING STUDENTS. 
(a) DEPENDENT
STUDENTS.—Subparagraph (D) of section 
475(g)(2) (20 U.S.C. 1087oo(g)(2)(D)) is amended to read as follows: 
‘‘(D) an income protection allowance of the following 
amount (or a successor amount prescribed by the Secretary 
under section 478)— 
‘‘(i) for academic year 2009–2010, $3,750; 
‘‘(ii) for academic year 2010–2011, $4,500; 
‘‘(iii) for academic year 2011–2012, $5,250; and 
‘‘(iv) for academic year 2012–2013, $6,000;’’. 
(b) INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER 
THAN
A SPOUSE.—Clause (iv) of section 476(b)(1)(A) (20 U.S.C. 
1087pp(b)(1)(A)) is amended to read as follows: 
‘‘(iv) an income protection allowance of the fol-
lowing amount (or a successor amount prescribed by 
the Secretary under section 478)— 
‘‘(I) for single or separated students, or mar-
ried students where both are enrolled pursuant 
to subsection (a)(2)— 
‘‘(aa) for academic year 2009–2010, $7,000; 
‘‘(bb) for academic year 2010–2011, $7,780; 
‘‘(cc) for academic year 2011–2012, $8,550; 
and 
‘‘(dd) for academic year 2012–2013, $9,330; 
and
H. R. 2669—19 
‘‘(II) for married students where 1 is enrolled 
pursuant to subsection (a)(2)— 
‘‘(aa) 
for 
academic 
year 
2009–2010, 
$11,220; 
‘‘(bb) 
for 
academic 
year 
2010–2011, 
$12,460; 
‘‘(cc) 
for 
academic 
year 
2011–2012, 
$13,710; and 
‘‘(dd) 
for 
academic 
year 
2012–2013, 
$14,960;’’. 
(c) INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN 
A SPOUSE.—Paragraph (4) of section 477(b) (20 U.S.C. 1087qq(b)) 
is amended to read as follows: 
‘‘(4) INCOME PROTECTION ALLOWANCE.—The income protec-
tion allowance is determined by the tables described in subpara-
graphs (A) through (D) (or a successor table prescribed by 
the Secretary under section 478). 
‘‘(A) ACADEMIC
YEAR
2009–2010.—For academic year 
2009–2010, the income protection allowance is determined 
by the following table: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
For each 
addi-
tional 
subtract: 
$17,720 
$14,690 
22,060 
19,050 
$16,020 
27,250 
24,220 
21,210 
$18,170 
32,150 
29,120 
26,100 
23,070 
$20,060 
37,600 
34,570 
31,570 
28,520 
25,520 
$3,020 
For each 
additional 
add: 
4,240 
4,240 
4,240 
4,240 
4,240 
‘‘(B) ACADEMIC
YEAR
2010–2011.—For academic year 
2010–2011, the income protection allowance is determined 
by the following table: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
For each 
addi-
tional 
subtract: 
$19,690 
$16,330 
24,510 
21,160 
$17,800 
30,280 
26,910 
23,560 
$20,190 
35,730 
32,350 
29,000 
25,640 
$22,290 
41,780 
38,410 
35,080 
31,690 
28,350 
$3,350 
For each 
additional 
add: 
4,710 
4,710 
4,710 
4,710 
4,710
H. R. 2669—20 
‘‘(C) ACADEMIC
YEAR
2011–2012.—For academic year 
2011–2012, the income protection allowance is determined 
by the following table: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
For each 
addi-
tional 
subtract: 
$21,660 
$17,960 
26,960 
23,280 
$19,580 
33,300 
29,600 
25,920 
$22,210 
39,300 
35,590 
31,900 
28,200 
$24,520 
45,950 
42,250 
38,580 
34,860 
31,190 
$3,690 
For each 
additional 
add: 
5,180 
5,180 
5,180 
5,180 
5,180 
‘‘(D) ACADEMIC
YEAR
2012–2013.—For academic year 
2012–2013, the income protection allowance is determined 
by the following table: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
For each 
addi-
tional 
subtract: 
$23,630 
$19,590 
29,420 
25,400 
$21,360 
36,330 
32,300 
28,280 
$24,230 
42,870 
38,820 
34,800 
30,770 
$26,750 
50,130 
46,100 
42,090 
38,030 
34,020 
$4,020 
For each 
additional 
add: 
5,660 
5,660 
5,660 
5,660 
5,660 
’’. 
(d) UPDATED TABLES AND AMOUNTS.—Section 478(b) (20 U.S.C. 
1087rr(b)) is amended— 
(1) by striking paragraph (1) and inserting the following: 
‘‘(1) REVISED TABLES.— 
‘‘(A) IN GENERAL.—For each academic year after aca-
demic year 2008–2009, the Secretary shall publish in the 
Federal Register a revised table of income protection allow-
ances for the purpose of sections 475(c)(4) and 477(b)(4), 
subject to subparagraphs (B) and (C). 
‘‘(B) TABLE FOR INDEPENDENT STUDENTS.— 
‘‘(i) ACADEMIC
YEARS
2009–2010
THROUGH
2012– 
2013.—For each of the academic years 2009–2010 
through 2012–2013, the Secretary shall not develop 
a revised table of income protection allowances under 
section 477(b)(4) and the table specified for such aca-
demic year under subparagraphs (A) through (D) of 
such section shall apply. 
‘‘(ii) OTHER ACADEMIC YEARS.—For each academic 
year after academic year 2012–2013, the Secretary