‘‘(A) 
ESTABLISHMENT.—The 
Secretary 
shall establish a system for reporting to pro-
spective students and families on the net tuition 
price of institutions of higher education. Using 
the most recent data available, the Secretary 
shall make available the amount of aid typically 
granted for students based on family income 
and college attended. Such information shall be 
made available in the form of a web site price 
calculator that permits students to be able to 
enter an institution of higher education and 
their family income and be presented the sticker 
price, net tuition price, and net access price for 
students in their income bracket in order to de-
termine the approximate cost of attending such 
a school. The calculator shall include a clear 
disclaimer that financial aid decisions are made 
on a case-by-case basis and that the included 
calculations are based on previous years’ data 
and can therefore serve only as general guide-
lines for the financial aid that a student may 
expect to receive. 
‘‘(B) INFORMATION DISTRIBUTION BY IN-
STITUTIONS.—Each institution of higher edu-
cation shall make available its sticker price,
total price of attendance, net tuition price, and 
net access price and list examples of what fami-
lies in each of the quartile income brackets 
might be expected to pay in the net tuition 
price for the most recent academic year. This 
information shall be provided in written form 
and distributed to all students and applicants 
and made widely available to the public. 
‘‘(e) NET TUITION PRICE INDEX.—
‘‘(1) IN GENERAL.—The Secretary shall, on the 
basis of the data submitted under subsection (a), 
calculate a net tuition price index for each institu-
tion of higher education submitting such data and 
shall make the index available in accordance with 
subsection (b) as soon as operationally possible on 
the Department’s college opportunity on line 
(COOL) website. 
‘‘(2) CALCULATION OF INDEX.—The net tuition 
price index shall be equal to the percentage increase 
in the net tuition price charged for a first-time, full-
time, full-year undergraduate student between a pre-
ceding academic year and the most recent academic 
year for which satisfactory data are available. 
‘‘(f) DEFINITIONS.—For the purposes of this section:
‘‘(1) NET ACCESS PRICE.—The term ‘net access 
price’ means the average total price of attendance 
for full-time undergraduate students, minus the av-
erage grants, loans, and work-study provided to such 
students, for any academic year. 
‘‘(2) NET TUITION PRICE.—The term ‘net tui-
tion price’ means the average tuition and fees 
charged to full-time undergraduate students, minus 
the average grants provided to such students, for 
any academic year. 
‘‘(3) STICKER PRICE.—The term ‘sticker price’ 
means the average tuition and fees charged to full-
time undergraduate students by an institution of 
higher education for any academic year. 
‘‘(4) TOTAL
PRICE
OF
ATTENDANCE.—The 
term ‘total price of attendance’ means the average 
tuition and fees charged to full-time undergraduate 
students, as well as the average of the other ex-
penses of such students related to obtaining a higher 
education, including housing (room and board if the 
student lives on campus, or rent or related housing 
costs if the student does not live on campus), books, 
transportation, for any academic year. 
‘‘(5) TUITION.—The term ‘tuition’ means the 
average price of or payment for actual instruction of
full-time undergraduate students at an institution of 
higher education, for any academic year.’’. 
(c) PELL PLUS.—Subpart 1 of part A of title IV is 
amended by inserting after section 401 (20 U.S.C. 1070a) 
the following new section: 
‘‘SEC. 401A. INCENTIVES AND REWARDS: PELL PLUS. 
‘‘(a) REWARDS FOR LOW TUITION.—For any institu-
tion of higher education that, for academic year 2005–
2006 or any succeeding academic year, such institution’s 
annual net tuition price increase (expressed as a percent-
age) for the most recent academic year for which satisfac-
tory data is available is equal to or less than the percent-
age change in the higher education price index for such 
academic year, the Secretary shall, notwithstanding any 
other provision of the law, provide such institution an 
amount sufficient to provide a 25 percent increase under 
subpart 1 of part A of title IV to each Pell Grant recipient 
attending such institution for the next award year begin-
ning after the date of such determination. Each such insti-
tution shall distribute any amounts received under this 
subsection among such Pell Grant recipients by increasing 
the amount of their Pell Grant awards by 25 percent. 
‘‘(b) REWARDS FOR GUARANTEED TUITION.—
‘‘(1) BONUS.—For each institution of higher 
education that the Secretary of Education deter-