mines complies with the requirements of paragraph 
(2) or paragraph (3) of this subsection, the Sec-
retary shall, notwithstanding any other provision of 
the law, provide such institution an amount suffi-
cient to provide a 10 percent increase under subpart 
1 of part A of title IV to each Pell Grant recipient 
attending such institution for the next award year 
beginning after the date of such determination. Each 
such institution shall distribute any amounts re-
ceived under this subsection among such Pell Grant 
recipients by increasing the amount of their Pell 
Grant awards by 10 percent. 
‘‘(2) 4-YEAR INSTITUTIONS.—An institution of 
higher education that provides a program of instruc-
tion for which it awards a bachelor’s degree complies 
with the requirements of this paragraph if such in-
stitution guarantees that for any academic year be-
ginning on or after July 1, 2005, and for each of the 
5 succeeding continuous academic years, the net tui-
tion price charged to an undergraduate student will 
not exceed—
‘‘(A) the amount that the student was 
charged for an academic year at the time he or 
she first enrolled in the institution of higher 
education, plus
‘‘(B) the product of the percentage in-
crease in the higher education price index for 
the prior academic year, or the most recent 
prior academic year for which data is available, 
multiplied by the amount determined under 
subparagraph (A). 
‘‘(3) LESS
THAN
4-YEAR
INSTITUTIONS.—An 
institution of higher education that does not provide 
a program of instruction for which it awards a bach-
elor’s degree complies with the requirements of this 
paragraph if such institution guarantees that for 
any academic year (or the equivalent) beginning on 
or after July 1, 2005, and for each of the 1.5 suc-
ceeding continuous academic years, the net tuition 
price charged to an undergraduate student will not 
exceed—
‘‘(A) the amount that the student was 
charged for an academic year at the time he or 
she first enrolled in the institution of higher 
education, plus 
‘‘(B) the product of the percentage in-
crease in the higher education price index for 
the prior academic year, or the most recent 
prior academic year for which data is available,
multiplied by the amount determined under 
subparagraph (A). 
‘‘(c) MAINTAINING AFFORDABLE TUITION.—For any 
institution of higher education whose increase in the an-
nual net tuition price (expressed as a percentage), for the 
most recent academic year for which satisfactory data is 
available, is greater than the percentage increase in the 
higher education price index for such academic year, the 
Secretary shall require such institution to submit to the 
Secretary the following information, within 6 months of 
such determination: 
‘‘(1) a detailed report on the exact causes for 
the net tuition price increase that outlines revenues 
and expenditures; and 
‘‘(2) cost containment strategies to lower net 
tuition prices. 
‘‘(d) DEFINITIONS.—
‘‘(1) NET TUITION PRICE.—The term ‘net tui-
tion price’ has the same meaning as provided in sec-
tion 133(f). 
‘‘(2) HIGHER EDUCATION PRICE INDEX.—The 
term ‘higher education price index’ means a statis-
tical measure of change over time in the prices of a 
fixed market basket of goods and services purchased 
by colleges and universities through current fund
educational and general expenditures (excluding ex-
penditures for research), as developed by the Bureau 
of Labor Statistics pursuant to section 131(c)(4).’’. 
(d) ARTICULATION AGREEMENT DEMONSTRATION 
PROGRAM.—Part G of title IV is amended by inserting 
after section 486 (20 U.S.C. 1093) the following new sec-
tion: 
‘‘SEC. 486A. ARTICULATION AGREEMENT DEMONSTRATION 
PROGRAM. 
‘‘(a) PURPOSE; DEFINITION.—
‘‘(1) PURPOSE.—It is the purpose of this sec-
tion to allow demonstration programs that are mon-
itored by the Department of Education to encourage 
institutions of higher education to enter into articu-
lation agreements or consortia groups, as a means to 
lower tuition prices to students. 
‘‘(2) DEFINITION.—For the purposes of this 
section, the term ‘articulation agreement’ means an 
agreement between institutions of higher education 
that specifies the acceptability of courses in transfer 
toward meeting specific degree requirements. 
‘‘(b) DEMONSTRATION PROGRAMS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized 
to select institutions of higher education, systems of 
such institutions, or consortia of such institutions