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the Truth in Lending Act (15 U.S.C. 
1606); 
‘‘(IX) an example of the total 
cost of the educational loan over the 
life of the loan which shall be cal-
culated— 
‘‘(aa) 
using 
a 
principal 
amount and the maximum rate of 
interest actually offered by the 
lender; and 
‘‘(bb) both with and without 
capitalization of interest, if that 
is an option for postponing inter-
est payments; 
‘‘(X) the consequences for the 
borrower of defaulting on a loan, in-
cluding any limitations on the dis-
charge of an educational loan in bank-
ruptcy; 
‘‘(XI) contact information for the 
lender; and 
‘‘(XII) any philanthropic con-
tributions made by the lender to the 
covered institution, including the pur-
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pose of the contribution and any con-
ditions related to its use; and 
‘‘(vi) provides, in addition, with re-
spect to private educational loans, the fol-
lowing information with respect to loans 
made by each lender recommended by the 
covered institution: 
‘‘(I) the method of determining 
the interest rate of the loan; 
‘‘(II) potential finance charges, 
late fees, penalties, and adjustments 
to principal, based on defaults or late 
payments of the borrower; and 
‘‘(III) such other information as 
the Secretary may require; and 
‘‘(C)(i) submit the report and model disclo-
sure form to the authorizing committees; and 
‘‘(ii) make the report and model disclosure 
form available to covered institutions, lenders, 
and the public. 
‘‘(2) MODEL FORM UPDATE.—Not later than 1 
year after the submission of the report and model 
disclosure form described in paragraph (1)(B), the 
Secretary shall—
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‘‘(A) assess the adequacy of the model dis-
closure form; 
‘‘(B) after consulting with students, rep-
resentatives of covered institutions (including fi-
nancial aid administrators, registrars, business 
officers, and student affairs officials), lenders, 
loan servicers, guaranty agencies, and the 
Board of Governors of the Federal Reserve Sys-
tem— 
‘‘(i) prepare a list of any improve-
ments to the model disclosure form that 
have been identified as beneficial to bor-
rowers; and 
‘‘(ii) update the model disclosure form 
after taking such improvements into con-
sideration; and 
‘‘(C)(i) submit the list of improvements 
and updated model disclosure form to the au-
thorizing committees; and 
‘‘(ii) make the updated model disclosure 
form available to covered institutions, lenders, 
and the public. 
‘‘(3) USE OF FORM.—The Secretary shall take 
such steps as necessary to make the model disclo-
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sure form, and the updated model disclosure form, 
available to covered institutions and to encourage— 
‘‘(A) lenders subject to subsection (b) to 
use the model disclosure form or updated model 
disclosure form (if available) in providing the 
information required under subsection (b); and 
‘‘(B) covered institutions to use such for-
mat in preparing the information reported 
under subsection (c). 
‘‘(4) PROCEDURES.—Sections 482(c) and 492 
of this Act shall not apply to the model disclosure 
form prescribed under paragraph (1)(B), but shall 
apply to the updating of such form under paragraph 
(2). 
‘‘(b) LENDER DUTIES.—Each lender that has a pre-
ferred lender arrangement with a covered institution shall, 
by March 1 of each year, or such other date determined 
by the Secretary, provide to the covered institution and 
to the Secretary the information included on the model 
disclosure form or an updated model disclosure form (if 
available) for each type of educational loan (including op-
portunity pools as defined in section 155(f)) to be offered 
by the lender to students attending the covered institution, 
or the parents of such students, for the forthcoming aca-
demic year.
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‘‘(c) COVERED INSTITUTION REPORTS.—Each cov-
ered institution shall— 
‘‘(1) prepare and submit to the Secretary an 
annual report, by a date determined by the Sec-
retary, that includes, for each lender that has a pre-
ferred lender arrangement with the covered institu-
tion and that has submitted to the institution the in-
formation required under subsection (b)— 
‘‘(A) the information included on the 
model disclosure form or updated model disclo-
sure form (if available) for each type of edu-
cational loan provided by the lender to students 
attending the covered institution, or the parents 
of such students; and 
‘‘(B) a detailed explanation of why the cov-
ered institution believes the terms and condi-
tions of each type of educational loan provided 
pursuant to the agreement are beneficial for 
students attending the covered institution, or 
the parents of such students; and 
‘‘(2) ensure that the report required under 
paragraph (1) is made available to the public and 
provided to students attending or planning to attend 
the covered institution, and the parents of such stu-
dents, in time for the student or parent to take such
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information into account before applying for or se-
lecting an educational loan. 
‘‘(d) DISCLOSURES BY COVERED INSTITUTIONS.—A 
covered institution shall disclose, on its website and in the 
informational materials described in subsection (e)— 
‘‘(1) a statement that— 
‘‘(A) indicates that students are not lim-
ited to or required to use the lenders the insti-
tution recommends; and 
‘‘(B) the institution is required to process 
the documents required to obtain a Federal 
educational loan from any eligible lender the 
student selects; 
‘‘(2) at a minimum, all of the information pro-
vided by the model disclosure form prescribed under 
subsection (a)(1)(B), or updated model disclosure 
form (if available), with respect to any lender rec-
ommended by the institution for Federal educational 
loans and, as applicable, private educational loans 
(including opportunity pools as defined in section 
155(f)); 
‘‘(3) the maximum amount of Federal grant 
and loan aid available to students in an easy-to-un-
derstand format; and
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‘‘(4) the institution’s cost of attendance (as de-
termined under section 472). 
‘‘(e) INFORMATIONAL MATERIALS.—The informa-
tional materials described in this subsection are publica-
tions, mailings, or electronic messages or media distrib-
uted to prospective or current students and parents of stu-
dents that describe or discuss the financial aid opportuni-
ties available to students at an institution of higher edu-
cation. 
‘‘SEC. 154. PRIVATE EDUCATIONAL LOAN DISCLOSURE RE-
QUIREMENTS FOR COVERED INSTITUTIONS. 
‘‘A covered institution that provides information to 
any student, or the parent of such student, regarding a 
private educational loan from a lender shall, prior to or 
concurrent with such information— 
‘‘(1) inform the student or parent of— 
‘‘(A) the student or parent’s eligibility for 
assistance and loans under title IV; and 
‘‘(B) the terms and conditions of such pri-
vate educational loan that may be less favorable 
than the terms and conditions of educational 
loans for which the student or parent is eligible, 
including interest rates, repayment options, and 
loan forgiveness; and
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‘‘(2) ensure that information regarding such 
private educational loan is presented in such a man-
ner as to be distinct from information regarding 
loans that are made, insured, or guaranteed under 
title IV. 
‘‘SEC. 155. INTEGRITY PROVISIONS. 
‘‘(a) INSTITUTION CODE OF CONDUCT REQUIRED.— 
‘‘(1) CODE OF CONDUCT.—Each institution of 
higher education that participates in the Federal 
student loan programs under title IV or has stu-
dents that obtain private educational loans shall— 
‘‘(A) develop a code of conduct in accord-
ance with paragraph (2) with which its officers, 
employees, and agents shall comply with respect 
to educational loans; 
‘‘(B) publish the code of conduct promi-
nently on its website; and 
‘‘(C) administer and enforce such code in 
accordance with the requirements of this sub-
section. 
‘‘(2) CONTENTS OF CODE.—The code required 
by this section shall— 
‘‘(A) prohibit a conflict of interest with the 
responsibilities of such officer, employee, or 
agent with respect to educational loans; and
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‘‘(B) at a minimum, include provisions in 
compliance with the provisions of the following 
subsections of this section. 
‘‘(3) TRAINING AND COMPLIANCE.—An institu-
tion of higher education shall administer and enforce 
a code of conduct required by this section by, at a 
minimum, requiring all of its officers, employees, 
and agents with responsibilities with respect to edu-
cational loans to obtain training annually in compli-
ance with the code. 
‘‘(b) GIFT BAN.— 
‘‘(1) PROHIBITION.—No officer, employee, or 
agent of a covered institution who is employed in the 
financial aid office of the institution, or who other-
wise has responsibilities with respect to educational 
loans, shall solicit or accept any gift from a lender, 
guarantor, or servicer of educational loans. 
‘‘(2) INSPECTOR GENERAL REPORT.—The In-
spector General of the Department of Education 
shall investigate any reported violation of this sub-
section and shall annually submit a report to the au-
thorizing committees identifying all substantiated 
violations of the gift ban under paragraph (1), in-
cluding the lenders and covered institutions involved 
in each such violation, for the preceding year.
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‘‘(3) DEFINITION OF GIFT.— 
‘‘(A) IN GENERAL.—In this subsection, the 
term ‘gift’ means any gratuity, favor, discount, 
entertainment, hospitality, loan, or other item 
having a monetary value of more than a de 
minimus amount. The term includes a gift of 
services, transportation, lodging, or meals, 
whether provided in kind, by purchase of a tick-
et, payment in advance, or reimbursement after 
the expense has been incurred. 
‘‘(B) EXCEPTIONS.—The term ‘gift’ shall 
not include any of the following: 
‘‘(i) Standard material, activities, or 
programs on issues related to a loan, de-
fault aversion, default prevention, or finan-
cial literacy, such as a brochure, a work-
shop, or training. 
‘‘(ii) Food, refreshments, training, or 
informational material furnished to an offi-
cer, employee, or agent of an institution as 
an integral part of a training session that 
is designed to improve the service of a 
lender, guarantor, or servicer of edu-
cational loans to the covered institution, if 
such training contributes to the profes-
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sional development of the officer, employee, 
or agent of the institution. 
‘‘(iii) Favorable terms, conditions, and 
borrower benefits on an educational loan 
provided to a student employed by the cov-
ered institution if such terms, conditions, 
or benefits are comparable to those pro-
vided to all students of the institution. 
‘‘(iv) Entrance and exit counseling 
services provided to borrowers to meet a 
covered institution’s responsibilities for en-
trance and exit counseling as required by 
section 485(b) provided that— 
‘‘(I) a covered institution’s staff 
are in control of the counseling 
(whether in person or via electronic 
capabilities); and 
‘‘(II) such counseling does not 
promote the products or services of 
any lender. 
‘‘(v) Philanthropic contributions to a 
covered institution from a lender, guar-
antor, or servicer of educational loans that 
are unrelated to educational loans, pro-
vided, as applicable, that such contribu-
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tions are disclosed pursuant to section 
153(a)(1) and section 153(a)(2). 
‘‘(vi) State education grants, scholar-
ships, or financial aid funds administered 
by or on behalf of a State. 
‘‘(C) RULE FOR GIFTS TO FAMILY MEM-
BERS.—For purposes of this section, a gift to 
a family member of an officer, employee, or 
agent of a covered institution, or a gift to any 
other individual based on that individual’s rela-
tionship with the officer, employee, or agent, 
shall be considered a gift to the officer, em-
ployee, or agent if— 
‘‘(i) the gift is given with the knowl-
edge and acquiescence of the officer, em-
ployee, or agent; and 
‘‘(ii) the officer, employee, or agent 
has reason to believe the gift was given be-
cause of the official position of the officer, 
employee, or agent. 
‘‘(c) CONTRACTING ARRANGEMENTS PROHIBITED.— 
‘‘(1) PROHIBITION.—An officer, employee, or 
agent who is employed in the financial aid office of 
a covered institution, or who otherwise has respon-
sibilities with respect to educational loans, shall not
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‘‘(2) DEFINITION.—For purposes of this sub-
section, a revenue sharing arrangement is an ar-
rangement between a covered institution and a lend-
er under which— 
‘‘(A) a lender provides or issues edu-
cational loans to students attending the institu-
tion or to parents of such students; and 
‘‘(B)(i) the institution recommends the 
lender or the loan products of the lender; and 
‘‘(ii) in exchange, the lender pays a fee or 
provides other material benefits, including rev-
enue or profit sharing, to the institution or offi-
cers, employees, or agents of the institution. 
‘‘(e) BAN ON STAFFING ASSISTANCE.— 
‘‘(1) PROHIBITION.—A covered institution shall 
not request or accept from any lender any assistance 
with call center staffing or financial aid office staff-
ing. 
‘‘(2) CERTAIN ASSISTANCE PERMITTED.—Noth-
ing in paragraph (1) shall be construed to prohibit 
a covered institution from requesting or accepting 
assistance from a lender related to— 
‘‘(A) professional development training for 
financial aid administrators;
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‘‘(B) providing educational counseling ma-
terials, financial literacy materials, or debt 
management materials to borrowers, provided 
that such materials disclose to borrowers the 
identification of any lender that assisted in pre-
paring or providing such materials; or 
‘‘(C) staffing services on a short-term, 
non-recurring basis to assist the institution with 
financial aid-related functions during emer-
gencies, including State-declared or federally 
declared natural disasters, federally declared 
national disasters, and other localized disasters 
and emergencies identified by the Secretary. 
‘‘(f) PROHIBITION ON OFFERS OF FUNDS FOR PRI-
VATE LOANS.— 
‘‘(1) PROHIBITION.—A covered institution shall 
not request or accept from any lender any offer of 
funds, including any opportunity pool, to be used for 
private educational loans to students in exchange for 
the covered institution providing concessions or 
promises to the lender with respect to such institu-
tion providing the lender with a specified number of 
loans, a specified loan volume, or a preferred lender 
arrangement for any loan made, insured, or guaran-
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teed under title IV, and a lender shall not make any 
such offer. 
‘‘(2) DEFINITION.—In this subsection, the term 
‘opportunity pool’ means an educational loan made 
by a private lender to a student attending the cov-
ered institution or the parent of such a student that 
is in any manner guaranteed by a covered institu-
tion, or that involves a payment, directly or indi-
rectly, by such an institution of points, premiums, 
payments, additional interest, or other financial sup-
port to such lender for the purpose of such lender 
extending credit to either the students or the par-
ents of students of the institution. 
‘‘(g) BAN ON PARTICIPATION ON ADVISORY COUN-
CILS.—An officer, employee, or agent who is employed in 
the financial aid office of a covered institution, or who oth-
erwise has responsibilities with respect to educational 
loans, shall not serve on or otherwise participate with advi-
sory councils of lenders or affiliates of lenders. Nothing 
in this subsection shall prohibit lenders from seeking ad-
vice from covered institutions or groups of covered institu-
tions (including through telephonic or electronic means, 
or a meeting) in order to improve products and services 
for borrowers, provided there are no gifts or compensation 
(including for transportation, lodging, or related expenses)
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provided by lenders in connection with seeking this advice 
from such institutions. Nothing in this subsection shall 
prohibit an officer, employee, or agent of a covered institu-
tion from serving on the board of directors of a lender 
if required by State law. 
‘‘SEC. 156. COMPLIANCE AND ENFORCEMENT. 
‘‘(a) CONDITION OF ANY FEDERAL ASSISTANCE.— 
Notwithstanding any other provision of law, a covered in-
stitution or lender shall comply with this part as a condi-
tion of receiving Federal funds or assistance provided after 
the date of enactment of the College Opportunity and Af-
fordability Act of 2008. 
‘‘(b) PENALTIES.—Notwithstanding any other provi-
sion of law, if the Secretary determines, after providing 
notice and an opportunity for a hearing for a covered insti-
tution or lender, that the covered institution or lender has 
violated subsection (a)— 
‘‘(1) in the case of a covered institution, or a 
lender that does not participate in a loan program 
under title IV, the Secretary may impose a civil pen-
alty in an amount of not more than $27,500; and 
‘‘(2) in the case of a lender that does partici-
pate in a program under title IV, the Secretary may 
impose a civil penalty in an amount of not more
102 
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than $27,500, or limit, terminate, or suspend the 
lender’s participation in such program. 
‘‘(c) CONSIDERATIONS.—In taking any action against 
a covered institution or lender under subsection (b), the 
Secretary shall take into consideration the nature and se-
verity of the violation of subsection (a). 
‘‘SEC. 157. STUDENT LOAN COUNSELING. 
‘‘(a) BORROWER CONTACT.— 
‘‘(1) FFEL LOANS.—Each holder of a loan 
under part B of title IV shall contact the borrower 
each year after five years has passed from the date 
that a borrower first selected either a graduated, ex-
tended, income sensitive, or income contingent re-
payment plan to ascertain if the borrower is able to 
select a repayment plan with a shorter repayment 
period that would reduce the total interest paid on 
the borrower’s loan or loans under this part. 
‘‘(2) DIRECT LOANS.—The Secretary shall con-
tact the borrower of each loan under part D or E 
of title IV each year after five years has passed from 
the date that a borrower first selected either an ex-
tended, graduated, income contingent, or alternative 
repayment plan to ascertain if the borrower is able 
to select a repayment plan for a shorter repayment
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period that would reduce the total interest paid on 
the borrower’s loan under this part. 
‘‘(b) REQUIRED DISCLOSURE BEFORE DISBURSE-
MENT.— 
‘‘(1) DISCLOSURES
BEFORE
REPAYMENT.— 
Each lender of a loan under part B of title IV, and 
the Secretary with respect to each loan under part 
D or E of such title, shall provide to the borrower 
before repayment begins an explanation of principal 
to be borrowed, current balance, interest already 
paid, and interest due over the life of the loan, op-
tions by which borrowers may avoid or be removed 
from default, relevant fees associated with these op-
tions, and repayment options available to the bor-
rower entering repayment, including income contin-
gent repayment and income-based repayment. 
‘‘(2) DISCLOSURES
DURING
REPAYMENT.— 
Each lender of a loan under part B of title IV, and 
the Secretary with respect to each loan under part 
D or E of such title, shall provide to the borrower 
during repayment an explanation of principal bor-
rowed, current balance, interest already paid and in-
terest due over the life of the loan, options by which 
borrowers may avoid or be removed from default, 
relevant fees associated with these options, and re-
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dent borrower receives the counseling materials, and 
participates in and completes the initial counseling. 
‘‘(d) DEPARTMENT
OF EDUCATION INFORMATION 
DISCLOSURE AND TECHNICAL ASSISTANCE.— 
‘‘(1) OBLIGATION.—The Secretary shall display 
on the Department of Education website and provide 
to colleges and universities the following information 
to be used for counseling and consumer information 
for prospective borrowers: 
‘‘(A) Regional data on starting salaries in 
all major fields. 
‘‘(B) The increase in debt that results 
from forbearance on all loans and from capital-
ization of interest on unsubsidized loans. 
‘‘(C) The various repayment options avail-
able in the Federal student loan programs, in-
cluding the availability of the income contingent 
repayment (ICR) program and the income- 
based repayment programs (IBR). 
‘‘(D) The Federal Government’s powers to 
collect student loans, even when student bor-
rowers are in bankruptcy. 
‘‘(2) PUBLICITY.—The Secretary shall make 
the location of the information under paragraph (1) 
widely known among the public, institutions, and
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lenders, and promote the use of such information by 
prospective students, enrolled students, and bor-
rowers after entering repayment.’’. 
SEC. 116. FEASIBILITY STUDY FOR NATIONAL ELECTRONIC 
STUDENT LOAN MARKETPLACE. 
(a) STUDY REQUIRED.—The Secretary of Education 
shall conduct a study of the feasibility of developing a Na-
tional Electronic Student Loan Marketplace that would 
provide for one or more of the following: 
(1) A registry of real-time information on Fed-
eral student loans (including loans under parts B 
and D of title IV of the Higher Education Act of 
1965) and private educational loans (as defined in 
section 151 such Act of 1965 (as amended by this 
Act)) for both undergraduate and graduate students, 
and parents of students, for use by prospective bor-
rowers or any person desiring information regarding 
available interest rates, fees, and other terms from 
lenders. 
(2) Means by which lenders that participate in 
such marketplace would be bound to honor adver-
tised rates or benefits. 
(3) A mechanism whereby borrowers and stu-
dent financial aid officials could publicly post or oth-
erwise make available for users accessing the system
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their comments, opinions, or ratings concerning their 
experience as to the quality of lenders’ loan products 
and loan servicing and other measurements or indi-
cators of customer satisfaction. 
(4) A mechanism whereby prospective bor-
rowers could be matched with lenders that offer 
highly competitive products and loan servicing qual-
ity, including any procedures and safeguards nec-
essary to minimize potentially adverse effects of mul-
tiple inquiries into participating borrowers’ credit 
histories recorded by credit reporting agencies. 
(5) Options concerning the establishment and 
ongoing maintenance of such a system, including 
whether such a system should be operated by one or 
more nonprofit or for-profit entities, how these enti-
ties should structure or organize such a system in 
order to provide the highest assurance of independ-
ence from, and the absence of any conflicting inter-
est with, lenders participating in such a system, and 
methods to finance such a system at no or minimal 
cost to consumers and the Government. 
(6) Other features that the Secretary deter-
mines could help prospective borrowers make in-
formed decisions in selecting lenders from whom to 
obtain Federal and private educational loans.
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(b) CONSULTATION.—In conducting the study re-
quired by this section, the Secretary of Education shall 
consult with— 
(1) the Federal Trade Commission; 
(2) representatives of student loan borrowers; 
(3) representatives from institutions of higher 
education, including financial aid administrators, 
registrars, business officers, and student affairs offi-
cials; 
(4) Federal and private education loan lenders, 
loan servicers, and guaranty agencies; and 
(5) any other appropriate agency that is a 
member of the Financial Literacy and Education 
Commission established under the Financial Lit-
eracy and Education Improvement Act (20 U.S.C. 
9701 et seq.). 
(c) REPORT.—Not later than 6 months after comple-
tion of the model interest rate report format required 
under section 153(a)(1) of the Higher Education Act of 
1965 (as amended by this Act), the Secretary of Edu-
cation shall submit a report to the authorizing committees 
(as defined in section 103 of such Act) concerning the 
findings of the feasibility study together with an assess-
ment of the advantages and disadvantages for consumers,
110 
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institutions of higher education, lenders, and the Govern-
ment of establishing such a system. 
TITLE II—TITLE II REVISION 
SEC. 201. REVISION OF TITLE II. 
Title II (20 U.S.C. 1021 et seq.) is amended to read 
as follows: 
‘‘TITLE II—TEACHER QUALITY 
ENHANCEMENT 
‘‘SEC. 200. DEFINITIONS. 
‘‘For purposes of this title: 
‘‘(1) ARTS AND SCIENCES.—The term ‘arts and 
sciences’ means— 
‘‘(A) when referring to an organizational 
unit of an institution of higher education, any 
academic unit that offers 1 or more academic 
majors in disciplines or content areas cor-
responding to the academic subject matter 
areas in which teachers provide instruction; and 
‘‘(B) when referring to a specific academic 
subject area, the disciplines or content areas in 
which academic majors are offered by the arts 
and sciences organizational unit. 
‘‘(2) CHILDREN
FROM
LOW-INCOME
FAMI-
LIES.—The term ‘children from low-income families’ 
means children as described in section 1124(c)(1)(A)
111 
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of the Elementary and Secondary Education Act of 
1965. 
‘‘(3) CORE
ACADEMIC
SUBJECTS.—The term 
‘core academic subjects’ has the meaning given the 
term in section 9101 of the Elementary and Sec-
ondary Education Act of 1965. 
‘‘(4) EARLY
CHILDHOOD
EDUCATION
PRO-
GRAM.—The term ‘early childhood education pro-
gram’ means— 
‘‘(A) a Head Start program or an Early 
Head Start program carried out under the 
Head Start Act (42 U.S.C. 9831 et seq.), and 
includes Migrant and Seasonal Head Start and 
American Indian/Alaska Native Head Start; 
‘‘(B) a State licensed or regulated child 
care program or school; or 
‘‘(C) a State prekindergarten program (in-
cluding a program authorized under section 619 
or part C of the Individuals with Disabilities 
Education Act) that serves children from birth 
through kindergarten and that addresses the 
children’s cognitive (including language, early 
literacy, and pre-numeracy), social, emotional, 
and physical development.
112 
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‘‘(5) 
EARLY
CHILDHOOD
EDUCATOR.—The 
term ‘early childhood educator’ means an individual 
with primary responsibility for the education of chil-
dren in an early childhood education program. 
‘‘(6) EDUCATIONAL
SERVICE
AGENCY.—The 
term ‘educational service agency’ has the meaning 
given the term in section 9101 of the Elementary 
and Secondary Education Act of 1965. 
‘‘(7) ESSENTIAL COMPONENTS OF READING IN-
STRUCTION.—The term ‘essential components of 
reading instruction’ has the meaning given such 
term in section 1208 of the Elementary and Sec-
ondary Education Act of 1965. 
‘‘(8) EXEMPLARY TEACHER.—The term ‘exem-
plary teacher’ has the meaning given such term in 
section 9101 of the Elementary and Secondary Edu-
cation Act of 1965. 
‘‘(9) HIGH-NEED
EARLY
CHILDHOOD
EDU-
CATION PROGRAM.—The term ‘high-need early child-
hood education program’ means an early childhood 
education program serving children from low-income 
families that is located within the geographic area 
served by a high-need local educational agency.
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‘‘(10) HIGH-NEED LOCAL EDUCATIONAL AGEN-
CY.—The term ‘high-need local educational agency’ 
means a local educational agency— 
‘‘(A)(i) for which not less than 20 percent 
of the children served by the agency are chil-
dren from low-income families; 
‘‘(ii) that serves not fewer than 10,000 
children from low-income families; or 
‘‘(iii) with a total of less than 600 students 
in average daily attendance at the schools that 
are served by the agency, and all of the schools 
that are served by the agency are designated 
with a school locale code of Rural: Fringe, 
Rural: Distant, or Rural: Remote, as deter-
mined by the Secretary; and 
‘‘(B)(i) for which there is a high percent-
age of teachers not teaching in the academic 
subject areas or grade levels in which the teach-
ers were trained to teach; or 
‘‘(ii) for which there is a high teacher 
turnover rate or a high percentage of teachers 
with emergency, provisional, or temporary cer-
tification or licensure. 
‘‘(11) HIGH-NEED
SCHOOL.—Notwithstanding 
section 103, the term ‘high-need school’ means a
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public elementary school or public secondary school 
that— 
‘‘(A) is among the highest 25 percent of 
schools served by the local educational agency 
that serves the school, in terms of the percent-
age of students from families with incomes 
below the poverty line; or 
‘‘(B) is designated with a school locale 
code of Rural: Fringe, Rural: Distant, or Rural: 
Remote, as determined by the Secretary. 
‘‘(12) HIGHLY COMPETENT.—The term ‘highly 
competent’, when used with respect to an early 
childhood educator, means an educator— 
‘‘(A) with specialized education and train-
ing in development and education of young chil-
dren from birth until entry into kindergarten; 
‘‘(B) with— 
‘‘(i) a baccalaureate degree in an aca-
demic major in the arts and sciences; or 
‘‘(ii) an associate’s degree in a related 
educational area; and 
‘‘(C) who has demonstrated a high level of 
knowledge and use of content and pedagogy in 
the relevant areas associated with quality early 
childhood education.
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‘‘(13) HIGHLY QUALIFIED.—The term ‘highly 
qualified’ has the meaning given such term in sec-
tion 9101 of the Elementary and Secondary Edu-
cation Act of 1965 and, with respect to special edu-
cation teachers, in section 602 of the Individuals 
with Disabilities Education Act. 
‘‘(14) LITERACY
COACH.—The term ‘literacy 
coach’ means an individual— 
‘‘(A) who— 
‘‘(i) has teaching experience and a 
master’s degree with a concentration in 
reading and writing education; and 
‘‘(ii) has demonstrated proficiency (as 
determined by the principal of the individ-
ual’s school) in teaching reading and writ-
ing in a content area such as math, 
science, or social studies; 
‘‘(B) whose primary role with teachers and 
school personnel is— 
‘‘(i) to provide high-quality profes-
sional development opportunities for teach-
ers and school personnel related to literacy; 
‘‘(ii) with respect to the areas of read-
ing and writing, to collaborate with para-
professionals, teachers, principals, and
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other administrators, and the community 
served by the school; and 
‘‘(iii) to work cooperatively and col-
laboratively with other professionals in 
planning programs to meet the needs of di-
verse population learners, including chil-
dren with disabilities and limited English 
proficient individuals; and 
‘‘(C) who may provide students with— 
‘‘(i) reading or writing diagnosis and 
instruction; and 
‘‘(ii) reading and writing assessment, 
including assessment in cooperation with 
other professionals (such as special edu-
cation teachers, speech and language 
teachers, and school psychologists). 
‘‘(15) POVERTY LINE.—The term ‘poverty line’ 
means the poverty line (as defined in section 673(2) 
of the Community Services Block Grant Act (42 
U.S.C. 9902(2))) applicable to a family of the size 
involved. 
‘‘(16) 
PROFESSIONAL
DEVELOPMENT.—The 
term ‘professional development’ has the meaning 
given the term in section 9101 of the Elementary 
and Secondary Education Act of 1965.
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‘‘(17) SCIENTIFICALLY VALID RESEARCH.—The 
term ‘scientifically valid research’ includes applied 
research, basic research, and field-initiated research 
in which the rationale, design, and interpretation are 
soundly developed in accordance with accepted prin-
ciples of scientific research. 
‘‘(18) TEACHING SKILLS.—The term ‘teaching 
skills’ means skills that enable a teacher to— 
‘‘(A) increase student learning, achieve-
ment, and the ability to apply knowledge; 
‘‘(B) effectively convey and explain aca-
demic subject matter; 
‘‘(C) employ strategies grounded in the 
disciplines of teaching and learning that— 
‘‘(i) are based on empirically based 
practice and scientifically valid research, 
where applicable, related to teaching and 
learning; 
‘‘(ii) are specific to academic subject 
matter; and 
‘‘(iii) focus on the identification of 
students’ specific learning needs, particu-
larly students with disabilities, students 
who are limited English proficient, stu-
dents who are gifted and talented, and stu-
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dents with low literacy levels, and the tai-
loring of academic instruction to such 
needs; 
‘‘(D) conduct an ongoing assessment of 
student learning, which may include the use of 
formative assessments, performance-based as-
sessments, project-based assessments, or port-
folio assessments, that measure higher-order 
thinking skills, including application, analysis, 
synthesis, and evaluation; 
‘‘(E) effectively manage a classroom, in-
cluding the ability to implement positive behav-
ioral intervention support strategies; 
‘‘(F) communicate and work with parents 
and guardians, and involve parents and guard-
ians in their children’s education; and 
‘‘(G) use, in the case of an early childhood 
educator, age-appropriate and developmentally 
appropriate strategies and practices for children 
in early education programs. 
‘‘SEC. 200A. RULE OF CONSTRUCTION. 
‘‘Nothing in this title shall be construed to alter or 
otherwise affect the rights, remedies, and procedures af-
forded to the employees of local educational agencies 
under Federal, State, or local laws (including applicable
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•HR 4137 EH2S 
regulations or court orders) or under the terms of collec-
tive bargaining agreements, memoranda of understanding, 
or other agreements between such employees and their em-
ployers, including the right of employees of local edu-
cational agencies to engage in collective bargaining with 
their employers. 
‘‘PART A—TEACHER QUALITY PARTNERSHIP 
GRANTS 
‘‘SEC. 201. PURPOSES; DEFINITIONS. 
‘‘(a) PURPOSES.—The purposes of this part are to— 
‘‘(1) improve student achievement; 
‘‘(2) improve the quality of the current and fu-
ture teaching force by improving the preparation of 
prospective teachers and enhancing professional de-
velopment activities; 
‘‘(3) hold teacher preparation programs at in-
stitutions of higher education accountable for pre-
paring highly qualified teachers; and 
‘‘(4) recruit highly qualified individuals, includ-
ing minorities and individuals from other occupa-
tions, into the teaching force. 
‘‘(b) DEFINITIONS.—In this part: 
‘‘(1) ELIGIBLE PARTNERSHIP.—The term ‘eligi-
ble partnership’ means an entity that— 
‘‘(A) shall include—
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•HR 4137 EH2S 
‘‘(i) a high-need local educational 
agency; 
‘‘(ii) a high-need school or a consor-
tium of high-need schools served by the 
high-need local educational agency or, as 
applicable, a high-need early childhood 
education program; 
‘‘(iii) a partner institution; 
‘‘(iv) a school, department, or pro-
gram of education within such partner in-
stitution or a teacher professional develop-
ment program within such partner institu-
tion; and 
‘‘(v) a school or department of arts 
and sciences within such partner institu-
tion; and 
‘‘(B) may include any of the following: 
‘‘(i) The Governor of the State. 
‘‘(ii) The State educational agency. 
‘‘(iii) The State board of education. 
‘‘(iv) The State agency for higher edu-
cation. 
‘‘(v) A business. 
‘‘(vi) A public or private nonprofit 
educational organization.
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•HR 4137 EH2S 
‘‘(vii) An educational service agency. 
‘‘(viii) A teacher organization. 
‘‘(ix) A high-performing local edu-
cational agency, or a consortium of such 
local educational agencies, that can serve 
as a resource to the partnership. 
‘‘(x) A charter school (as defined in 
section 5210 of the Elementary and Sec-
ondary Education Act of 1965). 
‘‘(xi) A school or department within 
the partner institution that focuses on psy-
chology and human development. 
‘‘(xii) A school or department within 
the partner institution with comparable ex-
pertise in the disciplines of teaching, learn-
ing, and child and adolescent development. 
‘‘(xiii) An entity operating a program 
that provides alternative routes to State 
certification of teachers. 
‘‘(2) INDUCTION PROGRAM.—The term ‘induc-
tion program’ means a formalized program for new 
teachers during not less than the teachers’ first 2 
years of teaching that is designed to provide support 
for, and improve the professional performance and 
advance the retention in the teaching field of, begin-
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•HR 4137 EH2S 
ning teachers. Such program shall promote effective 
teaching skills and shall include the following compo-
nents: 
‘‘(A) High-quality teacher mentoring. 
‘‘(B) Periodic, structured time for collabo-
ration with mentor teachers in the same depart-
ment or field, as well as time for information- 
sharing among teachers, principals, administra-
tors, and participating faculty in the partner in-
stitution. 
‘‘(C) The application of empirically based 
practice and scientifically valid research on in-
structional practices. 
‘‘(D) Opportunities for new teachers to 
draw directly upon the expertise of teacher 
mentors, faculty, and researchers to support the 
integration of empirically based practice and 
scientifically valid research with practice. 
‘‘(E) The development of skills in instruc-
tional and behavioral interventions derived from 
empirically based practice and, where applica-
ble, scientifically valid research. 
‘‘(F) Faculty who— 
‘‘(i) model the integration of research 
and practice in the classroom; and
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‘‘(ii) assist new teachers with the ef-
fective use and integration of technology in 
the classroom. 
‘‘(G) Interdisciplinary collaboration among 
exemplary teachers, faculty, researchers, and 
other staff who prepare new teachers with re-
spect to the learning process and the assess-
ment of learning. 
‘‘(H) Assistance with the understanding of 
data, particularly student achievement data, 
and the data’s applicability in classroom in-
struction. 
‘‘(I) Structured and formal observation of 
new teachers, and feedback for such teachers, 
at least 4 times each school year by multiple 
evaluators, including master teachers and the 
principal, using valid and reliable benchmarks 
of teaching skills and standards developed with 
input from teachers. 
‘‘(3) PARTNER INSTITUTION.—The term ‘part-
ner institution’ means an institution of higher edu-
cation, which may include a 2-year institution of 
higher education offering a dual program with a 4- 
year institution of higher education, participating in
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•HR 4137 EH2S 
based teacher preparation program in which a pro-
spective teacher— 
‘‘(A) for 1 academic year, teaches along-
side a mentor teacher, who is the teacher of 
record; 
‘‘(B) receives concurrent instruction during 
the year described in subparagraph (A) from 
the partner institution, which may include 
courses taught by local educational agency per-
sonnel or residency program faculty, in the 
teaching of the content area in which the teach-
er will become certified or licensed; 
‘‘(C) acquires effective teaching skills; and 
‘‘(D) prior to completion of the program, 
earns a master’s degree, attains full State 
teacher certification or licensure, and becomes 
highly qualified. 
‘‘SEC. 202. PARTNERSHIP GRANTS. 
‘‘(a) PROGRAM AUTHORIZED.—From amounts made 
available under section 209, the Secretary is authorized 
to award grants, on a competitive basis, to eligible part-
nerships, to enable the eligible partnerships to carry out 
the activities described in subsection (c). 
‘‘(b) APPLICATION.—Each eligible partnership desir-
ing a grant under this section shall submit an application
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•HR 4137 EH2S 
to the Secretary at such time, in such manner, and accom-
panied by such information as the Secretary may require. 
Each such application shall contain— 
‘‘(1) a needs assessment of all the partners in 
the eligible partnership with respect to the prepara-
tion, ongoing training, professional development, and 
retention, of general and special education teachers, 
principals, and, as applicable, early childhood edu-
cators; 
‘‘(2) a description of the extent to which the 
program prepares prospective and new teachers with 
strong teaching skills; 
‘‘(3) a description of how the program will pre-
pare prospective and new teachers to use research 
and data to modify and improve instruction in the 
classroom; 
‘‘(4) a description of how the partnership will 
coordinate strategies and activities assisted under 
the grant with other teacher preparation or profes-
sional development programs, including those funded 
under the Elementary and Secondary Education Act 
of 1965 and the Individuals with Disabilities Edu-
cation Act, and through the National Science Foun-
dation, and how the activities of the partnership will
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•HR 4137 EH2S 
be consistent with State, local, and other education 
reform activities that promote student achievement; 
‘‘(5) a resource assessment that describes the 
resources available to the partnership, including— 
‘‘(A) the integration of funds from other 
sources; 
‘‘(B) the intended use of the grant funds; 
and 
‘‘(C) the commitment of the resources of 
the partnership, including financial support, 
faculty participation, and time commitments, to 
the activities assisted under this section and to 
the continuation of the activities when the grant 
ends; 
‘‘(6) a description of— 
‘‘(A) how the partnership will meet the 
purposes of this part; 
‘‘(B) how the partnership will carry out 
the activities required under subsection (d) or 
(e) based on the needs identified in paragraph 
(1), with the goal of improving student achieve-
ment; 
‘‘(C) the partnership’s evaluation plan 
under section 204(a);
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•HR 4137 EH2S 
‘‘(D) how the partnership will align the 
teacher preparation program with the— 
‘‘(i) State early learning standards for 
early childhood education programs, as ap-
propriate, and with the relevant domains of 
early childhood development; and 
‘‘(ii) student academic achievement 
standards and academic content standards 
under section 1111(b)(2) of the Elemen-
tary and Secondary Education Act of 
1965, established by the State in which the 
partnership is located; 
‘‘(E) how the partnership will prepare gen-
eral education teachers to teach students with 
disabilities, including training related to partici-
pation as a member of individualized education 
program 
teams, 
as 
defined 
in 
section 
614(d)(1)(B) of the Individuals with Disabil-
ities Education Act; 
‘‘(F) how the partnership will prepare gen-
eral education and special education teachers to 
teach students with limited English proficiency; 
‘‘(G) how faculty at the partner institution 
will work, during the term of the grant, with 
highly qualified teachers in the classrooms of
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•HR 4137 EH2S 
schools served by the high-need local edu-
cational agency in the partnership to provide 
high-quality professional development activities; 
‘‘(H) how the partnership will design, im-
plement, or enhance a year-long, rigorous, and 
enriching teaching pre-service clinical program 
component; 
‘‘(I) how the partnership will support in- 
service professional development strategies and 
activities; and 
‘‘(J) how the partnership will collect, ana-
lyze, and use data on the retention of all teach-
ers and early childhood educators in schools 
and early childhood programs located in the ge-
ographic area served by the partnership to 
evaluate the effectiveness of the partnership’s 
teacher and educator support system; and 
‘‘(7) with respect to the induction program re-
quired as part of the activities carried out under this 
section— 
‘‘(A) a description of how the teacher prep-
aration program will design and implement an 
induction program to support all new teachers 
through not less than the first 2 years of teach-
ing in the further development of the new
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•HR 4137 EH2S 
teachers’ teaching skills, including the use of 
mentors who are trained and compensated by 
such program for the mentors’ work with new 
teachers; 
‘‘(B) a demonstration that the schools and 
departments within the institution of higher 
education that are part of the induction pro-
gram have relevant and essential roles in the ef-
fective preparation of teachers, including con-
tent expertise and expertise in teaching; 
‘‘(C) a demonstration of the partnership’s 
capability and commitment to the use of empiri-
cally based practice and scientifically valid re-
search related to teaching and learning, and the 
accessibility to and involvement of faculty; and 
‘‘(D) a description of how faculty involved 
in the induction program will be able to sub-
stantially participate in an early childhood edu-
cation program or an elementary or secondary 
school classroom setting, as applicable, includ-
ing release time and receiving workload credit 
for such participation. 
‘‘(c) REQUIRED USE OF GRANT FUNDS.—An eligible 
partnership that receives a grant under this section shall 
use grant funds to carry out a program for the pre-bacca-