H. R. 1777 
One Hundred Eleventh Congress 
of the 
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Tuesday, 
the sixth day of January, two thousand and nine 
An Act 
To make technical corrections to the Higher Education Act of 1965, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of contents. 
Sec. 2. References. 
Sec. 3. Effective date. 
TITLE I—GENERAL PROVISIONS 
Sec. 101. General provisions. 
TITLE II—TEACHER QUALITY ENHANCEMENT 
Sec. 201. Teacher quality enhancement. 
TITLE III—INSTITUTIONAL AID 
Sec. 301. Institutional aid. 
Sec. 302. Multiagency study of minority science programs. 
TITLE IV—STUDENT ASSISTANCE 
Sec. 401. Grants to students in attendance at institutions of higher education. 
Sec. 402. Federal Family Education Loan Program. 
Sec. 403. Federal work-study programs. 
Sec. 404. Federal Direct Loan Program. 
Sec. 405. Federal Perkins Loans. 
Sec. 406. Need analysis. 
Sec. 407. General provisions of title IV. 
Sec. 408. Program integrity. 
Sec. 409. Waiver of master calendar and negotiated rulemaking requirements. 
TITLE V—DEVELOPING INSTITUTIONS 
Sec. 501. Developing institutions. 
TITLE VI—INTERNATIONAL EDUCATION PROGRAMS 
Sec. 601. International education programs. 
TITLE VII—GRADUATE AND POSTSECONDARY IMPROVEMENT 
Sec. 701. Graduate and postsecondary improvement programs. 
TITLE VIII—ADDITIONAL PROGRAMS 
Sec. 801. Additional programs. 
Sec. 802. Amendments to other higher education Acts. 
SEC. 2. 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
H. R. 1777—2 
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.). 
SEC. 3. EFFECTIVE DATE. 
Except as otherwise provided in this Act, the amendments 
made by this Act shall take effect as if enacted on the date of 
enactment of the Higher Education Opportunity Act (Public Law 
110–315). 
TITLE I—GENERAL PROVISIONS 
SEC. 101. GENERAL PROVISIONS. 
(a) HIGHER EDUCATION OPPORTUNITY ACT.— 
(1) GENERAL DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION.—Section 101(b) of the Higher Education Opportunity 
Act (Public Law 110–315) is amended by striking ‘‘July 1, 
2010’’ and inserting ‘‘the date of enactment of this Act’’. 
(2) DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR 
PURPOSES OF TITLE IV PROGRAMS.—Section 102(e) of the Higher 
Education Opportunity Act (Public Law 110–315) is amended 
by striking the period at the end and inserting ‘‘, except that, 
with respect to foreign nursing schools that were eligible to 
participate in part B of title IV as of the day before the 
date of enactment of this Act, the amendments made by sub-
section (a)(1)(D) shall take effect on July 1, 2012.’’. 
(b) HIGHER EDUCATION ACT OF 1965.—Title I (20 U.S.C. 1001 
et seq.) is amended— 
(1) in section 102(a)(2)(D) (20 U.S.C. 1002(a)(2)(D)), by 
striking ‘‘under part B’’ and inserting ‘‘under part B of title 
IV’’; 
(2) in section 111(b) (20 U.S.C. 1011(b)), by striking ‘‘With’’ 
and inserting ‘‘with’’; 
(3) 
in 
section 
131(a)(3)(A)(iii)(I) 
(20 
U.S.C. 
1015(a)(3)(A)(iii)(I)), by striking ‘‘section 428(a)(2)(C)(i)’’ and 
inserting ‘‘section 428(a)(2)(C)(ii)’’; 
(4) in section 136(d)(1) (20 U.S.C. 1015e(d)(1)), by striking 
‘‘(Family Educational Rights and Privacy Act of 1974)’’ and 
inserting ‘‘(commonly known as the ‘Family Educational Rights 
and Privacy Act of 1974’)’’; 
(5) in section 141 (20 U.S.C. 1018)— 
(A) in the matter preceding subparagraph (A) of sub-
section (c)(3), by striking ‘‘under this title’’ and inserting 
‘‘under title IV’’; and 
(B) in subsection (d)(3), by striking ‘‘appropriate 
committees of Congress’’ and inserting ‘‘authorizing 
committees’’; 
(6) 
in 
section 
153(a)(1)(B)(iii)(V) 
(20 
U.S.C. 
1019b(a)(1)(B)(iii)(V)), by striking ‘‘borrowers who take out 
loans under’’ each place the term appears and inserting ‘‘bor-
rowers of loans made under’’; and 
(7) in section 155(a) (20 U.S.C. 1019d(a)), by striking para-
graph (4) and inserting the following: 
‘‘(4) include a place to provide information on— 
‘‘(A) the applicant’s cost of attendance at the institution 
of higher education, as determined by the institution under 
part F of title IV;
H. R. 1777—3 
‘‘(B) the applicant’s estimated financial assistance, 
including amounts of financial assistance used to replace 
the expected family contribution, as determined by the 
institution, in accordance with title IV, for students who 
have completed the Free Application for Federal Student 
Aid; and 
‘‘(C) the difference between the amounts under sub-
paragraphs (A) and (B), as applicable; and’’. 
TITLE II—TEACHER QUALITY 
ENHANCEMENT 
SEC. 201. TEACHER QUALITY ENHANCEMENT. 
Title II (20 U.S.C. 1021 et seq.) is amended— 
(1) in section 200(22) (20 U.S.C. 1021(22)), by striking 
subparagraph (D) and inserting the following: 
‘‘(D) prior to completion of the program— 
‘‘(i) attains full State certification or licensure and 
becomes highly qualified; and 
‘‘(ii) acquires a master’s degree not later than 18 
months after beginning the program.’’; 
(2) in section 202 (20 U.S.C. 1022a)— 
(A) in subsection (b)(6)(E)(ii), by striking ‘‘section 
1111(b)(2)’’ and inserting ‘‘section 1111(b)(1)’’; 
(B) in subsection (c)(1), by striking ‘‘pre-baccalaureate’’; 
(C) in subsection (d)— 
(i) in the heading, by striking ‘‘PRE-BACCA-
LAUREATE’’ and inserting ‘‘THE’’; and 
(ii) in the matter preceding paragraph (1), by 
striking ‘‘An eligible partnership that receives a grant 
to carry out an effective program for the pre-bacca-
laureate preparation of teachers shall carry out a pro-
gram that includes all of the following:’’ and inserting 
‘‘An eligible partnership that receives a grant to carry 
out a program for the preparation of teachers shall 
carry out an effective pre-baccalaureate teacher 
preparation program or a 5th year initial licensing 
program that includes all of the following:’’; 
(D) in subsection (e)(2)— 
(i) in subparagraph (A)(ii), by striking ‘‘to earn’’ 
and inserting ‘‘leading to’’; and 
(ii) in subparagraph (C)— 
(I) in clause (i), by striking ‘‘one-year’’ before 
‘‘teaching residency program’’; and 
(II) in clause (iii)(I), by striking ‘‘one-year’’; 
and 
(E) in subsection (i)(3), by striking ‘‘consent of’’ and 
inserting ‘‘consent to’’; and 
(3) in section 231(a)(1) (20 U.S.C. 1032(a)(1)), by striking 
‘‘serve graduate’’ and inserting ‘‘assist in the graduation of’’. 
TITLE III—INSTITUTIONAL AID 
SEC. 301. INSTITUTIONAL AID. 
Title III (20 U.S.C. 1051 et seq.) is amended—
H. R. 1777—4 
(1) in section 316 (20 U.S.C. 1059c)— 
(A) in subsection (a), by striking ‘‘Indian Tribal’’ and 
inserting ‘‘Tribal’’; and 
(B) in subsection (b)— 
(i) in paragraph (1), by striking ‘‘the Tribally Con-
trolled College or University Assistance Act of 1978’’ 
and inserting ‘‘the Tribally Controlled Colleges and 
Universities Assistance Act of 1978’’; 
(ii) in paragraph (2), by striking ‘‘the Tribally Con-
trolled College or University Assistance Act of 1978’’ 
and inserting ‘‘the Tribally Controlled Colleges and 
Universities Assistance Act of 1978’’; and 
(iii) in paragraph (3)(A), by striking ‘‘the Navajo 
Community College Assistance Act of 1978’’ and 
inserting ‘‘the Navajo Community College Act’’; 
(2) in section 318(b)(1) (20 U.S.C. 1059e(b)(1)), by striking 
subparagraph (F) and inserting the following: 
‘‘(F) is not receiving assistance under— 
‘‘(i) part B; 
‘‘(ii) part A of title V; or 
‘‘(iii) an annual authorization of appropriations 
under the Act of March 2, 1867 (14 Stat. 438; 20 
U.S.C. 123).’’; 
(3) in section 323(a) (20 U.S.C. 1062(a)), in the matter 
preceding paragraph (1), by striking ‘‘in any fiscal year’’ and 
inserting ‘‘for any fiscal year,’’; 
(4) in section 324(d) (20 U.S.C. 1063(d))— 
(A) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively; 
(B) by striking ‘‘Notwithstanding subsections (a)’’ and 
inserting ‘‘(1) Notwithstanding subsections (a)’’; and 
(C) by adding at the end the following: 
‘‘(2) If the amount appropriated pursuant to section 399(a)(2)(A) 
for any fiscal year is not sufficient to pay the minimum allotment 
required by paragraph (1) to all part B institutions, the amount 
of such minimum allotments shall be ratably reduced. If additional 
sums become available for such fiscal year, such reduced allocations 
shall be increased on the same basis as the basis on which they 
were reduced (until the amount allotted equals the minimum allot-
ment required by paragraph (1)).’’; 
(5) in section 351(a) (20 U.S.C. 1067a(a))— 
(A) by striking ‘‘section 304(a)(1)’’ and inserting ‘‘section 
303(a)(1)’’; and 
(B) by striking ‘‘of 1979’’; 
(6) in section 355(a) (20 U.S.C. 1067e(a)), by striking ‘‘302’’ 
and inserting ‘‘312’’; 
(7) in section 371(c) (20 U.S.C. 1067q(c))— 
(A) in paragraph (3)(D), by striking ‘‘402A(g)’’ and 
inserting ‘‘402A(h)’’; 
(B) in paragraph (4), by striking ‘‘402A(g)’’ and 
inserting ‘‘402A(h)’’; and 
(C) in paragraph (9)— 
(i) in subparagraph (C)(iii), by striking ‘‘402A(g)’’ 
and inserting ‘‘402A(h)’’; and 
(ii) by amending subparagraph (F) to read as fol-
lows: 
‘‘(F) is not receiving assistance under—
H. R. 1777—5 
‘‘(i) part B; 
‘‘(ii) part A of title V; or 
‘‘(iii) an annual authorization of appropriations 
under the Act of March 2, 1867 (14 Stat. 438; 20 
U.S.C. 123).’’; and 
(8) in section 392(a)(6) (20 U.S.C. 1068a(a)(6)), by striking 
‘‘College or University’’ and inserting ‘‘Colleges and Univer-
sities’’. 
SEC. 302. MULTIAGENCY STUDY OF MINORITY SCIENCE PROGRAMS. 
Section 1024 (20 U.S.C. 1067d) is repealed. 
TITLE IV—STUDENT ASSISTANCE 
SEC. 401. GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS 
OF HIGHER EDUCATION. 
(a) AMENDMENTS.—Part A of title IV (20 U.S.C. 1070 et seq.) 
is amended— 
(1) in section 400(b) (20 U.S.C. 1070(b)), by striking ‘‘1 
through 8’’ and inserting ‘‘1 through 9’’; 
(2) in section 401 (20 U.S.C. 1070a)— 
(A) in the second sentence of subsection (a)(1), by 
striking ‘‘manner,,’’ and inserting ‘‘manner,’’; 
(B) in subsection (b)(1), by striking ‘‘section 401’’ and 
inserting ‘‘this section’’; and 
(C) in subsection (b)(9)(A)— 
(i) in clause (vi), by striking ‘‘$105,000,000’’ and 
inserting ‘‘$258,000,000’’; and 
(ii) in clause (viii), by striking ‘‘$4,400,000,000’’ 
and inserting ‘‘$4,452,000,000’’; 
(3) by striking paragraph (4) of section 401(f) (20 U.S.C. 
1070a(f)), as added by section 401(c) of the Higher Education 
Opportunity Act (Public Law 110–315); 
(4) in section 402A (20 U.S.C. 1070a–11)— 
(A) in subsection (b)(1), by striking ‘‘organizations 
including’’ and inserting ‘‘organizations, including’’; and 
(B) in subsection (c)(8)(C)(iv)(I), by inserting ‘‘to be’’ 
after ‘‘determined’’; 
(5) in section 402E(d)(2)(C) (20 U.S.C. 1070a–15(d)(2)(C)), 
by striking ‘‘320.’’ and inserting ‘‘320’’; 
(6) in section 415E(b)(1)(B) (20 U.S.C. 1070c–3a(b)(1)(B))— 
(A) in clause (i), by striking ‘‘If a’’ and inserting ‘‘Except 
as provided in clause (ii), if a’’; 
(B) by redesignating clause (ii) as clause (iii); and 
(C) by inserting after clause (i) (as amended by 
subparagraph (A)) the following: 
‘‘(ii) 
SPECIAL
CONTINUATION
AND
TRANSITION 
RULE.—If a State that applied for and received an 
allotment under this section for fiscal year 2010 pursu-
ant to subsection (j) meets the specifications estab-
lished in the State’s application under subsection (c) 
for fiscal year 2011, then the Secretary shall make 
an allotment to such State for fiscal year 2011 that 
is not less than the allotment made pursuant to sub-
section (j) to such State for fiscal year 2010 under 
this section (as this section was in effect on the day
H. R. 1777—6 
before the date of enactment of the Higher Education 
Opportunity Act (Public Law 110–315)).’’; 
(7) in section 419C(b)(1) (20 U.S.C. 1070d–33(b)(1)), by 
inserting ‘‘and’’ after the semicolon at the end; 
(8) in section 419D(d) (20 U.S.C. 1070d–34(d)), by striking 
‘‘1134’’ and inserting ‘‘134’’; and 
(9) by adding at the end the following: 
‘‘Subpart 10—Scholarships for Veteran’s 
Dependents 
‘‘SEC. 420R. SCHOLARSHIPS FOR VETERAN’S DEPENDENTS. 
‘‘(a) DEFINITION OF ELIGIBLE VETERAN’S DEPENDENT.—The term 
‘eligible veteran’s dependent’ means a dependent or an independent 
student— 
‘‘(1) whose parent or guardian was a member of the Armed 
Forces of the United States and died as a result of performing 
military service in Iraq or Afghanistan after September 11, 
2001; and 
‘‘(2) who, at the time of the parent or guardian’s death, 
was— 
‘‘(A) less than 24 years of age; or 
‘‘(B) enrolled at an institution of higher education on 
a part-time or full-time basis. 
‘‘(b) GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary shall award a grant to 
each eligible veteran’s dependent to assist in paying the eligible 
veteran’s dependent’s cost of attendance at an institution of 
higher education. 
‘‘(2) DESIGNATION.—Grants made under this section shall 
be known as ‘Iraq and Afghanistan Service Grants’. 
‘‘(c) PREVENTION OF DOUBLE BENEFITS.—No eligible veteran’s 
dependent may receive a grant under both this section and section 
401. 
‘‘(d) TERMS AND CONDITIONS.—The Secretary shall award grants 
under this section in the same manner, and with the same terms 
and conditions, including the length of the period of eligibility, 
as the Secretary awards Federal Pell Grants under section 401, 
except that— 
‘‘(1) the award rules and determination of need applicable 
to the calculation of Federal Pell Grants, shall not apply to 
grants made under this section; 
‘‘(2) the provisions of subsection (a)(3), subsection (b)(1), 
the matter following subsection (b)(2)(A)(v), subsection (b)(3), 
and subsection (f), of section 401 shall not apply; and 
‘‘(3) a grant made under this section to an eligible veteran’s 
dependent for any award year shall equal the maximum Federal 
Pell Grant available for that award year, except that such 
a grant under this section— 
‘‘(A) shall not exceed the cost of attendance of the 
eligible veteran’s dependent for that award year; and 
‘‘(B) shall be adjusted to reflect the attendance by 
the eligible veteran’s dependent on a less than full-time 
basis in the same manner as such adjustments are made 
under section 401. 
‘‘(e) ESTIMATED FINANCIAL ASSISTANCE.—For purposes of deter-
minations of need under part F, a grant awarded under this section
H. R. 1777—7 
shall not be treated as estimated financial assistance as described 
in sections 471(3) and 480(j). 
‘‘(f) AUTHORIZATION AND APPROPRIATIONS OF FUNDS.—There are 
authorized to be appropriated, and there are appropriated, out 
of any money in the Treasury not otherwise appropriated, for the 
Secretary to carry out this section, such sums as may be necessary 
for fiscal year 2010 and each succeeding fiscal year.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection 
(a)(9) shall take effect on July 1, 2010. 
(c) HIGHER EDUCATION OPPORTUNITY ACT.—Section 404 of the 
Higher Education Opportunity Act (Public Law 110–315) is 
amended by adding at the end the following new subsection: 
‘‘(i) EFFECTIVE DATE; TRANSITION.— 
‘‘(1) IN GENERAL.—The amendments made by subsection 
(e) shall apply to grants made under chapter 2 of subpart 
2 of part A of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070a–21 et seq.) on or after the date of enactment 
of this Act, except that a recipient of a grant under such 
chapter that is made prior to such date may elect to apply 
the requirements contained in the amendments made by sub-
section (e) to that grant if the grant recipient informs the 
Secretary of the election. 
‘‘(2) SPECIAL RULE.—A grant recipient may make the elec-
tion described in paragraph (1) only if the election does not 
decrease the amount of the scholarship promised to an indi-
vidual student under the grant.’’. 
SEC. 402. FEDERAL FAMILY EDUCATION LOAN PROGRAM. 
(a) AMENDMENT TO PROVISION AMENDED BY THE COLLEGE COST 
REDUCTION AND ACCESS ACT.— 
(1) 
IN
GENERAL.—Section 
428(b)(1)(G)(i) 
(20 
U.S.C. 
1078(b)(1)(G)(i)), as amended by section 303 of the College 
Cost Reduction and Access Act (Public Law 110–84), is amended 
by striking ‘‘or 439(q)’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall be effective as if enacted as part of the amendment 
in section 303(a) of the College Cost Reduction and Access 
Act (Public Law 110–84), shall take effect on October 1, 2012, 
and shall apply with respect to loans made on or after such 
date. 
(b) ENTRANCE COUNSELING FUNCTIONS.— 
(1) GUARANTY
AGENCIES.—Section 428(b)(3) (20 U.S.C. 
1078(b)(3)) is amended— 
(A) in subparagraph (C), by inserting ‘‘or 485(l)’’ after 
‘‘section 485(b)’’; and 
(B) in subparagraph (D), by inserting ‘‘or 485(l)’’ after 
‘‘section 485(b)’’. 
(2) ELIGIBLE
LENDERS.—Section 435(d)(5) (20 U.S.C. 
1085(d)(5)) is amended— 
(A) in subparagraph (E), by inserting ‘‘or 485(l)’’ after 
‘‘section 485(b)’’; and 
(B) in subparagraph (F), by inserting ‘‘or 485(l)’’ after 
‘‘section 485(b)’’. 
(c) AMENDMENT TO PROVISION AMENDED BY THE HIGHER EDU-
CATION OPPORTUNITY ACT.— 
(1) IN GENERAL.—Section 428C(c)(3)(A) (20 U.S.C. 1078– 
3(c)(3)(A)), as amended by section 425 of the Higher Education
H. R. 1777—8 
Opportunity Act (Public Law 110–315), is amended by striking 
‘‘section 493C’’ and inserting ‘‘section 493C,’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall be effective as if enacted as part of the amendments 
in section 425(d)(1) of the Higher Education Opportunity Act 
(Public Law 110–315), and shall take effect on July 1, 2009. 
(d) REHABILITATION OF STUDENT LOANS.— 
(1) Section 428F (20 U.S.C. 1078–6) is amended— 
(A) in subsection (a)— 
(i) by amending paragraph (1) to read as follows: 
‘‘(1) SALE OR ASSIGNMENT OF LOAN.— 
‘‘(A) IN
GENERAL.—Each guaranty agency, upon 
securing 9 payments made within 20 days of the due date 
during 10 consecutive months of amounts owed on a loan 
for which the Secretary has made a payment under para-
graph (1) of section 428(c), shall— 
‘‘(i) if practicable, sell the loan to an eligible lender; 
or 
‘‘(ii) on or before September 30, 2011, assign the 
loan to the Secretary if— 
‘‘(I) the Secretary has determined that market 
conditions unduly limit a guaranty agency’s ability 
to sell loans under clause (i); and 
‘‘(II) the guaranty agency has been unable to 
sell loans under clause (i). 
‘‘(B) MONTHLY
PAYMENTS.—Neither the guaranty 
agency nor the Secretary shall demand from a borrower 
as monthly payment amounts described in subparagraph 
(A) more than is reasonable and affordable based on the 
borrower’s total financial circumstances. 
‘‘(C) CONSUMER REPORTING AGENCIES.—Upon the sale 
or assignment of the loan, the Secretary, guaranty agency 
or other holder of the loan shall request any consumer 
reporting agency to which the Secretary, guaranty agency 
or holder, as applicable, reported the default of the loan, 
to remove the record of the default from the borrower’s 
credit history. 
‘‘(D) DUTIES UPON SALE.—With respect to a loan sold 
under subparagraph (A)(i)— 
‘‘(i) the guaranty agency— 
‘‘(I) shall repay the Secretary 81.5 percent of 
the amount of the principal balance outstanding 
at the time of such sale, multiplied by the reinsur-
ance percentage in effect when payment under 
the guaranty agreement was made with respect 
to the loan; and 
‘‘(II) may, in order to defray collection costs— 
‘‘(aa) charge to the borrower an amount 
not to exceed 18.5 percent of the outstanding 
principal and interest at the time of the loan 
sale; and 
‘‘(bb) retain such amount from the pro-
ceeds of the loan sale; and 
‘‘(ii) the Secretary shall reinstate the Secretary’s 
obligation to— 
‘‘(I) reimburse the guaranty agency for the 
amount that the agency may, in the future, expend
H. R. 1777—9 
to discharge the guaranty agency’s insurance 
obligation; and 
‘‘(II) pay to the holder of such loan a special 
allowance pursuant to section 438. 
‘‘(E) DUTIES UPON ASSIGNMENT.—With respect to a loan 
assigned under subparagraph (A)(ii)— 
‘‘(i) the guaranty agency shall add to the principal 
and interest outstanding at the time of the assignment 
of such loan an amount equal to the amount described 
in subparagraph (D)(i)(II)(aa); and 
‘‘(ii) the Secretary shall pay the guaranty agency, 
for deposit in the agency’s Operating Fund established 
pursuant to section 422B, an amount equal to the 
amount added to the principal and interest outstanding 
at the time of the assignment in accordance with clause 
(i). 
‘‘(F) ELIGIBLE LENDER LIMITATION.—A loan shall not 
be sold to an eligible lender under subparagraph (A)(i) 
if such lender has been found by the guaranty agency 
or the Secretary to have substantially failed to exercise 
the due diligence required of lenders under this part. 
‘‘(G) DEFAULT DUE TO ERROR.—A loan that does not 
meet the requirements of subparagraph (A) may also be 
eligible for sale or assignment under this paragraph upon 
a determination that the loan was in default due to clerical 
or data processing error and would not, in the absence 
of such error, be in a delinquent status.’’; 
(ii) in paragraph (2)— 
(I) by striking ‘‘paragraph (1) of this sub-
section’’ and inserting ‘‘paragraph (1)(A)(i)’’; and 
(II) by striking ‘‘paragraph (1)(B)(ii) of this 
subsection’’ and inserting ‘‘paragraph (1)(D)(ii)(I)’’; 
(iii) in paragraph (3)— 
(I) by striking ‘‘sold under paragraph (2)’’ and 
inserting ‘‘sold or assigned under paragraph 
(1)(A)’’; and 
(II) by striking ‘‘sale.’’ and inserting ‘‘sale or 
assignment.’’; 
(iv) in paragraph (4), by striking ‘‘which is sold 
under paragraph (1) of this subsection’’ and inserting 
‘‘that is sold or assigned under paragraph (1)’’; and 
(v) in paragraph (5), by inserting ‘‘(whether by 
loan sale or assignment)’’ after ‘‘rehabilitating a loan’’; 
and 
(B) in subsection (b), in the first sentence, by inserting 
‘‘or assigned to the Secretary’’ after ‘‘sold to an eligible 
lender’’. 
(2) EFFECTIVE DATE.—The amendments made by paragraph 
(1) shall be effective on the date of enactment of this Act, 
and shall apply to any loan on which monthly payments 
described in section 428F(a)(1)(A) were paid before, on, or after 
such date of enactment. 
(e) REPAYMENT IN FULL FOR DEATH AND DISABILITY.— 
(1) IN GENERAL.—Section 437(a)(1) (20 U.S.C. 1087(a)(1)), 
as amended by section 437 of the Higher Education Opportunity 
Act (Public Law 110–315), is amended—
H. R. 1777—10 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘Secretary),, or if’’ and inserting ‘‘Secretary), or 
if’’; and 
(B) in subparagraph (B), by inserting ‘‘the reinstate-
ment and resumption to be’’ after ‘‘determines’’. 
(2) EFFECTIVE DATE.—The amendments made by paragraph 
(1) shall be effective as if enacted as part of the amendments 
in section 437(a) of the Higher Education Opportunity Act 
(Public Law 110–315), and shall take effect on July 1, 2010. 
(f) OTHER AMENDMENTS.—Part B of title IV (20 U.S.C. 1071 
et seq.) is further amended— 
(1) in section 428 (20 U.S.C. 1078)— 
(A) in subsection (a)(2)(A)(i)(II), by striking ‘‘and’’ after 
the semicolon at the end; 
(B) in subsection (b)— 
(i) in the matter following subclause (II) of para-
graph (1)(M)(i), by inserting ‘‘section’’ before ‘‘428B’’; 
(ii) in paragraph (3)(A)(i), by striking ‘‘any institu-
tion of higher education or the employees of an institu-
tion of higher education’’ and inserting ‘‘any institution 
of higher education, any employee of an institution 
of higher education, or any individual or entity’’; 
(iii) in paragraph (4), by striking ‘‘For the purpose 
of paragraph (1)(M)(i)(III) of this subsection,’’ and 
inserting ‘‘With respect to the graduate fellowship pro-
gram referred to in paragraph (1)(M)(i)(II),’’; and 
(iv) in paragraph (7)— 
(I) in subparagraph (B), by striking ‘‘clause 
(i) or (ii) of’’; and 
(II) in subparagraph (D), by striking ‘‘subpara-
graph (A)(i)’’ and inserting ‘‘subparagraph (A)’’; and 
(C) in subsection (c)(9)(K), by striking ‘‘3 months’’ and 
inserting ‘‘6 months’’; 
(2) in section 428B(e) (20 U.S.C. 1078–2(e))— 
(A) in paragraph (3)(B), by striking ‘‘subsection 
(c)(5)(B)’’ and inserting ‘‘subsection (d)(5)(B)’’; and 
(B) by repealing paragraph (5); 
(3) in section 428C (20 U.S.C. 1078–3)— 
(A) in subsection (a)(4)(E), by striking ‘‘subpart II of 
part B’’ and inserting ‘‘part E’’; 
(B) in the matter preceding clause (i) of subsection 
(c)(2)(A)— 
(i) by striking ‘‘subsection (b)(2)(F)’’ and inserting 
‘‘subsection (b)(2)’’; and 
(ii) by inserting a comma after ‘‘graduated’’; 
(C) in subsection (d)(3)(D), by striking ‘‘loan insurance 
fund’’ and inserting ‘‘loan insurance account’’; and 
(D) in subsection (f)(3), by striking ‘‘subsection (a)’’ 
and inserting ‘‘this subsection’’; 
(4) in section 428G(c) (20 U.S.C. 1078–7(c))— 
(A) 
in 
paragraph 
(1), 
by 
striking 
‘‘section 
428(a)(2)(A)(i)(III)’’ 
and 
inserting 
‘‘section 
428(a)(2)(A)(i)(II)’’; and 
(B) by striking paragraph (3) and inserting the fol-
lowing: 
‘‘(3) notwithstanding subsection (a)(2), may, with the 
permission of the borrower, be disbursed by the lender on
H. R. 1777—11 
a weekly or monthly basis, provided that the proceeds of the 
loan are disbursed by the lender in substantially equal weekly 
or monthly installments, as the case may be, over the period 
of enrollment for which the loan is made.’’; 
(5) in section 428H (20 U.S.C. 1078–8)— 
(A) in subsection (d), by amending the text of the 
header of paragraph (2) to read as follows: ‘‘LIMITS FOR 
GRADUATE, 
PROFESSIONAL, 
AND
INDEPENDENT 
POSTBACCALAUREATE STUDENTS’’; and 
(B) in subsection (e), by amending paragraph (6) to 
read as follows: 
‘‘(6) REPAYMENT PERIOD.—For purposes of calculating the 
repayment period under section 428(b)(9), such period shall 
commence at the time the first payment of principal is due 
from the borrower.’’; 
(6) in section 428J (20 U.S.C. 1078–10)— 
(A) in subsection (c)(1), by adding at the end the fol-
lowing: ‘‘No borrower may receive a reduction of loan obliga-
tions under both this section and section 460.’’; and 
(B) in subsection (g)(2)— 
(i) in subparagraph (B), by inserting ‘‘or’’ after 
the semicolon at the end; 
(ii) by striking subparagraph (C); 
(iii) by redesignating subparagraph (D) as subpara-
graph (C); and 
(iv) in subparagraph (C), as redesignated by clause 
(iii), by striking ‘‘12571’’ and inserting ‘‘12601’’; 
(7) in section 428K(g)(9)(B) (20 U.S.C. 1078–11(g)(9)(B)), 
by striking ‘‘under subsection (ll)(3) of such section (42 U.S.C. 
1395x(ll)(3))’’ and inserting ‘‘under subsection (ll)(4) of such 
section (42 U.S.C. 1395x(ll)(4))’’; 
(8) in section 430A(f) (20 U.S.C. 1080a(f))— 
(A) by striking ‘‘and (6)’’ and inserting ‘‘and (5)’’; and 
(B) by striking ‘‘(a)(6)’’ and inserting ‘‘(a)(5)’’; 
(9) in section 432 (20 U.S.C. 1082)— 
(A) in subsection (b), by striking ‘‘section 1078 of this 
title’’ and inserting ‘‘section 428’’; and 
(B) in subsection (m)(1)(B)— 
(i) in clause (i), by inserting ‘‘and’’ after the semi-
colon at the end; and 
(ii) in clause (ii), by striking ‘‘; and’’ and inserting 
a period; 
(10) in section 435 (20 U.S.C. 1085)— 
(A) in subsection (a)(2)(C)(ii), by striking ‘‘a tribally 
controlled community college within the meaning of section 
2(a)(4) of the Tribally Controlled Community College 
Assistance Act of 1978’’ and inserting ‘‘a tribally controlled 
college or university, as defined in section 2(a)(4) of the 
Tribally Controlled Colleges and Universities Assistance 
Act of 1978’’; 
(B) in subsection (d)— 
(i) in paragraph (1)— 
(I) in subparagraph (A)(ii)(III), by striking 
‘‘section 501(1) of such Code’’ and inserting ‘‘section 
501(a) of such Code’’; and
H. R. 1777—12 
(II) in subparagraph (G), by striking ‘‘sections 
428A(d), 428B(d), and 428C,’’ and inserting ‘‘sec-
tions 428B(d) and 428C,’’; 
(ii) in paragraph (2)(A)(vi), by striking ‘‘section 
435(m)’’ and inserting ‘‘subsection (m)’’; 
(iii) in paragraph (3), by striking ‘‘section 435(m)’’ 
and inserting ‘‘subsection (m)’’; and 
(iv) in paragraph (5)(A), by striking ‘‘to any institu-
tion of higher education or any employee of an institu-
tion of higher education in order to secure applicants 
for loans under this part’’ and inserting ‘‘to any institu-
tion of higher education, any employee of an institution 
of higher education, or any individual or entity in 
order to secure applicants for loans under this part’’; 
(C) in subsection (o)(1)(A)(ii), by striking ‘‘Service’’ and 
inserting ‘‘Services’’; and 
(D) in subsection (p)(1), by striking ‘‘section 771’’ and 
inserting ‘‘section 781’’; and 
(11) in section 438(b)(2) (20 U.S.C. 1087–1(b)(2))— 
(A) in the second sentence of subparagraph (A), by 
striking ‘‘427A(f)’’ and inserting ‘‘427A(i)’’; 
(B) in the first sentence of subparagraph (B)(i), by 
striking ‘‘1954’’ and inserting ‘‘1986’’; and 
(C) in the second sentence of subparagraph (F), by 
striking ‘‘427A(f)’’ and inserting ‘‘427A(i)’’. 
SEC. 403. FEDERAL WORK-STUDY PROGRAMS. 
Section 443 (42 U.S.C. 2753) is amended— 
(1) in subsection (b)(2), by striking ‘‘section 443’’ and 
inserting ‘‘this section’’; 
(2) in subsection (d)(1), by striking ‘‘subsection (b)(2)(B)’’ 
and inserting ‘‘subsection (b)(2)(A)’’; and 
(3) in subsection (e)(1), in the matter preceding subpara-
graph (A), by striking ‘‘in accordance with such subsection’’. 
SEC. 404. FEDERAL DIRECT LOAN PROGRAM. 
(a) TEMPORARY AUTHORITY TO PURCHASE LOANS.—Section 459A 
(20 U.S.C. 1087i–1) is amended— 
(1) in subsection (a)— 
(A) in paragraph (2), in the matter preceding subpara-
graph (A), by striking ‘‘purchase of loans under this section’’ 
and inserting ‘‘purchase of loans under paragraph (1)’’; 
and 
(B) by inserting after paragraph (2) the following new 
paragraph: 
‘‘(3) TEMPORARY AUTHORITY TO PURCHASE REHABILITATED 
LOANS.— 
‘‘(A) 
AUTHORITY.—In 
addition 
to 
the 
authority 
described in paragraph (1), the Secretary, in consultation 
with the Secretary of the Treasury, is authorized to pur-
chase, or enter into forward commitments to purchase, 
from any eligible lender (as defined in section 435(d)(1)), 
loans that such lender purchased under section 428F on 
or after October 1, 2003, and before July 1, 2010, and 
that are not in default, on such terms as the Secretary, 
the Secretary of the Treasury, and the Director of the 
Office of Management and Budget jointly determine are 
in the best interest of the United States, except that any
H. R. 1777—13 
purchase under this paragraph shall not result in any 
net cost to the Federal Government (including the cost 
of servicing the loans purchased), as determined jointly 
by the Secretary, the Secretary of the Treasury, and the 
Director of the Office of Management and Budget. 
‘‘(B) FEDERAL REGISTER NOTICE.—The Secretary, the 
Secretary of the Treasury, and the Director of the Office 
of Management and Budget shall jointly publish a notice 
in the Federal Register prior to any purchase of loans 
under this paragraph that— 
‘‘(i) establishes the terms and conditions governing 
the purchases authorized by this paragraph; 
‘‘(ii) includes an outline of the methodology and 
factors that the Secretary, the Secretary of the 
Treasury, and the Director of the Office of Management 
and Budget will jointly consider in evaluating the price 
at which to purchase loans rehabilitated pursuant to 
section 428F(a); and 
‘‘(iii) describes how the use of such methodology 
and consideration of such factors used to determine 
purchase price will ensure that loan purchases do not 
result in any net cost to the Federal Government 
(including the cost of servicing the loans purchased).’’; 
and 
(2) by amending subsection (b) to read as follows: 
‘‘(b) PROCEEDS.—The Secretary shall require, as a condition 
of any purchase under subsection (a), that the funds paid by the 
Secretary to any eligible lender under this section be used— 
‘‘(1) to ensure continued participation of such lender in 
the Federal student loan programs authorized under part B 
of this title; and 
‘‘(2)(A) in the case of loans purchased pursuant to sub-
section (a)(1), to originate new Federal loans to students, as 
authorized under part B of this title; or 
‘‘(B) in the case of loans purchased pursuant to subsection 
(a)(3), to originate such new Federal loans to students, or 
to purchase loans in accordance with section 428F(a).’’. 
(b) OTHER AMENDMENTS.—Part D of title IV (20 U.S.C. 1087a 
et seq.) is amended— 
(1) by repealing paragraph (3) of section 453(c) (20 U.S.C. 
1087c(c)); 
(2) in section 455 (20 U.S.C. 1087e)— 
(A) in subsection (d)(1)(C), by striking ‘‘428(b)(9)(A)(v)’’ 
and inserting ‘‘428(b)(9)(A)(iv)’’; 
(B) in subsection (h), by striking ‘‘(except as authorized 
under section 457(a)(1))’’; and 
(C) in subsection (k)(1)(B), by striking ‘‘, or in a notice 
under section 457(a)(1),’’; 
(3) by repealing section 457 (20 U.S.C. 1087g); and 
(4) in section 460 (20 U.S.C. 1087j)— 
(A) in subsection (c)(1), by adding at the end the fol-
lowing: ‘‘No borrower may receive a reduction of loan obliga-
tions under both this section and section 428J.’’; and 
(B) in subsection (g)(2)— 
(i) by striking subparagraph (A);
H. R. 1777—14 
(ii) by redesignating subparagraphs (B) through 
(D) as subparagraphs (A) through (C), respectively; 
and 
(iii) in subparagraph (C), as redesignated by clause 
(ii), by striking ‘‘12571’’ and inserting ‘‘12601’’. 
SEC. 405. FEDERAL PERKINS LOANS. 
Part E of title IV (20 U.S.C. 1087aa et seq.) is amended— 
(1) in section 462(a)(1) (20 U.S.C. 1087bb(a)(1)), by striking 
subparagraph (A) and inserting the following: 
‘‘(A) 100 percent of the amount received under subsections 
(a) and (b) of this section for fiscal year 1999 (as such sub-
sections were in effect with respect to allocations for such 
fiscal year), multiplied by’’; 
(2) in section 463(c) (20 U.S.C. 1087cc(c))— 
(A) in paragraph (2)— 
(i) by moving the margins of subparagraph (A) 
2 ems to the left; and 
(ii) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) information concerning the repayment and collection 
of any such loan, including information concerning the status 
of such loan; and’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘and (6)’’ and inserting ‘‘and (5)’’; 
and 
(ii) by striking ‘‘(a)(6)’’ and inserting ‘‘(a)(5)’’; 
(3) in the first sentence of the matter preceding paragraph 
(1) of section 463A(a) (20 U.S.C. 1087cc–1(a)), by striking ‘‘, 
in order to carry out the provisions of section 463(a)(8),’’; 
(4) in section 464 (20 U.S.C. 1087dd)— 
(A) in subsection (c)— 
(i) in paragraph (1)(D)— 
(I) by striking ‘‘(I)’’ and inserting ‘‘(i)’’; and 
(II) by striking ‘‘(II)’’ and inserting ‘‘(ii)’’; and 
(ii) in paragraph (2)(A)(iii)— 
(I) by aligning the margin of the matter pre-
ceding subclause (I) with the margins of clause 
(ii); 
(II) by aligning the margins of subclauses (I) 
and (II) with the margins of clause (i)(I); and 
(III) by aligning the margins of the matter 
following subclause (II) with the margins of the 
matter following subclause (II) of clause (i); and 
(B) in subsection (g)(5), by striking ‘‘credit bureaus’’ 
and inserting ‘‘consumer reporting agencies’’; 
(5) in section 465(a)(6) (20 U.S.C. 1087ee(a)(6)), by striking 
‘‘12571’’ and inserting ‘‘12601’’; 
(6) in section 467(b) (20 U.S.C. 1087gg(b)), by striking 
‘‘paragraph (5)(A), (5)(B)(i), or (6)’’ and inserting ‘‘paragraph 
(4) or (5)’’; and 
(7) in section 469(c) (20 U.S.C. 1087ii(c)), by striking ‘‘and 
the term’’ and all that follows through the period at the end 
and inserting ‘‘and the term ‘early intervention services’ has 
the meaning given the term in section 632 of such Act.’’.
H. R. 1777—15 
SEC. 406. NEED ANALYSIS. 
(a) AMENDMENTS.—Part F of title IV (20 U.S.C. 1087kk et 
seq.) is amended— 
(1) in section 473 (20 U.S.C. 1087mm)— 
(A) by striking ‘‘For the purpose of this title, except 
subpart 2 of part A,’’ and inserting ‘‘(a) IN GENERAL.— 
For the purpose of this title, other than subpart 2 of part 
A, and except as provided in subsection (b),’’; and 
(B) by adding at the end the following: 
‘‘(b) SPECIAL RULE.— 
‘‘(1) IN GENERAL.—Notwithstanding any other provision of 
this title, the family contribution of each student described 
in paragraph (2) shall be deemed to be zero for the academic 
year for which the determination is made. 
‘‘(2) APPLICABILITY.—Paragraph (1) shall apply to any 
dependent or independent student with respect to determina-
tions of need for academic year 2009–2010 and succeeding 
academic years— 
‘‘(A) who is eligible to receive a Federal Pell Grant 
for the academic year for which the determination is made; 
‘‘(B) whose parent or guardian was a member of the 
Armed Forces of the United States and died as a result 
of performing military service in Iraq or Afghanistan after 
September 11, 2001; and 
‘‘(C) who, at the time of the parent or guardian’s death, 
was— 
‘‘(i) less than 24 years of age; or 
‘‘(ii) enrolled at an institution of higher education 
on a part-time or full-time basis. 
‘‘(3) INFORMATION.—Notwithstanding any other provision 
of law, the Secretary of Veterans Affairs and the Secretary 
of Defense, as appropriate, shall provide the Secretary of Edu-
cation with information necessary to determine which students 
meet the requirements of paragraph (2).’’; 
(2) in section 475(c)(5)(B) (20 U.S.C. 1087oo(c)(5)(B)), by 
inserting ‘‘of 1986’’ after ‘‘Code’’; 
(3) in section 477(b)(5)(B) (20 U.S.C. 1087qq(b)(5)(B)), by 
inserting ‘‘of 1986’’ after ‘‘Code’’; 
(4) in section 479 (20 U.S.C. 1087ss)— 
(A) in subsection (b) (as amended by section 602 of 
the College Cost Reduction and Access Act (Public Law 
110–84))— 
(i) in paragraph (1)(A)(i), by amending subclause 
(III) to read as follows: 
‘‘(III) include at least one parent who is a 
dislocated worker; or’’; and 
(ii) in paragraph (1)(B)(i), by amending subclause 
(III) to read as follows: 
‘‘(III) is a dislocated worker or has a spouse 
who is a dislocated worker; or’’; and 
(B) in subsection (c) (as amended by such section 602)— 
(i) in paragraph (1)(A), by amending clause (iii) 
to read as follows: 
‘‘(iii) include at least one parent who is a dislocated 
worker; or’’; and 
(ii) in paragraph (2)(A), by amending clause (iii) 
to read as follows:
H. R. 1777—16 
‘‘(iii) is a dislocated worker or has a spouse who 
is a dislocated worker; or’’; 
(5) in section 479C (20 U.S.C. 1087uu–1)— 
(A) in paragraph (1), by striking ‘‘under’’ and all that 
follows through ‘‘; and’’ and inserting ‘‘under Public Law 
98–64 (25 U.S.C. 117a et seq.; 97 Stat. 365) (commonly 
known as the ‘Per Capita Act’) or the Indian Tribal Judg-
ment Funds Use or Distribution Act (25 U.S.C. 1401 et 
seq.); and’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘Alaskan’’ and inserting ‘‘Alaska’’; 
(ii) by inserting ‘‘(43 U.S.C. 1601 et seq.)’’ before 
‘‘or the’’; and 
(iii) by inserting ‘‘of 1980 (25 U.S.C. 1721 et seq.)’’ 
after ‘‘Maine Indian Claims Settlement Act’’; 
(6) in section 480(a)(2) (20 U.S.C. 1087vv(a)(2)), by striking 
‘‘12571’’ and inserting ‘‘12511’’; 
(7) in section 480(c)(2) (20 U.S.C. 1087vv(c)(2))— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘the following’’ and inserting ‘‘benefits under the 
following provisions of law’’; and 
(B) by striking subparagraphs (A) through (J) and 
inserting the following: 
‘‘(A) Chapter 103 of title 10, United States Code (Senior 
Reserve Officers’ Training Corps). 
‘‘(B) Chapter 106A of title 10, United States Code (Edu-
cational Assistance for Persons Enlisting for Active Duty). 
‘‘(C) Chapter 1606 of title 10, United States Code (Selected 
Reserve Educational Assistance Program). 
‘‘(D) Chapter 1607 of title 10, United States Code (Edu-
cational Assistance Program for Reserve Component Members 
Supporting Contingency Operations and Certain Other Oper-
ations). 
‘‘(E) Chapter 30 of title 38, United States Code (All-Volun-
teer Force Educational Assistance Program, also known as the 
‘Montgomery GI Bill—active duty’). 
‘‘(F) Chapter 31 of title 38, United States Code (Training 
and Rehabilitation for Veterans with Service-Connected Disabil-
ities). 
‘‘(G) Chapter 32 of title 38, United States Code (Post- 
Vietnam Era Veterans’ Educational Assistance Program). 
‘‘(H) Chapter 33 of title 38, United States Code (Post- 
9/11 Educational Assistance). 
‘‘(I) Chapter 35 of title 38, United States Code (Survivors’ 
and Dependents’ Educational Assistance Program). 
‘‘(J) Section 903 of the Department of Defense Authorization 
Act, 1981 (10 U.S.C. 2141 note) (Educational Assistance Pilot 
Program). 
‘‘(K) Section 156(b) of the ‘Joint Resolution making further 
continuing appropriations and providing for productive employ-
ment for the fiscal year 1983, and for other purposes’ (42 
U.S.C. 402 note) (Restored Entitlement Program for Survivors, 
also known as ‘Quayle benefits’). 
‘‘(L) The provisions of chapter 3 of title 37, United States 
Code, related to subsistence allowances for members of the 
Reserve Officers Training Corps.’’; and
H. R. 1777—17 
(8) in section 480(j)(1) (20 U.S.C. 1087vv(j)(1)), by striking 
‘‘12571’’ and inserting ‘‘12511’’. 
(b) EFFECTIVE DATE.—The amendments made by— 
(1) paragraph (1) of subsection (a) shall take effect on 
July 1, 2009; and 
(2) paragraph (4) of such subsection shall be effective as 
if enacted as part of the amendments in section 602(a) of 
the College Cost Reduction and Access Act (Public Law 110– 
84), and shall take effect on July 1, 2009. 
(c) HIGHER EDUCATION OPPORTUNITY ACT.—Section 473(f) of 
the Higher Education Opportunity Act (Public Law 110–315) is 
amended by inserting ‘‘, except that the amendments made in 
subsection (e) shall take effect on July 1, 2009’’ before the period 
at the end. 
SEC. 407. GENERAL PROVISIONS OF TITLE IV. 
(a) DELAYED
IMPLEMENTATION
OF
EZ FAFSA.—Notwith-
standing any other provision of law, the Secretary of Education 
shall be required to carry out the requirements under the following 
provisions of section 483 of the Higher Education Act of 1965 
(20 U.S.C. 1090) only for academic year 2010–2011 and subsequent 
academic years: 
(1) In subsection (a) of such section— 
(A) subparagraphs (A)(i) and (B) of paragraph (2); 
(B) in paragraph (3)— 
(i) the second sentence of subparagraph (A); 
(ii) clauses (i) and (ii) of subparagraph (B); and 
(iii) subparagraph (C); 
(C) paragraph (4)(A)(iv); and 
(D) paragraph (5)(E). 
(2) Subsection (h) of such section. 
(b) OTHER AMENDMENTS.—Part G of title IV (20 U.S.C. 1088 
et seq.) is amended— 
(1) in the matter preceding paragraph (1) of section 481(c) 
(20 U.S.C. 1088(c)), by striking ‘‘or any State, or private, profit 
or nonprofit organization’’ and inserting ‘‘any State, or any 
private, for-profit or nonprofit organization,’’; 
(2) in section 482(b) (20 U.S.C. 1089(b)), by striking 
‘‘413D(e), 442(e), or 462(j)’’ and inserting ‘‘413D(d), 442(d), or 
462(i)’’; 
(3) in section 483 (20 U.S.C. 1090)— 
(A) in subsection (a)(3)(C), by inserting ‘‘that’’ after 
‘‘except’’; and 
(B) in subsection (e)(8)(A), by striking ‘‘identify’’ and 
inserting ‘‘determine’’; 
(4) in section 484 (20 U.S.C. 1091)— 
(A) in the matter preceding subparagraph (A) of sub-
section (a)(4), by striking ‘‘certification,,’’ and inserting ‘‘cer-
tification,’’; 
(B) in subsection (b)(1)(B)— 
(i) by striking ‘‘have (A)’’ and inserting ‘‘have (i)’’; 
and 
(ii) by striking ‘‘and (B)’’ and inserting ‘‘and (ii)’’; 
(C) in subsection (f)(1), by striking ‘‘part B’’ and all 
that follows through ‘‘part E’’ in each place that the phrase 
occurs and inserting ‘‘part B, part D, or part E’’; 
(D) in subsection (h)—
H. R. 1777—18 
(i) in paragraph (2), by striking ‘‘(h)(4)(A)(i)’’ and 
inserting ‘‘(g)(4)(A)(i)’’; and 
(ii) in paragraph (3), by striking ‘‘(h)(4)(B)(i)’’ and 
inserting ‘‘(g)(4)(B)(i)’’; and 
(E) in subsection (n), by striking ‘‘section 1113 of Public 
Law 97–252’’ and inserting ‘‘section 12(f) of the Military 
Selective Service Act (50 U.S.C. App. 462(f))’’; 
(5) in section 485 (20 U.S.C. 1092)— 
(A) in subsection (a)— 
(i) in paragraph (1)— 
(I) the matter preceding subparagraph (A), by 
striking ‘‘also referred to as the Family Edu-
cational Rights and Privacy Act of 1974’’ and 
inserting ‘‘commonly known as the ‘Family Edu-
cational Rights and Privacy Act of 1974’ ’’; and 
(II) in subparagraph (I), by striking ‘‘handi-
capped students’’ and inserting ‘‘students with 
disabilities’’; 
(ii) in paragraph (4)(B), by inserting ‘‘during 
which’’ after ‘‘time period’’; and 
(iii) in the matter preceding subclause (I) of para-
graph (7)(B)(iv), by inserting ‘‘education’’ after ‘‘higher’’; 
(B) in subsection (e)(3)(B), by inserting ‘‘during which’’ 
after ‘‘time period’’; 
(C) in subsection (f)— 
(i) in the matter preceding subparagraph (A) of 
paragraph (1), by inserting ‘‘of’’ after ‘‘foreign institu-
tion’’; and 
(ii) in paragraphs (3), (4)(A), (5), and (8)(A), by 
striking ‘‘under this title’’ each place it appears and 
inserting ‘‘under this title, other than a foreign institu-
tion of higher education,’’; 
(D) in subsection (g)(2), by striking ‘‘subparagraph (G)’’ 
and inserting ‘‘paragraph (1)(G)’’; 
(E) in subsection (i)— 
(i) in paragraph (2), by striking ‘‘eligible institution 
participating in any program under this title’’ and 
inserting ‘‘institution described in paragraph (1)’’; 
(ii) in paragraph (3), in the matter preceding 
subparagraph (A), by striking ‘‘eligible institution 
participating in any program under this title’’ and 
inserting ‘‘institution described in paragraph (1)’’; and 
(iii) in paragraph (5)(B), by striking ‘‘the Family 
Educational Rights and Privacy Act of 1974’’ and 
inserting ‘‘commonly known as the ‘Family Educational 
Rights and Privacy Act of 1974’ ’’; 
(F) in subsection (k)(2), by inserting ‘‘section’’ before 
‘‘484(r)(1)’’; and 
(G) in the matter preceding clause (i) of subsection 
(l)(1)(A), by striking ‘‘subparagraph (B)’’ and inserting 
‘‘paragraph (2)’’; 
(6) in section 485A (20 U.S.C. 1092a)— 
(A) in subsection (a)— 
(i) by striking ‘‘or defined in subpart I of part 
C of title VII of the Public Health Service Act’’ and 
inserting ‘‘or an eligible lender as defined in section
H. R. 1777—20 
(B) by adding at the end the following: 
‘‘(4) DETERMINATION
OF
SUCCESS.—For the purposes of 
paragraph (1), the Secretary shall make a determination of 
success regarding an institution’s participation as an experi-
mental site based on— 
‘‘(A) the ability of the experimental site to reduce 
administrative burdens to the institution, as documented 
in the Secretary’s biennial report under paragraph (2), 
without creating costs for the taxpayer; and 
‘‘(B) whether the experimental site has improved the 
delivery of services to, or otherwise benefitted, students.’’; 
(10) in section 489(a) (20 U.S.C. 1096(a))— 
(A) in the third sentence, by striking ‘‘has agreed to 
assign under section 463(a)(6)(B)’’ and inserting ‘‘has 
referred under section 463(a)(4)(B)’’; and 
(B) in the fourth sentence, by striking ‘‘484(h)’’ and 
inserting ‘‘484(g)’’; 
(11) in section 491(l)(2)(A) (20 U.S.C. 1098(l)(2)(A)), by 
inserting ‘‘the’’ after ‘‘enactment of’’; and 
(12) in section 492(a) (20 U.S.C. 1098a(a))— 
(A) in paragraph (1), by striking ‘‘regulations’’ and 
all that follows through ‘‘The’’ and inserting ‘‘regulations 
for this title. The’’; and 
(B) in paragraph (2), by striking ‘‘ISSUES’’ and all that 
follows through ‘‘provide’’ and inserting ‘‘ISSUES.—The Sec-
retary shall provide’’. 
SEC. 408. PROGRAM INTEGRITY. 
Part H of title IV (20 U.S.C. 1099a et seq.) is amended— 
(1) in section 496(a)(6)(G) (20 U.S.C. 1099b(a)(6)(G)), by 
striking the period at the end and inserting a semicolon; and 
(2) in section 498(c)(2) (20 U.S.C. 1099c(c)(2)), by striking 
‘‘for profit’’ and inserting ‘‘for-profit’’. 
SEC. 409. WAIVER OF MASTER CALENDAR AND NEGOTIATED RULE-
MAKING REQUIREMENTS. 
Sections 482 and 492 of the Higher Education Act of 1965 
(20 U.S.C. 1089, 1098a) shall not apply to the amendments made 
by this title, or to any regulations promulgated under those amend-
ments. 
TITLE V—DEVELOPING INSTITUTIONS 
SEC. 501. DEVELOPING INSTITUTIONS. 
Section 502(b)(2) (20 U.S.C. 1101a(b)(2)) is amended by striking 
‘‘which determination’’ and inserting ‘‘which the determination’’. 
TITLE VI—INTERNATIONAL EDUCATION 
PROGRAMS 
SEC. 601. INTERNATIONAL EDUCATION PROGRAMS. 
(a) HIGHER EDUCATION ACT OF 1965.—Title VI (20 U.S.C. 1121 
et seq.) is amended— 
(1) in section 604(a) (20 U.S.C. 1124(a))—
H. R. 1777—21 
(A) in the matter preceding subparagraph (A) of para-
graph (2), by inserting ‘‘the’’ before ‘‘Federal’’; and 
(B) in paragraph (7)(D), by striking ‘‘institution, com-
bination’’ and inserting ‘‘applicant, consortium,’’; and 
(2) in section 622(a) (20 U.S.C. 1131–1(a)), by inserting 
a period after ‘‘title’’. 
(b) HIGHER EDUCATION OPPORTUNITY ACT.—The matter pre-
ceding paragraph (1) of section 621 of the Higher Education Oppor-
tunity Act (Public Law 110–315) is amended by striking ‘‘Section 
631 (20 U.S.C. 1132)’’ and inserting ‘‘Section 631(a) (20 U.S.C. 
1132(a))’’. 
TITLE VII—GRADUATE AND 
POSTSECONDARY IMPROVEMENT 
SEC. 701. GRADUATE AND POSTSECONDARY IMPROVEMENT PRO-
GRAMS. 
Title VII (20 U.S.C. 1133 et seq.) is amended— 
(1) in the matter preceding paragraph (1) of section 721(d) 
(20 U.S.C. 1136(d)), by striking ‘‘services through’’ and all that 
follows through ‘‘resource centers’’ and inserting ‘‘services 
through pre-college programs, undergraduate prelaw informa-
tion resource centers’’; 
(2) in section 723(b)(1)(P) (20 U.S.C. 1136a(b)(1)(P)), by 
striking ‘‘Sate’’ and inserting ‘‘State’’; 
(3) in section 744(c)(6)(C) (20 U.S.C. 1138c(c)(6)(C)), by 
inserting ‘‘of the National Academies’’ after ‘‘Institute of Medi-
cine’’; 
(4) in section 760 (20 U.S.C. 1140), by striking paragraph 
(1) and inserting the following: 
‘‘(1) COMPREHENSIVE TRANSITION AND POSTSECONDARY PRO-
GRAM
FOR
STUDENTS
WITH
INTELLECTUAL
DISABILITIES.—The 
term ‘comprehensive transition and postsecondary program for 
students with intellectual disabilities’ means a degree, certifi-
cate, or nondegree program that meets each of the following: 
‘‘(A) Is offered by an institution of higher education. 
‘‘(B) Is designed to support students with intellectual 
disabilities who are seeking to continue academic, career 
and technical, and independent living instruction at an 
institution of higher education in order to prepare for gain-
ful employment. 
‘‘(C) Includes an advising and curriculum structure. 
‘‘(D) Requires students with intellectual disabilities to 
participate on not less than a half-time basis as determined 
by the institution, with such participation focusing on aca-
demic components, and occurring through 1 or more of 
the following activities: 
‘‘(i) Regular enrollment in credit-bearing courses 
with nondisabled students offered by the institution. 
‘‘(ii) Auditing or participating in courses with non-
disabled students offered by the institution for which 
the student does not receive regular academic credit. 
‘‘(iii) Enrollment in noncredit-bearing, nondegree 
courses with nondisabled students. 
‘‘(iv) Participation in internships or work-based 
training in settings with nondisabled individuals.
H. R. 1777—22 
‘‘(E) Requires students with intellectual disabilities to 
be socially and academically integrated with non-disabled 
students to the maximum extent possible.’’; 
(5) in section 772 (20 U.S.C. 1140l)— 
(A) in subsection (a)(2)(A), by striking ‘‘with in’’ and 
inserting ‘‘with’’; and 
(B) in the matter preceding subclause (I) of subsection 
(b)(1)(C)(ii), by striking ‘‘subparagraph (C)’’ and inserting 
‘‘clause (i)’’; 
(6) in section 781 (20 U.S.C. 1141)— 
(A) in subsection (c)(1), by striking ‘‘Service’’ each place 
the term appears and inserting ‘‘Services’’; 
(B) in the matter preceding paragraph (1) of subsection 
(e)— 
(i) by striking ‘‘(as defined’’ and all that follows 
through ‘‘this Act)’’ and inserting ‘‘(as described in sec-
tion 435(p))’’; and 
(ii) by striking ‘‘435(j)’’ and inserting ‘‘428(b)’’; 
(C) in subsection (g)(2), by striking ‘‘Service’’ and 
inserting ‘‘Services’’; and 
(D) in subsection (i)— 
(i) in paragraph (1)(D), by striking ‘‘consortia’’ and 
inserting ‘‘consortium’’; and 
(ii) in paragraph (2)— 
(I) in the paragraph heading, by striking ‘‘CON-
SORTIA’’ and inserting ‘‘CONSORTIUM’’; and 
(II) by striking ‘‘consortia’’ each place the term 
appears and inserting ‘‘consortium’’. 
TITLE VIII—ADDITIONAL PROGRAMS 
SEC. 801. ADDITIONAL PROGRAMS. 
Title VIII (20 U.S.C. 1161a et seq.) is amended— 
(1) in section 802(d)(2)(D) (20 U.S.C. 1161b(d)(2)(D)), by 
striking ‘‘regulation’’ and inserting ‘‘regulations’’; 
(2) in section 804(d) (20 U.S.C. 1161d(d))— 
(A) in the heading, by striking ‘‘DEFINITION’’ and 
inserting ‘‘DEFINITIONS’’; and 
(B) by striking paragraph (2) and inserting the fol-
lowing: 
‘‘(2) PUBLIC HEALTH SERVICE ACT.—The terms ‘accredited’ 
and ‘school of nursing’ have the meanings given those terms 
in section 801 of the Public Health Service Act (42 U.S.C. 
296).’’; 
(3) in section 808(a)(1) (20 U.S.C. 1161h(a)(1)), by striking 
‘‘the Family Education Rights and Privacy Act of 1974’’ and 
inserting ‘‘section 444 of the General Education Provisions Act 
(commonly known as the ‘Family Educational Rights and Pri-
vacy Act of 1974’)’’; 
(4) in section 819(b)(3) (20 U.S.C. 1161j(b)(3)), by inserting 
a period after ‘‘101(a)’’; 
(5) in section 820 (20 U.S.C. 1161k)— 
(A) in subsection (d)(5), by inserting ‘‘the’’ before 
‘‘grant’’; 
(B) in subsection (f)(2), by striking ‘‘subpart’’ each place 
the term appears and inserting ‘‘section’’; and
H. R. 1777—23 
(C) in subsection (h), by striking ‘‘use’’ and inserting 
‘‘used’’; 
(6) in section 821 (20 U.S.C. 1161l)— 
(A) in subsection (a)(1), by striking ‘‘subsection (g)’’ 
and inserting ‘‘subsection (f)’’; and 
(B) in subsection (c)(1)(B), by striking ‘‘within’’ and 
inserting ‘‘in’’; 
(7) in section 824(f)(3) (20 U.S.C. 1161l–3(f)(3))— 
(A) in subparagraph (A), by inserting ‘‘a’’ after ‘‘submit-
ting’’; and 
(B) in subparagraph (C), by striking ‘‘pursing’’ and 
inserting ‘‘pursuing’’; 
(8) in section 825(a) (20 U.S.C. 1161l–4(a)), by striking 
‘‘the Family Educational Rights and Privacy Act of 1974’’ and 
inserting ‘‘commonly known as the ‘Family Educational Rights 
and Privacy Act of 1974’ ’’; 
(9) in section 826(3) (20 U.S.C. 1161l–5(3)), by striking 
‘‘the Family Educational Rights and Privacy Act of 1974’’ and 
inserting ‘‘commonly known as the ‘Family Educational Rights 
and Privacy Act of 1974’ ’’; 
(10) in section 830(a)(1)(B) (20 U.S.C. 1161m(a)(1)(B)), by 
striking ‘‘of for’’ and inserting ‘‘of’’; 
(11) in section 833(e)(1) (20 U.S.C. 1161n–2(e)(1))— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘because of’’ and inserting ‘‘based on’’; and 
(B) in subparagraph (D), by striking ‘‘purposes of this 
section’’ and inserting ‘‘purpose of this part’’; 
(12) in section 841(c)(1) (20 U.S.C. 1161o(c)(1)), by striking 
‘‘486A(d)’’ and inserting ‘‘486A(b)(1)’’; 
(13) in section 851(j) (20 U.S.C. 1161p(j)), by inserting 
‘‘to be appropriated’’ after ‘‘authorized’’; and 
(14) in section 894(b)(2) (20 U.S.C. 1161y(b)(2)), by striking 
‘‘the Family Educational Rights and Privacy Act of 1974’’ and 
inserting ‘‘commonly known as the ‘Family Educational Rights 
and Privacy Act of 1974’ ’’. 
SEC. 802. AMENDMENTS TO OTHER HIGHER EDUCATION ACTS. 
(a) HIGHER EDUCATION AMENDMENTS OF 1998.— 
(1) INCARCERATED
INDIVIDUALS.—Section 821(h) of the 
Higher Education Amendments of 1998 (20 U.S.C. 1151(h)) 
is amended to read as follows: 
‘‘(h) ALLOCATION OF FUNDS.— 
‘‘(1) FISCAL YEAR 2009.—From the funds appropriated pursu-
ant to subsection (i) for fiscal year 2009, the Secretary shall 
allot to each State an amount that bears the same relationship 
to such funds as the total number of incarcerated individuals 
described in paragraphs (1) and (2) of subsection (e) in the 
State bears to the total number of such individuals in all 
States. 
‘‘(2) FUTURE FISCAL YEARS.—From the funds appropriated 
pursuant to subsection (i) for each fiscal year after fiscal year 
2009, the Secretary shall allot to each State an amount that 
bears the same relationship to such funds as the total number 
of students eligible under subsection (e) in such State bears 
to the total number of such students in all States.’’.
H. R. 1777—24 
(2) UNDERGROUND RAILROAD.—Section 841(c) of the Higher 
Education Amendments of 1998 (20 U.S.C. 1153(c)) is amended 
by inserting ‘‘this section’’ after ‘‘to carry out’’. 
(b) EDUCATION OF THE DEAF ACT OF 1986.—Section 203(b)(2) 
of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(2)) 
is amended by striking ‘‘and subsections (b) and (c) of section 
209.’’ and inserting ‘‘and subsections (a), (b), and (c) of section 
209.’’. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.