228
for determining the student’s financial need for the 
assistance in lieu of a determination under part F; 
‘‘(2) a description of the types of jobs in which 
students in the program will be employed, at what 
rates of compensation, and the number of hours that 
a student may work; 
‘‘(3) the maximum dollar amount of assistance 
that the institution may award to a student in the 
program; and 
‘‘(4) a requirement that the Federal share of 
the compensation of a student in the program shall 
not exceed 75 percent. 
‘‘(d) DEFINITIONS.—For the purpose of this section: 
‘‘(1) COMPREHENSIVE
POSTSECONDARY
PRO-
GRAM
FOR
STUDENTS
WITH
MENTAL
RETARDA-
TION.—The term ‘comprehensive postsecondary pro-
gram for students with mental retardation’ means a 
degree, certificate, or nondegree program offered by 
an institution of higher education that—
‘‘(A) is designed for students with mental 
retardation who seek to continue academic, vo-
cational, and independent living instruction at 
the institution to prepare for gainful employ-
ment;
229
‘‘(B) includes an advising and curriculum 
structure; and 
‘‘(C) includes enrollment by the student 
(through regular enrollment, auditing courses, 
participation in internships, or enrollment in 
noncredit, nondegree courses) in the equivalent 
of not less than half-time enrollment, as defined 
by the institution. 
‘‘(2) STUDENT WITH MENTAL RETARDATION.—
The term ‘student with mental retardation’ means a 
student with significantly subaverage general intel-
lectual functioning, existing concurrently with defi-
cits in adaptive behavior and manifested during the 
developmental period, that adversely affects a stu-
dent’s educational performance. 
‘‘(3) SATISFACTORY
PROGRESS.—A student 
with mental retardation enrolled in a comprehensive 
postsecondary program for students with mental re-
tardation is maintaining satisfactory progress if—
‘‘(A) the institution at which that student 
is enrolled reviews the progress of the student 
at the end of each academic year, or its equiva-
lent, as determined by the institution; and 
‘‘(B) the institution determines that the 
student is meeting or exceeding the program re-
230
quirements and adequately progressing toward 
program completion.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall be effective for academic year 2007–
2008 and succeeding academic years. 
PART D—FEDERAL DIRECT LOAN PROGRAM 
SEC. 451. INCOME CONTINGENT REPAYMENT. 
Section 455(e)(2) (20 U.S.C. 1087e(e)(2)) is amend-
ed by striking ‘‘and files a Federal income tax return 
jointly with the borrower’s spouse’’. 
PART E—FEDERAL PERKINS LOAN PROGRAM 
SEC. 461. REAUTHORIZATION OF PROGRAM. 
(a) PROGRAM AUTHORIZATION.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
Section 461(b) (20 U.S.C. 1087aa(b)) is amended—
(A) in paragraph (1)—
(i) by striking ‘‘1999’’ and inserting 
‘‘2007’’; and 
(ii) by striking ‘‘4 succeeding’’ and in-
serting ‘‘5 succeeding’’; and 
(B) in paragraph (2), by striking ‘‘2003’’ 
each place it appears and inserting ‘‘2013’’. 
(2) FEDERAL CAPITAL CONTRIBUTION RECOV-
ERY.—Section 466 (20 U.S.C. 1087ff) is amended—
231
(A) by striking ‘‘2004’’ each place it ap-
pears in subsections (a) and (c) and inserting 
‘‘2013’’; 
(B) by striking ‘‘2003’’ each place it ap-
pears in subsections (a) and (b), and inserting 
‘‘2012’’; and 
(C) by striking ‘‘2012’’ in subsection (b) 
and inserting ‘‘2013’’. 
(b) BOOKS
AND SUPPLIES.—Section 462(c)(4)(D) 
(20 U.S.C. 1087bb(c)(4)(D)) is amended by striking 
‘‘$450’’ and inserting ‘‘$600’’. 
SEC. 462. LOAN TERMS AND CONDITIONS. 
(a) LOAN
LIMITS.—Section 464(a) (20 U.S.C. 
1087dd(a)) is amended—
(1) in paragraph (2)(A)—
(A) by striking ‘‘$4,000’’ in clause (i) and 
inserting ‘‘$5,500’’; and 
(B) by striking ‘‘$6,000’’ in clause (ii) and 
inserting ‘‘$8,000’’; and 
(2) in paragraph (2)(B)—
(A) by striking ‘‘$40,000’’ in clause (i) and 
inserting ‘‘$60,000’’; 
(B) by striking ‘‘$20,000’’ in clause (ii) 
and inserting ‘‘$27,500’’; and