I 
110TH CONGRESS 
1ST SESSION H. R. 2669 
To provide for reconciliation pursuant to section 601 of the concurrent 
resolution on the budget for fiscal year 2008. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2007 
Mr. GEORGE MILLER of California (for himself and Mr. HINOJOSA) intro-
duced the following bill; which was referred to the Committee on Edu-
cation and Labor 
A BILL 
To provide for reconciliation pursuant to section 601 of 
the concurrent resolution on the budget for fiscal year 2008. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be referred to as 
the ‘‘College Cost Reduction Act of 2007’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
Sec. 2. References; effective date. 
TITLE I—INVESTING IN STUDENT AID 
PART A—INCREASING THE PURCHASING POWER OF PELL GRANTS 
Sec. 101. Mandatory Pell Grant Increases. 
Sec. 102. Support for working students.
Sec. 103. Simplified needs test and automatic zero improvements. 
Sec. 104. Definitions. 
PART B—MAKING STUDENT LOANS MORE AFFORDABLE 
Sec. 111. Interest rate reductions. 
Sec. 112. Increases in loan limits. 
Sec. 113. Reduction of lender special allowance payments. 
Sec. 114. Elimination of exceptional performer status for lenders. 
Sec. 115. Reduction of lender insurance percentage. 
Sec. 116. Guaranty agency collection retention. 
Sec. 117. Unit costs for account maintenance fees. 
Sec. 118. Increased loan fees from lenders. 
Sec. 119. Student loan information. 
PART C—REWARDING SERVICE IN REPAYMENT 
Sec. 141. Loan forgiveness for service in areas of national need. 
‘‘Sec. 428K. Loan forgiveness for service in areas of national need. 
Sec. 142. Income contingent repayment for public sector employees. 
Sec. 143. Income-based repayment. 
‘‘Sec. 493C. Income-based repayment. 
Sec. 144. Definition of economic hardship. 
Sec. 145. Deferrals. 
Sec. 146. Maximum repayment period. 
TITLE II—REDUCING THE COST OF COLLEGE 
Sec. 201. State commitment to affordable college education. 
‘‘Sec. 132. State commitment to affordable college education. 
Sec. 202. Consumer information and public accountability in higher education. 
‘‘Sec. 131. Consumer information and public accountability in higher edu-
cation. 
Sec. 203. Incentives and rewards for low tuition. 
‘‘Sec. 401B. Incentives and rewards for low tuition. 
Sec. 204. Cooperative education rewards for institutions that restrain tuition 
increases. 
‘‘TITLE VIII—COOPERATIVE EDUCATION REWARDS FOR 
INSTITUTIONS THAT RESTRAIN TUITION INCREASES 
‘‘Sec. 801. Eligible institutions. 
‘‘Sec. 802. Authorization of appropriations; reservations. 
‘‘Sec. 803. Grants for cooperative education. 
‘‘Sec. 804. Demonstration and innovation projects; training and resource 
centers; and research. 
TITLE III—ENSURING A HIGHLY QUALIFIED TEACHER IN EVERY 
CLASSROOM 
PART A—TEACH GRANTS 
Sec. 301. TEACH Grants. 
‘‘SUBPART 9—TEACH GRANTS 
‘‘Sec. 420L. Program established. 
‘‘Sec. 420M. Eligibility; applications; selection.
‘‘Sec. 420N. Definitions. 
‘‘Sec. 420O. Program period and funding. 
PART B—CENTERS OF EXCELLENCE 
Sec. 311. Centers of excellence. 
‘‘PART C—CENTERS OF EXCELLENCE 
‘‘Sec. 231. Definitions. 
‘‘Sec. 232. Centers of excellence. 
‘‘Sec. 233. Appropriations. 
TITLE IV—COLLEGE ACCESS CHALLENGE GRANT PROGRAM 
Sec. 401. College Access Challenge grants. 
SEC. 2. REFERENCES; EFFECTIVE DATE. 
(a) 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 be consid-
ered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 
(b) EFFECTIVE DATE.—Except as otherwise ex-
pressly provided therein, the amendments made by this 
Act shall be effective on October 1, 2007. 
TITLE I—INVESTING IN 
STUDENT AID 
PART A—INCREASING THE PURCHASING POWER 
OF PELL GRANTS 
SEC. 101. MANDATORY PELL GRANT INCREASES. 
(a) EXTENSION OF AUTHORITY.—Section 401(a) (20 
U.S.C. 1070a(a)) is amended by striking ‘‘fiscal year 
2004’’ and inserting ‘‘fiscal year 2013’’.
(b) FUNDING FOR INCREASES.—Section 401(b) (20 
U.S.C. 1070a(b)) is amended by adding at the end the 
following new paragraph: 
‘‘(9) ADDITIONAL FUNDS.— 
‘‘(A) IN GENERAL.—There are authorized 
to be appropriated, and there are appropriated, 
to carry out subparagraph (B) of this para-
graph (in addition to any other amounts appro-
priated to carry out this section and out of any 
money in the Treasury not otherwise appro-
priated) the following amounts: 
‘‘(i) $420,000,000 for fiscal year 
2008; 
‘‘(ii) $870,000,000 for fiscal year 
2009; 
‘‘(iii) $1,330,000,000 for fiscal year 
2010; 
‘‘(iv) $1,820,000,000 for fiscal year 
2011; 
‘‘(v) $2,340,000,000 for fiscal year 
2012; 
‘‘(vi) $2,390,000,000 for fiscal year 
2013; 
‘‘(vii) $2,430,000,000 for fiscal year 
2014;
‘‘(viii) $2,470,000,000 for fiscal year 
2015; 
‘‘(ix) $2,500,000,000 for fiscal year 
2016; and 
‘‘(x) $2,520,000,000 for fiscal year 
2017. 
‘‘(B) 
INCREASE
IN
FEDERAL
PELL 
GRANTS.—The amounts made available pursu-
ant to subparagraph (A) of this paragraph shall 
be used to increase the amount of the maximum 
Pell Grant for which a student shall be eligible 
during an award year, as specified in the last 
enacted appropriation Act applicable to that 
award year, by— 
‘‘(i) $100 for award year 2008–2009; 
‘‘(ii) $200 for award year 2009–2010; 
‘‘(iii) $300 for award year 2010– 
2011; 
‘‘(iv) $400 for award year 2011–2012; 
and 
‘‘(v) $500 for award year 2012–2013 
and each subsequent award year. 
‘‘(C) USE
OF
FISCAL
YEAR
FUNDS
FOR 
AWARD YEARS.—The amounts made available 
by subparagraph (A) for any fiscal year shall be