165 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘4’’ and inserting 
‘‘5’’; 
(ii) by striking subparagraph (A); and 
(iii) by redesignating subparagraphs 
(B) and (C) as subparagraphs (A) and (B), 
respectively; and 
(B) by striking paragraph (3) and inserting 
the following: 
‘‘(3) MINIMUM GRANTS.—Unless the institution 
or agency requests a smaller amount, an individual 
grant authorized under this chapter shall be awarded 
in an amount that is not less than $200,000, except 
that an individual grant authorized under section 
402G shall be awarded in an amount that is not less 
than $170,000.’’; 
(2) in subsection (c)— 
(A) in paragraph (2), by striking ‘‘service 
delivery’’ and inserting ‘‘high quality service de-
livery, as determined under subsection (f),’’; 
(B) in paragraph (3)(B), by striking ‘‘is 
not required to’’ and inserting ‘‘shall not’’; and 
(C) in paragraph (5), by striking ‘‘cam-
puses’’ and inserting ‘‘different campuses’’;
166 
(3) in subsection (e), by striking ‘‘(g)(2)’’ each 
place the term occurs and inserting ‘‘(h)(4)’’; 
(4) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; 
(5) by inserting after subsection (e) the following: 
‘‘(f) OUTCOME CRITERIA.— 
‘‘(1) USE FOR PRIOR EXPERIENCE DETERMINA-
TION.—The Secretary shall use the outcome criteria 
described in paragraphs (2) and (3) to evaluate the 
programs provided by a recipient of a grant under 
this chapter, and the Secretary shall determine an eli-
gible entity’s prior experience of high quality service 
delivery, as required under subsection (c)(2), based on 
the outcome criteria. 
‘‘(2) DISAGGREGATION
OF
RELEVANT
DATA.— 
The outcome criteria under this subsection shall be 
disaggregated by low-income students, first generation 
college students, and individuals with disabilities, in 
the schools and institutions of higher education served 
by the program to be evaluated. 
‘‘(3) CONTENTS
OF
OUTCOME
CRITERIA.—The 
outcome criteria under this subsection shall measure, 
annually and for longer periods, the quality and ef-
fectiveness of programs authorized under this chapter 
and shall include the following:
167 
‘‘(A) For programs authorized under section 
402B, the extent to which the eligible entity met 
or exceeded the entity’s objectives established in 
the entity’s application for such program regard-
ing— 
‘‘(i) the delivery of service to a total 
number of students served by the program; 
‘‘(ii) the continued secondary school 
enrollment of such students; 
‘‘(iii) the graduation of such students 
from secondary school; 
‘‘(iv) the enrollment of such students in 
an institution of higher education; and 
‘‘(v) to the extent practicable, the post-
secondary education completion of such stu-
dents. 
‘‘(B) For programs authorized under section 
402C, the extent to which the eligible entity met 
or exceeded the entity’s objectives for such pro-
gram regarding— 
‘‘(i) the delivery of service to a total 
number of students served by the program, 
as agreed upon by the entity and the Sec-
retary for the period;
168 
‘‘(ii) such students’ school performance, 
as measured by the grade point average, or 
its equivalent; 
‘‘(iii) such students’ academic perform-
ance, as measured by standardized tests, in-
cluding tests required by the students’ State; 
‘‘(iv) the retention in, and graduation 
from, secondary school of such students; and 
‘‘(v) the enrollment of such students in 
an institution of higher education. 
‘‘(C) For programs authorized under section 
402D— 
‘‘(i) the extent to which the eligible en-
tity met or exceeded the entity’s objectives 
regarding the retention in postsecondary 
education of the students served by the pro-
gram; 
‘‘(ii)(I) in the case of an entity that is 
an institution of higher education offering a 
baccalaureate degree, the extent to which the 
entity met or exceeded the entity’s objectives 
regarding such students’ completion of the 
degree programs in which such students 
were enrolled; or
169 
‘‘(II) in the case of an entity that is an 
institution of higher education that does not 
offer a baccalaureate degree, the extent to 
which the entity met or exceeded the entity’s 
objectives regarding— 
‘‘(aa) the completion of a degree 
or certificate by such students; and 
‘‘(bb) the transfer of such students 
to institutions of higher education that 
offer baccalaureate degrees; 
‘‘(iii) the extent to which the entity 
met or exceeded the entity’s objectives re-
garding the delivery of service to a total 
number of students, as agreed upon by the 
entity and the Secretary for the period; and 
‘‘(iv) the extent to which the entity met 
or exceeded the entity’s objectives regarding 
such students remaining in good academic 
standing. 
‘‘(D) For programs authorized under sec-
tion 402E, the extent to which the entity met or 
exceeded the entity’s objectives for such program 
regarding—
170 
‘‘(i) the delivery of service to a total 
number of students, as agreed upon by the 
entity and the Secretary for the period; 
‘‘(ii) the provision of appropriate 
scholarly and research activities for the stu-
dents served by the program; 
‘‘(iii) the acceptance and enrollment of 
such students in graduate programs; and 
‘‘(iv) the continued enrollment of such 
students in graduate study and the attain-
ment of doctoral degrees by former program 
participants. 
‘‘(E) For programs authorized under section 
402F, the extent to which the entity met or ex-
ceeded the entity’s objectives for such program re-
garding— 
‘‘(i) the enrollment of students without 
a secondary school diploma or its recognized 
equivalent, who were served by the program, 
in programs leading to such diploma or 
equivalent; 
‘‘(ii) the enrollment of secondary school 
graduates who were served by the program 
in programs of postsecondary education;
171 
‘‘(iii) the delivery of service to a total 
number of students, as agreed upon by the 
entity and the Secretary for the period; and 
‘‘(iv) the provision of assistance to stu-
dents served by the program in completing 
financial aid applications and college ad-
mission applications. 
‘‘(4) MEASUREMENT OF PROGRESS.—In order to 
determine the extent to which an outcome criterion 
described in paragraphs (2) or (3) is met or exceeded, 
an eligible entity receiving assistance under this 
chapter shall compare the eligible entity’s target for 
the criterion, as established in the eligible entity’s ap-
plication, with the results for the criterion, measured 
as of the last day of the applicable time period for the 
determination.’’; 
(6) in subsection (g) (as redesignated by para-
graph (4))— 
(A) in the first sentence, by striking 
‘‘$700,000,000 for fiscal year 1999’’ and all that 
follows through the period and inserting ‘‘such 
sums as may be necessary for fiscal year 2008 
and each of the 5 succeeding fiscal years.’’; and 
(B) by striking the fourth sentence; and
172 
(7) in subsection (h) (as redesignated by para-
graph (4))— 
(A) 
by 
redesignating 
paragraphs 
(1) 
through (4) as paragraphs (3) through (6), re-
spectively; 
(B) by inserting before paragraph (3) (as 
redesignated by subparagraph (A)) the following: 
‘‘(1) DIFFERENT CAMPUS.—The term ‘different 
campus’ means a site of an institution of higher edu-
cation that— 
‘‘(A) is geographically apart from the main 
campus of the institution; 
‘‘(B) is permanent in nature; and 
‘‘(C) offers courses in educational programs 
leading to a degree, certificate, or other recog-
nized educational credential. 
‘‘(2) DIFFERENT POPULATION.—The term ‘dif-
ferent population’ means a group of individuals, with 
respect to whom an eligible entity desires to serve 
through an application for a grant under this chap-
ter, that— 
‘‘(A) is separate and distinct from any 
other population that the entity has applied for 
a grant under this chapter to serve; or
173 
‘‘(B) while sharing some of the same needs 
as another population that the eligible entity has 
applied for a grant under this chapter to serve, 
has distinct needs for specialized services.’’; 
(C) in paragraph (5) (as redesignated by 
subparagraph (A))— 
(i) in subparagraph (A), by striking 
‘‘or’’ after the semicolon; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; or’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) was a member of a reserve component 
of the Armed Forces called to active duty for a 
period of more than 180 days.’’; and 
(D) in paragraph (6), by striking ‘‘sub-
paragraph (A) or (B) of paragraph (3)’’ and in-
serting ‘‘subparagraph (A), (B), or (C) of para-
graph (5)’’. 
(b) TALENT
SEARCH.—Section 402B (20 U.S.C. 
1070a–12) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘to iden-
tify qualified youths with potential for education
174 
at the postsecondary level and to encourage such 
youths’’ and inserting ‘‘to encourage eligible 
youths’’; 
(B) in paragraph (2), by inserting ‘‘, and 
facilitate the application for,’’ after ‘‘the avail-
ability of’’; and 
(C) in paragraph (3), by striking ‘‘, but 
who have the ability to complete such programs, 
to reenter’’ and inserting ‘‘to enter or reenter, 
and complete’’; 
(2) by redesignating subsection (c) as subsection 
(d); 
(3) by striking subsection (b) and inserting the 
following: 
‘‘(b) REQUIRED
SERVICES.—Any project assisted 
under this section shall provide— 
‘‘(1) academic tutoring, or connections to high 
quality academic tutoring services, to enable students 
to complete secondary or postsecondary courses, which 
may include instruction in reading, writing, study 
skills, mathematics, science, and other subjects; 
‘‘(2) advice and assistance in secondary course 
selection and, if applicable, initial postsecondary 
course selection;
175 
‘‘(3) assistance in preparing for college entrance 
examinations and completing college admission appli-
cations; 
‘‘(4)(A) information on both the full range of 
Federal student financial aid programs (including 
Federal Pell Grant awards and loan forgiveness) and 
resources for locating public and private scholarships; 
and 
‘‘(B) assistance in completing financial aid ap-
plications, including the Free Application for Federal 
Student Aid described in section 483(a); 
‘‘(5) guidance on and assistance in— 
‘‘(A) secondary school reentry; 
‘‘(B) alternative education programs for sec-
ondary school dropouts that lead to the receipt of 
a regular secondary school diploma; 
‘‘(C) entry into general educational develop-
ment (GED) programs; or 
‘‘(D) postsecondary education; and 
‘‘(6) education or counseling services designed to 
improve the financial literacy and economic literacy 
of students or the students’ parents, including finan-
cial planning for postsecondary education. 
‘‘(c) PERMISSIBLE SERVICES.—Any project assisted 
under this section may provide services such as—
176 
‘‘(1) personal and career counseling or activities; 
‘‘(2) information and activities designed to ac-
quaint youths with the range of career options avail-
able to the youths; 
‘‘(3) exposure to the campuses of institutions of 
higher education, as well as cultural events, academic 
programs, and other sites or activities not usually 
available to disadvantaged youth; 
‘‘(4) workshops and counseling for families of 
students served; 
‘‘(5) mentoring programs involving elementary 
or secondary school teachers or counselors, faculty 
members at institutions of higher education, students, 
or any combination of such persons; and 
‘‘(6) programs and activities as described in sub-
section (b) or paragraphs (1) through (5) of this sub-
section that are specially designed for students who 
are limited English proficient, students with disabil-
ities, students who are homeless children and youths 
(as such term is defined in section 725 of the McKin-
ney-Vento Homeless Assistance Act (42 U.S.C. 
11434a)), or students who are in foster care or are 
aging out of the foster care system.’’; and 
(4) in the matter preceding paragraph (1) of 
subsection (d) (as redesignated by paragraph (2)), by
177 
striking ‘‘talent search projects under this chapter’’ 
and inserting ‘‘projects under this section’’. 
(c) UPWARD
BOUND.—Section 402C (20 U.S.C. 
1070a–13) is amended— 
(1) by striking subsection (b) and inserting the 
following: 
‘‘(b) REQUIRED
SERVICES.—Any project assisted 
under this section shall provide— 
‘‘(1) academic tutoring to enable students to 
complete secondary or postsecondary courses, which 
may include instruction in reading, writing, study 
skills, mathematics, science, and other subjects; 
‘‘(2) advice and assistance in secondary and 
postsecondary course selection; 
‘‘(3) assistance in preparing for college entrance 
examinations and completing college admission appli-
cations; 
‘‘(4)(A) information on both the full range of 
Federal student financial aid programs (including 
Federal Pell Grant awards and loan forgiveness) and 
resources for locating public and private scholarships; 
and 
‘‘(B) assistance in completing financial aid ap-
plications, including the Free Application for Federal 
Student Aid described in section 483(a);
178 
‘‘(5) guidance on and assistance in— 
‘‘(A) secondary school reentry; 
‘‘(B) alternative education programs for sec-
ondary school dropouts that lead to the receipt of 
a regular secondary school diploma; 
‘‘(C) entry into general educational develop-
ment (GED) programs; or 
‘‘(D) postsecondary education; and 
‘‘(6) education or counseling services designed to 
improve the financial literacy and economic literacy 
of students or the students’ parents, including finan-
cial planning for postsecondary education.’’; 
(2) in subsection (c)— 
(A) in the subsection heading, by striking 
‘‘REQUIRED SERVICES’’ and inserting ‘‘ADDI-
TIONAL REQUIRED SERVICES
FOR MULTIPLE- 
YEAR GRANT RECIPIENTS’’; and 
(B) by striking ‘‘upward bound project as-
sisted under this chapter’’ and inserting ‘‘project 
assisted under this section’’; 
(3) by redesignating subsections (d) and (e) as 
subsections (f) and (g), respectively; 
(4) by inserting after subsection (c) the fol-
lowing:
179 
‘‘(d) PERMISSIBLE SERVICES.—Any project assisted 
under this section may provide such services as— 
‘‘(1) exposure to cultural events, academic pro-
grams, and other activities not usually available to 
disadvantaged youth; 
‘‘(2) information, activities and instruction de-
signed to acquaint youths participating in the project 
with the range of career options available to the 
youths; 
‘‘(3) on-campus residential programs; 
‘‘(4) mentoring programs involving elementary 
school or secondary school teachers or counselors, fac-
ulty members at institutions of higher education, stu-
dents, or any combination of such persons; 
‘‘(5) work-study positions where youth partici-
pating in the project are exposed to careers requiring 
a postsecondary degree; 
‘‘(6) special services to enable veterans to make 
the transition to postsecondary education; and 
‘‘(7) programs and activities as described in sub-
section (b), subsection (c), or paragraphs (1) through 
(6) of this subsection that are specially designed for 
students who are limited English proficient, students 
with disabilities, students who are homeless children 
and youths (as such term is defined in section 725 of
180 
the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11434a)), or students who are in foster care or 
are aging out of the foster care system. 
‘‘(e) PRIORITY.—In providing assistance under this 
section the Secretary— 
‘‘(1) shall give priority to projects assisted under 
this section that select not less than 30 percent of all 
first-time participants in the projects from students 
who have a high academic risk for failure; and 
‘‘(2) shall not deny participation in a project as-
sisted under this section to a student because the stu-
dent will enter the project after the 9th grade.’’; 
(5) in the matter preceding paragraph (1) of 
subsection (f) (as redesignated by paragraph (3)), by 
striking ‘‘upward bound projects under this chapter’’ 
and inserting ‘‘projects under this section’’; and 
(6) in subsection (g) (as redesignated by para-
graph (3))— 
(A) by striking ‘‘during June, July, and 
August’’ each place the term occurs and inserting 
‘‘during the summer school recess, for a period 
not to exceed 3 months’’; and 
(B) by striking ‘‘(b)(10)’’ and inserting 
‘‘(d)(5)’’. 
(7) by adding at the end the following:
183 
(3) by striking subsection (b) and inserting the 
following: 
‘‘(b) REQUIRED SERVICES.—A project assisted under 
this section shall provide— 
‘‘(1) academic tutoring to enable students to 
complete postsecondary courses, which may include 
instruction in reading, writing, study skills, mathe-
matics, science, and other subjects; 
‘‘(2) advice and assistance in postsecondary 
course selection; 
‘‘(3)(A) information on both the full range of 
Federal student financial aid programs (including 
Federal Pell Grant awards and loan forgiveness) and 
resources for locating public and private scholarships; 
and 
‘‘(B) assistance in completing financial aid ap-
plications, including the Free Application for Federal 
Student Aid described in section 483(a); 
‘‘(4) education or counseling services designed to 
improve the financial literacy and economic literacy 
of students, including financial planning for postsec-
ondary education; 
‘‘(5) activities designed to assist students partici-
pating in the project in securing college admission
184 
and financial assistance for enrollment in graduate 
and professional programs; and 
‘‘(6) activities designed to assist students enrolled 
in 2-year institutions of higher education in securing 
admission and financial assistance for enrollment in 
a 4-year program of postsecondary education. 
‘‘(c) PERMISSIBLE
SERVICES.—A project assisted 
under this section may provide services such as— 
‘‘(1) consistent, individualized personal, career, 
and academic counseling, provided by assigned coun-
selors; 
‘‘(2) information, activities, and instruction de-
signed to acquaint youths participating in the project 
with the range of career options available to the stu-
dents; 
‘‘(3) exposure to cultural events and academic 
programs not usually available to disadvantaged stu-
dents; 
‘‘(4) activities designed to acquaint students par-
ticipating in the project with the range of career op-
tions available to the students; 
‘‘(5) mentoring programs involving faculty or 
upper class students, or a combination thereof; 
‘‘(6) securing temporary housing during breaks 
in the academic year for students who are homeless
185 
children and youths (as such term is defined in sec-
tion 725 of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11434a)) or were formerly homeless 
children and youths and students who are in foster 
care or are aging out of the foster care system; and 
‘‘(7) programs and activities as described in sub-
section (b) or paragraphs (1) through (5) of this sub-
section that are specially designed for students who 
are limited English proficient, students with disabil-
ities, students who are homeless children and youths 
(as such term is defined in section 725 of the McKin-
ney-Vento Homeless Assistance Act (42 U.S.C. 
11434a)) or were formerly homeless children and 
youths, or students who are in foster care or are 
aging out of the foster care system.’’; 
(4) in subsection (d)(1) (as redesignated by 
paragraph (2)), by striking ‘‘subsection (b)’’ and in-
serting ‘‘subsection (c)’’; and 
(5) in the matter preceding paragraph (1) of 
subsection (e) (as redesignated by paragraph (2)), by 
striking ‘‘student support services projects under this 
chapter’’ and inserting ‘‘projects under this section’’. 
(e) POSTBACCALAUREATE ACHIEVEMENT PROGRAM 
AUTHORITY.—Section 402E (20 U.S.C. 1070a–15) is 
amended—
186 
(1) in subsection (b)— 
(A) in the subsection heading, by inserting 
‘‘REQUIRED’’ before ‘‘SERVICES’’; 
(B) in the matter preceding paragraph (1), 
by striking ‘‘A postbaccalaureate achievement 
project assisted under this section may provide 
services such as—’’ and inserting ‘‘A project as-
sisted under this section shall provide—’’; 
(C) in paragraph (5), by inserting ‘‘and’’ 
after the semicolon; 
(D) in paragraph (6), by striking the semi-
colon and inserting a period; and 
(E) by striking paragraphs (7) and (8); 
(2) by redesignating subsections (c) through (f) 
as subsections (d) through (g), respectively; 
(3) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) PERMISSIBLE
SERVICES.—A project assisted 
under this section may provide services such as— 
‘‘(1) education or counseling services designed to 
improve the financial literacy and economic literacy 
of students, including financial planning for postsec-
ondary education;
187 
‘‘(2) mentoring programs involving faculty mem-
bers at institutions of higher education, students, or 
any combination of such persons; and 
‘‘(3) exposure to cultural events and academic 
programs not usually available to disadvantaged stu-
dents.’’; 
(4) in the matter preceding paragraph (1) of 
subsection (d) (as redesignated by paragraph (2)), by 
striking ‘‘postbaccalaureate achievement’’; 
(5) in the matter preceding paragraph (1) of 
subsection (f) (as redesignated by paragraph (2)), by 
striking ‘‘postbaccalaureate achievement project’’ and 
inserting ‘‘project under this section’’; and 
(6) in subsection (g) (as redesignated by para-
graph (2))— 
(A) by striking ‘‘402A(f)’’ and inserting 
‘‘402A(g)’’; and 
(B) by striking ‘‘1993 through 1997’’ and 
inserting ‘‘2007 through 2012’’. 
(f) EDUCATIONAL OPPORTUNITY CENTERS.—Section 
402F (20 U.S.C. 1070a–16) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘and’’ 
after the semicolon;
188 
(B) in paragraph (2), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(3) to improve the financial literacy and eco-
nomic literacy of students, including— 
‘‘(A) basic personal income, household 
money management, and financial planning 
skills; and 
‘‘(B) basic economic decisionmaking skills.’’; 
and 
(2) in subsection (b)— 
(A) 
by 
redesignating 
paragraphs 
(5) 
through (10) as paragraphs (6) through (11), re-
spectively; 
(B) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) education or counseling services designed to 
improve the financial literacy and economic literacy 
of students;’’; 
(C) by striking paragraph (7) (as redesig-
nated by subparagraph (A)) and inserting the 
following: 
‘‘(7) individualized personal, career, and aca-
demic counseling;’’; and
189 
(D) by striking paragraph (11) (as redesig-
nated by subparagraph (A)) and inserting the 
following: 
‘‘(11) programs and activities as described in 
paragraphs (1) through (10) that are specially de-
signed for students who are limited English pro-
ficient, students with disabilities, or students who are 
homeless children and youths (as such term is defined 
in section 725 of the McKinney-Vento Homeless As-
sistance Act (42 U.S.C. 11434a)), or programs and 
activities for students who are in foster care or are 
aging out of the foster care system.’’. 
(g) 
STAFF
DEVELOPMENT
ACTIVITIES.—Section 
402G(b)(3) (20 U.S.C. 1070a–17(b)(3)) is amended by in-
serting ‘‘, including strategies for recruiting and serving 
students who are homeless children and youths (as such 
term is defined in section 725 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11434a)) and students 
who are in foster care or are aging out of the foster care 
system’’ before the period at the end. 
(h) REPORTS, EVALUATIONS, 
AND
GRANTS
FOR 
PROJECT IMPROVEMENT
AND DISSEMINATION.—Section 
402H (20 U.S.C. 1070a–18) is amended— 
(1) by striking the section heading and inserting 
‘‘REPORTS, EVALUATIONS, AND
GRANTS
FOR
190 
PROJECT
IMPROVEMENT
AND
DISSEMINA-
TION.’’; 
(2) by redesignating subsections (a) through (c) 
as subsections (b) through (d), respectively; 
(3) by inserting before subsection (b) (as redesig-
nated by paragraph (2)) the following: 
‘‘(a) REPORTS TO THE AUTHORIZING COMMITTEES.— 
The Secretary shall submit annually, to the authorizing 
committees, a report that documents the performance of all 
programs funded under this chapter. The report shall— 
‘‘(1) be submitted not later than 24 months after 
the eligible entities receiving funds under this chapter 
are required to report their performance to the Sec-
retary; 
‘‘(2) focus on the programs’ performance on the 
relevant outcome criteria determined under section 
402A(f)(4); 
‘‘(3) aggregate individual project performance 
data on the outcome criteria in order to provide na-
tional performance data for each program; 
‘‘(4) include, when appropriate, descriptive data, 
multi-year data, and multi-cohort data; and 
‘‘(5) include comparable data on the performance 
nationally of low-income students, first-generation 
students, and students with disabilities.’’; and
191 
(4) in subsection (b) (as redesignated by para-
graph (2)), by striking paragraph (2) and inserting 
the following: 
‘‘(2) PRACTICES.— 
‘‘(A) IN
GENERAL.—The evaluations de-
scribed in paragraph (1) shall identify institu-
tional, community, and program or project prac-
tices that are particularly effective in— 
‘‘(i) enhancing the access of low-income 
individuals and first-generation college stu-
dents to postsecondary education; 
‘‘(ii) the preparation of the individuals 
and students for postsecondary education; 
and 
‘‘(iii) fostering the success of the indi-
viduals and students in postsecondary edu-
cation. 
‘‘(B) PRIMARY PURPOSE.—Any evaluation 
conducted under this chapter shall have as its 
primary purpose the identification of particular 
practices that further the achievement of the out-
come 
criteria 
determined 
under 
section 
402A(f)(4). 
‘‘(C) DISSEMINATION AND USE OF EVALUA-
TION
FINDINGS.—The Secretary shall dissemi-
192 
nate to eligible entities and make available to the 
public the practices identified under subpara-
graph (B). The practices may be used by eligible 
entities that receive assistance under this chapter 
after the dissemination. 
‘‘(3) RECRUITMENT.—The Secretary shall not re-
quire an eligible entity desiring to receive assistance 
under this chapter to recruit students to serve as a 
control group for purposes of evaluating any program 
or project assisted under this chapter.’’. 
(i) 
ADDITIONAL
AMENDMENT
TO 
POSTBACCALAUREATE ACHIEVEMENT PROGRAM.—Section 
402E(d)(2) (as redesignated by subsection (e)(2)) (20 
U.S.C. 1070a–15(d)(2)) is further amended by inserting ‘‘, 
including Native Hawaiians, as defined in section 7207 of 
the Elementary and Secondary Education Act of 1965, and 
Pacific Islanders’’ after ‘‘graduate education’’. 
SEC. 404. GAINING EARLY AWARENESS AND READINESS 
FOR UNDERGRADUATE PROGRAMS. 
(a) EARLY INTERVENTION AND COLLEGE AWARENESS 
PROGRAM AUTHORIZED.—Section 404A (20 U.S.C. 1070a– 
21) is amended— 
(1) by striking subsection (a) and inserting the 
following:
193 
‘‘(a) PROGRAM AUTHORIZED.—The Secretary is au-
thorized, in accordance with the requirements of this chap-
ter, to establish a program that encourages eligible entities 
to provide support to eligible low-income students to assist 
the students in obtaining a secondary school diploma (or 
its recognized equivalent) and to prepare for and succeed 
in postsecondary education, by providing— 
‘‘(1) financial assistance, academic support, ad-
ditional counseling, mentoring, outreach, and sup-
portive services to middle school and secondary school 
students to reduce— 
‘‘(A) the risk of such students dropping out 
of school; or 
‘‘(B) the need for remedial education for 
such students at the postsecondary level; and 
‘‘(2) information to students and their parents 
about the advantages of obtaining a postsecondary 
education and the college financing options for the 
students and their parents.’’; 
(2) by striking subsection (b)(2)(A) and inserting 
the following: 
‘‘(A) give priority to eligible entities that 
have a prior, demonstrated commitment to early 
intervention leading to college access through col-
194 
laboration and replication of successful strate-
gies;’’; and 
(3) in subsection (b), by adding at the end the 
following: 
‘‘(3) CARRY OVER.—An eligible entity that re-
ceives a grant under this chapter may carry over any 
unspent grant funds from the final year of the grant 
period into the following year.’’; 
(4) by striking subsection (c)(2) and inserting 
the following: 
‘‘(2) a partnership— 
‘‘(A) consisting of— 
‘‘(i) 1 or more local educational agen-
cies; and 
‘‘(ii) 1 or more degree granting institu-
tions of higher education; and 
‘‘(B) which may include not less than 2 
other community organizations or entities, such 
as businesses, professional organizations, State 
agencies, institutions or agencies sponsoring pro-
grams authorized under subpart 4, or other pub-
lic or private agencies or organizations.’’. 
(b) 
REQUIREMENTS.—Section 
404B 
(20 
U.S.C. 
1070a–22) is amended—
196 
(c) APPLICATION.—Section 404C (20 U.S.C. 1070a– 
23) is amended— 
(1) in the section heading, by striking ‘‘ELIGI-
BLE
ENTITY
PLANS’’ and inserting ‘‘APPLICA-
TIONS’’; 
(2) in subsection (a)— 
(A) in the subsection heading, by striking 
‘‘PLAN’’ and inserting ‘‘APPLICATION’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘a plan’’ and inserting 
‘‘an application’’; and 
(ii) by striking the second sentence; 
and 
(C) by striking paragraph (2) and inserting 
the following: 
‘‘(2) CONTENTS.—Each application submitted 
pursuant to paragraph (1) shall be in such form, con-
tain or be accompanied by such information or assur-
ances, and be submitted at such time as the Secretary 
may require. Each such application shall, at a min-
imum— 
‘‘(A) describe the activities for which assist-
ance under this chapter is sought, including how 
the eligible entity will carry out the required ac-
tivities described in section 404D(a);
197 
‘‘(B) describe how the eligible agency will 
meet the requirements of section 404E; 
‘‘(C) provide assurances that adequate ad-
ministrative and support staff will be responsible 
for coordinating the activities described in sec-
tion 404D; 
‘‘(D) ensure that activities assisted under 
this chapter will not displace an employee or 
eliminate a position at a school assisted under 
this chapter, including a partial displacement 
such as a reduction in hours, wages or employ-
ment benefits; 
‘‘(E) describe, in the case of an eligible enti-
ty described in section 404A(c)(2), how the eligi-
ble entity will define the cohorts of the students 
served by the eligible entity pursuant to section 
404B(d), and how the eligible entity will serve 
the cohorts through grade 12, including— 
‘‘(i) how vacancies in the program 
under this chapter will be filled; and 
‘‘(ii) how the eligible entity will serve 
students 
attending 
different 
secondary 
schools; 
‘‘(F) describe how the eligible entity will co-
ordinate programs with other existing Federal,
198 
State, or local programs to avoid duplication 
and maximize the number of students served; 
‘‘(G) provide such additional assurances as 
the Secretary determines necessary to ensure 
compliance with the requirements of this chapter; 
and 
‘‘(H) provide information about the activi-
ties that will be carried out by the eligible entity 
to support systemic changes from which future 
cohorts of students will benefit.’’; 
(3) in the matter preceding subparagraph (A) of 
subsection (b)(1)— 
(A) by striking ‘‘a plan’’ and inserting ‘‘an 
application’’; and 
(B) by striking ‘‘such plan’’ and inserting 
‘‘such application’’; and 
(4) in subsection (c)(1), by striking ‘‘paid to stu-
dents from State, local, institutional, or private funds 
under this chapter’’ and inserting ‘‘obligated to stu-
dents from State, local, institutional, or private funds 
under this chapter, including pre-existing non-Fed-
eral financial assistance programs,’’; 
(5) in subsection (c)(1), by striking the semicolon 
at the end and inserting ‘‘including—
199 
‘‘(A) the amount contributed to a student 
scholarship fund established under section 404E; 
and 
‘‘(B) the amount of the costs of admin-
istering the scholarship program under section 
404E;’’. 
(6) in subsection (c)— 
(A) in paragraph (2), by striking ‘‘and’’ 
after the semicolon; 
(B) in paragraph (3), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) other resources recognized by the Secretary, 
including equipment and supplies, cash contributions 
from non-Federal sources, transportation expenses, in- 
kind or discounted program services, indirect costs, 
and facility usage.’’. 
(d) ACTIVITIES.—Section 404D (20 U.S.C. 1070a–24) 
is amended to read as follows: 
‘‘SEC. 404D. ACTIVITIES. 
‘‘(a) REQUIRED ACTIVITIES.—Each eligible entity re-
ceiving a grant under this chapter shall carry out the fol-
lowing: 
‘‘(1) Provide information regarding financial 
aid for postsecondary education to participating stu-
200 
dents 
in 
the 
cohort 
described 
in 
subsection 
404B(d)(1)(A). 
‘‘(2) Encourage student enrollment in rigorous 
and challenging curricula and coursework, in order to 
reduce the need for remedial coursework at the post-
secondary level. 
‘‘(3) Support activities designed to improve the 
number of participating students who— 
‘‘(A) obtain a secondary school diploma; 
and 
‘‘(B) complete applications for and enroll in 
a program of postsecondary education. 
‘‘(4) In the case of an eligible entity described in 
section 404A(c)(1), provide for the scholarships de-
scribed in section 404E. 
‘‘(b) OPTIONAL ACTIVITIES FOR STATES AND PART-
NERSHIPS.—An eligible entity that receives a grant under 
this chapter may use grant funds to carry out 1 or more 
of the following activities: 
‘‘(1) Providing tutoring and supporting mentors, 
including adults or former participants of a program 
under this chapter, for eligible students. 
‘‘(2) Conducting outreach activities to recruit 
priority students described in subsection (d) to par-
ticipate in program activities.
201 
‘‘(3) Providing supportive services to eligible stu-
dents. 
‘‘(4) Supporting the development or implementa-
tion of rigorous academic curricula, which may in-
clude college preparatory, Advanced Placement, or 
International Baccalaureate programs, and providing 
participating students access to rigorous core courses 
that reflect challenging State academic standards. 
‘‘(5) Supporting dual or concurrent enrollment 
programs between the secondary school and institu-
tion of higher education partners of an eligible entity 
described in section 404A(c)(2), and other activities 
that support participating students in— 
‘‘(A) meeting challenging academic stand-
ards; 
‘‘(B) successfully applying for postsecondary 
education; 
‘‘(C) successfully applying for student fi-
nancial aid; and 
‘‘(D) developing graduation and career 
plans. 
‘‘(6) Providing support for scholarships described 
in section 404E.
203 
‘‘(K) programs and activities described in 
this subsection that are specially designed for 
students who are limited English proficient. 
‘‘(10) Enabling eligible students to enroll in Ad-
vanced Placement or International Baccalaureate 
courses, or college entrance examination preparation 
courses. 
‘‘(11) Providing services to eligible students in 
the 
participating 
cohort 
described 
in 
section 
404B(d)(1)(A), through the first year of attendance at 
an institution of higher education. 
‘‘(12) Fostering and improving parent and fam-
ily involvement in elementary and secondary edu-
cation by promoting the advantages of a college edu-
cation, and emphasizing academic admission require-
ments and the need to take college preparation 
courses, through parent engagement and leadership 
activities. 
‘‘(13) Disseminating information that promotes 
the importance of higher education, explains college 
preparation and admissions requirements, and raises 
awareness of the resources and services provided by 
the eligible entities to eligible students, their families, 
and communities.
204 
‘‘(c) 
ADDITIONAL
OPTIONAL
ACTIVITIES
FOR 
STATES.—In addition to the required activities described 
in subsection (a) and the optional activities described in 
subsection (b), an eligible entity described in section 
404A(c)(1) receiving funds under this chapter may use 
grant funds to carry out 1 or more of the following activi-
ties: 
‘‘(1) Providing technical assistance to— 
‘‘(A) middle schools or secondary schools 
that are located within the State; or 
‘‘(B) partnerships described in section 
404A(c)(2) that are located within the State. 
‘‘(2) Providing professional development oppor-
tunities to individuals working with eligible cohorts 
of students described in section 404B(d)(1)(A). 
‘‘(3) Providing strategies and activities that 
align efforts in the State to prepare eligible students 
for attending and succeeding in postsecondary edu-
cation, which may include the development of gradua-
tion and career plans. 
‘‘(4) Disseminating information on the use of 
scientifically based research and best practices to im-
prove services for eligible students. 
‘‘(5)(A) Disseminating information on effective 
coursework and support services that assist students
205 
in obtaining the goals described in subparagraph 
(B)(ii). 
‘‘(B) Identifying and disseminating information 
on best practices with respect to— 
‘‘(i) increasing parental involvement; and 
‘‘(ii) preparing students, including students 
with disabilities and students who are limited 
English proficient, to succeed academically in, 
and prepare financially for, postsecondary edu-
cation. 
‘‘(6) Working to align State academic standards 
and curricula with the expectations of postsecondary 
institutions and employers. 
‘‘(7) Developing alternatives to traditional sec-
ondary school that give students a head start on at-
taining a recognized postsecondary credential (includ-
ing an industry certificate, an apprenticeship, or an 
associate’s or a bachelor’s degree), including school de-
signs that give students early exposure to college-level 
courses and experiences and allow students to earn 
transferable college credits or an associate’s degree at 
the same time as a secondary school diploma. 
‘‘(8) Creating community college programs for 
drop-outs that are personalized drop-out recovery pro-
206 
grams that allow drop-outs to complete a regular sec-
ondary school diploma and begin college-level work. 
‘‘(d) PRIORITY STUDENTS.—For eligible entities not 
using a cohort approach, the eligible entity shall treat as 
priority students any student in middle or secondary school 
who is eligible— 
‘‘(1) to be counted under section 1124(c) of the 
Elementary and Secondary Education Act of 1965; 
‘‘(2) for free or reduced price meals under the 
Richard B. Russell National School Lunch Act; 
‘‘(3) for assistance under a State program fund-
ed under part A or E of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq., 670 et seq.); or 
‘‘(4) for assistance under subtitle B of title VII 
of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11431 et seq.). 
‘‘(e) ALLOWABLE PROVIDERS.—In the case of eligible 
entities described in section 404A(c)(1), the activities re-
quired by this section may be provided by service providers 
such as community-based organizations, schools, institu-
tions of higher education, public and private agencies, non-
profit and philanthropic organizations, businesses, institu-
tions and agencies sponsoring programs authorized under 
subpart 4, and other organizations the State determines ap-
propriate.’’.
207 
(e) SCHOLARSHIP COMPONENT.—Section 404E (20 
U.S.C. 1070a–25) is amended— 
(1) by striking subsections (e) and (f); 
(2) by redesignating subsections (b), (c), and (d) 
as subsections (d), (f), and (g), respectively; 
(3) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) LIMITATION.— 
‘‘(1) IN
GENERAL.—Subject to paragraph (2), 
each eligible entity described in section 404A(c)(1) 
that receives a grant under this chapter shall use not 
less than 25 percent and not more than 50 percent of 
the grant funds for activities described in section 
404D (except for the activity described in subsection 
(a)(4) of such section), with the remainder of such 
funds to be used for a scholarship program under this 
section in accordance with such subsection. 
‘‘(2) EXCEPTION.—Notwithstanding paragraph 
(1), the Secretary may allow an eligible entity to use 
more than 50 percent of grant funds received under 
this chapter for such activities, if the eligible entity 
demonstrates that the eligible entity has another 
means of providing the students with the financial as-
sistance described in this section and describes such
208 
means in the application submitted under section 
404C. 
‘‘(c) NOTIFICATION OF ELIGIBILITY.—Each eligible en-
tity providing scholarships under this section shall provide 
information on the eligibility requirements for the scholar-
ships to all participating students upon the students’ entry 
into the programs assisted under this chapter.’’; 
(4) in subsection (d) (as redesignated by para-
graph (2)), by striking ‘‘the lesser of’’ and all that fol-
lows through the period at the end of paragraph (2) 
and inserting ‘‘the minimum Federal Pell Grant 
award under section 401 for such award year.’’; 
(5) by inserting after subsection (d) (as redesig-
nated by paragraph (2) and amended by paragraph 
(4)) the following: 
‘‘(e) PORTABILITY OF ASSISTANCE.— 
‘‘(1) IN
GENERAL.—Each eligible entity de-
scribed in section 404A(c)(1) that receives a grant 
under this chapter shall create or organize a trust for 
each cohort described in section 404B(d)(1)(A) for 
which the grant is sought in the application sub-
mitted by the entity, which trust shall be an amount 
that is not less than the minimum scholarship 
amount described in subsection (d), multiplied by the 
number of students participating in the cohort.
211 
404D’’ and inserting ‘‘activities required under 
section 404D(a)’’. 
(f) REPEAL OF 21ST CENTURY SCHOLAR CERTIFI-
CATES.—Chapter 2 of subpart 2 of part A of title IV (20 
U.S.C. 1070a–21 et seq.) is further amended— 
(1) by striking section 404F; and 
(2) by redesignating sections 404G and 404H as 
sections 404F and 404G, respectively. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—Section 
404G (as redesignated by subsection (f)) (20 U.S.C. 1070a– 
28) is amended by striking ‘‘$200,000,000 for fiscal year 
1999’’ and all that follows through the period and inserting 
‘‘such sums as may be necessary for fiscal year 2008 and 
each of the 5 succeeding fiscal years.’’. 
(h) CONFORMING AMENDMENTS.—Chapter 2 of sub-
part 2 of part A of title IV (20 U.S.C. 1070a–21 et seq.) 
is further amended— 
(1) in section 404A(b)(1), by striking ‘‘404H’’ 
and inserting ‘‘404G’’; 
(2) in section 404B(a)(1), by striking ‘‘404H’’ 
and inserting ‘‘404G’’; and 
(3) in section 404F(c) (as redesignated by sub-
section (f)(2)), by striking ‘‘404H’’ and inserting 
‘‘404G’’.
212 
SEC. 405. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLAR-
SHIPS. 
Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 
1070a–31 et seq.) is repealed. 
SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPOR-
TUNITY GRANTS. 
(a) 
APPROPRIATIONS
AUTHORIZED.—Section 
413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended by striking 
‘‘$675,000,000 for fiscal year 1999’’ and all that follows 
through the period and inserting ‘‘such sums as may be nec-
essary for fiscal year 2008 and each of the 5 succeeding 
fiscal years.’’. 
(b) ALLOCATION OF FUNDS.— 
(1) ALLOCATION OF FUNDS.—Section 413D (20 
U.S.C. 1070b–3) is amended— 
(A) by striking subsection (a)(4); and 
(B) in subsection (c)(3)(D), by striking 
‘‘$450’’ and inserting ‘‘$600’’. 
(2) 
TECHNICAL
CORRECTION.—Section 
413D(a)(1) (20 U.S.C. 1070b–3(a)(1)) is amended by 
striking ‘‘such institution’’ and all that follows 
through the period and inserting ‘‘such institution re-
ceived under subsections (a) and (b) of this section for 
fiscal year 1999 (as such subsections were in effect 
with respect to allocations for such fiscal year).’’.
213 
SEC. 407. LEVERAGING EDUCATIONAL ASSISTANCE PART-
NERSHIP PROGRAM. 
(a) 
APPROPRIATIONS
AUTHORIZED.—Section 
415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended to read as 
follows: 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated to carry out this subpart such sums as 
may be necessary for fiscal year 2008 and each of the 
5 succeeding fiscal years.’’. 
(b) APPLICATIONS.—Section 415C(b) (20 U.S.C. 
1070c–2(b)) is amended— 
(1) in the matter preceding subparagraph (A) of 
paragraph (2), by striking ‘‘not in excess of $5,000 
per academic year’’ and inserting ‘‘not to exceed the 
lesser of $12,500 or the student’s cost of attendance 
per academic year’’; and 
(2) by striking paragraph (10) and inserting the 
following: 
‘‘(10) provides notification to eligible students 
that such grants are— 
‘‘(A) Leveraging Educational Assistance 
Partnership grants; and 
‘‘(B) funded by the Federal Government, the 
State, and other contributing partners.’’. 
(c) GRANTS FOR ACCESS AND PERSISTENCE.—Section 
415E (20 U.S.C. 1070c–3a) is amended to read as follows:
214 
‘‘SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE. 
‘‘(a) PURPOSE.—It is the purpose of this section to ex-
pand college access and increase college persistence by mak-
ing allotments to States to enable the States to— 
‘‘(1) expand and enhance partnerships with in-
stitutions of higher education, early information and 
intervention, mentoring, or outreach programs, pri-
vate corporations, philanthropic organizations, and 
other interested parties in order to— 
‘‘(A) carry out activities under this section; 
and 
‘‘(B) provide coordination and cohesion 
among Federal, State, and local governmental 
and private efforts that provide financial assist-
ance to help low-income students attend an insti-
tution of higher education; 
‘‘(2) provide need-based grants for access and 
persistence to eligible low-income students; 
‘‘(3) provide early notification to low-income 
students of the students’ eligibility for financial aid; 
and 
‘‘(4) encourage increased participation in early 
information and intervention, mentoring, or outreach 
programs. 
‘‘(b) ALLOTMENTS TO STATES.— 
‘‘(1) IN GENERAL.—
215 
‘‘(A) AUTHORIZATION.—From sums re-
served under section 415A(b)(2) for each fiscal 
year, the Secretary shall make an allotment to 
each State that submits an application for an al-
lotment in accordance with subsection (c) to en-
able the State to pay the Federal share, as de-
scribed in paragraph (2), of the cost of carrying 
out the activities under subsection (d). 
‘‘(B) DETERMINATION OF ALLOTMENT.—In 
making allotments under subparagraph (A), the 
Secretary shall consider the following: 
‘‘(i) CONTINUATION OF AWARD.—If a 
State continues to meet the specifications es-
tablished in such State’s application under 
subsection (c), the Secretary shall make an 
allotment to such State that is not less than 
the allotment made to such State for the 
previous fiscal year. 
‘‘(ii) PRIORITY.—The Secretary shall 
give priority in making allotments to States 
that meet the requirements described in 
paragraph (2)(A)(ii). 
‘‘(2) FEDERAL SHARE.—
216 
‘‘(A) IN
GENERAL.—The Federal share 
under this section shall be determined in accord-
ance with the following: 
‘‘(i) If a State applies for an allotment 
under this section in partnership with— 
‘‘(I) any number of degree grant-
ing institutions of higher education in 
the State whose combined full-time en-
rollment represents less than a major-
ity of all students attending institu-
tions of higher education in the State; 
and 
‘‘(II)(aa) philanthropic organiza-
tions that are located in, or that pro-
vide funding in, the State; or 
‘‘(bb) private corporations that 
are located in, or that do business in, 
the State, 
then the Federal share of the cost of car-
rying out the activities under subsection (d) 
shall be equal to 50 percent. 
‘‘(ii) If a State applies for an allot-
ment under this section in partnership 
with—
217 
‘‘(I) any number of degree grant-
ing institutions of higher education in 
the State whose combined full-time en-
rollment represents a majority of all 
students attending institutions of high-
er education in the State; and 
‘‘(II)(aa) philanthropic organiza-
tions that are located in, or that pro-
vide funding in, the State; or 
‘‘(bb) private corporations that 
are located in, or that do business in, 
the State, 
then the Federal share of the cost of car-
rying out the activities under subsection (d) 
shall be equal to 57 percent. 
‘‘(B) NON-FEDERAL SHARE.— 
‘‘(i) IN
GENERAL.—The non-Federal 
share under this section may be provided in 
cash or in kind, fully evaluated and in ac-
cordance with this subparagraph. 
‘‘(ii) IN KIND CONTRIBUTION.—For the 
purpose of calculating the non-Federal share 
under this section, an in kind contribution 
is a non-cash award that has monetary 
value, such as provision of room and board
218 
and transportation passes, and that helps a 
student meet the cost of attendance. 
‘‘(iii) EFFECT ON NEED ANALYSIS.— 
For the purpose of calculating a student’s 
need in accordance with part F of this title, 
an in-kind contribution described in clause 
(ii) shall not be considered an asset or in-
come. 
‘‘(c) APPLICATION FOR ALLOTMENT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) SUBMISSION.—A State that desires to 
receive an allotment under this section on behalf 
of a partnership described in paragraph (3) shall 
submit an application to the Secretary at such 
time, in such manner, and containing such in-
formation as the Secretary may require. 
‘‘(B) CONTENT.—An application submitted 
under subparagraph (A) shall include the fol-
lowing: 
‘‘(i) A description of the State’s plan 
for using the allotted funds. 
‘‘(ii) Assurances that the State will 
provide the non-Federal share from State, 
institutional, 
philanthropic, 
or 
private 
funds, of not less than the required share of
219 
the cost of carrying out the activities under 
subsection (d), as determined under sub-
section (b), in accordance with the fol-
lowing: 
‘‘(I) The State shall specify the 
methods by which non-Federal share 
funds will be paid, and include provi-
sions designed to ensure that funds 
provided under this section will be 
used to supplement, and not supplant, 
Federal and non-Federal funds avail-
able for carrying out the activities 
under this title. 
‘‘(II) A State that uses non-Fed-
eral funds to create or expand existing 
partnerships with nonprofit organiza-
tions or community-based organiza-
tions in which such organizations 
match State funds for student scholar-
ships, may apply such matching funds 
from such organizations toward ful-
filling the State’s non-Federal share 
obligation under this clause. 
‘‘(iii) Assurances that early informa-
tion and intervention, mentoring, or out-
220 
reach programs exist within the State or 
that there is a plan to make such programs 
widely available. 
‘‘(iv) A description of the organiza-
tional structure that the State has in place 
to administer the activities under subsection 
(d), including a description of the system 
the State will use to track the participation 
of students who receive grants under this 
section to degree completion. 
‘‘(v) Assurances that the State has a 
method in place, such as acceptance of the 
automatic zero expected family contribution 
determination described in section 479, to 
identify eligible low-income students and 
award State grant aid to such students. 
‘‘(vi) Assurances that the State will 
provide notification to eligible low-income 
students that grants under this section 
are— 
‘‘(I) Leveraging Educational As-
sistance Partnership Grants; and 
‘‘(II) funded by the Federal Gov-
ernment, the State, and other contrib-
uting partners.
221 
‘‘(2) STATE
AGENCY.—The State agency that 
submits an application for a State under section 
415C(a) shall be the same State agency that submits 
an application under paragraph (1) for such State. 
‘‘(3) PARTNERSHIP.—In applying for an allot-
ment under this section, the State agency shall apply 
for the allotment in partnership with— 
‘‘(A) not less than 1 public and 1 private 
degree granting institution of higher education 
that are located in the State, if applicable; 
‘‘(B) new or existing early information and 
intervention, mentoring, or outreach programs 
located in the State; and 
‘‘(C) not less than 1— 
‘‘(i) philanthropic organization located 
in, or that provides funding in, the State; 
or 
‘‘(ii) private corporation located in, or 
that does business in, the State. 
‘‘(4) ROLES OF PARTNERS.— 
‘‘(A) STATE AGENCY.—A State agency that 
is in a partnership receiving an allotment under 
this section— 
‘‘(i) shall—
222 
‘‘(I) serve as the primary admin-
istrative unit for the partnership; 
‘‘(II) provide or coordinate non- 
Federal share funds, and coordinate 
activities among partners; 
‘‘(III) encourage each institution 
of higher education in the State to par-
ticipate in the partnership; 
‘‘(IV) make determinations and 
early notifications of assistance as de-
scribed under subsection (d)(2); and 
‘‘(V) annually report to the Sec-
retary on the partnership’s progress in 
meeting the purpose of this section; 
and 
‘‘(ii) may provide early information 
and intervention, mentoring, or outreach 
programs. 
‘‘(B) DEGREE GRANTING INSTITUTIONS OF 
HIGHER EDUCATION.—A degree granting institu-
tion of higher education that is in a partnership 
receiving an allotment under this section— 
‘‘(i) shall— 
‘‘(I) recruit and admit partici-
pating qualified students and provide
223 
such additional institutional grant aid 
to participating students as agreed to 
with the State agency; 
‘‘(II) provide support services to 
students who receive grants for access 
and persistence under this section and 
are enrolled at such institution; and 
‘‘(III) assist the State in the iden-
tification of eligible students and the 
dissemination of early notifications of 
assistance as agreed to with the State 
agency; and 
‘‘(ii) may provide funding for early in-
formation and intervention, mentoring, or 
outreach programs or provide such services 
directly. 
‘‘(C) PROGRAMS.—An early information 
and intervention, mentoring, or outreach pro-
gram that is in a partnership receiving an allot-
ment under this section shall provide direct serv-
ices, support, and information to participating 
students. 
‘‘(D) PHILANTHROPIC
ORGANIZATION
OR 
PRIVATE CORPORATION.—A philanthropic orga-
nization or private corporation that is in a
224 
partnership receiving an allotment under this 
section shall provide funds for grants for access 
and persistence for participating students, or 
provide funds or support for early information 
and intervention, mentoring, or outreach pro-
grams. 
‘‘(d) AUTHORIZED ACTIVITIES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) ESTABLISHMENT OF PARTNERSHIP.— 
Each State receiving an allotment under this 
section shall use the funds to establish a partner-
ship to award grants for access and persistence 
to eligible low-income students in order to in-
crease the amount of financial assistance such 
students receive under this subpart for under-
graduate education expenses. 
‘‘(B) AMOUNT OF GRANTS.— 
‘‘(i) PARTNERSHIPS
WITH
INSTITU-
TIONS SERVING LESS THAN A MAJORITY OF 
STUDENTS IN THE STATE.— 
‘‘(I) IN
GENERAL.—In the case 
where a State receiving an allotment 
under this section is in a partnership 
described in subsection (b)(2)(A)(i), the 
amount of a grant for access and per-
225 
sistence awarded to a student by such 
State shall be not less than the amount 
that is equal to the average under-
graduate tuition and mandatory fees 
at 4-year public institutions of higher 
education in the State where the stu-
dent resides (less any amounts of other 
Federal or State sponsored grants, 
work study, and scholarships received 
by the student), and such grant for ac-
cess and persistence shall be used to-
ward the cost of attendance at an in-
stitution of higher education located in 
the State. 
‘‘(II) COST OF ATTENDANCE.—A 
State that has a program, apart from 
the partnership under this section, of 
providing eligible low-income students 
with grants that are equal to the aver-
age undergraduate tuition and manda-
tory fees at 4-year public institutions 
of higher education in the State, may 
increase the amount of grants for ac-
cess and persistence awarded to stu-
dents by such State up to an amount
226 
that is equal to the average cost of at-
tendance at 4-year public institutions 
of higher education in the State (less 
any amounts of other Federal or State 
sponsored grants, work study, and 
scholarships received by the student). 
‘‘(ii) PARTNERSHIPS
WITH
INSTITU-
TIONS
SERVING
THE
MAJORITY
OF
STU-
DENTS IN THE STATE.—In the case where a 
State receiving an allotment under this sec-
tion is in a partnership described in sub-
section (b)(2)(A)(ii), the amount of a grant 
for access and persistence awarded to a stu-
dent by such State shall be not more than 
an amount that is equal to the average cost 
of attendance at 4-year public institutions 
of higher education in the State where the 
student resides (less any amounts of other 
Federal or State sponsored grants, work 
study, and scholarships received by the stu-
dent), and such grant for access and persist-
ence shall be used by the student to attend 
an institution of higher education located in 
the State. 
‘‘(C) SPECIAL RULES.—
227 
‘‘(i) PARTNERSHIP
INSTITUTIONS.—A 
State receiving an allotment under this sec-
tion may restrict the use of grants for access 
and persistence under this section by 
awarding the grants only to students at-
tending institutions of higher education that 
are participating in the partnership. 
‘‘(ii) OUT-OF-STATE INSTITUTIONS.—If 
a State provides grants through another 
program under this subpart to students at-
tending institutions of higher education lo-
cated in another State, such agreement may 
also apply to grants awarded under this 
section. 
‘‘(2) EARLY NOTIFICATION.— 
‘‘(A) IN
GENERAL.—Each State receiving 
an allotment under this section shall annually 
notify low-income students, such as students who 
are eligible to receive a free lunch under the 
school lunch program established under the Rich-
ard B. Russell National School Lunch Act, in 
grade 7 through grade 12 in the State, of the stu-
dents’ potential eligibility for student financial 
assistance, including a grant for access and per-
228 
sistence, to attend an institution of higher edu-
cation. 
‘‘(B) CONTENT OF NOTICE.—The notifica-
tion under subparagraph (A)— 
‘‘(i) shall include— 
‘‘(I) information about early in-
formation and intervention, mentoring, 
or outreach programs available to the 
student; 
‘‘(II) information that a student’s 
eligibility for a grant for access and 
persistence is enhanced through par-
ticipation in an early information and 
intervention, mentoring, or outreach 
program; 
‘‘(III) an explanation that student 
and family eligibility for, and partici-
pation in, other Federal means-tested 
programs may indicate eligibility for a 
grant for access and persistence and 
other student aid programs; 
‘‘(IV) a nonbinding estimate of 
the total amount of financial aid that 
a low-income student with a similar 
income level may expect to receive, in-
229 
cluding an estimate of the amount of a 
grant for access and persistence and an 
estimate of the amount of grants, 
loans, and all other available types of 
aid from the major Federal and State 
financial aid programs; 
‘‘(V) an explanation that in order 
to be eligible for a grant for access and 
persistence, at a minimum, a student 
shall— 
‘‘(aa) meet the requirement 
under paragraph (3); 
‘‘(bb) 
graduate 
from 
sec-
ondary school; and 
‘‘(cc) enroll at an institution 
of higher education that is a part-
ner in the partnership or qualifies 
under subsection (d)(1)(C)(ii); 
‘‘(VI) information on any addi-
tional requirements (such as a student 
pledge detailing student responsibil-
ities) that the State may impose for re-
ceipt of a grant for access and persist-
ence under this section; and
230 
‘‘(VII) instructions on how to 
apply for a grant for access and per-
sistence and an explanation that a stu-
dent is required to file a Free Applica-
tion for Federal Student Aid author-
ized under section 483(a) to be eligible 
for such grant and assistance from 
other Federal and State financial aid 
programs; and 
‘‘(ii) may include a disclaimer that 
grant awards for access and persistence are 
contingent upon— 
‘‘(I) a determination of the stu-
dent’s financial eligibility at the time 
of the student’s enrollment at an insti-
tution of higher education that is a 
partner in the partnership or qualifies 
under subsection (d)(1)(C)(ii); 
‘‘(II) annual Federal and State 
appropriations; and 
‘‘(III) other aid received by the 
student at the time of the student’s en-
rollment at such institution of higher 
education.
231 
‘‘(3) ELIGIBILITY.—In determining which stu-
dents are eligible to receive grants for access and per-
sistence, the State shall ensure that each such student 
meets not less than 1 of the following: 
‘‘(A) Meets not less than 2 of the following 
criteria, with priority given to students meeting 
all of the following criteria: 
‘‘(i) Has an expected family contribu-
tion equal to zero (as described in section 
479) or a comparable alternative based 
upon the State’s approved criteria in sec-
tion 415C(b)(4). 
‘‘(ii) Has qualified for a free lunch, or 
at the State’s discretion a reduced price 
lunch, under the school lunch program es-
tablished under the Richard B. Russell Na-
tional School Lunch Act. 
‘‘(iii) Qualifies for the State’s max-
imum undergraduate award, as authorized 
under section 415C(b). 
‘‘(iv) Is participating in, or has par-
ticipated in, a Federal, State, institutional, 
or community early information and inter-
vention, mentoring, or outreach program, as
232 
recognized by the State agency admin-
istering activities under this section. 
‘‘(B) Is receiving, or has received, a grant 
for access and persistence under this section, in 
accordance with paragraph (5). 
‘‘(4) GRANT AWARD.—Once a student, including 
those students who have received early notification 
under paragraph (2) from the State, applies for ad-
mission to an institution that is a partner in the 
partnership, files a Free Application for Federal Stu-
dent Aid and any related existing State form, and is 
determined eligible by the State under paragraph (3), 
the State shall— 
‘‘(A) issue the student a preliminary award 
certificate for a grant for access and persistence 
with tentative award amounts; and 
‘‘(B) inform the student that payment of the 
grant for access and persistence award amounts 
is subject to certification of enrollment and 
award eligibility by the institution of higher 
education. 
‘‘(5) DURATION OF AWARD.—An eligible student 
that receives a grant for access and persistence under 
this section shall receive such grant award for each 
year of such student’s undergraduate education in
233 
which the student remains eligible for assistance 
under this title, including pursuant to section 484(c), 
and remains financially eligible as determined by the 
State, except that the State may impose reasonable 
time limits to degree completion. 
‘‘(e) USE
OF FUNDS
FOR ADMINISTRATIVE COSTS 
PROHIBITED.—A State that receives an allotment under 
this section shall not use any of the allotted funds to pay 
administrative costs associated with any of the authorized 
activities described in subsection (d). 
‘‘(f) STATUTORY AND REGULATORY RELIEF FOR INSTI-
TUTIONS
OF HIGHER EDUCATION.—The Secretary may 
grant, upon the request of an institution of higher education 
that is in a partnership described in subsection 
(b)(2)(A)(ii) and that receives an allotment under this sec-
tion, a waiver for such institution from statutory or regu-
latory requirements that inhibit the ability of the institu-
tion to successfully and efficiently participate in the activi-
ties of the partnership. 
‘‘(g) APPLICABILITY RULE.—The provisions of this 
subpart which are not inconsistent with this section shall 
apply to the program authorized by this section. 
‘‘(h) MAINTENANCE
OF EFFORT REQUIREMENT.— 
Each State receiving an allotment under this section for 
a fiscal year shall provide the Secretary with an assurance
234 
that the aggregate amount expended per student or the ag-
gregate expenditures by the State, from funds derived from 
non-Federal sources, for the authorized activities described 
in subsection (d) for the preceding fiscal year were not less 
than the amount expended per student or the aggregate ex-
penditure by the State for the activities for the second pre-
ceding fiscal year. 
‘‘(i) SPECIAL RULE.—Notwithstanding subsection (h), 
for purposes of determining a State’s share of the cost of 
the authorized activities described in subsection (d), the 
State shall consider only those expenditures from non-Fed-
eral sources that exceed the State’s total expenditures for 
need-based grants, scholarships, and work-study assistance 
for fiscal year 1999 (including any such assistance provided 
under this subpart). 
‘‘(j) CONTINUATION AND TRANSITION.—For the 2-year 
period that begins on the date of enactment of the Higher 
Education Amendments of 2007, the Secretary shall con-
tinue to award grants under section 415E of the Higher 
Education Act of 1965 as such section existed on the day 
before the date of enactment of such Act to States that choose 
to apply for grants under such predecessor section. 
‘‘(k) REPORTS.—Not later than 3 years after the date 
of enactment of the Higher Education Amendments of 2007 
and annually thereafter, the Secretary shall submit a report
235 
describing the activities and the impact of the partnerships 
under this section to the authorizing committees.’’. 
SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMI-
LIES ARE ENGAGED IN MIGRANT AND SEA-
SONAL FARMWORK. 
Section 418A (20 U.S.C. 1070d–2) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1)(B)(i), by striking 
‘‘parents’’ and inserting ‘‘immediate family’’; 
(B) in paragraph (3)(B), by inserting ‘‘(in-
cluding preparation for college entrance exami-
nations)’’ after ‘‘college program’’; 
(C) in paragraph (5), by striking ‘‘weekly’’; 
(D) in paragraph (7), by striking ‘‘and’’ 
after the semicolon; 
(E) in paragraph (8)— 
(i) by inserting ‘‘(such as transpor-
tation and child care)’’ after ‘‘services’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(F) by adding at the end the following: 
‘‘(9) other activities to improve persistence and 
retention in postsecondary education.’’; 
(2) in subsection (c)— 
(A) in paragraph (1)—
236 
(i) in subparagraph (A), by striking 
‘‘parents’’ and inserting ‘‘immediate fam-
ily’’; and 
(ii) in subparagraph (B)— 
(I) in the matter preceding clause 
(i), by inserting ‘‘to improve place-
ment, persistence, and retention in 
postsecondary education,’’ after ‘‘serv-
ices’’; and 
(II) in clause (i), by striking 
‘‘and career’’ and inserting ‘‘career, 
and economic education or personal fi-
nance’’; 
(iii) in subparagraph (E), by striking 
‘‘and’’ after the semicolon; 
(iv) by redesignating subparagraph (F) 
as subparagraph (G); 
(v) by inserting after subparagraph 
(E) the following: 
‘‘(F) internships; and’’; and 
(vi) in subparagraph (G) (as redesig-
nated by clause (iv)), by striking ‘‘support 
services’’ and inserting ‘‘essential supportive 
services (such as transportation and child 
care)’’; and
237 
(B) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘and’’ after the semicolon; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘, and 
coordinating such services, assistance, and 
aid with other non-program services, assist-
ance, and aid, including services, assist-
ance, and aid provided by community-based 
organizations, which may include men-
toring and guidance; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) for students attending 2-year institutions of 
higher education, encouraging the students to transfer 
to 4-year institutions of higher education, where ap-
propriate, and monitoring the rate of transfer of such 
students.’’; 
(3) in subsection (e), by striking ‘‘section 
402A(c)(1)’’ and inserting ‘‘section 402A(c)(2)’’; 
(4) in subsection (f)— 
(A) 
in 
paragraph 
(1), 
by 
striking 
‘‘$150,000’’ and inserting ‘‘$180,000’’; and 
(B) 
in 
paragraph 
(2), 
by 
striking 
‘‘$150,000’’ and inserting ‘‘$180,000’’;
238 
(5) by redesignating subsections (g) and (h) as 
subsections (h) and (i), respectively; 
(6) by inserting after subsection (f) the following: 
‘‘(g) RESERVATION OF FUNDS.—From the amounts 
made available under subsection (i), the Secretary may re-
serve not more than a total of 1⁄2 of 1 percent for outreach 
activities, technical assistance, and professional develop-
ment programs relating to the programs under subsection 
(a).’’; 
(7) by striking subsection (h) (as redesignated by 
paragraph (5)) and inserting the following: 
‘‘(h) DATA COLLECTION.—The Commissioner for Edu-
cation Statistics shall— 
‘‘(1) annually collect data on persons receiving 
services authorized under this subpart regarding such 
persons’ rates of secondary school graduation, en-
trance into postsecondary education, and completion 
of postsecondary education; 
‘‘(2) not less often than once every 2 years, pre-
pare and submit a report based on the most recently 
available data under paragraph (1) to the author-
izing committees; and 
‘‘(3) make such report available to the public.’’; 
and
239 
(8) in subsection (i) (as redesignated by para-
graph (5))— 
(A) 
in 
paragraph 
(1), 
by 
striking 
‘‘$15,000,000 for fiscal year 1999’’ and all that 
follows through the period and inserting ‘‘such 
sums as may be necessary for fiscal year 2008 
and each of the 5 succeeding fiscal years.’’; and 
(B) 
in 
paragraph 
(2), 
by 
striking 
‘‘$5,000,000 for fiscal year 1999’’ and all that 
follows through the period and inserting ‘‘such 
sums as may be necessary for fiscal year 2008 
and each of the 5 succeeding fiscal years.’’. 
SEC. 409. ROBERT C. BYRD HONORS SCHOLARSHIP PRO-
GRAM. 
(a) ELIGIBILITY OF SCHOLARS.—Section 419F(a) (20 
U.S.C. 1070d–36(a)) is amended by inserting ‘‘(or a home 
school, whether treated as a home school or a private school 
under State law)’’ after ‘‘public or private secondary 
school’’. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section 
419K (20 U.S.C. 1070d–41) is amended by striking 
‘‘$45,000,000 for fiscal year 1999’’ and all that follows 
through the period and inserting ‘‘such sums as may be nec-
essary for fiscal year 2008 and each of the 5 succeeding 
fiscal years.’’.
240 
SEC. 410. CHILD CARE ACCESS MEANS PARENTS IN 
SCHOOL. 
(a) MINIMUM GRANT.—Section 419N(b)(2)(B) (20 
U.S.C. 1070e(b)(2)(B)) is amended— 
(1) by striking ‘‘A grant’’ and inserting the fol-
lowing: 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), a grant’’; and 
(2) by adding at the end the following: 
‘‘(ii) INCREASE
TRIGGER.—For any 
fiscal year for which the amount appro-
priated under the authority of subsection 
(g) is equal to or greater than $20,000,000, 
a grant under this section shall be awarded 
in an amount that is not less than 
$30,000.’’. 
(b) DEFINITION OF LOW-INCOME STUDENT.—Para-
graph (7) of section 419N(b) (20 U.S.C. 1070e(b)) is amend-
ed to read as follows: 
‘‘(7) DEFINITION
OF
LOW-INCOME
STUDENT.— 
For the purpose of this section, the term ‘low-income 
student’ means a student who— 
‘‘(A) is eligible to receive a Federal Pell 
Grant for the award year for which the deter-
mination is made; or
241 
‘‘(B) would otherwise be eligible to receive a 
Federal Pell Grant for the award year for which 
the determination is made, except that the stu-
dent fails to meet the requirements of— 
‘‘(i) section 401(c)(1) because the stu-
dent is enrolled in a graduate or first pro-
fessional course of study; or 
‘‘(ii) section 484(a)(5) because the stu-
dent is in the United States for a tem-
porary purpose.’’. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section 
419N(g) (20 U.S.C. 1070e(g)) is amended by striking 
‘‘$45,000,000 for fiscal year 1999’’ and all that follows 
through the period and inserting ‘‘such sums as may be nec-
essary for fiscal year 2008 and each of the 5 succeeding 
fiscal years.’’. 
SEC. 411. LEARNING ANYTIME ANYWHERE PARTNERSHIPS. 
Subpart 8 of part A of title IV (20 U.S.C. 1070f et 
seq.) is repealed. 
PART B—FEDERAL FAMILY EDUCATION LOAN 
PROGRAM 
SEC. 421. FEDERAL PAYMENTS TO REDUCE STUDENT IN-
TEREST COSTS. 
Section 428 (as amended by this Act) (20 U.S.C. 1078) 
is further amended—
242 
(1) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (X), by striking 
‘‘and’’ after the semicolon; 
(ii) in subparagraph (Y)— 
(I) by striking clause (i) and in-
serting the following: 
‘‘(i) the lender shall determine the eli-
gibility of a borrower for a deferment de-
scribed in subparagraph (M)(i) based on— 
‘‘(I) receipt of a request for 
deferment from the borrower and docu-
mentation of the borrower’s eligibility 
for the deferment; 
‘‘(II) receipt of a newly completed 
loan application that documents the 
borrower’s eligibility for a deferment; 
‘‘(III) receipt of student status in-
formation received by the lender that 
the borrower is enrolled on at least a 
half-time basis; or 
‘‘(IV) the lender’s confirmation of 
the borrower’s half-time enrollment sta-
tus through use of the National Stu-
dent Loan Data System, if the con-
243 
firmation is requested by the institu-
tion of higher education.’’; and 
(II) in clause (ii), by striking the 
period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(Z) provides that the lender shall, at the 
time the lender grants a deferment to a borrower 
who received a loan under section 428H and is 
eligible 
for 
a 
deferment 
under 
section 
428(b)(1)(M), provide information to the bor-
rower to enable the borrower to understand the 
impact of capitalization of interest on the bor-
rower’s loan principal and total amount of in-
terest to be paid during the life of the loan.’’; 
(B) in paragraph (2)(F)— 
(i) in clause (i)— 
(I) in subclause (III), by striking 
‘‘and’’ after the semicolon; 
(II) in subclause (IV), by striking 
‘‘and’’ after the semicolon; and 
(III) by adding at the end the fol-
lowing:
244 
‘‘(V) the effective date of the trans-
fer; 
‘‘(VI) the date the current servicer 
will stop accepting payments; and 
‘‘(VII) the date at which the new 
servicer will begin accepting pay-
ments.’’; and 
(C) by striking paragraph (3) and inserting 
the following: 
‘‘(3) RESTRICTIONS
ON
INDUCEMENTS, 
PAY-
MENTS, MAILINGS, AND
ADVERTISING.—A guaranty 
agency shall not— 
‘‘(A) offer, directly or indirectly, premiums, 
payments, stock or other securities, prizes, travel, 
entertainment expenses, tuition repayment, or 
other inducements to— 
‘‘(i) any institution of higher edu-
cation or the employees of an institution of 
higher education in order to secure appli-
cants for loans made under this part; or 
‘‘(ii) any lender, or any agent, em-
ployee, or independent contractor of any 
lender or guaranty agency, in order to ad-
minister or market loans made under this 
part (other than a loan made under section
245 
428H or a loan made as part of the guar-
anty agency’s lender-of-last-resort program 
pursuant to section 439(q)) for the purpose 
of securing the designation of the guaranty 
agency as the insurer of such loans; 
‘‘(B) conduct unsolicited mailings, by postal 
or electronic means, of educational loan applica-
tion forms to students enrolled in secondary 
school or postsecondary educational institutions, 
or to the parents of such students, except that ap-
plications may be mailed, by postal or electronic 
means, to students or borrowers who have pre-
viously received loans guaranteed under this 
part by the guaranty agency; 
‘‘(C) perform, for an institution of higher 
education participating in a program under this 
title, any function that the institution is re-
quired to perform under part B, D, or G; 
‘‘(D) pay, on behalf of the institution of 
higher education, another person to perform any 
function that the institution of higher education 
is required to perform under part B, D, or G; or 
‘‘(E) conduct fraudulent or misleading ad-
vertising concerning loan availability, terms, or 
conditions.
246 
It shall not be a violation of this paragraph for a 
guaranty agency to provide technical assistance to in-
stitutions of higher education comparable to the tech-
nical assistance provided to institutions of higher 
education by the Department.’’; and 
(2) in subsection (c)— 
(A) in paragraph (2)(H)(i), by striking 
‘‘preclaims’’ and inserting ‘‘default aversion’’; 
and 
(B) in paragraph (3)(D)— 
(i) in clause (i), by striking ‘‘and’’ 
after the comma at the end; 
(ii) in clause (ii), by striking the pe-
riod and inserting a semicolon; and 
(iii) by inserting after clause (ii) the 
following: 
‘‘(iii) the lender shall, at the time of 
granting a borrower forbearance, provide 
information to the borrower to enable the 
borrower to understand the impact of cap-
italization of interest on the borrower’s loan 
principal and total amount of interest to be 
paid during the life of the loan; and 
‘‘(iv) the lender shall contact the bor-
rower not less often than once every 180
247 
days during the period of forbearance to in-
form the borrower of— 
‘‘(I) the amount of unpaid prin-
cipal and the amount of interest that 
has accrued since the last statement of 
such amounts provided to the borrower 
by the lender; 
‘‘(II) the fact that interest will ac-
crue on the loan for the period of for-
bearance; 
‘‘(III) the amount of interest that 
will be capitalized, and the date on 
which capitalization will occur; 
‘‘(IV) the ability of the borrower 
to pay the interest that has accrued be-
fore the interest is capitalized; and 
‘‘(V) the borrower’s option to dis-
continue the forbearance at any time.’’. 
SEC. 422. FEDERAL CONSOLIDATION LOANS. 
(a) AMENDMENTS.—Section 428C(b)(1) (20 U.S.C. 
1078–3(b)(1)) is amended— 
(1) in subparagraph (E), by striking ‘‘and’’ after 
the semicolon; 
(2) by redesignating subparagraph (F) as sub-
paragraph (H); and
248 
(3) by inserting after subparagraph (E) the fol-
lowing: 
‘‘(F) that the lender will disclose, in a clear 
and conspicuous manner, to borrowers who con-
solidate loans made under part E of this title— 
‘‘(i) that once the borrower adds the 
borrower’s Federal Perkins Loan to a Fed-
eral Consolidation Loan, the borrower will 
lose all interest-free periods that would have 
been available, such as those periods when 
no interest accrues on the Federal Perkins 
Loan while the borrower is enrolled in 
school at least half-time, during the grace 
period, and during periods when the bor-
rower’s student loan repayments are de-
ferred; 
‘‘(ii) that the borrower will no longer 
be eligible for loan cancellation of Federal 
Perkins Loans under any provision of sec-
tion 465; and 
‘‘(iii) the occupations described in sec-
tion 465(a)(2), individually and in detail, 
for which the borrower will lose eligibility 
for Federal Perkins Loan cancellation; and
249 
‘‘(G) that the lender shall, upon application 
for a consolidation loan, provide the borrower 
with information about the possible impact of 
loan consolidation, including— 
‘‘(i) the total interest to be paid and 
fees to be paid on the consolidation loan, 
and the length of repayment for the loan; 
‘‘(ii) whether consolidation would re-
sult in a loss of loan benefits under this 
part or part D, including loan forgiveness, 
cancellation, and deferment; 
‘‘(iii) in the case of a borrower that 
plans to include a Federal Perkins Loan 
under part E in the consolidation loan, that 
once the borrower adds the borrower’s Fed-
eral Perkins Loan to a consolidation loan— 
‘‘(I) the borrower will lose all in-
terest–free periods that would have 
been available for such loan under part 
E, such as the periods during which no 
interest accrues on the Federal Perkins 
Loan while the borrower is enrolled in 
school at least half-time, the grace pe-
riod, and the periods during which the
250 
borrower’s student loan repayments are 
deferred under section 464(c)(2); and 
‘‘(II) the borrower will no longer 
be eligible for cancellation of part or 
all of a Federal Perkins loan under 
section 465(a); 
‘‘(iv) the ability of the borrower to pre-
pay the consolidation loan, pay such loan 
on a shorter schedule, and to change repay-
ment plans; 
‘‘(v) that borrower benefit programs for 
a consolidation loan may vary among dif-
ferent lenders; 
‘‘(vi) the consequences of default on the 
consolidation loan; and 
‘‘(vii) that by applying for a consoli-
dation loan, the borrower is not obligated to 
agree to take the consolidation loan; and’’. 
(b) CONFORMING AMENDMENT.—Section 455(g) (20 
U.S.C. 1087e(g)) is amended by striking ‘‘428C(b)(1)(F)’’ 
and inserting ‘‘428C(b)(1)(H)’’. 
SEC. 423. DEFAULT REDUCTION PROGRAM. 
Section 428F (20 U.S.C. 1078–6) is amended— 
(1) in subsection (a)—
251 
(A) in paragraph (1)(A), by adding at the 
end the following: ‘‘Upon the sale of the loan to 
an eligible lender, the guaranty agency, and any 
prior holder of the loan, shall request any con-
sumer reporting agency to which the guaranty 
agency or holder, as applicable, reported the de-
fault of the loan, to remove the record of default 
from the borrower’s credit history.’’; and 
(B) by adding at the end the following: 
‘‘(5) LIMITATION.—A borrower may obtain the 
benefits available under this subsection with respect to 
rehabilitating a loan only one time per loan.’’; and 
(2) by adding at the end the following: 
‘‘(c) FINANCIAL
AND ECONOMIC LITERACY.—Where 
appropriate as determined by the institution of higher edu-
cation in which a borrower is enrolled, each program de-
scribed in subsection (b) shall include making available fi-
nancial and economic education materials for the borrower, 
including making the materials available before, during, or 
after rehabilitation of a loan.’’. 
SEC. 424. REPORTS TO CONSUMER REPORTING AGENCIES 
AND INSTITUTIONS OF HIGHER EDUCATION. 
Section 430A (20 U.S.C. 1080a) is amended—
252 
(1) in the section heading, by striking ‘‘CREDIT 
BUREAUS’’ and inserting ‘‘CONSUMER REPORT-
ING AGENCIES’’; and 
(2) in subsection (a)— 
(A) in the first sentence, by striking ‘‘with 
credit bureau organizations’’ and inserting 
‘‘with each consumer reporting agency that com-
piles and maintains files on consumers on a na-
tionwide basis (as defined in section 603(p) of 
the Fair Credit Reporting Act (15 U.S.C. 
1681a(p))’’; 
(B) by redesignating paragraphs (1), (2), 
and (3) as paragraphs (2), (4), and (5), respec-
tively; 
(C) by inserting before paragraph (2) (as 
redesignated by subparagraph (B)), the fol-
lowing: 
‘‘(1) the type of loan made, insured, or guaran-
teed under this title;’’; 
(D) by inserting after paragraph (2) (as re-
designated by subparagraph (B)), the following: 
‘‘(3) information concerning the repayment sta-
tus of the loan, which information shall be included 
in the file of the borrower, except that nothing in this 
subsection shall be construed to affect any otherwise
253 
applicable provision of the Fair Credit Reporting Act 
(15 U.S.C. 1681 et seq.)’’; 
(E) in paragraph (4) (as redesignated by 
subparagraph (B)), by striking ‘‘and’’ after the 
semicolon; 
(F) in paragraph (5) (as redesignated by 
subparagraph (B)), by striking the period and 
inserting ‘‘; and’’; and 
(G) by adding at the end the following: 
‘‘(6) any other information required to be re-
ported by Federal law.’’. 
SEC. 425. COMMON FORMS AND FORMATS. 
Section 432(m)(1)(D)(i) (20 U.S.C. 1082(m)(1)(D)(i)) 
is amended by adding at the end the following: ‘‘Unless oth-
erwise notified by the Secretary, each institution of higher 
education that participates in the program under this part 
or part D may use a master promissory note for loans 
under this part and part D.’’. 
SEC. 426. STUDENT LOAN INFORMATION BY ELIGIBLE 
LENDERS. 
Section 433 (20 U.S.C. 1083) is amended by adding 
at the end the following: 
‘‘(f) BORROWER INFORMATION AND PRIVACY.—Each 
entity participating in a program under this part that is 
subject to subtitle A of title V of the Gramm-Leach-Bliley
254 
Act (15 U.S.C. 6801 et seq.) shall only use, release, disclose, 
sell, transfer, or give student information, including the 
name, address, social security number, or amount borrowed 
by a borrower or a borrower’s parent, in accordance with 
the provisions of such subtitle. 
‘‘(g) LOAN BENEFIT DISCLOSURES.— 
‘‘(1) IN GENERAL.—Each eligible lender, holder, 
or servicer of a loan made, insured, or guaranteed 
under this part shall provide the borrower with infor-
mation on the loan benefit repayment options the 
lender, holder, or servicer offer, including information 
on reductions in interest rates— 
‘‘(A) by repaying the loan by automatic 
payroll or checking account deduction; 
‘‘(B) by completing a program of on-time 
repayment; and 
‘‘(C) under any other interest rate reduction 
program. 
‘‘(2) INFORMATION.—Such borrower information 
shall include— 
‘‘(A) any limitations on such options; 
‘‘(B) explicit information on the reasons a 
borrower may lose eligibility for such an option;
256 
lates to student loan programs authorized by this title. 
Nothing in this section shall be construed to prohibit a 
guaranty agency from using an existing program or exist-
ing materials to meet the requirement of this section. The 
activities described in this section shall be considered de-
fault reduction activities for the purposes of section 422.’’. 
SEC. 428. DEFINITION OF ELIGIBLE LENDER. 
Section 435(d) (20 U.S.C. 1085(d)) is amended— 
(1) in paragraph (5)— 
(A) by redesignating subparagraphs (C) 
and (D) as subparagraphs (H) and (I), respec-
tively; and 
(B) by striking subparagraphs (A) and (B) 
and inserting the following: 
‘‘(A) offered, directly or indirectly, points, 
premiums, payments (including payments for re-
ferrals and for processing or finder fees), prizes, 
stock or other securities, travel, entertainment ex-
penses, tuition repayment, the provision of infor-
mation technology equipment at below-market 
value, additional financial aid funds, or other 
inducements to any institution of higher edu-
cation or any employee of an institution of high-
er education in order to secure applicants for 
loans under this part;
257 
‘‘(B) conducted unsolicited mailings, by 
postal or electronic means, of student loan appli-
cation forms to students enrolled in secondary 
school or postsecondary institutions, or to par-
ents of such students, except that applications 
may be mailed, by postal or electronic means, to 
students or borrowers who have previously re-
ceived loans under this part from such lender; 
‘‘(C) entered into any type of consulting ar-
rangement, or other contract to provide services 
to a lender, with an employee who is employed 
in the financial aid office of an institution of 
higher education, or who otherwise has respon-
sibilities with respect to student loans or other fi-
nancial aid of the institution; 
‘‘(D) compensated an employee who is em-
ployed in the financial aid office of an institu-
tion of higher education, or who otherwise has 
responsibilities with respect to educational loans 
or other financial aid of the institution, and who 
is serving on an advisory board, commission, or 
group established by a lender or group of lenders 
for providing such service, except that the eligible 
lender may reimburse such employee for reason-
able expenses incurred in providing such service;
258 
‘‘(E) performed for an institution of higher 
education any function that the institution of 
higher education is required to carry out under 
part B, D, or G; 
‘‘(F) paid, on behalf of an institution of 
higher education, another person to perform any 
function that the institution of higher education 
is required to perform under part B, D, or G; 
‘‘(G) provided payments or other benefits to 
a student at an institution of higher education 
to act as the lender’s representative to secure ap-
plications under this title from individual pro-
spective borrowers, unless such student— 
‘‘(i) is also employed by the lender for 
other purposes; and 
‘‘(ii) made all appropriate disclosures 
regarding such employment;’’; and 
(2) by adding at the end the following: 
‘‘(8) SUNSET
OF
AUTHORITY
FOR
SCHOOL
AS 
LENDER PROGRAM.— 
‘‘(A) SUNSET.—The authority provided 
under subsection (d)(1)(E) for an institution to 
serve as an eligible lender, and under paragraph 
(7) for an eligible lender to serve as a trustee for 
an institution of higher education or an organi-
259 
zation affiliated with an institution of higher 
education, shall expire on June 30, 2012. 
‘‘(B) APPLICATION
TO
EXISTING
INSTITU-
TIONAL LENDERS.—An institution that was an 
eligible lender under this subsection, or an eligi-
ble lender that served as a trustee for an institu-
tion of higher education or an organization af-
filiated with an institution of higher education 
under paragraph (7), before June 30, 2012, 
shall— 
‘‘(i) not issue any new loans in such a 
capacity under part B after June 30, 2012; 
and 
‘‘(ii) continue to carry out the institu-
tion’s responsibilities for any loans issued 
by the institution under part B on or before 
June 30, 2012, except that, beginning on 
June 30, 2011, the eligible institution or 
trustee may, notwithstanding any other 
provision of this Act, sell or otherwise dis-
pose of such loans if all profits from the di-
vestiture are used for need-based grant pro-
grams at the institution. 
‘‘(C) AUDIT
REQUIREMENT.—All institu-
tions serving as an eligible lender under sub-
260 
section (d)(1)(E) and all eligible lenders serving 
as a trustee for an institution of higher edu-
cation or an organization affiliated with an in-
stitution of higher education shall annually com-
plete and submit to the Secretary a compliance 
audit to determine whether— 
‘‘(i) the institution or lender is using 
all proceeds from special allowance pay-
ments and interest payments from bor-
rowers, interest subsidies received from the 
Department, and any proceeds from the sale 
or other disposition of loans, for need-based 
aid programs, in accordance with section 
435(d)(2)(A)(viii); 
‘‘(ii) the institution or lender is using 
no more than a reasonable portion of the 
proceeds 
described 
in 
section 
435(d)(2)(A)(viii) for direct administrative 
expenses; and 
‘‘(iii) the institution or lender is en-
suring that the proceeds described in section 
435(d)(2)(A)(viii) are being used to supple-
ment, and not to supplant, non-Federal 
funds that would otherwise be used for need- 
based grant programs.’’.
261 
SEC. 429. DISCHARGE AND CANCELLATION RIGHTS IN 
CASES OF DISABILITY. 
(a) FFEL AND DIRECT LOANS.—Section 437(a) (20 
U.S.C. 1087) is amended— 
(1) by inserting ‘‘, or if a student borrower who 
has received such a loan is unable to engage in any 
substantial gainful activity by reason of any medi-
cally determinable physical or mental impairment 
that can be expected to result in death, has lasted for 
a continuous period of not less than 60 months, or 
can be expected to last for a continuous period of not 
less than 60 months’’ after ‘‘of the Secretary),’’; and 
(2) by adding at the end the following: ‘‘The Sec-
retary may develop such safeguards as the Secretary 
determines necessary to prevent fraud and abuse in 
the discharge of liability under this subsection. Not-
withstanding any other provision of this subsection, 
the Secretary may promulgate regulations to resume 
collection on loans discharged under this subsection in 
any case in which— 
‘‘(1) a borrower received a discharge of liability 
under this subsection and after the discharge the bor-
rower— 
‘‘(A) receives a loan made, insured or guar-
anteed under this title; or
262 
‘‘(B) has earned income in excess of the pov-
erty line; or 
‘‘(2) the Secretary determines necessary.’’. 
(b) PERKINS.—Section 464(c) (20 U.S.C. 1087dd(c)) 
is amended— 
(1) in paragraph (1)(F)— 
(A) by striking ‘‘or if he’’ and inserting ‘‘if 
the borrower’’; and 
(B) by inserting ‘‘, or if the borrower is un-
able to engage in any substantial gainful activ-
ity by reason of any medically determinable 
physical or mental impairment that can be ex-
pected to result in death, has lasted for a contin-
uous period of not less than 60 months, or can 
be expected to last for a continuous period of not 
less than 60 months’’ after ‘‘the Secretary’’; and 
(2) by adding at the end the following: 
‘‘(8) The Secretary may develop such additional 
safeguards as the Secretary determines necessary to 
prevent fraud and abuse in the cancellation of liabil-
ity under paragraph (1)(F). Notwithstanding para-
graph (1)(F), the Secretary may promulgate regula-
tions to resume collection on loans cancelled under 
paragraph (1)(F) in any case in which—
263 
‘‘(A) a borrower received a cancellation of 
liability under paragraph (1)(F) and after the 
cancellation the borrower— 
‘‘(i) receives a loan made, insured or 
guaranteed under this title; or 
‘‘(ii) has earned income in excess of the 
poverty line; or 
‘‘(B) the Secretary determines necessary.’’. 
(c) EFFECTIVE DATE.—The amendments made by sub-
sections (a) and (b) shall take effect on July 1, 2008. 
PART C—FEDERAL WORK-STUDY PROGRAMS 
SEC. 441. AUTHORIZATION OF APPROPRIATIONS. 
Section 441(b) (42 U.S.C. 2751(b)) is amended by 
striking ‘‘$1,000,000,000 for fiscal year 1999’’ and all that 
follows through the period and inserting ‘‘such sums as may 
be necessary for fiscal year 2008 and each of the 5 suc-
ceeding fiscal years.’’. 
SEC. 442. ALLOWANCE FOR BOOKS AND SUPPLIES. 
Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is 
amended by striking ‘‘$450’’ and inserting ‘‘$600’’. 
SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS. 
Section 443(b)(2) (42 U.S.C. 2753(b)(2)) is amend-
ed— 
(1) by striking subparagraph (A);
264 
(2) by redesignating subparagraphs (B) and (C) 
as subparagraphs (A) and (B), respectively; and 
(3) in subparagraph (A) (as redesignated by 
paragraph (2)), by striking ‘‘this subparagraph if’’ 
and all that follows through ‘‘institution;’’ and insert-
ing ‘‘this subparagraph if— 
‘‘(i) the Secretary determines that en-
forcing this subparagraph would cause 
hardship for students at the institution; or 
‘‘(ii) the institution certifies to the Sec-
retary that 15 percent or more of its total 
full-time enrollment participates in commu-
nity service activities described in section 
441(c) or tutoring and literacy activities 
described in subsection (d) of this section;’’. 
SEC. 444. JOB LOCATION AND DEVELOPMENT PROGRAMS. 
Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended 
by striking ‘‘$50,000’’ and inserting ‘‘$75,000’’. 
SEC. 445. WORK COLLEGES. 
Section 448 (42 U.S.C. 2756b) is amended— 
(1) in subsection (a), by striking ‘‘work-learn-
ing’’ and inserting ‘‘work-learning-service’’; 
(2) in subsection (b)—
265 
(A) in paragraph (1), by striking ‘‘under 
subsection (f)’’ and inserting ‘‘for this section 
under section 441(b)’’; and 
(B) in paragraph (2)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘pursuant to sub-
section (f)’’ and inserting ‘‘for this section 
under section 441(b)’’; 
(ii) in subparagraph (A), by striking 
‘‘work-learning program’’ and inserting 
‘‘comprehensive work-learning-service pro-
gram’’; 
(iii) by redesignating subparagraphs 
(C) through (F) as subparagraphs (D) 
through (G), respectively; 
(iv) by inserting after subparagraph 
(B) the following: 
‘‘(C) support existing and new model stu-
dent volunteer community service projects associ-
ated with local institutions of higher education, 
such as operating drop-in resource centers that 
are staffed by students and that link people in 
need with the resources and opportunities nec-
essary to become self-sufficient; and’’;
266 
(v) in subparagraph (E) (as redesig-
nated by clause (iii)), by striking ‘‘work- 
learning’’ each place the term occurs and 
inserting ‘‘work-learning-service’’; and 
(vi) in subparagraph (F) (as redesig-
nated by clause (iii)), by striking ‘‘work 
service learning’’ and inserting ‘‘work- 
learning-service’’; 
(3) in subsection (c), by striking ‘‘by subsection 
(f) to use funds under subsection (b)(1)’’ and insert-
ing ‘‘for this section under section 441(b) or to use 
funds under subsection (b)(1),’’; 
(4) in subsection (e)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by inserting 
‘‘4-year, degree-granting’’ after ‘‘nonprofit’’; 
(ii) in subparagraph (B), by striking 
‘‘work-learning’’ and inserting ‘‘work-learn-
ing-service’’; 
(iii) by striking subparagraph (C) and 
inserting the following: 
‘‘(C) requires all resident students, includ-
ing at least 1⁄2 of all resident students who are 
enrolled on a full-time basis, to participate in a 
comprehensive work-learning-service program for
267 
not less than 5 hours each week, or not less than 
80 hours during each period of enrollment except 
summer school, unless the student is engaged in 
a study abroad or externship program that is or-
ganized or approved by the institution; and’’; 
and 
(iv) in subparagraph (D), by striking 
‘‘work-learning’’ and inserting ‘‘work-learn-
ing-service’’; and 
(B) by striking paragraph (2) and inserting 
the following: 
‘‘(2) the term ‘comprehensive work-learning-serv-
ice program’ means a student work-learning-service 
program that— 
‘‘(A) is an integral and stated part of the 
institution’s educational philosophy and pro-
gram; 
‘‘(B) requires participation of all resident 
students for enrollment and graduation; 
‘‘(C) includes learning objectives, evalua-
tion, and a record of work performance as part 
of the student’s college record; 
‘‘(D) provides programmatic leadership by 
college personnel at levels comparable to tradi-
tional academic programs;
268 
‘‘(E) recognizes the educational role of 
work-learning-service supervisors; and 
‘‘(F) includes consequences for nonperform-
ance or failure in the work-learning-service pro-
gram similar to the consequences for failure in 
the regular academic program.’’; and 
(5) by striking subsection (f). 
PART D—FEDERAL PERKINS LOANS 
SEC. 451. PROGRAM AUTHORITY. 
Section 461(b)(1) (20 U.S.C. 1087aa(b)(1)) is amend-
ed by striking ‘‘$250,000,000 for fiscal year 1999’’ and all 
that follows through the period and inserting ‘‘such sums 
as may be necessary for each of the fiscal years 2008 
through 2012.’’. 
SEC. 451A. ALLOWANCE FOR 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. 451B. PERKINS LOAN FORBEARANCE. 
Section 464 (20 U.S.C. 1087dd) is amended— 
(1) in subsection (e)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘, upon written request,’’ and insert-
ing ‘‘, as documented in accordance with para-
graph (2),’’;
271 
(2) in paragraph (3)(A)— 
(A) in clause (i)— 
(i) by inserting ‘‘(D),’’ after ‘‘(C),’’; 
and 
(ii) by striking ‘‘or (I)’’ and inserting 
‘‘(I), (J), (K), or (L)’’; 
(B) in clause (ii), by inserting ‘‘or’’ after 
the semicolon; 
(C) by striking clause (iii); and 
(D) by redesignating clause (iv) as clause 
(iii). 
PART E—NEED ANALYSIS 
SEC. 461. COST OF ATTENDANCE. 
(a) 
AMENDMENTS.—Section 
472(3) 
(20 
U.S.C. 
1087kk(3)) is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ after 
the semicolon; 
(2) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(3) by inserting after subparagraph (B), as 
amended by paragraph (1), the following: 
‘‘(C) for students who live in housing lo-
cated on a military base or for which a basic al-
lowance is provided under section 403(b) of title 
37, United States Code, shall be an allowance
272 
based on the expenses reasonably incurred by 
such students for board but not for room; and’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on July 1, 2008. 
SEC. 462. DEFINITIONS. 
(a) AMENDMENT.—Section 480(b)(6) (20 U.S.C. 
1087vv(b)(6)) is amended by inserting ‘‘, except that the 
value of on-base military housing or the value of basic al-
lowance for housing determined under section 403(b) of title 
37, United States Code, received by the parents, in the case 
of a dependent student, or the student or student’s spouse, 
in the case of an independent student, shall be excluded’’ 
before the semicolon. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on July 1, 2008. 
PART F—GENERAL PROVISIONS RELATING TO 
STUDENT ASSISTANCE 
SEC. 471. DEFINITIONS. 
Section 481(a)(2)(B) (20 U.S.C. 1088(a)(2)(B)) is 
amended by inserting ‘‘and that measures program length 
in credit hours or clock hours’’ after ‘‘baccalaureate degree’’. 
SEC. 472. COMPLIANCE CALENDAR. 
Section 482 (20 U.S.C. 1089) is amended by adding 
at the end the following:
273 
‘‘(e) COMPLIANCE CALENDAR.—Prior to the beginning 
of each award year, the Secretary shall provide to institu-
tions of higher education a list of all the reports and disclo-
sures required under this Act. The list shall include— 
‘‘(1) the date each report or disclosure is required 
to be completed and to be submitted, made available, 
or disseminated; 
‘‘(2) the required recipients of each report or dis-
closure; 
‘‘(3) any required method for transmittal or dis-
semination of each report or disclosure; 
‘‘(4) a description of the content of each report 
or disclosure sufficient to allow the institution to 
identify the appropriate individuals to be assigned 
the responsibility for such report or disclosure; 
‘‘(5) references to the statutory authority, appli-
cable regulations, and current guidance issued by the 
Secretary regarding each report or disclosure; and 
‘‘(6) any other information which is pertinent to 
the content or distribution of the report or disclo-
sure.’’. 
SEC. 473. FORMS AND REGULATIONS. 
Section 483 (20 U.S.C. 1090) is amended— 
(1) by striking subsections (a) and (b) and in-
serting the following:
274 
‘‘(a) COMMON FINANCIAL AID FORM DEVELOPMENT 
AND PROCESSING.— 
‘‘(1) IN GENERAL.— 
‘‘(A) COMMON FORMS.—The Secretary, in 
cooperation with representatives of agencies and 
organizations involved in student financial as-
sistance, shall produce, distribute, and process 
free of charge common financial reporting forms 
as described in this subsection to be used to de-
termine the need and eligibility of a student for 
financial assistance under parts A through E of 
this title (other than under subpart 4 of part A). 
The forms shall be made available to applicants 
in both paper and electronic formats. 
‘‘(B) FAFSA.—The common financial re-
porting forms described in this subsection (ex-
cluding the form described in paragraph (2)(B)), 
shall be referred to collectively as the ‘Free Ap-
plication for Federal Student Aid’, or ‘FAFSA’. 
‘‘(2) PAPER FORMAT.— 
‘‘(A) IN GENERAL.—The Secretary shall en-
courage applicants to file the electronic versions 
of the forms described in paragraph (3), but 
shall develop, make available, and process—
275 
‘‘(i) a paper version of EZ FAFSA, as 
described in subparagraph (B); and 
‘‘(ii) a paper version of the other forms 
described in this subsection, in accordance 
with subparagraph (C), for any applicant 
who does not meet the requirements of or 
does not wish to use the process described in 
subparagraph (B). 
‘‘(B) EZ FAFSA.— 
‘‘(i) IN GENERAL.—The Secretary shall 
develop and use, after appropriate field test-
ing, a simplified paper application form for 
applicants meeting the requirements of sec-
tion 479(c), which form shall be referred to 
as the ‘EZ FAFSA’. 
‘‘(ii) REQUIRED FEDERAL DATA ELE-
MENTS.—The Secretary shall include on the 
EZ FAFSA only the data elements required 
to determine student eligibility and whether 
the applicant meets the requirements of sec-
tion 479(c). 
‘‘(iii) REQUIRED
STATE
DATA
ELE-
MENTS.—The Secretary shall include on the 
EZ FAFSA such data items as may be nec-
essary to award State financial assistance,
277 
ing out the printing of the full paper 
version of FAFSA and moving applicants 
to the electronic versions of FAFSA, to im-
prove access to the electronic versions for 
applicants meeting the requirements of sec-
tion 479(c). 
‘‘(3) ELECTRONIC VERSIONS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
produce, make available through a broadly avail-
able website, and process electronic versions of 
the FAFSA and the EZ FAFSA. 
‘‘(B) MINIMUM QUESTIONS.—The Secretary 
shall use all available technology to ensure that 
a student using an electronic version of the 
FAFSA under this paragraph answers only the 
minimum number of questions necessary. 
‘‘(C) REDUCED REQUIREMENTS.—The Sec-
retary shall enable applicants who meet the re-
quirements of subsection (b) or (c) of section 479 
to provide information on the electronic version 
of the FAFSA only for the data elements re-
quired to determine student eligibility and 
whether the applicant meets the requirements of 
subsection (b) or (c) of section 479.
278 
‘‘(D) STATE DATA.—The Secretary shall in-
clude on the electronic version of the FAFSA the 
questions needed to determine whether the appli-
cant is eligible for State financial assistance, as 
provided under paragraph (5), except that the 
Secretary shall not— 
‘‘(i) require applicants to complete 
data required by any State other than the 
applicant’s State of residence; and 
‘‘(ii) include a State’s data if such 
State does not permit its applicants for 
State assistance to use the electronic version 
of the FAFSA described in this paragraph. 
‘‘(E) FREE AVAILABILITY AND DATA DIS-
TRIBUTION.—The provisions of paragraphs (6) 
and (10) shall apply to the electronic version of 
the FAFSA. 
‘‘(F) USE OF FORMS.—Nothing in this sub-
section shall be construed to prohibit the use of 
the electronic versions of the forms developed by 
the Secretary pursuant to this paragraph by an 
eligible institution, eligible lender, a guaranty 
agency, a State grant agency, a private com-
puter software provider, a consortium of such en-
tities, or such other entity as the Secretary may
279 
designate. Data collected by the electronic 
versions of such forms shall be used only for the 
application, award, and administration of aid 
awarded under this title, State aid, or aid 
awarded by eligible institutions or such entities 
as the Secretary may designate. No data col-
lected by such electronic versions of the forms 
shall be used for making final aid awards under 
this title until such data have been processed by 
the Secretary or a contractor or designee of the 
Secretary, except as may be permitted under this 
title. 
‘‘(G) PRIVACY.—The Secretary shall ensure 
that data collection under this paragraph com-
plies with section 552a of title 5, United States 
Code, and that any entity using an electronic 
version of a form developed by the Secretary 
under this paragraph shall maintain reasonable 
and appropriate administrative, technical, and 
physical safeguards to ensure the integrity and 
confidentiality of the information, and to protect 
against security threats, or unauthorized uses or 
disclosures of the information provided on the 
electronic version of the form.
280 
‘‘(H) SIGNATURE.—Notwithstanding any 
other provision of this Act, the Secretary may 
permit an electronic version of a form developed 
under this paragraph to be submitted without a 
signature, if a signature is subsequently sub-
mitted by the applicant or if the applicant uses 
a personal identification number provided by the 
Secretary under subparagraph (I). 
‘‘(I) PERSONAL IDENTIFICATION NUMBERS 
AUTHORIZED.—The Secretary is authorized to 
assign to an applicant a personal identification 
number— 
‘‘(i) to enable the applicant to use such 
number as a signature for purposes of com-
pleting an electronic version of a form de-
veloped under this paragraph; and 
‘‘(ii) for any purpose determined by 
the Secretary to enable the Secretary to 
carry out this title. 
‘‘(J) PERSONAL
IDENTIFICATION
NUMBER 
IMPROVEMENT.—Not later than 180 days after 
the date of enactment of the Higher Education 
Amendments of 2007, the Secretary shall imple-
ment a real-time data match between the Social 
Security Administration and the Department to
281 
minimize the time required for an applicant to 
obtain a personal identification number when 
applying for aid under this title through an elec-
tronic version of a form developed under this 
paragraph. 
‘‘(4) STREAMLINED REAPPLICATION PROCESS.— 
‘‘(A) IN GENERAL.—The Secretary shall de-
velop streamlined paper and electronic re-
application forms and processes for an applicant 
who applies for financial assistance under this 
title in the next succeeding academic year subse-
quent to an academic year for which such appli-
cant applied for financial assistance under this 
title. 
‘‘(B) UPDATING OF DATA ELEMENTS.—The 
Secretary shall determine, in cooperation with 
States, institutions of higher education, agencies, 
and organizations involved in student financial 
assistance, the data elements that may be trans-
ferred from the previous academic year’s appli-
cation and those data elements that shall be up-
dated. 
‘‘(C) REDUCED DATA AUTHORIZED.—Noth-
ing in this title shall be construed as limiting the
282 
authority of the Secretary to reduce the number 
of data elements required of reapplicants. 
‘‘(D) ZERO FAMILY CONTRIBUTION.—Appli-
cants determined to have a zero family contribu-
tion pursuant to section 479(c) shall not be re-
quired to provide any financial data in a re-
application form, except data that are necessary 
to determine eligibility under such section. 
‘‘(5) STATE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraphs (2)(B)(iii), (3)(D), and (4)(B), the 
Secretary shall include on the forms developed 
under this subsection, such State-specific data 
items as the Secretary determines are necessary 
to meet State requirements for need-based State 
aid. Such items shall be selected in consultation 
with State agencies in order to assist in the 
awarding of State financial assistance in accord-
ance with the terms of this subsection. The num-
ber of such data items shall not be less than the 
number included on the common financial re-
porting form for the 2005–2006 award year un-
less a State notifies the Secretary that the State 
no longer requires those data items for the dis-
tribution of State need-based aid.
283 
‘‘(B) ANNUAL REVIEW.—The Secretary shall 
conduct an annual review to determine— 
‘‘(i) which data items each State re-
quires to award need-based State aid; and 
‘‘(ii) if the State will permit an appli-
cant to file a form described in paragraph 
(2)(B) or (3)(C). 
‘‘(C) USE
OF
SIMPLIFIED
APPLICATION 
FORMS ENCOURAGED.—The Secretary shall en-
courage States to take such steps as are necessary 
to encourage the use of simplified forms under 
this subsection, including those forms described 
in paragraphs (2)(B) and (3)(C), for applicants 
who meet the requirements of subsection (b) or 
(c) of section 479. 
‘‘(D) CONSEQUENCES IF STATE DOES NOT 
ACCEPT SIMPLIFIED FORMS.—If a State does not 
permit an applicant to file a form described in 
paragraph (2)(B) or (3)(C) for purposes of deter-
mining eligibility for State need-based financial 
aid, the Secretary may determine that State-spe-
cific questions for such State will not be included 
on a form described in paragraph (2)(B) or 
(3)(B). If the Secretary makes such determina-
284 
tion, the Secretary shall advise the State of the 
Secretary’s determination. 
‘‘(E) LACK
OF
STATE
RESPONSE
TO
RE-
QUEST FOR INFORMATION.—If a State does not 
respond to the Secretary’s request for informa-
tion under subparagraph (B), the Secretary 
shall— 
‘‘(i) permit residents of that State to 
complete simplified forms under paragraphs 
(2)(B) and (3)(B); and 
‘‘(ii) not require any resident of such 
State to complete any data items previously 
required by that State under this section. 
‘‘(F) RESTRICTION.—The Secretary shall 
not require applicants to complete any financial 
or non-financial data items that are not re-
quired— 
‘‘(i) by the applicant’s State; or 
‘‘(ii) by the Secretary. 
‘‘(6) CHARGES TO STUDENTS AND PARENTS FOR 
USE OF FORMS PROHIBITED.—The need and eligi-
bility of a student for financial assistance under 
parts A through E (other than under subpart 4 of 
part A) may be determined only by using a form de-
veloped by the Secretary under this subsection. Such
285 
forms shall be produced, distributed, and processed by 
the Secretary, and no parent or student shall be 
charged a fee by the Secretary, a contractor, a third- 
party servicer or private software provider, or any 
other public or private entity for the collection, proc-
essing, or delivery of financial aid through the use of 
such forms. No data collected on a paper or electronic 
version of a form developed under this subsection, or 
other document that was created to replace, or used 
to complete, such a form, and for which a fee was 
paid, shall be used. 
‘‘(7) RESTRICTIONS ON USE OF PIN.—No person, 
commercial entity, or other entity shall request, ob-
tain, or utilize an applicant’s personal identification 
number assigned under paragraph (3)(I) for purposes 
of submitting a form developed under this subsection 
on an applicant’s behalf. 
‘‘(8) APPLICATION
PROCESSING
CYCLE.—The 
Secretary shall enable students to submit forms devel-
oped under this subsection and initiate the processing 
of such forms under this subsection, as early as prac-
ticable prior to January 1 of the student’s planned 
year of enrollment. 
‘‘(9) EARLY ESTIMATES OF EXPECTED FAMILY 
CONTRIBUTIONS.—The Secretary shall permit an ap-
286 
plicant to complete a form described in this subsection 
in the years prior to enrollment in order to obtain 
from the Secretary a nonbinding estimate of the ap-
plicant’s expected family contribution, computed in 
accordance with part F. Such applicant shall be per-
mitted to update information submitted on a form de-
scribed in this subsection using the process required 
under paragraph (4). 
‘‘(10) DISTRIBUTION OF DATA.—Institutions of 
higher education, guaranty agencies, and States shall 
receive, without charge, the data collected by the Sec-
retary using a form developed under this subsection 
for the purposes of processing loan applications and 
determining need and eligibility for institutional and 
State financial aid awards. Entities designated by 
institutions of higher education, guaranty agencies, or 
States to receive such data shall be subject to all the 
requirements of this section, unless such requirements 
are waived by the Secretary. 
‘‘(11) THIRD
PARTY
SERVICERS
AND
PRIVATE 
SOFTWARE
PROVIDERS.—To the extent practicable 
and in a timely manner, the Secretary shall provide, 
to private organizations and consortia that develop 
software used by institutions of higher education for 
the administration of funds under this title, all the
287 
necessary specifications that the organizations and 
consortia must meet for the software the organizations 
and consortia develop, produce, and distribute (in-
cluding any diskette, modem, or network communica-
tions) which are so used. The specifications shall con-
tain record layouts for required data. The Secretary 
shall develop in advance of each processing cycle an 
annual schedule for providing such specifications. The 
Secretary, to the extent practicable, shall use multiple 
means of providing such specifications, including con-
ferences and other meetings, outreach, and technical 
support mechanisms (such as training and printed 
reference materials). The Secretary shall, from time to 
time, solicit from such organizations and consortia 
means of improving the support provided by the Sec-
retary. 
‘‘(12) PARENT’S SOCIAL SECURITY NUMBER AND 
BIRTH DATE.—The Secretary is authorized to include 
space on the forms developed under this subsection for 
the social security number and birth date of parents 
of dependent students seeking financial assistance 
under this title.’’; 
(2) by redesignating subsections (c) through (e) 
(as amended by section 101(b)(11)) as subsections (b) 
through (d), respectively;
288 
(3) in subsection (c) (as redesignated by para-
graph (2)), by striking ‘‘that is authorized’’ and all 
that follows through the period at the end and insert-
ing ‘‘or other appropriate provider of technical assist-
ance and information on postsecondary educational 
services that is authorized under section 663(a) of the 
Individuals with Disabilities Education Act. Not 
later than 2 years after the date of enactment of the 
Higher Education Amendments of 2007, the Secretary 
shall test and implement, to the extent practicable, a 
toll-free telephone based system to permit applicants 
who meet the requirements of 479(c) to submit an ap-
plication over such system.’’; 
(4) by striking subsection (d) (as redesignated by 
paragraph (2)) and inserting the following: 
‘‘(d) ASSISTANCE IN PREPARATION OF FINANCIAL AID 
APPLICATION.— 
‘‘(1) 
PREPARATION
AUTHORIZED.—Notwith-
standing any provision of this Act, an applicant may 
use a preparer for consultative or preparation services 
for the completion of a form developed under sub-
section (a) if the preparer satisfies the requirements 
of this subsection. 
‘‘(2) PREPARER IDENTIFICATION REQUIRED.—If 
an applicant uses a preparer for consultative or prep-
289 
aration services for the completion of a form devel-
oped under subsection (a), the preparer shall include 
the name, signature, address or employer’s address, 
social security number or employer identification 
number, and organizational affiliation of the pre-
parer on the applicant’s form. 
‘‘(3) ADDITIONAL REQUIREMENTS.—A preparer 
that provides consultative or preparation services 
pursuant to this subsection shall— 
‘‘(A) clearly inform each individual upon 
initial contact, including contact through the 
Internet or by telephone, that the FAFSA and 
EZ FAFSA may be completed for free via paper 
or electronic versions of the forms that are pro-
vided by the Secretary; 
‘‘(B) include in any advertising clear and 
conspicuous information that the FAFSA and 
EZ FAFSA may be completed for free via paper 
or electronic versions of the forms that are pro-
vided by the Secretary; 
‘‘(C) if advertising or providing any infor-
mation on a website, or if providing services 
through a website, include on the website a link 
to the website described in subsection (a)(3) that
290 
provides the electronic versions of the forms de-
veloped under subsection (a); 
‘‘(D) refrain from producing or dissemi-
nating any form other than the forms developed 
by the Secretary under subsection (a); and 
‘‘(E) not charge any fee to any individual 
seeking services who meets the requirements of 
subsection (b) or (c) of section 479. 
‘‘(4) SPECIAL RULE.—Nothing in this Act shall 
be construed to limit preparers of the financial re-
porting forms required to be made under this title 
that meet the requirements of this subsection from col-
lecting source information from a student or parent, 
including Internal Revenue Service tax forms, in pro-
viding consultative and preparation services in com-
pleting the forms.’’; and 
(5) by adding at the end the following: 
‘‘(e) EARLY APPLICATION AND AWARD DEMONSTRA-
TION PROGRAM.— 
‘‘(1) PURPOSE.—The purpose of the demonstra-
tion program implemented under this subsection is to 
determine the feasibility of implementing a com-
prehensive early application and notification system 
for all dependent students and to measure the benefits 
and costs of such a system.
291 
‘‘(2) PROGRAM AUTHORIZED.—Not later than 2 
years after the date of enactment of the Higher Edu-
cation Amendments of 2007, the Secretary shall im-
plement an early application demonstration program 
enabling dependent students who wish to participate 
in the program— 
‘‘(A) to complete an application under this 
subsection during the academic year that is 2 
years prior to the year such students plan to en-
roll in an institution of higher education; and 
‘‘(B) based on the application described in 
subparagraph (A), to obtain, not later than 1 
year prior to the year of the students’ planned 
enrollment, information on eligibility for Federal 
Pell Grants, Federal student loans under this 
title, and State and institutional financial aid 
for the student’s first year of enrollment in an 
the institution of higher education. 
‘‘(3) EARLY APPLICATION AND AWARD.—For all 
dependent students selected for participation in the 
demonstration program who submit a completed 
FAFSA, or, as appropriate, an EZ FAFSA, 2 years 
prior to the year such students plan to enroll in an 
institution of higher education, the Secretary shall,
292 
not later than 1 year prior to the year of such 
planned enrollment— 
‘‘(A) provide each student who meets the re-
quirements under section 479(c) with a deter-
mination of such student’s— 
‘‘(i) expected family contribution for 
the first year of the student’s enrollment in 
an institution of higher education; and 
‘‘(ii) Federal Pell Grant award for the 
first such year, based on the maximum Fed-
eral Pell Grant award at the time of appli-
cation; 
‘‘(B) provide each student who does not 
meet the requirements under section 479(c) with 
an estimate of such student’s— 
‘‘(i) expected family contribution for 
the first year of the student’s planned en-
rollment; and 
‘‘(ii) Federal Pell Grant award for the 
first such year, based on the maximum Fed-
eral Pell Grant award at the time of appli-
cation; and 
‘‘(C) remind the students of the need to up-
date the students’ information during the cal-
endar year of enrollment using the expedited re-
293 
application process provided for in subsection 
(a)(4). 
‘‘(4) PARTICIPANTS.—The Secretary shall in-
clude, as participants in the demonstration pro-
gram— 
‘‘(A) States selected through the application 
process described in paragraph (5); 
‘‘(B) institutions of higher education within 
the selected States that are interested in partici-
pating in the demonstration program, and that 
can make estimates or commitments of institu-
tional student financial aid, as appropriate, to 
students the year before the students’ planned en-
rollment date; and 
‘‘(C) secondary schools within the selected 
States that are interested in participating in the 
demonstration program, and can commit re-
sources to— 
‘‘(i) advertising the availability of the 
program; 
‘‘(ii) identifying students who might be 
interested in participating in the program; 
‘‘(iii) encouraging such students to 
apply; and
294 
‘‘(iv) participating in the evaluation of 
the program. 
‘‘(5) APPLICATIONS.—States that are interested 
in participating in the demonstration program shall 
submit an application, to the Secretary at such time, 
in such form, and containing such information as the 
Secretary shall require. The application shall in-
clude— 
‘‘(A) information on the amount of the 
State’s need-based student financial assistance 
available, and the eligibility criteria for receiv-
ing such assistance; 
‘‘(B) a commitment to make, not later than 
the year before the dependent students partici-
pating in the demonstration program plan to en-
roll in an institution of higher education— 
‘‘(i) determinations of State financial 
aid awards to dependent students partici-
pating in the program who meet the re-
quirements of section 479(c); and 
‘‘(ii) estimates of State financial aid 
awards to other dependent students partici-
pating in the program; 
‘‘(C) a plan for recruiting institutions of 
higher education and secondary schools with dif-
295 
ferent demographic characteristics to participate 
in the program; 
‘‘(D) a plan for selecting institutions of 
higher education and secondary schools to par-
ticipate in the program that— 
‘‘(i) demonstrate a commitment to en-
couraging students to submit a FAFSA, or, 
as appropriate, an EZ FAFSA, 2 years be-
fore the students’ planned date of enrollment 
in an institution of higher education; 
‘‘(ii) serve different populations of stu-
dents; 
‘‘(iii) in the case of institutions of 
higher education— 
‘‘(I) to the extent possible, are of 
varying types and control; and 
‘‘(II) commit to making, not later 
than the year prior to the year that de-
pendent students participating in the 
demonstration program plan to enroll 
in the institution— 
‘‘(aa) institutional awards to 
participating dependent students 
who meet the requirements of sec-
tion 479(c);
296 
‘‘(bb) estimates of institu-
tional awards to other partici-
pating dependent students; and 
‘‘(cc) expected or tentative 
awards of grants or other finan-
cial aid available under this title 
(including supplemental grants 
under subpart 3 of part A), for all 
participating dependent students, 
along with information on State 
awards, as provided to the insti-
tution by the State; 
‘‘(E) a commitment to participate in the 
evaluation conducted by the Secretary; and 
‘‘(F) such other information as the Sec-
retary may require. 
‘‘(6) SPECIAL PROVISIONS.— 
‘‘(A) DISCRETION OF STUDENT FINANCIAL 
AID ADMINISTRATORS.—A financial aid admin-
istrator at an institution of higher education 
participating in a demonstration program under 
this subsection may use the discretion provided 
under section 479A as necessary in awarding fi-
nancial aid to students participating in the 
demonstration program.
297 
‘‘(B) WAIVERS.—The Secretary is author-
ized to waive, for an institution participating in 
the demonstration program, any requirements 
under the title, or regulations prescribed under 
this title, that would make the demonstration 
program unworkable, except that the Secretary 
shall not waive any provisions with respect to 
the maximum award amounts for grants and 
loans under this title. 
‘‘(7) OUTREACH.—The Secretary shall make ap-
propriate efforts in order to notify States, institutions 
of higher education, and secondary schools of the dem-
onstration program. 
‘‘(8) EVALUATION.—The Secretary shall conduct 
a rigorous evaluation of the demonstration program 
to measure the program’s benefits and adverse effects, 
as the benefits and effects relate to the purpose of the 
program described in paragraph (1). In conducting 
the evaluation, the Secretary shall— 
‘‘(A) identify whether receiving financial 
aid awards or estimates, as applicable, 1 year 
prior to the year in which the student plans to 
enroll in an institution of higher education, has 
a positive impact on the higher education aspi-
rations and plans of such student;
298 
‘‘(B) measure the extent to which using a 
student’s income information from the year that 
is 2 years prior to the student’s planned enroll-
ment date had an impact on the ability of States 
and institutions to make financial aid awards 
and commitments; 
‘‘(C) determine what operational changes 
would be required to implement the program on 
a larger scale; 
‘‘(D) identify any changes to Federal law 
that would be necessary to implement the pro-
gram on a permanent basis; and 
‘‘(E) identify the benefits and adverse effects 
of providing early awards or estimates on pro-
gram costs, program operations, program integ-
rity, award amounts, distribution, and delivery 
of aid. 
‘‘(9) CONSULTATION.—The Secretary shall con-
sult, as appropriate, with the Advisory Committee on 
Student Financial Assistance established under sec-
tion 491 on the design, implementation, and evalua-
tion of the demonstration program. 
‘‘(f) USE OF IRS DATA AND REDUCED INCOME AND 
ASSET INFORMATION
TO DETERMINE ELIGIBILITY
FOR 
STUDENT FINANCIAL AID.—
299 
‘‘(1) FORMATION OF STUDY GROUP.—Not later 
than 90 days after the date of enactment of the High-
er Education Amendments of 2007, the Comptroller 
General of the United States and the Secretary of 
Education shall convene a study group whose mem-
bership shall include the Secretary of the Treasury, 
the Director of the Office of Management and Budget, 
the Director of the Congressional Budget Office, rep-
resentatives of institutions of higher education with 
expertise in Federal and State financial aid assist-
ance, State chief executive officers of higher education 
with a demonstrated commitment to simplifying the 
FAFSA, and such other individuals as the Comp-
troller General and the Secretary of Education may 
designate. 
‘‘(2) STUDY REQUIRED.—The Comptroller Gen-
eral and the Secretary, in consultation with the study 
group convened under paragraph (1), shall design 
and conduct a study to identify and evaluate the 
means of simplifying the process of applying for Fed-
eral financial aid available under this title. The 
study shall focus on developing alternative approaches 
for calculating the expected family contribution that 
use substantially less income and asset data than the 
methodology currently used, as of the time of the
300 
study, for determining the expected family contribu-
tion. 
‘‘(3) OBJECTIVES OF STUDY.—The objectives of 
the study required under paragraph (2) are— 
‘‘(A) to shorten the FAFSA and make it 
easier and less time-consuming to complete, 
thereby increasing higher education access for 
low-income students; 
‘‘(B) to examine the feasibility, and evalu-
ate the costs and benefits, of using income data 
from the Internal Revenue Service to pre-popu-
late the electronic version of the FAFSA; 
‘‘(C) to determine ways in which to provide 
reliable information on the amount of Federal 
grant aid and financial assistance a student can 
expect to receive, assuming constant income, 2 to 
3 years before the student’s enrollment; and 
‘‘(D) to simplify the process for determining 
eligibility for student financial aid without caus-
ing significant redistribution of Federal grants 
and subsidized loans under this title. 
‘‘(4) REQUIRED
SUBJECTS
OF
STUDY.—The 
study required under paragraph (2) shall consider— 
‘‘(A) how the expected family contribution 
of a student could be calculated using substan-
301 
tially less income and asset information than the 
approach currently used, as of the time of the 
study, to calculate the expected family contribu-
tion without causing significant redistribution of 
Federal grants and subsidized loans under this 
title, State aid, or institutional aid, or change in 
the composition of the group of recipients of such 
aid, which alternative approaches for calculating 
the expected family contribution shall, to the ex-
tent practicable— 
‘‘(i) rely mainly, in the case of stu-
dents and parents who file income tax re-
turns, on information available on the 
1040, 1040EZ, and 1040A; and 
‘‘(ii) include formulas for adjusting in-
come or asset information to produce simi-
lar results to the existing approach with less 
data; 
‘‘(B) how the Internal Revenue Service can 
provide income and other data needed to com-
pute an expected family contribution for tax-
payers and dependents of taxpayers to the Sec-
retary of Education, and when in the applica-
tion cycle the data can be made available;
302 
‘‘(C) whether data provided by the Internal 
Revenue could be used to— 
‘‘(i) prepopulate the electronic version 
of the FAFSA with student and parent tax-
payer data; or 
‘‘(ii) generate an expected family con-
tribution without additional action on the 
part of the student and taxpayer; 
‘‘(D) the extent to which the use of income 
data from 2 years prior to a student’s planned 
enrollment date would change the expected fam-
ily contribution computed in accordance with 
part F, and potential adjustments to the need 
analysis formula that would minimize the 
change; 
‘‘(E) the extent to which States and institu-
tions would accept the data provided by the In-
ternal Revenue Service to prepopulate the elec-
tronic version of the FAFSA in determining the 
distribution of State and institutional student fi-
nancial aid funds; 
‘‘(F) the changes to the electronic version of 
the FAFSA and verification processes that would 
be needed or could be made if Internal Revenue
303 
Service data were used to prepopulate such elec-
tronic version; 
‘‘(G) the data elements currently collected, 
as of the time of the study, on the FAFSA that 
are needed to determine eligibility for student 
aid, or to administer Federal student financial 
aid programs, but are not needed to compute an 
expected family contribution, such as whether in-
formation regarding the student’s citizenship or 
permanent residency status, registration for se-
lective service, or driver’s license number could 
be reduced without adverse effects; 
‘‘(H) additional steps that can be taken to 
simplify the financial aid application process for 
students who (or, in the case of dependent stu-
dents, whose parents) are not required to file an 
income tax return for the prior taxable year; 
‘‘(I) information on the State need for and 
usage of the full array of income, asset, and 
other information currently collected, as of the 
time of the study, on the FAFSA, including 
analyses of— 
‘‘(i) what data are currently used by 
States to determine eligibility for State stu-
304 
dent financial aid, and whether the data 
are used for merit or need-based aid; 
‘‘(ii) the extent to which the full array 
of income and asset information currently 
collected on the FAFSA play an important 
role in the awarding of need-based State fi-
nancial aid, and whether the State could 
use income and asset information that was 
more limited to support determinations of 
eligibility for such State aid programs; 
‘‘(iii) whether data are required by 
State law, State regulations, or policy di-
rectives; 
‘‘(iv) what State official has the au-
thority to advise the Department on what 
the State requires to calculate need-based 
State student financial aid; 
‘‘(v) the extent to which any State-spe-
cific information requirements could be met 
by completion of a State application linked 
to the electronic version of the FAFSA; and 
‘‘(vi) whether the State can use, as of 
the time of the study, or could use, a stu-
dent’s expected family contribution based on 
data from 2 years prior to the student’s
305 
planned enrollment date and a calculation 
with reduced data elements and, if not, 
what additional information would be need-
ed or what changes would be required; and 
‘‘(J) information on institutional needs, in-
cluding the extent to which institutions of higher 
education are already using supplemental forms 
to collect additional data from students and their 
families to determine eligibility for institutional 
funds. 
‘‘(5) USE OF DATA FROM THE INTERNAL REV-
ENUE
SERVICE
TO
PREPOPULATE
FAFSA
FORMS.— 
After the study required under this subsection has 
been completed, the Secretary may use Internal Rev-
enue Service data to prepopulate the electronic 
version of the FAFSA if the Secretary, in a joint de-
cision with the Secretary of Treasury, determines that 
such use will not significantly negatively impact stu-
dents, institutions of higher education, States, or the 
Federal Government based on each of the following 
criteria: 
‘‘(A) Program costs. 
‘‘(B) Redistributive effects on students. 
‘‘(C) Accuracy of aid determinations.
306 
‘‘(D) Reduction of burden to the FAFSA fil-
ers. 
‘‘(E) Whether all States and institutions 
that currently accept the Federal aid formula ac-
cept the use of data from 2 years prior to the 
date of a student’s planned enrollment in an in-
stitution of higher education to award Federal, 
State, and institutional aid, and as a result will 
not require students to complete any additional 
forms to receive this aid. 
‘‘(6) CONSULTATION.—The Secretary shall con-
sult with the Advisory Committee on Student Finan-
cial Assistance established under section 491 as ap-
propriate in carrying out this subsection. 
‘‘(7) REPORT.—Not later than 1 year after the 
date of enactment of the Higher Education Amend-
ments of 2007, the Comptroller General and the Sec-
retary shall prepare and submit a report on the re-
sults of the study required under this subsection to the 
authorizing committees.’’. 
SEC. 474. STUDENT ELIGIBILITY. 
(a) AMENDMENTS.—Section 484 (20 U.S.C. 1091) is 
amended— 
(1) in subsection (d), by adding at the end the 
following:
307 
‘‘(4) The student shall be determined by the in-
stitution of higher education as having the ability to 
benefit from the education or training offered by the 
institution of higher education, upon satisfactory 
completion of 6 credit hours or the equivalent 
coursework that are applicable toward a degree or cer-
tificate offered by the institution of higher edu-
cation.’’; 
(2) by striking subsection (l) and inserting the 
following: 
‘‘(l) COURSES OFFERED THROUGH DISTANCE EDU-
CATION.— 
‘‘(1) 
RELATION
TO
CORRESPONDENCE 
COURSES.— 
‘‘(A) IN GENERAL.—A student enrolled in a 
course of instruction at an institution of higher 
education that is offered principally through dis-
tance education and leads to a recognized certifi-
cate, or associate, baccalaureate, or graduate de-
gree, conferred by such institution, shall not be 
considered to be enrolled in correspondence 
courses. 
‘‘(B) EXCEPTION.—An institution of higher 
education referred to in subparagraph (A) shall 
not include an institution or school described in
308 
section 3(3)(C) of the Carl D. Perkins Career 
and Technical Education Act of 2006. 
‘‘(2) RESTRICTION OR REDUCTIONS OF FINAN-
CIAL AID.—A student’s eligibility to receive grants, 
loans, or work assistance under this title shall be re-
duced if a financial aid officer determines under the 
discretionary authority provided in section 479A that 
distance education results in a substantially reduced 
cost of attendance to such student. 
‘‘(3) SPECIAL RULE.—For award years prior to 
July 1, 2008, the Secretary shall not take any compli-
ance, disallowance, penalty, or other action against a 
student or an eligible institution when such action 
arises out of such institution’s prior award of student 
assistance under this title if the institution dem-
onstrates to the satisfaction of the Secretary that its 
course of instruction would have been in conformance 
with the requirements of this subsection.’’; and 
(3) by adding at the end the following: 
‘‘(s) STUDENTS WITH INTELLECTUAL DISABILITIES.— 
Notwithstanding subsection (a), in order to receive any 
grant or work assistance under subparts 1 and 3 of part 
A and part C of this title, a student with an intellectual 
disability shall—
309 
‘‘(1) be an individual with an intellectual dis-
ability whose mental retardation or other significant 
cognitive impairment substantially impacts the indi-
vidual’s intellectual and cognitive functioning; 
‘‘(2)(A) be a student eligible for assistance under 
the Individuals with Disabilities Education Act who 
has completed secondary school; or 
‘‘(B) be an individual who is no longer eligible 
for assistance under the Individuals with Disabilities 
Education Act because the individual has exceeded the 
maximum age for which the State provides a free ap-
propriate public education; 
‘‘(3) be enrolled or accepted for enrollment in a 
comprehensive transition and postsecondary edu-
cation program that— 
‘‘(A) is designed for students with an intel-
lectual disability who are seeking to continue 
academic, vocational, and independent living in-
struction at the institution in order to prepare 
for gainful employment and independent living; 
‘‘(B) includes an advising and curriculum 
structure; 
‘‘(C) requires students to participate on at 
least a half-time basis, as determined by the in-
stitution; or
310 
‘‘(D) includes— 
‘‘(i) regular enrollment in courses of-
fered by the institution; 
‘‘(ii) auditing or participating in 
courses offered by the institution for which 
the student does not receive regular aca-
demic credit; 
‘‘(iii) enrollment in noncredit, non-
degree courses; 
‘‘(iv) participation in internships; or 
‘‘(v) a combination of 2 or more of the 
activities described in clauses (i) through 
(iv); 
‘‘(4) be maintaining satisfactory progress in the 
program as determined by the institution, in accord-
ance with standards established by the institution; 
and 
‘‘(5) meet the requirements of paragraphs (3), 
(4), (5), and (6) of subsection (a).’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take affect on July 1, 2008. 
SEC. 475. STATUTE OF LIMITATIONS AND STATE COURT 
JUDGMENTS. 
Section 484A (20 U.S.C. 1091a) is amended— 
(1) in subsection (b)—
311 
(A) in paragraph (1), by striking ‘‘and’’ 
after the semicolon; 
(B) in paragraph (2), by striking the period 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(3) in collecting any obligation arising from a 
loan made under part E of this title, an institution 
of higher education that has an agreement with the 
Secretary pursuant to section 463(a) shall not be sub-
ject to a defense raised by any borrower based on a 
claim of infancy.’’; and 
(2) by adding at the end the following: 
‘‘(d) SPECIAL RULE.—This section shall not apply in 
the case of a student who is deceased or to a deceased stu-
dent’s estate or the estate of such student’s family. If a stu-
dent is deceased, then the student’s estate or the estate of 
the student’s family shall not be required to repay any fi-
nancial assistance under this title, including interest paid 
on the student’s behalf, collection costs, or other charges 
specified in this title.’’. 
SEC. 476. INSTITUTIONAL REFUNDS. 
(a) AMENDMENT.—Section 484B(c)(2) (20 U.S.C. 
1091B(c)(2)) is amended by striking ‘‘may determine the 
appropriate withdrawal date.’’ and inserting ‘‘may deter-
mine—
312 
‘‘(A) the appropriate withdrawal date; and 
‘‘(B) that the requirements of subsection 
(b)(2) do not apply to the student.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on July 1, 2008. 
SEC. 477. INSTITUTIONAL AND FINANCIAL ASSISTANCE IN-
FORMATION FOR STUDENTS. 
Section 485 (20 U.S.C. 1092) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) in subparagraph (G)— 
(I) by striking ‘‘program, and’’ 
and inserting ‘‘program,’’; and 
(II) by inserting ‘‘, and (iv) any 
plans by the institution for improving 
the academic program of the institu-
tion’’ after ‘‘instructional personnel’’; 
and 
(ii) by striking subparagraph (M) and 
inserting the following: 
‘‘(M) the terms and conditions of the loans 
that students receive under parts B, D, and E;’’; 
(iii) in subparagraph (N), by striking 
‘‘and’’ after the semicolon;
313 
(iv) in subparagraph (O), by striking 
the period and inserting a semicolon; and 
(v) by adding at the end the following: 
‘‘(P) institutional policies and sanctions re-
lated to copyright infringement, including— 
‘‘(i) an annual disclosure that explic-
itly informs students that unauthorized dis-
tribution of copyrighted material, including 
unauthorized peer-to-peer file sharing, may 
subject the students to civil and criminal li-
abilities; 
‘‘(ii) a summary of the penalties for 
violation of Federal copyright laws; 
‘‘(iii) a description of the institution’s 
policies with respect to unauthorized peer- 
to-peer file sharing, including disciplinary 
actions that are taken against students who 
engage in unauthorized distribution of 
copyrighted materials using the institution’s 
information technology system; and 
‘‘(iv) a description of actions that the 
institution takes to prevent and detect un-
authorized distribution of copyrighted mate-
rial on the institution’s information tech-
nology system;
314 
‘‘(Q) student body diversity at the institu-
tion, including information on the percentage of 
enrolled, full-time students who are— 
‘‘(i) male; 
‘‘(ii) female; 
‘‘(iii) from a low-income background; 
and 
‘‘(iv) a self-identified member of a 
major racial or ethnic group; 
‘‘(R) the placement in employment of, and 
types of employment obtained by, graduates of 
the institution’s degree or certificate programs, 
gathered from such sources as alumni surveys, 
student satisfaction surveys, the National Survey 
of Student Engagement, the Community College 
Survey of Student Engagement, State data sys-
tems, or other relevant sources; 
‘‘(S) the types of graduate and professional 
education in which graduates of the institution’s 
4-year degree programs enrolled, gathered from 
such sources as alumni surveys, student satisfac-
tion surveys, the National Survey of Student En-
gagement, State data systems, or other relevant 
sources;
315 
‘‘(T) the fire safety report prepared by the 
institution pursuant to subsection (i); and 
‘‘(U) the retention rate of certificate- or de-
gree-seeking, full-time, undergraduate students 
entering such institution.’’; 
(B) by striking paragraph (4) and inserting 
the following: 
‘‘(4) For purposes of this section, institutions 
may— 
‘‘(A) exclude from the information disclosed 
in accordance with subparagraph (L) of para-
graph (1) the completion or graduation rates of 
students who leave school to serve in the Armed 
Forces, on official church missions, or with a 
recognized foreign aid service of the Federal Gov-
ernment; or 
‘‘(B) in cases where the students described 
in subparagraph (A) represent 20 percent or 
more of the certificate- or degree-seeking, full- 
time, undergraduate students at the institution, 
the institution may recalculate the completion or 
graduation rates of such students by excluding 
from the calculation described in paragraph (3) 
the time period such students were not enrolled 
due to their service in the Armed Forces, on offi-
316 
cial church missions, or with a recognized for-
eign aid service of the Federal Government.’’; 
and 
(C) by adding at the end the following: 
‘‘(7) The information disclosed under subparagraph 
(L) of paragraph (1), or reported under subsection (e), shall 
include information disaggregated by gender, by each major 
racial and ethnic subgroup, by recipients of a Federal Pell 
Grant, by recipients of a loan made under this part or part 
D (other than a loan made under section 428H or a Federal 
Direct Unsubsidized Stafford Loan) who did not receive a 
Federal Pell Grant, and by recipients of neither a Federal 
Pell Grant nor a loan made under this part or part D 
(other than a loan made under section 428H or a Federal 
Direct Unsubsidized Stafford Loan), if the number of stu-
dents in such subgroup or with such status is sufficient to 
yield statistically reliable information and reporting would 
not reveal personally identifiable information about an in-
dividual student. If such number is not sufficient for such 
purposes, then the institution shall note that the institution 
enrolled too few of such students to so disclose or report with 
confidence and confidentiality.’’; 
(2) in subsection (b)—
317 
(A) in paragraph (1)(A), by striking the 
subparagraph designation and all that follows 
through ‘‘465.’’ and inserting the following: 
‘‘(A) Each eligible institution shall, through 
financial aid offices or otherwise, provide coun-
seling to borrowers of loans that are made, in-
sured, or guaranteed under part B (other than 
loans made pursuant to section 428C or loans 
made to parents pursuant to section 428B), or 
made under part D (other than Federal Direct 
Consolidation Loans or Federal Direct PLUS 
Loans made to parents) or E, prior to the com-
pletion of the course of study for which the bor-
rower enrolled at the institution or at the time 
of departure from such institution. The coun-
seling required by this subsection shall include— 
‘‘(i) information on the repayment 
plans available, including a discussion of 
the different features of each plan and sam-
ple information showing the difference in 
interest paid and total payments under 
each plan; 
‘‘(ii) the average anticipated monthly 
repayments under the standard repayment 
plan and, at the borrower’s request, the
318 
other repayment plans for which the bor-
rower is eligible; 
‘‘(iii) such debt and management strat-
egies as the institution determines are de-
signed to facilitate the repayment of such 
indebtedness; 
‘‘(iv) an explanation that the borrower 
has the ability to prepay each such loan, 
pay the loan on a shorter schedule, and 
change repayment plans; 
‘‘(v) the terms and conditions under 
which the student may obtain full or par-
tial forgiveness or cancellation of principal 
or interest under sections 428J, 460, and 
465 (to the extent that such sections are ap-
plicable to the student’s loans); 
‘‘(vi) the terms and conditions under 
which the student may defer repayment of 
principal or interest or be granted forbear-
ance under subsections (b)(1)(M) and (o) of 
section 428, 428H(e)(7), subsections (f) and 
(l) of section 455, and section 464(c)(2), 
and the potential impact of such deferment 
or forbearance;
319 
‘‘(vii) the consequences of default on 
such loans; 
‘‘(viii) information on the effects of 
using a consolidation loan to discharge the 
borrower’s loans under parts B, D, and E, 
including, at a minimum— 
‘‘(I) the effects of consolidation on 
total interest to be paid, fees to be 
paid, and length of repayment; 
‘‘(II) the effects of consolidation 
on a borrower’s underlying loan bene-
fits, including all grace periods, loan 
forgiveness, cancellation, and deferment 
opportunities; 
‘‘(III) the ability of the borrower 
to prepay the loan or change repay-
ment plans; and 
‘‘(IV) that borrower benefit pro-
grams may vary among different loan 
holders; and 
‘‘(ix) a notice to borrowers about the 
availability of the National Student Loan 
Data System and how the system can be 
used by a borrower to obtain information 
on the status of the borrower’s loans.’’; and
320 
(B) by adding at the end the following: 
‘‘(3) Each eligible institution shall, during the 
exit interview required by this subsection, provide to 
a borrower of a loan made under part B, D, or E a 
clear and conspicuous notice describing the general ef-
fects of using a consolidation loan to discharge the 
borrower’s student loans, including— 
‘‘(A) the effects of consolidation on total in-
terest to be paid, fees to be paid, and length of 
repayment; 
‘‘(B) the effects of consolidation on a bor-
rower’s underlying loan benefits, including loan 
forgiveness, cancellation, and deferment; 
‘‘(C) the ability for the borrower to prepay 
the loan, pay on a shorter schedule, and to 
change repayment plans, and that borrower ben-
efit programs may vary among different loan 
holders; 
‘‘(D) a general description of the types of 
tax benefits which may be available to borrowers 
of student loans; and 
‘‘(E) the consequences of default.’’; 
(3) in subsection (d)(2)— 
(A) by inserting ‘‘grant assistance, as well 
as State’’ after ‘‘describing State’’; and
321 
(B) by inserting ‘‘and other means, includ-
ing through the Internet’’ before the period at the 
end; 
(4) in subsection (e), by striking paragraph (3) 
and inserting the following: 
‘‘(3) For purposes of this subsection, institutions 
may— 
‘‘(A) exclude from the reporting require-
ments under paragraphs (1) and (2) the comple-
tion or graduation rates of students and student 
athletes who leave school to serve in the Armed 
Forces, on official church missions, or with a 
recognized foreign aid service of the Federal Gov-
ernment; or 
‘‘(B) in cases where the students described 
in subparagraph (A) represent 20 percent or 
more of the certificate- or degree-seeking, full- 
time, undergraduate students at the institution, 
the institution may calculate the completion or 
graduation rates of such students by excluding 
from the calculations described in paragraph (1) 
the time period such students were not enrolled 
due to their service in the Armed Forces, on offi-
cial church missions, or with a recognized for-
eign aid service of the Federal Government.’’;
322 
(5) in subsection (f)— 
(A) in paragraph (1)— 
(i) the matter preceding subparagraph 
(A), by inserting ‘‘, other than a foreign in-
stitution of higher education,’’ after ‘‘under 
this title’’; and 
(ii) by adding at the end the following: 
‘‘(J) A statement of current campus policies 
regarding immediate emergency response and 
evacuation procedures, including the use of elec-
tronic and cellular communication (if appro-
priate), which policies shall include procedures— 
‘‘(i) to notify the campus community 
in a reasonable and timely manner in the 
event of a significant emergency or dan-
gerous situation, involving an immediate 
threat to the health or safety of students or 
staff, occurring on the campus; 
‘‘(ii) to publicize emergency response 
and evacuation procedures on an annual 
basis in a manner designed to reach stu-
dents and staff; and 
‘‘(iii) to test emergency response and 
evacuation procedures on an annual basis.’’;
323 
(B) by redesignating paragraph (15) as 
paragraph (17); and 
(C) by inserting after paragraph (14) the 
following: 
‘‘(15) COMPLIANCE
REPORT.—The Secretary 
shall annually report to the authorizing committees 
regarding compliance with this subsection by institu-
tions of higher education, including an up-to-date re-
port on the Secretary’s monitoring of such compli-
ance. 
‘‘(16) BEST
PRACTICES.—The Secretary may 
seek the advice and counsel of the Attorney General 
concerning the development, and dissemination to in-
stitutions of higher education, of best practices infor-
mation about campus safety and emergencies.’’; and 
(6) by adding at the end the following: 
‘‘(h) TRANSFER OF CREDIT POLICIES.— 
‘‘(1) DISCLOSURE.—Each institution of higher 
education participating in any program under this 
title shall publicly disclose in a readable and com-
prehensible manner the transfer of credit policies es-
tablished by the institution which shall include a 
statement of the institution’s current transfer of credit 
policies that includes, at a minimum—
324 
‘‘(A) any established criteria the institution 
uses regarding the transfer of credit earned at 
another institution of higher education; and 
‘‘(B) a list of institutions of higher edu-
cation with which the institution has established 
an articulation agreement. 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to— 
‘‘(A) authorize the Secretary or the Accredi-
tation and Institutional Quality and Integrity 
Advisory Committee to require particular poli-
cies, procedures, or practices by institutions of 
higher education with respect to transfer of cred-
it; 
‘‘(B) authorize an officer or employee of the 
Department to exercise any direction, super-
vision, or control over the curriculum, program 
of instruction, administration, or personnel of 
any institution of higher education, or over any 
accrediting agency or association; 
‘‘(C) limit the application of the General 
Education Provisions Act; or 
‘‘(D) create any legally enforceable right on 
the part of a student to require an institution of
325 
higher education to accept a transfer of credit 
from another institution. 
‘‘(i) DISCLOSURE OF FIRE SAFETY STANDARDS AND 
MEASURES.— 
‘‘(1) ANNUAL FIRE SAFETY REPORTS ON STU-
DENT HOUSING REQUIRED.—Each eligible institution 
participating in any program under this title shall, 
on an annual basis, publish a fire safety report, 
which shall contain information with respect to the 
campus fire safety practices and standards of that in-
stitution, including— 
‘‘(A) statistics concerning the following in 
each on-campus student housing facility during 
the most recent calendar years for which data 
are available— 
‘‘(i) the number of fires and the cause 
of each fire; 
‘‘(ii) the number of injuries related to 
a fire that result in treatment at a medical 
facility; 
‘‘(iii) the number of deaths related to a 
fire; and 
‘‘(iv) the value of property damage 
caused by a fire;
326 
‘‘(B) a description of each on-campus stu-
dent housing facility fire safety system, includ-
ing the fire sprinkler system; 
‘‘(C) the number of regular mandatory su-
pervised fire drills; 
‘‘(D) policies or rules on portable electrical 
appliances, smoking, and open flames (such as 
candles), procedures for evacuation, and policies 
regarding fire safety education and training pro-
grams provided to students, faculty, and staff; 
and 
‘‘(E) plans for future improvements in fire 
safety, if determined necessary by such institu-
tion. 
‘‘(2) REPORT TO THE SECRETARY.—Each eligi-
ble institution participating in any program under 
this title shall, on an annual basis submit to the Sec-
retary a copy of the statistics required to be made 
available under subparagraph (A). 
‘‘(3) CURRENT INFORMATION TO CAMPUS COMMU-
NITY.—Each institution participating in any pro-
gram under this title shall— 
‘‘(A) make, keep, and maintain a log, re-
cording all fires in on-campus student housing
335 
‘‘(B) ensure that the data in the data sys-
tem are not being used for marketing purposes; 
and 
‘‘(C) monitor the use of the data system by 
guaranty agencies and eligible lenders to deter-
mine whether an agency or lender is accessing 
the records of students in which the agency or 
lender has no existing financial interest; and 
‘‘(6) developing standardized protocols for lim-
iting access to the data system that include— 
‘‘(A) collecting data on the usage of the data 
system to monitor whether access has been or is 
being used contrary to the purposes of the data 
system; 
‘‘(B) defining the steps necessary for deter-
mining whether, and how, to deny or restrict ac-
cess to the data system; and 
‘‘(C) determining the steps necessary to re-
open access to the data system following a denial 
or restriction of access.’’; and 
(4) by striking subsection (e) (as redesignated by 
paragraph (1)) and inserting the following: 
‘‘(e) REPORTS TO CONGRESS.— 
‘‘(1) ANNUAL
REPORT.—Not later than Sep-
tember 30 of each fiscal year, the Secretary shall pre-
370 
‘‘(ii) is subject to a conflict of interest 
policy; and 
‘‘(D) the right to representation by counsel 
for such an institution during an appeal of the 
adverse action;’’; and 
(D) by striking paragraph (8) and insert-
ing the following: 
‘‘(8) such agency or association shall make avail-
able to the public and the State licensing or author-
izing agency, and submit to the Secretary, a sum-
mary of agency or association actions, including— 
‘‘(A) the award of accreditation or re-
accreditation of an institution; 
‘‘(B) final denial, withdrawal, suspension, 
or termination of accreditation, or placement on 
probation of an institution, and any findings 
made in connection with the action taken, to-
gether with the official comments of the affected 
institution; and 
‘‘(C) any other adverse action taken with 
respect to an institution.’’; 
(2) in subsection (c)— 
(A) in paragraph (1), by inserting ‘‘, in-
cluding those regarding distance education’’ after 
‘‘their responsibilities’’;