SEC. 1402. INDIVIDUALS ELIGIBLE TO RECEIVE A NATIONAL 
SERVICE EDUCATIONAL AWARD FROM THE 
TRUST. 
Section 146 (42 U.S.C. 12602) is amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘if the individual’’ and inserting ‘‘if 
the organization responsible for an individual’s 
supervision certifies that the individual’’; 
(B) by striking paragraphs (1), (2), and (3) 
and inserting the following: 
‘‘(1) met the applicable eligibility requirements 
for the position; and 
‘‘(2)(A) successfully completed the required term 
of service described in subsection (b) in an approved 
national service position; or 
‘‘(B)(i) satisfactorily performed prior to being 
granted a release for compelling personal cir-
cumstances under section 139(c); and 
‘‘(ii) served at least 15 percent of the required 
term of service described in subsection (b); and’’; and 
(C) by redesignating paragraph (4) as 
paragraph (3); 
(2) by striking subsection (c) and inserting the 
following: 
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‘‘(c) LIMITATION ON RECEIPT OF NATIONAL SERVICE 
EDUCATIONAL AWARDS.—An individual may not receive, 
in national service educational awards, more than an 
amount equal to the aggregate value of 2 such awards for 
full-time service. The aggregate value of summer of service 
educational awards that an individual receives shall have 
no effect on the aggregate value of national service edu-
cational awards the individual may receive.’’; 
(3) in subsection (d)— 
(A) in paragraph (1) by inserting after 
‘‘national service educational award’’ the fol-
lowing: ‘‘or a summer of service educational 
award’’; and 
(B) in paragraph (2)— 
(i) in the matter preceding subpara-
graph (A), and in subparagraph (A), by in-
serting after ‘‘national service educational 
award’’ the following: ‘‘or a summer of serv-
ice educational award’’; 
(ii) in subparagraph (A) by striking 
‘‘or’’ at the end; 
(iii) in subparagraph (B) by striking 
the period at the end and inserting ‘‘; or’’; 
(iv) by adding at the end the following: 
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‘‘(C) in the case of a summer of service edu-
cational award, is enrolled at an eligible institu-
tion of higher education under section 148(c) or 
an educational institution described under sec-
tion 148(a)(4) and failed to expend the full 
amount of that award during the original 7-year 
period.’’; and 
(4) in subsection (e)(1)— 
(A) by inserting after ‘‘qualifying under 
this section’’ the following: ‘‘or under section 
111(a)(5)’’; and 
(B) by inserting after ‘‘to receive a national 
service educational award’’ the following: ‘‘or a 
summer of service educational award’’. 
SEC. 1403. DETERMINATION OF THE AMOUNT OF NATIONAL 
SERVICE EDUCATIONAL AWARDS. 
Section 147(a) (42 U.S.C. 12603(a)) is amended— 
(1) by striking ‘‘a value, for each of not more 
than 2 of such terms of service, equal to 90 percent 
of—’’ and inserting ‘‘a value of—’’; and 
(2) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) $4,825, for fiscal year 2008; 
‘‘(2) $4,925, for fiscal year 2009; 
‘‘(3) $5,025, for fiscal year 2010; 
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‘‘(4) $5,125, for fiscal year 2011; and 
‘‘(5) $5,225, for fiscal year 2012 and each fiscal 
year thereafter.’’. 
SEC. 1404. DISBURSEMENT OF EDUCATIONAL AWARDS. 
Section 148 (42 U.S.C. 12604) is amended— 
(1) in subsection (a)— 
(A) in paragraph (2), by striking ‘‘cost of 
attendance’’ and inserting ‘‘cost of attendance or 
other educational expenses’’; 
(B) in paragraph (3), by striking ‘‘and’’; 
(C) by redesignating paragraph (4) as 
paragraph (6); 
(D) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) to pay expenses incurred in enrolling in an 
educational institution or training establishment that 
meets the requirements of chapter 36 of title 38, 
United States Code (38 U.S.C. 3451 et seq.); 
‘‘(5) for a recipient of a summer of service edu-
cational award under section 111(a)(5)(D), to pay ex-
penses incurred in enrolling in a college preparatory 
program in accordance with subsection (e); and’’; and 
(E) in paragraph (6) (as so redesignated) 
by striking ‘‘subsection (e)’’ and inserting ‘‘sub-
section (f)’’; 
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(2) in subsection (b)(1) by inserting after ‘‘the 
national service educational award of the individual’’ 
the following: ‘‘, or an eligible individual under sec-
tion 111(a)(5) who received a summer of service edu-
cational award for a project that began after the indi-
vidual completed grade 10 and desires to apply that 
summer of service educational award,’’; 
(3) in subsection (b)(2) by inserting after ‘‘the 
national service educational award’’ the following: 
‘‘or the summer of service educational award, as ap-
plicable,’’; 
(4) in subsection (b)(5) by inserting after ‘‘the 
national service educational award’’ the following: 
‘‘or the summer of service educational award, as ap-
plicable’’; 
(5) in subsection (b)(7)— 
(A) in subparagraph (A), by striking ‘‘, 
other than a loan to a parent of a student pursu-
ant to section 428B of such Act (20 U.S.C. 
1078–2); and’’ and inserting a semicolon; 
(B) in subparagraph (B), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(C) any loan (other than a loan described 
in subparagraph (A) or (B)) determined by an 
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institution of higher education to be necessary to 
cover a student’s educational expenses and made, 
insured, or guaranteed by— 
‘‘(i) an eligible lender, as defined in 
section 435 of the Higher Education Act of 
1965 (20 U.S.C. 1085); 
‘‘(ii) the direct student loan program 
under part D of title IV of such Act; 
‘‘(iii) a State agency; or 
‘‘(iv) a lender otherwise determined by 
the Corporation to be eligible to receive dis-
bursements from the National Service 
Trust.’’; 
(6) in subsection (c)(1), by inserting after ‘‘na-
tional service educational award’’ the following: ‘‘, or 
an eligible individual under section 111(a)(5) who de-
sires to apply the individual’s summer of service edu-
cational award,’’; 
(7) in subsection (c)(2)(A), by inserting after 
‘‘national service educational award’’ the following: 
‘‘or summer of service educational award, as applica-
ble,’’; 
(8) in subsection (c)(2)(C)(iii), by inserting after 
‘‘national service educational awards received under 
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this subtitle’’ the following: ‘‘or summer of service 
educational awards received under section 111(a)(5)’’; 
(9) in subsection (c)(3), by inserting after ‘‘na-
tional service educational awards’’ the following: 
‘‘and summer of service educational awards’’; 
(10) in subsection (c)(5)— 
(A) by inserting after ‘‘national service edu-
cational award’’ the following: ‘‘, or summer of 
service educational award, as applicable,’’; and 
(B) by inserting after ‘‘additional’’ the fol-
lowing: ‘‘summer of service educational awards 
and additional’’; 
(11) in subsection (c)(6), by inserting after ‘‘na-
tional service educational award’’ the following: ‘‘and 
summer of service educational award’’; 
(12) in subsection (d), by inserting after ‘‘na-
tional service educational awards’’ the following: 
‘‘and summer of service educational awards’’; 
(13) by redesignating subsections (e), (f), and (g) 
as (f), (g), and (h), respectively; 
(14) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) USE
OF SUMMER
OF SERVICE EDUCATIONAL 
AWARD TO PAY COLLEGE PREPARATORY EXPENSES.— 
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‘‘(1) APPLICATION OF ELIGIBLE INDIVIDUALS.— 
An eligible individual under section 111(a)(5), or the 
parents or legal guardian of such an individual, who 
desires to apply the summer of service educational 
award of the individual to the payment of expenses 
incurred in enrolling in a college preparatory pro-
gram shall, on a form prescribed by the Corporation, 
submit an application to the college preparatory pro-
gram in which the individual will be enrolled that 
contains such information as the Corporation may re-
quire to verify the individual’s eligibility. 
‘‘(2) SUBMISSION OF REQUESTS FOR PAYMENT 
BY PROGRAM.—A college preparatory program that 
receives one or more applications under paragraph 
(1) shall submit to the Corporation a statement, in a 
manner prescribed by the Corporation, that— 
‘‘(A) identifies each eligible individual fil-
ing an application under paragraph (1) for a 
disbursement of the individual’s summer of serv-
ice educational award under this subsection; 
‘‘(B) specifies the amounts for which such 
eligible individuals are qualified for disburse-
ment; and 
‘‘(C) certifies that— 
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‘‘(i) the college preparatory program is 
operated by a for-profit or non-profit orga-
nization with a track record of success in 
implementing college preparatory programs 
that collaborate with local educational agen-
cies and adequately prepare secondary 
school students for admission to an institu-
tion of higher education without need for re-
mediation; 
‘‘(ii) the college preparatory program 
has been in existence for at least one year 
prior to an eligible individual’s submission 
of the application under paragraph (1); and 
‘‘(iii) individuals using summer of 
service educational awards received under 
section 111(a)(5) to pay the cost of enrolling 
in the college preparatory program do not 
comprise more than 15 percent of the total 
number of individuals enrolled in the pro-
gram; and 
‘‘(D) contains such provisions concerning fi-
nancial compliance and program quality as the 
Corporation may require. 
‘‘(3) DISBURSEMENT OF PAYMENTS.—Upon re-
ceipt of a statement from a college preparatory pro-
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gram that complies with paragraph (2), the Corpora-
tion shall, subject to paragraph (4), disburse the total 
amount of the summer of service educational awards 
for which eligible individuals who have submitted ap-
plications to that program under paragraph (1) are 
scheduled to receive. Such disbursement shall be made 
by check or other means that is payable to the pro-
gram and requires the endorsement or other certifi-
cation by the eligible individual. 
‘‘(4) MULTIPLE
DISBURSEMENTS.—The total 
amount required to be disbursed to a college pre-
paratory program under paragraph (3) for any pe-
riod of enrollment may be disbursed by the Corpora-
tion in two or more installments consistent with ap-
propriate divisions of such period of enrollment. 
‘‘(5) REFUND RULES.—The Corporation shall, by 
regulation, provide for the refund to the Corporation 
(and the crediting to the summer of service edu-
cational award of an eligible individual) of amounts 
disbursed to programs for the benefit of eligible indi-
viduals who withdraw or otherwise fail to complete 
the period of enrollment for which the assistance was 
provided. Amounts refunded to the Trust pursuant to 
this paragraph may be used by the Corporation to 
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fund additional approved summer of service positions 
under section 111(a)(5). 
‘‘(6) MAXIMUM AWARD.—The portion of an eligi-
ble individual’s total available summer of service edu-
cational award that may be disbursed under this sub-
section for any period of enrollment shall not exceed 
the cost of attendance.’’; 
(15) in subsection (f) (as so redesignated), by 
striking ‘‘subsection (b)(6)’’ and inserting ‘‘subsection 
(b)(7)’’; and 
(16) in subsection (g) (as so redesignated), by 
striking ‘‘Director’’ and inserting ‘‘Chief Executive 
Officer’’. 
SEC. 1405. PROCESS OF APPROVAL OF NATIONAL SERVICE 
POSITIONS. 
(a) IN GENERAL.—Subtitle D of title I (42 U.S.C. 
12601 et seq.) is further amended by adding at the end the 
following new section: 
‘‘SEC. 149. PROCESS OF APPROVAL OF NATIONAL SERVICE 
POSITIONS. 
‘‘(a) TIMING AND RECORDING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Notwithstanding subtitles C 
and D, and any other provision of law, in approving 
a position as an approved national service position, 
the Corporation— 
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