Coverdell Education Savings Accounts 
under section 530 of the Internal Revenue 
Code of 1986); and 
(iii) contains funds that may be used 
only for the costs associated with attending 
an institution of higher education, includ-
ing— 
(I) tuition and fees; 
(II) room and board; 
(III) textbooks; 
(IV) supplies and equipment; and 
(V) Internet access. 
(D) DUAL ENROLLMENT PROGRAM.—The 
term ‘‘dual enrollment program’’ means an aca-
demic program through which a secondary 
school student is able simultaneously to earn 
credit toward a secondary school diploma and a 
postsecondary degree or credential. 
(E) ELIGIBLE ENTITY.—The term ‘‘eligible 
entity’’ means— 
(i) a State educational agency; 
(ii) a local educational agency; 
(iii) a charter school or charter man-
agement organization; 
(iv) an institution of higher education; 
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(v) a nonprofit organization; 
(vi) an entity with demonstrated expe-
rience in educational savings or in assist-
ing low-income students to prepare for, 
and attend, an institution of higher edu-
cation; or 
(vii) a consortium of 2 or more of the 
entities described in clauses (i) through 
(vi). 
(F) 
ESEA 
DEFINITIONS.—The 
terms 
‘‘local educational agency’’, ‘‘parent’’, and 
‘‘State educational agency’’ have the meanings 
given the terms in section 9101 of the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 7801) and the term ‘‘charter school’’ 
has the meaning given the term in section 5210 
of such Act. 
(G) 
INSTITUTION
OF
HIGHER
EDU-
CATION.—The term ‘‘institution of higher edu-
cation’’ has the meaning given the term in sec-
tion 101(a) of the Higher Education Act of 
1965 (20 U.S.C. 1001(a)). 
(H) LOW-INCOME
STUDENT.—The term 
‘‘low-income student’’ means a student who is 
eligible to receive a free or reduced price lunch 
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under the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et seq.). 
(2) GRANT PROGRAM.— 
(A) PROGRAM
AUTHORIZED.—The Sec-
retary of Education is authorized to award 
grants, on a competitive basis, to eligible enti-
ties to enable such eligible entities to establish 
and administer American Dream Accounts for a 
group of low-income students. 
(B) RESERVATION.—From the amount 
made available each fiscal year to carry out this 
section under section 286(w)(6) of the Immi-
gration and Nationality Act, as added by sub-
section (c), the Secretary of Education shall re-
serve not more than 5 percent of such amount 
to carry out the evaluation activities described 
in paragraph (5)(A). 
(C) DURATION.—A grant awarded under 
this subsection shall be for a period of not more 
than 3 years. The Secretary of Education may 
extend such grant for an additional 2-year pe-
riod if the Secretary of Education determines 
that the eligible entity has demonstrated signifi-
cant progress, based on the factors described in 
paragraph (3)(B)(xi). 
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(3) APPLICATIONS; PRIORITY.— 
(A) IN GENERAL.—Each eligible entity de-
siring a grant under this subsection shall sub-
mit an application to the Secretary of Edu-
cation at such time, in such manner, and con-
taining such information as the Secretary of 
Education may require. 
(B) 
CONTENTS.—The 
application 
de-
scribed in subparagraph (A) shall include— 
(i) a description of the characteristics 
of a group of not less than 30 low-income 
public school students who— 
(I) are, at the time of the appli-
cation, attending a grade not higher 
than grade 9; and 
(II) will, under the grant, receive 
an American Dream Account; 
(ii) a description of how the eligible 
entity will engage, and provide support 
(such as tutoring and mentoring for stu-
dents, and training for teachers and other 
stakeholders) either online or in person, 
to— 
(I) the students in the group de-
scribed in clause (I); 
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(II) the family members and 
teachers of such students; and 
(III) other stakeholders such as 
school 
administrators 
and 
school 
counselors; 
(iii) an identification of partners who 
will assist the eligible entity in establishing 
and sustaining American Dream Accounts; 
(iv) a description of what experience 
the eligible entity or the eligible entity’s 
partners have in managing college savings 
accounts, preparing low-income students 
for postsecondary education, managing on-
line systems, and teaching financial lit-
eracy; 
(v) a description of how the eligible 
entity will help increase the value of the 
college savings account portion of each 
American Dream Account, such as by pro-
viding matching funds or incentives for 
academic achievement; 
(vi) a description of how the eligible 
entity will notify each participating student 
in the group described in subparagraph 
(A), on a semiannual basis, of the current 
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balance and status of the student’s college 
savings account portion of the student’s 
American Dream Account; 
(vii) a plan that describes how the eli-
gible entity will monitor participating stu-
dents in the group described in clause (i) 
to ensure that each student’s American 
Dream Account will be maintained if a stu-
dent in such group changes schools before 
graduating from secondary school; 
(viii) a plan that describes how the 
American Dream Accounts will be man-
aged for not less than 1 year after a ma-
jority of the students in the group de-
scribed in clause (i) graduate from sec-
ondary school; 
(ix) a description of how the eligible 
entity will encourage students in the group 
described in clause (i) who fail to graduate 
from secondary school to continue their 
education; 
(x) a description of how the eligible 
entity will evaluate the grant program, in-
cluding by collecting, as applicable, data 
about the students in the group described 
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in clause (i) during the grant period, and, 
if sufficient grant funds are available, after 
the grant period, including— 
(I) attendance rates; 
(II) progress reports; 
(III) grades and course selec-
tions; 
(IV) the student graduation rate 
(as 
defined 
in 
section 
1111 
(b)(2)(C)(vi) of the Elementary and 
Secondary Education Act of 1965 (20 
U.S.C. 6311(b)(2)(C)(vi))); 
(V) rates of student completion 
of the Free Application for Federal 
Student Aid described in section 483 
of the Higher Education Act of 1965 
(20 U.S.C. 1090); 
(VI) rates of enrollment in an in-
stitution of higher education; and 
(VII) rates of completion at an 
institution of higher education; 
(xi) a description of what will happen 
to the funds in the college savings account 
portion of the American Dream Accounts 
that are dedicated to participating stu-
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dents described in clause (i) who have not 
matriculated at an institution of higher 
education at the time of the conclusion of 
the period of American Dream Account 
management described in clause (viii); 
(xii) a description of how the eligible 
entity will ensure that funds in the college 
savings account portion of the American 
Dream Accounts will not make families in-
eligible for public assistance; and 
(xiii) a description of how the eligible 
entity will ensure that participating stu-
dents described in clause (i) will have ac-
cess to the Internet. 
(C) PRIORITY.—In awarding grants under 
this subsection, the Secretary of Education 
shall give priority to applications from eligible 
entities that— 
(i) 
are 
described 
in 
paragraph 
(1)(E)(vii); 
(ii) serve the largest number of low-in-
come students; 
(iii) emphasize preparing students to 
pursue careers in science, technology, engi-
neering, or mathematics; or 
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(iv) in the case of an eligible entity 
described in clause (i) or (ii) of paragraph 
(1)(E), provide opportunities for partici-
pating students described in clause (i) to 
participate in a dual enrollment program 
at no cost to the student. 
(4) AUTHORIZED ACTIVITIES.— 
(A) IN GENERAL.—An eligible entity that 
receives a grant under this subsection shall use 
such grant funds to establish an American 
Dream Account for each participating student 
described in paragraph (3)(B)(i), which will be 
used to— 
(i) open a college savings account for 
such student; 
(ii) monitor the progress of such stu-
dent online, which— 
(I) shall include monitoring stu-
dent data relating to— 
(aa) grades and course se-
lections; 
(bb) progress reports; and 
(cc) attendance and discipli-
nary records; and 
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(II) may also include monitoring 
student data relating to a broad range 
of information, provided by teachers 
and family members, related to post-
secondary education readiness, access, 
and completion; 
(iii) provide opportunities for such 
students, either online or in person, to 
learn about financial literacy, including 
by— 
(I) assisting such students in fi-
nancial planning for enrollment in an 
institution of higher education; and 
(II) assisting such students in 
identifying and applying for financial 
aid (such as loans, grants, and schol-
arships) for an institution of higher 
education; 
(iv) provide opportunities for such 
students, either online or in person, to 
learn about preparing for enrollment in an 
institution of higher education, including 
by 
providing 
instruction 
to 
students 
about— 
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(I) 
choosing 
the 
appropriate 
courses to prepare for postsecondary 
education; 
(II) applying to an institution of 
higher education; 
(III) building a student portfolio, 
which may be used when applying to 
an institution of higher education; 
(IV) selecting an institution of 
higher education; 
(V) choosing a major for the stu-
dent’s postsecondary program of edu-
cation or a career path, including spe-
cific instruction on pursuing science, 
technology, engineering, and mathe-
matics majors; and 
(VI) adapting to life at an insti-
tution of higher education; and 
(v) provide opportunities for such stu-
dents, either online or in person, to iden-
tify skills or interests, including career in-
terests. 
(B) ACCESS
TO
AMERICAN
DREAM
AC-
COUNT.— 
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(i) IN GENERAL.—Subject to clauses 
(iii) and (iv), and in accordance with appli-
cable Federal laws and regulations relating 
to privacy of information and the privacy 
of children, an eligible entity that receives 
a grant under this subsection shall allow 
vested stakeholders described in clause (ii), 
to have secure access, through the Inter-
net, to an American Dream Account. 
(ii) VESTED
STAKEHOLDERS.—The 
vested stakeholders that an eligible entity 
shall permit to access an American Dream 
Account are individuals (such as the stu-
dent’s teachers, school counselors, coun-
selors at an institution of higher education, 
school administrators, or other individuals) 
that are designated, in accordance with the 
Family Educational Rights and Privacy 
Act of 1974 (20 U.S.C. 1232g), by the 
parent of a participating student in whose 
name such American Dream Account is 
held, as having permission to access the 
account. A student’s parent may withdraw 
such designation from an individual at any 
time. 
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