available and remain available for use under 
subparagraph (B) for the award year that be-
gins in such fiscal year.’’. 
(c) AUTHORIZED MAXIMUMS.—Section 401(b)(2)(A) 
(20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows: 
‘‘(2)(A) The amount of the Federal Pell Grant 
for a student eligible under this part shall be— 
‘‘(i) $7,600 for academic year 2008–2009; 
‘‘(ii) $8,600 for academic year 2009–2010; 
‘‘(iii) $9,600 for academic year 2010– 
2011; 
‘‘(iv) $10,600 for academic year 2011– 
2012; 
‘‘(v) $11,600 for academic year 2012– 
2013, 
less an amount equal to the amount determined 
to be the expected family contribution with re-
spect to that student for that year.’’. 
(d) TUITION SENSITIVITY.— 
(1) AMENDMENT.—Section 401(b) (20 U.S.C. 
1070a(b)) is further amended— 
(A) by striking paragraph (3); and 
(B) 
by 
redesignating 
paragraphs 
(4) 
through (9) as paragraphs (3) through (8), re-
spectively.
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) of this subsection are effective on 
the date of enactment of this Act. 
(e) MULTIPLE GRANTS.—Paragraph (5) of section 
401(b) (as redesignated by subsection (d)(2)) is amended 
to read as follows: 
‘‘(5) YEAR-ROUND
PELL
GRANTS.—The Sec-
retary is authorized, for students enrolled full time 
in a baccalaureate or associate’s degree program of 
study at an eligible institution, to award such stu-
dents not more than two Pell grants during an 
award year to permit such students to accelerate 
progress toward their degree objectives by enrolling 
in academic programs for 12 months rather than 9 
months.’’. 
(f) ACADEMIC COMPETITIVENESS GRANTS.—Section 
401A (as amended by section 8003 of Public Law 109– 
171) is amended— 
(1) in subsection (c)(3)(A)(ii), by inserting ‘‘, 
except as part of a secondary school program of 
study’’ before the semicolon; 
(2) by redesignating subsection (g) as sub-
section (h); and 
(3) by inserting after subsection (f) the fol-
lowing new subsection:
‘‘(g) DETERMINATION OF ACADEMIC YEAR.—Not-
withstanding section 481(a)(2), for the purpose of deter-
mining eligibility for a grant under this section, a student 
shall be considered to be enrolled or accepted for enroll-
ment in the first, second, third, or fourth academic year 
of a program of undergraduate education based on the 
student’s class standing, as determined by the institution 
of higher education at which the student is enrolled or ac-
cepted for enrollment.’’. 
SEC. 102. SUPPORT FOR WORKING STUDENTS. 
(a) DEPENDENT STUDENTS.—Subparagraph (D) of 
section 475(g)(2) (20 U.S.C. 1087oo)(g)(2)(D)) is amend-
ed to read as follows: 
‘‘(D) an income protection allowance of the 
following amount (or a successor amount pre-
scribed by the Secretary under section 478)— 
‘‘(i) for the 2009–2010 academic year, 
$3,750; 
‘‘(ii) for the 2010–2011 academic 
year, $4,500; 
‘‘(iii) for the 2011–2012 academic 
year, $5,250; and 
‘‘(iv) for the 2012–2013 academic 
year, $6,000;’’.
(b) INDEPENDENT STUDENTS WITHOUT DEPEND-
ENTS OTHER THAN A SPOUSE.—Clause (iv) of section 
476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended 
to read as follows: 
‘‘(iv) an income protection allowance 
of the following amount (or a successor 
amount prescribed by the Secretary under 
section 478)— 
‘‘(I) for single or separated stu-
dents, or married students where both 
are enrolled pursuant to subsection 
(a)(2)— 
‘‘(aa) for the 2009–2010 
academic year, $6,690; 
‘‘(bb) for the 2010–2011 
academic year, $7,160; 
‘‘(cc) for the 2011–2012 
academic year, $7,630; and 
‘‘(dd) for the 2012–2013 
academic year, $8,090; and 
‘‘(II) for married students where 
1 is enrolled pursuant to subsection 
(a)(2)— 
‘‘(aa) for the 2009–2010 
academic year, $10,720;
‘‘(bb) for the 2010–2011 
academic year, $11,470; 
‘‘(cc) for the 2011–2012 
academic year, $12,220; and 
‘‘(dd) for the 2012–2013 
academic year, $12,960;’’. 
(c) UPDATED
TABLES
AND
AMOUNTS.—Section 
478(b) (20 U.S.C. 1087rr(b)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘REVISED TABLES.—For 
each’’ and inserting ‘‘REVISED TABLES.— 
‘‘(A) IN GENERAL.—For each’’; 
(B) in subparagraph (A) (as designated by 
subparagraph (A)), in the third sentence— 
(i) by striking ‘‘preceding sentence’’ 
and inserting ‘‘subparagraph (A)’’; and 
(ii) by striking ‘‘For the 2007–2008’’ 
and inserting the following: 
‘‘(B) SPECIAL RULE FOR 2007–2008 ACA-
DEMIC YEAR.—For the 2007–2008’’; and 
(C) by adding at the end the following: 
‘‘(C) 
SPECIAL
RULE
FOR
2009–2010 
THROUGH
2012–2013
ACADEMIC
YEARS.—For 
the 2009–2010 academic year, and for each of 
the 3 succeeding academic years, the Secretary
shall revise the tables in accordance with this 
paragraph, except that, for the table in section 
477(b)(4), the Secretary shall revise such table 
by increasing the amounts contained in such 
table for the preceding academic year by 10 
percent.’’; and 
(2) in paragraph (2), by striking ‘‘shall be de-
veloped’’ and all that follows through the period at 
the end and inserting ‘‘shall be developed— 
‘‘(A) for academic year 2008–2009, by in-
creasing each of the dollar amounts contained 
in such section as such section was in effect on 
the day before the date of enactment of the Col-
lege Cost Reduction Act of 2007 by a percent-
age equal to the estimated percentage increase 
in the Consumer Price Index (as determined by 
the Secretary) between December 2006 and the 
December next preceding the beginning of such 
academic year, and rounding the result to the 
nearest $10; and 
‘‘(B) for each academic year after 2012– 
2013, by increasing each of the dollar amounts 
contained in such section for academic year 
2012–2013 by a percentage equal to the esti-
mated percentage increase in the Consumer
Price Index (as determined by the Secretary) 
between December 2006 and the December 
next preceding the beginning of such academic 
year, and rounding the result to the nearest 
$10;’’. 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect on October 1, 
2008, and the amendment made by subsection (c) shall 
take effect on July 1, 2008. 
SEC. 103. SIMPLIFIED NEEDS TEST AND AUTOMATIC ZERO 
IMPROVEMENTS. 
(a) SIMPLIFIED NEEDS TEST.—Section 479 (20 
U.S.C. 1087ss) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1)(A)(i)— 
(i) in subclause (II), by striking ‘‘or’’ 
after the semicolon; 
(ii) by redesignating subclause (III) as 
subclause (IV); 
(iii) by inserting after subclause (II) 
the following: 
‘‘(III) 1 of whom is a dislocated 
worker; or’’; and
(iv) in subclause (IV) (as redesignated 
by clause (ii)), by striking ‘‘12-month’’ and 
inserting ‘‘24-month’’; and 
(B) in subparagraph (B)(i)— 
(i) in subclause (II), by striking ‘‘or’’ 
after the semicolon; 
(ii) by redesignating subclause (III) as 
subclause (IV); 
(iii) by inserting after subclause (II) 
the following: 
‘‘(III) 1 of whom is a dislocated 
worker; or’’; and 
(iv) in subclause (IV) (as redesignated 
by clause (ii)), by striking ‘‘12-month’’ and 
inserting ‘‘24-month’’; 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) in subparagraph (A)— 
(I) in clause (ii), by striking ‘‘or’’ 
after the semicolon; 
(II) by redesignating clause (iii) 
as clause (iv); 
(III) by inserting after clause (ii) 
the following:
‘‘(iii) 1 of whom is a dislocated work-
er; or’’; and 
(IV) in clause (iv) (as redesig-
nated by subclause (II)), by striking 
‘‘12-month’’ 
and 
inserting 
‘‘24- 
month’’; and 
(ii) in subparagraph (B), by striking 
‘‘$20,000’’ and inserting ‘‘$30,000’’; and 
(B) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) in clause (ii), by striking ‘‘or’’ 
after the semicolon; 
(II) by redesignating clause (iii) 
as clause (iv); 
(III) by inserting after clause (ii) 
the following: 
‘‘(iii) is a dislocated worker; or’’; and 
(IV) in clause (iv) (as redesig-
nated by subclause (II)), by striking 
‘‘12-month’’ 
and 
inserting 
‘‘24- 
month’’; and 
(ii) in subparagraph (B), by striking 
‘‘$20,000’’ and inserting ‘‘$30,000’’; and 
(C) in the flush matter following para-
graph (2)(B), by adding at the end the fol-
lowing: ‘‘The Secretary shall annually adjust 
the income level necessary to qualify an appli-
cant for the zero expected family contribution. 
The income level shall be adjusted according to 
increases in the Consumer Price Index, as de-
fined in section 478(f).’’; and 
(3) in subsection (d)— 
(A) 
by 
redesignating 
paragraphs 
(1) 
through (6) as subparagraphs (A) through (F), 
respectively; 
(B) by striking ‘‘(d) DEFINITION’’ and all 
that follows through ‘‘the term’’ and inserting 
the following: 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) DISLOCATED
WORKER.—The term ‘dis-
located worker’ has the meaning given the term in 
section 101 of the Workforce Investment Act of 
1998 (29 U.S.C. 2801). 
‘‘(2) MEANS-TESTED FEDERAL BENEFIT PRO-
GRAM.—The term’’. 
(b) DISCRETION OF STUDENT FINANCIAL AID AD-
MINISTRATORS.—Section 479A(a) (20 U.S.C. 1087tt(a)) 
is amended in the third sentence by inserting ‘‘a family 
member who is a dislocated worker (as defined in section 
101 of the Workforce Investment Act of 1998 (29 U.S.C.
2801)),’’ after ‘‘recent unemployment of a family mem-
ber,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall be effective on July 1, 2009. 
SEC. 104. DEFINITIONS. 
(a) TOTAL INCOME.—Section 480(a) (20 U.S.C. 
1087vv(a)) is amended— 
(1) in paragraph (1), by inserting before the pe-
riod at the end the following: ‘‘, except that the Sec-
retary may, by regulation, provide for the use of the 
previous tax year when and to the extent necessary 
to carry out the sense of Congress in section 133 of 
the College Cost Reduction Act of 2007’’; and 
(2) in paragraph (2)— 
(A) by striking ‘‘and no portion’’ and in-
serting ‘‘no portion’’; and 
(B) by inserting ‘‘and no distribution from 
any qualified education benefit described in sub-
section (f)(3) that is not subject to Federal in-
come tax,’’ after ‘‘1986,’’. 
(b) UNTAXED INCOME
AND BENEFITS.—Section 
480(b) (20 U.S.C. 1087vv(b)) is amended to read as fol-
lows: 
‘‘(b) UNTAXED INCOME AND BENEFITS.—
‘‘(1) The term ‘untaxed income and benefits’ 
means— 
‘‘(A) child support received; 
‘‘(B) workman’s compensation; 
‘‘(C) veteran’s benefits such as death pen-
sion, dependency, and indemnity compensation, 
but excluding veterans’ education benefits as 
defined in subsection (c); 
‘‘(D) interest on tax-free bonds; 
‘‘(E) housing, food, and other allowances 
(excluding rent subsidies for low-income hous-
ing) for military, clergy, and others (including 
cash payments and cash value of benefits); 
‘‘(F) cash support or any money paid on 
the student‘s behalf, except, for dependent stu-
dents, funds provided by the student’s parents; 
‘‘(G) untaxed portion of pensions; 
‘‘(H) payments to individual retirement ac-
counts and Keogh accounts excluded from in-
come for Federal income tax purposes; and 
‘‘(I) any other untaxed income and bene-
fits, such as Black Lung Benefits, Refugee As-
sistance, railroad retirement benefits, or Job 
Training Partnership Act noneducational bene-
fits or benefits received through participation in
employment and training activities under title I 
of the Workforce Investment Act of 1998. 
‘‘(2) The term ‘untaxed income and benefits’ 
shall not include the amount of additional child tax 
credit claimed for Federal income tax purposes.’’. 
(c) ASSETS.—Section 480(f) (20 U.S.C. 1087vv(f)) 
is amended— 
(1) in paragraph (3), by striking ‘‘shall not be 
considered an asset of a student for purposes of sec-
tion 475’’ and inserting ‘‘shall be considered an 
asset of the parent for purposes of section 475’’; 
(2) by redesignating paragraphs (4) and (5) as 
paragraphs (5) and (6), respectively; and 
(3) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) A qualified education benefit shall be con-
sidered an asset of the student for purposes of sec-
tion 476 and 477.’’. 
(d) 
OTHER
FINANCIAL
ASSISTANCE.—Section 
480(j)(2) (20 U.S.C. 1087vv(j)(2)) is amended by insert-
ing ‘‘, or a distribution that is not includable in gross in-
come under section 529 of such Code, under another pre-
paid tuition plan offered by a State, or under a Coverdell 
education savings account under section 530 of such 
Code,’’ after ‘‘1986’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall be effective on July 1, 2009. 
PART B—MAKING STUDENT LOANS MORE 
AFFORDABLE 
SEC. 111. INTEREST RATE REDUCTIONS. 
(a) FFEL INTEREST RATES.— 
(1) Section 427A(l) (20 U.S.C. 1077a(l)) is 
amended by adding at the end the following new 
paragraph: 
‘‘(4) REDUCED
RATES
FOR
UNDERGRADUATE 
SUBSIDIZED
LOANS.—Notwithstanding subsection 
(h) and paragraph (1) of this subsection, with re-
spect to any loan to an undergraduate student made, 
insured, or guaranteed under this part (other than 
a loan made pursuant to section 428B, 428C, or 
428H) for which the first disbursement is made on 
or after July 1, 2006, and before July 1, 2013, the 
applicable rate of interest shall be as follows: 
‘‘(A) For a loan for which the first dis-
bursement is made on or after July 1, 2006, 
and before July 1, 2008, 6.80 percent on the 
unpaid principal balance of the loan. 
‘‘(B) For a loan for which the first dis-
bursement is made on or after July 1, 2008,
and before July 1, 2009, 6.12 percent on the 
unpaid principal balance of the loan. 
‘‘(C) For a loan for which the first dis-
bursement is made on or after July 1, 2009, 
and before July 1, 2010, 5.44 percent on the 
unpaid principal balance of the loan. 
‘‘(D) For a loan for which the first dis-
bursement is made on or after July 1, 2010, 
and before July 1, 2011, 4.76 percent on the 
unpaid principal balance of the loan. 
‘‘(E) For a loan for which the first dis-
bursement is made on or after July 1, 2011, 
and before July 1, 2012, 4.08 percent on the 
unpaid principal balance of the loan. 
‘‘(F) For a loan for which the first dis-
bursement is made on or after July 1, 2012 
and before July 1, 2013, 3.40 percent on the 
unpaid principal balance of the loan.’’. 
(2) SPECIAL ALLOWANCE CROSS REFERENCE.— 
Section 
438(b)(2)(I)(ii)(II) 
(20 
U.S.C. 
1086(b)(2)(I)(ii)(II)) is amended by striking ‘‘sec-
tion 427A(l)(1)’’ and inserting ‘‘section 427A(l)(1) 
or (l)(4)’’.
(b) DIRECT
LOAN
INTEREST
RATES.—Section 
455(b)(7) (20 U.S.C. 1087e(b)(7)) is amended by adding 
at the end the following new subparagraph: 
‘‘(D) 
REDUCED
RATES
FOR
UNDER-
GRADUATE
FDSL.—Notwithstanding the pre-
ceding paragraphs of this subsection, for Fed-
eral Direct Stafford Loans made to under-
graduate students for which the first disburse-
ment is made on or after July 1, 2006, and be-
fore July 1, 2013, the applicable rate of interest 
shall be as follows: 
‘‘(i) For a loan for which the first dis-
bursement is made on or after July 1, 
2006, and before July 1, 2008, 6.80 per-
cent on the unpaid principal balance of the 
loan. 
‘‘(ii) For a loan for which the first 
disbursement is made on or after July 1, 
2008, and before July 1, 2009, 6.12 per-
cent on the unpaid principal balance of the 
loan. 
‘‘(iii) For a loan for which the first 
disbursement is made on or after July 1, 
2009, and before July 1, 2010, 5.44 per-
cent on the unpaid principal balance of the 
loan. 
‘‘(iv) For a loan for which the first 
disbursement is made on or after July 1, 
2010, and before July 1, 2011, 4.76 per-
cent on the unpaid principal balance of the 
loan. 
‘‘(v) For a loan for which the first 
disbursement is made on or after July 1, 
2011, and before July 1, 2012, 4.08 per-
cent on the unpaid principal balance of the 
loan. 
‘‘(vi) For a loan for which the first 
disbursement is made on or after July 1, 
2012, and before July 1, 2013, 3.40 per-
cent on the unpaid principal balance of the 
loan.’’. 
SEC. 112. INCREASES IN LOAN LIMITS. 
(a) INCREASE IN THIRD AND SUBSEQUENT YEAR 
LIMITS.— 
(1) FEDERAL
INSURANCE
LIMITS.—Section 
425(a)(1)(A)(iii) (20 U.S.C. 1075(a)(1)(A)(iii)) is 
amended by striking ‘‘$5,500’’ and inserting 
‘‘$7,500’’.
(2) 
GUARANTY
LIMITS.—Section 
428(b)(1)(A)(iii)(I) (20 U.S.C. 1078(b)(1)(A)(iii)(I)) 
is amended by striking ‘‘$5,500’’ and inserting 
‘‘$7,500’’. 
(b) INCREASE IN AGGREGATE LIMITS.— 
(1) FEDERAL
INSURANCE
LIMITS.—Section 
425(a)(2)(A) 
(20 
U.S.C. 
1075(a)(2)(A)(i)) 
is 
amended— 
(A) in clause (i), by striking ‘‘$23,000’’ 
and inserting ‘‘$30,500’’; and 
(B) in clause (ii), by striking ‘‘$65,500’’ 
and inserting ‘‘$73,000’’. 
(2) GUARANTY LIMITS.—Section 428(b)(1)(B) 
(20 U.S.C. 1078(b)(1)(A)(iii)(I)) is amended— 
(A) in clause (i), by striking ‘‘$23,000’’ 
and inserting ‘‘$30,500’’; and 
(B) in clause (ii), by striking ‘‘$65,500’’ 
and inserting ‘‘$73,000’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall be effective July 1, 2008. 
SEC. 113. REDUCTION OF LENDER SPECIAL ALLOWANCE 
PAYMENTS. 
Section 438(b)(2)(I) (20 U.S.C. 1087–1(b)(2)(I)) is 
amended—
(1) in clause (i), by striking ‘‘clauses (ii), (iii), 
and (iv)’’ and inserting ‘‘the following clauses’’; and 
(2) by adding at the end the following new 
clause: 
‘‘(vi) REDUCTION FOR LOANS ON OR 
AFTER OCTOBER 1, 2007.—With respect to 
a loan on which the applicable interest rate 
is determined under section 427A(l), the 
percentage to be added under clause 
(i)(III) in computing the special allowance 
payment pursuant to this subparagraph 
shall be the following: 
‘‘(I) IN
GENERAL
AND
PLUS 
LOANS.—1.79 percent in the case of a 
loan described in clause (i) or (iii) for 
which the first disbursement of prin-
cipal is made on or after October 1, 
2007. 
‘‘(II) IN SCHOOL AND GRACE PE-
RIOD.—1.19 percent in the case of a 
loan described in clause (ii)(II) for 
which the first disbursement of prin-
cipal is made on or after October 1, 
2007.
‘‘(III) CONSOLIDATION LOANS.— 
2.09 percent in the case of a loan de-
scribed in clause (iv) for which the 
first disbursement of principal is 
made on or after October 1, 2007’’. 
SEC. 114. ELIMINATION OF EXCEPTIONAL PERFORMER 
STATUS FOR LENDERS. 
(a) ELIMINATION OF STATUS.—Part B of title IV (20 
U.S.C. 1071 et seq.) is amended by striking section 428I 
(20 U.S.C. 1078–9). 
(b) CONFORMING AMENDMENTS.—Part B of title IV 
is further amended— 
(1) 
in 
section 
428(c)(1) 
(20 
U.S.C. 
1078(c)(1))— 
(A) by striking subparagraph (D); and 
(B) by redesignating subparagraphs (E) 
through (H) as subparagraphs (D) through 
(G), respectively; and 
(2) in section 438(b)(5) (20 U.S.C. 1087– 
1(b)(5)), by striking the matter following subpara-
graph (B). 
(c) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect on October 1, 
2007.
SEC. 115. REDUCTION OF LENDER INSURANCE PERCENT-
AGE. 
(a) AMENDMENT.—Subparagraph (G) of section 
428(b)(1) (20 U.S.C. 1078(b)(1)(G)) is amended to read 
as follows: 
‘‘(G) insures 95 percent of the unpaid 
principal of loans insured under the program, 
except that— 
‘‘(i) such program shall insure 100 
percent of the unpaid principal of loans 
made with funds advanced pursuant to sec-
tion 428(j) or 439(q); and 
‘‘(ii) notwithstanding the preceding 
provisions of this subparagraph, such pro-
gram shall insure 100 percent of the un-
paid principal amount of exempt claims as 
defined in subsection (c)(1)(G);’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect with respect to loans made 
on or after October 1, 2007. 
SEC. 116. GUARANTY AGENCY COLLECTION RETENTION. 
Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 
1078(c)(6)(A)(ii)) is amended to read as follows: 
‘‘(ii) an amount equal to 23 percent of 
such payments for use in accordance with 
section 422B, except that beginning Octo-
ber 1, 2007, this subparagraph shall be ap-
plied by substituting ‘16 percent’ for ‘23 
percent’.’’. 
SEC. 117. UNIT COSTS FOR ACCOUNT MAINTENANCE FEES. 
Section 458(b) (20 U.S.C. 1087h(b)) is amended— 
(1) by striking ‘‘Account’’ and inserting the fol-
lowing: 
‘‘(1) FOR FISCAL YEARS 2006 AND 2007.—For 
fiscal years 2006 and 2007, account’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) FOR FISCAL YEAR 2008 AND SUCCEEDING 
FISCAL YEARS.— 
‘‘(A) UNIT COST BASIS.—For fiscal year 
2008 and each succeeding fiscal year, the Sec-
retary shall calculate the account maintenance 
fees payable to guaranty agencies under sub-
section (a)(3), on a per-loan cost basis in ac-
cordance with subparagraph (B) of this para-
graph. 
‘‘(B) 
DETERMINATIONS.—To 
determine 
the amount that shall be paid under subsection 
(a)(3) per outstanding loan guaranteed by a 
guaranty agency for fiscal year 2008 and suc-
ceeding fiscal years, the Secretary shall—
‘‘(i) establish the per-loan cost basis 
amount by— 
‘‘(I) dividing the total amount of 
account maintenance fees paid under 
subsection (a)(3) in fiscal year 2006, 
by 
‘‘(II) the number of loans under 
part B that were outstanding in that 
fiscal year; and 
‘‘(ii) determine on October 1 of fiscal 
year 2008 and each subsequent fiscal year, 
and pay to each guaranty agency, an 
amount equal to the product of the number 
of loans under part B that are outstanding 
on October 1 of that fiscal year and in-
sured by that guaranty agency multiplied 
by— 
‘‘(I) 
the 
amount 
determined 
under clause (i); increased by 
‘‘(II) a percentage equal to the 
percentage increase in the GDP price 
index (as determined by the Bureau 
of Labor Statistics of the Department 
of Labor) between the calendar quar-
ter ending on June 30, 2006, and the