•HR 2669 EH1S 
‘‘(7) describe the extent to which programs in 
the academic discipline for which the application is 
made have had a favorable reception by public and 
private sector employers; 
‘‘(8) describe the extent to which the institution 
is committed to extending cooperative education on 
an institution-wide basis for all students who can 
benefit; 
‘‘(9) describe the plans that the applicant will 
carry out to evaluate the applicant’s cooperative edu-
cation program at the end of the grant period; 
‘‘(10) provide for such fiscal control and fund 
accounting procedures as may be necessary to assure 
proper disbursement of, and accounting for, Federal 
funds paid to the applicant under this title; 
‘‘(11) demonstrate a commitment to serving all 
underserved populations; and 
‘‘(12) include such other information as is es-
sential to carry out the provisions of this title. 
‘‘(c) DURATION OF GRANTS; FEDERAL SHARE.— 
‘‘(1) DURATION OF GRANTS.—No individual in-
stitution of higher education may receive, individ-
ually or as a participant in a combination of such in-
stitutions—
•HR 2669 EH1S 
‘‘(A) a grant pursuant to subsection 
(a)(1)(A) for more than 5 fiscal years; or 
‘‘(B) a grant pursuant to subsection 
(a)(1)(B) for more than 5 fiscal years. 
‘‘(2) FEDERAL SHARE.—The Federal share of a 
grant under section 803(a)(1)(A) may not exceed— 
‘‘(A) 85 percent of the cost of carrying out 
the program or activities described in the appli-
cation in the first year the applicant receives a 
grant under this section; 
‘‘(B) 70 percent of such cost in the second 
such year; 
‘‘(C) 55 percent of such cost in the third 
such year; 
‘‘(D) 40 percent of such cost in the fourth 
such year; and 
‘‘(E) 25 percent of such cost in the fifth 
such year. 
‘‘(3) SPECIAL RULE.—Any provision of law to 
the contrary notwithstanding, the Secretary shall not 
waive the provisions of this subsection. 
‘‘(d) MAINTENANCE OF EFFORT.—If the Secretary 
determines that a recipient of funds under this section has 
failed to maintain the fiscal effort described in subsection
•HR 2669 EH1S 
(b)(3), then the Secretary may elect not to make grant 
payments under this section to such recipient. 
‘‘SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; 
TRAINING AND RESOURCE CENTERS; AND RE-
SEARCH. 
‘‘(a) AUTHORIZATION.—The Secretary is authorized, 
in accordance with the provisions of this section, to make 
grants and enter into contracts— 
‘‘(1) from the amounts available in each fiscal 
year under section 802(b)(3), for the conduct of 
demonstration projects designed to demonstrate or 
determine the feasibility or value of innovative meth-
ods of cooperative education; 
‘‘(2) from the amounts available in each fiscal 
year under section 802(b)(4), for the conduct of 
training and resource centers designed to— 
‘‘(A) train personnel in the field of cooper-
ative education; 
‘‘(B) improve materials used in cooperative 
education programs if such improvement is con-
ducted in conjunction with other activities de-
scribed in this paragraph; 
‘‘(C) furnish technical assistance to institu-
tions of higher education to increase the poten-
tial of the institution to continue to conduct a
•HR 2669 EH1S 
cooperative education program without Federal 
assistance; 
‘‘(D) encourage model cooperative edu-
cation programs which furnish education and 
training in occupations in which there is a na-
tional need; 
‘‘(E) support partnerships under which an 
institution carrying out a comprehensive cooper-
ative education program joins with one or more 
institutions of higher education in order to— 
‘‘(i) assist the institutions other than 
the comprehensive cooperative education 
institution to develop and expand an exist-
ing program of cooperative education; or 
‘‘(ii) establish and improve or expand 
comprehensive cooperative education pro-
grams; and 
‘‘(F) encourage model cooperative edu-
cation programs in the fields of science and 
mathematics for women and minorities who are 
underrepresented in such fields; and 
‘‘(3) from the amounts available in each fiscal 
year under section 802(b)(5), for the conduct of re-
search relating to cooperative education. 
‘‘(b) ADMINISTRATIVE PROVISION.—
•HR 2669 EH1S 
‘‘(1) IN GENERAL.—To carry out this section, 
the Secretary may— 
‘‘(A) make grants to or contracts with in-
stitutions of higher education, or combinations 
of such institutions; and 
‘‘(B) make grants to or contracts with 
other public or private nonprofit agencies or or-
ganizations, whenever such grants or contracts 
will make an especially significant contribution 
to attaining the objectives of this section. 
‘‘(2) LIMITATION.— 
‘‘(A) The Secretary may not use more than 
3 percent of the amount appropriated to carry 
out this section in each fiscal year to make 
grants or enter into contracts described in para-
graph (1)(A). 
‘‘(B) The Secretary may use not more 
than 3 percent of the amount appropriated to 
carry out this section in each fiscal year to 
make grants or enter into contracts described in 
paragraph (1)(B). 
‘‘(c) SUPPLEMENT NOT SUPPLANT.—A recipient of 
a grant or contract under this section may use the funds 
provided only to supplement and, to the extent possible, 
increase the level of funds that would, in the absence of
•HR 2669 EH1S 
such funds, be made available from non-Federal sources 
to carry out the activities supported by such grant or con-
tract, and in no case to supplant such funds from non- 
Federal sources. 
‘‘PART B—LOW TUITION 
‘‘SEC. 811. INCENTIVES AND REWARDS FOR LOW TUITION. 
‘‘(a) REWARDS FOR LOW TUITION.— 
‘‘(1) COMPETITIVE
GRANTS.—The Secretary 
shall award grants on a competitive basis to institu-
tions of higher education that, for academic year 
2008–2009 or any succeeding academic year, have 
an annual net tuition increase (expressed as a per-
centage) for the most recent academic year for 
which satisfactory data is available that is equal to 
or less than the percentage change in the higher 
education price index for such academic year. 
‘‘(2) USE OF FUNDS.—Funds awarded to an in-
stitution of higher education under paragraph (1) 
shall be distributed by the institution in the form of 
need-based grant aid to students who are eligible for 
Federal Pell Grants, except that no student shall re-
ceive an amount under this section that would cause 
the amount of total financial aid received by such 
student to exceed the cost of attendance of the insti-
tution.
•HR 2669 EH1S 
‘‘(b) REWARDS FOR GUARANTEED TUITION.— 
‘‘(1) BONUS.—For each institution of higher 
education that the Secretary of Education deter-
mines complies with the requirements of paragraph 
(2) or (3) of this subsection, the Secretary shall pro-
vide to such institution a bonus amount. Such insti-
tution shall award the bonus amount first to stu-
dents who are eligible for Federal Pell Grants who 
were in attendance at the institution during the 
award year that such institution satisfied the eligi-
bility criteria for maintaining low tuition and fees, 
then to students who are eligible for Federal Pell 
Grants who were not in attendance at the institution 
during such award year, in the form of need-based 
aid. 
‘‘(2) 4-YEAR INSTITUTIONS.—An institution of 
higher education that provides a program of instruc-
tion for which it awards a bachelor’s degree complies 
with the requirements of this paragraph if such in-
stitution guarantees that for any academic year be-
ginning on or after July 1, 2008, and for each of the 
4 succeeding continuous academic years, the net tui-
tion charged to an undergraduate student will not 
exceed—
•HR 2669 EH1S 
‘‘(A) the amount that the student was 
charged for an academic year at the time he or 
she first enrolled in the institution of higher 
education, plus 
‘‘(B) the product of the percentage in-
crease in the higher education price index for 
the prior academic year, or the most recent 
prior academic year for which data is available, 
multiplied by the amount determined under 
subparagraph (A). 
‘‘(3) LESS-THAN
4-YEAR
INSTITUTIONS.—An 
institution of higher education that does not provide 
a program of instruction for which it awards a bach-
elor’s degree complies with the requirements of this 
paragraph if such institution guarantees that for 
any academic year (or the equivalent) beginning on 
or after July 1, 2008, and for each of the 1.5 suc-
ceeding continuous academic years, the net tuition 
charged to an undergraduate student will not ex-
ceed— 
‘‘(A) the amount that the student was 
charged for an academic year at the time he or 
she first enrolled in the institution of higher 
education, plus
•HR 2669 EH1S 
‘‘(B) the product of the percentage in-
crease in the higher education price index for 
the prior academic year, or the most recent 
prior academic year for which data is available, 
multiplied by the amount determined under 
subparagraph (A). 
‘‘(c) MAINTAINING AFFORDABLE TUITION.— 
‘‘(1) INSTITUTION REPORTS.—If an institution 
of higher education has an increase in annual net 
tuition (expressed as a percentage), for the most re-
cent academic year for which satisfactory data is 
available, that is greater than the percentage in-
crease in the higher education price index for such 
academic year, the institution is required to submit 
to the Secretary the following information, within 6 
months of such determination— 
‘‘(A) a report on the factors contributing 
to the increase in the institution’s costs and the 
increase in net tuition and fees charged to stu-
dents, including identification of the major 
areas in the institution’s budget with the great-
est cost increases; 
‘‘(B) the institution’s 3 most recent Form 
990s submitted to the Internal Revenue Serv-
•HR 2669 EH1S 
ice, as required under section 6033 of the Inter-
nal Revenue Code of 1986; 
‘‘(C) a description of the major areas of 
expenditures in the institution’s budget with the 
greatest increase for such academic year; and 
‘‘(D) voluntary actions being taken by the 
institution to reduce net tuition. 
‘‘(2) REPORT
TO
CONGRESS.—The Secretary 
shall compile the information submitted under this 
subsection and shall provide to the relevant author-
izing committees an annual report relating to such 
information. 
‘‘(d) PRIORITY.—In awarding incentives and rewards 
under this section, the Secretary shall give priority to in-
stitutions of higher education with the lowest annual net 
tuition increase for the most recent academic year for 
which satisfactory data is available, when compared with 
other institutions of higher education with annual net tui-
tion increases that are equal to or less than the higher 
education price index for such academic year. 
‘‘(e) EXEMPTIONS.—An institution shall still be eligi-
ble to receive rewards under subsections (a) and (b), and 
will not be penalized under subsection (c) if, for any 2- 
year interval for which net tuition is computed under such 
subsections—
•HR 2669 EH1S 
‘‘(1) with respect to the class of institutions de-
scribed in section 131(d)(5) to which the institution 
belongs, the net tuition of the institution is in the 
lowest quartile of institutions within such class, as 
determined by the Secretary, during the last year of 
such 2-year interval; or 
‘‘(2) the institution has a percentage change in 
its net tuition computed under subsection (a) or (c) 
that exceeds the rate of change in the higher edu-
cation price index (as defined in section 401B(d)) 
over the same time period, but the dollar amount of 
the net tuition increase is less than $500. 
‘‘(f) DEFINITIONS.— 
‘‘(1) NET TUITION.—The term ‘net tuition’ has 
the same meaning as provided in section 131(h). 
‘‘(2) HIGHER EDUCATION PRICE INDEX.—The 
term ‘higher education price index’ has the same 
meaning as provided in section 131(h). 
‘‘(g) FUNDING.—There shall be available to the Sec-
retary to carry out this section, from funds not otherwise 
appropriated, $15,000,000 for each of the fiscal years 
2008 through 2012. 
‘‘(h) SUNSET.—The authority to carry out this sec-
tion shall expire at the end of fiscal year 2012.’’.