SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of contents. 
Sec. 2. References. 
Sec. 3. Effective date. 
TITLE I—GENERAL PROVISIONS 
Sec. 101. General provisions. 
TITLE II—TEACHER QUALITY ENHANCEMENT 
Sec. 201. Teacher quality enhancement. 
TITLE III—INSTITUTIONAL AID 
Sec. 301. Institutional aid. 
Sec. 302. Multiagency study of minority science programs. 
TITLE IV—STUDENT ASSISTANCE 
Sec. 401. Grants to students in attendance at institutions of higher education. 
Sec. 402. Federal Family Education Loan Program. 
Sec. 403. Federal work-study programs. 
Sec. 404. Federal Direct Loan Program. 
Sec. 405. Federal Perkins Loans. 
Sec. 406. Need analysis. 
Sec. 407. General provisions of title IV. 
Sec. 408. Program integrity. 
Sec. 409. PLUS loan auction extension. 
TITLE V—DEVELOPING INSTITUTIONS 
Sec. 501. Developing institutions. 
TITLE VI—INTERNATIONAL EDUCATION PROGRAMS 
Sec. 601. International education programs. 
TITLE VII—GRADUATE AND POSTSECONDARY IMPROVEMENT 
Sec. 701. Graduate and postsecondary improvement programs. 
TITLE VIII—ADDITIONAL PROGRAMS 
Sec. 801. Additional programs. 
Sec. 802. Amendments to other higher education Acts. 
SEC. 2. REFERENCES. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.). 
SEC. 3. EFFECTIVE DATE. 
Except as otherwise provided in this Act, the amend-
ments made by this Act shall take effect as if enacted on 
the date of the enactment of the Higher Education Oppor-
tunity Act (Public Law 110–315). 
TITLE I—GENERAL PROVISIONS 
SEC. 101. GENERAL PROVISIONS. 
(a) HIGHER EDUCATION OPPORTUNITY ACT.—Sec-
tion 101(b) of Higher Education Opportunity Act (Public 
Law 110–315) is amended by striking ‘‘July 1, 2010’’ and 
inserting ‘‘the date of the enactment of this Act’’. 
(b) HIGHER EDUCATION ACT OF 1965.— 
(1) AMENDMENTS.—Title I (20 U.S.C. 1001 et 
seq.) is amended— 
(A) in section 102(a)(2)(A)(iii) (20 U.S.C. 
1002(a)(2)(A)(iii)), 
as 
added 
by 
section 
102(a)(1)(D) of the Higher Education Oppor-
tunity Act (Public Law 110–315), in the matter 
preceding subclause (I), by striking ‘‘States—’’ 
and inserting ‘‘States (other than a public or 
private nonprofit nursing school located outside 
of the United States that was participating in
the program under part B of title IV on August 
13, 2008)—’’; 
(B) in section 102(a)(2)(D) (20 U.S.C. 
1002(a)(2)(D)), by striking ‘‘under part B’’ 
and inserting ‘‘under part B of title IV’’; 
(C) in section 111(b) (20 U.S.C. 1011(b)), 
by striking ‘‘With’’ and inserting ‘‘with’’; 
(D) in section 131(a)(3)(A)(iii)(I) (20 
U.S.C. 1015(a)(3)(A)(iii)(I)), by striking ‘‘sec-
tion 428(a)(2)(C)(i)’’ and inserting ‘‘section 
428(a)(2)(C)(ii)’’; 
(E) in section 136(d)(1) (20 U.S.C. 
1015e(d)(1)), by striking ‘‘(Family Educational 
Rights and Privacy Act of 1974)’’ and inserting 
‘‘(commonly known as the ‘Family Educational 
Rights and Privacy Act of 1974’)’’; 
(F) in section 141 (20 U.S.C. 1018)— 
(i) in the matter preceding subpara-
graph (A) of subsection (c)(3), by striking 
‘‘under this title’’ and inserting ‘‘under 
title IV’’; and 
(ii) in subsection (d)(3), by striking 
‘‘appropriate committees of Congress’’ and 
inserting ‘‘authorizing committees’’; and
(G) in section 153(a)(1)(B)(iii)(V) (20 
U.S.C. 
1019b(a)(1)(B)(iii)(V)), 
by 
striking 
‘‘borrowers who take out loans under’’ each 
place the term appears and inserting ‘‘bor-
rowers of loans made under’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1)(A) of subsection (b) shall be effec-
tive as if enacted as part of the amendment in sec-
tion 102(a)(1)(D) of the Higher Education Oppor-
tunity Act (Public Law 110–315), and shall take ef-
fect on July 1, 2010. 
TITLE II—TEACHER QUALITY 
ENHANCEMENT 
SEC. 201. TEACHER QUALITY ENHANCEMENT. 
Title II (20 U.S.C. 1021 et seq.) is amended— 
(1) in section 202 (20 U.S.C. 1022a)— 
(A) in subsection (b)(6)(E)(ii), by striking 
‘‘section 1111(b)(2)’’ and inserting ‘‘section 
1111(b)(1)’’; and 
(B) in subsection (i)(3), by striking ‘‘con-
sent of’’ and inserting ‘‘consent to’’; and 
(2) 
in 
section 
231(a)(1) 
(20 
U.S.C. 
1032(a)(1)), by striking ‘‘serve graduate’’ and in-
serting ‘‘assist in the graduation of’’.
TITLE III—INSTITUTIONAL AID 
SEC. 301. INSTITUTIONAL AID. 
Title III (20 U.S.C. 1051 et seq.) is amended— 
(1) in section 316 (20 U.S.C. 1059c)— 
(A) in subsection (a), by striking ‘‘Indian 
Tribal’’ and inserting ‘‘Tribal’’; 
(B) in subsection (b)— 
(i) in paragraph (1), by striking ‘‘the 
Tribally Controlled College or University 
Assistance Act of 1978’’ and inserting ‘‘the 
Tribally Controlled Colleges and Univer-
sities Assistance Act of 1978’’; 
(ii) in paragraph (2), by striking ‘‘the 
Tribally Controlled College or University 
Assistance Act of 1978’’ and inserting ‘‘the 
Tribally Controlled Colleges and Univer-
sities Assistance Act of 1978’’; and 
(iii) in paragraph (3)(A), by striking 
‘‘the Navajo Community College Assistance 
Act of 1978’’ and inserting ‘‘the Navajo 
Community College Act’’; and 
(C) in subsection (d)(4)(A), by striking 
‘‘part B’’ and inserting ‘‘part B of this title’’; 
(2) in section 318 (20 U.S.C. 1059e)—
(A) by amending subsection (b)(1)(F) to 
read as follows: 
‘‘(F) is not receiving assistance under— 
‘‘(i) part B of this title; 
‘‘(ii) part A of title V; or 
‘‘(iii) an annual authorization of ap-
propriations under the Act of March 2, 
1867 (14 Stat. 438; 20 U.S.C. 123).’’; and 
(B) in subsection (i), by striking ‘‘part B, 
or’’ and inserting ‘‘part B of this title, or’’; 
(3) 
in 
section 
319(d)(3)(A) 
(20 
U.S.C. 
1059f(d)(3)(A)), by striking ‘‘part B, or’’ and in-
serting ‘‘part B of this title, or’’; 
(4) 
in 
section 
320(d)(3)(A) 
(20 
U.S.C. 
1059g(d)(3)(A)), by striking ‘‘part B, or’’ and in-
serting ‘‘part B of this title, or’’; 
(5) in section 323(a) (20 U.S.C. 1062(a)), by 
striking ‘‘in any fiscal year’’ and inserting ‘‘for any 
fiscal year’’; 
(6) in section 324(d) (20 U.S.C. 1063(d))— 
(A) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B), respectively; 
(B) by striking ‘‘Notwithstanding sub-
sections (a)’’ and inserting ‘‘(1) Notwith-
standing subsections (a)’’; and
(C) by adding at the end the following: 
‘‘(2) If the amount appropriated pursuant to section 
399(a)(2)(A) for any fiscal year is not sufficient to pay 
the minimum allotment required by paragraph (1) of this 
subsection to all part B institutions, the amount of such 
minimum allotments shall be ratably reduced. If additional 
sums become available for such fiscal year, such reduced 
allocations shall be increased on the same basis as the 
basis on which they were reduced (until the amount allot-
ted equals the minimum allotment required by paragraph 
(1)).’’; 
(7) in section 351(a) (20 U.S.C. 1067a(a))— 
(A) by striking ‘‘section 304(a)(1)’’ and in-
serting ‘‘section 303(a)(1)’’; and 
(B) by striking ‘‘of 1979’’; 
(8) in section 355(a) (20 U.S.C. 1067e(a)), by 
striking ‘‘302’’ and inserting ‘‘312’’; 
(9) in section 371(c) (20 U.S.C. 1067q(c))— 
(A) in paragraph (3)(D), by striking 
‘‘402A(g)’’ and inserting ‘‘402A(h)’’; 
(B) 
in 
paragraph 
(4), 
by 
striking 
‘‘402A(g)’’ and inserting ‘‘402A(h)’’; and 
(C) in paragraph (9)—
(i) in subparagraph (C)(iii), by strik-
ing ‘‘402A(g)’’ and inserting ‘‘402A(h)’’; 
and 
(ii) by amending subparagraph (F) to 
read as follows: 
‘‘(F) is not receiving assistance under— 
‘‘(i) part B of this title; 
‘‘(ii) part A of title V; or 
‘‘(iii) an annual authorization of ap-
propriations under the Act of March 2, 
1867 (14 Stat. 438; 20 U.S.C. 123).’’; and 
(10) 
in 
section 
392(a)(6) 
(20 
U.S.C. 
1068a(a)(6)), by striking ‘‘College or University’’ 
and inserting ‘‘Colleges and Universities’’. 
SEC. 302. MULTIAGENCY STUDY OF MINORITY SCIENCE 
PROGRAMS. 
Section 1024 (20 U.S.C. 1067d) is repealed. 
TITLE IV—STUDENT ASSISTANCE 
SEC. 401. GRANTS TO STUDENTS IN ATTENDANCE AT INSTI-
TUTIONS OF HIGHER EDUCATION. 
(a) AMENDMENTS.—Part A of title IV (20 U.S.C. 
1070 et seq.) is amended— 
(1) in section 400(b) (20 U.S.C. 1070(b)), by 
striking ‘‘1 through 8’’ and inserting ‘‘1 through 9’’; 
(2) in section 401 (20 U.S.C. 1070a)—
(A) in the second sentence of subsection 
(a)(1), by striking ‘‘manner,,’’ and inserting 
‘‘manner,’’; 
(B) in subsection (b)(1), by striking ‘‘sec-
tion 401’’ and inserting ‘‘this section’’; and 
(C) in subsection (b)(9)(A)— 
(i) 
in 
clause 
(vi), 
by 
striking 
‘‘$105,000,000’’ 
and 
inserting 
‘‘$140,000,000’’; and 
(ii) in clause (viii), by striking 
‘‘$4,400,000,000’’ 
and 
inserting 
‘‘$4,470,000,000’’; 
(3) by striking paragraph (4) of section 401(f) 
(20 U.S.C. 1070a(f)), as added by section 401(c) of 
the Higher Education Opportunity Act (Public Law 
110–315); 
(4) in section 402A (20 U.S.C. 1070a–11)— 
(A) in subsection (b)(1), by striking ‘‘orga-
nizations including’’ and inserting ‘‘organiza-
tions, including’’; and 
(B) in subsection (c)(8)(C)(iv)(I), by in-
serting ‘‘to be’’ after ‘‘determined’’; 
(5) in section 402E(d)(2)(C) (20 U.S.C. 
1070a–15(d)(2)(C)), by striking ‘‘320.’’ and insert-
ing ‘‘320’’;
(6) in section 419C(b)(1) (20 U.S.C. 1070d– 
33(b)(1)), by inserting ‘‘and’’ after the semicolon at 
the end; and 
(7) in section 419D(d) (20 U.S.C. 1070d– 
34(d)), by striking ‘‘1134’’ and inserting ‘‘134’’. 
(b) HIGHER EDUCATION OPPORTUNITY ACT.—Sec-
tion 404 of the Higher Education Opportunity Act (Public 
Law 110–315) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(i) EFFECTIVE DATE.—The amendments made by 
subsection (e) of this section shall apply only with respect 
to grant awards made on or after the date of enactment 
of this Act.’’. 
SEC. 402. FEDERAL FAMILY EDUCATION LOAN PROGRAM. 
(a) AMENDMENT TO PROVISION AMENDED BY THE 
COLLEGE COST REDUCTION AND ACCESS ACT.— 
(1) IN GENERAL.—Section 428(b)(1)(G)(i) (20 
U.S.C. 1078(b)(1)(G)(i)), as amended by section 
303 of the College Cost Reduction and Access Act 
(Public Law 110–84), is amended by striking ‘‘or 
439(q)’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall be effective as if enacted as 
part of the amendment in section 303(a) of the Col-
lege Cost Reduction and Access Act (Public Law
110–84), and shall take effect on October 1, 2012, 
and apply with respect to loans made on or after 
such date. 
(b) ENTRANCE COUNSELING FUNCTIONS.— 
(1) GUARANTY
AGENCIES.—Section 428(b)(3) 
(20 U.S.C. 1078(b)(3)) is amended— 
(A) in subparagraph (C), by inserting ‘‘or 
485(l)’’ after ‘‘section 485(b)’’; and 
(B) in subparagraph (D), by inserting ‘‘or 
485(l)’’ after ‘‘section 485(b)’’. 
(2) ELIGIBLE
LENDERS.—Section 435(d)(5) 
(20 U.S.C. 1085(d)(5)) is amended— 
(A) in subparagraph (E), by inserting ‘‘or 
485(l)’’ after ‘‘section 485(b)’’; and 
(B) in subparagraph (F), by inserting ‘‘or 
485(l)’’ after ‘‘section 485(b)’’. 
(c) AMENDMENT TO PROVISION AMENDED BY THE 
HIGHER EDUCATION OPPORTUNITY ACT.— 
(1) IN GENERAL.—Section 428C(c)(3)(A) (20 
U.S.C. 1078–3(c)(3)(A)), as amended by section 425 
of the Higher Education Opportunity Act (Public 
Law 110–315), is amended by striking ‘‘section 
493C’’ and inserting ‘‘section 493C,’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall be effective as if enacted as
part of the amendment in section 425(d)(1) of the 
Higher Education Opportunity Act (Public Law 
110–315), and shall take effect on July 1, 2009. 
(d) REHABILITATION OF STUDENT LOANS.— 
(1) Section 428F (20 U.S.C. 1078–6) is 
amended— 
(A) in subsection (a)— 
(i) by amending paragraph (1) to read 
as follows: 
‘‘(1) SALE OR ASSIGNMENT OF LOAN.— 
‘‘(A) IN GENERAL.—Each guaranty agen-
cy, upon securing 9 payments made within 20 
days of the due date during 10 consecutive 
months of amounts owed on a loan for which 
the Secretary has made a payment under para-
graph (1) of section 428(c), shall— 
‘‘(i) if practicable, sell the loan to an 
eligible lender; or 
‘‘(ii) on or before September 30, 
2011, assign the loan to the Secretary if— 
‘‘(I) the Secretary has deter-
mined that market conditions unduly 
limit a guaranty agency’s ability to 
sell loans under clause (i); and
‘‘(II) the guaranty agency has 
been unable to sell loans under clause 
(i). 
‘‘(B) MONTHLY PAYMENTS.—Neither the 
guaranty agency nor the Secretary shall de-
mand from a borrower as monthly payments 
amounts described in subparagraph (A) more 
than is reasonable and affordable based on the 
borrower’s total financial circumstances. 
‘‘(C) CONSUMER REPORTING AGENCIES.— 
‘‘(i) NOTICE
OF
SALE
OR
ASSIGN-
MENT.—Upon the sale or assignment of a 
loan under this paragraph, the guaranty 
agency or other holder of the loan shall re-
port that sale or assignment to any con-
sumer reporting agency to which the guar-
anty agency or other holder reported the 
default of the loan, and request that the 
record of default be removed from the bor-
rower’s credit history. 
‘‘(ii) REMOVAL
FROM
CREDIT
RE-
PORTS.—Notwithstanding paragraphs (4) 
and (5) of section 605(a) of the Fair Cred-
it Reporting Act (15 U.S.C. 1681c(a)(4) 
and (5)) and section 430A(f) of this Act,
no consumer reporting agency shall include 
adverse information on any loan sold or as-
signed under this paragraph (or any de-
faulted loan held by the Secretary, on 
which the borrower has made 9 payments 
within 20 days of the due date during 10 
consecutive months of amounts owed on 
the defaulted loan), in a report regarding 
a borrower whose loan is reported sold or 
assigned by the guaranty agency (or a bor-
rower of a defaulted loan who is reported 
by the Secretary as having made such pay-
ments). The consumer reporting agency 
shall, within 10 days of receiving such no-
tice from the guaranty agency (or the Sec-
retary, as the case may be) of such sale or 
assignment, exclude such adverse informa-
tion from any reports. 
‘‘(D) DUTIES UPON SALE.—With respect 
to a loan sold under subparagraph (A)(i)— 
‘‘(i) the guaranty agency— 
‘‘(I) shall repay the Secretary 
81.5 percent of the amount of the 
principal balance outstanding at the 
time of such sale, multiplied by the re-
insurance percentage in effect when 
payment under the guaranty agree-
ment was made with respect to the 
loan; and 
‘‘(II) may, in order to defray col-
lection costs— 
‘‘(aa) charge to the borrower 
an amount of not to exceed 18.5 
percent of the outstanding prin-
cipal and interest at the time of 
the loan sale; and 
‘‘(bb) retain such amount 
from the proceeds of the loan 
sale; and 
‘‘(ii) the Secretary shall reinstate the 
Secretary’s obligation to— 
‘‘(I) 
reimburse 
the 
guaranty 
agency for the amount that the agen-
cy may, in the future, expend to dis-
charge its guaranty obligation; and 
‘‘(II) pay to the holder of such 
loan a special allowance pursuant to 
section 438.
‘‘(E) DUTIES
UPON
ASSIGNMENT.—With 
respect to a loan assigned under subparagraph 
(A)(ii)— 
‘‘(i) the guaranty agency shall add to 
the principal and interest outstanding at 
the time of the assignment of such loan an 
amount equal to the amount described in 
subparagraph (D)(i)(II); and 
‘‘(ii) the Secretary shall pay the guar-
anty agency, for deposit in the agency’s 
Operating Fund established pursuant to 
section 422B, an amount equal to the 
amount added to the principal and interest 
outstanding at the time of the assignment 
in accordance with clause (i). 
‘‘(F) ELIGIBLE
LENDER
LIMITATION.—A 
loan shall not be sold to an eligible lender under 
subparagraph (A)(i) if such lender has been 
found by the guaranty agency or the Secretary 
to have substantially failed to exercise the due 
diligence required of lenders under this part. 
‘‘(G) DEFAULT DUE TO ERROR.—A loan 
that does not meet the requirements of sub-
paragraph (A) may also be eligible for sale or 
assignment under this paragraph upon a deter-