H. R. 4137—215 
‘‘(i) ordered to or retained on active duty under 
section 688, 12301(a), 12301(g), 12302, 12304, or 12305 
of title 10, United States Code, or under section 331, 
332, 359, 360, 367, or 712 of title 14, United States 
Code; 
‘‘(ii) ordered to or retained on active duty (other 
than for training) under any provision of law because 
of a war or national emergency declared by the Presi-
dent or the Congress, as determined by the Secretary 
concerned; 
‘‘(iii) ordered to active duty (other than for 
training) in support, as determined by the Secretary 
concerned, of an operational mission for which per-
sonnel have been ordered to active duty under section 
12304 of title 10, United States Code; 
‘‘(iv) ordered to active duty in support, as deter-
mined by the Secretary concerned, of a critical mission 
or requirement of the Armed Forces (including the 
National Guard or Reserve); or 
‘‘(v) called into Federal service as a member of 
the National Guard under chapter 15 of title 10, United 
States Code, or section 12406 of title 10, United States 
Code. 
‘‘(4) NOTIFICATION OF INTENT TO RETURN.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), a student referred to in subsection (a) shall, upon 
the completion of a period of service in the uniformed 
services, notify the institution of higher education of the 
student’s intent to return to the institution not later than 
three years after the completion of the period of service. 
‘‘(B) HOSPITALIZATION OR CONVALESCENCE.—A student 
who is hospitalized for or convalescing from an illness 
or injury incurred in or aggravated during the performance 
of service in the uniformed services shall notify the institu-
tion of higher education of the student’s intent to return 
to the institution not later than two years after the end 
of the period that is necessary for recovery from such 
illness or injury. 
‘‘(C) SPECIAL RULE.—A student who fails to apply for 
readmission within the period described in this section 
shall not automatically forfeit such eligibility for readmis-
sion to the institution of higher education, but shall be 
subject to the institution of higher education’s established 
leave of absence policy and general practices. 
‘‘(5) DOCUMENTATION.— 
‘‘(A) IN GENERAL.—A student who submits an applica-
tion for readmission to an institution of higher education 
under this section shall provide to the institution of higher 
education documentation to establish that— 
‘‘(i) the student has not exceeded the service limita-
tions established under this section; and 
‘‘(ii) the student’s eligibility for readmission has 
not been terminated due to an exception in subsection 
(d). 
‘‘(B) 
PROHIBITED
DOCUMENTATION
DEMANDS.—An 
institution of higher education may not delay or attempt 
to avoid a readmission of a student under this section
H. R. 4137—216 
by demanding documentation that does not exist, or is 
not readily available, at the time of readmission. 
‘‘(6) NO CHANGE IN ACADEMIC STATUS.—A student who is 
readmitted to an institution of higher education under this 
section shall be readmitted with the same academic status 
as such student had when such student last attended the 
institution of higher education. 
‘‘(d) EXCEPTION FROM READMISSION ELIGIBILITY.—A student’s 
eligibility for readmission to an institution of higher education 
under this section by reason of such student’s service in the uni-
formed services terminates upon the occurrence of any of the fol-
lowing events: 
‘‘(1) A separation of such person from the Armed Forces 
(including the National Guard and Reserves) with a dishonor-
able or bad conduct discharge. 
‘‘(2) A dismissal of such person permitted under section 
1161(a) of title 10, United States Code. 
‘‘(3) A dropping of such person from the rolls pursuant 
to section 1161(b) of title 10, United States Code.’’. 
SEC. 488. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION 
FOR STUDENTS. 
(a) INFORMATION DISSEMINATION ACTIVITIES.—Section 485(a) 
(20 U.S.C. 1092(a)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (G)— 
(i) by striking ‘‘program, and’’ and inserting ‘‘pro-
gram,’’; and 
(ii) by inserting ‘‘, and (iv) any plans by the institu-
tion for improving the academic program of the institu-
tion’’ after ‘‘instructional personnel’’; and 
(B) by striking subparagraph (M) and inserting the 
following: 
‘‘(M) the terms and conditions of the loans that stu-
dents receive under parts B, D, and E;’’; 
(C) in subparagraph (N), by striking ‘‘and’’ after the 
semicolon; 
(D) in subparagraph (O), by striking the period and 
inserting a semicolon; and 
(E) by adding at the end the following: 
‘‘(P) institutional policies and sanctions related to copy-
right infringement, including— 
‘‘(i) an annual disclosure that explicitly informs 
students that unauthorized distribution of copyrighted 
material, including unauthorized peer-to-peer file 
sharing, may subject the students to civil and criminal 
liabilities; 
‘‘(ii) a summary of the penalties for violation of 
Federal copyright laws; and 
‘‘(iii) a description of the institution’s policies with 
respect to unauthorized peer-to-peer file sharing, 
including disciplinary actions that are taken against 
students who engage in unauthorized distribution of 
copyrighted materials using the institution’s informa-
tion technology system;
H. R. 4137—217 
‘‘(Q) student body diversity at the institution, including 
information on the percentage of enrolled, full-time stu-
dents who— 
‘‘(i) are male; 
‘‘(ii) are female; 
‘‘(iii) receive a Federal Pell Grant; and 
‘‘(iv) are a self-identified member of a major racial 
or ethnic group; 
‘‘(R) the placement in employment of, and types of 
employment obtained by, graduates of the institution’s 
degree or certificate programs, gathered from such sources 
as alumni surveys, student satisfaction surveys, the 
National Survey of Student Engagement, the Community 
College Survey of Student Engagement, State data systems, 
or other relevant sources; 
‘‘(S) the types of graduate and professional education 
in which graduates of the institution’s four-year degree 
programs enrolled, gathered from such sources as alumni 
surveys, student satisfaction surveys, the National Survey 
of Student Engagement, State data systems, or other rel-
evant sources; 
‘‘(T) the fire safety report prepared by the institution 
pursuant to subsection (i); 
‘‘(U) the retention rate of certificate- or degree-seeking, 
first-time, full-time, undergraduate students entering such 
institution; and 
‘‘(V) institutional policies regarding vaccinations.’’; and 
(2) by striking paragraph (4) and inserting the following: 
‘‘(4) For purposes of this section, institutions may— 
‘‘(A) exclude from the information disclosed in accord-
ance with subparagraph (L) of paragraph (1) the completion 
or graduation rates of students who leave school to serve 
in the Armed Forces, on official church missions, or with 
a recognized foreign aid service of the Federal Government; 
or 
‘‘(B) in cases where the students described in subpara-
graph (A) represent 20 percent or more of the certificate- 
or degree-seeking, full-time, undergraduate students at the 
institution, recalculate the completion or graduation rates 
of such students by excluding from the calculation described 
in paragraph (3) the time period such students were not 
enrolled due to their service in the Armed Forces, on official 
church missions, or with a recognized foreign aid service 
of the Federal Government.’’; and 
(3) by adding at the end the following: 
‘‘(7)(A)(i) Subject to clause (ii), the information dissemi-
nated under paragraph (1)(L), or reported under subsection 
(e), shall be disaggregated by gender, by each major racial 
and ethnic subgroup, by recipients of a Federal Pell Grant, 
by recipients of a loan made under part B or D (other than 
a loan made under section 428H or a Federal Direct Unsub-
sidized Stafford Loan) who did not receive a Federal Pell Grant, 
and by recipients of neither a Federal Pell Grant nor a loan 
made under part B or D (other than a loan made under section 
428H or a Federal Direct Unsubsidized Stafford Loan), if the 
number of students in such subgroup or with such status is 
sufficient to yield statistically reliable information and
H. R. 4137—218 
reporting will not reveal personally identifiable information 
about an individual student. If such number is not sufficient 
for such purposes, then the institution shall note that the 
institution enrolled too few of such students to so disclose 
or report with confidence and confidentiality. 
‘‘(ii) The requirements of clause (i) shall not apply to two- 
year, degree-granting institutions of higher education until aca-
demic year 2011-2012. 
‘‘(B)(i) In order to assist two-year degree-granting institu-
tions of higher education in meeting the requirements of para-
graph (1)(L) and subsection (e), the Secretary, in consultation 
with the Commissioner for Education Statistics, shall, not later 
than 90 days after the date of enactment of the Higher Edu-
cation Opportunity Act, convene a group of representatives 
from diverse institutions of higher education, experts in the 
field of higher education policy, state higher education officials, 
students, and other stakeholders in the higher education 
community, to develop recommendations regarding the accurate 
calculation and reporting of the information required to be 
disseminated or reported under paragraph (1)(L) and subsection 
(e) by two-year, degree-granting institutions of higher edu-
cation. In developing such recommendations, the group of rep-
resentatives shall consider the mission and role of two-year 
degree-granting institutions of higher education, and may rec-
ommend additional or alternative measures of student success 
for such institutions in light of the mission and role of such 
institutions. 
‘‘(ii) The Secretary shall widely disseminate the rec-
ommendations required under this subparagraph to two-year, 
degree-granting institutions of higher education, the public, 
and the authorizing committees not later than 18 months after 
the first meeting of the group of representatives convened under 
clause (i). 
‘‘(iii) The Secretary shall use the recommendations from 
the group of representatives convened under clause (i) to pro-
vide technical assistance to two-year, degree-granting institu-
tions of higher education in meeting the requirements of para-
graph (1)(L) and subsection (e). 
‘‘(iv) The Secretary may modify the information required 
to be disseminated or reported under paragraph (1)(L) or sub-
section (e) by a two-year, degree-granting institution of higher— 
‘‘(I) based on the recommendations received under this 
subparagraph from the group of representatives convened 
under clause (i); 
‘‘(II) to include additional or alternative measures of 
student success if the goals of the provisions of paragraph 
(1)(L) and subsection (e) can be met through additional 
means or comparable alternatives; and 
‘‘(III) during the period beginning on the date of enact-
ment of the Higher Education Opportunity Act, and ending 
on June 30, 2011.’’. 
(b) EXIT COUNSELING.—Subsection (b)(1)(A) of section 485 (20 
U.S.C. 1092(b)(1)(A)) is amended to read as follows: 
‘‘(b) EXIT COUNSELING FOR BORROWERS.—(1)(A) Each eligible 
institution shall, through financial aid offices or otherwise, provide 
counseling to borrowers of loans that are made, insured, or guaran-
teed under part B (other than loans made pursuant to section
H. R. 4137—219 
428C or loans under section 428B made on behalf of a student) 
or made under part D (other than Federal Direct Consolidation 
Loans or Federal Direct PLUS Loans made on behalf of a student) 
or made under part E of this title prior to the completion of 
the course of study for which the borrower enrolled at the institution 
or at the time of departure from such institution. The counseling 
required by this subsection shall include— 
‘‘(i) information on the repayment plans available, including 
a description of the different features of each plan and sample 
information showing the average anticipated monthly pay-
ments, and the difference in interest paid and total payments, 
under each plan; 
‘‘(ii) debt management strategies that are designed to facili-
tate the repayment of such indebtedness; 
‘‘(iii) an explanation that the borrower has the options 
to prepay each loan, pay each loan on a shorter schedule, 
and change repayment plans; 
‘‘(iv) for any loan forgiveness or cancellation provision of 
this title, a general description of the terms and conditions 
under which the borrower may obtain full or partial forgiveness 
or cancellation of the principal and interest, and a copy of 
the information provided by the Secretary under section 485(d); 
‘‘(v) for any forbearance provision of this title, a general 
description of the terms and conditions under which the bor-
rower may defer repayment of principal or interest or be 
granted forbearance, and a copy of the information provided 
by the Secretary under section 485(d); 
‘‘(vi) the consequences of defaulting on a loan, including 
adverse credit reports, delinquent debt collection procedures 
under Federal law, and litigation; 
‘‘(vii) information on the effects of using a consolidation 
loan under section 428C or a Federal Direct Consolidation 
Loan to discharge the borrower’s loans under parts B, D, and 
E, including at a minimum— 
‘‘(I) the effects of consolidation on total interest to 
be paid, fees to be paid, and length of repayment; 
‘‘(II) the effects of consolidation on a borrower’s under-
lying loan benefits, including grace periods, loan forgive-
ness, cancellation, and deferment opportunities; 
‘‘(III) the option of the borrower to prepay the loan 
or to change repayment plans; and 
‘‘(IV) that borrower benefit programs may vary among 
different lenders; 
‘‘(viii) a general description of the types of tax benefits 
that may be available to borrowers; and 
‘‘(ix) a notice to borrowers about the availability of the 
National Student Loan Data System and how the system can 
be used by a borrower to obtain information on the status 
of the borrower’s loans; and’’. 
(c) DEPARTMENTAL PUBLICATION OF DESCRIPTIONS OF ASSIST-
ANCE PROGRAMS.—Section 485(d) (20 U.S.C. 1092(d)) is amended— 
(1) in paragraph (1)— 
(A) by inserting after ‘‘under this title.’’ the following: 
‘‘Such information shall also include information on the 
various payment options available for student loans, 
including income-sensitive and income-based repayment 
plans for loans made, insured, or guaranteed under part
H. R. 4137—220 
B and income-contingent and income-based repayment 
plans for loans made under part D.’’; and 
(B) by inserting after ‘‘tax-exempt organization.’’ the 
following: ‘‘The Secretary shall also provide information 
on loan forbearance, including the increase in debt that 
results from capitalization of interest.’’; and 
(2) by adding at the end the following: 
‘‘(4) The Secretary shall widely publicize the location of the 
information described in paragraph (1) among the public, eligible 
institutions, and eligible lenders, and promote the use of such 
information by prospective students, enrolled students, families of 
prospective and enrolled students, and borrowers.’’. 
(d) DISCLOSURE
OF
ATHLETICALLY
RELATED
GRADUATION 
RATES.—Section 485(e)(3) (20 U.S.C. 1092(e)(3)) is amended to read 
as follows: 
‘‘(3) For purposes of this subsection, institutions may— 
‘‘(A) exclude from the reporting requirements under 
paragraphs (1) and (2) the completion or graduation rates 
of students and student athletes who leave school to serve 
in the Armed Forces, on official church missions, or with 
a recognized foreign aid service of the Federal Government; 
or 
‘‘(B) in cases where the students described in subpara-
graph (A) represent 20 percent or more of the certificate- 
or degree-seeking, full-time, undergraduate students at the 
institution, calculate the completion or graduation rates 
of such students by excluding from the calculations 
described in paragraph (1) the time period such students 
were not enrolled due to their service in the Armed Forces, 
on official church missions, or with a recognized foreign 
aid service of the Federal Government.’’. 
(e) CRIMINAL OFFENSES REPORTED.—Section 485(f) (20 U.S.C. 
1092(f)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph (A), by 
inserting ‘‘, other than a foreign institution higher edu-
cation,’’ after ‘‘under this title’’; 
(B) in subparagraph (C), by striking clauses (i) and 
(ii) and inserting the following: 
‘‘(i) the law enforcement authority of campus secu-
rity personnel; 
‘‘(ii) the working relationship of campus security 
personnel with State and local law enforcement agen-
cies, including whether the institution has agreements 
with such agencies, such as written memoranda of 
understanding, for the investigation of alleged criminal 
offenses; and 
‘‘(iii) policies which encourage accurate and prompt 
reporting of all crimes to the campus police and the 
appropriate law enforcement agencies.’’; 
(C) in subparagraph (F)(ii)— 
(i) by striking ‘‘clause (i), and’’ and inserting 
‘‘clause (i), of larceny-theft, simple assault, intimida-
tion, and destruction, damage, or vandalism of prop-
erty, and of’’; and 
(ii) by inserting a comma after ‘‘any person’’; and
H. R. 4137—221 
(D) by adding at the end the following new subpara-
graph: 
‘‘(J) A statement of current campus policies regarding 
immediate emergency response and evacuation procedures, 
including the use of electronic and cellular communication 
(if appropriate), which policies shall include procedures 
to— 
‘‘(i) immediately notify the campus community 
upon the confirmation of a significant emergency or 
dangerous situation involving an immediate threat to 
the health or safety of students or staff occurring on 
the campus, as defined in paragraph (6), unless issuing 
a notification will compromise efforts to contain the 
emergency; 
‘‘(ii) publicize emergency response and evacuation 
procedures on an annual basis in a manner designed 
to reach students and staff; and 
‘‘(iii) test emergency response and evacuation 
procedures on an annual basis.’’; 
(2) by redesignating paragraph (15) as paragraph (18); 
and 
(3) by inserting after paragraph (14) the following: 
‘‘(15) The Secretary shall annually report to the authorizing 
committees regarding compliance with this subsection by 
institutions of higher education, including an up-to-date report 
on the Secretary’s monitoring of such compliance. 
‘‘(16) The Secretary may seek the advice and counsel of 
the Attorney General concerning the development, and dissemi-
nation to institutions of higher education, of best practices 
information about campus safety and emergencies. 
‘‘(17) Nothing in this subsection shall be construed to 
permit an institution, or an officer, employee, or agent of an 
institution, participating in any program under this title to 
retaliate, intimidate, threaten, coerce, or otherwise discriminate 
against any individual with respect to the implementation of 
any provision of this subsection.’’. 
(f) REPORT.—Section 485(g)(4) (20 U.S.C. 1092(g)(4)) is 
amended— 
(1) by striking subparagraph (B); 
(2) by redesignating subparagraphs (C) and (D) as subpara-
graphs (B) and (C), respectively; 
(3) in subparagraph (B) (as redesignated by paragraph 
(2)), by striking ‘‘and the report to Congress described in 
subparagraph (B)’’; and 
(4) in subparagraph (C) (as redesignated by paragraph 
(2)), by striking ‘‘the information reported under subparagraph 
(B) and’’. 
(g) ADDITIONAL REQUIREMENTS.—Section 485 (20 U.S.C. 1092) 
is further amended by adding at the end the following new sub-
sections: 
‘‘(h) TRANSFER OF CREDIT POLICIES.— 
‘‘(1) DISCLOSURE.—Each institution of higher education 
participating in any program under this title shall publicly 
disclose, in a readable and comprehensible manner, the transfer 
of credit policies established by the institution which shall 
include a statement of the institution’s current transfer of 
credit policies that includes, at a minimum—
H. R. 4137—222 
‘‘(A) any established criteria the institution uses 
regarding the transfer of credit earned at another institu-
tion of higher education; and 
‘‘(B) a list of institutions of higher education with which 
the institution has established an articulation agreement. 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed to— 
‘‘(A) authorize the Secretary or the National Advisory 
Committee on Institutional Quality and Integrity to require 
particular policies, procedures, or practices by institutions 
of higher education with respect to transfer of credit; 
‘‘(B) authorize an officer or employee of the Department 
to exercise any direction, supervision, or control over the 
curriculum, program of instruction, administration, or per-
sonnel of any institution of higher education, or over any 
accrediting agency or association; 
‘‘(C) limit the application of the General Education 
Provisions Act; or 
‘‘(D) create any legally enforceable right on the part 
of a student to require an institution of higher education 
to accept a transfer of credit from another institution. 
‘‘(i) DISCLOSURE OF FIRE SAFETY STANDARDS AND MEASURES.— 
‘‘(1) ANNUAL FIRE SAFETY REPORTS ON STUDENT HOUSING 
REQUIRED.—Each eligible institution participating in any pro-
gram under this title that maintains on-campus student 
housing facilities shall, on an annual basis, publish a fire 
safety report, which shall contain information with respect 
to the campus fire safety practices and standards of that institu-
tion, including— 
‘‘(A) statistics concerning the following in each on- 
campus student housing facility during the most recent 
calendar years for which data are available: 
‘‘(i) the number of fires and the cause of each 
fire; 
‘‘(ii) the number of injuries related to a fire that 
result in treatment at a medical facility; 
‘‘(iii) the number of deaths related to a fire; and 
‘‘(iv) the value of property damage caused by a 
fire; 
‘‘(B) a description of each on-campus student housing 
facility fire safety system, including the fire sprinkler 
system; 
‘‘(C) the number of regular mandatory supervised fire 
drills; 
‘‘(D) policies or rules on portable electrical appliances, 
smoking, and open flames (such as candles), procedures 
for evacuation, and policies regarding fire safety education 
and training programs provided to students, faculty, and 
staff; and 
‘‘(E) plans for future improvements in fire safety, if 
determined necessary by such institution. 
‘‘(2) REPORT TO THE SECRETARY.—Each eligible institution 
participating in any program under this title shall, on an 
annual basis, submit to the Secretary a copy of the statistics 
required to be made available under paragraph (1)(A).
H. R. 4137—223 
‘‘(3) CURRENT INFORMATION TO CAMPUS COMMUNITY.—Each 
eligible institution participating in any program under this 
title shall— 
‘‘(A) make, keep, and maintain a log, recording all 
fires in on-campus student housing facilities, including the 
nature, date, time, and general location of each fire; and 
‘‘(B) make annual reports to the campus community 
on such fires. 
‘‘(4) RESPONSIBILITIES OF THE SECRETARY.—The Secretary 
shall— 
‘‘(A) make the statistics submitted under paragraph 
(1)(A) to the Secretary available to the public; and 
‘‘(B) in coordination with nationally recognized fire 
organizations and representatives of institutions of higher 
education, representatives of associations of institutions 
of higher education, and other organizations that represent 
and house a significant number of students— 
‘‘(i) identify exemplary fire safety policies, proce-
dures, programs, and practices, including the installa-
tion, to the technical standards of the National Fire 
Protection Association, of fire detection, prevention, 
and protection technologies in student housing, dor-
mitories, and other buildings; 
‘‘(ii) disseminate the exemplary policies, proce-
dures, programs and practices described in clause (i) 
to the Administrator of the United States Fire Adminis-
tration; 
‘‘(iii) make available to the public information con-
cerning those policies, procedures, programs, and prac-
tices that have proven effective in the reduction of 
fires; and 
‘‘(iv) develop a protocol for institutions to review 
the status of their fire safety systems. 
‘‘(5) RULES OF CONSTRUCTION.—Nothing in this subsection 
shall be construed to— 
‘‘(A) authorize the Secretary to require particular poli-
cies, procedures, programs, or practices by institutions of 
higher education with respect to fire safety, other than 
with respect to the collection, reporting, and dissemination 
of information required by this subsection; 
‘‘(B) affect section 444 of the General Education Provi-
sions Act (the Family Educational Rights and Privacy Act 
of 1974) or the regulations issued under section 264 of 
the Health Insurance Portability and Accountability Act 
of 1996 (42 U.S.C. 1320d–2 note); 
‘‘(C) create a cause of action against any institution 
of higher education or any employee of such an institution 
for any civil liability; or 
‘‘(D) establish any standard of care. 
‘‘(6) COMPLIANCE REPORT.—The Secretary shall annually 
report to the authorizing committees regarding compliance with 
this subsection by institutions of higher education, including 
an up-to-date report on the Secretary’s monitoring of such 
compliance. 
‘‘(7) EVIDENCE.—Notwithstanding any other provision of 
law, evidence regarding compliance or noncompliance with this 
subsection shall not be admissible as evidence in any proceeding
H. R. 4137—224 
of any court, agency, board, or other entity, except with respect 
to an action to enforce this subsection. 
‘‘(j) MISSING PERSON PROCEDURES.— 
‘‘(1) OPTION AND PROCEDURES.—Each institution of higher 
education that provides on-campus housing and participates 
in any program under this title shall— 
‘‘(A) establish a missing student notification policy for 
students who reside in on-campus housing that— 
‘‘(i) informs each such student that such student 
has the option to identify an individual to be contacted 
by the institution not later than 24 hours after the 
time that the student is determined missing in accord-
ance with official notification procedures established 
by the institution under subparagraph (B); 
‘‘(ii) provides each such student a means to register 
confidential contact information in the event that the 
student is determined to be missing for a period of 
more than 24 hours; 
‘‘(iii) advises each such student who is under 18 
years of age, and not an emancipated individual, that 
the institution is required to notify a custodial parent 
or guardian not later 24 hours after the time that 
the student is determined to be missing in accordance 
with such procedures; 
‘‘(iv) informs each such residing student that the 
institution will notify the appropriate law enforcement 
agency not later than 24 hours after the time that 
the student is determined missing in accordance with 
such procedures; and 
‘‘(v) requires, if the campus security or law enforce-
ment personnel has been notified and makes a deter-
mination that a student who is the subject of a missing 
person report has been missing for more than 24 hours 
and has not returned to the campus, the institution 
to initiate the emergency contact procedures in accord-
ance with the student’s designation; and 
‘‘(B) establish official notification procedures for a 
missing student who resides in on-campus housing that— 
‘‘(i) includes procedures for official notification of 
appropriate individuals at the institution that such 
student has been missing for more than 24 hours; 
‘‘(ii) requires any official missing person report 
relating to such student be referred immediately to 
the institution’s police or campus security department; 
and 
‘‘(iii) if, on investigation of the official report, such 
department determines that the missing student has 
been missing for more than 24 hours, requires— 
‘‘(I) such department to contact the individual 
identified by such student under subparagraph 
(A)(i); 
‘‘(II) if such student is under 18 years of age, 
and not an emancipated individual, the institution 
to immediately contact the custodial parent or 
legal guardian of such student; and
H. R. 4137—225 
‘‘(III) if subclauses (I) or (II) do not apply 
to a student determined to be a missing person, 
inform the appropriate law enforcement agency. 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed— 
‘‘(A) to provide a private right of action to any person 
to enforce any provision of this subsection; or 
‘‘(B) to create a cause of action against any institution 
of higher education or any employee of the institution 
for any civil liability. 
‘‘(k) NOTICE TO STUDENTS CONCERNING PENALTIES FOR DRUG 
VIOLATIONS.— 
‘‘(1) NOTICE UPON ENROLLMENT.—Each institution of higher 
education shall provide to each student, upon enrollment, a 
separate, clear, and conspicuous written notice that advises 
the student of the penalties under section 484(r). 
‘‘(2) NOTICE
AFTER
LOSS
OF
ELIGIBILITY.—An institution 
of higher education shall provide in a timely manner to each 
student who has lost eligibility for any grant, loan, or work- 
study assistance under this title as a result of the penalties 
listed under 484(r)(1) a separate, clear, and conspicuous written 
notice that notifies the student of the loss of eligibility and 
advises the student of the ways in which the student can 
regain eligibility under section 484(r)(2). 
‘‘(l) ENTRANCE COUNSELING FOR BORROWERS.— 
‘‘(1) DISCLOSURE REQUIRED PRIOR TO DISBURSEMENT.— 
‘‘(A) IN GENERAL.—Each eligible institution shall, at 
or prior to the time of a disbursement to a first-time 
borrower of a loan made, insured, or guaranteed under 
part B (other than a loan made pursuant to section 428C 
or a loan made on behalf of a student pursuant to section 
428B) or made under part D (other than a Federal Direct 
Consolidation Loan or a Federal Direct PLUS loan made 
on behalf of a student), ensure that the borrower receives 
comprehensive information on the terms and conditions 
of the loan and of the responsibilities the borrower has 
with respect to such loan in accordance with subparagraph 
(B). Such information— 
‘‘(i) shall be provided in a simple and understand-
able manner; and 
‘‘(ii) may be provided— 
‘‘(I) during an entrance counseling session 
conduction in person; 
‘‘(II) on a separate written form provided to 
the borrower that the borrower signs and returns 
to the institution; or 
‘‘(III) online, with the borrower acknowledging 
receipt of the information. 
‘‘(B) USE OF INTERACTIVE PROGRAMS.—The Secretary 
shall encourage institutions to carry out the requirements 
of subparagraph (A) through the use of interactive pro-
grams that test the borrower’s understanding of the terms 
and conditions of the borrower’s loans under part B or 
D, using simple and understandable language and clear 
formatting.
H. R. 4137—226 
‘‘(2) INFORMATION TO BE PROVIDED.—The information to 
be provided to the borrower under paragraph (1)(A) shall 
include the following: 
‘‘(A) To the extent practicable, the effect of accepting 
the loan to be disbursed on the eligibility of the borrower 
for other forms of student financial assistance. 
‘‘(B) An explanation of the use of the master promissory 
note. 
‘‘(C) Information on how interest accrues and is capital-
ized during periods when the interest is not paid by either 
the borrower or the Secretary. 
‘‘(D) In the case of a loan made under section 428B 
or 428H, a Federal Direct PLUS Loan, or a Federal Direct 
Unsubsidized Stafford Loan, the option of the borrower 
to pay the interest while the borrower is in school. 
‘‘(E) The definition of half-time enrollment at the 
institution, during regular terms and summer school, if 
applicable, and the consequences of not maintaining half- 
time enrollment. 
‘‘(F) An explanation of the importance of contacting 
the appropriate offices at the institution of higher education 
if the borrower withdraws prior to completing the bor-
rower’s program of study so that the institution can provide 
exit counseling, including information regarding the bor-
rower’s repayment options and loan consolidation. 
‘‘(G) Sample monthly repayment amounts based on— 
‘‘(i) a range of levels of indebtedness of— 
‘‘(I) borrowers of loans under section 428 or 
428H; and 
‘‘(II) as appropriate, graduate borrowers of 
loans under section 428, 428B, or 428H; or 
‘‘(ii) the average cumulative indebtedness of other 
borrowers in the same program as the borrower at 
the same institution. 
‘‘(H) The obligation of the borrower to repay the full 
amount of the loan, regardless of whether the borrower 
completes or does not complete the program in which the 
borrower is enrolled within the regular time for program 
completion. 
‘‘(I) The likely consequences of default on the loan, 
including adverse credit reports, delinquent debt collection 
procedures under Federal law, and litigation. 
‘‘(J) Information on the National Student Loan Data 
System and how the borrower can access the borrower’s 
records. 
‘‘(K) The name of and contact information for the indi-
vidual the borrower may contact if the borrower has any 
questions about the borrower’s rights and responsibilities 
or the terms and conditions of the loan.’’. 
SEC. 489. NATIONAL STUDENT LOAN DATA SYSTEM. 
Section 485B (20 U.S.C. 1092b) is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (6) through (10) as 
paragraphs (7) through (11), respectively;
H. R. 4137—227 
(B) in paragraph (5) (as added by Public Law 101– 
610), by striking ‘‘effectiveness.’’ and inserting ‘‘effective-
ness;’’; and 
(C) by redesignating paragraph (5) (as added by Public 
Law 101–234) as paragraph (6); 
(2) by redesignating subsections (d) through (g) as sub-
sections (e) through (h), respectively; and 
(3) by inserting after subsection (c) the following: 
‘‘(d) PRINCIPLES
FOR ADMINISTERING
THE DATA SYSTEM.—In 
managing the National Student Loan Data System, the Secretary 
shall take actions necessary to maintain confidence in the data 
system, including, at a minimum— 
‘‘(1) ensuring that the primary purpose of access to the 
data system by guaranty agencies, eligible lenders, and eligible 
institutions of higher education is for legitimate program oper-
ations, such as the need to verify the eligibility of a student, 
potential student, or parent for loans under part B, D, or 
E; 
‘‘(2) prohibiting nongovernmental researchers and policy 
analysts from accessing personally identifiable information; 
‘‘(3) creating a disclosure form for students and potential 
students that is distributed when such students complete the 
common financial reporting form under section 483, and as 
a part of the exit counseling process under section 485(b), 
that— 
‘‘(A) informs the students that any title IV grant or 
loan the students receive will be included in the National 
Student Loan Data System, and instructs the students 
on how to access that information; 
‘‘(B) describes the categories of individuals or entities 
that may access the data relating to such grant or loan 
through the data system, and for what purposes access 
is allowed; 
‘‘(C) defines and explains the categories of information 
included in the data system; 
‘‘(D) provides a summary of the provisions of section 
444 of the General Education Provisions Act (the Family 
Educational Rights and Privacy Act of 1974) and other 
applicable Federal privacy statutes, and a statement of 
the students’ rights and responsibilities with respect to 
such statutes; 
‘‘(E) explains the measures taken by the Department 
to safeguard the students’ data; and 
‘‘(F) includes other information as determined appro-
priate by the Secretary; 
‘‘(4) requiring guaranty agencies, eligible lenders, and 
eligible institutions of higher education that enter into an agree-
ment with a potential student, student, or parent of such stu-
dent regarding a loan under part B, D, or E, to inform the 
student or parent that such loan shall be— 
‘‘(A) submitted to the data system; and 
‘‘(B) accessible to guaranty agencies, eligible lenders, 
and eligible institutions of higher education determined 
by the Secretary to be authorized users of the data system; 
‘‘(5) regularly reviewing the data system to— 
‘‘(A) delete inactive users from the data system;
H. R. 4137—228 
‘‘(B) ensure that the data in the data system are not 
being used for marketing purposes; and 
‘‘(C) monitor the use of the data system by guaranty 
agencies and eligible lenders to determine whether an 
agency or lender is accessing the records of students in 
which the agency or lender has no existing financial 
interest; and 
‘‘(6) developing standardized protocols for limiting access 
to the data system that include— 
‘‘(A) collecting data on the usage of the data system 
to monitor whether access has been or is being used con-
trary to the purposes of the data system; 
‘‘(B) defining the steps necessary for determining 
whether, and how, to deny or restrict access to the data 
system; and 
‘‘(C) determining the steps necessary to reopen access 
to the data system following a denial or restriction of 
access.’’; and 
(4) by striking subsection (e) (as redesignated by paragraph 
(1)) and inserting the following: 
‘‘(e) REPORTS TO CONGRESS.— 
‘‘(1) ANNUAL REPORT.—Not later than September 30 of each 
fiscal year, the Secretary shall prepare and submit to the 
authorizing committees a report describing— 
‘‘(A) the effectiveness of existing privacy safeguards 
in protecting student and parent information in the data 
system; 
‘‘(B) the success of any new authorization protocols 
in more effectively preventing abuse of the data system; 
‘‘(C) the ability of the Secretary to monitor how the 
system is being used, relative to the intended purposes 
of the data system; and 
‘‘(D) any protocols developed under subsection (d)(6) 
during the preceding fiscal year. 
‘‘(2) STUDY.— 
‘‘(A) IN GENERAL.—The Secretary shall conduct a study 
regarding— 
‘‘(i) available mechanisms for providing students 
and parents with the ability to opt in or opt out of 
allowing eligible lenders to access their records in the 
National Student Loan Data System; and 
‘‘(ii) appropriate protocols for limiting access to 
the data system, based on the risk assessment required 
under subchapter III of chapter 35 of title 44, United 
States Code. 
‘‘(B) SUBMISSION OF STUDY.—Not later than three years 
after the date of enactment of the Higher Education Oppor-
tunity Act, the Secretary shall prepare and submit a report 
on the findings of the study under subparagraph (A) to 
the authorizing committees.’’. 
SEC. 490. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY. 
Part G of title IV (20 U.S.C. 1088 et seq.) is amended by 
inserting after section 485D (20 U.S.C. 1092c) the following: 
‘‘SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY. 
‘‘(a) IN GENERAL.—The Secretary shall implement, in coopera-
tion with States, institutions of higher education, secondary schools,
H. R. 4137—229 
early intervention and outreach programs under this title, other 
agencies and organizations involved in student financial assistance 
and college access, public libraries, community centers, employers, 
and businesses, a comprehensive system of early financial aid 
information in order to provide students and families with early 
information about financial aid and early estimates of such students’ 
eligibility for financial aid from multiple sources. Such system shall 
include the activities described in subsection (b). 
‘‘(b) COMMUNICATION OF AVAILABILITY OF AID AND AID ELIGI-
BILITY.— 
‘‘(1) STUDENTS
WHO
RECEIVE
BENEFITS.—The Secretary 
shall— 
‘‘(A) make special efforts to notify students who receive 
or are eligible to receive benefits under a Federal means- 
tested benefit program (including the supplemental nutri-
tion assistance program under the Food and Nutrition Act 
of 2008 (7 U.S.C. 2011 et seq.)), or another such benefit 
program as determined by the Secretary, of such students’ 
potential eligibility for a maximum Federal Pell Grant 
under subpart 1 of part A; and 
‘‘(B) disseminate such informational materials, that are 
part of the system described in subsection (a), as the Sec-
retary determines necessary. 
‘‘(2) SECONDARY
SCHOOL
STUDENTS.—The Secretary, in 
cooperation with States, institutions of higher education, other 
organizations involved in college access and student financial 
aid, secondary schools, and programs under this title that serve 
secondary school students, shall make special efforts to notify 
students in secondary school and their families, as early as 
possible but not later than such students’ junior year of sec-
ondary school, of the availability of financial aid under this 
title and shall provide nonbinding estimates of the amounts 
of grant and loan aid that an individual may be eligible for 
under this title upon completion of an application form under 
section 483(a). The Secretary shall ensure that such information 
is as accurate as possible and that such information is provided 
in an age-appropriate format using dissemination mechanisms 
suitable for students in secondary school. 
‘‘(3) ADULT LEARNERS.—The Secretary, in cooperation with 
States, institutions of higher education, other organizations 
involved in college access and student financial aid, employers, 
workforce investment boards, and public libraries, shall make 
special efforts to provide individuals who would qualify as 
independent students, as defined in section 480(d), with 
information regarding the availability of financial aid under 
this title and with nonbinding estimates of the amounts of 
grant and loan aid that an individual may be eligible for 
under this title upon completion of an application form under 
section 483(a). The Secretary shall ensure that such informa-
tion— 
‘‘(A) is as accurate as possible; 
‘‘(B) includes specific information regarding the avail-
ability of financial aid for students qualified as independent 
students, as defined in section 480(d); and 
‘‘(C) uses dissemination mechanisms suitable for adult 
learners.
H. R. 4137—230 
‘‘(4) PUBLIC
AWARENESS
CAMPAIGN.—Not later than two 
years after the date of enactment of the Higher Education 
Opportunity Act, the Secretary, in coordination with States, 
institutions of higher education, early intervention and outreach 
programs under this title, other agencies and organizations 
involved in college access and student financial aid, secondary 
schools, organizations that provide services to individuals that 
are or were homeless, to individuals in foster care, or to other 
disconnected individuals, local educational agencies, public 
libraries, community centers, businesses, employers, employ-
ment services, workforce investment boards, and movie thea-
ters, shall implement a public awareness campaign in order 
to increase national awareness regarding the availability of 
financial aid under this title. The public awareness campaign 
shall disseminate accurate information regarding the avail-
ability of financial aid under this title and shall be imple-
mented, to the extent practicable, using a variety of media, 
including print, television, radio, and the Internet. The Sec-
retary shall design and implement the public awareness cam-
paign based upon relevant independent research and the 
information and dissemination strategies found most effective 
in implementing paragraphs (1) through (3).’’. 
SEC. 491. DISTANCE EDUCATION DEMONSTRATION PROGRAMS. 
Section 486(f)(3) (20 U.S.C. 1093(f)(3)) is amended— 
(1) in subparagraph (B), by redesignating clauses (i) and 
(ii) as subparagraphs (A) and (B), respectively, and adjusting 
the margins accordingly; and 
(2) by striking ‘‘REPORTS.—’’ and all that follows through 
‘‘House of Representatives on an annual basis’’ and inserting 
‘‘ANNUAL REPORTS.—The Secretary shall provide reports to the 
authorizing committees on an annual basis’’. 
SEC. 492. ARTICULATION AGREEMENTS. 
Part G of title IV is further amended by inserting after section 
486 (20 U.S.C. 1093) the following new section: 
‘‘SEC. 486A. ARTICULATION AGREEMENTS. 
‘‘(a) DEFINITION.—In this section, the term ‘articulation agree-
ment’ means an agreement between or among institutions of higher 
education that specifies the acceptability of courses in transfer 
toward meeting specific degree or program requirements. 
‘‘(b) PROGRAM TO ENCOURAGE ARTICULATION AGREEMENTS.— 
‘‘(1) PROGRAM ESTABLISHED.—The Secretary shall carry out 
a program for States, in cooperation with public institutions 
of higher education, to develop, enhance, and implement com-
prehensive articulation agreements between or among such 
institutions in a State, and (to the extent practicable) across 
State lines, by 2010. Such articulation agreements shall be 
made widely and publicly available on the websites of States 
and such institutions. In developing, enhancing, and imple-
menting articulation agreements, States and public institutions 
of higher education may employ strategies, where applicable, 
including— 
‘‘(A) common course numbering; 
‘‘(B) a general education core curriculum; 
‘‘(C) management systems regarding course equiva-
lency, transfer of credit, and articulation; and
H. R. 4137—231 
‘‘(D) other strategies identified by the Secretary. 
‘‘(2) TECHNICAL ASSISTANCE PROVIDED.—The Secretary shall 
provide technical assistance to States and public institutions 
of higher education for the purposes of developing and imple-
menting articulation agreements in accordance with this sub-
section. 
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed to authorize the Secretary to require par-
ticular policies, procedures, or practices by institutions of higher 
education with respect to articulation agreements.’’. 
SEC. 493. PROGRAM PARTICIPATION AGREEMENTS. 
(a) PROGRAM PARTICIPATION AGREEMENT REQUIREMENTS.— 
(1) VOTER REGISTRATION; 90-10 RULE; CODE OF CONDUCT; 
DISCIPLINARY PROCEEDINGS; PREFERRED LENDER LISTS; PRIVATE 
EDUCATION LOAN CERTIFICATION; COPYRIGHTED MATERIAL.— 
(A) AMENDMENT.—Section 487(a) (20 U.S.C. 1094(a)) 
is amended— 
(i) in paragraph (23)— 
(I) by moving subparagraph (C) two ems to 
the left; and 
(II) by adding at the end the following: 
‘‘(D) The institution shall be considered in compliance 
with the requirements of subparagraph (A) for each student 
to whom the institution electronically transmits a message 
containing a voter registration form acceptable for use in 
the State in which the institution is located, or an Internet 
address where such a form can be downloaded, if such 
information is in an electronic message devoted exclusively 
to voter registration.’’; and 
(ii) by adding at the end the following: 
‘‘(24) In the case of a proprietary institution of higher 
education (as defined in section 102(b)), such institution will 
derive not less than ten percent of such institution’s revenues 
from sources other than funds provided under this title, as 
calculated in accordance with subsection (d)(1), or will be sub-
ject to the sanctions described in subsection (d)(2). 
‘‘(25) In the case of an institution that participates in 
a loan program under this title, the institution will— 
‘‘(A) develop a code of conduct with respect to such 
loans with which the institution’s officers, employees, and 
agents shall comply, that— 
‘‘(i) prohibits a conflict of interest with the respon-
sibilities of an officer, employee, or agent of an institu-
tion with respect to such loans; and 
‘‘(ii) at a minimum, includes the provisions 
described in subsection (e); 
‘‘(B) publish such code of conduct prominently on the 
institution’s website; and 
‘‘(C) administer and enforce such code by, at a min-
imum, requiring that all of the institution’s officers, 
employees, and agents with responsibilities with respect 
to such loans be annually informed of the provisions of 
the code of conduct. 
‘‘(26) The institution will, upon written request, disclose 
to the alleged victim of any crime of violence (as that term 
is defined in section 16 of title 18, United States Code), or
H. R. 4137—232 
a nonforcible sex offense, the report on the results of any 
disciplinary proceeding conducted by such institution against 
a student who is the alleged perpetrator of such crime or 
offense with respect to such crime or offense. If the alleged 
victim of such crime or offense is deceased as a result of 
such crime or offense, the next of kin of such victim shall 
be treated as the alleged victim for purposes of this paragraph. 
‘‘(27) In the case of an institution that has entered into 
a preferred lender arrangement, the institution will at least 
annually compile, maintain, and make available for students 
attending the institution, and the families of such students, 
a list, in print or other medium, of the specific lenders for 
loans made, insured, or guaranteed under this title or private 
education loans that the institution recommends, promotes, 
or endorses in accordance with such preferred lender arrange-
ment. In making such list, the institution shall comply with 
the requirements of subsection (h). 
‘‘(28)(A) The institution will, upon the request of an 
applicant for a private education loan, provide to the applicant 
the form required under section 128(e)(3) of the Truth in 
Lending Act (15 U.S.C. 1638(e)(3)), and the information 
required to complete such form, to the extent the institution 
possesses such information. 
‘‘(B) For purposes of this paragraph, the term ‘private edu-
cation loan’ has the meaning given such term in section 140 
of the Truth in Lending Act. 
‘‘(29) The institution certifies that the institution— 
‘‘(A) has developed plans to effectively combat the 
unauthorized 
distribution 
of 
copyrighted 
material, 
including through the use of a variety of technology-based 
deterrents; and 
‘‘(B) will, to the extent practicable, offer alternatives 
to illegal downloading or peer-to-peer distribution of 
intellectual property, as determined by the institution in 
consultation with the chief technology officer or other des-
ignated officer of the institution.’’. 
(B) EFFECTIVE
DATE.—The amendment made by 
subparagraph (A) with respect to section 487(a)(26) of the 
Higher Education Act of 1965 (as added by subparagraph 
(A)) shall apply with respect to any disciplinary proceeding 
conducted by an institution on or after the day that is 
one year after the date of enactment of this Act. 
(b) AUDITS; FINANCIAL
RESPONSIBILITY; ENFORCEMENT
OF 
STANDARDS.—Section 487(c)(1)(A)(i) (20 U.S.C. 1094(c)(1)(A)(i)) is 
amended by inserting before the semicolon at the end the following: 
‘‘, except that the Secretary may modify the requirements of this 
clause with respect to institutions of higher education that are 
foreign institutions, and may waive such requirements with respect 
to a foreign institution whose students receives less than $500,000 
in loans under this title during the award year preceding the 
audit period’’. 
(c) IMPLEMENTATION OF NON-TITLE IV REVENUE REQUIREMENT; 
CODE
OF CONDUCT; INSTITUTIONAL REQUIREMENTS
FOR TEACH- 
OUTS; INSPECTOR GENERAL REPORT ON GIFT BAN VIOLATIONS; PRE-
FERRED LENDER LIST REQUIREMENTS.—Section 487 (20 U.S.C. 1094) 
is further amended—
H. R. 4137—233 
(1) by redesignating subsections (d) and (e) as subsections 
(i) and (j), respectively; and 
(2) by inserting after subsection (c) the following: 
‘‘(d) IMPLEMENTATION
OF NON-TITLE IV REVENUE REQUIRE-
MENT.— 
‘‘(1) CALCULATION.—In making calculations under sub-
section (a)(24), a proprietary institution of higher education 
shall— 
‘‘(A) use the cash basis of accounting, except in the 
case of loans described in subparagraph (D)(i) that are 
made by the proprietary institution of higher education; 
‘‘(B) consider as revenue only those funds generated 
by the institution from— 
‘‘(i) tuition, fees, and other institutional charges 
for students enrolled in programs eligible for assistance 
under this title; 
‘‘(ii) activities conducted by the institution that 
are necessary for the education and training of the 
institution’s students, if such activities are— 
‘‘(I) conducted on campus or at a facility under 
the control of the institution; 
‘‘(II) performed under the supervision of a 
member of the institution’s faculty; and 
‘‘(III) required to be performed by all students 
in a specific educational program at the institution; 
and 
‘‘(iii) funds paid by a student, or on behalf of a 
student by a party other than the institution, for an 
education or training program that is not eligible for 
funds under this title, if the program— 
‘‘(I) is approved or licensed by the appropriate 
State agency; 
‘‘(II) is accredited by an accrediting agency 
recognized by the Secretary; or 
‘‘(III) provides an industry-recognized creden-
tial or certification; 
‘‘(C) presume that any funds for a program under 
this title that are disbursed or delivered to or on behalf 
of a student will be used to pay the student’s tuition, 
fees, or other institutional charges, regardless of whether 
the institution credits those funds to the student’s account 
or pays those funds directly to the student, except to the 
extent that the student’s tuition, fees, or other institutional 
charges are satisfied by— 
‘‘(i) grant funds provided by non-Federal public 
agencies or private sources independent of the institu-
tion; 
‘‘(ii) funds provided under a contractual arrange-
ment with a Federal, State, or local government agency 
for the purpose of providing job training to low-income 
individuals who are in need of that training; 
‘‘(iii) funds used by a student from savings plans 
for educational expenses established by or on behalf 
of the student and which qualify for special tax treat-
ment under the Internal Revenue Code of 1986; or 
‘‘(iv) 
institutional 
scholarships 
described 
in 
subparagraph (D)(iii);
H. R. 4137—234 
‘‘(D) include institutional aid as revenue to the school 
only as follows: 
‘‘(i) in the case of loans made by a proprietary 
institution of higher education on or after July 1, 2008 
and prior to July 1, 2012, the net present value of 
such loans made by the institution during the 
applicable institutional fiscal year accounted for on 
an accrual basis and estimated in accordance with 
generally accepted accounting principles and related 
standards and guidance, if the loans— 
‘‘(I) are bona fide as evidenced by enforceable 
promissory notes; 
‘‘(II) are issued at intervals related to the 
institution’s enrollment periods; and 
‘‘(III) are subject to regular loan repayments 
and collections; 
‘‘(ii) in the case of loans made by a proprietary 
institution of higher education on or after July 1, 2012, 
only the amount of loan repayments received during 
the applicable institutional fiscal year, excluding repay-
ments on loans made and accounted for as specified 
in clause (i); and 
‘‘(iii) in the case of scholarships provided by a 
proprietary institution of higher education, only those 
scholarships provided by the institution in the form 
of monetary aid or tuition discounts based upon the 
academic achievements or financial need of students, 
disbursed during each fiscal year from an established 
restricted account, and only to the extent that funds 
in that account represent designated funds from an 
outside source or from income earned on those funds; 
‘‘(E) in the case of each student who receives a loan 
on or after July 1, 2008, and prior to July 1, 2011, that 
is authorized under section 428H or that is a Federal 
Direct Unsubsidized Stafford Loan, treat as revenue 
received by the institution from sources other than funds 
received under this title, the amount by which the disburse-
ment of such loan received by the institution exceeds the 
limit on such loan in effect on the day before the date 
of enactment of the Ensuring Continued Access to Student 
Loans Act of 2008; and 
‘‘(F) exclude from revenues— 
‘‘(i) the amount of funds the institution received 
under part C, unless the institution used those funds 
to pay a student’s institutional charges; 
‘‘(ii) the amount of funds the institution received 
under subpart 4 of part A; 
‘‘(iii) the amount of funds provided by the institu-
tion as matching funds for a program under this title; 
‘‘(iv) the amount of funds provided by the institu-
tion for a program under this title that are required 
to be refunded or returned; and 
‘‘(v) the amount charged for books, supplies, and 
equipment, unless the institution includes that amount 
as tuition, fees, or other institutional charges. 
‘‘(2) SANCTIONS.—
H. R. 4137—235 
‘‘(A) INELIGIBILITY.—A proprietary institution of higher 
education that fails to meet a requirement of subsection 
(a)(24) for two consecutive institutional fiscal years shall 
be ineligible to participate in the programs authorized by 
this title for a period of not less than two institutional 
fiscal years. To regain eligibility to participate in the pro-
grams authorized by this title, a proprietary institution 
of higher education shall demonstrate compliance with all 
eligibility and certification requirements under section 498 
for a minimum of two institutional fiscal years after the 
institutional fiscal year in which the institution became 
ineligible. 
‘‘(B) ADDITIONAL ENFORCEMENT.—In addition to such 
other means of enforcing the requirements of this title 
as may be available to the Secretary, if a proprietary 
institution of higher education fails to meet a requirement 
of subsection (a)(24) for any institutional fiscal year, then 
the institution’s eligibility to participate in the programs 
authorized by this title becomes provisional for the two 
institutional fiscal years after the institutional fiscal year 
in which the institution failed to meet the requirement 
of subsection (a)(24), except that such provisional eligibility 
shall terminate— 
‘‘(i) on the expiration date of the institution’s pro-
gram participation agreement under this subsection 
that is in effect on the date the Secretary determines 
that the institution failed to meet the requirement 
of subsection (a)(24); or 
‘‘(ii) in the case that the Secretary determines that 
the institution failed to meet a requirement of sub-
section (a)(24) for two consecutive institutional fiscal 
years, on the date the institution is determined ineli-
gible in accordance with subparagraph (A). 
‘‘(3) PUBLICATION ON COLLEGE NAVIGATOR WEBSITE.—The 
Secretary shall publicly disclose on the College Navigator 
website— 
‘‘(A) the identity of any proprietary institution of higher 
education that fails to meet a requirement of subsection 
(a)(24); and 
‘‘(B) the extent to which the institution failed to meet 
such requirement. 
‘‘(4) REPORT TO CONGRESS.—Not later than July 1, 2009, 
and July 1 of each succeeding year, the Secretary shall submit 
to the authorizing committees a report that contains, for each 
proprietary institution of higher education that receives assist-
ance under this title, as provided in the audited financial state-
ments submitted to the Secretary by each institution pursuant 
to the requirements of subsection (a)(24)— 
‘‘(A) the amount and percentage of such institution’s 
revenues received from sources under this title; and 
‘‘(B) the amount and percentage of such institution’s 
revenues received from other sources. 
‘‘(e) CODE
OF CONDUCT REQUIREMENTS.—An institution of 
higher education’s code of conduct, as required under subsection 
(a)(25), shall include the following requirements: 
‘‘(1) BAN ON REVENUE-SHARING ARRANGEMENTS.—
H. R. 4137—236 
‘‘(A) PROHIBITION.—The institution shall not enter into 
any revenue-sharing arrangement with any lender. 
‘‘(B) DEFINITION.—For purposes of this paragraph, the 
term ‘revenue-sharing arrangement’ means an arrange-
ment between an institution and a lender under which— 
‘‘(i) a lender provides or issues a loan that is made, 
insured, or guaranteed under this title to students 
attending the institution or to the families of such 
students; and 
‘‘(ii) the institution recommends the lender or the 
loan products of the lender and in exchange, the lender 
pays a fee or provides other material benefits, including 
revenue or profit sharing, to the institution, an officer 
or employee of the institution, or an agent. 
‘‘(2) GIFT BAN.— 
‘‘(A) PROHIBITION.—No officer or employee of the 
institution who is employed in the financial aid office of 
the institution or who otherwise has responsibilities with 
respect to education loans, or agent who has responsibilities 
with respect to education loans, shall solicit or accept any 
gift from a lender, guarantor, or servicer of education loans. 
‘‘(B) DEFINITION OF GIFT.— 
‘‘(i) IN GENERAL.—In this paragraph, the term ‘gift’ 
means any gratuity, favor, discount, entertainment, 
hospitality, loan, or other item having a monetary 
value of more than a de minimus amount. The term 
includes a gift of services, transportation, lodging, or 
meals, whether provided in kind, by purchase of a 
ticket, payment in advance, or reimbursement after 
the expense has been incurred. 
‘‘(ii) EXCEPTIONS.—The term ‘gift’ shall not include 
any of the following: 
‘‘(I) Standard material, activities, or programs 
on issues related to a loan, default aversion, 
default prevention, or financial literacy, such as 
a brochure, a workshop, or training. 
‘‘(II) Food, refreshments, training, or informa-
tional material furnished to an officer or employee 
of an institution, or to an agent, as an integral 
part of a training session that is designed to 
improve the service of a lender, guarantor, or 
servicer of education loans to the institution, if 
such training contributes to the professional 
development of the officer, employee, or agent. 
‘‘(III) Favorable terms, conditions, and bor-
rower benefits on an education loan provided to 
a student employed by the institution if such 
terms, conditions, or benefits are comparable to 
those provided to all students of the institution. 
‘‘(IV) Entrance and exit counseling services 
provided to borrowers to meet the institution’s 
responsibilities for entrance and exit counseling 
as required by subsections (b) and (l) of section 
485, as long as— 
‘‘(aa) the institution’s staff are in control 
of the counseling, (whether in person or via 
electronic capabilities); and
H. R. 4137—237 
‘‘(bb) such counseling does not promote 
the products or services of any specific lender. 
‘‘(V) Philanthropic contributions to an institu-
tion from a lender, servicer, or guarantor of edu-
cation loans that are unrelated to education loans 
or any contribution from any lender, guarantor, 
or servicer that is not made in exchange for any 
advantage related to education loans. 
‘‘(VI) State education grants, scholarships, or 
financial aid funds administered by or on behalf 
of a State. 
‘‘(iii) RULE FOR GIFTS TO FAMILY MEMBERS.—For 
purposes of this paragraph, a gift to a family member 
of an officer or employee of an institution, to a family 
member of an agent, or to any other individual based 
on that individual’s relationship with the officer, 
employee, or agent, shall be considered a gift to the 
officer, employee, or agent if— 
‘‘(I) the gift is given with the knowledge and 
acquiescence of the officer, employee, or agent; and 
‘‘(II) the officer, employee, or agent has reason 
to believe the gift was given because of the official 
position of the officer, employee, or agent. 
‘‘(3) CONTRACTING ARRANGEMENTS PROHIBITED.— 
‘‘(A) PROHIBITION.—An officer or employee who is 
employed in the financial aid office of the institution or 
who otherwise has responsibilities with respect to education 
loans, or an agent who has responsibilities with respect 
to education loans, shall not accept from any lender or 
affiliate of any lender any fee, payment, or other financial 
benefit (including the opportunity to purchase stock) as 
compensation for any type of consulting arrangement or 
other contract to provide services to a lender or on behalf 
of a lender relating to education loans. 
‘‘(B) EXCEPTIONS.—Nothing in this subsection shall be 
construed as prohibiting— 
‘‘(i) an officer or employee of an institution who 
is not employed in the institution’s financial aid office 
and who does not otherwise have responsibilities with 
respect to education loans, or an agent who does not 
have responsibilities with respect to education loans, 
from performing paid or unpaid service on a board 
of directors of a lender, guarantor, or servicer of edu-
cation loans; 
‘‘(ii) an officer or employee of the institution who 
is not employed in the institution’s financial aid office 
but who has responsibility with respect to education 
loans as a result of a position held at the institution, 
or an agent who has responsibility with respect to 
education loans, from performing paid or unpaid 
service on a board of directors of a lender, guarantor, 
or servicer of education loans, if the institution has 
a written conflict of interest policy that clearly sets 
forth that officers, employees, or agents must recuse 
themselves from participating in any decision of the 
board regarding education loans at the institution; or
H. R. 4137—238 
‘‘(iii) an officer, employee, or contractor of a lender, 
guarantor, or servicer of education loans from serving 
on a board of directors, or serving as a trustee, of 
an institution, if the institution has a written conflict 
of interest policy that the board member or trustee 
must recuse themselves from any decision regarding 
education loans at the institution. 
‘‘(4) INTERACTION WITH BORROWERS.—The institution shall 
not— 
‘‘(A) for any first-time borrower, assign, through award 
packaging or other methods, the borrower’s loan to a par-
ticular lender; or 
‘‘(B) refuse to certify, or delay certification of, any 
loan based on the borrower’s selection of a particular lender 
or guaranty agency. 
‘‘(5) PROHIBITION
ON
OFFERS
OF
FUNDS
FOR
PRIVATE 
LOANS.— 
‘‘(A) PROHIBITION.—The institution shall not request 
or accept from any lender any offer of funds to be used 
for private education loans (as defined in section 140 of 
the Truth in Lending Act), including funds for an oppor-
tunity pool loan, to students in exchange for the institution 
providing concessions or promises regarding providing the 
lender with— 
‘‘(i) a specified number of loans made, insured, 
or guaranteed under this title; 
‘‘(ii) a specified loan volume of such loans; or 
‘‘(iii) a preferred lender arrangement for such 
loans. 
‘‘(B) DEFINITION OF OPPORTUNITY POOL LOAN.—In this 
paragraph, the term ‘opportunity pool loan’ means a private 
education loan made by a lender to a student attending 
the institution or the family member of such a student 
that involves a payment, directly or indirectly, by such 
institution of points, premiums, additional interest, or 
financial support to such lender for the purpose of such 
lender extending credit to the student or the family. 
‘‘(6) BAN ON STAFFING ASSISTANCE.— 
‘‘(A) PROHIBITION.—The institution shall not request 
or accept from any lender any assistance with call center 
staffing or financial aid office staffing. 
‘‘(B) CERTAIN
ASSISTANCE
PERMITTED.—Nothing in 
paragraph (1) shall be construed to prohibit the institution 
from requesting or accepting assistance from a lender 
related to— 
‘‘(i) professional development training for financial 
aid administrators; 
‘‘(ii) providing educational counseling materials, 
financial literacy materials, or debt management mate-
rials to borrowers, provided that such materials dis-
close to borrowers the identification of any lender that 
assisted in preparing or providing such materials; or 
‘‘(iii) staffing services on a short-term, non-
recurring basis to assist the institution with financial 
aid-related functions during emergencies, including 
State-declared or federally declared natural disasters,
H. R. 4137—239 
federally declared national disasters, and other local-
ized disasters and emergencies identified by the Sec-
retary. 
‘‘(7) ADVISORY BOARD COMPENSATION.—Any employee who 
is employed in the financial aid office of the institution, or 
who otherwise has responsibilities with respect to education 
loans or other student financial aid of the institution, and 
who serves on an advisory board, commission, or group estab-
lished by a lender, guarantor, or group of lenders or guarantors, 
shall be prohibited from receiving anything of value from the 
lender, guarantor, or group of lenders or guarantors, except 
that the employee may be reimbursed for reasonable expenses 
incurred in serving on such advisory board, commission, or 
group. 
‘‘(f) INSTITUTIONAL REQUIREMENTS FOR TEACH-OUTS.— 
‘‘(1) IN GENERAL.—In the event the Secretary initiates the 
limitation, suspension, or termination of the participation of 
an institution of higher education in any program under this 
title under the authority of subsection (c)(1)(F) or initiates 
an emergency action under the authority of subsection (c)(1)(G) 
and its prescribed regulations, the Secretary shall require that 
institution to prepare a teach-out plan for submission to the 
institution’s accrediting agency or association in compliance 
with section 496(c)(4), the Secretary’s regulations on teach- 
out plans, and the standards of the institution’s accrediting 
agency or association. 
‘‘(2) TEACH-OUT
PLAN
DEFINED.—In this subsection, the 
term ‘teach-out plan’ means a written plan that provides for 
the equitable treatment of students if an institution of higher 
education ceases to operate before all students have completed 
their program of study, and may include, if required by the 
institution’s accrediting agency or association, an agreement 
between institutions for such a teach-out plan. 
‘‘(g) INSPECTOR GENERAL REPORT ON GIFT BAN VIOLATIONS.— 
The Inspector General of the Department shall— 
‘‘(1) submit an annual report to the authorizing committees 
identifying all violations of an institution’s code of conduct 
that the Inspector General has substantiated during the pre-
ceding year relating to the gift ban provisions described in 
subsection (f)(2); and 
‘‘(2) make the report available to the public through the 
Department’s website. 
‘‘(h) PREFERRED LENDER LIST REQUIREMENTS.— 
‘‘(1) IN GENERAL.—In compiling, maintaining, and making 
available a preferred lender list as required under subsection 
(a)(27), the institution will— 
‘‘(A) clearly and fully disclose on such preferred lender 
list— 
‘‘(i) not less than the information required to be 
disclosed under section 153(a)(2)(A); 
‘‘(ii) why the institution has entered into a pre-
ferred lender arrangement with each lender on the 
preferred lender list, particularly with respect to terms 
and conditions or provisions favorable to the borrower; 
and
H. R. 4137—240 
‘‘(iii) that the students attending the institution, 
or the families of such students, do not have to borrow 
from a lender on the preferred lender list; 
‘‘(B) ensure, through the use of the list of lender affili-
ates provided by the Secretary under paragraph (2), that— 
‘‘(i) there are not less than three lenders of loans 
made under part B that are not affiliates of each 
other included on the preferred lender list and, if the 
institution recommends, promotes, or endorses private 
education loans, there are not less than two lenders 
of private education loans that are not affiliates of 
each other included on the preferred lender list; and 
‘‘(ii) the preferred lender list under this para-
graph— 
‘‘(I) specifically indicates, for each listed 
lender, whether the lender is or is not an affiliate 
of each other lender on the preferred lender list; 
and 
‘‘(II) if a lender is an affiliate of another lender 
on the preferred lender list, describes the details 
of such affiliation; 
‘‘(C) prominently disclose the method and criteria used 
by the institution in selecting lenders with which to enter 
into preferred lender arrangements to ensure that such 
lenders are selected on the basis of the best interests 
of the borrowers, including— 
‘‘(i) payment of origination or other fees on behalf 
of the borrower; 
‘‘(ii) highly competitive interest rates, or other 
terms and conditions or provisions of loans under this 
title or private education loans; 
‘‘(iii) high-quality servicing for such loans; or 
‘‘(iv) additional benefits beyond the standard terms 
and conditions or provisions for such loans; 
‘‘(D) exercise a duty of care and a duty of loyalty 
to compile the preferred lender list under this paragraph 
without prejudice and for the sole benefit of the students 
attending the institution, or the families of such students; 
‘‘(E) not deny or otherwise impede the borrower’s choice 
of a lender or cause unnecessary delay in loan certification 
under this title for those borrowers who choose a lender 
that is not included on the preferred lender list; and 
‘‘(F) comply with such other requirements as the Sec-
retary may prescribe by regulation. 
‘‘(2) LENDER AFFILIATES LIST.— 
‘‘(A) IN GENERAL.—The Secretary shall maintain and 
regularly update a list of lender affiliates of all eligible 
lenders, and shall provide such list to institutions for use 
in carrying out paragraph (1)(B). 
‘‘(B) USE OF MOST RECENT LIST.—An institution shall 
use the most recent list of lender affiliates provided by 
the Secretary under subparagraph (A) in carrying out para-
graph (1)(B).’’. 
(d) DEFINITIONS.—Section 487(i) (as redesignated by subsection 
(c)(1)) (20 U.S.C. 1087(i)) is further amended— 
(1) by striking ‘‘(i) DEFINITION OF ELIGIBLE INSTITUTION.— 
For the purpose of this section, the’’ and inserting the following:
H. R. 4137—241 
‘‘(i) DEFINITIONS.—For the purpose of this section: 
‘‘(1) AGENT.—The term ‘agent’ has the meaning given the 
term in section 151. 
‘‘(2) AFFILIATE.—The term ‘affiliate’ means a person that 
controls, is controlled by, or is under common control with 
another person. A person controls, is controlled by, or is under 
common control with another person if— 
‘‘(A) the person directly or indirectly, or acting through 
one or more others, owns, controls, or has the power to 
vote five percent or more of any class of voting securities 
of such other person; 
‘‘(B) the person controls, in any manner, the election 
of a majority of the directors or trustees of such other 
person; or 
‘‘(C) the Secretary determines (after notice and oppor-
tunity for a hearing) that the person directly or indirectly 
exercises a controlling interest over the management or 
policies of such other person’s education loans. 
‘‘(3) EDUCATION LOAN.—The term ‘education loan’ has the 
meaning given the term in section 151. 
‘‘(4) ELIGIBLE INSTITUTION.—The’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(5) OFFICER.—The term ‘officer’ has the meaning given 
the term in section 151. 
‘‘(6) PREFERRED
LENDER
ARRANGEMENT.—The term ‘pre-
ferred lender arrangement’ has the meaning given the term 
in section 151.’’. 
SEC. 494. REGULATORY RELIEF AND IMPROVEMENT. 
Section 487A(b) (20 U.S.C. 1094a(b)) is amended— 
(1) by amending paragraph (1) to read as follows: 
‘‘(1) IN GENERAL.—The Secretary shall continue the vol-
untary participation of any experimental sites in existence as 
of July 1, 2007, unless the Secretary determines that such 
site’s participation has not been successful in carrying out 
the purposes of this section. Any activities approved by the 
Secretary prior to such date that have not been successful 
in carrying out the purposes of this section shall be discontinued 
not later than June 30, 2009.’’; 
(2) in paragraph (2), by striking the matter preceding 
subparagraph (A) and inserting the following: 
‘‘(2) REPORT.—The Secretary shall review and evaluate the 
experience of institutions participating as experimental sites 
and shall, on a biennial basis, submit a report based on the 
review and evaluation to the authorizing committees. Such 
report shall include—’’; and 
(3) in paragraph (3)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘Upon the submission of the report 
required by paragraph (2), the’’ and inserting ‘‘The’’; 
and 
(ii) by inserting ‘‘periodically’’ after ‘‘authorized to’’; 
(B) by striking subparagraph (B); 
(C) by redesignating subparagraph (C) as subpara-
graph (B); and 
(D) in subparagraph (B) (as redesignated by subpara-
graph (C))—
H. R. 4137—242 
(i) by inserting ‘‘, including requirements related 
to the award process and disbursement of student 
financial aid (such as innovative delivery systems for 
modular or compressed courses, or other innovative 
systems), verification of student financial aid applica-
tion data, entrance and exit interviews, or other 
management procedures or processes as determined 
in the negotiated rulemaking process under section 
492’’ after ‘‘requirements in this title’’; 
(ii) by inserting ‘‘(other than an award rule related 
to an experiment in modular or compressed schedules)’’ 
after ‘‘award rules’’; and 
(iii) by inserting ‘‘unless the waiver of such provi-
sions is authorized by another provision under this 
title’’ before the period at the end. 
SEC. 494A. TRANSFER OF ALLOTMENTS. 
Section 488 (20 U.S.C. 1095) is amended in the first sentence— 
(1) in paragraph (1), by striking ‘‘and’’ after the semicolon; 
(2) in paragraph (2), by striking ‘‘413D.’’ and inserting 
‘‘413D or 462 (or both); and’’; and 
(3) by adding at the end ‘‘(3) transfer 25 percent of the 
institution’s allotment under section 413D to the institution’s 
allotment under section 442.’’. 
SEC. 494B. PURPOSE OF ADMINISTRATIVE PAYMENTS. 
Section 489(b)(1) (20 U.S.C. 1096(b)(1)) is amended by striking 
‘‘offsetting the administrative costs of’’ and inserting ‘‘admin-
istering’’. 
SEC. 494C. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSIST-
ANCE. 
(a) AMENDMENTS.—Section 491 (20 U.S.C. 1098) is amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (B), by striking ‘‘and’’ after the 
semicolon; 
(B) in subparagraph (C), by striking the period and 
inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(D) to provide knowledge and understanding of early 
intervention programs, and to make recommendations that 
will result in early awareness by low- and moderate-income 
students and families— 
‘‘(i) of their eligibility for assistance under this 
title; and 
‘‘(ii) to the extent practicable, of their eligibility 
for other forms of State and institutional need-based 
student assistance; 
‘‘(E) to make recommendations that will expand and 
improve partnerships among the Federal Government, 
States, institutions of higher education, and private entities 
to increase the awareness and the total amount of need- 
based student assistance available to low- and moderate- 
income students; and 
‘‘(F) to collect information on Federal regulations, and 
on the impact of Federal regulations on student financial 
assistance and on the cost of receiving a postsecondary
H. R. 4137—243 
education, and to make recommendations to help stream-
line the regulations for institutions of higher education 
from all sectors.’’; 
(2) by striking subsection (c) and inserting the following 
new subsection: 
‘‘(c) MEMBERSHIP.—(1) The Advisory Committee shall consist 
of 11 members appointed as follows: 
‘‘(A) Four members shall be appointed by the President 
pro tempore of the Senate, of whom two members shall be 
appointed from recommendations by the Majority Leader of 
the Senate, and two members shall be appointed from rec-
ommendations by the Minority Leader of the Senate. 
‘‘(B) Four members shall be appointed by the Speaker 
of the House of Representatives, of whom two members shall 
be appointed from recommendations by the Majority Leader 
of the House of Representatives, and two members shall be 
appointed from recommendations by the Minority Leader of 
the House of Representatives. 
‘‘(C) Three members shall be appointed by the Secretary, 
of whom at least one member shall be a student. 
‘‘(2) Each member of the Advisory Committee, with the excep-
tion of a student member, shall be appointed on the basis of tech-
nical qualifications, professional experience, and demonstrated 
knowledge in the fields of higher education, student financial aid, 
financing post-secondary education, and the operations and 
financing of student loan guarantee agencies. 
‘‘(3) The appointment of a member under subparagraph (A) 
or (B) of paragraph (1) shall be effective upon publication of such 
appointment in the Congressional Record.’’; 
(3) in subsection (d)— 
(A) in paragraph (6), by striking ‘‘, but nothing in 
this section shall authorize the committee to perform such 
studies, surveys, or analyses’’; 
(B) in paragraph (8), by striking ‘‘and’’ after the semi-
colon; 
(C) by redesignating paragraph (9) as paragraph (11); 
and 
(D) by inserting after paragraph (8) (as amended by 
subparagraph (B)) the following: 
‘‘(9) provide an annual report to the authorizing committees 
that provides analyses and policy recommendations regarding— 
‘‘(A) the adequacy of need-based grant aid for low- 
and moderate-income students; and 
‘‘(B) the postsecondary enrollment and graduation rates 
of low- and moderate-income students; 
‘‘(10) develop and maintain an information clearinghouse 
to help institutions of higher education understand the regu-
latory impact of the Federal Government on institutions of 
higher education from all sectors, in order to raise awareness 
of institutional legal obligations and provide information to 
improve compliance with, and to reduce the duplication and 
inefficiency of, Federal regulations; and’’; 
(4) in subsection (e)— 
(A) in the matter preceding subparagraph (A) of para-
graph (1), by striking ‘‘3’’ and inserting ‘‘4’’; and 
(B) in paragraph (2), by striking ‘‘A member of the 
Advisory Committee shall’’ and all that follows through
H. R. 4137—244 
‘‘on the Advisory Committee.’’ and inserting ‘‘A member 
of the Advisory Committee serving on the date of enactment 
of the Higher Education Opportunity Act shall be permitted 
to serve the duration of the member’s term, regardless 
of whether the member was previously appointed to more 
than one term.’’; 
(5) in subsection (j)— 
(A) in paragraph (1)— 
(i) by inserting ‘‘and simplifications’’ after ‘‘delivery 
processes’’; and 
(ii) by striking ‘‘including the implementation of 
a performance-based organization within the Depart-
ment, and report to Congress regarding such mod-
ernization on not less than an annual basis,’’; and 
(B) by striking paragraphs (4) and (5) and inserting 
the following: 
‘‘(4) conduct a review and analysis of regulations in accord-
ance with subsection (l); and 
‘‘(5) conduct a study in accordance with subsection (m).’’; 
(6) in subsection (k), by striking ‘‘2004’’ and inserting 
‘‘2014’’; and 
(7) by adding at the end the following: 
‘‘(l) REVIEW AND ANALYSIS OF REGULATIONS.— 
‘‘(1) RECOMMENDATIONS.—The Advisory Committee shall 
make recommendations to the Secretary and the authorizing 
committees for consideration of future legislative action 
regarding redundant or outdated regulations consistent with 
the Secretary’s requirements under section 498B. 
‘‘(2) REVIEW AND ANALYSIS OF REGULATIONS.— 
‘‘(A) REVIEW OF CURRENT REGULATIONS.—To meet the 
requirements of subsection (d)(10), the Advisory Committee 
shall conduct a review and analysis of the regulations 
issued by Federal agencies that are in effect at the time 
of the review and that apply to the operations or activities 
of institutions of higher education from all sectors. The 
review and analysis may include a determination of 
whether the regulation is duplicative, is no longer nec-
essary, is inconsistent with other Federal requirements, 
or is overly burdensome. In conducting the review, the 
Advisory Committee shall pay specific attention to evalu-
ating ways in which regulations under this title affecting 
institutions of higher education (other than institutions 
described in section 102(a)(1)(C)), that have received in 
each of the two most recent award years prior to the 
date of enactment of Higher Education Opportunity Act 
less than $200,000 in funds through this title, may be 
improved, streamlined, or eliminated. 
‘‘(B) REVIEW
AND
COLLECTION
OF
FUTURE
REGULA-
TIONS.—The Advisory Committee shall— 
‘‘(i) monitor all Federal regulations, including 
notices of proposed rulemaking, for their impact or 
potential impact on higher education; and 
‘‘(ii) provide a succinct description of each regula-
tion or proposed regulation that is generally relevant 
to institutions of higher education from all sectors.
H. R. 4137—245 
‘‘(C) MAINTENANCE OF PUBLIC WEBSITE.—The Advisory 
Committee shall develop and maintain an easy to use, 
searchable, and regularly updated website that— 
‘‘(i) provides information collected in subparagraph 
(B); 
‘‘(ii) provides an area for the experts and members 
of the public to provide recommendations for ways 
in which the regulations may be streamlined; and 
‘‘(iii) publishes the study conducted by the National 
Research Council of the National Academy of Sciences 
under section 1106 of the Higher Education Oppor-
tunity Act. 
‘‘(3) CONSULTATION.— 
‘‘(A) IN GENERAL.—In carrying out the review, analysis, 
and development of the website required under paragraph 
(2), the Advisory Committee shall consult with the Sec-
retary, other Federal agencies, relevant representatives of 
institutions of higher education, individuals who have 
expertise and experience with Federal regulations, and the 
review panels described in subparagraph (B). 
‘‘(B) REVIEW PANELS.—The Advisory Committee shall 
convene not less than two review panels of representatives 
of the groups involved in higher education, including 
individuals involved in student financial assistance pro-
grams under this title, who have experience and expertise 
in the regulations issued by the Federal Government that 
affect all sectors of higher education, in order to review 
the regulations and to provide recommendations to the 
Advisory Committee with respect to the review and analysis 
under paragraph (2). The panels shall be made up of 
experts in areas such as the operations of the financial 
assistance programs, the institutional eligibility require-
ments for the financial assistance programs, regulations 
not directly related to the operations or the institutional 
eligibility requirements of the financial assistance pro-
grams, and regulations for dissemination of information 
to students about the financial assistance programs. 
‘‘(4) PERIODIC UPDATES TO THE AUTHORIZING COMMITTEES.— 
The Advisory Committee shall— 
‘‘(A) submit, not later than two years after the comple-
tion of the negotiated rulemaking process required under 
section 492 resulting from the amendments to this Act 
made by the Higher Education Opportunity Act, a report 
to the authorizing committees and the Secretary detailing 
the review panels’ findings and recommendations with 
respect to the review of regulations; and 
‘‘(B) provide periodic updates to the authorizing 
committees regarding— 
‘‘(i) the impact of all Federal regulations on all 
sectors of higher education; and 
‘‘(ii) suggestions provided through the website for 
streamlining or eliminating duplicative regulations. 
‘‘(5) 
ADDITIONAL
SUPPORT.—The 
Secretary 
and 
the 
Inspector General of the Department shall provide such assist-
ance and resources to the Advisory Committee as the Secretary 
and Inspector General determine are necessary to conduct the 
review and analysis required by this subsection.
H. R. 4137—246 
‘‘(m) STUDY
OF INNOVATIVE PATHWAYS
TO BACCALAUREATE 
DEGREE ATTAINMENT.— 
‘‘(1) STUDY REQUIRED.—The Advisory Committee shall con-
duct a study of the feasibility of increasing baccalaureate degree 
attainment rates by reducing the costs and financial barriers 
to attaining a baccalaureate degree through innovative pro-
grams. 
‘‘(2) SCOPE
OF
STUDY.—The Advisory Committee shall 
examine new and existing programs that promote baccalaureate 
degree attainment through innovative ways, such as dual or 
concurrent enrollment programs, changes made to the Federal 
Pell Grant program, simplification of the needs analysis process, 
compressed or modular scheduling, articulation agreements, 
and programs that allow two-year institutions of higher edu-
cation to offer baccalaureate degrees. 
‘‘(3) REQUIRED ASPECTS OF THE STUDY.—In performing the 
study described in this subsection, the Advisory Committee 
shall examine the following aspects of such innovative pro-
grams: 
‘‘(A) The impact of such programs on baccalaureate 
attainment rates. 
‘‘(B) The degree to which a student’s total cost of 
attaining a baccalaureate degree can be reduced by such 
programs. 
‘‘(C) The ways in which low- and moderate-income 
students can be specifically targeted by such programs. 
‘‘(D) The ways in which nontraditional students can 
be specifically targeted by such programs. 
‘‘(E) The cost-effectiveness for the Federal Government, 
States, and institutions of higher education to implement 
such programs. 
‘‘(4) CONSULTATION.— 
‘‘(A) IN GENERAL.—In performing the study described 
in this subsection, the Advisory Committee shall consult 
with a broad range of interested parties in higher edu-
cation, including parents, students, appropriate representa-
tives of secondary schools and institutions of higher edu-
cation, appropriate State administrators, administrators of 
dual or concurrent enrollment programs, and appropriate 
Department officials. 
‘‘(B) CONSULTATION WITH THE AUTHORIZING COMMIT-
TEES.—The Advisory Committee shall consult on a regular 
basis with the authorizing committees in carrying out the 
study required by this subsection. 
‘‘(5) REPORTS TO AUTHORIZING COMMITTEES.— 
‘‘(A) INTERIM REPORT.—The Advisory Committee shall 
prepare and submit to the authorizing committees and 
the Secretary an interim report, not later than one year 
after the date of enactment of the Higher Education Oppor-
tunity Act, describing the progress made in conducting 
the study required by this subsection and any preliminary 
findings on the topics identified under paragraph (2). 
‘‘(B) FINAL REPORT.—The Advisory Committee shall, 
not later than three years after the date of enactment 
of the Higher Education Opportunity Act, prepare and 
submit to the authorizing committees and the Secretary 
a final report on the study, including recommendations
H. R. 4137—247 
for legislative, regulatory, and administrative changes 
based on findings related to the topics identified under 
paragraph (2).’’. 
(b) CONFORMING AMENDMENTS.—Subsections (a)(1), (b), and 
(d)(6) of section 491 (20 U.S.C. 1098) are each amended by striking 
‘‘Congress’’ and inserting ‘‘authorizing committees’’. 
SEC. 494D. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING. 
(a) REGIONAL MEETINGS.—Section 492(a) (20 U.S.C. 1098a(a)) 
is amended— 
(1) in paragraph (1), by inserting ‘‘State student grant 
agencies,’’ after ‘‘institutions of higher education,’’; and 
(2) in paragraph (2), by striking ‘‘, as amended by the 
Higher Education Amendments of 1998’’. 
(b) NEGOTIATED RULEMAKING.—Section 492(b)(1) (20 U.S.C. 
1098a(b)(1)) is amended— 
(1) in the first sentence, by striking ‘‘as amended by the 
Higher Education Amendments of 1998’’; and 
(2) in the third sentence— 
(A) by striking ‘‘To the extent possible, the Secretary’’ 
and inserting ‘‘The Secretary’’; and 
(B) by inserting ‘‘with demonstrated expertise or 
experience in the relevant subjects under negotiation,’’ after 
‘‘select individuals’’. 
SEC. 494E. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT. 
Section 493A (20 U.S.C. 1098c) is repealed. 
SEC. 494F. TECHNICAL AMENDMENT OF INCOME-BASED REPAYMENT. 
Section 493C(b)(1) (20 U.S.C. 1098e(b)(1)) is amended by 
striking ‘‘or is already in default’’ and inserting ‘‘or had been in 
default’’. 
PART H—PROGRAM INTEGRITY 
SEC. 495. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION. 
Section 496 (20 U.S.C. 1099b) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (4) and inserting the fol-
lowing: 
‘‘(4)(A) such agency or association consistently applies and 
enforces standards that respect the stated mission of the 
institution of higher education, including religious missions, 
and that ensure that the courses or programs of instruction, 
training, or study offered by the institution of higher education, 
including distance education or correspondence courses or pro-
grams, are of sufficient quality to achieve, for the duration 
of the accreditation period, the stated objective for which the 
courses or the programs are offered; and 
‘‘(B) if such agency or association has or seeks to include 
within its scope of recognition the evaluation of the quality 
of institutions or programs offering distance education or cor-
respondence education, such agency or association shall, in 
addition to meeting the other requirements of this subpart, 
demonstrate to the Secretary that— 
‘‘(i) the agency or association’s standards effectively 
address the quality of an institution’s distance education
H. R. 4137—248 
or correspondence education in the areas identified in para-
graph (5), except that— 
‘‘(I) the agency or association shall not be required 
to have separate standards, procedures, or policies for 
the evaluation of distance education or correspondence 
education institutions or programs in order to meet 
the requirements of this subparagraph; and 
‘‘(II) in the case that the agency or association 
is recognized by the Secretary, the agency or associa-
tion shall not be required to obtain the approval of 
the Secretary to expand its scope of accreditation to 
include distance education or correspondence edu-
cation, provided that the agency or association notifies 
the Secretary in writing of the change in scope; and 
‘‘(ii) the agency or association requires an institution 
that offers distance education or correspondence education 
to have processes through which the institution establishes 
that the student who registers in a distance education 
or correspondence education course or program is the same 
student who participates in and completes the program 
and receives the academic credit;’’; 
(B) in paragraph (5), by amending subparagraph (A) 
to read as follows: 
‘‘(A) success with respect to student achievement in 
relation to the institution’s mission, which may include 
different standards for different institutions or programs, 
as established by the institution, including, as appropriate, 
consideration of State licensing examinations, consideration 
of course completion, and job placement rates;’’; 
(C) by striking paragraph (6) and inserting the fol-
lowing: 
‘‘(6) such an agency or association shall establish and apply 
review procedures throughout the accrediting process, including 
evaluation and withdrawal proceedings, which comply with due 
process procedures that provide— 
‘‘(A) for adequate written specification of— 
‘‘(i) requirements, including clear standards for an 
institution of higher education or program to be accred-
ited; and 
‘‘(ii) identified deficiencies at the institution or pro-
gram examined; 
‘‘(B) for sufficient opportunity for a written response, 
by an institution or program, regarding any deficiencies 
identified by the agency or association to be considered 
by the agency or association— 
‘‘(i) within a timeframe determined by the agency 
or association; and 
‘‘(ii) prior to final action in the evaluation and 
withdrawal proceedings; 
‘‘(C) upon the written request of an institution or pro-
gram, for an opportunity for the institution or program 
to appeal any adverse action under this section, including 
denial, withdrawal, suspension, or termination of accredita-
tion, taken against the institution or program, prior to 
such action becoming final at a hearing before an appeals 
panel that—
H. R. 4137—249 
‘‘(i) shall not include current members of the 
agency’s or association’s underlying decisionmaking 
body that made the adverse decision; and 
‘‘(ii) is subject to a conflict of interest policy; 
‘‘(D) for the right to representation and participation 
by counsel for an institution or program during an appeal 
of the adverse action; 
‘‘(E) for a process, in accordance with written proce-
dures developed by the agency or association, through 
which an institution or program, before a final adverse 
action based solely upon a failure to meet a standard 
or criterion pertaining to finances, may on one occasion 
seek review of significant financial information that was 
unavailable to the institution or program prior to the deter-
mination of the adverse action, and that bears materially 
on the financial deficiencies identified by the agency or 
association; 
‘‘(F) in the case that the agency or association deter-
mines that the new financial information submitted by 
the institution or program under subparagraph (E) meets 
the criteria of significance and materiality described in 
such subparagraph, for consideration by the agency or 
association of the new financial information prior to the 
adverse action described in such subparagraph becoming 
final; and 
‘‘(G) that any determination by the agency or associa-
tion made with respect to the new financial information 
described in subparagraph (E) shall not be separately 
appealable by the institution or program.’’; 
(2) in subsection (c)— 
(A) in paragraph (1), by inserting ‘‘, including those 
regarding distance education’’ after ‘‘their responsibilities’’; 
(B) by redesignating paragraphs (2) through (6) as 
paragraphs (4) through (8); 
(C) by inserting after paragraph (1) (as amended by 
subparagraph (A)) the following: 
‘‘(2) monitors the growth of programs at institutions that 
are experiencing significant enrollment growth; 
‘‘(3) requires an institution to submit for approval to the 
accrediting agency a teach-out plan upon the occurrence of 
any of the following events: 
‘‘(A) the Department notifies the accrediting agency 
of an action against the institution pursuant to section 
487(f); 
‘‘(B) the accrediting agency acts to withdraw, termi-
nate, or suspend the accreditation of the institution; or 
‘‘(C) the institution notifies the accrediting agency that 
the institution intends to cease operations;’’; 
(D) by striking paragraph (7) (as redesignated by 
subparagraph (B)) and inserting the following: 
‘‘(7) makes available to the public and the State licensing 
or authorizing agency, and submits to the Secretary, a summary 
of agency or association actions, including— 
‘‘(A) the award of accreditation or reaccreditation of 
an institution; 
‘‘(B) final denial, withdrawal, suspension, or termi-
nation of accreditation of an institution, and any findings
H. R. 4137—250 
made in connection with the action taken, together with 
the official comments of the affected institution; and 
‘‘(C) any other adverse action taken with respect to 
an institution or placement on probation of an institution;’’; 
(E) in paragraph (8) (as redesignated by subparagraph 
(B)), by striking the period and inserting ‘‘; and’’; and 
(F) by adding at the end the following: 
‘‘(9) confirms, as a part of the agency’s or association’s 
review for accreditation or reaccreditation, that the institution 
has transfer of credit policies— 
‘‘(A) that are publicly disclosed; and 
‘‘(B) that include a statement of the criteria established 
by the institution regarding the transfer of credit earned 
at another institution of higher education.’’; 
(3) in subsection (g), by adding at the end the following: 
‘‘Nothing in this section shall be construed to permit the Sec-
retary to establish any criteria that specifies, defines, or pre-
scribes the standards that accrediting agencies or associations 
shall use to assess any institution’s success with respect to 
student achievement.’’; 
(4) in subsection (o), by adding at the end the following: 
‘‘Notwithstanding any other provision of law, the Secretary 
shall not promulgate any regulation with respect to the stand-
ards of an accreditation agency or association described in 
subsection (a)(5).’’; and 
(5) by adding at the end the following new subsection: 
‘‘(p) RULE OF CONSTRUCTION.—Nothing in subsection (a)(5) shall 
be construed to restrict the ability of— 
‘‘(1) an accrediting agency or association to set, with the 
involvement of its members, and to apply, accreditation stand-
ards for or to institutions or programs that seek review by 
the agency or association; or 
‘‘(2) an institution to develop and use institutional stand-
ards to show its success with respect to student achievement, 
which achievement may be considered as part of any accredita-
tion review. 
‘‘(q) REVIEW OF SCOPE CHANGES.—The Secretary shall require 
a review, at the next available meeting of the National Advisory 
Committee on Institutional Quality and Integrity, of any change 
in scope undertaken by an agency or association under subsection 
(a)(4)(B)(i)(II) if the enrollment of an institution that offers distance 
education or correspondence education that is accredited by such 
agency or association increases by 50 percent or more within any 
one institutional fiscal year.’’. 
SEC. 496. ELIGIBILITY AND CERTIFICATION PROCEDURES. 
Section 498 (20 U.S.C. 1099c) is amended— 
(1) in subsection (d)(1)(B), by inserting ‘‘and’’ after the 
semicolon; and 
(2) by adding at the end the following: 
‘‘(k) TREATMENT OF TEACH-OUTS AT ADDITIONAL LOCATIONS.— 
‘‘(1) IN
GENERAL.—A location of a closed institution of 
higher education shall be eligible as an additional location 
of an eligible institution of higher education, as defined pursu-
ant to regulations of the Secretary, for the purposes of a teach- 
out described in section 487(f), if such teach-out has been 
approved by the institution’s accrediting agency.
H. R. 4137—251 
‘‘(2) SPECIAL RULE.—An institution of higher education that 
conducts a teach-out through the establishment of an additional 
location described in paragraph (1) shall be permitted to estab-
lish a permanent additional location at a closed institution 
and shall not be required— 
‘‘(A) to meet the requirements of sections 102(b)(1)(E) 
and 102(c)(1)(C) for such additional location; or 
‘‘(B) to assume the liabilities of the closed institution.’’. 
SEC. 497. PROGRAM REVIEW AND DATA. 
Section 498A(b) (20 U.S.C. 1099c–1(b)) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ after the semicolon; 
(2) in paragraph (5) by striking the period and inserting 
a semicolon; and 
(3) by adding at the end the following: 
‘‘(6) provide to an institution of higher education an ade-
quate opportunity to review and respond to any program review 
report and relevant materials related to the report before any 
final program review report is issued; 
‘‘(7) review and take into consideration an institution of 
higher education’s response in any final program review report 
or audit determination, and include in the report or determina-
tion— 
‘‘(A) a written statement addressing the institution 
of higher education’s response; 
‘‘(B) a written statement of the basis for such report 
or determination; and 
‘‘(C) a copy of the institution’s response; and 
‘‘(8) maintain and preserve at all times the confidentiality 
of any program review report until the requirements of para-
graphs (6) and (7) are met, and until a final program review 
is issued, other than to the extent required to comply with 
paragraph (5), except that the Secretary shall promptly disclose 
any and all program review reports to the institution of higher 
education under review.’’. 
SEC. 498. REVIEW OF REGULATIONS. 
Section 498B (20 U.S.C. 1099c–2) is amended by striking sub-
section (d). 
PART I—COMPETITIVE LOAN AUCTION PILOT 
PROGRAM 
SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM EVALUATION. 
Section 499 (20 U.S.C. 1099d) is amended— 
(1) in subsection (b)(3)— 
(A) in subparagraph (B)— 
(i) in clause (i), by striking ‘‘and’’ after the semi-
colon; 
(ii) in clause (ii), by striking the period at the 
end of the sentence and inserting ‘‘; and’’; and 
(iii) by adding at the end the following: 
‘‘(iii) a commitment from such eligible lender that, 
if the lender has a winning bid under subparagraph 
(F), the lender will enter into the agreement required 
under subparagraph (G).’’;
H. R. 4137—252 
(B) by striking subparagraph (G) and inserting the 
following: 
‘‘(G) AGREEMENT WITH SECRETARY; COMPLIANCE.— 
‘‘(i) AGREEMENT.—Each eligible lender having a 
winning bid under subparagraph (F) shall enter into 
an agreement with the Secretary under which the 
eligible lender— 
‘‘(I) agrees to originate eligible Federal PLUS 
Loans under this paragraph to each borrower 
who— 
‘‘(aa) seeks an eligible Federal PLUS Loan 
under this paragraph to enable a dependent 
student to attend an institution of higher edu-
cation within the State; 
‘‘(bb) is eligible for an eligible Federal 
PLUS Loan; and 
‘‘(cc) elects to borrow from the eligible 
lender; and 
‘‘(II) agrees to accept a special allowance pay-
ment 
(after 
the 
application 
of 
section 
438(b)(2)(I)(v)) from the Secretary with respect to 
the eligible Federal PLUS Loans originated under 
subclause (I) in the amount proposed in the second 
lowest winning bid described in subparagraph (F) 
for the applicable State auction. 
‘‘(ii) COMPLIANCE.—If an eligible lender with a win-
ning bid under subparagraph (F) fails to enter into 
the agreement required under clause (i), or fails to 
comply with the terms of such agreement, the Sec-
retary may sanction such eligible lender through one 
or more of the following: 
‘‘(I) The assessment of a penalty on such 
eligible lender for any eligible Federal PLUS Loans 
that such eligible lender fails to originate under 
this paragraph in accordance with the agreement 
required under clause (i), in the amount of the 
additional costs (including the amounts of any 
increase in special allowance payments) incurred 
by the Secretary in obtaining another eligible 
lender to originate such eligible Federal PLUS 
Loans. The Secretary shall collect such penalty 
by— 
‘‘(aa) reducing the amount of any pay-
ments otherwise due to such eligible lender 
from the Secretary by the amount of the pen-
alty; or 
‘‘(bb) requesting any other Federal agency 
to reduce the amount of any payments due 
to such eligible lender from such agency by 
the amount of the penalty, in accordance with 
section 3716 of title 31, United States Code. 
‘‘(II) A prohibition of bidding by such lender 
in other auctions under this section. 
‘‘(III) The limitation, suspension, or termi-
nation of such eligible lender’s participation in the 
loan program under part B.
H. R. 4137—253 
‘‘(IV) Any other enforcement action the Sec-
retary is authorized to take under part B.’’; and 
(C) by striking subparagraph (J) and inserting the 
following: 
‘‘(J) GUARANTEE AGAINST LOSSES.—Each eligible Fed-
eral PLUS Loan originated under this paragraph shall 
be insured by a guaranty agency in accordance with part 
B, except that, notwithstanding section 428(b)(1)(G), such 
insurance shall be in an amount equal to 99 percent of 
the unpaid principal and interest due on the loan.’’; and 
(2) by adding at the end the following new subsections: 
‘‘(c) REQUIRED INITIAL EVALUATION.—The Secretary and Sec-
retary of the Treasury shall jointly conduct an evaluation, in con-
sultation with the Office of Management and Budget, the Congres-
sional Budget Office, and the Comptroller General, of the pilot 
program carried out by the Secretary under this section. The evalua-
tion shall determine— 
‘‘(1) the extent of the savings to the Federal Government 
that are generated through the pilot program, compared to 
the cost the Federal Government would have incurred in oper-
ating the PLUS loan program under section 428B in the absence 
of the pilot program; 
‘‘(2) the number of lenders that participated in the pilot 
program, and the extent to which the pilot program generated 
competition among lenders to participate in the auctions under 
the pilot program; 
‘‘(3) the number and volume of loans made under the 
pilot program in each State; 
‘‘(4) the effect of the transition to and operation of the 
pilot program on the ability of— 
‘‘(A) lenders participating in the pilot program to origi-
nate loans made through the pilot program smoothly and 
efficiently; 
‘‘(B) institutions of higher education participating in 
the pilot program to disburse loans made through the pilot 
program smoothly and efficiently; and 
‘‘(C) parents to obtain loans made through the pilot 
program in a timely and efficient manner; 
‘‘(5) the differential impact, if any, of the auction among 
the States, including between rural and non-rural States; and 
‘‘(6) the feasibility of using the mechanism piloted to 
operate the other loan programs under part B of this title. 
‘‘(d) REPORTS.— 
‘‘(1) IN GENERAL.—The Secretary and the Secretary of the 
Treasury shall submit to the authorizing committees— 
‘‘(A) not later than September 1, 2010, a preliminary 
report regarding the findings of the evaluation described 
in subsection (c); 
‘‘(B) not later than September 1, 2012, an interim 
report regarding such findings; and 
‘‘(C) not later than September 1, 2013, a final report 
regarding such findings. 
‘‘(2) CONTENTS.—The Secretary shall include, in each report 
required under subparagraphs (A), (B), and (C) of paragraph 
(1), any recommendations, that are based on the findings of 
the evaluation under subsection (c), for—
H. R. 4137—254 
‘‘(A) improving the operation and administration of 
the auction; and 
‘‘(B) improving the operation and administration of 
other loan programs under part B.’’. 
TITLE V—DEVELOPING INSTITUTIONS 
SEC. 501. AUTHORIZED ACTIVITIES. 
Section 503(b) (20 U.S.C. 1101b(b)) is amended— 
(1) by redesignating paragraphs (6), (7), (8), (9), (10), (11), 
(12), (13), and (14), as paragraphs (7), (8), (9), (10), (11), (12), 
(13), (14), and (16), respectively; 
(2) in paragraph (5), by inserting ‘‘, including innovative 
and customized instruction courses (which may include 
remedial education and English language instruction) designed 
to help retain students and move the students rapidly into 
core courses and through program completion’’ before the period 
at the end; 
(3) by inserting after paragraph (5) the following: 
‘‘(6) Articulation agreements and student support programs 
designed to facilitate the transfer from two-year to four-year 
institutions.’’; 
(4) by inserting after paragraph (14) (as redesignated by 
paragraph (1)) the following: 
‘‘(15) Providing education, counseling services, or financial 
information designed to improve the financial literacy and eco-
nomic literacy of students or the students’ families, especially 
with regard to student indebtedness and student assistance 
programs under title IV.’’; and 
(5) in paragraph (11) (as redesignated by paragraph (1)), 
by striking ‘‘distance learning academic instruction capabilities’’ 
and inserting ‘‘distance education technologies’’. 
SEC. 502. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
AMERICANS. 
(a) AMENDMENTS.—Title V (20 U.S.C. 1101 et seq.) is 
amended— 
(1) by redesignating part B as part C; 
(2) by redesignating sections 511 through 518 as sections 
521 through 528, respectively; and 
(3) by inserting after section 505 the following: 
‘‘PART B—PROMOTING POSTBACCALAUREATE 
OPPORTUNITIES FOR HISPANIC AMERICANS 
‘‘SEC. 511. PURPOSES. 
‘‘The purposes of this part are— 
‘‘(1) to expand postbaccalaureate educational opportunities 
for, and improve the academic attainment of, Hispanic students; 
and 
‘‘(2) to expand the postbaccalaureate academic offerings 
and enhance the program quality in the institutions of higher 
education that are educating the majority of Hispanic college 
students and helping large numbers of Hispanic and low-income 
students complete postsecondary degrees.
H. R. 4137—255 
‘‘SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY. 
‘‘(a) PROGRAM AUTHORIZED.—Subject to the availability of funds 
appropriated to carry out this part, the Secretary shall award 
grants, on a competitive basis, to eligible institutions to enable 
the eligible institutions to carry out the authorized activities 
described in section 513. 
‘‘(b) ELIGIBILITY.—For the purposes of this part, an ‘eligible 
institution’ means an institution of higher education that— 
‘‘(1) is a Hispanic-serving institution (as defined in section 
502); and 
‘‘(2) 
offers 
a 
postbaccalaureate 
certificate 
or 
postbaccalaureate degree granting program. 
‘‘SEC. 513. AUTHORIZED ACTIVITIES. 
‘‘Grants awarded under this part shall be used for one or 
more of the following activities: 
‘‘(1) Purchase, rental, or lease of scientific or laboratory 
equipment for educational purposes, including instructional and 
research purposes. 
‘‘(2) Construction, maintenance, renovation, and improve-
ment of classrooms, libraries, laboratories, and other instruc-
tional facilities, including purchase or rental of telecommuni-
cations technology equipment or services. 
‘‘(3) Purchase of library books, periodicals, technical and 
other scientific journals, microfilm, microfiche, and other edu-
cational materials, including telecommunications program 
materials. 
‘‘(4) Support for low-income postbaccalaureate students 
including outreach, academic support services, mentoring, 
scholarships, fellowships, and other financial assistance to 
permit the enrollment of such students in postbaccalaureate 
certificate and postbaccalaureate degree granting programs. 
‘‘(5) Support of faculty exchanges, faculty development, fac-
ulty research, curriculum development, and academic instruc-
tion. 
‘‘(6) Creating or improving facilities for Internet or other 
distance education technologies, including purchase or rental 
of telecommunications technology equipment or services. 
‘‘(7) Collaboration with other institutions of higher edu-
cation 
to 
expand 
postbaccalaureate 
certificate 
and 
postbaccalaureate degree offerings. 
‘‘(8) Other activities proposed in the application submitted 
pursuant to section 514 that— 
‘‘(A) contribute to carrying out the purposes of this 
part; and 
‘‘(B) are approved by the Secretary as part of the 
review and acceptance of such application. 
‘‘SEC. 514. APPLICATION AND DURATION. 
‘‘(a) APPLICATION.—Any eligible institution may apply for a 
grant under this part by submitting an application to the Secretary 
at such time and in such manner as the Secretary may require. 
Such application shall demonstrate how the grant funds will be 
used to improve postbaccalaureate education opportunities for His-
panic and low-income students. 
‘‘(b) DURATION.—Grants under this part shall be awarded for 
a period not to exceed five years.
H. R. 4137—256 
‘‘(c) LIMITATION.—The Secretary may not award more than 
one grant under this part in any fiscal year to any Hispanic- 
serving institution.’’. 
(b) CONFORMING AMENDMENTS.—Title V (20 U.S.C. 1101 et 
seq.) is amended— 
(1) in section 502— 
(A) in subsection (a)(2)(A)(ii), by striking ‘‘section 
512(b)’’ and inserting ‘‘section 522(b)’’; and 
(B) in subsection (b)(2), by striking ‘‘section 512(a)’’ 
and inserting ‘‘section 522(a)’’; 
(2) in section 521(c)(6) (as redesignated by subsection 
(a)(2)), by striking ‘‘section 516’’ and inserting ‘‘section 526’’; 
and 
(3) in section 526 (as redesignated by subsection (a)(2)), 
by striking ‘‘section 518’’ and inserting ‘‘section 528’’. 
SEC. 503. APPLICATIONS. 
Section 521(b)(1)(A) (as redesignated by section 502(a)(2)) (20 
U.S.C. 1103(b)(1)(A)) is amended by striking ‘‘subsection (b)’’ and 
inserting ‘‘subsection (c)’’. 
SEC. 504. COOPERATIVE ARRANGEMENTS. 
Section 524(a) (as redesignated by section 502(a)(2)) (20 U.S.C. 
1103c(a)) is amended by striking ‘‘section 503’’ and inserting ‘‘sec-
tions 503 and 513’’. 
SEC. 505. AUTHORIZATION OF APPROPRIATIONS. 
Section 528(a) (as redesignated by section 502(a)(2)) (20 U.S.C. 
1103g(a)) is amended to read as follows: 
‘‘(a) AUTHORIZATIONS.— 
‘‘(1) PARTS A AND C.—There are authorized to be appro-
priated to carry out parts A and C $175,000,000 for fiscal 
year 2009 and such sums as may be necessary for each of 
the five succeeding fiscal years. 
‘‘(2) PART B.—There are authorized to be appropriated to 
carry out part B $100,000,000 for fiscal year 2009 and such 
sums as may be necessary for each of the five succeeding 
fiscal years.’’. 
TITLE VI—INTERNATIONAL EDUCATION 
PROGRAMS 
SEC. 601. FINDINGS; PURPOSES; CONSULTATION; SURVEY. 
Section 601 (20 U.S.C. 1121) is amended— 
(1) in the section heading, by striking ‘‘AND PURPOSES’’ 
and inserting ‘‘; PURPOSES; CONSULTATION; SURVEY’’; 
(2) in subsection (a)(3), by striking ‘‘post-Cold War’’; 
(3) in subsection (b)(1)(D), by inserting ‘‘, including through 
linkages with overseas institutions’’ before the semicolon; and 
(4) by adding at the end the following: 
‘‘(c) CONSULTATION.— 
‘‘(1) IN GENERAL.—The Secretary shall, prior to requesting 
applications for funding under this title during each grant 
cycle, consult with and receive recommendations regarding 
national need for expertise in foreign languages and world
H. R. 4137—257 
regions from the head officials of a wide range of Federal 
agencies. 
‘‘(2) CONSIDERING RECOMMENDATIONS; PROVIDING INFORMA-
TION.—The Secretary— 
‘‘(A) may take into account the recommendations 
described in paragraph (1); and 
‘‘(B) shall— 
‘‘(i) provide information collected under paragraph 
(1) when requesting applications for funding under 
this title; and 
‘‘(ii) make available to applicants a list of areas 
identified as areas of national need. 
‘‘(d) SURVEY.—The Secretary shall assist grantees in developing 
a survey to administer to students who have completed programs 
under this title to determine postgraduate employment, education, 
or training. All grantees, where applicable, shall administer such 
survey once every two years and report survey results to the Sec-
retary.’’. 
SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA 
CENTERS AND PROGRAMS. 
Section 602 (20 U.S.C. 1122) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking subparagraph (A) 
and inserting the following: 
‘‘(A) IN GENERAL.—The Secretary is authorized to make 
grants to institutions of higher education or consortia of 
such institutions for the purpose of establishing, strength-
ening, and operating— 
‘‘(i) comprehensive foreign language and area or 
international studies centers and programs; and 
‘‘(ii) a diverse network of undergraduate foreign 
language and area or international studies centers and 
programs.’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘and’’ at the end of subparagraph 
(G); 
(ii) by striking the period at the end of subpara-
graph (H) and inserting a semicolon; and 
(iii) by inserting after subparagraph (H) the fol-
lowing new subparagraphs: 
‘‘(I) supporting instructors of the less commonly taught 
languages; and 
‘‘(J) projects that support students in the science, tech-
nology, engineering, and mathematics fields to achieve for-
eign language proficiency.’’; and 
(C) in paragraph (4)— 
(i) in subparagraph (C)— 
(I) by striking ‘‘Programs of linkage or out-
reach’’ and inserting ‘‘Partnerships or programs 
of linkage and outreach’’; and 
(II) by inserting ‘‘, including Federal or State 
scholarship programs for students in related areas’’ 
before the period at the end; 
(ii) in subparagraph (E)— 
(I) by striking ‘‘foreign area’’ and inserting 
‘‘area studies’’;
H. R. 4137—258 
(II) by striking ‘‘of linkage and outreach’’; and 
(III) by striking ‘‘(C), and (D)’’ and inserting 
‘‘(D), and (E)’’; 
(iii) by redesignating subparagraphs (C) through 
(E) (as so amended) as subparagraphs (D) through 
(F), respectively; and 
(iv) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) Programs of linkage or outreach between or 
among— 
‘‘(i) postsecondary programs or departments in for-
eign language, area studies, or other international 
fields; and 
‘‘(ii) State educational agencies or local educational 
agencies.’’; 
(2) in subsection (b)— 
(A) in the subsection heading, by striking ‘‘GRADUATE’’; 
and 
(B) by striking paragraph (2) and inserting the fol-
lowing: 
‘‘(2) ELIGIBLE STUDENTS.—A student receiving a stipend 
described in paragraph (1) shall be engaged— 
‘‘(A) in an instructional program with stated perform-
ance goals for functional foreign language use or in a 
program developing such performance goals, in combination 
with area studies, international studies, or the inter-
national aspects of a professional studies program; and 
‘‘(B)(i) in the case of an undergraduate student, in 
the intermediate or advanced study of a less commonly 
taught language; or 
‘‘(ii) in the case of a graduate student, in graduate 
study in connection with a program described in subpara-
graph (A), including— 
‘‘(I) predissertation level study; 
‘‘(II) preparation for dissertation research; 
‘‘(III) dissertation research abroad; or 
‘‘(IV) dissertation writing.’’; and 
(3) by striking subsection (d) and inserting the following: 
‘‘(d) ALLOWANCES.— 
‘‘(1) GRADUATE LEVEL RECIPIENTS.—A stipend awarded to 
a graduate level recipient may include allowances for depend-
ents and for travel for research and study in the United States 
and abroad. 
‘‘(2) 
UNDERGRADUATE
LEVEL
RECIPIENTS.—A 
stipend 
awarded to an undergraduate level recipient may include an 
allowance for educational programs in the United States or 
educational programs abroad that— 
‘‘(A) are closely linked to the overall goals of the recipi-
ent’s course of study; and 
‘‘(B) have the purpose of promoting foreign language 
fluency and knowledge of foreign cultures. 
‘‘(e) APPLICATION.—Each institution of higher education or 
consortium of such institutions desiring a grant under this section 
shall submit an application to the Secretary at such time, in such 
manner, and accompanied by such information and assurances as 
the Secretary may require. Each such application shall include—
H. R. 4137—259 
‘‘(1) an explanation of how the activities funded by the 
grant will reflect diverse perspectives and a wide range of 
views and generate debate on world regions and international 
affairs; and 
‘‘(2) a description of how the applicant will encourage 
government service in areas of national need, as identified 
by the Secretary, as well as in areas of need in the education, 
business, and nonprofit sectors.’’. 
SEC. 603. LANGUAGE RESOURCE CENTERS. 
Section 603(c) (20 U.S.C. 1123(c)) is amended by inserting 
‘‘reflect the purposes of this part and’’ after ‘‘shall’’. 
SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN 
LANGUAGE PROGRAMS. 
Section 604 (20 U.S.C. 1124) is amended— 
(1) in subsection (a)(1), by striking ‘‘combinations’’ each 
place it appears and inserting ‘‘consortia’’; 
(2) in subsection (a)(2)— 
(A) in subparagraph (B), by amending clause (ii) to 
read as follows: 
‘‘(ii) pre-service teacher training and in-service 
teacher professional development;’’; 
(B) by redesignating subparagraphs (I) through (M) 
as subparagraphs (J) through (N), respectively; and 
(C) by inserting after subparagraph (H) the following 
new subparagraph: 
‘‘(I) the provision of grants for educational programs 
abroad that— 
‘‘(i) are closely linked to the program’s overall 
goals; and 
‘‘(ii) have the purpose of promoting foreign lan-
guage fluency and knowledge of world regions;’’; 
(3) in subsection (a)(4)(B), by inserting ‘‘that demonstrates 
a need for a waiver or reduction’’ before the period at the 
end; 
(4) in subsection (a)(6), by inserting ‘‘reflect the purposes 
of this part and’’ after ‘‘shall’’; 
(5) in subsection (a)(7)— 
(A) in subparagraph (C), by striking ‘‘and’’ after the 
semicolon; 
(B) in subparagraph (D), by striking the period at 
the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(E) a description of how the applicant will provide 
information to students regarding federally funded scholar-
ship programs in related areas; 
‘‘(F) an explanation of how the activities funded by 
the grant will reflect diverse perspectives and a wide range 
of views and generate debate on world regions and inter-
national affairs, where applicable; and 
‘‘(G) a description of how the applicant will encourage 
service in areas of national need, as identified by the Sec-
retary.’’; and 
(6) in subsection (c)— 
(A) by striking ‘‘(c) FUNDING SUPPORT.—The Secretary’’ 
and inserting the following: 
‘‘(c) FUNDING SUPPORT.—
H. R. 4137—260 
‘‘(1) IN GENERAL.—The Secretary’’; 
(B) by striking ‘‘10’’ and inserting ‘‘20’’; and 
(C) by adding at the end the following: 
‘‘(2) GRANTEES.—Of the total amount of grant funds 
awarded to a grantee under this section, the grantee may 
use not more than ten percent of such funds for the activity 
described in subsection (a)(2)(I).’’. 
SEC. 605. RESEARCH; STUDIES. 
Section 605(a) (20 U.S.C. 1125(a)) is amended— 
(1) in paragraph (8), by striking ‘‘and’’ after the semicolon; 
(2) in paragraph (9), by striking the period and inserting 
a semicolon; and 
(3) by adding at the end the following: 
‘‘(10) evaluation of the extent to which programs assisted 
under this title reflect diverse perspectives and a wide range 
of views and generate debate on world regions and international 
affairs, as described in the grantee’s application; 
‘‘(11) the systematic collection, analysis, and dissemination 
of data that contribute to achieving the purposes of this part; 
and 
‘‘(12) support for programs or activities to make data col-
lected, analyzed, or disseminated under this section publicly 
available and easy to understand.’’. 
SEC. 606. TECHNOLOGICAL INNOVATION AND COOPERATION FOR FOR-
EIGN INFORMATION ACCESS. 
Section 606 (20 U.S.C. 1126) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘or consortia of such institutions or 
libraries’’ and inserting ‘‘or partnerships between such 
institutions and other such institutions, libraries, or non-
profit educational organizations’’; 
(B) by striking ‘‘new electronic technologies’’ and 
inserting ‘‘electronic technologies’’; 
(C) by inserting ‘‘from foreign sources’’ after ‘‘dissemi-
nate information’’; 
(D) by striking ‘‘(a) AUTHORITY.— The Secretary’’ and 
inserting the following: 
‘‘(a) AUTHORITY.— 
‘‘(1) IN GENERAL.—The Secretary’’; and 
(E) by adding at the end the following: 
‘‘(2) GRANT RECIPIENTS.—The Secretary may award grants 
under this section to carry out the activities authorized under 
this section to the following: 
‘‘(A) An institution of higher education. 
‘‘(B) A public or nonprofit private library. 
‘‘(C) A partnership of an institution of higher education 
and one or more of the following: 
‘‘(i) Another institution of higher education. 
‘‘(ii) A library. 
‘‘(iii) A nonprofit educational organization.’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘to facilitate access 
to’’ and inserting ‘‘to acquire, facilitate access to,’’; 
(B) in paragraph (3), by inserting ‘‘or standards for’’ 
after ‘‘means of’’;
H. R. 4137—261 
(C) in paragraph (6), by striking ‘‘and’’ after the semi-
colon; 
(D) in paragraph (7), by striking the period and 
inserting a semicolon; and 
(E) by adding at the end the following: 
‘‘(8) to establish linkages to facilitate carrying out the 
activities described in this subsection between— 
‘‘(A) the institutions of higher education, libraries, and 
partnerships receiving grants under this section; and 
‘‘(B) institutions of higher education, nonprofit edu-
cational organizations, and libraries overseas; and 
‘‘(9) to carry out other activities that the Secretary deter-
mines are consistent with the purpose of the grants awarded 
under this section.’’; and 
(3) in subsection (c), by striking ‘‘institution or consortium’’ 
and inserting ‘‘institution of higher education, library, or part-
nership’’. 
SEC. 607. SELECTION OF CERTAIN GRANT RECIPIENTS. 
Section 607 (20 U.S.C. 1127) is amended— 
(1) in subsection (a), by striking ‘‘evaluates the applications 
for comprehensive and undergraduate language and area cen-
ters and programs.’’ and inserting ‘‘evaluates— 
‘‘(1) the applications for comprehensive foreign language 
and area or international studies centers and programs; and 
‘‘(2) the applications for undergraduate foreign language 
and area or international studies centers and programs.’’; and 
(2) in subsection (b), by adding at the end the following: 
‘‘In keeping with the purposes of this part, the Secretary shall 
take into account the degree to which activities of centers, 
programs, and fellowships at institutions of higher education 
address national needs, and generate information for and 
disseminate information to the public. The Secretary shall also 
consider an applicant’s record of placing students into post-
graduate employment, education, or training in areas of 
national need and an applicant’s stated efforts to increase the 
number of such students that go into such placements.’’. 
SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS. 
Section 609 (20 U.S.C. 1128a) is amended by adding at the 
end the following: 
‘‘(e) APPLICATION.—Each center desiring to receive a grant or 
contract under this section shall submit an application to the Sec-
retary at such time, in such manner, and accompanied by such 
information and assurances as the Secretary may require.’’. 
SEC. 609. AUTHORIZATION OF APPROPRIATIONS FOR INTERNATIONAL 
AND FOREIGN LANGUAGE STUDIES. 
Section 610 (20 U.S.C. 1128b) is amended— 
(1) by striking ‘‘$80,000,000’’ and inserting ‘‘such sums 
as may be necessary’’; 
(2) by striking ‘‘1999’’ and inserting ‘‘2009’’; and 
(3) by striking ‘‘4’’ and inserting ‘‘five’’. 
SEC. 610. CONFORMING AMENDMENTS. 
(a) Sections 603(a), 604(a)(5), and 612 (20 U.S.C. 1123(a), 
1124(a)(5), 1130–1) are each amended by striking ‘‘combinations’’ 
each place it appears and inserting ‘‘consortia’’.
H. R. 4137—262 
(b) Section 612 (20 U.S.C. 1130–1) is further amended by 
striking ‘‘combination’’ each place it appears and inserting ‘‘consor-
tium’’. 
SEC. 611. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS. 
(a) CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.—Sec-
tion 612 (20 U.S.C. 1130–1) is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (1) and (2) as para-
graphs (2) and (3), respectively; and 
(B) by inserting before paragraph (2) (as redesignated 
by subparagraph (A)) the following: 
‘‘(1) PURPOSE.—The purpose of this section is to coordinate 
the programs of the Federal Government in the areas of 
research, education, and training in international business and 
trade competitiveness.’’; 
(2) in subsection (c)(2)—— 
(A) in subparagraph (E), by inserting ‘‘(including those 
that are eligible to receive assistance under part A or 
B of title III or under title V)’’ after ‘‘other institutions 
of higher education’’; 
(B) by striking ‘‘and’’ at the end of subparagraph (E); 
(C) by redesignating subparagraph (F) as subparagraph 
(G); and 
(D) by inserting the following new subparagraph after 
subparagraph (E): 
‘‘(F) programs encouraging the advancement and 
understanding of technology-related disciplines, including 
manufacturing software systems and technology manage-
ment; and’’; and 
(3) in subsection (f)(3), by inserting ‘‘, and that diverse 
perspectives will be made available to students in programs 
under this section’’ before the semicolon. 
(b) EDUCATION AND TRAINING PROGRAMS.—Section 613(c) (20 
U.S.C. 1130a(c)) is amended by adding at the end the following: 
‘‘Each such application shall include an assurance that, where 
applicable, the activities funded by the grant will reflect diverse 
perspectives and a wide range of views on world regions and inter-
national affairs.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 614 (20 U.S.C. 
1130b) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘$11,000,000’’ and inserting ‘‘such sums 
as may be necessary’’; 
(B) by striking ‘‘1999’’ and inserting ‘‘2009’’; and 
(C) by striking ‘‘4’’ and inserting ‘‘five’’; and 
(2) in subsection (b)— 
(A) by striking ‘‘$7,000,000’’ and inserting ‘‘such sums 
as may be necessary’’; 
(B) by striking ‘‘1999’’ and inserting ‘‘2009’’; and 
(C) by striking ‘‘4’’ and inserting ‘‘five’’. 
SEC. 612. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT 
PROGRAM. 
Section 621 (20 U.S.C. 1131) is amended— 
(1) in subsection (a), by striking the second sentence and 
inserting the following: ‘‘The Institute shall conduct a program 
to enhance the international competitiveness of the United
H. R. 4137—263 
States by increasing the participation of underrepresented 
populations in the international service, including private inter-
national voluntary organizations and the foreign service of the 
United States.’’; 
(2) in subsection (b)(1)— 
(A) by striking subparagraph (B); 
(B) by redesignating subparagraph (C) as subpara-
graph (D); and 
(C) by inserting after subparagraph (A) the following: 
‘‘(B) A tribally controlled college or university or Alaska 
Native or Native Hawaiian-serving institution eligible for 
assistance under part A or B of title III, or an institution 
eligible for assistance under title V. 
‘‘(C) An institution of higher education that serves 
substantial numbers of underrepresented minority stu-
dents.’’; and 
(3) in subsection (c)— 
(A) by striking ‘‘(c) APPLICATION.—Each’’ and inserting 
the following: 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—Each’’; and 
(B) by adding at the end the following: 
‘‘(2) CONTENT OF APPLICATION.—Each application submitted 
under paragraph (1) shall include a description of how the 
activities funded by the grant will reflect diverse perspectives 
and a wide range of views and generate debate on world regions 
and international affairs, where applicable.’’. 
SEC. 613. INSTITUTIONAL DEVELOPMENT. 
Section 622 (20 U.S.C. 1131–1) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘Tribally Controlled Colleges or Univer-
sities’’ and inserting ‘‘tribally controlled colleges or univer-
sities’’; and 
(B) by striking ‘‘international affairs programs.’’ and 
inserting ‘‘international affairs, international business, and 
foreign language study programs, including the teaching 
of foreign languages, at such colleges, universities, and 
institutions, respectively, which may include collaboration 
with institutions of higher education that receive funding 
under this title’’; and 
(2) in subsection (c)— 
(A) by striking paragraphs (1) and (3); 
(B) by redesignating paragraphs (2) and (4) as para-
graphs (1) and (2), respectively; and 
(C) in paragraph (1) (as redesignated by subparagraph 
(B)), by inserting ‘‘and’’ after the semicolon. 
SEC. 614. STUDY ABROAD PROGRAM. 
Section 623(a) (20 U.S.C. 1131a(a)) is amended— 
(1) by striking ‘‘as defined in section 322 of this Act’’; 
and 
(2) by striking ‘‘tribally controlled Indian community col-
leges as defined in the Tribally Controlled Community College 
Assistance Act of 1978’’ and inserting ‘‘tribally controlled col-
leges or universities, Alaska Native-serving, Native Hawaiian- 
serving, and Hispanic-serving institutions’’.
H. R. 4137—264 
SEC. 615. ADVANCED DEGREE IN INTERNATIONAL RELATIONS. 
Section 624 (20 U.S.C. 1131b) is amended— 
(1) by striking ‘‘MASTERS’’ in the heading of such section 
and inserting ‘‘ADVANCED’’; 
(2) by striking ‘‘a masters degree in international relations’’ 
and inserting ‘‘an advanced degree in international relations, 
international affairs, international economics, or other academic 
areas related to the Institute fellow’s career objectives’’; and 
(3) by striking ‘‘The masters degree program designed by 
the consortia’’ and inserting ‘‘The advanced degree study pro-
gram shall be designed by the consortia, consistent with the 
fellow’s career objectives, and’’. 
SEC. 616. INTERNSHIPS. 
Section 625 (20 U.S.C. 1131c) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘as defined in section 322 of this Act’’; 
(B) by striking ‘‘tribally controlled Indian community 
colleges as defined in the Tribally Controlled Community 
College Assistance Act of 1978’’ and inserting ‘‘tribally con-
trolled colleges or universities, Alaska Native-serving, 
Native Hawaiian-serving, and Hispanic-serving institu-
tions’’; 
(C) by striking ‘‘an international’’ and inserting ‘‘inter-
national,’’; and 
(D) by striking ‘‘the United States Information Agency’’ 
and inserting ‘‘the Department of State’’; 
(2) in subsection (b)— 
(A) by inserting ‘‘and’’ after the semicolon at the end 
of paragraph (2); 
(B) by striking ‘‘; and’’ at the end of paragraph (3) 
and inserting a period; and 
(C) by striking paragraph (4); and 
(3) in subsection (c)(1)— 
(A) in subparagraph (E), by inserting ‘‘and’’ after the 
semicolon; 
(B) in subparagraph (F), by striking ‘‘; and’’ and 
inserting a period; and 
(C) by striking subparagraph (G). 
SEC. 617. FINANCIAL ASSISTANCE. 
Part C of title VI (20 U.S.C. 1131 et seq.) is further amended— 
(1) by redesignating sections 626, 627, and 628 as sections 
627, 628, and 629, respectively; and 
(2) by inserting after section 625 the following: 
‘‘SEC. 626. FINANCIAL ASSISTANCE. 
‘‘(a) AUTHORITY.—The Institute may provide financial assist-
ance, in the form of summer stipends described in subsection (b) 
and Ralph Bunche scholarship assistance described in subsection 
(c), to low-income students to facilitate the participation of the 
students in the Institute’s programs under this part. 
‘‘(b) SUMMER STIPENDS.— 
‘‘(1) REQUIREMENTS.—A student receiving a summer sti-
pend under this section shall use such stipend to defray the 
student’s cost of participation in a summer institute program 
funded under this part, including the costs of travel, living,
H. R. 4137—265 
and educational expenses necessary for the student’s participa-
tion in such program. 
‘‘(2) AMOUNT.—A summer stipend awarded to a student 
under this section shall not exceed $3,000 per summer. 
‘‘(c) RALPH BUNCHE SCHOLARSHIP.— 
‘‘(1) REQUIREMENTS.—A student receiving a Ralph Bunche 
scholarship under this section— 
‘‘(A) shall be a full-time student at an institution of 
higher education who is accepted into a program funded 
under this part; and 
‘‘(B) shall use such scholarship to pay costs related 
to the cost of attendance, as defined in section 472, at 
the institution of higher education in which the student 
is enrolled. 
‘‘(2) AMOUNT AND DURATION.—A Ralph Bunche scholarship 
awarded to a student under this section shall not exceed $5,000 
per academic year.’’. 
SEC. 618. REPORT. 
Section 627 (as redesignated by section 617(1)) (20 U.S.C. 
1131d) is amended by striking ‘‘annually prepare a report’’ and 
inserting ‘‘prepare a report once every two years’’. 
SEC. 619. GIFTS AND DONATIONS. 
Section 628 (as redesignated by section 617(1)) (20 U.S.C. 
1131e) is amended by striking ‘‘annual report described in section 
626’’ and inserting ‘‘report described in section 627’’. 
SEC. 620. AUTHORIZATION OF APPROPRIATIONS FOR THE INSTITUTE 
FOR INTERNATIONAL PUBLIC POLICY. 
Section 629 (as redesignated by section 617(1)) (20 U.S.C. 1131f) 
is amended— 
(1) by striking ‘‘$10,000,000’’ and inserting ‘‘such sums 
as may be necessary’’; 
(2) by striking ‘‘1999’’ and inserting ‘‘2009’’; and 
(3) by striking ‘‘4 succeeding’’ and inserting ‘‘five suc-
ceeding’’. 
SEC. 621. DEFINITIONS. 
Section 631 (20 U.S.C. 1132) is amended— 
(1) by striking paragraph (7); 
(2) by redesignating paragraphs (2), (3), (4), (5), (6), (8), 
and (9), as paragraphs (7), (4), (8), (2), (10), (6), and (3), respec-
tively; 
(3) in paragraph (2), as redesignated by paragraph (2), 
by striking ‘‘comprehensive language and area center’’ and 
inserting ‘‘comprehensive foreign language and area or inter-
national studies center’’; 
(4) in paragraph (3), as redesignated by paragraph (2), 
by striking the period at the end and inserting a semicolon; 
(5) by inserting after paragraph (4), as redesignated by 
paragraph (2), the following: 
‘‘(5) the term ‘historically Black college and university’ has 
the meaning given the term ‘part B institution’ in section 
322;’’; 
(6) in paragraph (6), as redesignated by paragraph (2), 
by striking ‘‘and’’ after the semicolon;
H. R. 4137—266 
(7) by inserting after paragraph (8), as redesignated by 
paragraph (2), the following: 
‘‘(9) the term ‘tribally controlled college or university’ has 
the meaning given the term in section 2 of the Tribally Con-
trolled Colleges and Universities Assistance Act of 1978 (25 
U.S.C. 1801); and’’; and 
(8) in paragraph (10), as redesignated by paragraph (2)— 
(A) by striking ‘‘undergraduate language and area 
center’’ and inserting ‘‘undergraduate foreign language and 
area or international studies center’’; and 
(B) by striking the semicolon and inserting a period. 
SEC. 622. NEW PROVISIONS. 
Part D of title VI (20 U.S.C. 1132) is amended by adding 
at the end the following: 
‘‘SEC. 632. SPECIAL RULE. 
‘‘The Secretary may waive or reduce the non-Federal share 
required under this title for institutions that— 
‘‘(1) are eligible to receive assistance under part A or B 
of title III or under title V; and 
‘‘(2) have submitted a grant application under this section 
that demonstrates a need for a waiver or reduction, as deter-
mined by the Secretary.’’. 
‘‘SEC. 633. RULE OF CONSTRUCTION. 
‘‘Nothing in this title shall be construed to authorize the Sec-
retary to mandate, direct, or control an institution of higher edu-
cation’s specific instructional content, curriculum, or program of 
instruction. 
‘‘SEC. 634. ASSESSMENT. 
‘‘The Secretary is authorized to assess and ensure compliance 
with all the conditions and terms of grants provided under this 
title. 
‘‘SEC. 635. EVALUATION, OUTREACH, AND INFORMATION. 
‘‘The Secretary may use not more than one percent of the 
funds made available under this title to carry out program evalua-
tion, national outreach, and information dissemination activities 
relating to the programs authorized under this title. 
‘‘SEC. 636. REPORT. 
‘‘The Secretary shall, in consultation and collaboration with 
the Secretary of State, the Secretary of Defense, and the heads 
of other relevant Federal agencies, submit a report once every 
two years that identifies areas of national need in foreign language, 
area, and international studies as such studies relate to govern-
ment, education, business, and nonprofit needs, and a plan to 
address those needs. The report shall be provided to the authorizing 
committees and made available to the public. 
‘‘SEC. 637. SCIENCE AND TECHNOLOGY ADVANCED FOREIGN LAN-
GUAGE EDUCATION GRANT PROGRAM. 
‘‘(a) PURPOSE.—It is the purpose of this section to support 
programs in institutions of higher education that— 
‘‘(1) encourage students to develop— 
‘‘(A) an understanding of science and technology; and 
‘‘(B) foreign language proficiency;
H. R. 4137—267 
‘‘(2) foster future international scientific collaboration; 
‘‘(3) provide for professional development opportunities for 
elementary school and secondary school teachers of critical 
foreign languages to increase the number of highly qualified 
teachers in critical foreign languages; and 
‘‘(4) increase the number of United States students who 
achieve the highest level of proficiency in foreign languages 
critical to the security and competitiveness of the Nation. 
‘‘(b) DEVELOPMENT.—The Secretary shall develop a program 
for the awarding of grants to institutions of higher education that 
develop innovative programs for the teaching of foreign languages, 
which may include the preparation of teachers to teach foreign 
languages. 
‘‘(c) REGULATIONS
AND REQUIREMENTS.—The Secretary shall 
promulgate regulations for the awarding of grants under subsection 
(b). Such regulations may require institutions of higher education 
to use grant funds for, among other things— 
‘‘(1) the development of an on-campus cultural awareness 
program by which students attend classes taught in a foreign 
language and study the science and technology developments 
and practices in a non-English speaking country; 
‘‘(2) immersion programs where students take science or 
technology related course work in a non-English speaking 
country; 
‘‘(3) other programs, such as summer workshops, that 
emphasize the intense study of a foreign language and science 
technology; 
‘‘(4) if applicable, recruiting highly qualified teachers in 
critical foreign languages, and providing professional develop-
ment activities for such teachers at the elementary school and 
secondary school levels; and 
‘‘(5) providing innovative opportunities for students that 
will allow for critical language learning, such as immersion 
environments, intensive study opportunities, internships, and 
distance learning. 
‘‘(d) GRANT DISTRIBUTION.—In distributing grants to institu-
tions of higher education under this section, the Secretary shall 
give priority to— 
‘‘(1) institutions that have programs focusing on curricula 
that combine the study of foreign languages and the study 
of science and technology and produce graduates who have 
both skills; and 
‘‘(2) institutions teaching critical foreign languages. 
‘‘(e) REPORT
ON BEST PRACTICES.—Not later than one year 
after the date of enactment of this section, the Secretary shall— 
‘‘(1) conduct a study to identify the best practices to 
strengthen the role of institutions of higher education that 
receive funding under title III or title V in increasing the 
critical foreign language education efforts in the United States; 
and 
‘‘(2) submit a report on the results of such study to the 
authorizing committees. 
‘‘(f) APPROPRIATIONS AUTHORIZED.—There are authorized to be 
appropriated to carry out this section, such sums as may be nec-
essary for fiscal year 2009 and for each subsequent fiscal year.
H. R. 4137—268 
‘‘SEC. 638. REPORTING BY INSTITUTIONS. 
‘‘(a) APPLICABILITY.—The data requirement in subsection (b) 
shall apply to an institution of higher education that receives funds 
for a center or program under this title if— 
‘‘(1) the amount of the contribution (including cash and 
the fair market value of any property) received from any foreign 
government or from a foreign private sector corporation or 
foundation during any fiscal year exceeds $250,000 in the aggre-
gate; and 
‘‘(2) the aggregate contribution, or a significant part of 
the aggregate contribution, is to be used by a center or program 
receiving funds under this title. 
‘‘(b) DATA REQUIRED.—The Secretary shall require an institu-
tion of higher education referred to in subsection (a) to report 
information listed in subsection (a) to the Secretary consistent 
with the requirements of section 117.’’. 
TITLE VII—GRADUATE AND POSTSEC-
ONDARY IMPROVEMENT PROGRAMS 
SEC. 701. PURPOSE. 
Section 700(1)(B)(i) (20 U.S.C. 1133(1)(B)(i)) is amended by 
inserting ‘‘, including those areas critical to United States national 
and homeland security needs, such as science, technology, 
engineering, and mathematics’’ before the semicolon. 
SEC. 702. JACOB K. JAVITS FELLOWSHIP PROGRAM. 
(a) INTERRUPTIONS
OF
STUDY.—Section 701(c) (20 U.S.C. 
1134(c)) is amended by adding at the end the following new sen-
tence: ‘‘In the case of other exceptional circumstances, such as 
active duty military service or personal or family member illness, 
the institution of higher education may also permit the fellowship 
recipient to interrupt periods of study for the duration of the tour 
of duty (in the case of military service) or for not more than 
12 months (in any other case), but without payment of the stipend.’’. 
(b) ALLOCATION OF FELLOWSHIPS.—Section 702(a)(1) (20 U.S.C. 
1134a(a)(1)) is amended to read as follows: 
‘‘(1) APPOINTMENT.— 
‘‘(A) IN GENERAL.—The Secretary shall appoint a Jacob 
K. Javits Fellows Program Fellowship Board (referred to 
in this subpart as the ‘Board’) consisting of 9 individuals 
representative of both public and private institutions of 
higher education who are especially qualified to serve on 
the Board. 
‘‘(B) QUALIFICATIONS.—In making appointments under 
subparagraph (A), the Secretary shall— 
‘‘(i) give due consideration to the appointment of 
individuals who are highly respected in the academic 
community; 
‘‘(ii) appoint members who represent the various 
geographic regions of the United States; 
‘‘(iii) ensure that individuals appointed to the 
Board are broadly representative of a range of dis-
ciplines in graduate education in arts, humanities, and 
social sciences; and
H. R. 4137—269 
‘‘(iv) ensure that such individuals include rep-
resentatives from institutions that are eligible for one 
or more of the grants under title III or V.’’. 
(c) STIPENDS.— 
(1) Section 703 (20 U.S.C. 1134b) is amended— 
(A) in subsection (a)— 
(i) by striking ‘‘1999–2000’’ and inserting ‘‘2009– 
2010’’; and 
(ii) by striking ‘‘Foundation graduate fellowships’’ 
and inserting ‘‘Foundation Graduate Research Fellow-
ship Program for such academic year’’; and 
(B) in subsection (b), by striking paragraph (1)(A) and 
inserting the following: 
‘‘(1) IN GENERAL.—(A) The Secretary shall (in addition to 
stipends paid to individuals under this subpart) pay to the 
institution of higher education, for each individual awarded 
a fellowship under this subpart at such institution, an institu-
tional allowance. Except as provided in subparagraph (B), such 
allowance shall be, for academic year 2009–2010 and succeeding 
academic years, the same amount as the institutional payment 
made for academic year 2008–2009, adjusted for academic year 
2009–2010 and annually thereafter in accordance with inflation 
as determined by the Department of Labor’s Consumer Price 
Index for the previous calendar year.’’. 
(d) AUTHORIZATION OF APPROPRIATIONS.—Section 705 (20 U.S.C. 
1134d) is amended by striking ‘‘fiscal year 1999’’ and all that 
follows through the period at the end and inserting ‘‘fiscal year 
2009 and each of the five succeeding fiscal years to carry out 
this subpart.’’. 
SEC. 703. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED. 
(a) INSTITUTIONAL ELIGIBILITY.—Section 712 (20 U.S.C. 1135a) 
is amended by striking subsection (b) and inserting the following: 
‘‘(b) DESIGNATION OF AREAS OF NATIONAL NEED.—After con-
sultation with appropriate Federal and nonprofit agencies and 
organizations, including the National Science Foundation, the 
Department of Defense, the Department of Homeland Security, 
the National Academy of Sciences, and the Bureau of Labor Statis-
tics, the Secretary shall designate areas of national need. In making 
such designations, the Secretary shall take into consideration— 
‘‘(1) the extent to which the interest in the area is compel-
ling; 
‘‘(2) the extent to which other Federal programs support 
postbaccalaureate study in the area concerned; 
‘‘(3) an assessment of how the program may achieve the 
most significant impact with available resources; and 
‘‘(4) an assessment of current (as of the time of the designa-
tion) and future professional workforce needs of the United 
States.’’. 
(b) AWARDS TO GRADUATE STUDENTS.—Section 714(b) (20 U.S.C. 
1135c(b)) is amended— 
(1) by striking ‘‘1999–2000’’ and inserting ‘‘2009–2010’’; and 
(2) by striking ‘‘Foundation graduate fellowships’’ and 
inserting ‘‘Foundation Graduate Research Fellowship Program 
for such academic year’’. 
(c) ADDITIONAL
ASSISTANCE.—Section 715(a)(1) (20 U.S.C. 
1135d(a)(1)) is amended—
H. R. 4137—270 
(1) by striking ‘‘1999–2000’’ and inserting ‘‘2009–2010’’; and 
(2) by striking ‘‘1998–1999’’ and inserting ‘‘2008–2009’’. 
(d) AUTHORIZATION OF APPROPRIATIONS.—Section 716 (20 U.S.C. 
1135e) is amended by striking ‘‘fiscal year 1999’’ and all that follows 
through the period at the end and inserting ‘‘fiscal year 2009 
and each of the five succeeding fiscal years to carry out this sub-
part.’’. 
(e) TECHNICAL AMENDMENTS.—Subpart 2 of part A of title 
VII (as amended by this section) (20 U.S.C. 113 et seq.) is further 
amended— 
(1) in section 711(a)(1) (20 U.S.C. 1135(a)(1)), by inserting 
‘‘, including a master’s or doctoral degree,’’ after ‘‘leading to 
a graduate degree’’; 
(2) in section 712(a) (20 U.S.C. 1135a(a)), by inserting 
‘‘, including a master’s or doctoral degree,’’ after ‘‘leading to 
a graduate degree’’; 
(3) in section 713(b)(5)(C) (20 U.S.C. 1135b(b)(5)(C)), by 
inserting ‘‘at the institution’’ before the semicolon; and 
(4) in section 714(c) (20 U.S.C. 1135c(c))— 
(A) by striking ‘‘716(a)’’ and inserting ‘‘715(a)’’; and 
(B) by striking ‘‘714(b)(2)’’ and inserting ‘‘713(b)(2)’’. 
SEC. 704. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY 
PROGRAM. 
(a) PROGRAM AUTHORITY.— 
(1) Section 721(a) (20 U.S.C. 1136(a)) is amended— 
(A) by inserting ‘‘secondary school and’’ after ‘‘disadvan-
taged’’; and 
(B) by inserting ‘‘and admission to law practice’’ before 
the period at the end. 
(b) ELIGIBILITY.—Section 721(b) (20 U.S.C. 1136(b)) is amended 
in the matter preceding paragraph (1), by inserting ‘‘secondary 
school student or’’ before ‘‘college student’’. 
(c) CONTRACT AND GRANT PURPOSES.—Section 721(c) (20 U.S.C. 
1136(c)) is amended— 
(1) in paragraph (1), by inserting ‘‘secondary school and’’ 
before ‘‘college students’’; 
(2) by striking paragraph (2) and inserting the following: 
‘‘(2) to prepare such students for successful completion 
of a baccalaureate degree and for study at accredited law 
schools, and to assist them with the development of analytical 
skills, writing skills, and study methods to enhance the stu-
dents’ success in, and promote the students’ admission to and 
completion of, law school;’’; 
(3) in paragraph (4), by striking ‘‘and’’ after the semicolon; 
and 
(4) by striking paragraph (5) and inserting the following: 
‘‘(5) to motivate and prepare such students— 
‘‘(A) with respect to law school studies and practice 
in low-income communities; and 
‘‘(B) to provide legal services to low-income individuals 
and families; and 
‘‘(6) to award Thurgood Marshall Fellowships to eligible 
law school students— 
‘‘(A) who participated in summer institutes under sub-
section (d)(6) and who are enrolled in an accredited law 
school; or
H. R. 4137—271 
‘‘(B) who have successfully completed a comparable 
summer institute program that is certified by the Council 
on Legal Education Opportunity.’’. 
(d) SERVICES PROVIDED.—Section 721(d) (20 U.S.C. 1136(d)) 
is amended— 
(1) in the matter preceding paragraph (1), by inserting 
‘‘pre-college programs, undergraduate’’ before ‘‘pre-law’’; 
(2) in paragraph (1)— 
(A) in subparagraph (B), by inserting ‘‘law school’’ 
before ‘‘graduation’’; and 
(B) by striking subparagraph (D) and inserting the 
following: 
‘‘(D) pre-college and undergraduate preparatory courses 
in analytical and writing skills, study methods, and course 
selection;’’; 
(3) by redesignating paragraphs (2) through (6) as para-
graphs (3) through (7), respectively; 
(4) by inserting after paragraph (1) the following: 
‘‘(2) summer academic programs for secondary school stu-
dents who have expressed interest in a career in the law;’’; 
and 
(5) in paragraph (7) (as redesignated by paragraph (3)), 
by inserting ‘‘and Associates’’ after ‘‘Thurgood Marshall Fel-
lows’’. 
(e) DURATION.—Section 721(e)(1) (20 U.S.C. 1136(e)(1)) is 
amended by inserting ‘‘, including before and during undergraduate 
study’’ before the semicolon. 
(f) SUBCONTRACTS AND SUBGRANTS.—Section 721(f) (20 U.S.C. 
1136(f)) is amended— 
(1) by inserting ‘‘national and State bar associations,’’ after 
‘‘agencies and organizations,’’; and 
(2) by striking ‘‘and organizations.’’ and inserting ‘‘organiza-
tions, and associations.’’. 
(g) STIPENDS.—Section 721(g) (20 U.S.C. 1136(g)) is amended 
to read as follows: 
‘‘(g) FELLOWSHIPS AND STIPENDS.—The Secretary shall annually 
establish the maximum fellowship to be awarded, and the maximum 
stipend to be paid (including allowances for participant travel and 
for the travel of the dependents of the participant), to Thurgood 
Marshall Fellows or Associates for the period of participation in 
summer institutes, midyear seminars, and bar preparation semi-
nars. A Thurgood Marshall Fellow or Associate may be eligible 
for such a fellowship or stipend only if the Fellow or Associate 
maintains satisfactory academic progress toward the Juris Doctor 
or Bachelor of Laws degree, as determined by the respective institu-
tions (except with respect to a law school graduate enrolled in 
a bar preparation course).’’. 
(h) AUTHORIZATION
OF APPROPRIATIONS.—Section 721(h) (20 
U.S.C. 1136(h)) is amended by striking ‘‘fiscal year 1999’’ and all 
that follows through the period at the end and inserting ‘‘fiscal 
year 2009 and each of the five succeeding fiscal years.’’. 
(i) REPEAL OF CONTINUATION AWARDS.—Subsection (e) of section 
731 (20 U.S.C. 1137(e)) is repealed. 
SEC. 705. SENSE OF CONGRESS. 
It is the sense of Congress that—
H. R. 4137—272 
(1) addressing the under-representation of women and 
minorities in the higher education professoriate will require 
consistent inter-institutional cooperation, data gathering, anal-
ysis, and self-evaluation; and 
(2) institutions eligible for funds under part A of title 
VII of the Higher Education Act of 1965 (20 U.S.C. 1134 et 
seq.) should be encouraged to consider the feasibility and poten-
tial design of an inter-institution monitoring organization 
addressing under-representation by race, ethnicity, and gender 
in postsecondary faculty and administrators. 
SEC. 706. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK 
COLLEGES AND UNIVERSITIES AND PREDOMINANTLY 
BLACK INSTITUTIONS. 
(a) TECHNICAL AMENDMENTS.—Part A of title VII (as amended 
by this title) (20 U.S.C. 1134 et seq.) is further amended— 
(1) by redesignating subpart 4 as subpart 5; 
(2) in the heading of section 731, by striking ‘‘SUBPARTS 
1, 2, AND
3’’ and inserting ‘‘SUBPARTS
THROUGH
4’’; and 
(3) in section 731— 
(A) in subsections (a) and (b), by striking ‘‘subparts 
1, 2, and 3’’ each place the term appears and inserting 
‘‘subparts 1 through 4’’; and 
(B) in subsection (d), by striking ‘‘subpart 1, 2, or 
3’’ and inserting ‘‘subpart 1, 2, 3, or 4’’. 
(b) MASTER’S DEGREE PROGRAMS.—Part A of title VII (as 
amended by this title) (20 U.S.C. 1134 et seq.) is further amended 
by inserting after subpart 3 the following: 
‘‘Subpart 4—Masters Degree Programs at Histori-
cally Black Colleges and Universities and Pre-
dominantly Black Institutions 
‘‘SEC. 723. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK 
COLLEGES AND UNIVERSITIES. 
‘‘(a) GRANT PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—Subject to the availability of funds appro-
priated to carry out this section, the Secretary shall award 
program grants to each of the institutions listed in subsection 
(b)(1) that is determined by the Secretary to be making a 
substantial contribution to graduate education opportunities 
at the masters level in mathematics, engineering, the physical 
or natural sciences, computer science, information technology, 
nursing, allied health, or other scientific disciplines for Black 
Americans. 
‘‘(2) ASSURANCE
OF
NON-FEDERAL
MATCHING
FUNDS.—No 
grant in excess of $1,000,000 may be made under this section 
unless the institution provides assurances that 50 percent of 
the cost of the purposes for which the grant is made will 
be paid from non-Federal sources, except that no institution 
shall be required to match any portion of the first $1,000,000 
of the institution’s award from the Secretary. After funds are 
made available to each eligible institution under the funding 
rules described in subsection (f), the Secretary shall distribute, 
on a pro rata basis, any amounts which were not so made 
available (by reason of the failure of an institution to comply
H. R. 4137—273 
with the matching requirements of this paragraph) among the 
institutions that have complied with such matching require-
ment. 
‘‘(3) MINIMUM AWARD.—Subject to subsections (f) and (g), 
the amount awarded to each eligible institution listed in sub-
section (b)(1) for a fiscal year shall be not less than $500,000. 
‘‘(4) DURATION OF GRANTS.—A grant awarded under this 
section shall be for a period of not more than six years, but 
may be periodically renewed for a period to be determined 
by the Secretary. 
‘‘(b) INSTITUTIONAL ELIGIBILITY.— 
‘‘(1) IN
GENERAL.—Institutions eligible for grants under 
subsection (a) are the following: 
‘‘(A) Albany State University. 
‘‘(B) Alcorn State University. 
‘‘(C) Claflin University. 
‘‘(D) Coppin State University. 
‘‘(E) Elizabeth City State University. 
‘‘(F) Fayetteville State University. 
‘‘(G) Fisk University. 
‘‘(H) Fort Valley State University. 
‘‘(I) Grambling State University. 
‘‘(J) Kentucky State University. 
‘‘(K) Mississippi Valley State University. 
‘‘(L) Savannah State University. 
‘‘(M) South Carolina State University. 
‘‘(N) University of Arkansas, Pine Bluff. 
‘‘(O) Virginia State University. 
‘‘(P) West Virginia Sate University. 
‘‘(Q) Wilberforce University. 
‘‘(R) Winston-Salem State University. 
‘‘(2) QUALIFIED MASTERS DEGREE PROGRAM.— 
‘‘(A) IN GENERAL.—For the purposes of this section, 
the term ‘qualified masters degree program’ means a mas-
ters degree program that provides a program of instruction 
in mathematics, engineering, the physical or natural 
sciences, 
computer 
science, 
information 
technology, 
nursing, allied health, or other scientific disciplines in 
which African Americans are underrepresented and has 
students enrolled in such program of instruction at the 
time of application for a grant under this section. 
‘‘(B) ENROLLMENT
EXCEPTION.—Notwithstanding the 
enrollment requirement contained in subparagraph (A), an 
institution may use an amount equal to not more than 
10 percent of the institution’s grant under this section 
for the development of a new qualified masters degree 
program. 
‘‘(3) INSTITUTIONAL CHOICE.—The president or chancellor 
of the institution may decide which graduate school or qualified 
masters degree program will receive funds under the grant 
in any one fiscal year, if the allocation of funds among the 
schools or programs is delineated in the application for funds 
submitted to the Secretary under this section. 
‘‘(4) ONE GRANT PER INSTITUTION.—The Secretary shall not 
award more than one grant under this section in any fiscal 
year to any institution of higher education.
H. R. 4137—274 
‘‘(c) APPLICATION.—An eligible institution listed in subsection 
(b)(1) desiring a grant under this section shall submit an application 
at such time, in such manner, and containing such information 
as the Secretary may require. The application shall— 
‘‘(1) demonstrate how the grant funds under this section 
will be used to improve graduate educational opportunities 
for Black and low-income students, and lead to greater financial 
independence; and 
‘‘(2) provide, in the case of applications for grants in excess 
of $1,000,000, the assurances required under subsection (a)(2) 
and specify the manner in which the eligible institution is 
going to pay the non-Federal share of the cost of the application. 
‘‘(d) USES OF FUNDS.—A grant under this section may be used 
for— 
‘‘(1) purchase, rental, or lease of scientific or laboratory 
equipment for educational purposes, including instructional and 
research purposes; 
‘‘(2) construction, maintenance, renovation, and improve-
ment in classroom, library, laboratory, and other instructional 
facilities, including purchase or rental of telecommunications 
technology equipment or services; 
‘‘(3) purchase of library books, periodicals, technical and 
other scientific journals, microfilm, microfiche, and other edu-
cational materials, including telecommunications program 
materials; 
‘‘(4) scholarships, fellowships, and other financial assistance 
for needy graduate students to permit the enrollment of the 
students in, and completion of, a masters degree in mathe-
matics, engineering, the physical or natural sciences, computer 
science, information technology, nursing, allied health, or other 
scientific disciplines in which African Americans are underrep-
resented; 
‘‘(5) establishing or improving a development office to 
strengthen and increase contributions from alumni and the 
private sector; 
‘‘(6) assisting in the establishment or maintenance of an 
institutional endowment to facilitate financial independence 
pursuant to section 331; 
‘‘(7) funds and administrative management, and the 
acquisition of equipment, including software, for use in 
strengthening funds management and management information 
systems; 
‘‘(8) acquisition of real property that is adjacent to the 
campus in connection with the construction, renovation, or 
improvement of, or an addition to, campus facilities; 
‘‘(9) education or financial information designed to improve 
the financial literacy and economic literacy of students or the 
students’ families, especially with regard to student indebted-
ness and student assistance programs under title IV; 
‘‘(10) tutoring, counseling, and student service programs 
designed to improve academic success; 
‘‘(11) faculty professional development, faculty exchanges, 
and faculty participation in professional conferences and 
meetings; and 
‘‘(12) other activities proposed in the application submitted 
under subsection (c) that—
H. R. 4137—275 
‘‘(A) contribute to carrying out the purposes of this 
section; and 
‘‘(B) are approved by the Secretary as part of the 
review and acceptance of such application. 
‘‘(e) INTERACTION WITH OTHER GRANT PROGRAMS.—No institu-
tion that is eligible for and receives an award under section 326, 
512, or 724 for a fiscal year shall be eligible to apply for a grant, 
or receive grant funds, under this section for the same fiscal year. 
‘‘(f) FUNDING RULE.—Subject to subsection (g), of the amount 
appropriated to carry out this section for any fiscal year— 
‘‘(1) the first $9,000,000 (or any lesser amount appro-
priated) shall be available only for the purposes of making 
minimum grants under subsection (a)(3) to eligible institutions 
listed in subparagraphs (A) through (R) of subsection (b)(1), 
except that if the amount appropriated is not sufficient to 
pay the minimum grant awards to all such eligible institutions, 
the amount of the minimum award to each such eligible institu-
tion shall be ratably reduced; 
‘‘(2) after the application of paragraph (1), an amount shall 
be available for the purpose of making minimum grants under 
subsection (a)(3) to eligible institutions listed in subsection 
(b)(1) that do not receive a grant under paragraph (1), if any, 
except that if the amount appropriated is not sufficient to 
pay the minimum grant awards to all such eligible institutions, 
the amount of the minimum award to each such eligible institu-
tion shall be ratably reduced; and 
‘‘(3) any amount in excess of $9,000,000 shall be made 
available to each of the eligible institutions identified in sub-
paragraphs (A) through (R) of subsection (b)(1), pursuant to 
a formula developed by the Secretary that uses the following 
elements: 
‘‘(A) The ability of the institution to match Federal 
funds with non-Federal funds. 
‘‘(B) The number of students enrolled in the qualified 
masters degree program at the eligible institution in the 
previous academic year. 
‘‘(C) The average cost of attendance per student, for 
all full-time students enrolled in the qualified masters 
degree program at such institution. 
‘‘(D) The number of students in the previous year who 
received a degree in the qualified masters degree program 
at such institution. 
‘‘(E) The contribution, on a percent basis, of the pro-
grams for which the institution is eligible to receive funds 
under this section to the total number of African Americans 
receiving masters degrees in the disciplines related to the 
programs for the previous year. 
‘‘(g) HOLD HARMLESS RULE.—Notwithstanding paragraphs (2) 
and (3) of subsection (f), no eligible institution identified in sub-
section (b)(1) that receives a grant under this section for fiscal 
year 2009 and that is eligible to receive a grant for a subsequent 
fiscal year shall receive a grant amount for any such subsequent 
fiscal year that is less than the grant amount received for fiscal 
year 2009, unless— 
‘‘(1) the amount appropriated is not sufficient to provide 
such grant amounts to all such institutions and programs that 
received grants under this section for such fiscal year and
H. R. 4137—276 
that are eligible to receive a grant in such subsequent fiscal 
year; or 
‘‘(2) the institution cannot provide sufficient matching funds 
to meet the requirements of this section. 
‘‘SEC. 724. MASTERS DEGREE PROGRAMS AT PREDOMINANTLY BLACK 
INSTITUTIONS. 
‘‘(a) GRANT PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—Subject to the availability of funds appro-
priated to carry out this section, the Secretary shall award 
program grants to each of the institutions listed in subsection 
(b)(1) that is determined by the Secretary to be making a 
substantial contribution to graduate education opportunities 
at the masters level in mathematics, engineering, the physical 
or natural sciences, computer science, information technology, 
nursing, allied health, or other scientific disciplines for Black 
Americans. 
‘‘(2) ASSURANCE
OF
NON-FEDERAL
MATCHING
FUNDS.—No 
grant in excess of $1,000,000 may be made under this section 
unless the institution provides assurances that 50 percent of 
the cost of the purposes for which the grant is made will 
be paid from non-Federal sources, except that no institution 
shall be required to match any portion of the first $1,000,000 
of the institution’s award from the Secretary. After funds are 
made available to each eligible institution under the funding 
rules described in subsection (f), the Secretary shall distribute, 
on a pro rata basis, any amounts which were not so made 
available (by reason of the failure of an institution to comply 
with the matching requirements of this paragraph) among the 
institutions that have complied with such matching require-
ment. 
‘‘(3) MINIMUM AWARD.—Subject to subsections (f) and (g), 
the amount awarded to each eligible institution listed in sub-
section (b)(1) for a fiscal year shall be not less than $500,000. 
‘‘(4) DURATION OF GRANTS.—A grant awarded under this 
section shall be for a period of not more than six years, but 
may be periodically renewed for a period to be determined 
by the Secretary. 
‘‘(b) INSTITUTIONAL ELIGIBILITY.— 
‘‘(1) IN
GENERAL.—Institutions eligible for grants under 
subsection (a) are the following: 
‘‘(A) Chicago State University. 
‘‘(B) Columbia Union College. 
‘‘(C) Long Island University, Brooklyn campus. 
‘‘(D) Robert Morris College. 
‘‘(E) York College, The City University of New York. 
‘‘(2) QUALIFIED MASTERS DEGREE PROGRAM.— 
‘‘(A) IN GENERAL.—For the purposes of this section, 
the term ‘qualified masters degree program’ means a mas-
ters degree program that provides a program of instruction 
in mathematics, engineering, the physical or natural 
sciences, 
computer 
science, 
information 
technology, 
nursing, allied health, or other scientific disciplines in 
which African Americans are underrepresented and has 
students enrolled in such program of instruction at the 
time of application for a grant under this section.
H. R. 4137—277 
‘‘(B) ENROLLMENT
EXCEPTION.—Notwithstanding the 
enrollment requirement contained in subparagraph (A), an 
institution may use an amount equal to not more than 
10 percent of the institution’s grant under this section 
for the development of a new qualified masters degree 
program. 
‘‘(3) INSTITUTIONAL CHOICE.—The president or chancellor 
of the institution may decide which graduate school or qualified 
masters degree program will receive funds under the grant 
in any one fiscal year, if the allocation of funds among the 
schools or programs is delineated in the application for funds 
submitted to the Secretary under this section. 
‘‘(4) ONE GRANT PER INSTITUTION.—The Secretary shall not 
award more than one grant under this section in any fiscal 
year to any institution of higher education. 
‘‘(c) APPLICATION.—An eligible institution listed in subsection 
(b)(1) desiring a grant under this section shall submit an application 
at such time, in such manner, and containing such information 
as the Secretary may require. The application shall— 
‘‘(1) demonstrate how the grant funds under this section 
will be used to improve graduate educational opportunities 
for Black and low-income students and lead to greater financial 
independence; and 
‘‘(2) provide, in the case of applications for grants in excess 
of $1,000,000, the assurances required under subsection (a)(2) 
and specify the manner in which the eligible institution is 
going to pay the non-Federal share of the cost of the application. 
‘‘(d) USES OF FUNDS.—A grant under this section may be used 
for— 
‘‘(1) purchase, rental, or lease of scientific or laboratory 
equipment for educational purposes, including instructional and 
research purposes; 
‘‘(2) construction, maintenance, renovation, and improve-
ment in classroom, library, laboratory, and other instructional 
facilities, including purchase or rental of telecommunications 
technology equipment or services; 
‘‘(3) purchase of library books, periodicals, technical and 
other scientific journals, microfilm, microfiche, and other edu-
cational materials, including telecommunications program 
materials; 
‘‘(4) scholarships, fellowships, and other financial assistance 
for needy graduate students to permit the enrollment of the 
students in, and completion of, a masters degree in mathe-
matics, engineering, the physical or natural sciences, computer 
science, information technology, nursing, allied health, or other 
scientific disciplines in which African Americans are underrep-
resented; 
‘‘(5) establishing or improving a development office to 
strengthen and increase contributions from alumni and the 
private sector; 
‘‘(6) assisting in the establishment or maintenance of an 
institutional endowment to facilitate financial independence 
pursuant to section 331; 
‘‘(7) funds and administrative management, and the 
acquisition of equipment, including software, for use in 
strengthening funds management and management information 
systems;
H. R. 4137—278 
‘‘(8) acquisition of real property that is adjacent to the 
campus in connection with the construction, renovation, or 
improvement of, or an addition to, campus facilities; 
‘‘(9) education or financial information designed to improve 
the financial literacy and economic literacy of students or the 
students’ families, especially with regard to student indebted-
ness and student assistance programs under title IV; 
‘‘(10) tutoring, counseling, and student service programs 
designed to improve academic success; 
‘‘(11) faculty professional development, faculty exchanges, 
and faculty participation in professional conferences and 
meetings; and 
‘‘(12) other activities proposed in the application submitted 
under subsection (c) that— 
‘‘(A) contribute to carrying out the purposes of this 
section; and 
‘‘(B) are approved by the Secretary as part of the 
review and acceptance of such application. 
‘‘(e) INTERACTION WITH OTHER GRANT PROGRAMS.—No institu-
tion that is eligible for and receives an award under section 326, 
512, or 723 for a fiscal year shall be eligible to apply for a grant, 
or receive grant funds, under this section for the same fiscal year. 
‘‘(f) FUNDING RULE.—Subject to subsection (g), of the amount 
appropriated to carry out this section for any fiscal year— 
‘‘(1) the first $2,500,000 (or any lesser amount appro-
priated) shall be available only for the purposes of making 
minimum grants under subsection (a)(3) to eligible institutions 
listed in subparagraphs (A) through (E) of subsection (b)(1), 
except that if the amount appropriated is not sufficient to 
pay the minimum grant awards to all such eligible institutions, 
the amount of the minimum award to each such eligible institu-
tion shall be ratably reduced; 
‘‘(2) after the application of paragraph (1), an amount shall 
be available for the purpose of making minimum grants under 
subsection (a)(3) to eligible institutions described in subsection 
(b)(1) that do not receive a grant under paragraph (1), if any, 
except that if the amount appropriated is not sufficient to 
pay the minimum grant awards to all such eligible institutions, 
the amount of the minimum award to each such eligible institu-
tion shall be ratably reduced; and 
‘‘(3) any amount in excess of $2,500,000 shall be made 
available to each of the eligible institutions identified in sub-
paragraphs (A) through (E) of subsection (b)(1), pursuant to 
a formula developed by the Secretary that uses the following 
elements: 
‘‘(A) The ability of the institution to match Federal 
funds with non-Federal funds. 
‘‘(B) The number of students enrolled in the qualified 
masters degree program at the eligible institution in the 
previous academic year. 
‘‘(C) The average cost of attendance per student, for 
all full-time students enrolled in the qualified masters 
degree program at such institution. 
‘‘(D) The number of students in the previous year who 
received a degree in the qualified masters degree program 
at such institution.
H. R. 4137—279 
‘‘(E) The contribution, on a percent basis, of the pro-
grams for which the institution is eligible to receive funds 
under this section to the total number of African Americans 
receiving masters degrees in the disciplines related to the 
programs for the previous year. 
‘‘(g) HOLD HARMLESS RULE.—Notwithstanding paragraphs (2) 
and (3) of subsection (f), no eligible institution identified in sub-
section (b)(1) that receives a grant under this section for fiscal 
year 2009 and that is eligible to receive a grant in a subsequent 
fiscal year shall receive a grant amount in any such subsequent 
fiscal year that is less than the grant amount received for fiscal 
year 2009, unless— 
‘‘(1) the amount appropriated is not sufficient to provide 
such grant amounts to all such institutions and programs that 
received grants under this section for such fiscal year and 
that are eligible to receive a grant in such subsequent fiscal 
year; or 
‘‘(2) the institution cannot provide sufficient matching funds 
to meet the requirements of this section. 
‘‘SEC. 725. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK COL-
LEGES AND UNIVERSITIES.—There are authorized to be appropriated 
to carry out section 723 such sums as may be necessary for fiscal 
year 2009 and each of the five succeeding fiscal years. 
‘‘(b) MASTERS DEGREE PROGRAMS AT PREDOMINANTLY BLACK 
INSTITUTIONS.—There are authorized to be appropriated to carry 
out section 724 such sums as may be necessary for fiscal year 
2009 and each of the five succeeding fiscal years.’’. 
SEC. 707. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDU-
CATION. 
(a) CONTRACT AND GRANT PURPOSES.—Section 741(a) (20 U.S.C. 
1138(a)) is amended— 
(1) by striking paragraphs (1) through (3) and inserting 
the following: 
‘‘(1) the encouragement of reform and improvement of, and 
innovation in, postsecondary education and the provision of 
educational opportunity for all students, including nontradi-
tional students; 
‘‘(2) the creation of institutions, programs, and joint efforts 
involving paths to career and professional training, including— 
‘‘(A) efforts that provide academic credit for programs; 
and 
‘‘(B) 
combinations 
of 
academic 
and 
experiential 
learning; 
‘‘(3) the establishment and continuation of institutions, pro-
grams, consortia, collaborations, and other joint efforts based 
on communications technology, including those efforts that uti-
lize distance education and technological advancements to edu-
cate and train postsecondary students (including health profes-
sionals serving medically underserved populations);’’; 
(2) by striking paragraph (6) and inserting the following: 
‘‘(6) the introduction of institutional reforms designed to 
expand individual opportunities for entering and reentering 
postsecondary institutions and pursuing programs of postsec-
ondary study tailored to individual needs;’’; 
(3) in paragraph (7), by striking ‘‘and’’ after the semicolon;
H. R. 4137—280 
(4) in paragraph (8), by striking the period at the end 
and inserting a semicolon; and 
(5) by adding at the end the following: 
‘‘(9) the introduction of reforms in remedial education, 
including English language instruction, to customize remedial 
courses to student goals and help students progress rapidly 
from remedial courses into core courses and through postsec-
ondary program completion; 
‘‘(10) the provision of support and assistance to partner-
ships between institutions of higher education and secondary 
schools with a significant population of students identified as 
late-entering limited English proficient students, to establish 
programs that— 
‘‘(A) result in increased secondary school graduation 
rates of limited English proficient students; and 
‘‘(B) increase the number of participating late-entering 
limited English proficient students who pursue postsec-
ondary education; 
‘‘(11) the creation of consortia that join diverse institutions 
of higher education to design and offer curricular and cocur-
ricular interdisciplinary programs at the undergraduate and 
graduate levels, sustained for not less than a 5 year period, 
that— 
‘‘(A) focus on poverty and human capability; and 
‘‘(B) include— 
‘‘(i) a service-learning component; and 
‘‘(ii) the delivery of educational services through 
informational resource centers, summer institutes, 
midyear seminars, and other educational activities that 
stress the effects of poverty and how poverty can be 
alleviated through different career paths; 
‘‘(12) the provision of support and assistance for demonstra-
tion projects to provide comprehensive support services to 
ensure that homeless students, or students who were in foster 
care or were a ward of the court at any time before the age 
of 13, enroll and succeed in postsecondary education, including 
providing housing to such students during periods when 
housing at the institution of higher education is closed or 
generally unavailable to other students; and 
‘‘(13) the support of efforts to work with institutions of 
higher education, and nonprofit organizations, that seek to 
promote cultural diversity in the entertainment media industry, 
including through the training of students in production, mar-
keting, and distribution of culturally relevant content.’’. 
(b) CENTER FOR BEST PRACTICES TO SUPPORT SINGLE PARENT 
STUDENTS.—Section 741 (20 U.S.C. 1138) is further amended by 
adding at the end the following: 
‘‘(c) CENTER FOR BEST PRACTICES TO SUPPORT SINGLE PARENT 
STUDENTS.— 
‘‘(1) PROGRAM AUTHORIZED.—The Secretary is authorized 
to award one grant or contract to an institution of higher 
education to enable such institution to establish and maintain 
a center to study and develop best practices for institutions 
of higher education to support single parents who are also 
students attending such institutions. 
‘‘(2) INSTITUTION
REQUIREMENTS.—The Secretary shall 
award the grant or contract under this subsection to a four-
H. R. 4137—281 
year institution of higher education that has demonstrated 
expertise in the development of programs to assist single par-
ents who are students at institutions of higher education, as 
shown by the institution’s development of a variety of targeted 
services to such students, including on-campus housing, child 
care, counseling, advising, internship opportunities, financial 
aid, and financial aid counseling and assistance. 
‘‘(3) CENTER ACTIVITIES.—The center funded under this sec-
tion shall— 
‘‘(A) assist institutions implementing innovative pro-
grams that support single parents pursuing higher edu-
cation; 
‘‘(B) study and develop an evaluation protocol for such 
programs that includes quantitative and qualitative meth-
odologies; 
‘‘(C) provide appropriate technical assistance regarding 
the replication, evaluation, and continuous improvement 
of such programs; and 
‘‘(D) develop and disseminate best practices for such 
programs.’’. 
(c) PROHIBITION.—Section 741 (20 U.S.C. 1138) is further 
amended by adding after subsection (c) (as added by subsection 
(b) of this section) the following: 
‘‘(d) PROHIBITION.— 
‘‘(1) IN
GENERAL.—No funds made available under this 
part shall be used to provide direct financial assistance in 
the form of grants or scholarships to students who do not 
meet the requirements of section 484(a). 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed to prevent a student who does not meet 
the requirements of section 484(a) from participating in pro-
grams funded under this part.’’. 
(d) PRIORITY.—Section 741 (20 U.S.C. 1138) is further amended 
by adding after subsection (d) (as added by subsection (c) of this 
section) the following: 
‘‘(e) PRIORITY.—In making grants under this part to any institu-
tion of higher education after the date of enactment of the Higher 
Education Opportunity Act, the Secretary may give priority to 
institutions that meet or exceed the most current version of 
ASHRAE/IES Standard 90.1 (as such term is used in section 
342(a)(6) of the Energy Policy and Conservation Act (42 U.S.C. 
6313(a)(6)) for any new facilities construction or major renovation 
of the institution after such date, except that this subsection shall 
not apply with respect to barns or greenhouses or similar structures 
owned by the institution.’’. 
(e) SCHOLARSHIP PROGRAM FOR FAMILY MEMBERS OF VETERANS 
OR MEMBERS OF THE MILITARY.—Section 741 (20 U.S.C. 1138) is 
further amended by adding after subsection (e) (as added by sub-
section (d) of this section) the following: 
‘‘(f) SCHOLARSHIP PROGRAM FOR FAMILY MEMBERS OF VETERANS 
OR MEMBERS OF THE MILITARY.— 
‘‘(1) AUTHORIZATION.—The Secretary shall enter into a con-
tract with a nonprofit organization with demonstrated success 
in carrying out the activities described in this subsection to 
carry out a program to provide postsecondary education scholar-
ships for eligible students.
H. R. 4137—282 
‘‘(2) DEFINITION OF ELIGIBLE STUDENT.—In this subsection, 
the term ‘eligible student’ means an individual who is enrolled 
as a full-time or part-time student at an institution of higher 
education (as defined in section 102) and is— 
‘‘(A) a dependent student who is a child of— 
‘‘(i) an individual who is— 
‘‘(I) serving on active duty during a war or 
other military operation or national emergency (as 
defined in section 481); or 
‘‘(II) performing qualifying National Guard 
duty during a war or other military operation or 
national emergency (as defined in section 481); 
or 
‘‘(ii) a veteran who— 
‘‘(I) served or performed, as described in clause 
(i), since September 11, 2001; and 
‘‘(II) died, or has been disabled, as a result 
of such service or performance; or 
‘‘(B) an independent student who— 
‘‘(i) is a spouse of an individual who is— 
‘‘(I) serving on active duty during a war or 
other military operation or national emergency (as 
defined in section 481); or 
‘‘(II) performing qualifying National Guard 
duty during a war or other military operation or 
national emergency (as defined in section 481); 
‘‘(ii) was (at the time of death of the veteran) 
a spouse of a veteran who— 
‘‘(I) served or performed, as described in clause 
(i), since September 11, 2001; and 
‘‘(II) died as a result of such service or perform-
ance; or 
‘‘(iii) is a spouse of a veteran who— 
‘‘(I) served or performed, as described in clause 
(i), since September 11, 2001; and 
‘‘(II) has been disabled as a result of such 
service or performance. 
‘‘(3) AWARDING OF SCHOLARSHIPS.—Scholarships awarded 
under this subsection shall be awarded based on need with 
priority given to eligible students who are eligible to receive 
Federal Pell Grants under subpart 1 of part A of title IV. 
‘‘(4) MAXIMUM
SCHOLARSHIP
AMOUNT.—The maximum 
scholarship amount awarded to an eligible student under this 
subsection for an award year shall be the lesser of $5,000, 
or the student’s cost of attendance (as defined in section 472). 
‘‘(5) AMOUNTS
FOR
SCHOLARSHIPS.—All of the amounts 
appropriated to carry out this subsection for a fiscal year shall 
be used for scholarships awarded under this subsection, except 
that the nonprofit organization receiving a contract under this 
subsection may use not more than one percent of such amounts 
for the administrative costs of the contract.’’. 
(f) AREAS
OF NATIONAL NEED.—Section 744(c) (20 U.S.C. 
1138c(c)) is amended to read as follows: 
‘‘(c) AREAS OF NATIONAL NEED.—Areas of national need shall 
include, at a minimum, the following:
H. R. 4137—283 
‘‘(1) Institutional restructuring to improve learning and 
promote productivity, efficiency, quality improvement, and cost 
reduction. 
‘‘(2) Improvements in academic instruction and student 
learning, including efforts designed to assess the learning gains 
made by postsecondary students. 
‘‘(3) Articulation between two- and four-year institutions 
of higher education, including developing innovative methods 
for ensuring the successful transfer of students from two- to 
four-year institutions of higher education. 
‘‘(4) Development, evaluation, and dissemination of model 
courses, including model courses that— 
‘‘(A) provide students with a broad and integrated 
knowledge base; 
‘‘(B) include, at a minimum, broad survey courses in 
English literature, American and world history, American 
political institutions, economics, philosophy, college-level 
mathematics, and the natural sciences; and 
‘‘(C) include study of a foreign language that leads 
to reading and writing competency in the foreign language. 
‘‘(5) International cooperation and student exchanges 
among postsecondary educational institutions. 
‘‘(6) Support of centers to incorporate education in quality 
and safety into the preparation of medical and nursing students, 
through grants to medical schools, nursing schools, and osteo-
pathic schools. Such grants shall be used to assist in providing 
courses of instruction that specifically equip students to— 
‘‘(A) understand the causes of, and remedies for, med-
ical error, medically induced patient injuries and complica-
tions, and other defects in medical care; 
‘‘(B) engage effectively in personal and systemic efforts 
to continually reduce medical harm; and 
‘‘(C) improve patient care and outcomes, as rec-
ommended by the Institute of Medicine.’’. 
(g) AUTHORIZATION OF APPROPRIATIONS FOR THE FUND FOR THE 
IMPROVEMENT
OF POSTSECONDARY EDUCATION.—Section 745 (20 
U.S.C. 1138d) is amended by striking ‘‘$30,000,000 for fiscal year 
1999’’ and all that follows through the period at the end and 
inserting ‘‘such sums as may be necessary for fiscal year 2009 
and each of the five succeeding fiscal years.’’. 
(h) TECHNICAL FIPSE AMENDMENTS.—Part B of title VII (20 
U.S.C. 1138 et seq.) is further amended— 
(1) in section 742 (20 U.S.C. 1138a)— 
(A) in subsection (b)— 
(i) by striking ‘‘(b) MEMBERSHIP.—’’ and all that 
follows through ‘‘The Secretary’’ and inserting ‘‘(b) 
MEMBERSHIP.—The Secretary’’; and 
(ii) by striking paragraph (2); 
(B) in subsection (c), by striking ‘‘and the Director’’ 
each place the term appears; and 
(C) in subsection (d), by striking ‘‘Director’’ and 
inserting ‘‘Secretary’’; 
(2) in section 743 (20 U.S.C. 1138b)— 
(A) by striking ‘‘(a) TECHNICAL EMPLOYEES.—’’; and 
(B) by striking subsection (b); and
H. R. 4137—284 
(3) in section 744(a) (20 U.S.C. 1138c(a)), by striking 
‘‘Director’’ each place the term appears and inserting ‘‘Sec-
retary’’. 
SEC. 708. REPEAL OF THE URBAN COMMUNITY SERVICE PROGRAM. 
Part C of title VII (20 U.S.C. 1139 et seq.) is repealed. 
SEC. 709. PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH 
A QUALITY HIGHER EDUCATION. 
Title VII (20 U.S.C. 1133 et seq.) is further amended— 
(1) by redesignating section 771 (20 U.S.C. 1141) as section 
781; and 
(2) by striking part D of title VII (20 U.S.C. 1140 et 
seq.) and inserting the following: 
‘‘PART D—PROGRAMS TO PROVIDE STUDENTS 
WITH DISABILITIES WITH A QUALITY HIGH-
ER EDUCATION 
‘‘SEC. 760. DEFINITIONS. 
‘‘In this part: 
‘‘(1) COMPREHENSIVE TRANSITION AND POSTSECONDARY PRO-
GRAM
FOR
STUDENTS
WITH
INTELLECTUAL
DISABILITIES.—The 
term ‘comprehensive transition and postsecondary program for 
students with intellectual disabilities’ means a degree, certifi-
cate, or nondegree program that is— 
‘‘(A) offered by an institution of higher education; 
‘‘(B) designed to support students with intellectual 
disabilities who are seeking to continue academic, career 
and technical, and independent living instruction at an 
institution of higher education in order to prepare for gain-
ful employment; 
‘‘(C) includes an advising and curriculum structure; 
and 
‘‘(D) requires students with intellectual disabilities to 
participate on not less than a half-time basis, as determined 
by the institution, with such participation focusing on aca-
demic components and occurring through one or more of 
the following activities: 
‘‘(i) Regular enrollment in credit-bearing courses 
with nondisabled students offered by the institution. 
‘‘(ii) Auditing or participating in courses with non-
disabled students offered by the institution for which 
the student does not receive regular academic credit. 
‘‘(iii) Enrollment in noncredit-bearing, nondegree 
courses with nondisabled students. 
‘‘(iv) Participation in internships or work-based 
training in settings with nondisabled individuals. 
‘‘(2) STUDENT WITH AN INTELLECTUAL DISABILITY.—The term 
‘student with an intellectual disability’ means a student— 
‘‘(A) with mental retardation or a cognitive impairment, 
characterized by significant limitations in— 
‘‘(i) intellectual and cognitive functioning; and 
‘‘(ii) adaptive behavior as expressed in conceptual, 
social, and practical adaptive skills; and
H. R. 4137—285 
‘‘(B) who is currently, or was formerly, eligible for 
a free appropriate public education under the Individuals 
with Disabilities Education Act. 
‘‘Subpart 1—Demonstration Projects to Support 
Postsecondary Faculty, Staff, and Administra-
tors in Educating Students With Disabilities 
‘‘SEC. 761. PURPOSE. 
‘‘It is the purpose of this subpart to support model demonstra-
tion projects to provide technical assistance or professional develop-
ment for postsecondary faculty, staff, and administrators in institu-
tions of higher education to enable such faculty, staff, and adminis-
trators to provide students with disabilities with a quality postsec-
ondary education. 
‘‘SEC. 762. GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS 
AUTHORIZED. 
‘‘(a) COMPETITIVE
GRANTS, CONTRACTS, AND
COOPERATIVE 
AGREEMENTS AUTHORIZED.— 
‘‘(1) IN GENERAL.—From amounts appropriated under sec-
tion 765, the Secretary may award grants, contracts, and 
cooperative agreements, on a competitive basis, to institutions 
of higher education to enable the institutions to carry out 
the activities under subsection (b). 
‘‘(2) AWARDS FOR PROFESSIONAL DEVELOPMENT AND TECH-
NICAL
ASSISTANCE.—Not less than two grants, contracts, 
cooperative agreements, or a combination of such awards shall 
be awarded to institutions of higher education that provide 
professional development and technical assistance in order for 
students with learning disabilities to receive a quality postsec-
ondary education. 
‘‘(b) DURATION; ACTIVITIES.— 
‘‘(1) DURATION.—A grant, contract, or cooperative agree-
ment under this subpart shall be awarded for a period of 
three years. 
‘‘(2) AUTHORIZED ACTIVITIES.—A grant, contract, or coopera-
tive agreement awarded under this subpart shall be used to 
carry out one or more of the following activities: 
‘‘(A) 
TEACHING
METHODS
AND
STRATEGIES.—The 
development of innovative, effective, and efficient teaching 
methods and strategies, consistent with the principles of 
universal design for learning, to provide postsecondary fac-
ulty, staff, and administrators with the skills and supports 
necessary to teach and meet the academic and pro-
grammatic needs of students with disabilities, in order 
to improve the retention of such students in, and the 
completion by such students of, postsecondary education. 
Such methods and strategies may include in-service 
training, professional development, customized and general 
technical assistance, workshops, summer institutes, dis-
tance learning, and training in the use of assistive and 
educational technology. 
‘‘(B) EFFECTIVE TRANSITION PRACTICES.—The develop-
ment of innovative and effective teaching methods and 
strategies to provide postsecondary faculty, staff, and