graph (2), the sum of the amounts of any 
grants received by such recipient under this sec-
tion shall, upon a determination of such a fail-
ure or refusal in such service obligation, be 
treated as a Federal Direct Unsubsidized Staf-
ford Loan under part D of title IV of the High-
er Education Act of 1965, and shall be subject 
to repayment, together with interest thereon ac-
cruing from the date of the grant award, in ac-
cordance with terms and conditions specified by 
the Assistant Secretary, in consultation with 
the Secretary of Education, in regulations 
under this section. 
‘‘(B) RECONSIDERATION OF CONVERSION 
DECISIONS.— 
‘‘(i) REQUEST
TO
RECONSIDER.—In 
any case where the Assistant Secretary has 
determined that an eligible recipient who 
receives a grant under this section has 
failed or refused to comply with the service 
obligation in the agreement under para-
graph (2) and has converted, in consulta-
tion with the Secretary of Education, the 
grant into a Federal Direct Unsubsidized 
Stafford Loan in accordance with subpara-
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graph (A) (including cases in which such 
loans have been fully or partially paid), 
such eligible recipient may request that the 
Assistant Secretary reconsider such initial 
determination and may submit additional 
information to demonstrate satisfaction of 
such service obligation. Upon receipt of 
such a request, the Assistant Secretary 
shall reconsider the determination in ac-
cordance with this subparagraph not later 
than 90 days after the date that such re-
quest was received. 
‘‘(ii) RECONSIDERATION.—If, in re-
considering an initial determination under 
clause (i), the Assistant Secretary deter-
mines that the reason for such determina-
tion was the failure of the eligible recipient 
who received a grant under this section to 
timely submit a certification required 
under paragraph (2)(A)(ii), an error or 
processing delay by the Assistant Sec-
retary, a change to the covered schools 
considered eligible for fulfillment of the 
service obligation, an eligible recipient who 
received a grant under this section having 
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previously requested to have such grant 
under this section converted to a loan, or 
another valid reason determined by the As-
sistant Secretary, and that such recipient 
has, as of the date of the reconsideration, 
demonstrated that such recipient did meet, 
or is meeting, the service obligation in the 
agreement under paragraph (2), the As-
sistant Secretary, in consultation with the 
Secretary of Education, shall— 
‘‘(I) discharge the Federal Direct 
Unsubsidized Stafford Loan and rein-
state the grant under this section to 
such recipient; 
‘‘(II) discharge any interest or 
fees that may have accumulated dur-
ing the period that the grant was con-
verted to a Federal Direct Unsub-
sidized Stafford Loan; 
‘‘(III) if such recipient has other 
loans under part D of title IV of the 
Higher Education Act of 1965, apply 
any payments made for the Federal 
Direct Unsubsidized Stafford Loan 
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during such period to those other 
loans; 
‘‘(IV) if such recipient does not 
have other loans under such part D, 
reimburse such recipient for any 
amounts paid on the Federal Direct 
Unsubsidized Stafford Loan during 
such period; 
‘‘(V) request that consumer re-
porting agencies remove any negative 
item of information from a consumer 
report due to the conversion of the 
grant under this section to a loan; and 
‘‘(VI) use any additional informa-
tion provided under clause (i) to de-
termine the progress such recipient 
has made in meeting the service obli-
gation. 
‘‘(iii) EXTENSION OF TIME TO COM-
PLETE SERVICE OBLIGATION.—In the case 
of an eligible recipient who receives a grant 
under this section whose grant under this 
section was reinstated in accordance with 
clause (ii), the Assistant Secretary shall, 
upon such reinstatement— 
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‘‘(I) extend the time remaining 
for such recipient to fulfill the service 
obligation described in paragraph 
(2)(A) to a period of time equal to— 
‘‘(aa) 8 years; minus 
‘‘(bb) the number of full or 
partial academic years of service 
as a school psychologist that such 
recipient completed prior to the 
reconversion of the loan to a 
grant under clause (ii), including 
any years of qualifying service as 
a school psychologist completed 
during the period when the grant 
under this section was in loan 
status; and 
‘‘(II) treat any full or partial 
academic years of service as a school 
psychologist described in subclause 
(I)(bb) as years that count toward the 
service obligation of such recipient 
(regardless of whether the grant funds 
under this section were in grant or 
loan status) if such service otherwise 
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meet the requirements of this sub-
section. 
‘‘(4) 
ADDITIONAL
ADMINISTRATIVE
PROVI-
SIONS.— 
‘‘(A) EXTENUATING
CIRCUMSTANCES.— 
The Assistant Secretary shall establish, by reg-
ulation, categories of extenuating circumstances 
under which an eligible recipient who receives a 
grant under this section who is unable to fulfill 
all or part of the service obligation of such re-
cipient may be excused from fulfilling that por-
tion of the service obligation. 
‘‘(B) 
COMMUNICATION
WITH
RECIPI-
ENTS.—The Assistant Secretary shall notify 
each eligible recipient who receives a grant 
under this section not less than once per cal-
endar year regarding how to submit the certifi-
cation 
of 
employment 
under 
paragraph 
(2)(A)(ii) and the recommendations and re-
quirements for submitting such certification 
under subparagraph (D) of this paragraph. 
‘‘(C) COVERED SCHOOLS.—The Assistant 
Secretary shall maintain and annually update a 
list of covered schools and shall make such list 
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of the required submission deadlines de-
scribed in this subparagraph. 
‘‘(iv) ADJUSTMENT OF DEADLINE.— 
The Assistant Secretary shall adjust the 
submission deadline described in clause (ii) 
to account for any extension of the period 
of the service obligation. 
‘‘(v) 
ALTERNATIVE
TO
CERTIFI-
CATION.—The Assistant Secretary shall 
provide an alternative to the certification 
of employment described in paragraph 
(2)(A)(ii) for any eligible recipient who re-
ceives a grant under this section who can-
not obtain such required certification of 
employment from the chief administrative 
officer of the covered school of such recipi-
ent because such recipient can demonstrate 
such covered school is no longer in exist-
ence or such covered school refuses to co-
operate. 
‘‘(c) PROGRAM PERIOD; AUTHORIZATION OF APPRO-
PRIATIONS.—Beginning on January 1 of the year imme-
diately following the year of the date of the enactment of 
this section, there are authorized to be appropriated to 
the Assistant Secretary to carry out this section such sums 
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as may be necessary to provide grants to each eligible ap-
plicant in accordance with this section. 
‘‘(d) PROGRAM REPORT.—Not later than 2 years 
after the date described in subsection (c), and every 2 
years thereafter, the Assistant Secretary shall prepare and 
submit to the Committee on Health, Education, Labor, 
and Pensions of the Senate and the Committee on Edu-
cation and Workforce of the House of Representatives a 
report on grants under this section with respect to the 
covered schools and students served by eligible recipients 
who receive grants under this section. Such report shall 
take into consideration information related to— 
‘‘(1) the number of such recipients; 
‘‘(2) the degrees obtained by each such recipi-
ent; 
‘‘(3) the location, including the covered school, 
local educational agency, and State, where each such 
recipient is completing or has completed the service 
obligation agreed to under subsection (b)(2); 
‘‘(4) the duration of service of each such recipi-
ent; 
‘‘(5) any change in the ratio of school psycholo-
gists to students at each such covered school; and 
‘‘(6) data about any change, beginning on the 
date that each such recipient begins to carry out the 
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service obligation of such recipient at a covered 
school, in student well-being at such covered school, 
including, to the maximum extent practicable, any 
such change directly attributable to the presence of 
such recipient at such covered school. 
‘‘(e) DEFINITIONS.—For the purposes of this section: 
‘‘(1) COVERED
SCHOOL.—The term ‘covered 
school’ means a public or other nonprofit private ele-
mentary school or secondary school, which, for the 
purpose of that year— 
‘‘(A) has been determined by the Assistant 
Secretary (pursuant to regulations of the As-
sistant Secretary and after consultation with 
the State educational agency of the State in 
which the school is located) to be a school in 
which the ratio of school psychologists to stu-
dents is lesser than 1 to 500; and 
‘‘(B) is in the school district of a local edu-
cational agency which is eligible in such year 
for assistance pursuant to part A of title I of 
the Elementary and Secondary Education Act 
of 1965. 
‘‘(2) ELIGIBLE INSTITUTION.—The term ‘eligi-
ble institution’ means an institution of higher edu-
cation, as defined in section 102 of the Higher Edu-
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cation Act of 1965, that the Assistant Secretary de-
termines— 
‘‘(A) provides high quality preparation and 
professional development services for school 
psychology, including extensive clinical experi-
ence as a part of pre-service preparation; 
‘‘(B) is financially responsible; 
‘‘(C) imposes coursework and other re-
quirements that enable or prepare, as applica-
ble, a student, upon graduation from such insti-
tution, to— 
‘‘(i) receive a school psychologist cre-
dential, if such credential is required, and 
begin serving as a school psychologist; or 
‘‘(ii) enter into a graduate or profes-
sional 
degree 
program 
that 
imposes 
coursework and other requirements that 
enable or prepare, as applicable, such stu-
dent, upon graduation, to receive such cre-
dential, if required, and begin such service; 
and 
‘‘(D) provides supervision and support 
services to school psychologists, or assistance in 
the provision of such services, including men-
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toring focused on developing effective skills and 
strategies related to school psychology. 
‘‘(3) ELIGIBLE RECIPIENT.—The term ‘eligible 
recipient’ means an applicant under subsection 
(b)(1) that the Assistant Secretary has determined 
is eligible to receive a grant under this section. 
‘‘(4) ESEA TERMS.—The terms ‘elementary 
school’, 
‘local 
educational 
agency’, 
‘secondary 
school’, and ‘State educational agency’ have the 
meanings given such terms, respectively, in section 
8101 of the Elementary and Secondary Education 
Act of 1965. 
‘‘(5) NONPROFIT; STATE.—The terms ‘non-
profit’ and ‘State’ have the meanings given such 
terms, respectively, in section 103 of the Higher 
Education Act of 1965. 
‘‘(6) POST-BACCALAUREATE.—The term ‘post- 
baccalaureate’ means a program of instruction for 
individuals who have completed a baccalaureate de-
gree, that does not lead to a graduate degree, and 
that consists of courses required by a State in order 
for an eligible recipient to receive a school psycholo-
gist credential, except that such term shall not in-
clude any program of instruction offered by an eligi-
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ble institution that offers a baccalaureate degree in 
school psychology. 
‘‘(7) SCHOOL
PSYCHOLOGIST
CREDENTIAL.— 
The term ‘school psychologist credential’ means a 
professional certification or licensing credential that 
is required for employment as a school psychologist 
in an elementary school or secondary school in a 
State.’’. 
Æ 
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