To provide access and assistance to increase college attendance and completion by part-time students.

SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Part-time Student 
Assistance Act''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

SEC. 2. SUPPORT FOR WORKING STUDENTS: INCREASES IN INCOME PROTECTION 
              ALLOWANCES.

    (a) Dependent Students.--Section 475(g)(2) (20 U.S.C. 1087oo(g)(2)) 
is amended by striking subparagraph (D) and inserting the following:
                    ``(D) an income protection allowance of $9,000;''.
    (b) Independent Students Without Dependents Other Than a Spouse.--
Section 476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)) is amended by striking 
clause (iv) and inserting the following:
                            ``(iv) an income protection allowance of 
                        $12,000;''.
    (c) Independent Students With Dependents Other Than a Spouse.--
Section 477(b) (20 U.S.C. 1087qq(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (D) and inserting the 
                following:
                    ``(D) an income protection allowance of $12,000;''; 
                and
                    (B) in subparagraph (E), by striking ``paragraph 
                (5)'' and inserting ``paragraph (4)'';
            (2) by striking paragraph (4); and
            (3) by redesignating paragraph (5) as paragraph (4).
    (d) Conforming Amendments.--Section 478 (20 U.S.C. 1087rr) is 
amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Income Protection Allowance.--For each academic year after 
academic year 1993-1994, the Secretary shall publish in the Federal 
Register a revised table of income protection allowances for the 
purpose of section 475(c)(4). Such revised table shall be developed by 
increasing each of the dollar amounts contained in the table in such 
section by a percentage equal to the estimated percentage increase in 
the Consumer Price Index (as determined by the Secretary) between 
December 1992 and the December next preceding the beginning of such 
academic year, and rounding the result to the nearest $10.''; and
            (2) in subsection (h)--
                    (A) in the first sentence, by striking 
                ``477(b)(5)'' and inserting ``477(b)(4)''; and
                    (B) in the second sentence--
                            (i) by striking ``477(b)(5)(A)'' and 
                        inserting ``477(b)(4)(A)''; and
                            (ii) by striking ``477(b)(5)(B)'' and 
                        inserting ``477(b)(4)(B)''.

SEC. 3. EXEMPTING EARNED INCOME CREDITS FROM THE CALCULATION OF INCOME.

    Section 480(a)(2) (20 U.S.C. 1087vv(a)(2)) is amended by inserting 
``or section 32'' after ``section 25A''.

SEC. 4. CHILD CARE MEANS PARENTS IN SCHOOL.

    (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 
1070e(b)(2)(B)) is amended by striking ``$10,000'' and inserting 
``$30,000''.
    (b) Eligible Institutions.--Section 419N(b)(4) is amended by 
striking ``$350,000'' and inserting ``$250,000''.
    (c) Income Eligibility.--Section 419N(b)(7) is amended by striking 
``who is eligible to receive'' and inserting ``whose income qualifies 
for eligibility for''.
    (d) Publicity.--Section 419N(b) is further amended by adding at the 
end the following new paragraph:
            ``(8) Publicity.--The Secretary shall publicize the 
        availability of grants under this section in appropriate 
        periodicals in addition to publication in the Federal Register, 
        and shall inform appropriate educational organizations of such 
        availability.''.
    (e) Authorization of Appropriations.--Section 419N(g) is amended by 
striking ``$45,000,000 for fiscal year 1999'' and inserting 
``$75,000,000 for fiscal year 2005''.

SEC. 5. YEAR-ROUND PELL GRANTS.

    Section 401 (20 U.S.C. 1070a) is amended by adding at the end the 
following new subsection:
    ``(k) Year-Round Pell Grants.--
            ``(1) Pilot program established.--The Secretary shall 
        establish in accordance with this subsection a year-round Pell 
        grant pilot program. Any institution of higher education that 
        desires to participate in the program under this subsection 
        shall submit an application the Secretary at such time and 
        containing or accompanied by such information and assurances as 
        the Secretary may require. The Secretary may select not more 
        than 200 institutions of higher education for participation in 
        the program. The Secretary shall give preference in such 
        selection to those associate's and bachelor's degree-granting 
        institutions that, as determined under paragraph (3), have the 
        highest completion and graduation rates, respectively.
            ``(2) Program elements.--With respect to students enrolled 
        in institutions participating in the program under this 
        subsection, the Secretary is authorized--
                    ``(A) to award such students two Pell grants in one 
                calendar year to permit such students to accelerating 
                progress towards their degree or certificate objectives 
                by enrolling in academic programs for 12 rather than 9 
                months of the year at participating institutions; and
                    ``(B) to award such two Pell grants to such 
                students in a total amount up to 133 percent of the 
                maximum Pell under subsection (b)(2)(A) that is 
                applicable for the academic year.
            ``(3) Limitation.--The Secretary shall limit the awarding 
        of additional Pell grants under this subsection in a single 
        calendar year to students who attend associate's and bachelor's 
        degree-granting institutions with the following 
        characteristics:
                    ``(A) In the case of an associate's degree-granting 
                institution, the completion rate for the institution of 
                higher education reported by the Integrated 
                Postsecondary Education Data System for the preceding 3 
                academic years has improved by a total of at least 10 
                percent.
                    ``(B) In the case of a bachelor's degree-granting 
                institution--
                            ``(i) the graduation rate for the 
                        institution of higher education reported by the 
                        Integrated Postsecondary Education Data System 
                        for the preceding 5 academic years is at least 
                        50 percent; and
                            ``(ii) the average time of enrollment 
                        required to complete a degree at the 
                        institution among students who enter as 
                        freshman and earn bachelor's degrees is 14 or 
                        fewer quarters, or 9 or fewer semesters or the 
                        equivalent.
            ``(4) Termination; evaluation.--The authority of the 
        Secretary under this subsection shall cease to be effective on 
        October 1, 2009. Not later than October 1, 2008, the Secretary 
        shall conduct an evaluation of the program under this 
        subsection and submit to the Congress a report on the results 
        of such evaluation.''.

SEC. 6. ADDITIONAL FIPSE PROGRAM.

    (a) Purpose.--It is the purpose of this section--
            (1) to allow a demonstration program that is strictly 
        monitored by the Department of Education to test creative 
        measure for improving the availability of higher education for 
        part-time students;
            (2) to provide for increased access for part-time students; 
        and
            (3) to help determine the most effective assistance for 
        part-time students.
    (b) New Program Authorized.--Section 741(a) (20 U.S.C. 1138(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8); and
            (3) by adding at the end the following new paragraph:
            ``(9) creating a program to create a holistic approach to 
        addressing the needs of part-time students at not more than 150 
        associates and bachelors degree-granting institutions that 
        would include grants, leveraging funds from non-Federal 
        sources, comprehensive child care, and better tailored remedial 
        course programs.''.
    (c) Notification and Reports.--Section 743 (20 U.S.C. 1138b) is 
amended by adding at the end the following new subsections:
    ``(c) Procedures and Authorization for Part-Time Student Program.--
            ``(1) Application.--An eligible entity that desires to 
        receive a grant under subsection (b)(9) shall submit an 
        application to the Secretary in such manner and form, 
        containing such information and assurances, as the Secretary 
        may reasonably require.
            ``(2) Selection procedures.--The Secretary shall by 
        regulation develop a formal procedure for the submissions of 
        applications for grants under subsection (b)(9) and shall 
        publish in the Federal Register an announcement of that 
        procedure and the availability of funds under such part.
            ``(3) Evaluation.--The Secretary shall evaluate the program 
        authorized under subsection (b)(9) on an annual basis. Such 
        evaluations specifically shall review --
                    ``(A) the extent to which the institution has met 
                the goals set forth in its application to the 
                Secretary;
                    ``(B) the number of students participating in the 
                programs offered, including the progress of such 
                students toward recognized certificates or degrees; and
                    ``(C) what changes, if any, in law would facilitate 
                both the participation of part-time students in higher 
                education and increased graduation rates amongst these 
                students.
            ``(4) Separate authorizations of appropriations.--There are 
        authorized to be appropriated to carry out the program 
        authorized by subsection (b)(9), $100,000,000 for fiscal year 
        2004 and such sums as may be necessary for each of the five 
        succeeding fiscal years.''.

Summary: Part-time Student Assistance Act - Amends the Higher Education Act of 1965 to provide access and assistance to increase college attendance and completion by part-time students.

Exempts from student aid need formula determinations earnings up to: (1) $9,000 by dependent students; (2) $12,000 by independent students with no dependents (other than spouse); and (3) $12,000 by independent students with dependents (other than spouse). Provides for a formula for a revised table of income protection allowances. Exempts earned income credits from the calculation of income.

Revises and expands a program (child care access means parents in school) which provides grants to institutions of higher education for child care assistance for low-income students.

Directs the Secretary of Education to establish a year-round Pell grant pilot program.

Authorizes a demonstration program to create a holistic approach to addressing the needs of part-time students. Allows such program to: (1) be at up to 150 associates and bachelors degree-granting institutions; and (2) include grants, leveraging funds from non-Federal sources, comprehensive child care, and better tailored remedial course programs.