College Cost Reduction and Access Act

Bill: 110-hr-2669
Sponsor: Rep. Miller, George [D-CA-7]
Introduced: 2007-06-12 in the House
Policy area: Education
Subjects: Administrative fees
Aid to dependent children
Alaska
Armed Forces and National Security
Armed forces reserves
Asian American ethnic groups
Auctions
Authorization
Black colleges
Capital punishment
Cash welfare block grants
Charities
Child welfare
Collection of accounts
College administration
College costs
Commerce
Consumer education
Cost control
Cost of living adjustments
Crime and Law Enforcement
Cuba
Data banks
Debt
Debtor and creditor
Department of Education
Disabled
Distance education
Dropouts
Earned income tax credit
Economics and Public Finance
Education of the disadvantaged
Education savings accounts
Educational research
Educational technology
Elementary and secondary education
Elementary education
Emergency Management
Environmental Protection
Families
Federal aid to education
Federal-state relations
Federally-guaranteed loans
Fees
Finance and Financial Sector
Financial services
Fire fighters
Foster home care
Government Operations and Politics
Government lending
Government paperwork
Government publicity
Graduate education
Guardian and ward
Hawaiians
Health
Higher education
Hispanic Americans
Homeless
Housing and Community Development
Income tax
Indexing (Economic policy)
Indian education
Indigenous peoples
Interest rates
Intergovernmental fiscal relations
Labor and Employment
Language and languages
Law
Law enforcement officers
Loan defaults
Mathematics
Medical education
Mentoring
Military pay
Military personnel
Minorities
Minority education
National Guard
National service
Native Americans
Nonprofit organizations
Nurses
Nursing education
Old age, survivors and disability insurance
Pacific Islanders
Paramedical personnel
Personal budgets
Police
Pregnant women
Preschool education
Prisoners of war
Public Lands and Natural Resources
Public defenders
Public health personnel
Public prosecutors
Reading
Retired military personnel
Scholarships
Science, Technology, Communications
Scientific education
Secondary education
Social Welfare
Social work
Special education
Speech disorders
Student employment
Student loan funds
Subsidies
Sustainable development
Taxation
Teacher education
Teacher supply and demand
Teachers
Terrorism
Veterans' education
Women

Summary:
action_date: 2007-06-12
text: 
College Cost Reduction Act of 2007 - Amends the Higher Education Act of 1965 (HEA) to alter the Pell Grant program by: (1) increasing the maximum Pell grant; (2) removing the tuition sensitivity provision reducing the Pell Grant available to students attending low cost schools; (3) allowing year-round Pell grants; (4) increasing students' Pell grant eligibility by increasing their income protection allowance; (5) altering the formula for determining whether a student qualifies for a simplified means test and zero-expected family contributions; and (6) excluding certain income and assets from student need determinations.
 
Alters HEA student loan programs by: (1) cutting the interest rate charged undergraduate student borrowers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs; (2) increasing limits on federally-insured loans; (3) reducing special allowance payments to lenders; (4) eliminating exceptional performer status for lenders; (5) reducing the lender insurance percentage; (6) reducing the percentage of defaulted loan collections a guaranty agency may retain; (7) changing the formula for determining the account maintenance fees paid to guaranty agencies; (8) increasing the loan fee charged certain lenders; and (9) requiring lenders and guaranty agencies to provide institutions of higher education (IHEs) and third-party servicers with student loan information to prevent loan defaults.
 
Provides student loan forgiveness to borrowers who serve in areas of national need as early childhood educators, nurses, foreign language specialists, librarians, certain highly qualified teachers, child welfare workers, speech language pathologists, National Service participants, and public sector employees.
 
Forgives the balance due on DLs by borrowers who have been public sector employees for 10 years and made 120 income contingent payments on such loans.
 
 Makes FFEL and DL repayments by student borrowers income contingent. Allows such borrowers to have their loans forgiven after 20 years of payments. Redefines economic hardship to include borrowers whose earnings do not exceed 150% of the poverty line. Eliminates deferral limits on FFELs, DLs, and Perkins loans. Includes such deferrals in maximum payment periods.
 
Withholds specified HEA funding from states that reduce their current higher education funding.
 
Requires that the College Opportunity On-Line (COOL) website be redesigned to include additional college affordability information, including a school's placement on affordability alert status due to its costs increasing at twice the consumer price index over a specified period of time. 
 
Provides IHEs with additional funding to raise Pell grant amounts by specified percentages if they keep, or guarantee to keep, their tuition increases at no more than the increase in the Higher Education Price Index (HEPI).
 
Provides cooperative education grants to IHEs that keep tuition increases at or below increases in the HEPI, to increase the availability and quality of programs offering students alternating or parallel periods of academic study and related employment.
 
Establishes a TEACH Grant program providing tuition assistance to undergraduate and graduate students who commit to teaching a high-need subject in a high-need school for four years.
 
Awards competitive grants to minority serving IHEs to establish centers of excellence that improve the preparation and support of highly-qualified teachers.
 
Establishes a College Access Challenge Grant program providing matching grants to philanthropic organizations for financial aid, mentoring, and outreach services to increase the number of needy students from underserved populations who enter and complete college.

action_date: 2007-06-25
text: 
College Cost Reduction Act of 2007 - 
Title I: Investing in Student Aid - Part A: Increasing the Purchasing Power of Pell Grants
 - (Sec. 101) Amends the Higher Education Act of 1965 (HEA) to reauthorize the Pell Grant program through FY2013. Authorizes and appropriates additional funding for the program for FY2008-FY2017 to increase the amount of the maximum Pell grant for which a student is eligible by $200 for each of the award years 2008-2009 and 2009-2010, $300 for award year 2010-2011, and $500 for each subsequent award year. Increases the authorized maximum Pell grant to $7,600 for academic year 2008-2009 and by $1,000 increments each academic year thereafter until it stands at $11,600 for academic year 2012-2013. 
 
Repeals the formula for calculation of an individual Pell grant which includes, in part, the sum of the student's tuition. (Thus eliminates the &quot;tuition sensitivity provision&quot; which currently prohibits maximum Pell grant awards to students attending low-tuition institutions of higher education even if their income is low enough to otherwise qualify for the maximum award.)
 
Allows, beginning in academic year 2009-2010, students who attend year-round institutions of higher education (IHEs) to receive up to two Pell grants in the same academic year.
 
Makes part-time students, and students whose prior enrollment in undergraduate education was part of a secondary school program of study, eligible for Academic Competitiveness grants.
 
(Sec. 102) Increases students' Pell grant eligibility by increasing, by academic year 2012-2013, the income protection allowance to: (1) $6,000 for a dependent student; (2) $8,090 for an independent student without dependents, other than perhaps a spouse, who is single, separated, or married and both spouses are enrolled; and (3) $12,960 for an independent student without dependents other than a spouse if only one of the couple is enrolled. Provides for cost-of-living adjustments to such amounts.
 
Increases the income protection allowances in the table for independent students with dependents other than a spouse by 10% for academic year 2009-2010, and for each of the three succeeding academic years.
 
(Sec. 103) Makes dependent students eligible for a simplified means test if one of their parents is a dislocated worker or they or their parents received a means-tested federal benefit within the past two years. (Currently, one year.) Makes independent students eligible for a simplified means test if they or their spouses are dislocated workers and they have received a means-tested federal benefit within the past two years. 
 
Raises, from $20,000 to $30,000, the zero-expected family contributions income limit which allows students in families with incomes below such limit to qualify for the maximum Pell grant award. Provides for cost-of-living adjustments to such amount.
 
Includes the dislocated worker status of a family member within the special circumstances giving financial aid administrators extra discretion in making need analyses.
 
(Sec. 104) Excludes welfare benefits, Earned Income Tax Credits, federal special fuels tax credits, untaxed foreign income, untaxed Social Security benefits, and the additional federal child tax credit from the income and benefits which are considered untaxed and thereby included in student need analyses. 
 
Excludes untaxed distributions from qualified education benefits as income or assets in computing expected family contributions in student aid calculations. Treats a qualified education benefit as: (1) the parent's asset when considering the family contribution for a dependent student; and (2) the student's asset when considering such contribution for independent students. Excludes from need analyses any untaxed distributions from state prepaid tuition plans or Coverdell education savings accounts.
 

Part B: Making Student Loans More Affordable
 - (Sec. 111) Phases-in cuts in the interest rate charged undergraduate student borrowers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs, thereby reducing such rate from 6.8% in July 2006 to 3.4% in July 2012.
 
(Sec. 112) Increases FFEL annual loan limits for third and forth year students from $5,500 to $7,500. Increases aggregate limits from $23,000 to $30,500 for undergraduate students and from $65,500 to 73,000 for graduate students.
 
(Sec. 113) Reduces special allowance payments made to FFEL lenders to compensate them for the difference between FFEL interest rates and market rates. 
 
(Sec. 114) Eliminates exceptional performer status for lenders, servicers, and guaranty agencies, which rewards such entities for high due diligence in FFEL collection.
 
(Sec. 115) Limits FFEL lender insurance to 95% of the unpaid balance of such loans. (Currently, 97% of a FFEL issued after June 2006 is federally-insured.)
 
(Sec. 116) Reduces from 23% to 16% the percentage of defaulted FFEL collections a guaranty agency is allowed to retain, beginning in October 2007.
 
(Sec. 117) Alters, beginning with FY2008, the calculation of the account maintenance fee paid to FFEL guarantors so that it is based on the number of accounts lenders have, rather than the original principal amount of active loans they have guaranteed.
 
(Sec. 118) Increases the loan fee charged FFEL lenders from .5% to 1% of the principal amount of loans disbursed after October 2007, but eliminates the fee for small lenders, nonprofit organizations, and state and local governments. Prohibits its collection from borrowers. 
 
(Sec. 119) Requires lenders, secondary market holders, and guaranty agencies to provide, free of charge and in a timely and effective manner, any student loan information IHEs and their third-party servicers request to prevent loan defaults.
 
(Sec. 120) Directs the Secretary of Education (Secretary) and the Secretary of the Treasury to conduct a planning study of alternative market-based mechanisms for setting FFEL lenders' yields, which is to be followed by a limited two-year pilot program testing the mechanisms which the study found most promising in ensuring loan availability, minimizing administrative complexity, and reducing federal costs. Allows the Secretary to implement on a program-wide basis the auction-based system proven to satisfy such criteria, after an independent evaluation of the pilot program by the General Accountability Office (GAO).
 

Part C: Rewarding Service in Repayment
 - (Sec. 131) Provides student loan forgiveness to borrowers under the FFEL or DL programs who serve full-time in areas of national need as: (1) early childhood educators in low-income communities; (2) nurses; (3) critical foreign language specialists who teach in elementary or secondary schools or use such knowledge as federal employees; (4) librarians; (5) highly qualified teachers who teach bilingual education or who teach in schools that enroll a high proportion of disadvantaged students; (6) child welfare workers; (7) speech language pathologists in elementary or secondary schools; (8) National Service participants; and (9) public sector employees. 
 
Provides up to $1,000 of student loan forgiveness for each year of service, but limits forgiveness to $5,000 in the aggregate.
 
(Sec. 132) Directs the Secretary to forgive the balance due on DLs and direct consolidation loans by individuals who have been public sector employees for 10 years and have made 120 income contingent payments on such loans. 
 
(Sec. 133) Caps FFEL and DL repayments by student borrowers at no more than 15% of the amount a borrower's and the borrower's spouse's adjusted gross income exceeds 150% of the poverty line. Requires the Secretary to cancel or repay such loans after 20 years.
 
(Sec. 134) Eliminates the three-year limit on the deferral of FFELs, DLs, and Perkins loans when borrowers are suffering economic hardship, redefined to include borrowers whose full-time earnings do not exceed 150% of the poverty line. Includes such deferral periods, as well as the months a borrower's FFEL or DL payments are capped, in calculating the maximum period an income contingent repayment plan may be in effect for a non-defaulting borrower.
 
(Sec.137) Allows veterans who were called to active duty when enrolled in, or within six months of being enrolled in, an IHE to receive a 13-month student loan deferment. Cancels such deferment upon the borrower's reenrollment in school.
 
(Sec. 138) Expresses the sense of Congress that the Secretary and the Secretary of the Treasury work together with the GAO to establish a system whereby borrowers could convert their federal student loans to income contingent direct IDEA loans, payments for which would be made using the income tax withholding system. Requires the Secretaries to report their progress to Congress within one year of this Act's enactment.
 

Part D: Sustaining the Perkins Loan Program
 - (Sec. 141) Appropriates an additional $100 million for each of FY2008-FY2012 for contributions to Perkins Loan funds.
 

Title II: Reducing the Cost of College
 - (Sec. 201) Withholds Leveraging Educational Assistance Partnership funds from states that reduce their current higher education funding. Allows the Secretary to waive this sanction if the state faces exceptional or uncontrollable circumstances.
 
(Sec. 202) Directs the Commissioner of Education Statistics, in redesigning the College Opportunity On-Line (COOL) website, to identify and include the data of greatest importance to prospective and enrolled students, and their families. Requires that such website also provide comparable information and a sorting function that permits users to customize their search for and comparison of IHEs.
 
Requires the Secretary to publish, on such website, additional college affordability information comparing the change in each school's student costs with the change in the Higher Education Price Index (HEPI) over the most recent three-year period.
 
Requires a school whose prices increase at more than twice the percentage change in the HEPI over such time period to report an explanation to the Secretary. Places schools on affordability alert status if their prices continue to exceed the HEPI by such amount for two additional years. Requires publication of the explanatory reports and affordability alerts on the COOL website.
 
(Sec. 203) Provides IHEs with additional funding through FY2012 to raise Pell grant amounts by 25% if they keep their net tuition price increases at no more than the increase in the HEPI. 
 
Gives bonus amounts to IHEs, equal to 25% of the Academic Competitiveness grants an IHE's students receive, if they guarantee to keep their net tuition price increases at no more than the increase in the HEPI. Requires that they distribute such bonus amounts to Pell grant recipients.
 
Gives priority for such incentives and rewards to IHEs with the lowest annual net tuition price increases.
 
Makes $15 million available for each of FY2008-FY2012 for such incentives and rewards. 
 
Requires IHEs whose net tuition price increase exceeds the HEPI increase for an academic year to report to the Secretary regarding the causes of their tuition increase and strategies to contain costs.
 
(Sec. 204) Establishes a new HEA title VIII, Cooperative Education Rewards for Institutions that Restrain Tuition Increases.
 
Establishes a five-year cooperative education grant program providing matching grants to IHEs to increase the availability and quality of programs offering students alternating or parallel periods of academic study and remunerative employment related to their academic or occupational objectives.
 
Reduces, in yearly 15% increments, the federal share of cooperative education grants from 85% in the grant's first year to 25% in the fifth and final year of the grant.
 
Authorizes the Secretary to use a portion of program funds for: (1) demonstration projects to determine the feasibility or value of innovation methods of cooperative education; and (2) cooperative education training and resource centers.
 
Makes $15 million available for each of FY2008-FY2012 to carry out title VIII.
 

Title III: Ensuring a Highly Qualified Teacher in Every Classroom - Part A: TEACH Grants
 - (Sec. 301) Establishes a TEACH Grant program providing $4,000 of tuition assistance each academic year to high-achieving undergraduate and graduate students who commit to teaching a high-need subject in a high-need elementary or secondary school for four years. Includes mathematics, science, foreign languages, bilingual education, special education, and reading among such high-need subjects.
 
Provides $500 Bonus TEACH Grants each academic year to students who are eligible for TEACH Grants and enroll in a Teacher Preparation program that is implemented by an IHE in partnership with high-need LEAs and offers a baccalaureate degree and concurrent teacher certification in science, technology fields, special education, foreign language, engineering, and English language instruction.
 
Sets aggregate limits on an individual's receipt of TEACH Grants and Bonus TEACH Grants.
 

Part B: Centers of Excellence
 - (Sec. 311) Awards competitive grants to minority-serving IHEs to establish centers of excellence that improve the preparation and support of highly-qualified teachers by: (1) implementing reforms within teacher preparation programs to ensure that teachers are able to understand scientifically-based research and use advanced technology effectively; (2) providing sustained and high-quality preservice clinical experience; (3) developing and implementing initiatives to promote the retention of such teachers; (4) awarding financial need scholarships for participation in teacher preparation programs; and (5) disseminating information on effective teacher preparation practices.
 
Makes $50 million available from FY2008-FY2012 for centers of excellence.
 

Title IV: Leveraging Funds to Increase College Access - Part A: Strengthening Historically Black Colleges and Universities and Minority-Serving Institutions
 - (Sec. 401) Makes $100 million for each of FY2008-FY2012 available to minority-serving institutions, with: (1) 40% going to Hispanic-serving institutions; (2) 40% going to Historically Black Colleges and Universities and Predominantly Black institutions; and (3) 20% going to Tribal Colleges and Universities, Alaska Native and Native Hawaiian-serving institutions, and Asian and Pacific Islander-serving institutions.
 
Defines Predominantly Black institutions as accredited institutions serving at least 1,000 undergraduate students at least: (1) 50% of whom are pursuing a bachelor's or associate's degree; (2) 40% of whom are Black Americans; and (3) 50% of whom are low-income or first-generation college students. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.
 
Defines Asian and Pacific Islander-serving institutions as accredited institutions that have a significant enrollment of financially needy students and an enrollment of undergraduate students that are at least 10% Asian American and Pacific Islander students from subgroups with low levels of college degree attainment. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.
 
Requires that funds for Predominantly Black institutions be available for competitive grants for programs in science, technology, engineering, mathematics, health education, international affairs, teacher preparation, or to improve the educational outcomes of African American males.
 
Requires that funds for the other institutions be used for certain capacity-building activities. Sets spending priorities for Hispanic-serving institutions and Historically Black Colleges and Universities that include education in disciplines in which minorities and low-income students are underrepresented and, in the case of Hispanic-serving institutions, the development of model transfer and articulation agreements. 
 

Part B: College Access Challenge Grants
 - (Sec. 411) Establishes a College Access Challenge Grant program providing matching grants to philanthropic organizations that are members of eligible consortia for financial aid, mentoring, and outreach services to increase the number of needy students from underserved populations who enter and complete college.
 
Makes $300 million available for the program from FY2008-FY2012.
 

Part C: Upward Bound
 - (Sec. 412) Directs the Secretary to rescind the absolute priority for Upward Bound program participant selection and evaluation, established by regulation.
 
Authorizes and appropriates $30 million for each of FY2008-FY2011 to restore funding to all Upward Bound projects that: (1) received funding in FY2006 but not in FY2007; and (2) have a grant score above 70.
 

Title V: Additional Provisions
 - (Sec. 501) Directs the Secretary to enter into an agreement with the National Academy of Sciences (NAS) to evaluate the quality of distance education programs as compared to campus-based education programs at IHEs.
 

 
(Sec. 502) Expresses the sense of the Committee on Education and Labor that there is a need for sustainable economic and environmental practices and rigorous sustainability academic programs on college and university campuses to encourage increased public awareness of the need to &quot;go green.&quot;

action_date: 2007-07-11
text: 
College Cost Reduction Act of 2007 -
 Title I: Investing in Student Aid - Part A: Increasing the Purchasing Power of Pell Grants
 - (Sec. 101) Amends the Higher Education Act of 1965 (HEA) to reauthorize the Pell Grant program through FY2013. Authorizes and appropriates additional funding for the program for FY2008-FY2017 to increase the amount of the maximum Pell grant for which a student is eligible by $200 for each of the award years 2008-2009 and 2009-2010, $300 for award year 2010-2011, and $500 for each subsequent award year. Increases the authorized maximum Pell grant to $7,600 for academic year 2008-2009 and by $1,000 increments each academic year thereafter until it stands at $11,600 for academic year 2012-2013. 
 
Repeals the formula for calculation of an individual Pell grant which includes, in part, the sum of the student's tuition. (Thus eliminates the &quot;tuition sensitivity provision&quot; which currently prohibits maximum Pell grant awards to students attending low-tuition institutions of higher education even if their income is low enough to otherwise qualify for the maximum award.) Makes $5 million available until October 2008 to cover the costs of eliminating tuition sensitivity.
 
Allows, beginning in academic year 2009-2010, students who attend year-round institutions of higher education (IHEs) to receive up to two Pell grants in the same academic year.
 
Makes part-time students and students whose prior enrollment in undergraduate education was part of a secondary school program of study, eligible for Academic Competitiveness grants.
 
(Sec. 102) Increases students' Pell grant eligibility by increasing the income protection allowance to: (1) $3,750 for a dependent student; (2) $6,690 for an independent student without dependents, other than perhaps a spouse, who is single, separated, or married and both spouses are enrolled; and (3) $10,720 for an independent student without dependents other than a spouse if only one of the couple is enrolled. Provides for cost-of-living adjustments to such amounts, but for each of academic years 2010-2011 and 2011-2012 increases such income protection allowances by 10%.
 
Increases the income protection allowances in the table for independent students with dependents other than a spouse by 10% for academic year 2009-2010, and for each of the three succeeding academic years.
 
(Sec. 103) Makes dependent students eligible for a simplified means test if one of their parents is a dislocated worker or they or their parents received a means-tested federal benefit within the past two years. (Currently, one year.) Makes independent students eligible for a simplified means test if they or their spouses are dislocated workers and they have received a means-tested federal benefit within the past two years. 
 
Raises, from $20,000 to $30,000, the zero-expected family contributions income limit which allows students in families with incomes below such limit to qualify for the maximum Pell grant award. Provides for cost-of-living adjustments to such amount.
 
Includes the dislocated worker status of a family member within the special circumstances giving financial aid administrators extra discretion in making need analyses.
 
(Sec. 104) Excludes welfare benefits, Earned Income Tax Credits, federal special fuels tax credits, untaxed foreign income, untaxed Social Security benefits, and the additional federal child tax credit from the income and benefits which are considered untaxed and thereby included in student need analyses. 
 
Excludes untaxed distributions from qualified education benefits as income or assets in computing expected family contributions in student aid calculations. Treats a qualified education benefit as: (1) the parent's asset when considering the family contribution for a dependent student; and (2) the student's asset when considering such contribution for independent students. Excludes from need analyses any untaxed distributions from state prepaid tuition plans or Coverdell education savings accounts.
 

Part B: Making Student Loans More Affordable
 - (Sec. 111) Phases-in cuts in the interest rate charged undergraduate student borrowers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs, thereby reducing such rate from 6.8% in July 2006 to 3.4% in July 2012.
 
(Sec. 112) Increases FFEL annual loan limits for third and forth year students from $5,500 to $7,500. Increases aggregate limits from $23,000 to $30,500 for undergraduate students and from $65,500 to 73,000 for graduate students.
 
(Sec. 113) Reduces special allowance payments made to FFEL lenders to compensate them for the difference between FFEL interest rates and market rates. 
 
(Sec. 114) Eliminates exceptional performer status for lenders, servicers, and guaranty agencies, which rewards such entities for high due diligence in FFEL collection.
 
(Sec. 115) Limits FFEL lender insurance to 95% of the unpaid balance of such loans. (Currently, 97% of a FFEL issued after June 2006 is federally-insured.) 
 
(Sec. 116) Reduces from 23% to 16% the percentage of defaulted FFEL collections a guaranty agency is allowed to retain, beginning in October 2007.
 
(Sec. 117) Lowers the account maintenance fee paid to FFEL guarantors from .10% to .06% of the original principal amount of active loans they have guaranteed.
 
(Sec. 118) Increases the loan fee charged FFEL lenders from .5% to 1% of the principal amount of loans disbursed after October 2007, but eliminates the fee for small lenders, nonprofit organizations, and state and local governments. Prohibits its collection from borrowers. 
 
(Sec. 119) Directs the Secretary of Education (Secretary) and the Secretary of the Treasury to conduct a planning study of alternative market-based mechanisms for setting FFEL lenders' yields, which is to be followed by a limited two year pilot program testing the mechanisms which the study found most promising in ensuring loan availability, minimizing administrative complexity, and reducing federal costs. Allows the Secretary to implement on a program-wide basis the auction-based system proven to satisfy such criteria, after an independent evaluation of the pilot program by the General Accountability Office (GAO) .
 
(Sec. 120) Directs the Secretary to pay to each FFEL guaranty agency, for deposit into their Operating Fund, a monthly delinquency prevention fee equal to 0.0055% of the original principal amount of loans insured by the agency, other than loans in in-school, grace period, or delinquency status.
 
Sets a minimum aggregate amount of loan processing and origination fees to be paid by the Secretary to FFEL guaranty agencies in any fiscal year.
 

Part C: Rewarding Service in Repayment
 - (Sec. 131) Provides student loan forgiveness to borrowers under the FFEL or DL programs who serve full-time in areas of national need as: (1) early childhood educators in low-income communities; (2) nurses; (3) critical foreign language specialists who teach in elementary or secondary schools or use such knowledge as federal employees; (4) librarians; (5) highly qualified teachers who teach bilingual education or who teach in schools that enroll a high proportion of disadvantaged students; (6) child welfare workers; (7) speech language pathologists in elementary or secondary schools; (8) National Service participants; (9) school counselors in elementary and secondary schools that enroll a high proportion of disadvantaged students; and (10) public sector employees. 
 
Provides up to $1,000 of student loan forgiveness for each year of service, but limits forgiveness to $5,000 in the aggregate.
 
(Sec. 132) Directs the Secretary to forgive the balance due on DLs and direct consolidation loans by individuals who have been public sector employees for 10 years and have made 120 income contingent payments on such loans. 
 
(Sec. 133) Caps FFEL and DL repayments by student borrowers at no more than 15% of the amount a borrower's and the borrower's spouse's adjusted gross income exceeds 150% of the poverty line. Requires the Secretary to cancel or repay such loans after 20 years.
 
(Sec. 134) Eliminates the three-year limit on the deferral of FFELs, DLs, and Perkins loans when borrowers are suffering economic hardship, redefined to include borrowers whose full-time earnings do not exceed 150% of the poverty line. Includes such deferral periods, as well as the months a borrower's FFEL or DL payments are capped, in calculating the maximum period an income contingent repayment plan may be in effect for a non-defaulting borrower.
 
(Sec. 137) Allows veterans who were called to active duty when enrolled in, or within six months of being enrolled in, an IHE to receive a 13 month student loan deferment. Cancels such deferment upon the borrower's reenrollment in school.
 

Part D: Sustaining the Perkins Loan Program
 - (Sec. 141) Appropriates an additional $100 million for each of FY2008-FY2012 for contributions to Perkins Loan funds.
 

Title II: Reducing the Cost of College - 
 (Sec. 201) Directs the Commissioner of Education Statistics, in redesigning the College Opportunity On-Line (COOL) website, to identify and include the data of greatest importance to prospective and enrolled students, and their families. Requires such website also to provide comparable information and a sorting function that permits users to customize their search for and comparison of IHEs.
 
Requires the Secretary to publish, on such website, additional college affordability information that includes sticker prices for the five most recent academic years and an IHE's net tuition (tuition and fees, minus student grant amounts) for the most recent academic year for which data are available.
 
Requires a school whose prices increase at more than twice the percentage change in the HEPI over a three-year period to report an explanation to the Secretary. Places schools on affordability alert status if their prices continue to exceed the HEPI by such amount for two additional years. Requires publication of such explanatory reports on the COOL website.
 
(Sec. 202) Establishes a new HEA title VIII, Restraining Tuition Increases.
 
Establishes a five-year cooperative education grant program providing matching grants to IHEs to increase the availability and quality of programs offering students alternating or parallel periods of academic study and remunerative employment related to their academic or occupational objectives.
 
Reduces, by yearly 15% increments, the federal share of cooperative education grants from 85% in the grant's first year to 25% in the fifth and final year of the grant.
 
Authorizes the Secretary to use a portion of program funds for: (1) demonstration projects to determine the feasibility or value of innovation methods of cooperative education; and (2) cooperative education training and resource centers.
 
Makes $15 million available for each of FY2008-FY2012 to carry out title VIII.
 
Directs the Secretary to award competitive grants to IHEs that, for academic year 2008-2009 or any succeeding academic year, have an annual net tuition increase for the most recent academic year that is no more than the percentage change in the HEPI for such academic year. Requires IHEs to distribute such funds as need-based grant aid to students who are eligible for Pell grants.
 
 Provides bonus amounts to IHEs that guarantee to keep their tuition increases at no more than the increase in the HEPI. Requires IHEs to provide such bonus amounts to students who are eligible for Pell grants. 
 
Requires IHEs whose net tuition increase exceeds the HEPI increase for an academic year to report to the Secretary and Congress regarding the causes of such increase and voluntary actions they are taking to reduce net tuition.
 
Gives grant and bonus priority to IHEs with the lowest annual net tuition increases.
 
Makes $15 million available for each of FY2008-FY2012 for such grants and bonus amounts.
 

Title III: Ensuring a Highly Qualified Teacher in Every Classroom - Part A: TEACH Grants
 - (Sec. 301) Establishes a TEACH Grant program providing $4,000 of tuition assistance each academic year to high-achieving undergraduate, post-baccalaureate, and graduate students who commit to teaching a high-need subject in a high-need elementary or secondary school for four years. Includes mathematics, science, foreign languages, bilingual education, special education, and reading among such high-need subjects.
 
Provides $500 Bonus TEACH Grants each academic year to students who are eligible for TEACH Grants and enroll in a Teacher Preparation program that is implemented by an IHE in partnership with high-need LEAs and schools and offers a baccalaureate degree, post-baccalaureate teacher credential, or graduate degree and concurrent teacher certification in science, technology fields, special education, foreign language, engineering, and English language instruction.
 
Sets aggregate limits on an individual's receipt of TEACH Grants and Bonus TEACH Grants.
 

Part B: Centers of Excellence
 - (Sec. 311) Awards competitive grants to minority-serving IHEs to establish centers of excellence that improve the preparation and support of highly-qualified teachers by: (1) implementing reforms within teacher preparation programs to ensure that teachers are able to understand scientifically-based research and use advanced technology effectively; (2) providing sustained and high-quality preservice clinical experience; (3) developing and implementing initiatives to promote the retention of such teachers; (4) awarding financial need scholarships for participation in teacher preparation programs; and (5) disseminating information on effective teacher preparation practices.
 
Makes $50 million available from FY2008-FY2012 for centers of excellence.
 

Title IV: Leveraging Funds to Increase College Access - Part A: Strengthening Historically Black Colleges and Universities and Minority-Serving Institutions
 - (Sec. 401) Makes $100 million for each of FY2008-FY2012 available to minority-serving institutions, with: (1) 40% going to Hispanic-serving institutions; (2) 40% going to Historically Black Colleges and Universities and Predominantly Black institutions; and (3) 20% going to Tribal Colleges and Universities, Alaska Native and Native Hawaiian-serving institutions, and Asian and Pacific Islander-serving institutions.
 
Defines Predominantly Black institutions as accredited institutions serving at least 1,000 undergraduate students at least: (1) 50% of whom are pursuing a bachelor's or associate's degree; (2) 40% of whom are Black Americans; and (3) 50% of whom are low-income or first-generation college students. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.
 
Defines Asian and Pacific Islander-serving institutions as accredited institutions that have a significant enrollment of financially needy students and an enrollment of undergraduate students that are at least 10% Asian American and Pacific Islander students. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.
 
Requires that funds for Predominantly Black institutions be available for competitive grants for programs in science, technology, engineering, mathematics, health education, international affairs, teacher preparation, or to improve the educational outcomes of African American males.
 
Requires that funds for the other institutions be used for certain capacity-building activities. Sets spending priorities for Hispanic-serving institutions and Historically Black Colleges and Universities that include education in disciplines in which minorities and low-income students are underrepresented and, in the case of Hispanic-serving institutions, the development of model transfer and articulation agreements. 
 

Part B: College Access Challenge Grants
 - (Sec. 411) Establishes a College Access Challenge Grant program providing matching grants to philanthropic organizations that are members of eligible consortia for financial aid, mentoring, and outreach services to increase the number of needy students from underserved populations who enter and complete college.
 
Makes $300 million available for the program from FY2008-FY2012.
 

Part C: Upward Bound
 - (Sec. 412) Directs the Secretary to rescind the absolute priority for Upward Bound program participant selection and evaluation, established by regulation.
 
Authorizes and appropriates $57 million for each of FY2008-FY2011 to provide assistance to all Upward Bound projects that did not receive assistance in FY2007 and have a grant score above 70.

action_date: 2007-07-20
text: 
Higher Education Access Act of 2007 - 
Title I: Grants to Students in Attendance at Institutions of Higher Education
 - (Sec. 101) Amends the Higher Education Act of 1965 (HEA) to repeal the formula for calculating an individual Pell grant which includes, in part, the sum of the student's tuition. (Thus eliminates the &quot;tuition sensitivity provision&quot; which currently prohibits maximum Pell grant awards to students attending low-tuition institutions of higher education (IHEs) even if their income is low enough otherwise to qualify for the maximum award.) Authorizes and appropriates $5 million for FY2008 to cover the costs of eliminating tuition sensitivity.
 
(Sec. 102) Establishes a Promise grant program awarding grants to students with the greatest need who are also eligible for a Pell grant. Authorizes and appropriates funding for the program through FY2017.
 

Title II: Student Loan Benefits, Terms, and Conditions
 - (Sec. 201) Extends from three to six years the limit on the deferral of Federal Family Education Loans (FFELs), Direct Loans (DLs), and Perkins loans (PLs) when borrowers are suffering economic hardship. Makes such extension effective in July 2008 and applicable only to new borrowers of such loans before October 2012.
 
(Sec. 202) Eliminates the three-year deferment limit under the FFEL, DL, and PL programs for borrowers who are serving on active duty or performing qualifying National Guard duty during a war or other military operation or national emergency. Extends such deferment for 180 days after demobilization. Removes language limiting such deferments to loans for which the first disbursement was made after June 2001. 
 
(Sec. 203) Replaces the income-sensitive FFEL and income-contingent DL repayment plans with a new income-based repayment plan: (1) capping borrowers' loan repayments at 15% of any amount by which their adjusted gross income exceeds 150% of the poverty line; and (2) under which any loan balance not repaid after a maximum of 25 years in repayment or economic hardship deferment will be forgiven. Makes this repayment plan available to borrowers who first borrow before October 2012, but unavailable to borrowers of PLUS loans on behalf of a dependent students.
 

Title III: Federal Family Education Loan Program
 - (Sec. 301) Limits FFEL lender insurance to 97% of the unpaid balance of such loans. 
 
(Sec. 302) Reduces from 23% to 16% the percentage of defaulted FFEL collections a guaranty agency may retain, beginning in October 2007.
 
(Sec. 303) Eliminates exceptional performer status for lenders, servicers, and guaranty agencies, which rewards such entities for high due diligence in FFEL collection, beginning in October 2007.
 
(Sec. 304) Redefines economic hardship to include borrowers whose full-time earnings do not exceed 150% of the poverty line. Requires consideration, in determining economic hardship, of the poverty line applicable to the borrower's family size, rather than the one applicable to a family of two. Applies the new definition only to new borrowers of HEA title IV loans before October 2012.
 
Defines eligible not-for-profit holders of FFELs. Provides that, if such holders sell their loans to entities that are not not-for-profit holders, their special allowance payments will be calculated using the rates applicable to such entities.
 
(Sec. 305) Changes the formula for calculating special allowance payments made to FFEL lenders, to compensate them for the difference between FFEL interest rates and market rates, by reducing the lender rate: (1) by 0.50 percentage points for Stafford loans and consolidation loans; (2) by 0.80 percentage points for PLUS loans if the loans are held by for-profit lenders; and (3) by 0.35 percentage points and 0.65 percentage points respectively for loans held by not-for-profit lenders. 
 
Increases the loan fee charged FFEL lenders from .5% to 1% of the principal amount of loans first disbursed after September 2007. Prohibits its collection from borrowers.
 

Title IV: William D. Ford Federal Direct Loan Program
 - (Sec. 401) Establishes a DL forgiveness program under which borrowers who, after October 1, 2007, have made 120 payments under income-based or standard repayment plans while employed in certain public service jobs may have 1/10th of their outstanding loan forgiven for each year during which they earned $65,000 or less.
 
(Sec. 402) Alters, beginning with FY2008, the calculation of the account maintenance fee paid to FFEL guarantors so that it is based on the number of accounts lenders have, rather than the original principal amount of active loans they have guaranteed.
 

Title V: Federal Perkins Loans
 - (Sec. 501) Delays the date after which IHEs must begin distributing late PL collections to the Secretary of Education from March 31, 2012, to September 30, 2012.
 

Title VI: Need Analysis
 - (Sec. 601) Increases students' eligibility for financial aid under title IV of the HEA by increasing, by academic year 2012-2013, the income protection allowance to: (1) $6,000 for a dependent student; (2) $9,330 for an independent student without dependents, other than perhaps a spouse, who is single, separated, or married, and where both spouses are enrolled; and (3) $14,960 for an independent student without dependents other than a spouse if only one of the couple is enrolled. Provides for cost-of-living adjustments to such amounts.
 
Increases through academic year 2012-2013 the income protection allowances in the table for independent students with dependents other than a spouse, with cost-of-living adjustments to such amounts thereafter.
 
Revises the table of income protection allowances for parents of dependent students, for each academic year after academic year 2008-2009, by increasing such amounts by the percentage increase in the cost-of-living since December 1992.
 
(Sec. 602) Raises from $20,000 to $30,000 the zero-expected family contributions income limit for parents and independent students with dependents.
 
(Sec. 603) Includes the recent unemployment of an independent student and homelessness within the special circumstances giving financial aid administrators extra discretion in making need analyses.
 
(Sec. 604) Excludes untaxed distributions from qualified education benefits as income or assets in computing expected family contributions in student aid calculations.
 
Includes in the definition of independent students: (1) students who are in foster care or who were in foster care until age 18; (2) students who are emancipated minors or in legal guardianship; and (3) students who have been verified as unaccompanied homeless children or youth. States that a financial aid administrator may make a determination of independence based on a documented determination made by another aid administrator in the same award year.
 
Excludes special combat pay, received by military personnel because of exposure to a hazardous situation, from student need analyses or from consideration as financial assistance.
 
Treats a qualified education benefit as: (1) the parent's asset when considering the family contribution for a dependent student; and (2) the student's asset when considering such contribution for independent students.
 
Excludes from need analyses any untaxed distributions from state prepaid tuition plans or Coverdell education savings accounts.
 
(Sec. 605) Authorizes and appropriates $10 million for FY2008 to cover the estimated increase in Pell Grant program costs resulting from the amendments made by sections 603 and 604 for award year 2007-2008.
 

Title VII: Miscellaneous -
 (Sec. 701) Directs the Secretary to conduct a Competitive Loan Auction Pilot program, beginning in July 2009, under which biennial auctions are held in each state allowing prequalified lenders to compete for the exclusive right to make FFEL program PLUS loans at all IHEs within the state. Provides that the winning bids from each state auction shall be the two bids containing the lowest and the second lowest proposed special allowance payments requested from the Secretary. Requires the Secretary to guarantee 99% of the unpaid balance of such loans.
 
Establishes a College Access Partnership Grant program requiring the Secretary to provide formula matching grants to states for specified activities and services to improve student access to postsecondary education. Requires that such grants cover two-thirds of program costs, with states responsible for the remainder. Lists as allowable grant activities and services: (1) information to students and parents on postsecondary education benefits; (2) information on financing options that promote financial literacy and debt management among students and parents; (3) outreach for at-risk students; (4) assistance in completing the Free Application for Federal Student Aid (FAFSA) or other common financial reporting forms; (5) need-based grant aid for students; (6) professional development for middle school and high school guidance counselors, and college financial aid administrators and admissions counselors; and (7) student loan cancellation, repayment, or interest rate reductions for borrowers employed in high-need geographical areas or professions. Requires states to give service priority to low-income students and families. Authorizes and appropriates $113 million for the program for each of FY2008 and FY2009.
 
Establishes a Financial Literacy Program requiring the Secretary to award competitive five-year matching grants to nonprofit or for-profit entities to increase the financial literacy of students who are enrolled or will enroll in IHEs. Authorizes and appropriates $10 million for the program for each of FY2008 and FY2009.
 
Establishes a Secondary School Graduation and College Enrollment program. Requires the Secretary to award competitive five-year matching grants to consortia of nonprofit organizations and IHEs that have been effective in raising secondary school graduation rates and postsecondary enrollment rates, in order to operate programs of assistance to LEAs with secondary school graduation rates of 70% or less. Requires grantees to implement: (1) college-preparatory curricula; (2) accelerated academic catch-up programs for students who enter secondary school not meeting state academic performance standards; (3) early warning systems to quickly identify at-risk secondary school students; and (4) comprehensive postsecondary education guidance programs. Authorizes and appropriates $25 million for the program for each of FY2008 and FY2009.
 
(Sec. 702) Prohibits military and civil authorities, federal, state, and territorial, from carrying out death sentences on pregnant women.
 

Title VIII: Other Matters - 
 (Sec. 801) Expresses the sense of the Senate that detainees housed at Guantanamo Bay, Cuba, including senior members of al Qaeda, should not be released into American society or transferred stateside into facilities in American communities and neighborhoods.

action_date: 2007-09-05
text: 
College Cost Reduction and Access Act - 
Title I: Grants to Students in Attendance at Institutions of Higher Education
 - (Sec. 101) Amends the Higher Education Act of 1965 (HEA) to repeal the formula for calculating an individual Pell grant which includes, in part, the sum of the student's tuition. (Thus eliminates the &quot;tuition sensitivity provision&quot; which currently prohibits maximum Pell grant awards to students attending low-tuition institutions of higher education (IHEs) even if their income is low enough otherwise to qualify for the maximum award.) Authorizes and appropriates $11 million for FY2008 to cover the costs of eliminating tuition sensitivity.
 
(Sec. 102) Reauthorizes the Pell Grant program through FY2017. Authorizes and appropriates additional funding for the program for FY2008-FY2017 to increase the amount of the maximum Pell grant for which a student is eligible by $490 for each of the award years 2008-2009 and 2009-2010, $690 for each of the award years 2010-2011 and 2011-2012, and $1,900 for award year 2012-2013.
 
(Sec. 103) Authorizes and appropriates $57 million for each of FY2008-FY2011 to provide assistance to all Upward Bound projects that did not receive assistance in FY2007 and have a grant score above 70.
 
(Sec. 104) Establishes a TEACH Grant program, providing $4,000 of tuition assistance each academic year to high-achieving undergraduate, post-baccalaureate, and graduate students who commit to teaching a high-need subject in a high-need elementary or secondary school for four years. Includes mathematics, science, foreign languages, bilingual education, special education, and reading among such high-need subjects.
 
Sets an $16,000 aggregate limit on an individual's receipt of TEACH Grants.
 

Title II: Student Loan Benefits, Terms, and Conditions
 - (Sec. 201) Phases-in cuts in the interest rate charged undergraduate student borrowers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs, thereby reducing such rate from 6.8% in July 2006 to 3.4% in July 2011.
 
(Sec. 202) Eliminates the three-year deferment limit under the FFEL, DL, and Perkins loan (PL) programs for borrowers who are serving on active duty or performing qualifying National Guard duty during a war or other military operation or national emergency. Extends such deferment for 180 days after demobilization. Removes language limiting such deferments to loans for which the first disbursement was made after June 2001. 
 
(Sec. 203) Caps FFEL and DL repayments by student borrowers at no more than 15% of the amount a borrower's and the borrower's spouse's adjusted gross income exceeds 150% of the poverty line. Requires the Secretary of Education to pay any unpaid interest on such loans for up to three years, and cancel or repay them after 25 years.
 
(Sec. 204) Allows veterans who were called to active duty when enrolled in, or within six months of being enrolled in, an IHE to receive a 13-month student loan deferment. Cancels such deferment upon the borrower's reenrollment in school.
 
(Sec. 205) Includes FFEL, DL, and PL economic hardship deferral periods, as well as the months a borrower's FFEL or DL payments are capped, in calculating the maximum period an income contingent repayment plan may be in effect for a non-defaulting borrower.
 

Title III: Federal Family Education Loan Program
 - (Sec. 301) Reduces from 23% to 16% the percentage of defaulted FFEL collections a guaranty agency may retain, beginning in October 2007.
 
(Sec. 302) Eliminates exceptional performer status for lenders, servicers, and guaranty agencies, which rewards such entities for high due diligence in FFEL collection, beginning in October 2007.
 
(Sec. 303) Reduces FFEL lender insurance to 95% of the unpaid principal of such loans, beginning in FY2013. Provides total coverage to lenders-of-last-resort.
 
(Sec. 304) Redefines economic hardship so that it describes the condition of borrowers whose full-time earnings do not exceed the greater of the minimum wage or 150% of the poverty line. Requires consideration, in determining economic hardship, of the poverty line applicable to the borrower's family size, rather than the one applicable to a family of two. 
 
Defines eligible not-for-profit holders of FFELs. Provides that: (1) such holders must have been acting as eligible lenders upon this Act's enactment, unless they are trustees acting on behalf of such lenders; and (2) if such holders sell their loans to entities that are not not-for-profit holders, their special allowance payments will be calculated using the rates applicable to such entities.
 
(Sec. 305) Changes the formula for calculating special allowance payments (SAPs) made to FFEL lenders, to compensate them for the difference between FFEL interest rates and market rates, by reducing the lender rate: (1) by 0.40 percentage points for loans held by nonprofit lenders; and (2) by 0.55 percentage points for all other lenders. Equalizes the SAP rate for FFEL Stafford and PLUS loans.
 
Increases the loan fee charged FFEL lenders from .5% to 1% of the principal amount of loans first disbursed after September 2007. Prohibits its collection from borrowers.
 
(Sec. 306) Lowers the account maintenance fee paid to FFEL guarantors from .10% to .06% of the original principal amount of active loans they have guaranteed.
 

Title IV: Loan Forgiveness
 - (Sec. 401) Cancels the DL balance owed by borrowers who, after October 1, 2007, have made 120 payments under income-based or standard repayment plans while employed in certain public service jobs.
 

Title V: Federal Perkins Loans
 - (Sec. 501) Delays the date after which IHEs must begin distributing late PL collections to the Secretary from March 31, 2012, to October 1, 2012.
 

Title VI: Need Analysis
 - (Sec. 601) Increases students' eligibility for financial aid under title IV of the HEA by increasing, by academic year 2012-2013, the income protection allowance to: (1) $6,000 for a dependent student; (2) $9,330 for an independent student without dependents, other than perhaps a spouse, who is single, separated, or married, and where both spouses are enrolled; and (3) $14,960 for an independent student without dependents other than a spouse if only one of the couple is enrolled. Provides for cost-of-living adjustments to such amounts.
 
Increases through academic year 2012-2013 the income protection allowances in the table for independent students with dependents other than a spouse, with cost-of-living adjustments to such amounts thereafter.
 
Revises the table of income protection allowances for parents of dependent students, for each academic year after academic year 2008-2009, by increasing such amounts by the percentage increase in the cost-of-living since December 1992.
 
(Sec. 602) Makes dependent students eligible for a simplified means test if one of their parents is a dislocated worker or they or their parents received a means-tested federal benefit within the past two years (currently, one year). Makes independent students eligible for a simplified means test if they or their spouses are dislocated workers and they have received a means-tested federal benefit within the past two years. 
 
Raises from $20,000 to $30,000 the zero-expected family contributions income limit which allows students in families with incomes below such limit to qualify for the maximum Pell grant award. Provides for cost-of-living adjustments to such amount.
 
Includes the dislocated worker status of a family member within the special circumstances giving financial aid administrators extra discretion in making need analyses.
 
(Sec. 603) Includes the recent unemployment of an independent student, the dislocated worker status of a family member, and homelessness within the special circumstances giving financial aid administrators extra discretion in making need analyses.
 
(Sec. 604) Excludes untaxed distributions from qualified education benefits as income or assets in computing expected family contributions in student aid calculations.
 
Excludes welfare benefits, Earned Income Tax Credits, federal special fuels tax credits, untaxed foreign income, untaxed Social Security benefits, and the additional federal child tax credit from the income and benefits which are considered untaxed and thereby included in student need analyses.
 
Includes in the definition of independent students those who: (1) are in foster care; (2) are emancipated minors or in legal guardianship; and (3) have been verified as unaccompanied homeless children or youth or as unaccompanied, at risk of homelessness, and self-supporting. States that a financial aid administrator may make a determination of independence based on a documented determination made by another financial aid administrator in the same award year.
 
Excludes special combat pay, received by military personnel because of exposure to a hazardous situation, from student need analyses or from consideration as financial assistance.
 
Treats a qualified education benefit as: (1) the parent's asset when considering the family contribution for a dependent student; and (2) the student's asset when considering such contribution for independent students.
 
Excludes from need analyses any untaxed distributions from state prepaid tuition plans or Coverdell education savings accounts.
 

Title VII: Competitive Loan Auction Pilot Program -
 (Sec. 701) Directs the Secretary to conduct a Competitive Loan Auction Pilot program, beginning in July 2009, under which biennial auctions are held in each state allowing prequalified lenders to compete for the exclusive right to make FFEL program PLUS loans at all IHEs within the state. Provides that the winning bids from each state auction shall be the two bids containing the lowest and the second lowest proposed special allowance payments requested from the Secretary. Requires the Secretary to guarantee 99% of the unpaid balance of such loans.
 

Title VIII: Partnership Grants
 - (Sec. 801) Establishes a College Access Challenge Grant program requiring the Secretary to provide formula matching grants to states for specified activities and services to improve student access to postsecondary education. Requires that such grants cover two-thirds of program costs, with states responsible for the remainder. Requires the Secretary to reduce a state's grant to the extent it fails to provide the full non-federal share and authorizes the award of the amount of such reduction directly to a philanthropic organization to carry out the program.
 
 Lists as allowable grant activities and services: (1) information to students and parents on postsecondary education benefits; (2) information on financing options that promote financial literacy and debt management among students and parents; (3) outreach for at-risk students; (4) assistance in completing the Free Application for Federal Student Aid (FAFSA) or other common financial reporting forms; (5) need-based grant aid for students; (6) professional development for middle school and high school guidance counselors, and college financial aid administrators and admissions counselors; and (7) student loan cancellation, repayment, or interest rate reductions for borrowers employed in high-need geographical areas or professions. Requires states to give service priority to low-income students and families. Authorizes and appropriates $66 million for the program for each of FY2008 and FY2009.
 
(Sec. 802) Makes $255 million for each of FY2008-FY2012 available to minority-serving institutions, with: (1) $100 million going to Hispanic-serving institutions; (2) $100 million going to Historically Black Colleges and Universities and Predominantly Black institutions; and (3) $55 million going to Tribal Colleges and Universities, Alaska Native and Native Hawaiian-serving institutions, Asian American and Native American Pacific Islander-serving institutions, and Native American-serving nontribal institutions.
 
Defines Predominantly Black institutions as accredited institutions serving at least 1,000 undergraduate students at least: (1) 50% of whom are pursuing a bachelor's or associate's degree; (2) 40% of whom are Black Americans; and (3) 50% of whom are low-income or first-generation college students. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.
 
Defines Asian American and Native American Pacific Islander-serving institutions as accredited institutions that have a significant enrollment of financially needy students and an enrollment of undergraduate students that are at least 10% Asian American and Native American Pacific Islander students. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.
 
Defines Native American-serving nontribal institutions as IHEs that have an enrollment of undergraduate students that are at least 10% Native American students and are not Tribal Colleges and Universities.
 
Requires that funds for Predominantly Black institutions be available for competitive grants for programs in science, technology, engineering, mathematics, health education, international affairs, teacher preparation, or to improve the educational outcomes of African American males.
 
Requires that funds for the other institutions be used for certain capacity-building activities. Sets spending priorities for Hispanic-serving institutions and Historically Black Colleges and Universities that include education in disciplines in which minorities and low-income students are underrepresented and, in the case of Hispanic-serving institutions, the development of model transfer and articulation agreements.

action_date: 2007-09-27
text: 

(This measure has not been amended since the Conference Report was filed in the House on September 6, 2007. The summary of that version is repeated here.)

 
College Cost Reduction and Access Act - 
Title I: Grants to Students in Attendance at Institutions of Higher Education
 - (Sec. 101) Amends the Higher Education Act of 1965 (HEA) to repeal the formula for calculating an individual Pell grant which includes, in part, the sum of the student's tuition. (Thus eliminates the &quot;tuition sensitivity provision&quot; which currently prohibits maximum Pell grant awards to students attending low-tuition institutions of higher education (IHEs) even if their income is low enough otherwise to qualify for the maximum award.) Authorizes and appropriates $11 million for FY2008 to cover the costs of eliminating tuition sensitivity.
 
(Sec. 102) Reauthorizes the Pell Grant program through FY2017. Authorizes and appropriates additional funding for the program for FY2008-FY2017 to increase the amount of the maximum Pell grant for which a student is eligible by $490 for each of the award years 2008-2009 and 2009-2010, $690 for each of the award years 2010-2011 and 2011-2012, and $1,900 for award year 2012-2013.
 
(Sec. 103) Authorizes and appropriates $57 million for each of FY2008-FY2011 to provide assistance to all Upward Bound projects that did not receive assistance in FY2007 and have a grant score above 70.
 
(Sec. 104) Establishes a TEACH Grant program, providing $4,000 of tuition assistance each academic year to high-achieving undergraduate, post-baccalaureate, and graduate students who commit to teaching a high-need subject in a high-need elementary or secondary school for four years. Includes mathematics, science, foreign languages, bilingual education, special education, and reading among such high-need subjects.
 
Sets an $16,000 aggregate limit on an individual's receipt of TEACH Grants.
 

Title II: Student Loan Benefits, Terms, and Conditions
 - (Sec. 201) Phases-in cuts in the interest rate charged undergraduate student borrowers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs, thereby reducing such rate from 6.8% in July 2006 to 3.4% in July 2011.
 
(Sec. 202) Eliminates the three-year deferment limit under the FFEL, DL, and Perkins loan (PL) programs for borrowers who are serving on active duty or performing qualifying National Guard duty during a war or other military operation or national emergency. Extends such deferment for 180 days after demobilization. Removes language limiting such deferments to loans for which the first disbursement was made after June 2001. 
 
(Sec. 203) Caps FFEL and DL repayments by student borrowers at no more than 15% of the amount a borrower's and the borrower's spouse's adjusted gross income exceeds 150% of the poverty line. Requires the Secretary of Education to pay any unpaid interest on such loans for up to three years, and cancel or repay them after 25 years.
 
(Sec. 204) Allows veterans who were called to active duty when enrolled in, or within six months of being enrolled in, an IHE to receive a 13-month student loan deferment. Cancels such deferment upon the borrower's reenrollment in school.
 
(Sec. 205) Includes FFEL, DL, and PL economic hardship deferral periods, as well as the months a borrower's FFEL or DL payments are capped, in calculating the maximum period an income contingent repayment plan may be in effect for a non-defaulting borrower.
 

Title III: Federal Family Education Loan Program
 - (Sec. 301) Reduces from 23% to 16% the percentage of defaulted FFEL collections a guaranty agency may retain, beginning in October 2007.
 
(Sec. 302) Eliminates exceptional performer status for lenders, servicers, and guaranty agencies, which rewards such entities for high due diligence in FFEL collection, beginning in October 2007.
 
(Sec. 303) Reduces FFEL lender insurance to 95% of the unpaid principal of such loans, beginning in FY2013. Provides total coverage to lenders-of-last-resort.
 
(Sec. 304) Redefines economic hardship so that it describes the condition of borrowers whose full-time earnings do not exceed the greater of the minimum wage or 150% of the poverty line. Requires consideration, in determining economic hardship, of the poverty line applicable to the borrower's family size, rather than the one applicable to a family of two. 
 
Defines eligible not-for-profit holders of FFELs. Provides that: (1) such holders must have been acting as eligible lenders upon this Act's enactment, unless they are trustees acting on behalf of such lenders; and (2) if such holders sell their loans to entities that are not not-for-profit holders, their special allowance payments will be calculated using the rates applicable to such entities.
 
(Sec. 305) Changes the formula for calculating special allowance payments (SAPs) made to FFEL lenders, to compensate them for the difference between FFEL interest rates and market rates, by reducing the lender rate: (1) by 0.40 percentage points for loans held by nonprofit lenders; and (2) by 0.55 percentage points for all other lenders. Equalizes the SAP rate for FFEL Stafford and PLUS loans.
 
Increases the loan fee charged FFEL lenders from .5% to 1% of the principal amount of loans first disbursed after September 2007. Prohibits its collection from borrowers.
 
(Sec. 306) Lowers the account maintenance fee paid to FFEL guarantors from .10% to .06% of the original principal amount of active loans they have guaranteed.
 

Title IV: Loan Forgiveness
 - (Sec. 401) Cancels the DL balance owed by borrowers who, after October 1, 2007, have made 120 payments under income-based or standard repayment plans while employed in certain public service jobs.
 

Title V: Federal Perkins Loans
 - (Sec. 501) Delays the date after which IHEs must begin distributing late PL collections to the Secretary from March 31, 2012, to October 1, 2012.
 

Title VI: Need Analysis
 - (Sec. 601) Increases students' eligibility for financial aid under title IV of the HEA by increasing, by academic year 2012-2013, the income protection allowance to: (1) $6,000 for a dependent student; (2) $9,330 for an independent student without dependents, other than perhaps a spouse, who is single, separated, or married, and where both spouses are enrolled; and (3) $14,960 for an independent student without dependents other than a spouse if only one of the couple is enrolled. Provides for cost-of-living adjustments to such amounts.
 
Increases through academic year 2012-2013 the income protection allowances in the table for independent students with dependents other than a spouse, with cost-of-living adjustments to such amounts thereafter.
 
Revises the table of income protection allowances for parents of dependent students, for each academic year after academic year 2008-2009, by increasing such amounts by the percentage increase in the cost-of-living since December 1992.
 
(Sec. 602) Makes dependent students eligible for a simplified means test if one of their parents is a dislocated worker or they or their parents received a means-tested federal benefit within the past two years (currently, one year). Makes independent students eligible for a simplified means test if they or their spouses are dislocated workers and they have received a means-tested federal benefit within the past two years. 
 
Raises from $20,000 to $30,000 the zero-expected family contributions income limit which allows students in families with incomes below such limit to qualify for the maximum Pell grant award. Provides for cost-of-living adjustments to such amount.
 
Includes the dislocated worker status of a family member within the special circumstances giving financial aid administrators extra discretion in making need analyses.
 
(Sec. 603) Includes the recent unemployment of an independent student, the dislocated worker status of a family member, and homelessness within the special circumstances giving financial aid administrators extra discretion in making need analyses.
 
(Sec. 604) Excludes untaxed distributions from qualified education benefits as income or assets in computing expected family contributions in student aid calculations.
 
Excludes welfare benefits, Earned Income Tax Credits, federal special fuels tax credits, untaxed foreign income, untaxed Social Security benefits, and the additional federal child tax credit from the income and benefits which are considered untaxed and thereby included in student need analyses.
 
Includes in the definition of independent students those who: (1) are in foster care; (2) are emancipated minors or in legal guardianship; and (3) have been verified as unaccompanied homeless children or youth or as unaccompanied, at risk of homelessness, and self-supporting. States that a financial aid administrator may make a determination of independence based on a documented determination made by another financial aid administrator in the same award year.
 
Excludes special combat pay, received by military personnel because of exposure to a hazardous situation, from student need analyses or from consideration as financial assistance.
 
Treats a qualified education benefit as: (1) the parent's asset when considering the family contribution for a dependent student; and (2) the student's asset when considering such contribution for independent students.
 
Excludes from need analyses any untaxed distributions from state prepaid tuition plans or Coverdell education savings accounts.
 

Title VII: Competitive Loan Auction Pilot Program -
 (Sec. 701) Directs the Secretary to conduct a Competitive Loan Auction Pilot program, beginning in July 2009, under which biennial auctions are held in each state allowing prequalified lenders to compete for the exclusive right to make FFEL program PLUS loans at all IHEs within the state. Provides that the winning bids from each state auction shall be the two bids containing the lowest and the second lowest proposed special allowance payments requested from the Secretary. Requires the Secretary to guarantee 99% of the unpaid balance of such loans.
 

Title VIII: Partnership Grants
 - (Sec. 801) Establishes a College Access Challenge Grant program requiring the Secretary to provide formula matching grants to states for specified activities and services to improve student access to postsecondary education. Requires that such grants cover two-thirds of program costs, with states responsible for the remainder. Requires the Secretary to reduce a state's grant to the extent it fails to provide the full non-federal share and authorizes the award of the amount of such reduction directly to a philanthropic organization to carry out the program.
 
 Lists as allowable grant activities and services: (1) information to students and parents on postsecondary education benefits; (2) information on financing options that promote financial literacy and debt management among students and parents; (3) outreach for at-risk students; (4) assistance in completing the Free Application for Federal Student Aid (FAFSA) or other common financial reporting forms; (5) need-based grant aid for students; (6) professional development for middle school and high school guidance counselors, and college financial aid administrators and admissions counselors; and (7) student loan cancellation, repayment, or interest rate reductions for borrowers employed in high-need geographical areas or professions. Requires states to give service priority to low-income students and families. Authorizes and appropriates $66 million for the program for each of FY2008 and FY2009.
 
(Sec. 802) Makes $255 million for each of FY2008-FY2012 available to minority-serving institutions, with: (1) $100 million going to Hispanic-serving institutions; (2) $100 million going to Historically Black Colleges and Universities and Predominantly Black institutions; and (3) $55 million going to Tribal Colleges and Universities, Alaska Native and Native Hawaiian-serving institutions, Asian American and Native American Pacific Islander-serving institutions, and Native American-serving nontribal institutions.
 
Defines Predominantly Black institutions as accredited institutions serving at least 1,000 undergraduate students at least: (1) 50% of whom are pursuing a bachelor's or associate's degree; (2) 40% of whom are Black Americans; and (3) 50% of whom are low-income or first-generation college students. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.
 
Defines Asian American and Native American Pacific Islander-serving institutions as accredited institutions that have a significant enrollment of financially needy students and an enrollment of undergraduate students that are at least 10% Asian American and Native American Pacific Islander students. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.
 
Defines Native American-serving nontribal institutions as IHEs that have an enrollment of undergraduate students that are at least 10% Native American students and are not Tribal Colleges and Universities.
 
Requires that funds for Predominantly Black institutions be available for competitive grants for programs in science, technology, engineering, mathematics, health education, international affairs, teacher preparation, or to improve the educational outcomes of African American males.
 
Requires that funds for the other institutions be used for certain capacity-building activities. Sets spending priorities for Hispanic-serving institutions and Historically Black Colleges and Universities that include education in disciplines in which minorities and low-income students are underrepresented and, in the case of Hispanic-serving institutions, the development of model transfer and articulation agreements.


Legislative actions:
action_date: 2007-09-27
text: Became Public Law No: 110-84.
action_date: 2007-09-27
text: Became Public Law No: 110-84.
action_date: 2007-09-27
text: Signed by President.
action_date: 2007-09-27
text: Signed by President.
action_date: 2007-09-19
text: Presented to President.
action_date: 2007-09-19
text: Presented to President.
action_date: 2007-09-07
text: Cleared for White House.
action_date: 2007-09-07
text: On agreeing to the conference report Agreed to by the Yeas and Nays: 292 - 97 (Roll no. 864). (consideration: CR S11241-11263)
action_date: 2007-09-07
text: Motions to reconsider laid on the table Agreed to without objection.
action_date: 2007-09-07
text: Conference report agreed to in House: On agreeing to the conference report Agreed to by the Yeas and Nays: 292 - 97 (Roll no. 864).(consideration: CR S11241-11263)
action_date: 2007-09-07
text: The House proceeded to consider the conference report H.Rept. 110-317 as unfinished business. (consideration: CR H10307-10308)
action_date: 2007-09-07
text: POSTPONED PROCEEDINGS - At the conclusion of the debate on the Conference Report to accompany H.R. 2669, the Chair put the question on adoption of the Conference Report and by voice vote, announced that the the ayes had prevailed. Mr. George Miller (CA) demanded the yeas and nays, and the Chair postponed further proceedings on the question of adoption on the Conference Report until later in the legislative day.
action_date: 2007-09-07
text: The previous question was ordered pursuant to the rule. (consideration: CR H10270)
action_date: 2007-09-07
text: Message on Senate action sent to the House.
action_date: 2007-09-07
text: DEBATE - The House proceeded with one hour of debate on the Conference Report to accompany H.R. 2669.
action_date: 2007-09-07
text: Mr. Miller, George brought up conference report H. Rept. 110-317 for consideration under the provisions of H. Res. 637. (consideration: CR H10259-10270)
action_date: 2007-09-07
text: Rule H. Res. 637 passed House.
action_date: 2007-09-07
text: Senate agreed to conference report by Yea-Nay Vote. 79 - 12. Record Vote Number: 326.
action_date: 2007-09-07
text: Conference report agreed to in Senate: Senate agreed to conference report by Yea-Nay Vote. 79 - 12. Record Vote Number: 326.
action_date: 2007-09-07
text: Conference report considered in Senate.
action_date: 2007-09-06
text: Conference report considered in Senate. (consideration: CR S11206, S11236-11237)
action_date: 2007-09-06
text: Rules Committee Resolution H. Res. 637 Reported to House. Rule provides for consideration of the conference report to H.R. 2669. All points of order against the conference report and against its consideration are waived. The conference report shall be considered as read.
action_date: 2007-09-06
text: Conference report H. Rept. 110-317 filed. (text of conference report: CR H10168-10181)
action_date: 2007-09-06
text: Conference report filed: Conference report H. Rept. 110-317 filed.(text of conference report: CR H10168-10181)
action_date: 2007-09-05
text: Conferees agreed to file conference report.
action_date: 2007-09-05
text: Conference committee actions: Conferees agreed to file conference report.
action_date: 2007-09-04
text: The Speaker appointed conferees: Miller, George, Andrews, Scott (VA), Hinojosa, Tierney, Wu, Davis (CA), Davis (IL), Bishop (NY), Hirono, Altmire, Yarmuth, Courtney, McKeon, Keller, McMorris Rodgers, Foxx, Kuhl (NY), Walberg, Souder, Ehlers, Biggert, and Price (GA).
action_date: 2007-09-04
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2007-09-04
text: On motion that the House instruct conferees Agreed to by the Yeas and Nays: 305 - 83 (Roll no. 849).
action_date: 2007-09-04
text: POSTPONED PROCEEDINGS - At the conclusion of debate on the Hoekstra motion to instruct conferees, the Chair put the question on adoption of the motion and by voice vote announced that the ayes had prevailed. Mr. Hoekstra demanded the Yeas and Nays and the Chair postponed further proceedings on the question of adoption of the motion until later in the legislative day.
action_date: 2007-09-04
text: The previous question was ordered without objection. (consideration: CR H10042)
action_date: 2007-09-04
text: DEBATE - The House proceeded with one hour of debate on the Hoekstra motion to instruct conferees on H.R. 2669. The instructions contained in the motion seek to require the managers on the part of the House to agree to the provisions contained in section 801 of the Senate amendment, relating to the sense of the Senate on the detainees at Guantanamo Bay, Cuba.
action_date: 2007-09-04
text: Mr. Hoekstra moved that the House instruct conferees. (consideration: CR H10038-10042, H10045-10046; text: CR H10038)
action_date: 2007-09-04
text: On motion that the House disagree to the Senate amendment, and agree to a conference Agreed to without objection. (consideration: CR H10038-10042, H10045-10046)
action_date: 2007-09-04
text: Mr. Miller, George asked unanimous consent that the House disagree to the Senate amendment, and agree to a conference.
action_date: 2007-07-20
text: Message on Senate action sent to the House.
action_date: 2007-07-20
text: Senate insists on its amendment, asks for a conference, appoints conferees Kennedy; Dodd; Harkin; Mikulski; Bingaman; Murray; Reed; Clinton; Obama; Sanders; Brown; Enzi; Gregg; Alexander; Burr; Isakson; Murkowski; Hatch; Roberts; Allard; Coburn. (consideration: CR 7/19/2007 S9597)
action_date: 2007-07-20
text: Passed Senate with an amendment by Yea-Nay Vote. 78 - 18. Record Vote Number: 272. (text: CR S9661-9668)
action_date: 2007-07-20
text: Passed/agreed to in Senate: Passed Senate with an amendment by Yea-Nay Vote. 78 - 18. Record Vote Number: 272.(text: CR S9661-9668)
action_date: 2007-07-19
text: Considered by Senate. (consideration: CR S9534-9574, S9574-9597)
action_date: 2007-07-18
text: Measure laid before Senate by motion. (consideration: CR S9437-9463)
action_date: 2007-07-18
text: Motion to proceed to consideration of measure agreed to in Senate by Yea-Nay. 49 - 48. Record Vote Number: 253. (consideration: CR S9437)
action_date: 2007-07-16
text: Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 269.
action_date: 2007-07-11
text: The Clerk was authorized to correct section numbers, punctuation, and cross references, and to make other necessary technical and conforming corrections in the engrossment of H.R. 2669.
action_date: 2007-07-11
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2007-07-11
text: On passage Passed by recorded vote: 273 - 149 (Roll no. 613).
action_date: 2007-07-11
text: Passed/agreed to in House: On passage Passed by recorded vote: 273 - 149 (Roll no. 613).
action_date: 2007-07-11
text: On motion to recommit with instructions Failed by recorded vote: 199 - 223 (Roll no. 612).
action_date: 2007-07-11
text: The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H7555)
action_date: 2007-07-11
text: Floor summary: DEBATE - The House proceeded with 10 minutes of debate on the Roskam motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House promptly with an amendment providing that a borrower who is a full-time elected public official who receives compensation for such elected position, or who is a registered lobbyist at either the Federal or State level who receives compensation for lobbying activities, shall be ineligible for any of the loan forgiveness programs included in the bill.
action_date: 2007-07-11
text: Mr. Roskam moved to recommit with instructions to Education and Labor. (consideration: CR H7555-7558)
action_date: 2007-07-11
text: DEBATE - Pursuant to the provisions of H.Res. 531, the House proceeded with 60 minutes of debate on the McKeon amendment in the nature of a substitute.
action_date: 2007-07-11
text: DEBATE - The House proceeded with one hour of debate on H.R. 2669.
action_date: 2007-07-11
text: Rule provides for consideration of H.R. 2669 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. A specified amendment is in order. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. The amendment in the nature of a substitute recommended by the Committee on Education and Labor now printed in the bill, modified by the amendment printed in part A of the report of the Committee on Rules accompanying this resolution, shall be considered as adopted.
action_date: 2007-07-11
text: Considered under the provisions of rule H. Res. 531. (consideration: CR H7506-7558; text of measure as reported in House: CR H7506-7517)
action_date: 2007-07-11
text: Rule H. Res. 531 passed House.
action_date: 2007-07-10
text: Rules Committee Resolution H. Res. 531 Reported to House. Rule provides for consideration of H.R. 2669 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. A specified amendment is in order. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. The amendment in the nature of a substitute recommended by the Committee on Education and Labor now printed in the bill, modified by the amendment printed in part A of the report of the Committee on Rules accompanying this resolution, shall be considered as adopted.
action_date: 2007-06-25
text: Placed on the Union Calendar, Calendar No. 128.
action_date: 2007-06-25
text: Reported (Amended) by the Committee on Education and Labor. H. Rept. 110-210.
action_date: 2007-06-25
text: Reported (Amended) by the Committee on Education and Labor. H. Rept. 110-210.
action_date: 2007-06-13
text: Committee Consideration and Mark-up Session Held.
action_date: 2007-06-13
text: Ordered to be Reported (Amended) by the Yeas and Nays: 30 - 16.
action_date: 2007-06-12
text: Referred to the House Committee on Education and Labor.
action_date: 2007-06-12
text: Introduced in House
action_date: 2007-06-12
text: Introduced in House

Enacted as: number: 110-84