College Cost Reduction and Access Act
PL 110-84 (H.R.2669), enacted 09/27/2007

121 STAT. 784 
PUBLIC LAW 110–84—SEPT. 27, 2007 
Public Law 110–84 
110th Congress 
An Act 
To provide for reconciliation pursuant to section 601 of the concurrent resolution 
on the budget for fiscal year 2008. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘College Cost 
Reduction and Access 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.). 
(c) EFFECTIVE DATE.—Except as otherwise expressly provided, 
the amendments made by this Act shall be effective on October 
1, 2007. 
TITLE I—GRANTS TO STUDENTS IN AT-
TENDANCE 
AT 
INSTITUTIONS 
OF 
HIGHER EDUCATION 
SEC. 101. TUITION SENSITIVITY. 
(a) AMENDMENT.—Section 401(b) (20 U.S.C. 1070a(b)) is 
amended— 
(1) by striking paragraph (3); and 
(2) by redesignating paragraphs (4) through (9) as para-
graphs (3) through (8), respectively. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall be effective with respect to determinations of Federal 
Pell Grant amounts for award years beginning on or after July 
1, 2007. 
(c) AUTHORIZATION AND APPROPRIATION OF FUNDS.—There is 
authorized to be appropriated, and there is appropriated, out of 
any money in the Treasury not otherwise appropriated, for the 
Department of Education to carry out the amendment made by 
subsection (a), $11,000,000 for fiscal year 2008. 
SEC. 102. MANDATORY PELL GRANT INCREASES. 
(a) EXTENSION
OF
AUTHORITY.—Section 401(a) (20 U.S.C. 
1070a(a)) is amended by striking ‘‘fiscal year 2004’’ and inserting 
‘‘fiscal year 2017’’. 
20 USC 1070a 
note. 
20 USC 1070a 
note. 
College Cost 
Reduction and 
Access Act. 
20 USC 1001 
note. 
Sept. 27, 2007 
[H.R. 2669] 
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121 STAT. 785 
PUBLIC LAW 110–84—SEPT. 27, 2007 
(b) FUNDING
FOR
INCREASES.—Section 401(b) (20 U.S.C. 
1070a(b)) is amended by adding at the end the following new 
paragraph: 
‘‘(9) ADDITIONAL FUNDS.— 
‘‘(A) IN GENERAL.—There are authorized to be appro-
priated, and there are appropriated, to carry out subpara-
graph (B) of this paragraph (in addition to any other 
amounts appropriated to carry out this section and out 
of any money in the Treasury not otherwise appropriated) 
the following amounts— 
‘‘(i) $2,030,000,000 for fiscal year 2008; 
‘‘(ii) $2,090,000,000 for fiscal year 2009; 
‘‘(iii) $3,030,000,000 for fiscal year 2010; 
‘‘(iv) $3,090,000,000 for fiscal year 2011; 
‘‘(v) $5,050,000,000 for fiscal year 2012; 
‘‘(vi) $105,000,000 for fiscal year 2013; 
‘‘(vii) $4,305,000,000 for fiscal year 2014; 
‘‘(viii) $4,400,000,000 for fiscal year 2015; 
‘‘(ix) $4,600,000,000 for fiscal year 2016; and 
‘‘(x) $4,900,000,000 for fiscal year 2017. 
‘‘(B) INCREASE IN FEDERAL PELL GRANTS.—The amounts 
made available pursuant to subparagraph (A) of this para-
graph shall be used to increase the amount of the maximum 
Federal Pell Grant for which a student shall be eligible 
during an award year, as specified in the last enacted 
appropriation Act applicable to that award year, by— 
‘‘(i) $490 for each of the award years 2008–2009 
and 2009–2010; 
‘‘(ii) $690 for each of the award years 2010–2011 
and 2011–2012; and 
‘‘(iii) $1,090 for award year 2012–2013. 
‘‘(C) ELIGIBILITY.—The Secretary shall only award an 
increased amount of a Federal Pell Grant under this section 
for any award year pursuant to the provisions of this 
paragraph to students who qualify for a Federal Pell Grant 
award under the maximum grant award enacted in the 
annual appropriation Act for such award year without 
regard to the provisions of this paragraph. 
‘‘(D) FORMULA
OTHERWISE
UNAFFECTED.—Except as 
provided in subparagraphs (B) and (C), nothing in this 
paragraph shall be construed to alter the requirements 
of this section, or authorize the imposition of additional 
requirements, for the determination and allocation of Fed-
eral Pell Grants under this section. 
‘‘(E) 
RATABLE
INCREASES
AND
DECREASES.—The 
amounts specified in subparagraph (B) shall be ratably 
increased or decreased to the extent that funds available 
under subparagraph (A) exceed or are less than (respec-
tively) the amount required to provide the amounts speci-
fied in subparagraph (B). 
‘‘(F) USE OF FISCAL YEAR FUNDS FOR AWARD YEARS.— 
The amounts made available by subparagraph (A) for any 
fiscal year shall be available and remain available for 
use under subparagraph (B) for the award year that begins 
in such fiscal year.’’. 
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121 STAT. 786 
PUBLIC LAW 110–84—SEPT. 27, 2007 
SEC. 103. UPWARD BOUND. 
Section 402C is further amended by adding at the end the 
following new subsection: 
‘‘(f) ADDITIONAL FUNDS.— 
‘‘(1) 
AUTHORIZATION
AND
APPROPRIATION.—There 
are 
authorized to be appropriated, and there are appropriated to 
the 
Secretary, 
from 
funds 
not 
otherwise 
appropriated, 
$57,000,000 for each of the fiscal years 2008 through 2011 
to carry out paragraph (2), except that any amounts that remain 
unexpended for such purpose for each of such fiscal years 
may be available for technical assistance and administration 
costs for the Upward Bound program. The authority to award 
grants under this subsection shall expire at the end of fiscal 
year 2011. 
‘‘(2) USE OF FUNDS.—The amounts made available by para-
graph (1) shall be available to provide assistance to all Upward 
Bound projects that did not receive assistance in fiscal year 
2007 and that have a grant score above 70. Such assistance 
shall be made available in the form of 4-year grants.’’. 
SEC. 104. TEACH GRANTS. 
Part A of title IV (20 U.S.C. 1070 et seq.) is amended by 
adding at the end the following new subpart: 
‘‘Subpart 9—TEACH Grants 
‘‘SEC. 420L. DEFINITIONS. 
‘‘For the purposes of this subpart: 
‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligible institution’ 
means an institution of higher education, as defined in section 
102, that the Secretary determines— 
‘‘(A) provides high quality teacher preparation and 
professional development services, including extensive clin-
ical experience as a part of pre-service preparation; 
‘‘(B) is financially sound; 
‘‘(C) provides pedagogical course work, or assistance 
in the provision of such coursework, including the moni-
toring of student performance, and formal instruction 
related to the theory and practices of teaching; and 
‘‘(D) provides supervision and support services to 
teachers, or assistance in the provision of such services, 
including mentoring focused on developing effective 
teaching skills and strategies. 
‘‘(2) POST-BACCALAUREATE.—The term ‘post-baccalaureate’ 
means a program of instruction for individuals who have com-
pleted a baccalaureate degree, that does not lead to a graduate 
degree, and that consists of courses required by a State in 
order for a teacher candidate to receive a professional certifi-
cation or licensing credential that is required for employment 
as a teacher in an elementary school or secondary school in 
that State, except that such term shall not include any program 
of instruction offered by an eligible institution that offers a 
baccalaureate degree in education. 
‘‘(3) TEACHER
CANDIDATE.—The term ‘teacher candidate’ 
means a student or teacher described in subparagraph (A) 
or (B) of section 420N(a)(2). 
20 USC 1070g. 
20 USC 
1070a–13. 
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121 STAT. 787 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘SEC. 420M. PROGRAM ESTABLISHED. 
‘‘(a) PROGRAM AUTHORITY.— 
‘‘(1) PAYMENTS REQUIRED.—The Secretary shall pay to each 
eligible institution such sums as may be necessary to pay 
to each teacher candidate who files an application and agree-
ment in accordance with section 420N, and who qualifies under 
paragraph (2) of section 420N(a), a TEACH Grant in the 
amount of $4,000 for each academic year during which that 
teacher candidate is in attendance at the institution. 
‘‘(2) REFERENCES.—Grants made under paragraph (1) shall 
be known as ‘Teacher Education Assistance for College and 
Higher Education Grants’ or ‘TEACH Grants’. 
‘‘(b) PAYMENT METHODOLOGY.— 
‘‘(1) PREPAYMENT.—Not less than 85 percent of any funds 
provided to an eligible institution under subsection (a) shall 
be advanced to the eligible institution prior to the start of 
each payment period and shall be based upon an amount 
requested by the institution as needed to pay teacher candidates 
until such time as the Secretary determines and publishes 
in the Federal Register with an opportunity for comment, an 
alternative payment system that provides payments to institu-
tions in an accurate and timely manner, except that this sen-
tence shall not be construed to limit the authority of the Sec-
retary to place an institution on a reimbursement system of 
payment. 
‘‘(2) DIRECT PAYMENT.—Nothing in this section shall be 
interpreted to prohibit the Secretary from paying directly to 
teacher candidates, in advance of the beginning of the academic 
term, an amount for which teacher candidates are eligible, 
in cases where the eligible institution elects not to participate 
in the disbursement system required by paragraph (1). 
‘‘(3) DISTRIBUTION OF GRANTS TO TEACHER CANDIDATES.— 
Payments under this subpart shall be made, in accordance 
with regulations promulgated by the Secretary for such purpose, 
in such manner as will best accomplish the purposes of this 
subpart. Any disbursement allowed to be made by crediting 
the teacher candidate’s account shall be limited to tuition and 
fees and, in the case of institutionally-owned housing, room 
and board. The teacher candidate may elect to have the institu-
tion provide other such goods and services by crediting the 
teacher candidate’s account. 
‘‘(c) REDUCTIONS IN AMOUNT.— 
‘‘(1) PART-TIME STUDENTS.—In any case where a teacher 
candidate attends an eligible institution on less than a full- 
time basis (including a teacher candidate who attends an 
eligible institution on less than a half-time basis) during any 
academic year, the amount of a grant under this subpart for 
which that teacher candidate is eligible shall be reduced in 
proportion to the degree to which that teacher candidate is 
not attending on a full-time basis, in accordance with a schedule 
of reductions established by the Secretary for the purposes 
of this subpart, computed in accordance with this subpart. 
Such schedule of reductions shall be established by regulation 
and published in the Federal Register in accordance with sec-
tion 482 of this Act. 
‘‘(2) NO EXCEEDING COST.—The amount of a grant awarded 
under this subpart, in combination with Federal assistance 
Regulations. 
Federal Register, 
publication. 
Federal Register, 
publication. 
20 USC 1070g–1. 
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121 STAT. 788 
PUBLIC LAW 110–84—SEPT. 27, 2007 
and other student assistance, shall not exceed the cost of attend-
ance (as defined in section 472) at the eligible institution at 
which that teacher candidate is in attendance. If, with respect 
to any teacher candidate for any academic year, it is determined 
that the amount of a TEACH Grant exceeds the cost of attend-
ance for that year, the amount of the TEACH Grant shall 
be reduced until such grant does not exceed the cost of attend-
ance at the eligible institution. 
‘‘(d) PERIOD OF ELIGIBILITY FOR GRANTS.— 
‘‘(1) UNDERGRADUATE
AND
POST-BACCALAUREATE
STU-
DENTS.—The period during which an undergraduate or post- 
baccalaureate student may receive grants under this subpart 
shall be the period required for the completion of the first 
undergraduate baccalaureate or post-baccalaureate course of 
study being pursued by the teacher candidate at the eligible 
institution at which the teacher candidate is in attendance, 
except that— 
‘‘(A) any period during which the teacher candidate 
is enrolled in a noncredit or remedial course of study as 
described in paragraph (3) shall not be counted for the 
purpose of this paragraph; and 
‘‘(B) the total amount that a teacher candidate may 
receive under this subpart for undergraduate or post-bacca-
laureate study shall not exceed $16,000. 
‘‘(2) GRADUATE
STUDENTS.—The period during which a 
graduate student may receive grants under this subpart shall 
be the period required for the completion of a master’s degree 
course of study pursued by the teacher candidate at the eligible 
institution at which the teacher candidate is in attendance, 
except that the total amount that a teacher candidate may 
receive under this subpart for graduate study shall not exceed 
$8,000. 
‘‘(3) REMEDIAL COURSE; STUDY ABROAD.—Nothing in this 
section shall be construed to exclude from eligibility courses 
of study which are noncredit or remedial in nature (including 
courses in English language acquisition) which are determined 
by the eligible institution to be necessary to help the teacher 
candidate be prepared for the pursuit of a first undergraduate 
baccalaureate or post-baccalaureate degree or certificate or, 
in the case of courses in English language instruction, to be 
necessary to enable the teacher candidate to utilize already 
existing knowledge, training, or skills. Nothing in this section 
shall be construed to exclude from eligibility programs of study 
abroad that are approved for credit by the home institution 
at which the teacher candidate is enrolled. 
‘‘SEC. 420N. APPLICATIONS; ELIGIBILITY. 
‘‘(a) APPLICATIONS; DEMONSTRATION OF ELIGIBILITY.— 
‘‘(1) FILING REQUIRED.—The Secretary shall periodically set 
dates by which teacher candidates shall file applications for 
grants under this subpart. Each teacher candidate desiring 
a grant under this subpart for any year shall file an application 
containing such information and assurances as the Secretary 
may determine necessary to enable the Secretary to carry out 
the functions and responsibilities of this subpart. 
20 USC 1070g–2. 
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121 STAT. 789 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(2) DEMONSTRATION OF TEACH GRANT ELIGIBILITY.—Each 
application submitted under paragraph (1) shall contain such 
information as is necessary to demonstrate that— 
‘‘(A) if the applicant is an enrolled student— 
‘‘(i) the student is an eligible student for purposes 
of section 484; 
‘‘(ii) the student— 
‘‘(I) has a grade point average that is deter-
mined, under standards prescribed by the Sec-
retary, to be comparable to a 3.25 average on 
a zero to 4.0 scale, except that, if the student 
is in the first year of a program of undergraduate 
education, such grade point average shall be deter-
mined on the basis of the student’s cumulative 
secondary school grade point average; or 
‘‘(II) displayed high academic aptitude by 
receiving a score above the 75th percentile on at 
least one of the batteries in an undergraduate, 
post-baccalaureate, or graduate school admissions 
test; and 
‘‘(iii) the student is completing coursework and 
other requirements necessary to begin a career in 
teaching, or plans to complete such coursework and 
requirements prior to graduating; or 
‘‘(B) if the applicant is a current or prospective teacher 
applying for a grant to obtain a graduate degree— 
‘‘(i) the applicant is a teacher or a retiree from 
another occupation with expertise in a field in which 
there is a shortage of teachers, such as mathematics, 
science, special education, English language acquisi-
tion, or another high-need subject; or 
‘‘(ii) the applicant is or was a teacher who is using 
high-quality alternative certification routes, such as 
Teach for America, to get certified. 
‘‘(b) AGREEMENTS
TO SERVE.—Each application under sub-
section (a) shall contain or be accompanied by an agreement by 
the applicant that— 
‘‘(1) the applicant will— 
‘‘(A) serve as a full-time teacher for a total of not 
less than 4 academic years within 8 years after completing 
the course of study for which the applicant received a 
TEACH Grant under this subpart; 
‘‘(B) teach in a school described in section 465(a)(2)(A); 
‘‘(C) teach in any of the following fields— 
‘‘(i) mathematics; 
‘‘(ii) science; 
‘‘(iii) a foreign language; 
‘‘(iv) bilingual education; 
‘‘(v) special education; 
‘‘(vi) as a reading specialist; or 
‘‘(vii) another field documented as high-need by 
the Federal Government, State government, or local 
educational agency, and approved by the Secretary; 
‘‘(D) submit evidence of such employment in the form 
of a certification by the chief administrative officer of the 
school upon completion of each year of such service; and 
Certification. 
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121 STAT. 790 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(E) comply with the requirements for being a highly 
qualified teacher as defined in section 9101 of the 
Elementary and Secondary Education Act of 1965; and 
‘‘(2) in the event that the applicant is determined to have 
failed or refused to carry out such service obligation, the sum 
of the amounts of any TEACH Grants received by such 
applicant will be treated as a loan and collected from the 
applicant in accordance with subsection (c) and the regulations 
thereunder. 
‘‘(c) REPAYMENT FOR FAILURE TO COMPLETE SERVICE.—In the 
event that any recipient of a grant under this subpart fails or 
refuses to comply with the service obligation in the agreement 
under subsection (b), the sum of the amounts of any TEACH Grants 
received by such recipient shall, upon a determination of such 
a failure or refusal in such service obligation, be treated as a 
Federal Direct Unsubsidized Stafford Loan under part D of title 
IV, and shall be subject to repayment, together with interest thereon 
accruing from the date of the grant award, in accordance with 
terms and conditions specified by the Secretary in regulations under 
this subpart. 
‘‘SEC. 420O. PROGRAM PERIOD AND FUNDING. 
‘‘Beginning on July 1, 2008, there shall be available to the 
Secretary to carry out this subpart, from funds not otherwise appro-
priated, such sums as may be necessary to provide TEACH Grants 
in accordance with this subpart to each eligible applicant.’’. 
TITLE II—STUDENT LOAN BENEFITS, 
TERMS, AND CONDITIONS 
SEC. 201. INTEREST RATE REDUCTIONS. 
(a) FFEL INTEREST RATES.— 
(1) Section 427A(l) (20 U.S.C. 1077a(l)) is amended by 
adding at the end the following new paragraph: 
‘‘(4) REDUCED
RATES
FOR
UNDERGRADUATE
SUBSIDIZED 
LOANS.—Notwithstanding subsection (h) and paragraph (1) of 
this subsection, with respect to any loan to an undergraduate 
student made, insured, or guaranteed under this part (other 
than a loan made pursuant to section 428B, 428C, or 428H) 
for which the first disbursement is made on or after July 
1, 2006, and before July 1, 2012, the applicable rate of interest 
shall be as follows: 
‘‘(A) For a loan for which the first disbursement is 
made on or after July 1, 2006, and before July 1, 2008, 
6.8 percent on the unpaid principal balance of the loan. 
‘‘(B) For a loan for which the first disbursement is 
made on or after July 1, 2008, and before July 1, 2009, 
6.0 percent on the unpaid principal balance of the loan. 
‘‘(C) For a loan for which the first disbursement is 
made on or after July 1, 2009, and before July 1, 2010, 
5.6 percent on the unpaid principal balance of the loan. 
‘‘(D) For a loan for which the first disbursement is 
made on or after July 1, 2010, and before July 1, 2011, 
4.5 percent on the unpaid principal balance of the loan. 
20 USC 1070g–3. 
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121 STAT. 791 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(E) For a loan for which the first disbursement is 
made on or after July 1, 2011, and before July 1, 2012, 
3.4 percent on the unpaid principal balance of the loan.’’. 
(2) 
SPECIAL
ALLOWANCE
CROSS
REFERENCE.—Section 
438(b)(2)(I)(ii)(II) (20 U.S.C. 1087–1(b)(2)(I)(ii)(II)) is amended 
by striking ‘‘section 427A(l)(1)’’ and inserting ‘‘section 427A(l)(1) 
or (l)(4)’’. 
(b) DIRECT LOAN INTEREST RATES.—Section 455(b)(7) (20 U.S.C. 
1087e(b)(7)) is amended by adding at the end the following new 
subparagraph: 
‘‘(D) REDUCED RATES FOR UNDERGRADUATE FDSL.—Not-
withstanding the preceding paragraphs of this subsection 
and subparagraph (A) of this paragraph, for Federal Direct 
Stafford Loans made to undergraduate students for which 
the first disbursement is made on or after July 1, 2006, 
and before July 1, 2012, the applicable rate of interest 
shall be as follows: 
‘‘(i) For a loan for which the first disbursement 
is made on or after July 1, 2006, and before July 
1, 2008, 6.8 percent on the unpaid principal balance 
of the loan. 
‘‘(ii) For a loan for which the first disbursement 
is made on or after July 1, 2008, and before July 
1, 2009, 6.0 percent on the unpaid principal balance 
of the loan. 
‘‘(iii) For a loan for which the first disbursement 
is made on or after July 1, 2009, and before July 
1, 2010, 5.6 percent on the unpaid principal balance 
of the loan. 
‘‘(iv) For a loan for which the first disbursement 
is made on or after July 1, 2010, and before July 
1, 2011, 4.5 percent on the unpaid principal balance 
of the loan. 
‘‘(v) For a loan for which the first disbursement 
is made on or after July 1, 2011, and before July 
1, 2012, 3.4 percent on the unpaid principal balance 
of the loan.’’. 
SEC. 202. STUDENT LOAN DEFERMENT FOR CERTAIN MEMBERS OF 
THE ARMED FORCES. 
(a) 
FEDERAL
FAMILY
EDUCATION
LOANS.—Section 
428(b)(1)(M)(iii) (20 U.S.C. 1078(b)(1)(M)(iii)) is amended— 
(1) in the matter preceding subclause (I), by striking ‘‘not 
in excess of 3 years’’; 
(2) in subclause (II), by striking ‘‘; or’’ and inserting a 
comma; and 
(3) by adding at the end the following: 
‘‘and for the 180-day period following the demobiliza-
tion date for the service described in subclause (I) 
or (II); or’’. 
(b) 
DIRECT
LOANS.—Section 
455(f)(2)(C) 
(20 
U.S.C. 
1087e(f)(2)(C)) is amended— 
(1) in the matter preceding clause (i), by striking ‘‘not 
in excess of 3 years’’; 
(2) in clause (ii), by striking ‘‘; or’’ and inserting a comma; 
and 
(3) by adding at the end the following: 
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121 STAT. 792 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘and for the 180-day period following the demobilization 
date for the service described in clause (i) or (ii); or’’. 
(c) 
PERKINS
LOANS.—Section 
464(c)(2)(A)(iii) 
(20 
U.S.C. 
1087dd(c)(2)(A)(iii)) is amended— 
(1) in the matter preceding subclause (I), by striking ‘‘not 
in excess of 3 years’’; 
(2) in subclause (II), by striking the semicolon and inserting 
a comma; and 
(3) by adding at the end the following: 
‘‘and for the 180-day period following the demobilization date for 
the service described in subclause (I) or (II);’’. 
(d) APPLICABILITY.—Section 8007(f) of the Higher Education 
Reconciliation Act of 2005 (20 U.S.C. 1078 note) is amended by 
striking ‘‘loans for which’’ and all that follows through the period 
at the end and inserting ‘‘all loans under title IV of the Higher 
Education Act of 1965.’’. 
SEC. 203. INCOME-BASED REPAYMENT. 
(a) AMENDMENT.—Part G of title IV (20 U.S.C. 1088 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 493C. INCOME-BASED REPAYMENT. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) EXCEPTED PLUS LOAN.—The term ‘excepted PLUS loan’ 
means a loan under section 428B, or a Federal Direct PLUS 
Loan, that is made, insured, or guaranteed on behalf of a 
dependent student. 
‘‘(2) EXCEPTED CONSOLIDATION LOAN.—The term ‘excepted 
consolidation loan’ means a consolidation loan under section 
428C, or a Federal Direct Consolidation Loan, if the proceeds 
of such loan were used to the discharge the liability on an 
excepted PLUS loan. 
‘‘(3) PARTIAL FINANCIAL HARDSHIP.—The term ‘partial finan-
cial hardship’, when used with respect to a borrower, means 
that for such borrower— 
‘‘(A) the annual amount due on the total amount of 
loans made, insured, or guaranteed under part B or D 
(other than an excepted PLUS loan or excepted consolida-
tion loan) to a borrower as calculated under the standard 
repayment 
plan 
under 
section 
428(b)(9)(A)(i) 
or 
455(d)(1)(A), based on a 10-year repayment period; exceeds 
‘‘(B) 15 percent of the result obtained by calculating, 
on at least an annual basis, the amount by which— 
‘‘(i) the borrower’s, and the borrower’s spouse’s 
(if applicable), adjusted gross income; exceeds 
‘‘(ii) 150 percent of the poverty line applicable to 
the borrower’s family size as determined under section 
673(2) of the Community Services Block Grant Act 
(42 U.S.C. 9902(2)). 
‘‘(b) INCOME-BASED REPAYMENT PROGRAM AUTHORIZED.—Not-
withstanding any other provision of this Act, the Secretary shall 
carry out a program under which— 
‘‘(1) a borrower of any loan made, insured, or guaranteed 
under part B or D (other than an excepted PLUS loan or 
excepted consolidation loan) who has a partial financial hard-
ship (whether or not the borrower’s loan has been submitted 
to a guaranty agency for default aversion or is already in 
default) may elect, during any period the borrower has the 
20 USC 1098e. 
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121 STAT. 793 
PUBLIC LAW 110–84—SEPT. 27, 2007 
partial financial hardship, to have the borrower’s aggregate 
monthly payment for all such loans not exceed the result 
described in subsection (a)(3)(B) divided by 12; 
‘‘(2) the holder of such a loan shall apply the borrower’s 
monthly payment under this subsection first toward interest 
due on the loan, next toward any fees due on the loan, and 
then toward the principal of the loan; 
‘‘(3) any interest due and not paid under paragraph (2)— 
‘‘(A) shall, on subsidized loans, be paid by the Secretary 
for a period of not more than 3 years after the date of 
the borrower’s election under paragraph (1), except that 
such period shall not include any period during which 
the borrower is in deferment due to an economic hardship 
described in section 435(o); and 
‘‘(B) be capitalized— 
‘‘(i) in the case of a subsidized loan, subject to 
subparagraph (A), at the time the borrower— 
‘‘(I) ends the election to make income-based 
repayment under this subsection; or 
‘‘(II) begins making payments of not less than 
the amount specified in paragraph (6)(A); or 
‘‘(ii) in the case of an unsubsidized loan, at the 
time the borrower— 
‘‘(I) ends the election to make income-based 
repayment under this subsection; or 
‘‘(II) begins making payments of not less than 
the amount specified in paragraph (6)(A); 
‘‘(4) any principal due and not paid under paragraph (2) 
shall be deferred; 
‘‘(5) the amount of time the borrower makes monthly pay-
ments under paragraph (1) may exceed 10 years; 
‘‘(6) if the borrower no longer has a partial financial hard-
ship or no longer wishes to continue the election under this 
subsection, then— 
‘‘(A) the maximum monthly payment required to be 
paid for all loans made to the borrower under part B 
or D (other than an excepted PLUS loan or excepted consoli-
dation loan) shall not exceed the monthly amount cal-
culated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based 
on a 10-year repayment period, when the borrower first 
made the election described in this subsection; and 
‘‘(B) the amount of time the borrower is permitted 
to repay such loans may exceed 10 years; 
‘‘(7) the Secretary shall repay or cancel any outstanding 
balance of principal and interest due on all loans made under 
part B or D (other than a loan under section 428B or a Federal 
Direct PLUS Loan) to a borrower who— 
‘‘(A) at any time, elected to participate in income-based 
repayment under paragraph (1); and 
‘‘(B) for a period of time prescribed by the Secretary, 
not to exceed 25 years, meets 1 or more of the following 
requirements— 
‘‘(i) has made reduced monthly payments under 
paragraph (1) or paragraph (6); 
‘‘(ii) has made monthly payments of not less than 
the 
monthly 
amount 
calculated 
under 
section 
428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year 
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121 STAT. 794 
PUBLIC LAW 110–84—SEPT. 27, 2007 
repayment period, when the borrower first made the 
election described in this subsection; 
‘‘(iii) has made payments of not less than the pay-
ments required under a standard repayment plan 
under section 428(b)(9)(A)(i) or 455(d)(1)(A) with a 
repayment period of 10 years; 
‘‘(iv) has made payments under an income-contin-
gent repayment plan under section 455(d)(1)(D); or 
‘‘(v) has been in deferment due to an economic 
hardship described in section 435(o); 
‘‘(8) a borrower who is repaying a loan made under part 
B or D pursuant to income-based repayment may elect, at 
any time, to terminate repayment pursuant to income-based 
repayment and repay such loan under the standard repayment 
plan; and 
‘‘(9) the special allowance payment to a lender calculated 
under section 438(b)(2)(I), when calculated for a loan in repay-
ment under this section, shall be calculated on the principal 
balance of the loan and on any accrued interest unpaid by 
the borrower in accordance with this section. 
‘‘(c) ELIGIBILITY DETERMINATIONS.—The Secretary shall estab-
lish procedures for annually determining the borrower’s eligibility 
for income-based repayment, including verification of a borrower’s 
annual income and the annual amount due on the total amount 
of loans made, insured, or guaranteed under part B or D (other 
than an excepted PLUS loan or excepted consolidation loan), and 
such other procedures as are necessary to effectively implement 
income-based repayment under this section. The Secretary shall 
consider, but is not limited to, the procedures established in accord-
ance with section 455(e)(1) or in connection with income sensitive 
repayment 
schedules 
under 
section 
428(b)(9)(A)(iii) 
or 
428C(b)(1)(E).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 428C (20 U.S.C. 1078–3) is amended— 
(A) in subsection (a)(3)(B)(i), by amending subclause 
(V) to read as follows: 
‘‘(V) an individual may obtain a subsequent 
consolidation loan under section 455(g) only— 
‘‘(aa) for the purposes of obtaining an 
income contingent repayment plan, and only 
if the loan has been submitted to the guaranty 
agency for default aversion; or 
‘‘(bb) for the purposes of using the public 
service loan forgiveness program under section 
455(m).’’; 
(B) in the first sentence of subsection (b)(5), by 
inserting ‘‘or chooses to obtain a consolidation loan for 
the purposes of using the public service loan forgiveness 
program offered under section 455(m),’’ after ‘‘from such 
a lender,’’; and 
(C) in the second sentence of such subsection, by 
inserting before the period the following: ‘‘, except that 
if a borrower intends to be eligible to use the public service 
loan forgiveness program under section 455(m), such loan 
shall be repaid using one of the repayment options 
described in section 455(m)(1)(A)’’. 
Procedures. 
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121 STAT. 795 
PUBLIC LAW 110–84—SEPT. 27, 2007 
(2) Section 428C (20 U.S.C. 1078–3) (as amended by para-
graph (1) of this subsection) is amended— 
(A) in subsection (a)(3)(B)(i)(V)(aa)— 
(i) by striking ‘‘an income contingent repayment 
plan,’’ and inserting ‘‘income contingent repayment or 
income-based repayment,’’; and 
(ii) by inserting ‘‘or if the loan is already in default’’ 
before the semicolon; 
(B) in the first sentence of subsection (b)(5), by 
inserting ‘‘or income-based repayment terms’’ after ‘‘income- 
sensitive repayment terms’’; and 
(C) in the second sentence of such subsection, by 
inserting ‘‘, pursuant to income-based repayment under 
section 493C,’’ after ‘‘part D of this title’’. 
(3) Section 455(d)(1)(D) (20 U.S.C. 1087e(d)(1)(D)) is 
amended by inserting ‘‘made on behalf of a dependent student’’ 
after ‘‘PLUS loan’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall be effective on July 
1, 2009. 
(2) EXCEPTION.—The amendments made by subsection 
(b)(1) shall be effective on July 1, 2008. 
SEC. 204. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE DUTY. 
Part G of title IV is further amended by adding after section 
493C (as added by section 203 of this Act) the following new 
section: 
‘‘SEC. 493D. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE 
DUTY. 
‘‘(a) DEFERRAL
OF
LOAN
REPAYMENT
FOLLOWING
ACTIVE 
DUTY.—In addition to any deferral of repayment of a loan made 
under this title pursuant to section 428(b)(1)(M)(iii), 455(f)(2)(C), 
or 464(c)(2)(A)(iii), a borrower of a loan under this title who is 
a member of the National Guard or other reserve component of 
the Armed Forces of the United States, or a member of such 
Armed Forces in a retired status, is called or ordered to active 
duty, and is enrolled, or was enrolled within six months prior 
to the activation, in a program of instruction at an eligible institu-
tion, shall be eligible for a deferment during the 13 months following 
the conclusion of such service, except that a deferment under this 
subsection shall expire upon the borrower’s return to enrolled stu-
dent status. 
‘‘(b) ACTIVE DUTY.—Notwithstanding section 481(d), in this sec-
tion, the term ‘active duty’ has the meaning given such term in 
section 101(d)(1) of title 10, United States Code, except that such 
term— 
‘‘(1) does not include active duty for training or attendance 
at a service school; but 
‘‘(2) includes, in the case of members of the National Guard, 
active State duty.’’. 
SEC. 205. MAXIMUM REPAYMENT PERIOD. 
Section 455(e) (20 U.S.C. 1087e(e)) is amended by adding at 
the end the following: 
20 USC 1098f. 
National Guard. 
Armed Forces. 
20 USC 1078–3 
note. 
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121 STAT. 796 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(7) MAXIMUM
REPAYMENT
PERIOD.—In calculating the 
extended period of time for which an income contingent repay-
ment plan under this subsection may be in effect for a borrower, 
the Secretary shall include all time periods during which a 
borrower of loans under part B, part D, or part E— 
‘‘(A) is not in default on any loan that is included 
in the income contingent repayment plan; and 
‘‘(B)(i) is in deferment due to an economic hardship 
described in section 435(o); 
‘‘(ii) makes monthly payments under paragraph (1) 
or (6) of section 493C(b); 
‘‘(iii) makes monthly payments of not less than the 
monthly amount calculated under section 428(b)(9)(A)(i) 
or subsection (d)(1)(A), based on a 10-year repayment 
period, when the borrower first made the election described 
in section 493C(b)(1); 
‘‘(iv) makes payments of not less than the payments 
required under a standard repayment plan under section 
428(b)(9)(A)(i) or subsection (d)(1)(A) with a repayment 
period of 10 years; or 
‘‘(v) makes payments under an income contingent 
repayment plan under subsection (d)(1)(D).’’. 
TITLE III—FEDERAL FAMILY 
EDUCATION LOAN PROGRAM 
SEC. 301. GUARANTY AGENCY COLLECTION RETENTION. 
Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 1078(c)(6)(A)(ii)) 
is amended to read as follows: 
‘‘(ii) an amount equal to 24 percent of such pay-
ments for use in accordance with section 422B, except 
that— 
‘‘(I) beginning October 1, 2003 and ending Sep-
tember 30, 2007, this clause shall be applied by 
substituting ‘23 percent’ for ‘24 percent’; and 
‘‘(II) beginning October 1, 2007, this clause 
shall be applied by substituting ‘16 percent’ for 
‘24 percent’.’’. 
SEC. 302. ELIMINATION OF EXCEPTIONAL PERFORMER STATUS FOR 
LENDERS. 
(a) ELIMINATION OF STATUS.—Part B of title IV (20 U.S.C. 
1071 et seq.) is amended by striking section 428I (20 U.S.C. 1078– 
9). 
(b) CONFORMING AMENDMENTS.—Part B of title IV is further 
amended— 
(1) in section 428(c)(1) (20 U.S.C. 1078(c)(1))— 
(A) by striking subparagraph (D); and 
(B) by redesignating subparagraphs (E) through (H) 
as subparagraphs (D) through (G), respectively; and 
(2) in section 438(b)(5) (20 U.S.C. 1087–1(b)(5)), by striking 
the matter following subparagraph (B). 
(c) EFFECTIVE DATE.—The amendments made by subsections 
(a) and (b) shall be effective on October 1, 2007, except that section 
428I of the Higher Education Act of 1965 (as in effect on the 
day before the date of enactment of this Act) shall apply to eligible 
Applicability. 
20 USC 1078 
note. 
Applicability. 
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121 STAT. 797 
PUBLIC LAW 110–84—SEPT. 27, 2007 
lenders that received a designation under subsection (a) of such 
section prior to October 1, 2007, for the remainder of the year 
for which the designation was made. 
SEC. 303. REDUCTION OF LENDER INSURANCE PERCENTAGE. 
(a) AMENDMENT.—Subparagraph (G) of section 428(b)(1) (20 
U.S.C. 1078(b)(1)(G)) is amended to read as follows: 
‘‘(G) insures 95 percent of the unpaid principal of loans 
insured under the program, except that— 
‘‘(i) such program shall insure 100 percent of the 
unpaid principal of loans made with funds advanced 
pursuant to section 428(j) or 439(q); and 
‘‘(ii) notwithstanding the preceding provisions of 
this subparagraph, such program shall insure 100 per-
cent of the unpaid principal amount of exempt claims 
as defined in subsection (c)(1)(G);’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall be effective on October 1, 2012, and shall apply with respect 
to loans made on or after such date. 
SEC. 304. DEFINITIONS. 
Section 435 (20 U.S.C. 1085) is amended— 
(1) in subsection (o)(1)— 
(A) in subparagraph (A)(ii)— 
(i) by striking ‘‘100 percent of the poverty line 
for a family of 2’’ and inserting ‘‘150 percent of the 
poverty line applicable to the borrower’s family size’’; 
and 
(ii) by inserting ‘‘or’’ after the semicolon; 
(B) by striking subparagraph (B); and 
(C) by redesignating subparagraph (C) as subpara-
graph (B); 
(2) in subsection (o)(2), by striking ‘‘(1)(C)’’ and inserting 
‘‘(1)(B)’’; and 
(3) by adding at the end the following: 
‘‘(p) ELIGIBLE NOT-FOR-PROFIT HOLDER.— 
‘‘(1) DEFINITION.—Subject to the limitations in paragraph 
(2) and the prohibition in paragraph (3), the term ‘eligible 
not-for-profit holder’ means an eligible lender under subsection 
(d) (except for an eligible lender described in subsection 
(d)(1)(E)) that requests a special allowance payment under sec-
tion 438(b)(2)(I)(vi)(II) or a payment under section 771 and 
that is— 
‘‘(A) a State, or a political subdivision, authority, 
agency, or other instrumentality thereof, including such 
entities that are eligible to issue bonds described in section 
1.103–1 of title 26, Code of Federal Regulations, or section 
144(b) of the Internal Revenue Code of 1986; 
‘‘(B) an entity described in section 150(d)(2) of such 
Code that has not made the election described in section 
150(d)(3) of such Code; 
‘‘(C) an entity described in section 501(c)(3) of such 
Code; or 
‘‘(D) a trustee acting as an eligible lender on behalf 
of a State, political subdivision, authority, agency, 
instrumentality, or other entity described in subparagraph 
(A), (B), or (C). 
‘‘(2) LIMITATIONS.— 
20 USC 1078 
note. 
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121 STAT. 798 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(A) EXISTING ON DATE OF ENACTMENT.— 
‘‘(i) IN GENERAL.—An eligible lender shall not be 
an eligible not-for-profit holder under this Act unless 
such lender— 
‘‘(I) 
was 
a 
State, 
political 
subdivision, 
authority, agency, instrumentality, or other entity 
described in paragraph (1)(A), (B), or (C) that was, 
on the date of the enactment of the College Cost 
Reduction and Access Act, acting as an eligible 
lender under subsection (d) (other than an eligible 
lender described in subsection (d)(1)(E)); or 
‘‘(II) is a trustee acting as an eligible lender 
under this Act on behalf of such a State, political 
subdivision, authority, agency, instrumentality, or 
other entity described in subclause (I) of this 
clause. 
‘‘(ii) EXCEPTION.—Notwithstanding clause (i), a 
State may elect, in accordance with regulations of the 
Secretary, to waive the requirements this subpara-
graph for a new not-for-profit holder determined by 
the State to be necessary to carry out a public purpose 
of such State, except that a State may not make such 
election with respect the requirements of clause (i)(II). 
‘‘(B) NO FOR-PROFIT OWNERSHIP OR CONTROL.—No polit-
ical subdivision, authority, agency, instrumentality, or 
other entity described in paragraph (1)(A), (B), or (C) shall 
be an eligible not-for-profit holder under this Act if such 
entity is owned or controlled, in whole or in part, by a 
for-profit entity. 
‘‘(C) SOLE
OWNERSHIP
OF
LOANS
AND
INCOME.—No 
State, political subdivision, authority, agency, instrumen-
tality, or other entity described in paragraph (1)(A), (B), 
or (C) shall be an eligible not-for-profit holder under this 
Act with respect to any loan, or income from any loan, 
unless the State, political subdivision, authority, agency, 
instrumentality, or other entity described in paragraph 
(1)(A), (B), or (C) is the sole owner of the beneficial interest 
in such loan and the income from such loan. 
‘‘(D) TRUSTEE COMPENSATION LIMITATIONS.—A trustee 
described in paragraph (1)(D) shall not receive compensa-
tion as consideration for acting as an eligible lender on 
behalf of an entity described in described in paragraph 
(1)(A), (B), or (C) in excess of reasonable and customary 
fees. 
‘‘(E) RULE OF CONSTRUCTION.—For purposes of sub-
paragraphs (B), (C), and (D) of this paragraph, a State, 
political subdivision, authority, agency, instrumentality, or 
other entity described in paragraph (1)(A), (B), or (C) shall 
not— 
‘‘(i) be deemed to be owned or controlled, in whole 
or in part, by a for-profit entity, or 
‘‘(ii) lose its status as the sole owner of a beneficial 
interest in a loan and the income from a loan by 
that 
political 
subdivision, 
authority, 
agency, 
instrumentality, or other entity, 
by granting a security interest in, or otherwise pledging 
as collateral, such loan, or the income from such loan, 
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121 STAT. 799 
PUBLIC LAW 110–84—SEPT. 27, 2007 
to secure a debt obligation in the operation of an arrange-
ment described in paragraph (1)(D). 
‘‘(3) PROHIBITION.—In the case of a loan for which the 
special 
allowance 
payment 
is 
calculated 
under 
section 
438(b)(2)(I)(vi)(II) and that is sold by the eligible not-for-profit 
holder holding the loan to an entity that is not an eligible 
not-for-profit holder under this Act, the special allowance pay-
ment for such loan shall, beginning on the date of the sale, 
no longer be calculated under section 438(b)(2)(I)(vi)(II) and 
shall be calculated under section 438(b)(2)(I)(vi)(I) instead. 
‘‘(4) REGULATIONS.—Not later than 1 year after the date 
of enactment of the College Cost Reduction and Access Act, 
the Secretary shall promulgate regulations in accordance with 
the provisions of this subsection.’’. 
SEC. 305. SPECIAL ALLOWANCES. 
(a) REDUCTION OF LENDER SPECIAL ALLOWANCE PAYMENTS.— 
Section 438(b)(2)(I) (20 U.S.C. 1087–1(b)(2)(I)) is amended— 
(1) in clause (i), by striking ‘‘clauses (ii), (iii), and (iv)’’ 
and inserting ‘‘the following clauses’’; 
(2) in clause (v)(III), by striking ‘‘clauses (ii), (iii), and 
(iv)’’ and inserting ‘‘clauses (ii), (iii), (iv), and (vi)’’; and 
(3) by adding at the end the following: 
‘‘(vi) REDUCTION
FOR
LOANS
DISBURSED
ON
OR 
AFTER OCTOBER 1, 2007.—With respect to a loan on 
which the applicable interest rate is determined under 
section 427A(l) and for which the first disbursement 
of principal is made on or after October 1, 2007, the 
special allowance payment computed pursuant to this 
subparagraph shall be computed— 
‘‘(I) for loans held by an eligible lender not 
described in subclause (II)— 
‘‘(aa) by substituting ‘1.79 percent’ for 
‘2.34 percent’ each place the term appears in 
this subparagraph; 
‘‘(bb) by substituting ‘1.19 percent’ for 
‘1.74 percent’ in clause (ii); 
‘‘(cc) by substituting ‘1.79 percent’ for ‘2.64 
percent’ in clause (iii); and 
‘‘(dd) by substituting ‘2.09 percent’ for 
‘2.64 percent’ in clause (iv); and 
‘‘(II) for loans held by an eligible not-for-profit 
holder— 
‘‘(aa) by substituting ‘1.94 percent’ for 
‘2.34 percent’ each place the term appears in 
this subparagraph; 
‘‘(bb) by substituting ‘1.34 percent’ for 
‘1.74 percent’ in clause (ii); 
‘‘(cc) by substituting ‘1.94 percent’ for ‘2.64 
percent’ in clause (iii); and 
‘‘(dd) by substituting ‘2.24 percent’ for 
‘2.64 percent’ in clause (iv).’’. 
(b) INCREASED LOAN FEES FROM LENDERS.—Paragraph (2) of 
section 438(d) (20 U.S.C. 1087–1(d)(2)) is amended to read as fol-
lows: 
Deadline. 
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121 STAT. 800 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(2) AMOUNT OF LOAN FEES.—The amount of the loan fee 
which shall be deducted under paragraph (1), but which may 
not be collected from the borrower, shall be equal to— 
‘‘(A) except as provided in subparagraph (B), 0.50 per-
cent of the principal amount of the loan with respect to 
any loan under this part for which the first disbursement 
was made on or after October 1, 1993; and 
‘‘(B) 1.0 percent of the principal amount of the loan 
with respect to any loan under this part for which the 
first disbursement was made on or after October 1, 2007.’’. 
SEC. 306. ACCOUNT MAINTENANCE FEES. 
Section 458(b) (20 U.S.C. 1087h(b)) is amended by striking 
‘‘0.10 percent’’ and inserting ‘‘0.06 percent’’. 
TITLE IV—LOAN FORGIVENESS 
SEC. 401. LOAN FORGIVENESS FOR PUBLIC SERVICE EMPLOYEES. 
Section 455 (20 U.S.C. 1087e) is further amended by adding 
at the end the following: 
‘‘(m) REPAYMENT PLAN FOR PUBLIC SERVICE EMPLOYEES.— 
‘‘(1) IN GENERAL.—The Secretary shall cancel the balance 
of interest and principal due, in accordance with paragraph 
(2), on any eligible Federal Direct Loan not in default for 
a borrower who— 
‘‘(A) has made 120 monthly payments on the eligible 
Federal Direct Loan after October 1, 2007, pursuant to 
any one or a combination of the following— 
‘‘(i) payments under an income-based repayment 
plan under section 493C; 
‘‘(ii) payments under a standard repayment plan 
under subsection (d)(1)(A), based on a 10-year repay-
ment period; 
‘‘(iii) monthly payments under a repayment plan 
under subsection (d)(1) or (g) of not less than the 
monthly amount calculated under subsection (d)(1)(A), 
based on a 10-year repayment period; or 
‘‘(iv) payments under an income contingent repay-
ment plan under subsection (d)(1)(D); and 
‘‘(B)(i) is employed in a public service job at the time 
of such forgiveness; and 
‘‘(ii) has been employed in a public service job during 
the period in which the borrower makes each of the 120 
payments described in subparagraph (A). 
‘‘(2) LOAN
CANCELLATION
AMOUNT.—After the conclusion 
of the employment period described in paragraph (1), the Sec-
retary shall cancel the obligation to repay the balance of prin-
cipal and interest due as of the time of such cancellation, 
on the eligible Federal Direct Loans made to the borrower 
under this part. 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) ELIGIBLE
FEDERAL
DIRECT
LOAN.—The term 
‘eligible Federal Direct Loan’ means a Federal Direct Staf-
ford Loan, Federal Direct PLUS Loan, or Federal Direct 
Unsubsidized Stafford Loan, or a Federal Direct Consolida-
tion Loan. 
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121 STAT. 801 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(B) PUBLIC
SERVICE
JOB.—The term ‘public service 
job’ means— 
‘‘(i) a full-time job in emergency management, 
government, military service, public safety, law 
enforcement, public health, public education (including 
early childhood education), social work in a public child 
or family service agency, public interest law services 
(including prosecution or public defense or legal 
advocacy in low-income communities at a nonprofit 
organization), public child care, public service for 
individuals with disabilities, public service for the 
elderly, public library sciences, school-based library 
sciences and other school-based services, or at an 
organization that is described in section 501(c)(3) of 
the Internal Revenue Code of 1986 and exempt from 
taxation under section 501(a) of such Code; or 
‘‘(ii) teaching as a full-time faculty member at a 
Tribal College or University as defined in section 316(b) 
and other faculty teaching in high-needs areas, as 
determined by the Secretary.’’. 
TITLE V—FEDERAL PERKINS LOANS 
SEC. 501. DISTRIBUTION OF LATE COLLECTIONS. 
Section 466(b) (20 U.S.C. 1087ff(b)) is amended by striking 
‘‘March 31, 2012’’ and inserting ‘‘October 1, 2012’’. 
TITLE VI—NEED ANALYSIS 
SEC. 601. SUPPORT FOR WORKING STUDENTS. 
(a) DEPENDENT
STUDENTS.—Subparagraph (D) of section 
475(g)(2) (20 U.S.C. 1087oo(g)(2)(D)) is amended to read as follows: 
‘‘(D) an income protection allowance of the following 
amount (or a successor amount prescribed by the Secretary 
under section 478)— 
‘‘(i) for academic year 2009–2010, $3,750; 
‘‘(ii) for academic year 2010–2011, $4,500; 
‘‘(iii) for academic year 2011–2012, $5,250; and 
‘‘(iv) for academic year 2012–2013, $6,000;’’. 
(b) INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER 
THAN
A SPOUSE.—Clause (iv) of section 476(b)(1)(A) (20 U.S.C. 
1087pp(b)(1)(A)) is amended to read as follows: 
‘‘(iv) an income protection allowance of the fol-
lowing amount (or a successor amount prescribed by 
the Secretary under section 478)— 
‘‘(I) for single or separated students, or mar-
ried students where both are enrolled pursuant 
to subsection (a)(2)— 
‘‘(aa) for academic year 2009–2010, $7,000; 
‘‘(bb) for academic year 2010–2011, $7,780; 
‘‘(cc) for academic year 2011–2012, $8,550; 
and 
‘‘(dd) for academic year 2012–2013, $9,330; 
and 
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121 STAT. 802 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(II) for married students where 1 is enrolled 
pursuant to subsection (a)(2)— 
‘‘(aa) 
for 
academic 
year 
2009–2010, 
$11,220; 
‘‘(bb) 
for 
academic 
year 
2010–2011, 
$12,460; 
‘‘(cc) 
for 
academic 
year 
2011–2012, 
$13,710; and 
‘‘(dd) 
for 
academic 
year 
2012–2013, 
$14,960;’’. 
(c) INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN 
A SPOUSE.—Paragraph (4) of section 477(b) (20 U.S.C. 1087qq(b)) 
is amended to read as follows: 
‘‘(4) INCOME PROTECTION ALLOWANCE.—The income protec-
tion allowance is determined by the tables described in subpara-
graphs (A) through (D) (or a successor table prescribed by 
the Secretary under section 478). 
‘‘(A) ACADEMIC
YEAR
2009–2010.—For academic year 
2009–2010, the income protection allowance is determined 
by the following table: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
1 
2 
3 
4 
5 
For each 
addi-
tional 
subtract: 
2 
$17,720 
$14,690 
3 
22,060 
19,050 
$16,020 
4 
27,250 
24,220 
21,210 
$18,170 
5 
32,150 
29,120 
26,100 
23,070 
$20,060 
6 
37,600 
34,570 
31,570 
28,520 
25,520 
$3,020 
For each 
additional 
add: 
4,240 
4,240 
4,240 
4,240 
4,240 
‘‘(B) ACADEMIC
YEAR
2010–2011.—For academic year 
2010–2011, the income protection allowance is determined 
by the following table: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
1 
2 
3 
4 
5 
For each 
addi-
tional 
subtract: 
2 
$19,690 
$16,330 
3 
24,510 
21,160 
$17,800 
4 
30,280 
26,910 
23,560 
$20,190 
5 
35,730 
32,350 
29,000 
25,640 
$22,290 
6 
41,780 
38,410 
35,080 
31,690 
28,350 
$3,350 
For each 
additional 
add: 
4,710 
4,710 
4,710 
4,710 
4,710 
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121 STAT. 803 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(C) ACADEMIC
YEAR
2011–2012.—For academic year 
2011–2012, the income protection allowance is determined 
by the following table: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
1 
2 
3 
4 
5 
For each 
addi-
tional 
subtract: 
2 
$21,660 
$17,960 
3 
26,960 
23,280 
$19,580 
4 
33,300 
29,600 
25,920 
$22,210 
5 
39,300 
35,590 
31,900 
28,200 
$24,520 
6 
45,950 
42,250 
38,580 
34,860 
31,190 
$3,690 
For each 
additional 
add: 
5,180 
5,180 
5,180 
5,180 
5,180 
‘‘(D) ACADEMIC
YEAR
2012–2013.—For academic year 
2012–2013, the income protection allowance is determined 
by the following table: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
1 
2 
3 
4 
5 
For each 
addi-
tional 
subtract: 
2 
$23,630 
$19,590 
3 
29,420 
25,400 
$21,360 
4 
36,330 
32,300 
28,280 
$24,230 
5 
42,870 
38,820 
34,800 
30,770 
$26,750 
6 
50,130 
46,100 
42,090 
38,030 
34,020 
$4,020
For each 
additional 
add: 
5,660 
5,660 
5,660 
5,660 
5,660 
’’. 
(d) UPDATED TABLES AND AMOUNTS.—Section 478(b) (20 U.S.C. 
1087rr(b)) is amended— 
(1) by striking paragraph (1) and inserting the following: 
‘‘(1) REVISED TABLES.— 
‘‘(A) IN GENERAL.—For each academic year after aca-
demic year 2008–2009, the Secretary shall publish in the 
Federal Register a revised table of income protection allow-
ances for the purpose of sections 475(c)(4) and 477(b)(4), 
subject to subparagraphs (B) and (C). 
‘‘(B) TABLE FOR INDEPENDENT STUDENTS.— 
‘‘(i) ACADEMIC
YEARS
2009–2010
THROUGH
2012– 
2013.—For each of the academic years 2009–2010 
through 2012–2013, the Secretary shall not develop 
a revised table of income protection allowances under 
section 477(b)(4) and the table specified for such aca-
demic year under subparagraphs (A) through (D) of 
such section shall apply. 
‘‘(ii) OTHER ACADEMIC YEARS.—For each academic 
year after academic year 2012–2013, the Secretary 
Federal Register, 
publication. 
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121 STAT. 804 
PUBLIC LAW 110–84—SEPT. 27, 2007 
shall develop the revised table of income protection 
allowances by increasing each of the dollar amounts 
contained in the table of income protection allowances 
under section 477(b)(4)(D) by a percentage equal to 
the estimated percentage increase in the Consumer 
Price Index (as determined by the Secretary) between 
December 2011 and the December next preceding the 
beginning of such academic year, and rounding the 
result to the nearest $10. 
‘‘(C) TABLE
FOR
PARENTS.—For each academic year 
after academic year 2008–2009, the Secretary shall develop 
the revised table of income protection allowances under 
section 475(c)(4) by increasing each of the dollar amounts 
contained in the table by a percentage equal to the esti-
mated 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 paragraph (2), by striking ‘‘shall be developed’’ and 
all that follows through the period at the end and inserting 
‘‘shall be developed for each academic year after academic year 
2012–2013, by increasing each of the dollar amounts contained 
in such section for academic year 2012–2013 by a percentage 
equal to the estimated percentage increase in the Consumer 
Price Index (as determined by the Secretary) between December 
2011 and the December next preceding the beginning of such 
academic year, and rounding the result to the nearest $10.’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall be effective on July 1, 2009. 
SEC. 602. SIMPLIFIED NEEDS TEST AND AUTOMATIC ZERO IMPROVE-
MENTS. 
(a) SIMPLIFIED NEEDS TEST.—Section 479 (20 U.S.C. 1087ss) 
is amended— 
(1) in subsection (b)— 
(A) in paragraph (1)(A)(i)— 
(i) in subclause (II), by striking ‘‘or’’ after the semi-
colon; 
(ii) by redesignating subclause (III) as subclause 
(IV); 
(iii) by inserting after subclause (II) the following: 
‘‘(III) 1 of whom is a dislocated worker; or’’; 
and 
(iv) in subclause (IV) (as redesignated by clause 
(ii)), by striking ‘‘12-month’’ and inserting ‘‘24-month’’; 
and 
(B) in paragraph (1)(B)(i)— 
(i) in subclause (II), by striking ‘‘or’’ after the semi-
colon; 
(ii) by redesignating subclause (III) as subclause 
(IV); 
(iii) by inserting after subclause (II) the following: 
‘‘(III) 1 of whom is a dislocated worker; or’’; 
and 
(iv) in subclause (IV) (as redesignated by clause 
(ii)), by striking ‘‘12-month’’ and inserting ‘‘24-month’’; 
20 USC 1087oo 
note. 
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121 STAT. 805 
PUBLIC LAW 110–84—SEPT. 27, 2007 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) in subparagraph (A)— 
(I) in clause (ii), by striking ‘‘or’’ after the 
semicolon; 
(II) by redesignating clause (iii) as clause (iv); 
(III) by inserting after clause (ii) the following: 
‘‘(iii) 1 of whom is a dislocated worker; or’’; and 
(IV) in clause (iv) (as redesignated by sub-
clause (II)), by striking ‘‘12-month’’ and inserting 
‘‘24-month’’; and 
(ii) in subparagraph (B), by striking ‘‘$20,000’’ and 
inserting ‘‘$30,000’’; and 
(B) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) in clause (ii), by striking ‘‘or’’ after the 
semicolon; 
(II) by redesignating clause (iii) as clause (iv); 
(III) by inserting after clause (ii) the following: 
‘‘(iii) 1 of whom is a dislocated worker; or’’; and 
(IV) in clause (iv) (as redesignated by sub-
clause (II)), by striking ‘‘12-month’’ and inserting 
‘‘24-month’’; and 
(ii) in subparagraph (B), by striking ‘‘$20,000’’ and 
inserting ‘‘$30,000’’; and 
(C) in the flush matter following paragraph (2)(B), 
by adding at the end the following: ‘‘The Secretary shall 
annually adjust the income level necessary to qualify an 
applicant for the zero expected family contribution. The 
income level shall be adjusted according to increases in 
the Consumer Price Index, as defined in section 478(f).’’; 
and 
(3) in subsection (d)— 
(A) by redesignating paragraphs (1) through (6) as 
subparagraphs (A) through (F), respectively and moving 
the margins of such subparagraphs 2 ems to the right; 
and 
(B) by striking ‘‘(d) DEFINITION’’ and all that follows 
through ‘‘the term’’ and inserting the following: 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) DISLOCATED
WORKER.—The term ‘dislocated worker’ 
has the meaning given the term in section 101 of the Workforce 
Investment Act of 1998 (29 U.S.C. 2801). 
‘‘(2) MEANS-TESTED
FEDERAL
BENEFIT
PROGRAM.—The 
term’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall be effective on July 1, 2009. 
SEC. 603. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS. 
(a) AMENDMENTS.—The third sentence of section 479A(a) (20 
U.S.C. 1087tt(a)) is amended— 
(1) by inserting ‘‘or an independent student’’ after ‘‘family 
member’’; 
(2) by inserting ‘‘a family member who is a dislocated 
worker (as defined in section 101 of the Workforce Investment 
Act of 1998),’’ before ‘‘the number of parents’’; and 
20 USC 1087ss 
note. 
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121 STAT. 806 
PUBLIC LAW 110–84—SEPT. 27, 2007 
(3) by inserting ‘‘a change in housing status that results 
in an individual being homeless (as defined in section 103 
of the McKinney-Vento Homeless Assistance Act),’’ after ‘‘under 
section 487,’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on July 1, 2009. 
SEC. 604. DEFINITIONS. 
(a) IN GENERAL.—Section 480 (20 U.S.C. 1087vv) is amended— 
(1) in subsection (a)(2)— 
(A) by striking ‘‘and no portion’’ and inserting ‘‘no 
portion’’; and 
(B) by inserting ‘‘and no distribution from any qualified 
education benefit described in subsection (f)(3) that is not 
subject to Federal income tax,’’ after ‘‘1986,’’; 
(2) by striking subsection (b) and inserting the following: 
‘‘(b) UNTAXED INCOME AND BENEFITS.— 
‘‘(1) The term ‘untaxed income and benefits’ means— 
‘‘(A) child support received; 
‘‘(B) workman’s compensation; 
‘‘(C) veteran’s benefits such as death pension, depend-
ency, and indemnity compensation, but excluding veterans’ 
education benefits as defined in subsection (c); 
‘‘(D) interest on tax-free bonds; 
‘‘(E) housing, food, and other allowances (excluding 
rent subsidies for low-income housing) for military, clergy, 
and others (including cash payments and cash value of 
benefits); 
‘‘(F) cash support or any money paid on the student‘s 
behalf, except, for dependent students, funds provided by 
the student’s parents; 
‘‘(G) untaxed portion of pensions; 
‘‘(H) payments to individual retirement accounts and 
Keogh accounts excluded from income for Federal income 
tax purposes; and 
‘‘(I) any other untaxed income and benefits, such as 
Black Lung Benefits, Refugee Assistance, or railroad retire-
ment benefits, or benefits received through participation 
in employment and training activities under title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.). 
‘‘(2) The term ‘untaxed income and benefits’ shall not 
include the amount of additional child tax credit claimed for 
Federal income tax purposes.’’; 
(3) in subsection (d)— 
(A) by redesignating paragraphs (1), (2), (3) through 
(6), and (7) as subparagraphs (A), (B), (D) through (G), 
and (I), respectively, and indenting appropriately; 
(B) by striking ‘‘The term’’ and inserting the following: 
‘‘(1) DEFINITION.—The term’’; 
(C) by striking subparagraph (B) (as redesignated by 
subparagraph (A)) and inserting the following: 
‘‘(B) is an orphan, in foster care, or a ward of the 
court, at any time when the individual is 13 years of 
age or older; 
‘‘(C) is an emancipated minor or is in legal guardian-
ship as determined by a court of competent jurisdiction 
in the individual’s State of legal residence;’’; 
20 USC 1087tt 
note. 
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121 STAT. 807 
PUBLIC LAW 110–84—SEPT. 27, 2007 
(D) in subparagraph (G) (as redesignated by subpara-
graph (A)), by striking ‘‘or’’ after the semicolon; 
(E) by inserting after subparagraph (G) (as redesig-
nated by subparagraph (A)) the following: 
‘‘(H) has been verified during the school year in which 
the application is submitted as either an unaccompanied 
youth who is a homeless child or youth (as such terms 
are defined in section 725 of the McKinney-Vento Homeless 
Assistance Act), or as unaccompanied, at risk of homeless-
ness, and self-supporting, by— 
‘‘(i) a local educational agency homeless liaison, 
designated pursuant to section 722(g)(1)(J)(ii) of the 
McKinney-Vento Homeless Assistance Act; 
‘‘(ii) the director of a program funded under the 
Runaway and Homeless Youth Act or a designee of 
the director; 
‘‘(iii) the director of a program funded under sub-
title B of title IV of the McKinney-Vento Homeless 
Assistance Act (relating to emergency shelter grants) 
or a designee of the director; or 
‘‘(iv) a financial aid administrator; or’’; and 
(F) by adding at the end the following: 
‘‘(2) SIMPLIFYING THE DEPENDENCY OVERRIDE PROCESS.— 
A financial aid administrator may make a determination of 
independence under paragraph (1)(I) based upon a documented 
determination of independence that was previously made by 
another financial aid administrator under such paragraph in 
the same award year.’’; 
(4) in subsection (e)— 
(A) in paragraph (3), by striking ‘‘and’’ after the semi-
colon; 
(B) in paragraph (4), by striking the period at the 
end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(5) special combat pay.’’; 
(5) in subsection (f), by striking paragraph (3) and inserting 
the following: 
‘‘(3) A qualified education benefit shall be considered an 
asset of— 
‘‘(A) the student if the student is an independent stu-
dent; or 
‘‘(B) the parent if the student is a dependent student, 
regardless of whether the owner of the account is the 
student or the parent.’’; 
(6) in subsection (j)— 
(A) in paragraph (2), by inserting ‘‘, or a distribution 
that is not includable in gross income under section 529 
of such Code, under another prepaid tuition plan offered 
by a State, or under a Coverdell education savings account 
under section 530 of such Code,’’ after ‘‘1986’’; and 
(B) by adding at the end the following: 
‘‘(4) Notwithstanding paragraph (1), special combat pay 
shall not be treated as estimated financial assistance for pur-
poses of section 471(3).’’; and 
(7) by adding at the end the following: 
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121 STAT. 808 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(n) SPECIAL COMBAT PAY.—The term ‘special combat pay’ 
means pay received by a member of the Armed Forces because 
of exposure to a hazardous situation.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall be effective on July 1, 2009. 
TITLE VII—COMPETITIVE LOAN 
AUCTION PILOT PROGRAM 
SEC. 701. COMPETITIVE LOAN AUCTION PILOT PROGRAM. 
Title IV (20 U.S.C. 1070 et seq.) is further amended by adding 
at the end the following: 
‘‘PART I—COMPETITIVE LOAN AUCTION PILOT 
PROGRAM 
‘‘SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE FEDERAL PLUS LOAN.—The term ‘eligible Fed-
eral PLUS Loan’ means a loan described in section 428B made 
to a parent of a dependent student who is a new borrower 
on or after July 1, 2009. 
‘‘(2) ELIGIBLE LENDER.—The term ‘eligible lender’ has the 
meaning given the term in section 435. 
‘‘(b) PILOT PROGRAM.—The Secretary shall carry out a pilot 
program under which the Secretary establishes a mechanism for 
an auction of eligible Federal PLUS Loans in accordance with 
this subsection. The pilot program shall meet the following require-
ments: 
‘‘(1) PLANNING AND IMPLEMENTATION.—During the period 
beginning on the date of enactment of this section and ending 
on June 30, 2009, the Secretary shall plan and implement 
the pilot program under this subsection. During the planning 
and implementation, the Secretary shall consult with other 
Federal agencies with knowledge of, and experience with, auc-
tion programs, including the Federal Communication Commis-
sion and the Department of the Treasury. 
‘‘(2) ORIGINATION
AND
DISBURSEMENT; APPLICABILITY
OF 
SECTION 428B.—Beginning on July 1, 2009, the Secretary shall 
arrange for the origination and disbursement of all eligible 
Federal PLUS Loans in accordance with the provisions of this 
subsection and the provisions of section 428B that are not 
inconsistent with this subsection. 
‘‘(3) LOAN ORIGINATION MECHANISM.—The Secretary shall 
establish a loan origination auction mechanism that meets 
the following requirements: 
‘‘(A) AUCTION FOR EACH STATE.—The Secretary admin-
isters an auction under this paragraph for each State, 
under which eligible lenders compete to originate eligible 
Federal PLUS Loans under this paragraph at all institu-
tions of higher education within such State. 
‘‘(B) PREQUALIFICATION PROCESS.—The Secretary estab-
lishes a prequalification process for eligible lenders desiring 
to participate in an auction under this paragraph that 
contains, at a minimum— 
Effective date. 
Effective date. 
Termination 
date. 
20 USC 1099d. 
20 USC 1087vv 
note. 
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121 STAT. 809 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(i) a set of borrower benefits and servicing require-
ments each eligible lender shall meet in order to 
participate in such an auction; and 
‘‘(ii) an assessment of each such eligible lender’s 
capacity, including capital capacity, to participate effec-
tively. 
‘‘(C) TIMING
AND
ORIGINATION.—Each State auction 
takes place every 2 years, and the eligible lenders with 
the winning bids for the State are the only eligible lenders 
permitted to originate eligible Federal PLUS Loans made 
under this paragraph for the cohort of students at the 
institutions of higher education within the State until the 
students graduate from or leave the institutions of higher 
education. 
‘‘(D) BIDS.—Each eligible lender’s bid consists of the 
amount of the special allowance payment (after the applica-
tion of section 438(b)(2)(I)(v)) the eligible lender proposes 
to accept from the Secretary with respect to the eligible 
Federal PLUS Loans made under this paragraph in lieu 
of the amount determined under section 438(b)(2)(I). 
‘‘(E) MAXIMUM
BID.—The maximum bid allowable 
under this paragraph shall not exceed the amount of the 
special allowance payable on eligible Federal PLUS Loans 
made under this paragraph computed under section 
438(b)(2)(I) (other than clauses (ii), (iii), (iv), and (vi) of 
such section), except that for purposes of the computation 
under this subparagraph, section 438(b)(2)(I)(i)(III) shall 
be applied by substituting ‘1.79 percent’ for ‘2.34 percent’. 
‘‘(F) WINNING BIDS.—The winning bids for each State 
auction shall be the 2 bids containing the lowest and the 
second lowest proposed special allowance payments, subject 
to subparagraph (E). 
‘‘(G) AGREEMENT
WITH
SECRETARY.—Each eligible 
lender having a winning bid under subparagraph (F) enters 
into an agreement with the Secretary under which the 
eligible lender— 
‘‘(i) agrees to originate eligible Federal PLUS 
Loans under this paragraph to each borrower who— 
‘‘(I) seeks an eligible Federal PLUS Loan 
under this paragraph to enable a dependent stu-
dent to attend an institution of higher education 
within the State; 
‘‘(II) is eligible for an eligible Federal PLUS 
Loan; and 
‘‘(III) elects to borrow from the eligible lender; 
and 
‘‘(ii) agrees to accept a special allowance payment 
(after the application of section 438(b)(2)(I)(v)) from 
the Secretary with respect to the eligible Federal PLUS 
Loans originated under clause (i) in the amount pro-
posed in the second lowest winning bid described in 
subparagraph (F) for the applicable State auction. 
‘‘(H) SEALED
BIDS; CONFIDENTIALITY.—All bids are 
sealed and the Secretary keeps the bids confidential, 
including following the announcement of the winning bids. 
‘‘(I) ELIGIBLE LENDER OF LAST RESORT.— 
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121 STAT. 810 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(i) IN GENERAL.—In the event that there is no 
winning bid under subparagraph (F), the students at 
the institutions of higher education within the State 
that was the subject of the auction shall be served 
by an eligible lender of last resort, as determined by 
the Secretary. 
‘‘(ii) DETERMINATION OF ELIGIBLE LENDER OF LAST 
RESORT.—Prior to the start of any auction under this 
paragraph, eligible lenders that desire to serve as an 
eligible lender of last resort shall submit an application 
to the Secretary at such time and in such manner 
as the Secretary may determine. Such application shall 
include an assurance that the eligible lender will meet 
the 
prequalification 
requirements 
described 
in 
subparagraph (B). 
‘‘(iii) GEOGRAPHIC LOCATION.—The Secretary shall 
identify an eligible lender of last resort for each State. 
‘‘(iv) NOTIFICATION TIMING.—The Secretary shall 
not identify any eligible lender of last resort until 
after the announcement of all the winning bids for 
a State auction for any year. 
‘‘(v) MAXIMUM
SPECIAL
ALLOWANCE.—The Sec-
retary is authorized to set a special allowance payment 
that shall be payable to a lender of last resort for 
a State under this subparagraph, which special allow-
ance payment shall be kept confidential, including fol-
lowing the announcement of winning bids. The Sec-
retary shall set such special allowance payment so 
that it incurs the lowest possible cost to the Federal 
Government, taking into consideration the lowest bid 
that was submitted in an auction for such State and 
the lowest bid submitted in a similar State, as deter-
mined by the Secretary. 
‘‘(J) GUARANTEE
AGAINST
LOSSES.—The Secretary 
guarantees the eligible Federal PLUS Loans made under 
this paragraph against losses resulting from the default 
of a parent borrower in an amount equal to 99 percent 
of the unpaid principal and interest due on the loan. 
‘‘(K) LOAN
FEES.—The Secretary shall not collect a 
loan fee under section 438(d) with respect to an eligible 
Federal Plus Loan originated under this paragraph. 
‘‘(L) CONSOLIDATION.— 
‘‘(i) IN GENERAL.—An eligible lender who is per-
mitted to originate eligible Federal PLUS Loans for 
a borrower under this paragraph shall have the option 
to consolidate such loans into 1 loan. 
‘‘(ii) NOTIFICATION.—In the event a borrower with 
eligible Federal PLUS Loans made under this para-
graph wishes to consolidate the loans, the borrower 
shall notify the eligible lender who originated the loans 
under this paragraph. 
‘‘(iii) LIMITATION ON ELIGIBLE LENDER OPTION TO 
CONSOLIDATE.—The option described in clause (i) shall 
not apply if— 
‘‘(I) the borrower includes in the notification 
in clause (ii) verification of consolidation terms 
and conditions offered by an eligible lender other 
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121 STAT. 811 
PUBLIC LAW 110–84—SEPT. 27, 2007 
than the eligible lender described in clause (i); 
and 
‘‘(II) not later than 10 days after receiving 
such notification from the borrower, the eligible 
lender described in clause (i) does not agree to 
match such terms and conditions, or provide more 
favorable terms and conditions to such borrower 
than the offered terms and conditions described 
in subclause (I). 
‘‘(iv) CONSOLIDATION OF ADDITIONAL LOANS.—If a 
borrower has a Federal Direct PLUS Loan or a loan 
made on behalf of a dependent student under section 
428B and seeks to consolidate such loan with an 
eligible Federal PLUS Loan made under this para-
graph, then the eligible lender that originated the bor-
rower’s loan under this paragraph may include in the 
consolidation under this subparagraph a Federal Direct 
PLUS Loan or a loan made on behalf of a dependent 
student under section 428B, but only if— 
‘‘(I) in the case of a Federal Direct PLUS Loan, 
the eligible lender agrees, not later than 10 days 
after the borrower requests such consolidation 
from the lender, to match the consolidation terms 
and conditions that would otherwise be available 
to the borrower if the borrower consolidated such 
loans in the loan program under part D; or 
‘‘(II) in the case of a loan made on behalf 
of a dependent student under section 428B, the 
eligible lender agrees, not later than 10 days after 
the borrower requests such consolidation from the 
lender, to match the consolidation terms and condi-
tions offered by an eligible lender other than the 
eligible lender that originated the borrower’s loans 
under this paragraph. 
‘‘(v) SPECIAL ALLOWANCE ON CONSOLIDATION LOANS 
THAT INCLUDE LOANS MADE UNDER THIS PARAGRAPH.— 
The applicable special allowance payment for loans 
consolidated under this paragraph shall be equal to 
the lesser of— 
‘‘(I) the weighted average of the special allow-
ance payment on such loans, except that in calcu-
lating such weighted average the Secretary shall 
exclude any Federal Direct PLUS Loan included 
in the consolidation; or 
‘‘(II) the result of— 
‘‘(aa) the average of the bond equivalent 
rates of the quotes of the 3-month commercial 
paper (financial) rates in effect for each of 
the days in such quarter as reported by the 
Federal Reserve in Publication H–15 (or its 
successor) for such 3-month period; plus 
‘‘(bb) 1.59 percent. 
‘‘(vi) INTEREST PAYMENT REBATE FEE.—Any loan 
under section 428C consolidated under this paragraph 
shall not be subject to the interest payment rebate 
fee under section 428C(f).’’. 
Deadline. 
Deadline. 
Deadline. 
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121 STAT. 812 
PUBLIC LAW 110–84—SEPT. 27, 2007 
TITLE VIII—PARTNERSHIP GRANTS 
SEC. 801. COLLEGE ACCESS CHALLENGE GRANT PROGRAM. 
Title VII (20 U.S.C. 1133 et seq.) is amended by adding at 
the end the following new part: 
‘‘PART E—COLLEGE ACCESS CHALLENGE 
GRANT PROGRAM 
‘‘SEC. 771. COLLEGE ACCESS CHALLENGE GRANT PROGRAM. 
‘‘(a) AUTHORIZATION AND APPROPRIATION.—There are authorized 
to be appropriated, and there are appropriated, to carry out this 
section $66,000,000 for each of the fiscal years 2008 and 2009. 
The authority to award grants under this section shall expire at 
the end of fiscal year 2009. 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) GRANTS
AUTHORIZED.—From amounts appropriated 
under subsection (a), the Secretary shall award grants, from 
allotments under subsection (c), to States (and to philanthropic 
organization, as appropriate under paragraph (3)) having 
applications approved under subsection (d), to enable the State 
(or philanthropic organization) to pay the Federal share of 
the costs of carrying out the activities and services described 
in subsection (f). 
‘‘(2) FEDERAL SHARE; NON-FEDERAL SHARE.— 
‘‘(A) FEDERAL
SHARE.—The amount of the Federal 
share under this section for a fiscal year shall be equal 
to 2⁄3 of the costs of the activities and services described 
in subsection (f) that are carried out under the grant. 
‘‘(B) NON-FEDERAL SHARE.—The amount of the non- 
Federal share under this section shall be equal to 1⁄3 of 
the costs of the activities and services described in sub-
section (f). The non-Federal share may be in cash or in- 
kind, and may be provided from State resources, contribu-
tions from private organizations, or both. 
‘‘(3) REDUCTION FOR FAILURE TO PAY NON-FEDERAL SHARE.— 
If a State fails to provide the full non-Federal share required 
under this subsection, the Secretary shall reduce the amount 
of the grant payment under this section proportionately, and 
may award the proportionate reduction amount of the grant 
directly to a philanthropic organization, as defined in subsection 
(i), to carry out this section. 
‘‘(4) TEMPORARY
INELIGIBILITY
FOR
SUBSEQUENT
PAY-
MENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall determine a 
grantee to be temporarily ineligible to receive a grant pay-
ment under this section for a fiscal year if— 
‘‘(i) the grantee fails to submit an annual report 
pursuant to subsection (h) for the preceding fiscal year; 
or 
‘‘(ii) the Secretary determines, based on informa-
tion in such annual report, that the grantee is not 
effectively meeting the conditions described under sub-
section (g) and the goals of the application under sub-
section (d). 
Expiration date. 
20 USC 1141. 
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121 STAT. 813 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(B) REINSTATEMENT.—If the Secretary determines that 
a grantee is ineligible under subparagraph (A), the Sec-
retary may enter into an agreement with the grantee set-
ting forth the terms and conditions under which the grantee 
may regain eligibility to receive payments under this sec-
tion. 
‘‘(c) DETERMINATION OF ALLOTMENT.— 
‘‘(1) AMOUNT
OF
ALLOTMENT.—Subject to paragraph (2), 
in making grant payments to grantees under this section, the 
allotment to each grantee for a fiscal year shall be equal to 
the sum of— 
‘‘(A) the amount that bears the same relation to 50 
percent of the amount appropriated under subsection (a) 
for such fiscal year as the number of residents in the 
State aged 5 through 17 who are living below the poverty 
line applicable to the resident’s family size (as determined 
under section 673(2) of the Community Service Block Grant 
Act) bears to the total number of such residents in all 
States; and 
‘‘(B) the amount that bears the same relation to 50 
percent of the amount appropriated under subsection (a) 
for such fiscal year as the number of residents in the 
State aged 15 through 44 who are living below the poverty 
line applicable to the individual’s family size (as determined 
under section 673(2) of the Community Service Block Grant 
Act) bears to the total number of such residents in all 
States. 
‘‘(2) MINIMUM
AMOUNT.—The allotment for each State 
under this section for a fiscal year shall not be an amount 
that is less than 0.5 percent of the total amount appropriated 
under subsection (a) for such fiscal year. 
‘‘(d) SUBMISSION AND CONTENTS OF APPLICATION.— 
‘‘(1) IN GENERAL.—For each fiscal year for which a grantee 
desires a grant payment under subsection (b), the State agency 
with jurisdiction over higher education, or another agency des-
ignated by the Governor or chief executive of the State to 
administer the program under this section, or a philanthropic 
organization, in accordance with subsection (b)(3), shall submit 
an application to the Secretary at such time, in such manner, 
and containing the information described in paragraph (2). 
‘‘(2) APPLICATION.—An application submitted under para-
graph (1) shall include the following: 
‘‘(A) A description of the grantee’s capacity to admin-
ister the grant under this section and report annually 
to the Secretary on the activities and services described 
in subsection (f). 
‘‘(B) A description of the grantee’s plan for using the 
grant funds to meet the requirements of subsections (f) 
and (g), including plans for how the grantee will make 
special efforts to— 
‘‘(i) provide such benefits to students in the State 
that are underrepresented in postsecondary education; 
or 
‘‘(ii) in the case of a philanthropic organization 
that operates in more than one State, provide benefits 
to such students in each such State for which the 
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121 STAT. 814 
PUBLIC LAW 110–84—SEPT. 27, 2007 
philanthropic organization is receiving grant funds 
under this section. 
‘‘(C) A description of how the grantee will provide 
or coordinate the provision of the non-Federal share from 
State resources or private contributions. 
‘‘(D) A description of— 
‘‘(i) the structure that the grantee has in place 
to administer the activities and services described in 
subsection (f); or 
‘‘(ii) the plan to develop such administrative 
capacity. 
‘‘(e) SUBGRANTS
TO
NONPROFIT
ORGANIZATIONS.—A State 
receiving a payment under this section may elect to make a 
subgrant to one or more nonprofit organizations in the State, 
including an eligible not-for-profit holder (as defined in section 
435(p) of the Higher Education Act of 1965, as amended by section 
303 of this Act), or a partnership of such organizations, to carry 
out activities or services described in subsection (f), if the nonprofit 
organization or partnership— 
‘‘(1) was in existence on the day before the date of the 
enactment of this Act; and 
‘‘(2) as of such day, was participating in activities and 
services related to increasing access to higher education, such 
as those activities and services described in subsection (f). 
‘‘(f) ALLOWABLE USES.— 
‘‘(1) IN GENERAL.—Subject to paragraph (3), a grantee may 
use a grant payment under this section only for the following 
activities and services, pursuant to the conditions under sub-
section (g): 
‘‘(A) Information for students and families regarding— 
‘‘(i) the benefits of a postsecondary education; 
‘‘(ii) postsecondary education opportunities; 
‘‘(iii) planning for postsecondary education; and 
‘‘(iv) career preparation. 
‘‘(B) Information on financing options for postsecondary 
education and activities that promote financial literacy and 
debt management among students and families. 
‘‘(C) Outreach activities for students who may be at 
risk of not enrolling in or completing postsecondary edu-
cation. 
‘‘(D) Assistance in completion of the Free Application 
for Federal Student Aid or other common financial 
reporting form under section 483(a) of the Higher Edu-
cation Act of 1965. 
‘‘(E) Need-based grant aid for students. 
‘‘(F) Professional development for guidance counselors 
at middle schools and secondary schools, and financial aid 
administrators and college admissions counselors at institu-
tions of higher education, to improve such individuals’ 
capacity to assist students and parents with— 
‘‘(i) understanding— 
‘‘(I) entrance requirements for admission to 
institutions of higher education; and 
‘‘(II) State eligibility requirements for Aca-
demic Competitiveness Grants or National SMART 
Grants under section 401A, and other financial 
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121 STAT. 815 
PUBLIC LAW 110–84—SEPT. 27, 2007 
assistance that is dependent upon a student’s 
coursework; 
‘‘(ii) applying to institutions of higher education; 
‘‘(iii) applying for Federal student financial assist-
ance and other State, local, and private student finan-
cial assistance and scholarships; 
‘‘(iv) activities that increase students’ ability to 
successfully complete the coursework required for a 
postsecondary degree, including activities such as 
tutoring or mentoring; and 
‘‘(v) activities to improve secondary school students’ 
preparedness for postsecondary entrance examinations. 
‘‘(G) Student loan cancellation or repayment (as 
applicable), or interest rate reductions, for borrowers who 
are employed in a high-need geographical area or a high- 
need profession in the State, as determined by the State. 
‘‘(2) PROHIBITED USES.—Funds made available under this 
section shall not be used to promote any lender’s loans. 
‘‘(3) USE
OF
FUNDS
FOR
ADMINISTRATIVE
PURPOSES.—A 
grantee may use not more than 6 percent of the total amount 
of the sum of the Federal share provided under this section 
and the non-Federal share required under this section for 
administrative purposes relating to the grant under this section. 
‘‘(g) SPECIAL CONDITIONS.— 
‘‘(1) AVAILABILITY TO STUDENTS AND FAMILIES.—A grantee 
receiving a grant payment under this section shall— 
‘‘(A) make the activities and services described in sub-
paragraphs (A) through (F) of subsection (f)(1) that are 
funded under the payment available to all qualifying stu-
dents and families in the State; 
‘‘(B) allow students and families to participate in the 
activities and services without regard to— 
‘‘(i) the postsecondary institution in which the stu-
dent enrolls; 
‘‘(ii) the type of student loan the student receives; 
‘‘(iii) the servicer of such loan; or 
‘‘(iv) the student’s academic performance; 
‘‘(C) not charge any student or parent a fee or addi-
tional charge to participate in the activities or services; 
and 
‘‘(D) in the case of an activity providing grant aid, 
not require a student to meet any condition other than 
eligibility for Federal financial assistance under title IV 
of the Higher Education Act of 1965, except as provided 
for in the loan cancellation or repayment or interest rate 
reductions described in subsection (f)(1)(G). 
‘‘(2) PRIORITY.—A grantee receiving a grant payment under 
this section shall, in carrying out any activity or service 
described in subsection (f)(1) with the grant funds, prioritize 
students and families who are living below the poverty line 
applicable to the individual’s family size (as determined under 
section 673(2) of the Community Service Block Grant Act). 
‘‘(3) DISCLOSURES.— 
‘‘(A) ORGANIZATIONAL DISCLOSURES.—In the case of a 
State that has chosen to make a payment to an eligible 
not-for-profit holder in the State in accordance with sub-
section (e), the holder shall clearly and prominently indicate 
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121 STAT. 816 
PUBLIC LAW 110–84—SEPT. 27, 2007 
the name of the holder and the nature of the holder’s 
work in connection with any of the activities carried out, 
or any information or services provided, with such funds. 
‘‘(B) INFORMATIONAL
DISCLOSURES.—Any information 
about financing options for higher education provided 
through an activity or service funded under this section 
shall— 
‘‘(i) include information to students and the stu-
dents’ parents of the availability of Federal, State, 
local, institutional, and other grants and loans for post-
secondary education; and 
‘‘(ii) present information on financial assistance 
for postsecondary education that is not provided under 
title IV of the Higher Education Act of 1965 in a 
manner that is clearly distinct from information on 
student financial assistance under such title. 
‘‘(4) COORDINATION.—A grantee receiving a grant payment 
under this section shall attempt to coordinate the activities 
carried out with the grant payment with any existing activities 
that are similar to such activities, and with any other entities 
that support the existing activities in the State. 
‘‘(h) REPORT.—A grantee receiving a payment under this section 
shall prepare and submit an annual report to the Secretary on 
the activities and services carried out under this section, and on 
the implementation of such activities and services. The report shall 
include— 
‘‘(1) each activity or service that was provided to students 
and families over the course of the year; 
‘‘(2) the cost of providing each activity or service; 
‘‘(3) the number, and percentage, if feasible and applicable, 
of students who received each activity or service; and 
‘‘(4) the total contributions from private organizations 
included in the grantee’s non-Federal share for the fiscal year. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) PHILANTHROPIC
ORGANIZATION.—The term ‘philan-
thropic organization’ means a non-profit organization— 
‘‘(A) that does not receive funds under title IV of the 
Higher Education Act of 1965 or under the Elementary 
and Secondary Education Act of 1965; 
‘‘(B) that is not a local educational agency or an institu-
tion of higher education; 
‘‘(C) that has a demonstrated record of dispersing grant 
aid to underserved populations to ensure access to, and 
participation in, higher education; 
‘‘(D) that is affiliated with an eligible consortia (as 
defined in paragraph (2)) to carry out this section; and 
‘‘(E) the primary purpose of which is to provide finan-
cial aid and support services to students from underrep-
resented populations to increase the number of such stu-
dents who enter and remain in college. 
‘‘(2) ELIGIBLE
CONSORTIA.—The term ‘eligible consortia’ 
means a partnership of 2 or more entities that have agreed 
to work together to carry out this section that— 
‘‘(A) includes— 
‘‘(i) a philanthropic organization, which serves as 
the manager of the consortia; 
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121 STAT. 817 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(ii) a State that demonstrates a commitment to 
ensuring the creation of a Statewide system to address 
the issues of early intervention and financial support 
for eligible students to enter and remain in college; 
and 
‘‘(iii) at the discretion of the philanthropic 
organization described in clause (i), additional part-
ners, including other non-profit organizations, govern-
ment entities (including local municipalities, school dis-
tricts, cities, and counties), institutions of higher edu-
cation, and other public or private programs that pro-
vide mentoring or outreach programs; and 
‘‘(B) conducts activities to assist students with entering 
and remaining in college, which may include— 
‘‘(i) providing need-based grants to students; 
‘‘(ii) providing early notification to low-income stu-
dents of their potential eligibility for Federal financial 
aid (which may include assisting students and families 
with filling out FAFSA forms), as well as other finan-
cial aid and other support available from the eligible 
consortia; 
‘‘(iii) encouraging increased student participation 
in higher education through mentoring or outreach 
programs; and 
‘‘(iv) conducting marketing and outreach efforts 
that are designed to— 
‘‘(I) encourage full participation of students 
in the activities of the consortia that carry out 
this section; and 
‘‘(II) provide the communities impacted by the 
activities of the consortia with a general knowledge 
about the efforts of the consortia. 
‘‘(3) GRANTEE.—The term ‘grantee’ means— 
‘‘(A) a State awarded a grant under this section; or 
‘‘(B) with respect to such a State that has failed to 
meet the non-Federal share requirement of subsection (b), 
a philanthropic organization awarded the proportionate 
reduction amount of such a grant under subsection (b)(3).’’. 
SEC. 802. INVESTMENT IN HISTORICALLY BLACK COLLEGES AND 
UNIVERSITIES AND MINORITY-SERVING INSTITUTIONS. 
Title IV (20 U.S.C. 1070 et seq.) is further amended by adding 
after part I (as added by section 701 of this Act) the following 
new part: 
‘‘PART 
J—STRENGTHENING 
HISTORICALLY 
BLACK COLLEGES AND UNIVERSITIES AND 
OTHER MINORITY-SERVING INSTITUTIONS 
‘‘SEC. 499A. INVESTMENT IN HISTORICALLY BLACK COLLEGES AND 
UNIVERSITIES AND OTHER MINORITY-SERVING INSTITU-
TIONS. 
‘‘(a) ELIGIBLE INSTITUTION.—An institution of higher education 
is eligible to receive funds from the amounts made available under 
this section if such institution is— 
20 USC 1099e. 
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121 STAT. 818 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(1) a part B institution (as defined in section 322 (20 
U.S.C. 1061)); 
‘‘(2) a Hispanic-serving institution (as defined in section 
502 (20 U.S.C. 1101a)); 
‘‘(3) a Tribal College or University (as defined in section 
316 (20 U.S.C. 1059c)); 
‘‘(4) an Alaska Native-serving institution or a Native 
Hawaiian-serving institution (as defined in section 317(b) (20 
U.S.C. 1059d(b))); 
‘‘(5) a Predominantly Black Institution (as defined in sub-
section (c)); 
‘‘(6) an Asian American and Native American Pacific 
Islander-serving institution (as defined in subsection (c)); or 
‘‘(7) a Native American-serving nontribal institution (as 
defined in subsection (c)). 
‘‘(b) NEW INVESTMENT OF FUNDS.— 
‘‘(1) IN GENERAL.—There shall be available to the Secretary 
to carry out this section, from funds not otherwise appropriated, 
$255,000,000 for each of the fiscal years 2008 and 2009. The 
authority to award grants under this section shall expire at 
the end of fiscal year 2009. 
‘‘(2) ALLOCATION AND ALLOTMENT.— 
‘‘(A) IN
GENERAL.—Of the amounts made available 
under paragraph (1) for each fiscal year— 
‘‘(i) $100,000,000 shall be available for allocation 
under subparagraph (B); 
‘‘(ii) $100,000,000 shall be available for allocation 
under subparagraph (C); and 
‘‘(iii) $55,000,000 shall be available for allocation 
under subparagraph (D). 
‘‘(B) HSI STEM
AND
ARTICULATION
PROGRAMS.—The 
amount made available for allocation under this subpara-
graph by subparagraph (A)(i) for any fiscal year shall be 
available for Hispanic-serving Institutions for activities 
described in section 503, with a priority given to applica-
tions that propose— 
‘‘(i) to increase the number of Hispanic and other 
low income students attaining degrees in the fields 
of science, technology, engineering, or mathematics; 
and 
‘‘(ii) to develop model transfer and articulation 
agreements between 2-year Hispanic-serving institu-
tions and 4-year institutions in such fields. 
‘‘(C) ALLOCATION AND ALLOTMENT HBCUS AND PBIS.— 
From the amount made available for allocation under this 
subparagraph by subparagraph (A)(ii) for any fiscal year— 
‘‘(i) 85 percent shall be available to eligible institu-
tions described in subsection (a)(1) and shall be made 
available as grants under section 323 and allotted 
among such institutions under section 324, treating 
such amount, plus the amount appropriated for such 
fiscal year in a regular or supplemental appropriation 
Act to carry out part B of title III, as the amount 
appropriated to carry out part B of title III for purposes 
of allotments under section 324, for use by such institu-
tions with a priority for— 
Expiration date. 
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121 STAT. 819 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(I) activities described in paragraphs (1), (2), 
(4), (5), and (10) of section 323(a); and 
‘‘(II) other activities, consistent with the 
institution’s comprehensive plan and designed to 
increase the institution’s capacity to prepare stu-
dents for careers in the physical or natural 
sciences, 
mathematics, 
computer 
science 
or 
information technology or sciences, engineering, 
language instruction in the less-commonly taught 
languages or international affairs, or nursing or 
allied health professions; and 
‘‘(ii) 15 percent shall be available to eligible institu-
tions described in subsection (a)(5) and shall be avail-
able for a competitive grant program to award 25 
grants of $600,000 annually for programs in any of 
the following areas: 
‘‘(I) science, technology, engineering, or mathe-
matics (STEM); 
‘‘(II) health education; 
‘‘(III) internationalization or globalization; 
‘‘(IV) teacher preparation; or 
‘‘(V) improving educational outcomes of Afri-
can American males. 
‘‘(D) ALLOCATION AND ALLOTMENT TO OTHER MINORITY- 
SERVING INSTITUTIONS.—From the amount made available 
for allocation under this subparagraph by subparagraph 
(A)(iii) for any fiscal year— 
‘‘(i) $30,000,000 for such fiscal year shall be avail-
able to eligible institutions described in subsection 
(a)(3) and shall be made available as grants under 
section 316, treating such $30,000,000 as part of the 
amount appropriated for such fiscal year in a regular 
or supplemental appropriation Act to carry out such 
section, and using such $30,000,000 for purposes 
described in subsection (c) of such section; 
‘‘(ii) $15,000,000 for such fiscal year shall be avail-
able to eligible institutions described in subsection 
(a)(4) and shall be made available as grants under 
section 317, treating such $15,000,000 as part of the 
amount appropriated for such fiscal year in a regular 
or supplemental appropriation Act to carry out such 
section and using such $15,000,000 for purposes 
described in subsection (c) of such section; 
‘‘(iii) $5,000,000 for such fiscal year shall be avail-
able to eligible institutions described in subsection 
(a)(6) for activities described in section 311(c); and 
‘‘(iv) $5,000,000 for such fiscal year shall be avail-
able to eligible institutions described in subsection 
(a)(7)— 
‘‘(I) to plan, develop, undertake, and carry out 
activities to improve and expand such institutions’ 
capacity to serve Native Americans, which may 
include— 
‘‘(aa) the purchase, rental, or lease of sci-
entific or laboratory equipment for educational 
purposes, including instructional and research 
purposes; 
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121 STAT. 820 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(bb) renovation and improvement in 
classroom, library, laboratory, and other 
instructional facilities; 
‘‘(cc) support of faculty exchanges, faculty 
development, and faculty fellowships to assist 
faculty in attaining advanced degrees in the 
faculty’s field of instruction; 
‘‘(dd) curriculum development and aca-
demic instruction; 
‘‘(ee) the purchase of library books, 
periodicals, microfilm, and other educational 
materials; 
‘‘(ff) funds and administrative manage-
ment, and acquisition of equipment for use 
in strengthening funds management; 
‘‘(gg) the joint use of facilities such as 
laboratories and libraries; and 
‘‘(hh) academic tutoring and counseling 
programs and student support services; and 
‘‘(II) to which the Secretary, to the extent pos-
sible and consistent with a competitive process 
under which such grants are awarded, allocates 
funds under this clause to ensure maximum and 
equitable distribution among all such eligible 
institutions. 
‘‘(c) DEFINITIONS.— 
‘‘(1) ASIAN AMERICAN.—The term ‘Asian American’ has the 
meaning given the term ‘Asian’ in the Office of Management 
and Budget’s Standards for Maintaining, Collecting, and Pre-
senting Federal Data on Race and Ethnicity as published on 
October 30, 1997 (62 Fed. Reg. 58789). 
‘‘(2) ASIAN
AMERICAN
AND
NATIVE
AMERICAN
PACIFIC 
ISLANDER-SERVING
INSTITUTION.—The term ‘Asian American 
and Native American Pacific Islander-serving institution’ means 
an institution of higher education that— 
‘‘(A) is an eligible institution under section 312(b); and 
‘‘(B) at the time of application, has an enrollment of 
undergraduate students that is at least 10 percent Asian 
American and Native American Pacific Islander students. 
‘‘(3) ENROLLMENT OF NEEDY STUDENTS.—The term ‘enroll-
ment of needy students’ means the enrollment at an institution 
of higher education with respect to which not less than 50 
percent of the undergraduate students enrolled in an academic 
program leading to a degree— 
‘‘(A) in the second fiscal year preceding the fiscal year 
for which the determination is made, were Federal Pell 
Grant recipients for such year; 
‘‘(B) come from families that receive benefits under 
a means-tested Federal benefit program (as defined in para-
graph (5)); 
‘‘(C) attended a public or nonprofit private secondary 
school— 
‘‘(i) that is in the school district of a local edu-
cational agency that was eligible for assistance under 
part A of title I of the Elementary and Secondary 
Education Act of 1965 for any year during which the 
student attended such secondary school; and 
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121 STAT. 821 
PUBLIC LAW 110–84—SEPT. 27, 2007 
‘‘(ii) which for the purpose of this paragraph and 
for that year was determined by the Secretary (pursu-
ant to regulations and after consultation with the State 
educational agency of the State in which the school 
is located) to be a school in which the enrollment 
of children counted under a measure of poverty 
described in section 1113(a)(5) of such Act exceeds 
30 percent of the total enrollment of such school; or 
‘‘(D) are first-generation college students (as that term 
is defined in section 402A(g)), and a majority of such first- 
generation college students are low-income individuals. 
‘‘(4) LOW-INCOME INDIVIDUAL.—The term ‘low-income indi-
vidual’ has the meaning given such term in section 402A(g). 
‘‘(5) MEANS-TESTED FEDERAL BENEFIT PROGRAM.—The term 
‘means-tested Federal benefit program’ means a program of 
the Federal Government, other than a program under title 
IV, in which eligibility for the programs’ benefits or the amount 
of such benefits are determined on the basis of income or 
resources of the individual or family seeking the benefit. 
‘‘(6) NATIVE AMERICAN.—The term ‘Native American’ means 
an individual who is of a tribe, people, or culture that is 
indigenous to the United States. 
‘‘(7) NATIVE AMERICAN PACIFIC ISLANDER.—The term ‘Native 
American Pacific Islander’ means any descendant of the 
aboriginal people of any island in the Pacific Ocean that is 
a territory or possession of the United States. 
‘‘(8) NATIVE AMERICAN-SERVING NONTRIBAL INSTITUTION.— 
The term ‘Native American-serving nontribal institution’ means 
an institution of higher education that— 
‘‘(A) at the time of application— 
‘‘(i) has an enrollment of undergraduate students 
that is not less than 10 percent Native American stu-
dents; and 
‘‘(ii) is not a Tribal College or University (as 
defined in section 316); and 
‘‘(B) submits to the Secretary such enrollment data 
as may be necessary to demonstrate that the institution 
is described in subparagraph (A), along with such other 
information and data as the Secretary may by regulation 
require. 
‘‘(9) 
PREDOMINANTLY
BLACK
INSTITUTION.—The 
term 
‘Predominantly Black institution’ means an institution of higher 
education that— 
‘‘(A) has an enrollment of needy students as defined 
by paragraph (3); 
‘‘(B) has an average educational and general expendi-
ture which is low, per full-time equivalent undergraduate 
student in comparison with the average educational and 
general expenditure per full-time equivalent undergraduate 
student of institutions of higher education that offer similar 
instruction, except that the Secretary may apply the waiver 
requirements described in section 392(b) to this subpara-
graph in the same manner as the Secretary applies the 
waiver requirements to section 312(b)(1)(B); 
‘‘(C) has an enrollment of undergraduate students— 
‘‘(i) that is at least 40 percent Black American 
students; 
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121 STAT. 822 
PUBLIC LAW 110–84—SEPT. 27, 2007 
LEGISLATIVE HISTORY—H.R. 2669: 
HOUSE REPORTS: Nos. 110–210 (Comm. on Education and Labor) and 110–317 
(Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 153 (2007): 
July 11, considered and passed House. 
July 17, 19, considered and passed Senate, amended. 
Sept. 6, Senate considered conference report. 
Sept. 7, Senate and House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 43 (2007): 
Sept. 27, Presidential remarks. 
‘‘(ii) that is at least 1,000 undergraduate students; 
‘‘(iii) of which not less than 50 percent of the 
undergraduate students enrolled at the institution are 
low-income individuals or first-generation college stu-
dents (as that term is defined in section 402A(g)); 
and 
‘‘(iv) of which not less than 50 percent of the under-
graduate students are enrolled in an educational pro-
gram leading to a bachelor’s or associate’s degree that 
the institution is licensed to award by the State in 
which the institution is located; 
‘‘(D) is legally authorized to provide, and provides 
within the State, an educational program for which the 
institution of higher education awards a bachelor’s degree, 
or in the case of a junior or community college, an associ-
ate’s degree; 
‘‘(E) is accredited by a nationally recognized accrediting 
agency or association determined by the Secretary to be 
a reliable authority as to the quality of training offered, 
or is, according to such an agency or association, making 
reasonable progress toward accreditation; and 
‘‘(F) is not receiving assistance under part B of title 
III.’’. 
Approved September 27, 2007. 
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