Ensuring Continued Access to Student Loans Act of 2008
PL 110-227 (H.R.5715), enacted 05/07/2008

122 STAT. 740 
PUBLIC LAW 110–227—MAY 7, 2008 
Public Law 110–227 
110th Congress 
An Act 
To ensure continued availability of access to the Federal student loan program 
for students and families. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This title may be cited as the ‘‘Ensuring Continued Access 
to Student Loans Act of 2008’’. 
SEC. 2. INCREASING UNSUBSIDIZED STAFFORD LOAN LIMITS FOR 
UNDERGRADUATE STUDENTS. 
(a) AMENDMENTS.—Subsection (d) of section 428H of the Higher 
Education Act of 1965 (20 U.S.C. 1078–8(d)) is amended to read 
as follows: 
‘‘(d) LOAN LIMITS.— 
‘‘(1) IN GENERAL.—Except as provided in paragraphs (2), 
(3), and (4), the annual and aggregate limits for loans under 
this section shall be the same as those established under section 
428(b)(1), less any amount received by such student pursuant 
to the subsidized loan program established under section 428. 
‘‘(2) LIMITS FOR GRADUATE AND PROFESSIONAL STUDENTS.— 
‘‘(A) ANNUAL LIMITS.—The maximum annual amount 
of loans under this section a graduate or professional stu-
dent may borrow in any academic year (as defined in 
section 481(a)(2)) or its equivalent shall be the amount 
determined under paragraph (1), plus— 
‘‘(i) in the case of such a student who is a graduate 
or professional student attending an eligible institu-
tion, $12,000; and 
‘‘(ii) in the case of a graduate student enrolled 
in coursework specified in sections 484(b)(3)(B) and 
484(b)(4)(B), $7,000; 
except in cases where the Secretary determines that a 
higher amount is warranted in order to carry out the 
purpose of this part with respect to students engaged in 
specialized training requiring exceptionally high costs of 
education, but the annual insurable limit per student shall 
not be deemed to be exceeded by a line of credit under 
which actual payments by the lender to the borrower will 
not be made in any years in excess of the annual limit. 
‘‘(B) AGGREGATE
LIMIT.—The maximum aggregate 
amount of loans under this section a student described 
in subparagraph (A) may borrow shall be the amount 
described in paragraph (1), adjusted to reflect the increased 
20 USC 1001 
note. 
Ensuring 
Continued Access 
to Student Loans 
Act of 2008. 
May 7, 2008 
[H.R. 5715] 
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122 STAT. 741 
PUBLIC LAW 110–227—MAY 7, 2008 
annual limits described in subparagraph (A), as prescribed 
by the Secretary by regulation. 
‘‘(3) LIMITS FOR UNDERGRADUATE DEPENDENT STUDENTS.— 
‘‘(A) ANNUAL LIMITS.—The maximum annual amount 
of loans under this section an undergraduate dependent 
student (except an undergraduate dependent student whose 
parents are unable to borrow under section 428B or the 
Federal Direct PLUS Loan Program) may borrow in any 
academic year (as defined in section 481(a)(2)) or its equiva-
lent shall be the sum of the amount determined under 
paragraph (1), plus $2,000. 
‘‘(B) AGGREGATE
LIMITS.—The maximum aggregate 
amount of loans under this section a student described 
in subparagraph (A) may borrow shall be $31,000. 
‘‘(4) LIMITS
FOR
UNDERGRADUATE
INDEPENDENT
STU-
DENTS.— 
‘‘(A) ANNUAL LIMITS.—The maximum annual amount 
of loans under this section an undergraduate independent 
student, or an undergraduate dependent student whose 
parents are unable to borrow under section 428B or the 
Federal Direct PLUS Loan Program, may borrow in any 
academic year (as defined in section 481(a)(2)) or its equiva-
lent shall be the sum of the amount determined under 
paragraph (1), plus— 
‘‘(i) in the case of such a student attending an 
eligible institution who has not completed such stu-
dent’s first 2 years of undergraduate study— 
‘‘(I) $6,000, if such student is enrolled in a 
program whose length is at least one academic 
year in length; or 
‘‘(II) if such student is enrolled in a program 
of undergraduate education which is less than one 
academic year, the maximum annual loan amount 
that such student may receive may not exceed 
the amount that bears the same ratio to the 
amount specified in subclause (I) as the length 
of such program measured in semester, trimester, 
quarter, or clock hours bears to one academic year; 
‘‘(ii) in the case of such a student at an eligible 
institution who has successfully completed such first 
and second years but has not successfully completed 
the remainder of a program of undergraduate edu-
cation— 
‘‘(I) $7,000; or 
‘‘(II) if such student is enrolled in a program 
of undergraduate education, the remainder of 
which is less than one academic year, the max-
imum annual loan amount that such student may 
receive may not exceed the amount that bears 
the same ratio to the amount specified in subclause 
(I) as such remainder measured in semester, tri-
mester, quarter, or clock hours bears to one aca-
demic year; and 
‘‘(iii) in the case of such a student enrolled in 
coursework specified in sections 484(b)(3)(B) and 
484(b)(4)(B), $6,000 for coursework necessary for 
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122 STAT. 742 
PUBLIC LAW 110–227—MAY 7, 2008 
enrollment in an undergraduate degree or certificate 
program. 
‘‘(B) AGGREGATE
LIMITS.—The maximum aggregate 
amount of loans under this section a student described 
in subparagraph (A) may borrow shall be $57,500. 
‘‘(5) CAPITALIZED INTEREST.—Interest capitalized shall not 
be deemed to exceed a maximum aggregate amount determined 
under subparagraph (B) of paragraph (2), (3), or (4).’’. 
(b) STUDENT ELIGIBILITY.—Loan limit increases authorized by 
the amendments made by this section shall be available only to 
students who meet the requirements of section 484(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1091(a)). 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall be effective for loans first disbursed on or after July 1, 2008. 
SEC. 3. GRACE PERIOD FOR PARENT PLUS LOANS. 
(a) AMENDMENT.—Section 428B(d) of the Higher Education Act 
of 1965 (20 U.S.C. 1078–2(d)) is amended by amending paragraphs 
(1) and (2) to read as follows: 
‘‘(1) COMMENCEMENT OF REPAYMENT.—Repayment of prin-
cipal on loans made under this section shall— 
‘‘(A) commence not later than— 
‘‘(i) 60 days after the date such loan is disbursed 
by the lender, except as provided in clause (ii); and 
‘‘(ii) if agreed upon by a parent borrower, the day 
after 6 months after the date the student for whom 
the loan is borrowed ceases to carry at least one- 
half the normal full-time academic workload (as deter-
mined by the institution); and 
‘‘(B) be subject to deferral during any period during 
which the graduate or professional student or the parent 
meets the conditions required for a deferral under section 
427(a)(2)(C) or 428(b)(1)(M). 
‘‘(2) CAPITALIZATION OF INTEREST.— 
‘‘(A) IN GENERAL.—Interest on loans made under this 
section— 
‘‘(i) which accrues prior to the beginning of repay-
ment under paragraph (1)(A)(i), shall be added to the 
principal amount of the loan; and 
‘‘(ii) which accrues prior to the beginning of repay-
ment under paragraph (1)(A)(ii) or during a period 
in which payments of principal are deferred pursuant 
to paragraph (1)(B) shall, if agreed upon by the bor-
rower and the lender— 
‘‘(I) be paid monthly or quarterly; or 
‘‘(II) be added to the principal amount of the 
loan not more frequently than quarterly by the 
lender. 
‘‘(B) INSURABLE
LIMITS.—Capitalization of interest 
under this paragraph shall not be deemed to exceed the 
annual insurable limit on account of the borrower.’’. 
(b) CONFORMING AMENDMENT.—Section 428(b)(7)(C) of such Act 
(20 U.S.C. 1078(b)(7)(C)) is amended by striking ‘‘, 428B,’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall be effective for loans first disbursed on or after July 1, 2008. 
20 USC 1078 
note. 
20 USC 1078–8 
note. 
20 USC 1078–8 
note. 
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122 STAT. 743 
PUBLIC LAW 110–227—MAY 7, 2008 
SEC. 4. SPECIAL RULES FOR PLUS LOANS. 
Section 428B(a)(3) of the Higher Education Act of 1965 (20 
U.S.C. 1078–2(a)(3)) is amended to read as follows: 
‘‘(3) SPECIAL RULES.— 
‘‘(A) PARENT
BORROWERS.—Whenever necessary to 
carry out the provisions of this section, the terms ‘student’ 
and ‘borrower’ as used in this part shall include a parent 
borrower under this section. 
‘‘(B)(i) 
EXTENUATING
CIRCUMSTANCES.—An 
eligible 
lender may determine that extenuating circumstances exist 
under the regulations promulgated pursuant to paragraph 
(1)(A) if, during the period beginning January 1, 2007, 
and ending December 31, 2009, an applicant for a loan 
under this section— 
‘‘(I) is or has been delinquent for 180 days or 
fewer on mortgage loan payments or on medical bill 
payments during such period; and 
‘‘(II) is not and has not been more than 89 days 
delinquent on the repayment of any other debt during 
such period. 
‘‘(ii) DEFINITION OF MORTGAGE LOAN.—In this subpara-
graph, the term ‘mortgage loan’ means an extension of 
credit to a borrower that is secured by the primary resi-
dence of the borrower. 
‘‘(iii) 
RULE
OF
CONSTRUCTION.—Nothing 
in 
this 
subparagraph shall be construed to limit an eligible lender’s 
authority under the regulations promulgated pursuant to 
paragraph (1)(A) to determine that extenuating cir-
cumstances exist.’’. 
SEC. 5. LENDER-OF-LAST-RESORT. 
(a) IN GENERAL.—Section 428(j) of the Higher Education Act 
of 1965 (20 U.S.C. 1078(j)) is amended— 
(1) in the first sentence of paragraph (1), by striking ‘‘stu-
dents eligible to receive interest benefits paid on their behalf 
under subsection (a) of this section who are otherwise unable 
to obtain loans under this part’’ and inserting ‘‘eligible students 
and parents who are otherwise unable to obtain loans under 
this part (except for consolidation loans under section 428C) 
or who attend an institution of higher education in the State 
that is designated under paragraph (4)’’; 
(1) in paragraph (1), by inserting after the second sentence 
the following: ‘‘No loan under section 428, 428B, or 428H that 
is made pursuant to this subsection shall be made with interest 
rates, origination or default fees, or other terms and conditions 
that are more favorable to the borrower than the maximum 
interest rates, origination or default fees, or other terms and 
conditions applicable to that type of loan under this part.’’; 
(2) in paragraph (2)(B), by inserting ‘‘, in the case of stu-
dents and parents applying for loans under this subsection 
because of an inability to otherwise obtain loans under this 
part (except for consolidation loans under section 428C),’’ after 
‘‘lender, nor’’; 
(3) in paragraph (3)(C)— 
(A) in the first sentence, by inserting ‘‘or designates 
an institution of higher education for participation in the 
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122 STAT. 744 
PUBLIC LAW 110–227—MAY 7, 2008 
program under this subsection under paragraph (4)’’ after 
‘‘under this part’’; and 
(B) in the third sentence, by inserting ‘‘or to eligible 
borrowers who attend an institution in the State that is 
designated under paragraph (4)’’ after ‘‘problems’’; and 
(4) by adding at the end the following: 
‘‘(4) INSTITUTION-WIDE STUDENT QUALIFICATION.—Upon the 
request of an institution of higher education and pursuant 
to standards developed by the Secretary, the Secretary shall 
designate such institution for participation in the lender-of- 
last-resort program under this paragraph. If the Secretary des-
ignates an institution under this paragraph, the guaranty 
agency designated for the State in which the institution is 
located shall make loans, in the same manner as such loans 
are made under paragraph (1), to students and parent bor-
rowers of the designated institution, regardless of whether the 
students or parent borrowers are otherwise unable to obtain 
loans under this part (other than a consolidation loan under 
section 428C). 
‘‘(5) STANDARDS DEVELOPED BY THE SECRETARY.—In devel-
oping standards with respect to paragraph (4), the Secretary 
may require— 
‘‘(A) an institution of higher education to demonstrate 
that, despite due diligence on the part of the institution, 
the institution has been unable to secure the commitment 
of eligible lenders willing to make loans under this part 
to a significant number of students attending the institu-
tion; 
‘‘(B) that, prior to making a request under such para-
graph for designation for participation in the lender-of- 
last-resort program, an institution of higher education shall 
demonstrate that the institution has met a minimum 
threshold, as determined by the Secretary, for the number 
or percentage of students at such institution who have 
received rejections from eligible lenders for loans under 
this part; and 
‘‘(C) any other standards and guidelines the Secretary 
determines to be appropriate. 
‘‘(6) EXPIRATION OF AUTHORITY.—The Secretary’s authority 
under paragraph (4) to designate institutions of higher edu-
cation for participation in the program under this subsection 
shall expire on June 30, 2009. 
‘‘(7) EXPIRATION
OF
DESIGNATION.—The eligibility of an 
institution of higher education, or borrowers from such institu-
tion, to participate in the program under this subsection pursu-
ant to a designation of the institution by the Secretary under 
paragraph (4) shall expire on June 30, 2009. After such date, 
borrowers from an institution designated under paragraph (4) 
shall be eligible to participate in the program under this sub-
section as such program existed on the day before the date 
of enactment of the Ensuring Continued Access to Student 
Loans Act of 2008. 
‘‘(8) PROHIBITION ON INDUCEMENTS AND MARKETING.—Each 
guaranty agency or eligible lender that serves as a lender- 
of-last-resort under this subsection— 
Designation. 
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122 STAT. 745 
PUBLIC LAW 110–227—MAY 7, 2008 
‘‘(A) shall be subject to the prohibitions on inducements 
contained in subsection (b)(3) and the requirements of sec-
tion 435(d)(5); and 
‘‘(B) shall not advertise, market, or otherwise promote 
loans under this subsection, except that nothing in this 
paragraph shall prohibit a guaranty agency from fulfilling 
its responsibilities under paragraph (2)(C). 
‘‘(9) DISSEMINATION AND REPORTING.— 
‘‘(A) IN GENERAL.—The Secretary shall— 
‘‘(i) broadly disseminate information regarding the 
availability of loans made under this subsection; 
‘‘(ii) during the period beginning July 1, 2008 and 
ending June 30, 2010, provide to the Committee on 
Health, Education, Labor, and Pensions of the Senate 
and the Committee on Education and Labor of the 
House of Representatives and make available to the 
public— 
‘‘(I) copies of any new or revised plans or agree-
ments made by guaranty agencies or the Depart-
ment related to the authorities under this sub-
section; 
‘‘(II) quarterly reports on— 
‘‘(aa) the number and amounts of loans 
originated or approved pursuant to this sub-
section by each guaranty agency and eligible 
lender; and 
‘‘(bb) any related payments by the Depart-
ment, a guaranty agency, or an eligible lender; 
and 
‘‘(III) a budget estimate of the costs to the 
Federal 
Government 
(including 
subsidy 
and 
administrative costs) for each 100 dollars loaned, 
of loans made pursuant to this subsection between 
the date of enactment of the Ensuring Continued 
Access to Student Loans Act of 2008 and June 
30, 2009, disaggregated by type of loan, compared 
to such costs to the Federal Government during 
such time period of comparable loans under this 
part and part D, disaggregated by part and by 
type of loan; and 
‘‘(iii) beginning July 1, 2010, provide to the Com-
mittee on Health, Education, Labor, and Pensions of 
the Senate and the Committee on Education and Labor 
of the House of Representatives and make available 
to the public— 
‘‘(I) copies of any new or revised plans or agree-
ments made by guaranty agencies or the Depart-
ment related to the authorities under this sub-
section; and 
‘‘(II) annual reports on— 
‘‘(aa) the number and amounts of loans 
originated or approved pursuant to this sub-
section by each guaranty agency and eligible 
lender; and 
‘‘(bb) any related payments by the Depart-
ment, a guaranty agency, or an eligible lender. 
Effective date. 
Public 
information. 
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122 STAT. 746 
PUBLIC LAW 110–227—MAY 7, 2008 
‘‘(B) SEPARATE REPORTING.—The information required 
to be reported under subparagraph (A)(ii)(II) shall be 
reported separately for loans originated or approved pursu-
ant to paragraph (4), or payments related to such loans, 
for the time period in which the Secretary is authorized 
to make designations under paragraph (4).’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on the date of enactment of this Act. 
(c) REVIEW
OF INDUCEMENTS LIMITATIONS.—Within 90 days 
after the date of enactment of this Act, the Secretary of Education 
shall review, and as necessary revise, the Department of Education’s 
regulations concerning prohibited guaranty agency inducements to 
eligible lenders (34 CFR 682.401(e)) to ensure that such agencies 
do not engage in improper inducements in the expansion of oper-
ations of the lender-of-last-resort program as authorized by the 
amendments made by this section. The Secretary shall submit 
a report on the review and revision required by this subsection 
to the Committee on Education and Labor of the House of Rep-
resentatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate within 180 days after such date of enact-
ment. 
SEC. 6. MANDATORY ADVANCES. 
(a) IN GENERAL.—Section 421(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1071(b)) is amended— 
(1) in paragraph (4), by striking ‘‘programs, and’’ and 
inserting ‘‘programs,’’; 
(2) in paragraph (5), by striking ‘‘agencies.’’ and inserting 
‘‘agencies, and’’; and 
(3) by inserting before the matter following paragraph (5) 
the following: 
‘‘(6) there is authorized to be appropriated, and there are 
appropriated, out of any money in the Treasury not otherwise 
appropriated, such sums as may be necessary for the purpose 
of carrying out section 422(c)(7).’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on the date of enactment of this Act. 
SEC. 7. TEMPORARY AUTHORITY TO PURCHASE STUDENT LOANS. 
(a) SPENDING AUTHORITY.— 
(1) AUTHORITY
GRANTED.—The first sentence of section 
451(a) of the Higher Education Act of 1965 (20 U.S.C. 1087a(a)) 
is amended— 
(A) by inserting ‘‘(1)’’ after ‘‘as may be necessary’’; 
and 
(B) by inserting before the period at the end of such 
sentence the following: ‘‘; and (2) for purchasing loans 
under section 459A’’. 
(2) CONFORMING AMENDMENT.—Section 451(a) of such Act 
(20 U.S.C. 1087a(a)) is further amended by striking ‘‘Such 
loans shall’’ and inserting ‘‘Loans made under this part shall’’. 
(b) TEMPORARY AUTHORITY.—Part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by 
inserting after section 459 the following new section: 
‘‘SEC. 459A. TEMPORARY AUTHORITY TO PURCHASE STUDENT LOANS. 
‘‘(a) AUTHORITY TO PURCHASE.— 
20 USC 1087i–1. 
20 USC 1071 
note. 
Appropriation 
authorization. 
Reports. 
Deadlines. 
Regulations. 
20 USC 1078 
note. 
20 USC 1078 
note. 
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122 STAT. 747 
PUBLIC LAW 110–227—MAY 7, 2008 
‘‘(1) AUTHORITY; DETERMINATION REQUIRED.—Upon a deter-
mination by the Secretary that there is an inadequate avail-
ability of loan capital to meet the demand for loans under 
sections 428, 428B, or 428H, whether as a result of inadequate 
liquidity for such loans or for other reasons, the Secretary, 
in consultation with the Secretary of the Treasury, is authorized 
to purchase, or enter into forward commitments to purchase, 
from any eligible lender, as defined by section 435(d)(1), loans 
first disbursed under sections 428, 428B, or 428H on or after 
October 1, 2003, and before July 1, 2009, on such terms as 
the Secretary, the Secretary of the Treasury, and the Director 
of the Office of Management and Budget jointly determine 
are in the best interest of the United States, except that any 
purchase under this section shall not result in any net cost 
to the Federal Government (including the cost of servicing 
the loans purchased), as determined jointly by the Secretary, 
the Secretary of the Treasury, and the Director of the Office 
of Management and Budget. 
‘‘(2) FEDERAL REGISTER NOTICE.—The Secretary, the Sec-
retary of the Treasury, and the Director of the Office of Manage-
ment and Budget, shall jointly publish a notice in the Federal 
Register prior to any purchase of loans under this section 
that— 
‘‘(A) establishes the terms and conditions governing 
the purchases authorized by paragraph (1); 
‘‘(B) includes an outline of the methodology and factors 
that the Secretary, the Secretary of the Treasury, and 
the Director of the Office of Management and Budget, 
will jointly consider in evaluating the price at which to 
purchase loans made under section 428, 428B, or 428H; 
and 
‘‘(C) describes how the use of such methodology and 
consideration of such factors used to determine purchase 
price will ensure that loan purchases do not result in 
any net cost to the Federal Government (including the 
cost of servicing the loans purchased). 
‘‘(b) PROCEEDS.—The Secretary shall require, as a condition 
of any purchase under subsection (a), that the funds paid by the 
Secretary to any eligible lender under this section shall be used: 
(1) to ensure continued participation of such lender in the Federal 
student loan programs authorized under part B of this title; and 
(2) to originate new Federal loans to students, as authorized under 
part B of this title. 
‘‘(c) MAINTAINING SERVICING ARRANGEMENTS.—The Secretary 
may, if agreed upon by an eligible lender selling loans under this 
section, contract with such lender for the servicing of the loans 
purchased, provided that— 
‘‘(1) the cost of such servicing arrangement does not exceed 
the cost the Federal Government would otherwise incur for 
the servicing of loans purchased, as determined under sub-
section (a); and 
‘‘(2) such servicing arrangement is in the best interest 
of the borrowers whose loans are purchased. 
‘‘(d) EXPIRATION OF AUTHORITY.—The Secretary’s authority to 
purchase loans under this section shall expire on July 1, 2009.’’. 
(c) CONTRACTING AUTHORITY.—Section 456(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1087f(b)) is amended by inserting 
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122 STAT. 748 
PUBLIC LAW 110–227—MAY 7, 2008 
‘‘or purchased’’ after ‘‘loans made’’ each place it appears in para-
graphs (2) and (3). 
SEC. 8. SENSE OF CONGRESS. 
It is a sense of Congress that, at a time when our economy 
is fragile and higher education and retraining opportunities are 
more important than ever— 
(1) the Federal financial institutions, such as the Federal 
Financing Bank and Federal Reserve, and federally chartered 
private entities such as the Federal Home Loan Banks and 
others, should consider, in consultation with the Secretary of 
Treasury and the Secretary of Education, using available 
authorities in a timely manner, if needed, to assist in ensuring 
that students and families can access Federal student loans 
for academic year 2008–2009, and if needed in the subsequent 
academic year, in a manner that results in no increased costs 
to taxpayers; and 
(2) any action taken as a result of such consideration 
should in no way limit or delay the Secretary of Education’s 
authority to operate the lender-of-last-resort provisions of sec-
tion 428(j) of the Higher Education Act of 1965 (as amended 
by this Act), nor the authority to purchase Federal Family 
Education Loan Program loans, as authorized by section 459A 
of such Act (as added by this Act). 
SEC. 9. GAO STUDY ON IMPACT OF INCREASED LOAN LIMITS. 
(a) STUDY REQUIRED.—The Comptroller General shall conduct 
a study to evaluate the impact of the increase in Federal loan 
limits provided for in section 2 of this Act and section 8005 of 
the Deficit Reduction Act of 2005 with respect to the impact on— 
(1) tuition, fees, and room and board at institutions of 
higher education; and 
(2) private loan borrowing by students and parents for 
attendance at institutions of higher education. 
(b) STUDY COMPONENTS.—The study required under subsection 
(a) shall be conducted for each major sector of institutions of higher 
education over a 5-year time period. The report shall specifically 
analyze the following: 
(1) Whether, on average, tuition, fees, and room and board 
increase, decrease, or remain unchanged in each such sector 
after the increases in Federal loan limits take effect. 
(2) Whether the amount of private educational loans taken 
out by students (and their parents) at institutions in each 
such sector to pay tuition, fees, and room and board increase, 
decrease, or remain unchanged. 
(c) REPORT.—Not later than one year after the date of enact-
ment of this Act, the Comptroller General shall provide an interim 
report to the Committee on Education and Labor of the House 
of Representatives and the Committee on Health, Education, Labor, 
and Pensions of the Senate including the initial results of the 
study conducted under this section. The Comptroller General shall 
follow up with such Committees after the third year and the fifth 
year after such date of enactment. 
SEC. 10. ACADEMIC COMPETITIVENESS GRANTS. 
(a) AMENDMENTS.—Section 401A of the Higher Education Act 
of 1965 (20 U.S.C. 1070a–1) is amended— 
(1) by striking subsection (a) and inserting the following: 
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122 STAT. 749 
PUBLIC LAW 110–227—MAY 7, 2008 
‘‘(a) ACADEMIC COMPETITIVENESS GRANT PROGRAM AUTHOR-
IZED.—The Secretary shall award grants, in the amounts specified 
in subsection (d)(1), to eligible students to assist the eligible stu-
dents in paying their college education expenses.’’; 
(2) in subsection (b)— 
(A) by striking ‘‘academic year’’ each place it appears 
and inserting ‘‘year’’; and 
(B) in paragraph (2), by striking ‘‘third or fourth’’ and 
inserting ‘‘third, fourth, or fifth’’; 
(3) in subsection (c)— 
(A) in the matter preceding paragraph (1)— 
(i) by striking ‘‘full–time’’; 
(ii) by striking ‘‘academic’’ and inserting ‘‘award’’; 
and 
(iii) by striking ‘‘is made’’ and inserting ‘‘is made 
for a grant under this section’’; 
(B) by striking paragraphs (1) and (2) and inserting 
the following: 
‘‘(1) is eligible for a Federal Pell Grant; 
‘‘(2) is enrolled or accepted for enrollment in an institution 
of higher education on not less than a half-time basis; and’’; 
and 
(C) in paragraph (3)— 
(i) by striking ‘‘academic’’ each place the term 
appears; 
(ii) in subparagraph (A)— 
(I) by striking the matter preceding clause 
(i) and inserting the following: 
‘‘(A) the first year of a program of undergraduate 
education at a two- or four-year degree-granting institution 
of higher education (including a program of not less than 
one 
year 
for 
which 
the 
institution 
awards 
a 
certificate)—’’; 
(II) by striking clause (i) and inserting the 
following: 
‘‘(i) has successfully completed, after January 1, 
2006, a rigorous secondary school program of study 
that prepares students for college and is recognized 
as such by the State official designated for such rec-
ognition, or with respect to any private or home school, 
the school official designated for such recognition for 
such school, consistent with State law, which recog-
nized program shall be reported to the Secretary; and’’; 
and 
(III) in clause (ii), by inserting ‘‘, except as 
part of a secondary school program of study’’ before 
the semicolon; 
(iii) in subparagraph (B)— 
(I) in the matter preceding clause (i), by 
striking ‘‘year of’’ and all that follows through 
‘‘higher education’’ and inserting ‘‘year of a pro-
gram of undergraduate education at a two- or four- 
year degree-granting institution of higher edu-
cation (including a program of not less than two 
years for which the institution awards a certifi-
cate)’’; and 
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122 STAT. 750 
PUBLIC LAW 110–227—MAY 7, 2008 
(II) in clause (ii), by striking ‘‘or’’ after the 
semicolon at the end; 
(iv) in subparagraph (C)— 
(I) in the matter preceding subclause (I) of 
clause (i), by inserting ‘‘certified by the institution 
to be’’ after ‘‘is’’; 
(II) by striking clause (i)(II) and inserting the 
following: 
‘‘(II) a critical foreign language; and’’; and 
(III) in clause (ii), by striking the period at 
the end and inserting a semicolon; and 
(v) by adding at the end the following: 
‘‘(D) the third or fourth year of a program of under-
graduate education at an institution of higher education 
(as defined in section 101(a)), is attending an institution 
that demonstrates, to the satisfaction of the Secretary, 
that the institution— 
‘‘(i) offers a single liberal arts curriculum leading 
to a baccalaureate degree, under which students are 
not permitted by the institution to declare a major 
in a particular subject area, and the student— 
‘‘(I)(aa) studies, in such years, a subject 
described in subparagraph (C)(i) that is at least 
equal to the requirements for an academic major 
at an institution of higher education that offers 
a baccalaureate degree in such subject, as certified 
by an appropriate official from the institution; and 
‘‘(bb) has obtained a cumulative grade point 
average of at least 3.0 (or the equivalent as deter-
mined under regulations prescribed by the Sec-
retary) in the relevant coursework; or 
‘‘(II) is required, as part of the student’s degree 
program, to undertake a rigorous course of study 
in mathematics, biology, chemistry, and physics, 
which consists of at least— 
‘‘(aa) 4 years of study in mathematics; 
and 
‘‘(bb) 3 years of study in the sciences, with 
a laboratory component in each of those years; 
and 
‘‘(ii) offered such curriculum prior to February 8, 
2006; or 
‘‘(E) the fifth year of a program of undergraduate edu-
cation that requires 5 full years of coursework, as certified 
by the appropriate official of the degree-granting institution 
of higher education, for which a baccalaureate degree is 
awarded by a degree-granting institution of higher edu-
cation— 
‘‘(i) is certified by the institution of higher edu-
cation to be pursuing a major in— 
‘‘(I) the physical, life, or computer sciences, 
mathematics, technology, or engineering (as deter-
mined by the Secretary pursuant to regulations); 
or 
‘‘(II) a critical foreign language; and 
‘‘(ii) has obtained a cumulative grade point average 
of at least 3.0 (or the equivalent, as determined under 
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122 STAT. 751 
PUBLIC LAW 110–227—MAY 7, 2008 
regulations prescribed by the Secretary) in the 
coursework required for the major described in clause 
(i).’’; 
(4) in subsection (d)— 
(A) in paragraph (1)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘The’’ and inserting ‘‘IN GEN-
ERAL.—The’’; 
(II) in clause (ii), by striking ‘‘or’’ after the 
semicolon at the end; 
(III) in clause (iii), by striking ‘‘subsection 
(c)(3)(C).’’ and inserting ‘‘subparagraph (C) or (D) 
of subsection (c)(3), for each of the two years 
described in such subparagraphs; or’’; and 
(IV) by adding at the end the following: 
‘‘(iv) $4,000 for an eligible student under sub-
section (c)(3)(E).’’; and 
(ii) in subparagraph (B)— 
(I) by striking ‘‘Notwithstanding’’ and inserting 
‘‘LIMITATION; 
RATABLE
REDUCTION.—Notwith-
standing’’; 
(II) by redesignating clauses (i), (ii), and (iii), 
as clauses (ii), (iii), and (iv), respectively; and 
(III) by inserting before clause (ii), as redesig-
nated under subclause (II), the following: 
‘‘(i) in any case in which a student attends an 
institution of higher education on less than a full- 
time basis, the amount of the grant that such student 
may receive shall be reduced in the same manner 
as a Federal Pell Grant is reduced under section 
401(b)(2)(B);’’; 
(B) by striking paragraph (2) and inserting the fol-
lowing: 
‘‘(2) LIMITATIONS.— 
‘‘(A) NO GRANTS FOR PREVIOUS CREDIT.—The Secretary 
may not award a grant under this section to any student 
for any year of a program of undergraduate education 
for which the student received credit before the date of 
enactment of the Higher Education Reconciliation Act of 
2005. 
‘‘(B) NUMBER
OF
GRANTS.—The Secretary may not 
award more than one grant to a student described in sub-
section (c)(3) for each year of study described in such sub-
section.’’; and 
(C) by adding at the end the following: and 
‘‘(3) CALCULATION OF GRANT PAYMENTS.—An institution of 
higher education shall make payments of a grant awarded 
under this section in the same manner, using the same payment 
periods, as such institution makes payments for Federal Pell 
Grants under section 401.’’; 
(5) by striking subsection (e)(2) and inserting the following: 
‘‘(2) AVAILABILITY OF FUNDS.—Funds made available under 
paragraph (1) for a fiscal year shall remain available for the 
succeeding fiscal year.’’; 
(6) in subsection (f)— 
(A) by striking ‘‘at least one’’ and inserting ‘‘not less 
than one’’; and 
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122 STAT. 752 
PUBLIC LAW 110–227—MAY 7, 2008 
LEGISLATIVE HISTORY—H.R. 5715: 
HOUSE REPORTS: No. 110–583 (Comm. on Education and Labor). 
CONGRESSIONAL RECORD, Vol. 154 (2008): 
Apr. 16, 17, considered and passed House. 
Apr. 30, considered and passed Senate, amended. 
May 1, House concurred in Senate amendments. 
(B) by striking ‘‘subsection (c)(3)(A) and (B)’’ and 
inserting ‘‘subparagraphs (A) and (B) of subsection (c)(3)’’; 
and 
(7) in subsection (g), by striking ‘‘academic’’ and inserting 
‘‘award’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on January 1, 2009. 
SEC. 11. INAPPLICABILITY OF MASTER CALENDAR AND NEGOTIATED 
RULEMAKING REQUIREMENTS. 
Sections 482 and 492 of the Higher Education Act of 1965 
(20 U.S.C. 1089, 1098a) shall not apply to amendments made by 
sections 2 through 9 of this Act, or to any regulations promulgated 
under such amendments. 
Approved May 7, 2008. 
20 USC 1089 
note. 
20 USC 1070a–1 
note. 
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