[House Report 115-550]
[From the U.S. Government Publishing Office]
115th Congress } { REPORT
HOUSE OF REPRESENTATIVES
2d Session } { 115-550
======================================================================
PROMOTING REAL OPPORTUNITY, SUCCESS,
AND PROSPERITY THROUGH EDUCATION
REFORM ACT
----------
R E P O R T
OF THE
COMMITTEE ON EDUCATION AND THE WORKFORCE
TO ACCOMPANY
H.R. 4508
together with
MINORITY VIEWS
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
February 8, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
PROMOTING REAL OPPORTUNITY, SUCCESS, AND
PROSPERITY THROUGH EDUCATION REFORM ACT
115th Congress } { REPORT
HOUSE OF REPRESENTATIVES
2d Session } { 115-550
======================================================================
PROMOTING REAL OPPORTUNITY, SUCCESS,
AND PROSPERITY THROUGH EDUCATION
REFORM ACT
__________
R E P O R T
of the
COMMITTEE ON EDUCATION AND THE WORKFORCE
to accompany
H.R. 4508
together with
MINORITY VIEWS
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
February 8, 2018.--Committed to the Committee of the Whole House
on the State of the Union and ordered to be printed
__________
U.S. GOVERNMENT PUBLISHING OFFICE
28-573 WASHINGTON : 2018
----------------------------------------------------------------------------------------
115th Congress } { REPORT
HOUSE OF REPRESENTATIVES
2d Session } { 115-550
======================================================================
PROMOTING REAL OPPORTUNITY, SUCCESS, AND PROSPERITY THROUGH EDUCATION
REFORM ACT
_______
February 8, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Foxx, from the Committee on Education and the Workforce, submitted
the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 4508]
[Including cost estimate of the Congressional Budget Office]
The Committee Education and the Workforce, to whom was
referred the bill (H.R. 4508) to support students in completing
an affordable postsecondary education that will prepare them to
enter the workforce with the skills they need for lifelong
success, having considered the same, reports favorably thereon
with an amendment and recommends that the bill as amended do
pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Promoting Real
Opportunity, Success, and Prosperity through Education Reform Act'' or
the ``PROSPER Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. General effective date.
TITLE I--GENERAL PROVISIONS
Part A--Definitions
Sec. 101. Definition of institution of higher education.
Sec. 102. Institutions outside the United States.
Sec. 103. Additional definitions.
Sec. 104. Regulatory relief.
Part B--Additional General Provisions
Sec. 111. Free speech protections.
Sec. 112. Sense of Congress on inclusion and respect.
Sec. 113. National Advisory Committee on Institutional Quality and
Integrity.
Sec. 114. Repeal of certain reporting requirements.
Sec. 115. Programs on drug and alcohol abuse prevention.
Sec. 116. Campus access for religious groups.
Sec. 117. Secretarial prohibitions.
Sec. 118. Ensuring equal treatment by governmental entities.
Sec. 119. Single-sex social student organizations.
Sec. 120. Department staff.
Sec. 120A. Department of Homeland Security Recruiting on Campus.
Part C--Cost of Higher Education
Sec. 121. College Dashboard website.
Sec. 122. Net price calculators.
Sec. 123. Text book information.
Sec. 124. Review of current data collection and feasibility study of
improved data collection.
Part D--Administrative Provisions for Delivery of Student Financial
Assistance
Sec. 131. Performance-based organization for the delivery of Federal
student financial assistance.
Sec. 132. Administrative data transparency.
Sec. 133. Report by GAO on transfer of functions of the Office of
Federal Student Aid to the Department of Treasury.
Part E--Lender and Institution Requirements Relating to Education Loans
Sec. 141. Modification of preferred lender arrangements.
Part F--Addressing Sexual Assault
Sec. 151. Addressing sexual assault.
TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS
Sec. 201. Repeal.
Sec. 202. Grants for access to high-demand careers.
TITLE III--INSTITUTIONAL AID
Sec. 301. Strengthening institutions.
Sec. 302. Strengthening historically Black colleges and universities.
Sec. 303. Historically Black college and university capital financing.
Sec. 304. Minority Science and Engineering Improvement Program.
Sec. 305. Strengthening historically Black colleges and universities
and other minority-serving institutions.
Sec. 306. General provisions.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
Sec. 401. Federal Pell Grants.
Sec. 402. Federal TRIO programs.
Sec. 403. Gaining early awareness and readiness for undergraduate
programs.
Sec. 404. Special programs for students whose families are engaged in
migrant and seasonal farmwork.
Sec. 405. Child care access means parents in school.
Sec. 406. Repeals.
Sec. 407. Sunset of TEACH grants.
Part B--Federal Family Education Loan Program
Sec. 421. Federal Direct Consolidation Loans.
Sec. 422. Loan rehabilitation.
Sec. 423. Loan forgiveness for teachers.
Sec. 424. Loan forgiveness for service in areas of national need.
Sec. 425. Loan repayment for civil legal assistance attorneys.
Sec. 426. Sunset of cohort default rate and other conforming changes.
Sec. 427. Additional disclosures.
Sec. 428. Closed school and other discharges.
Part C--Federal Work-Study Programs
Sec. 441. Purpose; authorization of appropriations.
Sec. 442. Allocation formula.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Flexible use of funds.
Sec. 445. Job location and development programs.
Sec. 446. Community service.
Sec. 447. Work colleges.
Part D--Federal Direct Student Loan Program
Sec. 451. Termination of Federal Direct Loan Program under part D and
other conforming amendments.
Sec. 452. Borrower defenses.
Sec. 453. Plain language disclosure form.
Sec. 454. Administrative expenses.
Sec. 455. Loan cancellation for teachers.
Part E--Federal ONE Loans
Sec. 461. Wind-down of Federal Perkins Loan Program.
Sec. 462. Federal ONE Loan program.
Part F--Need Analysis
Sec. 471. Cost of attendance.
Sec. 472. Simplified needs test.
Sec. 473. Discretion of student financial aid administrators.
Sec. 474. Definitions of total income and assets.
Part G--General Provisions Relating to Student Assistance
Sec. 481. Definitions of academic year and eligible program.
Sec. 482. Programmatic loan repayment rates.
Sec. 483. Master calendar.
Sec. 484. FAFSA Simplification.
Sec. 485. Student eligibility.
Sec. 486. Statute of limitations.
Sec. 487. Institutional refunds.
Sec. 488. Information disseminated to prospective and enrolled
students.
Sec. 489. Early awareness of financial aid eligibility.
Sec. 490. Distance education demonstration programs.
Sec. 491. Contents of program participation agreements.
Sec. 492. Regulatory relief and improvement.
Sec. 493. Transfer of allotments.
Sec. 494. Administrative expenses.
Sec. 494A. Repeal of advisory committee.
Sec. 494B. Regional meetings and negotiated rulemaking.
Sec. 494C. Report to Congress.
Sec. 494D. Deferral of loan repayment following active duty.
Sec. 494E. Contracts; matching program.
Part H--Program Integrity
Sec. 495. Repeal of and prohibition on State authorization regulations.
Sec. 496. Recognition of accrediting agency or association.
Sec. 497. Eligibility and certification procedures.
TITLE V--DEVELOPING INSTITUTIONS
Sec. 501. Hispanic-serving institutions.
Sec. 502. Promoting postbaccalaureate opportunities for Hispanic
Americans.
Sec. 503. General provisions.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Repeal of assistance program for Institute for International
Public Policy.
Sec. 604. General provisions.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Sec. 701. Graduate education programs.
Sec. 702. Repeal of Fund for the Improvement of Postsecondary
Education.
Sec. 703. Programs for students with disabilities.
Sec. 704. Repeal of college access challenge grant program.
TITLE VIII--OTHER REPEALS
Sec. 801. Repeal of additional programs.
TITLE IX--AMENDMENTS TO OTHER LAWS
Part A--Education of the Deaf Act of 1986
Sec. 901. Education of the Deaf Act of 1986.
Part B--Tribally Controlled Colleges and Universities Assistance Act of
1978; Dine' College Act
Sec. 911. Tribally Controlled Colleges and Universities Assistance Act
of 1978.
Sec. 912. Dine' College Act.
Part C--General Education Provisions Act
Sec. 921. Release of education records to facilitate the award of a
recognized postsecondary credential.
SEC. 2. REFERENCES.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Higher Education Act of
1965 (20 U.S.C. 1001 et seq.).
SEC. 3. GENERAL EFFECTIVE DATE.
Except as otherwise provided in this Act or the amendments made by
this Act, this Act and the amendments made by this Act shall take
effect on the date of enactment of this Act.
TITLE I--GENERAL PROVISIONS
PART A--DEFINITIONS
SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
Part A of title I (20 U.S.C. 1001 et seq.) is amended by striking
section 101 (20 U.S.C. 1001) and inserting the following:
``SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
``(a) Institution of Higher Education.--For purposes of this Act, the
term `institution of higher education' means an educational institution
in any State that--
``(1) admits as regular students only persons who--
``(A) have a certificate of graduation from a school
providing secondary education, or the recognized
equivalent of such a certificate, or who meet the
requirements of section 484(d);
``(B) are beyond the age of compulsory school
attendance in the State in which the institution is
located; or
``(C) will be dually or concurrently enrolled in the
institution and a secondary school;
``(2) is legally authorized by the State in which it
maintains a physical location to provide a program of education
beyond secondary education;
``(3)(A) is accredited by a nationally recognized accrediting
agency or association; or
``(B) if not so accredited, is an institution that has been
granted preaccreditation status by such an agency or
association that has been recognized by the Secretary for the
granting of preaccreditation status, and the Secretary has
determined that there is satisfactory assurance that the
institution will meet the accreditation standards of such an
agency or association within a reasonable time; and
``(4) provides--
``(A) an educational program for which the
institution awards a bachelor's degree, graduate
degree, or professional degree;
``(B) not less than a 2-year educational program
which is acceptable for full credit towards a
bachelor's degree; or
``(C) a non-degree program leading to a recognized
educational credential that meets the definition of an
eligible program under section 481(b).
``(b) Additional Limitations.--
``(1) Proprietary institutions of higher education.--
``(A) Length of existence.--A proprietary institution
shall not be considered an institution of higher
education unless such institution has been in existence
for at least 2 years.
``(B) Institutional ineligibility for minority
serving institution programs.--A proprietary
institution shall not be considered an institution of
higher education for the purposes of any program under
title III or V.
``(2) Postsecondary vocational institutions.--A nonprofit or
public institution that offers only non-degree programs
described in subsection (a)(4)(C) shall not be considered an
institution of higher education unless such institution has
been in existence for at least 2 years.
``(3) Limitations based on management.--An institution shall
not be considered an institution of higher education if--
``(A) the institution, or an affiliate of the
institution that has the power, by contract or
ownership interest, to direct or cause the direction of
the management or policies of the institution, has
filed for bankruptcy; or
``(B) the institution, the institution's owner, or
the institution's chief executive officer has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of Federal funds, or has been judicially determined to
have committed a crime involving the acquisition, use,
or expenditure involving Federal funds.
``(4) Limitation on course of study or enrollment.--An
institution shall not be considered an institution of higher
education if such institution--
``(A) offers more than 50 percent of such
institution's courses by correspondence education,
unless the institution is an institution that meets the
definition in section 3(3)(C) of the Carl D. Perkins
Career and Technical Education Act of 2006;
``(B) enrolls 50 percent or more of the institution's
students in correspondence education courses, unless
the institution is an institution that meets the
definition in section 3(3)(C) of such Act;
``(C) has a student enrollment in which more than 25
percent of the students are incarcerated, except that
the Secretary may waive the limitation contained in
this subparagraph for an institution that provides a 2-
or 4-year program of instruction (or both) for which
the institution awards an associate's degree or a
postsecondary certificate, or a bachelor's degree,
respectively; or
``(D) has a student enrollment in which more than 50
percent of the students either do not have a secondary
school diploma or its recognized equivalent, or do not
meet the requirements of section 484(d), and does not
provide a 2- or 4-year program of instruction (or both)
for which the institution awards an associate's degree
or a bachelor's degree, respectively, except that the
Secretary may waive the limitation contained in this
subparagraph if an institution demonstrates to the
satisfaction of the Secretary that the institution
exceeds such limitation because the institution serves,
through contracts with Federal, State, or local
government agencies, significant numbers of students
who do not have a secondary school diploma or its
recognized equivalent or do not meet the requirements
of section 484(d).
``(c) List of Accrediting Agencies.--For purposes of this section,
the Secretary shall publish a list of nationally recognized accrediting
agencies or associations that the Secretary determines, pursuant to
subpart 2 of part H of title IV, to be reliable authority as to the
quality of the education offered.
``(d) Certification.--The Secretary shall certify, for the purposes
of participation in title IV, an institution's qualification as an
institution of higher education in accordance with the requirements of
subpart 3 of part H of title IV.
``(e) Loss of Eligibility.--An institution of higher education shall
not be considered to meet the definition of an institution of higher
education for the purposes of participation in title IV if such
institution is removed from eligibility for funds under title IV as a
result of an action pursuant to part H of title IV.
``(f) Rule of Construction.--Nothing in subsection (a)(2) relating to
State authorization shall be construed to--
``(1) impede or preempt State laws, regulations, or
requirements on how States authorize out-of-state institutions
of higher education; or
``(2) limit, impede, or preclude a State's ability to
collaborate or participate in a reciprocity agreement to permit
an institution within such State to meet any other State's
authorization requirements for out-of-state institutions.''.
SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.
Part A of title I (20 U.S.C. 1001 et seq.) is further amended by
striking section 102 (20 U.S.C. 1002) and inserting the following:
``SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.
``(a) Institutions Outside the United States.--
``(1) In general.--Only for purposes of part D or E of title
IV, the term `institution of higher education' includes an
institution outside the United States (referred to in this part
as a `foreign institution') that is comparable to an
institution of higher education as defined in section 101 and
has been approved by the Secretary for purposes of part D or E
of title IV, consistent with the requirements of section
452(d).
``(2) Qualifications.--Only for the purposes of students
receiving aid under title IV, an institution of higher
education may not qualify as a foreign institution under
paragraph (1), unless such institution--
``(A) is legally authorized to provide an educational
program beyond secondary education by the education
ministry (or comparable agency) of the country in which
the institution is located;
``(B) is not located in a State;
``(C) except as provided with respect to clinical
training offered by the institution under 600.55(h)(1),
section 600.56(b), or section 600.57(a)(2) of title 34,
Code of Federal Regulations (as in effect pursuant to
subsection (b))--
``(i) does not offer any portion of an
educational program in the United States to
students who are citizens of the United States;
``(ii) has no written arrangements with an
institution or organization located in the
United States under which students enrolling at
the foreign institution would take courses from
an institution located in the United States;
and
``(iii) does not allow students to enroll in
any course offered by the foreign institution
in the United States, including research, work,
internship, externship, or special studies
within the United States, except that
independent research done by an individual
student in the United States for not more than
one academic year is permitted, if the research
is conducted during the dissertation phase of a
doctoral program under the guidance of faculty
and the research is performed at a facility in
the United States;
``(D) awards degrees, certificates, or other
recognized educational credentials in accordance with
section 600.54(e) of title 34, Code of Federal
Regulations (as in effect pursuant to subsection (b))
that are officially recognized by the country in which
the institution is located; and
``(E) meets the applicable requirements of subsection
(b).
``(3) Institutions with locations in and outside the united
states.--In a case of an institution of higher education
consisting of two or more locations offering all or part of an
educational program that are directly or indirectly under
common ownership and that enrolls students both within a State
and outside the United States, and the number of students who
would be eligible to receive funds under title IV attending
locations of such institution outside the United States, is at
least twice the number of students enrolled within a State--
``(A) the locations outside the United States shall
apply to participate as one or more foreign
institutions and shall meet the requirements of
paragraph (1) of this definition, and the other
requirements of this part; and
``(B) the locations within a State shall be treated
as an institution of higher education under section
101.
``(b) Treatment of Certain Regulations.--
``(1) Force and effect.--
``(A) In general.--The provisions of title 34, Code
of Federal Regulations, referred to in subparagraph
(B), as such provisions were in effect on the day
before the date of the enactment of the PROSPER Act,
shall have the force and effect of enacted law until
changed by such law and are deemed to be incorporated
in this subsection as though set forth fully in this
subsection.
``(B) Applicable provisions.--The provisions of title
34, Code of Federal Regulations, referred to in this
subparagraph are the following:
``(i) Subject to paragraph (2)(A), section
600.41(e)(3).
``(ii) Subject to paragraph (2)(B), section
600.52.
``(iii) Subject to paragraph (2)(C), section
600.54.
``(iv) Subject to subparagraphs (D) and (E)
of paragraph (2), section 600.55, except that
paragraph (4) of subsection (f) of such section
shall have no force or effect.
``(v) Section 600.56.
``(vi) Subject to paragraph (2)(F), section
600.57.
``(vii) Subject to subparagraphs (G) and (H)
of paragraph (2), section 668.23(h), except
that clause (iii) of paragraph (1) of such
section shall have no force or effect.
``(viii) Section 668.5.
``(C) Application to federal one loans.--With respect
to the provisions of title 34, Code of Federal
Regulations, referred to subparagraph (B), as modified
by paragraph (2) any reference to a loan made under
part D of title IV shall also be treated as a reference
to a loan made under part E of title IV.
``(2) Modifications.--The following shall apply to the
provisions of title 34, Code of Federal Regulations, referred
to in paragraph (1)(B):
``(A) Notwithstanding section 600.41(e)(3) of title
34, Code of Federal Regulations (as in effect pursuant
to paragraph (1)), if the basis for the loss of
eligibility of a foreign graduate medical school to
participate in programs under title IV is one or more
annual pass rates on the United States Medical
Licensing Examination below the threshold required in
subparagraph (D) the sole issue is whether the
aggregate pass rate for the preceding calendar year
fell below that threshold. For purposes of the
preceding sentence, in the case of a foreign graduate
medical school that opted to have the Educational
Commission for Foreign Medical Graduates calculate and
provide the pass rates directly to the Secretary for
the preceding calendar year as permitted under section
600.55(d)(2) of title 34, Code of Federal Regulations
(as in effect pursuant to paragraph (1)), in lieu of
the foreign graduate medical school providing pass rate
data to the Secretary under section 600.55(d)(1)(iii)
of title 34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), the Educational Commission
for Foreign Medical Graduates' calculations of the
school's rates are conclusive; and the presiding
official has no authority to consider challenges to the
computation of the rate or rates by the Educational
Commission for Foreign Medical Graduates.
``(B) Notwithstanding section 600.52 of title 34,
Code of Federal Regulations (as in effect pursuant to
paragraph (1)), in this Act, the term `foreign
institution' means an institution described in
subsection (a).
``(C) Notwithstanding section 600.54(c) of title 34,
Code of Federal Regulations (as in effect pursuant to
paragraph (1)), to be eligible to participate in
programs under title IV, foreign institution may not
enter into a written arrangement under which an
institution or organizations that is not eligible to
participate in programs under title IV provides more
than 25 percent of the program of study for one or more
of the eligible foreign institution's programs.
``(D) Notwithstanding section 600.55(f)(1)(ii) of
title 34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), for a foreign graduate
medical school outside of Canada, for Step 1, Step 2-
CS, and Step 2-CK, or the successor examinations, of
the United States Medical Licensing Examination
administered by the Educational Commission for Foreign
Medical Graduate, at least 75 percent of the school's
students and graduates who receive or have received
title IV funds in order to attend that school, and who
completed the final of these three steps of the
examination in the year preceding the year for which
any of the school's students seeks a loan under title
IV shall have received an aggregate passing score on
the exam as a whole; or except as provided in section
600.55(f)(2) of title 34, Code of Federal Regulations
(as in effect pursuant to paragraph (1)), for no more
than two consecutive years, at least 70 percent of the
individuals who were students or graduates of the
graduate medical school outside the United States or
Canada (who receive or have received title IV funds in
order to attend that school) taking the United States
Medical Licensing Examination exams in the year
preceding the year for which any of the school's
students seeks a loan under title IV shall have
received an aggregate passing score on the exam as a
whole.
``(E) Notwithstanding 600.55(h)(2) of title 34, Code
of Federal Regulations (as in effect pursuant to
paragraph (1)), not more than 25 percent of the
graduate medical educational program offered to United
States students, other than the clinical training
portion of the program, may be located outside of the
country in which the main campus of the foreign
graduate medical school is located.
``(F) Notwithstanding section 600.57(a)(5) of title
34, Code of Federal Regulations (as in effect pursuant
to paragraph (1)), a nursing school shall reimburse the
Secretary for the cost of any loan defaults for current
and former students during the previous fiscal year.
``(G) Notwithstanding section 668.23(h)(1)(ii), of
title 34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), a foreign institution that
received $500,000 or more in funds under title IV
during its most recently completed fiscal year shall
submit, in English, for each most recently completed
fiscal year in which it received such funds, audited
financial statements prepared in accordance with
generally accepted accounting principles of the
institution's home country provided that such
accounting principles are comparable to the
International Financial Reporting Standards.
``(H) Notwithstanding section 668.23(h)(1)(ii), of
title 34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), only in a case in which the
accounting principles of an institution's home country
are not comparable to International Financial Reporting
Standards shall the institution be required to submit
corresponding audited financial statements that meet
the requirements of section 668.23(d) of title 34, Code
of Federal Regulations (as in effect pursuant to
paragraph (1)).
``(c) Special Rules.--
``(1) In general.--A foreign graduate medical school at which
student test passage rates are below the minimum requirements
set forth in subsection (b)(2)(D) for each of the two most
recent calendar years for which data are available shall not be
eligible to participate in programs under part D or E of title
IV in the fiscal year subsequent to that consecutive two year
period and such institution shall regain eligibility to
participate in programs under such part only after
demonstrating compliance with requirements under section 600.55
of title 34, Code of Federal Regulations (as in effect pursuant
to subsection (b)) for one full calendar year subsequent to the
fiscal year the institution became ineligible unless, within 30
days of receiving notification from the Secretary of the loss
of eligibility under this paragraph, the institution appeals
the loss of its eligibility to the Secretary. The Secretary
shall issue a decision on any such appeal within 45 days after
its submission. Such decision may permit the institution to
continue to participate in programs under part D or E of title
IV, if--
``(A) the institution demonstrates to the
satisfaction of the Secretary that the test passage
rates on which the Secretary has relied are not
accurate, and that the recalculation of such rates
would result in rates that exceed the required minimum
for any of these two calendar years; or
``(B) there are, in the judgement of the Secretary,
mitigating circumstances that would make the
application of this paragraph inequitable.
``(2) Student eligibility.--If, pursuant to this subsection,
a foreign graduate medical school loses eligibility to
participate in the programs under part D or E of title IV, then
a student at such institution may, notwithstanding such loss of
eligibility, continue to be eligible to receive a loan under
such part while attending such institution for the academic
year succeeding the academic year in which such loss of
eligibility occurred.
``(3) Treatment of clinical training programs.--
``(A) In general.--Clinical training programs
operated by a foreign graduate medical school with an
accredited hospital or clinic in the United States or
at an institution in Canada accredited by the Liaison
Committee on Medical Education shall be deemed to be
approved and shall not require the prior approval of
the Secretary.
``(B) On-site evaluations.--Any part of a clinical
training program operated by a foreign graduate medical
school located in a foreign country other than the
country in which the main campus is located, in the
United States, or at an institution in Canada
accredited by the Liaison Committee on Medical
Education, shall not require an on-site evaluation or
specific approval by the institution's medical
accrediting agency if the location is a teaching
hospital accredited by and located within a foreign
country approved by the National Committee on Foreign
Medical Education and Accreditation.
``(d) Failure to Release Information.--An institution outside the
United States that does not provide to the Secretary such information
as may be required by this section shall be ineligible to participate
in the loan program under part D or E of title IV.
``(e) Online Education.--Notwithstanding section 481(b)(2), an
eligible program described in section 600.54 of title 34, Code of
Federal Regulations (as in effect pursuant to subsection (b)) may not
offer more than 50 percent of courses through telecommunications.''.
SEC. 103. ADDITIONAL DEFINITIONS.
(a) Diploma Mill.--Section 103(5)(B) (20 U.S.C. 1003(5)(B)) is
amended by striking ``section 102'' and inserting ``section 101 or
102''.
(b) Correspondence Education.--Section 103(7) (20 U.S.C. 1003(7)) is
amended to read as follows:
``(7) Correspondence education.--The term `correspondence
education' means education that is provided by an institution
of higher education under which--
``(A) the institution provides instructional
materials (including examinations on the materials) by
mail or electronic transmission to students who are
separated from the instructor; and
``(B) interaction between the institution and the
student is limited and the academic instruction by
faculty is not regular and substantive, as assessed by
the institution's accrediting agency or association
under section 496.''.
(c) Early Childhood Education Program.--Section 103(8) (20 U.S.C.
1003(8)) is amended to read as follows:
``(8) Early childhood education program.--The term `early
childhood education program' means a program--
``(A) that serves children of a range of ages from
birth through age five that addresses the children's
cognitive (including language, early literacy, and
early mathematics), social, emotional, and physical
development; and
``(B) that is--
``(i) a Head Start program or an Early Head
Start program carried out under the Head Start
Act (42 U.S.C. 9831 et seq.), including a
migrant or seasonal Head Start program, an
Indian Head Start program, or a Head Start
program or an Early Head Start program that
also receives State funding;
``(ii) a State licensed or regulated child
care program;
``(iii) a State-funded prekindergarten or
child care program;
``(iv) a program authorized under section 619
of the Individuals with Disabilities Education
Act or part C of such Act; or
``(v) a program operated by a local
educational agency.''.
(d) Nonprofit.--Section 103(13) (20 U.S.C. 1003(13)) is amended to
read as follows:
``(13) Nonprofit.--
``(A) The term `nonprofit', when used with respect to
a school, agency, organization, or institution means a
school, agency, organization, or institution owned and
operated by one or more nonprofit corporations or
associations, no part of the net earnings of which
inures, or may lawfully inure, to the benefit of any
private shareholder or individual.
``(B) The term `nonprofit', when used with respect to
foreign institution means--
``(i) an institution that is owned and
operated only by one or more nonprofit
corporations or associations; and
``(ii)(I) if a recognized tax authority of
the institution's home country is recognized by
the Secretary for purposes of making
determinations of an institution's nonprofit
status for purposes of title IV, the
institution is determined by that tax authority
to be a nonprofit educational institution; or
``(II) if no recognized tax authority of the
institution's home country is recognized by the
Secretary for purposes of making determinations
of an institution's nonprofit status for
purposes of title IV, the foreign institution
demonstrates to the satisfaction of the
Secretary that it is a nonprofit educational
institution.''.
(e) Competency-based Education; Competency-based Education Program.--
Section 103 (20 U.S.C. 1003) is amended by adding at the end the
following:
``(25) Competency-based education; competency-based education
program.--
``(A) Competency-based education.--Except as
otherwise provided, the term `competency-based
education' means education that--
``(i) measures academic progress and
attainment--
``(I) by direct assessment of a
student's level of mastery of
competencies;
``(II) by expressing a student's
level of mastery of competencies in
terms of equivalent credit or clock
hours; or
``(III) by a combination of the
methods described in subclauses (I) or
(II) and credit or clock hours; and
``(ii) provides the educational content,
activities, and resources, including
substantive instructional interaction,
including by faculty, and regular support by
the institution, necessary to enable students
to learn or develop what is required to
demonstrate and attain mastery of such
competencies, as assessed by the accrediting
agency or association of the institution of
higher education.
``(B) Competency-based education program.--Except as
otherwise provided, the term `competency-based
education program' means a postsecondary program
offered by an institution of higher education that--
``(i) provides competency-based education,
which upon a student's demonstration or mastery
of a set of competencies identified and
required by the institution, leads to or
results in the award of a certificate, degree,
or other recognized educational credential;
``(ii) ensures title IV funds may be used
only for learning that results from instruction
provided, or overseen, by the institution, not
for the portion of the program of which the
student has demonstrated mastery prior to
enrollment in the program or tests of learning
that are not associated with educational
activities overseen by the institution; and
``(iii) is organized in such a manner that an
institution can determine, based on the method
of measurement selected by the institution
under subparagraph (A)(i), what constitutes a
full-time, three-quarter time, half-time, and
less than half-time workload for the purposes
of awarding and administering assistance under
title IV of this Act, or assistance provided
under another provision of Federal law to
attend an institution of higher education.
``(C) Competency defined.--In this paragraph, the
term `competency' means the knowledge, skill, or
ability demonstrated by a student in a subject area.''.
(f) Pay for Success Initiative.--Section 103 (20 U.S.C. 1003) is
amended by adding at the end the following:
``(26) Pay for success initiative.--The term `pay for success
initiative' has the meaning given the term in section 8101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).''.
(g) Evidence-based.--Section 103 (20 U.S.C. 1003) is amended by
adding at the end the following:
``(27) Evidence-based.--The term `evidence-based' has the
meaning given the term in section 8101(21)(A) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801(21)(A)),
except that such term shall also apply to institutions of
higher education.''.
SEC. 104. REGULATORY RELIEF.
(a) Regulations Repealed.--
(1) Repeal.--The following regulations (including any
supplement or revision to such regulations) are repealed and
shall have no legal effect:
(A) Definition of credit hour.--The definition of the
term ``credit hour'' in section 600.2 of title 34, Code
of Federal Regulations, as added by the final
regulations published by the Department of Education in
the Federal Register on October 29, 2010 (75 Fed. Reg.
66946).
(B) Gainful employment.--Sections 600.10(c),
600.20(d), 668.401 through 668.415, 668.6, and 668.7,
of title 34, Code of Federal Regulations, as added or
amended by the final regulations published by the
Department of Education in the Federal Register on
October 31, 2014 (79 Fed. Reg. 64889 et seq.).
(C) Borrower defense.--Sections 668.41, 668.90,
668.93, 668.171, 668.175, 674.33, 682.211, 682.402(d),
682.405, 682.410, 685.200, 685.205, 685.206,
685.212(k), 685.214, 685.215, 685.222, appendix A to
subpart B of part 685, 685.300, 685.308, of title 34,
Code of Federal Regulations, as added or amended by the
final regulations published by the Department of
Education in the Federal Register on November 1, 2016
(81 Fed. Reg. 75926 et seq.).
(2) Effect of repeal.--To the extent that regulations
repealed--
(A) by subparagraph (A) or subparagraph (B) of
paragraph (1) amended regulations that were in effect
on June 30, 2011, the provisions of the regulations
that were in effect on June 30, 2011, and were so
amended are restored and revived as if the regulations
repealed by such subparagraph had not taken effect; and
(B) by paragraph (1)(C) amended regulations that were
in effect on October 31, 2016, the provisions of the
regulations that were in effect on October 31, 2016,
and were so amended are restored and revived as if the
regulations repealed by paragraph (1)(C) had not taken
effect.
(b) Certain Regulations and Other Actions Prohibited.--
(1) Gainful employment.--The Secretary of Education shall
not, on or after the date of enactment of this Act, promulgate
or enforce any regulation or rule with respect to the
definition or application of the term ``gainful employment''
for any purpose under the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.).
(2) Credit hour.--The Secretary of Education shall not, on or
after the date of enactment of this Act, promulgate or enforce
any regulation or rule with respect to the definition of the
term ``credit hour'' for any purpose under the Higher Education
Act of 1965 (20 U.S.C. 1001 et seq.).
(3) Postsecondary institution ratings system.--The Secretary
of Education shall not carry out, develop, refine, promulgate,
publish, implement, administer, or enforce a postsecondary
institution ratings system or any other performance system to
rate institutions of higher education (as defined in section
101 or 102 of the Higher Education Act of 1965 (20 U.S.C. 1001;
1002)).
PART B--ADDITIONAL GENERAL PROVISIONS
SEC. 111. FREE SPEECH PROTECTIONS.
Part B of title I (20 U.S.C. 1011 et seq.) is amended by
redesignating section 112 as section 112A and section 112A, as so
redesignated, is amended--
(1) in subsection (a)--
(A) by redesignating paragraph (2) as paragraph (4);
and
(B) by inserting after paragraph (1) the following:
``(2) It is the sense of Congress that--
``(A) every individual should be free to profess, and to
maintain, the opinion of such individual in matters of
religion, and that professing or maintaining such opinion
should in no way diminish, enlarge, or affect the civil
liberties or rights of such individual on the campus of an
institution of higher education; and
``(B) no public institution of higher education directly or
indirectly receiving financial assistance under this Act should
limit religious expression, free expression, or any other
rights provided under the First Amendment.
``(3) It is the sense of Congress that--
``(A) free speech zones and restrictive speech codes are
inherently at odds with the freedom of speech guaranteed by the
First Amendment of the Constitution; and
``(B) no public institution of higher education directly or
indirectly receiving financial assistance under this Act should
restrict the speech of such institution's students through such
zones or codes.'';
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively;
(3) by inserting after subsection (a), the following:
``(b) Disclosure of Free Speech Policies.--
``(1) In general.--No institution of higher education shall
be eligible to receive funds under this Act, including
participation in any program under title IV, unless the
institution certifies to the Secretary that the institution has
annually disclosed to current and prospective students any
policies held by the institutions related to protected speech
on campus, including policies limiting where and when such
speech may occur, and the right to submit a complaint under
paragraph (2) if the institution is not in compliance with any
policy disclosed under this paragraph or is enforcing a policy
related to protected speech that has not been disclosed by the
institution under this paragraph.
``(2) Complaint on speech policies.--
``(A) Designation of an employee.--The Secretary
shall designate an employee in the Office of
Postsecondary Education of the Department to receive
complaints from students or student organizations that
believe an institution is not in compliance with any
policy disclosed under paragraph (1) or is enforcing a
policy related to protected speech that has not been
disclosed by the institution under such paragraph.
``(B) Complaint.--A complaint submitted under
subparagraph (A)--
``(i) shall--
``(I) include the provision of the
institution's policy the complainant
believes the institution is not in
compliance with or how the institution
is enforcing a policy related to
protected speech that has not been
disclosed under paragraph (1); and
``(II) be filed not later than 7 days
of the complainant's denial of a right
to speak; and
``(ii) may affirmatively assert that the
violation described in clause (i)(I) is a
violation of the complainant's constitutional
rights.
``(C) Secretarial requirements.--
``(i) Review.--
``(I) In general.--Not later than 7
days after the receipt of the
complaint, the Secretary shall review
the complaint and request a response to
the complaint from the institution.
``(II) Response of secretary.--Not
later than 10 days after the receipt of
the complaint, the Secretary shall make
a decision with respect to such
complaint, without regard to whether
the institution provides a response to
such complaint.
``(ii) Determination that institution failed
to comply.--If, upon the review required under
clause (i), the Secretary determines that the
institution is not in compliance with the
institution's policy disclosed under paragraph
(1), or the institution is enforcing a policy
that was not disclosed under paragraph (1), the
Secretary shall--
``(I)(aa) if the Secretary determines
that the institution was not in
compliance with a disclosed policy,
require the institution to comply with
the disclosed policy and provide the
complainant an opportunity to speak as
any other speaker would be permitted to
speak; or
``(bb) if the Secretary determines
that the institution was enforcing an
undisclosed policy, require the
institution to immediately comply with
disclosure requirement under paragraph
(1) and to allow the complainant to
speak as if such policy were not held
by the institution; and
``(II) require the institution to
post the decision of the Secretary on
the website of the institution, except
in the case in which the complainant
requests that the decision not be
shared.
``(iii) Referral.--If the Secretary believes
the denial of the right to speak may be a
violation of the Constitutional rights of the
complainant, the Secretary shall refer the
complaint to the Department of Justice.
``(D) Limitations.--
``(i) Institution's religious beliefs or
mission.--The Secretary shall defer to the
institution's religious beliefs or mission that
the institution describes in its response to
the complaint as applicable to the complaint.
``(ii) Prohibition on regulations or
guidance.--The Secretary--
``(I) shall not promulgate any
regulations with respect to this
paragraph; and
``(II) may only issue guidance that
explains or clarifies the process for
filing or reviewing a complaint under
this paragraph.''; and
(4) in subsection (d), as redesignated by paragraph (2)--
(A) in paragraph (2), by inserting ``(including such
joining, assembling, and residing for religious
purposes)'' after ``Constitution''; and
(B) in paragraph (3), by inserting ``(including
speech relating to religion)'' after ``Constitution''.
SEC. 112. SENSE OF CONGRESS ON INCLUSION AND RESPECT.
Part B of title I (20 U.S.C. 1011 et seq.) is further amended by
inserting after section 112A (as redesignated by section 111) the
following:
``SEC. 112B. SENSE OF CONGRESS ON INCLUSION AND RESPECT.
``It is the sense of Congress that--
``(1) harassment and violence targeted at students because of
their race, color, religion, sex, or national origin as listed
in section 703 of the Civil Rights Act of 1964 (42 U.S.C.
2000e-2) should be condemned;
``(2) institutions of higher education and law-enforcement
personnel should be commended for their efforts to combat
violence, extremism, and racism, and to protect all members of
the community from harm; and
``(3) Congress is committed to supporting institutions of
higher education in creating safe, inclusive, and respectful
learning environments that fully respect community members from
all backgrounds.''.
SEC. 113. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
Section 114 (20 U.S.C. 1011c) is amended--
(1) by striking ``section 102'' each place it appears and
inserting ``section 101'';
(2) in subsection (b)--
(A) in paragraph (3), by striking ``Except as
provided in paragraph (5), the term'' and inserting
``The term'';
(B) by striking paragraph (5) and inserting the
following:
``(5) Secretarial appointees.--The Secretary may remove any
member who was appointed under paragraph (1)(A) by a
predecessor of the Secretary and may fill the vacancy created
by such removal in accordance with paragraphs (3) and (4).''.
(3) in subsection (c)--
(A) in paragraph (2), by adding ``and'' at the end;
(B) in paragraph (3), by striking the semicolon at
the end and inserting a period; and
(C) by striking paragraphs (4) through (6);
(4) in subsection (e)(2)(D) by striking ``, including any
additional functions established by the Secretary through
regulation''; and
(5) in subsection (f), by striking ``September 30, 2017'' and
inserting ``September 30, 2024''.
SEC. 114. REPEAL OF CERTAIN REPORTING REQUIREMENTS.
(a) Repeals.--The following provisions of the Higher Education Act of
1965 (20 U.S.C. 1001 et seq.) are repealed:
(1) Section 117 (20 U.S.C. 1011f).
(2) Section 119 (20 U.S.C. 1011h).
(b) Conforming Amendments.--
(1) Section 118 is redesignated as section 117.
(2) Sections 120, 121, 122, and 123 are redesignated as
sections 118, 119, 120, and 121, respectively.
(3) Section 485(f)(1)(H) (20 U.S.C. 1092(f)(1)(H)) is amended
by striking ``section 120'' and inserting ``section 118''.
SEC. 115. PROGRAMS ON DRUG AND ALCOHOL ABUSE PREVENTION.
Section 118 (as so redesignated) is amended to read as follows:
``SEC. 118. OPIOID MISUSE AND SUBSTANCE ABUSE PREVENTION PROGRAM.
``(a) Required Programs.--Each institution of higher education
participating in any program under this Act shall adopt and implement
an evidence-based program to prevent substance abuse by students and
employees that, at a minimum, includes the annual distribution to each
student and employee of--
``(1) institutional standards of conduct and sanctions that
clearly prohibit and address the unlawful possession, use, or
distribution of illicit drugs and alcohol by students and
employees; and
``(2) the description of any drug or alcohol counseling,
treatment, rehabilitation, or re-entry programs that are
available to students or employees, including information on
opioid abuse prevention, harm reduction, and recovery.
``(b) Information Availability.--Each institution of higher education
described in subsection (a) shall, upon request, make available to the
Secretary and to the public a copy of the institutional standards
described under subsection (a)(1) and information regarding any
programs described in subsection (a)(2).
``(c) Best Practices.--The Secretary, in consultation with the
Secretary of Health and Human Services and outside experts in the field
of substance use prevention and recovery support, shall--
``(1) share best practices for institutions of higher
education to--
``(A) address and prevent substance use; and
``(B) support students in substance use recovery; and
``(2) if requested by an institution of higher education,
provide technical assistance to such institution to implement a
practice under paragraph (1).''.
SEC. 116. CAMPUS ACCESS FOR RELIGIOUS GROUPS.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections
111 through 115 of this part) is amended by adding at the end the
following:
``SEC. 122. CAMPUS ACCESS FOR RELIGIOUS GROUPS.
``None of the funds made available under this Act may be provided to
any public institution of higher education that denies to a religious
student organization any right, benefit, or privilege that is generally
afforded to other student organizations at the institution (including
full access to the facilities of the institution and official
recognition of the organization by the institution) because of the
religious beliefs, practices, speech, leadership and membership
standards, or standards of conduct of the religious student
organization.''.
SEC. 117. SECRETARIAL PROHIBITIONS.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections
111 through 116 of this part) is amended by adding at the end the
following:
``SEC. 123. SECRETARIAL PROHIBITIONS.
``(a) In General.--Nothing in this Act shall be construed to
authorize or permit the Secretary to promulgate any rule or regulation
that exceeds the scope of the explicit authority granted to the
Secretary under this Act.
``(b) Definitions.--The Secretary shall not define any term that is
used in this Act in a manner that is inconsistent with the scope of
this Act, including through regulation or guidance.
``(c) Requirements.--The Secretary shall not impose, on an
institution or State as a condition of participation in any program
under this Act, any requirement that exceeds the scope of the
requirements explicitly set forth in this Act for such program.''.
SEC. 118. ENSURING EQUAL TREATMENT BY GOVERNMENTAL ENTITIES.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections
111 through 117 of this part) is further amended by adding at the end
the following:
``SEC. 124. ENSURING EQUAL TREATMENT BY GOVERNMENTAL ENTITIES.
``(a) In General.--Notwithstanding any other provision of law, no
government entity shall take any adverse action against an institution
of higher education that receives funding under title IV, if such
adverse action--
``(1)(A) is being taken by a government entity that--
``(i) is a department, agency, or instrumentality of
the Federal Government; or
``(ii) receives Federal funds; or
``(B) would affect commerce with foreign nations, among the
several States, or with Indian Tribes; and
``(2) has the effect of prohibiting or penalizing the
institution for acts or omissions by the institution that are
in furtherance of its religious mission or are related to the
religious affiliation of the institution.
``(b) Assertion by Institution.--An actual or threatened violation of
subsection (a) may be asserted by an institution of higher education
that receives funding under title IV as a claim or defense in a
proceeding before any court. The court shall grant any appropriate
equitable relief, including injunctive or declaratory relief.
``(c) Rule of Construction.--Nothing in this section shall be
construed to alter or amend--
``(1) title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.);
``(2) section 182 of the Elementary and Secondary Education
Amendments Act of 1966 (42 U.S.C. 2000d-5); or
``(3) section 2 of the Elementary and Secondary Education
Amendments Act of 1969 (42 U.S.C. 2000d-6)
``(d) Definitions.--In this section:
``(1) Adverse action.--The term `adverse action' includes,
with respect to an institution of higher education or the past,
current, or prospective students of such institution--
``(A) the denial or threat of denial of funding,
including grants, scholarships, or loans;
``(B) the denial or threat of denial of access to
facilities or programs;
``(C) the withholding or threat of withholding of any
licenses, permits, certifications, accreditations,
contracts, cooperative agreements, grants, guarantees,
tax-exempt status, or exemptions; or
``(D) any other penalty or denial, or threat of such
other penalty or denial, of an otherwise available
benefit.
``(2) Government entity.--The term `government entity'
means--
``(A) any department, agency, or instrumentality of
the Federal Government;
``(B) a State or political subdivision of a State, or
any agency or instrumentality thereof; and
``(C) any interstate or other inter-governmental
entity.
``(3) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101 or 102.
``(4) Religious mission.--The term `religious mission'
includes an institution of higher education's religious tenets,
beliefs, or teachings, and any policies or decisions related to
such tenets, beliefs, or teachings (including any policies or
decisions concerning housing, employment, curriculum, self-
governance, or student admission, continuing enrollment, or
graduation).''.
SEC. 119. SINGLE-SEX SOCIAL STUDENT ORGANIZATIONS.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections
111 through 118 of this part) is further amended by adding at the end
the following:
``SEC. 125. SINGLE-SEX SOCIAL STUDENT ORGANIZATIONS.
``(a) Non-retaliation Against Single-sex Student Organizations.--An
institution of higher education that has a policy allowing for the
official recognition of a single-sex social student organization may
not--
``(1) require or coerce such a recognized organization to
admit as a member an individual who does not meet the
organization's criteria for single-sex status;
``(2) require or coerce such a recognized organization to
permit an individual described in paragraph (1) to participate
in the activities of the organization;
``(3) take any adverse action against a student on the basis
of the student's membership in such recognized organization; or
``(4) impose any requirement or restriction, including on
timing for accepting new members or membership recruitment, on
such a recognized organization (or its current or prospective
members) based on the organization's single-sex status or its
criteria for defining its single-sex status.
``(b) Construction.--Nothing in this Act shall be construed--
``(1) to create any enforceable right--
``(A) by a local, college, or university student
organization against a national student organization;
or
``(B) by a national student organization against any
local, college, or university student organization;
``(2) to require an institution of higher education to have a
policy allowing for the official recognition of a single-sex
social student organization; or
``(3) to prohibit an institution of higher education from
taking an adverse action against a member of a single-sex
social student organization for reasons other than on the basis
of such student's membership in such organization, such as
academic or non-academic misconduct.
``(c) Adverse Action.--For the purposes of this section, the term
`adverse action' includes the following:
``(1) Expulsion, suspension, probation, censure,
condemnation, reprimand, or any other disciplinary, coercive,
or adverse action taken by an institution of higher education
or administrative unit of such an institution.
``(2) An oral or written warning made by an official of an
institution of higher education acting in the official's
official capacity.
``(3) Denying participation in any education program or
activity.
``(4) Withholding, in whole or in part, any financial
assistance (including scholarships and on-campus employment),
or denying the opportunity to apply for financial assistance, a
scholarship, or on-campus employment.
``(5) Denying or restricting access to on-campus housing.
``(6) Denying any certification or letter of recommendation
that may be required by a student's current or future employer,
a government agency, a licensing board, or an educational
institution or scholarship program to which the student seeks
to apply.
``(7) Denying participation in any sports team, club, or
other student organization, or denying any leadership position
in any sports team, club, or other student organization.''.
SEC. 120. DEPARTMENT STAFF.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections
111 through 119 of this part) is further amended by adding at the end
the following:
``SEC. 126. DEPARTMENT STAFF.
``The Secretary shall--
``(1) not later than 60 days after the date of enactment of
the PROSPER Act, identify the number of Department full-time
equivalent employees who worked on or administered each
education program or project authorized under this Act, as such
program or project was in effect on the day before such date,
and publish such information on the Department's website;
``(2) not later than 60 days after such date, identify the
number of full-time equivalent employees who worked on or
administered each program or project authorized under this Act,
as such program or project was in effect on the day before such
date, that has been eliminated or consolidated since such date;
``(3) not later than 1 year after such date, reduce the
workforce of the Department by the number of full-time
equivalent employees the Department identified under paragraph
(2); and
``(4) not later than 1 year after such date, report to the
Congress on--
``(A) the number of full-time equivalent employees
associated with each program or project authorized
under this Act and administered by the Department;
``(B) the number of full-time equivalent employees
who were determined to be associated with eliminated or
consolidated programs or projects described in
paragraph (2);
``(C) how the Secretary has reduced the number of
full-time equivalent employees as described in
paragraph (3);
``(D) the average salary of the full-time equivalent
employees described in subparagraph (B) whose positions
were eliminated; and
``(E) the average salary of the full-time equivalent
employees who work on or administer a program or
project authorized by the Department under this Act,
disaggregated by employee function within each such
program or project.''.
SEC. 120A. DEPARTMENT OF HOMELAND SECURITY RECRUITING ON CAMPUS.
Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections
111 through 120 of this part) is further amended by adding at the end
the following:
``SEC. 127. DEPARTMENT OF HOMELAND SECURITY RECRUITING ON CAMPUS.
``None of the funds made available under this Act may be provided to
any institution of higher education that has in effect a policy or
practice that either prohibits, or in effect prevents, the Secretary of
Homeland Security from gaining access to campuses or access to students
(who are 17 years of age or older) on campuses, for purposes of
Department of Homeland Security recruiting in a manner that is at least
equal in quality and scope to the access to campuses and to students
that is provided to any other employer.''.
PART C--COST OF HIGHER EDUCATION
SEC. 121. COLLEGE DASHBOARD WEBSITE.
(a) Establishment.--Section 132 (20 U.S.C. 1015a) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the
following new paragraph:
``(1) College dashboard website.--The term `College Dashboard
website' means the College Dashboard website required under
subsection (d).''.
(B) in paragraph (2), by striking ``first-time,'';
(C) in paragraph (3), in the matter preceding
subparagraph (A), by striking ``first-time,''; and
(D) in paragraph (4), by striking ``first-time,'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``first-time,'';
and
(B) in paragraph (2), by striking ``first-time,'';
(3) by striking subsections (c) through (g), (j), and (l);
(4) by redesignating subsections (h), (i), and (k) as
subsections (c), (d), and (e), respectively; and
(5) by striking subsection (d) (as so redesignated) and
inserting the following new subsection:
``(d) Consumer Information.--
``(1) Availability of title iv institution information.--The
Secretary shall develop and make publicly available a website
to be known as the `College Dashboard website' in accordance
with this section and prominently display on such website, in
simple, understandable, and unbiased terms for the most recent
academic year for which satisfactory data are available, the
following information with respect to each institution of
higher education that participates in a program under title IV:
``(A) A link to the website of the institution.
``(B) An identification of the type of institution as
one of the following:
``(i) A four-year public institution of
higher education.
``(ii) A four-year private, nonprofit
institution of higher education.
``(iii) A four-year private, proprietary
institution of higher education.
``(iv) A two-year public institution of
higher education.
``(v) A two-year private, nonprofit
institution of higher education.
``(vi) A two-year private, proprietary
institution of higher education.
``(vii) A less than two-year public
institution of higher education.
``(viii) A less than two-year private,
nonprofit institution of higher education.
``(ix) A less than two-year private,
proprietary institution of higher education.
``(C) The number of students enrolled at the
institution--
``(i) as undergraduate students, if
applicable; and
``(ii) as graduate students, if applicable.
``(D) The student-faculty ratio.
``(E) The percentage of degree-seeking or
certificate-seeking undergraduate students enrolled at
the institution who obtain a degree or certificate
within--
``(i) 100 percent of the normal time for
completion of, or graduation from, the program
in which the student is enrolled;
``(ii) 150 percent of the normal time for
completion of, or graduation from, the program
in which the student is enrolled;
``(iii) 200 percent of the normal time for
completion of, or graduation from, the program
in which the student is enrolled; and
``(iv) 300 percent of the normal time for
completion of, or graduation from, the program
in which the student is enrolled, for
institutions at which the highest degree
offered is predominantly an associate's degree.
``(F)(i) The average net price per year for
undergraduate students enrolled at the institution who
received Federal student financial aid under title IV
based on dependency status and an income category
selected by the user of the College Dashboard website
from a list containing the following income categories:
``(I) $0 to $30,000.
``(II) $30,001 to $48,000.
``(III) $48,001 to $75,000.
``(IV) $75,001 to $110,000.
``(V) $110, 001 to $150,000.
``(VI) Over $150,000.
``(ii) A link to the net price calculator for such
institution.
``(G) The percentage of undergraduate and graduate
students who obtained a certificate or degree from the
institution who borrowed Federal student loans--
``(i) set forth separately for each
educational program offered by the institution;
and
``(ii) made available in a format that allows
a user of the College Dashboard website to view
such percentage by selecting from a list of
such educational programs.
``(H) The average Federal student loan debt incurred
by a student who obtained a certificate or degree in an
educational program from the institution and who
borrowed Federal student loans in the course of
obtaining such certificate or degree--
``(i) set forth separately for each
educational program offered by the institution;
and
``(ii) made available in a format that allows
a user of the College Dashboard website to view
such student loan debt information by selecting
from a list of such educational programs.
``(I) The median earnings of students who obtained a
certificate or degree in an educational program from
the institution and who received Federal student
financial aid under title IV in the course of obtaining
such certificate or degree--
``(i) in the fifth and tenth years following
the year in which the students obtained such
certificate or degree;
``(ii) set forth separately by educational
program; and
``(iii) made available in a format that
allows a user of the College Dashboard website
to view such median earnings information by
selecting from a list of such educational
programs.
``(J) A link to the webpage of the institution
containing campus safety data with respect to such
institution.
``(2) Additional information.--The Secretary shall publish on
websites that are linked to through the College Dashboard
website, for the most recent academic year for which
satisfactory data is available, the following information with
respect to each institution of higher education that
participates in a program under title IV:
``(A) Enrollment.--The following enrollment
information:
``(i) The percentages of male and female
undergraduate students enrolled at the
institution.
``(ii) The percentages of undergraduate
students enrolled at the institution--
``(I) full-time; and
``(II) less than full-time.
``(iii) In the case of an institution other
than an institution that provides all courses
and programs through online education, of the
undergraduate students enrolled at the
institution--
``(I) the percentage of such students
who are residents of the State in which
the institution is located;
``(II) the percentage of such
students who are not residents of such
State; and
``(III) the percentage of such
students who are international
students.
``(iv) The percentages of undergraduate
students enrolled at the institution,
disaggregated by--
``(I) race and ethnic background;
``(II) classification as a student
with a disability;
``(III) recipients of a Federal Pell
Grant;
``(IV) recipients of assistance under
a tuition assistance program conducted
by the Department of Defense under
section 1784a or 2007 of title 10,
United States Code, or other
authorities available to the Department
of Defense or veterans' education
benefits (as defined in section 480);
and
``(V) recipients of a Federal student
loan.
``(B) Completion.--The information required under
paragraph (1)(E), disaggregated by--
``(i) recipients of a Federal Pell Grant;
``(ii) race and ethnic background;
``(iii) classification as a student with a
disability;
``(iv) recipients of assistance under a
tuition assistance program conducted by the
Department of Defense under section 1784a or
2007 of title 10, United States Code, or other
authorities available to the Department of
Defense or veterans' education benefits (as
defined in section 480); and
``(v) recipients of a Federal student loan.
``(C) Costs.--The following cost information:
``(i) The cost of attendance for full-time
undergraduate students enrolled in the
institution who live on campus.
``(ii) The cost of attendance for full-time
undergraduate students enrolled in the
institution who live off campus.
``(iii) The cost of tuition and fees for
full-time undergraduate students enrolled in
the institution.
``(iv) The cost of tuition and fees per
credit hour or credit hour equivalency for
undergraduate students enrolled in the
institution less than full time.
``(v) In the case of a public institution of
higher education (other than an institution
described in clause (vi)) and notwithstanding
subsection (b)(1), the costs described in
clauses (i) and (ii) for--
``(I) full-time students enrolled in
the institution who are residents of
the State in which the institution is
located; and
``(II) full-time students enrolled in
the institution who are not residents
of such State.
``(vi) In the case of a public institution of
higher education that offers different tuition
rates for students who are residents of a
geographic subdivision smaller than a State and
students not located in such geographic
subdivision and notwithstanding subsection
(b)(1), the costs described in clauses (i) and
(ii) for--
``(I) full-time students enrolled at
the institution who are residents of
such geographic subdivision;
``(II) full-time students enrolled at
the institution who are residents of
the State in which the institution is
located but not residents of such
geographic subdivision; and
``(III) full-time students enrolled
at the institution who are not
residents of such State.
``(D) Financial aid.--The following information with
respect to financial aid:
``(i) The average annual grant amount
(including Federal, State, and institutional
aid) awarded to an undergraduate student
enrolled at the institution who receives grant
aid, and the percentage of undergraduate
students receiving such aid.
``(ii) The percentage of undergraduate
students enrolled at the institution receiving
Federal, State, and institutional grants,
student loans, and any other type of student
financial assistance known by the institution,
provided publicly or through the institution,
such as Federal work-study funds.
``(iii) The loan repayment rate (as defined
in section 481B) for each educational program
at such institution.
``(3) Other data matters.--
``(A) Completion data.--The Commissioner of Education
Statistics shall ensure that the information required
under paragraph (1)(E) includes information with
respect to all students at an institution, in a manner
that accurately reflects the actual length of the
program, including students other than first-time,
full-time students and students who transfer to another
institution, in a manner that the Commissioner
considers appropriate.
``(B) Adjustment of income categories.--The Secretary
may annually adjust the range of each of the income
categories described in paragraph (1)(F) to account for
a change in the Consumer Price Index for All Urban
Consumers as determined by the Bureau of Labor
Statistics if the Secretary determines an adjustment is
necessary.
``(4) Institutional comparison.--The Secretary shall include
on the College Dashboard website a method for users to easily
compare the information required under paragraphs (1) and (2)
between institutions.
``(5) Updates.--
``(A) Data.--The Secretary shall update the College
Dashboard website not less than annually.
``(B) Technology and format.--The Secretary shall
regularly assess the format and technology of the
College Dashboard website and make any changes or
updates that the Secretary considers appropriate.
``(6) Consumer testing.--
``(A) In general.--In developing and maintaining the
College Dashboard website, the Secretary, in
consultation with appropriate departments and agencies
of the Federal Government, shall conduct consumer
testing with appropriate persons, including current and
prospective college students, family members of such
students, institutions of higher education, and
experts, to ensure that the College Dashboard website
is usable and easily understandable and provides useful
and relevant information to students and families.
``(B) Recommendations for changes.--The Secretary
shall submit to the authorizing committees any
recommendations that the Secretary considers
appropriate for changing the information required to be
provided on the College Dashboard website under
paragraphs (1) and (2) based on the results of the
consumer testing conducted under subparagraph (A).
``(7) Provision of appropriate links to prospective students
after submission of FAFSA.--The Secretary shall provide to each
student who submits a Free Application for Federal Student Aid
described in section 483 a link to the webpage of the College
Dashboard website that contains the information required under
paragraph (1) for each institution of higher education such
student includes on such Application.
``(8) Interagency coordination.--The Secretary, in
consultation with each appropriate head of a department or
agency of the Federal Government, shall ensure to the greatest
extent practicable that any information related to higher
education that is published by such department or agency is
consistent with the information published on the College
Dashboard website.
``(9) Data collection.--The Commissioner for Education
Statistics shall continue to update and improve the Integrated
Postsecondary Education Data System, including by reducing
institutional reporting burden and improving the timeliness of
the data collected.
``(10) Data privacy.--The Secretary shall ensure any
information made available under this section is made available
in accordance with section 444 of the General Education
Provisions Act (commonly known as the `Family Educational
Rights and Privacy Act of 1974').''.
(b) Conforming Amendments.--The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.), as amended by subsection (a) of this section, is
further amended, by striking ``College Navigator'' each place it
appears and inserting ``College Dashboard''.
(c) References.--Any reference in any law (other than this Act),
regulation, document, record, or other paper of the United States to
the College Navigator website shall be considered to be a reference to
the College Dashboard website.
(d) Development.--The Secretary of Education shall develop and
publish the College Dashboard website required under section 132 (20
U.S.C. 1015a), as amended by this section, not later than one year
after the date of the enactment of this Act.
(e) College Navigator Website Maintenance.--The Secretary shall
maintain the College Navigator website required under section 132 (20
U.S.C. 1015a), as in effect the day before the date of the enactment of
this Act, in the manner required under the Higher Education Act of
1965, as in effect on such day, until the College Dashboard website
referred to in subsection (d) is complete and publicly available on the
Internet.
SEC. 122. NET PRICE CALCULATORS.
Subsection (c) of section 132 (20 U.S.C. 1015a), as so redesignated
by section 121(a)(4) of this Act, is amended--
(1) by redesignating paragraph (4) as paragraph (6); and
(2) by inserting after paragraph (3) the following new
paragraphs:
``(4) Minimum requirements for net price calculators.--Not
later than 1 year after the date of the enactment of the
PROSPER Act, a net price calculator for an institution of
higher education shall meet the following requirements:
``(A) The link for the calculator shall--
``(i) be clearly labeled as a net price
calculator and prominently, clearly, and
conspicuously posted in locations on the
website of such institution where information
on costs and aid is provided and any other
location that the institution considers
appropriate; and
``(ii) match in size and font to the other
prominent links on the webpage where the link
for the calculator is displayed.
``(B) The webpage displaying the results for the
calculator shall specify at least the following
information:
``(i) The net price (as calculated under
subsection (a)(3)) for such institution, which
shall be the most visually prominent figure on
the results screen.
``(ii) Cost of attendance, including--
``(I) tuition and fees;
``(II) average annual cost of room
and board for the institution for a
full-time undergraduate student
enrolled in the institution;
``(III) average annual cost of books
and supplies for a full-time
undergraduate student enrolled in the
institution; and
``(IV) estimated cost of other
expenses (including personal expenses
and transportation) for a full-time
undergraduate student enrolled in the
institution.
``(iii) Estimated total need-based grant aid
and merit-based grant aid from Federal, State,
and institutional sources that may be available
to a full-time undergraduate student.
``(iv) Percentage of the full-time
undergraduate students enrolled in the
institution that received any type of grant aid
described in clause (iii).
``(v) The disclaimer described in paragraph
(6).
``(vi) In the case of a calculator that--
``(I) includes questions to estimate
the eligibility of a student or
prospective student for veterans'
education benefits (as defined in
section 480) or educational benefits
for active duty service members, such
benefits are displayed on the results
screen in a manner that clearly
distinguishes such benefits from the
grant aid described in clause (iii); or
``(II) does not include questions to
estimate eligibility for the benefits
described in subclause (I), the results
screen indicates that certain students
(or prospective students) may qualify
for such benefits and includes a link
to information about such benefits.
``(C) The institution shall populate the calculator
with data from an academic year that is not more than 2
academic years prior to the most recent academic year.
``(5) Prohibition on use of data collected by the net price
calculator.--A net price calculator for an institution of
higher education shall--
``(A) clearly indicate which questions are required
to be completed for an estimate of the net price from
the calculator;
``(B) in the case of a calculator that requests
contact information from users, clearly mark such
requests as optional and provide for an estimate of the
net price from the calculator without requiring users
to enter such information; and
``(C) prohibit any personally identifiable
information provided by users from being sold or made
available to third parties.''.
SEC. 123. TEXT BOOK INFORMATION.
Section 133(b)(5) (20 U.S.C. 1015b(b)(5)) is amended by striking
``section 102'' and inserting ``section 101 or 102''.
SEC. 124. REVIEW OF CURRENT DATA COLLECTION AND FEASIBILITY STUDY OF
IMPROVED DATA COLLECTION.
Part C of title I (20 U.S.C. 1015 et seq.) is amended by adding at
the end the following:
``SEC. 138. REVIEW OF CURRENT DATA COLLECTION AND FEASIBILITY STUDY OF
IMPROVED DATA COLLECTION.
``(a) In General.--Not later than 2 years after the date of the
enactment of the PROSPER Act, the Secretary shall, in order to help
improve the information available to students and families and to
eliminate significant and burdensome data collection requirements
placed on institutions under this Act--
``(1) complete a review of all data reporting requirements on
institutions under this Act;
``(2) determine which requirements are duplicative or no
longer necessary to provide meaningful information for
compliance, accountability, or transparency in decision making;
and
``(3) examine the best way to collect data that includes all
students from institutions that will--
``(A) eliminate or reduce the burden and duplication
of data reporting; and
``(B) capture the data necessary to ensure
compliance, accountability, and transparency in
decision making which shall include, at a minimum--
``(i) enrollment;
``(ii) retention;
``(iii) transfer;
``(iv) completion; and
``(v) post-collegiate earnings; and
``(4) implement the changes necessary to improve the data
reporting process for institutions, and submit a report to the
authorizing committees on any legislative changes necessary to
make such improvements.
``(b) Consultation.--In conducting the review under subsection
(a)(1), the Secretary shall consult with--
``(1) all applicable offices within the Department to ensure
the review captures all data reporting requirements under this
Act; and
``(2) relevant stakeholders, including students, parents,
institutions of higher education, and privacy experts.
``(c) Data Collection and Reporting.--In examining the best way to
collect data under subsection (a)(3), the Secretary shall explore the
feasibility of working with the National Student Clearinghouse to
establish a third-party method to collect and produce institution and
program-level analysis of the data determined necessary to report, and
how such data reported to the clearinghouse could be secured, while
considering the following:
``(1) Whether data reported to the clearinghouse can
accurately reflect institutional and program-level enrollment,
retention, transfer, and completion rates.
``(2) How much duplication of reporting can be eliminated and
if such reporting can replace the reporting to the Integrated
Postsecondary Education Data System (IPEDS), including whether
the data quality will be maintained or improved from the
current data provided to the Department through IPEDS.
``(3) Whether such reporting to the clearinghouse can protect
the confidentiality of the reported data, while providing more
accurate institutional performance measures.
``(4) Whether such reporting can be made compatible with
systems that include post-graduation outcomes including
employment and earnings data.
``(5) Whether the use of the clearinghouse for such data
reporting will change the current interaction between
institutions and the clearinghouse.
``(6) Whether the clearinghouse can meet the requirements of
such reporting without transferring any disaggregated data that
would be personally identifiable to the Department of
Education.
``(7) Whether the clearinghouse can ensure the Department of
Education would never have access to any health data, student
discipline records or data, elementary and secondary education
data, or information relating to citizenship or national origin
status, course grades, individual postsecondary entrance
examination results, political affiliation, or religion, as a
result of producing information for program level analysis of
the data received from institutions of higher education.
``(8) Whether the clearinghouse can provide the analysis
under this subsection without maintaining or transferring,
publishing, or submitting any data containing the information
described in paragraph (7) to any entity, including any Federal
or State agency.
``(d) Interim Report.--Not later than 1 year after the date of the
enactment of the PROSPER Act, the Secretary shall submit to the
authorizing committees a report on the Secretary's progress in carrying
out this section.
``(e) Rule of Construction.--Nothing in this section shall be
construed to authorize the development of a nationwide database of
personally identifiable information on individuals involved in studies
or other collections of data under this Act.''.
PART D--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
SEC. 131. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL
STUDENT FINANCIAL ASSISTANCE.
Section 141 (20 U.S.C. 1018) is amended--
(1) in subsection (a)(2)--
(A) by redesignating subparagraphs (F) and (G) as
subparagraphs (H) and (I), respectively; and
(B) by inserting after subparagraph (E) the
following:
``(F) to maximize transparency in the operation of
Federal student financial assistance programs;
``(G) to maximize stakeholder engagement in the
operation of and accountability for such programs;'';
(2) in subsection (b)--
(A) in paragraph (1)(C)--
(i) in clause (i), by striking ``and'' at the
end;
(ii) in clause (ii), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(iii) acquiring senior managers and other
personnel with demonstrated management ability
and expertise in consumer lending.'';
(B) in paragraph (2) by adding at the end the
following:
``(C) Collecting input from stakeholders on the
operation of all Federal student assistance programs
and accountability practices relating to such programs,
and ensuring that such input informs operation of the
PBO and is provided to the Secretary to inform policy
creation related to Federal student financial
assistance programs.''; and
(C) in paragraph (6)--
(i) in subparagraph (A), by striking ``The
Secretary'' and inserting ``Not less frequently
than once annually, the Secretary'';
(ii) by redesignating subparagraph (B) as
subparagraph (C); and
(iii) by inserting after subparagraph (A) the
following: :
``(B) Report.--On an annual basis, after carrying out
the consultation required under subparagraph (A), the
Secretary and the Chief Operating Officer shall jointly
submit to the authorizing committees a report that
includes--
``(i) a summary of the consultation; and
``(ii) a description of any actions taken as
a result of the consultation.''.
(3) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by striking ``Each year,'' and
inserting ``Not less frequently than
once every three years,''; and
(II) by striking ``succeeding 5'' and
inserting ``succeeding 3'';
(ii) by amending subparagraph (B) to read as
follows:
``(B) Consultation.--
``(i) Plan development.--Beginning not later
than 12 months before issuing each 3-year
performance plan under subparagraph (A), the
Secretary and the Chief Operating Officer shall
consult with students, institutions of higher
education, Congress, lenders, and other
interested parties regarding the development of
the plan. In carrying out such consultation,
the Secretary shall seek public comment
consistent with the requirements of subchapter
II of chapter 5 of title 5, United States Code
(commonly known as the `Administrative
Procedure Act').
``(ii) Revision.--Not later than 90 days
before implementing any revision to the
performance plan described in subparagraph (A),
the Secretary shall consult with students,
institutions of higher education, Congress,
lenders, and other interested parties regarding
such revision.'';
(iii) in subparagraph (C)--
(I) in the matter preceding clause
(i), by inserting ``and target dates
upon which such action steps will be
taken and such goals will be achieved''
after ``achieve such goals'';
(II) by redesignating clause (v) as
clause (vi);
(III) by inserting after clause (iv)
the following:
``(v) Ensuring transparency.--Maximizing the
transparency in the operations of the PBO,
including complying with the data reporting
requirements under section 144.'';
(B) in paragraph (2)--
(i) by striking ``5-year'' and inserting ``3-
year'';
(ii) in subparagraph (C), by inserting ``,
including an explanation of the specific steps
the Secretary and the Chief Operating Officer
will take to address any such goals that were
not achieved'' before the period;
(iii) in subparagraph (D), by inserting ``,
in the aggregate and per individual'' before
the period;
(iv) in subparagraph (E), by striking
``Recommendations'' and inserting ``Specific
recommendations'';
(v) by redesignating subparagraph (F) as
subparagraph (G); and
(vi) by inserting after subparagraph (E), the
following:
``(F) A description of the performance evaluation
system developed under subsection (d)(6).''.
(C) in paragraph (3)--
(i) in the matter preceding subparagraph (A),
by striking ``establish appropriate means to'';
(ii) in subparagraph (A), by striking ``;
and'' and inserting ``and the PBO;'';
(iii) in subparagraph (B), by striking the
period at the end and inserting ``and the PBO;
and''; and
(iv) by adding at the end the following:
``(C) through a nationally-representative survey,
that at a minimum shall evaluate the degree of
satisfaction with the delivery system and the PBO.'';
(4) in subsection (d)--
(A) in paragraph (2), by striking ``The Secretary may
reappoint'' and inserting ``Except as provided in
paragraph (4)(C),''
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) by inserting ``specific,'' after
``set forth''; and
(II) by inserting ``and metrics used
to measure progress toward such goals''
before the period;
(ii) by amending subparagraph (B) to read as
follows:
``(B) Transmittal and public availability.--The
Secretary shall--
``(i) transmit to the authorizing committees
the final version of, and any subsequent
revisions to, the agreement entered into under
subparagraph (A); and
``(ii) before the expiration of the period of
5 business days beginning after the date on
which the agreement is transmitted under clause
(i), make such agreement publicly available on
a publicly accessible website of the Department
of Education.''.
(iii) by adding at the end the following:
``(C) Loss of eligibility.--If the agreement under
subparagraph (A) is not made publicly available before
the expiration of the period described in subparagraph
(B)(ii), the Chief Operating Officer shall not be
eligible for reappointment under paragraph (2).''; and
(C) in paragraph (5), by amending subparagraph (B) to
read as follows:
``(B) Bonus.--In addition, the Chief Operating
Officer may receive a bonus in the following amounts:
``(i) For a period covered by a performance
agreement entered into under paragraph (4)
before the date of the enactment of the PROSPER
Act, an amount that does not exceed 50 percent
of the annual rate basic pay of the Chief
Operating Officer, based upon the Secretary's
evaluation of the Chief Operating Officer's
performance in relation to the goals set forth
in the performance agreement.
``(ii) For a period covered by a performance
agreement entered into under paragraph (4) on
or after the date of the enactment of the
PROSPER Act, an amount that does not exceed 40
percent of the annual rate basic pay of the
Chief Operating Officer, based upon the
Secretary's evaluation of the Chief Operating
Officer's performance in relation to the goals
set forth in the performance agreement.''.
(D) by adding at the end the following:
``(6) Performance evaluation system.--The Secretary shall
develop a system to evaluate the performance of the Chief
Operating Officer and any senior managers appointed by such
Officer under subsection (e). Such system shall--
``(A) take into account the extent to which each
individual attains the specific, measurable
organizational and individual goals set forth in the
performance agreement described in paragraph (4)(A) and
subsection (e)(2) (as the case may be); and
``(B) evaluate each individual using a rating system
that accounts for the full spectrum of performance
levels, from the failure of an individual to meet the
goals described in clause (i) to an individual's
success in meeting or exceeding such goals.'';
(5) in subsection (e)--
(A) in paragraph (2), by striking ``organization and
individual goals'' and inserting ``specific, measurable
organization and individual goals and the metrics used
to measure progress toward such goals'';
(B) in paragraph (3), by amending subparagraph (B) to
read as follows:
``(B) Bonus.--In addition, a senior manager may
receive a bonus in the following amounts:
``(i) For a period covered by a performance
agreement entered into under paragraph (2)
before the date of the enactment of the PROSPER
Act, an amount such that the manager's total
annual compensation does not exceed 125 percent
of the maximum rate of basic pay for the Senior
Executive Service, including any applicable
locality-based comparability payment, based
upon the Chief Operating Officer's evaluation
of the manager's performance in relation to the
goals set forth in the performance agreement.
``(ii) For a period covered by a performance
agreement entered into under paragraph (2) on
or after the date of the enactment of the
PROSPER Act, an amount such that the manager's
total annual compensation does not exceed 120
percent of the maximum rate of basic pay for
the Senior Executive Service, including any
applicable locality-based comparability
payment, based upon the Chief Operating
Officer's evaluation of the manager's
performance in relation to the goals set forth
in the performance agreement.''.
(6) by redesignating subsections (f), (g), (h), and (i) as
subsections (g), (h), (i), (j); and
(7) by inserting after subsection (e) the following:
``(f) Advisory Board.--
``(1) Establishment and purpose.--Not later than one year
after the date of the enactment of the PROSPER Act, the
Secretary shall establish an Advisory Board (referred to in
this subsection as the `Board') for the PBO. The purpose of
such Board shall be to conduct oversight over the PBO and the
Chief Operating Officer and senior managers described under
subsection (e) to ensure that the PBO is meeting the purposes
described in this section and the goals in the performance plan
described under such section.
``(2) Membership.--
``(A) Board members.--The Board shall consist of 7
members, one of whom shall be the Secretary.
``(B) Chairman.--A Chairman of the Board shall be
elected by the Board from among its members for a 2-
year term.
``(C) Secretary as an ex officio member.--The
Secretary, ex officio--
``(i) shall--
``(I) serve as a member of the Board;
``(II) be a voting member of the
Board; and
``(III) be eligible to be elected by
the Board to serve as chairman or vice
chairman of the Board; and
``(ii) shall not be subject to the terms or
compensation requirements described in this
paragraph that are applicable to the other
members of the Board.
``(D) Additional board members.--Each member of the
Board (excluding the Secretary) shall be appointed by
the Secretary.
``(E) Terms.--
``(i) In general.--Each Board member, except
for the Secretary and the Board members
described in clause (ii)(II), shall serve 5-
year terms.
``(ii) Initial members.--
``(I) First 3 members.--The first 3
members confirmed to serve on the Board
after the date of enactment of the
PROSPER Act shall serve for 5-year
terms.
``(II) Other members.--The fourth,
fifth, and sixth members confirmed to
serve on the Board after such date of
enactment shall serve for 3-year terms.
``(iii) Reappointment.--The Secretary may
reappoint a Board member for one additional 5-
year term.
``(iv) Vacancies.--
``(I) In general.--Not later than 30
days after a vacancy of the Board
occurs, the Secretary shall publish a
Federal Register notice soliciting
nominations for the position.
``(II) Filling vacancy.--Not later
than 90 days after such vacancy occurs,
such vacancy shall be filled in the
same manner as the original appointment
was made, except that--
``(aa) the appointment shall
be for the remainder of the
uncompleted term; and
``(bb) such member may be
reappointed under clause (iii).
``(F) Membership qualifications and prohibitions.--
``(i) Qualifications.--The members of the
board, other than the Secretary, shall be
appointed without regard to political
affiliation and solely on the basis of their
professional experience and expertise in--
``(I) the management of large and
financially significant organizations,
including banks and commercial lending
companies; or
``(II) Federal student financial
assistance programs.
``(ii) Conflicts of interest among board
members.--Before appointing members of the
Board, the Secretary shall establish rules and
procedures to address any potential conflict of
interest between a member of the Board and
responsibilities of the Board, including
prohibiting membership for individuals with a
pecuniary interest in the activities of the
PBO.
``(G) No compensation.--Board members shall serve
without pay.
``(H) Expenses of board members.--Each member of the
Board shall receive travel expenses and other
permissible expenses, including per diem in lieu of
subsistence, in accordance with applicable provisions
under title 5, United States Code.
``(3) Board responsibilities.--The Board shall have the
following responsibilities:
``(A) Conducting general oversight over the
functioning and operation of the PBO, including--
``(i) ensuring that the reporting and
planning requirements of this section are
fulfilled by the PBO; and
``(ii) ensuring that the Chief Operating
Officer acquires senior managers with
demonstrated management ability and expertise
in consumer lending (as described in subsection
(b)(1)(C)(iii)).
``(B) Approving the appointment or reappointment of a
Chief Operating Officer, except that the board shall
have no authority to approve or disapprove the
reappointment of the Chief Operating Officer who holds
such position on the date of enactment of the PROSPER
Act.
``(C) Making recommendations with respect to the
suitability of any bonuses proposed to be provided to
the Chief Operating Officer or senior managers
described under subsections (d) and (e), to ensure that
a bonus is not awarded to the Officer or a senior
manager in a case in which such Officer or manager has
failed to meet goals set for them under the relevant
performance plan under subsections (d)(4) and (e)(2),
respectively.
``(D) Approving any performance plan established for
the PBO.
``(4) Board operations.--
``(A) Meetings.--The Board shall meet at least twice
per year and at such other times as the chairperson
determines appropriate.
``(B) Powers of chairperson.--Except as otherwise
provided by a majority vote of the Board, the powers of
the chairperson shall include--
``(i) establishing committees;
``(ii) setting meeting places and times;
``(iii) establishing meeting agendas; and
``(iv) developing rules for the conduct of
business.
``(C) Quorum.--Four members of the Board shall
constitute a quorum. A majority of members present and
voting shall be required for the Board to take action.
``(D) Administration.--The Federal Advisory Committee
Act shall not apply with respect to the Board, other
than sections 10, 11 and 12 of such Act.
``(5) Annual report.--
``(A) In general.--Not less frequently than once
annually, the Board shall submit to the authorizing
committees a report on the results of the work
conducted by the PBO.
``(B) Contents.--Each report under clause (i) shall
include--
``(i) a description of the oversight work of
the Board and the results of such work;
``(ii) a description of statutory
requirements of this section and section 144
where the PBO is not in compliance;
``(iii) recommendations on the appointment or
reappointment of a Chief Operating Officer;
``(iv) recommendations regarding bonus
payments for the Chief Operating Officer and
senior managers; and
``(v) recommendations for the authorizing
Committees and the Appropriations Committees
on--
``(I) any statutory changes needed
that would enhance the ability of the
PBO to meet the purposes of this
section; and
``(II) any recommendations for the
Secretary or the Chief Operating
Officer that will improve the
operations of the PBO.
``(vi) Issuance and public release.--Each
report under clause (i) shall be posted on the
publicly accessible website of the Department
of Education.
``(vii) PBO recommendations.--Not later than
180 days after the submission of each report
under clause (i), the Chief Operating Officer
shall respond to each recommendation
individually, which shall include a description
of such actions that the Officer is undertaking
to address such recommendation.
``(C) Staff.--
``(i) In general.--The Secretary may appoint
to the Board not more than 7 employees to
assist in carrying out the duties of the Board
under this section.
``(ii) Technical employees.--Such
appointments may include, for terms not to
exceed 3 years and without regard to the
provisions of title 5, United States Code,
governing appointments in the competitive
service, not more than 3 technical employees
who may be paid without regard to the
provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to
classification and General Schedule pay rates,
but no individual so appointed shall be paid in
excess of the rate authorized for GS-18 of the
General Schedule.
``(iii) Detailees.--The Secretary may detail,
on a reimbursable basis, any of the personnel
of the Department for the purposes described in
clause (i). Such employees shall serve without
additional pay, allowances, or benefits.
``(iv) Statutory construction.--Nothing in
this subparagraph shall be construed to provide
for an increase in the total number of
permanent full-time equivalent positions in the
Department or any other department or agency of
the Federal Government.
``(6) Briefing on activities of the oversight board.--The
Secretary shall, upon request, provide a briefing to the
authorizing committees on the steps the Board has taken to
carry out its responsibilities under this subsection.''.
SEC. 132. ADMINISTRATIVE DATA TRANSPARENCY.
Part D of title I (20 U.S.C. 1018 et seq.) is amended by adding at
the end the following:
``SEC. 144. ADMINISTRATIVE DATA TRANSPARENCY.
``(a) In General.--To improve the transparency of the student aid
delivery system, the Secretary and the Chief Operating Officer shall
collect and publish information on the performance of student loan
programs under title IV in accordance with this section.
``(b) Disclosures.--
``(1) In general.--The Secretary and the Chief Operating
Officer shall publish on a publicly accessible website of the
Department of Education the following aggregate statistics with
respect to the performance of student loans under title IV:
``(A) The number of borrowers who paid off the total
outstanding balance of principal and interest on their
loans before the end of the 10-year or consolidated
loan repayment schedule.
``(B) The number of loans under each type of
deferment and forbearance.
``(C) The average length of time a loan stays in
default.
``(D) The percentage of loans in default among
borrowers who completed the program of study for which
the loans were made.
``(E) The number of borrowers enrolled in an income-
based repayment plan who make monthly payments of $0
and the average student loan debt of such borrowers.
``(F) The number of students whose loan balances are
growing because such students are not paying the full
amount of interest accruing on the loans.
``(G) The number of borrowers entering income-based
repayment plans to get out of default.
``(H) The number of borrowers in income-based
repayment plans who have outstanding student loans from
graduate school, and the average balance of such loans.
``(I) With respect to the public service loan
forgiveness program under section 455(m)--
``(i) the number of applications submitted
and processed;
``(ii) the number of borrowers granted loan
forgiveness;
``(iii) the amount of loan debt forgiven; and
``(iv) the number of borrowers granted loan
forgiveness, and the amount of the loan debt
forgiven, disaggregated by each category of
employer that employs individuals in public
service jobs (as defined in section
455(m)(3)(B), including--
``(I) the Federal Government, or a
State or local government;
``(II) 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; and
``(III) a non-profit organization not
described in subclause (II).
``(J) Any other aggregate statistics the Secretary
and the Chief Operating Officer determine to be
necessary to adequately inform the public of the
performance of the student loan programs under title
IV.
``(2) Disaggregation.--The statistics described in clauses
(i) through (iii) of paragraph (1)(I) shall be disaggregated--
``(A) by the number or amount for most recent
quarter;
``(B) by the total number or amount as of the date of
publication;
``(C) by repayment plan;
``(D) by borrowers seeking loan forgiveness for loans
made for an undergraduate course of study; and
``(E) by borrowers seeking loan forgiveness for loans
made for a graduate course of study.
``(3) Quarterly updates.--The statistics published under
paragraph (1) shall be updated not less frequently than once
each fiscal quarter.
``(c) Information Collection.--
``(1) In general.--The Secretary and the Chief Operating
Officer shall collect information on the performance of student
loans under title IV over time, including--
``(A) measurement of the cash flow generated by such
loans as determined by assessing monthly payments on
the loans over time;
``(B) the income level and employment status of
borrowers during repayment;
``(C) the loan repayment history of borrowers prior
to default;
``(D) the progress of borrowers in making monthly
payments on loans after defaulting on the loans; and
``(E) such other information as the Secretary and the
Chief Operating Officer determine to be appropriate.
``(2) Availability.--
``(A) In general.--The information collected under
paragraph (1) shall be made available biannually to
organizations and researchers that--
``(i) submit to the Secretary and the Chief
Operating officer a request for such
information; and
``(ii) enter into an agreement with the
National Center for Education Statistics under
which the organization or researcher (as the
case may be) agrees to use the information in
accordance with the privacy laws described in
subparagraph (B).
``(B) Privacy protections.--The privacy laws
described in this subparagraph are the following:
``(i) Section 183 of the Education Sciences
Reform Act of 2002 (20 U.S.C. 9573).
``(ii) The Privacy Act of 1974 (5 U.S.C.
552a).
``(iii) Section 444 of the General Education
Provisions Act (commonly known as the `Family
Educational Rights and Privacy Act of 1974')
(20 U.S.C. 1232g).
``(iv) Subtitle A of title V of the E-
Government Act of 2002 (44 U.S.C. 3501 note).
``(C) Format.--The information described in
subparagraph (A) shall be made available in the format
of a data file that contains an statistically accurate,
representative sample of all borrowers of loans under
title IV.
``(d) Data Sharing.--The Secretary and the Chief Operating Officer
may enter into cooperative data sharing agreements with other Federal
or State agencies to ensure the accuracy of information collected and
published under this section.
``(e) Privacy.--The Secretary and the Chief Operating Officer shall
ensure that any information collected, published, or otherwise made
available under this section does not reveal personally identifiable
information.''.
SEC. 133. REPORT BY GAO ON TRANSFER OF FUNCTIONS OF THE OFFICE OF
FEDERAL STUDENT AID TO THE DEPARTMENT OF TREASURY.
(a) Study.--The Comptroller General of the United States shall
conduct a study on the impact of transferring the functions, in whole
or in part, of the Office of Federal Student Aid from the Department of
Education to the Department of the Treasury, which shall include--
(1) the potential impact of such transfer on the Federal
government, including--
(A) any change in cost of administering the program;
and
(B) the duplication of duties by Federal agencies;
(2) an analysis of how the responsibilities and operations of
the Office of Federal Student Aid of the Department of
Education overlaps with relevant responsibilities and
operations at the Department of Treasury;
(3) an analysis of whether the employees of the Department of
Treasury possess the necessary expertise and experience to
manage and oversee the functions of the Office of Federal
Student Aid of the Department of Education; and
(4) the potential impact of such transfer on administrative
costs and staff necessary for carrying out such functions.
(b) Consultation.--In conducting the study under subsection (a), the
Comptroller General of the United States shall consult with
stakeholders, including institutions of higher education, financial aid
administrators, and existing entities that contract with the Office of
Federal Student Aid of the Department of Education, that may be
impacted by the transfer studied under such subsection.
(c) Report.--Not later than 2 years after the date of the enactment
of this Act, the Comptroller General of the United States shall
complete the study under subsection (a) and submit a report to the
House Committee on Education and the Workforce and the Senate Committee
on Health, Education, Labor, and Pensions that includes the results of
such study.
PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATION LOANS
SEC. 141. MODIFICATION OF PREFERRED LENDER ARRANGEMENTS.
(a) In General.--Part E of title I (20 U.S.C. 1019 et seq.) is
amended--
(1) in section 151 (20 U.S.C. 1019(2))--
(A) in paragraph (2), by striking ``section 102'' and
inserting ``section 101 or 102'';
(B) in paragraph (3)--
(i) by striking ``or'' at the end of
subparagraph (B);
(ii) by redesignating subparagraph (C) as
subparagraph (D); and
(iii) by inserting after subparagraph (B),
the following:
``(C) any loan made under part E of title IV after
the date of enactment of the PROSPER Act; or'';
(C) in paragraph (6)(A)--
(i) by striking ``and'' at the end of clause
(ii);
(ii) by redesignating clause (iii) as clause
(iv); and
(iii) by inserting after clause (ii), the
following:
``(iii) in the case of a loan issued or
provided to a student under part E of title IV
on or after the date of enactment of the
PROSPER Act;'';
(D) in paragraph (8)(B)--
(i) by striking ``or'' at the end of clause
(i);
(ii) by redesignating clause (ii) as clause
(iii); and
(iii) by inserting after clause (i), the
following:
``(ii) arrangements or agreements with
respect to loans under part E of title IV;
or'';
(2) in section 152 (20 U.S.C. 1019)--
(A) in subsection (a)(1)--
(i) in subparagraph (B), by amending clause
(i) to read as follows:
``(i) make available to the prospective
borrower on a website or with informational
material, the information the Board of
Governors of the Federal Reserve System
requires the lender to provide to the covered
institution under section 128(e)(11) of the
Truth in Lending Act (15 U.S.C. 1638(e)(11))
for such loan;''; and
(ii) by adding at the end the following:
``(D) Special rule.--Notwithstanding any other
provision of law, a covered institution, or an
institution-affiliated organization of such covered
institution, shall not be required to provide any
information regarding private education loans to
prospective borrowers except for the information
described in subparagraph (B).''; and
(B) in subsection (b)(1)(A)(i), by striking ``part B
or D'' and inserting ``part B, D, or E'';
(3) in section 153 (20 U.S.C. 1019b)--
(A) in subsection (a)--
(i) in paragraph (1)(B)--
(I) in clause (i), by adding ``and''
at the end;
(II) in clause (ii), by striking ``;
and'' at the end and inserting a
period; and
(III) by striking clause (iii); and
(ii) in paragraph (2), by amending
subparagraph (C) to read as follows:
``(C) update such model disclosure form not later
than 180 after the date of enactment of the PROSPER
Act, and periodically thereafter, as necessary.''; and
(B) by amending subsection (c) to read as follows:
``(c) Duties of Covered Institutions and Institution-affiliated
Organizations.--
``(1) Code of conduct.--Each covered institution, and each
institution-affiliated organization of such covered
institution, that has a preferred lender arrangement, shall
comply with the code of conduct requirements of subparagraphs
(A) through (C) of section 487(a)(23).
``(2) Applicable code of conduct.--For purposes of
subparagraph (A), an institution-affiliated organization of a
covered institution shall--
``(A) comply with the code of conduct developed and
published by such covered institution under
subparagraphs (A) and (B) of section 487(a)(23);
``(B) if such institution-affiliated organization has
a website, publish such code of conduct prominently on
the website; and
``(C) administer and enforce such code of conduct by,
at a minimum, requiring that all of such organization's
agents with responsibilities with respect to education
loans be annually informed of the provisions of such
code of conduct.''; and
(4) in section 154 (20 U.S.C. 1019c)--
(A) in the section heading, by inserting before the
period at the end the following: ``or the federal one
loan program'';
(B) by striking ``William D. Ford Direct Loan
Program'' each place it appears and inserting ``William
D. Ford Direct Loan Program or the Federal ONE Loan
Program''
(C) by striking ``part D'' each place it appears and
inserting ``part D or E''; and
(D) in subsection (a)--
(i) by striking ``the development'' and
inserting ``the first update'';
(ii) by striking ``section 153(a)(2)(B)'' and
inserting ``section 153(a)(2)(C)''; and
(iii) by striking ``Federal Direct Stafford
Loans, Federal Direct Unsubsidized Stafford
Loans, and Federal Direct PLUS'' and inserting
``undergraduate, graduate, and parent''.
(b) Limitation.--The Secretary of Education shall not impose,
administer, or enforce any requirements on a covered institution or an
institution-affiliated organization of a covered institution relating
to preferred lender lists or arrangements unless explicitly authorized
by sections 152(a)(1)(B), 153(c), or 487(h)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1019a(a)(1)(B), 1019b(c), or 1094(h),
respectively) as amended by this Act.
PART F--ADDRESSING SEXUAL ASSAULT
SEC. 151. ADDRESSING SEXUAL ASSAULT.
Title I (20 U.S.C. 1001 et seq.) is amended by adding at the end the
following new part:
``PART F--ADDRESSING SEXUAL ASSAULT
``SEC. 161. APPLICATION.
``The requirements of this part shall apply to any institution of
higher education receiving Federal financial assistance under this Act,
including financial assistance provided to students under title IV,
other than--
``(1) an institution outside the United States; or
``(2) an institution that provides instruction primarily
through online courses.
``SEC. 162. CAMPUS CLIMATE SURVEYS.
``(a) Surveys to Measure Campus Attitudes and Climate Regarding
Sexual Assault and Misconduct on Campus.--Each institution of higher
education that is subject to this part shall conduct surveys of its
students to measure campus attitudes towards sexual assault and the
general climate of the campus regarding the institution's treatment of
sexual assault on campus, and shall use the results of the survey to
improve the institution's ability to prevent and respond appropriately
to incidents of sexual assault.
``(b) Contents.--The institution's survey under this section shall
consist of such questions as the institution considers appropriate,
which may (at the option of the institution) include any of the
following:
``(1) Questions on the incidence and prevalence of sexual
assault experienced by students.
``(2) Questions on whether students who experience sexual
assault report such incidents to campus officials or law
enforcement agencies.
``(3) Questions on whether the alleged perpetrators are
students of the institution.
``(4) Questions to test the students' knowledge and
understanding of institutional policies regarding sexual
assault and available campus support services for victims of
sexual assault.
``(5) Questions to test the students' knowledge,
understanding, and retention of campus sexual assault
prevention and awareness programming.
``(6) Questions related to dating violence, domestic
violence, and stalking.
``(c) Other Issues Relating to the Administration of Surveys.--
``(1) Mandatory confidentiality of responses.--The
institution shall ensure that all responses to surveys under
this section are kept confidential and do not require the
respondents to provide personally identifiable information.
``(2) Encouraging use of best practices and appropriate
language.--The institution is encouraged to administer the
surveys under this section in accordance with best practices
derived from peer-reviewed research, and to use language that
is sensitive to potential respondents who may have been victims
of sexual assault.
``(3) Encouraging responses.--The institution shall make a
good faith effort to encourage students to respond to the
surveys.
``(d) Role of Secretary.--
``(1) Development of sample surveys.--The Secretary, in
consultation with relevant stakeholders, shall develop sample
surveys that an institution may elect to use under this
section, and shall post such surveys on a publicly accessible
website of the Department of Education. The Secretary shall
develop sample surveys that are suitable for the various
populations who will participate in the surveys.
``(2) Limit on other activities.--In carrying out this
section, the Secretary--
``(A) may not regulate or otherwise impose conditions
on the contents of an institution's surveys under this
section, except as may be necessary to ensure that the
institution meets the confidentiality requirements of
subsection (c)(1); and
``(B) may not use the results of the surveys to make
comparisons between institutions of higher education.
``(e) Frequency.--An institution of higher education that is subject
to this part shall conduct a survey under this section not less
frequently than once every 3 academic years.
``SEC. 163. SURVIVORS' COUNSELORS.
``(a) Requiring Institutions to Make Counselor Available.--
``(1) In general.--Each institution of higher education that
is subject to this part shall retain the services of qualified
sexual assault survivors' counselors to counsel and support
students who are victims of sexual assault.
``(2) Use of contractors permitted.--At the option of the
institution, the institution may retain the services of
counselors who are employees of the institution or may enter
into agreements with other institutions of higher education,
victim advocacy organizations, or other appropriate sources to
provide counselors for purposes of this section.
``(3) Number.--The institution shall retain such number of
counselors under this section as the institution considers
appropriate based on a reasonable determination of the
anticipated demand for such counselors' services, so long as
the institution retains the services of at least one such
counselor at all times.
``(b) Qualifications.--A counselor is qualified for purposes of this
section if the counselor has completed education specifically designed
to enable the counselor to provide support to victims of sexual
assault, and is familiar with relevant laws on sexual assault as well
as the institution's own policies regarding sexual assault.
``(c) Informing Victims of Available Options and Services.--In
providing services pursuant to this section, a counselor shall--
``(1) inform the victim of sexual assault of options
available to victims, including the procedures the victim may
follow to report the assault to the institution or to a law
enforcement agency; and
``(2) inform the victim of interim measures that may be taken
pending the resolution of institutional disciplinary
proceedings or the conclusion of criminal justice proceedings.
``(d) Confidentiality.--
``(1) Maintaining confidentiality of information.--In
providing services pursuant to this section, a counselor
shall--
``(A) maintain confidentiality with respect to any
information provided by a victim of sexual assault to
the greatest extent permitted under applicable law; and
``(B) notify the victim of any circumstances under
which the counselor is required to report information
to others (including a law enforcement agency)
notwithstanding the general requirement to maintain
confidentiality under subparagraph (A).
``(2) Maintaining privacy of records.--A counselor providing
services pursuant to this section shall be considered a
recognized professional for purposes of section
444(a)(4)(B)(iv) of the General Education Provisions Act
(commonly known as the `Family Educational Rights and Privacy
Act of 1974') (20 U.S.C. 1232g(a)(4)(B)(iv)).
``(e) Limitations.--
``(1) No reporting of incidents under clery act or other
authority.--A counselor providing services pursuant to this
section is not required to report incidents of sexual assault
that are reported to the counselor for inclusion in any report
on campus crime statistics, and shall not be considered part of
a campus police or security department for purposes of section
485(f).
``(2) No coverage of counselors as responsible employees
under title ix.--A counselor providing services pursuant to
this section on behalf of an institution of higher education
shall not be considered a responsible employee of the
institution for purposes of title IX of the Education
Amendments of 1972 (20 U.S.C. 1681 et seq.) or the regulations
promulgated pursuant to such title.
``(f) Notifications to Students.--Each institution of higher
education that is subject to this part shall make a good faith effort
to notify its students of the availability of the services of
counselors pursuant to this section through the statement of policy
described in section 485(f)(8)(B)(vi) and any other methods as the
institution considers appropriate, including disseminating information
through the institution's website, posting notices throughout the
campus, and including information as part of programs to educate
students on sexual assault prevention and awareness.
``SEC. 164. FORM TO DISTRIBUTE TO VICTIMS OF SEXUAL ASSAULT.
``(a) Requirement to Develop and Distribute Form.--Each institution
of higher education that is subject to this part shall develop a one-
page form containing information to provide guidance and assistance to
students who may be victims of sexual assault, and shall make the form
widely available to students.
``(b) Contents of Form.--The form developed under this section shall
contain such information as the institution considers appropriate, and
may include the following:
``(1) Information about the services of counselors which are
available pursuant to section 163, including a statement that
the counselor will provide the maximum degree of
confidentiality permitted under law, and a brief description of
the circumstances under which the counselor may be required to
report information notwithstanding the victim's desire to keep
the information confidential.
``(2) Information about other appropriate campus resources
and resources in the local community, including contact
information.
``(3) Information about where to obtain medical treatment,
and information about transportation services to such medical
treatment facilities, if available.
``(4) Information about the importance of preserving evidence
after a sexual assault.
``(5) Information about how to file a report with local law
enforcement agencies.
``(6) Information about the victim's right to request
accommodations, and examples of accommodations that may be
provided.
``(7) Information about the victim's right to request that
the institution begin an investigation of an allegation of
sexual assault and initiate an institutional disciplinary
proceeding if the alleged perpetrator of the assault is another
student or a member of the faculty or staff of the institution.
``(8) A statement that an institutional disciplinary
proceeding is not a substitute for a criminal justice
proceeding.
``(9) Information about how to report a sexual assault to the
institution, including the designated official or office
responsible for receiving these reports.
``(c) Development of Model Forms.--The Secretary, in consultation
with relevant stakeholders, shall develop model forms that an
institution may use to meet the requirements of this section, and shall
include in such model forms language which may accommodate a variety of
State and local laws and institutional policies. Nothing in this
subsection may be construed to require an institution to use any of the
model forms developed under this subsection.
``SEC. 165. MEMORANDA OF UNDERSTANDING WITH LOCAL LAW ENFORCEMENT
AGENCIES.
``(a) Findings; Purpose.--
``(1) Findings.--Because sexual assault is a serious crime,
coordination and cooperation between institutions of higher
education and law enforcement agencies are critical in ensuring
that reports of sexual assaults on campus are handled in an
appropriate and effective manner. A memorandum of understanding
entered into between an institution and the law enforcement
agency with primary jurisdiction for responding to reports of
sexual assault on the institution's campus is a useful tool to
promote this coordination and cooperation.
``(2) Purpose.--It is the purpose of this section to
encourage each institution of higher education that is subject
to this part to enter into a memorandum of understanding with
the law enforcement agency with primary jurisdiction for
responding to reports of sexual assault on the institution's
campus so that reports of sexual assault on the institution's
campus may be handled in an appropriate and effective manner.
``(b) Contents of Memorandum.--An institution of higher education and
a law enforcement agency entering into a memorandum of understanding
described in this section are encouraged to include in the memorandum
provisions addressing the following:
``(1) An outline of the protocols and a delineation of
responsibilities for responding to a report of sexual assault
occurring on campus.
``(2) A clarification of each party's responsibilities under
existing Federal, State, and local law or policies.
``(3) The need for the law enforcement agency to know about
institutional policies and resources so that the agency can
direct student-victims of sexual assault to such resources.
``(4) The need for the institution to know about resources
available within the criminal justice system to assist
survivors, including the presence of special prosecutor or
police units specifically designated to handle sexual assault
cases.
``(5) If the institution has a campus police or security
department with law enforcement authority, the need to clarify
the relationship and delineate the responsibilities between
such department and the law enforcement agency with respect to
handling incidents of sexual assaults occurring on campus.
``(c) Role of Secretary.--The Secretary, in consultation with the
Attorney General, shall develop best practices for memoranda of
understanding described in this section, and shall disseminate such
best practices on a publicly accessible website of the Department of
Education.
``SEC. 166. DEFINITIONS.
``In this part:
``(1) The term `sexual assault' has the meaning given such
term in section 485(f)(6)(A)(v).
``(2) The terms `dating violence', `domestic violence', and
`stalking', have the meaning given such terms in section
485(f)(6)(A)(i).''.
TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS
SEC. 201. REPEAL.
(a) Repeal.--Title II (20 U.S.C. 1021 et seq.) is repealed.
(b) Part A Transition.--Part A of title II (20 U.S.C. 1022 et seq.),
as in effect on the day before the date of the enactment of this Act,
may be carried out using funds that have been appropriated for such
part until September 30, 2018.
SEC. 202. GRANTS FOR ACCESS TO HIGH-DEMAND CAREERS.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended
by inserting after title I the following:
``TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS
``SEC. 201. APPRENTICESHIP GRANT PROGRAM.
``(a) Purpose.--The purpose of this section is to expand student
access to, and participation in, new industry-led earn-and-learn
programs leading to high-wage, high-skill, and high-demand careers.
``(b) Authorization of Apprenticeship Grant Program.--
``(1) In general.--From the amounts authorized under
subsection (j), the Secretary shall award grants, on a
competitive basis, to eligible partnerships for the purpose
described in subsection (a).
``(2) Duration.--The Secretary shall award grants under this
section for a period of--
``(A) not less than 1 year; and
``(B) not more than 4 years.
``(3) Limitations.--
``(A) Amount.--A grant awarded under this section may
not be in an amount greater than $1,500,000.
``(B) Number of awards.--An eligible partnership or
member of such partnership may not be awarded more than
one grant under this section.
``(C) Administration costs.--An eligible partnership
awarded a grant under this section may not use more
than 5 percent of the grant funds to pay administrative
costs associated with activities funded by the grant.
``(c) Matching Funds.--To receive a grant under this section, an
eligible partnership shall, through cash or in-kind contributions,
provide matching funds from non-Federal sources in an amount equal to
or greater than 50 percent of the amount of such grant.
``(d) Applications.--
``(1) In general.--To receive a grant under this section, an
eligible partnership shall submit to the Secretary at such a
time as the Secretary may require, an application that--
``(A) identifies and designates the business or
institution of higher education responsible for the
administration and supervision of the earn-and-learn
program for which such grant funds would be used;
``(B) identifies the businesses and institutions of
higher education that comprise the eligible
partnership;
``(C) identifies the source and amount of the
matching funds required under subsection (c);
``(D) identifies the number of students who will
participate and complete the relevant earn-and-learn
program within 1 year of the expiration of the grant;
``(E) identifies the amount of time, not to exceed 2
years, required for students to complete the program;
``(F) identifies the relevant recognized
postsecondary credential to be awarded to students who
complete the program;
``(G) identifies the anticipated earnings of
students--
``(i) 1 year after program completion; and
``(ii) 3 years after program completion;
``(H) describes the specific project for which the
application is submitted, including a summary of the
relevant classroom and paid structured on-the-job
training students will receive;
``(I) describes how the eligible partnership will
finance the program after the end of the grant period;
``(J) describes how the eligible partnership will
support the collection of information and data for
purposes of the program evaluation required under
subsection (h); and
``(K) describes the alignment of the program with
State identified in-demand industry sectors.
``(2) Application review process.--
``(A) Review panel.--Applications submitted under
paragraph (1) shall be read by a panel of readers
composed of individuals selected by the Secretary. The
Secretary shall assure that an individual assigned
under this paragraph does not have a conflict of
interest with respect to the applications reviewed by
such individual.
``(B) Composition of review panel.--The panel of
reviewers selected by the Secretary under subparagraph
(A) shall be comprised as follows:
``(i) A majority of the panel shall be
individuals who are representative of
businesses, which may include owners,
executives with optimum hiring authority, or
individuals representing business organizations
or business trade associations.
``(ii) The remainder of the panel shall be
equally divided between individuals who are--
``(I) representatives of institutions
of higher education that offer programs
of two years or less; and
``(II) representatives of State
workforce development boards
established under section 101 of the
Workforce Innovation and Opportunity
Act (29 U.S.C. 3111).
``(C) Review of applications.--The Secretary shall
instruct the review panel selected by the Secretary
under paragraph (2)(A) to evaluate applications using
only the criteria specified in paragraph (1) and make
recommendations with respect to--
``(i) the quality of the applications;
``(ii) whether a grant should be awarded for
a project under this title; and
``(iii) the amount and duration of such
grant.
``(D) Notification.--Not later than June 30 of each
year, the Secretary shall notify each eligible
partnership submitting an application under this
section of--
``(i) the scores given the applicant by the
panel pursuant to this section;
``(ii) the recommendations of the panel with
respect to such application; and
``(iii) the reasons for the decision of the
Secretary in awarding or refusing to award a
grant under this section; and
``(iv) modifications, if any, in the
recommendations of the panel made to the
Secretary.
``(e) Award Basis.--The Secretary shall award grants under this
section on the following basis--
``(1) the number of participants to be served by the grant;
``(2) the anticipated income of program participants in
relation to the regional median income;
``(3) the alignment of the program with State-identified in-
demand industry sectors; and
``(4) the recommendations of the readers under subsection
(d)(2)(C).
``(f) Use of Funds.--Grant funds provided under this section may be
used for--
``(1) the purchase of appropriate equipment, technology, or
instructional material, aligned with business and industry
needs, including machinery, testing equipment, hardware and
software;
``(2) student books, supplies, and equipment required for
enrollment;
``(3) the reimbursement of up to 50 percent of the wages of a
student participating in an earn-and-learn program receiving a
grant under this section;
``(4) the development of industry-specific programing;
``(5) supporting the transition of industry-based
professionals from an industry setting to an academic setting;
``(6) industry-recognized certification exams or other
assessments leading to a recognized postsecondary credential
associated with the earn-and-learn program; and
``(7) any fees associated with the certifications or
assessments described in paragraph (6).
``(g) Technical Assistance.--The Secretary may provide technical
assistance to eligible partnerships awarded under this section
throughout the grant period for purposes of grant management.
``(h) Evaluation.--
``(1) In general.--From the amounts made available under
subsection (j), the Secretary, acting through the Director of
the Institute for Education Sciences, shall provide for the
independent evaluation of the grant program established under
this section that includes the following:
``(A) An assessment of the effectiveness of the grant
program in expanding earn-and-learn program
opportunities offered by employers in conjunction with
institutions of higher education.
``(B) The number of students who participated in
programs assisted under this section.
``(C) The percentage of students participating in
programs assisted under this section who successfully
completed the program in the time described in
subsection (d)(1)(E).
``(D) The median earnings of program participants--
``(i) 1 year after exiting the program; and
``(ii) 3 years after exiting the program.
``(E) The percentage of students participating in
programs assisted under this section who successfully
receive a recognized postsecondary credential.
``(F) The number of students served by programs
receiving funding under this section--
``(i) 2 years after the end of the grant
period;
``(ii) 4 years after the end of the grant
period.
``(2) Prohibition.--Notwithstanding any other provision of
law, the evaluation required by this subsection shall not be
subject to any review outside the Institute for Education
Sciences before such reports are submitted to Congress and the
Secretary.
``(3) Publication.--The evaluation required by this
subsection shall be made publicly available on the website of
the Department.
``(i) Definitions.--In this section:
``(1) Earn-and-learn program.--The term `earn-and-learn
program' means an education program, including an
apprenticeship program, that provides students with structured,
sustained, and paid on-the-job training and accompanying, for
credit, classroom instruction that--
``(A) is for a period of between 3 months and 2
years; and
``(B) leads to, on completion of the program, a
recognized postsecondary credential.
``(2) Eligible partnership.--The term `eligible partnership'
shall mean a consortium that includes--
``(A) 1 or more businesses; and
``(B) 1 or more institutions of higher education.
``(3) In-demand industry sector or occupation.--The term `in-
demand industry sector or occupation' has the meaning given the
term in section 3 of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3102).
``(4) On-the-job training.--The term `on-the-job training'
has the meaning given the term in section 3 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3102).
``(5) Recognized postsecondary credential.--The term
`recognized postsecondary credential' has the meaning given the
term in section 3 of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3102).
``(j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $183,204,000 for fiscal year
2019 and each of the 5 succeeding fiscal years.''.
TITLE III--INSTITUTIONAL AID
SEC. 301. STRENGTHENING INSTITUTIONS.
Part A of title III (20 U.S.C. 1057 et seq.) is amended--
(1) in the part heading for part A, by inserting ``Minority-
serving'' after ``Strengthening'';
(2) in section 311--
(A) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively;
(B) in subsection (b) (as so redesignated)--
(i) by striking paragraph (6) and inserting
the following:
``(6) Tutoring, counseling, advising, and student service
programs designed to improve academic success, including
innovative and customized instructional courses (which may
include remedial education and English language instruction)
designed to help retain students and move the students rapidly
into core courses and through program completion.'';
(ii) in paragraph (8), by striking
``acquisition of equipment for use in
strengthening funds management'' and inserting
``acquisition of technology, services, and
equipment for use in strengthening funds and
administrative management'';
(iii) in paragraph (12), by striking
``Creating'' and all that follows through
``technologies,'' and inserting ``Innovative
learning models and creating or improving
facilities for Internet or other innovative
technologies,'';
(iv) by redesignating paragraph (13) as
paragraph (18); and
(v) by inserting after paragraph (12) the
following:
``(13) Establishing community outreach programs that will
encourage elementary school and secondary school students to
develop the academic skills and the interest to pursue
postsecondary education.
``(14) The development, coordination, implementation, or
improvement of career and technical education programs as
defined in section 135 of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2355).
``(15) Alignment and integration of career and technical
education programs with programs of study leading to a
bachelor's degree, graduate degree, or professional degree.
``(16) Developing or expanding access to dual or concurrent
enrollment programs and early college high school programs.
``(17) Pay for success initiatives that improve time to
completion and increase graduation rates.''; and
(C) in subsection (c) (as so redesignated), by adding
at the end the following:
``(4) Scholarship.--An institution that uses grant funds
provided under this part to establish or increase an endowment
fund may use the income from such endowment fund to provide
scholarships to students for the purposes of attending such
institution, subject to the limitation in section
331(c)(3)(B)(i).'';
(3) in section 312--
(A) in subsection (a), by striking ``transfers which
the institution'' and inserting ``transfers that the
institution'';
(B) in subsection (b)(1)--
(i) by redesignating subparagraphs (E) and
(F) as subparagraphs (F) and (E), respectively
(and by reordering such subparagraphs
accordingly);
(ii) in subparagraph (E) (as so
redesignated), by inserting ``(as defined in
section 103(20)(A))'' after ``State''; and
(iii) in subparagraph (F) (as so
redesignated), by striking ``and'' at the end;
and
(C) in subsection (b)--
(i) by striking the period at the end of
paragraph (2) and inserting ``; and''; and
(ii) by inserting after paragraph (2) the
following:
``(3) except as provided in section 392(b), an institution
that has a completion rate of at least 25 percent that is
calculated by counting a student as completed if that student--
``(A) graduates within 150 percent of the normal time
for completion; or
``(B) enrolled into another program at an institution
for which the previous program provided substantial
preparation within 150 percent of the normal time for
completion.'';
(4) in section 313--
(A) in subsection (a)--
(i) by striking ``for 5 years'' and inserting
``for a period of 5 years''; and
(ii) by adding at the end the following:
``Any funds awarded under this section that are
not expended or used for the purposes for which
the funds were paid within 10 years following
the date on which the grant was awarded, shall
be repaid to the Treasury.''; and
(B) by striking subsection (d);
(5) in section 316--
(A) in subsection (c)--
(i) in paragraph (2)--
(I) by striking subparagraph (A) and
inserting the following:
``(A) the activities described in paragraphs (1)
through (12) and (14) through (17) of section
311(b);'';
(II) by striking subparagraphs (E)
through (J);
(III) by redesignating subparagraphs
(K) and (L) as subparagraphs (E) and
(F), respectively;
(IV) by striking subparagraph (M);
and
(V) by redesignating subparagraph (N)
as subparagraph (G); and
(VI) in subparagraph (G) (as so
redesignated), by striking ``(M)'' and
inserting ``(F)''; and
(ii) by striking paragraph (3) and inserting
the following:
``(3) Endowment fund.--A Tribal College or University seeking
to establish or increase an endowment fund shall abide by the
requirements in section 311(c).''; and
(B) in subsection (d)--
(i) by striking paragraph (2) and inserting
the following:
``(2) Application.--A Tribal College or University desiring
to receive assistance under this section shall submit an
application to the Secretary pursuant to section 391.''; and
(ii) in paragraph (4)--
(I) in subparagraph (A), by striking
``part A of''; and
(II) in subparagraph (B), by striking
``313(d)'' and inserting ``312(b)(3)'';
(6) in section 317--
(A) in subsection (c)--
(i) by striking paragraph (2) and inserting
the following:
``(2) Examples of authorized activities.--Such programs may
include--
``(A) the activities described in paragraphs (1)
through (17) of section 311(b); and
``(B) other activities proposed in the application
submitted pursuant to subsection (d) that--
``(i) contribute to carrying out the purpose
of this section; and
``(ii) are approved by the Secretary as part
of the review and approval of an application
submitted under subsection (d).''; and
(ii) by adding at the end the following:
``(3) Endowment fund.--An Alaska Native-serving institution
and Native Hawaiian-serving institution seeking to establish or
increase an endowment fund shall abide by the requirements in
section 311(c).''; and
(B) in subsection (d)--
(i) by striking paragraph (1) and
redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively;
(ii) in paragraph (1) (as so redesignated)--
(I) in the first sentence, by
inserting ``pursuant to section 391''
after ``to the Secretary''; and
(II) by striking the remaining
sentences; and
(iii) in paragraph (2) (as so redesignated)--
(I) in subparagraph (A), by striking
``this part or part B.'' and inserting
``this part, part B, or title V.''; and
(II) by striking subparagraph (B) and
redesignating subparagraph (C) as
subparagraph (B);
(7) in section 318--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (E), by striking
``and'' at the end;
(II) in subparagraph (F)(ii), by
striking ``part A of'';
(III) in subparagraph (F)(iii), by
striking the period at the end and
inserting ``; and''; and
(IV) by adding at the end the
following;
``(G) is an eligible institution under section
312(b).''; and
(ii) by striking paragraph (7);
(B) in subsection (d)--
(i) in paragraph (2)--
(I) in subparagraph (A), by striking
``through (12) of section 311(c)'' and
inserting ``through (17) of section
311(b)'';
(II) by striking subparagraph (D);
and
(III) by redesignating subparagraph
(E) as subparagraph (D); and
(ii) by striking paragraph (3) and inserting
the following:
``(3) Endowment fund.--A Predominantly Black Institution
seeking to establish or increase an endowment fund shall abide
by the requirements in section 311(c).'';
(C) in subsection (f), by striking all after
``Secretary'' the first place such term appears and
inserting ``pursuant to section 391.'';
(D) by striking subsections (g) and (h);
(E) by redesignating subsection (i) as subsection
(g); and
(F) in subsection (g) (as so redesignated), by
striking ``part A of'';
(8) in section 319--
(A) in subsection (c)--
(i) by striking paragraph (2) and inserting
the following:
``(2) Examples of authorized activities.--Such programs may
include--
``(A) the activities described in paragraphs (1)
through (17) of section 311(b); and
``(B) other activities proposed in the application
submitted pursuant to subsection (d) that--
``(i) contribute to carrying out the purpose
of this section; and
``(ii) are approved by the Secretary as part
of the review and approval of an application
submitted under subsection (d).''; and
(ii) by adding at the end the following:
``(3) Endowment fund.--A Native American-serving, nontribal
institution seeking to establish or increase an endowment fund
shall abide by the requirements in section 311(c).''; and
(B) in subsection (d)--
(i) by striking paragraph (1) and inserting
the following:
``(1) Application.--A Native American-serving, nontribal
institution desiring to receive assistance under this section
shall submit an application to the Secretary pursuant to
section 391.'';
(ii) by striking paragraph (2) and
redesignating paragraph (3) as paragraph (2);
and
(iii) in paragraph (2) (as so redesignated)--
(I) in subparagraph (A), by striking
``part A of'';
(II) by striking subparagraph (B);
and
(III) by redesignating subparagraphs
(C) and (D) as subparagraphs (B) and
(C), respectively; and
(9) in section 320--
(A) in subsection (c)--
(i) by striking paragraph (2) and inserting
the following:
``(2) Examples of authorized activities.--Such programs may
include--
``(A) the activities described in paragraphs (1)
through (17) of section 311(b);
``(B) academic instruction in disciplines in which
Asian Americans and Native American Pacific Islanders
are underrepresented;
``(C) conducting research and data collection for
Asian American and Native American Pacific Islander
populations and subpopulations;
``(D) establishing partnerships with community-based
organizations serving Asian Americans and Native
American Pacific Islanders; and
``(E) other activities proposed in the application
submitted pursuant to subsection (d) that--
``(i) contribute to carrying out the purpose
of this section; and
``(ii) are approved by the Secretary as part
of the review and approval of an application
submitted under subsection (d).''; and
(ii) by adding at the end the following:
``(3) Endowment fund.--An Asian American and Native American
Pacific Islander-serving institution seeking to establish or
increase an endowment fund shall abide by the requirements in
section 311(c).''; and
(B) in subsection (d)--
(i) by striking paragraph (1) and inserting
the following:
``(1) Application.--Each Asian American and Native American
Pacific Islander-serving institution desiring to receive
assistance under this section shall submit an application to
the Secretary pursuant to section 391.'';
(ii) by striking paragraph (2) and
redesignating paragraph (3) as paragraph (2);
and
(iii) in paragraph (2) (as so redesignated),
by striking subparagraph (B) and redesignating
subparagraph (C) as subparagraph (B).
SEC. 302. STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.
Part B of title III (20 U.S.C. 1060 et seq.) is amended--
(1) in section 323--
(A) by striking subsection (a) and inserting the
following :
``(a) Authorized Activities.--From amounts available under section
399(a)(2) for any fiscal year, the Secretary shall make grants (under
section 324) to institutions which have applications approved by the
Secretary (under section 325) for any of the following uses:
``(1) The activities described in paragraphs (1) through (17)
of section 311(b).
``(2) Academic instruction in disciplines in which Black
Americans are underrepresented.
``(3) Initiatives to improve the educational outcomes of
African American males.
``(4) Establishing or enhancing a program of teacher
education designed to qualify students to teach in a public
elementary or secondary school in the State that shall include,
as part of such program, preparation for teacher certification.
``(5) Acquisition of real property in connection with the
construction, renovation, or addition to or improvement of
campus facilities.
``(6) Services necessary for the implementation of projects
or activities that are described in the grant application and
that are approved, in advance, by the Secretary, except that
not more than two percent of the grant amount may be used for
this purpose.
``(7) Other activities proposed in the application submitted
pursuant to section 325 that--
``(A) contribute to carrying out the purposes of this
part; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.''; and
(B) by striking subsection (b) and inserting the
following:
``(b) Endowment Fund.--An institution seeking to establish or
increase an endowment shall abide by the requirements in section
311(c).'';
(2) in section 325(a), by striking ``(C), (D), and (E)'' and
inserting ``(C) through (F)'';
(3) in section 326--
(A) by striking subsection (b) and inserting the
following:
``(b) Duration.--The Secretary may award a grant to an eligible
institution under this part for a period of 5 years. Any funds awarded
under this section that are not expended or used for the purposes for
which the funds were paid within 10 years following the date on which
the grant was awarded, shall be repaid to the Treasury.'';
(B) by striking subsection (c) and inserting the
following:
``(c) Authorized Activities.--A grant under this section may be used
for--
``(1) the activities described in paragraphs (1) through
(12), (14) through (15), and (17) of section 311(b);
``(2) scholarships, fellowships, and other financial
assistance for needy graduate and professional students to
permit the enrollment of the students in and completion of the
doctoral degree in medicine, dentistry, pharmacy, veterinary
medicine, law, and the doctorate degree in the physical or
natural sciences, engineering, mathematics, or other scientific
disciplines in which African Americans are underrepresented;
``(3) acquisition of real property that is adjacent to the
campus in connection with the construction, renovation, or
addition to or improvement of campus facilities;
``(4) services necessary for the implementation of projects
or activities that are described in the grant application and
that are approved, in advance, by the Secretary, except that
not more than two percent of the grant amount may be used for
this purpose; and
``(5) other activities proposed in the application submitted
under subsection (d) that--
``(A) contribute to carrying out the purposes of this
part; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.'';
(C) in subsection (e)(1)--
(i) in subparagraph (W), by striking ``and''
at the end;
(ii) in subparagraph (X), by striking the
period at the end and inserting ``; and'';
(iii) by adding at the end the following:
``(Y) University of the Virgin Islands School of
Medicine.'';
(iv) in each of paragraphs (2) and (3) of
subsection (f), by striking ``(X)'' and
inserting ``(Y)''; and
(v) in subsection (g), by striking ``2008''
each place such term appears and inserting
``2018''; and
(4) in section 327--
(A) by striking the designation and heading for
subsection (a); and
(B) by striking subsection (b).
SEC. 303. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING.
Part D of title III (20 U.S.C. 1066 et seq.) is amended--
(1) in section 343--
(A) in subsection (b)--
(i) in paragraph (1), by striking ``an escrow
account'' and inserting ``a bond insurance
fund''; and
(ii) in paragraph (8)--
(I) in the matter preceding
subparagraph (A), by striking
``establish an escrow account'' and
inserting ``subject to subsection (f),
establish a bond insurance fund''; and
(II) in subparagraph (A), by striking
``the escrow account'' and inserting
``the bond insurance fund''; and
(iii) in paragraph (9)--
(I) by striking ``the escrow
account'' and inserting ``the bond
insurance fund or the escrow account
described in subsection (f)(1)(B)'' and
(II) by striking ``such escrow
account'' and inserting ``such bond
insurance fund or escrow account'';
(iv) in subsection (c)--
(I) in paragraph (2), by striking
``the escrow account described in
subsection (b)(8)'' and inserting ``the
bond insurance fund described in
subsection (b)(8) and the escrow
account described in subsection
(f)(1)(B)'';
(II) in paragraph (4), by striking
``and the escrow account'' and
inserting ``, the bond insurance fund,
and the escrow account described in
subsection (f)(1)(B)''; and
(III) in paragraph (5)(B), by
striking ``and the escrow account'' and
inserting ``, the bond insurance fund,
and the escrow account described in
subsection (f)(1)(B)''; and
(v) by adding at the end the following:
``(f) Applicability of Bond Insurance Fund and Escrow Account and
Special Rules.--
``(1) Applicability of bond insurance fund and escrow
account.--Except as provided in paragraph (2)--
``(A) the bond insurance fund established under
subsection (b)(8) on the date of enactment of the
PROSPER Act shall be made available with respect to
loans made under this part on or after such date; and
``(B) the escrow account established under subsection
(b)(8) before the date of enactment of the PROSPER Act
and as in effect on the day before such date of
enactment shall be made available with respect to loans
made under this part before the date of enactment of
the PROSPER Act.
``(2) Special rules.--Notwithstanding paragraph (1)--
``(A) in a case in which the amount in the bond
insurance fund described in paragraph (1)(A) is
insufficient to make payments of principal and interest
on bonds under subsection (b)(8)(B)(i) in the event of
delinquency in loan repayment on loans made under this
part on or after the date of enactment of the PROSPER
Act, amounts in the escrow fund described in paragraph
(1)(B) shall be made available to the Secretary to make
such payments;
``(B) in a case in which the amount in the escrow
account described in paragraph (1)(B) is insufficient
to make payments of principal and interest on bonds
under subsection (b)(8)(B)(i) in the event of
delinquency in loan repayment on loans made under this
part before the date of enactment of the PROSPER Act,
amounts in the bond insurance fund described in
paragraph (1)(A) shall be made available to the
Secretary to make such payments; and
``(C) in a case in which an institution is required
to return an amount equal to any remaining portion of
such institution's 5 percent deposit of loan proceeds
under subsection (b)(8)(B)(ii), the institution shall
return to the escrow account and the bond insurance
fund an amount that is proportionate to the amount that
was withdrawn from the escrow account and the bond
insurance fund, respectively, by such institution.'';
(2) in section 345, by striking paragraph (9) and inserting
the following:
``(9) may, directly or by grant or contract, provide
financial counseling and technical assistance to eligible
institutions to prepare the institutions to qualify, apply for,
and maintain a capital improvement loan, including a loan under
this part; and''; and
(3) in section 347(c), by striking paragraph (2) and
inserting the following:
``(2) Report.--On an annual basis, the Advisory Board shall
prepare and submit to the authorizing committees a report on
the status of the historically Black colleges and universities
described in paragraph (1)(A) and an overview of all loans in
the capital financing program, including the most recent loans
awarded in the fiscal year in which the report is submitted.
The report shall include administrative and legislative
recommendations, as needed, for addressing the issues related
to construction financing facing historically Black colleges
and universities.''.
SEC. 304. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM.
Part E of title III (20 U.S.C. 1067 et seq.) is amended--
(1) in section 353(a)--
(A) in paragraph (1), by striking ``365(6)'' and
inserting ``359(6)'';
(B) in paragraph (2), by striking ``365(7)'' and
inserting ``359(7)'';
(C) in paragraph (3), by striking ``365(8)'' and
inserting ``359(8)''; and
(D) in paragraph (4), by striking ``365(9)'' and
inserting ``359(9)'';
(2) by striking subpart 2;
(3) by redesignating subpart 3 as subpart 2 and redesignating
sections 361 through 365 as sections 355 through 359,
respectively;
(4) in section 355 (as so redesignated), by striking
paragraph (5);
(5) in section 356(a) (as so redesignated), by striking
``determined under section 361)'' and inserting ``determined
under section 355)''; and
(6) in section 359(2) (as so redesignated)--
(A) by inserting ``American'' after ``Black''; and
(B) by striking ``Hispanic (including'' and inserting
``Hispanic American (including''.
SEC. 305. STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
AND OTHER MINORITY-SERVING INSTITUTIONS.
Section 371 (20 U.S.C. 1067q) is amended--
(1) in subsection (b)(2)(D)(iii), by striking ``section
311(c)'' and inserting ``section 311(b)''; and
(2) in subsection (c)(9)(F)(ii), by striking ``part A of''.
SEC. 306. GENERAL PROVISIONS.
Part G of title III (20 U.S.C. 1068 et seq.) is amended--
(1) in section 391(b)--
(A) in paragraph (1), by striking ``institutional
management'' and all that follows through the semicolon
at the end and inserting ``institutional management,
and use the grant to provide for, and lead to,
institutional self-sustainability and growth (including
measurable objectives for the institution and the
Secretary to use in monitoring the effectiveness of
activities under this title);'';
(B) in paragraph (7)--
(i) by striking subparagraph (C) and
redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(ii) in subparagraph (D) (as so
redesignated), strike ``and'' at the end;
(C) by striking paragraph (8) and inserting the
following:
``(8) set forth a 5-year plan for improving the assistance
provided by the institution; and''; and
(D) by adding at the end the following:
``(9) submit such enrollment data as may be necessary to
demonstrate that the institution is a minority-serving
institution.'';
(2) in section 392--
(A) in subsection (b)--
(i) in the subsection heading, after
``Expenditures'' insert ``; Completion Rates'';
(ii) in paragraph (1), insert ``or
312(b)(3)'' after ``312(b)(1)(B)''; and
(iii) in paragraph (2)--
(I) in the matter preceding
subparagraph (A)--
(aa) by inserting ``or
312(b)(3)'' after
``312(b)(1)(B)''; and
(bb) by inserting
``American'' after
``Hispanic''; and
(II) in subparagraph (A), by
inserting ``or section 312(b)(3)''
after ``312(b)(1)''; and
(B) by striking subsection (c) and inserting the
following:
``(c) Waiver Authority With Respect to Institutions Located in an
Area Affected by a Major Disaster.--
``(1) Waiver authority.--Notwithstanding any other provision
of law, unless enacted with specific reference to this section,
in the case of a major disaster, the Secretary may waive for
affected institutions--
``(A) the eligibility data requirements set forth in
section 391(d) and section 521(e);
``(B) the allotment requirements under section 324;
and
``(C) the use of the funding formula developed
pursuant to section 326(f)(3);
``(2) Definitions.--In this subsection:
``(A) Affected institution.--The term `affected
institution' means an institution of higher education
that--
``(i) is--
``(I) a part A institution (which
term shall have the meaning given the
term `eligible institution' under
section 312(b) or section 502(a)(6));
or
``(II) a part B institution, as such
term is defined in section 322(2), or
as identified in section 326(e);
``(ii) is located in an area affected by a
major disaster; and
``(iii) is able to demonstrate that, as a
result of the impact of a major disaster, the
institution--
``(I) incurred physical damage;
``(II) has pursued collateral source
compensation from insurance, the
Federal Emergency Management Agency,
and the Small Business Administration,
as appropriate; and
``(III) was not able to fully reopen
in existing facilities or to fully
reopen to the pre-disaster enrollment
levels.
``(B) Major disaster.--The term `major disaster' has
the meaning given such term in section 102(2) of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122(2)).''; and
(3) in section 399, by striking subsection (a) and inserting
the following:
``(a) Authorizations.--
``(1) Part a.--(A) There are authorized to be appropriated to
carry out section 316, $27,599,000 for each of fiscal years
2019 through 2024.
``(B) There are authorized to be appropriated to carry out
section 317, $13,802,000 for each of fiscal years 2019 through
2024.
``(C) There are authorized to be appropriated to carry out
section 318, $9,942,000 for each of fiscal years 2019 through
2024.
``(D) There are authorized to be appropriated to carry out
section 319, $3,348,000 for each of fiscal years 2019 through
2024.
``(E) There are authorized to be appropriated to carry out
section 320, $3,348,000 for each of fiscal years 2019 through
2024.
``(2) Part b.--(A) There are authorized to be appropriated to
carry out part B (other than section 326), $244,694,000 for
each of fiscal years 2019 through 2024.
``(B) There are authorized to be appropriated to carry out
section 326, $63,281,000 for each of fiscal years 2019 through
2024.
``(3) Part d.--There are authorized to be appropriated to
carry out part D, $20,484,000 for each of fiscal years 2019
through 2024. Of the amount authorized, 1.63 percent shall be
reserved for administrative expenses.
``(4) Part e.--There are authorized to be appropriated to
carry out subpart 1 of part E, $9,648,000 for each of fiscal
years 2019 through 2024.''.
TITLE IV--STUDENT ASSISTANCE
PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER
EDUCATION
SEC. 401. FEDERAL PELL GRANTS.
(a) Reauthorization.--Section 401(a)(1) (20 U.S.C. 1070a(a)(1)) is
amended--
(1) by striking ``fiscal year 2017'' and inserting ``fiscal
year 2024''; and
(2) by inserting ``an eligible program at'' after
``attendance at''.
(b) Federal Pell Grant Bonus.--
(1) Amendments.--Section 401(b) (20 U.S.C. 1070a(b)) is
amended--
(A) in paragraph (7)(A)(iii)--
(i) by inserting ``and paragraph (9)'' after
``this paragraph''; and
(ii) by inserting before the semicolon at the
end the following: ``and to provide the
additional amount required by paragraph (9)'';
and
(B) by adding at the end the following:
``(9) Federal pell grant bonus.--
``(A) In general.--Notwithstanding any other
provision of this subsection and from the amounts made
available pursuant to paragraph (7)(A)(iii) for the
purposes of this paragraph, an eligible student who is
receiving a Federal Pell Grant for an award year shall
receive an amount in addition to such Federal Pell
Grant for each payment period of such award year for
which the student--
``(i) is receiving such Federal Pell Grant as
long as the amount of such Federal Pell Grant
does not exceed the maximum amount of a Federal
Pell Grant award determined under paragraph
(2)(A) for such award year; and
``(ii) is carrying a work load that--
``(I) is greater than the normal
full-time work load for the course of
study the student is pursuing, as
determined by the institution of higher
education; and
``(II) will lead to the completion of
not less than 30 credit hours (or the
equivalent coursework) upon the
completion of the final payment period
for which the student is receiving the
Federal Pell Grant described in clause
(i).
``(B) Amount of bonus.--The amount provided to an
eligible student under subparagraph (A) for an award
year may not exceed $300, which shall be equally
divided among each payment period of such award year
described in clauses (i) and (ii) of subparagraph
(A).''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect with respect to award year 2018-2019 and each
succeeding award year.
(c) Period of Eligibility for Grants.--Section 401(c) (20 U.S.C.
1070a(c)) is amended by adding at the end the following:
``(6)(A) The Secretary shall issue to each student receiving a
Federal Pell Grant, an annual status report which shall--
``(i) inform the student of the remaining period during which
the student may receive Federal Pell Grants in accordance with
paragraph (5), and provide access to a calculator to assist the
student in making such determination;
``(ii) include an estimate of the Federal Pell Grant amounts
which may be awarded for such remaining period based on the
student's award amount determined under subsection (b)(2)(A)
for the most recent award year;
``(iii) explain how the estimate was calculated and any
assumptions underlying the estimate;
``(iv) explain that the estimate may be affected if there is
a change--
``(I) in the student's financial circumstances; or
``(II) the availability of Federal funding; and
``(v) describe how the remaining period during which the
student may receive Federal Pell Grants will be affected by
whether the student is enrolled as a full-time student.
``(B) Nothing in this paragraph shall be construed to prohibit an
institution from offering additional counseling to a student with
respect to Federal Pell Grants, but such counseling shall not delay or
impede disbursement of a Federal Pell Grant award to the student.''.
(d) Distribution of Grants to Students.--Section 401(e) (20 U.S.C.
1070a(e)) is amended by striking the first sentence and inserting
``Payments under this section shall be made in the same manner as
disbursements under section 465(a).''.
(e) Institutional Ineligibility Based on Default Rates.--Section
401(j) of such Act (20 U.S.C. 1070a(j)) is amended by adding at the end
the following:
``(3) Sunset.--The provisions of this subsection shall not
apply after the transition period described in section
481B(e)(3).''.
(f) Prevention of Fraud.--Section 401 (20 U.S.C. 1070a) is amended by
adding at the end the following:
``(k) Prevention of Fraud.--
``(1) Prohibition of awards.--
``(A) In general.--No Federal Pell Grant shall be
awarded under this subpart to any student who--
``(i) received a Federal Pell Grant for 3
award years; and
``(ii) for each such award year, was enrolled
in an institution of higher education and did
not earn any academic credit for which the
Federal Pell Grant was provided.
``(B) Waiver.--The student financial aid
administrator at an institution of higher education may
waive the requirement of subparagraph (A) for a
student, if the financial aid administrator--
``(i) determines that the student was unable
to earn any academic credit as described in
subparagraph (A)(ii) due to circumstances
beyond the student's control; and
``(ii) makes and documents such a
determination on an individual student basis.
``(C) Definition of circumstances beyond a student's
control.--For purposes of this paragraph, the term
`circumstances beyond the student's control', when used
with respect to an individual student--
``(i) may include the student withdrawing
from an institution of higher education due to
illness; and
``(ii) shall not include the student
withdrawing from an institution of higher
education to avoid a particular grade.
``(2) Secretarial discretion to stop awards.--With respect to
a student who receives a disbursement of a Federal Pell Grant
for a payment period of an award year and whom the Secretary
determines has had an unusual enrollment history, the Secretary
may prevent such student from receiving any additional
disbursements of such Federal Pell Grant for such award year
until the student financial aid administrator at the student's
institution of higher education determines that the student's
enrollment history should not be considered an unusual
enrollment history.''.
(g) Report on Costs of Federal Pell Grant Program.--Section 401 (20
U.S.C. 1070a), as amended by subsections (a) through (f), is further
amended by adding at the end the following:
``(l) Report on Costs of Federal Pell Grant Program.--Not later than
October 31 of each year, the Secretary shall prepare and submit a
report to the authorizing committees that includes the following
information with respect to spending for the Federal Pell Grant program
for the preceding fiscal year:
``(1) The total obligations and expenditures for the program
for such fiscal year.
``(2) A comparison of the total obligations and expenditures
for the program for such fiscal year--
``(A) to the most recently available Congressional
Budget Office baseline for the program; and
``(B) in the case in which such fiscal year is fiscal
year 2019, 2020, 2021, 2022, 2023, or 2024, to the
Congressional Budget Office cost estimate for the
program included in the report of the Committee on
Education and the Workforce of the House of
Representatives accompanying the PROSPER Act, as
approved by the Committee.
``(3) The total obligations and expenditures for the maximum
Federal Pell Grant for which a student is eligible, as
specified in the last enacted appropriation Act applicable to
such fiscal year.
``(4) A comparison of the total obligations and expenditures
for the maximum Federal Pell Grant for which a student is
eligible, as specified in the last enacted appropriation Act
applicable to such fiscal year--
``(A) to the most recently available Congressional
Budget Office baseline for such maximum Federal Pell
Grant; and
``(B) in the case in which such fiscal year is fiscal
year 2019, 2020, 2021, 2022, 2023, or 2024, to the
Congressional Budget Office cost estimate for such
maximum Federal Pell Grant included in the report of
the Committee on Education and the Workforce of the
House of Representatives accompanying the PROSPER Act,
as approved by the Committee.
``(5) The total mandatory obligations and expenditures for
the amount of the increase in such maximum Federal Pell Grant
required by subsection (b)(7)(B) for such fiscal year.
``(6) A comparison of the total mandatory obligations and
expenditures for the amount of the increase in such maximum
Federal Pell Grant required by subsection (b)(7)(B)--
``(A) to the most recently available Congressional
Budget Office baseline for the increase; and
``(B) in the case in which such fiscal year is fiscal
year 2019, 2020, 2021, 2022, 2023, or 2024, to the
Congressional Budget Office cost estimate for the
increase included in the report of the Committee on
Education and the Workforce of the House of
Representatives accompanying the PROSPER Act, as
approved by the Committee.
``(7) The total mandatory obligations and expenditures for
the Federal Pell Grant Bonus required by subsection (b)(9) for
such fiscal year.
``(8) A comparison of the total mandatory obligations and
expenditures for the Federal Pell Grant Bonus required by
subsection (b)(9) for such fiscal year--
``(A) to the most recently available Congressional
Budget Office baseline for such bonus; and
``(B) in the case in which such fiscal year is fiscal
year 2019, 2020, 2021, 2022, 2023, or 2024, to the
Congressional Budget Office cost estimate for such
bonus included in the report of the Committee on
Education and the Workforce of the House of
Representatives accompanying the PROSPER Act, as
approved by the Committee.''.
(h) Study on Federal Pell Grant Bonus.--Section 401 (20 U.S.C.
1070a), as amended by subsections (a) through (g), is further amended
by adding at the end the following:
``(m) Report and Study on Federal Pell Grant Bonus.--
``(1) Report.--
``(A) In general.--The Secretary shall report
annually, in accordance with subparagraph (C), on the
Federal Pell Grant Bonus required by subsection (b)(9).
``(B) Elements.--Each report required under
subparagraph (A) shall include an assessment of the
following:
``(i) The number of students who received the
Federal Pell Grant Bonus under subsection
(b)(9).
``(ii) Of the students counted under clause
(i)--
``(I) the number of such students who
obtained a degree or certificate within
the normal time to completion for the
program for which the Federal Pell
Grant Bonus was awarded; and
``(II) the number of such students
who obtained a degree or certificate--
``(aa) within 4 years of
beginning the program of study
for which the Federal Pell
Grant Bonus was awarded;
``(bb) within 5 years of
beginning such program of
study; and
``(cc) within 6 years of
beginning such program of
study.
``(C) Submission of reports.--
``(i) Initial report.--Not later than one
year after the first cohort of students
described in subparagraph (B)(i) is expected to
complete their program of study, the Secretary
shall submit to the authorizing committees an
initial report under subparagraph (A).
``(ii) Annual updates.--On an annual basis,
the Secretary shall update the report under
subparagraph (A) and submit the updated report
to the authorizing committees.
``(2) Study.--Not later than 18 months after the date of the
submission of the initial report under paragraph (1)(C)(i), the
Comptroller General of the United States shall complete a study
on the impact of the Federal Pell Grant Bonus required under
subsection (b)(9). The study shall include an assessment of the
following:
``(A) Of the students who received the Federal Pell
Grant Bonus, the number of such students who had a
lower volume of student loans upon completion of their
program of study compared to students who received a
Federal Pell Grant but did not receive the Federal Pell
Grant Bonus.
``(B) Whether students who received the Federal Pell
Grant Bonus took an increased courseload as a result of
the availability of the Federal Pell Grant Bonus.
``(C) The completion rate of students who received
the Federal Pell Grant Bonus compared to the completion
rate of students who did not receive the bonus.''.
SEC. 402. FEDERAL TRIO PROGRAMS.
(a) Program Authority; Authorization of Appropriations.--Section 402A
(20 U.S.C. 1070a-11) is amended--
(1) in subsection (c)--
(A) by amending subparagraph (A) of paragraph (2) to
read as follows:
``(A) Accountability for outcomes.--In making grants
under this chapter, the Secretary shall comply with the
following requirements:
``(i) The Secretary shall consider each
applicant's prior success in achieving high
quality service delivery, as determined under
subsection (f), under the particular program
for which funds are sought. The level of
consideration given the factor of prior success
in achieving high quality service delivery
shall not vary from the level of consideration
given such factor during fiscal years 1994
through 1997, except that grants made under
section 402H shall not be given such
consideration.
``(ii) The Secretary shall not give points
for prior success in achieving high quality
service delivery to any current grantee that,
during the then most recent period for which
funds were provided, did not meet or exceed two
or more objectives established in the eligible
entity's application based on the performance
measures described in subsection (f).
``(iii) From the amounts awarded under
subsection (g) for a program under this chapter
(other than a program under sections 402G and
402H) for any fiscal year in which the
Secretary conducts a competition for the award
of grants or contracts under such programs, the
Secretary shall reserve not less than 10
percent of such available amount to award
grants or contracts to applicants who have not
previously received a grant or contract under
this chapter. If the Secretary determines that
there are an insufficient number of qualified
applicants to use the full amount reserved
under the preceding sentence, the Secretary
shall use the remainder of such amount to award
grants or contracts to applicants who have
previously received a grant or contract under
this chapter.'';
(B) in paragraph (3)--
(i) in subparagraph (A)--
(I) by striking ``as provided in
subparagraph (B)'' and inserting ``as
provided in subparagraph (C)'';
(II) by striking ``experience'' and
inserting ``success in achieving high
quality service delivery'';
(ii) by redesignating subparagraph (B) as
subparagraph (C); and
(iii) by inserting after subparagraph (A) the
following new subparagraph:
``(B) To ensure that congressional priorities in conducting
competitions for grants and contracts under this chapter are
implemented, the Secretary shall not impose additional criteria
for the prioritization of applications for such grants or
contracts (including additional competitive, absolute, or other
criteria) beyond the criteria described in this chapter.'';
(C) in paragraph (6)--
(i) by striking the period at the end of the
second sentence and inserting ``, as long as
the program is serving a different population
or a different campus.'';
(ii) by striking ``the programs authorized
by'' and inserting ``sections 402B, 402C, 402D,
and 402F of'';
(iii) by striking ``The Secretary shall
encourage'' and inserting the following:
``(A) The Secretary shall encourage'';
(iv) by striking ``The Secretary shall
permit'' and inserting the following:
``(B) The Secretary shall permit'';
(D) in paragraph (7), by striking ``8 months'' each
place it appears and inserting ``90 days'';
(E) in paragraph (8)--
(i) in subparagraph (A)--
(I) in the matter preceding clause
(i), by striking ``Not later than 180
days after the date of enactment of the
Higher Education Opportunity Act,'' and
inserting ``Not later than 90 days
before the commencement of each
competition for a grant under this
chapter,'';
(II) in clause (iii), by striking
``prior experience points for high
quality service delivery are awarded''
and inserting ``application scores are
adjusted for prior success in achieving
high quality service delivery''; and
(III) in clause (v), by striking
``prior experience points for'' and
inserting ``the adjustment in scores
for prior success in achieving'';
(ii) by striking subparagraph (B) and
redesignating subparagraph (C) as subparagraph
(B); and
(iii) in subparagraph (B), as so
redesignated--
(I) in clause (iii)--
(aa) in the matter preceding
subclause (I), by striking
``prior experience points for''
and inserting ``points for
prior success in achieving'';
and
(bb) in subclause (II), by
striking ``prior experience
points'' and inserting ``points
for prior success in achieving
high quality service
delivery''; and
(II) in clause (vi), by inserting
before the period at the end the
following: ``from funds reserved under
subsection (g)''; and
(F) by adding at the end the following:
``(9) Matching requirement.--
``(A) In general.--The Secretary shall not approve an
application submitted under section 402B, 402C, 402D,
402E, or 402F unless such application--
``(i) provides that the eligible entity will
provide, from State, local, institutional, or
private funds, not less than 20 percent of the
cost of the program, which matching funds may
be provided in cash or in kind and may be
accrued over the full duration of the grant
award period, except that the eligible entity
shall make substantial progress towards meeting
the matching requirement in each year of the
grant award period;
``(ii) specifies the methods by which
matching funds will be paid; and
``(iii) includes provisions designed to
ensure that funds provided under this chapter
shall supplement and not supplant funds
expended for existing programs.
``(B) Special rule.--Notwithstanding the matching
requirement described in subparagraph (A), the
Secretary may by regulation modify the percentage
requirement described in subparagraph (A). The
Secretary may approve an eligible entity's request for
a reduced match percentage--
``(i) at the time of application if the
eligible entity demonstrates significant
economic hardship that precludes the eligible
entity from meeting the matching requirement;
or
``(ii) in response to a petition by an
eligible entity subsequent to a grant award
under section 402B, 402C, 402D, 402E, or 402F
if the eligible entity demonstrates that the
matching funds described in its application are
no longer available and the eligible entity has
exhausted all revenues for replacing such
matching funds.''.
(2) in subsection (d)(3), by adding at the end the following
new sentence: ``In addition, the Secretary shall host at least
one virtual, interactive education session using
telecommunications technology to ensure that any interested
applicants have access to technical assistance.'';
(3) in subsection (e)--
(A) in paragraph (1)--
(i) in subparagraph (C), by striking ``or''
at the end;
(ii) in subparagraph (D), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following new
subparagraph:
``(E) documentation that the student has been determined to
be eligible for a Federal Pell Grant under section 401.''; and
(B) in paragraph (2)--
(i) in subparagraph (C), by striking ``or''
at the end;
(ii) in subparagraph (D), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following new
subparagraph:
``(E) documentation that the student has been determined to
be eligible for a Federal Pell Grant under section 401.'';
(4) in subsection (f)--
(A) in the heading of paragraph (1), by striking
``prior experience'' and inserting ``accountability for
outcomes'';
(B) in paragraph (1) by striking ``experience of''
and inserting ``success in achieving'';
(C) in paragraph (3)--
(i) in subparagraph (A)--
(I) in clause (iv) by striking
``rigorous secondary school program of
study that will make such students
eligible for programs such as the
Academic Competitiveness Grants
Program'' and inserting ``secondary
school program of study that will
prepare such students to enter
postsecondary education without the
need for remedial education'';
(II) by redesignating clauses (v) and
(vi) as clauses (vi) and (vii),
respectively; and
(III) by inserting after clause (iv)
the following new clause:
``(v) the completion of financial aid
applications, including the Free Application
for Federal Student Aid described in section
483(a) and college admission applications;'';
(ii) in subparagraph (B)--
(I) by redesignating clauses (i),
(ii), (iii), (iv), (v), (vi), and (vii)
as subclauses (I), (II), (III), (IV),
(VI), (VIII), and (IX), respectively;
(II) by inserting after subclause
(IV), as so redesignated, the
following:
``(V) the enrollment of such students
into a general educational development
(commonly known as a `GED') program;''.
(III) in subclause (VI), as so
redesignated, by striking ``rigorous
secondary school program of study that
will make such students eligible for
programs such as the Academic
Competitiveness Grants Program'' and
inserting ``secondary school program of
study that will prepare such students
to enter postsecondary education
without the need for remedial
education'';
(IV) by inserting after subclause
(VI), as so redesignated, the following
new subclause:
``(VII) the completion of financial aid
applications, including the Free Application
for Federal Student Aid described in section
483(a) and college admission applications;'';
(V) by striking ``(B) For programs
authorized under section 402C,'' and
inserting ``(B)(i) For programs
authorized under section 402C, except
in the case of projects that
specifically target veterans,''; and
(VI) by adding at the end the
following new clause:
``(ii) For programs authorized under section 402C
that specifically target veterans, the extent to which
the eligible entity met or exceeded the entity's
objectives for such program with respect to--
``(I) the delivery of service to a total
number of students served by the program, as
agreed upon by the entity and the Secretary for
the period;
``(II) such students' academic performance,
as measured by standardized tests;
``(III) the retention and completion of
participants in the project;
``(IV) the provision of assistance to
students served by the program in completing
financial aid applications, including the Free
Application for Federal Student Aid described
in section 483(a) and college admission
applications;
``(V) the enrollment of such students in an
institution of higher education; and
``(VI) to the extent practicable, the
postsecondary education completion rate of such
students.'';
(iii) in subparagraph (C)(ii)--
(I) in subclause (I), by striking
``in which such students were
enrolled'' and inserting ``within six
years of the initial enrollment of such
students in the program'';
(II) in subclause (II);
(aa) in the matter preceding
item (aa), by striking ``offer
a baccalaureate degree'' and
inserting ``primarily offer
baccalaureate degrees''; and
(bb) in item (aa), by
striking ``students; and'' and
inserting ``students within 4
years of the initial enrollment
of such students in the
program; or'';
(iv) in subparagraph (D)--
(I) in clause (iii), by striking ``;
and'' and inserting ``within two years
of receiving a baccalaureate degree;'';
(II) in clause (iv), by striking
``study and'' and all that follows
through the period and inserting
``study; and''; and
(III) by adding at the end the
following new clause:
``(v) the attainment of doctoral degrees by
former program participants within 10 years of
receiving a baccalaureate degree.''; and
(v) in subparagraph (E)(ii), by inserting ``,
or re-enrollment,'' after ``enrollment'';
(5) in subsection (g)--
(A) in the first sentence, by striking ``$900,000,000
for fiscal year 2009 and such sums as may be necessary
for'' and inserting ``$900,000,000 for fiscal year 2019
and'';
(B) in the second sentence--
(i) by striking ``no more than \1/2\ of 1''
and inserting ``not more than 1'';
(ii) by striking ``and to provide technical''
and inserting ``to provide technical''; and
(iii) by inserting before the period at the
end the following: ``, and to support
applications funded under the process outlined
in subsection (c)(8)(B)''; and
(C) by striking the last sentence; and
(6) in subsection (h)--
(A) by striking ``(5) Veteran eligibility.--No
veteran'' and inserting the following:
``(i) Veteran Eligibility.--(1) No Veteran'';
(B) in paragraph (6), by striking ``of paragraph
(5)'' and inserting ``of paragraph (1)'';
(C) by striking ``(6) Waiver.--The Secretary'' and
inserting the following:
``(2) The Secretary''.
(b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking ``and'' at the end;
(B) by redesignating paragraph (3) as paragraph (4);
and
(C) by inserting after paragraph (2) the following
new paragraph:
``(3) to advise such youths on the postsecondary institution
selection process, including consideration of the financial aid
awards offered and the potential loan burden required; and'';
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``and, where
necessary, remedial education services'' after
``academic tutoring services''; and
(B) by striking paragraph (6) and inserting the
following:
``(6) connections to education or counseling services
designed to--
``(A) improve the financial literacy and economic
literacy of students or the students' parents in order
to aid them in making informed decisions about how to
best finance their postsecondary education; and
``(B) assist students and families regarding career
choice.'';
(3) in subsection (c)(2), by striking ``career'' and
inserting ``academic''; and
(4) in subsection (d)--
(A) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively;
(B) by inserting after paragraph (1) the following
new paragraph:
``(2) require an assurance that the remaining youths
participating in the project proposed to be carried out in any
application be low-income individuals, first generation college
students, or students who have a high risk for academic
failure;'';
(C) in paragraph (4), as so redesignated--
(i) by inserting ``, section 402C,'' after
``under this section''; and
(ii) by striking ``and'' at the end;
(D) in paragraph (5), as so redesignated, by striking
the period at the end and inserting ``; and''; and
(E) by adding at the end the following:
``(6) require the grantee to maintain, to the extent
practicable, a record of any services participants receive
during the project year from another program under this chapter
or other federally funded programs serving similar populations
to minimize the duplication of services.''.
(c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
(1) in subsection (b)--
(A) by striking paragraph (1) and inserting:
``(1) academic tutoring, which may include instruction in
reading, writing, study skills, mathematics, science, and other
subjects and, where necessary, remedial education services, to
enable students to complete secondary or postsecondary
courses;''.
(B) in paragraph (4), by adding ``and'' at the end;
and
(C) by striking paragraphs (5) and (6) and inserting
the following:
``(5) education or counseling services designed to--
``(A) improve the financial literacy and economic
literacy of students or the students' parents in order
to aid them in making informed decisions about how to
best finance their postsecondary education; and
``(B) assist students and their families regarding
career choice.'';
(2) in subsection (d)--
(A) in paragraph (1), by striking ``youth'' and
inserting ``participants'';
(B) in paragraph (2), by striking ``youth
participating in the project'' and inserting ``project
participants''; and
(C) in paragraph (5), by striking ``youth
participating in the project'' and inserting ``project
participants'';
(3) in subsection (e)--
(A) in paragraph (4), by striking ``and'' at the end;
(B) by redesignating paragraph (5) as paragraph (6);
and
(C) by inserting after paragraph (4) the following:
``(5) require an assurance that individuals participating in
the project proposed in any application do not have access to
services from another project funded under this section,
section 402B, or section 402F;'';
(D) in paragraph (6), as so redesignated, by striking
the period at the end and inserting ``; and''; and
(E) by adding at the end the following:
``(7) for purposes of minimizing the duplication of services,
require that the grantee maintain, to the extent practicable, a
record of any services received by participants during the
program year from another program funded under this chapter, or
any other Federally funded program that serves populations
similar to the populations served by programs under this
chapter.''.
(4) by striking subsection (g) and redesignating subsection
(h) as subsection (g).
(d) Student Support Services.--Section 402D (20 U.S.C. 1070a-14) is
amended--
(1) in subsection (a)(3), by inserting ``low-income and first
generation college students, including'' after ``success of'';
(2) in subsection (b)(4)--
(A) by striking ``, including financial'' and
inserting ``, including--
``(A) financial''; and
(B) by adding at the end the following:
``(B) basic personal income, household money
management, and financial planning skills; and
``(C) basic economic decisionmaking skills;''; and
(3) in subsection (e)--
(A) in paragraph (5), by striking ``and'' at the end;
(B) by redesignating paragraph (6) as paragraph (7);
(C) by inserting after paragraph (5) the following:
``(6) require the grantee to maintain, to the extent
practicable, a record of any services participants receive
during the project year from another program under this chapter
or other federally funded programs serving similar populations
to minimize the duplication of services; and''.
(e) Postbaccalaureate Achievement Program Authority.--Section 402E
(20 U.S.C. 1070a-15) is amended--
(1) in subsection (b)(2), by striking ``summer internships''
and inserting ``internships and faculty-led research
experiences''; and
(2) in subsection (d)--
(A) in paragraph (3), by striking ``and'' at the end;
(B) in paragraph (4)--
(i) by striking ``summer'';
(ii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) the grantee to maintain, to the extent practicable, a
record of any services participants receive during the project
year from another program under this chapter or other federally
funded program serving similar populations to minimize the
duplication of services.''; and
(3) in subsection (g), by striking ``2009 through 2014'' and
inserting ``2019 through 2024''.
(f) Educational Opportunity Centers.--Section 402F (20 U.S.C. 1070a-
16) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``or re-enter''
after ``pursue''; and
(B) in paragraph (3), by striking ``of students'' and
inserting ``of such persons'';
(2) in subsection (b)(5), by striking ``students;'' and
inserting the following: ``students, including--
``(A) financial planning for postsecondary education;
``(B) basic personal income, household money
management, and financial planning skills; and
``(C) basic economic decisionmaking skills;''; and
(3) in subsection (c)--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(B) by inserting after paragraph (1) the following
new paragraph:
``(2) require an assurance that the remaining persons
participating in the project proposed to be carried out under
any application be low-income individuals or first generation
college students;'';
(C) in paragraph (3), as so redesignated, by striking
``and'' at the end;
(D) in paragraph (4), as so redesignated, by striking
the period at the end and inserting ``; and''; and
(E) by adding at the end the following:
``(5) require the grantee to maintain, to the extent
practicable, a record of any services participants receive
during the project year from another program under this chapter
or other federally funded program serving similar populations
to minimize the duplication of services.''.
(g) Staff Development Activities.--Section 402G(b) (20 U.S.C. 1070a-
17(b)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by inserting ``webinars and online classes,''
after ``seminars, workshops,''; and
(B) by striking ``directors'' and inserting
``staff''; and
(2) in paragraph (3), by inserting ``and innovative'' after
``model''.
(h) Reports, Evaluations, and Grants for Project Improvement and
Dissemination.--Subsection (b) of section 402H (20 U.S.C. 1070a-18) is
amended to read as follows:
``(b) Evaluations.--
``(1) In general.--For the purpose of improving the
effectiveness of the programs assisted under this chapter, the
Secretary shall make grants to or enter into contracts with one
or more organizations to--
``(A) evaluate the effectiveness of the programs
assisted under this chapter; and
``(B) disseminate information on the impact of the
programs in increasing the education level of
participants, as well as other appropriate measures.
``(2) Issues to be evaluated.--The evaluations described in
paragraph (1) shall measure the effectiveness of programs
funded under this chapter in--
``(A) meeting or exceeding the stated objectives
regarding the outcome criteria under subsection (f) of
section 402A;
``(B) enhancing the access of low-income individuals
and first-generation college students to postsecondary
education;
``(C) preparing individuals for postsecondary
education;
``(D) comparing the level of education completed by
students who participate in the programs funded under
this chapter with the level of education completed by
students of similar backgrounds who do not participate
in such programs;
``(E) comparing the retention rates, dropout rates,
graduation rates, and college admission and completion
rates of students who participate in the programs
funded under this chapter with the rates of students of
similar backgrounds who do not participate in such
programs; and
``(F) such other issues as the Secretary considers
appropriate for inclusion in the evaluation.
``(3) Program methods.--Such evaluations shall also
investigate the effectiveness of alternative and innovative
methods within programs funded under this chapter of increasing
access to, and retention of, students in postsecondary
education.
``(4) Results.--The Secretary shall submit to the authorizing
committees--
``(A) an interim report on the progress and
preliminary results of the evaluation of each program
funded under this chapter not later than 2 years
following the date of enactment of the PROSPER Act; and
``(B) a final report not later than 3 years following
the date of enactment of such Act.
``(5) Public availability.--All reports and underlying data
gathered pursuant to this subsection shall be made available to
the public upon request, in a timely manner following
submission of the applicable reports under this subsection,
except that any personally identifiable information with
respect to a student participating in a program or project
assisted under this chapter shall not be disclosed or made
available to the public.''.
(i) IMPACT Grants.--Part A of title IV (20 U.S.C. 1070 et seq.) is
amended by inserting after section 402H (20 U.S.C. 1070a-28) the
following:
``SEC. 402I. IMPACT GRANTS.
``(a) In General.--From funds reserved under subsection (e), the
Secretary shall make grants to improve postsecondary access and
completion rates for qualified individuals from disadvantaged
backgrounds. These grants shall be known as innovative measures
promoting postsecondary access and completion grants or `IMPACT Grants'
and allow eligible entities to--
``(1) create, develop, implement, replicate, or take to scale
evidence-based, field-initiated innovations, including through
pay-for-success initiatives, to serve qualified individuals
from disadvantaged backgrounds and improve student outcomes;
and
``(2) rigorously evaluate such innovations, in accordance
with subsection (d).
``(b) Description of Grants.--The grants described in subsection (a)
shall include--
``(1) early-phase grants to fund the development,
implementation, and feasibility testing of a program, which
prior research suggests has a promise, for the purpose of
determining whether the program can successfully improve
postsecondary access and completion rates;
``(2) mid-phase grants to fund implementation and a rigorous
evaluation of a program that has been successfully implemented
under an early-phase grant described in paragraph (1); and
``(3) expansion grants to fund implementation and a rigorous
replication evaluation of a program that has been found to
produce sizable, important impacts under a mid-phase grant
described in paragraph (2) for the purposes of--
``(A) determining whether such outcomes can be
successfully reproduced and sustained over time; and
``(B) identifying the conditions in which the project
is most effective.
``(c) Requirements for Approval of Applications.--To receive a grant
under this section, an eligible entity shall submit an application to
the Secretary at such time, and in such manner as the Secretary may
require, which shall include--
``(1) an assurance that not less than two-thirds of the
individuals who will participate in the program proposed to be
carried out with the grant will be--
``(A) low-income individuals who are first generation
college students; or
``(B) individuals with disabilities;
``(2) an assurance that any other individuals (not described
in paragraph (1)) who will participate in such proposed program
will be--
``(A) low-income individuals;
``(B) first generation college students; or
``(C) individuals with disabilities;
``(3) a detailed description of the proposed program,
including how such program will directly benefit students;
``(4) the number of projected students to be served by the
program;
``(5) how the program will be evaluated; and
``(6) an assurance that the individuals participating in the
project proposed are individuals who do not have access to
services from another programs funded under this section.
``(d) Evaluation.--Each eligible entity receiving a grant under this
section shall conduct an independent evaluation of the effectiveness of
the program carried out with such grant and shall submit to the
Secretary, on an annual basis, a report that includes--
``(1) a description of how funds received under this section
were used;
``(2) the number of students served by the project carried
out under this section; and
``(3) a quantitative analysis of the effectiveness of the
project.
``(e) Funding.--From amounts appropriated under section 402A(g), the
Secretary shall reserve not less than 10 percent of such funds to carry
out this section.''.
SEC. 403. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
PROGRAMS.
(a) Early Intervention and College Awareness Program.--Section 404A
(20 U.S.C. 1070a-21) is amended--
(1) in subsection (a)(1), by striking ``academic support''
and inserting ``academic support for college readiness'';
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``new'' before
``awards''; and
(B) in paragraph (3)--
(i) by amending subparagraph (A) to read as
follows:
``(A) give priority to eligible entities that have a
prior, demonstrated commitment to early intervention
leading to college access and readiness through
collaboration and replication of successful strategies;
and''; and
(ii) in subparagraph (B), by striking ``the
Higher Education Opportunity Act'' and
inserting ``the PROSPER Act''; and
(C) by adding at the end the following:
``(4) Multiple award prohibition.--Eligible entities
described in subsection (c)(1) that receive a grant under this
chapter shall not be eligible to receive an additional grant
under this chapter until after the date on which the initial
grant period expires.''.
(3) in subsection (c)(2)(B), by striking ``institutions or
agencies sponsoring programs authorized under subpart 4,''.
(b) Applications.--Section 404C (20 U.S.C. 1070a-23) is amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph
(A)--
(I) by striking ``, contain or be
accompanied by such information or
assurances,''; and
(II) by striking ``, at a minimum'';
(ii) by amending subparagraph (B) to read as
follows:
``(B) describe, in the case of an eligible entity
described in section 404A(c)(2) that chooses to provide
scholarships, or an eligible entity described in
section 404A(c)(1)--
``(i) the eligible entity's plan to establish
or maintain a financial assistance program in
accordance with the requirements of section
404E, including any eligibility criteria other
than the criteria described in section 404E(g),
such as--
``(I) demonstrating financial need;
``(II) meeting and maintaining
satisfactory academic progress; and
``(III) other criteria aligned with
State and local goals to increase
postsecondary readiness, access, and
completion; and
``(ii) how the eligible entity will meet the
other requirements of section 404E;'';
(iii) by striking subparagraph (H); and
(iv) by redesignating subparagraphs (I) and
(J) as subparagraphs (H) and (I), respectively;
and
(2) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) Special rule.--Notwithstanding the matching requirement
described in paragraph (1)(A), the Secretary may--
``(A) at the time of application--
``(i) approve a Partnership applicant's
request for a waiver of up to 75 percent of the
matching requirement for up to two years if the
applicant demonstrates in its application a
significant economic hardship that stems from a
specific, exceptional, or uncontrollable event,
such as a natural disaster, that has a
devastating effect on the members of the
Partnership and the community in which the
project would operate;
``(ii)(I) approve a Partnership applicant's
request to waive up to 50 percent of the
matching requirement for up to two years if the
applicant demonstrates in its application a
pre-existing and an on-going significant
economic hardship that precludes the applicant
from meeting its matching requirement; and
``(II) provide tentative approval of an
applicant's request for a waiver under
subclause (I) for all remaining years of the
project period;
``(iii) approve a Partnership applicant's
request in its application to match its
contributions to its scholarship fund,
established under section 404E, on the basis of
two non-Federal dollars for every one dollar of
Federal funds provided under this chapter; or
``(iv) approve a request by a Partnership
applicant that has three or fewer institutions
of higher education as members to waive up to
70 percent of the matching requirement if the
Partnership applicant includes--
``(I) a fiscal agent that is eligible
to receive funds under title V, or part
B of title III, or section 316 or 317,
or a local educational agency;
``(II) only participating schools
with a 7th grade cohort in which at
least 75 percent of the students are
eligible for free or reduced-price
lunch under the Richard B. Russell
National School Lunch Act; and
``(III) only local educational
agencies in which at least 50 percent
of the students enrolled are eligible
for free or reduced-price lunch under
the Richard B. Russell National School
Lunch Act; and
``(B) after a grant is awarded, approve a Partnership
grantee's written request for a waiver of up to--
``(i) 50 percent of the matching requirement
for up to two years if the grantee demonstrates
that--
``(I) the matching contributions
described for those two years in the
grantee's approved application are no
longer available; and
``(II) the grantee has exhausted all
funds and sources of potential
contributions for replacing the
matching funds; or
``(ii) 75 percent of the matching requirement
for up to two years if the grantee demonstrates
that matching contributions from the original
application are no longer available due to an
uncontrollable event, such as a natural
disaster, that has a devastating economic
effect on members of the Partnership and the
community in which the project would operate.
``(3) Additional terms.--
``(A) On-going economic hardship.--In determining
whether a Partnership applicant is experiencing an on-
going economic hardship that is significant enough to
justify a waiver under subparagraphs (A)(i) and
(A)(ii)(I) of paragraph (2), the Secretary may consider
documentation of the following:
``(i) Severe distress in the local economy of
the community to be served by the grant (e.g.,
there are few employers in the local area,
large employers have left the local area, or
significant reductions in employment in the
local area).
``(ii) Local unemployment rates that are
higher than the national average.
``(iii) Low or decreasing revenues for State
and County governments in the area to be served
by the grant.
``(iv) Significant reductions in the budgets
of institutions of higher education that are
participating in the grant.
``(v) Other data that reflect a significant
economic hardship for the geographical area
served by the applicant.
``(B) Exhaustion of funds.--In determining whether a
Partnership grantee has exhausted all funds and sources
of potential contributions for replacing matching funds
under paragraph (2)(B), the secretary may consider the
grantee's documentation of key factors that have had a
direct impact on the grantee such as the following:
``(i) A reduction of revenues from State
government, County government, or the local
educational agency.
``(ii) An increase in local unemployment
rates.
``(iii) Significant reductions in the
operating budgets of institutions of higher
education that are participating in the grant.
``(iv) A reduction of business activity in
the local area (e.g., large employers have left
the local area).
``(v) Other data that reflect a significant
decrease in resources available to the grantee
in the local geographical area served by the
grantee.
``(C) Renewal of waiver.--A Partnership applicant
that receives a tentative approval of a waiver under
subparagraph (A)(ii)(II) of paragraph (2) for more than
two years under this paragraph must submit to the
Secretary every two years by such time as the Secretary
may direct documentation that demonstrates that--
``(i) the significant economic hardship upon
which the waiver was granted still exists; and
``(ii) the grantee tried diligently, but
unsuccessfully, to obtain contributions needed
to meet the matching requirement.
``(D) Multiple waivers.--If a grantee has received
one or more waivers under paragraph (2), the grantee
may request an additional waiver of the matching
requirement under this subsection not earlier than 60
days before the expiration of the grantee's existing
waiver.''.
(c) Activities.--Section 404D (20 U.S.C. 1070a-24) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``financial aid
for'' and inserting ``financial aid, including loans,
grants, scholarships, and institutional aid for'';
(B) in paragraph (2) by striking ``rigorous and
challenging curricula and coursework, in order to'' and
inserting ``curricula and coursework designed to'';
(C) by redesignating paragraphs (3) and (4) as
paragraphs (5) and (6), respectively;
(D) by inserting after paragraph (2) the following:
``(3) Providing information to students and families about
the advantages of obtaining a postsecondary education.
``(4) Providing tutors and mentors, who may include adults or
former participants of a program under this chapter, for use by
eligible students in need.'';
(E) in paragraph (5), as so redesignated, by striking
``Improving'' and inserting ``Providing supportive
services to improve''; and
(2) in subsection (b)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (15) as
paragraphs (1) through (14), respectively;
(C) in paragraph (3), as so redesignated, by striking
``rigorous'' each place it appears;
(D) in paragraph (9), as so redesignated--
(i) by redesignating subparagraphs (E)
through (K) as subparagraphs (F) through (L),
respectively;
(ii) by inserting after subparagraph (D) the
following:
``(E) providing counseling or referral services to
address the behavioral, social-emotional, and mental
health needs of at-risk students;'';
(iii) in subparagraph (I), as so
redesignated, by striking ``skills
assessments'' and inserting ``skills,
cognitive, non-cognitive, and credit-by-
examination assessments'';
(iv) in subparagraph (K), as so redesignated,
by striking ``and'' at the end;
(v) in subparagraph (L), as so redesignated,
by striking the period at the end and inserting
``; and''; and
(vi) by adding at the end the following:
``(M) capacity building activities that create
college-going cultures in participating schools and
local education agencies.''; and
(E) by adding at the end the following:
``(15) Creating or expanding drop-out recovery programs that
allow individuals who drop out of school to complete a regular
secondary school diploma and begin college-level work.'';
(3) in subsection (c)--
(A) in paragraph (3), by inserting ``and technical
assistance'' after ``administrative support''; and
(B) by striking paragraph (9); and
(4) in subsection (e), by striking ``institutions and
agencies sponsoring programs authorized under subpart 4,''.
(d) Scholarship Requirements.--Section 404E (20 U.S.C. 1070a-25) is
amended--
(1) in subsection (a)(1), by inserting ``described in section
404C(a)(2)(B)(i)'' after ``financial assistance program''; and
(2) in subsection (e)(1), by striking ``an amount'' and all
that follows through the period at the end and inserting the
following: ``an estimated amount that is based on the
requirements of the financial assistance program of the
eligible entity described in section 404C(a)(2)(B)(i).''
(e) Evaluation and Report.--Section 404G(b) (20 U.S.C. 1070a-27(b))
is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''
(3) by adding after paragraph (2) the following:
``(3) include the following metrics:
``(A) the number of students completing the Free
Application for Federal Student Aid;
``(B) the enrollment of participating students in
curricula and coursework designed to reduce the need
for remedial coursework at the postsecondary level;
``(C) if applicable, the number of students receiving
a scholarship;
``(D) the graduation rate of participating students
from high school;
``(E) the enrollment of participating students into
postsecondary education; and
``(F) such other information as the Secretary may
require.''.
(f) Authorization of Appropriations.--Section 404H (20 U.S.C. 1070a-
28) is amended by striking ``$400,000,000 for fiscal year 2009 and such
sums as may be necessary for each of the five succeeding fiscal years''
and inserting ``$339,754,000 for fiscal year 2019 and each of the five
succeeding fiscal years''.
SEC. 404. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED IN
MIGRANT AND SEASONAL FARMWORK.
Section 418A(i) (20 U.S.C. 1070d--2(i)) is amended by striking
``$75,000,000'' and all that follows through the period at the end and
inserting ``$44,623,000 for each of fiscal years 2019 through 2024.''.
SEC. 405. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
Section 419N (20 U.S.C. 1070e) is amended--
(1) in the heading of paragraph (6) of subsection (b), by
striking ``Construction'' and inserting ``Rule of
construction''; and
(2) in subsection (c)--
(A) in paragraph (4), by striking ``assisted'' and
inserting ``funded'';
(B) in paragraph (5)--
(i) by striking ``resources, including
technical expertise'' and inserting
``resources, including non-Federal resources,
technical expertise,'';
(ii) by striking ``the use of the'' and
inserting ``these''; and
(C) in paragraph (9)--
(i) by inserting ``provisional status,''
after ``approval,''; and
(ii) by striking ``; and'' and inserting
``prior to serving children and families;
and'';
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``local'' and inserting
``non-Federal, local,''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) coordinate with other community programs where
appropriate to improve the quality and limit cost of the
campus-based program.'';
(4) by amending subsection (e) to read as follows:
``(e) Reporting Requirements; Continuing Eligibility.--
``(1) Reporting requirements.--
``(A) Reports.--Each institution of higher education
receiving a grant under this section shall report to
the Secretary annually. The Secretary shall annually
publish such reports on a publicly accessible website
of the Department of Education.
``(B) Contents.--Each report shall include--
``(i) data on the population served under
this section, including the total number of
children and families served;
``(ii) information on sources of campus and
community resources and the amount of non-
Federal funding used to help low-income
students access child care services on campus;
``(iii) documentation that the program meets
applicable licensing, certification, approval,
or registration requirements; and
``(iv) a description of how funding was used
to pursue the goals of this section determined
by the institution under subsection (c).
``(2) Continuing eligibility.--The Secretary shall make
continuation awards under this section to an institution of
higher education only if the Secretary determines, on the basis
of the reports submitted under paragraph (1) and the
application from the institution, that the institution is--
``(A) using funds only for authorized purposes;
``(B) providing low-income students at the
institution with priority access to affordable, quality
child care services as provided under this section; and
``(C) documenting a continued need for Federal
funding under this section, while demonstrating how
non-federal sources will be leveraged to support a
continuation award.''; and
(5) in subsection (g), by striking ``such sums as may be
necessary for fiscal year 2009 and each of the five succeeding
fiscal years'' and inserting ``$15,134,000 for each of fiscal
years 2019 through 2024''.
SEC. 406. REPEALS.
(a) Academic Competitiveness Grants.--Section 401A (20 U.S.C. 1070a-
1) is repealed.
(b) Federal Supplemental Educational Opportunity Grants.--
(1) Repeal.--Subpart 3 of part A of title IV (20 U.S.C. 1070b
et seq.) is repealed.
(2) Effective date.--The repeal made by paragraph (1) shall
take effect on June 30, 2018.
(3) Appropriations.--Notwithstanding paragraphs (1) and (2),
sums appropriated under section 413A for fiscal year 2018 shall
be available for payments to institutions of higher education
under such section (as in effect on June 29, 2018) until the
end of fiscal year 2019.
(c) Leveraging Educational Assistance Partnership Program.--Subpart 4
of part A of title IV (20 U.S.C. 1070c et seq.) is repealed.
(d) Robert C. Byrd Honors Scholarship Program.--Subpart 6 of part A
of title IV (20 U.S.C. 1070d-31 et seq.) is repealed.
SEC. 407. SUNSET OF TEACH GRANTS.
Subpart 9 of part A of title IV (20 U.S.C. 1070g) is amended--
(1) in section 420L(1) (20 U.S.C. 1070g(1), by striking
``section 102'' and inserting ``section 102 (as in effect on
the day before the date of enactment of the PROSPER Act)'';
(2) in section 420N (20 U.S.C. 1070g-2)--
(A) by amending subparagraph (B) of subsection (b)(1)
to read as follows:
``(B) teach--
``(i) in a public or other nonprofit private
elementary school or secondary school, which,
for the purpose of this paragraph and for that
year--
``(I) has been determined by the
Secretary (pursuant to regulations of
the Secretary and after consultation
with the State educational agency of
the State in which the school is
located) to be a school in which the
number of children meeting a measure of
poverty under section 1113(a)(5) of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6313(a)(5)), exceeds
30 percent of the total number of
children enrolled in such school; and
``(II) is in the school district of a
local educational agency which is
eligible in such year for assistance
pursuant to part A of title I of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311 et seq.); or
``(ii) in one or more public, or nonprofit
private, elementary schools or secondary
schools or locations operated by an educational
service agency that have been determined by the
Secretary (pursuant to regulations of the
Secretary and after consultation with the State
educational agency of the State in which the
educational service agency operates) to be a
school or location at which the number of
children taught who meet a measure of poverty
under section 1113(a)(5) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6313(a)(5)), exceeds 30 percent of the total
number of children taught at such school or
location;''; and
(B) in subsection (c), by inserting ``(as in effect
on the day before the date of the enactment of the
PROSPER Act)'' after ``part D of title IV'';
(3) in section 420M(a) (20 U.S.C. 1070g-1), by adding at the
end the following:
``(3) Termination.--
``(A) Termination of program authority.--Except as
provided in paragraph (4), no new grants may be made
under this subpart after June 30, 2018.
``(B) Limitation on funds.--
``(i) In general.--No funds are authorized to
be appropriated, and no funds may be obligated
or expended under this Act or any other Act, to
make a grant to a new recipient under this
subpart.
``(ii) New recipient defined.--For purposes
of this subparagraph, the term `new recipient'
means a teacher candidate who has not received
a grant under this subpart for which the first
disbursement was on or before June 30, 2018.
``(4) Student eligibility beginning with award year 2018.--
With respect to a recipient of a grant under this subpart for
which the first disbursement was made on or before June 30,
2018, such recipient may receive additional grants under this
subpart until the earlier of--
``(A) the date on which the recipient completes the
course of study for which the recipient received the
grant for which the first disbursement was made on or
before June 30, 2018; or
``(B) the date on which the recipient receives the
total amount that the recipient may receive under this
subpart in accordance with subsection (d).''; and
(4) in section 420O (20 U.S.C. 1070g-3)--
(A) by striking ``2008'' and inserting ``2008, and
ending on June 30, 2018''; and
(B) by adding at the end the following: ``Except as
provided in section 420M(a)(4), no funds shall be
available to the Secretary to carry out this subpart
after June 30, 2018.''.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 421. FEDERAL DIRECT CONSOLIDATION LOANS.
Section 428C (20 U.S.C. 1078-3) is amended--
(1) in subsection (a)(4)(B), by inserting before the
semicolon at the end ``, as in effect on the day before the
date of enactment of the PROSPER Act and pursuant to section
461(a) of such Act''; and
(2) in subsection (b)(1)(F)(ii)--
(A) in the matter preceding subclause (I), by
inserting ``, as in effect on the day before the date
of enactment of the PROSPER Act and pursuant to section
461(a) of such Act'' after ``part E'';
(B) in subclause (I), in the matter preceding item
(aa), by inserting ``, as so in effect,'' after ``part
E'';
(C) in subclause (I)(bb), by inserting ``, as so in
effect'' after ``section 464(c)(1)(A)'';
(D) in subclause (II), by inserting ``, as so in
effect'' after ``section 465(a)''; and
(E) in subclause (III)--
(i) by inserting ``, as so in effect'' after
``section 465''; and
(ii) by inserting ``, as so in effect'' after
``465(a)''.
SEC. 422. LOAN REHABILITATION.
Section 428F(a)(5) (20 U.S.C. 1078-6) is amended by striking ``one
time'' and inserting ``two times''.
SEC. 423. LOAN FORGIVENESS FOR TEACHERS.
Section 428J(b)(1)(A) (20 U.S.C. 1078-10(b)(1)(A)) is amended by
striking ``that qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who teach in such schools or
locations'' and inserting ``described in section 420N(b)(1)(B)''.
SEC. 424. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
Section 428K (20 U.S.C. 1078-11) is amended--
(1) in subsection (b)--
(A) in paragraph (4)(B), by striking ``that qualifies
under section 465(a)(2)(A) for loan cancellation for
Perkins loan recipients who teach in such a school''
and inserting ``described in section 420N(b)(1)(B)'';
(B) in paragraph (5)(B)(ii), by striking ``that
qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who teach in
such a school'' and inserting ``described in section
420N(b)(1)(B)'';
(C) in paragraph (7)(A), by striking ``that qualifies
under section 465(a)(2)(A) for loan cancellation for
Perkins loan recipients who teach in such a school''
and inserting ``described in section 420N(b)(1)(B)'';
(D) in paragraph (8)(B), by striking ``that qualifies
under section 465(a)(2)(A) for loan cancellation for
Perkins loan recipients who teach in such a school''
and inserting ``described in section 420N(b)(1)(B)'' ;
and
(E) in paragraph (16), by striking ``that qualify
under section 465(a)(2)(A) for loan cancellation for
Perkins loan recipients who teach in such a school''
and inserting ``described in section 420N(b)(1)(B)'';
and
(2) in subsection (g)(6)(B), by striking ``that qualifies
under section 465(a)(2)(A) for loan cancellation for Perkins
loan recipients who teach in such a school'' and inserting
``described in section 420N(b)(1)(B)''.
SEC. 425. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.
Section 428L(b)(2)(A) (20 U.S.C. 1078-12(b)(2)(A)) is amended--
(1) in clause (i), by inserting before the semicolon at the
end ``, as in effect on the day before the date of enactment of
the PROSPER Act and pursuant to section 461(a) of such Act'';
and
(2) in clause (ii)(III), by inserting ``, as in effect on the
day before the date of enactment of the PROSPER Act and
pursuant to section 461(a) of such Act'' after ``part E'';
SEC. 426. SUNSET OF COHORT DEFAULT RATE AND OTHER CONFORMING CHANGES.
(a) Requirements for the Secretary.--Section 430(e) (20 U.S.C.
1080(e)) is amended by adding at the end the following:
``(4) Sunset.--The Secretary shall not be subject to the
requirements of this subsection after the transition period
described in section 481B(e)(3).''.
(b) Eligible Institution Defined.--Section 435 (20 U.S.C. 1085) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``section 102'' and
inserting ``sections 101 and 102''; and
(B) by adding at the end the following:
``(9) Sunset.--No institution shall be subject to paragraph
(2) after the transition period described in section
481B(e)(3).'';
(2) in subsection (m), by adding at the end the following:
``(5) Transition period; sunset.--
``(A) Transition period.--During the transition
period, the cohort default rate for an institution
shall be calculated in the manner described in section
481B(e)(1).
``(B) Sunset.--The Secretary shall not be subject,
and no institution shall be subject, to the
requirements of this subsection after the transition
period.
``(C) Definition.--In this paragraph, the term
`transition period' has the meaning given the term in
section 481B(e)(3).''; and
(3) in subsection (o)(1), by inserting ``, as in effect on
the day before the date of enactment of the PROSPER Act and
pursuant to section 461(a) of such Act'' after ``part E''.
SEC. 427. ADDITIONAL DISCLOSURES.
Section 433(a) (20 U.S.C. 1083(a)) is amended--
(1) in the matter preceding paragraph (1), by striking the
second sentence and inserting ``Any disclosure required by this
subsection shall be made on the Plain Language Disclosure Form
developed by the Secretary under section 455(p).'';
(2) in paragraph (4), by striking ``the origination fee and''
and inserting ``finance charges, the origination fee, and'';
(3) by redesignating paragraphs (6) through (19) as
paragraphs (7) through (20), respectively; and
(4) by inserting after paragraph (5), the following:
``(6) the annual percentage rate of the loan, as calculated
using the standard 10-year repayment term, and how interest
accrues and is capitalized during periods when the interest is
not paid by the borrower;''.
SEC. 428. CLOSED SCHOOL AND OTHER DISCHARGES.
Section 437(c) (20 U.S.C. 1087) is amended--
(1) in paragraph (1), by inserting ``and the borrower meets
the applicable requirements of paragraphs (6) through (8),''
after ``such student's lender,'';
(2) in paragraph (4), by inserting before the period at the
end ``, as in effect on the day before the date of enactment of
the PROSPER Act and pursuant to section 461(a) of such Act'';
and
(3) by adding at the end the following:
``(6) Borrower qualifications for a closed school
discharge.--
``(A) In general.--In order to qualify for the
discharge of a loan under this subsection due to the
closure of the institution in which the borrower was
enrolled, a borrower shall submit to the Secretary a
written request and sworn statement--
``(i) that contains true factual assertions;
``(ii) that is made by the borrower under
penalty of perjury, and that may or may not be
notarized;
``(iii) under which the borrower (or the
student on whose behalf a parent borrowed)
states--
``(I) that the borrower or the
student--
``(aa) received, on or after
January 1, 1986, the proceeds
of a loan made, insured, or
guaranteed under this title to
attend a program of study at an
institution of higher
education;
``(bb)(AA) did not complete
the program of study because
the institution closed while
the student was enrolled; or
``(BB) the student withdrew
from the institution not more
than 120 days before the
institution closed, or in the
case of exceptional
circumstances described in
subparagraph (B), not more than
the period by which such 120-
day period is extended under
such subparagraph; and
``(cc) attempted but was
unable to complete the program
of study through a teach-out at
another institution or by
transferring academic credits
or hours earned at the closed
institution to another
institution;
``(II) whether the borrower (or the
student) has made a claim with respect
to the institutions's closing with any
third party, such as the holder of a
performance bond or a tuition recovery
program, and, if so, the amount of any
payment received by the borrower (or
the student) or credited to the
borrower's loan obligation; and
``(III) that the borrower (or the
student)--
``(aa) agrees to provide to
the Secretary or the holder of
the loan upon request other
documentation reasonably
available to the borrower that
demonstrates that the borrower
meets the qualifications for
discharge under this
subsection; and
``(bb) agrees to cooperate
with the Secretary in
enforcement actions in
accordance with subparagraph
(C) and to transfer any right
to recovery against a third
party to the Secretary in
accordance with subparagraph
(D).
``(B) Exceptional circumstances.--
``(i) In general.--The Secretary may extend
the 120-day period described in subparagraph
(A)(iii)(I)(bb)(BB) if the Secretary determines
that exceptional circumstances related to an
institution's closing justify an extension.
``(ii) Definition.--For purposes of this
subsection, the term `exceptional
circumstances', when used with respect to an
institution that closed, includes the loss of
accreditation of institution, the
institutions's discontinuation of the majority
of its academic programs, action by the State
to revoke the institution's license to operate
or award academic credentials in the State, or
a finding by a State or Federal Government
agency that the institution violated State or
Federal law.
``(C) Cooperation by borrower in enforcement
actions.--
``(i) In general.--In order to obtain a
discharge described in subparagraph (A), a
borrower shall cooperate with the Secretary in
any judicial or administrative proceeding
brought by the Secretary to recover amounts
discharged or to take other enforcement action
with respect to the conduct on which the
discharge was based. At the request of the
Secretary and upon the Secretary's tendering to
the borrower the fees and costs that are
customarily provided in litigation to reimburse
witnesses, the borrower shall--
``(I) provide testimony regarding any
representation made by the borrower to
support a request for discharge;
``(II) produce any documents
reasonably available to the borrower
with respect to those representations;
and
``(III) if required by the Secretary,
provide a sworn statement regarding
those documents and representations.
``(ii) Denial of request for discharge.--The
Secretary shall deny the request for such a
discharge or revoke the discharge of a borrower
who--
``(I) fails to provide the testimony,
documents, or a sworn statement
required under clause (i); or
``(II) provides testimony, documents,
or a sworn statement that does not
support the material representations
made by the borrower to obtain the
discharge.
``(D) Transfer to the secretary of borrower's right
of recovery against third parties.--
``(i) In general.--Upon receiving a discharge
described in subparagraph (A) of a loan, the
borrower shall be deemed to have assigned to
and relinquished in favor of the Secretary any
right to a loan refund for such loan (up to the
amount discharged) that the borrower (or
student) may have by contract or applicable law
with respect to the loan or the enrollment
agreement for the program for which the loan
was received, against the institution, its
principals, its affiliates and their
successors, its sureties, and any private fund,
including the portion of a public fund that
represents funds received from a private party.
``(ii) Application.--The provisions of this
subsection apply notwithstanding any provision
of State law that would otherwise restrict
transfer of such rights by the borrower (or
student), limit, or prevent a transferee from
exercising such rights, or establish procedures
or a scheme of distribution that would
prejudice the Secretary's ability to recover on
such rights.
``(iii) Rule of construction.--Nothing in
this subsection shall limit or foreclose the
borrower's (or student's) right to pursue legal
and equitable relief regarding disputes arising
from matters unrelated to the discharged loan.
``(E) Discharge procedures.--
``(i) In general.--After confirming the date
of an institution's closure, the Secretary
shall identify any borrower (or student on
whose behalf a parent borrowed) who appears to
have been enrolled at the institution on the
closure date of the institution or to have
withdrawn not more than 120 days prior to the
closure date (or in the case of exceptional
circumstances described in subparagraph (B),
not more than the period by which such 120-day
period is extended under such subparagraph. In
the case of a loan made, insured, or guaranteed
under this part, a guaranty agency shall notify
the Secretary immediately whenever it becomes
aware of reliable information indicating an
institution may have closed.
``(ii) Borrower address.--
``(I) Known.--If the borrower's
current address is known, the Secretary
shall mail the borrower a discharge
application and an explanation of the
qualifications and procedures for
obtaining a discharge. The Secretary or
the guaranty agency shall promptly
suspend any efforts to collect from the
borrower on any affected loan. The
Secretary may continue to receive
borrower payments of the loan for which
the discharge application has been
filed.
``(II) Unknown.--If the borrower's
current address is unknown, the
Secretary shall attempt to locate the
borrower and determine the borrower's
potential eligibility for a discharge
described in subparagraph (A) by
consulting with representatives of the
closed institution, the institution's
licensing agency, the institution's
accrediting agency, and other
appropriate parties. If the Secretary
learns the new address of a borrower,
the Secretary shall mail to the
borrower a discharge application and
explanation, and shall suspend
collection on the loan, as described in
subclause (I).
``(iii) Sworn statement.--If a borrower fails
to submit the written request and sworn
statement described subparagraph (A) not later
than 60 days after date on which the Secretary
mails the discharge application under clause
(ii), the Secretary--
``(I) shall resume collection on the
loan and grant forbearance of principal
and interest for the period in which
collection activity was suspended; and
``(II) may capitalize any interest
accrued and not paid during such
period.
``(iv) Notification.--
``(I) Qualifications met.--If the
Secretary determines that a borrower
who requests a discharge described in
subparagraph (A) meets the
qualifications for such a discharge,
the Secretary shall--
``(aa) notify the borrower in
writing of that determination;
and
``(bb) not regard a borrower
who has defaulted on a loan
that has been so discharged as
in default on the loan after
such discharge, and such a
borrower shall be eligible to
receive assistance under this
title.
``(II) Qualifications not met.--If
the Secretary determines that a
borrower who requests a discharge
described in subparagraph (A) does not
meet the qualifications for such a
discharge, the Secretary or guaranty
agency shall resume collection on the
loan and notify the borrower in writing
of that determination and the reasons
for the determination.
``(7) Borrower qualifications for a false certification
discharge.--
``(A) Application.--
``(i) In general.--In order to qualify for
false certification discharge under this
subsection, the borrower shall submit to the
Secretary, on a form approved by the Secretary,
an application for discharge that--
``(I) does not need not be notarized,
but shall be made by the borrower under
penalty of perjury; and
``(II) demonstrates to the
satisfaction of the Secretary that the
requirements in subparagraphs (B)
through (G) have been met.
``(ii) Notification.--If the Secretary
determines the application does not meet the
requirements of clause (i), the Secretary shall
notify the applicant and explain why the
application does not meet the requirements.
``(B) High school diploma or equivalent.--In the case
of a borrower requesting a false certification
discharge based on not having had a high school diploma
and not having met the alternative to graduation from
high school eligibility requirements under section
484(d) applicable at the time the loan was originated,
and the institution or a third party to which the
institution referred the borrower falsified the
student's high school diploma, the borrower shall state
in the application that the borrower (or the student on
whose behalf a parent borrowed)--
``(i) reported not having a valid high school
diploma or its equivalent at the time the loan
was certified; and
``(ii) did not satisfy the alternative to
graduation from high school statutory or
regulatory eligibility requirements identified
on the application form and applicable at the
time the institution certified the loan.
``(C) Disqualifying condition.--In the case of a
borrower requesting a false certification discharge
based on a condition that would disqualify the borrower
from employment in the occupation that the program for
which the borrower received the loan was intended, the
borrower shall state in the application that the
borrower (or student on whose behalf the parent
borrowed) did not meet State requirements for
employment (in the student's State of residence) in the
occupation that the program for which the borrower
received the loan was intended because of a physical or
mental condition, age, criminal record, or other reason
accepted by the Secretary.
``(D) Unauthorized loan.--In the case of a borrower
requesting a discharge under this subsection because
the institution signed the borrower's name on the loan
application or promissory note without the borrower's
authorization, the borrower shall--
``(i) state that the borrower did not sign
the document in question or authorize the
institution to do so; and
``(ii) provide 5 different specimens of the
borrower's signature, 2 of which must be within
one year before or after the date of the
contested signature.
``(E) Unauthorized payment.--In the case of a
borrower requesting a false certification discharge
because the institution, without the borrower's
authorization, endorsed the borrower's loan check or
signed the borrower's authorization for electronic
funds transfer, the borrower shall--
``(i) state that the borrower did not endorse
the loan check or sign the authorization for
electronic funds transfer or authorize the
institution to do so;
``(ii) provide 5 different specimens of the
borrower's signature, 2 of which must be within
one year before or after the date of the
contested signature; and
``(iii) state that the proceeds of the
contested disbursement were not delivered to
the borrower or applied to charges owed by the
borrower to the institution.
``(F) Identity theft.--
``(i) In general.--In the case of an
individual whose eligibility to borrow was
falsely certified because the individual was a
victim of the crime of identity theft and is
requesting a discharge, the individual shall--
``(I) certify that the individual did
not sign the promissory note, or that
any other means of identification used
to obtain the loan was used without the
authorization of the individual
claiming relief;
``(II) certify that the individual
did not receive or benefit from the
proceeds of the loan with knowledge
that the loan had been made without the
authorization of the individual;
``(III) provide a copy of a local,
State, or Federal court verdict or
judgment that conclusively determines
that the individual who is named as the
borrower of the loan was the victim of
a crime of identity theft; and
``(IV) if the judicial determination
of the crime does not expressly state
that the loan was obtained as a result
of the crime of identity theft,
provide--
``(aa) authentic specimens of
the signature of the
individual, as described in
subparagraph (D)(ii), or of
other means of identification
of the individual, as
applicable, corresponding to
the means of identification
falsely used to obtain the
loan; and
``(bb) statement of facts
that demonstrate, to the
satisfaction of the Secretary,
that eligibility for the loan
in question was falsely
certified as a result of the
crime of identity theft
committed against that
individual.
``(ii) Definitions.--For purposes of this
subparagraph:
``(I) Identity theft.--The term
`identity theft' means the unauthorized
use of the identifying information of
another individual that is punishable
under section 1028, 1028A, 1029, or
1030 of title 18, United States Code,
or substantially comparable State or
local law.
``(II) Identifying information.--The
term `identifying information'
includes--
``(aa) name, Social Security
number, date of birth, official
State or government issued
driver's license or
identification number, alien
registration number, government
passport number, and employer
or taxpayer identification
number;
``(bb) unique biometric data,
such as fingerprints,
voiceprint, retina or iris
image, or unique physical
representation;
``(cc) unique electronic
identification number, address,
or routing code; or
``(dd) telecommunication
identifying information or
access device (as defined in 18
U.S.C. 1029(e)) borrower
qualifications for a false
certification discharge
``(G) Claim to third party.--The borrower shall state
whether the borrower has made a claim with respect to
the institutions's false certification or unauthorized
payment with any third party, such as the holder of a
performance bond or a tuition recovery program, and, if
so, the amount of any payment received by the borrower
or credited to the borrower's loan obligation.
``(H) Cooperation with the secretary.--The borrower
shall state that the borrower--
``(i) agrees to provide to the Secretary upon
request other documentation reasonably
available to the borrower that demonstrates
that the borrower meets the qualifications for
discharge under this subsection; and
``(ii) agrees to cooperate with the Secretary
in enforcement actions and to transfer any
right to recovery against a third party to the
Secretary.
``(8) Borrower qualifications for an unpaid refund
discharge.--To receive an unpaid refund discharge of a portion
of a loan under this subsection, a borrower shall submit to the
holder or guaranty agency a written application--
``(A) that requests the information required to
calculate the amount of the discharge;
``(B) that the borrower signs for the purpose of
swearing to the accuracy of the information;
``(C) that is made by the borrower under penalty of
perjury, and that may or may not be notarized;
``(D) under which the borrower states--
``(i) that the borrower--
``(I) received, on or after January
1, 1986, the proceeds of a loan, in
whole or in part, made, insured, or
guaranteed under this title to attend
an institution of higher education;
``(II) did not attend, withdrew, or
was terminated from the institution
within a timeframe that entitled the
borrower to a refund; and
``(III) did not receive the benefit
of a refund to which the borrower was
entitled either from the institution or
from a third party, such as the holder
of a performance bond or a tuition
recovery program;
``(ii) whether the borrower has any other
application for discharge pending for this
loan; and
``(iii) that the borrower--
``(I) agrees to provide to the
Secretary upon request other
documentation reasonably available to
the borrower that demonstrates that the
borrower meets the qualifications for
discharge under this subsection; and
``(II) agrees to cooperate with the
Secretary in enforcement actions and to
transfer any right to recovery against
a third party to the Secretary.''.
PART C--FEDERAL WORK-STUDY PROGRAMS
SECTION 441. PURPOSE; AUTHORIZATION OF APPROPRIATIONS.
Section 441 (20 U.S.C. 1087-51) is amended--
(1) in subsection (a)--
(A) by striking ``part-time'' and inserting ``paid'';
(B) by striking ``, graduate, or professional''; and
(C) by striking ``community service'' and inserting
``work-based learning'';
(2) in subsection (b), by striking ``part, such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.'' and inserting ``part, $1,722,858,000
for fiscal year 2019 and each of the 5 succeeding fiscal
years.''; and
(3) by amending subsection (c) to read as follows:
``(c) Work-Based Learning.--For purposes of this part, the term
`work-based learning' means paid interactions with industry or
community professionals in real workplace settings that foster in-
depth, first-hand engagement with the tasks required of a given career
field, that are aligned to a student's field of study.''.
SEC. 442. ALLOCATION FORMULA.
Section 442 (20 U.S.C. 1087-52) is amended to read as follows:
``SEC. 442. ALLOCATION OF FUNDS.
``(a) Reservations.--
``(1) Reservation for improved institutions.--
``(A) Amount of reservation for improved
institutions.--For a fiscal year in which the amount
appropriated under section 441(b) exceeds $700,000,000,
the Secretary shall--
``(i) reserve the lesser of--
``(I) an amount equal to 20 percent
of the amount by which the amount
appropriated under section 441(b)
exceeds $700,000,000; or
``(II) $150,000,000; and
``(ii) allocate the amount reserved under
clause (i) to each improved institution in an
amount--
``(I) that bears the same proportion
to the amount reserved under clause (i)
as the total amount of all Federal Pell
Grant funds awarded at the improved
institution for the second preceding
fiscal year bears to the total amount
of Federal Pell Grant funds awarded at
improved institutions participating
under this part for the second
preceding fiscal year; and
``(II) is not--
``(aa) less than $10,000; or
``(bb) greater than
$1,500,000.
``(B) Improved institution described.--For purposes
of this paragraph, an improved institution is an
institution that, on the date the Secretary makes an
allocation under subparagraph (A)(ii) is, with respect
to--
``(i) the completion rate or graduation rate
of Federal Pell Grant recipients at the
institution, in the top 10 percent of--
``(I) if the institution is an
institution described in any of clauses
(iv) through (ix) of section
132(d)(1)(B), all such institutions
participating under this part for the
preceding fiscal year; or
``(II) if the institution is an
institution described in any of clauses
(i) through (iii) of section
132(d)(1)(B), all such institutions
participating under this part for the
preceding fiscal year; or
``(ii) the improvement of the completion rate
or graduation rate between the preceding fiscal
year and such date, in the top 10 percent of
the institutions described in clause (i).
``(C) Completion rate or graduation rate.--For
purposes of determining the completion rate or
graduation rate under this section, a Federal Pell
Grant recipient shall be counted as a completor or
graduate if, within the normal time for completion of
or graduation from the program, the student has
completed or graduated from the program, or enrolled in
any program of an institution participating in any
program under this title for which the prior program
provides substantial preparation.
``(D) Reallocation of returned amount.--If an
institution returns to the Secretary any portion of the
sums allocated to such institution under this paragraph
for any fiscal year, the Secretary shall reallot such
excess to improved institutions on the same basis as
under subparagraph (A)(ii)(I).
``(2) Reservation for work colleges.--From the amounts
appropriated under section 441(b), the Secretary shall reserve
to carry out section 448 such amounts as may be necessary for
fiscal year 2019 and each of the 5 succeeding fiscal years.
``(b) Allocation Formula for Fiscal Years 2019 Through 2023.--
``(1) In general.--From the amount appropriated under section
441(b) for a fiscal year and remaining after the Secretary
reserves funds under subsection (a), the Secretary shall
allocate to each institution--
``(A) for fiscal year 2019, an amount equal to the
greater of--
``(i) 90 percent of the amount the
institution received under this subsection and
subsection (a) for fiscal year 2018, as such
subsections were in effect with respect to such
fiscal year (in this subparagraph referred to
as the `2018 amount for the institution'); or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(B) for fiscal year 2020, an amount equal to the
greater of--
``(i) 80 percent of the 2018 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(C) for fiscal year 2021, an amount equal to the
greater of--
``(i) 60 percent of the 2018 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(D) for fiscal year 2022, an amount equal to the
greater of--
``(i) 40 percent of the 2018 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
and
``(E) for fiscal year 2023, an amount equal to the
greater of--
``(i) 20 percent of the 2018 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d).
``(2) Ratable reduction.--
``(A) In general.--If the amount appropriated under
section 441(b) for a fiscal year and remaining after
the Secretary reserves funds under subsection (a) is
less than the amount required to be allocated to the
institutions under this subsection, then the amount of
the allocation to each institution shall be ratably
reduced.
``(B) Additional appropriations.--If the amounts
allocated to each institution are ratably reduced under
subparagraph (A) for a fiscal year and additional
amounts are appropriated for such fiscal year, the
amount allocated to each institution from the
additional amounts shall be increased on the same basis
as the amounts under subparagraph (A) were reduced
(until each institution receives the amount required to
be allocated under this subsection).
``(c) Allocation Formula for Fiscal Year 2024 and Each Succeeding
Fiscal Year.--From the amount appropriated under section 441(b) for
fiscal year 2024 and each succeeding fiscal year and remaining after
the Secretary reserves funds under subsection (a), the Secretary shall
allocate to each institution the fair share amount for the institution
determined under subsection (d).
``(d) Determination of Fair Share Amount.--
``(1) In general.--The fair share amount for an institution
for a fiscal year shall be equal to the sum of the following:
``(A) An amount equal to 50 percent of the amount
that bears the same proportion to the available
appropriated amount for such fiscal year as the total
amount of Federal Pell Grant funds disbursed at the
institution for the preceding fiscal year bears to the
total amount of Federal Pell Grant funds awarded at all
institutions participating under this part for the
preceding fiscal year.
``(B) An amount equal to 50 percent of the amount
that bears the same proportion to the available
appropriated amount for such fiscal year as the total
amount of the undergraduate student need at the
institution for the preceding fiscal year bears to the
total amount of undergraduate student need at all
institutions participating under this part for the
preceding fiscal year.
``(2) Definitions.--In this subsection:
``(A) Available appropriated amount.--The term
`available appropriated amount' means--
``(i) the amount appropriated under section
441(b) for a fiscal year, minus
``(ii) the amounts reserved under subsection
(a) for such fiscal year.
``(B) Average cost of attendance.--The term `average
cost of attendance' means, with respect to an
institution, the average of the attendance costs for a
fiscal year for students which shall include--
``(i) tuition and fees, computed on the basis
of information reported by the institution to
the Secretary, which shall include--
``(I) total revenue received by the
institution from undergraduate tuition
and fees for the second year preceding
the year for which it is applying for
an allocation; and
``(II) the institution's enrollment
for such second preceding year;
``(ii) standard living expenses equal to 150
percent of the difference between the income
protection allowance for a family of 5 with 1
in college and the income protection allowance
for a family of 6 with 1 in college for a
single independent student; and
``(iii) books and supplies, in an amount not
exceeding $800.
``(C) Undergraduate student need.--The term
`undergraduate student need' means, with respect to an
undergraduate student for a fiscal year, the lesser of
the following:
``(i) The total of the amount equal to
(except the amount computed by this clause
shall not be less than zero)--
``(I) the average cost of attendance
for the fiscal year, minus
``(II) the total amount of each such
undergraduate student's expected family
contribution (computed in accordance
with part F of this title) for the
preceding fiscal year.
``(ii) $12,500.
``(e) Return of Surplus Allocated Funds.--
``(1) Amount returned.--If an institution returns more than
10 percent of its allocation under subsection (d), the
institution's allocation for the next fiscal year shall be
reduced by the amount returned.
``(2) Waiver.--The Secretary may waive this paragraph for a
specific institution if the Secretary finds that enforcing this
paragraph would be contrary to the interest of the program.
``(f) Filing Deadlines.--The Secretary shall, from time to time, set
dates before which institutions must file applications for allocations
under this part.''.
SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
Section 443 (20 U.S.C. 1087-53) is amended--
(1) in subsection (b)--
(A) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``part-time'';
(B) in paragraph (2), by striking ``except that--''
and all that follows through ``an institution may use a
portion'' and inserting ``except that an institution
may use a portion'';
(C) in paragraph (3), by inserting ``undergraduate''
after ``only'';
(D) in paragraph (4), by striking ``300'' and
inserting ``500'';
(E) in paragraph (5)--
(i) by striking ``shall not exceed 75
percent'' and inserting ``shall not exceed 75
percent in the first year after the date of the
enactment of PROSPER Act, 65 percent in the
first succeeding fiscal year, 60 percent in the
second succeeding fiscal year, 55 percent in
the third succeeding fiscal year, and 50
percent each succeeding fiscal year'';
(ii) by striking subparagraph (A);
(iii) in subparagraph (B)--
(I) by striking ``75'' and inserting
``50''; and
(II) by striking the semicolon and
inserting ``; and'';
(iv) by redesignating subparagraph (B) as
subparagraph (A); and
(v) by adding at the end the following:
``(B) the Federal share may equal 100 percent with
respect to funds received under section
442(a)(1)(A);'';
(F) in paragraph (8)--
(i) in subparagraph (A)(i), by striking
``vocational'' and inserting ``career''; and
(ii) in subparagraph (B), by striking
``community service'' and inserting ``work-
based learning'';
(G) in paragraph (10), by striking ``; and'' and
inserting a semicolon;
(H) in paragraph (11), by striking the period at the
end and inserting a semicolon; and
(I) by adding at the end the following:
``(12) provide assurances that the institution will collect
data from students and employers such that the employment made
available from funds under this part will, to the maximum
extent practicable, complement and reinforce the educational
goals or career goals of each student receiving assistance
under this part; and
``(13) provide assurances that if the institution receives
funds under section 442(a)(1)(A), such institution shall--
``(A) use such funds to compensate students
participating in the work-study program; and
``(B) prioritize the awarding of such funds to
students--
``(i) who demonstrate exceptional need; or
``(ii) who are employed in work-based
learning opportunities through the work-study
program.'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``program of part-time
employment'' and inserting the following:
``program--
``(A) of employment''; and
(ii) by inserting ``or'' after ``subsection
(b)(3);''; and
(iii) by adding at the end the following:
``(B) of full-time employment of its cooperative
education students in work for a private for-profit
organization under an arrangement between the
institution and such organization that complies with
the requirements of subparagraphs (A) through (D) of
subsection (b)(1) of this section and subsection (b)(4)
of this section;'';
(B) by striking paragraph (2);
(C) in paragraph (4), by inserting ``and complement
and reinforce the educational goals or career goals of
each student receiving assistance under this part''
after ``relevant''; and
(D) by redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively; and
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``In any academic year to
which subsection (b)(2)(A) applies, an
institution shall ensure that'' and inserting
``An institution may use the'' ; and
(ii) by striking ``are used''; and
(B) in paragraph (3), by striking ``may exceed 75
percent'' and inserting ``shall not exceed 50
percent''.
SEC. 444. FLEXIBLE USE OF FUNDS.
Section 445(a) (20 U.S.C. 1087-55(a)) is amended--
(1) in paragraph (2), by striking ``in the same State'' and
inserting ``described under section 442(a)(1)(B)''; and
(2) by adding at the end the following new paragraph:
``(3) In addition to the carry-over sums authorized under paragraph
(1) of this section, an institution may permit a student who completed
the previous award period to continue to earn unearned portions of the
student's work-study award from that previous year if--
``(A) any reduction in the student's need upon which the
award was based is accounted for in the remaining portion; and
``(B) the student is currently employed in a work-based
learning position.''.
SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS.
Section 446 (20 U.S.C. 1087-56) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``10 percent or $75,000'' and
inserting ``20 percent or $150,000''; and
(ii) by striking ``, including community
service jobs,'';
(B) in paragraph (2), by striking ``vocational'' and
inserting ``career''; and
(C) by adding at the end the following:
``(3) An institution may use a portion of the funds expended under
this section to identify and expand opportunities for apprenticeships
for students and to assist employers in developing jobs that are part
of apprenticeship programs.''; and
(2) in subsection (b)--
(A) by striking paragraph (2);
(B) by redesignating paragraphs (3) through (6) as
paragraphs (4) through (7), respectively; and
(C) by inserting before paragraph (4), as so
redesignated, the following:
``(2) provide satisfactory assurance that the institution
will prioritize placing students with the lowest expected
family contribution and Federal work-study recipients in jobs
located and developed under this section;
``(3) provide a satisfactory assurance that the institution
will locate and develop work-based learning opportunities
through the job location development programs;''; and
(D) in paragraph (7), as so redesignated, by striking
the period and inserting ``, including--
``(A) the number of students employed in work-based
learning opportunities through such program;
``(B) the number of students demonstrating
exceptional need and employed in a work-study program
through such program; and
``(C) the number of students demonstrating
exceptional need and employed in work-based learning
opportunities through such program.''.
SEC. 446. COMMUNITY SERVICE.
Section 447 (20 U.S.C. 1087-57) is repealed.
SEC. 447. WORK COLLEGES.
Section 448 (20 U.S.C. 1087-58) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``and part E''; and
(ii) by striking ``appropriated'' and
inserting ``allocated'';
(B) in paragraph (2), by striking ``appropriated
pursuant to'' and inserting ``allocated under''; and
(2) in subsection (c), by striking ``authorized by'' and
inserting ``allocated under'';
(3) in subsection (e)(1)--
(A) in subparagraph (C), by striking ``; and'' and
inserting a semicolon; and
(B) by adding at the end the following:
``(E) has administered Federal work-study for at
least 2 years; and''; and
(4) by amending subsection (f) to read as follows:
``(f) Allocation of Reserved Funds.--
``(1) In general.--Subject to paragraph (2), from the amount
reserved under section 442(a)(2) for a fiscal year to carry out
this section, the Secretary shall allocate to each work college
that submits an application under subsection (c) an amount
equal to the amount that bears the same proportion to the
amount appropriated for such fiscal year as the number of
students eligible for employment under a work-study program
under this part who are enrolled at the work college bears to
the total number of students eligible for employment under a
work-study program under this part who are enrolled at all work
colleges.
``(2) Reallotment of unmatched funds.--If a work college is
unable to match funds received under paragraph (1) in
accordance with subsection (d), any unmatched funds shall be
returned to the Secretary and the Secretary shall reallot such
funds on the same basis as funds are allocated under paragraph
(1).''.
PART D--FEDERAL DIRECT STUDENT LOAN PROGRAM
SEC. 451. TERMINATION OF FEDERAL DIRECT LOAN PROGRAM UNDER PART D AND
OTHER CONFORMING AMENDMENTS.
(a) Appropriations.--Section 451 (20 U.S.C. 1087a) is amended--
(1) in subsection (a), by adding at the end the following:
``No sums may be expended after September 30, 2024, with
respect to loans under this part for which the first
disbursement is after such date.''; and
(2) by adding at the end, the following:
``(c) Termination of Authority to Make New Loans.--Notwithstanding
subsection (a) or any other provision of law--
``(1) no new loans may be made under this part after
September 30, 2024; and
``(2) no funds are authorized to be appropriated, or may be
expended, under this Act, or any other Act to make loans under
this part for which the first disbursement is after September
30, 2024,
except as expressly authorized by an Act of Congress enacted after the
date of enactment of the PROSPER Act.
``(d) Student Eligibility Beginning With Award Year 2019.--
``(1) New borrowers.--No loan may be made under this part to
a new borrower for which the first disbursement is after June
30, 2019.
``(2) Borrowers with outstanding balances.--Subject to
paragraph (3), with respect to a borrower who, as of July 1,
2019, has an outstanding balance of principal or interest owing
on a loan made under this part, such borrower may--
``(A) in the case of such a loan made to the borrower
for enrollment in a program of undergraduate education,
borrow loans made under this part for any program of
undergraduate education through the close of September
30, 2024;
``(B) in the case of such a loan made to the borrower
for enrollment in a program of graduate or professional
education, borrow loans made under this part for any
program of graduate or professional education through
the close of September 30, 2024; and
``(C) in the case of such a loan made to the borrower
on behalf of a dependent student for the student's
enrollment in a program of undergraduate education,
borrow loans made under this part on behalf of such
student through the close of September 30, 2024.
``(3) Loss of eligibility.--A borrower described in paragraph
(2) who borrows a loan made under part E for which the first
disbursement is made on or after July 1, 2019, shall lose the
borrower's eligibility to borrow loans made under this part in
accordance with paragraph (2).''.
(b) Perkins Loan Conforming Amendment.--Section 453(c)(2)(A) (20
U.S.C. 1087c(c)(2)(A)) is amended by inserting ``, as in effect on the
day before the date of enactment of the PROSPER Act and pursuant to
section 461(a),'' after ``part E'';
(c) Applicable Interest Rates and Other Terms and Conditions.--
Section 455 (20 U.S.C. 1087e) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``, and first
disbursed before October 1, 2024,'' after ``under this
part'';
(B) in paragraph (2), by inserting ``, and first
disbursed before October 1, 2024,'' after ``under this
part'';
(2) in subsection (b)(8)--
(A) in the paragraph heading, by inserting ``and
before october 1, 2024'' after ``2013'';
(B) in subparagraph (A), by inserting ``and before
October 1, 2024,'' after ``July 1, 2013,'';
(C) in subparagraph (B), by inserting ``and before
October 1, 2024,'' after ``July 1, 2013,'';
(D) in subparagraph (C), by inserting ``and before
October 1, 2024,'' after ``July 1, 2013,''; and
(E) in subparagraph (D), by inserting ``and before
October 1, 2024,'' after ``July 1, 2013,'';
(3) in subsection (c)(2)(E), by inserting ``, and before
October 1, 2024'' after ``July 1, 2010'';
(4) in subsection (e)(7), in the matter preceding
subparagraph (A), by inserting ``, as in effect on the day
before the date of enactment of the PROSPER Act and pursuant to
section 461(a)'' after ``part E''; and
(5) in subsection (g)--
(A) by inserting ``, and first disbursed before
October 1, 2024,'' after ``under this part'' the first
place it appears; and
(B) by adding at the end the following: ``The
authority to make consolidation loans under this
subsection expires at the close of September 30, 2024.
No loan may be made under this subsection for which the
disbursement is on or after October 1, 2024.''; and
(6) in subsection (o)--
(A) in paragraph (1), by inserting ``, and before
October 1, 2024'' after ``October 1, 2008''; and
(B) in paragraph (2)--
(i) by inserting ``and before October 1,
2024,'' after ``October 1, 2008,''; and
(ii) by inserting ``, and before October 1,
2024'' before the period at the end.
SEC. 452. BORROWER DEFENSES.
Section 455(h) (20 U.S.C. 1087e(h)) is amended to read as follows:
``(h) Borrower Defenses.--
``(1) In general.--In any proceeding to collect on a loan
made under this part on or after July 1, 2018 to a borrower,
the Secretary shall abide by the following:
``(A) In no event may the borrower recover any amount
previously collected or be freed of amounts owed to the
Secretary without submitting an individually-filed
application for approval.
``(B) In no event may the borrower recover amounts
previously collected by the Secretary, in any action
arising from or relating to a loan made under this
part, in an amount in excess of the amount that has
been paid by the borrower on such loan.
``(C) In no event may the borrower submit an
application to recover amounts previously collected by
the Secretary later than 3 years after the misconduct
or breach of contract on behalf of the institution
takes place that gives rise to the borrower to assert a
defense to repayment of the loan.
``(D) In no event may anyone other than an
administrative law judge or its equivalent preside over
hearings of any kind related to applications submitted
under this subsection.
``(E) In no event may the Secretary approve or
disapprove the borrower's application under this
subsection without allowing for the equal consideration
of evidence and arguments presented by a representative
on behalf of the student or students and a
representative on behalf of the institution, if either
such party makes a request.
``(F) In no event may the Secretary withhold from an
institution any materials, facts, or evidence used when
processing an application submitted by the borrower.
``(G) In no event may the borrower of a loan made,
insured or guaranteed under this title (other than a
loan made under this part or a Federal ONE Loan) submit
an application under this subsection without
consolidating the loans of the borrower into a Federal
ONE Consolidation Loan.
``(2) Borrower application requirements.--
``(A) In general.--An application submitted by a
borrower under this subsection to the Secretary shall--
``(i) certify the borrower's receipt of loan
proceeds, in whole or in part, to attend the
named institution of higher education;
``(ii) provide evidence described in
subparagraph (B) that supports a borrower
defense to repayment of the loan; and
``(iii) indicate whether the borrower has
made a claim with respect to the information
underlying the borrower defense with any third
party and, if so, the amount of any payment
received by the borrower or credited to the
borrower's loan obligation.
``(B) Evidence.--The borrower has a borrower defense
if--
``(i) the borrower, whether as an individual
or as a member of a class, or a governmental
agency, has obtained against the institution of
higher education a nondefault, favorable
contested judgment based on State or Federal
law in a court or administrative tribunal of
competent jurisdiction;
``(ii) the institution of higher education
for which the borrower received the loan made
under this part failed to perform its
obligations under the terms of a contract with
the student; or
``(iii) the institution of higher education
described in clause (ii) or any of its
representatives engaged directly in marketing,
recruitment or admissions activities, or any
other institution of higher education,
organization, or person with whom such
institution has an agreement to provide
educational programs, or to provide marketing,
advertising, recruiting, or admissions
services, made a substantial misrepresentation
within the meaning of section
487(c)(3)(B)(i)(II) that the borrower
reasonably relied on when the borrower decided
to attend, or to continue attending, such
institution.
``(3) Secretarial notification requirements.--
``(A) Receipt of application.--Upon receipt of a
borrower's application, the Secretary--
``(i) if the borrower is not in default on
the loan for which a borrower defense has been
asserted, shall grant a forbearance and notify
the borrower of the option to decline the
forbearance and to continue making payments on
the loan;
``(ii) if the borrower is in default on the
loan for which a borrower defense has been
asserted--
``(I) shall suspend collection
activity on the loan until the
Secretary issues a decision on the
borrower's claim;
``(II) shall notify the borrower of
the suspension of collection activity
and explain that collection activity
will resume if the Secretary determines
that the borrower does not qualify for
a full discharge; and
``(III) shall notify the borrower of
the option to continue making payments
under a rehabilitation agreement or
other repayment agreement on the
defaulted loan; and
``(iii) shall to the extent possible, notify
the institutions against which the application
is filed, which notification shall include--
``(I) the reasons that the
application has been filed; and
``(II) the amount of relief
requested.
``(B) Approved application.--If a borrower's
application is approved in full or in part, the
Secretary shall--
``(i) notify the borrower and the institution
in writing of that determination and of the
relief provided; and
``(ii) inform the institution of the
opportunity to request a one-time
reconsideration of the claim in the application
if new evidence that was not previously
provided can be identified.
``(C) Application not approved.--If a borrower's
application is not approved in full or in part, the
Secretary--
``(i) shall notify the borrower and the
institution of the reasons for the denial, the
evidence that was relied upon, any portion of
the loan that is due and payable to the
Secretary, whether the Secretary will reimburse
any amounts previously collected, and inform
the borrower that the loan will return to its
status prior to the borrower's submission of
the application; and
``(ii) shall inform the borrower of the
opportunity to request a one-time
reconsideration of the claim in the application
if new evidence that was not previously
provided can be identified.
``(D) Consolidation.--During a proceeding for an
individual borrower, the Secretary may consolidate
individually-filed applications that have common facts
and claims and resolve the borrowers' borrower defense
claims for faster processing.
``(E) New evidence defined.--For purposes of this
paragraph, the term `new evidence' means relevant
evidence that the borrower or the institution did not
previously provide and that was not identified in the
final decision as evidence that was relied upon for the
final decision. If accepted for reconsideration by the
Secretary, the Secretary shall follow the procedure
under this paragraph.
``(F) Notification.--After a borrower submits an
application, the Secretary shall include in the
notification to the borrower--
``(i) the actions, including deadlines and
document requests, that will be taken by the
Secretary when processing an application by the
borrower; and
``(ii) that the final action by the Secretary
shall be available for review under subchapter
II of chapter 5, and chapter 7, of title 5,
United States Code (commonly known as the
`Administrative Procedure Act').
``(G) Timely approval process.--During a proceeding
for an individual borrower, the Secretary shall process
a submitted application and notify the borrower of the
final determination in a manner that is timely and
efficient.
``(H) Report.--Not later than two years after the
date of enactment of the PROSPER Act, the Secretary
shall submit to the authorizing committees a report
that includes--
``(i) the established policies and procedures
for processing applications;
``(ii) the established policies and
procedures for approving an application;
``(iii) the established policies and
procedures for denying an application;
``(iv) the method used to calculate the
amount and type of relief to be awarded to
borrowers who submit an application; and
``(v) the established timeframes for the
policies and procedures identified in clauses
(i) through (iii).
``(4) Calculation of relief.--The Secretary shall determine
the appropriate method for calculating the amount of relief to
be awarded to a borrower as a result of a proceeding described
in this subsection based on the materials, facts, and evidence
presented during the proceeding.
``(5) Further relief.--The Secretary may afford the borrower
such further relief as the Secretary determines is appropriate
under the circumstances, but which shall not exceed the
following:
``(A) Reimbursing the borrower for amounts paid
toward the loan voluntarily or through enforced
collection.
``(B) Restoring eligibility for assistance under this
title after determining that the borrower is not in
default on the loan.
``(C) Updating reports to consumer reporting agencies
to which the Secretary previously made adverse credit
reports with regard to a loan made under this part
after July 1, 2018.
``(6) Recovery.--
``(A) In general.--The Secretary may initiate an
appropriate proceeding to require the institution of
higher education whose act or omission resulted in the
borrower's successful defense against repayment of a
loan made under this part to pay to the Secretary the
amount of the loan to which the defense applies not
later than 3 years from the end of the last award year
in which the student attended the institution.
``(B) Notice.--The Secretary may initiate a
proceeding to collect at any time if the institution
received notice of the claim before the end of the
later of the periods described in subparagraph (A). For
purposes of this subparagraph, notice includes receipt
of--
``(i) actual notice from the borrower, from a
representative of the borrower, or from the
Department;
``(ii) a class action complaint asserting
relief for a class that may include the
borrower; or
``(iii) written notice, including a civil
investigative demand or other written demand
for information, from a Federal or State agency
that has power to initiate an investigation
into conduct of the institution of higher
education relating to specific programs,
periods, or practices that may have affected
the borrower.''.
SEC. 453. PLAIN LANGUAGE DISCLOSURE FORM.
(a) Plain Language Disclosure Form.--Section 455(p) (20 U.S.C.
1087e(p)) is amended to read as follows:
``(p) Disclosures.--
``(1) In general.--The Secretary shall, with respect to loans
under this part and in accordance with such regulations as the
Secretary shall prescribe, comply with each of the requirements
under section 433 that apply to a lender with respect to a loan
under part B.
``(2) Plain language disclosure form.--
``(A) Development and issuance of form.--Not later
than 24 months after the date of the enactment of this
paragraph, the Secretary shall, based on consumer
testing, develop and issue a model form to be known as
the `Plain Language Disclosure Form' that shall be used
by the Secretary to comply with paragraph (1).
``(B) Format.--The Secretary shall ensure that the
Plain Language Disclosure Form--
``(i) enables borrowers to easily identify
the information required to be disclosed under
section 433(a) with respect to a loan, with
emphasis on the loan terms determined by the
Secretary, based on consumer testing, to be
critical to understanding the total costs of
the loan and the estimated monthly repayment;
``(ii) has a clear format and design,
including easily readable font; and
``(iii) is as succinct as practicable.
``(C) Consultation.--In developing Plain Language
Disclosure Form, the Secretary shall, as appropriate,
consult with--
``(i) the Federal Reserve Board;
``(ii) borrowers of loans under this part;
and
``(iii) other organizations involved in the
provision of financial assistance to students,
as identified by the Secretary.
``(3) Electronic system for compliance.--In carrying out
paragraph (2), Secretary shall develop and implement an
electronic system to generate a Plain Language Disclosure Form
for each borrower that includes personalized information about
the borrower and the borrower's loans.
``(4) Limit on liability.--Nothing in this subsection shall
be construed to create a private right of action against the
Secretary with respect to the form or electronic system
developed under this paragraph.
``(5) Borrower signature required.--Beginning after the
issuance of the Plain Language Disclosure Form by the Secretary
under paragraph (2), a loan may not be issued to a borrower
under this part unless the borrower acknowledges to the
Secretary, in writing (which may include an electronic
signature), that the borrower has read the Plain Language
Disclosure Form for the loan concerned.
``(6) Consumer testing defined.--In this subsection, the term
`consumer testing' means the solicitation of feedback from
individuals, including borrowers and prospective borrowers of
loans under this part (as determined by the Secretary), about
the usefulness of different methods of disclosing material
terms of loans on the Plain Language Disclosure Form to
maximize borrowers' understanding of the terms and conditions
of such loans.''.
(b) Report to Congress.--Not later than 3 years after the date of the
enactment of this Act, the Secretary of Education shall submit to
Congress a report that includes a description of the methods and
procedures used to develop the Plain Language Disclosure Form required
under section 455(p)(2) of the Higher Education Act of 1965 (as added
by subsection (a) of this section).
SEC. 454. ADMINISTRATIVE EXPENSES.
Section 458(a) (20 U.S.C. 1087h)--
(1) in paragraph (3)--
(A) by striking ``2007'' each place it appears,
including in any headings, and inserting ``2019'';
(B) by striking ``2014'' each place it appears,
including in any headings, and inserting ``2024''; and
(C) by striking ``part and part B, including the
costs of the direct student loan programs under this
part'' and inserting ``title'';
(2) in paragraph (4), by striking ``2017'' and inserting
``2024'';
(3) in paragraph (6)--
(A) in subparagraph (B), by striking ``2010'' and
inserting ``2019''; and
(B) in subparagraph (C), by striking ``training'' and
inserting ``education'';
(4) by striking paragraph (7); and
(5) by redesignating paragraph (8) as paragraph (7).
SEC. 455. LOAN CANCELLATION FOR TEACHERS.
Section 460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is amended by
striking ``that qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who teach in such schools or
locations'' and inserting ``described in section 420N(b)(1)(B)''.
PART E--FEDERAL ONE LOANS
SEC. 461. WIND-DOWN OF FEDERAL PERKINS LOAN PROGRAM.
(a) In General.--Except as otherwise provided in this section and
notwithstanding section 462, the provisions of part E of title IV of
the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in
effect on the day before the date of enactment of this Act, are deemed
to be incorporated in this subsection as though set forth fully in this
subsection, and shall have the same force and effect as on such day.
(b) Close-out Audits.--
(1) In general.--In the case of an institution of higher
education that desires to have a final audit of its
participation under the program under part E of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in
effect pursuant to subsection (a), at the same time as its
annual financial and compliance audit under section 487(c) of
such Act (20 U.S.C. 1094(c)), such institution shall submit to
the Secretary a request, in writing, for such an arrangement
not later than 60 days after the institution terminates its
participation under such program.
(2) Termination of participation.--For purposes of this
subsection, an institution shall be considered to have
terminated its participation under the program described in
paragraph (1), if the institution--
(A)(i) has made a determination not to service and
collect student loans made available from funds under
part E of title IV of the Higher Education Act of 1965
(20 U.S.C. 1087aa et seq.), as in effect pursuant to
subsection (a); or
(ii) has completed the servicing and collection of
such student loans; and
(B) has completed the asset distribution required
under section 466(b) of the Higher Education Act of
1965 (20 U.S.C. 1087ff(b)), as in effect pursuant to
subsection (a).
(c) Collection of Interest on Certain Student Loans.--In the case of
an institution of higher education that, on or after October 1, 2006,
loaned an amount to its student loan fund established under part E of
title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et
seq.), as in effect pursuant to subsection (a), for the purpose of
making student loans from such fund, and that, before the date of
enactment of this Act, has repaid to itself the amount loaned to such
student loan fund, the institution shall collect any interest earned on
such student loans.
(d) Assignment of Loans to Secretary.--Notwithstanding the
requirements of section 463(a)(5) of the Higher Education Act of 1965
(20 U.S.C. 1087cc(a)(5)), as in effect pursuant to subsection (a), if
an institution of higher education determines not to service and
collect student loans made available from funds under part E of such
Act (20 U.S.C. 1087aa et seq.), as so in effect--
(1) the institution shall assign, during the repayment
period, any notes or evidence of obligations of student loans
made from such funds to the Secretary; and
(2) the Secretary shall deposit any sums collected on such
notes or obligations (less an amount not to exceed 30 percent
of any such sums collected to cover that Secretary's collection
costs) into the Treasury of the United States.
(e) Closed School Discharge.--The amendments made by section 428 to
section 437(c) of the Higher Education Act of 1965 (20 U.S.C. 1087),
relating to closed school discharge, shall apply with respect to any
loans discharged on or after the date of enactment of this Act under
section 464(g) of such Act (20 U.S.C. 10877dd(g)), as in effect
pursuant to subsection (a)).
SEC. 462. FEDERAL ONE LOAN PROGRAM.
Part E of title IV (20 U.S.C. 1087aa et seq.) is amended to read as
follows:
``PART E--FEDERAL ONE LOAN PROGRAM
``SEC. 461. PROGRAM AUTHORITY.
``(a) In General.--There are hereby made available, in accordance
with the provisions of this part, such sums as may be necessary to make
loans to all eligible students (and the eligible parents of such
students) in attendance at participating institutions of higher
education selected by the Secretary to enable such students to pursue
their courses of study at such institutions during the period beginning
July 1, 2019. Loans made under this part shall be made by participating
institutions that have agreements with the Secretary to originate
loans.
``(b) Designation.--The program established under this part shall be
referred to as the `Federal ONE Loan Program'.
``(c) ONE Loans.--Except as otherwise specified in this part, loans
made to borrowers under this part shall be known as `Federal ONE
Loans'.
``SEC. 462. FUNDS FOR THE ORIGINATION OF ONE LOANS.
``(a) In General.--The Secretary shall provide, on the basis of
eligibility of students at each participating institution, and parents
of such students, for such loans, funds for student and Parent Loans
under this part directly to an institution of higher education that has
an agreement with the Secretary under section 464(a) to participate in
the Federal ONE Loan Program under this part and that also has an
agreement with the Secretary under section 464(b) to originate loans
under this part.
``(b) Parallel Terms.--Subsections (b), (c), and (d) of section 452
shall apply to the loan program under this part in the same manner that
such subsections apply to the loan program under part D.
``SEC. 463. SELECTION OF INSTITUTIONS FOR PARTICIPATION AND
ORIGINATION.
``(a) General Authority.--The Secretary shall enter into agreements
pursuant to section 464(a) with institutions of higher education to
participate in the Federal ONE Loan Program under this part, and
agreements pursuant to section 464(b) with institutions of higher
education, to originate loans in such program, for academic years
beginning on or after July 1, 2019. Such agreements for the academic
year 2019-2020 shall, to the extent feasible, be entered into not later
than January 1, 2019.
``(b) Selection Criteria and Procedure.--The application and
selection procedure for an institution of higher education desiring to
participate in the loan program under this part shall be the
application and selection procedure described in section 453(b) for an
institution of higher education desiring to participate in the loan
program under part D.
``(c) Eligible Institutions.--The Secretary may not select an
institution of higher education for participation under this part
unless such institution is an eligible institution under section
487(a).
``SEC. 464. AGREEMENTS WITH INSTITUTIONS.
``(a) Participation Agreements.--An agreement with any institution of
higher education for participation in the Federal ONE Loan Program
under this part shall--
``(1) provide for the establishment and maintenance of a
direct student loan program at the institution under which the
institution will--
``(A) identify eligible students who seek student
financial assistance at such institution in accordance
with section 484;
``(B) provide a statement that certifies the
eligibility of any student to receive a loan under this
part that is not in excess of the annual or aggregate
limit applicable to such loan, except that the
institution may, in exceptional circumstances
identified by the Secretary pursuant to section
454(a)(1)(C), refuse to certify a statement that
permits a student to receive a loan under this part, if
the reason for such action is documented and provided
in written form to such student;
``(C) set forth a schedule for disbursement of the
proceeds of the loan in installments, consistent with
the requirements of section 465(a); and
``(D) provide timely and accurate information,
concerning the status of student borrowers (and
students on whose behalf parents borrow under this
part) while such students are in attendance at the
institution and concerning any new information of which
the institution becomes aware for such students (or
their parents) after such borrowers leave the
institution, to the Secretary for the servicing and
collecting of loans made under this part;
``(2) provide assurances that the institution will comply
with requirements established by the Secretary relating to
student loan information with respect to loans made under this
part;
``(3) provide that the institution accepts responsibility and
financial liability stemming from its failure to perform its
functions pursuant to the agreement;
``(4) provide for the implementation of a quality assurance
system, as established by the Secretary and developed in
consultation with institutions of higher education, to ensure
that the institution is complying with program requirements and
meeting program objectives; and
``(5) provide that the institution will not charge any fees
of any kind, however described, to student or parent borrowers
for origination activities or the provision of any information
necessary for a student or parent to receive a loan under this
part, or any benefits associated with such loan.
``(b) Origination.--An agreement with any institution of higher
education for the origination of loans under this part shall--
``(1) supplement the agreement entered into in accordance
with subsection (a);
``(2) include provisions established by the Secretary that
are similar to the participation agreement provisions described
in paragraphs (2), (3), (4), and (5) of subsection (a), as
modified to relate to the origination of loans by the
institution;
``(3) provide that the institution will originate loans to
eligible students and parents in accordance with this part; and
``(4) provide that the note or evidence of obligation on the
loan shall be the property of the Secretary.
``(c) Withdrawal Procedures.--
``(1) In general.--An institution of higher education
participating in the Federal ONE Loan Program under this part
may withdraw from the program by providing written notice to
the Secretary of the intent to withdraw not less than 60 days
before the intended date of withdrawal.
``(2) Date of withdrawal.--Except in cases in which the
Secretary and an institution of higher education agree to an
earlier date, the date of withdrawal from the Federal ONE Loan
Program under this part of an institution of higher education
shall be the later of--
``(A) 60 days after the institution submits the
notice required under paragraph (1); or
``(B) a date designated by the institution.
``SEC. 465. DISBURSEMENT OF STUDENT LOANS, LOAN LIMITS, INTEREST RATES,
AND LOAN FEES.
``(a) Requirements for Disbursement of Student Loans.--
``(1) Multiple disbursement required.--
``(A) Required disbursements.--The proceeds of any
loan made under this part that is made for any period
of enrollment shall be disbursed as follows:
``(i) The disbursement of the first
installment of proceeds shall, with respect to
any student other than a student described in
subparagraph (B)(i), be made not more than 30
days prior to the beginning of the period of
enrollment, and not later than 30 days after
the beginning of such period of enrollment.
``(ii) The disbursement of an installment of
proceeds shall be made in substantially equal
monthly or weekly installments over the period
of enrollment for which the loan was made,
except that installments may be unequal as
necessary to permit the institution to adjust
for unequal costs (which may include upfront
costs such as tuition and fees) incurred or
estimated financial assistance received by the
student, or based on the academic progress of
the student.
``(B) Disbursement of credit balances.--
``(i) Type of disbursement.--The credit
balances of any loan made under this part that
is made for any period of enrollment shall be
disbursed by--
``(I) an electronic transfer of funds
to the borrower's financial account;
``(II) a check for the amount payable
to, and requiring the endorsement of,
the borrower;
``(III) an access device in
accordance with clause (ii); or
``(IV) a cash payment for which the
institution obtains a receipt signed by
the borrower.
``(ii) Usage of access device.--An
institution may enter into an agreement with a
third-party servicer for the delivery of funds
awarded under this part in which the third-
party servicer provides the borrower with an
unvalidated access device for accessing credit
balances of any loan if--
``(I) the agreement provides that the
access device must bear a prominent
disclosure informing the borrower that
the borrower is not required to use
such access device and open such an
account in order to access the
student's funds under this part;
``(II) the agreement provides that
the consent of the borrower is obtained
before the access device is validated
to enable the student to access the
account;
``(III) the agreement provides for
the protection of the borrower against
fraud; and
``(IV) the institution documents that
it has conducted a reasonable due
diligence review before entering into
the agreement, and will conduct such a
review at least every two years to
ensure that--
``(aa) the fees applicable to
such account are, considered as
a whole, below prevailing
market rates; and
``(bb) the terms and
conditions of such account are
otherwise consistent with
prevailing market terms and
conditions.
``(C) First year students.--
``(i) In general.--The first installment of
the proceeds of any loan made under this part
that is made to a student borrower who is
entering the first year of a program of
undergraduate education, and who has not
previously obtained a loan under this part,
shall not (regardless of the amount of such
loan or the duration of the period of
enrollment) be presented by the institution of
higher education to the student for endorsement
until 30 days after the borrower begins a
course of study, but may be delivered to the
eligible institution prior to the end of that
30-day period.
``(ii) Exemption.--An institution of higher
education in which each educational program has
a loan repayment rate (as determined under
section 481B(c)) for the most recent fiscal
year for which data are available that is
greater than 60 percent shall be exempt from
the requirements of clause (i).
``(2) Withdrawing of succeeding disbursements.--
``(A) Withdrawing students.--In the case in which the
Secretary is informed by the borrower or the
institution that the borrower has ceased to be enrolled
before the disbursement of the second or any succeeding
installment, the Secretary shall withhold such
disbursement. Any disbursement which is so withheld
shall be credited to the borrower's loan and treated as
a prepayment on the principal of the loan.
``(B) Students receiving over-awards.--If the sum of
a disbursement for any borrower and the other financial
aid obtained by borrower exceeds the amount of
assistance for which the borrower is eligible under
this title, the institution the borrower, or dependent
student, in the case of a parent borrower, is attending
shall withhold and return to the Secretary the portion
(or all) of such installment that exceeds such eligible
amount, except that overawards permitted pursuant to
section 443(b)(4) shall not be construed to be
overawards for purposes of this subparagraph. Any
portion (or all) of a disbursement installment which is
so returned shall be credited to the borrower's loan
and treated as a prepayment on the principal of the
loan.
``(3) Exclusion of consolidation and foreign study loans.--
The provisions of this subsection shall not apply in the case
of a Federal ONE Consolidation Loan, or a loan made to a
student to cover the cost of attendance in a program of study
abroad approved by the home eligible institution if each of the
educational programs of such home eligible institution has a
loan repayment rate (as calculated under section 481B(c)) for
the most recent fiscal year for which data are available of
greater than 70 percent.
``(4) Beginning of period of enrollment.--For purposes of
this subsection, a period of enrollment begins on the first day
that classes begin for the applicable period of enrollment.
``(b) Amount of Loan.--
``(1) In general.--The determination of the amount of a loan
disbursed by an eligible institution under this section shall
be the lesser of--
``(A) an amount that is equal to the estimated loan
amount, as determined by the institution by
calculating--
``(i) the estimated cost of attendance at the
institution; minus
``(ii)(I) any estimated financial assistance
reasonably available to such student, including
assistance that the student will receive from a
Federal grant, including a Federal Pell Grant,
a State grant, an institutional grant, or a
scholarship or grant from another source, that
is known to the institution at the time the
student's determination of need is made; and
``(II) in the case of a loan to a parent, the
amount of a loan awarded under this part to the
parent's child; or
``(B) the maximum Federal loan amount for which such
borrower is eligible in accordance with paragraph (2).
``(2) Loan limits.--
``(A) Annual limits.--Except as provided under
subparagraph (B), (C), or (D), the amount of loans made
under this part that an eligible student or parent
borrower may borrow for an academic year shall be as
follows:
``(i) Undergraduate students.--With respect
to enrollment in a program of undergraduate
education at an eligible institution--
``(I) in the case of a dependent
student--
``(aa) who has not
successfully completed the
first year of a program of
undergraduate education,
$7,500;
``(bb) who has successfully
completed such first year but
has not successfully completed
the remainder of a program of
undergraduate education,
$8,500; and
``(cc) who has successfully
completed the first and second
years of a program of
undergraduate education but has
not successfully completed the
remainder of such program,
$9,500;
``(II) in the case of an independent
student, or a dependent student whose
parents are unable to borrow a loan
under this part on behalf of such
student--
``(aa) who has not
successfully completed the
first year of a program of
undergraduate education,
$11,500;
``(bb) who has successfully
completed such first year but
has not successfully completed
the remainder of a program of
undergraduate education,
$12,500; and
``(cc) who has successfully
completed the first and second
years of a program of
undergraduate education but has
not successfully completed the
remainder of such program,
$14,500; and
``(III) in the case of a student who
is enrolled in a program of
undergraduate education that 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) or (II), as
applicable, as the length of such
program measured in semester,
trimester, quarter, or clock hours
bears to one academic year.
``(ii) Graduate or professional students.--In
the case of a graduate or professional student
for enrollment in a program of graduate or
professional education at an eligible
institution, $28,500.
``(iii) Parent borrowers.--In the case of a
parent borrowing a loan under this part on
behalf of a dependent student for the student's
enrollment in a program of undergraduate
education at an eligible institution, $12,500
per each such student.
``(iv) Coursework for undergraduate
enrollment.--With respect to enrollment in
coursework specified in section 484(b)(3)(B)
necessary for enrollment in an undergraduate
degree or certificate program--
``(I) in the case of a dependent
student, $2,625;
``(II) in the case of a parent
borrowing a loan under this part on
behalf of a dependent student for the
student's enrollment in such
coursework, $6,000; and
``(III) in the case an independent
student, or a dependent student whose
parents are unable to borrow a loan
under this part on behalf of such
student, $8,625.
``(v) Coursework for graduate or professional
enrollment or teacher employment.--With respect
to the enrollment of a student who has obtained
a baccalaureate degree in coursework specified
in section 484(b)(3)(B) necessary for
enrollment in a graduate or professional degree
or certificate program, or coursework specified
in section 484(b)(4)(B) necessary for a
professional credential or certification from a
State required for employment as a teacher in
an elementary or secondary school, in the case
of a student (without regard to whether the
student is a dependent student or dependent
student), $12,500.
``(B) Aggregate limits.--Except as provided under
subparagraph (C), (D), or (E), the maximum aggregate
amount of loans under this part and parts B and D that
an eligible student or parent borrower may borrow shall
be--
``(i) for enrollment in a program of
undergraduate education at an eligible
institution, including for enrollment in
coursework described in clause (iv) or (v) of
subparagraph (A)--
``(I) in the case of a dependent
student, $39,000;
``(II) in the case of an independent
student, or an dependent student whose
parents are unable to receive a loan
under this part on behalf of such
student, $60,250; and
``(III) in the case of a parent
borrowing a loan under this part on
behalf of a dependent student for the
student's enrollment in such a program,
$56,250 per each such student.
``(ii) in the case of a graduate or
professional student for enrollment in a
program of graduate or professional education
at an eligible institution, $150,000.
``(C) Application of limits to borrowers with part b
or d loans.--
``(i) Graduate or professional students.--In
the case of a graduate or professional student
who is not described in subparagraph (E) and
who has received loans made under part B or D
for enrollment in a graduate or professional
program at an eligible institution, the total
amount of which equal or exceed $28,500 as of
the time of disbursement, the student may
continue to borrow the amount of loans under
this part necessary to complete such program
without regard to the aggregate limit under
subparagraph (B)(ii), except that the--
``(I) amount of such loans shall not
exceed the annual limits under
subparagraph (A)(ii) for any academic
year beginning after June 30, 2019; and
``(II) authority to borrow loans in
accordance with this subclause shall
terminate at the end of the academic
year ending before September 30, 2024.
``(ii) Parent borrowers.--In the case of a
parent borrower who has received loans made
under part B or D on behalf of a dependent
student for the student's enrollment in a
program of undergraduate education at an
eligible institution, the total amount of which
equal or exceed $12,500 for such student as of
the time of disbursement, the parent borrower
may continue to borrow the amount of loans
under this part necessary for such student to
complete such program without regard to the
aggregate limit under subparagraph (B)(i)(III),
except that the--
``(I) amount of such loans shall not
exceed the annual limits under
subparagraph (A)(iii) for any academic
year beginning after June 30, 2019; and
``(II) the authority to borrow loans
in accordance with this subclause shall
terminate at the end of the academic
year ending before September 30, 2024.
``(D) Institutional determined limits.--
``(i) In general.--Notwithstanding any other
provision of this subsection, an eligible
institution (at the discretion of a financial
aid administrator at the institution) may
prorate or limit the amount of a loan any
student enrolled in a program of study at that
institution may borrow under this part for an
academic year--
``(I) if the institution, using the
most recently available data from the
Bureau of Labor Statistics for the
average starting salary in the region
in which the institution is located for
typical occupations pursued by
graduates of such program, can
reasonably demonstrate that student
debt levels are or would be excessive
for such program;
``(II) in a case in which the student
is enrolled on a less than full-time
basis or the student is enrolled for
less than the period of enrollment to
which the annual loan limit applies
under this subsection, based on the
student's enrollment status;
``(III) based on the credential level
(such as a degree, certificate, or
other recognized educational
credential) that the student would
attain upon completion of such program;
or
``(IV) based on the year of the
program for which the student is
seeking such loan.
``(ii) Application to all students.--Any
proration or limiting of loan amounts under
clause (i) shall be applied in the same manner
to all students enrolled in the institution or
program of study.
``(iii) Increases for individual students.--
Upon the request of a student whose loan amount
for an academic year has been prorated or
limited under clause (i), an eligible
institution (at the discretion of the financial
aid administrator at the institution) may
increase such loan amount to an amount not
exceeding the annual loan amount applicable to
such student under this subparagraph for such
academic year if such student demonstrates
special circumstances or exceptional need.
``(E) Increases for certain graduate or professional
students.--
``(i) Additional annual amounts.--Subject to
clause (iii) of this subparagraph, in addition
to the loan amount for an academic year
described in subparagraph (A)(ii)--
``(I) a graduate or professional
student who is enrolled in a program of
study to become a doctor of allopathic
medicine, doctor of osteopathic
medicine, doctor of dentistry, doctor
of veterinary medicine, doctor of
optometry, doctor of podiatric
medicine, doctor of naturopathic
medicine, or doctor of naturopathy may
borrow an additional--
``(aa) in the case of a
program with a 9-month academic
year, $20,000 for an academic
year; or
``(bb) in the case of a
program with a 12-month
academic year, $26,667 for an
academic year; and
``(II) a graduate or professional
student who is enrolled in a program of
study to become a doctor of pharmacy,
doctor of chiropractic medicine, or a
physician's assistant, or receive a
graduate degree in public health,
doctoral degree in clinical psychology,
or a masters or doctoral degree in
health administration may borrow an
additional--
``(aa) in the case of a
program with a 9-month academic
year, $12,500 for an academic
year; or
``(bb) in the case of a
program with a 12-month
academic year, $16,667 for an
academic year.
``(ii) Aggregate limit.--Subject to clause
(iii) of this subparagraph, the maximum
aggregate amount of loans under this part and
parts B and D that a student described in
clause (i) may borrow shall be $235,500.
``(iii) Limitation.--In the case of a
graduate or professional student described in
clause (i) of this subparagraph who has
received loans made under part B or D for
enrollment in a graduate or professional
program at an eligible institution, the total
amount of which equal or exceed $28,500 as of
the time of disbursement, the student may
continue to borrow the amount of loans under
this part necessary to complete such program
without regard to the aggregate limit under
clause (ii) of this subparagraph, except that
the--
``(I) amount of such loans shall not
exceed the annual limits under clause
(i) of this subparagraph for any
academic year beginning after June 30,
2019; and
``(II) authority to borrow loans in
accordance with this subclause shall
terminate at the end of the academic
year ending before September 30, 2024.
``(c) Interest Rate Provisions for Federal ONE Loans.--
``(1) Undergraduate one loans.--For Federal ONE Loans issued
to undergraduate students, the applicable rate of interest
shall, for loans disbursed during any 12-month period beginning
on July 1 and ending on June 30, be determined on the preceding
June 1 and be equal to the lesser of--
``(A) a rate equal to the high yield of the 10-year
Treasury note auctioned at the final auction held prior
to such June 1 plus 2.05 percent; or
``(B) 8.25 percent.
``(2) Graduate and professional one loans.--For Federal ONE
Loans issued to graduate or professional students, the
applicable rate of interest shall, for loans disbursed during
any 12-month period beginning on July 1 and ending on June 30,
be determined on the preceding June 1 and be equal to the
lesser of--
``(A) a rate equal to the high yield of the 10-year
Treasury note auctioned at the final auction held prior
to such June 1 plus 3.6 percent; or
``(B) 9.5 percent.
``(3) Parent one loans.--For Federal ONE Parent Loans, the
applicable rate of interest shall, for loans disbursed during
any 12-month period beginning on July 1 and ending on June 30,
be determined on the preceding June 1 and be equal to the
lesser of--
``(A) a rate equal to the high yield of the 10-year
Treasury note auctioned at the final auction held prior
to such June 1 plus 4.6 percent; or
``(B) 10.5 percent.
``(4) Consolidation loans.--Any Federal ONE Consolidation
Loan for which the application is received on or after July 1,
2019, shall bear interest at an annual rate on the unpaid
principal balance of the loan that is equal to the weighted
average of the interest rates on the loans consolidated,
rounded to the nearest higher one-eighth of one percent.
``(5) Publication.--The Secretary shall determine the
applicable rates of interest under this subsection after
consultation with the Secretary of the Treasury and shall
publish such rate in the Federal Register as soon as
practicable after the date of determination.
``(6) Rate.--The applicable rate of interest determined under
this subsection for a loan under this part shall be fixed for
the period of the loan.
``(d) Prohibition on Certain Repayment Incentives.--Notwithstanding
any other provision of this part, the Secretary is prohibited from
authorizing or providing any repayment incentive or subsidy not
otherwise authorized under this part to encourage on-time repayment of
a loan under this part, including any reduction in the interest paid by
a borrower of such a loan, except that the Secretary may provide for an
interest rate reduction of not more than 0.25 percentage points for a
borrower who agrees to have payments on such a loan automatically
debited from a bank account.
``(e) Loan Fee.--The Secretary shall not charge the borrower of a
loan made under this part an origination fee.
``(f) Armed Forces Student Loan Interest Payment Program.--
``(1) Authority.--Using funds received by transfer to the
Secretary under section 2174 of title 10, United States Code,
for the payment of interest on a loan made under this part to a
member of the Armed Forces, the Secretary shall pay the
interest on the loan as due for a period not in excess of 36
consecutive months. The Secretary may not pay interest on such
a loan out of any funds other than funds that have been so
transferred.
``(2) Deferment.--During the period in which the Secretary is
making payments on a loan under paragraph (1), the Secretary
shall grant the borrower administrative deferment, in the form
of a temporary cessation of all payments on the loan other than
the payments of interest on the loan that are made under that
paragraph.
``(g) No Accrual of Interest for Active Duty Service Members.--
``(1) In general .--Notwithstanding any other provision of
this part and in accordance with paragraphs (2) and (4),
interest shall not accrue for an eligible military borrower on
a loan made under this part.
``(2) Consolidation loans.--In the case of any consolidation
loan made under this part, interest shall not accrue pursuant
to this subsection only on such portion of such loan as was
used to repay a loan made under this part or a loan made under
part D for which the first disbursement was made on or after
October 1, 2008, and before July 1, 2019.
``(3) Eligible military borrower.--In this subsection, the
term `eligible military borrower' means an individual who--
``(A)(i) is serving on active duty during a war or
other military operation or national emergency; or
``(ii) is performing qualifying National Guard duty
during a war or other military operation or national
emergency; and
``(B) is serving in an area of hostilities in which
service qualifies for special pay under section 310 of
title 37, United States Code.
``(4) Limitation.--An individual who qualifies as an eligible
military borrower under this subsection may receive the benefit
of this subsection for not more than 60 months.
``SEC. 466. REPAYMENT.
``(a) Repayment Period; Commencement of Repayment.--
``(1) Repayment period.--
``(A) In general.--In the case of a Federal ONE Loan
(other than a Federal ONE Consolidation Loan or a
Federal ONE Parent Loan)--
``(i) subject to clause (ii), the repayment
period shall--
``(I) exclude any period of
authorized deferment under section
469A; and
``(II) begin the day after 6 months
after the date the student ceases to
carry at least one-half the normal
full-time academic workload (as
determined by the institution); and
``(ii) interest shall begin to accrue or be
paid by the borrower on the day the loan is
disbursed.
``(B) Consolidation and parent loans.--In the case of
a Federal ONE Consolidation Loan or a Federal ONE
Parent Loan, the repayment period shall--
``(i) exclude any period of authorized
deferment; and
``(ii) begin--
``(I) on the day the loan is
disbursed; or
``(II) if the loan is disbursed in
multiple installments, on the day of
the last such disbursement.
``(C) Active duty exclusion.--There shall be excluded
from the 6-month period that begins on the date on
which a student ceases to carry at least one-half the
normal full-time academic workload as described in
subparagraph (A) any period not to exceed 3 years
during which a borrower who is a member of a reserve
component of the Armed Forces named in section 10101 of
title 10, United States Code, is called or ordered to
active duty for a period of more than 30 days (as
defined in section 101(d)(2) of such title). Such
period of exclusion shall include the period necessary
to resume enrollment at the borrower's next available
regular enrollment period.
``(2) Payment of principal and interest.--
``(A) Commencement of repayment.--Repayment of
principal on loans made under this part shall begin at
the beginning of the repayment period described in
paragraph (1).
``(B) Capitalization of interest.--
``(i) In general.--Interest on loans made
under this part for which payments of principal
are not required during the 6-month period
described in paragraph (1)(A)(i)(II) or for
which payments are deferred under section 469A
shall--
``(I) be paid monthly or quarterly;
or
``(II) be added to the principal
amount of the loan only--
``(aa) when the loan enters
repayment;
``(bb) at the expiration of a
the 6-month period described in
paragraph (1)(A)(i)(II);
``(cc) at the expiration of a
period of deferment, unless
otherwise exempted; or
``(dd) when the borrower
defaults.
``(ii) Maximum aggregate limit.--Interest
capitalized shall not be deemed to exceed the
amount equal to the maximum aggregate limit of
the loan under section 465(b).
``(C) Notice.--Not less than 60 days, and again not
less than 30 days, prior to the anticipated
commencement of the repayment period for a Federal ONE
Loan, the Secretary shall provide notice to the
borrower--
``(i) that interest will accrue before
repayment begins;
``(ii) that interest will be added to the
principal amount of the loan in the cases
described in subparagraph (B)(i)(II); and
``(iii) of the borrower's option to begin
loan repayment prior to such repayment period.
``(b) Repayment Amount.--
``(1) In general.--The total of the payments by a borrower,
except as otherwise provided by an income-based repayment plan
under subsection (d), during any year of any repayment period
with respect to the aggregate amount of all loans made under
this part to the borrower shall not (unless the borrower and
the Secretary otherwise agree), be less than $600 or the
balance of all such loans (together with interest thereon),
whichever amount is less (but in no instance less than the
amount of interest due and payable, notwithstanding any
repayment plan described in subsection (c)).
``(2) Amortization.--
``(A) Interest rate.--The amount of the periodic
payment and the repayment schedule for a loan made
under this part shall be established by assuming an
interest rate equal to the applicable rate of interest
at the time of the first disbursement of the loan.
``(B) Adjustment to repayment amount.--The note or
other written evidence of a loan under this part shall
require that the amount of the periodic payment will be
adjusted annually in order to reflect adjustments in--
``(i) interest rates occurring as a
consequence of variable rate loans under parts
B or D paid in conjunction with Federal ONE
Loans under subsection (d)(1)(B)(i); or
``(ii) principal occurring as a consequence
of interest capitalization under subsection
(a)(2)(B).
``(c) Repayment Plans.--
``(1) Design and selection.--Not more than 6 months prior to
the date on which a borrower's first payment on a loan made
under this part is due, the Secretary shall offer the borrower
two plans for repayment of such loan, including principal and
interest on the loan. The borrower shall be entitled to
accelerate, without penalty, repayment on the borrower's loans
under this part. The borrower may choose--
``(A) a standard repayment plan with a fixed monthly
repayment amount paid over a fixed period of time, not
to exceed 10 years; or
``(B) an income-based repayment plan under subsection
(d).
``(2) Selection by secretary.--If a borrower of a loan made
under this part does not select a repayment plan described in
paragraph (1), the Secretary shall provide the borrower with
the repayment plan described in paragraph (1)(A).
``(3) Changes in selections.--
``(A) In general.--Subject to subparagraph (B), the
borrower of a loan made under this part may change the
borrower's selection of a repayment plan under
paragraph (1), or the Secretary's selection of a plan
for the borrower under paragraph (2), as the case may
be, under such terms and conditions as may be
established by the Secretary, except that the Secretary
may not establish any terms or conditions with respect
to whether a borrower may change the borrower's
repayment plan. Nothing in this subsection shall
prohibit the Secretary from encouraging struggling
borrowers from enrolling in the income-driven repayment
plan described in section 466(d).
``(B) Same repayment plan required.--All loans made
under this part to a borrower shall be repaid under the
same repayment plan under paragraph (1), except that
the borrower may repay a Federal ONE Parent Loan or an
Excepted Federal ONE Consolidation Loan (as defined in
subsection (d)(5)) separately from other loans made
under this part to the borrower.
``(4) Repayment after default.--The Secretary may require any
borrower who has defaulted on a loan made under this part to--
``(A) pay all reasonable collection costs associated
with such loan; and
``(B) repay the loan pursuant to the income-based
repayment plan under subsection (d).
``(5) Repayment period.--For purposes of calculating the
repayment period under this subsection, such period shall
commence at the time the first payment of principal is due from
the borrower.
``(6) Installments.-- Repayment of loans under this part
shall be in installments in accordance with the repayment plan
selected under paragraph (1) and commencing at the beginning of
the repayment period determined under paragraph (5).
``(d) Income-based Repayment Program.--
``(1) In general.--Notwithstanding any other provision of
this Act, the Secretary shall carry out a program under which--
``(A) a borrower of any loan made under this part
(other than a Federal ONE Parent Loan or an Excepted
Federal ONE Consolidation Loan) may elect to have the
borrower's aggregate monthly payment for all such
loans--
``(i) not to exceed the result obtained by
dividing by 12, 15 percent of the result
obtained by calculating, on at least an annual
basis, the amount by which--
``(I) the adjusted gross income of
the borrower or, if the borrower is
married and files a Federal income tax
return jointly with or separately from
the borrower's spouse, the adjusted
gross income of the borrower and the
borrower's spouse; 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)); and
``(ii) not to be less than $25;
``(B) the Secretary adjusts the calculated monthly
payment under subparagraph (A), if--
``(i) in addition to the loans described in
subparagraph (A), the borrower has an
outstanding loan made under part B or D (other
than an excepted parent loan or an excepted
consolidation loan, as such terms are defined
in section 493C(a)), by determining the
borrower's adjusted monthly payment by
multiplying--
``(I) the calculated monthly payment,
by
``(II) the percentage of the total
outstanding principal amount of the
borrower's loans described in the
matter preceding subclause (I), which
are described in subparagraph (A);
``(ii) the borrower and borrower's spouse
have loans described in subparagraph (A) and
outstanding loans under part B or D (other than
an excepted parent loan or an excepted
consolidation loan, as such terms are defined
in section 493C(a)) and have filed a joint or
separate Federal income tax return, in which
case the Secretary determines--
``(I) each borrower's percentage of
the couple's total outstanding amount
of principal on such loans;
``(II) the adjusted monthly payment
for each borrower by multiplying the
borrower's calculated monthly payment
by the percentage determined under
subclause (I) applicable to the
borrower; and
``(III) if the borrower's loans are
held by multiple holders, the
borrower's adjusted monthly payment for
loans described in subparagraph (A) by
multiplying the adjusted monthly
payment determined under subclause (II)
by the percentage of the total
outstanding principal amount of the
borrower's loans described in the
matter preceding subclause (I), which
are described in subparagraph (A);
``(C) 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;
``(D) any principal due and not paid under
subparagraph (C) shall be deferred;
``(E) any interest due and not paid under
subparagraph (C) shall be capitalized, 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 subparagraph
(G)(i);
``(F) the amount of time the borrower makes monthly
payments under subparagraph (A) may exceed 10 years;
``(G) if the borrower no longer wishes to continue
the election under this subsection, then--
``(i) the maximum monthly payment required to
be paid for all loans made to the borrower
under this part (other than a Federal ONE
Parent Loan or an Excepted Federal ONE
Consolidation Loan) shall not exceed the
monthly amount calculated under subsection
(c)(1)(A), based on a 10-year repayment period,
when the borrower first made the election
described in this subsection; and
``(ii) the amount of time the borrower is
permitted to repay such loans may exceed 10
years;
``(H) the Secretary shall cancel any outstanding
balance (other than an amount equal to the interest
accrued during any period of in-school deferment under
subparagraph (A), (B), or (F) of section 469A(b)(1))
due on all loans made under this part (other than a
Federal ONE Parent Loan or an Excepted Federal ONE
Consolidation Loan) to a borrower--
``(i) who, at any time, elected to
participate in income-based repayment under
subparagraph (A);
``(ii) whose final monthly payment for such
loans prior to the loan cancellation under this
subparagraph was made under such income-based
repayment; and
``(iii) who has repaid, pursuant to income-
based repayment under subparagraph (A), a
standard repayment plan under subsection
(c)(1)(A), or a combination--
``(I) an amount on such loans that is
equal to the total amount of principal
and interest that the borrower would
have repaid under a standard repayment
plan under subsection (c)(1)(A), based
on a 10-year repayment period, when the
borrower entered repayment on such
loans; and
``(II) the amount of interest that
accrues during a period of deferment
described in section 469A prior to the
completion of the repayment period
described in subclause (I) on the
portion of such loans remaining to be
repaid in accordance with such
subclause; and
``(I) a borrower who is repaying a loan made under
this part pursuant to income-based repayment under
subparagraph (A) may elect, at any time during the 10-
year period beginning on the date the borrower entered
repayment on the loan, to terminate repayment pursuant
to such income-based repayment and repay such loan
under the standard repayment plan.
``(2) Eligibility determinations.--
``(A) In general.--The Secretary shall establish
procedures for annual verification of a borrower's
annual income and the annual amount due on the total
amount of loans made under this part (other than a
Federal ONE Parent Loan or an Excepted Federal ONE
Consolidation Loan), and such other procedures as are
necessary to implement effectively income-based
repayment under this subsection, including the
procedures established with respect to section 493C.
``(B) Income information.--The Secretary may obtain
such information as is reasonably necessary regarding
the income of a borrower (and the borrower's spouse, if
applicable) of a loan made under this part that is, or
may be, repaid pursuant to income-based repayment under
this subsection, for the purpose of determining the
annual repayment obligation of the borrower. The
Secretary shall establish procedures for determining
the borrower's repayment obligation on that loan for
such year, and such other procedures as are necessary
to implement effectively the income-based repayment
under this subsection.
``(C) Borrower requirements.--A borrower who chooses
to repay a loan made under this part pursuant to
income-based repayment under this subsection, and--
``(i) for whom adjusted gross income is
available and reasonably reflects the
borrower's current income, shall, to the
maximum extent practicable, provide to the
Secretary the Federal tax information of the
borrower; and
``(ii) for whom adjusted gross income is
unavailable or does not reasonably reflect the
borrower's current income, shall provide to the
Secretary other documentation of income
satisfactory to the Secretary, which
documentation the Secretary may use to
determine an appropriate repayment schedule.
``(3) Notification to borrowers.--The Secretary shall
establish procedures under which a borrower of a loan made
under this part who chooses to repay such loan pursuant to
income-based repayment under this subsection is notified of the
terms and conditions of such plan, including notification that
if a borrower considers that special circumstances, such as a
loss of employment by the borrower or the borrower's spouse,
warrant an adjustment in the borrower's loan repayment as
determined using the borrower's Federal tax return information,
or the alternative documentation described in paragraph (2)(C),
the borrower may contact the Secretary, who shall determine
whether such adjustment is appropriate, in accordance with
criteria established by the Secretary.
``(4) Reduced payment periods.--
``(A) In general.--The Secretary shall authorize
borrowers meeting the criteria under subparagraph (B)
to make monthly payments of $5 for a period not in
excess of 3 years, except that--
``(i) for purposes of subparagraph (B)(i),
the Secretary may authorize reduced payments in
6-month increments, beginning on the date the
borrower provides to the Secretary the evidence
described in subclause (I) or (II) of
subparagraph (B)(i); and
``(ii) for purposes of subparagraph (B)(ii),
the Secretary may authorize reduced payments in
3-month increments, beginning on the date the
borrower provides to the Secretary the evidence
described in subparagraph (B)(ii)(I).
``(B) Eligibility determinations.--The Secretary
shall authorize borrowers to make reduced payments
under this paragraph in the following circumstances:
``(i) In a case of borrower who is seeking
and unable to find full-time employment, as
demonstrated by providing to the Secretary--
``(I) evidence of the borrower's
eligibility for unemployment benefits
to the Secretary; or
``(II) a written certification or an
equivalent that--
``(aa) the borrower has
registered with a public or
private employment agency that
is available to the borrower
within a 50-mile radius of the
borrower's home address; and
``(bb) in the case of a
borrower that has been granted
a request under this
subparagraph, the borrower has
made at least six diligent
attempts during the preceding
six-month period to secure
full-time employment.
``(ii) The Secretary determines that, due to
high medical expenses, the $25 monthly payment
the borrower would otherwise make would be an
extreme economic hardship to the borrower, if--
``(I) the borrower documents the
reason why the $25 minimum payment is
an extreme economic hardship; and
``(II) the borrower recertifies the
reason for the $5 minimum payment on a
three-month basis.
``(C) Definition.--For purpose of this section, the
term `full-time employment' means employment that will
provide not less than 30 hours of work a week and is
expected to continue for a period of not less than 3
months.
``(5) Definitions.--In this subsection:
``(A) Adjusted gross income.--The term `adjusted
gross income' has the meaning given the term in section
62 of the Internal Revenue Code of 1986.
``(B) Excepted federal one consolidation loan.--The
term `Excepted Federal ONE Consolidation Loan' means a
Federal ONE Consolidation Loan if the proceeds of such
loan were used to discharge the liability on--
``(i) a Federal ONE Parent Loan;
``(ii) a Federal Direct PLUS Loan, or a loan
under section 428B, that is made, insured, or
guaranteed on behalf of a dependent student;
``(iii) an excepted consolidation loan
(defined in section 493C); or
``(iv) a Federal ONE Consolidation loan that
was used to discharge the liability on a loan
described in clause (i), (ii), or (iii).
``(e) Rules of Construction.--Nothing in this section shall be
construed to authorize, with respect to loans made under this part--
``(1) eligibility for a repayment plan that is not described
in subsection (c)(1) or section 468(c); or
``(2) the Secretary to--
``(A) carry out a repayment plan, which is not
described in subsection (c)(1) or section 468(c); or
``(B) modify a repayment plan that is described in
subsection (c)(1) or section 468(c).
``SEC. 467. FEDERAL ONE PARENT LOANS.
``(a) Authority To Borrow.--
``(1) Authority and eligibility.--The parent of a dependent
student shall be eligible to borrow funds under this section in
amounts specified in subsection (b), if--
``(A) the parent is borrowing to pay for the
educational costs of a dependent student who meets the
requirements for an eligible student under section
484(a);
``(B) the parent meets the applicable requirements
concerning defaults and overpayments that apply to a
student borrower;
``(C) the parent complies with the requirements for
submission of a statement of educational purpose that
apply to a student borrower under section 484(a)(4)(A)
(other than the completion of a statement of selective
service registration status);
``(D) the parent meets the requirements that apply to
a student under section 437(a);
``(E) the parent--
``(i) does not have an adverse credit
history; or
``(ii) has an adverse credit history, but
has--
``(I) obtained an endorser who does
not have an adverse credit history or
documented to the satisfaction of the
Secretary that extenuating
circumstances exist in accordance with
paragraph (4)(D); and
``(II) completed Federal ONE Parent
Loan counseling offered by the
Secretary; and
``(F) in the case of a parent who has been convicted
of, or has pled nolo contendere or guilty to, a crime
involving fraud in obtaining funds under this title,
such parent has completed the repayment of such funds
to the Secretary, or to the holder in the case of a
loan under this title obtained by fraud.
``(2) Terms, conditions, and benefits.--Except as provided in
subsections (c), (d), and (e), loans made under this section
shall have the same terms, conditions, and benefits as all
other loans made under this part.
``(3) Parent borrowers.--
``(A) Definition.--For purposes of this section, the
term `parent' includes a student's biological or
adoptive mother or father or the student's stepparent,
if the biological parent or adoptive mother or father
has remarried at the time of filing the common
financial reporting form under section 483(a), and that
spouse's income and assets would have been taken into
account when calculating the student's expected family
contribution.
``(B) Clarification.--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.
``(4) Adverse credit history definitions and adjustments.--
``(A) Definitions.--For purposes of this section:
``(i) In general.--The term `adverse credit
history', when used with respect to a borrower,
means that the borrower--
``(I) has one or more debts with a
total combined outstanding balance
equal to or greater than $2,085, as may
be adjusted by the Secretary in
accordance with subparagraph (B),
that--
``(aa) are 90 or more days
delinquent as of the date of
the credit report; or
``(bb) have been placed in
collection or charged off
during the two years preceding
the date of the credit report;
or
``(II) has been the subject of a
default determination, bankruptcy
discharge, foreclosure, repossession,
tax lien, wage garnishment, or write-
off of a debt under this title during
the 5 years preceding the date of the
credit report.
``(ii) Charged off.--The term `charged off'
means a debt that a creditor has written off as
a loss, but that is still subject to collection
action.
``(iii) In collection.-- The term `in
collection' means a debt that has been placed
with a collection agency by a creditor or that
is subject to more intensive efforts by a
creditor to recover amounts owed from a
borrower who has not responded satisfactorily
to the demands routinely made as part of the
creditor's billing procedures.
``(B) Adjustments.--
``(i) In general.--In a case of a borrower
with a debt amount described in subparagraph
(A)(i), the Secretary shall increase such debt
amount, or its inflation-adjusted equivalent,
if the Secretary determines that an inflation
adjustment to such debt amount would result in
an increase of $100 or more to such debt
amount.
``(ii) Inflation adjustment.--In making the
inflation adjustment under clause (i), the
Secretary shall--
``(I) use the annual average percent
change of the All Items Consumer Price
Index for All Urban Consumers, before
seasonal adjustment, as the measurement
of inflation; and
``(II) if the adjustment calculated
under subclause (I) is equal to or
greater than $100--
``(aa) add the adjustment to
the debt amount, or its
inflation-adjusted equivalent;
and
``(bb) round up to the
nearest $5.
``(iii) Publication.--The Secretary shall
publish a notice in the Federal Register
announcing any increase to the threshold amount
specified in subparagraph (A)(i)(I).
``(C) Treatment of absence of credit history.--For
purposes of this section, the Secretary shall not
consider the absence of a credit history as an adverse
credit history and shall not deny a Federal ONE Parent
loan on that basis.
``(D) Extenuating circumstances.--For purposes of
this section, the Secretary may determine that
extenuating circumstances exist based on documentation
that may include--
``(i) an updated credit report for the
parent; or
``(ii) a statement from the creditor that the
parent has repaid or made satisfactory
arrangements to repay a debt that was
considered in determining that the parent has
an adverse credit history
``(b) Limitation Based on Need.--Any loan under this section may be
counted as part of the expected family contribution in the
determination of need under this title, but no loan may be made to any
parent under this section for any academic year in excess of the lesser
of--
``(1) the student's estimated cost of attendance minus the
student's estimated financial assistance (as calculated under
section 465(b)(1)(A)); or
``(2) the established annual loan limits for such loan under
section 465(b).
``(c) Parent Loan Disbursement.--All loans made under this section
shall be disbursed in accordance with the requirements of section
465(a) and shall be disbursed by--
``(1) an electronic transfer of funds from the lender to the
eligible institution; or
``(2) a check copayable to the eligible institution and the
parent borrower.
``(d) Payment of Principal and Interest.--
``(1) Commencement of repayment.--Repayment of principal on
loans made under this section shall commence not later than 60
days after the date such loan is disbursed by the Secretary,
subject to deferral--
``(A) during any period during which the parent
borrower meets the conditions required for a deferral
under section 469A; and
``(B) upon the request of the parent borrower, during
the 6-month period beginning, if the parent borrower is
also a student, the day after the date such parent
borrower ceases to carry at least one-half such a
workload.
``(2) Maximum repayment period.--The maximum repayment period
for a loan made under this section shall be a 10-year period
beginning on the commencement of such period described in
paragraph (1).
``(3) Capitalization of interest.--Interest on loans made
under this section for which payments of principal are deferred
pursuant to paragraph (1) shall, if agreed upon by the borrower
and the Secretary--
``(A) be paid monthly or quarterly; or
``(B) be added to the principal amount of the loan
not more frequently than quarterly by the Secretary.
``(4) Applicable rates of interest.--Interest on loans made
pursuant to this section shall be at the applicable rate of
interest provided in section 465(c)(3) for loans made under
this section.
``(5) Amortization.--Section 466(b)(2) shall apply to each
loan made under this section.
``(e) Verification of Immigration Status and Social Security
Number.--A parent who wishes to borrow funds under this section shall
be subject to verification of the parent's--
``(1) immigration status in the same manner as immigration
status is verified for students under section 484(g); and
``(2) social security number in the same manner as social
security numbers are verified for students under section
484(p).
``(f) Designation.--For purposes of this Act, the Federal ONE Loans
described in this section shall be known as `Federal ONE Parent Loans'.
``SEC. 468. FEDERAL ONE CONSOLIDATION LOANS.
``(a) Terms and Conditions.--In making consolidation loans under this
section, the Secretary shall--
``(1) not make such a loan to an eligible borrower, unless
the Secretary has determined, in accordance with reasonable and
prudent business practices, for each loan being consolidated,
that the loan--
``(A) is a legal, valid, and binding obligation of
the borrower; and
``(B) was made and serviced in compliance with
applicable laws and regulations;
``(2) ensure that each consolidation loan made under this
section will bear interest, and be subject to repayment, in
accordance with subsection (c), except as otherwise provided
under subsections (f) and (g) of section 465;
``(3) ensure that each consolidation loan will be made,
notwithstanding any other provision of this part limiting the
annual or aggregate principal amount for all loans made to a
borrower, in an amount which is equal to the sum of the unpaid
principal and accrued unpaid interest and late charges of all
eligible student loans received by the eligible borrower which
are selected by the borrower for consolidation;
``(4) ensure that the proceeds of each consolidation loan
will be paid by the Secretary to the holder or holders of the
loans so selected to discharge the liability on such loans;
``(5) disclose to a prospective borrower, in simple and
understandable terms, at the time the Secretary provides an
application for a consolidation loan--
``(A) with respect to a loan made, insured, or
guaranteed under this part, part B, or part D, that if
a borrower includes such a loan in the consolidation
loan--
``(i) that the consolidation would result in
a loss of loan benefits; and
``(ii) which specific loan benefits the
borrower would lose, including the loss of
eligibility for loan forgiveness (including
loss of eligibility for interest rate
forgiveness), cancellation, deferment,
forbearance, interest-free periods, or loan
repayment programs that would have been
available for such a loan; and
``(B) with respect to Federal Perkins Loans under
this part (as this part was in effect on the day before
the date of enactment of the PROSPER Act)--
``(i) that if a borrower includes such a
Federal Perkins Loan in the consolidation loan,
the borrower will lose all interest-free
periods that would have been available for the
Federal Perkins Loan, such as--
``(I) the periods during which no
interest accrues on such loan while the
borrower is enrolled in an institution
of higher education at least half-time;
``(II) the grace period under section
464(c)(1)(A) (as such section was in
effect on the day before the date of
enactment of the PROSPER Act); and
``(III) the periods during which the
borrower's student loan repayments are
deferred under section 464(c)(2) (as
such section was in effect on the day
before the date of enactment of the
PROSPER Act); and
``(ii) that if a borrower includes such a
Federal Perkins Loan in the consolidation loan,
the borrower will no longer be eligible for
cancellation of part or all of the Federal
Perkins Loan under section 465(a) (as such
section was in effect on the day before the
date of enactment of the PROSPER Act); and
``(iii) the occupations listed in section 465
that qualify for Federal Perkins Loan
cancellation under section 465(a) (as such
section was in effect on the day before the
date of enactment of the PROSPER Act);
``(C) the repayment plans that are available to the
borrower under section (c);
``(D) the options of the borrower to prepay the
consolidation loan, to pay such loan on a shorter
schedule, and to change repayment plans;
``(E) the consequences of default on the
consolidation loan; and
``(F) that by applying for a consolidation loan, the
borrower is not obligated to agree to take the
consolidation loan; and
``(6) not make such a loan to an eligible borrower, unless--
``(A) the borrower has agreed to notify the Secretary
promptly concerning any change of address; and
``(B) the loan is evidenced by a note or other
written agreement which--
``(i) is made without security and without
endorsement, except that if--
``(I) the borrower is a minor and
such note or other written agreement
executed by him or her would not, under
applicable law, create a binding
obligation, endorsement may be
required; or
``(II) the borrower desires to
include in the consolidation loan, a
Federal ONE Parent Loan, or a loan
under section 428B, or a Federal Direct
PLUS loan, made on behalf of a
dependent student, endorsement shall be
required;
``(ii) provides for the payment of interest
and the repayment of principal as described in
paragraph (2);
``(iii) provides that during any period for
which the borrower would be eligible for a
deferral under section 469A, which period shall
not be included in determining the repayment
schedule pursuant to subsection (c)--
``(I) periodic installments of
principal need not be paid, but
interest shall accrue and be paid by
the borrower or be capitalized; and
``(II) except as otherwise provided
under subsections (f) and (g) of
section 465, the Secretary shall not
pay interest on any portion of the
consolidation loan, without regard to
whether the portion repays Federal
Stafford Loans for which the student
borrower received an interest subsidy
under section 428 or Federal Direct
Stafford Loans for which the borrower
received an interest subsidy under
section 455;
``(iv) entitles the borrower to accelerate
without penalty repayment of the whole or any
part of the loan; and
``(v) contains a notice of the system of
disclosure concerning such loan to consumer
reporting agencies under section 430A, and
provides that the Secretary on request of the
borrower will provide information on the
repayment status of the note to such consumer
reporting agencies.
``(b) Nondiscrimination in Loan Consolidation.--The Secretary shall
not discriminate against any borrower seeking a loan under this
section--
``(1) based on the number or type of eligible student loans
the borrower seeks to consolidate;
``(2) based on the type or category of institution of higher
education that the borrower attended;
``(3) based on the interest rate to be charged to the
borrower with respect to the consolidation loan; or
``(4) with respect to the types of repayment schedules
offered to such borrower.
``(c) Payment of Principal and Interest.--
``(1) Repayment schedules.--
``(A) Establishment.--
``(i) In general.--Notwithstanding any other
provision of this part, the Secretary shall--
``(I) establish repayment terms as
will promote the objectives of this
section; and
``(II) provide a borrower with the
option of the standard-repayment plan
or income-based repayment plan under
section 466(d) in lieu of such
repayment terms.
``(ii) Schedule terms.--The repayment terms
established under clause (i)(I) shall require
that if the sum of the consolidation loan and
the amount outstanding on other eligible
student loans to the individual--
``(I) is less than $7,500, then such
consolidation loan shall be repaid in
not more than 10 years;
``(II) is equal to or greater than
$7,500 but less than $10,000, then such
consolidation loan shall be repaid in
not more than 12 years;
``(III) is equal to or greater than
$10,000 but less than $20,000, then
such consolidation loan shall be repaid
in not more than 15 years;
``(IV) is equal to or greater than
$20,000 but less than $40,000, then
such consolidation loan shall be repaid
in not more than 20 years;
``(V) is equal to or greater than
$40,000 but less than $60,000, then
such consolidation loan shall be repaid
in not more than 25 years; or
``(VI) is equal to or greater than
$60,000, then such consolidation loan
shall be repaid in not more than 30
years.
``(B) Limitation.--The amount outstanding on other
eligible student loans which may be counted for the
purpose of subparagraph (A) may not exceed the amount
of the consolidation loan.
``(2) Additional repayment requirements.--Notwithstanding
paragraph (1)--
``(A) except in the case of an income-based repayment
schedule under section 466(d), a repayment schedule
established with respect to a consolidation loan shall
require that the minimum installment payment be an
amount equal to not less than the accrued unpaid
interest; and
``(B) an income-based repayment schedule under
section 466(d) shall not be available to a
consolidation loan borrower who--
``(i) used the proceeds of a Federal ONE
Consolidation loan to discharge the liability--
``(I) on a loan under section 428B
made on behalf of a dependent student;
``(II) a Federal Direct PLUS loan
made on behalf of a dependent student;
``(III) a Federal ONE Parent loan; or
``(IV) an excepted consolidation loan
(defined in section 493C); or
``(ii) used the proceeds of a subsequent
Federal ONE Consolidation loan to discharge the
liability on a Federal ONE Consolidation loan
described in clause (i).
``(3) Commencement of repayment.--Repayment of a
consolidation loan shall commence within 60 days after all
holders have, pursuant to subsection (a)(4), discharged the
liability of the borrower on the loans selected for
consolidation.
``(4) Interest rate.--A consolidation loan made under this
section shall bear interest at an annual rate described in
section 465(c)(4).
``(d) Insurance Rule.--Any insurance premium paid by the borrower
under subpart I of part A of title VII of the Public Health Service Act
with respect to a loan made under that subpart and consolidated under
this section shall be retained by the student loan insurance account
established under section 710 of the Public Health Service Act.
``(e) Definitions.--For the purpose of this section:
``(1) Eligible borrower.--
``(A) In general.--The term `eligible borrower' means
a borrower who--
``(i) is not subject to a judgment secured
through litigation with respect to a loan under
this title or to an order for wage garnishment
under section 488A; and
``(ii) at the time of application for a
consolidation loan--
``(I) is in repayment status as
determined under section 466(a)(1);
``(II) is in a grace period preceding
repayment; or
``(III) is a defaulted borrower who
has made arrangements to repay the
obligation on the defaulted loans
satisfactory to the holders of the
defaulted loans.
``(B) Termination of status as an eligible
borrower.--An individual's status as an eligible
borrower under this section terminates upon receipt of
a consolidation loan under this section, except that--
``(i) an individual who receives eligible
student loans after the date of receipt of the
consolidation loan may receive a subsequent
consolidation loan;
``(ii) loans received prior to the date of
the consolidation loan may be added during the
180-day period following the making of the
consolidation loan;
``(iii) loans received following the making
of the consolidation loan may be added during
the 180-day period following the making of the
consolidation loan;
``(iv) loans received prior to the date of
the first consolidation loan may be added to a
subsequent consolidation loan; and
``(v) an individual may obtain a subsequent
consolidation loan for the purpose--
``(I) of income-based repayment under
section 466(d) only if the loan has
been submitted for default aversion or
if the loan is already in default;
``(II) of using the no accrual of
interest for active duty service
members benefit offered under section
465(g); of
``(III) of submitting an application
under section 469B(d) for a borrower
defense to repayment of a loan made,
insured, or guaranteed under this
title.
``(2) Eligible student loans.--For the purpose of paragraph
(1), the term `eligible student loans' means loans--
``(A) made, insured, or guaranteed under part B, and
first disbursed before July 1, 2010, including loans on
which the borrower has defaulted (but has made
arrangements to repay the obligation on the defaulted
loans satisfactory to the Secretary or guaranty agency,
whichever insured the loans);
``(B) made under part D of this title, and first
disbursed before July 1, 2019;
``(C) made under this part before September 30, 2017;
``(D) made under this part on or after the date of
enactment of the PROSPER Act;
``(E) made under subpart II of part A of title VII of
the Public Health Service Act; or
``(F) made under part E of title VIII of the Public
Health Service Act.
``(f) Designation.--For purposes of this Act, the Federal ONE Loans
described in this section shall be known as `Federal ONE Consolidation
Loans'.
``SEC. 469. TEMPORARY LOAN CONSOLIDATION AUTHORITY.
``(a) In General.--A borrower who has 1 or more loans in 2 or more of
the categories described in subsection (b), and who has not yet entered
repayment on 1 or more of those loans in any of the categories, may
consolidate all of the loans of the borrower that are described in
subsection (b) into a Federal ONE Consolidation Loan during the period
described in subsection (c).
``(b) Categories of Loans That May Be Consolidated.--The categories
of loans that may be consolidated under this section are--
``(1) loans made under this part before October 1, 2017 and
on or after July 1, 2019;
``(2) loans purchased by the Secretary pursuant to section
459A;
``(3) loans made under part B that are held by an eligible
lender, as such term is defined in section 435(d); and
``(4) loans made under part D.
``(c) Time Period in Which Loans May Be Consolidated.--The Secretary
may make a Federal ONE Consolidation Loan under this section to a
borrower whose application for such Federal ONE Consolidation Loan is
received on or after July 1, 2019, and before July 1, 2024.
``(d) Terms of Loans.--A Federal ONE Consolidation Loan made under
this subsection shall have the same terms and conditions as a Federal
ONE Consolidation Loan made under section 468, except that in
determining the applicable rate of interest on the Federal ONE
Consolidation Loan made under this section, section 465(c)(4) shall be
applied without rounding the weighted average of the interest rate on
the loans consolidated to the nearest higher one-eighth of one percent
as in such section.
``SEC. 469A. DEFERMENT.
``(a) Effect on Principal and Interest.--A borrower of a loan made
under this part who meets the requirements described in subsection (b)
shall be eligible for a deferment during which installments of
principal need not be paid and, unless otherwise provided in this
subsection, interest shall accrue and be capitalized or paid by the
borrower.
``(b) Eligibility.--A borrower of a loan made under this part shall
be eligible for a deferment--
``(1) during any period during which the borrower--
``(A) is carrying at least one-half the normal full-
time work load for the course of study that the
borrower is pursuing, as determined by the eligible
institution the borrower is attending;
``(B) is pursuing a course of study pursuant to--
``(i) an eligible graduate fellowship program
in accordance with subsection (g); or
``(ii) an eligible rehabilitation training
program for individuals with disabilities in
accordance with subsection (i);
``(C) is serving on active duty during a war or other
military operation or national emergency, and for the
180-day period following the demobilization date for
such service;
``(D) is performing qualifying National Guard duty
during a war or other military operation or national
emergency, and for the 180-day period following the
demobilization date for such service;
``(E) is a member of the National Guard who is not
eligible for a post-active duty deferment under section
493D and is engaged in active State duty for a period
of more than 30 consecutive days beginning--
``(i) the day after 6 months after the date
the student ceases to carry at least one-half
the normal full-time academic workload (as
determined by the institution); or
``(ii) the day after the borrower ceases
enrollment on at least a half-time basis, for a
loan in repayment;
``(F) is serving in a medical or dental internship or
residency program, the successful completion of which
is required to begin professional practice or service,
or is serving in a medical or dental internship or
residency program leading to a degree or certificate
awarded by an institution of higher education, a
hospital, or a health care facility that offers
postgraduate training; or
``(G) is eligible for interest payments to be made on
a loan made under this part for service in the Armed
Forces under section 2174 of title 10, United States
Code, and pursuant to that eligibility, the interest is
being paid on such loan under section 465(f);
``(2) during a period sufficient to enable the borrower to
resume honoring the agreement to repay the outstanding balance
of principal and interest on the loan after default, if--
``(A) the borrower signs a new agreement to repay
such outstanding balance;
``(B) the deferment period is limited to 120 days;
and
``(C) such deferment is not granted for consecutive
periods;
``(3) during a period of administrative deferment described
in subsection (j); or
``(4) in the case of a borrower of a Federal ONE Parent Loan
or an Excepted Federal ONE Consolidation Loan, during a period
described in subsection (k).
``(c) Length of Deferment.--A deferment granted by the Secretary--
``(1) under subparagraph (F) or (G) of subsection (b)(1)
shall be renewable at 12 month intervals;
``(2) under subparagraph (F) of subsection (b)(1) shall equal
the length of time remaining in the borrower's medical or
dental internship or residency program; and
``(3) under subparagraph (G) of subsection (b)(1) shall not
exceed 3 years.
``(d) Request and Documentation.--The Secretary shall determine the
eligibility of a borrower for a deferment under paragraphs (1), (2), or
(4) of subsection (b), or in the case of a loan for which an endorser
is required, an endorser's eligibility for a deferment under paragraph
(2) or (4) or eligibility to request a deferment under paragraph (1),
based on--
``(1) the receipt of a request for a deferment from the
borrower or the endorser, and documentation of the borrower's
or endorser's eligibility for the deferment or eligibility to
request the deferment;
``(2) receipt of a completed loan application that documents
the borrower's eligibility for a deferment;
``(3) receipt of a student status information documenting
that the borrower is enrolled on at least a half-time basis; or
``(4) the Secretary's confirmation of the borrower's half-
time enrollment status, if the confirmation is requested by the
institution of higher education.
``(e) Notification.--The Secretary shall--
``(1) notify a borrower of a loan made under this part--
``(A) the granting of a deferment under this
subsection on such loan; and
``(B) the option of the borrower to continue making
payments on the outstanding balance of principal and
interest on such loan in accordance with subsection
(f);
``(2) at the time the Secretary grants a deferment to a
borrower of a loan made under this part, and not less
frequently than once every 180 days during the period of such
deferment, provide information to the borrower to assist the
borrower in understanding--
``(A) the effect of granting a deferment on the total
amount to be paid under the income-based repayment plan
under 466(d);
``(B) the fact that interest will accrue on the loan
for the period of deferment, other than for a deferment
granted under subsection (b)(1)(G);
``(C) the amount of unpaid principal and the amount
of interest that has accrued since the last statement
of such amounts provided to the borrower;
``(D) the amount of interest that will be
capitalized, and the date on which capitalization will
occur;
``(E) the effect of the capitalization of interest on
the borrower's loan principal and on the total amount
of interest to be paid on the loan;
``(F) the option of the borrower to pay the interest
that has accrued before the interest is capitalized;
and
``(G) the borrower's option to discontinue the
deferment at any time.
``(f) Form of Deferment.--The form of a deferment granted under this
subsection on a loan made under this part shall be temporary cessation
of all payments on such loan, except that--
``(1) in the case of a deferment granted under subsection
(b)(1)(G), payments of interest on the loan will be made by the
Secretary under section 465(f) during such period of deferment;
and
``(2) a borrower may make payments on the outstanding balance
of principal and interest on such loan during any period of
deferment granted under this subsection.
``(g) Graduate Fellowship Deferment.--
``(1) In general.--A borrower of a loan under this part is
eligible for a deferment under subsection (b)(1)(B)(i) during
any period for which an authorized official of the borrower's
graduate fellowship program certifies that the borrower meets
the requirements of paragraph (2) and is pursuing a course of
study pursuant to an eligible graduate fellowship program.
``(2) Borrower requirements.--A borrower meets the
requirements of this subparagraph if the borrower--
``(A) holds at least a baccalaureate degree conferred
by an institution of higher education;
``(B) has been accepted or recommended by an
institution of higher education for acceptance on a
full-time basis into an eligible graduate fellowship
program; and
``(C) is not serving in a medical internship or
residency program, except for a residency program in
dentistry.
``(h) Treatment of Study Outside the United States.--
``(1) In general.--The Secretary shall treat, in the same
manner as required under section 428(b)(4), any course of study
at a foreign university that is accepted for the completion of
a recognized international fellowship program by the
administrator of such a program as an eligible graduate
fellowship program.
``(2) Requests for deferment.--Requests for deferment of
repayment of loans under this subsection by students engaged in
graduate or postgraduate fellowship-supported study (such as
pursuant to a Fulbright grant) outside the United States shall
be approved until completion of the period of the fellowship,
in the same manner as required under section 428(b)(4).
``(i) Rehabilitation Training Program Deferment.--A borrower of a
loan under this part is eligible for a deferment under subsection
(b)(1)(B)(ii) during any period for which an authorized official of the
borrower's rehabilitation training program certifies that the borrower
is pursuing an eligible rehabilitation training program for individuals
with disabilities.
``(j) Administrative Deferments.--The Secretary may grant a deferment
to a borrower or, in the case of a loan for which an endorser is
required, an endorser, without requiring a request and documentation
from the borrower or the endorser under subsection (d) for--
``(1) a period during which the borrower was delinquent at
the time a deferment is granted, including a period for which
scheduled payments of principal and interest were overdue at
the time such deferment is granted;
``(2) a period during which the borrower or the endorser was
granted a deferment under this subsection but for which the
Secretary determines the borrower or the endorser should not
have qualified;
``(3) a period necessary for the Secretary to determine the
borrower's eligibility for the cancellation of the obligation
of the borrower to repay the loan under section 437;
``(4) a period during which the Secretary has authorized
deferment due to a national military mobilization or other
local or national emergency; or
``(5) a period not to exceed 60 days, during which interest
shall accrue but not be capitalized, if the Secretary
reasonably determines that a suspension of collection activity
is warranted to enable the Secretary to process supporting
documentation relating to a borrower's request--
``(A) for a deferment under this subsection;
``(B) for a change in repayment plan under section
466(c); or
``(C) to consolidate loans under section 468.
``(k) Deferments for Parent or Excepted Consolidation Loans.--
``(1) In general.--A qualified borrower shall be eligible for
deferments under paragraphs (3) through (5).
``(2) Qualified borrower defined.--In this subsection, the
term `qualified borrower' means--
``(A) a borrower of a Federal ONE Parent Loan or an
Excepted Federal ONE Consolidation Loan; or
``(B) in the case of such a loan for which an
endorser is required, the endorser of such loan.
``(3) Economic hardship deferment.--
``(A) In general.--A qualified borrower shall be
eligible for a deferment during periods, not to exceed
3 years in total, during which the qualified borrower
experiences an economic hardship described in
subparagraph (B).
``(B) Economic hardship.--An economic hardship
described in this clause is a period during which the
qualified borrower--
``(i) is receiving payment under a means-
tested benefit program;
``(ii) is employed full-time and the monthly
gross income of the qualified borrower does not
exceed the greater of--
``(I) the minimum wage rate described
in section 6 of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206);
or
``(II) an amount equal to 150 percent
of the poverty line; or
``(iii) demonstrates that the sum of the
qualified borrower's monthly payments on the
qualified borrower's Federal ONE Parent Loan or
Excepted Federal ONE Consolidation Loan is not
less than 20 percent of the qualified
borrower's monthly gross income.
``(C) Eligibility.--To be eligible to receive a
deferment under this subparagraph, a qualified borrower
shall submit to the Secretary--
``(i) for the first period of deferment under
this subparagraph, evidence showing the monthly
gross income of the qualified borrower; and
``(ii) for a subsequent period of deferment
that begins less than one year after the end of
a period of deferment granted under this
subparagraph--
``(I) evidence showing the monthly
gross income of the qualified borrower;
or
``(II) the qualified borrower's most
recently filed Federal income tax
return, if such a return was filed in
either of the two tax years preceding
the year in which the qualified
borrower requests the subsequent period
of deferment.
``(4) Unemployment deferment.--
``(A) In general.--A qualified borrower shall be
eligible for a deferment for periods during which the
qualified borrower is seeking, and is unable to find,
full-time employment.
``(B) Eligibility.--
``(i) In general.--To be eligible to receive
an deferment under this subparagraph, a
qualified borrower shall submit to the
Secretary--
``(I) evidence of the qualified
borrower's eligibility for unemployment
benefits; or
``(II) written confirmation, or an
equivalent as approved by the
Secretary, that--
``(aa) the qualified borrower
has registered with a public or
private employment agency, if
one is available to the
borrower within 50 miles of the
qualified borrower's address;
and
``(bb) for requests submitted
after the initial request, the
qualified borrower has made at
least six diligent attempts
during the preceding six-month
period to secure full-time
employment.
``(ii) Acceptance of employment.--A qualified
borrower shall not be eligible for a deferment
under this subparagraph if the qualified
borrower refuses to seek or accept employment
in types of positions or at salary levels or
responsibility levels for which the qualified
borrower feels overqualified based on the
qualified borrower's education or previous
experience.
``(C) Terms of deferment.--The following terms shall
apply to a deferment under this subparagraph:
``(i) Initial period.--The first deferment
granted to a qualified borrower under this
subparagraph may be for a period of
unemployment beginning not more than 6 months
before the date on which the Secretary receives
the qualified borrower's request for deferment
and may be granted for a period of up to 6
months after that date.
``(ii) Renewals.--Deferments under this
subparagraph shall be renewable at 6-month
intervals beginning after the expiration of the
first period of deferment under clause (i). To
be eligible to renew a deferment under this
subparagraph, a qualified borrower shall submit
to the Secretary the information described in
subparagraph (B)(i).
``(iii) Aggregate limit.--The period of all
deferments granted to a borrower under this
subparagraph may not exceed 3 years in
aggregate.
``(5) Health deferment.--
``(A) In general.--A qualified borrower shall be
eligible for a deferment during periods in which the
qualified borrower is unable to make scheduled loan
payments due to high medical expenses, as determined by
the Secretary.
``(B) Eligibility.--To be eligible to receive a
deferment under this subparagraph, a qualified borrower
shall--
``(i) submit to the Secretary documentation
demonstrating that making scheduled loan
payments would be an extreme economic hardship
to the borrower due to high medical expenses,
as determined by the Secretary; and
``(ii) resubmit such documentation to the
Secretary not less frequently than once every 3
months.
``(l) Prohibitions.--
``(1) Prohibition on fees.--No administrative fee or other
fee may be charged to the borrower in connection with the
granting of a deferment under this subsection.
``(2) Prohibition on adverse credit reporting.--No adverse
information relating to a borrower may be reported to a
consumer reporting agency solely because of the granting of a
deferment under this subsection.
``(3) Limitation on authority.--The Secretary shall not,
through regulation or otherwise, authorize additional deferment
options or periods of deferment other than the deferment
options and periods of deferment authorized under this
subsection.
``(m) Treatment of Endorsers.--With respect to any Federal ONE Parent
Loan or Federal ONE Consolidation Loan for which an endorser is
required--
``(1) paragraphs (2) through (4) of subsection (b) shall be
applied--
``(A) by substituting `An endorser' for `A borrower';
``(B) by substituting `the endorser' for `the
borrower'; and
``(C) by substituting `an endorser' for `a borrower';
and
``(2) in the case in which the borrower of such a loan is
eligible for a deferment described in subparagraph (C), (D),
(E), (F), or (G) of subsection (b)(1), but is not making
payments on the loan, the endorser of the loan may request a
deferment under such subparagraph for the loan.
``(n) Definitions.--In this section:
``(1) Eligible graduate fellowship program.--The term
`eligible graduate fellowship program', when used with respect
to a course of study pursued by the borrower of a loan under
this part, means a fellowship program that--
``(A) provides sufficient financial support to
graduate fellows to allow for full-time study for at
least six months;
``(B) requires a written statement from each
applicant explaining the applicant's objectives before
the award of that financial support;
``(C) requires a graduate fellow to submit periodic
reports, projects, or evidence of the fellow's
progress; and
``(D) in the case of a course of study at an
institution of higher education outside the United
States described in section 102, accepts the course of
study for completion of the fellowship program.
``(2) Eligible rehabilitation training program for
individuals with disabilities.--The term `eligible
rehabilitation training program for individuals with
disabilities', when used with respect a course of study pursued
by the borrower of a loan under this part, means a program
that--
``(A) is necessary to assist an individual with a
disability in preparing for, securing, retaining, or
regaining employment;
``(B) is licensed, approved, certified, or otherwise
recognized as providing rehabilitation training to
disabled individuals by--
``(i) a State agency with responsibility for
vocational rehabilitation programs, drug abuse
treatment programs, mental health services
programs, or alcohol abuse treatment programs;
or
``(ii) the Secretary of the Department of
Veterans Affairs; and
``(C) provides or will provide the borrower with
rehabilitation services under a written plan that--
``(i) is individualized to meet the
borrower's needs;
``(ii) specifies the date on which the
services to the borrower are expected to end;
and
``(iii) requires a commitment of time and
effort from the borrower that prevents the
borrower from being employed at least 30 hours
per week, either because of the number of hours
that must be devoted to rehabilitation or
because of the nature of the rehabilitation.
``(3) Excepted federal one consolidation loan.--The `Excepted
Federal ONE Consolidation Loan' have the meaning given the term
in section 466(d)(5).
``(4) Family size.--The term `family size' means the number
that is determined by counting--
``(A) the borrower;
``(B) the borrower's spouse;
``(C) the borrower's children, including unborn
children who are expected to be born during the period
covered by the deferment, if the children receive more
than half their support from the borrower; and
``(D) another individual if, at the time the borrower
requests a deferment under this section, the
individual--
``(i) lives with the borrower;
``(ii) receives more than half of the
individual's support (which may include money,
gifts, loans, housing, food, clothes, car,
medical and dental care, and payment of college
costs) from the borrower; and
``(iii) is expected to receive such support
from the borrower during the relevant period of
deferment.
``(5) Full-time.--The term `full-time', when used with
respect to employment, means employment for not less than 30
hours per week that is expected to continue for not less than
three months.
``(6) Means-tested benefit program.--The term `means-tested
benefit program' means--
``(A) a State public assistance program under which
eligibility for the program's benefits, or the amount
of such benefits, are determined on the basis of income
or resources of the individual or family seeking the
benefit; or
``(B) a mandatory spending program of the Federal
Government, other than a program under this title,
under which eligibility for the program's benefits, or
the amount of such benefits, are determined on the
basis of income or resources of the individual or
family seeking the benefit, and may include such
programs as
``(i) the supplemental security income
program under title XVI of the Social Security
Act (42 U.S.C. 1381 et seq.);
``(ii) the supplemental nutrition assistance
program under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.);
``(iii) the free and reduced price school
lunch program established under the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.);
``(iv) the program of block grants for States
for temporary assistance for needy families
established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
``(v) the special supplemental nutrition
program for women, infants, and children
established by section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786); and
``(vi) other programs identified by the
Secretary.
``(7) Monthly gross income.--The term `monthly gross income',
when used with respect to a borrower, means--
``(A) the gross amount of income received by the
borrower from employment and other sources for the most
recent month; or
``(B) one-twelfth of the borrower's adjusted gross
income, as recorded on the borrower's most recently
filed Federal income tax return.
``SEC. 469B. ADDITIONAL TERMS.
``(a) Applicable Part B Provisions.--
``(1) Disclosures.--Except as otherwise provided in this
part, section 455(p) shall apply with respect to loans under
this part in the same manner that such section applies with
respect to loans under part D.
``(2) Other provisions.--Except as otherwise provided in this
part, the following provisions shall apply with respect to
loans made under this part in the same manner that such
provisions apply with respect to loans made under part D:
``(A) Section 427(a)(2).
``(B) Section 428(d).
``(C) Section 428F
``(D) Section 430A.
``(E) Paragraphs (1), (2), (4), and (6) of section
432(a).
``(F) Section 432(i).
``(G) Section 432(l).
``(H) Section 432(m), except that an institution of
higher education shall have a separate master
promissory note under paragraph (1)(D) of such section
for loans made under this part.
``(I) Subsections (a), (c), and (d) of section 437.
``(3) Application of provisions.--Any provision listed under
paragraph (1) or (2) that applies to--
``(A) Federal Direct PLUS Loans made on behalf of
dependent students shall apply to Federal ONE Parent
Loans;
``(B) Federal Direct PLUS Loans made to students
shall apply to Federal ONE Loans for graduate or
professional students;
``(C) Federal Direct Unsubsidized Stafford loans
shall apply to Federal ONE Loans (other than Federal
ONE Consolidation Loans) for any student borrower;
``(D) Federal Direct Consolidation Loans shall apply
to Federal ONE Consolidation Loans; and
``(E) forbearance shall apply to deferment under
section 469A.
``(b) Eligible Student.--A loan under this part may only be made to a
student who--
``(1) is an eligible student under section 484;
``(2) has agreed to notify promptly the Secretary and the
applicable contractors with which the Secretary has a contract
under section 493E concerning--
``(A) any change of permanent address, telephone
number, or email address;
``(B) when the student ceases to be enrolled on at
least a half-time basis; and
``(C) any other change in status, when such change in
status affects the student's eligibility for the loan;
and
``(3) is carrying at least one-half the normal full-time
academic workload for the course of study the student is
pursuing (as determined by the institution).
``(c) Loan Application and Promissory Note.--The common financial
reporting form required in section 483(a)(1) shall constitute the
application for loans made under this part. The Secretary shall
develop, print, and distribute to participating institutions a standard
promissory note and loan disclosure form.
``(d) Borrower Defenses.--A borrower of a loan under this part may
assert a defense to repayment to such loan under the provisions of
section 455(h) that apply to a borrower of a loan made under part D
asserting, on or after the date of enactment of the PROSPER Act, a
defense to repayment to such loan made under part D.
``(e) Identity Fraud Protection.--The Secretary shall ensure that
monthly Federal ONE Loan statements and other publications of the
Department do not contain more than four digits of the Social Security
number of any individual.
``(f) Authority to Sell Loans.--The Secretary, in consultation with
the Secretary of the Treasury, is authorized to sell loans made under
this part on such terms determined to be in the best interest of the
United States, except that any such sale shall not result in any cost
to the Federal Government.''.
PART F--NEED ANALYSIS
SEC. 471. COST OF ATTENDANCE.
Section 472 (20 U.S.C. 1087ll) is amended--
(1) by striking paragraph (10); and
(2) by redesignating paragraphs (11), (12), and (13) as
paragraphs (10), (11), and (12), respectively.
SEC. 472. SIMPLIFIED NEEDS TEST.
Section 479(b)(1) (20 U.S.C. 1087ss) is amended by striking
``$50,000'' both places it appears and inserting ``$100,000''.
SEC. 473. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.
Section 479A (20 U.S.C. 1087tt) is amended--
(1) in subsection (a), by striking ``financial assistance
under section 428H or a Federal Direct Unsubsidized Stafford
Loan'' and inserting ``a Federal Direct Unsubsidized Stafford
Loan or a Federal ONE Loan'';
(2) in subsection (c), by striking ``part B or D'' and
inserting ``part D or E''; and
(3) by adding at the end the following:
``(d) Adjustment Based on Delivery of Instruction.--A student's
eligibility to receive grants, loans, or work assistance under this
title shall be reduced if a financial aid officer determines, in
accordance with the discretionary authority provided under this
section, that the model or method used to deliver instruction to the
student results in a substantially reduced cost of attendance to the
student.''.
SEC. 474. DEFINITIONS OF TOTAL INCOME AND ASSETS.
Section 480 (20 U.S.C. 1087vv) is amended--
(1) in subsection (a)(1), by striking subparagraph (B) and
inserting the following:
``(B) Notwithstanding section 478(a), the Secretary shall provide for
the use of data from the second preceding tax year to carry out the
simplification of applications (including simplification for a subset
of applications) used for the estimation and determination of financial
aid eligibility. Such simplification shall include the sharing of data
between the Internal Revenue Service and the Department, pursuant to
the consent of the taxpayer.''; and
(2) in subsection (f)--
(A) in paragraph (2)--
(i) in subparagraph (B), by striking ``or''
at the end;
(ii) in subparagraph (C), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(D) a qualified tuition program (as defined in
section 529(b)(1)(A) of the Internal Revenue Code of
1986).''; and
(B) in paragraph (5)(A)(i), by striking ``qualified
tuition program (as defined in section 529(b)(1)(A) of
the Internal Revenue Code of 1986) or other''.
PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE
SEC. 481. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE PROGRAM.
Section 481 (20 U.S.C. 1088) is amended--
(1) in subsection (a)--
(A) in paragraph (2)(A)--
(i) by striking ``For the'' and inserting the
following: ``Except as provided in paragraph
(3), for the''; and
(ii) in clause (i), by striking ``require a
minimum of 30 weeks'' and inserting the
following: ``require--
``(I) a minimum of 30 weeks'';
(iii) in clause (ii), by striking
``require'';
(iv) by redesignating clause (ii) as
subclause (II) (and by adjusting the margin
accordingly); and
(v) by redesignating clause (iii) as clause
(ii); and
(B) by adding at the end the following:
``(3)(A) For the purpose of a competency-based education
program the term `academic year' shall be the published
measured period established by the institution of higher
education that is necessary for a student with a normal full-
time workload for the course of study the student is pursuing
(as measured using the value of competencies or sets of
competencies required by such institution and approved by such
institution's accrediting agency or association) to earn--
``(i) one-quarter of a bachelor's degree;
``(ii) one-half of an associate's degree; or
``(iii) with respect to a non-degree or graduate program, the
equivalent of a period described in clause (i) or (ii).
``(B)(i) A competency-based education program that is
not a term-based program may be treated as a term-based
program for purposes of establishing payment periods
for disbursement of loans and grants under this title
if--
``(I) the institution of higher education
that offers such program charges a flat
subscription fee for access to instruction
during a period determined by the institution;
and
``(II) the institution is able to determine
the competencies a student is expected to
demonstrate for such subscription period.
``(ii) Clause (i) shall apply even in a case in which
instruction or other work with respect to a competency
that is expected to be attributable to a subscription
period begins prior to such subscription period.
``(iii) In a case in which a competency-based
education program offered by an institution of higher
education is treated as a term-based program under
clause (i), the institution shall review the academic
progress of each student enrolled in such program in
accordance with section 484(c), except that such review
shall occur at the end of each payment period.'';
(2) by amending subsection (b) to read as follows:
``(b) Eligible Program.--(1) For purposes of this title, the term
`eligible program' means--
``(A) a program of at least 300 clock hours of instruction, 8
semester hours, or 12 quarter hours, offered during a minimum
of 10 weeks; or
``(B) a competency-based program that--
``(i) has been evaluated and approved by an
accrediting agency or association that--
``(I) is recognized by the Secretary under
subpart 2 of part H; and
``(II) has evaluation of competency-based
education programs within the scope of its
recognition in accordance with section
496(a)(4)(C); or
``(ii) as of the day before the date of enactment of
the PROSPER Act, met the requirements of a direct
assessment program under section 481(b)(4) (as such
section was in effect on the day before such date of
enactment).
``(2) An eligible program described in paragraph (1) may be offered
in whole or in part through telecommunications.
``(3) For purposes of this title, the term `eligible program' does
not include a program that loses its eligibility under section 481B(a).
``(4)(A) If an eligible institution enters into a written arrangement
with an institution or organization that is not an eligible institution
under which such ineligible institution or organization provides the
educational program (in whole or in part) of students enrolled in the
eligible institution, the educational program provided by such
ineligible institution shall be considered to be an eligible program
if--
``(i) the ineligible institution or organization has
not--
``(I) had its eligibility to participate in
the programs under this title terminated by the
Secretary;
``(II) voluntarily withdrawn from
participation in the programs under this title
under a proceeding initiated by the Secretary,
accrediting agency or association, guarantor,
or the licensing agency for the State in which
the institution is located, including a
termination, show-cause, or suspension;
``(III) had its certification under subpart 3
of part H to participate in the programs under
this title revoked by the Secretary;
``(IV) had its application for
recertification under subpart 3 of part H to
participate in the programs under this title
denied by the Secretary; or
``(V) had its application for certification
under subpart 3 of part H to participate in the
programs under this title denied by the
Secretary;
``(ii) the educational program offered by the
institution that grants the degree or certificate
otherwise satisfies the requirements of paragraph (1);
and
``(iii)(I) the ineligible institution or organization
provides 25 percent or less of the educational program;
or
``(II)(aa) the ineligible institution or organization
provides more than 25 percent of the educational
program; and
``(bb) the eligible institution's accrediting agency
or association has determined that the eligible
institution's arrangement meets the agency's standards
for the contracting out of educational services in
accordance with section 496(c)(5)(B)(iv).
``(B) For purposes of subparagraph (A), the term `eligible
institution' means an institution described in section 487(a).''; and
(3) in subsection (c)(2), by striking ``part B of''.
SEC. 482. PROGRAMMATIC LOAN REPAYMENT RATES.
Part G of title IV (20 U.S.C. 1088 et seq.) is amended, as amended by
section 481, is further amended by inserting after section 481A (20
U.S.C. 1088a) the following:
``SEC. 481B. PROGRAMMATIC LOAN REPAYMENT RATES.
``(a) Ineligibility of an Educational Program Based on Low Repayment
Rates.--
``(1) In general.--With respect to fiscal year 2016 and each
succeeding fiscal year, an educational program at an
institution of higher education whose loan repayment rate is
less than 45 percent for each of the 3 most recent fiscal years
for which data are available shall not be considered an
eligible program for the fiscal year in which the determination
is made and for the 2 succeeding fiscal years, unless, not
later than 30 days after receiving notification from the
Secretary of the loss of eligibility under this paragraph, the
institution appeals the loss of such program's eligibility to
the Secretary.
``(2) Appeal.--The Secretary shall issue a decision on any
such appeal within 45 days after its submission. Such decision
may permit a program to be considered an eligible program, if--
``(A) the institution demonstrates to the
satisfaction of the Secretary that--
``(i) the Secretary's calculation of such
program's loan repayment rate is not accurate;
and
``(ii) recalculation would increase such
program's loan repayment rate for any of the 3
fiscal years equal to or greater than 45
percent; or
``(B) the program is not subject to paragraph (1) by
reason of paragraph (3).
``(3) Participation rate index.--
``(A) In general.--An institution that demonstrates
to the Secretary that a program's participation rate
index is equal to or less than 0.11 for any of the 3
most recent fiscal years for which data is available
shall not be subject to paragraph (1).
``(B) Index calculation.--The participation rate
index for a program shall be determined by
multiplying--
``(i) the amount of the difference between--
``(I) 1.0; and
``(II) the quotient that results by
dividing--
``(aa) the program's loan
repayment rate for a fiscal
year, or the weighted average
loan repayment rate for a
fiscal year, by
``(bb) 100; and
``(ii) the quotient that results by
dividing--
``(I) the percentage of the program's
regular students, enrolled on at least
a half-time basis, who received a
covered loan for a 12-month period
ending during the 6 months immediately
preceding the fiscal year for which the
program's loan repayment rate or the
weighted average loan repayment rate is
determined, by
``(II) 100.
``(C) Data.--An institution shall provide the
Secretary with sufficient data to determine the
program's participation rate index not later than 30
days after receiving an initial notification of the
program's draft loan repayment rate under subsection
(d)(4)(C).
``(D) Notification.--Prior to publication of a final
loan repayment rate under subsection (d)(4)(A) for a
program at an institution that provides the data
described in subparagraph (C), the Secretary shall
notify the institution of the institution's compliance
or noncompliance with subparagraph (A).
``(b) Repayment Improvement and Assessment of Eligibility Based on
Low Loan Repayment Rates.--
``(1) First year.--
``(A) In general.--An institution with a program
whose loan repayment rate is less than 45 percent for
any fiscal year shall establish a repayment improvement
task force to prepare a plan to--
``(i) identify the factors causing such
program's loan repayment rate to fall below
such percent;
``(ii) establish measurable objectives and
the steps to be taken to improve the program's
loan repayment rate; and
``(iii) specify actions that the institution
can take to improve student loan repayment,
including appropriate counseling regarding loan
repayment options.
``(B) Technical assistance.--Each institution subject
to this paragraph shall submit the plan under
subparagraph (A) to the Secretary, who shall review the
plan and offer technical assistance to the institution
to promote improved student loan repayment.
``(2) Second consecutive year.--
``(A) In general.--An institution with a program
whose loan repayment rate is less than 45 percent for
two consecutive fiscal years, shall--
``(i) require the institution's repayment
improvement task force established under
paragraph (1) to review and revise the plan
required under such paragraph; and
``(ii) submit such revised plan to the
Secretary.
``(B) Review by the secretary.--The Secretary--
``(i) shall review each revised plan
submitted in accordance with this paragraph;
and
``(ii) may direct that such plan be amended
to include actions, with measurable objectives,
that the Secretary determines, based on
available data and analyses of student loan
repayment and non-repayment, will promote
student loan repayment.
``(c) Programmatic Loan Repayment Rate Defined.--
``(1) In general.--Except as provided in subsection (d), for
purposes of this section, the term `loan repayment rate' means,
when used with respect to an educational program at an
institution--
``(A) with respect to any fiscal year in which 30 or
more current and former students in such program enter
repayment on a covered loan received for attendance in
such program, the percentage of such current and former
students--
``(i) who enter repayment in such fiscal year
on a covered loan received for attendance in
such program; and
``(ii) who are in a positive repayment status
on each such covered loan at the end of the
second fiscal year following the fiscal year in
which such students entered repayment on such
loan; and
``(B) with respect to any fiscal year in which fewer
than 30 of the current and former students in such
program enter repayment on a covered loan received for
attendance in such program, the percentage of such
current and former students--
``(i) who, in any of the three most recent
fiscal years, entered repayment on a covered
loan received for attendance in such program;
and
``(ii) who are in a positive repayment status
on each such covered loan at the end of the
second fiscal year following the fiscal year in
which such students entered repayment on such
loan.
``(2) Guaranty agency requirements.--The Secretary shall
require that each guaranty agency that has insured loans for
current or former students of the institution afford such
institution a reasonable opportunity (as specified by the
Secretary) to review and correct errors in the information
required to be provided to the Secretary by the guaranty agency
for the purposes of calculating a loan repayment rate for
programs at such institution, prior to the calculation of such
rate.
``(3) Positive repayment status.--For purposes of this
section, the term `positive repayment status', when used with
respect to a borrower of a covered loan, means--
``(A) the borrower has entered repayment on such
loan, and such loan is less than 90 days delinquent;
``(B) the loan is paid in full (but not through
consolidation); or
``(C) with respect to a covered loan that is a
Federal ONE Loan, the loan is in a deferment described
in 469A(b)(1), and with respect to a covered loan made,
insured, or guaranteed under part B or made under part
D, the loan is in a deferment or forbearance that is
comparable to a deferment described in 469A(b)(1).
``(4) Covered loan.--For purposes of this section--
``(A) the term `covered loan' means--
``(i) a loan made, insured, or guaranteed
under section 428 or 428H;
``(ii) a Federal Direct Stafford Loan;
``(iii) a Federal Direct Unsubsidized
Stafford Loan;
``(iv) a Federal Direct PLUS Loan issued to a
graduate or professional student;
``(v) a Federal ONE Loan (other than a
Federal ONE Parent Loan or a Federal ONE
Consolidation Loan not described in clause
(vi)); or
``(vi) the portion of a loan made under
section 428C, a Federal Direct Consolidation
Loan, or a Federal ONE Consolidation Loan that
is used to repay any covered loan described in
clauses (i) through (v); and
``(B) the term `covered loan' does not include a loan
described in subparagraph (A) that has been discharged
under section 437(a).
``(d) Special Rules.--
``(1) In general.--In the case of a student who has attended
and borrowed at more than one institution of higher education
or for more than one educational program at an institution, the
student (and such student's subsequent positive repayment
status on a covered loan, if applicable)) shall be attributed
to each institution of higher education and educational program
for attendance at which the student received a loan that
entered repayment for the fiscal year for which the loan
repayment rate is being calculated.
``(2) Delinquent.--A loan on which a payment is made by an
institution of higher education, such institutions's owner,
agent, contractor, employee, or any other entity or individual
affiliated with such institution, in order to prevent the
borrower from being more than 90 days delinquent on the loan,
shall be considered more than 90 days delinquent for purposes
of this subsection.
``(3) Regulations to prevent evasions.--The Secretary shall
prescribe regulations designed to prevent an institution of
higher education from evading the application of a loan
repayment rate determination under this section to an
educational program at such institution through--
``(A) the use of such measures as branching,
consolidation, change of ownership or control, or any
similar device; or
``(B) creating a new educational program that is
substantially similar to a program determined to be
ineligible under subsection (a).
``(4) Collection and reporting of loan repayment rates.--
``(A) In general.--The Secretary shall publish not
less often than once every fiscal year a report showing
final loan repayment data for each program at each
institution of higher education for which a loan
repayment rate is calculated under this section.
``(B) Publication.--The Secretary shall publish the
report described in subparagraph (A) by September 30 of
each year.
``(C) Drafts.--
``(i) In general.--The Secretary shall
provide institutions with draft loan repayment
rates for each educational program at the
institution at least 6 months prior to the
release of the final rates under subparagraph
(A).
``(ii) Challenge of draft rates.--An
institution may challenge a program's draft
loan repayment rate provided under clause (i)
for any fiscal year by demonstrating to the
satisfaction of the Secretary that such draft
loan repayment rate is not accurate.
``(e) Transition Period.--
``(1) During the transition period.--During the transition
period, the cohort default rate for each institution of higher
education shall be calculated under section 435(m)(1) for each
fiscal year for which such rate has not yet been calculated and
any requirements with respect to such rates shall continue to
apply, except that the loans with respect to which such cohort
default rate shall be calculated shall be the covered loans
defined in subsection (c)(4).
``(2) After the transition period.--After the transition
period, no new cohort default rates shall be calculated for an
institution of higher education and any requirements with
respect to such rates shall cease to apply.
``(3) Definitions.--For purposes of this subsection--
``(A) the term `cohort default rate' has the meaning
given the term in section 435(m); and
``(B) the term `transition period' means the period--
``(i) beginning on the date of enactment of
the PROSPER Act; and
``(ii) ending on the date on which the
Secretary has published under subsection
(d)(4)(A) the final loan repayment rate for
each program at each institution of higher
education with respect to each of fiscal years
2016, 2017, and 2018.''.
SEC. 483. MASTER CALENDAR.
Section 482 (20 U.S.C. 1089) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking
``February 1'' and inserting ``January 15'';
(ii) in subparagraph (B), by striking ``March
1'' and inserting ``February 1'';
(iii) in subparagraph (C), by striking ``June
1'' and inserting ``May 1'';
(iv) in subparagraph (D), by striking
``August 15'' and inserting ``July 15'';
(v) by striking subparagraph (E), and
redesignating subparagraphs (F) and (G) as
subparagraphs (E) and (F), respectively; and
(vi) in subparagraph (E), as so redesignated,
by striking ``October 1'' and inserting
``September 1''; and
(vii) in subparagraph (F), as so
redesignated, by striking ``November 1'' and
inserting ``October 1'';
(B) in paragraph (2)--
(i) in subparagraph (F), by striking ``and
final Pell Grant payment schedule'';
(ii) in subparagraph (J), by striking ``June
1'' and inserting ``May 1'';
(iii) by redesignating subparagraphs (C)
through (J) as subparagraphs (D) through (K),
respectively; and
(iv) by inserting after subparagraph (B) the
following:
``(C) by November 1: final Pell Grant payment
schedule;''; and
(2) in subsection (b)--
(A) by striking ``413D(d), 442(d), or 462(i)'' and
inserting ``442(d)''; and
(B) by striking ``the programs under subpart 3 of
part A, part C, and part E, respectively'' and
inserting ``part C''.
SEC. 484. FAFSA SIMPLIFICATION.
(a) In General.--Section 483 (20 U.S.C. 1090) is amended--
(1) in subsection (a)(3)--
(A) in subparagraph (E), by adding at the end the
following: ``Notwithstanding the limitations on sharing
data described in this paragraph, an institution of
higher education may, with explicit written consent of
the applicant, provide such information as is necessary
to a scholarship granting organization designated by
the applicant to assist the applicant in applying for
and receiving financial assistance for the applicant's
education at that institution. An organization that
receives information pursuant to the preceding sentence
shall not maintain, warehouse, sell, or otherwise store
or share such information after it has been used to
determine the additional aid available for such
applicant and the organization shall destroy the
information after such determination has been made.'';
and
(B) by adding at the end the following:
``(I) Format.--Not later than 1 year after the date
of the enactment of the PROSPER Act, the Secretary
shall make the electronic version of the forms under
this paragraph available through a technology tool
optimized for use on mobile devices. Such technology
tool shall, at minimum, enable applicants to--
``(i) save data; and
``(ii) submit the FAFSA of such applicant to
the Secretary through such tool.
``(J) Consumer testing.--In developing and
maintaining the electronic version of the forms under
this paragraph and the technology tool for mobile
devices under subparagraph (I), the Secretary shall
conduct consumer testing with appropriate persons to
ensure the forms and technology tool are designed to be
easily usable and understandable by students and
families. Such consumer testing shall include--
``(i) current and prospective college
students, family members of such students, and
other individuals with expertise in student
financial assistance application processes;
``(ii) dependent students and independent
students who meet the requirements under
subsection (b) or (c) of section 479; and
``(iii) dependent students and independent
students who do not meet the requirements under
subsection (b) or (c) of section 479.''; and
(2) by amending subsection (f) to read as follows:
``(f) Use of Internal Revenue Service Data Retrieval Tool to Populate
FAFSA.--
``(1) Simplification efforts.--The Secretary shall--
``(A) make every effort to allow applicants to
utilize the current data retrieval tool to transfer,
through a rigorous authentication process, data
available from the Internal Revenue Service to reduce
the amount of original data entry by applicants and
strengthen the reliability of data used to calculate
expected family contributions, including through the
use of technology to--
``(i) allow an applicant to automatically
populate the electronic version of the forms
under this paragraph with data available from
the Internal Revenue Service; and
``(ii) direct an applicant to appropriate
questions on such forms based on the
applicant's answers to previous questions; and
``(B) allow single taxpayers, married taxpayers
filing jointly, and married taxpayers filing separately
to utilize the current data retrieval tool to its full
capacity.
``(2) Use of tax return in application process.--The
Secretary shall continue to examine whether data provided by
the Internal Revenue Service can be used to generate an
expected family contribution without additional action on the
part of the student and taxpayer.
``(3) Reports on fafsa simplification efforts.--Not less than
once every year, the Secretary shall report to the authorizing
committees on--
``(A) the progress of the simplification efforts
under this subsection; and
``(B) the security of the data retrieval tool.''.
(b) Technical Amendment.--Section 483(a)(9)(C) (20 U.S.C.
1090(a)(9)(C)) is amended by inserting ``, including through the tool
described in section 485E(c)'' before the semicolon.
SEC. 485. STUDENT ELIGIBILITY.
Section 484 (20 U.S.C. 1091) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``a degree,
certificate, or other program (including a program of
study abroad approved for credit by the eligible
institution at which such student is enrolled) leading
to a'' and inserting ``an eligible program (including a
program of study abroad approved for credit by the
eligible institution at which such student is enrolled)
leading to a degree, certificate, or other''; and
(B) in paragraph (3), by inserting ``as in effect on
the day before the date of enactment of the PROSPER Act
and pursuant to section 461(a) of such Act,'' after
``part E,'';
(2) in subsection (b)--
(A) in paragraph (3), by striking ``part B or D'' and
inserting ``part B, D, or E''; and
(B) by adding at the end the following:
``(6) For purposes of competency-based education, in order to be
eligible to receive any loan under this title for an award year, a
student may be enrolled in coursework attributable only to 2 academic
years within the award year.'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by inserting ``least as
frequently as'' before ``the end of
each''; and
(II) by striking ``, and'' at the end
and inserting a semicolon;
(ii) in subparagraph (B)--
(I) by striking ``the student has a
cumulative'' and inserting the
following: ``the student has--
``(i) a cumulative'';
(II) by striking ``the second'' and
inserting ``each'';
(III) by striking the period at the
end and inserting ``; or'' ; and
(IV) by adding at the end the
following:
``(ii) for the purposes of competency-based
programs, a non-grade equivalent demonstration
of academic standing consistent with the
requirements for graduation, as determined by
the institution, at the end of each such
academic year; and''; and
(iii) by adding at the end the following:
``(C) the student maintains a pace in his or her educational
program that--
``(i) ensures that the student completes the program
within the maximum timeframe; and
``(ii) is measured by a method determined by the
institution which may be based on credit hours, clock
hours, or competencies completed.'';
(B) in paragraph (2), by striking ``grading period''
and inserting ``evaluation period''; and
(C) by adding at the end the following:
``(4) For purposes of this subsection, the term `maximum timeframe'
means--
``(A) with respect to an undergraduate program measured in
credit hours, a period that is no longer than 150 percent of
the published length of the educational program, as measured in
credit hours;
``(B) with respect to an undergraduate program measured in
competencies, a period that is no longer than 150 percent of
the published length of the educational program, as measured in
competencies;
``(C) with respect to an undergraduate program measured in
clock hours, a period that is no longer than 150 percent of the
published length of the educational program, as measured by the
cumulative number of clock hours the student is required to
complete and expressed in calendar time; and
``(D) with respect to a graduate program, a period defined by
the institution that is based on the length of the educational
program.'';
(4) by amending subsection (d) to read as follows:
``(d) Additional Student Eligibility.--
``(1) Ability to benefit students.--In order for a student
who does not have a certificate of graduation from a school
providing secondary education, or the recognized equivalent of
such certificate, to be eligible for any assistance under
subpart 1 of part A and parts C, D, and E of this title, the
student shall be determined by the institution of higher
education as having the ability to benefit from the education
offered by the institution of higher education upon
satisfactory completion of 6 credit hours or the equivalent
coursework that are applicable toward a degree or certificate
offered by the institution of higher education.
``(2) Homeschool students.--A student who has completed a
secondary school education in a home school setting that is
treated as a home school or private school under State law
shall be eligible for assistance under subpart 1 of part A and
parts C, D, and E of this title.
``(3) Secondary education provided by nonprofit
corporations.--A student who has completed a secondary
education provided by a school operating as a nonprofit
corporation that offers a program of study determined
acceptable for admission at an institution of higher education
shall be eligible for assistance under subpart 1 of part A and
parts C, D, and E of this title.''.
(5) in subsection (f)(1), by striking ``or part E'' both
places it appears and inserting the following: ``, part E (as
in effect on the day before the date of enactment of the
PROSPER Act and pursuant to section 461(a) of such Act), or
part E (as in effect on or after the date of enactment of the
PROSPER Act)'';
(6) by striking subsection (l);
(7) in subsection (n)--
(A) by striking ``(n) Data Base Matching.--To
enforce''; and inserting the following:
``(n) Selective Service Registration.--
``(1) Data base matching.--To enforce''; and
(B) by adding at the end the following:
``(2) Effect of failure to register for selective service.--A
person who is 26 years of age or older shall not be ineligible
for assistance or a benefit provided under this title by reason
of failure to present himself for, and submit to, registration
under section 3 of the Military Selective Service Act (50
U.S.C. 3802).''; and
(8) by redesignating subsections (m) through (t) as
subsections (l) through (s).
SEC. 486. STATUTE OF LIMITATIONS.
Section 484A (20 U.S.C. 1088) is amended--
(1) in subsection (a)(2)(C)--
(A) by striking ``or 463(a)'' and inserting ``,
section 463(a) (as in effect on the day before the date
of enactment of the PROSPER Act and pursuant to section
461(a) of such Act), or section 463 (as in effect on or
after the date of enactment of the PROSPER Act)''; and
(B) by striking ``or E'' and inserting ``, E (as in
effect on the day before the date of enactment of the
PROSPER Act and pursuant to section 461(a) of such
Act), or E (as in effect on or after the date of
enactment of the PROSPER Act)''; and
(2) in subsection (b)--
(A) by striking ``and'' at the end of paragraph (2);
(B) in paragraph (3)--
(i) by inserting ``(as in effect on the day
before the date of enactment of the PROSPER Act
and pursuant to section 461(a) of such Act)''
after ``part E'';
(ii) by inserting ``(as so in effect)'' after
``section 463(a)''; and
(iii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(4) in collecting any obligation arising from a loan made
under part E (as in effect on or after the date of enactment of
the PROSPER Act), an institution of higher education that has
an agreement with the Secretary pursuant to section 463(a) (as
so in effect) shall not be subject to a defense raised by any
borrower based on a claim of infancy.''.
SEC. 487. INSTITUTIONAL REFUNDS.
Section 484B (20 U.S.C. 1091b) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``If a recipient'' and
inserting the following:
``(A) Consequence of withdrawal.--If a recipient'';
and
(ii) by adding at the end the following:
``(B) Special rule.--For purposes of subparagraph
(A), a student--
``(i) who is enrolled in a program offered in
modules is not considered withdrawn if the
change in the student's attendance constitutes
a change in enrollment status within the
payment period rather than a discontinuance of
attendance within the payment period; and
``(ii) is considered withdrawn if the student
follows the institution's official withdrawal
procedures or leaves without notifying the
institution and has not returned before the end
of the payment period.'';
(B) in paragraph (3)--
(i) in subparagraph (B), by striking clauses
(i) and (ii) and inserting the following:
``(i) 0 percent, if the day the student
withdrew occurs when the student has completed
(as determined in accordance with subsection
(d)) 0 to 24 percent of the payment period or
period of enrollment;
``(ii) 25 percent, if the day the student
withdrew occurs when the student has completed
(as determined in accordance with subsection
(d)) 25 to 49 percent of the payment period or
period of enrollment;
``(iii) 50 percent, if the day the student
withdrew occurs when the student has completed
(as determined in accordance with subsection
(d)) 50 to 74 percent of the payment period or
period of enrollment; or
``(iv) 75 percent, if the day the student
withdrew occurs when the student has completed
(as determined in accordance with subsection
(d)) 75 to 99 percent of the payment period or
period of enrollment.''.
(ii) in subparagraph (C)(i), by striking
``subparts 1 and 3 of part A, or loan
assistance under parts B, D,'' and inserting
``subpart 1 of part A or loan assistance under
parts D''; and
(C) in paragraph (4)--
(i) in subparagraph (A), by striking
``Secretary), the institution of higher
education shall contact the borrower'' and
inserting ``Secretary), the institution of
higher education shall have discretion to
determine whether all or a portion of the late
or post-withdrawal disbursement should be made,
under a publicized institutional policy. If the
institution of higher education determines that
a disbursement should be made, the institution
shall contact the borrower''; and
(ii) in subparagraph (B) by striking
``institution or the student, or both, as may
be required under paragraphs (1) and (2) of
subsection (b), to the programs under this
title in the order specified in'' and inserting
``institution, as may be required under
paragraph (1) of subsection (b), to the
programs under this title in accordance with'';
(2) by amending subsection (b) to read as follows:
``(b) Return of Title IV Program Funds.--
``(1) Responsibility of the institution.--The institution
shall return not later than 60 days from the determination of
withdrawal, in accordance with paragraph (3), the amount of
grant and loan assistance awarded under this title that has not
been earned by the student, as calculated under subsection
(a)(3)(C).
``(2) Responsibility of the student.--
``(A) In general.--The student is not responsible to
return assistance that has not been earned, except that
the institution may require the student to pay to the
institution up to 10 percent of the amount owed by the
institution in paragraph (1).
``(B) Rule of construction.--Nothing in this section
shall be construed to prevent an institution from
enforcing the published institutional refund policies
of such institution.
``(3) Order of return of title iv funds.--
``(A) In general.--Excess funds returned by the
institution in accordance with paragraph (1) shall be
credited to awards under subpart 1 of part A for the
payment period or period of enrollment for which a
return of funds is required.
``(B) Remaining excesses.--If excess funds remain
after repaying all outstanding grant amounts, the
remaining excess shall be credited in the following
order:
``(i) To outstanding balances on loans made
under this title to the student or on behalf of
the student for the payment period or period of
enrollment for which a return of funds is
required.
``(ii) To other assistance awarded under this
title for which a return of funds is
required.'';
(3) by amending subsection (c) to read as follows:
``(c) Withdrawal Date.--
``(1) In general.--In this section, the term `day the student
withdrew'--
``(A) for institutions not required to take
attendance, is the date as determined by the
institution that--
``(i) the student began the withdrawal
process prescribed and publicized by the
institution, or a later date if the student
continued attendance despite beginning the
withdrawal process, but did not then complete
the payment period; or
``(ii) in the case of a student who does not
begin the withdrawal process, the date that is
the mid-point of the payment period for which
assistance under this title was disbursed or
another date documented by the institution; or
``(B) for institutions required to take attendance,
is determined by the institution from such attendance
records.
``(2) Special rule.--Notwithstanding paragraph (1), if the
institution determines that a student did not begin the
withdrawal process, due to illness, accident, grievous personal
loss, or other such circumstances beyond the student's control,
the institution may determine the appropriate withdrawal date
under its own defined policies.
``(3) Attendance.--An institution is required to take
attendance if an institution's accrediting agency or State
licensing agency has a requirement that the institution take
attendance for all students in an academic program throughout
the entire payment period.''; and
(4) by striking subsections (d) and (e).
SEC. 488. INFORMATION DISSEMINATED TO PROSPECTIVE AND ENROLLED
STUDENTS.
(a) Use of Website to Disseminate Information.--Section 485(a)(1) (20
U.S.C. 1092(a)(1)) is amended in the matter preceding subparagraph (A)
by striking the second and third sentences and inserting the following:
``The information required by this section shall be produced and be
made readily available to enrolled and prospective students on the
institution's website (or in other formats upon request).''.
(b) Information on Prohibiting Copyright Infringement.--Section
485(a)(1)(P) (20 U.S.C. 1092(a)(1)(P)) is amended by striking ``,
including--'' and all that follows and inserting a period.
(c) Elimination of Certain Reporting Requirements.--
(1) In general.--Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is
amended--
(A) by striking subparagraph (L);
(B) by redesignating subparagraphs (M) through (P) as
subparagraphs (L) through (O); and
(C) by striking subparagraphs (Q) through (V) and
inserting the following:
``(P) the fire safety report prepared by the
institution pursuant to subsection (i); and
``(Q) the link to the institution's information on
the College Dashboard website operated under section
132.''.
(2) Conforming amendments.--Section 485(a) (20 U.S.C.
1092(a)) is amended by striking paragraphs (3) through (7).
(d) Exit Counseling.--Section 485(b) (20 U.S.C. 1092(b)) is amended--
(1) in paragraph (1)(A)--
(A) in the matter preceding clause (i)--
(i) by striking ``through financial aid
offices or otherwise'' and inserting ``through
the use of an interactive program, during an
exit counseling session that is in-person or
online, or through the use of the online
counseling tool described in subsection
(n)(1)(A)''; and
(ii) by inserting ``, as in effect on the day
before the date of enactment of the PROSPER Act
and pursuant to section 461(a) of such Act or
made under part E (other than Federal ONE
Parent Loans), as in effect on or after the
date of enactment of the PROSPER Act'' after
``part E'';
(B) by redesignating clauses (i) through (ix) as
clauses (iv) through (xii), respectively;
(C) by inserting before clause (iv), as so
redesignated, the following:
``(i) a summary of the outstanding balance of principal and
interest due on the loans made to the borrower under this
title;
``(ii) an explanation of the grace period preceding repayment
and the expected date that the borrower will enter repayment;
``(iii) an explanation of cases of interest capitalization
and that the borrower has the option to pay any interest that
has accrued while the borrower was in school or that may accrue
during the grace period preceding repayment or during an
authorized period of deferment or forbearance, prior to the
capitalization of the interest;'';
(D) in clause (iv), as so redesignated--
(i) by striking ``sample information showing
the average'' and inserting ``information,
based on the borrower's outstanding balance
described in clause (i), showing the
borrower's''; and
(ii) by striking ``of each plan'' and
inserting ``of at least the standard repayment
plan and the income-based repayment plan under
section 466(d)'';
(E) in clause (ix), as so redesignated--
(i) by inserting ``decreased credit score,''
after ``credit reports,''; and
(ii) by inserting ``potential reduced ability
to rent or purchase a home or car, potential
difficulty in securing employment,'' after
``Federal law,'';
(F) in clause (x), as so redesignated, by striking
``consolidation loan under section 428C or a'';
(G) in clauses (xi) and (xii), as so redesignated, by
striking ``and'' at the end; and
(H) by adding at the end the following:
``(xiii) for each of the borrower's loans made under this
title for which the borrower is receiving counseling under this
subsection, the contact information for the servicer of the
loan and a link to the Website of such servicer; and
``(xiv) an explanation that an individual has a right to
annually request a disclosure of information collected by a
consumer reporting agency pursuant to section 612(a) of the
Fair Credit Reporting Act (15 U.S.C. 1681j(a)).'';
(2) in paragraph (1)(B)--
(A) by inserting ``online or'' before ``in writing'';
and
(B) by adding before the period at the end the
following: ``, except that in the case of an
institution using the online counseling tool described
in subsection (n)(1)(A), the Secretary shall attempt to
provide such information to the student in the manner
described in subsection (n)(3)(C)''; and
(3) in paragraph (2)(C), by inserting ``, such as the online
counseling tool described in subsection (n)(1)(A),'' after
``electronic means''.
(e) Departmental Publication of Descriptions of Assistance
Programs.--The third sentence of section 485(d)(1) (20 U.S.C.
1092(d)(1)) is amended by striking ``part D'' and inserting ``part D or
E''.
(f) Amendments to Clery Act.--
(1) Preventing interference with criminal justice
proceedings; timely warnings; consistency of institutional
crime reporting.--Section 485(f) (20 U.S.C. 1092(f)) is
amended--
(A) by striking paragraph (3) and inserting the
following:
``(3) Each institution participating in any program under
this title, other than a foreign institution of higher
education, shall make timely reports to the campus community on
crimes described in paragraph (1)(F) that have been reported to
campus security officials and pose a serious and continuing
threat to other students and employees' safety. Such reports
shall withhold the names of victims as confidential and shall
be provided in a timely manner, except that an institution may
delay issuing a report if the issuance would compromise ongoing
law enforcement efforts, such as efforts to apprehend a
suspect. The report shall also include information designed to
assist students and employees in staying safe and avoiding
similar occurrences to the extent such information is available
and appropriate to include. In assessing institutional
compliance with this section, the Secretary shall defer to the
institution's determination of whether a particular crime poses
a serious and continuing threat to the campus community, and
the timeliness of such warning, provided that, in making its
decision, the institution acted reasonably and based on the
considered professional judgement of campus security officials,
based on the facts and circumstances known at the time.'';
(B) by redesignating paragraph (18) as paragraph
(20); and
(C) by inserting after paragraph (17) the following:
``(18) Nothing in this subsection may be construed to prohibit an
institution of higher education from delaying the initiation of, or
suspending, an investigation or institutional disciplinary proceeding
involving an allegation of sexual assault in response to a request from
a law enforcement agency or a prosecutor to delay the initiation of, or
suspend, the investigation or proceeding, and any delay or suspension
of such an investigation or proceeding in response to such a request
may not serve as the grounds for any sanction or audit finding against
the institution or for the suspension or termination of the
institution's participation in any program under this title.
``(19)(A) Reporting carried out under this subsection shall be
conducted in a manner to ensure maximum consistency with the Uniform
Crime Reporting Program of the Department of Justice.
``(B) The Secretary shall require institutions of higher education to
report crime statistics under this section using definitions of such
crimes, when available, from the Uniform Crime Reporting Program of the
Department of Justice.
``(C) The Secretary shall maintain a publicly available and updated
list of all applicable definitions from the Uniform Crime Reporting
Program of the Department of Justice.
``(D) With respect to a report under this subsection, in the case of
a crime for which no Uniform Crime Reporting Program of the Department
of Justice definition exists, the Secretary shall require that
institutions of higher education report such crime according to a
definition provided by the Secretary.
``(E) An institution of higher education that reports a crime
described in subparagraph (D) shall not be subject to any penalty or
fine for reporting inaccuracies or omissions if the institution of
higher education can demonstrate that it made a reasonable and good
faith effort to report crimes consistent with the definition provided
by the Secretary.
``(F) With respect to a report under this subsection, the Secretary
shall require institutions of higher education to follow the Hierarchy
Rule for reporting crimes under the Uniform Crime Reporting Program of
the Department of Justice, so as to minimize duplicate reporting and
ensure greater consistency with national crime reporting systems.''.
(2) Due process requirements for institutional disciplinary
proceedings.--Section 485(f)(8)(B)(iv)(I) (20 U.S.C.
1092(f)(8)(B)(iv)(I)) is amended to read as follows:
``(I) the investigation of the allegation and
any institutional disciplinary proceeding in
response to the allegation shall be prompt,
impartial, and fair to both the accuser and the
accused by, at a minimum--
``(aa) providing all parties to the
proceeding with adequate written notice
of the allegation not later than 2
weeks prior to the start of any formal
hearing or similar adjudicatory
proceeding, and including in such
notice a description of all rights and
responsibilities under the proceeding,
a statement of all relevant details of
the allegation, and a specific
statement of the sanctions which may be
imposed;
``(bb) providing each person against
whom the allegation is made with a
meaningful opportunity to admit or
contest the allegation;
``(cc) ensuring that all parties to
the proceeding have access to all
material evidence not later than one
week prior to the start of any formal
hearing or similar adjudicatory
proceeding;
``(dd) ensuring that the proceeding
is carried out free from conflicts of
interest by ensuring that there is no
commingling of administrative or
adjudicative roles; and
``(ee) ensuring that the
investigation and proceeding shall be
conducted by officials who receive
annual education on issues related to
domestic violence, dating violence,
sexual assault, and stalking, and on
how to conduct an investigation and an
institutional disciplinary proceeding
that protects the safety of victims,
ensures fairness for both the accuser
and the accused, and promotes
accountability;''.
(3) Establishment of standard of evidence for institutional
disciplinary proceedings.--
(A) Inclusion in statement of policy.--Section
485(f)(8)(B) (20 U.S.C. 1092(f)(8)(B)) is amended by
adding at the end the following new clause:
``(viii) The establishment of a standard of evidence that
will be used in institutional disciplinary proceedings
involving allegations of sexual assault, which may be based on
such standards and criteria as the institution considers
appropriate (including the institution's culture, history, and
mission, the values reflected in its student code of conduct,
and the purpose of the institutional disciplinary proceedings)
so long as the standard is not arbitrary or capricious and is
applied consistently throughout all such proceedings.''.
(B) Conforming amendments.--Section 485(f)(8)(B)(iv)
(20 U.S.C. 1092(f)(8)(B)(iv)) is amended--
(i) by striking ``and'' at the end of
subclause (II);
(ii) by striking the period at the end of
subclause (III) and inserting ``; and''; and
(iii) by adding at the end the following new
subclause:
``(IV) in the case of a proceeding involving an
allegation of sexual assault, such proceedings shall be
conducted in accordance with the standard of evidence
established by the institution under clause (viii),
together with a clear statement describing such
standard of evidence.''.
(4) Education modules for officials conducting investigations
and institutional disciplinary proceedings.--Section 485(f)(8)
(20 U.S.C. 1092(f)(8)) is amended by adding at the end the
following new subparagraph:
``(D) In consultation with experts from institutions of higher
education, law enforcement agencies, advocates for sexual assault
victims, experts in due process, and other appropriate persons, the
Secretary shall create and regularly update modules which an
institution of higher education may use to provide the annual education
described in subparagraph (B)(iv)(I)(ee) for officials conducting
investigations and institutional disciplinary proceedings involving
allegations described in such subparagraph. If the institution uses
such modules to provide the education described in such subparagraph,
the institution shall be considered to meet any requirement under such
subparagraph or any other Federal law regarding the education provided
to officials conducting such investigations and proceedings.''.
(g) Modification of Certain Reporting Requirements.--
(1) Fire safety.--Section 485(i) (20 U.S.C. 1092(i)) is
amended to read as follows:
``(i) Fire Safety Reports.--
``(1) Annual report.--Each eligible institution participating
in any program under this title that maintains on-campus
student housing facilities shall, on an annual basis, publish a
fire safety report, which shall contain information with
respect to the campus fire safety practices and standards of
that institution, statistics on any fire related incidents or
injuries, and any preventative measures or technologies.
``(2) Rules of construction.--Nothing in this subsection
shall be construed to--
``(A) authorize the Secretary to require particular
policies, procedures, programs, or practices by
institutions of higher education with respect to fire
safety;
``(B) affect section 444 of the General Education
Provisions Act (commonly known as the `Family Education
Rights and Privacy Act of 1974') or the regulations
issued under section 264 of the Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C.
1320d-2 note);
``(C) create a cause of action against any
institution of higher education or any employee of such
an institution for any civil liability; or
``(D) establish any standard of care.
``(3) Evidence.--Notwithstanding any other provision of law,
evidence regarding compliance or noncompliance with this
subsection shall not be admissible as evidence in any
proceeding of any court, agency, board, or other entity, except
with respect to an action to enforce this subsection.''.
(2) Missing persons procedures.--
(A) In general.--Section 485(j)(1) (20 U.S.C.
1092(j)(1)) is amended to read as follows:
``(1) In general.--Each institution of higher education that
provides on-campus housing and participates in any program
under this title shall establish a missing student policy for
students who reside in on-campus housing that, at a minimum,
informs each residing student that the institution will notify
such student's designated emergency contact and the appropriate
law enforcement agency not later than 24 hours after the time
that the student is determined missing, and in the case of a
student who is under 18 years of age, the institution will
notify a custodial parent or guardian.''.
(B) Rule of construction.--Section 485(j)(2) (20
U.S.C. 1092(j)(2)) is amended--
(i) by striking ``or'' at the end of
subparagraph (A);
(ii) by striking the period at the end of
subparagraph (B) and inserting ``; or''; and
(iii) by adding at the end the following new
subparagraph:
``(C) to require an institution of higher education
to maintain separate missing student emergency contact
information, so long as the institution otherwise has
an emergency contact for students residing on
campus.''.
(h) Annual Counseling.--Section 485(l) (20 U.S.C. 1092(l)) is amended
to read as follows:
``(l) Annual Financial Aid Counseling.--
``(1) Annual disclosure required.--
``(A) In general.--Each eligible institution shall
ensure, and annually affirm to the Secretary, that each
individual enrolled at such institution who receives a
Federal Pell Grant or a loan made under this title
(other than a Federal Direct Consolidation Loan or
Federal ONE Consolidation Loan) receives comprehensive
information on the terms and conditions of such Federal
Pell Grant or loan and the responsibilities the
individual has with respect to such Federal Pell Grant
or loan. Such information shall be provided, for each
award year for which the individual receives such
Federal Pell Grant or loan, in a simple and
understandable manner--
``(i) during a counseling session conducted
in person;
``(ii) online, with the individual
acknowledging receipt of the information; or
``(iii) through the use of the online
counseling tool described in subsection
(n)(1)(B).
``(B) Use of interactive programs.--In the case of
institutions not using the online counseling tool
described in subsection (n)(1)(B), the Secretary shall
require such institutions to carry out the requirements
of subparagraph (A)--
``(i) through the use of interactive
programs;
``(ii) during an annual counseling session
that is in-person or online that tests the
individual's understanding of the terms and
conditions of the Federal Pell Grant or loan
awarded to the student; and
``(iii) using simple and understandable
language and clear formatting.
``(2) All individuals.--The information to be provided under
paragraph (1) to each individual receiving counseling under
this subsection shall include the following:
``(A) An explanation of how the student may budget
for typical educational expenses and a sample budget
based on the cost of attendance for the institution.
``(B) An explanation that an individual has a right
to annually request a disclosure of information
collected by a consumer reporting agency pursuant to
section 612(a) of the Fair Credit Reporting Act (15
U.S.C. 1681j(a)).
``(C) Based on the most recent data available from
the American Community Survey available from the
Department of Commerce, the estimated average income
and percentage of employment in the State of domicile
of the borrower for persons with--
``(i) a high school diploma or equivalent;
``(ii) some post-secondary education without
completion of a degree or certificate;
``(iii) an associate's degree;
``(iv) a bachelor's degree; and
``(v) a graduate or professional degree.
``(D) An introduction to the financial management
resources provided by the Financial Literacy and
Education Commission.
``(3) Students receiving federal pell grants.--The
information to be provided under paragraph (1) to each student
receiving a Federal Pell Grant shall include the following:
``(A) An explanation of the terms and conditions of
the Federal Pell Grant.
``(B) An explanation of approved educational expenses
for which the student may use the Federal Pell Grant.
``(C) An explanation of why the student may have to
repay the Federal Pell Grant.
``(D) An explanation of the maximum number of
semesters or equivalent for which the student may be
eligible to receive a Federal Pell Grant, and a
statement of the amount of time remaining for which the
student may be eligible to receive a Federal Pell
Grant.
``(E) An explanation that if the student transfers to
another institution not all of the student's courses
may be acceptable to apply toward meeting specific
degree or program requirements at such institution, but
the amount of time remaining for which a student may be
eligible to receive a Federal Pell Grant, as provided
under subparagraph (D), will not change.
``(F) An explanation of how the student may seek
additional financial assistance from the institution's
financial aid office due to a change in the student's
financial circumstances, and the contact information
for such office.
``(4) Borrowers receiving loans made this title (other than
federal direct plus loans made on behalf of dependent students
or federal one parent loans).--The information to be provided
under paragraph (1) to a borrower of a loan made under this
title (other than other than a Federal Direct PLUS Loan made on
behalf of a dependent student or a Federal ONE Parent Loan)
shall include the following:
``(A) To the extent practicable, the effect of
accepting the loan to be disbursed on the eligibility
of the borrower for other forms of student financial
assistance.
``(B) An explanation of the use of the master
promissory note.
``(C) An explanation that the borrower is not
required to accept the full amount of the loan offered
to the borrower.
``(D) An explanation that the borrower should
consider accepting any grant, scholarship, or State or
Federal work-study jobs for which the borrower is
eligible prior to accepting Federal student loans.
``(E) An explanation of treatment of loans made under
this title and private education loans in bankruptcy,
and an explanation that if a borrower decides to take
out a private education loan--
``(i) the borrower has the ability to select
a private educational lender of the borrower's
choice;
``(ii) the proposed private education loan
may impact the borrower's potential eligibility
for other financial assistance, including
Federal financial assistance under this title;
and
``(iii) the borrower has a right--
``(I) to accept the terms of the
private education loan within 30
calendar days following the date on
which the application for such loan is
approved and the borrower receives the
required disclosure documents, pursuant
to section 128(e)(6) of the Truth in
Lending Act; and
``(II) to cancel such loan within 3
business days of the date on which the
loan is consummated, pursuant to
section 128(e)(7) of such Act.
``(F) An explanation of the approved educational
expenses for which the borrower may use a loan made
under this title.
``(G) Information on the annual and aggregate loan
limits for a loan made under this title.
``(H) Information on interest, including the annual
percentage rate of such loan, as calculated using the
standard 10-year repayment term, and how interest
accrues and is capitalized during periods when the
interest is not paid by the borrower.
``(I) The option of the borrower to pay the interest
while the borrower is in school.
``(J) The definition of half-time enrollment at the
institution, during regular terms and summer school, if
applicable, and the consequences of not maintaining at
least half-time enrollment.
``(K) An explanation of the importance of contacting
the appropriate offices at the institution of higher
education if the borrower withdraws prior to completing
the borrower's program of study so that the institution
can provide exit counseling, including information
regarding the borrower's repayment options and loan
consolidation.
``(L) For a first-time borrower or a borrower of a
loan under this title who owes no principal or interest
on such loan--
``(i) a statement of the anticipated balance
on the loan for which the borrower is receiving
counseling under this subsection;
``(ii) based on such anticipated balance, the
anticipated monthly payment amount under, at
minimum--
``(I) the standard repayment plan;
and
``(II) an income-based repayment plan
under section 466(d) or 493C, as
determined using available percentile
data from the Bureau of Labor
Statistics of the starting salary for
the occupation in which the borrower
has an interest in or intends to be
employed; and
``(iii) an estimate of the projected monthly
payment amount under each repayment plan
described in clause (ii), based on the average
cumulative indebtedness at graduation for
borrowers of loans made under this title who
are in the same program of study as the
borrower.
``(M) For a borrower with an outstanding balance of
principal or interest due on a loan made under this
title--
``(i) a current statement of the amount of
such outstanding balance and interest accrued;
``(ii) based on such outstanding balance, the
anticipated monthly payment amount under the
standard repayment plan, and the income-based
repayment plan under section 466(d) or 493C, as
determined using available percentile data from
the Bureau of Labor Statistics of the starting
salary for the occupation the borrower intends
to be employed; and
``(iii) an estimate of the projected monthly
payment amount under each repayment plan
described in clause (ii), based on--
``(I) the outstanding balance
described in clause (i);
``(II) the anticipated outstanding
balance on the loan for which the
student is receiving counseling under
this subsection; and
``(III) a projection for any other
loans made under this title that the
borrower is reasonably expected to
accept during the borrower's program of
study based on at least the expected
increase in the cost of attendance of
such program.
``(N) The obligation of the borrower to repay the
full amount of the loan, regardless of whether the
borrower completes or does not complete the program in
which the borrower is enrolled within the regular time
for program completion.
``(O) The likely consequences of default on the loan,
including adverse credit reports, delinquent debt
collection procedures under Federal law, and
litigation, and a notice of the institution's most
recent loan repayment rate (as defined in section 481B)
for the educational program in which the borrower is
enrolled, an explanation of the loan repayment rate,
and the most recent national average loan repayment
rate for an educational program.
``(P) Information on the National Student Loan Data
System and how the borrower can access the borrower's
records.
``(Q) The contact information for the institution's
financial aid office or other appropriate office at the
institution the borrower may contact if the borrower
has any questions about the borrower's rights and
responsibilities or the terms and conditions of the
loan.
``(5) Borrowers receiving federal direct plus loans for
dependent students or federal one parent loans.--The
information to be provided under paragraph (1) to a borrower of
a Federal Direct PLUS Loan for a dependent student or a Federal
ONE Parent Loan shall include the following:
``(A) The information described in subparagraphs (A)
through (C) and (N) through (Q) of paragraph (4).
``(B) An explanation of the treatment of the loan and
private education loans in bankruptcy.
``(C) Information on the annual and aggregate loan
limits.
``(D) Information on the annual percentage rate of
the loan.
``(E) The option of the borrower to pay the interest
on the loan while the loan is in deferment.
``(F) For a first-time borrower of a loan or a
borrower of a loan under this title who owes no
principal or interest on such loan--
``(i) a statement of the anticipated balance
on the loan for which the borrower is receiving
counseling under this subsection;
``(ii) based on such anticipated balance, the
anticipated monthly payment amount under the
standard repayment plan; and
``(iii) an estimate of the projected monthly
payment amount under the standard repayment
plan, based on the average cumulative
indebtedness of other borrowers of loans made
under this title on behalf of dependent
students who are in the same program of study
as the student on whose behalf the borrower
borrowed the loan.
``(G) For a borrower with an outstanding balance of
principal or interest due on such loan--
``(i) a statement of the amount of such
outstanding balance;
``(ii) based on such outstanding balance, the
anticipated monthly payment amount under the
standard repayment plan; and
``(iii) an estimate of the projected monthly
payment amount under the standard repayment
plan, based on--
``(I) the outstanding balance
described in clause (i);
``(II) the anticipated outstanding
balance on the loan for which the
borrower is receiving counseling under
this subsection; and
``(III) a projection for any other
Federal Direct PLUS Loan made on behalf
of the dependent student or Federal ONE
Parent Loan that the borrower is
reasonably expected to accept during
the program of study of such student
based on at least the expected increase
in the cost of attendance of such
program.
``(H) Debt management strategies that are designed to
facilitate the repayment of such indebtedness.
``(I) An explanation that the borrower has the
options to prepay each loan, pay each loan on a shorter
schedule, and change repayment plans.
``(J) For each Federal Direct PLUS Loan and each
Federal ONE Parent Loan for which the borrower is
receiving counseling under this subsection, the contact
information for the loan servicer of the loan and a
link to such servicer's Website.
``(6) Annual loan acceptance.--Prior to making the first
disbursement of a loan made under this title (other than a
Federal Direct Consolidation Loan or Federal ONE Consolidation
Loan) to a borrower for an award year, an eligible institution,
shall, as part of carrying out the counseling requirements of
this subsection for the loan, ensure that after receiving the
applicable counseling under paragraphs (2), (4), and (5) for
the loan the borrower accepts the loan for such award year by--
``(A) signing the master promissory note for the
loan;
``(B) signing and returning to the institution a
separate written statement that affirmatively states
that the borrower accepts the loan; or
``(C) electronically signing an electronic version of
the statement described in subparagraph (B).
``(7) Prohibition.--An institution of higher education may
not counsel a borrower of a loan under this title to divorce or
separate and live apart from one another for the purpose of
qualifying for, or obtaining an increased amount of, Federal
financial assistance under this Act.
``(8) Construction.--Nothing in this section shall be
construed to prohibit an eligible institution from providing
additional information and counseling services to recipients of
Federal student aid under this title.''.
(i) Online Counseling Tools.--Section 485 (20 U.S.C. 1092) is further
amended by adding at the end the following:
``(n) Online Counseling Tools.--
``(1) In general.--Beginning not later than 1 year after the
date of enactment of the PROSPER Act, the Secretary shall
maintain--
``(A) an online counseling tool that provides the
exit counseling required under subsection (b) and meets
the applicable requirements of this subsection; and
``(B) an online counseling tool that provides the
annual counseling required under subsection (l) and
meets the applicable requirements of this subsection.
``(2) Requirements of tools.--In maintaining the online
counseling tools described in paragraph (1), the Secretary
shall ensure that each such tool is--
``(A) consumer tested to ensure that the tool is
effective in helping individuals understand their
rights and obligations with respect to borrowing a loan
made this title or receiving a Federal Pell Grant;
``(B) understandable to students receiving Federal
Pell Grants and borrowers of loans made this title; and
``(C) freely available to all eligible institutions.
``(3) Record of counseling completion.--The Secretary shall--
``(A) use each online counseling tool described in
paragraph (1) to keep a record of which individuals
have received counseling using the tool, and notify the
applicable institutions of the individual's completion
of such counseling;
``(B) in the case of a borrower who receives annual
counseling for a loan made under this title using the
tool described in paragraph (1)(B), notify the borrower
by when the borrower should accept, in a manner
described in subsection (l)(6), the loan for which the
borrower has received such counseling; and
``(C) in the case of a borrower described in
subsection (b)(1)(B) at an institution that uses the
online counseling tool described in paragraph (1)(A) of
this subsection, the Secretary shall attempt to provide
the information described in subsection (b)(1)(A) to
the borrower through such tool.''.
(j) Preventing Hazing on Campus.--Section 485 (20 U.S.C. 1092) is
further amended by adding at the end the following:
``(o) Preventing Hazing on Campus.--
``(1) Sense of congress.--It is the Sense of Congress that--
``(A) institutions of higher education should have
clear policies that prohibit unsafe practices, such as
hazing, on campus;
``(B) institutions of higher education should ensure
each student organization understands what is
considered an unsafe practice;
``(C) student organizations on campus should ensure
their policies and activities do not endanger students
safety or cause harm to students;
``(D) administrators and faculty should take
seriously any threats or acts of harm to students
through activities organized by student organizations
and act quickly to prevent any potential harm to
students by these groups;
``(E) institutions of higher education should ensure
law enforcement has access to investigate any crimes
committed by student organizations without obstruction
from the students, student organization,
administrators, or faculty; and
``(F) hazing is a dangerous practice and should not
be allowed on any campus.
``(2) Disclosure of policies.--Each institution of higher
education participating in any program under this title shall
ensure that--
``(A) all policies and required procedures related to
hazing are clearly posted for students, faculty, and
administrators; and
``(B) all student organizations are aware of--
``(i) the policies described in subparagraph
(A), including all prohibited activities; and
``(ii) the dangers of hazing.
``(3) Hazing defined.--In this subsection, the term `hazing'
means any intentional, knowing, or reckless act committed by a
student, or a former student, of an institution of higher
education, whether individually or with other persons, against
another student, that--
``(A) was committed in connection with an initiation
into, an affiliation with, or the maintenance of
membership in, any organization that is affiliated with
such institution of higher education; and
``(B)(i) contributes to a substantial risk of
physical injury, mental harm, or personal degradation;
or
``(ii) causes physical injury, mental harm or
personal degradation.''.
SEC. 489. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.
Section 485E (20 U.S.C. 1092f) is amended--
(1) in subsection (b)--
(A) in paragraph (2)--
(i) strike ``The Secretary,'' and insert ``To
improve the financial and economic literacy of
students and parents of students in order to
make informed decisions with respect to
financing postsecondary education, the
Secretary,'';
(ii) by striking ``junior year'' and
inserting ``sophomore year'';
(iii) by striking ``The Secretary shall
ensure that'' and inserting ``The Secretary
shall--
``(A) ensure that''; and
(iv) by adding at the end the following:
``(B) create an online platform--
``(i) for States, institutions of higher
education, other organizations involved in
college access and student financial aid,
secondary schools, and programs under this
title that serve secondary school students to
share best practices on disseminating
information under this section; and
``(ii) on which the Secretary shall
annually--
``(I) summarize such best practices;
and
``(II) describe the notification and
dissemination activities carried out
under this section.''.
(B) in paragraph (4)--
(i) in the first sentence--
(I) by striking ``Not later than two
years after the date of enactment of
the Higher Education Opportunity Act,
the'' and inserting ``The''; and
(II) by inserting ``continue to''
before ``implement''; and
(ii) in the second sentence, by striking
``the Internet'' and inserting ``the Internet,
including through social media''; and
(2) by adding at the end the following:
`` (c) Online Estimator Tool.--
``(1) In general.--Not later than 1 year after the date of
enactment of the PROSPER Act, the Secretary, in consultation
with States, institutions of higher education, and other
individuals with experience or expertise in student financial
assistance application processes, shall develop an early
estimator tool to be available online and through a mobile
application, which--
``(A) allows an individual to--
``(i) enter basic financial and other
relevant information; and
``(ii) on the basis of such information,
receive non-binding estimates of potential
Federal grant, loan, or work study assistance
under this title for which a student may be
eligible upon completion of an application form
under section 483(a);
``(B) with respect to each institution of higher
education that participates in a program under this
title selected by an individual for purposes of the
estimator tool, provides the individual with the net
price (as defined in section 132) for the income
category described in paragraph (2) that is determined
on the basis of the information under subparagraph
(A)(i) of this paragraph entered by the individual;
``(C) includes a clear and conspicuous disclaimer
that the amounts calculated using the estimator tool
are estimates based on limited financial information,
and that--
``(i) each such estimate--
``(I) in the case of an estimate
under subparagraph (A), is only an
estimate and does not represent a final
determination, or actual award, of
financial assistance under this title;
``(II) in the case of an estimate
under subparagraph (B), is only an
estimate and not a guarantee of the
actual amount that a student may be
charged;
``(III) shall not be binding on the
Secretary or an institution of higher
education; and
``(IV) may change; and
``(ii) a student must complete an application
form under section 483(a) in order to be
eligible for, and receive, an actual financial
aid award that includes Federal grant, loan, or
work study assistance under this title; and
``(D) includes a clear and conspicuous explanation of
the differences between a grant and a loan, and that an
individual will be required to repay any loan borrowed
by the individual.
``(2) Income categories.--The income categories for purposes
of paragraph (1)(B) are as follows:
``(A) $0 to $30,000.
``(B) $30,001 to $48,000.
``(C) $48,001 to $75,000.
``(D) $75,001 to $110,000.
``(E) $110,001 to $150,000.
``(F) Over $150,000.
``(3) Consumer testing.--In developing and maintaining the
estimator tool described in paragraph (1), the Secretary shall
conduct consumer testing with appropriate persons, including
current and prospective college students, family members of
such students, and other individuals with expertise in student
financial assistance application processes and college access,
to ensure that such tool is easily understandable by students
and families and effective in communicating early aid
eligibility.
``(4) Data storage prohibited.--In carrying out this
subsection, the Secretary shall not keep, store, or warehouse
any data inputted by individuals accessing the tool described
in paragraph (1).
``(d) Pell Table.--
``(1) In general.--The Secretary shall develop, and annually
update at the beginning of each award year, the following
electronic tables to be utilized in carrying out this section
and containing the information described in paragraph (2) of
this subsection:
``(A) An electronic table for dependent students.
``(B) An electronic table for independent students
with dependents other than a spouse.
``(C) An electronic table for independent students
without dependents other than a spouse.
``(2) Information.--Each electronic table under paragraph
(1), with respect to the category of students to which the
table applies for the most recently completed award year for
which information is available, and disaggregated in accordance
with paragraph (3), shall contain the following information:
``(A) The percentage of undergraduate students
attending an institution of higher education on a full-
time, full-academic year basis who file the financial
aid form prescribed under section 483 for the award
year and received, for their first academic year during
such award year (and not for any additional payment
periods after such first academic year), the following:
``(i) A Federal Pell Grant equal to the
maximum amount of a Federal Pell Grant award
determined under section 401(b)(2) for such
award year.
``(ii) A Federal Pell Grant in an amount that
is--
``(I) less than the maximum amount
described in clause (i); and
``(II) not less than 3/4 of such
maximum amount for such award year.
``(iii) A Federal Pell Grant in an amount
that is--
``(I) less than 3/4 of such maximum
amount; and
``(II) not less than \1/2\ of such
maximum amount for such award year.
``(iv) A Federal Pell Grant in an amount that
is--
``(I) less than \1/2\ of such maximum
amount; and
``(II) not less than the minimum
Federal Pell Grant amount determined
under section 401(b)(4) for such award
year.
``(B) The dollar amounts equal to--
``(i) the maximum amount of a Federal Pell
Grant award determined under section 401(b)(2)
for an award year;
``(ii) 3/4 of such maximum amount;
``(iii) \1/2\ of such maximum amount; and
``(iv) the minimum Federal Pell Grant amount
determined under section 401(b)(4) for such
award year.
``(C) A clear and conspicuous notice that--
``(i) the Federal Pell Grant amounts listed
in subparagraph (B) are for a previous award
year, and such amounts and the requirements for
awarding such amounts may be different for
succeeding award years; and
``(ii) the Federal Pell Grant amount for
which a student may be eligible will be
determined based on a number of factors,
including enrollment status, once the student
completes an application form under section
483(a).
``(D) A link to the early estimator tool described in
subsection (c) of this section, which includes an
explanation that an individual may estimate a student's
potential Federal aid eligibility under this title by
accessing the estimator on the individual's mobile
phone or online.
``(3) Income categories.--The information provided under
paragraph (2)(A) shall be disaggregated by the following income
categories:
``(A) Less than $5,000.
``(B) $5,000 to $9,999.
``(C) $10,000 to $19,999.
``(D) $20,000 to $29,999.
``(E) $30,000 to $39,999.
``(F) $40,000 to $49,999.
``(G) $50,000 to $59,999.
``(H) Greater than $59,999.
``(e) Limitation.--The Secretary may not require a State to
participate in the activities or disseminate the materials described in
this section.''.
SEC. 490. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
Section 486 (20 U.S.C. 1093(b)) is repealed.
SEC. 491. CONTENTS OF PROGRAM PARTICIPATION AGREEMENTS.
(a) Program Participation Agreements.--Section 487(a) (20 U.S.C.
1094(a)) is amended in the matter before paragraph (1) by striking ``,
except with respect to a program under subpart 4 of part A''.
(b) Perkins Conforming Changes.--Section 487(a)(5) (20 U.S.C.
1094(a)(5)) is amended by striking ``and, in the case of an institution
participating in a program under part B or part E, to holders of loans
made to the institution's students under such parts''.
(c) Certifications to Lenders.--Section 487(a) (20 U.S.C. 1094(a)) is
amended by striking paragraph (6).
(d) State Grant Assistance.--Section 487(a)(9) (20 U.S.C. 1094(a)(9))
is amended by striking ``in a program under part B or D'' and inserting
``in a loan program under this title''.
(e) Opioid Misuse and Substance Abuse Prevention Program.--Section
487(a)(10) (20 U.S.C. 1094(a)(10)) is amended by inserting ``under
section 118'' after ``drug abuse prevention program''.
(f) Repayment Success Plan.--Section 487(a)(14) (20 U.S.C.
1094(a)(14)) is amended--
(1) by striking ``under part B or D'' both places it appears
and inserting ``a loan program under this title'';
(2) by striking ``Default Management Plan'' both places it
appears and inserting ``Repayment Success Plan''; and
(3) in subparagraph (C), by striking ``a cohort default rate
in excess of 10 percent'' both places it appears and inserting
``any program with a loan repayment rate less than 65
percent''.
(g) Commissions to Third-Party Entities.--Section 487(a)(20) (20
U.S.C. 1094(a)(20)) is amended--
(1) by striking ``The institution'' and inserting ``(A)
Except as provided in subparagraph (B), the institution''; and
(2) by adding at the end the following new subparagraph:
``(B) An institution described in section 101 may provide
payment, based on--
``(i) the amount of tuition generated by the
institution from student enrollment, to a third-party
entity that provides a set of services to the
institution that includes student recruitment services,
regardless of whether the third-party entity is
affiliated with an institution that provides
educational services other than the institution
providing such payment, if--
``(I) the third-party entity is not
affiliated with the institution providing such
payment;
``(II) the third-party entity does not make
compensation payments to its employees that
would be prohibited under subparagraph (A) if
such payments were made by the institution;
``(III) the set of services provided to the
institution by the third-party entity include
services in addition to student recruitment
services, and the institution does not pay the
third-party entity solely or separately for
student recruitment services provided by the
third-party entity; and
``(IV) any student recruitment information
available to the third-party entity, including
personally identifiable information, will not
be used by, shared with, or sold to any other
person or entity, including any institution
that is affiliated with the third-party entity,
unless written consent is provided by the
student; and
``(ii) students successfully completing their
educational programs, to persons who were engaged in
recruiting such students, but solely to the extent that
such payments--
``(I) are obligated to be paid, and are
actually paid, only after each student upon
whom such payments are based has successfully
completed his or her educational program; and
``(II) are paid only to employees of the
institution or its parent company, and not to
any other person or outside entity.''.
(h) Clarification of Proof of Authority to Operate Within a State.--
Section 487(a)(21) (20 U.S.C. 1094(a)(21)) is amended by striking
``within a State'' and inserting ``within a State in which it maintains
a physical location''.
(i) Distribution of Voter Registration Forms.--Section 487(a)(23) (20
U.S.C. 1094(a)(23)) is amended to read as follows:
``(23) The institution, if located in a State to which
section 4(b) of the National Voter Registration Act of 1993 (42
U.S.C. 1973gg-2(b)) does not apply, will make a good faith
effort to distribute, including through electronic
transmission, voter registration forms to students enrolled and
physically in attendance at the institution.''.
(j) Prohibiting Copyright Infringement.--Section 487(a)(29) (20
U.S.C. 1094(a)(29)) is amended to read as follows:
``(29) The institution will have a policy prohibiting
copyright infringement.''.
(k) Modifications to Preferred Lender List Requirements.--Section
487(h)(1) (20 U.S.C. 1094(h)(1)) is amended--
(1) in subparagraph (A)--
(A) in clause (i), by inserting ``and'' after the
semicolon;
(B) by striking clause (ii); and
(C) by redesignating clause (iii) as clause (ii);
(2) in subparagraph (D), by inserting ``and'' after the
semicolon;
(3) in subparagraph (E), by striking ``; and'' and inserting
a period; and
(4) by striking subparagraphs (C) and (F) and redesignating
subparagraphs (D) and (E) as subparagraphs (C) and (D),
respectively.
(l) Elimination of Non-title IV Revenue Requirement.--Section 487 (20
U.S.C. 1094), is further amended--
(1) in subsection (a), by striking paragraph (24);
(2) by striking subsection (d); and
(3) by redesignating subsections (e) through (j) as
subsections (d) through (i), respectively.
(m) Conforming Amendments.--The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.) is amended--
(1) in section 487(a) (20 U.S.C. 1094(a)), as amended by this
section--
(A) by redesignating paragraphs (7) through (23), as
paragraphs (6) through (22), respectively; and
(C) by redesignating paragraphs (25) through (29) as
paragraphs (23) through (27), respectively;
(2) in section 487(c)(1)(A)(iii) (20 U.S.C.
1094(c)(1)(A)(iii)), by striking ``section 102(a)(1)(C)'' and
inserting ``section 102(a)(1)''; and
(3) in section 487(h)(4) (20 U.S.C. 1094(h)(4)), as
redesignated by subsection (l)(3), by striking ``section 102''
and inserting ``section 101 or 102''.
SEC. 492. REGULATORY RELIEF AND IMPROVEMENT.
Section 487A (20 U.S.C. 1094a) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``The Secretary is
authorized to'' and inserting ``The Secretary shall'';
and
(B) in paragraph (5), by inserting ``at least once
every two years'' before the period at the end; and
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in the paragraph heading, by inserting
``Annual'' before ``Report''; and
(ii) by striking the first sentence and
inserting ``The Secretary shall review the
experience, and rigorously evaluate the
activities, of all institutions participating
as experimental sites and shall, on an annual
basis, submit a report based on the review and
evaluation findings to the authorizing
committees.'';
(B) in paragraph (3), by amending subparagraph (A) to
read as follows:
``(A) In general.--
``(i) Experimental sites.--The Secretary is
authorized periodically to select a limited
number of institutions for voluntary
participation as experimental sites to provide
recommendations to the Secretary and to the
Congress on the impact and effectiveness of
proposed regulations or new management
initiatives.
``(ii) Congressional notice and comments
required.--
``(I) Notice.--Prior to announcing a
new experimental site and inviting
institutions to participate, the
Secretary shall provide to the
authorizing committees a notice that
shall include--
``(aa) a description of the
proposed experiment and
rationale for the proposed
experiment; and
``(bb) a list of the
institutional requirements the
Secretary expects to waive and
the legal authority for such
waivers.
``(II) Congressional comments.--The
Secretary shall not proceed with
announcing a new experimental site and
inviting institutions to participate
until 10 days after the Secretary--
``(aa) receives and addresses
all comments from the
authorizing committees; and
``(bb) responds to such
committees in writing with an
explanation of how such
comments have been addressed.
``(iii) Prohibition.--The Secretary is not
authorized to carry out clause (i) in any year
in which an annual report described in
paragraph (2) relating to the previous year is
not submitted to the authorizing committees.'';
(C) in paragraph (4)(A), by striking ``biennial'' and
inserting ``annual''; and
(D) by striking paragraph (1) and redesignating
paragraphs (2) through (4) as paragraphs (1) through
(3), respectively.
SEC. 493. TRANSFER OF ALLOTMENTS.
Section 488 (20 U.S.C. 1095) is amended--
(1) by inserting ``, as in effect on the day before the date
of enactment of the PROSPER Act,'' after ``section 462''; and
(2) by inserting ``, as in effect on the day before the date
of enactment of the PROSPER Act,'' after ``or 462''.
SEC. 494. ADMINISTRATIVE EXPENSES.
Section 489(a) (20 U.S.C. 1096(a)) is amended--
(1) in the second sentence--
(A) by striking ``subpart 3 of part A or part C,''
and inserting ``part C'' ; and
(B) by striking ``or under part E of this title'';
and
(2) in the third sentence--
(A) by striking ``its grants to students under
subpart 3 of part A,''; and
(B) by striking ``, and the principal amount of loans
made during such fiscal year from its student loan fund
established under part E, excluding the principal
amount of any such loans which the institution has
referred under section 463(a)(4)(B)''.
SEC. 494A. REPEAL OF ADVISORY COMMITTEE.
Section 491 (20 U.S.C. 1098) is repealed.
SEC. 494B. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
Section 492 (20 U.S.C. 1098a) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(f) and (g), respectively; and
(2) by striking subsections (a) and (b) and inserting the
following:
``(a) In General.--The Secretary may, in accordance with this
section, issue such regulations as are reasonably necessary to ensure
compliance with this title.
``(b) Public Involvement.--The Secretary shall obtain public
involvement in the development of proposed regulations for this title.
Before carrying out a negotiated rulemaking process as described in
subsection (d) or publishing in the Federal Register proposed
regulations to carry out this title, the Secretary shall obtain advice
and recommendations from individuals, and representatives of groups,
involved in student financial assistance programs under this title,
such as students, institutions of higher education, financial aid
administrators, accrediting agencies or associations, State student
grant agencies, guaranty agencies, lenders, secondary markets, loan
servicers, guaranty agency servicers, and collection agencies.
``(c) Meetings and Electronic Exchange.--
``(1) In general.--The Secretary shall provide for a
comprehensive discussion and exchange of information concerning
the implementation of this title through such mechanisms as
regional meetings and electronic exchanges of information. Such
regional meetings and electronic exchanges of information shall
be public and notice of such meetings and exchanges shall be
provided to--
``(A) the authorizing committees at least 10 days
prior to the notice to interested stakeholders and the
public described in subparagraph (B); and
``(B) interested stakeholders and the public at least
30 days prior to such meetings and exchanges.
``(2) Consideration.--The Secretary shall take into account
the information received through such mechanisms in the
development of proposed regulations and shall publish a summary
of such information in the Federal Register prior to beginning
the negotiated rulemaking process described in subsection (d).
``(d) Negotiated Rulemaking Process.--
``(1) Negotiated rulemaking required.--All regulations
pertaining to this title that are promulgated after the date of
the enactment of this paragraph shall be subject to the
negotiated rulemaking process described in this subsection
(including the selection of the issues to be negotiated),
unless the Secretary--
``(A) determines that applying such a requirement
with respect to given regulations is impracticable,
unnecessary, or contrary to the public interest (within
the meaning of section 553(b)(3)(B) of title 5, United
States Code);
``(B) publishes the basis for such determination in
the Federal Register at the same time as the proposed
regulations in question are first published; and
``(C) includes the basis for such determination in
the congressional notice under subsection (e)(1).
``(2) Congressional notice and comments required.--
``(A) Notice.--The Secretary shall provide to the
Committee on Education and the Workforce of the House
of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate notice of
the intent establish a negotiated rulemaking committee
that shall include--
``(i) the need to issue regulations;
``(ii) the statutory and legal authority of
the Secretary to regulate the issue;
``(iii) the summary of public comments
described in paragraph (2) of subsection (c);
``(iv) the anticipated burden, including the
time, cost, and paperwork burden, the
regulations will have on institutions of higher
education and other entities that may be
impacted by the regulations; and
``(v) any regulations that will be repealed
when the new regulations are issued.
``(B) Congressional comments.--The Secretary shall
not proceed with the negotiated rulemaking process--
``(i) until 10 days after the Secretary--
``(I) receives and addresses all
comments from the authorizing
committees; and
``(II) responds to the authorizing
committees in writing with an
explanation of how such comments have
been addressed; or
``(ii) until 60 days after providing the
notice required under subparagraph (A) if the
Secretary has not received comments under
clause (i).
``(3) Process.--After obtaining advice and recommendations
under subsections (b) and (c), and before publishing proposed
regulations, the Secretary shall--
``(A) establish a negotiated rulemaking process;
``(B) select individuals to participate in such
process--
``(i) from among individuals or groups that
provided advice and recommendations under
subsections (b) and (c), including--
``(I) representatives of such groups
from Washington, D.C.; and
``(II) other industry participants;
and
``(ii) with demonstrated expertise or
experience in the relevant subjects under
negotiation, reflecting the diversity in the
industry, representing both large and small
participants, as well as individuals serving
local areas and national markets;
``(C) prepare a draft of proposed policy options,
which shall take into account comments received from
both the public and the authorizing committees, that
shall be provided to the individuals selected by the
Secretary under subparagraph (B) and such authorizing
committees not less than 15 days before the first
meeting under such process; and
``(D) ensure that the negotiation process is
conducted in a timely manner in order that the final
regulations may be issued by the Secretary within the
360-day period described in section 437(e) of the
General Education Provisions Act (20 U.S.C. 1232(e)).
``(4) Agreements and records.--
``(A) Agreements.--All published proposed regulations
developed through the negotiation process under this
subsection shall conform to all agreements resulting
from such process unless the Secretary reopens the
negotiated rulemaking process.
``(B) Records.--The Secretary shall ensure that a
clear and reliable record is maintained of agreements
reached during a negotiation process under this
subsection.
``(e) Proposed Rulemaking.--If the Secretary determines pursuant to
subsection (d)(1) that a negotiated rulemaking process is
impracticable, unnecessary, or contrary to the public interest (within
the meaning of section 553(b)(3)(B) of title 5, United States Code), or
the individuals selected to participate in the process under subsection
(d)(3)(B) fail to reach unanimous agreement on an issue being
negotiated, the Secretary may propose regulations subject to subsection
(f).
``(f) Requirements for Proposed Regulations.--Regulations proposed
pursuant to subsection (e) shall meet the following procedural
requirements:
``(1) Congressional notice.--Regardless of whether
congressional notice was submitted under subsection (d)(2), the
Secretary shall provide to the Committee on Education and the
Workforce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate notice
that shall include--
``(A) a copy of the proposed regulations;
``(B) the need to issue regulations;
``(C) the statutory and legal authority of the
Secretary to regulate the issue;
``(D) the anticipated burden, including the time,
cost, and paperwork burden, the regulations will have
on institutions of higher education and other entities
that may be impacted by the regulations; and
``(E) any regulations that will be repealed when the
new regulations are issued.
``(2) Congressional comments.--The Secretary may not proceed
with the rulemaking process--
``(A) until 10 days after the Secretary--
``(i) receives and addresses all comments
from the authorizing committees; and
``(ii) responds to the authorizing committees
in writing with an explanation of how such
comments have been addressed; or
``(B) until 60 days after providing the notice
required under paragraph (1) if the Secretary has not
received comments under subparagraph (A).
``(3) Comment and review period.--The comment and review
period for the proposed regulation shall be 90 days unless an
emergency requires a shorter period, in which case such period
shall be not less than 45 days and the Secretary shall--
``(A) designate the proposed regulation as an
emergency, with an explanation of the emergency, in the
notice to the Congress under paragraph (1);
``(B) publish the length of the comment and review
period in such notice and in the Federal Register; and
``(C) conduct immediately thereafter regional
meetings to review such proposed regulation before
issuing any final regulation.
``(4) Independent assessment.--No regulation shall be made
final after the comment and review period until the Secretary
has published in the Federal Register an independent assessment
(which shall include a representative sampling of institutions
of higher education based on sector, enrollment, urban,
suburban, or rural character, and other factors impacted by the
regulation) of--
``(A) the burden, including the time, cost, and
paperwork burden, the final regulation will impose on
institutions and other entities that may be impacted by
the regulation;
``(B) an explanation of how the entities described in
subparagraph (A) may cover the cost of the burden
assessed under such subparagraph; and
``(C) the regulation, including a thorough
assessment, based on the comments received during the
comment and review period under paragraph (3), of
whether the rule is financially, operationally, and
educationally viable at the institutional level.''.
SEC. 494C. REPORT TO CONGRESS.
Section 493C (20 U.S.C. 1098e) is amended by adding at the end the
following:
``(f) Report.--
``(1) In general.--Not later than 180 days after the date of
enactment of the PROSPER Act, the Secretary shall submit to the
authorizing committees a report on the efforts of the
Department to detect and combat fraud in the income-driven
repayment plans described in paragraph (2).
``(2) Income driven repayment plans defined.--The income-
driven repayment plans described in this paragraph are the
repayment plans made available under--
``(A) this section;
``(B) subparagraphs (D) and (E) of section 455(d)(1);
and
``(C) section 455(e).''.
SEC. 494D. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE DUTY.
Section 493D(a) (20 U.S.C. 1098f) is amended, by striking ``or
464(c)(2)(A)(iii)'' and inserting ``464(c)(2)(A)(iii) (as in effect on
the day before the date of enactment of the PROSPER Act and pursuant to
section 461(a)), or 469A(a)(2)(A)(iii)''.
SEC. 494E. CONTRACTS; MATCHING PROGRAM.
(a) Contracts for Supplies and Services.--
(1) In general.--Part G of title IV (20 U.S.C. 1088 et seq.),
as amended by this part, is further amended by adding at the
end the following:
``SEC. 493E. CONTRACTS.
``(a) Contracts for Supplies and Services.--
``(1) In general.--The Secretary shall, to the extent
practicable, award contracts for origination, servicing, and
collection described in subsection (b). In awarding such
contracts, the Secretary shall ensure that such services and
supplies are provided at competitive prices.
``(2) Entities.--The entities with which the Secretary may
enter into contracts shall include entities qualified to
provide such services and supplies and will comply with the
procedures applicable to the award of such contracts. In the
case of awarding contracts for the origination, servicing, and
collection of loans under parts D and E, the Secretary shall
enter into contracts with entities that have extensive and
relevant experience and demonstrated effectiveness. The
entities with which the Secretary may enter into such contracts
may include, where practicable, agencies with agreements with
the Secretary under sections 428(b) and (c), if such agencies
meet the qualifications as determined by the Secretary under
this subsection and if those agencies have such experience and
demonstrated effectiveness. In awarding contracts to such State
agencies, the Secretary shall, to the extent practicable and
consistent with the purposes of parts D and E, give
consideration to State agencies with a history of high quality
performance to perform services for institutions of higher
education within their State.
``(3) Allocations.--
``(A) In general.--Except as provided in subparagraph
(B), the Secretary shall allocate new borrower loan
accounts to entities awarded a contract under this
section on the basis of--
``(i) the performance of each such entity
compared to other such entities performing
similar work using common performance metrics
(which may take into account, as appropriate,
portfolio risk factors, including a borrower's
time in repayment, category of institution of
higher education attended, and completion of an
educational program), as determined by the
Secretary; and
``(ii) the capacity of each such entity
compared to other such entities performing
similar work to service new and existing
borrower loan accounts.
``(B) Federal one consolidation loans.--Any borrower
who receives a Federal ONE Consolidation Loan may
select the entity awarded a contract under this section
to service such loan.
``(4) Rule of construction.--Nothing in this section shall be
construed as a limitation of the authority of any State agency
to enter into an agreement for the purposes of this section as
a member of a consortium of State agencies.
``(b) Contracts for Origination, Servicing, and Data Systems.--The
Secretary may enter into contracts for--
``(1) the servicing and collection of loans made or purchased
under part D or E;
``(2) the establishment and operation of 1 or more data
systems for the maintenance of records on all loans made or
purchased under part D or E; and
``(3) such other aspects of the direct student loan program
under part D or E necessary to ensure the successful operation
of the program.
``(c) Common Performance Manual.--
``(1) Consultation.--Not later than 180 days after the date
of enactment of the PROSPER Act and biannually thereafter, the
Secretary shall consult (in writing and in person) with
entities awarded contracts for loan servicing under section 456
(as in effect on the day before the date of enactment of the
PROSPER Act) and this section, to the extent practicable, to
develop and update as necessary, a guidance manual for entities
awarded contracts for loan servicing under this section that
provides such entities with best practices to ensure borrowers
receive adequate and consistent service from such entities.
``(2) Provision of manual.--The Secretary shall provide the
most recent guidance manual developed and updated under
paragraph (1) to each entity awarded a contract for loan
serving under this section.
``(3) Annual report.--The Secretary shall provide to the
authorizing committees a report, on a annual basis, detailing
the consultation required under paragraph (1).
``(d) Federal Preemption.--
``(1) In general.--Covered activities shall not be subject to
any law or other requirement of any State or political
subdivision of a State with respect to--
``(A) disclosure requirements;
``(B) requirements or restrictions on the content,
time, quantity, or frequency of communications with
borrowers, endorsers, or references with respect to
such loans; or
``(C) any other requirement relating to the servicing
or collection of a loan made under this title.
``(2) Servicing and collection.--The requirements of this
section with respect to any covered activity shall preempt any
law or other requirement of a State or political subdivision of
a State to the extent that such law or other requirement would,
in the absence of this subsection, apply to such covered
activity.
``(3) State licenses.--No qualified entity engaged in a
covered activity shall be required to obtain a license from, or
pay a licensing fee or other assessment to, any State or
political subdivision of a State relating to such covered
activity.
``(4) Definitions.--For purposes of this section:
``(A) The term `covered activity' means any of the
following activities, as carried out by a qualified
entity:
``(i) Origination of a loan made under this
title.
``(ii) Servicing of a loan made under this
title.
``(iii) Collection of a loan made under this
title.
``(iv) Any other activity related to the
activities described in clauses (i) through
(iii).
``(B) The term `qualified entity' means an
organization, other than an institution of higher
education--
``(i) that is responsible for the servicing
or collection of a loan made under this title;
``(ii) that has agreement with the Secretary
under subsections (a) and (b) of section 428;
or
``(iii) that is under contract with an entity
described in clause (i) or clause (ii) to
support such entity's responsibilities under
this title.
``(5) Limitation.--This subsection shall not have any legal
effect on any other preemption provision under Federal law with
respect to this title.''.
(2) Conforming amendment.--Section 456 (20 U.S.C. 1087f) is
repealed.
(b) Matching Program.--Part G of title IV (20 U.S.C. 1088 et seq.),
as amended by subsection (a), is further amended by adding at the end
the following:
``SEC. 493F. MATCHING PROGRAM.
``(a) In General.--The Secretary of Education and the Secretary of
Veterans Affairs shall carry out a computer matching program under
which the Secretary of Education identifies, on at least a quarterly
basis, borrowers--
``(1) who have been assigned a disability rating of 100
percent (or a combination of ratings equaling 100 percent or
more) by the Secretary of Veterans Affairs for a service-
connected disability (as defined in section 101 of title 38,
United States Code); or
``(2) who have been determined by the Secretary of Veterans
Affairs to be unemployable due to a service-connected
condition, as described in section 437(a)(2).
``(b) Borrower Notification.--With respect to each borrower who is
identified under subsection (a), the Secretary shall, as soon as
practicable after such identification--
``(1) notify the borrower of the borrower's eligibility for
loan discharge under section 437(a); and
``(2) provide the borrower with simple instructions on how to
apply for such loan discharge, including an explanation that
the borrower shall not be required to provide any documentation
of the borrower's disability rating to receive such discharge.
``(c) Data Collection and Report to Congress.--
``(1) In general.--The Secretary shall annually collect and
submit to the Committees on Education and the Workforce and
Veterans' Affairs of the House of Representatives and the
Committees on Health, Education, Labor, and Pensions and
Veterans Affairs of the Senate, data about borrowers applying
for and receiving loan discharges under section 437(a), which
shall be disaggregated in the manner described in paragraph (2)
and include the following:
``(A) The number of applications received under
section 437(a).
``(B) The number of such applications that were
approved.
``(C) The number of loan discharges that were
completed under section 437(a).
``(2) Disaggregation.--The data collected under paragraph (1)
shall be disaggregated--
``(A) by borrowers who applied under this section for
loan discharges under section 437(a);
``(B) by borrowers who received loan discharges as a
result of applying for such discharges under this
section;
``(C) by borrowers who applied for loan discharges
under section 437(a)(2); and
``(D) by borrowers who received loan discharges as a
result of applying for such discharges under section
437(a)(2).
``(d) Notification to Borrowers.--The Secretary shall notify each
borrower whose liability on a loan has been discharged under section
437(a) that the liability on the loan has been so discharged.''.
PART H--PROGRAM INTEGRITY
SEC. 495. REPEAL OF AND PROHIBITION ON STATE AUTHORIZATION REGULATIONS.
(a) Regulations Repealed.--The following regulations relating to
State authorization (including any supplements or revisions to such
regulations) are repealed and shall have no force or effect:
(1) The final regulations published by the Department of
Education in the Federal Register on October 29, 2010 (75 Fed.
Reg. 66832 et seq.).
(2) The final regulations published by the Department of
Education in the Federal Register on December 19, 2016 (81 Fed.
Reg. 92232 et seq).
(b) Prohibition on State Authorization Regulations.--The Secretary of
Education shall not, on or after the date of enactment of this Act,
promulgate or enforce any regulation or rule with respect to the State
authorization for institutions of higher education to operate within a
State for any purpose under the Higher Education Act of 1965 (20 U.S.C.
1001 et seq.).
(c) Institutional Responsibility; Treatment of Religious
Institutions.--Section 495 (20 U.S.C. 1099a) is amended by striking
subsection (b) and inserting the following:
``(b) Institutional Responsibility.--Each institution of higher
education shall provide evidence to the Secretary that the institution
has authority to operate within each State in which it maintains a
physical location at the time the institution is certified under
subpart 3.
``(c) Treatment of Religious Institutions.--An institution shall be
treated as legally authorized to operate educational programs beyond
secondary education in a State under section 101(a)(2) if the
institution is--
``(1) recognized as a religious institution by the State; and
``(2) because of the institution's status as a religious
institution, exempt from any provision of State law that
requires institutions to be authorized by the State to operate
educational programs beyond secondary education.''.
SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.
Section 496 (20 U.S.C. 1099b) is amended--
(1) in subsection (j), by striking ``section 102'' and
inserting ``section 101'';
(2) in subsection (a)--
(A) in paragraph (2), by amending subparagraph (A) to
read as follows:
``(A) for the purpose of participation in programs
under this Act or other programs administered by the
Department of Education or other Federal agencies, has
a voluntary membership of institutions of higher
education or other entities and has as a principal
purpose the accrediting of institutions of higher
education or programs;'';
(B) in paragraph (3)--
(i) in subparagraph (A)--
(I) by striking ``subparagraph
(A)(i)'' and inserting ``subparagraph
(A) or (C)'';
(II) by striking ``separate'' and
inserting ``separately incorporated'';
and
(III) by adding ``or'' at the end;
(ii) by striking ``or'' at the end of
subparagraph (B); and
(iii) by striking subparagraph (C);
(C) in paragraph (4)--
(i) in subparagraph (A)--
(I) by inserting ``as defined by the
institution'' after ``stated mission of
the institution of higher education'';
(II) by striking ``, including
distance education or correspondence
courses or programs,''; and
(III) by striking ``and'' at the end;
(ii) by striking subparagraph (B) and
inserting the following:
``(B) such agency or association demonstrates the
ability to review, evaluate, and assess the quality of
any instruction delivery model or method such agency or
association has or seeks to include within its scope of
recognition, without giving preference to or
differentially treating a particular instruction
delivery model or method offered by an institution of
higher education or program except that, in a case in
which the instruction delivery model allows for the
separation of the student from the instructor--
``(i) the agency or association requires the
institution to have processes through which the
institution establishes that the student who
registers in a course or program is the same
student who participates in, including, to the
extent practicable, testing or other
assessment, and completes the program and
receives the academic credit; and
``(ii) the agency or association requires
that any process used by an institution to
comply with the requirement under clause (i)
does not infringe upon student privacy and is
implemented in a manner that is minimally
burdensome to the student; and
``(C) if such an agency or association evaluates or
assesses the quality of competency-based education
programs, the agency's or association's evaluation or
assessment --
``(i) shall address effectively the quality
of an institution's competency-based education
programs as set forth in paragraph (5), except
that the agency or association is not required
to have separate standards, procedures, or
policies for the evaluation of competency-based
education;
``(ii) shall establish whether an institution
has demonstrated that its program satisfies the
definitions in section 103(25); and
``(iii) shall establish whether an
institution has demonstrated that it has
defined an academic year for a competency-based
program in accordance with section
481(a)(3).'';
(D) by amending paragraph (5) to read as follows:
``(5) the standards for accreditation of the agency or
association assess the institution's success with respect to
student learning and educational outcomes in relation to the
institution's mission, which may include different standards
for different institutions or programs, except that the
standards shall include consideration of student learning and
educational outcomes in relation to expected measures of
student learning and educational outcomes, which at the
agency's or association's discretion are established--
``(A) by the agency or association; or
``(B) by the institution or program, at the
institution or program level, as the case may be, if
the institution or program--
``(i) defines expected student learning goals
and educational outcomes;
``(ii) measures and evaluates student
learning, educational outcomes, and, if
appropriate, other outcomes of the students who
complete their program of study;
``(iii) uses information about student
learning, educational outcomes, and, if
appropriate, other outcomes, to improve the
institution or program; and
``(iv) makes such information available to
appropriate constituencies;''; and
(E) in paragraph (8), by striking ``, upon
request,'';
(3) in subsection (b)--
(A) in the subsection heading, by striking
``Separate'' and inserting ``Separately Incorporated'';
(B) in the matter preceding paragraph (1), by
striking ``separate'' and inserting ``separately
incorporated'';
(C) in paragraph (2), by inserting ``who shall
represent business'' after ``one such public member'';
and
(D) in paragraph (4), by inserting before the period
at the end ``and is maintained separately from any such
entity or organization'';
(4) in subsection (c)--
(A) in paragraph (1)--
(i) by inserting ``(which may vary based on
institutional risk consistent with policies
promulgated by the agency or association to
determine such risk and interval frequency as
allowed under subsection (p))'' after
``intervals''; and
(ii) by striking ``distance education'' and
inserting ``competency-based education'';
(B) by striking paragraph (5) and redesignating
paragraphs (2), (3), and (4) as paragraphs (3), (4),
and (5), respectively;
(C) by inserting after paragraph (1), the following:
``(2) develops a mechanism to identify institutions or
programs accredited by the agency or association that may be
experiencing difficulties accomplishing their missions with
respect to the student learning and educational outcome goals
established under subsection (a)(5) and--
``(A) as appropriate, uses information such as
student loan default or repayment rates, retention or
graduation rates, evidence of student learning,
financial data, and other indicators to identify such
institutions;
``(B) not less than annually, evaluates the extent to
which those identified institutions or programs
continue to be in compliance with the agency or
association's standards; and
``(C) as appropriate, requires the institution or
program to address deficiencies and ensure that any
plan to address and remedy deficiencies is successfully
implemented.'';
(D) in paragraph (4)(A), as so redesignated, by
striking ``487(f)'' and inserting ``487(e)'';
(E) by amending paragraph (5), as so redesignated, to
read as follows:
``(5) establishes and applies or maintains policies which
ensure that any substantive change to the educational mission,
program, or programs of an institution after the agency or
association has granted the institution accreditation or
preaccreditation status does not adversely affect the capacity
of the institution to continue to meet the agency's or
association's standards for such accreditation or
preaccreditation status, which shall include policies that--
``(A) require the institution to obtain the agency's
or association's approval of the substantive change
before the agency or association includes the change in
the scope of the institution's accreditation or
preaccreditation status; and
``(B) define substantive change to include, at a
minimum--
``(i) any change in the established mission
or objectives of the institution;
``(ii) any change in the legal status, form
of control, or ownership of the institution;
``(iii) the addition of courses, programs of
instruction, training, or study, or credentials
or degrees that represent a significant
departure from the courses, programs, or
credentials or degrees that were offered at
time the agency or association last evaluated
the institution; or
``(iv) the entering into a contract under
which an institution or organization not
certified to participate programs under title
IV provides a portion of an accredited
institution's educational program that is
greater than 25 percent;'';
(F) in paragraph (7)--
(i) in the matter preceding subparagraph (A),
by inserting ``, on the agency's or
association's website,'' after ``public'';
(ii) in subparagraph (C), by inserting before
the semicolon at the end the following: ``, and
a summary of why such action was taken or such
placement was made'';
(G) in paragraph (8), by striking ``and'' at the end;
(H) in paragraph (9), by striking the period at the
end and inserting a semicolon;
(I) by adding at the end the following:
``(10) makes publicly available, on the agency or
association's website, a list of the institutions of higher
education accredited by such agency or association, which
includes, with respect to each institution on the list---
``(A) the year accreditation was granted;
``(B) the most recent date of a comprehensive
evaluation of the institution under paragraph (1); and
``(C) the anticipated date of the next such
evaluation; and
``(11) confirms, as a part of the agency's or association's
review for accreditation or reaccreditation, that the
institution's website includes consumer information described
section paragraphs (1) and (2) of section 132(d).'';
(5) in subsection (e)--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--Subject to paragraph (2), the Secretary'';
and
(B) by adding at the end the following:
``(2) Exception.--Paragraph (1) shall not apply in the case
of an institution described in subsection (j).''.
(6) by striking subsection (h) and inserting the following:
``(h) Change of Accrediting Agency or Association.--
``(1) In general.--The Secretary shall not recognize the
accreditation of any otherwise eligible institution of higher
education if the institution is in the process of changing its
accrediting agency or association and is subject to one or more
of the following actions, unless the eligible institution
submits to the Secretary materials demonstrating a reasonable
cause for changing the accrediting agency or association:
``(A) A pending or final action brought by a State
agency to suspend, revoke, withdraw, or terminate the
institution's legal authority to provide postsecondary
education in the State.
``(B) A decision by a recognized accrediting agency
or association to deny accreditation or
preaccreditation to the institution.
``(C) A pending or final action brought by a
recognized accrediting agency or association to
suspend, revoke, withdraw, or terminate the
institution's accreditation or preaccreditation.
``(D) Probation or an equivalent status imposed on
the institution by a recognized accrediting agency or
association.
``(2) Rule of construction.--Nothing in this subsection shall
be construed to restrict the ability of an institution of
higher education not subject to an action described in
paragraph (1) and otherwise in good standing to change
accrediting agencies or associations without the approval of
the Secretary as long as the institution notifies the Secretary
of the change.'';
(7) by striking subsection (k) and inserting the following:
``(k) Religious Institution Rule.--
``(1) In general.--Notwithstanding subsection (j), the
Secretary shall allow an institution that has had its
accreditation withdrawn, revoked, or otherwise terminated, or
has voluntarily withdrawn from an accreditation agency, to
remain certified as an institution of higher education under
section 101 and subpart 3 of this part for a period sufficient
to allow such institution to obtain alternative accreditation,
if the Secretary determines that the withdrawal, revocation, or
termination--
``(A) is related to the religious mission or
affiliation of the institution; and
``(B) is not related to the accreditation criteria
provided for in this section.
``(2) Requirements.--For purposes of this section the
following shall apply:
``(A) The religious mission of an institution may be
reflected in the institution's religious tenets,
beliefs, or teachings, and any policies or decisions
related to such tenets, beliefs, or teachings
(including any policies or decisions concerning
housing, employment, curriculum, self-governance, or
student admission, continuing enrollment, or
graduation).
``(B) An agency or association's standard fails to
respect an institution's religious mission when the
institution determines that the standard induces,
pressures, or coerces the institution to act contrary
to, or to refrain from acting in support of, any aspect
of its religious mission.
``(3) Administrative complaint for failure to respect
religious mission.--
``(A) In general.--
``(i) Institution.--If an institution of
higher education believes that an adverse
action of an accrediting agency or association
fails to respect the institution's religious
mission in violation of subsection (a)(4)(A),
the institution--
``(I) may file a complaint with the
Secretary to require the agency or
association to withdraw the adverse
action; and
``(II) prior to filing such
complaint, shall notify the Secretary
and the agency or association of an
intent to file such complaint not later
than 30 days after--
``(aa) receiving the adverse
action from the agency or
association; or
``(bb) determining that
discussions with or the
processes of the agency or
association to remedy the
failure to respect the
religious mission of the
institution will fail to result
in the withdrawal of the
adverse action by the agency or
association.
``(ii) Accrediting agency or association.--
Upon notification of an intent to file a
complaint and through the duration of the
complaint process under this paragraph, the
Secretary and the accrediting agency or
association shall treat the accreditation
status of the institution of higher education
as if the adverse action for which the
institution is filing the complaint had not
been taken.
``(B) Complaint.--Not later than 45 days after
providing notice of the intent to file a complaint, the
institution shall file the complaint with the Secretary
(and provide a copy to the accrediting agency or
association), which shall include--
``(i) a description of the adverse action;
``(ii) how the adverse action fails to
respect the institution's religious mission in
violation of subsection (a)(4)(A); and
``(iii) any other information the institution
determines relevant to the complaint.
``(C) Response.--
``(i) In general.--The accrediting agency or
association shall have 30 days from the date
the complaint is filed with the Secretary to
file with the Secretary (and provide a copy to
the institution) a response to the complaint,
which response shall include--
``(I) how the adverse action is based
on a violation of the agency or
association's standards for
accreditation; and
``(II) how the adverse action does
not fail to respect the religious
mission of the institution and is in
compliance with subsection (a)(4)(A).
``(ii) Burden of proof.--
``(I) In general.--The accrediting
agency or association shall bear the
burden of proving that the agency or
association has not taken the adverse
action as a result of the institution's
religious mission, and that the action
does not fail to respect the
institution's religious mission in
violation of subsection (a)(4)(A), by
showing that the adverse action does
not impact the aspect of the religious
claimed to be affected in the
complaint.
``(II) Insufficient proof.--Any
evidence that the adverse action
results from the application of a
neutral and generally applicable rule
shall be insufficient to prove that the
action does not fail to respect an
institution's religious mission.
``(D) Additional institution response.--The
institution shall have 15 days from the date on which
the agency or association's response is filed with the
Secretary to--
``(i) file with the Secretary (and provide a
copy to the agency or association) a response
to any issues raised in the response of the
agency or association; or
``(ii) inform the Secretary and the agency or
association that the institution elects to
waive the right to respond to the response of
the agency or association.
``(E) Secretarial action.--
``(i) In general.--Not later than 15 days of
receipt of the institution's response under
subparagraph (D) or notification that the
institution elects not to file a response under
such subparagraph--
``(I) the Secretary shall review the
materials to determine if the
accrediting agency or association has
met its burden of proof under
subparagraph (C)(ii)(I); or
``(II) in a case in which the
Secretary fails to conduct such
review--
``(aa) the Secretary shall be
deemed as determining that the
adverse action fails to respect
the religious mission of the
institution; and
``(bb) the accrediting agency
or association shall be
required to reverse the action
immediately and take no further
action with respect to such
adverse action.
``(ii) Review of complaint.--In reviewing the
complaint under clause (i)(I)--
``(I) the Secretary shall consider
the institution to be correct in the
assertion that the adverse action fails
to respect the institution's religious
mission and shall apply the burden of
proof described in subparagraph
(C)(ii)(I) with respect to the
accrediting agency or association; and
``(II) if the Secretary determines
that the accrediting agency or
association fails to meet such burden
of proof--
``(aa) the Secretary shall
notify the institution and the
agency or association that the
agency or association is not in
compliance with subsection
(a)(4)(A), and that such agency
or association shall carry out
the requirements of item (bb)
to be in compliance subsection
(a)(4)(A); and
``(bb) the agency or
association shall reverse the
adverse action immediately and
take no further action with
respect to such adverse action.
``(iii) Final departmental action.--The
Secretary's determination under this
subparagraph shall be the final action of the
Department on the complaint.
``(F) Rule of construction.--Nothing in this
paragraph shall prohibit--
``(i) an accrediting agency or association
from taking an adverse action against an
institution of higher education for a failure
to comply with the agency or association's
standards of accreditation as long as such
standards are in compliance with subsection
(a)(4)(A) and any other applicable requirements
of this section; or
``(ii) an institution of higher education
from exercising any other rights to address
concerns with respect to an accrediting agency
or association or the accreditation process of
an accrediting agency or association.
``(G) Guidance.--
``(i) In general.--The Secretary may only
issue guidance under this paragraph that
explains or clarifies the process for providing
notice of an intent to file a complaint or for
filing a complaint under this paragraph.
``(ii) Clarification.--The Secretary may not
issue guidance, or otherwise determine or
suggest, when discussions to remedy the failure
by an accrediting agency or association to
respect the religious mission of an institution
of higher education referred to in subparagraph
(A)(i)(II)(bb) have failed or will fail.'';
(8) in subsection (n)(3), by striking ``distance education
courses or programs'' each place it appears and inserting
``competency-based education programs'' ;
(9) in subsection (o), by inserting before the period at the
end the following: ``, or with respect to the policies and
procedures of an accreditation agency or association described
in paragraph (2) or (5) of subsection (c) or how the agency or
association carries out such policies and procedures'';
(10) by striking subsections (p) and (q); and
(11) by adding at the end the following:
``(p) Risk-based or Differentiated Review Processes or Procedures.--
``(1) In general.--Notwithstanding any other provision of law
(including subsection (a)(4)(A)), an accrediting agency or
association may establish, with the involvement of its
membership, risk-based or differentiated review processes or
procedures for assessing compliance with the accrediting agency
or association's standards, including policies related to
substantive change and award of accreditation statuses, for
institutions of higher education or programs that have
demonstrated exceptional past performance with respect to
meeting the accrediting agency or association's standards.
``(2) Prohibition.--Risk-based or differentiated review
processes or procedures shall not discriminate against, or
otherwise preclude, institutions of higher education based on
institutional sector or category, including an institution of
higher education's tax status.
``(3) Rule of construction.--Nothing in this subsection shall
be construed to permit the Secretary to establish any criterion
that specifies, defines, or prescribes an accrediting agency or
association's risk-based or differentiated review process or
procedure.
``(q) Waiver.--The Secretary shall establish a process through which
an agency or association may seek to have a requirement of this subpart
waived, if such agency or association--
``(1) demonstrates that such waiver is necessary to enable an
institution of higher education or program accredited by the
agency or association to implement innovative practices
intended to--
``(A) reduce administrative burdens to the
institution or program without creating costs for the
taxpayer; or
``(B) improve the delivery of services to students,
improve instruction or learning outcomes, or otherwise
benefit students; and
``(2) describes the terms and conditions that will be placed
upon the program or institution to ensure academic integrity
and quality.''.
SEC. 497. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) Eligibility and Certification Procedures.--Section 498 (20 U.S.C.
1099c) is amended--
(1) in subsection (a)--
(A) by striking ``For purposes of'' and inserting the
following:
``(1) In general.--For purposes of'';
(B) by inserting ``, subject to paragraph (2),''
after ``determine''; and
(C) by adding at the end the following:
``(2) Special rule.--The determination of whether an
institution of higher education is legally authorized to
operate in a State under section 101(a)(2) shall be based
solely on that State's laws.'';
(2) in subsection (b)(5), by striking ``B or D'' and
inserting ``E'';
(3) in subsection (c)--
(A) by redesignating paragraphs (4), (5), and (6) as
paragraphs (6), (7), and (8), respectively;
(B) by striking the subsection designation and all
that follows through the end of paragraph (3) and
inserting the following:
``(c) Financial Responsibility Standards.--(1) The Secretary shall
determine whether an institution has the financial responsibility
required by this title in accordance with paragraph (2).
``(2) An institution shall be determined to be financially
responsible by the Secretary, as required by this title, if the
institution is able to provide the services described in its official
publications and statements, is able to provide the administrative
resources necessary to comply with the requirements of this title, and
meets one of the following conditions:
``(A) Such institution has its liabilities backed by the full
faith and credit of a State, or its equivalent.
``(B) Such institution has a bond credit quality rating of
investment grade or higher from a recognized credit rating
agency.
``(C) Such institution has expendable net assets equal to not
less than one-half of the annual potential liabilities of such
institution to the Secretary for funds under this title,
including loan obligations discharged pursuant to section 437,
and to students for refunds of institutional charges, including
funds under this title, as calculated by an independent
certified public accountant in accordance with generally
accepted auditing standards.
``(D) Such institution establishes, with the support of a
financial statement audited by an independent certified public
accountant in accordance with generally accepted auditing
standards, that the institution has sufficient resources to
ensure against the precipitous closure of the institution,
including the ability to meet all of its financial obligations
(including refunds of institutional charges and repayments to
the Secretary for liabilities and debts incurred in programs
administered by the Secretary).
``(E) Such institution has met criteria, prescribed by the
Secretary by regulation in accordance with paragraph (3),
that--
``(i) establish ratios that demonstrate financial
responsibility in accordance with generally accepted
auditing standards as described in paragraph (7);
``(ii) incorporate the procedures described in
paragraph (4);
``(iii) establish consequences for failure to meet
the criteria described in paragraph (5); and
``(iv) take into account any differences in generally
accepted accounting principles, and the financial
statements required thereunder, that are applicable to
for-profit, public, and nonprofit institutions.
``(3) The criteria prescribed pursuant to paragraph (2)(E) shall
provide that the Secretary shall--
``(A) not later than 6 months after an institution that is
subject to the requirements of paragraph (2)(E) has submitted
its annual financial statement, provide to such institution a
notification of its preliminary score under such paragraph;
``(B) provide to each such institution a description of the
method used, and complete copies of all the calculations
performed, to determine the institution's score, if such
institution makes a request for such information within 45 days
after receiving the notice under subparagraph (A);
``(C) within 60 days of receipt by an institution of the
information described in subparagraph (B)--
``(i) allow the institution to correct or cure an
administrative, accounting, or recordkeeping error if
the error is not part of a pattern of errors and there
is no evidence of fraud or misconduct related to the
error;
``(ii) if the institution demonstrates that the
Secretary has made errors in its determination of the
initial score or has used non-standard accounting
practices in reaching its determination, notify the
institution that its composite score has been
corrected; and
``(iii) take into consideration any subsequent change
in the institution's overall fiscal health that would
raise the institution's score;
``(D) maintain and preserve at all times the confidentiality
of any review until such score is determined to be final; and
``(E) make a determination regarding whether the institution
has met the standards of financial responsibility based on an
audited and certified financial statement of the institution as
described in paragraph (7).
``(4) If the Secretary determines, after conducting an initial
review, that the institution has not met at least one of the conditions
described in subparagraphs (A) through (E) of paragraph (2) but has
otherwise met the requirements of such paragraph--
``(A) the Secretary shall request information relating to
such conditions for any affiliated or parent organization,
company, or foundation owning or owned by the institution; and
``(B) if such additional information demonstrates that an
affiliated or parent organization, company, or foundation
owning or owned by the institution meets at least one of the
conditions describe in subparagraphs (A) through (E) of
paragraph (2), the institution shall be determined to be
financially responsible as required by this title.
``(5) The Secretary shall establish policies and procedures to
address an institution's failure to meet the criteria of paragraph (2)
which shall include policies and procedures that--
``(A) require an institution that fails to meet the criteria
for three consecutive years to provide to the Secretary a
financial plan;
``(B) provide for additional oversight and cash monitoring
restrictions, as appropriate;
``(C) allow an institution to submit to the Secretary third-
party financial guarantees that the Secretary determines are
reasonable, such as performance bonds or letters of credit
payable to the Secretary, except that an institution may not be
required to obtain a letter of credit in order to be deemed
financially responsible unless--
``(i) the institution has been deemed not to be a
going concern, as determined by an independent
certified public accountant in accordance with
generally accepted auditing standards;
``(ii) the institution is determined by the Secretary
to be at risk of precipitous closure when the full
financial resources of the institution, including the
value of the institution's expendable endowment, are
considered; or
``(iii) the institution is determined by the
Secretary to be at risk of not meeting all of its
financial obligations, including refunds of
institutional charges and repayments to the Secretary
for liabilities and debts incurred in programs
administered by the Secretary; and
``(D) provide for the removal of all requirements related to
the institution's failure to meet the criteria once the
criteria are met.''; and
(C) in paragraph (7), as so redesignated, by striking
``paragraphs (2) and (3)(C)'' and inserting ``paragraph
(2)'';
(4) in subsection (g)(3)--
(A) by striking ``section 102(a)(1)(C)'' and
inserting ``section 102(a)(1)''; and
(B) by striking ``part B'' and inserting ``part D or
E'';
(5) in subsection (h)(2), by striking ``18'' and inserting
``36'';
(6) in subsection (i)(1), by striking ``section 102 (other
than the requirements in subsections (b)(5) and (c)(3))'' and
inserting ``sections 101 (other than the requirements in
subsections (b)(1)(A) and (b)(2)) and 102'';
(7) in subsection (j)(1), by striking ``meet the requirements
of sections 102(b)(1)(E) and 102(c)(1)(C)'' and inserting
``meet the requirements to be considered an institution of
higher education under sections 101(b)(1)(A) and 101(b)(2)'';
and
(8) in subsection (k)--
(A) in paragraph (1), by striking ``487(f)'' and
inserting ``487(e)''; and
(B) in paragraph (2)(A), by striking ``meet the
requirements of sections 102(b)(1)(E) and
102(c)(1)(C)'' and inserting ``meet the requirements to
be considered an institution of higher education under
sections 101(b)(1)(A) and 101(b)(2)''.
(b) Program Review and Data.--Section 498A (20 U.S.C. 1099c-1) is
amended--
(1) in subsection (a)(2)--
(A) by striking ``part B of'' both places it appears;
(B) in subparagraph (A), by inserting before the
semicolon at the end the following: ``, or after the
transition period described in section 481B(e)(3),
institutions in which 25 percent or more of the
educational programs have a loan repayment rate
(defined in section 481B(c)) for the most recent fiscal
year of less than 50 percent'';
(C) in subparagraph (B), by inserting before the
semicolon at the end the following: ``, except that
this subparagraph shall not apply after the transition
period described in section 481B(e)(3)''; and
(D) in subparagraph (C)--
(i) by inserting ``, Federal ONE Loan
volume'' after ``Stafford/Ford Loan volume'';
and
(ii) by inserting ``, Federal ONE Loan
program'' after ``Stafford/Ford Loan program'';
(2) in subsection (b)--
(A) by redesignating paragraphs (3) through (8) as
paragraphs (4) through (9), respectively;
(B) by inserting after paragraph (2) the following
new paragraph:
``(3) as practicable, provide a written explanation to the
institution of higher education detailing the Secretary's
reasons for initiating the program review which, if applicable,
shall include references to specific criteria under subsection
(a)(2);''; and
(C) in paragraph (9), as so redesignated--
(i) by striking ``paragraphs (6) and (7)''
and inserting ``paragraphs (7) and (8)''; and
(ii) by striking ``paragraph (5)'' and
inserting ``paragraph (6)''; and
(3) by adding at the end the following new subsection:
``(f) Time Limit on Program Review Activities.--In conducting,
responding to, and concluding program review activities, the Secretary
shall--
``(1) provide to the institution the initial report finding
not later than 90 days after concluding an initial site visit;
``(2) upon each receipt of an institution's response during a
program review inquiry, respond in a substantive manner within
90 days;
``(3) upon each receipt of an institution's written response
to a draft final program review report, provide the final
program review report and accompanying enforcement actions, if
any, within 90 days; and
``(4) conclude the entire program review process not later
than 2 years after the initiation of a program review, unless
the Secretary determines that such a review is sufficiently
complex and cannot reasonably be concluded before the
expiration of such 2-year period, in which case the Secretary
shall promptly notify the institution of the reasons for such
delay and provide an anticipated date for conclusion of the
review.''.
(c) Review of Regulations.--Section 498B(b) (20 U.S.C. 1099c-2(b)) is
amended by striking ``section 102(a)(1)(C)'' and inserting ``section
102(a)(1)''.
TITLE V--DEVELOPING INSTITUTIONS
SEC. 501. HISPANIC-SERVING INSTITUTIONS.
Part A of title V (20 U.S.C. 1101 et seq.) is amended--
(1) in section 502(a)--
(A) in paragraph (1), by striking ``institution for
instruction'' and inserting ``institution of higher
education for instruction'';
(B) in paragraph (2)(A)--
(i) by redesignating clauses (v) and (vi) as
clauses (vi) and (v), respectively;
(ii) in clause (v) (as so redesignated), by
inserting ``(as defined in section
103(20)(A))'' after ``State''; and
(iii) in clause (vi) (as so redesignated), by
striking ``and'' at the end; and
(C) in paragraph (2)--
(i) by striking the period at the end of
subparagraph (B) and inserting ``; and''; and
(ii) by inserting after subparagraph (B) the
following:
``(C) except as provided in section 522(b), an
institution that has a completion rate of at least 25
percent that is calculated by--
``(i) counting a student as completed if that
student graduated within 150 percent of the
normal time for completion; or
``(ii) counting a student as completed if
that student enrolled into another program at
an institution for which the previous program
provided substantial preparation within 150
percent of normal time for completion.'';
(2) in section 503--
(A) in subsection (b)--
(i) in paragraph (5), by striking
``counseling, and'' and inserting ``counseling,
advising, and'''
(ii) in paragraph (7), by striking ``funds
management'' and inserting ``funds and
administrative management'';
(iii) in paragraph (11), by striking
``Creating'' and all that follows through
``technologies,'' and inserting ``Innovative
learning models and creating or improving
facilities for Internet or other innovative
technologies,''; and
(iv) by redesignating paragraph (16) as
paragraph (20) and inserting after paragraph
(15) the following:
``(16) The development, coordination, implementation, or
improvement of career and technical education programs (as
defined in section 135 of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2355)).
``(17) Alignment and integration of career and technical
education programs with programs of study leading to a
bachelor's degree, graduate degree, or professional degree.
``(18) Developing or expanding access to dual or concurrent
enrollment programs and early college high school programs.
``(19) Pay for success initiatives that improve time to
completion and increase graduation rates.''; and
(B) in subsection (c), by adding at the end the
following:
``(4) Scholarship.--An institution that uses grant funds
provided under this part to establish or increase an endowment
fund may use the income from such endowment fund to provide
scholarships to students for the purposes of attending such
institution, subject to the limitation in section
331(c)(3)(B)(i).'';
(3) in section 504, by striking subsection (a) and inserting
the following:
``(a) Award Period.--The Secretary may award a grant to a Hispanic-
serving institution under this part for a period of 5 years. Any funds
awarded under this part that are not expended or used, before the date
that is 10 years after the date on which the grant was awarded, for the
purposes for which the funds were paid shall be repaid to the
Treasury.''; and
(4) in section 505, by striking ``this title'' each place
such term appears and inserting ``this part''.
SEC. 502. PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC
AMERICANS.
Part B of title V (20 U.S.C. 1102 et seq.) is amended--
(1) in section 513--
(A) by striking paragraph (1) and inserting the
following:
``(1) The activities described in (1) through (4), (11), and
(19) of section 503(b).'';
(B) by striking paragraphs (2) and (3); and
(C) by redesignating paragraphs (4) through (8) as
paragraphs (2) through (6), respectively; and
(D) in paragraph (4) (as so redesignated), by
striking ``Creating'' and all that follows through
``technologies,'' and inserting ``Innovative learning
models and creating or improving facilities for
Internet or other innovative technologies,''; and
(2) in section 514--
(A) by striking subsection (b) and inserting the
following:
``(b) Duration.--The Secretary may award a grant to a Hispanic-
serving institution under this part for a period of 5 years. Any funds
awarded under this part that are not expended or used for the purposes
for which the funds were paid within 10 years following the date on
which the grant was awarded shall be repaid to the Treasury.''; and
(B) by adding at the end the following:
``(d) Special Rule.--No Hispanic-serving institution that is eligible
for and receives funds under this part may receive funds under part A
or B of title III during the period for which funds under this part are
awarded.''.
SEC. 503. GENERAL PROVISIONS.
Part C of title V (20 U.S.C. 1103 et seq.) is amended--
(1) in section 521(c)(7)--
(A) by striking subparagraph (C);
(B) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(C) in subparagraph (D), as so redesignated, by
striking ``subparagraph (D)'' and inserting
``subparagraph (C)'';
(2) in section 522(b)--
(A) in the subsection heading, by inserting ``;
completion rates'' after ``expenditures'';
(B) in paragraph (1), by inserting ``or
502(a)(2)(C)'' after ``502(a)(2)(A)(ii)''; and
(C) in paragraph (2)--
(i) in the paragraph heading, by inserting
``and completion rates'' after
``Expenditures'';
(ii) in the matter preceding subparagraph
(A), by inserting ``or 502(a)(2)(C)'' after
``502(a)(2)(A)(ii)''; and
(iii) in subparagraph (A), by inserting ``or
section 502(a)(2)(C)'' after ``502(a)(2)(A)'';
(3) in section 524(c), by striking ``section 505'' and
inserting ``section 504''; and
(4) in section 528--
(A) in subsection (a), by striking ``parts A and C''
and all that follows through the period at the end and
inserting ``parts A and C, $107,795,000 for each of
fiscal years 2019 through 2024.''; and
(B) in subsection (b), by striking ``part B'' and all
that follows through the period at the end and
inserting ``part B, $9,671,000 for each of fiscal years
2019 through 2024.''.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.
(a) Graduate and Undergraduate Language and Area Centers and
Programs.--Section 602 (20 U.S.C. 1122) is amended--
(1) in subsection (a)(4)(F), by inserting ``(C),'' after
``(B),''; and
(2) in subsection (e)--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and realigning
such subparagraphs so as to be indented 4 ems from the
left margin;
(B) by striking ``(e) Application.--Each
institution'' and inserting the following:
``(e) Application.--
``(1) Submission; contents.--Each institution''; and
(C) by adding at the end the following new paragraph:
``(2) Approval.--The Secretary may approve an application for
a grant if an institution, in its application, provides
adequate assurances that it will comply with paragraph (1)(A).
The Secretary shall use the requirement of paragraph (1)(A) as
part of the application evaluation, review, and approval
process when determining grant recipients for initial funding
and continuation awards.''.
(b) Discontinuation of Certain Programs.--Part A of title VI (20
U.S.C. 1121 et seq.) is amended--
(1) by striking section 604;
(2) by striking section 606;
(3) by striking section 609; and
(4) by striking section 610.
(c) Conforming Amendment.--Part A of title VI (20 U.S.C. 1121 et
seq.) is further amended by redesignating sections 605, 607, and 608 as
sections 604, 605, and 606, respectively.
SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.
(a) Centers for International Business Education.--Section 612 (20
U.S.C. 1130-1) is amended--
(1) in subsection (f)(3), by inserting ``and a wide range of
views'' after ``diverse perspectives''; and
(2) by adding at the end the following new subsection:
``(g) Approval.--The Secretary may approve an application for a grant
if an institution, in its application, provides adequate assurances
that it will comply with subsection (f)(3). The Secretary shall use the
requirement of subsection (f)(3) as part of the application evaluation,
review, and approval process when determining grant recipients for
initial funding and continuation awards.''.
(b) Discontinuation of Certain Programs.--Part B of title VI (20
U.S.C. 1130 et seq.) is amended by striking sections 613 and 614.
SEC. 603. REPEAL OF ASSISTANCE PROGRAM FOR INSTITUTE FOR INTERNATIONAL
PUBLIC POLICY.
Part C of title VI (20 U.S.C. 1131 et seq.) is repealed.
SEC. 604. GENERAL PROVISIONS.
(a) Definitions.--Section 631(a) (20 U.S.C. 1132(a)) is amended--
(1) by striking paragraphs (5) and (9);
(2) in paragraph (8), by inserting ``and'' after the
semicolon at the end; and
(3) by redesignating paragraphs (6), (7), (8), and (10) as
paragraphs (5), (6), (7), and (8), respectively.
(b) Special Rule.--Section 632(2) (20 U.S.C. 1132-1(2)) is amended by
inserting ``substantial'' before ``need''.
(c) Reports.--Section 636 (20 U.S.C. 1132-5) is amended--
(1) by inserting ``(a) Biennial Report on Areas of National
Need.--'' before ``The Secretary''; and
(2) by adding at the end the following new subsection:
``(b) Annual Report on Compliance With Diverse Perspectives and a
Wide Range of Views Requirement.--Not later than 180 days after the
date of the enactment of this subsection, and annually thereafter, the
Secretary shall submit to the authorizing committees a report that
identifies the efforts taken to ensure recipients' compliance with the
requirements under this title relating to the `diverse perspectives and
a wide range of views' requirement, including any technical assistance
the Department has provided, any regulatory guidance the Department has
issued, and any monitoring the Department has conducted. Such report
shall be made available to the public.''.
(d) Repeal of Science and Technology Advanced Foreign Language
Education Grant Program.--Section 637 (20 U.S.C. 1132-6) is repealed.
(e) Reporting by Institutions.--Section 638(b) (20 U.S.C. 1132-7(b))
is amended to read as follows:
``(b) Data Required.--
``(1) In general.--Except as provided in paragraph (5), the
Secretary shall require an institution of higher education
referred to in subsection (a) to file a disclosure report under
paragraph (2) with the Secretary on January 31 or July 31,
whichever is sooner, with respect to the date on which such
institution received a contribution--
``(A) less than 7 months from such date; and
``(B) greater than 30 days from such date.
``(2) Contents of report.--Each report to the Secretary
required by this section shall contain the following
information with respect to the institution of higher education
filing the report:
``(A) For gifts received from, or contracts entered
into with a foreign source other than a foreign
government, the following information:
``(i) The aggregate dollar amount of such
gifts and contracts attributable to each
country, including the fair market value of the
services of staff members, textbooks, and other
in-kind gifts.
``(ii) The legal name of the entity providing
any such gift or contract.
``(iii) The country to which the gift is
attributable.
``(B) For gifts received from, or contracts entered
into with, a foreign government, the aggregate dollar
amount of such gifts and contracts received from each
foreign government and the legal name of the entity
providing any such gift or contract.
``(C) In the case of an institution of higher
education that is owned or controlled by a foreign
source--
``(i) the identity of the foreign source;
``(ii) the date on which the foreign source
assumed ownership or control of the
institution; and
``(iii) any changes in program or structure
resulting from the change in ownership or
control.
``(3) Additional disclosures for restricted and conditional
gifts.--Notwithstanding paragraph (1), when an institution of
higher education receives a restricted or conditional gift or
contract from a foreign source, the institution shall disclose
the following:
``(A) In the case of gifts received from, or
contracts entered into with, a foreign source other
than a foreign government, the amount, the date, and a
description of such conditions or restrictions.
``(B) The country to which the gift is attributable.
``(C) In the case of gifts received from, or
contracts entered into with, a foreign government, the
amount, the date, a description of such conditions or
restrictions, and the name of the foreign government.
``(4) Attribution of gifts.--For purposes of this subsection,
the country to which a gift is attributable is--
``(A) the country of citizenship; or
``(B) if the information described in subparagraph
(A) is not known--
``(i) the principal residence for a foreign
source who is a natural person; or
``(ii) the principal place of business and
country of incorporation for a foreign source
that is a legal entity.
``(5) Relation to other reporting requirements.--
``(A) State requirements.--If an institution
described under subsection (a) is located within a
State that has enacted requirements for public
disclosure of gifts from, or contracts with, a foreign
source that are substantially similar to the
requirements of this section, as determined by the
Secretary, a copy of the disclosure report filed with
the State may be filed with the Secretary in lieu of a
report required under paragraph (1).
``(B) Assurances.--With respect to an institution
that submits a copy of a disclosure report pursuant to
subparagraph (A), the State in which such institution
is located shall provide to the Secretary such
assurances as the Secretary may require to establish
that the institution has met the requirements for
public disclosure under the laws of such State.
``(C) Use of other federal reports.--If an
institution receives a gift from, or enters into a
contract with, a foreign source, where any other
Federal law or regulation requires a report containing
requirements substantially similar to the requirements
under this section, as determined by the Secretary, a
copy of the report may be filed with the Secretary in
lieu of a report required under subsection (b).
``(6) Public inspection.--A disclosure report required by
this section shall be--
``(A) available as public records open to inspection
and copying during business hours;
``(B) available electronically; and
``(C) made available under subparagraphs (A) and (B)
not later than 30 days after the Secretary receives
such report.
``(7) Enforcement.--
``(A) Compel compliance.--Whenever it appears that an
institution has failed to comply with the requirements
of this section, including any rule or regulation
promulgated under this section, a civil action may be
brought by the Attorney General, at the request of the
Secretary, in an appropriate district court of the
United States, or the appropriate United States court
of any territory or other place subject to the
jurisdiction of the United States, to request such
court to compel compliance with the requirements of
this section.
``(B) Costs.--For knowing or willful failure to
comply with the requirements of this section, including
any rule or regulation promulgated thereunder, an
institution shall pay to the Treasury of the United
States the full costs to the United States of obtaining
compliance, including all associated costs of
investigation and enforcement.
``(8) Definitions.--In this section:
``(A) Contract.--The term `contract' means any
agreement for the acquisition by purchase, lease, gift,
or barter of property or services by the foreign
source, for the direct benefit or use of either of the
parties.
``(B) Foreign source.--The term `foreign source'
means--
``(i) a foreign government, including an
agency of a foreign government;
``(ii) a legal entity, governmental or
otherwise, created solely under the laws of a
foreign state or states;
``(iii) an individual who is not a citizen or
a national of the United States or a trust
territory or protectorate thereof; and
``(iv) an agent, including a subsidiary or
affiliate of a foreign legal entity, acting on
behalf of a foreign source.
``(C) Gift.--The term `gift' means any gift of money,
property, human resources, or payment of any staff.
``(D) Restricted or conditional.--The term
`restricted or conditional', with respect to an
endowment, gift, grant, contract, award, present, or
property of any kind means including as a condition on
such endowment, gift, grant, contract, award, present,
or property provisions regarding--
``(i) the employment, assignment, or
termination of faculty;
``(ii) the establishment of departments,
centers, research or lecture programs,
institutes, instructional programs, or new
faculty positions;
``(iii) the selection or admission of
students; or
``(iv) the award of grants, loans,
scholarships, fellowships, or other forms of
financial aid restricted to students of a
specified country, religion, sex, ethnic
origin, or political opinion.''.
(f) Redesignations.--Part D of title VI (20 U.S.C. 1132 et seq.) is
amended--
(1) by redesignating such part as part C; and
(2) by redesignating sections 631, 632, 633, 634, 635, 636,
and 638 as sections 621, 622, 623, 624, 625, 626, and 627,
respectively.
(g) Continuation Awards.--Part C of title VI (20 U.S.C. 1131 et
seq.), as so redesignated by subsection (f)(1) of this section, is
amended by adding at the end the following new sections:
``SEC. 628. CONTINUATION AWARDS.
``The Secretary shall make continuation awards under this title for
the second and succeeding years of a grant only after determining that
the recipient is making satisfactory progress in carrying out the
stated grant objectives approved by the Secretary.
``SEC. 629. COMPLIANCE WITH DIVERSE PERSPECTIVE AND A WIDE RANGE OF
VIEWS.
``When complying with the requirement of this title to offer a
diverse perspective and a wide range of views, a recipient of a grant
under this title shall not promote any biased views that are
discriminatory toward any group, religion, or population of people.
``SEC. 630. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this title
$61,525,000 for each of fiscal years 2019 through 2024.''.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
SEC. 701. GRADUATE EDUCATION PROGRAMS.
(a) Repeal of Jacob K. Javits Fellowship Program.--Subpart 1 of part
A of title VII (20 U.S.C. 1134 et seq.) is repealed.
(b) Repeal of Thurgood Marshall Legal Educational Opportunity
Program.--Subpart 3 of part A of title VII (20 U.S.C. 1136) is
repealed.
(c) Authorization of Appropriations for Graduate Assistance in Areas
of National Need.--Section 716 (20 U.S.C. 1135e) is amended striking
``$35,000,000'' and all that follows through the period at the end and
inserting ``$28,047,000 for each of fiscal years 2019 through 2024.''.
(d) Redesignations.--Part A of title VII (20 U.S.C. 1134 et seq.) is
amended--
(1) by redesignating subparts 2, 4, and 5 as subparts 1, 2,
and 3 respectively;
(2) by redesignating sections 711 through 716 as sections 701
through 706, respectively;
(3) by redesignating sections 723 through 725 as sections 711
through 713, respectively; and
(4) by redesignating section 731 as section 721.
(e) Amendment of Cross References.--Part A of title VII (20 U.S.C.
1134 et seq.) is amended--
(1) in section 703(b)(8), as so redesignated, by striking
``section 715'' and inserting ``section 705'';
(2) in section 704(c)), as so redesignated--
(A) by striking ``section 715(a)'' and inserting
``section 705(a)''; and
(B) by striking ``section 713(b)(2)'' and inserting
``section 703(b)(2)'';
(3) in section 711(e), as so redesignated, by striking
``724'' and inserting ``712'';
(4) in section 712(e), as so redesignated, by striking
``723'' and inserting ``711'';
(5) in section 713, as so redesignated--
(A) in subsection (a), by striking ``section 723''
and all that follows through the period at the end and
inserting ``section 711, $7,500,000 for fiscal year
2019 and each of the five succeeding fiscal years.'';
and
(B) in subsection (b), by striking ``section 724''
and inserting ``section 712''; and
(6) in section 721, as so redesignated--
(A) in the section heading, by striking ``through 4''
and inserting ``and 2'';
(B) by striking ``subparts 1 through 4'' each place
such term appears and inserting ``subparts 1 and 2'';
(C) in subsection (c)--
(i) by striking ``section 703(b) or 715(a)''
and inserting ``section 705(a)''; and
(ii) by striking ``subpart 1 or 2,
respectively,'' and inserting ``subpart 1'';
and
(D) in subsection (d), by striking ``subpart 1, 2, 3,
or 4'' and inserting ``subpart 1 or 2''.
SEC. 702. REPEAL OF FUND FOR THE IMPROVEMENT OF POSTSECONDARY
EDUCATION.
Part B of title VII (20 U.S.C. 1138 et seq.) is repealed.
SEC. 703. PROGRAMS FOR STUDENTS WITH DISABILITIES.
(a) Redesignations.--
(1) Subpart.--Part D of title VII (20 U.S.C. 1140 et seq.) is
amended by striking subparts 1 and 3 and redesignating subparts
2 and 4 as subparts 1 and 2, respectively.
(2) Part.--Part D of title VII (20 U.S.C. 1140 et seq.), as
amended by paragraph (1), is redesignated as part B of such
Act.
(3) Definitions.--Section 760 (20 U.S.C. 1140) is
redesignated as section 730 of such Act.
(b) Model Transition Programs; Coordinating Center.--
(1) Purpose.--Section 766 (20 U.S.C. 1140f) is redesignated
as section 731 of such Act.
(2) Model comprehensive transition and postsecondary
programs.--Section 767 (20 U.S.C. 1140g) is amended--
(A) by redesignating such section as section 732 of
such Act;
(B) in subsection (a)(1)--
(i) by striking ``section 769(a)'' and
inserting ``section 736(a)''; and
(ii) by striking ``institutions of higher
education (or consortia of institutions of
higher education), to enable the institutions
or consortia'' and inserting ``eligible
applicants, to enable the eligible
applicants'';
(C) by striking subsection (b) and inserting the
following:
``(b) Application.--An eligible applicant desiring a grant under this
section shall submit to the Secretary, at such time and in such manner
as the Secretary may require, an application that--
``(1) describes how the model program to be operated by the
eligible applicant with grant funds received under this section
will meet the requirements of subsection (d);
``(2) describes how the model program proposed to be operated
is based on the demonstrated needs of students with
intellectual disabilities served by the eligible applicant and
potential employers;
``(3) describes how the model program proposed to be operated
will coordinate with other Federal, State, and local programs
serving students with intellectual disabilities, including
programs funded under the Rehabilitation Act of 1973 (29 U.S.C.
701 et seq.);
``(4) describes how the model program will be sustained once
the grant received under this section ends;
``(5) if applicable, describes how the eligible applicant
will meet the preferences described in subsection (c)(3); and
``(6) demonstrates the ability of the eligible applicant to
meet the requirement under subsection (e).''.
(D) in subsection (c)(3)--
(i) in subparagraph (B), by striking
``institution of higher education'' and
inserting ``eligible applicant''; and
(ii) in subparagraph (C), by striking
``students attending the institution of higher
education'' and inserting ``the eligible
applicant's students'';
(E) in subsection (d)--
(i) in the matter preceding paragraph (1), by
striking ``An institution of higher education
(or consortium)'' and inserting ``An eligible
applicant'';
(ii) in paragraph (2), by striking
``institution of higher education's'' and
inserting ``eligible applicant's'';
(iii) in paragraph (3)(D), by striking ``that
lead to gainful employment'';
(iv) in paragraph (5), by striking ``section
777(b)'' and inserting ``section 734'';
(v) in paragraph (6), by inserting ``and''
after the semicolon at the end;
(vi) by striking paragraph (7); and
(vii) by redesignating paragraph (8) as
paragraph (7);
(F) in subsection (e), by striking ``An institution
of higher education (or consortium)'' and inserting
``An eligible applicant'';
(G) in subsection (f), by striking ``Not later than
five years after the date of the first grant awarded
under this section'' and inserting ``Not less often
than once every 5 years''; and
(H) by adding at the end the following new
subsection:
``(g) Definition.--For purposes of this subpart, the term `eligible
applicant' means an institution of higher education or a consortium of
institutions of higher education.''.
(3) Redesignations.--Sections 768 and 769 (20 U.S.C. 1140i)
are redesignated as sections 733 and 736, respectively.
(4) Coordinating center and commission.--Subpart 1 of part D
of title VII, as so redesignated by subsection (a)(1), is
amended by inserting after section 733 (as so redesignated by
paragraph (3)) the following:
``SEC. 734. COORDINATING CENTER.
``(a) Purpose.--It is the purpose of this section to provide
technical assistance and information on best and promising practices to
eligible applicants awarded grants under section 732.
``(b) Coordinating Center.--
``(1) Definition of eligible entity.--In this section, the
term `eligible entity' means an entity, or a partnership of
entities, that has demonstrated expertise in the fields of--
``(A) higher education;
``(B) the education of students with intellectual
disabilities;
``(C) the development of comprehensive transition and
postsecondary programs for students with intellectual
disabilities; and
``(D) evaluation and technical assistance.
``(2) In general.--From amounts appropriated under section
736, the Secretary shall enter into a cooperative agreement, on
a competitive basis, with an eligible entity for the purpose of
establishing a coordinating center for institutions of higher
education that offer inclusive comprehensive transition and
postsecondary programs for students with intellectual
disabilities, including eligible applicants receiving grants
under section 732, to provide--
``(A) recommendations related to the development of
standards for such programs;
``(B) technical assistance for such programs; and
``(C) evaluations for such programs.
``(3) Administration.--The program under this section shall
be administered by the office in the Department that
administers other postsecondary education programs.
``(4) Duration.--A cooperative agreement entered into
pursuant to this section shall have a term of 5 years.
``(5) Requirements of cooperative agreement.--The cooperative
agreement entered into pursuant to this section shall provide
that the eligible entity entering into such agreement shall
establish and maintain a coordinating center that shall--
``(A) serve as the technical assistance entity for
all comprehensive transition and postsecondary programs
for students with intellectual disabilities;
``(B) provide technical assistance regarding the
development, evaluation, and continuous improvement of
such programs;
``(C) develop an evaluation protocol for such
programs that includes qualitative and quantitative
methodologies for measuring student outcomes and
program strengths in the areas of academic enrichment,
socialization, independent living, and competitive or
supported employment;
``(D) assist recipients of grants under section 732
in efforts to award a meaningful credential to students
with intellectual disabilities upon the completion of
such programs, which credential shall take into
consideration unique State factors;
``(E) develop recommendations for the necessary
components of such programs, such as--
``(i) academic, vocational, social, and
independent living skills;
``(ii) evaluation of student progress;
``(iii) program administration and
evaluation;
``(iv) student eligibility; and
``(v) issues regarding the equivalency of a
student's participation in such programs to
semester, trimester, quarter, credit, or clock
hours at an institution of higher education, as
the case may be;
``(F) analyze possible funding sources for such
programs and provide recommendations to such programs
regarding potential funding sources;
``(G) develop model memoranda of agreement for use
between or among institutions of higher education and
State and local agencies providing funding for such
programs;
``(H) develop mechanisms for regular communication,
outreach, and dissemination of information about
comprehensive transition and postsecondary programs for
students with intellectual disabilities under section
732 between or among such programs and to families and
prospective students;
``(I) host a meeting of all recipients of grants
under section 732 not less often than once every 3
years; and
``(J) convene a workgroup to develop and recommend
model criteria, standards, and components of such
programs as described in subparagraph (E) that are
appropriate for the development of accreditation
standards, which workgroup shall include--
``(i) an expert in higher education;
``(ii) an expert in special education;
``(iii) a representative of a disability
organization that represents students with
intellectual disabilities;
``(iv) a representative from the National
Advisory Committee on Institutional Quality and
Integrity; and
``(v) a representative of a regional or
national accreditation agency or association.
``(6) Report.--Not less often than once every 5 years, the
coordinating center shall report to the Secretary, the
authorizing committees, and the National Advisory Committee on
Institutional Quality and Integrity on the recommendations of
the workgroup described in paragraph (5)(J).
``SEC. 735. ACCESSIBLE INSTRUCTIONAL MATERIALS IN HIGHER EDUCATION.
``(a) Commission Structure.--
``(1) Establishment of commission.--
``(A) In general.--The Speaker of the House of
Representatives, the President pro tempore of the
Senate, and the Secretary of Education shall establish
an independent commission, comprised of key
stakeholders, to develop voluntary guidelines for
accessible postsecondary electronic instructional
materials and related technologies in order--
``(i) to ensure students with disabilities
are afforded the same educational benefits
provided to nondisabled students through the
use of electronic instructional materials and
related technologies;
``(ii) to inform better the selection and use
of such materials and technologies at
institutions of higher education; and
``(iii) to encourage entities that produce
such materials and technologies to make
accessible versions more readily available in
the market.
In fulfilling this duty, the commission shall review
applicable national and international information
technology accessibility standards, which it will
compile and annotate as an additional information
resource for institutions of higher education and
companies that service the higher education market.
``(B) Membership.--
``(i) Stakeholder groups.--The commission
shall be composed of representatives from the
following categories:
``(I) Disability.--Communities of
persons with disabilities for whom the
accessibility of postsecondary
electronic instructional materials and
related technologies is a significant
factor in ensuring equal participation
in higher education, and nonprofit
organizations that provide accessible
electronic materials to these
communities.
``(II) Higher education.--Higher
education leadership, which includes:
university presidents, provosts, deans,
vice presidents, deans of libraries,
chief information officers, and other
senior institutional executives.
``(III) Industry.--Relevant industry
representatives, meaning--
``(aa) developers of
postsecondary electronic
instructional materials; and
``(bb) manufacturers of
related technologies.
``(ii) Appointment of members.--The
commission members shall be appointed as
follows:
``(I) Six members, 2 from each
category described in clause (i), shall
be appointed by the Speaker of the
House of Representatives, 3 of whom
shall be appointed on the
recommendation of the majority leader
of the House of Representatives and 3
of whom shall be appointed on the
recommendation of the minority leader
of the House of Representatives, with
the Speaker ensuring that 1 developer
of postsecondary electronic
instructional materials and 1
manufacturer of related technologies
are appointed. The Speaker shall also
appoint 2 additional members, 1 student
with a disability and 1 faculty member
from an institution of higher
education.
``(II) Six members, 2 from each
category described in clause (i), shall
be appointed by the President pro
tempore of the Senate, 3 of whom shall
be appointed on the recommendation of
the majority leader of the Senate and 3
of whom shall be appointed on the
recommendation of the minority leader
of the Senate, with the President pro
tempore ensuring that 1 developer of
postsecondary electronic instructional
materials and 1 manufacturer of related
technologies are appointed. The
President pro tempore shall also
appoint 2 additional members, 1 student
with a disability and 1 faculty member
from an institution of higher
education.
``(III) Three members, each of whom
must possess extensive, demonstrated
technical expertise in the development
and implementation of accessible
postsecondary electronic instructional
materials, shall be appointed by the
Secretary of Education. One of these
members shall represent postsecondary
students with disabilities, 1 shall
represent higher education leadership,
and 1 shall represent developers of
postsecondary electronic instructional
materials.
``(iii) Eligibility to serve on the
commission.--Federal employees are ineligible
for appointment to the commission. An appointee
to a volunteer or advisory position with a
Federal agency or related advisory body may be
appointed to the commission so long as his or
her primary employment is with a non-Federal
entity and he or she is not otherwise engaged
in financially compensated work on behalf of
the Federal Government, exclusive of any
standard expense reimbursement or grant-funded
activities.
``(2) Authority and administration.--
``(A) Authority.--The commission's execution of its
duties shall be independent of the Secretary of
Education, the Attorney General, and the head of any
other agency or department of the Federal Government
with regulatory or standard setting authority in the
areas addressed by the commission.
``(B) Administration.--
``(i) Staffing.--There shall be no permanent
staffing for the commission.
``(ii) Leadership.--Commission members shall
elect a chairperson from among the 19
appointees to the commission.
``(iii) Administrative support.--The
Commission shall be provided administrative
support, as needed, by the Secretary of
Education through the Office of Postsecondary
Education of the Department of Education.
``(C) Termination.--The Commission shall terminate on
the day after the date on which the Commission issues
the voluntary guidelines and annotated list of
information technology standards described in
subsection (b), or two years from the date of enactment
of the PROSPER Act, whichever comes first.
``(b) Duties of the Commission.--
``(1) Produce voluntary guidelines.--Not later than 18 months
after the date of enactment of the PROSPER Act, subject to a 6-
month extension that it may exercise at its discretion, the
commission established in subsection (a) shall--
``(A) develop and issue voluntary guidelines for
accessible postsecondary electronic instructional
materials and related technologies; and
``(B) in developing the voluntary guidelines, the
commission shall--
``(i) establish a technical panel pursuant to
paragraph (4) to support the commission in
developing the voluntary guidelines;
``(ii) develop criteria for determining which
materials and technologies constitute
`postsecondary electronic instructional
materials' and `related technologies' as
defined in subparagraphs (D) and (E) of
subsection (f);
``(iii) identify existing national and
international accessibility standards that are
relevant to student use of postsecondary
electronic instructional materials and related
technologies at institutions of higher
education;
``(iv) identify and address any unique
pedagogical and accessibility requirements of
postsecondary electronic instructional
materials and related technologies that are not
addressed, or not adequately addressed, by the
identified, relevant existing accessibility
standards;
``(v) identify those aspects of
accessibility, and types of postsecondary
instructional materials and related
technologies, for which the commission cannot
produce guidelines or which cannot be addressed
by existing accessibility standards due to--
``(I) inherent limitations of
commercially available technologies; or
``(II) the challenges posed by a
specific category of disability that
covers a wide spectrum of impairments
and capabilities which makes it
difficult to assess the benefits from
particular guidelines on a categorical
basis;
``(vi) ensure that the voluntary guidelines
are consistent with the requirements of section
504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) and titles II and III of the
Americans with Disabilities Act (42 U.S.C.
12131 et seq.; 42 U.S.C. 12181 et seq.);
``(vii) ensure that the voluntary guidelines
are consistent, to the extent feasible and
appropriate, with the technical and functional
performance criteria included in the national
and international accessibility standards
identified by the commission as relevant to
student use of postsecondary electronic
instructional materials and related
technologies;
``(viii) allow for the use of an alternative
design or technology that results in
substantially equivalent or greater
accessibility and usability by individuals with
disabilities than would be provided by
compliance with the voluntary guidelines; and
``(ix) provide that where electronic
instructional materials or related technologies
that comply fully with the voluntary guidelines
are not commercially available, or where such
compliance is not technically feasible, the
institution may select the product that best
meets the voluntary guidelines consistent with
the institution's business and pedagogical
needs.
``(2) Produce annotated list of information technology
standards.--Not later than 18 months after the date of the
enactment of the PROSPER Act, subject to a 6-month extension
that it may exercise at its discretion, the commission
established in subsection (a) shall, with the assistance of the
technical panel established under paragraph (4), develop and
issue an annotated list of information technology standards.
``(3) Supermajority approval.--Issuance of the voluntary
guidelines and annotated list of information technology
standards shall require approval of at least 75 percent (at
least 15) of the 19 members of the commission.
``(4) Establishment of technical panel.--Not later than 1
month after the Commission's first meeting, it shall appoint
and convene a panel of 12 technical experts, each of whom shall
have extensive, demonstrated technical experience in
developing, researching, or implementing accessible
postsecondary electronic instructional materials or related
technologies. The commission has discretion to determine a
process for nominating, vetting, and confirming a panel of
experts that fairly represents the stakeholder communities on
the commission. The technical panel shall include a
representative from the United States Access Board.
``(c) Periodic Review and Revision of Voluntary Guidelines.--Not
later than 5 years after issuance of the voluntary guidelines and
annotated list of information technology standards described in
paragraphs (1) and (2) of section (b), and every 5 years thereafter,
the Secretary of Education shall publish a notice in the Federal
Register requesting public comment about whether there is a need to
reconstitute the commission to update the voluntary guidelines and
annotated list of information technology standards to reflect
technological advances, changes in postsecondary electronic
instructional materials and related technologies, or updated national
and international accessibility standards. The Secretary shall submit a
report to Congress summarizing the public comments and presenting the
Secretary's decision on whether to reconstitute the commission based on
those comments. If the Secretary decides to reconstitute the
commission, the Secretary may implement that decision 30 days after the
date on which the report was submitted to Congress. That process shall
begin with the Secretary requesting the appointment of commission
members as detailed in subsection (a)(1)(B)(ii). If the Secretary
reconstitutes the Commission, the Commission shall terminate on the day
after the date on which the Commission issues updated voluntary
guidelines and annotated list of information technology standards, or
two years from the date on which the Secretary reconstitutes the
Commission, whichever comes first.
``(d) Safe Harbor Protections.--The following defenses from liability
may be asserted with respect to claims regarding the use of
postsecondary instructional materials and related technologies arising
under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and
titles II and III of the Americans with Disabilities Act of 1990 (42
U.S.C. 12131 et seq. and 12181 et seq.), subject to the judicial review
afforded under those Acts and without limiting any other defenses
provided under those Acts:
``(1) Safe harbor for conforming postsecondary electronic
instructional materials and related technologies.--An
institution of higher education that requires, provides, or
both recommends and provides, postsecondary electronic
instructional materials or related technologies that conform to
the voluntary guidelines shall be deemed in compliance with,
and qualify for a safe harbor from liability in relation to,
its obligations under section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794) and titles II and III of the Americans
with Disabilities Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 12181
et seq.) with respect to its selection of such materials or
technologies.
``(2) Limited safe harbor for nonconforming postsecondary
electronic instructional materials or related technologies.--An
institution of higher education that requires, provides, or
both recommends and provides, postsecondary electronic
instructional materials or related technologies that do not
fully conform with the voluntary guidelines, but which
institution otherwise complies with all requirements set forth
in subparagraphs (A), (B), and (C), will qualify for a limited
safe harbor from monetary damages under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II and
III of the Americans with Disabilities Act (42 U.S.C. 12131 et
seq.; 42 U.S.C. 12181 et seq.), with available remedies under
section 505 of the Rehabilitation Act of 1973 (29 U.S.C. 794a),
section 103 of the Americans with Disabilities Act of 1990 (42
U.S.C. 12133), and section 308 of such Act (42 U.S.C. 12188)
limited to declaratory and injunctive relief, and for a
prevailing party other than the United States, a reasonable
attorney's fee, if the institution--
``(A) documented its efforts to incorporate and use
the voluntary guidelines in its policies and practices
regarding its selection or procurement of postsecondary
electronic instructional materials and related
technologies. These efforts may include establishment
of a written policy regarding the institution's use of
the voluntary guidelines, identifying the official(s)
authorized to approve the selection of nonconforming
postsecondary electronic instructional materials or
related technologies, and procedures used by the
official(s) when making such authorizations;
``(B) documented instances where nonconforming
postsecondary electronic instructional materials or
related technologies are selected or procured,
including an explanation of--
``(i) the process utilized for identifying
accessible options in the marketplace;
``(ii) the options considered, if any are
available;
``(iii) the choice the institution ultimately
made and why;
``(iv) what auxiliary aid or service,
reasonable modification, or other method the
institution will utilize to ensure that
affected students within categories of
disability are afforded the rights to which
they are entitled under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and
titles II and III of the Americans with
Disabilities Act (42 U.S.C. 12131 et seq.; 42
U.S.C. 12181 et seq.), including an equally
effective opportunity to receive the same
educational benefit as afforded to nondisabled
students; and
``(v) where a student or students with
disabilities are affected by nonconforming
instructional materials or related
technologies, what auxiliary aid or service,
reasonable modification, or other method the
institution is using to ensure the student or
students are afforded the rights described in
clause (iv); and
``(C) posted a link to an accessible copy of the
voluntary guidelines and annotated list of information
technology standards on a publicly available page of
its website.
``(e) Construction.--
``(1) Nonconforming postsecondary electronic instructional
materials or related technologies.--Nothing in this section
shall be construed to require an institution of higher
education to require, provide, or both recommend and provide,
postsecondary electronic instructional materials or related
technologies that conform to the voluntary guidelines. However,
an institution that selects or uses nonconforming postsecondary
electronic instructional materials or related technologies must
otherwise comply with existing obligations under section 504 of
the Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II
and III of the Americans with Disabilities Act (42 U.S.C. 12131
et seq.; 42 U.S.C. 12181 et seq.) to provide access to the
educational benefit afforded by such materials and technologies
through provision of appropriate and reasonable modification,
accommodation, and auxiliary aids or services.
``(2) Relationship to existing laws and regulations.--With
respect to the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.) and the Rehabilitation Act of 1973 (29
U.S.C. 701 et seq.), except as provided in subsection (d),
nothing in this section may be construed--
``(A) to authorize or require conduct prohibited
under the Americans with Disabilities Act of 1990 and
the Rehabilitation Act of 1973, including the
regulations issued pursuant to those laws;
``(B) to expand, limit, or alter the remedies or
defenses under the Americans with Disabilities Act of
1990 and the Rehabilitation Act of 1973;
``(C) to supersede, restrict, or limit the
application of the Americans with Disabilities Act of
1990 and the Rehabilitation Act of 1973; or
``(D) to limit the authority of Federal agencies to
issue regulations pursuant to the Americans with
Disabilities Act of 1990 and the Rehabilitation Act of
1973.
``(3) Voluntary nature of the products of the commission.--
``(A) Voluntary guidelines.--It is the intent of the
Congress that use of the voluntary guidelines developed
pursuant to this section is and should remain
voluntary. The voluntary guidelines shall not confer
any rights or impose any obligations on commission
participants, institutions of higher education, or
other persons, except for the legal protections set
forth in subsection (d). Thus, no department or agency
of the Federal Government may incorporate the voluntary
guidelines, whether produced as a discrete document or
electronic resource, into regulations promulgated under
the Rehabilitation Act, the Americans with Disabilities
Act, or any other Federal law or instrument. This
restriction applies only to the voluntary guidelines as
a discrete document or resource; it imposes no
limitation on Federal use of standards or resources to
which the voluntary guidelines may refer.
``(B) Annotated list.--It is the intent of Congress
that use of the annotated list of information
technology standards developed pursuant to this section
is and should remain voluntary. The Annotated List
shall not confer any rights or impose any obligations
on Commission participants, institutions of higher
education, or other persons. Thus, no department or
agency of the Federal Government may incorporate the
Annotated List, whether produced as a discrete document
or electronic resource into regulations promulgated
under the Rehabilitation Act, the Americans with
Disabilities Act, or any other Federal law or
instrument. This provision applies only to the
Annotated List as a discrete document or resource; it
imposes no limitation on Federal use of standards or
resources to which the Annotated List may refer.
``(f) Definitions.--In this section, the following definitions apply:
``(1) Annotated list of information technology standards.--
The term `annotated list of information technology standards'
means a list of existing national and international
accessibility standards relevant to student use of
postsecondary electronic instructional materials and related
technologies, and to other types of information technology
common to institutions of higher education (such as
institutional websites and class registration systems),
annotated by the commission established pursuant to subsection
(a) to provide information about the applicability of such
standards in higher education settings. The annotated list of
information technology standards is intended to serve solely as
a reference tool to inform any consideration of the relevance
of such standards in higher education contexts.
``(2) Disability.--The term `disability' has the meaning
given such term in section 3 of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12102).
``(3) Nonconforming postsecondary electronic instructional
materials or related technologies.--The term `nonconforming
materials or related technologies' means postsecondary
electronic instructional materials or related technologies that
do not conform to the voluntary guidelines to be developed
pursuant to this subpart.
``(4) Postsecondary electronic instructional materials.--The
term `postsecondary electronic instructional materials' means
digital curricular content that is required, provided, or both
recommended and provided by an institution of higher education
for use in a postsecondary instructional program.
``(5) Related technologies.--The term `related technologies'
refers to any software, applications, learning management or
content management systems, and hardware that an institution of
higher education requires, provides, or both recommends and
provides for student access to and use of postsecondary
electronic instructional materials in a postsecondary
instructional program.
``(6) Technical panel.--The term `technical panel' means a
group of experts with extensive, demonstrated technical
experience in the development and implementation of
accessibility features for postsecondary electronic
instructional materials and related technologies, established
by the Commission pursuant to subsection (b)(4), which will
assist the commission in the development of the voluntary
guidelines and annotated list of information technology
standards authorized under this subpart.
``(7) Voluntary guidelines.--The term `voluntary guidelines'
means a set of technical and functional performance criteria to
be developed by the commission established pursuant to
subsection (a) that provide specific guidance regarding both
the accessibility and pedagogical functionality of
postsecondary electronic instructional materials and related
technologies not addressed, or not adequately addressed, by
existing accessibility standards.''.
(5) Authorization of appropriations.--Section 736, as so
redesignated by paragraph (3), is amended--
(A) in subsection (a), by striking ``such sums as may
be necessary for fiscal year 2009'' and inserting
``$11,800,000 for fiscal year 2019''; and
(B) by striking subsection (b) and inserting the
following:
``(b) Reservation of Funds.--For any fiscal year for which
appropriations are made for this subpart, the Secretary--
``(1) shall reserve funds to enter into a cooperative
agreement to establish the coordinating center under section
734, in an amount that is equal to--
``(A) not less than $240,000 for any year in which
the amount appropriated to carry out this subpart is
$8,000,000 or less; or
``(B) equal to 3 percent of the amount appropriated
to carry out this subpart for any year in which such
amount appropriated is greater than $8,000,000; and
``(2) may reserve funds to award the grant, contract, or
cooperative agreement described in section 742.''.
(c) National Technical Assistance Center.--
(1) Subpart heading.--The subpart heading for subpart 2 of
part B of title VII (20 U.S.C. 1140p et seq.), as redesignated
by subsection (a), is amended by striking ``; Coordinating
Center''.
(2) Purpose.--Section 776 (20 U.S.C. 1140p) is amended--
(A) by redesignating such section as section 741 of
such Act; and
(B) by striking ``grants, contracts, or cooperative
agreements under subpart 1, 2, or 3'' and inserting
``grants or a cooperative agreement under subpart 1''.
(3) National technical assistance.--Section 777 (20 U.S.C.
1140q) is amended--
(A) by redesignating such section as section 742 of
such Act;
(B) in the section heading, by striking ``;
coordinating center'';
(C) in subsection (a)(1), by striking ``appropriated
under section 778'' and inserting ``reserved under
section 736(b)(2)'';
(D) by amending subsection (a)(3)(D) to read as
follows:
``(D) the subject supported by the grants or
cooperative agreement authorized in subpart 1.'';
(E) in subsection (a)(4)(A)(ii), by striking
``subparts 2, 4, and 5'' and inserting ``subparts 2 and
5''; and
(F) in subsection (a)(4)(B), by striking ``grants,
contracts, or cooperative agreements authorized under
subparts 1, 2, and 3'' each place it appears and
inserting ``grants and cooperative agreement authorized
under subpart 1''.
(4) Authorization of appropriations.--Section 778 (20 U.S.C.
1140r) is repealed.
SEC. 704. REPEAL OF COLLEGE ACCESS CHALLENGE GRANT PROGRAM.
Part E of title VII (20 U.S.C. 1141) is repealed.
TITLE VIII--OTHER REPEALS
SEC. 801. REPEAL OF ADDITIONAL PROGRAMS.
(a) Higher Education Act of 1965.--Title VIII of the Higher Education
Act of 1965 (20 U.S.C. 1161a et seq.) is repealed.
(b) Higher Education Opportunity Act.--The Higher Education
Opportunity Act (Public Law 110-315; 122 Stat. 3078 et seq.) is amended
by repealing sections 802 and 803.
(c) Higher Education Amendments of 1998.--The Higher Education
Amendments of 1998 (Public Law 105-244; 112 Stat. 1581 et seq.) is
amended by repealing parts D and H of title VIII.
(d) Higher Education Amendments of 1992.--The Higher Education
Amendments of 1992 (Public Law 102-325; 106 Stat. 448 et seq.) is
amended by repealing part E of title XV.
TITLE IX--AMENDMENTS TO OTHER LAWS
PART A--EDUCATION OF THE DEAF ACT OF 1986
SEC. 901. EDUCATION OF THE DEAF ACT OF 1986.
(a) Board of Trustees.--Section 103(a)(1) of the Education of the
Deaf Act of 1986 (20 U.S.C. 4303(a)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``twenty-one'' and inserting ``twenty-three'';
(2) in subparagraph (A)--
(A) by striking ``three public'' and inserting ``four
public'';
(B) by striking ``one shall'' and all that follows
through ``, and'' and inserting ``two shall be United
States Senators, of whom one shall be appointed by the
Majority Leader of the Senate and one shall be
appointed by the Minority Leader of the Senate, and'';
and
(C) by striking ``appointed by the Speaker of the
House of Representatives'' and inserting ``, of whom
one shall be appointed by the Speaker of the House of
Representatives and one shall be appointed by the
Minority Leader of the House of Representatives''; and
(3) in subparagraph (B), by striking ``eighteen'' and
inserting ``nineteen''.
(b) Laurent Clerc National Deaf Education Center.--Section 104(b)(5)
of the Education of the Deaf Act of 1986 (20 U.S.C. 4304(b)(5)) is
amended to read as follows:
``(5) The University, for purposes of the elementary and
secondary education programs carried out by the Clerc Center,
shall--
``(A)(i)(I) provide an assurance to the Secretary
that it has adopted and is implementing challenging
State academic standards that meet the requirements of
section 1111(b)(1) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(b)(1));
``(II) demonstrate to the Secretary that the
University is implementing a set of high-quality
student academic assessments in mathematics, reading or
language arts, and science, and any other subjects
chosen by the University, that meet the requirements of
section 1111(b)(2) of such Act (20 U.S.C. 6311(b)(2));
and
``(III) demonstrate to the Secretary that the
University is implementing an accountability system
consistent with section 1111(c) of such Act (20 U.S.C.
6311(c)); or
``(ii)(I) select the challenging State academic
standards and State academic assessments of a State,
adopted and implemented, as appropriate, pursuant to
paragraphs (1) and (2) of section 1111(b) of such Act
(20 U.S.C. 6311(b)); and
``(II) adopt the accountability system, consistent
with section 1111(c) of such Act (20 U.S.C. 6311(c)),
of such State; and
``(B) publicly report, except in a case in which such
reporting would not yield statistically reliable
information or would reveal personally identifiable
information about an individual student--
``(i) the results of the academic assessments
implemented under subparagraph (A); and
``(ii) the results of the annual evaluation
of the programs at the Clerc Center, as
determined using the accountability system
adopted under subparagraph (A).''.
(c) Repeal of Cultural Experiences Grants Program.--Part C of title I
of the Education of the Deaf Act of 1986 (20 U.S.C. 4341) is repealed.
(d) Repeal of Authorization of Appropriations for Monitoring and
Evaluation.--Subsection (c) of section 205 of the Education of the Deaf
Act of 1986 (20 U.S.C. 4355(c)) is repealed.
(e) Federal Endowment Funds.--Section 207 of the Education of the
Deaf Act of 1986 (20 U.S.C. 4357) is amended--
(1) in the heading of subsection (b), by striking ``Federal
Payments'' and inserting ``Payments'';
(2) in subsection (b), by striking paragraphs (1) and (2) and
inserting the following:
``(1) From amounts provided by the Secretary from funds
appropriated under subsections (a) and (b) of section 212,
respectively, the University and NTID may make payments, in
accordance with this section, to the Federal endowment fund of
the institution involved.
``(2) Subject to paragraph (3), in any fiscal year, the total
amount of payments made under paragraph (1) to the Federal
endowment fund may not exceed the total amount contributed to
the fund from non-Federal sources during such fiscal year.
``(3) For purposes of paragraph (2), the transfer of funds by
an institution involved to the Federal endowment fund from
another endowment fund of such institution shall not be
considered a contribution from a non-Federal source.'';
(3) in subsection (e), by striking ``Federal payment'' and
inserting ``payment under subsection (b)'';
(4) in subsection (f), in the matter preceding paragraph (1),
by striking ``Federal payments'' and inserting ``payments'';
(5) in subsection (g)(1), by striking ``Federal payments to
such fund'' and inserting ``payments made under subsection
(b)'';
(6) by repealing subsection (h); and
(7) by redesignating subsection (i) as subsection (h).
(f) Repeal of National Study.--Section 211 of the Education of the
Deaf Act of 1986 (20 U.S.C. 4360) is repealed.
(g) Authorization of Appropriations.--Section 212 of the Education of
the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--
(1) in subsection (a), by striking ``such sums as may be
necessary for each of the fiscal years 2009 through 2014'' and
inserting ``$121,275,000 for each of the fiscal years 2019
through 2024''; and
(2) in subsection (b), by striking ``such sums as may be
necessary for each of the fiscal years 2009 through 2014'' and
inserting ``$70,016,000 for each of the fiscal years 2019
through 2024''.
(h) Technical Amendments.--The Education of the Deaf Act of 1986 is
further amended--
(1) in section 112(b)(3) (20 U.S.C. 4332(b)(3)), by striking
``Education and Labor'' and inserting ``Education and the
Workforce'';
(2) in section 203 (20 U.S.C. 4353)--
(A) in the heading of subsection (a), by striking
``General Accounting'' and inserting ``Government
Accountability'';
(B) in subsection (a), by striking ``General
Accounting'' and inserting ``Government
Accountability'';
(C) in subsection (b)(3), by striking ``Education and
Labor'' and inserting ``Education and the Workforce'';
and
(D) in subsection (c)(2)(A), by striking ``Education
and Labor'' and inserting ``Education and the
Workforce'';
(3) in section 204 (20 U.S.C. 4354), by striking ``Education
and Labor'' and inserting ``Education and the Workforce'';
(4) in section 208(a) (20 U.S.C. 4359(a)), by striking
``Education and Labor'' and inserting ``Education and the
Workforce''; and
(5) in section 210(b) (20 U.S.C. 4359b(b)), by striking
``Education and Labor'' and inserting ``Education and the
Workforce''.
PART B--TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT OF
1978; DINE' COLLEGE ACT
SEC. 911. TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT
OF 1978.
(a) Definitions.--Section 2 of the Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1801) is amended--
(1) in subsection (a)--
(A) in paragraph (7), by adding ``and'' at the end;
(B) in paragraph (8), by striking ``; and'' and
inserting a period; and
(C) by striking paragraph (9); and
(2) in subsection (b)--
(A) by amending paragraph (1) to read as follows:
``(1) Such number shall be calculated based on the number of
Indian students who are enrolled--
``(A) at the conclusion of the third week of each
academic term; or
``(B) on the fifth day of a shortened program
beginning after the conclusion of the third full week
of an academic term.'';
(B) in paragraph (3), by striking ``for purposes of
obtaining'' and inserting ``solely for the purpose of
obtaining''; and
(C) by inserting after paragraph (5), the following:
``(6) Enrollment data from the prior-prior academic year
shall be used.''.
(b) Authorization of Appropriations.--The Tribally Controlled
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801 et
seq.) is amended by inserting after section 2 (25 U.S.C. 1801), the
following:
``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
``(a) Titles I and IV.--There are authorized to be appropriated
$57,412,000 for each of fiscal years 2019 through 2024 to carry out
titles I and IV.
``(b) Title V.--There are authorized to be appropriated $7,414,000
for each of fiscal years 2019 through 2024 to carry out title V.''.''.
(c) Repeal of Planning Grants.--Section 104 of the Tribally
Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C.
1804a) is repealed.
(d) Grants to Tribally Controlled Colleges and Universities.--Section
107 of the Tribally Controlled Colleges and Universities Assistance Act
of 1978 (25 U.S.C. 1807) is amended--
(1) by striking subsection (c); and
(2) by redesignating subsection (d) as subsection (c).
(e) Amount of Grants.--Section 108(b)(1) of the Tribally Controlled
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1808(b)(1))
is amended--
(1) by striking ``of the funds available for allotment by
October 15 or no later than 14 days after appropriations become
available'' and inserting `` of the amounts appropriated for
any fiscal year on or before July 1 of that fiscal year''; and
(2) by striking ``January 1'' and inserting ``September 30'';
(f) Authorization of Appropriations.--Section 110(a) of the Tribally
Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C.
1810(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``$3,200,000 for fiscal year 2009
and'';
(B) by striking ``for each of the five succeeding
fiscal years''; and
(C) by inserting ``from the amount made available
under section 3(a) for each fiscal year'' after
``necessary'';
(2) in paragraph (2), by striking ``for fiscal year 2009''
and all that follows through the period at the end and
inserting ``from the amount made available under section 3(a)
for each fiscal year.'';
(3) in paragraph (3), by striking ``for fiscal year 2009''
and all that follows through the period at the end and
inserting ``from the amount made available under section 3(a)
for each fiscal year.''; and
(4) in paragraph (4), by striking ``2009'' and inserting
``2019''.
(g) Rules and Regulations.--The Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended
by striking section 115 (25 U.S.C. 1815).
(h) Repeal of Endowment Program.--
(1) Repeal.--Title III of the Tribally Controlled Colleges
and Universities Assistance Act of 1978 (25 U.S.C. 1831 et
seq.) is repealed.
(2) Transition.--
(A) In general.--Subject to subparagraph (B), title
III of the Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1831 et
seq.), as such title was in effect on the day before
the date of the enactment of this Act, shall apply with
respect to any endowment fund established or funded
under such title before such date of enactment, except
that the Secretary of the Interior may not make any
grants or Federal capital contributions under such
title after such date.
(B) Termination.--Subparagraph (A) shall terminate on
the date that is 20 years after the date of the
enactment of this Act. On or after such date, a
tribally controlled college or university may use the
corpus (including the Federal and institutional capital
contribution) of any endowment fund described in such
subparagraph to pay any expenses relating to the
operation or academic programs of such college or
university.
(i) Tribal Economic Development; Authorization of Appropriations.--
Section 403 of the Tribally Controlled Colleges and Universities
Assistance Act of 1978 (25 U.S.C. 1852) is amended by striking ``for
fiscal year 2009'' and all that follows through the period at the end
and inserting ``from the amount made available under section 3(a) for
each fiscal year.''.
(j) Tribally Controlled Postsecondary Career and Technical
Institutions.--Section 504 of the Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1864) is amended by
striking ``for fiscal year 2009'' and all that follows through the
period at the end and inserting ``from the amount made available under
section 3(b) for each fiscal year.''
(k) Clerical Amendments.--The Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.), as
amended by subsections (a) through (j), is further amended--
(1) by striking ``Bureau of Indian Affairs'' each place it
appears and inserting ``Bureau of Indian Education'';
(2) by striking ``Navajo Community College Act'' each place
it appears and inserting ``Dine' College Act'';
(3) by striking ``colleges or universities'' each place it
appears, including in headings, and inserting ``colleges and
universities''; and
(4) in section 109 (25 U.S.C. 1809), by redesignating the
second subsection (c) as subsection (d).
SEC. 912. DINE' COLLEGE ACT.
(a) Short Title.--The first section of Public Law 92-189 is amended
by striking ``this Act may be cited as the `Navajo Community College
Act''' and inserting ``this Act may be cited as the `Dine' College
Act'''.
(b) References.--Any reference to the Navajo Community College Act in
any law (other than this Act), regulation, map, document, record, or
other paper of the United States shall be deemed to be a reference to
the Dine' College Act.
(c) Authorization of Appropriations.--Section 5 of Public Law 92-189
is amended--
(1) in subsection (a)(1), by striking ``for fiscal years 2009
through 2014'' and inserting ``from the amount made available
under subsection (b)(1) for each fiscal year''; and
(2) in subsection (b)(1), by striking ``such sums as are
necessary for fiscal years 2009 through 2014'' and inserting
``$13,600,000 for each of fiscal years 2019 through 2024''.
PART C--GENERAL EDUCATION PROVISIONS ACT
SEC. 921. RELEASE OF EDUCATION RECORDS TO FACILITATE THE AWARD OF A
RECOGNIZED POSTSECONDARY CREDENTIAL.
Section 444(b) of the General Education Provisions Act (20 U.S.C.
1232g(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (K)(ii), by striking ``; and''
and inserting a semicolon; and
(B) in subparagraph (L), by striking the period at
the end and inserting ``; and''; and
(2) by inserting after subparagraph (L) the following:
``(M) an institution of postsecondary education in which the
student was previously enrolled, to which records of
postsecondary coursework and credits are sent for the purpose
of applying such coursework and credits toward completion of a
recognized postsecondary credential (as that term is defined in
section 3 of the Workforce Innovation and Opportunity Act (29
U.S.C. 3102)), upon condition that the student provides written
consent prior to receiving such credential.''.
Purpose
H.R. 4508, the Promoting Real Opportunity, Success, and
Prosperity through Education Reform Act (PROSPER Act), amends
the Higher Education Act of 1965 to support students in
completing an affordable postsecondary education that will
prepare them to enter the workforce with the skills they need
for lifelong success. The PROSPER Act will reform the
postsecondary education system by promoting innovation, access,
and completion; simplifying and improving student aid;
empowering students and families to make informed decisions;
and ensuring strong accountability and a limited federal role.
Committee Action
112TH CONGRESS
First Session--Hearings
On March 1, 2011, the Committee on Education and the
Workforce (Committee) held a hearing in Washington, D.C., on
``Education Regulations: Weighing the Burden on Schools and
Students.'' The hearing was the first in a series examining the
burden of federal, state, and local regulations on the nation's
education system. The purpose of the hearing was to uncover the
damaging effects of federal regulations on schools and
institutions. These rules increasingly stifle growth and
innovation, raise operating costs, and limit student access to
affordable colleges and universities throughout the nation.
Testifying before the Committee were Dr. Edgar Hatrick,
Superintendent, Loudon County Public Schools, Ashburn,
Virginia; Ms. Kati Haycock, President, The Education Trust,
Washington, D.C.; Mr. Gene Wilhoit, Executive Director, Council
of Chief State School Officers, Washington, D.C.; and Mr.
Christopher B. Nelson, President, St. John's College,
Annapolis, Maryland.
On March 11, 2011, the Committee's Subcommittee on Higher
Education and Workforce Training (HEWT) held a hearing in
Washington, D.C., on ``Education Regulations: Federal Overreach
into Academic Affairs.'' The purpose of the hearing was to
discuss the most egregious and intrusive provisions in the
program integrity regulations issued by the U.S. Department of
Education (the Department) and to uncover the unintended
consequences of the regulations to states and institutions of
higher education. The state authorization and credit hour
regulations were specifically discussed. Testifying before the
Subcommittee were Mr. John Ebersole, President, Excelsior
College, Albany, New York; Dr. G. Blair Dowden, President,
Huntington University, Huntington, Indiana; the Honorable
Kathleen Tighe, Inspector General, U.S. Department of
Education, Washington, D.C.; and Mr. Ralph Wolff, President,
Western Association of Schools and Colleges, Alameda,
California.
On March 17, 2011, the Committee held a hearing in
Washington, D.C., on ``Education Regulations: Roadblocks to
Student Choice in Higher Education.'' The purpose of the
hearing was to explore the harmful consequences of the gainful
employment regulation issued by the Department. Testifying
before the Committee were Ms. Catherine Barreto, graduate,
Monroe College, and Senior Sales Associate, Doubletree Hotels,
Brooklyn, New York; Mr. Travis Jennings, Electrical Supervisor
of the Manufacturing Launch Systems Group, Orbital Sciences
Corporation, Chandler, Arizona; Dr. Arnold Mitchem, President,
Council for Opportunity in Education, Washington, D.C.; and Ms.
Jeanne Herrmann, Chief Operating Officer, Globe University/
Minnesota School of Business, Woodbury, Minnesota.
On March 21, 2011, the Committee held a field hearing in
Wilkes-Barre, Pennsylvania, on ``Reviving our Economy: The Role
of Higher Education in Job Growth and Development.'' The
purpose of the hearing was to highlight work by local colleges
and universities to respond to local and state economic needs.
Testifying before the Committee were Mr. James Perry,
President, Hazelton City Council, Hazelton, Pennsylvania; Mr.
Jeffrey Alesson, Vice President of Strategic Planning and
Quality Assurance, Diamond Manufacturing, Exeter, Pennsylvania;
Dr. Reynold Verret, Provost, Wilkes University, Wilkes-Barre,
Pennsylvania; Mr. Raymond Angeli, President, Lackawanna
College, Scranton, Pennsylvania; Ms. Joan Seaman, Executive
Director, Empire Beauty School, Moosic, Pennsylvania; and Mr.
Thomas P. Leary, President, Luzerne County Community College,
Nanticoke, Pennsylvania.
On March 22, 2011, the Committee held a field hearing in
Utica, New York, on ``Reviving our Economy: The Role of Higher
Education in Job Growth and Development.'' The purpose of the
hearing was to highlight work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Mr. Anthony J. Picente,
Jr., County Executive, Oneida County, Utica, New York; Mr. Dave
Mathis, Director, Oneida County Workforce Development, Utica,
New York; Dr. John Bay, Vice President and Chief Scientist,
Assured Information Security, Inc., Rome, New York; Dr. Bjong
Wolf Yeigh, President, State University of New York Institute
of Technology, Utica, New York; Dr. Ann Marie Murray,
President, Herkimer County Community College, Herkimer, New
York; Dr. Judith Kirkpatrick, Provost, Utica College, Utica,
New York; and Mr. Phil Williams, President, Utica School of
Commerce, The Business College, Utica, New York.
On April 21, 2011, the Committee held a field hearing in
Columbia, Tennessee, on ``Reviving our Economy: The Role of
Higher Education in Job Growth and Development.'' The purpose
of the hearing was to highlight the work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Dr. Janet Smith,
President, Columbia State Community College, Columbia,
Tennessee; Dr. Ted Brown, President, Martin-Methodist College,
Pulaski, Tennessee; Mr. Jim Coakley, President, Nashville Auto-
Diesel College, Nashville, Tennessee; the Honorable Dean
Dickey, Mayor, City of Columbia, Columbia, Tennessee; Ms. Susan
Marlow, President and Chief Executive Officer, Smart Data
Strategies, Franklin, Tennessee; Ms. Jan McKeel, Executive
Director, South Central Tennessee Workforce Board, Columbia,
Tennessee; and Ms. Margaret Prater, Executive Director,
Northwest Tennessee Workforce Board, Dyersburg, Tennessee.
On July 8, 2011, the HEWT Subcommittee, together with the
Committee on Oversight and Government Reform Subcommittee on
Regulatory Affairs, Stimulus Oversight, and Government
Spending, held a hearing in Washington, D.C., on ``The Gainful
Employment Regulation: Limiting Job Growth and Student
Choice.'' The purpose of the hearing was to explore the harmful
consequences of the gainful employment regulation issued by the
Department. Testifying before the Subcommittees were Dr. Dario
A. Cortes, President, Berkeley College, New York City, New
York; Dr. Anthony P. Carnevale, Director, Georgetown University
Center on Education and the Workforce, Washington, D.C.; Ms.
Karla Carpenter, graduate, Herzing University and Program
Manager, Quest Software, Madison, Wisconsin; and Mr. Harry C.
Alford, President and Chief Executive Officer, National Black
Chamber of Commerce, Washington, D.C.
On August 16, 2011, the HEWT Subcommittee held a field
hearing in Greenville, South Carolina, on ``Reviving Our
Economy: The Role of Higher Education in Job Growth and
Development.'' The purpose of the hearing was to highlight the
work by local colleges and universities to respond to local and
state economic needs. Testifying before the Subcommittee were
the Honorable Knox White, Mayor, City of Greenville,
Greenville, South Carolina; Mr. Werner Eikenbusch, Section
Manager, Associate Development and Training, BMW Manufacturing
Co., Spartanburg, South Carolina; Ms. Laura Harmon, Project
Director, Greenville Works, Greenville, South Carolina; Dr.
Brenda Thames, Vice President of Academic Development,
Greenville Health System, Greenville, South Carolina; Mr. James
F. Barker, President, Clemson University, Clemson, South
Carolina; Dr. Thomas F. Moore, Chancellor, University of South
Carolina Upstate, Spartanburg, South Carolina; Dr. Keith
Miller, President, Greenville Technical College, Greenville,
South Carolina; and Ms. Amy Hickman, Campus President, ECPI
College of Technology, Greenville, South Carolina.
On October 25, 2011, the HEWT Subcommittee held a hearing
in Washington, D.C., on ``Government-Run Student Loans:
Ensuring the Direct Loan Program is Accountable to Students and
Taxpayers.'' The purpose of the hearing was to examine the
switch to and implementation of the Direct Loan program.
Testifying before the Subcommittee were Mr. James W. Runcie,
Chief Operating Officer, Office of Federal Student Aid, U.S.
Department of Education, Washington, D.C.; Mr. Ron H. Day,
Director of Financial Aid, Kennesaw State University, Kennesaw,
Georgia; Ms. Nancy Hoover, Director of Financial Aid, Denison
University, Granville, Ohio; and Mr. Mark. A. Bandre, Vice
President for Enrollment Management and Student Affairs, Baker
University, Baldwin City, Kansas.
On November 30, 2011, the HEWT Subcommittee held a hearing
in Washington, D.C., on ``Keeping College Within Reach:
Discussing Ways Institutions Can Streamline Costs and Reduce
Tuition.'' The purpose of the hearing was to highlight
innovative practices institutions of higher education were
implementing to reduce their costs and to limit tuition
increases for students. Testifying before the Subcommittee were
Ms. Jane V. Wellman, Executive Director, Delta Project on
Postsecondary Costs, Productivity, and Accountability,
Washington, D.C.; Dr. Ronald E. Manahan, President, Grace
College and Seminary, Winona Lake, Indiana; Mr. Jamie P.
Merisotis, President and Chief Executive Officer, Lumina
Foundation for Education, Indianapolis, Indiana; and Mr. Tim
Foster, President, Colorado Mesa University, Grand Junction,
Colorado.
Second Session--Hearings
On July 18, 2012, the HEWT Subcommittee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: Exploring
State Efforts to Curb Costs.'' The purpose of the hearing was
to highlight innovative practices at the state level to assist
postsecondary institutions in keeping costs affordable and to
promote accountability of public funds. Testifying before the
Subcommittee were Mr. Scott Pattison, Executive Director,
National Association of State Budget Officers, Washington,
D.C.; Ms. Teresa Lubbers, Commissioner for Higher Education,
State of Indiana, Indianapolis, Indiana; Mr. Stan Jones,
President, Complete College America, Zionsville, Indiana; and
Dr. Joe May, President, Louisiana Community and Technical
College System, Baton Rouge, Louisiana.
On September 20, 2012, the Committee's HEWT Subcommittee
held a hearing in Washington, D.C., on ``Assessing College
Data: Helping to Provide Valuable Information to Students,
Institutions, and Taxpayers.'' The purpose of the hearing was
to examine data collected by the federal government from
institutions of higher education, including data requirements
established during the last reauthorization of the Higher
Education Act (HEA) in 2008, (Higher Education Opportunity
Act). Testifying before the Subcommittee were Dr. Mark
Schneider, Vice President, American Institutes for Research,
Washington, D.C.; Dr. James Hallmark, Vice Chancellor for
Academic Affairs, Texas A&M System, College Station, Texas; Dr.
Jose Cruz, Vice President for Higher Education Policy and
Practice, The Education Trust, Washington, D.C.; and Dr. Tracy
Fitzsimmons, President, Shenandoah University, Winchester,
Virginia.
Legislative action
On February 17, 2011, the House of Representatives
considered an amendment offered by then-Chairman John Kline (R-
MN); then-HEWT Subcommittee Chairwoman Virginia Foxx (R-NC);
and Rep. Alcee Hastings (D-FL) to H.R. 1, the Disaster Relief
Appropriations Act of 2013. The amendment prohibited the use of
funds by the Department to implement and enforce the gainful
employment regulation. The amendment was agreed to by a
bipartisan vote of 289 to 136. On February 19, 2011, the House
of Representatives passed H.R. 1 by a vote of 235 to 189. This
bill was not signed into law.
On June 3, 2011, then-HEWT Subcommittee Chairwoman Foxx and
then-Chairman Kline introduced H.R. 2117, the Protecting
Academic Freedom in Higher Education Act. On July 22, 2011, the
Committee considered H.R. 2117 in legislative session and
reported it favorably, as amended, to the House of
Representatives by a bipartisan vote of 27 to 11. On February
28, 2012, the House of Representatives passed H.R. 2117 by a
bipartisan vote of 303 to 114. The bill was sent to the Senate
and referred to the Senate Committee on Health, Education,
Labor, and Pensions where no further action was taken. The
concept of this bill is included in H.R. 4508.
113TH CONGRESS
First Session--Hearings
On March 13, 2013, the Committee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: Examining
Opportunities to Strengthen Federal Student Loan Programs.''
The purpose of the hearing was to examine ways to strengthen
federal student loans, as well as how moving to a market-based
or variable interest rate on all federal student loans could
benefit both students and taxpayers. Testifying before the
Committee were Dr. Deborah J. Lucas, Sloan Distinguished
Professor of Finance, Massachusetts Institute of Technology,
Cambridge, Massachusetts; Mr. Jason Delisle, Director, Federal
Education Budget Project, The New America Foundation,
Washington, D.C.; Mr. Justin Draeger, President and Chief
Executive Officer, National Association of Student Financial
Aid Administrators, Washington, D.C.; and Dr. Charmaine Mercer,
Vice President of Policy, Alliance for Excellent Education,
Washington, D.C.
On April 9, 2013, the HEWT Subcommittee held a field
hearing in Monroe, Michigan, on ``Reviving Our Economy: The
Role of Higher Education in Job Growth and Development.'' The
purpose of the hearing was to highlight work being done by
local colleges and universities to respond to local and state
economic needs. Testifying before the Subcommittee were Mr.
Henry Lievens, Commissioner, Monroe County, Monroe, Michigan;
Ms. Lynette Dowler, Plant Director, Fossil Generation, DTE
Energy, Detroit, Michigan; Ms. Susan Smith, Executive Director,
Economic Development Partnership of Hillsdale County,
Jonesville, Michigan; Mr. Dan Fairbanks, United Auto Workers
International Representative, UAW-GM Skill Development and
Training Department, Detroit, Michigan; Dr. David E. Nixon,
President, Monroe County Community College, Monroe, Michigan;
Sister Peg Albert, OP, Ph.D., President, Siena Heights
University, Adrian, Michigan; Dr. Michelle Shields, Career
Coach and Workforce Development Director, Jackson Community
College, Jackson, Michigan; and Mr. Douglas A. Levy, Director
of Financial Aid, Macomb Community College, Warren, Michigan.
On April 16, 2013, the HEWT Subcommittee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: The Role
of Federal Student Aid Programs.'' The purpose of the hearing
was to examine shifting the focus of federal student aid
programs from enhancing access to improving student outcomes.
Testifying before the Subcommittee were Mr. Terry W. Hartle,
Senior Vice President, Division of Government and Public
Affairs, American Council on Education, Washington, D.C.; Ms.
Moriah Miles, State Chair, Minnesota State University Student
Association, Mankato, Minnesota; Ms. Patricia McGuire,
President, Trinity Washington University, Washington, D.C.; and
Mr. Dan Madzelan, former employee (Retired), U.S. Department of
Education, University Park, Maryland.
On April 24, 2013, the HEWT Subcommittee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: Enhancing
Transparency for Students, Families, and Taxpayers.'' The
purpose of the hearing was to examine ways to improve the
information provided by the federal government to inform
students and families about their postsecondary education
options. Testifying before the Subcommittee were Dr. Donald E.
Heller, Dean, College of Education, Michigan State University,
East Lansing, Michigan; Mr. Alex Garrido, Student, Keiser
University, Miami, Florida; Dr. Nicole Farmer Hurd, Founder and
Executive Director, National College Advising Corps, Carrboro,
North Carolina; and Mr. Travis Reindl, Program Director,
Postsecondary Education, National Governors Association Center
for Best Practices, Washington, D.C.
On June 13, 2013, the HEWT Subcommittee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: Discussing
Program Quality through Accreditation.'' The purpose of the
hearing was to examine the historical role of accreditation,
discuss the role of regional and national accreditors in
measuring institutional quality, and consider possible areas
for reform. Testifying before the Subcommittee were Dr.
Elizabeth H. Sibolski, President, Middle States Commission on
Higher Education, Philadelphia, Pennsylvania; Dr. Michale
McComis, Executive Director, Accrediting Commission of Career
Schools and Colleges, Arlington, Virginia; Ms. Anne D. Neal,
President, American Council of Trustees and Alumni, Washington,
D.C.; and Mr. Kevin Carey, Director of the Education Policy
Program, The New America Foundation, Washington, D.C.
On July 9, 2013, the Committee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: Improving
Higher Education through Innovation.'' The purpose of the
hearing was to highlight innovation in higher education
occurring at the state and institutional level and in the
private sector. Testifying before the Committee were Mr. Scott
Jenkins, Director of External Relations, Western Governors
University, Salt Lake City, Utah; Dr. Pamela J. Tate, President
and Chief Executive Officer, Council for Adult and Experiential
Learning, Chicago, Illinois; Dr. Joann A. Boughman, Senior Vice
Chancellor for Academic Affairs, University System of Maryland,
Adelphi, Maryland; and Mr. Burck Smith, Chief Executive Officer
and Founder, StraighterLine, Baltimore, Maryland.
On September 11, 2013, the HEWT Subcommittee held a hearing
in Washington, D.C., on ``Keeping College Within Reach:
Supporting Higher Education Opportunities for America's
Servicemembers and Veterans.'' The purpose of the hearing was
to examine the efforts of higher education institutions to
improve postsecondary education opportunities for
servicemembers and veterans. Testifying before the Subcommittee
were Mrs. Kimrey W. Rhinehardt, Vice President for Federal and
Military Affairs, The University of North Carolina, Chapel
Hill, North Carolina; Dr. Arthur F. Kirk, Jr., President, Saint
Leo University, Saint Leo, Florida; Dr. Russell S. Kitchner,
Vice President for Regulatory and Governmental Relations,
American Public University System, Charles Town, West Virginia;
and Dr. Ken Sauer, Senior Associate Commissioner for Research
and Academic Affairs, Indiana Commission for Higher Education,
Indianapolis, Indiana.
On September 18, 2013, the HEWT Subcommittee held a hearing
in Washington, D.C., on ``Keeping College Within Reach:
Improving Access and Affordability through Innovative
Partnerships.'' The purpose of the hearing was to examine the
efforts of higher education institutions to expand access and
reduce costs by partnering with local employers, other
colleges, or online course providers. Testifying before the
Subcommittee were Dr. Jeffrey Docking, President, Adrian
College, Adrian, Michigan; Ms. Paula R. Singer, President and
Chief Executive Officer, Laureate Global Products and Services,
Baltimore, Maryland; Dr. Rich Baraniuk, Professor, Rice
University, and Founder, Connexions, Houston, Texas; and Dr.
Charles Lee Isbell, Jr., Professor and Senior Associate Dean,
College of Computing, Georgia Institute of Technology, Atlanta,
Georgia.
On November 13, 2013, the Committee held a hearing in
Washington, D.C., on ``Keeping College Within Reach:
Simplifying Federal Student Aid.'' The purpose of the hearing
was to examine the need to streamline, consolidate, and
simplify federal student aid programs. Testifying before the
Committee were Ms. Kristin D. Conklin, Founding Partner, HCM
Strategies, LLC, Washington, D.C.; Dr. Sandy Baum, Research
Professor of Education Policy, George Washington University
Graduate School of Education and Human Development, and Senior
Fellow, Urban Institute, Washington, D.C.; Ms. Jennifer
Mishory, J.D., Deputy Director, Young Invincibles, Washington,
D.C.; and Mr. Jason Delisle, Director, Federal Education Budget
Project, New America Foundation, Washington, D.C.
On December 3, 2013, the HEWT Subcommittee held a hearing
in Washington, D.C., on ``Keeping College Within Reach:
Strengthening Pell Grants for Future Generations.'' The purpose
of the hearing was to examine Pell Grant program reform
proposals to better target funds to the neediest students and
put the program on a fiscally responsible and sustainable path.
Testifying before the Subcommittee were Mr. Justin Draeger,
President and Chief Executive Officer, National Association of
Student Financial Aid Administrators, Washington, D.C.; Dr.
Jenna Ashley Robinson, Director of Outreach, John W. Pope
Center for Higher Education Policy, Raleigh, North Carolina;
Mr. Michael Dannenberg, Director of Higher Education and
Education Finance Policy, The Education Trust, Washington,
D.C.; and Mr. Richard C. Heath, Director of Student Financial
Services, Anne Arundel Community College, Arnold, Maryland.
Second Session--Hearings
On January 28, 2014, the HEWT Subcommittee held a hearing
in Washington, D.C., on ``Keeping College Within Reach: Sharing
Best Practices for Serving Low-Income and First Generation
Students.'' The purpose of the hearing was to highlight best
practices at institutions of higher education for serving low-
income and first generation students. Testifying before the
Subcommittee were Dr. James Anderson, Chancellor, Fayetteville
State University, Fayetteville, North Carolina; Mrs. Mary Beth
Del Balzo, Senior Executive Vice President and Chief Executive
Officer, The College of Westchester, White Plains, New York;
Mr. Josse Alex Garrido, graduate student, University of Texas--
Pan American, Edinburg, Texas; and Rev. Dennis H.
Holtschneider, President, DePaul University, Chicago, Illinois.
On February 27, 2014, the Subcommittee on Early Childhood,
Elementary, and Secondary Education and the HEWT Subcommittee
held a joint hearing in Washington, D.C., on ``Exploring
Efforts to Strengthen the Teaching Profession.'' The purpose of
the hearing was to discuss the state of teacher preparation
nationwide. Testifying before the Subcommittees were Dr.
Deborah A. Gist, Commissioner, Rhode Island Department of
Elementary and Secondary Education, Providence, Rhode Island;
Dr. Marcy Singer-Gabella, Professor of the Practice of
Education, Vanderbilt University, Nashville, Tennessee; Dr.
Heather Peske, Associate Commissioner for Educator Quality,
Massachusetts Department of Elementary and Secondary Education,
Malden, Massachusetts; and Ms. Christina Hall, Co-Founder and
Co-Director, Urban Teacher Center, Baltimore, Maryland.
On March 12, 2014, the HEWT Subcommittee held a hearing in
Washington, D.C., on ``Examining the Mismanagement of the
Student Loan Rehabilitation Process.'' The purpose of the
hearing was to examine the Department's ability to oversee the
processing of rehabilitated loans issued in the Direct Loan
program. Testifying before the Subcommittee were Ms. Melissa
Emrey-Arras, Director of Education, Workforce, and Income
Security Issues, U.S. Government Accountability Office, Boston,
Massachusetts; the Honorable Kathleen Tighe, Inspector General,
U.S. Department of Education, Washington, D.C.; Mr. James
Runcie, Chief Operating Officer, Office of Federal Student Aid,
U.S. Department of Education, Washington, D.C.; and Ms. Peg
Julius, Executive Director of Enrollment Management, Kirkwood
Community College, Cedar Rapids, Iowa.
On March 20, 2014, the Committee held a field hearing in
Mesa, Arizona, on ``Reviving our Economy: Supporting a 21st
Century Workforce.'' The purpose of the hearing was to explore
the role of higher education institutions in fostering job
creation and growth through innovative partnerships with the
business community and new modes of teaching delivery.
Testifying before the Committee were the Honorable Rick
Heumann, Vice Mayor, City of Chandler, Chandler, Arizona; Ms.
Cathleen Barton, Education Manager, Intel Corporate Affairs,
Southwestern United States, Intel Corporation, Chandler,
Arizona; Mr. Lee D. Lambert, J.D., Chancellor, Pima Community
College, Tucson, Arizona; Dr. William Pepicello, President,
University of Phoenix, Tempe, Arizona; Dr. Michael Crow,
President, Arizona State University, Tempe, Arizona; Dr. Ann
Weaver Hart, President, The University of Arizona, Tucson,
Arizona; Dr. Ernest A. Lara, President, Estrella Mountain
Community College, Avondale, Arizona; and Ms. Christy Farley,
Vice President of Government Affairs and Business Partnerships,
Northern Arizona University, Phoenix, Arizona.
On April 2, 2014, the Committee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: Meeting
the Needs of Contemporary Students.'' The purpose of the
hearing was to examine how institutions, states, and other
entities assist contemporary college students in accessing and
completing postsecondary education. Testifying before the
Committee were Dr. George A. Pruitt, President, Thomas Edison
State College, Trenton, New Jersey; Dr. Kevin Gilligan,
Chairman and Chief Executive Officer, Capella Education
Company, Minneapolis, Minnesota; Mr. David Moldoff, Chief
Executive Officer and Founder, AcademyOne, Inc., West Chester,
Pennsylvania; Dr. Joann A. Boughman, Senior Vice Chancellor for
Academic Affairs, University System of Maryland, Adelphi,
Maryland; Mr. Stan Jones, President, Complete College America,
Indianapolis, Indiana; and Dr. Brooks A. Keel, President,
Georgia Southern University, Statesboro, Georgia.
Legislative action
On May 9, 2013, then-Chairman Kline and then-HEWT
Subcommittee Chairwoman Foxx introduced H.R. 1911, the Smarter
Solutions for Students Act. The bill moved all federal student
loans (except Perkins loans) to a market-based interest rate.
On May 16, 2013, the Committee considered H.R. 1911 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 24 to 13.
On May 23, 2013, the House of Representatives passed H.R. 1911
by a bipartisan vote of 221 to 198. On July 24, 2013, the
Senate passed a substitute version of H.R. 1911, the Bipartisan
Student Loan Certainty Act, by a bipartisan vote of 81 to 18.
The legislation allowed student loan interest rates to flow
with the market by resetting them once a year based on a
formula in the statute, but the rate would become fixed once
the loan disbursed to the student. On July 31, 2013, the House
of Representatives agreed to suspend the rules and agree to the
Senate amendment to H.R. 1911 by a bipartisan vote of 392 to
31. On August 9, 2013, the President signed H.R. 1911 into law
(P.L. 113-28).
On July 10, 2013, then-Chairman Kline, then-HEWT
Subcommittee Chairwoman Foxx, and Rep. Hastings introduced H.R.
2637, the Supporting Academic Freedom through Regulatory Relief
Act. The bill, which included the text of the Protecting
Academic Freedom in Higher Education Act (H.R. 2117) and the
Kline/Foxx/Hastings amendment to H.R. 1 from the 112th
Congress, repealed the credit hour, state authorization, and
gainful employment regulations, and it amended the statute to
clarify the incentive compensation regulation. Additionally,
the bill prohibited the Department from issuing related
regulations until after Congress reauthorizes the HEA. On July
24, 2013, the Committee considered H.R. 2637 in legislative
session and reported it favorably, as amended, to the House of
Representatives by a bipartisan vote of 22 to 13. This policy
is included in H.R. 4508.
On June 26, 2014, then-HEWT Subcommittee Chairwoman Foxx
and Rep. Luke Messer (R-IN) introduced H.R. 4983, the
Strengthening Transparency in Higher Education Act. The bill
simplified and streamlined the information made publicly
available by the Secretary of Education (the Secretary)
regarding institutions of higher education. On July 10, 2014,
the Committee considered H.R. 4983 in legislative session and
reported it favorably, as amended, to the House of
Representatives by a voice vote. On July 23, 2014, the House of
Representatives considered H.R. 4983 under suspension of the
rules. The bill was agreed to by voice vote, sent to the
Senate, and referred to the Senate Committee on Health,
Education, Labor, and Pensions where no further action was
taken. This policy is included in H.R. 4508.
On June 26, 2014, Rep. Brett Guthrie (R-KY) and Rep.
Richard Hudson (R-NC) introduced H.R. 4984, the Empowering
Students through Enhanced Financial Counseling Act. The bill
amended the loan counseling requirements under the HEA and
required counseling for Federal Pell Grant recipients. On July
10, 2014, the Committee considered H.R. 4984 in legislative
session and reported it favorably, as amended, to the House of
Representatives by voice vote. On July 24, 2014, the House of
Representatives considered H.R. 4984 and passed it, as amended,
by a bipartisan vote of 405 to 11. The bill was sent to the
Senate and referred to the Senate Committee on Health,
Education, Labor, and Pensions where no further action was
taken. This policy is included in H.R. 4508.
114TH CONGRESS
First Session--Hearings
On February 4, 2015, the Committee held a hearing in
Washington, D.C., on ``Expanding Opportunity in America's
Schools and Workplaces.'' The purpose of the hearing was to
learn about efforts made by state leaders to improve K-12 and
postsecondary education, to ensure students who graduate are
prepared to pursue a postsecondary education and compete in the
workforce, and to promote efforts to spur job creation.
Testifying before the Committee were Dr. Michael Amiridis,
Provost and Executive Vice President for Academic Affairs,
University of South Carolina, Columbia, South Carolina; Mr.
Drew Greenblatt, President and CEO, Marlin Steel Wire Products,
Baltimore, Maryland; Dr. Lawrence Mishel, President, Economic
Policy Institute, Washington, D.C.; and the Honorable Mike
Pence, Governor, State of Indiana, Indianapolis, Indiana.
On March 17, 2015, the Committee's HEWT Subcommittee held a
hearing in Washington, D.C., on ``Strengthening America's
Higher Education System.'' The purpose of the hearing was to
explore policy proposals that align with the Committee's four
pillars for reauthorization of the HEA: (1) promoting
innovation, access, and completion; (2) simplifying and
improving student aid; (3) empowering students and families to
make informed decisions; and (4) ensuring strong accountability
and a limited federal role. Testifying before the Subcommittee
were Mr. Willis Goldsmith, Partner, Jones Day, New York, New
York, testifying on behalf of the U.S. Chamber of Commerce; Mr.
Stan Soloway, President and CEO, Professional Services Council,
Arlington, Virginia; Ms. Angela Styles, Partner, Crowell &
Moring LLP, Washington, D.C.; and Ms. Karla Walter, Associate
Director, American Worker Project, Center for American
Progress, Washington, D.C.
On April 30, 2015, the HEWT Subcommittee held a hearing in
Washington, D.C., on ``Improving College Access and Completion
for Low-Income and First-Generation Students.'' The purpose of
the hearing was to explore policy proposals and best practices
to strengthen programs helping disadvantaged students access
and complete higher education. Testifying before the
Subcommittee were Dr. Laura Perna, James S. Riepe Professor,
Executive Director, Alliance for Higher Education and
Democracy, University of Pennsylvania, Philadelphia,
Pennsylvania; Dr. Charles J. Alexander, Associate Vice Provost
for Student Diversity, Director, Academic Advancement Program,
Associate Adjunct Professor, University of California, Los
Angeles, California; Dr. Michelle Asha Cooper, President,
Institute for Higher Education Policy, Washington, D.C.; and
Dr. Joe D. May, Chancellor, Dallas County Community College
District, Dallas, Texas.
On September 10, 2015, the Committee's HEWT Subcommittee
held a hearing in Washington, D.C., on ``Preventing and
Responding to Sexual Assault on College Campuses.'' The purpose
of the hearing was to explore policy proposals and best
practices to help institutions address and respond to campus
sexual assault and violence. Testifying before the Subcommittee
were Ms. Dana Scaduto, General Counsel, Dickinson College,
Carlisle, Pennsylvania; Dr. Penny Rue, Vice President for
Campus Life, Wake Forest University, Winston-Salem, North
Carolina; Ms. Lisa M. Maatz, M.A., Vice President for
Government Relations, American Association of University Women,
Washington, D.C.; and Mr. Joseph Cohn, Legislative and Policy
Director, Foundation for Individual Rights in Education,
Philadelphia, Pennsylvania.
On November 18, 2015, the Committee's HEWT Subcommittee and
the Committee on Oversight and Government Reform Subcommittee
on Government Operations held a hearing in Washington, D.C., on
``Federal Student Aid: Performance-Based Organization Review.''
The purpose of the hearing was to review the Office of Federal
Student Aid's responsibilities as a Performance-Based
Organization (PBO), evaluate the PBO's performance, and
identify possible areas of reform. Testifying before the
Subcommittees were Mr. James Runcie, Chief Operating Officer,
U.S. Department of Education, Washington, D.C.; Ms. Melissa
Emrey-Arras, Director, Education Workforce, and Income
Security, U.S. Government Accountability Office, Washington,
D.C.; the Honorable Kathleen Tighe, Inspector General, U.S.
Department of Education, Washington, D.C.; Mr. Ben Miller,
Senior Director, Postsecondary Education, Center for American
Progress, Washington, D.C.; and Mr. Justin Draeger, President,
National Association of Student Financial Aid Administrators,
Washington, D.C.
Legislative action
On July 23, 2015, then-HEWT Subcommittee Chairwoman Foxx
along with then-Chairman Kline, Ranking Member Robert C.
``Bobby'' Scott (D-VA), and Reps. Messer, Gregorio Sablan (D-
MP), Tim Walberg (R-MI), Joe Heck (R-NV), Buddy Carter (R-GA),
Elise Stefanik (R-NY), Susan Davis (D-CA), Raul Grijalva (D-
AZ), and Mark DeSaulnier (D-CA) reintroduced H.R. 3178, the
Strengthening Transparency in Higher Education Act. The bill
ensured straightforward and useful information is easily
accessible to students and parents and improved coordination
between federal agencies to publish information about colleges
and universities. On June 22, 2016, the Committee considered
H.R. 3178 in legislative session and reported it favorably, as
amended, to the House of Representatives by voice vote. On July
11, 2016, the House of Representatives passed H.R. 3178 by
voice vote. The bill was sent to the Senate and referred to the
Senate Committee on Health, Education, Labor, and Pensions
where no further action was taken. This policy is included in
H.R. 4508.
On July 23, 2015, Rep. Brett Guthrie along with then-
Chairman Kline, Ranking Member Scott, and Reps. Rick Allen (R-
GA), Suzanne Bonamici (D-OR), Duncan Hunter (R-CA), Walberg,
Heck, Messer, Carter , Stefanik, Davis, Grijalva, Sablan (D-
MP), Mark Pocan (D-WI), Mark Takano (D-CA), Katherine Clark (D-
MA), Mark DeSaulnier, and Hudson, reintroduced H.R. 3179,
Empowering Students Through Enhanced Financial Counseling Act.
The bill promotes financial literacy through enhanced
counseling for all recipients of federal financial aid. On June
22, 2016, the Committee considered H.R. 3179 in legislative
session and reported it favorably, as amended, to the House of
Representatives by voice vote. On July 11, 2016, the House of
Representatives passed H.R. 3179 by voice vote. The bill was
sent to the Senate and referred to the Senate Committee on
Health, Education, Labor, and Pensions where no further action
was taken. This policy is included in H.R. 4508.
On June 20, 2016, Rep. Heck along with Reps. David ``Phil''
Roe (R-TN), Jared Polis (D-CO), and Pocan introduced H.R. 5528,
the Simplifying the Application for Student Aid Act. The bill
ensured continued allowance for earlier notification of federal
student aid, leveraged technology to make the application for
federal student aid more accessible and easier to fill out, and
provided more time for financial aid administrators to verify
and package student aid. On June 22, 2016, the Committee
considered H.R. 5528 in legislative session and reported it
favorably, as amended, to the House of Representatives by voice
vote. On July 11, 2016, the House of Representatives passed
H.R. 5528 by voice vote. The bill was sent to the Senate and
referred to the Senate Committee on Health, Education, Labor,
and Pensions where no further action was taken. This policy is
included in H.R. 4508.
On June 20, 2016, Rep. Heck along with Reps. Ruben Hinojosa
(D-TX) and Raul Ruiz (D-CA) introduced H.R. 5529, the Accessing
Higher Education Opportunities Act. The bill expanded the
authorized uses of funds for Hispanic-Serving Institutions
(HSIs), so they may promote dual enrollment opportunities and
encourage Hispanic students to pursue doctoral degree programs
in the healthcare industry. On June 22, 2016, the Committee
considered H.R. 5529 in legislative session and reported it
favorably, as amended, to the House of Representatives by voice
vote. On July 11, 2016, the House of Representatives passed
H.R. 5529 by voice vote. The bill was sent to the Senate and
referred to the Senate Committee on Health, Education, Labor,
and Pensions where no further action was taken. Aspects of this
policy are included in H.R. 4508.
On June 20, 2016, Reps. Alma Adams (D-NC) and Bradley Byrne
(R-AL) introduced H.R. 5530, the HBCU Capital Financing
Improvement Act. The bill improved the program by requiring the
advisory board to send an annual report to Congress regarding
the status of the Historically Black College and University
(HBCU) Capital Financing Program. Additionally, the bill
renamed the escrow account to ``bond insurance fund.'' The bill
also allowed for financial counseling to eligible HBCUs to
assist in their preparation to qualify, apply for, and maintain
a capital improvement loan. On June 22, 2016, the Committee
considered H.R. 5530 in legislative session and reported it
favorably, as amended, to the House of Representatives by voice
vote. On July 11, 2016, the House of Representatives passed
H.R. 5530 by voice vote. The bill was sent to the Senate and
referred to the Senate Committee on Health Education, Labor,
and Pensions where no further action was taken. This policy is
included in H.R. 4508.
115TH CONGRESS
First Session--Hearings
On February 7, 2017, the Committee held a hearing in
Washington, D.C., on ``Challenges and Opportunities in Higher
Education.'' The purpose of the hearing was to learn more about
the main challenges and opportunities facing America's higher
education system and gain a better understanding of some of the
major policy proposals that align with the Committee's four key
priorities for HEA reauthorization: (1) promoting innovation,
access, and completion; (2) simplifying and improving student
aid; (3) empowering students and families to make informed
decisions; and (4) ensuring strong accountability and a limited
federal role. Testifying before the Committee were Dr. Beth
Akers, Senior Fellow, Manhattan Institute, New York City, New
York; Dr. William English ``Brit'' Kirwan, Co-Chair, Task Force
on the Federal Regulation of Higher Education, Rockville,
Maryland; Dr. Jose Luis Cruz, President, Lehman College, Bronx,
New York; and Mr. Kevin Gilligan, Chairman and Chief Executive
Officer, Capella Education Company, Minneapolis, Minnesota.
On March 21, 2017, the Committee held a hearing in
Washington, D.C., on ``Improving Federal Student Aid to Better
Meet the Needs of Students.'' The purpose of the hearing was to
detail the complex federal patchwork of grants, loans, and
campus-based aid programs, as well as discuss the need for
streamlining, consolidating, and simplifying these student aid
programs. Testifying before the Committee were Ms. JoEllen
Soucier, Executive Director of Financial Aid, Houston Community
College System, Houston, Texas; Ms. Kristin Conklin, Partner,
HCM Strategists, Washington, D.C.; Mrs. Youlonda Copeland-
Morgan, Vice Provost of Enrollment Management, University of
California, Los Angeles, Los Angeles, California; and Dr. Matt
Chingos, Senior Fellow, Urban Institute, Washington, D.C.
On April 27, 2017, the Committee held a hearing in
Washington, D.C., on ``Strengthening Accreditation to Better
Protect Students and Taxpayers.'' The purpose of the hearing
was to provide an overview of the accreditation system, explore
how the system provides accountability for both students and
taxpayers and examine ways the current accreditation system
could be strengthened. Testifying before the Committee were Dr.
Mary Ellen Petrisko, President, Western Association of Schools
and Colleges, Senior College and University Commission,
Alameda, California; Dr. George A. Pruitt, President, Thomas
Edison State University, Trenton, New Jersey; Mr. Ben Miller,
Senior Director for Postsecondary Education, Center for
American Progress, Washington, D.C.; Dr. Michale S. McComis,
Executive Director, Accrediting Commission of Career Schools
and Colleges, Arlington, Virginia.
On May 24, 2017, the Subcommittee on Higher Education and
Workforce Development (HEWD), formerly the HEWT Subcommittee,
held a hearing in Washington, D.C., on ``Empowering Students
and Families to Make Informed Decisions on Higher Education.''
The purpose of the hearing was to demonstrate that it is
possible to improve the higher education data landscape while
continuing to maintain student privacy, empower students and
families to make more informed decisions, and ensure
policymakers have the information needed to determine whether
taxpayers are getting a return on their significant investment
in postsecondary education. Testifying before the Subcommittee
were Dr. Mark Schneider, Vice President, American Institutes
for Research, Washington, D.C.; Mr. Jason Delisle, Resident
Fellow, American Enterprise Institute, Washington, D.C.; Ms.
Mamie Voight, Vice President of Policy Research, Institute for
Higher Education Policy, Washington, D.C.; and Mr. Andrew
Benton, President and Chief Executive Officer, Pepperdine
University, Malibu, California.
On July 26, 2017, the HEWD Subcommittee held a hearing in
Washington, D.C., on ``Expanding Options for Employers and
Workers Through Earn-and-Learn Opportunities.'' The purpose of
the hearing was to discuss apprenticeship programs and consider
how changes to the Registered Apprenticeship program may
improve opportunities for employees and lead to greater
employer participation. Testifying before the Subcommittee were
Mr. Mike Bennett, Vice President, Cianbro, Pittsfield, Maine;
Mr. Robert Peglow, student, Kentucky Federation for Advanced
Manufacturing Education (KYFAME), Franklin, Kentucky; Mr. Rob
Hogan, Vice President of Manufacturing and Material
Distribution, Newport News Shipbuilding, Newport News,
Virginia; and Ms. Stacey Johnson Hughes, State Chair, Kentucky
Federation for Advanced Manufacturing Education, Russellville,
Kentucky.
On October 24, 2017, the Committee, together with the
Committee on Homeland Security, held a hearing in Washington,
D.C., on ``Public-Private Solutions to Educating a Cyber
Workforce.'' The purpose of the hearing was to discover best
practices for cybersecurity workforce development. The joint
hearing provided the opportunity to hear from witnesses who
have studied the issues of cybersecurity workforce recruitment
and retention, as well as those who have instituted successful
recruitment and retention programs for their own workforce.
Testifying before the Subcommittee were the Honorable Stephen
A. Cambone, Associate Vice Chancellor, Texas A&M University
System, College Station, Texas; Mr. Douglas Rapp, President,
Cyber Leadership Alliance, Zionsville, Indiana; Dr. R. Scott
Ralls, President, Northern Virginia Community College,
Annandale, Virginia; and Mr. David Jarvis, Security & CIO Lead,
IBM Institute for Business Value, Portsmouth, Rhode Island.
Legislative action
On December 1, 2017, Chairwoman Foxx and HEWD Subcommittee
Chairman Guthrie introduced H.R. 4508, the Promoting Real
Opportunity, Success, and Prosperity Through Education Reform
Act (PROSPER Act).
On December 12, 2017, the Committee considered H.R. 4508 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a vote of 23 to 17. The
Committee considered and adopted the following amendments to
H.R. 4508:
1. Amendment in the Nature of a Substitute--HEWD
Subcommittee Chairman Guthrie offered an amendment in the
nature of a substitute. The amendment was adopted by voice
vote.
2. Apprenticeships in Federal Work Study--Rep. Ron Estes
(R-KS) offered an amendment to allow institutions to use a
portion of their federal work study dollars to identify and
expand opportunities for apprenticeships for students and to
assist employers in developing jobs that are part of
apprenticeship programs. The amendment was adopted by a 22-17
vote.
3. Hazing--Rep. Glenn Thompson (R-PA) offered an amendment
to curb hazing on college campuses. The amendment was adopted
by a 23-17 vote.
4. Opioid Addiction Recovery--Rep. Lloyd Smucker (R-PA)
offered an amendment to require the Secretary to share best
practices on successful college recovery programs and provide
support and technical assistance to increase the number and
capacity of high-quality programs to help students in recovery
from opioid addiction. The amendment was adopted by voice vote.
5. Drug and Opioid Prevention--Rep. Carol Shea-Porter (R-
NH) offered an amendment to clarify H.R. 4508 provisions
relating to required drug and opioid prevention programming
provided by institutions. The amendment was adopted by voice
vote.
6. Early Awareness--Rep. Drew Ferguson (R-GA) offered an
amendment that requires the Secretary to report on activities
undertaken to disseminate financial aid information to high
school students and clarifies that such information should also
improve the financial and economic literacy of students and
their parents. The amendment was adopted by voice vote.
7. Competency-Based Education--Rep. Glenn Grothman (R-WI)
offered an amendment to amend the definition of a competency,
clarify the restriction on using student aid for prior
learning, allow for unequal disbursements of aid based on
academic progress, and streamline the accreditation review of
CBE programs. The amendment was adopted by a 22-17 vote.
8. Assurance of Annual Counseling--Rep. Grothman offered an
amendment to require financial aid administrators to annually
affirm to the Secretary that they have provided the required
counseling to all students receiving Title IV assistance. The
amendment was adopted by a 21-19 vote.
9. Early Estimator Tool Disclosure--Rep. Estes offered an
amendment to add a disclosure to students using the early
estimator tool to inform them about the difference between a
loan and a grant. The amendment was adopted by voice vote.
10. Inclusion and Respect--Rep. Tom Garrett (R-VA) offered
an amendment to express the Sense of Congress on inclusion and
respect. The amendment was adopted by voice vote.
11. Complaint on Speech Policies--Rep. Garrett offered an
amendment to require the Secretary to designate an employee at
the Office of Postsecondary Education at the Department to
receive complaints from students who believe an institution is
not in compliance with a disclosed policy on speech or is
enforcing a policy that has not previously been disclosed. The
amendment was adopted by a 23-17 vote.
12. Additional Counseling--Rep. Allen offered an amendment
to clarify that nothing shall prevent institutions from
providing additional financial aid counseling to recipients of
aid under Title IV. The amendment was adopted by voice vote.
13. Reduction of Full Time Department Employees--Rep. Todd
Rokita (R-IN) offered an amendment that directs the Secretary
to identify the number of full-time equivalent employees at the
Department who work on or administer education programs and
projects eliminated or consolidated under the bill and reduce
the Department by that number of employees. The amendment was
adopted by a 23-17 vote.
14. United States Institute of Peace--Rep. Thompson offered
an amendment to strike the repeal of the United States
Institute of Peace. The amendment was adopted by voice vote.
15. Pell Grant Bonus Study--Rep. Grothman offered an
amendment to require the Secretary to study the impact of the
Pell Grant Bonus. The amendment was adopted by voice vote.
16. DHS Recruiting--Rep. Hunter offered an amendment to
prohibit access to federal student aid for institutions of
higher education that prohibit or prevent the Department of
Homeland Security from recruiting on campus. The amendment was
adopted by voice vote.
17. Borrower Defense--Rep. Luke Messer (R-IN) offered an
amendment to clarify that a borrower can submit an application
for a defense to repayment no later than three yearsafter the
misconduct, require the Secretary to submit a report to Congress
indicating established policies and procedures, and require the
Secretary to inform the borrower of deadlines, document requests, and
the ability to seek a review under the Administrative Procedure Act.
The amendment was adopted by voice vote.
18. Study on Moving FSA to Treasury--Rep. Messer offered an
amendment to require the GAO to study the feasibility and
practicality of moving the Office of Federal Student Aid from
the Department of Education to the Department of the Treasury.
The amendment was adopted by voice vote.
19. Plain Language Disclosure--Rep. Messer offered an
amendment to direct the Secretary to develop a consumer
friendly disclosure form for borrowers of federal student
loans. The amendment was adopted by voice vote.
20. Reverse Transfer--Rep. Polis offered an amendment to
amend the General Education Provisions Act to allow for reverse
transfer of student data. The amendment was adopted by voice
vote.
Summary
Since 1965, the Higher Education Act (HEA) has provided
federal support to both individuals pursuing a postsecondary
education and institutions of higher education. However,
federal law is no longer working for postsecondary students.
Since the last reform of the HEA in 2008 (the Higher Education
Opportunity Act), our country has faced an economic crisis and
the higher education landscape has significantly changed. Since
the 2008 recession began, America faces a shortage of 6 million
skilled workers. Students are facing higher tuition rates and
student loan borrowers currently have more than a trillion
dollars in student debt. Reforms must be made to assist
students in completing an affordable higher education that will
prepare them to enter the workforce with the skills they need
to be successful.
The PROSPER Act will help more Americans earn a lifetime of
success by doing the following:
Promoting innovation, access, and
completion;
Simplifying and improving student aid;
Empowering students and families to make
informed decisions; and
Ensuring strong accountability and a limited
federal role.
Promoting innovation, access, and completion
Strengthens Workforce Development. The bill
expands opportunities for students to participate in industry-
led earn-and-learn programs that lead to high-wage, high-skill,
and high-demand careers by supporting partnerships between
industry and institutions to develop these programs. It also
allows students to use Pell Grants for shorter-term programs
that will assist them in entering the workforce more quickly.
Additionally, the legislation focuses additional resources on
the Federal Work-Study program, while eliminating the arbitrary
cap that prevents more than 25 percent of an institution's
Work-Study funding from flowing to students working at private-
sector companies. The bill also allows institutions to use more
resources to locate and develop ``work-based'' learning jobs,
including apprenticeships, for students that align with the
students' career goals. The bill allows institutions to use
institutional aid to develop and implement career-specific
programs. It also requires accrediting agencies to have at
least one representative from the business community on the
agency's board.
Encourages Innovative Learning. The bill repeals
the outdated and rigid definition of distance education, making
it possible for institutions to develop more innovative methods
of delivering postsecondary education. It also encourages
competency-based education by creating a clear pathway for such
programs to be eligible for federal student aid to help
students attain a less costly degree based on their own
learning schedule. The bill also allows new providers of higher
education to collaborate with traditional colleges and
universities to offer educational programs to students that are
eligible for student aid.
Emphasizes Access and Completion. The bill
encourages Pell-eligible students to complete on-time and with
less debt by offering a $300 Pell Grant bonus to students who
take 15 credits per semester in an award year. The legislation
also reforms the TRIO programs to more easily allow first-time
applicants the opportunity to compete for a grant, increasing
access to the programs for more students by requiring a 20
percent non-federal match and encouraging evidence-based
programs focused on increasing college access and completion by
setting aside at least 10 percent of grant funds for this
purpose.
Simplifying and improving student aid
Further Simplifies the FAFSA. The bill aligns the
maximum income threshold required to qualify for the simplified
version of FAFSA, known as the simplified needs test, with the
simplified tax forms, so more middle class families will be
able to easily and quickly complete the form. The bill also
ensures students are allowed to continue to apply for federal
student aid with income data from two years prior to the date
of application. It also makes the FAFSA available on a mobile
app and requires both the app and the online form to be
consumer-tested so it is clear and easy to use.
Streamlines Student Aid. The bill streamlines
student aid programs into one grant program, one loan program,
and one work-study program to ease confusion for students who
are deciding the best options available to responsibly pay for
their college education.
One Grant. The bill reauthorizes the
Pell Grant program through Fiscal Year 2024 and
requires institutions to disburse the grants to
students on a weekly or monthly basis, similar to a
paycheck. It also directs the Secretary of Education
(the Secretary) to annually provide an individualized
Pell Grant status report to each grant recipient, so
students are aware of how much of the grant they have
used and how much is left. Further, the bill includes a
provision to prevent fraud in the Pell Grant program by
prohibiting students from receiving additional Pell
Grants if they received a grant for three award years
but did not earn any academic credit. The bill also
provides the Secretary additional discretion to stop
payments to students with unusual enrollment histories.
One Loan. The bill streamlines the six
loans currently available into the new Federal ONE Loan
Program with one unsubsidized loan per category of
borrower: an undergraduate loan, a graduate loan, and a
parent loan. The program offers reasonable annual and
aggregate limits on undergraduate, graduate, and parent
borrowing and allows financial aid administrators to
develop lower loan limits for certain categories of
borrowers to ensure responsible lending. Like the
reform in the Pell Grant program, institutions are
required to disburse loans to students on a weekly or
monthly basis, similar to a paycheck. The bill
eliminates the origination fees borrowers are currently
charged for each loan disbursed and maintains the
market-driven interest rates set in current law.
One Work-Study. The bill reforms the
outdated Federal Work-Study program allocation formula
by equitably distributing work-study dollars based on
Pell Grant dollars and undergraduate student need. It
creates a new set aside of up to $150 million for
institutions that have strong Pell Grant recipient
completion rates or have significant improvement of the
rate from the preceding academic year. The bill also
focuses the limited funding in this program for
students pursuing an undergraduate degree.
Simplifies Repayment. The bill pares down the maze
of loan repayment options to one standard 10-year repayment
plan and one income-based repayment (IBR) plan. Borrowers in
the IBR plan have affordable monthly payments of no more than
15 percent of their discretionary income. Borrowers enrolled in
the IBR plan will make such monthly payments until they repay
the principal and interest they would have paid under a
standard 10-year plan, as calculated when they entered
repayment.
Empowering students and families to make informed decisions
Improves Early Awareness. The bill requires the
Secretary, in consultation with states, institutions of higher
education, secondary schools, and college access programs, to
notify secondary school students no later than the students'
sophomore year of the availability of federal financial aid and
the difference between federal grants and loans. It also
encourages states, institutions of higher education, and other
stakeholders to share best practices on disseminating
information about financial assistance to these students.
Additionally, the bill directs the Secretary to maintain a
consumer-tested early estimator tool, available online and
through a mobile app, that will give students and parents an
estimate of a student's potential federal aid eligibility.
Increases Transparency. The bill requires the
Secretary to create a consumer-tested College Dashboard that
displays key information about colleges and universities,
including enrollment, completion, cost, and financial aid. The
College Dashboard will include aggregated information on the
average debt of borrowers at graduation and the average salary
of students who received federal financial aid both five and 10
years after graduation for each program at an institution of
higher education that participates in a student aid program
under Title IV. The Secretary is also required to provide
students a link to the College Dashboard page of each
institution listed on the student's FAFSA to make sure students
know this information is available.
Enhances Financial Aid Counseling. The bill
requires all recipients of federal student aid to undergo
enhanced financial aid counseling, including--for the first
time--Pell Grant recipients and parent borrowers. The bill
requires loan counseling to be tailored to a borrower's
individual situation as well as improves the timing and
frequency by requiring annual loan counseling before an
individual signs on the dotted line, so the borrower, both
students and parents, have the most current information. Exit
counseling is bolstered to include information on the
borrower's outstanding loan balance and anticipated monthly
payments and contact information for the borrower's loan
servicer. Annual Pell Grant counseling is also required for all
Pell recipients.
Ensuring strong accountability and a limited federal role
Strengthens Accountability through Accreditation.
To streamline federal requirements placed on accreditors and
focus accreditors on reviewing student outcomes, the bill
replaces the current 10 statutory accreditation standards with
a requirement that accreditors have standards that assess the
institution's success in relation to the institution's mission
with respect to student learning and educational outcomes. The
bill also increases institutional accountability, without
involvement by the Secretary. It does so by requiring
accreditors have a system in place to annually identify
accredited institutions or programs experiencing difficulties
accomplishing their missions with respect to their established
student learning and educational outcome goals.
Increases Institutional Risk-Sharing. The bill
reforms the return to Title IV process, which governs how
unearned student aid dollars are returned to the federal
government, to reduce burden and increase institutional risk-
sharing tied to student completion. To push institutions to
focus on student completion and require institutions to share
in the risk of non-completion, the burden of repaying unearned
aid when a student withdraws from an institution is shifted on
to the institution. Further, the bill replaces the
institutional-level cohort default rate with a program-level
loan repayment rate which will target federal student aid to
only those programs where graduates have the ability to repay
their student loans.
Eliminates Burdensome Regulations and Unnecessary
Reporting Requirements. The bill eliminates burdensome federal
regulations that put Washington in the middle of issues that
are the responsibility of institutions or states, limit student
choice, and stifle innovative practices by institutions. The
bill also repeals or streamlines reporting requirements that
fail to provide useful information to students, families, and
policymakers, and exacerbate rising college costs.
Reduces the Secretary's Authority. The bill places
strong prohibitions on the Secretary by explicitly prohibiting
him/her from exceeding his/her authority, defining any terms
inconsistent with the HEA, or adding any requirements on
institutions and states that are not explicitly authorized in
the law.
Repeals Unfunded Programs. The bill repeals all
unfunded programs ensuring congressional priorities are
maintained in the future.
Committee Views
Introduction
Our nation's higher education system is in need of
comprehensive reform. We can no longer rubber stamp a law first
created over fifty years ago. Reforming the Higher Education
Act (HEA) provides policymakers an opportunity to improve the
law and strengthen America's postsecondary system for students,
parents, institutions, and taxpayers.
Since the last reform of the HEA in 2008, our country has
faced an economic crisis and the higher education landscape has
seen significant change. Since the 2007 recession began, the
American workforce faces a shortage of 6 million skilled
workers.\1\ At the same time, students are facing higher
tuition rates and have collectively taken on $1.34 trillion
dollars in student debt.\2\ The average debt per borrower has
increased 38 percent since 2008,\3\ and graduation rates remain
low, with an average six-year completion rate of only 54.8
percent.\4\ Unprecedented levels of student debt are having an
impact on students and families, and creating a major drag on
economic growth. The six different types of federal student
loans, nine repayment plans, eight forgiveness programs, and 32
deferment and forbearance options under current law have
created more burden than opportunity for students. Reforms need
to be made to assist students in completing an affordable
higher education that will prepare them to enter the workforce
with the skills they need to be successful.
---------------------------------------------------------------------------
\1\Job Openings and Labor Turnover Summary, U.S. Bureau of Labor
Statistics (2017), https://www.bls.gov/news.release/jolts.nr0.htm.
\2\Federal Student Loan Portfolio Summary, Federal Student Aid
(2017), https://studentaid.ed.gov/sa/sites/default/files/fsawg/
datacenter/library/PortfolioSummary.xls.
\3\Id.
\4\Completing College: A National View of Student Attainment
Rates--Fall 2010 Cohort, National Student Clearinghouse Research Center
(2016), https://nscresearchcenter.org/wp-content/uploads/
SignatureReport12.pdf.
---------------------------------------------------------------------------
The Promoting Real Opportunity, Success, and Prosperity
through Education Reform Act (PROSPER Act), H.R. 4508, reforms
the HEA to help more Americans earn a lifetime of success by
promoting innovation, access, and completion; simplifying and
improving student aid; empowering students and families to make
informed decisions; and ensuring strong accountability and a
limited federal role.
Title I--General Provisions
Single definition
Over the last few decades, the number and percentage of
nontraditional, or contemporary, students attending
postsecondary education institutions has increased. A 2015
report released by the National Center for Education Statistics
(NCES) stated:
While definitions vary, researchers generally
consider nontraditional students to have the following
characteristics: being independent for financial aid
purposes, having one or more dependents, being a single
caregiver, not having a traditional high school
diploma, delaying postsecondary enrollment, attending
school part time, and being employed full time . . . .
About 74 percent of all 2011-12 undergraduates had a
least one nontraditional characteristic. Moreover, this
result is consistent over recent decades: since 1995-
96, at least 70 percent of undergraduates possessed at
least one nontraditional characteristic.\5\
---------------------------------------------------------------------------
\5\Demographic and Enrollment Characteristics of Nontraditional
Undergraduates: 2011-12, National Center for Education Statistics
(2015), https://nces.ed.gov/pubs2015/2015025.pdf.
---------------------------------------------------------------------------
For most nontraditional students, alternate paths of
postsecondary education (e.g., career and technical education
schools, community colleges, or proprietary institutions) best
serve the needs of these students. In fact, an alternative path
is often provided by the proprietary college sector. During a
July 8, 2011, hearing, Dr. Anthony Carnevale, Director of the
Georgetown University Center on Education and the Workforce,
stated:
The for-profit sector has many strengths and is a
necessary component of a functional higher education
system. It has been wildly successful in enrolling
[nontraditional] students, especially older students,
minorities, and hard-to-serve students. Moreover, the
for-profit sector has proven adept at creating and
refining a model of postsecondary education that works
for students, offering flexibility not found in other
sectors.\6\
---------------------------------------------------------------------------
\6\Testimony of Dr. Anthony Carnevale Before the Committee on
Education and the Workforce Subcommittee on Higher Education and
Workforce Training and the Committee on Oversight and Government Reform
Subcommittee on Regulatory Affairs, Stimulus Oversight, and Government
Spending, Hearing on The Gainful Employment Regulation: Limiting Job
Growth and Student Choice, July 8, 2011, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=249467.
---------------------------------------------------------------------------
In an effort to not limit the postsecondary options
available to students, the PROSPER Act updates legal
definitions within the HEA to ensure all eligible institutions
are recognized fully as institutions of higher education. The
current dual definition negatively impacts students because it
implies some institutions are less worthy than others, or may
not have the same standing as part of our nation's higher
education system when it comes to providing opportunities to
students.
The Committee strongly believes parity among all
institutions will lead to greater equality and better position
all students to be successful. Current law prohibits
proprietary institutions from receiving institutional aid and
the Committee believes this prohibition should remain. With
this said, the PROSPER Act does not allow proprietary
institutions to receive institutional aid, but does allow for
centers, programs, and fellowships geared toward education in
foreign languages and area studies to be created and operated
at all institutions of higher education.
Foreign institutions
Students looking to pursue a postsecondary education have
the option to attend a domestic institution, a foreign
institution, or a combination of both. Students who attend a
foreign institution have the option to use federal financial
aid at institutions that participate in the federal financial
aid program. According to data released in October 2017, there
are over 700 foreign institutions participating in the federal
financial aid program, including foreign graduate medical,
foreign nursing, and foreign veterinary schools.\7\
---------------------------------------------------------------------------
\7\International Schools That Participate in the Federal Student
Loan Programs, Postsecondary Education Participants System (2017),
https://studentaid.ed.gov/sa/prepare-for-college/choosing-schools/
types/international.
---------------------------------------------------------------------------
To gain eligibility and remain eligible to participate in
federal student financial aid, foreign graduate medical,
nursing, and veterinary schools must meet additional criteria.
The PROSPER Act amends the additional eligibility criteria for
foreign graduate medical schools to better meet the needs of
the students by encouraging these institutions to provide
higher quality programs and by holding them accountable for the
performance of students receiving Title IV aid. The Committee
also believes that foreign institutions should have the
ability, like domestic institutions, to have written
arrangements with ineligible institutions offering quality
courses aligned with the program of study. Not all foreign
institutions choose to participate in federal student financial
aid. The Committee believes a decision by a foreign institution
not to participate in federal student financial aid is not a
determination of the quality of the programs offered. American
students at foreign institutions participating in the federal
student financial aid program should have the opportunity to
benefit from a variety of quality programs.
The PROSPER Act allows foreign institutions located in
countries with auditing standards comparable to the
International Financial Reporting Standards (IFRS) to submit
only one audit report. Foreign institutions located in
countries without comparable IFRS standards are still required
to submit two audit reports. The requirement on foreign
institutions to submit two audit reports costs institutions
anywhere from $50,000 to $400,000 annually, and the Committee
believes, with the appropriate quality controls, these funds
could be better spent on students rather than on meeting
burdensome federal government requirements.
Innovative forms of education
The higher education sector is often resistant to change
and innovation. Despite the proliferation of creative learning
models and dramatically changing demographics of the student
population, most colleges and universities continue to use the
same worn tactics to instruct students. Federal rules favor the
status quo, even as technology has rapidly transformed the way
students learn and consume information. The law must be more
flexible for future innovations, and institutions must be
willing to meet the needs of contemporary students.
H.R. 4508 repeals the antiquated and rigid definition of
distance education and instead creates a definition of
``correspondence education,'' making it possible for
institutions to develop more creative methods of delivering
postsecondary education. The PROSPER Act allows for innovative
methods of providing postsecondary education to be supported,
so long as the innovation is not correspondence education and
institutions providing the education meet all other applicable
requirements under the HEA. The Committee believes removing
this outdated definition and its related regulatory roadblocks
will give institutions the needed flexibility to innovate.
Student speech and association protections
Recent episodes on college and university campuses expose a
growing trend of intolerance and hostility toward speech deemed
by some to be disagreeable or offensive. Incidents have
included violently disrupting speeches and events,\8\ threating
teachers,\9\ and silencing opposing opinions.\10\ The founders
of our country believed a free expression of ideas and speech
was an essential foundation to our nation, and captured its
importance in the First Amendment. In a 1783 address to the
officers of the Army, General George Washington highlighted the
importance of this fundamental freedom:
---------------------------------------------------------------------------
\8\Eugene Volokh, Protesters at Middlebury College shout down
speaker, attack him and a professor, The Washington Post (March 4,
2017), https://www.washingtonpost.com/news/volokh-conspiracy/wp/2017/
03/04/protesters-at-middlebury-college-shout-down-speaker-attack-him-
and-a-professor/?utm_term=.ed299f4d14ab.
\9\Colleen Flaherty, Old Criticisms, New Threats, FIRE (June 26,
2017), https://www.insidehighered.com/news/2017/06/26/professors-are-
often-political-lightning-rods-now-are-facing-new-threats-over-their.
\10\Nationwide: Colleges Across the Country Disinvite Commencement
Speakers, FIRE (2014), https://www.thefire.org/cases/disinvitation-
season/.
If men are to be precluded from offering their
sentiments on a matter which may involve the most
serious and alarming consequences that can invite the
consideration of mankind, reason is of no use to us.
The freedom of speech may be taken away, and dumb and
silent, we may be led like sheep to the slaughter.\11\
---------------------------------------------------------------------------
\11\Newburgh Address: George Washington to Officers of the Army,
March 15, 1783, George Washington's Mount Vernon, http://
www.mountvernon.org/education/primary-sources-2/article/newburgh-
address-george-washington-to-officers-of-the-army-march-15-1783/.
---------------------------------------------------------------------------
The First Amendment prohibits the government from
infringing on free speech rights. Therefore, all public
colleges and universities, as state agents, are legally bound
to respect the constitutional rights of their students,
including the right to free speech. As the Foundation for
Individual Rights in Education has noted:
That the First Amendment applies on the public
university campus is settled law. Public universities
have long occupied a special niche in the Supreme
Court's First Amendment jurisprudence. Indeed, the
Court has held that First Amendment protections on
campus are necessary for the preservation of our
democracy.\12\
---------------------------------------------------------------------------
\12\State of the Law: Speech Codes, FIRE (2018), www.thefire.org/
in-court/state-of-the-law-speech-codes/.
---------------------------------------------------------------------------
The Committee believes public institutions of higher
education should not engage in activities that would stifle any
constitutionally protected speech of a member or invited guest
inthe educational community. Therefore, H.R. 4508 amends the
existing Sense of Congress on Student Speech and Association Rights to
express that free speech zones and restrictive speech codes are
inherently at odds with the First Amendment and public institutions
receiving funds under the HEA should not restrict the speech of their
students.
Private universities are not directly bound by the First
Amendment, which limits only government action, and have the
right to place a particular set of moral, philosophical, or
religious teachings above a commitment to free expression.
While private colleges and universities do not have the same
constitutional obligations as their public counterparts, the
Committee believes colleges and universities should be
marketplaces of ideas and urges those institutions to do what
they can to ensure their campuses foster robust debate and
discussions that include all views.
The Committee also believes it is critical that students
and members of the campus community are able to exercise their
right to speak freely and express their views in organizations
and events on campus and that students are informed of any
policies that may limit their ability to do so. Therefore, H.R.
4508 requires institutions of higher education--in order to be
eligible to receive funds under the law--to disclose annually
to current and prospective students any policies held by the
institution related to protected speech on campus, including
policies limiting where and when such speech may occur. The
legislation also requires the Secretary of Education
(Secretary) to designate an employee within the Office of
Postsecondary Education to receive complaints from students who
believe an institution is not in compliance with a disclosed
policy on speech or is enforcing a policy that has not
previously been disclosed.
Further, the Committee believes that no student attending
an institution of higher education on a full- or part-time
basis should, on the basis of participation in protected speech
or protected association, including participation in a single-
sex social organization, be excluded from participation in, be
denied the benefits of, or be subjected to discrimination or
official sanction under any education program, activity, or
division of the institution directly or indirectly receiving
financial assistance under the HEA, whether or not such
program, activity, or division is sponsored or officially
sanctioned by the institution.
Higher education transparency
Selecting a college or university is a personal decision
for students and their families, with many variables involved
in the decision-making process. To assist them in this
decision, the federal government has taken steps in recent
years to improve data collection and transparency in higher
education, with better data ideally resulting in more informed
choices. The Higher Education Opportunity Act, the 2008
reauthorization of the HEA, required colleges and universities
to make information about price, financial aid, and basic facts
and figures--such as student demographics and graduation
rates--readily available to the public. There are numerous
other federal transparency initiatives currently available to
students and their families that are authorized under HEA and
that are created by various federal entities. However, instead
of providing clarity, these initiatives add more confusion by
presenting conflicting or redundant information with limited
opportunity to compare different education options. Further
complicating matters, available data does not include a large
portion of the current college-going population or capture all
crucial information students and families need to view and
understand the entire landscape of higher education. Despite
attempts by the federal government to improve data collection
and transparency in the higher education system, students and
families still struggle to access and understand information
helpful in selecting the right postsecondary institution for
their unique situations.
During an April 24, 2013, hearing Mr. Travis Reindl,
Program Director for the Education Division at the National
Governors Association, urged Congress to streamline and improve
higher education data for students:
Simpler and clearer should be a goal for federal
efforts. The upcoming reauthorization of the Higher
Education Act provides a prime opportunity for the
[sic] Congress to review all of the existing
dashboards, report cards, and data tools for
postsecondary education to determine whether and how
they are being used and if there are opportunities for
streamlining or consolidation.\13\
---------------------------------------------------------------------------
\13\Testimony of Travis Reindl Before the House Committee On
Education and the Workforce Subcommittee on Higher Education and
Workforce Training, Hearing on Keeping College Within Reach: Enhancing
Transparency for Students, Families and Taxpayers, April 24, 2013,
https://edworkforce.house.gov/calendar/eventsingle.aspx?EventID=330710.
Additionally, Dr. Michelle Cooper, President of the
Institute for Higher Education Policy, noted at an April 30,
2015, hearing that ``[f]or first-generation and low-income
students, having access to clear and reliable information is
critical.''\14\
---------------------------------------------------------------------------
\14\Testimony of Michelle Cooper Before the Committee on Education
and the Workforce Subcommittee on Higher Education and Workforce
Training, Hearing on Improving College Access and Completion for Low-
Income and First-Generation Students, April 30, 2015, https://
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=398748.
To streamline the confusing and conflicting information
currently available, the bill eliminates the requirement that
the Secretary gather and publish information institutions are
already making publicly available on their websites. To help
families make an informed decision, H.R. 4508 requires a
streamlined and consumer-tested College Dashboard that will
prominently display important data points on each institution,
such as the size and type of the institution, the net price to
attend, program-level debt and earnings information, and the
completion rates of students who attend the institution.
Additionally, the legislation ensures the College Dashboard
allows students to easily compare this information to other
institutions, disaggregated by key demographic areas, including
race, socioeconomic level, and disability status. While all
institutions of higher education participating in the federal
student aid programs are required to report information to be
displayed on the College Dashboard, the Committee recognizes
students may want information on institutions that do not
participate in the student aid programs. Therefore, the
Committee urges the Secretary to allow any other institution of
higher education to be included on the College Dashboard. As
part of this streamlining, H.R. 4508 repeals the College
Navigator, the College Affordability and Transparency Lists,
the State Higher Education Spending Chart, and the Multi-year
Tuition Calculator.
H.R. 4508 requires, for the first time, aggregated
information on the average debt of borrowers at graduation and
the average salary of students who received federal financial
aid both five and 10 years after graduation for each program at
a participating institution of higher education be provided, so
students can make informed decisions about where they want to
pursue postsecondary education and what they want to study.
This information will allow students to see what they could
potentially earn as graduates from a particular program and
then decide if those earnings match up to the cost of the
institution under consideration.
In a December 2017 op-ed in the Washington Post, Dr.
Carnevale discussed the importance of the availability of key
program-level information in college decision-making:
This institution-based method for sorting higher
education speaks very little to the main reason most
people go to college: to get a degree that will help
them get a job. In the end, college is a black box. We
hope for the best and write a big check. A career
begins, however, with what a person majored in, not so
much by where that person got the degree. What you earn
depends much more on what you take in college than
where you go. From a career perspective, college is
more a market in program majors than a market in
institutions.\15\
---------------------------------------------------------------------------
\15\Anthony P Carnevale, House Republicans got this right: Colleges
should tell students how much bang their buck will buy, The Washington
Post (Dec. 8, 2017), www.washingtonpost.com/news/grade-point/wp/2017/
12/08/house-republicans-promise-major-advances-in-college-transparency/
?utm_term=.41a90b305cb0.
Dr. Carnevale also notes in a separate article in the Wall
Street Journal that the PROSPER Act ``turns higher education
into a market for programs and it breaks away the institution
as the unit of value. . . . [I]t will create transparency and
give people choices; we're going to have the information
necessary to make markets work.''\16\
---------------------------------------------------------------------------
\16\Douglas Belkin & Melissa Korn, Higher Education Act Proposal
Primes Fight Over Future of Colleges, The Wall Street Journal (Dec. 2,
2017), www.wsj.com/amp/articles/higher-education-act-proposal-primes-
fight-over-future-of-colleges-1512216000.
---------------------------------------------------------------------------
Since there are a number of federal agencies in addition to
the U.S. Department of Education (Department) that collect and
publicly report information on colleges and universities,
including the U.S. Department of Veterans Affairs, the U.S.
Department of Defense, and the Consumer Financial Protection
Bureau, students often receive duplicative and confusing
information. To avoid this, H.R. 4508 directs the Secretary to
coordinate with these other federal agencies to ensure all
published higher education data is consistent with information
available on the College Dashboard.
As discussed above, the number and percentage of
nontraditional, or contemporary, students has increased and now
comprise a majority of all students.\17\ This trend is expected
to continue in the coming years, with NCES estimating students
older than 25 to increase by 18 percent between 2014 and
2025.\18\ Despite their growing majority, these contemporary
students are largely ignored in the current higher education
data collection efforts. Under current law, the Secretary is
required to publish only information regarding first-time
students who attend classes full-time, generally leaving out
those students who are older, have families or jobs, attend
school part-time, or have previous college experience. To
ensure the federal government provides a more complete picture
of the higher education landscape, the PROSPER Act requires the
Commissioner of Education Statistics (Commissioner) to ensure
completion data is reflective of all students, both traditional
and contemporary. H.R. 4508 also requires the publishing of
information on the cost per credit hour, or the credit hour
equivalency, on the College Dashboard, so students who attend
school less than full-time are able to have a cost estimate
more relevant to them.
---------------------------------------------------------------------------
\17\Digest of Education Statistics, 2015, Table 303.40: Total fall
enrollment in degree-granting postsecondary institutions, by attendance
status, sex, and age: Selected years, 1970 through 2025, National
Center for Education Statistics (2016), https://nces.ed.gov/programs/
digest/d15/tables/dt15_303.40.asp.
\18\National Center for Education Statistics Fast Facts:
Enrollment, National Center for Education Statistics, nces.ed.gov/
fastfacts/display.asp?id=98.
---------------------------------------------------------------------------
The Committee appreciates the efforts made by the higher
education community to create more comprehensive completion
metrics that include a larger percentage of the current
college-going population. Particularly, the Committee believes
the Student Achievement Measure\19\ and the efforts of the
Committee on Measures for Student Success provide a good
foundation for the Commissioner's development of more robust
completion metrics that also include transfer students. The
Committee expects the Commissioner to consult these entities
and others during the development of the metrics.
---------------------------------------------------------------------------
\19\Student Achievement Measure, Student Achievement Measure,
www.studentachievementmeasure.org/.
---------------------------------------------------------------------------
H.R. 4508 directs the Secretary, in consultation with
relevant stakeholders such as parents, students, institutions,
and privacy experts, to review all data reporting requirements
on institutions; determine which requirements are duplicative
or unnecessary; and examine the best way to collect data from
institutions to reduce burden and capture the data necessary to
help ensure compliance, accountability, and transparency. As a
part of the review, the Secretary is required to explore the
feasibility of working with the National Student Clearinghouse
to establish a third-party method to collect and produce
aggregated institution and program-level information without
compromising student data privacy and data security. The
Secretary will then be required to implement the changes
necessary to improve the data reporting process and submit a
report to the authorizing congressional committees on any
legislative changes needed to make improvements. The Committee
believes reviewing institutional data reporting requirements
and conducting a feasibility study of institutions working with
the National Student Clearinghouse to improve reporting and
reduce burden will lead to better information for students and
families without sacrificing student privacy.
Reform of the Office of Federal Student Aid
Federal bureaucracies inundated by administrative hurdles
prevent government from best serving the people. Recognizing
this trend, Congress designated the Department's Office of
Federal Student Aid (FSA) as a performance-based organization
(PBO), with the goal of improving service for students,
integrating systems, providing greater flexibility in
management and program delivery, and reducing administrative
costs.\20\ In exchange for its PBO designation, Congress
expected FSA to operate with greater efficiency and better
customer services. These two objectives are even more vital
with the end of the Federal Family Education Loan (FFEL)
program, a federal guarantee lending program run in cooperation
with the private marketplace, and the wholesale shift to direct
lending. There are over 33 million individuals with Direct
Loans holding over $1 trillion of debt as of the fourth quarter
of 2017.\21\ Unfortunately, the Department's Inspector General
and the Government Accountability Office (GAO) have repeatedly
shown FSA is unable to deliver results. There are numerous
management challenges plaguing FSA, including an ineffective
and inefficient procurement process, insufficient oversight of
contractors, improper security of sensitive information, and an
inability to act as an equal partner with stakeholders.\22\
---------------------------------------------------------------------------
\20\H. Rept. 105-481--HIGHER EDUCATION AMENDMENTS OF 1998,
Congress.gov, www.congress.gov/congressional-report/105th-congress/
house-report/481/1.
\21\Federal Student Loan Portfolio, Federal Student Aid, (Dec. 12,
2017), studentaid.ed.gov/sa/about/data-center/student/portfolio.
\22\Committee Raises Concerns with FSA Management, Single Servicer
Proposal, Committee on Education and the Workforce (Aug. 8 2016),
edworkforce.house.gov/news/documentsingle.aspx?DocumentID=400962.
---------------------------------------------------------------------------
The Committee recognizes the need to strengthen oversight
protections at FSA to promote better service and accountability
for students, institutions, and taxpayers. The PROSPER Act
improves oversight of FSA by requiring more transparent
organizational goal-setting and including stakeholders
throughout the goal-setting process. The bill establishes an
FSA advisory board to oversee the activities at FSA and guide
better decision-making. The advisory board will approve FSA's
performance plan, make recommendations on providing bonuses for
senior executives, and help adopt best practices for loan
management employed in the private sector. No longer can FSA
conduct unnecessarily long program-reviews, as the agency will
have strict deadlines to meet. Further, FSA must be more
transparent about the performance of the federal student loan
system. H.R. 4508 requires FSA to publicly and electronically
report certain aggregate statistics in order to help Congress,
researchers, and the public evaluate the health of the federal
student loan system. Collectively, these provisions will work
together to reverse FSA's failures in internal operations,
contract procurement and management, IT security, and customer
service.
Addressing sexual assault
Sexual assault on campus must be taken seriously by
colleges and universities, and they must actively work to
prevent and respond when incidents occur. The PROSPER Act puts
students first when it comes to sexual assault. It provides
institutions with appropriate guidelines and requirements
necessary to help students when an assault happens and to
prevent assaults in the first place.
H.R. 4508 requires institutions to survey students at least
once every three years to measure campus attitudes towards
sexual assault and gauge the general climate of the campus
regarding the institution's treatment of sexual assault on
campus. The bill directs institutions of higher education to
use the results of the survey to improve institutions'
abilities to prevent and respond to incidents of sexual
assault. The Committee believes campus climate surveys can be a
helpful tool in assessing a specific campus environment and can
lead to the development of appropriate awareness and education
programs for the community. During a September 10, 2015,
hearing Dr. Penny Rue, Vice President for Campus Life at Wake
Forest University, noted the importance of climate surveys:
Campus Climate surveys are another growing practice,
and these are used to assess students' perceptions of
and experiences with sexual assault or other forms of
gender-based violence on campus. Since such a small
number of sexual assaults are actually reported, it is
important for each campus to understand, through an
anonymous survey, the number of students who have
experienced a sexual assault, sexual harassment,
stalking or other forms of gender-based violence, as
well as providing data on attitudes that can be used to
shape prevention efforts. Through these campus climate
surveys [campuses will] be able to both understand the
scope of the problem on their campus and to measure
over time the effectiveness of their prevention
efforts. These surveys are designed to provide an
institution-specific picture that, in turn, enables
leaders to coordinate with the campus community to
strengthen prevention efforts in strategic and
proactive ways.\23\
---------------------------------------------------------------------------
\23\Testimony of Dr. Penny Rue Before the Committee on Education
and the Workforce Subcommittee on Higher Education and Workforce
Training, Hearing on Preventing and Responding to Sexual Assault on
College Campuses, September 10, 2015, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=399274.
To aid institutions in their responsibility to survey
students, H.R. 4508 requires the Secretary to develop sample
surveys an institution may use but prohibits the Secretary from
regulating on the contents of the survey to ensure institutions
can design surveys to best meet their needs. The Committee
believes surveys should be designed with the goal of informing
and improving campus prevention and response efforts and
anonymous responses should be guaranteed. These surveys should
not be designed to serve as a consumer information tool or an
enforcement mechanism, as this may compromise their ultimate
usefulness as a tool for institutional improvement by
discouraging candidness and honest responses. At the same 2015
hearing, Dr. Rue went on to discuss the importance of
---------------------------------------------------------------------------
institutional autonomy in survey design:
What is less helpful is the notion that one
standardized survey would be imposed on all
institutions by the federal government. This approach
does not accommodate the wide array of campus
environments or recognize the diligent work of the
institutional community to address their own unique
needs and challenges. Each institution should have the
autonomy to develop the best survey for their campuses
and their students. American higher education is
fortunate to have a wide range of colleges and
universities that range from four-year residential, to
community colleges to primarily on-line colleges. One
mandatory campus climate survey will not meet the needs
of each college or university, and the regulatory
burden will siphon resources away from prevention and
support initiatives.\24\
---------------------------------------------------------------------------
\24\Id.
When victims of sexual assault come forward, they often are
in distress and traumatized. They may want to officially report
the incident to a Title IX coordinator or the police, or they
may merely be looking for counseling, emotional support, or
other available resources to help them cope. The Committee
believes access to qualified counselors to support students who
are victims of sexual assault is critically important.
Therefore, the PROSPER Act requires colleges and universities
to provide victims access to an advisor who can provide
confidential support to the greatest extent allowable by law
and answers to their questions. Additionally, H.R. 4508
requires institutions to develop a one-page form to guide and
assist students who may be victims of sexual assault and to
make the form widely available to students.
H.R. 4508 requires the Secretary, in consultation with the
U.S. Attorney General, to develop best practices for memoranda
of understanding (MOU) between institutions and local law
enforcement and to disseminate the best practices on the
Department's website. The Committee recognizes MOUs between
institutions and local law enforcement can provide clarity
regarding coordination and separation of responsibilities
between the institution and law enforcement, as well as address
jurisdictional matters. However, while the practice should be
encouraged, it should not be mandated, as institutions may be
unable to reach an agreement with the local authorities that is
in the best interests of their students and the campus
community.
Title II--Expanding Access to In-Demand Apprenticeships
Repeal of teacher programs
H.R. 4508 repeals the Teacher Quality Partnership (TQP)
Grant program and programs authorized under part B of Title II
as well as related reporting requirements. The TQP Grant was
repealed in H.R. 5, the Student Success Act (114th Congress),
making H.R. 4508 consistent with previous legislation passed by
the Committee and the House. Additionally, the Obama and the
Trump administrations' budget requests since FY 2011 have
proposed consolidating or eliminating the TQP program to
support additional flexibility for state and local efforts to
recruit and retain effective teachers through the Elementary
and Secondary Education Act (ESEA).\25\ The programs authorized
under part B of Title II have never received funding.
Therefore, the Committee believes these programs should be
removed from the statute as no previous Congress--regardless of
which party controlled the majority--has funded their creation.
The Committee agrees with the previous and current
administrations' budget requests to support flexibility and
believes the flexibility provided to states and school
districts through the Supporting Effective Instruction program
authorized under Title II of the ESEA is preferable to the
existing system of small programs that cater to certain
constituencies and have very limited benefit for classroom
instruction. Further, the Committee supports reduced reporting
burdens for states and institutions of higher education. As
H.R. 4508 no longer includes teacher-specific program funding,
it is not appropriate to continue federal reporting
requirements specific to teacher preparation programs.
---------------------------------------------------------------------------
\25\Innovation and Instructional Teams Fiscal Year 2011 Budget
Request, Department of Education (2011), Page F-72. https://
www2.ed.gov/about/overview/budget/budget11/justifications/f-iit.pdf.
---------------------------------------------------------------------------
Apprenticeship grants
Since the last reauthorization of the HEA, the country has
faced the worst economic recession in a generation,
transforming the American workforce and the postsecondary
education landscape. As previously noted, the American
workforce faces a shortage of 6 million skilled workers.\26\
Colleges and universities need to provide students the
opportunity to gain the skills necessary to succeed in the
workforce. The Committee believes an important way these skills
can be successfully developed is through earn-and-learn
programs, including apprenticeship programs, created in
collaboration with business and industry. Apprenticeships are a
general workforce development strategy to prepare individuals
in a specific occupation using a combination of structured on-
the-job learning and related, often classroom-based,
instruction. They provide important earn-and-learn
opportunities, while also preparing students for good-paying
careers.
---------------------------------------------------------------------------
\26\Job Openings and Labor Turnover Summary, U.S. Bureau of Labor
Statistics (2017), https://www.bls.gov/news.release/jolts.nr0.htm.
---------------------------------------------------------------------------
Based on the most recent National Household Education
Survey of adult education, an estimated 2.1 million Americans
participated in apprenticeships in 2006. Nevertheless, more
needs to be done to address our nation's critical workforce
needs. To help address those needs, the bill revamps and moves
an existing competitive grant program for community colleges
(previously referred to as the Strengthening Institutions
Program in Title III) to Title II of the law in order to focus
on increasing the availability of earn-and-learn programs for
students.
H.R. 4508 expands student access to, and participation in,
industry-led earn-and-learn programs, including
apprenticeships, that lead to high-wage, high-skill, and high-
demand careers by supporting partnerships between businesses
and colleges. Under the legislation, grants are made available
to eligible partnerships consisting of at least one business
and one institution of higher education to develop or expand
earn-and-learn programs of not more than two years in length
that lead to a recognized postsecondary credential and require
a 50 percent match from non-federal funds.
At an October 24, 2017, hearing, Dr. Scott Ralls, President
of Northern Virginia Community College, described the
importance of work-based learning programs:
Sometimes we have programs that aren't formal
apprenticeship, but they are very much important
because of that work-based learning. Because for many
students coming out of our colleges and universities
now, many of them, unlike when I was a student, they
didn't work in high school. . . . So apprenticeship
becomes even more important, I believe, for today's
students. . . .\27\
---------------------------------------------------------------------------
\27\Testimony of Scott Ralls Before the Committee on Education and
the Workforce Subcommittee on Higher Education and Workforce
Development and the Committee on Homeland Security Subcommittee on
Cybersecurity and Infrastructure Protection, Joint Hearing on Public-
Private Solutions to Educating a Cyber Workforce, October 25, 2017,
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=402045.
The Committee believes federal efforts to promote
apprenticeships should provide employees and job creators with
flexibility to innovate and develop high quality earn-and-learn
programs without overreach from Washington. Mr. Mike Bennett,
Vice President of Cianbro, echoed this sentiment at a July 26,
2017, hearing, saying, ``The programs must be industry and
market driven and flexible in structure, scheduling, and
duration to address the changes with an industry's means,
methods, and technology.''\28\ According to analysis by the
American Action Forum, the PROSPER Act will ``lead to at least
733 apprenticeship programs and 87,000 new apprentices.''\29\
The PROSPER Act provides eligible partnerships the needed
flexibility to design programs that will meet the needs of
their students as well as the workforce.
---------------------------------------------------------------------------
\28\Testimony of Mike Bennett Before the Committee on Education and
the Workforce Subcommittee on Higher Education and Workforce
Development., Hearing on Expanding Options for Employers and Workers
Through Earn-and-Learn Opportunities, July 26, 2017, https://
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=401905.
\29\Ben Gitis, Chad Miller, Rahee Jung, Earn and Learn: A Review of
a Proposal to Expand Apprenticeships in High-Growth Industries,
American Action Forum (Feb. 5, 2018), https://
www.americanactionforum.org/research/earn-learn-review-proposal-expand-
apprenticeships-high-growth-industries.
---------------------------------------------------------------------------
Title III--Institutional Aid
The PROSPER Act reauthorizes all minority-serving
institution (MSI) programs, the Tribally Controlled Colleges
and Universities (TCCU) program, and the Historically Black
Colleges and Universities (HBCUs) program. According to the
2017 Eligibility Matrix released by the Department, there are
nearly 700 institutions that are eligible to receive
institutional aid, including HBCUs and TCCUs.\30\ Of these
eligible institutions, there are more than 400 institutions
that are participating in Title III programs.\31\
---------------------------------------------------------------------------
\30\Eligible Institutions for Title III and Title V Programs,
Department of Education (2017), https://www2.ed.gov/about/offices/list/
ope/idues/eligibility.html#el-inst.
\31\Id.
---------------------------------------------------------------------------
The Committee believes it is important for these
institutions to have the ability to choose what works best for
their students and not be limited in the applicable services
they can provide. The PROSPER Act makes meaningful reforms to
the institutional aid programs by expanding the allowable uses
to include activities such as establishment of community
outreach programs, development of career-specific programs,
dual or concurrent enrollment, and pay for success initiatives.
The bill also explicitly allows institutions to award
scholarships from their endowments and promotes institutional
self-sustainability by requiring eligible institutions to
develop a comprehensive plan that will result in institutions
needing less institutional aid to offer the same services to
their students. The Committee also believes that while these
programs are intended to provide support to institutions and
students, the goal is for these institutions to not be
dependent on this funding.
In addition, the PROSPER Act establishes a requirement for
participating schools to maintain a completion rate of at least
25 percent in order to be eligible for additional federal
dollars. The institutional aid program for MSIs was created in
the Higher Education Amendments of 1986 with the intention to
bolster institutions with high minority and low-income student
concentrations. In subsequent reauthorizations, Congress added
various allowable uses to provide services that increased
academic success. These institutions have now been getting a
special subset of money with the goal of helping them serve a
particular student population. The PROSPER Act's inclusion of a
minimum graduation threshold signals to institutions that the
federal government and taxpayers want to ensure the funds are
helping to further the completion goal. The Committee believes
this rate should be met by most institutions currently
receiving funds as the rate will include more than just first-
time, full-time students. A 2017 American Council on Education
report conducted a study using data from the National Student
Clearinghouse (NSC)--beyond what is collected by the federal
government--to examine howstudents who began attending an MSI
in 2007 progressed through higher education.\32\ The report found that
completion rates for MSIs were higher than the federal graduation rate
suggests. In fact, when it comes to students who completed within 150
percent and 200 percent of normal time for completion, the study found
the following:
---------------------------------------------------------------------------
\32\Lorelle L. Espinosa, Jonathan M. Turk, and Morgan Taylor,
Pulling Back the Curtain: Enrollment and Outcomes at Minority Serving
Institutions, American Council on Education (2017), http://
www.acenet.edu/news-room/Pages/Pulling-Back-the-Curtain-Enrollment-and-
Outcomes-at-Minority-Serving-Institutions.aspx.
---------------------------------------------------------------------------
The total completion rate for public four-year
HBCUs was 43 percent, which increased to nearly 62 percent for
students who enrolled exclusively full time, compared to a
federal graduation rate of 34.1 percent.
The completion rate was 66.7 percent when looking
at exclusively full-time students at private four-year HBCUs,
compared to a federal graduation rate of 43.9 percent.
The completion rate for exclusively full-time
students at public four-year Predominantly Black Institutions
was nearly 52 percent compared to a federal graduation rate of
16.6 percent. The total completion rate for all students was
34.1 percent.
The completion rate for exclusively full-time
students at public two-year Hispanic-Serving Institutions
(HSIs) was 40.3 percent, compared to the federal graduation
rate of 25.5 percent. The total completion rate for public
four-year HSIs was approximately 50 percent and was 74.1
percent for exclusively full-time students, compared to a
federal graduation rate of 42.7 percent.
The completion rate for exclusively full-time
students at public four-year Asian American and Native American
Pacific Islander-Serving Institutions was nearly 88 percent
according to NSC data, compared to a federal graduation rate of
66.2 percent.
Under the PROSPER Act, the completion rate is calculated by
counting a student as completed if the student graduates within
150 percent normal time for completion or if the student
transferred from a program that provided substantial
preparation within 150 percent normal time for completion.
Because the PROSPER Act proposes to collect student data beyond
first-time, full-time, the completion rate will include
students who are full-time and less than full-time. The
Committee believes it is important to push institutions to
graduate their students and equip them for the workforce. When
students complete their education, they are more likely to
obtain a higher paying job and pay back their loans. A 25
percent completion rate requirement coupled with the ability to
develop career specific programs will accomplish this goal
without negatively impacting institutions or students.
Title IV--Student Assistance
The federal government's decades long pursuit to make
college affordable for all Americans has given rise to a
convoluted maze of federal student aid programs, including
several grant programs, six different types of student loans,
nine repayment plans, eight forgiveness programs, and 32
deferment and forbearance options. Ms. JoEllen Soucier, a
financial aid administrator for the Houston Community College
System, testified she has ``seen the complexity of the student
aid process increase greatly over the past 25 years.'' She went
on to say, ``[T]he entire process from application to repayment
has become an intricate puzzle that only a seasoned
professional can navigate and understand.''\33\
---------------------------------------------------------------------------
\33\Testimony of JoEllen Soucier Before the Committee on Education
and the Workforce Subcommittee on Higher Education and Workforce
Development, Hearing on Improving Federal Student Aid to Better Meet
the Needs of Students, March 21, 2017, https://edworkforce.house.gov/
uploadedfiles/soucier_written_testimony.pdf.
---------------------------------------------------------------------------
Unfortunately, this layered approach to education financing
has resulted in unprecedented levels of student debt and has
created more burden than opportunity for students. The proof is
in the numbers. Average debt per borrower has increased 38
percent since 2008, and families collectively have taken on
more than a trillion dollars in federal student loans.\34\ At
the same time, the federal investment has never been higher.
Over the last 10 years, the total volume of federal grants has
risen 102 percent and total volume of federal loans has
increased 31 percent. In the 2016-17 academic year, the federal
government spent more than $123 billion in grants and loans
authorized by the HEA.\35\
---------------------------------------------------------------------------
\34\Federal Student Loan Portfolio Summary, Federal Student Aid
(2017), https://studentaid.ed.gov/sites/default/files/fsawg/datacenter/
library/PortfolioSummary.xls (last visited Jan 10, 2018).
\35\Trends in Student Aid 2017, CollegeBoard (Oct. 2017), available
at https://trends.collegeboard.org/sites/default/files/2017-trends-
student-aid_0.pdf.
---------------------------------------------------------------------------
The complicated system of federal aid programs is difficult
to navigate for many families and has contributed to the rising
cost of college, making a postsecondary education a risky
gamble for students. The Teacher Education Assistance for
College and Higher Education (TEACH) Grants illustrate this
point. These grants are given to students who agree to teach
for four years at a school or educational service agency that
serves students from low-income families. If a graduate who
received a TEACH grant does not complete the service
obligation, the grant converts to a loan. Graduates cited the
lack of transparency and paperwork burden as some of the
reasons for their grant to loan conversions. The Committee
believes that the terms of federal financial aid should be
clear and comprehensible. In its FY 2018 budget, the Department
estimated that 65 percent of TEACH grants will convert to
loans.\36\ The program's high grant to loan conversion rate
leaves too many students worse off, which is why these grants
are eliminated in H.R. 4508.
---------------------------------------------------------------------------
\36\U.S. Department of Education TEACH Grants Fiscal Year 2018
Budget Proposal, Department of Education (2017), https://www2.ed.gov/
about/overview/budget/budget18/justifications/p-teach.pdf.
---------------------------------------------------------------------------
At a November 13, 2013, hearing, Dr. Sandy Baum, Senior
Fellow at the Urban Institute, testified about the qualities
that would encompass an effective student aid system:
Effective student aid requires more than dollars. The
aid program must be designed so that that the students
who have the most potential to benefit from the program
know about it, understand it, can predict and count on
its benefits, and can access it without undue
difficulty.\37\
---------------------------------------------------------------------------
\37\Testimony of Sandy Baum Before the Committee on Education and
the Workforce Subcommittee on Higher Education and Workforce
Development, Hearing on Keeping College Within Reach: Simplifying
Federal Student Aid, November 13, 2013, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=348909.
The Committee agrees that it should not take a degree to
figure out how to pay for a degree and that the simplification
of the federal student aid process will be beneficial to all
students. The PROSPER Act's federal student aid simplification
to a one grant, one loan, one work-study framework promotes
access, affordability, and completion. A simplified federal
student aid framework is the key to unlocking a thriving future
for many generations. Ms. Kristin Conklin, a founding partner
of HCM Strategists, summarized the urgency and importance of
simplifying federal student aid at a March 21, 2017, hearing,
saying, ``A simplified federal financial aid system is part of
the solution for a nation that needs many more skilled
graduates, a stronger middle class, and more opportunity.''\38\
---------------------------------------------------------------------------
Ms. Conklin ended her testimony by saying:
\38\Testimony of Kristen Conklin, Hearing on Improving Federal
Student Aid to Better Meet the Needs of Students, supra note 33.
---------------------------------------------------------------------------
Federal financial aid is the foundation for college
affordability in America. Decisions today to simplify
the federal financial aid programs and remove the
barriers to on-time completion can pave the way for
more states, communities, institutions and employers to
build upon this federal foundation and expand
affordable pathways for students.\39\
\39\Id.
---------------------------------------------------------------------------
The Committee wants to transform this vision into reality.
Students deserve a streamlined system that is easy to
understand so they can responsibly finance their college
careers, and contemporary students need a 21st century student
aid system that accommodates their lifestyles and chosen
courses of study. The reforms in H.R. 4508 that create a one
grant, one loan, one work-study framework improve America's
postsecondary education system for students, parents,
institutions, and taxpayers.
Pell Grants
The Pell Grant program is the cornerstone of federal
student aid for low-income students and the single largest
source of postsecondary student aid. In Fiscal Year 2017, the
program provided approximately $28.5 billion to approximately
7.5 million students.\40\ The Committee recognizes the
important role this program plays in providing access to
postsecondary education for low-income students. However, in
recent years, the program has experienced tremendous growth in
cost, almost tripling from $12.8 billion\41\ in 2006 to $35.7
billion in 2010.\42\ The rapid growth of the program was caused
by the recent economic downturn that led to increased student
enrollment, eligibility expansions, and an increase in the
maximum award. Program costs have since dropped to $28.5
billion in FY 2017,\43\ leading to a current cumulative surplus
of $8.6 billion.\44\ But without reforms, that surplus will
diminish as program costs are projected to rise, leading to a
projected annual shortfall beginning in FY 2020.\45\ Therefore
H.R. 4508 reauthorizes the program through Fiscal Year 2024,
with key reforms to ensure the program remains available to
future generations.
---------------------------------------------------------------------------
\40\Pell Grant Program, Discretionary: Cumulative Shortfall/
Surplus--CBO's June 2017 Baseline, Congressional Budget Office (June
2017), https://www.cbo.gov/sites/default/files/recurringdata/51304-
2017-06-pellgrant.pdf.
\41\Student Financial Assistance Fiscal Year 2014 Budget Request,
Department of Education, https://www2.ed.gov/about/overview/budget/
budget14/justifications/q-sfa.pdf.
\42\Student Financial Assistance Fiscal Year 2018 Budget Request,
Department of Education, https://www2.ed.gov/about/overview/budget/
budget18/justifications/o-sfa.pdf
\43\Congressional Budget Office, supra note 40.
\44\Id.
\45\Calculation based on CBO June 2017 baseline and current level
appropriations going forward.
---------------------------------------------------------------------------
The Committee believes that not extending the annual
inflationary increases to the mandatory portion of the Pell
Grant will help put the program on a sustainable path for the
future. Additionally, H.R. 4508 requires the Secretary to
report annually to the authorizing committees on the cost of
the Pell Grant program to better ensure Congress is aware of
any growth in cost of the program in a timely manner.
Adding to the cost of the Pell Grant program is the fact
the majority of full-time students do not graduate on time.
Today, the traditional ``four-year'' degree is much more often
a five- or even a six-year degree for a majority of students.
This means that rather than completing on time using only four
years' worth of a Pell Grant, these students are also using the
grant for a fifth and sixth year of undergraduate education,
which costs the federal government approximately an additional
$12,000 per student eligible for the maximum award. This not
only increases the cost of the program, it is also a
significant cost to the student in terms of additional tuition
and lost wages. A recent report from Complete College America,
``Four-Year Myth,''\46\ shows the cost to a typical student
taking an extra year to complete:
---------------------------------------------------------------------------
\46\Four-Year Myth: Make College More Affordable. Restoring the
Promise of Graduating on Time, Complete College America (2014), https:/
/completecollege.org/wp-content/uploads/2017/05/4-Year-Myth.pdf.
---------------------------------------------------------------------------
At public two-year institutions, five percent of
full-time students pursuing associate degrees graduate on time.
An extra year costs $15,933 in tuition and fees, room and
board, books and supplies, transportation and other expenses.
In addition, students give up approximately $35,000 in lost
wages by graduating late. The total cost: $50,933.
At public four-year institutions, 19 percent (non-
flagship) and 36 percent (flagship/very high research) of full-
time students graduate on time. An extra year costs $22,826 in
tuition and fees, room and board, books and supplies,
transportation and other expenses. In addition, students give
up $45,327 in lost wages by graduating late. The total cost:
$68,153.\47\
---------------------------------------------------------------------------
\47\Id.
---------------------------------------------------------------------------
Current federal student aid policies are also doing little
to encourage students to complete on time. Typically, in order
to graduate in two or four years, a student must take at least
15 credits per semester or 30 credits over the year; however, a
student is only required to take 12 credits a semester to be
considered full-time and receive the maximum Pell Grant award
for which they are eligible. A student taking only 12 credits a
semester and 24 credits a year will be unable to graduate on
time. According to Complete College America, ``Each extra
semester comes with a cost, and the longer it takes, the more
life gets in the way--decreasing the likelihood students will
ever earn their degree. . . . The result: students graduate
late, if at all, and rack up unnecessary time and debt in the
process.''\48\
---------------------------------------------------------------------------
\48\15 to Finish, Complete College America, https://
completecollege.org/strategy/15-to-finish/.
---------------------------------------------------------------------------
H.R. 4508 encourages Pell-eligible students to complete on-
time and with less debt by offering a $300 bonus per award year
to students enrolling in a greater than full-time workload that
will lead to the completion of 30 or more credits or the
equivalent coursework for the award year. For the typical
student, this will require taking at least 15 credits per
semester to be eligible to receive the Pell Grant Bonus. The
bonus amount will be in addition to the student's scheduled
award, and all students receiving a Pell Grant that are
enrolled in the required amount of coursework will be eligible
to receive the bonus. However, a student cannot receive any
portion of the bonus in payment periods for which the student
is also receiving Pell Grant funds through the year-round Pell
Grant authority.
The Pell Grant Bonus is based on a proposal from the
National Association of Student Financial Aid Administrators
(NASFAA) called ``Super Pell.'' NASFAA's report, ``Reimagining
Financial Aid to Improve Student Access and Outcomes,''
discusses the benefits of a bonus amount of Pell Grant dollars
for on-time enrollment:
An immediate financial incentive in the form of extra
Pell dollars (i.e., Super Pell), on top of a full-time
Pell Grant scheduled award for enrollments greater than
12 credit hours, would have the effect of encouraging
students to complete their academic programs more
quickly. Depending on how it is structured, Super Pell
could also lead to fewer lifetime Pell dollars being
spent on these students because students would receive
a small amount of extra Pell funds for each term at
greater than 12 hours, rather than an extra term or
year of a full scheduled award. Pell-eligible students
who complete a baccalaureate degree within four years
rather than longer would also likely incur less student
loan debt. Even for the minority of schools that charge
higher amounts for greater workloads, the marginal
higher costs due to enrollment greater than 12 credits
are certainly less than the costs of additional terms
of enrollment, not to mention the opportunity costs of
enrollment in college.\49\
---------------------------------------------------------------------------
\49\Reimagining Financial Aid to Improve Student Access and
Outcomes, NASFAA (2013), https://www.nasfaa.org/uploads/documents/
ektron/67439aeb-419d-4e9c-9035-4278d0bbed61/
d19119911e864c39abb555e99f130d122.pdf.
The Committee believes on-time completion is a key
component of reducing the cost of college for students and the
cost of the Pell Grant program for taxpayers. While the PROSPER
Act makes bold reforms to help improve completion, the
Committee also urges colleges and universities to take action
to facilitate on-time completion for their students.
TRIO
The PROSPER Act reauthorizes the TRIO programs that were
created to serve students from disadvantaged backgrounds by
providing services to increase postsecondary access and
completion. These programs currently serve more than 800,000
students with more than 2,500 programs operating across every
state.\50\ While these programs seem to serve a large
population, in actuality millions of students go unserved by
these programs. For fall 2017, the National Center for
Education Statistics reported total enrollment numbers of 50.7
million students in public elementary and secondary schools and
20.4 million students in institutions of higher education,\51\
meaning approximately only 1 percent of all students are
currently being served by a TRIO program.
---------------------------------------------------------------------------
\50\TRIO Projects by State: FY 2016, Council for Opportunity in
Education (March 13, 2017), http://www.coenet.org/files/bulletin_board-
TRIO Projects_by_State_FY_2016_031317.pdf.
\51\National Center for Education Statistics Fast Facts: Back to
School Statistics, National Center for Education Statistics, https://
nces.ed.gov/fastfacts/display.asp?id=372.
---------------------------------------------------------------------------
The data is clear there are many more students in need of
support services than are currently being served by TRIO.
Therefore, the Committee believes there should be a set aside
of no less than 10 percent of TRIO funds to allow new
applicants that have not previously received a TRIO grant to
meet the needs of low-income students currently underserved in
postsecondary education and to address the needs of low-income
students in our secondary schools. Setting aside funds will
ensure new applicants have the opportunity to take advantage of
the services offered by these programs. If there are not enough
qualified new applicants to utilize the set aside, the funds
would be returned to the general TRIO fund for additional
future awards.
The Committee also believes entities and partnerships
seeking to participate in the TRIO programs should provide a 20
percent match as a condition of participation. Throughout the
HEA, matching requirements are placed on entities seeking to
participate in certain grant programs as a way to promote
institutional accountability and sustainability. This matching
requirement allows cash or in-kind donations with the ability
to accrue such matches over the duration of the grant period.
The value of in-kind donations must be calculated according to
applicable Office of Management and Budget circulars and
Department General Administrative Regulations, must be
verifiable from the records kept by the grantee, and must show
how the value of such contribution was derived. This match will
allow the programs to expand their reach to serve more students
seeking services.
These programs should also ensure students are prepared to
complete college-level coursework. Therefore, the PROSPER Act
amends the required services for the Talent Search and Upward
Bound program to mandate that grantees offer remedial education
services where necessary. Addressing remedial education should
be a priority of the Department, as too many students graduate
from secondary school unprepared for postsecondary-level work.
A 2016 NCES report concluded that among students beginning
postsecondary education in 2003-04, ``68 percent of those
starting at public 2-year institutions and 40 percent of those
starting at public 4-year institutions took at least one
remedial course during their enrollment between 2003 and
2009.''\52\
---------------------------------------------------------------------------
\52\Remedial Coursetaking at U.S. Public 2-and 4-Year Institutions:
Scope, Experience, and Outcomes: Statistical Analysis Report, National
Center for Education Statistics Institute of Education Sciences,
Department of Education (2016), https://nces.ed.gov/pubs2016/
2016405.pdf.
---------------------------------------------------------------------------
In addition, the PROSPER Act requires the Secretary to set
aside no less than 10 percent of funds for innovative measures
promoting postsecondary access and completion for low-income
students. The program requires applicants to use evidence-based
approaches that increase access to and completion of
postsecondary education. These grants will be awarded in a
three-tier approach, and grantees will independently evaluate
their programs and submit an annual report to the Secretary.
The Committee believes the ability for any institution to use
evidence-based approaches to increase access and completion of
postsecondary education will best serve the student because
these new methods will be tested and proven to have positive
outcomes. Instead of restricting institutions on how they can
meet student needs, this allows for innovative ways to tailor
services to students who most need assistance.
Gaining Early Awareness and Readiness for Undergraduate Program
The Gaining Early Awareness and Readiness for Undergraduate
Program (GEAR UP) program provides six- or seven-year grants to
assist low-income students in completing secondary school and
accessing postsecondary education. The PROSPER Act reforms and
emphasizes the importance of college readiness throughout the
program.
The Committee believes any new funding in the program
should be administered through a new competition to solicit new
grantees. The PROSPER Act clarifies new competitions should be
conducted by requiring the Secretary to make new awards to
eligible entities. The Committee also believes there should be
one grant per state, which has been the policy for the program
since 1999. The PROSPER Act codifies the long standing policy
to prohibit states from receiving multiple awards.
In addition, the PROSPER Act provides greater flexibility
to grantees to structure their scholarship programs based on
certain eligibility criteria. The Committee supports giving
states the ability to structure a scholarship program, with the
approval of the Secretary, to award funds to students based on
criteria such as financial need and satisfactory academic
progress.
Loan discharges
The HEA permits student loan borrowers to submit a closed
school, false certification, or unpaid refund discharge
application to the Secretary. If a discharge application is
approved by the Secretary, a borrower's loan is cancelled and
the borrower is no longer obligated to make payments on the
loan. A borrower can also receive reimbursement on amounts paid
voluntarily or through enforced collection on the loan pending
approval by the Secretary.
The PROSPER Act seeks to clarify the application process
for closed school, false certification, or unpaid refund
discharge situations. The bill requires individual borrowers to
actively submit an application and does not allow the Secretary
to approve a discharge application for borrowers who do not
submit an application. The bill also codifies current
regulations regarding the discharge process.
Further, the Committee believes it should be the
responsibility of the borrower to submit an application for a
discharge regardless of the type of discharge. Because the
borrower knowingly enters into a contractual agreement to pay
back the loan amount, the borrower should knowingly request to
have the loan terminated.
Federal Work-Study
Only 13 percent of Americans agree college graduates in
this country are well prepared for success in the
workplace.\53\ One of the few successful programs in the HEA is
the Federal Work-Study (FWS) program, which has been shown to
increase graduation rates and job placement among participants,
particularly low-income students.\54\ Building on the success
of the program, it is time to update and expand the FWS program
to reflect today's economic needs and the challenges that
students and workers currently face.
---------------------------------------------------------------------------
\53\ Brandon Busteed, America's ``No Confidence'' Vote on College
Grads' Work Readiness, GALLUP News (April 24, 2015), http://
news.gallup.com/opinion/gallup/182867/america-no-confidence-vote-
college-grads-work-readiness.aspx.
\54\Judith Scott-Clayton & Veronica Minaya, Should student
employment be subsidized? Conditional counterfactuals and the outcomes
of work-study participation, 52 Economics of Education Review 1-18
(2016), http://www.sciencedirect.com/science/article/pii/
S0272775715000825.
---------------------------------------------------------------------------
Since the last reauthorization of the HEA in 2008, our
country weathered the worst economic recession in a generation,
forever transforming the American workforce and the
postsecondary education landscape. Mr. Kevin Gilligan, Chairman
and Chief Executive Officer at Capella Education Company,
explained the gap between the higher education system and the
workforce at a hearing on February 7, 2017:
While our current system of higher education is the
envy of the world, it is struggling to keep up with the
pace of change in our evolving economy. Simply put, it
creates too much debt and isn't creating a workforce
with the skills required to drive economic growth and
lift up the many American's struggling for upward
mobility.\55\
---------------------------------------------------------------------------
\55\Kevin Gilligan Testimony Before the Committee on Education and
the Workforce, Hearing on Challenges and Opportunities in Higher
Education, February 7, 2017, https://edworkforce.house.gov/calendar/
eventsingle.aspx?EventID=401221.
The FWS program has the potential to solve the problem
highlighted by Mr. Gilligan, but federal requirements in the
program stifle interaction between industry and college
campuses and set up a generation of Americans for failure. For
instance, today's participants in FWS can only work part-time;
no more than 25 percent of an institution's FWS dollars can
flow to students working in the private-sector; and the federal
match for FWS students working in private-sector companies is
25 to 40 percent lower than other sectors of employment. These
workforce development restrictions in FWS have real world
consequences for our nation. At an October 24, 2017, hearing,
Mr. David Jarvis, Security and Chief Information Officer lead
at the IBM Institute for Business Value, described how these
restrictions harm IBM's ability to prepare students for
---------------------------------------------------------------------------
cybersecurity careers. Mr. Jarvis stated:
Eliminating the [FWS] restrictions would increase the
flexibility of students and institutions of higher
education to use their federal work-study allocations
for part- and full-time off-campus cooperative
education and other work-study purposes. Rather than
forcing work-study grants to be used for dining hall
jobs, students could get internships that were relevant
to their majors and provided critical work experience
and skills. IBM urges Congress to return flexibility to
students and higher education institutions in their use
of work-study funds.\56\
---------------------------------------------------------------------------
\56\ David Jarvis Testimony, Joint Hearing on Public-Private
Solutions to Educating a Cyber Workforce, supra note 27.
This weak link between FWS and careers is not the only
design downfall of the program. The FWS funding distribution
formula rewards high-tuition colleges and universities with
historic participation in the program at the expense of other
institutions that serve low-income students with high-need.
Groups as wide-ranging as Achieving the Dream, Business
Roundtable, Center for Law and Social Policy, National Skills
Coalition, and the U.S. Chamber of Commerce have called upon
lawmakers to address these funding and career-orientation
issues.\57\ The FWS program has the potential to help millions
of students pay for college while learning employability
skills, and reinvigorate America's workforce in the 21st
century.
---------------------------------------------------------------------------
\57\ Letter from Achieving the Dream, Business Roundtable, Council
for Adult and Experiential Learning, Center for Law and Social Policy,
Committee for Economic Development, Jobs for the Future, National
Association of System Heads, National Skills Coalition, New America,
Skills for America's Future, State Higher Education Executive,
Officers' Association, U.S. Chamber of Commerce, & Young Invincible to
The Honorable Lamar Alexander & The Honorable Patty Murray (April 26,
2017), https://na-production.s3.amazonaws.com/documents/
FWS_Letter_to_Senate_HELP_FINAL_TJm79TC.pdf.
---------------------------------------------------------------------------
To refocus the FWS program on career goals of students,
H.R. 4508 clarifies the purpose of the program and sets a
definition of ``work-based learning.'' In doing so, the
Committee recognizes all education is career education.
Students pursue postsecondary education to develop the
necessary skills to find a job. This is the objective held in
common by both the Ivy League student pursuing a psychology
degree and the student at the local community college learning
how to repair automobiles. Both individuals provide invaluable
contributions to society, and both students deserve equal
support under the FWS program.
Colleges and universities should provide their students
both on and off-campus opportunities to develop the skills
necessary to succeed in the workforce. The PROSPER Act makes
the FWS program work for students and opens the door for robust
private sector employment by eliminating the arbitrary 25
percent cap, applying the same federal share to all types of
employment, and doubling the authorization for the job location
and development program. This critical program allows
institutions to use these resources to locate and develop work-
based learning jobs for students. The Committee considered and
adopted an amendment offered by Rep. Ron Estes (R-KS) to
include apprenticeship opportunities as eligible positions
allowable under the program. Together, these policy changes
will put students on track to establish successful careers and
drive upward mobility for all Americans.
Enhanced funding and a targeted funding distribution
formula supplement the renewed emphasis on workforce
development in FWS. The PROSPER Act increases the authorization
of FWS to more than $1.7 billion to account for not
reauthorizing the Federal Supplemental Educational Opportunity
Grant program as part of the PROSPER Act's move to a simplified
system. The Committee addresses the poorly-targeted funding
formula by winding down the base-guarantee over five years and
revising the fair-share formula to include student need and
Pell Grant dollars. The updated fair share formula no longer
rewards high-tuition institutions, and instead awards limited
federal resources to colleges and universities that enroll the
lowest-income students. To continue with the PROSPER Act's goal
to improve student completion, the bill further rewards
``improved institutions'' or schools with strong or improved
Pell Grant recipient completion rates compared to peer
institutions. This funding reservation provides a positive
incentive for schools to improve student completion, and the
competition to be an improved institution will lead to better
services for low-income students. These formula changes will
allocate money to institutions equitably and will allow
institutions to tailor their FWS program to the unique needs of
students, the school, and local workforce.
H.R. 4508 equips institutions with the tools and resources
needed to engage students and businesses in forging a healthy
economy. This revitalized FWS program will help low-income
students gain access to high-quality work opportunities and set
our students and nation up for long-term success.
Borrower defense
Borrower defense to repayment is a process that allows a
student loan borrower to submit a defense to repayment
application to the Secretary, so they can be relieved of
further payments on their student loan, reimbursed of payments
already made, or both. The Secretary reviews the applications
and has the authority to determine the type and amount of
relief, if any. A defense to repayment claim differs from a
closed school, false certification, or unpaid refund discharge
application by providing an avenue for borrowers to seek relief
due to institutional misconduct, including acts or omissions by
an institution. According to a report released by the
Department's Office of Inspector General before the closure of
Corinthian Colleges in April 2015, there were five defense to
repayment applications submitted since the 1995 final
regulations went into effect.\58\ After Corinthian announced
the closure of all of its institutions, borrowers submitted
over 95,000 applications.\59\
---------------------------------------------------------------------------
\58\Federal Student Aid's Borrower Defense to Repayment Loan
Discharge Process, U.S. Department of Education Office of Inspector
General (Dec. 8, 2017).
\59\Id.
---------------------------------------------------------------------------
Due to the drastic increase in the number of applications
submitted, the Secretary established a taskforce with the
mission to create an efficient internal process for reviewing
defense to repayment applications. The Secretary also
established a negotiated rulemaking committee and created a
final rule in 2016. While this rule was meant to benefit the
student, it caused significant concerns due to its overreach,
and it cost the taxpayers an estimated more than $16 billion to
implement. With these concerns and high expense, as well as a
change in the administration, the 2016 final rule was delayed,
and another negotiated rulemaking committee was established.
The Committee believes borrowers should have clarity about
their student loan rights and these rights shouldn't be left to
the whims of different administrations. The Committee believes
all borrowers should be responsible for articulating why they
should be granted relief and provide evidence in support of
such relief. The PROSPER Act clarifies the borrower defense
process by requiring individual borrowers to submit an
application for relief. To help borrowers, the bill allows for
defense to repayment applications to be submitted if there is a
non-default, favorable contested judgement in a court, breach
of contract, or substantial misrepresentation by an
institution. To eliminate confusion, the borrower and the
institution must be informed at every step of the process. The
Secretary is required to administer a mandatory administrative
forbearance once applications are received, and the Secretary
is required to process all applications in a timely manner and
submit a report to Congress outlining the internal processes.
The Committee has concluded borrowers should not be required to
make payments of any kind on their loan while awaiting a final
decision from the Secretary on their application, and the
institution against which the borrower is submitting a claim
should be informed throughout the process. Both parties should
have the ability to submit new evidence for a reconsideration,
but the Committee believes that this process should only happen
once. If the borrower is dissatisfied with the final result,
the borrower is able to seek a review under the Administrative
Procedure Act of 1965.
Student loans
The federal student loan system consists solely of the
Direct Loan (DL) program, as the FFEL program expired in 2010
and the campus-based Perkins Loan program expired in September
2017. In the DL program, the U.S. Department of the Treasury
(the Treasury) provides the capital to disburse loans. The
Department transfers the money from the Treasury to schools on
behalf of the student, and borrowers repay obligations to the
Department via contractors. The following programs are included
under the DL umbrella: subsidized undergraduate Stafford Loan,
unsubsidized undergraduate Stafford Loan, unsubsidized graduate
Stafford Loan, graduate PLUS loan, and parent PLUS loan. Each
program has different eligibility requirements and different
interest rates. In 2015-16, the federal government disbursed
over $74.2 billion in loans to undergraduate students and
almost $21 billion to graduate and parent borrowers.\60\
---------------------------------------------------------------------------
\60\CollegeBoard, supra note 35.
---------------------------------------------------------------------------
In addition to the many types of loans offered above, the
federal government also overwhelms borrowers with nine
different repayment plans and dozens of deferment and
forbearance options. The different plans include a standard
repayment over 10 years, graduated repayment, extended
repayment, income contingent repayment, original income-based
repayment (IBR), IBR for New Borrowers, Pay As You Earn (PAYE)
repayment, Revised Pay As You Earn, and alternative repayment.
Each option contains complicated terms and conditions. The
sheer number of plans leads to confusion for borrowers.
Furthermore, the plans are proving to be ineffective at
helping borrowers avoid default. This sad truth was confirmed
by Mr. Jason Delisle, Resident Fellow at the American
Enterprise Institute (AEI), at a May 24, 2017, hearing. He
stated:
Despite the ever-expanding benefits, loan types, and
repayment options, delinquency and default rates
suggest that the current system is not working. Over 8
million people are in default on their federal student
loans today, a number that has continued to grow year
after year, even though the country is now many years
into an economic expansion with low rates of
unemployment.\61\
\61\Testimony of Jason Delisle Before the Committee on Education
and the Workforce Subcommittee on Higher Education and Workforce
Development, Hearing on Empowering Students and Families to Make
Informed Decisions on Higher Education, May 24, 2017, https://
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=401652.
---------------------------------------------------------------------------
The income-driven repayment plans offer different terms for
loan forgiveness for different sets of borrowers, picking
winners and losers depending on when the student took out the
loan. For example, original IBR caps monthly payments at 15
percent of discretionary income, forgives the remaining balance
after 25 years of repayment, and is available to those who
borrowed prior to July 1, 2014. New IBR caps monthly payments
at 10 percent of discretionary income, forgives the remaining
balance after 20 years of repayment, and is available to new
borrowers on or after July 1, 2014. PAYE has the same repayment
and forgiveness terms of new IBR but is available to new
borrowers on or after October 1, 2007, who also received a loan
on or after October 1, 2011. The Committee believes all future
borrowers should receive the same deal from the government, and
should not be punished or rewarded simply because of when they
chose to attend college.
After hearing from students, parents, and other
stakeholders about the confusion caused by the complex federal
financial aid system, the Committee entered into this HEA
reform effort with the goal of simplifying and improving the
student loan system while continuing to promote student access
to and completion of postsecondary education. Taxpayers have
financed over $1 trillion in student loans, and it is critical
to evaluate why the government treats students differently and
how the program can be improved to benefit all students.
The PROSPER Act sets forth a new ONE Loan structure with
reasonable and easily understandable terms and conditions to
support future borrowers while continuing to honor the federal
government's agreement with millions of college graduates
working to repay their current loans. ONE Loans will eliminate
borrower confusion, provide an affordable path to repayment,
and help millions of Americans recognize their dream of earning
a postsecondary degree and finding a good-paying career.
A. Direct Loans
To provide for the orderly transition to the ONE Loan
program, the PROSPER Act does not terminate the Department's
authority to make loans under the DL program until the end of
FY 2024. Beginning July 1, 2019, all new borrowers will borrow
ONE Loans, but borrowers with outstanding undergraduate debt
prior to July 1, 2019, may continue undergraduate borrowing
through the DL program through FY 2024. Likewise, individuals
with outstanding graduate debt and parents who have already
borrowed on behalf of a dependent child by July 1, 2019, may
continue to borrow through the DL program through FY 2024. The
terms and conditions of these loans, including all the
repayment plans and forgiveness options, will continue to exist
for that loan beyond FY 2024. The Committee recognizes that
consumers entered college with certain assumptions, and by
grandfathering in existing borrowers, we allow consumers to
complete their schooling without reneging on our promise.
B. Perkins Loans
The Perkins Loan program expired at the end of FY 2017.
There has been bipartisan support from Congress and the last
two administrations to let the program end, giving students and
institutions ample time to make other financial
arrangements.\62\ Since 2015, all Perkins Loan institutions
have been required to inform students the program would expire
in 2017. Perkins Loans account for less than 1 percent of all
new federal loans disbursed each year.\63\ Despite a low
participation rate, Perkins Loans create unnecessary confusion
for borrowers during repayment because the bills are due at a
different time and are owed to a different entity than other
federal loans. Moreover, Perkins Loans do not necessarily offer
better terms for borrowers. Interest rates for Perkins Loans
have been higher than Direct Loans over the last few years and,
unlike Direct Loans, Perkins Loans are not eligible for income-
based repayment plans. Perkins Loans benefit only certain
colleges and universities, and only certain students at those
schools receive the aid. The end of the Perkins Loan program
was the first crucial step towards moving to a unified ONE Loan
structure.
---------------------------------------------------------------------------
\62\Student Aid Overview: Fiscal Year 2017 Budget Request,
Department of Education (2016), https://www2.ed.gov/about/overview/
budget/budget17/justifications/n-sao.pdf and Section II. D. Student
Financial Assistance, Fiscal Year 2008 Budget Summary, Department of
Education (2007), https://www2.ed.gov/about/overview/budget/budget08/
summary/edlite-section2d.html.
\63\Fiscal Year 2018 Budget Summary and Background Information,
Department of Education, https://www2.ed.gov/about/overview/budget/
budget18/summary/18summary.pdf.
---------------------------------------------------------------------------
The Committee sought to help those institutions operating
Perkins Loans programs achieve a successful programmatic
conclusion. The PROSPER Act allows institutions to schedule
Perkins Loan program close-out audits in conjunction with their
annual financial and compliance audit. Additionally, the bill
codifies institutions' option to assign loans to the Treasury
on an individual basis. Most importantly, H.R. 4508 clarifies
institutions will receive any interest collected on Perkins
Loans that exist because the institution made a loan to itself
that the college has subsequently repaid in full. These policy
changes reflect the Committee's good-faith effort to provide
for the orderly wind down of the Perkins Loan program. To
accommodate the end of the Perkins Loans, the ONE Loan program
also incorporates a few policy advantages from the Perkins Loan
program.
C. ONE Loan structure
The ONE Loan program operates similar to the DL program.
Both are direct lending programs where the Treasury provides
the capital to disburse loans and the Department transfers the
money from the Treasury to schools on behalf of the student.
The authority, funding, selection of institutions, and the
program participation agreements are similar, and in many cases
identical, to the procedures established in the DL program. It
is not the Committee's intent to disrupt the current direct
lending system. The new ONE Loan system offers one unsubsidized
loan per category of borrower: an undergraduate loan, a
graduate loan, and a parent loan. The ONE Loan program is
effective for all new borrowers as of July 1, 2019. The loans
are all unsubsidized, meaning interest accrues while the
borrower is in school, to limit the federal government's role
in contributing to higher college costs. Independent analyses
have found subsidized loans increase tuition by about 60 cents
on the dollar.\64\
---------------------------------------------------------------------------
\64\David O. Lucca, Taylor Nadauld, & Karen Shen, Credit Supply and
the Rise in College Tuition: Evidence from the Expansion in Federal
Student Aid Programs, Federal Reserve Bank of New York Staff Reports
(July 2015, Rev. Feb. 2017), https://www.newyorkfed.org/medialibrary/
media/research/staff_reports/sr733.pdf.
---------------------------------------------------------------------------
Dramatically simplifying the loan system will assist
students and families in deciding the best route to financing
their education. During the March 21, 2017, hearing, Ms.
Conklin praised the idea of a ONE Loan system, saying ``This
one loan system would eliminate much borrower confusion, thus
helping students focus on managing college costs, repaying with
interest based on actual income, and considering examples of
average incomes for their careers when making appropriate
borrowing choices.''\65\
---------------------------------------------------------------------------
\65\Testimony of Kristen Conklin, Hearing on Improving Federal
Student Aid to Better Meet the Needs of Students, supra note 33.
---------------------------------------------------------------------------
One critical difference between the DL program and ONE
Loans, which will support borrowers in managing college costs,
is the disbursement of the loan. Currently, federal student aid
first covers the recipient's upfront cost of tuition and fees,
and then the remaining balance is disbursed to the student in
one or two large payments. The PROSPER Act revolutionizes aid
disbursal for both grants and loans by mandating aid
distribution on a monthly or weekly basis, like a paycheck, at
the discretion of the institution. Large upfront balances
mislead students and make planning for expenses difficult.
Disbursing aid in regular installments is cost effective, helps
students manage their limited dollars while enrolled in school,
and instills the value of treating college as a job, where
regular attendance is expected and rewarded. By providing
institutions with discretion here, the institution, rather than
the federal government, can ensure the disbursements are made
in a manner that best meets the needs of a student. For
example, an institution may provide a bigger disbursement up
front to accommodate increased costs that students may incur at
the beginning of the semester, such as textbook costs or course
fees.
D. ONE Loan limits
Aid like a paycheck is not the only way the PROSPER Act
encourages responsible borrowing habits. Current law provides
for annual and aggregate loan limits for undergraduate
students. Congress enacted these limits to prevent excessive
student loan debt and protect taxpayers against default. As the
Committee considered the HEA reform package, there was
significant debate on what loan limits should be for ONE Loans.
Dr. Matt Chingos, Senior Fellow at the Urban Institute,
testified at a March 21, 2017, hearing that the ``federal loan
program should focus on undergraduate students and rein in
excessive federal borrowing by graduate students.''\66\ College
costs continue to rise, and as such, students and families rely
more and more on student loans to assist them in pursuing their
education. The Committee believes the federal government is
contributing to unmanageable debt burdens, particularly at the
parent and graduate level. The federal government has a
responsibility to balance the competing objectives of access
and affordability, and the reforms in H.R. 4508 strike this
balance.
---------------------------------------------------------------------------
\66\Testimony of Matt Chingos, Hearing on Improving Federal Student
Aid to Better Meet the Needs of Students, supra note 33.
---------------------------------------------------------------------------
The PROSPER Act's ONE Loan program continues the HEA's
historical mission of encouraging access to postsecondary
education. H.R. 4508 increases the undergraduate loan annual
limit for both dependent and independent students by $2,000, an
amount equal to the average undergraduate Perkins Loan. The
aggregate undergraduate ONE Loan limit reflects approximately
four-and-a-half years of undergraduate borrowing to ensure
timely completion. The Committee believes all institutions
should be treated equally after the termination of the Perkins
Loan program, which is why the PROSPER Act raises statutory
undergraduate loan limits by the average Perkins Loan amount.
All students will have the financial tools available to
complete their first and second years and continue through
graduation.
At the same time, the PROSPER Act attempts to tackle the
problem of ballooning graduate school debt. Today, just 12
percent of borrowers (those graduate students who owe $60,000
or more in federal loans) account for 50 percent of outstanding
student loan debt.\67\ In academic year 2013-14 alone, graduate
students took out 34 percent of federal student loans despite
making up only 14 percent of students.\68\ Unlike undergraduate
students who are attending school to earn a credential to
improve their ability to get their foot in the door of the
workforce, graduate students already have earned an
undergraduate degree.
---------------------------------------------------------------------------
\67\CollegeBoard, supra note 35.
\68\Beth Akers & Matthew M. Chingos, Game of Loans (2016), p. 16.
---------------------------------------------------------------------------
The Committee believes the ONE Loan offers generous terms
that will continue to allow students to access the vast
majority of programs. Those who may be attending more expensive
programs have the opportunity to establish earnings and credit
histories before borrowing. Graduate students attending
expensive programs will receive a return on investment and will
be able to fund their education through the private
marketplace. Evidence shows the Grad PLUS program replaced
private loan borrowing dollar-for-dollar, suggesting there is
an existing market the government does not need to fill.\69\
Graduate students had limits on their loans prior to 2007, and
ONE Loan will return to that construct. ONE Loan graduate
borrowers have statutorily defined annual and aggregate loan
limits for the first time since 2007 in order to limit over-
borrowing and contain the rising cost of college. The annual
graduate loan limit for ONE Loans is the sum of the current
graduate Stafford Loan limit and the maximum graduate Perkins
Loan, with higher limits for certain health and medicine
programs. Borrowing through the ONE Loan program is capped at
$150,000 for most students, an amount still higher than the
limits prior to 2007.
---------------------------------------------------------------------------
\69\Monica Bhole, Why do federal loans crowd out the private
market? Evidence from graduate PLUS loans, Job Market Paper (Oct. 16,
2016), http://www.economics.illinois.edu/seminars/documents/Monica.Pdf.
---------------------------------------------------------------------------
Similarly, ONE Parent Loans will limit borrowing at the
annual level to the average parent PLUS loan.\70\ ONE Parent
Loans also have an aggregate cap equivalent to four-and-a-half
times the annual limit. Parents today are able to borrow for
educational and living expenses for their dependent children up
to the cost of attendance. While some parents can afford to
acquire high loan balances, many parents cannot. The PROSPER
Act makes sure these parents do not become saddled with debt
and struggle with their repayment burden. Instead, the PROSPER
Act provides dependent students greater access to aid to
finance their own postsecondary education pursuits. These
changes will provide the higher education system enough
flexibility to encompass the borrowing habits of today's
borrowers, while restricting institutions from abusing easy
access to credit and continuing to increase their college costs
to the detriment of students and taxpayers.
---------------------------------------------------------------------------
\70\2011-12 National Postsecondary Student Aid Study (NPSAS:12),
National Center for Education Statistics, U.S. Department of Education,
Computation by NCES PowerStats on 3/3/2016.
---------------------------------------------------------------------------
The Committee recognizes current law is inflexible and does
not provide institutions the authority to set policies in the
best interest of their students. Yet, the HEA still holds
institutions accountable for the repayment behavior of their
students. Mr. Michael Bennett, the Associate Vice President of
Financial Assistant Services at St. Petersburg College,
testified at a hearing on March 17, 2015, saying:
Most are not aware that financial aid administrators
are currently prohibited from requiring additional
counseling and/or limiting borrowing for federal loans.
Loans are considered to be ``entitlement'' dollars and
a school is not able to require additional counseling,
even if their records show that the student could be in
serious financial trouble. . . . We must provide
financial literacy, additional counseling, and the
availability of personalized, comprehensive financial
education services.\71\
\71\Michael Bennett Testimony Before the Committee on Education and
the Workforce Subcommittee on Higher Education and Workforce Training,
Hearing on Strengthening America's Higher Education System, March 17,
2015, https://edworkforce.house.gov/calendar/
eventsingle.aspx?EventID=398531.
---------------------------------------------------------------------------
The PROSPER Act addresses the problems identified by Mr.
Bennett by revamping entrance and exit counseling, sharing the
responsibility for borrowing habits with institutions, and
holding individual programs at institutions to a base loan
repayment rate standard instead of the ineffective
institutional-level cohort default rate. H.R. 4508 provides
financial aid administrators the flexibility to lower loan
limits for categories of borrowers to help students limit their
borrowing to only the amount needed to finance their education
expenses. The specific categories of borrowers include by
academic program, enrollment intensity, credential level, and
programmatic year. Importantly, the bill retains the authority
of institutions to increase loan limits up to the statutory cap
on a case-by-case basis, which will protect those borrowers
with special circumstances and exceptional need. The Committee
believes it is the responsibility of institutions to consider
the best financial interest of their students and strongly
encourages all colleges and universities to use this new
flexible loan limit authority to curtail over borrowing.
Endowed with this new ability, all institutions now have the
tools needed to set students up for long-term financial
success.
E. Interest rates and loan fees
College affordability for all Americans is the inspiration
behind the reforms contained in the PROSPER Act. This is why
the Committee maintained the market-driven interest rate policy
set by the Bipartisan Student Loan Certainty Act of 2013. The
law removed Washington politicians from the business of setting
student loan interest rates, and instead interest rates are
based on the 10-year Treasury Note plus a certain percentage
depending on the loan. This responsible solution has served the
best interests of students, parents, and taxpayers, and the
bill continues this policy: undergraduate ONE Loan borrowers'
interest rates are equivalent to the undergraduate Stafford
rate; graduate ONE Loan borrowers' interest rates are
equivalent to the graduate Stafford rate; and ONE Parent Loans
will have an interest rate equivalent to PLUS loans.
The PROSPER Act reforms also are designed to ensure the
federal government is clear on its agreement with borrowers who
are taking out a loan. Under the DL program, borrowers are
charged hidden fees, known as origination fees, ranging from 1
percent to 4 percent. In practice, the origination fee means
borrowers receive less aid than requested and have a higher
effective interest rate than advertised. The Committee believes
this costly and hidden fee unnecessarily increases the cost of
college for millions of students and families. Therefore, the
PROSPER Act eliminates origination fees for all ONE Loans.
Removing origination fees will make the process of financing
education more transparent and put more money into the
students' account.
F. ONE Loan repayment and treatment of loan forgiveness
As noted earlier, DL borrowers have many repayment plans
available to them, with five of the plans based on a borrower's
income. Thousands of borrowers struggle to meet their monthly
payment obligations despite the generous terms available. Dr.
Beth Akers, Senior Fellow at the Manhattan Institute, who
testified at a hearing on February 7, 2017, informed the
Committee why this may be case:
Many people are surprised to learn that our federal
student loan program has a robust system of safety nets
that protects borrowers from unaffordable student
loans. . . . The lack of knowledge about these safety
nets likely stems from the fact that there isn't a
single income-driven repayment plan, but rather a set
of programs, each with different eligibility
requirements and benefits.\72\
\72\Testimony of Beth Akers, Hearing on Challenges and
Opportunities in Higher Education, supra note 55.
---------------------------------------------------------------------------
The Committee, noting the recent uptick of enrollments in
the various income-based repayment plans, agrees the deluge of
repayment options needlessly complicates the repayment
process.\73\ To simplify repayment and make student loan
payments more affordable while still protecting taxpayers, the
ONE Loan program offers student borrowers two options to repay
their loans: a 10-year standard plan and a single IBR plan. The
PROSPER Act adopts the policy goal and general structure of
Rep. Drew Ferguson's (R-GA) bill, H.R. 4372, the Help Students
Repay Act. All ONE Parent Loan borrowers must pay according to
the 10-year standard plan. The IBR plan requires borrowers to
pay 15 percent of their discretionary income a month or $25,
whichever is higher. The mandatory minimum monthly payment
keeps borrowers engaged and actively in repayment, which helps
borrowers pay down their balance and avoid default. Individuals
can seek to lower this minimum payment if they are unemployed
or have high medical expenses. Borrowers in the IBR plan are
required to repay an amount to the federal government equal to
the principal balance of the loan plus 10 years' worth of
interest as calculated when entering repayment. This financial
mechanism guarantees borrowers are at least paying back the
principal and the interest they would have paid had their
income allowed them to repay in the 10-year standard plan,
while also safeguarding borrowers from insurmountable accrued
interest if their monthly payments in the IBR plan are less
than the interest accruing each month. The ONE Loan IBR
structure will encourage individuals to make consistent loan
payments and will provide individuals the payment transparency
and certainty needed to plan for other life expenses such as
buying a home or starting a small business.
---------------------------------------------------------------------------
\73\Facts on Student Loan Borrowers, The Student Loan Servicing
Alliance (2017), http://www.slsa.net/wp-content/uploads/2017/09/SLSA-
Fact-Sheet-on-Student-Loan-Borrowers-9-18-17.pdf.
---------------------------------------------------------------------------
Unlike the DL program, which offers loan forgiveness based
on time or occupation, the ONE Loans subsidy is concentrated in
the IBR proposal to cap interest rates at 10 years' worth of
interest. All forgiveness options such as Public Service Loan
Forgiveness (PSLF) for the DL program will continue to apply to
those loans, but those forgiveness options are not applicable
to ONE Loans. The reasons for this policy change are twofold.
First, the loan cancellations are inefficient and poorly
targeted. As Dr. Akers explained to the Committee:
Not only does PSLF deliver subsidies for public
service in an inefficient manner, it also does a poor
job targeting those funds. Studies have shown that most
of the benefits of PSLF will go to workers that have
earned graduate and professional degrees and have the
potential for very high earnings.\74\
---------------------------------------------------------------------------
\74\Testimony of Beth Akers, Hearing on Challenges and
Opportunities in Higher Education, supra note 55.
This point is underscored by the Urban Institute's analysis
of the American Community Survey census data, where it found
most public sector occupations also exist in the private sector
and that there is minimal difference in pay between the two
sectors.\75\ The conclusion reached by the Urban Institute is
that many individuals in the workforce are doing comparable
work for equal pay, but only some borrowers are eligible for
PSLF.\76\ The Committee believes all work is valuable and must
be held in equally high regard. This is why the PROSPER Act
eliminates picking arbitrary winners and gives the same choice
of repayment plans to all borrowers.
---------------------------------------------------------------------------
\75\Erica Blom, Who does the Public Service Loan Forgiveness
program really benefit?, Urban Institute (Oct. 27, 2017), https://
www.urban.org/urban-wire/who-does-public-service-loan-forgiveness-
program-really-benefit.
\76\Id.
---------------------------------------------------------------------------
The second reason why the PROSPER Act does not apply
current forgiveness plans to ONE Loans is due to the
overwhelming cost and the exploitation of the forgiveness
policy by institutions. Dr. Chingos rightfully pointed out that
``[e]liminating PSLF and reducing the generosity of other
forgiveness provisions for future borrowers is not only a
matter of ensuring that subsidies are delivered fairly. It is
also critical to the fiscal sustainability of the student loan
programs.''\77\
---------------------------------------------------------------------------
\77\Testimony of Matt Chingos, Hearing on Improving Federal Student
Aid to Better Meet the Needs of Students, supra note 33.
---------------------------------------------------------------------------
The exploding cost of existing income-driven repayment
plans and forgiveness options cannot be overstated. In fact, a
recent GAO report found the federal government is on track to
forgive at least $108 billion in student debt, a far higher
cost than initially estimated.\78\ Some institutions have
abused the combination of unlimited Grad PLUS lending and
unlimited forgiveness options through IBR and PSLF to increase
costs and have the federal government foot the entire bill of a
student's education. In the case of one institution, the
expected average amount a law school graduate from the
institution will have be forgiven because of current federal
policies is around $158,888.\79\ Total subsidization of
graduate education was never the intent or goal of the federal
loan programs. By designing the ONE Loan IBR plan with an
interest cap, the Committee is acting in the best interest of
students and taxpayers and is committed to giving borrowers
repayment relief so present and future individuals can benefit
from the federal government-lending program.
---------------------------------------------------------------------------
\78\Federal Student Loans: Education Needs to Improve Its Income-
Driven Repayment Plan Budget Estimates, U.S. Government Accountability
Office (November 2016), https://www.gao.gov/assets/690/681064.pdf.
\79\Alexander Holt and Jason Delisle, Georgetown LRAP: In Their Own
Words, New America (Aug. 7, 2013), https://www.newamerica.org/
education-policy/federal-education-budget-project/ed-money-watch/
georgetown-lrap-in-their-own-words/.
---------------------------------------------------------------------------
The Committee believes the PROSPER Act's simplified and
improved ONE Loan system will benefit students and taxpayers by
removing layers of confusion, keeping the policies that work
well, altering the terms that need to work better, and
promoting access to and completion of postsecondary education.
Millions of students work hard to earn a degree to find a job
and provide a successful life for their families. ONE Loans
will help these individuals finance their goals with affordable
repayment terms and will deliver the country a skilled
workforce ready for the challenges of the future.
Credit balances
The Committee believes each student loan borrower should
have the ability to choose the best method of obtaining their
credit balance, and these options should be presented in a
neutral and fair manner. Regardless of the selection by the
borrower, credit balances should be delivered in a timely
fashion, and borrowers should not be subject to a delay in
receiving their credit balances. The inability of a third-party
servicer to proactively send an access device to a student may
penalize the student loan borrower by delaying access to the
funds.
The Committee also believes abusive cardholder fees that
were an element of some student card programs in the past
should be prevented. Notably in 2012, the Federal Deposit
Insurance Corporation entered into settlements with industry
participants based on alleged violations of the Federal Trade
Commission Act related to charging student account holders fees
that were unfair or deceptive.\80\ Also in 2013, a major
industry participant settled a class action lawsuit in which
student plaintiffs claimed that it charged excessive and
inadequately disclosed cardholder fees.\81\
---------------------------------------------------------------------------
\80\FDIC Announces Settlements With Higher One, Inc., New Haven,
Connecticut, and the Bancorp Bank, Wilmington, Delaware for Unfair and
Deceptive Practices, Federal Deposit Insurance Corporation (Aug. 8,
2012), https://www.fdic.gov/news/news/press/2012/pr12092.html.
\81\Michael Stratford, Higher One Nears Settlement, Inside Higher
Ed (Nov. 6, 2013), https://www.insidehighered.com/news/2013/11/06/
higher-one-agrees-15-million-settlement-resolve-charges-over-fees.
---------------------------------------------------------------------------
Need analysis
Historically, the Free Application for Federal Student Aid
(FAFSA) was available on January 1 for the upcoming year, well
after many college application deadlines, and it required
applicants to provide income from the tax return due a few
months later in April. In order for students to take advantage
of the ability to easily transfer their Internal Revenue
Service (IRS) income data onto the FAFSA, they had to wait
until after they filed their tax returns. These timing
inconsistencies may have caused delays in the submission of
FAFSA forms, leaving financial aid administrators little time
to put together aid packages for incoming students. According
to a 2013 report published by the National Association of
Student Financial Aid Administrators:
Under the current structure, delays can cause an
unfavorable chain reaction: a delay in completing the
income tax return can mean a delay in submitting the
FAFSA, which can result in a delay in financial aid
notification--and potentially a reduced amount of
financial aid. This occurs because some forms of
financial aid have a limited pot of funds, which is
distributed on a first-come, first-served basis. Every
college student needs to know where they stand sooner
rather than later, so the student can adjust and
prepare for the costs of college.\82\
---------------------------------------------------------------------------
\82\A Tale of Two Income Years: Comparing Prior-Prior Year and
Prior Year Through Pell Grant Awards, NASFAA (2013), https://
www.nasfaa.org/uploads/documents/ppy_report.pdf.
In order to provide students with earlier aid notifications
and give administrators more time to package and award aid,
stakeholders have called for a change to allow borrowers to
apply for aid using prior-prior year (PPY) data. At a March 17,
2015, hearing the Honorable Mitch Daniels, President of Purdue
University and former Governor of Indiana, testified about the
---------------------------------------------------------------------------
benefits of changing to prior-prior year:
Basing decisions on a prior-prior year (PPY) basis
would enable better alignment of the application
process with existing IRS data. The current system,
which uses the previous year's financial records, is
prone to delays and complications that result from the
routine tax process. Switching to PPY would allow time
for tax forms to be processed, corrected and analyzed
before admissions decisions are made and FAFSA
applications are due. It would be advantageous both in
terms of financial planning and connecting the
application to existing data.\83\
---------------------------------------------------------------------------
\83\Testimony of The Honorable Mitch Daniels, Hearing on
Strengthening America's Higher Education System, supra note 71.
In the 2008 Higher Education Opportunity Act, Congress
provided the Secretary the authority to allow the use of PPY
income. However, the Secretary has only recently begun
utilizing that authority. Starting last year, applicants were
able to complete the FAFSA using PPY income. The Committee
recognizes the benefits of using PPY data to students,
institutions, and taxpayers and is committed to ensuring this
commonsense policy remains in place in future academic years.
Therefore, H.R. 4508 ensures continued allowance for earlier
notification of federal student aid.
H.R. 4508 also updates the maximum income threshold
required to qualify for the simplified version of the FAFSA,
known as the simplified needs test, to be in line with the IRS'
income requirements to file the 1040EZ or 1040A tax form. The
Committee believes this important update to the law will
significantly simplify the application process for more middle-
class families.
Competency-based education
Federal, state, and local budgetary challenges, as well as
skyrocketing college costs, have encouraged institutions of
higher education and students to seek low-cost alternatives to
the traditional higher education model. Different modes of
teaching delivery, such as competency-based education, may help
students learn and graduate more quickly. These innovations in
higher education could benefit both traditional students as
well as the growing population of contemporary students.
Traditionally, regulators and institutions of higher
education used credit hours to measure student progress. This
was an understandable metric when technological and physical
limitations meant ``seat time'' was the best proxy for
learning. Today, however, many experts question the value of
measuring time rather than actual learning gains. Competency-
based models of education reverse the traditional learning
equation, holding learning constant and allowing time to vary.
Such programs define a collection of competencies or skills for
a given field of study; create assessments; and provide
students with course materials, instructional mentors, tutors,
and assessments aligned with the competencies.
Additionally, federal student aid programs have not kept
pace with advances in technology or the latest models of
education. While some institutions of higher education are
pursuing competency-based education programs, current statutory
and regulatory requirements need to be updated to enhance
innovation, allowing for greater expansion of competency-based
education. Most notably, federal student aid is disbursed based
on the traditional ``credit hour'' calculation, which does not
translate to the competency-based education model. Mr.
Gilligan, in his testimony before the Committee, noted the
financial aid challenges this innovative learning model poses:
In some cases, we do not believe that time-based
tools constitute the best measurement of student
progress, especially for the adult, contemporary
student. Direct assessment measures student knowledge
and learning, rather than focusing on seat time and
grades. What matters is knowledge gained, not the
amount of time it took to gain it. This decoupling
allows students to move through their program without
any wasted time or money, but poses complicated
problems for federal financial aid policy.\84\
---------------------------------------------------------------------------
\84\Testimony of Kevin Gilligan, Hearing on Challenges and
Opportunities in Higher Education, supra note 55.
The federal government now disburses over $123 billion in
federal student financial assistance each year,\85\ which
should spur lawmakers to find solutions that encourage
innovation to lower college costs. During a July 9, 2013,
hearing, Mr. Burck Smith, Chief Executive Officer and Founder
of StraighterLine, commenting on what may prevent institutions
from providing less costly degrees, said:
---------------------------------------------------------------------------
\85\CollegeBoard, supra note 35.
---------------------------------------------------------------------------
Despite massive investments in technology, higher
education prices are rising and quality is declining.
In every other industry, technology investments yield
cost savings which translate to lower prices and higher
quality--productivity increases. Why not in higher
education? My conclusion was, and is, that the problem
is an outdated regulatory structure.\86\
---------------------------------------------------------------------------
\86\Testimony of Burck Smith Before the Committee on Education and
the Workforce, Hearing on Keeping College Within Reach: Improving
Higher Education Through Innovation, July 9, 2013, http://
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=341174.
Recognizing the challenges the current credit hour system
poses for competency-based education programs, H.R. 4508
creates a new academic year definition for the purposes of
competency-based education programs based on competencies
rather than credit hours or time. The legislation also allows
for competency-based education programs that use a subscription
model to be treated as term-based for the purpose of
establishing payment periods. Furthermore, the PROSPER Act
expands the definition of an eligible program under Title IV to
include competency-based education programs that have been
evaluated and approved by a recognized accrediting agency. The
Committee believes that updating the current statutory and
regulatory system will help to ensure colleges can pursue low-
cost delivery models.
Short-term programs
H.R. 4508 permits student aid, including Pell Grants, to be
disbursed to students enrolled in short-term programs by
decreasing the minimum length of an eligible program under
Title IV to at least 300 clock hours of instruction, eight
semester hours, or 12 quarter hours, offered during a minimum
of 10 weeks. Allowing for the eligibility of short-term
workforce development programs will help address the workforce
shortage by helping workers afford the crucial skills-based
education and credentials that are in high-demand in today's
job market. Ms. Tamar Jacoby, President and CEO of Opportunity
America, commented on the impact this policy could have, in a
January 2018 report:
There's no silver bullet--no simple legislative fix--
for the skills gaps plaguing industry after industry
and constricting opportunity for workers. But
Washington could make a big dent in the problem by
taking steps to level the financial playing field
between traditional academic higher education and
career-focused technical instruction. . . . [M]ore
balanced federal funding--even a small next step down
the road to more balance--could spur dramatic change
for students and employers, a much-needed, double-
barreled boost for opportunity and economic
competitiveness.\87\
---------------------------------------------------------------------------
\87\Tamar Jacoby, Leveling the Playing Field: Pell Grants for
Workforce Training, This Way Up: New Thinking About Poverty and
Economic Mobility, Opportunity America & AEI (2017), http://
www.aei.org/wp-content/uploads/2018/01/This-Way-Up.pdf.
Dr. Ralls also highlighted short-term programs and
---------------------------------------------------------------------------
expanding apprenticeship opportunities in his testimony:
One of the things that Congress can do is look at . .
. opening up the notion of what certifications mean in
the workplace as a workplace credential, areas like
Pell Grants for short-term certifications that are
meaningful and have rigor--I think can open up more
opportunities for apprenticeship opportunities and for
those kinds of certification programs that we find are
important with apprenticeship.\88\
---------------------------------------------------------------------------
\88\Testimony of Scott Ralls, Joint Hearing on Public-Private
Solutions to Educating a Cyber Workforce, supra note 27.
The Committee believes access to short-term programs will
help students get into the workforce more quickly and with the
skills necessary to meet local economic demands.
New providers of higher education
To continue with the PROSPER Act's goal of ensuring the HEA
is flexible enough for tomorrow's students, H.R. 4508 allows
new providers of higher education, called an ``ineligible
institution or organization,'' to partner with traditional
colleges and universities on a greater scale by relaxing the
current 50 percent limit on institutional partnerships with
ineligible organizations and allowing those organizations to
provide up to 100 percent of a student's educational program in
order to foster innovation and help colleges reduce costs.
Through these partnerships, students will be able to use their
federal student aid to access nontraditional providers of
higher education such as coding bootcamps or education programs
designed by employers. In describing the Educational Quality
through Innovative Partnerships (EQUIP) experimental sites
initiative upon which the provision is partially based, Ms.
Jacoby notes that while the experiment has a ``multitiered
quality control [that] is cumbersome . . . it's a critical
breakthrough--a first crack in the edifice of accreditation
that could lead to more dramatic, far-reaching change in years
ahead.''\89\ The Committee agrees the quality control process
outlined in the EQUIP experimental site is cumbersome as well
as duplicative of the quality assurance process outlined in the
law through accreditation. Therefore, rather than creating a
separate duplicative process for these partnerships, the
PROSPER Act requires accreditors to approve partnerships where
the ineligible institution or organization provides more than
25 percent of the educational program.
---------------------------------------------------------------------------
\89\Tamar Jacoby, supra note 87.
---------------------------------------------------------------------------
Loan repayment rates
Billions of hard-working taxpayer dollars finance
postsecondary education every year. Yet, the accountability
process in effect today is ineffective and outdated. Easy
access to taxpayer-funded student loans has driven up college's
price tag, and institutions are immune to the consequences as
long as enough of their students do not default in massive
numbers. Incentives between students, institutions, and the
federal government should promote educational quality and a
return on investment for all stakeholders. Currently,
eligibility to participate in the federal student aid programs
is conditioned partially on an institution's cohort default
rate.
The Committee believes the current cohort default rate
metric is ineffective and fails to provide real accountability
for federal student aid dollars. Entire institutions rarely
lose eligibility due to low default rates as poorly performing
programs are propped up by better performing programs at the
institution. H.R. 4508 creates a program-level loan repayment
rate (LRR) tied to program eligibility that replaces the
institutional-level cohort default rate. The LRR will move the
eligibility condition to the program-level, so particular
programs that are enabling borrowers to repay their loans will
be allowed to continue participating in the student aid
programs, and those that are not enabling borrowers to repay
would not be eligible. Switching this eligibility mechanism to
a program-level LRR will force institutions to have more skin
in the game in lending because individual programs could lose
eligibility for federal student aid if the program does not
adequately prepare students for a career that will enable them
to repay their federal student loans. It will also require
institutions to be more price-sensitive when setting tuition
for particular programs.
FAFSA simplification
Questions on the FAFSA form range from the net worth of
investments to complicated tax questions, and they are often
difficult for students and families to understand. This
confusion can deter applicants from completing the form,
preventing students from receiving financial aidfor which they
may otherwise have been eligible. While steps have been taken to
simplify the FAFSA through the use of skip logic and reducing the
number of questions families must answer, the Committee believes more
can be done to simplify the user experience.
The move to PPY and the use of the IRS data retrieval tool
(DRT) will strengthen the integrity of federal financial aid
and reduce verification burdens on institutions of higher
education. Before PPY, student aid administrators had limited
time to verify the accuracy of students' income data. As
Michael Bennett discussed in his testimony:
With more completed, and therefore accurate, tax
information, verification burden for both students and
institutions would be dramatically reduced through an
increased use of the IRS Data Retrieval Tool. This
reduced burden will free up more time for financial aid
administrators to spend on counseling students.\90\
\90\Testimony of Michael Bennett, Hearing on Strengthening
America's Higher Education System, supra note 71.
---------------------------------------------------------------------------
The Committee believes the DRT has significantly reduced
the burden of filling out the FAFSA by allowing families to
import their tax information from the IRS, which eliminates
many of the questions students and families struggle to answer.
The implementation of PPY allows more families to immediately
utilize the DRT by eliminating the delay between filing taxes
and the DRT becoming available. The PROSPER Act directs the
Secretary to allow married taxpayers filing separately to use
the DRT as single taxpayers and married taxpayers filing
jointly can currently. The legislation also directs the
Secretary to make every effort to utilize technology to
strengthen the DRT and eliminate the need for students and
families to answer irrelevant questions.
H.R. 4508 requires the Secretary to continue examining ways
to simplify the FAFSA through the DRT and report to Congress
annually on that effort. The Committee encourages the Secretary
to consider redistribution of federal, state, and institutional
aid that may occur through such simplification efforts as well
as any potential limitations of using IRS data sufficient to
calculate need for the determination of state aid. The
Committee additionally encourages the Secretary to consider any
other means of simplification made possible through the use of
PPY data.
The Committee also believes protecting taxpayer and student
privacy is vitally important, and any attempts to misuse
sensitive information through the DRT is concerning. As a
result of previous security breaches first revealed by the IRS
and the Department in March 2017,\91\ the legislation requires
the Secretary to report on the security of the DRT to ensure
the Department protects the personally identifiable information
families entrusts it with each day.
---------------------------------------------------------------------------
\91\Privacy Concerns Force Tool to Remain Offline; Students,
Parents and Borrowers Should Use Other Options to Provide Financial
Data on Applications, Department of Education (March 30, 2017), https:/
/www.ed.gov/news/press-releases/update-internal-revenue-service-irs-
and-federal-student-aid-fsa-statement-irs-data-retrieval-tool-drt.
---------------------------------------------------------------------------
The PROSPER Act requires the Secretary to conduct consumer
testing to ensure the electronic versions of the FAFSA are
easily understandable by students and families. The Committee
appreciates the work done to make the FAFSA more user-friendly
but believes more can be done to ensure the FAFSA is as
understandable as possible. By requiring the Secretary to
conduct consumer testing with current and prospective college
students, family members of such students, and financial aid
application experts, the electronic versions of the FAFSA can
be strengthened for efficiency and design.
One of the main purposes of FAFSA simplification is to make
the form more accessible to students, thereby making a higher
education more attainable. Since the creation of the online
FAFSA in 1997, FAFSA completion time has decreased.\92\
However, this online application is not always easily
accessible. A recent report found 2 million students who would
have been eligible for the Pell Grant did not fill out the
FAFSA in award year 2011-2012. Roughly 23 percent of these
students cited the difficulty of the financial aid form or lack
of information about how to apply as a reason for not
completing the FAFSA.\93\ Another report found 40 percent of
all families with incomes below $25,000 and with school-age
children lack a high speed internet connection at home.\94\
Students with families in this income bracket are likely
eligible for a Pell Grant and the most likely to receive state
and institutional aid, both of which often rely on FAFSA data.
---------------------------------------------------------------------------
\92\The average time it takes to complete a FAFSA was reduced to 33
minutes and 13 seconds for the 2015-16 application cycle. See Free
Application for Federal Student Aid (FAFSA) Overview, PowerPoint
Presentation, General Dynamics Information Technology (2017), p. 4.
\93\Mark Kantrowitz, Leaving Money on the Table, Edvisors Student
Aid Policy Analysis (Jan. 12, 2015), p. 3. https://www.edvisors.com/
media/files/student-aid-policy/20150112-leaving-money-on-the-table.pdf.
\94\http://www.pewresearch.org/fact-tank/2015/04/20/the-numbers-
behind-the-broadband-homework-gap/.
---------------------------------------------------------------------------
The Committee believes barriers to access should be removed
and students should not be precluded from applying for aid
because their families do not have ready access to computers or
Internet. For this reason, H.R. 4508 requires the Secretary to
make the FAFSA available on mobile phones, through a mobile
application, or another technology tool.
Student eligibility
Prior to 2012, student aid eligibility was limited to
students with a high school diploma or equivalent, students who
passed an ability to benefit (ATB) test, or students who had
completed six credit hours or its clock hour equivalent of
postsecondary coursework. To mitigate a funding shortfall in
the Pell Grant program, all eligibility for students without a
high school diploma or equivalent was revoked in 2012. The
Consolidated and Further Continuing Appropriations Act of 2015
partly restored ATB for students who met the previous ATB
requirements and who are enrolled in an eligible career
pathways program. H.R. 4508 eliminates the career pathways
requirement and restores federal student aid eligibility for
students without a high school credential who have been
determined by their institution as having the ability to
benefit from the education provided by the institution upon
satisfactory completion of six credit hours or the equivalent
of postsecondary education.
Removing the current eligible career pathways requirement
will allow more students without high school credentials to
participate in the federal financial aid programs if they have
demonstrated they can handle the rigor of higher education.
Additionally, ATB students made eligible through completing six
credit hours have been shown to be just as successful as high
school graduates. An analysis of the Department's 2006-2007
Experimental Sites Initiative, which allowed students without a
high school diploma who successfully completed six credit hours
to gain access to student aid, found:
The subset of students made eligible by this
experiment even compared favorably to financial aid
recipients with high school diplomas. While the
experimental group of students attempted and completed
slightly fewer credit hours than high school graduates,
they completed a nearly identical percentage of units
attempted and earned a slightly higher grade point
average than aid recipients who had completed high
school.\95\
\95\John B. Horrigan, The numbers behind the broadband `homework
gap', Pew Research Center (April 20, 2015), https://
experimentalsites.ed.gov/exp/archives.html; Analysis of the
Experimental Sites Initiative 2006-07 Award Year.
---------------------------------------------------------------------------
H.R. 4508 also clarifies that students who have completed a
secondary school education in a home school setting (one
treated as a home school or private school under state law or
provided by a school operating as a nonprofit corporation that
offers a program of study determined acceptable for admission
at an institution of higher education) are eligible for federal
student aid under Title IV. With respect to secondary education
provided by a nonprofit corporation, the Committee intends that
accrediting agencies recognized by the Department, not state
higher education agencies or the Secretary, shall make the
determination about which programs of study are deemed
acceptable for admission to postsecondary institutions.
Return to Title IV
Unfortunately, many students never complete their
postsecondary degree. Additionally, borrowers who do not earn a
degree are more likely to default on their loans, leaving
taxpayers to pick up the tab. Dr. Chingos and his colleague at
the Urban Institute, Ms. Kristin Blagg, highlight this problem
in their report, ``Getting Risk Sharing Right,'' noting:
Borrowers who drop out before the end of the term are
less likely to ever earn a degree or credential and
more at risk of defaulting on their loans. The
[Beginning Postsecondary Students Longitudinal Study]:
04/09 data show that, among borrowers who dropped out
before the end of a term, just 14 percent went on to
attain any degree within the following six years. Of
borrowers who dropped out before the end of the term
and who did not earn a degree, 38 percent experienced
federal student loan default by 2009, and just 31
percent of these borrowers either repaid their loans or
were in repayment. In contrast, among those who stopped
out at the end of the term and did not receive a degree
within six years, 22 percent had a default and 50
percent were either in repayment or repaid.\96\
---------------------------------------------------------------------------
\96\Kristin Blagg & Matthew M. Chingos, Getting Risk Sharing Right,
Urban Institute (Dec. 2016), https://www.urban.org/sites/default/files/
publication/86556/getting_risk_sharing_ right_3.pdf.
Currently, through the return to Title IV (R2T4) process,
institutions of higher education are required to return a
portion of federal aid awarded to a student if the student
withdraws before completing 60 percent of a semester or other
payment period. The institution is then able to bill the
student for the returned portion of federal aid. This creates
barriers for the most at-risk students to access future aid and
complete their education. According to Dr. Chingos and Ms.
Blagg, ``This system places a disproportionate burden on low-
income students, who may be unable to clear their debts at the
college and are therefore unable to access their academic
record or reapply for federal aid until all federal debts are
also repaid.''\97\ If a student withdraws after the 60 percent
mark, institutions are allowed to keep the entire semester
worth of federal aid even though the student did not complete
the semester. Furthermore, colleges have acknowledged that the
current R2T4 process is incredibly complex and burdensome,
warranting over 200 pages of federal regulations.\98\
---------------------------------------------------------------------------
\97\Id.
\98\Recalibrating Regulation of Colleges and Universities, Task
Force on Federal Regulation of Higher Education (2015), p. 19, http://
www.acenet.edu/news-room/Documents/Higher-Education-Regulations-Task-
Force-Report.pdf.
H.R 4508, which incorporates the provisions of H.R. 4336,
the College Completion and Success Act, introduced by Rep.
Jason Lewis (R-MN), reforms the R2T4 process, so students do
not earn all of their aid until they actually complete the
semester. When students enroll in a semester but do not
complete, the college will not be able to keep a full semester
worth of taxpayer-supported student aid. Additionally, by
streamlining how colleges calculate the amount of aid earned as
is done in the PROSPER Act, schools will be able to spend less
time and resources on compliance. The legislation also shifts
the burden of repaying unearned aid onto the colleges, giving
them strong incentive to promote student persistence and
success. According to Dr. Chingos and Ms. Blagg, under a system
like this, ``[i]nstitutions are unlikely to recoup all tuition
that was previously paid by federal aid and thus have
strengthened incentives to encourage students to complete each
term for which they are enrolled.''\99\ The PROSPER Act also
credits returned aid to Pell Grants first and then loans, so
the taxpayer investment in higher education is protected when
student completion is not achieved. Students then regain Pell
eligibility for the returned aid, increasing their ability to
return to school and complete a degree. The Committee strongly
believes that colleges must place greater focus on student
completion and have skin in the game when students do not
progress towards a degree. This policy combined with the loan
repayment rate policy offer skin-in-the-game policies that
create incentives for colleges to lower costs and help with
completion. The Committee believes this policy will deter
institutions from passing costs to students in the form of
increased tuition.
---------------------------------------------------------------------------
\99\Kristin Blagg & Matthew M. Chingos, supra note 96.
---------------------------------------------------------------------------
Disclosures and reporting requirements
A. Reporting relief
Reporting requirements can serve as an important tool in
ensuring institutional accountability. However, voluminous and
frequently ambiguous federal requirements have expanded the
cost of compliance and exacerbated the rising costs of
attending postsecondary education.\100\ These requirements have
become excessive, duplicative, costly, and often difficult to
implement. H.R. 4508 repeals or reforms federal requirements
that provide limited usefulness to students, families,
institutions, and policymakers and that lead to increased costs
for students.
---------------------------------------------------------------------------
\100\Every dollar spent on compliance is a dollar not being spent
keeping costs low for students. As far back as 1997, Stanford
University estimated the school spent $29 million on compliance costs.
In 2012, Hartwick College released a report finding the small
institution spent 7 percent of its non-compensation operating budget,
or almost $300,000 annually and 7,200 labor hours, on federal reports
and forms. In 2014, Vanderbilt estimated 11 percent, or $150 million,
of its expenditures went to fulfilling federal mandates. See
Recalibrating Regulation of Colleges and Universities, supra note 98.
---------------------------------------------------------------------------
In the fall of 2013, a bipartisan group of Senators
established a task force of college and university presidents
and chancellors to study federal regulations. In February 2015,
the Task Force on the Federal Regulation of Higher Education
released a report.\101\ The report highlighted the problem with
current reporting requirements:
\101\Task Force on Federal Regulation of Higher Education, supra
note 98.
---------------------------------------------------------------------------
Over time, oversight of higher education by the
Department of Education has expanded and evolved in
ways that undermine the ability of colleges and
universities to serve students and accomplish their
missions. The compliance problem is exacerbated by the
sheer volume of mandates--approximately 2,000 pages of
text--and the reality that the Department of Education
issues official guidance to amend or clarify its rules
at a rate of more than one document per work day. As a
result, colleges and universities find themselves
enmeshed in a jungle of red tape, facing rules that are
often confusing and difficult to comply with. They must
allocate resources to compliance that would be better
applied to student education, safety, and innovation in
instructional delivery. Clearly, a better approach is
needed.\102\
---------------------------------------------------------------------------
\102\Id.
The task force recommended consolidating, streamlining, or
eliminating burdensome and costly regulations, legislation, and
reporting requirements. The report also reviewed and quantified
the impact of the regulations with estimates of the time and
costs associated with each requirement. The group of presidents
and chancellors recommended significant reforms so that current
and future rules are promulgated in a way that considers the
costs and benefits to taxpayers, institutions, and students.
The PROSPER Act includes many of the findings outlined in the
report, including streamlining or eliminating requirements
around copyright infringement policies, fire reports, policies
on missing students, vaccination policies, and voter
registration.
B. Campus sexual assault policies
As stated previously, sexual assault on college campuses is
an important and serious issue. Federal law should achieve the
appropriate balance of supporting victims while ensuring the
accused are treated fairly--all the while remembering campuses
aren't courts of law and are not equipped to be courts.
When an incident of sexual violence leads to an
investigation or a disciplinary process in which a student
could be expelled or otherwise sanctioned for violating
institutional rules, it is particularly important those
involved in the disciplinary process apply fundamental
principles of fairness and equality. In 2011, the Department
imposed a one-size-fits-all standard when it issued a Dear
Colleague Letter providing institutions guidance on their
responsibilities under Title IX.\103\ The guidance instructed
institutions to use a preponderance of the evidence standard
rather than the higher clear and convincing evidence standard
to evaluate sexual harassment or violence complaints in order
to be in compliance with Title IX requirements.\104\ The lower
standard of evidence is seen as unfair and unjust for the
accused by individual rights organization and is inconsistent
with the evidentiary standard that many colleges and
universities have found works best for their campus.
---------------------------------------------------------------------------
\103\Dear Colleague Letter from Russlynn Ali, Assistant Secretary
for Civil Rights, U.S. Department of Education (Apr. 4, 2011), https://
www2.ed.gov/about/offices/list/ocr/letters/colleague-201104.pdf.
\104\Id.
---------------------------------------------------------------------------
At a September 10, 2015, hearing, Mr. Joseph Cohn,
Legislative and Policy Director for the Foundation for
Individual Rights in Education, discussed the importance of a
fair process:
Institutions adjudicating guilt or innocence in
sexual assault cases must do so in a fair and impartial
manner that is reasonably calculated to reach the
truth. This should be self- evident. Indeed, in the
April 4, 2011, ``Dear Colleague'' letter issued by the
Department of Education's Office for Civil Rights
(OCR), the agency acknowledged that ``a school's
investigation and hearing processes cannot be equitable
unless they are impartial.'' Disappointingly, however,
OCR's own rhetoric and actions have been decidedly one-
sided, emphasizing the rights of the complainant while
paying insufficient attention to the rights of the
accused. For example, OCR has mandated that
institutions utilize our judiciary's lowest burden of
proof, the ``preponderance of the evidence'' standard,
despite the absence of any of the fundamental
procedural safeguards found in the civil courts of law
from which that standard comes. Without the basic
procedural protections that courts use (like rules of
evidence, discovery, trained legal advocates, the right
to cross-examine witnesses, and so forth), campus
tribunals are making life-altering findings using a low
evidentiary threshold that amounts to little more than
a hunch that one side is right. This mandate is not
just unfair to the accused--it reduces the accuracy and
reliability of the findings and compromises the
integrity of the system as a whole.\105\
---------------------------------------------------------------------------
\105\Testimony of Joseph Cohn, Hearing on Preventing and Responding
to Sexual Assault on College Campuses, supra note 23.
The Committee recognizes the need for fairness and due
process in campus disciplinary proceedings. Therefore, H.R.
4508 requires all institutional investigations or disciplinary
processes regarding sexual violence to be prompt, impartial,
and fair to both the accuser and the accused. The legislation
also allows an institution to determine the standard of
evidence it deems most appropriate for institutional
disciplinary proceedings involving sexual assault, as long as
it is not arbitrary or capricious and is applied consistently
for all proceedings, and the standard chosen by the institution
must be clearly communicated to students.
In addition, after a sexual assault has occurred,
institutions may receive requests from law enforcement and
prosecutors to delay campus investigations, disciplinary
proceedings, or even issuing a timely warning in order to allow
the local authorities to pursue a criminal investigation or
prosecution relating to a sexual assault. H.R. 4508 gives
institutions clear authority to respect requests from a law
enforcement agency or a prosecutor to delay or suspend
investigations or institutional disciplinary proceedings
regarding campus sexual assault without being penalized for
doing so in order to allow the local authorities to pursue a
criminal investigation or prosecution.
Institutions also face an increasing array of
responsibilities related to education about sexual assault
policies, both for students and employees. For example, Title
IX coordinators, campus police, campus security authorities,
and other groups must be educated on a variety of topics,
including but not limited to prevention and awareness programs
and disciplinary processes. Without clear standards for
evaluating education policies, institutions may be uncertain
about the adequacy of their programs. H.R. 4508 requires the
Secretary to create modules, developed in consultation with
campus experts, local law enforcement, victim advocates, due
process experts, and other experts, to educate officials
conducting sexual assault investigations and disciplinary
proceedings, including how to conduct fair investigations and
proceedings. Under the legislation, the modules will be made
available to colleges and universities and any institution that
chooses to use the modules will be deemed in compliance with
its education obligations.
Rather than rigid federal mandates, the Committee believes
institutions need the flexibility to respond to incidents of
sexual assault in a way that meets the needs of students and
the individual campus when these tragic incidents unfortunately
do occur. A one-size-fits-all approach is simply unfair to
victims, to the accused, and to campus communities. The PROSPER
Act provides strong supports to victims of sexual assault and
protects due process rights while giving institutions the
flexibility they need to help fight sexual assault on campus.
C. Loan Counseling
Current counseling policies for federal student aid
recipients are inadequate. Counseling occurs too late in the
process to guide responsible decisions and too often does not
make a lasting impression about the implications of student
debt. A Young Invincibles survey found over 40 percent of
student aid recipients either did not receive, or at the least
did not remember receiving, federally mandated student loan
counseling.\106\ Furthermore, counseling and financial literacy
requirements exclude parent borrowers and students who receive
only Pell Grants. With default rates on the rise, it is
critical to empower students and families with the data
necessary to make informed decisions about the best way to
finance postsecondary education.
---------------------------------------------------------------------------
\106\Major New Student Borrower Survey Shows Startling Lack of
Consumer Information on Financial Aid, Young Invincibles (Oct. 11,
2012), http://younginvincibles.org/press-releases/major-new-student-
borrower-survey-shows-startling-lack-of-consumer-information-on-
financial-aid/.
---------------------------------------------------------------------------
H.R. 4508 requires timely, consumer-friendly, and
comprehensive information be delivered to all recipients of
Title IV student aid by incorporating many provisions included
in Rep. Brett Guthrie's (R-KY) bill, H.R. 1635, the Empowering
Students Through Enhanced Financial Counseling Act. Under the
PROSPER Act, individuals, including parent borrowers and Pell
Grant recipients, must complete a personalized counseling
session before receiving federal financial assistance each
year. Updated disclosure policies will present students
important information about grants and loans including the
annual percentage rate, total debt balance, repayment plans,
loan forgiveness options, and treatment of the loan while in
deferment or forbearance. Strengthened exit counseling will
inform borrowers of projected monthly payments under standard
and income-based repayment plans based on the borrower's
anticipated salary. Institutions may provide counseling
services directly during an in-person session or through an
online tool created for or by the institution. The institution
may choose to have the students use the consumer-tested online
tool administered by the Department.
The Committee knows providing better information about
loans and the post-college obligations and responsibilities
that come with those loans will help students make wise
borrowing decisions. Student loan debt continues to rise, but
Congress can help curtail instances of harmful over borrowing
with proven counseling interventions. Under the PROSPER Act,
counseling shall include information on any outstanding federal
student loan balance the borrower may have and a notice that
students are not required to accept the full amount of the
federal student loan offered.
Institutions across the country are adopting their own
unique strategies to combat over borrowing. Indiana University
demonstrates how effective counseling policies can be in
reducing loan disbursements. The university was able to cut
student debt by $31 million simply by telling students what
their monthly payment would be after graduation before such
students took out loans for the next year.\107\ This was more
than five times the decrease in outlays at four-year public
institutions nationally. By also incorporating this idea into
the PROSPER Act, the Committee is taking steps to limit
needlessly high loan balances which can help borrowers avoid
harmful defaults.
---------------------------------------------------------------------------
\107\Janet Lorin, How Students at a U.S. University Borrowed $31
Million Less, Bloomberg (July 5, 2014) http://www.bloomberg.com/news/
2014-07-03/here-s-how-indiana-university-students-borrowed-31-million-
less.html.
---------------------------------------------------------------------------
Recipients of federal financial aid do not receive critical
information about loans and grants in an easily accessible way.
The Committee addresses this information gap by requiring a
consumer-friendly tool designed to educate individuals about
the critical terms and conditions of the federal aid programs.
Borrowers, presented with better information, will be able to
manage financial obligations and responsibly pay for
postsecondary education. The PROSPER Act provides students and
parents the tools needed to pursue successful educational
pathways that will lead to lifelong prosperity.
D. 90/10 Rule
The 90/10 rule was put into effect by the Higher Education
Act Amendments of 1998. It prohibits proprietary institutions
from receiving more than 90 percent of their revenues from
Title IV sources and mandates that 10 percent of their revenues
must be from non-Title IV sources. The rule replaced its
predecessor, the 85/15 rule, which was created in Higher
Education Amendments of 1992. The regulations outlining the
payments that count in the numerator and in the denominator
were codified in the Higher Education Opportunity Act.
Because the 90/10 rule does not serve as an appropriate
proxy of institutional integrity and educational quality and
leads to higher costs for institutions that serve low-income
students, the PROSPER Act repeals the 90/10 rule A publication
written by Mr. Anthony J. Guida Jr. and Mr. David Figuli of the
University of Chicago Law Review, states:
[T]he 90/10 rule--through complex regulatory metrics
with contradictory implications, penalize proprietary
institutions that serve high minority populations and
discourage them from providing the type of access that
federal student funding initiatives were intended to
enable. If, as the data and analysis suggest, it is the
type of student enrolled, as opposed to the quality of
the program offered or the institution offering it,
that is the primary cause of low graduation rates,
excessive debt, and student defaults, then it is
pointless to shift these students from proprietary
institutions to nonprofit and public colleges. Both
rules should be eliminated in favor of policies that
apply to all types of institutions, that are designed
to ensure student access and success, that require
transparency and comparability, that consider
institutional mission where appropriate, that measure
student outcomes normalized against populations served,
and that treat at-risk students equitably no matter
what institution they choose to attend.\108\
---------------------------------------------------------------------------
\108\Anthony J. Guida Jr. and David Figuli, Higher Education's
Gainful Employment and 90/10 Rules: Unintended ``Scarlet Letters'' for
Minority, Low-Income, and Other At-Risk Students, The University of
Chicago Law Review (2011), https://chicagounbound.uchicago.edu/cgi/
viewcontent.cgi?article=5563&context=uclrev.
The Committee believes this metric is largely arbitrary and
placed unfairly on proprietary institutions. The Committee
believes that all institutions should be held to the same
accountability metrics, and the PROSPER Act accomplishes this
goal by applying a programmatic loan repayment rate to all
programs at institutions to determine their eligibility to
participate in Title IV aid, allowing accreditors to asses
institutional success based on student learning and educational
outcomes in relation to the institution's mission, and
requiring all institutions to provide students aggregated data
regarding the average debt and earnings of graduates.
Negotiated rulemaking
The negotiated rulemaking process can be a valuable tool to
ensure stakeholder input is considered as federal regulations
are developed and finalized. This is why the HEA requires the
use of the negotiated rulemaking process when regulating on
provisions under Title IV, and the PROSPER Act maintains this
important requirement. However, the Obama administration
distorted the purpose of the negotiated rulemaking process in
order to use it to achieve its own policy goals rather than
work productively with key stakeholders to develop appropriate
and workable regulations. H.R. 4508 improves the negotiated
rulemaking process by establishing specific procedures the
Secretary must follow when issuing federal regulations under
Title IV and providing stakeholders and the authorizing
committees adequate time to review regulations. Dr. Brit
Kirwan, Chancellor Emeritus of the University System of
Maryland and Co-Chair of the Senate Task Force on Federal
Regulation of Higher Education, called for reform to the
process at a February 7, 2017, hearing saying ``the negotiated
rulemaking process used by the Department should be improved to
ensure it achieves its intended goals.''\109\ The Committee
believes the reforms in the PROSPER Act help reduce excessive
federal regulation on campuses; prevent the Secretary from
compounding the burden of federal regulations already on the
books; and ensure stakeholders have ample time to raise
concerns with proposed regulations and to request they be
addressed accordingly before the regulations are finalized.
---------------------------------------------------------------------------
\109\Testimony of Brit Kirwan, Hearing on Challenges and
Opportunities in Higher Education, supra note 55.
---------------------------------------------------------------------------
Loan servicing
Loan servicers are federal contractors that handle billing,
repayment plan enrollment, loan consolidations, and other
related tasks. These servicing entities help borrowers manage
their student loans and are subject to comprehensive and
vigorous federal requirements. In the HEA, Congress gives the
Department the authority to contract with companies in order to
fulfill the requirements of the law. A unified federal
regulatory framework promotes consistent, high-quality customer
service at a low-cost to the taxpayer. Congress has given the
Department sole regulatory and procurement authority when it
comes to contracting with companies for origination, servicing,
and collection of federal student loans. The Ninth Circuit, in
the case of Chae v. SLM Corp, adjudicated this congressional
intent when it found that ``permitting varying state law
challenges across the country, with state law standards that
may differ and impede uniformity, will almost certainly be
harmful . . . .''\110\
---------------------------------------------------------------------------
\110\Ann Chae, et al v. SLM Corporation, et al, No. 08-56154 (9th
Cir. 2010).
---------------------------------------------------------------------------
The PROSPER Act maintains the federal preemption and
further clarifies entities under contract are exempt from state
and local rules seeking to impose requirements when such
entities are carrying out federal student loan activities. A
number of states have proposed or passed a series of well-
intentioned requirements in an effort to improve servicing for
students. Unfortunately, these rules and laws are often
contradictory or duplicative of federal requirements. They
threaten to undo the unified regulatory framework and further
complicate borrowers' efforts to repay student loans. The
majority of borrowers' negative experiences arise from a
misunderstanding of the terms of their loans, which are
determined by statute or regulation, and cannot be changed by a
loan servicer. Guaranteeing federal student loans are treated
the same for borrowers across the country will help borrowers
have a better understanding of their opportunities to succeed
in repayment and develop a solid financial history. State
attempts to add servicing rules will not ensure the long-term
financial safety of federal student loan borrowers and will
instead make it difficult, to the detriment of borrowers, for
the Department to implement its student loan programs. These
state regulations will also have a harmful effect on the cost
of operating the federal loan program. The Committee is
committed to providing all federal student loan borrowers a
high-quality borrowing experience and looks forward to working
with the Department to modernize and update federal student
loan servicing.
State authorization
For more than 50 years, the HEA has required an institution
of higher education participating in federal student aid
programs be authorized to provide a postsecondary educational
program within a state.\111\ The state authorization regulation
promulgated by the Obama administration has been plagued by
numerous implementation issues and delays\112\ and micromanages
how states comply with this long-standing requirement. The
Committee believes the state authorization regulation imposes a
one-size-fits-all requirement that will harm students and
public and private colleges. In issuing the regulation, the
federal government overstepped its traditional role in the
higher education accountability triad of utilizing the
knowledge and expertise of states and accrediting agencies to
measure and ensure institutional quality. The rule also
infringes on the right of states to regulate their higher
education institutions. Therefore, H.R. 4508 repeals the state
authorization regulation and returns to states the authority
for authorizing institutions to operate, and it prohibits the
Secretary from further regulating in the area.
---------------------------------------------------------------------------
\111\20 U.S.C. Sec. 1001(a)(2) (1965).
\112\Russell Poulin and Marianne Boeke, History of State
Authorization, wcet, http://wcet.wiche.edu/focus-areas/policy-and-
regulation/state-authorization/history.
---------------------------------------------------------------------------
One of the more troubling aspects of the state
authorization regulation is its impact on distance education
programs. Under the regulation, institutions of higher
education that offer distance education programs are forced to
seek authorization in each state in which the students it
serves live, no matter how few students from a state might be
served, leading to increased costs and decreased access for
students. During a March 11, 2011, hearing Mr. John Ebersole,
President of Excelsior College, an online institution of higher
education, discussed the burden the state authorization
regulation will impose on his institution:
We do know we have put money in our budget for
compliance and we estimate that at our institution by
the time we hire the additional staff that will be
necessary to coordinate this and we pay the fees which
each of these states requires we are going to have an
annual recurring cost of somewhere between $150,000 and
$200,000 which when multiplied by the number of
institutions that offer online programs today, we are
talking about an additional cost which will eventually
be passed to students of $500 million.\113\
---------------------------------------------------------------------------
\113\Testimony of John Ebersole Before the Committee on Education
and the Workforce Subcommittee on Higher Education and Workforce
Training, Hearing on Education Regulations: Federal Overreach into
Academic Affairs, March 11, 2011, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=227134.
The Association of Public and Land-grant Universities also
undertook an analysis of the cost of seeking authorization in
---------------------------------------------------------------------------
each state where a distance education student resides, finding:
Cost estimates for institutions to achieve full
compliance range from $76,100 for a public community
college to comply with requirements in five states for
257 students to $5.5 million for a public university
system to comply with 49 states. These estimates do not
include the additional expense of staff time, which may
cost some institutions as much as $195,000. State
authorization procedures often duplicate those of
accrediting agencies, creating unnecessary and
redundant costs for institutions. For those states
where an institution has very few students, the cost of
compliance may exceed tuition revenue.\114\
---------------------------------------------------------------------------
\114\State Authorization Reciprocity Agreement, Association of
Public and Land-Grant Universities, http://www.aplu.org/projects-and-
initiatives/project-degree-completion/sara/index.html.
H.R. 4508 further clarifies institutions must demonstrate
authority to operate only in those states in which the
institution maintains a physical location.
Accreditation
Accreditation is often a costly, burdensome, and rigidly
bureaucratic endeavor. The Committee is concerned the role of
accreditation has shifted from its historical purpose--assuring
the quality of educational delivery--to a more compliance-
focused role where accreditors are required to perform duties
for which they are not necessarily well suited and that are
unrelated to academic quality, such as reviewing facilities and
equipment, fiscal capacity, and evidence of compliance with
Title IV responsibilities. The Committee believes refocusing
accreditation standards on educational quality and student
learning as well as reducing the federal government's
burdensome and duplicative regulations may provide accreditors
the capacity to restore their focus on academic quality and
improvement of institutions.
Currently, accreditors are required to evaluate
institutions based on 10 different areas, most of which are
unrelated to academic quality, including on facilities and
equipment, fiscal capacity, and evidence of compliance with
Title IV responsibilities. H.R. 4508 replaces the 10 standards
with a requirement that accreditors have standards to assess
the institution's success in relation to the institution's
mission with respect to student learning and educational
outcomes. Under the legislation, accreditors are required to
define expected student learning goals and educational outcomes
for institutions or to require their institutions to do so
themselves. Institutions must then demonstrate performance
against those expected measures as part of their review. The
Committee notes that nothing in the legislation would prevent
accreditors from continuing to have other standards in place
that assess institutional quality.
Dr. Michale McComis, Executive Director of the Accrediting
Commission of Career Schools and Colleges, testifying at an
April 25, 2017, hearing noted:
[A]ccreditors must do better at defining student
achievement outcomes with greater transparency to show
how these measures are applied so that the public and
policy makers can rely on the results of those
evaluation processes. Accreditation, as the sector with
the principle responsibility for quality assurance in
higher education, needs to work earnestly toward moving
the discussion of accreditation's effectiveness from
that of skepticism to confidence.\115\
---------------------------------------------------------------------------
\115\Testimony of Michale McComis Before the Committee on Education
and the Workforce Subcommittee on Higher Education and Workforce
Development, Hearing on Strengthening Accreditation to Better Protect
Students and Taxpayers, April 27, 2017, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=401569.
In an effort to increase institutional accountability
without involvement by the federal government, H.R. 4508
requires accreditors to have a system in place in which they
annually identify institutions or programs accredited by the
agency that may be experiencing difficulties accomplishing
their missions with respect to their established student
learning and educational outcome goals. Under the legislation,
accreditors are directed to, as appropriate, use information
such as student loan default or repayment rates, retention or
graduation rates, evidence of student learning, financial data,
and other indicators to identify at-risk institutions and
require those institutions or programs to address deficiencies
and ensure that any plan to address and remedy deficiencies is
successfully implemented. The Committee believes this provision
increases transparency and accountability without tying
performance to an automatic sanction. Accreditors will be able
to consider institutional mission and other factors impacting
performance, such as students served, when reviewing the
institution.
H.R. 4508 requires all accrediting agencies wishing to be
recognized by the Secretary to meet the same criteria,
including being separate and independent from any related,
associated, or affiliated trade association or membership
organization. This guarantees the recognition of an
accreditation agency by the Secretary means the same thing
across all types of accreditors. The Committee believes
requiring accrediting agencies to be independent of affiliated
trade associations will mitigate any potential conflicts of
interest that accreditors may have in accrediting their own
members. Under the PROSPER Act, any agency or association with
a voluntary membership and the principal purpose of accrediting
institutions will also be allowed to apply for recognition by
the Secretary, breaking up the accreditation monopoly and
expanding which types of entities can be accreditors.
H.R. 4508 strikes provisions that single out institutions
offering distance education and require accreditors to
demonstrate the ability to review, evaluate, and assess the
quality of any instruction delivery model or method the agency
seeks to include within its scope of recognition. However, as
distance education has become a norm, the Committee expects
institutions that offer distance education to have security
mechanisms in place to ensure the student who registers for the
course or program is the same student who participates in the
course and completes the program to receive academic credit.
The security mechanisms utilized should ensure that a log-in to
the institution is not easily transferable from one individual
to another individual. Authentication technology continues to
evolve at a fast pace, offering a range of solutions to address
financial and academic fraud that would otherwise undermine the
public confidence of the distance education sector. The
Committee strongly believes the security mechanisms put in
place should not infringe on any student's privacy and should
be implemented in a less burdensome and intrusive way.
The Committee believes increasing flexibility in how often
accreditors need to review institutions and in what they
require of institutions during review cycles will improve
efficiencies and flexibility. H.R. 4508 provides accreditors
with clear authority to undertake differentiated reviews that
reflect the institution's history of meeting accreditation
standards and record of performance on key metrics.
Additionally, the PROSPER Act requires accreditors review only
substantive changes that significantly impact the educational
mission or programs offered at an institution and prohibits the
Secretary from further regulating in this area. Furthermore,
under current law, institutions not under any sanction from
their accreditor are not permitted to change accreditors
without first getting approval from the Secretary. The
Committee believes this is an unnecessary requirement for
institutions in good standing with their accreditor. H.R. 4508
allows institutions not under sanction by their accreditor or a
state agency to change accreditors without the approval of the
Secretary, provided the institution notifies the Secretary of
the change.
Federal requirements on accreditors often prohibit them
from approving innovative programs. Mr. McComis highlighted the
need for flexibility to allow for innovation in his testimony
before the Committee, saying ``for the sake of higher
education's advancement, the higher education community--
including accrediting agencies--must be allowed to adapt and
innovate in order to accommodate the diversity of students,
student preferences, and learning styles.''\116\ The Committee
agrees with Mr. McComis and included a wavier process in the
PROSPER Act, based on H.R. 3869, the Innovation in
Accreditation Act, introduced by Rep. Bradley Byrne (R-AL),
through which an accreditor can apply to have a requirement
waived if the accreditor can demonstrate such waiver is
necessary to enable an institution of higher education or
program to implement innovative practices.
---------------------------------------------------------------------------
\116\Id.
---------------------------------------------------------------------------
H.R. 4508 requires accreditors to post on their websites
for public inspection a list of all institutions accredited by
the agency, the year the accreditation was granted, the date of
the most recent comprehensive evaluation, and the anticipated
date of the next evaluation. Accreditors are also required to
post all actions taken and a summary of why any adverse actions
were taken. The Committee believes providing the public with
access to summary information on individual institutions'
accreditation reviews will help increase transparency and
public accountability while still maintaining the usefulness of
the accreditation process to institutions.
Additionally, the Committee believes federal intrusion in
transfer of credit decisions is an inappropriate federal
overreach into issues of academic freedom. However, the
Committee is concerned over reports that some students are
unable to easily transfer credit and continue their education
when going from a nationally to regionally accredited
institution. The Committee agrees with the sentiments regarding
balance in the use of accreditation status in transfer
decisions expressed in the ``Joint Statement on the Transfer
and Award of Credit'' by the American Association of Collegiate
Registrars and Admissions Officers, the Council for Higher
Education Accreditation, and the American Council on Education:
Institutions and accreditors should ensure that
decisions about awarding transfer credit are not made
solely on the source of accreditation of the sending
program or institution. While acknowledging that
accreditation is an important factor, receiving
institutions ought to make clear their institutional
reasons for accepting or not accepting credits that
students seek to transfer. Students should have
reasonable explanations about how work for which
students seek transfer credit is or is not of
sufficient quality when compared with the receiving
institution and how work is or is not comparable with
curricula and standards to meet degree requirements of
the receiving institution.\117\
---------------------------------------------------------------------------
\117\Joint Statement on the Transfer and Award of Credit, AACRAO,
CHEA, & ACE (Oct. 2, 2017), https://www.chea.org/userfiles/uploads/
Joint-Statement-Transfer-Award-Credit-2017.pdf.
Accreditors are currently required to consistently apply
and enforce standards that respect the stated mission of the
institutions they accredit, including religious missions.
However, accreditation actions in the past have raised concerns
that accreditors may be acting inconsistently with this
requirement. H.R. 4508 clarifies the religious mission of an
institution may be reflected in the institution's beliefs,
speech, standards of conduct, and policies, including any
policies regarding admission, retention, employment, housing,
or student conduct. The legislation also makes clear an
accreditor's standard fails to respect an institution's
religious mission when the standard induces or pressures an
institution to act contrary to, or to refrain from acting in
support of, any aspect of its religious mission. The PROSPER
Act provides institutions the option to file a complaint with
the Secretary if the institution believes an adverse action of
an accrediting agency fails to respect the institution's
religious mission. The Committee believes that to maintain the
important diversity of the American higher education system
accreditors must continue to respect institutional missions in
their review process.
Eligibility and certification procedures
The Secretary is required under the law to ensure federal
student aid funds only flow to institutions of higher education
that are financially healthy. The report from the Task Force on
the Federal Regulation of Higher Education evaluated the
current financial responsibility standards and the process used
by the Secretary to determine financial responsibility. The
task force found that the Department is not living up to this
responsibility:
[T]he agency has incorrectly interpreted and
implemented the accounting definitions and standards
used to calculate the financial responsibility
composite scores for private nonprofit, and for-profit
institutions. It has also failed to follow the
statutory requirement to consider the overall financial
health of an institution and has deemed institutions as
failing based solely on these composite scores. These
policies need to be revised to promote greater
transparency about the method by which the Department
reaches its determinations and a process that allows
institutions to challenge them. This would include
allowing schools to submit additional evidence of their
overall financial health.\118\
---------------------------------------------------------------------------
\118\Task Force on Federal Regulation of Higher Education, supra
note 98.
H.R. 4508 reforms the process by which the Secretary
determines if an institution is financially responsible to
ensure a more accurate determination. The legislation also
provides for alternative ways of determining an institution's
financial responsibility beyond the federally calculated
composite score by relying more extensively on already existing
industry and professional standards. The legislation provides
for an official review, appeal, and transparency process for
institutions continuing to use the federal composite score that
allows for the current financial situation at an institution to
be considered and establishes a timeline for institutions to
correct financial weaknesses. The Committee expects the
Secretary to follow statutory requirements under this section
as well as ensure the use of current accounting practices when
carrying out these provisions.
Additionally, the Committee believes the program review
process should be improved. At a February 7, 2017, hearing, Dr.
Kirwan underscored the Committee's concerns and called for
reforms to the program review process, noting:
[T]he Department should be required to act in a
timely manner when conducting program reviews and
investigating and resolving complaints.
Under the HEA, colleges and universities are required
to submit documents and other records requested by the
Department within a prescribed amount of time. While
institutions are required to adhere to strict time
lines in terms of responding to the agency's requests,
there are no time limits imposed on the Department in
terms of issuing a final determination after a program
review.
By way of example, in May 2013, Yale University was
ordered to repay financial aid funds based on a
Department of Education audit undertaken in 1996. The
University of Colorado received a similar demand based
on a 1997 audit. Even though the universities appealed
in a timely fashion, it took 17 and 16 years,
respectively, for the Department to take action. Taking
over 10 years to complete a program review and issue
fines should not be considered acceptable.\119\
---------------------------------------------------------------------------
\119\Testimony of Brit Kirwan, Hearing on Challenges and
Opportunities in Higher Education, supra note 55.
H.R. 4508 addresses these lapses by requiring the Secretary
to conduct, respond to, and conclude program reviews within
specified timeframes. The legislation also requires the
Secretary to provide a written explanation to an institution
upon the initiation of a program review detailing the reasons
for the review when practicable. The Committee urges the
Secretary to make every effort to complete program reviews as
quickly as possible but in no longer than the timelines
outlined in the legislation.
Title V--Developing Institutions
Title V of the HEA authorizes institutional aid to
Hispanic-Serving Institutions (HSIs). To be designated as an
HSI, an institution must have at least 25 percent of enrolled
students who are Hispanic-American. Of the 700 institutions
that are eligible to receive institutional aid according to the
2017 Eligibility Matrix released by the Department, more than
300 institutions are HSIs.\120\ Also, Hispanic enrollment has
increased more than 10 percent from 2005 to 2015.\121\
---------------------------------------------------------------------------
\120\Eligible Institutions for Title III and Title V Programs,
supra note 31.
\121\Digest of Education Statistics, Table 302.60: Percentage of
18- to 24-year-olds enrolled in degree-granting postsecondary
institutions, by level of institution and sex and race/ethnicity of
student: 1970 through 2015, National Center for Education Statistics
(2016), https://nces.ed.gov/programs/digest/d16/tables/dt16_302.60.asp.
---------------------------------------------------------------------------
The PROSPER Act reauthorizes the Developing Institutions
program in Title V, making similar reforms to the program as
were made for institutions participating in the institutional
aid programs in Title III. Like programs in Title III, the bill
expands the allowable uses to include activities such as
establishing community outreach programs, developing career-
specific programs, establishing dual or concurrent enrollment
programs, and establishing pay for success initiatives. The
bill also explicitly allows institutions to award scholarships
from their endowments and promotes institutional self-
sustainability by requiring eligible institutions develop a
comprehensive plan to maximize resources that will result in
institutions needing less institutional aid to offer the same
services to their students. Furthermore, a completion rate of
at least 25 percent also applies to HSIs.
Title VI--International education programs
The international education programs in the HEA authorize
the Secretary to award grants to institutions to enhance
instruction in foreign language and area studies and to support
research, faculty exchanges, and student fellowships.
The PROSPER Act repeals all unfunded programs and
reauthorizes all currently-funded programs under Title VI,
except the Undergraduate International Studies and Foreign
Language program (UISFL) and the American Overseas Research
Centers (AORC) program. Services found in the AORC program and
the UISFL program closely mirror services found in the National
Resource Centers program, such as the linkages maintained
between overseas institutions or organizations that may
contribute to the teaching and research of the center or
program; basic functionalities to include teaching, research,
and curriculum development; and the support for faculty, staff,
and student travel. The Committee believes students can benefit
from the services and opportunities in the National Resource
Centers programs and, therefore, H.R. 4508 streamlines this
title and repeals the duplicative AORC and UISFL programs.
The PROSPER Act requires an institution to assure the
Secretary it will support a diverse perspective and wide range
of views to generate debate on world regions and international
affairs. The Secretary is required to submit an annual report
to Congress on how institutions are complying with this
requirement, and H.R. 4508 clarifies institutions receiving
these funds shall not promote any biased views that are
discriminatory toward any group, religion, or population of
people, such as anti-Semitic views. The Committee believes
institutions should present views that are unbiased and non-
discriminatory.
Title VII--Graduate and postsecondary improvement programs
Graduate education programs
Title VII of the HEA allows entities to apply for a
competitive grant to assist students pursing a degree beyond
undergraduate education. In an effort to streamline this title,
H.R. 4508 repeals unfunded programs and maintains those
programs that received funding in FY 2017. The eliminated
programs include the Fund for the Improvement of Postsecondary
Education and the College Access Challenge Grant program.
Programs for students with disabilities
H.R. 4508 reauthorizes key programs to support students
with disabilities, while repealing programs and activities that
have already been carried out or that have not received
funding. The bill also restructures funding for the
Coordinating Center and the National Technical Assistance
Center to bring these provisions in line with their current
funding arrangements. The Committee believes this approach
reflects the bipartisan, bicameral priorities that have been
established by multiple Congresses. In particular, the
Committee believes reauthorizing the Model Transition Programs
and maintaining language that offers participating students
access to certain federal financial aid will encourage colleges
and universities to expand critical postsecondary education
opportunities for students with intellectual disabilities.
Title VIII--Other repeals
H.R. 4508 repeals all programs in Title VIII, most of which
have never received funding. While the majority of Title VIII
programs have never been funded, programs in other titles serve
the populations Title VIII programs are designed to serve and
are reauthorized under the PROSPER Act. Repealing the Title
VIII programs will ensure any future funding to assist these
populations is directed toward programs authorized under H.R.
4508, thereby maximizing funding, streamlining programs that
serve these populations, and protecting congressional
priorities.
Title IX--Amendments to other laws
Education of the Deaf Act
H.R. 4508 reauthorizes the Education of the Deaf Act (EDA),
which authorizes the operation of Gallaudet University and the
National Technical Institute for the Deaf. The bill repeals
unfunded programs within EDA, while maintaining support for
these two institutions that offer critical elementary,
secondary, and postsecondary education opportunities to
students who are deaf and hard of hearing. The bill maintains
bipartisan language related to Gallaudet University's
compliance with the Every Student Succeeds Act, while providing
the university increased flexibility in how to meet those
requirements. This change will ensure the Laurent Clerc
National Deaf Education Center programs are held accountable
for delivering an excellent education, freeing the university
from the obligation to partner with another state for use of
that state's academic standards, assessments, and
accountability system. The bill also makes changes to the
Gallaudet University Board of Directors. H.R. 4508 increases
the total number of board members from 21 to 23, equalizes the
number of Senators and Members of the House of Representatives
on the board, and ensures bipartisan representation. These
changes will increase the accountability of the university to
Congress and taxpayers and maintain the balance of board
members from the public and private sectors.
Tribally Controlled Colleges and Universities
H.R. 4508 reauthorizes the Tribally Controlled Colleges and
Universities Assistance Act to continue funding for
institutions created and chartered by tribal governments or the
federal government to provide higher education to American
Indian students through local, culturally based programs. The
Committee believes students should have a variety of options to
choose from when pursuing higher education, including programs
that support cultural traditions and heritage.
General Education Provisions Act
H.R. 4508 amends the student privacy section of the General
Education Provisions Act known as the Family Educational Rights
and Privacy Act (FERPA). Under FERPA, student records are
prohibited from being shared without consent unless one of the
exceptions is met. The amendment adopted adds the authority for
an institution of postsecondary education to share a student
record with the student's previous institution to apply the
coursework from one institution to the other for the purposes
of awarding a recognized credential, a process known as
``reverse transfer.'' Importantly, the amendment includes a
requirement to get consent from the student prior to the
awarding of the credential. Student records contain personal
information that exceeds the student's educational information,
and the records should be shared in very limited circumstances
and only for the benefit of students. When sharing a record,
schools must weigh the balance of protecting the student's
privacy and improving the student's education. Through the
reverse transfer process, students may benefit from receiving a
credential they had not realized they had earned, but ensuring
students consent before conferring such credential is a
critical recognition of the importance of student privacy.
Conclusion
Americans have invested billions of dollars and countless
hours of hard work into higher education in an effort to earn a
better job and live a fulfilling life. But the promise of
postsecondary education in this country is broken.
Unfortunately, today's chaotic maze of federal aid programs,
requirements, and red tape has driven up college costs and made
pursuing and finishing a postsecondary education unworkable for
far too many individuals at a time when more businesses are
demanding their employees attain postsecondary credentials to
fill technical, high-skill, good-paying jobs. Americans deserve
better.
It is time to put the postsecondary system on track to meet
the needs of students. The reforms in the PROSPER Act reimagine
the outdated concepts of higher education and support students
in completing an affordable postsecondary education that will
prepare them to enter the workforce with the skills they need
for lifelong success.
Section-by-Section
Section 1. Short title and table of contents
Designates the bill as the ``Promoting Real Opportunity,
Success, and Prosperity Through Education Reform Act (PROSPER
Act)'' and lists the sections of the bill. The legislation is
organized into nine titles: (1) General Provisions; (2)
Expanding Access to In-Demand Apprenticeships; (3)
Institutional Aid; (4) Student Assistance; (5) Developing
Institutions; (6) International Education Programs; (7)
Graduate and Postsecondary Improvement Programs; (8) Other
Repeals; and (9) Amendments to Other Laws.
Section 2. References
Clarifies the following amendments and repeals are, unless
otherwise stated, being made to the Higher Education Act of
1965 (HEA).
Section 3. General effective date
Sets the effective date at the date of enactment of the
PROSPER Act.
TITLE I--GENERAL PROVISIONS
Part A--Definitions
Section 101. Definition of institution of higher education
Collapses the two definitions of ``institution of higher
education'' into one, but maintains the eligibility exclusion
of proprietary institutions for grant programs in Titles III
and V.
Section 102. Institutions outside the United States
Outlines qualifications for institutions outside of the
United States to be eligible to participate in Title IV aid.
Authorizes American students with Title IV aid to attend
foreign medical schools by counting all students in the passage
rate on the United States Medical Licensing Examination
(USMLE), changes the USMLE passage rate to an aggregate rate of
75 percent, and creates a grace period of two years for foreign
institutions to have a passage rate of no lower than 70 percent
before losing Title IV eligibility.
Authorizes institutions to partner with non-Title IV
institutions to offer courses to students in certain programs.
Allows institutions to submit audited financial statements
prepared in accordance with their home country regardless of
the amount of Title IV funds received as long as the statements
are comparable to the International Financial Reporting
Standards.
Removes the requirement that the Secretary of Education
(the Secretary) pre-approve a clinical education program as
long as it is operated by an accredited hospital or clinic in
the United States or at a Liaison Committee on Medical
Education accredited institution in Canada.
Section 103. Additional definitions
Amends the definitions of the terms ``early childhood
education'' and ``nonprofit.'' Repeals the definition of the
term ``distance education.'' Adds definitions for the terms
``correspondence education,'' ``competency-based education,''
``competency-based education program,'' ``competency,'' ``pay
for success initiative,'' and ``evidence-based.''
Section 104. Regulatory relief
Repeals the following regulations: definitions of ``credit
hour,'' ``gainful employment,'' and ``borrower defense.''
Prohibits the Secretary from promulgating or enforcing any
regulation or rule with respect to the definition or
application of the terms ``gainful employment'' or ``credit
hour'' for any purpose under the Higher Education Act of 1965.
Prohibits the Secretary from carrying out, developing,
refining, promulgating, publishing, implementing,
administering, or enforcing a postsecondary institution rating
system or any other performance system to rate institutions of
higher education.
Part B--Additional General Provisions
Section 111. Free speech protections
Inserts a sense of Congress that individuals should be free
to profess their opinions in matters of religion and that no
public institution of higher education receiving funding under
the HEA should limit religious expression. Strengthens a sense
of Congress that free speech zones and restrictive speech codes
are inherently at odds with the First Amendment and that public
institutions of higher education receiving funds under the HEA
should not restrict the speech of their students. Requires
institutions of higher education to annually disclose to
current and prospective students any policies held by the
institution related to protected speech on campus, including
policies limiting where and when such speech may occur.
Requires the Secretary to designate an employee at the Office
of Postsecondary Education to receive complaints from students
who believe an institution is not in compliance with a publicly
disclosed policy on speech or is enforcing a policy that has
not been previously disclosed.
Section 112. Sense of Congress on inclusion and respect
Expresses a sense of Congress that harassment and violence
targeted at students because of their race, color, religion,
sex, or national origin should be condemned and that Congress
is committed to supporting institutions in creating safe and
respectful learning environments that respect people from all
backgrounds.
Section 113. National Advisory Committee on Institutional Quality and
Integrity
Extends the authorization of the National Advisory
Committee on Institutional Quality and Integrity (NACIQI),
which was established to advise the Secretary on the federal
recognition of accrediting agencies, until September 30, 2024.
Allows the Secretary to remove any NACIQI member who was
appointed by a previous secretary and fill the vacancy, and
narrows the scope and functions of the committee to advising
the Secretary solely on matters related to accreditation.
Section 114. Repeal of certain reporting requirements
Repeals a provision requiring institutions to submit a
detailed report of all foreign gifts or contracts over
$250,000, as well as any restricted gifts from foreign sources.
Repeals a sense of Congress that gives recommendations to
institutions on how to address binge drinking on college
campuses.
Section 115. Programs on drug and alcohol abuse prevention
Replaces an ineffective requirement that an institution
adopt a drug and alcohol abuse prevention program meeting a
number of detailed requirements with a clear and
straightforward requirement that institutions adopt and
implement an evidenced-based program designed to discourage the
use of illicit drugs and abuse of alcohol by students and
employees. Requires the Secretary, in consultation with the
Secretary of Health and Human Services and outside experts, to
share best practices for addressing and preventing substance
abuse as well as supporting students in substance abuse
recovery and provide technical assistance to institutions to
implement best practices.
Section 116. Campus access for religious groups
Prohibits any public institution of higher education that
denies a religious student organization any right, benefit, or
privilege generally afforded to other student organizations on
the basis of the organization's religious beliefs, practices,
speech, leadership or membership standards, or standards of
conduct from receiving funding under the HEA.
Section 117. Secretarial prohibitions
Explicitly prohibits the Secretary from exceeding his/her
authority, defining any terms inconsistent with the HEA, or
adding any requirements on institutions and states that are not
explicitly authorized in the law.
Section 118. Ensuring equal treatment by governmental entities
Prohibits the federal government and other governmental
entities receiving federal funding from taking an adverse
action against an institution of higher education because of
the religious mission of the institution.
Section 119. Single-sex social student organizations
Prohibits institutions from retaliating against single-sex
student organizations or members of such organizations on the
basis of the organization's single-sex status.
Section 120. Department staff
Directs the Secretary to identify the number of Department
of Education (Department) full-time equivalent employees who
worked on or administered education programs and projects
eliminated or consolidated under the PROSPER Act and reduce the
Department staff by that number of employees.
Section 120A. Department of Homeland Security recruiting on campus
Prohibits from receiving funds under the HEA those
institutions of higher education with a policy of prohibiting
or preventing the Department of Homeland Security from
recruiting on campus.
Part C--Cost of Higher Education
Section 121. College dashboard website
Requires the Secretary to create a consumer-tested College
Dashboard website that displays key information about colleges
and universities, including aggregated information on
enrollment, completion rate, cost, and financial aid listed in
simple and understandable terms for each institution of higher
education that participates in a student aid program under
Title IV. Requires the Secretary to include aggregated
information on the average debt of borrowers at graduation and
the average salary of students who received federal financial
aid at both five and 10 years after graduation for each program
at a listed institution of higher education. Requires the
Commissioner of Education Statistics to ensure completion rates
are reflective of all students, including contemporary students
and Pell Grant recipients, and the actual length of the
program. Instructs the Secretary to provide a link to the
College Dashboard page of each institution listed on a
student's Free Application for Federal Student Aid (FAFSA) to
ensure students know this information is available. Directs the
Secretary to coordinate with other federal agencies to ensure
published higher education data is consistent with the
information available on the College Dashboard.
Section 122. Net price calculators
Requires net price calculators be easily identifiable and
prominently posted on institutions' websites where other cost
and student aid information is available. Calculators must
include information on cost of attendance, available grant aid,
and veterans' educational benefits.
Prohibits any personally identifiable information provided
by users to institutional net price calculators from being sold
or made available to third parties.
Section 123. Text book information
Makes a conforming change related to the definition of an
institution of higher education.
Section 124. Review of current data collection and feasibility study of
improved data collection
Requires the Secretary to review all current institutional
data reporting requirements. Requires the Secretary to explore
the feasibility of working with the National Student
Clearinghouse to establish a third-party method of producing
institution and program-level analysis of the necessary data
reported.
Part D--Administrative Provisions for Delivery of Student Financial
Assistance
Section 131. Performance-Based Organization for the delivery of federal
student financial assistance
Expands the purpose of the Performance-Based Organization
(PBO) to include improving the Office of Federal Student Aid's
(FSA) consultation with student aid stakeholders and increasing
the transparency of FSA operations. Requires the Secretary and
chief operating officer (COO) jointly to submit an annual
report to the authorizing committees that includes a summary of
this consultation and a description of any actions taken as a
result of it. Creates an advisory board at FSA to approve FSA's
performance plan, make recommendations on providing bonuses for
senior executives, and help FSA adopt best practices for loan
management employed in the private sector. Requires FSA to set
specific, measurable, and transparent goals for increasing
performance.
Section 132. Administrative data transparency
Requires the COO of FSA to be more transparent about the
performance of the federal student loan system, including to
publicly and electronically report to the public information
related to the repayment of loans throughout the lifecycle,
public service loan forgiveness, and borrower default. Requires
the Secretary and COO to provide researchers a de-identified
data file of student loans. Authorizes the Secretary to enter
into cooperative intergovernmental data sharing agreements to
ensure accuracy of the data provided. Requires the Secretary
and COO to ensure any information published or otherwise made
available under this section does not reveal personally
identifiable information.
Section 133. Report by GAO on transfer of functions of FSA to the
Department of Treasury
Requires the Comptroller General to study the feasibility
and practicality of moving FSA from the Department to the
Department of the Treasury.
Part E--Lender and Institution Requirements Relating to Education Loans
Section 141. Modification of preferred lender arrangements
Expands the term ``covered institution'' to include
institutions outside the United States. Allows schools to more
easily provide information to borrowers on private and state-
based loan options. Removes the most burdensome of the
preferred lender list requirements, including a report to the
Secretary detailing why an institution selected a lender for
the preferred lender list, while maintaining certain
parameters. Prohibits the Secretary from imposing any preferred
lender list requirements beyond those explicitly authorized.
Part F--Addressing Sexual Assault
Section 151. Addressing sexual assault
Requires institutions to survey students at least once
every three years to measure campus attitudes towards sexual
assault and the general climate of the campus regarding the
institution's treatment of sexual assault on campus. Requires
institutions to use the results of the survey to improve the
institution's ability to prevent and respond to incidents of
sexual assault. Requires institutions maintain confidentiality.
Requires the Secretary to develop sample surveys that an
institution may elect to use but prohibits the Secretary from
regulating on the contents of the required survey.
Requires institutions to retain the services of qualified
counselors to counsel and support students who are victims of
sexual assault and notify students of the availability of the
counselor. Requires the counselor to maintain confidentiality
to the greatest extent provided by law and notify the victim of
any circumstance under which the counselor is required to
report information to others. Requires the counselor be
considered a recognized professional for purposes of the
Federal Educational Rights and Privacy Act and not a
``responsible employee'' under Title IX of the Education
Amendments of 1972 nor a campus security authority under the
Clery Act.
Requires institutions to develop a one-page form of
information for students who may be victims of sexual assault
and make the form widely available to students. Requires the
Secretary to create a model form for institutions' use.
Requires the Secretary, in consultation with the Attorney
General, to develop best practices for memoranda of
understanding (MOU) between institutions and local law
enforcement and disseminate the best practices on the
Department's website.
TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS
Section 201. Repeal
Repeals all programs under Title II and allows funds
appropriated for Part A of Title II--in effect on the day
before enactment of the PROSPER Act--to be used to carry out
that part of the HEA through the end of fiscal year 2018.
Section 202. Grants for access to high-demand careers
Moves an existing competitive grant program for community
colleges (referred to as the Strengthening Institutions Program
in Title III) to Title II and changes the program's focus to
student access to, and participation in, industry-led earn-and-
learn programs that lead to high-wage, high-skill, and high-
demand careers.
Makes grants available to eligible partnerships consisting
of at least one business and one institution of higher
education to develop or expand earn-and-learn programs of not
more than two years in length that lead to a recognized
postsecondary credential and requires a 50 percent match from
non-federal funds for those grants.
Authorizes the purchase of appropriate equipment,
technology, or instructional materials aligned with industry
needs; the purchase of student books, supplies, and equipment
required for enrollment; the reimbursement of up to 50 percent
of wages of students participating in an earn-and-learn
program; the development of industry specific programming;
support of industry-based professionals in the classroom; and
payment of fees for certification exams or other assessments
associated with a recognized postsecondary credential.
Requires applications for grants under this title be
reviewed by a panel of readers consisting of a majority of
business representation, with the remainder of the panel
equally divided between representatives from institutions with
programs of two years or less and state workforce boards.
Requires grants to be awarded based on the number of
participants expected to be served by the grant, the
anticipated income of program participants, and alignment of
the program to be funded with state identified in-demand
industry sectors.
Requires the Secretary, acting through the Director of the
Institute for Education Sciences, to provide for the
independent evaluation of the program. Requires the evaluation
include an assessment of the effectiveness of the program in
expanding earn-and-learn program opportunities, the completion
rates of participants, the median earnings of participants one
and three years after exiting the program funded by the grant,
the credential attainment rate of program participants, and the
sustainability of the program funded by the grant after the end
of the grant period.
Authorizes appropriations for each of Fiscal Years 2019
through 2024.
TITLE III--INSTITUTIONAL AID
Section 301. Strengthening Minority-Serving Institutions
Repeals the Strengthening Institutions program. Authorizes,
in the Minority-Serving Institution program, pay for success
initiatives, dual enrollment, the development of career-
specific programs, and community outreach programs.
Allows grants to be used to establish or increase an
endowment, with the income from such endowment being used to
provide scholarships to students.
Requires a completion rate of at least 25 percent in order
to be eligible for funding, with the completion rate calculated
by (1) counting a student as completed if that student
graduates within 150 percent of the normal time for completion
and (2) if a student transferred from a program that provided
substantial preparation within 150 percent normal time for
completion.
Requires institutions to return any grant funds not
expended after 10 years back to the Treasury. Authorizes Alaska
Native and Native Hawaiian-Serving Institutions and Native
American, Nontribal Institutions to establish an endowment and
award scholarships from that endowment.
Section 302. Strengthening Historically Black Colleges and Universities
Aligns allowable uses of funds for HBCUs with the Minority
Serving Institution programs and allows HBCUs to use grant
funds for initiatives to improve the educational outcomes of
African American males.
Adds the University of the Virgin Islands School of
Medicine to the list of eligible graduate institutions that
have access to funding allotted for HBCU postgraduate
institutions.
Section 303. Historically Black College and University capital
financing
Creates a bond insurance fund for new accounts and
authorizes existing loans to continue under the existing escrow
authority, requires the Advisory Board to report annually to
Congress on loans in the program, and requires financial
counseling to eligible HBCUs before their participation in the
program.
Section 304. Minority Science and Engineering Improvement Program
Makes minor technical changes.
Section 305. Strengthening Historically Black Colleges and Universities
and Other Minority-Serving Institutions
Makes minor technical corrections.
Section 306. General provisions
Encourages institutional self-sustainability by requiring
eligible institutions to develop a comprehensive plan that
strengthens the institution's academic quality and
institutional management to improve institutional self-
sustainability. Allows the Secretary to waive certain
requirements for institutions participating in the program in
the event of a major disaster. Authorizes appropriations for
all currently funded programs for each of Fiscal Years 2019
through 2024 and repeals unfunded programs.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
Section 401. Federal Pell Grants
Reauthorizes the Pell Grant program until Fiscal Year 2024.
Creates a Pell Grant bonus that provides an additional $300
bonus to students who are taking 15 credit hours, or the
equivalent, per semester over the award year, with an effective
date of award year 2018-2019.
Directs the Secretary to provide annually an individualized
Pell Grant status report to each grant recipient.
Requires institutions to disburse grants to students on a
weekly or monthly basis. Sunsets the provision establishing
institutional ineligibility based on default rates to
correspond with the end of the transition period to the loan
repayment rate.
Prohibits students who have received a grant for three
award years but did not earn any academic credit from receiving
additional Pell Grants. Provides the Secretary additional
discretion to stop payments to students with unusual enrollment
histories.
Directs the Secretary to prepare and submit a report to
authorizing committees on Federal Pell Grant spending for the
preceding fiscal year.
Directs the Secretary to report annually on the Pell Grant
bonus and the Comptroller General to complete a study on the
impact of the Pell Grant bonus.
Section 402. Federal TRIO programs
Changes ``prior experience'' to ``accountability for
outcomes'' to focus on high quality service delivery.
Prohibits the Secretary from awarding evaluation points to
previous grantees if two or more objectives established in the
grant application were not met.
Requires the Secretary to reserve not less than 10 percent
of funds to award grants or contracts to new grantees and
reduces the grant notification period from eight months to 90
days.
Adds a 20 percent matching requirement for all grantees and
authorizes the Secretary to reduce or waive this matching
requirement due to economic hardship or in response to a
petition demonstrating an exhaustion of all revenues.
Mandates the Secretary host at least one virtual,
interactive education session using telecommunications
technology. Removes the language ``rigorous secondary school
program of study that will make such students eligible for
programs such as the Academic Competitive Grants Program'' and
replaces it with ``secondary school program of study that will
prepare such students to enter postsecondary education without
the need for remedial education.''
Requires Talent Search and Upward Bound grantees to provide
remedial education services to participants where necessary.
Adds additional criteria grantees must meet for the Talent
Search, Upward Bound, and Veterans Upward Bound.
Requires grantees to maintain, to the extent practicable, a
record of any services participants receive during the project
year from other TRIO programs or other programs serving similar
populations. Requires the Secretary to make program evaluation
grants in the TRIO programs and submit a final report not later
than three years after the enactment of the PROSPER Act.
Sets aside not less than 10 percent of funds for a grant to
be known as the Innovative Measures Promoting Postsecondary
Access and Completion grant (IMPACT) to allow any institution
to create, develop, implement, or replicate evidence-based
initiatives, including pay for success initiatives. Authorizes
grants to be awarded in three phases and requires grantees to
conduct an independent evaluation of the effectiveness of the
project.
Authorizes appropriations for the programs for each of
Fiscal Years 2019 through 2024
Section 403. Gaining Early Awareness and Readiness for Undergraduate
Programs
Refines the mandatory and allowable activities language to
better align to the research on college and career readiness.
Requires the Secretary to host new grant competitions from
funds appropriated for the program, and prohibits states from
receiving multiple grant awards.
Allows grantees to create their own scholarship program
based on criteria such as financial need and satisfactory
academic progress and additional criteria aligned with state
and local goals to increase postsecondary readiness, access,
and completion.
Clarifies the requirements for obtaining a waiver if a
partnership is experiencing a significant economic hardship.
Requires the Secretary to add additional metrics to the
evaluation of the grants to include the number of students
completing the FASFA, the graduation rate of participating
students from high school, and the enrollment of students into
postsecondary education.
Authorizes appropriations for the program for each of
Fiscal Years 2019 through 2024.
Section 404. Special programs for students whose families are engaged
in migrant and seasonal farmwork
Authorizes appropriations for the programs for each of
Fiscal Years 2019 through 2024.
Section 405. Child care access means parents in school
Requires institutions to leverage non-federal resources and
to coordinate with other community-based programs to improve
quality and limit costs. Strengthens language to require that
low-income students are given priority for services. Allows
continuation awards only after documentation of continued need.
Requires child care programs to meet applicable licensing
standards prior to serving children.
Authorizes appropriations for the program for each of
Fiscal Years 2019 through 2024.
Section 406. Repeals
Repeals the Academic Competitiveness Grant program, the
Federal Supplemental Educational Opportunity Grants program
(FSEOG), the Leveraging Educational Assistance Partnership
program, and the Robert C. Byrd Honors Scholarship program.
Sets the FSEOG repeal to take effect on June 30, 2018, but
allows institutions to use already appropriated funds through
the end of the next fiscal year.
Section 407. Sunset of TEACH grants
Sunsets the Teacher Education Assistance for College and
Higher Education (TEACH) Grant program, effective June 30,
2018. Allows current TEACH Grant recipients to continue to
receive grants through the conclusion of their program. Moves
the definition of a borrower eligible for loan cancellation for
serving as a teacher from the Perkins Loan section to this
section.
Part B--Federal Family Education Loan Program
Section 421. Federal direct consolidation loans
Makes technical changes to account for the expiration of
the Perkins Loan program.
Section 422. Loan rehabilitation
Changes the number of times a borrower may obtain the
benefits available with respect to rehabilitating a loan from
one time per loan to two times per loan.
Section 423. Loan forgiveness for teachers
Makes technical changes to account for the expiration of
the Perkins Loan program.
Section 424. Loan forgiveness for service in areas of national need
Makes technical changes to account for the expiration of
the Perkins Loan program
Section 425. Loan repayment for civil legal assistance attorneys
Makes technical changes to account for the expiration of
the Perkins Loan program.
Section 426. Sunset of cohort default rate and other conforming changes
Sunsets the current cohort default rate (CDR) at the
conclusion of the transition period to the new program loan
repayment rate. During the transition period, ONE loans that go
into repayment are included in the CDR.
Section 427. Additional disclosures
Amends the student loan information provided to borrowers
to include the annual percentage rate of the loan as calculated
using the standard 10-year repayment plan.
Section 428. Closed school and other discharges
Clarifies the loan discharge procedures for borrowers.
Codifies parts of the current regulations and requires all loan
borrowers seeking a discharge to submit an application.
Part C--Federal Work-Study Programs
Section 441. Purpose; authorization of appropriations
Allows for the full-time employment of individuals through
the work-study program. Removes graduate and professional
students from program eligibility.
Defines the term ``work-based learning'' in Part C to mean
paid interactions with industry or community professionals in
real workplace settings that foster in-depth, first-hand
engagement with the tasks required of a given career field that
are aligned to a student's field of study.
Reallocates FSEOG program funds.
Authorizes appropriations for the work-study program for
each of fiscal years 2019 through 2024.
Section 442. Allocation formula
Reserves the lesser of 20 percent of the appropriated
amount or $150 million for schools with Pell Grant recipient
completion rates in the top 10 percent as compared to peer
institutions, or schools with large increases in such
completion rates. Permits the Secretary to reserve out of the
work-study appropriation an amount necessary to fund work
colleges.
Reforms the allocation formula by distributing the funding
via a revised fair share formula based on Pell Grant recipients
and undergraduate student need. The base guarantee will phase
out over five fiscal years as the formula moves entirely to the
fair share model. An institution's fair share is determined
using a two-part calculation. Institutional fair share is the
sum of Pell Grant funds distributed at each college compared to
other similar work-study institutions plus the total amount of
undergraduate student need at the college proportional to other
similar work-study institutions.
Section 443. Grants for federal work-study programs
Increases the dollar amount by which a student can continue
employment in a work-study program in excess of such student's
need. Reduces the federal share of funds to 50 percent for all
types of student employment.
Requires work-study programs prioritize awarding of funds
to students with exceptional need or who are employed in work-
based learning opportunities.
Eliminates the arbitrary cap preventing more than 25
percent of an institution's work-study dollars to flow to
students working at private-sector companies.
Section 444. Flexible use of funds
Allows institutions to permit students who completed the
previous award period to continue to use unearned portions of
their work-study award from that previous year if any reduction
in the student's need upon which the award was based is
accounted for in the remaining portion and the student is
currently employed in a work-based learning position.
Section 445. Job location and development programs
Increases the percentage of funds an institution is
permitted to use from its allotment under section 442 to
establish or expand a program that locates and develops jobs,
including apprenticeships, for currently enrolled students.
Strikes a requirement that institutions provide
satisfactory assurance funds available under this section will
not be used to locate or develop jobs at an eligible
institution. Requires institutions to prioritize placing
students with the lowest expected family contribution and work-
study recipients in jobs located and developed under the
section and provide a satisfactory assurance that the
institution will locate and develop work-based learning
opportunities. Requires institutions submit to the Secretary a
report including information on the number of students employed
in work-based learning opportunities through such programs, the
number of students employed in a work-study program who
demonstrate exceptional need, and the number of students who
are employed in work-based learning opportunities through such
a program who demonstrate exceptional need.
Section 446. Community service
Repeals authority to provide additional funds to conduct
community service work-study programs.
Section 447. Work colleges
Reauthorizes the Work Colleges program. Codifies the
operational funding formula to ensure funding for Work Colleges
is allocated based on the number of participating students
proportional to other Work Colleges.
Part D--Federal Direct Student Loan Program
Section 451. Termination of Federal Direct Loan Program under Part D
and other conforming amendments
Terminates the Department's authority to make new William
D. Ford Direct Loans under Part D after September 30, 2024.
Requires all new borrowers as of July 1, 2019 to borrow
under the ONE Loan program under Part E.
Authorizes borrowers with an outstanding undergraduate loan
balance as of July 1, 2019, to continue to borrow undergraduate
loans under Part D until September 30, 2024. Requires the use
of ONE Loans for such borrowers seeking a federal loan for
graduate school.
Authorizes parent borrowers of a current dependent student
and borrowers with an outstanding graduate loan balance as of
July 1, 2019, to continue to borrow graduate loans under Part D
until September 30, 2024.
Requires Part D grandfathered borrowers that take out a ONE
Loan to forfeit eligibility for Part D Loans.
Makes technical changes to account for the expiration of
the Perkins Loan program.
Section 452. Borrower defenses
Repeals the current borrower defense regulation. Adds
additional language to require the borrower submit an
application in all instances and prohibit student loan
discharges without an application. Requires a mandatory
administrative forbearance when an application is submitted,
and requires the Secretary to inform the borrower of the
actions to be taken during the processing of an application.
Allows a one-time borrower challenge of the Secretary's
decision. Encourages the Secretary to process all applications
in a timely manner, and requires submission of a report to
Congress explaining the internal rules and procedures regarding
the processing of applications. Applies requirements to Direct
Loans made under Part D and ONE loans made under Part E,
effective July 1, 2018.
Section 453. Plain language disclosure form
Directs the Secretary to develop a consumer-friendly
disclosure form for borrowers of federal student loans and
report to Congress the methods and procedures followed when
developing the plain language disclosure form.
Section 454. Administrative expenses
Authorizes administrative expenses through Fiscal Year
2024, including account maintenance fees for guarantee
agencies.
Section 455. Loan cancellation for teachers
Makes technical changes to account for the expiration of
the Perkins Loan program.
Part E--Federal ONE Loans
Section 461. Wind-down of federal Perkins Loan program
Repeals the Perkins Loan program. Requires institutions to
submit a written request to the Secretary for a final program
audit no later than 60 days after the institution terminates
its participation in the program.
Clarifies institutions have terminated their participation
under the program if they stop servicing and collecting Perkins
Loans or if they have completed the servicing and collection of
Perkins Loans and have completed the asset distribution
requirement. Clarifies that any institution that has made
short-term loans to itself in order to disburse additional
Perkins Loans, and subsequently repaid itself the loan, shall
retain any interest earned on those Perkins Loans. Clarifies
the federal share of the Perkins Loan revolving fund will
return to the Treasury.
Section 462. Federal ONE Loan program
Establishes the Federal ONE Loan program, an unsubsidized
loan program effective for all new borrowers as of July 1,
2019.
Retains current requirements for existing and previous
Federal Family Education Loan (FFEL) and Direct Loan borrowers.
Requires ONE Loans disbursal to students on a weekly or
monthly basis, with the exception of upfront costs.
Allows third-party servicers to send an ``unvalidated''
access device to a borrower and requires the borrower's consent
to use the device before the third-party servicer is allowed to
validate the device.
Establishes annual and aggregate borrowing limits. Provides
increased limits through September 30, 2024, for current
graduate and parent PLUS loan borrowers who make the switch to
Part E borrowing and have already neared or exceeded the new
limits in order to complete their or their dependent's course
of study. Allows financial aid administrators to lower limits
for certain categories of borrowers, including those attending
less than full-time. Gives financial aid administrators
discretion to raise limits back up to the statutory caps for
certain borrowers demonstrating special circumstances or
exceptional need. Maintains the allowance to raise borrowing
limits for certain graduate health programs.
Maintains current law, using market-driven interest rates
for undergraduate and parent loans. Establishes that the
graduate interest rate is set at the graduate Stafford loan
market-driven interest rate. Eliminates the origination fee on
all Federal ONE loans. Maintains no accrual of interest for
Active Duty Service Members benefit in current law.
Pares down the number of repayment options to one standard
10-year repayment plan and one income-based repayment (IBR)
plan. Requires borrowers in IBR to pay 15 percent of their
discretionary income, without an income cap or financial
hardship eligibility standard. Prohibits the Secretary from
creating a new repayment plan or modifying an existing
repayment plan.
Establishes Federal ONE Consolidation Loans that operate
similar to Direct Consolidation Loans. Sets the interest rate
for the consolidated loan to the nearest one-eighth of 1
percent of the weighted average interest rate of the loans
being consolidated. Allows borrowers to pay according to the
ONE Consolidation Loan schedule. Authorizes a temporary loan
consolidation program through July 1, 2024.
Consolidates existing forbearances and labels all such
options as deferments. Deferments are defined as temporary
cessation of payment. Authorizes interest to accrue and
capitalize under all deferments except for administrative
deferments. Authorizes eight deferment options for ONE Loan
borrowers: (1) in-school; (2) grace period; (3) periods when
borrower is pursuing graduate fellowship or rehabilitation
education program; (4) active duty; (5) National Guard duty;
(6) medical or dental internship or residency program; (7) 120-
day deferment for defaulted borrowers who sign a new agreement
to repay their outstanding balance; and (8) administrative
deferments. Gives parent borrowers and any ONE Parent Loan
endorsers additional deferment options, including when (1)
receiving public assistance; (2) working full-time but are near
or under the poverty line; (3) experiencing economic hardship;
(4) accruing high medical expenses; and (5) seeking but unable
to find full-time employment. Prohibits the Secretary from
authorizing additional deferment options or periods of
deferment besides those authorized in statute.
Requires a plain language disclosure form.
Applies a number of current law Part B provisions to ONE
Loans, including with respect to (1) usury laws, (2) the sale
or assignment of a loan as part of a default reduction program,
(3) reports to consumer reporting agencies and institutions of
higher education, (4) legal powers and responsibilities of the
Secretary, (5) uniform administrative and claims procedures,
(6) common forms, (7) loan cancellation for deceased or
disabled borrowers, and (8) the treatment of loans in
bankruptcy proceedings. Permits loans to go through
rehabilitation twice.
Part F--Need Analysis
Section 471. Cost of attendance
Strikes the prohibition on institutions from setting a
lower cost of attendance for students receiving all or part of
their instruction through telecommunications technology.
Section 472. Simplified needs test
Updates the maximum income threshold required to qualify
for the simplified version of the FAFSA to be in line with the
Internal Revenue Service's income requirements to file the
1040EZ or 1040A tax form.
Section 473. Discretion of student financial aid administrators
Provides financial aid administrators the discretionary
authority to reduce a student's eligibility to receive
financial aid if the student's instructional delivery model
results in a substantially reduced cost of attendance to the
student.
Section 474. Definitions of total income and assets
Requires the Secretary to use data from the second
preceding tax year when determining financial aid eligibility.
Excludes 529 college savings plans from counting as assets
when calculating student need.
Part G--General Provisions Relating to Student Assistance
Section 481. Definitions of academic year and eligible program
Creates a new academic year definition for the purposes of
competency-based education programs.
Allows for competency-based education programs that use a
subscription model to be treated as term-based for the purpose
of establishing payment periods.
Decreases the minimum length of an eligible program under
Title IV to at least 300 clock hours of instruction, eight
semester hours, or 12 quarter hours, offered during a minimum
of 10 weeks.
Expands the definition of an ``eligible program'' under
Title IV to include competency-based education programs that
have been evaluated and approved by a recognized accrediting
agency.
Allows new providers of higher education, called an
``ineligible institution or organization,'' to partner with
traditional colleges and universities to provide up to 100
percent of a student's educational program. Requires accreditor
approval for partnerships where the ineligible institution or
organization provides more than 25 percent of the educational
program.
Section 482. Programmatic loan repayment rates
Creates a program-level loan repayment rate that replaces
the institutional-level CDR.
Establishes a programmatic loan repayment rate.
Provides borrowers are in positive repayment status if (1)
the borrower's loans are in repayment and less than 90 days
delinquent; (2) the borrower's loans are paid in full (but not
through consolidation); or (3) the borrower's loans are in an
in-school or military-related deferment or forbearance.
Requires those programs with three most recent official
loan repayment rates lower than 45 percent to not be considered
an eligible program for the purposes of Title IV for the
remainder of the fiscal year in which the institution is
notified of a program's sanction and for the following two
fiscal years, except in the event of a successful appeal.
Allows appeal of loan repayment rate determinations for any
program in which the institution can prove the Department erred
in calculating the rate or the participation rate of federal
student loan borrowers in the program is sufficiently low.
Requires the Secretary to report official loan repayment
rates for each program at an institution for which a loan
repayment rate is calculated each fiscal year. Requires the
Secretary provide institutions with draft loan repayment rates
for every program at least six months prior to the release of
the official rates.
Establishes a transition period from CDR calculations to
the loan repayment rate calculations.
Section 483. Master calendar
Updates the master calendar to ensure the Secretary
provides adequate notification and timely delivery of student
aid funds to institutions.
Section 484. FAFSA simplification
Allows students to provide written consent to share their
financial aid information with student-designated scholarship
granting organizations. Prohibits maintaining, selling, or
using the information for any purpose other than to award a
scholarship to the student.
Requires the Secretary to make the FAFSA available on a
mobile application no later than one year after the enactment
of the PROSPER Act and requires the online and mobile
applications to be consumer-tested. Requires the Secretary to
allow applicants to more easily import their available income
data through the Internal Revenue Service data retrieval tool.
Requires the Secretary to continue to examine whether data
provided by the Internal Revenue Service can be used to
generate an expected family contribution without additional
action on the part of the student and taxpayer. Requires the
Secretary to report to the authorizing committees annually on
the progress of FAFSA simplification efforts and the security
of the data retrieval tool.
Section 485. Student eligibility
Codifies the current regulation to require institutional
satisfactory academic progress policies include a quantitative
standard that requires students to be on pace to graduate
within the maximum timeframe for completion in order to
continue federal student aid eligibility.
Restores federal student aid eligibility for students
without a high school credential who have been determined by
their institution as having the ability to benefit from the
education or skills development provided by the institution
upon satisfactory completion of six credit hours or the
equivalent of postsecondary education. Removes the current
eligible career pathways requirement to allow more students
without high school credentials who have demonstrated they can
handle the rigor of higher education to participate in federal
financial aid programs.
Clarifies students who have completed a secondary school
education in a home school setting that is treated as a home
school or private school under state law or provided by a
school operating as a nonprofit corporation that offers a
program of study determined acceptable for admission at an
institution of higher education are eligible for federal
student aid under Title IV.
Removes the current eligibility link between the federal
student aid system and Selective Service registration for
students who are 26 years of age or older and no longer able to
register for the Selective Service.
Section 486. Statute of limitations
Makes technical changes.
Section 487. Institutional refunds
Streamlines aid calculations to ensure students do not earn
all of their aid until they actually complete the payment
period for which they are enrolled.
Shifts the burden of repaying unearned aid to the
institution when a student withdraws from an institution, and
allows institutions to require a student to pay up to 10
percent of the institution's obligation.
Requires institutions to return unearned aid, first to Pell
Grants and then to loans, no later than 60 days from the
withdrawal determination.
Clarifies which institutions are required to take
attendance and how withdrawal dates are determined by the
institution.
Section 488. Information disseminated to prospective and enrolled
students
Requires disclosures to students and prospective students
be published on the institution's website. Streamlines
disclosure requirements.
Requires institutions to have a policy prohibiting
copyright infringement and to publish such policies and related
sanctions on the institution's website.
Requires exit counseling include information on the
borrower's outstanding loan balance, anticipated monthly
payments under various repayment plans, the grace period
preceding repayment, and organizations servicing the borrower's
loans.
Clarifies that institutions are required to make timely
warnings to the campus community about crimes that pose a
serious and continuing threat to safety and gives institutions
the discretion to make such determinations.
Provides institutions clear authority to respect requests
from a law enforcement agency or a prosecutor to delay or
suspend investigations or institutional disciplinary
proceedings regarding campus sexual assault without being
penalized.
Requires crime reporting under the Clery Act be consistent
with the definitions used by the Department of Justice's
Uniform Crime Reporting (UCR) Program where possible. Provides
a safe harbor for institutions that make a reasonable and good
faith effort to report crimes according to a definition
provided by the Secretary when there is no UCR Program
definition available. Requires institutions to report crimes
according to the UCR Program's Hierarchy Rule.
Requires all institutional investigations or disciplinary
processes invoked to address incidents of sexual violence to be
prompt, impartial, and fair to both the accuser and the
accused.
Allows an institution to determine the standard of evidence
it deems most appropriate for institutional disciplinary
proceedings involving sexual assault, as long as it is not
arbitrary or capricious and is applied consistently for all
proceedings and requires the standard chosen by the institution
be clearly communicated to students.
Requires the Secretary to create modules to educate
officials conducting investigations and disciplinary
proceedings on issues related to sexual assault and how to
conduct fair investigations and proceedings. Requires the
modules be developed in consultation with campus experts, local
law enforcement, victim advocates, due process experts, and
other experts. Requires modules be available to colleges and
universities and deems any institution that chooses to use them
in compliance with its education obligations.
Streamlines fire safety-related reporting requirements by
requiring institutions to publish an annual fire safety report
that includes fire safety practices and standards, statistics
on fire related incidents or injuries, and preventative
measures or technologies.
Streamlines missing person procedures by requiring
institutions to notify the student's designated emergency
contact and law enforcement and, if the student is under 18,
the students' parent if the student goes missing. Allows
institutions to use existing general emergency contact
information.
Requires interactive, online or in-person, student loan
counseling provided by the institution's financial aid office
that is tailored to a borrower's individual situation. Requires
annual counseling before an individual takes out a loan so the
borrower has the most up-to-date information about their
present and future loan balance and likely payment schedule.
Requires the annual counseling to include recommendations for
students to exhaust available grant, work-study, and
scholarship assistance before taking out loans. Requires
information to be shared regarding the treatment of federal and
private loans in bankruptcy. Requires the counseling to include
a notice that students and parents are not required to accept
the full amount of the loan they are offered and to include
information on any outstanding federal loan balance the
borrower may have. Requires borrowers receive state-specific
information on the average income and employment status of
individuals based on various levels of educational attainment,
as well as an introduction to the Financial Literacy and
Education Commission's financial management resources.
Requires Pell Grant recipients to receive annual counseling
that includes the following: the terms and conditions of their
grant; the approved educational expenses the grant can be
applied to; the maximum length of time a student is eligible to
receive Pell Grants; the level of assistance a student is
eligible to receive; why a student may need to repay a Pell
Grant; and how a student may seek additional assistance due to
a change in his or her financial circumstances.
Requires the Secretary to maintain a consumer-tested,
online counseling tool that institutions can use to provide the
required counseling to their students. Requires the Secretary
keep a record of the individuals who have received counseling
using the tool administered by the Department and notify
applicable institutions when an individual has completed the
counseling.
Adds a sense of Congress that hazing is dangerous, should
not be allowed on any campus, and institutions should have
clear policies prohibiting hazing, take seriously any threats
or acts of harm, and ensure law enforcement has access to
investigate any crimes. Requires all policies and procedures
related to hazing on campus be available and clearly posted for
students, faculty, and administrators.
Section 489. Early awareness of financial aid eligibility
Requires the Secretary, in consultation with states,
institutions of higher education, secondary schools, and
college access programs, to notify secondary school students no
later than the students' sophomore year of the availability of
federal financial aid, including estimates of the amounts of
grant and loan aid an individual may be eligible to receive.
Encourages states, institutions of higher education, and
other stakeholders to share best practices on disseminating
information about financial assistance and requires the
Secretary to create an online platform to share such best
practices.
Directs the Secretary to maintain a consumer-tested early
estimator tool--available online and through a mobile
application--that will give students and parents an estimate of
a student's potential federal aid eligibility. Prohibits the
Secretary from storing any data provided by individuals
accessing the tool.
Instructs the Secretary to develop and annually update an
electronic Pell Grant table containing information on the
percentage of students at a college who received a Pell Grant.
Requires the Pell Grant table to link to the early estimator
tool. Prohibits the Secretary from requiring a state to
participate in the activities or disseminate the materials
described in this section.
Section 490. Distance Education Demonstration Programs
Repeals the Distance Education Demonstration Programs.
Section 491. Contents of program participation agreements
Makes several conforming changes.
Permits compensation to a third-party entity that provides
a set of services to the institution that includes student
recruitment services. Allows compensation to employees of an
institution or parent company when students successfully
complete their educational programs.
Streamlines requirements for the distribution of voter
registration forms.
Repeals the requirement that proprietary institutions
receive at least 10 percent of their revenue from sources other
than federal student aid programs.
Section 492. Regulatory relief and improvement
Requires the Secretary to select institutions for voluntary
participation in the Quality Assurance Program and to review
and evaluate the program conducted by each participating
institution at least once every two years.
Requires the Secretary to notify the authorizing committees
prior to announcing a new experimental site and inviting
institutions to participate with a description of the proposed
experiment, the rationale for the experiment, a list of
institutional requirements expected to be waived, and the legal
authority for such waivers. Requires the Secretary to address
all congressional comments in writing before proceeding with
the proposed experimental site. Requires the Secretary to
report annually on all ongoing experimental sites and prohibits
the Secretary from conducting any experimental sites in any
year in which an annual report for the previous year is not
submitted to the authorizing committees.
Section 493. Transfer of Allotments
Makes conforming changes.
Section 494. Administrative Expenses
Makes conforming changes.
Section 494A. Repeal of Advisory Committee
Repeals the Advisory Committee on Student Financial
Assistance.
Section 494B. Regional meetings and negotiated rulemaking
Outlines specific procedures the Secretary must follow when
issuing federal regulations under Title IV and provides
stakeholders and the authorizing committees adequate time to
review regulations.
Section 494C. Report to Congress
Requires the Secretary to submit a report to the
authorizing committees no later than 180 days after the
enactment of the PROSPER Act detailing how the Department is
detecting and combatting fraud in all income-driven repayment
plans under Title IV.
Section 494D. Deferral of loan repayment following active duty
Makes conforming changes.
Section 494E. Contracts; matching program
Clarifies that originating, servicing, and collecting of
federal student loans are not subject to state or local
government requirements.
Requires the Secretary to work with servicing entities and
provide a common performance manual.
Allows the Secretaries of Education and Veterans Affairs to
carry out a computer matching program to identify those
veterans eligible for death or permanent disability student
loan discharges.
Makes technical changes.
Part H--Program Integrity
Section 495. Repeal of and Prohibition on State Authorization
Regulations
Repeals the state authorization regulation and prohibits
the Secretary from further regulating in this area.
Clarifies institutions must demonstrate authority to
operate only in those states in which the institution maintains
a physical location.
Clarifies religious institutions shall be treated as
legally authorized to operate if the institution is recognized
as a religious institution by the state and is exempt from
state requirements to be authorized.
Section 496. Recognition of Accrediting Agency or Association
Allows any agency or association with a voluntary
membership and having the principal purpose of accrediting
institutions to apply for recognition by the Secretary.
Requires all accrediting agencies wishing to be recognized by
the Secretary to meet the same criteria, including being
separate and independent from any related/associated/affiliated
trade association or membership organization.
Strikes provisions that single out institutions offering
distance education, and requires accreditors to demonstrate the
ability to review, evaluate, and assess the quality of any
instruction delivery model or method the agency seeks to
include within its scope of recognition. Requires accrediting
agencies to ensure distance education institutions have
processes in place to ensure the student who registers in a
course or program is the same student who completes the program
and receives the academic credit.
Requires any accreditation agency that accredits
competency-based education have policies in place that will
effectively address the quality of competency-based education
programs. Requires accreditors have standards that assess the
institution's success in relation to the institution's mission
with respect to student learning and educational outcomes.
Requires accreditors have a system in place where they annually
identify institutions or programs accredited by the agency that
may be experiencing difficulties accomplishing their missions
with respect to their established student learning and
educational outcome goals. Requires accrediting agencies have
at least one representative from the business community on the
agency's board. Requires accreditors to review only substantive
changes that significantly impact the educational mission or
programs offered at an institution and prohibits the Secretary
from further regulation in this area. Requires accreditors to
post all actions taken by the agency and a summary of why any
adverse actions were taken. Requires accreditors to post on
their websites for public inspection a list of all institutions
accredited by the agency, the year the accreditation was
granted, the date of the most recent comprehensive evaluation,
and the anticipated date of the next evaluation.
Allows institutions not under sanction by their accreditor
or a state agency to change accreditors without the approval of
the Secretary, provided the institution notifies the Secretary
of the change.
Clarifies the religious mission of an institution may be
reflected in the institution's beliefs, speech, standards of
conduct, and policies, including any policies regarding
admission, retention, employment, housing, or student conduct.
Clarifies an accreditor's standard fails to respect an
institution's religious mission when the institution determines
that the standard induces, pressures, or coerces the
institution to act contrary to, or to refrain from acting in
support of, any aspect of its religious mission. Provides
institutions the option to file a complaint with the Secretary
if the institution believes an adverse action of an accrediting
agency fails to respect the institution's religious mission.
Provides accreditors with clear authority to undertake
differentiated reviews that reflect the institution's history
of meeting accreditation standards and record of performance on
key metrics.
Allows waivers of accreditor requirements if the accreditor
can demonstrate that such waiver is necessary to enable an
institution of higher education or program accredited by the
agency or association to implement innovative practices while
still ensuring academic integrity and quality.
Section 497. Eligibility and certification procedures
Reforms the process by which the Secretary determines if an
institution is financially responsible. Provides for
alternative ways of determining an institution's financial
responsibility beyond the federally calculated composite score
by relying more extensively on existing industry and
professional standards. Ensures composite scores are calculated
in accordance with generally accepted auditing standards.
Provides official review, appeal, and transparency processes
for institutions that continue to use the federal composite
score. Establishes a timeline for institutions to correct
financial weaknesses. Limits the Secretary's authority to
require letters of credit from institutions.
Increases to 36 months the amount of time an institution
can be provisionally certified when its accreditor loses
federal recognition.
Requires the Secretary provide a detailed written
justification for a program review, when practicable. Requires
the Secretary to conduct, respond to, and conclude program
reviews within specified timeframes.
TITLE V--DEVELOPING INSTITUTIONS
Section 501. Hispanic-serving institutions
Adds additional allowable uses of funds to include pay for
success initiatives, dual enrollment, the development of
career-specific programs, and community outreach programs.
Allows institutions that use grant funds to establish or
increase an endowment to use the income from such endowment to
provide scholarships to students.
Requires a student completion rate of at least 25 percent
in order to be eligible for grant funding, calculated by
counting a student as completed if that student (1) graduates
within 150 percent of the normal time for completion or (2)
transfers from a program that provided substantial preparation
within 150 percent normal time for completion.
Requires institutions to return to the Treasury any grant
funds not expended after 10 years.
Section 502. Promoting postbaccalaureate opportunities for Hispanic
Americans
Incorporates section 501 allowable uses of funds and adds
an additional allowable use for institutions to create
innovative learning models and create or improve facilities for
Internet or other innovative technologies.
Requires institutions to return to the Treasury any grant
funds not expended after 10 years.
Clarifies no institution eligible for funds under this
title can receive funds under Part A or Part B of Title III.
Section 503. General provisions
Makes technical and conforming changes and authorizes
appropriations for all programs for each of Fiscal Years 2019
through 2024.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
Section 601. International and foreign language studies
Allows state and local education agencies along with
postsecondary programs or departments in foreign language, area
studies, or other international fields to participate in summer
institutes.
Requires institutions provide adequate assurances to the
Secretary they will comply with the requirement to explain how
the activities funded by the grant will reflect a diverse
perspective and a wide range of views to generate debate on
world regions and international affairs.
Repeals the Undergraduate International Studies and Foreign
Language Program.
Repeals the American Overseas Research Centers program.
Section 602. Business and international education programs
Requires institutions to provide adequate assurances to the
Secretary that it will comply with the requirement to explain
how the activities funded by the grant will reflect a diverse
perspective and a wide range of views to generate debate on
world regions and international affairs. This requirement would
be included in the evaluation, review, and approval process for
initial funding and continuation awards.
Section 603. Repeal of Assistance Program for Institute for
International Public Policy
Repeals Part C of Title VI, the Assistance Program for the
Institute for International Public Policy.
Section 604. General provisions
Mandates the Secretary submit to Congress, and make
publicly available, an annual report identifying the efforts
grantees took to comply with the requirement to present a
diverse perspective and a wide range of views when generating
debate on world regions and international affairs. Requires the
report include any technical assistance, regulatory guidance,
or monitoring conducted by the Secretary.
Requires disclosures of foreign gifts including the name of
the person, institution, or agency giving the gift and the
inclusion of the fair market value of services provided by
staff, textbooks, and other in-kind gifts in the aggregate
dollar amount. Requires the Secretary to make disclosure
reports electronically available for public viewing.
Requires the Secretary make continuation awards only after
determining that the grantee is making satisfactory progress in
carrying out the grant.
Requires grantees not promote any biased views that are
discriminatory toward any group, religion, or population of
people.
Authorizes the title for each of Fiscal Years 2019 through
2024 and repeals all unfunded programs.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Section 701. Graduate education programs
Repeals unfunded programs.
Authorizes appropriations for the Graduate Assistance in
Areas of National Need program for each of Fiscal Years 2019
through 2024.
Authorizes appropriations for the HBCU Master's degree
programs for each of Fiscal Years 2019 through 2024.
Makes a number of conforming changes.
Section 702. Repeal of Fund for the Improvement of Postsecondary
Education
Repeals Part B of Title VII, the Fund for the Improvement
of Postsecondary Education.
Section 703. Programs for students with disabilities
Repeals unfunded programs and authorizes appropriations for
currently funded programs for each of Fiscal Years 2019 through
2024. Authorizes an independent commission to develop voluntary
guidelines for accessible postsecondary electronic
instructional materials and related technologies.
Section 704. Repeal of College Access Challenge Grant Program
Repeals Part E of Title VII, the College Access Challenge
Grant Program.
TITLE VIII--OTHER REPEALS
Section 801. Repeal of additional programs
Repeals all Title VIII programs.
Repeals Section 802 of the Higher Education Opportunity Act
(National Center for Research in Advanced Information and
Digital Technologies) and Section 803 of the Higher Education
Opportunity Act (pilot program for course material rental).
Repeals Section 821 of the Higher Education Amendments of
1998 (Grants to States for Workplace and Community Transition
Training for Incarcerated Youth Offenders) and Section 841 of
the Higher Education Amendments of 1998 (Underground Railroad
educational and cultural program).
Repeals Section 1543 of the Higher Education Amendments of
1992 (Olympic Scholarships).
TITLE IX--AMENDMENTS TO OTHER LAWS
Part A--Education of the Deaf Act of 1986
Section 901. Education of the Deaf Act of 1986
Makes the following changes to the Board of Directors for
Gallaudet University: increases the total number of members
from 21 to 23; equalizes the number of Senators and Members of
the House of Representatives on the Board; increases the number
of additional Board members from 18 to 19; and changes the
appointment process for the Board members from the House and
Senate to ensure bipartisan representation.
Allows Gallaudet University to meet the relevant
requirements of the Elementary and Secondary Education Act for
the Laurent Clerc National Deaf Education Center on its own or
in cooperation with a state.
Repeals the Cultural Experiences Grants program. Repeals
the separate authorization for federal monitoring and
reporting. Repeals the separate authorization for federal
endowment payments and permits Gallaudet University and the
National Technical Institute for the Deaf (NTID) to reserve
appropriated funds for the institutions' endowments. Repeals
the National Study on the Education of the Deaf.
Authorizes appropriations for Gallaudet University and NTID
for each of Fiscal Years 2019 through 2024.
Makes technical amendments.
Part B--Tribally Controlled Colleges and Universities Assistance Act of
1978
Section 911. The Tribally Controlled Colleges and Universities
Assistance Act of 1978
Reauthorizes the Tribally Controlled Colleges and
Universities programs and makes technical changes to update
terminology.
Strikes the definition of ``satisfactory progress toward a
degree or certificate'' to align with the removal of this
requirement in the 2008 reauthorization.
Updates the process for conducting a student count to
accurately reflect students in short-term programs and include
students who are dually-enrolled in high school and college.
Repeals the endowment program for Tribal Colleges and
Universities.
Changes the name of Title II to the Dine College Act.
Authorizes appropriations for the Tribally Controlled
Colleges and Universities Assistance Act of 1978 for each of
Fiscal Years 2019 through 2024.
Part C--General Education Provisions Act
Section 921. Release of education records to facilitate the award of a
recognized postsecondary credential
Amends section 444(b) of the General Education Provisions
Act to allow for the release of education records of a student
to an institution of postsecondary education in which the
student was previously enrolled to facilitate the award of a
recognized postsecondary credential upon the condition that the
student provides written consent prior to receiving such
credential.
Explanation of Amendments
The amendments, including the amendment in the nature of a
substitute, are explained in the body of this report.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. H.R. 4508 reforms the postsecondary education system by
promoting innovation, access, and completion; simplifying and
improving student aid; empowering students and families to make
informed decisions; and ensuring strong accountability and a
limited federal role.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. This issue is addressed in the CBO letter.
Earmark Statement
H.R. 4508 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of House Rule XXI.
Roll Call Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for and against.
Statement of General Performance Goals and Objectives
In accordance with clause (3)(c) of House Rule XIII, the
goals of H.R. 4508 are to reform the postsecondary education
system by promoting innovation, access, and completion;
simplifying and improving student aid; empowering students and
families to make informed decisions; and ensuring strong
accountability and a limited federal role.
Duplication of Federal Programs
No provision of H.R. 4508 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The committee estimates enacting H.R. 4508 does not
specifically direct the completion of any specific rule makings
within the meaning of 5 U.S.C. 551.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the committee's oversight findings and recommendations are
reflected in the body of this report.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the committee has received
the following estimate for H.R. 4508 from the Director of the
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 6, 2018.
Hon. Virginia Foxx,
Chairwoman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Madam Chairwoman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4508, the
Promoting Real Opportunity, Success, and Prosperity through
Education Reform Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Justin
Humphrey or Leah Koestner.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 4508--Promoting Real Opportunity, Success, and Prosperity through
Education Reform Act
Summary: H.R. 4508 would reauthorize the Higher Education
Act of 1965 (HEA) and amend institutional and student
eligibility for several major student aid programs, including
the William D. Ford Federal Direct Loan Program and the Federal
Pell Grant Program. It also would reauthorize funding for most
other federal higher education programs. Major provisions of
the bill would:
Amend repayment options for borrowers in the
federal student loan program and eliminate loan
forgiveness for certain borrowers who are employed in
the public sector (direct spending savings of $40.0
billion over the 2019-2027 period);
Amend federal loan programs for
undergraduate borrowers, in particular by eliminating
the subsidized loan program and increasing loan limits
in the unsubsidized loan program (direct spending
savings of $18.5 billion over the 2019-2027 period);
Eliminate origination fees paid by student
loan borrowers (direct spending costs of $14.5 billion
over the 2019-2027 period);
Provide an additional $300 to Pell grant
recipients who enroll in at least 15 academic credits
per semester (direct spending costs of $7.3 billion
over the 2018-2027 period); and
Amend or repeal restrictions on
institutional eligibility for federal student aid for
certain types of schools, the largest of which would
repeal the definition of distance education and
eliminate the cap on the percentage of revenues that
proprietary schools can receive from the Department of
Education (direct spending costs of $1.9 billion and
$2.0 billion, respectively).
Effects on the federal budget
Because enacting the bill would affect direct spending,
pay-as-you-go procedures apply. Enacting H.R. 4508 would not
affect revenues. CBO estimates that enacting H.R. 4508 would
not increase net direct spending or on-budget deficits in any
of the four consecutive 10-year periods beginning in 2028.
Direct Spending. CBO estimates that enacting the bill would
increase direct spending by an estimated $0.6 billion in 2018,
but would reduce direct spending by $2.2 billion over the 2018-
2022 period and $14.6 billion over the 2018-2027 period. Almost
all of the effect on direct spending would result from changes
to student loans and Pell grants. CBO estimates that changes to
student lending would reduce direct spending by $26.3 billion
over the 2018-2027 period and changes to the mandatory portion
of the Pell grant program would increase direct spending by
$12.2 billion over the same period (the bulk of funding for
Pell grants is discretionary and is not included in that
total).
The estimates of changes to federal student loans are based
on procedures outlined in the Federal Credit Reform Act of 1990
(FCRA). On a fair-value basis, which more fully accounts for
the cost of the risk the government takes on in its student
loan programs, CBO estimates that changes to student loans
would instead reduce direct spending by $16.9 billion over the
2018-2027 period. More details about Federal Credit Reform Act
and fair-value estimates are discussed under ``Background'' and
``Fair-Value Estimating.''
Spending Subject to Appropriation. H.R. 4508 would
reauthorize many discretionary programs for higher education
through fiscal year 2024. Although almost all of the underlying
authorizations have expired, many of the programs have
continued to receive appropriations. Most of the authorizations
would automatically be extended through 2025 under the General
Education Provisions Act (GEPA). The bill also would amend
several other laws, including the Education for the Deaf Act
and the Tribally Controlled Colleges and Universities
Assistance Act.
CBO estimates that H.R. 4508 would authorize the
appropriation of $112.0 billion over the 2018-2022 period and
$210.4 billion over the 2018-2027 period. Assuming
appropriation of the estimated amounts, CBO projects that
enacting the bill would increase discretionary spending by
$87.5 billion and $210.1 billion, respectively, over the two
periods. The bulk of that amount ($169.6 billion over the 2018-
2027 period) would result from reauthorizing and amending the
discretionary portion of the Pell grant program.
Mandates
Section 4 of the Unfunded Mandates Reform Act (UMRA)
excludes from the application of that act any legislative
provisions that would enforce constitutional rights of
individuals. CBO has determined that sections 111, 115, and 117
of H.R. 4508 fall within that exclusion because they would
enforce the rights of free speech and religion. None of the
remaining provisions of H.R. 4508 would impose
intergovernmental or private-sector mandates as defined in
UMRA.
Estimated Cost to the Federal Government: The estimated
budgetary effects of H.R. 4508 are shown in Table 1. The costs
of the legislation fall within budget function 500 (education,
training, employment, and social services).
TABLE 1--BUDGETARY EFFECTS OF H.R. 4508, THE PROMOTING REAL OPPORTUNITY, SUCCESS, AND PROSPERITY THROUGH EDUCATION REFORM ACT
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in billions of dollars--
----------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-207
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Estimated Budget Authority......................... 1.2 0.2 -1.2 -1.7 -2.0 -2.4 -2.9 -3.4 -3.6 -3.8 -3.4 -19.5
Estimated Outlays.................................. 0.6 0.7 -0.8 -1.2 -1.5 -1.8 -2.2 -2.6 -2.8 -3.0 -2.2 -14.6
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level...................... 0.3 19.7 29.7 30.8 31.5 32.1 32.8 33.4 0.0 0.0 112.0 210.4
Estimated Outlays.................................. 0.1 5.4 21.4 29.6 31.0 31.7 32.3 32.9 24.5 1.28 87.5 210.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
Background: Most of the assistance the federal government
provides to students comes from student loans and Pell grants.
Federal student loan programs
Under the William D. Ford Direct Loan Program, created in
1994, the federal government provides loans to undergraduate
and graduate students and to the parents of undergraduate
students. The government serves as the lender for all borrowers
but contracts with private entities to service the loans.\1\
CBO estimates that in fiscal year 2018, the federal government
will make more than 17 million new loans to students and
parents, totaling about $100 billion.
---------------------------------------------------------------------------
\1\Before July 1, 2010, the federal government also provided loan
guarantees to financial institutions to provide federal student loans
through the Federal Family Education Loan Program. The Health Care and
Education Reconciliation Act of 2010, which was signed into law on
March 30, 2010, required all new loans originated after July 1, 2010,
to be in the direct loan program.
---------------------------------------------------------------------------
Federal Credit Reform Act Estimate. As required under FCRA,
most of the costs of the federal student loan programs are
estimated on a net-present-value basis. A present value is a
single number that expresses a flow of current and future
payments in terms of an equivalent lump sum received or paid
today. Under credit reform, the present value of all loan-
related cash flows is calculated by discounting those expected
cash flows to the year of disbursement, using the rates for
comparable maturities on Treasury borrowing. (For example, the
cash flow for a one-year loan is discounted using the Treasury
rate for a one-year, zero-coupon note.) The costs for the
federal administration of student loans are estimated on a cash
basis. Unless otherwise noted, all estimated costs related to
the federal student loan programs are shown using FCRA-
estimating procedures.
Fair-Value Estimate. Section 5106 of the Conference Report
of the Concurrent Resolution on the Budget for Fiscal Year 2017
requires any CBO cost estimate of a student loan provision
under FCRA procedures to also include a fair-value estimate of
the provision's costs.
Fair value estimates are based on market values--market
prices when those prices are available or approximations of
market prices when directly comparable figures are
unavailable--which more fully account for the cost of the risk
the government takes on in its student loan programs. To
account for that risk, CBO discounts the same projected cash
flows as under FCRA but uses a market-based discount rate.\2\
The differences between fair-value and FCRA estimating
procedures for the student loan program are discussed under
``Fair-Value Estimating.''
---------------------------------------------------------------------------
\2\For more details on fair-value accounting, see Congressional
Budget Office, Fair-Value Estimates of the Cost of Selected Federal
Credit Programs for 2015 to 2024 (May 2014) www.cbo.govipublication/
45383, and Fair-Value Accounting for Federal Credit Programs (March
2012) www.cbo.gov/publication/43027.
---------------------------------------------------------------------------
Federal Pell Grant Program
The Federal Pell Grant Program, created in 1972, provides
need-based grants to undergraduate postsecondary students. It
is the largest source of federal grant aid for postsecondary
education. Unlike federal student loans, the grants are not
repaid. Under current law, CBO projects that in academic year
2018-2019, 7.5 million students will receive grants that
average $3,900 for a total federal cost of $29.3 billion.
Funding Sources. Although Pell grants are funded with both
discretionary and mandatory appropriations, the main source of
funds is an annual discretionary appropriation. Additional
mandatory funds, which are provided automatically on the basis
of a founula, support a ``mandatory add-on,'' which increases
the award amount above the maximum set in the annual
appropriation act.
Current Awards. For the 2018-2019 academic year, which
begins on July 1, 2018, the maximum Pell grant will be $5,920.
Of that, $4,860 will be supported with discretionary funds and
$1,060 will be supported with mandatory funds.\3\
---------------------------------------------------------------------------
\3\ Additional mandatory funding is provided in section
401(b)7(A)(iv) of the Higher Education Act of 1965. That budget
authority is used to augment the funding provided in annual
appropriations for the discretionary Pell grant program.
---------------------------------------------------------------------------
Basis of Estimate for Direct Spending: For this estimate,
CBO assumes that H.R. 4508 will be enacted by July 1, 2018. CBO
estimates that enacting the bill, which (among other changes)
would amend the William D. Ford Federal Direct Loan Program and
the Federal Pell Grant Program and eliminate the Teacher
Education Assistance for College and Higher Education (TEACH)
Grant Program, would increase direct spending by $0.6 billion
in 2018, but would reduce direct spending by $2.2 billion over
the 2018-2022 period and $14.6 billion over the 2018-2027
period (see Table 2).
Over the 2018-2027 period, the bill would decrease direct
spending in the student loan program by $26.3 billion, increase
direct spending in the Pell grant program by $12.2 billion, and
decrease direct spending in the TEACH Grant Program by $0.4
billion, CBO estimates. Each provision (or set of provisions as
listed in Table 3) is estimated separately relative to current
law. The estimated budgetary effects of each provision are also
shown in that table.
Because funding for Pell grants comes from mandatory and
discretionary sources, the budgetary effects of changes made to
Pell grants in H.R. 4508 are discussed in two sections. Changes
to the mandatory add-on are discussed in this section and
discretionary-funding effects are discussed under ``Basis of
Estimate for Spending Subject to Appropriation.'' Details for
each policy provision are described in this section including
the total effect on Pell grant recipients.
Federal One Loan Policies
Most of the bill's effects on direct spending would arise
from the creation of the new Federal One Loan Program and other
changes to the student loan programs or from changes in
institutional or student eligibility for Pell grants and direct
student loans.
TABLE 2.--ESTIMATED EFFECTS OF H.R. 4508 ON DIRECT SPENDING, BY PROGRAM
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars
------------------------------------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-2027
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Federal Student Loan Program:
Estimated Budget Authority................................... 385 -690 -2,220 -2,875 -3,300 -3,785 -4,390 -4,945 -5,170 -5,400 -8,700 -32,390
Estimated Outlays............................................ 250 -300 -1,565 -2,270 -2,700 -3,115 -3,605 -4,090 -4,355 -4,545 -6,585 -26,295
Federal Pell Grant Program:
Estimated Budget Authority................................... 822 999 1,144 1,278 1,391 1,454 1,513 1,558 1,590 1,646 5,634 13,394
Estimated Outlays............................................ 309 1,007 807 1,175 1,307 1,407 1,469 1,525 1,566 1,604 4,605 12,176
TEACH Grants:
Estimated Budget Authority................................... -29 -62 -75 -71 -57 -36 -35 -35 -35 -35 -294 -470
Estimated Outlays............................................ -8 -38 -65 -74 -67 -51 -36 -35 -35 -35 -252 -444
Total Changes:
Estimated Budget Authority............................... 1,178 247 -1,151 -1,668 -1,966 -2,367 -2,912 -3,422 -3,615 -3,789 -3,360 -19,466
Estimated Outlays........................................ 551 669 -823 -1,169 -1,460 -1,759 -2,172 -2,600 -2,824 -2,976 -2,232 -14,563
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Memorandum: Estimated changes in direct spending with changes to the Federal Student Loan Program estimated under fair value.
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Federal Student Loan Program Under Fair Value:
Estimated Budget Authority................................... 550 -460 -1,600 -2,000 -2,260 -2,590 -3,015 -3,390 -3,485 -3,495 -5,770 -21,745
Estimated Outlays............................................ 475 25 -975 -1,495 -1,825 -2,080 -2,405 -2,760 -2,910 -2,905 -3,795 -16,855
Total Changesa:
Estimated Budget Authority............................... 1,343 477 -531 -793 -926 -1,172 -1,537 -1,867 -1,930 -1,884 -430 -8,821
Estimated Outlays........................................ 776 994 -233 -394 -585 -724 -972 -1,270 -1,379 -1,336 558 -5,123
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Estimates are relative to CEO's June 2017 baseline, Components may not sum to totals because of rounding. TEACH = Teacher Education Assistance for College and Higher Education Grant Program.
aTotal changes equal the effects on the Federal Pell Grant Program, the TEACH Grants, and the fair value estimate of the Federal Student Loan Program.
TABLE 3.--ESTIMATED EFFECTS OF H.R. 4508 ON DIRECT SPENDING, BY PROVISION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays by fiscal year, in millions of dollars
-----------------------------------------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-2027
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING OUTLAYS
One Loan Program:
Undergraduate Student Borrowing......................... 0 -395 -1,090 -1,580 -1,870 -2,140 -2,480 -2,830 -3,005 -3,115 -4,935 -18,505
Graduate Student Borrowing.............................. 0 115 260 320 340 370 410 465 500 525 1,035 3,305
Parent Borrowing........................................ 0 135 370 540 625 700 785 875 910 925 1,670 5,865
Repayment Options....................................... 0 -1,095 -2,610 -3,575 -4,145 -4,665 -5,260 -5,855 -6,235 -6,520 -11,425 -39,960
Origination Fees........................................ 0 400 940 1,295 1,510 1,700 1,920 2,130 2,260 2,350 4,145 14,505
Other Student Loan Changes:
Borrower Defense to Repayment........................... 215 415 380 305 290 300 310 320 335 350 1,605 3,220
Closed School Discharges................................ -40 -80 -90 -90 -95 -100 -100 -105 -110 -115 -395 -925
Rehabilitation Loans.................................... 50 50 50 50 50 50 50 50 50 50 250 500
Funds to Administer Loan Program........................ 0 27 16 5 2 0 0 0 0 0 50 50
Foreign Schools......................................... * -3 -3 -3 -3 -5 -5 -5 -10 -10 -12 -47
Parent Loans and IDR.................................... -10 -4 -4 -4 -4 -4 -4 -4 -4 -4 -26 -46
Data Match to Determine Disability Discharges........... 10 1 1 1 1 1 1 1 1 1 14 19
Institutional Eligibility for Federal Aid:
Distance Education:
Federal Student Loans............................... * 10 20 45 75 105 130 150 160 165 150 860
Pell Grants......................................... 1 10 29 54 88 122 150 176 191 196 182 1,017
Total........................................... 1 20 49 99 163 227 280 326 351 361 332 1,877
90/10 Rule:
Federal Student Loans............................... 10 45 80 100 110 105 120 130 130 135 345 965
Pell Grants......................................... 10 46 82 108 119 121 123 125 127 129 366 990
Total........................................... 20 91 162 208 229 226 243 255 257 264 711 1,955
Short-Term Programs:
Federal Student Loans............................... 3 5 10 10 10 10 15 15 15 15 38 108
Pell Grants......................................... 6 24 28 33 37 40 41 42 44 46 129 343
Total........................................... 9 29 38 43 47 50 56 57 59 61 167 451
Gainful Employment:
Federal Student Loans............................... 3 10 20 20 25 25 25 30 30 30 78 218
Pell Grants......................................... 3 13 22 29 32 32 33 34 34 35 99 267
Total........................................... 6 23 42 49 57 57 58 64 64 65 177 485
Loan Repayment Rate:
Federal Student Loans............................... -5 -10 -10 -20 -20 -15 -15 -15 -20 -20 -65 -150
Pell Grants......................................... 0 0 0 -10 -31 -15 -15 -15 -16 -16 -41 -117
Total........................................... -5 -10 -10 -30 -51 -30 -30 -30 -36 -36 -106 -267
Competency Based Education:
Federal Student Loans............................... * 3 3 5 5 10 10 10 10 15 16 71
Pell Grants......................................... 1 5 7 9 10 13 15 18 21 24 32 123
Total........................................... 1 8 10 14 15 23 25 28 31 39 48 194
Liberal Arts:
Federal Student Loans............................... * 5 5 10 10 10 15 15 15 15 30 100
Pell Grants......................................... * 2 6 10 12 12 12 13 13 13 29 92
Total........................................... * 7 11 20 22 22 27 28 28 28 59 192
Ineligible Program Partnerships:
Federal Student Loans............................... * 3 3 3 5 5 10 15 20 25 14 89
Pell Grants......................................... * 1 1 3 4 6 9 12 18 25 9 78
Total........................................... * 4 4 6 9 11 19 27 38 50 23 167
Accrediting Agencies:
Federal Student Loans............................... -25 15 10 5 5 5 5 5 5 10 10 40
Pell Grants......................................... 7 27 20 14 11 8 8 8 8 9 80 121
Total........................................... -18 42 30 19 16 13 13 13 13 19 90 161
Grant Amounts and Student Eligibility for Federal Aid:
Pell Grant Bonus:
Pell Grants......................................... 201 745 779 785 809 818 818 810 796 784 3,319 7,345
Return of Title IV Aid:
Federal Student Loans............................... 3 10 10 10 10 10 10 10 15 15 43 103
Pell Grants......................................... -17 -59 -55 -53 -54 -55 -56 -56 -58 -60 -238 -522
Total........................................... -14 -49 -45 -43 -44 -45 -46 -46 -43 -45 -195 -419
Ability to Benefit:
Federal Student Loans............................... 3 5 10 10 10 10 10 15 15 15 38 103
Pell Grants......................................... 3 11 17 21 21 22 22 22 23 23 73 184
Total........................................... 6 16 27 31 31 32 32 37 38 38 111 287
Selective Service:
Federal Student Loans............................... * 3 3 3 5 3 5 5 5 5 14 37
Pell Grants......................................... 1 4 8 9 9 9 9 9 9 9 30 76
Total........................................... 1 7 11 12 14 12 14 14 14 14 44 113
Cost of Attendance:
Federal Student Loans............................... 5 5 5 5 3 3 3 3 3 3 23 38
Pell Grants......................................... * * * * * * * * * * * *
Total........................................... 5 5 5 5 3 3 3 3 3 3 23 38
Simplified Needs Test:
Federal Student Loans............................... * * * * * * * * * * * *
Pell Grants......................................... 1 2 3 4 4 4 4 4 4 4 13 35
Total........................................... 1 2 3 4 4 4 4 4 4 4 13 35
529 Plans:
Federal Student Loans............................... 1 1 1 1 1 1 1 1 1 1 5 10
Pell Grants......................................... * * * * * * * * * * 1 2
Total........................................... 1 1 1 1 1 1 1 1 1 1 6 12
Prevention of Fraud:
Pell Grants......................................... -1 -4 -5 -5 -5 -5 -5 -5 -5 -5 -20 -45
Outlay Effects on Previous Appropriations for Pell Grants... 87 145 -229 -3 0 0 0 0 0 0 0 0
Interactions:
Federal Student Loans............................... 27 24 45 259 345 391 424 479 549 589 700 3,132
Pell Grants......................................... 7 35 93 169 239 275 301 327 356 388 544 2,191
Total........................................... 34 59 138 428 584 666 725 806 905 977 1,244 5,323
Other Program Changes:
Eliminate the TEACH Grant Program................... -8 -38 -65 -74 -67 -51 -36 -35 -35 -35 -252 -444
Total Outlays:
Federal Student Loans............................... 250 -300 -1,565 -2,270 -2,700 -3,115 -3,605 -4,090 -4,355 -4,545 -6,585 -26,295
Pell Grants......................................... 309 1,007 807 1,175 1,307 1,407 1,469 1,525 1,566 1,604 4,605 12,176
TEACH Grants........................................ -8 -38 -65 -74 -67 -51 -36 -35 -35 -35 -252 -444
Total........................................... 551 669 -823 -1,169 -1,460 -1,759 -2,172 -2,600 -2,824 -2,976 -2,232 -14,563
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Estimates are relative to CEO's June 2017 baseline. * = between -$500,000 and $500,000. Components may not sum to totals because of rounding. Provisions with a negligible impact on direct
spending are not included in this table. IDR = Income-Driven Repayment; TEACH = Teacher Education Assistance for College and Higher Education Grant Program.
Effective on July 1, 2019, H.R. 4508 would create the
Federal One Loan Program, a new direct loan program to replace
the current Federal Direct Student Loan Program and would
change the way the federal government lends money to and
accepts repayments from undergraduate, postgraduate, and parent
borrowers. Students and parents with no outstanding direct
loans as of that date would be required to borrow under the new
program.
Undergraduate students with outstanding undergraduate loans
as of that date could continue to borrow in the direct loan
program for their undergraduate education through fiscal year
2024. Graduate students with outstanding graduate loans also
could continue to borrow for their graduate education for the
same period. The effect of the new program's changes on direct
spending would increase over time as more students took out
loans under the Federal One Loan Program and fewer students
borrowed under the old program.
Undergraduate Student Borrowing. Currently, undergraduate
students are eligible for two types of federal direct loans:
subsidized loans, which are available only to borrowers who
demonstrate financial need, and unsubsidized loans, which are
available regardless of need.
The interest rates are the same, but interest accrues on
different schedules for the two types of loans. Subsidized
loans accrue no interest while a student is enrolled at least
half-time, for six months after either leaving school or
dropping below half-time status, and during certain other
periods when repayments may be deferred. Unsubsidized loans
accrue interest from the date of disbursement. The amount that
students may borrow each year depends on their class level and
whether they are dependent or independent students. (Dependent
students are generally undergraduate students under the age of
24, not married, and have no dependents of their own.) H.R.
4508 would make several changes to those programs.
Eliminate Subsidized Loans. The bill would eliminate the
subsidized loan program and increase the amount that students
may borrow in the unsubsidized program by the amount previously
allowed in the subsidized loan program. CBO projects that,
under current law, borrowing by undergraduate students in
direct student loans will be about $64 billion in 2027--about
$31 billion in subsidized loans and about $32 billion in
unsubsidized loans. Under the bill, CBO expects that most
borrowers in the subsidized loan program would continue to
borrow in the unsubsidized loan program. In addition CBO
projects that the federal government saves about $0.11 for
every $1 in unsubsidized loan volume relative to $1 in
subsidized loan volume. Finally, CBO expects that not all
students would borrow as much in the unsubsidized loan program
as they would in the subsidized loan program because of the
higher expected cost for the students. On that basis, and
adjusting for differences in borrow characteristics between the
two loan types, CBO projects that eliminating subsidized loans
would save $3.4 billion in 2027.
Increase Loan Limits. H.R. 4508 also would increase the
amount that an undergraduate student could borrow by $2,000
each academic year. Using data from the National Postsecondary
Student Aid Study (NPSAS), CBO projects this provision would
increase volume in the unsubsidized loan program by about $6
billion in 2027, which CBO estimates saves the government $0.01
for every $1 in lending in that year. That increase in
unsubsidized loan volume would be accompanied by a decrease of
less than $500 million in parent loan volume, which CBO
estimates saves $0.28 for every $1 loaned. The bill also would
allow financial aid officers to cap loan amounts for all or
certain categories of students at an institution, which CBO
projects would reduce lending by about $1 billion in 2027. On
net, those changes in loan volume would increase direct
spending by less than $0.1 billion in that same year.
Change or Eliminate Categories of Deferment and
Forbearance. Finally, the bill would change or eliminate
certain categories of deferment and forbearance that allow
borrowers to temporarily cease paying on their student loans.
(During deferment interest continues to accrue on the
outstanding balance.). In some situations--for example, while
enrolled at least half-time--student borrowers could continue
to defer loan payments. If they were unemployed or experiencing
economic hardship, however, they would not be able to defer
payments, as they can under current law. Reducing the options
for deferred repayment would increase direct spending by $0.3
billion in 2027, mainly because of the loss of accrued interest
during deferment.
In total, CBO projects that those provisions for
undergraduate borrowing together would increase total lending
to undergraduates from $64 billion under current law to $68
billion in 2027. On net, the changes would decrease direct
spending by $18.5 billion over the 2019-2027 period, CB0
estimates.
Graduate Student Borrowing. H.R. 4508 would make certain
changes in federal lending to graduate students who now are
eligible for two types of federal loans: unsubsidized loans and
GradPLUS loans. Under current law, most of those students may
borrow as much as $20,500 per year in the unsubsidized loan
program, although students in certain medical fields can borrow
more. In addition, graduate borrowers can borrow up to their
costs of attendance (minus all other aid received) under the
GradPLUS program, which has a higher interest rate and
origination fee than the unsubsidized loan program.
H.R. 4508 would eliminate the GradPLUS program and raise
the annual limit in the unsubsidized loan program for most
students to $28,500 per academic year (not to exceed their cost
of attendance minus all other aid received), with an aggregate
limit of $150,000. The bill would maintain the higher limits
for borrowers in certain medical fields. As with undergraduate
loans, the bill would allow financial aid officers to cap
lending for certain types of students and reduce the list of
circumstances in which students can defer repayment.
Under current law, CBO projects that in 2027 graduate
students will borrow about $40 billion in the unsubsidized loan
program and another $17 billion in the GradPLUS program. Using
data from NPSAS, CBO estimates that under H.R. 4508, about $9
billion in lending currently in the GradPLUS program would move
into unsubsidized loans, and the remaining $8 billion would be
eliminated.
In addition, CBO expects that under H.R. 4508, some
borrowers who currently borrow the maximum for which they are
eligible in the unsubsidized loan program, but who do not
borrow in the GradPLUS program would increase their
unsubsidized borrowing. This would result in part because
interest rates and fees are lower in the unsubsidized loan
program than in the GradPLUS program and because, unlike the
GradPLUS program, the unsubsidized loan program has no credit
requirement. For this reason, CBO projects a resulting
additional increase of about $3 billion in volume in the
unsubsidized loan program in 2027.
In total, CBO estimates that the provisions would increase
volume in the unsubsidized loan program for graduate students
by about $11 billion in 2027 and increase direct spending by
$3.3 billion over the 2019-2027 period. That increase in direct
spending stems from the elimination of the current GradPLUS
program, which CBO projects will earn $0.08 for every $1 in
lending in 2027. Some of that cost would be offset, in part, by
the increase in volume in the unsubsidized loan program for
graduate students--which CBO projects will earn $0.06 for every
$1 in lending in that same year--and by a small decline in
eligibility for participation in income-driven repayment (IDR)
because borrowers would have lower outstanding balances.
Parent Borrowing. The bill also would amend the federal
loan program for parents. Under current law, in the parent
(PLUS) loan program, parents of dependent students may borrow
up to the cost of attendance (minus all other aid) each
academic year, with no aggregate limit. The Federal One Loan
Program would cap parent borrowing at $12,500 per academic year
and set an aggregate limit of $56,250.
CBO estimates that under current law, parents will borrow
about $18 billion in 2027 and that the federal government will
receive about $0.28 for each $1 lent to those borrowers. Using
data from NPSAS, CBO projects that H.R. 4508 would reduce the
amount loaned by about $3.5 billion in 2027, thus increasing
direct spending by $0.9 billion in that year and by $5.9
billion over the 2019-2027 period.
Repayment Options. H.R. 4508 also would amend the ways in
which federal education loans are repaid. Under current law,
the following options are available to borrowers:
The standard (or default) repayment plan allows
borrowers to make fixed monthly payments for 10 years.
Consolidation allows a borrower to combine all
loans into a single debt with a fixed interest rate. Depending
on the size of the outstanding balance, the borrower may extend
repayment beyond 10 years.
Income-driven repayment plans, such as the
Income-Based Repayment plan, the PAYE (Pay as You Earn)
Repayment Plan, and the REPAYE (Revised Pay as You Earn)
Repayment Plan, allow borrowers to make monthly payments (which
are calculated as a percentage of income), usually for 20 or 25
years, with total forgiveness of outstanding balances at the
end of that term. Payments for most new borrowers are set at 10
percent of discretionary income, and there is no limit on the
amount that may be forgiven. In addition, borrowers in an IDR
plan who are employed full time in public service are eligible
for the Public Service Loan Forgiveness (PSLF) program, which
provides debt forgiveness after 10 years of monthly payments.
Graduated repayment allows borrowers to make
smaller payments early in the period and larger payments in
later years.
Extended repayment gives borrowers with balances
over $30,000 more than 10 years in which to repay their loans.
H.R. 4508 would consolidate repayment options into three
plans: a standard 10-year repayment plan, which would still be
the default; consolidation, which would still include the
option to extend repayment beyond 10 years; and a single IDR
plan.
That new IDR plan would set monthly payments at 15 percent
of a borrower's discretionary income. Borrowers also would be
required to make total interest and principal payments equal to
the amount they would have paid under a standard 10-year plan
before the outstanding balance could be forgiven. Only payments
made under an IDR or a 10-year plan would count toward that
total. H.R. 4508 would eliminate the PSLF program for loans in
the One Loan Program.
CBO estimates that the changes to repayment options under
H.R. 4508 would reduce direct spending by about $40 billion
over the 2019-2027 period. The majority of the savings, roughly
$25 billion, would result from the elimination of the PSLF
program. An additional roughly $15 billion in savings would
come from reducing forgiveness and requiring higher payments
under the new IDR plan (which reduces costs to the government)
and from eliminating extended and graduated repayment terms
(which increases costs to the government because some borrowers
who choose those plans under current law would move to IDR
plans and pay less interest).
Origination Fees. Under current law, borrowers in the
subsidized and unsubsidized loan programs pay an origination
fee of 1 percent of the loan amount. The fee for parent and
GradPLUS loans is 4 percent.\4\ H.R. 4508 would eliminate
origination fees for all Federal One loans, resulting in an
increase in direct spending of $14.5 billion over the 2019-2027
period, CBO estimates.
---------------------------------------------------------------------------
\4\The Budget Control Act of 2011 requires automatic reductions in
the cost of certain mandatory programs. For student loans, the savings
are achieved by increasing origination fees above the percentages
specified in the Higher Education Act. The origination fees described
in the text do not include this additional amount.
---------------------------------------------------------------------------
Other Student Loan Changes
In addition to creating the Federal One Loan Program, H.R.
4508 would make other changes to federal student lending.
Background. Under current law, borrowers may be eligible
for forgiveness of their loans if the educational institution
they attended has violated certain laws or if the institution
closes while the students are enrolled and they do not re-
enroll elsewhere.
In November 2016, the Department of Education published
final rules expanding eligibility for borrower defense to
repayment and streamlining and automating the process of
discharging loans for students enrolled in schools that close.
In June 2017, before the new rules took effect, the department
announced that it would delay implementation and begin a new
negotiated rulemaking process to revise the rules, As a result,
CBO' s June 2017 baseline accounts for only 50 percent of the
impact of the final rules for borrower defense to repayment and
closed-school discharges, as published in November 2016. Thus,
CBO's estimates of proposals that repeal or enact changes to
the final rules are based on only 50 percent of the proposals'
full estimated costs.
Borrower Defense to Repayment. H.R. 4508 would repeal the
final rule for borrower defense to repayment and amend the
current provisions. Those changes, on net, would increase the
number of loans eligible for borrower defense to repayment,
relative to projections in CBO's June 2017 baseline. The
provision with the largest budgetary effect would substantially
incorporate part of the final rule by allowing for borrower
defense to repayment in situations in which institutions made a
substantial misrepresentation, breached a contract with
students, or broke a federal or state law.
On the basis of its analysis of loan volume at schools that
are under investigation for issues that could fall under
borrower defense to repayment, CBO estimates that those
provisions would increase direct spending by $3.2 billion,
relative to the June 2017 baseline, over the 2018-2027 period.
Closed School Discharges. H.R. 4508 would change the
provisions that allow loans to be discharged when schools close
by amending the HEA to include most of the regulations related
to those provisions as they were in effect before November
2016. Among those provisions is one that would require
borrowers to apply for a loan discharge rather than receive it
automatically three years after a school has closed.
Using data that the Department of Education published in
the final rule, CBO estimates that approximately 40 percent of
borrowers from closed schools would not apply for a discharge
or re-enroll elsewhere within three years. CBO projects that
such changes would reduce direct spending, by $0.9 billion over
the 2018-2027 period.
Other Changes. H.R. 4508 also would make several changes to
the student loan programs that would have relatively smaller
effects. Those provisions and CBO' s estimated costs are shown
below:
Rehabilitation Loans. Allow borrowers who
default to rehabilitate their loans for a second time
(increased spending of $500 million over the 2018-2027
period);
Funds to Administer Loan Program.
Appropriate $50 million for fiscal year 2019 to help
the Department of Education administer student loan
programs (increased spending of $50 million over the
2019-2027 period);
Foreign Schools. Amend the eligibility of
foreign schools to participate in the federal student
loan programs, including changing the requirements for
passing the United States Medical Licensing
Examination, allowing foreign institutions to partner
with non-eligible institutions to offer certain
coursework, and changing the requirements for audited
financial statements that foreign schools must provide
(decreased spending of $47 million over the 2018-2027
period);
Parent Loans and IDR. Prohibit parent
borrowers from participating in income-driven repayment
plans (decreased spending of $46 million over the 2018-
2027 period); and
Data Match to Determine Disability
Discharges. Require the Department of Veterans Affairs
to match its data on borrowers with disabilities with
data from the Department of Education to determine
which borrowers may be eligible for a disability
discharge of their loans (increased spending of $19
million over the 2018-2027 period).
CBO estimates that, on net, those changes would increase
direct spending by $476 million over the 2018-2027 period.
Institutional eligibility for federal aid
H.R. 4508 would alter or repeal various regulations
concerning institutional eligibility, including some that are
specific to proprietary, or for-profit, institutions. CBO
expects that it would take several years for institutions to
adjust to the new rules, so the effects of the changes would
increase over the next decade.
Distance Education. H.R. 4508 would repeal the current-law
requirement that online programs provide students with regular,
substantive interaction with faculty. CBO expects that if
programs do not need to meet that criterion they could more
easily expand and scale up, resulting in higher enrollment.
Based on an analysis of the patterns of growth in online
education, CBO projects that by 2027, under this provision, the
number of Pell grant recipients would increase by about 240,000
(or about 3 percent) and federal student lending to
undergraduate and graduate students would increase by about $4
billion.
CBO estimates that this provision would increase direct
spending by $1.9 billion over the 2018-2027 period--$0.9
billion for student loans and $1.0 billion for Pell grants.
90/10 Rule. The ``90/10 rule'' prohibits proprietary
institutions from receiving more than 90 percent of their
overall revenue from student aid programs authorized under
title IV of the HEA, including federal student loans and Pell
grants. Institutions that do not meet that requirement may be
ineligible to receive aid.
CBO's analysis of data from the Department of Education
shows that more than half of all proprietary schools receive at
least 70 percent of their revenue from title IV aid. CBO
anticipates that repealing the 90/10 rule would allow those
schools to expand enrollment and that the schools closest to
the 90 percent threshold would be the most likely to do so. As
a result, CBO estimates, by 2027, the number of Pell grant
recipients would increase by 160,000 (or about 2 percent) and
the total amount of student loans, mostly subsidized and
unsubsidized loans to undergraduate students, would increase by
$1.3 billion.
CBO estimates that repealing the 90/10 rule would increase
direct spending by $2.0 billion over the 2018-2027 period--$1.0
billion for student loans and $1.0 billion for Pell grants.
Short-Term Programs. Current law requires programs to offer
at least 600 clock hours of instruction for students to be
eligible for Pell grants. To be eligible for student loans, a
program must offer at least 300 hours and have a student
completion and placement rate of at least 70 percent. However,
short-term programs that are integrated into longer programs
that are eligible for federal aid are eligible for aid under
current law. H.R. 4508 would extend aid eligibility to students
in short-term programs that offer at least 300 clock hours of
instruction over a minimum of 10 weeks (there would no longer
be any requirements about placement rates).
On the basis of enrollment data for short-term programs
from the Integrated Postsecondary Education Data System and
discussions with accreditors and institutional officials, CBO
estimates that by 2027, expanding the eligibility of short-term
programs would increase the number of Pell grant recipients by
about 100,000 students (or 1 percent) and student lending by
about $160 million. Students enrolled in short-term programs
eligible under this provision would generally receive about
half of the average Pell grant award and a smaller percentage
would take out student loans than those in longer programs.
CBO estimates that allowing short-term programs to
participate in federal aid would increase direct spending by
$451 million over the 2018-2027 period--$108 million for
student loans and $343 million for Pell grants.
Gainful Employment. In October 2014, the Department of
Education published final rules related to gainful employment,
setting benchmarks related to student income and federal loan
debt that had to be met by programs at proprietary institutions
and by non-degree-granting programs at public and nonprofit
institutions if they were to remain eligible for federal
student aid. In June 2017, before any schools lost eligibility,
the department announced that it would delay implementation and
begin a new negotiated rulemaking process to revise the final
rules. As a result, CBO's June 2017 baseline accounts for only
50 percent of the impact of the final rules for gainful
employment, as published in October 2014. Thus, CBO's estimates
of proposals to repeal the final rule are based on 50 percent
of the full estimated costs of that repeal.
H.R. 4508 would repeal the final rulemaking related to
gainful employment and prohibit future rulemaking related to
this issue. Based on CBO's analysis of data from the Department
of Education on student income and student loan debt at
institutions subject to the rule, CBO estimates that by 2027,
that policy would increase the number of Pell grant recipients
by about 45,000 (or 0.5 percent) and student loan volume in the
subsidized and unsubsidized loan programs by about $300
million.
CBO estimates that, relative to its June 2017 baseline
projections, repealing the gainful employment rule would
increase direct spending by $485 million over the 2018-2027
period--$218 million for student loans and $267 million for
Pell grants.
Loan Repayment Rate. Under current law, a school may become
ineligible to participate in the federal student aid programs
if the number of students who default on their student loans is
above certain thresholds. H.R. 4508 would replace that metric,
the cohort default rate, with a new metric--the loan repayment
rate. The loan repayment rate would measure the number of
student borrowers in each program at an institution that are
making the payments required by their repayment plan (rather
than in deferment, forbearance, or default), by the end of
their second year in repayment. Individual programs that fell
below 45 percent, the threshold set in the bill for multiple
cohorts of students, could become ineligible to receive federal
student aid.
Using data from the Department of Education, CBO expects
that this provision would cause some additional programs to
lose eligibility and that some students attending those schools
would not continue their education at other institutions. CBO
estimates that this provision would decrease direct spending by
$267 million over the 2018-2027 period--$150 million for
student loans and $117 million for Pell grants.
Other Changes to Institutional Eligibility. In addition to
the above provisions, H.R. 4508 would make the following
changes. Those provisions and CBO's estimated effects on
spending are shown below:
Competency Based Education. Explicitly make
students enrolled in certain competency based education
programs (programs focused on mastery of a skill
instead of time in a classroom) eligible for aid
(increased spending of $194 million over the 2018-2027
period);\5\
---------------------------------------------------------------------------
\5\Under current law, competency-based programs must express a
student's mastery of competencies in terms of clock hours of
instruction or credit hours to participate in federal student aid.
---------------------------------------------------------------------------
Liberal Arts. Allow proprietary schools to
offer new programs in liberal arts (increased spending
of $192 million over the 2018-2027 period);
Ineligible Program Partnerships. Permit
institutions that are ineligible for title IV student
aid to provide 100 percent of the educational content
when those institutions partner with institutions that
are eligible for federal student aid (increased
spending of $167 million over the 2018-2027 period);\6\
and
---------------------------------------------------------------------------
\6\Any partnership in which the ineligible institution provides at
least 25 percent of the educational content would need approval from
the eligible institution's accreditor. Under current law, ineligible
institutions are permitted to provide only 50 percent of educational
content.
---------------------------------------------------------------------------
Accrediting Agencies. Amend rules related to
accrediting agencies, including expanding the types of
organizations that are eligible to be accreditors,
replacing the standards accreditors use to assess an
institution's success, and extending the period from 18
months to 36 months that an institution may remain in
provisional accreditation status in the case where the
institution's accreditor loses federal recognition
(increased spending of $161 million over the 2018-2027
period).
On the basis of research, discussions with accreditors and
institutional officials, and data from the Department of
Education, CBO estimates that by 2027, those policies in total
would increase the number of Pell grant recipients by about
90,000 (or about 1 percent) and increase student loan volume by
$0.9 billion, not accounting for any interactions among the
provisions.
CBO estimates that those policies would increase direct
spending by $714 million over the 2018-2027 period--$300
million for student loans and $414 million for the Pell grants.
Grant amounts and student eligibility for federal aid
H.R. 4508 would change some grant amounts that students
could receive and alter some of the rules that govern student
eligibility for grants and loans.
Pell Grant Bonus. The bill would appropriate mandatory
funds to provide up to $300 per academic year (or $150 per
semester) to Pell grant recipients taking at least 15 credit
hours, or the equivalent, per semester. Using data on
applications for federal financial aid from the Department of
Education and enrollment data from NPSAS, CBO estimates that
about 40 percent of full-time Pell grant recipients are
enrolled in 15 credits (about 2.6 million students in 2027) in
any given semester and would be eligible for a $150 bonus. CBO
expects that students would receive a smaller bonus if they
were enrolled more than full time (typically 12 credit hours
per semester) but for fewer than 15 credits, so long as they
met other requirements. CBO estimates that in 2027 an
additional 1.6 million Pell grant recipients would receive some
portion of the bonus and that an additional 375,000 students
would increase their credit hours to receive at least a partial
bonus. By 2027, CBO estimates, approximately 10 percent of
students who increased their hours would graduate one semester
earlier than they would under current law, which would reduce
spending for those students.
On net, CBO estimates that providing the bonus would
increase direct spending by $7.3 billion for Pell grants over
the 2018-2027 period.
Return of Title IV Aid. Under current law, aid recipients
who finish 60 percent of a term, but then withdraw completely,
are not required to repay any federal financial aid they have
received for that term. If a student withdraws earlier, the
student, the institution, or both must return a prorated
portion of the aid. Students and schools are required to return
student loan funds before returning Pell grant funds.
H.R. 4508 would amend the rules for determining what
federal student aid must be returned to the government. The
schools, rather than schools and students, would be required to
return federal aid for a student who failed to complete 100
percent of an academic term. The bill also would increase the
proportion of aid that must be returned in most cases, and
would require unearned Pell grant funds to be returned before
student loan funds.
Using enrollment data from NPSAS, CBO estimates that
enacting those provisions would decrease direct spending by
$419 million over the 2018-2027 period. It would decrease the
cost of the Pell grant mandatory add-on by $522 million (as
more schools returned unearned Pell grant funds to the federal
government) and increase direct spending for student loans by
$103 million (as fewer schools returned unearned federal
student loans to the government) over the same period, CBO
expects.
Ability to Benefit. Under current law, to be eligible for
federal student aid, a student must have a high school diploma
or its equivalent (typically a General Education Development
certificate) or have successfully completed a homeschool
program. H.R. 4508 would confer eligibility to students who
have not met those criteria but who have successfully completed
at least 6 credits of postsecondary education.
Before 2011, students who did not meet the current criteria
but who had successfully completed 6 postsecondary credits,
passed an ability-to-benefit test, or completed a state-
administered process were eligible for federal student aid.
Using data from federal financial aid applications for those
students, CBO estimates that by 2027, enacting this provision
would increase the number of Pell grant recipients by about
30,000 students (or about 0.4 percent). Total student loans
would increase by about $220 million in that same year, CBO
projects. CBO estimates that enacting the provision would
increase direct spending by $287 million over the 2018-2027
period--$103 million for student loans and $184 million for
Pell grants.
Other Student Eligibility Changes. In addition to the above
provisions, H.R. 4508 would make the following changes. Those
provisions and CBO's estimated effects on spending are shown
below:
Selective Service. Eliminate the requirement
that all male students over 26 years old be registered
for the Selective Service (increased spending of $113
million over the 2018-2027 period);
Cost of Attendance. Allow institutions to
set different costs of attendance for programs of study
with different modes of instruction (increased spending
of $38 million over the 2018-2027 period);
Simplified Needs Test. Raise the maximum
level of adjusted gross income to qualify for a
``simplified needs test'' to $100,000 (increased
spending of $35 million over the 2018-2027 period)\7\;
---------------------------------------------------------------------------
\7\A ``simplified needs test'' means the student does not have to
provide any asset information.
---------------------------------------------------------------------------
529 Plans. Remove the value of 529 education
plans as assets for all applicants (increased spending
of $12 million over the 2018-2027 period); and
Prevention of Fraud. Prohibit a student who
has received three Pell grants without earning any
credits from receiving any future Pell grants
(decreased spending of $45 million over the 2018-2027
period).
On the basis of data from the Department of Education,
research, and discussions with institutional officials, CBO
estimates that those policies would increase direct spending by
$153 million over the 2018-2027 period--$85 million for student
loans and $68 million for Pell grants.
Outlay Effects on Previous Appropriations for Pell Grants.
The changes made in H.R. 4508 would increase the cost of the
discretionary portion of the Pell grant program in award year
2018-2019. Those changes would cause funding to spend more
quickly than it would under current law. Because the Congress
has already appropriated discretionary funds for that award
year, that shift in spending would occur without additional
Congressional action. CBO estimates that these changes would
increase direct spending in 2018 by $87 million, but, on net,
would not increase direct spending over the 2018-2027 period.
Interactions among provisions
Each provision above was estimated separately relative to
current law. However, there are interactions among the numerous
provisions related to student loans and Pell grants included in
H.R. 4508. For example, CBO expects that eliminating both the
90/10 rule and the gainful-employment rule would result in a
greater expansion in the proprietary sector than would
eliminating each provision individually. That additional cost
is included in the total increase in direct spending for
programmatic interactions.
The combined interaction among all the provisions related
to student loans would increase direct spending for federal
loans by $3.1 billion; among the provisions related to Pell
grants, it would increase direct spending for Pell grants by
$2.2 billion, CBO estimates.
TEACH grants
H.R. 4508 would eliminate the TEACH Grant Program, which
provides grants to students who plan on becoming teachers and
meet certain criteria. About 30,000 students receive TEACH
grants each academic year. On the basis of data from the
Department of Education, CBO estimates that a majority of those
students will fail to meet the requirements of the program and
will thus have their grants converted to loans as the program
requires. As a result, some savings from eliminating the
disbursement of grants would be offset by reduced receipts from
students repaying their grants to the federal government. CBO
estimates that eliminating the TEACH Grant Program would
decrease direct spending by $444 million over the 2018-2027
period.
Fair-value estimating
CBO's cost estimates of student loan provisions use the
methodology specified in FCRA, but the Budget Resolution also
requires CBO to include estimates on a fair-value basis using
market-based discount rates. The value of borrowers' future
repayments of loan principal and interest are worth less to the
government under fair value than under FCRA, which makes the
cost of the loan program look higher under fair value.
Under fair-value estimating, enacting the federal student
loan provisions in H.R. 4508 would increase direct spending by
$0.5 billion in fiscal year 2018 but reduce direct spending by
$3.8 billion over the 2018-2022 period and by $16.9 billion
over the 2018-2027 period (see Table 4).
When the provisions that affect direct spending for Pell
and TEACH grants are included, under fair-value estimating, the
bill would increase direct spending by $0.8 billion in 2018 and
$0.6 billion over the 2018-2022 period but reduce direct
spending by $5.1 billion over the 2018-2027 period.
Federal One Loan Policies. The greatest differences between
FCRA and fair-value estimates for the bill stem from the
Federal One Loan Program. CBO projects that the changes to
undergraduate student borrowing would save $18.5 billion over
the 2019-2027 period under FCRA but only $10.6 billion using
fair-value procedures. Most of that difference results from the
difference in the costs of the unsubsidized loan program for
undergraduate students under FCRA and fair value. CBO estimates
that each $1 of unsubsidized loan volume in 2027 saves the
federal government $0.01 under FCRA but costs $0.16 under fair
value. As a result, the $5 billion increase in volume in the
unsubsidized loan program in 2027 would save less than $0.1
billion under FCRA but cost about $0.8 billion under fair value
(not including changes in parent loan volume).
TABLE 4--ESTIMATED EFFECTS OF LOAN PROVISIONS IN H.R. 4508 USING FAIR VALUE, BY PROVISION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays by fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-2027
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING OUTLAYS
One Loan Program:
Undergraduate Student Borrowing............................... 0 -160 -560 -860 -1,055 -1,225 -1,435 -1,660 -1,795 -1,855 -2,635 -10,605
Graduate Student Borrowing.................................... 0 -110 -240 -340 -400 -450 -505 -560 -590 -610 -1,090 -3,805
Parent Borrowing.............................................. 0 40 140 205 245 275 310 345 365 370 630 2,295
Repayment Options............................................. 0 -1,050 -2,525 -3,465 -4,020 -4,525 -5,110 -5,680 -6,050 -6,315 -11,060 -38,740
Origination Fees.............................................. 0 355 905 1,285 1,510 1,710 1,940 2,160 2,300 2,395 4,055 14,560
Other Student Loan Changes:
Borrower Defense to Repayment................................. 175 345 325 255 245 255 260 270 280 295 1,345 2,705
Closed School Discharges...................................... -30 -70 -80 -80 -80 -85 -85 -90 -95 -100 -340 -795
Rehabilitation Loans.......................................... 50 50 50 50 50 50 50 50 50 50 250 500
Funds to Administer Loan Program.............................. 0 27 16 5 2 0 0 0 0 0 50 50
Foreign Schools............................................... 1 3 5 10 10 15 20 20 20 25 29 129
Parent Loans and IDR.......................................... -8 -4 -4 -4 -4 -4 -3 -3 -3 -3 -24 -40
Data Match to Determine Disability Discharges................. 10 1 1 1 1 1 1 1 1 1 14 19
Institutional Eligibility for Federal Aid:
Distance Education............................................ 5 55 135 240 375 505 630 735 800 845 810 4,325
90/10 Rule.................................................... 35 145 240 290 305 310 320 330 340 350 1,015 2,665
Short-Term Programs........................................... 5 20 25 30 30 35 35 40 40 40 110 300
Gainful Employment............................................ 10 40 65 75 75 75 80 80 80 85 265 665
Loan Repayment Rate........................................... -5 -10 -10 -35 -45 -35 -35 -40 -40 -40 -105 -295
Competency Based Education.................................... 5 15 20 25 30 40 50 60 65 75 95 385
Liberal Arts.................................................. * 10 15 30 30 35 35 35 35 40 85 265
Ineligible Program Partnerships............................... * 3 5 5 10 20 25 35 50 80 23 233
Accrediting Agencies.......................................... -15 20 20 15 15 15 15 15 20 20 55 140
Student Eligibility for Federal Aid:
Return of Title IV Aid........................................ 10 25 25 25 25 30 30 30 30 30 110 260
Ability to Benefit............................................ 20 35 40 40 40 45 45 45 50 50 175 410
Selective Service............................................. 5 15 15 15 15 15 15 20 20 20 65 155
Cost of Attendance............................................ -15 -30 -30 -30 -35 -35 -35 -35 -35 -35 -140 -315
Simplified Needs Test......................................... * * * * * * * * * * * *
529 Plans..................................................... 1 1 1 1 1 1 1 1 1 1 5 10
Interactions:
Interactions.................................................. 216 254 426 717 800 847 941 1,036 1,151 1,281 2,413 7,669
Federal Student Loans, Total...................................... 475 25 -975 -1,495 -1,825 -2,080 -2,405 -2,760 -2,910 -2,905 -3,795 -16,855
Pell Grants, Totala............................................... 309 1,007 807 1,175 1,307 1,407 1,469 1,525 1,566 1,604 4,605 12,176
TEACH Grants, Totala.............................................. -8 -38 -65 -74 -67 -51 -36 -35 -35 -35 -252 -444
Total, Direct Spending........................................ 776 994 -233 -394 -585 -724 -972 -1,270 -1,379 -1,336 558 -5,123
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Estimates are relative to CBO's June 2017 baseline. Components may not sum to totals because of rounding. Provisions with a negligible impact on direct spending are not included in this table.
* = between -$500,000 and $500,000; IDR = Income-Driven Repayment; TEACH Teacher Education Assistance for College and Higher Education Grant Program.
aFor details on these budgetary effects see Table 3.
In 2027, CBO estimates that $1 of loan volume in the
GradPLUS program saves the federal government $0.08 under FCRA
but costs $0.10 under fair value. As a result, the proposal to
eliminate borrowing in the GradPLUS program and replace only
some of that borrowing with lending in the unsubsidized loan
program would increase direct spendingby $3.3 billion under
FCRA but would save $3.8 billion over the 2019-2027 period under fair
value-estimating procedures, CBO estimates.
In addition, in 2027, CBO estimates, $1 of loan volume in
the parent loan program will save the federal government $0.28
under FCRA but only $0.14 under fair value. As a result, the
provisions to cap borrowing for parents would increase direct
spending by $5.9 billion over the 2019-2027 period under FCRA
and by $2.3 billion under fair value, CBO estimates.
Institutional Eligibility for Federal Aid. CBO expects that
all of the policies that affect institutional eligibility,
other than the loan repayment rate, would increase the annual
volume of federal student loans. Because the cost of additional
lending in the student loan programs is higher under fair-value
accounting than under FCRA, the policies that expand
institutional eligibility increase direct spending more under
fair value. For example, CBO estimates that the provision to
repeal the definition of distance education would increase
direct spending by $0.9 billion under FCRA and by $4.3 billion
under fair-value estimating.
Basis of Estimate for Spending Subject to Appropriation:
For this estimate, CBO assumes that the bill will be enacted by
July 1, 2018, and that the necessary funds will be appropriated
each year. As shown in Table 5, CBO estimates that implementing
H.R. 4508 would authorize the appropriation of $112.0 billion
over 2018-2022 period. On the basis of historical spending
patterns, CBO estimates that implementing H.R. 4508 would cost
$87.5 billion over the same period.
Title IV, Pell Grants
The Federal Pell Grant Program is by far the largest
discretionary grant program authorized by the HEA. (The program
also receives mandatory funding.) This section discusses only
the discretionary part of the program.
Although the maximum student award under the discretionary
program is set each year in the appropriation act, for this
estimate, CBO assumes that the maximum award that is funded
with discretionary spending would be $4,860 in each year over
the 2018-2027 period. CBO estimates that the authorization for
the Pell program would total $88.9 billion over the 2018-2022
period and that outlays would total $69.9 billion.
TABLE 5--SPENDING SUBJECT TO APPROPRIATION, BY TITLE
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------
2018 2019 2020 2021 2022 2018-2022
----------------------------------------------------------------------------------------------------------------
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Title IV, Pell Grantsa:
Estimated Authorization Level.................. 322 14,017 23,910 24,962 25,679 88,891
Estimated Outlays.............................. 87 4,016 16,551 24,095 25,145 69,895
Other Grant Programs:
Title IV, Federal Student Aid and Support:
Estimated Authorization Level.................. 0 4,642 4,678 4,716 4,753 18,789
Estimated Outlays.............................. 0 1,115 4,032 4,512 4,729 14,388
Title II, Apprenticeship Grant Program:
Authorization Level............................ 0 183 183 183 183 733
Estimated Outlays.............................. 0 10 134 167 183 493
Title III, Minority-Serving Institutions and HBCUS:
Authorization Level............................ 0 396 396 396 396 1,585
Estimated Outlays.............................. 0 21 289 360 396 1,066
Title V, Hispanic-Serving Institutions:
Authorization Level............................ 0 117 117 117 117 470
Estimated Outlays.............................. 0 6 86 107 117 316
Title VI, International Education and Foreign
Languages:
Authorization Level............................ 0 62 62 62 62 246
Estimated Outlays.............................. 0 3 45 56 62 166
Title VII, Graduate and Postsecondary Studies:
Authorization Level............................ 0 47 47 47 47 189
Estimated Outlays.............................. 0 2 35 43 47 127
Education for the Deaf Act:
Authorization Level............................ 0 191 191 191 191 765
Estimated Outlays.............................. 0 180 191 191 191 754
Tribally Controlled Colleges and Universities
Assistance Act:
Authorization Level............................ 0 78 78 78 78 314
Estimated Outlays.............................. 0 59 77 78 78 292
Total Changes:
Estimated Authorization Level.............. 322 19,734 29,663 30,754 31,508 111,982
Estimated Outlays.......................... 87 5,412 21,439 29,610 30,950 87,498
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
aFor more detail, see Table 6.
Reauthorization. H.R. 4508 would authorize the
appropriation of such sums as may be necessary for the Pell
grant program for fiscal years 2019 through 2024. That
authorization would be extended automatically through 2025
under GEPA. As shown in Table 6, CBO estimates that
reauthorizing the program with no other changes would authorize
the appropriation of $83 billion over the 2018-2022 period and
that implementing the bill would cost $65 billion over the same
period. (The estimated cost of this reauthorization represents
the cost of the discretionary program, assuming a maximum award
of $4,860, less previously appropriated funds and mandatory
funds that support the discretionary portion of the Pell grant
program provided in section 401(b)7(A)(iv) of the Higher
Education Act of 1965.)
Policy Changes. H.R. 4508 would make several changes to
student and institutional eligibility for the Pell grant
program. Detailed descriptions of the major provisions and
CBO's methodology for estimating the costs are discussed in the
``Basis of Estimate for Direct Spending'' section.
CBO estimates that the total cost of implementing those
policies would be $4.6 billion over the 2018-2022 period, as
shown in Table 6.
Other grant programs
H.R. 4508 would amend and authorize several other
discretionary grant programs under several titles of the HEA
and amend provisions in other education laws. Unless otherwise
noted, the bill would authorize the appropriation of the same
funding level for each fiscal year from 2019 through 2024, and
that authorization would automatically be extended through 2025
under the General Education Provisions Act.
Title IV, Federal Student Aid and Student Support. In
addition to the changes in the Pell grant program, the bill
would amend and authorize the appropriation of $18.8 billion
over the 2019-2022 period for the following federal student aid
and student support programs:
Campus-Based Aid Programs--H.R. 4508 would authorize the
appropriation of $1.7 billion for Federal Work-Study, which
funds part-time jobs for students, and repeal the Federal
Supplemental Education Opportunity Grant Program (FSEOG). The
Congress appropriated $1.0 billion for work-study and about
$0.7 billion for FSEOG in 2017.
TRIO Programs--The bill would authorize the appropriation
of $900 million for the TRIO programs (including, for example,
Upward Bound), which provide counseling and other outreach
services to students from disadvantaged backgrounds. The
Congress appropriated $950 million for TRIO in 2017.
TABLE 6--ESTIMATED EFFECTS OF H.R. 4508 ON DISCRETIONARY PELL GRANTS
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------
2018 2019 2020 2021 2022 2018-2022
----------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN SPENDING SUBJECT TO APPROPRIATION
Reauthorizationa:
Reauthorization:
Estimated Authorization Level.............. 0 13,217 22,625 23,325 23,698 82,865
Estimated Outlays.......................... 0 3,569 15,625 22,720 23,419 65,333
Policy Changes:
Institutional Eligibility for Federal Aid:
Distance Education:
Estimated Authorization Level.......... 17 90 168 292 426 994
Estimated Outlays...................... 5 37 110 201 327 680
90/10 Rule:
Estimated Authorization Level.......... 141 286 397 448 455 1,726
Estimated Outlays...................... 38 178 314 410 449 1,390
Short-Term Programs:
Estimated Authorization Level.......... 90 105 119 138 151 603
Estimated Outlays...................... 24 93 108 124 141 491
Gainful Employment:
Estimated Authorization Level.......... 52 93 127 146 148 565
Estimated Outlays...................... 14 62 101 131 146 455
Loan Repayment Rate:
Estimated Authorization Level.......... 0 0 0 -139 -55 -194
Estimated Outlays...................... 0 0 0 -37 -115 -152
Competency Based Education:
Estimated Authorization Level.......... 20 33 39 47 57 196
Estimated Outlays...................... 5 23 35 41 50 154
Liberal Arts:
Estimated Authorization Level.......... 2 17 35 46 47 148
Estimated Outlays...................... 1 6 22 38 46 113
Ineligible Program Partnerships:
Estimated Authorization Level.......... 2 5 8 14 20 49
Estimated Outlays...................... * 2 5 10 16 33
Accrediting Agencies:
Estimated Authorization Level.......... 138 101 68 48 31 387
Estimated Outlays...................... 37 127 93 63 44 363
Student Eligibility for Federal Aid:
Return of Title IV:
Estimated Authorization Level.............. -228 -203 -192 -195 -199 -1,016
Estimated Outlays.......................... -62 -219 -200 -193 -196 -869
Ability to Benefit:
Estimated Authorization Level.............. 37 56 76 78 79 327
Estimated Outlays.......................... 10 42 62 77 78 268
Selective Service:
Estimated Authorization Level.............. 8 32 33 33 34 139
Estimated Outlays.......................... 2 14 32 33 33 114
Cost of Attendance:
Estimated Authorization Level.............. * * * * * *
Estimated Outlays.......................... * * * * * *
Simplified Needs Test:
Estimated Authorization Level.............. 9 12 13 16 16 66
Estimated Outlays.......................... 2 9 12 14 16 54
529 Plans:
Estimated Authorization Level.............. 1 1 1 1 1 6
Estimated Outlays.......................... * 1 1 1 1 5
Prevention of Fraud:
Estimated Authorization Level.............. -17 -17 -17 -18 -18 -86
Estimated Outlays.......................... -5 -17 -17 -17 -18 -73
Interactions:
Interactions:
Estimated Authorization Level.............. 50 188 409 682 788 2,117
Estimated Outlays.......................... 14 87 247 480 708 1,536
Subtotal Costs of Policy Changes:
Estimated Authorization Level.................. 322 800 1,285 1,637 1,982 6,026
Estimated Outlays.............................. 87 448 926 1,375 1,727 4,563
Total Costs of Reauthorization and Policy Changes:
Estimated Authorization Level.................. 322 14,017 23,910 24,962 25,679 88,891
Estimated Outlays.............................. 87 4,016 16,551 24,095 25,145 69,895
----------------------------------------------------------------------------------------------------------------
* = Between zero and $500,000. Components may not sum to totals because of rounding. Provisions with a
negligible effect on spending subject to appropriation are not included in this table.
aRepresents the cost of the discretionary program, assuming a maximum award of $4,860, less previously
appropriated funds and mandatory funds that support the discretionary portion of the Pell grant program
provided in section 401(b)7(A)(iv) of the Higher Education Act of 1965.
Student Aid Administration--The bill also would authorize
the appropriation of such sums as may be necessary for fiscal
years 2019 through 2024 to help administer the federal student
aid programs. Based on funding for student aid administration
in 2017, and accounting for future inflation, CBO estimates
that this provision would authorize the appropriation of $1.6
billion in 2019. That authorization would increase annually
through 2022 because of expected inflation and CBO estimates
that implementing it would cost $5.6 billion over the 2019-2022
period.
Other Title IV Programs--Title IV also would authorize the
appropriation of $400 million for grant programs to help low-
income students in middle and high school prepare for college,
provide campus-based child care for low-income college
students, and assist migrant students. That funding level is
unchanged from fiscal year 2017.
Title II, Apprenticeship Grant Program. The bill would
authorize the appropriation of $183 million for a new
initiative to fund apprenticeship programs run jointly by
postsecondary institutions and private industry. CBO estimates
that implementing this title would cost about $500 million over
the 2019-2022 period. The bill would repeal Teacher Quality
Partnership grants. The underlying authorization for that
program has expired, but it received $43 million in fiscal year
2017.
Title III, Minority-Serving Institutions and Historically
Black Colleges and Universities. H.R. 4508 would amend grant
programs for those institutions and for science, technology,
education, and mathematics (or STEM) programs. Title III would
authorize the appropriation of $396 million, the same amount
that the Congress appropriated for such programs in 2017. CBO
estimates that implementing this title would cost $1.1 billion
over the 2019-2022 period. The bill would not authorize funding
for grants for the Strengthening Institutions Program. The
underlying authorization for that program has expired, but it
received $87 million in 2017.
Title V, Hispanic-Serving Institutions. H.R. 4508 would
amend two grant programs for Hispanic-Serving Institutions and
authorize the appropriation of $117 million, the same amount
appropriated for those programs in 2017. CBO estimates that
implementing this title would cost about $320 million over the
2019-2022 period.
Title VI, International Education and Foreign Languages.
The bill would amend grant programs for international education
and foreign language studies and authorize the appropriation of
$62 million a year. CBO estimates that implementing this
provision would cost about $170 million over the 2019-2022
period. The Congress appropriated $65 million for those
programs in 2017.
Title VII, Graduate and Postsecondary Studies. The bill
would amend grant programs for graduate students and for
postsecondary students with intellectual disabilities and would
authorize the appropriation of $47 million a year, the same
amount as in fiscal year 2017. CBO estimates that implementing
those provisions would cost about $130 million over the 2019-
2022 period.
Education for the Deaf Act. H.R. 4508 would amend the
Education for the Deaf Act and authorize the appropriation of
$121 million for Gallaudet University and $70 million for the
National Technical Institute for the Deaf, the same amounts as
in 2017. CBO estimates that implementing those provisions would
cost about $750 million over the 2019-2022 period.
Tribally Controlled Colleges and Universities Assistance
Act. The bill would amend this act and authorize the
appropriation of $78 million each year for 2019 through 2024
for grant programs at the Bureau of Indian Education at the
Department of the Interior (DOI). (The automatic extension
under GEPA does not apply to programs at DOI.) The Congress
appropriated the same amount for those programs in 2017. CBO
estimates that implementing those provisions would cost about
$290 million over the 2019-2022 period.
Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 7.
TABLE 7--CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4508, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON EDUCATION AND THE WORKFORCE ON DECEMBER 13, 2017
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars
-----------------------------------------------------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-2027
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact 551 669 -823 -1,169 -1,460 -1,759 -2,172 -2,600 -2,824 -2,976 -2,232 -14,563
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Increase In Long-term Direct Spending and Deficits: CBO
estimates that enacting the legislation would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
Uncertainty Surrounding the Estimates: CBO has endeavored
to develop budgetary estimates that are in the middle of the
distribution of potential outcomes. Such estimates are inexact
for various reasons. For example, the ways in which
institutions of higher education, federal agencies, and states
would respond to the changes made by this legislation are all
difficult to predict. In particular, predicting the overall
effects of changes to institutional eligibility, such as the
repeal of the 90/10 rule and the definition of distance
education, is especially difficult.
CBO projections under current law itself also are
uncertain. For example, the first cohort of student loan
borrowers only became eligible for Public Sector Loan
Forgiveness in 2017 and data about future participants is
limited. Thus, CBO's estimates of future participation, and the
resulting savings for eliminating that program, may be too high
or too low.
In addition, changes to the underlying economy could have a
dramatic effect on the estimated costs of this legislation.
Fluctuations in interest rates would change CBO's projections
of the cost of the student loan program and a sudden rise in
unemployment could have a dramatic effect on postsecondary
enrollment, which would increase the cost of all federal
student aid.
Despite the uncertainty, CBO believes the direction of the
budgetary effects of most proposals in the bill is clear. For
example, the changes to the federal student loan program would,
on net, almost surely reduce the costs of this program to the
federal government. Changes to student and institutional
eligibility would almost certainly increase overall enrollment
in higher education, which CBO expects would increase costs in
the Pell grant program.
Mandates: Section 4 of the Unfunded Mandates Reform Act
excludes from the application of that act any legislative
provisions that would enforce constitutional rights of
individuals. CBO has determined that sections 111, 115, and 117
fall within that exclusion because they would enforce the
rights of free speech and religion. None of the remaining
provisions of the bill would impose intergovernmental or
private-sector mandates as defined in UMRA. The bill would
benefit public and private educational institutions by granting
them more flexibility to design curricula and oversee students'
educational and financial welfare. The bill would amend or
impose a number of requirements on educational institutions and
governments that receive federal funds; however, those
requirements and any resulting costs would be conditions of
assistance, which are not considered mandates as defined in
UMRA.
Additional Information by Program:
Changes in program costs and participation in the Pell Grant Program
Table 8 summarizes CBO's estimated changes to the overall
cost of the Pell grant program, given all the policies in H.R.
4508, as well as CBO's expected changes in the number of Pell
grant recipients. (CBO assumes a discretionary award of $4,860
for all future years and a mandatory add-on of $1,060.)
TABLE 8--PELL GRANT PROGRAM COSTS; CBO JUNE 2017 BASELINE VS. H.R. 4508
--------------------------------------------------------------------------------------------------------------------------------------------------------
By award year, in billions of dollars
-----------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES IN PELL GRANT PROGRAM COSTS AND RECIPIENTS
Estimated Program Costs Under CBO June Baseline:
Discretionary................................. 23.2 23.6 24.1 24.5 24.8 25.2 25.6 26.1 26.5 27.1 120.2 250.8
Mandatory Add-On.............................. 6.1 6.2 6.4 6.5 6.6 6.7 6.8 6.9 7.0 7.2 31.7 66.3
Total Program Costs....................... 29.3 29.8 30.4 31.0 31.4 31.9 32.4 33.0 33.6 34.2 152.0 317.1
Estimated Costs of H.R. 4508:
Discretionary................................. 0.3 0.8 1.3 1.6 2.0 2.2 2.4 2.6 2.8 3.0 6.0 19.1
Mandatory Add-On.............................. 0.8 1.0 1.1 1.3 1.4 1.5 1.5 1.6 1.6 1.6 5.6 13.4
Total Program Costs....................... 1.1 1.8 2.4 2.9 3.4 3.6 3.9 4.2 4.4 4.7 11.7 32.5
Estimated Program Costs Under H.R. 4508:
Discretionary................................. 23.6 24.4 25.3 26.1 26.8 27.4 28.1 28.7 29.3 30.1 126.3 269.9
Mandatory Add-On.............................. 6.9 7.2 7.5 7.8 8.0 8.1 8.3 8.4 8.6 8.8 37.4 79.7
Total Program Costs....................... 30.5 31.6 32.9 33.9 34.8 35.5 36.3 37.1 37.9 38.9 163.6 349.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Memorandum: Changes in the Number of Pell Grant Recipients, by Award Year, in Thousands of Recipients
Estimated Number of Pell Grant Recipients
CBO June 2017 Baseline........................ 7,500 7,700 7,800 7,900 8,100 8,200 8,300 8,500 8,600 8,800
Increases from H.R. 4508...................... 200 300 500 600 700 800 900 900 1,000 1,100
Total under H.R. 4508..................... 7,700 8,000 8,300 8,500 8,800 9,000 9,200 9,400 9,600 9,900
--------------------------------------------------------------------------------------------------------------------------------------------------------
CBO assumes the maximum discretionary award will be $4,860 and that the mandatory add-on will be $1,060 for all years, Components may not sum to totals
because of rounding, Award year means July 1 of the first year to June 30 of the following year.
In total, H.R. 4508 would increase costs to the Pell
program by $12 billion over five years, and by $32 billion over
10 years. About 60 percent of that cost can be attributed to
the discretionary award. CBO expects the number of recipients
to increase over the 10 year period, and by 2027, CBO estimates
an additional 1.1 million new Pell recipients (or a 13 percent
increase) because of changes to institutional and student
eligibility in H.R. 4508.
Changes in costs and lending in the federal student loan program
Table 9 summarizes CBO's estimated changes to the overall
cost of and volume in the federal student loan program for
fiscal year 2027, given all the policies in H.R. 4508. CBO
estimates that those changes would increase total lending by
almost $4 billion and decrease the cost of each dollar loaned
by about $0.03 in 2027.
TABLE 9--FEDERAL STUDENT LOAN PROGRAM: CBO JUNE 2017 BASELINE VS. H.R. 4508, FISCAL YEAR 2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
Unsubsidized Unsubsidized All Loans
Subsidized Loans Loans Loans GradPLUS PLUS Loans (All
(Undergraduates) (Undergraduates) (Graduates) (Graduates) (Parents) Borrowers)
--------------------------------------------------------------------------------------------------------------------------------------------------------
CBO June Baseline Estimated Loan Volume and Costs, 2027
Volumea...................................................... 31,186 32,403 40,314 17,091 17,960 138,953
Subsidy Rateb................................................ $0.10 -$0.01 -$0.06 -$0.08 -$0.28 -$0.04
Changes in H.R. 4508
Volumea...................................................... -31,186 43,158 12,460 -17,091 -3,484 3,858
Subsidy Rateb................................................ -$0.10 $0.00 -$0.06 $0.08 $0.05 -$0.03
Estimated Loan Volume and Costs Under H.R. 4508, 2027
Volumea...................................................... 0 75,561 52,774 0 14,476 142,811
Subsidy Rateb................................................ $0.00 -$0.01 -$0.13 -$0.00 -$0.23 -$0.08
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
a Volume in millions of dollars.
b The subsidy rate is the cost or savings to the federal government for each dollar lent.
CBO expects that lending to undergraduate students would
increase, on net, by $12 billion, mostly because of increases
in loan limits for unsubsidized loans and because of increased
enrollment due to changes to institutional eligibility. Loans
to undergraduates would be less expensive to the federal
government, mostly because of the elimination of the subsidized
loan program.
CBO projects that lending to graduate students would
decrease, on net, by about $5 billion, mostly because of the
elimination of the GradPLUS program. Loans to graduate students
would also be less expensive to the federal government,
primarily because of the elimination of PSLF and changes to
IDR.
Finally, CBO expects that lending to parents would drop by
about $3 billion in 2027 because of the new caps on borrowing
for parents. Those loans would be more expensive to the federal
government, mainly because of the elimination of the
origination fee parents currently pay on loans.
Estimate Prepared By: Federal Costs: Justin Humphrey and
Leah Koestner; Mandates: Zachary Byrum.
Estimate Approved By: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 4508.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
HIGHER EDUCATION ACT OF 1965
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this
Act may be cited as the ``Higher Education Act of 1965''.
TITLE I--GENERAL PROVISIONS
PART A--DEFINITIONS
[SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
[(a) Institution of Higher Education.--For purposes of this
Act, other than title IV, the term ``institution of higher
education'' means an educational institution in any State
that--
[(1) admits as regular students only persons having a
certificate of graduation from a school providing
secondary education, or the recognized equivalent of
such a certificate, or persons who meet the
requirements of section 484(d);
[(2) is legally authorized within such State to
provide a program of education beyond secondary
education;
[(3) provides an educational program for which the
institution awards a bachelor's degree or provides not
less than a 2-year program that is acceptable for full
credit toward such a degree, or awards a degree that is
acceptable for admission to a graduate or professional
degree program, subject to review and approval by the
Secretary;
[(4) is a public or other nonprofit institution; and
[(5) is accredited by a nationally recognized
accrediting agency or association, or if not so
accredited, is an institution that has been granted
preaccreditation status by such an agency or
association that has been recognized by the Secretary
for the granting of preaccreditation status, and the
Secretary has determined that there is satisfactory
assurance that the institution will meet the
accreditation standards of such an agency or
association within a reasonable time.
[(b) Additional Institutions Included.--For purposes of this
Act, other than title IV, the term ``institution of higher
education'' also includes--
[(1) any school that provides not less than a 1-year
program of training to prepare students for gainful
employment in a recognized occupation and that meets
the provision of paragraphs (1), (2), (4), and (5) of
subsection (a); and
[(2) a public or nonprofit private educational
institution in any State that, in lieu of the
requirement in subsection (a)(1), admits as regular
students individuals--
[(A) who are beyond the age of compulsory
school attendance in the State in which the
institution is located; or
[(B) who will be dually or concurrently
enrolled in the institution and a secondary
school.
[(c) List of Accrediting Agencies.--For purposes of this
section and section 102, the Secretary shall publish a list of
nationally recognized accrediting agencies or associations that
the Secretary determines, pursuant to subpart 2 of part H of
title IV, to be reliable authority as to the quality of the
education or training offered.
[SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES
OF TITLE IV PROGRAMS.
[(a) Definition of Institution of Higher Education for
Purposes of Title IV Programs.--
[(1) Inclusion of additional institutions.--Subject
to paragraphs (2) through (4) of this subsection, the
term ``institution of higher education'' for purposes
of title IV includes, in addition to the institutions
covered by the definition in section 101--
[(A) a proprietary institution of higher
education (as defined in subsection (b) of this
section);
[(B) a postsecondary vocational institution
(as defined in subsection (c) of this section);
and
[(C) only for the purposes of part D of title
IV, an institution outside the United States
that is comparable to an institution of higher
education as defined in section 101 and that
has been approved by the Secretary for the
purpose of part D of title IV, consistent with
the requirements of section 452(d).
[(2) Institutions outside the united states.--
[(A) In general.--For the purpose of
qualifying as an institution under paragraph
(1)(C), the Secretary shall establish criteria
by regulation for the approval of institutions
outside the United States and for the
determination that such institutions are
comparable to an institution of higher
education as defined in section 101 (except
that a graduate medical school, nursing school,
or a veterinary school, located outside the
United States shall not be required to meet the
requirements of section 101(a)(4)). Such
criteria shall include a requirement that a
student attending such school outside the
United States is ineligible for loans made
under part D of title IV unless--
[(i) except as provided in
subparagraph (B)(iii)(IV), in the case
of a graduate medical school located
outside the United States--
[(I)(aa) at least 60 percent
of those enrolled in, and at
least 60 percent of the
graduates of, the graduate
medical school outside the
United States were not persons
described in section 484(a)(5)
in the year preceding the year
for which a student is seeking
a loan under part D of title
IV; and
[(bb) at least 75 percent of
the individuals who were
students or graduates of the
graduate medical school outside
the United States or Canada
(both nationals of the United
States and others) taking the
examinations administered by
the Educational Commission for
Foreign Medical Graduates
received a passing score in the
year preceding the year for
which a student is seeking a
loan under part D of title IV;
or
[(II) the institution--
[(aa) has or had a
clinical training
program that was
approved by a State as
of January 1, 1992; and
[(bb) continues to
operate a clinical
training program in at
least one State that is
approved by that State;
[(ii) in the case of a veterinary
school located outside the United
States that does not meet the
requirements of section 101(a)(4), the
institution's students complete their
clinical training at an approved
veterinary school located in the United
States; or
[(iii) in the case of a nursing
school located outside of the United
States--
[(I) the nursing school has
an agreement with a hospital,
or accredited school of nursing
(as such terms are defined in
section 801 of the Public
Health Service Act (42 U.S.C.
296)), located in the United
States that requires the
students of the nursing school
to complete the students'
clinical training at such
hospital or accredited school
of nursing;
[(II) the nursing school has
an agreement with an accredited
school of nursing located in
the United States providing
that the students graduating
from the nursing school located
outside of the United States
also receive a degree from the
accredited school of nursing
located in the United States;
[(III) the nursing school
certifies only Federal Direct
Stafford Loans under section
455(a)(2)(A), Federal Direct
Unsubsidized Stafford Loans
under section 455(a)(2)(D), or
Federal Direct PLUS Loans under
section 455(a)(2)(B) for
students attending the
institution;
[(IV) the nursing school
reimburses the Secretary for
the cost of any loan defaults
for current and former students
included in the calculation of
the institution's cohort
default rate during the
previous fiscal year; and
[(V) not less than 75 percent
of the individuals who were
students or graduates of the
nursing school, and who took
the National Council Licensure
Examination for Registered
Nurses in the year preceding
the year for which the
institution is certifying a
Federal Direct Stafford Loan
under section 455(a)(2)(A), a
Federal Direct Unsubsidized
Stafford Loan under section
455(a)(2)(D), or a Federal
Direct PLUS Loan under section
455(a)(2)(B), received a
passing score on such
examination.
[(B) Advisory panel.--
[(i) In general.--For the purpose of
qualifying as an institution under
paragraph (1)(C) of this subsection,
the Secretary shall establish an
advisory panel of medical experts that
shall--
[(I) evaluate the standards
of accreditation applied to
applicant foreign medical
schools; and
[(II) determine the
comparability of those
standards to standards for
accreditation applied to United
States medical schools.
[(ii) Special rule.--If the
accreditation standards described in
clause (i) are determined not to be
comparable, the foreign medical school
shall be required to meet the
requirements of section 101.
[(iii) Report.--
[(I) In general.--Not later
than 1 year after the date of
enactment of the Higher
Education Opportunity Act, the
advisory panel described in
clause (i) shall submit a
report to the Secretary and to
the authorizing committees
recommending eligibility
criteria for participation in
the loan programs under part D
of title IV for graduate
medical schools that--
[(aa) are located
outside of the United
States;
[(bb) do not meet the
requirements of
subparagraph (A)(i);
and
[(cc) have a clinical
training program
approved by a State
prior to January 1,
2008.
[(II) Recommendations.--In
the report described in
subclause (I), the advisory
panel's eligibility criteria
shall include recommendations
regarding the appropriate
levels of performance for
graduate medical schools
described in such subclause in
the following areas:
[(aa) Entrance
requirements.
[(bb) Retention and
graduation rates.
[(cc) Successful
placement of students
in United States
medical residency
programs.
[(dd) Passage rate of
students on the United
States Medical
Licensing Examination.
[(ee) The extent to
which State medical
boards have assessed
the quality of such
school's program of
instruction, including
through on-site
reviews.
[(ff) The extent to
which graduates of such
schools would be unable
to practice medicine in
1 or more States, based
on the judgment of a
State medical board.
[(gg) Any areas
recommended by the
Comptroller General of
the United States under
section 1101 of the
Higher Education
Opportunity Act.
[(hh) Any additional
areas the Secretary may
require.
[(III) Minimum eligibility
requirement.--In the
recommendations described in
subclause (II), the criteria
described in subparagraph
(A)(i)(I)(bb), as amended by
section 102(b) of the Higher
Education Opportunity Act,
shall be a minimum eligibility
requirement for a graduate
medical school described in
subclause (I) to participate in
the loan programs under part D
of title IV.
[(IV) Authority.--The
Secretary may--
[(aa) not earlier
than 180 days after the
submission of the
report described in
subclause (I), issue
proposed regulations
establishing criteria
for the eligibility of
graduate medical
schools described in
such subclause to
participate in the loan
programs under part D
of title IV based on
the recommendations of
such report; and
[(bb) not earlier
than one year after the
issuance of proposed
regulations under item
(aa), issue final
regulations
establishing such
criteria for
eligibility.
[(C) Failure to release information.--The
failure of an institution outside the United
States to provide, release, or authorize
release to the Secretary of such information as
may be required by subparagraph (A) shall
render such institution ineligible for the
purpose of part D of title IV.
[(D) Special rule.--If, pursuant to this
paragraph, an institution loses eligibility to
participate in the programs under title IV,
then a student enrolled at such institution
may, notwithstanding such loss of eligibility,
continue to be eligible to receive a loan under
part D of title IV while attending such
institution for the academic year succeeding
the academic year in which such loss of
eligibility occurred.
[(3) Limitations based on course of study or
enrollment.--An institution shall not be considered to
meet the definition of an institution of higher
education in paragraph (1) if such institution--
[(A) offers more than 50 percent of such
institution's courses by correspondence
(excluding courses offered by
telecommunications as defined in section
484(l)(4)), unless the institution is an
institution that meets the definition in
section 3(3)(C) of the Carl D. Perkins Career
and Technical Education Act of 2006;
[(B) enrolls 50 percent or more of the
institution's students in correspondence
courses (excluding courses offered by
telecommunications as defined in section
484(l)(4)), unless the institution is an
institution that meets the definition in such
section, except that the Secretary, at the
request of such institution, may waive the
applicability of this subparagraph to such
institution for good cause, as determined by
the Secretary in the case of an institution of
higher education that provides a 2- or 4-year
program of instruction (or both) for which the
institution awards an associate or
baccalaureate degree, respectively;
[(C) has a student enrollment in which more
than 25 percent of the students are
incarcerated, except that the Secretary may
waive the limitation contained in this
subparagraph for a nonprofit institution that
provides a 2- or 4-year program of instruction
(or both) for which the institution awards a
bachelor's degree, or an associate's degree or
a postsecondary diploma, respectively; or
[(D) has a student enrollment in which more
than 50 percent of the students do not have a
secondary school diploma or its recognized
equivalent, and does not provide a 2- or 4-year
program of instruction (or both) for which the
institution awards a bachelor's degree or an
associate's degree, respectively, except that
the Secretary may waive the limitation
contained in this subparagraph if a nonprofit
institution demonstrates to the satisfaction of
the Secretary that the institution exceeds such
limitation because the institution serves,
through contracts with Federal, State, or local
government agencies, significant numbers of
students who do not have a secondary school
diploma or its recognized equivalent.
[(4) Limitations based on management.--An institution
shall not be considered to meet the definition of an
institution of higher education in paragraph (1) if--
[(A) the institution, or an affiliate of the
institution that has the power, by contract or
ownership interest, to direct or cause the
direction of the management or policies of the
institution, has filed for bankruptcy, except
that this paragraph shall not apply to a
nonprofit institution, the primary function of
which is to provide health care educational
services (or an affiliate of such an
institution that has the power, by contract or
ownership interest, to direct or cause the
direction of the institution's management or
policies) that files for bankruptcy under
chapter 11 of title 11, United States Code,
between July 1, 1998, and December 1, 1998; or
[(B) the institution, the institution's
owner, or the institution's chief executive
officer has been convicted of, or has pled nolo
contendere or guilty to, a crime involving the
acquisition, use, or expenditure of funds under
title IV, or has been judicially determined to
have committed fraud involving funds under
title IV.
[(5) Certification.--The Secretary shall certify an
institution's qualification as an institution of higher
education in accordance with the requirements of
subpart 3 of part H of title IV.
[(6) Loss of eligibility.--An institution of higher
education shall not be considered to meet the
definition of an institution of higher education in
paragraph (1) if such institution is removed from
eligibility for funds under title IV as a result of an
action pursuant to part H of title IV.
[(b) Proprietary Institution of Higher Education.--
[(1) Principal criteria.--For the purpose of this
section, the term ``proprietary institution of higher
education'' means a school that--
[(A)(i) provides an eligible program of
training to prepare students for gainful
employment in a recognized occupation; or
[(ii)(I) provides a program leading to a
baccalaureate degree in liberal arts, and has
provided such a program since January 1, 2009;
and
[(II) is accredited by a recognized regional
accrediting agency or association, and has
continuously held such accreditation since
October 1, 2007, or earlier;
[(B) meets the requirements of paragraphs (1)
and (2) of section 101(a);
[(C) does not meet the requirement of
paragraph (4) of section 101(a);
[(D) is accredited by a nationally recognized
accrediting agency or association recognized by
the Secretary pursuant to part H of title IV;
and
[(E) has been in existence for at least 2
years.
[(2) Additional institutions.--The term ``proprietary
institution of higher education'' also includes a
proprietary educational institution in any State that,
in lieu of the requirement in section 101(a)(1), admits
as regular students individuals--
[(A) who are beyond the age of compulsory
school attendance in the State in which the
institution is located; or
[(B) who will be dually or concurrently
enrolled in the institution and a secondary
school.
[(c) Postsecondary Vocational Institution.--
[(1) Principal criteria.--For the purpose of this
section, the term ``postsecondary vocational
institution'' means a school that--
[(A) provides an eligible program of training
to prepare students for gainful employment in a
recognized occupation;
[(B) meets the requirements of paragraphs
(1), (2), (4), and (5) of section 101(a); and
[(C) has been in existence for at least 2
years.
[(2) Additional institutions.--The term
``postsecondary vocational institution'' also includes
an educational institution in any State that, in lieu
of the requirement in section 101(a)(1), admits as
regular students individuals--
[(A) who are beyond the age of compulsory
school attendance in the State in which the
institution is located; or (B) who will be
dually or concurrently enrolled in the
institution and a secondary school.]
SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
(a) Institution of Higher Education.--For purposes of this
Act, the term ``institution of higher education'' means an
educational institution in any State that--
(1) admits as regular students only persons who--
(A) have a certificate of graduation from a
school providing secondary education, or the
recognized equivalent of such a certificate, or
who meet the requirements of section 484(d);
(B) are beyond the age of compulsory school
attendance in the State in which the
institution is located; or
(C) will be dually or concurrently enrolled
in the institution and a secondary school;
(2) is legally authorized by the State in which it
maintains a physical location to provide a program of
education beyond secondary education;
(3)(A) is accredited by a nationally recognized
accrediting agency or association; or
(B) if not so accredited, is an institution that has
been granted preaccreditation status by such an agency
or association that has been recognized by the
Secretary for the granting of preaccreditation status,
and the Secretary has determined that there is
satisfactory assurance that the institution will meet
the accreditation standards of such an agency or
association within a reasonable time; and
(4) provides--
(A) an educational program for which the
institution awards a bachelor's degree,
graduate degree, or professional degree;
(B) not less than a 2-year educational
program which is acceptable for full credit
towards a bachelor's degree; or
(C) a non-degree program leading to a
recognized educational credential that meets
the definition of an eligible program under
section 481(b).
(b) Additional Limitations.--
(1) Proprietary institutions of higher education.--
(A) Length of existence.--A proprietary
institution shall not be considered an
institution of higher education unless such
institution has been in existence for at least
2 years.
(B) Institutional ineligibility for minority
serving institution programs.--A proprietary
institution shall not be considered an
institution of higher education for the
purposes of any program under title III or V.
(2) Postsecondary vocational institutions.--A
nonprofit or public institution that offers only non-
degree programs described in subsection (a)(4)(C) shall
not be considered an institution of higher education
unless such institution has been in existence for at
least 2 years.
(3) Limitations based on management.--An institution
shall not be considered an institution of higher
education if--
(A) the institution, or an affiliate of the
institution that has the power, by contract or
ownership interest, to direct or cause the
direction of the management or policies of the
institution, has filed for bankruptcy; or
(B) the institution, the institution's owner,
or the institution's chief executive officer
has been convicted of, or has pled nolo
contendere or guilty to, a crime involving the
acquisition, use, or expenditure of Federal
funds, or has been judicially determined to
have committed a crime involving the
acquisition, use, or expenditure involving
Federal funds.
(4) Limitation on course of study or enrollment.--An
institution shall not be considered an institution of
higher education if such institution--
(A) offers more than 50 percent of such
institution's courses by correspondence
education, unless the institution is an
institution that meets the definition in
section 3(3)(C) of the Carl D. Perkins Career
and Technical Education Act of 2006;
(B) enrolls 50 percent or more of the
institution's students in correspondence
education courses, unless the institution is an
institution that meets the definition in
section 3(3)(C) of such Act;
(C) has a student enrollment in which more
than 25 percent of the students are
incarcerated, except that the Secretary may
waive the limitation contained in this
subparagraph for an institution that provides a
2- or 4-year program of instruction (or both)
for which the institution awards an associate's
degree or a postsecondary certificate, or a
bachelor's degree, respectively; or
(D) has a student enrollment in which more
than 50 percent of the students either do not
have a secondary school diploma or its
recognized equivalent, or do not meet the
requirements of section 484(d), and does not
provide a 2- or 4-year program of instruction
(or both) for which the institution awards an
associate's degree or a bachelor's degree,
respectively, except that the Secretary may
waive the limitation contained in this
subparagraph if an institution demonstrates to
the satisfaction of the Secretary that the
institution exceeds such limitation because the
institution serves, through contracts with
Federal, State, or local government agencies,
significant numbers of students who do not have
a secondary school diploma or its recognized
equivalent or do not meet the requirements of
section 484(d).
(c) List of Accrediting Agencies.--For purposes of this
section, the Secretary shall publish a list of nationally
recognized accrediting agencies or associations that the
Secretary determines, pursuant to subpart 2 of part H of title
IV, to be reliable authority as to the quality of the education
offered.
(d) Certification.--The Secretary shall certify, for the
purposes of participation in title IV, an institution's
qualification as an institution of higher education in
accordance with the requirements of subpart 3 of part H of
title IV.
(e) Loss of Eligibility.--An institution of higher education
shall not be considered to meet the definition of an
institution of higher education for the purposes of
participation in title IV if such institution is removed from
eligibility for funds under title IV as a result of an action
pursuant to part H of title IV.
(f) Rule of Construction.--Nothing in subsection (a)(2)
relating to State authorization shall be construed to--
(1) impede or preempt State laws, regulations, or
requirements on how States authorize out-of-state
institutions of higher education; or
(2) limit, impede, or preclude a State's ability to
collaborate or participate in a reciprocity agreement
to permit an institution within such State to meet any
other State's authorization requirements for out-of-
state institutions.
SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.
(a) Institutions Outside the United States.--
(1) In general.--Only for purposes of part D or E of
title IV, the term ``institution of higher education''
includes an institution outside the United States
(referred to in this part as a ``foreign institution'')
that is comparable to an institution of higher
education as defined in section 101 and has been
approved by the Secretary for purposes of part D or E
of title IV, consistent with the requirements of
section 452(d).
(2) Qualifications.--Only for the purposes of
students receiving aid under title IV, an institution
of higher education may not qualify as a foreign
institution under paragraph (1), unless such
institution--
(A) is legally authorized to provide an
educational program beyond secondary education
by the education ministry (or comparable
agency) of the country in which the institution
is located;
(B) is not located in a State;
(C) except as provided with respect to
clinical training offered by the institution
under 600.55(h)(1), section 600.56(b), or
section 600.57(a)(2) of title 34, Code of
Federal Regulations (as in effect pursuant to
subsection (b))--
(i) does not offer any portion of an
educational program in the United
States to students who are citizens of
the United States;
(ii) has no written arrangements with
an institution or organization located
in the United States under which
students enrolling at the foreign
institution would take courses from an
institution located in the United
States; and
(iii) does not allow students to
enroll in any course offered by the
foreign institution in the United
States, including research, work,
internship, externship, or special
studies within the United States,
except that independent research done
by an individual student in the United
States for not more than one academic
year is permitted, if the research is
conducted during the dissertation phase
of a doctoral program under the
guidance of faculty and the research is
performed at a facility in the United
States;
(D) awards degrees, certificates, or other
recognized educational credentials in
accordance with section 600.54(e) of title 34,
Code of Federal Regulations (as in effect
pursuant to subsection (b)) that are officially
recognized by the country in which the
institution is located; and
(E) meets the applicable requirements of
subsection (b).
(3) Institutions with locations in and outside the
united states.--In a case of an institution of higher
education consisting of two or more locations offering
all or part of an educational program that are directly
or indirectly under common ownership and that enrolls
students both within a State and outside the United
States, and the number of students who would be
eligible to receive funds under title IV attending
locations of such institution outside the United
States, is at least twice the number of students
enrolled within a State--
(A) the locations outside the United States
shall apply to participate as one or more
foreign institutions and shall meet the
requirements of paragraph (1) of this
definition, and the other requirements of this
part; and
(B) the locations within a State shall be
treated as an institution of higher education
under section 101.
(b) Treatment of Certain Regulations.--
(1) Force and effect.--
(A) In general.--The provisions of title 34,
Code of Federal Regulations, referred to in
subparagraph (B), as such provisions were in
effect on the day before the date of the
enactment of the PROSPER Act, shall have the
force and effect of enacted law until changed
by such law and are deemed to be incorporated
in this subsection as though set forth fully in
this subsection.
(B) Applicable provisions.--The provisions of
title 34, Code of Federal Regulations, referred
to in this subparagraph are the following:
(i) Subject to paragraph (2)(A),
section 600.41(e)(3).
(ii) Subject to paragraph (2)(B),
section 600.52.
(iii) Subject to paragraph (2)(C),
section 600.54.
(iv) Subject to subparagraphs (D) and
(E) of paragraph (2), section 600.55,
except that paragraph (4) of subsection
(f) of such section shall have no force
or effect.
(v) Section 600.56.
(vi) Subject to paragraph (2)(F),
section 600.57.
(vii) Subject to subparagraphs (G)
and (H) of paragraph (2), section
668.23(h), except that clause (iii) of
paragraph (1) of such section shall
have no force or effect.
(viii) Section 668.5.
(C) Application to federal one loans.--With
respect to the provisions of title 34, Code of
Federal Regulations, referred to subparagraph
(B), as modified by paragraph (2) any reference
to a loan made under part D of title IV shall
also be treated as a reference to a loan made
under part E of title IV.
(2) Modifications.--The following shall apply to the
provisions of title 34, Code of Federal Regulations,
referred to in paragraph (1)(B):
(A) Notwithstanding section 600.41(e)(3) of
title 34, Code of Federal Regulations (as in
effect pursuant to paragraph (1)), if the basis
for the loss of eligibility of a foreign
graduate medical school to participate in
programs under title IV is one or more annual
pass rates on the United States Medical
Licensing Examination below the threshold
required in subparagraph (D) the sole issue is
whether the aggregate pass rate for the
preceding calendar year fell below that
threshold. For purposes of the preceding
sentence, in the case of a foreign graduate
medical school that opted to have the
Educational Commission for Foreign Medical
Graduates calculate and provide the pass rates
directly to the Secretary for the preceding
calendar year as permitted under section
600.55(d)(2) of title 34, Code of Federal
Regulations (as in effect pursuant to paragraph
(1)), in lieu of the foreign graduate medical
school providing pass rate data to the
Secretary under section 600.55(d)(1)(iii) of
title 34, Code of Federal Regulations (as in
effect pursuant to paragraph (1)), the
Educational Commission for Foreign Medical
Graduates' calculations of the school's rates
are conclusive; and the presiding official has
no authority to consider challenges to the
computation of the rate or rates by the
Educational Commission for Foreign Medical
Graduates.
(B) Notwithstanding section 600.52 of title
34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), in this Act, the
term ``foreign institution'' means an
institution described in subsection (a).
(C) Notwithstanding section 600.54(c) of
title 34, Code of Federal Regulations (as in
effect pursuant to paragraph (1)), to be
eligible to participate in programs under title
IV, foreign institution may not enter into a
written arrangement under which an institution
or organizations that is not eligible to
participate in programs under title IV provides
more than 25 percent of the program of study
for one or more of the eligible foreign
institution's programs.
(D) Notwithstanding section 600.55(f)(1)(ii)
of title 34, Code of Federal Regulations (as in
effect pursuant to paragraph (1)), for a
foreign graduate medical school outside of
Canada, for Step 1, Step 2-CS, and Step 2-CK,
or the successor examinations, of the United
States Medical Licensing Examination
administered by the Educational Commission for
Foreign Medical Graduate, at least 75 percent
of the school's students and graduates who
receive or have received title IV funds in
order to attend that school, and who completed
the final of these three steps of the
examination in the year preceding the year for
which any of the school's students seeks a loan
under title IV shall have received an aggregate
passing score on the exam as a whole; or except
as provided in section 600.55(f)(2) of title
34, Code of Federal Regulations (as in effect
pursuant to paragraph (1)), for no more than
two consecutive years, at least 70 percent of
the individuals who were students or graduates
of the graduate medical school outside the
United States or Canada (who receive or have
received title IV funds in order to attend that
school) taking the United States Medical
Licensing Examination exams in the year
preceding the year for which any of the
school's students seeks a loan under title IV
shall have received an aggregate passing score
on the exam as a whole.
(E) Notwithstanding 600.55(h)(2) of title 34,
Code of Federal Regulations (as in effect
pursuant to paragraph (1)), not more than 25
percent of the graduate medical educational
program offered to United States students,
other than the clinical training portion of the
program, may be located outside of the country
in which the main campus of the foreign
graduate medical school is located.
(F) Notwithstanding section 600.57(a)(5) of
title 34, Code of Federal Regulations (as in
effect pursuant to paragraph (1)), a nursing
school shall reimburse the Secretary for the
cost of any loan defaults for current and
former students during the previous fiscal
year.
(G) Notwithstanding section 668.23(h)(1)(ii),
of title 34, Code of Federal Regulations (as in
effect pursuant to paragraph (1)), a foreign
institution that received $500,000 or more in
funds under title IV during its most recently
completed fiscal year shall submit, in English,
for each most recently completed fiscal year in
which it received such funds, audited financial
statements prepared in accordance with
generally accepted accounting principles of the
institution's home country provided that such
accounting principles are comparable to the
International Financial Reporting Standards.
(H) Notwithstanding section 668.23(h)(1)(ii),
of title 34, Code of Federal Regulations (as in
effect pursuant to paragraph (1)), only in a
case in which the accounting principles of an
institution's home country are not comparable
to International Financial Reporting Standards
shall the institution be required to submit
corresponding audited financial statements that
meet the requirements of section 668.23(d) of
title 34, Code of Federal Regulations (as in
effect pursuant to paragraph (1)).
(c) Special Rules.--
(1) In general.--A foreign graduate medical school at
which student test passage rates are below the minimum
requirements set forth in subsection (b)(2)(D) for each
of the two most recent calendar years for which data
are available shall not be eligible to participate in
programs under part D or E of title IV in the fiscal
year subsequent to that consecutive two year period and
such institution shall regain eligibility to
participate in programs under such part only after
demonstrating compliance with requirements under
section 600.55 of title 34, Code of Federal Regulations
(as in effect pursuant to subsection (b)) for one full
calendar year subsequent to the fiscal year the
institution became ineligible unless, within 30 days of
receiving notification from the Secretary of the loss
of eligibility under this paragraph, the institution
appeals the loss of its eligibility to the Secretary.
The Secretary shall issue a decision on any such appeal
within 45 days after its submission. Such decision may
permit the institution to continue to participate in
programs under part D or E of title IV, if--
(A) the institution demonstrates to the
satisfaction of the Secretary that the test
passage rates on which the Secretary has relied
are not accurate, and that the recalculation of
such rates would result in rates that exceed
the required minimum for any of these two
calendar years; or
(B) there are, in the judgement of the
Secretary, mitigating circumstances that would
make the application of this paragraph
inequitable.
(2) Student eligibility.--If, pursuant to this
subsection, a foreign graduate medical school loses
eligibility to participate in the programs under part D
or E of title IV, then a student at such institution
may, notwithstanding such loss of eligibility, continue
to be eligible to receive a loan under such part while
attending such institution for the academic year
succeeding the academic year in which such loss of
eligibility occurred.
(3) Treatment of clinical training programs.--
(A) In general.--Clinical training programs
operated by a foreign graduate medical school
with an accredited hospital or clinic in the
United States or at an institution in Canada
accredited by the Liaison Committee on Medical
Education shall be deemed to be approved and
shall not require the prior approval of the
Secretary.
(B) On-site evaluations.--Any part of a
clinical training program operated by a foreign
graduate medical school located in a foreign
country other than the country in which the
main campus is located, in the United States,
or at an institution in Canada accredited by
the Liaison Committee on Medical Education,
shall not require an on-site evaluation or
specific approval by the institution's medical
accrediting agency if the location is a
teaching hospital accredited by and located
within a foreign country approved by the
National Committee on Foreign Medical Education
and Accreditation.
(d) Failure to Release Information.--An institution outside
the United States that does not provide to the Secretary such
information as may be required by this section shall be
ineligible to participate in the loan program under part D or E
of title IV.
(e) Online Education.--Notwithstanding section 481(b)(2), an
eligible program described in section 600.54 of title 34, Code
of Federal Regulations (as in effect pursuant to subsection
(b)) may not offer more than 50 percent of courses through
telecommunications.
SEC. 103. ADDITIONAL DEFINITIONS.
In this Act:
(1) Authorizing committees.--The term ``authorizing
committees'' means the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on
Education and Labor of the House of Representatives.
(2) Combination of institutions of higher
education.--The term ``combination of institutions of
higher education'' means a group of institutions of
higher education that have entered into a cooperative
arrangement for the purpose of carrying out a common
objective, or a public or private nonprofit agency,
organization, or institution designated or created by a
group of institutions of higher education for the
purpose of carrying out a common objective on the
group's behalf.
(3) Critical foreign language.--Except as otherwise
provided, the term ``critical foreign language'' means
each of the languages contained in the list of critical
languages designated by the Secretary in the Federal
Register on August 2, 1985 (50 Fed. Reg. 31412;
promulgated under the authority of section 212(d) of
the Education for Economic Security Act (repealed by
section 2303 of the Augustus F. Hawkins-Robert T.
Stafford Elementary and Secondary School Improvement
Amendments of 1988)), as updated by the Secretary from
time to time and published in the Federal Register,
except that in the implementation of this definition
with respect to a specific title, the Secretary may set
priorities according to the purposes of such title and
the national security, economic competitiveness, and
educational needs of the United States.
(4) Department.--The term ``Department'' means the
Department of Education.
(5) Diploma mill.--The term ``diploma mill'' means an
entity that--
(A)(i) offers, for a fee, degrees, diplomas,
or certificates, that may be used to represent
to the general public that the individual
possessing such a degree, diploma, or
certificate has completed a program of
postsecondary education or training; and
(ii) requires such individual to complete
little or no education or coursework to obtain
such degree, diploma, or certificate; and
(B) lacks accreditation by an accrediting
agency or association that is recognized as an
accrediting agency or association of
institutions of higher education (as such term
is defined in [section 102] section 101 or 102)
by--
(i) the Secretary pursuant to subpart
2 of part H of title IV; or
(ii) a Federal agency, State
government, or other organization or
association that recognizes accrediting
agencies or associations.
(6) Disability.--The term ``disability'' has the same
meaning given that term under section 3(2) of the
Americans With Disabilities Act of 1990.
[(7) Distance education.--
[(A) In general.--Except as otherwise
provided, the term``distance education''means
education that uses one or more of the
technologies described in subparagraph (B)--
[(i) to deliver instruction to
students who are separated from the
instructor; and
[(ii) to support regular and
substantive interaction between the
students and the instructor,
synchronously or asynchronously.
[(B) Inclusions.--For the purposes of
subparagraph (A), the technologies used may
include--
[(i) the Internet;
[(ii) one-way and two-way
transmissions through open broadcast,
closed circuit, cable, microwave,
broadband lines, fiber optics,
satellite, or wireless communications
devices;
[(iii) audio conferencing; or
[(iv) video cassettes, DVDs, and CD-
ROMs, if the cassettes, DVDs, or CD-
ROMs are used in a course in
conjunction with any of the
technologies listed in clauses (i)
through (iii).
[(8) Early childhood education program.--The term
``early childhood education program'' means--
[(A) a Head Start program or an Early Head
Start program carried out under the Head Start
Act (42 U.S.C. 9831 et seq.), including a
migrant or seasonal Head Start program, an
Indian Head Start program, or a Head Start
program or an Early Head Start program that
also receives State funding;
[(B) a State licensed or regulated child care
program; or
[(C) a program that--
[(i) serves children from birth
through age six that addresses the
children's cognitive (including
language, early literacy, and early
mathematics), social, emotional, and
physical development; and
[(ii) is--
[(I) a State prekindergarten
program;
[(II) a program authorized
under section 619 or part C of
the Individuals with
Disabilities Education Act; or
[(III) a program operated by
a local educational agency.]
(7) Correspondence education.--The term
``correspondence education'' means education that is
provided by an institution of higher education under
which--
(A) the institution provides instructional
materials (including examinations on the
materials) by mail or electronic transmission
to students who are separated from the
instructor; and
(B) interaction between the institution and
the student is limited and the academic
instruction by faculty is not regular and
substantive, as assessed by the institution's
accrediting agency or association under section
496.
(8) Early childhood education program.--The term
``early childhood education program'' means a program--
(A) that serves children of a range of ages
from birth through age five that addresses the
children's cognitive (including language, early
literacy, and early mathematics), social,
emotional, and physical development; and
(B) that is--
(i) a Head Start program or an Early
Head Start program carried out under
the Head Start Act (42 U.S.C. 9831 et
seq.), including a migrant or seasonal
Head Start program, an Indian Head
Start program, or a Head Start program
or an Early Head Start program that
also receives State funding;
(ii) a State licensed or regulated
child care program;
(iii) a State-funded prekindergarten
or child care program;
(iv) a program authorized under
section 619 of the Individuals with
Disabilities Education Act or part C of
such Act; or
(v) a program operated by a local
educational agency.
(9) Elementary school.--The term ``elementary
school'' has the same meaning given that term under
section 8101 of the Elementary and Secondary Education
Act of 1965.
(10) Gifted and talented.--The term ``gifted and
talented'' has the same meaning given that term under
section 8101 of the Elementary and Secondary Education
Act of 1965.
(11) Local educational agency.--The term ``local
educational agency'' has the same meaning given that
term under section 8101 of the Elementary and Secondary
Education Act of 1965.
(12) New borrower.--The term ``new borrower'' when
used with respect to any date means an individual who
on that date has no outstanding balance of principal or
interest owing on any loan made, insured, or guaranteed
under title IV.
[(13) Nonprofit.--The term ``nonprofit'' as applied
to a school, agency, organization, or institution means
a school, agency, organization, or institution owned
and operated by one or more nonprofit corporations or
associations, no part of the net earnings of which
inures, or may lawfully inure, to the benefit of any
private shareholder or individual.]
(13) Nonprofit.--
(A) The term ``nonprofit'', when used with
respect to a school, agency, organization, or
institution means a school, agency,
organization, or institution owned and operated
by one or more nonprofit corporations or
associations, no part of the net earnings of
which inures, or may lawfully inure, to the
benefit of any private shareholder or
individual.
(B) The term ``nonprofit'', when used with
respect to foreign institution means--
(i) an institution that is owned and
operated only by one or more nonprofit
corporations or associations; and
(ii)(I) if a recognized tax authority
of the institution's home country is
recognized by the Secretary for
purposes of making determinations of an
institution's nonprofit status for
purposes of title IV, the institution
is determined by that tax authority to
be a nonprofit educational institution;
or
(II) if no recognized tax authority
of the institution's home country is
recognized by the Secretary for
purposes of making determinations of an
institution's nonprofit status for
purposes of title IV, the foreign
institution demonstrates to the
satisfaction of the Secretary that it
is a nonprofit educational institution.
(14) Poverty line.--The term ``poverty line'' means
the poverty line (as defined in section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2))
applicable to a family of the size involved.
(15) School or department of divinity.--The term
``school or department of divinity'' means an
institution, or a department or a branch of an
institution, the program of instruction of which is
designed for the education of students--
(A) to prepare the students to become
ministers of religion or to enter upon some
other religious vocation (or to provide
continuing training for any such vocation); or
(B) to prepare the students to teach
theological subjects.
(16) Secondary school.--The term ``secondary school''
has the same meaning given that term under section 8101
of the Elementary and Secondary Education Act of 1965.
(17) Secretary.--The term ``Secretary'' means the
Secretary of Education.
(18) Service-learning.--The term ``service-learning''
has the same meaning given that term under section
101(23) of the National and Community Service Act of
1990.
(19) Special education teacher.--The term ``special
education teacher'' means teachers who teach children
with disabilities as defined in section 602 of the
Individuals with Disabilities Education Act.
(20) State; freely associated states.--
(A) State.--The term ``State'' includes, in
addition to the several States of the United
States, the Commonwealth of Puerto Rico, the
District of Columbia, Guam, American Samoa, the
United States Virgin Islands, the Commonwealth
of the Northern Mariana Islands, and the Freely
Associated States.
(B) Freely associated states.--The term
``Freely Associated States'' means the Republic
of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau.
(21) State educational agency.--The term ``State
educational agency'' has the same meaning given that
term under section 8101 of the Elementary and Secondary
Education Act of 1965.
(22) State higher education agency.--The term ``State
higher education agency'' means the officer or agency
primarily responsible for the State supervision of
higher education.
(23) Universal design.--The term``universal
design''has the meaning given the term in section 3 of
the Assistive Technology Act of 1998 (29 U.S.C. 3002).
(24) Universal design for learning.--The term
``universal design for learning'' means a
scientifically valid framework for guiding educational
practice that--
(A) provides flexibility in the ways
information is presented, in the ways students
respond or demonstrate knowledge and skills,
and in the ways students are engaged; and
(B) reduces barriers in instruction, provides
appropriate accommodations, supports, and
challenges, and maintains high achievement
expectations for all students, including
students with disabilities and students who are
limited English proficient.
(25) Competency-based education; competency-based
education program.--
(A) Competency-based education.--Except as
otherwise provided, the term ``competency-based
education'' means education that--
(i) measures academic progress and
attainment--
(I) by direct assessment of a
student's level of mastery of
competencies;
(II) by expressing a
student's level of mastery of
competencies in terms of
equivalent credit or clock
hours; or
(III) by a combination of the
methods described in subclauses
(I) or (II) and credit or clock
hours; and
(ii) provides the educational
content, activities, and resources,
including substantive instructional
interaction, including by faculty, and
regular support by the institution,
necessary to enable students to learn
or develop what is required to
demonstrate and attain mastery of such
competencies, as assessed by the
accrediting agency or association of
the institution of higher education.
(B) Competency-based education program.--
Except as otherwise provided, the term
``competency-based education program'' means a
postsecondary program offered by an institution
of higher education that--
(i) provides competency-based
education, which upon a student's
demonstration or mastery of a set of
competencies identified and required by
the institution, leads to or results in
the award of a certificate, degree, or
other recognized educational
credential;
(ii) ensures title IV funds may be
used only for learning that results
from instruction provided, or overseen,
by the institution, not for the portion
of the program of which the student has
demonstrated mastery prior to
enrollment in the program or tests of
learning that are not associated with
educational activities overseen by the
institution; and
(iii) is organized in such a manner
that an institution can determine,
based on the method of measurement
selected by the institution under
subparagraph (A)(i), what constitutes a
full-time, three-quarter time, half-
time, and less than half-time workload
for the purposes of awarding and
administering assistance under title IV
of this Act, or assistance provided
under another provision of Federal law
to attend an institution of higher
education.
(C) Competency defined.--In this paragraph,
the term ``competency'' means the knowledge,
skill, or ability demonstrated by a student in
a subject area.
(26) Pay for success initiative.--The term ``pay for
success initiative'' has the meaning given the term in
section 8101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801).
(27) Evidence-based.--The term ``evidence-based'' has
the meaning given the term in section 8101(21)(A) of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801(21)(A)), except that such term shall also
apply to institutions of higher education.
PART B--ADDITIONAL GENERAL PROVISIONS
* * * * * * *
SEC. [112.] 112A. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.
(a) Protection of Rights.--(1) It is the sense of Congress
that no student attending an institution of higher education on
a full- or part-time basis should, on the basis of
participation in protected speech or protected association, be
excluded from participation in, be denied the benefits of, or
be subjected to discrimination or official sanction under any
education program, activity, or division of the institution
directly or indirectly receiving financial assistance under
this Act, whether or not such program, activity, or division is
sponsored or officially sanctioned by the institution.
(2) It is the sense of Congress that--
(A) every individual should be free to profess, and
to maintain, the opinion of such individual in matters
of religion, and that professing or maintaining such
opinion should in no way diminish, enlarge, or affect
the civil liberties or rights of such individual on the
campus of an institution of higher education; and
(B) no public institution of higher education
directly or indirectly receiving financial assistance
under this Act should limit religious expression, free
expression, or any other rights provided under the
First Amendment.
(3) It is the sense of Congress that--
(A) free speech zones and restrictive speech codes
are inherently at odds with the freedom of speech
guaranteed by the First Amendment of the Constitution;
and
(B) no public institution of higher education
directly or indirectly receiving financial assistance
under this Act should restrict the speech of such
institution's students through such zones or codes.
[(2)] (4) It is the sense of Congress that--
(A) the diversity of institutions and educational
missions is one of the key strengths of American higher
education;
(B) individual institutions of higher education have
different missions and each institution should design
its academic program in accordance with its educational
goals;
(C) an institution of higher education should
facilitate the free and open exchange of ideas;
(D) students should not be intimidated, harassed,
discouraged from speaking out, or discriminated
against;
(E) students should be treated equally and fairly;
and
(F) nothing in this paragraph shall be construed to
modify, change, or infringe upon any constitutionally
protected religious liberty, freedom, expression, or
association.
(b) Disclosure of Free Speech Policies.--
(1) In general.--No institution of higher education
shall be eligible to receive funds under this Act,
including participation in any program under title IV,
unless the institution certifies to the Secretary that
the institution has annually disclosed to current and
prospective students any policies held by the
institutions related to protected speech on campus,
including policies limiting where and when such speech
may occur, and the right to submit a complaint under
paragraph (2) if the institution is not in compliance
with any policy disclosed under this paragraph or is
enforcing a policy related to protected speech that has
not been disclosed by the institution under this
paragraph.
(2) Complaint on speech policies.--
(A) Designation of an employee.--The
Secretary shall designate an employee in the
Office of Postsecondary Education of the
Department to receive complaints from students
or student organizations that believe an
institution is not in compliance with any
policy disclosed under paragraph (1) or is
enforcing a policy related to protected speech
that has not been disclosed by the institution
under such paragraph.
(B) Complaint.--A complaint submitted under
subparagraph (A)--
(i) shall--
(I) include the provision of
the institution's policy the
complainant believes the
institution is not in
compliance with or how the
institution is enforcing a
policy related to protected
speech that has not been
disclosed under paragraph (1);
and
(II) be filed not later than
7 days of the complainant's
denial of a right to speak; and
(ii) may affirmatively assert that
the violation described in clause
(i)(I) is a violation of the
complainant's constitutional rights.
(C) Secretarial requirements.--
(i) Review.--
(I) In general.--Not later
than 7 days after the receipt
of the complaint, the Secretary
shall review the complaint and
request a response to the
complaint from the institution.
(II) Response of secretary.--
Not later than 10 days after
the receipt of the complaint,
the Secretary shall make a
decision with respect to such
complaint, without regard to
whether the institution
provides a response to such
complaint.
(ii) Determination that institution
failed to comply.--If, upon the review
required under clause (i), the
Secretary determines that the
institution is not in compliance with
the institution's policy disclosed
under paragraph (1), or the institution
is enforcing a policy that was not
disclosed under paragraph (1), the
Secretary shall--
(I)(aa) if the Secretary
determines that the institution
was not in compliance with a
disclosed policy, require the
institution to comply with the
disclosed policy and provide
the complainant an opportunity
to speak as any other speaker
would be permitted to speak; or
(bb) if the Secretary
determines that the institution
was enforcing an undisclosed
policy, require the institution
to immediately comply with
disclosure requirement under
paragraph (1) and to allow the
complainant to speak as if such
policy were not held by the
institution; and
(II) require the institution
to post the decision of the
Secretary on the website of the
institution, except in the case
in which the complainant
requests that the decision not
be shared.
(iii) Referral.--If the Secretary
believes the denial of the right to
speak may be a violation of the
Constitutional rights of the
complainant, the Secretary shall refer
the complaint to the Department of
Justice.
(D) Limitations.--
(i) Institution's religious beliefs
or mission.--The Secretary shall defer
to the institution's religious beliefs
or mission that the institution
describes in its response to the
complaint as applicable to the
complaint.
(ii) Prohibition on regulations or
guidance.--The Secretary--
(I) shall not promulgate any
regulations with respect to
this paragraph; and
(II) may only issue guidance
that explains or clarifies the
process for filing or reviewing
a complaint under this
paragraph.
[(b)] (c) Construction.--Nothing in this section shall be
construed--
(1) to discourage the imposition of an official
sanction on a student that has willfully participated
in the disruption or attempted disruption of a lecture,
class, speech, presentation, or performance made or
scheduled to be made under the auspices of the
institution of higher education, provided that the
imposition of such sanction is done objectively and
fairly; or
(2) to prevent an institution of higher education
from taking appropriate and effective action to prevent
violations of State liquor laws, to discourage binge
drinking and other alcohol abuse, to protect students
from sexual harassment including assault and date rape,
to prevent hazing, or to regulate unsanitary or unsafe
conditions in any student residence.
[(c)] (d) Definitions.--For the purposes of this section:
(1) Official sanction.--The term ``official
sanction''--
(A) means expulsion, suspension, probation,
censure, condemnation, reprimand, or any other
disciplinary, coercive, or adverse action taken
by an institution of higher education or
administrative unit of the institution; and
(B) includes an oral or written warning made
by an official of an institution of higher
education acting in the official capacity of
the official.
(2) Protected association.--The term ``protected
association'' means the joining, assembling, and
residing with others that is protected under the first
and 14th amendments to the Constitution (including such
joining, assembling, and residing for religious
purposes), or would be protected if the institution of
higher education involved were subject to those
amendments.
(3) Protected speech.--The term ``protected speech''
means speech that is protected under the first and 14th
amendments to the Constitution (including speech
relating to religion), or would be protected if the
institution of higher education involved were subject
to those amendments.
SEC. 112B. SENSE OF CONGRESS ON INCLUSION AND RESPECT.
It is the sense of Congress that--
(1) harassment and violence targeted at students
because of their race, color, religion, sex, or
national origin as listed in section 703 of the Civil
Rights Act of 1964 (42 U.S.C. 2000e-2) should be
condemned;
(2) institutions of higher education and law-
enforcement personnel should be commended for their
efforts to combat violence, extremism, and racism, and
to protect all members of the community from harm; and
(3) Congress is committed to supporting institutions
of higher education in creating safe, inclusive, and
respectful learning environments that fully respect
community members from all backgrounds.
* * * * * * *
SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
(a) Establishment.--There is established in the Department a
National Advisory Committee on Institutional Quality and
Integrity (in this section referred to as the ``Committee'') to
assess the process of accreditation and the institutional
eligibility and certification of institutions of higher
education (as defined in [section 102] section 101) under title
IV.
(b) Membership.--
(1) In general.--The Committee shall have 18 members,
of which--
(A) six members shall be appointed by the
Secretary;
(B) six members shall be appointed by the
Speaker of the House of Representatives, three
of whom shall be appointed on the
recommendation of the majority leader of the
House of Representatives, and three of whom
shall be appointed on the recommendation of the
minority leader of the House of
Representatives; and
(C) six members shall be appointed by the
President pro tempore of the Senate, three of
whom shall be appointed on the recommendation
of the majority leader of the Senate, and three
of whom shall be appointed on the
recommendation of the minority leader of the
Senate.
(2) Qualifications.--Individuals shall be appointed
as members of the Committee--
(A) on the basis of the individuals'
experience, integrity, impartiality, and good
judgment;
(B) from among individuals who are
representatives of, or knowledgeable
concerning, education and training beyond
secondary education, representing all sectors
and types of institutions of higher education
(as defined in [section 102] section 101); and
(C) on the basis of the individuals'
technical qualifications, professional
standing, and demonstrated knowledge in the
fields of accreditation and administration in
higher education.
(3) Terms of members.--[Except as provided in
paragraph (5), the term] The term of office of each
member of the Committee shall be for six years, except
that any member appointed to fill a vacancy occurring
prior to the expiration of the term for which the
member's predecessor was appointed shall be appointed
for the remainder of such term.
(4) Vacancy.--A vacancy on the Committee shall be
filled in the same manner as the original appointment
was made not later than 90 days after the vacancy
occurs. If a vacancy occurs in a position to be filled
by the Secretary, the Secretary shall publish a Federal
Register notice soliciting nominations for the position
not later than 30 days after being notified of the
vacancy.
[(5) Initial terms.--The terms of office for the
initial members of the Committee shall be--
[(A) three years for members appointed under
paragraph (1)(A);
[(B) four years for members appointed under
paragraph (1)(B); and
[(C) six years for members appointed under
paragraph (1)(C).]
(5) Secretarial appointees.--The Secretary may remove
any member who was appointed under paragraph (1)(A) by
a predecessor of the Secretary and may fill the vacancy
created by such removal in accordance with paragraphs
(3) and (4).
(6) Chairperson.--The members of the Committee shall
select a chairperson from among the members.
(c) Functions.--The Committee shall--
(1) advise the Secretary with respect to
establishment and enforcement of the standards of
accrediting agencies or associations under subpart 2 of
part H of title IV;
(2) advise the Secretary with respect to the
recognition of a specific accrediting agency or
association; and
(3) advise the Secretary with respect to the
preparation and publication of the list of nationally
recognized accrediting agencies and associations[;].
[(4) advise the Secretary with respect to the
eligibility and certification process for institutions
of higher education under title IV, together with
recommendations for improvements in such process;
[(5) advise the Secretary with respect to the
relationship between--
[(A) accreditation of institutions of higher
education and the certification and eligibility
of such institutions; and
[(B) State licensing responsibilities with
respect to such institutions; and
[(6) carry out such other advisory functions relating
to accreditation and institutional eligibility as the
Secretary may prescribe by regulation.]
(d) Meeting Procedures.--
(1) Schedule.--
(A) Biannual meetings.--The Committee shall
meet not less often than twice each year, at
the call of the Chairperson.
(B) Publication of date.--The Committee shall
submit the date and location of each meeting in
advance to the Secretary, and the Secretary
shall publish such information in the Federal
Register not later than 30 days before the
meeting.
(2) Agenda.--
(A) Establishment.--The agenda for a meeting
of the Committee shall be established by the
Chairperson and shall be submitted to the
members of the Committee upon notification of
the meeting.
(B) Opportunity for public comment.--The
agenda shall include, at a minimum, opportunity
for public comment during the Committee's
deliberations.
(3) Secretary's designee.--The Secretary shall
designate an employee of the Department to serve as the
Secretary's designee to the Committee, and the
Chairperson shall invite the Secretary's designee to
attend all meetings of the Committee.
(4) Federal advisory committee act.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall apply to
the Committee, except that section 14 of such Act shall
not apply.
(e) Report and Notice.--
(1) Notice.--The Secretary shall annually publish in
the Federal Register--
(A) a list containing, for each member of the
Committee--
(i) the member's name;
(ii) the date of the expiration of
the member's term of office; and
(iii) the name of the individual
described in subsection (b)(1) who
appointed the member; and
(B) a solicitation of nominations for each
expiring term of office on the Committee of a
member appointed by the Secretary.
(2) Report.--Not later than the last day of each
fiscal year, the Committee shall make available an
annual report to the Secretary, the authorizing
committees, and the public. The annual report shall
contain--
(A) a detailed summary of the agenda and
activities of, and the findings and
recommendations made by, the Committee during
the fiscal year preceding the fiscal year in
which the report is made;
(B) a list of the date and location of each
meeting during the fiscal year preceding the
fiscal year in which the report is made;
(C) a list of the members of the Committee;
and
(D) a list of the functions of the
Committee[, including any additional functions
established by the Secretary through
regulation].
(f) Termination.--The Committee shall terminate on [September
30, 2017] September 30, 2024.
* * * * * * *
[SEC. 117. DISCLOSURES OF FOREIGN GIFTS.
[(a) Disclosure Report.--Whenever any institution is owned or
controlled by a foreign source or receives a gift from or
enters into a contract with a foreign source, the value of
which is $250,000 or more, considered alone or in combination
with all other gifts from or contracts with that foreign source
within a calendar year, the institution shall file a disclosure
report with the Secretary on January 31 or July 31, whichever
is sooner.
[(b) Contents of Report.--Each report to the Secretary
required by this section shall contain the following:
[(1) For gifts received from or contracts entered
into with a foreign source other than a foreign
government, the aggregate dollar amount of such gifts
and contracts attributable to a particular country. The
country to which a gift is attributable is the country
of citizenship, or if unknown, the principal residence
for a foreign source who is a natural person, and the
country of incorporation, or if unknown, the principal
place of business, for a foreign source which is a
legal entity.
[(2) For gifts received from or contracts entered
into with a foreign government, the aggregate amount of
such gifts and contracts received from each foreign
government.
[(3) In the case of an institution which is owned or
controlled by a foreign source, the identity of the
foreign source, the date on which the foreign source
assumed ownership or control, and any changes in
program or structure resulting from the change in
ownership or control.
[(c) Additional Disclosures for Restricted and Conditional
Gifts.--Notwithstanding the provisions of subsection (b),
whenever any institution receives a restricted or conditional
gift or contract from a foreign source, the institution shall
disclose the following:
[(1) For such gifts received from or contracts
entered into with a foreign source other than a foreign
government, the amount, the date, and a description of
such conditions or restrictions. The report shall also
disclose the country of citizenship, or if unknown, the
principal residence for a foreign source which is a
natural person, and the country of incorporation, or if
unknown, the principal place of business for a foreign
source which is a legal entity.
[(2) For gifts received from or contracts entered
into with a foreign government, the amount, the date, a
description of such conditions or restrictions, and the
name of the foreign government.
[(d) Relation to Other Reporting Requirements.--
[(1) State requirements.--If an institution described
under subsection (a) is within a State which has
enacted requirements for public disclosure of gifts
from or contracts with a foreign source that are
substantially similar to the requirements of this
section, a copy of the disclosure report filed with the
State may be filed with the Secretary in lieu of a
report required under subsection (a). The State in
which the institution is located shall provide to the
Secretary such assurances as the Secretary may require
to establish that the institution has met the
requirements for public disclosure under State law if
the State report is filed.
[(2) Use of other federal reports.--If an institution
receives a gift from, or enters into a contract with, a
foreign source, where any other department, agency, or
bureau of the executive branch requires a report
containing requirements substantially similar to those
required under this section, a copy of the report may
be filed with the Secretary in lieu of a report
required under subsection (a).
[(e) Public Inspection.--All disclosure reports required by
this section shall be public records open to inspection and
copying during business hours.
[(f) Enforcement.--
[(1) Court orders.--Whenever it appears that an
institution has failed to comply with the requirements
of this section, including any rule or regulation
promulgated under this section, a civil action may be
brought by the Attorney General, at the request of the
Secretary, in an appropriate district court of the
United States, or the appropriate United States court
of any territory or other place subject to the
jurisdiction of the United States, to request such
court to compel compliance with the requirements of
this section.
[(2) Costs.--For knowing or willful failure to comply
with the requirements of this section, including any
rule or regulation promulgated thereunder, an
institution shall pay to the Treasury of the United
States the full costs to the United States of obtaining
compliance, including all associated costs of
investigation and enforcement.
[(g) Regulations.--The Secretary may promulgate regulations
to carry out this section.
[(h) Definitions.--For the purpose of this section--
[(1) the term ``contract'' means any agreement for
the acquisition by purchase, lease, or barter of
property or services by the foreign source, for the
direct benefit or use of either of the parties;
[(2) the term ``foreign source'' means--
[(A) a foreign government, including an
agency of a foreign government;
[(B) a legal entity, governmental or
otherwise, created solely under the laws of a
foreign state or states;
[(C) an individual who is not a citizen or a
national of the United States or a trust
territory or protectorate thereof; and
[(D) an agent, including a subsidiary or
affiliate of a foreign legal entity, acting on
behalf of a foreign source;
[(3) the term ``gift'' means any gift of money or
property;
[(4) the term ``institution'' means any institution,
public or private, or, if a multicampus institution,
any single campus of such institution, in any State,
that--
[(A) is legally authorized within such State
to provide a program of education beyond
secondary school;
[(B) provides a program for which the
institution awards a bachelor's degree (or
provides not less than a 2-year program which
is acceptable for full credit toward such a
degree) or more advanced degrees; and
[(C) is accredited by a nationally recognized
accrediting agency or association and to which
institution Federal financial assistance is
extended (directly or indirectly through
another entity or person), or which institution
receives support from the extension of Federal
financial assistance to any of the
institution's subunits; and
[(5) the term ``restricted or conditional gift or
contract'' means any endowment, gift, grant, contract,
award, present, or property of any kind which includes
provisions regarding--
[(A) the employment, assignment, or
termination of faculty;
[(B) the establishment of departments,
centers, research or lecture programs, or new
faculty positions;
[(C) the selection or admission of students;
or
[(D) the award of grants, loans,
scholarships, fellowships, or other forms of
financial aid restricted to students of a
specified country, religion, sex, ethnic
origin, or political opinion.]
SEC. [118.] 117. APPLICATION OF PEER REVIEW PROCESS.
All applications submitted under the provisions of this Act
which require peer review shall be read by a panel of readers
composed of individuals selected by the Secretary, which shall
include outside readers who are not employees of the Federal
Government. The Secretary shall ensure that no individual
assigned under this section to review any application has any
conflict of interest with regard to that application which
might impair the impartiality with which that individual
conducts the review under this section.
[SEC. 119. BINGE DRINKING ON COLLEGE CAMPUSES.
[(a) Short Title.--This section may be cited as the
``Collegiate Initiative To Reduce Binge Drinking and Illegal
Alcohol Consumption''.
[(b) Sense of Congress.--It is the sense of Congress that, in
an effort to change the culture of alcohol consumption on
college campuses, all institutions of higher education should
carry out the following:
[(1) The president of the institution should appoint
a task force consisting of school administrators,
faculty, students, Greek system representatives, and
others to conduct a full examination of student and
academic life at the institution. The task force should
make recommendations for a broad range of policy and
program changes that would serve to reduce alcohol and
other drug-related problems. The institution should
provide resources to assist the task force in promoting
the campus policies and proposed environmental changes
that have been identified.
[(2) The institution should provide maximum
opportunities for students to live in an alcohol-free
environment and to engage in stimulating, alcohol-free
recreational and leisure activities.
[(3) The institution should enforce a ``zero
tolerance'' policy on the illegal consumption of
alcohol by students at the institution.
[(4) The institution should vigorously enforce the
institution's code of disciplinary sanctions for those
who violate campus alcohol policies. Students with
alcohol or other drug-related problems should be
referred for assistance, including on-campus counseling
programs if appropriate.
[(5) The institution should adopt a policy to
discourage alcoholic beverage-related sponsorship of
on-campus activities. It should adopt policies limiting
the advertisement and promotion of alcoholic beverages
on campus.
[(6) The institution should work with the local
community, including local businesses, in a ``Town/
Gown'' alliance to encourage responsible policies
toward alcohol consumption and to address illegal
alcohol use by students.
[SEC. 120. DRUG AND ALCOHOL ABUSE PREVENTION.
[(a) Restriction on Eligibility.--Notwithstanding any other
provision of law, no institution of higher education shall be
eligible to receive funds or any other form of financial
assistance under any Federal program, including participation
in any federally funded or guaranteed student loan program,
unless the institution certifies to the Secretary that the
institution has adopted and has implemented a program to
prevent the use of illicit drugs and the abuse of alcohol by
students and employees that, at a minimum, includes--
[(1) the annual distribution to each student and
employee of--
[(A) standards of conduct that clearly
prohibit, at a minimum, the unlawful
possession, use, or distribution of illicit
drugs and alcohol by students and employees on
the institution's property or as part of any of
the institution's activities;
[(B) a description of the applicable legal
sanctions under local, State, or Federal law
for the unlawful possession or distribution of
illicit drugs and alcohol;
[(C) a description of the health-risks
associated with the use of illicit drugs and
the abuse of alcohol;
[(D) a description of any drug or alcohol
counseling, treatment, or rehabilitation or re-
entry programs that are available to employees
or students; and
[(E) a clear statement that the institution
will impose sanctions on students and employees
(consistent with local, State, and Federal
law), and a description of those sanctions, up
to and including expulsion or termination of
employment and referral for prosecution, for
violations of the standards of conduct required
by subparagraph (A); and
[(2) a biennial review by the institution of the
institution's program to--
[(A) determine the program's effectiveness
and implement changes to the program if the
changes are needed;
[(B) determine the number of drug and
alcohol-related violations and fatalities
that--
[(i) occur on the institution's
campus (as defined in section
485(f)(6)), or as part of any of the
institution's activities; and
[(ii) are reported to campus
officials;
[(C) determine the number and type of
sanctions described in paragraph (1)(E) that
are imposed by the institution as a result of
drug and alcohol-related violations and
fatalities on the institution's campus or as
part of any of the institution's activities;
and
[(D) ensure that the sanctions required by
paragraph (1)(E) are consistently enforced.
[(b) Information Availability.--Each institution of higher
education that provides the certification required by
subsection (a) shall, upon request, make available to the
Secretary and to the public a copy of each item required by
subsection (a)(1) as well as the results of the biennial review
required by subsection (a)(2).
[(c) Regulations.--
[(1) In general.--The Secretary shall publish
regulations to implement and enforce the provisions of
this section, including regulations that provide for--
[(A) the periodic review of a representative
sample of programs required by subsection (a);
and
[(B) a range of responses and sanctions for
institutions of higher education that fail to
implement their programs or to consistently
enforce their sanctions, including information
and technical assistance, the development of a
compliance agreement, and the termination of
any form of Federal financial assistance.
[(2) Rehabilitation program.--The sanctions required
by subsection (a)(1)(E) may include the completion of
an appropriate rehabilitation program.
[(d) Appeals.--Upon determination by the Secretary to
terminate financial assistance to any institution of higher
education under this section, the institution may file an
appeal with an administrative law judge before the expiration
of the 30-day period beginning on the date such institution is
notified of the decision to terminate financial assistance
under this section. Such judge shall hold a hearing with
respect to such termination of assistance before the expiration
of the 45-day period beginning on the date that such appeal is
filed. Such judge may extend such 45-day period upon a motion
by the institution concerned. The decision of the judge with
respect to such termination shall be considered to be a final
agency action.
[(e) Alcohol and Drug Abuse Prevention Grants.--
[(1) Program authority.--The Secretary may make
grants to institutions of higher education or consortia
of such institutions, and enter into contracts with
such institutions, consortia, and other organizations,
to develop, implement, operate, improve, and
disseminate programs of prevention, and education
(including treatment-referral) to reduce and eliminate
the illegal use of drugs and alcohol and the violence
associated with such use. Such grants or contracts may
also be used for the support of a higher education
center for alcohol and drug abuse prevention that will
provide training, technical assistance, evaluation,
dissemination, and associated services and assistance
to the higher education community as determined by the
Secretary and institutions of higher education.
[(2) Awards.--Grants and contracts shall be awarded
under paragraph (1) on a competitive basis.
[(3) Applications.--An institution of higher
education, a consortium of such institutions, or
another organization that desires to receive a grant or
contract under paragraph (1) shall submit an
application to the Secretary at such time, in such
manner, and containing or accompanied by such
information as the Secretary may reasonably require by
regulation.
[(4) Additional requirements.--
[(A) Participation.--In awarding grants and
contracts under this subsection the Secretary
shall make every effort to ensure--
[(i) the equitable participation of
private and public institutions of
higher education (including community
and junior colleges); and
[(ii) the equitable geographic
participation of such institutions.
[(B) Consideration.--In awarding grants and
contracts under this subsection the Secretary
shall give appropriate consideration to
institutions of higher education with limited
enrollment.
[(5) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection such sums as may be necessary for fiscal
year 2009 and each of the five succeeding fiscal
years.]
SEC. 118. OPIOID MISUSE AND SUBSTANCE ABUSE PREVENTION PROGRAM.
(a) Required Programs.--Each institution of higher education
participating in any program under this Act shall adopt and
implement an evidence-based program to prevent substance abuse
by students and employees that, at a minimum, includes the
annual distribution to each student and employee of--
(1) institutional standards of conduct and sanctions
that clearly prohibit and address the unlawful
possession, use, or distribution of illicit drugs and
alcohol by students and employees; and
(2) the description of any drug or alcohol
counseling, treatment, rehabilitation, or re-entry
programs that are available to students or employees,
including information on opioid abuse prevention, harm
reduction, and recovery.
(b) Information Availability.--Each institution of higher
education described in subsection (a) shall, upon request, make
available to the Secretary and to the public a copy of the
institutional standards described under subsection (a)(1) and
information regarding any programs described in subsection
(a)(2).
(c) Best Practices.--The Secretary, in consultation with the
Secretary of Health and Human Services and outside experts in
the field of substance use prevention and recovery support,
shall--
(1) share best practices for institutions of higher
education to--
(A) address and prevent substance use; and
(B) support students in substance use
recovery; and
(2) if requested by an institution of higher
education, provide technical assistance to such
institution to implement a practice under paragraph
(1).
SEC. [121.] 119. PRIOR RIGHTS AND OBLIGATIONS.
(a) Authorization of Appropriations.--
(1) Pre-1987 parts c and d of title vii.--There are
authorized to be appropriated such sums as may be
necessary for fiscal year 2009 and for each succeeding
fiscal year to pay obligations incurred prior to 1987
under parts C and D of title VII, as such parts were in
effect before the effective date of the Higher
Education Amendments of 1992.
(2) Post-1992 and pre-1998 part c of title vii.--
There are authorized to be appropriated such sums as
may be necessary for fiscal year 2009 and for each
succeeding fiscal year to pay obligations incurred
prior to the date of enactment of the Higher Education
Amendments of 1998 under part C of title VII, as such
part was in effect during the period--
(A) after the effective date of the Higher
Education Amendments of 1992; and
(B) prior to the date of enactment of the
Higher Education Amendments of 1998.
(b) Legal Responsibilities.--
(1) Pre-1987 title vii.--All entities with continuing
obligations incurred under parts A, B, C, and D of
title VII, as such parts were in effect before the
effective date of the Higher Education Amendments of
1992, shall be subject to the requirements of such part
as in effect before the effective date of the Higher
Education Amendments of 1992.
(2) Post-1992 and pre-1998 part c of title vii.--All
entities with continuing obligations incurred under
part C of title VII, as such part was in effect during
the period--
(A) after the effective date of the Higher
Education Amendments of 1992; and
(B) prior to the date of enactment of the
Higher Education Amendments of 1998,
shall be subject to the requirements of such part as
such part was in effect during such period.
SEC. [122.] 120. RECOVERY OF PAYMENTS.
(a) Public Benefit.--Congress declares that, if a facility
constructed with the aid of a grant under part A of title VII
as such part A was in effect prior to the date of enactment of
the Higher Education Amendments of 1998, or part B of such
title as part B was in effect prior to the date of enactment of
the Higher Education Amendments of 1992, is used as an academic
facility for 20 years following completion of such
construction, the public benefit accruing to the United States
will equal in value the amount of the grant. The period of 20
years after completion of such construction shall therefore be
deemed to be the period of Federal interest in such facility
for the purposes of such title as so in effect.
(b) Recovery Upon Cessation of Public Benefit.--If, within 20
years after completion of construction of an academic facility
which has been constructed, in part with a grant under part A
of title VII as such part A was in effect prior to the date of
enactment of the Higher Education Amendments of 1998, or part B
of title VII as such part B was in effect prior to the date of
enactment of the Higher Education Amendments of 1992--
(1) the applicant under such parts as so in effect
(or the applicant's successor in title or possession)
ceases or fails to be a public or nonprofit
institution; or
(2) the facility ceases to be used as an academic
facility, or the facility is used as a facility
excluded from the term ``academic facility'' (as such
term was defined under title VII, as so in effect),
unless the Secretary determines that there is good
cause for releasing the institution from its
obligation,
the United States shall be entitled to recover from such
applicant (or successor) an amount which bears to the value of
the facility at that time (or so much thereof as constituted an
approved project or projects) the same ratio as the amount of
Federal grant bore to the cost of the facility financed with
the aid of such grant. The value shall be determined by
agreement of the parties or by action brought in the United
States district court for the district in which such facility
is situated.
(c) Prohibition on Use for Religion.--Notwithstanding the
provisions of subsections (a) and (b), no project assisted with
funds under title VII (as in effect prior to the date of
enactment of the Higher Education Amendments of 1998) shall
ever be used for religious worship or a sectarian activity or
for a school or department of divinity.
SEC. [123.] 121. DIPLOMA MILLS.
(a) Information to the Public.--The Secretary shall maintain
information and resources on the Department's website to assist
students, families, and employers in understanding what a
diploma mill is and how to identify and avoid diploma mills.
(b) Collaboration.--The Secretary shall continue to
collaborate with the United States Postal Service, the Federal
Trade Commission, the Department of Justice (including the
Federal Bureau of Investigation), the Internal Revenue Service,
and the Office of Personnel Management to maximize Federal
efforts to--
(1) prevent, identify, and prosecute diploma mills;
and
(2) broadly disseminate to the public information
about diploma mills, and resources to identify diploma
mills.
SEC. 122. CAMPUS ACCESS FOR RELIGIOUS GROUPS.
None of the funds made available under this Act may be
provided to any public institution of higher education that
denies to a religious student organization any right, benefit,
or privilege that is generally afforded to other student
organizations at the institution (including full access to the
facilities of the institution and official recognition of the
organization by the institution) because of the religious
beliefs, practices, speech, leadership and membership
standards, or standards of conduct of the religious student
organization.
SEC. 123. SECRETARIAL PROHIBITIONS.
(a) In General.--Nothing in this Act shall be construed to
authorize or permit the Secretary to promulgate any rule or
regulation that exceeds the scope of the explicit authority
granted to the Secretary under this Act.
(b) Definitions.--The Secretary shall not define any term
that is used in this Act in a manner that is inconsistent with
the scope of this Act, including through regulation or
guidance.
(c) Requirements.--The Secretary shall not impose, on an
institution or State as a condition of participation in any
program under this Act, any requirement that exceeds the scope
of the requirements explicitly set forth in this Act for such
program.
SEC. 124. ENSURING EQUAL TREATMENT BY GOVERNMENTAL ENTITIES.
(a) In General.--Notwithstanding any other provision of law,
no government entity shall take any adverse action against an
institution of higher education that receives funding under
title IV, if such adverse action--
(1)(A) is being taken by a government entity that--
(i) is a department, agency, or
instrumentality of the Federal Government; or
(ii) receives Federal funds; or
(B) would affect commerce with foreign nations, among
the several States, or with Indian Tribes; and
(2) has the effect of prohibiting or penalizing the
institution for acts or omissions by the institution
that are in furtherance of its religious mission or are
related to the religious affiliation of the
institution.
(b) Assertion by Institution.--An actual or threatened
violation of subsection (a) may be asserted by an institution
of higher education that receives funding under title IV as a
claim or defense in a proceeding before any court. The court
shall grant any appropriate equitable relief, including
injunctive or declaratory relief.
(c) Rule of Construction.--Nothing in this section shall be
construed to alter or amend--
(1) title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.);
(2) section 182 of the Elementary and Secondary
Education Amendments Act of 1966 (42 U.S.C. 2000d-5);
or
(3) section 2 of the Elementary and Secondary
Education Amendments Act of 1969 (42 U.S.C. 2000d-6)
(d) Definitions.--In this section:
(1) Adverse action.--The term ``adverse action''
includes, with respect to an institution of higher
education or the past, current, or prospective students
of such institution--
(A) the denial or threat of denial of
funding, including grants, scholarships, or
loans;
(B) the denial or threat of denial of access
to facilities or programs;
(C) the withholding or threat of withholding
of any licenses, permits, certifications,
accreditations, contracts, cooperative
agreements, grants, guarantees, tax-exempt
status, or exemptions; or
(D) any other penalty or denial, or threat of
such other penalty or denial, of an otherwise
available benefit.
(2) Government entity.--The term ``government
entity'' means--
(A) any department, agency, or
instrumentality of the Federal Government;
(B) a State or political subdivision of a
State, or any agency or instrumentality
thereof; and
(C) any interstate or other inter-
governmental entity.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101 or 102.
(4) Religious mission.--The term ``religious
mission'' includes an institution of higher education's
religious tenets, beliefs, or teachings, and any
policies or decisions related to such tenets, beliefs,
or teachings (including any policies or decisions
concerning housing, employment, curriculum, self-
governance, or student admission, continuing
enrollment, or graduation).
SEC. 125. SINGLE-SEX SOCIAL STUDENT ORGANIZATIONS.
(a) Non-retaliation Against Single-sex Student
Organizations.--An institution of higher education that has a
policy allowing for the official recognition of a single-sex
social student organization may not--
(1) require or coerce such a recognized organization
to admit as a member an individual who does not meet
the organization's criteria for single-sex status;
(2) require or coerce such a recognized organization
to permit an individual described in paragraph (1) to
participate in the activities of the organization;
(3) take any adverse action against a student on the
basis of the student's membership in such recognized
organization; or
(4) impose any requirement or restriction, including
on timing for accepting new members or membership
recruitment, on such a recognized organization (or its
current or prospective members) based on the
organization's single-sex status or its criteria for
defining its single-sex status.
(b) Construction.--Nothing in this Act shall be construed--
(1) to create any enforceable right--
(A) by a local, college, or university
student organization against a national student
organization; or
(B) by a national student organization
against any local, college, or university
student organization;
(2) to require an institution of higher education to
have a policy allowing for the official recognition of
a single-sex social student organization; or
(3) to prohibit an institution of higher education
from taking an adverse action against a member of a
single-sex social student organization for reasons
other than on the basis of such student's membership in
such organization, such as academic or non-academic
misconduct.
(c) Adverse Action.--For the purposes of this section, the
term ``adverse action'' includes the following:
(1) Expulsion, suspension, probation, censure,
condemnation, reprimand, or any other disciplinary,
coercive, or adverse action taken by an institution of
higher education or administrative unit of such an
institution.
(2) An oral or written warning made by an official of
an institution of higher education acting in the
official's official capacity.
(3) Denying participation in any education program or
activity.
(4) Withholding, in whole or in part, any financial
assistance (including scholarships and on-campus
employment), or denying the opportunity to apply for
financial assistance, a scholarship, or on-campus
employment.
(5) Denying or restricting access to on-campus
housing.
(6) Denying any certification or letter of
recommendation that may be required by a student's
current or future employer, a government agency, a
licensing board, or an educational institution or
scholarship program to which the student seeks to
apply.
(7) Denying participation in any sports team, club,
or other student organization, or denying any
leadership position in any sports team, club, or other
student organization.
SEC. 126. DEPARTMENT STAFF.
The Secretary shall--
(1) not later than 60 days after the date of
enactment of the PROSPER Act, identify the number of
Department full-time equivalent employees who worked on
or administered each education program or project
authorized under this Act, as such program or project
was in effect on the day before such date, and publish
such information on the Department's website;
(2) not later than 60 days after such date, identify
the number of full-time equivalent employees who worked
on or administered each program or project authorized
under this Act, as such program or project was in
effect on the day before such date, that has been
eliminated or consolidated since such date;
(3) not later than 1 year after such date, reduce the
workforce of the Department by the number of full-time
equivalent employees the Department identified under
paragraph (2); and
(4) not later than 1 year after such date, report to
the Congress on--
(A) the number of full-time equivalent
employees associated with each program or
project authorized under this Act and
administered by the Department;
(B) the number of full-time equivalent
employees who were determined to be associated
with eliminated or consolidated programs or
projects described in paragraph (2);
(C) how the Secretary has reduced the number
of full-time equivalent employees as described
in paragraph (3);
(D) the average salary of the full-time
equivalent employees described in subparagraph
(B) whose positions were eliminated; and
(E) the average salary of the full-time
equivalent employees who work on or administer
a program or project authorized by the
Department under this Act, disaggregated by
employee function within each such program or
project.
SEC. 127. DEPARTMENT OF HOMELAND SECURITY RECRUITING ON CAMPUS.
None of the funds made available under this Act may be
provided to any institution of higher education that has in
effect a policy or practice that either prohibits, or in effect
prevents, the Secretary of Homeland Security from gaining
access to campuses or access to students (who are 17 years of
age or older) on campuses, for purposes of Department of
Homeland Security recruiting in a manner that is at least equal
in quality and scope to the access to campuses and to students
that is provided to any other employer.
* * * * * * *
PART C--COST OF HIGHER EDUCATION
SEC. 131. IMPROVEMENTS IN MARKET INFORMATION AND PUBLIC ACCOUNTABILITY
IN HIGHER EDUCATION.
(a) Improved Data Collection.--
(1) Development of uniform methodology.--The
Secretary shall direct the Commissioner of Education
Statistics to convene a series of forums to develop
nationally consistent methodologies for reporting costs
incurred by postsecondary institutions in providing
postsecondary education.
(2) Redesign of data systems.--On the basis of the
methodologies developed pursuant to paragraph (1), the
Secretary shall redesign relevant parts of the
postsecondary education data systems to improve the
usefulness and timeliness of the data collected by such
systems.
(3) Information to institutions.--The Commissioner of
Education Statistics shall--
(A) develop a standard definition for the
following data elements:
(i) tuition and fees for a full-time
undergraduate student;
(ii) cost of attendance for a full-
time undergraduate student, consistent
with the provisions of section 472;
(iii) average amount of financial
assistance received by an undergraduate
student who attends an institution of
higher education, including--
(I) each type of assistance
or benefit described in section
428(a)(2)(C)(ii);
(II) fellowships; and
(III) institutional and other
assistance; and
(iv) number of students receiving
financial assistance described in each
of subclauses (I), (II), and (III) of
clause (iii);
(B) not later than 90 days after the date of
enactment of the Higher Education Amendments of
1998, report the definitions to each
institution of higher education and within a
reasonable period of time thereafter inform the
authorizing committees of those definitions;
and
(C) collect information regarding the data
elements described in subparagraph (A) with
respect to at least all institutions of higher
education participating in programs under title
IV, beginning with the information from
academic year 2000-2001 and annually
thereafter.
(b) Data Dissemination.--The Secretary shall make available
the data collected pursuant to subsection (a). Such data shall
be available in a form that permits the review and comparison
of the data submissions of individual institutions of higher
education. Such data shall be presented in a form that is
easily understandable and allows parents and students to make
informed decisions based on the costs for typical full-time
undergraduate students.
(c) Study.--
(1) In general.--The Commissioner of Education
Statistics shall conduct a national study of
expenditures at institutions of higher education. Such
study shall include information with respect to--
(A) the change in tuition and fees compared
with the consumer price index and other
appropriate measures of inflation;
(B) faculty salaries and benefits;
(C) administrative salaries, benefits and
expenses;
(D) academic support services;
(E) research;
(F) operations and maintenance; and
(G) institutional expenditures for
construction and technology and the potential
cost of replacing instructional buildings and
equipment.
(2) Evaluation.--The study shall include an
evaluation of--
(A) changes over time in the expenditures
identified in paragraph (1);
(B) the relationship of the expenditures
identified in paragraph (1) to college costs;
and
(C) the extent to which increases in
institutional financial aid and tuition
discounting practices affect tuition increases,
including the demographics of students
receiving such discounts, the extent to which
financial aid is provided to students with
limited need in order to attract a student to a
particular institution, and the extent to which
Federal financial aid, including loan aid, has
been used to offset the costs of such
practices.
(3) Final report.--The Commissioner of Education
Statistics shall submit a report regarding the findings
of the study required by paragraph (1) to the
appropriate committees of Congress not later than
September 30, 2002.
(4) Higher education market basket.--The Bureau of
Labor Statistics, in consultation with the Commissioner
of Education Statistics, shall develop a higher
education market basket that identifies the items that
comprise the costs of higher education. The Bureau of
Labor Statistics shall provide a report on the market
basket to the Committee on Labor and Human Resources of
the Senate and the Committee on Education and the
Workforce of the House of Representatives not later
than September 30, 2002.
(5) Fines.--In addition to actions authorized in
section 487(c), the Secretary may impose a fine in an
amount not to exceed $25,000 on an institution of
higher education for failing to provide the information
described in paragraph (1) in a timely and accurate
manner, or for failing to otherwise cooperate with the
National Center for Education Statistics regarding
efforts to obtain data on the cost of higher education
under this section and pursuant to the program
participation agreement entered into under section 487.
(d) Promotion of the Department of Education Federal Student
Financial Aid Website.--The Secretary shall display a link to
the Federal student financial aid website of the Department in
a prominent place on the homepage of the Department's website.
(e) Enhanced Student Financial Aid Information.--
(1) Implementation.--The Secretary shall continue to
improve the usefulness and accessibility of the
information provided by the Department on college
planning and student financial aid.
(2) Dissemination.--The Secretary shall continue to
make the availability of the information on the Federal
student financial aid website of the Department widely
known, through a major media campaign and other forms
of communication.
(3) Coordination.--As a part of the efforts required
under this subsection, the Secretary shall create one
website accessible from the Department's website that
fulfills the requirements under subsections (b), (f),
and (g).
(f) Improved Availability and Coordination of Information
Concerning Student Financial Aid Programs for Military Members
and Veterans.--
(1) Coordination.--The Secretary, in coordination
with the Secretary of Defense and the Secretary of
Veterans Affairs, shall create a searchable website
that--
(A) contains information, in simple and
understandable terms, about all Federal and
State student financial assistance, readmission
requirements under section 484C, and other
student services, for which members of the
Armed Forces (including members of the National
Guard and Reserves), veterans, and the
dependents of such members or veterans may be
eligible; and
(B) is easily accessible through the website
described in subsection (e)(3).
(2) Implementation.--Not later than one year after
the date of enactment of the Higher Education
Opportunity Act, the Secretary shall make publicly
available the Armed Forces information website
described in paragraph (1).
(3) Dissemination.--The Secretary, in coordination
with the Secretary of Defense and the Secretary of
Veterans Affairs, shall make the availability of the
Armed Forces information website described in paragraph
(1) widely known to members of the Armed Forces
(including members of the National Guard and Reserves),
veterans, the dependents of such members or veterans,
States, institutions of higher education, and the
general public.
(4) Definition.--In this subsection, the term
``Federal and State student financial assistance''
means any grant, loan, work assistance, tuition
assistance, scholarship, fellowship, or other form of
financial aid for pursuing a postsecondary education
that is--
(A) administered, sponsored, or supported by
the Department of Education, the Department of
Defense, the Department of Veterans Affairs, or
a State; and
(B) available to members of the Armed Forces
(including members of the National Guard and
Reserves), veterans, or the dependents of such
members or veterans.
(g) Promotion of Availability of Information Concerning Other
Student Financial Aid Programs.--
(1) Definition.--For purposes of this subsection, the
term ``nondepartmental student financial assistance
program'' means any grant, loan, scholarship,
fellowship, or other form of financial aid for students
pursuing a postsecondary education that is--
(A) distributed directly to the student or to
the student's account at an institution of
higher education; and
(B) operated, sponsored, or supported by a
Federal department or agency other than the
Department of Education.
(2) Availability of other student financial aid
information.--The Secretary shall ensure that--
(A) not later than 90 days after the
Secretary receives the information required
under paragraph (3), the eligibility
requirements, application procedures, financial
terms and conditions, and other relevant
information for each nondepartmental student
financial assistance program are searchable and
accessible through the Federal student
financial aid website in a manner that is
simple and understandable for students and the
students' families; and
(B) the website displaying the information
described in subparagraph (A) includes a link
to the National Database on Financial
Assistance for the Study of Science,
Technology, Engineering, and Mathematics
pursuant to paragraph (4), and the information
on military benefits under subsection (f), once
such Database and information are available.
(3) Nondepartmental student financial assistance
programs.--The Secretary shall request all Federal
departments and agencies to provide the information
described in paragraph (2)(A), and each Federal
department or agency shall--
(A) promptly respond to surveys or other
requests from the Secretary for the information
described in such paragraph; and
(B) identify for the Secretary any
nondepartmental student financial assistance
program operated, sponsored, or supported by
such Federal department or agency.
(4) National stem database.--
(A) In general.--The Secretary shall
establish and maintain, on the website
described in subsection (e)(3), a National
Database on Financial Assistance for the Study
of Science, Technology, Engineering, and
Mathematics (in this paragraph referred to as
the ``STEM Database''). The STEM Database shall
consist of information on scholarships,
fellowships, and other programs of Federal,
State, local, and, to the maximum extent
practicable, private financial assistance
available for the study of science, technology,
engineering, or mathematics at the
postsecondary and postbaccalaureate levels.
(B) Database contents.--The information
maintained on the STEM Database shall be
displayed on the website in the following
manner:
(i) Separate information.--The STEM
Database shall provide separate
information for each of the fields of
science, technology, engineering, and
mathematics, and for postsecondary and
postbaccalaureate programs of financial
assistance.
(ii) Information on targeted
assistance.--The STEM Database shall
provide specific information on any
program of financial assistance that is
targeted to individuals based on
financial need, merit, or student
characteristics.
(iii) Contact and website
information.--The STEM Database shall
provide--
(I) standard contact
information that an interested
person may use to contact a
sponsor of any program of
financial assistance included
in the STEM Database; and
(II) if such sponsor
maintains a public website, a
link to the website.
(iv) Search and match capabilities.--
The STEM Database shall--
(I) have a search capability
that permits an individual to
search for information on the
basis of each category of the
information provided through
the STEM Database and on the
basis of combinations of
categories of the information
provided, including--
(aa) whether the
financial assistance is
need- or merit-based;
and
(bb) by relevant
academic majors; and
(II) have a match capability
that--
(aa) searches the
STEM Database for all
financial assistance
opportunities for which
an individual may be
qualified to apply,
based on the student
characteristics
provided by such
individual; and
(bb) provides
information to an
individual for only
those opportunities for
which such individual
is qualified, based on
the student
characteristics
provided by such
individual.
(v) Recommendation and disclaimer.--
The STEM Database shall provide, to the
users of the STEM Database--
(I) a recommendation that
students and families should
carefully review all of the
application requirements prior
to applying for any aid or
program of student financial
assistance; and
(II) a disclaimer that the
non-Federal programs of student
financial assistance presented
in the STEM Database are not
provided or endorsed by the
Department or the Federal
Government.
(C) Compilation of financial assistance
information.--In carrying out this paragraph,
the Secretary shall--
(i) consult with public and private
sources of scholarships, fellowships,
and other programs of student financial
assistance; and
(ii) make easily available a process
for such entities to provide regular
and updated information about the
scholarships, fellowships, or other
programs of student financial
assistance.
(D) Contract authorized.--In carrying out the
requirements of this paragraph, the Secretary
is authorized to enter into a contract with a
private entity with demonstrated expertise in
creating and maintaining databases such as the
one required under this paragraph, under which
contract the entity shall furnish, and
regularly update, all of the information
required to be maintained on the STEM Database.
(5) Dissemination of information.--The Secretary
shall take such actions, on an ongoing basis, as may be
necessary to disseminate information under this
subsection and to encourage the use of the information
by interested parties, including sending notices to
secondary schools and institutions of higher education.
(h) No User Fees for Department Financial Aid Websites.--No
fee shall be charged to any individual to access--
(1) a database or website of the Department that
provides information about higher education programs or
student financial assistance, including the [College
Navigator] College Dashboard website (or successor
website) and the websites and databases described in
this section and section 132; or
(2) information about higher education programs or
student financial assistance available through a
database or website of the Department.
SEC. 132. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.
(a) Definitions.--In this section:
[(1) College navigator website.--The term ``College
Navigator website'' means the College Navigator website
operated by the Department and includes any successor
website.]
(1) College dashboard website.--The term ``College
Dashboard website'' means the College Dashboard website
required under subsection (d).
(2) Cost of attendance.--The term ``cost of
attendance'' means the average annual cost of tuition
and fees, room and board, books, supplies, and
transportation for an institution of higher education
for a [first-time,] full-time undergraduate student
enrolled in the institution.
(3) Net price.--The term ``net price'' means the
average yearly price actually charged to [first-time,]
full-time undergraduate students receiving student aid
at an institution of higher education after deducting
such aid, which shall be determined by calculating the
difference between--
(A) the institution's cost of attendance for
the year for which the determination is made;
and
(B) the quotient of--
(i) the total amount of need-based
grant aid and merit-based grant aid,
from Federal, State, and institutional
sources, provided to such students
enrolled in the institution for such
year; and
(ii) the total number of such
students receiving such need-based
grant aid or merit-based grant aid for
such year.
(4) Tuition and fees.--The term ``tuition and fees''
means the average annual cost of tuition and fees for
an institution of higher education for [first-time,]
full-time undergraduate students enrolled in the
institution.
(b) Calculations for Public Institutions.--In making the
calculations regarding cost of attendance, net price, and
tuition and fees under this section with respect to a public
institution of higher education, the Secretary shall calculate
the cost of attendance, net price, and tuition and fees at such
institution in the manner described in subsection (a), except
that--
(1) the cost of attendance, net price, and tuition
and fees shall be calculated for [first-time,] full-
time undergraduate students enrolled in the institution
who are residents of the State in which such
institution is located; and
(2) in determining the net price, the average need-
based grant aid and merit-based grant aid described in
subsection (a)(3)(B) shall be calculated based on the
average total amount of such aid received by [first-
time,] full-time undergraduate students who are
residents of the State in which such institution is
located, divided by the total number of such resident
students receiving such need-based grant aid or merit-
based grant aid at such institution.
[(c) College Affordability and Transparency Lists.--
[(1) Availability of lists.--Beginning July 1, 2011,
the Secretary shall make publicly available on the
College Navigator website, in a manner that is sortable
and searchable by State, the following:
[(A) A list of the five percent of
institutions in each category described in
subsection (d) that have the highest tuition
and fees for the most recent academic year for
which data are available.
[(B) A list of the five percent of
institutions in each such category that have
the highest net price for the most recent
academic year for which data are available.
[(C) A list of the five percent of
institutions in each such category that have
the largest increase, expressed as a percentage
change, in tuition and fees over the most
recent three academic years for which data are
available, using the first academic year of the
three-year period as the base year to compute
such percentage change.
[(D) A list of the five percent of
institutions in each such category that have
the largest increase, expressed as a percentage
change, in net price over the most recent three
academic years for which data are available,
using the first academic year of the three-year
period as the base year to compute such
percentage change.
[(E) A list of the ten percent of
institutions in each such category that have
the lowest tuition and fees for the most recent
academic year for which data are available.
[(F) A list of the ten percent of
institutions in each such category that have
the lowest net price for the most recent
academic year for which data are available.
[(2) Annual updates.--The Secretary shall annually
update the lists described in paragraph (1) on the
College Navigator website.
[(d) Categories of Institutions.--The lists described in
subsection (c)(1) shall be compiled according to the following
categories of institutions that participate in programs under
title IV:
[(1) Four-year public institutions of higher
education.
[(2) Four-year private, nonprofit institutions of
higher education.
[(3) Four-year private, for-profit institutions of
higher education.
[(4) Two-year public institutions of higher
education.
[(5) Two-year private, nonprofit institutions of
higher education.
[(6) Two-year private, for-profit institutions of
higher education.
[(7) Less than two-year public institutions of higher
education.
[(8) Less than two-year private, nonprofit
institutions of higher education.
[(9) Less than two-year private, for-profit
institutions of higher education.
[(e) Reports by Institutions.--
[(1) Report to secretary.--If an institution of
higher education is included on a list described in
subparagraph (C) or (D) of subsection (c)(1), the
institution shall submit to the Secretary a report
containing the following information:
[(A) A description of the major areas in the
institution's budget with the greatest cost
increases.
[(B) An explanation of the cost increases
described in subparagraph (A).
[(C) A description of the steps the
institution will take toward the goal of
reducing costs in the areas described in
subparagraph (A).
[(D) In the case of an institution that is
included on the same list under subparagraph
(C) or (D) of subsection (c)(1) for two or more
consecutive years, a description of the
progress made on the steps described in
subparagraph (C) of this paragraph that were
included in the institution's report for the
previous year.
[(E) If the determination of any cost
increase described in subparagraph (A) is not
within the exclusive control of the
institution--
[(i) an explanation of the extent to
which the institution participates in
determining such cost increase;
[(ii) the identification of the
agency or instrumentality of State
government responsible for determining
such cost increase; and
[(iii) any other information the
institution considers relevant to the
report.
[(2) Information to the public.--The Secretary
shall--
[(A) issue an annual report that summarizes
all of the reports by institutions required
under paragraph (1) to the authorizing
committees; and
[(B) publish such report on the College
Navigator website.
[(f) Exemptions.--
[(1) In general.--An institution shall not be placed
on a list described in subparagraph (C) or (D) of
subsection (c)(1), and shall not be subject to the
reporting required under subsection (e), if the dollar
amount of the institution's increase in tuition and
fees, or net price, as applicable, is less than $600
for the three-year period described in such
subparagraph.
[(2) Update.--Beginning in 2014, and every three
years thereafter, the Secretary shall update the dollar
amount described in paragraph (1) based on annual
increases in inflation, using the Consumer Price Index
for each of the three most recent preceding years.
[(g) State Higher Education Spending Chart.--The Secretary
shall annually report on the College Navigator website, in
charts for each State, comparisons of--
[(1) the percentage change in spending by such State
per full-time equivalent student at all public
institutions of higher education in such State, for
each of the five most recent preceding academic years;
[(2) the percentage change in tuition and fees for
such students for all public institutions of higher
education in such State for each of the five most
recent preceding academic years; and
[(3) the percentage change in the total amount of
need-based aid and merit-based aid provided by such
State to full-time students enrolled in the public
institutions of higher education in the State for each
of the five most recent preceding academic years.]
[(h)] (c) Net Price Calculator.--
(1) Development of net price calculator.--Not later
than one year after the date of enactment of theHigher
Education Opportunity Act, the Secretary shall, in
consultation with institutions of higher education and
other appropriate experts, develop a net price
calculator to help current and prospective students,
families, and other consumers estimate the individual
net price of an institution of higher education for a
student. The calculator shall be developed in a manner
that enables current and prospective students,
families, and consumers to determine an estimate of a
current or prospective student's individual net price
at a particular institution.
(2) Calculation of individual net price.--For
purposes of this subsection, an individual net price of
an institution of higher education shall be calculated
in the same manner as the net price of such institution
is calculated under subsection (a)(3), except that the
cost of attendance and the amount of need-based and
merit-based aid available shall be calculated for the
individual student as much as practicable.
(3) Use of net price calculator by institutions.--Not
later than two years after the date on which the
Secretary makes the calculator developed under
paragraph (1) available to institutions of higher
education, each institution of higher education that
receives Federal funds under title IV shall make
publicly available on the institution's website a net
price calculator to help current and prospective
students, families, and other consumers estimate a
student's individual net price at such institution of
higher education. Such calculator may be a net price
calculator developed--
(A) by the Department pursuant to paragraph
(1); or
(B) by the institution of higher education,
if the institution's calculator includes, at a
minimum, the same data elements included in the
calculator developed under paragraph (1).
(4) Minimum requirements for net price calculators.--
Not later than 1 year after the date of the enactment
of the PROSPER Act, a net price calculator for an
institution of higher education shall meet the
following requirements:
(A) The link for the calculator shall--
(i) be clearly labeled as a net price
calculator and prominently, clearly,
and conspicuously posted in locations
on the website of such institution
where information on costs and aid is
provided and any other location that
the institution considers appropriate;
and
(ii) match in size and font to the
other prominent links on the webpage
where the link for the calculator is
displayed.
(B) The webpage displaying the results for
the calculator shall specify at least the
following information:
(i) The net price (as calculated
under subsection (a)(3)) for such
institution, which shall be the most
visually prominent figure on the
results screen.
(ii) Cost of attendance, including--
(I) tuition and fees;
(II) average annual cost of
room and board for the
institution for a full-time
undergraduate student enrolled
in the institution;
(III) average annual cost of
books and supplies for a full-
time undergraduate student
enrolled in the institution;
and
(IV) estimated cost of other
expenses (including personal
expenses and transportation)
for a full-time undergraduate
student enrolled in the
institution.
(iii) Estimated total need-based
grant aid and merit-based grant aid
from Federal, State, and institutional
sources that may be available to a
full-time undergraduate student.
(iv) Percentage of the full-time
undergraduate students enrolled in the
institution that received any type of
grant aid described in clause (iii).
(v) The disclaimer described in
paragraph (6).
(vi) In the case of a calculator
that--
(I) includes questions to
estimate the eligibility of a
student or prospective student
for veterans' education
benefits (as defined in section
480) or educational benefits
for active duty service
members, such benefits are
displayed on the results screen
in a manner that clearly
distinguishes such benefits
from the grant aid described in
clause (iii); or
(II) does not include
questions to estimate
eligibility for the benefits
described in subclause (I), the
results screen indicates that
certain students (or
prospective students) may
qualify for such benefits and
includes a link to information
about such benefits.
(C) The institution shall populate the
calculator with data from an academic year that
is not more than 2 academic years prior to the
most recent academic year.
(5) Prohibition on use of data collected by the net
price calculator.--A net price calculator for an
institution of higher education shall--
(A) clearly indicate which questions are
required to be completed for an estimate of the
net price from the calculator;
(B) in the case of a calculator that requests
contact information from users, clearly mark
such requests as optional and provide for an
estimate of the net price from the calculator
without requiring users to enter such
information; and
(C) prohibit any personally identifiable
information provided by users from being sold
or made available to third parties.
[(4)] (6) Disclaimer.--Estimates of an individual net
price determined using a net price calculator required
under paragraph (3) shall be accompanied by a clear and
conspicuous notice--
(A) stating that the estimate--
(i) does not represent a final
determination, or actual award, of
financial assistance;
(ii) shall not be binding on the
Secretary, the institution of higher
education, or the State; and
(iii) may change;
(B) stating that the student must complete
the Free Application for Federal Student Aid
described in section 483 in order to be
eligible for, and receive, an actual financial
aid award that includes Federal grant, loan, or
work-study assistance under title IV; and
(C) including a link to the website of the
Department that allows students to access the
Free Application for Federal Student Aid
described in section 483.
[(i) Consumer Information.--
[(1) Availability of title iv institution
information.--Not later than one year after the date of
enactment of theHigher Education Opportunity Act, the
Secretary shall make publicly available on the College
Navigator website, in simple and understandable terms,
the following information about each institution of
higher education that participates in programs under
title IV, for the most recent academic year for which
satisfactory data are available:
[(A) A statement of the institution's
mission.
[(B) The total number of undergraduate
students who applied to, were admitted by, and
enrolled in the institution.
[(C) For institutions that require SAT or ACT
scores to be submitted, the reading, writing,
mathematics, and combined scores on the SAT or
ACT, as applicable, for the middle 50 percent
range of the institution's freshman class.
[(D) The number of first-time, full-time, and
part-time students enrolled at the institution,
at the undergraduate and (if applicable)
graduate levels.
[(E) The number of degree- or certificate-
seeking undergraduate students enrolled at the
institution who have transferred from another
institution.
[(F) The percentages of male and female
undergraduate students enrolled at the
institution.
[(G) Of the first-time, full-time, degree- or
certificate-seeking undergraduate students
enrolled at the institution--
[(i) the percentage of such students
who are from the State in which the
institution is located;
[(ii) the percentage of such students
who are from other States; and
[(iii) the percentage of such
students who are international
students.
[(H) The percentages of first-time, full-
time, degree- or certificate-seeking students
enrolled at the institution, disaggregated by
race and ethnic background.
[(I) The percentage of undergraduate students
enrolled at the institution who are formally
registered with the office of disability
services of the institution (or the equivalent
office) as students with disabilities, except
that if such percentage is three percent or
less, the institution shall report ``three
percent or less''.
[(J) The percentages of first-time, full-
time, degree- or certificate-seeking
undergraduate students enrolled at the
institution who obtain a degree or certificate
within--
[(i) the normal time for completion
of, or graduation from, the student's
program;
[(ii) 150 percent of the normal time
for completion of, or graduation from,
the student's program; and
[(iii) 200 percent of the normal time
for completion of, or graduation from,
the student's program;
[(K) The number of certificates, associate
degrees, baccalaureate degrees, master's
degrees, professional degrees, and doctoral
degrees awarded by the institution.
[(L) The undergraduate major areas of study
at the institution with the highest number of
degrees awarded.
[(M) The student-faculty ratio, the number of
full-time and part-time faculty, and the number
of graduate assistants with primarily
instructional responsibilities, at the
institution.
[(N)(i) The cost of attendance for first-
time, full-time undergraduate students enrolled
in the institution who live on campus;
[(ii) the cost of attendance for first-time,
full-time undergraduate students enrolled in
the institution who live off campus; and
[(iii) in the case of a public institution of
higher education and notwithstanding subsection
(b)(1), the costs described in clauses (i) and
(ii), for--
[(I) first-time, full-time students
enrolled in the institution who are
residents of the State in which the
institution is located; and
[(II) first-time, full-time students
enrolled in the institution who are not
residents of such State.
[(O) The average annual grant amount
(including Federal, State, and institutional
aid) awarded to a first-time, full-time
undergraduate student enrolled at the
institution who receives financial aid.
[(P) The average annual amount of Federal
student loans provided through the institution
to undergraduate students enrolled at the
institution.
[(Q) The total annual grant aid awarded to
undergraduate students enrolled at the
institution, from the Federal Government, a
State, the institution, and other sources known
by the institution.
[(R) The percentage of first-time, full-time
undergraduate students enrolled at the
institution receiving Federal, State, and
institutional grants, student loans, and any
other type of student financial assistance
known by the institution, provided publicly or
through the institution, such as Federal work-
study funds.
[(S) The number of students enrolled at the
institution receiving Federal Pell Grants.
[(T) The institution's cohort default rate,
as defined under section 435(m).
[(U) The information on campus safety
required to be collected under section 485(i).
[(V) A link to the institution's website that
provides, in an easily accessible manner, the
following information:
[(i) Student activities offered by
the institution.
[(ii) Services offered by the
institution for individuals with
disabilities.
[(iii) Career and placement services
offered by the institution to students
during and after enrollment.
[(iv) Policies of the institution
related to transfer of credit from
other institutions.
[(W) A link to the appropriate section of the
Bureau of Labor Statistics website that
provides information on regional data on
starting salaries in all major occupations.
[(X) Information required to be submitted
under paragraph (4) and a link to the
institution pricing summary page described in
paragraph (5).
[(Y) In the case of an institution that was
required to submit a report under subsection
(e)(1), a link to such report.
[(Z) The availability of alternative tuition
plans, which may include guaranteed tuition
plans.
[(2) Annual updates.--The Secretary shall annually
update the information described in paragraph (1) on
the College Navigator website.
[(3) Consultation.--The Secretary shall regularly
consult with current and prospective college students,
family members of such students, institutions of higher
education, and other experts to improve the usefulness
and relevance of the College Navigator website, with
respect to the presentation of the consumer information
collected in paragraph (1).
[(4) Data collection.--The Commissioner for Education
Statistics shall continue to update and improve the
Integrated Postsecondary Education Data System
(referred to in this section as ``IPEDS''), including
the reporting of information by institutions and the
timeliness of the data collected.
[(5) Institution pricing summary page.--
[(A) Availability of list of participating
institutions.--The Secretary shall make
publicly available on the College Navigator
website in a sortable and searchable format a
list of all institutions of higher education
that participate in programs under title IV,
which list shall, for each institution, include
the following:
[(i) The tuition and fees for each of
the three most recent academic years
for which data are available.
[(ii) The net price for each of the
three most recent available academic
years for which data are available.
[(iii)(I) During the period beginning
July 1, 2010, and ending June 30, 2013,
the net price for students receiving
Federal student financial aid under
title IV, disaggregated by the income
categories described in paragraph (6),
for the most recent academic year for
which data are available.
[(II) Beginning July 1, 2013, the net
price for students receiving Federal
student financial aid under title IV,
disaggregated by the income categories
described in paragraph (6), for each of
the three most recent academic years
for which data are available.
[(iv) The average annual percentage
change and average annual dollar change
in such institution's tuition and fees
for each of the three most recent
academic years for which data are
available.
[(v) The average annual percentage
change and average annual dollar change
in such institution's net price for
each of the three most recent preceding
academic years for which data are
available.
[(vi) A link to the webpage on the
College Navigator website that provides
the information described in paragraph
(1) for the institution.
[(B) Annual updates.--The Secretary shall
annually update the lists described in
subparagraph (A) on the College Navigator
website.
[(6) Income categories.--
[(A) In general.--For purposes of reporting
the information required under this subsection,
the following income categories shall apply for
students who receive Federal student financial
aid under title IV:
[(i) $0-30,000.
[(ii) $30,001-48,000.
[(iii) $48,001-75,000.
[(iv) $75,001-110,000.
[(v) $110,001 and more.
[(B) Adjustment.--The Secretary may adjust
the income categories listed in subparagraph
(A) using the Consumer Price Index if the
Secretary determines such adjustment is
necessary.]
(d) Consumer Information.--
(1) Availability of title iv institution
information.--The Secretary shall develop and make
publicly available a website to be known as the
``College Dashboard website'' in accordance with this
section and prominently display on such website, in
simple, understandable, and unbiased terms for the most
recent academic year for which satisfactory data are
available, the following information with respect to
each institution of higher education that participates
in a program under title IV:
(A) A link to the website of the institution.
(B) An identification of the type of
institution as one of the following:
(i) A four-year public institution of
higher education.
(ii) A four-year private, nonprofit
institution of higher education.
(iii) A four-year private,
proprietary institution of higher
education.
(iv) A two-year public institution of
higher education.
(v) A two-year private, nonprofit
institution of higher education.
(vi) A two-year private, proprietary
institution of higher education.
(vii) A less than two-year public
institution of higher education.
(viii) A less than two-year private,
nonprofit institution of higher
education.
(ix) A less than two-year private,
proprietary institution of higher
education.
(C) The number of students enrolled at the
institution--
(i) as undergraduate students, if
applicable; and
(ii) as graduate students, if
applicable.
(D) The student-faculty ratio.
(E) The percentage of degree-seeking or
certificate-seeking undergraduate students
enrolled at the institution who obtain a degree
or certificate within--
(i) 100 percent of the normal time
for completion of, or graduation from,
the program in which the student is
enrolled;
(ii) 150 percent of the normal time
for completion of, or graduation from,
the program in which the student is
enrolled;
(iii) 200 percent of the normal time
for completion of, or graduation from,
the program in which the student is
enrolled; and
(iv) 300 percent of the normal time
for completion of, or graduation from,
the program in which the student is
enrolled, for institutions at which the
highest degree offered is predominantly
an associate's degree.
(F)(i) The average net price per year for
undergraduate students enrolled at the
institution who received Federal student
financial aid under title IV based on
dependency status and an income category
selected by the user of the College Dashboard
website from a list containing the following
income categories:
(I) $0 to $30,000.
(II) $30,001 to $48,000.
(III) $48,001 to $75,000.
(IV) $75,001 to $110,000.
(V) $110, 001 to $150,000.
(VI) Over $150,000.
(ii) A link to the net price calculator for
such institution.
(G) The percentage of undergraduate and
graduate students who obtained a certificate or
degree from the institution who borrowed
Federal student loans--
(i) set forth separately for each
educational program offered by the
institution; and
(ii) made available in a format that
allows a user of the College Dashboard
website to view such percentage by
selecting from a list of such
educational programs.
(H) The average Federal student loan debt
incurred by a student who obtained a
certificate or degree in an educational program
from the institution and who borrowed Federal
student loans in the course of obtaining such
certificate or degree--
(i) set forth separately for each
educational program offered by the
institution; and
(ii) made available in a format that
allows a user of the College Dashboard
website to view such student loan debt
information by selecting from a list of
such educational programs.
(I) The median earnings of students who
obtained a certificate or degree in an
educational program from the institution and
who received Federal student financial aid
under title IV in the course of obtaining such
certificate or degree--
(i) in the fifth and tenth years
following the year in which the
students obtained such certificate or
degree;
(ii) set forth separately by
educational program; and
(iii) made available in a format that
allows a user of the College Dashboard
website to view such median earnings
information by selecting from a list of
such educational programs.
(J) A link to the webpage of the institution
containing campus safety data with respect to
such institution.
(2) Additional information.--The Secretary shall
publish on websites that are linked to through the
College Dashboard website, for the most recent academic
year for which satisfactory data is available, the
following information with respect to each institution
of higher education that participates in a program
under title IV:
(A) Enrollment.--The following enrollment
information:
(i) The percentages of male and
female undergraduate students enrolled
at the institution.
(ii) The percentages of undergraduate
students enrolled at the institution--
(I) full-time; and
(II) less than full-time.
(iii) In the case of an institution
other than an institution that provides
all courses and programs through online
education, of the undergraduate
students enrolled at the institution--
(I) the percentage of such
students who are residents of
the State in which the
institution is located;
(II) the percentage of such
students who are not residents
of such State; and
(III) the percentage of such
students who are international
students.
(iv) The percentages of undergraduate
students enrolled at the institution,
disaggregated by--
(I) race and ethnic
background;
(II) classification as a
student with a disability;
(III) recipients of a Federal
Pell Grant;
(IV) recipients of assistance
under a tuition assistance
program conducted by the
Department of Defense under
section 1784a or 2007 of title
10, United States Code, or
other authorities available to
the Department of Defense or
veterans' education benefits
(as defined in section 480);
and
(V) recipients of a Federal
student loan.
(B) Completion.--The information required
under paragraph (1)(E), disaggregated by--
(i) recipients of a Federal Pell
Grant;
(ii) race and ethnic background;
(iii) classification as a student
with a disability;
(iv) recipients of assistance under a
tuition assistance program conducted by
the Department of Defense under section
1784a or 2007 of title 10, United
States Code, or other authorities
available to the Department of Defense
or veterans' education benefits (as
defined in section 480); and
(v) recipients of a Federal student
loan.
(C) Costs.--The following cost information:
(i) The cost of attendance for full-
time undergraduate students enrolled in
the institution who live on campus.
(ii) The cost of attendance for full-
time undergraduate students enrolled in
the institution who live off campus.
(iii) The cost of tuition and fees
for full-time undergraduate students
enrolled in the institution.
(iv) The cost of tuition and fees per
credit hour or credit hour equivalency
for undergraduate students enrolled in
the institution less than full time.
(v) In the case of a public
institution of higher education (other
than an institution described in clause
(vi)) and notwithstanding subsection
(b)(1), the costs described in clauses
(i) and (ii) for--
(I) full-time students
enrolled in the institution who
are residents of the State in
which the institution is
located; and
(II) full-time students
enrolled in the institution who
are not residents of such
State.
(vi) In the case of a public
institution of higher education that
offers different tuition rates for
students who are residents of a
geographic subdivision smaller than a
State and students not located in such
geographic subdivision and
notwithstanding subsection (b)(1), the
costs described in clauses (i) and (ii)
for--
(I) full-time students
enrolled at the institution who
are residents of such
geographic subdivision;
(II) full-time students
enrolled at the institution who
are residents of the State in
which the institution is
located but not residents of
such geographic subdivision;
and
(III) full-time students
enrolled at the institution who
are not residents of such
State.
(D) Financial aid.--The following information
with respect to financial aid:
(i) The average annual grant amount
(including Federal, State, and
institutional aid) awarded to an
undergraduate student enrolled at the
institution who receives grant aid, and
the percentage of undergraduate
students receiving such aid.
(ii) The percentage of undergraduate
students enrolled at the institution
receiving Federal, State, and
institutional grants, student loans,
and any other type of student financial
assistance known by the institution,
provided publicly or through the
institution, such as Federal work-study
funds.
(iii) The loan repayment rate (as
defined in section 481B) for each
educational program at such
institution.
(3) Other data matters.--
(A) Completion data.--The Commissioner of
Education Statistics shall ensure that the
information required under paragraph (1)(E)
includes information with respect to all
students at an institution, in a manner that
accurately reflects the actual length of the
program, including students other than first-
time, full-time students and students who
transfer to another institution, in a manner
that the Commissioner considers appropriate.
(B) Adjustment of income categories.--The
Secretary may annually adjust the range of each
of the income categories described in paragraph
(1)(F) to account for a change in the Consumer
Price Index for All Urban Consumers as
determined by the Bureau of Labor Statistics if
the Secretary determines an adjustment is
necessary.
(4) Institutional comparison.--The Secretary shall
include on the College Dashboard website a method for
users to easily compare the information required under
paragraphs (1) and (2) between institutions.
(5) Updates.--
(A) Data.--The Secretary shall update the
College Dashboard website not less than
annually.
(B) Technology and format.--The Secretary
shall regularly assess the format and
technology of the College Dashboard website and
make any changes or updates that the Secretary
considers appropriate.
(6) Consumer testing.--
(A) In general.--In developing and
maintaining the College Dashboard website, the
Secretary, in consultation with appropriate
departments and agencies of the Federal
Government, shall conduct consumer testing with
appropriate persons, including current and
prospective college students, family members of
such students, institutions of higher
education, and experts, to ensure that the
College Dashboard website is usable and easily
understandable and provides useful and relevant
information to students and families.
(B) Recommendations for changes.--The
Secretary shall submit to the authorizing
committees any recommendations that the
Secretary considers appropriate for changing
the information required to be provided on the
College Dashboard website under paragraphs (1)
and (2) based on the results of the consumer
testing conducted under subparagraph (A).
(7) Provision of appropriate links to prospective
students after submission of fafsa.--The Secretary
shall provide to each student who submits a Free
Application for Federal Student Aid described in
section 483 a link to the webpage of the College
Dashboard website that contains the information
required under paragraph (1) for each institution of
higher education such student includes on such
Application.
(8) Interagency coordination.--The Secretary, in
consultation with each appropriate head of a department
or agency of the Federal Government, shall ensure to
the greatest extent practicable that any information
related to higher education that is published by such
department or agency is consistent with the information
published on the College Dashboard website.
(9) Data collection.--The Commissioner for Education
Statistics shall continue to update and improve the
Integrated Postsecondary Education Data System,
including by reducing institutional reporting burden
and improving the timeliness of the data collected.
(10) Data privacy.--The Secretary shall ensure any
information made available under this section is made
available in accordance with section 444 of the General
Education Provisions Act (commonly known as the
``Family Educational Rights and Privacy Act of 1974'').
[(j) Multi-Year Tuition Calculator.--
[(1) Development of multi-year tuition calculator.--
Not later than one year after the date of enactment of
theHigher Education Opportunity Act, the Secretary
shall, in consultation with institutions of higher
education, financial planners, and other appropriate
experts, develop a multi-year tuition calculator to
help current and prospective students, families of such
students, and other consumers estimate the amount of
tuition an individual may pay to attend an institution
of higher education in future years.
[(2) Calculation of multi-year tuition.--The multi-
year tuition calculator described in paragraph (1)
shall--
[(A) allow an individual to select an
institution of higher education for which the
calculation shall be made;
[(B) calculate an estimate of tuition and
fees for each year of the normal duration of
the program of study at such institution by--
[(i) using the tuition and fees for
such institution, as reported under
subsection (i)(5)(A)(i), for the most
recent academic year for which such
data are reported; and
[(ii) determining an estimated annual
percentage change for each year for
which the calculation is made, based on
the annual percentage change in such
institution's tuition and fees, as
reported under subsection
(i)(5)(A)(iv), for the most recent
three-year period for which such data
are reported;
[(C) calculate an estimate of the total
amount of tuition and fees to complete a
program of study at such institution, based on
the normal duration of such program, using the
estimate calculated under subparagraph (B) for
each year of the program of study;
[(D) provide the individual with the option
to replace the estimated annual percentage
change described in subparagraph (B)(ii) with
an alternative annual percentage change
specified by the individual, and calculate an
estimate of tuition and fees for each year and
an estimate of the total amount of tuition and
fees using the alternative percentage change;
[(E) in the case of an institution that
offers a multi-year tuition guarantee program,
allow the individual to have the estimates of
tuition and fees described in subparagraphs (B)
and (C) calculated based on the provisions of
such guarantee program for the tuition and fees
charged to a student, or cohort of students,
enrolled for the duration of the program of
study; and
[(F) include any other features or
information determined to be appropriate by the
Secretary.
[(3) Availability and comparison.--The multi-year
tuition calculator described in paragraph (1) shall be
available on the College Navigator website and shall
allow current and prospective students, families of
such students, and consumers to compare information and
estimates under this subsection for multiple
institutions of higher education.
[(4) Disclaimer.--Each calculation of estimated
tuition and fees made using the multi-year tuition
calculator described in paragraph (1) shall be
accompanied by a clear and conspicuous notice--
[(A) stating that the calculation--
[(i) is only an estimate and not a
guarantee of the actual amount the
student may be charged;
[(ii) is not binding on the
Secretary, the institution of higher
education, or the State; and
[(iii) may change, subject to the
availability of financial assistance,
State appropriations, and other
factors;
[(B) stating that the student must complete
the Free Application for Federal Student Aid
described in section 483 in order to be
eligible for, and receive, an actual financial
aid award that includes Federal grant, loan, or
work-study assistance under title IV; and
[(C) including a link to the website of the
Department that allows students to access the
Free Application for Federal Student Aid
described in section 483.]
[(k)] (e) Student Aid Recipient Survey.--
(1) Survey required.--The Secretary, acting through
the Commissioner for Education Statistics, shall
conduct, on a State-by-State basis, a survey of
recipients of Federal student financial aid under title
IV--
(A) to identify the population of students
receiving such Federal student financial aid;
(B) to describe the income distribution and
other socioeconomic characteristics of
recipients of such Federal student financial
aid;
(C) to describe the combinations of aid from
Federal, State, and private sources received by
such recipients from all income categories;
(D) to describe the--
(i) debt burden of such loan
recipients, and their capacity to repay
their education debts; and
(ii) the impact of such debt burden
on the recipients' course of study and
post-graduation plans;
(E) to describe the impact of the cost of
attendance of postsecondary education in the
determination by students of what institution
of higher education to attend; and
(F) to describe how the costs of textbooks
and other instructional materials affect the
costs of postsecondary education for students.
(2) Frequency.--The survey shall be conducted on a
regular cycle and not less often than once every four
years.
(3) Survey design.--The survey shall be
representative of students from all types of
institutions, including full-time and part-time
students, undergraduate, graduate, and professional
students, and current and former students.
(4) Dissemination.--The Commissioner for Education
Statistics shall disseminate to the public, in printed
and electronic form, the information resulting from the
survey.
[(l) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out this section.]
SEC. 133. TEXTBOOK INFORMATION.
(a) Purpose and Intent.--The purpose of this section is to
ensure that students have access to affordable course materials
by decreasing costs to students and enhancing transparency and
disclosure with respect to the selection, purchase, sale, and
use of course materials. It is the intent of this section to
encourage all of the involved parties, including faculty,
students, administrators, institutions of higher education,
bookstores, distributors, and publishers, to work together to
identify ways to decrease the cost of college textbooks and
supplemental materials for students while supporting the
academic freedom of faculty members to select high quality
course materials for students.
(b) Definitions.--In this section:
(1) Bundle.--The term ``bundle'' means one or more
college textbooks or other supplemental materials that
may be packaged together to be sold as course materials
for one price.
(2) College textbook.--The term ``college textbook''
means a textbook or a set of textbooks, used for, or in
conjunction with, a course in postsecondary education
at an institution of higher education.
(3) Course schedule.--The term ``course schedule''
means a listing of the courses or classes offered by an
institution of higher education for an academic period,
as defined by the institution.
(4) Custom textbook.--The term ``custom textbook''--
(A) means a college textbook that is compiled
by a publisher at the direction of a faculty
member or other person or adopting entity in
charge of selecting course materials at an
institution of higher education; and
(B) may include, alone or in combination,
items such as selections from original
instructor materials, previously copyrighted
publisher materials, copyrighted third-party
works, and elements unique to a specific
institution, such as commemorative editions.
(5) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in [section 102] section 101 or 102.
(6) Integrated textbook.--The term ``integrated
textbook'' means a college textbook that is--
(A) combined with materials developed by a
third party and that, by third-party
contractual agreement, may not be offered by
publishers separately from the college textbook
with which the materials are combined; or
(B) combined with other materials that are so
interrelated with the content of the college
textbook that the separation of the college
textbook from the other materials would render
the college textbook unusable for its intended
purpose.
(7) Publisher.--The term ``publisher'' means a
publisher of college textbooks or supplemental
materials involved in or affecting interstate commerce.
(8) Substantial content.--The term ``substantial
content'' means parts of a college textbook such as new
chapters, new material covering additional eras of
time, new themes, or new subject matter.
(9) Supplemental material.--The term ``supplemental
material'' means educational material developed to
accompany a college textbook that--
(A) may include printed materials, computer
disks, website access, and electronically
distributed materials; and
(B) is not being used as a component of an
integrated textbook.
(c) Publisher Requirements.--
(1) College textbook pricing information.--When a
publisher provides a faculty member or other person or
adopting entity in charge of selecting course materials
at an institution of higher education receiving Federal
financial assistance with information regarding a
college textbook or supplemental material, the
publisher shall include, with any such information and
in writing (which may include electronic
communications), the following:
(A) The price at which the publisher would
make the college textbook or supplemental
material available to the bookstore on the
campus of, or otherwise associated with, such
institution of higher education and, if
available, the price at which the publisher
makes the college textbook or supplemental
material available to the public.
(B) The copyright dates of the three previous
editions of such college textbook, if any.
(C) A description of the substantial content
revisions made between the current edition of
the college textbook or supplemental material
and the previous edition, if any.
(D)(i) Whether the college textbook or
supplemental material is available in any other
format, including paperback and unbound; and
(ii) for each other format of the college
textbook or supplemental material, the price at
which the publisher would make the college
textbook or supplemental material in the other
format available to the bookstore on the campus
of, or otherwise associated with, such
institution of higher education and, if
available, the price at which the publisher
makes such other format of the college textbook
or supplemental material available to the
public.
(2) Unbundling of college textbooks from supplemental
materials.--A publisher that sells a college textbook
and any supplemental material accompanying such college
textbook as a single bundle shall also make available
the college textbook and each supplemental material as
separate and unbundled items, each separately priced.
(3) Custom textbooks.--To the maximum extent
practicable, a publisher shall provide the information
required under this subsection with respect to the
development and provision of custom textbooks.
(d) Provision of ISBN College Textbook Information in Course
Schedules.--To the maximum extent practicable, each institution
of higher education receiving Federal financial assistance
shall--
(1) disclose, on the institution's Internet course
schedule and in a manner of the institution's choosing,
the International Standard Book Number and retail price
information of required and recommended college
textbooks and supplemental materials for each course
listed in the institution's course schedule used for
preregistration and registration purposes, except
that--
(A) if the International Standard Book Number
is not available for such college textbook or
supplemental material, then the institution
shall include in the Internet course schedule
the author, title, publisher, and copyright
date for such college textbook or supplemental
material; and
(B) if the institution determines that the
disclosure of the information described in this
subsection is not practicable for a college
textbook or supplemental material, then the
institution shall so indicate by placing the
designation ``To Be Determined'' in lieu of the
information required under this subsection; and
(2) if applicable, include on the institution's
written course schedule a notice that textbook
information is available on the institution's Internet
course schedule, and the Internet address for such
schedule.
(e) Availability of Information for College Bookstores.--An
institution of higher education receiving Federal financial
assistance shall make available to a college bookstore that is
operated by, or in a contractual relationship or otherwise
affiliated with, the institution, as soon as is practicable
upon the request of such college bookstore, the most accurate
information available regarding--
(1) the institution's course schedule for the
subsequent academic period; and
(2) for each course or class offered by the
institution for the subsequent academic period--
(A) the information required by subsection
(d)(1) for each college textbook or
supplemental material required or recommended
for such course or class;
(B) the number of students enrolled in such
course or class; and
(C) the maximum student enrollment for such
course or class.
(f) Additional Information.--An institution disclosing the
information required by subsection (d)(1) is encouraged to
disseminate to students information regarding--
(1) available institutional programs for renting
textbooks or for purchasing used textbooks;
(2) available institutional guaranteed textbook buy-
back programs;
(3) available institutional alternative content
delivery programs; or
(4) other available institutional cost-saving
strategies.
(g) GAO Report.--Not later than July 1, 2013, the Comptroller
General of the United States shall report to the authorizing
committees on the implementation of this section by
institutions of higher education, college bookstores, and
publishers. The report shall particularly examine--
(1) the availability of college textbook information
on course schedules;
(2) the provision of pricing information to faculty
of institutions of higher education by publishers;
(3) the use of bundled and unbundled material in the
college textbook marketplace, including the adoption of
unbundled materials by faculty and the use of
integrated textbooks by publishers; and
(4) the implementation of this section by
institutions of higher education, including the costs
and benefits to such institutions and to students.
(h) Rule of Construction.--Nothing in this section shall be
construed to supercede the institutional autonomy or academic
freedom of instructors involved in the selection of college
textbooks, supplemental materials, and other classroom
materials.
(i) No Regulatory Authority.--The Secretary shall not
promulgate regulations with respect to this section.
* * * * * * *
SEC. 138. REVIEW OF CURRENT DATA COLLECTION AND FEASIBILITY STUDY OF
IMPROVED DATA COLLECTION.
(a) In General.--Not later than 2 years after the date of the
enactment of the PROSPER Act, the Secretary shall, in order to
help improve the information available to students and families
and to eliminate significant and burdensome data collection
requirements placed on institutions under this Act--
(1) complete a review of all data reporting
requirements on institutions under this Act;
(2) determine which requirements are duplicative or
no longer necessary to provide meaningful information
for compliance, accountability, or transparency in
decision making; and
(3) examine the best way to collect data that
includes all students from institutions that will--
(A) eliminate or reduce the burden and
duplication of data reporting; and
(B) capture the data necessary to ensure
compliance, accountability, and transparency in
decision making which shall include, at a
minimum--
(i) enrollment;
(ii) retention;
(iii) transfer;
(iv) completion; and
(v) post-collegiate earnings; and
(4) implement the changes necessary to improve the
data reporting process for institutions, and submit a
report to the authorizing committees on any legislative
changes necessary to make such improvements.
(b) Consultation.--In conducting the review under subsection
(a)(1), the Secretary shall consult with--
(1) all applicable offices within the Department to
ensure the review captures all data reporting
requirements under this Act; and
(2) relevant stakeholders, including students,
parents, institutions of higher education, and privacy
experts.
(c) Data Collection and Reporting.--In examining the best way
to collect data under subsection (a)(3), the Secretary shall
explore the feasibility of working with the National Student
Clearinghouse to establish a third-party method to collect and
produce institution and program-level analysis of the data
determined necessary to report, and how such data reported to
the clearinghouse could be secured, while considering the
following:
(1) Whether data reported to the clearinghouse can
accurately reflect institutional and program-level
enrollment, retention, transfer, and completion rates.
(2) How much duplication of reporting can be
eliminated and if such reporting can replace the
reporting to the Integrated Postsecondary Education
Data System (IPEDS), including whether the data quality
will be maintained or improved from the current data
provided to the Department through IPEDS.
(3) Whether such reporting to the clearinghouse can
protect the confidentiality of the reported data, while
providing more accurate institutional performance
measures.
(4) Whether such reporting can be made compatible
with systems that include post-graduation outcomes
including employment and earnings data.
(5) Whether the use of the clearinghouse for such
data reporting will change the current interaction
between institutions and the clearinghouse.
(6) Whether the clearinghouse can meet the
requirements of such reporting without transferring any
disaggregated data that would be personally
identifiable to the Department of Education.
(7) Whether the clearinghouse can ensure the
Department of Education would never have access to any
health data, student discipline records or data,
elementary and secondary education data, or information
relating to citizenship or national origin status,
course grades, individual postsecondary entrance
examination results, political affiliation, or
religion, as a result of producing information for
program level analysis of the data received from
institutions of higher education.
(8) Whether the clearinghouse can provide the
analysis under this subsection without maintaining or
transferring, publishing, or submitting any data
containing the information described in paragraph (7)
to any entity, including any Federal or State agency.
(d) Interim Report.--Not later than 1 year after the date of
the enactment of the PROSPER Act, the Secretary shall submit to
the authorizing committees a report on the Secretary's progress
in carrying out this section.
(e) Rule of Construction.--Nothing in this section shall be
construed to authorize the development of a nationwide database
of personally identifiable information on individuals involved
in studies or other collections of data under this Act.
PART D--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
SEC. 141. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL
STUDENT FINANCIAL ASSISTANCE.
(a) Establishment and Purpose.--
(1) Establishment.--There is established in the
Department a Performance-Based Organization (hereafter
referred to as the ``PBO'') which shall be a discrete
management unit responsible for managing the
administrative and oversight functions supporting the
programs authorized under title IV of this Act, as
specified in subsection (b).
(2) Purposes.--The purposes of the PBO are--
(A) to improve service to students and other
participants in the student financial
assistance programs authorized under title IV,
including making those programs more
understandable to students and their parents;
(B) to reduce the costs of administering
those programs;
(C) to increase the accountability of the
officials responsible for administering the
operational aspects of these programs;
(D) to provide greater flexibility in the
management and administration of the Federal
student financial assistance programs;
(E) to integrate the information systems
supporting the Federal student financial
assistance programs;
(F) to maximize transparency in the operation
of Federal student financial assistance
programs;
(G) to maximize stakeholder engagement in the
operation of and accountability for such
programs;
[(F)] (H) to implement an open, common,
integrated system for the delivery of student
financial assistance under title IV; and
[(G)] (I) to develop and maintain a student
financial assistance system that contains
complete, accurate, and timely data to ensure
program integrity.
(b) General Authority.--
(1) Authority of secretary.--Notwithstanding any
other provision of this part, the Secretary shall
maintain responsibility for the development and
promulgation of policy and regulations relating to the
programs of student financial assistance under title
IV. In the exercise of its functions, the PBO shall be
subject to the direction of the Secretary. The
Secretary shall--
(A) request the advice of, and work in
cooperation with, the Chief Operating Officer
in developing regulations, policies,
administrative guidance, or procedures
affecting the Federal student financial
assistance programs authorized under title IV;
(B) request cost estimates from the Chief
Operating Officer for system changes required
by specific policies proposed by the Secretary;
and
(C) assist the Chief Operating Officer in
identifying goals for--
(i) the administration of the systems
used to administer the Federal student
financial assistance programs
authorized under title IV; [and]
(ii) the updating of such systems to
current technology[.]; and
(iii) acquiring senior managers and
other personnel with demonstrated
management ability and expertise in
consumer lending.
(2) PBO functions.--Subject to paragraph (1), the PBO
shall be responsible for the administration of Federal
student financial assistance programs authorized under
title IV, excluding the development of policy relating
to such programs but including the following:
(A) The administrative, accounting, and
financial management functions for the Federal
student financial assistance programs
authorized under title IV, including--
(i) the collection, processing, and
transmission of data to students,
institutions, lenders, State agencies,
and other authorized parties;
(ii) the design and technical
specifications for software development
and procurement for systems supporting
the Federal student financial
assistance programs authorized under
title IV;
(iii) all software and hardware
acquisitions and all information
technology contracts related to the
administration and management of
student financial assistance under
title IV;
(iv) all aspects of contracting for
the information and financial systems
supporting the Federal student
financial assistance programs
authorized under title IV;
(v) providing all customer service,
training, and user support related to
the administration of the Federal
student financial assistance programs
authorized under title IV; and
(vi) ensuring the integrity of the
Federal student financial assistance
programs authorized under title IV.
(B) Annual development of a budget for the
activities and functions of the PBO, in
consultation with the Secretary, and for
consideration and inclusion in the Department's
annual budget submission.
(C) Collecting input from stakeholders on the
operation of all Federal student assistance
programs and accountability practices relating
to such programs, and ensuring that such input
informs operation of the PBO and is provided to
the Secretary to inform policy creation related
to Federal student financial assistance
programs.
(3) Additional functions.--The Secretary may allocate
to the PBO such additional functions as the Secretary
and the Chief Operating Officer determine are necessary
or appropriate to achieve the purposes of the PBO.
(4) Independence.--Subject to paragraph (1), in
carrying out its functions, the PBO shall exercise
independent control of its budget allocations and
expenditures, personnel decisions and processes,
procurements, and other administrative and management
functions.
(5) Audits and review.--The PBO shall be subject to
the usual and customary Federal audit procedures and to
review by the Inspector General of the Department.
(6) Changes.--
(A) In general.--[The Secretary] Not less
frequently than once annually, the Secretary
and the Chief Operating Officer shall consult
concerning the effects of policy, market, or
other changes on the ability of the PBO to
achieve the goals and objectives established in
the performance plan described in subsection
(c).
(B) Report.--On an annual basis, after
carrying out the consultation required under
subparagraph (A), the Secretary and the Chief
Operating Officer shall jointly submit to the
authorizing committees a report that includes--
(i) a summary of the consultation;
and
(ii) a description of any actions
taken as a result of the consultation.
[(B)] (C) Revisions to agreement.--The
Secretary and the Chief Operating Officer may
revise the annual performance agreement
described in subsection (d)(4) in light of
policy, market, or other changes that occur
after the Secretary and the Chief Operating
Officer enter into the agreement.
(c) Performance Plan, Report, and Briefing.--
(1) Performance plan.--
(A) In general.--[Each year,] Not less
frequently than once every three years, the
Secretary and Chief Operating Officer shall
agree on, and make available to the public, a
performance plan for the PBO for the
[succeeding 5] succeeding 3 years that
establishes measurable goals and objectives for
the organization.
[(B) Consultation.--In developing the 5-year
performance plan and any revision to the plan,
the Secretary and the Chief Operating Officer
shall consult with students, institutions of
higher education, Congress, lenders, the
Advisory Committee on Student Financial
Assistance, and other interested parties not
less than 30 days prior to the implementation
of the performance plan or revision.]
(B) Consultation.--
(i) Plan development.--Beginning not
later than 12 months before issuing
each 3-year performance plan under
subparagraph (A), the Secretary and the
Chief Operating Officer shall consult
with students, institutions of higher
education, Congress, lenders, and other
interested parties regarding the
development of the plan. In carrying
out such consultation, the Secretary
shall seek public comment consistent
with the requirements of subchapter II
of chapter 5 of title 5, United States
Code (commonly known as the
``Administrative Procedure Act'').
(ii) Revision.--Not later than 90
days before implementing any revision
to the performance plan described in
subparagraph (A), the Secretary shall
consult with students, institutions of
higher education, Congress, lenders,
and other interested parties regarding
such revision.
(C) Areas.--The plan shall include a concise
statement of the goals for a modernized system
for the delivery of student financial
assistance under title IV and identify action
steps necessary to achieve such goals and
target dates upon which such action steps will
be taken and such goals will be achieved. The
plan shall address the PBO's responsibilities
in the following areas:
(i) Improving service.--Improving
service to students and other
participants in student financial aid
programs authorized under under title
IV, including making those programs
more understandable to students and
their parents.
(ii) Reducing costs.--Reducing the
costs of administering those programs.
(iii) Improvement and integration of
support systems.--Improving and
integrating the systems that support
those programs.
(iv) Delivery and information
system.--Developing open, common, and
integrated systems for programs
authorized under under title IV.
(v) Ensuring transparency.--
Maximizing the transparency in the
operations of the PBO, including
complying with the data reporting
requirements under section 144.
[(v)] (vi) Other areas.--Any other
areas identified by the Secretary.
(2) Annual report.--Each year, the Chief Operating
Officer shall prepare and submit to Congress, through
the Secretary, an annual report on the performance of
the PBO, including an evaluation of the extent to which
the PBO met the goals and objectives contained in the
[5-year] 3-year performance plan described in paragraph
(1) for the preceding year. The annual report shall
include the following:
(A) An independent financial audit of the
expenditures of both the PBO and the programs
administered by the PBO.
(B) Financial and performance requirements
applicable to the PBO under the Chief Financial
Officers Act of 1990 and the Government
Performance and Results Act of 1993.
(C) The results achieved by the PBO during
the year relative to the goals established in
the organization's performance plan, including
an explanation of the specific steps the
Secretary and the Chief Operating Officer will
take to address any such goals that were not
achieved.
(D) The evaluation rating of the performance
of the Chief Operating Officer and senior
managers under subsections (d)(4) and (e)(2),
including the amounts of bonus compensation
awarded to these individuals, in the aggregate
and per individual.
(E) [Recommendations] Specific
recommendations for legislative and regulatory
changes to improve service to students and
their families, and to improve program
efficiency and integrity.
(F) A description of the performance
evaluation system developed under subsection
(d)(6).
[(F)] (G) Other such information as the
Director of the Office of Management and Budget
shall prescribe for performance based
organizations.
(3) Consultation with stakeholders.--The Chief
Operating Officer, in preparing the report described in
paragraph (2), shall [establish appropriate means to]
consult with students, borrowers, institutions,
lenders, guaranty agencies, secondary markets, and
others involved in the delivery system of student aid
under title IV--
(A) regarding the degree of satisfaction with
the
delivery system[; and] and the PBO;
(B) to seek suggestions on means to improve
the
delivery system[.] and the PBO; and
(C) through a nationally-representative
survey, that at a minimum shall evaluate the
degree of satisfaction with the delivery system
and the PBO.
(4) Briefing on enforcement of student loan
provisions.--The Secretary shall, upon request, provide
a briefing to the members of the authorizing committees
on the steps the Department has taken to ensure--
(A) the integrity of the student loan
programs; and
(B) that lenders and guaranty agencies are
adhering to the requirements of title IV.
(d) Chief Operating Officer.--
(1) Appointment.--The management of the PBO shall be
vested in a Chief Operating Officer who shall be
appointed by the Secretary to a term of not less than 3
and not more than 5 years, and compensated without
regard to chapters 33, 51, and 53 of title 5, United
States Code. The appointment shall be made on the basis
of demonstrated management ability and expertise in
information technology, including experience with
financial systems, and without regard to political
affiliation or activity.
(2) Reappointment.--[The Secretary may reappoint]
Except as provided in paragraph (4)(C), the Chief
Operating Officer to subsequent terms of not less than
3 and not more than 5 years, so long as the performance
of the Chief Operating Officer, as set forth in the
performance agreement described in paragraph (4), is
satisfactory.
(3) Removal.--The Chief Operating Officer may be
removed by--
(A) the President; or
(B) the Secretary, for misconduct or failure
to meet performance goals set forth in the
performance agreement in paragraph (4).
The President or Secretary shall communicate the
reasons for any such removal to the authorizing
committees.
(4) Performance agreement.--
(A) In general.--Each year, the Secretary and
the Chief Operating Officer shall enter into an
annual performance agreement, that shall set
forth specific, measurable organization and
individual goals for the Chief Operating
Officer and metrics used to measure progress
toward such goals.
[(B) Transmittal.--The final agreement, and
any revision to the final agreement, shall be
transmitted to the authorizing committees, and
made publicly available.]
(B) Transmittal and public availability.--The
Secretary shall--
(i) transmit to the authorizing
committees the final version of, and
any subsequent revisions to, the
agreement entered into under
subparagraph (A); and
(ii) before the expiration of the
period of 5 business days beginning
after the date on which the agreement
is transmitted under clause (i), make
such agreement publicly available on a
publicly accessible website of the
Department of Education.
(C) Loss of eligibility.--If the agreement
under subparagraph (A) is not made publicly
available before the expiration of the period
described in subparagraph (B)(ii), the Chief
Operating Officer shall not be eligible for
reappointment under paragraph (2).
(5) Compensation.--
(A) In general.--The Chief Operating Officer
is authorized to be paid at an annual rate of
basic pay not to exceed the maximum rate of
basic pay for the Senior Executive Service
under section 5382 of title 5, United States
Code, including any applicable locality-based
comparability payment that may be authorized
under section 5304(h)(2)(B) of such title. The
compensation of the Chief Operating Officer
shall be considered for purposes of section
207(c)(2)(A) of title 18, United States Code,
to be the equivalent of that described under
clause (ii) of section 207(c)(2)(A) of such
title.
[(B) Bonus.--In addition, the Chief Operating
Officer may receive a bonus in an amount that
does not exceed 50 percent of such annual rate
of basic pay, based upon the Secretary's
evaluation of the Chief Operating Officer's
performance in relation to the goals set forth
in the performance agreement described in
paragraph (4).]
(B) Bonus.--In addition, the Chief Operating
Officer may receive a bonus in the following
amounts:
(i) For a period covered by a
performance agreement entered into
under paragraph (4) before the date of
the enactment of the PROSPER Act, an
amount that does not exceed 50 percent
of the annual rate basic pay of the
Chief Operating Officer, based upon the
Secretary's evaluation of the Chief
Operating Officer's performance in
relation to the goals set forth in the
performance agreement.
(ii) For a period covered by a
performance agreement entered into
under paragraph (4) on or after the
date of the enactment of the PROSPER
Act, an amount that does not exceed 40
percent of the annual rate basic pay of
the Chief Operating Officer, based upon
the Secretary's evaluation of the Chief
Operating Officer's performance in
relation to the goals set forth in the
performance agreement.
(C) Payment.--Payment of a bonus under
subparagraph (B) may be made to the Chief
Operating Officer only to the extent that such
payment does not cause the Chief Operating
Officer's total aggregate compensation in a
calendar year to equal or exceed the amount of
the President's salary under section 102 of
title 3, United States Code.
(6) Performance evaluation system.--The Secretary
shall develop a system to evaluate the performance of
the Chief Operating Officer and any senior managers
appointed by such Officer under subsection (e). Such
system shall--
(A) take into account the extent to which
each individual attains the specific,
measurable organizational and individual goals
set forth in the performance agreement
described in paragraph (4)(A) and subsection
(e)(2) (as the case may be); and
(B) evaluate each individual using a rating
system that accounts for the full spectrum of
performance levels, from the failure of an
individual to meet the goals described in
clause (i) to an individual's success in
meeting or exceeding such goals.
(e) Senior Management.--
(1) Appointment.--
(A) In general.--The Chief Operating Officer
may appoint such senior managers as that
officer determines necessary without regard to
the provisions of title 5, United States Code,
governing appointments in the competitive
service.
(B) Compensation.--The senior managers
described in subparagraph (A) may be paid
without regard to the provisions of chapter 51
and subchapter III of chapter 53 of such title
relating to classification and General Schedule
pay rates.
(2) Performance agreement.--Each year, the Chief
Operating Officer and each senior manager appointed
under this subsection shall enter into an annual
performance agreement that sets forth measurable
[organization and individual goals] specific,
measurable organization and individual goals and the
metrics used to measure progress toward such goals. The
agreement shall be subject to review and renegotiation
at the end of each term.
(3) Compensation.--
(A) In general.--A senior manager appointed
under this subsection may be paid at an annual
rate of basic pay of not more than the maximum
rate of basic pay for the Senior Executive
Service under section 5382 of title 5, United
States Code, including any applicable locality-
based comparability payment that may be
authorized under section 5304(h)(2)(C) of such
title. The compensation of a senior manager
shall be considered for purposes of section
207(c)(2)(A) of title 18, United States Code,
to be the equivalent of that described under
clause (ii) of section 207(c)(2)(A) of such
title.
[(B) Bonus.--In addition, a senior manager
may receive a bonus in an amount such that the
manager's total annual compensation does not
exceed 125 percent of the maximum rate of basic
pay for the Senior Executive Service, including
any applicable locality-based comparability
payment, based upon the Chief Operating
Officer's evaluation of the manager's
performance in relation to the goals set forth
in the performance agreement described in
paragraph (2).]
(B) Bonus.--In addition, a senior manager may
receive a bonus in the following amounts:
(i) For a period covered by a
performance agreement entered into
under paragraph (2) before the date of
the enactment of the PROSPER Act, an
amount such that the manager's total
annual compensation does not exceed 125
percent of the maximum rate of basic
pay for the Senior Executive Service,
including any applicable locality-based
comparability payment, based upon the
Chief Operating Officer's evaluation of
the manager's performance in relation
to the goals set forth in the
performance agreement.
(ii) For a period covered by a
performance agreement entered into
under paragraph (2) on or after the
date of the enactment of the PROSPER
Act, an amount such that the manager's
total annual compensation does not
exceed 120 percent of the maximum rate
of basic pay for the Senior Executive
Service, including any applicable
locality-based comparability payment,
based upon the Chief Operating
Officer's evaluation of the manager's
performance in relation to the goals
set forth in the performance agreement.
(4) Removal.--A senior manager shall be removable by
the Chief Operating Officer, or by the Secretary if the
position of Chief Operating Officer is vacant.
(f) Advisory Board.--
(1) Establishment and purpose.--Not later than one
year after the date of the enactment of the PROSPER
Act, the Secretary shall establish an Advisory Board
(referred to in this subsection as the ``Board'') for
the PBO. The purpose of such Board shall be to conduct
oversight over the PBO and the Chief Operating Officer
and senior managers described under subsection (e) to
ensure that the PBO is meeting the purposes described
in this section and the goals in the performance plan
described under such section.
(2) Membership.--
(A) Board members.--The Board shall consist
of 7 members, one of whom shall be the
Secretary.
(B) Chairman.--A Chairman of the Board shall
be elected by the Board from among its members
for a 2-year term.
(C) Secretary as an ex officio member.--The
Secretary, ex officio--
(i) shall--
(I) serve as a member of the
Board;
(II) be a voting member of
the Board; and
(III) be eligible to be
elected by the Board to serve
as chairman or vice chairman of
the Board; and
(ii) shall not be subject to the
terms or compensation requirements
described in this paragraph that are
applicable to the other members of the
Board.
(D) Additional board members.--Each member of
the Board (excluding the Secretary) shall be
appointed by the Secretary.
(E) Terms.--
(i) In general.--Each Board member,
except for the Secretary and the Board
members described in clause (ii)(II),
shall serve 5-year terms.
(ii) Initial members.--
(I) First 3 members.--The
first 3 members confirmed to
serve on the Board after the
date of enactment of the
PROSPER Act shall serve for 5-
year terms.
(II) Other members.--The
fourth, fifth, and sixth
members confirmed to serve on
the Board after such date of
enactment shall serve for 3-
year terms.
(iii) Reappointment.--The Secretary
may reappoint a Board member for one
additional 5-year term.
(iv) Vacancies.--
(I) In general.--Not later
than 30 days after a vacancy of
the Board occurs, the Secretary
shall publish a Federal
Register notice soliciting
nominations for the position.
(II) Filling vacancy.--Not
later than 90 days after such
vacancy occurs, such vacancy
shall be filled in the same
manner as the original
appointment was made, except
that--
(aa) the appointment
shall be for the
remainder of the
uncompleted term; and
(bb) such member may
be reappointed under
clause (iii).
(F) Membership qualifications and
prohibitions.--
(i) Qualifications.--The members of
the board, other than the Secretary,
shall be appointed without regard to
political affiliation and solely on the
basis of their professional experience
and expertise in--
(I) the management of large
and financially significant
organizations, including banks
and commercial lending
companies; or
(II) Federal student
financial assistance programs.
(ii) Conflicts of interest among
board members.--Before appointing
members of the Board, the Secretary
shall establish rules and procedures to
address any potential conflict of
interest between a member of the Board
and responsibilities of the Board,
including prohibiting membership for
individuals with a pecuniary interest
in the activities of the PBO.
(G) No compensation.--Board members shall
serve without pay.
(H) Expenses of board members.--Each member
of the Board shall receive travel expenses and
other permissible expenses, including per diem
in lieu of subsistence, in accordance with
applicable provisions under title 5, United
States Code.
(3) Board responsibilities.--The Board shall have the
following responsibilities:
(A) Conducting general oversight over the
functioning and operation of the PBO,
including--
(i) ensuring that the reporting and
planning requirements of this section
are fulfilled by the PBO; and
(ii) ensuring that the Chief
Operating Officer acquires senior
managers with demonstrated management
ability and expertise in consumer
lending (as described in subsection
(b)(1)(C)(iii)).
(B) Approving the appointment or
reappointment of a Chief Operating Officer,
except that the board shall have no authority
to approve or disapprove the reappointment of
the Chief Operating Officer who holds such
position on the date of enactment of the
PROSPER Act.
(C) Making recommendations with respect to
the suitability of any bonuses proposed to be
provided to the Chief Operating Officer or
senior managers described under subsections (d)
and (e), to ensure that a bonus is not awarded
to the Officer or a senior manager in a case in
which such Officer or manager has failed to
meet goals set for them under the relevant
performance plan under subsections (d)(4) and
(e)(2), respectively.
(D) Approving any performance plan
established for the PBO.
(4) Board operations.--
(A) Meetings.--The Board shall meet at least
twice per year and at such other times as the
chairperson determines appropriate.
(B) Powers of chairperson.--Except as
otherwise provided by a majority vote of the
Board, the powers of the chairperson shall
include--
(i) establishing committees;
(ii) setting meeting places and
times;
(iii) establishing meeting agendas;
and
(iv) developing rules for the conduct
of business.
(C) Quorum.--Four members of the Board shall
constitute a quorum. A majority of members
present and voting shall be required for the
Board to take action.
(D) Administration.--The Federal Advisory
Committee Act shall not apply with respect to
the Board, other than sections 10, 11 and 12 of
such Act.
(5) Annual report.--
(A) In general.--Not less frequently than
once annually, the Board shall submit to the
authorizing committees a report on the results
of the work conducted by the PBO.
(B) Contents.--Each report under clause (i)
shall include--
(i) a description of the oversight
work of the Board and the results of
such work;
(ii) a description of statutory
requirements of this section and
section 144 where the PBO is not in
compliance;
(iii) recommendations on the
appointment or reappointment of a Chief
Operating Officer;
(iv) recommendations regarding bonus
payments for the Chief Operating
Officer and senior managers; and
(v) recommendations for the
authorizing Committees and the
Appropriations Committees on--
(I) any statutory changes
needed that would enhance the
ability of the PBO to meet the
purposes of this section; and
(II) any recommendations for
the Secretary or the Chief
Operating Officer that will
improve the operations of the
PBO.
(vi) Issuance and public release.--
Each report under clause (i) shall be
posted on the publicly accessible
website of the Department of Education.
(vii) PBO recommendations.--Not later
than 180 days after the submission of
each report under clause (i), the Chief
Operating Officer shall respond to each
recommendation individually, which
shall include a description of such
actions that the Officer is undertaking
to address such recommendation.
(C) Staff.--
(i) In general.--The Secretary may
appoint to the Board not more than 7
employees to assist in carrying out the
duties of the Board under this section.
(ii) Technical employees.--Such
appointments may include, for terms not
to exceed 3 years and without regard to
the provisions of title 5, United
States Code, governing appointments in
the competitive service, not more than
3 technical employees who may be paid
without regard to the provisions of
chapter 51 and subchapter III of
chapter 53 of such title relating to
classification and General Schedule pay
rates, but no individual so appointed
shall be paid in excess of the rate
authorized for GS-18 of the General
Schedule.
(iii) Detailees.--The Secretary may
detail, on a reimbursable basis, any of
the personnel of the Department for the
purposes described in clause (i). Such
employees shall serve without
additional pay, allowances, or
benefits.
(iv) Statutory construction.--Nothing
in this subparagraph shall be construed
to provide for an increase in the total
number of permanent full-time
equivalent positions in the Department
or any other department or agency of
the Federal Government.
(6) Briefing on activities of the oversight board.--
The Secretary shall, upon request, provide a briefing
to the authorizing committees on the steps the Board
has taken to carry out its responsibilities under this
subsection.
[(f)] (g) Student Loan Ombudsman.--
(1) Appointment.--The Chief Operating Officer, in
consultation with the Secretary, shall appoint a
Student Loan Ombudsman to provide timely assistance to
borrowers of loans made, insured, or guaranteed under
title IV by performing the functions described in
paragraph (3).
(2) Public information.--The Chief Operating Officer
shall disseminate information about the availability
and functions of the Ombudsman to students, borrowers,
and potential borrowers, as well as institutions of
higher education, lenders, guaranty agencies, loan
servicers, and other participants in those student loan
programs.
(3) Functions of ombudsman.--The Ombudsman shall--
(A) in accordance with regulations of the
Secretary, receive, review, and attempt to
resolve informally complaints from borrowers of
loans described in paragraph (1), including, as
appropriate, attempts to resolve such
complaints within the Department of Education
and with institutions of higher education,
lenders, guaranty agencies, loan servicers, and
other participants in the loan programs
described in paragraph (1); and
(B) compile and analyze data on borrower
complaints and make appropriate
recommendations.
(4) Report.--Each year, the Ombudsman shall submit a
report to the Chief Operating Officer, for inclusion in
the annual report under subsection (c)(2), that
describes the activities, and evaluates the
effectiveness of the Ombudsman during the preceding
year.
[(g)] (h) Personnel Flexibility.--
(1) Personnel ceilings.--The PBO shall not be subject
to any ceiling relating to the number or grade of
employees.
(2) Administrative flexibility.--The Chief Operating
Officer shall work with the Office of Personnel
Management to develop and implement personnel
flexibilities in staffing, classification, and pay that
meet the needs of the PBO, subject to compliance with
title 5, United States Code.
(3) Excepted service.--The Chief Operating Officer
may appoint, without regard to the provisions of title
5, United States Code, governing appointments in the
competitive service, technical and professional
employees to administer the functions of the PBO. These
employees may be paid without regard to the provisions
of chapter 51 and subchapter III of chapter 53 of such
title relating to classification and General Schedule
pay rates.
[(h)] (i) Establishment of a Fair and Equitable System for
Measuring Staff Performance.--The PBO shall establish an annual
performance management system, subject to compliance with title
5, United States Code and consistent with applicable provisions
of law and regulations, which strengthens the effectiveness of
the PBO by providing for establishing goals or objectives for
individual, group, or organizational performance (or any
combination thereof), consistent with the performance plan of
the PBO and its performance planning procedures, including
those established under the Government Performance and Results
Act of 1993, and communicating such goals or objectives to
employees.
[(i)] (j) Authorization of Appropriations.--The Secretary
shall allocate from funds made available under section 458 such
funds as are appropriate to the functions assumed by the PBO.
In addition, there are authorized to be appropriated such sums
as may be necessary to carry out the purposes of this part.
* * * * * * *
SEC. 144. ADMINISTRATIVE DATA TRANSPARENCY.
(a) In General.--To improve the transparency of the student
aid delivery system, the Secretary and the Chief Operating
Officer shall collect and publish information on the
performance of student loan programs under title IV in
accordance with this section.
(b) Disclosures.--
(1) In general.--The Secretary and the Chief
Operating Officer shall publish on a publicly
accessible website of the Department of Education the
following aggregate statistics with respect to the
performance of student loans under title IV:
(A) The number of borrowers who paid off the
total outstanding balance of principal and
interest on their loans before the end of the
10-year or consolidated loan repayment
schedule.
(B) The number of loans under each type of
deferment and forbearance.
(C) The average length of time a loan stays
in default.
(D) The percentage of loans in default among
borrowers who completed the program of study
for which the loans were made.
(E) The number of borrowers enrolled in an
income-based repayment plan who make monthly
payments of $0 and the average student loan
debt of such borrowers.
(F) The number of students whose loan
balances are growing because such students are
not paying the full amount of interest accruing
on the loans.
(G) The number of borrowers entering income-
based repayment plans to get out of default.
(H) The number of borrowers in income-based
repayment plans who have outstanding student
loans from graduate school, and the average
balance of such loans.
(I) With respect to the public service loan
forgiveness program under section 455(m)--
(i) the number of applications
submitted and processed;
(ii) the number of borrowers granted
loan forgiveness;
(iii) the amount of loan debt
forgiven; and
(iv) the number of borrowers granted
loan forgiveness, and the amount of the
loan debt forgiven, disaggregated by
each category of employer that employs
individuals in public service jobs (as
defined in section 455(m)(3)(B),
including--
(I) the Federal Government,
or a State or local government;
(II) 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; and
(III) a non-profit
organization not described in
subclause (II).
(J) Any other aggregate statistics the
Secretary and the Chief Operating Officer
determine to be necessary to adequately inform
the public of the performance of the student
loan programs under title IV.
(2) Disaggregation.--The statistics described in
clauses (i) through (iii) of paragraph (1)(I) shall be
disaggregated--
(A) by the number or amount for most recent
quarter;
(B) by the total number or amount as of the
date of publication;
(C) by repayment plan;
(D) by borrowers seeking loan forgiveness for
loans made for an undergraduate course of
study; and
(E) by borrowers seeking loan forgiveness for
loans made for a graduate course of study.
(3) Quarterly updates.--The statistics published
under paragraph (1) shall be updated not less
frequently than once each fiscal quarter.
(c) Information Collection.--
(1) In general.--The Secretary and the Chief
Operating Officer shall collect information on the
performance of student loans under title IV over time,
including--
(A) measurement of the cash flow generated by
such loans as determined by assessing monthly
payments on the loans over time;
(B) the income level and employment status of
borrowers during repayment;
(C) the loan repayment history of borrowers
prior to default;
(D) the progress of borrowers in making
monthly payments on loans after defaulting on
the loans; and
(E) such other information as the Secretary
and the Chief Operating Officer determine to be
appropriate.
(2) Availability.--
(A) In general.--The information collected
under paragraph (1) shall be made available
biannually to organizations and researchers
that--
(i) submit to the Secretary and the
Chief Operating officer a request for
such information; and
(ii) enter into an agreement with the
National Center for Education
Statistics under which the organization
or researcher (as the case may be)
agrees to use the information in
accordance with the privacy laws
described in subparagraph (B).
(B) Privacy protections.--The privacy laws
described in this subparagraph are the
following:
(i) Section 183 of the Education
Sciences Reform Act of 2002 (20 U.S.C.
9573).
(ii) The Privacy Act of 1974 (5
U.S.C. 552a).
(iii) Section 444 of the General
Education Provisions Act (commonly
known as the ``Family Educational
Rights and Privacy Act of 1974'') (20
U.S.C. 1232g).
(iv) Subtitle A of title V of the E-
Government Act of 2002 (44 U.S.C. 3501
note).
(C) Format.--The information described in
subparagraph (A) shall be made available in the
format of a data file that contains an
statistically accurate, representative sample
of all borrowers of loans under title IV.
(d) Data Sharing.--The Secretary and the Chief Operating
Officer may enter into cooperative data sharing agreements with
other Federal or State agencies to ensure the accuracy of
information collected and published under this section.
(e) Privacy.--The Secretary and the Chief Operating Officer
shall ensure that any information collected, published, or
otherwise made available under this section does not reveal
personally identifiable information.
PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATION LOANS
SEC. 151. DEFINITIONS.
In this part:
(1) Agent.--The term ``agent'' means an officer or
employee of a covered institution or an institution-
affiliated organization.
(2) Covered institution.--The term ``covered
institution'' means any institution of higher
education, as such term is defined in [section 102]
section 101 or 102, that receives any Federal funding
or assistance.
(3) Education loan.--The term ``education loan''
(except when used as part of the term ``private
education loan'') means--
(A) any loan made, insured, or guaranteed
under part B of title IV;
(B) any loan made under part D of title IV;
[or]
(C) any loan made under part E of title IV
after the date of enactment of the PROSPER Act;
or
[(C)] (D) a private education loan.
(4) Eligible lender.--The term ``eligible lender''
has the meaning given such term in section 435(d).
(5) Institution-affiliated organization.--The term
``institution-affiliated organization''--
(A) means any organization that--
(i) is directly or indirectly related
to a covered institution; and
(ii) is engaged in the practice of
recommending, promoting, or endorsing
education loans for students attending
such covered institution or the
families of such students;
(B) may include an alumni organization,
athletic organization, foundation, or social,
academic, or professional organization, of a
covered institution; and
(C) notwithstanding subparagraphs (A) and
(B), does not include any lender with respect
to any education loan secured, made, or
extended by such lender.
(6) Lender.--The term ``lender'' (except when used as
part of the terms ``eligible lender'' and ``private
educational lender'')--
(A) means--
(i) in the case of a loan made,
insured, or guaranteed under part B of
title IV, an eligible lender;
(ii) in the case of any loan issued
or provided to a student under part D
of title IV, the Secretary; [and]
(iii) in the case of a loan issued or
provided to a student under part E of
title IV on or after the date of
enactment of the PROSPER Act;
[(iii)] (iv) in the case of a private
education loan, a private educational
lender as defined in section 140 of the
Truth in Lending Act; and
(B) includes any other person engaged in the
business of securing, making, or extending
education loans on behalf of the lender.
(7) Officer.--The term ``officer'' includes a
director or trustee of a covered institution or
institution-affiliated organization, if such individual
is treated as an employee of such covered institution
or institution-affiliated organization, respectively.
(8) Preferred lender arrangement.--The term
``preferred lender arrangement''--
(A) means an arrangement or agreement between
a lender and a covered institution or an
institution-affiliated organization of such
covered institution--
(i) under which a lender provides or
otherwise issues education loans to the
students attending such covered
institution or the families of such
students; and
(ii) that relates to such covered
institution or such institution-
affiliated organization recommending,
promoting, or endorsing the education
loan products of the lender; and
(B) does not include--
(i) arrangements or agreements with
respect to loans under part D of title
IV; [or]
(ii) arrangements or agreements with
respect to loans under part E of title
IV; or
[(ii)] (iii) arrangements or
agreements with respect to loans that
originate through the auction pilot
program under section 499(b).
(9) Private education loan.--The term ``private
education loan'' has the meaning given the term in
section 140 of the Truth in Lending Act.
SEC. 152. RESPONSIBILITIES OF COVERED INSTITUTIONS, INSTITUTION-
AFFILIATED ORGANIZATIONS, AND LENDERS.
(a) Responsibilities of Covered Institutions and Institution-
Affiliated Organizations.--
(1) Disclosures by covered institutions and
institution-affiliated organizations.--
(A) Preferred lender arrangement
disclosures.--In addition to the disclosures
required by subsections (a)(27) and (h) of
section 487 (if applicable), a covered
institution, or an institution-affiliated
organization of such covered institution, that
participates in a preferred lender arrangement
shall disclose--
(i) on such covered institution's or
institution-affiliated organization's
website and in all informational
materials described in subparagraph (C)
that describe or discuss education
loans--
(I) the maximum amount of
Federal grant and loan aid
under title IV available to
students, in an easy to
understand format;
(II) the information required
to be disclosed pursuant to
section 153(a)(2)(A)(i), for
each type of loan described in
section 151(3)(A) that is
offered pursuant to a preferred
lender arrangement of the
institution or organization to
students of the institution or
the families of such students;
and
(III) a statement that such
institution is required to
process the documents required
to obtain a loan under part B
of title IV from any eligible
lender the student selects; and
(ii) on such covered institution's or
institution-affiliated organization's
website and in all informational
materials described in subparagraph (C)
that describe or discuss private
education loans--
(I) in the case of a covered
institution, the information
that the Board of Governors of
the Federal Reserve System
requires to be disclosed under
section 128(e)(11) of the Truth
in Lending Act (15 U.S.C.
1638(e)(11)), for each type of
private education loan offered
pursuant to a preferred lender
arrangement of the institution
to students of the institution
or the families of such
students; and
(II) in the case of an
institution-affiliated
organization of a covered
institution, the information
the Board of Governors of the
Federal Reserve System requires
to be disclosed under section
128(e)(1) of the Truth in
Lending Act (15 U.S.C.
1638(e)(1)), for each type of
private education loan offered
pursuant to a preferred lender
arrangement of the organization
to students of such institution
or the families of such
students.
(B) Private education loan disclosures.--A
covered institution, or an institution-
affiliated organization of such covered
institution, that provides information
regarding a private education loan from a
lender to a prospective borrower shall--
[(i) provide the prospective borrower
with the information the Board of
Governors of the Federal Reserve System
requires to be disclosed under section
128(e)(1) of the Truth in Lending Act
(15 U.S.C. 1638(e)(1)) for such loan;]
(i) make available to the prospective
borrower on a website or with
informational material, the information
the Board of Governors of the Federal
Reserve System requires the lender to
provide to the covered institution
under section 128(e)(11) of the Truth
in Lending Act (15 U.S.C. 1638(e)(11))
for such loan;
(ii) inform the prospective borrower
that--
(I) the prospective borrower
may qualify for loans or other
assistance under title IV; and
(II) the terms and conditions
of loans made, insured, or
guaranteed under title IV may
be more favorable than the
provisions of private education
loans; and
(iii) ensure that information
regarding private education loans is
presented in such a manner as to be
distinct from information regarding
loans that are made, insured, or
guaranteed under title IV.
(C) Informational materials.--The
informational materials described in this
subparagraph are publications, mailings, or
electronic messages or materials that--
(i) are distributed to prospective or
current students of a covered
institution and families of such
students; and
(ii) describe or discuss the
financial aid opportunities available
to students at an institution of higher
education.
(D) Special rule.--Notwithstanding any other
provision of law, a covered institution, or an
institution-affiliated organization of such
covered institution, shall not be required to
provide any information regarding private
education loans to prospective borrowers except
for the information described in subparagraph
(B).
(2) Use of institution name.--A covered institution,
or an institution-affiliated organization of such
covered institution, that enters into a preferred
lender arrangement with a lender regarding private
education loans shall not agree to the lender's use of
the name, emblem, mascot, or logo of such institution
or organization, or other words, pictures, or symbols
readily identified with such institution or
organization, in the marketing of private education
loans to students attending such institution in any way
that implies that the loan is offered or made by such
institution or organization instead of the lender.
(3) Use of lender name.--A covered institution, or an
institution-affiliated organization of such covered
institution, that enters into a preferred lender
arrangement with a lender regarding private education
loans shall ensure that the name of the lender is
displayed in all information and documentation related
to such loans.
(b) Lender Responsibilities.--
(1) Disclosures by lenders.--
(A) Disclosures to borrowers.--
(i) Federal education loans.--For
each education loan that is made,
insured, or guaranteed under [part B or
D] part B, D, or E of title IV (other
than a loan made under section 428C or
a Federal Direct Consolidation Loan),
at or prior to the time the lender
disburses such loan, the lender shall
provide the prospective borrower or
borrower, in writing (including through
electronic means), with the disclosures
described in subsections (a) and (c) of
section 433.
(ii) Private education loans.--For
each of a lender's private education
loans, the lender shall comply with the
disclosure requirements under section
128(e) of the Truth in Lending Act (15
U.S.C. 1638(e)).
(B) Disclosures to the secretary.--
(i) In general.--Each lender of a
loan made, insured, or guaranteed under
part B of title IV shall, on an annual
basis, report to the Secretary--
(I) any reasonable expenses
paid or provided under section
435(d)(5)(D) or paragraph
(3)(B) or (7) of section 487(e)
to any agent of a covered
institution who--
(aa) is employed in
the financial aid
office of a covered
institution; or
(bb) otherwise has
responsibilities with
respect to education
loans or other
financial aid of the
institution; and
(II) any similar expenses
paid or provided to any agent
of an institution-affiliated
organization who is involved in
the practice of recommending,
promoting, or endorsing
education loans.
(ii) Contents of reports.--Each
report described in clause (i) shall
include--
(I) the amount for each
specific instance in which the
lender provided such expenses;
(II) the name of any agent
described in clause (i) to whom
the expenses were paid or
provided;
(III) the dates of the
activity for which the expenses
were paid or provided; and
(IV) a brief description of
the activity for which the
expenses were paid or provided.
(iii) Report to congress.--The
Secretary shall summarize the
information received from the lenders
under this subparagraph in a report and
transmit such report annually to the
authorizing committees.
(2) Certification by lenders.--Not later than 18
months after the date of enactment of theHigher
Education Opportunity Act--
(A) in addition to any other disclosure
required under Federal law, each lender of a
loan made, insured, or guaranteed under part B
of title IV that participates in one or more
preferred lender arrangements shall annually
certify the lender's compliance with the
requirements of this Act; and
(B) if an audit of a lender is required
pursuant to section 428(b)(1)(U)(iii), the
lender's compliance with the requirements under
this section shall be reported on and attested
to annually by the auditor of such lender.
SEC. 153. LOAN INFORMATION TO BE DISCLOSED AND MODEL DISCLOSURE FORM
FOR COVERED INSTITUTIONS, INSTITUTION-AFFILIATED
ORGANIZATIONS, AND LENDERS PARTICIPATING IN
PREFERRED LENDER ARRANGEMENTS.
(a) Duties of the Secretary.--
(1) Determination of minimum disclosures.--
(A) In general.--Not later than 18 months
after the date of enactment of theHigher
Education Opportunity Act, the Secretary, in
coordination with the Board of Governors of the
Federal Reserve System, shall determine the
minimum information that lenders, covered
institutions, and institution-affiliated
organizations of such covered institutions
participating in preferred lender arrangements
shall make available regarding education loans
described in section 151(3)(A) that are offered
to students and the families of such students.
(B) Consultation and content of minimum
disclosures.--In carrying out subparagraph (A),
the Secretary shall--
(i) consult with students, the
families of such students,
representatives of covered institutions
(including financial aid
administrators, admission officers, and
business officers), representatives of
institution-affiliated organizations,
secondary school guidance counselors,
lenders, loan servicers, and guaranty
agencies; and
(ii) include, in the minimum
information under subparagraph (A) that
is required to be made available, the
information that the Board of Governors
of the Federal Reserve System requires
to be disclosed under section 128(e)(1)
of the Truth in Lending Act (15 U.S.C.
1638(e)(1)), modified as necessary to
apply to such loans[; and].
[(iii) consider the merits of
requiring each covered institution, and
each institution-affiliated
organization of such covered
institution, with a preferred lender
arrangement to provide to prospective
borrowers and the families of such
borrowers the following information for
each type of education loan offered
pursuant to such preferred lender
arrangement:
[(I) The interest rate and
terms and conditions of the
loan for the next award year,
including loan forgiveness and
deferment.
[(II) Information on any
charges, such as origination
and Federal default fees, that
are payable on the loan, and
whether those charges will be--
[(aa) collected by
the lender at or prior
to the disbursal of the
loan, including whether
the charges will be
deducted from the
proceeds of the loan or
paid separately by the
borrower; or
[(bb) paid in whole
or in part by the
lender.
[(III) The annual and
aggregate maximum amounts that
may be borrowed.
[(IV) The average amount
borrowed from the lender by
students who graduated from
such institution in the
preceding year with
certificates, undergraduate
degrees, graduate degrees, and
professional degrees, as
applicable, and who obtained
loans of such type from the
lender for the preceding year.
[(V) The amount the borrower
may pay in interest, based on a
standard repayment plan and the
average amount borrowed from
the lender by students who
graduated from such institution
in the preceding year and who
obtained loans of such type
from the lender for the
preceding year, for--
[(aa) borrowers of
loans made under
section 428;
[(bb) borrowers of
loans made under
section 428B or 428H,
who pay the interest
while in school; and
[(cc) borrowers of
loans made under
section 428B or 428H,
who do not pay the
interest while in
school.
[(VI) The consequences for
the borrower of defaulting on a
loan, including limitations on
the discharge of an education
loan in bankruptcy.
[(VII) Contact information
for the lender.
[(VIII) Other information
suggested by the persons and
entities with whom the
Secretary has consulted under
clause (i).]
(2) Required disclosures.--After making the
determinations under paragraph (1), the Secretary, in
coordination with the Board of Governors of the Federal
Reserve System and after consultation with the public,
shall--
(A)(i) provide that the information
determined under paragraph (1) shall be
disclosed by covered institutions, and
institution-affiliated organizations of such
covered institutions, with preferred lender
arrangements to prospective borrowers and the
families of such borrowers regarding the
education loans described in section 151(3)(A)
that are offered pursuant to such preferred
lender arrangements; and
(ii) make clear that such covered
institutions and institution-affiliated
organizations may provide the required
information on a form designed by the
institution or organization instead of the
model disclosure form described in subparagraph
(B);
(B) develop a model disclosure form that may
be used by covered institutions, institution-
affiliated organizations, and preferred lenders
that includes all of the information required
under subparagraph (A)(i) in a format that--
(i) is easily usable by students,
families, institutions, institution-
affiliated organizations, lenders, loan
servicers, and guaranty agencies; and
(ii) is similar in format to the form
developed by the Board of Governors of
the Federal Reserve System under
paragraphs (1) and (5)(A) of section
128(e), in order to permit students and
the families of students to easily
compare private education loans and
education loans described in section
151(3)(A); and
[(C) update such model disclosure form
periodically, as necessary.]
(C) update such model disclosure form not
later than 180 after the date of enactment of
the PROSPER Act, and periodically thereafter,
as necessary.
(b) Duties of Lenders.--Each lender that has a preferred
lender arrangement with a covered institution, or an
institution-affiliated organization of such covered
institution, with respect to education loans described in
section 151(3)(A) shall annually, by a date determined by the
Secretary, provide to such covered institution or such
institution-affiliated organization, and to the Secretary, the
information the Secretary requires pursuant to subsection
(a)(2)(A)(i) for each type of education loan described in
section 151(3)(A) that the lender plans to offer pursuant to
such preferred lender arrangement to students attending such
covered institution, or to the families of such students, for
the next award year.
[(c) Duties of Covered Institutions and Institution-
Affiliated Organizations.--
[(1) Providing information to students and
families.--
[(A) In general.--Each covered institution,
and each institution-affiliated organization of
such covered institution, that has a preferred
lender arrangement shall provide the following
information to students attending such
institution, or the families of such students,
as applicable:
[(i) The information the Secretary
requires pursuant to subsection
(a)(2)(A)(i), for each type of
education loan described in section
151(3)(A) offered pursuant to a
preferred lender arrangement to
students of such institution or the
families of such students.
[(ii)(I) In the case of a covered
institution, the information that the
Board of Governors of the Federal
Reserve System requires to be disclosed
under section 128(e)(11) of the Truth
in Lending Act (15 U.S.C. 1638(e)(11))
to the covered institution, for each
type of private education loan offered
pursuant to such preferred lender
arrangement to students of such
institution or the families of such
students.
[(II) In the case of an institution-
affiliated organization, the
information the Board of Governors of
the Federal Reserve System requires to
be disclosed under section 128(e)(1) of
the Truth in Lending Act (15 U.S.C.
1638(e)(1)), for each type of private
education loan offered pursuant to such
preferred lender arrangement to
students of the institution with which
such organization is affiliated or the
families of such students.
[(B) Timely provision of information.--The
information described in subparagraph (A) shall
be provided in a manner that allows for the
students or the families to take such
information into account before selecting a
lender or applying for an education loan.
[(2) Annual report.--Each covered institution, and
each institution-affiliated organization of such
covered institution, that has a preferred lender
arrangement, shall--
[(A) prepare and submit to the Secretary an
annual report, by a date determined by the
Secretary, that includes, for each lender that
has a preferred lender arrangement with such
covered institution or organization--
[(i) the information described in
clauses (i) and (ii) of paragraph
(1)(A); and
[(ii) a detailed explanation of why
such covered institution or
institution-affiliated organization
entered into a preferred lender
arrangement with the lender, including
why the terms, conditions, and
provisions of each type of education
loan provided pursuant to the preferred
lender arrangement are beneficial for
students attending such institution, or
the families of such students, as
applicable; and
[(B) ensure that the report required under
subparagraph (A) is made available to the
public and provided to students attending or
planning to attend such covered institution and
the families of such students.
[(3) Code of conduct.--
[(A) In general.--Each covered institution,
and each institution-affiliated organization of
such covered institution, that has a preferred
lender arrangement, shall comply with the code
of conduct requirements of subparagraphs (A)
through (C) of section 487(a)(25).
[(B) Applicable code of conduct.--For
purposes of subparagraph (A), an institution-
affiliated organization of a covered
institution shall--
[(i) comply with the code of conduct
developed and published by such covered
institution under subparagraphs (A) and
(B) of section 487(a)(25);
[(ii) if such institution-affiliated
organization has a website, publish
such code of conduct prominently on the
website; and
[(iii) administer and enforce such
code of conduct by, at a minimum,
requiring that all of such
organization's agents with
responsibilities with respect to
education loans be annually informed of
the provisions of such code of
conduct.]
(c) Duties of Covered Institutions and Institution-affiliated
Organizations.--
(1) Code of conduct.--Each covered institution, and
each institution-affiliated organization of such
covered institution, that has a preferred lender
arrangement, shall comply with the code of conduct
requirements of subparagraphs (A) through (C) of
section 487(a)(23).
(2) Applicable code of conduct.--For purposes of
subparagraph (A), an institution-affiliated
organization of a covered institution shall--
(A) comply with the code of conduct developed
and published by such covered institution under
subparagraphs (A) and (B) of section
487(a)(23);
(B) if such institution-affiliated
organization has a website, publish such code
of conduct prominently on the website; and
(C) administer and enforce such code of
conduct by, at a minimum, requiring that all of
such organization's agents with
responsibilities with respect to education
loans be annually informed of the provisions of
such code of conduct.
SEC. 154. LOAN INFORMATION TO BE DISCLOSED AND MODEL DISCLOSURE FORM
FOR INSTITUTIONS PARTICIPATING IN THE WILLIAM D.
FORD FEDERAL DIRECT LOAN PROGRAM OR THE FEDERAL
ONE LOAN PROGRAM.
(a) Provision of Disclosures to Institutions by the
Secretary.--Not later than 180 days after [the development] the
first update of the model disclosure form under [section
153(a)(2)(B)] section 153(a)(2)(C), the Secretary shall provide
each institution of higher education participating in the
[William D. Ford Direct Loan Program] William D. Ford Direct
Loan Program or the Federal ONE Loan Program under [part D]
part D or E of title IV with a completed model disclosure form
including the same information for [Federal Direct Stafford
Loans, Federal Direct Unsubsidized Stafford Loans, and Federal
Direct PLUS] undergraduate, graduate, and parent loans made to,
or on behalf of, students attending each such institution as is
required on such form for loans described in section 151(3)(A).
(b) Duties of Institutions.--
(1) In general.--Each institution of higher education
participating in the [William D. Ford Direct Loan
Program] William D. Ford Direct Loan Program or the
Federal ONE Loan Program under [part D] part D or E of
title IV shall--
(A) make the information the Secretary
provides to the institution under subsection
(a) available to students attending or planning
to attend the institution, or the families of
such students, as applicable; and
(B) if the institution provides information
regarding a private education loan to a
prospective borrower, concurrently provide such
borrower with the information the Secretary
provides to the institution under subsection
(a).
(2) Choice of forms.--In providing the information
required under paragraph (1), an institution of higher
education may use a comparable form designed by the
institution instead of the model disclosure form
developed under section 153(a)(2)(B).
* * * * * * *
PART F--ADDRESSING SEXUAL ASSAULT
SEC. 161. APPLICATION.
The requirements of this part shall apply to any institution
of higher education receiving Federal financial assistance
under this Act, including financial assistance provided to
students under title IV, other than--
(1) an institution outside the United States; or
(2) an institution that provides instruction
primarily through online courses.
SEC. 162. CAMPUS CLIMATE SURVEYS.
(a) Surveys to Measure Campus Attitudes and Climate Regarding
Sexual Assault and Misconduct on Campus.--Each institution of
higher education that is subject to this part shall conduct
surveys of its students to measure campus attitudes towards
sexual assault and the general climate of the campus regarding
the institution's treatment of sexual assault on campus, and
shall use the results of the survey to improve the
institution's ability to prevent and respond appropriately to
incidents of sexual assault.
(b) Contents.--The institution's survey under this section
shall consist of such questions as the institution considers
appropriate, which may (at the option of the institution)
include any of the following:
(1) Questions on the incidence and prevalence of
sexual assault experienced by students.
(2) Questions on whether students who experience
sexual assault report such incidents to campus
officials or law enforcement agencies.
(3) Questions on whether the alleged perpetrators are
students of the institution.
(4) Questions to test the students' knowledge and
understanding of institutional policies regarding
sexual assault and available campus support services
for victims of sexual assault.
(5) Questions to test the students' knowledge,
understanding, and retention of campus sexual assault
prevention and awareness programming.
(6) Questions related to dating violence, domestic
violence, and stalking.
(c) Other Issues Relating to the Administration of Surveys.--
(1) Mandatory confidentiality of responses.--The
institution shall ensure that all responses to surveys
under this section are kept confidential and do not
require the respondents to provide personally
identifiable information.
(2) Encouraging use of best practices and appropriate
language.--The institution is encouraged to administer
the surveys under this section in accordance with best
practices derived from peer-reviewed research, and to
use language that is sensitive to potential respondents
who may have been victims of sexual assault.
(3) Encouraging responses.--The institution shall
make a good faith effort to encourage students to
respond to the surveys.
(d) Role of Secretary.--
(1) Development of sample surveys.--The Secretary, in
consultation with relevant stakeholders, shall develop
sample surveys that an institution may elect to use
under this section, and shall post such surveys on a
publicly accessible website of the Department of
Education. The Secretary shall develop sample surveys
that are suitable for the various populations who will
participate in the surveys.
(2) Limit on other activities.--In carrying out this
section, the Secretary--
(A) may not regulate or otherwise impose
conditions on the contents of an institution's
surveys under this section, except as may be
necessary to ensure that the institution meets
the confidentiality requirements of subsection
(c)(1); and
(B) may not use the results of the surveys to
make comparisons between institutions of higher
education.
(e) Frequency.--An institution of higher education that is
subject to this part shall conduct a survey under this section
not less frequently than once every 3 academic years.
SEC. 163. SURVIVORS' COUNSELORS.
(a) Requiring Institutions to Make Counselor Available.--
(1) In general.--Each institution of higher education
that is subject to this part shall retain the services
of qualified sexual assault survivors' counselors to
counsel and support students who are victims of sexual
assault.
(2) Use of contractors permitted.--At the option of
the institution, the institution may retain the
services of counselors who are employees of the
institution or may enter into agreements with other
institutions of higher education, victim advocacy
organizations, or other appropriate sources to provide
counselors for purposes of this section.
(3) Number.--The institution shall retain such number
of counselors under this section as the institution
considers appropriate based on a reasonable
determination of the anticipated demand for such
counselors' services, so long as the institution
retains the services of at least one such counselor at
all times.
(b) Qualifications.--A counselor is qualified for purposes of
this section if the counselor has completed education
specifically designed to enable the counselor to provide
support to victims of sexual assault, and is familiar with
relevant laws on sexual assault as well as the institution's
own policies regarding sexual assault.
(c) Informing Victims of Available Options and Services.--In
providing services pursuant to this section, a counselor
shall--
(1) inform the victim of sexual assault of options
available to victims, including the procedures the
victim may follow to report the assault to the
institution or to a law enforcement agency; and
(2) inform the victim of interim measures that may be
taken pending the resolution of institutional
disciplinary proceedings or the conclusion of criminal
justice proceedings.
(d) Confidentiality.--
(1) Maintaining confidentiality of information.--In
providing services pursuant to this section, a
counselor shall--
(A) maintain confidentiality with respect to
any information provided by a victim of sexual
assault to the greatest extent permitted under
applicable law; and
(B) notify the victim of any circumstances
under which the counselor is required to report
information to others (including a law
enforcement agency) notwithstanding the general
requirement to maintain confidentiality under
subparagraph (A).
(2) Maintaining privacy of records.--A counselor
providing services pursuant to this section shall be
considered a recognized professional for purposes of
section 444(a)(4)(B)(iv) of the General Education
Provisions Act (commonly known as the ``Family
Educational Rights and Privacy Act of 1974'') (20
U.S.C. 1232g(a)(4)(B)(iv)).
(e) Limitations.--
(1) No reporting of incidents under clery act or
other authority.--A counselor providing services
pursuant to this section is not required to report
incidents of sexual assault that are reported to the
counselor for inclusion in any report on campus crime
statistics, and shall not be considered part of a
campus police or security department for purposes of
section 485(f).
(2) No coverage of counselors as responsible
employees under title ix.--A counselor providing
services pursuant to this section on behalf of an
institution of higher education shall not be considered
a responsible employee of the institution for purposes
of title IX of the Education Amendments of 1972 (20
U.S.C. 1681 et seq.) or the regulations promulgated
pursuant to such title.
(f) Notifications to Students.--Each institution of higher
education that is subject to this part shall make a good faith
effort to notify its students of the availability of the
services of counselors pursuant to this section through the
statement of policy described in section 485(f)(8)(B)(vi) and
any other methods as the institution considers appropriate,
including disseminating information through the institution's
website, posting notices throughout the campus, and including
information as part of programs to educate students on sexual
assault prevention and awareness.
SEC. 164. FORM TO DISTRIBUTE TO VICTIMS OF SEXUAL ASSAULT.
(a) Requirement to Develop and Distribute Form.--Each
institution of higher education that is subject to this part
shall develop a one-page form containing information to provide
guidance and assistance to students who may be victims of
sexual assault, and shall make the form widely available to
students.
(b) Contents of Form.--The form developed under this section
shall contain such information as the institution considers
appropriate, and may include the following:
(1) Information about the services of counselors
which are available pursuant to section 163, including
a statement that the counselor will provide the maximum
degree of confidentiality permitted under law, and a
brief description of the circumstances under which the
counselor may be required to report information
notwithstanding the victim's desire to keep the
information confidential.
(2) Information about other appropriate campus
resources and resources in the local community,
including contact information.
(3) Information about where to obtain medical
treatment, and information about transportation
services to such medical treatment facilities, if
available.
(4) Information about the importance of preserving
evidence after a sexual assault.
(5) Information about how to file a report with local
law enforcement agencies.
(6) Information about the victim's right to request
accommodations, and examples of accommodations that may
be provided.
(7) Information about the victim's right to request
that the institution begin an investigation of an
allegation of sexual assault and initiate an
institutional disciplinary proceeding if the alleged
perpetrator of the assault is another student or a
member of the faculty or staff of the institution.
(8) A statement that an institutional disciplinary
proceeding is not a substitute for a criminal justice
proceeding.
(9) Information about how to report a sexual assault
to the institution, including the designated official
or office responsible for receiving these reports.
(c) Development of Model Forms.--The Secretary, in
consultation with relevant stakeholders, shall develop model
forms that an institution may use to meet the requirements of
this section, and shall include in such model forms language
which may accommodate a variety of State and local laws and
institutional policies. Nothing in this subsection may be
construed to require an institution to use any of the model
forms developed under this subsection.
SEC. 165. MEMORANDA OF UNDERSTANDING WITH LOCAL LAW ENFORCEMENT
AGENCIES.
(a) Findings; Purpose.--
(1) Findings.--Because sexual assault is a serious
crime, coordination and cooperation between
institutions of higher education and law enforcement
agencies are critical in ensuring that reports of
sexual assaults on campus are handled in an appropriate
and effective manner. A memorandum of understanding
entered into between an institution and the law
enforcement agency with primary jurisdiction for
responding to reports of sexual assault on the
institution's campus is a useful tool to promote this
coordination and cooperation.
(2) Purpose.--It is the purpose of this section to
encourage each institution of higher education that is
subject to this part to enter into a memorandum of
understanding with the law enforcement agency with
primary jurisdiction for responding to reports of
sexual assault on the institution's campus so that
reports of sexual assault on the institution's campus
may be handled in an appropriate and effective manner.
(b) Contents of Memorandum.--An institution of higher
education and a law enforcement agency entering into a
memorandum of understanding described in this section are
encouraged to include in the memorandum provisions addressing
the following:
(1) An outline of the protocols and a delineation of
responsibilities for responding to a report of sexual
assault occurring on campus.
(2) A clarification of each party's responsibilities
under existing Federal, State, and local law or
policies.
(3) The need for the law enforcement agency to know
about institutional policies and resources so that the
agency can direct student-victims of sexual assault to
such resources.
(4) The need for the institution to know about
resources available within the criminal justice system
to assist survivors, including the presence of special
prosecutor or police units specifically designated to
handle sexual assault cases.
(5) If the institution has a campus police or
security department with law enforcement authority, the
need to clarify the relationship and delineate the
responsibilities between such department and the law
enforcement agency with respect to handling incidents
of sexual assaults occurring on campus.
(c) Role of Secretary.--The Secretary, in consultation with
the Attorney General, shall develop best practices for
memoranda of understanding described in this section, and shall
disseminate such best practices on a publicly accessible
website of the Department of Education.
SEC. 166. DEFINITIONS.
In this part:
(1) The term ``sexual assault'' has the meaning given
such term in section 485(f)(6)(A)(v).
(2) The terms ``dating violence'', ``domestic
violence'', and ``stalking'', have the meaning given
such terms in section 485(f)(6)(A)(i).
* * * * * * *
[TITLE II--TEACHER QUALITY ENHANCEMENT
[SEC. 200. DEFINITIONS.
[In this title:
[(1) Arts and sciences.--The term ``arts and
sciences'' means--
[(A) when referring to an organizational unit
of an institution of higher education, any
academic unit that offers one or more academic
majors in disciplines or content areas
corresponding to the academic subject matter
areas in which teachers provide instruction;
and
[(B) when referring to a specific academic
subject area, the disciplines or content areas
in which academic majors are offered by the
arts and sciences organizational unit.
[(2) Children from low-income families.--The term
``children from low-income families'' means children
described in section 1124(c)(1)(A) of the Elementary
and Secondary Education Act of 1965.
[(3) Core academic subjects.--The term ``core
academic subjects''means English, reading or language
arts, mathematics,science, foreign languages, civics
and government,economics, arts, history, and geography.
[(4) Early childhood educator.--The term ``early
childhood educator'' means an individual with primary
responsibility for the education of children in an
early childhood education program.
[(5) Educational service agency.--The term
``educational service agency'' has the meaning given
the term in section 8101 of the Elementary and
SecondaryEducation Act of 1965.
[(6) Eligible partnership.--Except as otherwise
provided in section 251, the term ``eligible
partnership'' means an entity that--
[(A) shall include--
[(i) a high-need local educational
agency;
[(ii)(I) a high-need school or a
consortium of high-need schools served
by the high-need local educational
agency; or
[(II) as applicable, a high-need
early childhood education program;
[(iii) a partner institution;
[(iv) a school, department, or
program of education within such
partner institution, which may include
an existing teacher professional
development program with proven
outcomes within a four-year institution
of higher education that provides
intensive and sustained collaboration
between faculty and local educational
agencies consistent with the
requirements of this title; and
[(v) a school or department of arts
and sciences within such partner
institution; and
[(B) may include any of the following:
[(i) The Governor of the State.
[(ii) The State educational agency.
[(iii) The State board of education.
[(iv) The State agency for higher
education.
[(v) A business.
[(vi) A public or private nonprofit
educational organization.
[(vii) An educational service agency.
[(viii) A teacher organization.
[(ix) A high-performing local
educational agency, or a consortium of
such local educational agencies, that
can serve as a resource to the
partnership.
[(x) A charter school (as defined in
section 4310 of the Elementary and
SecondaryEducation Act of 1965).
[(xi) A school or department within
the partner institution that focuses on
psychology and human development.
[(xii) A school or department within
the partner institution with comparable
expertise in the disciplines of
teaching, learning, and child and
adolescent development.
[(xiii) An entity operating a program
that provides alternative routes to
State certification of teachers.
[(7) Essential components of reading instruction.--
The term ``essential components of reading
instruction'' has the meaning given the term in section
1208 of the Elementary and Secondary Education Act of
1965 as such section was in effect on the day before
the date of enactment of the Every Student Succeeds
Act.
[(8) Exemplary teacher.--The term ``exemplary
teacher'' has the meaning given the term in section
9101 of the Elementary and Secondary Education Act of
1965 as such section was in effect on the day before
the date of enactment of the Every Student Succeeds
Act.
[(9) High-need early childhood education program.--
The term ``high-need early childhood education
program'' means an early childhood education program
serving children from low-income families that is
located within the geographic area served by a high-
need local educational agency.
[(10) High-need local educational agency.--The term
``high-need local educational agency'' means a local
educational agency--
[(A)(i) for which not less than 20 percent of
the children served by the agency are children
from low-income families;
[(ii) that serves not fewer than 10,000
children from low-income families;
[(iii) that meets the eligibility
requirements for funding under the Small, Rural
School Achievement Program under section
5211(b) of the Elementary andSecondary
Education Act of 1965; or
[(iv) that meets the eligibility requirements
for funding under the Rural and Low-Income
School Program under section 5221(b) of the
Elementary andSecondary Education Act of 1965;
and
[(B)(i) for which there is a high percentage
of teachers not teaching in the academic
subject areas or grade levels in which the
teachers were trained to teach; or
[(ii) for which there is a high teacher
turnover rate or a high percentage of teachers
with emergency, provisional, or temporary
certification or licensure.
[(11) High-need school.--
[(A) In general.--The term ``high-need
school'' means a school that, based on the most
recent data available, meets one or both of the
following:
[(i) The school is in the highest
quartile of schools in a ranking of all
schools served by a local educational
agency, ranked in descending order by
percentage of students from low-income
families enrolled in such schools, as
determined by the local educational
agency based on one of the following
measures of poverty:
[(I) The percentage of
students aged 5 through 17 in
poverty counted in the most
recent census data approved by
the Secretary.
[(II) The percentage of
students eligible for a free or
reduced price school lunch
under the Richard B. Russell
National School Lunch Act.
[(III) The percentage of
students in families receiving
assistance under the State
program funded under part A of
title IV of the Social Security
Act.
[(IV) The percentage of
students eligible to receive
medical assistance under the
Medicaid program.
[(V) A composite of two or
more of the measures described
in subclauses (I) through (IV).
[(ii) In the case of--
[(I) an elementary school,
the school serves students not
less than 60 percent of whom
are eligible for a free or
reduced price school lunch
under the Richard B. Russell
National School Lunch Act; or
[(II) any other school that
is not an elementary school,
the other school serves
students not less than 45
percent of whom are eligible
for a free or reduced price
school lunch under the Richard
B. Russell National School
Lunch Act.
[(B) Special rule.--
[(i) Designation by the secretary.--
The Secretary may, upon approval of an
application submitted by an eligible
partnership seeking a grant under this
title, designate a school that does not
qualify as a high-need school under
subparagraph (A) as a high-need school
for the purpose of this title. The
Secretary shall base the approval of an
application for designation of a school
under this clause on a consideration of
the information required under clause
(ii), and may also take into account
other information submitted by the
eligible partnership.
[(ii) Application requirements.--An
application for designation of a school
under clause (i) shall include--
[(I) the number and
percentage of students
attending such school who are--
[(aa) aged 5 through
17 in poverty counted
in the most recent
census data approved by
the Secretary;
[(bb) eligible for a
free or reduced price
school lunch under the
Richard B. Russell
National School Lunch
Act;
[(cc) in families
receiving assistance
under the State program
funded under part A of
title IV of the Social
Security Act; or
[(dd) eligible to
receive medical
assistance under the
Medicaid program;
[(II) information about the
student academic achievement of
students at such school; and
[(III) for a secondary
school, the graduation rate for
such school.
[(12) Highly competent.--The term ``highly
competent'', when used with respect to an early
childhood educator, means an educator--
[(A) with specialized education and training
in development and education of young children
from birth until entry into kindergarten;
[(B) with--
[(i) a baccalaureate degree in an
academic major in the arts and
sciences; or
[(ii) an associate's degree in a
related educational area; and
[(C) who has demonstrated a high level of
knowledge and use of content and pedagogy in
the relevant areas associated with quality
early childhood education.
[(14) Induction program.--The term ``induction
program'' means a formalized program for new teachers
during not less than the teachers' first two years of
teaching that is designed to provide support for, and
improve the professional performance and advance the
retention in the teaching field of, beginning teachers.
Such program shall promote effective teaching skills
and shall include the following components:
[(A) High-quality teacher mentoring.
[(B) Periodic, structured time for
collaboration with teachers in the same
department or field, including mentor teachers,
as well as time for information-sharing among
teachers, principals, administrators, other
appropriate instructional staff, and
participating faculty in the partner
institution.
[(C) The application of empirically-based
practice and scientifically valid research on
instructional practices.
[(D) Opportunities for new teachers to draw
directly on the expertise of teacher mentors,
faculty, and researchers to support the
integration of empirically-based practice and
scientifically valid research with practice.
[(E) The development of skills in
instructional and behavioral interventions
derived from empirically-based practice and,
where applicable, scientifically valid
research.
[(F) Faculty who--
[(i) model the integration hof
research and practice in the classroom;
and
[(ii) assist new teachers with the
effective use and integration of
technology in the classroom.
[(G) Interdisciplinary collaboration among
exemplary teachers, faculty, researchers, and
other staff who prepare new teachers with
respect to the learning process and the
assessment of learning.
[(H) Assistance with the understanding of
data, particularly student achievement data,
and the applicability of such data in classroom
instruction.
[(I) Regular and structured observation and
evaluation of new teachers by multiple
evaluators, using valid and reliable measures
of teaching skills.
[(15) Limited english proficient.--The term ``limited
English proficient''has the meaning given the term
`English learner'in section 8101 of the Elementary and
Secondary EducationAct of 1965.
[(16) Parent.--The term ``parent'' has the meaning
given the term in section 8101 of the Elementary and
SecondaryEducation Act of 1965.
[(17) Partner institution.--The term ``partner
institution'' means an institution of higher education,
which may include a two-year institution of higher
education offering a dual program with a four-year
institution of higher education, participating in an
eligible partnership that has a teacher preparation
program--
[(A) whose graduates exhibit strong
performance on State-determined qualifying
assessments for new teachers through--
[(i) demonstrating that 80 percent or
more of the graduates of the program
who intend to enter the field of
teaching have passed all of the
applicable State qualification
assessments for new teachers, which
shall include an assessment of each
prospective teacher's subject matter
knowledge in the content area in which
the teacher intends to teach; or
[(ii) being ranked among the highest-
performing teacher preparation programs
in the State as determined by the
State--
[(I) using criteria
consistent with the
requirements for the State
report card under section
205(b) before the first
publication of such report
card; and
[(II) using the State report
card on teacher preparation
required under section 205(b),
after the first publication of
such report card and for every
year thereafter; and
[(B) that requires--
[(i) each student in the program to
meet high academic standards or
demonstrate a record of success, as
determined by the institution
(including prior to entering and being
accepted into a program), and
participate in intensive clinical
experience;
[(ii) each student in the program
preparing to become a teacher who meets
the applicableState certification and
licensure requirements, includingany
requirements for certification obtained
through alternativeroutes to
certification, or, with regard to
specialeducation teachers, the
qualifications described in
section612(a)(14)(C) of the Individuals
with Disabilities EducationAct; and
[(iii) each student in the program
preparing to become an early childhood
educator to meet degree requirements,
as established by the State, and become
highly competent.
[(18) Principles of scientific research.--The term
``principles of scientific research'' means principles
of research that--
[(A) apply rigorous, systematic, and
objective methodology to obtain reliable and
valid knowledge relevant to education
activities and programs;
[(B) present findings and make claims that
are appropriate to, and supported by, the
methods that have been employed; and
[(C) include, appropriate to the research
being conducted--
[(i) use of systematic, empirical
methods that draw on observation or
experiment;
[(ii) use of data analyses that are
adequate to support the general
findings;
[(iii) reliance on measurements or
observational methods that provide
reliable and generalizable findings;
[(iv) strong claims of causal
relationships, only with research
designs that eliminate plausible
competing explanations for observed
results, such as, but not limited to,
random-assignment experiments;
[(v) presentation of studies and
methods in sufficient detail and
clarity to allow for replication or, at
a minimum, to offer the opportunity to
build systematically on the findings of
the research;
[(vi) acceptance by a peer-reviewed
journal or critique by a panel of
independent experts through a
comparably rigorous, objective, and
scientific review; and
[(vii) consistency of findings across
multiple studies or sites to support
the generality of results and
conclusions.
[(19) Professional development.--The term
``professional development'' has the meaning given the
term in section 8101 of the Elementary and Secondary
Education Act of 1965.
[(20) Scientifically valid research.--The term
``scientifically valid research'' includes applied
research, basic research, and field-initiated research
in which the rationale, design, and interpretation are
soundly developed in accordance with principles of
scientific research.
[(21) Teacher mentoring.--The term ``teacher
mentoring'' means the mentoring of new or prospective
teachers through a program that--
[(A) includes clear criteria for the
selection of teacher mentors who will provide
role model relationships for mentees, which
criteria shall be developed by the eligible
partnership and based on measures of teacher
effectiveness;
[(B) provides high-quality training for such
mentors, including instructional strategies for
literacy instruction and classroom management
(including approaches that improve the
schoolwide climate for learning, which may
include positive behavioral interventions and
supports);
[(C) provides regular and ongoing
opportunities for mentors and mentees to
observe each other's teaching methods in
classroom settings during the day in a high-
need school in the high-need local educational
agency in the eligible partnership;
[(D) provides paid release time for mentors,
as applicable;
[(E) provides mentoring to each mentee by a
colleague who teaches in the same field, grade,
or subject as the mentee;
[(F) promotes empirically-based practice of,
and scientifically valid research on, where
applicable--
[(i) teaching and learning;
[(ii) assessment of student learning;
[(iii) the development of teaching
skills through the use of instructional
and behavioral interventions; and
[(iv) the improvement of the mentees'
capacity to measurably advance student
learning; and
[(G) includes--
[(i) common planning time or
regularly scheduled collaboration for
the mentor and mentee; and
[(ii) joint professional development
opportunities.
[(22) Teaching residency program.--The term
``teaching residency program'' means a school-based
teacher preparation program in which a prospective
teacher--
[(A) for one academic year, teaches alongside
a mentor teacher, who is the teacher of record;
[(B) receives concurrent instruction during
the year described in subparagraph (A) from the
partner institution, which courses may be
taught by local educational agency personnel or
residency program faculty, in the teaching of
the content area in which the teacher will
become certified or licensed;
[(C) acquires effective teaching skills; and
[(D) prior to completion of the program--
[(i) attains full State certification
or licensure and, with respect to
special educationteachers, meets the
qualifications described in
section612(a)(14)(C) of the Individuals
with Disabilities EducationAct; and
[(ii) acquires a master's degree not
later than 18 months after beginning
the program.
[(23) Teaching skills.--The term ``teaching skills''
means skills that enable a teacher to--
[(A) increase student learning, achievement,
and the ability to apply knowledge;
[(B) effectively convey and explain academic
subject matter;
[(C) effectively teach higher-order
analytical, evaluation, problem-solving, and
communication skills;
[(D) employ strategies grounded in the
disciplines of teaching and learning that--
[(i) are based on empirically-based
practice and scientifically valid
research, where applicable, related to
teaching and learning;
[(ii) are specific to academic
subject matter; and
[(iii) focus on the identification of
students' specific learning needs,
particularly students with
disabilities, students who are limited
English proficient, students who are
gifted and talented, and students with
low literacy levels, and the tailoring
of academic instruction to such needs;
[(E) conduct an ongoing assessment of student
learning, which may include the use of
formative assessments, performance-based
assessments, project-based assessments, or
portfolio assessments, that measures higher-
order thinking skills (including application,
analysis, synthesis, and evaluation);
[(F) effectively manage a classroom,
including the ability to implement positive
behavioral interventions and support
strategies;
[(G) communicate and work with parents, and
involve parents in their children's education;
and
[(H) use, in the case of an early childhood
educator, age-appropriate and developmentally
appropriate strategies and practices for
children in early childhood education programs.
[PART A--TEACHER QUALITY PARTNERSHIP GRANTS
[SEC. 201. PURPOSES.
[The purposes of this part are to--
[(1) improve student achievement;
[(2) improve the quality of prospective and new
teachers by improving the preparation of prospective
teachers and enhancing professional development
activities for new teachers;
[(3) hold teacher preparation programs at
institutions of higher education accountable for
preparing teachers who meet the applicable State
certificationand licensure requirements, including any
requirementsfor certification obtained through
alternative routes to certification,or, with regard to
special education teachers, the qualificationsdescribed
in section 612(a)(14)(C) of the Individualswith
Disabilities Education Act; and
[(4) recruit highly qualified individuals, including
minorities and individuals from other occupations, into
the teaching force.
[SEC. 202. PARTNERSHIP GRANTS.
[(a) Program Authorized.--From amounts made available under
section 209, the Secretary is authorized to award grants, on a
competitive basis, to eligible partnerships, to enable the
eligible partnerships to carry out the activities described in
subsection (c).
[(b) Application.--Each eligible partnership desiring a grant
under this section shall submit an application to the Secretary
at such time, in such manner, and accompanied by such
information as the Secretary may require. Each such application
shall contain--
[(1) a needs assessment of the partners in the
eligible partnership with respect to the preparation,
ongoing training, professional development, and
retention of general education and special education
teachers, principals, and, as applicable, early
childhood educators;
[(2) a description of the extent to which the program
to be carried out with grant funds, as described in
subsection (c), will prepare prospective and new
teachers with strong teaching skills;
[(3) a description of how such program will prepare
prospective and new teachers to understand and use
research and data to modify and improve classroom
instruction;
[(4) a description of--
[(A) how the eligible partnership will
coordinate strategies and activities assisted
under the grant with other teacher preparation
or professional development programs, including
programs funded under the Elementary and
Secondary Education Act of 1965 and the
Individuals with Disabilities Education Act,
and through the National Science Foundation;
and
[(B) how the activities of the partnership
will be consistent with State, local, and other
education reform activities that promote
teacher quality and student academic
achievement;
[(5) an assessment that describes the resources
available to the eligible partnership, including--
[(A) the integration of funds from other
related sources;
[(B) the intended use of the grant funds; and
[(C) the commitment of the resources of the
partnership to the activities assisted under
this section, including financial support,
faculty participation, and time commitments,
and to the continuation of the activities when
the grant ends;
[(6) a description of--
[(A) how the eligible partnership will meet
the purposes of this part;
[(B) how the partnership will carry out the
activities required under subsection (d) or
(e), based on the needs identified in paragraph
(1), with the goal of improving student
academic achievement;
[(C) if the partnership chooses to use funds
under this section for a project or activities
under subsection (f) or (g), how the
partnership will carry out such project or
required activities based on the needs
identified in paragraph (1), with the goal of
improving student academic achievement;
[(D) the partnership's evaluation plan under
section 204(a);
[(E) how the partnership will align the
teacher preparation program under subsection
(c) with the--
[(i) State early learning standards
for early childhood education programs,
as appropriate, and with the relevant
domains of early childhood development;
and
[(ii) challenging State academic
standards under section 1111(b)(1) of
the Elementary and Secondary Education
Act of 1965, established by the State
in which the partnership is located;
[(F) how the partnership will prepare general
education teachers to teach students with
disabilities, including training related to
participation as a member of individualized
education program teams, as defined in section
614(d)(1)(B) of the Individuals with
Disabilities Education Act;
[(G) how the partnership will prepare general
education and special education teachers to
teach students who are limited English
proficient;
[(H) how faculty at the partner institution
will work, during the term of the grant, with
teachers who meet the applicableState
certification and licensure requirements,
includingany requirements for certification
obtained through alternativeroutes to
certification, or, with regard to
specialeducation teachers, the qualifications
described in section612(a)(14)(C) of the
Individuals with Disabilities EducationAct, in
the classrooms of high-need schools served by
the high-need local educational agency in the
partnership to--
[(i) provide high-quality
professional development activities to
strengthen the content knowledge and
teaching skills of elementary school
and secondary school teachers; and
[(ii) train other classroom teachers
to implement literacy programs that
incorporate the essential components of
reading instruction;
[(I) how the partnership will design,
implement, or enhance a year-long and rigorous
teaching preservice clinical program component;
[(J) how the partnership will support in-
service professional development strategies and
activities; and
[(K) how the partnership will collect,
analyze, and use data on the retention of all
teachers and early childhood educators in
schools and early childhood education programs
located in the geographic area served by the
partnership to evaluate the effectiveness of
the partnership's teacher and educator support
system; and
[(7) with respect to the induction program required
as part of the activities carried out under this
section--
[(A) a demonstration that the schools and
departments within the institution of higher
education that are part of the induction
program will effectively prepare teachers,
including providing content expertise and
expertise in teaching, as appropriate;
[(B) a demonstration of the eligible
partnership's capability and commitment to, and
the accessibility to and involvement of faculty
in, the use of empirically-based practice and
scientifically valid research on teaching and
learning;
[(C) a description of how the teacher
preparation program will design and implement
an induction program to support, through not
less than the first two years of teaching, all
new teachers who are prepared by the teacher
preparation program in the partnership and who
teach in the high-need local educational agency
in the partnership, and, to the extent
practicable, all new teachers who teach in such
high-need local educational agency, in the
further development of the new teachers'
teaching skills, including the use of mentors
who are trained and compensated by such program
for the mentors' work with new teachers; and
[(D) a description of how faculty involved in
the induction program will be able to
substantially participate in an early childhood
education program or an elementary school or
secondary school classroom setting, as
applicable, including release time and
receiving workload credit for such
participation.
[(c) Use of Grant Funds.--An eligible partnership that
receives a grant under this section--
[(1) shall use grant funds to carry out a program for
the preparation of teachers under subsection (d), a
teaching residency program under subsection (e), or a
combination of such programs; and
[(2) may use grant funds to carry out a leadership
development program under subsection (f).
[(d) Partnership Grants for the Preparation of Teachers.--An
eligible partnership that receives a grant to carry out a
program for the preparation of teachers shall carry out an
effective pre-baccalaureate teacher preparation program or a
5th year initial licensing program that includes all of the
following:
[(1) Reforms.--
[(A) In general.--Implementing reforms,
described in subparagraph (B), within each
teacher preparation program and, as applicable,
each preparation program for early childhood
education programs, of the eligible partnership
that is assisted under this section, to hold
each program accountable for--
[(i) preparing--
[(I) new or prospective
teachers to meet the applicable
Statecertification and
licensure requirements,
includingany requirements for
certification obtainedthrough
alternative routes to
certification, or, withregard
to special education teachers,
the qualificationsdescribed in
section 612(a)(14)(C) of
theIndividuals with
Disabilities Education
Act(including teachers in rural
school districts,
specialeducators, and teachers
of students who are
limitedEnglish proficient);
[(II) such teachers and, as
applicable, early childhood
educators, to understand
empirically-based practice and
scientifically valid research
related to teaching and
learning and the applicability
of such practice and research,
including through the effective
use of technology,
instructional techniques, and
strategies consistent with the
principles of universal design
for learning, and through
positive behavioral
interventions and support
strategies to improve student
achievement; and
[(III) as applicable, early
childhood educators to be
highly competent; and
[(ii) promoting strong teaching
skills and, as applicable, techniques
for early childhood educators to
improve children's cognitive, social,
emotional, and physical development.
[(B) Required reforms.--The reforms described
in subparagraph (A) shall include--
[(i) implementing teacher preparation
program curriculum changes that
improve, evaluate, and assess how well
all prospective and new teachers
develop teaching skills;
[(ii) using empirically-based
practice and scientifically valid
research, where applicable, about
teaching and learning so that all
prospective teachers and, as
applicable, early childhood educators--
[(I) understand and can
implement research-based
teaching practices in classroom
instruction;
[(II) have knowledge of
student learning methods;
[(III) possess skills to
analyze student academic
achievement data and other
measures of student learning,
and use such data and measures
to improve classroom
instruction;
[(IV) possess teaching skills
and an understanding of
effective instructional
strategies across all
applicable content areas that
enable general education and
special education teachers and
early childhood educators to--
[(aa) meet the
specific learning needs
of all students,
including students with
disabilities, students
who are limited English
proficient, students
who are gifted and
talented, students with
low literacy levels
and, as applicable,
children in early
childhood education
programs; and
[(bb) differentiate
instruction for such
students;
[(V) can effectively
participate as a member of the
individualized education
program team, as defined in
section 614(d)(1)(B) of the
Individuals with Disabilities
Education Act; and
[(VI) can successfully employ
effective strategies for
reading instruction using the
essential components of reading
instruction;
[(iii) ensuring collaboration with
departments, programs, or units of a
partner institution outside of the
teacher preparation program in all
academic content areas to ensure that
prospective teachers receive training
in both teaching and relevant content
areas in order to meet the applicable
State certificationand licensure
requirements, including anyrequirements
for certification obtained
throughalternative routes to
certification, or, with regardto
special education teachers, the
qualificationsdescribed in section
612(a)(14)(C) of the Individualswith
Disabilities Education Act, which
mayinclude training in multiple
subjects to teach multiplegrade levels
as may be needed for
individualspreparing to teach in rural
communities and forindividuals
preparing to teach students
withdisabilities;
[(iv) developing and implementing an
induction program;
[(v) developing admissions goals and
priorities aligned with the hiring
objectives of the high-need local
educational agency in the eligible
partnership; and
[(vi) implementing program and
curriculum changes, as applicable, to
ensure that prospective teachers have
the requisite content knowledge,
preparation, and degree to teach
Advanced Placement or International
Baccalaureate courses successfully.
[(2) Clinical experience and interaction.--Developing
and improving a sustained and high-quality preservice
clinical education program to further develop the
teaching skills of all prospective teachers and, as
applicable, early childhood educators, involved in the
program. Such program shall do the following:
[(A) Incorporate year-long opportunities for
enrichment, including--
[(i) clinical learning in classrooms
in high-need schools served by the
high-need local educational agency in
the eligible partnership, and
identified by the eligible partnership;
and
[(ii) closely supervised interaction
between prospective teachers and
faculty, experienced teachers,
principals, other administrators, and
school leaders at early childhood
education programs (as applicable),
elementary schools, or secondary
schools, and providing support for such
interaction.
[(B) Integrate pedagogy and classroom
practice and promote effective teaching skills
in academic content areas.
[(C) Provide high-quality teacher mentoring.
[(D) Be offered over the course of a program
of teacher preparation.
[(E) Be tightly aligned with course work (and
may be developed as a fifth year of a teacher
preparation program).
[(F) Where feasible, allow prospective
teachers to learn to teach in the same local
educational agency in which the teachers will
work, learning the instructional initiatives
and curriculum of that local educational
agency.
[(G) As applicable, provide training and
experience to enhance the teaching skills of
prospective teachers to better prepare such
teachers to meet the unique needs of teaching
in rural or urban communities.
[(H) Provide support and training for
individuals participating in an activity for
prospective or new teachers described in this
paragraph or paragraph (1) or (3), and for
individuals who serve as mentors for such
teachers, based on each individual's
experience. Such support may include--
[(i) with respect to a prospective
teacher or a mentor, release time for
such individual's participation;
[(ii) with respect to a faculty
member, receiving course workload
credit and compensation for time
teaching in the eligible partnership's
activities; and
[(iii) with respect to a mentor, a
stipend, which may include bonus,
differential, incentive, or performance
pay, based on the mentor's extra skills
and responsibilities.
[(3) Induction programs for new teachers.--Creating
an induction program for new teachers or, in the case
of an early childhood education program, providing
mentoring or coaching for new early childhood
educators.
[(4) Support and training for participants in early
childhood education programs.--In the case of an
eligible partnership focusing on early childhood
educator preparation, implementing initiatives that
increase compensation for early childhood educators who
attain associate or baccalaureate degrees in early
childhood education.
[(5) Teacher recruitment.--Developing and
implementing effective mechanisms (which may include
alternative routes to State certification of teachers)
to ensure that the eligible partnership is able to
recruit qualified individuals to become teachers
whomeet the applicable State certification and
licensurerequirements, including any requirements for
certificationobtained through alternative routes to
certification,or, with regard to special education
teachers,the qualifications described in section
612(a)(14)(C) ofthe Individuals with Disabilities
Education Act through the activities of the eligible
partnership, which may include an emphasis on
recruiting into the teaching profession--
[(A) individuals from under represented
populations;
[(B) individuals to teach in rural
communities and teacher shortage areas,
including mathematics, science, special
education, and the instruction of limited
English proficient students; and
[(C) mid-career professionals from other
occupations, former military personnel, and
recent college graduates with a record of
academic distinction.
[(6) Literacy training.--Strengthening the literacy
teaching skills of prospective and, as applicable, new
elementary school and secondary school teachers--
[(A) to implement literacy programs that
incorporate the essential components of reading
instruction;
[(B) to use screening, diagnostic, formative,
and summative assessments to determine
students' literacy levels, difficulties, and
growth in order to improve classroom
instruction and improve student reading and
writing skills;
[(C) to provide individualized, intensive,
and targeted literacy instruction for students
with deficiencies in literacy skills; and
[(D) to integrate literacy skills in the
classroom across subject areas.
[(e) Partnership Grants for the Establishment of Teaching
Residency Programs.--
[(1) In general.--An eligible partnership receiving a
grant to carry out an effective teaching residency
program shall carry out a program that includes all of
the following activities:
[(A) Supporting a teaching residency program
described in paragraph (2) for high-need
subjects and areas, as determined by the needs
of the high-need local educational agency in
the partnership.
[(B) Placing graduates of the teaching
residency program in cohorts that facilitate
professional collaboration, both among
graduates of the teaching residency program and
between such graduates and mentor teachers in
the receiving school.
[(C) Ensuring that teaching residents who
participate in the teaching residency program
receive--
[(i) effective preservice preparation
as described in paragraph (2);
[(ii) teacher mentoring;
[(iii) support required through the
induction program as the teaching
residents enter the classroom as new
teachers; and
[(iv) the preparation described in
subparagraphs (A), (B), and (C) of
subsection (d)(2).
[(2) Teaching residency programs.--
[(A) Establishment and design.--A teaching
residency program under this paragraph shall be
a program based upon models of successful
teaching residencies that serves as a mechanism
to prepare teachers for success in the high-
need schools in the eligible partnership, and
shall be designed to include the following
characteristics of successful programs:
[(i) The integration of pedagogy,
classroom practice, and teacher
mentoring.
[(ii) Engagement of teaching
residents in rigorous graduate-level
course work leading to a master's
degree while undertaking a guided
teaching apprenticeship.
[(iii) Experience and learning
opportunities alongside a trained and
experienced mentor teacher--
[(I) whose teaching shall
complement the residency
program so that classroom
clinical practice is tightly
aligned with coursework;
[(II) who shall have extra
responsibilities as a teacher
leader of the teaching
residency program, as a mentor
for residents, and as a teacher
coach during the induction
program for new teachers, and
for establishing, within the
program, a learning community
in which all individuals are
expected to continually improve
their capacity to advance
student learning; and
[(III) who may be relieved
from teaching duties as a
result of such additional
responsibilities.
[(iv) The establishment of clear
criteria for the selection of mentor
teachers based on measures of teacher
effectiveness and the appropriate
subject area knowledge. Evaluation of
teacher effectiveness shall be based
on, but not limited to, observations of
the following:
[(I) Planning and
preparation, including
demonstrated knowledge of
content, pedagogy, and
assessment, including the use
of formative and diagnostic
assessments to improve student
learning.
[(II) Appropriate instruction
that engages students with
different learning styles.
[(III) Collaboration with
colleagues to improve
instruction.
[(IV) Analysis of gains in
student learning, based on
multiple measures that are
valid and reliable and that,
when feasible, may include
valid, reliable, and objective
measures of the influence of
teachers on the rate of student
academic progress.
[(V) In the case of mentor
candidates who will be
mentoring new or prospective
literacy and mathematics
coaches or instructors,
appropriate skills in the
essential components of reading
instruction, teacher training
in literacy instructional
strategies across core subject
areas, and teacher training in
mathematics instructional
strategies, as appropriate.
[(v) Grouping of teaching residents
in cohorts to facilitate professional
collaboration among such residents.
[(vi) The development of admissions
goals and priorities--
[(I) that are aligned with
the hiring objectives of the
local educational agency
partnering with the program, as
well as the instructional
initiatives and curriculum of
such agency, in exchange for a
commitment by such agency to
hire qualified graduates from
the teaching residency program;
and
[(II) which may include
consideration of applicants who
reflect the communities in
which they will teach as well
as consideration of individuals
from underrepresented
populations in the teaching
profession.
[(vii) Support for residents, once
the teaching residents are hired as
teachers of record, through an
induction program, professional
development, and networking
opportunities to support the residents
through not less than the residents'
first two years of teaching.
[(B) Selection of individuals as teacher
residents.--
[(i) Eligible individual.--In order
to be eligible to be a teacher resident
in a teaching residency program under
this paragraph, an individual shall--
[(I) be a recent graduate of
a four-year institution of
higher education or a mid-
career professional from
outside the field of education
possessing strong content
knowledge or a record of
professional accomplishment;
and
[(II) submit an application
to the teaching residency
program.
[(ii) Selection criteria.--An
eligible partnership carrying out a
teaching residency program under this
subsection shall establish criteria for
the selection of eligible individuals
to participate in the teaching
residency program based on the
following characteristics:
[(I) Strong content knowledge
or record of accomplishment in
the field or subject area to be
taught.
[(II) Strong verbal and
written communication skills,
which may be demonstrated by
performance on appropriate
tests.
[(III) Other attributes
linked to effective teaching,
which may be determined by
interviews or performance
assessments, as specified by
the eligible partnership.
[(C) Stipends or salaries; applications;
agreements; repayments.--
[(i) Stipends or salaries.--A
teaching residency program under this
subsection shall provide a one-year
living stipend or salary to teaching
residents during the teaching residency
program.
[(ii) Applications for stipends or
salaries.--Each teacher residency
candidate desiring a stipend or salary
during the period of residency shall
submit an application to the eligible
partnership at such time, and
containing such information and
assurances, as the eligible partnership
may require.
[(iii) Agreements to serve.--Each
application submitted under clause (ii)
shall contain or be accompanied by an
agreement that the applicant will--
[(I) serve as a full-time
teacher for a total of not less
than three academic years
immediately after successfully
completing the teaching
residency program;
[(II) fulfill the requirement
under subclause (I) by teaching
in a high-need school served by
the high-need local educational
agency in the eligible
partnership and teach a subject
or area that is designated as
high need by the partnership;
[(III) provide to the
eligible partnership a
certificate, from the chief
administrative officer of the
local educational agency in
which the resident is employed,
of the employment required in
subclauses (I) and (II) at the
beginning of, and upon
completion of, each year or
partial year of service;
[(IV) meet the applicable
State certification and
licensure requirements,
including any requirements for
certification obtained through
alternative routes to
certification, or, with regard
to special education teachers,
the qualifications described in
section 612(a)(14)(C) of the
Individuals with Disabilities
Education Act, when the
applicant begins to fulfill the
service obligation under this
clause; and
[(IV) meet the requirements
to be a highly qualified
teacher, as defined in section
9101 of the Elementary and
Secondary Education Act of
1965, or section 602 of the
Individuals with Disabilities
Education Act, when the
applicant begins to fulfill the
service obligation under this
clause; and
[(V) comply with the
requirements set by the
eligible partnership under
clause (iv) if the applicant is
unable or unwilling to complete
the service obligation required
by this clause.
[(iv) Repayments.--
[(I) In general.--A grantee
carrying out a teaching
residency program under this
paragraph shall require a
recipient of a stipend or
salary under clause (i) who
does not complete, or who
notifies the partnership that
the recipient intends not to
complete, the service
obligation required byclause
(iii)to repay such stipend or
salary to the eligible
partnership, together with
interest, at a rate specified
by the partnership in the
agreement, and in accordance
with such other terms and
conditions specified by the
eligible partnership, as
necessary.
[(II) Other terms and
conditions.--Any other terms
and conditions specified by the
eligible partnership may
include reasonable provisions
for pro-rata repayment of the
stipend or salary described in
clause (i) or for deferral of a
teaching resident's service
obligation required byclause
(iii),on grounds of health,
incapacitation, inability to
secure employment in a school
served by the eligible
partnership, being called to
active duty in the Armed Forces
of the United States, or other
extraordinary circumstances.
[(III) Use of repayments.--An
eligible partnership shall use
any repayment received under
this clause to carry out
additional activities that are
consistent with the purposes of
this subsection.
[(f) Partnership Grants for the Development of Leadership
Programs.--
[(1) In general.--An eligible partnership that
receives a grant under this section may carry out an
effective school leadership program, which may be
carried out in partnership with a local educational
agency located in a rural area and that shall include
all of the following activities:
[(A) Preparing individuals enrolled or
preparing to enroll in school leadership
programs for careers as superintendents,
principals, early childhood education program
directors, or other school leaders (including
individuals preparing to work in local
educational agencies located in rural areas who
may perform multiple duties in addition to the
role of a school leader).
[(B) Promoting strong leadership skills and,
as applicable, techniques for school leaders to
effectively--
[(i) create and maintain a data-
driven, professional learning community
within the leader's school;
[(ii) provide a climate conducive to
the professional development of
teachers, with a focus on improving
student academic achievement and the
development of effective instructional
leadership skills;
[(iii) understand the teaching and
assessment skills needed to support
successful classroom instruction and to
use data to evaluate teacher
instruction and drive teacher and
student learning;
[(iv) manage resources and school
time to improve student academic
achievement and ensure the school
environment is safe;
[(v) engage and involve parents,
community members, the local
educational agency, businesses, and
other community leaders, to leverage
additional resources to improve student
academic achievement; and
[(vi) understand how students learn
and develop in order to increase
academic achievement for all students.
[(C) Ensuring that individuals who
participate in the school leadership program
receive--
[(i) effective preservice preparation
as described in subparagraph (D);
[(ii) mentoring; and
[(iii) if applicable, full State
certification or licensure to become a
school leader.
[(D) Developing and improving a sustained and
high-quality preservice clinical education
program to further develop the leadership
skills of all prospective school leaders
involved in the program. Such clinical
education program shall do the following:
[(i) Incorporate year-long
opportunities for enrichment,
including--
[(I) clinical learning in
high-need schools served by the
high-need local educational
agency or a local educational
agency located in a rural area
in the eligible partnership and
identified by the eligible
partnership; and
[(II) closely supervised
interaction between prospective
school leaders and faculty, new
and experienced teachers, and
new and experienced school
leaders, in such high-need
schools.
[(ii) Integrate pedagogy and practice
and promote effective leadership
skills, meeting the unique needs of
urban, rural, or geographically
isolated communities, as applicable.
[(iii) Provide for mentoring of new
school leaders.
[(E) Creating an induction program for new
school leaders.
[(F) Developing and implementing effective
mechanisms to ensure that the eligible
partnership is able to recruit qualified
individuals to become school leaders through
the activities of the eligible partnership,
which may include an emphasis on recruiting
into school leadership professions--
[(i) individuals from
underrepresented populations;
[(ii) individuals to serve as
superintendents, principals, or other
school administrators in rural and
geographically isolated communities and
school leader shortage areas; and
[(iii) mid-career professionals from
other occupations, former military
personnel, and recent college graduates
with a record of academic distinction.
[(2) Selection of individuals for the leadership
program.--In order to be eligible for the school
leadership program under this subsection, an individual
shall be enrolled in or preparing to enroll in an
institution of higher education, and shall--
[(A) be a--
[(i) recent graduate of an
institution of higher education;
[(ii) mid-career professional from
outside the field of education with
strong content knowledge or a record of
professional accomplishment;
[(iii) current teacher who is
interested in becoming a school leader;
or
[(iv) school leader who is interested
in becoming a superintendent; and
[(B) submit an application to the leadership
program.
[(g) Partnership with Digital Education Content Developer.--
An eligible partnership that receives a grant under this
section may use grant funds provided to carry out the
activities described in subsection (d) or (e), or both, to
partner with a television public broadcast station, as defined
in section 397(6) of the Communications Act of 1934 (47 U.S.C.
397(6)), or another entity that develops digital educational
content, for the purpose of improving the quality of pre-
baccalaureate teacher preparation programs or to enhance the
quality of preservice training for prospective teachers.
[(h) Evaluation and Reporting.--The Secretary shall--
[(1) evaluate the programs assisted under this
section; and
[(2) make publicly available a report detailing the
Secretary's evaluation of each such program.
[(i) Consultation.--
[(1) In general.--Members of an eligible partnership
that receives a grant under this section shall engage
in regular consultation throughout the development and
implementation of programs and activities carried out
under this section.
[(2) Regular communication.--To ensure timely and
meaningful consultation as described in paragraph (1),
regular communication shall occur among all members of
the eligible partnership, including the high-need local
educational agency. Such communication shall continue
throughout the implementation of the grant and the
assessment of programs and activities under this
section.
[(3) Written consent.--The Secretary may approve
changes in grant activities of a grant under this
section only if the eligible partnership submits to the
Secretary a written consent to such changes signed by
all members of the eligible partnership.
[(j) Construction.--Nothing in this section shall be
construed to prohibit an eligible partnership from using grant
funds to coordinate with the activities of eligible
partnerships in other States or on a regional basis through
Governors, State boards of education, State educational
agencies, State agencies responsible for early childhood
education, local educational agencies, or State agencies for
higher education.
[(k) Supplement, Not Supplant.--Funds made available under
this section shall be used to supplement, and not supplant,
other Federal, State, and local funds that would otherwise be
expended to carry out activities under this section.
[SEC. 203. ADMINISTRATIVE PROVISIONS.
[(a) Duration; Number of Awards; Payments.--
[(1) Duration.--A grant awarded under this part shall
be awarded for a period of five years.
[(2) Number of awards.--An eligible partnership may
not receive more than one grant during a five-year
period. Nothing in this title shall be construed to
prohibit an individual member, that can demonstrate
need, of an eligible partnership that receives a grant
under this title from entering into another eligible
partnership consisting of new members and receiving a
grant with such other eligible partnership before the
five-year period described in the preceding sentence
applicable to the eligible partnership with which the
individual member has first partnered has expired.
[(b) Peer Review.--
[(1) Panel.--The Secretary shall provide the
applications submitted under this part to a peer review
panel for evaluation. With respect to each application,
the peer review panel shall initially recommend the
application for funding or for disapproval.
[(2) Priority.--The Secretary, in funding
applications under this part, shall give priority--
[(A) to eligible partnerships that include an
institution of higher education whose teacher
preparation program has a rigorous selection
process to ensure the highest quality of
students entering such program; and
[(B)(i) to applications from broad-based
eligible partnerships that involve businesses
and community organizations; or
[(ii) to eligible partnerships so that the
awards promote an equitable geographic
distribution of grants among rural and urban
areas.
[(3) Secretarial selection.--The Secretary shall
determine, based on the peer review process, which
applications shall receive funding and the amounts of
the grants. In determining grant amounts, the Secretary
shall take into account the total amount of funds
available for all grants under this part and the types
of activities proposed to be carried out by the
eligible partnership.
[(c) Matching Requirements.--
[(1) In general.--Each eligible partnership receiving
a grant under this part shall provide, from non-Federal
sources, an amount equal to 100 percent of the amount
of the grant, which may be provided in cash or in-kind,
to carry out the activities supported by the grant.
[(2) Waiver.--The Secretary may waive all or part of
the matching requirement described in paragraph (1) for
any fiscal year for an eligible partnership if the
Secretary determines that applying the matching
requirement to the eligible partnership would result in
serious hardship or an inability to carry out the
authorized activities described in this part.
[(d) Limitation on Administrative Expenses.--An eligible
partnership that receives a grant under this part may use not
more than two percent of the funds provided to administer the
grant.
[SEC. 204. ACCOUNTABILITY AND EVALUATION.
[(a) Eligible Partnership Evaluation.--Each eligible
partnership submitting an application for a grant under this
part shall establish, and include in such application, an
evaluation plan that includes strong and measurable performance
objectives. The plan shall include objectives and measures for
increasing--
[(1) achievement for all prospective and new
teachers, as measured by the eligible partnership;
[(2) teacher retention in the first three years of a
teacher's career;
[(3) improvement in the pass rates and scaled scores
for initial State certification or licensure of
teachers; and
[(4)(A) the percentage of teachers who meet
theapplicable State certification and licensure
requirements, including any requirements for
certification obtained throughalternative routes to
certification, or, with regard to specialeducation
teachers, the qualifications described in
section612(a)(14)(C) of the Individuals with
Disabilities Education Act(20 U.S.C. 1412(a)(14)(C)),
hired by the high-need local educational agency
participating in the eligible partnership;
[(B) the percentage of teachers who meet
theapplicable State certification and licensure
requirements, including any requirements for
certification obtained throughalternative routes to
certification, or, with regard to specialeducation ers,
the qualifications described in section612(a)(14)(C) of
the Individuals with Disabilities Education Act(20
U.S.C. 1412(a)(14)(C)), hired by the high-need local
educational agency who are members of underrepresented
groups;
[(C) the percentage of teachers who meet
theapplicable State certification and licensure
requirements, including any requirements for
certification obtained throughalternative routes to
certification, or, with regard to specialeducation
teachers, the qualifications described in
section612(a)(14)(C) of the Individuals with
Disabilities Education Act(20 U.S.C. 1412(a)(14)(C)),
hired by the high-need local educational agency who
teach high-need academic subject areas (such as
reading, mathematics, science, and foreign language,
including less commonly taught languages and critical
foreign languages);
[(D) the percentage of teachers who meet
theapplicable State certification and licensure
requirements, including any requirements for
certification obtained throughalternative routes to
certification, or, with regard to specialeducation
teachers, the qualifications described in
section612(a)(14)(C) of the Individuals with
Disabilities Education Act(20 U.S.C. 1412(a)(14)(C)),
hired by the high-need local educational agency who
teach in high-need areas (including special education,
language instruction educational programs for limited
English proficient students, and early childhood
education);
[(E) the percentage of teachers who meet
theapplicable State certification and licensure
requirements, including any requirements for
certification obtained throughalternative routes to
certification, or, with regard to specialeducation
teachers, the qualifications described in
section612(a)(14)(C) of the Individuals with
Disabilities Education Act(20 U.S.C. 1412(a)(14)(C)),
hired by the high-need local educational agency who
teach in high-need schools, disaggregated by the
elementary school and secondary school levels;
[(F) as applicable, the percentage of early childhood
education program classes in the geographic area served
by the eligible partnership taught by early childhood
educators who are highly competent; and
[(G) as applicable, the percentage of teachers
trained--
[(i) to integrate technology effectively into
curricula and instruction, including technology
consistent with the principles of universal
design for learning; and
[(ii) to use technology effectively to
collect, manage, and analyze data to improve
teaching and learning for the purpose of
improving student academic achievement.
[(b) Information.--An eligible partnership receiving a grant
under this part shall ensure that teachers, principals, school
superintendents, faculty, and leadership at institutions of
higher education located in the geographic areas served by the
eligible partnership are provided information, including
through electronic means, about the activities carried out with
funds under this part.
[(c) Revised Application.--If the Secretary determines that
an eligible partnership receiving a grant under this part is
not making substantial progress in meeting the purposes, goals,
objectives, and measures of the grant, as appropriate, by the
end of the third year of a grant under this part, then the
Secretary--
[(1) shall cancel the grant; and
[(2) may use any funds returned or available because
of such cancellation under paragraph (1) to--
[(A) increase other grant awards under this
part; or
[(B) award new grants to other eligible
partnerships under this part.
[(d) Evaluation and Dissemination.--The Secretary shall
evaluate the activities funded under this part and report the
findings regarding the evaluation of such activities to the
authorizing committees. The Secretary shall broadly
disseminate--
[(1) successful practices developed by eligible
partnerships under this part; and
[(2) information regarding such practices that were
found to be ineffective.
[SEC. 205. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.
[(a) Institutional and Program Report Cards on the Quality of
Teacher Preparation.--
[(1) Report card.--Each institution of higher
education that conducts a traditional teacher
preparation program or alternative routes to State
certification or licensure program and that enrolls
students receiving Federal assistance under this Act
shall report annually to the State and the general
public, in a uniform and comprehensible manner that
conforms with the definitions and methods established
by the Secretary, the following:
[(A) Goals and assurances.--
[(i) For the most recent year for
which the information is available for
the institution--
[(I) whether the goals set
under section 206 have been
met; and
[(II) a description of the
activities the institution
implemented to achieve such
goals.
[(ii) A description of the steps the
institution is taking to improve its
performance in meeting the annual goals
set under section 206.
[(iii) A description of the
activities the institution has
implemented to meet the assurances
provided under section 206.
[(B) Pass rates and scaled scores.--For the
most recent year for which the information is
available for those students who took the
assessments used for teacher certification or
licensure by the State in which the program is
located and are enrolled in the traditional
teacher preparation program or alternative
routes to State certification or licensure
program, and for those who have taken such
assessments and have completed the traditional
teacher preparation program or alternative
routes to State certification or licensure
program during the two-year period preceding
such year, for each of such assessments--
[(i) the percentage of students who
have completed 100 percent of the
nonclinical coursework and taken the
assessment who pass such assessment;
[(ii) the percentage of all students
who passed such assessment;
[(iii) the percentage of students who
have taken such assessment who enrolled
in and completed the traditional
teacher preparation program or
alternative routes to State
certification or licensure program, as
applicable;
[(iv) the average scaled score for
all students who took such assessment;
[(v) a comparison of the program's
pass rates with the average pass rates
for programs in the State; and
[(vi) a comparison of the program's
average scaled scores with the average
scaled scores for programs in the
State.
[(C) Program information.--A description of--
[(i) the criteria for admission into
the program;
[(ii) the number of students in the
program (disaggregated by race,
ethnicity, and gender);
[(iii) the average number of hours of
supervised clinical experience required
for those in the program;
[(iv) the number of full-time
equivalent faculty and students in the
supervised clinical experience; and
[(v) the total number of students who
have been certified or licensed as
teachers, disaggregated by subject and
area of certification or licensure.
[(D) Statement.--In States that require
approval or accreditation of teacher
preparation programs, a statement of whether
the institution's program is so approved or
accredited, and by whom.
[(E) Designation as low-performing.--Whether
the program has been designated as low-
performing by the State under section 207(a).
[(F) Use of technology.--A description of the
activities, including activities consistent
with the principles of universal design for
learning, that prepare teachers to integrate
technology effectively into curricula and
instruction, and to use technology effectively
to collect, manage, and analyze data in order
to improve teaching and learning for the
purpose of increasing student academic
achievement.
[(G) Teacher training.--A description of the
activities that prepare general education and
special education teachers to teach students
with disabilities effectively, including
training related to participation as a member
of individualized education program teams, as
defined in section 614(d)(1)(B) of the
Individuals with Disabilities Education Act,
and to effectively teach students who are
limited English proficient.
[(2) Report.--Each eligible partnership receiving a
grant under section 202 shall report annually on the
progress of the eligible partnership toward meeting the
purposes of this part and the objectives and measures
described in section 204(a).
[(3) Fines.--The Secretary may impose a fine not to
exceed $27,500 on an institution of higher education
for failure to provide the information described in
this subsection in a timely or accurate manner.
[(4) Special rule.--In the case of an institution of
higher education that conducts a traditional teacher
preparation program or alternative routes to State
certification or licensure program and has fewer than
10 scores reported on any single initial teacher
certification or licensure assessment during an
academic year, the institution shall collect and
publish information, as required under paragraph
(1)(B), with respect to an average pass rate and scaled
score on each State certification or licensure
assessment taken over a three-year period.
[(b) State Report Card on the Quality of Teacher
Preparation.--
[(1) In general.--Each State that receives funds
under this Act shall provide to the Secretary, and make
widely available to the general public, in a uniform
and comprehensible manner that conforms with the
definitions and methods established by the Secretary,
an annual State report card on the quality of teacher
preparation in the State, both for traditional teacher
preparation programs and for alternative routes to
State certification or licensure programs, which shall
include not less than the following:
[(A) A description of the reliability and
validity of the teacher certification and
licensure assessments, and any other
certification and licensure requirements, used
by the State.
[(B) The standards and criteria that
prospective teachers must meet to attain
initial teacher certification or licensure and
to be certified or licensed to teach particular
academic subjects, areas, or grades within the
State.
[(C) A description of how the assessments and
requirements described in subparagraph (A) are
aligned with the challenging State academic
standards required under section 1111(b)(1) of
the Elementary and Secondary Education Act of
1965 and, as applicable, State early learning
standards for early childhood education
programs.
[(D) For each of the assessments used by the
State for teacher certification or licensure--
[(i) for each institution of higher
education located in the State and each
entity located in the State, including
those that offer an alternative route
for teacher certification or licensure,
the percentage of students at such
institution or entity who have
completed 100 percent of the
nonclinical coursework and taken the
assessment who pass such assessment;
[(ii) the percentage of all such
students at all such institutions and
entities who have taken the assessment
who pass such assessment;
[(iii) the percentage of students who
have taken the assessment who enrolled
in and completed a teacher preparation
program; and
[(iv) the average scaled score of
individuals participating in such a
program, or who have completed such a
program during the two-year period
preceding the first year for which the
annual State report card is provided,
who took each such assessment.
[(E) A description of alternative routes to
teacher certification or licensure in the State
(including any such routes operated by entities
that are not institutions of higher education),
if any, including, for each of the assessments
used by the State for teacher certification or
licensure--
[(i) the percentage of individuals
participating in such routes, or who
have completed such routes during the
two-year period preceding the date for
which the determination is made, who
passed each such assessment; and
[(ii) the average scaled score of
individuals participating in such
routes, or who have completed such
routes during the two-year period
preceding the first year for which the
annual State report card is provided,
who took each such assessment.
[(F) A description of the State's criteria
for assessing the performance of teacher
preparation programs within institutions of
higher education in the State. Such criteria
shall include indicators of the academic
content knowledge and teaching skills of
students enrolled in such programs.
[(G) For each teacher preparation program in
the State--
[(i) the criteria for admission into
the program;
[(ii) the number of students in the
program, disaggregated by race,
ethnicity, and gender (except that such
disaggregation shall not be required in
a case in which the number of students
in a category is insufficient to yield
statistically reliable information or
the results would reveal personally
identifiable information about an
individual student);
[(iii) the average number of hours of
supervised clinical experience required
for those in the program; and
[(iv) the number of full-time
equivalent faculty, adjunct faculty,
and students in supervised clinical
experience.
[(H) For the State as a whole, and for each
teacher preparation program in the State, the
number of teachers prepared, in the aggregate
and reported separately by--
[(i) area of certification or
licensure;
[(ii) academic major; and
[(iii) subject area for which the
teacher has been prepared to teach.
[(I) A description of the extent to which
teacher preparation programs are addressing
shortages of teachers who meet the applicable
Statecertification and licensure requirements,
including any requirementsfor certification
obtained through alternative routes
tocertification, or, with regard to special
education teachers, thequalifications described
in section 612(a)(14)(C) of the Individualswith
Disabilities Education Act, by area of
certification or licensure, subject, and
specialty, in the State's public schools.
[(J) The extent to which teacher preparation
programs prepare teachers, including general
education and special education teachers, to
teach students with disabilities effectively,
including training related to participation as
a member of individualized education program
teams, as defined in section 614(d)(1)(B) of
the Individuals with Disabilities Education
Act.
[(K) A description of the activities that
prepare teachers to--
[(i) integrate technology effectively
into curricula and instruction,
including activities consistent with
the principles of universal design for
learning; and
[(ii) use technology effectively to
collect, manage, and analyze data to
improve teaching and learning for the
purpose of increasing student academic
achievement.
[(L) The extent to which teacher preparation
programs prepare teachers, including general
education and special education teachers, to
effectively teach students who are limited
English proficient.
[(2) Prohibition against creating a national list.--
The Secretary shall not create a national list or
ranking of States, institutions, or schools using the
scaled scores provided under this subsection.
[(c) Data Quality.--The Secretary shall prescribe regulations
to ensure the reliability, validity, integrity, and accuracy of
the data submitted pursuant to this section.
[(d) Report of the Secretary on the Quality of Teacher
Preparation.--
[(1) Report card.--The Secretary shall annually
provide to the authorizing committees, and publish and
make widely available, a report card on teacher
qualifications and preparation in the United States,
including all the information reported in subparagraphs
(A) through (L) of subsection (b)(1). Such report shall
identify States for which eligible partnerships
received a grant under this part.
[(2) Report to congress.--The Secretary shall prepare
and submit a report to the authorizing committees that
contains the following:
[(A) A comparison of States' efforts to
improve the quality of the current and future
teaching force.
[(B) A comparison of eligible partnerships'
efforts to improve the quality of the current
and future teaching force.
[(C) The national mean and median scaled
scores and pass rate on any standardized test
that is used in more than one State for teacher
certification or licensure.
[(3) Special rule.--In the case of a teacher
preparation program with fewer than ten scores reported
on any single initial teacher certification or
licensure assessment during an academic year, the
Secretary shall collect and publish, and make publicly
available, information with respect to an average pass
rate and scaled score on each State certification or
licensure assessment taken over a three-year period.
[(e) Coordination.--The Secretary, to the extent practicable,
shall coordinate the information collected and published under
this part among States for individuals who took State teacher
certification or licensure assessments in a State other than
the State in which the individual received the individual's
most recent degree.
[SEC. 206. TEACHER DEVELOPMENT.
[(a) Annual Goals.--Each institution of higher education that
conducts a traditional teacher preparation program (including
programs that offer any ongoing professional development
programs) or alternative routes to State certification or
licensure program, and that enrolls students receiving Federal
assistance under this Act, shall set annual quantifiable goals
for increasing the number of prospective teachers trained in
teacher shortage areas designated by the Secretary or by the
State educational agency, including mathematics, science,
special education, and instruction of limited English
proficient students.
[(b) Assurances.--Each institution described in subsection
(a)shall provide assurances to the Secretary that--
[(1) training provided to prospective teachers
responds to the identified needs of the local
educational agencies or States where the institution's
graduates are likely to teach, based on past hiring and
recruitment trends;
[(2) training provided to prospective teachers is
closely linked with the needs of schools and the
instructional decisions new teachers face in the
classroom;
[(3) prospective special education teachers receive
course work in core academic subjects and receive
training in providing instruction in core academic
subjects;
[(4) general education teachers receive training in
providing instruction to diverse populations, including
children with disabilities, limited English proficient
students, and children from low-income families; and
[(5) prospective teachers receive training on how to
effectively teach in urban and rural schools, as
applicable.
[(c) Rule of Construction.--Nothing in this section shall be
construed to require an institution to create a new teacher
preparation area of concentration or degree program or adopt a
specific curriculum in complying with this section.
[SEC. 207. STATE FUNCTIONS.
[(a) State Assessment.--In order to receive funds under this
Act, a State shall conduct an assessment to identify low-
performing teacher preparation programs in the State and to
assist such programs through the provision of technical
assistance. Each such State shall provide the Secretary with an
annual list of low-performing teacher preparation programs and
an identification of those programs at risk of being placed on
such list, as applicable. Such assessment shall be described in
the report under section 205(b). Levels of performance shall be
determined solely by the State and may include criteria based
on information collected pursuant to this part, including
progress in meeting the goals of--
[(1) increasing the percentage of teachers who meet
the applicable Statecertification and licensure
requirements, including any requirementsfor
certification obtained through alternative routes
tocertification, or, with regard to special education
teachers, thequalifications described in section
612(a)(14)(C) of the Individualswith Disabilities
Education Act, in the State, including increasing
professional development opportunities;
[(2) improving student academic achievement for
elementary and secondary students; and
[(3) raising the standards for entry into the
teaching profession.
[(b) Termination of Eligibility.--Any teacher preparation
program from which the State has withdrawn the State's
approval, or terminated the State's financial support, due to
the low performance of the program based upon the State
assessment described in subsection (a)--
[(1) shall be ineligible for any funding for
professional development activities awarded by the
Department;
[(2) may not be permitted to accept or enroll any
student who receives aid under title IV in the
institution's teacher preparation program;
[(3) shall provide transitional support, including
remedial services if necessary, for students enrolled
at the institution at the time of termination of
financial support or withdrawal of approval; and
[(4) shall be reinstated upon demonstration of
improved performance, as determined by the State.
[(c) Negotiated Rulemaking.--If the Secretary develops any
regulations implementing subsection (b)(2), the Secretary shall
submit such proposed regulations to a negotiated rulemaking
process, which shall include representatives of States,
institutions of higher education, and educational and student
organizations.
[(d) Application of the Requirements.--The requirements of
this section shall apply to both traditional teacher
preparation programs and alternative routes to State
certification and licensure programs.
[SEC. 208. GENERAL PROVISIONS.
[(a) Methods.--In complying with sections 205 and 206, the
Secretary shall ensure that States and institutions of higher
education use fair and equitable methods in reporting and that
the reporting methods do not reveal personally identifiable
information.
[(b) Special Rule.--For each State that does not use content
assessments as a means of ensuring that all teachers teaching
in core academic subjects within the State meet the
applicableState certification and licensure requirements,
includingany requirements for certification obtained through
alternativeroutes to certification, in accordance with the
State plan submitted or revised under section 1111 of such Act,
and that each person employed as a special education teacher in
the State who teaches elementary school or secondary school
meets thequalifications described in section 612(a)(14)(C) of
theIndividuals with Disabilities Education Act, the Secretary
shall--
[(1) to the extent practicable, collect data
comparable to the data required under this part from
States, local educational agencies, institutions of
higher education, or other entities that administer
such assessments to teachers or prospective teachers;
and
[(2) notwithstanding any other provision of this
part, use such data to carry out requirements of this
part related to assessments, pass rates, and scaled
scores.
[(c) Release of Information to Teacher Preparation
Programs.--
[(1) In general.--For the purpose of improving
teacher preparation programs, a State that receives
funds under this Act, or that participates as a member
of a partnership, consortium, or other entity that
receives such funds, shall provide to a teacher
preparation program, upon the request of the teacher
preparation program, any and all pertinent education-
related information that--
[(A) may enable the teacher preparation
program to evaluate the effectiveness of the
program's graduates or the program itself; and
[(B) is possessed, controlled, or accessible
by the State.
[(2) Content of information.--The information
described in paragraph (1)--
[(A) shall include an identification of
specific individuals who graduated from the
teacher preparation program to enable the
teacher preparation program to evaluate the
information provided to the program from the
State with the program's own data about the
specific courses taken by, and field
experiences of, the individual graduates; and
[(B) may include--
[(i) kindergarten through grade 12
academic achievement and demographic
data, without revealing personally
identifiable information about an
individual student, for students who
have been taught by graduates of the
teacher preparation program; and
[(ii) teacher effectiveness
evaluations for teachers who graduated
from the teacher preparation program.
[SEC. 209. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
part $300,000,000 for fiscal year 2009 and such sums as may be
necessary for each of the two succeeding fiscal years.
[PART B--ENHANCING TEACHER EDUCATION
[SEC. 230. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
part such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years.
[Subpart 1--Preparing Teachers for Digital Age Learners
[SEC. 231. PROGRAM AUTHORIZED.
[(a) Program Authority.--The Secretary is authorized to award
grants to, or enter into contracts or cooperative agreements
with, eligible consortia to pay the Federal share of the costs
of projects to--
[(1) assist in the graduation of teacher candidates
who are prepared to use modern information,
communication, and learning tools to--
[(A) improve student learning, assessment, and
learning management; and
[(B) help students develop learning skills to succeed
in higher education and to enter the workforce;
[(2) strengthen and develop partnerships among the
stakeholders in teacher preparation to transform
teacher education and ensure technology-rich teaching
and learning environments throughout a teacher
candidate's preservice education, including clinical
experiences; and
[(3) assess the effectiveness of departments,
schools, and colleges of education at institutions of
higher education in preparing teacher candidates for
successful implementation of technology-rich teaching
and learning environments, including environments
consistent with the principles of universal design for
learning, that enable kindergarten through grade 12
students to develop learning skills to succeed in
higher education and to enter the workforce.
[(b) Amount and Duration.--A grant, contract, or cooperative
agreement under this subpart--
[(1) shall be for not more than $2,000,000;
[(2) shall be for a three-year period; and
[(3) may be renewed for one additional year.
[(c) Non-Federal Share Requirement.--The Federal share of the
cost of any project funded under this subpart shall not exceed
75 percent. The non-Federal share of the cost of such project
may be provided in cash or in kind, fairly evaluated, including
services.
[(d) Definition of Eligible Consortium.--In this subpart, the
term ``eligible consortium'' means a consortium of members that
includes the following:
[(1) Not less than one institution of higher
education that awards baccalaureate or masters degrees
and prepares teachers for initial entry into teaching.
[(2) Not less than one State educational agency or
local educational agency.
[(3) A department, school, or college of education at
an institution of higher education.
[(4) A department, school, or college of arts and
sciences at an institution of higher education.
[(5) Not less than one entity with the capacity to
contribute to the technology-related reform of teacher
preparation programs, which may be a professional
association, foundation, museum, library, for-profit
business, public or private nonprofit organization,
community-based organization, or other entity.
[SEC. 232. USES OF FUNDS.
[(a) In General.--An eligible consortium that receives a
grant or enters into a contract or cooperative agreement under
this subpart shall use funds made available under this subpart
to carry out a project that--
[(1) develops long-term partnerships among members of
the consortium that are focused on effective teaching
with modern digital tools and content that
substantially connect preservice preparation of teacher
candidates with high-need schools; or
[(2) transforms the way departments, schools, and
colleges of education teach classroom technology
integration, including the principles of universal
design, to teacher candidates.
[(b) Uses of Funds for Partnership Grants.--In carrying out a
project under subsection (a)(1), an eligible consortium shall--
[(1) provide teacher candidates, early in their
preparation, with field experiences with technology in
educational settings;
[(2) build the skills of teacher candidates to
support technology-rich instruction, assessment and
learning management in content areas, technology
literacy, an understanding of the principles of
universal design, and the development of other skills
for entering the workforce;
[(3) provide professional development in the use of
technology for teachers, administrators, and content
specialists who participate in field placement;
[(4) provide professional development of technology
pedagogical skills for faculty of departments, schools,
and colleges of education and arts and sciences;
[(5) implement strategies for the mentoring of
teacher candidates by members of the consortium with
respect to technology implementation;
[(6) evaluate teacher candidates during the first
years of teaching to fully assess outcomes of the
project;
[(7) build collaborative learning communities for
technology integration within the consortium to sustain
meaningful applications of technology in the classroom
during teacher preparation and early career practice;
and
[(8) evaluate the effectiveness of the project.
[(c) Uses of Funds for Transformation Grants.--In carrying
out a project under subsection (a)(2), an eligible consortium
shall--
[(1) redesign curriculum to require collaboration
between the department, school, or college of education
faculty and the department, school, or college of arts
and sciences faculty who teach content or methods
courses for training teacher candidates;
[(2) collaborate between the department, school, or
college of education faculty and the department,
school, or college of arts and science faculty and
academic content specialists at the local educational
agency to educate preservice teachers who can integrate
technology and pedagogical skills in content areas;
[(3) collaborate between the department, school, or
college of education faculty and the department,
school, or college of arts and sciences faculty who
teach courses to preservice teachers to--
[(A) develop and implement a plan for preservice
teachers and continuing educators that demonstrates
effective instructional strategies and application of
such strategies in the use of digital tools to
transform the teaching and learning process; and
[(B) better reach underrepresented preservice teacher
populations with programs that connect such preservice
teacher populations with applications of technology;
[(4) collaborate among faculty and students to create
and disseminate case studies of technology applications
in classroom settings with a goal of improving student
academic achievement in high-need schools;
[(5) provide additional technology resources for
preservice teachers to plan and implement technology
applications in classroom settings that provide
evidence of student learning; and
[(6) bring together expertise from departments,
schools, or colleges of education, arts and science
faculty, and academic content specialists at the local
educational agency to share and disseminate technology
applications in the classroom through teacher
preparation and into early career practice.
[SEC. 233. APPLICATION REQUIREMENTS.
[To be eligible to receive a grant or enter into a contract
or cooperative agreement under this subpart, an eligible
consortium shall submit an application to the Secretary at such
time, in such manner, and containing such information as the
Secretary may require. Such application shall include the
following:
[(1) A description of the project to be carried out
with the grant, including how the project will--
[(A) develop a long-term partnership focused
on effective teaching with modern digital tools
and content that substantially connects
preservice preparation of teacher candidates
with high-need schools; or
[(B) transform the way departments, schools,
and colleges of education teach classroom
technology integration, including the
principles of universal design, to teacher
candidates.
[(2) A demonstration of--
[(A) the commitment, including the financial
commitment, of each of the members of the
consortium for the proposed project; and
[(B) the support of the leadership of each
organization that is a member of the consortium
for the proposed project.
[(3) A description of how each member of the
consortium will participate in the project.
[(4) A description of how the State educational
agency or local educational agency will incorporate the
project into the agency's technology plan, if such a
plan already exists.
[(5) A description of how the project will be
continued after Federal funds are no longer available
under this subpart for the project.
[(6) A description of how the project will
incorporate--
[(A) State teacher technology standards; and
[(B) State student technology standards.
[(7) A plan for the evaluation of the project, which
shall include benchmarks to monitor progress toward
specific project objectives.
[SEC. 234. EVALUATION.
[Not less than ten percent of the funds awarded to an
eligible consortium to carry out a project under this subpart
shall be used to evaluate the effectiveness of such project.
[Subpart 2--Honorable Augustus F. Hawkins Centers of Excellence
[SEC. 241. DEFINITIONS.
[In this subpart:
[(1) Eligible institution.--The term ``eligible
institution'' means--
[(A) an institution of higher education that
has a teacher preparation program that is a
qualified teacher preparation program and that
is--
[(i) a part B institution (as defined
in section 322);
[(ii) a Hispanic-serving institution
(as defined in section 502);
[(iii) a Tribal College or University
(as defined in section 316);
[(iv) an Alaska Native-serving
institution (as defined in section
317(b));
[(v) a Native Hawaiian-serving
institution (as defined in section
317(b));
[(vi) a Predominantly Black
Institution (as defined in section
318);
[(vii) an Asian American and Native
American Pacific Islander-serving
institution (as defined in section
320(b)); or
[(viii) a Native American-serving,
nontribal institution (as defined in
section 319);
[(B) a consortium of institutions described
in subparagraph (A); or
[(C) an institution described in subparagraph
(A), or a consortium described in subparagraph
(B), in partnership with any other institution
of higher education, but only if the center of
excellence established under section 242 is
located at an institution described in
subparagraph (A).
[(2) Scientifically based reading research.--The term
``scientifically based reading research''--
[(A) means research that applies rigorous,
systemic, and objective procedures to obtain
valid knowledge relevant to reading
development, reading instruction, and reading
difficulties; and
[(B) includes research that--
[(i) employs systemic, empirical
methods that draw on observation or
experiment;
[(ii) involves rigorous data analyses
that are adequate to test the stated
hypotheses and justify the general
conclusions drawn;
[(iii) relies on measurements or
observational methods that provide
valid data across evaluators and
observers and across multiple
measurements and observations; and
[(iv) has been accepted by a peer-
reviewed journal or approved by a panel
of independent experts through a
comparably rigorous, objective, and
scientific review.
[SEC. 242. AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE.
[(a) Program Authorized.--From the amounts appropriated to
carry out this part, the Secretary is authorized to award
competitive grants to eligible institutions to establish
centers of excellence.
[(b) Use of Funds.--Grants provided by the Secretary under
this subpart shall be used to ensure that current and future
teachers meet the applicableState certification and licensure
requirements, includingany requirements for certification
obtained through alternativeroutes to certification, or, with
regard to specialeducation teachers, the qualifications
described in section612(a)(14)(C) of the Individuals with
Disabilities EducationAct, by carrying out one or more of the
following activities:
[(1) Implementing reforms within teacher preparation
programs to ensure that such programs are preparing
teachers who meet the applicable State certification
andlicensure requirements, including any requirements
for certificationobtained through alternative routes to
certification,or, with regard to special education
teachers, thequalifications described in section
612(a)(14)(C) of theIndividuals with Disabilities
Education Act, are able to understand scientifically
valid research, and are able to use advanced technology
effectively in the classroom, including use of
instructional techniques to improve student academic
achievement, by--
[(A) retraining or recruiting faculty; and
[(B) designing (or redesigning) teacher
preparation programs that--
[(i) prepare teachers to serve in
low-performing schools and close
student achievement gaps, and that are
based on rigorous academic content,
scientifically valid research
(including scientifically based reading
research and mathematics research, as
it becomes available), and challenging
State academic content standards and
student academic achievement standards;
and
[(ii) promote strong teaching skills.
[(2) Providing sustained and high-quality preservice
clinical experience, including the mentoring of
prospective teachers by exemplary teachers,
substantially increasing interaction between faculty at
institutions of higher education and new and
experienced teachers, principals, and other
administrators at elementary schools or secondary
schools, and providing support, including preparation
time, for such interaction.
[(3) Developing and implementing initiatives to
promote retention of teachers who meetthe applicable
State certification and licensure
requirements,including any requirements for
certificationobtained through alternative routes to
certification, or, withregard to special education
teachers, the qualificationsdescribed in section
612(a)(14)(C) of the Individuals withDisabilities
Education Act, and highly qualified principals,
including minority teachers and principals, including
programs that provide--
[(A) teacher or principal mentoring from
exemplary teachers or principals, respectively;
or
[(B) induction and support for teachers and
principals during their first three years of
employment as teachers or principals,
respectively.
[(4) Awarding scholarships based on financial need to
help students pay the costs of tuition, room, board,
and other expenses of completing a teacher preparation
program, not to exceed the cost of attendance.
[(5) Disseminating information on effective practices
for teacher preparation and successful teacher
certification and licensure assessment preparation
strategies.
[(6) Activities authorized under section 202.
[(c) Application.--Any eligible institution desiring a grant
under this subpart shall submit an application to the Secretary
at such a time, in such a manner, and accompanied by such
information as the Secretary may require.
[(d) Minimum Grant Amount.--The minimum amount of each grant
under this subpart shall be $500,000.
[(e) Limitation on Administrative Expenses.--An eligible
institution that receives a grant under this subpart may use
not more than two percent of the funds provided to administer
the grant.
[(f) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out this subpart.
[Subpart 3--Preparing General Education Teachers to More Effectively
Educate Students with Disabilities
[SEC. 251. TEACH TO REACH GRANTS.
[(a) Authorization of Program.--
[(1) In general.--The Secretary is authorized to
award grants, on a competitive basis, to eligible
partnerships to improve the preparation of general
education teacher candidates to ensure that such
teacher candidates possess the knowledge and skills
necessary to effectively instruct students with
disabilities in general education classrooms.
[(2) Duration of grants.--A grant under this section
shall be awarded for a period of not more than five
years.
[(3) Non-federal share.--An eligible partnership that
receives a grant under this section shall provide not
less than 25 percent of the cost of the activities
carried out with such grant from non-Federal sources,
which may be provided in cash or in kind.
[(b) Definition of Eligible Partnership.--In this section,
the term ``eligible partnership'' means a partnership that--
[(1) shall include--
[(A) one or more departments or programs at
an institution of higher education--
[(i) that prepare elementary or
secondary general education teachers;
[(ii) that have a program of study
that leads to an undergraduate degree,
a master's degree, or completion of a
postbaccalaureate program required for
teacher certification; and
[(iii) the graduates of which meet
the applicable State certification and
licensure requirements, including any
requirements for certificationobtained
through alternative routes to
certification, or,with regard to
special education teachers, the
qualificationsdescribed in section
612(a)(14)(C) of the Individuals
withDisabilities Education Act;
[(B) a department or program of special
education at an institution of higher
education;
[(C) a department or program at an
institution of higher education that provides
degrees in core academic subjects; and
[(D) a high-need local educational agency;
and
[(2) may include a department or program of
mathematics, earth or physical science, foreign
language, or another department at the institution that
has a role in preparing teachers.
[(c) Activities.--An eligible partnership that receives a
grant under this section--
[(1) shall use the grant funds to--
[(A) develop or strengthen an undergraduate,
postbaccalaureate, or master's teacher
preparation program by integrating special
education strategies into the general education
curriculum and academic content;
[(B) provide teacher candidates participating
in the program under subparagraph (A) with
skills related to--
[(i) response to intervention,
positive behavioral interventions and
supports, differentiated instruction,
and data driven instruction;
[(ii) universal design for learning;
[(iii) determining and utilizing
accommodations for instruction and
assessments;
[(iv) collaborating with special
educators, related services providers,
and parents, including participation in
individualized education program
development and implementation; and
[(v) appropriately utilizing
technology and assistive technology for
students with disabilities; and
[(C) provide extensive clinical experience
for participants described in subparagraph (B)
with mentoring and induction support throughout
the program that continues during the first two
years of full-time teaching; and
[(2) may use grant funds to develop and administer
alternate assessments of students with disabilities.
[(d) Application.--An eligible partnership seeking a grant
under this section shall submit an application to the Secretary
at such time, in such manner, and containing such information
as the Secretary may require. Such application shall include--
[(1) a self-assessment by the eligible partnership of
the existing teacher preparation program at the
institution of higher education and needs related to
preparing general education teacher candidates to
instruct students with disabilities; and
[(2) an assessment of the existing personnel needs
for general education teachers who instruct students
with disabilities, performed by the local educational
agency in which most graduates of the teacher
preparation program are likely to teach after
completion of the program under subsection (c)(1).
[(e) Peer Review.--The Secretary shall convene a peer review
committee to review applications for grants under this section
and to make recommendations to the Secretary regarding the
selection of grantees. Members of the peer review committee
shall be recognized experts in the fields of special education,
teacher preparation, and general education and shall not be in
a position to benefit financially from any grants awarded under
this section.
[(f) Evaluations.--
[(1) By the partnership.--
[(A) In general.--An eligible partnership
receiving a grant under this section shall
conduct an evaluation at the end of the grant
period to determine--
[(i) the effectiveness of the general
education teachers who completed a
program under subsection (c)(1) with
respect to instruction of students with
disabilities in general education
classrooms; and
[(ii) the systemic impact of the
activities carried out by such grant on
how each institution of higher
education that is a member of the
partnership prepares teachers for
instruction in elementary schools and
secondary schools.
[(B) Report to the secretary.--Each eligible
partnership performing an evaluation under
subparagraph (A) shall report the findings of
such evaluation to the Secretary.
[(2) Report by the secretary.--Not later than 180
days after the last day of the grant period under this
section, the Secretary shall make available to Congress
and the public the findings of the evaluations
submitted under paragraph (1), and information on best
practices related to effective instruction of students
with disabilities in general education classrooms.
[Subpart 4--Adjunct Teacher Corps
[SEC. 255. ADJUNCT TEACHER CORPS.
[(a) Purpose.--The purpose of this section is to create
opportunities for professionals and other individuals with
subject matter expertise in mathematics, science, or critical
foreign languages to provide such subject matter expertise to
secondary school students on an adjunct basis.
[(b) Program Authorized.--The Secretary is authorized to
award grants on a competitive basis to eligible entities to
identify, recruit, and train qualified individuals with subject
matter expertise in mathematics, science, or critical foreign
languages to serve as adjunct content specialists.
[(c) Duration of Grants.--The Secretary may award grants
under this section for a period of not more than five years.
[(d) Eligible Entity.--In this section, the term ``eligible
entity'' means--
[(1) a local educational agency; or
[(2) a partnership consisting of a local educational
agency, serving as a fiscal agent, and a public or
private educational organization or business.
[(e) Uses of Funds.--An eligible entity that receives a grant
under this section is authorized to use such grant to carry out
one or both of the following activities:
[(1) To develop the capacity of the eligible entity
to identify, recruit, and train individuals with
subject matter expertise in mathematics, science, or
critical foreign languages who are not employed in the
elementary and secondary education system (including
individuals in business and government, and individuals
who would participate through distance-learning
arrangements) to become adjunct content specialists.
[(2) To provide preservice training and on-going
professional development to adjunct content
specialists.
[(f) Applications.--
[(1) Application required.--An eligible entity that
desires a grant under this section shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require.
[(2) Contents.--An application submitted under
paragraph (1) shall include--
[(A) a description of--
[(i) the need for, and expected
benefits of using, adjunct content
specialists in the schools served by
the local educational agency, which may
include information on the difficulty
the local educational agency faces in
recruiting qualified faculty in
mathematics, science, and critical
foreign language courses;
[(ii) measurable objectives for the
activities supported by the grant,
including the number of adjunct content
specialists the eligible entity intends
to place in schools and classrooms, and
the gains in academic achievement
expected as a result of the addition of
such specialists;
[(iii) how the eligible entity will
establish criteria for and recruit the
most qualified individuals and public
or private organizations and businesses
to participate in the activities
supported by the grant;
[(iv) how the eligible entity will
provide preservice training and on-
going professional development to
adjunct content specialists to ensure
that such specialists have the capacity
to serve effectively;
[(v) how the eligible entity will use
funds received under this section,
including how the eligible entity will
evaluate the success of the activities
supported by the grant; and
[(vi) how the eligible entity will
support and continue the activities
supported by the grant after the grant
has expired, including how such entity
will seek support from other sources,
such as State and local government and
the private sector; and
[(B) an assurance that the use of adjunct
content specialists will not result in the
displacement or transfer of currently employed
teachers nor a reduction in the number of
overall teachers in the district.
[(g) Priorities.--In awarding grants under this section, the
Secretary shall give priority to eligible entities that
demonstrate in the application for such a grant a plan to--
[(1) serve the schools served by the local
educational agency that have a large number or
percentage of students performing below grade level in
mathematics, science, or critical foreign language
courses;
[(2) serve local educational agencies that have a
large number or percentage of students from low-income
families; and
[(3) recruit and train individuals to serve as
adjunct content specialists in schools that have an
insufficient number of teachers in mathematics,
science, or critical foreign languages.
[(h) Matching Requirement.--Each eligible entity that
receives a grant under this section shall provide, from non-
Federal sources, an amount equal to 100 percent of the amount
of such grant (in cash or in kind) to carry out the activities
supported by such grant.
[(i) Performance Report.--Each eligible entity receiving a
grant under this section shall prepare and submit to the
Secretary a final report on the results of the activities
supported by such grant, which shall contain such information
as the Secretary may require, including any improvements in
student academic achievement as a result of the use of adjunct
content specialists.
[(j) Evaluation.--The Secretary shall evaluate the activities
supported by grants under this section, including the impact of
such activities on student academic achievement, and shall
report the results of such evaluation to the authorizing
committees.
[(k) Definition.--In this section, the term ``adjunct content
specialist'' means an individual who--
[(1) meets the applicable State certification and
licensurerequirements, including any requirements for
certificationobtained through alternative routes to
certification, or, withregard to special education
teachers, the qualificationsdescribed in section
612(a)(14)(C) of the Individuals withDisabilities
Education Act;
[(2) has demonstrated expertise in mathematics,
science, or a critical foreign language, as determined
by the local educational agency; and
[(3) is not the primary provider of instructional
services to a student, unless the adjunct content
specialist is under the direct supervision of a teacher
who meets the applicable State certificationand
licensure requirements, including any requirementsfor
certification obtained through alternative routesto
certification, or, with regard to special
educationteachers, the qualifications described in
section612(a)(14)(C) of the Individuals with
Disabilities EducationAct.
[Subpart 5--Graduate Fellowships to Prepare Faculty in High-Need Areas
at Colleges of Education
[SEC. 258. GRADUATE FELLOWSHIPS TO PREPARE FACULTY IN HIGH-NEED AREAS
AT COLLEGES OF EDUCATION.
[(a) Grants by Secretary.--The Secretary shall make grants to
eligible institutions to enable such institutions to make
graduate fellowship awards to qualified individuals in
accordance with the provisions of this section.
[(b) Eligible Institutions.--In this section, the term
``eligible institution'' means an institution of higher
education, or a consortium of such institutions, that offers a
program of postbaccalaureate study leading to a doctoral
degree.
[(c) Applications.--An eligible institution that desires a
grant under this section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require.
[(d) Types of Fellowships Supported.--
[(1) In general.--An eligible institution that
receives a grant under this section shall use the grant
funds to provide graduate fellowships to individuals
who are preparing for the professorate in order to
prepare individuals to become elementary school and
secondary school mathematics and science teachers,
special education teachers, and teachers who provide
instruction for limited English proficient students,
who meet the applicable State certificationand
licensure requirements, including any requirementsfor
certification obtained through alternative routesto
certification, or, with regard to special
educationteachers, the qualifications described in
section612(a)(14)(C) of the Individuals with
Disabilities EducationAct.
[(2) Types of study.--A graduate fellowship provided
under this section shall support an individual in
pursuing postbaccalaureate study, which leads to a
doctoral degree and may include a master's degree as
part of such study, related to teacher preparation and
pedagogy in one of the following areas:
[(A) Science, technology, engineering, or
mathematics, if the individual has completed a
master's degree in mathematics or science and
is pursuing a doctoral degree in mathematics,
science, or education.
[(B) Special education.
[(C) The instruction of limited English
proficient students, including
postbaccalaureate study in language instruction
educational programs.
[(e) Fellowship Terms and Conditions.--
[(1) Selection of fellows.--The Secretary shall
ensure that an eligible institution that receives a
grant under this section--
[(A) shall provide graduate fellowship awards
to individuals who plan to pursue a career in
instruction at an institution of higher
education that has a teacher preparation
program; and
[(B) may not provide a graduate fellowship to
an otherwise eligible individual--
[(i) during periods in which such
individual is enrolled at an
institution of higher education unless
such individual is maintaining
satisfactory academic progress in, and
devoting full-time study or research
to, the pursuit of the degree for which
the fellowship support was provided; or
[(ii) if the individual is engaged in
gainful employment, other than part-
time employment related to teaching,
research, or a similar activity
determined by the institution to be
consistent with and supportive of the
individuals's progress toward the
degree for which the fellowship support
was provided.
[(2) Amount of fellowship awards.--
[(A) In general.--An eligible institution
that receives a grant under this section shall
award stipends to individuals who are provided
graduate fellowships under this section.
[(B) Awards based on need.--A stipend
provided under this section shall be in an
amount equal to the level of support provided
by the National Science Foundation graduate
fellowships, except that such stipend shall be
adjusted as necessary so as not to exceed the
fellowship recipient's demonstrated need, as
determined by the institution of higher
education where the fellowship recipient is
enrolled.
[(3) Service requirement.--
[(A) Teaching required.--Each individual who
receives a graduate fellowship under this
section and earns a doctoral degree shall teach
for one year at an institution of higher
education that has a teacher preparation
program for each year of fellowship support
received under this section.
[(B) Institutional obligation.--Each eligible
institution that receives a grant under this
section shall provide an assurance to the
Secretary that the institution has inquired of
and determined the decision of each individual
who has received a graduate fellowship to,
within three years of receiving a doctoral
degree, begin employment at an institution of
higher education that has a teacher preparation
program, as required by this section.
[(C) Agreement required.--Prior to receiving
an initial graduate fellowship award, and upon
the annual renewal of the graduate fellowship
award, an individual selected to receive a
graduate fellowship under this section shall
sign an agreement with the Secretary agreeing
to pursue a career in instruction at an
institution of higher education that has a
teacher preparation program in accordance with
subparagraph (A).
[(D) Failure to comply.--If an individual who
receives a graduate fellowship award under this
section fails to comply with the agreement
signed pursuant to subparagraph (C), the sum of
the amounts of any graduate fellowship award
received by such recipient shall, upon a
determination of such a failure, 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 fellowship award,
in accordance with terms and conditions
specified by the Secretary in regulations under
this subpart.
[(E) Modified service requirement.--The
Secretary may waive or modify the service
requirement of this paragraph in accordance
with regulations promulgated by the Secretary
with respect to the criteria to determine the
circumstances under which compliance with such
service requirement is inequitable or
represents a substantial hardship. The
Secretary may waive the service requirement if
compliance by the fellowship recipient is
determined to be inequitable or represent a
substantial hardship--
[(i) because the individual is
permanently and totally disabled at the
time of the waiver request; or
[(ii) based on documentation
presented to the Secretary of
substantial economic or personal
hardship.
[(f) Institutional Support for Fellows.--An eligible
institution that receives a grant under this section may
reserve not more than ten percent of the grant amount for
academic and career transition support for graduate fellowship
recipients and for meeting the institutional obligation
described in subsection (e)(3)(B).
[(g) Restriction on Use of Funds.--An eligible institution
that receives a grant under this section may not use grant
funds for general operational overhead of the institution.
[PART C--GENERAL PROVISIONS
[SEC. 261. LIMITATIONS.
[(a) Federal Control Prohibited.--Nothing in this title shall
be construed to permit, allow, encourage, or authorize any
Federal control over any aspect of any private, religious, or
home school, whether or not a home school is treated as a
private school or home school under State law. This section
shall not be construed to prohibit private, religious, or home
schools from participation in programs or services under this
title.
[(b) No Change in State Control Encouraged or Required.--
Nothing in this title shall be construed to encourage or
require any change in a State's treatment of any private,
religious, or home school, whether or not a home school is
treated as a private school or home school under State law.
[(c) National System of Teacher Certification or Licensure
Prohibited.--Nothing in this title shall be construed to
permit, allow, encourage, or authorize the Secretary to
establish or support any national system of teacher
certification or licensure.
[(d) Rule of Construction.--Nothing in this title shall be
construed to alter or otherwise affect the rights, remedies,
and procedures afforded to the employees of local educational
agencies under Federal, State, or local laws (including
applicable regulations or court orders) or under the terms of
collective bargaining agreements, memoranda of understanding,
or other agreements between such employees and their
employers.]
TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS
SEC. 201. APPRENTICESHIP GRANT PROGRAM.
(a) Purpose.--The purpose of this section is to expand
student access to, and participation in, new industry-led earn-
and-learn programs leading to high-wage, high-skill, and high-
demand careers.
(b) Authorization of Apprenticeship Grant Program.--
(1) In general.--From the amounts authorized under
subsection (j), the Secretary shall award grants, on a
competitive basis, to eligible partnerships for the
purpose described in subsection (a).
(2) Duration.--The Secretary shall award grants under
this section for a period of--
(A) not less than 1 year; and
(B) not more than 4 years.
(3) Limitations.--
(A) Amount.--A grant awarded under this
section may not be in an amount greater than
$1,500,000.
(B) Number of awards.--An eligible
partnership or member of such partnership may
not be awarded more than one grant under this
section.
(C) Administration costs.--An eligible
partnership awarded a grant under this section
may not use more than 5 percent of the grant
funds to pay administrative costs associated
with activities funded by the grant.
(c) Matching Funds.--To receive a grant under this section,
an eligible partnership shall, through cash or in-kind
contributions, provide matching funds from non-Federal sources
in an amount equal to or greater than 50 percent of the amount
of such grant.
(d) Applications.--
(1) In general.--To receive a grant under this
section, an eligible partnership shall submit to the
Secretary at such a time as the Secretary may require,
an application that--
(A) identifies and designates the business or
institution of higher education responsible for
the administration and supervision of the earn-
and-learn program for which such grant funds
would be used;
(B) identifies the businesses and
institutions of higher education that comprise
the eligible partnership;
(C) identifies the source and amount of the
matching funds required under subsection (c);
(D) identifies the number of students who
will participate and complete the relevant
earn-and-learn program within 1 year of the
expiration of the grant;
(E) identifies the amount of time, not to
exceed 2 years, required for students to
complete the program;
(F) identifies the relevant recognized
postsecondary credential to be awarded to
students who complete the program;
(G) identifies the anticipated earnings of
students--
(i) 1 year after program completion;
and
(ii) 3 years after program
completion;
(H) describes the specific project for which
the application is submitted, including a
summary of the relevant classroom and paid
structured on-the-job training students will
receive;
(I) describes how the eligible partnership
will finance the program after the end of the
grant period;
(J) describes how the eligible partnership
will support the collection of information and
data for purposes of the program evaluation
required under subsection (h); and
(K) describes the alignment of the program
with State identified in-demand industry
sectors.
(2) Application review process.--
(A) Review panel.--Applications submitted
under paragraph (1) shall be read by a panel of
readers composed of individuals selected by the
Secretary. The Secretary shall assure that an
individual assigned under this paragraph does
not have a conflict of interest with respect to
the applications reviewed by such individual.
(B) Composition of review panel.--The panel
of reviewers selected by the Secretary under
subparagraph (A) shall be comprised as follows:
(i) A majority of the panel shall be
individuals who are representative of
businesses, which may include owners,
executives with optimum hiring
authority, or individuals representing
business organizations or business
trade associations.
(ii) The remainder of the panel shall
be equally divided between individuals
who are--
(I) representatives of
institutions of higher
education that offer programs
of two years or less; and
(II) representatives of State
workforce development boards
established under section 101
of the Workforce Innovation and
Opportunity Act (29 U.S.C.
3111).
(C) Review of Applications.--The Secretary
shall instruct the review panel selected by the
Secretary under paragraph (2)(A) to evaluate
applications using only the criteria specified
in paragraph (1) and make recommendations with
respect to--
(i) the quality of the applications;
(ii) whether a grant should be
awarded for a project under this title;
and
(iii) the amount and duration of such
grant.
(D) Notification.--Not later than June 30 of
each year, the Secretary shall notify each
eligible partnership submitting an application
under this section of--
(i) the scores given the applicant by
the panel pursuant to this section;
(ii) the recommendations of the panel
with respect to such application; and
(iii) the reasons for the decision of
the Secretary in awarding or refusing
to award a grant under this section;
and
(iv) modifications, if any, in the
recommendations of the panel made to
the Secretary.
(e) Award Basis.--The Secretary shall award grants under this
section on the following basis--
(1) the number of participants to be served by the
grant;
(2) the anticipated income of program participants in
relation to the regional median income;
(3) the alignment of the program with State-
identified in-demand industry sectors; and
(4) the recommendations of the readers under
subsection (d)(2)(C).
(f) Use of Funds.--Grant funds provided under this section
may be used for--
(1) the purchase of appropriate equipment,
technology, or instructional material, aligned with
business and industry needs, including machinery,
testing equipment, hardware and software;
(2) student books, supplies, and equipment required
for enrollment;
(3) the reimbursement of up to 50 percent of the
wages of a student participating in an earn-and-learn
program receiving a grant under this section;
(4) the development of industry-specific programing;
(5) supporting the transition of industry-based
professionals from an industry setting to an academic
setting;
(6) industry-recognized certification exams or other
assessments leading to a recognized postsecondary
credential associated with the earn-and-learn program;
and
(7) any fees associated with the certifications or
assessments described in paragraph (6).
(g) Technical Assistance.--The Secretary may provide
technical assistance to eligible partnerships awarded under
this section throughout the grant period for purposes of grant
management.
(h) Evaluation.--
(1) In general.--From the amounts made available
under subsection (j), the Secretary, acting through the
Director of the Institute for Education Sciences, shall
provide for the independent evaluation of the grant
program established under this section that includes
the following:
(A) An assessment of the effectiveness of the
grant program in expanding earn-and-learn
program opportunities offered by employers in
conjunction with institutions of higher
education.
(B) The number of students who participated
in programs assisted under this section.
(C) The percentage of students participating
in programs assisted under this section who
successfully completed the program in the time
described in subsection (d)(1)(E).
(D) The median earnings of program
participants--
(i) 1 year after exiting the program;
and
(ii) 3 years after exiting the
program.
(E) The percentage of students participating
in programs assisted under this section who
successfully receive a recognized postsecondary
credential.
(F) The number of students served by programs
receiving funding under this section--
(i) 2 years after the end of the
grant period;
(ii) 4 years after the end of the
grant period.
(2) Prohibition.--Notwithstanding any other provision
of law, the evaluation required by this subsection
shall not be subject to any review outside the
Institute for Education Sciences before such reports
are submitted to Congress and the Secretary.
(3) Publication.--The evaluation required by this
subsection shall be made publicly available on the
website of the Department.
(i) Definitions.--In this section:
(1) Earn-and-learn program.--The term ``earn-and-
learn program'' means an education program, including
an apprenticeship program, that provides students with
structured, sustained, and paid on-the-job training and
accompanying, for credit, classroom instruction that--
(A) is for a period of between 3 months and 2
years; and
(B) leads to, on completion of the program, a
recognized postsecondary credential.
(2) Eligible partnership.--The term ``eligible
partnership'' shall mean a consortium that includes--
(A) 1 or more businesses; and
(B) 1 or more institutions of higher
education.
(3) In-demand industry sector or occupation.--The
term ``in-demand industry sector or occupation'' has
the meaning given the term in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3102).
(4) On-the-job training.--The term ``on-the-job
training'' has the meaning given the term in section 3
of the Workforce Innovation and Opportunity Act (29
U.S.C. 3102).
(5) Recognized postsecondary credential.--The term
``recognized postsecondary credential'' has the meaning
given the term in section 3 of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102).
(j) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $183,204,000 for
fiscal year 2019 and each of the 5 succeeding fiscal years.
TITLE III--INSTITUTIONAL AID
* * * * * * *
Part A--Strengthening Minority-serving Institutions
SEC. 311. PROGRAM PURPOSE.
(a) General Authorization.--The Secretary shall carry out a
program, in accordance with this part, to improve the academic
quality, institutional management, and fiscal stability of
eligible institutions, in order to increase their self-
sufficiency and strengthen their capacity to make a substantial
contribution to the higher education resources of the Nation.
[(b) Grants Awarded; Special Consideration.--(1) From the
sums available for this part under section 399(a)(1), the
Secretary may award grants to any eligible institution with an
application approved under section 391 in order to assist such
an institution to plan, develop, or implement activities that
promise to strengthen the institution.
[(2) Special consideration shall be given to any eligible
institution--
[(A) which has endowment funds (other than any
endowment fund built under section 332 of this Act as
in effect on September 30, 1986, and under part B) the
market value of which, per full-time equivalent
student, is less than the average current market value
of the endowment funds, per full-time equivalent
student (other than any endowment fund built under
section 332 of this Act as in effect on September 30,
1986, and under part B) at similar institutions; or
[(B) which has expenditures per full-time equivalent
student for library materials which is less than the
average of the expenditures for library materials per
full-time equivalent student by other similarly
situated institutions.
[(3) Special consideration shall be given to applications
which propose, pursuant to the institution's plan, to engage
in--
[(A) faculty development;
[(B) funds and administrative management;
[(C) development and improvement of academic
programs;
[(D) acquisition of equipment for use in
strengthening funds management and academic programs;
[(E) joint use of facilities such as libraries and
laboratories; and
[(F) student services, including services that will
assist in the education of special populations.]
[(c)] (b) Authorized Activities.--Grants awarded under this
section shall be used for 1 or more of the following
activities:
(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
(2) Construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and
other instructional facilities, including the
integration of computer technology into institutional
facilities to create smart buildings.
(3) Support of faculty exchanges, faculty
development, and faculty fellowships to assist in
attaining advanced degrees in the field of instruction
of the faculty.
(4) Development and improvement of academic programs.
(5) Purchase of library books, periodicals, and other
educational materials, including telecommunications
program material.
[(6) Tutoring, counseling, and student service
programs designed to improve academic success,
including innovative, customized, instruction courses
designed to help retain students and move the students
rapidly into core courses and through program
completion, which may include remedial education and
English language instruction.]
(6) Tutoring, counseling, advising, and student
service programs designed to improve academic success,
including innovative and customized instructional
courses (which may include remedial education and
English language instruction) designed to help retain
students and move the students rapidly into core
courses and through program completion.
(7) Education or counseling services designed to
improve the financial literacy and economic literacy of
students or the students' families.
(8) Funds management, administrative management, and
[acquisition of equipment for use in strengthening
funds management] acquisition of technology, services,
and equipment for use in strengthening funds and
administrative management.
(9) Joint use of facilities, such as laboratories and
libraries.
(10) Establishing or improving a development office
to strengthen or improve contributions from alumni and
the private sector.
(11) Establishing or improving an endowment fund.
(12) [Creating or improving facilities for Internet
or other distance education technologies,] Innovative
learning models and creating or improving facilities
for Internet or other innovative technologies,
including purchase or rental of telecommunications
technology equipment or services.
(13) Establishing community outreach programs that
will encourage elementary school and secondary school
students to develop the academic skills and the
interest to pursue postsecondary education.
(14) The development, coordination, implementation,
or improvement of career and technical education
programs as defined in section 135 of the Carl D.
Perkins Career and Technical Education Act of 2006 (20
U.S.C. 2355).
(15) Alignment and integration of career and
technical education programs with programs of study
leading to a bachelor's degree, graduate degree, or
professional degree.
(16) Developing or expanding access to dual or
concurrent enrollment programs and early college high
school programs.
(17) Pay for success initiatives that improve time to
completion and increase graduation rates.
[(13)] (18) Other activities proposed in the
application submitted pursuant to subsection (b) and
section 391 that--
(A) contribute to carrying out the purposes
of the program assisted under this part; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
[(d)] (c) Endowment Fund.--
(1) In general.--An eligible institution may use not
more than 20 percent of the grant funds provided under
this part to establish or increase an endowment fund at
such institution.
(2) Matching requirement.--In order to be eligible to
use grant funds in accordance with paragraph (1), the
eligible institution shall provide matching funds from
non-Federal sources, in an amount equal to or greater
than the Federal funds used in accordance with
paragraph (1), for the establishment or increase of the
endowment fund.
(3) Comparability.--The provisions of part C,
regarding the establishment or increase of an endowment
fund, that the Secretary determines are not
inconsistent with this subsection, shall apply to funds
used under paragraph (1).
(4) Scholarship.--An institution that uses grant
funds provided under this part to establish or increase
an endowment fund may use the income from such
endowment fund to provide scholarships to students for
the purposes of attending such institution, subject to
the limitation in section 331(c)(3)(B)(i).
SEC. 312. DEFINITIONS; ELIGIBILITY.
(a) Educational and General Expenditures.--For the purpose of
this part, the term ``educational and general expenditures''
means the total amount expended by an institution of higher
education for instruction, research, public service, academic
support (including library expenditures), student services,
institutional support, scholarships and fellowships, operation
and maintenance expenditures for the physical plant, and any
mandatory [transfers which the institution] transfers that the
institution is required to pay by law.
(b) Eligible Institution.--For the purpose of this part, the
term ``eligible institution'' means--
(1) an institution of higher education--
(A) which has an enrollment of needy students
as required by subsection (d);
(B) except as provided in section 392(b), the
average educational and general expenditures of
which are low, per full-time equivalent
undergraduate student, in comparison with the
average educational and general expenditures
per full-time equivalent undergraduate student
of institutions that offer similar instruction;
(C) which is--
(i) legally authorized to provide,
and provides within the State, an
educational program for which such
institution awards a bachelor's degree;
(ii) a junior or community college;
or
(iii) the College of the Marshall
Islands, the College of Micronesia/
Federated States of Micronesia, and
Palau Community College;
(D) which is accredited by a nationally
recognized accrediting agency or association
determined by the Secretary to be reliable
authority as to the quality of training offered
or which is, according to such an agency or
association, making reasonable progress toward
accreditation;
[(F)] (E) located in a State (as defined in
section 103(20)(A)); and
[(E)] (F) which meets such other requirements
as the Secretary may prescribe; [and]
(2) any branch of any institution of higher education
described under paragraph (1) which by itself satisfies
the requirements contained in subparagraphs (A) and (B)
of such paragraph[.]; and
(3) except as provided in section 392(b), an
institution that has a completion rate of at least 25
percent that is calculated by counting a student as
completed if that student--
(A) graduates within 150 percent of the
normal time for completion; or
(B) enrolled into another program at an
institution for which the previous program
provided substantial preparation within 150
percent of the normal time for completion.
For purposes of the determination of whether an institution is
an eligible institution under this paragraph, the factor
described under paragraph (1)(A) shall be given twice the
weight of the factor described under paragraph (1)(B).
(c) Endowment Fund.--For the purpose of this part, the term
``endowment fund'' means a fund that--
(1) is established by State law, by an institution of
higher education, or by a foundation that is exempt
from Federal income taxation;
(2) is maintained for the purpose of generating
income for the support of the institution; and
(3) does not include real estate.
(d) Enrollment of Needy Students.--Except as provided in
section 318(b), for the purpose of this part, the term
``enrollment of needy students'' means an enrollment at an
institution of higher education or a junior or community
college which includes--
(1) at least 50 percent of the degree students so
enrolled who are receiving need-based assistance under
title IV of this Act in the second fiscal year
preceding the fiscal year for which the determination
is being made (other than loans for which an interest
subsidy is paid pursuant to section 428), or
(2) a substantial percentage of students receiving
Pell Grants in the second fiscal year preceding the
fiscal year for which determination is being made, in
comparison with the percentage of students receiving
Pell Grants at all such institutions in the second
fiscal year preceding the fiscal year for which the
determination is made, unless the requirement of this
paragraph is waived under section 392(a).
(e) Full-Time Equivalent Students.--For the purpose of this
part, the term ``full-time equivalent students'' means the sum
of the number of students enrolled full time at an institution,
plus the full-time equivalent of the number of students
enrolled part time (determined on the basis of the quotient of
the sum of the credit hours of all part-time students divided
by 12) at such institution.
(f) Junior or Community College.--For the purpose of this
part, the term ``junior or community college'' means an
institution of higher education--
(1) that admits as regular students persons who are
beyond the age of compulsory school attendance in the
State in which the institution is located and who have
the ability to benefit from the training offered by the
institution;
(2) that does not provide an educational program for
which it awards a bachelor's degree (or an equivalent
degree); and
(3) that--
(A) provides an educational program of not
less than 2 years that is acceptable for full
credit toward such a degree, or
(B) offers a 2-year program in engineering,
mathematics, or the physical or biological
sciences, designed to prepare a student to work
as a technician or at the semiprofessional
level in engineering, scientific, or other
technological fields requiring the
understanding and application of basic
engineering, scientific, or mathematical
principles of knowledge.
(g) Low-Income Individual.--For the purpose of this part, the
term ``low-income individual'' means an individual from a
family whose taxable income for the preceding year did not
exceed 150 percent of an amount equal to the poverty level
determined by using criteria of poverty established by the
Bureau of the Census.
(h) Historically Black College or University.--For the
purposes of this section, no historically black college or
university which is eligible for and receives funds under part
B of this title is eligible for or may receive funds under this
part.
SEC. 313. DURATION OF GRANT.
(a) Award Period.--The Secretary may award a grant to an
eligible institution under this part [for 5 years] for a period
of 5 years. Any funds awarded under this section that are not
expended or used for the purposes for which the funds were paid
within 10 years following the date on which the grant was
awarded, shall be repaid to the Treasury.
(b) Limitations.--In awarding grants under this part the
Secretary shall give priority to applicants who are not already
receiving a grant under this part, except that for the purpose
of this subsection a grant under subsection (c) and a grant
under section 394(a)(1) shall not be considered a grant under
this part.
(c) Planning Grants.--Notwithstanding subsection (a), the
Secretary may award a grant to an eligible institution under
this part for a period of one year for the purpose of
preparation of plans and applications for a grant under this
part.
[(d) Wait-Out-Period.--Each eligible institution that
received a grant under this part for a 5-year period shall not
be eligible to receive an additional grant under this part
until 2 years after the date on which the 5-year grant period
terminates.]
* * * * * * *
SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
UNIVERSITIES.
(a) Program Authorized.--The Secretary shall provide grants
and related assistance to Tribal Colleges and Universities to
enable such institutions to improve and expand their capacity
to serve Indian students.
(b) Definitions.--In this section:
(1) Indian.--The term ``Indian'' has the meaning
given the term in section 2 of the Tribally Controlled
Colleges and Universities Assistance Act of 1978.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 2 of the Tribally
Controlled Colleges and Universities Assistance Act of
1978.
(3) Tribal college or university.--The term ``Tribal
College or University'' means an institution that--
(A) qualifies for funding under the Tribally
Controlled Colleges and Universities Assistance
Act of 1978 (25 U.S.C. 1801 et seq.) or the
Navajo Community College Act (25 U.S.C. 640a
note); or
(B) is cited in section 532 of the Equity in
Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note).
(4) Institution of higher education.--The term
``institution of higher education'' means an
institution of higher education as defined in section
101(a), except that paragraph (2) of such section shall
not apply.
(c) Authorized Activities.--
(1) In general.--Grants awarded under this section
shall be used by Tribal Colleges or Universities to
assist such institutions to plan, develop, undertake,
and carry out activities to improve and expand such
institutions' capacity to serve Indian students.
(2) Examples of authorized activities.--The
activities described in paragraph (1) may include--
[(A) purchase, rental, or lease of scientific
or laboratory equipment for educational
purposes, including instructional and research
purposes;]
(A) the activities described in paragraphs
(1) through (12) and (14) through (17) of
section 311(b);
(B) construction, maintenance, renovation,
and improvement in classrooms, libraries,
laboratories, and other instructional
facilities, including purchase or rental of
telecommunications technology equipment or
services, and the acquisition of real property
adjacent to the campus of the institution on
which to construct such facilities;
(C) support of faculty exchanges, faculty
development, and faculty fellowships to assist
in attaining advanced degrees in the faculty's
field of instruction or in tribal governance or
tribal public policy;
(D) academic instruction in disciplines in
which Indians are underrepresented and
instruction in tribal governance or tribal
public policy;
[(E) purchase of library books, periodicals,
and other educational materials, including
telecommunications program material;
[(F) tutoring, counseling, and student
service programs designed to improve academic
success;
[(G) education or counseling services
designed to improve the financial literacy and
economic literacy of students or the students'
families;
[(H) funds management, administrative
management, and acquisition of equipment for
use in strengthening funds management;
[(I) joint use of facilities, such as
laboratories and libraries;
[(J) establishing or improving a development
office to strengthen or improve contributions
from alumni and the private sector;]
[(K)] (E) establishing or enhancing a program
of teacher education designed to qualify
students to teach in elementary schools or
secondary schools, with a particular emphasis
on teaching Indian children and youth, that
shall include, as part of such program,
preparation for teacher certification;
[(L)] (F) establishing community outreach
programs that encourage Indian elementary
school and secondary school students to develop
the academic skills and the interest to pursue
postsecondary education;
[(M) developing or improving facilities for
Internet use or other distance education
technologies; and]
[(N)] (G) other activities proposed in the
application submitted pursuant to subsection
(d) that--
(i) contribute to carrying out the
activities described in subparagraphs
(A) through [(M)] (F); and
(ii) are approved by the Secretary as
part of the review and acceptance of
such application.
[(3) Endowment fund.--
[(A) In general.--A Tribal College or
University may use not more than 20 percent of
the grant funds provided under this section to
establish or increase an endowment fund at the
institution.
[(B) Matching requirement.--In order to be
eligible to use grant funds in accordance with
subparagraph (A), the Tribal College or
University shall provide matching funds, in an
amount equal to the Federal funds used in
accordance with subparagraph (A), for the
establishment or increase of the endowment
fund.
[(C) Comparability.--The provisions of part C
regarding the establishment or increase of an
endowment fund, that the Secretary determines
are not inconsistent with this paragraph, shall
apply to funds used under subparagraph (A).]
(3) Endowment fund.--A Tribal College or University
seeking to establish or increase an endowment fund
shall abide by the requirements in section 311(c).
(d) Application, Plan, and Allocation.--
(1) Institutional eligibility.--To be eligible to
receive assistance under this section, a Tribal College
or University shall be an eligible institution under
section 312(b).
[(2) Application.--
[(A) In general.--A Tribal College or
University desiring to receive assistance under
this section shall submit an application to the
Secretary at such time, in such manner, and
containing such information as the Secretary
may reasonably require.
[(B) Streamlined process.--The Secretary
shall establish application requirements in
such a manner as to simplify and streamline the
process for applying for grants under this
section.]
(2) Application.--A Tribal College or University
desiring to receive assistance under this section shall
submit an application to the Secretary pursuant to
section 391.
(3) Awards and allocations to institutions.--
(A) Construction grants.--
(i) In general.--Of the amount
appropriated to carry out this section
for any fiscal year, the Secretary may
reserve 30 percent for the purpose of
awarding one-year grants of not less
than $1,000,000 to address
construction, maintenance, and
renovation needs at eligible
institutions.
(ii) Preference.--In providing grants
under clause (i) for any fiscal year,
the Secretary shall give preference to
eligible institutions that have not
received an award under this section
for a previous fiscal year.
(B) Allotment of remaining funds.--
(i) In general.--Except as provided
in clause (ii), the Secretary shall
distribute the remaining funds
appropriated for any fiscal year to
each eligible institution as follows:
(I) 60 percent of the
remaining appropriated funds
shall be distributed among the
eligible Tribal Colleges and
Universities on a pro rata
basis, based on the respective
Indian student counts (as
defined in section 2(a) of the
Tribally Controlled Colleges
and Universities Assistance Act
of 1978 (25 U.S.C. 1801(a)) of
the Tribal Colleges and
Universities.
(II) The remaining 40 percent
shall be distributed in equal
shares to the eligible Tribal
Colleges and Universities.
(ii) Minimum grant.--The amount
distributed to a Tribal College or
University under clause (i) shall not
be less than $500,000.
(4) Special rules.--
(A) Concurrent funding.--No Tribal College or
University that receives funds under this
section shall concurrently receive funds under
any other provision of this part, part B, or
[part A of] title V.
(B) Exemption.--Section [313(d)] 312(b)(3)
shall not apply to institutions that are
eligible to receive funds under this section.
SEC. 317. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.
(a) Program Authorized.--The Secretary shall provide grants
and related assistance to Alaska Native-serving institutions
and Native Hawaiian-serving institutions to enable such
institutions to improve and expand their capacity to serve
Alaska Natives and Native Hawaiians.
(b) Definitions.--For the purpose of this section--
(1) the term ``Alaska Native'' has the meaning given
the term in section 6306 of the Elementary and
Secondary Education Act of 1965;
(2) the term ``Alaska Native-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 20 percent Alaska Native students;
(3) the term ``Native Hawaiian'' has the meaning
given the term in section 6207 of the Elementary and
Secondary Education Act of 1965; and
(4) the term ``Native Hawaiian-serving institution''
means an institution of higher education which--
(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 Native Hawaiian students.
(c) Authorized Activities.--
(1) Types of activities authorized.--Grants awarded
under this section shall be used by Alaska Native-
serving institutions and Native Hawaiian-serving
institutions to assist such institutions to plan,
develop, undertake, and carry out activities to improve
and expand such institutions' capacity to serve Alaska
Natives or Native Hawaiians.
[(2) Examples of authorized activities.--Such
programs may include--
[(A) purchase, rental, or lease of scientific
or laboratory equipment for educational
purposes, including instructional and research
purposes;
[(B) renovation and improvement in classroom,
library, laboratory, and other instructional
facilities;
[(C) support of faculty exchanges, and
faculty development and faculty fellowships to
assist in attaining advanced degrees in the
faculty's field of instruction;
[(D) curriculum development and academic
instruction;
[(E) purchase of library books, periodicals,
microfilm, and other educational materials;
[(F) funds and administrative management, and
acquisition of equipment for use in
strengthening funds management;
[(G) joint use of facilities such as
laboratories and libraries;
[(H) academic tutoring and counseling
programs and student support services; and
[(I) education or counseling services
designed to improve the financial literacy and
economic literacy of students or the students'
families.]
(2) Examples of authorized activities.--Such programs
may include--
(A) the activities described in paragraphs
(1) through (17) of section 311(b); and
(B) other activities proposed in the
application submitted pursuant to subsection
(d) that--
(i) contribute to carrying out the
purpose of this section; and
(ii) are approved by the Secretary as
part of the review and approval of an
application submitted under subsection
(d).
(3) Endowment fund.--An Alaska Native-serving
institution and Native Hawaiian-serving institution
seeking to establish or increase an endowment fund
shall abide by the requirements in section 311(c).
(d) Application Process.--
[(1) Institutional eligibility.--Each Alaska Native-
serving institution and Native Hawaiian-serving
institution desiring to receive assistance under this
section shall submit to the Secretary such enrollment
data as may be necessary to demonstrate that the
institution is an Alaska Native-serving institution or
a Native Hawaiian-serving institution as defined in
subsection (b), along with such other information and
data as the Secretary may by regulation require.]
[(2)] (1) Applications.--Any institution which is
determined by the Secretary to be an Alaska Native-
serving institution or a Native Hawaiian-serving
institution may submit an application for assistance
under this section to the Secretary pursuant to section
391. [The Secretary shall, to the extent possible,
prescribe a simplified and streamlined format for such
applications that takes into account the limited number
of institutions that are eligible for assistance under
this section. Such application shall include--]
(A) a 5-year plan for improving the
assistance provided by the Alaska Native-
serving institution or the Native Hawaiian-
serving institution to Alaska Native or Native
Hawaiian students; and
(B) such other information and assurance as
the Secretary may require.
[(3)] (2) Special rules.--
(A) Eligibility.--No Alaskan Native-serving
institution or Native Hawaiian-serving
institution that receives funds under this
section shall concurrently receive funds under
other provisions of [this part or part B.] this
part, part B, or title V.
[(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.]
[(C)] (B) Distribution.--In awarding grants
under this section, the Secretary shall, to the
extent possible and consistent with the
competitive process under which such grants are
awarded, ensure maximum and equitable
distribution among all eligible institutions.
SEC. 318. PREDOMINANTLY BLACK INSTITUTIONS.
(a) Purpose.--It is the purpose of this section to assist
Predominantly Black Institutions in expanding educational
opportunity through a program of Federal assistance.
(b) Definitions.--In this section:
(1) Eligible institution.--The term ``eligible
institution'' means an institution of higher education
that--
(A) has an enrollment of needy undergraduate
students;
(B) has an average educational and general
expenditure that 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 that
offer similar instruction, except that the
Secretary may apply the waiver requirements
described in section 392(b) to this
subparagraph in the same manner as the
Secretary applies the waiver requirements to
section 312(b)(1)(B);
(C) has an enrollment of undergraduate
students that is not less than 40 percent Black
American students;
(D) is legally authorized to provide, and
provides, within the State an educational
program for which the institution of higher
education awards a baccalaureate degree or, in
the case of a junior or community college, an
associate'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--
(i) part B;
(ii) [part A of] title V; or
(iii) an annual authorization of
appropriations under the Act of March
2, 1867 (14 Stat. 438; 20 U.S.C.
123)[.]; and
(G) is an eligible institution under section
312(b).
(2) Enrollment of needy students.--The term
``enrollment of needy students'' means the enrollment
at an eligible institution 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;
(C) attended a public or nonprofit private
secondary school that--
(i) is in the school district of a
local educational 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
(ii) for the purpose of this
paragraph and for such year of
attendance, was determined by the
Secretary (pursuant 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 meeting a measure of poverty
under section 1113(a)(5) of such Act
exceeds 30 percent of the total
enrollment of such school; or
(D) are first-generation college students and
a majority of such first-generation college
students are low-income individuals.
(3) First-generation college student.--The term
``first-generation college student'' has the meaning
given the term in section 402A(h).
(4) Low-income individual.--The term ``low-income
individual'' has the meaning given such term in section
402A(h).
(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 program's
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) Predominantly black institution.--The term
``Predominantly Black Institution'' means an
institution of higher education, as defined in section
101(a)--
(A) that is an eligible institution with not
less than 1,000 undergraduate students;
(B) at which not less than 50 percent of the
undergraduate students enrolled at the eligible
institution are low-income individuals or
first-generation college students; and
(C) at which not less than 50 percent of the
undergraduate students are enrolled in an
educational program leading to a bachelor's or
associate's degree that the eligible
institution is licensed to award by the State
in which the eligible institution is located.
[(7) State.--The term ``State'' means each of the 50
States and the District of Columbia.]
(c) Grant Authority.--
(1) In general.--The Secretary is authorized to award
grants, from allotments under subsection (e), to
Predominantly Black Institutions to enable the
Predominantly Black Institutions to carry out the
authorized activities described in subsection (d).
(2) Priority.--In awarding grants under this section
the Secretary shall give priority to Predominantly
Black Institutions with large numbers or percentages of
students described in subsections (b)(1)(A) or
(b)(1)(C). The level of priority given to Predominantly
Black Institutions with large numbers or percentages of
students described in subsection (b)(1)(A) shall be
twice the level of priority given to Predominantly
Black Institutions with large numbers or percentages of
students described in subsection (b)(1)(C).
(d) Authorized Activities.--
(1) Required activities.--Grant funds provided under
this section shall be used--
(A) to assist the Predominantly Black
Institution to plan, develop, undertake, and
implement programs to enhance the institution's
capacity to serve more low- and middle-income
Black American students;
(B) to expand higher education opportunities
for students eligible to participate in
programs under title IV by encouraging college
preparation and student persistence in
secondary school and postsecondary education;
and
(C) to strengthen the financial ability of
the Predominantly Black Institution to serve
the academic needs of the students described in
subparagraphs (A) and (B).
(2) Additional activities.--Grant funds provided
under this section shall be used for one or more of the
following activities:
(A) The activities described in paragraphs
(1) [through (12) of section 311(c)] through
(17) of section 311(b).
(B) Academic instruction in disciplines in
which Black Americans are underrepresented.
(C) Establishing or enhancing a program of
teacher education designed to qualify students
to teach in a public elementary school or
secondary school in the State that shall
include, as part of such program, preparation
for teacher certification or licensure.
[(D) Establishing community outreach programs
that will encourage elementary school and
secondary school students to develop the
academic skills and the interest to pursue
postsecondary education.]
[(E)] (D) Other activities proposed in the
application submitted pursuant to subsection
(f) that--
(i) contribute to carrying out the
purpose of this section; and
(ii) are approved by the Secretary as
part of the review and approval of an
application submitted under subsection
(f).
[(3) Endowment fund.--
[(A) In general.--A Predominantly Black
Institution may use not more than 20 percent of
the grant funds provided under this section to
establish or increase an endowment fund at the
institution.
[(B) Matching requirement.--In order to be
eligible to use grant funds in accordance with
subparagraph (A), a Predominantly Black
Institution shall provide matching funds from
non-Federal sources, in an amount equal to or
greater than the Federal funds used in
accordance with subparagraph (A), for the
establishment or increase of the endowment
fund.
[(C) Comparability.--The provisions of part
C, regarding the establishment or increase of
an endowment fund, that the Secretary
determines are not inconsistent with this
subsection, shall apply to funds used under
subparagraph (A).]
(3) Endowment fund.--A Predominantly Black
Institution seeking to establish or increase an
endowment fund shall abide by the requirements in
section 311(c).
(4) Limitation.--Not more than 50 percent of the
grant funds provided to a Predominantly Black
Institution under this section may be available for the
purpose of constructing or maintaining a classroom,
library, laboratory, or other instructional facility.
(e) Allotments to Predominantly Black Institutions.--
(1) Federal pell grant basis.--From the amounts
appropriated to carry out this section for any fiscal
year, the Secretary shall allot to each Predominantly
Black Institution having an application approved under
subsection (f) a sum that bears the same ratio to one-
half of that amount as the number of Federal Pell Grant
recipients in attendance at such institution at the end
of the academic year preceding the beginning of that
fiscal year, bears to the total number of Federal Pell
Grant recipients at all such institutions at the end of
such academic year.
(2) Graduates basis.--From the amounts appropriated
to carry out this section for any fiscal year, the
Secretary shall allot to each Predominantly Black
Institution having an application approved under
subsection (f) a sum that bears the same ratio to one-
fourth of that amount as the number of graduates for
such academic year at such institution, bears to the
total number of graduates for such academic year at all
such institutions.
(3) Graduates seeking a higher degree basis.--From
the amounts appropriated to carry out this section for
any fiscal year, the Secretary shall allot to each
Predominantly Black Institution having an application
approved under subsection (f) a sum that bears the same
ratio to one-fourth of that amount as the percentage of
graduates from such institution who are admitted to and
in attendance at, not later than two years after
graduation with an associate's degree or a
baccalaureate degree, a baccalaureate degree-granting
institution or a graduate or professional school in a
degree program in disciplines in which Black American
students are underrepresented, bears to the percentage
of such graduates for all such institutions.
(4) Minimum allotment.--
(A) In general.--Notwithstanding paragraphs
(1), (2), and (3), the amount allotted to each
Predominantly Black Institution under this
section may not be less than $250,000.
(B) Insufficient amount.--If the amounts
appropriated to carry out this section for a
fiscal year are not sufficient to pay the
minimum allotment provided under subparagraph
(A) for the fiscal year, then the amount of
such minimum allotment shall be ratably
reduced. If additional sums become available
for such fiscal year, such reduced allotment
shall be increased on the same basis as the
allotment was reduced until the amount allotted
equals the minimum allotment required under
subparagraph (A).
(5) Reallotment.--The amount of a Predominantly Black
Institution's allotment under paragraph (1), (2), (3),
or (4) for any fiscal year that the Secretary
determines will not be needed for such institution for
the period for which such allotment is available, shall
be available for reallotment to other Predominantly
Black Institutions in proportion to the original
allotments to such other institutions under this
section for such fiscal year. The Secretary shall
reallot such amounts from time to time, on such date
and during such period as the Secretary determines
appropriate.
(f) Applications.--Each Predominantly Black Institution
desiring a grant under this section shall submit an application
to the Secretary [at such time, in such manner, and containing
or accompanied by such information as the Secretary may
reasonably require.] pursuant to section 391.
[(g) Application Review Process.--Section 393 shall not apply
to applications under this section.
[(h) Duration and Carryover.--Any grant funds paid to a
Predominantly Black Institution under this section that are not
expended or used for the purposes for which the funds were paid
within ten years following the date on which the grant was
awarded, shall be repaid to the Treasury.]
[(i)] (g) Special Rule on Eligibility.--No Predominantly
Black Institution that receives funds under this section shall
concurrently receive funds under any other provision of this
part, part B, or [part A of] title V.
SEC. 319. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.
(a) Program Authorized.--The Secretary shall provide grants
and related assistance to Native American-serving, nontribal
institutions to enable such institutions to improve and expand
their capacity to serve Native Americans and low-income
individuals.
(b) Definitions.--In this section:
(1) Native american.--The term ``Native American''
means an individual who is of a tribe, people, or
culture that is indigenous to the United States.
(2) Native american-serving, nontribal institution.--
The term ``Native American-serving, nontribal
institution'' means an institution of higher education,
as defined in section 101(a), that, at the time of
application--
(A) is an eligible institution under section
312(b);
(B) has an enrollment of undergraduate
students that is not less than 10 percent
Native American students; and
(C) is not a Tribal College or University (as
defined in section 316).
(c) Authorized Activities.--
(1) Types of activities authorized.--Grants awarded
under this section shall be used by Native American-
serving, nontribal institutions to assist such
institutions to plan, develop, undertake, and carry out
activities to improve and expand such institutions'
capacity to serve Native Americans and low-income
individuals.
[(2) Examples of authorized activities.--Such
programs may include--
[(A) the purchase, rental, or lease of
scientific or laboratory equipment for
educational purposes, including instructional
and research purposes;
[(B) renovation and improvement in classroom,
library, laboratory, and other instructional
facilities;
[(C) support of faculty exchanges, and
faculty development and faculty fellowships to
assist faculty in attaining advanced degrees in
the faculty's field of instruction;
[(D) curriculum development and academic
instruction;
[(E) the purchase of library books,
periodicals, microfilm, and other educational
materials;
[(F) funds and administrative management, and
acquisition of equipment for use in
strengthening funds management;
[(G) the joint use of facilities such as
laboratories and libraries;
[(H) academic tutoring and counseling
programs and student support services; and
[(I) education or counseling services
designed to improve the financial and economic
literacy of students or the students'
families.]
(2) Examples of authorized activities.--Such programs
may include--
(A) the activities described in paragraphs
(1) through (17) of section 311(b); and
(B) other activities proposed in the
application submitted pursuant to subsection
(d) that--
(i) contribute to carrying out the
purpose of this section; and
(ii) are approved by the Secretary as
part of the review and approval of an
application submitted under subsection
(d).
(3) Endowment fund.--A Native American-serving,
nontribal institution seeking to establish or increase
an endowment fund shall abide by the requirements in
section 311(c).
(d) Application Process.--
[(1) Institutional eligibility.--A Native American-
serving, nontribal institution desiring to receive
assistance under this section shall submit to the
Secretary such enrollment data as may be necessary to
demonstrate that the institution is a Native American-
serving, nontribal institution, along with such other
information and data as the Secretary may reasonably
require.]
(1) Application.--A Native American-serving,
nontribal institution desiring to receive assistance
under this section shall submit an application to the
Secretary pursuant to section 391.
[(2) Applications.--
[(A) Authority to submit applications.--Any
institution that is determined by the Secretary
to be a Native American-serving, nontribal
institution may submit an application for
assistance under this section to the Secretary.
[(B) Simplified and streamlined format.--The
Secretary shall, to the extent possible,
continue to prescribe a simplified and
streamlined format for applications under this
section that takes into account the limited
number of institutions that are eligible for
assistance under this section.
[(C) Content.--An application submitted under
subparagraph (A) shall include--
[(i) a five-year plan for improving
the assistance provided by the Native
American-serving, nontribal institution
to Native Americans and low-income
individuals; and
[(ii) such other information and
assurances as the Secretary may
reasonably require.]
[(3)] (2) Special rules.--
(A) Eligibility.--No Native American-serving,
nontribal institution that receives funds under
this section shall concurrently receive funds
under any other provision of this part, part B,
or [part A of] title V.
[(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.]
[(C)] (B) Distribution.--In awarding grants
under this section, the Secretary shall, to the
extent possible and consistent with the
competitive process under which such grants are
awarded, ensure maximum and equitable
distribution among all eligible institutions.
[(D)] (C) Minimum grant amount.--The minimum
amount of a grant under this section shall be
$200,000.
SEC. 320. ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC ISLANDER-SERVING
INSTITUTIONS.
(a) Program Authorized.--The Secretary shall provide grants
and related assistance to Asian American and Native American
Pacific Islander-serving institutions to enable such
institutions to improve and expand their capacity to serve
Asian Americans and Native American Pacific Islanders and low-
income individuals.
(b) Definitions.--In this section:
(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 Presenting 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
not less than 10 percent students who are Asian
American or Native American Pacific Islander.
(3) 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.
(c) Authorized Activities.--
(1) Types of activities authorized.--Grants awarded
under this section shall be used by Asian American and
Native American Pacific Islander-serving institutions
to assist such institutions to plan, develop,
undertake, and carry out activities to improve and
expand such institutions' capacity to serve Asian
Americans and Native American Pacific Islanders and
low-income individuals.
[(2) Examples of authorized activities.--Such
programs may include--
[(A) purchase, rental, or lease of scientific
or laboratory equipment for educational
purposes, including instructional and research
purposes;
[(B) renovation and improvement in classroom,
library, laboratory, and other instructional
facilities;
[(C) support of faculty exchanges, and
faculty development and faculty fellowships to
assist in attaining advanced degrees in the
faculty's field of instruction;
[(D) curriculum development and academic
instruction;
[(E) purchase of library books, periodicals,
microfilm, and other educational materials;
[(F) funds and administrative management, and
acquisition of equipment for use in
strengthening funds management;
[(G) joint use of facilities such as
laboratories and libraries;
[(H) academic tutoring and counseling
programs and student support services;
[(I) establishing community outreach programs
that will encourage elementary school and
secondary school students to develop the
academic skills and the interest to pursue
postsecondary education;
[(J) establishing or improving an endowment
fund;
[(K) academic instruction in disciplines in
which Asian Americans and Native American
Pacific Islanders are underrepresented;
[(L) conducting research and data collection
for Asian American and Native American Pacific
Islander populations and subpopulations;
[(M) establishing partnerships with
community-based organizations serving Asian
Americans and Native American Pacific
Islanders; and
[(N) education or counseling services
designed to improve the financial and economic
literacy of students or the students'
families.]
(2) Examples of authorized activities.--Such programs
may include--
(A) the activities described in paragraphs
(1) through (17) of section 311(b);
(B) academic instruction in disciplines in
which Asian Americans and Native American
Pacific Islanders are underrepresented;
(C) conducting research and data collection
for Asian American and Native American Pacific
Islander populations and subpopulations;
(D) establishing partnerships with community-
based organizations serving Asian Americans and
Native American Pacific Islanders; and
(E) other activities proposed in the
application submitted pursuant to subsection
(d) that--
(i) contribute to carrying out the
purpose of this section; and
(ii) are approved by the Secretary as
part of the review and approval of an
application submitted under subsection
(d).
(3) Endowment fund.--An Asian American and Native
American Pacific Islander-serving institution seeking
to establish or increase an endowment fund shall abide
by the requirements in section 311(c).
(d) Application Process.--
[(1) Institutional eligibility.--Each Asian American
and Native American Pacific Islander-serving
institution desiring to receive assistance under this
section shall submit to the Secretary such enrollment
data as may be necessary to demonstrate that the
institution is an Asian American and Native American
Pacific Islander-serving institution as defined in
subsection (b), along with such other information and
data as the Secretary may reasonably require.]
(1) Application.--Each Asian American and Native
American Pacific Islander-serving institution desiring
to receive assistance under this section shall submit
an application to the Secretary pursuant to section
391.
[(2) Applications.--Any institution that is
determined by the Secretary to be an Asian American and
Native American Pacific Islander-serving institution
may submit an application for assistance under this
section to the Secretary. Such application shall
include--
[(A) a five-year plan for improving the
assistance provided by the Asian American and
Native American Pacific Islander-serving
institution to Asian American and Native
American Pacific Islander students and low-
income individuals; and
[(B) such other information and assurances as
the Secretary may reasonably require.]
[(3)] (2) Special rules.--
(A) Eligibility.--No Asian American and
Native American Pacific Islander-serving
institution that receives funds under this
section shall concurrently receive funds under
any other provision of this part, part B, or
title V.
[(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.]
[(C)] (B) Distribution.--In awarding grants
under this section, the Secretary shall--
(i) to the extent possible and
consistent with the competitive process
under which such grants are awarded,
ensure maximum and equitable
distribution among all eligible
institutions; and
(ii) give priority consideration to
institutions for which not less than 10
percent of such institution's Asian
American and Native American Pacific
Islander students are low-income
individuals.
Part B--Strengthening Historically Black Colleges and Universities
* * * * * * *
SEC. 323. GRANTS TO INSTITUTIONS.
[(a) General Authorization; Uses of Funds.--From amounts
available under section 399(a)(2) for any fiscal year, the
Secretary shall make grants (under section 324) to institutions
which have applications approved by the Secretary (under
section 325) for any of the following uses:
[(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
[(2) Construction, maintenance, renovation, and
improvement in classroom, library, laboratory, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services.
[(3) Support of faculty exchanges, and faculty
development and faculty fellowships to assist in
attaining advanced degrees in their field of
instruction.
[(4) Academic instruction in disciplines in which
Black Americans are underrepresented.
[(5) Purchase of library books, periodicals,
microfilm, and other educational materials, including
telecommunications program materials.
[(6) Tutoring, counseling, and student service
programs designed to improve academic success.
[(7) Funds and administrative management, and
acquisition of equipment for use in strengthening funds
management.
[(8) Joint use of facilities, such as laboratories
and libraries.
[(9) Establishing or improving a development office
to strengthen or improve contributions from alumni and
the private sector.
[(10) Establishing or enhancing a program of teacher
education designed to qualify students to teach in a
public elementary or secondary school in the State that
shall include, as part of such program, preparation for
teacher certification.
[(11) Establishing community outreach programs which
will encourage elementary and secondary students to
develop the academic skills and the interest to pursue
postsecondary education.
[(12) Acquisition of real property in connection with
the construction, renovation, or addition to or
improvement of campus facilities.
[(13) Education or financial information designed to
improve the financial literacy and economic literacy of
students or the students' families, especially with
regard to student indebtedness and student assistance
programs under title IV.
[(14) Services necessary for the implementation of
projects or activities that are described in the grant
application and that are approved, in advance, by the
Secretary, except that not more than two percent of the
grant amount may be used for this purpose.
[(15) Other activities proposed in the application
submitted pursuant to section 325 that--
[(A) contribute to carrying out the purposes
of this part; and
[(B) are approved by the Secretary as part of
the review and acceptance of such application.
[(b) Endowment Fund.--
[(1) In general.--An institution may use not more
than 20 percent of the grant funds provided under this
part to establish or increase an endowment fund at the
institution.
[(2) Matching requirement.--In order to be eligible
to use grant funds in accordance with paragraph (1),
the eligible institution shall provide matching funds
from non-Federal sources, in an amount equal to or
greater than the Federal funds used in accordance with
paragraph (1), for the establishment or increase of the
endowment fund.
[(3) Comparability.--The provisions of part C
regarding the establishment or increase of an endowment
fund, that the Secretary determines are not
inconsistent with this subsection, shall apply to funds
used under paragraph (1).]
(a) Authorized Activities.--From amounts available under
section 399(a)(2) for any fiscal year, the Secretary shall make
grants (under section 324) to institutions which have
applications approved by the Secretary (under section 325) for
any of the following uses:
(1) The activities described in paragraphs (1)
through (17) of section 311(b).
(2) Academic instruction in disciplines in which
Black Americans are underrepresented.
(3) Initiatives to improve the educational outcomes
of African American males.
(4) Establishing or enhancing a program of teacher
education designed to qualify students to teach in a
public elementary or secondary school in the State that
shall include, as part of such program, preparation for
teacher certification.
(5) Acquisition of real property in connection with
the construction, renovation, or addition to or
improvement of campus facilities.
(6) Services necessary for the implementation of
projects or activities that are described in the grant
application and that are approved, in advance, by the
Secretary, except that not more than two percent of the
grant amount may be used for this purpose.
(7) Other activities proposed in the application
submitted pursuant to section 325 that--
(A) contribute to carrying out the purposes
of this part; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
(b) Endowment Fund.--An institution seeking to establish or
increase an endowment shall abide by the requirements in
section 311(c).
(c) Limitations.--(1) No grant may be made under this Act for
any educational program, activity, or service related to
sectarian instruction or religious worship, or provided by a
school or department of divinity. For the purpose of this
subsection, the term ``school or department of divinity'' means
an institution whose program is specifically for the education
of students to prepare them to become ministers of religion or
to enter upon some other religious vocation, or to prepare them
to teach theological subjects.
(2) Not more than 50 percent of the allotment of any
institution may be available for the purpose of constructing or
maintaining a classroom, library, laboratory, or other
instructional facility.
* * * * * * *
SEC. 325. APPLICATIONS.
(a) Contents.--No part B institution shall be entitled to its
allotment of Federal funds for any grant under section 324 for
any period unless that institution meets the requirements of
subparagraphs [(C), (D), and (E)] (C) through (F) of section
312(b)(1) and submits an application to the Secretary at such
time, in such manner, and containing or accompanied by such
information, as the Secretary may reasonably require. Each such
application shall--
(1) provide that the payments under this Act will be
used for the purposes set forth in section 323; and
(2) provide for making an annual report to the
Secretary and provide for--
(A) conducting, except as provided in
subparagraph (B), a financial and compliance
audit of an eligible institution, with regard
to any funds obtained by it under this title at
least once every 2 years and covering the
period since the most recent audit, conducted
by a qualified, independent organization or
person in accordance with standards established
by the Comptroller General for the audit of
governmental organizations, programs, and
functions, and as prescribed in regulations of
the Secretary, the results of which shall be
submitted to the Secretary; or
(B) with regard to an eligible institution
which is audited under chapter 75 of title 31,
United States Code, deeming such audit to
satisfy the requirements of subparagraph (A)
for the period covered by such audit.
(b) Approval.--The Secretary shall approve any application
which meets the requirements of subsection (a) and shall not
disapprove any application submitted under this part, or any
modification thereof, without first affording such institution
reasonable notice and opportunity for a hearing.
(c) Goals for Financial Management and Academic Programs.--
Any application for a grant under this part shall describe
measurable goals for the institution's financial management and
academic programs and include a plan of how the applicant
intends to achieve those goals.
SEC. 326. PROFESSIONAL OR GRADUATE INSTITUTIONS.
(a) General Authorization.--(1) Subject to the availability
of funds appropriated to carry out this section, the Secretary
shall award program grants to each of the postgraduate
institutions listed in subsection (e) that is determined by the
Secretary to be making a substantial contribution to the legal,
medical, dental, veterinary, or other graduate education
opportunities in mathematics, engineering, or the physical or
natural sciences for Black Americans.
(2) No grant in excess of $1,000,000 may be made under this
section unless the postgraduate institution provides assurances
that 50 percent of the cost of the purposes for which the grant
is made will be paid from non-Federal sources, except that no
institution shall be required to match any portion of the first
$1,000,000 of the institution's award from the Secretary. After
funds are made available to each eligible institution under the
funding rules described in subsection (f), the Secretary shall
distribute, on a pro rata basis, any amounts which were not so
made available (by reason of the failure of an institution to
comply with the matching requirements of this paragraph) among
the institutions that have complied with such matching
requirement.
[(b) Duration.--Grants shall be made for a period not to
exceed 5 years. Any funds awarded for such five-year grant
period that are obligated during such five-year period may be
expended during the 10-year period beginning on the first day
of such five-year period.
[(c) Uses of Funds.--A grant under this section may be used
for--
[(1) purchase, rental or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes;
[(2) construction, maintenance, renovation, and
improvement in classroom, library, laboratory, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services;
[(3) purchase of library books, periodicals,
technical and other scientific journals, microfilm,
microfiche, and other educational materials, including
telecommunications program materials;
[(4) scholarships, fellowships, and other financial
assistance for needy graduate and professional students
to permit the enrollment of the students in and
completion of the doctoral degree in medicine,
dentistry, pharmacy, veterinary medicine, law, and the
doctorate degree in the physical or natural sciences,
engineering, mathematics, or other scientific
disciplines in which African Americans are
underrepresented;
[(5) establishing or improving a development office
to strengthen and increase contributions from alumni
and the private sector;
[(6) assisting in the establishment or maintenance of
an institutional endowment to facilitate financial
independence pursuant to section 331;
[(7) funds and administrative management, and the
acquisition of equipment, including software, for use
in strengthening funds management and management
information systems;
[(8) acquisition of real property that is adjacent to
the campus in connection with the construction,
renovation, or addition to or improvement of campus
facilities;
[(9) education or financial information designed to
improve the financial literacy and economic literacy of
students or the students' families, especially with
regard to student indebtedness and student assistance
programs under title IV;
[(10) services necessary for the implementation of
projects or activities that are described in the grant
application and that are approved, in advance, by the
Secretary, except that not more than two percent of the
grant amount may be used for this purpose;
[(11) tutoring, counseling, and student service
programs designed to improve academic success; and
[(12) other activities proposed in the application
submitted under subsection (d) that--
[(A) contribute to carrying out the purposes
of this part; and
[(B) are approved by the Secretary as part of
the review and acceptance of such application.]
(b) Duration.--The Secretary may award a grant to an eligible
institution under this part for a period of 5 years. Any funds
awarded under this section that are not expended or used for
the purposes for which the funds were paid within 10 years
following the date on which the grant was awarded, shall be
repaid to the Treasury.
(c) Authorized Activities.--A grant under this section may be
used for--
(1) the activities described in paragraphs (1)
through (12), (14) through (15), and (17) of section
311(b);
(2) scholarships, fellowships, and other financial
assistance for needy graduate and professional students
to permit the enrollment of the students in and
completion of the doctoral degree in medicine,
dentistry, pharmacy, veterinary medicine, law, and the
doctorate degree in the physical or natural sciences,
engineering, mathematics, or other scientific
disciplines in which African Americans are
underrepresented;
(3) acquisition of real property that is adjacent to
the campus in connection with the construction,
renovation, or addition to or improvement of campus
facilities;
(4) services necessary for the implementation of
projects or activities that are described in the grant
application and that are approved, in advance, by the
Secretary, except that not more than two percent of the
grant amount may be used for this purpose; and
(5) other activities proposed in the application
submitted under subsection (d) that--
(A) contribute to carrying out the purposes
of this part; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
(d) Application.--Any institution eligible for a grant under
this section shall submit an application which--
(1) demonstrates how the grant funds will be used to
improve graduate educational opportunities for Black
and low-income students, and lead to greater financial
independence; and
(2) provides, in the case of applications for grants
in excess of $1,000,000, the assurances required by
subsection (a)(2) and specifies the manner in which the
eligible institution is going to pay the non-Federal
share of the cost of the application.
(e) Eligibility.--
(1) In general.--Independent professional or graduate
institutions and programs eligible for grants under
subsection (a) are the following:
(A) Morehouse School of Medicine;
(B) Meharry Medical School;
(C) Charles R. Drew Postgraduate Medical
School;
(D) Clark-Atlanta University;
(E) Tuskegee University School of Veterinary
Medicine and other qualified graduate programs;
(F) Xavier University School of Pharmacy and
other qualified graduate programs;
(G) Southern University School of Law and
other qualified graduate programs;
(H) Texas Southern University School of Law
and School of Pharmacy and other qualified
graduate programs;
(I) Florida A&M University School of
Pharmaceutical Sciences and other qualified
graduate programs;
(J) North Carolina Central University School
of Law and other qualified graduate programs;
(K) Morgan State University qualified
graduate program;
(L) Hampton University qualified graduate
program;
(M) Alabama A&M qualified graduate program;
(N) North Carolina A&T State University
qualified graduate program;
(O) University of Maryland Eastern Shore
qualified graduate program;
(P) Jackson State University qualified
graduate program;
(Q) Norfolk State University qualified
graduate programs;
(R) Tennessee State University qualified
graduate programs;
(S) Alabama State University qualified
graduate programs;
(T) Prairie View A&M University qualified
graduate programs;
(U) Delaware State University qualified
graduate programs;
(V) Langston University qualified graduate
programs;
(W) Bowie State University qualified graduate
programs; [and]
(X) University of the District of Columbia
David A. Clarke School of Law[.]; and
(Y) University of the Virgin Islands School
of Medicine.
(2) Qualified graduate program.--(A) For the purposes
of this section, the term ``qualified graduate
program'' means a graduate or professional program that
provides a program of instruction in law or in the
physical or natural sciences, engineering, mathematics,
psychometrics, or other scientific discipline in which
African Americans are underrepresented and has students
enrolled in such program at the time of application for
a grant under this section.
(B) Notwithstanding the enrollment requirement
contained in subparagraph (A), an institution may use
an amount equal to not more than 10 percent of the
institution's grant under this section for the
development of a new qualified graduate program.
(3) Special rule.--Institutions that were awarded
grants under this section prior to October 1, 2008,
shall continue to receive such grants, subject to the
availability of appropriated funds, regardless of the
eligibility of the institutions described in
subparagraphs (S) through (X) of paragraph (1).
(4) One grant per institution.--The Secretary shall
not award more than 1 grant under this section in any
fiscal year to any institution of higher education.
(5) Institutional choice.--The president or
chancellor of the institution may decide which graduate
or professional school or qualified graduate program
will receive funds under the grant in any 1 fiscal
year, if the allocation of funds among the schools or
programs is delineated in the application for funds
submitted to the Secretary under this section.
(f) Funding Rule.--Subject to subsection (g), of the amount
appropriated to carry out this section for any fiscal year--
(1) the first $56,900,000 (or any lesser amount
appropriated) shall be available only for the purposes
of making grants to institutions or programs described
in subparagraphs (A) through (R) of subsection (e)(1);
(2) any amount in excess of $56,900,000, but not in
excess of $62,900,000, shall be available for the
purpose of making grants to institutions or programs
described in subparagraphs (S) through ([X] Y) of
subsection (e)(1); and
(3) any amount in excess of $62,900,000, shall be
made available to each of the institutions or programs
identified in subparagraphs (A) through ([X] Y)
pursuant to a formula developed by the Secretary that
uses the following elements:
(A) The ability of the institution to match
Federal funds with non-Federal funds.
(B) The number of students enrolled in the
programs for which the eligible institution
received funding under this section in the
previous year.
(C) The average cost of education per
student, for all full-time graduate or
professional students (or the equivalent)
enrolled in the eligible professional or
graduate school, or for doctoral students
enrolled in the qualified graduate programs.
(D) The number of students in the previous
year who received their first professional or
doctoral degree from the programs for which the
eligible institution received funding under
this section in the previous year.
(E) The contribution, on a percent basis, of
the programs for which the institution is
eligible to receive funds under this section to
the total number of African Americans receiving
graduate or professional degrees in the
professions or disciplines related to the
programs for the previous year.
(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and
(3) of subsection (f), no institution or qualified program
identified in subsection (e)(1) that received a grant for
fiscal year [2008] 2018 and that is eligible to receive a grant
in a subsequent fiscal year shall receive a grant amount in any
such subsequent fiscal year that is less than the grant amount
received for fiscal year [2008] 2018, unless the amount
appropriated is not sufficient to provide such grant amounts to
all such institutions and programs, or the institution cannot
provide sufficient matching funds to meet the requirements of
this section.
(h) Interaction with Other Grant Programs.--No institution
that is eligible for and receives an award under section 512,
723, or 724 for a fiscal year shall be eligible to apply for a
grant, or receive grant funds, under this section for the same
fiscal year.
SEC. 327. REPORTING AND AUDIT REQUIREMENTS.
[(a) Recordkeeping.--]Each recipient of a grant under this
part shall keep such records as the Secretary shall prescribe,
including records which fully disclose--
(1) the amount and disposition by such recipient of
the proceeds of such assistance;
(2) the cost of the project or undertaking in
connection with which such assistance is given or used;
(3) the amount of that portion of the cost of the
project or undertaking supplied by other sources; and
(4) such other records as will facilitate an
effective audit.
[(b) Use of Unexpended Funds.--Any funds paid to an
institution and not expended or used for the purposes for which
the funds were paid during the five-year period following the
date of the initial grant award, may be carried over and
expended during the succeeding five-year period, if such funds
were obligated for a purpose for which the funds were paid
during the five-year period following the date of the initial
grant award.]
* * * * * * *
PART D--HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
* * * * * * *
SEC. 343. FEDERAL INSURANCE FOR BONDS.
(a) General Rule.--Subject to the limitations in section 344,
the Secretary is authorized to enter into insurance agreements
to provide financial insurance to guarantee the full payment of
principal and interest on qualified bonds upon the conditions
set forth in subsections (b), (c) and (d).
(b) Responsibilities of the Designated Bonding Authority.--
The Secretary may not enter into an insurance agreement
described in subsection (a) unless the Secretary designates a
qualified bonding authority in accordance with sections 345(1)
and 346 and the designated bonding authority agrees in such
agreement to--
(1) use the proceeds of the qualified bonds, less
costs of issuance not to exceed 2 percent of the
principal amount thereof, to make loans to eligible
institutions or for deposit into [an escrow account] a
bond insurance fund for repayment of the bonds;
(2) provide in each loan agreement with respect to a
loan that not less than 95 percent of the proceeds of
the loan will be used--
(A) to finance the repair, renovation, and,
in exceptional cases, construction or
acquisition, of a capital project; or
(B) to refinance an obligation the proceeds
of which were used to finance the repair,
renovation, and, in exceptional cases,
construction or acquisition, of a capital
project;
(3)(A) charge such interest on loans, and provide for
such a schedule of repayments of loans, as will, upon
the timely repayment of the loans, provide adequate and
timely funds for the payment of principal and interest
on the bonds; and
(B) require that any payment on a loan expected to be
necessary to make a payment of principal and interest
on the bonds be due not less than 60 days prior to the
date of the payment on the bonds for which such loan
payment is expected to be needed;
(4) prior to the making of any loan, provide for a
credit review of the institution receiving the loan and
assure the Secretary that, on the basis of such credit
review, it is reasonable to anticipate that the
institution receiving the loan will be able to repay
the loan in a timely manner pursuant to the terms
thereof;
(5) provide in each loan agreement with respect to a
loan that, if a delinquency on such loan results in a
funding under the insurance agreement, the institution
obligated on such loan shall repay the Secretary, upon
terms to be determined by the Secretary, for such
funding;
(6) assign any loans to the Secretary, upon the
demand of the Secretary, if a delinquency on such loan
has required a funding under the insurance agreement;
(7) in the event of a delinquency on a loan, engage
in such collection efforts as the Secretary shall
require for a period of not less than 45 days prior to
requesting a funding under the insurance agreement;
(8) [establish an escrow account] subject to
subsection (f), establish a bond insurance fund--
(A) into which each eligible institution
shall deposit 5 percent of the proceeds of any
loan made under this part, with each eligible
institution required to maintain in [the escrow
account] the bond insurance fund an amount
equal to 5 percent of the outstanding principal
of all loans made to such institution under
this part; and
(B) the balance of which--
(i) shall be available to the
Secretary to pay principal and interest
on the bonds in the event of
delinquency in loan repayment; and
(ii) shall be used to return to an
eligible institution an amount equal to
any remaining portion of such
institution's 5 percent deposit of loan
proceeds within 120 days following
scheduled repayment of such
institution's loan;
(9) provide in each loan agreement with respect to a
loan that, if a delinquency on such loan results in
amounts being withdrawn from [the escrow account] the
bond insurance fund or the escrow account described in
subsection (f)(1)(B) to pay principal and interest on
bonds, subsequent payments on such loan shall be
available to replenish [such escrow account] such bond
insurance fund or escrow account;
(10) comply with the limitations set forth in section
344 of this part;
(11) make loans only to eligible institutions under
this part in accordance with conditions prescribed by
the Secretary to ensure that loans are fairly allocated
among as many eligible institutions as possible,
consistent with making loans of amounts that will
permit capital projects of sufficient size and scope to
significantly contribute to the educational program of
the eligible institutions; and
(12) limit loan collateralization, with respect to
any loan made under this part, to 100 percent of the
loan amount, except as otherwise required by the
Secretary.
(c) Additional Agreement Provisions.--Any insurance agreement
described in subsection (a) of this section shall provide as
follows:
(1) The payment of principal and interest on bonds
shall be insured by the Secretary until such time as
such bonds have been retired or canceled.
(2) The Federal liability for delinquencies and
default for bonds guaranteed under this part shall only
become effective upon the exhaustion of all the funds
held in [the escrow account described in subsection
(b)(8)] the bond insurance fund described in subsection
(b)(8) and the escrow account described in subsection
(f)(1)(B).
(3) The Secretary shall create a letter of credit
authorizing the Department of the Treasury to disburse
funds to the designated bonding authority or its
assignee.
(4) The letter of credit shall be drawn upon in the
amount determined by paragraph (5) of this subsection
upon the certification of the designated bonding
authority to the Secretary or the Secretary's designee
that there is a delinquency on 1 or more loans and
there are insufficient funds available from loan
repayments [and the escrow account], the bond insurance
fund, and the escrow account described in subsection
(f)(1)(B) to make a scheduled payment of principal and
interest on the bonds.
(5) Upon receipt by the Secretary or the Secretary's
designee of the certification described in paragraph
(4) of this subsection, the designated bonding
authority may draw a funding under the letter of credit
in an amount equal to--
(A) the amount required to make the next
scheduled payment of principal and interest on
the bonds, less
(B) the amount available to the designated
bonding authority from loan repayments [and the
escrow account], the bond insurance fund, and
the escrow account described in subsection
(f)(1)(B).
(6) All funds provided under the letter of credit
shall be paid to the designated bonding authority
within 2 business days following receipt of the
certification described in paragraph (4).
(d) Full Faith and Credit Provisions.--Subject to section
343(c)(1) the full faith and credit of the United States is
pledged to the payment of all funds which may be required to be
paid under the provisions of this section.
(e) Sale of Qualified Bonds.--Notwithstanding any other
provision of law, a qualified bond guaranteed under this part
may be sold to any party that offers terms that the Secretary
determines are in the best interest of the eligible
institution.
(f) Applicability of Bond Insurance Fund and Escrow Account
and Special Rules.--
(1) Applicability of bond insurance fund and escrow
account.--Except as provided in paragraph (2)--
(A) the bond insurance fund established under
subsection (b)(8) on the date of enactment of
the PROSPER Act shall be made available with
respect to loans made under this part on or
after such date; and
(B) the escrow account established under
subsection (b)(8) before the date of enactment
of the PROSPER Act and as in effect on the day
before such date of enactment shall be made
available with respect to loans made under this
part before the date of enactment of the
PROSPER Act.
(2) Special rules.--Notwithstanding paragraph (1)--
(A) in a case in which the amount in the bond
insurance fund described in paragraph (1)(A) is
insufficient to make payments of principal and
interest on bonds under subsection (b)(8)(B)(i)
in the event of delinquency in loan repayment
on loans made under this part on or after the
date of enactment of the PROSPER Act, amounts
in the escrow fund described in paragraph
(1)(B) shall be made available to the Secretary
to make such payments;
(B) in a case in which the amount in the
escrow account described in paragraph (1)(B) is
insufficient to make payments of principal and
interest on bonds under subsection (b)(8)(B)(i)
in the event of delinquency in loan repayment
on loans made under this part before the date
of enactment of the PROSPER Act, amounts in the
bond insurance fund described in paragraph
(1)(A) shall be made available to the Secretary
to make such payments; and
(C) in a case in which an institution is
required to return an amount equal to any
remaining portion of such institution's 5
percent deposit of loan proceeds under
subsection (b)(8)(B)(ii), the institution shall
return to the escrow account and the bond
insurance fund an amount that is proportionate
to the amount that was withdrawn from the
escrow account and the bond insurance fund,
respectively, by such institution.
* * * * * * *
SEC. 345. AUTHORITY OF THE SECRETARY.
In the performance of, and with respect to, the functions
vested in the Secretary by this part, the Secretary--
(1) shall, within 120 days of the date of enactment
of the Higher Education Opportunity Act, publish in the
Federal Register a notice and request for proposals for
any private for-profit organization or entity wishing
to serve as the designated bonding authority under this
part, which notice shall--
(A) specify the time and manner for
submission of proposals; and
(B) specify any information, qualifications,
criteria, or standards the Secretary determines
to be necessary to evaluate the financial
capacity and administrative capability of any
applicant to carry out the responsibilities of
the designated bonding authority under this
part;
(2) shall ensure that--
(A) the selection process for the designated
bonding authority is conducted on a competitive
basis; and
(B) the evaluation and selection process is
transparent;
(3) shall--
(A) review the performance of the designated
bonding authority after the third year of the
insurance agreement; and
(B) following the review described in
subparagraph (A), implement a revised
competitive selection process, if determined
necessary by the Secretary in consultation with
the Advisory Board established pursuant to
section 347;
(4) shall require that the first loans for capital
projects authorized under section 343 be made no later
than March 31, 1994;
(5) may sue and be sued in any court of record of a
State having general jurisdiction or in any district
court of the United States, and such district courts
shall have jurisdiction of civil actions arising under
this part without regard to the amount in controversy,
and any action instituted under this part without
regard to the amount in controversy, and any action
instituted under this section by or against the
Secretary shall survive notwithstanding any change in
the person occupying the office of the Secretary or any
vacancy in such office;
(6)(A) may foreclose on any property and bid for and
purchase at any foreclosure, or any other sale, any
property in connection with which the Secretary has
been assigned a loan pursuant to this part; and
(B) in the event of such an acquisition,
notwithstanding any other provisions of law relating to
the acquisition, handling, or disposal of real property
by the United States, complete, administer, remodel and
convert, dispose of, lease, and otherwise deal with,
such property, except that--
(i) such action shall not preclude any other
action by the Secretary to recover any
deficiency in the amount of a loan assigned to
the Secretary; and
(ii) any such acquisition of real property
shall not deprive any State or political
subdivision thereof of its civil or criminal
jurisdiction in and over such property or
impair the civil rights under the State or
local laws of the inhabitants on such property;
(7) may sell, exchange, or lease real or personal
property and securities or obligations;
(8) may include in any contract such other covenants,
conditions, or provisions necessary to ensure that the
purposes of this part will be achieved;
[(9) may, directly or by grant or contract, provide
technical assistance to eligible institutions to
prepare the institutions to qualify, apply for, and
maintain a capital improvement loan, including a loan
under this part; and]
(9) may, directly or by grant or contract, provide
financial counseling and technical assistance to
eligible institutions to prepare the institutions to
qualify, apply for, and maintain a capital improvement
loan, including a loan under this part; and
(10) not later than 120 days after the date of
enactment of the Higher Education Opportunity Act,
shall submit to the authorizing committees a report on
the progress of the Department in implementing the
recommendations made by the Government Accountability
Office in October 2006 for improving the Historically
Black College and Universities Capital Financing
Program.
SEC. 347. HBCU CAPITAL FINANCING ADVISORY BOARD.
(a) Establishment and Purpose.--There is established within
the Department of Education, the Historically Black College and
Universities Capital Financing Advisory Board (hereinafter in
this part referred to as the ``Advisory Board'') which shall
provide advice and counsel to the Secretary and the designated
bonding authority as to the most effective and efficient means
of implementing construction financing on African American
college campuses, and advise the Congress of the United States
regarding the progress made in implementing this part. The
Advisory Board shall meet with the Secretary at least twice
each year to advise him as to the capital needs of historically
Black colleges and universities, how those needs can be met
through the program authorized by this part, and what
additional steps might be taken to improve the operation and
implementation of the construction financing program.
(b) Board Membership.--
(1) Composition.--The Advisory Board shall be
appointed by the Secretary and shall be composed of 11
members as follows:
(A) The Secretary or the Secretary's
designee.
(B) Three members who are presidents of
private historically Black colleges or
universities.
(C) Three members who are presidents of
public historically Black colleges or
universities.
(D) The president of the United Negro College
Fund, Inc., or the president's designee.
(E) The president of the National Association
for Equal Opportunity in Higher Education, or
the designee of the Association.
(F) The executive director of the White House
Initiative on historically Black colleges and
universities.
(G) The president of the Thurgood Marshall
College Fund, or the designee of the president.
(2) Terms.--The term of office of each member
appointed under paragraphs (1)(B) and (1)(C) shall be 3
years, except that--
(A) of the members first appointed pursuant
to paragraphs (1)(B) and (1)(C), 2 shall be
appointed for terms of 1 year, and 3 shall be
appointed for terms of 2 years;
(B) members appointed to fill a vacancy
occurring before the expiration of a term of a
member shall be appointed to serve the
remainder of that term; and
(C) a member may continue to serve after the
expiration of a term until a successor is
appointed.
(c) Additional Recommendations from Advisory Board.--
(1) In general.--In addition to the responsibilities
of the Advisory Board described in subsection (a), the
Advisory Board shall advise the Secretary and the
authorizing committees regarding--
(A) the fiscal status and strategic financial
condition of not less than ten historically
Black colleges and universities that have--
(i) obtained construction financing
through the program under this part and
seek additional financing or
refinancing under such program; or
(ii) applied for construction
financing through the program under
this part but have not received
financing under such program; and
(B) the feasibility of reducing borrowing
costs associated with the program under this
part, including reducing interest rates.
[(2) Report.--Not later than six months after the
date of enactment of theHigher Education Opportunity
Act, the Advisory Board shall prepare and submit a
report to the authorizing committees regarding the
historically Black colleges and universities described
in paragraph (1)(A) that includes administrative and
legislative recommendations for addressing the issues
related to construction financing facing such
historically Black colleges and universities.]
(2) Report.--On an annual basis, the Advisory Board
shall prepare and submit to the authorizing committees
a report on the status of the historically Black
colleges and universities described in paragraph (1)(A)
and an overview of all loans in the capital financing
program, including the most recent loans awarded in the
fiscal year in which the report is submitted. The
report shall include administrative and legislative
recommendations, as needed, for addressing the issues
related to construction financing facing historically
Black colleges and universities.
* * * * * * *
PART E--MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM
Subpart 1--Minority Science and Engineering Improvement Program
* * * * * * *
SEC. 353. USE OF FUNDS.
(a) Types of Grants.--Funds appropriated to carry out this
subpart may be made available as--
(1) institutional grants (as defined in section
[365(6)] 359(6));
(2) cooperative grants (as defined in section
[365(7)] 359(7));
(3) design projects (as defined in section [365(8)]
359(8)); or
(4) special projects (as defined in section [365(9)]
359(9)).
(b) Authorized Uses for Each Type of Grant.--(1) The
authorized uses of funds made available as institutional grants
include (but are not limited to)--
(A) faculty development programs; or
(B) development of curriculum materials.
(2) The authorized uses of funds made available as
cooperative grants include (but are not limited to)--
(A) assisting institutions in sharing facilities and
personnel;
(B) disseminating information about established
programs in science and engineering;
(C) supporting cooperative efforts to strengthen the
institutions' science and engineering programs; or
(D) carrying out a combination of any of the
activities in subparagraphs (A) through (C).
(3) The authorized uses of funds made available as design
projects include (but are not limited to)--
(A) developing planning, management, and evaluation
systems; or
(B) developing plans for initiating scientific
research and for improving institutions' capabilities
for such activities.
Funds used for design project grants may not be used to pay
more than 50 percent of the salaries during any academic year
of faculty members involved in the project.
(4) The authorized uses of funds made available as special
projects include (but are not limited to)--
(A) advanced science seminars;
(B) science faculty workshops and conferences;
(C) faculty training to develop specific science
research or education skills;
(D) research in science education;
(E) programs for visiting scientists;
(F) preparation of films or audio-visual materials in
science;
(G) development of learning experiences in science
beyond those normally available to minority
undergraduate students;
(H) development of pre-college enrichment activities
in science; or
(I) any other activities designed to address specific
barriers to the entry of minorities into science.
[Subpart 2--Programs in STEM Fields
[SEC. 355. YES PARTNERSHIPS GRANT PROGRAM.
[(a) Grant Program Authorized.--Subject to the availability
of appropriations to carry out this subpart, the Secretary
shall make grants to eligible partnerships (as described in
subsection (f)) to support the engagement of underrepresented
minority youth and youth who are low-income individuals (as
such term is defined in section 312) in science, technology,
engineering, and mathematics through outreach and hands-on,
experiential-based learning projects that encourage students in
kindergarten through grade 12 who are underrepresented minority
youth or low-income individuals to pursue careers in science,
technology, engineering, and mathematics.
[(b) Minimum Grant Amount.--A grant awarded to a partnership
under this subpart shall be for an amount that is not less than
$500,000.
[(c) Duration.--A grant awarded under this subpart shall be
for a period of five years.
[(d) Non-Federal Matching Share Required.--A partnership
receiving a grant under this subpart shall provide, from non-
Federal sources, in cash or in-kind, an amount equal to 50
percent of the costs of the project supported by such grant.
[(e) Distribution of Grants.--In awarding grants under this
subpart, the Secretary shall ensure that, to the maximum extent
practicable, the projects funded under this subpart are located
in diverse geographic regions of the United States.
[(f) Eligible Partnerships.--Notwithstanding the general
eligibility provision in section 361, eligibility to receive
grants under this subpart is limited to partnerships described
in paragraph (5) of such section.
[SEC. 356. PROMOTION OF ENTRY INTO STEM FIELDS.
[(a) Authority To Contract, Subject to Appropriations.--The
Secretary is authorized to enter into a contract with a firm
with a demonstrated record of success in advertising to
implement a campaign to expand the population of qualified
individuals in science, technology, engineering, and
mathematics fields (referred to in this section as ``STEM
fields'') by encouraging young Americans to enter such fields.
[(b) Design of Campaign.--The campaign under this section
shall be designed to enhance the image of education and
professions in the STEM fields and promote participation in the
STEM fields, and may include--
[(1) monitoring trends in youths' attitudes toward
pursuing education and professions in the STEM fields
and their propensity toward entering the STEM fields;
[(2) determining what factors contribute to
encouraging and discouraging Americans from pursuing
study in STEM fields and entering the STEM fields
professionally;
[(3) determining what specific factors limit the
participation of groups currently underrepresented in
STEM fields, including Latinos, African-Americans, and
women; and
[(4) drawing from the market research performed under
this section and implementing an advertising campaign
to encourage young Americans to take up studies in STEM
fields, beginning at an early age.
[(c) Required Components.--The campaign under this section
shall--
[(1) include components that focus tailored messages
on appropriate age groups, starting with elementary
school students; and
[(2) link participation in the STEM fields to the
concept of service to one's country, so that young
people will be encouraged to enter the STEM fields in
order fulfill the obligation to be of service to their
country.
[(d) Priority.--The campaign under this section shall hold as
a high priority making specific appeals to Hispanic Americans,
African Americans, Native Americans, students with
disabilities, and women, who are currently underrepresented in
the STEM fields, in order to increase their numbers in the STEM
fields, and shall tailor recruitment efforts to each specific
group.
[(e) Use of Variety of Media.--The campaign under this
section shall make use of a variety of media, with an emphasis
on television advertising, to reach its intended audience.
[(f) Teaching.--The campaign under this section shall include
a narrowly focused effort to attract current professionals in
the STEM fields, through advertising in mediums likely to reach
that specific group, into teaching in a STEM field in
elementary schools and secondary schools.
[SEC. 357. EVALUATION AND ACCOUNTABILITY PLAN.
[The Secretary shall develop an evaluation and accountability
plan for projects funded under this subpart. Such plan shall
include, if the Secretary determines that it is practical, an
objective measure of the impact of such projects, such as a
measure of whether underrepresented minority student enrollment
in courses related to science, technology, engineering, and
mathematics increases at the secondary and postsecondary
levels.]
Subpart [3] 2--Administrative and General Provisions
SEC. [361.] 355. ELIGIBILITY FOR GRANTS.
Eligibility to receive grants under this part is limited
to--
(1) public and private nonprofit institutions of
higher education that--
(A) award baccalaureate degrees; and
(B) are minority institutions;
(2) public or private nonprofit institutions of
higher education that--
(A) award associate degrees; and
(B) are minority institutions that--
(i) have a curriculum that includes
science or engineering subjects; and
(ii) enter into a partnership with
public or private nonprofit
institutions of higher education that
award baccalaureate degrees in science
and engineering;
(3) nonprofit science-oriented organizations,
professional scientific societies, and institutions of
higher education that award baccalaureate degrees,
that--
(A) provide a needed service to a group of
minority institutions; or
(B) provide in-service training for project
directors, scientists, and engineers from
minority institutions;
(4) consortia of organizations, that provide needed
services to one or more minority institutions, the
membership of which may include--
(A) public and private nonprofit institutions
of higher education which have a curriculum in
science or engineering;
(B) institutions of higher education that
have a graduate or professional program in
science or engineering;
(C) research laboratories of, or under
contract with, the Department of Energy, the
Department of Defense, or the National
Institutes of Health;
(D) relevant offices of the National
Aeronautics and Space Administration, National
Oceanic and Atmospheric Administration,
National Science Foundation, and National
Institute of Standards and Technology;
(E) quasi-governmental entities that have a
significant scientific or engineering mission;
or
(F) institutions of higher education that
have State-sponsored centers for research in
science, technology, engineering, and
mathematics; or
[(5) only with respect to grants under subpart 2,
partnerships of organizations, the membership of which
shall include--
[(A) at least one institution of higher
education eligible for assistance under this
title or title V;
[(B) at least one high-need local educational
agency (as defined in section 200); and
[(C) at least two community organizations or
entities, such as businesses, professional
associations, community-based organizations,
philanthropic organizations, or State
agencies.]
SEC. [362.] 356. GRANT APPLICATION.
(a) Submission and Contents of Applications.--An eligible
applicant (as [determined under section 361)] determined under
section 355) that desires to receive a grant under this part
shall submit to the Secretary an application therefor at such
time or times, in such manner, and containing such information
as the Secretary may prescribe by regulation. Such application
shall set forth--
(1) a program of activities for carrying out one or
more of the purposes described in section 351(b) in
such detail as will enable the Secretary to determine
the degree to which such program will accomplish such
purpose or purposes; and
(2) such other policies, procedures, and assurances
as the Secretary may require by regulation.
(b) Approval Based on Likelihood of Progress.--The Secretary
shall approve an application only if the Secretary determines
that the application sets forth a program of activities which
are likely to make substantial progress toward achieving the
purposes of this part.
SEC. [363.] 357. CROSS PROGRAM AND CROSS AGENCY COOPERATION.
The Minority Science and Engineering Improvement Programs
shall cooperate and consult with other programs within the
Department and within Federal, State, and private agencies
which carry out programs to improve the quality of science,
mathematics, and engineering education.
SEC. [364.] 358. ADMINISTRATIVE PROVISIONS.
(a) Technical Staff.--The Secretary shall appoint, without
regard to the provisions of title 5 of the United States Code
governing appointments in the competitive service, not less
than 2 technical employees with appropriate scientific and
educational background to administer the programs under this
part who may be paid without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates.
(b) Procedures for Grant Review.--The Secretary shall
establish procedures for reviewing and evaluating grants and
contracts made or entered into under such programs. Procedures
for reviewing grant applications, based on the peer review
system, or contracts for financial assistance under this title
may not be subject to any review outside of officials
responsible for the administration of the Minority Science and
Engineering Improvement Programs.
SEC. [365.] 359. DEFINITIONS.
For the purpose of this part--
(1) The term ``accredited'' means currently certified
by a nationally recognized accrediting agency or making
satisfactory progress toward achieving accreditation.
(2) The term ``minority'' means American Indian,
Alaskan Native, Black American (not of Hispanic
origin), [Hispanic (including] Hispanic American
(including persons of Mexican, Puerto Rican, Cuban, and
Central or South American origin), Pacific Islander or
other ethnic group underrepresented in science and
engineering.
(3) The term ``minority institution'' means an
institution of higher education whose enrollment of a
single minority or a combination of minorities (as
defined in paragraph (2)) exceeds 50 percent of the
total enrollment. The Secretary shall verify this
information from the data on enrollments in the higher
education general information surveys (HEGIS) furnished
by the institution to the Office for Civil Rights,
Department of Education.
(4) The term ``science'' means, for the purpose of
this program, the biological, engineering,
mathematical, physical, behavioral, and social
sciences, and history and philosophy of science; also
included are interdisciplinary fields which are
comprised of overlapping areas among two or more
sciences.
(5) The term ``underrepresented in science and
engineering'' means a minority group whose number of
scientists and engineers per 10,000 population of that
group is substantially below the comparable figure for
scientists and engineers who are white and not of
Hispanic origin.
(6) The term ``institutional grant'' means a grant
that supports the implementation of a comprehensive
science improvement plan, which may include any
combination of activities for improving the preparation
of minority students for careers in science.
(7) The term ``cooperative grant'' means a grant that
assists groups of nonprofit accredited colleges and
universities to work together to conduct a science
improvement program.
(8) The term ``design projects'' means projects that
assist minority institutions that do not have their own
appropriate resources or personnel to plan and develop
long-range science improvement programs.
(9) The term ``special projects'' means--
(A) a special project grant to a minority
institution which supports activities that--
(i) improve the quality of training
in science and engineering at minority
institutions; or
(ii) enhance the minority
institutions' general scientific
research capabilities; or
(B) a special project grant to any eligible
applicant which supports activities that--
(i) provide a needed service to a
group of eligible minority
institutions; or
(ii) provide in-service training for
project directors, scientists, and
engineers from eligible minority
institutions.
PART F--STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND
OTHER MINORITY-SERVING INSTITUTIONS
SEC. 371. INVESTMENT IN HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
AND OTHER MINORITY-SERVING INSTITUTIONS.
(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--
(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
subsection (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.--
(A) Provision of funds.--There shall be
available to the Secretary to carry out this
section, from funds in the Treasury not
otherwise appropriated, $255,000,000 for each
of the fiscal years 2008 through 2019. The
authority to award grants under this section
shall expire at the end of fiscal year 2019.
(B) Availability.--Funds made available under
subparagraph (A) for a fiscal year shall remain
available for the next succeeding fiscal year.
(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
subparagraph 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
applications 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 institutions 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 institutions 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 this title, as the amount
appropriated to carry out part B of
this title for purposes of allotments
under section 324, for use by such
institutions with a priority for--
(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 students 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 institutions described in
subsection (a)(5) and shall be
available 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 mathematics
(STEM);
(II) health education;
(III) internationalization or
globalization;
(IV) teacher preparation; or
(V) improving educational
outcomes of African 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 available 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 available 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 available to eligible
institutions described in subsection
(a)(6) for activities described in
[section 311(c)] section 311(b); and
(iv) $5,000,000 for such fiscal year
shall be available 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
scientific or
laboratory equipment
for educational
purposes, including
instructional and
research purposes;
(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
academic instruction;
(ee) the purchase of
library books,
periodicals, microfilm,
and other educational
materials;
(ff) funds and
administrative
management, 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 possible 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 Presenting 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
``enrollment 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 paragraph (5));
(C) attended a public or nonprofit private
secondary school--
(i) that is in the school district of
a local educational 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
(ii) which for the purpose of this
paragraph and for that year was
determined by the Secretary (pursuant
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(h)), and a
majority of such first-generation college
students are low-income individuals.
(4) Low-income individual.--The term ``low-income
individual'' has the meaning given such term in section
402A(h).
(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
students; 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
expenditure 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 subparagraph 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;
(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 students (as that term is
defined in section 402A(h)); and
(iv) of which not less than 50
percent of the undergraduate students
are enrolled in an educational program
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
associate'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--
(i) part B;
(ii) [part A of] title V; or
(iii) an annual authorization of
appropriations under the Act of March
2, 1867 (14 Stat. 438; 20 U.S.C. 123).
Part G--General Provisions
SEC. 391. APPLICATIONS FOR ASSISTANCE.
(a) Applications.--
(1) Applications required.--Any institution which is
eligible for assistance under this title shall submit
to the Secretary an application for assistance at such
time, in such form, and containing such information, as
may be necessary to enable the Secretary to evaluate
the institution's need for the assistance. Subject to
the availability of appropriations to carry out this
title, the Secretary may approve an application for
assistance under this title only if the Secretary
determines that--
(A) the application meets the requirements of
subsection (b);
(B) the applicant is eligible for assistance
in accordance with the part of this title under
which the assistance is sought; and
(C) the applicant's performance goals are
sufficiently rigorous as to meet the purposes
of this title and the performance objectives
and indicators for this title established by
the Secretary pursuant to the Government
Performance and Results Act of 1993 and the
amendments made by such Act.
(2) Preliminary applications.--In carrying out
paragraph (1), the Secretary may develop a preliminary
application for use by eligible institutions applying
under part A prior to the submission of the principal
application.
(b) Contents.--An institution, in its application for a
grant, shall--
(1) set forth, or describe how the institution (other
than an institution applying under part C, D or E) will
develop, a comprehensive development plan to strengthen
the institution's academic quality and [institutional
management, and otherwise provide for institutional
self-sufficiency and growth (including measurable
objectives for the institution and the Secretary to use
in monitoring the effectiveness of activities under
this title);] institutional management, and use the
grant to provide for, and lead to, institutional self-
sustainability and growth (including measurable
objectives for the institution and the Secretary to use
in monitoring the effectiveness of activities under
this title);
(2) set forth policies and procedures to ensure that
Federal funds made available under this title for any
fiscal year will be used to supplement and, to the
extent practical, increase the funds that would
otherwise be made available for the purposes of section
311(b) or 323, and in no case supplant those funds;
(3) set forth policies and procedures for evaluating
the effectiveness in accomplishing the purpose of the
activities for which a grant is sought under this
title;
(4) provide for such fiscal control and fund
accounting procedures as may be necessary to ensure
proper disbursement of and accounting for funds made
available to the applicant under this title;
(5) provide (A) for making such reports, in such form
and containing such information, as the Secretary may
require to carry out the functions under this title,
including not less than one report annually setting
forth the institution's progress toward achieving the
objectives for which the funds were awarded, and (B)
for keeping such records and affording such access
thereto, as the Secretary may find necessary to assure
the correctness and verification of such reports;
(6) provide that the institution will comply with the
limitations set forth in section 396, except that for
purposes of section 316, paragraphs (2) and (3) of
section 396 shall not apply;
(7) describe in a comprehensive manner any proposed
project for which funds are sought under the
application and include--
(A) a description of the various components
of the proposed project, including the
estimated time required to complete each such
component;
(B) in the case of any development project
which consists of several components (as
described by the applicant pursuant to
subparagraph (A)), a statement identifying
those components which, if separately funded,
would be sound investments of Federal funds and
those components which would be sound
investments of Federal funds only if funded
under this title in conjunction with other
parts of the development project (as specified
by the applicant);
[(C) an evaluation by the applicant of the
priority given any proposed project for which
funds are sought in relation to any other
projects for which funds are sought by the
applicant under this title, and a similar
evaluation regarding priorities among the
components of any single proposed project (as
described by the applicant pursuant to
subparagraph (A));]
[(D)] (C) a detailed budget showing the
manner in which funds for any proposed project
would be spent by the applicant; and
[(E)] (D) a detailed description of any
activity which involves the expenditure of more
than $25,000, as identified in the budget
referred to in subparagraph (D); [and]
[(8) include such other information as the Secretary
may prescribe.]
(8) set forth a 5-year plan for improving the
assistance provided by the institution; and
(9) submit such enrollment data as may be necessary
to demonstrate that the institution is a minority-
serving institution.
(c) Priority Criteria Publication Required.--The Secretary
shall publish in the Federal Register, pursuant to chapter 5 of
title 5, United States Code, all policies and procedures
required to exercise the authority set forth in subsection (a).
No other criteria, policies, or procedures shall apply.
(d) Eligibility Data.--The Secretary shall use the most
recent and relevant data concerning the number and percentage
of students receiving need-based assistance under title IV of
this Act in making eligibility determinations under section 312
and shall advance the base-year forward following each annual
grant cycle.
(e) Technical Assistance.--The Secretary, directly or by
grant or contract, may provide technical assistance to eligible
institutions to prepare the institutions to qualify, apply for,
and maintain a grant, under this title.
SEC. 392. WAIVER AUTHORITY AND REPORTING REQUIREMENT.
(a) Waiver Requirements; Need-Based Assistance Students.--The
Secretary may waive the requirements set forth in section
312(b)(1)(A) in the case of an institution--
(1) which is extensively subsidized by the State in
which it is located and charges low or no tuition;
(2) which serves a substantial number of low-income
students as a percentage of its total student
population;
(3) which is contributing substantially to increasing
higher education opportunities for educationally
disadvantaged, underrepresented, or minority students,
who are low-income individuals;
(4) which is substantially increasing higher
educational opportunities for individuals in rural or
other isolated areas which are unserved by
postsecondary institutions;
(5) located on or near an Indian reservation or a
substantial population of Indians, if the Secretary
determines that the waiver will substantially increase
higher education opportunities appropriate to the needs
of American Indians;
(6) that is a tribally controlled college or
university as defined in section 2 of the Tribally
Controlled Colleges and Universities Assistance Act of
1978; or
(7) wherever located, if the Secretary determines
that the waiver will substantially increase higher
education opportunities appropriate to the needs of
Black Americans, Hispanic Americans, Native Americans,
Asian Americans, or Pacific Islanders, including Native
Hawaiians.
(b) Waiver Determinations; Expenditures; Completion Rates.--
(1) The Secretary may waive the requirements set forth in
section 312(b)(1)(B) or 312(b)(3) if the Secretary determines,
based on persuasive evidence submitted by the institution, that
the institution's failure to meet that criterion is due to
factors which, when used in the determination of compliance
with such criterion, distort such determination, and that the
institution's designation as an eligible institution under part
A is otherwise consistent with the purposes of such parts.
(2) The Secretary shall submit to the Congress every other
year a report concerning the institutions which, although not
satisfying the criterion contained in section 312(b)(1)(B) or
312(b)(3), have been determined to be eligible institutions
under part A which enroll significant numbers of Black
American, Hispanic American, Native American, Asian American,
or Native Hawaiian students under part A, as the case may be.
Such report shall--
(A) identify the factors referred to in paragraph (1)
which were considered by the Secretary as factors that
distorted the determination of compliance with
subparagraphs (A) and (B) of section 312(b)(1) or
section 312(b)(3); and
(B) contain a list of each institution determined to
be an eligible institution under part A including a
statement of the reasons for each such determination.
(3) The Secretary may waive the requirement set forth in
section 312(b)(1)(E) in the case of an institution located on
or near an Indian reservation or a substantial population of
Indians, if the Secretary determines that the waiver will
substantially increase higher education opportunities
appropriate to the needs of American Indians.
[(c) Waiver Authority With Respect to Institutions Located in
an Area Affected by a Gulf Hurricane Disaster.--
[(1) Waiver authority.--Notwithstanding any other
provision of law, unless enacted with specific
reference to this section, for any affected institution
that was receiving assistance under this title at the
time of a Gulf hurricane disaster, the Secretary shall,
for each of the fiscal years 2009 through 2011 (and
may, for each of the fiscal years 2012 and 2013)--
[(A) waive--
[(i) the eligibility data
requirements set forth in section
391(d);
[(ii) the wait-out period set forth
in section 313(d);
[(iii) the allotment requirements
under section 324; and
[(iv) the use of the funding formula
developed pursuant to section
326(f)(3);
[(B) waive or modify any statutory or
regulatory provision to ensure that affected
institutions that were receiving assistance
under this title at the time of a Gulf
hurricane disaster are not adversely affected
by any formula calculation for fiscal year 2009
or for any of the four succeeding fiscal years,
as necessary; and
[(C) make available to each affected
institution an amount that is not less than the
amount made available to such institution under
this title for fiscal year 2006, except that
for any fiscal year for which the funds
appropriated for payments under this title are
less than the appropriated level for fiscal
year 2006, the amount made available to such
institutions shall be ratably reduced among the
institutions receiving funds under this title.
[(2) Definitions.--In this subsection:
[(A) Affected institution.--The term
``affected institution'' means an institution
of higher education that--
[(i) is--
[(I) a part A institution
(which term shall have the
meaning given the term
``eligible institution'' under
section 312(b)); or
[(II) a part B institution,
as such term is defined in
section 322(2), or as
identified in section 326(e);
[(ii) is located in an area affected
by a Gulf hurricane disaster; and
[(iii) is able to demonstrate that,
as a result of the impact of a Gulf
hurricane disaster, the institution--
[(I) incurred physical
damage;
[(II) has pursued collateral
source compensation from
insurance, the Federal
Emergency Management Agency,
and the Small Business
Administration, as appropriate;
and
[(III) was not able to fully
reopen in existing facilities
or to fully reopen to the pre-
hurricane enrollment levels
during the 30-day period
beginning on August 29, 2005.
[(B) Area affected by a gulf hurricane
disaster; gulf hurricane disaster.--The terms
``area affected by a Gulf hurricane disaster''
and ``Gulf hurricane disaster'' have the
meanings given such terms in section 209 of the
Higher Education Hurricane Relief Act of 2005
(Public Law 109-148, 119 Stat. 2809).]
(c) Waiver Authority With Respect to Institutions Located in
an Area Affected by a Major Disaster.--
(1) Waiver authority.--Notwithstanding any other
provision of law, unless enacted with specific
reference to this section, in the case of a major
disaster, the Secretary may waive for affected
institutions--
(A) the eligibility data requirements set
forth in section 391(d) and section 521(e);
(B) the allotment requirements under section
324; and
(C) the use of the funding formula developed
pursuant to section 326(f)(3);
(2) Definitions.--In this subsection:
(A) Affected institution.--The term
``affected institution'' means an institution
of higher education that--
(i) is--
(I) a part A institution
(which term shall have the
meaning given the term
``eligible institution'' under
section 312(b) or section
502(a)(6)); or
(II) a part B institution, as
such term is defined in section
322(2), or as identified in
section 326(e);
(ii) is located in an area affected
by a major disaster; and
(iii) is able to demonstrate that, as
a result of the impact of a major
disaster, the institution--
(I) incurred physical damage;
(II) has pursued collateral
source compensation from
insurance, the Federal
Emergency Management Agency,
and the Small Business
Administration, as appropriate;
and
(III) was not able to fully
reopen in existing facilities
or to fully reopen to the pre-
disaster enrollment levels.
(B) Major disaster.--The term ``major
disaster'' has the meaning given such term in
section 102(2) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5122(2)).
* * * * * * *
SEC. 399. AUTHORIZATIONS OF APPROPRIATIONS.
[(a) Authorizations.--
[(1) Part a.--(A) There are authorized to be
appropriated to carry out part A (other than sections
316 through 320), $135,000,000 for fiscal year 2009,
and such sums as may be necessary for each of the five
succeeding fiscal years.
[(B) There are authorized to be appropriated to carry
out section 316, $30,000,000 for fiscal year 2009, and
such sums as may be necessary for each of the five
succeeding fiscal years.
[(C) There are authorized to be appropriated to carry
out section 317, $15,000,000 for fiscal year 2009, and
such sums as may be necessary for each of the five
succeeding fiscal years.
[(D) There are authorized to be appropriated to carry
out section 318, $75,000,000 for fiscal year 2009 and
each of the five succeeding fiscal years.
[(E) There are authorized to be appropriated to carry
out section 319, $25,000,000 for fiscal year 2009, and
such sums as may be necessary for each of the five
succeeding fiscal years.
[(F) There are authorized to be appropriated to carry
out section 320, $30,000,000 for fiscal year 2009, and
such sums as may be necessary for each of the five
succeeding fiscal years.
[(2) Part b.--(A) There are authorized to be
appropriated to carry out part B (other than section
326), $375,000,000 for fiscal year 2009, and such sums
as may be necessary for each of the five succeeding
fiscal years.
[(B) There are authorized to be appropriated to carry
out section 326, $125,000,000 for fiscal year 2009, and
such sums as may be necessary for each of the five
succeeding fiscal years.
[(3) Part c.--There are authorized to be appropriated
to carry out part C, $10,000,000 for fiscal year 2009,
and such sums as may be necessary for each of the five
succeeding fiscal years.
[(4) Part d.--(A) There are authorized to be
appropriated to carry out part D (other than section
345(9), but including section 347), $185,000 for fiscal
year 2009, and such sums as may be necessary for each
of the five succeeding fiscal years.
[(B) There are authorized to be appropriated to carry
out section 345(9) such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal
years.
[(5) Part e.--(A) There are authorized to be
appropriated to carry out subpart 1 of part E,
$12,000,000 for fiscal year 2009, and such sums as may
be necessary for each of the five succeeding fiscal
years.
[(B) There are authorized to be appropriated to carry
out subpart 2 of part E, such sums as may be necessary
for fiscal year 2009 and each of the five succeeding
fiscal years.]
(a) Authorizations.--
(1) Part a.--(A) There are authorized to be
appropriated to carry out section 316, $27,599,000 for
each of fiscal years 2019 through 2024.
(B) There are authorized to be appropriated to carry
out section 317, $13,802,000 for each of fiscal years
2019 through 2024.
(C) There are authorized to be appropriated to carry
out section 318, $9,942,000 for each of fiscal years
2019 through 2024.
(D) There are authorized to be appropriated to carry
out section 319, $3,348,000 for each of fiscal years
2019 through 2024.
(E) There are authorized to be appropriated to carry
out section 320, $3,348,000 for each of fiscal years
2019 through 2024.
(2) Part b.--(A) There are authorized to be
appropriated to carry out part B (other than section
326), $244,694,000 for each of fiscal years 2019
through 2024.
(B) There are authorized to be appropriated to carry
out section 326, $63,281,000 for each of fiscal years
2019 through 2024.
(3) Part d.--There are authorized to be appropriated
to carry out part D, $20,484,000 for each of fiscal
years 2019 through 2024. Of the amount authorized, 1.63
percent shall be reserved for administrative expenses.
(4) Part e.--There are authorized to be appropriated
to carry out subpart 1 of part E, $9,648,000 for each
of fiscal years 2019 through 2024.
(b) Use of Multiple Year Awards.--In the event of a multiple
year award to any institution under this title, the Secretary
shall make funds available for such award from funds
appropriated for this title for the fiscal year in which such
funds are to be used by the recipient.
* * * * * * *
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
* * * * * * *
Subpart 1--Federal Pell Grants
SEC. 401. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS; APPLICATIONS.
(a) Program Authority and Method of Distribution.--(1) For
each fiscal year through [fiscal year 2017] fiscal year 2024,
the Secretary shall pay to each eligible institution such sums
as may be necessary to pay to each eligible student (defined in
accordance with section 484) for each academic year during
which that student is in attendance at an eligible program at
an institution of higher education, as an undergraduate, a
Federal Pell Grant in the amount for which that student is
eligible, as determined pursuant to subsection (b). Not less
than 85 percent of such sums shall be advanced to eligible
institutions prior to the start of each payment period and
shall be based upon an amount requested by the institution as
needed to pay eligible students 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 institutions in an accurate and timely
manner, except that this sentence shall not be construed to
limit the authority of the Secretary to place an institution on
a reimbursement system of payment.
(2) Nothing in this section shall be interpreted to prohibit
the Secretary from paying directly to students, in advance of
the beginning of the academic term, an amount for which they
are eligible, in cases where the eligible institution elects
not to participate in the disbursement system required by
paragraph (1).
(3) Grants made under this subpart shall be known as
``Federal Pell Grants''.
(b) Purpose and Amount of Grants.--(1) The purpose of this
subpart is to provide a Federal Pell Grant that in combination
with reasonable family and student contribution and
supplemented by the programs authorized under subparts 3 and 4
of this part, will meet at least 75 percent of a student's cost
of attendance (as defined in section 472), unless the
institution determines that a greater amount of assistance
would better serve the purposes of this section.
(2)
(A) The amount of the Federal Pell Grant for a
student eligible under this part shall be--
(i) the maximum Federal Pell Grant, as
specified in the last enacted appropriation Act
applicable to that award year, plus
(ii) the amount of the increase calculated
under paragraph (7)(B) for that year, less
(iii) an amount equal to the amount
determined to be the expected family
contribution with respect to that student for
that year.
(B) In any case where a student attends an institution of
higher education on less than a full-time basis (including a
student who attends an institution of higher education on less
than a half-time basis) during any academic year, the amount of
the Federal Pell Grant to which that student is entitled shall
be reduced in proportion to the degree to which that student is
not so attending on a full-time basis, in accordance with a
schedule of reductions established by the Secretary for the
purposes of this division, computed in accordance with this
subpart. Such schedule of reductions shall be established by
regulation and published in the Federal Register in accordance
with section 482 of this Act.
(3) No Federal Pell Grant under this subpart shall exceed the
difference between the expected family contribution for a
student and the cost of attendance (as defined in section 472)
at the institution at which that student is in attendance. If,
with respect to any student, it is determined that the amount
of a Federal Pell Grant plus the amount of the expected family
contribution for that student exceeds the cost of attendance
for that year, the amount of the Federal Pell Grant shall be
reduced until the combination of expected family contribution
and the amount of the Federal Pell Grant does not exceed the
cost of attendance at such institution.
(4) No Federal Pell Grant shall be awarded to a student under
this subpart if the amount of that grant for that student as
determined under this subsection for any academic year is less
than ten percent of the maximum amount of a Federal Pell Grant
award determined under paragraph (2)(A) for such academic year.
(5) Notwithstanding any other provision of this subpart, the
Secretary shall allow the amount of the Federal Pell Grant to
be exceeded for students participating in a program of study
abroad approved for credit by the institution at which the
student is enrolled when the reasonable costs of such program
are greater than the cost of attendance at the student's home
institution, except that the amount of such Federal Pell Grant
in any fiscal year shall not exceed the maximum amount of a
Federal Pell Grant award determined under paragraph (2)(A), for
which a student is eligible during such award year. If the
preceding sentence applies, the financial aid administrator at
the home institution may use the cost of the study abroad
program, rather than the home institution's cost, to determine
the cost of attendance of the student.
(6) No Federal Pell Grant shall be awarded under this subpart
to any individual who is incarcerated in any Federal or State
penal institution or who is subject to an involuntary civil
commitment upon completion of a period of incarceration for a
forcible or nonforcible sexual offense (as determined in
accordance with the Federal Bureau of Investigation's Uniform
Crime Reporting Program).
(7) Additional funds.--
(A) In general.--There are authorized to be
appropriated, and there are appropriated (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) to carry out subparagraph (B)
of this paragraph and paragraph (9),
such sums as may be necessary for
fiscal year 2010 and each subsequent
fiscal year to provide the amount of
increase of the maximum Federal Pell
Grant required by clauses (ii) and
(iii) of subparagraph (B) and to
provide the additional amount required
by paragraph (9); and
(iv) to carry out this section--
(I) $13,500,000,000 for
fiscal year 2011;
(II) $13,795,000,000 for
fiscal year 2012;
(III) $7,587,000,000 for
fiscal year 2013;
(IV) $588,000,000 for fiscal
year 2014;
(V) $0 for fiscal year 2015;
(VI) $0 for fiscal year 2016;
(VII) $1,320,000,000 for
fiscal year 2017;
(VIII) $1,382,000,000 for
fiscal year 2018;
(IX) $1,409,000,000 for
fiscal year 2019;
(X) $1,430,000,000 for fiscal
year 2020; and
(XI) $1,145,000,000 for
fiscal year 2021 and each
succeeding fiscal year.
(B) Increase in federal pell grants.--The
amounts made available pursuant to clauses (i)
through (iii) of subparagraph (A) of this
paragraph 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, 2011-2012, and 2012-2013;
and
(iii) the amount determined under
subparagraph (C) for each succeeding
award year.
(C) Adjustment amounts.--
(i) Award year 2013-2014.--For award
year 2013-2014, the amount determined
under this subparagraph for purposes of
subparagraph (B)(iii) shall be equal
to--
(I) $5,550 or the total
maximum Federal Pell Grant for
the preceding award year (as
determined under clause
(iv)(II)), whichever is
greater, increased by a
percentage equal to the annual
adjustment percentage for award
year 2013-2014, reduced by
(II) $4,860 or the maximum
Federal Pell Grant for which a
student was eligible for the
preceding award year, as
specified in the last enacted
appropriation Act applicable to
that year, whichever is
greater; and
(III) rounded to the nearest
$5.
(ii) Award years 2014-2015 through
2017-2018.--For each of the award years
2014-2015 through 2017-2018, the amount
determined under this subparagraph for
purposes of subparagraph (B)(iii) shall
be equal to--
(I) the total maximum Federal
Pell Grant for the preceding
award year (as determined under
clause (iv)(II)), increased by
a percentage equal to the
annual adjustment percentage
for the award year for which
the amount under this
subparagraph is being
determined, reduced by
(II) $4,860 or the maximum
Federal Pell Grant for which a
student was eligible for the
preceding award year, as
specified in the last enacted
appropriation Act applicable to
that year, whichever is
greater; and
(III) rounded to the nearest
$5.
(iii) Subsequent award years.--For
award year 2018-2019 and each
subsequent award year, the amount
determined under this subparagraph for
purposes of subparagraph (B)(iii) shall
be equal to the amount determined under
clause (ii) for award year 2017-2018.
(iv) Definitions.--For purposes of
this subparagraph--
(I) the term ``annual
adjustment percentage'' as
applied to an award year, is
equal to the estimated
percentage change in the
Consumer Price Index (as
determined by the Secretary,
using the definition in section
478(f)) for the most recent
calendar year ending prior to
the beginning of that award
year; and
(II) the term ``total maximum
Federal Pell Grant'' as applied
to a preceding award year, is
equal to the sum of--
(aa) the maximum
Federal Pell Grant for
which a student is
eligible during an
award year, as
specified in the last
enacted appropriation
Act applicable to that
preceding award year;
and
(bb) the amount of
the increase in the
maximum Federal Pell
Grant required by this
paragraph for that
preceding award year.
(D) Program requirements and operations
otherwise unaffected.--Except as provided in
subparagraphs (B) and (C), nothing in this
paragraph shall be construed to alter the
requirements and operations of the Federal Pell
Grant Program as authorized under this section,
or authorize the imposition of additional
requirements or operations for the
determination and allocation of Federal 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 (respectively) the
amount required to provide the amounts
specified in subparagraph (B).
(F) Availability of funds.--The amounts made
available by subparagraph (A) for any fiscal
year shall be available beginning on October 1
of that fiscal year, and shall remain available
through September 30 of the succeeding fiscal
year.
(8)(A) Effective in the 2017-2018 award year and
thereafter, the Secretary shall award an eligible
student not more than one and one-half Federal Pell
Grants during a single award year to permit such
student to work toward completion of an eligible
program if, during that single award year, the
student--
(i) has received a Federal Pell Grant
for an award year and is enrolled in an
eligible program for one or more
additional payment periods during the
same award year that are not otherwise
fully covered by the student's Federal
Pell Grant; and
(ii) is enrolled on at least a half-
time basis while receiving any funds
under this section.
(B) In the case of a student receiving more
than one Federal Pell Grant in a single award
year under subparagraph (A), the total amount
of Federal Pell Grants awarded to such student
for the award year may exceed the maximum basic
grant level specified in the appropriate
appropriations Act for such award year.
(C) Any period of study covered by a Federal
Pell Grant awarded under subparagraph (A) shall
be included in determining a student's duration
limit under subsection (c)(5).
(D) In any case where an eligible student is
receiving a Federal Pell Grant for a payment
period that spans two award years, the
Secretary shall allow the eligible institution
in which the student is enrolled to determine
the award year to which the additional period
shall be assigned, as it determines is most
beneficial to students.
(9) Federal pell grant bonus.--
(A) In general.--Notwithstanding any other
provision of this subsection and from the
amounts made available pursuant to paragraph
(7)(A)(iii) for the purposes of this paragraph,
an eligible student who is receiving a Federal
Pell Grant for an award year shall receive an
amount in addition to such Federal Pell Grant
for each payment period of such award year for
which the student--
(i) is receiving such Federal Pell
Grant as long as the amount of such
Federal Pell Grant does not exceed the
maximum amount of a Federal Pell Grant
award determined under paragraph (2)(A)
for such award year; and
(ii) is carrying a work load that--
(I) is greater than the
normal full-time work load for
the course of study the student
is pursuing, as determined by
the institution of higher
education; and
(II) will lead to the
completion of not less than 30
credit hours (or the equivalent
coursework) upon the completion
of the final payment period for
which the student is receiving
the Federal Pell Grant
described in clause (i).
(B) Amount of bonus.--The amount provided to
an eligible student under subparagraph (A) for
an award year may not exceed $300, which shall
be equally divided among each payment period of
such award year described in clauses (i) and
(ii) of subparagraph (A).
(c) Period of Eligibility for Grants.--(1) The period during
which a student may receive Federal Pell Grants shall be the
period required for the completion of the first undergraduate
baccalaureate course of study being pursued by that student at
the institution at which the student is in attendance except
that any period during which the student is enrolled in a
noncredit or remedial course of study as defined in paragraph
(2) shall not be counted for the purpose of this paragraph.
(2) Nothing in this section shall exclude from eligibility
courses of study which are noncredit or remedial in nature
(including courses in English language instruction) which are
determined by the institution to be necessary to help the
student be prepared for the pursuit of a first undergraduate
baccalaureate degree or certificate or, in the case of courses
in English language instruction, to be necessary to enable the
student to utilize already existing knowledge, training, or
skills. Nothing in this section shall exclude from eligibility
programs of study abroad that are approved for credit by the
home institution at which the student is enrolled.
(3) No student is entitled to receive Pell Grant payments
concurrently from more than one institution or from the
Secretary and an institution.
(4) Notwithstanding paragraph (1), the Secretary may allow,
on a case-by-case basis, a student to receive a basic grant if
the student--
(A) is carrying at least one-half the normal full-
time work load for the course of study the student is
pursuing, as determined by the institution of higher
education; and
(B) is enrolled or accepted for enrollment in a
postbaccalaureate program that does not lead to a
graduate degree, and in courses required by a State in
order for the student to receive a professional
certification or licensing credential that is required
for employment as a teacher in an elementary school or
secondary school in that State,
except that this paragraph shall not apply to a student who is
enrolled in an institution of higher education that offers a
baccalaureate degree in education.
(5) The period during which a student may receive Federal
Pell Grants shall not exceed 12 semesters, or the equivalent of
12 semesters, as determined by the Secretary by regulation.
Such regulations shall provide, with respect to a student who
received a Federal Pell Grant for a term but was enrolled at a
fraction of full-time, that only that same fraction of such
semester or equivalent shall count towards such duration
limits.
(6)(A) The Secretary shall issue to each student receiving a
Federal Pell Grant, an annual status report which shall--
(i) inform the student of the remaining period during
which the student may receive Federal Pell Grants in
accordance with paragraph (5), and provide access to a
calculator to assist the student in making such
determination;
(ii) include an estimate of the Federal Pell Grant
amounts which may be awarded for such remaining period
based on the student's award amount determined under
subsection (b)(2)(A) for the most recent award year;
(iii) explain how the estimate was calculated and any
assumptions underlying the estimate;
(iv) explain that the estimate may be affected if
there is a change--
(I) in the student's financial circumstances;
or
(II) the availability of Federal funding; and
(v) describe how the remaining period during which
the student may receive Federal Pell Grants will be
affected by whether the student is enrolled as a full-
time student.
(B) Nothing in this paragraph shall be construed to prohibit
an institution from offering additional counseling to a student
with respect to Federal Pell Grants, but such counseling shall
not delay or impede disbursement of a Federal Pell Grant award
to the student.
(d) Applications for Grants.--(1) The Secretary shall from
time to time set dates by which students shall file
applications for Federal Pell Grants under this subpart.
(2) Each student desiring a Federal Pell Grant for any year
shall file an application therefor containing such information
and assurances as the Secretary may deem necessary to enable
the Secretary to carry out the functions and responsibilities
of this subpart.
(e) Distribution of Grants to Students.--[Payments under this
section shall be made in accordance with regulations
promulgated by the Secretary for such purpose, in such manner
as will best accomplish the purpose of this section.] Payments
under this section shall be made in the same manner as
disbursements under section 465(a). Any disbursement allowed to
be made by crediting the student's account shall be limited to
tuition and fees and, in the case of institutionally owned
housing, room and board. The student may elect to have the
institution provide other such goods and services by crediting
the student's account.
(f) Calculation of Eligibility.--(1) Each contractor
processing applications for awards under this subpart
(including a central processor, if any, designated by the
Secretary) shall, in a timely manner, furnish to the student
financial aid administrator (at each institution of higher
education which a student awarded a Federal Pell Grant under
this subpart is attending), as a part of its regular output
document, the expected family contribution for each such
student. Each such student financial aid administrator shall--
(A) examine and assess the data used to calculate the
expected family contribution of the student furnished
pursuant to this subsection;
(B) recalculate the expected family contribution of
the student if there has been a change in circumstances
of the student or in the data submitted;
(C) make the award to the student in the correct
amount; and
(D) after making such award report the corrected data
to such contractor and to a central processor (if any)
designated by the Secretary for a confirmation of the
correct computation of amount of the expected family
contribution for each such student.
(2) Whenever a student receives an award under this subpart
that, due to recalculation errors by the institution of higher
education, is in excess of the amount which the student is
entitled to receive under this subpart, such institution of
higher education shall pay to the Secretary the amount of such
excess unless such excess can be resolved in a subsequent
disbursement to the institution.
(3) Each contractor processing applications for awards under
this subpart shall for each academic year after academic year
1986-1987 prepare and submit a report to the Secretary on the
correctness of the computations of amount of the expected
family contribution, and on the accuracy of the questions on
the application form under this subpart for the previous
academic year for which the contractor is responsible. The
Secretary shall transmit the report, together with the comments
and recommendations of the Secretary, to the Committee on
Appropriations of the Senate, the Committee on Appropriations
of the House of Representatives, and the authorizing
committees.
(g) Insufficient Appropriations.--If, for any fiscal year,
the funds appropriated for payments under this subpart are
insufficient to satisfy fully all entitlements, as calculated
under subsection (b) (but at the maximum grant level specified
in such appropriation), the Secretary shall promptly transmit a
notice of such insufficiency to each House of the Congress, and
identify in such notice the additional amount that would be
required to be appropriated to satisfy fully all entitlements
(as so calculated at such maximum grant level).
(h) Use of Excess Funds.--(1) If, at the end of a fiscal
year, the funds available for making payments under this
subpart exceed the amount necessary to make the payments
required under this subpart to eligible students by 15 percent
or less, then all of the excess funds shall remain available
for making payments under this subpart during the next
succeeding fiscal year.
(2) If, at the end of a fiscal year, the funds available for
making payments under this subpart exceed the amount necessary
to make the payments required under this subpart to eligible
students by more than 15 percent, then all of such funds shall
remain available for making such payments but payments may be
made under this paragraph only with respect to entitlements for
that fiscal year.
(i) Treatment of Institutions and Students Under Other
Laws.--Any institution of higher education which enters into an
agreement with the Secretary to disburse to students attending
that institution the amounts those students are eligible to
receive under this subpart shall not be deemed, by virtue of
such agreement, a contractor maintaining a system of records to
accomplish a function of the Secretary. Recipients of Pell
Grants shall not be considered to be individual grantees for
purposes of subtitle D of title V of Public Law 100-690.
(j) Institutional Ineligibility Based on Default Rates.--
(1) In general.--No institution of higher education
shall be an eligible institution for purposes of this
subpart if such institution of higher education is
ineligible to participate in a loan program under part
B or D as a result of a final default rate
determination made by the Secretary under part B or D
after the final publication of cohort default rates for
fiscal year 1996 or a succeeding fiscal year.
(2) Sanctions subject to appeal opportunity.--No
institution may be subject to the terms of this
subsection unless the institution has had the
opportunity to appeal the institution's default rate
determination under regulations issued by the Secretary
for the loan program authorized under part B or D, as
applicable. This subsection shall not apply to an
institution that was not participating in the loan
program authorized under part B or D on the date of
enactment of the Higher Education Amendments of 1998,
unless the institution subsequently participates in the
loan programs.
(3) Sunset.--The provisions of this subsection shall
not apply after the transition period described in
section 481B(e)(3).
(k) Prevention of Fraud.--
(1) Prohibition of awards.--
(A) In general.--No Federal Pell Grant shall
be awarded under this subpart to any student
who--
(i) received a Federal Pell Grant for
3 award years; and
(ii) for each such award year, was
enrolled in an institution of higher
education and did not earn any academic
credit for which the Federal Pell Grant
was provided.
(B) Waiver.--The student financial aid
administrator at an institution of higher
education may waive the requirement of
subparagraph (A) for a student, if the
financial aid administrator--
(i) determines that the student was
unable to earn any academic credit as
described in subparagraph (A)(ii) due
to circumstances beyond the student's
control; and
(ii) makes and documents such a
determination on an individual student
basis.
(C) Definition of circumstances beyond a
student's control.--For purposes of this
paragraph, the term ``circumstances beyond the
student's control'', when used with respect to
an individual student--
(i) may include the student
withdrawing from an institution of
higher education due to illness; and
(ii) shall not include the student
withdrawing from an institution of
higher education to avoid a particular
grade.
(2) Secretarial discretion to stop awards.--With
respect to a student who receives a disbursement of a
Federal Pell Grant for a payment period of an award
year and whom the Secretary determines has had an
unusual enrollment history, the Secretary may prevent
such student from receiving any additional
disbursements of such Federal Pell Grant for such award
year until the student financial aid administrator at
the student's institution of higher education
determines that the student's enrollment history should
not be considered an unusual enrollment history.
(l) Report on Costs of Federal Pell Grant Program.--Not later
than October 31 of each year, the Secretary shall prepare and
submit a report to the authorizing committees that includes the
following information with respect to spending for the Federal
Pell Grant program for the preceding fiscal year:
(1) The total obligations and expenditures for the
program for such fiscal year.
(2) A comparison of the total obligations and
expenditures for the program for such fiscal year--
(A) to the most recently available
Congressional Budget Office baseline for the
program; and
(B) in the case in which such fiscal year is
fiscal year 2019, 2020, 2021, 2022, 2023, or
2024, to the Congressional Budget Office cost
estimate for the program included in the report
of the Committee on Education and the Workforce
of the House of Representatives accompanying
the PROSPER Act, as approved by the Committee.
(3) The total obligations and expenditures for the
maximum Federal Pell Grant for which a student is
eligible, as specified in the last enacted
appropriation Act applicable to such fiscal year.
(4) A comparison of the total obligations and
expenditures for the maximum Federal Pell Grant for
which a student is eligible, as specified in the last
enacted appropriation Act applicable to such fiscal
year--
(A) to the most recently available
Congressional Budget Office baseline for such
maximum Federal Pell Grant; and
(B) in the case in which such fiscal year is
fiscal year 2019, 2020, 2021, 2022, 2023, or
2024, to the Congressional Budget Office cost
estimate for such maximum Federal Pell Grant
included in the report of the Committee on
Education and the Workforce of the House of
Representatives accompanying the PROSPER Act,
as approved by the Committee.
(5) The total mandatory obligations and expenditures
for the amount of the increase in such maximum Federal
Pell Grant required by subsection (b)(7)(B) for such
fiscal year.
(6) A comparison of the total mandatory obligations
and expenditures for the amount of the increase in such
maximum Federal Pell Grant required by subsection
(b)(7)(B)--
(A) to the most recently available
Congressional Budget Office baseline for the
increase; and
(B) in the case in which such fiscal year is
fiscal year 2019, 2020, 2021, 2022, 2023, or
2024, to the Congressional Budget Office cost
estimate for the increase included in the
report of the Committee on Education and the
Workforce of the House of Representatives
accompanying the PROSPER Act, as approved by
the Committee.
(7) The total mandatory obligations and expenditures
for the Federal Pell Grant Bonus required by subsection
(b)(9) for such fiscal year.
(8) A comparison of the total mandatory obligations
and expenditures for the Federal Pell Grant Bonus
required by subsection (b)(9) for such fiscal year--
(A) to the most recently available
Congressional Budget Office baseline for such
bonus; and
(B) in the case in which such fiscal year is
fiscal year 2019, 2020, 2021, 2022, 2023, or
2024, to the Congressional Budget Office cost
estimate for such bonus included in the report
of the Committee on Education and the Workforce
of the House of Representatives accompanying
the PROSPER Act, as approved by the Committee.
(m) Report and Study on Federal Pell Grant Bonus.--
(1) Report.--
(A) In general.--The Secretary shall report
annually, in accordance with subparagraph (C),
on the Federal Pell Grant Bonus required by
subsection (b)(9).
(B) Elements.--Each report required under
subparagraph (A) shall include an assessment of
the following:
(i) The number of students who
received the Federal Pell Grant Bonus
under subsection (b)(9).
(ii) Of the students counted under
clause (i)--
(I) the number of such
students who obtained a degree
or certificate within the
normal time to completion for
the program for which the
Federal Pell Grant Bonus was
awarded; and
(II) the number of such
students who obtained a degree
or certificate--
(aa) within 4 years
of beginning the
program of study for
which the Federal Pell
Grant Bonus was
awarded;
(bb) within 5 years
of beginning such
program of study; and
(cc) within 6 years
of beginning such
program of study.
(C) Submission of reports.--
(i) Initial report.--Not later than
one year after the first cohort of
students described in subparagraph
(B)(i) is expected to complete their
program of study, the Secretary shall
submit to the authorizing committees an
initial report under subparagraph (A).
(ii) Annual updates.--On an annual
basis, the Secretary shall update the
report under subparagraph (A) and
submit the updated report to the
authorizing committees.
(2) Study.--Not later than 18 months after the date
of the submission of the initial report under paragraph
(1)(C)(i), the Comptroller General of the United States
shall complete a study on the impact of the Federal
Pell Grant Bonus required under subsection (b)(9). The
study shall include an assessment of the following:
(A) Of the students who received the Federal
Pell Grant Bonus, the number of such students
who had a lower volume of student loans upon
completion of their program of study compared
to students who received a Federal Pell Grant
but did not receive the Federal Pell Grant
Bonus.
(B) Whether students who received the Federal
Pell Grant Bonus took an increased courseload
as a result of the availability of the Federal
Pell Grant Bonus.
(C) The completion rate of students who
received the Federal Pell Grant Bonus compared
to the completion rate of students who did not
receive the bonus.
[SEC. 401A. ACADEMIC COMPETITIVENESS GRANTS.
[(a) Academic Competitiveness Grant Program Authorized.--The
Secretary shall award grants, in the amounts specified in
subsection (d)(1), to eligible students to assist the eligible
students in paying their college education expenses.
[(b) Designation.--A grant under this section--
[(1) for the first or second year of a program of
undergraduate education shall be known as an ``Academic
Competitiveness Grant''; and
[(2) for the third, fourth, or fifth year of a
program of undergraduate education shall be known as a
``National Science and Mathematics Access to Retain
Talent Grant'' or a ``National SMART Grant''.
[(c) Definition of Eligible Student.--In this section the
term ``eligible student'' means a student who, for the award
year for which the determination of eligibility is made for a
grant under this section--
[(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
[(3) in the case of a student enrolled or accepted
for enrollment in--
[(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)--
[(i)(I) successfully completes, after
January 1, 2006, but before July 1,
2009, a rigorous secondary school
program of study established by a State
or local educational agency and
recognized as such by the Secretary; or
[(II) successfully completes, on or
after July 1, 2009, a rigorous
secondary school program of study that
prepares students for college--
[(aa)(AA) that is recognized
as such by the official
designated for such recognition
consistent with State law; and
[(BB) about which the
designated official has
reported to the Secretary, at
such time as the Secretary may
reasonably require, in order to
assist financial aid
administrators to determine
that the student is an eligible
student under this section; or
[(bb) that is recognized as
such by the Secretary in
regulations promulgated to
carry out this section, as such
regulations were in effect on
May 6, 2008; and
[(ii) has not been previously
enrolled in a program of undergraduate
education, except as part of a
secondary school program of study;
[(B) the second 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 two years
for which the institution awards a
certificate)--
[(i)(I) successfully completes, after
January 1, 2005, but before July 1,
2009, a rigorous secondary school
program of study established by a State
or local educational agency and
recognized as such by the Secretary; or
[(II) successfully completes, on or
after July 1, 2009, a rigorous
secondary school program of study that
prepares students for college--
[(aa)(AA) that is recognized
as such by the official
designated for such recognition
consistent with State law; and
[(BB) about which the
designated official has
reported to the Secretary, at
such time as the Secretary may
reasonably require, in order to
assist financial aid
administrators to determine
that the student is an eligible
student under this section; or
[(bb) that is recognized as
such by the Secretary in
regulations promulgated to
carry out this section, as such
regulations were in effect on
May 6, 2008; and
[(ii) has obtained a cumulative grade
point average of at least 3.0 (or the
equivalent as determined under
regulations prescribed by the
Secretary) at the end of the first year
of such program of undergraduate
education;
[(C) the third or fourth year of a program of
undergraduate education at a four-year degree-
granting institution of higher education--
[(i) is certified by the institution
to be pursuing a major in--
[(I) the physical, life, or
computer sciences, mathematics,
technology, or engineering (as
determined 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
regulations prescribed by the
Secretary) in the coursework required
for the major described in clause (i);
[(D) the third or fourth year of a program of
undergraduate 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 determined under
regulations prescribed by the
Secretary) 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 education 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 education--
[(i) is certified by the institution
of higher education to be pursuing a
major in--
[(I) the physical, life, or
computer sciences, mathematics,
technology, or engineering (as
determined 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
regulations prescribed by the
Secretary) in the coursework required
for the major described in clause (i).
[(d) Grant Award.--
[(1) Amounts.--
[(A) In general.--The Secretary shall award a
grant under this section in the amount of--
[(i) $750 for an eligible student
under subsection (c)(3)(A);
[(ii) $1,300 for an eligible student
under subsection (c)(3)(B);
[(iii) $4,000 for an eligible student
under subparagraph (C) or (D) of
subsection (c)(3), for each of the two
years described in such subparagraphs;
or
[(iv) $4,000 for an eligible student
under subsection (c)(3)(E).
[(B) Limitation; ratable reduction.--
Notwithstanding subparagraph (A)--
[(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);
[(ii) the amount of such grant, in
combination with the Federal Pell Grant
assistance and other student financial
assistance available to such student,
shall not exceed the student's cost of
attendance;
[(iii) if the amount made available
under subsection (e) for any fiscal
year is less than the amount required
to be provided grants to all eligible
students in the amounts determined
under subparagraph (A) and clause (i)
of this subparagraph, then the amount
of the grant to each eligible student
shall be ratably reduced; and
[(iv) if additional amounts are appropriated
for any such fiscal year, such reduced amounts
shall be increased on the same basis as they
were reduced.
[(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 subsection (c)(3) for each year of
study described in such subsection.
[(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.
[(e) Funding.--
[(1) Authorization and appropriation of funds.--There
are authorized to be appropriated, and there are
appropriated, out of any money in the Treasury not
otherwise appropriated, for the Department of Education
to carry out this section--
[(A) $790,000,000 for fiscal year 2006;
[(B) $850,000,000 for fiscal year 2007;
[(C) $920,000,000 for fiscal year 2008;
[(D) $960,000,000 for fiscal year 2009; and
[(E) $1,010,000,000 for fiscal year 2010.
[(2) Availability of funds.--The amounts made
available by paragraph (1) for any fiscal year shall be
available from October 1 of that fiscal year and remain
available through September 30 of the succeeding fiscal
year.
[(f) Recognition of Programs of Study.--The Secretary shall
recognize not less than one rigorous secondary school program
of study in each State under subparagraphs (A) and (B) of
subsection (c)(3) for the purpose of determining student
eligibility under such subsection.
[(g) Sunset Provision.--The authority to make grants under
this section shall expire at the end of award year 2010-2011.]
Subpart 2--Federal Early Outreach and Student Services Programs
CHAPTER 1--FEDERAL TRIO PROGRAMS
SEC. 402A. PROGRAM AUTHORITY; AUTHORIZATION OF APPROPRIATIONS.
(a) Grants and Contracts Authorized.--The Secretary shall, in
accordance with the provisions of this chapter, carry out a
program of making grants and contracts designed to identify
qualified individuals from disadvantaged backgrounds, to
prepare them for a program of postsecondary education, to
provide support services for such students who are pursuing
programs of postsecondary education, to motivate and prepare
students for doctoral programs, and to train individuals
serving or preparing for service in programs and projects so
designed.
(b) Recipients, Duration, and Size.--
(1) Recipients.--For the purposes described in
subsection (a), the Secretary is authorized, without
regard to section 3709 of the Revised Statutes (41
U.S.C. 5), to make grants to, and contracts with,
institutions of higher education, public and private
agencies and organizations, including community-based
organizations with experience in serving disadvantaged
youth, combinations of such institutions, agencies and
organizations, and, as appropriate to the purposes of
the program, secondary schools, for planning,
developing, or carrying out one or more of the services
assisted under this chapter.
(2) Duration.--Grants or contracts made under this
chapter shall be awarded for a period of 5 years,
except that--
(A) in order to synchronize the awarding of
grants for programs under this chapter, the
Secretary may, under such terms as are
consistent with the purposes of this chapter,
provide a one-time, limited extension of the
length of such an award;
(B) grants made under section 402G shall be
awarded for a period of 2 years; and
(C) grants under section 402H shall be
awarded for a period determined by the
Secretary.
(3) Minimum grants.--Unless the institution or agency
requests a smaller amount, an individual grant
authorized under this chapter shall be awarded in an
amount that is not less than $200,000, except that an
individual grant authorized under section 402G shall be
awarded in an amount that is not less than $170,000.
(c) Procedures for Awarding Grants and Contracts.--
(1) Application requirements.--An eligible entity
that desires to receive a grant or contract under this
chapter shall submit an application to the Secretary in
such manner and form, and containing such information
and assurances, as the Secretary may reasonably
require.
(2) Considerations.--
[(A) Prior experience.--In making grants
under this chapter, the Secretary shall
consider each applicant's prior experience of
high quality service delivery, as determined
under subsection (f), under the particular
program for which funds are sought. The level
of consideration given the factor of prior
experience shall not vary from the level of
consideration given such factor during fiscal
years 1994 through 1997, except that grants
made under section 402H shall not be given
prior experience consideration.]
(A) Accountability for outcomes.--In making
grants under this chapter, the Secretary shall
comply with the following requirements:
(i) The Secretary shall consider each
applicant's prior success in achieving
high quality service delivery, as
determined under subsection (f), under
the particular program for which funds
are sought. The level of consideration
given the factor of prior success in
achieving high quality service delivery
shall not vary from the level of
consideration given such factor during
fiscal years 1994 through 1997, except
that grants made under section 402H
shall not be given such consideration.
(ii) The Secretary shall not give
points for prior success in achieving
high quality service delivery to any
current grantee that, during the then
most recent period for which funds were
provided, did not meet or exceed two or
more objectives established in the
eligible entity's application based on
the performance measures described in
subsection (f).
(iii) From the amounts awarded under
subsection (g) for a program under this
chapter (other than a program under
sections 402G and 402H) for any fiscal
year in which the Secretary conducts a
competition for the award of grants or
contracts under such programs, the
Secretary shall reserve not less than
10 percent of such available amount to
award grants or contracts to applicants
who have not previously received a
grant or contract under this chapter.
If the Secretary determines that there
are an insufficient number of qualified
applicants to use the full amount
reserved under the preceding sentence,
the Secretary shall use the remainder
of such amount to award grants or
contracts to applicants who have
previously received a grant or contract
under this chapter.
(B) Participant need.--In making grants under
this chapter, the Secretary shall consider the
number, percentages, and needs of eligible
participants in the area, institution of higher
education, or secondary school to be served to
aid such participants in preparing for,
enrolling in, or succeeding in postsecondary
education, as appropriate to the particular
program for which the eligible entity is
applying.
(3) Order of awards; program fraud.--(A) Except with
respect to grants made under sections 402G and 402H and
[as provided in subparagraph (B)] as provided in
subparagraph (C), the Secretary shall award grants and
contracts under this chapter in the order of the scores
received by the application for such grant or contract
in the peer review process required under paragraph (4)
and adjusted for prior [experience] success in
achieving high quality service delivery in accordance
with paragraph (2) of this subsection.
(B) To ensure that congressional priorities in
conducting competitions for grants and contracts under
this chapter are implemented, the Secretary shall not
impose additional criteria for the prioritization of
applications for such grants or contracts (including
additional competitive, absolute, or other criteria)
beyond the criteria described in this chapter.
[(B)] (C) The Secretary shall not provide assistance
to a program otherwise eligible for assistance under
this chapter, if the Secretary has determined that such
program has involved the fraudulent use of funds under
this chapter.
(4) Peer review process.--(A) The Secretary shall
ensure that, to the extent practicable, members of
groups underrepresented in higher education, including
African Americans, Hispanics, Native Americans, Alaska
Natives, Asian Americans, and Native American Pacific
Islanders (including Native Hawaiians), are represented
as readers of applications submitted under this
chapter. The Secretary shall also ensure that persons
from urban and rural backgrounds are represented as
readers.
(B) The Secretary shall ensure that each application
submitted under this chapter is read by at least three
readers who are not employees of the Federal Government
(other than as readers of applications).
(5) Number of applications for grants and
contracts.--The Secretary shall not limit the number of
applications submitted by an entity under any program
authorized under this chapter if the additional
applications describe programs serving different
populations or different campuses.
(6) Coordination with other programs for
disadvantaged students.--[The Secretary shall
encourage]
(A) The Secretary shall encourage
coordination of programs assisted under this
chapter with other programs for disadvantaged
students operated by the sponsoring institution
or agency, regardless of the funding source of
such programs. The Secretary shall not limit an
entity's eligibility to receive funds under
this chapter because such entity sponsors a
program similar to the program to be assisted
under this chapter, regardless of the funding
source of such program[.], as long as the
program is serving a different population or a
different campus. [The Secretary shall permit]
(B) The Secretary shall permit the Director
of a program receiving funds under this chapter
to administer one or more additional programs
for disadvantaged students operated by the
sponsoring institution or agency, regardless of
the funding sources of such programs. The
Secretary shall, as appropriate, require each
applicant for funds under [the programs
authorized by] sections 402B, 402C, 402D, and
402F of this chapter to identify and make
available services under such program,
including mentoring, tutoring, and other
services provided by such program, to foster
care youth (including youth in foster care and
youth who have left foster care after reaching
age 13) or to homeless children and youths as
defined in section 725 of the McKinney-Vento
Homeless Assistance Act.
(7) Application status.--The Secretary shall inform
each entity operating programs under this chapter
regarding the status of their application for continued
funding at least [8 months] 90 days prior to the
expiration of the grant or contract. The Secretary, in
the case of an entity that is continuing to operate a
successful program under this chapter, shall ensure
that the start-up date for a new grant or contract for
such program immediately follows the termination of the
preceding grant or contract so that no interruption of
funding occurs for such successful reapplicants. The
Secretary shall inform each entity requesting
assistance under this chapter for a new program
regarding the status of their application at least [8
months] 90 days prior to the proposed startup date of
such program.
(8) Review and notification by the secretary.--
(A) Guidance.--[Not later than 180 days after
the date of enactment of the Higher Education
Opportunity Act,] Not later than 90 days before
the commencement of each competition for a
grant under this chapter, the Secretary shall
issue nonregulatory guidance regarding the
rights and responsibilities of applicants with
respect to the application and evaluation
process for programs and projects assisted
under this chapter, including applicant access
to peer review comments. The guidance shall
describe the procedures for the submission,
processing, and scoring of applications for
grants under this chapter, including--
(i) the responsibility of applicants
to submit materials in a timely manner
and in accordance with the processes
established by the Secretary under the
authority of the General Education
Provisions Act;
(ii) steps the Secretary will take to
ensure that the materials submitted by
applicants are processed in a proper
and timely manner;
(iii) steps the Secretary will take
to ensure that [prior experience points
for high quality service delivery are
awarded] application scores are
adjusted for prior success in achieving
high quality service delivery in an
accurate and transparent manner;
(iv) steps the Secretary will take to
ensure the quality and integrity of the
peer review process, including
assurances that peer reviewers will
consider applications for grants under
this chapter in a thorough and complete
manner consistent with applicable
Federal law; and
(v) steps the Secretary will take to
ensure that the final score of an
application, including [prior
experience points for] the adjustment
in scores for prior success in
achieving high quality service delivery
and points awarded through the peer
review process, is determined in an
accurate and transparent manner.
[(B) Updated guidance.--Not later than 45
days before the date of the commencement of
each competition for a grant under this chapter
that is held after the expiration of the 180-
day period described in subparagraph (A), the
Secretary shall update and publish the guidance
described in such subparagraph.]
[(C)] (B) Review.--
(i) In general.--With respect to any
competition for a grant under this
chapter, an applicant may request a
review by the Secretary if the
applicant--
(I) has evidence of a
specific technical,
administrative, or scoring
error made by the Department,
an agent of the Department, or
a peer reviewer, with respect
to the scoring or processing of
a submitted application; and
(II) has otherwise met all of
the requirements for submission
of the application.
(ii) Technical or administrative
error.--In the case of evidence of a
technical or administrative error
listed in clause (i)(I), the Secretary
shall review such evidence and provide
a timely response to the applicant. If
the Secretary determines that a
technical or administrative error was
made by the Department or an agent of
the Department, the application of the
applicant shall be reconsidered in the
peer review process for the applicable
grant competition.
(iii) Scoring error.--In the case of
evidence of a scoring error listed in
clause (i)(I), when the error relates
to either [prior experience points for]
points for prior success in achieving
high quality service delivery or to the
final score of an application, the
Secretary shall--
(I) review such evidence and
provide a timely response to
the applicant; and
(II) if the Secretary
determines that a scoring error
was made by the Department or a
peer reviewer, adjust the
[prior experience points]
points for prior success in
achieving high quality service
delivery or final score of the
application appropriately and
quickly, so as not to interfere
with the timely awarding of
grants for the applicable grant
competition.
(iv) Error in peer review process.--
(I) Referral to secondary
review.--In the case of a peer
review process error listed in
clause (i)(I), if the Secretary
determines that points were
withheld for criteria not
required in Federal statute,
regulation, or guidance
governing a program assisted
under this chapter or the
application for a grant for
such program, or determines
that information pertaining to
selection criteria was wrongly
determined to be missing from
an application by a peer
reviewer, then the Secretary
shall refer the application to
a secondary review panel.
(II) Timely review;
replacement score.--The
secondary review panel
described in subclause (I)
shall conduct a secondary
review in a timely fashion, and
the score resulting from the
secondary review shall replace
the score from the initial peer
review.
(III) Composition of
secondary review panel.--The
secondary review panel shall be
composed of reviewers each of
whom--
(aa) did not review
the application in the
original peer review;
(bb) is a member of
the cohort of peer
reviewers for the grant
program that is the
subject of such
secondary review; and
(cc) to extent
practicable, has
conducted peer reviews
in not less than two
previous competitions
for the grant program
that is the subject of
such secondary review.
(IV) Final score.--The final
peer review score of an
application subject to a
secondary review under this
clause shall be adjusted
appropriately and quickly using
the score awarded by the
secondary review panel, so as
not to interfere with the
timely awarding of grants for
the applicable grant
competition.
(V) Qualification for
secondary review.--To qualify
for a secondary review under
this clause, an applicant shall
have evidence of a scoring
error and demonstrate that--
(aa) points were
withheld for criteria
not required in
statute, regulation, or
guidance governing the
Federal TRIO programs
or the application for
a grant for such
programs; or
(bb) information
pertaining to selection
criteria was wrongly
determined to be
missing from the
application.
(v) Finality.--
(I) In general.--A
determination by the Secretary
under clause (i), (ii), or
(iii) shall not be reviewable
by any officer or employee of
the Department.
(II) Scoring.--The score
awarded by a secondary review
panel under clause (iv) shall
not be reviewable by any
officer or employee of the
Department other than the
Secretary.
(vi) Funding of applications with
certain adjusted scores.--To the extent
feasible based on the availability of
appropriations, the Secretary shall
fund applications with scores that are
adjusted upward under clauses (ii),
(iii), and (iv) to equal or exceed the
minimum cut off score for the
applicable grant competition from funds
reserved under subsection (g).
(9) Matching requirement.--
(A) In general.--The Secretary shall not
approve an application submitted under section
402B, 402C, 402D, 402E, or 402F unless such
application--
(i) provides that the eligible entity
will provide, from State, local,
institutional, or private funds, not
less than 20 percent of the cost of the
program, which matching funds may be
provided in cash or in kind and may be
accrued over the full duration of the
grant award period, except that the
eligible entity shall make substantial
progress towards meeting the matching
requirement in each year of the grant
award period;
(ii) specifies the methods by which
matching funds will be paid; and
(iii) includes provisions designed to
ensure that funds provided under this
chapter shall supplement and not
supplant funds expended for existing
programs.
(B) Special rule.--Notwithstanding the
matching requirement described in subparagraph
(A), the Secretary may by regulation modify the
percentage requirement described in
subparagraph (A). The Secretary may approve an
eligible entity's request for a reduced match
percentage--
(i) at the time of application if the
eligible entity demonstrates
significant economic hardship that
precludes the eligible entity from
meeting the matching requirement; or
(ii) in response to a petition by an
eligible entity subsequent to a grant
award under section 402B, 402C, 402D,
402E, or 402F if the eligible entity
demonstrates that the matching funds
described in its application are no
longer available and the eligible
entity has exhausted all revenues for
replacing such matching funds.
(d) Outreach.--
(1) In general.--The Secretary shall conduct outreach
activities to ensure that entities eligible for
assistance under this chapter submit applications
proposing programs that serve geographic areas and
eligible populations which have been underserved by the
programs assisted under this chapter.
(2) Notice.--In carrying out the provisions of
paragraph (1), the Secretary shall notify the entities
described in subsection (b) of the availability of
assistance under this subsection not less than 120 days
prior to the deadline for submission of applications
under this chapter and shall consult national, State,
and regional organizations about candidates for
notification.
(3) Technical assistance.--The Secretary shall
provide technical training to applicants for projects
and programs authorized under this chapter. The
Secretary shall give priority to serving programs and
projects that serve geographic areas and eligible
populations which have been underserved by the programs
assisted under this chapter. Technical training
activities shall include the provision of information
on authorizing legislation, goals and objectives of the
program, required activities, eligibility requirements,
the application process and application deadlines, and
assistance in the development of program proposals and
the completion of program applications. Such training
shall be furnished at conferences, seminars, and
workshops to be conducted at not less than 10 sites
throughout the United States to ensure that all areas
of the United States with large concentrations of
eligible participants are served. In addition, the
Secretary shall host at least one virtual, interactive
education session using telecommunications technology
to ensure that any interested applicants have access to
technical assistance.
(4) Special rule.--The Secretary may contract with
eligible entities to conduct the outreach activities
described in this subsection.
(e) Documentation of Status as a Low-Income Individual.--(1)
Except in the case of an independent student, as defined in
section 480(d), documentation of an individual's status
pursuant to subsection (h)(4) shall be made by providing the
Secretary with--
(A) a signed statement from the individual's parent
or legal guardian;
(B) verification from another governmental source;
(C) a signed financial aid application; [or]
(D) a signed United States or Puerto Rico income tax
return[.]; or
(E) documentation that the student has been
determined to be eligible for a Federal Pell Grant
under section 401.
(2) In the case of an independent student, as defined in
section 480(d), documentation of an individual's status
pursuant to subsection (h)(4) shall be made by providing the
Secretary with--
(A) a signed statement from the individual;
(B) verification from another governmental source;
(C) a signed financial aid application; [or]
(D) a signed United States or Puerto Rico income tax
return[.]; or
(E) documentation that the student has been
determined to be eligible for a Federal Pell Grant
under section 401.
(3) Notwithstanding this subsection and subsection (h)(4),
individuals who are foster care youth (including youth in
foster care and youth who have left foster care after reaching
age 13), or homeless children and youths as defined in section
725 of the McKinney-Vento Homeless Assistance Act, shall be
eligible to participate in programs under sections 402B, 402C,
402D, and 402F.
(f) Outcome Criteria.--
(1) Use for [prior experience] accountability for
outcomes determination.--For competitions for grants
under this chapter that begin on or after January 1,
2009, the Secretary shall determine an eligible
entity's prior [experience of] success in achieving
high quality service delivery, as required under
subsection (c)(2), based on the outcome criteria
described in paragraphs (2) and (3).
(2) Disaggregation of relevant data.--The outcome
criteria under this subsection shall be disaggregated
by low-income students, first generation college
students, and individuals with disabilities, in the
schools and institutions of higher education served by
the program to be evaluated.
(3) Contents of outcome criteria.--The outcome
criteria under this subsection shall measure, annually
and for longer periods, the quality and effectiveness
of programs authorized under this chapter and shall
include the following:
(A) For programs authorized under section
402B, the extent to which the eligible entity
met or exceeded the entity's objectives
established in the entity's application for
such program regarding--
(i) the delivery of service to a
total number of students served by the
program;
(ii) the continued secondary school
enrollment of such students;
(iii) the graduation of such students
from secondary school with a regular
secondary school diploma in the
standard number of years;
(iv) the completion by such students
of a [rigorous secondary school program
of study that will make such students
eligible for programs such as the
Academic Competitiveness Grants
Program] secondary school program of
study that will prepare such students
to enter postsecondary education
without the need for remedial
education;
(v) the completion of financial aid
applications, including the Free
Application for Federal Student Aid
described in section 483(a) and college
admission applications;
[(v)] (vi) the enrollment of such
students in an institution of higher
education; and
[(vi)] (vii) to the extent
practicable, the postsecondary
education completion of such students.
[(B)] [For programs authorized under section
402C,] (B)(i) For programs authorized under
section 402C, except in the case of projects
that specifically target veterans, the extent
to which the eligible entity met or exceeded
the entity's objectives for such program
regarding--
[(i)] (I) the delivery of service to
a total number of students served by
the program, as agreed upon by the
entity and the Secretary for the
period;
[(ii)] (II) such students' school
performance, as measured by the grade
point average, or its equivalent;
[(iii)] (III) such students' academic
performance, as measured by
standardized tests, including tests
required by the students' State;
[(iv)] (IV) the retention in, and
graduation from, secondary school of
such students;
(V) the enrollment of such students
into a general educational development
(commonly known as a ``GED'') program;
[(v)] (VI) the completion by such
students of a [rigorous secondary
school program of study that will make
such students eligible for programs
such as the Academic Competitiveness
Grants Program] secondary school
program of study that will prepare such
students to enter postsecondary
education without the need for remedial
education;
(VII) the completion of financial aid
applications, including the Free
Application for Federal Student Aid
described in section 483(a) and college
admission applications;
[(vi)] (VIII) the enrollment of such
students in an institution of higher
education; and
[(vii)] (IX) to the extent
practicable, the postsecondary
education completion of such students.
(ii) For programs authorized under section
402C that specifically target veterans, the
extent to which the eligible entity met or
exceeded the entity's objectives for such
program with respect to--
(I) the delivery of service to a
total number of students served by the
program, as agreed upon by the entity
and the Secretary for the period;
(II) such students' academic
performance, as measured by
standardized tests;
(III) the retention and completion of
participants in the project;
(IV) the provision of assistance to
students served by the program in
completing financial aid applications,
including the Free Application for
Federal Student Aid described in
section 483(a) and college admission
applications;
(V) the enrollment of such students
in an institution of higher education;
and
(VI) to the extent practicable, the
postsecondary education completion rate
of such students.
(C) For programs authorized under section
402D--
(i) the extent to which the eligible
entity met or exceeded the entity's
objectives regarding the retention in
postsecondary education of the students
served by the program;
(ii)(I) in the case of an entity that
is an institution of higher education
offering a baccalaureate degree, the
extent to which the entity met or
exceeded the entity's objectives
regarding the percentage of such
students' completion of the degree
programs [in which such students were
enrolled] within six years of the
initial enrollment of such students in
the program; or
(II) in the case of an entity that is
an institution of higher education that
does not [offer a baccalaureate degree]
primarily offer baccalaureate degrees,
the extent to which such students met
or exceeded the entity's objectives
regarding--
(aa) the completion of a
degree or certificate by such
[students; and] students within
4 years of the initial
enrollment of such students in
the program; or
(bb) the transfer of such
students to institutions of
higher education that offer
baccalaureate degrees;
(iii) the extent to which the entity
met or exceeded the entity's objectives
regarding the delivery of service to a
total number of students, as agreed
upon by the entity and the Secretary
for the period; and
(iv) the extent to which the entity
met or exceeded the entity's objectives
regarding the students served under the
program who remain in good academic
standing.
(D) For programs authorized under section
402E, the extent to which the entity met or
exceeded the entity's objectives for such
program regarding--
(i) the delivery of service to a
total number of students served by the
program, as agreed upon by the entity
and the Secretary for the period;
(ii) the provision of appropriate
scholarly and research activities for
the students served by the program;
(iii) the acceptance and enrollment
of such students in graduate programs[;
and] within two years of receiving a
baccalaureate degree;
(iv) the continued enrollment of such
students in graduate [study and the
attainment of doctoral degrees by
former program participants.] study;
and
(v) the attainment of doctoral
degrees by former program participants
within 10 years of receiving a
baccalaureate degree.
(E) For programs authorized under section
402F, the extent to which the entity met or
exceeded the entity's objectives for such
program regarding--
(i) the enrollment of students
without a secondary school diploma or
its recognized equivalent, who were
served by the program, in programs
leading to such diploma or equivalent;
(ii) the enrollment, or re-
enrollment, of secondary school
graduates who were served by the
program in programs of postsecondary
education;
(iii) the delivery of service to a
total number of students served by the
program, as agreed upon by the entity
and the Secretary for the period; and
(iv) the provision of assistance to
students served by the program in
completing financial aid applications
and college admission applications.
(4) Measurement of progress.--In order to determine
the extent to which each outcome criterion described in
paragraph (2) or (3) is met or exceeded, the Secretary
shall compare the agreed upon target for the criterion,
as established in the eligible entity's application
approved by the Secretary, with the results for the
criterion, measured as of the last day of the
applicable time period for the determination for the
outcome criterion.
(g) Authorization of Appropriations.--For the purpose of
making grants and contracts under this chapter, there are
authorized to be appropriated [$900,000,000 for fiscal year
2009 and such sums as may be necessary for] $900,000,000 for
fiscal year 2019 and each of the five succeeding fiscal years.
Of the amount appropriated under this chapter, the Secretary
may use [no more than \1/2\ of 1] not more than 1 percent of
such amount to obtain additional qualified readers and
additional staff to review applications, to increase the level
of oversight monitoring, to support impact studies, program
assessments and reviews, [and to provide technical] to provide
technical assistance to potential applicants and current
grantees, and to support applications funded under the process
outlined in subsection (c)(8)(B). [In expending these funds,
the Secretary shall give priority to the additional
administrative requirements provided in the Higher Education
Amendments of 1992, to outreach activities, and to obtaining
additional readers.]
(h) Definitions.--For the purpose of this chapter:
(1) Different campus.--The term ``different campus''
means a site of an institution of higher education
that--
(A) is geographically apart from the main
campus of the institution;
(B) is permanent in nature; and
(C) offers courses in educational programs
leading to a degree, certificate, or other
recognized educational credential.
(2) Different population.--The term ``different
population'' means a group of individuals that an
eligible entity desires to serve through an application
for a grant under this chapter, and that--
(A) is separate and distinct from any other
population that the entity has applied for a
grant under this chapter to serve; or
(B) while sharing some of the same needs as
another population that the eligible entity has
applied for a grant under this chapter to
serve, has distinct needs for specialized
services.
(3) First generation college student.--The term
``first generation college student'' means--
(A) an individual both of whose parents did
not complete a baccalaureate degree; or
(B) in the case of any individual who
regularly resided with and received support
from only one parent, an individual whose only
such parent did not complete a baccalaureate
degree.
(4) Low-income individual.--The term ``low-income
individual'' means an individual from a family whose
taxable income for the preceding year did not exceed
150 percent of an amount equal to the poverty level
determined by using criteria of poverty established by
the Bureau of the Census.
[(5) Veteran eligibility.--No veteran] (i) Veteran
Eligibility._(1) No Veteran shall be deemed ineligible to
participate in any program under this chapter by reason of such
individual's age who--
(A) served on active duty for a period of more than
180 days and was discharged or released therefrom under
conditions other than dishonorable;
(B) served on active duty and was discharged or
released therefrom because of a service connected
disability;
(C) was a member of a reserve component of the Armed
Forces called to active duty for a period of more than
30 days; or
(D) was a member of a reserve component of the Armed
Forces who served on active duty in support of a
contingency operation (as that term is defined in
section 101(a)(13) of title 10, United States Code) on
or after September 11, 2001.
[(6) Waiver.--] (2) The Secretary may waive the service
requirements in subparagraph (A), (B), or (C) [of paragraph
(5)] of paragraph (1) if the Secretary determines the
application of the service requirements to a veteran will
defeat the purpose of a program under this chapter.
SEC. 402B. TALENT SEARCH.
(a) Program Authority.--The Secretary shall carry out a
program to be known as talent search which shall be designed--
(1) to identify qualified youths with potential for
education at the postsecondary level and to encourage
such youths to complete secondary school and to
undertake a program of postsecondary education;
(2) to publicize the availability of, and facilitate
the application for, student financial assistance
available to persons who pursue a program of
postsecondary education; [and]
(3) to advise such youths on the postsecondary
institution selection process, including consideration
of the financial aid awards offered and the potential
loan burden required; and
[(3)] (4) to encourage persons who have not completed
programs of education at the secondary or postsecondary
level to enter or reenter, and complete such programs.
(b) Required Services.--Any project assisted under this
section shall provide--
(1) connections to high quality academic tutoring
services and, where necessary, remedial education
services, to enable students to complete secondary or
postsecondary courses;
(2) advice and assistance in secondary course
selection and, if applicable, initial postsecondary
course selection;
(3) assistance in preparing for college entrance
examinations and completing college admission
applications;
(4)(A) information on the full range of Federal
student financial aid programs and benefits (including
Federal Pell Grant awards and loan forgiveness) and
resources for locating public and private scholarships;
and
(B) assistance in completing financial aid
applications, including the Free Application for
Federal Student Aid described in section 483(a);
(5) guidance on and assistance in--
(A) secondary school reentry;
(B) alternative education programs for
secondary school dropouts that lead to the
receipt of a regular secondary school diploma;
(C) entry into general educational
development (GED) programs; or
(D) postsecondary education; and
[(6) connections to education or counseling services
designed to improve the financial literacy and economic
literacy of students or the students' parents,
including financial planning for postsecondary
education.]
(6) connections to education or counseling services
designed to--
(A) improve the financial literacy and
economic literacy of students or the students'
parents in order to aid them in making informed
decisions about how to best finance their
postsecondary education; and
(B) assist students and families regarding
career choice.
(c) Permissible Services.--Any project assisted under this
section may provide services such as--
(1) academic tutoring, which may include instruction
in reading, writing, study skills, mathematics,
science, and other subjects;
(2) personal and [career] academic counseling or
activities;
(3) information and activities designed to acquaint
youth with the range of career options available to the
youth;
(4) exposure to the campuses of institutions of
higher education, as well as cultural events, academic
programs, and other sites or activities not usually
available to disadvantaged youth;
(5) workshops and counseling for families of students
served;
(6) mentoring programs involving elementary or
secondary school teachers or counselors, faculty
members at institutions of higher education, students,
or any combination of such persons; and
(7) programs and activities as described in
subsection (b) or paragraphs (1) through (6) of this
subsection that are specially designed for students who
are limited English proficient, students from groups
that are traditionally underrepresented in
postsecondary education, students with disabilities,
students who are homeless children and youths (as such
term is defined in section 725 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a)), students
who are in foster care or are aging out of the foster
care system, or other disconnected students.
(d) Requirements for Approval of Applications.--In approving
applications for projects under this section for any fiscal
year the Secretary shall--
(1) require an assurance that not less than two-
thirds of the individuals participating in the project
proposed to be carried out under any application be
low-income individuals who are first generation college
students;
(2) require an assurance that the remaining youths
participating in the project proposed to be carried out
in any application be low-income individuals, first
generation college students, or students who have a
high risk for academic failure;
[(2)] (3) require that such participants be persons
who either have completed 5 years of elementary
education or are at least 11 years of age but not more
than 27 years of age, unless the imposition of any such
limitation with respect to any person would defeat the
purposes of this section or the purposes of section
402F;
[(3)] (4) require an assurance that individuals
participating in the project proposed in the
application do not have access to services from another
project funded under this section, section 402C, or
under section 402F; [and]
[(4)] (5) require an assurance that the project will
be located in a setting accessible to the persons
proposed to be served by the project[.]; and
(6) require the grantee to maintain, to the extent
practicable, a record of any services participants
receive during the project year from another program
under this chapter or other federally funded programs
serving similar populations to minimize the duplication
of services.
SEC. 402C. UPWARD BOUND.
(a) Program Authority.--The Secretary shall carry out a
program to be known as upward bound which shall be designed to
generate skills and motivation necessary for success in
education beyond secondary school.
(b) Required Services.--Any project assisted under this
section shall provide--
[(1) academic tutoring to enable students to complete
secondary or postsecondary courses, which may include
instruction in reading, writing, study skills,
mathematics, science, and other subjects;]
(1) academic tutoring, which may include instruction
in reading, writing, study skills, mathematics,
science, and other subjects and, where necessary,
remedial education services, to enable students to
complete secondary or postsecondary courses;
(2) advice and assistance in secondary and
postsecondary course selection;
(3) assistance in preparing for college entrance
examinations and completing college admission
applications;
(4)(A) information on the full range of Federal
student financial aid programs and benefits (including
Federal Pell Grant awards and loan forgiveness) and
resources for locating public and private scholarships;
and
(B) assistance in completing financial aid
applications, including the Free Application for
Federal Student Aid described in section 483(a); and
[(5) guidance on and assistance in--
[(A) secondary school reentry;
[(B) alternative education programs for
secondary school dropouts that lead to the
receipt of a regular secondary school diploma;
[(C) entry into general educational
development (GED) programs; or
[(D) postsecondary education; and
[(6) education or counseling services designed to
improve the financial literacy and economic literacy of
students or the students' parents, including financial
planning for postsecondary education.]
(5) education or counseling services designed to--
(A) improve the financial literacy and
economic literacy of students or the students'
parents in order to aid them in making informed
decisions about how to best finance their
postsecondary education; and
(B) assist students and their families
regarding career choice.
(c) Additional Required Services for Multiple-Year Grant
Recipients.--Any project assisted under this section which has
received funding for two or more years shall include, as part
of the core curriculum in the next and succeeding years,
instruction in mathematics through precalculus, laboratory
science, foreign language, composition, and literature.
(d) Permissible Services.--Any project assisted under this
section may provide such services as--
(1) exposure to cultural events, academic programs,
and other activities not usually available to
disadvantaged [youth] participants;
(2) information, activities, and instruction designed
to acquaint [youth participating in the project]
project participants with the range of career options
available to the youth;
(3) on-campus residential programs;
(4) mentoring programs involving elementary school or
secondary school teachers or counselors, faculty
members at institutions of higher education, students,
or any combination of such persons;
(5) work-study positions where [youth participating
in the project] project participants are exposed to
careers requiring a postsecondary degree;
(6) special services, including mathematics and
science preparation, to enable veterans to make the
transition to postsecondary education; and
(7) programs and activities as described in
subsection (b), subsection (c), or paragraphs (1)
through (6) of this subsection that are specially
designed for students who are limited English
proficient, students from groups that are traditionally
underrepresented in postsecondary education, students
with disabilities, students who are homeless children
and youths (as such term is defined in section 725 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a)), students who are in foster care or are aging
out of the foster care system, or other disconnected
students.
(e) Requirements for Approval of Applications.--In approving
applications for projects under this section for any fiscal
year, the Secretary shall--
(1) require an assurance that not less than two-
thirds of the youths participating in the project
proposed to be carried out under any application be
low-income individuals who are first generation college
students;
(2) require an assurance that the remaining youths
participating in the project proposed to be carried out
under any application be low-income individuals, first
generation college students, or students who have a
high risk for academic failure;
(3) require that there be a determination by the
institution, with respect to each participant in such
project that the participant has a need for academic
support in order to pursue successfully a program of
education beyond secondary school;
(4) require that such participants be persons who
have completed 8 years of elementary education and are
at least 13 years of age but not more than 19 years of
age, unless the imposition of any such limitation would
defeat the purposes of this section; [and]
(5) require an assurance that individuals
participating in the project proposed in any
application do not have access to services from another
project funded under this section, section 402B, or
section 402F;
[(5)] (6) require an assurance that no student will
be denied participation in a project assisted under
this section because the student will enter the project
after the 9th grade[.]; and
(7) for purposes of minimizing the duplication of
services, require that the grantee maintain, to the
extent practicable, a record of any services received
by participants during the program year from another
program funded under this chapter, or any other
Federally funded program that serves populations
similar to the populations served by programs under
this chapter.
(f) Maximum Stipends.--Youths participating in a project
proposed to be carried out under any application may be paid
stipends not in excess of $60 per month during the summer
school recess, for a period not to exceed three months, except
that youth participating in a work-study position under
subsection (d)(5) may be paid a stipend of $300 per month
during the summer school recess, for a period not to exceed
three months. Youths participating in a project proposed to be
carried out under any application may be paid stipends not in
excess of $40 per month during the remaining period of the
year.
[(g) 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
paragraph (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.]
[(h)] (g) Absolute Priority Prohibited in Upward Bound
Program.--Upon enactment of this subsection and except as
otherwise expressly provided by amendment to this section, the
Secretary shall not continue, implement, or enforce the
absolute priority for the Upward Bound Program published by the
Department of Education in the Federal Register on September
22, 2006 (71 Fed. Reg. 55447 et seq.). This subsection shall
not be applied retroactively. In implementing this subsection,
the Department shall allow the programs and participants chosen
in the grant cycle to which the priority applies to continue
their grants and participation without a further recompetition.
The entities shall not be required to apply the absolute
priority conditions or restrictions to future participants.
SEC. 402D. STUDENT SUPPORT SERVICES.
(a) Program Authority.--The Secretary shall carry out a
program to be known as student support services which shall be
designed--
(1) to increase college retention and graduation
rates for eligible students;
(2) to increase the transfer rates of eligible
students from 2-year to 4-year institutions;
(3) to foster an institutional climate supportive of
the success of low-income and first generation college
students, including students who are limited English
proficient, students from groups that are traditionally
underrepresented in postsecondary education, students
with disabilities, students who are homeless children
and youths (as such term is defined in section 725 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a)), students who are in foster care or are aging
out of the foster care system, or other disconnected
students; and
(4) to improve the financial literacy and economic
literacy of students, including--
(A) basic personal income, household money
management, and financial planning skills; and
(B) basic economic decisionmaking skills.
(b) Required Services.--A project assisted under this section
shall provide--
(1) academic tutoring, directly or through other
services provided by the institution, to enable
students to complete postsecondary courses, which may
include instruction in reading, writing, study skills,
mathematics, science, and other subjects;
(2) advice and assistance in postsecondary course
selection;
(3)(A) information on both the full range of Federal
student financial aid programs and benefits (including
Federal Pell Grant awards and loan forgiveness) and
resources for locating public and private scholarships;
and
(B) assistance in completing financial aid
applications, including the Free Application for
Federal Student Aid described in section 483(a);
(4) education or counseling services designed to
improve the financial literacy and economic literacy of
students[, including financial] , including--
(A) financial planning for postsecondary
education;
(B) basic personal income, household money
management, and financial planning skills; and
(C) basic economic decisionmaking skills;
(5) activities designed to assist students
participating in the project in applying for admission
to, and obtaining financial assistance for enrollment
in, graduate and professional programs; and
(6) activities designed to assist students enrolled
in two-year institutions of higher education in
applying for admission to, and obtaining financial
assistance for enrollment in, a four-year program of
postsecondary education.
(c) Permissible Services.--A project assisted under this
section may provide services such as--
(1) individualized counseling for personal, career,
and academic matters provided by assigned counselors;
(2) information, activities, and instruction designed
to acquaint students participating in the project with
the range of career options available to the students;
(3) exposure to cultural events and academic programs
not usually available to disadvantaged students;
(4) mentoring programs involving faculty or upper
class students, or a combination thereof;
(5) securing temporary housing during breaks in the
academic year for--
(A) students who are homeless children and
youths (as such term is defined in section 725
of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11434a)) or were formerly homeless
children and youths; and
(B) students who are in foster care or are
aging out of the foster care system; and
(6) programs and activities as described in
subsection (b) or paragraphs (1) through (4) of this
subsection that are specially designed for students who
are limited English proficient, students from groups
that are traditionally underrepresented in
postsecondary education, students with disabilities,
students who are homeless children and youths (as such
term is defined in section 725 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a)), students
who are in foster care or are aging out of the foster
care system, or other disconnected students.
(d) Special Rule.--
(1) Use for student aid.--A recipient of a grant that
undertakes any of the permissible services identified
in subsection (c) may, in addition, use such funds to
provide grant aid to students. A grant provided under
this paragraph shall not exceed the Federal Pell Grant
amount, determined under section 401(b)(2)(A), for
which a student is eligible, or be less than the
minimum Federal Pell Grant amount described in section
401(b)(4), for the current academic year. In making
grants to students under this subsection, an
institution shall ensure that adequate consultation
takes place between the student support service program
office and the institution's financial aid office.
(2) Eligible students.--For purposes of receiving
grant aid under this subsection, eligible students
shall be current participants in the student support
services program offered by the institution and be--
(A) students who are in their first 2 years
of postsecondary education and who are
receiving Federal Pell Grants under subpart 1;
or
(B) students who have completed their first 2
years of postsecondary education and who are
receiving Federal Pell Grants under subpart 1
if the institution demonstrates to the
satisfaction of the Secretary that--
(i) these students are at high risk
of dropping out; and
(ii) it will first meet the needs of
all its eligible first- and second-year
students for services under this
paragraph.
(3) Determination of need.--A grant provided to a
student under paragraph (1) shall not be considered in
determining that student's need for grant or work
assistance under this title, except that in no case
shall the total amount of student financial assistance
awarded to a student under this title exceed that
student's cost of attendance, as defined in section
472.
(4) Matching required.--A recipient of a grant who
uses such funds for the purpose described in paragraph
(1) shall match the funds used for such purpose, in
cash, from non-Federal funds, in an amount that is not
less than 33 percent of the total amount of funds used
for that purpose. This paragraph shall not apply to any
grant recipient that is an institution of higher
education eligible to receive funds under part A or B
of title III or title V.
(5) Reservation.--In no event may a recipient use
more than 20 percent of the funds received under this
section for grant aid.
(6) Supplement, not supplant.--Funds received by a
grant recipient that are used under this subsection
shall be used to supplement, and not supplant, non-
Federal funds expended for student support services
programs.
(e) Requirements for approval of applications.--In approving
applications for projects under this section for any fiscal
year, the Secretary shall--
(1) require an assurance that not less than two-
thirds of the persons participating in the project
proposed to be carried out under any application--
(A) be individuals with disabilities; or
(B) be low-income individuals who are first
generation college students;
(2) require an assurance that the remaining students
participating in the project proposed to be carried out
under any application be low-income individuals, first
generation college students, or individuals with
disabilities;
(3) require an assurance that not less than one-third
of the individuals with disabilities participating in
the project be low-income individuals;
(4) require that there be a determination by the
institution, with respect to each participant in such
project, that the participant has a need for academic
support in order to pursue successfully a program of
education beyond secondary school;
(5) require that such participants be enrolled or
accepted for enrollment at the institution which is the
recipient of the grant or contract; [and]
(6) require the grantee to maintain, to the extent
practicable, a record of any services participants
receive during the project year from another program
under this chapter or other federally funded programs
serving similar populations to minimize the duplication
of services; and
[(6)] (7) consider, in addition to such other
criteria as the Secretary may prescribe, the
institution's effort, and where applicable past
history, in--
(A) providing sufficient financial assistance
to meet the full financial need of each student
in the project; and
(B) maintaining the loan burden of each such
student at a manageable level.
SEC. 402E. POSTBACCALAUREATE ACHIEVEMENT PROGRAM AUTHORITY.
(a) Program Authority.--The Secretary shall carry out a
program to be known as the ``Ronald E. McNair Postbaccalaureate
Achievement Program'' that shall be designed to provide
disadvantaged college students with effective preparation for
doctoral study.
(b) Required Services.--A project assisted under this section
shall provide--
(1) opportunities for research or other scholarly
activities at the institution or at graduate centers
designed to provide students with effective preparation
for doctoral study;
(2) [summer internships] internships and faculty-led
research experiences;
(3) seminars and other educational activities
designed to prepare students for doctoral study;
(4) tutoring;
(5) academic counseling; and
(6) activities designed to assist students
participating in the project in securing admission to
and financial assistance for enrollment in graduate
programs.
(c) Permissible Services.--A project assisted under this
section may provide services such as--
(1) education or counseling services designed to
improve the financial literacy and economic literacy of
students, including financial planning for
postsecondary education;
(2) mentoring programs involving faculty members at
institutions of higher education, students, or any
combination of such persons; and
(3) exposure to cultural events and academic programs
not usually available to disadvantaged students.
(d) Requirements.--In approving applications for projects
assisted under this section for any fiscal year, the Secretary
shall require--
(1) an assurance that not less than two-thirds of the
individuals participating in the project proposed to be
carried out under any application be low-income
individuals who are first generation college students;
(2) an assurance that the remaining persons
participating in the project proposed to be carried out
be from a group that is underrepresented in graduate
education, including--
(A) Alaska Natives, as defined in section
6306 of the Elementary and Secondary Education
Act of 1965;
(B) Native Hawaiians, as defined in section
6207 of such Act; and
(C) Native American Pacific Islanders, as
defined in section 320;
(3) an assurance that participants be enrolled in a
degree program at an eligible institution having an
agreement with the Secretary in accordance with the
provisions of section 487; [and]
(4) an assurance that participants in [summer]
research internships have completed their sophomore
year in postsecondary education[.]; and
(5) the grantee to maintain, to the extent
practicable, a record of any services participants
receive during the project year from another program
under this chapter or other federally funded program
serving similar populations to minimize the duplication
of services.
(e) Award Considerations.--In addition to such other
selection criteria as may be prescribed by regulations, the
Secretary shall consider in making awards to institutions under
this section--
(1) the quality of research and other scholarly
activities in which students will be involved;
(2) the level of faculty involvement in the project
and the description of the research in which students
will be involved; and
(3) the institution's plan for identifying and
recruiting participants including students enrolled in
projects authorized under this section.
(f) Maximum Stipends.--Students participating in research
under a project under this section may receive an award that--
(1) shall include a stipend not to exceed $2,800 per
annum; and
(2) may include, in addition, the costs of summer
tuition, summer room and board, and transportation to
summer programs.
(g) Funding.--From amounts appropriated pursuant to the
authority of section 402A(g), the Secretary shall, to the
extent practicable, allocate funds for projects authorized by
this section in an amount which is not less than $11,000,000
for each of the fiscal years [2009 through 2014] 2019 through
2024.
SEC. 402F. EDUCATIONAL OPPORTUNITY CENTERS.
(a) Program Authority; Services Provided.--The Secretary
shall carry out a program to be known as educational
opportunity centers which shall be designed--
(1) to provide information with respect to financial
and academic assistance available for individuals
desiring to pursue or re-enter a program of
postsecondary education;
(2) to provide assistance to such persons in applying
for admission to institutions at which a program of
postsecondary education is offered, including preparing
necessary applications for use by admissions and
financial aid officers; and
(3) to improve the financial literacy and economic
literacy [of students] of such persons, including--
(A) basic personal income, household money
management, and financial planning skills; and
(B) basic economic decisionmaking skills.
(b) Permissible Services.--An educational opportunity center
assisted under this section may provide services such as--
(1) public information campaigns designed to inform
the community regarding opportunities for postsecondary
education and training;
(2) academic advice and assistance in course
selection;
(3) assistance in completing college admission and
financial aid applications;
(4) assistance in preparing for college entrance
examinations;
(5) education or counseling services designed to
improve the financial literacy and economic literacy of
[students;] students, including--
(A) financial planning for postsecondary
education;
(B) basic personal income, household money
management, and financial planning skills; and
(C) basic economic decisionmaking skills;
(6) guidance on secondary school reentry or entry to
a general educational development (GED) program or
other alternative education programs for secondary
school dropouts;
(7) individualized personal, career, and academic
counseling;
(8) tutorial services;
(9) career workshops and counseling;
(10) mentoring programs involving elementary or
secondary school teachers, faculty members at
institutions of higher education, students, or any
combination of such persons; and
(11) programs and activities as described in
paragraphs (1) through (10) that are specially designed
for students who are limited English proficient,
students from groups that are traditionally
underrepresented in postsecondary education, students
with disabilities, students who are homeless children
and youths (as such term is defined in section 725 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a)), students who are in foster care or are aging
out of the foster care system, or other disconnected
students.
(c) Requirements for Approval of Applications.--In approving
applications for educational opportunity centers under this
section for any fiscal year the Secretary shall--
(1) require an assurance that not less than two-
thirds of the persons participating in the project
proposed to be carried out under any application be
low-income individuals who are first generation college
students;
(2) require an assurance that the remaining persons
participating in the project proposed to be carried out
under any application be low-income individuals or
first generation college students;
[(2)] (3) require that such participants be persons
who are at least nineteen years of age, unless the
imposition of such limitation with respect to any
person would defeat the purposes of this section or the
purposes of section 402B; [and]
[(3)] (4) require an assurance that individuals
participating in the project proposed in the
application do not have access to services from another
project funded under this section or under section
402B[.]; and
(5) require the grantee to maintain, to the extent
practicable, a record of any services participants
receive during the project year from another program
under this chapter or other federally funded program
serving similar populations to minimize the duplication
of services.
SEC. 402G. STAFF DEVELOPMENT ACTIVITIES.
(a) Secretary's Authority.--For the purpose of improving the
operation of the programs and projects authorized by this
chapter, the Secretary is authorized to make grants to
institutions of higher education and other public and private
nonprofit institutions and organizations to provide training
for staff and leadership personnel employed in, participating
in, or preparing for employment in, such programs and projects.
(b) Contents of Training Programs.--Such training shall
include conferences, internships, seminars, workshops, webinars
and online classes, and the publication of manuals designed to
improve the operation of such programs and projects and shall
be carried out in the various regions of the Nation in order to
ensure that the training opportunities are appropriate to meet
the needs in the local areas being served by such programs and
projects. Such training shall be offered annually for new
[directors] staff of projects funded under this chapter as well
as annually on the following topics and other topics chosen by
the Secretary:
(1) Legislative and regulatory requirements for the
operation of programs funded under this chapter.
(2) Assisting students in receiving adequate
financial aid from programs assisted under this title
and other programs.
(3) The design and operation of model and innovative
programs for projects funded under this chapter.
(4) The use of appropriate educational technology in
the operation of projects assisted under this chapter.
(5) Strategies for recruiting and serving hard to
reach populations, including students who are limited
English proficient, students from groups that are
traditionally underrepresented in postsecondary
education, students with disabilities, students who are
homeless children and youths (as such term is defined
in section 725 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11434a)), students who are in
foster care or are aging out of the foster care system,
or other disconnected students.
(c) Consultation.--Grants for the purposes of this section
shall be made only after consultation with regional and State
professional associations of persons having special knowledge
with respect to the needs and problems of such programs and
projects.
SEC. 402H. REPORTS, EVALUATIONS, AND GRANTS FOR PROJECT IMPROVEMENT AND
DISSEMINATION.
(a) Reports to the Authorizing Committees.--
(1) In general.--The Secretary shall submit annually,
to the authorizing committees, a report that documents
the performance of all programs funded under this
chapter. Such report shall--
(A) be submitted not later than 12 months
after the eligible entities receiving funds
under this chapter are required to report their
performance to the Secretary;
(B) focus on the programs' performance on the
relevant outcome criteria determined under
section 402A(f)(4);
(C) aggregate individual project performance
data on the outcome criteria in order to
provide national performance data for each
program;
(D) include, when appropriate, descriptive
data, multi-year data, and multi-cohort data;
and
(E) include comparable data on the
performance nationally of low-income students,
first-generation students, and students with
disabilities.
(2) Information.--The Secretary shall provide, with
each report submitted under paragraph (1), information
on the impact of the secondary review process described
in section 402A(c)(8)(C)(iv), including the number and
type of secondary reviews, the disposition of the
secondary reviews, the effect on timing of awards, and
any other information the Secretary determines is
necessary.
[(b) Evaluations.--
[(1) In general.--
[(A) Authorization of grants and contracts.--
For the purpose of improving the effectiveness
of the programs and projects assisted under
this chapter, the Secretary shall make grants
to, or enter into contracts with, institutions
of higher education and other public and
private institutions and organizations to
rigorously evaluate the effectiveness of the
programs and projects assisted under this
chapter, including a rigorous evaluation of the
programs and projects assisted under section
402C. The evaluation of the programs and
projects assisted under section 402C shall be
implemented not later than June 30, 2010.
[(B) Content of upward bound evaluation.--The
evaluation of the programs and projects
assisted under section 402C that is described
in subparagraph (A) shall examine the
characteristics of the students who benefit
most from the Upward Bound program under
section 402C and the characteristics of the
programs and projects that most benefit
students.
[(C) Implementation.--Each evaluation
described in this paragraph shall be
implemented in accordance with the requirements
of this section.
[(2) Practices.--
[(A) In general.--The evaluations described
in paragraph (1) shall identify institutional,
community, and program or project practices
that are effective in--
[(i) enhancing the access of low-
income individuals and first-generation
college students to postsecondary
education;
[(ii) the preparation of such
individuals and students for
postsecondary education; and
[(iii) fostering the success of the
individuals and students in
postsecondary education.
[(B) Primary purpose.--Any evaluation
conducted under this chapter shall have as the
evaluation's primary purpose the identification
of particular practices that further the
achievement of the outcome criteria determined
under section 402A(f)(4).
[(C) Dissemination and use of evaluation
findings.--The Secretary shall disseminate to
eligible entities and make available to the
public the practices identified under
subparagraph (B). The practices may be used by
eligible entities that receive assistance under
this chapter after the dissemination.
[(3) Special rule related to evaluation
participation.--The Secretary shall not require an
eligible entity, as a condition for receiving, or that
receives, assistance under any program or project under
this chapter to participate in an evaluation under this
section that--
[(A) requires the eligible entity to recruit
additional students beyond those the program or
project would normally recruit; or
[(B) results in the denial of services for an
eligible student under the program or project.
[(4) Consideration.--When designing an evaluation
under this subsection, the Secretary shall continue to
consider--
[(A) the burden placed on the program
participants or the eligible entity; and
[(B) whether the evaluation meets generally
accepted standards of institutional review
boards.]
(b) Evaluations.--
(1) In general.--For the purpose of improving the
effectiveness of the programs assisted under this
chapter, the Secretary shall make grants to or enter
into contracts with one or more organizations to--
(A) evaluate the effectiveness of the
programs assisted under this chapter; and
(B) disseminate information on the impact of
the programs in increasing the education level
of participants, as well as other appropriate
measures.
(2) Issues to be evaluated.--The evaluations
described in paragraph (1) shall measure the
effectiveness of programs funded under this chapter
in--
(A) meeting or exceeding the stated
objectives regarding the outcome criteria under
subsection (f) of section 402A;
(B) enhancing the access of low-income
individuals and first-generation college
students to postsecondary education;
(C) preparing individuals for postsecondary
education;
(D) comparing the level of education
completed by students who participate in the
programs funded under this chapter with the
level of education completed by students of
similar backgrounds who do not participate in
such programs;
(E) comparing the retention rates, dropout
rates, graduation rates, and college admission
and completion rates of students who
participate in the programs funded under this
chapter with the rates of students of similar
backgrounds who do not participate in such
programs; and
(F) such other issues as the Secretary
considers appropriate for inclusion in the
evaluation.
(3) Program methods.--Such evaluations shall also
investigate the effectiveness of alternative and
innovative methods within programs funded under this
chapter of increasing access to, and retention of,
students in postsecondary education.
(4) Results.--The Secretary shall submit to the
authorizing committees--
(A) an interim report on the progress and
preliminary results of the evaluation of each
program funded under this chapter not later
than 2 years following the date of enactment of
the PROSPER Act; and
(B) a final report not later than 3 years
following the date of enactment of such Act.
(5) Public availability.--All reports and underlying
data gathered pursuant to this subsection shall be made
available to the public upon request, in a timely
manner following submission of the applicable reports
under this subsection, except that any personally
identifiable information with respect to a student
participating in a program or project assisted under
this chapter shall not be disclosed or made available
to the public.
(c) Grants.--The Secretary may award grants to institutions
of higher education or other private and public institutions
and organizations, that are carrying out a program or project
assisted under this chapter prior to the date of enactment of
the Higher Education Amendments of 1998, to enable the
institutions and organizations to expand and leverage the
success of such programs or projects by working in partnership
with other institutions, community-based organizations, or
combinations of such institutions and organizations, that are
not receiving assistance under this chapter and are serving
low-income students and first generation college students, in
order to--
(1) disseminate and replicate best practices of
programs or projects assisted under this chapter; and
(2) provide technical assistance regarding programs
and projects assisted under this chapter.
(d) Results.--In order to improve overall program or project
effectiveness, the results of evaluations and grants described
in this section shall be disseminated by the Secretary to
similar programs or projects assisted under this subpart, as
well as other individuals concerned with postsecondary access
for and retention of low-income individuals and first-
generation college students.
SEC. 402I. IMPACT GRANTS.
(a) In General.--From funds reserved under subsection (e),
the Secretary shall make grants to improve postsecondary access
and completion rates for qualified individuals from
disadvantaged backgrounds. These grants shall be known as
innovative measures promoting postsecondary access and
completion grants or ``IMPACT Grants'' and allow eligible
entities to--
(1) create, develop, implement, replicate, or take to
scale evidence-based, field-initiated innovations,
including through pay-for-success initiatives, to serve
qualified individuals from disadvantaged backgrounds
and improve student outcomes; and
(2) rigorously evaluate such innovations, in
accordance with subsection (d).
(b) Description of Grants.--The grants described in
subsection (a) shall include--
(1) early-phase grants to fund the development,
implementation, and feasibility testing of a program,
which prior research suggests has a promise, for the
purpose of determining whether the program can
successfully improve postsecondary access and
completion rates;
(2) mid-phase grants to fund implementation and a
rigorous evaluation of a program that has been
successfully implemented under an early-phase grant
described in paragraph (1); and
(3) expansion grants to fund implementation and a
rigorous replication evaluation of a program that has
been found to produce sizable, important impacts under
a mid-phase grant described in paragraph (2) for the
purposes of--
(A) determining whether such outcomes can be
successfully reproduced and sustained over
time; and
(B) identifying the conditions in which the
project is most effective.
(c) Requirements for Approval of Applications.--To receive a
grant under this section, an eligible entity shall submit an
application to the Secretary at such time, and in such manner
as the Secretary may require, which shall include--
(1) an assurance that not less than two-thirds of the
individuals who will participate in the program
proposed to be carried out with the grant will be--
(A) low-income individuals who are first
generation college students; or
(B) individuals with disabilities;
(2) an assurance that any other individuals (not
described in paragraph (1)) who will participate in
such proposed program will be--
(A) low-income individuals;
(B) first generation college students; or
(C) individuals with disabilities;
(3) a detailed description of the proposed program,
including how such program will directly benefit
students;
(4) the number of projected students to be served by
the program;
(5) how the program will be evaluated; and
(6) an assurance that the individuals participating
in the project proposed are individuals who do not have
access to services from another programs funded under
this section.
(d) Evaluation.--Each eligible entity receiving a grant under
this section shall conduct an independent evaluation of the
effectiveness of the program carried out with such grant and
shall submit to the Secretary, on an annual basis, a report
that includes--
(1) a description of how funds received under this
section were used;
(2) the number of students served by the project
carried out under this section; and
(3) a quantitative analysis of the effectiveness of
the project.
(e) Funding.--From amounts appropriated under section
402A(g), the Secretary shall reserve not less than 10 percent
of such funds to carry out this section.
CHAPTER 2--GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
PROGRAMS
SEC. 404A. EARLY INTERVENTION AND COLLEGE AWARENESS PROGRAM AUTHORIZED.
(a) Program Authorized.--The Secretary is authorized, in
accordance with the requirements of this chapter, to establish
a program that encourages eligible entities to provide support,
and maintain a commitment, to eligible low-income students,
including students with disabilities, to assist the students in
obtaining a secondary school diploma (or its recognized
equivalent) and to prepare for and succeed in postsecondary
education, by providing--
(1) financial assistance, [academic support] academic
support for college readiness, additional counseling,
mentoring, outreach, and supportive services to
secondary school students, including students with
disabilities, to reduce--
(A) the risk of such students dropping out of
school; or
(B) the need for remedial education for such
students at the postsecondary level; and
(2) information to students and their families about
the advantages of obtaining a postsecondary education
and, college financing options for the students and
their families.
(b) Awards.--
(1) In general.--From funds appropriated under
section 404H for each fiscal year, the Secretary shall
make new awards to eligible entities described in
paragraphs (1) and (2) of subsection (c) to enable the
entities to carry out the program authorized under
subsection (a).
(2) Award period.--The Secretary may award a grant
under this chapter to an eligible entity described in
paragraphs (1) and (2) of subsection (c) for--
(A) six years; or
(B) in the case of an eligible entity that
applies for a grant under this chapter for
seven years to enable the eligible entity to
provide services to a student through the
student's first year of attendance at an
institution of higher education, seven years.
(3) Priority.--In making awards to eligible entities
described in subsection (c)(1), the Secretary shall--
[(A) give priority to eligible entities
that--
[(i) on the day before the date of
enactment of the Higher Education
Opportunity Act, carried out successful
educational opportunity programs under
this chapter (as this chapter was in
effect on such day); and
[(ii) have a prior, demonstrated
commitment to early intervention
leading to college access through
collaboration and replication of
successful strategies; and]
(A) give priority to eligible entities that
have a prior, demonstrated commitment to early
intervention leading to college access and
readiness through collaboration and replication
of successful strategies; and
(B) ensure that students served under this
chapter on the day before the date of enactment
of [the Higher Education Opportunity Act] the
PROSPER Act continue to receive assistance
through the completion of secondary school.
(4) Multiple award prohibition.--Eligible entities
described in subsection (c)(1) that receive a grant
under this chapter shall not be eligible to receive an
additional grant under this chapter until after the
date on which the initial grant period expires.
(c) Definition of Eligible Entity.--For the purposes of this
chapter, the term ``eligible entity'' means--
(1) a State; or
(2) a partnership--
(A) consisting of--
(i) one or more local educational
agencies; and
(ii) one or more degree granting
institutions of higher education; and
(B) which may include not less than two other
community organizations or entities, such as
businesses, professional organizations, State
agencies, [institutions or agencies sponsoring
programs authorized under subpart 4,] or other
public or private agencies or organizations.
* * * * * * *
SEC. 404C. APPLICATIONS.
(a) Application Required for Eligibility.--
(1) In general.--In order for an eligible entity to
qualify for a grant under this chapter, the eligible
entity shall submit to the Secretary an application for
carrying out the program under this chapter.
(2) Contents.--Each application submitted pursuant to
paragraph (1) shall be in such form[, contain or be
accompanied by such information or assurances,] and be
submitted at such time as the Secretary may reasonably
require. Each such application shall[, at a minimum]--
(A) describe the activities for which
assistance under this chapter is sought,
including how the eligible entity will carry
out the required activities described in
section 404D(a);
[(B) describe, in the case of an eligible
entity described in section 404A(c)(2) that
chooses to provide scholarships, or an eligible
entity described in section 404A(c)(1), how the
eligible entity will meet the requirements of
section 404E;]
(B) describe, in the case of an eligible
entity described in section 404A(c)(2) that
chooses to provide scholarships, or an eligible
entity described in section 404A(c)(1)--
(i) the eligible entity's plan to
establish or maintain a financial
assistance program in accordance with
the requirements of section 404E,
including any eligibility criteria
other than the criteria described in
section 404E(g), such as--
(I) demonstrating financial
need;
(II) meeting and maintaining
satisfactory academic progress;
and
(III) other criteria aligned
with State and local goals to
increase postsecondary
readiness, access, and
completion; and
(ii) how the eligible entity will
meet the other requirements of section
404E;
(C) describe, in the case of an eligible
entity described in section 404A(c)(2) that
requests a reduced match percentage under
subsection (b)(2), how such reduction will
assist the entity to provide the scholarships
described in subsection (b)(2)(A)(ii);
(D) provide assurances that adequate
administrative and support staff will be
responsible for coordinating the activities
described in section 404D;
(E) provide assurances that activities
assisted under this chapter will not displace
an employee or eliminate a position at a school
assisted under this chapter, including a
partial displacement such as a reduction in
hours, wages, or employment benefits;
(F) describe, in the case of an eligible
entity described in section 404A(c)(1) that
chooses to use a cohort approach, or an
eligible entity described in section
404A(c)(2), how the eligible entity will define
the cohorts of the students served by the
eligible entity pursuant to section 404B(d),
and how the eligible entity will serve the
cohorts through grade 12, including--
(i) how vacancies in the program
under this chapter will be filled; and
(ii) how the eligible entity will
serve students attending different
secondary schools;
(G) describe how the eligible entity will
coordinate programs under this chapter with
other existing Federal, State, or local
programs to avoid duplication and maximize the
number of students served;
[(H) provide such additional assurances as
the Secretary determines necessary to ensure
compliance with the requirements of this
chapter;]
[(I)] (H) provide information about the
activities that will be carried out by the
eligible entity to support systemic changes
from which future cohorts of students will
benefit; and
[(J)] (I) describe the sources of matching
funds that will enable the eligible entity to
meet the matching requirement described in
subsection (b).
(b) Matching Requirement.--
(1) In general.--The Secretary shall not approve an
application submitted under subsection (a) unless such
application--
(A) provides that the eligible entity will
provide, from State, local, institutional, or
private funds, not less than 50 percent of the
cost of the program, which matching funds may
be provided in cash or in kind and may be
accrued over the full duration of the grant
award period, except that the eligible entity
shall make substantial progress towards meeting
the matching requirement in each year of the
grant award period;
(B) specifies the methods by which matching
funds will be paid; and
(C) includes provisions designed to ensure
that funds provided under this chapter shall
supplement and not supplant funds expended for
existing programs.
[(2) Special rule.--Notwithstanding the matching
requirement described in paragraph (1)(A), the
Secretary may by regulation modify the percentage
requirement described in paragraph (1)(A) for eligible
entities described in section 404A(c)(2). The Secretary
may approve an eligible entity's request for a reduced
match percentage--
[(A) at the time of application--
[(i) if the eligible entity
demonstrates significant economic
hardship that precludes the eligible
entity from meeting the matching
requirement; or
[(ii) if the eligible entity is
described in section 404A(c)(2) and
requests that contributions to the
eligible entity's scholarship fund
established under section 404E be
matched on a two to one basis; or
[(B) in response to a petition by an eligible
entity subsequent to a grant award under this
section if the eligible entity demonstrates
that the matching funds described in its
application are no longer available and the
eligible entity has exhausted all revenues for
replacing such matching funds.]
(2) Special rule.--Notwithstanding the matching
requirement described in paragraph (1)(A), the
Secretary may--
(A) at the time of application--
(i) approve a Partnership applicant's
request for a waiver of up to 75
percent of the matching requirement for
up to two years if the applicant
demonstrates in its application a
significant economic hardship that
stems from a specific, exceptional, or
uncontrollable event, such as a natural
disaster, that has a devastating effect
on the members of the Partnership and
the community in which the project
would operate;
(ii)(I) approve a Partnership
applicant's request to waive up to 50
percent of the matching requirement for
up to two years if the applicant
demonstrates in its application a pre-
existing and an on-going significant
economic hardship that precludes the
applicant from meeting its matching
requirement; and
(II) provide tentative approval of an
applicant's request for a waiver under
subclause (I) for all remaining years
of the project period;
(iii) approve a Partnership
applicant's request in its application
to match its contributions to its
scholarship fund, established under
section 404E, on the basis of two non-
Federal dollars for every one dollar of
Federal funds provided under this
chapter; or
(iv) approve a request by a
Partnership applicant that has three or
fewer institutions of higher education
as members to waive up to 70 percent of
the matching requirement if the
Partnership applicant includes--
(I) a fiscal agent that is
eligible to receive funds under
title V, or part B of title
III, or section 316 or 317, or
a local educational agency;
(II) only participating
schools with a 7th grade cohort
in which at least 75 percent of
the students are eligible for
free or reduced-price lunch
under the Richard B. Russell
National School Lunch Act; and
(III) only local educational
agencies in which at least 50
percent of the students
enrolled are eligible for free
or reduced-price lunch under
the Richard B. Russell National
School Lunch Act; and
(B) after a grant is awarded, approve a
Partnership grantee's written request for a
waiver of up to--
(i) 50 percent of the matching
requirement for up to two years if the
grantee demonstrates that--
(I) the matching
contributions described for
those two years in the
grantee's approved application
are no longer available; and
(II) the grantee has
exhausted all funds and sources
of potential contributions for
replacing the matching funds;
or
(ii) 75 percent of the matching
requirement for up to two years if the
grantee demonstrates that matching
contributions from the original
application are no longer available due
to an uncontrollable event, such as a
natural disaster, that has a
devastating economic effect on members
of the Partnership and the community in
which the project would operate.
(3) Additional terms.--
(A) On-going economic hardship.--In
determining whether a Partnership applicant is
experiencing an on-going economic hardship that
is significant enough to justify a waiver under
subparagraphs (A)(i) and (A)(ii)(I) of
paragraph (2), the Secretary may consider
documentation of the following:
(i) Severe distress in the local
economy of the community to be served
by the grant (e.g., there are few
employers in the local area, large
employers have left the local area, or
significant reductions in employment in
the local area).
(ii) Local unemployment rates that
are higher than the national average.
(iii) Low or decreasing revenues for
State and County governments in the
area to be served by the grant.
(iv) Significant reductions in the
budgets of institutions of higher
education that are participating in the
grant.
(v) Other data that reflect a
significant economic hardship for the
geographical area served by the
applicant.
(B) Exhaustion of funds.--In determining
whether a Partnership grantee has exhausted all
funds and sources of potential contributions
for replacing matching funds under paragraph
(2)(B), the secretary may consider the
grantee's documentation of key factors that
have had a direct impact on the grantee such as
the following:
(i) A reduction of revenues from
State government, County government, or
the local educational agency.
(ii) An increase in local
unemployment rates.
(iii) Significant reductions in the
operating budgets of institutions of
higher education that are participating
in the grant.
(iv) A reduction of business activity
in the local area (e.g., large
employers have left the local area).
(v) Other data that reflect a
significant decrease in resources
available to the grantee in the local
geographical area served by the
grantee.
(C) Renewal of waiver.--A Partnership
applicant that receives a tentative approval of
a waiver under subparagraph (A)(ii)(II) of
paragraph (2) for more than two years under
this paragraph must submit to the Secretary
every two years by such time as the Secretary
may direct documentation that demonstrates
that--
(i) the significant economic hardship
upon which the waiver was granted still
exists; and
(ii) the grantee tried diligently,
but unsuccessfully, to obtain
contributions needed to meet the
matching requirement.
(D) Multiple waivers.--If a grantee has
received one or more waivers under paragraph
(2), the grantee may request an additional
waiver of the matching requirement under this
subsection not earlier than 60 days before the
expiration of the grantee's existing waiver.
(c) Methods for Complying With Matching Requirement.--An
eligible entity may count toward the matching requirement
described in subsection (b)(1)(A)--
(1) the amount of the financial assistance obligated
to students from State, local, institutional, or
private funds under this chapter, including pre-
existing non-Federal financial assistance programs,
including--
(A) the amount contributed to a student
scholarship fund established under section
404E; and
(B) the amount of the costs of administering
the scholarship program under section 404E;
(2) the amount of tuition, fees, room or board waived
or reduced for recipients of financial assistance under
this chapter;
(3) the amount expended on documented, targeted,
long-term mentoring and counseling provided by
volunteers or paid staff of nonschool organizations,
including businesses, religious organizations,
community groups, postsecondary educational
institutions, nonprofit and philanthropic
organizations, and other organizations; and
(4) other resources recognized by the Secretary,
including equipment and supplies, cash contributions
from non-Federal sources, transportation expenses, in-
kind or discounted program services, indirect costs,
and facility usage.
(d) Peer Review Panels.--The Secretary shall convene peer
review panels to assist in making determinations regarding the
awarding of grants under this chapter.
SEC. 404D. ACTIVITIES.
(a) Required Activities.--Each eligible entity receiving a
grant under this chapter shall provide comprehensive mentoring,
outreach, and supportive services to students participating in
the programs under this chapter. Such activities shall include
the following:
(1) Providing information regarding [financial aid
for] financial aid, including loans, grants,
scholarships, and institutional aid for postsecondary
education to participating students in the cohort
described in section 404B(d)(1)(A) or to priority
students described in subsection (d).
(2) Encouraging student enrollment in [rigorous and
challenging curricula and coursework, in order to]
curricula and coursework designed to reduce the need
for remedial coursework at the postsecondary level.
(3) Providing information to students and families
about the advantages of obtaining a postsecondary
education.
(4) Providing tutors and mentors, who may include
adults or former participants of a program under this
chapter, for use by eligible students in need.
[(3)] (5) [Improving] Providing supportive services
to improve the number of participating students who--
(A) obtain a secondary school diploma; and
(B) complete applications for and enroll in a
program of postsecondary education.
[(4)] (6) In the case of an eligible entity described
in section 404A(c)(1), providing for the scholarships
described in section 404E.
(b) Permissible Activities for States and Partnerships.--An
eligible entity that receives a grant under this chapter may
use grant funds to carry out one or more of the following
activities:
[(1) Providing tutors and mentors, who may include
adults or former participants of a program under this
chapter, for eligible students.]
[(2)] (1) Conducting outreach activities to recruit
priority students described in subsection (d) to
participate in program activities.
[(3)] (2) Providing supportive services to eligible
students.
[(4)] (3) Supporting the development or
implementation of [rigorous] academic curricula, which
may include college preparatory, Advanced Placement, or
International Baccalaureate programs, and providing
participating students access to [rigorous] core
academic courses that reflect challenging State
academic standards.
[(5)] (4) Supporting dual or concurrent enrollment
programs between the secondary school and institution
of higher education partners of an eligible entity
described in section 404A(c)(2), and other activities
that support participating students in--
(A) meeting challenging State academic
standards;
(B) successfully applying for postsecondary
education;
(C) successfully applying for student
financial aid; and
(D) developing graduation and career plans.
[(6)] (5) Providing special programs or tutoring in
science, technology, engineering, or mathematics.
[(7)] (6) In the case of an eligible entity described
in section 404A(c)(2), providing support for
scholarships described in section 404E.
[(8)] (7) Introducing eligible students to
institutions of higher education, through trips and
school-based sessions.
[(9)] (8) Providing an intensive extended school day,
school year, or summer program that offers--
(A) additional academic classes; or
(B) assistance with college admission
applications.
[(10)] (9) Providing other activities designed to
ensure secondary school completion and postsecondary
education enrollment of at-risk children, such as--
(A) the identification of at-risk children;
(B) after-school and summer tutoring;
(C) assistance to at-risk children in
obtaining summer jobs;
(D) academic counseling;
(E) providing counseling or referral services
to address the behavioral, social-emotional,
and mental health needs of at-risk students;
[(E)] (F) financial literacy and economic
literacy education or counseling;
[(F)] (G) volunteer and parent involvement;
[(G)] (H) encouraging former or current
participants of a program under this chapter to
serve as peer counselors;
[(H) skills assessments] (I) skills,
cognitive, non-cognitive, and credit-by-
examination assessments;
[(I)] (J) personal and family counseling, and
home visits;
[(J)] (K) staff development; [and]
[(K)] (L) programs and activities described
in this subsection that are specially designed
for students who are limited English
proficient[.]; and
(M) capacity building activities that create
college-going cultures in participating schools
and local education agencies.
[(11)] (10) Enabling eligible students to enroll in
Advanced Placement or International Baccalaureate
courses, or college entrance examination preparation
courses.
[(12)] (11) Providing services to eligible students
in the participating cohort described in section
404B(d)(1)(A), through the first year of attendance at
an institution of higher education.
[(13)] (12) Fostering and improving parent and family
involvement in elementary and secondary education by
promoting the advantages of a college education, and
emphasizing academic admission requirements and the
need to take college preparation courses, through
parent engagement and leadership activities.
[(14)] (13) Disseminating information that promotes
the importance of higher education, explains college
preparation and admission requirements, and raises
awareness of the resources and services provided by the
eligible entities to eligible students, their families,
and communities.
[(15)] (14) In the event that matching funds
described in the application are no longer available,
engaging entities described in section 404A(c)(2) in a
collaborative manner to provide matching resources and
participate in other activities authorized under this
section.
(15) Creating or expanding drop-out recovery programs
that allow individuals who drop out of school to
complete a regular secondary school diploma and begin
college-level work.
(c) Additional Permissible Activities for States.--In
addition to the required activities described in subsection (a)
and the permissible activities described in subsection (b), an
eligible entity described in section 404A(c)(1) receiving funds
under this chapter may use grant funds to carry out one or more
of the following activities:
(1) Providing technical assistance to--
(A) secondary schools that are located within
the State; or
(B) partnerships described in section
404A(c)(2) that are located within the State.
(2) Providing professional development opportunities
to individuals working with eligible cohorts of
students described in section 404B(d)(1)(A).
(3) Providing administrative support and technical
assistance to help build the capacity of eligible
entities described in section 404A(c)(2) to compete for
and manage grants awarded under this chapter.
(4) Providing strategies and activities that align
efforts in the State to prepare eligible students to
attend and succeed in postsecondary education, which
may include the development of graduation and career
plans.
(5) Disseminating information on the use of
scientifically valid research and best practices to
improve services for eligible students.
(6)(A) Disseminating information on effective
coursework and support services that assist students in
obtaining the goals described in subparagraph (B)(ii).
(B) Identifying and disseminating information on best
practices with respect to--
(i) increasing parental involvement; and
(ii) preparing students, including students
with disabilities and students who are limited
English proficient, to succeed academically in,
and prepare financially for, postsecondary
education.
(7) Working to align State academic standards and
curricula with the expectations of postsecondary
institutions and employers.
(8) Developing alternatives to traditional secondary
school that give students a head start on attaining a
recognized postsecondary credential (including an
industry-recognized certificate, an apprenticeship, or
an associate's or a bachelor's degree), including
school designs that give students early exposure to
college-level courses and experiences and allow
students to earn transferable college credits or an
associate's degree at the same time as a secondary
school diploma.
[(9) Creating community college programs for drop-
outs that are personalized drop-out recovery programs
that allow drop-outs to complete a regular secondary
school diploma and begin college-level work.]
(d) Priority Students.--For eligible entities not using a
cohort approach, the eligible entity shall treat as a priority
student any student in secondary school who is--
(1) eligible to be counted under section 1124(c) of
the Elementary and Secondary Education Act of 1965;
(2) eligible for assistance under a State program
funded under part A or E of title IV of the Social
Security Act (42 U.S.C. 601 et seq., 670 et seq.);
(3) eligible for assistance under subtitle B of title
VII of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11431 et seq.); or
(4) otherwise considered by the eligible entity to be
a disconnected student.
(e) Allowable Providers.--In the case of eligible entities
described in section 404A(c)(1), the activities required by
this section may be provided by service providers such as
community-based organizations, schools, institutions of higher
education, public and private agencies, nonprofit and
philanthropic organizations, businesses, [institutions and
agencies sponsoring programs authorized under subpart 4,] and
other organizations the State determines appropriate.
SEC. 404E. SCHOLARSHIP COMPONENT.
(a) In General.--
(1) States.--In order to receive a grant under this
chapter, an eligible entity described in section
404A(c)(1) shall establish or maintain a financial
assistance program described in section
404C(a)(2)(B)(i) that awards scholarships to students
in accordance with the requirements of this section.
The Secretary shall encourage the eligible entity to
ensure that a scholarship provided pursuant to this
section is available to an eligible student for use at
any institution of higher education.
(2) Partnerships.--An eligible entity described in
section 404A(c)(2) may award scholarships to eligible
students in accordance with the requirements of this
section.
(b) Limitation.--
(1) In general.--Subject to paragraph (2), each
eligible entity described in section 404A(c)(1) that
receives a grant under this chapter shall use not less
than 25 percent and not more than 50 percent of the
grant funds for activities described in section 404D
(except for the activity described in subsection (a)(4)
of such section), with the remainder of such funds to
be used for a scholarship program under this section in
accordance with such subsection.
(2) Exception.--Notwithstanding paragraph (1), the
Secretary may allow an eligible entity to use more than
50 percent of grant funds received under this chapter
for such activities, if the eligible entity
demonstrates that the eligible entity has another means
of providing the students with the financial assistance
described in this section and describes such means in
the application submitted under section 404C.
(c) Notification of Eligibility.--Each eligible entity
providing scholarships under this section shall provide
information on the eligibility requirements for the
scholarships to all participating students upon the students'
entry into the programs assisted under this chapter.
(d) Grant Amounts.--The maximum amount of a scholarship that
an eligible student shall be eligible to receive under this
section shall be established by the eligible entity. The
minimum amount of the scholarship for each fiscal year shall
not be less than the minimum Federal Pell Grant award under
section 401 for such award year.
(e) Portability of Assistance.--
(1) In general.--Each eligible entity described in
section 404A(c)(1) that receives a grant under this
chapter shall hold in reserve, for the students served
by such grant as described in section 404B(d)(1)(A) or
404D(d), [an amount that is not less than the minimum
scholarship amount described in subsection (d),
multiplied by the number of students the eligible
entity estimates will meet the requirements of
paragraph (2).] an estimated amount that is based on
the requirements of the financial assistance program of
the eligible entity described in section
404C(a)(2)(B)(i).
(2) Requirement for portability.--Funds held in
reserve under paragraph (1) shall be made available to
an eligible student when the eligible student has--
(A) completed a secondary school diploma, its
recognized equivalent, or another recognized
alternative standard for individuals with
disabilities; and
(B) enrolled in an institution of higher
education.
(3) Qualified educational expenses.--Funds available
to an eligible student under this subsection may be
used for--
(A) tuition, fees, books, supplies, and
equipment required for the enrollment or
attendance of the eligible student at an
institution of higher education; and
(B) in the case of an eligible student with
special needs, expenses for special needs
services that are incurred in connection with
such enrollment or attendance.
(4) Return of funds.--
(A) Redistribution.--
(i) In general.--Funds held in
reserve under paragraph (1) that are
not used by an eligible student within
six years of the student's scheduled
completion of secondary school may be
redistributed by the eligible entity to
other eligible students.
(ii) Return of excess to the
secretary.--If, after meeting the
requirements of paragraph (1) and, if
applicable, redistributing excess funds
in accordance with clause (i) of this
subparagraph, an eligible entity has
funds held in reserve under paragraph
(1) that remain available, the eligible
entity shall return such remaining
reserved funds to the Secretary for
distribution to other grantees under
this chapter in accordance with the
funding rules described in section
404B(a).
(B) Nonparticipating entity.--Notwithstanding
subparagraph (A), in the case of an eligible
entity that does not receive assistance under
this subpart for six fiscal years, the eligible
entity shall return any funds held in reserve
under paragraph (1) that are not awarded or
obligated to eligible students to the Secretary
for distribution to other grantees under this
chapter.
(f) Relation to Other Assistance.--Scholarships provided
under this section shall not be considered for the purpose of
awarding Federal grant assistance under this title, except that
in no case shall the total amount of student financial
assistance awarded to a student under this title exceed such
student's total cost of attendance.
(g) Eligible Students.--A student eligible for assistance
under this section is a student who--
(1) is less than 22 years old at time of first
scholarship award under this section;
(2) receives a secondary school diploma or its
recognized equivalent on or after January 1, 1993;
(3) is enrolled or accepted for enrollment in a
program of undergraduate instruction at an institution
of higher education that is located within the State's
boundaries, except that, at the State's option, an
eligible entity may offer scholarship program
portability for recipients who attend institutions of
higher education outside such State; and
(4) who participated in the activities required under
section 404D(a).
* * * * * * *
SEC. 404G. EVALUATION AND REPORT.
(a) Evaluation.--Each eligible entity receiving a grant under
this chapter shall biennially evaluate the activities assisted
under this chapter in accordance with the standards described
in subsection (b) and shall submit to the Secretary a copy of
such evaluation. The evaluation shall permit service providers
to track eligible student progress during the period such
students are participating in the activities and shall be
consistent with the standards developed by the Secretary
pursuant to subsection (b).
(b) Evaluation Standards.--The Secretary shall prescribe
standards for the evaluation described in subsection (a). Such
standards shall--
(1) provide for input from eligible entities and
service providers; [and]
(2) ensure that data protocols and procedures are
consistent and uniform[.]; and
(3) include the following metrics:
(A) the number of students completing the
Free Application for Federal Student Aid;
(B) the enrollment of participating students
in curricula and coursework designed to reduce
the need for remedial coursework at the
postsecondary level;
(C) if applicable, the number of students
receiving a scholarship;
(D) the graduation rate of participating
students from high school;
(E) the enrollment of participating students
into postsecondary education; and
(F) such other information as the Secretary
may require.
(c) Federal Evaluation.--In order to evaluate and improve the
impact of the activities assisted under this chapter, the
Secretary shall, from not more than 0.75 percent of the funds
appropriated under section 404H for a fiscal year, award one or
more grants, contracts, or cooperative agreements to or with
public and private institutions and organizations, to enable
the institutions and organizations to evaluate the
effectiveness of the program and, as appropriate, disseminate
the results of the evaluation. Such evaluation shall include a
separate analysis of--
(1) the implementation of the scholarship component
described in section 404E; and
(2) the use of methods for complying with matching
requirements described in paragraphs (1) and (2) of
section 404C(c).
(d) Report.--The Secretary shall biennially report to
Congress regarding the activities assisted under this chapter
and the evaluations conducted pursuant to this section.
SEC. 404H. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
chapter [$400,000,000 for fiscal year 2009 and such sums as may
be necessary for each of the five succeeding fiscal years]
$339,754,000 for fiscal year 2019 and each of the five
succeeding fiscal years.
[Subpart 3--Federal Supplemental Educational Opportunity Grants
[SEC. 413A. PURPOSE; APPROPRIATIONS AUTHORIZED.
[(a) Purpose of Subpart.--It is the purpose of this subpart
to provide, through institutions of higher education,
supplemental grants to assist in making available the benefits
of postsecondary education to qualified students who
demonstrate financial need in accordance with the provisions of
part F of this title.
[(b) Authorization of Appropriations.--(1) For the purpose of
enabling the Secretary to make payments to institutions of
higher education which have made agreements with the Secretary
in accordance with section 413C(a), for use by such
institutions for payments to undergraduate students of
supplemental grants awarded to them under this subpart, there
are authorized to be appropriated such sums as may be necessary
for fiscal year 2009 and each of the five succeeding fiscal
years.
[(2) Sums appropriated pursuant to this subsection for any
fiscal year shall be available for payments to institutions
until the end of the second fiscal year succeeding the fiscal
year for which such sums were appropriated.
[SEC. 413B. AMOUNT AND DURATION OF GRANTS.
[(a) Amount of Grant.--(1) Except as provided in paragraph
(3), from the funds received by it for such purpose under this
subpart, an institution which awards a supplemental grant to a
student for an academic year under this subpart shall, for each
year, pay to that student an amount not to exceed the lesser of
(A) the amount determined by the institution, in accordance
with the provisions of part F of this title, to be needed by
that student to enable the student to pursue a course of study
at the institution or in a program of study abroad that is
approved for credit by the institution at which the student is
enrolled, or (B) $4,000.
[(2) If the amount determined under paragraph (1) with
respect to a student for any academic year is less than $100,
no payment shall be made to that student for that year. For a
student enrolled for less than a full academic year, the
minimum payment required shall be reduced proportionately.
[(3) For students participating in study abroad programs, the
institution shall consider all reasonable costs associated with
such study abroad when determining student eligibility. The
amount of grant to be awarded in such cases may exceed the
maximum amount of $4,000 by as much as $400 if reasonable study
abroad costs exceed the cost of attendance at the home
institution.
[(b) Period for Receipt of Grants; Continuing Eligibility.--
(1) The period during which a student may receive supplemental
grants shall be the period required for the completion of the
first undergraduate baccalaureate course of study being pursued
by that student.
[(2) A supplemental grant awarded under this subpart shall
entitle the student (to whom it is awarded) to payments
pursuant to such grant only if the student meets the
requirements of section 484, except as provided in section
413C(c).
[(c) Distribution of Grant During Academic Year.--Nothing in
this section shall be construed to prohibit an institution from
making payments of varying amounts from a supplemental grant to
a student during an academic year to cover costs for a period
which are not applicable to other periods of such academic
year.
[SEC. 413C. AGREEMENTS WITH INSTITUTIONS; SELECTION OF RECIPIENTS.
[(a) Institutional Eligibility.--Assistance may be made
available under this subpart only to an institution which--
[(1) has, in accordance with section 487, an
agreement with the Secretary applicable to this
subpart;
[(2) agrees that the Federal share of awards under
this subpart will not exceed 75 percent of such awards,
except that the Federal share may be exceeded if the
Secretary determines, pursuant to regulations
establishing objective criteria for such
determinations, that a larger Federal share is required
to further the purpose of this subpart; and
except that the Federal share may be exceeded if the
Secretary determines, pursuant to regulations
establishing objective criteria for such
determinations, that a larger Federal share is required
to further the purpose of this subpart; and
[(3) agrees that the non-Federal share of awards made
under this subpart shall be made from the institution's
own resources, including--
[(A) institutional grants and scholarships;
[(B) tuition or fee waivers;
[(C) State scholarships; and
[(D) foundation or other charitable
organization funds.
[(b) Eligibility for Selection.--Awards may be made under
this subpart only to a student who--
[(1) is an eligible student under section 484; and
[(2) makes application at a time and in a manner
consistent with the requirements of the Secretary and
that institution.
[(c) Selection of Individuals and Determination of Amount of
Awards.--(1) From among individuals who are eligible for
supplemental grants for each fiscal year, the institution
shall, in accordance with the agreement under section 487, and
within the amount allocated to the institution for that purpose
for that year under section 413D, select individuals who are to
be awarded such grants and determine, in accordance with
section 413B, the amounts to be paid to them.
[(2)(A) In carrying out paragraph (1) of this subsection,
each institution of higher education shall, in the agreement
made under section 487, assure that the selection procedures--
[(i) will be designed to award supplemental grants
under this subpart, first, to students with exceptional
need, and
[(ii) will give a priority for supplemental grants
under this subpart to students who receive Pell Grants
and meet the requirements of section 484.
[(B) For the purpose of subparagraph (A), the term ``students
with exceptional need'' means students with the lowest expected
family contributions at the institution.
[(d) Use of Funds for Less-Than-Full-Time Students.--If the
institution's allocation under this subpart is directly or
indirectly based in part on the financial need demonstrated by
students who are independent students or attending the
institution on less than a full-time basis, then a reasonable
proportion of the allocation shall be made available to such
students.
[(e) Use and Transfer of Funds for Administrative Expenses.--
An agreement entered into pursuant to this section shall
provide that funds granted to an institution of higher
education may be used only to make payments to students
participating in a grant program authorized under this subpart,
except that an institution may use a portion of the sums
allocated to it under this subpart to meet administrative
expenses in accordance with section 489 of this title.
[SEC. 413D. ALLOCATION OF FUNDS.
[(a) Allocation Based on Previous Allocation.--(1) From the
amount appropriated pursuant to section 413A(b) for each fiscal
year, the Secretary shall first allocate to each eligible
institution an amount equal to 100 percent of the amount such
institution received under subsections (a) and (b) of this
section for fiscal year 1999 (as such subsections were in
effect with respect to allocations for such fiscal year).
[(2)(A) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this subpart after fiscal
year 1999 but is not a first or second time participant, an
amount equal to the greater of--
[(i) $5,000; or
[(ii) 90 percent of the amount received and used
under this subpart for the first year it participated
in the program.
[(B) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this subpart after fiscal
year 1999 and is a first or second time participant, an amount
equal to the greatest of--
[(i) $5,000;
[(ii) an amount equal to (I) 90 percent of the amount
received and used under this subpart in the second
preceding fiscal year by eligible institutions offering
comparable programs of instruction, divided by (II) the
number of students enrolled at such comparable
institutions in such fiscal year, multiplied by (III)
the number of students enrolled at the applicant
institution in such fiscal year; or
[(iii) 90 percent of the institution's allocation
under this part for the preceding fiscal year.
[(C) Notwithstanding subparagraphs (A) and (B) of this
paragraph, the Secretary shall allocate to each eligible
institution which
[(i) was a first-time participant in the program in
fiscal year 2000 or any subsequent fiscal year, and
[(ii) received a larger amount under this subsection
in the second year of participation,
an amount equal to 90 percent of the amount it received under
this subsection in its second year of participation.
[(3)(A) If the amount appropriated for any fiscal year is
less than the amount required to be allocated to all
institutions under paragraph (1) of this subsection, then the
amount of the allocation to each such institution shall be
ratably reduced.
[(B) If the amount appropriated for any fiscal year is more
than the amount required to be allocated to all institutions
under paragraph (1) but less than the amount required to be
allocated to all institutions under paragraph (2), then--
[(i) the Secretary shall allot the amount required to
be allocated to all institutions under paragraph (1),
and
[(ii) the amount of the allocation to each
institution under paragraph (2) shall be ratably
reduced.
[(C) If additional amounts are appropriated for any such
fiscal year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount allocated
equals the amount required to be allocated under paragraphs (1)
and (2) of this subsection).
[(4)(A) Notwithstanding any other provision of this section,
the Secretary may allocate an amount equal to not more than 10
percent of the amount by which the amount appropriated in any
fiscal year to carry out this part exceeds $700,000,000 among
eligible institutions described in subparagraph (B).
[(B) In order to receive an allocation pursuant to
subparagraph (A) an institution shall be an eligible
institution from which 50 percent or more of the Pell Grant
recipients attending such eligible institution graduate from or
transfer to a 4-year institution of higher education.
[(b) Allocation of Excess Based on Fair Share.--(1) From the
remainder of the amount appropriated pursuant to section
413A(b) for each year (after making the allocations required by
subsection (a)), the Secretary shall allocate to each eligible
institution which has an excess eligible amount an amount which
bears the same ratio to such remainder as such excess eligible
amount bears to the sum of the excess eligible amounts of all
such eligible institutions (having such excess eligible
amounts).
[(2) For any eligible institution, the excess eligible amount
is the amount, if any, by which--
[(A)(i) the amount of that institution's need (as
determined under subsection (c)), divided by (ii) the
sum of the need of all institutions (as so determined),
multiplied by (iii) the amount appropriated pursuant to
section 413A(b) of the fiscal year; exceeds
[(B) the amount required to be allocated to that
institution under subsection (a).
[(c) Determination of Institution's Need.--(1) The amount of
an institution's need is equal to--
[(A) the sum of the need of the institution's
eligible undergraduate students; minus
[(B) the sum of grant aid received by students under
subparts 1 and 3 of this part.
[(2) To determine the need of an institution's eligible
undergraduate students, the Secretary shall--
[(A) establish various income categories for
dependent and independent undergraduate students;
[(B) establish an expected family contribution for
each income category of dependent and independent
undergraduate students, determined on the basis of the
average expected family contribution (computed in
accordance with part F of this title) of a
representative sample within each income category for
the second preceding fiscal year;
[(C) compute 75 percent of the average cost of
attendance for all undergraduate students;
[(D) multiply the number of eligible dependent
students in each income category by 75 percent of the
average cost of attendance for all undergraduate
students determined under subparagraph (C), minus the
expected family contribution determined under
subparagraph (B) for that income category, except that
the amount computed by such subtraction shall not be
less than zero;
[(E) add the amounts determined under subparagraph
(D) for each income category of dependent students;
[(F) multiply the number of eligible independent
students in each income category by 75 percent of the
average cost of attendance for all undergraduate
students determined under subparagraph (C), minus the
expected family contribution determined under
subparagraph (B) for that income category, except that
the amount computed by such subtraction shall not be
less than zero;
[(G) add the amounts determined under subparagraph
(F) for each income category of independent students;
and
[(H) add the amounts determined under subparagraphs
(E) and (G).
[(3)(A) For purposes of paragraph (2), the term ``average
cost of attendance'' means the average of the attendance costs
for undergraduate students which shall include (i) tuition and
fees determined in accordance with subparagraph (B), (ii)
standard living expenses determined in accordance with
subparagraph (C), and (iii) books and supplies determined in
accordance with subparagraph (D).
[(B) The average undergraduate tuition and fees described in
subparagraph (A)(i) shall be computed on the basis of
information reported by the institution to the Secretary, which
shall include (i) total revenue received by the institution
from undergraduate tuition and fees for the second year
preceding the year for which it is applying for an allocation,
and (ii) the institution's enrollment for such second preceding
year.
[(C) The standard living expense described in subparagraph
(A)(ii) is equal to 150 percent of the difference between the
income protection allowance for a family of five with one in
college and the income protection allowance for a family of six
with one in college for a single independent student.
[(D) The allowance for books and supplies described in
subparagraph (A)(iii) is equal to $600.
[(d) Reallocation of Excess Allocations.--(1) If an
institution returns to the Secretary any portion of the sums
allocated to such institution under this section for any fiscal
year the Secretary shall, in accordance with regulations,
reallocate such excess to other institutions.
[(2) If under paragraph (1) of this subsection an institution
returns more than 10 percent of its allocation, the
institution's allocation for the next fiscal year shall be
reduced by the amount returned. The Secretary may waive this
paragraph for a specific institution if the Secretary finds
that enforcing this paragraph would be contrary to the interest
of the program.
[(e) Filing Deadlines.--The Secretary shall, from time to
time, set dates before which institutions must file
applications for allocations under this part.
[SEC. 413E. CARRYOVER AND CARRYBACK AUTHORITY.
[(a) Carryover Authority.--Of the sums made available to an
eligible institution under this subpart for a fiscal year, not
more than 10 percent may, at the discretion of the institution,
remain available for expenditure during the succeeding fiscal
year to carry out the program under this subpart.
[(b) Carryback Authority.--
[(1) In general.--Of the sums made available to an
eligible institution under this subpart for a fiscal
year, not more than 10 percent may, at the discretion
of the institution, be used by the institution for
expenditure for the fiscal year preceding the fiscal
year for which the sums were appropriated.
[(2) Use of carried-back funds.--An eligible
institution may make grants to students after the end
of the academic year, but prior to the beginning of the
succeeding fiscal year, from such succeeding fiscal
year's appropriations.
[Subpart 4--Leveraging Educational Assistance Partnership Program
[SEC. 415A. PURPOSE; APPROPRIATIONS AUTHORIZED.
[(a) Purpose of Subpart.--It is the purpose of this subpart
to make incentive grants available to States to assist States
in--
[(1) providing grants to--
[(A) eligible students attending institutions
of higher education or participating in
programs of study abroad that are approved for
credit by institutions of higher education at
which such students are enrolled; and
[(B) eligible students for campus-based
community service work-study; and
[(2) carrying out the activities described in section
415E.
[(b) Authorization of Appropriations; Availability.--
[(1) In general.--There are authorized to be
appropriated to carry out this subpart $200,000,000 for
fiscal year 2009 and such sums as may be necessary for
each of the five succeeding fiscal years.
[(2) Reservation.--For any fiscal year for which the
amount appropriated under paragraph (1) exceeds
$30,000,000, the excess amount shall be available to
carry out section 415E.
[(3) Availability.--Sums appropriated pursuant to the
authority of paragraph (1) for any fiscal year shall
remain available for payments to States under this
subpart until the end of the fiscal year succeeding the
fiscal year for which such sums were appropriated.
[SEC. 415B. ALLOTMENT AMONG STATES.
[(a) Allotment Based on Number of Eligible Students in
Attendance.--(1) From the sums appropriated pursuant to section
415A(b)(1) and not reserved under section 415A(b)(2) for any
fiscal year, the Secretary shall allot to each State an amount
which bears the same ratio to such sums as the number of
students who are deemed eligible in such State for
participation in the grant program authorized by this subpart
bears to the total number of such students in all the States,
except that no State shall receive less than the State received
for fiscal year 1979.
[(2) For the purpose of this subsection, the number of
students who are deemed eligible in a State for participation
in the grant program authorized by this subpart, and the number
of such students in all the States, shall be determined for the
most recent year for which satisfactory data are available.
[(b) Reallotment.--The amount of any State's allotment under
subsection (a) for any fiscal year which the Secretary
determines will not be required for such fiscal year for the
leveraging educational assistance partnership program of that
State shall be available for reallotment from time to time, on
such dates during such year as the Secretary may fix, to other
States in proportion to the original allotments to such States
under such part for such year, but with such proportionate
amount for any of such States being reduced to the extent it
exceeds the sum the Secretary estimates such State needs and
will be able to use for such year for carrying out the State
plan. The total of such reductions shall be similarly
reallotted among the States whose proportionate amounts were
not so reduced. Any amount reallotted to a State under this
part during a year from funds appropriated pursuant to section
415A(b)(1) shall be deemed part of its allotment under
subsection (a) for such year.
[(c) Allotments Subject to Continuing Compliance.--The
Secretary shall make payments for continuing incentive grants
only to States which continue to meet the requirements of
section 415C(b).
[SEC. 415C. APPLICATIONS FOR LEVERAGING EDUCATIONAL ASSISTANCE
PARTNERSHIP PROGRAMS.
[(a) Submission and Contents of Applications.--A State which
desires to obtain a payment under this subpart for any fiscal
year shall submit annually an application therefor through the
State agency administering its program under this subpart as of
July 1, 1985, unless the Governor of that State so designates,
in writing, a different agency to administer the program. The
application shall contain such information as may be required
by, or pursuant to, regulation for the purpose of enabling the
Secretary to make the determinations required under this
subpart.
[(b) Payment of Federal Share of Grants Made by Qualified
Program.--From a State's allotment under this subpart for any
fiscal year the Secretary is authorized to make payments to
such State for paying up to 50 percent of the amount of student
grants pursuant to a State program which--
[(1) is administered by a single State agency;
[(2) provides that such grants will be in amounts not
to exceed the lesser of $12,500 or the student's cost
of attendance per academic year (A) for attendance on a
full-time basis at an institution of higher education,
and (B) for campus-based community service work
learning study jobs;
[(3) provides that--
[(A) not more than 20 percent of the
allotment to the State for each fiscal year may
be used for the purpose described in paragraph
(2)(B);
[(B) grants for the campus-based community
work learning study jobs may be made only to
students who are otherwise eligible for
assistance under this subpart; and
[(C) grants for such jobs be made in
accordance with the provisions of section
443(b)(1);
[(4) provides for the selection of recipients of such
grants or of such State work-study jobs on the basis of
substantial financial need determined annually on the
basis of criteria established by the State and approved
by the Secretary, except that for the purpose of
collecting data to make such determination of financial
need, no student or parent shall be charged a fee that
is payable to an entity other than such State;
[(5) provides that, effective with respect to any
academic year beginning on or after October 1, 1978,
all nonprofit institutions of higher education in the
State are eligible to participate in the State program,
except in any State in which participation of nonprofit
institutions of higher education is in violation of the
constitution of the State or in any State in which
participation of nonprofit institutions of higher
education is in violation of a statute of the State
which was enacted prior to October 1, 1978;
[(6) provides for the payment of the non-Federal
portion of such grants or of such work-study jobs from
funds supplied by such State which represent an
additional expenditure for such year by such State for
grants or work-study jobs for students attending
institutions of higher education over the amount
expended by such State for such grants or work-study
jobs, if any, during the second fiscal year preceding
the fiscal year in which such State initially received
funds under this subpart;
[(7) provides that if the State's allocation under
this subpart is based in part on the financial need
demonstrated by students who are independent students
or attending the institution less than full time, a
reasonable proportion of the State's allocation shall
be made available to such students;
[(8) provides for State expenditures under such
program of an amount not less than the average annual
aggregate expenditures for the preceding three fiscal
years or the average annual expenditure per full-time
equivalent student for such years;
[(9) provides (A) for such fiscal control and fund
accounting procedures as may be necessary to assure
proper disbursement of and accounting for Federal funds
paid to the State agency under this subpart, and (B)
for the making of such reports, in such form and
containing such information, as may be reasonably
necessary to enable the Secretary to perform his
functions under this subpart;
[(10) for any academic year beginning after June 30,
1987, provides the non-Federal share of the amount of
student grants or work-study jobs under this subpart
through State funds for the program under this subpart;
and
[(11) provides notification to eligible students that
such grants are--
[(A) Leveraging Educational Assistance
Partnership Grants; and
[(B) funded by the Federal Government, the
State, and, where applicable, other
contributing partners.
[(c) Reservation and Disbursement of Allotments and
Reallotments.--Upon his approval of any application for a
payment under this subpart, the Secretary shall reserve from
the applicable allotment (including any applicable reallotment)
available therefor, the amount of such payment, which (subject
to the limits of such allotment or reallotment) shall be equal
to the Federal share of the cost of the students' incentive
grants or work-study jobs covered by such application. The
Secretary shall pay such reserved amount, in advance or by way
of reimbursement, and in such installments as the Secretary may
determine. The Secretary may amend the reservation of any
amount under this section, either upon approval of an amendment
of the application or upon revision of the estimated cost of
the student grants or work-study jobs with respect to which
such reservation was made. If the Secretary approves an upward
revision of such estimated cost, the Secretary may reserve the
Federal share of the added cost only from the applicable
allotment (or reallotment) available at the time of such
approval.
[SEC. 415D. ADMINISTRATION OF STATE PROGRAMS; JUDICIAL REVIEW.
[(a) Disapproval of Applications; Suspension of
Eligibility.--(1) The Secretary shall not finally disapprove
any application for a State program submitted under section
415C, or any modification thereof, without first affording the
State agency submitting the program reasonable notice and
opportunity for a hearing.
[(2) Whenever the Secretary, after reasonable notice and
opportunity for hearing to the State agency administering a
State program approved under this subpart, finds--
[(A) that the State program has been so changed that
it no longer complies with the provisions of this
subpart, or
[(B) that in the administration of the program there
is a failure to comply substantially with any such
provisions,
the Secretary shall notify such State agency that the State
will not be regarded as eligible to participate in the program
under this subpart until he is satisfied that there is no
longer any such failure to comply.
[(b) Review of Decisions.--(1) If any State is dissatisfied
with the Secretary's final action with respect to the approval
of its State program submitted under this subpart or with his
final action under subsection (a), such State may appeal to the
United States court of appeals for the circuit in which such
State is located. The summons and notice of appeal may be
served at any place in the United States. The Commissioner
shall forthwith certify and file in the court the transcript of
the proceedings and the record on which he based his action.
[(2) The findings of fact by the Secretary, if supported by
substantial evidence, shall be conclusive; but the court, for
good cause shown, may remand the case to the Secretary to take
further evidence, and the Secretary may thereupon make new or
modified findings of fact and may modify his previous action,
and shall certify to the court the transcript and record of
further proceedings. Such new or modified findings of fact
shall likewise be conclusive if supported by substantial
evidence.
[(3) The court shall have jurisdiction to affirm the action
of the Secretary or to set it aside, in whole or in part. The
judgment of the court shall be subject to review by the Supreme
Court of the United States upon certiorari or certification as
provided in title 28, United States Code, section 1254.
[SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE.
[(a) Purpose.--It is the purpose of this section to expand
college access and increase college persistence by making
allotments to States to enable the States to--
[(1) expand and enhance partnerships with
institutions of higher education, early information and
intervention, mentoring, or outreach programs, private
corporations, philanthropic organizations, and other
interested parties, including community-based
organizations, in order to--
[(A) carry out activities under this section;
and
[(B) provide coordination and cohesion among
Federal, State, and local governmental and
private efforts that provide financial
assistance to help low-income students attend
an institution of higher education;
[(2) provide need-based grants for access and
persistence to eligible low-income students;
[(3) provide early notification to low-income
students of the students' eligibility for financial
aid; and
[(4) encourage increased participation in early
information and intervention, mentoring, or outreach
programs.
[(b) Allotments to States.--
[(1) In general.--
[(A) Authorization.--From sums reserved under
section 415A(b)(2) for each fiscal year, the
Secretary shall make an allotment to each State
that submits an application for an allotment in
accordance with subsection (c) to enable the
State to pay the Federal share, as described in
paragraph (2), of the cost of carrying out the
activities under subsection (d).
[(B) Determination of allotment.--In making
allotments under subparagraph (A), the
Secretary shall consider the following:
[(i) Continuation of award.--Except
as provided in clause (ii), if a State
continues to meet the specifications
established in such State's application
under subsection (c), the Secretary
shall make an allotment to such State
that is not less than the allotment
made to such State for the previous
fiscal year.
[(ii) Special continuation and
transition rule.--If a State that
applied for and received an allotment
under this section for fiscal year 2010
pursuant to subsection (j) meets the
specifications established in the
State's application under subsection
(c) for fiscal year 2011, then the
Secretary shall make an allotment to
such State for fiscal year 2011 that is
not less than the allotment made
pursuant to subsection (j) to such
State for fiscal year 2010 under this
section (as this section was in effect
on the day before the date of enactment
of the Higher Education Opportunity Act
(Public Law 110-315)).
[(iii) Priority.--The Secretary shall
give priority in making allotments to
States that meet the requirements
described in paragraph (2)(B)(ii).
[(2) Federal share.--
[(A) In general.--The Federal share of the
cost of carrying out the activities under
subsection (d) for any fiscal year shall not
exceed 66.66 percent.
[(B) Different percentages.--The Federal
share under this section shall be determined in
accordance with the following:
[(i) The Federal share of the cost of
carrying out the activities under
subsection (d) shall be 57 percent if a
State applies for an allotment under
this section in partnership with any
number of degree-granting institutions
of higher education in the State whose
combined full-time enrollment
represents less than a majority of all
students attending institutions of
higher education in the State, and--
[(I) philanthropic
organizations that are located
in, or that provide funding in,
the State; or
[(II) private corporations
that are located in, or that do
business in, the State.
[(ii) The Federal share of the cost
of carrying out the activities under
subsection (d) shall be 66.66 percent
if a State applies for an allotment
under this section in partnership with
any number of degree-granting
institutions of higher education in the
State whose combined full-time
enrollment represents a majority of all
students attending institutions of
higher education in the State, and--
[(I) philanthropic
organizations that are located
in, or that provide funding in,
the State; or
[(II) private corporations
that are located in, or that do
business in, the State.
[(C) Non-federal share.--
[(i) In general.--The non-Federal
share under this section may be
provided in cash or in kind, fairly
evaluated.
[(ii) In-kind contribution.--For the
purpose of calculating the non-Federal
share under this subparagraph, an in-
kind contribution is a non-cash
contribution that--
[(I) has monetary value, such
as the provision of--
[(aa) room and board;
or
[(bb) transportation
passes; and
[(II) helps a student meet
the cost of attendance at an
institution of higher
education.
[(iii) Effect on need analysis.--For
the purpose of calculating a student's
need in accordance with part F, an in-
kind contribution described in clause
(ii) shall not be considered an asset
or income of the student or the
student's parent.
[(c) Application for Allotment.--
[(1) In general.--
[(A) Submission.--A State that desires to
receive an allotment under this section on
behalf of a partnership described in paragraph
(3) shall submit an application to the
Secretary at such time, in such manner, and
containing such information as the Secretary
may require.
[(B) Content.--An application submitted under
subparagraph (A) shall include the following:
[(i) A description of the State's
plan for using the allotted funds.
[(ii) An assurance that the State
will provide matching funds, in cash or
in kind, from State, institutional,
philanthropic, or private funds, of not
less than 33.33 percent of the cost of
carrying out the activities under
subsection (d). The State shall specify
the methods by which matching funds
will be paid. A State that uses non-
Federal funds to create or expand
partnerships with entities described in
subsection (a)(1), in which such
entities match State funds for student
scholarships, may apply such matching
funds from such entities toward
fulfilling the State's matching
obligation under this clause.
[(iii) An assurance that the State
will use funds provided under this
section to supplement, and not
supplant, Federal and State funds
available for carrying out the
activities under this title.
[(iv) An assurance that early
information and intervention,
mentoring, or outreach programs exist
within the State or that there is a
plan to make such programs widely
available.
[(v) A description of the
organizational structure that the State
has in place to administer the
activities under subsection (d),
including a description of how the
State will compile information on
degree completion of students receiving
grants under this section.
[(vi) A description of the steps the
State will take to ensure that students
who receive grants under this section
persist to degree completion.
[(vii) An assurance that the State
has a method in place, such as
acceptance of the automatic zero
expected family contribution
determination described in section
479(c), to identify eligible low-income
students and award State grant aid to
such students.
[(viii) An assurance that the State
will provide notification to eligible
low-income students that grants under
this section are--
[(I) Leveraging Educational
Assistance Partnership Grants;
and
[(II) funded by the Federal
Government and the State, and,
where applicable, other
contributing partners.
[(2) State agency.--The State agency that submits an
application for a State under section 415C(a) shall be
the same State agency that submits an application under
paragraph (1) for such State.
[(3) Partnership.--In applying for an allotment under
this section, the State agency shall apply for the
allotment in partnership with--
[(A) not less than one public and one private
degree-granting institution of higher education
that are located in the State, if applicable;
[(B) new or existing early information and
intervention, mentoring, or outreach programs
located in the State; and
[(C) not less than one--
[(i) philanthropic organization
located in, or that provides funding
in, the State; or
[(ii) private corporation located in,
or that does business in, the State.
[(4) Roles of partners.--
[(A) State agency.--A State agency that is in
a partnership receiving an allotment under this
section--
[(i) shall--
[(I) serve as the primary
administrative unit for the
partnership;
[(II) provide or coordinate
non-Federal share funds, and
coordinate activities among
partners;
[(III) encourage each
institution of higher education
in the State to participate in
the partnership;
[(IV) make determinations and
early notifications of
assistance as described under
subsection (d)(2); and
[(V) annually report to the
Secretary on the partnership's
progress in meeting the purpose
of this section; and
[(ii) may provide early information
and intervention, mentoring, or
outreach programs.
[(B) Degree-granting institutions of higher
education.--A degree-granting institution of
higher education that is in a partnership
receiving an allotment under this section--
[(i) shall--
[(I) recruit and admit
participating qualified
students and provide such
additional institutional grant
aid to participating students
as agreed to with the State
agency;
[(II) provide support
services to students who
receive grants for access and
persistence under this section
and are enrolled at such
institution; and
[(III) assist the State in
the identification of eligible
students and the dissemination
of early notifications of
assistance as agreed to with
the State agency; and
[(ii) may provide funding for early
information and intervention,
mentoring, or outreach programs or
provide such services directly.
[(C) Programs.--An early information and
intervention, mentoring, or outreach program
that is in a partnership receiving an allotment
under this section shall provide direct
services, support, and information to
participating students.
[(D) Philanthropic organization or private
corporation.--A philanthropic organization or
private corporation that is in a partnership
receiving an allotment under this section shall
provide funds for grants for access and
persistence for participating students, or
provide funds or support for early information
and intervention, mentoring, or outreach
programs.
[(d) Authorized Activities.--
[(1) In general.--
[(A) Establishment of partnership.--Each
State receiving an allotment under this section
shall use the funds to establish a partnership
to award grants for access and persistence to
eligible low-income students in order to
increase the amount of financial assistance
such students receive under this subpart for
undergraduate education expenses.
[(B) Amount of grants.--The amount of a grant
for access and persistence awarded by a State
to a student under this section shall be not
less than--
[(i) the average undergraduate
tuition and mandatory fees at the
public institutions of higher education
in the State where the student resides
that are of the same type of
institution as the institution of
higher education the student attends;
minus
[(ii) other Federal and State aid the
student receives.
[(C) Special rules.--
[(i) Partnership institutions.--A
State receiving an allotment under this
section may restrict the use of grants
for access and persistence under this
section by awarding the grants only to
students attending institutions of
higher education that are participating
in the partnership.
[(ii) Out-of-state institutions.--If
a State provides grants through another
program under this subpart to students
attending institutions of higher
education located in another State,
grants awarded under this section may
be used at institutions of higher
education located in another State.
[(2) Early notification.--
[(A) In general.--Each State receiving an
allotment under this section shall annually
notify low-income students in grades seven
through 12 in the State, and their families, of
their potential eligibility for student
financial assistance, including an access and
persistence grant, to attend an institution of
higher education.
[(B) Content of notice.--The notice under
subparagraph (A)--
[(i) shall include--
[(I) information about early
information and intervention,
mentoring, or outreach programs
available to the student;
[(II) information that a
student's eligibility for a
grant for access and
persistence is enhanced through
participation in an early
information and intervention,
mentoring, or outreach program;
[(III) an explanation that
student and family eligibility
for, and participation in,
other Federal means-tested
programs may indicate
eligibility for a grant for
access and persistence and
other student aid programs;
[(IV) a nonbinding estimate
of the total amount of
financial aid that a low-income
student with a similar income
level may expect to receive,
including an estimate of the
amount of a grant for access
and persistence and an estimate
of the amount of grants, loans,
and all other available types
of aid from the major Federal
and State financial aid
programs;
[(V) an explanation that in
order to be eligible for a
grant for access and
persistence, at a minimum, a
student shall--
[(aa) meet the
requirement under
paragraph (3);
[(bb) graduate from
secondary school; and
[(cc) enroll at an
institution of higher
education--
[(AA) that is
a partner in
the
partnership; or
[(BB) with
respect to
which
attendance is
permitted under
subsection
(d)(1)(C)(ii);
[(VI) information on any
additional requirements (such
as a student pledge detailing
student responsibilities) that
the State may impose for
receipt of a grant for access
and persistence under this
section; and
[(VII) instructions on how to
apply for a grant for access
and persistence and an
explanation that a student is
required to file a Free
Application for Federal Student
Aid authorized under section
483(a) to be eligible for such
grant and assistance from other
Federal and State financial aid
programs; and
[(ii) may include a disclaimer that
grant awards for access and persistence
are contingent on--
[(I) a determination of the
student's financial eligibility
at the time of the student's
enrollment at an institution of
higher education that is a
partner in the partnership or
qualifies under subsection
(d)(1)(C)(ii);
[(II) annual Federal and
State spending for higher
education; and
[(III) other aid received by
the student at the time of the
student's enrollment at such
institution of higher
education.
[(3) Eligibility.--In determining which students are
eligible to receive grants for access and persistence,
the State shall ensure that each such student complies
with the following subparagraph (A) or (B):
[(A) Meets not less than two of the following
criteria, with priority given to students
meeting all of the following criteria:
[(i) Has an expected family
contribution equal to zero, as
determined under part F, or a
comparable alternative based upon the
State's approved criteria in section
415C(b)(4).
[(ii) Qualifies for the State's
maximum undergraduate award, as
authorized under section 415C(b).
[(iii) Is participating in, or has
participated in, a Federal, State,
institutional, or community early
information and intervention,
mentoring, or outreach program, as
recognized by the State agency
administering activities under this
section.
[(B) Is receiving, or has received, a grant
for access and persistence under this section,
in accordance with paragraph (5).
[(4) Grant award.--Once a student, including those
students who have received early notification under
paragraph (2) from the State, applies for admission to
an institution that is a partner in the partnership,
files a Free Application for Federal Student Aid and
any related State form, and is determined eligible by
the State under paragraph (3), the State shall--
[(A) issue the student a preliminary award
certificate for a grant for access and
persistence with estimated award amounts; and
[(B) inform the student that payment of the
grant for access and persistence award amounts
is subject to certification of enrollment and
award eligibility by the institution of higher
education.
[(5) Duration of award.--An eligible student who
receives a grant for access and persistence under this
section shall receive such grant award for each year of
such student's undergraduate education in which the
student remains eligible for assistance under this
title, including pursuant to section 484(c), and
remains financially eligible as determined by the
State, except that the State may impose reasonable time
limits to degree completion.
[(e) Administrative Cost Allowance.--A State that receives an
allotment under this section may reserve not more than two
percent of the funds made available annually through the
allotment for State administrative functions required to carry
out this section.
[(f) Statutory and Regulatory Relief for Institutions of
Higher Education.--The Secretary may grant, upon the request of
an institution of higher education that is in a partnership
described in subsection (b)(2)(B)(ii) and that receives an
allotment under this section, a waiver for such institution
from statutory or regulatory requirements that inhibit the
ability of the institution to successfully and efficiently
participate in the activities of the partnership.
[(g) Applicability Rule.--The provisions of this subpart that
are not inconsistent with this section shall apply to the
program authorized by this section.
[(h) Maintenance of Effort Requirement.--Each State receiving
an allotment under this section for a fiscal year shall provide
the Secretary with an assurance that the aggregate amount
expended per student or the aggregate expenditures by the
State, from funds derived from non-Federal sources, for the
authorized activities described in subsection (d) for the
preceding fiscal year were not less than the amount expended
per student or the aggregate expenditure by the State for the
activities for the second preceding fiscal year.
[(i) Special Rule.--Notwithstanding subsection (h), for
purposes of determining a State's share of the cost of the
authorized activities described in subsection (d), the State
shall consider only those expenditures from non-Federal sources
that exceed the State's total expenditures for need-based
grants, scholarships, and work-study assistance for fiscal year
1999 (including any such assistance provided under this
subpart).
[(j) Continuation and Transition.--For the two-year period
that begins on the date of enactment of the Higher Education
Opportunity Act, the Secretary shall continue to award grants
under section 415E of the Higher Education Act of 1965 as such
section existed on the day before the date of enactment of the
Higher Education Opportunity Act to States that choose to apply
for grants under such predecessor section.
[(k) Reports.--Not later than three years after the date of
enactment of the Higher Education Opportunity Act and annually
thereafter, the Secretary shall submit a report describing the
activities and the impact of the partnerships under this
section to the authorizing committees.
[SEC. 415F. DEFINITION.
[For the purpose of this subpart, the term ``community
service'' means services, including direct service, planning,
and applied research which are identified by an institution of
higher education, through formal or informal consultation with
local nonprofit, governmental, and community-based
organizations, and which--
[(1) are designed to improve the quality of life for
community residents, particularly low-income
individuals, or to solve particular problems related to
the needs of such residents, including but not limited
to, such fields as health care, child care, education,
literacy training, welfare, social services, public
safety, crime prevention and control, transportation,
recreation, housing and neighborhood improvement, rural
development, and community improvement; and
[(2) provide participating students with work-
learning opportunities related to their educational or
vocational programs or goals.
Subpart 5--Special Programs for Students Whose Families Are Engaged in
Migrant and Seasonal Farmwork
SEC. 418A. MAINTENANCE AND EXPANSION OF EXISTING PROGRAMS.
(a) Program Authority.--The Secretary shall maintain and
expand existing secondary and postsecondary high school
equivalency program and college assistance migrant program
projects located at institutions of higher education or at
private nonprofit organizations working in cooperation with
institutions of higher education.
(b) Services Provided by High School Equivalency Program.--
The services authorized by this subpart for the high school
equivalency program include--
(1) recruitment services to reach persons--
(A)(i) who are 16 years of age and over; or
(ii) who are beyond the age of compulsory
school attendance in the State in which such
persons reside and are not enrolled in school;
(B)(i) who themselves, or whose immediate
family, have spent a minimum of 75 days during
the past 24 months in migrant and seasonal
farmwork; or
(ii) who are eligible to participate, or have
participated within the preceding 2 years, in
programs under part C of title I of the
Elementary and Secondary Education Act of 1965
or section 167 of the Workforce Investment Act
of 1998; and
(C) who lack a high school diploma or its
equivalent;
(2) educational services which provide instruction
designed to help students obtain a general education
diploma which meets the guidelines established by the
State in which the project is located for high school
equivalency;
(3) supportive services which include the following:
(A) personal, vocational, and academic
counseling;
(B) placement services designed to place
students in a university, college, or junior
college program (including preparation for
college entrance examinations), or in military
service or career positions; and
(C) health services;
(4) information concerning, and assistance in
obtaining, available student financial aid;
(5) stipends for high school equivalency program
participants;
(6) housing for those enrolled in residential
programs;
(7) exposure to cultural events, academic programs,
and other educational and cultural activities usually
not available to migrant youth;
(8) other essential supportive services (such as
transportation and child care), as needed to ensure the
success of eligible students; and
(9) other activities to improve persistence and
retention in postsecondary education.
(c) Services Provided by College Assistance Migrant
Program.--(1) Services authorized by this subpart for the
college assistance migrant program include--
(A) outreach and recruitment services to reach
persons who themselves or whose immediate family have
spent a minimum of 75 days during the past 24 months in
migrant and seasonal farmwork or who have participated
or are eligible to participate, in programs under part
C of title I of the Elementary and Secondary Education
Act of 1965 or section 167 of the Workforce Investment
Act of 1998, and who meet the minimum qualifications
for attendance at a college or university;
(B) supportive and instructional services to improve
placement, persistence, and retention in postsecondary
education, which include:
(i) personal, academic, career, and economic
education or personal finance counseling as an
ongoing part of the program;
(ii) tutoring and academic skill building
instruction and assistance;
(iii) assistance with special admissions;
(iv) health services; and
(v) other services as necessary to assist
students in completing program requirements;
(C) assistance in obtaining student financial aid
which includes, but is not limited to:
(i) stipends;
(ii) scholarships;
(iii) student travel;
(iv) career oriented work study;
(v) books and supplies;
(vi) tuition and fees;
(vii) room and board; and
(viii) other assistance necessary to assist
students in completing their first year of
college;
(D) housing support for students living in
institutional facilities and commuting students;
(E) exposure to cultural events, academic programs,
and other activities not usually available to migrant
youth;
(F) internships; and
(G) other essential supportive services (such as
transportation and child care) as necessary to ensure
the success of eligible students.
(2) A recipient of a grant to operate a college assistance
migrant program under this subpart shall provide followup
services for migrant students after such students have
completed their first year of college, and shall not use more
than 10 percent of such grant for such followup services. Such
followup services may include--
(A) monitoring and reporting the academic progress of
students who participated in the project during such
student's first year of college and during such
student's subsequent years in college;
(B) referring such students to on- or off-campus
providers of counseling services, academic assistance,
or financial aid, and coordinating such services,
assistance, and aid with other non-program services,
assistance, and aid, including services, assistance,
and aid provided by community-based organizations,
which may include mentoring and guidance; and
(C) for students attending two-year institutions of
higher education, encouraging the students to transfer
to four-year institutions of higher education, where
appropriate, and monitoring the rate of transfer of
such students.
(d) Management Plan Required.--Each project application shall
include a management plan which contains assurances that the
grant recipient will coordinate the project, to the extent
feasible, with other local, State, and Federal programs to
maximize the resources available for migrant students, and that
staff shall have a demonstrated knowledge and be sensitive to
the unique characteristics and needs of the migrant and
seasonal farmworker population, and provisions for:
(1) staff in-service training;
(2) training and technical assistance;
(3) staff travel;
(4) student travel;
(5) interagency coordination; and
(6) an evaluation plan.
(e) Five-year Grant Period; Consideration of Prior
Experience.--Except under extraordinary circumstances, the
Secretary shall award grants for a 5-year period. For the
purpose of making grants under this subpart, the Secretary
shall consider the prior experience of service delivery under
the particular project for which funds are sought by each
applicant. Such prior experience shall be awarded the same
level of consideration given this factor for applicants for
programs in accordance with section 402A(c)(2).
(f) Minimum Allocations.--The Secretary shall not allocate an
amount less than--
(1) $180,000 for each project under the high school
equivalency program, and
(2) $180,000 for each project under the college
assistance migrant program.
(g) Reservation and Allocation of Funds.--From the amounts
made available under subsection (i), the Secretary--
(1) may reserve not more than a total of \1/2\ of one
percent for outreach activities, technical assistance,
and professional development programs relating to the
programs under subsection (a);
(2) for any fiscal year for which the amount
appropriated to carry out this section is equal to or
greater than $40,000,000, shall, in awarding grants
from the remainder of such amounts--
(A) make available not less than 45 percent
of such remainder for the high school
equivalency programs and not less than 45
percent of such remainder for the college
assistance migrant programs;
(B) award the rest of such remainder for high
school equivalency programs or college
assistance migrant programs based on the
number, quality, and promise of the
applications; and
(C) consider the need to provide an equitable
geographic distribution of such grants; and
(3) for any fiscal year for which the amount
appropriated to carry out this section is less than
$40,000,000, shall, in awarding grants from the
remainder of such amounts make available the same
percentage of funds to the high school equivalency
program and to the college assistance migrant program
as was made available for each such program for the
fiscal year preceding the fiscal year for which the
grant was made.
(h) Data Collection.--The Secretary shall--
(1) annually collect data on persons receiving
services authorized under this subpart regarding such
persons' rates of secondary school graduation, entrance
into postsecondary education, and completion of
postsecondary education, as applicable;
(2) not less often than once every two years, prepare
and submit to the authorizing committees a report based
on the most recently available data under paragraph
(1); and
(3) make such report available to the public.
(i) Authorization of Appropriations.--For the purpose of
making grants and contracts under this section, there are
authorized to be appropriated [$75,000,000 for fiscal year 2009
and such sums as may be necessary for the each of the five
succeeding fiscal years.] $44,623,000 for each of fiscal years
2019 through 2024.
[Subpart 6--Robert C. Byrd Honors Scholarship Program
[SEC. 419A. STATEMENT OF PURPOSE.
[It is the purpose of this subpart to establish a Robert C.
Byrd Honors Scholarship Program to promote student excellence
and achievement and to recognize exceptionally able students
who show promise of continued excellence.
[SEC. 419C. SCHOLARSHIPS AUTHORIZED.
[(a) Program Authority.--The Secretary is authorized, in
accordance with the provisions of this subpart, to make grants
to States to enable the States to award scholarships to
individuals who have demonstrated outstanding academic
achievement and who show promise of continued academic
achievement.
[(b) Period of Award.--Scholarships under this section shall
be awarded for a period of not less than 1 or more than 4 years
during the first 4 years of study at any institution of higher
education eligible to participate in any programs assisted
under this title. The State educational agency administering
the program in a State shall have discretion to determine the
period of the award (within the limits specified in the
preceding sentence), except that--
[(1) if the amount appropriated for this subpart for
any fiscal year exceeds the amount appropriated for
this subpart for fiscal year 1993, the Secretary shall
identify to each State educational agency the number of
scholarships available to that State under section
419D(b) that are attributable to such excess; and
[(2) the State educational agency shall award not
less than that number of scholarships for a period of 4
years.
[(c) Use at any Institution Permitted.--A student awarded a
scholarship under this subpart may attend any institution of
higher education.
[(d) Byrd Scholars.--Individuals awarded scholarships under
this subpart shall be known as ``Byrd Scholars''.
[SEC. 419D. ALLOCATION AMONG STATES.
[(a) Allocation Formula.--From the sums appropriated pursuant
to the authority of section 419K for any fiscal year, the
Secretary shall allocate to each State that has an agreement
under section 419E an amount equal to $1,500 multiplied by the
number of scholarships determined by the Secretary to be
available to such State in accordance with subsection (b).
[(b) Number of Scholarships Available.--The number of
scholarships to be made available in a State for any fiscal
year shall bear the same ratio to the number of scholarships
made available to all States as the State's population ages 5
through 17 bears to the population ages 5 through 17 in all the
States, except that not less than 10 scholarships shall be made
available to any State.
[(c) Use of Census Data.--For the purpose of this section,
the population ages 5 through 17 in a State and in all the
States shall be determined by the most recently available data,
satisfactory to the Secretary, from the Bureau of the Census.
[(d) Consolidation by Insular Areas Prohibited.--
Notwithstanding section 501 of Public Law 95-134 (48 U.S.C.
1469a), funds allocated under this part to an Insular Area
described in that section shall be deemed to be direct payments
to classes of individuals, and the Insular Area may not
consolidate such funds with other funds received by the Insular
Area from any department or agency of the United States
Government.
[(e) FAS Eligibility.--
[(1) Fiscal years 2000 through 2004.--Notwithstanding
any other provision of this subpart, in the case of
students from the Freely Associated States who may be
selected to receive a scholarship under this subpart
for the first time for any of the fiscal years 2000
through 2004--
[(A) there shall be 10 scholarships in the
aggregate awarded to such students for each of
the fiscal years 2000 through 2004; and
[(B) the Pacific Regional Educational
Laboratory shall administer the program under
this subpart in the case of scholarships for
students in the Freely Associated States.
[(2) Termination of eligibility.--A student from the
Freely Associated States shall not be eligible to
receive a scholarship under this subpart after
September 30, 2004.
[SEC. 419E. AGREEMENTS.
[The Secretary shall enter into an agreement with each State
desiring to participate in the scholarship program authorized
by this subpart. Each such agreement shall include provisions
designed to assure that--
[(1) the State educational agency will administer the
scholarship program authorized by this subpart in the
State;
[(2) the State educational agency will comply with
the eligibility and selection provisions of this
subpart;
[(3) the State educational agency will conduct
outreach activities to publicize the availability of
scholarships under this subpart to all eligible
students in the State, with particular emphasis on
activities designed to assure that students from low-
income and moderate-income families have access to the
information on the opportunity for full participation
in the scholarship program authorized by this subpart;
and
[(4) the State educational agency will pay to each
individual in the State who is awarded a scholarship
under this subpart $1,500.
[SEC. 419F. ELIGIBILITY OF SCHOLARS.
[(a) High School Graduation or Equivalent and Admission to
Institution Required.--Each student awarded a scholarship under
this subpart shall be a graduate of a public or private
secondary school (or a home school, whether treated as a home
school or a private school under State law) or have the
equivalent of a certificate of graduation as recognized by the
State in which the student resides and must have been admitted
for enrollment at an institution of higher education.
[(b) Selection Based on Promise of Academic Achievement.--
Each student awarded a scholarship under this subpart must
demonstrate outstanding academic achievement and show promise
of continued academic achievement.
[SEC. 419G. SELECTION OF SCHOLARS.
[(a) Establishment of Criteria.--The State educational agency
is authorized to establish the criteria for the selection of
scholars under this subpart.
[(b) Adoption of Procedures.--The State educational agency
shall adopt selection procedures designed to ensure an
equitable geographic distribution of awards within the State
(and in the case of the Federated States of Micronesia, the
Republic of the Marshall Islands, the Virgin Islands, American
Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
or Palau (until such time as the Compact of Free Association is
ratified), not to exceed 10 individuals will be selected from
such entities).
[(c) Consultation Requirement.--In carrying out its
responsibilities under subsections (a) and (b), the State
educational agency shall consult with school administrators,
school boards, teachers, counselors, and parents.
[(d) Timing of Selection.--The selection process shall be
completed, and the awards made, prior to the end of each
secondary school academic year.
[SEC. 419H. STIPENDS AND SCHOLARSHIP CONDITIONS.
[(a) Amount of Award.--Each student awarded a scholarship
under this subpart shall receive a stipend of $1,500 for the
academic year of study for which the scholarship is awarded,
except that in no case shall the total amount of financial aid
awarded to such student exceed such student's total cost-of-
attendance.
[(b) Use of Award.--The State educational agency shall
establish procedures to assure that a scholar awarded a
scholarship under this subpart pursues a course of study at an
institution of higher education.
[SEC. 419J. CONSTRUCTION OF NEEDS PROVISIONS.
[Except as provided in section 471, nothing in this subpart,
or any other Act, shall be construed to permit the receipt of a
scholarship under this subpart to be counted for any needs test
in connection with the awarding of any grant or the making of
any loan under this Act or any other provision of Federal law
relating to educational assistance.
[SEC. 419K. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated for this subpart
such sums as may be necessary for fiscal year 2009 and each of
the five succeeding fiscal years.
Subpart 7--Child Care Access Means Parents in School
SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
(a) Purpose.--The purpose of this section is to support the
participation of low-income parents in postsecondary education
through the provision of campus-based child care services.
(b) Program Authorized.--
(1) Authority.--The Secretary may award grants to
institutions of higher education to assist the
institutions in providing campus-based child care
services to low-income students.
(2) Amount of grants.--
(A) In general.--The amount of a grant
awarded to an institution of higher education
under this section for a fiscal year shall not
exceed 1 percent of the total amount of all
Federal Pell Grant funds awarded to students
enrolled at the institution of higher education
for the preceding fiscal year.
(B) Minimum.--
(i) In general.--Except as provided
in clause (ii), a grant under this
section shall be awarded in an amount
that is not less than $10,000.
(ii) Increase trigger.--For any
fiscal year for which the amount
appropriated under the authority of
subsection (g) is equal to or greater
than $20,000,000, a grant under this
section shall be awarded in an amount
that is not less than $30,000.
(3) Duration; renewal; and payments.--
(A) Duration.--The Secretary shall award a
grant under this section for a period of 4
years.
(B) Payments.--Subject to subsection (e)(2),
the Secretary shall make annual grant payments
under this section.
(4) Eligible institutions.--An institution of higher
education shall be eligible to receive a grant under
this section for a fiscal year if the total amount of
all Federal Pell Grant funds awarded to students
enrolled at the institution of higher education for the
preceding fiscal year equals or exceeds $350,000,
except that for any fiscal year for which the amount
appropriated to carry out this section is equal to or
greater than $20,000,000, this sentence shall be
applied by substituting ``$250,000'' for ``$350,000''.
(5) Use of funds.--Grant funds under this section
shall be used by an institution of higher education to
support or establish a campus-based child care program
primarily serving the needs of low-income students
enrolled at the institution of higher education. Grant
funds under this section may be used to provide before
and after school services to the extent necessary to
enable low-income students enrolled at the institution
of higher education to pursue postsecondary education.
(6) [Construction] Rule of construction.--Nothing in
this section shall be construed to prohibit an
institution of higher education that receives grant
funds under this section from serving the child care
needs of the community served by the institution.
(7) Definition of low-income student.--For the
purpose of this section, the term ``low-income
student'' means a student--
(A) who is eligible to receive a Federal Pell
Grant for the award year for which the
determination is made; or
(B) who would otherwise be eligible to
receive a Federal Pell Grant for the award year
for which the determination is made, except
that the student fails to meet the requirements
of--
(i) section 401(c)(1) because the
student is enrolled in a graduate or
first professional course of study; or
(ii) section 484(a)(5) because the
student is in the United States for a
temporary purpose.
(8) Publicity.--The Secretary shall publicize the
availability of grants under this section in
appropriate periodicals, in addition to publication in
the Federal Register, and shall inform appropriate
educational organizations of such availability.
(c) Applications.--An institution of higher education
desiring a grant under this section shall submit an application
to the Secretary at such time, in such manner, and accompanied
by such information as the Secretary may require. Each
application shall--
(1) demonstrate that the institution is an eligible
institution described in subsection (b)(4);
(2) specify the amount of funds requested;
(3) demonstrate the need of low-income students at
the institution for campus-based child care services by
including in the application--
(A) information regarding student
demographics;
(B) an assessment of child care capacity on
or near campus;
(C) information regarding the existence of
waiting lists for existing child care;
(D) information regarding additional needs
created by concentrations of poverty or by
geographic isolation; and
(E) other relevant data;
(4) contain a description of the activities to be
[assisted] funded, including whether the grant funds
will support an existing child care program or a new
child care program;
(5) identify the [resources, including technical
expertise] resources, including non-Federal resources,
technical expertise, and financial support, the
institution will draw upon to support the child care
program and the participation of low-income students in
the program, such as accessing social services funding,
using student activity fees to help pay the costs of
child care, using resources obtained by meeting the
needs of parents who are not low-income students, and
accessing foundation, corporate or other institutional
support, and demonstrate that [the use of the] these
resources will not result in increases in student
tuition;
(6) contain an assurance that the institution will
meet the child care needs of low-income students
through the provision of services, or through a
contract for the provision of services;
(7) describe the extent to which the child care
program will coordinate with the institution's early
childhood education curriculum, to the extent the
curriculum is available, to meet the needs of the
students in the early childhood education program at
the institution, and the needs of the parents and
children participating in the child care program
assisted under this section;
(8) in the case of an institution seeking assistance
for a new child care program--
(A) provide a timeline, covering the period
from receipt of the grant through the provision
of the child care services, delineating the
specific steps the institution will take to
achieve the goal of providing low-income
students with child care services;
(B) specify any measures the institution will
take to assist low-income students with child
care during the period before the institution
provides child care services; and
(C) include a plan for identifying resources
needed for the child care services, including
space in which to provide child care services,
and technical assistance if necessary;
(9) contain an assurance that any child care facility
assisted under this section will meet the applicable
State or local government licensing, certification,
approval, provisional status, or registration
requirements[; and] prior to serving children and
families; and
(10) contain a plan for any child care facility
assisted under this section to become accredited within
3 years of the date the institution first receives
assistance under this section.
(d) Priority.--The Secretary shall give priority in awarding
grants under this section to institutions of higher education
that submit applications describing programs that--
(1) leverage significant [local] non-Federal, local,
or institutional resources, including in-kind
contributions, to support the activities assisted under
this section; [and]
(2) utilize a sliding fee scale for child care
services provided under this section in order to
support a high number of low-income parents pursuing
postsecondary education at the institution[.]; and
(3) coordinate with other community programs where
appropriate to improve the quality and limit cost of
the campus-based program.
[(e) Reporting Requirements; Continuing Eligibility.--
[(1) Reporting requirements.--
[(A) Reports.--Each institution of higher
education receiving a grant under this section
shall report to the Secretary annually.
[(B) Contents.--The report shall include--
[(i) data on the population served
under this section;
[(ii) information on campus and
community resources and funding used to
help low-income students access child
care services;
[(iii) information on progress made
toward accreditation of any child care
facility; and
[(iv) information on the impact of
the grant on the quality, availability,
and affordability of campus-based child
care services.
[(2) Continuing eligibility.--The Secretary shall
make continuation awards under this section to an
institution of higher education only if the Secretary
determines, on the basis of the reports submitted under
paragraph (1), that the institution is making a good
faith effort to ensure that low-income students at the
institution have access to affordable, quality child
care services.]
(e) Reporting Requirements; Continuing Eligibility.--
(1) Reporting requirements.--
(A) Reports.--Each institution of higher
education receiving a grant under this section
shall report to the Secretary annually. The
Secretary shall annually publish such reports
on a publicly accessible website of the
Department of Education.
(B) Contents.--Each report shall include--
(i) data on the population served
under this section, including the total
number of children and families served;
(ii) information on sources of campus
and community resources and the amount
of non-Federal funding used to help
low-income students access child care
services on campus;
(iii) documentation that the program
meets applicable licensing,
certification, approval, or
registration requirements; and
(iv) a description of how funding was
used to pursue the goals of this
section determined by the institution
under subsection (c).
(2) Continuing eligibility.--The Secretary shall make
continuation awards under this section to an
institution of higher education only if the Secretary
determines, on the basis of the reports submitted under
paragraph (1) and the application from the institution,
that the institution is--
(A) using funds only for authorized purposes;
(B) providing low-income students at the
institution with priority access to affordable,
quality child care services as provided under
this section; and
(C) documenting a continued need for Federal
funding under this section, while demonstrating
how non-federal sources will be leveraged to
support a continuation award.
(f) Construction.--No funds provided under this section shall
be used for construction, except for minor renovation or repair
to meet applicable State or local health or safety
requirements.
(g) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section [such sums as may be
necessary for fiscal year 2009 and each of the five succeeding
fiscal years] $15,134,000 for each of fiscal years 2019 through
2024.
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] section 102 (as in effect
on the day before the date of enactment of the PROSPER
Act), that the Secretary determines--
(A) provides high quality teacher preparation
and professional development services,
including extensive clinical experience as a
part of pre-service preparation;
(B) is financially responsible;
(C) provides pedagogical course work, or
assistance in the provision of such coursework,
including the monitoring 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 completed 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
certification 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).
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 agreement 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
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''.
(3) Termination.--
(A) Termination of program authority.--Except
as provided in paragraph (4), no new grants may
be made under this subpart after June 30, 2018.
(B) Limitation on funds.--
(i) In general.--No funds are
authorized to be appropriated, and no
funds may be obligated or expended
under this Act or any other Act, to
make a grant to a new recipient under
this subpart.
(ii) New recipient defined.--For
purposes of this subparagraph, the term
``new recipient'' means a teacher
candidate who has not received a grant
under this subpart for which the first
disbursement was on or before June 30,
2018.
(4) Student eligibility beginning with award year
2018.--With respect to a recipient of a grant under
this subpart for which the first disbursement was made
on or before June 30, 2018, such recipient may receive
additional grants under this subpart until the earlier
of--
(A) the date on which the recipient completes
the course of study for which the recipient
received the grant for which the first
disbursement was made on or before June 30,
2018; or
(B) the date on which the recipient receives
the total amount that the recipient may receive
under this subpart in accordance with
subsection (d).
(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
institutions in an accurate and timely manner, except
that this sentence shall not be construed to limit the
authority of the Secretary 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 institution 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 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 section 482 of this Act.
(2) No exceeding cost.--The amount of a grant awarded
under this subpart, in combination with Federal
assistance and other assistance the student may
receive, shall not exceed the cost of attendance (as
defined in section 472) at the eligible institution at
which that teacher candidate is in attendance.
(d) Period of Eligibility for Grants.--
(1) Undergraduate and post-baccalaureate students.--
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-baccalaureate 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.
(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 determined, under
standards prescribed by the
Secretary, 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 determined 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
acquisition, 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 subsection
(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);]
(B) teach--
(i) in a public or other nonprofit
private elementary school or secondary
school, which, for the purpose of this
paragraph and for that year--
(I) has been determined by
the Secretary (pursuant to
regulations of the Secretary
and after consultation with the
State educational agency of the
State in which the school is
located) to be a school in
which the number of children
meeting a measure of poverty
under section 1113(a)(5) of the
Elementary and Secondary
Education Act of 1965 (20
U.S.C. 6313(a)(5)), exceeds 30
percent of the total number of
children enrolled in such
school; and
(II) is in the school
district of a local educational
agency which is eligible in
such year for assistance
pursuant to part A of title I
of the Elementary and Secondary
Education Act of 1965 (20
U.S.C. 6311 et seq.); or
(ii) in one or more public, or
nonprofit private, elementary schools
or secondary schools or locations
operated by an educational service
agency that have been determined by the
Secretary (pursuant to regulations of
the Secretary and after consultation
with the State educational agency of
the State in which the educational
service agency operates) to be a school
or location at which the number of
children taught who meet a measure of
poverty under section 1113(a)(5) of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6313(a)(5)), exceeds
30 percent of the total number of
children taught at such school or
location;
(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
(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;
(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; and
(3) contains, or is accompanied by, a plain-language
disclosure form developed by the Secretary that clearly
describes the nature of the TEACH Grant award, the
service obligation, and the loan repayment requirements
that are the consequence of the failure to complete the
service obligation.
(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 (as in effect on the day before the date of
the enactment of the PROSPER Act), 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.
(d) Additional Administrative Provisions.--
(1) Change of high-need designation.--If a recipient
of an initial grant under this subpart has acquired an
academic degree, or expertise, in a field that was, at
the time of the recipient's application for that grant,
designated as high need in accordance with subsection
(b)(1)(C)(vii), but is no longer so designated, the
grant recipient may fulfill the service obligation
described in subsection (b)(1) by teaching in that
field.
(2) Extenuating circumstances.--The Secretary shall
establish, by regulation, categories of extenuating
circumstances under which a recipient of a grant under
this subpart who is unable to fulfill all or part of
the recipient's service obligation may be excused from
fulfilling that portion of the service obligation.
SEC. 420O. PROGRAM PERIOD AND FUNDING.
Beginning on July 1, [2008] 2008, and ending on June 30,
2018, there shall be available to the Secretary to carry out
this subpart, from funds not otherwise appropriated, such sums
as may be necessary to provide TEACH Grants in accordance with
this subpart to each eligible applicant. Except as provided in
section 420M(a)(4), no funds shall be available to the
Secretary to carry out this subpart after June 30, 2018.
* * * * * * *
Subpart 10--Scholarships for Veteran's Dependents
* * * * * * *
Part B--Federal Family Education Loan Program
* * * * * * *
SEC. 428C. FEDERAL CONSOLIDATION LOANS.
(a) Agreements With Eligible Lenders.--
(1) Agreement required for insurance coverage.--For
the purpose of providing loans to eligible borrowers
for consolidation of their obligations with respect to
eligible student loans, the Secretary or a guaranty
agency shall enter into agreements in accordance with
subsection (b) with the following eligible lenders:
(A) the Student Loan Marketing Association or
the Holding Company of the Student Loan
Marketing Association, including any subsidiary
of the Holding Company, created pursuant to
section 440;
(B) State agencies described in subparagraphs
(D) and (F) of section 435(d)(1); and
(C) other eligible lenders described in
subparagraphs (A), (B), (C), (E), and (J) of
such section.
(2) Insurance coverage of consolidation loans.--
Except as provided in section 429(e), no contract of
insurance under this part shall apply to a
consolidation loan unless such loan is made under an
agreement pursuant to this section and is covered by a
certificate issued in accordance with subsection
(b)(2). Loans covered by such a certificate that is
issued by a guaranty agency shall be considered to be
insured loans for the purposes of reimbursements under
section 428(c), but no payment shall be made with
respect to such loans under section 428(f) to any such
agency.
(3) Definition of eligible borrower.--(A) For the
purpose of this section, the term ``eligible borrower''
means a borrower who--
(i) is not subject to a judgment secured
through litigation with respect to a loan under
this title or to an order for wage garnishment
under section 488A; and
(ii) at the time of application for a
consolidation loan--
(I) is in repayment status as
determined under section 428(b)(7)(A);
(II) is in a grace period preceding
repay-ment; or
(III) is a defaulted borrower who has
made arrangements to repay the
obligation on the defaulted loans
satisfactory to the holders of the
defaulted loans.
(B)(i) An individual's status as an eligible borrower
under this section or under section 455(g) terminates
under both sections upon receipt of a consolidation
loan under this section or under section 455(g), except
that--
(I) an individual who receives eligible
student loans after the date of receipt of the
consolidation loan may receive a subsequent
consolidation loan;
(II) loans received prior to the date of the
consolidation loan may be added during the 180-
day period following the making of the
consolidation loan;
(III) loans received following the making of
the consolidation loan may be added during the
180-day period following the making of the
consolidation loan;
(IV) loans received prior to the date of the
first consolidation loan may be added to a
subsequent consolidation loan; and
(V) an individual may obtain a
subsequent consolidation loan under
section 455(g) only--
(aa) for the purposes of
obtaining income contingent
repayment or income-based
repayment, and only if the loan
has been submitted to the
guaranty agency for default
aversion or if the loan is
already in default;
(bb) for the purposes of
using the public service loan
forgiveness program under
section 455(m); or
(cc) for the purpose of using the no
accrual of interest for active duty
service members benefit offered under
section 455(o).
(4) Definition of eligible student loans.--For the
purpose of paragraph (1), the term ``eligible student
loans'' means loans--
(A) made, insured, or guaranteed under this
part, and first disbursed before July 1, 2010,
including loans on which the borrower has
defaulted (but has made arrangements to repay
the obligation on the defaulted loans
satisfactory to the Secretary or guaranty
agency, whichever insured the loans);
(B) made under part E of this title, as in
effect on the day before the date of enactment
of the PROSPER Act and pursuant to section
461(a) of such Act;
(C) made under part D of this title;
(D) made under subpart II of part A of title
VII of the Public Health Service Act; or
(E) made under part E of title VIII of the
Public Health Service Act.
(b) Contents of Agreements, Certificates of Insurance, and
Loan Notes.--
(1) Agreements with lenders.--Any lender described in
subparagraph (A), (B), or (C) of subsection (a)(1) who
wishes to make consolidation loans under this section
shall enter into an agreement with the Secretary or a
guaranty agency which provides--
(A) that, in the case of all lenders
described in subsection (a)(1), the lender will
make a consolidation loan to an eligible
borrower (on request of that borrower) only if
the borrower certifies that the borrower has no
other application pending for a loan under this
section;
(B) that each consolidation loan made by the
lender will bear interest, and be subject to
repayment, in accordance with subsection (c);
(C) that each consolidation loan will be
made, notwithstanding any other provision of
this part limiting the annual or aggregate
principal amount for all insured loans made to
a borrower, in an amount (i) which is not less
than the minimum amount required for
eligibility of the borrower under subsection
(a)(3), and (ii) which is equal to the sum of
the unpaid principal and accrued unpaid
interest and late charges of all eligible
student loans received by the eligible borrower
which are selected by the borrower for
consolidation;
(D) that the proceeds of each consolidation
loan will be paid by the lender to the holder
or holders of the loans so selected to
discharge the liability on such loans;
(E) that the lender shall offer an income-
sensitive repayment schedule, established by
the lender in accordance with the regulations
promulgated by the Secretary, to the borrower
of any consolidation loan made by the lender on
or after July 1, 1994, and before July 1, 2010;
(F) that the lender shall disclose to a
prospective borrower, in simple and
understandable terms, at the time the lender
provides an application for a consolidation
loan--
(i) whether consolidation would
result in a loss of loan benefits under
this part or part D, including loan
forgiveness, cancellation, and
deferment;
(ii) with respect to Federal Perkins
Loans under part E, as in effect on the
day before the date of enactment of the
PROSPER Act and pursuant to section
461(a) of such Act--
(I) that if a borrower
includes a Federal Perkins Loan
under part E, as so in effect,
in the consolidation loan, the
borrower will lose all
interest-free periods that
would have been available for
the Federal Perkins Loan, such
as--
(aa) the periods
during which no
interest accrues on
such loan while the
borrower is enrolled in
school at least half-
time;
(bb) the grace period
under section
464(c)(1)(A), as so in
effect; and
(cc) the periods
during which the
borrower's student loan
repayments are deferred
under section
464(c)(2);
(II) that if a borrower
includes a Federal Perkins Loan
in the consolidation loan, the
borrower will no longer be
eligible for cancellation of
part or all of the Federal
Perkins Loan under section
465(a), as so in effect; and
(III) the occupations listed
in section 465, as so in effect
that qualify for Federal
Perkins Loan cancellation under
section 465(a), as so in
effect;
(iii) the repayment plans that are
available to the borrower;
(iv) the options of the borrower to
prepay the consolidation loan, to pay
such loan on a shorter schedule, and to
change repayment plans;
(v) that borrower benefit programs
for a consolidation loan may vary among
different lenders;
(vi) the consequences of default on
the consolidation loan; and
(vii) that by applying for a
consolidation loan, the borrower is not
obligated to agree to take the
consolidation loan; and
(G) such other terms and conditions as the
Secretary or the guaranty agency may
specifically require of the lender to carry out
this section.
(2) Issuance of certificate of comprehensive
insurance coverage.--The Secretary shall issue a
certificate of comprehensive insurance coverage under
section 429(b) to a lender which has entered into an
agreement with the Secretary under paragraph (1) of
this subsection. The guaranty agency may issue a
certificate of comprehensive insurance coverage to a
lender with which it has an agreement under such
paragraph. The Secretary shall not issue a certificate
to a lender described in subparagraph (B) or (C) of
subsection (a)(1) unless the Secretary determines that
such lender has first applied to, and has been denied a
certificate of insurance by, the guaranty agency which
insures the preponderance of its loans (by value).
(3) Contents of certificate.--A certificate issued
under paragraph (2) shall, at a minimum, provide--
(A) that all consolidation loans made by such
lender in conformity with the requirements of
this section will be insured by the Secretary
or the guaranty agency (whichever is
applicable) against loss of principal and
interest;
(B) that a consolidation loan will not be
insured unless the lender has determined to its
satisfaction, in accordance with reasonable and
prudent business practices, for each loan being
consolidated--
(i) that the loan is a legal, valid,
and binding obligation of the borrower;
(ii) that each such loan was made and
serviced in compliance with applicable
laws and regulations; and
(iii) in the case of loans under this
part, that the insurance on such loan
is in full force and effect;
(C) the effective date and expiration date of
the certificate;
(D) the aggregate amount to which the
certificate applies;
(E) the reporting requirements of the
Secretary on the lender and an identification
of the office of the Department of Education or
of the guaranty agency which will process
claims and perform other related administrative
functions;
(F) the alternative repayment terms which
will be offered to borrowers by the lender;
(G) that, if the lender prior to the
expiration of the certificate no longer
proposes to make consolidation loans, the
lender will so notify the issuer of the
certificate in order that the certificate may
be terminated (without affecting the insurance
on any consolidation loan made prior to such
termination); and
(H) the terms upon which the issuer of the
certificate may limit, suspend, or terminate
the lender's authority to make consolidation
loans under the certificate (without affecting
the insurance on any consolidation loan made
prior to such limitation, suspension, or
termination).
(4) Terms and conditions of loans.--A consolidation
loan made pursuant to this section shall be insurable
by the Secretary or a guaranty agency pursuant to
paragraph (2) only if the loan is made to an eligible
borrower who has agreed to notify the holder of the
loan promptly concerning any change of address and the
loan is evidenced by a note or other written agreement
which--
(A) is made without security and without
endorsement, except that if the borrower is a
minor and such note or other written agreement
executed by him or her would not, under
applicable law, create a binding obligation,
endorsement may be required;
(B) provides for the payment of interest and
the repayment of principal in accordance with
subsection (c) of this section;
(C)(i) provides that periodic installments of
principal need not be paid, but interest shall
accrue and be paid in accordance with clause
(ii), during any period for which the borrower
would be eligible for a deferral under section
428(b)(1)(M), and that any such period shall
not be included in determining the repayment
schedule pursuant to subsection (c)(2) of this
section; and
(ii) provides that interest shall accrue and
be paid during any such period--
(I) by the Secretary, in the case of
a consolidation loan for which the
application is received by an eligible
lender before the date of enactment of
the Emergency Student Loan
Consolidation Act of 1997 that
consolidated only Federal Stafford
Loans for which the student borrower
received an interest subsidy under
section 428;
(II) by the Secretary, in the case of
a consolidation loan for which the
application is received by an eligible
lender on or after the date of
enactment of the Emergency Student Loan
Consolidation Act of 1997 except that
the Secretary shall pay such interest
only on that portion of the loan that
repays Federal Stafford Loans for which
the student borrower received an
interest subsidy under section 428 or
Federal Direct Stafford Loans for which
the borrower received an interest
subsidy under section 455; or
(III) by the borrower, or
capitalized, in the case of a
consolidation loan other than a loan
described in subclause (I) or (II);
(D) entitles the borrower to accelerate
without penalty repayment of the whole or any
part of the loan; and
(E)(i) contains a notice of the system of
disclosure concerning such loan to consumer
reporting agencies under section 430A, and (ii)
provides that the lender on request of the
borrower will provide information on the
repayment status of the note to such consumer
reporting agencies.
(5) Direct loans.--If, before July 1, 2010, a
borrower is unable to obtain a consolidation loan from
a lender with an agreement under subsection (a)(1), or
is unable to obtain a consolidation loan with income-
sensitive repayment terms or income-based repayment
terms acceptable to the borrower from such a lender, or
chooses to obtain a consolidation loan for the purposes
of using the public service loan forgiveness program
offered under section 455(m), the Secretary shall offer
any such borrower who applies for it, a Federal Direct
Consolidation loan. In addition, in the event that a
borrower chooses to obtain a consolidation loan for the
purposes of using the no accrual of interest for active
duty service members program offered under section
455(o), the Secretary shall offer a Federal Direct
Consolidation loan to any such borrower who applies for
participation in such program. A direct consolidation
loan offered under this paragraph shall, as requested
by the borrower, be repaid either pursuant to income
contingent repayment under part D of this title,
pursuant to income-based repayment under section 493C,
or pursuant to any other repayment provision under this
section, 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). The Secretary shall not offer such loans
if, in the Secretary's judgment, the Department of
Education does not have the necessary origination and
servicing arrangements in place for such loans.
(6) Nondiscrimination in Loan Consolidation.--An
eligible lender that makes consolidation loans under
this section shall not discriminate against any
borrower seeking such a loan--
(A) based on the number or type of eligible
student loans the borrower seeks to
consolidate, except that a lender is not
required to consolidate loans described in
subparagraph (D) or (E) of subsection (a)(4) or
subsection (d)(1)(C)(ii);
(B) based on the type or category of
institution of higher education that the
borrower attended;
(C) based on the interest rate to be charged
to the borrower with respect to the
consolidation loan; or
(D) with respect to the types of repayment
schedules offered to such borrower.
(c) Payment of Principal and Interest.--
(1) Interest rate.--(A) Notwithstanding subparagraphs
(B) and (C), with respect to any loan made under this
section for which the application is received by an
eligible lender--
(i) on or after October 1, 1998, and before
July 1, 2006, the applicable interest rate
shall be determined under section 427A(k)(4);
or
(ii) on or after July 1, 2006, and that is
disbursed before July 1, 2010, the applicable
interest rate shall be determined under section
427A(l)(3).
(B) A consolidation loan made before July 1, 1994,
shall bear interest at an annual rate on the unpaid
principal balance of the loan that is equal to the
greater of--
(i) the weighted average of the interest
rates on the loans consolidated, rounded to the
nearest whole percent; or
(ii) 9 percent.
(C) A consolidation loan made on or after July 1,
1994, and disbursed before July 1, 2010, shall bear
interest at an annual rate on the unpaid principal
balance of the loan that is equal to the weighted
average of the interest rates on the loans
consolidated, rounded upward to the nearest whole
percent.
(D) A consolidation loan for which the application is
received by an eligible lender on or after the date of
enactment of the Emergency Student Loan Consolidation
Act of 1997 and before October 1, 1998, shall bear
interest at an annual rate on the unpaid principal
balance of the loan that is equal to the rate specified
in section 427A(f), except that the eligible lender may
continue to calculate interest on such a loan at the
rate previously in effect and defer, until not later
than April 1, 1998, the recalculation of the interest
on such a loan at the rate required by this
subparagraph if the recalculation is applied
retroactively to the date on which the loan is made.
(2) Repayment schedules.--(A) Notwithstanding any
other provision of this part, to the extent authorized
by its certificate of insurance under subsection (b)(2)
and approved by the issuer of such certificate, the
lender of a consolidation loan shall establish
repayment terms as will promote the objectives of this
section, which shall include the establishment of
graduated, income-sensitive, or income-based repayment
schedules, established by the lender in accordance with
the regulations of the Secretary. Except as required by
such income-sensitive or income-based repayment
schedules, or by the terms of repayment pursuant to
income contingent repayment offered by the Secretary
under subsection (b)(5), such repayment terms shall
require that if the sum of the consolidation loan and
the amount outstanding on other student loans to the
individual--
(i) is less than $7,500, then such
consolidation loan shall be repaid in not more
than 10 years;
(ii) is equal to or greater than $7,500 but
less than $10,000, then such consolidation loan
shall be repaid in not more than 12 years;
(iii) is equal to or greater than $10,000 but
less than $20,000, then such consolidation loan
shall be repaid in not more than 15 years;
(iv) is equal to or greater than $20,000 but
less than $40,000, then such consolidation loan
shall be repaid in not more than 20 years;
(v) is equal to or greater than $40,000 but
less than $60,000, then such consolidation loan
shall be repaid in not more than 25 years; or
(vi) is equal to or greater than $60,000,
then such consolidation loan shall be repaid in
not more than 30 years.
(B) The amount outstanding on other student loans
which may be counted for the purpose of subparagraph
(A) may not exceed the amount of the consolidation
loan.
(3) Additional repayment requirements.--
Notwithstanding paragraph (2)--
(A) except in the case of an income-based
repayment schedule under section 493C, a
repayment schedule established with respect to
a consolidation loan shall require that the
minimum installment payment be an amount equal
to not less than the accrued unpaid interest;
(B) except as required by the terms of
repayment pursuant to income contingent
repayment offered by the Secretary under
subsection (b)(5), the lender of a
consolidation loan may, with respect to
repayment on the loan, when the amount of a
monthly or other similar payment on the loan is
not a multiple of $5, round the payment to the
next highest whole dollar amount that is a
multiple of $5; and
(C) an income-based repayment schedule under
section 493C shall not be available to a
consolidation loan borrower who used the
proceeds of the loan to discharge the liability
on a loan under section 428B, or a Federal
Direct PLUS loan, made on behalf of a dependent
student.
(4) Commencement of repayment.--Repayment of a
consolidation loan shall commence within 60 days after
all holders have, pursuant to subsection (b)(1)(D),
discharged the liability of the borrower on the loans
selected for consolidation.
(5) Insurance premiums prohibited.--No insurance
premium shall be charged to the borrower on any
consolidation loan, and no insurance premium shall be
payable by the lender to the Secretary with respect to
any such loan, but a fee may be payable by the lender
to the guaranty agency to cover the costs of increased
or extended liability with respect to such loan.
(d) Special Program Authorized.--
(1) General rule and definition of eligible student
loan.--
(A) In general.--Subject to the provisions of
this subsection, the Secretary or a guaranty
agency shall enter into agreements with
eligible lenders described in subparagraphs
(A), (B), and (C) of subsection (a)(1) for the
consolidation of eligible student loans.
(B) Applicability rule.--Unless otherwise
provided in this subsection, the agreements
entered into under subparagraph (A) and the
loans made under such agreements for the
consolidation of eligible student loans under
this subsection shall have the same terms,
conditions, and benefits as all other
agreements and loans made under this section.
(C) Definition.--For the purpose of this
subsection, the term ``eligible student loans''
means loans--
(i) of the type described in
subparagraphs (A), (B), and (C) of
subsection (a)(4); and
(ii) made under subpart I of part A
of title VII of the Public Health
Service Act.
(2) Interest rate rule.--
(A) In general.--The portion of each
consolidated loan that is attributable to an
eligible student loan described in paragraph
(1)(C)(ii) shall bear interest at a rate not to
exceed the rate determined under subparagraph
(B).
(B) Determination of the maximum interest
rate.--For the 12-month period beginning after
July 1, 1992, and for each 12-month period
thereafter, beginning on July 1 and ending on
June 30, the interest rate applicable under
subparagraph (A) shall be equal to the average
of the bond equivalent rates of the 91-day
Treasury bills auctioned for the quarter prior
to July 1, for each 12-month period for which
the determination is made, plus 3 percent.
(C) Publication of maximum interest rate.--
The Secretary shall determine the applicable
rate of interest under subparagraph (B) after
consultation with the Secretary of the Treasury
and shall publish such rate in the Federal
Register as soon as practicable after the date
of such determination.
(3) Special rules.--
(A) No special allowance rule.--No special
allowance under section 438 shall be paid with
respect to the portion of any consolidated loan
under this subsection that is attributable to
any loan described in paragraph (1)(C)(ii).
(B) No interest subsidy rule.--No interest
subsidy under section 428(a) shall be paid on
behalf of any eligible borrower for any portion
of a consolidated loan under this subsection
that is attributable to any loan described in
paragraph (1)(C)(ii).
(C) Additional reserve rule.--Notwithstanding
any other provision of this Act, additional
reserves shall not be required for any guaranty
agency with respect to a loan made under this
subsection.
(D) Insurance rule.--Any insurance premium
paid by the borrower under subpart I of part A
of title VII of the Public Health Service Act
with respect to a loan made under that subpart
and consolidated under this subsection shall be
retained by the student loan insurance account
established under section 710 of the Public
Health Service Act.
(4) Regulations.--The Secretary is authorized to
promulgate such regulations as may be necessary to
facilitate carrying out the provisions of this
subsection.
(e) Termination of Authority.--The authority to make loans
under this section expires at the close of June 30, 2010. No
loan may be made under this section for which the disbursement
is on or after July 1, 2010. Nothing in this section shall be
construed to authorize the Secretary to promulgate rules or
regulations governing the terms or conditions of the agreements
and certificates under subsection (b). Loans made under this
section which are insured by the Secretary shall be considered
to be new loans made to students for the purpose of section
424(a).
(f) Interest Payment Rebate Fee.--
(1) In general.--For any month beginning on or after
October 1, 1993, each holder of a consolidation loan
under this section for which the first disbursement was
made on or after October 1, 1993, shall pay to the
Secretary, on a monthly basis and in such manner as the
Secretary shall prescribe, a rebate fee calculated on
an annual basis equal to 1.05 percent of the principal
plus accrued unpaid interest on such loan.
(2) Special rule.--For consolidation loans based on
applications received during the period from October 1,
1998 through January 31, 1999, inclusive, the rebate
described in paragraph (1) shall be equal to 0.62
percent of the principal plus accrued unpaid interest
on such loan.
(3) Deposit.--The Secretary shall deposit all fees
collected pursuant to this subsection into the
insurance fund established in section 431.
* * * * * * *
SEC. 428F. DEFAULT REDUCTION PROGRAM.
(a) Other Repayment Incentives.--
(1) Sale or assignment of loan.--
(A) In general.--Each guaranty agency, upon
securing 9 payments made within 20 days of the
due date during 10 consecutive months of
amounts owed on a loan for which the Secretary
has made a payment under paragraph (1) of
section 428(c), shall--
(i) if practicable, sell the loan to
an eligible lender; or
(ii) beginning July 1, 2014, assign
the loan to the Secretary if the
guaranty agency has been unable to sell
the loan under clause (i).
(B) Monthly payments.--Neither the guaranty
agency nor the Secretary shall demand from a
borrower as monthly payment amounts described
in subparagraph (A) more than is reasonable and
affordable based on the borrower's total
financial circumstances.
(C) Consumer reporting agencies.--Upon the
sale or assignment of the loan, the Secretary,
guaranty agency or other holder of the loan
shall request any consumer reporting agency to
which the Secretary, guaranty agency or holder,
as applicable, reported the default of the
loan, to remove the record of the default from
the borrower's credit history.
(D) Duties upon sale.--With respect to a loan
sold under subparagraph (A)(i)--
(i) the guaranty agency--
(I) shall, in the case of a
sale made on or after July 1,
2014, repay the Secretary 100
percent of the amount of the
principal balance outstanding
at the time of such sale,
multiplied by the reinsurance
percentage in effect when
payment under the guaranty
agreement was made with respect
to the loan; and
(II) may, in the case of a
sale made on or after July 1,
2014, in order to defray
collection costs--
(aa) charge to the
borrower an amount not
to exceed 16 percent of
the outstanding
principal and interest
at the time of the loan
sale; and
(bb) retain such
amount from the
proceeds of the loan
sale; and
(ii) the Secretary shall reinstate
the Secretary's obligation to--
(I) reimburse the guaranty
agency for the amount that the
agency may, in the future,
expend to discharge the
guaranty agency's insurance
obligation; and
(II) pay to the holder of
such loan a special allowance
pursuant to section 438.
(E) Duties upon assignment.--With respect to
a loan assigned under subparagraph (A)(ii)--
(i) the guaranty agency shall add to
the principal and interest outstanding
at the time of the assignment of such
loan an amount equal to the amount
described in subparagraph
(D)(i)(II)(aa); and
(ii) the Secretary shall pay the
guaranty agency, for deposit in the
agency's Operating Fund established
pursuant to section 422B, an amount
equal to the amount added to the
principal and interest outstanding at
the time of the assignment in
accordance with clause (i).
(F) Eligible lender limitation.--A loan shall
not be sold to an eligible lender under
subparagraph (A)(i) if such lender has been
found by the guaranty agency or the Secretary
to have substantially failed to exercise the
due diligence required of lenders under this
part.
(G) Default due to error.--A loan that does
not meet the requirements of subparagraph (A)
may also be eligible for sale or assignment
under this paragraph upon a determination that
the loan was in default due to clerical or data
processing error and would not, in the absence
of such error, be in a delinquent status.
(2) Use of proceeds of sales.--Amounts received by
the Secretary pursuant to the sale of such loans by a
guaranty agency under paragraph (1)(A)(i) shall be
deducted from the calculations of the amount of
reimbursement for which the agency is eligible under
paragraph (1)(D)(ii)(I) for the fiscal year in which
the amount was received, notwithstanding the fact that
the default occurred in a prior fiscal year.
(3) Borrower eligibility.--Any borrower whose loan is
sold or assigned under paragraph (1)(A) shall not be
precluded by section 484 from receiving additional
loans or grants under this title (for which he or she
is otherwise eligible) on the basis of defaulting on
the loan prior to such loan sale or assignment.
(4) Applicability of general loan conditions.--A loan
that is sold or assigned under paragraph (1) shall, so
long as the borrower continues to make scheduled
repayments thereon, be subject to the same terms and
conditions and qualify for the same benefits and
privileges as other loans made under this part.
(5) Limitation.--A borrower may obtain the benefits
available under this subsection with respect to
rehabilitating a loan (whether by loan sale or
assignment) only [one time] two times per loan.
(b) Satisfactory Repayment Arrangements To Renew
Eligibility.--Each guaranty agency shall establish a program
which allows a borrower with a defaulted loan or loans to renew
eligibility for all title IV student financial assistance
(regardless of whether the defaulted loan has been sold to an
eligible lender or assigned to the Secretary) upon the
borrower's payment of 6 consecutive monthly payments. The
guaranty agency shall not demand from a borrower as a monthly
payment amount under this subsection more than is reasonable
and affordable based upon the borrower's total financial
circumstances. A borrower may only obtain the benefit of this
subsection with respect to renewed eligibility once.
(c) Financial and Economic Literacy.--Each program described
in subsection (b) shall include making available financial and
economic education materials for a borrower who has
rehabilitated a loan.
* * * * * * *
SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.
(a) Statement of Purpose.--It is the purpose of this section
to encourage individuals to enter and continue in the teaching
profession.
(b) Program Authorized.--The Secretary shall carry out a
program, through the holder of the loan, of assuming the
obligation to repay a qualified loan amount for a loan made
under section 428 or 428H, in accordance with subsection (c),
for any new borrower on or after October 1, 1998, who--
(1) has been employed as a full-time teacher for 5
consecutive complete school years--
(A) in a school or location [that qualifies
under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who
teach in such schools or locations] described
in section 420N(b)(1)(B); and
(B) if employed as an elementary school or
secondary school teacher, is highly qualified
as defined in section 9101 of the Elementary
Secondary Education Act of 1965, or meets the
requirements of subsection (g)(3); and
(2) is not in default on a loan for which the
borrower seeks forgiveness.
(c) Qualified Loans Amount.--
(1) In general.--The Secretary shall repay not more
than $5,000 in the aggregate of the loan obligation on
a loan made under section 428 or 428H that is
outstanding after the completion of the fifth complete
school year of teaching described in subsection (b)(1).
No borrower may receive a reduction of loan obligations
under both this section and section 460.
(2) Treatment of consolidation loans.--A loan amount
for a loan made under section 428C may be a qualified
loan amount for the purposes of this subsection only to
the extent that such loan amount was used to repay a
Federal Direct Stafford Loan, a Federal Direct
Unsubsidized Stafford Loan, or a loan made under
section 428 or 428H for a borrower who meets the
requirements of subsection (b), as determined in
accordance with regulations prescribed by the
Secretary.
(3) Additional amounts for teachers in mathematics,
science, or special education.--Notwithstanding the
amount specified in paragraph (1), the aggregate amount
that the Secretary shall repay under this section shall
be not more than $17,500 in the case of--
(A) a secondary school teacher--
(i) who meets the requirements of
subsection (b); and
(ii) whose qualifying employment for
purposes of such subsection is teaching
mathematics or science on a full-time
basis; and
(B) an elementary school or secondary school
teacher--
(i) who meets the requirements of
subsection (b);
(ii) whose qualifying employment for
purposes of such subsection is as a
special education teacher whose primary
responsibility is to provide special
education to children with disabilities
(as those terms are defined in section
602 of the Individuals with
Disabilities Education Act); and
(iii) who, as certified by the chief
administrative officer of the public or
non-profit private elementary school or
secondary school in which the borrower
is employed, or, in the case of a
teacher who is employed by an
educational service agency, as
certified by the chief administrative
officer of such agency, is teaching
children with disabilities that
correspond with the borrower's special
education training and has demonstrated
knowledge and teaching skills in the
content areas of the elementary school
or secondary school curriculum that the
borrower is teaching.
(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of
this section.
(e) Construction.--Nothing in this section shall be construed
to authorize any refunding of any repayment of a loan.
(f) List.--If the list of schools in which a teacher may
perform service pursuant to subsection (b) is not available
before May 1 of any year, the Secretary may use the list for
the year preceding the year for which the determination is made
to make such service determination.
(g) Additional Eligibility Provisions.--
(1) Continued eligibility.--Any teacher who performs
service in a school that--
(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be
eligible for loan forgiveness pursuant to subsection
(b).
(2) Prevention of double benefits.--No borrower may,
for the same service, receive a benefit under both this
section and--
(A) section 428K;
(B) section 455(m); or
(C) subtitle D of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12601
et seq.).
(3) Private school teachers.--An individual who is
employed as a teacher in a private school and is exempt
from State certification requirements (unless otherwise
applicable under State law), may, in lieu of the
requirement of subsection (b)(1)(B), have such
employment treated as qualifying employment under this
section if such individual is permitted to and does
satisfy rigorous subject knowledge and skills tests by
taking competency tests in the applicable grade levels
and subject areas. For such purposes, the competency
tests taken by such a private school teacher shall be
recognized by 5 or more States for the purpose of
fulfilling the highly qualified teacher requirements
under section 9101 of the Elementary and Secondary
Education Act of 1965, and the score achieved by such
teacher on each test shall equal or exceed the average
passing score of those 5 States.
(h) Definition.--For purposes of this section, the term
``year'', where applied to service as a teacher, means an
academic year as defined by the Secretary.
SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
(a) Program Authorized.--
(1) Loan forgiveness authorized.--The Secretary shall
forgive, in accordance with this section, the qualified
loan amount described in subsection (c) of the student
loan obligation of a borrower who--
(A) is employed full-time in an area of
national need, as described in subsection (b);
and
(B) is not in default on a loan for which the
borrower seeks forgiveness.
(2) Method of loan forgiveness.--To provide loan
forgiveness under paragraph (1), the Secretary is
authorized to carry out a program--
(A) through the holder of the loan, to assume
the obligation to repay a qualified loan amount
for a loan made, insured, or guaranteed under
this part (other than an excepted PLUS loan or
an excepted consolidation loan (as such terms
are defined in section 493C(a))); and
(B) to cancel a qualified loan amount for a
loan made under part D of this title (other
than an excepted PLUS loan or an excepted
consolidation loan).
(3) Regulations.--The Secretary is authorized to
issue such regulations as may be necessary to carry out
this section.
(b) Areas of National Need.--For purposes of this section, an
individual is employed in an area of national need if the
individual meets the requirements of one of the following:
(1) Early childhood educators.--The individual is
employed full-time as an early childhood educator.
(2) Nurses.--The individual is employed full-time--
(A) as a nurse in a clinical setting; or
(B) as a member of the nursing faculty at an
accredited school of nursing (as those terms
are defined in section 801 of the Public Health
Service Act (42 U.S.C. 296)).
(3) Foreign language specialists.--The individual--
(A) has obtained a baccalaureate or advanced
degree in a critical foreign language; and
(B) is employed full-time--
(i) in an elementary school or
secondary school as a teacher of a
critical foreign language;
(ii) in an agency of the United
States Government in a position that
regularly requires the use of such
critical foreign language; or
(iii) in an institution of higher
education as a faculty member or
instructor teaching a critical foreign
language.
(4) Librarians.--The individual is employed full-time
as a librarian in--
(A) a public library that serves a geographic
area within which the public schools have a
combined average of 30 percent or more of the
schools' total student enrollments composed of
children meeting a measure of poverty under
section 1113(a)(5) of the Elementary and
Secondary Education Act of 1965; or
(B) a school [that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins
loan recipients who teach in such a school]
described in section 420N(b)(1)(B).
(5) Highly qualified teachers serving students who
are limited english proficient, low-income communities,
and underrepresented populations.--The individual--
(A) is highly qualified, as such term is
defined in section 9101 of the Elementary and
Secondary Education Act of 1965; and
(B) is employed full-time--
(i) as a teacher educating students
who are limited English proficient;
(ii) as a teacher in a school [that
qualifies under section 465(a)(2)(A)
for loan cancellation for Perkins loan
recipients who teach in such a school]
described in section 420N(b)(1)(B);
(iii) as a teacher and is an
individual from an underrepresented
population in the teaching profession,
as determined by the Secretary; or
(iv) as a teacher in an educational
service agency, as such term is defined
in section 8101 of the Elementary and
Secondary Education Act of 1965.
(6) Child welfare workers.--The individual--
(A) has obtained a degree in social work or a
related field with a focus on serving children
and families; and
(B) is employed full-time in public or
private child welfare services.
(7) Speech-language pathologists and audiologists.--
The individual--
(A) is employed full-time as a speech-
language pathologist or audiologist in an
eligible preschool program or a school [that
qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who
teach in such a school] described in section
420N(b)(1)(B); and
(B) has, at a minimum, a graduate degree in
speech-language pathology, audiology, or
communication sciences and disorders.
(8) School counselors.--The individual--
(A) is employed full-time as a school
counselor who has documented competence in
counseling children and adolescents in a school
setting and who--
(i) is licensed by the State or
certified by an independent
professional regulatory authority;
(ii) in the absence of such State
licensure or certification, possesses
national certification in school
counseling or a specialty of counseling
granted by an independent professional
organization; or
(iii) holds a minimum of a master's
degree in school counseling from a
program accredited by the Council for
Accreditation of Counseling and Related
Educational Programs or the equivalent;
and
(B) is so employed in a school [that
qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who
teach in such a school] described in section
420N(b)(1)(B).
(9) Public sector employees.--The individual is
employed full-time in--
(A) public safety (including as a first
responder, firefighter, police officer, or
other law enforcement or public safety
officer);
(B) emergency management (including as an
emergency medical technician);
(C) public health (including full-time
professionals engaged in health care
practitioner occupations and health care
support occupations, as such terms are defined
by the Bureau of Labor Statistics); or
(D) public interest legal services (including
prosecution, public defense, or legal advocacy
in low-income communities at a nonprofit
organization).
(10) Nutrition professionals.--The individual--
(A) is a licensed, certified, or registered
dietician who has completed a degree in a
relevant field; and
(B) is employed full-time as a dietician with
an agency of the special supplemental nutrition
program for women, infants, and children under
section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786).
(11) Medical specialists.--The individual--
(A) has received a degree from a medical
school at an institution of higher education;
and
(B) has been accepted to, or currently
participates in, a full-time graduate medical
education training program or fellowship (or
both) to provide health care services (as
recognized by the Accreditation Council for
Graduate Medical Education) that--
(i) requires more than five years of
total graduate medical training; and
(ii) has fewer United States medical
school graduate applicants than the
total number of positions available in
such program or fellowship.
(12) Mental health professionals.--The individual--
(A) has not less than a master's degree in
social work, psychology, or psychiatry; and
(B) is employed full-time providing mental
health services to children, adolescents, or
veterans.
(13) Dentists.--The individual--
(A)(i) has received a degree from an
accredited dental school (as accredited by the
Commission on Dental Accreditation);
(ii) has completed residency training in
pediatric dentistry, general dentistry, or
dental public health; and
(iii) is employed full-time as a dentist; or
(B) is employed full-time as a member of the
faculty at a program or school accredited by
the Commission on Dental Accreditation.
(14) STEM employees.--The individual is employed
full-time in applied sciences, technology, engineering,
or mathematics.
(15) Physical therapists.--The individual--
(A) is a physical therapist; and
(B) is employed full-time providing physical
therapy services to children, adolescents, or
veterans.
(16) Superintendents, principals, and other
administrators.--The individual is employed full-time
as a school superintendent, principal, or other
administrator in a local educational agency, including
in an educational service agency, in which 30 percent
or more of the schools are schools [that qualify under
section 465(a)(2)(A) for loan cancellation for Perkins
loan recipients who teach in such a school] described
in section 420N(b)(1)(B).
(17) Occupational therapists.--The individual is an
occupational therapist and is employed full-time
providing occupational therapy services to children,
adolescents, or veterans.
(18) Allied health professionals.--The individual is
employed full-time as an allied health professional--
(A) in a Federal, State, local, or tribal
public health agency; or
(B) in a setting where patients might require
health care services, including acute care
facilities, ambulatory care facilities,
personal residences and other settings located
in health professional shortage areas,
medically underserved areas, or medically
underserved populations, as recognized by the
Secretary of Health and Human Services.
(c) Qualified Loan Amount.--
(1) In general.--Subject to paragraph (2), for each
school, academic, or calendar year of full-time
employment in an area of national need described in
subsection (b) that a borrower completes on or after
the date of enactment of the Higher Education
Opportunity Act, the Secretary shall forgive not more
than $2,000 of the student loan obligation of the
borrower that is outstanding after the completion of
each such school, academic, or calendar year of
employment, respectively.
(2) Maximum amount.--The Secretary shall not forgive
more than $10,000 in the aggregate for any borrower
under this section, and no borrower shall receive loan
forgiveness under this section for more than five years
of service.
(d) Priority.--The Secretary shall grant loan forgiveness
under this section on a first-come, first-served basis, and
subject to the availability of appropriations.
(e) Rule of Construction.--Nothing in this section shall be
construed to authorize the refunding of any repayment of a
loan.
(f) Ineligibility for Double Benefits.--No borrower may, for
the same service, receive a reduction of loan obligations under
both this section and section 428J, 428L, 455(m), or 460.
(g) Definitions.--In this section:
(1) Allied health professional.--The term ``allied
health professional'' means an allied health
professional as defined in section 799B(5) of the
Public Heath Service Act (42 U.S.C. 295p(5)) who--
(A) has graduated and received an allied
health professions degree or certificate from
an institution of higher education; and
(B) is employed with a Federal, State, local
or tribal public health agency, or in a setting
where patients might require health care
services, including acute care facilities,
ambulatory care facilities, personal residences
and other settings located in health
professional shortage areas, medically
underserved areas, or medically underserved
populations, as recognized by the Secretary of
Health and Human Services.
(2) Audiologist.--The term ``audiologist'' means an
individual who--
(A) has received, at a minimum, a graduate
degree in audiology from an institution of
higher education accredited by an agency or
association recognized by the Secretary
pursuant to section 496(a); and
(B)(i) provides audiology services under
subsection (ll)(2) of section 1861 of the
Social Security Act (42 U.S.C. 1395x(ll)(2));
or
(ii) meets or exceeds the qualifications for
a qualified audiologist under subsection
(ll)(4) of such section (42 U.S.C.
1395x(ll)(4)).
(3) Early childhood educator.--The term ``early
childhood educator'' means an individual who--
(A) works directly with children in an
eligible preschool program or eligible early
childhood education program in a low-income
community;
(B) is involved directly in the care,
development, and education of infants,
toddlers, or young children age five and under;
and
(C) has completed a baccalaureate or advanced
degree in early childhood development or early
childhood education, or in a field related to
early childhood education.
(4) Eligible preschool program.--The term ``eligible
preschool program'' means a program that--
(A) provides for the care, development, and
education of infants, toddlers, or young
children age five and under;
(B) meets any applicable State or local
government licensing, certification, approval,
and registration requirements, and
(C) is operated by--
(i) a public or private school that
is supported, sponsored, supervised, or
administered by a local educational
agency;
(ii) a Head Start agency serving as a
grantee designated under the Head Start
Act (42 U.S.C. 9831 et seq.);
(iii) a nonprofit or community based
organization; or
(iv) a child care program, including
a home.
(5) Eligible early childhood education program.--The
term ``eligible early childhood education program''
means--
(A) a family child care program, center-based
child care program, State prekindergarten
program, school program, or other out-of-home
early childhood development care program,
that--
(i) is licensed or regulated by the
State; and
(ii) serves two or more unrelated
children who are not old enough to
attend kindergarten;
(B) a Head Start Program carried out under
the Head Start Act (42 U.S.C. 9831 et seq.); or
(C) an Early Head Start Program carried out
under section 645A of the Head Start Act (42
U.S.C. 9840a).
(6) Low-income community.--The term ``low-income
community'' means a school attendance area (as defined
in section 1113(a)(2)(A) of the Elementary and
Secondary Education Act of 1965)--
(A) in which 70 percent of households earn
less than 85 percent of the State median
household income; or
(B) that includes a school [that qualifies
under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who
teach in such a school] described in section
420N(b)(1)(B).
(7) Nurse.--The term ``nurse'' means a nurse who
meets all of the following:
(A) The nurse graduated from--
(i) an accredited school of nursing
(as those terms are defined in section
801 of the Public Health Service Act
(42 U.S.C. 296));
(ii) a nursing center; or
(iii) an academic health center that
provides nurse training.
(B) The nurse holds a valid and unrestricted
license to practice nursing in the State in
which the nurse practices in a clinical
setting.
(C) The nurse holds one or more of the
following:
(i) A graduate degree in nursing, or
an equivalent degree.
(ii) A nursing degree from a
collegiate school of nursing (as
defined in section 801 of the Public
Health Service Act (42 U.S.C. 296)).
(iii) A nursing degree from an
associate degree school of nursing (as
defined in such section).
(iv) A nursing degree from a diploma
school of nursing (as defined in such
section).
(8) Occupational therapist.--The term ``occupational
therapist'' means an individual who--
(A) has received, at a minimum, a
baccalaureate degree in occupational therapy
from an institution of higher education
accredited by an agency or association
recognized by the Secretary pursuant to section
496(a); and
(B)(i) provides occupational therapy services
under section 1861(g) of the Social Security
Act (42 U.S.C. 1395x(g)); or
(ii) meets or exceeds the qualifications for
a qualified occupational therapist, as
determined by State law.
(9) Physical therapist.--The term ``physical
therapist'' means an individual who--
(A) has received, at a minimum, a graduate
degree in physical therapy from an institution
of higher education accredited by an agency or
association recognized by the Secretary
pursuant to section 496(a); and
(B)(i) provides physical therapy services
under section 1861(p) of the Social Security
Act (42 U.S.C. 1395x(p)); or
(ii) meets or exceeds the qualifications for
a qualified physical therapist, as determined
by State law.
(10) Speech-language pathologist.--The term ``speech-
language pathologist'' means a speech-language
pathologist who--
(A) has received, at a minimum, a graduate
degree in speech-language pathology or
communication sciences and disorders from an
institution of higher education accredited by
an agency or association recognized by the
Secretary pursuant to section 496(a); and
(B) provides speech-language pathology
services under section 1861(ll)(1) of the
Social Security Act (42 U.S.C. 1395x(ll)(1)),
or meets or exceeds the qualifications for a
qualified speech-language pathologist under
subsection (ll)(4) of such section (42 U.S.C.
1395x(ll)(4)).
(h) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section such sums as may be
necessary for fiscal year 2009 and each of the five succeeding
fiscal years to provide loan forgiveness in accordance with
this section.
SEC. 428L. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.
(a) Purpose.--The purpose of this section is to encourage
qualified individuals to enter and continue employment as civil
legal assistance attorneys.
(b) Definitions.--In this section:
(1) Civil legal assistance attorney.--The term
``civil legal assistance attorney'' means an attorney
who--
(A) is a full-time employee of--
(i) a nonprofit organization that
provides legal assistance with respect
to civil matters to low-income
individuals without a fee; or
(ii) a protection and advocacy system
or client assistance program that
provides legal assistance with respect
to civil matters and receives funding
under--
(I) subtitle C of title I of
the Developmental Disabilities
Assistance and Bill of Rights
Act of 2000 (42 U.S.C. 15041 et
seq.);
(II) section 112 or 509 of
the Rehabilitation Act of 1973
(29 U.S.C. 732, 794e);
(III) part A of title I of
the Protection and Advocacy for
Individuals with Mental Illness
Act (42 U.S.C. 10801 et seq.);
(IV) section 5 of the
Assistive Technology Act of
1998 (29 U.S.C. 3004);
(V) section 1150 of the
Social Security Act (42 U.S.C.
1320b-21);
(VI) section 1253 of the
Public Health Service Act (42
U.S.C. 300d-53); or
(VII) section 291 of the Help
America Vote Act of 2002 (42
U.S.C. 15461);
(B) as such employee, provides civil legal
assistance as described in subparagraph (A) on
a full-time basis; and
(C) is continually licensed to practice law.
(2) Student loan.--
(A) In general.--Except as provided in
subparagraph (B), the term ``student loan''
means--
(i) subject to clause (ii), a loan
made, insured, or guaranteed under this
part, part D, or part E, as in effect
on the day before the date of enactment
of the PROSPER Act and pursuant to
section 461(a) of such Act; and
(ii) a loan made under section 428C
or 455(g), to the extent that such loan
was used to repay--
(I) a Federal Direct Stafford
Loan, a Federal Direct
Unsubsidized Stafford Loan, or
a Federal Direct PLUS Loan;
(II) a loan made under
section 428, 428B, or 428H; or
(III) a loan made under part
E, as in effect on the day
before the date of enactment of
the PROSPER Act and pursuant to
section 461(a) of such Act.
(B) Exclusion of parent plus loans.--The term
``student loan'' does not include any of the
following loans:
(i) A loan made to the parents of a
dependent student under section 428B.
(ii) A Federal Direct PLUS Loan made
to the parents of a dependent student.
(iii) A loan made under section 428C
or 455(g), to the extent that such loan
was used to repay--
(I) a loan made to the
parents of a dependent student
under section 428B; or
(II) a Federal Direct PLUS
Loan made to the parents of a
dependent student.
(c) Program Authorized.--From amounts appropriated under
subsection (i) for a fiscal year, the Secretary shall carry out
a program of assuming the obligation to repay a student loan,
by direct payments on behalf of a borrower to the holder of
such loan, in accordance with subsection (d), for any borrower
who--
(1) is employed as a civil legal assistance attorney;
and
(2) is not in default on a loan for which the
borrower seeks repayment.
(d) Terms of Agreement.--
(1) In general.--To be eligible to receive repayment
benefits under subsection (c), a borrower shall enter
into a written agreement with the Secretary that
specifies that--
(A) the borrower will remain employed as a
civil legal assistance attorney for a required
period of service of not less than three years,
unless involuntarily separated from that
employment;
(B) if the borrower is involuntarily
separated from employment on account of
misconduct, or voluntarily separates from
employment, before the end of the period
specified in the agreement, the borrower will
repay the Secretary the amount of any benefits
received by such employee under this agreement;
(C) if the borrower is required to repay an
amount to the Secretary under subparagraph (B)
and fails to repay such amount, a sum equal to
that amount shall be recoverable by the Federal
Government from the employee by such methods as
are provided by law for the recovery of amounts
owed to the Federal Government;
(D) the Secretary may waive, in whole or in
part, a right of recovery under this subsection
if it is shown that recovery would be contrary
to the public interest; and
(E) the Secretary shall make student loan
payments under this section for the period of
the agreement, subject to the availability of
appropriations.
(2) Repayments.--
(A) In general.--Any amount repaid by, or
recovered from, an individual under this
subsection shall be credited to the
appropriation account from which the amount
involved was originally paid.
(B) Merger.--Any amount credited under
subparagraph (A) shall be merged with other
sums in such account and shall be available for
the same purposes and period, and subject to
the same limitations, if any, as the sums with
which the amount was merged.
(3) Limitations.--
(A) Student loan payment amount.--Student
loan repayments made by the Secretary under
this section shall be made subject to such
terms, limitations, or conditions as may be
mutually agreed upon by the borrower and the
Secretary in an agreement under paragraph (1),
except that the amount paid by the Secretary
under this section shall not exceed--
(i) $6,000 for any borrower in any
calendar year; or
(ii) an aggregate total of $40,000 in
the case of any borrower.
(B) Beginning of payments.--Nothing in this
section shall authorize the Secretary to pay
any amount to reimburse a borrower for any
repayments made by such borrower prior to the
date on which the Secretary entered into an
agreement with the borrower under this
subsection.
(e) Additional Agreements.--
(1) In general.--On completion of the required period
of service under an agreement under subsection (d), the
borrower and the Secretary may, subject to paragraph
(2), enter into an additional agreement in accordance
with subsection (d).
(2) Term.--An agreement entered into under paragraph
(1) may require the borrower to remain employed as a
civil legal assistance attorney for less than three
years.
(f) Award Basis; Priority.--
(1) Award basis.--Subject to paragraph (2), the
Secretary shall provide repayment benefits under this
section on a first-come, first-served basis, and
subject to the availability of appropriations.
(2) Priority.--The Secretary shall give priority in
providing repayment benefits under this section in any
fiscal year to a borrower who--
(A) has practiced law for five years or less
and, for not less than 90 percent of the time
in such practice, has served as a civil legal
assistance attorney;
(B) received repayment benefits under this
section during the preceding fiscal year; and
(C) has completed less than three years of
the first required period of service specified
for the borrower in an agreement entered into
under subsection (d).
(g) Ineligibility for Double Benefits.--No borrower may, for
the same service, receive a reduction of loan obligations under
both this section and section 428K or 455(m).
(h) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out this section.
(i) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $10,000,000 for
fiscal year 2009 and such sums as may be necessary for each of
the five succeeding fiscal years.
* * * * * * *
SEC. 430. DEFAULT OF STUDENT UNDER FEDERAL LOAN INSURANCE PROGRAM.
(a) Notice to Secretary and Payment of Loss.--Upon default by
the student borrower on any loan covered by Federal loan
insurance pursuant to this part, and prior to the commencement
of suit or other enforcement proceedings upon security for that
loan, the insurance beneficiary shall promptly notify the
Secretary, and the Secretary shall if requested (at that time
or after further collection efforts) by the beneficiary, or may
on the Secretary's own motion, if the insurance is still in
effect, pay to the beneficiary the amount of the loss sustained
by the insured upon that loan as soon as that amount has been
determined. The ``amount of the loss'' on any loan shall, for
the purposes of this subsection and subsection (b), be deemed
to be an amount equal to the unpaid balance of the principal
amount and accrued interest, including interest accruing from
the date of submission of a valid default claim (as determined
by the Secretary) to the date on which payment is authorized by
the Secretary, reduced to the extent required by section
425(b). Such beneficiary shall be required to meet the
standards of due diligence in the collection of the loan and
shall be required to submit proof that the institution was
contacted and other reasonable attempts were made to locate the
borrower (when the location of the borrower is unknown) and
proof that contact was made with the borrower (when the
location is known). The Secretary shall make the determination
required to carry out the provisions of this section not later
than 90 days after the notification by the insurance
beneficiary and shall make payment in full on the amount of the
beneficiary's loss pending completion of the due diligence
investigation.
(b) Effect of Payment of Loss.--Upon payment of the amount of
the loss pursuant to subsection (a), the United States shall be
subrogated for all of the rights of the holder of the
obligation upon the insured loan and shall be entitled to an
assignment of the note or other evidence of the insured loan by
the insurance beneficiary. If the net recovery made by the
Secretary on a loan after deduction of the cost of that
recovery (including reasonable administrative costs and
collection costs, to the extent set forth in regulations issued
by the Secretary) exceeds the amount of the loss, the excess
shall be paid over to the insured. The Secretary may, in
attempting to make recovery on such loans, contract with
private business concerns, State student loan insurance
agencies, or State guaranty agencies, for payment for services
rendered by such concerns or agencies in assisting the
Secretary in making such recovery. Any contract under this
subsection entered into by the Secretary shall provide that
attempts to make recovery on such loans shall be fair and
reasonable, and do not involve harassment, intimidation, false
or misleading representations, or unnecessary communications
concerning the existence of any such loan to persons other than
the student borrower.
(c) Forbearance Not Precluded.--Nothing in this section or in
this part shall be construed to preclude any forbearance for
the benefit of the student borrower which may be agreed upon by
the parties to the insured loan and approved by the Secretary,
or to preclude forbearance by the Secretary in the enforcement
of the insured obligation after payment on that insurance. Any
forbearance which is approved by the Secretary under this
subsection with respect to the repayment of a loan, including a
forbearance during default, shall not be considered as
indicating that a holder of a federally insured loan has failed
to exercise reasonable care and due diligence in the collection
of the loan.
(d) Care and Diligence Required of Holders.--Nothing in this
section or in this part shall be construed to excuse the holder
of a federally insured loan from exercising reasonable care and
diligence in the making and collection of loans under the
provisions of this part. If the Secretary, after a reasonable
notice and opportunity for hearing to an eligible lender, finds
that it has substantially failed to exercise such care and
diligence or to make the reports and statements required under
section 428(a)(4) and section 429(a)(3), or to pay the required
Federal loan insurance premiums, the Secretary shall disqualify
that lender for further Federal insurance on loans granted
pursuant to this part until the Secretary is satisfied that its
failure has ceased and finds that there is reasonable assurance
that the lender will in the future exercise necessary care and
diligence or comply with such requirements, as the case may be.
(e) Default Rate of Lenders, Holders, and Guaranty
Agencies.--
(1) In general.--The Secretary shall annually publish
a list indicating the cohort default rate (determined
in accordance with section 435(m)) for each originating
lender, subsequent holder, and guaranty agency
participating in the program assisted under this part
and an average cohort default rate for all institutions
of higher education within each State.
(2) Regulations.--The Secretary shall prescribe
regulations designed to prevent an institution from
evading the application to that institution of a cohort
default rate through the use of such measures as
branching, consolidation, change of ownership or
control, or any similar device.
(3) Rate establishment and correction.--The Secretary
shall establish a cohort default rate for lenders,
holders, and guaranty agencies (determined consistent
with section 435(m)), except that the rate for lenders,
holders, and guaranty agencies shall not reflect any
loans issued in accordance with section 428(j).The
Secretary shall allow institutions, lenders, holders,
and guaranty agencies the opportunity to correct such
cohort default rate information.
(4) Sunset.--The Secretary shall not be subject to
the requirements of this subsection after the
transition period described in section 481B(e)(3).
* * * * * * *
SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
(a) Required Disclosure Before Disbursement.--Each eligible
lender, at or prior to the time such lender disburses a loan
that is insured or guaranteed under this part (other than a
loan made under section 428C), shall provide thorough and
accurate loan information on such loan to the borrower in
simple and understandable terms. [Any disclosure required by
this subsection may be made by an eligible lender by written or
electronic means, including as part of the application material
provided to the borrower, as part of the promissory note
evidencing the loan, or on a separate written form provided to
the borrower.] Any disclosure required by this subsection shall
be made on the Plain Language Disclosure Form developed by the
Secretary under section 455(p). Each lender shall provide to
each borrower a telephone number, and may provide an electronic
address, through which additional loan information can be
obtained. The disclosure shall include--
(1) a statement prominently and clearly displayed and
in bold print that the borrower is receiving a loan
that must be repaid;
(2) the name of the eligible lender, and the address
to which communications and payments should be sent;
(3) the principal amount of the loan;
(4) the amount of any charges, such as [the
origination fee and] finance charges, the origination
fee, and Federal default fee, and whether those fees
will be--
(A) collected by the lender at or prior to
the disbursal of the loan;
(B) deducted from the proceeds of the loan;
(C) paid separately by the borrower; or
(D) paid by the lender;
(5) the stated interest rate on the loan;
(6) the annual percentage rate of the loan, as
calculated using the standard 10-year repayment term,
and how interest accrues and is capitalized during
periods when the interest is not paid by the borrower;
[(6)] (7) for loans made under section 428H or to a
student borrower under section 428B, an explanation--
(A) that the borrower has the option to pay
the interest that accrues on the loan while the
borrower is a student at an institution of
higher education; and
(B) if the borrower does not pay such
interest while attending an institution, when
and how often interest on the loan will be
capitalized;
[(7)] (8) for loans made to a parent borrower on
behalf of a student under section 428B, an
explanation--
(A) that the parent has the option to defer
payment on the loan while the student is
enrolled on at least a half-time basis in an
institution of higher education;
(B) if the parent does not pay the interest
on the loan while the student is enrolled in an
institution, when and how often interest on the
loan will be capitalized; and
(C) that the parent may be eligible for a
deferment on the loan if the parent is enrolled
on at least a half-time basis in an institution
of higher education;
[(8)] (9) the yearly and cumulative maximum amounts
that may be borrowed;
[(9)] (10) a statement of the total cumulative
balance, including the loan being disbursed, owed by
the borrower to that lender, and an estimate of the
projected monthly payment, given such cumulative
balance;
[(10)] (11) an explanation of when repayment of the
loan will be required and when the borrower will be
obligated to pay interest that accrues on the loan;
[(11)] (12) a description of the types of repayment
plans that are available for the loan;
[(12)] (13) a statement as to the minimum and maximum
repayment terms which the lender may impose, and the
minimum annual payment required by law;
[(13)] (14) an explanation of any special options the
borrower may have for loan consolidation or other
refinancing of the loan;
[(14)] (15) a statement that the borrower has the
right to prepay all or part of the loan, at any time,
without penalty;
[(15)] (16) a statement summarizing circumstances in
which repayment of the loan or interest that accrues on
the loan may be deferred;
[(16)] (17) a statement summarizing the circumstances
in which a borrower may obtain forbearance on the loan;
[(17)] (18) a description of the options available
for forgiveness of the loan, and the requirements to
obtain loan forgiveness;
[(18)] (19) a definition of default and the
consequences to the borrower if the borrower defaults,
including a statement that the default will be reported
to a consumer reporting agency; and
[(19)] (20) an explanation of any cost the borrower
may incur during repayment or in the collection of the
loan, including fees that the borrower may be charged,
such as late payment fees and collection costs.
(b) Required Disclosure Before Repayment.--Each eligible
lender shall, at or prior to the start of the repayment period
on a loan made, insured, or guaranteed under section 428, 428B,
or 428H, disclose to the borrower by written or electronic
means the information required under this subsection in simple
and understandable terms. Each eligible lender shall provide to
each borrower a telephone number, and may provide an electronic
address, through which additional loan information can be
obtained. The disclosure required by this subsection shall be
made not less than 30 days nor more than 150 days before the
first payment on the loan is due from the borrower. The
disclosure shall include--
(1) the name of the eligible lender or loan servicer,
and the address to which communications and payments
should be sent;
(2) the scheduled date upon which the repayment
period is to begin or the deferment period under
section 428B(d)(1) is to end, as applicable;
(3) the estimated balance owed by the borrower on the
loan or loans covered by the disclosure (including, if
applicable, the estimated amount of interest to be
capitalized) as of the scheduled date on which the
repayment period is to begin or the deferment period
under 428B(d)(1) is to end, as applicable;
(4) the stated interest rate on the loan or loans, or
the combined interest rate of loans with different
stated interest rates;
(5) information on loan repayment benefits offered
for the loan or loans, including--
(A) whether the lender offers any benefits
that are contingent on the repayment behavior
of the borrower, such as--
(i) a reduction in interest rate if
the borrower repays the loan by
automatic payroll or checking account
deduction;
(ii) a reduction in interest rate if
the borrower makes a specified number
of on-time payments; and
(iii) other loan repayment benefits
for which the borrower could be
eligible that would reduce the amount
of repayment or the length of the
repayment period;
(B) if the lender provides a loan repayment
benefit--
(i) any limitations on such benefit;
(ii) explicit information on the
reasons a borrower may lose eligibility
for such benefit;
(iii) for a loan repayment benefit
that reduces the borrower's interest
rate--
(I) examples of the impact
the interest rate reduction
would have on the length of the
borrower's repayment period and
the amount of repayment; and
(II) upon the request of the
borrower, the effect the
reduction in interest rate
would have with respect to the
borrower's payoff amount and
time for repayment; and
(iv) whether and how the borrower can
regain eligibility for a benefit if a
borrower loses a benefit;
(6) a description of all the repayment plans that are
available to the borrower and a statement that the
borrower may change from one plan to another during the
period of repayment;
(7) the repayment schedule for all loans covered by
the disclosure, including--
(A) the date the first installment is due;
and
(B) the number, amount, and frequency of
required payments, which shall be based on a
standard repayment plan or, in the case of a
borrower who has selected another repayment
plan, on the repayment plan selected by the
borrower;
(8) an explanation of any special options the
borrower may have for loan consolidation or other
refinancing of the loan and of the availability and
terms of such other options;
(9) except as provided in subsection (d)--
(A) the projected total of interest charges
which the borrower will pay on the loan or
loans, assuming that the borrower makes
payments exactly in accordance with the
repayment schedule; and
(B) if the borrower has already paid interest
on the loan or loans, the amount of interest
paid;
(10) the nature of any fees which may accrue or be
charged to the borrower during the repayment period;
(11) a statement that the borrower has the right to
prepay all or part of the loan or loans covered by the
disclosure at any time without penalty;
(12) a description of the options by which the
borrower may avoid or be removed from default,
including any relevant fees associated with such
options; and
(13) additional resources, including nonprofit
organizations, advocates, and counselors (including the
Student Loan Ombudsman of the Department) of which the
lender is aware, where borrowers may receive advice and
assistance on loan repayment.
(c) Separate Notification.--Each eligible lender shall, at
the time such lender notifies a borrower of approval of a loan
which is insured or guaranteed under this part, provide the
borrower with a separate notification which summarizes, in
simple and understandable terms, the rights and
responsibilities of the borrower with respect to the loan,
including a statement of the consequences of defaulting on the
loan and a statement that each borrower who defaults will be
reported to a consumer reporting agency. The requirement of
this subsection shall be in addition to the information
required by subsection (a) of this section.
(d) Special Disclosure Rules on PLUS Loans, and Unsubsidized
Loans.--Loans made under sections 428B and 428H shall not be
subject to the disclosure of projected monthly payment amounts
required under subsection (b)(7) if the lender, in lieu of such
disclosure, provides the borrower with sample projections of
monthly repayment amounts, assuming different levels of
borrowing and interest accruals resulting from capitalization
of interest while the borrower, or the student on whose behalf
the loan is made, is in school, in simple and understandable
terms. Such sample projections shall disclose the cost to the
borrower of--
(1) capitalizing the interest; and
(2) paying the interest as the interest accrues.
(e) Required Disclosures During Repayment.--
(1) Pertinent information about a loan provided on a
periodic basis.--Each eligible lender shall provide the
borrower of a loan made, insured, or guaranteed under
this part with a bill or statement (as applicable) that
corresponds to each payment installment time period in
which a payment is due and that includes, in simple and
understandable terms--
(A) the original principal amount of the
borrower's loan;
(B) the borrower's current balance, as of the
time of the bill or statement, as applicable;
(C) the interest rate on such loan;
(D) the total amount the borrower has paid in
interest on the loan;
(E) the aggregate amount the borrower has
paid for the loan, including the amount the
borrower has paid in interest, the amount the
borrower has paid in fees, and the amount the
borrower has paid against the balance;
(F) a description of each fee the borrower
has been charged for the most recently
preceding installment time period;
(G) the date by which the borrower needs to
make a payment in order to avoid additional
fees and the amount of such payment and the
amount of such fees;
(H) the lender's or loan servicer's address
and toll-free phone number for payment and
billing error purposes; and
(I) a reminder that the borrower has the
option to change repayment plans, a list of the
names of the repayment plans available to the
borrower, a link to the appropriate page of the
Department's website to obtain a more detailed
description of the repayment plans, and
directions for the borrower to request a change
in repayment plan.
(2) Information provided to a borrower having
difficulty making payments.--Each eligible lender shall
provide to a borrower who has notified the lender that
the borrower is having difficulty making payments on a
loan made, insured, or guaranteed under this part with
the following information in simple and understandable
terms:
(A) A description of the repayment plans
available to the borrower, including how the
borrower should request a change in repayment
plan.
(B) A description of the requirements for
obtaining forbearance on a loan, including
expected costs associated with forbearance.
(C) A description of the options available to
the borrower to avoid defaulting on the loan,
and any relevant fees or costs associated with
such options.
(3) Required disclosures during delinquency.--Each
eligible lender shall provide to a borrower who is 60
days delinquent in making payments on a loan made,
insured, or guaranteed under this part with a notice,
in simple and understandable terms, of the following:
(A) The date on which the loan will default
if no payment is made.
(B) The minimum payment the borrower must
make to avoid default.
(C) A description of the options available to
the borrower to avoid default, and any relevant
fees or costs associated with such options,
including a description of deferment and
forbearance and the requirements to obtain
each.
(D) Discharge options to which the borrower
may be entitled.
(E) Additional resources, including nonprofit
organizations, advocates, and counselors
(including the Student Loan Ombudsman of the
Department), of which the lender is aware,
where the borrower can receive advice and
assistance on loan repayment.
(f) Cost of Disclosure and Consequences of Nondisclosure.--
(1) No cost to borrowers.--The information required
under this section shall be available without cost to
the borrower.
(2) Consequences of nondisclosure.--The failure of an
eligible lender to provide information as required by
this section shall not--
(A) relieve a borrower of the obligation to
repay a loan in accordance with the loan's
terms; or
(B) provide a basis for a claim for civil
damages.
(3) Rule of construction.--Nothing in this section
shall be construed as subjecting the lender to the
Truth in Lending Act with regard to loans made under
this part.
(4) Actions by the secretary.--The Secretary may
limit, suspend, or terminate the continued
participation of an eligible lender in making loans
under this part for failure by that lender to comply
with this section.
* * * * * * *
SEC. 435. DEFINITIONS FOR STUDENT LOAN INSURANCE PROGRAM.
As used in this part:
(a) Eligible Institution.--
(1) In general.--Except as provided in paragraph (2),
the term ``eligible institution'' means an institution
of higher education, as defined in [section 102]
sections 101 and 102, except that, for the purposes of
sections 427(a)(2)(C)(i) and 428(b)(1)(M)(i), an
eligible institution includes any institution that is
within this definition without regard to whether such
institution is participating in any program under this
title and includes any institution ineligible for
participation in any program under this part pursuant
to paragraph (2) of this subsection.
(2) Ineligibility based on high default rates.--(A)
An institution whose cohort default rate is equal to or
greater than the threshold percentage specified in
subparagraph (B) for each of the three most recent
fiscal years for which data are available shall not be
eligible to participate in a program under this part
for the fiscal year for which the determination is made
and for the two succeeding fiscal years, unless, within
30 days of receiving notification from the Secretary of
the loss of eligibility under this paragraph, the
institution appeals the loss of its eligibility to the
Secretary. The Secretary shall issue a decision on any
such appeal within 45 days after its submission. Such
decision may permit the institution to continue to
participate in a program under this part if--
(i) the institution demonstrates to the
satisfaction of the Secretary that the
Secretary's calculation of its cohort default
rate is not accurate, and that recalculation
would reduce its cohort default rate for any of
the three fiscal years below the threshold
percentage specified in subparagraph (B);
(ii) there are exceptional mitigating
circumstances within the meaning of paragraph
(5); or
(iii) there are, in the judgment of the
Secretary, other exceptional mitigating
circumstances that would make the application
of this paragraph inequitable.
If an institution continues to participate in a program
under this part, and the institution's appeal of the
loss of eligibility is unsuccessful, the institution
shall be required to pay to the Secretary an amount
equal to the amount of interest, special allowance,
reinsurance, and any related payments made by the
Secretary (or which the Secretary is obligated to make)
with respect to loans made under this part to students
attending, or planning to attend, that institution
during the pendency of such appeal. During such appeal,
the Secretary may permit the institution to continue to
participate in a program under this part.
(B) For purposes of determinations under subparagraph
(A), the threshold percentage is--
(i) 35 percent for fiscal year 1991 and 1992;
(ii) 30 percent for fiscal year 1993;
(iii) 25 percent for fiscal year 1994 through
fiscal year 2011; and
(iv) 30 percent for fiscal year 2012 and any
succeeding fiscal year.
(C) Until July 1, 1999, this paragraph shall not
apply to any institution that is--
(i) a part B institution within the meaning
of section 322(2) of this Act;
(ii) a tribally controlled college or
university, as defined in section 2(a)(4) of
the Tribally Controlled Colleges and
Universities Assistance Act of 1978; or
(iii) a Navajo Community College under the
Navajo Community College Act.
(D) Notwithstanding the first sentence of subparagraph (A),
the Secretary shall restore the eligibility to participate in a
program under subpart 1 of part A, part B, or part D of an
institution that did not appeal its loss of eligibility within
30 days of receiving notification if the Secretary determines,
on a case-by-case basis, that the institution's failure to
appeal was substantially justified under the circumstances, and
that--
(i) the institution made a timely request that the
appropriate guaranty agency correct errors in the draft
data used to calculate the institution's cohort default
rate;
(ii) the guaranty agency did not correct the
erroneous data in a timely fashion; and
(iii) the institution would have been eligible if the
erroneous data had been corrected by the guaranty
agency.
(3) Appeals for regulatory relief.--An institution
whose cohort default rate, calculated in accordance
with subsection (m), is equal to or greater than the
threshold percentage specified in paragraph (2)(B)(iv)
for any two consecutive fiscal years may, not later
than 30 days after the date the institution receives
notification from the Secretary, file an appeal
demonstrating exceptional mitigating circumstances, as
defined in paragraph (5). The Secretary shall issue a
decision on any such appeal not later than 45 days
after the date of submission of the appeal. If the
Secretary determines that the institution demonstrates
exceptional mitigating circumstances, the Secretary may
not subject the institution to provisional
certification based solely on the institution's cohort
default rate.
(4) Appeals based upon allegations of improper loan
servicing.--An institution that--
(A) is subject to loss of eligibility for the
Federal Family Education Loan Program pursuant
to paragraph (2)(A) of this subsection;
(B) is subject to loss of eligibility for the
Federal Supplemental Loans for Students
pursuant to section 428A(a)(2); or
(C) is an institution whose cohort default
rate equals or exceeds 20 percent for the most
recent year for which data are available;
may include in its appeal of such loss or rate a
defense based on improper loan servicing (in addition
to other defenses). In any such appeal, the Secretary
shall take whatever steps are necessary to ensure that
such institution has access for a reasonable period of
time, not to exceed 30 days, to a representative sample
(as determined by the Secretary) of the relevant loan
servicing and collection records used by a guaranty
agency in determining whether to pay a claim on a
defaulted loan or by the Department in determining an
institution's default rate in the loan program under
part D of this title. The Secretary shall reduce the
institution's cohort default rate to reflect the
percentage of defaulted loans in the representative
sample that are required to be excluded pursuant to
subsection (m)(1)(B).
(5) Definition of mitigating circumstances.--(A) For
purposes of this subsection, an institution of higher
education shall be treated as having exceptional
mitigating circumstances that make application of
paragraph (2) inequitable, and that provide for
regulatory relief under paragraph (3), if such
institution, in the opinion of an independent auditor,
meets the following criteria:
(i) For a 12-month period that ended during
the 6 months immediately preceding the fiscal
year for which the cohort of borrowers used to
calculate the institution's cohort default rate
is determined, at least two-thirds of the
students enrolled on at least a half-time basis
at the institution--
(I) are eligible to receive a Federal
Pell Grant award that is at least equal
to one-half the Federal Pell Grant
amount, determined under section
401(b)(2)(A), for which a student would
be eligible based on the student's
enrollment status; or
(II) have an adjusted gross income
that when added with the adjusted gross
income of the student's parents (unless
the student is an independent student),
of less than the poverty level, as
determined by the Department of Health
and Human Services.
(ii) In the case of an institution of higher
education that offers an associate,
baccalaureate, graduate or professional degree,
70 percent or more of the institution's regular
students who were initially enrolled on a full-
time basis and were scheduled to complete their
programs during the same 12-month period
described in clause (i)--
(I) completed the educational
programs in which the students were
enrolled;
(II) transferred from the institution
to a higher level educational program;
(III) at the end of the 12-month
period, remained enrolled and making
satisfactory progress toward completion
of the student's educational programs;
or
(IV) entered active duty in the Armed
Forces of the United States.
(iii)(I) In the case of an institution of
higher education that does not award a degree
described in clause (ii), had a placement rate
of 44 percent or more with respect to the
institution's former regular students who--
(aa) remained in the program beyond
the point the students would have
received a 100 percent tuition refund
from the institution;
(bb) were initially enrolled on at
least a half-time basis; and
(cc) were originally scheduled, at
the time of enrollment, to complete
their educational programs during the
same 12-month period described in
clause (i).
(II) The placement rate shall not include
students who are still enrolled and making
satisfactory progress in the educational
programs in which the students were originally
enrolled on the date following 12 months after
the date of the student's last date of
attendance at the institution.
(III) The placement rate is calculated by
determining the percentage of all those former
regular students who--
(aa) are employed, in an occupation
for which the institution provided
training, on the date following 12
months after the date of their last day
of attendance at the institution;
(bb) were employed, in an occupation
for which the institution provided
training, for at least 13 weeks before
the date following 12 months after the
date of their last day of attendance at
the institution; or
(cc) entered active duty in the Armed
Forces of the United States.
(IV) The placement rate shall not include as
placements a student or former student for whom
the institution is the employer.
(B) For purposes of determining a rate of completion
and a placement rate under this paragraph, a student is
originally scheduled, at the time of enrollment, to
complete the educational program on the date when the
student will have been enrolled in the program for the
amount of time normally required to complete the
program. The amount of time normally required to
complete the program for a student who is initially
enrolled full-time is the period of time specified in
the institution's enrollment contract, catalog, or
other materials, for completion of the program by a
full-time student. For a student who is initially
enrolled less than full-time, the period is the amount
of time it would take the student to complete the
program if the student remained enrolled at that level
of enrollment throughout the program.
(6) Reduction of default rates at certain minority
institutions.--
(A) Beneficiaries of exception required to
establish management plan.--After July 1, 1999,
any institution that has a cohort default rate
that equals or exceeds 25 percent for each of
the three most recent fiscal years for which
data are available and that relies on the
exception in subparagraph (B) to continue to be
an eligible institution shall--
(i) submit to the Secretary a default
management plan which the Secretary, in
the Secretary's discretion, after
consideration of the institution's
history, resources, dollars in default,
and targets for default reduction,
determines is acceptable and provides
reasonable assurance that the
institution will, by July 1, 2004, have
a cohort default rate that is less than
25 percent;
(ii) engage an independent third
party (which may be paid with funds
received under section 317 or part B of
title III) to provide technical
assistance in implementing such default
management plan; and
(iii) provide to the Secretary, on an
annual basis or at such other intervals
as the Secretary may require, evidence
of cohort default rate improvement and
successful implementation of such
default management plan.
(B) Discretionary eligibility conditioned on
improvement.--Notwithstanding the expiration of
the exception in paragraph (2)(C), the
Secretary may, in the Secretary's discretion,
continue to treat an institution described in
subparagraph (A) of this paragraph as an
eligible institution for each of the 1-year
periods beginning on July 1 of 1999 through
2003, only if the institution submits by the
beginning of such period evidence satisfactory
to the Secretary that--
(i) such institution has complied and
is continuing to comply with the
requirements of subparagraph (A); and
(ii) such institution has made
substantial improvement, during each of
the preceding 1-year periods, in the
institution's cohort default rate.
(7) Default prevention and assessment of eligibility
based on high default rates.--
(A) First year.--
(i) In general.--An institution whose
cohort default rate is equal to or
greater than the threshold percentage
specified in paragraph (2)(B)(iv) in
any fiscal year shall establish a
default prevention task force to
prepare a plan to--
(I) identify the factors
causing the institution's
cohort default rate to exceed
such threshold;
(II) establish measurable
objectives and the steps to be
taken to improve the
institution's cohort default
rate; and
(III) specify actions that
the institution can take to
improve student loan repayment,
including appropriate
counseling regarding loan
repayment options.
(ii) Technical assistance.--Each
institution subject to this
subparagraph shall submit the plan
under clause (i) to the Secretary, who
shall review the plan and offer
technical assistance to the institution
to promote improved student loan
repayment.
(B) Second consecutive year.--
(i) In general.--An institution whose
cohort default rate is equal to or
greater than the threshold percentage
specified in paragraph (2)(B)(iv) for
two consecutive fiscal years, shall
require the institution's default
prevention task force established under
subparagraph (A) to review and revise
the plan required under such
subparagraph, and shall submit such
revised plan to the Secretary.
(ii) Review by the secretary.--The
Secretary shall review each revised
plan submitted in accordance with this
subparagraph, and may direct that such
plan be amended to include actions,
with measurable objectives, that the
Secretary determines, based on
available data and analyses of student
loan defaults, will promote student
loan repayment.
(8) Participation rate index.--
(A) In general.--An institution that
demonstrates to the Secretary that the
institution's participation rate index is equal
to or less than 0.0375 for any of the 3 most
recent fiscal years for which data is available
shall not be subject to paragraph (2). The
participation rate index shall be determined by
multiplying the institution's cohort default
rate for loans under part B or D, or weighted
average cohort default rate for loans under
parts B and D, by the percentage of the
institution's regular students, enrolled on at
least a half-time basis, who received a loan
made under part B or D for a 12-month period
ending during the 6 months immediately
preceding the fiscal year for which the cohort
of borrowers used to calculate the
institution's cohort default rate is
determined.
(B) Data.--An institution shall provide the
Secretary with sufficient data to determine the
institution's participation rate index within
30 days after receiving an initial notification
of the institution's draft cohort default rate.
(C) Notification.--Prior to publication of a
final cohort default rate for an institution
that provides the data described in
subparagraph (B), the Secretary shall notify
the institution of the institution's compliance
or noncompliance with subparagraph (A).
(9) Sunset.--No institution shall be subject to
paragraph (2) after the transition period described in
section 481B(e)(3).
(d) Eligible Lender.--
(1) In general.--Except as provided in paragraphs (2)
through (6), the term ``eligible lender'' means--
(A) a National or State chartered bank, a
mutual savings bank, a savings and loan
association, a stock savings bank, or a credit
union which--
(i) is subject to examination and
supervision by an agency of the United
States or of the State in which its
principal place of operation is
established, and
(ii) does not have as its primary
consumer credit function the making or
holding of loans made to students under
this part unless (I) it is a bank which
is wholly owned by a State, or a bank
which is subject to examination and
supervision by an agency of the United
States, makes student loans as a
trustee pursuant to an express trust,
operated as a lender under this part
prior to January 1, 1975, and which
meets the requirements of this
provision prior to the enactment of the
Higher Education Amendments of 1992,
(II) it is a single wholly owned
subsidiary of a bank holding company
which does not have as its primary
consumer credit function the making or
holding of loans made to students under
this part, (III) it is a bank (as
defined in section 3(a)(1) of the
Federal Deposit Insurance Act (12
U.S.C. 1813(a)(1)) that is a wholly
owned subsidiary of a nonprofit
foundation, the foundation 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, and the bank makes loans under
this part only to undergraduate
students who are age 22 or younger and
has a portfolio of such loans that is
not more than $5,000,000, or (IV) it is
a National or State chartered bank, or
a credit union, with assets of less
than $1,000,000,000;
(B) a pension fund as defined in the Employee
Retirement Income Security Act;
(C) an insurance company which is subject to
examination and supervision by an agency of the
United States or a State;
(D) in any State, a single agency of the
State or a single nonprofit private agency
designated by the State;
(E) an eligible institution which meets the
requirements of paragraphs (2) through (5) of
this subsection;
(F) for purposes only of purchasing and
holding loans made by other lenders under this
part, the Student Loan Marketing Association or
the Holding Company of the Student Loan
Marketing Association, including any subsidiary
of the Holding Company, created pursuant to
section 440, or an agency of any State
functioning as a secondary market;
(G) for purposes of making loans under
sections 428B(d) and 428C, the Student Loan
Marketing Association or the Holding Company of
the Student Loan Marketing Association,
including any subsidiary of the Holding
Company, created pursuant to section 440;
(H) for purposes of making loans under
sections 428(h) and 428(j), a guaranty agency;
(I) a Rural Rehabilitation Corporation, or
its successor agency, which has received
Federal funds under Public Law 499, Eighty-
first Congress (64 Stat. 98 (1950));
(J) for purpose of making loans under section
428C, any nonprofit private agency functioning
in any State as a secondary market; and
(K) a consumer finance company subsidiary of
a national bank which, as of the date of
enactment of this subparagraph, through one or
more subsidiaries: (i) acts as a small business
lending company, as determined under
regulations of the Small Business
Administration under section 120.470 of title
13, Code of Federal Regulations (as such
section is in effect on the date of enactment
of this subparagraph); and (ii) participates in
the program authorized by this part pursuant to
subparagraph (C), provided the national bank
and all of the bank's direct and indirect
subsidiaries taken together as a whole, do not
have, as their primary consumer credit
function, the making or holding of loans made
to students under this part.
(2) Requirements for eligible institutions.--
(A) In general.--To be an eligible lender
under this part, an eligible institution--
(i) shall employ at least one person
whose full-time responsibilities are
limited to the administration of
programs of financial aid for students
attending such institution;
(ii) shall not be a home study
school;
(iii) shall not--
(I) make a loan to any
undergraduate student;
(II) make a loan other than a
loan under section 428 or 428H
to a graduate or professional
student; or
(III) make a loan to a
borrower who is not enrolled at
that institution;
(iv) shall award any contract for
financing, servicing, or administration
of loans under this title on a
competitive basis;
(v) shall offer loans that carry an
origination fee or an interest rate, or
both, that are less than such fee or
rate authorized under the provisions of
this title;
(vi) shall not have a cohort default
rate (as defined in subsection (m))
greater than 10 percent;
(vii) shall, for any year for which
the institution engages in activities
as an eligible lender, provide for a
compliance audit conducted in
accordance with section
428(b)(1)(U)(iii)(I), and the
regulations thereunder, and submit the
results of such audit to the Secretary;
(viii) shall use any proceeds from
special allowance payments and interest
payments from borrowers, interest
subsidies received from the Department
of Education, and any proceeds from the
sale or other disposition of loans, for
need-based grant programs; and
(ix) shall have met the requirements
of subparagraphs (A) through (F) of
this paragraph as in effect on the day
before the date of enactment of the
Higher Education Reconciliation Act of
2005, and made loans under this part,
on or before April 1, 2006.
(B) Administrative expenses.--An eligible
lender under subparagraph (A) shall be
permitted to use a portion of the proceeds
described in subparagraph (A)(viii) for
reasonable and direct administrative expenses.
(C) Supplement, not supplant.--An eligible
lender under subparagraph (A) shall ensure that
the proceeds described in subparagraph
(A)(viii) are used to supplement, and not to
supplant, non-Federal funds that would
otherwise be used for need-based grant
programs.
(3) Disqualification for high default rates.--The
term ``eligible lender'' does not include any eligible
institution in any fiscal year immediately after the
fiscal year in which the Secretary determines, after
notice and opportunity for a hearing, that for each of
2 consecutive years, 15 percent or more of the total
amount of such loans as are described in section
428(a)(1) made by the institution with respect to
students at that institution and repayable in each such
year, are in default, as defined in subsection (m).
(4) Waiver of disqualification.--Whenever the
Secretary determines that--
(A) there is reasonable possibility that an
eligible institution may, within 1 year after a
determination is made under paragraph (3),
improve the collection of loans described in
section 428(a)(1), so that the application of
paragraph (3) would be a hardship to that
institution, or
(B) the termination of the lender's status
under paragraph (3) would be a hardship to the
present or for prospective students of the
eligible institution, after considering the
management of that institution, the ability of
that institution to improve the collection of
loans, the opportunities that institution
offers to economically disadvantaged students,
and other related factors,
the Secretary shall waive the provisions of paragraph
(3) with respect to that institution. Any determination
required under this paragraph shall be made by the
Secretary prior to the termination of an eligible
institution as a lender under the exception of
paragraph (3). Whenever the Secretary grants a waiver
pursuant to this paragraph, the Secretary shall provide
technical assistance to the institution concerned in
order to improve the collection rate of such loans.
(5) Disqualification for use of certain incentives.--
The term ``eligible lender'' does not include any
lender that the Secretary determines, after notice and
opportunity for a hearing, has--
(A) offered, directly or indirectly, points,
premiums, payments (including payments for
referrals and for processing or finder fees),
prizes, stock or other securities, travel,
entertainment expenses, tuition payment or
reimbursement, the provision of information
technology equipment at below-market value,
additional financial aid funds, or other
inducements, to any institution of higher
education, any employee of an institution of
higher education, or any individual or entity
in order to secure applicants for loans under
this part;
(B) conducted unsolicited mailings, by postal
or electronic means, of student loan
application forms to students enrolled in
secondary schools or postsecondary
institutions, or to family members of such
students, except that applications may be
mailed, by postal or electronic means, to
students or borrowers who have previously
received loans under this part from such
lender;
(C) entered into any type of consulting
arrangement, or other contract to provide
services to a lender, with an employee who is
employed in the financial aid office of an
institution of higher education, or who
otherwise has responsibilities with respect to
student loans or other financial aid of the
institution;
(D) compensated an employee who is employed
in the financial aid office of an institution
of higher education, or who otherwise has
responsibilities with respect to student loans
or other financial aid of the institution, and
who is serving on an advisory board,
commission, or group established by a lender or
group of lenders for providing such service,
except that the eligible lender may reimburse
such employee for reasonable expenses incurred
in providing such service;
(E) performed for an institution of higher
education any function that such institution of
higher education is required to perform under
this title, except that a lender shall be
permitted to perform functions on behalf of
such institution in accordance with section
485(b) or 485(l);
(F) paid, on behalf of an institution of
higher education, another person to perform any
function that such institution of higher
education is required to perform under this
title, except that a lender shall be permitted
to perform functions on behalf of such
institution in accordance with section 485(b)
or 485(l);
(G) provided payments or other benefits to a
student at an institution of higher education
to act as the lender's representative to secure
applications under this title from individual
prospective borrowers, unless such student--
(i) is also employed by the lender
for other purposes; and
(ii) made all appropriate disclosures
regarding such employment;
(H) offered, directly or indirectly, loans
under this part as an inducement to a
prospective borrower to purchase a policy of
insurance or other product; or
(I) engaged in fraudulent or misleading
advertising.
It shall not be a violation of this paragraph for a
lender to provide technical assistance to institutions
of higher education comparable to the kinds of
technical assistance provided to institutions of higher
education by the Department.
(6) Rebate fee requirement.--To be an eligible lender
under this part, an eligible lender shall pay rebate
fees in accordance with section 428C(f).
(7) Eligible lender trustees.--Notwithstanding any
other provision of this subsection, an eligible lender
may not make or hold a loan under this part as trustee
for an institution of higher education, or for an
organization affiliated with an institution of higher
education, unless--
(A) the eligible lender is serving as trustee
for that institution or organization as of the
date of enactment of the Third Higher Education
Extension Act of 2006 under a contract that was
originally entered into before the date of
enactment of such Act and that continues in
effect or is renewed after such date; and
(B) the institution or organization, and the
eligible lender, with respect to its duties as
trustee, each comply on and after January 1,
2007, with the requirements of paragraph (2),
except that--
(i) the requirements of clauses (i),
(ii), (vi), and (viii) of paragraph
(2)(A) shall, subject to clause (ii) of
this subparagraph, only apply to the
institution (including both an
institution for which the lender serves
as trustee and an institution
affiliated with an organization for
which the lender serves as trustee);
(ii) in the case of an organization
affiliated with an institution--
(I) the requirements of
clauses (iii) and (v) of
paragraph (2)(A) shall apply to
the organization; and
(II) the requirements of
clause (viii) of paragraph
(2)(A) shall apply to the
institution or the organization
(or both), if the institution
or organization receives
(directly or indirectly) the
proceeds described in such
clause;
(iii) the requirements of clauses
(iv) and (ix) of paragraph (2)(A) shall
not apply to the eligible lender,
institution, or organization; and
(iv) the eligible lender,
institution, and organization shall
ensure that the loans made or held by
the eligible lender as trustee for the
institution or organization, as the
case may be, are included in a
compliance audit in accordance with
clause (vii) of paragraph (2)(A).
(8) School as lender program audit.--Each institution
serving as an eligible lender under paragraph (1)(E),
and each eligible lender serving as a trustee for an
institution of higher education or an organization
affiliated with an institution of higher education,
shall annually complete and submit to the Secretary a
compliance audit to determine whether--
(A) the institution or lender is using all
proceeds from special allowance payments and
interest payments from borrowers, interest
subsidies received from the Department, and any
proceeds from the sale or other disposition of
loans, for need-based grant programs, in
accordance with paragraph (2)(A)(viii);
(B) the institution or lender is using not
more than a reasonable portion of the proceeds
described in paragraph (2)(A)(viii) for direct
administrative expenses; and
(C) the institution or lender is ensuring
that the proceeds described in paragraph
(2)(A)(viii) are being used to supplement, and
not to supplant, Federal and non-Federal funds
that would otherwise be used for need-based
grant programs.
(e) Line of Credit.--The term ``line of credit'' means an
arrangement or agreement between the lender and the borrower
whereby a loan is paid out by the lender to the borrower in
annual installments, or whereby the lender agrees to make, in
addition to the initial loan, additional loans in subsequent
years.
(f) Due Diligence.--The term ``due diligence'' requires the
utilization by a lender, in the servicing and collection of
loans insured under this part, of servicing and collection
practices at least as extensive and forceful as those generally
practiced by financial institutions for the collection of
consumer loans.
(i) Holder.--The term ``holder'' means an eligible lender who
owns a loan.
(j) Guaranty Agency.--The term ``guaranty agency'' means any
State or nonprofit private institution or organization with
which the Secretary has an agreement under section 428(b).
(k) Insurance Beneficiary.--The term ``insurance
beneficiary'' means the insured or its authorized
representative assigned in accordance with section 429(d).
(l) Default.--Except as provided in subsection (m), the term
``default'' includes only such defaults as have existed for (1)
270 days in the case of a loan which is repayable in monthly
installments, or (2) 330 days in the case of a loan which is
repayable in less frequent installments.
(m) Cohort Default Rate.--
(1) In general.--(A) Except as provided in paragraph
(2), the term ``cohort default rate'' means, for any
fiscal year in which 30 or more current and former
students at the institution enter repayment on loans
under section 428, 428A, or 428H, received for
attendance at the institution, the percentage of those
current and former students who enter repayment on such
loans (or on the portion of a loan made under section
428C that is used to repay any such loans) received for
attendance at that institution in that fiscal year who
default before the end of the second fiscal year
following the fiscal year in which the students entered
repayment. The Secretary shall require that each
guaranty agency that has insured loans for current or
former students of the institution afford such
institution a reasonable opportunity (as specified by
the Secretary) to review and correct errors in the
information required to be provided to the Secretary by
the guaranty agency for the purposes of calculating a
cohort default rate for such institution, prior to the
calculation of such rate.
(B) In determining the number of students who default
before the end of such second fiscal year, the
Secretary shall include only loans for which the
Secretary or a guaranty agency has paid claims for
insurance. In considering appeals with respect to
cohort default rates pursuant to subsection (a)(3), the
Secretary shall exclude, from the calculation of the
number of students who entered repayment and from the
calculation of the number of students who default, any
loans which, due to improper servicing or collection,
would, as demonstrated by the evidence submitted in
support of the institution's timely appeal to the
Secretary, result in an inaccurate or incomplete
calculation of such cohort default rate.
(C) For any fiscal year in which fewer than 30 of the
institution's current and former students enter
repayment, the term ``cohort default rate'' means the
percentage of such current and former students who
entered repayment on such loans (or on the portion of a
loan made under section 428C that is used to repay any
such loans) in any of the three most recent fiscal
years, who default before the end of the second fiscal
year following the year in which they entered
repayment.
(2) Special rules.--(A) In the case of a student who
has attended and borrowed at more than one school, the
student (and such student's subsequent repayment or
default) is attributed to each school for attendance at
which the student received a loan that entered
repayment in the fiscal year.
(B) A loan on which a payment is made by the school,
such school's owner, agent, contractor, employee, or
any other entity or individual affiliated with such
school, in order to avoid default by the borrower, is
considered as in default for purposes of this
subsection.
(C) Any loan which has been rehabilitated before the
end of the second fiscal year following the year in
which the loan entered repayment is not considered as
in default for purposes of this subsection. The
Secretary may require guaranty agencies to collect data
with respect to defaulted loans in a manner that will
permit the identification of any defaulted loan for
which (i) the borrower is currently making payments and
has made not less than 6 consecutive on-time payments
by the end of such second fiscal year, and (ii) a
guaranty agency has renewed the borrower's title IV
eligibility as provided in section 428F(b).
(D) For the purposes of this subsection, a loan made
in accordance with section 428A (or the portion of a
loan made under section 428C that is used to repay a
loan made under section 428A) shall not be considered
to enter repayment until after the borrower has ceased
to be enrolled in a course of study leading to a degree
or certificate at an eligible institution on at least a
half-time basis (as determined by the institution) and
ceased to be in a period of forbearance based on such
enrollment. Each eligible lender of a loan made under
section 428A (or a loan made under section 428C a
portion of which is used to repay a loan made under
section 428A) shall provide the guaranty agency with
the information necessary to determine when the loan
entered repayment for purposes of this subsection, and
the guaranty agency shall provide such information to
the Secretary.
(3) Regulations to prevent evasions.--The Secretary
shall prescribe regulations designed to prevent an
institution from evading the application to that
institution of a default rate determination under this
subsection through the use of such measures as
branching, consolidation, change of ownership or
control, or any similar device.
(4) Collection and reporting of cohort default rates
and life of cohort default rates.--(A) The Secretary
shall publish not less often than once every fiscal
year a report showing cohort default data and life of
cohort default rates for each category of institution,
including: (i) four-year public institutions; (ii)
four-year private nonprofit institutions; (iii) two-
year public institutions; (iv) two-year private
nonprofit institutions; (v) four-year proprietary
institutions; (vi) two-year proprietary institutions;
and (vii) less than two-year proprietary institutions.
For purposes of this subparagraph, for any fiscal year
in which one or more current and former students at an
institution enter repayment on loans under section 428,
428B, or 428H, received for attendance at the
institution, the Secretary shall publish the percentage
of those current and former students who enter
repayment on such loans (or on the portion of a loan
made under section 428C that is used to repay any such
loans) received for attendance at the institution in
that fiscal year who default before the end of each
succeeding fiscal year.
(B) The Secretary may designate such additional
subcategories within the categories specified in
subparagraph (A) as the Secretary deems appropriate.
(C) The Secretary shall publish not less often than
once every fiscal year a report showing default data
for each institution for which a cohort default rate is
calculated under this subsection.
(D) The Secretary shall publish the report described
in subparagraph (C) by September 30 of each year.
(5) Transition period; sunset.--
(A) Transition period.--During the transition
period, the cohort default rate for an
institution shall be calculated in the manner
described in section 481B(e)(1).
(B) Sunset.--The Secretary shall not be
subject, and no institution shall be subject,
to the requirements of this subsection after
the transition period.
(C) Definition.--In this paragraph, the term
``transition period'' has the meaning given the
term in section 481B(e)(3).
(o) Economic Hardship.--
(1) In general.--For purposes of this part and part
E, as in effect on the day before the date of enactment
of the PROSPER Act and pursuant to section 461(a) of
such Act, a borrower shall be considered to have an
economic hardship if--
(A) such borrower is working full-time and is
earning an amount which does not exceed the
greater of--
(i) the minimum wage rate described
in section 6 of the Fair Labor
Standards Act of 1938; or
(ii) an amount equal to 150 percent
of the poverty line applicable to the
borrower's family size as determined in
accordance with section 673(2) of the
Community Services Block Grant Act; or
(B) such borrower meets such other criteria
as are established by the Secretary by
regulation in accordance with paragraph (2).
(2) Considerations.--In establishing criteria for
purposes of paragraph (1)(B), the Secretary shall
consider the borrower's income and debt-to-income ratio
as primary factors.
(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 section
438(b)(2)(I)(vi)(II) or a payment under section 781 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) acting as a trustee on behalf of a State,
political subdivision, authority, agency,
instrumentality, or other entity described in
subparagraph (A), (B), or (C), regardless of
whether such State, political subdivision,
authority, agency, instrumentality, or other
entity is an eligible lender under subsection
(d).
(2) Limitations.--
(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 acting as a trustee
on behalf of a State, political
subdivision, authority, agency,
instrumentality, or other
entity described in
subparagraph (A), (B), or (C)
of paragraph (1), regardless of
whether such State, political
subdivision, authority, agency,
instrumentality, or other
entity is an eligible lender
under subsection (d), and such
State, political subdivision,
authority, agency,
instrumentality, or other
entity, on the date of
enactment of the College Cost
Reduction and Access Act, was
the sole beneficial owner of a
loan eligible for any special
allowance payment under section
438.
(ii) Exception.--Notwithstanding
clause (i), a State may elect, in
accordance with regulations of the
Secretary, to waive the requirements of
this subparagraph 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.--
(i) In general.--No State, political
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 State,
political subdivision, authority,
agency, instrumentality, or other
entity is owned or controlled, in whole
or in part, by a for-profit entity.
(ii) Trustees.--A trustee described
in paragraph (1)(D) shall not be an
eligible not-for-profit holder under
this Act with respect to a State,
political subdivision, authority,
agency, instrumentality, or other
entity described in subparagraph (A),
(B), or (C) of paragraph (1),
regardless of whether such State,
political subdivision, authority,
agency, instrumentality, or other
entity is an eligible lender under
subsection (d), if such State,
political subdivision, authority,
agency, instrumentality, or other
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, instrumentality, trustee, or other
entity described in paragraph (1)(A), (B), (C),
or (D) shall be an eligible not-for-profit
holder under this Act with respect to any loan,
or income from any loan, unless--
(i) such State, political
subdivision, authority, agency,
instrumentality, or other entity is the
sole beneficial owner of such loan and
the income from such loan; or
(ii) such trustee holds the loan on
behalf of a State, political
subdivision, authority, agency,
instrumentality, or other entity
described in subparagraph (A), (B), or
(C) of paragraph (1), regardless of
whether such State, political
subdivision, authority, agency,
instrumentality, or other entity is an
eligible lender under subsection (d),
and such State, political subdivision,
authority, agency, instrumentality, or
other entity is the sole beneficial
owner of such loan and the income from
such loan.
(D) Trustee compensation limitations.--A
trustee described in paragraph (1)(D) shall not
receive compensation as consideration for
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) of
paragraph (1), regardless of whether such
State, political subdivision, authority,
agency, instrumentality, or other entity is an
eligible lender under subsection (d), in excess
of reasonable and customary fees.
(E) Rule of construction.--For purposes of
subparagraphs (A), (B), (C), and (D) of this
paragraph, a State, political subdivision,
authority, agency, instrumentality, or other
entity described in subparagraph (A), (B), or
(C) of paragraph (1), regardless of whether
such State, political subdivision, authority,
agency, instrumentality, or other entity is an
eligible lender under subsection (d), 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 such State, political subdivision,
authority, agency, instrumentality, or other
entity, or by the trustee described in
paragraph (1)(D), granting a security interest
in, or otherwise pledging as collateral, such
loan, or the income from such loan, to secure a
debt obligation for which such State, political
subdivision, authority, agency,
instrumentality, or other entity is the issuer
of the debt obligation.
(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 payment 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. 437. REPAYMENT BY THE SECRETARY OF LOANS OF BANKRUPT, DECEASED, OR
DISABLED BORROWERS; TREATMENT OF BORROWERS
ATTENDING SCHOOLS THAT FAIL TO PROVIDE A REFUND,
ATTENDING CLOSED SCHOOLS, OR FALSELY CERTIFIED AS
ELIGIBLE TO BORROW.
(a) Repayment in Full for Death and Disability.--
(1) In general.--If a student borrower who has
received a loan described in subparagraph (A) or (B) of
section 428(a)(1) dies or becomes permanently and
totally disabled (as determined in accordance with
regulations of the Secretary), or if a student borrower
who has received such a loan is unable to engage in any
substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be
expected to result in death, has lasted for a
continuous period of not less than 60 months, or can be
expected to last for a continuous period of not less
than 60 months then the Secretary shall discharge the
borrower's liability on the loan by repaying the amount
owed on the loan. The Secretary may develop such
safeguards as the Secretary determines necessary to
prevent fraud and abuse in the discharge of liability
under this subsection. Notwithstanding any other
provision of this subsection, the Secretary may
promulgate regulations to reinstate the obligation of,
and resume collection on, loans discharged under this
subsection in any case in which--
(A) a borrower received a discharge of
liability under this subsection and after the
discharge the borrower--
(i) receives a loan made, insured, or
guaranteed under this title; or
(ii) has earned income in excess of
the poverty line; or
(B) the Secretary determines the
reinstatement and resumption to be necessary.
(2) Disability determinations.--A borrower who has
been determined by the Secretary of Veterans Affairs to
be unemployable due to a service-connected condition
and who provides documentation of such determination to
the Secretary of Education, shall be considered
permanently and totally disabled for the purpose of
discharging such borrower's loans under this
subsection, and such borrower shall not be required to
present additional documentation for purposes of this
subsection.
(b) Payment of Claims on Loans in Bankruptcy.--The Secretary
shall pay to the holder of a loan described in section
428(a)(1) (A) or (B), 428A, 428B, 428C, or 428H, the amount of
the unpaid balance of principal and interest owed on such
loan--
(1) when the borrower files for relief under chapter
12 or 13 of title 11, United States Code;
(2) when the borrower who has filed for relief under
chapter 7 or 11 of such title commences an action for a
determination of dischargeability under section
523(a)(8)(B) of such title; or
(3) for loans described in section 523(a)(8)(A) of
such title, when the borrower files for relief under
chapter 7 or 11 of such title.
(c) Discharge.--
(1) In general.--If a borrower who received, on or
after January 1, 1986, a loan made, insured, or
guaranteed under this part and the student borrower, or
the student on whose behalf a parent borrowed, is
unable to complete the program in which such student is
enrolled due to the closure of the institution or if
such student's eligibility to borrow under this part
was falsely certified by the eligible institution or
was falsely certified as a result of a crime of
identity theft, or if the institution failed to make a
refund of loan proceeds which the institution owed to
such student's lender, and the borrower meets the
applicable requirements of paragraphs (6) through (8),
then the Secretary shall discharge the borrower's
liability on the loan (including interest and
collection fees) by repaying the amount owed on the
loan and shall subsequently pursue any claim available
to such borrower against the institution and its
affiliates and principals or settle the loan obligation
pursuant to the financial responsibility authority
under subpart 3 of part H. In the case of a discharge
based upon a failure to refund, the amount of the
discharge shall not exceed that portion of the loan
which should have been refunded. The Secretary shall
report to the authorizing committees annually as to the
dollar amount of loan discharges attributable to
failures to make refunds.
(2) Assignment.--A borrower whose loan has been
discharged pursuant to this subsection shall be deemed
to have assigned to the United States the right to a
loan refund up to the amount discharged against the
institution and its affiliates and principals.
(3) Eligibility for additional assistance.--The
period of a student's attendance at an institution at
which the student was unable to complete a course of
study due to the closing of the institution shall not
be considered for purposes of calculating the student's
period of eligibility for additional assistance under
this title.
(4) Special rule.--A borrower whose loan has been
discharged pursuant to this subsection shall not be
precluded from receiving additional grants, loans, or
work assistance under this title for which the borrower
would be otherwise eligible (but for the default on
such discharged loan). The amount discharged under this
subsection shall be treated the same as loans under
section 465(a)(5) of this title, as in effect on the
day before the date of enactment of the PROSPER Act and
pursuant to section 461(a) of such Act.
(5) Reporting.--The Secretary shall report to
consumer reporting agencies with respect to loans which
have been discharged pursuant to this subsection.
(6) Borrower qualifications for a closed school
discharge.--
(A) In general.--In order to qualify for the
discharge of a loan under this subsection due
to the closure of the institution in which the
borrower was enrolled, a borrower shall submit
to the Secretary a written request and sworn
statement--
(i) that contains true factual
assertions;
(ii) that is made by the borrower
under penalty of perjury, and that may
or may not be notarized;
(iii) under which the borrower (or
the student on whose behalf a parent
borrowed) states--
(I) that the borrower or the
student--
(aa) received, on or
after January 1, 1986,
the proceeds of a loan
made, insured, or
guaranteed under this
title to attend a
program of study at an
institution of higher
education;
(bb)(AA) did not
complete the program of
study because the
institution closed
while the student was
enrolled; or
(BB) the student
withdrew from the
institution not more
than 120 days before
the institution closed,
or in the case of
exceptional
circumstances described
in subparagraph (B),
not more than the
period by which such
120-day period is
extended under such
subparagraph; and
(cc) attempted but
was unable to complete
the program of study
through a teach-out at
another institution or
by transferring
academic credits or
hours earned at the
closed institution to
another institution;
(II) whether the borrower (or
the student) has made a claim
with respect to the
institutions's closing with any
third party, such as the holder
of a performance bond or a
tuition recovery program, and,
if so, the amount of any
payment received by the
borrower (or the student) or
credited to the borrower's loan
obligation; and
(III) that the borrower (or
the student)--
(aa) agrees to
provide to the
Secretary or the holder
of the loan upon
request other
documentation
reasonably available to
the borrower that
demonstrates that the
borrower meets the
qualifications for
discharge under this
subsection; and
(bb) agrees to
cooperate with the
Secretary in
enforcement actions in
accordance with
subparagraph (C) and to
transfer any right to
recovery against a
third party to the
Secretary in accordance
with subparagraph (D).
(B) Exceptional circumstances.--
(i) In general.--The Secretary may
extend the 120-day period described in
subparagraph (A)(iii)(I)(bb)(BB) if the
Secretary determines that exceptional
circumstances related to an
institution's closing justify an
extension.
(ii) Definition.--For purposes of
this subsection, the term ``exceptional
circumstances'', when used with respect
to an institution that closed, includes
the loss of accreditation of
institution, the institutions's
discontinuation of the majority of its
academic programs, action by the State
to revoke the institution's license to
operate or award academic credentials
in the State, or a finding by a State
or Federal Government agency that the
institution violated State or Federal
law.
(C) cooperation by borrower in enforcement
actions.--
(i) In general.--In order to obtain a
discharge described in subparagraph
(A), a borrower shall cooperate with
the Secretary in any judicial or
administrative proceeding brought by
the Secretary to recover amounts
discharged or to take other enforcement
action with respect to the conduct on
which the discharge was based. At the
request of the Secretary and upon the
Secretary's tendering to the borrower
the fees and costs that are customarily
provided in litigation to reimburse
witnesses, the borrower shall--
(I) provide testimony
regarding any representation
made by the borrower to support
a request for discharge;
(II) produce any documents
reasonably available to the
borrower with respect to those
representations; and
(III) if required by the
Secretary, provide a sworn
statement regarding those
documents and representations.
(ii) Denial of request for
discharge.--The Secretary shall deny
the request for such a discharge or
revoke the discharge of a borrower
who--
(I) fails to provide the
testimony, documents, or a
sworn statement required under
clause (i); or
(II) provides testimony,
documents, or a sworn statement
that does not support the
material representations made
by the borrower to obtain the
discharge.
(D) Transfer to the secretary of borrower's
right of recovery against third parties.--
(i) In general.--Upon receiving a
discharge described in subparagraph (A)
of a loan, the borrower shall be deemed
to have assigned to and relinquished in
favor of the Secretary any right to a
loan refund for such loan (up to the
amount discharged) that the borrower
(or student) may have by contract or
applicable law with respect to the loan
or the enrollment agreement for the
program for which the loan was
received, against the institution, its
principals, its affiliates and their
successors, its sureties, and any
private fund, including the portion of
a public fund that represents funds
received from a private party.
(ii) Application.--The provisions of
this subsection apply notwithstanding
any provision of State law that would
otherwise restrict transfer of such
rights by the borrower (or student),
limit, or prevent a transferee from
exercising such rights, or establish
procedures or a scheme of distribution
that would prejudice the Secretary's
ability to recover on such rights.
(iii) Rule of construction.--Nothing
in this subsection shall limit or
foreclose the borrower's (or student's)
right to pursue legal and equitable
relief regarding disputes arising from
matters unrelated to the discharged
loan.
(E) Discharge procedures.--
(i) In general.--After confirming the
date of an institution's closure, the
Secretary shall identify any borrower
(or student on whose behalf a parent
borrowed) who appears to have been
enrolled at the institution on the
closure date of the institution or to
have withdrawn not more than 120 days
prior to the closure date (or in the
case of exceptional circumstances
described in subparagraph (B), not more
than the period by which such 120-day
period is extended under such
subparagraph. In the case of a loan
made, insured, or guaranteed under this
part, a guaranty agency shall notify
the Secretary immediately whenever it
becomes aware of reliable information
indicating an institution may have
closed.
(ii) Borrower address.--
(I) Known.--If the borrower's
current address is known, the
Secretary shall mail the
borrower a discharge
application and an explanation
of the qualifications and
procedures for obtaining a
discharge. The Secretary or the
guaranty agency shall promptly
suspend any efforts to collect
from the borrower on any
affected loan. The Secretary
may continue to receive
borrower payments of the loan
for which the discharge
application has been filed.
(II) Unknown.--If the
borrower's current address is
unknown, the Secretary shall
attempt to locate the borrower
and determine the borrower's
potential eligibility for a
discharge described in
subparagraph (A) by consulting
with representatives of the
closed institution, the
institution's licensing agency,
the institution's accrediting
agency, and other appropriate
parties. If the Secretary
learns the new address of a
borrower, the Secretary shall
mail to the borrower a
discharge application and
explanation, and shall suspend
collection on the loan, as
described in subclause (I).
(iii) Sworn statement.--If a borrower
fails to submit the written request and
sworn statement described subparagraph
(A) not later than 60 days after date
on which the Secretary mails the
discharge application under clause
(ii), the Secretary--
(I) shall resume collection
on the loan and grant
forbearance of principal and
interest for the period in
which collection activity was
suspended; and
(II) may capitalize any
interest accrued and not paid
during such period.
(iv) Notification.--
(I) Qualifications met.--If
the Secretary determines that a
borrower who requests a
discharge described in
subparagraph (A) meets the
qualifications for such a
discharge, the Secretary
shall--
(aa) notify the
borrower in writing of
that determination; and
(bb) not regard a
borrower who has
defaulted on a loan
that has been so
discharged as in
default on the loan
after such discharge,
and such a borrower
shall be eligible to
receive assistance
under this title.
(II) Qualifications not
met.--If the Secretary
determines that a borrower who
requests a discharge described
in subparagraph (A) does not
meet the qualifications for
such a discharge, the Secretary
or guaranty agency shall resume
collection on the loan and
notify the borrower in writing
of that determination and the
reasons for the determination.
(7) Borrower qualifications for a false certification
discharge.--
(A) Application.--
(i) In general.--In order to qualify
for false certification discharge under
this subsection, the borrower shall
submit to the Secretary, on a form
approved by the Secretary, an
application for discharge that--
(I) does not need not be
notarized, but shall be made by
the borrower under penalty of
perjury; and
(II) demonstrates to the
satisfaction of the Secretary
that the requirements in
subparagraphs (B) through (G)
have been met.
(ii) Notification.--If the Secretary
determines the application does not
meet the requirements of clause (i),
the Secretary shall notify the
applicant and explain why the
application does not meet the
requirements.
(B) High school diploma or equivalent.--In
the case of a borrower requesting a false
certification discharge based on not having had
a high school diploma and not having met the
alternative to graduation from high school
eligibility requirements under section 484(d)
applicable at the time the loan was originated,
and the institution or a third party to which
the institution referred the borrower falsified
the student's high school diploma, the borrower
shall state in the application that the
borrower (or the student on whose behalf a
parent borrowed)--
(i) reported not having a valid high
school diploma or its equivalent at the
time the loan was certified; and
(ii) did not satisfy the alternative
to graduation from high school
statutory or regulatory eligibility
requirements identified on the
application form and applicable at the
time the institution certified the
loan.
(C) Disqualifying condition.--In the case of
a borrower requesting a false certification
discharge based on a condition that would
disqualify the borrower from employment in the
occupation that the program for which the
borrower received the loan was intended, the
borrower shall state in the application that
the borrower (or student on whose behalf the
parent borrowed) did not meet State
requirements for employment (in the student's
State of residence) in the occupation that the
program for which the borrower received the
loan was intended because of a physical or
mental condition, age, criminal record, or
other reason accepted by the Secretary.
(D) Unauthorized loan.--In the case of a
borrower requesting a discharge under this
subsection because the institution signed the
borrower's name on the loan application or
promissory note without the borrower's
authorization, the borrower shall--
(i) state that the borrower did not
sign the document in question or
authorize the institution to do so; and
(ii) provide 5 different specimens of
the borrower's signature, 2 of which
must be within one year before or after
the date of the contested signature.
(E) Unauthorized payment.--In the case of a
borrower requesting a false certification
discharge because the institution, without the
borrower's authorization, endorsed the
borrower's loan check or signed the borrower's
authorization for electronic funds transfer,
the borrower shall--
(i) state that the borrower did not
endorse the loan check or sign the
authorization for electronic funds
transfer or authorize the institution
to do so;
(ii) provide 5 different specimens of
the borrower's signature, 2 of which
must be within one year before or after
the date of the contested signature;
and
(iii) state that the proceeds of the
contested disbursement were not
delivered to the borrower or applied to
charges owed by the borrower to the
institution.
(F) Identity theft.--
(i) In general.--In the case of an
individual whose eligibility to borrow
was falsely certified because the
individual was a victim of the crime of
identity theft and is requesting a
discharge, the individual shall--
(I) certify that the
individual did not sign the
promissory note, or that any
other means of identification
used to obtain the loan was
used without the authorization
of the individual claiming
relief;
(II) certify that the
individual did not receive or
benefit from the proceeds of
the loan with knowledge that
the loan had been made without
the authorization of the
individual;
(III) provide a copy of a
local, State, or Federal court
verdict or judgment that
conclusively determines that
the individual who is named as
the borrower of the loan was
the victim of a crime of
identity theft; and
(IV) if the judicial
determination of the crime does
not expressly state that the
loan was obtained as a result
of the crime of identity theft,
provide--
(aa) authentic
specimens of the
signature of the
individual, as
described in
subparagraph (D)(ii),
or of other means of
identification of the
individual, as
applicable,
corresponding to the
means of identification
falsely used to obtain
the loan; and
(bb) statement of
facts that demonstrate,
to the satisfaction of
the Secretary, that
eligibility for the
loan in question was
falsely certified as a
result of the crime of
identity theft
committed against that
individual.
(ii) Definitions.--For purposes of
this subparagraph:
(I) Identity theft.--The term
``identity theft'' means the
unauthorized use of the
identifying information of
another individual that is
punishable under section 1028,
1028A, 1029, or 1030 of title
18, United States Code, or
substantially comparable State
or local law.
(II) Identifying
information.--The term
``identifying information''
includes--
(aa) name, Social
Security number, date
of birth, official
State or government
issued driver's license
or identification
number, alien
registration number,
government passport
number, and employer or
taxpayer identification
number;
(bb) unique biometric
data, such as
fingerprints,
voiceprint, retina or
iris image, or unique
physical
representation;
(cc) unique
electronic
identification number,
address, or routing
code; or
(dd)
telecommunication
identifying information
or access device (as
defined in 18 U.S.C.
1029(e)) borrower
qualifications for a
false certification
discharge
(G) Claim to third party.--The borrower shall
state whether the borrower has made a claim
with respect to the institutions's false
certification or unauthorized payment with any
third party, such as the holder of a
performance bond or a tuition recovery program,
and, if so, the amount of any payment received
by the borrower or credited to the borrower's
loan obligation.
(H) Cooperation with the secretary.--The
borrower shall state that the borrower--
(i) agrees to provide to the
Secretary upon request other
documentation reasonably available to
the borrower that demonstrates that the
borrower meets the qualifications for
discharge under this subsection; and
(ii) agrees to cooperate with the
Secretary in enforcement actions and to
transfer any right to recovery against
a third party to the Secretary.
(8) Borrower qualifications for an unpaid refund
discharge.--To receive an unpaid refund discharge of a
portion of a loan under this subsection, a borrower
shall submit to the holder or guaranty agency a written
application--
(A) that requests the information required to
calculate the amount of the discharge;
(B) that the borrower signs for the purpose
of swearing to the accuracy of the information;
(C) that is made by the borrower under
penalty of perjury, and that may or may not be
notarized;
(D) under which the borrower states--
(i) that the borrower--
(I) received, on or after
January 1, 1986, the proceeds
of a loan, in whole or in part,
made, insured, or guaranteed
under this title to attend an
institution of higher
education;
(II) did not attend,
withdrew, or was terminated
from the institution within a
timeframe that entitled the
borrower to a refund; and
(III) did not receive the
benefit of a refund to which
the borrower was entitled
either from the institution or
from a third party, such as the
holder of a performance bond or
a tuition recovery program;
(ii) whether the borrower has any
other application for discharge pending
for this loan; and
(iii) that the borrower--
(I) agrees to provide to the
Secretary upon request other
documentation reasonably
available to the borrower that
demonstrates that the borrower
meets the qualifications for
discharge under this
subsection; and
(II) agrees to cooperate with
the Secretary in enforcement
actions and to transfer any
right to recovery against a
third party to the Secretary.
(d) Repayment of Loans to Parents.--If a student on whose
behalf a parent has received a loan described in section 428B
dies, then the Secretary shall discharge the borrower's
liability on the loan by repaying the amount owed on the loan.
* * * * * * *
Part C--Federal Work-Study Programs
SEC. 441. PURPOSE; APPROPRIATIONS AUTHORIZED.
(a) Purpose.--The purpose of this part is to stimulate and
promote the [part-time] paid employment of students who are
enrolled as undergraduate[, graduate, or professional] students
and who are in need of earnings from employment to pursue
courses of study at eligible institutions, and to encourage
students receiving Federal student financial assistance to
participate in [community service] work-based learning
activities that will benefit the Nation and engender in the
students a sense of social responsibility and commitment to the
community.
(b) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this [part, such sums as may be
necessary for fiscal year 2009 and each of the five succeeding
fiscal years.] part, $1,722,858,000 for fiscal year 2019 and
each of the 5 succeeding fiscal years.
[(c) Community Services.--For purposes of this part, the term
``community services'' means services which are identified by
an institution of higher education, through formal or informal
consultation with local nonprofit, governmental, and community-
based organizations, as designed to improve the quality of life
for community residents, particularly low-income individuals,
or to solve particular problems related to their needs,
including--
[(1) such fields as health care, child care
(including child care services provided on campus that
are open and accessible to the community), literacy
training, education (including tutorial services),
welfare, social services, transportation, housing and
neighborhood improvement, public safety, emergency
preparedness and response, crime prevention and
control, recreation, rural development, and community
improvement;
[(2) work in a project, as defined in section 101(20)
of the National and Community Service Act of 1990 (42
U.S.C. 12511(20));
[(3) support services to students with disabilities,
including students with disabilities who are enrolled
at the institution; and
[(4) activities in which a student serves as a mentor
for such purposes as--
[(A) tutoring;
[(B) supporting educational and recreational
activities; and
[(C) counseling, including career
counseling.]
(c) Work-Based Learning.--For purposes of this part, the term
``work-based learning'' means paid interactions with industry
or community professionals in real workplace settings that
foster in-depth, first-hand engagement with the tasks required
of a given career field, that are aligned to a student's field
of study.
[SEC. 442. ALLOCATION OF FUNDS.
[(a) Allocation Based on Previous Allocation.--(1) From the
amount appropriated pursuant to section 441(b) for each fiscal
year, the Secretary shall first allocate to each eligible
institution for each succeeding fiscal year, an amount equal to
100 percent of the amount such institution received under
subsections (a) and (b) for fiscal year 1999 (as such
subsections were in effect with respect to allocations for such
fiscal year).
[(2)(A) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this part after fiscal year
1999 but is not a first or second time participant, an amount
equal to the greater of--
[(i) $5,000; or
[(ii) 90 percent of the amount received and used
under this part for the first year it participated in
the program.
[(B) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this part after fiscal year
1999 and is a first or second time participant, an amount equal
to the greatest of--
[(i) $5,000;
[(ii) an amount equal to (I) 90 percent of the amount
received and used under this part in the second
preceding fiscal year by eligible institutions offering
comparable programs of instruction, divided by (II) the
number of students enrolled at such comparable
institutions in such fiscal year, multiplied by (III)
the number of students enrolled at the applicant
institution in such fiscal year; or
[(iii) 90 percent of the institution's allocation
under this part for the preceding fiscal year.
[(C) Notwithstanding subparagraphs (A) and (B) of this
paragraph, the Secretary shall allocate to each eligible
institution which--
[(i) was a first-time participant in the program in
fiscal year 2000 or any subsequent fiscal year, and
[(ii) received a larger amount under this subsection
in the second year of participation,
an amount equal to 90 percent of the amount it received under
this subsection in its second year of participation.
[(3)(A) If the amount appropriated for any fiscal year is
less than the amount required to be allocated to all
institutions under paragraph (1) of this subsection, then the
amount of the allocation to each such institution shall be
ratably reduced.
[(B) If the amount appropriated for any fiscal year is more
than the amount required to be allocated to all institutions
under paragraph (1) but less than the amount required to be
allocated to all institutions under paragraph (2), then--
[(i) the Secretary shall allot the amount required to
be allocated to all institutions under paragraph (1),
and
[(ii) the amount of the allocation to each
institution under paragraph (2) shall be ratably
reduced.
[(C) If additional amounts are appropriated for any such
fiscal year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount allocated
equals the amount required to be allocated under paragraphs (1)
and (2) of this subsection).
[(4)(A) Notwithstanding any other provision of this section,
the Secretary may allocate an amount equal to not more than 10
percent of the amount by which the amount appropriated in any
fiscal year to carry out this part exceeds $700,000,000 among
eligible institutions described in subparagraph (B).
[(B) In order to receive an allocation pursuant to
subparagraph (A) an institution shall be an eligible
institution from which 50 percent or more of the Pell Grant
recipients attending such eligible institution graduate or
transfer to a 4-year institution of higher education.
[(b) Allocation of Excess Based on Share of Excess Eligible
Amounts.--(1) From the remainder of the amount appropriated
pursuant to section 441(b) after making the allocations
required by subsection (a), the Secretary shall allocate to
each eligible institution which has an excess eligible amount
an amount which bears the same ratio to such remainder as such
excess eligible amount bears to the sum of the excess eligible
amounts of all such eligible institutions (having such excess
eligible amounts).
[(2) For any eligible institution, the excess eligible amount
is the amount, if any, by which--
[(A)(i) the amount of that institution's need (as
determined under subsection (c)), divided by (ii) the
sum of the need of all institutions (as so determined),
multiplied by (iii) the amount appropriated pursuant to
section 441(b) for the fiscal year; exceeds
[(B) the amount required to be allocated to that
institution under subsection (a).
[(c) Determination of Institution's Need.--(1) The amount of
an institution's need is equal to the sum of the self-help need
of the institution's eligible undergraduate students and the
self-help need of the institution's eligible graduate and
professional students.
[(2) To determine the self-help need of an institution's
eligible undergraduate students, the Secretary shall--
[(A) establish various income categories for
dependent and independent undergraduate students;
[(B) establish an expected family contribution for
each income category of dependent and independent
undergraduate students, determined on the basis of the
average expected family contribution (computed in
accordance with part F of this title) of a
representative sample within each income category for
the second preceding fiscal year;
[(C) compute 25 percent of the average cost of
attendance for all undergraduate students;
[(D) multiply the number of eligible dependent
students in each income category by the lesser of--
[(i) 25 percent of the average cost of
attendance for all undergraduate students
determined under subparagraph (C); or
[(ii) the average cost of attendance for all
undergraduate students minus the expected
family contribution determined under
subparagraph (B) for that income category,
except that the amount computed by such
subtraction shall not be less than zero;
[(E) add the amounts determined under subparagraph
(D) for each income category of dependent students; and
[(F) multiply the number of eligible independent
students in ach income category by the lesser of--
[(i) 25 percent of the average cost of
attendance for all undergraduate students
determined under subparagraph (C); or
[(ii) the average cost of attendance for all
undergraduate students minus the expected
family contribution determined under
subparagraph (B) for that income category,
except that the amount computed by such
subtraction for any income category shall not
be less than zero;
[(G) add the amounts determined under subparagraph
(F) for each income category of independent students;
and
[(H) add the amounts determined under subparagraphs
(E) and (G).
[(3) To determine the self-help need of an institution's
eligible graduate and professional students, the Secretary
shall--
[(A) establish various income categories of graduate
and professional students;
[(B) establish an expected family contribution for
each income category of graduate and professional
students, determined on the basis of the average
expected family contribution (computed in accordance
with part F of this title) of a representative sample
within each income category for the second preceding
fiscal year;
[(C) determine the average cost of attendance for all
graduate and professional students;
[(D) subtract from the average cost of attendance for
all graduate and professional students (determined
under subparagraph (C)), the expected family
contribution (determined under subparagraph (B)) for
each income category, except that the amount computed
by such subtraction for any income category shall not
be less than zero;
[(E) multiply the amounts determined under
subparagraph (D) by the number of eligible students in
each category; and
[(F) add the amounts determined under subparagraph
(E) of this paragraph for each income category.
[(4)(A) For purposes of paragraphs (2) and (3), the term
``average cost of attendance'' means the average of the
attendance costs for undergraduate students and for graduate
and professional students, which shall include (i) tuition and
fees determined in accordance with subparagraph (B), (ii)
standard living expenses determined in accordance with
subparagraph (C), and (iii) books and supplies determined in
accordance with subparagraph (D).
[(B) The average undergraduate and graduate and professional
tuition and fees described in subparagraph (A)(i) shall be
computed on the basis of information reported by the
institution to the Secretary, which shall include (i) total
revenue received by the institution from undergraduate and
graduate tuition and fees for the second year preceding the
year for which it is applying for an allocation, and (ii) the
institution's enrollment for such second preceding year.
[(C) The standard living expense described in subparagraph
(A)(ii) is equal to 150 percent of the difference between the
income protection allowance for a family of five with one in
college and the income protection allowance for a family of six
with one in college for a single independent student.
[(D) The allowance for books and supplies described in
subparagraph (A)(iii) is equal to $600.
[(d) Reallocation of Excess Allocations.--(1) If institutions
return to the Secretary any portion of the sums allocated to
such institutions under this section for any fiscal year, the
Secretary shall reallot such excess to eligible institutions
which used at least 5 percent of the total amount of funds
granted to such institution under this section to compensate
students employed in tutoring in reading and family literacy
activities in the preceding fiscal year. Such excess funds
shall be reallotted to institutions which qualify under this
subsection on the same basis as excess eligible amounts are
allocated to institutions pursuant to subsection (b). Funds
received by institutions pursuant to this subsection shall be
used to compensate students employed in community service.
[(2) If, under paragraph (1) of this subsection, an
institution returns more than 10 percent of its allocation, the
institution's allocation for the next fiscal year shall be
reduced by the amount returned. The Secretary may waive this
paragraph for a specific institution if the Secretary finds
that enforcing this paragraph would be contrary to the interest
of the program.
[(e) Filing Deadlines.--The Secretary shall, from time to
time, set dates before which institutions must file
applications for allocations under this part.]
SEC. 442. ALLOCATION OF FUNDS.
(a) Reservations.--
(1) Reservation for improved institutions.--
(A) Amount of reservation for improved
institutions.--For a fiscal year in which the
amount appropriated under section 441(b)
exceeds $700,000,000, the Secretary shall--
(i) reserve the lesser of--
(I) an amount equal to 20
percent of the amount by which
the amount appropriated under
section 441(b) exceeds
$700,000,000; or
(II) $150,000,000; and
(ii) allocate the amount reserved
under clause (i) to each improved
institution in an amount--
(I) that bears the same
proportion to the amount
reserved under clause (i) as
the total amount of all Federal
Pell Grant funds awarded at the
improved institution for the
second preceding fiscal year
bears to the total amount of
Federal Pell Grant funds
awarded at improved
institutions participating
under this part for the second
preceding fiscal year; and
(II) is not--
(aa) less than
$10,000; or
(bb) greater than
$1,500,000.
(B) Improved institution described.--For
purposes of this paragraph, an improved
institution is an institution that, on the date
the Secretary makes an allocation under
subparagraph (A)(ii) is, with respect to--
(i) the completion rate or graduation
rate of Federal Pell Grant recipients
at the institution, in the top 10
percent of--
(I) if the institution is an
institution described in any of
clauses (iv) through (ix) of
section 132(d)(1)(B), all such
institutions participating
under this part for the
preceding fiscal year; or
(II) if the institution is an
institution described in any of
clauses (i) through (iii) of
section 132(d)(1)(B), all such
institutions participating
under this part for the
preceding fiscal year; or
(ii) the improvement of the
completion rate or graduation rate
between the preceding fiscal year and
such date, in the top 10 percent of the
institutions described in clause (i).
(C) Completion rate or graduation rate.--For
purposes of determining the completion rate or
graduation rate under this section, a Federal
Pell Grant recipient shall be counted as a
completor or graduate if, within the normal
time for completion of or graduation from the
program, the student has completed or graduated
from the program, or enrolled in any program of
an institution participating in any program
under this title for which the prior program
provides substantial preparation.
(D) Reallocation of returned amount.--If an
institution returns to the Secretary any
portion of the sums allocated to such
institution under this paragraph for any fiscal
year, the Secretary shall reallot such excess
to improved institutions on the same basis as
under subparagraph (A)(ii)(I).
(2) Reservation for work colleges.--From the amounts
appropriated under section 441(b), the Secretary shall
reserve to carry out section 448 such amounts as may be
necessary for fiscal year 2019 and each of the 5
succeeding fiscal years.
(b) Allocation Formula for Fiscal Years 2019 Through 2023.--
(1) In general.--From the amount appropriated under
section 441(b) for a fiscal year and remaining after
the Secretary reserves funds under subsection (a), the
Secretary shall allocate to each institution--
(A) for fiscal year 2019, an amount equal to
the greater of--
(i) 90 percent of the amount the
institution received under this
subsection and subsection (a) for
fiscal year 2018, as such subsections
were in effect with respect to such
fiscal year (in this subparagraph
referred to as the ``2018 amount for
the institution''); or
(ii) the fair share amount for the
institution determined under subsection
(d);
(B) for fiscal year 2020, an amount equal to
the greater of--
(i) 80 percent of the 2018 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(d);
(C) for fiscal year 2021, an amount equal to
the greater of--
(i) 60 percent of the 2018 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(d);
(D) for fiscal year 2022, an amount equal to
the greater of--
(i) 40 percent of the 2018 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(d); and
(E) for fiscal year 2023, an amount equal to
the greater of--
(i) 20 percent of the 2018 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(d).
(2) Ratable reduction.--
(A) In general.--If the amount appropriated
under section 441(b) for a fiscal year and
remaining after the Secretary reserves funds
under subsection (a) is less than the amount
required to be allocated to the institutions
under this subsection, then the amount of the
allocation to each institution shall be ratably
reduced.
(B) Additional appropriations.--If the
amounts allocated to each institution are
ratably reduced under subparagraph (A) for a
fiscal year and additional amounts are
appropriated for such fiscal year, the amount
allocated to each institution from the
additional amounts shall be increased on the
same basis as the amounts under subparagraph
(A) were reduced (until each institution
receives the amount required to be allocated
under this subsection).
(c) Allocation Formula for Fiscal Year 2024 and Each
Succeeding Fiscal Year.--From the amount appropriated under
section 441(b) for fiscal year 2024 and each succeeding fiscal
year and remaining after the Secretary reserves funds under
subsection (a), the Secretary shall allocate to each
institution the fair share amount for the institution
determined under subsection (d).
(d) Determination of Fair Share Amount.--
(1) In general.--The fair share amount for an
institution for a fiscal year shall be equal to the sum
of the following:
(A) An amount equal to 50 percent of the
amount that bears the same proportion to the
available appropriated amount for such fiscal
year as the total amount of Federal Pell Grant
funds disbursed at the institution for the
preceding fiscal year bears to the total amount
of Federal Pell Grant funds awarded at all
institutions participating under this part for
the preceding fiscal year.
(B) An amount equal to 50 percent of the
amount that bears the same proportion to the
available appropriated amount for such fiscal
year as the total amount of the undergraduate
student need at the institution for the
preceding fiscal year bears to the total amount
of undergraduate student need at all
institutions participating under this part for
the preceding fiscal year.
(2) Definitions.--In this subsection:
(A) Available appropriated amount.--The term
``available appropriated amount'' means--
(i) the amount appropriated under
section 441(b) for a fiscal year, minus
(ii) the amounts reserved under
subsection (a) for such fiscal year.
(B) Average cost of attendance.--The term
``average cost of attendance'' means, with
respect to an institution, the average of the
attendance costs for a fiscal year for students
which shall include--
(i) tuition and fees, computed on the
basis of information reported by the
institution to the Secretary, which
shall include--
(I) total revenue received by
the institution from
undergraduate tuition and fees
for the second year preceding
the year for which it is
applying for an allocation; and
(II) the institution's
enrollment for such second
preceding year;
(ii) standard living expenses equal
to 150 percent of the difference
between the income protection allowance
for a family of 5 with 1 in college and
the income protection allowance for a
family of 6 with 1 in college for a
single independent student; and
(iii) books and supplies, in an
amount not exceeding $800.
(C) Undergraduate student need.--The term
``undergraduate student need'' means, with
respect to an undergraduate student for a
fiscal year, the lesser of the following:
(i) The total of the amount equal to
(except the amount computed by this
clause shall not be less than zero)--
(I) the average cost of
attendance for the fiscal year,
minus
(II) the total amount of each
such undergraduate student's
expected family contribution
(computed in accordance with
part F of this title) for the
preceding fiscal year.
(ii) $12,500.
(e) Return of Surplus Allocated Funds.--
(1) Amount returned.--If an institution returns more
than 10 percent of its allocation under subsection (d),
the institution's allocation for the next fiscal year
shall be reduced by the amount returned.
(2) Waiver.--The Secretary may waive this paragraph
for a specific institution if the Secretary finds that
enforcing this paragraph would be contrary to the
interest of the program.
(f) Filing Deadlines.--The Secretary shall, from time to
time, set dates before which institutions must file
applications for allocations under this part.
SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
(a) Agreements Required.--The Secretary is authorized to
enter into agreements with institutions of higher education
under which the Secretary will make grants to such institutions
to assist in the operation of work-study programs as provided
in this part.
(b) Contents of Agreements.--An agreement entered into
pursuant to this section shall--
(1) provide for the operation by the institution of a
program for the [part-time] employment, including
internships, practica, or research assistantships as
determined by the Secretary, of its students in work
for the institution itself, work in community service
or work in the public interest for a Federal, State, or
local public agency or private nonprofit organization
under an arrangement between the institution and such
agency or organization, and such work--
(A) will not result in the displacement of
employed workers or impair existing contracts
for services;
(B) will be governed by such conditions of
employment as will be appropriate and
reasonable in light of such factors as type of
work performed, geographical region, and
proficiency of the employee;
(C) does not involve the construction,
operation, or maintenance of so much of any
facility as is used or is to be used for
sectarian instruction or as a place for
religious worship; and
(D) will not pay any wage to students
employed under this subpart that is less than
the current Federal minimum wage as mandated by
section 6(a) of the Fair Labor Standards Act of
1938;
(2) provide that funds granted an institution of
higher education, pursuant to this section, may be used
only to make payments to students participating in
work-study programs, [except that--]
[(A) for fiscal year 2000 and succeeding
fiscal years, an institution shall use at least
7 percent of the total amount of funds granted
to such institution under this section for such
fiscal year to compensate students employed in
community service, and shall ensure that not
less than 1 tutoring or family literacy project
(as described in subsection (d)) is included in
meeting the requirement of this subparagraph,
except that the Secretary may waive this
subparagraph if the Secretary determines that
enforcing this subparagraph would cause
hardship for students at the institution; and]
[(B)] [an institution may use a portion]
except that an institution may use a portion of
the sums granted to it to meet administrative
expenses in accordance with section 489 of this
Act, may use a portion of the sums granted to
it to meet the cost of a job location and
development program in accordance with section
446 of this part, and may transfer funds in
accordance with the provisions of section 488
of this Act;
(3) provide that in the selection of students for
employment under such work-study program, only
undergraduate students who demonstrate financial need
in accordance with part F and meet the requirements of
section 484 will be assisted, except that if the
institution's grant under this part is directly or
indirectly based in part on the financial need
demonstrated by students who are (A) attending the
institution on less than a full-time basis, or (B)
independent students, a reasonable portion of the grant
shall be made available to such students;
(4) provide that for a student employed in a work-
study program under this part, at the time income
derived from any need-based employment is in excess of
the determination of the amount of such student's need
by more than $[300] 500, continued employment shall not
be subsidized with funds appropriated under this part;
(5) provide that the Federal share of the
compensation of students employed in the work-study
program in accordance with the agreement [shall not
exceed 75 percent] shall not exceed 75 percent in the
first year after the date of the enactment of PROSPER
Act, 65 percent in the first succeeding fiscal year, 60
percent in the second succeeding fiscal year, 55
percent in the third succeeding fiscal year, and 50
percent each succeeding fiscal year, except that--
[(A) the Federal share may exceed 75 percent,
but not exceed 90 percent, if, consistent with
regulations of the Secretary--
[(i) the student is employed at a
nonprofit private organization or a
government agency that--
[(I) is not a part of, and is
not owned, operated, or
controlled by, or under common
ownership, operation, or
control with, the institution;
[(II) is selected by the
institution on an individual
case-by-case basis for such
student; and
[(III) would otherwise be
unable to afford the costs of
such employment; and
[(ii) not more than 10 percent of the
students compensated through the
institution's grant under this part
during the academic year are employed
in positions for which the Federal
share exceeds 75 percent; and]
[(B)] (A) the Federal share may exceed [75]
50 percent if the Secretary determines,
pursuant to regulations promulgated by the
Secretary establishing objective criteria for
such determinations, that a Federal share in
excess of such amounts is required in
furtherance of the purpose of this part[;]; and
(B) the Federal share may equal 100 percent
with respect to funds received under section
442(a)(1)(A);
(6) include provisions to make employment under such
work-study program reasonably available (to the extent
of available funds) to all eligible students in the
institution in need thereof;
(7) provide assurances that employment made available
from funds under this part will, to the maximum extent
practicable, complement and reinforce the educational
program or vocational goals of each student receiving
assistance under this part;
(8) provide assurances, in the case of each
proprietary institution, that students attending the
proprietary institution receiving assistance under this
part who are employed by the institution may be
employed in jobs--
(A) that are only on campus and that--
(i) to the maximum extent
practicable, complement and reinforce
the education programs or [vocational]
career goals of such students; and
(ii) furnish student services that
are directly related to the student's
education, as determined by the
Secretary pursuant to regulations,
except that no student shall be
employed in any position that would
involve the solicitation of other
potential students to enroll in the
school; or
(B) in [community service] work-based
learning in accordance with paragraph (2)(A) of
this subsection;
(9) provide assurances that employment made available
from funds under this part may be used to support
programs for supportive services to students with
disabilities;
(10) provide assurances that the institution will
inform all eligible students of the opportunity to
perform community service, and will consult with local
nonprofit, governmental, and community-based
organizations to identify such opportunities[; and];
(11) include such other reasonable provisions as the
Secretary shall deem necessary or appropriate to carry
out the purpose of this part[.];
(12) provide assurances that the institution will
collect data from students and employers such that the
employment made available from funds under this part
will, to the maximum extent practicable, complement and
reinforce the educational goals or career goals of each
student receiving assistance under this part; and
(13) provide assurances that if the institution
receives funds under section 442(a)(1)(A), such
institution shall--
(A) use such funds to compensate students
participating in the work-study program; and
(B) prioritize the awarding of such funds to
students--
(i) who demonstrate exceptional need;
or
(ii) who are employed in work-based
learning opportunities through the
work-study program.
(c) Private Sector Employment Agreement.--As part of its
agreement described in subsection (b), an institution of higher
education may, at its option, enter into an additional
agreement with the Secretary which shall--
(1) provide for the operation by the institution of a
[program of part-time employment] program--
(A) of employment of its students in work
for a private for-profit organization under an
arrangement between the institution and such
organization that complies with the
requirements of subparagraphs (A) through (D)
of subsection (b)(1) and subsection (b)(3); or
(B) of full-time employment of its
cooperative education students in work for a
private for-profit organization under an
arrangement between the institution and such
organization that complies with the
requirements of subparagraphs (A) through (D)
of subsection (b)(1) of this section and
subsection (b)(4) of this section;
[(2) provide that the institution will use not more
than 25 percent of the funds made available to such
institution under this part for any fiscal year for the
operation of the program described in paragraph (1);]
[(3)] (2) provide that, notwithstanding subsection
(b)(5), the Federal share of the compensation of
students employed in such program will not exceed 60
percent for academic years 1987-1988 and 1988-1989, 55
percent for academic year 1989-1990, and 50 percent for
academic year 1990-1991 and succeeding academic years,
and that the non-Federal share of such compensation
will be provided by the private for-profit organization
in which the student is employed;
[(4)] (3) provide that jobs under the work study
program will be academically relevant and complement
and reinforce the educational goals or career goals of
each student receiving assistance under this part, to
the maximum extent practicable; and
[(5)] (4) provide that the for-profit organization
will not use funds made available under this part to
pay any employee who would otherwise be employed by the
organization.
(d) Tutoring and Literacy Activities.--
(1) Use of funds.--[In any academic year to which
subsection (b)(2)(A) applies, an institution shall
ensure that] An institution may use the funds granted
to such institution under this section [are used] in
accordance with such subsection to compensate
(including compensation for time spent in training and
travel directly related to tutoring in reading and
family literacy activities) students--
(A) employed as reading tutors for children
who are preschool age or are in elementary
school; or
(B) employed in family literacy projects.
(2) Priority for schools.--To the extent practicable,
an institution shall--
(A) give priority to the employment of
students in the provision of tutoring in
reading in schools that are participating in a
reading reform project that--
(i) is designed to train teachers how
to teach reading on the basis of
scientifically-based research on
reading; and
(ii) is funded under the Elementary
and Secondary Education Act of 1965;
and
(B) ensure that any student compensated with
the funds described in paragraph (1) who is
employed in a school participating in a reading
reform project described in subparagraph (A)
receives training from the employing school in
the instructional practices used by the school.
(3) Federal share.--The Federal share of the
compensation of work-study students compensated under
this subsection [may exceed 75 percent] shall not
exceed 50 percent.
(e) Civic Education and Participation Activities.--
(1) Use of funds.--Funds granted to an institution
under this section may be used to compensate (including
compensation for time spent in training and travel
directly related to civic education and participation
activities) students employed in projects that--
(A) teach civics in schools;
(B) raise awareness of government functions
or resources; or
(C) increase civic participation.
(2) Priority for schools.--To the extent practicable,
an institution shall--
(A) give priority to the employment of
students participating in projects that educate
or train the public about evacuation, emergency
response, and injury prevention strategies
relating to natural disasters, acts of
terrorism, and other emergency situations; and
(B) ensure that any student compensated with
the funds described in paragraph (1) receives
appropriate training to carry out the
educational services required.
(3) Federal share.--The Federal share of the
compensation of work-study students compensated under
this subsection may exceed 75 percent.
* * * * * * *
SEC. 445. FLEXIBLE USE OF FUNDS.
(a) Carry-Over Authority.--(1) Of the sums granted to an
eligible institution under this part for any fiscal year, 10
percent may, at the discretion of the institution, remain
available for expenditure during the succeeding fiscal year to
carry out programs under this part.
(2) Any of the sums so granted to an institution for a fiscal
year which are not needed by that institution to operate work-
study programs during that fiscal year, and which it does not
wish to use during the next fiscal year as authorized in the
preceding sentence, shall remain available to the Secretary for
making grants under section 443 to other institutions [in the
same State] described under section 442(a)(1)(B) until the
close of the second fiscal year next succeeding the fiscal year
for which such funds were appropriated.
(3) In addition to the carry-over sums authorized under
paragraph (1) of this section, an institution may permit a
student who completed the previous award period to continue to
earn unearned portions of the student's work-study award from
that previous year if--
(A) any reduction in the student's need upon which
the award was based is accounted for in the remaining
portion; and
(B) the student is currently employed in a work-based
learning position.
(b) Carry-Back Authority.--(1) Up to 10 percent of the sums
the Secretary determines an eligible institution may receive
from funds which have been appropriated for a fiscal year may
be used by the Secretary to make grants under this part to such
institution for expenditure during the fiscal year preceding
the fiscal year for which the sums were appropriated.
(2) An eligible institution may make payments to students of
wages earned after the end of the academic year, but prior to
the beginning of the succeeding fiscal year, from such
succeeding fiscal year's appropriations.
(c) Flexible Use of Funds.--An eligible institution may, upon
the request of a student, make payments to the student under
this part by crediting the student's account at the institution
or by making a direct deposit to the student's account at a
depository institution. An eligible institution may only credit
the student's account at the institution for (1) tuition and
fees, (2) in the case of institutionally owned housing, room
and board, and (3) other institutionally provided goods and
services.
(d) Flexibility in the Event of a Major Disaster.--
(1) In general.--In the event of a major disaster, an
eligible institution located in any area affected by
such major disaster, as determined by the Secretary,
may make payments under this part to disaster-affected
students, for the period of time (not to exceed one
academic year) in which the disaster-affected students
were prevented from fulfilling the students' work-study
obligations as described in paragraph (2)(A)(iii), as
follows:
(A) Payments may be made under this part to
disaster-affected students in an amount equal
to or less than the amount of wages such
students would have been paid under this part
had the students been able to complete the work
obligation necessary to receive work study
funds.
(B) Payments shall not be made to any student
who was not eligible for work study or was not
completing the work obligation necessary to
receive work study funds under this part prior
to the occurrence of the major disaster.
(C) Any payments made to disaster-affected
students under this subsection shall meet the
matching requirements of section 443, unless
such matching requirements are waived by the
Secretary.
(2) Definitions.--In this subsection:
(A) The term ``disaster-affected student''
means a student enrolled at an eligible
institution who--
(i) received a work-study award under
this section for the academic year
during which a major disaster occurred;
(ii) earned Federal work-study wages
from such eligible institution for such
academic year;
(iii) was prevented from fulfilling
the student's work-study obligation for
all or part of such academic year due
to such major disaster; and
(iv) was unable to be reassigned to
another work-study job.
(B) The term ``major disaster'' has the
meaning given such term in section 102(2) of
the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122(2)).
SEC. 446. JOB LOCATION AND DEVELOPMENT PROGRAMS.
(a) Agreements Required.--(1) The Secretary is authorized to
enter into agreements with eligible institutions under which
such institution may use not more than [10 percent or $75,000]
20 percent or $150,000 of its allotment under section 442,
whichever is less, to establish or expand a program under which
such institution, separately or in combination with other
eligible institutions, locates and develops jobs[, including
community service jobs,] for currently enrolled students.
(2) Jobs located and developed under this section shall be
jobs that are suitable to the scheduling and other needs of
such students and that, to the maximum extent practicable,
complement and reinforce the educational programs or
[vocational] career goals of such students.
(3) An institution may use a portion of the funds expended
under this section to identify and expand opportunities for
apprenticeships for students and to assist employers in
developing jobs that are part of apprenticeship programs.
(b) Contents of Agreements.--Agreements under subsection (a)
shall--
(1) provide that the Federal share of the cost of any
program under this section will not exceed 80 percent
of such cost;
[(2) provide satisfactory assurance that funds
available under this section will not be used to locate
or develop jobs at an eligible institution;]
(2) provide satisfactory assurance that the
institution will prioritize placing students with the
lowest expected family contribution and Federal work-
study recipients in jobs located and developed under
this section;
(3) provide a satisfactory assurance that the
institution will locate and develop work-based learning
opportunities through the job location development
programs;
[(3)] (4) provide satisfactory assurance that funds
available under this section will not be used for the
location or development of jobs for students to obtain
upon graduation, but rather for the location and
development of jobs available to students during and
between periods of attendance at such institution;
[(4)] (5) provide satisfactory assurance that the
location or development of jobs pursuant to programs
assisted under this section will not result in the
displacement of employed workers or impair existing
contracts for services;
[(5)] (6) provide satisfactory assurance that Federal
funds used for the purpose of this section can
realistically be expected to help generate student
wages exceeding, in the aggregate, the amount of such
funds, and that if such funds are used to contract with
another organization, appropriate performance standards
are part of such contract; and
[(6)] (7) provide that the institution will submit to
the Secretary an annual report on the uses made of
funds provided under this section and an evaluation of
the effectiveness of such program in benefiting the
students of such institution[.], including--
(A) the number of students employed in work-
based learning opportunities through such
program;
(B) the number of students demonstrating
exceptional need and employed in a work-study
program through such program; and
(C) the number of students demonstrating
exceptional need and employed in work-based
learning opportunities through such program.
[SEC. 447. ADDITIONAL FUNDS TO CONDUCT COMMUNITY SERVICE WORK-STUDY
PROGRAMS.
[(a) Community Service-Learning.--Each institution
participating under this part may use up to 10 percent of the
funds made available under section 489(a) and attributable to
the amount of the institution's expenditures under this part to
conduct that institution's program of community service-
learning, including--
[(1) development of mechanisms to assure the academic
quality of the student experience,
[(2) assuring student access to educational
resources, expertise, and supervision necessary to
achieve community service objectives, and
[(3) collaboration with public and private nonprofit
agencies, and programs assisted under the National and
Community Service Act of 1990 in the planning,
development, and administration of such programs.
[(b) Off-Campus Community Service.--
[(1) Grants authorized.--In addition to funds made
available under section 443(b)(2)(A), the Secretary is
authorized to award grants to institutions
participating under this part to supplement off-campus
community service employment.
[(2) Use of funds.--An institution shall ensure that
funds granted to such institution under this subsection
are used in accordance with section 443(b)(2)(A) to
recruit and compensate students (including compensation
for time spent in training and for travel directly
related to such community service).
[(3) Priority.--In awarding grants under this
subsection, the Secretary shall give priority to
applications that support postsecondary students
assisting with early childhood education activities and
activities in preparation for emergencies and natural
disasters.
[(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection such sums as may be necessary for fiscal
year 2009 and each of the five succeeding fiscal
years.]
SEC. 448. WORK COLLEGES.
(a) Purpose.--The purpose of this section is to recognize,
encourage, and promote the use of comprehensive work-learning-
service programs as a valuable educational approach when it is
an integral part of the institution's educational program and a
part of a financial plan which decreases reliance on grants and
loans.
(b) Source and Use Funds.--
(1) Source of funds.--In addition to the sums
[appropriated] allocated under subsection (f), funds
allocated to the institution under part C [and part E]
of this title may be transferred for use under this
section to provide flexibility in strengthening the
self-help-through-work element in financial aid
packaging.
(2) Activities authorized.--From the sums
[appropriated pursuant to] allocated under subsection
(f), and from the funds available under paragraph (1),
eligible institutions may, following approval of an
application under subsection (c) by the Secretary--
(A) support the educational costs of
qualified students through self-help payments
or credits provided under the work-learning-
service program of the institution within the
limits of part F of this title;
(B) promote the work-learning-service
experience as a tool of postsecondary
education, financial self-help and community
service-learning opportunities;
(C) carry out activities described in section
443 or 446;
(D) be used for the administration,
development and assessment of comprehensive
work-learning-service programs, including--
(i) community-based work-learning-
service alternatives that expand
opportunities for community service and
career-related work; and
(ii) alternatives that develop sound
citizenship, encourage student
persistence, and make optimum use of
assistance under this part in education
and student development;
(E) coordinate and carry out joint projects
and activities to promote work service
learning; and
(F) carry out a comprehensive, longitudinal
study of student academic progress and academic
and career outcomes, relative to student self-
sufficiency in financing their higher
education, repayment of student loans,
continued community service, kind and quality
of service performed, and career choice and
community service selected after graduation.
(c) Application.--Each eligible institution may submit an
application for funds [authorized by] allocated under
subsection (f) to use funds under subsection (b)(1) at such
time and in such manner as the Secretary, by regulation, may
reasonably require.
(d) Match Required.--Funds made available to work-colleges
pursuant to this section shall be matched on a dollar-for-
dollar basis from non-Federal sources.
(e) Definitions.--For the purpose of this section--
(1) the term ``work college'' means an eligible
institution that--
(A) has been a public or private nonprofit,
four-year, degree-granting institution with a
commitment to community service;
(B) has operated a comprehensive work-
learning-service program for at least two
years;
(C) requires students, including at least
one-half of all students who are enrolled on a
full-time basis, to participate in a
comprehensive work-learning-service program for
at least five hours each week, or at least 80
hours during each period of enrollment, except
summer school, unless the student is engaged in
an institutionally organized or approved study
abroad or externship program[; and];
(D) provides students participating in the
comprehensive work-learning-service program
with the opportunity to contribute to their
education and to the welfare of the community
as a whole; and
(E) has administered Federal work-study for
at least 2 years; and
(2) the term ``comprehensive student work-learning-
service program'' means a student work-learning-service
program that--
(A) is an integral and stated part of the
institution's educational philosophy and
program;
(B) requires participation of all resident
students for enrollment and graduation;
(C) includes learning objectives, evaluation,
and a record of work performance as part of the
student's college record;
(D) provides programmatic leadership by
college personnel at levels comparable to
traditional academic programs;
(E) recognizes the educational role of work-
learning-service supervisors; and
(F) includes consequences for nonperformance
or failure in the work-learning-service program
similar to the consequences for failure in the
regular academic program.
[(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.]
(f) Allocation of Reserved Funds.--
(1) In general.--Subject to paragraph (2), from the
amount reserved under section 442(a)(2) for a fiscal
year to carry out this section, the Secretary shall
allocate to each work college that submits an
application under subsection (c) an amount equal to the
amount that bears the same proportion to the amount
appropriated for such fiscal year as the number of
students eligible for employment under a work-study
program under this part who are enrolled at the work
college bears to the total number of students eligible
for employment under a work-study program under this
part who are enrolled at all work colleges.
(2) Reallotment of unmatched funds.--If a work
college is unable to match funds received under
paragraph (1) in accordance with subsection (d), any
unmatched funds shall be returned to the Secretary and
the Secretary shall reallot such funds on the same
basis as funds are allocated under paragraph (1).
PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
SEC. 451. PROGRAM AUTHORITY.
(a) In General.--There are hereby made available, in
accordance with the provisions of this part, such sums as may
be necessary (1) to make loans to all eligible students (and
the eligible parents of such students) in attendance at
participating institutions of higher education selected by the
Secretary, to enable such students to pursue their courses of
study at such institutions during the period beginning July 1,
1994; and (2) for purchasing loans under section 459A. Loans
made under this part shall be made by participating
institutions, or consortia thereof, that have agreements with
the Secretary to originate loans, or by alternative originators
designated by the Secretary to make loans for students in
attendance at participating institutions (and their parents).
No sums may be expended after September 30, 2024, with respect
to loans under this part for which the first disbursement is
after such date.
(b) Designation.--
(1) Program.--The program established under this part
shall be referred to as the ``William D. Ford Federal
Direct Loan Program''.
(2) Direct loans.--Notwithstanding any other
provision of this part, loans made to borrowers under
this part that, except as otherwise specified in this
part, have the same terms, conditions, and benefits as
loans made to borrowers under section 428, shall be
known as ``Federal Direct Stafford/Ford Loans''.
(c) Termination of Authority to Make New Loans.--
Notwithstanding subsection (a) or any other provision of law--
(1) no new loans may be made under this part after
September 30, 2024; and
(2) no funds are authorized to be appropriated, or
may be expended, under this Act, or any other Act to
make loans under this part for which the first
disbursement is after September 30, 2024,
except as expressly authorized by an Act of Congress enacted
after the date of enactment of the PROSPER Act.
(d) Student Eligibility Beginning With Award Year 2019.--
(1) New borrowers.--No loan may be made under this
part to a new borrower for which the first disbursement
is after June 30, 2019.
(2) Borrowers with outstanding balances.--Subject to
paragraph (3), with respect to a borrower who, as of
July 1, 2019, has an outstanding balance of principal
or interest owing on a loan made under this part, such
borrower may--
(A) in the case of such a loan made to the
borrower for enrollment in a program of
undergraduate education, borrow loans made
under this part for any program of
undergraduate education through the close of
September 30, 2024;
(B) in the case of such a loan made to the
borrower for enrollment in a program of
graduate or professional education, borrow
loans made under this part for any program of
graduate or professional education through the
close of September 30, 2024; and
(C) in the case of such a loan made to the
borrower on behalf of a dependent student for
the student's enrollment in a program of
undergraduate education, borrow loans made
under this part on behalf of such student
through the close of September 30, 2024.
(3) Loss of eligibility.--A borrower described in
paragraph (2) who borrows a loan made under part E for
which the first disbursement is made on or after July
1, 2019, shall lose the borrower's eligibility to
borrow loans made under this part in accordance with
paragraph (2).
* * * * * * *
SEC. 453. SELECTION OF INSTITUTIONS FOR PARTICIPATION AND ORIGINATION.
(a) General Authority.--The Secretary shall enter into
agreements pursuant to section 454(a) with institutions of
higher education to participate in the direct student loan
program under this part, and agreements pursuant to section
454(b) with institutions of higher education, or consortia
thereof, to originate loans in such program, for academic years
beginning on or after July 1, 1994. Alternative origination
services, through which an entity other than the participating
institution at which the student is in attendance originates
the loan, shall be provided by the Secretary, through 1 or more
contracts under section 456(b) or such other means as the
Secretary may provide, for students attending participating
institutions that do not originate direct student loans under
this part. Such agreements for the academic year 1994-1995
shall, to the extent feasible, be entered into not later than
January 1, 1994.
(b) Selection Criteria.--
(1) Application.--Each institution of higher
education desiring to participate in the direct student
loan program under this part shall submit an
application satisfactory to the Secretary containing
such information and assurances as the Secretary may
require.
(2) Selection procedure.--The Secretary shall select
institutions for participation in the direct student
loan program under this part, and shall enter into
agreements with such institutions under section 454(a),
from among those institutions that submit the
applications described in paragraph (1), and meet such
other eligibility requirements as the Secretary shall
prescribe.
(c) Selection Criteria for Origination.--
(1) In general.--The Secretary may enter into a
supplemental agreement with an institution (or a
consortium of such institutions) that--
(A) has an agreement under subsection 454(a);
(B) desires to originate loans under this
part; and
(C) meets the criteria described in paragraph
(2).
(2) Selection criteria.--The Secretary may approve an
institution to originate loans only if such
institution--
(A) is not on the reimbursement system of
payment for any of the programs under subpart 1
or 3 of part A, part C, or part E, as in effect
on the day before the date of enactment of the
PROSPER Act and pursuant to section 461(a), of
this title;
(B) is not overdue on program or financial
reports or audits required under this title;
(C) is not subject to an emergency action, or
a limitation, suspension, or termination under
section 428(b)(1)(T), 432(h), or 487(c);
(D) in the opinion of the Secretary, has not
had severe performance deficiencies for any of
the programs under this title, including such
deficiencies demonstrated by audits or program
reviews submitted or conducted during the 5
calendar years immediately preceding the date
of application;
(E) provides an assurance that such
institution has no delinquent outstanding debts
to the Federal Government, unless such debts
are being repaid under or in accordance with a
repayment arrangement satisfactory to the
Federal Government, or the Secretary in the
Secretary's discretion determines that the
existence or amount of such debts has not been
finally determined by the cognizant Federal
agency; and
(F) meets such other criteria as the
Secretary may establish to protect the
financial interest of the United States and to
promote the purposes of this part.
(d) Eligible Institutions.--The Secretary may not select an
institution of higher education for participation under this
section unless such institution is an eligible institution
under section 435(a).
(e) Consortia.--Subject to such requirements as the Secretary
may prescribe, eligible institutions of higher education (as
determined under subsection (d)) with agreements under section
454(a) may apply to the Secretary as consortia to originate
loans under this part for students in attendance at such
institutions. Each such institution shall be required to meet
the requirements of subsection (c) with respect to loan
origination.
* * * * * * *
SEC. 455. TERMS AND CONDITIONS OF LOANS.
(a) In General.--
(1) Parallel terms, conditions, benefits, and
amounts.--Unless otherwise specified in this part,
loans made to borrowers under this part, and first
disbursed before October 1, 2024, shall have the same
terms, conditions, and benefits, and be available in
the same amounts, as loans made to borrowers, and first
disbursed on June 30, 2010, under sections 428, 428B,
428C, and 428H of this title.
(2) Designation of loans.--Loans made to borrowers
under this part, and first disbursed before October 1,
2024, that, except as otherwise specified in this part,
have the same terms, conditions, and benefits as loans
made to borrowers under--
(A) section 428 shall be known as ``Federal
Direct Stafford Loans'';
(B) section 428B shall be known as ``Federal
Direct PLUS Loans'';
(C) section 428C shall be known as ``Federal
Direct Consolidation Loans''; and
(D) section 428H shall be known as ``Federal
Direct Unsubsidized Stafford Loans''.
(3) Termination of authority to make interest
subsidized loans to graduate and professional
students.--
(A) In general.--Subject to subparagraph (B)
and notwithstanding any provision of this part
or part B, for any period of instruction
beginning on or after July 1, 2012--
(i) a graduate or professional
student shall not be eligible to
receive a Federal Direct Stafford loan
under this part; and
(ii) the maximum annual amount of
Federal Direct Unsubsidized Stafford
loans such a student may borrow in any
academic year (as defined in section
481(a)(2)) or its equivalent shall be
the maximum annual amount for such
student determined under section 428H,
plus an amount equal to the amount of
Federal Direct Stafford loans the
student would have received in the
absence of this subparagraph.
(B) Exception.--Subparagraph (A) shall not
apply to an individual enrolled in course work
specified in paragraph (3)(B) or (4)(B) of
section 484(b).
(b) Interest Rate.--
(1) Rates for fdsl and fdusl.--For Federal Direct
Stafford Loans and Federal Direct Unsubsidized Stafford
Loans for which the first disbursement is made on or
after July 1, 1994, the applicable rate of interest
shall, during any 12-month period beginning on July 1
and ending on June 30, be determined on the preceding
June 1 and be equal to--
(A) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction
held prior to such June 1; plus
(B) 3.1 percent,
except that such rate shall not exceed 8.25 percent.
(2) In school and grace period rules.--(A)
Notwithstanding the provisions of paragraph (1), but
subject to paragraph (3), with respect to any Federal
Direct Stafford Loan or Federal Direct Unsubsidized
Stafford Loan for which the first disbursement is made
on or after July 1, 1995, the applicable rate of
interest for interest which accrues--
(i) prior to the beginning of the repayment
period of the loan; or
(ii) during the period in which principal
need not be paid (whether or not such principal
is in fact paid) by reason of a provision
described in section 428(b)(1)(M) or
427(a)(2)(C),
shall not exceed the rate determined under subparagraph
(B).
(B) For the purpose of subparagraph (A), the rate
determined under this subparagraph shall, during any
12-month period beginning on July 1 and ending on June
30, be determined on the preceding June 1 and be equal
to--
(i) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction
prior to such June 1; plus
(ii) 2.5 percent,
except that such rate shall not exceed 8.25 percent.
(3) Out-year rule.--Notwithstanding paragraphs (1)
and (2), for Federal Direct Stafford Loans and Federal
Direct Unsubsidized Stafford Loans made on or after
July 1, 1998, the applicable rate of interest shall,
during any 12-month period beginning on July 1 and
ending on June 30, be determined on the preceding June
1 and be equal to--
(A) the bond equivalent rate of the security
with a comparable maturity as established by
the Secretary; plus
(B) 1.0 percent,
except that such rate shall not exceed 8.25 percent.
(4) Rates for fdplus.--
(A)(i) For Federal Direct PLUS Loans for
which the first disbursement is made on or
after July 1, 1994, the applicable rate of
interest shall, during any 12-month period
beginning on July 1 and ending on or before
June 30, 2001, be determined on the preceding
June 1 and be equal to--
(I) the bond equivalent rate of 52-
week Treasury bills auctioned at final
auction held prior to such June 1; plus
(II) 3.1 percent,
except that such rate shall not exceed 9
percent.
(ii) For any 12-month period beginning on
July 1 of 2001 or any succeeding year, the
applicable rate of interest determined under
this subparagraph shall be determined on the
preceding June 26 and be equal to--
(I) the weekly average 1-year
constant maturity Treasury yield, as
published by the Board of Governors of
the Federal Reserve System, for the
last calendar week ending on or before
such June 26; plus
(II) 3.1 percent,
except that such rate shall not exceed 9
percent.
(B) For Federal Direct PLUS loans made on or after
July 1, 1998, the applicable rate of interest shall,
during any 12-month period beginning on July 1 and
ending on June 30, be determined on the preceding June
1 and be equal to--
(i) the bond equivalent rate of the security
with a comparable maturity as established by
the Secretary; plus
(ii) 2.1 percent,
except that such rate shall not exceed 9 percent.
(5) Temporary interest rate provision.--
(A) Rates for fdsl and fdusl.--
Notwithstanding the preceding paragraphs of
this subsection, for Federal Direct Stafford
Loans and Federal Direct Unsubsidized Stafford
Loans for which the first disbursement is made
on or after July 1, 1998, and before October 1,
1998, the applicable rate of interest shall,
during any 12-month period beginning on July 1
and ending on June 30, be determined on the
preceding June 1 and be equal to--
(i) the bond equivalent rate of 91-
day Treasury bills auctioned at the
final auction held prior to such June
1; plus
(ii) 2.3 percent,
except that such rate shall not exceed 8.25
percent.
(B) In school and grace period rules.--
Notwithstanding the preceding paragraphs of
this subsection, with respect to any Federal
Direct Stafford Loan or Federal Direct
Unsubsidized Stafford Loan for which the first
disbursement is made on or after July 1, 1998,
and before October 1, 1998, the applicable rate
of interest for interest which accrues--
(i) prior to the beginning of the
repayment period of the loan; or
(ii) during the period in which
principal need not be paid (whether or
not such principal is in fact paid) by
reason of a provision described in
section 428(b)(1)(M) or 427(a)(2)(C),
shall be determined under subparagraph (A) by
substituting ``1.7 percent'' for ``2.3
percent''.
(C) PLUS loans.--Notwithstanding the
preceding paragraphs of this subsection, with
respect to Federal Direct PLUS Loan for which
the first disbursement is made on or after July
1, 1998, and before October 1, 1998, the
applicable rate of interest shall be determined
under subparagraph (A)--
(i) by substituting ``3.1 percent''
for ``2.3 percent''; and
(ii) by substituting ``9.0 percent''
for ``8.25 percent''.
(6) Interest rate provision for new loans on or after
october 1, 1998, and before july 1, 2006.--
(A) Rates for fdsl and fdusl.--
Notwithstanding the preceding paragraphs of
this subsection, for Federal Direct Stafford
Loans and Federal Direct Unsubsidized Stafford
Loans for which the first disbursement is made
on or after October 1, 1998, and before July 1,
2006, the applicable rate of interest shall,
during any 12-month period beginning on July 1
and ending on June 30, be determined on the
preceding June 1 and be equal to--
(i) the bond equivalent rate of 91-
day Treasury bills auctioned at the
final auction held prior to such June
1; plus
(ii) 2.3 percent,
except that such rate shall not exceed 8.25
percent.
(B) In school and grace period rules.--
Notwithstanding the preceding paragraphs of
this subsection, with respect to any Federal
Direct Stafford Loan or Federal Direct
Unsubsidized Stafford Loan for which the first
disbursement is made on or after October 1,
1998, and before July 1, 2006, the applicable
rate of interest for interest which accrues--
(i) prior to the beginning of the
repayment period of the loan; or
(ii) during the period in which
principal need not be paid (whether or
not such principal is in fact paid) by
reason of a provision described in
section 428(b)(1)(M) or 427(a)(2)(C),
shall be determined under subparagraph (A) by
substituting ``1.7 percent'' for ``2.3
percent''.
(C) PLUS loans.--Notwithstanding the
preceding paragraphs of this subsection, with
respect to Federal Direct PLUS Loan for which
the first disbursement is made on or after
October 1, 1998, and before July 1, 2006, the
applicable rate of interest shall be determined
under subparagraph (A)--
(i) by substituting ``3.1 percent''
for ``2.3 percent''; and
(ii) by substituting ``9.0 percent''
for ``8.25 percent''.
(D) Consolidation loans.--Notwithstanding the
preceding paragraphs of this subsection, any
Federal Direct Consolidation loan for which the
application is received on or after February 1,
1999, and before July 1, 2006, shall bear
interest at an annual rate on the unpaid
principal balance of the loan that is equal to
the lesser of--
(i) the weighted average of the
interest rates on the loans
consolidated, rounded to the nearest
higher one-eighth of one percent; or
(ii) 8.25 percent.
(E) Temporary rules for consolidation
loans.--Notwithstanding the preceding
paragraphs of this subsection, any Federal
Direct Consolidation loan for which the
application is received on or after October 1,
1998, and before February 1, 1999, shall bear
interest at an annual rate on the unpaid
principal balance of the loan that is equal
to--
(i) the bond equivalent rate of 91-
day Treasury bills auctioned at the
final auction held prior to such June
1; plus
(ii) 2.3 percent,
except that such rate shall not exceed 8.25
percent.
(7) Interest rate provision for new loans on or after
july 1, 2006 and before july 1, 2013.--
(A) Rates for fdsl and fdusl.--
Notwithstanding the preceding paragraphs of
this subsection, for Federal Direct Stafford
Loans and Federal Direct Unsubsidized Stafford
Loans for which the first disbursement is made
on or after July 1, 2006, and before July 1,
2013, the applicable rate of interest shall be
6.8 percent on the unpaid principal balance of
the loan.
(B) PLUS loans.--Notwithstanding the
preceding paragraphs of this subsection, with
respect to any Federal Direct PLUS loan for
which the first disbursement is made on or
after July 1, 2006, and before July 1, 2013,
the applicable rate of interest shall be 7.9
percent on the unpaid principal balance of the
loan.
(C) Consolidation loans.--Notwithstanding the
preceding paragraphs of this subsection, any
Federal Direct Consolidation loan for which the
application is received on or after July 1,
2006, and before July 1, 2013, shall bear
interest at an annual rate on the unpaid
principal balance of the loan that is equal to
the lesser of--
(i) the weighted average of the
interest rates on the loans
consolidated, rounded to the nearest
higher one-eighth of one percent; or
(ii) 8.25 percent.
(D) Reduced rates for undergraduate fdsl.--
Notwithstanding 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, 2013, 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, 2013, 3.4
percent on the unpaid principal balance
of the loan.
(8) Interest rate provisions for new loans on or
after july 1, 2013 and before october 1, 2024.--
(A) Rates for undergraduate fdsl and fdusl.--
Notwithstanding the preceding paragraphs of
this subsection, for Federal Direct Stafford
Loans and Federal Direct Unsubsidized Stafford
Loans issued to undergraduate students, for
which the first disbursement is made on or
after July 1, 2013, and before October 1, 2024,
the applicable rate of interest shall, for
loans disbursed during any 12-month period
beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal
to the lesser of--
(i) a rate equal to the high yield of
the 10-year Treasury note auctioned at
the final auction held prior to such
June 1 plus 2.05 percent; or
(ii) 8.25 percent.
(B) Rates for graduate and professional
fdusl.--Notwithstanding the preceding
paragraphs of this subsection, for Federal
Direct Unsubsidized Stafford Loans issued to
graduate or professional students, for which
the first disbursement is made on or after July
1, 2013, and before October 1, 2024, the
applicable rate of interest shall, for loans
disbursed during any 12-month period beginning
on July 1 and ending on June 30, be determined
on the preceding June 1 and be equal to the
lesser of--
(i) a rate equal to the high yield of
the 10-year Treasury note auctioned at
the final auction held prior to such
June 1 plus 3.6 percent; or
(ii) 9.5 percent.
(C) PLUS loans.--Notwithstanding the
preceding paragraphs of this subsection, for
Federal Direct PLUS Loans, for which the first
disbursement is made on or after July 1, 2013,
and before October 1, 2024, the applicable rate
of interest shall, for loans disbursed during
any 12-month period beginning on July 1 and
ending on June 30, be determined on the
preceding June 1 and be equal to the lesser
of--
(i) a rate equal to the high yield of
the 10-year Treasury note auctioned at
the final auction held prior to such
June 1 plus 4.6 percent; or
(ii) 10.5 percent.
(D) Consolidation loans.--Notwithstanding the
preceding paragraphs of this subsection, any
Federal Direct Consolidation Loan for which the
application is received on or after July 1,
2013, and before October 1, 2024, shall bear
interest at an annual rate on the unpaid
principal balance of the loan that is equal to
the weighted average of the interest rates on
the loans consolidated, rounded to the nearest
higher one-eighth of one percent.
(E) Consultation.--The Secretary shall
determine the applicable rate of interest under
this paragraph after consultation with the
Secretary of the Treasury and shall publish
such rate in the Federal Register as soon as
practicable after the date of determination.
(F) Rate.--The applicable rate of interest
determined under this paragraph for a Federal
Direct Stafford Loan, a Federal Direct
Unsubsidized Stafford Loan, or a Federal Direct
PLUS Loan shall be fixed for the period of the
loan.
(9) Repayment incentives.--
(A)(A) Incentives for loans disbursed before
july 1, 2012.--Notwithstanding any other
provision of this part with respect to loans
for which the first disbursement of principal
is made before July 1, 2012,, the Secretary is
authorized to prescribe by regulation such
reductions in the interest or origination fee
rate paid by a borrower of a loan made under
this part as the Secretary determines
appropriate to encourage on-time repayment of
the loan. Such reductions may be offered only
if the Secretary determines the reductions are
cost neutral and in the best financial interest
of the Federal Government. Any increase in
subsidy costs resulting from such reductions
shall be completely offset by corresponding
savings in funds available for the William D.
Ford Federal Direct Loan Program in that fiscal
year from section 458 and other administrative
accounts.
(B) Accountability.--Prior to publishing
regulations proposing repayment incentives with
respect to loans for which the first
disbursement of principal is made before July
1, 2012, the Secretary shall ensure the cost
neutrality of such reductions. The Secretary
shall not prescribe such regulations in final
form unless an official report from the
Director of the Office of Management and Budget
to the Secretary and a comparable report from
the Director of the Congressional Budget Office
to the Congress each certify that any such
reductions will be completely cost neutral.
Such reports shall be transmitted to the
authorizing committees not less than 60 days
prior to the publication of regulations
proposing such reductions.
(C) No repayment incentives for new loans
disbursed on or after july 1, 2012.--
Notwithstanding any other provision of this
part, the Secretary is prohibited from
authorizing or providing any repayment
incentive not otherwise authorized under this
part to encourage on-time repayment of a loan
under this part for which the first
disbursement of principal is made on or after
July 1, 2012, including any reduction in the
interest or origination fee rate paid by a
borrower of such a loan, except that the
Secretary may provide for an interest rate
reduction for a borrower who agrees to have
payments on such a loan automatically
electronically debited from a bank account.
(10) Publication.--The Secretary shall determine the
applicable rates of interest under this subsection
after consultation with the Secretary of the Treasury
and shall publish such rate in the Federal Register as
soon as practicable after the date of determination.
(c) Loan Fee.--
(1) In general.--The Secretary shall charge the
borrower of a loan made under this part an origination
fee of 4.0 percent of the principal amount of loan.
(2) Subsequent reduction.--Paragraph (1) shall be
applied to loans made under this part, other than
Federal Direct Consolidation loans and Federal Direct
PLUS loans--
(A) by substituting ``3.0 percent'' for ``4.0
percent'' with respect to loans for which the
first disbursement of principal is made on or
after the date of enactment of the Higher
Education Reconciliation Act of 2005, and
before July 1, 2007;
(B) by substituting ``2.5 percent'' for ``4.0
percent'' with respect to loans for which the
first disbursement of principal is made on or
after July 1, 2007, and before July 1, 2008;
(C) by substituting ``2.0 percent'' for ``4.0
percent'' with respect to loans for which the
first disbursement of principal is made on or
after July 1, 2008, and before July 1, 2009;
(D) by substituting ``1.5 percent'' for ``4.0
percent'' with respect to loans for which the
first disbursement of principal is made on or
after July 1, 2009, and before July 1, 2010;
and
(E) by substituting ``1.0 percent'' for ``4.0
percent'' with respect to loans for which the
first disbursement of principal is made on or
after July 1, 2010, and before October 1, 2024.
(d) Repayment Plans.--
(1) Design and selection.--Consistent with criteria
established by the Secretary, the Secretary shall offer
a borrower of a loan made under this part a variety of
plans for repayment of such loan, including principal
and interest on the loan. The borrower shall be
entitled to accelerate, without penalty, repayment on
the borrower's loans under this part. The borrower may
choose--
(A) a standard repayment plan, consistent
with subsection (a)(1) of this section and with
section 428(b)(9)(A)(i);
(B) a graduated repayment plan, consistent
with section 428(b)(9)(A)(ii);
(C) an extended repayment plan, consistent
with section 428(b)(9)(A)(iv), except that the
borrower shall annually repay a minimum amount
determined by the Secretary in accordance with
section 428(b)(1)(L);
(D) an income contingent repayment plan, with
varying annual repayment amounts based on the
income of the borrower, paid over an extended
period of time prescribed by the Secretary, not
to exceed 25 years, except that the plan
described in this subparagraph shall not be
available to the borrower of a Federal Direct
PLUS loan made on behalf of a dependent
student; and
(E) beginning on July 1, 2009, an income-
based repayment plan that enables borrowers who
have a partial financial hardship to make a
lower monthly payment in accordance with
section 493C, except that the plan described in
this subparagraph shall not be available to the
borrower of a Federal Direct PLUS Loan made on
behalf of a dependent student or a Federal
Direct Consolidation Loan, if the proceeds of
such loan were used to discharge the liability
on such Federal Direct PLUS Loan or a loan
under section 428B made on behalf of a
dependent student.
(2) Selection by secretary.--If a borrower of a loan
made under this part does not select a repayment plan
described in paragraph (1), the Secretary may provide
the borrower with a repayment plan described in
subparagraph (A), (B), or (C) of paragraph (1).
(3) Changes in selections.--The borrower of a loan
made under this part may change the borrower's
selection of a repayment plan under paragraph (1), or
the Secretary's selection of a plan for the borrower
under paragraph (2), as the case may be, under such
terms and conditions as may be established by the
Secretary.
(4) Alternative repayment plans.--The Secretary may
provide, on a case by case basis, an alternative
repayment plan to a borrower of a loan made under this
part who demonstrates to the satisfaction of the
Secretary that the terms and conditions of the
repayment plans available under paragraph (1) are not
adequate to accommodate the borrower's exceptional
circumstances. In designing such alternative repayment
plans, the Secretary shall ensure that such plans do
not exceed the cost to the Federal Government, as
determined on the basis of the present value of future
payments by such borrowers, of loans made using the
plans available under paragraph (1).
(5) Repayment after default.--The Secretary may
require any borrower who has defaulted on a loan made
under this part to--
(A) pay all reasonable collection costs
associated with such loan; and
(B) repay the loan pursuant to an income
contingent repayment plan.
(e) Income Contingent Repayment.--
(1) Information and procedures.--The Secretary may
obtain such information as is reasonably necessary
regarding the income of a borrower (and the borrower's
spouse, if applicable) of a loan made under this part
that is, or may be, repaid pursuant to income
contingent repayment, for the purpose of determining
the annual repayment obligation of the borrower.
Returns and return information (as defined in section
6103 of the Internal Revenue Code of 1986) may be
obtained under the preceding sentence only to the
extent authorized by section 6103(l)(13) of such Code.
The Secretary shall establish procedures for
determining the borrower's repayment obligation on that
loan for such year, and such other procedures as are
necessary to implement effectively income contingent
repayment.
(2) Repayment based on adjusted gross income.--A
repayment schedule for a loan made under this part and
repaid pursuant to income contingent repayment shall be
based on the adjusted gross income (as defined in
section 62 of the Internal Revenue Code of 1986) of the
borrower or, if the borrower is married and files a
Federal income tax return jointly with the borrower's
spouse, on the adjusted gross income of the borrower
and the borrower's spouse.
(3) Additional documents.--A borrower who chooses, or
is required, to repay a loan made under this part
pursuant to income contingent repayment, and for whom
adjusted gross income is unavailable or does not
reasonably reflect the borrower's current income, shall
provide to the Secretary other documentation of income
satisfactory to the Secretary, which documentation the
Secretary may use to determine an appropriate repayment
schedule.
(4) Repayment schedules.--Income contingent repayment
schedules shall be established by regulations
promulgated by the Secretary and shall require payments
that vary in relation to the appropriate portion of the
annual income of the borrower (and the borrower's
spouse, if applicable) as determined by the Secretary.
(5) Calculation of balance due.--The balance due on a
loan made under this part that is repaid pursuant to
income contingent repayment shall equal the unpaid
principal amount of the loan, any accrued interest, and
any fees, such as late charges, assessed on such loan.
The Secretary may promulgate regulations limiting the
amount of interest that may be capitalized on such
loan, and the timing of any such capitalization.
(6) Notification to borrowers.--The Secretary shall
establish procedures under which a borrower of a loan
made under this part who chooses or is required to
repay such loan pursuant to income contingent repayment
is notified of the terms and conditions of such plan,
including notification of such borrower--
(A) that the Internal Revenue Service will
disclose to the Secretary tax return
information as authorized under section
6103(l)(13) of the Internal Revenue Code of
1986; and
(B) that if a borrower considers that special
circumstances, such as a loss of employment by
the borrower or the borrower's spouse, warrant
an adjustment in the borrower's loan repayment
as determined using the information described
in subparagraph (A), or the alternative
documentation described in paragraph (3), the
borrower may contact the Secretary, who shall
determine whether such adjustment is
appropriate, in accordance with criteria
established by the Secretary.
(7) Maximum repayment period.--In calculating the
extended period of time for which an income contingent
repayment 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, as in effect on the day before the
date of enactment of the PROSPER Act and pursuant to
section 461(a)--
(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).
(f) Deferment.--
(1) Effect on principal and interest.--A borrower of
a loan made under this part who meets the requirements
described in paragraph (2) shall be eligible for a
deferment, during which periodic installments of
principal need not be paid, and interest--
(A) shall not accrue, in the case of a--
(i) Federal Direct Stafford Loan; or
(ii) a Federal Direct Consolidation
Loan that consolidated only Federal
Direct Stafford Loans, or a combination
of such loans and Federal Stafford
Loans for which the student borrower
received an interest subsidy under
section 428; or
(B) shall accrue and be capitalized or paid
by the borrower, in the case of a Federal
Direct PLUS Loan, a Federal Direct Unsubsidized
Stafford Loan, or a Federal Direct
Consolidation Loan not described in
subparagraph (A)(ii).
(2) Eligibility.--A borrower of a loan made under
this part shall be eligible for a deferment during any
period--
(A) during which the borrower--
(i) is carrying at least one-half the
normal full-time work load for the
course of study that the borrower is
pursuing, as determined by the eligible
institution (as such term is defined in
section 435(a)) the borrower is
attending; or
(ii) is pursuing a course of study
pursuant to a graduate fellowship
program approved by the Secretary, or
pursuant to a rehabilitation training
program for individuals with
disabilities approved by the Secretary,
except that no borrower shall be eligible for a
deferment under this subparagraph, or a loan
made under this part (other than a Federal
Direct PLUS Loan or a Federal Direct
Consolidation Loan), while serving in a medical
internship or residency program;
(B) not in excess of 3 years during which the
borrower is seeking and unable to find full-
time employment;
(C) during which the borrower--
(i) is serving on active duty during
a war or other military operation or
national emergency; or
(ii) is performing qualifying
National Guard duty during a war or
other military operation or national
emergency,
and for the 180-day period following the
demobilization date for the service described
in clause (i) or (ii); or
(D) not in excess of 3 years during which the
Secretary determines, in accordance with
regulations prescribed under section 435(o),
that the borrower has experienced or will
experience an economic hardship.
(3) Definition of borrower.--For the purpose of this
subsection, the term ``borrower'' means an individual
who is a new borrower on the date such individual
applies for a loan under this part for which the first
disbursement is made on or after July 1, 1993.
(4) Deferments for previous part b loan borrowers.--A
borrower of a loan made under this part, who at the
time such individual applies for such loan, has an
outstanding balance of principal or interest owing on
any loan made, insured, or guaranteed under part B of
title IV prior to July 1, 1993, shall be eligible for a
deferment under section 427(a)(2)(C) or section
428(b)(1)(M) as such sections were in effect on July
22, 1992.
(g) Federal Direct Consolidation Loans.--A borrower of a loan
made under this part, and first disbursed before October 1,
2024, may consolidate such loan with the loans described in
section 428C(a)(4), including any loan made under part B and
first disbursed before July 1, 2010. To be eligible for a
consolidation loan under this part, a borrower shall meet the
eligibility criteria set forth in section 428C(a)(3). The
authority to make consolidation loans under this subsection
expires at the close of September 30, 2024. No loan may be made
under this subsection for which the disbursement is on or after
October 1, 2024.
[(h) Borrower Defenses.--Notwithstanding any other provision
of State or Federal law, the Secretary shall specify in
regulations which acts or omissions of an institution of higher
education a borrower may assert as a defense to repayment of a
loan made under this part, except that in no event may a
borrower recover from the Secretary, in any action arising from
or relating to a loan made under this part, an amount in excess
of the amount such borrower has repaid on such loan.]
(h) Borrower Defenses.--
(1) In general.--In any proceeding to collect on a
loan made under this part on or after July 1, 2018 to a
borrower, the Secretary shall abide by the following:
(A) In no event may the borrower recover any
amount previously collected or be freed of
amounts owed to the Secretary without
submitting an individually-filed application
for approval.
(B) In no event may the borrower recover
amounts previously collected by the Secretary,
in any action arising from or relating to a
loan made under this part, in an amount in
excess of the amount that has been paid by the
borrower on such loan.
(C) In no event may the borrower submit an
application to recover amounts previously
collected by the Secretary later than 3 years
after the misconduct or breach of contract on
behalf of the institution takes place that
gives rise to the borrower to assert a defense
to repayment of the loan.
(D) In no event may anyone other than an
administrative law judge or its equivalent
preside over hearings of any kind related to
applications submitted under this subsection.
(E) In no event may the Secretary approve or
disapprove the borrower's application under
this subsection without allowing for the equal
consideration of evidence and arguments
presented by a representative on behalf of the
student or students and a representative on
behalf of the institution, if either such party
makes a request.
(F) In no event may the Secretary withhold
from an institution any materials, facts, or
evidence used when processing an application
submitted by the borrower.
(G) In no event may the borrower of a loan
made, insured or guaranteed under this title
(other than a loan made under this part or a
Federal ONE Loan) submit an application under
this subsection without consolidating the loans
of the borrower into a Federal ONE
Consolidation Loan.
(2) Borrower application requirements.--
(A) In general.--An application submitted by
a borrower under this subsection to the
Secretary shall--
(i) certify the borrower's receipt of
loan proceeds, in whole or in part, to
attend the named institution of higher
education;
(ii) provide evidence described in
subparagraph (B) that supports a
borrower defense to repayment of the
loan; and
(iii) indicate whether the borrower
has made a claim with respect to the
information underlying the borrower
defense with any third party and, if
so, the amount of any payment received
by the borrower or credited to the
borrower's loan obligation.
(B) Evidence.--The borrower has a borrower
defense if--
(i) the borrower, whether as an
individual or as a member of a class,
or a governmental agency, has obtained
against the institution of higher
education a nondefault, favorable
contested judgment based on State or
Federal law in a court or
administrative tribunal of competent
jurisdiction;
(ii) the institution of higher
education for which the borrower
received the loan made under this part
failed to perform its obligations under
the terms of a contract with the
student; or
(iii) the institution of higher
education described in clause (ii) or
any of its representatives engaged
directly in marketing, recruitment or
admissions activities, or any other
institution of higher education,
organization, or person with whom such
institution has an agreement to provide
educational programs, or to provide
marketing, advertising, recruiting, or
admissions services, made a substantial
misrepresentation within the meaning of
section 487(c)(3)(B)(i)(II) that the
borrower reasonably relied on when the
borrower decided to attend, or to
continue attending, such institution.
(3) Secretarial notification requirements.--
(A) receipt of application.--Upon receipt of
a borrower's application, the Secretary--
(i) if the borrower is not in default
on the loan for which a borrower
defense has been asserted, shall grant
a forbearance and notify the borrower
of the option to decline the
forbearance and to continue making
payments on the loan;
(ii) if the borrower is in default on
the loan for which a borrower defense
has been asserted--
(I) shall suspend collection
activity on the loan until the
Secretary issues a decision on
the borrower's claim;
(II) shall notify the
borrower of the suspension of
collection activity and explain
that collection activity will
resume if the Secretary
determines that the borrower
does not qualify for a full
discharge; and
(III) shall notify the
borrower of the option to
continue making payments under
a rehabilitation agreement or
other repayment agreement on
the defaulted loan; and
(iii) shall to the extent possible,
notify the institutions against which
the application is filed, which
notification shall include--
(I) the reasons that the
application has been filed; and
(II) the amount of relief
requested.
(B) Approved application.--If a borrower's
application is approved in full or in part, the
Secretary shall--
(i) notify the borrower and the
institution in writing of that
determination and of the relief
provided; and
(ii) inform the institution of the
opportunity to request a one-time
reconsideration of the claim in the
application if new evidence that was
not previously provided can be
identified.
(C) Application not approved.--If a
borrower's application is not approved in full
or in part, the Secretary--
(i) shall notify the borrower and the
institution of the reasons for the
denial, the evidence that was relied
upon, any portion of the loan that is
due and payable to the Secretary,
whether the Secretary will reimburse
any amounts previously collected, and
inform the borrower that the loan will
return to its status prior to the
borrower's submission of the
application; and
(ii) shall inform the borrower of the
opportunity to request a one-time
reconsideration of the claim in the
application if new evidence that was
not previously provided can be
identified.
(D) Consolidation.--During a proceeding for
an individual borrower, the Secretary may
consolidate individually-filed applications
that have common facts and claims and resolve
the borrowers' borrower defense claims for
faster processing.
(E) New evidence defined.--For purposes of
this paragraph, the term ``new evidence'' means
relevant evidence that the borrower or the
institution did not previously provide and that
was not identified in the final decision as
evidence that was relied upon for the final
decision. If accepted for reconsideration by
the Secretary, the Secretary shall follow the
procedure under this paragraph.
(F) Notification.--After a borrower submits
an application, the Secretary shall include in
the notification to the borrower--
(i) the actions, including deadlines
and document requests, that will be
taken by the Secretary when processing
an application by the borrower; and
(ii) that the final action by the
Secretary shall be available for review
under subchapter II of chapter 5, and
chapter 7, of title 5, United States
Code (commonly known as the
``Administrative Procedure Act'').
(G) Timely approval process.--During a
proceeding for an individual borrower, the
Secretary shall process a submitted application
and notify the borrower of the final
determination in a manner that is timely and
efficient.
(H) Report.--Not later than two years after
the date of enactment of the PROSPER Act, the
Secretary shall submit to the authorizing
committees a report that includes--
(i) the established policies and
procedures for processing applications;
(ii) the established policies and
procedures for approving an
application;
(iii) the established policies and
procedures for denying an application;
(iv) the method used to calculate the
amount and type of relief to be awarded
to borrowers who submit an application;
and
(v) the established timeframes for
the policies and procedures identified
in clauses (i) through (iii).
(4) Calculation of relief.--The Secretary shall
determine the appropriate method for calculating the
amount of relief to be awarded to a borrower as a
result of a proceeding described in this subsection
based on the materials, facts, and evidence presented
during the proceeding.
(5) Further relief.--The Secretary may afford the
borrower such further relief as the Secretary
determines is appropriate under the circumstances, but
which shall not exceed the following:
(A) Reimbursing the borrower for amounts paid
toward the loan voluntarily or through enforced
collection.
(B) Restoring eligibility for assistance
under this title after determining that the
borrower is not in default on the loan.
(C) Updating reports to consumer reporting
agencies to which the Secretary previously made
adverse credit reports with regard to a loan
made under this part after July 1, 2018.
(6) Recovery.--
(A) In general.--The Secretary may initiate
an appropriate proceeding to require the
institution of higher education whose act or
omission resulted in the borrower's successful
defense against repayment of a loan made under
this part to pay to the Secretary the amount of
the loan to which the defense applies not later
than 3 years from the end of the last award
year in which the student attended the
institution.
(B) Notice.--The Secretary may initiate a
proceeding to collect at any time if the
institution received notice of the claim before
the end of the later of the periods described
in subparagraph (A). For purposes of this
subparagraph, notice includes receipt of--
(i) actual notice from the borrower,
from a representative of the borrower,
or from the Department;
(ii) a class action complaint
asserting relief for a class that may
include the borrower; or
(iii) written notice, including a
civil investigative demand or other
written demand for information, from a
Federal or State agency that has power
to initiate an investigation into
conduct of the institution of higher
education relating to specific
programs, periods, or practices that
may have affected the borrower.
(i) Loan Application and Promissory Note.--The common
financial reporting form required in section 483(a)(1) shall
constitute the application for loans made under this part
(other than a Federal Direct PLUS loan). The Secretary shall
develop, print, and distribute to participating institutions a
standard promissory note and loan disclosure form.
(j) Loan Disbursement.--
(1) In general.--Proceeds of loans to students under
this part shall be applied to the student's account for
tuition and fees, and, in the case of institutionally
owned housing, to room and board. Loan proceeds that
remain after the application of the previous sentence
shall be delivered to the borrower by check or other
means that is payable to and requires the endorsement
or other certification by such borrower.
(2) Payment periods.--The Secretary shall establish
periods for the payments described in paragraph (1) in
a manner consistent with payment of Federal Pell Grants
under subpart 1 of part A of this title.
(k) Fiscal Control and Fund Accountability.--
(1) In general.--(A) An institution shall maintain
financial records in a manner consistent with records
maintained for other programs under this title.
(B) Except as otherwise required by regulations of
the Secretary an institution may maintain loan funds
under this part in the same account as other Federal
student financial assistance.
(2) Payments and refunds.--Payments and refunds shall
be reconciled in a manner consistent with the manner
set forth for the submission of a payment summary
report required of institutions participating in the
program under subpart 1 of part A, except that nothing
in this paragraph shall prevent such reconciliations on
a monthly basis.
(3) Transaction histories.--All transaction histories
under this part shall be maintained using the same
system designated by the Secretary for the provision of
Federal Pell Grants under subpart 1 of part A of this
title.
(l) Armed Forces Student Loan Interest Payment Program.--
(1) Authority.--Using funds received by transfer to
the Secretary under section 2174 of title 10, United
States Code, for the payment of interest on a loan made
under this part to a member of the Armed Forces, the
Secretary shall pay the interest on the loan as due for
a period not in excess of 36 consecutive months. The
Secretary may not pay interest on such a loan out of
any funds other than funds that have been so
transferred.
(2) Forbearance.--During the period in which the
Secretary is making payments on a loan under paragraph
(1), the Secretary shall grant the borrower
forbearance, in the form of a temporary cessation of
all payments on the loan other than the payments of
interest on the loan that are made under that
paragraph.
(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 repayment
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 repayment 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 Secretary shall cancel the obligation to repay the
balance of principal 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 Stafford Loan, Federal Direct
PLUS Loan, or Federal Direct Unsubsidized
Stafford Loan, or a Federal Direct
Consolidation Loan.
(B) Public service job.--The term ``public
service job'' means--
(i) a full-time job in emergency
management, government (excluding time
served as a member of Congress),
military service, public safety, law
enforcement, public health (including
nurses, nurse practitioners, nurses in
a clinical setting, and full-time
professionals engaged in health care
practitioner occupations and health
care support occupations, as such terms
are defined by the Bureau of Labor
Statistics), public education, social
work in a public child or family
service agency, public interest law
services (including prosecution or
public defense or legal advocacy on
behalf of low-income communities at a
nonprofit organization), early
childhood education (including licensed
or regulated childcare, Head Start, and
State funded prekindergarten), 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 subject areas or areas of
shortage (including nurse faculty,
foreign language faculty, and part-time
faculty at community colleges), as
determined by the Secretary.
(4) Ineligibility for double benefits.--No borrower
may, for the same service, receive a reduction of loan
obligations under both this subsection and section
428J, 428K, 428L, or 460.
(n) Identity Fraud Protection.--The Secretary shall take such
steps as may be necessary to ensure that monthly Federal Direct
Loan statements and other publications of the Department do not
contain more than four digits of the Social Security number of
any individual.
(o) No Accrual of Interest for Active Duty Service Members.--
(1) In general.--Notwithstanding any other provision
of this part and in accordance with paragraphs (2) and
(4), interest shall not accrue for an eligible military
borrower on a loan made under this part for which the
first disbursement is made on or after October 1, 2008,
and before October 1, 2024.
(2) Consolidation loans.--In the case of any
consolidation loan made under this part that is
disbursed on or after October 1, 2008, and before
October 1, 2024, interest shall not accrue pursuant to
this subsection only on such portion of such loan as
was used to repay a loan made under this part for which
the first disbursement is made on or after October 1,
2008, and before October 1, 2024.
(3) Eligible military borrower.--In this subsection,
the term ``eligible military borrower'' means an
individual who--
(A)(i) is serving on active duty during a war
or other military operation or national
emergency; or
(ii) is performing qualifying National Guard
duty during a war or other military operation
or national emergency; and
(B) is serving in an area of hostilities in
which service qualifies for special pay under
section 310, or paragraph (1) or (3) of section
351(a), of title 37, United States Code.
(4) Limitation.--An individual who qualifies as an
eligible military borrower under this subsection may
receive the benefit of this subsection for not more
than 60 months.
[(p) Disclosures.--Each institution of higher education with
which the Secretary has an agreement under section 453, and
each contractor with which the Secretary has a contract under
section 456, shall, with respect to loans under this part and
in accordance with such regulations as the Secretary shall
prescribe, comply with each of the requirements under section
433 that apply to a lender with respect to a loan under part
B.]
(p) Disclosures.--
(1) In general.--The Secretary shall, with respect to
loans under this part and in accordance with such
regulations as the Secretary shall prescribe, comply
with each of the requirements under section 433 that
apply to a lender with respect to a loan under part B.
(2) Plain language disclosure form.--
(A) Development and issuance of form.--Not
later than 24 months after the date of the
enactment of this paragraph, the Secretary
shall, based on consumer testing, develop and
issue a model form to be known as the ``Plain
Language Disclosure Form'' that shall be used
by the Secretary to comply with paragraph (1).
(B) Format.--The Secretary shall ensure that
the Plain Language Disclosure Form--
(i) enables borrowers to easily
identify the information required to be
disclosed under section 433(a) with
respect to a loan, with emphasis on the
loan terms determined by the Secretary,
based on consumer testing, to be
critical to understanding the total
costs of the loan and the estimated
monthly repayment;
(ii) has a clear format and design,
including easily readable font; and
(iii) is as succinct as practicable.
(C) Consultation.--In developing Plain
Language Disclosure Form, the Secretary shall,
as appropriate, consult with--
(i) the Federal Reserve Board;
(ii) borrowers of loans under this
part; and
(iii) other organizations involved in
the provision of financial assistance
to students, as identified by the
Secretary.
(3) Electronic system for compliance.--In carrying
out paragraph (2), Secretary shall develop and
implement an electronic system to generate a Plain
Language Disclosure Form for each borrower that
includes personalized information about the borrower
and the borrower's loans.
(4) Limit on liability.--Nothing in this subsection
shall be construed to create a private right of action
against the Secretary with respect to the form or
electronic system developed under this paragraph.
(5) Borrower signature required.--Beginning after the
issuance of the Plain Language Disclosure Form by the
Secretary under paragraph (2), a loan may not be issued
to a borrower under this part unless the borrower
acknowledges to the Secretary, in writing (which may
include an electronic signature), that the borrower has
read the Plain Language Disclosure Form for the loan
concerned.
(6) Consumer testing defined.--In this subsection,
the term ``consumer testing'' means the solicitation of
feedback from individuals, including borrowers and
prospective borrowers of loans under this part (as
determined by the Secretary), about the usefulness of
different methods of disclosing material terms of loans
on the Plain Language Disclosure Form to maximize
borrowers' understanding of the terms and conditions of
such loans.
(q) Eligibility For, and Interest Charges On, Federal Direct
Stafford Loans for New Borrowers on or After July 1, 2013.--
(1) In general.--Notwithstanding subsection (a) or
any other provision of this title, any borrower who was
a new borrower on or after July 1, 2013, shall not be
eligible for a Federal Direct Stafford Loan if the
period of time for which the borrower has received
Federal Direct Stafford Loans, in the aggregate,
exceeds the period of enrollment described in paragraph
(3). Such borrower may still receive any Federal Direct
Unsubsidized Stafford Loan for which such borrower is
otherwise eligible.
(2) Accrual of interest on federal direct stafford
loans.--Notwithstanding subsection (f)(1)(A) or any
other provision of this title and beginning on the date
upon which a borrower who is enrolled in a program of
education or training (including a course of study or
program described in paragraph (3)(B) or (4)(B) of
section 484(b)) for which borrowers are otherwise
eligible to receive Federal Direct Stafford Loans,
becomes ineligible for such loan as a result of
paragraph (1), interest on all Federal Direct Stafford
Loans that were disbursed to such borrower on or after
July 1, 2013, shall accrue. Such interest shall be paid
or capitalized in the same manner as interest on a
Federal Direct Unsubsidized Stafford Loan is paid or
capitalized under section 428H(e)(2).
(3) Period of enrollment.--
(A) In general.--The aggregate period of
enrollment referred to in paragraph (1) shall
not exceed the lesser of--
(i) a period equal to 150 percent of
the published length of the educational
program in which the student is
enrolled; or
(ii) in the case of a borrower who
was previously enrolled in one or more
other educational programs that began
on or after July 1, 2013, and subject
to subparagraph (B), a period of time
equal to the difference between--
(I) 150 percent of the
published length of the longest
educational program in which
the borrower was, or is,
enrolled; and
(II) any periods of
enrollment in which the
borrower received a Federal
Direct Stafford Loan.
(B) Regulations.--The Secretary shall specify
in regulation--
(i) how the aggregate period
described in subparagraph (A) shall be
calculated with respect to a borrower
who was or is enrolled on less than a
full-time basis; and
(ii) how such aggregate period shall
be calculated to include a course of
study or program described in paragraph
(3)(B) or (4)(B) of section 484(b),
respectively.
[SEC. 456. CONTRACTS.
[(a) Contracts for Supplies and Services.--
[(1) In general.--The Secretary shall, to the extent
practicable, award contracts for origination,
servicing, and collection described in subsection (b).
In awarding such contracts, the Secretary shall ensure
that such services and supplies are provided at
competitive prices.
[(2) Entities.--The entities with which the Secretary
may enter into contracts shall include only entities
which the Secretary determines are qualified to provide
such services and supplies and will comply with the
procedures applicable to the award of such contracts.
In the case of awarding contracts for the origination,
servicing, and collection of loans under this part, the
Secretary shall enter into contracts only with entities
that have extensive and relevant experience and
demonstrated effectiveness. The entities with which the
Secretary may enter into such contracts shall include,
where practicable, agencies with agreements with the
Secretary under sections 428(b) and (c), if such
agencies meet the qualifications as determined by the
Secretary under this subsection and if those agencies
have such experience and demonstrated effectiveness. In
awarding contracts to such State agencies, the
Secretary shall, to the extent practicable and
consistent with the purposes of this part, give special
consideration to State agencies with a history of high
quality performance to perform services for
institutions of higher education within their State.
[(3) Rule of construction.--Nothing in this section
shall be construed as a limitation of the authority of
any State agency to enter into an agreement for the
purposes of this section as a member of a consortium of
State agencies.
[(b) Contracts for Origination, Servicing, and Data
Systems.--The Secretary may enter into contracts for--
[(1) the alternative origination of loans to students
attending institutions of higher education with
agreements to participate in the program under this
part (or their parents), if such institutions do not
have agreements with the Secretary under section
454(b);
[(2) the servicing and collection of loans made or
purchased under this part;
[(3) the establishment and operation of 1 or more
data systems for the maintenance of records on all
loans made or purchased under this part; and
[(4) such other aspects of the direct student loan
program as the Secretary determines are necessary to
ensure the successful operation of the program.]
* * * * * * *
SEC. 458. FUNDS FOR ADMINISTRATIVE EXPENSES.
(a) Administrative Expenses.--
(1) Mandatory funds for fiscal year 2006.--For fiscal
year 2006, there shall be available to the Secretary,
from funds not otherwise appropriated, funds to be
obligated for--
(A) administrative costs under this part and
part B, including the costs of the direct
student loan programs under this part; and
(B) account maintenance fees payable to
guaranty agencies under part B and calculated
in accordance with subsections (b) and (c),
not to exceed (from such funds not otherwise
appropriated) $820,000,000 in fiscal year 2006.
(3) Authorization for administrative costs beginning
in fiscal years [2007] 2019 through [2014] 2024.--For
each of the fiscal years [2007] 2019 through [2014]
2024, there are authorized to be appropriated such sums
as may be necessary for administrative costs under this
[part and part B, including the costs of the direct
student loan programs under this part] title.
(4) Continuing mandatory funds for account
maintenance fees.--For each of the fiscal years 2007
through [2017] 2024, there shall be available to the
Secretary, from funds not otherwise appropriated, funds
to be obligated for account maintenance fees payable to
guaranty agencies under part B and calculated in
accordance with subsection (b).
(5) Account maintenance fees.--Account maintenance
fees under paragraph (3) shall be paid quarterly and
deposited in the Agency Operating Fund established
under section 422B.
(6) Technical assistance to institutions of higher
education.--
(A) Provision of assistance.--The Secretary
shall provide institutions of higher education
participating, or seeking to participate, in
the loan programs under this part with
technical assistance in establishing and
administering such programs.
(B) Funds.--There are authorized to be
appropriated, and there are appropriated, to
carry out this paragraph (in addition to any
other amounts appropriated to carry out this
paragraph and out of any money in the Treasury
not otherwise appropriated), $50,000,000 for
fiscal year [2010] 2019.
(C) Definition.--In this paragraph, the term
``assistance'' means the provision of technical
support, [training] education, materials,
technical assistance, and financial assistance.
[(7) Additional payments.--
[(A) Provision of assistance.--The Secretary
shall provide payments to loan servicers for
retaining jobs at locations in the United
States where such servicers were operating
under part B on January 1, 2010.
[(B) Funds.--There are authorized to be
appropriated, and there are appropriated, to
carry out this paragraph (in addition to any
other amounts appropriated to carry out this
paragraph and out of any money in the Treasury
not otherwise appropriated), $25,000,000 for
each of the fiscal years 2010 and 2011.]
[(8)] (7) Carryover.--The Secretary may carry over
funds made available under this section to a subsequent
fiscal year.
(b) Calculation Basis.--Account maintenance fees payable to
guaranty agencies under subsection (a)(4) shall be calculated
on the basis of 0.06 percent of the original principal amount
of outstanding loans on which insurance was issued under part
B.
(c) Budget Justification.--No funds may be expended under
this section unless the Secretary includes in the Department of
Education's annual budget justification to Congress a detailed
description of the specific activities for which the funds made
available by this section have been used in the prior and
current years (if applicable), the activities and costs planned
for the budget year, and the projection of activities and costs
for each remaining year for which administrative expenses under
this section are made available.
* * * * * * *
SEC. 460. LOAN CANCELLATION FOR TEACHERS.
(a) Statement of Purpose.--It is the purpose of this section
to encourage individuals to enter and continue in the teaching
profession.
(b) Program Authorized.--The Secretary shall carry out a
program of canceling the obligation to repay a qualified loan
amount in accordance with subsection (c) for Federal Direct
Stafford Loans and Federal Direct Unsubsidized Stafford Loans
made under this part for any new borrower on or after October
1, 1998, who--
(1) has been employed as a full-time teacher for 5
consecutive complete school years--
(A) in a school or location [that qualifies
under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who
teach in such schools or locations] described
in section 420N(b)(1)(B); and
(B) if employed as an elementary school or
secondary school teacher, is highly qualified
as defined in section 9101 of the Elementary
and Secondary Education Act of 1965, or meets
the requirements of subsection (g)(3); and
(2) is not in default on a loan for which the
borrower seeks forgiveness.
(c) Qualified Loan Amounts.--
(1) In general.--The Secretary shall cancel not more
than $5,000 in the aggregate of the loan obligation on
a Federal Direct Stafford Loan or a Federal Direct
Unsubsidized Stafford Loan that is outstanding after
the completion of the fifth complete school year of
teaching described in subsection (b)(1). No borrower
may receive a reduction of loan obligations under both
this section and section 428J.
(2) Treatment of consolidation loans.--A loan amount
for a Federal Direct Consolidation Loan may be a
qualified loan amount for the purposes of this
subsection only to the extent that such loan amount was
used to repay a Federal Direct Stafford Loan, a Federal
Direct Unsubsidized Stafford Loan, or a loan made under
section 428 or 428H, for a borrower who meets the
requirements of subsection (b), as determined in
accordance with regulations prescribed by the
Secretary.
(3) Additional amounts for teachers in mathematics,
science, or special education.--Notwithstanding the
amount specified in paragraph (1), the aggregate amount
that the Secretary shall cancel under this section
shall be not more than $17,500 in the case of--
(A) a secondary school teacher--
(i) who meets the requirements of
subsection (b); and
(ii) whose qualifying employment for
purposes of such subsection is teaching
mathematics or science on a full-time
basis; and
(B) an elementary school or secondary school
teacher--
(i) who meets the requirements of
subsection (b);
(ii) whose qualifying employment for
purposes of such subsection is as a
special education teacher whose primary
responsibility is to provide special
education to children with disabilities
(as those terms are defined in section
602 of the Individuals with
Disabilities Education Act); and
(iii) who, as certified by the chief
administrative officer of the public or
non-profit private elementary school or
secondary school in which the borrower
is employed, or, in the case of a
teacher who is employed by an
educational service agency, as
certified by the chief administrative
officer of such agency, is teaching
children with disabilities that
correspond with the borrower's special
education training and has demonstrated
knowledge and teaching skills in the
content areas of the elementary school
or secondary school curriculum that the
borrower is teaching.
(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of
this section.
(e) Construction.--Nothing in this section shall be construed
to authorize any refunding of any canceled loan.
(f) List.--If the list of schools in which a teacher may
perform service pursuant to subsection (b) is not available
before May 1 of any year, the Secretary may use the list for
the year preceding the year for which the determination is made
to make such service determination.
(g) Additional Eligibility Provisions.--
(1) Continued eligibility.--Any teacher who performs
service in a school that--
(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
(B) in a subsequent year fails to meet the
requirements of such subsection, may continue
to teach in such school and shall be eligible
for loan cancellation pursuant to subsection
(b).
(2) Prevention of double benefits.--No borrower may,
for the same voluntary service, receive a benefit under
both this section and--
(A) section 428K;
(B) section 455(m); or
(C) subtitle D of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12601
et seq.).
(3) Private school teachers.--An individual who is
employed as a teacher in a private school and is exempt
from State certification requirements (unless otherwise
applicable under State law), may, in lieu of the
requirement of subsection (b)(1)(B), have such
employment treated as qualifying employment under this
section if such individual is permitted to and does
satisfy rigorous subject knowledge and skills tests by
taking competency tests in the applicable grade levels
and subject areas. For such purposes, the competency
tests taken by such a private school teacher shall be
recognized by 5 or more States for the purpose of
fulfilling the highly qualified teacher requirements
under section 9101 of the Elementary and Secondary
Education Act of 1965, and the score achieved by such
teacher on each test shall equal or exceed the average
passing score of those 5 States.
(h) Definition.--For the purpose of this section, the term
``year'' where applied to service as a teacher means an
academic year as defined by the Secretary.
Part E--[Federal Perkins Loans] FEDERAL ONE LOAN PROGRAM
[SEC. 461. APPROPRIATIONS AUTHORIZED.
[(a) Program Authority.--The Secretary shall carry out a
program assisting in the maintenance of funds at institutions
of higher education for the making of loans to undergraduate
students in need to pursue their courses of study in such
institutions or while engaged in programs of study abroad
approved for credit by such institutions. Loans made under this
part shall be known as ``Federal Perkins Loans''.
[(b) Authority to Make Loans.--
[(1) In general.--
[(A) Loans for new undergraduate federal
perkins loan borrowers.--Through September 30,
2017, an institution of higher education may
make a loan under this part to an eligible
undergraduate student who, on the date of
disbursement of a loan made under this part,
has no outstanding balance of principal or
interest on a loan made under this part from
the student loan fund established under this
part by the institution, but only if the
institution has awarded all Federal Direct
Loans, as referenced under subparagraphs (A)
and (D) of section 455(a)(2), for which such
undergraduate student is eligible.
[(B) Loans for current undergraduate federal
perkins loan borrowers.--Through September 30,
2017, an institution of higher education may
make a loan under this part to an eligible
undergraduate student who, on the date of
disbursement of a loan made under this part,
has an outstanding balance of principal or
interest on a loan made under this part from
the student loan fund established under this
part by the institution, but only if the
institution has awarded all Federal Direct
Stafford Loans as referenced under section
455(a)(2)(A) for which such undergraduate
student is eligible.
[(C) Loans for certain graduate borrowers.--
Through September 30, 2016, with respect to an
eligible graduate student who has received a
loan made under this part prior to October 1,
2015, an institution of higher education that
has most recently made such a loan to the
student for an academic program at such
institution may continue making loans under
this part from the student loan fund
established under this part by the institution
to enable the student to continue or complete
such academic program.
[(2) No additional loans.--An institution of higher
education shall not make loans under this part after
September 30, 2017.
[(3) Prohibition on additional appropriations.--No
funds are authorized to be appropriated under this Act
or any other Act to carry out the functions described
in paragraph (1) for any fiscal year following fiscal
year 2015.
[SEC. 462. ALLOCATION OF FUNDS.
[(a) Allocation Based on Previous Allocation.--(1) From the
amount appropriated pursuant to section 461(b) for each fiscal
year, the Secretary shall first allocate to each eligible
institution an amount equal to--
[(A) 100 percent of the amount received under
subsections (a) and (b) of this section for fiscal year
1999 (as such subsections were in effect with respect
to allocations for such fiscal year), multiplied by
[(B) the institution's default penalty, as determined
under subsection (e),
except that if the institution has a cohort default rate in
excess of the applicable maximum cohort default rate under
subsection (f), the institution may not receive an allocation
under this paragraph.
[(2)(A) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this part after fiscal year
1999 but is not a first or second time participant, an amount
equal to the greater of--
[(i) $5,000; or
[(ii) 100 percent of the amount received and expended
under this part for the first year it participated in
the program.
[(B) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this part after fiscal year
1999 and is a first or second time participant, an amount equal
to the greatest of--
[(i) $5,000;
[(ii) an amount equal to (I) 90 percent of the amount
received and used under this part in the second
preceding fiscal year by eligible institutions offering
comparable programs of instruction, divided by (II) the
number of students enrolled at such comparable
institutions in such fiscal year, multiplied by (III)
the number of students enrolled at the applicant
institution in such fiscal year; or
[(iii) 90 percent of the institution's allocation
under this part for the preceding fiscal year.
[(C) Notwithstanding subparagraphs (A) and (B) of this
paragraph, the Secretary shall allocate to each eligible
institution which--
[(i) was a first-time participant in the program in
fiscal year 2000 or any subsequent fiscal year, and
[(ii) received a larger amount under this subsection
in the second year of participation,
an amount equal to 90 percent of the amount it received under
this subsection in its second year of participation.
[(D) For any fiscal year after a fiscal year in which an
institution receives an allocation under subparagraph (A), (B),
or (C), the Secretary shall allocate to such institution an
amount equal to the product of--
[(i) the amount determined under subparagraph (A),
(B), or (C), multiplied by
[(ii) the institution's default penalty, as
determined under subsection (e),
except that if the institution has a cohort default rate in
excess of the applicable maximum cohort default rate under
subsection (f), the institution may not receive an allocation
under this paragraph.
[(3)(A) If the amount appropriated for any fiscal year is
less than the amount required to be allocated to all
institutions under paragraph (1) of this subsection, then the
amount of the allocation to each such institution shall be
ratably reduced.
[(B) If the amount appropriated for any fiscal year is more
than the amount required to be allocated to all institutions
under paragraph (1) but less than the amount required to be
allocated to all institutions under paragraph (2), then--
[(i) the Secretary shall allot the amount required to
be allocated to all institutions under paragraph (1),
and
[(ii) the amount of the allocation to each
institution under paragraph (2) shall be ratably
reduced.
[(C) If additional amounts are appropriated for any such
fiscal year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount allocated
equals the amount required to be allocated under paragraphs (1)
and (2) of this subsection).
[(b) Allocation of Excess Based on Share of Excess Eligible
Amounts.--(1) From the remainder of the amount appropriated
pursuant to section 461(b) after making the allocations
required by subsection (a) of this section, the Secretary shall
allocate to each eligible institution which has an excess
eligible amount an amount which bears the same ratio to such
remainder as such excess eligible amount bears to the sum of
the excess eligible amounts of all such eligible institutions
(having such excess eligible amounts).
[(2) For any eligible institution, the excess eligible amount
is the amount, if any, by which--
[(A)(i) that institution's eligible amount (as
determined under paragraph (3)), divided by (ii) the
sum of the eligible amounts of all institutions (as so
determined), multiplied by (iii) the amount
appropriated pursuant to section 461(b) for the fiscal
year; exceeds
[(B) the amount required to be allocated to that
institution under subsection (a),
except that an eligible institution which has a cohort default
rate in excess of the applicable maximum cohort default rate
under subsection (f) may not receive an allocation under this
paragraph.
[(3) For any eligible institution, the eligible amount of
that institution is equal to--
[(A) the amount of the institution's self-help need,
as determined under subsection (c); minus
[(B) the institution's anticipated collections;
multiplied by
[(C) the institution's default penalty, as determined
under subsection (e);
except that, if the institution has a cohort default rate in
excess of the applicable maximum cohort default rate under
subsection (f), the eligible amount of that institution is
zero.
[(c) Determination of Institution's Self-Help Need.--(1) The
amount of an institution's self-help need is equal to the sum
of the self-help need of the institution's eligible
undergraduate students and the self-help need of the
institution's eligible graduate and professional students.
[(2) To determine the self-help need of an institution's
eligible undergraduate students, the Secretary shall--
[(A) establish various income categories for
dependent and independent undergraduate students;
[(B) establish an expected family contribution for
each income category of dependent and independent
undergraduate students, determined on the basis of the
average expected family contribution (computed in
accordance with part F of this title) of a
representative sample within each income category for
the second preceding fiscal year;
[(C) compute 25 percent of the average cost of
attendance for all undergraduate students;
[(D) multiply the number of eligible dependent
students in each income category by the lesser of--
[(i) 25 percent of the average cost of
attendance for all undergraduate students
determined under subparagraph (C); or
[(ii) the average cost of attendance for all
undergraduate students minus the expected
family contribution determined under
subparagraph (B) for that income category,
except that the amount computed by such
subtraction shall not be less than zero;
[(E) add the amounts determined under subparagraph
(D) for each income category of dependent students;
[(F) multiply the number of eligible independent
students in each income category by the lesser of--
[(i) 25 percent of the average cost of
attendance for all undergraduate students
determined under subparagraph (C); or
[(ii) the average cost of attendance for all
undergraduate students minus the expected
family contribution determined under
subparagraph (B) for that income category,
except that the amount computed by such
subtraction for any income category shall not
be less than zero;
[(G) add the amounts determined under subparagraph
(F) for each income category of independent students;
and
[(H) add the amounts determined under subparagraphs
(E) and (G).
[(3) To determine the self-help need of an institution's
eligible graduate and professional students, the Secretary
shall--
[(A) establish various income categories for graduate
and professional students;
[(B) establish an expected family contribution for
each income category of graduate and professional
students, determined on the basis of the average
expected family contribution (computed in accordance
with part F of this title) of a representative sample
within each income category for the second preceding
fiscal year;
[(C) determine the average cost of attendance for all
graduate and professional students;
[(D) subtract from the average cost of attendance for
all graduate and professional students (determined
under subparagraph (C)), the expected family
contribution (determined under subparagraph (B)) for
each income category, except that the amount computed
by such subtraction for any income category shall not
be less than zero;
[(E) multiply the amounts determined under
subparagraph (D) by the number of eligible students in
each category;
[(F) add the amounts determined under subparagraph
(E) for each income category.
[(4)(A) For purposes of paragraphs (2) and (3), the term
``average cost of attendance'' means the average of the
attendance costs for undergraduate students and for graduate
and professional students, which shall include (i) tuition and
fees determined in accordance with subparagraph (B), (ii)
standard living expenses determined in accordance with
subparagraph (C), and (iii) books and supplies determined in
accordance with subparagraph (D).
[(B) The average undergraduate and graduate and professional
tuition and fees described in subparagraph (A)(i) shall be
computed on the basis of information reported by the
institution to the Secretary, which shall include (i) total
revenue received by the institution from undergraduate and
graduate tuition and fees for the second year preceding the
year for which it is applying for an allocation, and (ii) the
institution's enrollment for such second preceding year.
[(C) The standard living expense described in subparagraph
(A)(ii) is equal to 150 percent of the difference between the
income protection allowance for a family of five with one in
college and the income protection allowance for a family of six
with one in college for a single independent student.
[(D) The allowance for books and supplies described in
subparagraph (A)(iii) is equal to $600.
[(d) Anticipated Collections.--(1) An institution's
anticipated collections are equal to the amount which was
collected during the second year preceding the beginning of the
award period, multiplied by 1.21.
[(2) The Secretary shall establish an appeals process by
which the anticipated collections required in paragraph (1) may
be waived for institutions with low cohort default rates in the
program assisted under this part.
[(e) Default Penalties.--
[(1) Years preceding fiscal year 2000.--For any
fiscal year preceding fiscal year 2000, any institution
with a cohort default rate that--
[(A) equals or exceeds 15 percent, shall
establish a default reduction plan pursuant to
regulations prescribed by the Secretary, except
that such plan shall not be required with
respect to an institution that has a default
rate of less than 20 percent and that has less
than 100 students who have loans under this
part in such academic year;
[(B) equals or exceeds 20 percent, but is
less than 25 percent, shall have a default
penalty of 0.9;
[(C) equals or exceeds 25 percent, but is
less than 30 percent, shall have a default
penalty of 0.7; and
[(D) equals or exceeds 30 percent shall have
a default penalty of zero.
[(2) Years following fiscal year 2000.--For fiscal
year 2000 and any succeeding fiscal year, any
institution with a cohort default rate (as defined
under subsection (g)) that equals or exceeds 25 percent
shall have a default penalty of zero.
[(3) Ineligibility.--
[(A) In general.--For fiscal year 2000 and
any succeeding fiscal year, any institution
with a cohort default rate (as defined in
subsection (g)) that equals or exceeds 50
percent for each of the 3 most recent years for
which data are available shall not be eligible
to participate in a program under this part for
the fiscal year for which the determination is
made and the 2 succeeding fiscal years, unless,
within 30 days of receiving notification from
the Secretary of the loss of eligibility under
this paragraph, the institution appeals the
loss of eligibility to the Secretary. The
Secretary shall issue a decision on any such
appeal within 45 days after the submission of
the appeal. Such decision may permit the
institution to continue to participate in a
program under this part if--
[(i) the institution demonstrates to
the satisfaction of the Secretary that
the calculation of the institution's
cohort default rate is not accurate,
and that recalculation would reduce the
institution's cohort default rate for
any of the 3 fiscal years below 50
percent; or
[(ii) there are, in the judgment of
the Secretary, such a small number of
borrowers entering repayment that the
application of this subparagraph would
be inequitable.
[(B) Continued participation.--During an
appeal under subparagraph (A), the Secretary
may permit the institution to continue to
participate in a program under this part.
[(C) Return of funds.--Within 90 days after
the date of any termination pursuant to
subparagraph (A), or the conclusion of any
appeal pursuant to subparagraph (B), whichever
is later, the balance of the student loan fund
established under this part by the institution
that is the subject of the termination shall be
distributed as follows:
[(i) The Secretary shall first be
paid an amount which bears the same
ratio to such balance (as of the date
of such distribution) as the total
amount of Federal capital contributions
to such fund by the Secretary under
this part bears to the sum of such
Federal capital contributions and the
capital contributions to such fund made
by the institution.
[(ii) The remainder of such student
loan fund shall be paid to the
institution.
[(D) Use of returned funds.--Any funds
returned to the Secretary under this paragraph
shall be reallocated to institutions of higher
education pursuant to subsection (i).
[(E) Definition.--For the purposes of
subparagraph (A), the term ``loss of
eligibility'' shall be defined as the mandatory
liquidation of an institution's student loan
fund, and assignment of the institution's
outstanding loan portfolio to the Secretary.
[(f) Applicable Maximum Cohort Default Rate.--
[(1) Award years prior to 2000.--For award years
prior to award year 2000, the applicable maximum cohort
default rate is 30 percent.
[(2) Award year 2000 and succeeding award years.--For
award year 2000 and subsequent years, the applicable
maximum cohort default rate is 25 percent.
[(g) Definition of Cohort Default Rate.--
[(1)(A) The term ``cohort default rate'' means, for
any award year in which 30 or more current and former
students at the institution enter repayment on loans
under this part (received for attendance at the
institution), the percentage of those current and
former students who enter repayment on such loans
(received for attendance at that institution) in that
award year who default before the end of the following
award year.
[(B) For any award year in which less than 30 of the
institution's current and former students enter
repayment, the term ``cohort default rate'' means the
percentage of such current and former students who
entered repayment on such loans in any of the three
most recent award years and who default before the end
of the award year immediately following the year in
which they entered repayment.
[(C) A loan on which a payment is made by the
institution of higher education, its owner, agency,
contractor, employee, or any other entity or individual
affiliated with such institution, in order to avoid
default by the borrower, is considered as in default
for the purposes of this subsection.
[(D) In the case of a student who has attended and
borrowed at more than one school, the student (and his
or her subsequent repayment or default) is attributed
to the school for attendance at which the student
received the loan that entered repayment in the award
year.
[(E) In determining the number of students who
default before the end of such award year, the
institution, in calculating the cohort default rate,
shall exclude--
[(i) any loan on which the borrower has,
after the time periods specified in paragraph
(2)--
[(I) voluntarily made 6 consecutive
payments;
[(II) voluntarily made all payments
currently due;
[(III) repaid in full the amount due
on the
loan; or
[(IV) received a deferment or
forbearance, based on a condition that
began prior to such time periods;
[(ii) any loan which has, after the time
periods specified in paragraph (2), been
rehabilitated or canceled; and
[(iii) any other loan that the Secretary
determines should be excluded from such
determination.
[(F) The Secretary shall prescribe regulations
designed to prevent an institution from evading the
application to that institution of a cohort default
rate determination under this subsection through the
use of such measures as branching, consolidation,
change of ownership or control or other means as
determined by the Secretary.
[(2) For purposes of calculating the cohort default
rate under this subsection, a loan shall be considered
to be in default--
[(A) 240 days (in the case of a loan
repayable monthly), or
[(B) 270 days (in the case of a loan
repayable quarterly),
after the borrower fails to make an installment payment
when due or to comply with other terms of the
promissory note.
[(h) Filing Deadlines.--The Secretary shall, from time to
time, set dates before which institutions must file
applications for allocations under this part.
[(i) Reallocation of Excess Allocations.--
[(1) In general.--(A) If an institution of higher
education returns to the Secretary any portion of the
sums allocated to such institution under this section
for any fiscal year, the Secretary shall reallocate 80
percent of such returned portions to participating
institutions in an amount not to exceed such
participating institution's excess eligible amounts as
determined under paragraph (2).
[(B) For the purpose of this subsection, the term
``participating institution'' means an institution of
higher education that--
[(i) was a participant in the program
assisted under this part in fiscal year 1999;
and
[(ii) did not receive an allocation under
subsection (a) in the fiscal year for which the
reallocation determination is made.
[(2) Excess eligible amount.--For any participating
institution, the excess eligible amount is the amount,
if any, by which--
[(A)(i) that institution's eligible amount
(as determined under subsection (b)(3)),
divided by (ii) the sum of the eligible amounts
of all participating institutions (as
determined under paragraph (3)), multiplied by
(iii) the amount of funds available for
reallocation under this subsection; exceeds
[(B) the amount required to be allocated to
that institution under subsection (b).
[(3) Remainder.--The Secretary shall reallocate the
remainder of such returned portions in accordance with
regulations of the Secretary.
[(4) Allocation reductions.--If under paragraph (1)
of this subsection an institution returns more than 10
percent of its allocation, the institution's allocation
for the next fiscal year shall be reduced by the amount
returned. The Secretary may waive this paragraph for a
specific institution if the Secretary finds that
enforcing it is contrary to the interest of the
program.
[SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.
[(a) Contents of Agreements.--An agreement with any
institution of higher education for the payment of Federal
capital contributions under this part shall--
[(1) provide for the establishment and maintenance of
a student loan fund for the purpose of this part;
[(2) provide for the deposit in such fund of--
[(A) Federal capital contributions from funds
appropriated under section 461;
[(B) a capital contribution by an institution
in an amount equal to one-third of the Federal
capital contributions described in subparagraph
(A);
[(C) collections of principal and interest on
student loans made from deposited funds;
[(D) charges collected pursuant to
regulations under section 464(c)(1)(H); and
[(E) any other earnings of the funds;
[(3) provide that such student loan fund shall be
used only for--
[(A) loans to students, in accordance with
the provisions of this part;
[(B) administrative expenses, as provided in
subsection (b);
[(C) capital distributions, as provided in
section 466; and
[(D) costs of litigation, and other
collection costs agreed to by the Secretary in
connection with the collection of a loan from
the fund (and interest thereon) or a charge
assessed pursuant to regulations under section
464(c)(1)(H);
[(4) provide that where a note or written agreement
evidencing a loan has been in default despite due
diligence on the part of the institution in attempting
collection thereon--
[(A) if the institution has knowingly failed
to maintain an acceptable collection record
with respect to such loan, as determined by the
Secretary in accordance with criteria
established by regulation, the Secretary may--
[(i) require the institution to
assign such note or agreement to the
Secretary, without recompense; and
[(ii) apportion any sums collected on
such a loan, less an amount not to
exceed 30 percent of any sums collected
to cover the Secretary's collection
costs, among other institutions in
accordance with section 462; or
[(B) if the institution is not one described
in subparagraph (A), the Secretary may allow
such institution to refer such note or
agreement to the Secretary, without recompense,
except that, once every six months, any sums
collected on such a loan (less an amount not to
exceed 30 percent of any such sums collected to
cover the Secretary's collection costs) shall
be repaid to such institution and treated as an
additional capital contribution under section
462;
[(5) provide that, if an institution of higher
education determines not to service and collect student
loans made available from funds under this part, the
institution will assign, at the beginning of the
repayment period, notes or evidence of obligations of
student loans made from such funds to the Secretary and
the Secretary shall apportion any sums collected on
such notes or obligations (less an amount not to exceed
30 percent of any such sums collected to cover that
Secretary's collection costs) among other institutions
in accordance with section 462;
[(6) provide that, notwithstanding any other
provision of law, the Secretary will provide to the
institution any information with respect to the names
and addresses of borrowers or other relevant
information which is available to the Secretary, from
whatever source such information may be derived;
[(7) provide assurances that the institution will
comply with the provisions of section 463A;
[(8) provide that the institution of higher education
will make loans first to students with exceptional
need; and
[(9) include such other reasonable provisions as may
be necessary to protect the United States from
unreasonable risk of loss and as are agreed to by the
Secretary and the institution, except that nothing in
this paragraph shall be construed to permit the
Secretary to require the assignment of loans to the
Secretary other than as is provided for in paragraphs
(4) and (5).
[(b) Administrative Expenses.--An institution which has
entered into an agreement under subsection (a) shall be
entitled, for each fiscal year during which it makes student
loans from a student loan fund established under such
agreement, to a payment in lieu of reimbursement for its
expenses in administering its student loan program under this
part during such year. Such payment shall be made in accordance
with section 489.
[(c) Cooperative Agreements With Consumer Reporting
Agencies.--(1) For the purpose of promoting responsible
repayment of loans made pursuant to this part, the Secretary
and each institution of higher education participating in the
program under this part shall enter into cooperative agreements
with consumer reporting agencies to provide for the exchange of
information concerning student borrowers concerning whom the
Secretary has received a referral pursuant to section 467 and
regarding loans held by the Secretary or an institution.
[(2) Each cooperative agreement made pursuant to paragraph
(1) shall be made in accordance with the requirements of
section 430A except that such agreement shall provide for the
disclosure by the Secretary or an institution, as the case may
be, to such consumer reporting agencies, with respect to any
loan held by the Secretary or the institution, respectively,
of--
[(A) the date of disbursement and the amount of such
loans made to any borrower under this part at the time
of disbursement of the loan;
[(B) information concerning the repayment and
collection of any such loan, including information
concerning the status of such loan; and
[(C) the date of cancellation of the note upon
completion of repayment by the borrower of any such
loan, or upon cancellation or discharge of the
borrower's obligation on the loan for any reason.
[(3) Notwithstanding paragraphs (4) and (5) of subsection (a)
of section 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c (a)(4), (a)(5)), a consumer reporting agency may make a
report containing information received from the Secretary or an
institution regarding the status of a borrower's account on a
loan made under this part until the loan is paid in full.
[(4)(A) Except as provided in subparagraph (B), an
institution of higher education, after consultation with the
Secretary and pursuant to the agreements entered into under
paragraph (1), shall disclose at least annually to any consumer
reporting agency with which the Secretary has such an agreement
the information set forth in paragraph (2), and shall disclose
promptly to such consumer reporting agency any changes to the
information previously disclosed.
[(B) The Secretary may promulgate regulations establishing
criteria under which an institution of higher education may
cease reporting the information described in paragraph (2)
before a loan is paid in full.
[(5) Each institution of higher education shall notify the
appropriate consumer reporting agencies whenever a borrower of
a loan that is made and held by the institution and that is in
default makes 6 consecutive monthly payments on such loan, for
the purpose of encouraging such consumer reporting agencies to
update the status of information maintained with respect to
that borrower.
[(d) Limitation on Use of Interest Bearing Accounts.--In
carrying out the provisions of subsection (a)(9), the Secretary
may not require that any collection agency, collection
attorney, or loan servicer collecting loans made under this
part deposit amounts collected on such loans in interest
bearing accounts, unless such agency, attorney, or servicer
holds such amounts for more than 45 days.
[(e) Special Due Diligence Rule.--In carrying out the
provisions of subsection (a)(5) relating to due diligence, the
Secretary shall make every effort to ensure that institutions
of higher education may use Internal Revenue Service skip-
tracing collection procedures on loans made under this part.
[SEC. 463A. STUDENT LOAN INFORMATION BY ELIGIBLE INSTITUTIONS.
[(a) Disclosure Required Prior to Disbursement.--Each
institution of higher education shall, at or prior to the time
such institution makes a loan to a student borrower which is
made under this part, provide thorough and adequate loan
information on such loan to the student borrower. Any
disclosure required by this subsection may be made by an
institution of higher education as part of the written
application material provided to the borrower, or as part of
the promissory note evidencing the loan, or on a separate
written form provided to the borrower. The disclosures shall
include--
[(1) the name of the institution of higher education,
and the address to which communications and payments
should be sent;
[(2) the principal amount of the loan;
[(3) the amount of any charges collected by the
institution at or prior to the disbursal of the loan
and whether such charges are deducted from the proceeds
of the loan or paid separately by the borrower;
[(4) the stated interest rate on the loan;
[(5) the yearly and cumulative maximum amounts that
may be borrowed;
[(6) an explanation of when repayment of the loan
will be required and when the borrower will be
obligated to pay interest that accrues on the loan;
[(7) a statement as to the minimum and maximum
repayment term which the institution may impose, and
the minimum monthly payment required by law and a
description of any penalty imposed as a consequence of
default, such as liability for expenses reasonably
incurred in attempts by the Secretary or institutions
to collect on a loan;
[(8) a statement of the total cumulative balance,
including the loan applied for, owed by the student to
that lender, and an estimate of the projected monthly
payment, given such cumulative balance;
[(9) an explanation of any special options the
borrower may have for loan consolidation or other
refinancing of the loan;
[(10) a statement that the borrower has the right to
prepay all or part of the loan, at any time, without
penalty, a statement summarizing circumstances in which
repayment of the loan or interest that accrues on the
loan may be deferred, and a brief notice of the program
for repayment of loans, on the basis of military
service, pursuant to the Department of Defense
educational loan repayment program (10 U.S.C. 16302);
[(11) a definition of default and the consequences to
the borrower if the borrower defaults, together with a
statement that the disbursement of, and the default on,
a loan under this part, shall be reported to a consumer
reporting agency;
[(12) to the extent practicable, the effect of
accepting the loan on the eligibility of the borrower
for other forms of student assistance;
[(13) an explanation of any cost the borrower may
incur in the making or collection of the loan;
[(14) a notice and explanation regarding the end to
future availability of loans made under this part;
[(15) a notice and explanation that repayment and
forgiveness benefits available to borrowers of loans
made under part D are not available to borrowers
participating in the loan program under this part;
[(16) a notice and explanation regarding a borrower's
option to consolidate a loan made under this part into
a Federal Direct Loan under part D, including any
benefit of such consolidation;
[(17) with respect to new undergraduate Federal
Perkins loan borrowers, as described in section
461(b)(1)(A), a notice and explanation providing a
comparison of the interest rates of loans under this
part and part D and informing the borrower that the
borrower has reached the maximum annual borrowing limit
for which the borrower is eligible as referenced under
subparagraphs (A) and (D) of section 455(a)(2); and
[(18) with respect to current undergraduate Federal
Perkins loan borrowers, as described in section
461(b)(1)(B), a notice and explanation providing a
comparison of the interest rates of loans under this
part and part D and informing the borrower that the
borrower has reached the maximum annual borrowing limit
for which the borrower is eligible on Federal Direct
Stafford Loans as referenced under section
455(a)(2)(A).
[(b) Disclosure Required Prior to Repayment.--Each
institution of higher education shall enter into an agreement
with the Secretary under which the institution will, prior to
the start of the repayment period of the student borrower on
loans made under this part, disclose to the student borrower
the information required under this subsection. Any disclosure
required by this subsection may be made by an institution of
higher education either in a promissory note evidencing the
loan or loans or in a written statement provided to the
borrower. The disclosures shall include--
[(1) the name of the institution of higher education,
and the address to which communications and payments
should be sent;
[(2) the scheduled date upon which the repayment
period is to begin;
[(3) the estimated balance owed by the borrower on
the loan or loans covered by the disclosure as of the
scheduled date on which the repayment period is to
begin (including, if applicable, the estimated amount
of interest to be capitalized);
[(4) the stated interest rate on the loan or loans,
or the combined interest rate of loans with different
stated interest rates;
[(5) the nature of any fees which may accrue or be
charged to the borrower during the repayment period;
[(6) the repayment schedule for all loans covered by
the disclosure including the date the first installment
is due, and the number, amount, and frequency of
required payments;
[(7) an explanation of any special options the
borrower may have for loan consolidation or other
refinancing of the loan;
[(8) the projected total of interest charges which
the borrower will pay on the loan or loans, assuming
that the borrower makes payments exactly in accordance
with the repayment schedule; and
[(9) a statement that the borrower has the right to
prepay all or part of the loan or loans covered by the
disclosure at any time without penalty.
[(c) Costs and Effects of Disclosures.--Such information
shall be available without cost to the borrower. The failure of
an eligible institution to provide information as required by
this section shall not (1) relieve a borrower of the obligation
to repay a loan in accordance with its terms, (2) provide a
basis for a claim for civil damages, or (3) be deemed to
abrogate the obligation of the Secretary to make payments with
respect to such loan.
[SEC. 464. TERMS OF LOANS.
[(a) Terms and Conditions.--(1) Loans from any student loan
fund established pursuant to an agreement under section 463 to
any student by any institution shall, subject to such
conditions, limitations, and requirements as the Secretary
shall prescribe by regulation, be made on such terms and
conditions as the institution may determine.
[(2)(A) Except as provided in paragraph (4), the total of
loans made to a student in any academic year or its equivalent
by an institution of higher education from a loan fund
established pursuant to an agreement under this part shall not
exceed--
[(i) $5,500, in the case of a student who has not
successfully completed a program of undergraduate
education; or
[(ii) $8,000, in the case of a graduate or
professional student (as defined in regulations issued
by the Secretary).
[(B) Except as provided in paragraph (4), the aggregate
unpaid principal amount for all loans made to a student by
institutions of higher education from loan funds established
pursuant to agreements under this part may not exceed--
[(i) $60,000, in the case of any graduate or
professional student (as defined by regulations issued
by the Secretary, and including any loans from such
funds made to such person before such person became a
graduate or professional student);
[(ii) $27,500, in the case of a student who has
successfully completed 2 years of a program of
education leading to a bachelor's degree but who has
not completed the work necessary for such a degree
(determined under regulations issued by the Secretary),
and including any loans from such funds made to such
person before such person became such a student; and
[(iii) $11,000, in the case of any other student.
[(3) Regulations of the Secretary under paragraph (1) shall
be designed to prevent the impairment of the capital student
loan funds to the maximum extent practicable and with a view
toward the objective of enabling the student to complete his
course of study.
[(4) In the case of a program of study abroad that is
approved for credit by the home institution at which a student
is enrolled and that has reasonable costs in excess of the home
institution's budget, the annual and aggregate loan limits for
the student may exceed the amounts described in paragraphs
(2)(A) and (2)(B) by 20 percent.
[(b) Demonstration of Need and Eligibility Required.--(1) A
loan from a student loan fund assisted under this part may be
made only to a student who demonstrates financial need in
accordance with part F of this title, who meets the
requirements of section 484, and who provides the institution
with the student's drivers license number, if any, at the time
of application for the loan. A student who is in default on a
loan under this part shall not be eligible for an additional
loan under this part unless such loan meets one of the
conditions for exclusion under section 462(g)(1)(E).
[(2) If the institution's capital contribution under section
462 is directly or indirectly based in part on the financial
need demonstrated by students who are (A) attending the
institution less than full time, or (B) independent students,
then a reasonable portion of the loans made from the
institution's student loan fund containing the contribution
shall be made available to such students.
[(c) Contents of Loan Agreement.--(1) Any agreement between
an institution and a student for a loan from a student loan
fund assisted under this part--
[(A) shall be evidenced by note or other written
instrument which, except as provided in paragraph (2),
provides for repayment of the principal amount of the
loan, together with interest thereon, in equal
installments (or, if the borrower so requests, in
graduated periodic installments determined in
accordance with such schedules as may be approved by
the Secretary) payable quarterly, bimonthly, or
monthly, at the option of the institution, over a
period beginning nine months after the date on which
the student ceases to carry, at an institution of
higher education or a comparable institution outside
the United States approved for this purpose by the
Secretary, at least one-half the normal full-time
academic workload, and ending 10 years and 9 months
after such date except that such period may begin
earlier than 9 months after such date upon the request
of the borrower;
[(B) shall include provision for acceleration of
repayment of the whole, or any part, of such loan, at
the option of the borrower;
[(C)(i) may provide, at the option of the
institution, in accordance with regulations of the
Secretary, that during the repayment period of the
loan, payments of principal and interest by the
borrower with respect to all outstanding loans made to
the student from a student loan fund assisted under
this part shall be at a rate equal to not less than $40
per month, except that the institution may, subject to
such regulations, permit a borrower to pay less than
$40 per month for a period of not more than one year
where necessary to avoid hardship to the borrower, but
without extending the 10-year maximum repayment period
provided for in subparagraph (A) of this paragraph; and
[(ii) may provide that the total payments by a
borrower for a monthly or similar payment period with
respect to the aggregate of all loans held by the
institution may, when the amount of a monthly or other
similar payment is not a multiple of $5, be rounded to
the next highest whole dollar amount that is a multiple
of $5;
[(D) shall provide that the loan shall bear interest,
on the unpaid balance of the loan, at the rate of 5
percent per year in the case of any loan made on or
after October 1, 1981, except that no interest shall
accrue (i) prior to the beginning date of repayment
determined under paragraph (2)(A)(i), or (ii) during
any period in which repayment is suspended by reason of
paragraph (2);
[(E) shall provide that the loan shall be made
without security and without endorsement;
[(F) shall provide that the liability to repay the
loan shall be cancelled--
[(i) upon the death of the borrower;
[(ii) if the borrower becomes permanently and
totally disabled as determined in accordance
with regulations of the Secretary;
[(iii) if the borrower is unable to engage in
any substantial gainful activity by reason of
any medically determinable physical or mental
impairment that can be expected to result in
death, has lasted for a continuous period of
not less than 60 months, or can be expected to
last for a continuous period of not less than
60 months; or
[(iv) if the borrower is determined by the
Secretary of Veterans Affairs to be
unemployable due to a service-connected
disability;
[(G) shall provide that no note or evidence of
obligation may be assigned by the lender, except upon
the transfer of the borrower to another institution
participating under this part (or, if not so
participating, is eligible to do so and is approved by
the Secretary for such purpose), to such institution,
and except as necessary to carry out section 463(a)(6);
[(H) pursuant to regulations of the Secretary, shall
provide for an assessment of a charge with respect to
the loan for failure of the borrower to pay all or part
of an installment when due, which shall include the
expenses reasonably incurred in attempting collection
of the loan, to the extent permitted by the Secretary,
except that no charge imposed under this subparagraph
shall exceed 20 percent of the amount of the monthly
payment of the borrower; and
[(I) shall contain a notice of the system of
disclosure of information concerning default on such
loan to consumer reporting agencies under section
463(c).
[(2)(A) No repayment of principal of, or interest on, any
loan from a student loan fund assisted under this part shall be
required during any period--
[(i) during which the borrower--
[(I) is pursuing at least a half-time course
of study as determined by an eligible
institution; or
[(II) is pursuing a course of study pursuant
to a graduate fellowship program approved by
the Secretary, or pursuant to a rehabilitation
training program for disabled individuals
approved by the Secretary,
except that no borrower shall be eligible for a
deferment under this clause, or loan made under this
part while serving in a medical internship or residency
program;
[(ii) not in excess of 3 years during which the
borrower is seeking and unable to find full-time
employment;
[(iii) during which the borrower--
[(I) is serving on active duty during a war
or other military operation or national
emergency; or
[(II) is performing qualifying National Guard
duty during a war or other military operation
or national emergency,
and for the 180-day period following the demobilization
date for the service described in subclause (I) or
(II);
[(iv) not in excess of 3 years for any reason which
the lender determines, in accordance with regulations
prescribed by the Secretary under section 435(o), has
caused or will cause the borrower to have an economic
hardship; or
[(v) during which the borrower is engaged in service
described in section 465(a)(2);
and provides that any such period shall not be included in
determining the 10-year period described in subparagraph (A) of
paragraph (1).
[(B) No repayment of principal of, or interest on, any loan
for any period described in subparagraph (A) shall begin until
6 months after the completion of such period.
[(C) An individual with an outstanding loan balance who meets
the eligibility criteria for a deferment described in
subparagraph (A) as in effect on the date of enactment of this
subparagraph shall be eligible for deferment under this
paragraph notwithstanding any contrary provision of the
promissory note under which the loan or loans were made, and
notwithstanding any amendment (or effective date provision
relating to any amendment) to this section made prior to the
date of such deferment.
[(3)(A) The Secretary is authorized, when good cause is
shown, to extend, in accordance with regulations, the 10-year
maximum repayment period provided for in subparagraph (A) of
paragraph (1) with respect to individual loans.
[(B) Pursuant to uniform criteria established by the
Secretary, the repayment period for any student borrower who
during the repayment period is a low-income individual may be
extended for a period not to exceed 10 years and the repayment
schedule may be adjusted to reflect the income of that
individual.
[(4) The repayment period for a loan made under this part
shall begin on the day immediately following the expiration of
the period, specified in paragraph (1)(A), after the student
ceases to carry the required academic workload, unless the
borrower requests and is granted a repayment schedule that
provides for repayment to commence at an earlier point in time,
and shall exclude any period of authorized deferment,
forbearance, or cancellation.
[(5) The institution may elect--
[(A) to add the amount of any charge imposed under
paragraph (1)(H) to the principal amount of the loan as
of the first day after the day on which the installment
was due and to notify the borrower of the assessment of
the charge; or
[(B) to make the amount of the charge payable to the
institution not later than the due date of the next
installment.
[(6) Requests for deferment of repayment of loans under this
part by students engaged in graduate or post-graduate
fellowship-supported study (such as pursuant to a Fulbright
grant) outside the United States shall be approved until
completion of the period of the fellowship.
[(7) There shall be excluded from the 9-month period that
begins on the date on which a student ceases to carry at least
one-half the normal full-time academic workload (as described
in paragraph (1)(A)) any period not to exceed 3 years during
which a borrower who is a member of a reserve component of the
Armed Forces named in section 10101 of title 10, United States
Code, is called or ordered to active duty for a period of more
than 30 days (as defined in section 101(d)(2) of such title).
Such period of exclusion shall include the period necessary to
resume enrollment at the borrower's next available regular
enrollment period.
[(d) Availability of Loan Fund to All Eligible Students.--An
agreement under this part for payment of Federal capital
contributions shall include provisions designed to make loans
from the student loan fund established pursuant to such
agreement reasonably available (to the extent of the available
funds in such fund) to all eligible students in such
institutions in need thereof.
[(e) Forbearance.--(1) The Secretary shall ensure that, as
documented in accordance with paragraph (2), an institution of
higher education shall grant a borrower forbearance of
principal and interest or principal only, renewable at 12-month
intervals for a period not to exceed 3 years, on such terms as
are otherwise consistent with the regulations issued by the
Secretary and agreed upon in writing by the parties to the
loan, if--
[(A) the borrower's debt burden equals or exceeds 20
percent of such borrower's gross income;
[(B) the institution determines that the borrower
should qualify for forbearance for other reasons; or
[(C) the borrower is eligible for interest payments
to be made on such loan for service in the Armed Forces
under section 2174 of title 10, United States Code,
and, pursuant to that eligibility, the interest on such
loan is being paid under subsection (j), except that
the form of a forbearance under this paragraph shall be
a temporary cessation of all payments on the loan other
than payments of interest on the loan that are made
under subsection (j).
[(2) For the purpose of paragraph (1), the terms of
forbearance agreed to by the parties shall be documented by--
[(A) confirming the agreement of the borrower by
notice to the borrower from the institution of higher
education; and
[(B) recording the terms in the borrower's file.
[(f) Special Repayment Rule Authority.--(1) Subject to such
restrictions as the Secretary may prescribe to protect the
interest of the United States, in order to encourage repayment
of loans made under this part which are in default, the
Secretary may, in the agreement entered into under this part,
authorize an institution of higher education to compromise on
the repayment of such defaulted loans in accordance with
paragraph (2). The Federal share of the compromise repayment
shall bear the same relation to the institution's share of such
compromise repayment as the Federal capital contribution to the
institution's loan fund under this part bears to the
institution's capital contribution to such fund.
[(2) No compromise repayment of a defaulted loan as
authorized by paragraph (1) may be made unless the student
borrower pays--
[(A) 90 percent of the loan under this part;
[(B) the interest due on such loan; and
[(C) any collection fees due on such loan;
in a lump sum payment.
[(g) Discharge.--
[(1) In general.--If a student borrower who received
a loan made under this part on or after January 1,
1986, is unable to complete the program in which such
student is enrolled due to the closure of the
institution, then the Secretary shall discharge the
borrower's liability on the loan (including the
interest and collection fees) and shall subsequently
pursue any claim available to such borrower against the
institution and the institution's affiliates and
principals, or settle the loan obligation pursuant to
the financial responsibility standards described in
section 498(c).
[(2) Assignment.--A borrower whose loan has been
discharged pursuant to this subsection shall be deemed
to have assigned to the United States the right to a
loan refund in an amount that does not exceed the
amount discharged against the institution and the
institution's affiliates and principals.
[(3) Eligibility for additional assistance.--The
period during which a student was unable to complete a
course of study due to the closing of the institution
shall not be considered for purposes of calculating the
student's period of eligibility for additional
assistance under this title.
[(4) Special rule.--A borrower whose loan has been
discharged pursuant to this subsection shall not be
precluded, because of that discharge, from receiving
additional grant, loan, or work assistance under this
title for which the borrower would be otherwise
eligible (but for the default on the discharged loan).
The amount discharged under this subsection shall be
treated as an amount canceled under section 465(a).
[(5) Reporting.--The Secretary or institution, as the
case may be, shall report to consumer reporting
agencies with respect to loans that have been
discharged pursuant to this subsection.
[(h) Rehabilitation of Loans.--
[(1) Rehabilitation.--
[(A) In general.--If the borrower of a loan
made under this part who has defaulted on the
loan makes 9 on-time, consecutive, monthly
payments of amounts owed on the loan, as
determined by the institution, or by the
Secretary in the case of a loan held by the
Secretary, the loan shall be considered
rehabilitated, and the institution that made
that loan (or the Secretary, in the case of a
loan held by the Secretary) shall request that
any consumer reporting agency to which the
default was reported remove the default from
the borrower's credit history.
[(B) Comparable conditions.--As long as the
borrower continues to make scheduled repayments
on a loan rehabilitated under this paragraph,
the rehabilitated loan shall be subject to the
same terms and conditions, and qualify for the
same benefits and privileges, as other loans
made under this part.
[(C) Additional assistance.--The borrower of
a rehabilitated loan shall not be precluded by
section 484 from receiving additional grant,
loan, or work assistance under this title (for
which the borrower is otherwise eligible) on
the basis of defaulting on the loan prior to
such rehabilitation.
[(D) Limitations.--A borrower only once may
obtain the benefit of this paragraph with
respect to rehabilitating a loan under this
part.
[(2) Restoration of eligibility.--If the borrower of
a loan made under this part who has defaulted on that
loan makes 6 ontime, consecutive, monthly payments of
amounts owed on such loan, the borrower's eligibility
for grant, loan, or work assistance under this title
shall be restored to the extent that the borrower is
otherwise eligible. A borrower only once may obtain the
benefit of this paragraph with respect to restored
eligibility.
[(i) Incentive Repayment Program.--
[(1) In general.--Each institution of higher
education may establish, with the approval of the
Secretary, an incentive repayment program designed to
reduce default and to replenish student loan funds
established under this part. Each such incentive
repayment program may--
[(A) offer a reduction of the interest rate
on a loan on which the borrower has made 48
consecutive, monthly repayments, but in no
event may the rate be reduced by more than 1
percent;
[(B) provide for a discount on the balance
owed on a loan on which the borrower pays the
principal and interest in full prior to the end
of the applicable repayment period, but in no
event may the discount exceed 5 percent of the
unpaid principal balance due on the loan at the
time the early repayment is made; and
[(C) include such other incentive repayment
options as the institution determines will
carry out the objectives of this subsection.
[(2) Limitation.--No incentive repayment option under
an incentive repayment program authorized by this
subsection may be paid for with Federal funds,
including any Federal funds from the student loan fund,
or with institutional funds from the student loan fund.
[(j) Armed Forces Student Loan Interest Payment Program.--
[(1) Authority.--Using funds received by transfer to
the Secretary under section 2174 of title 10, United
States Code, for the payment of interest on a loan made
under this part to a member of the Armed Forces, the
Secretary shall pay the interest on the loan as due for
a period not in excess of 36 consecutive months. The
Secretary may not pay interest on such a loan out of
any funds other than funds that have been so
transferred.
[(2) Forbearance.--During the period in which the
Secretary is making payments on a loan under paragraph
(1), the institution of higher education shall grant
the borrower forbearance in accordance with subsection
(e)(1)(C).
[(k) The Secretary may develop such additional safeguards as
the Secretary determines necessary to prevent fraud and abuse
in the cancellation of liability under subsection (c)(1)(F).
Notwithstanding subsection (c)(1)(F), the Secretary may
promulgate regulations to resume collection on loans cancelled
under subsection (c)(1)(F) in any case in which--
[(1) a borrower received a cancellation of liability
under subsection (c)(1)(F) and after the cancellation
the borrower--
[(A) receives a loan made, insured, or
guaranteed under this title; or
[(B) has earned income in excess of the
poverty line; or
[(2) the Secretary determines necessary.
[SEC. 465. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.
[(a) Cancellation of Percentage of Debt Based on Years of
Qualifying Service.--(1) The percent specified in paragraph (3)
of this subsection of the total amount of any loan made after
June 30, 1972, from a student loan fund assisted under this
part shall be canceled for each complete year of service after
such date by the borrower under circumstances described in
paragraph (2).
[(2) Loans shall be canceled under paragraph (1) for
service--
[(A) as a full-time teacher for service in an
academic year (including such a teacher employed by an
educational service agency)--
[(i) in a public or other nonprofit private
elementary school or secondary school, which,
for the purpose of this paragraph and for that
year--
[(I) has been determined by the
Secretary (pursuant to regulations of
the Secretary and after consultation
with the State educational agency of
the State in which the school is
located) to be a school in which the
number of children meeting a measure of
poverty under section 1113(a)(5) of the
Elementary and Secondary Education Act
of 1965, exceeds 30 percent of the
total number of children enrolled in
such school; and
[(II) is in the school district of a
local educational agency which is
eligible in such year for assistance
pursuant to part A of title I of the
Elementary and Secondary Education Act
of 1965; or
[(ii) in one or more public, or nonprofit
private, elementary schools or secondary
schools or locations operated by an educational
service agency that have been determined by the
Secretary (pursuant to regulations of the
Secretary and after consultation with the State
educational agency of the State in which the
educational service agency operates) to be a
school or location at which the number of
children taught who meet a measure of poverty
under section 1113(a)(5) of the Elementary and
Secondary Education Act of 1965, exceeds 30
percent of the total number of children taught
at such school or location;
[(B) as a full-time staff member in a preschool
program carried on under the Head Start Act, or in a
prekindergarten or child care program that is licensed
or regulated by the State, that is operated for a
period which is comparable to a full school year in the
locality if the salary of such staff member is not more
than the salary of a comparable employee of the local
educational agency;
[(C) as a full-time special education teacher,
including teachers of infants, toddlers, children, or
youth with disabilities in a public or other nonprofit
elementary or secondary school system, including a
system administered by an educational service agency,
or as a full-time qualified professional provider of
early intervention services in a public or other
nonprofit program under public supervision by the lead
agency as authorized in section 635(a)(10) of the
Individuals with Disabilities Education Act;
[(D) as a member of the Armed Forces of the United
States, for service that qualifies for special pay
under section 310, or paragraph (1) or (3) of section
351(a), of title 37, United States Code, as an area of
hostilities;
[(E) as a volunteer under the Peace Corps Act or a
volunteer under the Domestic Volunteer Service Act of
1973;
[(F) as a full-time law enforcement officer or
corrections officer for service to local, State, or
Federal law enforcement or corrections agencies, or as
a full-time attorney employed in a defender
organization established in accordance with section
3006A(g)(2)of title 18, United States Code;
[(G) as a full-time teacher of mathematics, science,
foreign languages, bilingual education, or any other
field of expertise where the State educational agency
determines there is a shortage of qualified teachers;
[(H) as a full-time nurse or medical technician
providing health care services;
[(I) as a full-time employee of a public or private
nonprofit child or family service agency who is
providing, or supervising the provision of, services to
high-risk children who are from low-income communities
and the families of such children;
[(J) as a full-time fire fighter for service to a
local, State, or Federal fire department or fire
district;
[(K) as a full-time faculty member at a Tribal
College or University, as that term is defined in
section 316;
[(L) as a librarian, if the librarian has a master's
degree in library science and is employed in--
[(i) an elementary school or secondary school
that is eligible for assistance under part A of
title I of the Elementary and Secondary
Education Act of 1965; or
[(ii) a public library that serves a
geographic area that contains one or more
schools eligible for assistance under part A of
title I of the Elementary and Secondary
Education Act of 1965; or
[(M) as a full-time speech language pathologist, if
the pathologist has a masters degree and is working
exclusively with schools that are eligible for
assistance under title I of the Elementary and
Secondary Education Act of 1965.
For the purpose of this paragraph, the term ``children with
disabilities'' has the meaning set forth in section 602 of the
Individuals with Disabilities Education Act.
[(3)(A) The percent of a loan which shall be canceled under
paragraph (1) of this subsection is--
[(i) in the case of service described in subparagraph
(A), (C), (D), (F), (G), (H), (I), (J), (K), (L), or
(M) of paragraph (2), at the rate of 15 percent for the
first or second year of such service, 20 percent for
the third or fourth year of such service, and 30
percent for the fifth year of such service;
[(ii) in the case of service described in
subparagraph (B) of paragraph (2), at the rate of 15
percent for each year of such service; or
[(iii) in the case of service described in
subparagraph (E) of paragraph (2) at the rate of 15
percent for the first or second year of such service
and 20 percent for the third or fourth year of such
service.
[(B) If a portion of a loan is canceled under this subsection
for any year, the entire amount of interest on such loan which
accrues for such year shall be canceled.
[(C) Nothing in this subsection shall be construed to
authorize refunding of any repayment of a loan.
[(4) For the purpose of this subsection, the term ``year''
where applied to service as a teacher means academic year as
defined by the Secretary.
[(5) The amount of a loan, and interest on a loan, which is
canceled under this section shall not be considered income for
purposes of the Internal Revenue Code of 1986.
[(6) No borrower may, for the same volunteer service, receive
a benefit under both this section and subtitle D of title I of
the National and Community Service Act of 1990 (42 U.S.C. 12601
et seq.).
[(7) An individual with an outstanding loan obligation under
this part who performs service of any type that is described in
paragraph (2) as in effect on the date of enactment of this
paragraph shall be eligible for cancellation under this section
for such service notwithstanding any contrary provision of the
promissory note under which the loan or loans were made, and
notwithstanding any amendment (or effective date provision
relating to any amendment) to this section made prior to the
date of such service.
[(b) Reimbursement for Cancellation.--The Secretary shall pay
to each institution for each fiscal year an amount equal to the
aggregate of the amounts of loans from its student loan fund
which are canceled pursuant to this section for such year,
minus an amount equal to the aggregate of the amounts of any
such loans so canceled which were made from Federal capital
contributions to its student loan fund provided by the
Secretary under section 468. None of the funds appropriated
pursuant to section 461(b) shall be available for payments
pursuant to this subsection. To the extent feasible, the
Secretary shall pay the amounts for which any institution
qualifies under this subsection not later than 3 months after
the institution files an institutional application for campus-
based funds.
[(c) Special Rules.--
[(1) List.--If the list of schools in which a teacher
may perform service pursuant to subsection (a)(2)(A) is
not available before May 1 of any year, the Secretary
may use the list for the year preceding the year for
which the determination is made to make such service
determination.
[(2) Continuing eligibility.--Any teacher who
performs service in a school which--
[(A) meets the requirements of subsection
(a)(2)(A) in any year; and
[(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be
eligible for loan cancellation pursuant to subsection
(a)(1) such subsequent years.
[SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.
[(a) In General.--Beginning October 1, 2017, there shall be a
capital distribution of the balance of the student loan fund
established under this part by each institution of higher
education as follows:
[(1) The Secretary shall first be paid an amount
which bears the same ratio to the balance in such fund
at the close of September 30, 2017, as the total amount
of the Federal capital contributions to such fund by
the Secretary under this part bears to the sum of such
Federal contributions and the institution's capital
contributions to such fund.
[(2) The remainder of such balance shall be paid to
the institution.
[(b) Distribution of Late Collections.--Beginning October 1,
2017, each institution with which the Secretary has made an
agreement under this part, shall pay to the Secretary the same
proportionate share of amounts received by this institution
after September 30, 2017, in payment of principal and interest
on student loans made from the student loan fund established
pursuant to such agreement (which amount shall be determined
after deduction of any costs of litigation incurred in
collection of the principal or interest on loans from the fund
and not already reimbursed from the fund or from such payments
of principal or interest), as was determined for the Secretary
under subsection (a).
[(c) Distribution of Excess Capital.--(1) Upon a finding by
the institution or the Secretary prior to October 1, 2017, that
the liquid assets of a student loan fund established pursuant
to an agreement under this part exceed the amount required for
loans or otherwise in the foreseeable future, and upon notice
to such institution or to the Secretary, as the case may be,
there shall be, subject to such limitations as may be included
in regulations of the Secretary or in such agreement, a capital
distribution from such fund. Such capital distribution shall be
made as follows:
[(A) The Secretary shall first be paid an amount
which bears the same ratio to the total to be
distributed as the Federal capital contributions by the
Secretary to the student loan fund prior to such
distribution bear to the sum of such Federal capital
contributions and the capital contributions to the fund
made by the institution.
[(B) The remainder of the capital distribution shall
be paid to the institution.
[(2) No finding that the liquid assets of a student loan fund
established under this part exceed the amount required under
paragraph (1) may be made prior to a date which is 2 years
after the date on which the institution of higher education
received the funds from such institution's allocation under
section 462.
[SEC. 467. COLLECTION OF DEFAULTED LOANS: PERKINS LOAN REVOLVING FUND.
[(a) Authority of Secretary To Collect Referred, Transferred,
or Assigned Loans.--With respect to any loan--
[(1) which was made under this part, and
[(2) which is referred, transferred, or assigned to
the Secretary by an institution with an agreement under
section 463(a),
the Secretary is authorized to attempt to collect such loan by
any means authorized by law for collecting claims of the United
States (including referral to the Attorney General for
litigation) and under such terms and conditions as the
Secretary may prescribe, including reimbursement for expenses
reasonably incurred in attempting such collection.
[(b) Collection of Referred, Transferred, or Assigned
Loans.--The Secretary shall continue to attempt to collect any
loan referred, transferred, or assigned under paragraph (4) or
(5) of section 463(a) until all appropriate collection efforts,
as determined by the Secretary, have been expended.
[SEC. 468. GENERAL AUTHORITY OF SECRETARY.
[In carrying out the provisions of this part, the Secretary
is authorized--
[(1) to consent to modification, with respect to rate
of interest, time of payment of any installment of
principal and interest or any portion thereof, or any
other provision of any note evidencing a loan which has
been made under this part;
[(2) to enforce, pay, compromise, waive, or release
any right, title, claim, lien, or demand, however
acquired, including any equity or any right of
redemption;
[(3) to conduct litigation in accordance with the
provisions of section 432(a)(2); and
[(4) to enter into a contract or other arrangement
with State or nonprofit agencies and, on a competitive
basis, with collection agencies for servicing and
collection of loans under this part.
[SEC. 469. DEFINITIONS.
[(a) Low-Income Communities.--For the purpose of this part,
the term ``low-income communities'' means communities in which
there is a high concentration of children eligible to be
counted under section 1124(c) of the Elementary and Secondary
Education Act of 1965.
[(b) High-Risk Children.--For the purposes of this part, the
term ``high-risk children'' means individuals under the age of
21 who are low-income or at risk of abuse or neglect, have been
abused or neglected, have serious emotional, mental, or
behavioral disturbances, reside in placements outside their
homes, or are involved in the juvenile justice system.
[(c) Infants, Toddlers, Children, and Youth With
Disabilities.--For purposes of this part, the term ``infants,
toddlers, children, and youth with disabilities'' means
children with disabilities and infants and toddlers with
disabilities as defined in sections 602 and 632, respectively,
of the Individuals with Disabilities Education Act, and the
term ``early intervention services'' has the meaning given the
term in section 632 of such Act.]
SEC. 461. PROGRAM AUTHORITY.
(a) In General.--There are hereby made available, in
accordance with the provisions of this part, such sums as may
be necessary to make loans to all eligible students (and the
eligible parents of such students) in attendance at
participating institutions of higher education selected by the
Secretary to enable such students to pursue their courses of
study at such institutions during the period beginning July 1,
2019. Loans made under this part shall be made by participating
institutions that have agreements with the Secretary to
originate loans.
(b) Designation.--The program established under this part
shall be referred to as the ``Federal ONE Loan Program''.
(c) ONE Loans.--Except as otherwise specified in this part,
loans made to borrowers under this part shall be known as
``Federal ONE Loans''.
SEC. 462. FUNDS FOR THE ORIGINATION OF ONE LOANS.
(a) In General.--The Secretary shall provide, on the basis of
eligibility of students at each participating institution, and
parents of such students, for such loans, funds for student and
Parent Loans under this part directly to an institution of
higher education that has an agreement with the Secretary under
section 464(a) to participate in the Federal ONE Loan Program
under this part and that also has an agreement with the
Secretary under section 464(b) to originate loans under this
part.
(b) Parallel Terms.--Subsections (b), (c), and (d) of section
452 shall apply to the loan program under this part in the same
manner that such subsections apply to the loan program under
part D.
SEC. 463. SELECTION OF INSTITUTIONS FOR PARTICIPATION AND ORIGINATION.
(a) General Authority.--The Secretary shall enter into
agreements pursuant to section 464(a) with institutions of
higher education to participate in the Federal ONE Loan Program
under this part, and agreements pursuant to section 464(b) with
institutions of higher education, to originate loans in such
program, for academic years beginning on or after July 1, 2019.
Such agreements for the academic year 2019-2020 shall, to the
extent feasible, be entered into not later than January 1,
2019.
(b) Selection Criteria and Procedure.--The application and
selection procedure for an institution of higher education
desiring to participate in the loan program under this part
shall be the application and selection procedure described in
section 453(b) for an institution of higher education desiring
to participate in the loan program under part D.
(c) Eligible Institutions.--The Secretary may not select an
institution of higher education for participation under this
part unless such institution is an eligible institution under
section 487(a).
SEC. 464. AGREEMENTS WITH INSTITUTIONS.
(a) Participation Agreements.--An agreement with any
institution of higher education for participation in the
Federal ONE Loan Program under this part shall--
(1) provide for the establishment and maintenance of
a direct student loan program at the institution under
which the institution will--
(A) identify eligible students who seek
student financial assistance at such
institution in accordance with section 484;
(B) provide a statement that certifies the
eligibility of any student to receive a loan
under this part that is not in excess of the
annual or aggregate limit applicable to such
loan, except that the institution may, in
exceptional circumstances identified by the
Secretary pursuant to section 454(a)(1)(C),
refuse to certify a statement that permits a
student to receive a loan under this part, if
the reason for such action is documented and
provided in written form to such student;
(C) set forth a schedule for disbursement of
the proceeds of the loan in installments,
consistent with the requirements of section
465(a); and
(D) provide timely and accurate information,
concerning the status of student borrowers (and
students on whose behalf parents borrow under
this part) while such students are in
attendance at the institution and concerning
any new information of which the institution
becomes aware for such students (or their
parents) after such borrowers leave the
institution, to the Secretary for the servicing
and collecting of loans made under this part;
(2) provide assurances that the institution will
comply with requirements established by the Secretary
relating to student loan information with respect to
loans made under this part;
(3) provide that the institution accepts
responsibility and financial liability stemming from
its failure to perform its functions pursuant to the
agreement;
(4) provide for the implementation of a quality
assurance system, as established by the Secretary and
developed in consultation with institutions of higher
education, to ensure that the institution is complying
with program requirements and meeting program
objectives; and
(5) provide that the institution will not charge any
fees of any kind, however described, to student or
parent borrowers for origination activities or the
provision of any information necessary for a student or
parent to receive a loan under this part, or any
benefits associated with such loan.
(b) Origination.--An agreement with any institution of higher
education for the origination of loans under this part shall--
(1) supplement the agreement entered into in
accordance with subsection (a);
(2) include provisions established by the Secretary
that are similar to the participation agreement
provisions described in paragraphs (2), (3), (4), and
(5) of subsection (a), as modified to relate to the
origination of loans by the institution;
(3) provide that the institution will originate loans
to eligible students and parents in accordance with
this part; and
(4) provide that the note or evidence of obligation
on the loan shall be the property of the Secretary.
(c) Withdrawal Procedures.--
(1) In general.--An institution of higher education
participating in the Federal ONE Loan Program under
this part may withdraw from the program by providing
written notice to the Secretary of the intent to
withdraw not less than 60 days before the intended date
of withdrawal.
(2) Date of withdrawal.--Except in cases in which the
Secretary and an institution of higher education agree
to an earlier date, the date of withdrawal from the
Federal ONE Loan Program under this part of an
institution of higher education shall be the later of--
(A) 60 days after the institution submits the
notice required under paragraph (1); or
(B) a date designated by the institution.
SEC. 465. DISBURSEMENT OF STUDENT LOANS, LOAN LIMITS, INTEREST RATES,
AND LOAN FEES.
(a) Requirements for Disbursement of Student Loans.--
(1) Multiple disbursement required.--
(A) Required disbursements.--The proceeds of
any loan made under this part that is made for
any period of enrollment shall be disbursed as
follows:
(i) The disbursement of the first
installment of proceeds shall, with
respect to any student other than a
student described in subparagraph
(B)(i), be made not more than 30 days
prior to the beginning of the period of
enrollment, and not later than 30 days
after the beginning of such period of
enrollment.
(ii) The disbursement of an
installment of proceeds shall be made
in substantially equal monthly or
weekly installments over the period of
enrollment for which the loan was made,
except that installments may be unequal
as necessary to permit the institution
to adjust for unequal costs (which may
include upfront costs such as tuition
and fees) incurred or estimated
financial assistance received by the
student, or based on the academic
progress of the student.
(B) Disbursement of credit balances.--
(i) Type of disbursement.--The credit
balances of any loan made under this
part that is made for any period of
enrollment shall be disbursed by--
(I) an electronic transfer of
funds to the borrower's
financial account;
(II) a check for the amount
payable to, and requiring the
endorsement of, the borrower;
(III) an access device in
accordance with clause (ii); or
(IV) a cash payment for which
the institution obtains a
receipt signed by the borrower.
(ii) Usage of access device.--An
institution may enter into an agreement
with a third-party servicer for the
delivery of funds awarded under this
part in which the third-party servicer
provides the borrower with an
unvalidated access device for accessing
credit balances of any loan if--
(I) the agreement provides
that the access device must
bear a prominent disclosure
informing the borrower that the
borrower is not required to use
such access device and open
such an account in order to
access the student's funds
under this part;
(II) the agreement provides
that the consent of the
borrower is obtained before the
access device is validated to
enable the student to access
the account;
(III) the agreement provides
for the protection of the
borrower against fraud; and
(IV) the institution
documents that it has conducted
a reasonable due diligence
review before entering into the
agreement, and will conduct
such a review at least every
two years to ensure that--
(aa) the fees
applicable to such
account are, considered
as a whole, below
prevailing market
rates; and
(bb) the terms and
conditions of such
account are otherwise
consistent with
prevailing market terms
and conditions.
(C) First year students.--
(i) In general.--The first
installment of the proceeds of any loan
made under this part that is made to a
student borrower who is entering the
first year of a program of
undergraduate education, and who has
not previously obtained a loan under
this part, shall not (regardless of the
amount of such loan or the duration of
the period of enrollment) be presented
by the institution of higher education
to the student for endorsement until 30
days after the borrower begins a course
of study, but may be delivered to the
eligible institution prior to the end
of that 30-day period.
(ii) Exemption.--An institution of
higher education in which each
educational program has a loan
repayment rate (as determined under
section 481B(c)) for the most recent
fiscal year for which data are
available that is greater than 60
percent shall be exempt from the
requirements of clause (i).
(2) Withdrawing of succeeding disbursements.--
(A) Withdrawing students.--In the case in
which the Secretary is informed by the borrower
or the institution that the borrower has ceased
to be enrolled before the disbursement of the
second or any succeeding installment, the
Secretary shall withhold such disbursement. Any
disbursement which is so withheld shall be
credited to the borrower's loan and treated as
a prepayment on the principal of the loan.
(B) Students receiving over-awards.--If the
sum of a disbursement for any borrower and the
other financial aid obtained by borrower
exceeds the amount of assistance for which the
borrower is eligible under this title, the
institution the borrower, or dependent student,
in the case of a parent borrower, is attending
shall withhold and return to the Secretary the
portion (or all) of such installment that
exceeds such eligible amount, except that
overawards permitted pursuant to section
443(b)(4) shall not be construed to be
overawards for purposes of this subparagraph.
Any portion (or all) of a disbursement
installment which is so returned shall be
credited to the borrower's loan and treated as
a prepayment on the principal of the loan.
(3) Exclusion of Consolidation and Foreign Study
Loans.--The provisions of this subsection shall not
apply in the case of a Federal ONE Consolidation Loan,
or a loan made to a student to cover the cost of
attendance in a program of study abroad approved by the
home eligible institution if each of the educational
programs of such home eligible institution has a loan
repayment rate (as calculated under section 481B(c))
for the most recent fiscal year for which data are
available of greater than 70 percent.
(4) Beginning of Period of Enrollment.--For purposes
of this subsection, a period of enrollment begins on
the first day that classes begin for the applicable
period of enrollment.
(b) Amount of loan.--
(1) In general.--The determination of the amount of a
loan disbursed by an eligible institution under this
section shall be the lesser of--
(A) an amount that is equal to the estimated
loan amount, as determined by the institution
by calculating--
(i) the estimated cost of attendance
at the institution; minus
(ii)(I) any estimated financial
assistance reasonably available to such
student, including assistance that the
student will receive from a Federal
grant, including a Federal Pell Grant,
a State grant, an institutional grant,
or a scholarship or grant from another
source, that is known to the
institution at the time the student's
determination of need is made; and
(II) in the case of a loan to a
parent, the amount of a loan awarded
under this part to the parent's child;
or
(B) the maximum Federal loan amount for which
such borrower is eligible in accordance with
paragraph (2).
(2) Loan limits.--
(A) Annual limits.--Except as provided under
subparagraph (B), (C), or (D), the amount of
loans made under this part that an eligible
student or parent borrower may borrow for an
academic year shall be as follows:
(i) Undergraduate students.--With
respect to enrollment in a program of
undergraduate education at an eligible
institution--
(I) in the case of a
dependent student--
(aa) who has not
successfully completed
the first year of a
program of
undergraduate
education, $7,500;
(bb) who has
successfully completed
such first year but has
not successfully
completed the remainder
of a program of
undergraduate
education, $8,500; and
(cc) who has
successfully completed
the first and second
years of a program of
undergraduate education
but has not
successfully completed
the remainder of such
program, $9,500;
(II) in the case of an
independent student, or a
dependent student whose parents
are unable to borrow a loan
under this part on behalf of
such student--
(aa) who has not
successfully completed
the first year of a
program of
undergraduate
education, $11,500;
(bb) who has
successfully completed
such first year but has
not successfully
completed the remainder
of a program of
undergraduate
education, $12,500; and
(cc) who has
successfully completed
the first and second
years of a program of
undergraduate education
but has not
successfully completed
the remainder of such
program, $14,500; and
(III) in the case of a
student who is enrolled in a
program of undergraduate
education that 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) or
(II), as applicable, as the
length of such program measured
in semester, trimester,
quarter, or clock hours bears
to one academic year.
(ii) Graduate or professional
students.--In the case of a graduate or
professional student for enrollment in
a program of graduate or professional
education at an eligible institution,
$28,500.
(iii) Parent borrowers.--In the case
of a parent borrowing a loan under this
part on behalf of a dependent student
for the student's enrollment in a
program of undergraduate education at
an eligible institution, $12,500 per
each such student.
(iv) Coursework for undergraduate
enrollment.--With respect to enrollment
in coursework specified in section
484(b)(3)(B) necessary for enrollment
in an undergraduate degree or
certificate program--
(I) in the case of a
dependent student, $2,625;
(II) in the case of a parent
borrowing a loan under this
part on behalf of a dependent
student for the student's
enrollment in such coursework,
$6,000; and
(III) in the case an
independent student, or a
dependent student whose parents
are unable to borrow a loan
under this part on behalf of
such student, $8,625.
(v) Coursework for graduate or
professional enrollment or teacher
employment.--With respect to the
enrollment of a student who has
obtained a baccalaureate degree in
coursework specified in section
484(b)(3)(B) necessary for enrollment
in a graduate or professional degree or
certificate program, or coursework
specified in section 484(b)(4)(B)
necessary for a professional credential
or certification from a State required
for employment as a teacher in an
elementary or secondary school, in the
case of a student (without regard to
whether the student is a dependent
student or dependent student), $12,500.
(B) Aggregate limits.--Except as provided
under subparagraph (C), (D), or (E), the
maximum aggregate amount of loans under this
part and parts B and D that an eligible student
or parent borrower may borrow shall be--
(i) for enrollment in a program of
undergraduate education at an eligible
institution, including for enrollment
in coursework described in clause (iv)
or (v) of subparagraph (A)--
(I) in the case of a
dependent student, $39,000;
(II) in the case of an
independent student, or an
dependent student whose parents
are unable to receive a loan
under this part on behalf of
such student, $60,250; and
(III) in the case of a parent
borrowing a loan under this
part on behalf of a dependent
student for the student's
enrollment in such a program,
$56,250 per each such student.
(ii) in the case of a graduate or
professional student for enrollment in
a program of graduate or professional
education at an eligible institution,
$150,000.
(C) Application of limits to borrowers with
part B or D loans.--
(i) Graduate or professional
students.--In the case of a graduate or
professional student who is not
described in subparagraph (E) and who
has received loans made under part B or
D for enrollment in a graduate or
professional program at an eligible
institution, the total amount of which
equal or exceed $28,500 as of the time
of disbursement, the student may
continue to borrow the amount of loans
under this part necessary to complete
such program without regard to the
aggregate limit under subparagraph
(B)(ii), except that the--
(I) amount of such loans
shall not exceed the annual
limits under subparagraph
(A)(ii) for any academic year
beginning after June 30, 2019;
and
(II) authority to borrow
loans in accordance with this
subclause shall terminate at
the end of the academic year
ending before September 30,
2024.
(ii) Parent borrowers.--In the case
of a parent borrower who has received
loans made under part B or D on behalf
of a dependent student for the
student's enrollment in a program of
undergraduate education at an eligible
institution, the total amount of which
equal or exceed $12,500 for such
student as of the time of disbursement,
the parent borrower may continue to
borrow the amount of loans under this
part necessary for such student to
complete such program without regard to
the aggregate limit under subparagraph
(B)(i)(III), except that the--
(I) amount of such loans
shall not exceed the annual
limits under subparagraph
(A)(iii) for any academic year
beginning after June 30, 2019;
and
(II) the authority to borrow
loans in accordance with this
subclause shall terminate at
the end of the academic year
ending before September 30,
2024.
(D) Institutional determined limits.--
(i) In general.--Notwithstanding any
other provision of this subsection, an
eligible institution (at the discretion
of a financial aid administrator at the
institution) may prorate or limit the
amount of a loan any student enrolled
in a program of study at that
institution may borrow under this part
for an academic year--
(I) if the institution, using
the most recently available
data from the Bureau of Labor
Statistics for the average
starting salary in the region
in which the institution is
located for typical occupations
pursued by graduates of such
program, can reasonably
demonstrate that student debt
levels are or would be
excessive for such program;
(II) in a case in which the
student is enrolled on a less
than full-time basis or the
student is enrolled for less
than the period of enrollment
to which the annual loan limit
applies under this subsection,
based on the student's
enrollment status;
(III) based on the credential
level (such as a degree,
certificate, or other
recognized educational
credential) that the student
would attain upon completion of
such program; or
(IV) based on the year of the
program for which the student
is seeking such loan.
(ii) Application to all students.--
Any proration or limiting of loan
amounts under clause (i) shall be
applied in the same manner to all
students enrolled in the institution or
program of study.
(iii) Increases for Individual
Students.--Upon the request of a
student whose loan amount for an
academic year has been prorated or
limited under clause (i), an eligible
institution (at the discretion of the
financial aid administrator at the
institution) may increase such loan
amount to an amount not exceeding the
annual loan amount applicable to such
student under this subparagraph for
such academic year if such student
demonstrates special circumstances or
exceptional need.
(E) Increases for certain graduate or
professional students.--
(i) Additional annual amounts.--
Subject to clause (iii) of this
subparagraph, in addition to the loan
amount for an academic year described
in subparagraph (A)(ii)--
(I) a graduate or
professional student who is
enrolled in a program of study
to become a doctor of
allopathic medicine, doctor of
osteopathic medicine, doctor of
dentistry, doctor of veterinary
medicine, doctor of optometry,
doctor of podiatric medicine,
doctor of naturopathic
medicine, or doctor of
naturopathy may borrow an
additional--
(aa) in the case of a
program with a 9-month
academic year, $20,000
for an academic year;
or
(bb) in the case of a
program with a 12-month
academic year, $26,667
for an academic year;
and
(II) a graduate or
professional student who is
enrolled in a program of study
to become a doctor of pharmacy,
doctor of chiropractic
medicine, or a physician's
assistant, or receive a
graduate degree in public
health, doctoral degree in
clinical psychology, or a
masters or doctoral degree in
health administration may
borrow an additional--
(aa) in the case of a
program with a 9-month
academic year, $12,500
for an academic year;
or
(bb) in the case of a
program with a 12-month
academic year, $16,667
for an academic year.
(ii) Aggregate limit.--Subject to
clause (iii) of this subparagraph, the
maximum aggregate amount of loans under
this part and parts B and D that a
student described in clause (i) may
borrow shall be $235,500.
(iii) Limitation.--In the case of a
graduate or professional student
described in clause (i) of this
subparagraph who has received loans
made under part B or D for enrollment
in a graduate or professional program
at an eligible institution, the total
amount of which equal or exceed $28,500
as of the time of disbursement, the
student may continue to borrow the
amount of loans under this part
necessary to complete such program
without regard to the aggregate limit
under clause (ii) of this subparagraph,
except that the--
(I) amount of such loans
shall not exceed the annual
limits under clause (i) of this
subparagraph for any academic
year beginning after June 30,
2019; and
(II) authority to borrow
loans in accordance with this
subclause shall terminate at
the end of the academic year
ending before September 30,
2024.
(c) Interest Rate Provisions for Federal ONE Loans.--
(1) Undergraduate One Loans.--For Federal ONE Loans
issued to undergraduate students, the applicable rate
of interest shall, for loans disbursed during any 12-
month period beginning on July 1 and ending on June 30,
be determined on the preceding June 1 and be equal to
the lesser of--
(A) a rate equal to the high yield of the 10-
year Treasury note auctioned at the final
auction held prior to such June 1 plus 2.05
percent; or
(B) 8.25 percent.
(2) Graduate and Professional one loans.--For Federal
ONE Loans issued to graduate or professional students,
the applicable rate of interest shall, for loans
disbursed during any 12-month period beginning on July
1 and ending on June 30, be determined on the preceding
June 1 and be equal to the lesser of--
(A) a rate equal to the high yield of the 10-
year Treasury note auctioned at the final
auction held prior to such June 1 plus 3.6
percent; or
(B) 9.5 percent.
(3) Parent one loans.--For Federal ONE Parent Loans,
the applicable rate of interest shall, for loans
disbursed during any 12-month period beginning on July
1 and ending on June 30, be determined on the preceding
June 1 and be equal to the lesser of--
(A) a rate equal to the high yield of the 10-
year Treasury note auctioned at the final
auction held prior to such June 1 plus 4.6
percent; or
(B) 10.5 percent.
(4) Consolidation loans.--Any Federal ONE
Consolidation Loan for which the application is
received on or after July 1, 2019, shall bear interest
at an annual rate on the unpaid principal balance of
the loan that is equal to the weighted average of the
interest rates on the loans consolidated, rounded to
the nearest higher one-eighth of one percent.
(5) Publication.--The Secretary shall determine the
applicable rates of interest under this subsection
after consultation with the Secretary of the Treasury
and shall publish such rate in the Federal Register as
soon as practicable after the date of determination.
(6) Rate.--The applicable rate of interest determined
under this subsection for a loan under this part shall
be fixed for the period of the loan.
(d) Prohibition on Certain Repayment Incentives.--
Notwithstanding any other provision of this part, the Secretary
is prohibited from authorizing or providing any repayment
incentive or subsidy not otherwise authorized under this part
to encourage on-time repayment of a loan under this part,
including any reduction in the interest paid by a borrower of
such a loan, except that the Secretary may provide for an
interest rate reduction of not more than 0.25 percentage points
for a borrower who agrees to have payments on such a loan
automatically debited from a bank account.
(e) Loan Fee.--The Secretary shall not charge the borrower of
a loan made under this part an origination fee.
(f) Armed Forces Student Loan Interest Payment Program.--
(1) Authority.--Using funds received by transfer to
the Secretary under section 2174 of title 10, United
States Code, for the payment of interest on a loan made
under this part to a member of the Armed Forces, the
Secretary shall pay the interest on the loan as due for
a period not in excess of 36 consecutive months. The
Secretary may not pay interest on such a loan out of
any funds other than funds that have been so
transferred.
(2) Deferment.--During the period in which the
Secretary is making payments on a loan under paragraph
(1), the Secretary shall grant the borrower
administrative deferment, in the form of a temporary
cessation of all payments on the loan other than the
payments of interest on the loan that are made under
that paragraph.
(g) No Accrual of Interest for Active Duty Service Members.--
(1) In general.--Notwithstanding any other provision
of this part and in accordance with paragraphs (2) and
(4), interest shall not accrue for an eligible military
borrower on a loan made under this part.
(2) Consolidation loans.--In the case of any
consolidation loan made under this part, interest shall
not accrue pursuant to this subsection only on such
portion of such loan as was used to repay a loan made
under this part or a loan made under part D for which
the first disbursement was made on or after October 1,
2008, and before July 1, 2019.
(3) Eligible military borrower.--In this subsection,
the term ``eligible military borrower'' means an
individual who--
(A)(i) is serving on active duty during a war
or other military operation or national
emergency; or
(ii) is performing qualifying National Guard
duty during a war or other military operation
or national emergency; and
(B) is serving in an area of hostilities in
which service qualifies for special pay under
section 310 of title 37, United States Code.
(4) Limitation.--An individual who qualifies as an
eligible military borrower under this subsection may
receive the benefit of this subsection for not more
than 60 months.
SEC. 466. REPAYMENT.
(a) Repayment Period; Commencement of Repayment.--
(1) Repayment period.--
(A) In general.--In the case of a Federal ONE
Loan (other than a Federal ONE Consolidation
Loan or a Federal ONE Parent Loan)--
(i) subject to clause (ii), the
repayment period shall--
(I) exclude any period of
authorized deferment under
section 469A; and
(II) begin the day after 6
months after the date the
student ceases to carry at
least one-half the normal full-
time academic workload (as
determined by the institution);
and
(ii) interest shall begin to accrue
or be paid by the borrower on the day
the loan is disbursed.
(B) Consolidation and Parent Loans.--In the
case of a Federal ONE Consolidation Loan or a
Federal ONE Parent Loan, the repayment period
shall--
(i) exclude any period of authorized
deferment; and
(ii) begin--
(I) on the day the loan is
disbursed; or
(II) if the loan is disbursed
in multiple installments, on
the day of the last such
disbursement.
(C) Active duty exclusion.--There shall be
excluded from the 6-month period that begins on
the date on which a student ceases to carry at
least one-half the normal full-time academic
workload as described in subparagraph (A) any
period not to exceed 3 years during which a
borrower who is a member of a reserve component
of the Armed Forces named in section 10101 of
title 10, United States Code, is called or
ordered to active duty for a period of more
than 30 days (as defined in section 101(d)(2)
of such title). Such period of exclusion shall
include the period necessary to resume
enrollment at the borrower's next available
regular enrollment period.
(2) Payment of Principal and Interest.--
(A) Commencement of repayment.--Repayment of
principal on loans made under this part shall
begin at the beginning of the repayment period
described in paragraph (1).
(B) Capitalization of interest.--
(i) In general.--Interest on loans
made under this part for which payments
of principal are not required during
the 6-month period described in
paragraph (1)(A)(i)(II) or for which
payments are deferred under section
469A shall--
(I) be paid monthly or
quarterly; or
(II) be added to the
principal amount of the loan
only--
(aa) when the loan
enters repayment;
(bb) at the
expiration of a the 6-
month period described
in paragraph
(1)(A)(i)(II);
(cc) at the
expiration of a period
of deferment, unless
otherwise exempted; or
(dd) when the
borrower defaults.
(ii) Maximum aggregate limit.--
Interest capitalized shall not be
deemed to exceed the amount equal to
the maximum aggregate limit of the loan
under section 465(b).
(C) Notice.--Not less than 60 days, and again
not less than 30 days, prior to the anticipated
commencement of the repayment period for a
Federal ONE Loan, the Secretary shall provide
notice to the borrower--
(i) that interest will accrue before
repayment begins;
(ii) that interest will be added to
the principal amount of the loan in the
cases described in subparagraph
(B)(i)(II); and
(iii) of the borrower's option to
begin loan repayment prior to such
repayment period.
(b) Repayment Amount.--
(1) In general.--The total of the payments by a
borrower, except as otherwise provided by an income-
based repayment plan under subsection (d), during any
year of any repayment period with respect to the
aggregate amount of all loans made under this part to
the borrower shall not (unless the borrower and the
Secretary otherwise agree), be less than $600 or the
balance of all such loans (together with interest
thereon), whichever amount is less (but in no instance
less than the amount of interest due and payable,
notwithstanding any repayment plan described in
subsection (c)).
(2) Amortization.--
(A) Interest rate.--The amount of the
periodic payment and the repayment schedule for
a loan made under this part shall be
established by assuming an interest rate equal
to the applicable rate of interest at the time
of the first disbursement of the loan.
(B) Adjustment to repayment amount.--The note
or other written evidence of a loan under this
part shall require that the amount of the
periodic payment will be adjusted annually in
order to reflect adjustments in--
(i) interest rates occurring as a
consequence of variable rate loans
under parts B or D paid in conjunction
with Federal ONE Loans under subsection
(d)(1)(B)(i); or
(ii) principal occurring as a
consequence of interest capitalization
under subsection (a)(2)(B).
(c) Repayment Plans.--
(1) Design and selection.--Not more than 6 months
prior to the date on which a borrower's first payment
on a loan made under this part is due, the Secretary
shall offer the borrower two plans for repayment of
such loan, including principal and interest on the
loan. The borrower shall be entitled to accelerate,
without penalty, repayment on the borrower's loans
under this part. The borrower may choose--
(A) a standard repayment plan with a fixed
monthly repayment amount paid over a fixed
period of time, not to exceed 10 years; or
(B) an income-based repayment plan under
subsection (d).
(2) Selection by secretary.--If a borrower of a loan
made under this part does not select a repayment plan
described in paragraph (1), the Secretary shall provide
the borrower with the repayment plan described in
paragraph (1)(A).
(3) Changes in selections.--
(A) In general.--Subject to subparagraph (B),
the borrower of a loan made under this part may
change the borrower's selection of a repayment
plan under paragraph (1), or the Secretary's
selection of a plan for the borrower under
paragraph (2), as the case may be, under such
terms and conditions as may be established by
the Secretary, except that the Secretary may
not establish any terms or conditions with
respect to whether a borrower may change the
borrower's repayment plan. Nothing in this
subsection shall prohibit the Secretary from
encouraging struggling borrowers from enrolling
in the income-driven repayment plan described
in section 466(d).
(B) Same repayment plan required.--All loans
made under this part to a borrower shall be
repaid under the same repayment plan under
paragraph (1), except that the borrower may
repay a Federal ONE Parent Loan or an Excepted
Federal ONE Consolidation Loan (as defined in
subsection (d)(5)) separately from other loans
made under this part to the borrower.
(4) Repayment after default.--The Secretary may
require any borrower who has defaulted on a loan made
under this part to--
(A) pay all reasonable collection costs
associated with such loan; and
(B) repay the loan pursuant to the income-
based repayment plan under subsection (d).
(5) Repayment period.--For purposes of calculating
the repayment period under this subsection, such period
shall commence at the time the first payment of
principal is due from the borrower.
(6) Installments.-- Repayment of loans under this
part shall be in installments in accordance with the
repayment plan selected under paragraph (1) and
commencing at the beginning of the repayment period
determined under paragraph (5).
(d) Income-Based Repayment Program.--
(1) In general.--Notwithstanding any other provision
of this Act, the Secretary shall carry out a program
under which--
(A) a borrower of any loan made under this
part (other than a Federal ONE Parent Loan or
an Excepted Federal ONE Consolidation Loan) may
elect to have the borrower's aggregate monthly
payment for all such loans--
(i) not to exceed the result obtained
by dividing by 12, 15 percent of the
result obtained by calculating, on at
least an annual basis, the amount by
which--
(I) the adjusted gross income
of the borrower or, if the
borrower is married and files a
Federal income tax return
jointly with or separately from
the borrower's spouse, the
adjusted gross income of the
borrower and the borrower's
spouse; 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));
and
(ii) not to be less than $25;
(B) the Secretary adjusts the calculated
monthly payment under subparagraph (A), if--
(i) in addition to the loans
described in subparagraph (A), the
borrower has an outstanding loan made
under part B or D (other than an
excepted parent loan or an excepted
consolidation loan, as such terms are
defined in section 493C(a)), by
determining the borrower's adjusted
monthly payment by multiplying--
(I) the calculated monthly
payment, by
(II) the percentage of the
total outstanding principal
amount of the borrower's loans
described in the matter
preceding subclause (I), which
are described in subparagraph
(A);
(ii) the borrower and borrower's
spouse have loans described in
subparagraph (A) and outstanding loans
under part B or D (other than an
excepted parent loan or an excepted
consolidation loan, as such terms are
defined in section 493C(a)) and have
filed a joint or separate Federal
income tax return, in which case the
Secretary determines--
(I) each borrower's
percentage of the couple's
total outstanding amount of
principal on such loans;
(II) the adjusted monthly
payment for each borrower by
multiplying the borrower's
calculated monthly payment by
the percentage determined under
subclause (I) applicable to the
borrower; and
(III) if the borrower's loans
are held by multiple holders,
the borrower's adjusted monthly
payment for loans described in
subparagraph (A) by multiplying
the adjusted monthly payment
determined under subclause (II)
by the percentage of the total
outstanding principal amount of
the borrower's loans described
in the matter preceding
subclause (I), which are
described in subparagraph (A);
(C) 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;
(D) any principal due and not paid under
subparagraph (C) shall be deferred;
(E) any interest due and not paid under
subparagraph (C) shall be capitalized, 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
subparagraph (G)(i);
(F) the amount of time the borrower makes
monthly payments under subparagraph (A) may
exceed 10 years;
(G) if the borrower no longer wishes to
continue the election under this subsection,
then--
(i) the maximum monthly payment
required to be paid for all loans made
to the borrower under this part (other
than a Federal ONE Parent Loan or an
Excepted Federal ONE Consolidation
Loan) shall not exceed the monthly
amount calculated under subsection
(c)(1)(A), based on a 10-year repayment
period, when the borrower first made
the election described in this
subsection; and
(ii) the amount of time the borrower
is permitted to repay such loans may
exceed 10 years;
(H) the Secretary shall cancel any
outstanding balance (other than an amount equal
to the interest accrued during any period of
in-school deferment under subparagraph (A),
(B), or (F) of section 469A(b)(1)) due on all
loans made under this part (other than a
Federal ONE Parent Loan or an Excepted Federal
ONE Consolidation Loan) to a borrower--
(i) who, at any time, elected to
participate in income-based repayment
under subparagraph (A);
(ii) whose final monthly payment for
such loans prior to the loan
cancellation under this subparagraph
was made under such income-based
repayment; and
(iii) who has repaid, pursuant to
income-based repayment under
subparagraph (A), a standard repayment
plan under subsection (c)(1)(A), or a
combination--
(I) an amount on such loans
that is equal to the total
amount of principal and
interest that the borrower
would have repaid under a
standard repayment plan under
subsection (c)(1)(A), based on
a 10-year repayment period,
when the borrower entered
repayment on such loans; and
(II) the amount of interest
that accrues during a period of
deferment described in section
469A prior to the completion of
the repayment period described
in subclause (I) on the portion
of such loans remaining to be
repaid in accordance with such
subclause; and
(I) a borrower who is repaying a loan made
under this part pursuant to income-based
repayment under subparagraph (A) may elect, at
any time during the 10-year period beginning on
the date the borrower entered repayment on the
loan, to terminate repayment pursuant to such
income-based repayment and repay such loan
under the standard repayment plan.
(2) Eligibility determinations.--
(A) In general.--The Secretary shall
establish procedures for annual verification of
a borrower's annual income and the annual
amount due on the total amount of loans made
under this part (other than a Federal ONE
Parent Loan or an Excepted Federal ONE
Consolidation Loan), and such other procedures
as are necessary to implement effectively
income-based repayment under this subsection,
including the procedures established with
respect to section 493C.
(B) Income information.--The Secretary may
obtain such information as is reasonably
necessary regarding the income of a borrower
(and the borrower's spouse, if applicable) of a
loan made under this part that is, or may be,
repaid pursuant to income-based repayment under
this subsection, for the purpose of determining
the annual repayment obligation of the
borrower. The Secretary shall establish
procedures for determining the borrower's
repayment obligation on that loan for such
year, and such other procedures as are
necessary to implement effectively the income-
based repayment under this subsection.
(C) Borrower requirements.--A borrower who
chooses to repay a loan made under this part
pursuant to income-based repayment under this
subsection, and--
(i) for whom adjusted gross income is
available and reasonably reflects the
borrower's current income, shall, to
the maximum extent practicable, provide
to the Secretary the Federal tax
information of the borrower; and
(ii) for whom adjusted gross income
is unavailable or does not reasonably
reflect the borrower's current income,
shall provide to the Secretary other
documentation of income satisfactory to
the Secretary, which documentation the
Secretary may use to determine an
appropriate repayment schedule.
(3) Notification to borrowers.--The Secretary shall
establish procedures under which a borrower of a loan
made under this part who chooses to repay such loan
pursuant to income-based repayment under this
subsection is notified of the terms and conditions of
such plan, including notification that if a borrower
considers that special circumstances, such as a loss of
employment by the borrower or the borrower's spouse,
warrant an adjustment in the borrower's loan repayment
as determined using the borrower's Federal tax return
information, or the alternative documentation described
in paragraph (2)(C), the borrower may contact the
Secretary, who shall determine whether such adjustment
is appropriate, in accordance with criteria established
by the Secretary.
(4) Reduced payment periods.--
(A) In general.--The Secretary shall
authorize borrowers meeting the criteria under
subparagraph (B) to make monthly payments of $5
for a period not in excess of 3 years, except
that--
(i) for purposes of subparagraph
(B)(i), the Secretary may authorize
reduced payments in 6-month increments,
beginning on the date the borrower
provides to the Secretary the evidence
described in subclause (I) or (II) of
subparagraph (B)(i); and
(ii) for purposes of subparagraph
(B)(ii), the Secretary may authorize
reduced payments in 3-month increments,
beginning on the date the borrower
provides to the Secretary the evidence
described in subparagraph (B)(ii)(I).
(B) Eligibility determinations.--The
Secretary shall authorize borrowers to make
reduced payments under this paragraph in the
following circumstances:
(i) In a case of borrower who is
seeking and unable to find full-time
employment, as demonstrated by
providing to the Secretary--
(I) evidence of the
borrower's eligibility for
unemployment benefits to the
Secretary; or
(II) a written certification
or an equivalent that--
(aa) the borrower has
registered with a
public or private
employment agency that
is available to the
borrower within a 50-
mile radius of the
borrower's home
address; and
(bb) in the case of a
borrower that has been
granted a request under
this subparagraph, the
borrower has made at
least six diligent
attempts during the
preceding six-month
period to secure full-
time employment.
(ii) The Secretary determines that,
due to high medical expenses, the $25
monthly payment the borrower would
otherwise make would be an extreme
economic hardship to the borrower, if--
(I) the borrower documents
the reason why the $25 minimum
payment is an extreme economic
hardship; and
(II) the borrower recertifies
the reason for the $5 minimum
payment on a three-month basis.
(C) Definition.--For purpose of this section,
the term ``full-time employment'' means
employment that will provide not less than 30
hours of work a week and is expected to
continue for a period of not less than 3
months.
(5) Definitions.--In this subsection:
(A) Adjusted gross income.--The term
``adjusted gross income'' has the meaning given
the term in section 62 of the Internal Revenue
Code of 1986.
(B) Excepted Federal ONE Consolidation
Loan.--The term ``Excepted Federal ONE
Consolidation Loan'' means a Federal ONE
Consolidation Loan if the proceeds of such loan
were used to discharge the liability on--
(i) a Federal ONE Parent Loan;
(ii) a Federal Direct PLUS Loan, or a
loan under section 428B, that is made,
insured, or guaranteed on behalf of a
dependent student;
(iii) an excepted consolidation loan
(defined in section 493C); or
(iv) a Federal ONE Consolidation loan
that was used to discharge the
liability on a loan described in clause
(i), (ii), or (iii).
(e) Rules of Construction.--Nothing in this section shall be
construed to authorize, with respect to loans made under this
part--
(1) eligibility for a repayment plan that is not
described in subsection (c)(1) or section 468(c); or
(2) the Secretary to--
(A) carry out a repayment plan, which is not
described in subsection (c)(1) or section
468(c); or
(B) modify a repayment plan that is described
in subsection (c)(1) or section 468(c).
SEC. 467. FEDERAL ONE PARENT LOANS.
(a) Authority To Borrow.--
(1) Authority and eligibility.--The parent of a
dependent student shall be eligible to borrow funds
under this section in amounts specified in subsection
(b), if--
(A) the parent is borrowing to pay for the
educational costs of a dependent student who
meets the requirements for an eligible student
under section 484(a);
(B) the parent meets the applicable
requirements concerning defaults and
overpayments that apply to a student borrower;
(C) the parent complies with the requirements
for submission of a statement of educational
purpose that apply to a student borrower under
section 484(a)(4)(A) (other than the completion
of a statement of selective service
registration status);
(D) the parent meets the requirements that
apply to a student under section 437(a);
(E) the parent--
(i) does not have an adverse credit
history; or
(ii) has an adverse credit history,
but has--
(I) obtained an endorser who
does not have an adverse credit
history or documented to the
satisfaction of the Secretary
that extenuating circumstances
exist in accordance with
paragraph (4)(D); and
(II) completed Federal ONE
Parent Loan counseling offered
by the Secretary; and
(F) in the case of a parent who has been
convicted of, or has pled nolo contendere or
guilty to, a crime involving fraud in obtaining
funds under this title, such parent has
completed the repayment of such funds to the
Secretary, or to the holder in the case of a
loan under this title obtained by fraud.
(2) Terms, conditions, and benefits.--Except as
provided in subsections (c), (d), and (e), loans made
under this section shall have the same terms,
conditions, and benefits as all other loans made under
this part.
(3) Parent borrowers.--
(A) Definition.--For purposes of this
section, the term ``parent'' includes a
student's biological or adoptive mother or
father or the student's stepparent, if the
biological parent or adoptive mother or father
has remarried at the time of filing the common
financial reporting form under section 483(a),
and that spouse's income and assets would have
been taken into account when calculating the
student's expected family contribution.
(B) Clarification.--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.
(4) Adverse credit history definitions and
adjustments.--
(A) Definitions.--For purposes of this
section:
(i) In general.--The term ``adverse
credit history'', when used with
respect to a borrower, means that the
borrower--
(I) has one or more debts
with a total combined
outstanding balance equal to or
greater than $2,085, as may be
adjusted by the Secretary in
accordance with subparagraph
(B), that--
(aa) are 90 or more
days delinquent as of
the date of the credit
report; or
(bb) have been placed
in collection or
charged off during the
two years preceding the
date of the credit
report; or
(II) has been the subject of
a default determination,
bankruptcy discharge,
foreclosure, repossession, tax
lien, wage garnishment, or
write-off of a debt under this
title during the 5 years
preceding the date of the
credit report.
(ii) Charged off.--The term ``charged
off'' means a debt that a creditor has
written off as a loss, but that is
still subject to collection action.
(iii) In collection.-- The term ``in
collection'' means a debt that has been
placed with a collection agency by a
creditor or that is subject to more
intensive efforts by a creditor to
recover amounts owed from a borrower
who has not responded satisfactorily to
the demands routinely made as part of
the creditor's billing procedures.
(B) Adjustments.--
(i) In general.--In a case of a
borrower with a debt amount described
in subparagraph (A)(i), the Secretary
shall increase such debt amount, or its
inflation-adjusted equivalent, if the
Secretary determines that an inflation
adjustment to such debt amount would
result in an increase of $100 or more
to such debt amount.
(ii) Inflation adjustment.--In making
the inflation adjustment under clause
(i), the Secretary shall--
(I) use the annual average
percent change of the All Items
Consumer Price Index for All
Urban Consumers, before
seasonal adjustment, as the
measurement of inflation; and
(II) if the adjustment
calculated under subclause (I)
is equal to or greater than
$100--
(aa) add the
adjustment to the debt
amount, or its
inflation-adjusted
equivalent; and
(bb) round up to the
nearest $5.
(iii) Publication.--The Secretary
shall publish a notice in the Federal
Register announcing any increase to the
threshold amount specified in
subparagraph (A)(i)(I).
(C) Treatment of absence of credit history.--
For purposes of this section, the Secretary
shall not consider the absence of a credit
history as an adverse credit history and shall
not deny a Federal ONE Parent loan on that
basis.
(D) Extenuating circumstances.--For purposes
of this section, the Secretary may determine
that extenuating circumstances exist based on
documentation that may include--
(i) an updated credit report for the
parent; or
(ii) a statement from the creditor
that the parent has repaid or made
satisfactory arrangements to repay a
debt that was considered in determining
that the parent has an adverse credit
history
(b) Limitation Based on Need.--Any loan under this section
may be counted as part of the expected family contribution in
the determination of need under this title, but no loan may be
made to any parent under this section for any academic year in
excess of the lesser of--
(1) the student's estimated cost of attendance minus
the student's estimated financial assistance (as
calculated under section 465(b)(1)(A)); or
(2) the established annual loan limits for such loan
under section 465(b).
(c) Parent Loan Disbursement.--All loans made under this
section shall be disbursed in accordance with the requirements
of section 465(a) and shall be disbursed by--
(1) an electronic transfer of funds from the lender
to the eligible institution; or
(2) a check copayable to the eligible institution and
the parent borrower.
(d) Payment of Principal and Interest.--
(1) Commencement of repayment.--Repayment of
principal on loans made under this section shall
commence not later than 60 days after the date such
loan is disbursed by the Secretary, subject to
deferral--
(A) during any period during which the parent
borrower meets the conditions required for a
deferral under section 469A; and
(B) upon the request of the parent borrower,
during the 6-month period beginning, if the
parent borrower is also a student, the day
after the date such parent borrower ceases to
carry at least one-half such a workload.
(2) Maximum repayment period.--The maximum repayment
period for a loan made under this section shall be a
10-year period beginning on the commencement of such
period described in paragraph (1).
(3) Capitalization of interest.--Interest on loans
made under this section for which payments of principal
are deferred pursuant to paragraph (1) shall, if agreed
upon by the borrower and the Secretary--
(A) be paid monthly or quarterly; or
(B) be added to the principal amount of the
loan not more frequently than quarterly by the
Secretary.
(4) Applicable rates of interest.--Interest on loans
made pursuant to this section shall be at the
applicable rate of interest provided in section
465(c)(3) for loans made under this section.
(5) Amortization.--Section 466(b)(2) shall apply to
each loan made under this section.
(e) Verification of Immigration Status and Social Security
Number.--A parent who wishes to borrow funds under this section
shall be subject to verification of the parent's--
(1) immigration status in the same manner as
immigration status is verified for students under
section 484(g); and
(2) social security number in the same manner as
social security numbers are verified for students under
section 484(p).
(f) Designation.--For purposes of this Act, the Federal ONE
Loans described in this section shall be known as ``Federal ONE
Parent Loans''.
SEC. 468. FEDERAL ONE CONSOLIDATION LOANS.
(a) Terms and Conditions.--In making consolidation loans
under this section, the Secretary shall--
(1) not make such a loan to an eligible borrower,
unless the Secretary has determined, in accordance with
reasonable and prudent business practices, for each
loan being consolidated, that the loan--
(A) is a legal, valid, and binding obligation
of the borrower; and
(B) was made and serviced in compliance with
applicable laws and regulations;
(2) ensure that each consolidation loan made under
this section will bear interest, and be subject to
repayment, in accordance with subsection (c), except as
otherwise provided under subsections (f) and (g) of
section 465;
(3) ensure that each consolidation loan will be made,
notwithstanding any other provision of this part
limiting the annual or aggregate principal amount for
all loans made to a borrower, in an amount which is
equal to the sum of the unpaid principal and accrued
unpaid interest and late charges of all eligible
student loans received by the eligible borrower which
are selected by the borrower for consolidation;
(4) ensure that the proceeds of each consolidation
loan will be paid by the Secretary to the holder or
holders of the loans so selected to discharge the
liability on such loans;
(5) disclose to a prospective borrower, in simple and
understandable terms, at the time the Secretary
provides an application for a consolidation loan--
(A) with respect to a loan made, insured, or
guaranteed under this part, part B, or part D,
that if a borrower includes such a loan in the
consolidation loan--
(i) that the consolidation would
result in a loss of loan benefits; and
(ii) which specific loan benefits the
borrower would lose, including the loss
of eligibility for loan forgiveness
(including loss of eligibility for
interest rate forgiveness),
cancellation, deferment, forbearance,
interest-free periods, or loan
repayment programs that would have been
available for such a loan; and
(B) with respect to Federal Perkins Loans
under this part (as this part was in effect on
the day before the date of enactment of the
PROSPER Act)--
(i) that if a borrower includes such
a Federal Perkins Loan in the
consolidation loan, the borrower will
lose all interest-free periods that
would have been available for the
Federal Perkins Loan, such as--
(I) the periods during which
no interest accrues on such
loan while the borrower is
enrolled in an institution of
higher education at least half-
time;
(II) the grace period under
section 464(c)(1)(A) (as such
section was in effect on the
day before the date of
enactment of the PROSPER Act);
and
(III) the periods during
which the borrower's student
loan repayments are deferred
under section 464(c)(2) (as
such section was in effect on
the day before the date of
enactment of the PROSPER Act);
and
(ii) that if a borrower includes such
a Federal Perkins Loan in the
consolidation loan, the borrower will
no longer be eligible for cancellation
of part or all of the Federal Perkins
Loan under section 465(a) (as such
section was in effect on the day before
the date of enactment of the PROSPER
Act); and
(iii) the occupations listed in
section 465 that qualify for Federal
Perkins Loan cancellation under section
465(a) (as such section was in effect
on the day before the date of enactment
of the PROSPER Act);
(C) the repayment plans that are available to
the borrower under section (c);
(D) the options of the borrower to prepay the
consolidation loan, to pay such loan on a
shorter schedule, and to change repayment
plans;
(E) the consequences of default on the
consolidation loan; and
(F) that by applying for a consolidation
loan, the borrower is not obligated to agree to
take the consolidation loan; and
(6) not make such a loan to an eligible borrower,
unless--
(A) the borrower has agreed to notify the
Secretary promptly concerning any change of
address; and
(B) the loan is evidenced by a note or other
written agreement which--
(i) is made without security and
without endorsement, except that if--
(I) the borrower is a minor
and such note or other written
agreement executed by him or
her would not, under applicable
law, create a binding
obligation, endorsement may be
required; or
(II) the borrower desires to
include in the consolidation
loan, a Federal ONE Parent
Loan, or a loan under section
428B, or a Federal Direct PLUS
loan, made on behalf of a
dependent student, endorsement
shall be required;
(ii) provides for the payment of
interest and the repayment of principal
as described in paragraph (2);
(iii) provides that during any period
for which the borrower would be
eligible for a deferral under section
469A, which period shall not be
included in determining the repayment
schedule pursuant to subsection (c)--
(I) periodic installments of
principal need not be paid, but
interest shall accrue and be
paid by the borrower or be
capitalized; and
(II) except as otherwise
provided under subsections (f)
and (g) of section 465, the
Secretary shall not pay
interest on any portion of the
consolidation loan, without
regard to whether the portion
repays Federal Stafford Loans
for which the student borrower
received an interest subsidy
under section 428 or Federal
Direct Stafford Loans for which
the borrower received an
interest subsidy under section
455;
(iv) entitles the borrower to
accelerate without penalty repayment of
the whole or any part of the loan; and
(v) contains a notice of the system
of disclosure concerning such loan to
consumer reporting agencies under
section 430A, and provides that the
Secretary on request of the borrower
will provide information on the
repayment status of the note to such
consumer reporting agencies.
(b) Nondiscrimination in Loan Consolidation.--The Secretary
shall not discriminate against any borrower seeking a loan
under this section--
(1) based on the number or type of eligible student
loans the borrower seeks to consolidate;
(2) based on the type or category of institution of
higher education that the borrower attended;
(3) based on the interest rate to be charged to the
borrower with respect to the consolidation loan; or
(4) with respect to the types of repayment schedules
offered to such borrower.
(c) Payment of Principal and Interest.--
(1) Repayment schedules.--
(A) Establishment.--
(i) In general.--Notwithstanding any
other provision of this part, the
Secretary shall--
(I) establish repayment terms
as will promote the objectives
of this section; and
(II) provide a borrower with
the option of the standard-
repayment plan or income-based
repayment plan under section
466(d) in lieu of such
repayment terms.
(ii) Schedule terms.--The repayment
terms established under clause (i)(I)
shall require that if the sum of the
consolidation loan and the amount
outstanding on other eligible student
loans to the individual--
(I) is less than $7,500, then
such consolidation loan shall
be repaid in not more than 10
years;
(II) is equal to or greater
than $7,500 but less than
$10,000, then such
consolidation loan shall be
repaid in not more than 12
years;
(III) is equal to or greater
than $10,000 but less than
$20,000, then such
consolidation loan shall be
repaid in not more than 15
years;
(IV) is equal to or greater
than $20,000 but less than
$40,000, then such
consolidation loan shall be
repaid in not more than 20
years;
(V) is equal to or greater
than $40,000 but less than
$60,000, then such
consolidation loan shall be
repaid in not more than 25
years; or
(VI) is equal to or greater
than $60,000, then such
consolidation loan shall be
repaid in not more than 30
years.
(B) Limitation.--The amount outstanding on
other eligible student loans which may be
counted for the purpose of subparagraph (A) may
not exceed the amount of the consolidation
loan.
(2) Additional repayment requirements.--
Notwithstanding paragraph (1)--
(A) except in the case of an income-based
repayment schedule under section 466(d), a
repayment schedule established with respect to
a consolidation loan shall require that the
minimum installment payment be an amount equal
to not less than the accrued unpaid interest;
and
(B) an income-based repayment schedule under
section 466(d) shall not be available to a
consolidation loan borrower who--
(i) used the proceeds of a Federal
ONE Consolidation loan to discharge the
liability--
(I) on a loan under section
428B made on behalf of a
dependent student;
(II) a Federal Direct PLUS
loan made on behalf of a
dependent student;
(III) a Federal ONE Parent
loan; or
(IV) an excepted
consolidation loan (defined in
section 493C); or
(ii) used the proceeds of a
subsequent Federal ONE Consolidation
loan to discharge the liability on a
Federal ONE Consolidation loan
described in clause (i).
(3) Commencement of repayment.--Repayment of a
consolidation loan shall commence within 60 days after
all holders have, pursuant to subsection (a)(4),
discharged the liability of the borrower on the loans
selected for consolidation.
(4) Interest rate.--A consolidation loan made under
this section shall bear interest at an annual rate
described in section 465(c)(4).
(d) Insurance Rule.--Any insurance premium paid by the
borrower under subpart I of part A of title VII of the Public
Health Service Act with respect to a loan made under that
subpart and consolidated under this section shall be retained
by the student loan insurance account established under section
710 of the Public Health Service Act.
(e) Definitions.--For the purpose of this section:
(1) Eligible borrower.--
(A) In general.--The term ``eligible
borrower'' means a borrower who--
(i) is not subject to a judgment
secured through litigation with respect
to a loan under this title or to an
order for wage garnishment under
section 488A; and
(ii) at the time of application for a
consolidation loan--
(I) is in repayment status as
determined under section
466(a)(1);
(II) is in a grace period
preceding repayment; or
(III) is a defaulted borrower
who has made arrangements to
repay the obligation on the
defaulted loans satisfactory to
the holders of the defaulted
loans.
(B) Termination of status as an eligible
borrower.--An individual's status as an
eligible borrower under this section terminates
upon receipt of a consolidation loan under this
section, except that--
(i) an individual who receives
eligible student loans after the date
of receipt of the consolidation loan
may receive a subsequent consolidation
loan;
(ii) loans received prior to the date
of the consolidation loan may be added
during the 180-day period following the
making of the consolidation loan;
(iii) loans received following the
making of the consolidation loan may be
added during the 180-day period
following the making of the
consolidation loan;
(iv) loans received prior to the date
of the first consolidation loan may be
added to a subsequent consolidation
loan; and
(v) an individual may obtain a
subsequent consolidation loan for the
purpose--
(I) of income-based repayment
under section 466(d) only if
the loan has been submitted for
default aversion or if the loan
is already in default;
(II) of using the no accrual
of interest for active duty
service members benefit offered
under section 465(g); of
(III) of submitting an
application under section
469B(d) for a borrower defense
to repayment of a loan made,
insured, or guaranteed under
this title.
(2) Eligible student loans.--For the purpose of
paragraph (1), the term ``eligible student loans''
means loans--
(A) made, insured, or guaranteed under part
B, and first disbursed before July 1, 2010,
including loans on which the borrower has
defaulted (but has made arrangements to repay
the obligation on the defaulted loans
satisfactory to the Secretary or guaranty
agency, whichever insured the loans);
(B) made under part D of this title, and
first disbursed before July 1, 2019;
(C) made under this part before September 30,
2017;
(D) made under this part on or after the date
of enactment of the PROSPER Act;
(E) made under subpart II of part A of title
VII of the Public Health Service Act; or
(F) made under part E of title VIII of the
Public Health Service Act.
(f) Designation.--For purposes of this Act, the Federal ONE
Loans described in this section shall be known as ``Federal ONE
Consolidation Loans''.
SEC. 469. TEMPORARY LOAN CONSOLIDATION AUTHORITY.
(a) In General.--A borrower who has 1 or more loans in 2 or
more of the categories described in subsection (b), and who has
not yet entered repayment on 1 or more of those loans in any of
the categories, may consolidate all of the loans of the
borrower that are described in subsection (b) into a Federal
ONE Consolidation Loan during the period described in
subsection (c).
(b) Categories of Loans that May be Consolidated.--The
categories of loans that may be consolidated under this section
are--
(1) loans made under this part before October 1, 2017
and on or after July 1, 2019;
(2) loans purchased by the Secretary pursuant to
section 459A;
(3) loans made under part B that are held by an
eligible lender, as such term is defined in section
435(d); and
(4) loans made under part D.
(c) Time period in Which Loans May be Consolidated.--The
Secretary may make a Federal ONE Consolidation Loan under this
section to a borrower whose application for such Federal ONE
Consolidation Loan is received on or after July 1, 2019, and
before July 1, 2024.
(d) Terms of Loans.--A Federal ONE Consolidation Loan made
under this subsection shall have the same terms and conditions
as a Federal ONE Consolidation Loan made under section 468,
except that in determining the applicable rate of interest on
the Federal ONE Consolidation Loan made under this section,
section 465(c)(4) shall be applied without rounding the
weighted average of the interest rate on the loans consolidated
to the nearest higher one-eighth of one percent as in such
section.
SEC. 469A. DEFERMENT.
(a) Effect on Principal and Interest.--A borrower of a loan
made under this part who meets the requirements described in
subsection (b) shall be eligible for a deferment during which
installments of principal need not be paid and, unless
otherwise provided in this subsection, interest shall accrue
and be capitalized or paid by the borrower.
(b) Eligibility.--A borrower of a loan made under this part
shall be eligible for a deferment--
(1) during any period during which the borrower--
(A) is carrying at least one-half the normal
full-time work load for the course of study
that the borrower is pursuing, as determined by
the eligible institution the borrower is
attending;
(B) is pursuing a course of study pursuant
to--
(i) an eligible graduate fellowship
program in accordance with subsection
(g); or
(ii) an eligible rehabilitation
training program for individuals with
disabilities in accordance with
subsection (i);
(C) is serving on active duty during a war or
other military operation or national emergency,
and for the 180-day period following the
demobilization date for such service;
(D) is performing qualifying National Guard
duty during a war or other military operation
or national emergency, and for the 180-day
period following the demobilization date for
such service;
(E) is a member of the National Guard who is
not eligible for a post-active duty deferment
under section 493D and is engaged in active
State duty for a period of more than 30
consecutive days beginning--
(i) the day after 6 months after the
date the student ceases to carry at
least one-half the normal full-time
academic workload (as determined by the
institution); or
(ii) the day after the borrower
ceases enrollment on at least a half-
time basis, for a loan in repayment;
(F) is serving in a medical or dental
internship or residency program, the successful
completion of which is required to begin
professional practice or service, or is serving
in a medical or dental internship or residency
program leading to a degree or certificate
awarded by an institution of higher education,
a hospital, or a health care facility that
offers postgraduate training; or
(G) is eligible for interest payments to be
made on a loan made under this part for service
in the Armed Forces under section 2174 of title
10, United States Code, and pursuant to that
eligibility, the interest is being paid on such
loan under section 465(f);
(2) during a period sufficient to enable the borrower
to resume honoring the agreement to repay the
outstanding balance of principal and interest on the
loan after default, if--
(A) the borrower signs a new agreement to
repay such outstanding balance;
(B) the deferment period is limited to 120
days; and
(C) such deferment is not granted for
consecutive periods;
(3) during a period of administrative deferment
described in subsection (j); or
(4) in the case of a borrower of a Federal ONE Parent
Loan or an Excepted Federal ONE Consolidation Loan,
during a period described in subsection (k).
(c) Length of Deferment.--A deferment granted by the
Secretary--
(1) under subparagraph (F) or (G) of subsection
(b)(1) shall be renewable at 12 month intervals;
(2) under subparagraph (F) of subsection (b)(1) shall
equal the length of time remaining in the borrower's
medical or dental internship or residency program; and
(3) under subparagraph (G) of subsection (b)(1) shall
not exceed 3 years.
(d) Request and Documentation.--The Secretary shall determine
the eligibility of a borrower for a deferment under paragraphs
(1), (2), or (4) of subsection (b), or in the case of a loan
for which an endorser is required, an endorser's eligibility
for a deferment under paragraph (2) or (4) or eligibility to
request a deferment under paragraph (1), based on--
(1) the receipt of a request for a deferment from the
borrower or the endorser, and documentation of the
borrower's or endorser's eligibility for the deferment
or eligibility to request the deferment;
(2) receipt of a completed loan application that
documents the borrower's eligibility for a deferment;
(3) receipt of a student status information
documenting that the borrower is enrolled on at least a
half-time basis; or
(4) the Secretary's confirmation of the borrower's
half-time enrollment status, if the confirmation is
requested by the institution of higher education.
(e) Notification.--The Secretary shall--
(1) notify a borrower of a loan made under this
part--
(A) the granting of a deferment under this
subsection on such loan; and
(B) the option of the borrower to continue
making payments on the outstanding balance of
principal and interest on such loan in
accordance with subsection (f);
(2) at the time the Secretary grants a deferment to a
borrower of a loan made under this part, and not less
frequently than once every 180 days during the period
of such deferment, provide information to the borrower
to assist the borrower in understanding--
(A) the effect of granting a deferment on the
total amount to be paid under the income-based
repayment plan under 466(d);
(B) the fact that interest will accrue on the
loan for the period of deferment, other than
for a deferment granted under subsection
(b)(1)(G);
(C) the amount of unpaid principal and the
amount of interest that has accrued since the
last statement of such amounts provided to the
borrower;
(D) the amount of interest that will be
capitalized, and the date on which
capitalization will occur;
(E) the effect of the capitalization of
interest on the borrower's loan principal and
on the total amount of interest to be paid on
the loan;
(F) the option of the borrower to pay the
interest that has accrued before the interest
is capitalized; and
(G) the borrower's option to discontinue the
deferment at any time.
(f) Form of Deferment.--The form of a deferment granted under
this subsection on a loan made under this part shall be
temporary cessation of all payments on such loan, except that--
(1) in the case of a deferment granted under
subsection (b)(1)(G), payments of interest on the loan
will be made by the Secretary under section 465(f)
during such period of deferment; and
(2) a borrower may make payments on the outstanding
balance of principal and interest on such loan during
any period of deferment granted under this subsection.
(g) Graduate Fellowship Deferment.--
(1) In general.--A borrower of a loan under this part
is eligible for a deferment under subsection
(b)(1)(B)(i) during any period for which an authorized
official of the borrower's graduate fellowship program
certifies that the borrower meets the requirements of
paragraph (2) and is pursuing a course of study
pursuant to an eligible graduate fellowship program.
(2) Borrower requirements.--A borrower meets the
requirements of this subparagraph if the borrower--
(A) holds at least a baccalaureate degree
conferred by an institution of higher
education;
(B) has been accepted or recommended by an
institution of higher education for acceptance
on a full-time basis into an eligible graduate
fellowship program; and
(C) is not serving in a medical internship or
residency program, except for a residency
program in dentistry.
(h) Treatment of Study Outside the United States.--
(1) In general.--The Secretary shall treat, in the
same manner as required under section 428(b)(4), any
course of study at a foreign university that is
accepted for the completion of a recognized
international fellowship program by the administrator
of such a program as an eligible graduate fellowship
program.
(2) Requests for deferment.--Requests for deferment
of repayment of loans under this subsection by students
engaged in graduate or postgraduate fellowship-
supported study (such as pursuant to a Fulbright grant)
outside the United States shall be approved until
completion of the period of the fellowship, in the same
manner as required under section 428(b)(4).
(i) Rehabilitation Training Program Deferment.--A borrower of
a loan under this part is eligible for a deferment under
subsection (b)(1)(B)(ii) during any period for which an
authorized official of the borrower's rehabilitation training
program certifies that the borrower is pursuing an eligible
rehabilitation training program for individuals with
disabilities.
(j) Administrative Deferments.--The Secretary may grant a
deferment to a borrower or, in the case of a loan for which an
endorser is required, an endorser, without requiring a request
and documentation from the borrower or the endorser under
subsection (d) for--
(1) a period during which the borrower was delinquent
at the time a deferment is granted, including a period
for which scheduled payments of principal and interest
were overdue at the time such deferment is granted;
(2) a period during which the borrower or the
endorser was granted a deferment under this subsection
but for which the Secretary determines the borrower or
the endorser should not have qualified;
(3) a period necessary for the Secretary to determine
the borrower's eligibility for the cancellation of the
obligation of the borrower to repay the loan under
section 437;
(4) a period during which the Secretary has
authorized deferment due to a national military
mobilization or other local or national emergency; or
(5) a period not to exceed 60 days, during which
interest shall accrue but not be capitalized, if the
Secretary reasonably determines that a suspension of
collection activity is warranted to enable the
Secretary to process supporting documentation relating
to a borrower's request--
(A) for a deferment under this subsection;
(B) for a change in repayment plan under
section 466(c); or
(C) to consolidate loans under section 468.
(k) Deferments for Parent or Excepted Consolidation Loans.--
(1) In general.--A qualified borrower shall be
eligible for deferments under paragraphs (3) through
(5).
(2) Qualified borrower defined.--In this subsection,
the term ``qualified borrower'' means--
(A) a borrower of a Federal ONE Parent Loan
or an Excepted Federal ONE Consolidation Loan;
or
(B) in the case of such a loan for which an
endorser is required, the endorser of such
loan.
(3) Economic hardship deferment.--
(A) In general.--A qualified borrower shall
be eligible for a deferment during periods, not
to exceed 3 years in total, during which the
qualified borrower experiences an economic
hardship described in subparagraph (B).
(B) Economic hardship.--An economic hardship
described in this clause is a period during
which the qualified borrower--
(i) is receiving payment under a
means-tested benefit program;
(ii) is employed full-time and the
monthly gross income of the qualified
borrower does not exceed the greater
of--
(I) the minimum wage rate
described in section 6 of the
Fair Labor Standards Act of
1938 (29 U.S.C. 206); or
(II) an amount equal to 150
percent of the poverty line; or
(iii) demonstrates that the sum of
the qualified borrower's monthly
payments on the qualified borrower's
Federal ONE Parent Loan or Excepted
Federal ONE Consolidation Loan is not
less than 20 percent of the qualified
borrower's monthly gross income.
(C) Eligibility.--To be eligible to receive a
deferment under this subparagraph, a qualified
borrower shall submit to the Secretary--
(i) for the first period of deferment
under this subparagraph, evidence
showing the monthly gross income of the
qualified borrower; and
(ii) for a subsequent period of
deferment that begins less than one
year after the end of a period of
deferment granted under this
subparagraph--
(I) evidence showing the
monthly gross income of the
qualified borrower; or
(II) the qualified borrower's
most recently filed Federal
income tax return, if such a
return was filed in either of
the two tax years preceding the
year in which the qualified
borrower requests the
subsequent period of deferment.
(4) Unemployment deferment.--
(A) In general.--A qualified borrower shall
be eligible for a deferment for periods during
which the qualified borrower is seeking, and is
unable to find, full-time employment.
(B) Eligibility.--
(i) In general.--To be eligible to
receive an deferment under this
subparagraph, a qualified borrower
shall submit to the Secretary--
(I) evidence of the qualified
borrower's eligibility for
unemployment benefits; or
(II) written confirmation, or
an equivalent as approved by
the Secretary, that--
(aa) the qualified
borrower has registered
with a public or
private employment
agency, if one is
available to the
borrower within 50
miles of the qualified
borrower's address; and
(bb) for requests
submitted after the
initial request, the
qualified borrower has
made at least six
diligent attempts
during the preceding
six-month period to
secure full-time
employment.
(ii) Acceptance of employment.--A
qualified borrower shall not be
eligible for a deferment under this
subparagraph if the qualified borrower
refuses to seek or accept employment in
types of positions or at salary levels
or responsibility levels for which the
qualified borrower feels overqualified
based on the qualified borrower's
education or previous experience.
(C) Terms of deferment.--The following terms
shall apply to a deferment under this
subparagraph:
(i) Initial period.--The first
deferment granted to a qualified
borrower under this subparagraph may be
for a period of unemployment beginning
not more than 6 months before the date
on which the Secretary receives the
qualified borrower's request for
deferment and may be granted for a
period of up to 6 months after that
date.
(ii) Renewals.--Deferments under this
subparagraph shall be renewable at 6-
month intervals beginning after the
expiration of the first period of
deferment under clause (i). To be
eligible to renew a deferment under
this subparagraph, a qualified borrower
shall submit to the Secretary the
information described in subparagraph
(B)(i).
(iii) Aggregate limit.--The period of
all deferments granted to a borrower
under this subparagraph may not exceed
3 years in aggregate.
(5) Health deferment.--
(A) In general.--A qualified borrower shall
be eligible for a deferment during periods in
which the qualified borrower is unable to make
scheduled loan payments due to high medical
expenses, as determined by the Secretary.
(B) Eligibility.--To be eligible to receive a
deferment under this subparagraph, a qualified
borrower shall--
(i) submit to the Secretary
documentation demonstrating that making
scheduled loan payments would be an
extreme economic hardship to the
borrower due to high medical expenses,
as determined by the Secretary; and
(ii) resubmit such documentation to
the Secretary not less frequently than
once every 3 months.
(l) Prohibitions.--
(1) Prohibition on fees.--No administrative fee or
other fee may be charged to the borrower in connection
with the granting of a deferment under this subsection.
(2) Prohibition on adverse credit reporting.--No
adverse information relating to a borrower may be
reported to a consumer reporting agency solely because
of the granting of a deferment under this subsection.
(3) Limitation on authority.--The Secretary shall
not, through regulation or otherwise, authorize
additional deferment options or periods of deferment
other than the deferment options and periods of
deferment authorized under this subsection.
(m) Treatment of endorsers.--With respect to any Federal ONE
Parent Loan or Federal ONE Consolidation Loan for which an
endorser is required--
(1) paragraphs (2) through (4) of subsection (b)
shall be applied--
(A) by substituting ``An endorser'' for ``A
borrower'';
(B) by substituting ``the endorser'' for
``the borrower''; and
(C) by substituting ``an endorser'' for ``a
borrower''; and
(2) in the case in which the borrower of such a loan
is eligible for a deferment described in subparagraph
(C), (D), (E), (F), or (G) of subsection (b)(1), but is
not making payments on the loan, the endorser of the
loan may request a deferment under such subparagraph
for the loan.
(n) Definitions.--In this section:
(1) Eligible graduate fellowship program.--The term
``eligible graduate fellowship program'', when used
with respect to a course of study pursued by the
borrower of a loan under this part, means a fellowship
program that--
(A) provides sufficient financial support to
graduate fellows to allow for full-time study
for at least six months;
(B) requires a written statement from each
applicant explaining the applicant's objectives
before the award of that financial support;
(C) requires a graduate fellow to submit
periodic reports, projects, or evidence of the
fellow's progress; and
(D) in the case of a course of study at an
institution of higher education outside the
United States described in section 102, accepts
the course of study for completion of the
fellowship program.
(2) Eligible rehabilitation training program for
individuals with disabilities.--The term ``eligible
rehabilitation training program for individuals with
disabilities'', when used with respect a course of
study pursued by the borrower of a loan under this
part, means a program that--
(A) is necessary to assist an individual with
a disability in preparing for, securing,
retaining, or regaining employment;
(B) is licensed, approved, certified, or
otherwise recognized as providing
rehabilitation training to disabled individuals
by--
(i) a State agency with
responsibility for vocational
rehabilitation programs, drug abuse
treatment programs, mental health
services programs, or alcohol abuse
treatment programs; or
(ii) the Secretary of the Department
of Veterans Affairs; and
(C) provides or will provide the borrower
with rehabilitation services under a written
plan that--
(i) is individualized to meet the
borrower's needs;
(ii) specifies the date on which the
services to the borrower are expected
to end; and
(iii) requires a commitment of time
and effort from the borrower that
prevents the borrower from being
employed at least 30 hours per week,
either because of the number of hours
that must be devoted to rehabilitation
or because of the nature of the
rehabilitation.
(3) Excepted Federal one consolidation loan.--The
``Excepted Federal ONE Consolidation Loan'' have the
meaning given the term in section 466(d)(5).
(4) Family size.--The term ``family size'' means the
number that is determined by counting--
(A) the borrower;
(B) the borrower's spouse;
(C) the borrower's children, including unborn
children who are expected to be born during the
period covered by the deferment, if the
children receive more than half their support
from the borrower; and
(D) another individual if, at the time the
borrower requests a deferment under this
section, the individual--
(i) lives with the borrower;
(ii) receives more than half of the
individual's support (which may include
money, gifts, loans, housing, food,
clothes, car, medical and dental care,
and payment of college costs) from the
borrower; and
(iii) is expected to receive such
support from the borrower during the
relevant period of deferment.
(5) Full-time.--The term ``full-time'', when used
with respect to employment, means employment for not
less than 30 hours per week that is expected to
continue for not less than three months.
(6) Means-tested benefit program.--The term ``means-
tested benefit program'' means--
(A) a State public assistance program under
which eligibility for the program's benefits,
or the amount of such benefits, are determined
on the basis of income or resources of the
individual or family seeking the benefit; or
(B) a mandatory spending program of the
Federal Government, other than a program under
this title, under which eligibility for the
program's benefits, or the amount of such
benefits, are determined on the basis of income
or resources of the individual or family
seeking the benefit, and may include such
programs as
(i) the supplemental security income
program under title XVI of the Social
Security Act (42 U.S.C. 1381 et seq.);
(ii) the supplemental nutrition
assistance program under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et
seq.);
(iii) the free and reduced price
school lunch program established under
the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.);
(iv) the program of block grants for
States for temporary assistance for
needy families established under part A
of title IV of the Social Security Act
(42 U.S.C. 601 et seq.);
(v) the special supplemental
nutrition program for women, infants,
and children established by section 17
of the Child Nutrition Act of 1966 (42
U.S.C. 1786); and
(vi) other programs identified by the
Secretary.
(7) Monthly gross income.--The term ``monthly gross
income'', when used with respect to a borrower, means--
(A) the gross amount of income received by
the borrower from employment and other sources
for the most recent month; or
(B) one-twelfth of the borrower's adjusted
gross income, as recorded on the borrower's
most recently filed Federal income tax return.
SEC. 469B. ADDITIONAL TERMS.
(a) Applicable Part B Provisions.--
(1) Disclosures.--Except as otherwise provided in
this part, section 455(p) shall apply with respect to
loans under this part in the same manner that such
section applies with respect to loans under part D.
(2) Other provisions.--Except as otherwise provided
in this part, the following provisions shall apply with
respect to loans made under this part in the same
manner that such provisions apply with respect to loans
made under part D:
(A) Section 427(a)(2).
(B) Section 428(d).
(C) Section 428F
(D) Section 430A.
(E) Paragraphs (1), (2), (4), and (6) of
section 432(a).
(F) Section 432(i).
(G) Section 432(l).
(H) Section 432(m), except that an
institution of higher education shall have a
separate master promissory note under paragraph
(1)(D) of such section for loans made under
this part.
(I) Subsections (a), (c), and (d) of section
437.
(3) Application of provisions.--Any provision listed
under paragraph (1) or (2) that applies to--
(A) Federal Direct PLUS Loans made on behalf
of dependent students shall apply to Federal
ONE Parent Loans;
(B) Federal Direct PLUS Loans made to
students shall apply to Federal ONE Loans for
graduate or professional students;
(C) Federal Direct Unsubsidized Stafford
loans shall apply to Federal ONE Loans (other
than Federal ONE Consolidation Loans) for any
student borrower;
(D) Federal Direct Consolidation Loans shall
apply to Federal ONE Consolidation Loans; and
(E) forbearance shall apply to deferment
under section 469A.
(b) Eligible student.--A loan under this part may only be
made to a student who--
(1) is an eligible student under section 484;
(2) has agreed to notify promptly the Secretary and
the applicable contractors with which the Secretary has
a contract under section 493E concerning--
(A) any change of permanent address,
telephone number, or email address;
(B) when the student ceases to be enrolled on
at least a half-time basis; and
(C) any other change in status, when such
change in status affects the student's
eligibility for the loan; and
(3) is carrying at least one-half the normal full-
time academic workload for the course of study the
student is pursuing (as determined by the institution).
(c) Loan Application and Promissory Note.--The common
financial reporting form required in section 483(a)(1) shall
constitute the application for loans made under this part. The
Secretary shall develop, print, and distribute to participating
institutions a standard promissory note and loan disclosure
form.
(d) Borrower Defenses.--A borrower of a loan under this part
may assert a defense to repayment to such loan under the
provisions of section 455(h) that apply to a borrower of a loan
made under part D asserting, on or after the date of enactment
of the PROSPER Act, a defense to repayment to such loan made
under part D.
(e) Identity Fraud Protection.--The Secretary shall ensure
that monthly Federal ONE Loan statements and other publications
of the Department do not contain more than four digits of the
Social Security number of any individual.
(f) Authority to Sell loans.--The Secretary, in consultation
with the Secretary of the Treasury, is authorized to sell loans
made under this part on such terms determined to be in the best
interest of the United States, except that any such sale shall
not result in any cost to the Federal Government.
PART F--NEED ANALYSIS
* * * * * * *
SEC. 472. COST OF ATTENDANCE.
For the purpose of this title, the term ``cost of
attendance'' means--
(1) tuition and fees normally assessed a student
carrying the same academic workload as determined by
the institution, and including costs for rental or
purchase of any equipment, materials, or supplies
required of all students in the same course of study;
(2) an allowance for books, supplies, transportation,
and miscellaneous personal expenses, including a
reasonable allowance for the documented rental or
purchase of a personal computer, for a student
attending the institution on at least a half-time
basis, as determined by the institution;
(3) an allowance (as determined by the institution)
for room and board costs incurred by the student
which--
(A) shall be an allowance determined by the
institution for a student without dependents
residing at home with parents;
(B) for students without dependents residing
in institutionally owned or operated housing,
shall be a standard allowance determined by the
institution based on the amount normally
assessed most of its residents for room and
board;
(C) for students who live in housing located
on a military base or for which a basic
allowance is provided under section 403(b) of
title 37, United States Code, shall be an
allowance based on the expenses reasonably
incurred by such students for board but not for
room; and
(D) for all other students shall be an
allowance based on the expenses reasonably
incurred by such students for room and board;
(4) for less than half-time students (as determined
by the institution), tuition and fees and an allowance
for only--
(A) books, supplies, and transportation (as
determined by the institution);
(B) dependent care expenses (determined in
accordance with paragraph (8)); and
(C) room and board costs (determined in
accordance with paragraph (3)), except that a
student may receive an allowance for such costs
under this subparagraph for not more than 3
semesters or the equivalent, of which not more
than 2 semesters or the equivalent may be
consecutive;
(5) for a student engaged in a program of study by
correspondence, only tuition and fees and, if required,
books and supplies, travel, and room and board costs
incurred specifically in fulfilling a required period
of residential training;
(6) for incarcerated students only tuition and fees
and, if required, books and supplies;
(7) for a student enrolled in an academic program in
a program of study abroad approved for credit by the
student's home institution, reasonable costs associated
with such study (as determined by the institution at
which such student is enrolled);
(8) for a student with one or more dependents, an
allowance based on the estimated actual expenses
incurred for such dependent care, based on the number
and age of such dependents, except that--
(A) such allowance shall not exceed the
reasonable cost in the community in which such
student resides for the kind of care provided;
and
(B) the period for which dependent care is
required includes, but is not limited to,
class-time, study-time, field work,
internships, and commuting time;
(9) for a student with a disability, an allowance (as
determined by the institution) for those expenses
related to the student's disability, including special
services, personal assistance, transportation,
equipment, and supplies that are reasonably incurred
and not provided for by other assisting agencies;
[(10) for a student receiving all or part of the
student's instruction by means of telecommunications
technology, no distinction shall be made with respect
to the mode of instruction in determining costs;]
[(11)] (10) for a student engaged in a work
experience under a cooperative education program, an
allowance for reasonable costs associated with such
employment (as determined by the institution);
[(12)] (11) for a student who receives a loan under
this or any other Federal law, or, at the option of the
institution, a conventional student loan incurred by
the student to cover a student's cost of attendance at
the institution, an allowance for the actual cost of
any loan fee, origination fee, or insurance premium
charged to such student or such parent on such loan, or
the average cost of any such fee or premium charged by
the Secretary, lender, or guaranty agency making or
insuring such loan, as the case may be; and
[(13)] (12) at the option of the institution, for a
student in a program requiring professional licensure
or certification, the one-time cost of obtaining the
first professional credentials (as determined by the
institution).
* * * * * * *
SEC. 479. SIMPLIFIED NEEDS TESTS.
(a) Simplified Application Section.--
(1) In general.--The Secretary shall develop and use
an easily identifiable simplified application section
as part of the common financial reporting form
prescribed under section 483(a) for families described
in subsections (b) and (c) of this section.
(2) Reduced data requirements.--The simplified
application form shall--
(A) in the case of a family meeting the
requirements of subsection (b)(1), permit such
family to submit only the data elements
required under subsection (b)(2) for the
purposes of establishing eligibility for
student financial aid under this part; and
(B) in the case of a family meeting the
requirements of subsection (c), permit such
family to be treated as having an expected
family contribution equal to zero for purposes
of establishing such eligibility and to submit
only the data elements required to make a
determination under subsection (c).
(b) Simplified Needs Test.--
(1) Eligibility.--An applicant is eligible to file a
simplified form containing the elements required by
paragraph (2) if--
(A) in the case of an applicant who is a
dependent student--
(i) the student's parents--
(I) file, or are eligible to
file, a form described in
paragraph (3);
(II) certify that the parents
are not required to file a
Federal income tax return;
(III) include at least one
parent who is a dislocated
worker; or
(IV) received, or the student
received, benefits at some time
during the previous 24-month
period under a means-tested
Federal benefit program as
defined under subsection (d);
and
(ii) the total adjusted gross income
of the parents (excluding any income of
the dependent student) is less than
[$50,000] $100,000; or
(B) in the case of an applicant who is an
independent student--
(i) the student (and the student's
spouse, if any)--
(I) files, or is eligible to
file, a form described in
paragraph (3);
(II) certifies that the
student (and the student's
spouse, if any) is not required
to file a Federal income tax
return;
(III) is a dislocated worker
or has a spouse who is a
dislocated worker; or
(IV) received benefits at
some time during the previous
24-month period under a means-
tested Federal benefit program
as defined under subsection
(d); and
(ii) the adjusted gross income of the
student (and the student's spouse, if
any) is less than [$50,000] $100,000.
(2) Simplified test elements.--The six elements to be
used for the simplified needs analysis are--
(A) adjusted gross income,
(B) Federal taxes paid,
(C) untaxed income and benefits,
(D) the number of family members,
(E) the number of family members in
postsecondary education, and
(F) an allowance (A) for State and other
taxes, as defined in section 475(c)(2) for
dependent students and in section 477(b)(2) for
independent students with dependents other than
a spouse, or (B) for State and other income
taxes, as defined in section 476(b)(2) for
independent students without dependents other
than a spouse.
(3) Qualifying forms.--In the case of an independent
student, the student, or in the case of a dependent
student, the family, files a form described in this
subsection, or subsection (c), as the case may be, if
the student or family, as appropriate, files--
(A) a form 1040A or 1040EZ (including any
prepared or electronic version of such form)
required pursuant to the Internal Revenue Code
of 1986;
(B) a form 1040 (including any prepared or
electronic version of such form) required
pursuant to the Internal Revenue Code of 1986,
except that such form shall be considered a
qualifying form only if the student or family
files such form in order to take a tax credit
under section 25A of the Internal Revenue Code
of 1986, and would otherwise be eligible to
file a form described in subparagraph (A); or
(C) an income tax return (including any
prepared or electronic version of such return)
required pursuant to the tax code of the
Commonwealth of Puerto Rico, Guam, American
Samoa, the Virgin Islands, the Republic of the
Marshall Islands, the Federated States of
Micronesia, or Palau.
(c) Zero Expected Family Contribution.--The Secretary shall
consider an applicant to have an expected family contribution
equal to zero if--
(1) in the case of a dependent student--
(A) the student's parents--
(i) file, or are eligible to file, a
form described in subsection (b)(3);
(ii) certify that the parents are not
required to file a Federal income tax
return;
(iii) include at least one parent who
is a dislocated worker; or
(iv) received, or the student
received, benefits at some time during
the previous 24-month period under a
means-tested Federal benefit program as
defined under subsection (d); and
(B) the sum of the adjusted gross income of
the parents is less than or equal to $23,000;
or
(2) in the case of an independent student with
dependents other than a spouse--
(A) the student (and the student's spouse, if
any)--
(i) files, or is eligible to file, a
form described in subsection (b)(3);
(ii) certifies that the student (and
the student's spouse, if any) is not
required to file a Federal income tax
return;
(iii) is a dislocated worker or has a
spouse who is a dislocated worker; or
(iv) received benefits at some time
during the previous 24-month period
under a means-tested Federal benefit
program as defined under subsection
(d); and
(B) the sum of the adjusted gross income of
the student and spouse (if appropriate) is less
than or equal to $23,000.
An individual is not required to qualify or file for the earned
income credit in order to be eligible under this subsection.
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).
(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
``means-tested Federal benefit program'' means a
mandatory spending program of the Federal Government,
other than a program under this title, in which
eligibility for the program's benefits, or the amount
of such benefits, are determined on the basis of income
or resources of the individual or family seeking the
benefit, and may include such programs as--
(A) the supplemental security income program
under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.);
(B) the supplemental nutrition assistance
program under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.);
(C) the free and reduced price school lunch
program established under the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.);
(D) the program of block grants for States
for temporary assistance for needy families
established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
(E) the special supplemental nutrition
program for women, infants, and children
established by section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786); and
(F) other programs identified by the
Secretary.
SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.
(a) In General.--Nothing in this part shall be interpreted as
limiting the authority of the financial aid administrator, on
the basis of adequate documentation, to make adjustments on a
case-by-case basis to the cost of attendance or the values of
the data items required to calculate the expected student or
parent contribution (or both) to allow for treatment of an
individual eligible applicant with special circumstances.
However, this authority shall not be construed to permit aid
administrators to deviate from the contributions expected in
the absence of special circumstances. Special circumstances may
include tuition expenses at an elementary or secondary school,
medical, dental, or nursing home expenses not covered by
insurance, unusually high child care or dependent care costs,
recent unemployment of a family member or an independent
student, a student or family member who is a dislocated worker
(as defined in section 101 of the Workforce Investment Act of
1998), the number of parents enrolled at least half-time in a
degree, certificate, or other program leading to a recognized
educational credential at an institution with a program
participation agreement under section 487, a change in housing
status that results in an individual being homeless (as defined
in section 103 of the McKinney-Vento Homeless Assistance Act),
or other changes in a family's income, a family's assets, or a
student's status. Special circumstances shall be conditions
that differentiate an individual student from a class of
students rather than conditions that exist across a class of
students. Adequate documentation for such adjustments shall
substantiate such special circumstances of individual students.
In addition, nothing in this title shall be interpreted as
limiting the authority of the student financial aid
administrator in such cases (1) to request and use
supplementary information about the financial status or
personal circumstances of eligible applicants in selecting
recipients and determining the amount of awards under this
title, or (2) to offer a dependent student [financial
assistance under section 428H or a Federal Direct Unsubsidized
Stafford Loan] a Federal Direct Unsubsidized Stafford Loan or a
Federal ONE Loan without requiring the parents of such student
to file the financial aid form prescribed under section 483 if
the student financial aid administrator verifies that the
parent or parents of such student have ended financial support
of such student and refuse to file such form. No student or
parent shall be charged a fee for collecting, processing, or
delivering such supplementary information.
(b) Adjustments to Assets Taken Into Account.--A student
financial aid administrator shall be considered to be making a
necessary adjustment in accordance with subsection (a) if--
(1) the administrator makes adjustments excluding
from family income any proceeds of a sale of farm or
business assets of a family if such sale results from a
voluntary or involuntary foreclosure, forfeiture, or
bankruptcy or an involuntary liquidation; or
(2) the administrator makes adjustments in the award
level of a student with a disability so as to take into
consideration the additional costs such student incurs
as a result of such student's disability.
(c) Refusal or Adjustment of Loan Certifications.--On a case-
by-case basis, an eligible institution may refuse to certify a
statement that permits a student to receive a loan under [part
B or D] part D or E, or may certify a loan amount or make a
loan that is less than the student's determination of need (as
determined under this part), if the reason for the action is
documented and provided in written form to the student. No
eligible institution shall discriminate against any borrower or
applicant in obtaining a loan on the basis of race, national
origin, religion, sex, marital status, age, or disability
status.
(d) Adjustment Based on Delivery of Instruction.--A student's
eligibility to receive grants, loans, or work assistance under
this title shall be reduced if a financial aid officer
determines, in accordance with the discretionary authority
provided under this section, that the model or method used to
deliver instruction to the student results in a substantially
reduced cost of attendance to the student.
* * * * * * *
SEC. 480. DEFINITIONS.
As used in this part:
(a) Total Income.--(1)(A) Except as provided in subparagraph
(B) and paragraph (2), the term ``total income'' is equal to
adjusted gross income plus untaxed income and benefits for the
preceding tax year minus excludable income (as defined in
subsection (e)).
[(B) Notwithstanding section 478(a), the Secretary may
provide for the use of data from the second preceding tax year
when and to the extent necessary to carry out the
simplification of applications (including simplification for a
subset of applications) used for the estimation and
determination of financial aid eligibility. Such simplification
may include the sharing of data between the Internal Revenue
Service and the Department, pursuant to the consent of the
taxpayer.]
(B) Notwithstanding section 478(a), the Secretary shall
provide for the use of data from the second preceding tax year
to carry out the simplification of applications (including
simplification for a subset of applications) used for the
estimation and determination of financial aid eligibility. Such
simplification shall include the sharing of data between the
Internal Revenue Service and the Department, pursuant to the
consent of the taxpayer.
(2) No portion of any student financial assistance received
from any program by an individual, no portion of veterans'
education benefits received by an individual, no portion of a
national service educational award or post-service benefit
received by an individual under title I of the National and
Community Service Act of 1990 (42 U.S.C. 12511 et seq.), no
portion of any tax credit taken under section 25A of the
Internal Revenue Code of 1986, and no distribution from any
qualified education benefit described in subsection (f)(3) that
is not subject to Federal income tax, shall be included as
income or assets in the computation of expected family
contribution for any program funded in whole or in part under
this Act.
(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,
dependency, 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), except that the value of on-base
military housing or the value of basic
allowance for housing determined under section
403(b) of title 37, United States Code,
received by the parents, in the case of a
dependent student, or the student or student's
spouse, in the case of an independent student,
shall be excluded;
(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 retirement 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--
(A) the amount of additional child tax credit
claimed for Federal income tax purposes;
(B) welfare benefits, including assistance
under a State program funded under part A of
title IV of the Social Security Act and aid to
dependent children;
(C) the amount of earned income credit
claimed for Federal income tax purposes;
(D) the amount of credit for Federal tax on
special fuels claimed for Federal income tax
purposes;
(E) the amount of foreign income excluded for
purposes of Federal income taxes; or
(F) untaxed social security benefits.
(c) Veteran and Veterans' Education Benefits.--(1) The term
``veteran'' means any individual who--
(A) has engaged in the active duty in the United
States Army, Navy, Air Force, Marines, or Coast Guard;
and
(B) was released under a condition other than
dishonorable.
(2) The term ``veterans' education benefits'' means veterans'
benefits the student will receive during the award year,
including but not limited to benefits under the following
provisions of law:
(A) Chapter 103 of title 10, United States Code
(Senior Reserve Officers' Training Corps).
(B) Chapter 106A of title 10, United States Code
(Educational Assistance for Persons Enlisting for
Active Duty).
(C) Chapter 1606 of title 10, United States Code
(Selected Reserve Educational Assistance Program).
(D) Chapter 1607 of title 10, United States Code
(Educational Assistance Program for Reserve Component
Members Supporting Contingency Operations and Certain
Other Operations).
(E) Chapter 30 of title 38, United States Code (All-
Volunteer Force Educational Assistance Program, also
known as the ``Montgomery GI Bill--active duty'').
(F) Chapter 31 of title 38, United States Code
(Training and Rehabilitation for Veterans with Service-
Connected Disabilities).
(G) Chapter 32 of title 38, United States Code (Post-
Vietnam Era Veterans' Educational Assistance Program).
(H) Chapter 33 of title 38, United States Code (Post-
9/11 Educational Assistance).
(I) Chapter 35 of title 38, United States Code
(Survivors' and Dependents' Educational Assistance
Program).
(J) Section 903 of the Department of Defense
Authorization Act, 1981 (10 U.S.C. 2141 note)
(Educational Assistance Pilot Program).
(K) Section 156(b) of the ``Joint Resolution making
further continuing appropriations and providing for
productive employment for the fiscal year 1983, and for
other purposes'' (42 U.S.C. 402 note) (Restored
Entitlement Program for Survivors, also known as
``Quayle benefits'').
(L) The provisions of chapter 3 of title 37, United
States Code, related to subsistence allowances for
members of the Reserve Officers Training Corps.
(d) Independent Student.--
(1) Definition.--The term ``independent'', when used
with respect to a student, means any individual who--
(A) is 24 years of age or older by December
31 of the award year;
(B) is an orphan, in foster care, or a ward
of the court, or was an orphan, in foster care,
or a ward of the court at any time when the
individual was 13 years of age or older;
(C) is, or was immediately prior to attaining
the age of majority, an emancipated minor or in
legal guardianship as determined by a court of
competent jurisdiction in the individual's
State of legal residence;
(D) is a veteran of the Armed Forces of the
United States (as defined in subsection (c)(1))
or is currently serving on active duty in the
Armed Forces for other than training purposes;
(E) is a graduate or professional student;
(F) is a married individual;
(G) has legal dependents other than a spouse;
(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
homelessness, 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 subtitle 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
(I) is a student for whom a financial aid
administrator makes a documented determination
of independence by reason of other unusual
circumstances.
(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.
(e) Excludable Income.--The term ``excludable income''
means--
(1) any student financial assistance awarded based on
need as determined in accordance with the provisions of
this part, including any income earned from work under
part C of this title;
(2) any income earned from work under a cooperative
education program offered by an institution of higher
education;
(3) any living allowance received by a participant in
a program established under the National and Community
Service Act of 1990;
(4) child support payments made by the student or
parent;
(5) payments made and services provided under part E
of title IV of the Social Security Act; and
(6) special combat pay.
(f) Assets.--(1) The term ``assets'' means cash on hand,
including the amount in checking and savings accounts, time
deposits, money market funds, trusts, stocks, bonds, other
securities, mutual funds, tax shelters, qualified education
benefits (except as provided in paragraph (3)), and the net
value of real estate, income producing property, and business
and farm assets.
(2) With respect to determinations of need under this title,
other than for subpart 4 of part A, the term ``assets'' shall
not include the net value of--
(A) the family's principal place of residence;
(B) a family farm on which the family resides; [or]
(C) a small business with not more than 100 full-time
or full-time equivalent employees (or any part of such
a small business) that is owned and controlled by the
family[.]; or
(D) a qualified tuition program (as defined in
section 529(b)(1)(A) of the Internal Revenue Code of
1986).
(3) A qualified education benefit shall be considered
an asset of--
(A) the student if the student is an
independent student; 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.
(4) In determining the value of assets in a determination of
need under this title (other than for subpart 4 of part A), the
value of a qualified education benefit shall be--
(A) the refund value of any tuition credits or
certificates purchased under a qualified education
benefit; and
(B) in the case of a program in which contributions
are made to an account that is established for the
purpose of meeting the qualified higher education
expenses of the designated beneficiary of the account,
the current balance of such account.
(5) In this subsection:
(A) The term ``qualified education benefit'' means--
(i) a [qualified tuition program (as defined
in section 529(b)(1)(A) of the Internal Revenue
Code of 1986) or other] prepaid tuition plan
offered by a State; and
(ii) a Coverdell education savings account
(as defined in section 530(b)(1) of the
Internal Revenue Code of 1986).
(B) The term ``qualified higher education expenses''
has the meaning given the term in section 529(e) of the
Internal Revenue Code of 1986.
(g) Net Assets.--The term ``net assets'' means the current
market value at the time of application of the assets (as
defined in subsection (f)), minus the outstanding liabilities
or indebtedness against the assets.
(h) Treatment of Income Taxes Paid to Other Jurisdictions.--
(1) The tax on income paid to the Governments of the
Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin
Islands, or the Commonwealth of the Northern Mariana Islands,
the Republic of the Marshall Islands, the Federated States of
Micronesia, or Palau under the laws applicable to those
jurisdictions, or the comparable tax paid to the central
government of a foreign country, shall be treated as Federal
income taxes.
(2) References in this part to the Internal Revenue Code of
1986, Federal income tax forms, and the Internal Revenue
Service shall, for purposes of the tax described in paragraph
(1), be treated as references to the corresponding laws, tax
forms, and tax collection agencies of those jurisdictions,
respectively, subject to such adjustments as the Secretary may
provide by regulation.
(i) Current Balance.--The term ``current balance of checking
and savings accounts'' does not include any funds over which an
individual is barred from exercising discretion and control
because of the actions of any State in declaring a bank
emergency due to the insolvency of a private deposit insurance
fund.
(j) Other Financial Assistance.--(1) For purposes of
determining a student's eligibility for funds under this title,
estimated financial assistance not received under this title
shall include all scholarships, grants, loans, or other
assistance known to the institution at the time the
determination of the student's need is made, including national
service educational awards or post-service benefits under title
I of the National and Community Service Act of 1990 (42 U.S.C.
12511 et seq.), but excluding veterans' education benefits as
defined in subsection (c).
(2) Notwithstanding paragraph (1), a tax credit taken under
section 25A of the Internal Revenue Code of 1986, 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, shall not be treated as
estimated financial assistance for purposes of section 471(3).
(3) Notwithstanding paragraph (1) and section 472, assistance
not received under this title may be excluded from both
estimated financial assistance and cost of attendance, if that
assistance is provided by a State and is designated by such
State to offset a specific component of the cost of attendance.
If that assistance is excluded from either estimated financial
assistance or cost of attendance, it shall be excluded from
both.
(4) Notwithstanding paragraph (1), special combat pay
shall not be treated as estimated financial assistance
for purposes of section 471(3).
(k) Dependents.--(1) Except as otherwise provided, the term
``dependent of the parent'' means the student, dependent
children of the student's parents, including those children who
are deemed to be dependent students when applying for aid under
this title, and other persons who live with and receive more
than one-half of their support from the parent and will
continue to receive more than half of their support from the
parent during the award year.
(2) Except as otherwise provided, the term ``dependent of the
student'' means the student's dependent children and other
persons (except the student's spouse) who live with and receive
more than one-half of their support from the student and will
continue to receive more than half of their support from the
student during the award year.
(l) Family Size.--(1) In determining family size in the case
of a dependent student--
(A) if the parents are not divorced or separated,
family members include the student's parents, and the
dependents of the student's parents including the
student;
(B) if the parents are divorced or separated, family
members include the parent whose income is included in
computing available income and that parent's
dependents, including the student; and
(C) if the parents are divorced and the parent whose
income is so included is remarried, or if the parent
was a widow or widower who has remarried, family
members also include, in addition to those individuals
referred to in subparagraph (B), the new spouse and any
dependents of the new spouse if that spouse's income is
included in determining the parents' adjusted available
income.
(2) In determining family size in the case of an independent
student--
(A) family members include the student, the student's
spouse, and the dependents of the student; and
(B) if the student is divorced or separated, family
members do not include the spouse (or ex-spouse), but
do include the student and the student's dependents.
(m) Business Assets.--The term ``business assets'' means
property that is used in the operation of a trade or business,
including real estate, inventories, buildings, machinery, and
other equipment, patents, franchise rights, and copyrights.
(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.
Part G--General Provisions Relating to Student Assistance Programs
SEC. 481. DEFINITIONS.
(a) Academic and Award Year.--(1) For the purpose of any
program under this title, the term ``award year'' shall be
defined as the period beginning July 1 and ending June 30 of
the following year.
(2)(A) [For the] Except as provided in paragraph (3), for the
purpose of any program under this title, the term ``academic
year'' shall--
(i) [require a minimum of 30 weeks] require--
(I) a minimum of 30 weeks of instructional
time for a course of study that measures its
program length in credit hours; or
[(ii)] (II) [require] a minimum of 26 weeks
of instructional time for a course of study
that measures its program length in clock
hours; and
[(iii)] (ii) require an undergraduate course of study
to contain an amount of instructional time whereby a
full-time student is expected to complete at least--
(I) 24 semester or trimester hours or 36
quarter credit hours in a course of study that
measures its program length in credit hours; or
(II) 900 clock hours in a course of study
that measures its program length in clock
hours.
(B) The Secretary may reduce such minimum of 30 weeks to not
less than 26 weeks for good cause, as determined by the
Secretary on a case-by-case basis, in the case of an
institution of higher education that provides a 2-year or 4-
year program of instruction for which the institution awards an
associate or baccalaureate degree and that measures program
length in credit hours or clock hours.
(3)(A) For the purpose of a competency-based education
program the term ``academic year'' shall be the published
measured period established by the institution of higher
education that is necessary for a student with a normal full-
time workload for the course of study the student is pursuing
(as measured using the value of competencies or sets of
competencies required by such institution and approved by such
institution's accrediting agency or association) to earn--
(i) one-quarter of a bachelor's degree;
(ii) one-half of an associate's degree; or
(iii) with respect to a non-degree or graduate
program, the equivalent of a period described in clause
(i) or (ii).
(B)(i) A competency-based education program that is not a
term-based program may be treated as a term-based program for
purposes of establishing payment periods for disbursement of
loans and grants under this title if--
(I) the institution of higher education that offers
such program charges a flat subscription fee for access
to instruction during a period determined by the
institution; and
(II) the institution is able to determine the
competencies a student is expected to demonstrate for
such subscription period.
(ii) Clause (i) shall apply even in a case in which
instruction or other work with respect to a competency
that is expected to be attributable to a subscription
period begins prior to such subscription period.
(iii) In a case in which a competency-based education
program offered by an institution of higher education
is treated as a term-based program under clause (i),
the institution shall review the academic progress of
each student enrolled in such program in accordance
with section 484(c), except that such review shall
occur at the end of each payment period.
[(b) Eligible Program.--(1) For purposes of this title, the
term ``eligible program'' means a program of at least--
[(A) 600 clock hours of instruction, 16 semester
hours, or 24 quarter hours, offered during a minimum of
15 weeks, in the case of a program that--
[(i) provides a program of training to
prepare students for gainful employment in a
recognized profession; and
[(ii) admits students who have not completed
the equivalent of an associate degree; or
[(B) 300 clock hours of instruction, 8 semester
hours, or 12 hours, offered during a minimum of 10
weeks, in the case of--
[(i) an undergraduate program that requires
the equivalent of an associate degree for
admissions; or
[(ii) a graduate or professional program.
[(2)(A) A program is an eligible program for purposes of part
B of this title if it is a program of at least 300 clock hours
of instruction, but less than 600 clock hours of instruction,
offered during a minimum of 10 weeks, that--
[(i) has a verified completion rate of at least 70
percent, as determined in accordance with the
regulations of the Secretary;
[(ii) has a verified placement rate of at least 70
percent, as determined in accordance with the
regulations of the Secretary; and
[(iii) satisfies such further criteria as the
Secretary may prescribe by regulation.
[(B) In the case of a program being determined eligible for
the first time under this paragraph, such determination shall
be made by the Secretary before such program is considered to
have satisfied the requirements of this paragraph.
[(3) An otherwise eligible program that is offered in whole
or in part through telecommunications is eligible for the
purposes of this title if the program is offered by an
institution, other than a foreign institution, that has been
evaluated and determined (before or after the date of enactment
of the Higher Education Reconciliation Act of 2005) to have the
capability to effectively deliver distance education programs
by an accrediting agency or association that--
[(A) is recognized by the Secretary under subpart 2
of part H; and
[(B) has evaluation of distance education programs
within the scope of its recognition, as described in
section 496(n)(3).
[(4) For purposes of this title, the term ``eligible
program'' includes an instructional program that, in lieu of
credit hours or clock hours as the measure of student learning,
utilizes direct assessment of student learning, or recognizes
the direct assessment of student learning by others, if such
assessment is consistent with the accreditation of the
institution or program utilizing the results of the assessment.
In the case of a program being determined eligible for the
first time under this paragraph, such determination shall be
made by the Secretary before such program is considered to be
an eligible program.]
(b) Eligible Program.--(1) For purposes of this title, the
term ``eligible program'' means--
(A) a program of at least 300 clock hours of
instruction, 8 semester hours, or 12 quarter hours,
offered during a minimum of 10 weeks; or
(B) a competency-based program that--
(i) has been evaluated and approved by an
accrediting agency or association that--
(I) is recognized by the Secretary
under subpart 2 of part H; and
(II) has evaluation of competency-
based education programs within the
scope of its recognition in accordance
with section 496(a)(4)(C); or
(ii) as of the day before the date of
enactment of the PROSPER Act, met the
requirements of a direct assessment program
under section 481(b)(4) (as such section was in
effect on the day before such date of
enactment).
(2) An eligible program described in paragraph (1) may be
offered in whole or in part through telecommunications.
(3) For purposes of this title, the term ``eligible program''
does not include a program that loses its eligibility under
section 481B(a).
(4)(A) If an eligible institution enters into a written
arrangement with an institution or organization that is not an
eligible institution under which such ineligible institution or
organization provides the educational program (in whole or in
part) of students enrolled in the eligible institution, the
educational program provided by such ineligible institution
shall be considered to be an eligible program if--
(i) the ineligible institution or
organization has not--
(I) had its eligibility to
participate in the programs under this
title terminated by the Secretary;
(II) voluntarily withdrawn from
participation in the programs under
this title under a proceeding initiated
by the Secretary, accrediting agency or
association, guarantor, or the
licensing agency for the State in which
the institution is located, including a
termination, show-cause, or suspension;
(III) had its certification under
subpart 3 of part H to participate in
the programs under this title revoked
by the Secretary;
(IV) had its application for
recertification under subpart 3 of part
H to participate in the programs under
this title denied by the Secretary; or
(V) had its application for
certification under subpart 3 of part H
to participate in the programs under
this title denied by the Secretary;
(ii) the educational program offered by the
institution that grants the degree or
certificate otherwise satisfies the
requirements of paragraph (1); and
(iii)(I) the ineligible institution or
organization provides 25 percent or less of the
educational program; or
(II)(aa) the ineligible institution or
organization provides more than 25 percent of
the educational program; and
(bb) the eligible institution's accrediting
agency or association has determined that the
eligible institution's arrangement meets the
agency's standards for the contracting out of
educational services in accordance with section
496(c)(5)(B)(iv).
(B) For purposes of subparagraph (A), the term ``eligible
institution'' means an institution described in section 487(a).
(c) Third Party Servicer.--For purposes of this title, the
term ``third party servicer'' means any individual, any State,
or any private, for-profit or nonprofit organization, which
enters into a contract with--
(1) any eligible institution of higher education to
administer, through either manual or automated
processing, any aspect of such institution's student
assistance programs under this title; or
(2) any guaranty agency, or any eligible lender, to
administer, through either manual or automated
processing, any aspect of such guaranty agency's or
lender's student loan programs under [part B of] this
title, including originating, guaranteeing, monitoring,
processing, servicing, or collecting loans.
(d) Definitions for Military Deferments.--For purposes of
parts B, D, and E of this title:
(1) Active duty.--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 does not
include active duty for training or attendance at a
service school.
(2) Military operation.--The term ``military
operation'' means a contingency operation as such term
is defined in section 101(a)(13) of title 10, United
States Code.
(3) National emergency.--The term ``national
emergency'' means the national emergency by reason of
certain terrorist attacks declared by the President on
September 14, 2001, or subsequent national emergencies
declared by the President by reason of terrorist
attacks.
(4) Serving on active duty.--The term ``serving on
active duty during a war or other military operation or
national emergency'' means service by an individual who
is--
(A) a Reserve of an Armed Force ordered to
active duty under section 12301(a), 12301(g),
12302, 12304, or 12306 of title 10, United
States Code, or any retired member of an Armed
Force ordered to active duty under section 688
of such title, for service in connection with a
war or other military operation or national
emergency, regardless of the location at which
such active duty service is performed; and
(B) any other member of an Armed Force on
active duty in connection with such emergency
or subsequent actions or conditions who has
been assigned to a duty station at a location
other than the location at which such member is
normally assigned.
(5) Qualifying national guard duty.--The term
``qualifying National Guard duty during a war or other
military operation or national emergency'' means
service as a member of the National Guard on full-time
National Guard duty (as defined in section 101(d)(5) of
title 10, United States Code) under a call to active
service authorized by the President or the Secretary of
Defense for a period of more than 30 consecutive days
under section 502(f) of title 32, United States Code,
in connection with a war, other military operation, or
a national emergency declared by the President and
supported by Federal funds.
(e) Consumer Reporting Agency.--For purposes of this title,
the term ``consumer reporting agency'' has the meaning given
the term ``consumer reporting agency that compiles and
maintains files on consumers on a nationwide basis'' in Section
603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)).
(f) Definition of Educational Service Agency.--For purposes
of parts B, D, and E, the term ``educational service agency''
has the meaning given the term in section 8101 of the
Elementary and Secondary Education Act of 1965.
* * * * * * *
SEC. 481B. PROGRAMMATIC LOAN REPAYMENT RATES.
(a) Ineligibility of an Educational Program Based on Low
Repayment Rates.--
(1) In general.--With respect to fiscal year 2016 and
each succeeding fiscal year, an educational program at
an institution of higher education whose loan repayment
rate is less than 45 percent for each of the 3 most
recent fiscal years for which data are available shall
not be considered an eligible program for the fiscal
year in which the determination is made and for the 2
succeeding fiscal years, unless, not later than 30 days
after receiving notification from the Secretary of the
loss of eligibility under this paragraph, the
institution appeals the loss of such program's
eligibility to the Secretary.
(2) Appeal.--The Secretary shall issue a decision on
any such appeal within 45 days after its submission.
Such decision may permit a program to be considered an
eligible program, if--
(A) the institution demonstrates to the
satisfaction of the Secretary that--
(i) the Secretary's calculation of
such program's loan repayment rate is
not accurate; and
(ii) recalculation would increase
such program's loan repayment rate for
any of the 3 fiscal years equal to or
greater than 45 percent; or
(B) the program is not subject to paragraph
(1) by reason of paragraph (3).
(3) Participation rate index.--
(A) In general.--An institution that
demonstrates to the Secretary that a program's
participation rate index is equal to or less
than 0.11 for any of the 3 most recent fiscal
years for which data is available shall not be
subject to paragraph (1).
(B) Index calculation.--The participation
rate index for a program shall be determined by
multiplying--
(i) the amount of the difference
between--
(I) 1.0; and
(II) the quotient that
results by dividing--
(aa) the program's
loan repayment rate for
a fiscal year, or the
weighted average loan
repayment rate for a
fiscal year, by
(bb) 100; and
(ii) the quotient that results by
dividing--
(I) the percentage of the
program's regular students,
enrolled on at least a half-
time basis, who received a
covered loan for a 12-month
period ending during the 6
months immediately preceding
the fiscal year for which the
program's loan repayment rate
or the weighted average loan
repayment rate is determined,
by
(II) 100.
(C) Data.--An institution shall provide the
Secretary with sufficient data to determine the
program's participation rate index not later
than 30 days after receiving an initial
notification of the program's draft loan
repayment rate under subsection (d)(4)(C).
(D) Notification.--Prior to publication of a
final loan repayment rate under subsection
(d)(4)(A) for a program at an institution that
provides the data described in subparagraph
(C), the Secretary shall notify the institution
of the institution's compliance or
noncompliance with subparagraph (A).
(b) Repayment Improvement and Assessment of Eligibility Based
on Low Loan Repayment Rates.--
(1) First year.--
(A) In general.--An institution with a
program whose loan repayment rate is less than
45 percent for any fiscal year shall establish
a repayment improvement task force to prepare a
plan to--
(i) identify the factors causing such
program's loan repayment rate to fall
below such percent;
(ii) establish measurable objectives
and the steps to be taken to improve
the program's loan repayment rate; and
(iii) specify actions that the
institution can take to improve student
loan repayment, including appropriate
counseling regarding loan repayment
options.
(B) Technical assistance.--Each institution
subject to this paragraph shall submit the plan
under subparagraph (A) to the Secretary, who
shall review the plan and offer technical
assistance to the institution to promote
improved student loan repayment.
(2) Second consecutive year.--
(A) In general.--An institution with a
program whose loan repayment rate is less than
45 percent for two consecutive fiscal years,
shall--
(i) require the institution's
repayment improvement task force
established under paragraph (1) to
review and revise the plan required
under such paragraph; and
(ii) submit such revised plan to the
Secretary.
(B) Review by the Secretary.--The Secretary--
(i) shall review each revised plan
submitted in accordance with this
paragraph; and
(ii) may direct that such plan be
amended to include actions, with
measurable objectives, that the
Secretary determines, based on
available data and analyses of student
loan repayment and non-repayment, will
promote student loan repayment.
(c) Programmatic Loan Repayment Rate Defined.--
(1) In general Except as provided in subsection (d),
for purposes of this section, the term ``loan repayment
rate'' means, when used with respect to an educational
program at an institution--
(A) with respect to any fiscal year in which
30 or more current and former students in such
program enter repayment on a covered loan
received for attendance in such program, the
percentage of such current and former
students--
(i) who enter repayment in such
fiscal year on a covered loan received
for attendance in such program; and
(ii) who are in a positive repayment
status on each such covered loan at the
end of the second fiscal year following
the fiscal year in which such students
entered repayment on such loan; and
(B) with respect to any fiscal year in which
fewer than 30 of the current and former
students in such program enter repayment on a
covered loan received for attendance in such
program, the percentage of such current and
former students--
(i) who, in any of the three most
recent fiscal years, entered repayment
on a covered loan received for
attendance in such program; and
(ii) who are in a positive repayment
status on each such covered loan at the
end of the second fiscal year following
the fiscal year in which such students
entered repayment on such loan.
(2) Guaranty agency requirements.--The Secretary
shall require that each guaranty agency that has
insured loans for current or former students of the
institution afford such institution a reasonable
opportunity (as specified by the Secretary) to review
and correct errors in the information required to be
provided to the Secretary by the guaranty agency for
the purposes of calculating a loan repayment rate for
programs at such institution, prior to the calculation
of such rate.
(3) Positive repayment status.--For purposes of this
section, the term ``positive repayment status'', when
used with respect to a borrower of a covered loan,
means--
(A) the borrower has entered repayment on
such loan, and such loan is less than 90 days
delinquent;
(B) the loan is paid in full (but not through
consolidation); or
(C) with respect to a covered loan that is a
Federal ONE Loan, the loan is in a deferment
described in 469A(b)(1), and with respect to a
covered loan made, insured, or guaranteed under
part B or made under part D, the loan is in a
deferment or forbearance that is comparable to
a deferment described in 469A(b)(1).
(4) Covered loan.--For purposes of this section--
(A) the term ``covered loan'' means--
(i) a loan made, insured, or
guaranteed under section 428 or 428H;
(ii) a Federal Direct Stafford Loan;
(iii) a Federal Direct Unsubsidized
Stafford Loan;
(iv) a Federal Direct PLUS Loan
issued to a graduate or professional
student;
(v) a Federal ONE Loan (other than a
Federal ONE Parent Loan or a Federal
ONE Consolidation Loan not described in
clause (vi)); or
(vi) the portion of a loan made under
section 428C, a Federal Direct
Consolidation Loan, or a Federal ONE
Consolidation Loan that is used to
repay any covered loan described in
clauses (i) through (v); and
(B) the term ``covered loan'' does not
include a loan described in subparagraph (A)
that has been discharged under section 437(a).
(d) Special Rules.--
(1) In general.--In the case of a student who has
attended and borrowed at more than one institution of
higher education or for more than one educational
program at an institution, the student (and such
student's subsequent positive repayment status on a
covered loan, if applicable)) shall be attributed to
each institution of higher education and educational
program for attendance at which the student received a
loan that entered repayment for the fiscal year for
which the loan repayment rate is being calculated.
(2) Delinquent.--A loan on which a payment is made by
an institution of higher education, such institutions's
owner, agent, contractor, employee, or any other entity
or individual affiliated with such institution, in
order to prevent the borrower from being more than 90
days delinquent on the loan, shall be considered more
than 90 days delinquent for purposes of this
subsection.
(3) Regulations to prevent evasions.--The Secretary
shall prescribe regulations designed to prevent an
institution of higher education from evading the
application of a loan repayment rate determination
under this section to an educational program at such
institution through--
(A) the use of such measures as branching,
consolidation, change of ownership or control,
or any similar device; or
(B) creating a new educational program that
is substantially similar to a program
determined to be ineligible under subsection
(a).
(4) Collection and reporting of loan repayment
rates.--
(A) In general The Secretary shall publish
not less often than once every fiscal year a
report showing final loan repayment data for
each program at each institution of higher
education for which a loan repayment rate is
calculated under this section.
(B) Publication.--The Secretary shall publish
the report described in subparagraph (A) by
September 30 of each year.
(C) Drafts.--
(i) In general.--The Secretary shall
provide institutions with draft loan
repayment rates for each educational
program at the institution at least 6
months prior to the release of the
final rates under subparagraph (A).
(ii) Challenge of draft rates.--An
institution may challenge a program's
draft loan repayment rate provided
under clause (i) for any fiscal year by
demonstrating to the satisfaction of
the Secretary that such draft loan
repayment rate is not accurate.
(e) Transition Period.--
(1) During the transition period.--During the
transition period, the cohort default rate for each
institution of higher education shall be calculated
under section 435(m)(1) for each fiscal year for which
such rate has not yet been calculated and any
requirements with respect to such rates shall continue
to apply, except that the loans with respect to which
such cohort default rate shall be calculated shall be
the covered loans defined in subsection (c)(4).
(2) After the transition period.--After the
transition period, no new cohort default rates shall be
calculated for an institution of higher education and
any requirements with respect to such rates shall cease
to apply.
(3) Definitions.--For purposes of this subsection--
(A) the term ``cohort default rate'' has the
meaning given the term in section 435(m); and
(B) the term ``transition period'' means the
period--
(i) beginning on the date of
enactment of the PROSPER Act; and
(ii) ending on the date on which the
Secretary has published under
subsection (d)(4)(A) the final loan
repayment rate for each program at each
institution of higher education with
respect to each of fiscal years 2016,
2017, and 2018.
SEC. 482. MASTER CALENDAR.
(a) Secretary Required To Comply With Schedule.--To assure
adequate notification and timely delivery of student aid funds
under this title, the Secretary shall adhere to the following
calendar dates in the year preceding the award year:
(1) Development and distribution of Federal and
multiple data entry forms--
(A) by [February 1] January 15: first meeting
of the technical committee on forms design of
the Department;
(B) by [March 1] February 1: proposed
modifications, updates, and notices pursuant to
sections 478 and 483(a)(5) published in the
Federal Register;
(C) by [June 1] May 1: final modifications,
updates, and notices pursuant to sections 478
and 483(a)(5) published in the Federal
Register;
(D) by [August 15] July 15: application for
Federal student assistance and multiple data
entry data elements and instructions approved;
[(E) by August 30: final approved forms
delivered to servicers and printers;]
[(F)] (E) by [October 1] September 1: Federal
and multiple data entry forms and instructions
printed; and
[(G)] (F) by [November 1] October 1: Federal
and multiple data entry forms, instructions,
and training materials distributed.
(2) Allocations of campus-based and Pell Grant
funds--
(A) by August 1: distribution of
institutional application for campus-based
funds (FISAP) to institutions;
(B) by October 1: final date for submission
of FISAP by institutions to the Department;
(C) by November 1: final Pell Grant payment
schedule;
[(C)] (D) by November 15: edited FISAP and
computer printout received by institutions;
[(D)] (E) by December 1: appeals procedures
received by institutions;
[(E)] (F) by December 15: edits returned by
institutions to the Department;
[(F)] (G) by February 1: tentative award
levels received by institutions [and final Pell
Grant payment schedule];
[(G)] (H) by February 15: closing date for
receipt of institutional appeals by the
Department;
[(H)] (I) by March 1: appeals
process completed;
[(I)] (J) by April 1: final award
notifications sent to institutions; and
[(J)] (K) by [June 1] May 1: Pell Grant
authorization levels sent to institutions.
(3) The Secretary shall, to the extent practicable,
notify eligible institutions, guaranty agencies,
lenders, interested software providers, and, upon
request, other interested parties, by December 1 prior
to the start of an award year of minimal hardware and
software requirements necessary to administer programs
under this title.
(4) The Secretary shall attempt to conduct training
activities for financial aid administrators and others
in an expeditious and timely manner prior to the start
of an award year in order to ensure that all
participants are informed of all administrative
requirements.
(b) Timing for Reallocations.--With respect to any funds
reallocated under section [413D(d), 442(d), or 462(i)] 442(d),
the Secretary shall reallocate such funds at any time during
the course of the year that will best meet the purpose of [the
programs under subpart 3 of part A, part C, and part E,
respectively] part C. However, such reallocation shall occur at
least once each year, not later than September 30 of that year.
(c) Delay of Effective Date of Late Publications.--(1) Except
as provided in paragraph (2), any regulatory changes initiated
by the Secretary affecting the programs under this title that
have not been published in final form by November 1 prior to
the start of the award year shall not become effective until
the beginning of the second award year after such November 1
date.
(2)(A) The Secretary may designate any regulatory provision
that affects the programs under this title and is published in
final form after November 1 as one that an entity subject to
the provision may, in the entity's discretion, choose to
implement prior to the effective date described in paragraph
(1). The Secretary may specify in the designation when, and
under what conditions, an entity may implement the provision
prior to that effective date. The Secretary shall publish any
designation under this subparagraph in the Federal Register.
(B) If an entity chooses to implement a regulatory provision
prior to the effective date described in paragraph (1), as
permitted by subparagraph (A), the provision shall be effective
with respect to that entity in accordance with the terms of the
Secretary's designation.
(d) Notice to Congress.--The Secretary shall notify the
authorizing committees when a deadline included in the calendar
described in subsection (a) is not met. Nothing in this section
shall be interpreted to penalize institutions or deny them the
specified times allotted to enable them to return information
to the Secretary based on the failure of the Secretary to
adhere to the dates specified in this section.
(e) Compliance Calendar.--Prior to the beginning of each
award year, the Secretary shall provide to institutions of
higher education a list of all the reports and disclosures
required under this Act. The list shall include--
(1) the date each report or disclosure is required to
be completed and to be submitted, made available, or
disseminated;
(2) the required recipients of each report or
disclosure;
(3) any required method for transmittal or
dissemination of each report or disclosure;
(4) a description of the content of each report or
disclosure sufficient to allow the institution to
identify the appropriate individuals to be assigned the
responsibility for such report or disclosure;
(5) references to the statutory authority, applicable
regulations, and current guidance issued by the
Secretary regarding each report or disclosure; and
(6) any other information which is pertinent to the
content or distribution of the report or disclosure.
SEC. 483. FORMS AND REGULATIONS.
(a) Common Financial Aid Form Development and Processing.--
(1) In general.--The Secretary, in cooperation with
representatives of agencies and organizations involved
in student financial assistance, shall produce,
distribute, and process free of charge common financial
reporting forms as described in this subsection to be
used for application and reapplication to determine the
need and eligibility of a student for financial
assistance under parts A through E (other than subpart
4 of part A). The forms shall be made available to
applicants in both paper and electronic formats and
shall be referred to as the ``Free Application for
Federal Student Aid'' or the ``FAFSA''. The Secretary
shall work to make the FAFSA consumer-friendly and to
make questions on the FAFSA easy for students and
families to read and understand, and shall ensure that
the FAFSA is available in formats accessible to
individuals with disabilities.
(2) Paper format.--
(A) In general.--The Secretary shall develop,
make available, and process--
(i) a paper version of EZ FAFSA, as
described in subparagraph (B); and
(ii) a paper version of the other
forms described in this subsection, in
accordance with subparagraph (C), for
any applicant who does not meet the
requirements of or does not wish to use
the process described in subparagraph
(B).
(B) EZ fafsa.--
(i) In general.--The Secretary shall
develop and use, after appropriate
field testing, a simplified paper form,
to be known as the EZ FAFSA, to be used
for applicants meeting the requirements
of subsection (b) or (c) of section
479.
(ii) Reduced data requirements.--The
EZ FAFSA shall permit an applicant to
submit, for financial assistance
purposes, only the data elements
required to make a determination of
whether the applicant meets the
requirements under subsection (b) or
(c) of section 479.
(iii) State data.--The Secretary
shall include on the EZ FAFSA such data
items as may be necessary to award
State financial assistance, as provided
under paragraph (5), except that the
Secretary shall not include a State's
data if that State does not permit the
State's resident applicants to use the
EZ FAFSA for State assistance.
(iv) Free availability and
processing.--The provisions of
paragraph (6) shall apply to the EZ
FAFSA, and the data collected by means
of the EZ FAFSA shall be available to
institutions of higher education,
guaranty agencies, and States in
accordance with paragraph (10).
(C) Promoting the use of electronic fafsa.--
(i) In general.--The Secretary shall
make all efforts to encourage all
applicants to utilize the electronic
version of the forms described in
paragraph (3).
(ii) Maintenance of the fafsa in a
printable electronic file.--The
Secretary shall maintain a version of
the paper forms described in
subparagraphs (A) and (B) in a
printable electronic file that is
easily portable, accessible, and
downloadable to students on the same
website used to provide students with
the electronic version of the forms
described in paragraph (3).
(iii) Requests for printed copy.--The
Secretary shall provide a printed copy
of the full paper version of FAFSA upon
request.
(iv) Reporting requirement.--The
Secretary shall maintain data, and
periodically report to Congress, on the
impact of the digital divide on
students completing applications for
aid under this title. The Secretary
shall report on the steps taken to
eliminate the digital divide and reduce
production of the paper form described
in subparagraph (A). The Secretary's
report shall specifically address the
impact of the digital divide on the
following student populations:
(I) Independent students.
(II) Traditionally
underrepresented students.
(III) Dependent students.
(3) Electronic format.--
(A) In general.--The Secretary shall produce,
distribute, and process forms in electronic
format to meet the requirements of paragraph
(1). The Secretary shall develop an electronic
version of the forms for applicants who do not
meet the requirements of subsection (b) or (c)
of section 479.
(B) Simplified applications: fafsa on the
web.--
(i) In general.--The Secretary shall
develop and use a simplified electronic
version of the form to be used by
applicants meeting the requirements
under subsection (b) or (c) of section
479.
(ii) Reduced data requirements.--The
simplified electronic version of the
forms shall permit an applicant to
submit, for financial assistance
purposes, only the data elements
required to make a determination of
whether the applicant meets the
requirements under subsection (b) or
(c) of section 479.
(iii) Use of forms.--Nothing in this
subsection shall be construed to
prohibit the use of the forms developed
by the Secretary pursuant to this
paragraph by an eligible institution,
eligible lender, guaranty agency, State
grant agency, private computer software
provider, a consortium thereof, or such
other entities as the Secretary may
designate.
(C) State data.--The Secretary shall include
on the electronic version of the forms such
items as may be necessary to determine
eligibility for State financial assistance, as
provided under paragraph (5), except that the
Secretary shall not require an applicant to
enter data pursuant to this subparagraph that
are required by any State other than the
applicant's State of residence.
(D) Availability and processing.--The data
collected by means of the simplified electronic
version of the forms shall be available to
institutions of higher education, guaranty
agencies, and States in accordance with
paragraph (10).
(E) Privacy.--The Secretary shall ensure that
data collection under this paragraph complies
with section 552a of title 5, United States
Code, and that any entity using the electronic
version of the forms developed by the Secretary
pursuant to this paragraph shall maintain
reasonable and appropriate administrative,
technical, and physical safeguards to ensure
the integrity and confidentiality of the
information, and to protect against security
threats, or unauthorized uses or disclosures of
the information provided on the electronic
version of the forms. Data collected by such
electronic version of the forms shall be used
only for the application, award, and
administration of aid awarded under this title,
State aid, or aid awarded by eligible
institutions or such entities as the Secretary
may designate. No data collected by such
electronic version of the forms shall be used
for making final aid awards under this title
until such data have been processed by the
Secretary or a contractor or designee of the
Secretary, except as may be permitted under
this title. Notwithstanding the limitations on
sharing data described in this paragraph, an
institution of higher education may, with
explicit written consent of the applicant,
provide such information as is necessary to a
scholarship granting organization designated by
the applicant to assist the applicant in
applying for and receiving financial assistance
for the applicant's education at that
institution. An organization that receives
information pursuant to the preceding sentence
shall not maintain, warehouse, sell, or
otherwise store or share such information after
it has been used to determine the additional
aid available for such applicant and the
organization shall destroy the information
after such determination has been made.
(F) Signature.--Notwithstanding any other
provision of this Act, the Secretary may
continue to permit an electronic version of the
form under this paragraph to be submitted
without a signature, if a signature is
subsequently submitted by the applicant or if
the applicant uses a personal identification
number provided by the Secretary under
subparagraph (G).
(G) Personal identification numbers
authorized.--The Secretary may continue to
assign to an applicant a personal
identification number--
(i) to enable the applicant to use
such number as a signature for purposes
of completing an electronic version of
a form developed under this paragraph;
and
(ii) for any purpose determined by
the Secretary to enable the Secretary
to carry out this title.
(H) Personal identification number
improvement.--The Secretary shall continue to
work with the Commissioner of Social Security
to minimize the time required for an applicant
to obtain a personal identification number when
applying for aid under this title through an
electronic version of a form developed under
this paragraph.
(I) Format.--Not later than 1 year after the
date of the enactment of the PROSPER Act, the
Secretary shall make the electronic version of
the forms under this paragraph available
through a technology tool optimized for use on
mobile devices. Such technology tool shall, at
minimum, enable applicants to--
(i) save data; and
(ii) submit the FAFSA of such
applicant to the Secretary through such
tool.
(J) Consumer testing.--In developing and
maintaining the electronic version of the forms
under this paragraph and the technology tool
for mobile devices under subparagraph (I), the
Secretary shall conduct consumer testing with
appropriate persons to ensure the forms and
technology tool are designed to be easily
usable and understandable by students and
families. Such consumer testing shall include--
(i) current and prospective college
students, family members of such
students, and other individuals with
expertise in student financial
assistance application processes;
(ii) dependent students and
independent students who meet the
requirements under subsection (b) or
(c) of section 479; and
(iii) dependent students and
independent students who do not meet
the requirements under subsection (b)
or (c) of section 479.
(4) Streamlining.--
(A) Streamlined reapplication process.--
(i) In general.--The Secretary shall
continue to streamline reapplication
forms and processes for an applicant
who applies for financial assistance
under this title in the next succeeding
academic year subsequent to an academic
year for which such applicant applied
for financial assistance under this
title.
(ii) Updating of data elements.--The
Secretary shall determine, in
cooperation with States, institutions
of higher education, agencies, and
organizations involved in student
financial assistance, the data elements
that may be transferred from the
previous academic year's application
and those data elements that shall be
updated.
(iii) Reduced data authorized.--
Nothing in this title shall be
construed as limiting the authority of
the Secretary to reduce the number of
data elements required of reapplicants.
(iv) Zero family contribution.--
Applicants determined to have a zero
family contribution pursuant to section
479(c) shall not be required to provide
any financial data in a reapplication
form, except data that are necessary to
determine eligibility under such
section.
(B) Reduction of data elements.--
(i) Reduction encouraged.--Of the
number of data elements on the FAFSA
used for the 2009-2010 award year, the
Secretary, in cooperation with
representatives of agencies and
organizations involved in student
financial assistance and consistent
with efforts under subsection (c),
shall continue to reduce the number of
such data elements required to be
entered by all applicants, with the
goal of reducing such number by 50
percent.
(ii) Report.--The Secretary shall
submit a report on the process of this
reduction to each of the authorizing
committees by June 30, 2011.
(5) State requirements.--
(A) In general.--Except as provided in
paragraphs (2)(B)(iii), (3)(B), and (4)(A)(ii),
the Secretary shall include on the forms
developed under this subsection, such State-
specific data items as the Secretary determines
are necessary to meet State requirements for
need-based State aid. Such items shall be
selected in consultation with State agencies in
order to assist in the awarding of State
financial assistance in accordance with the
terms of this subsection. The number of such
data items shall not be less than the number
included on the form for the 2008-2009 award
year unless a State notifies the Secretary that
the State no longer requires those data items
for the distribution of State need-based aid.
(B) Annual review.--The Secretary shall
conduct an annual review to determine--
(i) which data items each State
requires to award need-based State aid;
and
(ii) if the State will permit an
applicant to file a form described in
paragraph (2)(B) or (3)(B).
(C) Federal register notice.--Beginning with
the forms developed under paragraphs (2)(B) and
(3)(B) for the award year 2010-2011, the
Secretary shall publish on an annual basis a
notice in the Federal Register requiring State
agencies to inform the Secretary--
(i) if the State agency is unable to
permit applicants to utilize the
simplified forms described in
paragraphs (2)(B) and (3)(B); and
(ii) of the State-specific
nonfinancial data that the State agency
requires for delivery of State need-
based financial aid.
(D) Use of simplified forms encouraged.--The
Secretary shall encourage States to take such
steps as are necessary to encourage the use of
simplified forms under this subsection,
including those forms described in paragraphs
(2)(B) and (3)(B), for applicants who meet the
requirements of subsection (b) or (c) of
section 479.
(E) Consequences if state does not accept
simplified forms.--If a State does not permit
an applicant to file a form described in
paragraph (2)(B) or (3)(B) for purposes of
determining eligibility for State need-based
financial aid, the Secretary may determine that
State-specific questions for such State will
not be included on a form described in
paragraph (2)(B) or (3)(B). If the Secretary
makes such determination, the Secretary shall
advise the State of the Secretary's
determination.
(F) Lack of state response to request for
information.--If a State does not respond to
the Secretary's request for information under
subparagraph (B), the Secretary shall--
(i) permit residents of that State to
complete simplified forms under
paragraphs (2)(B) and (3)(B); and
(ii) not require any resident of such
State to complete any data items
previously required by that State under
this section.
(G) Restriction.--The Secretary shall, to the
extent practicable, not require applicants to
complete any financial or nonfinancial data
items that are not required--
(i) by the applicant's State; or
(ii) by the Secretary.
(6) Charges to students and parents for use of forms
prohibited.--The need and eligibility of a student for
financial assistance under parts A through E (other
than under subpart 4 of part A) may be determined only
by using a form developed by the Secretary under this
subsection. Such forms shall be produced, distributed,
and processed by the Secretary, and no parent or
student shall be charged a fee by the Secretary, a
contractor, a third-party servicer or private software
provider, or any other public or private entity for the
collection, processing, or delivery of financial aid
through the use of such forms. No data collected on a
form for which a fee is charged shall be used to
complete the form prescribed under this section, except
that a Federal or State income tax form prepared by a
paid income tax preparer or preparer service for the
primary purpose of filing a Federal or State income tax
return may be used to complete the form prescribed
under this section.
(7) Restrictions on use of pin.--No person,
commercial entity, or other entity may request, obtain,
or utilize an applicant's personal identification
number assigned under paragraph (3)(G) for purposes of
submitting a form developed under this subsection on an
applicant's behalf.
(8) Application processing cycle.--The Secretary
shall enable students to submit forms developed under
this subsection and initiate the processing of such
forms under this subsection, as early as practicable
prior to January 1 of the student's planned year of
enrollment.
(9) Early estimates.--The Secretary shall continue
to--
(A) permit applicants to enter data in such
forms as described in this subsection in the
years prior to enrollment in order to obtain a
non-binding estimate of the applicant's family
contribution (as defined in section 473);
(B) permit applicants to update information
submitted on forms described in this
subsection, without needing to re-enter
previously submitted information;
(C) develop a means to inform applicants, in
the years prior to enrollment, of student aid
options for individuals in similar financial
situations, including through the tool
described in section 485E(c);
(D) develop a means to provide a clear and
conspicuous notice that the applicant's
expected family contribution is subject to
change and may not reflect the final expected
family contribution used to determine Federal
student financial aid award amounts under this
title; and
(E) consult with representatives of States,
institutions of higher education, and other
individuals with experience or expertise in
student financial assistance application
processes in making updates to forms used to
provide early estimates under this paragraph.
(10) Distribution of data.--Institutions of higher
education, guaranty agencies, and States shall receive,
without charge, the data collected by the Secretary
using a form developed under this subsection for the
purposes of processing loan applications and
determining need and eligibility for institutional and
State financial aid awards. Entities designated by
institutions of higher education, guaranty agencies, or
States to receive such data shall be subject to all the
requirements of this section, unless such requirements
are waived by the Secretary.
(11) Third party servicers and private software
providers.--To the extent practicable and in a timely
manner, the Secretary shall provide, to private
organizations and consortia that develop software used
by institutions of higher education for the
administration of funds under this title, all the
necessary specifications that the organizations and
consortia must meet for the software the organizations
and consortia develop, produce, and distribute
(including any diskette, modem, or network
communications) to be so used. The specifications shall
contain record layouts for required data. The Secretary
shall develop in advance of each processing cycle an
annual schedule for providing such specifications. The
Secretary, to the extent practicable, shall use
multiple means of providing such specifications,
including conferences and other meetings, outreach, and
technical support mechanisms (such as training and
printed reference materials). The Secretary shall, from
time to time, solicit from such organizations and
consortia means of improving the support provided by
the Secretary.
(12) Parent's social security number and birth
date.--The Secretary is authorized to include space on
the forms developed under this subsection for the
social security number and birth date of parents of
dependent students seeking financial assistance under
this title.
(b) Information to Committees of Congress.--Copies of all
rules, regulations, guidelines, instructions, and application
forms published or promulgated pursuant to this title shall be
provided to the authorizing committees at least 45 days prior
to their effective date.
(c) Toll-Free Information.--The Secretary shall contract for,
or establish, and publicize a toll-free telephone service to
provide timely and accurate information to the general public.
The information provided shall include specific instructions on
completing the application form for assistance under this
title. Such service shall also include a service accessible by
telecommunications devices for the deaf (TDD's) and shall, in
addition to the services provided for in the previous sentence,
refer such students to the national clearinghouse on
postsecondary education or other appropriate provider of
technical assistance and information on postsecondary
educational services for individuals with disabilities,
including the National Technical Assistance Center under
section 777. The Secretary shall continue to implement, to the
extent practicable, a toll-free telephone based system to
permit applicants who meet the requirements of subsection (b)
or (c) of section 479 to submit an application over such
system.
(d) Assistance in Preparation of Financial Aid Application.--
(1) Preparation authorized.--Notwithstanding any
provision of this Act, an applicant may use a preparer
for consultative or preparation services for the
completion of a form developed under subsection (a) if
the preparer satisfies the requirements of this
subsection.
(2) Preparer identification required.--If an
applicant uses a preparer for consultative or
preparation services for the completion of a form
developed under subsection (a), and for which a fee is
charged, the preparer shall--
(A) include, at the time the form is
submitted to the Department, the name, address
or employer's address, social security number
or employer identification number, and
organizational affiliation of the preparer on
the applicant's form; and
(B) be subject to the same penalties as an
applicant for purposely giving false or
misleading information in the application.
(3) Additional requirements.--A preparer that
provides consultative or preparation services pursuant
to this subsection shall--
(A) clearly inform each individual upon
initial contact, including contact through the
Internet or by telephone, that the FAFSA and EZ
FAFSA are free forms that may be completed
without professional assistance via paper or
electronic version of the forms that are
provided by the Secretary;
(B) include in any advertising clear and
conspicuous information that the FAFSA and EZ
FAFSA are free forms that may be completed
without professional assistance via paper or
electronic version of the forms that are
provided by the Secretary;
(C) if advertising or providing any
information on a website, or if providing
services through a website, include on the
website a link to the website that provides the
electronic version of the forms developed under
subsection (a); and
(D) not produce, use, or disseminate any
other form for the purpose of applying for
Federal student financial aid other than the
form developed by the Secretary under
subsection (a).
(4) Special rule.--Nothing in this Act shall be
construed to limit preparers of the forms required
under this title that meet the requirements of this
subsection from collecting source information from a
student or parent, including Internal Revenue Service
tax forms, in providing consultative and preparation
services in completing the forms.
(e) Early Application and Estimated Award Demonstration
Program.--
(1) Purpose and objectives.--The purpose of the
demonstration program under this subsection is to
measure the benefits, in terms of student aspirations
and plans to attend an institution of higher education,
and any adverse effects, in terms of program costs,
integrity, distribution, and delivery of aid under this
title, of implementing an early application system for
all dependent students that allows dependent students
to apply for financial aid using information from two
years prior to the year of enrollment. Additional
objectives associated with implementation of the
demonstration program are the following:
(A) To measure the feasibility of enabling
dependent students to apply for Federal, State,
and institutional financial aid in their junior
year of secondary school, using information
from two years prior to the year of enrollment,
by completing any of the forms under this
subsection.
(B) To identify whether receiving final
financial aid award estimates not later than
the fall of the senior year of secondary school
provides students with additional time to
compete for the limited resources available for
State and institutional financial aid and
positively impacts the college aspirations and
plans of these students.
(C) To measure the impact of using income
information from the years prior to enrollment
on--
(i) eligibility for financial aid
under this title and for other State
and institutional aid; and
(ii) the cost of financial aid
programs under this title.
(D) To effectively evaluate the benefits and
adverse effects of the demonstration program on
program costs, integrity, distribution, and
delivery of financial aid.
(2) Program authorized.--Not later than two years
after the date of enactment of the Higher Education
Opportunity Act, the Secretary shall implement an early
application demonstration program enabling dependent
students who wish to participate in the program--
(A) to complete an application under this
subsection during the academic year that is two
years prior to the year such students plan to
enroll in an institution of higher education;
and
(B) based on the application described in
subparagraph (A), to obtain, not later than one
year prior to the year of the students' planned
enrollment, information on eligibility for
Federal Pell Grants, Federal student loans
under this title, and State and institutional
financial aid for the student's first year of
enrollment in the institution of higher
education.
(3) Early application and estimated award.--For all
dependent students selected for participation in the
demonstration program who submit a completed FAFSA, or,
as appropriate, an EZ FAFSA, two years prior to the
year such students plan to enroll in an institution of
higher education, the Secretary shall, not later than
one year prior to the year of such planned enrollment--
(A) provide each student who completes an
early application with an estimated
determination of such student's--
(i) expected family contribution for
the first year of the student's
enrollment in an institution of higher
education; and
(ii) Federal Pell Grant award for the
first such year, based on the Federal
Pell Grant amount, determined under
section 401(b)(2)(A), for which a
student is eligible at the time of
application; and
(B) remind the students of the need to update
the students' information during the calendar
year of enrollment using the expedited
reapplication process provided for in
subsection (a)(4)(A).
(4) Participants.--The Secretary shall include as
participants in the demonstration program--
(A) States selected through the application
process described in paragraph (5);
(B) institutions of higher education within
the selected States that are interested in
participating in the demonstration program, and
that can make estimates or commitments of
institutional student financial aid, as
appropriate, to students the year before the
students' planned enrollment date; and
(C) secondary schools within the selected
States that are interested in participating in
the demonstration program, and that can commit
resources to--
(i) advertising the availability of
the program;
(ii) identifying students who might
be interested in participating in the
program;
(iii) encouraging such students to
apply; and
(iv) participating in the evaluation
of the program.
(5) Applications.--Each State that is interested in
participating in the demonstration program shall submit
an application to the Secretary at such time, in such
form, and containing such information as the Secretary
shall require. The application shall include--
(A) information on the amount of the State's
need-based student financial assistance
available, and the eligibility criteria for
receiving such assistance;
(B) a commitment to make, not later than the
year before the dependent students
participating in the demonstration program plan
to enroll in an institution of higher
education, an estimate of the award of State
financial aid to such dependent students;
(C) a plan for recruiting institutions of
higher education and secondary schools with
different demographic characteristics to
participate in the program;
(D) a plan for selecting institutions of
higher education and secondary schools to
participate in the program that--
(i) demonstrate a commitment to
encouraging students to submit a FAFSA,
or, as appropriate, an EZ FAFSA, two
years before the students' planned date
of enrollment in an institution of
higher education;
(ii) serve different populations of
students;
(iii) in the case of institutions of
higher education--
(I) to the extent possible,
are of varying types and
sectors; and
(II) commit to making, not
later than the year prior to
the year that dependent
students participating in the
demonstration program plan to
enroll in the institution--
(aa) estimated
institutional awards to
participating dependent
students; and
(bb) estimated grants
or other financial aid
available under this
title (including
supplemental grants
under subpart 3 of part
A), for all
participating dependent
students, along with
information on State
awards, as provided to
the institution by the
State;
(E) a commitment to participate in the
evaluation conducted by the Secretary; and
(F) such other information as the Secretary
may require.
(6) Special provisions.--
(A) Discretion of student financial aid
administrators.--A financial aid administrator
at an institution of higher education
participating in a demonstration program under
this subsection may use the discretion provided
under section 479A as necessary for students
participating in the demonstration program.
(B) Waivers.--The Secretary is authorized to
waive, for an institution of higher education
participating in the demonstration program, any
requirements under this title, or regulations
prescribed under this title, that will make the
demonstration program unworkable, except that
the Secretary shall not waive any provisions
with respect to the maximum award amounts for
grants and loans under this title.
(7) Outreach.--The Secretary shall make appropriate
efforts to notify States of the demonstration program
under this subsection. Upon determination of
participating States, the Secretary shall continue to
make efforts to notify institutions of higher education
and dependent students within participating States of
the opportunity to participate in the demonstration
program and of the participation requirements.
(8) Evaluation.--The Secretary shall conduct a
rigorous evaluation of the demonstration program to
measure the program's benefits and adverse effects, as
the benefits and effects relate to the purpose and
objectives of the program described in paragraph (1).
In conducting the evaluation, the Secretary shall--
(A) determine whether receiving financial aid
estimates one year prior to the year in which
the student plans to enroll in an institution
of higher education, has a positive impact on
the higher education aspirations and plans of
such student;
(B) measure the extent to which using a
student's income information from the year that
is two years prior to the student's planned
enrollment date had an impact on the ability of
States and institutions of higher education to
make financial aid awards and commitments;
(C) determine what operational changes are
required to implement the program on a larger
scale;
(D) identify any changes to Federal law that
are necessary to implement the program on a
permanent basis;
(E) identify the benefits and adverse effects
of providing early estimates on program costs,
program operations, program integrity, award
amounts, distribution, and delivery of aid; and
(F) examine the extent to which estimated
awards differ from actual awards made to
students participating in the program.
(9) Consultation.--The Secretary shall consult, as
appropriate, with the Advisory Committee on Student
Financial Assistance established under section 491 on
the design, implementation, and evaluation of the
demonstration program.
[(f) Reduction of Income and Asset Information to Determine
Eligibility for Student Financial Aid.--
[(1) Continuation of current fafsa simplification
efforts.--The Secretary shall continue to examine--
[(A) how the Internal Revenue Service can
provide to the Secretary income and other data
needed to compute an expected family
contribution for taxpayers and dependents of
taxpayers, and when in the application cycle
the data can be made available;
[(B) whether data provided by the Internal
Revenue Service can be used to--
[(i) prepopulate the electronic
version of the FAFSA with student and
parent taxpayer data; or
[(ii) generate an expected family
contribution without additional action
on the part of the student and
taxpayer; and
[(C) whether the data elements collected on
the FAFSA that are needed to determine
eligibility for student aid, or to administer
the Federal student financial aid programs
under this title, but are not needed to compute
an expected family contribution, such as
information regarding the student's citizenship
or permanent residency status, registration for
selective service, or driver's license number,
can be reduced without adverse effects.
[(2) Report on fafsa simplification efforts to
date.--Not later than 90 days after the date of
enactment of the Higher Education Opportunity Act, the
Secretary shall provide a written report to the
authorizing committees on the work the Department has
done with the Secretary of the Treasury regarding--
[(A) how the expected family contribution of
a student can be calculated using substantially
less income and asset information than was used
on March 31, 2008;
[(B) the extent to which the reduced income
and asset information will result in a
redistribution of Federal grants and subsidized
loans under this title, State aid, or
institutional aid, or in a change in the
composition of the group of recipients of such
aid, and the amount of such redistribution;
[(C) how the alternative approaches for
calculating the expected family contribution
will--
[(i) rely mainly, in the case of
students and parents who file income
tax returns, on information available
on the 1040, 1040EZ, and 1040A; and
[(ii) include formulas for adjusting
income or asset information to produce
similar results to the existing
approach with less data;
[(D) how the Internal Revenue Service can
provide to the Secretary of Education income
and other data needed to compute an expected
family contribution for taxpayers and
dependents of taxpayers, and when in the
application cycle the data can be made
available;
[(E) whether data provided by the Internal
Revenue Service can be used to--
[(i) prepopulate the electronic
version of the FAFSA with student and
parent taxpayer data; or
[(ii) generate an expected family
contribution without additional action
on the part of the student and
taxpayer;
[(F) the extent to which the use of income
data from two years prior to a student's
planned enrollment date will change the
expected family contribution computed in
accordance with part F, and potential
adjustments to the need analysis formula that
will minimize the change; and
[(G) the extent to which the data elements
collected on the FAFSA on March 31, 2008, that
are needed to determine eligibility for student
aid or to administer the Federal student
financial aid programs, but are not needed to
compute an expected family contribution, such
as information regarding the student's
citizenship or permanent residency status,
registration for selective service, or driver's
license number, can be reduced without adverse
effects.
[(3) Study.--
[(A) Formation of study group.--Not later
than 90 days after the date of enactment of the
Higher Education Opportunity Act, the
Comptroller General shall convene a study group
the membership of which shall include the
Secretary of Education, the Secretary of the
Treasury, the Director of the Office of
Management and Budget, the Director of the
Congressional Budget Office, representatives of
institutions of higher education with expertise
in Federal and State financial aid assistance,
State chief executive officers of higher
education with a demonstrated commitment to
simplifying the FAFSA, and such other
individuals as the Comptroller General and the
Secretary of Education may designate.
[(B) Study required.--The Comptroller
General, in consultation with the study group
convened under subparagraph (A) shall--
[(i) review and build on the work of
the Secretary of Education and the
Secretary of the Treasury, and
individuals with expertise in analysis
of financial need, to assess
alternative approaches for calculating
the expected family contribution under
the statutory need analysis formula in
effect on the day before the date of
enactment of the Higher Education
Opportunity Act and under a new
calculation that will use substantially
less income and asset information than
was used for the 2008-2009 FAFSA;
[(ii) conduct an additional analysis
if necessary; and
[(iii) make recommendations to the
authorizing committees.
[(C) Objectives of study.--The objectives of
the study required under subparagraph (B) are--
[(i) to determine methods to shorten
the FAFSA and make the FAFSA easier and
less time-consuming to complete,
thereby increasing higher education
access for low-income students;
[(ii) to identify changes to the
statutory need analysis formula that
will be necessary to reduce the amount
of financial information students and
families need to provide to receive a
determination of eligibility for
student financial aid without causing
significant redistribution of Federal
grants and subsidized loans under this
title; and
[(iii) to review State and
institutional needs and uses for data
collected on the FAFSA, and to
determine the best means of addressing
such needs in the case of modification
of the FAFSA as described in clause
(i), or modification of the need
analysis formula as described in clause
(ii).
[(D) Required subjects of study.--The study
required under subparagraph (B) shall examine--
[(i) with respect to simplification
of the financial aid application
process using the statutory
requirements for need analysis--
[(I) additional steps that
can be taken to simplify the
financial aid application
process for students who (or,
in the case of dependent
students, whose parents) are
not required to file a Federal
income tax return for the prior
taxable year;
[(II) information on State
use of information provided on
the FAFSA, including--
[(aa) whether a State
uses, as of the time of
the study, or can use,
a student's expected
family contribution
based on data from two
years prior to the
student's planned
enrollment date;
[(bb) the extent to
which States and
institutions will
accept the data
provided by the
Internal Revenue
Service to prepopulate
the electronic version
of the FAFSA to
determine the
distribution of State
and institutional
student financial aid
funds;
[(cc) what data are
used by States, as of
the time of the study,
to determine
eligibility for State
student financial aid,
and whether the data
are used for merit- or
need-based aid;
[(dd) whether State
data are required by
State law, State
regulations, or policy
directives; and
[(ee) the extent to
which any State-
specific information
requirements can be met
by completion of a
State application
linked to the
electronic version of
the FAFSA; and
[(III) information on
institutional needs, including
the extent to which
institutions of higher
education are already using
supplemental forms to collect
additional data from students
and their families to determine
eligibility for institutional
funds; and
[(ii) ways to reduce the amount of
financial information students and
families need to provide to receive a
determination of eligibility for
student financial aid, taking into
account--
[(I) the amount of
redistribution of Federal
grants and subsidized loans
under this title caused by such
a reduction, and the benefits
to be gained by having an
application process that will
be easier for students and
their families;
[(II) students and families
who do not file income tax
returns;
[(III) the extent to which
the full array of income and
asset information collected on
the FAFSA, as of the time of
the study, plays an important
role in the awarding of need-
based State financial aid, and
whether the State can use an
expected family contribution
generated by the FAFSA, instead
of income and asset information
or a calculation with reduced
data elements, to support
determinations of eligibility
for such State aid programs
and, if not, what additional
information will be needed or
what changes to the FAFSA will
be required; and
[(IV) information on
institutional needs, including
the extent to which
institutions of higher
education are already using
supplemental forms to collect
additional data from students
and their families to determine
eligibility for institutional
funds; and
[(V) changes to this Act or
other laws that will be
required to implement a
modified need analysis system.
[(4) Consultation.--The Secretary shall consult with
the Advisory Committee on Student Financial Assistance
established under section 491 as appropriate in
carrying out this subsection.
[(5) Reports.--
[(A) Reports on study.--The Secretary shall
prepare and submit to the authorizing
committees--
[(i) not later than one year after
the date of enactment of the Higher
Education Opportunity Act, an interim
report on the progress of the study
required under paragraph (3) that
includes any preliminary
recommendations by the study group
established under such paragraph; and
[(ii) not later than two years after
the date of enactment of the Higher
Education Opportunity Act, a final
report on the results of the study
required under paragraph (3) that
includes recommendations by the study
group established under such paragraph.
[(B) Reports on fafsa simplification
efforts.--The Secretary shall report to the
authorizing committees, from time to time, on
the progress of the simplification efforts
under this subsection.]
(f) Use of Internal Revenue Service Data Retrieval Tool to
Populate FAFSA.--
(1) Simplification efforts.--The Secretary shall--
(A) make every effort to allow applicants to
utilize the current data retrieval tool to
transfer, through a rigorous authentication
process, data available from the Internal
Revenue Service to reduce the amount of
original data entry by applicants and
strengthen the reliability of data used to
calculate expected family contributions,
including through the use of technology to--
(i) allow an applicant to
automatically populate the electronic
version of the forms under this
paragraph with data available from the
Internal Revenue Service; and
(ii) direct an applicant to
appropriate questions on such forms
based on the applicant's answers to
previous questions; and
(B) allow single taxpayers, married taxpayers
filing jointly, and married taxpayers filing
separately to utilize the current data
retrieval tool to its full capacity.
(2) Use of tax return in application process.--The
Secretary shall continue to examine whether data
provided by the Internal Revenue Service can be used to
generate an expected family contribution without
additional action on the part of the student and
taxpayer.
(3) Reports on fafsa simplification efforts.--Not
less than once every year, the Secretary shall report
to the authorizing committees on--
(A) the progress of the simplification
efforts under this subsection; and
(B) the security of the data retrieval tool.
(g) Addressing the Digital Divide.--The Secretary shall
utilize savings accrued by moving more applicants to the
electronic version of the forms described in subsection (a)(3)
to improve access to the electronic version of the forms
described in such subsection for applicants meeting the
requirements of subsection (b) or (c) of section 479.
(h) Adjustments.--The Secretary shall disclose, on the form
notifying a student of the student's expected family
contribution, that the student may, on a case-by-case basis,
qualify for an adjustment under section 479A to the cost of
attendance or the values of the data items required to
calculate the expected contribution for the student or parent.
Such disclosure shall specify--
(1) the special circumstances under which a student
or family member may qualify for such adjustment; and
(2) additional information regarding the steps a
student or family member may take in order to seek an
adjustment under section 479A.
SEC. 484. STUDENT ELIGIBILITY.
(a) In General.--In order to receive any grant, loan, or work
assistance under this title, a student must--
(1) be enrolled or accepted for enrollment in [a
degree, certificate, or other program (including a
program of study abroad approved for credit by the
eligible institution at which such student is enrolled)
leading to a] an eligible program (including a program
of study abroad approved for credit by the eligible
institution at which such student is enrolled) leading
to a degree, certificate, or other recognized
educational credential at an institution of higher
education that is an eligible institution in accordance
with the provisions of section 487, except as provided
in subsections (b)(3) and (b)(4), and not be enrolled
in an elementary or secondary school;
(2) if the student is presently enrolled at an
institution, be maintaining satisfactory progress in
the course of study the student is pursuing in
accordance with the provisions of subsection (c);
(3) not owe a refund on grants previously received at
any institution under this title, or be in default on
any loan from a student loan fund at any institution
provided for in part E, as in effect on the day before
the date of enactment of the PROSPER Act and pursuant
to section 461(a) of such Act, or a loan made, insured,
or guaranteed by the Secretary under this title for
attendance at any institution;
(4) file with the Secretary, as part of the original
financial aid application process, a certification,
which need not be notarized, but which shall include--
(A) a statement of educational purpose
stating that the money attributable to such
grant, loan, or loan guarantee will be used
solely for expenses related to attendance or
continued attendance at such institution; and
(B) such student's social security number;
(5) be a citizen or national of the United States, a
permanent resident of the United States, or able to
provide evidence from the Immigration and
Naturalization Service that he or she is in the United
States for other than a temporary purpose with the
intention of becoming a citizen or permanent resident;
and
(6) if the student has been convicted of, or has pled
nolo contendere or guilty to, a crime involving fraud
in obtaining funds under this title, have completed the
repayment of such funds to the Secretary, or to the
holder in the case of a loan under this title obtained
by fraud.
(b) Eligibility for Student Loans.--(1) In order to be
eligible to receive any loan under this title (other than a
loan under section 428B or 428C, or under section 428H pursuant
to an exercise of discretion under section 479A) for any period
of enrollment, a student who is not a graduate or professional
student (as defined in regulations of the Secretary), and who
is enrolled in a program at an institution which has a
participation agreement with the Secretary to make awards under
subpart 1 of part A of this title, shall--
(A)(i) have received a determination of eligibility
or ineligibility for a Pell Grant under such subpart 1
for such period of enrollment; and (ii) if determined
to be eligible, have filed an application for a Pell
Grant for such enrollment period; or
(B) have (A) filed an application with the Pell Grant
processor for such institution for such enrollment
period, and (B) received from the financial aid
administrator of the institution a preliminary
determination of the student's eligibility or
ineligibility for a grant under such subpart 1.
(2) In order to be eligible to receive any loan under section
428A for any period of enrollment, a student shall--
(A) have received a determination of need for a loan
under section 428(a)(2)(B) of this title;
(B) if determined to have need for a loan under
section 428, have applied for such a loan; and
(C) has applied for a loan under section 428H, if
such student is eligible to apply for such a loan.
(3) A student who--
(A) is carrying at least one-half the normal full-
time work load for the course of study that the student
is pursuing, as determined by an eligible institution,
and
(B) is enrolled in a course of study necessary for
enrollment in a program leading to a degree or
certificate,
shall be, notwithstanding paragraph (1) of subsection (a),
eligible to apply for loans under [part B or D] part B, D, or E
of this title. The eligibility described in this paragraph
shall be restricted to one 12-month period.
(4) A student who--
(A) is carrying at least one-half the normal full-
time work load for the course of study the student is
pursuing, as determined by the institution, and
(B) is enrolled or accepted for enrollment in a
program at an eligible institution necessary for a
professional credential or certification from a State
that is required for employment as a teacher in an
elementary or secondary school in that State,
shall be, notwithstanding paragraph (1) of subsection (a),
eligible to apply for loans under part B, D, or E or work-study
assistance under part C of this title.
(5) Notwithstanding any other provision of this subsection,
no incarcerated student is eligible to receive a loan under
this title.
(6) For purposes of competency-based education, in order to
be eligible to receive any loan under this title for an award
year, a student may be enrolled in coursework attributable only
to 2 academic years within the award year.
(c) Satisfactory Progress.--(1) For the purpose of subsection
(a)(2), a student is maintaining satisfactory progress if--
(A) the institution at which the student is in
attendance, reviews the progress of the student at
least as frequently as the end of each academic year,
or its equivalent, as determined by the institution[,
and];
(B) [the student has a cumulative] the student has--
(i) a cumulative C average, or its
equivalent or academic standing consistent with
the requirements for graduation, as determined
by the institution, at the end of [the second]
each such academic year[.]; or
(ii) for the purposes of competency-based
programs, a non-grade equivalent demonstration
of academic standing consistent with the
requirements for graduation, as determined by
the institution, at the end of each such
academic year; and
(C) the student maintains a pace in his or her
educational program that--
(i) ensures that the student completes the
program within the maximum timeframe; and
(ii) is measured by a method determined by
the institution which may be based on credit
hours, clock hours, or competencies completed.
(2) Whenever a student fails to meet the eligibility
requirements of subsection (a)(2) as a result of the
application of this subsection and subsequent to that failure
the student has academic standing consistent with the
requirements for graduation, as determined by the institution,
for any [grading period] evaluation period, the student may,
subject to this subsection, again be eligible under subsection
(a)(2) for a grant, loan, or work assistance under this title.
(3) Any institution of higher education at which the student
is in attendance may waive the provisions of paragraph (1) or
paragraph (2) of this subsection for undue hardship based on--
(A) the death of a relative of the student,
(B) the personal injury or illness of the student, or
(C) special circumstances as determined by the
institution.
(4) For purposes of this subsection, the term ``maximum
timeframe'' means--
(A) with respect to an undergraduate program measured
in credit hours, a period that is no longer than 150
percent of the published length of the educational
program, as measured in credit hours;
(B) with respect to an undergraduate program measured
in competencies, a period that is no longer than 150
percent of the published length of the educational
program, as measured in competencies;
(C) with respect to an undergraduate program measured
in clock hours, a period that is no longer than 150
percent of the published length of the educational
program, as measured by the cumulative number of clock
hours the student is required to complete and expressed
in calendar time; and
(D) with respect to a graduate program, a period
defined by the institution that is based on the length
of the educational program.
[(d) Students Who Are Not High School Graduates.--
[(1) Student eligibility.--In order for a student who
does not have a certificate of graduation from a school
providing secondary education, or the recognized
equivalent of such certificate, to be eligible for any
assistance under subparts 1, 3, and 4 of part A and
parts B, C, D, and E of this title, the student shall
meet the requirements of one of the following
subparagraphs:
[(A) The student is enrolled in an eligible
career pathway program and meets one of the
following standards:
[(i) The student shall take an
independently administered examination
and shall achieve a score, specified by
the Secretary, demonstrating that such
student can benefit from the education
or training being offered. Such
examination shall be approved by the
Secretary on the basis of compliance
with such standards for development,
administration, and scoring as the
Secretary may prescribe in regulations.
[(ii) The student shall be determined
as having the ability to benefit from
the education or training in accordance
with such process as the State shall
prescribe. Any such process described
or approved by a State for the purposes
of this section shall be effective 6
months after the date of submission to
the Secretary unless the Secretary
disapproves such process. In
determining whether to approve or
disapprove such process, the Secretary
shall take into account the
effectiveness of such process in
enabling students without secondary
school diplomas or the equivalent
thereof to benefit from the instruction
offered by institutions utilizing such
process, and shall also take into
account the cultural diversity,
economic circumstances, and educational
preparation of the populations served
by the institutions.
[(iii) The student shall be
determined by the institution of higher
education as having the ability to
benefit from the education or training
offered by the institution of higher
education upon satisfactory completion
of 6 credit hours or the equivalent
coursework that are applicable toward a
degree or certificate offered by the
institution of higher education.
[(B) The student has completed a secondary
school education in a home school setting that
is treated as a home school or private school
under State law.
[(2) Eligible career pathway program.--In this
subsection, the term ``eligible career pathway
program'' means a program that combines rigorous and
high-quality education, training, and other services
that--
[(A) aligns with the skill needs of
industries in the economy of the State or
regional economy involved;
[(B) prepares an individual to be successful
in any of a full range of secondary or
postsecondary education options, including
apprenticeships registered under the Act of
August 16, 1937 (commonly known as the
``National Apprenticeship Act''; 50 Stat. 664,
chapter 663; 29 U.S.C. 50 et seq.) (referred to
individually in this Act as an
``apprenticeship'', except in section 171);
[(C) includes counseling to support an
individual in achieving the individual's
education and career goals;
[(D) includes, as appropriate, education
offered concurrently with and in the same
context as workforce preparation activities and
training for a specific occupation or
occupational cluster;
[(E) organizes education, training, and other
services to meet the particular needs of an
individual in a manner that accelerates the
educational and career advancement of the
individual to the extent practicable;
[(F) enables an individual to attain a
secondary school diploma or its recognized
equivalent, and at least 1 recognized
postsecondary credential; and
[(G) helps an individual enter or advance
within a specific occupation or occupational
cluster.]
(d) Additional Student Eligibility.--
(1) Ability to benefit students.--In order for a
student who does not have a certificate of graduation
from a school providing secondary education, or the
recognized equivalent of such certificate, to be
eligible for any assistance under subpart 1 of part A
and parts C, D, and E of this title, the student shall
be determined by the institution of higher education as
having the ability to benefit from the education
offered by the institution of higher education upon
satisfactory completion of 6 credit hours or the
equivalent coursework that are applicable toward a
degree or certificate offered by the institution of
higher education.
(2) Homeschool students.--A student who has completed
a secondary school education in a home school setting
that is treated as a home school or private school
under State law shall be eligible for assistance under
subpart 1 of part A and parts C, D, and E of this
title.
(3) Secondary education provided by nonprofit
corporations.--A student who has completed a secondary
education provided by a school operating as a nonprofit
corporation that offers a program of study determined
acceptable for admission at an institution of higher
education shall be eligible for assistance under
subpart 1 of part A and parts C, D, and E of this
title.
(e) Certification for GSL Eligibility.--Each eligible
institution may certify student eligibility for a loan by an
eligible lender under part B of this title prior to completing
the review for accuracy of the information submitted by the
applicant required by regulations issued under this title, if--
(1) checks for the loans are mailed to the eligible
institution prior to disbursements;
(2) the disbursement is not made until the review is
complete; and
(3) the eligible institution has no evidence or
documentation on which the institution may base a
determination that the information submitted by the
applicant is incorrect.
(f) Loss of Eligibility for Violation of Loan Limits.--(1) No
student shall be eligible to receive any grant, loan, or work
assistance under this title if the eligible institution
determines that the student fraudulently borrowed in violation
of the annual loan limits under part B, part D, [or part E],
part E (as in effect on the day before the date of enactment of
the PROSPER Act and pursuant to section 461(a) of such Act), or
part E (as in effect on or after the date of enactment of the
PROSPER Act) of this title in the same academic year, or if the
student fraudulently borrowed in excess of the aggregate
maximum loan limits under such part B, part D, [or part E],
part E (as in effect on the day before the date of enactment of
the PROSPER Act and pursuant to section 461(a) of such Act), or
part E (as in effect on or after the date of enactment of the
PROSPER Act).
(2) If the institution determines that the student
inadvertently borrowed amounts in excess of such annual or
aggregate maximum loan limits, such institution shall allow the
student to repay any amount borrowed in excess of such limits
prior to certifying the student's eligibility for further
assistance under this title.
(g) Verification of Immigration Status.--
(1) In general.--The Secretary shall implement a
system under which the statements and supporting
documentation, if required, of an individual declaring
that such individual is in compliance with the
requirements of subsection (a)(5) shall be verified
prior to the individual's receipt of a grant, loan, or
work assistance under this title.
(2) Special rule.--The documents collected and
maintained by an eligible institution in the admission
of a student to the institution may be used by the
student in lieu of the documents used to establish both
employment authorization and identity under section
274A(b)(1)(B) of the Immigration and Nationality Act (8
U.S.C. 1324a) to verify eligibility to participate in
work-study programs under part C of this title.
(3) Verification mechanisms.--The Secretary is
authorized to verify such statements and supporting
documentation through a data match, using an automated
or other system, with other Federal agencies that may
be in possession of information relevant to such
statements and supporting documentation.
(4) Review.--In the case of such an individual who is
not a citizen or national of the United States, if the
statement described in paragraph (1) is submitted but
the documentation required under paragraph (2) is not
presented or if the documentation required under
paragraph (2)(A) is presented but such documentation is
not verified under paragraph (3)--
(A) the institution--
(i) shall provide a reasonable
opportunity to submit to the
institution evidence indicating a
satisfactory immigration status, and
(ii) may not delay, deny, reduce, or
terminate the individual's eligibility
for the grant, loan, or work assistance
on the basis of the individual's
immigration status until such a
reasonable opportunity has been
provided; and
(B) if there are submitted documents which
the institution determines constitute
reasonable evidence indicating such status--
(i) the institution shall transmit to
the Immigration and Naturalization
Service either photostatic or other
similar copies of such documents, or
information from such documents, as
specified by the Immigration and
Naturalization Service, for official
verification,
(ii) pending such verification, the
institution may not delay, deny,
reduce, or terminate the individual's
eligibility for the grant, loan, or
work assistance on the basis of the
individual's immigration status, and
(iii) the institution shall not be
liable for the consequences of any
action, delay, or failure of the
Service to conduct such verification.
(h) Limitations of Enforcement Actions Against
Institutions.--The Secretary shall not take any compliance,
disallowance, penalty, or other regulatory action against an
institution of higher education with respect to any error in
the institution's determination to make a student eligible for
a grant, loan, or work assistance based on citizenship or
immigration status--
(1) if the institution has provided such eligibility
based on a verification of satisfactory immigration
status by the Immigration and Naturalization Service,
(2) because the institution, under subsection
(g)(4)(A)(i), was required to provide a reasonable
opportunity to submit documentation, or
(3) because the institution, under subsection
(g)(4)(B)(i), was required to wait for the response of
the Immigration and Naturalization Service to the
institution's request for official verification of the
immigration status of the student.
(i) Validity of Loan Guarantees for Loan Payments Made Before
Immigration Status Verification Completed.--Notwithstanding
subsection (h), if--
(1) a guaranty is made under this title for a loan
made with respect to an individual,
(2) at the time the guaranty is entered into, the
provisions of subsection (h) had been complied with,
(3) amounts are paid under the loan subject to such
guaranty, and
(4) there is a subsequent determination that, because
of an unsatisfactory immigration status, the individual
is not eligible for the loan,
the official of the institution making the determination shall
notify and instruct the entity making the loan to cease further
payments under the loan, but such guaranty shall not be voided
or otherwise nullified with respect to such payments made
before the date the entity receives the notice.
(k) Special Rule for Correspondence Courses.--A student shall
not be eligible to receive grant, loan, or work assistance
under this title for a correspondence course unless such course
is part of a program leading to an associate, bachelor or
graduate degree.
[(l) Courses Offered Through Distance Education.--
[(1) Relation to correspondence courses.--
[(A) In general.--A student enrolled in a
course of instruction at an institution of
higher education that is offered principally
through distance education and leads to a
recognized certificate, or recognized
associate, recognized baccalaureate, or
recognized graduate degree, conferred by such
institution, shall not be considered to be
enrolled in correspondence courses.
[(B) Exception.--An institution of higher
education referred to in subparagraph (A) shall
not include an institution or school described
in section 3(3)(C) of the Carl D. Perkins
Career and Technical Education Act of 2006.
[(2) Reductions of financial aid.--A student's
eligibility to receive grants, loans, or work
assistance under this title shall be reduced if a
financial aid officer determines under the
discretionary authority provided in section 479A that
distance education results in a substantially reduced
cost of attendance to such student.
[(3) Special rule.--For award years beginning prior
to July 1, 2008, the Secretary shall not take any
compliance, disallowance, penalty, or other action
based on a violation of this subsection against a
student or an eligible institution when such action
arises out of such institution's prior award of student
assistance under this title if the institution
demonstrates to the satisfaction of the Secretary that
its course of instruction would have been in
conformance with the requirements of this subsection.]
[(m)] (l) Students With a First Baccalaureate or Professional
Degree.--A student shall not be ineligible for assistance under
parts B, C, D, and E of this title because such student has
previously received a baccalaureate or professional degree.
[(n) Data Base Matching.--] [To enforce] (m) Selective
Service Registration._
(1) Data base matching._To enforce the Selective
Service registration provisions of section 12(f) of the
Military Selective Service Act (50 U.S.C. App. 462(f)),
the Secretary shall conduct data base matches with the
Selective Service, using common demographic data
elements. Appropriate confirmation, through an
application output document or through other means, of
any person's registration shall fulfill the requirement
to file a separate statement of compliance. In the
absence of a confirmation from such data matches, an
institution may also use data or documents that support
either the student's registration, or the absence of a
registration requirement for the student, to fulfill
the requirement to file a separate statement of
compliance. The mechanism for reporting the resolution
of nonconfirmed matches shall be prescribed by the
Secretary in regulations.
(2) Effect of failure to register for selective
service.--A person who is 26 years of age or older
shall not be ineligible for assistance or a benefit
provided under this title by reason of failure to
present himself for, and submit to, registration under
section 3 of the Military Selective Service Act (50
U.S.C. 3802).
[(o)] (n) Study Abroad.--Nothing in this Act shall be
construed to limit or otherwise prohibit access to study abroad
programs approved by the home institution at which a student is
enrolled. An otherwise eligible student who is engaged in a
program of study abroad approved for academic credit by the
home institution at which the student is enrolled shall be
eligible to receive grant, loan, or work assistance under this
title, without regard to whether such study abroad program is
required as part of the student's degree program.
[(p)] (o) Verification of Social Security Number.--The
Secretary of Education, in cooperation with the Commissioner of
the Social Security Administration, shall verify any social
security number provided by a student to an eligible
institution under subsection (a)(4) and shall enforce the
following conditions:
(1) Except as provided in paragraphs (2) and (3), an
institution shall not deny, reduce, delay, or terminate
a student's eligibility for assistance under this part
because social security number verification is pending.
(2) If there is a determination by the Secretary that
the social security number provided to an eligible
institution by a student is incorrect, the institution
shall deny or terminate the student's eligibility for
any grant, loan, or work assistance under this title
until such time as the student provides documented
evidence of a social security number that is determined
by the institution to be correct.
(3) If there is a determination by the Secretary that
the social security number provided to an eligible
institution by a student is incorrect, and a correct
social security number cannot be provided by such
student, and a loan has been guaranteed for such
student under part B of this title, the institution
shall notify and instruct the lender and guaranty
agency making and guaranteeing the loan, respectively,
to cease further disbursements of the loan, but such
guaranty shall not be voided or otherwise nullified
with respect to such disbursements made before the date
that the lender and the guaranty agency receives such
notice.
(4) Nothing in this subsection shall permit the
Secretary to take any compliance, disallowance,
penalty, or other regulatory action against--
(A) any institution of higher education with
respect to any error in a social security
number, unless such error was a result of fraud
on the part of the institution; or
(B) any student with respect to any error in
a social security number, unless such error was
a result of fraud on the part of the student.
[(q)] (p) Use of Income Data.--
(1) Matching with irs.--The Secretary, in cooperation
with the Secretary of the Treasury, is authorized to
obtain from the Internal Revenue Service such
information reported on Federal income tax returns by
applicants, or by any other person whose financial
information is required to be provided on the Federal
student financial aid application, as the Secretary
determines is necessary for the purpose of--
(A) prepopulating the Federal student
financial aid application described in section
483; or
(B) verifying the information reported on
such student financial aid applications.
(2) Consent.--The Secretary may require that
applicants for financial assistance under this title
provide a consent to the disclosure of the data
described in paragraph (1) as a condition of the
student receiving assistance under this title. The
parents of an applicant, in the case of a dependent
student, or the spouse of an applicant, in the case of
an applicant who is married but files separately, may
also be required to provide consent as a condition of
the student receiving assistance under this title.
[(r)] (q) Suspension of Eligibility for Drug-Related
Offenses.--
(1) In general.--A student who is convicted of any
offense under any Federal or State law involving the
possession or sale of a controlled substance for
conduct that occurred during a period of enrollment for
which the student was receiving any grant, loan, or
work assistance under this title shall not be eligible
to receive any grant, loan, or work assistance under
this title from the date of that conviction for the
period of time specified in the following table:
If convicted of an offense involving:
The possession of con-
trolled substance: Ineligibility period is:
First offense..... 1 year ...........................................
Second offense.... 2 years ..........................................
Third offense..... Indefinite. .......................................
The sale of a cont olled
substance: Ineligibility period is:
First offense..... 2 years ..........................................
Second offense.... Indefinite.........................................
(2) Rehabilitation.--A student whose eligibility has
been suspended under paragraph (1) may resume
eligibility before the end of the ineligibility period
determined under such paragraph if--
(A) the student satisfactorily completes a
drug rehabilitation program that--
(i) complies with such criteria as
the Secretary shall prescribe in
regulations for purposes of this
paragraph; and
(ii) includes two unannounced drug
tests;
(B) the student successfully passes two
unannounced drug tests conducted by a drug
rehabilitation program that complies with such
criteria as the Secretary shall prescribe in
regulations for purposes of subparagraph
(A)(i); or
(C) the conviction is reversed, set aside, or
otherwise rendered nugatory.
(3) Definitions.--In this subsection, the term
``controlled substance'' has the meaning given the term
in section 102(6) of the Controlled Substances Act (21
U.S.C. 802(6)).
[(s)] (r) Students With Intellectual Disabilities.--
(1) Definitions.--In this subsection the terms
``comprehensive transition and postsecondary program
for students with intellectual disabilities'' and
``student with an intellectual disability'' have the
meanings given the terms in section 760.
(2) Requirements.--Notwithstanding subsections (a),
(c), and (d), in order to receive any grant or work
assistance under section 401, subpart 3 of part A, or
part C, a student with an intellectual disability
shall--
(A) be enrolled or accepted for enrollment in
a comprehensive transition and postsecondary
program for students with intellectual
disabilities at an institution of higher
education;
(B) be maintaining satisfactory progress in
the program as determined by the institution,
in accordance with standards established by the
institution; and
(C) meet the requirements of paragraphs (3),
(4), (5), and (6) of subsection (a).
(3) Authority.--Notwithstanding any other provision
of law unless such provision is enacted with specific
reference to this section, the Secretary is authorized
to waive any statutory provision applicable to the
student financial assistance programs under section
401, subpart 3 of part A, or part C (other than a
provision of part F related to such a program), or any
institutional eligibility provisions of this title, as
the Secretary determines necessary to ensure that
programs enrolling students with intellectual
disabilities otherwise determined to be eligible under
this subsection may receive such financial assistance.
(4) Regulations.--Notwithstanding regulations
applicable to grant or work assistance awards made
under section 401, subpart 3 of part A, and part C
(other than a regulation under part F related to such
an award), including with respect to eligible programs,
instructional time, credit status, and enrollment
status as described in section 481, the Secretary shall
promulgate regulations allowing programs enrolling
students with intellectual disabilities otherwise
determined to be eligible under this subsection to
receive such awards.
[(t)] (s) Data Analysis on Access to Federal Student Aid For
Certain Populations.--
(1) Development of the system.--Within one year of
enactment of the Higher Education Opportunity Act, the
Secretary shall analyze data from the FAFSA containing
information regarding the number, characteristics, and
circumstances of students denied Federal student aid
based on a drug conviction while receiving Federal aid.
(2) Results from analysis.--The results from the
analysis of such information shall be made available on
a continuous basis via the Department website and the
Digest of Education Statistics.
(3) Data updating.--The data analyzed under this
subsection shall be updated at the beginning of each
award year and at least one additional time during such
award year.
(4) Report to congress.--The Secretary shall prepare
and submit to the authorizing committees, in each
fiscal year, a report describing the results obtained
by the establishment and operation of the data system
authorized by this subsection.
SEC. 484A. STATUTE OF LIMITATIONS, AND STATE COURT JUDGMENTS.
(a) In General.--(1) It is the purpose of this subsection to
ensure that obligations to repay loans and grant overpayments
are enforced without regard to any Federal or State statutory,
regulatory, or administrative limitation on the period within
which debts may be enforced.
(2) Notwithstanding any other provision of statute,
regulation, or administrative limitation, no limitation shall
terminate the period within which suit may be filed, a judgment
may be enforced, or an offset, garnishment, or other action
initiated or taken by--
(A) an institution that receives funds under this
title that is seeking to collect a refund due from a
student on a grant made, or work assistance awarded,
under this title;
(B) a guaranty agency that has an agreement with the
Secretary under section 428(c) that is seeking the
repayment of the amount due from a borrower on a loan
made under part B of this title after such guaranty
agency reimburses the previous holder of the loan for
its loss on account of the default of the borrower;
(C) an institution that has an agreement with the
Secretary pursuant to section 453 [or 463(a)], section
463(a) (as in effect on the day before the date of
enactment of the PROSPER Act and pursuant to section
461(a) of such Act), or section 463 (as in effect on or
after the date of enactment of the PROSPER Act) that is
seeking the repayment of the amount due from a borrower
on a loan made under part D [or E], E (as in effect on
the day before the date of enactment of the PROSPER Act
and pursuant to section 461(a) of such Act), or E (as
in effect on or after the date of enactment of the
PROSPER Act) of this title after the default of the
borrower on such loan; or
(D) the Secretary, the Attorney General, or the
administrative head of another Federal agency, as the
case may be, for payment of a refund due from a student
on a grant made under this title, or for the repayment
of the amount due from a borrower on a loan made under
this title that has been assigned to the Secretary
under this title.
(b) Assessment of Costs and Other Charges.--Notwithstanding
any provision of State law to the contrary--
(1) a borrower who has defaulted on a loan made under
this title shall be required to pay, in addition to
other charges specified in this title, reasonable
collection costs;
(2) in collecting any obligation arising from a loan
made under part B of this title, a guaranty agency or
the Secretary shall not be subject to a defense raised
by any borrower based on a claim of infancy; [and]
(3) in collecting any obligation arising from a loan
made under part E (as in effect on the day before the
date of enactment of the PROSPER Act and pursuant to
section 461(a) of such Act), an institution of higher
education that has an agreement with the Secretary
pursuant to section 463(a) (as so in effect) shall not
be subject to a defense raised by any borrower based on
a claim of infancy[.]; and
(4) in collecting any obligation arising from a loan
made under part E (as in effect on or after the date of
enactment of the PROSPER Act), an institution of higher
education that has an agreement with the Secretary
pursuant to section 463(a) (as so in effect) shall not
be subject to a defense raised by any borrower based on
a claim of infancy.
(c) State Court Judgments.--A judgment of a State court for
the recovery of money provided as grant, loan, or work
assistance under this title that has been assigned or
transferred to the Secretary under this title may be registered
in any district court of the United States by filing a
certified copy of the judgment and a copy of the assignment or
transfer. A judgment so registered shall have the same force
and effect, and may be enforced in the same manner, as a
judgment of the district court of the district in which the
judgment is registered.
(d) Special Rule.--This section shall not apply in the case
of a student who is deceased, or to a deceased student's estate
or the estate of such student's family. If a student is
deceased, then the student's estate or the estate of the
student's family shall not be required to repay any financial
assistance under this title, including interest paid on the
student's behalf, collection costs, or other charges specified
in this title.
SEC. 484B. INSTITUTIONAL REFUNDS.
(a) Return of Title IV Funds.--
(1) In general.--[If a recipient]
(A) Consequence of withdrawal._If a recipient
of assistance under this title withdraws from
an institution during a payment period or
period of enrollment in which the recipient
began attendance, the amount of grant or loan
assistance (other than assistance received
under part C) to be returned to the title IV
programs is calculated according to paragraph
(3) and returned in accordance with subsection
(b).
(B) Special rule.--For purposes of
subparagraph (A), a student--
(i) who is enrolled in a program
offered in modules is not considered
withdrawn if the change in the
student's attendance constitutes a
change in enrollment status within the
payment period rather than a
discontinuance of attendance within the
payment period; and
(ii) is considered withdrawn if the
student follows the institution's
official withdrawal procedures or
leaves without notifying the
institution and has not returned before
the end of the payment period.
(2) Leave of absence.--
(A) Leave not treated as withdrawal.--In the
case of a student who takes 1 or more leaves of
absence from an institution for not more than a
total of 180 days in any 12-month period, the
institution may consider the student as not
having withdrawn from the institution during
the leave of absence, and not calculate the
amount of grant and loan assistance provided
under this title that is to be returned in
accordance with this section if--
(i) the institution has a formal
policy regarding leaves of absence;
(ii) the student followed the
institution's policy in requesting a
leave of absence; and
(iii) the institution approved the
student's request in accordance with
the institution's policy.
(B) Consequences of failure to return.--If a
student does not return to the institution at
the expiration of an approved leave of absence
that meets the requirements of subparagraph
(A), the institution shall calculate the amount
of grant and loan assistance provided under
this title that is to be returned in accordance
with this section based on the day the student
withdrew (as determined under subsection (c)).
(3) Calculation of amount of title iv assistance
earned.--
(A) In general.--The amount of grant or loan
assistance under this title that is earned by
the recipient for purposes of this section is
calculated by--
(i) determining the percentage of
grant and loan assistance under this
title that has been earned by the
student, as described in subparagraph
(B); and
(ii) applying such percentage to the
total amount of such grant and loan
assistance that was disbursed (and that
could have been disbursed) to the
student, or on the student's behalf,
for the payment period or period of
enrollment for which the assistance was
awarded, as of the day the student
withdrew.
(B) Percentage earned.--For purposes of
subparagraph (A)(i), the percentage of grant or
loan assistance under this title that has been
earned by the student is--
[(i) equal to the percentage of the
payment period or period of enrollment
for which assistance was awarded that
was completed (as determined in
accordance with subsection (d)) as of
the day the student withdrew, provided
that such date occurs on or before the
completion of 60 percent of the payment
period or period of enrollment; or
[(ii) 100 percent, if the day the
student withdrew occurs after the
student has completed (as determined in
accordance with subsection (d)) 60
percent of the payment period or period
of enrollment.]
(i) 0 percent, if the day the student
withdrew occurs when the student has
completed (as determined in accordance
with subsection (d)) 0 to 24 percent of
the payment period or period of
enrollment;
(ii) 25 percent, if the day the
student withdrew occurs when the
student has completed (as determined in
accordance with subsection (d)) 25 to
49 percent of the payment period or
period of enrollment;
(iii) 50 percent, if the day the
student withdrew occurs when the
student has completed (as determined in
accordance with subsection (d)) 50 to
74 percent of the payment period or
period of enrollment; or
(iv) 75 percent, if the day the
student withdrew occurs when the
student has completed (as determined in
accordance with subsection (d)) 75 to
99 percent of the payment period or
period of enrollment.
(C) Percentage and amount not earned.--For
purposes of subsection (b), the amount of grant
and loan assistance awarded under this title
that has not been earned by the student shall
be calculated by--
(i) determining the complement of the
percentage of grant assistance under
[subparts 1 and 3 of part A, or loan
assistance under parts B, D,] subpart 1
of part A or loan assistance under
parts D and E, that has been earned by
the student described in subparagraph
(B); and
(ii) applying the percentage
determined under clause (i) to the
total amount of such grant and loan
assistance that was disbursed (and that
could have been disbursed) to the
student, or on the student's behalf,
for the payment period or period of
enrollment, as of the day the student
withdrew.
(4) Differences between amounts earned and amounts
received.--
(A) In general.--After determining the
eligibility of the student for a late
disbursement or post-withdrawal disbursement
(as required in regulations prescribed by the
[Secretary), the institution of higher
education shall contact the borrower]
Secretary), the institution of higher education
shall have discretion to determine whether all
or a portion of the late or post-withdrawal
disbursement should be made, under a publicized
institutional policy. If the institution of
higher education determines that a disbursement
should be made, the institution shall contact
the borrower and obtain confirmation that the
loan funds are still required by the borrower.
In making such contact, the institution shall
explain to the borrower the borrower's
obligation to repay the funds following any
such disbursement. The institution shall
document in the borrower's file the result of
such contact and the final determination made
concerning such disbursement.
(B) Return.--If the student has received more
grant or loan assistance than the amount earned
as calculated under paragraph (3)(A), the
unearned funds shall be returned by the
[institution or the student, or both, as may be
required under paragraphs (1) and (2) of
subsection (b), to the programs under this
title in the order specified in] institution,
as may be required under paragraph (1) of
subsection (b), to the programs under this
title in accordance with subsection (b)(3).
[(b) Return of Title IV Program Funds.--
[(1) Responsibility of the institution.--The
institution shall return not later than 45 days from
the determination of withdrawal, in the order specified
in paragraph (3), the lesser of--
[(A) the amount of grant and loan assistance
awarded under this title that has not been
earned by the student, as calculated under
subsection (a)(3)(C); or
[(B) an amount equal to--
[(i) the total institutional charges
incurred by the student for the payment
period or period of enrollment for
which such assistance was awarded;
multiplied by
[(ii) the percentage of grant and
loan assistance awarded under this
title that has not been earned by the
student, as described in subsection
(a)(3)(C)(i).
[(2) Responsibility of the student.--
[(A) In general.--The student shall return
assistance that has not been earned by the
student as described in subsection
(a)(3)(C)(ii) in the order specified in
paragraph (3) minus the amount the institution
is required to return under paragraph (1).
[(B) Special rule.--The student (or parent in
the case of funds due to a loan borrowed by a
parent under part B or D) shall return or
repay, as appropriate, the amount determined
under subparagraph (A) to--
[(i) a loan program under this title
in accordance with the terms of the
loan; and
[(ii) a grant program under this
title, as an overpayment of such grant
and shall be subject to--
[(I) repayment arrangements
satisfactory to the
institution; or
[(II) overpayment collection
procedures prescribed by the
Secretary.
[(C) Grant overpayment requirements.--
[(i) In general.--Notwithstanding
subparagraphs (A) and (B), a student
shall only be required to return grant
assistance in the amount (if any) by
which--
[(I) the amount to be
returned by the student (as
determined under subparagraphs
(A) and (B)), exceeds
[(II) 50 percent of the total
grant assistance received by
the student under this title
for the payment period or
period of enrollment.
[(ii) Minimum.--A student shall not
be required to return amounts of $50 or
less.
[(D) Waivers of federal pell grant repayment
by students affected by disasters.--The
Secretary may waive the amounts that students
are required to return under this section with
respect to Federal Pell Grants if the
withdrawals on which the returns are based are
withdrawals by students--
[(i) who were residing in, employed
in, or attending an institution of
higher education that is located in an
area in which the President has
declared that a major disaster exists,
in accordance with section 401 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C.
5170);
[(ii) whose attendance was
interrupted because of the impact of
the disaster on the student or the
institution; and
[(iii) whose withdrawal ended within
the academic year during which the
designation occurred or during the next
succeeding academic year.
[(E) Waivers of grant assistance repayment by
students affected by disasters.--In addition to
the waivers authorized by subparagraph (D), the
Secretary may waive the amounts that students
are required to return under this section with
respect to any other grant assistance under
this title if the withdrawals on which the
returns are based are withdrawals by students--
[(i) who were residing in, employed
in, or attending an institution of
higher education that is located in an
area in which the President has
declared that a major disaster exists,
in accordance with section 401 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C.
5170);
[(ii) whose attendance was
interrupted because of the impact of
the disaster on the student or the
institution; and
[(iii) whose withdrawal ended within
the academic year during which the
designation occurred or during the next
succeeding academic year.
[(3) Order of return of title iv funds.--
[(A) In general.--Excess funds returned by
the institution or the student, as appropriate,
in accordance with paragraph (1) or (2),
respectively, shall be credited to outstanding
balances on loans made under this title to the
student or on behalf of the student for the
payment period or period of enrollment for
which a return of funds is required. Such
excess funds shall be credited in the following
order:
[(i) To outstanding balances on loans
made under section 428H for the payment
period or period of enrollment for
which a return of funds is required.
[(ii) To outstanding balances on
loans made under section 428 for the
payment period or period of enrollment
for which a return of funds is
required.
[(iii) To outstanding balances on
unsubsidized loans (other than parent
loans) made under part D for the
payment period or period of enrollment
for which a return of funds is
required.
[(iv) To outstanding balances on
subsidized loans made under part D for
the payment period or period of
enrollment for which a return of funds
is required.
[(v) To outstanding balances on loans
made under part E for the payment
period or period of enrollment for
which a return of funds is required.
[(vi) To outstanding balances on
loans made under section 428B for the
payment period or period of enrollment
for which a return of funds is
required.
[(vii) To outstanding balances on
parent loans made under part D for the
payment period or period of enrollment
for which a return of funds is
required.
[(B) Remaining excesses.--If excess funds
remain after repaying all outstanding loan
amounts, the remaining excess shall be credited
in the following order:
[(i) To awards under subpart 1 of
part A for the payment period or period
of enrollment for which a return of
funds is required.
[(ii) To awards under subpart 3 of
part A for the payment period or period
of enrollment for which a return of
funds is required.
[(iii) To other assistance awarded
under this title for which a return of
funds is required.
[(c) Withdrawal Date.--
[(1) In general.--In this section, the term ``day the
student withdrew''--
[(A) is the date that the institution
determines--
[(i) the student began the withdrawal
process prescribed by the institution;
[(ii) the student otherwise provided
official notification to the
institution of the intent to withdraw;
or
[(iii) in the case of a student who
does not begin the withdrawal process
or otherwise notify the institution of
the intent to withdraw, the date that
is the mid-point of the payment period
for which assistance under this title
was disbursed or a later date
documented by the institution; or
[(B) for institutions required to take
attendance, is determined by the institution
from such attendance records.
[(2) Special rule.--Notwithstanding paragraph (1), if
the institution determines that a student did not begin
the withdrawal process, or otherwise notify the
institution of the intent to withdraw, due to illness,
accident, grievous personal loss, or other such
circumstances beyond the student's control, the
institution may determine the appropriate withdrawal
date.
[(d) Percentage of the Payment Period or Period of Enrollment
Completed.--For purposes of subsection (a)(3)(B), the
percentage of the payment period or period of enrollment for
which assistance was awarded that was completed, is
determined--
[(1) in the case of a program that is measured in
credit hours, by dividing the total number of calendar
days comprising the payment period or period of
enrollment for which assistance is awarded into the
number of calendar days completed in that period as of
the day the student withdrew; and
[(2) in the case of a program that is measured in
clock hours, by dividing the total number of clock
hours comprising the payment period or period of
enrollment for which assistance is awarded into the
number of clock hours scheduled to be completed by the
student in that period as of the day the student
withdrew.
[(e) Effective Date.--The provisions of this section shall
take effect 2 years after the date of enactment of the Higher
Education Amendments of 1998. An institution of higher
education may choose to implement such provisions prior to that
date.]
(b) Return of Title IV Program Funds.--
(1) Responsibility of the institution.--The
institution shall return not later than 60 days from
the determination of withdrawal, in accordance with
paragraph (3), the amount of grant and loan assistance
awarded under this title that has not been earned by
the student, as calculated under subsection (a)(3)(C).
(2) Responsibility of the student.--
(A) In general.--The student is not
responsible to return assistance that has not
been earned, except that the institution may
require the student to pay to the institution
up to 10 percent of the amount owed by the
institution in paragraph (1).
(B) Rule of construction.--Nothing in this
section shall be construed to prevent an
institution from enforcing the published
institutional refund policies of such
institution.
(3) Order of return of title iv funds.--
(A) In general.--Excess funds returned by the
institution in accordance with paragraph (1)
shall be credited to awards under subpart 1 of
part A for the payment period or period of
enrollment for which a return of funds is
required.
(B) Remaining excesses.--If excess funds
remain after repaying all outstanding grant
amounts, the remaining excess shall be credited
in the following order:
(i) To outstanding balances on loans
made under this title to the student or
on behalf of the student for the
payment period or period of enrollment
for which a return of funds is
required.
(ii) To other assistance awarded
under this title for which a return of
funds is required.
(c) Withdrawal Date.--
(1) In general.--In this section, the term ``day the
student withdrew''--
(A) for institutions not required to take
attendance, is the date as determined by the
institution that--
(i) the student began the withdrawal
process prescribed and publicized by
the institution, or a later date if the
student continued attendance despite
beginning the withdrawal process, but
did not then complete the payment
period; or
(ii) in the case of a student who
does not begin the withdrawal process,
the date that is the mid-point of the
payment period for which assistance
under this title was disbursed or
another date documented by the
institution; or
(B) for institutions required to take
attendance, is determined by the institution
from such attendance records.
(2) Special rule.--Notwithstanding paragraph (1), if
the institution determines that a student did not begin
the withdrawal process, due to illness, accident,
grievous personal loss, or other such circumstances
beyond the student's control, the institution may
determine the appropriate withdrawal date under its own
defined policies.
(3) Attendance.--An institution is required to take
attendance if an institution's accrediting agency or
State licensing agency has a requirement that the
institution take attendance for all students in an
academic program throughout the entire payment period.
* * * * * * *
SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--(1) Each eligible
institution participating in any program under this title shall
carry out information dissemination activities for prospective
and enrolled students (including those attending or planning to
attend less than full time) regarding the institution and all
financial assistance under this title. [The information
required by this section shall be produced and be made readily
available upon request, through appropriate publications,
mailings, and electronic media, to an enrolled student and to
any prospective student. Each eligible institution shall, on an
annual basis, provide to all enrolled students a list of the
information that is required to be provided by institutions to
students by this section and section 444 of the General
Education Provisions Act (commonly known as the ``Family
Educational Rights and Privacy Act of 1974''), together with a
statement of the procedures required to obtain such
information.] The information required by this section shall be
produced and be made readily available to enrolled and
prospective students on the institution's website (or in other
formats upon request). The information required by this section
shall accurately describe--
(A) the student financial assistance programs
available to students who enroll at such institution;
(B) the methods by which such assistance is
distributed among student recipients who enroll at such
institution;
(C) any means, including forms, by which application
for student financial assistance is made and
requirements for accurately preparing such application;
(D) the rights and responsibilities of students
receiving financial assistance under this title;
(E) the cost of attending the institution, including
(i) tuition and fees, (ii) books and supplies, (iii)
estimates of typical student room and board costs or
typical commuting costs, and (iv) any additional cost
of the program in which the student is enrolled or
expresses a specific interest;
(F) a statement of--
(i) the requirements of any refund policy
with which the institution is required to
comply;
(ii) the requirements under section 484B for
the return of grant or loan assistance provided
under this title; and
(iii) the requirements for officially
withdrawing from the institution;
(G) the academic program of the institution,
including (i) the current degree programs and other
educational and training programs, (ii) the
instructional, laboratory, and other physical plant
facilities which relate to the academic program, (iii)
the faculty and other instructional personnel, and (iv)
any plans by the institution for improving the academic
program of the institution;
(H) each person designated under subsection (c) of
this section, and the methods by which and locations in
which any person so designated may be contacted by
students and prospective students who are seeking
information required by this subsection;
(I) special facilities and services available to
students with disabilities;
(J) the names of associations, agencies, or
governmental bodies which accredit, approve, or license
the institution and its programs, and the procedures
under which any current or prospective student may
obtain or review upon request a copy of the documents
describing the institution's accreditation, approval,
or licensing;
(K) the standards which the student must maintain in
order to be considered to be making satisfactory
progress, pursuant to section 484(a)(2);
[(L) the completion or graduation rate of
certificate- or degree-seeking, full-time,
undergraduate students entering such institutions;]
[(M)(L) the terms and conditions of the loans
that students receive under parts B, D, and E;
[(N)] (M) that enrollment in a program of study
abroad approved for credit by the home institution may
be considered enrollment in the home institution for
purposes of applying for Federal student financial
assistance;
[(O)] (N) the campus crime report prepared by the
institution pursuant to subsection (f), including all
required reporting categories;
[(P)] (O) institutional policies and
sanctions related to copyright infringement[,
including--]
[(i) an annual disclosure that
explicitly informs students that
unauthorized distribution of
copyrighted material, including
unauthorized peer-to-peer file sharing,
may subject the students to civil and
criminal liabilities;
[(ii) a summary of the penalties for
violation of Federal copyright laws;
and
[(iii) a description of the
institution's policies with respect to
unauthorized peer-to-peer file sharing,
including disciplinary actions that are
taken against students who engage in
unauthorized distribution of
copyrighted materials using the
institution's information technology
system;].
[(Q) student body diversity at the
institution, including information on the
percentage of enrolled, full-time students
who--
[(i) are male;
[(ii) are female;
[(iii) receive a Federal Pell Grant;
and
[(iv) are a self-identified member of
a major racial or ethnic group;
[(R) the placement in employment of, and
types of employment obtained by, graduates of
the institution's degree or certificate
programs, gathered from such sources as alumni
surveys, student satisfaction surveys, the
National Survey of Student Engagement, the
Community College Survey of Student Engagement,
State data systems, or other relevant sources;
[(S) the types of graduate and professional
education in which graduates of the
institution's four-year degree programs
enrolled, gathered from such sources as alumni
surveys, student satisfaction surveys, the
National Survey of Student Engagement, State
data systems, or other relevant sources;
[(T) the fire safety report prepared by the
institution pursuant to subsection (i);
[(U) the retention rate of certificate- or
degree-seeking, first-time, full-time,
undergraduate students entering such
institution; and
[(V) institutional policies regarding
vaccinations.]
(P) the fire safety report prepared by the
institution pursuant to subsection (i); and
(Q) the link to the institution's information
on the College Dashboard website operated under
section 132.
(2) For the purpose of this section, the term ``prospective
student'' means any individual who has contacted an eligible
institution requesting information concerning admission to that
institution.
[(3) In calculating the completion or graduation rate under
subparagraph (L) of paragraph (1) of this subsection or under
subsection (e), a student shall be counted as a completion or
graduation if, within 150 percent of the normal time for
completion of or graduation from the program, the student has
completed or graduated from the program, or enrolled in any
program of an eligible institution for which the prior program
provides substantial preparation. The information required to
be disclosed under such subparagraph--
[(A) shall be made available by July 1 each year to
enrolled students and prospective students prior to the
students enrolling or entering into any financial
obligation; and
[(B) shall cover the one-year period ending on August
31 of the preceding year.
[(4) For purposes of this section, institutions may--
[(A) exclude from the information disclosed
in accordance with subparagraph (L) of
paragraph (1) the completion or graduation
rates of students who leave school to serve in
the Armed Forces, on official church missions,
or with a recognized foreign aid service of the
Federal Government; or
[(B) in cases where the students described in
subparagraph (A) represent 20 percent or more
of the certificate- or degree-seeking, full-
time, undergraduate students at the
institution, recalculate the completion or
graduation rates of such students by excluding
from the calculation described in paragraph (3)
the time period during which such students were
not enrolled due to their service in the Armed
Forces, on official church missions, or with a
recognized foreign aid service of the Federal
Government.
[(5) The Secretary shall permit any institution of higher
education that is a member of an athletic association or
athletic conference that has voluntarily published completion
or graduation rate data or has agreed to publish data that, in
the opinion of the Secretary, is substantially comparable to
the information required under this subsection, to use such
data to satisfy the requirements of this subsection; and
[(6) Each institution may provide supplemental information to
enrolled and prospective students showing the completion or
graduation rate for students described in paragraph (4) or for
students transferring into the institution or information
showing the rate at which students transfer out of the
institution.
[(7)(A)(i) Subject to clause (ii), the information
disseminated under paragraph (1)(L), or reported under
subsection (e), shall be disaggregated by gender, by
each major racial and ethnic subgroup, by recipients of
a Federal Pell Grant, by recipients of a loan made
under part B or D (other than a loan made under section
428H or a Federal Direct Unsubsidized Stafford Loan)
who did not receive a Federal Pell Grant, and by
recipients of neither a Federal Pell Grant nor a loan
made under part B or D (other than a loan made under
section 428H or a Federal Direct Unsubsidized Stafford
Loan), if the number of students in such subgroup or
with such status is sufficient to yield statistically
reliable information and reporting will not reveal
personally identifiable information about an individual
student. If such number is not sufficient for such
purposes, then the institution shall note that the
institution enrolled too few of such students to so
disclose or report with confidence and confidentiality.
[(ii) The requirements of clause (i) shall not apply
to two-year, degree-granting institutions of higher
education until academic year 2011-2012.
[(B)(i) In order to assist two-year degree-granting
institutions of higher education in meeting the
requirements of paragraph (1)(L) and subsection (e),
the Secretary, in consultation with the Commissioner
for Education Statistics, shall, not later than 90 days
after the date of enactment of the Higher Education
Opportunity Act, convene a group of representatives
from diverse institutions of higher education, experts
in the field of higher education policy, state higher
education officials, students, and other stakeholders
in the higher education community, to develop
recommendations regarding the accurate calculation and
reporting of the information required to be
disseminated or reported under paragraph (1)(L) and
subsection (e) by two-year, degree-granting
institutions of higher education. In developing such
recommendations, the group of representatives shall
consider the mission and role of two-year degree-
granting institutions of higher education, and may
recommend additional or alternative measures of student
success for such institutions in light of the mission
and role of such institutions.
[(ii) The Secretary shall widely disseminate the
recommendations required under this subparagraph to
two-year, degree-granting institutions of higher
education, the public, and the authorizing committees
not later than 18 months after the first meeting of the
group of representatives convened under clause (i).
[(iii) The Secretary shall use the recommendations
from the group of representatives convened under clause
(i) to provide technical assistance to two-year,
degree-granting institutions of higher education in
meeting the requirements of paragraph (1)(L) and
subsection (e).
[(iv) The Secretary may modify the information
required to be disseminated or reported under paragraph
(1)(L) or subsection (e) by a two-year, degree-granting
institution of higher education--
[(I) based on the recommendations received
under this subparagraph from the group of
representatives convened under clause (i);
[(II) to include additional or alternative
measures of student success if the goals of the
provisions of paragraph (1)(L) and subsection
(e) can be met through additional means or
comparable alternatives; and
[(III) during the period beginning on the
date of enactment of the Higher Education
Opportunity Act, and ending on June 30, 2011.]
(b) Exit Counseling for Borrowers.--(1)(A) Each eligible
institution shall, [through financial aid offices or otherwise]
through the use of an interactive program, during an exit
counseling session that is in-person or online, or through the
use of the online counseling tool described in subsection
(n)(1)(A), provide counseling to borrowers of loans that are
made, insured, or guaranteed under part B (other than loans
made pursuant to section 428C or loans under section 428B made
on behalf of a student) or made under part D (other than
Federal Direct Consolidation Loans or Federal Direct PLUS Loans
made on behalf of a student) or made under part E, as in effect
on the day before the date of enactment of the PROSPER Act and
pursuant to section 461(a) of such Act or made under part E
(other than Federal ONE Parent Loans), as in effect on or after
the date of enactment of the PROSPER Act of this title prior to
the completion of the course of study for which the borrower
enrolled at the institution or at the time of departure from
such institution. The counseling required by this subsection
shall include--
(i) a summary of the outstanding balance of principal
and interest due on the loans made to the borrower
under this title;
(ii) an explanation of the grace period preceding
repayment and the expected date that the borrower will
enter repayment;
(iii) an explanation of cases of interest
capitalization and that the borrower has the option to
pay any interest that has accrued while the borrower
was in school or that may accrue during the grace
period preceding repayment or during an authorized
period of deferment or forbearance, prior to the
capitalization of the interest;
[(i)] (iv) information on the repayment plans
available, including a description of the different
features [of each plan] of at least the standard
repayment plan and the income-based repayment plan
under section 466(d) and [sample information showing
the average] information, based on the borrower's
outstanding balance described in clause (i), showing
the borrower's anticipated monthly payments, and the
difference in interest paid and total payments, under
each plan;
[(ii)] (v) debt management strategies that are
designed to facilitate the repayment of such
indebtedness;
[(iii)] (vi) an explanation that the borrower has the
options to prepay each loan, pay each loan on a shorter
schedule, and change repayment plans;
[(iv)] (vii) for any loan forgiveness or cancellation
provision of this title, a general description of the
terms and conditions under which the borrower may
obtain full or partial forgiveness or cancellation of
the principal and interest, and a copy of the
information provided by the Secretary under section
485(d);
[(v)] (viii) for any forbearance provision of this
title, a general description of the terms and
conditions under which the borrower may defer repayment
of principal or interest or be granted forbearance, and
a copy of the information provided by the Secretary
under section 485(d);
[(vi)] (ix) the consequences of defaulting on a loan,
including adverse credit reports, decreased credit
score, delinquent debt collection procedures under
Federal law, potential reduced ability to rent or
purchase a home or car, potential difficulty in
securing employment, and litigation;
[(vii)] (x) information on the effects of using a
[consolidation loan under section 428C or a] Federal
Direct Consolidation Loan to discharge the borrower's
loans under parts B, D, and E, including at a minimum--
(I) the effects of consolidation on total
interest to be paid, fees to be paid, and
length of repayment;
(II) the effects of consolidation on a
borrower's underlying loan benefits, including
grace periods, loan forgiveness, cancellation,
and deferment opportunities;
(III) the option of the borrower to prepay
the loan or to change repayment plans; and
(IV) that borrower benefit programs may vary
among different lenders;
[(viii)] (xi) a general description of the types of
tax benefits that may be available to borrowers; [and]
[(ix)] (xii) a notice to borrowers about the
availability of the National Student Loan Data System
and how the system can be used by a borrower to obtain
information on the status of the borrower's loans;
[and]
(xiii) for each of the borrower's loans made under
this title for which the borrower is receiving
counseling under this subsection, the contact
information for the servicer of the loan and a link to
the Website of such servicer; and
(xiv) an explanation that an individual has a right
to annually request a disclosure of information
collected by a consumer reporting agency pursuant to
section 612(a) of the Fair Credit Reporting Act (15
U.S.C. 1681j(a)).
(B) In the case of borrower who leaves an institution without
the prior knowledge of the institution, the institution shall
attempt to provide the information described in subparagraph
(A) to the student online or in writing, except that in the
case of an institution using the online counseling tool
described in subsection (n)(1)(A), the Secretary shall attempt
to provide such information to the student in the manner
described in subsection (n)(3)(C).
(2)(A) Each eligible institution shall require that the
borrower of a loan made under part B, D, or E submit to the
institution, during the exit interview required by this
subsection--
(i) the borrower's expected permanent address after
leaving the institution (regardless of the reason for
leaving);
(ii) the name and address of the borrower's expected
employer after leaving the institution;
(iii) the address of the borrower's next of kin; and
(iv) any corrections in the institution's records
relating the borrower's name, address, social security
number, references, and driver's license number.
(B) The institution shall, within 60 days after the
interview, forward any corrected or completed information
received from the borrower to the guaranty agency indicated on
the borrower's student aid records.
(C) Nothing in this subsection shall be construed to prohibit
an institution of higher education from utilizing electronic
means, such as the online counseling tool described in
subsection (n)(1)(A), to provide personalized exit counseling.
(c) Financial Assistance Information Personnel.--Each
eligible institution shall designate an employee or group of
employees who shall be available on a full-time basis to assist
students or potential students in obtaining information as
specified in subsection (a). The Secretary may, by regulation,
waive the requirement that an employee or employees be
available on a full-time basis for carrying out
responsibilities required under this section whenever an
institution in which the total enrollment, or the portion of
the enrollment participating in programs under this title at
that institution, is too small to necessitate such employee or
employees being available on a full-time basis. No such waiver
may include permission to exempt any such institution from
designating a specific individual or a group of individuals to
carry out the provisions of this section.
(d) Departmental Publication of Descriptions of Assistance
Programs.--(1) The Secretary shall make available to eligible
institutions, eligible lenders, and secondary schools
descriptions of Federal student assistance programs including
the rights and responsibilities of student and institutional
participants, in order to (A) assist students in gaining
information through institutional sources, and (B) assist
institutions in carrying out the provisions of this section, so
that individual and institutional participants will be fully
aware of their rights and responsibilities under such programs.
In particular, such information shall include information to
enable students and prospective students to assess the debt
burden and monthly and total repayment obligations that will be
incurred as a result of receiving loans of varying amounts
under this title. Such information shall also include
information on the various payment options available for
student loans, including income-sensitive and income-based
repayment plans for loans made, insured, or guaranteed under
part B and income-contingent and income-based repayment plans
for loans made under [part D] part D or E. In addition, such
information shall include information to enable borrowers to
assess the practical consequences of loan consolidation,
including differences in deferment eligibility, interest rates,
monthly payments, and finance charges, and samples of loan
consolidation profiles to illustrate such consequences. The
Secretary shall provide information concerning the specific
terms and conditions under which students may obtain partial or
total cancellation or defer repayment of loans for service,
shall indicate (in terms of the Federal minimum wage) the
maximum level of compensation and allowances that a student
borrower may receive from a tax-exempt organization to qualify
for a deferment, and shall explicitly state that students may
qualify for such partial cancellations or deferments when they
serve as a paid employee of a tax-exempt organization. The
Secretary shall also provide information on loan forbearance,
including the increase in debt that results from capitalization
of interest. Such information shall be provided by eligible
institutions and eligible lenders at any time that information
regarding loan availability is provided to any student.
(2) The Secretary, to the extent the information is
available, shall compile information describing State and other
prepaid tuition programs and savings programs and disseminate
such information to States, eligible institutions, students,
and parents in departmental publications.
(3) The Secretary, to the extent practicable, shall update
the Department's Internet site to include direct links to
databases that contain information on public and private
financial assistance programs. The Secretary shall only provide
direct links to databases that can be accessed without charge
and shall make reasonable efforts to verify that the databases
included in a direct link are not providing fraudulent
information. The Secretary shall prominently display adjacent
to any such direct link a disclaimer indicating that a direct
link to a database does not constitute an endorsement or
recommendation of the database, the provider of the database,
or any services or products of such provider. The Secretary
shall provide additional direct links to information resources
from which students may obtain information about fraudulent and
deceptive practices in the provision of services related to
student financial aid.
(4) The Secretary shall widely publicize the location of the
information described in paragraph (1) among the public,
eligible institutions, and eligible lenders, and promote the
use of such information by prospective students, enrolled
students, families of prospective and enrolled students, and
borrowers.
(e) Disclosures Required With Respect to Athletically Related
Student Aid.--(1) Each institution of higher education which
participates in any program under this title and is attended by
students receiving athletically related student aid shall
annually submit a report to the Secretary which contains--
(A) the number of students at the institution of
higher education who received athletically related
student aid broken down by race and sex in the
following sports: basketball, football, baseball, cross
country/track, and all other sports combined;
(B) the number of students at the institution of
higher education, broken down by race and sex;
(C) the completion or graduation rate for students at
the institution of higher education who received
athletically related student aid broken down by race
and sex in the following sports: basketball, football,
baseball, cross country/track and all other sports
combined;
(D) the completion or graduation rate for students at
the institution of higher education, broken down by
race and sex;
(E) the average completion or graduation rate for the
4 most recent completing or graduating classes of
students at the institution of higher education who
received athletically related student aid broken down
by race and sex in the following categories:
basketball, football, baseball, cross country/track,
and all other sports combined; and
(F) the average completion or graduation rate for the
4 most recent completing or graduating classes of
students at the institution of higher education broken
down by race and sex.
(2) When an institution described in paragraph (1) of this
subsection offers a potential student athlete athletically
related student aid, such institution shall provide to the
student and the student's parents, guidance counselor, and
coach the information contained in the report submitted by such
institution pursuant to paragraph (1). If the institution is a
member of a national collegiate athletic association that
compiles graduation rate data on behalf of the association's
member institutions that the Secretary determines is
substantially comparable to the information described in
paragraph (1), the distribution of the compilation of such data
to all secondary schools in the United States shall fulfill the
responsibility of the institution to provide information to a
prospective student athlete's guidance counselor and coach.
(3) For purposes of this subsection, institutions
may--
(A) exclude from the reporting requirements
under paragraphs (1) and (2) the completion or
graduation rates of students and student
athletes who leave school to serve in the Armed
Forces, on official church missions, or with a
recognized foreign aid service of the Federal
Government; or
(B) in cases where the students described in
subparagraph (A) represent 20 percent or more
of the certificate- or degree-seeking, full-
time, undergraduate students at the
institution, calculate the completion or
graduation rates of such students by excluding
from the calculations described in paragraph
(1) the time period during which such students
were not enrolled due to their service in the
Armed Forces, on official church missions, or
with a recognized foreign aid service of the
Federal Government.
(4) Each institution of higher education described in
paragraph (1) may provide supplemental information to students
and the Secretary showing the completion or graduation rate
when such completion or graduation rate includes students
transferring into and out of such institution.
(5) The Secretary, using the reports submitted under this
subsection, shall compile and publish a report containing the
information required under paragraph (1) broken down by--
(A) individual institutions of higher education; and
(B) athletic conferences recognized by the National
Collegiate Athletic Association and the National
Association of Intercollegiate Athletics.
(6) The Secretary shall waive the requirements of this
subsection for any institution of higher education that is a
member of an athletic association or athletic conference that
has voluntarily published completion or graduation rate data or
has agreed to publish data that, in the opinion of the
Secretary, is substantially comparable to the information
required under this subsection.
(7) The Secretary, in conjunction with the National Junior
College Athletic Association, shall develop and obtain data on
completion or graduation rates from two-year colleges that
award athletically related student aid. Such data shall, to the
extent practicable, be consistent with the reporting
requirements set forth in this section.
(8) For purposes of this subsection, the term ``athletically
related student aid'' means any scholarship, grant, or other
form of financial assistance the terms of which require the
recipient to participate in a program of intercollegiate
athletics at an institution of higher education in order to be
eligible to receive such assistance.
(9) The reports required by this subsection shall be due each
July 1 and shall cover the 1-year period ending August 31 of
the preceding year.
(f) Disclosure of Campus Security Policy and Campus Crime
Statistics.--(1) Each eligible institution participating in any
program under this title, other than a foreign institution of
higher education, shall on August 1, 1991, begin to collect the
following information with respect to campus crime statistics
and campus security policies of that institution, and beginning
September 1, 1992, and each year thereafter, prepare, publish,
and distribute, through appropriate publications or mailings,
to all current students and employees, and to any applicant for
enrollment or employment upon request, an annual security
report containing at least the following information with
respect to the campus security policies and campus crime
statistics of that institution:
(A) A statement of current campus policies regarding
procedures and facilities for students and others to
report criminal actions or other emergencies occurring
on campus and policies concerning the institution's
response to such reports.
(B) A statement of current policies concerning
security and access to campus facilities, including
campus residences, and security considerations used in
the maintenance of campus facilities.
(C) A statement of current policies concerning campus
law enforcement, including--
(i) the law enforcement authority of campus
security personnel;
(ii) the working relationship of campus
security personnel with State and local law
enforcement agencies, including whether the
institution has agreements with such agencies,
such as written memoranda of understanding, for
the investigation of alleged criminal offenses;
and
(iii) policies which encourage accurate and
prompt reporting of all crimes to the campus
police and the appropriate law enforcement
agencies, when the victim of such crime elects
or is unable to make such a report.
(D) A description of the type and frequency of
programs designed to inform students and employees
about campus security procedures and practices and to
encourage students and employees to be responsible for
their own security and the security of others.
(E) A description of programs designed to inform
students and employees about the prevention of crimes.
(F) Statistics concerning the occurrence on campus,
in or on noncampus buildings or property, and on public
property during the most recent calendar year, and
during the 2 preceding calendar years for which data
are available--
(i) of the following criminal offenses
reported to campus security authorities or
local police agencies:
(I) murder;
(II) sex offenses, forcible or
nonforcible;
(III) robbery;
(IV) aggravated assault;
(V) burglary;
(VI) motor vehicle theft;
(VII) manslaughter;
(VIII) arson;
(IX) arrests or persons referred for
campus disciplinary action for liquor
law violations, drug-related
violations, and weapons possession; and
(ii) of the crimes described in subclauses
(I) through (VIII) of clause (i), of larceny-
theft, simple assault, intimidation, and
destruction, damage, or vandalism of property,
and of other crimes involving bodily injury to
any person, in which the victim is
intentionally selected because of the actual or
perceived race, gender, religion, national
origin, sexual orientation, gender identity,,
ethnicity, or disability of the victim that are
reported to campus security authorities or
local police agencies, which data shall be
collected and reported according to category of
prejudice; and
(iii) of domestic violence, dating violence,
and stalking incidents that were reported to
campus security authorities or local police
agencies.
(G) A statement of policy concerning the monitoring
and recording through local police agencies of criminal
activity at off-campus student organizations which are
recognized by the institution and that are engaged in
by students attending the institution, including those
student organizations with off-campus housing
facilities.
(H) A statement of policy regarding the possession,
use, and sale of alcoholic beverages and enforcement of
State underage drinking laws and a statement of policy
regarding the possession, use, and sale of illegal
drugs and enforcement of Federal and State drug laws
and a description of any drug or alcohol abuse
education programs as required under [section 120]
section 118 of this Act.
(I) A statement advising the campus community where
law enforcement agency information provided by a State
under section 170101(j) of the Violent Crime Control
and Law Enforcement Act of 1994 (42 U.S.C. 14071(j)),
concerning registered sex offenders may be obtained,
such as the law enforcement office of the institution,
a local law enforcement agency with jurisdiction for
the campus, or a computer network address.
(J) A statement of current campus policies
regarding immediate emergency response and
evacuation procedures, including the use of
electronic and cellular communication (if
appropriate), which policies shall include
procedures to--
(i) immediately notify the campus
community upon the confirmation of a
significant emergency or dangerous
situation involving an immediate threat
to the health or safety of students or
staff occurring on the campus, as
defined in paragraph (6), unless
issuing a notification will compromise
efforts to contain the emergency;
(ii) publicize emergency response and
evacuation procedures on an annual
basis in a manner designed to reach
students and staff; and
(iii) test emergency response and
evacuation procedures on an annual
basis.
(2) Nothing in this subsection shall be construed to
authorize the Secretary to require particular policies,
procedures, or practices by institutions of higher education
with respect to campus crimes or campus security.
[(3) Each institution participating in any program under this
title, other than a foreign institution of higher education,
shall make timely reports to the campus community on crimes
considered to be a threat to other students and employees
described in paragraph (1)(F) that are reported to campus
security or local law police agencies. Such reports shall be
provided to students and employees in a manner that is timely,
that withholds the names of victims as confidential, and that
will aid in the prevention of similar occurrences.]
(3) Each institution participating in any program
under this title, other than a foreign institution of
higher education, shall make timely reports to the
campus community on crimes described in paragraph
(1)(F) that have been reported to campus security
officials and pose a serious and continuing threat to
other students and employees' safety. Such reports
shall withhold the names of victims as confidential and
shall be provided in a timely manner, except that an
institution may delay issuing a report if the issuance
would compromise ongoing law enforcement efforts, such
as efforts to apprehend a suspect. The report shall
also include information designed to assist students
and employees in staying safe and avoiding similar
occurrences to the extent such information is available
and appropriate to include. In assessing institutional
compliance with this section, the Secretary shall defer
to the institution's determination of whether a
particular crime poses a serious and continuing threat
to the campus community, and the timeliness of such
warning, provided that, in making its decision, the
institution acted reasonably and based on the
considered professional judgement of campus security
officials, based on the facts and circumstances known
at the time.
(4)(A) Each institution participating in any program under
this title, other than a foreign institution of higher
education, that maintains a police or security department of
any kind shall make, keep, and maintain a daily log, written in
a form that can be easily understood, recording all crimes
reported to such police or security department, including--
(i) the nature, date, time, and general location of
each crime; and
(ii) the disposition of the complaint, if known.
(B)(i) All entries that are required pursuant to this
paragraph shall, except where disclosure of such information is
prohibited by law or such disclosure would jeopardize the
confidentiality of the victim, be open to public inspection
within two business days of the initial report being made to
the department or a campus security authority.
(ii) If new information about an entry into a log becomes
available to a police or security department, then the new
information shall be recorded in the log not later than two
business days after the information becomes available to the
police or security department.
(iii) If there is clear and convincing evidence that the
release of such information would jeopardize an ongoing
criminal investigation or the safety of an individual, cause a
suspect to flee or evade detection, or result in the
destruction of evidence, such information may be withheld until
that damage is no longer likely to occur from the release of
such information.
(5) On an annual basis, each institution participating in any
program under this title, other than a foreign institution of
higher education, shall submit to the Secretary a copy of the
statistics required to be made available under paragraph
(1)(F). The Secretary shall--
(A) review such statistics and report to the
authorizing committees on campus crime statistics by
September 1, 2000;
(B) make copies of the statistics submitted to the
Secretary available to the public; and
(C) in coordination with representatives of
institutions of higher education, identify exemplary
campus security policies, procedures, and practices and
disseminate information concerning those policies,
procedures, and practices that have proven effective in
the reduction of campus crime.
(6)(A) In this subsection:
(i) The terms ``dating violence'', ``domestic
violence'', and ``stalking'' have the meaning given
such terms in section 40002(a) of the Violence Against
Women Act of 1994 (42 U.S.C. 13925(a)).
(ii) The term ``campus'' means--
(I) any building or property owned or
controlled by an institution of higher
education within the same reasonably contiguous
geographic area of the institution and used by
the institution in direct support of, or in a
manner related to, the institution's
educational purposes, including residence
halls; and
(II) property within the same reasonably
contiguous geographic area of the institution
that is owned by the institution but controlled
by another person, is used by students, and
supports institutional purposes (such as a food
or other retail vendor).
(iii) The term ``noncampus building or property''
means--
(I) any building or property owned or
controlled by a student organization recognized
by the institution; and
(II) any building or property (other than a
branch campus) owned or controlled by an
institution of higher education that is used in
direct support of, or in relation to, the
institution's educational purposes, is used by
students, and is not within the same reasonably
contiguous geographic area of the institution.
(iv) The term ``public property'' means all public
property that is within the same reasonably contiguous
geographic area of the institution, such as a sidewalk,
a street, other thoroughfare, or parking facility, and
is adjacent to a facility owned or controlled by the
institution if the facility is used by the institution
in direct support of, or in a manner related to the
institution's educational purposes.
(v) The term ``sexual assault'' means an offense
classified as a forcible or nonforcible sex offense
under the uniform crime reporting system of the Federal
Bureau of Investigation.
(B) In cases where branch campuses of an institution of
higher education, schools within an institution of higher
education, or administrative divisions within an institution
are not within a reasonably contiguous geographic area, such
entities shall be considered separate campuses for purposes of
the reporting requirements of this section.
(7) The statistics described in clauses (i) and (ii) of
paragraph (1)(F) shall be compiled in accordance with the
definitions used in the uniform crime reporting system of the
Department of Justice, Federal Bureau of Investigation, and the
modifications in such definitions as implemented pursuant to
the Hate Crime Statistics Act. For the offenses of domestic
violence, dating violence, and stalking, such statistics shall
be compiled in accordance with the definitions used in section
40002(a) of the Violence Against Women Act of 1994 (42 U.S.C.
13925(a)). Such statistics shall not identify victims of crimes
or persons accused of crimes.
(8)(A) Each institution of higher education participating in
any program under this title and title IV of the Economic
Opportunity Act of 1964, other than a foreign institution of
higher education, shall develop and distribute as part of the
report described in paragraph (1) a statement of policy
regarding--
(i) such institution's programs to prevent domestic
violence, dating violence, sexual assault, and
stalking; and
(ii) the procedures that such institution will follow
once an incident of domestic violence, dating violence,
sexual assault, or stalking has been reported,
including a statement of the standard of evidence that
will be used during any institutional conduct
proceeding arising from such a report.
(B) The policy described in subparagraph (A) shall address
the following areas:
(i) Education programs to promote the awareness of
rape, acquaintance rape, domestic violence, dating
violence, sexual assault, and stalking, which shall
include--
(I) primary prevention and awareness programs
for all incoming students and new employees,
which shall include--
(aa) a statement that the institution
of higher education prohibits the
offenses of domestic violence, dating
violence, sexual assault, and stalking;
(bb) the definition of domestic
violence, dating violence, sexual
assault, and stalking in the applicable
jurisdiction;
(cc) the definition of consent, in
reference to sexual activity, in the
applicable jurisdiction;
(dd) safe and positive options for
bystander intervention that may be
carried out by an individual to prevent
harm or intervene when there is a risk
of domestic violence, dating violence,
sexual assault, or stalking against a
person other than such individual;
(ee) information on risk reduction to
recognize warning signs of abusive
behavior and how to avoid potential
attacks; and
(ff) the information described in
clauses (ii) through (vii); and
(II) ongoing prevention and awareness
campaigns for students and faculty, including
information described in items (aa) through
(ff) of subclause (I).
(ii) Possible sanctions or protective measures that
such institution may impose following a final
determination of an institutional disciplinary
procedure regarding rape, acquaintance rape, domestic
violence, dating violence, sexual assault, or stalking.
(iii) Procedures victims should follow if a sex
offense, domestic violence, dating violence, sexual
assault, or stalking has occurred, including
information in writing about--
(I) the importance of preserving evidence as
may be necessary to the proof of criminal
domestic violence, dating violence, sexual
assault, or stalking, or in obtaining a
protection order;
(II) to whom the alleged offense should be
reported;
(III) options regarding law enforcement and
campus authorities, including notification of
the victim's option to--
(aa) notify proper law enforcement
authorities, including on-campus and
local police;
(bb) be assisted by campus
authorities in notifying law
enforcement authorities if the victim
so chooses; and
(cc) decline to notify such
authorities; and
(IV) where applicable, the rights of victims
and the institution's responsibilities
regarding orders of protection, no contact
orders, restraining orders, or similar lawful
orders issued by a criminal, civil, or tribal
court.
(iv) Procedures for institutional disciplinary action
in cases of alleged domestic violence, dating violence,
sexual assault, or stalking, which shall include a
clear statement that--
[(I) such proceedings shall--
[(aa) provide a prompt, fair, and
impartial investigation and resolution;
and
[(bb) be conducted by officials who
receive annual training on the issues
related to domestic violence, dating
violence, sexual assault, and stalking
and how to conduct an investigation and
hearing process that protects the
safety of victims and promotes
accountability;]
(I) the investigation of the
allegation and any institutional
disciplinary proceeding in response to
the allegation shall be prompt,
impartial, and fair to both the accuser
and the accused by, at a minimum--
(aa) providing all parties to
the proceeding with adequate
written notice of the
allegation not later than 2
weeks prior to the start of any
formal hearing or similar
adjudicatory proceeding, and
including in such notice a
description of all rights and
responsibilities under the
proceeding, a statement of all
relevant details of the
allegation, and a specific
statement of the sanctions
which may be imposed;
(bb) providing each person
against whom the allegation is
made with a meaningful
opportunity to admit or contest
the allegation;
(cc) ensuring that all
parties to the proceeding have
access to all material evidence
not later than one week prior
to the start of any formal
hearing or similar adjudicatory
proceeding;
(dd) ensuring that the
proceeding is carried out free
from conflicts of interest by
ensuring that there is no
commingling of administrative
or adjudicative roles; and
(ee) ensuring that the
investigation and proceeding
shall be conducted by officials
who receive annual education on
issues related to domestic
violence, dating violence,
sexual assault, and stalking,
and on how to conduct an
investigation and an
institutional disciplinary
proceeding that protects the
safety of victims, ensures
fairness for both the accuser
and the accused, and promotes
accountability;
(II) the accuser and the accused are entitled
to the same opportunities to have others
present during an institutional disciplinary
proceeding, including the opportunity to be
accompanied to any related meeting or
proceeding by an advisor of their choice; [and]
(III) both the accuser and the accused shall
be simultaneously informed, in writing, of--
(aa) the outcome of any institutional
disciplinary proceeding that arises
from an allegation of domestic
violence, dating violence, sexual
assault, or stalking;
(bb) the institution's procedures for
the accused and the victim to appeal
the results of the institutional
disciplinary proceeding;
(cc) of any change to the results
that occurs prior to the time that such
results become final; and
(dd) when such results become
final[.]; and
(IV) in the case of a proceeding involving an
allegation of sexual assault, such proceedings
shall be conducted in accordance with the
standard of evidence established by the
institution under clause (viii), together with
a clear statement describing such standard of
evidence.
(v) Information about how the institution will
protect the confidentiality of victims, including how
publicly-available recordkeeping will be accomplished
without the inclusion of identifying information about
the victim, to the extent permissible by law.
(vi) Written notification of students and employees
about existing counseling, health, mental health,
victim advocacy, legal assistance, and other services
available for victims both on-campus and in the
community.
(vii) Written notification of victims about options
for, and available assistance in, changing academic,
living, transportation, and working situations, if so
requested by the victim and if such accommodations are
reasonably available, regardless of whether the victim
chooses to report the crime to campus police or local
law enforcement.
(viii) The establishment of a standard of evidence
that will be used in institutional disciplinary
proceedings involving allegations of sexual assault,
which may be based on such standards and criteria as
the institution considers appropriate (including the
institution's culture, history, and mission, the values
reflected in its student code of conduct, and the
purpose of the institutional disciplinary proceedings)
so long as the standard is not arbitrary or capricious
and is applied consistently throughout all such
proceedings.
(C) A student or employee who reports to an institution of
higher education that the student or employee has been a victim
of domestic violence, dating violence, sexual assault, or
stalking, whether the offense occurred on or off campus, shall
be provided with a written explanation of the student or
employee's rights and options, as described in clauses (ii)
through (vii) of subparagraph (B).
(D) In consultation with experts from institutions of higher
education, law enforcement agencies, advocates for sexual
assault victims, experts in due process, and other appropriate
persons, the Secretary shall create and regularly update
modules which an institution of higher education may use to
provide the annual education described in subparagraph
(B)(iv)(I)(ee) for officials conducting investigations and
institutional disciplinary proceedings involving allegations
described in such subparagraph. If the institution uses such
modules to provide the education described in such
subparagraph, the institution shall be considered to meet any
requirement under such subparagraph or any other Federal law
regarding the education provided to officials conducting such
investigations and proceedings.
(9) The Secretary, in consultation with the Attorney General
of the United States, shall provide technical assistance in
complying with the provisions of this section to an institution
of higher education who requests such assistance.
(10) Nothing in this section shall be construed to require
the reporting or disclosure of privileged information.
(11) The Secretary shall report to the appropriate committees
of Congress each institution of higher education that the
Secretary determines is not in compliance with the reporting
requirements of this subsection.
(12) For purposes of reporting the statistics with respect to
crimes described in paragraph (1)(F), an institution of higher
education shall distinguish, by means of separate categories,
any criminal offenses that occur--
(A) on campus;
(B) in or on a noncampus building or property;
(C) on public property; and
(D) in dormitories or other residential facilities
for students on campus.
(13) Upon a determination pursuant to section 487(c)(3)(B)
that an institution of higher education has substantially
misrepresented the number, location, or nature of the crimes
required to be reported under this subsection, the Secretary
shall impose a civil penalty upon the institution in the same
amount and pursuant to the same procedures as a civil penalty
is imposed under section 487(c)(3)(B).
(14)(A) Nothing in this subsection may be construed to--
(i) create a cause of action against any institution
of higher education or any employee of such an
institution for any civil liability; or
(ii) establish any standard of care.
(B) Notwithstanding any other provision of law, evidence
regarding compliance or noncompliance with this subsection
shall not be admissible as evidence in any proceeding of any
court, agency, board, or other entity, except with respect to
an action to enforce this subsection.
(15) The Secretary shall annually report to the
authorizing committees regarding compliance with this
subsection by institutions of higher education,
including an up-to-date report on the Secretary's
monitoring of such compliance.
(16)(A) The Secretary shall seek the advice and counsel of
the Attorney General of the United States concerning the
development, and dissemination to institutions of higher
education, of best practices information about campus safety
and emergencies.
(B) The Secretary shall seek the advice and counsel of the
Attorney General of the United States and the Secretary of
Health and Human Services concerning the development, and
dissemination to institutions of higher education, of best
practices information about preventing and responding to
incidents of domestic violence, dating violence, sexual
assault, and stalking, including elements of institutional
policies that have proven successful based on evidence-based
outcome measurements.
(17) No officer, employee, or agent of an institution
participating in any program under this title shall retaliate,
intimidate, threaten, coerce, or otherwise discriminate against
any individual for exercising their rights or responsibilities
under any provision of this subsection.
(18) Nothing in this subsection may be construed to prohibit
an institution of higher education from delaying the initiation
of, or suspending, an investigation or institutional
disciplinary proceeding involving an allegation of sexual
assault in response to a request from a law enforcement agency
or a prosecutor to delay the initiation of, or suspend, the
investigation or proceeding, and any delay or suspension of
such an investigation or proceeding in response to such a
request may not serve as the grounds for any sanction or audit
finding against the institution or for the suspension or
termination of the institution's participation in any program
under this title.
(19)(A) Reporting carried out under this subsection shall be
conducted in a manner to ensure maximum consistency with the
Uniform Crime Reporting Program of the Department of Justice.
(B) The Secretary shall require institutions of higher
education to report crime statistics under this section using
definitions of such crimes, when available, from the Uniform
Crime Reporting Program of the Department of Justice.
(C) The Secretary shall maintain a publicly available and
updated list of all applicable definitions from the Uniform
Crime Reporting Program of the Department of Justice.
(D) With respect to a report under this subsection, in the
case of a crime for which no Uniform Crime Reporting Program of
the Department of Justice definition exists, the Secretary
shall require that institutions of higher education report such
crime according to a definition provided by the Secretary.
(E) An institution of higher education that reports a crime
described in subparagraph (D) shall not be subject to any
penalty or fine for reporting inaccuracies or omissions if the
institution of higher education can demonstrate that it made a
reasonable and good faith effort to report crimes consistent
with the definition provided by the Secretary.
(F) With respect to a report under this subsection, the
Secretary shall require institutions of higher education to
follow the Hierarchy Rule for reporting crimes under the
Uniform Crime Reporting Program of the Department of Justice,
so as to minimize duplicate reporting and ensure greater
consistency with national crime reporting systems.
[(18)] (20) This subsection may be cited as the ``Jeanne
Clery Disclosure of Campus Security Policy and Campus Crime
Statistics Act''.
(g) Data Required.--
(1) In general.--Each coeducational institution of
higher education that participates in any program under
this title, and has an intercollegiate athletic
program, shall annually, for the immediately preceding
academic year, prepare a report that contains the
following information regarding intercollegiate
athletics:
(A) The number of male and female full-time
undergraduates that attended the institution.
(B) A listing of the varsity teams that
competed in intercollegiate athletic
competition and for each such team the
following data:
(i) The total number of participants,
by team, as of the day of the first
scheduled contest for the team.
(ii) Total operating expenses
attributable to such teams, except that
an institution may also report such
expenses on a per capita basis for each
team and expenditures attributable to
closely related teams such as track and
field or swimming and diving, may be
reported together, although such
combinations shall be reported
separately for men's and women's teams.
(iii) Whether the head coach is male
or female and whether the head coach is
assigned to that team on a full-time or
part-time basis. Graduate assistants
and volunteers who serve as head
coaches shall be considered to be head
coaches for the purposes of this
clause.
(iv) The number of assistant coaches
who are male and the number of
assistant coaches who are female for
each team and whether a particular
coach is assigned to that team on a
full-time or part-time basis. Graduate
assistants and volunteers who serve as
assistant coaches shall be considered
to be assistant coaches for the
purposes of this clause.
(C) The total amount of money spent on
athletically related student aid, including the
value of waivers of educational expenses,
separately for men's and women's teams overall.
(D) The ratio of athletically related student
aid awarded male athletes to athletically
related student aid awarded female athletes.
(E) The total amount of expenditures on
recruiting, separately for men's and women's
teams overall.
(F) The total annual revenues generated
across all men's teams and across all women's
teams, except that an institution may also
report such revenues by individual team.
(G) The average annual institutional salary
of the head coaches of men's teams, across all
offered sports, and the average annual
institutional salary of the head coaches of
women's teams, across all offered sports.
(H) The average annual institutional salary
of the assistant coaches of men's teams, across
all offered sports, and the average annual
institutional salary of the assistant coaches
of women's teams, across all offered sports.
(I)(i) The total revenues, and the revenues
from football, men's basketball, women's
basketball, all other men's sports combined and
all other women's sports combined, derived by
the institution from the institution's
intercollegiate athletics activities.
(ii) For the purpose of clause (i), revenues
from intercollegiate athletics activities
allocable to a sport shall include (without
limitation) gate receipts, broadcast revenues,
appearance guarantees and options, concessions,
and advertising, but revenues such as student
activities fees or alumni contributions not so
allocable shall be included in the calculation
of total revenues only.
(J)(i) The total expenses, and the expenses
attributable to football, men's basketball,
women's basketball, all other men's sports
combined, and all other women's sports
combined, made by the institution for the
institution's intercollegiate athletics
activities.
(ii) For the purpose of clause (i), expenses
for intercollegiate athletics activities
allocable to a sport shall include (without
limitation) grants-in-aid, salaries, travel,
equipment, and supplies, but expenses such as
general and administrative overhead not so
allocable shall be included in the calculation
of total expenses only.
(2) Special rule.--For the purposes of paragraph
(1)(G), if a coach has responsibilities for more than
one team and the institution does not allocate such
coach's salary by team, the institution should divide
the salary by the number of teams for which the coach
has responsibility and allocate the salary among the
teams on a basis consistent with the coach's
responsibilities for the different teams.
(3) Disclosure of information to students and
public.--An institution of higher education described
in paragraph (1) shall make available to students and
potential students, upon request, and to the public,
the information contained in the report described in
paragraph (1), except that all students shall be
informed of their right to request such information.
(4) Submission; report; information availability.--
(A) On an annual basis, each institution of higher
education described in paragraph (1) shall provide to
the Secretary, within 15 days of the date that the
institution makes available the report under paragraph
(1), the information contained in the report.
(B) The Secretary shall ensure that the reports
described in subparagraph (A) are made available to the
public within a reasonable period of time.
(C) Not later than 180 days after the date of
enactment of the Higher Education Amendments of 1998,
the Secretary shall notify all secondary schools in all
States regarding the availability of the information
made available under paragraph (1), and how such
information may be accessed.
(5) Definition.--For the purposes of this subsection,
the term ``operating expenses'' means expenditures on
lodging and meals, transportation, officials, uniforms
and equipment.
(h) Transfer of Credit Policies.--
(1) Disclosure.--Each institution of higher education
participating in any program under this title shall
publicly disclose, in a readable and comprehensible
manner, the transfer of credit policies established by
the institution which shall include a statement of the
institution's current transfer of credit policies that
includes, at a minimum--
(A) any established criteria the institution
uses regarding the transfer of credit earned at
another institution of higher education; and
(B) a list of institutions of higher
education with which the institution has
established an articulation agreement.
(2) Rule of construction.--Nothing in this subsection
shall be construed to--
(A) authorize the Secretary or the National
Advisory Committee on Institutional Quality and
Integrity to require particular policies,
procedures, or practices by institutions of
higher education with respect to transfer of
credit;
(B) authorize an officer or employee of the
Department to exercise any direction,
supervision, or control over the curriculum,
program of instruction, administration, or
personnel of any institution of higher
education, or over any accrediting agency or
association;
(C) limit the application of the General
Education Provisions Act; or
(D) create any legally enforceable right on
the part of a student to require an institution
of higher education to accept a transfer of
credit from another institution.
[(i) Disclosure of Fire Safety Standards and Measures.--
[(1) Annual fire safety reports on student housing
required.--Each eligible institution participating in
any program under this title that maintains on-campus
student housing facilities shall, on an annual basis,
publish a fire safety report, which shall contain
information with respect to the campus fire safety
practices and standards of that institution,
including--
[(A) statistics concerning the following in
each on-campus student housing facility during
the most recent calendar years for which data
are available:
[(i) the number of fires and the
cause of each fire;
[(ii) the number of injuries related
to a fire that result in treatment at a
medical facility;
[(iii) the number of deaths related
to a fire; and
[(iv) the value of property damage
caused by a fire;
[(B) a description of each on-campus student
housing facility fire safety system, including
the fire sprinkler system;
[(C) the number of regular mandatory
supervised fire drills;
[(D) policies or rules on portable electrical
appliances, smoking, and open flames (such as
candles), procedures for evacuation, and
policies regarding fire safety education and
training programs provided to students,
faculty, and staff; and
[(E) plans for future improvements in fire
safety, if determined necessary by such
institution.
[(2) Report to the secretary.--Each institution
described in paragraph (1) shall, on an annual basis,
submit to the Secretary a copy of the statistics
required to be made available under paragraph (1)(A).
[(3) Current information to campus community.--Each
institution described in paragraph (1) shall--
[(A) make, keep, and maintain a log,
recording all fires in on-campus student
housing facilities, including the nature, date,
time, and general location of each fire; and
[(B) make annual reports to the campus
community on such fires.
[(4) Responsibilities of the secretary.--The
Secretary shall--
[(A) make the statistics submitted under
paragraph (1)(A) to the Secretary available to
the public; and
[(B) in coordination with nationally
recognized fire organizations and
representatives of institutions of higher
education, representatives of associations of
institutions of higher education, and other
organizations that represent and house a
significant number of students--
[(i) identify exemplary fire safety
policies, procedures, programs, and
practices, including the installation,
to the technical standards of the
National Fire Protection Association,
of fire detection, prevention, and
protection technologies in student
housing, dormitories, and other
buildings;
[(ii) disseminate the exemplary
policies, procedures, programs and
practices described in clause (i) to
the Administrator of the United States
Fire Administration;
[(iii) make available to the public
information concerning those policies,
procedures, programs, and practices
that have proven effective in the
reduction of fires; and
[(iv) develop a protocol for
institutions to review the status of
their fire safety systems.
[(5) Rules of construction.--Nothing in this
subsection shall be construed to--
[(A) authorize the Secretary to require
particular policies, procedures, programs, or
practices by institutions of higher education
with respect to fire safety, other than with
respect to the collection, reporting, and
dissemination of information required by this
subsection;
[(B) affect section 444 of the General
Education Provisions Act (commonly known as the
``Family Educational Rights and Privacy Act of
1974'') or the regulations issued under section
264 of the Health Insurance Portability and
Accountability Act of 1996 (42 U.S.C. 1320d-2
note);
[(C) create a cause of action against any
institution of higher education or any employee
of such an institution for any civil liability;
or
[(D) establish any standard of care.
[(6) Compliance report.--The Secretary shall annually
report to the authorizing committees regarding
compliance with this subsection by institutions of
higher education, including an up-to-date report on the
Secretary's monitoring of such compliance.
[(7) Evidence.--Notwithstanding any other provision
of law, evidence regarding compliance or noncompliance
with this subsection shall not be admissible as
evidence in any proceeding of any court, agency, board,
or other entity, except with respect to an action to
enforce this subsection.]
(i) Fire Safety Reports.--
(1) Annual report.--Each eligible institution
participating in any program under this title that
maintains on-campus student housing facilities shall,
on an annual basis, publish a fire safety report, which
shall contain information with respect to the campus
fire safety practices and standards of that
institution, statistics on any fire related incidents
or injuries, and any preventative measures or
technologies.
(2) Rules of construction.--Nothing in this
subsection shall be construed to--
(A) authorize the Secretary to require
particular policies, procedures, programs, or
practices by institutions of higher education
with respect to fire safety;
(B) affect section 444 of the General
Education Provisions Act (commonly known as the
``Family Education Rights and Privacy Act of
1974'') or the regulations issued under section
264 of the Health Insurance Portability and
Accountability Act of 1996 (42 U.S.C. 1320d-2
note);
(C) create a cause of action against any
institution of higher education or any employee
of such an institution for any civil liability;
or
(D) establish any standard of care.
(3) Evidence.--Notwithstanding any other provision of
law, evidence regarding compliance or noncompliance
with this subsection shall not be admissible as
evidence in any proceeding of any court, agency, board,
or other entity, except with respect to an action to
enforce this subsection.
(j) Missing Person Procedures.--
[(1) Option and procedures.--Each institution of
higher education that provides on-campus housing and
participates in any program under this title shall--
[(A) establish a missing student notification
policy for students who reside in on-campus
housing that--
[(i) informs each such student that
such student has the option to identify
an individual to be contacted by the
institution not later than 24 hours
after the time that the student is
determined missing in accordance with
official notification procedures
established by the institution under
subparagraph (B);
[(ii) provides each such student a
means to register confidential contact
information in the event that the
student is determined to be missing for
a period of more than 24 hours;
[(iii) advises each such student who
is under 18 years of age, and not an
emancipated individual, that the
institution is required to notify a
custodial parent or guardian not later
24 hours after the time that the
student is determined to be missing in
accordance with such procedures;
[(iv) informs each such residing
student that the institution will
notify the appropriate law enforcement
agency not later than 24 hours after
the time that the student is determined
missing in accordance with such
procedures; and
[(v) requires, if the campus security
or law enforcement personnel has been
notified and makes a determination that
a student who is the subject of a
missing person report has been missing
for more than 24 hours and has not
returned to the campus, the institution
to initiate the emergency contact
procedures in accordance with the
student's designation; and
[(B) establish official notification
procedures for a missing student who resides in
on-campus housing that--
[(i) includes procedures for official
notification of appropriate individuals
at the institution that such student
has been missing for more than 24
hours;
[(ii) requires any official missing
person report relating to such student
be referred immediately to the
institution's police or campus security
department; and
[(iii) if, on investigation of the
official report, such department
determines that the missing student has
been missing for more than 24 hours,
requires--
[(I) such department to
contact the individual
identified by such student
under subparagraph (A)(i);
[(II) if such student is
under 18 years of age, and not
an emancipated individual, the
institution to immediately
contact the custodial parent or
legal guardian of such student;
and
[(III) if subclauses (I) or
(II) do not apply to a student
determined to be a missing
person, inform the appropriate
law enforcement agency.]
(1) In general.--Each institution of higher education
that provides on-campus housing and participates in any
program under this title shall establish a missing
student policy for students who reside in on-campus
housing that, at a minimum, informs each residing
student that the institution will notify such student's
designated emergency contact and the appropriate law
enforcement agency not later than 24 hours after the
time that the student is determined missing, and in the
case of a student who is under 18 years of age, the
institution will notify a custodial parent or guardian.
(2) Rule of construction.--Nothing in this subsection
shall be construed--
(A) to provide a private right of action to
any person to enforce any provision of this
subsection; [or]
(B) to create a cause of action against any
institution of higher education or any employee
of the institution for any civil liability[.];
or
(C) to require an institution of higher
education to maintain separate missing student
emergency contact information, so long as the
institution otherwise has an emergency contact
for students residing on campus.
(k) Notice to Students Concerning Penalties for Drug
Violations.--
(1) Notice upon enrollment.--Each institution of
higher education shall provide to each student, upon
enrollment, a separate, clear, and conspicuous written
notice that advises the student of the penalties under
section 484(r).
(2) Notice after loss of eligibility.--An institution
of higher education shall provide in a timely manner to
each student who has lost eligibility for any grant,
loan, or work-study assistance under this title as a
result of the penalties listed under section 484(r)(1)
a separate, clear, and conspicuous written notice that
notifies the student of the loss of eligibility and
advises the student of the ways in which the student
can regain eligibility under section 484(r)(2).
[(l) Entrance Counseling for Borrowers.--
[(1) Disclosure required prior to disbursement.--
[(A) In general.--Each eligible institution
shall, at or prior to the time of a
disbursement to a first-time borrower of a loan
made, insured, or guaranteed under part B
(other than a loan made pursuant to section
428C or a loan made on behalf of a student
pursuant to section 428B) or made under part D
(other than a Federal Direct Consolidation Loan
or a Federal Direct PLUS loan made on behalf of
a student), ensure that the borrower receives
comprehensive information on the terms and
conditions of the loan and of the
responsibilities the borrower has with respect
to such loan in accordance with paragraph (2).
Such information--
[(i) shall be provided in a simple
and understandable manner; and
[(ii) may be provided--
[(I) during an entrance
counseling session conduction
in person;
[(II) on a separate written
form provided to the borrower
that the borrower signs and
returns to the institution; or
[(III) online, with the
borrower acknowledging receipt
of the information.
[(B) Use of interactive programs.--The
Secretary shall encourage institutions to carry
out the requirements of subparagraph (A)
through the use of interactive programs that
test the borrower's understanding of the terms
and conditions of the borrower's loans under
part B or D, using simple and understandable
language and clear formatting.
[(2) Information to be provided.--The information to
be provided to the borrower under paragraph (1)(A)
shall include the following:
[(A) To the extent practicable, the effect of
accepting the loan to be disbursed on the
eligibility of the borrower for other forms of
student financial assistance.
[(B) An explanation of the use of the master
promissory note.
[(C) Information on how interest accrues and
is capitalized during periods when the interest
is not paid by either the borrower or the
Secretary.
[(D) In the case of a loan made under section
428B or 428H, a Federal Direct PLUS Loan, or a
Federal Direct Unsubsidized Stafford Loan, the
option of the borrower to pay the interest
while the borrower is in school.
[(E) The definition of half-time enrollment
at the institution, during regular terms and
summer school, if applicable, and the
consequences of not maintaining half-time
enrollment.
[(F) An explanation of the importance of
contacting the appropriate offices at the
institution of higher education if the borrower
withdraws prior to completing the borrower's
program of study so that the institution can
provide exit counseling, including information
regarding the borrower's repayment options and
loan consolidation.
[(G) Sample monthly repayment amounts based
on--
[(i) a range of levels of
indebtedness of--
[(I) borrowers of loans under
section 428 or 428H; and
[(II) as appropriate,
graduate borrowers of loans
under section 428, 428B, or
428H; or
[(ii) the average cumulative
indebtedness of other borrowers in the
same program as the borrower at the
same institution.
[(H) The obligation of the borrower to repay
the full amount of the loan, regardless of
whether the borrower completes or does not
complete the program in which the borrower is
enrolled within the regular time for program
completion.
[(I) The likely consequences of default on
the loan, including adverse credit reports,
delinquent debt collection procedures under
Federal law, and litigation.
[(J) Information on the National Student Loan
Data System and how the borrower can access the
borrower's records.
[(K) The name of and contact information for
the individual the borrower may contact if the
borrower has any questions about the borrower's
rights and responsibilities or the terms and
conditions of the loan.]
(l) Annual Financial Aid Counseling.--
(1) Annual disclosure required.--
(A) In general.--Each eligible institution
shall ensure, and annually affirm to the
Secretary, that each individual enrolled at
such institution who receives a Federal Pell
Grant or a loan made under this title (other
than a Federal Direct Consolidation Loan or
Federal ONE Consolidation Loan) receives
comprehensive information on the terms and
conditions of such Federal Pell Grant or loan
and the responsibilities the individual has
with respect to such Federal Pell Grant or
loan. Such information shall be provided, for
each award year for which the individual
receives such Federal Pell Grant or loan, in a
simple and understandable manner--
(i) during a counseling session
conducted in person;
(ii) online, with the individual
acknowledging receipt of the
information; or
(iii) through the use of the online
counseling tool described in subsection
(n)(1)(B).
(B) Use of interactive programs.--In the case
of institutions not using the online counseling
tool described in subsection (n)(1)(B), the
Secretary shall require such institutions to
carry out the requirements of subparagraph
(A)--
(i) through the use of interactive
programs;
(ii) during an annual counseling
session that is in-person or online
that tests the individual's
understanding of the terms and
conditions of the Federal Pell Grant or
loan awarded to the student; and
(iii) using simple and understandable
language and clear formatting.
(2) All individuals.--The information to be provided
under paragraph (1) to each individual receiving
counseling under this subsection shall include the
following:
(A) An explanation of how the student may
budget for typical educational expenses and a
sample budget based on the cost of attendance
for the institution.
(B) An explanation that an individual has a
right to annually request a disclosure of
information collected by a consumer reporting
agency pursuant to section 612(a) of the Fair
Credit Reporting Act (15 U.S.C. 1681j(a)).
(C) Based on the most recent data available
from the American Community Survey available
from the Department of Commerce, the estimated
average income and percentage of employment in
the State of domicile of the borrower for
persons with--
(i) a high school diploma or
equivalent;
(ii) some post-secondary education
without completion of a degree or
certificate;
(iii) an associate's degree;
(iv) a bachelor's degree; and
(v) a graduate or professional
degree.
(D) An introduction to the financial
management resources provided by the Financial
Literacy and Education Commission.
(3) Students receiving federal pell grants.--The
information to be provided under paragraph (1) to each
student receiving a Federal Pell Grant shall include
the following:
(A) An explanation of the terms and
conditions of the Federal Pell Grant.
(B) An explanation of approved educational
expenses for which the student may use the
Federal Pell Grant.
(C) An explanation of why the student may
have to repay the Federal Pell Grant.
(D) An explanation of the maximum number of
semesters or equivalent for which the student
may be eligible to receive a Federal Pell
Grant, and a statement of the amount of time
remaining for which the student may be eligible
to receive a Federal Pell Grant.
(E) An explanation that if the student
transfers to another institution not all of the
student's courses may be acceptable to apply
toward meeting specific degree or program
requirements at such institution, but the
amount of time remaining for which a student
may be eligible to receive a Federal Pell
Grant, as provided under subparagraph (D), will
not change.
(F) An explanation of how the student may
seek additional financial assistance from the
institution's financial aid office due to a
change in the student's financial
circumstances, and the contact information for
such office.
(4) Borrowers receiving loans made this title (other
than federal direct plus loans made on behalf of
dependent students or federal one parent loans).--The
information to be provided under paragraph (1) to a
borrower of a loan made under this title (other than
other than a Federal Direct PLUS Loan made on behalf of
a dependent student or a Federal ONE Parent Loan) shall
include the following:
(A) To the extent practicable, the effect of
accepting the loan to be disbursed on the
eligibility of the borrower for other forms of
student financial assistance.
(B) An explanation of the use of the master
promissory note.
(C) An explanation that the borrower is not
required to accept the full amount of the loan
offered to the borrower.
(D) An explanation that the borrower should
consider accepting any grant, scholarship, or
State or Federal work-study jobs for which the
borrower is eligible prior to accepting Federal
student loans.
(E) An explanation of treatment of loans made
under this title and private education loans in
bankruptcy, and an explanation that if a
borrower decides to take out a private
education loan--
(i) the borrower has the ability to
select a private educational lender of
the borrower's choice;
(ii) the proposed private education
loan may impact the borrower's
potential eligibility for other
financial assistance, including Federal
financial assistance under this title;
and
(iii) the borrower has a right--
(I) to accept the terms of
the private education loan
within 30 calendar days
following the date on which the
application for such loan is
approved and the borrower
receives the required
disclosure documents, pursuant
to section 128(e)(6) of the
Truth in Lending Act; and
(II) to cancel such loan
within 3 business days of the
date on which the loan is
consummated, pursuant to
section 128(e)(7) of such Act.
(F) An explanation of the approved
educational expenses for which the borrower may
use a loan made under this title.
(G) Information on the annual and aggregate
loan limits for a loan made under this title.
(H) Information on interest, including the
annual percentage rate of such loan, as
calculated using the standard 10-year repayment
term, and how interest accrues and is
capitalized during periods when the interest is
not paid by the borrower.
(I) The option of the borrower to pay the
interest while the borrower is in school.
(J) The definition of half-time enrollment at
the institution, during regular terms and
summer school, if applicable, and the
consequences of not maintaining at least half-
time enrollment.
(K) An explanation of the importance of
contacting the appropriate offices at the
institution of higher education if the borrower
withdraws prior to completing the borrower's
program of study so that the institution can
provide exit counseling, including information
regarding the borrower's repayment options and
loan consolidation.
(L) For a first-time borrower or a borrower
of a loan under this title who owes no
principal or interest on such loan--
(i) a statement of the anticipated
balance on the loan for which the
borrower is receiving counseling under
this subsection;
(ii) based on such anticipated
balance, the anticipated monthly
payment amount under, at minimum--
(I) the standard repayment
plan; and
(II) an income-based
repayment plan under section
466(d) or 493C, as determined
using available percentile data
from the Bureau of Labor
Statistics of the starting
salary for the occupation in
which the borrower has an
interest in or intends to be
employed; and
(iii) an estimate of the projected
monthly payment amount under each
repayment plan described in clause
(ii), based on the average cumulative
indebtedness at graduation for
borrowers of loans made under this
title who are in the same program of
study as the borrower.
(M) For a borrower with an outstanding
balance of principal or interest due on a loan
made under this title--
(i) a current statement of the amount
of such outstanding balance and
interest accrued;
(ii) based on such outstanding
balance, the anticipated monthly
payment amount under the standard
repayment plan, and the income-based
repayment plan under section 466(d) or
493C, as determined using available
percentile data from the Bureau of
Labor Statistics of the starting salary
for the occupation the borrower intends
to be employed; and
(iii) an estimate of the projected
monthly payment amount under each
repayment plan described in clause
(ii), based on--
(I) the outstanding balance
described in clause (i);
(II) the anticipated
outstanding balance on the loan
for which the student is
receiving counseling under this
subsection; and
(III) a projection for any
other loans made under this
title that the borrower is
reasonably expected to accept
during the borrower's program
of study based on at least the
expected increase in the cost
of attendance of such program.
(N) The obligation of the borrower to repay
the full amount of the loan, regardless of
whether the borrower completes or does not
complete the program in which the borrower is
enrolled within the regular time for program
completion.
(O) The likely consequences of default on the
loan, including adverse credit reports,
delinquent debt collection procedures under
Federal law, and litigation, and a notice of
the institution's most recent loan repayment
rate (as defined in section 481B) for the
educational program in which the borrower is
enrolled, an explanation of the loan repayment
rate, and the most recent national average loan
repayment rate for an educational program.
(P) Information on the National Student Loan
Data System and how the borrower can access the
borrower's records.
(Q) The contact information for the
institution's financial aid office or other
appropriate office at the institution the
borrower may contact if the borrower has any
questions about the borrower's rights and
responsibilities or the terms and conditions of
the loan.
(5) Borrowers receiving federal direct plus loans for
dependent students or federal one parent loans.--The
information to be provided under paragraph (1) to a
borrower of a Federal Direct PLUS Loan for a dependent
student or a Federal ONE Parent Loan shall include the
following:
(A) The information described in
subparagraphs (A) through (C) and (N) through
(Q) of paragraph (4).
(B) An explanation of the treatment of the
loan and private education loans in bankruptcy.
(C) Information on the annual and aggregate
loan limits.
(D) Information on the annual percentage rate
of the loan.
(E) The option of the borrower to pay the
interest on the loan while the loan is in
deferment.
(F) For a first-time borrower of a loan or a
borrower of a loan under this title who owes no
principal or interest on such loan--
(i) a statement of the anticipated
balance on the loan for which the
borrower is receiving counseling under
this subsection;
(ii) based on such anticipated
balance, the anticipated monthly
payment amount under the standard
repayment plan; and
(iii) an estimate of the projected
monthly payment amount under the
standard repayment plan, based on the
average cumulative indebtedness of
other borrowers of loans made under
this title on behalf of dependent
students who are in the same program of
study as the student on whose behalf
the borrower borrowed the loan.
(G) For a borrower with an outstanding
balance of principal or interest due on such
loan--
(i) a statement of the amount of such
outstanding balance;
(ii) based on such outstanding
balance, the anticipated monthly
payment amount under the standard
repayment plan; and
(iii) an estimate of the projected
monthly payment amount under the
standard repayment plan, based on--
(I) the outstanding balance
described in clause (i);
(II) the anticipated
outstanding balance on the loan
for which the borrower is
receiving counseling under this
subsection; and
(III) a projection for any
other Federal Direct PLUS Loan
made on behalf of the dependent
student or Federal ONE Parent
Loan that the borrower is
reasonably expected to accept
during the program of study of
such student based on at least
the expected increase in the
cost of attendance of such
program.
(H) Debt management strategies that are
designed to facilitate the repayment of such
indebtedness.
(I) An explanation that the borrower has the
options to prepay each loan, pay each loan on a
shorter schedule, and change repayment plans.
(J) For each Federal Direct PLUS Loan and
each Federal ONE Parent Loan for which the
borrower is receiving counseling under this
subsection, the contact information for the
loan servicer of the loan and a link to such
servicer's Website.
(6) Annual loan acceptance.--Prior to making the
first disbursement of a loan made under this title
(other than a Federal Direct Consolidation Loan or
Federal ONE Consolidation Loan) to a borrower for an
award year, an eligible institution, shall, as part of
carrying out the counseling requirements of this
subsection for the loan, ensure that after receiving
the applicable counseling under paragraphs (2), (4),
and (5) for the loan the borrower accepts the loan for
such award year by--
(A) signing the master promissory note for
the loan;
(B) signing and returning to the institution
a separate written statement that affirmatively
states that the borrower accepts the loan; or
(C) electronically signing an electronic
version of the statement described in
subparagraph (B).
(7) Prohibition.--An institution of higher education
may not counsel a borrower of a loan under this title
to divorce or separate and live apart from one another
for the purpose of qualifying for, or obtaining an
increased amount of, Federal financial assistance under
this Act.
(8) Construction.--Nothing in this section shall be
construed to prohibit an eligible institution from
providing additional information and counseling
services to recipients of Federal student aid under
this title.
(m) Disclosures of Reimbursements for Service on Advisory
Boards.--
(1) Disclosure.--Each institution of higher education
participating in any program under this title shall
report, on an annual basis, to the Secretary, any
reasonable expenses paid or provided under section
140(d) of the Truth in Lending Act to any employee who
is employed in the financial aid office of the
institution, or who otherwise has responsibilities with
respect to education loans or other financial aid of
the institution. Such reports shall include--
(A) the amount for each specific instance of
reasonable expenses paid or provided;
(B) the name of the financial aid official,
other employee, or agent to whom the expenses
were paid or provided;
(C) the dates of the activity for which the
expenses were paid or provided; and
(D) a brief description of the activity for
which the expenses were paid or provided.
(2) Report to congress.--The Secretary shall
summarize the information received from institutions of
higher education under paragraph (1) in a report and
transmit such report annually to the authorizing
committees.
(n) Online Counseling Tools.--
(1) In general.--Beginning not later than 1 year
after the date of enactment of the PROSPER Act, the
Secretary shall maintain--
(A) an online counseling tool that provides
the exit counseling required under subsection
(b) and meets the applicable requirements of
this subsection; and
(B) an online counseling tool that provides
the annual counseling required under subsection
(l) and meets the applicable requirements of
this subsection.
(2) Requirements of tools.--In maintaining the online
counseling tools described in paragraph (1), the
Secretary shall ensure that each such tool is--
(A) consumer tested to ensure that the tool
is effective in helping individuals understand
their rights and obligations with respect to
borrowing a loan made this title or receiving a
Federal Pell Grant;
(B) understandable to students receiving
Federal Pell Grants and borrowers of loans made
this title; and
(C) freely available to all eligible
institutions.
(3) Record of counseling completion.--The Secretary
shall--
(A) use each online counseling tool described
in paragraph (1) to keep a record of which
individuals have received counseling using the
tool, and notify the applicable institutions of
the individual's completion of such counseling;
(B) in the case of a borrower who receives
annual counseling for a loan made under this
title using the tool described in paragraph
(1)(B), notify the borrower by when the
borrower should accept, in a manner described
in subsection (l)(6), the loan for which the
borrower has received such counseling; and
(C) in the case of a borrower described in
subsection (b)(1)(B) at an institution that
uses the online counseling tool described in
paragraph (1)(A) of this subsection, the
Secretary shall attempt to provide the
information described in subsection (b)(1)(A)
to the borrower through such tool.
(o) Preventing Hazing on Campus.--
(1) Sense of congress.--It is the Sense of Congress
that--
(A) institutions of higher education should
have clear policies that prohibit unsafe
practices, such as hazing, on campus;
(B) institutions of higher education should
ensure each student organization understands
what is considered an unsafe practice;
(C) student organizations on campus should
ensure their policies and activities do not
endanger students safety or cause harm to
students;
(D) administrators and faculty should take
seriously any threats or acts of harm to
students through activities organized by
student organizations and act quickly to
prevent any potential harm to students by these
groups;
(E) institutions of higher education should
ensure law enforcement has access to
investigate any crimes committed by student
organizations without obstruction from the
students, student organization, administrators,
or faculty; and
(F) hazing is a dangerous practice and should
not be allowed on any campus.
(2) Disclosure of policies.--Each institution of
higher education participating in any program under
this title shall ensure that--
(A) all policies and required procedures
related to hazing are clearly posted for
students, faculty, and administrators; and
(B) all student organizations are aware of--
(i) the policies described in
subparagraph (A), including all
prohibited activities; and
(ii) the dangers of hazing.
(3) Hazing defined.--In this subsection, the term
``hazing'' means any intentional, knowing, or reckless
act committed by a student, or a former student, of an
institution of higher education, whether individually
or with other persons, against another student, that--
(A) was committed in connection with an
initiation into, an affiliation with, or the
maintenance of membership in, any organization
that is affiliated with such institution of
higher education; and
(B)(i) contributes to a substantial risk of
physical injury, mental harm, or personal
degradation; or
(ii) causes physical injury, mental harm or
personal degradation.
* * * * * * *
SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.
(a) In General.--The Secretary shall implement, in
cooperation with States, institutions of higher education,
secondary schools, early intervention and outreach programs
under this title, other agencies and organizations involved in
student financial assistance and college access, public
libraries, community centers, employers, and businesses, a
comprehensive system of early financial aid information in
order to provide students and families with early information
about financial aid and early estimates of such students'
eligibility for financial aid from multiple sources. Such
system shall include the activities described in subsection
(b).
(b) Communication of Availability of Aid and Aid
Eligibility.--
(1) Students who receive benefits.--The Secretary
shall--
(A) make special efforts to notify students
who receive or are eligible to receive benefits
under a Federal means-tested benefit program
(including the supplemental nutrition
assistance program under the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et seq.)), or
another such benefit program as determined by
the Secretary, of such students' potential
eligibility for the Federal Pell Grant amount,
determined under section 401(b)(2)(A), for
which the student would be eligible; and
(B) disseminate such informational materials,
that are part of the system described in
subsection (a), as the Secretary determines
necessary.
(2) Secondary school students.--[The Secretary,] To
improve the financial and economic literacy of students
and parents of students in order to make informed
decisions with respect to financing postsecondary
education, the Secretary, in cooperation with States,
institutions of higher education, other organizations
involved in college access and student financial aid,
secondary schools, and programs under this title that
serve secondary school students, shall make special
efforts to notify students in secondary school and
their families, as early as possible but not later than
such students' [junior year] sophomore year of
secondary school, of the availability of financial aid
under this title and shall provide nonbinding estimates
of the amounts of grant and loan aid that an individual
may be eligible for under this title upon completion of
an application form under section 483(a). [The
Secretary shall ensure that] The Secretary shall--
(A) ensure that such information is as
accurate as possible and that such information
is provided in an age-appropriate format using
dissemination mechanisms suitable for students
in secondary school.
(B) create an online platform--
(i) for States, institutions of
higher education, other organizations
involved in college access and student
financial aid, secondary schools, and
programs under this title that serve
secondary school students to share best
practices on disseminating information
under this section; and
(ii) on which the Secretary shall
annually--
(I) summarize such best
practices; and
(II) describe the
notification and dissemination
activities carried out under
this section.
(3) Adult learners.--The Secretary, in cooperation
with States, institutions of higher education, other
organizations involved in college access and student
financial aid, employers, workforce investment boards,
and public libraries, shall make special efforts to
provide individuals who would qualify as independent
students, as defined in section 480(d), with
information regarding the availability of financial aid
under this title and with nonbinding estimates of the
amounts of grant and loan aid that an individual may be
eligible for under this title upon completion of an
application form under section 483(a). The Secretary
shall ensure that such information--
(A) is as accurate as possible;
(B) includes specific information regarding
the availability of financial aid for students
qualified as independent students, as defined
in section 480(d); and
(C) uses dissemination mechanisms suitable
for adult learners.
(4) Public awareness campaign.--[Not later than two
years after the date of enactment of the Higher
Education Opportunity Act, the] The Secretary, in
coordination with States, institutions of higher
education, early intervention and outreach programs
under this title, other agencies and organizations
involved in college access and student financial aid,
secondary schools, organizations that provide services
to individuals that are or were homeless, to
individuals in foster care, or to other disconnected
individuals, local educational agencies, public
libraries, community centers, businesses, employers,
employment services, workforce investment boards, and
movie theaters, shall continue to implement a public
awareness campaign in order to increase national
awareness regarding the availability of financial aid
under this title. The public awareness campaign shall
disseminate accurate information regarding the
availability of financial aid under this title and
shall be implemented, to the extent practicable, using
a variety of media, including print, television, radio,
and [the Internet] the Internet, including through
social media. The Secretary shall design and implement
the public awareness campaign based upon relevant
independent research and the information and
dissemination strategies found most effective in
implementing paragraphs (1) through (3).
(c) Online Estimator Tool.--
(1) In general.--Not later than 1 year after the date
of enactment of the PROSPER Act, the Secretary, in
consultation with States, institutions of higher
education, and other individuals with experience or
expertise in student financial assistance application
processes, shall develop an early estimator tool to be
available online and through a mobile application,
which--
(A) allows an individual to--
(i) enter basic financial and other
relevant information; and
(ii) on the basis of such
information, receive non-binding
estimates of potential Federal grant,
loan, or work study assistance under
this title for which a student may be
eligible upon completion of an
application form under section 483(a);
(B) with respect to each institution of
higher education that participates in a program
under this title selected by an individual for
purposes of the estimator tool, provides the
individual with the net price (as defined in
section 132) for the income category described
in paragraph (2) that is determined on the
basis of the information under subparagraph
(A)(i) of this paragraph entered by the
individual;
(C) includes a clear and conspicuous
disclaimer that the amounts calculated using
the estimator tool are estimates based on
limited financial information, and that--
(i) each such estimate--
(I) in the case of an
estimate under subparagraph
(A), is only an estimate and
does not represent a final
determination, or actual award,
of financial assistance under
this title;
(II) in the case of an
estimate under subparagraph
(B), is only an estimate and
not a guarantee of the actual
amount that a student may be
charged;
(III) shall not be binding on
the Secretary or an institution
of higher education; and
(IV) may change; and
(ii) a student must complete an
application form under section 483(a)
in order to be eligible for, and
receive, an actual financial aid award
that includes Federal grant, loan, or
work study assistance under this title;
and
(D) includes a clear and conspicuous
explanation of the differences between a grant
and a loan, and that an individual will be
required to repay any loan borrowed by the
individual.
(2) Income categories.--The income categories for
purposes of paragraph (1)(B) are as follows:
(A) $0 to $30,000.
(B) $30,001 to $48,000.
(C) $48,001 to $75,000.
(D) $75,001 to $110,000.
(E) $110,001 to $150,000.
(F) Over $150,000.
(3) Consumer testing.--In developing and maintaining
the estimator tool described in paragraph (1), the
Secretary shall conduct consumer testing with
appropriate persons, including current and prospective
college students, family members of such students, and
other individuals with expertise in student financial
assistance application processes and college access, to
ensure that such tool is easily understandable by
students and families and effective in communicating
early aid eligibility.
(4) Data storage prohibited.--In carrying out this
subsection, the Secretary shall not keep, store, or
warehouse any data inputted by individuals accessing
the tool described in paragraph (1).
(d) Pell Table.--
(1) In general.--The Secretary shall develop, and
annually update at the beginning of each award year,
the following electronic tables to be utilized in
carrying out this section and containing the
information described in paragraph (2) of this
subsection:
(A) An electronic table for dependent
students.
(B) An electronic table for independent
students with dependents other than a spouse.
(C) An electronic table for independent
students without dependents other than a
spouse.
(2) Information.--Each electronic table under
paragraph (1), with respect to the category of students
to which the table applies for the most recently
completed award year for which information is
available, and disaggregated in accordance with
paragraph (3), shall contain the following information:
(A) The percentage of undergraduate students
attending an institution of higher education on
a full-time, full-academic year basis who file
the financial aid form prescribed under section
483 for the award year and received, for their
first academic year during such award year (and
not for any additional payment periods after
such first academic year), the following:
(i) A Federal Pell Grant equal to the
maximum amount of a Federal Pell Grant
award determined under section
401(b)(2) for such award year.
(ii) A Federal Pell Grant in an
amount that is--
(I) less than the maximum
amount described in clause (i);
and
(II) not less than 3/4 of
such maximum amount for such
award year.
(iii) A Federal Pell Grant in an
amount that is--
(I) less than 3/4 of such
maximum amount; and
(II) not less than 1/2 of
such maximum amount for such
award year.
(iv) A Federal Pell Grant in an
amount that is--
(I) less than 1/2 of such
maximum amount; and
(II) not less than the
minimum Federal Pell Grant
amount determined under section
401(b)(4) for such award year.
(B) The dollar amounts equal to--
(i) the maximum amount of a Federal
Pell Grant award determined under
section 401(b)(2) for an award year;
(ii) 3/4 of such maximum amount;
(iii) 1/2 of such maximum amount; and
(iv) the minimum Federal Pell Grant
amount determined under section
401(b)(4) for such award year.
(C) A clear and conspicuous notice that--
(i) the Federal Pell Grant amounts
listed in subparagraph (B) are for a
previous award year, and such amounts
and the requirements for awarding such
amounts may be different for succeeding
award years; and
(ii) the Federal Pell Grant amount
for which a student may be eligible
will be determined based on a number of
factors, including enrollment status,
once the student completes an
application form under section 483(a).
(D) A link to the early estimator tool
described in subsection (c) of this section,
which includes an explanation that an
individual may estimate a student's potential
Federal aid eligibility under this title by
accessing the estimator on the individual's
mobile phone or online.
(3) Income categories.--The information provided
under paragraph (2)(A) shall be disaggregated by the
following income categories:
(A) Less than $5,000.
(B) $5,000 to $9,999.
(C) $10,000 to $19,999.
(D) $20,000 to $29,999.
(E) $30,000 to $39,999.
(F) $40,000 to $49,999.
(G) $50,000 to $59,999.
(H) Greater than $59,999.
(e) Limitation.--The Secretary may not require a State to
participate in the activities or disseminate the materials
described in this section.
[SEC. 486. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
[(a) Purpose.--It is the purpose of this section--
[(1) to allow demonstration programs that are
strictly monitored by the Department of Education to
test the quality and viability of expanded distance
education programs currently restricted under this Act;
[(2) to provide for increased student access to
higher education through distance education programs;
and
[(3) to help determine--
[(A) the most effective means of delivering
quality education via distance education course
offerings;
[(B) the specific statutory and regulatory
requirements which should be altered to provide
greater access to high quality
distanceeducation programs; and
[(C) the appropriate level of Federal
assistance for students enrolled in distance
education programs.
[(b) Demonstration Programs Authorized.--
[(1) In general.--In accordance with the provisions
of subsection (d), the Secretary is authorized to
select institutions of higher education, systems of
such institutions, or consortia of such institutions
for voluntary participation in a Distance Education
Demonstration Program that provides participating
institutions with the ability to offer distance
education programs that do not meet all or a portion of
the sections or regulations described in paragraph (2).
[(2) Waivers.--The Secretary is authorized to waive
for any institution of higher education, system of
institutions of higher education, or consortium
participating in a Distance Education Demonstration
Program, the requirements of section 472(5) as the
section relates to computer costs, sections 481(a) and
481(b) as such sections relate to requirements for a
minimum number of weeks of instruction, sections
102(a)(3)(A), 102(a)(3)(B), and 484(l)(1), or one or
more of the regulations prescribed under this part or
part F which inhibit the operation of quality distance
education programs.
[(3) Eligible applicants.--
[(A) Eligible institutions.--Except as
provided in subparagraphs (B), (C), and (D),
only an institution of higher education that is
eligible to participate in programs under this
title shall be eligible to participate in the
demonstration program authorized under this
section.
[(B) Prohibition.--An institution of higher
education described in section 102(a)(1)(C)
shall not be eligible to participate in the
demonstration program authorized under this
section.
[(C) Special rule.--Subject to subparagraph
(B), an institution of higher education that
meets the requirements of subsection (a) of
section 102, other than the requirement of
paragraph (3)(A) or (3)(B) of such subsection,
and that provides a 2-year or 4-year program of
instruction for which the institution awards an
associate or baccalaureate degree, shall be
eligible to participate in the demonstration
program authorized under this section.
[(D) Requirement.--Notwithstanding any other
provision of this paragraph, Western Governors
University shall be considered eligible to
participate in the demonstration program
authorized under this section. In addition to
the waivers described in paragraph (2), the
Secretary may waive the provisions of title I
and parts G and H of this title for such
university that the Secretary determines to be
appropriate because of the unique
characteristics of such university. In carrying
out the preceding sentence, the Secretary shall
ensure that adequate program integrity and
accountability measures apply to such
university's participation in the demonstration
program authorized under this section.
[(c) Application.--
[(1) In general.--Each institution, system, or
consortium of institutions desiring to participate in a
demonstration program under this section shall submit
an application to the Secretary at such time and in
such manner as the Secretary may require.
[(2) Contents.--Each application shall include--
[(A) a description of the institution,
system, or consortium's consultation with a
recognized accrediting agency or association
with respect to quality assurances for the
distance education programs to be offered;
[(B) a description of the statutory and
regulatory requirements described in subsection
(b)(2) or, if applicable, subsection (b)(3)(D)
for which a waiver is sought and the reasons
for which the waiver is sought;
[(C) a description of the distance education
programs to be offered;
[(D) a description of the students to whom
distance education programs will be offered;
[(E) an assurance that the institution,
system, or consortium will offer full
cooperation with the ongoing evaluations of the
demonstration program provided for in this
section; and
[(F) such other information as the Secretary
may require.
[(d) Selection.--
[(1) In general.--For the first year of the
demonstration program authorized under this section,
the Secretary is authorized to select for participation
in the program not more than 15 institutions, systems
of institutions, or consortia of institutions. For the
third year of the demonstration program authorized
under this section, the Secretary may select not more
than 35 institutions, systems, or consortia, in
addition to the institutions, systems, or consortia
selected pursuant to the preceding sentence, to
participate in the demonstration program if the
Secretary determines that such expansion is warranted
based on the evaluations conducted in accordance with
subsections (f) and (g).
[(2) Considerations.--In selecting institutions to
participate in the demonstration program in the first
or succeeding years of the program, the Secretary shall
take into account--
[(A) the number and quality of applications
received;
[(B) the Department's capacity to oversee and
monitor each institution's participation;
[(C) an institution's--
[(i) financial responsibility;
[(ii) administrative capability; and
[(iii) program or programs being
offered via distance education; and
[(D) ensuring the participation of a diverse
group of institutions with respect to size,
mission, and geographic distribution.
[(e) Notification.--The Secretary shall make available to the
public and to the authorizing committees a list of
institutions, systems or consortia selected to participate in
the demonstration program authorized by this section. Such
notice shall include a listing of the specific statutory and
regulatory requirements being waived for each institution,
system or consortium and a description of the distance
education courses to be offered.
[(f) Evaluations and Reports.--
[(1) Evaluation.--The Secretary shall evaluate the
demonstration programs authorized under this section on
an annual basis. Such evaluations specifically shall
review--
[(A) the extent to which the institution,
system or consortium has met the goals set
forth in its application to the Secretary,
including the measures of program quality
assurance;
[(B) the number and types of students
participating in the programs offered,
including the progress of participating
students toward recognized certificates or
degrees and the extent to which participation
in such programs increased;
[(C) issues related to student financial
assistance for distance education;
[(D) effective technologies for delivering
distance education course offerings; and
[(E) the extent to which statutory or
regulatory requirements not waived under the
demonstration program present difficulties for
students or institutions.
[(2) Policy analysis.--The Secretary shall review
current policies and identify those policies that
present impediments to the development and use of
distance education and other nontraditional methods of
expanding access to education.
[(3) Annual reports.--The Secretary shall provide
reports to the authorizing committees on an annual
basis regarding--
[(A) the demonstration programs authorized
under this section; and
[(B) the number and types of students
receiving assistance under this title for
instruction leading to a recognized
certificate, as provided for in section
484(l)(1), including the progress of such
students toward recognized certificates and the
degree to which participation in such programs
leading to such certificates increased.
[(g) Oversight.--In conducting the demonstration program
authorized under this section, the Secretary shall, on a
continuing basis--
[(1) assure compliance of institutions, systems or
consortia with the requirements of this title (other
than the sections and regulations that are waived under
subsections (b)(2) and (b)(3)(D));
[(2) provide technical assistance;
[(3) monitor fluctuations in the student population
enrolled in the participating institutions, systems or
consortia; and
[(4) consult with appropriate accrediting agencies or
associations and appropriate State regulatory
authorities.
[(h) Definition.--For the purpose of this section, the term
``distance education'' means an educational process that is
characterized by the separation, in time or place, between
instructor and student. Such term may include courses offered
principally through the use of--
[(1) television, audio, or computer transmission,
such as open broadcast, closed circuit, cable,
microwave, or satellite transmission;
[(2) audio or computer conferencing;
[(3) video cassettes or discs; or
[(4) correspondence.]
* * * * * * *
SEC. 487. PROGRAM PARTICIPATION AGREEMENTS.
(a) Required for Programs of Assistance; Contents.--In order
to be an eligible institution for the purposes of any program
authorized under this title, an institution must be an
institution of higher education or an eligible institution (as
that term is defined for the purpose of that program) and
shall[, except with respect to a program under subpart 4 of
part A], enter into a program participation agreement with the
Secretary. The agreement shall condition the initial and
continuing eligibility of an institution to participate in a
program upon compliance with the following requirements:
(1) The institution will use funds received by it for
any program under this title and any interest or other
earnings thereon solely for the purpose specified in
and in accordance with the provision of that program.
(2) The institution shall not charge any student a
fee for processing or handling any application, form,
or data required to determine the student's eligibility
for assistance under this title or the amount of such
assistance.
(3) The institution will establish and maintain such
administrative and fiscal procedures and records as may
be necessary to ensure proper and efficient
administration of funds received from the Secretary or
from students under this title, together with
assurances that the institution will provide, upon
request and in a timely fashion, information relating
to the administrative capability and financial
responsibility of the institution to--
(A) the Secretary;
(B) the appropriate guaranty agency; and
(C) the appropriate accrediting agency or
association.
(4) The institution will comply with the provisions
of subsection (c) of this section and the regulations
prescribed under that subsection, relating to fiscal
eligibility.
(5) The institution will submit reports to the
Secretary [and, in the case of an institution
participating in a program under part B or part E, to
holders of loans made to the institution's students
under such parts] at such times and containing such
information as the Secretary may reasonably require to
carry out the purpose of this title.
[(6) The institution will not provide any student
with any statement or certification to any lender under
part B that qualifies the student for a loan or loans
in excess of the amount that student is eligible to
borrow in accordance with sections 425(a), 428(a)(2),
and 428(b)(1) (A) and (B).]
[(7)] (6) The institution will comply with the
requirements of section 485.
[(8)] (7) In the case of an institution that
advertises job placement rates as a means of attracting
students to enroll in the institution, the institution
will make available to prospective students, at or
before the time of application (A) the most recent
available data concerning employment statistics,
graduation statistics, and any other information
necessary to substantiate the truthfulness of the
advertisements, and (B) relevant State licensing
requirements of the State in which such institution is
located for any job for which the course of instruction
is designed to prepare such prospective students.
[(9)] (8) In the case of an institution participating
[in a program under part B or D] in a loan program
under this title, the institution will inform all
eligible borrowers enrolled in the institution about
the availability and eligibility of such borrowers for
State grant assistance from the State in which the
institution is located, and will inform such borrowers
from another State of the source for further
information concerning such assistance from that State.
[(10)] (9) The institution certifies that it has in
operation a drug abuse prevention program under section
118 that is determined by the institution to be
accessible to any officer, employee, or student at the
institution.
[(11)] (10) In the case of any institution whose
students receive financial assistance pursuant to
section 484(d), the institution will make available to
such students a program proven successful in assisting
students in obtaining a certificate of high school
equivalency.
[(12)] (11) The institution certifies that--
(A) the institution has established a campus
security policy; and
(B) the institution has complied with the
disclosure requirements of section 485(f).
[(13)] (12) The institution will not deny any form of
Federal financial aid to any student who meets the
eligibility requirements of this title on the grounds
that the student is participating in a program of study
abroad approved for credit by the institution.
[(14)] (13)(A) The institution, in order to
participate as an eligible institution [under part B or
D] a loan program under this title, will develop a
[Default Management Plan] Repayment Success Plan for
approval by the Secretary as part of its initial
application for certification as an eligible
institution and will implement such Plan for two years
thereafter.
(B) Any institution of higher education which changes
ownership and any eligible institution which changes
its status as a parent or subordinate institution
shall, in order to participate as an eligible
institution [under part B or D] a loan program under
this title, develop a [Default Management Plan]
Repayment Success Plan for approval by the Secretary
and implement such Plan for two years after its change
of ownership or status.
(C) This paragraph shall not apply in the case of an
institution in which (i) neither the parent nor the
subordinate institution has [a cohort default rate in
excess of 10 percent] any program with a loan repayment
rate less than 65 percent, and (ii) the new owner of
such parent or subordinate institution does not, and
has not, owned any other institution with [a cohort
default rate in excess of 10 percent] any program with
a loan repayment rate less than 65 percent.
[(15)] (14) The institution acknowledges the
authority of the Secretary, guaranty agencies, lenders,
accrediting agencies, the Secretary of Veterans
Affairs, and the State agencies under subpart 1 of part
H to share with each other any information pertaining
to the institution's eligibility to participate in
programs under this title or any information on fraud
and abuse.
[(16)] (15)(A) The institution will not knowingly
employ an individual in a capacity that involves the
administration of programs under this title, or the
receipt of program funds under this title, who has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of funds under this title, or has been judicially
determined to have committed fraud involving funds
under this title or contract with an institution or
third party servicer that has been terminated under
section 432 involving the acquisition, use, or
expenditure of funds under this title, or who has been
judicially determined to have committed fraud involving
funds under this title.
(B) The institution will not knowingly contract with
or employ any individual, agency, or organization that
has been, or whose officers or employees have been--
(i) convicted of, or pled nolo contendere or
guilty to, a crime involving the acquisition,
use, or expenditure of funds under this title;
or
(ii) judicially determined to have committed
fraud involving funds under this title.
[(17)] (16) The institution will complete surveys
conducted as a part of the Integrated Postsecondary
Education Data System (IPEDS) or any other Federal
postsecondary institution data collection effort, as
designated by the Secretary, in a timely manner and to
the satisfaction of the Secretary.
[(18)] (17) The institution will meet the
requirements established pursuant to section 485(g).
[(19)] (18) The institution will not impose any
penalty, including the assessment of late fees, the
denial of access to classes, libraries, or other
institutional facilities, or the requirement that the
student borrow additional funds, on any student because
of the student's inability to meet his or her financial
obligations to the institution as a result of the
delayed disbursement of the proceeds of a loan made
under this title due to compliance with the provisions
of this title, or delays attributable to the
institution.
[(20)] (19) [The institution] (A) Except as provided
in subparagraph (B), the institution will not provide
any commission, bonus, or other incentive payment based
directly or indirectly on success in securing
enrollments or financial aid to any persons or entities
engaged in any student recruiting or admission
activities or in making decisions regarding the award
of student financial assistance, except that this
paragraph shall not apply to the recruitment of foreign
students residing in foreign countries who are not
eligible to receive Federal student assistance.
(B) An institution described in section 101 may
provide payment, based on--
(i) the amount of tuition generated by the
institution from student enrollment, to a
third-party entity that provides a set of
services to the institution that includes
student recruitment services, regardless of
whether the third-party entity is affiliated
with an institution that provides educational
services other than the institution providing
such payment, if--
(I) the third-party entity is not
affiliated with the institution
providing such payment;
(II) the third-party entity does not
make compensation payments to its
employees that would be prohibited
under subparagraph (A) if such payments
were made by the institution;
(III) the set of services provided to
the institution by the third-party
entity include services in addition to
student recruitment services, and the
institution does not pay the third-
party entity solely or separately for
student recruitment services provided
by the third-party entity; and
(IV) any student recruitment
information available to the third-
party entity, including personally
identifiable information, will not be
used by, shared with, or sold to any
other person or entity, including any
institution that is affiliated with the
third-party entity, unless written
consent is provided by the student; and
(ii) students successfully completing their
educational programs, to persons who were
engaged in recruiting such students, but solely
to the extent that such payments--
(I) are obligated to be paid, and are
actually paid, only after each student
upon whom such payments are based has
successfully completed his or her
educational program; and
(II) are paid only to employees of
the institution or its parent company,
and not to any other person or outside
entity.
[(21)] (20) The institution will meet the
requirements established by the Secretary and
accrediting agencies or associations, and will provide
evidence to the Secretary that the institution has the
authority to operate [within a State] within a State in
which it maintains a physical location.
[(22)] (21) The institution will comply with the
refund policy established pursuant to section 484B.
[(23)(A) The institution, if located in a State to
which section 4(b) of the National Voter Registration
Act of 1993 (42 U.S.C. 1973gg-2(b)) does not apply,
will make a good faith effort to distribute a mail
voter registration form, requested and received from
the State, to each student enrolled in a degree or
certificate program and physically in attendance at the
institution, and to make such forms widely available to
students at the institution.
[(B) The institution shall request the forms from the
State 120 days prior to the deadline for registering to
vote within the State. If an institution has not
received a sufficient quantity of forms to fulfill this
section from the State within 60 days prior to the
deadline for registering to vote in the State, the
institution shall not be held liable for not meeting
the requirements of this section during that election
year.
[(C) This paragraph shall apply to general and
special elections for Federal office, as defined in
section 301(3) of the Federal Election Campaign Act of
1971 (2 U.S.C. 431(3)), and to the elections for
Governor or other chief executive within such State).
[(D) The institution shall be considered in
compliance with the requirements of
subparagraph (A) for each student to whom the
institution electronically transmits a message
containing a voter registration form acceptable
for use in the State in which the institution
is located, or an Internet address where such a
form can be downloaded, if such information is
in an electronic message devoted exclusively to
voter registration.
[(24) In the case of a proprietary institution of
higher education (as defined in section 102(b)), such
institution will derive not less than ten percent of
such institution's revenues from sources other than
funds provided under this title, as calculated in
accordance with subsection (d)(1), or will be subject
to the sanctions described in subsection (d)(2).]
(22) The institution, if located in a State to which
section 4(b) of the National Voter Registration Act of
1993 (42 U.S.C. 1973gg-2(b)) does not apply, will make
a good faith effort to distribute, including through
electronic transmission, voter registration forms to
students enrolled and physically in attendance at the
institution.
[(25)] (23) In the case of an institution that
participates in a loan program under this title, the
institution will--
(A) develop a code of conduct with respect to
such loans with which the institution's
officers, employees, and agents shall comply,
that--
(i) prohibits a conflict of interest
with the responsibilities of an
officer, employee, or agent of an
institution with respect to such loans;
and
(ii) at a minimum, includes the
provisions described in subsection (e);
(B) publish such code of conduct prominently
on the institution's website; and
(C) administer and enforce such code by, at a
minimum, requiring that all of the
institution's officers, employees, and agents
with responsibilities with respect to such
loans be annually informed of the provisions of
the code of conduct.
[(26)] (24) The institution will, upon written
request, disclose to the alleged victim of any crime of
violence (as that term is defined in section 16 of
title 18, United States Code), or a nonforcible sex
offense, the report on the results of any disciplinary
proceeding conducted by such institution against a
student who is the alleged perpetrator of such crime or
offense with respect to such crime or offense. If the
alleged victim of such crime or offense is deceased as
a result of such crime or offense, the next of kin of
such victim shall be treated as the alleged victim for
purposes of this paragraph.
[(27)] (25) In the case of an institution that has
entered into a preferred lender arrangement, the
institution will at least annually compile, maintain,
and make available for students attending the
institution, and the families of such students, a list,
in print or other medium, of the specific lenders for
loans made, insured, or guaranteed under this title or
private education loans that the institution
recommends, promotes, or endorses in accordance with
such preferred lender arrangement. In making such list,
the institution shall comply with the requirements of
subsection (h).
[(28)] (26)(A) The institution will, upon the request
of an applicant for a private education loan, provide
to the applicant the form required under section
128(e)(3) of the Truth in Lending Act (15 U.S.C.
1638(e)(3)), and the information required to complete
such form, to the extent the institution possesses such
information.
(B) For purposes of this paragraph, the term
``private education loan'' has the meaning given such
term in section 140 of the Truth in Lending Act.
[(29) The institution certifies that the
institution--
[(A) has developed plans to effectively
combat the unauthorized distribution of
copyrighted material, including through the use
of a variety of technology-based deterrents;
and
[(B) will, to the extent practicable, offer
alternatives to illegal downloading or peer-to-
peer distribution of intellectual property, as
determined by the institution in consultation
with the chief technology officer or other
designated officer of the institution.]
(27) The institution will have a policy prohibiting
copyright infringement.
(b) Hearings.--(1) An institution that has received written
notice of a final audit or program review determination and
that desires to have such determination reviewed by the
Secretary shall submit to the Secretary a written request for
review not later than 45 days after receipt of notification of
the final audit or program review determination.
(2) The Secretary shall, upon receipt of written notice under
paragraph (1), arrange for a hearing and notify the institution
within 30 days of receipt of such notice the date, time, and
place of such hearing. Such hearing shall take place not later
than 120 days from the date upon which the Secretary notifies
the institution.
(c) Audits; Financial Responsibility; Enforcement of
Standards.--(1) Notwithstanding any other provisions of this
title, the Secretary shall prescribe such regulations as may be
necessary to provide for--
(A)(i) except as provided in clauses (ii) and (iii),
a financial audit of an eligible institution with
regard to the financial condition of the institution in
its entirety, and a compliance audit of such
institution with regard to any funds obtained by it
under this title or obtained from a student or a parent
who has a loan insured or guaranteed by the Secretary
under this title, on at least an annual basis and
covering the period since the most recent audit,
conducted by a qualified, independent organization or
person in accordance with standards established by the
Comptroller General for the audit of governmental
organizations, programs, and functions, and as
prescribed in regulations of the Secretary, the results
of which shall be submitted to the Secretary and shall
be available to cognizant guaranty agencies, eligible
lenders, State agencies, and the appropriate State
agency notifying the Secretary under subpart 1 of part
H, except that the Secretary may modify the
requirements of this clause with respect to
institutions of higher education that are foreign
institutions, and may waive such requirements with
respect to a foreign institution whose students receive
less than $500,000 in loans under this title during the
award year preceding the audit period;
(ii) with regard to an eligible institution which is
audited under chapter 75 of title 31, United States
Code, deeming such audit to satisfy the requirements of
clause (i) for the period covered by such audit; or
(iii) at the discretion of the Secretary, with regard
to an eligible institution (other than an eligible
institution described in [section 102(a)(1)(C)] section
102(a)(1)) that has obtained less than $200,000 in
funds under this title during each of the 2 award years
that precede the audit period and submits a letter of
credit payable to the Secretary equal to not less than
\1/2\ of the annual potential liabilities of such
institution as determined by the Secretary, deeming an
audit conducted every 3 years to satisfy the
requirements of clause (i), except for the award year
immediately preceding renewal of the institution's
eligibility under section 498(g);
(B) in matters not governed by specific program
provisions, the establishment of reasonable standards
of financial responsibility and appropriate
institutional capability for the administration by an
eligible institution of a program of student financial
aid under this title, including any matter the
Secretary deems necessary to the sound administration
of the financial aid programs, such as the pertinent
actions of any owner, shareholder, or person exercising
control over an eligible institution;
(C)(i) except as provided in clause (ii), a
compliance audit of a third party servicer (other than
with respect to the servicer's functions as a lender if
such functions are otherwise audited under this part
and such audits meet the requirements of this clause),
with regard to any contract with an eligible
institution, guaranty agency, or lender for
administering or servicing any aspect of the student
assistance programs under this title, at least once
every year and covering the period since the most
recent audit, conducted by a qualified, independent
organization or person in accordance with standards
established by the Comptroller General for the audit of
governmental organizations, programs, and functions,
and as prescribed in regulations of the Secretary, the
results of which shall be submitted to the Secretary;
or
(ii) with regard to a third party servicer that is
audited under chapter 75 of title 31, United States
Code, such audit shall be deemed to satisfy the
requirements of clause (i) for the period covered by
such audit;
(D)(i) a compliance audit of a secondary market with
regard to its transactions involving, and its servicing
and collection of, loans made under this title, at
least once a year and covering the period since the
most recent audit, conducted by a qualified,
independent organization or person in accordance with
standards established by the Comptroller General for
the audit of governmental organizations, programs, and
functions, and as prescribed in regulations of the
Secretary, the results of which shall be submitted to
the Secretary; or
(ii) with regard to a secondary market that is
audited under chapter 75 of title 31, United States
Code, such audit shall be deemed to satisfy the
requirements of clause (i) for the period covered by
the audit;
(E) the establishment, by each eligible institution
under part B responsible for furnishing to the lender
the statement required by section 428(a)(2)(A)(i), of
policies and procedures by which the latest known
address and enrollment status of any student who has
had a loan insured under this part and who has either
formally terminated his enrollment, or failed to re-
enroll on at least a half-time basis, at such
institution, shall be furnished either to the holder
(or if unknown, the insurer) of the note, not later
than 60 days after such termination or failure to re-
enroll;
(F) the limitation, suspension, or termination of the
participation in any program under this title of an
eligible institution, or the imposition of a civil
penalty under paragraph (3)(B) whenever the Secretary
has determined, after reasonable notice and opportunity
for hearing, that such institution has violated or
failed to carry out any provision of this title, any
regulation prescribed under this title, or any
applicable special arrangement, agreement, or
limitation, except that no period of suspension under
this section shall exceed 60 days unless the
institution and the Secretary agree to an extension or
unless limitation or termination proceedings are
initiated by the Secretary within that period of time;
(G) an emergency action against an institution, under
which the Secretary shall, effective on the date on
which a notice and statement of the basis of the action
is mailed to the institution (by registered mail,
return receipt requested), withhold funds from the
institution or its students and withdraw the
institution's authority to obligate funds under any
program under this title, if the Secretary--
(i) receives information, determined by the
Secretary to be reliable, that the institution
is violating any provision of this title, any
regulation prescribed under this title, or any
applicable special arrangement, agreement, or
limitation,
(ii) determines that immediate action is
necessary to prevent misuse of Federal funds,
and
(iii) determines that the likelihood of loss
outweighs the importance of the procedures
prescribed under subparagraph (D) for
limitation, suspension, or termination,
except that an emergency action shall not exceed 30
days unless limitation, suspension, or termination
proceedings are initiated by the Secretary against the
institution within that period of time, and except that
the Secretary shall provide the institution an
opportunity to show cause, if it so requests, that the
emergency action is unwarranted;
(H) the limitation, suspension, or termination of the
eligibility of a third party servicer to contract with
any institution to administer any aspect of an
institution's student assistance program under this
title, or the imposition of a civil penalty under
paragraph (3)(B), whenever the Secretary has
determined, after reasonable notice and opportunity for
a hearing, that such organization, acting on behalf of
an institution, has violated or failed to carry out any
provision of this title, any regulation prescribed
under this title, or any applicable special
arrangement, agreement, or limitation, except that no
period of suspension under this subparagraph shall
exceed 60 days unless the organization and the
Secretary agree to an extension, or unless limitation
or termination proceedings are initiated by the
Secretary against the individual or organization within
that period of time; and
(I) an emergency action against a third party
servicer that has contracted with an institution to
administer any aspect of the institution's student
assistance program under this title, under which the
Secretary shall, effective on the date on which a
notice and statement of the basis of the action is
mailed to such individual or organization (by
registered mail, return receipt requested), withhold
funds from the individual or organization and withdraw
the individual or organization's authority to act on
behalf of an institution under any program under this
title, if the Secretary--
(i) receives information, determined by the
Secretary to be reliable, that the individual
or organization, acting on behalf of an
institution, is violating any provision of this
title, any regulation prescribed under this
title, or any applicable special arrangement,
agreement, or limitation,
(ii) determines that immediate action is
necessary to prevent misuse of Federal funds,
and
(iii) determines that the likelihood of loss
outweighs the importance of the procedures
prescribed under subparagraph (F), for
limitation, suspension, or termination,
except that an emergency action shall not exceed 30
days unless the limitation, suspension, or termination
proceedings are initiated by the Secretary against the
individual or organization within that period of time,
and except that the Secretary shall provide the
individual or organization an opportunity to show
cause, if it so requests, that the emergency action is
unwarranted.
(2) If an individual who, or entity that, exercises
substantial control, as determined by the Secretary in
accordance with the definition of substantial control in
subpart 3 of part H, over one or more institutions
participating in any program under this title, or, for purposes
of paragraphs (1) (H) and (I), over one or more organizations
that contract with an institution to administer any aspect of
the institution's student assistance program under this title,
is determined to have committed one or more violations of the
requirements of any program under this title, or has been
suspended or debarred in accordance with the regulations of the
Secretary, the Secretary may use such determination,
suspension, or debarment as the basis for imposing an emergency
action on, or limiting, suspending, or terminating, in a single
proceeding, the participation of any or all institutions under
the substantial control of that individual or entity.
(3)(A) Upon determination, after reasonable notice and
opportunity for a hearing, that an eligible institution has
engaged in substantial misrepresentation of the nature of its
educational program, its financial charges, or the
employability of its graduates, the Secretary may suspend or
terminate the eligibility status for any or all programs under
this title of any otherwise eligible institution, in accordance
with procedures specified in paragraph (1)(D) of this
subsection, until the Secretary finds that such practices have
been corrected.
(B)(i) Upon determination, after reasonable notice and
opportunity for a hearing, that an eligible institution--
(I) has violated or failed to carry out any provision
of this title or any regulation prescribed under this
title; or
(II) has engaged in substantial misrepresentation of
the nature of its educational program, its financial
charges, and the employability of its graduates,
the Secretary may impose a civil penalty upon such institution
of not to exceed $25,000 for each violation or
misrepresentation.
(ii) Any civil penalty may be compromised by the Secretary.
In determining the amount of such penalty, or the amount agreed
upon in compromise, the appropriateness of the penalty to the
size of the institution of higher education subject to the
determination, and the gravity of the violation, failure, or
misrepresentation shall be considered. The amount of such
penalty, when finally determined, or the amount agreed upon in
compromise, may be deducted from any sums owing by the United
States to the institution charged.
(4) The Secretary shall publish a list of State agencies
which the Secretary determines to be reliable authority as to
the quality of public postsecondary vocational education in
their respective States for the purpose of determining
eligibility for all Federal student assistance programs.
(5) The Secretary shall make readily available to appropriate
guaranty agencies, eligible lenders, State agencies notifying
the Secretary under subpart 1 of part H, and accrediting
agencies or associations the results of the audits of eligible
institutions conducted pursuant to paragraph (1)(A).
(6) The Secretary is authorized to provide any information
collected as a result of audits conducted under this section,
together with audit information collected by guaranty agencies,
to any Federal or State agency having responsibilities with
respect to student financial assistance, including those
referred to in subsection (a)(15) of this section.
(7) Effective with respect to any audit conducted under this
subsection after December 31, 1988, if, in the course of
conducting any such audit, the personnel of the Department of
Education discover, or are informed of, grants or other
assistance provided by an institution in accordance with this
title for which the institution has not received funds
appropriated under this title (in the amount necessary to
provide such assistance), including funds for which
reimbursement was not requested prior to such discovery or
information, such institution shall be permitted to offset that
amount against any sums determined to be owed by the
institution pursuant to such audit, or to receive reimbursement
for that amount (if the institution does not owe any such
sums).
[(d) Implementation of Non-Title IV Revenue Requirement.--
[(1) Calculation.--In making calculations under
subsection (a)(24), a proprietary institution of higher
education shall--
[(A) use the cash basis of accounting, except
in the case of loans described in subparagraph
(D)(i) that are made by the proprietary
institution of higher education;
[(B) consider as revenue only those funds
generated by the institution from--
[(i) tuition, fees, and other
institutional charges for students
enrolled in programs eligible for
assistance under this title;
[(ii) activities conducted by the
institution that are necessary for the
education and training of the
institution's students, if such
activities are--
[(I) conducted on campus or
at a facility under the control
of the institution;
[(II) performed under the
supervision of a member of the
institution's faculty; and
[(III) required to be
performed by all students in a
specific educational program at
the institution; and
[(iii) funds paid by a student, or on
behalf of a student by a party other
than the institution, for an education
or training program that is not
eligible for funds under this title, if
the program--
[(I) is approved or licensed
by the appropriate State
agency;
[(II) is accredited by an
accrediting agency recognized
by the Secretary; or
[(III) provides an industry-
recognized credential or
certification;
[(C) presume that any funds for a program
under this title that are disbursed or
delivered to or on behalf of a student will be
used to pay the student's tuition, fees, or
other institutional charges, regardless of
whether the institution credits those funds to
the student's account or pays those funds
directly to the student, except to the extent
that the student's tuition, fees, or other
institutional charges are satisfied by--
[(i) grant funds provided by non-
Federal public agencies or private
sources independent of the institution;
[(ii) funds provided under a
contractual arrangement with a Federal,
State, or local government agency for
the purpose of providing job training
to low-income individuals who are in
need of that training;
[(iii) funds used by a student from
savings plans for educational expenses
established by or on behalf of the
student and which qualify for special
tax treatment under the Internal
Revenue Code of 1986; or
[(iv) institutional scholarships
described in subparagraph (D)(iii);
[(D) include institutional aid as revenue to
the school only as follows:
[(i) in the case of loans made by a
proprietary institution of higher
education on or after July 1, 2008 and
prior to July 1, 2012, the net present
value of such loans made by the
institution during the applicable
institutional fiscal year accounted for
on an accrual basis and estimated in
accordance with generally accepted
accounting principles and related
standards and guidance, if the loans--
[(I) are bona fide as
evidenced by enforceable
promissory notes;
[(II) are issued at intervals
related to the institution's
enrollment periods; and
[(III) are subject to regular
loan repayments and
collections;
[(ii) in the case of loans made by a
proprietary institution of higher
education on or after July 1, 2012,
only the amount of loan repayments
received during the applicable
institutional fiscal year, excluding
repayments on loans made and accounted
for as specified in clause (i); and
[(iii) in the case of scholarships
provided by a proprietary institution
of higher education, only those
scholarships provided by the
institution in the form of monetary aid
or tuition discounts based upon the
academic achievements or financial need
of students, disbursed during each
fiscal year from an established
restricted account, and only to the
extent that funds in that account
represent designated funds from an
outside source or from income earned on
those funds;
[(E) in the case of each student who receives
a loan on or after July 1, 2008, and prior to
July 1, 2011, that is authorized under section
428H or that is a Federal Direct Unsubsidized
Stafford Loan, treat as revenue received by the
institution from sources other than funds
received under this title, the amount by which
the disbursement of such loan received by the
institution exceeds the limit on such loan in
effect on the day before the date of enactment
of the Ensuring Continued Access to Student
Loans Act of 2008; and
[(F) exclude from revenues--
[(i) the amount of funds the
institution received under part C,
unless the institution used those funds
to pay a student's institutional
charges;
[(ii) the amount of funds the
institution received under subpart 4 of
part A;
[(iii) the amount of funds provided
by the institution as matching funds
for a program under this title;
[(iv) the amount of funds provided by
the institution for a program under
this title that are required to be
refunded or returned; and
[(v) the amount charged for books,
supplies, and equipment, unless the
institution includes that amount as
tuition, fees, or other institutional
charges.
[(2) Sanctions.--
[(A) Ineligibility.--A proprietary
institution of higher education that fails to
meet a requirement of subsection (a)(24) for
two consecutive institutional fiscal years
shall be ineligible to participate in the
programs authorized by this title for a period
of not less than two institutional fiscal
years. To regain eligibility to participate in
the programs authorized by this title, a
proprietary institution of higher education
shall demonstrate compliance with all
eligibility and certification requirements
under section 498 for a minimum of two
institutional fiscal years after the
institutional fiscal year in which the
institution became ineligible.
[(B) Additional enforcement.--In addition to
such other means of enforcing the requirements
of this title as may be available to the
Secretary, if a proprietary institution of
higher education fails to meet a requirement of
subsection (a)(24) for any institutional fiscal
year, then the institution's eligibility to
participate in the programs authorized by this
title becomes provisional for the two
institutional fiscal years after the
institutional fiscal year in which the
institution failed to meet the requirement of
subsection (a)(24), except that such
provisional eligibility shall terminate--
[(i) on the expiration date of the
institution's program participation
agreement under this subsection that is
in effect on the date the Secretary
determines that the institution failed
to meet the requirement of subsection
(a)(24); or
[(ii) in the case that the Secretary
determines that the institution failed
to meet a requirement of subsection
(a)(24) for two consecutive
institutional fiscal years, on the date
the institution is determined
ineligible in accordance with
subparagraph (A).
[(3) Publication on college navigator website.--The
Secretary shall publicly disclose on the College
Navigator website--
[(A) the identity of any proprietary
institution of higher education that fails to
meet a requirement of subsection (a)(24); and
[(B) the extent to which the institution
failed to meet such requirement.
[(4) Report to congress.--Not later than July 1,
2009, and July 1 of each succeeding year, the Secretary
shall submit to the authorizing committees a report
that contains, for each proprietary institution of
higher education that receives assistance under this
title, as provided in the audited financial statements
submitted to the Secretary by each institution pursuant
to the requirements of subsection (a)(24)--
[(A) the amount and percentage of such
institution's revenues received from sources
under this title; and
[(B) the amount and percentage of such
institution's revenues received from other
sources.]
[(e)] (d) Code of Conduct Requirements.--An institution of
higher education's code of conduct, as required under
subsection (a)(25), shall include the following requirements:
(1) Ban on revenue-sharing arrangements.--
(A) Prohibition.--The institution shall not
enter into any revenue-sharing arrangement with
any lender.
(B) Definition.--For purposes of this
paragraph, the term ``revenue-sharing
arrangement'' means an arrangement between an
institution and a lender under which--
(i) a lender provides or issues a
loan that is made, insured, or
guaranteed under this title to students
attending the institution or to the
families of such students; and
(ii) the institution recommends the
lender or the loan products of the
lender and in exchange, the lender pays
a fee or provides other material
benefits, including revenue or profit
sharing, to the institution, an officer
or employee of the institution, or an
agent.
(2) Gift ban.--
(A) Prohibition.--No officer or employee of
the institution who is employed in the
financial aid office of the institution or who
otherwise has responsibilities with respect to
education loans, or agent who has
responsibilities with respect to education
loans, shall solicit or accept any gift from a
lender, guarantor, or servicer of education
loans.
(B) Definition of gift.--
(i) In general.--In this paragraph,
the term ``gift'' means any gratuity,
favor, discount, entertainment,
hospitality, loan, or other item having
a monetary value of more than a de
minimus amount. The term includes a
gift of services, transportation,
lodging, or meals, whether provided in
kind, by purchase of a ticket, payment
in advance, or reimbursement after the
expense has been incurred.
(ii) Exceptions.--The term ``gift''
shall not include any of the following:
(I) Standard material,
activities, or programs on
issues related to a loan,
default aversion, default
prevention, or financial
literacy, such as a brochure, a
workshop, or training.
(II) Food, refreshments,
training, or informational
material furnished to an
officer or employee of an
institution, or to an agent, as
an integral part of a training
session that is designed to
improve the service of a
lender, guarantor, or servicer
of education loans to the
institution, if such training
contributes to the professional
development of the officer,
employee, or agent.
(III) Favorable terms,
conditions, and borrower
benefits on an education loan
provided to a student employed
by the institution if such
terms, conditions, or benefits
are comparable to those
provided to all students of the
institution.
(IV) Entrance and exit
counseling services provided to
borrowers to meet the
institution's responsibilities
for entrance and exit
counseling as required by
subsections (b) and (l) of
section 485, as long as--
(aa) the
institution's staff are
in control of the
counseling, (whether in
person or via
electronic
capabilities); and
(bb) such counseling
does not promote the
products or services of
any specific lender.
(V) Philanthropic
contributions to an institution
from a lender, servicer, or
guarantor of education loans
that are unrelated to education
loans or any contribution from
any lender, guarantor, or
servicer that is not made in
exchange for any advantage
related to education loans.
(VI) State education grants,
scholarships, or financial aid
funds administered by or on
behalf of a State.
(iii) Rule for gifts to family
members.--For purposes of this
paragraph, a gift to a family member of
an officer or employee of an
institution, to a family member of an
agent, or to any other individual based
on that individual's relationship with
the officer, employee, or agent, shall
be considered a gift to the officer,
employee, or agent if--
(I) the gift is given with
the knowledge and acquiescence
of the officer, employee, or
agent; and
(II) the officer, employee,
or agent has reason to believe
the gift was given because of
the official position of the
officer, employee, or agent.
(3) Contracting arrangements prohibited.--
(A) Prohibition.--An officer or employee who
is employed in the financial aid office of the
institution or who otherwise has
responsibilities with respect to education
loans, or an agent who has responsibilities
with respect to education loans, shall not
accept from any lender or affiliate of any
lender any fee, payment, or other financial
benefit (including the opportunity to purchase
stock) as compensation for any type of
consulting arrangement or other contract to
provide services to a lender or on behalf of a
lender relating to education loans.
(B) Exceptions.--Nothing in this subsection
shall be construed as prohibiting--
(i) an officer or employee of an
institution who is not employed in the
institution's financial aid office and
who does not otherwise have
responsibilities with respect to
education loans, or an agent who does
not have responsibilities with respect
to education loans, from performing
paid or unpaid service on a board of
directors of a lender, guarantor, or
servicer of education loans;
(ii) an officer or employee of the
institution who is not employed in the
institution's financial aid office but
who has responsibility with respect to
education loans as a result of a
position held at the institution, or an
agent who has responsibility with
respect to education loans, from
performing paid or unpaid service on a
board of directors of a lender,
guarantor, or servicer of education
loans, if the institution has a written
conflict of interest policy that
clearly sets forth that officers,
employees, or agents must recuse
themselves from participating in any
decision of the board regarding
education loans at the institution; or
(iii) an officer, employee, or
contractor of a lender, guarantor, or
servicer of education loans from
serving on a board of directors, or
serving as a trustee, of an
institution, if the institution has a
written conflict of interest policy
that the board member or trustee must
recuse themselves from any decision
regarding education loans at the
institution.
(4) Interaction with borrowers.--The institution
shall not--
(A) for any first-time borrower, assign,
through award packaging or other methods, the
borrower's loan to a particular lender; or
(B) refuse to certify, or delay certification
of, any loan based on the borrower's selection
of a particular lender or guaranty agency.
(5) Prohibition on offers of funds for private
loans.--
(A) Prohibition.--The institution shall not
request or accept from any lender any offer of
funds to be used for private education loans
(as defined in section 140 of the Truth in
Lending Act), including funds for an
opportunity pool loan, to students in exchange
for the institution providing concessions or
promises regarding providing the lender with--
(i) a specified number of loans made,
insured, or guaranteed under this
title;
(ii) a specified loan volume of such
loans; or
(iii) a preferred lender arrangement
for such loans.
(B) Definition of opportunity pool loan.--In
this paragraph, the term ``opportunity pool
loan'' means a private education loan made by a
lender to a student attending the institution
or the family member of such a student that
involves a payment, directly or indirectly, by
such institution of points, premiums,
additional interest, or financial support to
such lender for the purpose of such lender
extending credit to the student or the family.
(6) Ban on staffing assistance.--
(A) Prohibition.--The institution shall not
request or accept from any lender any
assistance with call center staffing or
financial aid office staffing.
(B) Certain assistance permitted.--Nothing in
paragraph (1) shall be construed to prohibit
the institution from requesting or accepting
assistance from a lender related to--
(i) professional development training
for financial aid administrators;
(ii) providing educational counseling
materials, financial literacy
materials, or debt management materials
to borrowers, provided that such
materials disclose to borrowers the
identification of any lender that
assisted in preparing or providing such
materials; or
(iii) staffing services on a short-
term, nonrecurring basis to assist the
institution with financial aid-related
functions during emergencies, including
State-declared or federally declared
natural disasters, federally declared
national disasters, and other localized
disasters and emergencies identified by
the Secretary.
(7) Advisory board compensation.--Any employee who is
employed in the financial aid office of the
institution, or who otherwise has responsibilities with
respect to education loans or other student financial
aid of the institution, and who serves on an advisory
board, commission, or group established by a lender,
guarantor, or group of lenders or guarantors, shall be
prohibited from receiving anything of value from the
lender, guarantor, or group of lenders or guarantors,
except that the employee may be reimbursed for
reasonable expenses incurred in serving on such
advisory board, commission, or group.
[(f)] (e) Institutional Requirements for Teach-Outs.--
(1) In general.--In the event the Secretary initiates
the limitation, suspension, or termination of the
participation of an institution of higher education in
any program under this title under the authority of
subsection (c)(1)(F) or initiates an emergency action
under the authority of subsection (c)(1)(G) and its
prescribed regulations, the Secretary shall require
that institution to prepare a teach-out plan for
submission to the institution's accrediting agency or
association in compliance with section 496(c)(3), the
Secretary's regulations on teach-out plans, and the
standards of the institution's accrediting agency or
association.
(2) Teach-out plan defined.--In this subsection, the
term ``teach-out plan'' means a written plan that
provides for the equitable treatment of students if an
institution of higher education ceases to operate
before all students have completed their program of
study, and may include, if required by the
institution's accrediting agency or association, an
agreement between institutions for such a teach-out
plan.
[(g)] (f) Inspector General Report on Gift Ban Violations.--
The Inspector General of the Department shall--
(1) submit an annual report to the authorizing
committees identifying all violations of an
institution's code of conduct that the Inspector
General has substantiated during the preceding year
relating to the gift ban provisions described in
subsection (e)(2); and
(2) make the report available to the public through
the Department's website.
[(h)] (g) Preferred Lender List Requirements.--
(1) In general.--In compiling, maintaining, and
making available a preferred lender list as required
under subsection (a)(27), the institution will--
(A) clearly and fully disclose on such
preferred lender list--
(i) not less than the information
required to be disclosed under section
153(a)(2)(A); and
[(ii) why the institution has entered
into a preferred lender arrangement
with each lender on the preferred
lender list, particularly with respect
to terms and conditions or provisions
favorable to the borrower; and]
[(iii)] (ii) that the students
attending the institution, or the
families of such students, do not have
to borrow from a lender on the
preferred lender list;
(B) ensure, through the use of the list of
lender affiliates provided by the Secretary
under paragraph (2), that--
(i) there are not less than three
lenders of loans made under part B that
are not affiliates of each other
included on the preferred lender list
and, if the institution recommends,
promotes, or endorses private education
loans, there are not less than two
lenders of private education loans that
are not affiliates of each other
included on the preferred lender list;
and
(ii) the preferred lender list under
this paragraph--
(I) specifically indicates,
for each listed lender, whether
the lender is or is not an
affiliate of each other lender
on the preferred lender list;
and
(II) if a lender is an
affiliate of another lender on
the preferred lender list,
describes the details of such
affiliation;
[(C) prominently disclose the method and
criteria used by the institution in selecting
lenders with which to enter into preferred
lender arrangements to ensure that such lenders
are selected on the basis of the best interests
of the borrowers, including--
[(i) payment of origination or other
fees on behalf of the borrower;
[(ii) highly competitive interest
rates, or other terms and conditions or
provisions of loans under this title or
private education loans;
[(iii) high-quality servicing for
such loans; or
[(iv) additional benefits beyond the
standard terms and conditions or
provisions for such loans;]
[(D)] (C) exercise a duty of care and a duty
of loyalty to compile the preferred lender list
under this paragraph without prejudice and for
the sole benefit of the students attending the
institution, or the families of such students;
and
[(E)] (D) not deny or otherwise impede the
borrower's choice of a lender or cause
unnecessary delay in loan certification under
this title for those borrowers who choose a
lender that is not included on the preferred
lender list[; and].
[(F) comply with such other requirements as
the Secretary may prescribe by regulation.]
(2) Lender affiliates list.--
(A) In general.--The Secretary shall maintain
and regularly update a list of lender
affiliates of all eligible lenders, and shall
provide such list to institutions for use in
carrying out paragraph (1)(B).
(B) Use of most recent list.--An institution
shall use the most recent list of lender
affiliates provided by the Secretary under
subparagraph (A) in carrying out paragraph
(1)(B).
[(i)] (h) Definitions.--For the purpose of this section:
(1) Agent.--The term ``agent'' has the meaning given
the term in section 151.
(2) Affiliate.--The term ``affiliate'' means a person
that controls, is controlled by, or is under common
control with another person. A person controls, is
controlled by, or is under common control with another
person if--
(A) the person directly or indirectly, or
acting through one or more others, owns,
controls, or has the power to vote five percent
or more of any class of voting securities of
such other person;
(B) the person controls, in any manner, the
election of a majority of the directors or
trustees of such other person; or
(C) the Secretary determines (after notice
and opportunity for a hearing) that the person
directly or indirectly exercises a controlling
interest over the management or policies of
such other person's education loans.
(3) Education loan.--The term ``education loan'' has
the meaning given the term in section 151.
(4) Eligible institution.--The term ``eligible
institution'' means any such institution described in
[section 102] section 101 or 102 of this Act.
(5) Officer.--The term ``officer'' has the meaning
given the term in section 151.
(6) Preferred lender arrangement.--The term
``preferred lender arrangement'' has the meaning given
the term in section 151.
[(j)] (i) Construction.--Nothing in the amendments made by
the Higher Education Amendments of 1992 shall be construed to
prohibit an institution from recording, at the cost of the
institution, a hearing referred to in subsection (b)(2),
subsection (c)(1)(D), or subparagraph (A) or (B)(i) of
subsection (c)(2), of this section to create a record of the
hearing, except the unavailability of a recording shall not
serve to delay the completion of the proceeding. The Secretary
shall allow the institution to use any reasonable means,
including stenographers, of recording the hearing.
SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.
(a) Quality Assurance Program.--
(1) In general.--[The Secretary is authorized to] The
Secretary shall select institutions for voluntary
participation in a Quality Assurance Program that
provides participating institutions with an alternative
management approach through which individual schools
develop and implement their own comprehensive systems,
related to processing and disbursement of student
financial aid, verification of student financial aid
application data, and entrance and exit interviews,
thereby enhancing program integrity within the student
aid delivery system.
(2) Criteria and consideration.--The Quality
Assurance Program authorized by this section shall be
based on criteria that include demonstrated
institutional performance, as determined by the
Secretary, and shall take into consideration current
quality assurance goals, as determined by the
Secretary. The selection criteria shall ensure the
participation of a diverse group of institutions of
higher education with respect to size, mission, and
geographical distribution.
(3) Waiver.--The Secretary is authorized to waive for
any institution participating in the Quality Assurance
Program any regulations dealing with reporting or
verification requirements in this title that are
addressed by the institution's alternative management
system, and may substitute such quality assurance
reporting as the Secretary determines necessary to
ensure accountability and compliance with the purposes
of the programs under this title. The Secretary shall
not modify or waive any statutory requirements pursuant
to this paragraph.
(4) Determination.--The Secretary is authorized to
determine--
(A) when an institution that is unable to
administer the Quality Assurance Program shall
be removed from such program; and
(B) when institutions desiring to cease
participation in such program will be required
to complete the current award year under the
requirements of the Quality Assurance Program.
(5) Review and evaluation.--The Secretary shall
review and evaluate the Quality Assurance Program
conducted by each participating institution and, on the
basis of that evaluation, make recommendations
regarding amendments to this Act that will streamline
the administration and enhance the integrity of Federal
student assistance programs. Such recommendations shall
be submitted to the authorizing committees at least
once every two years.
(b) Regulatory Improvement and Streamlining Experiments.--
[(1) In general.--The Secretary shall continue the
voluntary participation of any experimental sites in
existence as of July 1, 2007, unless the Secretary
determines that such site's participation has not been
successful in carrying out the purposes of this
section. Any experimental sites approved by the
Secretary prior to such date that have not been
successful in carrying out the purposes of this section
shall be discontinued not later than June 30, 2010.]
[(2)] Annual Report.--(1) [The Secretary shall review
and evaluate the experience of institutions
participating as experimental sites and shall, on a
biennial basis, submit a report based on the review and
evaluation to the authorizing committees.] The
Secretary shall review the experience, and rigorously
evaluate the activities, of all institutions
participating as experimental sites and shall, on an
annual basis, submit a report based on the review and
evaluation findings to the authorizing committees. Such
report shall include--
(A) a list of participating institutions and
the specific statutory or regulatory waivers
granted to each institution;
(B) the findings and conclusions reached
regarding each of the experiments conducted;
and
(C) recommendations for amendments to improve
and streamline this Act, based on the results
of the experiment.
[(3)] (2) Selection.--
[(A) In general.--The Secretary is authorized
to periodically select a limited number of
additional institutions for voluntary
participation as experimental sites to provide
recommendations to the Secretary on the impact
and effectiveness of proposed regulations or
new management initiatives.]
(A) In general.--
(i) Experimental sites.--The
Secretary is authorized periodically to
select a limited number of institutions
for voluntary participation as
experimental sites to provide
recommendations to the Secretary and to
the Congress on the impact and
effectiveness of proposed regulations
or new management initiatives.
(ii) Congressional notice and
comments required.--
(I) Notice.--Prior to
announcing a new experimental
site and inviting institutions
to participate, the Secretary
shall provide to the
authorizing committees a notice
that shall include--
(aa) a description of
the proposed experiment
and rationale for the
proposed experiment;
and
(bb) a list of the
institutional
requirements the
Secretary expects to
waive and the legal
authority for such
waivers.
(II) Congressional
comments.--The Secretary shall
not proceed with announcing a
new experimental site and
inviting institutions to
participate until 10 days after
the Secretary--
(aa) receives and
addresses all comments
from the authorizing
committees; and
(bb) responds to such
committees in writing
with an explanation of
how such comments have
been addressed.
(iii) Prohibition.--The Secretary is
not authorized to carry out clause (i)
in any year in which an annual report
described in paragraph (2) relating to
the previous year is not submitted to
the authorizing committees.
(B) Waivers.--The Secretary is authorized to
waive, for any institution participating as an
experimental site under subparagraph (A), any
requirements in this title, including
requirements related to the award process and
disbursement of student financial aid (such as
innovative delivery systems for modular or
compressed courses, or other innovative
systems), verification of student financial aid
application data, entrance and exit interviews,
or other management procedures or processes as
determined in the negotiated rulemaking process
under section 492, or regulations prescribed
under this title, that will bias the results of
the experiment, except that the Secretary shall
not waive any provisions with respect to award
rules (other than an award rule related to an
experiment in modular or compressed schedules),
grant and loan maximum award amounts, and need
analysis requirements unless the waiver of such
provisions is authorized by another provision
under this title.
[(4)] (3) Determination of success.--For the purposes
of paragraph (1), the Secretary shall make a
determination of success regarding an institution's
participation as an experimental site based on--
(A) the ability of the experimental site to
reduce administrative burdens to the
institution, as documented in the Secretary's
[biennial] annual report under paragraph (2),
without creating costs for the taxpayer; and
(B) whether the experimental site has
improved the delivery of services to, or
otherwise benefitted, students.
(c) Definitions.--For purposes of this section, the term
``current award year'' means the award year during which the
participating institution indicates the institution's intention
to cease participation.
* * * * * * *
SEC. 488. TRANSFER OF ALLOTMENTS.
In order to offer an arrangement of types of aid, including
institutional and State aid which best fits the needs of each
individual student, an institution may (1) transfer a total of
25 percent of the institutions allotment under section 462, as
in effect on the day before the date of enactment of the
PROSPER Act, to the institution's allotment under section 413D
or 442 (or both); (2) transfer 25 percent of the institution's
allotment under section 442 to the institution's allotment
under section 413D or 462, as in effect on the day before the
date of enactment of the PROSPER Act, (or both); and (3)
transfer 25 percent of the institution's allotment under
section 413D to the institution's allotment under section 442.
Funds transferred to an institution's allotment under another
section may be used as a part of and for the same purposes as
funds allotted under that section. The Secretary shall have no
control over such transfer, except as specifically authorized,
except for the collection and dissemination of information.
* * * * * * *
SEC. 489. ADMINISTRATIVE EXPENSES.
(a) Amount of Payments.--From the sums appropriated for any
fiscal year for the purpose of the program authorized under
subpart 1 of part A, the Secretary shall reserve such sums as
may be necessary to pay to each institution with which he has
an agreement under section 487, an amount equal to $5 for each
student at that institution who receives assistance under
subpart 1 of part A. In addition, an institution which has
entered into an agreement with the Secretary under [subpart 3
of part A or part C,] part C of this title [or under part E of
this title] shall be entitled for each fiscal year which such
institution disburses funds to eligible students under any such
part to a payment for the purpose set forth in subsection (b).
The payment for a fiscal year shall be payable from each such
allotment by payment in accordance with regulations of the
Secretary and shall be equal to 5 percent of the institution's
first $2,750,000 of expenditures plus 4 percent of the
institution's expenditures greater than $2,750,000 and less
than $5,500,000, plus 3 percent of the institution's
expenditures in excess of $5,500,000 during the fiscal year
from the sum of [its grants to students under subpart 3 of part
A,] its expenditures during such fiscal year under part C for
compensation of students[, and the principal amount of loans
made during such fiscal year from its student loan fund
established under part E, excluding the principal amount of any
such loans which the institution has referred under section
463(a)(4)(B)]. In addition, the Secretary shall provide for
payment to each institution of higher education an amount equal
to 100 percent of the costs incurred by the institution in
implementing and operating the immigration status verification
system under section 484(g).
(b) Purpose of Payments.--(1) The sums paid to institutions
under this part are for the sole purpose of administering the
programs described in subsection (a).
(2) If the institution enrolls a significant number of
students who are (A) attending the institution less than full
time, or (B) independent students, the institution shall use a
reasonable proportion of the funds available under this section
for financial aid services during times and in places that will
most effectively accommodate the needs of such students.
* * * * * * *
[SEC. 491. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
[(a) Establishment and Purpose.--(1) There is established in
the Department an independent Advisory Committee on Student
Financial Assistance (hereafter in this section referred to as
the ``Advisory Committee'') which shall provide advice and
counsel to the authorizing committees and to the Secretary on
student financial aid matters.
[(2) The purpose of the Advisory Committee is--
[(A) to provide extensive knowledge and understanding
of the Federal, State, and institutional programs of
postsecondary student assistance;
[(B) to provide technical expertise with regard to
systems of needs analysis and application forms;
[(C) to make recommendations that will result in the
maintenance of access to postsecondary education for
low- and middle-income students;
[(D) to provide knowledge and understanding of early
intervention programs, and to make recommendations that
will result in early awareness by low- and moderate-
income students and families--
[(i) of their eligibility for assistance
under this title; and
[(ii) to the extent practicable, of their
eligibility for other forms of State and
institutional need-based student assistance;
[(E) to make recommendations that will expand and
improve partnerships among the Federal Government,
States, institutions of higher education, and private
entities to increase the awareness and the total amount
of need-based student assistance available to low- and
moderate-income students; and
[(F) to collect information on Federal regulations,
and on the impact of Federal regulations on student
financial assistance and on the cost of receiving a
postsecondary education, and to make recommendations to
help streamline the regulations for institutions of
higher education from all sectors.
[(b) Independence of Advisory Committee.--In the exercise of
its functions, powers, and duties, the Advisory Committee shall
be independent of the Secretary and the other offices and
officers of the Department. Notwithstanding Department of
Education policies and regulations, the Advisory Committee
shall exert independent control of its budget allocations,
expenditures and staffing levels, personnel decisions and
processes, procurements, and other administrative and
management functions. The Advisory Committee's administration
and management shall be subject to the usual and customary
Federal audit procedures. Reports, publications, and other
documents of the Advisory Committee, including such reports,
publications, and documents in electronic form, shall not be
subject to review by the Secretary. Notwithstanding Department
of Education policies and regulations, the Advisory Committee
shall exert independent control of its budget allocations and
expenditures, personnel decisions and processes, procurements,
and other administrative and management functions. The Advisory
Committee's administration and management shall be subject to
the usual and customary Federal audit procedures. The
recommendations of the Committee shall not be subject to review
or approval by any officer in the executive branch, but may be
submitted to the Secretary for comment prior to submission to
the authorizing committees in accordance with subsection (f).
The Secretary's authority to terminate advisory committees of
the Department pursuant to section 448(b) of the General
Education Provisions Act ceased to be effective on June 23,
1983.
[(c) Membership.--(1) The Advisory Committee shall consist of
11 members appointed as follows:
[(A) Four members shall be appointed by the President
pro tempore of the Senate, of whom two members shall be
appointed from recommendations by the Majority Leader
of the Senate, and two members shall be appointed from
recommendations by the Minority Leader of the Senate.
[(B) Four members shall be appointed by the Speaker
of the House of Representatives, of whom two members
shall be appointed from recommendations by the Majority
Leader of the House of Representatives, and two members
shall be appointed from recommendations by the Minority
Leader of the House of Representatives.
[(C) Three members shall be appointed by the
Secretary, of whom at least one member shall be a
student.
[(2) Each member of the Advisory Committee, with the
exception of a student member, shall be appointed on the basis
of technical qualifications, professional experience, and
demonstrated knowledge in the fields of higher education,
student financial aid, financing post-secondary education, and
the operations and financing of student loan guarantee
agencies.
[(3) The appointment of a member under subparagraph (A) or
(B) of paragraph (1) shall be effective upon publication of
such appointment in the Congressional Record.
[(d) Functions of the Committee.--The Advisory Committee
shall--
[(1) develop, review, and comment annually upon the
system of needs analysis established under part F of
this title;
[(2) monitor, apprise, and evaluate the effectiveness
of student aid delivery and recommend improvements;
[(3) recommend data collection needs and student
information requirements which would improve access and
choice for eligible students under this title and
assist the Department of Education in improving the
delivery of student aid;
[(4) assess the impact of legislative and
administrative policy proposals;
[(5) review and comment upon, prior to promulgation,
all regulations affecting programs under this title,
including proposed regulations;
[(6) recommend to the authorizing committees and to
the Secretary such studies, surveys, and analyses of
student financial assistance programs, policies, and
practices, including the special needs of low-income,
disadvantaged, and nontraditional students, and the
means by which the needs may be met;
[(7) review and comment upon standards by which
financial need is measured in determining eligibility
for Federal student assistance programs;
[(8) appraise the adequacies and deficiencies of
current student financial aid information resources and
services and evaluate the effectiveness of current
student aid information programs;
[(9) provide an annual report to the authorizing
committees that provides analyses and policy
recommendations regarding--
[(A) the adequacy of need-based grant aid for
low- and moderate-income students; and
[(B) the postsecondary enrollment and
graduation rates of low- and moderate-income
students;
[(10) develop and maintain an information
clearinghouse to help institutions of higher education
understand the regulatory impact of the Federal
Government on institutions of higher education from all
sectors, in order to raise awareness of institutional
legal obligations and provide information to improve
compliance with, and to reduce the duplication and
inefficiency of, Federal regulations; and
[(11) make special efforts to advise Members of
Congress and such Members' staff of the findings and
recommendations made pursuant to this paragraph.
[(e) Operations of the Committee.--(1) Each member of the
Advisory Committee shall be appointed for a term of 4 years,
except that, of the members first appointed--
[(A) 4 shall be appointed for a term of 1 year;
[(B) 4 shall be appointed for a term of 2 years; and
[(C) 3 shall be appointed for a term of 3 years,
as designated at the time of appointment by the Secretary.
[(2) Any member appointed to fill a vacancy occurring prior
to the expiration of the term of a predecessor shall be
appointed only for the remainder of such term. A member of the
Advisory Committee serving on the date of enactment of the
Higher Education Opportunity Act shall be permitted to serve
the duration of the member's term, regardless of whether the
member was previously appointed to more than one term.
[(3) No officers or full-time employees of the Federal
Government shall serve as members of the Advisory Committee.
[(4) The Advisory Committee shall elect a Chairman and a Vice
Chairman from among its members.
[(5) Six members of the Advisory Committee shall constitute a
quorum.
[(6) The Advisory Committee shall meet at the call of the
Chairman or a majority of its members.
[(f) Submission to Department for Comment.--The Advisory
Committee may submit its proposed recommendations to the
Department of Education for comment for a period not to exceed
30 days in each instance.
[(g) Compensation and Expenses.--Members of the Advisory
Committee may each receive reimbursement for travel expenses
incident to attending Advisory Committee meetings, including
per diem in lieu of subsistence, as authorized by section 5703
of title 5, United States Code, for persons in the Government
service employed intermittently.
[(h) Personnel and Resources.--(1) The Advisory Committee may
appoint such personnel as may be determined necessary by the
Chairman without regard to the provisions of title 5, United
States Code, governing appointments in the competitive service,
and may be paid without regard to the provisions of chapter 51
and subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates, but no
individual so appointed shall be paid in excess of the rate
authorized for GS-18 of the General Schedule. The Advisory
Committee may appoint not more than 1 full-time equivalent,
nonpermanent, consultant without regard to the provisions of
title 5, United States Code. The Advisory Committee shall not
be required by the Secretary to reduce personnel to meet agency
personnel reduction goals.
[(2) In carrying out its duties under the Act, the Advisory
Committee shall consult with other Federal agencies,
representatives of State and local governments, and private
organizations to the extent feasible.
[(3)(A) The Advisory Committee is authorized to secure
directly from any executive department, bureau, agency, board,
commission, office, independent establishment, or
instrumentality information, suggestions, estimates, and
statistics for the purpose of this section and each such
department, bureau, agency, board, commission, office,
independent establishment, or instrumentality is authorized and
directed, to the extent permitted by law, to furnish such
information, suggestions, estimates, and statistics directly to
the Advisory Committee, upon request made by the Chairman.
[(B) The Advisory Committee may enter into contracts for the
acquisition of information, suggestions, estimates, and
statistics for the purpose of this section.
[(4) The Advisory Committee is authorized to obtain the
services of experts and consultants without regard to section
3109 of title 5, United States Code and to set pay in
accordance with such section.
[(5) The head of each Federal agency shall, to the extent not
prohibited by law, cooperate with the Advisory Committee in
carrying out this section.
[(6) The Advisory Committee is authorized to utilize, with
their consent, the services, personnel, information, and
facilities of other Federal, State, local, and private agencies
with or without reimbursement.
[(i) Availability of Funds.--In each fiscal year not less
than $800,000, shall be available from the amount appropriated
for each such fiscal year from salaries and expenses of the
Department for the costs of carrying out the provisions of this
section.
[(j) Special Analyses and Activities.--The Advisory
Committee shall--
[(1) monitor and evaluate the modernization of
student financial aid systems and delivery processes
and simplifications, including recommendations for
improvement;
[(2) assess the adequacy of current methods for
disseminating information about programs under this
title and recommend improvements, as appropriate,
regarding early needs assessment and information for
first-year secondary school students;
[(3) assess and make recommendations concerning the
feasibility and degree of use of appropriate technology
in the application for, and delivery and management of,
financial assistance under this title, as well as
policies that promote use of such technology to reduce
cost and enhance service and program integrity,
including electronic application and reapplication,
just-in-time delivery of funds, reporting of
disbursements and reconciliation;
[(4) conduct a review and analysis of regulations in
accordance with subsection (l); and
[(5) conduct a study in accordance with subsection
(m).
[(k) Term of the Committee.--Notwithstanding the sunset and
charter provisions of the Federal Advisory Committee Act (5
U.S.C. App. I) or any other statute or regulation, the Advisory
Committee shall be authorized until October 1, 2015.
[(l) Review and Analysis of Regulations.--
[(1) Recommendations.--The Advisory Committee shall
make recommendations to the Secretary and the
authorizing committees for consideration of future
legislative action regarding redundant or outdated
regulations consistent with the Secretary's
requirements under section 498B.
[(2) Review and analysis of regulations.--
[(A) Review of current regulations.--To meet
the requirements of subsection (d)(10), the
Advisory Committee shall conduct a review and
analysis of the regulations issued by Federal
agencies that are in effect at the time of the
review and that apply to the operations or
activities of institutions of higher education
from all sectors. The review and analysis may
include a determination of whether the
regulation is duplicative, is no longer
necessary, is inconsistent with other Federal
requirements, or is overly burdensome. In
conducting the review, the Advisory Committee
shall pay specific attention to evaluating ways
in which regulations under this title affecting
institutions of higher education (other than
institutions described in section
102(a)(1)(C)), that have received in each of
the two most recent award years prior to the
date of enactment of the Higher Education
Opportunity Act less than $200,000 in funds
through this title, may be improved,
streamlined, or eliminated.
[(B) Review and collection of future
regulations.--The Advisory Committee shall--
[(i) monitor all Federal regulations,
including notices of proposed
rulemaking, for their impact or
potential impact on higher education;
and
[(ii) provide a succinct description
of each regulation or proposed
regulation that is generally relevant
to institutions of higher education
from all sectors.
[(C) Maintenance of public website.--The
Advisory Committee shall develop and maintain
an easy to use, searchable, and regularly
updated website that--
[(i) provides information collected
in subparagraph (B);
[(ii) provides an area for the
experts and members of the public to
provide recommendations for ways in
which the regulations may be
streamlined; and
[(iii) publishes the study conducted
by the National Research Council of the
National Academy of Sciences under
section 1106 of the Higher Education
Opportunity Act.
[(3) Consultation.--
[(A) In general.--In carrying out the review,
analysis, and development of the website
required under paragraph (2), the Advisory
Committee shall consult with the Secretary,
other Federal agencies, relevant
representatives of institutions of higher
education, individuals who have expertise and
experience with Federal regulations, and the
review panels described in subparagraph (B).
[(B) Review panels.--The Advisory Committee
shall convene not less than two review panels
of representatives of the groups involved in
higher education, including individuals
involved in student financial assistance
programs under this title, who have experience
and expertise in the regulations issued by the
Federal Government that affect all sectors of
higher education, in order to review the
regulations and to provide recommendations to
the Advisory Committee with respect to the
review and analysis under paragraph (2). The
panels shall be made up of experts in areas
such as the operations of the financial
assistance programs, the institutional
eligibility requirements for the financial
assistance programs, regulations not directly
related to the operations or the institutional
eligibility requirements of the financial
assistance programs, and regulations for
dissemination of information to students about
the financial assistance programs.
[(4) Periodic updates to the authorizing
committees.--The Advisory Committee shall--
[(A) submit, not later than two years after
the completion of the negotiated rulemaking
process required under section 492 resulting
from the amendments to this Act made by the
Higher Education Opportunity Act, a report to
the authorizing committees and the Secretary
detailing the review panels' findings and
recommendations with respect to the review of
regulations; and
[(B) provide periodic updates to the
authorizing committees regarding--
[(i) the impact of all Federal
regulations on all sectors of higher
education; and
[(ii) suggestions provided through
the website for streamlining or
eliminating duplicative regulations.
[(5) Additional support.--The Secretary and the
Inspector General of the Department shall provide such
assistance and resources to the Advisory Committee as
the Secretary and Inspector General determine are
necessary to conduct the review and analysis required
by this subsection.
[(m) Study of Innovative Pathways to Baccalaureate Degree
Attainment.--
[(1) Study required.--The Advisory Committee shall
conduct a study of the feasibility of increasing
baccalaureate degree attainment rates by reducing the
costs and financial barriers to attaining a
baccalaureate degree through innovative programs.
[(2) Scope of study.--The Advisory Committee shall
examine new and existing programs that promote
baccalaureate degree attainment through innovative
ways, such as dual or concurrent enrollment programs,
changes made to the Federal Pell Grant program,
simplification of the needs analysis process,
compressed or modular scheduling, articulation
agreements, and programs that allow two-year
institutions of higher education to offer baccalaureate
degrees.
[(3) Required aspects of the study.--In performing
the study described in this subsection, the Advisory
Committee shall examine the following aspects of such
innovative programs:
[(A) The impact of such programs on
baccalaureate attainment rates.
[(B) The degree to which a student's total
cost of attaining a baccalaureate degree can be
reduced by such programs.
[(C) The ways in which low- and moderate-
income students can be specifically targeted by
such programs.
[(D) The ways in which nontraditional
students can be specifically targeted by such
programs.
[(E) The cost-effectiveness for the Federal
Government, States, and institutions of higher
education to implement such programs.
[(4) Consultation.--
[(A) In general.--In performing the study
described in this subsection, the Advisory
Committee shall consult with a broad range of
interested parties in higher education,
including parents, students, appropriate
representatives of secondary schools and
institutions of higher education, appropriate
State administrators, administrators of dual or
concurrent enrollment programs, and appropriate
Department officials.
[(B) Consultation with the authorizing
committees.--The Advisory Committee shall
consult on a regular basis with the authorizing
committees in carrying out the study required
by this subsection.
[(5) Reports to authorizing committees.--
[(A) Interim report.--The Advisory Committee
shall prepare and submit to the authorizing
committees and the Secretary an interim report,
not later than one year after the date of
enactment of the Higher Education Opportunity
Act, describing the progress made in conducting
the study required by this subsection and any
preliminary findings on the topics identified
under paragraph (2).
[(B) Final report.--The Advisory Committee
shall, not later than three years after the
date of enactment of the Higher Education
Opportunity Act, prepare and submit to the
authorizing committees and the Secretary a
final report on the study, including
recommendations for legislative, regulatory,
and administrative changes based on findings
related to the topics identified under
paragraph (2).]
SEC. 492. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
[(a) Meetings.--
[(1) In general.--The Secretary shall obtain public
involvement in the development of proposed regulations
for this title. The Secretary shall obtain the advice
of and recommendations from individuals and
representatives of the groups involved in student
financial assistance programs under this title, such as
students, legal assistance organizations that represent
students, institutions of higher education, State
student grant agencies, guaranty agencies, lenders,
secondary markets, loan servicers, guaranty agency
servicers, and collection agencies.
[(2) Issues.--The Secretary shall provide for a
comprehensive discussion and exchange of information
concerning the implementation of this title through
such mechanisms as regional meetings and electronic
exchanges of information. The Secretary shall take into
account the information received through such
mechanisms in the development of proposed regulations
and shall publish a summary of such information in the
Federal Register together with such proposed
regulations.
[(b) Draft Regulations.--
[(1) In general.--After obtaining the advice and
recommendations described in subsection (a)(1) and
before publishing proposed regulations in the Federal
Register, the Secretary shall prepare draft regulations
implementing this title and shall submit such
regulations to a negotiated rulemaking process.
Participants in the negotiations process shall be
chosen by the Secretary from individuals nominated by
groups described in subsection (a)(1), and shall
include both representatives of such groups from
Washington, D.C., and industry participants. The
Secretary shall select individuals with demonstrated
expertise or experience in the relevant subjects under
negotiation, reflecting the diversity in the industry,
representing both large and small participants, as well
as individuals serving local areas and national
markets. The negotiation process shall be conducted in
a timely manner in order that the final regulations may
be issued by the Secretary within the 360-day period
described in section 437(e) of the General Education
Provisions Act.
[(2) Expansion of negotiated rulemaking.--All
regulations pertaining to this title that are
promulgated after the date of enactment of this
paragraph shall be subject to a negotiated rulemaking
(including the selection of the issues to be
negotiated), unless the Secretary determines that
applying such a requirement with respect to given
regulations is impracticable, unnecessary, or contrary
to the public interest (within the meaning of section
553(b)(3)(B) of title 5, United States Code), and
publishes the basis for such determination in the
Federal Register at the same time as the proposed
regulations in question are first published. All
published proposed regulations shall conform to
agreements resulting from such negotiated rulemaking
unless the Secretary reopens the negotiated rulemaking
process or provides a written explanation to the
participants in that process why the Secretary has
decided to depart from such agreements. Such negotiated
rulemaking shall be conducted in accordance with the
provisions of paragraph (1), and the Secretary shall
ensure that a clear and reliable record of agreements
reached during the negotiations process is maintained.]
(a) In General.--The Secretary may, in accordance with this
section, issue such regulations as are reasonably necessary to
ensure compliance with this title.
(b) Public Involvement.--The Secretary shall obtain public
involvement in the development of proposed regulations for this
title. Before carrying out a negotiated rulemaking process as
described in subsection (d) or publishing in the Federal
Register proposed regulations to carry out this title, the
Secretary shall obtain advice and recommendations from
individuals, and representatives of groups, involved in student
financial assistance programs under this title, such as
students, institutions of higher education, financial aid
administrators, accrediting agencies or associations, State
student grant agencies, guaranty agencies, lenders, secondary
markets, loan servicers, guaranty agency servicers, and
collection agencies.
(c) Meetings and Electronic Exchange.--
(1) In general.--The Secretary shall provide for a
comprehensive discussion and exchange of information
concerning the implementation of this title through
such mechanisms as regional meetings and electronic
exchanges of information. Such regional meetings and
electronic exchanges of information shall be public and
notice of such meetings and exchanges shall be provided
to--
(A) the authorizing committees at least 10
days prior to the notice to interested
stakeholders and the public described in
subparagraph (B); and
(B) interested stakeholders and the public at
least 30 days prior to such meetings and
exchanges.
(2) Consideration.--The Secretary shall take into
account the information received through such
mechanisms in the development of proposed regulations
and shall publish a summary of such information in the
Federal Register prior to beginning the negotiated
rulemaking process described in subsection (d).
(d) Negotiated Rulemaking Process.--
(1) Negotiated rulemaking required.--All regulations
pertaining to this title that are promulgated after the
date of the enactment of this paragraph shall be
subject to the negotiated rulemaking process described
in this subsection (including the selection of the
issues to be negotiated), unless the Secretary--
(A) determines that applying such a
requirement with respect to given regulations
is impracticable, unnecessary, or contrary to
the public interest (within the meaning of
section 553(b)(3)(B) of title 5, United States
Code);
(B) publishes the basis for such
determination in the Federal Register at the
same time as the proposed regulations in
question are first published; and
(C) includes the basis for such determination
in the congressional notice under subsection
(e)(1).
(2) Congressional notice and comments required.--
(A) Notice.--The Secretary shall provide to
the Committee on Education and the Workforce of
the House of Representatives and the Committee
on Health, Education, Labor, and Pensions of
the Senate notice of the intent establish a
negotiated rulemaking committee that shall
include--
(i) the need to issue regulations;
(ii) the statutory and legal
authority of the Secretary to regulate
the issue;
(iii) the summary of public comments
described in paragraph (2) of
subsection (c);
(iv) the anticipated burden,
including the time, cost, and paperwork
burden, the regulations will have on
institutions of higher education and
other entities that may be impacted by
the regulations; and
(v) any regulations that will be
repealed when the new regulations are
issued.
(B) Congressional comments.--The Secretary
shall not proceed with the negotiated
rulemaking process--
(i) until 10 days after the
Secretary--
(I) receives and addresses
all comments from the
authorizing committees; and
(II) responds to the
authorizing committees in
writing with an explanation of
how such comments have been
addressed; or
(ii) until 60 days after providing
the notice required under subparagraph
(A) if the Secretary has not received
comments under clause (i).
(3) Process.--After obtaining advice and
recommendations under subsections (b) and (c), and
before publishing proposed regulations, the Secretary
shall--
(A) establish a negotiated rulemaking
process;
(B) select individuals to participate in such
process--
(i) from among individuals or groups
that provided advice and
recommendations under subsections (b)
and (c), including--
(I) representatives of such
groups from Washington, D.C.;
and
(II) other industry
participants; and
(ii) with demonstrated expertise or
experience in the relevant subjects
under negotiation, reflecting the
diversity in the industry, representing
both large and small participants, as
well as individuals serving local areas
and national markets;
(C) prepare a draft of proposed policy
options, which shall take into account comments
received from both the public and the
authorizing committees, that shall be provided
to the individuals selected by the Secretary
under subparagraph (B) and such authorizing
committees not less than 15 days before the
first meeting under such process; and
(D) ensure that the negotiation process is
conducted in a timely manner in order that the
final regulations may be issued by the
Secretary within the 360-day period described
in section 437(e) of the General Education
Provisions Act (20 U.S.C. 1232(e)).
(4) Agreements and records.--
(A) Agreements.--All published proposed
regulations developed through the negotiation
process under this subsection shall conform to
all agreements resulting from such process
unless the Secretary reopens the negotiated
rulemaking process.
(B) Records.--The Secretary shall ensure that
a clear and reliable record is maintained of
agreements reached during a negotiation process
under this subsection.
(e) Proposed Rulemaking.--If the Secretary determines
pursuant to subsection (d)(1) that a negotiated rulemaking
process is impracticable, unnecessary, or contrary to the
public interest (within the meaning of section 553(b)(3)(B) of
title 5, United States Code), or the individuals selected to
participate in the process under subsection (d)(3)(B) fail to
reach unanimous agreement on an issue being negotiated, the
Secretary may propose regulations subject to subsection (f).
(f) Requirements for Proposed Regulations.--Regulations
proposed pursuant to subsection (e) shall meet the following
procedural requirements:
(1) Congressional notice.--Regardless of whether
congressional notice was submitted under subsection
(d)(2), the Secretary shall provide to the Committee on
Education and the Workforce of the House of
Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate notice that shall
include--
(A) a copy of the proposed regulations;
(B) the need to issue regulations;
(C) the statutory and legal authority of the
Secretary to regulate the issue;
(D) the anticipated burden, including the
time, cost, and paperwork burden, the
regulations will have on institutions of higher
education and other entities that may be
impacted by the regulations; and
(E) any regulations that will be repealed
when the new regulations are issued.
(2) Congressional comments.--The Secretary may not
proceed with the rulemaking process--
(A) until 10 days after the Secretary--
(i) receives and addresses all
comments from the authorizing
committees; and
(ii) responds to the authorizing
committees in writing with an
explanation of how such comments have
been addressed; or
(B) until 60 days after providing the notice
required under paragraph (1) if the Secretary
has not received comments under subparagraph
(A).
(3) Comment and review period.--The comment and
review period for the proposed regulation shall be 90
days unless an emergency requires a shorter period, in
which case such period shall be not less than 45 days
and the Secretary shall--
(A) designate the proposed regulation as an
emergency, with an explanation of the
emergency, in the notice to the Congress under
paragraph (1);
(B) publish the length of the comment and
review period in such notice and in the Federal
Register; and
(C) conduct immediately thereafter regional
meetings to review such proposed regulation
before issuing any final regulation.
(4) Independent assessment.--No regulation shall be
made final after the comment and review period until
the Secretary has published in the Federal Register an
independent assessment (which shall include a
representative sampling of institutions of higher
education based on sector, enrollment, urban, suburban,
or rural character, and other factors impacted by the
regulation) of--
(A) the burden, including the time, cost, and
paperwork burden, the final regulation will
impose on institutions and other entities that
may be impacted by the regulation;
(B) an explanation of how the entities
described in subparagraph (A) may cover the
cost of the burden assessed under such
subparagraph; and
(C) the regulation, including a thorough
assessment, based on the comments received
during the comment and review period under
paragraph (3), of whether the rule is
financially, operationally, and educationally
viable at the institutional level.
[(c)] (f) Applicability of Federal Advisory Committee Act.--
The Federal Advisory Committee Act shall not apply to
activities carried out under this section.
[(d)] (g) Authorization of Appropriations.--There are
authorized to be appropriated in any fiscal year or made
available from funds appropriated to carry out this part in any
fiscal year such sums as may be necessary to carry out the
provisions of this section, except that if no funds are
appropriated pursuant to this subsection, the Secretary shall
make funds available to carry out this section from amounts
appropriated for the operations and expenses of the Department
of Education.
* * * * * * *
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
financial 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 consolidation 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.--
Notwithstanding 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 hardship (whether or not the
borrower's loan has been submitted to a guaranty agency
for default aversion or had been in default) may elect,
during any period the borrower has the 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
payments under paragraph (1) may exceed 10 years;
(6) if the borrower no longer has a partial financial
hardship 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 consolidation loan) shall not
exceed the monthly amount calculated 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
repayment period, when the borrower
first made the election described in
this subsection;
(iii) has made payments of not less
than the payments 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-contingent 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 repayment 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
establish 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 accordance 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).
(d) Special Rule for Married Borrowers Filing Separately.--In
the case of a married borrower who files a separate Federal
income tax return, the Secretary shall calculate the amount of
the borrower's income-based repayment under this section solely
on the basis of the borrower's student loan debt and adjusted
gross income.
(e) Special Terms for New Borrowers on and After July 1,
2014.--With respect to any loan made to a new borrower on or
after July 1, 2014--
(1) subsection (a)(3)(B) shall be applied by
substituting ``10 percent'' for ``15 percent''; and
(2) subsection (b)(7)(B) shall be applied by
substituting ``20 years'' for ``25 years''.
(f) Report.--
(1) In general.--Not later than 180 days after the
date of enactment of the PROSPER Act, the Secretary
shall submit to the authorizing committees a report on
the efforts of the Department to detect and combat
fraud in the income-driven repayment plans described in
paragraph (2).
(2) Income driven repayment plans defined.--The
income-driven repayment plans described in this
paragraph are the repayment plans made available
under--
(A) this section;
(B) subparagraphs (D) and (E) of section
455(d)(1); and
(C) section 455(e).
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)] 464(c)(2)(A)(iii) (as in effect on the day
before the date of enactment of the PROSPER Act and pursuant to
section 461(a)), or 469A(a)(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 institution, 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 student status.
(b) Active Duty.--Notwithstanding section 481(d), in this
section, 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. 493E. CONTRACTS.
(a) Contracts for Supplies and Services.--
(1) In general.--The Secretary shall, to the extent
practicable, award contracts for origination,
servicing, and collection described in subsection (b).
In awarding such contracts, the Secretary shall ensure
that such services and supplies are provided at
competitive prices.
(2) Entities.--The entities with which the Secretary
may enter into contracts shall include entities
qualified to provide such services and supplies and
will comply with the procedures applicable to the award
of such contracts. In the case of awarding contracts
for the origination, servicing, and collection of loans
under parts D and E, the Secretary shall enter into
contracts with entities that have extensive and
relevant experience and demonstrated effectiveness. The
entities with which the Secretary may enter into such
contracts may include, where practicable, agencies with
agreements with the Secretary under sections 428(b) and
(c), if such agencies meet the qualifications as
determined by the Secretary under this subsection and
if those agencies have such experience and demonstrated
effectiveness. In awarding contracts to such State
agencies, the Secretary shall, to the extent
practicable and consistent with the purposes of parts D
and E, give consideration to State agencies with a
history of high quality performance to perform services
for institutions of higher education within their
State.
(3) Allocations.--
(A) In general.--Except as provided in
subparagraph (B), the Secretary shall allocate
new borrower loan accounts to entities awarded
a contract under this section on the basis of--
(i) the performance of each such
entity compared to other such entities
performing similar work using common
performance metrics (which may take
into account, as appropriate, portfolio
risk factors, including a borrower's
time in repayment, category of
institution of higher education
attended, and completion of an
educational program), as determined by
the Secretary; and
(ii) the capacity of each such entity
compared to other such entities
performing similar work to service new
and existing borrower loan accounts.
(B) Federal one consolidation loans.--Any
borrower who receives a Federal ONE
Consolidation Loan may select the entity
awarded a contract under this section to
service such loan.
(4) Rule of construction.--Nothing in this section
shall be construed as a limitation of the authority of
any State agency to enter into an agreement for the
purposes of this section as a member of a consortium of
State agencies.
(b) Contracts for Origination, Servicing, and Data Systems.--
The Secretary may enter into contracts for--
(1) the servicing and collection of loans made or
purchased under part D or E;
(2) the establishment and operation of 1 or more data
systems for the maintenance of records on all loans
made or purchased under part D or E; and
(3) such other aspects of the direct student loan
program under part D or E necessary to ensure the
successful operation of the program.
(c) Common Performance Manual.--
(1) Consultation.--Not later than 180 days after the
date of enactment of the PROSPER Act and biannually
thereafter, the Secretary shall consult (in writing and
in person) with entities awarded contracts for loan
servicing under section 456 (as in effect on the day
before the date of enactment of the PROSPER Act) and
this section, to the extent practicable, to develop and
update as necessary, a guidance manual for entities
awarded contracts for loan servicing under this section
that provides such entities with best practices to
ensure borrowers receive adequate and consistent
service from such entities.
(2) Provision of manual.--The Secretary shall provide
the most recent guidance manual developed and updated
under paragraph (1) to each entity awarded a contract
for loan serving under this section.
(3) Annual report.--The Secretary shall provide to
the authorizing committees a report, on a annual basis,
detailing the consultation required under paragraph
(1).
(d) Federal Preemption.--
(1) In general.--Covered activities shall not be
subject to any law or other requirement of any State or
political subdivision of a State with respect to--
(A) disclosure requirements;
(B) requirements or restrictions on the
content, time, quantity, or frequency of
communications with borrowers, endorsers, or
references with respect to such loans; or
(C) any other requirement relating to the
servicing or collection of a loan made under
this title.
(2) Servicing and collection.--The requirements of
this section with respect to any covered activity shall
preempt any law or other requirement of a State or
political subdivision of a State to the extent that
such law or other requirement would, in the absence of
this subsection, apply to such covered activity.
(3) State licenses.--No qualified entity engaged in a
covered activity shall be required to obtain a license
from, or pay a licensing fee or other assessment to,
any State or political subdivision of a State relating
to such covered activity.
(4) Definitions.--For purposes of this section:
(A) The term ``covered activity'' means any
of the following activities, as carried out by
a qualified entity:
(i) Origination of a loan made under
this title.
(ii) Servicing of a loan made under
this title.
(iii) Collection of a loan made under
this title.
(iv) Any other activity related to
the activities described in clauses (i)
through (iii).
(B) The term ``qualified entity'' means an
organization, other than an institution of
higher education--
(i) that is responsible for the
servicing or collection of a loan made
under this title;
(ii) that has agreement with the
Secretary under subsections (a) and (b)
of section 428; or
(iii) that is under contract with an
entity described in clause (i) or
clause (ii) to support such entity's
responsibilities under this title.
(5) Limitation.--This subsection shall not have any
legal effect on any other preemption provision under
Federal law with respect to this title.
SEC. 493F. MATCHING PROGRAM.
(a) In General.--The Secretary of Education and the Secretary
of Veterans Affairs shall carry out a computer matching program
under which the Secretary of Education identifies, on at least
a quarterly basis, borrowers--
(1) who have been assigned a disability rating of 100
percent (or a combination of ratings equaling 100
percent or more) by the Secretary of Veterans Affairs
for a service-connected disability (as defined in
section 101 of title 38, United States Code); or
(2) who have been determined by the Secretary of
Veterans Affairs to be unemployable due to a service-
connected condition, as described in section 437(a)(2).
(b) Borrower Notification.--With respect to each borrower who
is identified under subsection (a), the Secretary shall, as
soon as practicable after such identification--
(1) notify the borrower of the borrower's eligibility
for loan discharge under section 437(a); and
(2) provide the borrower with simple instructions on
how to apply for such loan discharge, including an
explanation that the borrower shall not be required to
provide any documentation of the borrower's disability
rating to receive such discharge.
(c) Data Collection and Report to Congress.--
(1) In general.--The Secretary shall annually collect
and submit to the Committees on Education and the
Workforce and Veterans' Affairs of the House of
Representatives and the Committees on Health,
Education, Labor, and Pensions and Veterans Affairs of
the Senate, data about borrowers applying for and
receiving loan discharges under section 437(a), which
shall be disaggregated in the manner described in
paragraph (2) and include the following:
(A) The number of applications received under
section 437(a).
(B) The number of such applications that were
approved.
(C) The number of loan discharges that were
completed under section 437(a).
(2) Disaggregation.--The data collected under
paragraph (1) shall be disaggregated--
(A) by borrowers who applied under this
section for loan discharges under section
437(a);
(B) by borrowers who received loan discharges
as a result of applying for such discharges
under this section;
(C) by borrowers who applied for loan
discharges under section 437(a)(2); and
(D) by borrowers who received loan discharges
as a result of applying for such discharges
under section 437(a)(2).
(d) Notification to Borrowers.--The Secretary shall notify
each borrower whose liability on a loan has been discharged
under section 437(a) that the liability on the loan has been so
discharged.
PART H--PROGRAM INTEGRITY
Subpart 1--State Role
SEC. 495. STATE RESPONSIBILITIES.
(a) State Responsibilities.--As part of the integrity program
authorized by this part, each State, through one State agency
or several State agencies selected by the State, shall--
(1) furnish the Secretary, upon request, information
with respect to the process for licensing or other
authorization for institutions of higher education to
operate within the State;
(2) notify the Secretary promptly whenever the State
revokes a license or other authority to operate an
institution of higher education; and
(3) notify the Secretary promptly whenever the State
has credible evidence that an institution of higher
education within the State--
(A) has committed fraud in the administration
of the student assistance programs authorized
by this title; or
(B) has substantially violated a provision of
this title.
[(b) Institutional Responsibility.--Each institution of
higher education shall provide evidence to the Secretary that
the institution has authority to operate within a State at the
time the institution is certified under subpart 3.]
(b) Institutional Responsibility.--Each institution of higher
education shall provide evidence to the Secretary that the
institution has authority to operate within each State in which
it maintains a physical location at the time the institution is
certified under subpart 3.
(c) Treatment of Religious Institutions.--An institution
shall be treated as legally authorized to operate educational
programs beyond secondary education in a State under section
101(a)(2) if the institution is--
(1) recognized as a religious institution by the
State; and
(2) because of the institution's status as a
religious institution, exempt from any provision of
State law that requires institutions to be authorized
by the State to operate educational programs beyond
secondary education.
Subpart 2--Accrediting Agency Recognition
SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.
(a) Criteria Required.--No accrediting agency or association
may be determined by the Secretary to be a reliable authority
as to the quality of education or training offered for the
purposes of this Act or for other Federal purposes, unless the
agency or association meets criteria established by the
Secretary pursuant to this section. The Secretary shall, after
notice and opportunity for a hearing, establish criteria for
such determinations. Such criteria shall include an appropriate
measure or measures of student achievement. Such criteria shall
require that--
(1) the accrediting agency or association shall be a
State, regional, or national agency or association and
shall demonstrate the ability and the experience to
operate as an accrediting agency or association within
the State, region, or nationally, as appropriate;
(2) such agency or association--
[(A)(i) for the purpose of participation in
programs under this Act, has a voluntary
membership of institutions of higher education
and has as a principal purpose the accrediting
of institutions of higher education; or
[(ii) for the purpose of participation in
other programs administered by the Department
of Education or other Federal agencies, has a
voluntary membership and has as its principal
purpose the accrediting of institutions of
higher education or programs;]
(A) for the purpose of participation in
programs under this Act or other programs
administered by the Department of Education or
other Federal agencies, has a voluntary
membership of institutions of higher education
or other entities and has as a principal
purpose the accrediting of institutions of
higher education or programs;
(B) is a State agency approved by the
Secretary for the purpose described in
subparagraph (A); or
(C) is an agency or association that, for the
purpose of determining eligibility for student
assistance under this title, conducts
accreditation through (i) a voluntary
membership organization of individuals
participating in a profession, or (ii) an
agency or association which has as its
principal purpose the accreditation of programs
within institutions, which institutions are
accredited by another agency or association
recognized by the Secretary;
(3) if such agency or association is an agency or
association described in--
(A) [subparagraph (A)(i)] subparagraph (A) or
(C) of paragraph (2), then such agency or
association is [separate] separately
incorporated and independent, both
administratively and financially of any
related, associated, or affiliated trade
association or membership organization; or
(B) subparagraph (B) of paragraph (2), then
such agency or association has been recognized
by the Secretary on or before October 1, 1991;
[or]
[(C) subparagraph (C) of paragraph (2) and
such agency or association has been recognized
by the Secretary on or before October 1, 1991,
then the Secretary may waive the requirement
that such agency or association is separate and
independent, both administratively and
financially of any related, associated, or
affiliated trade association or membership
organization upon a demonstration that the
existing relationship has not served to
compromise the independence of its
accreditation process;]
(4)(A) such agency or association consistently
applies and enforces standards that respect the stated
mission of the institution of higher education as
defined by the institution, including religious
missions, and that ensure that the courses or programs
of instruction, training, or study offered by the
institution of higher education[, including distance
education or correspondence courses or programs,] are
of sufficient quality to achieve, for the duration of
the accreditation period, the stated objective for
which the courses or the programs are offered; [and]
[(B) if such agency or association has or seeks to
include within its scope of recognition the evaluation
of the quality of institutions or programs offering
distance education or correspondence education, such
agency or association shall, in addition to meeting the
other requirements of this subpart, demonstrate to the
Secretary that--
[(i) the agency or association's standards
effectively address the quality of an
institution's distance education or
correspondence education in the areas
identified in paragraph (5), except that--
[(I) the agency or association shall
not be required to have separate
standards, procedures, or policies for
the evaluation of distance education or
correspondence education institutions
or programs in order to meet the
requirements of this subparagraph; and
[(II) in the case that the agency or
association is recognized by the
Secretary, the agency or association
shall not be required to obtain the
approval of the Secretary to expand its
scope of accreditation to include
distance education or correspondence
education, provided that the agency or
association notifies the Secretary in
writing of the change in scope; and
[(ii) the agency or association requires an
institution that offers distance education or
correspondence education to have processes
through which the institution establishes that
the student who registers in a distance
education or correspondence education course or
program is the same student who participates in
and completes the program and receives the
academic credit;]
(B) such agency or association demonstrates
the ability to review, evaluate, and assess the
quality of any instruction delivery model or
method such agency or association has or seeks
to include within its scope of recognition,
without giving preference to or differentially
treating a particular instruction delivery
model or method offered by an institution of
higher education or program except that, in a
case in which the instruction delivery model
allows for the separation of the student from
the instructor--
(i) the agency or association
requires the institution to have
processes through which the institution
establishes that the student who
registers in a course or program is the
same student who participates in,
including, to the extent practicable,
testing or other assessment, and
completes the program and receives the
academic credit; and
(ii) the agency or association
requires that any process used by an
institution to comply with the
requirement under clause (i) does not
infringe upon student privacy and is
implemented in a manner that is
minimally burdensome to the student;
and
(C) if such an agency or association
evaluates or assesses the quality of
competency-based education programs, the
agency's or association's evaluation or
assessment --
(i) shall address effectively the
quality of an institution's competency-
based education programs as set forth
in paragraph (5), except that the
agency or association is not required
to have separate standards, procedures,
or policies for the evaluation of
competency-based education;
(ii) shall establish whether an
institution has demonstrated that its
program satisfies the definitions in
section 103(25); and
(iii) shall establish whether an
institution has demonstrated that it
has defined an academic year for a
competency-based program in accordance
with section 481(a)(3).
[(5) the standards for accreditation of the agency or
association assess the institution's--
[(A) success with respect to student
achievement in relation to the institution's
mission, which may include different standards
for different institutions or programs, as
established by the institution, including, as
appropriate, consideration of State licensing
examinations, consideration of course
completion, and job placement rates;
[(B) curricula;
[(C) faculty;
[(D) facilities, equipment, and supplies;
[(E) fiscal and administrative capacity as
appropriate to the specified scale of
operations;
[(F) student support services;
[(G) recruiting and admissions practices,
academic calendars, catalogs, publications,
grading and advertising;
[(H) measures of program length and the
objectives of the degrees or credentials
offered;
[(I) record of student complaints received
by, or available to, the agency or association;
and
[(J) record of compliance with its program
responsibilities under title IV of this Act
based on the most recent student loan default
rate data provided by the Secretary, the
results of financial or compliance audits,
program reviews, and any such other information
as the Secretary may provide to the agency or
association;
except that subparagraphs (A), (H), and (J) shall not
apply to agencies or associations described in
paragraph (2)(A)(ii) of this subsection;]
(5) the standards for accreditation of the agency or
association assess the institution's success with
respect to student learning and educational outcomes in
relation to the institution's mission, which may
include different standards for different institutions
or programs, except that the standards shall include
consideration of student learning and educational
outcomes in relation to expected measures of student
learning and educational outcomes, which at the
agency's or association's discretion are established--
(A) by the agency or association; or
(B) by the institution or program, at the
institution or program level, as the case may
be, if the institution or program--
(i) defines expected student learning
goals and educational outcomes;
(ii) measures and evaluates student
learning, educational outcomes, and, if
appropriate, other outcomes of the
students who complete their program of
study;
(iii) uses information about student
learning, educational outcomes, and, if
appropriate, other outcomes, to improve
the institution or program; and
(iv) makes such information available
to appropriate constituencies;
(6) such an agency or association shall establish and
apply review procedures throughout the accrediting
process, including evaluation and withdrawal
proceedings, which comply with due process procedures
that provide--
(A) for adequate written specification of--
(i) requirements, including clear
standards for an institution of higher
education or program to be accredited;
and
(ii) identified deficiencies at the
institution or program examined;
(B) for sufficient opportunity for a written
response, by an institution or program,
regarding any deficiencies identified by the
agency or association to be considered by the
agency or association--
(i) within a timeframe determined by
the agency or association; and
(ii) prior to final action in the
evaluation and withdrawal proceedings;
(C) upon the written request of an
institution or program, for an opportunity for
the institution or program to appeal any
adverse action under this section, including
denial, withdrawal, suspension, or termination
of accreditation, taken against the institution
or program, prior to such action becoming final
at a hearing before an appeals panel that--
(i) shall not include current members
of the agency's or association's
underlying decisionmaking body that
made the adverse decision; and
(ii) is subject to a conflict of
interest policy;
(D) for the right to representation and
participation by counsel for an institution or
program during an appeal of the adverse action;
(E) for a process, in accordance with written
procedures developed by the agency or
association, through which an institution or
program, before a final adverse action based
solely upon a failure to meet a standard or
criterion pertaining to finances, may on one
occasion seek review of significant financial
information that was unavailable to the
institution or program prior to the
determination of the adverse action, and that
bears materially on the financial deficiencies
identified by the agency or association;
(F) in the case that the agency or
association determines that the new financial
information submitted by the institution or
program under subparagraph (E) meets the
criteria of significance and materiality
described in such subparagraph, for
consideration by the agency or association of
the new financial information prior to the
adverse action described in such subparagraph
becoming final; and
(G) that any determination by the agency or
association made with respect to the new
financial information described in subparagraph
(E) shall not be separately appealable by the
institution or program;
(7) such agency or association shall notify the
Secretary and the appropriate State licensing or
authorizing agency within 30 days of the accreditation
of an institution or any final denial, withdrawal,
suspension, or termination of accreditation or
placement on probation of an institution, together with
any other adverse action taken with respect to an
institution; and
(8) such agency or association shall make available
to the public[, upon request,] and to the Secretary,
and the State licensing or authorizing agency a summary
of any review resulting in a final accrediting decision
involving denial, termination, or suspension of
accreditation, together with the comments of the
affected institution.
(b) [Separate] Separately Incorporated and Independent
Defined.--For the purpose of subsection (a)(3), the term
``[separate] separately incorporated and independent'' means
that--
(1) the members of the postsecondary education
governing body of the accrediting agency or association
are not elected or selected by the board or chief
executive officer of any related, associated, or
affiliated trade association or membership
organization;
(2) among the membership of the board of the
accrediting agency or association there shall be one
public member (who is not a member of any related trade
or membership organization) for each six members of the
board, with a minimum of one such public member who
shall represent business, and guidelines are
established for such members to avoid conflicts of
interest;
(3) dues to the accrediting agency or association are
paid separately from any dues paid to any related,
associated, or affiliated trade association or
membership organization; and
(4) the budget of the accrediting agency or
association is developed and determined by the
accrediting agency or association without review or
resort to consultation with any other entity or
organization and is maintained separately from any such
entity or organization.
(c) Operating Procedures Required.--No accrediting agency or
association may be recognized by the Secretary as a reliable
authority as to the quality of education or training offered by
an institution seeking to participate in the programs
authorized under this title, unless the agency or association--
(1) performs, at regularly established intervals
(which may vary based on institutional risk consistent
with policies promulgated by the agency or association
to determine such risk and interval frequency as
allowed under subsection (p)), on-site inspections and
reviews of institutions of higher education (which may
include unannounced site visits) with particular focus
on educational quality and program effectiveness, and
ensures that accreditation team members are well-
trained and knowledgeable with respect to their
responsibilities, including those regarding [distance
education] competency-based education;
(2) develops a mechanism to identify institutions or
programs accredited by the agency or association that
may be experiencing difficulties accomplishing their
missions with respect to the student learning and
educational outcome goals established under subsection
(a)(5) and--
(A) as appropriate, uses information such as
student loan default or repayment rates,
retention or graduation rates, evidence of
student learning, financial data, and other
indicators to identify such institutions;
(B) not less than annually, evaluates the
extent to which those identified institutions
or programs continue to be in compliance with
the agency or association's standards; and
(C) as appropriate, requires the institution
or program to address deficiencies and ensure
that any plan to address and remedy
deficiencies is successfully implemented.
[(2)] (3) monitors the growth of programs at
institutions that are experiencing significant
enrollment growth;
[(3)] (4) requires an institution to submit for
approval to the accrediting agency a teach-out plan
upon the occurrence of any of the following events:
(A) the Department notifies the accrediting
agency of an action against the institution
pursuant to section [487(f)] 487(e);
(B) the accrediting agency acts to withdraw,
terminate, or suspend the accreditation of the
institution; or
(C) the institution notifies the accrediting
agency that the institution intends to cease
operations;
[(4) requires that any institution of higher
education subject to its jurisdiction which plans to
establish a branch campus submit a business plan,
including projected revenues and expenditures, prior to
opening the branch campus;
[(5) agrees to conduct, as soon as practicable, but
within a period of not more than 6 months of the
establishment of a new branch campus or a change of
ownership of an institution of higher education, an on-
site visit of that branch campus or of the institution
after a change of ownership;]
(5) establishes and applies or maintains policies
which ensure that any substantive change to the
educational mission, program, or programs of an
institution after the agency or association has granted
the institution accreditation or preaccreditation
status does not adversely affect the capacity of the
institution to continue to meet the agency's or
association's standards for such accreditation or
preaccreditation status, which shall include policies
that--
(A) require the institution to obtain the
agency's or association's approval of the
substantive change before the agency or
association includes the change in the scope of
the institution's accreditation or
preaccreditation status; and
(B) define substantive change to include, at
a minimum--
(i) any change in the established
mission or objectives of the
institution;
(ii) any change in the legal status,
form of control, or ownership of the
institution;
(iii) the addition of courses,
programs of instruction, training, or
study, or credentials or degrees that
represent a significant departure from
the courses, programs, or credentials
or degrees that were offered at time
the agency or association last
evaluated the institution; or
(iv) the entering into a contract
under which an institution or
organization not certified to
participate programs under title IV
provides a portion of an accredited
institution's educational program that
is greater than 25 percent;
(6) requires that teach-out agreements among
institutions are subject to approval by the accrediting
agency or association consistent with standards
promulgated by such agency or association;
(7) makes available to the public, on the agency's or
association's website, and the State licensing or
authorizing agency, and submits to the Secretary, a
summary of agency or association actions, including--
(A) the award of accreditation or
reaccreditation of an institution;
(B) final denial, withdrawal, suspension, or
termination of accreditation of an institution,
and any findings made in connection with the
action taken, together with the official
comments of the affected institution; and
(C) any other adverse action taken with
respect to an institution or placement on
probation of an institution, and a summary of
why such action was taken or such placement was
made;
(8) discloses publicly whenever an institution of
higher education subject to its jurisdiction is being
considered for accreditation or reaccreditation; [and]
(9) confirms, as a part of the agency's or
association's review for accreditation or
reaccreditation, that the institution has transfer of
credit policies--
(A) that are publicly disclosed; and
(B) that include a statement of the criteria
established by the institution regarding the
transfer of credit earned at another
institution of higher education[.];
(10) makes publicly available, on the agency or
association's website, a list of the institutions of
higher education accredited by such agency or
association, which includes, with respect to each
institution on the list---
(A) the year accreditation was granted;
(B) the most recent date of a comprehensive
evaluation of the institution under paragraph
(1); and
(C) the anticipated date of the next such
evaluation; and
(11) confirms, as a part of the agency's or
association's review for accreditation or
reaccreditation, that the institution's website
includes consumer information described section
paragraphs (1) and (2) of section 132(d).
(d) Length of Recognition.--No accrediting agency or
association may be recognized by the Secretary for the purpose
of this Act for a period of more than 5 years.
(e) Initial Arbitration Rule.--[The Secretary]
(1) In general._Subject to paragraph (2), the
Secretary may not recognize the accreditation of any
institution of higher education unless the institution
of higher education agrees to submit any dispute
involving the final denial, withdrawal, or termination
of accreditation to initial arbitration prior to any
other legal action.
(2) Exception.--Paragraph (1) shall not apply in the
case of an institution described in subsection (j).
(f) Jurisdiction.--Notwithstanding any other provision of
law, any civil action brought by an institution of higher
education seeking accreditation from, or accredited by, an
accrediting agency or association recognized by the Secretary
for the purpose of this title and involving the denial,
withdrawal, or termination of accreditation of the institution
of higher education, shall be brought in the appropriate United
States district court.
(g) Limitation on Scope of Criteria.--Nothing in this Act
shall be construed to permit the Secretary to establish
criteria for accrediting agencies or associations that are not
required by this section. Nothing in this Act shall be
construed to prohibit or limit any accrediting agency or
association from adopting additional standards not provided for
in this section. Nothing in this section shall be construed to
permit the Secretary to establish any criteria that specifies,
defines, or prescribes the standards that accrediting agencies
or associations shall use to assess any institution's success
with respect to student achievement.
[(h) Change of Accrediting Agency.--The Secretary shall not
recognize the accreditation of any otherwise eligible
institution of higher education if the institution of higher
education is in the process of changing its accrediting agency
or association, unless the eligible institution submits to the
Secretary all materials relating to the prior accreditation,
including materials demonstrating reasonable cause for changing
the accrediting agency or association.]
(h) Change of Accrediting Agency or Association.--
(1) In general.--The Secretary shall not recognize
the accreditation of any otherwise eligible institution
of higher education if the institution is in the
process of changing its accrediting agency or
association and is subject to one or more of the
following actions, unless the eligible institution
submits to the Secretary materials demonstrating a
reasonable cause for changing the accrediting agency or
association:
(A) A pending or final action brought by a
State agency to suspend, revoke, withdraw, or
terminate the institution's legal authority to
provide postsecondary education in the State.
(B) A decision by a recognized accrediting
agency or association to deny accreditation or
preaccreditation to the institution.
(C) A pending or final action brought by a
recognized accrediting agency or association to
suspend, revoke, withdraw, or terminate the
institution's accreditation or
preaccreditation.
(D) Probation or an equivalent status imposed
on the institution by a recognized accrediting
agency or association.
(2) Rule of construction.--Nothing in this subsection
shall be construed to restrict the ability of an
institution of higher education not subject to an
action described in paragraph (1) and otherwise in good
standing to change accrediting agencies or associations
without the approval of the Secretary as long as the
institution notifies the Secretary of the change.
(i) Dual Accreditation Rule.--The Secretary shall not
recognize the accreditation of any otherwise eligible
institution of higher education if the institution of higher
education is accredited, as an institution, by more than one
accrediting agency or association, unless the institution
submits to each such agency and association and to the
Secretary the reasons for accreditation by more than one such
agency or association and demonstrates to the Secretary
reasonable cause for its accreditation by more than one agency
or association. If the institution is accredited, as an
institution, by more than one accrediting agency or
association, the institution shall designate which agency's
accreditation shall be utilized in determining the
institution's eligibility for programs under this Act.
(j) Impact of Loss of Accreditation.--An institution may not
be certified or recertified as an institution of higher
education under [section 102] section 101 and subpart 3 of this
part or participate in any of the other programs authorized by
this Act if such institution--
(1) is not currently accredited by any agency or
association recognized by the Secretary;
(2) has had its accreditation withdrawn, revoked, or
otherwise terminated for cause during the preceding 24
months, unless such withdrawal, revocation, or
termination has been rescinded by the same accrediting
agency; or
(3) has withdrawn from accreditation voluntarily
under a show cause or suspension order during the
preceding 24 months, unless such order has been
rescinded by the same accrediting agency.
[(k) Religious Institution Rule.--Notwithstanding subsection
(j), the Secretary shall allow an institution that has had its
accreditation withdrawn, revoked, or otherwise terminated, or
has voluntarily withdrawn from an accreditation agency, to
remain certified as an institution of higher education under
section 102 and subpart 3 of this part for a period sufficient
to allow such institution to obtain alternative accreditation,
if the Secretary determines that the reason for the withdrawal,
revocation, or termination--
[(1) is related to the religious mission or
affiliation of the institution; and
[(2) is not related to the accreditation criteria
provided for in this section.]
(k) Religious Institution Rule.--
(1) In general.--Notwithstanding subsection (j), the
Secretary shall allow an institution that has had its
accreditation withdrawn, revoked, or otherwise
terminated, or has voluntarily withdrawn from an
accreditation agency, to remain certified as an
institution of higher education under section 101 and
subpart 3 of this part for a period sufficient to allow
such institution to obtain alternative accreditation,
if the Secretary determines that the withdrawal,
revocation, or termination--
(A) is related to the religious mission or
affiliation of the institution; and
(B) is not related to the accreditation
criteria provided for in this section.
(2) Requirements.--For purposes of this section the
following shall apply:
(A) The religious mission of an institution
may be reflected in the institution's religious
tenets, beliefs, or teachings, and any policies
or decisions related to such tenets, beliefs,
or teachings (including any policies or
decisions concerning housing, employment,
curriculum, self-governance, or student
admission, continuing enrollment, or
graduation).
(B) An agency or association's standard fails
to respect an institution's religious mission
when the institution determines that the
standard induces, pressures, or coerces the
institution to act contrary to, or to refrain
from acting in support of, any aspect of its
religious mission.
(3) Administrative complaint for failure to respect
religious mission.--
(A) In general.--
(i) Institution.--If an institution
of higher education believes that an
adverse action of an accrediting agency
or association fails to respect the
institution's religious mission in
violation of subsection (a)(4)(A), the
institution--
(I) may file a complaint with
the Secretary to require the
agency or association to
withdraw the adverse action;
and
(II) prior to filing such
complaint, shall notify the
Secretary and the agency or
association of an intent to
file such complaint not later
than 30 days after--
(aa) receiving the
adverse action from the
agency or association;
or
(bb) determining that
discussions with or the
processes of the agency
or association to
remedy the failure to
respect the religious
mission of the
institution will fail
to result in the
withdrawal of the
adverse action by the
agency or association.
(ii) Accrediting agency or
association.--Upon notification of an
intent to file a complaint and through
the duration of the complaint process
under this paragraph, the Secretary and
the accrediting agency or association
shall treat the accreditation status of
the institution of higher education as
if the adverse action for which the
institution is filing the complaint had
not been taken.
(B) Complaint.--Not later than 45 days after
providing notice of the intent to file a
complaint, the institution shall file the
complaint with the Secretary (and provide a
copy to the accrediting agency or association),
which shall include--
(i) a description of the adverse
action;
(ii) how the adverse action fails to
respect the institution's religious
mission in violation of subsection
(a)(4)(A); and
(iii) any other information the
institution determines relevant to the
complaint.
(C) Response.--
(i) In general.--The accrediting
agency or association shall have 30
days from the date the complaint is
filed with the Secretary to file with
the Secretary (and provide a copy to
the institution) a response to the
complaint, which response shall
include--
(I) how the adverse action is
based on a violation of the
agency or association's
standards for accreditation;
and
(II) how the adverse action
does not fail to respect the
religious mission of the
institution and is in
compliance with subsection
(a)(4)(A).
(ii) Burden of proof.--
(I) In general.--The
accrediting agency or
association shall bear the
burden of proving that the
agency or association has not
taken the adverse action as a
result of the institution's
religious mission, and that the
action does not fail to respect
the institution's religious
mission in violation of
subsection (a)(4)(A), by
showing that the adverse action
does not impact the aspect of
the religious claimed to be
affected in the complaint.
(II) Insufficient proof.--Any
evidence that the adverse
action results from the
application of a neutral and
generally applicable rule shall
be insufficient to prove that
the action does not fail to
respect an institution's
religious mission.
(D) Additional institution response.--The
institution shall have 15 days from the date on
which the agency or association's response is
filed with the Secretary to--
(i) file with the Secretary (and
provide a copy to the agency or
association) a response to any issues
raised in the response of the agency or
association; or
(ii) inform the Secretary and the
agency or association that the
institution elects to waive the right
to respond to the response of the
agency or association.
(E) Secretarial action.--
(i) In general.--Not later than 15
days of receipt of the institution's
response under subparagraph (D) or
notification that the institution
elects not to file a response under
such subparagraph--
(I) the Secretary shall
review the materials to
determine if the accrediting
agency or association has met
its burden of proof under
subparagraph (C)(ii)(I); or
(II) in a case in which the
Secretary fails to conduct such
review--
(aa) the Secretary
shall be deemed as
determining that the
adverse action fails to
respect the religious
mission of the
institution; and
(bb) the accrediting
agency or association
shall be required to
reverse the action
immediately and take no
further action with
respect to such adverse
action.
(ii) Review of complaint.--In
reviewing the complaint under clause
(i)(I)--
(I) the Secretary shall
consider the institution to be
correct in the assertion that
the adverse action fails to
respect the institution's
religious mission and shall
apply the burden of proof
described in subparagraph
(C)(ii)(I) with respect to the
accrediting agency or
association; and
(II) if the Secretary
determines that the accrediting
agency or association fails to
meet such burden of proof--
(aa) the Secretary
shall notify the
institution and the
agency or association
that the agency or
association is not in
compliance with
subsection (a)(4)(A),
and that such agency or
association shall carry
out the requirements of
item (bb) to be in
compliance subsection
(a)(4)(A); and
(bb) the agency or
association shall
reverse the adverse
action immediately and
take no further action
with respect to such
adverse action.
(iii) Final departmental action.--The
Secretary's determination under this
subparagraph shall be the final action
of the Department on the complaint.
(F) Rule of construction.--Nothing in this
paragraph shall prohibit--
(i) an accrediting agency or
association from taking an adverse
action against an institution of higher
education for a failure to comply with
the agency or association's standards
of accreditation as long as such
standards are in compliance with
subsection (a)(4)(A) and any other
applicable requirements of this
section; or
(ii) an institution of higher
education from exercising any other
rights to address concerns with respect
to an accrediting agency or association
or the accreditation process of an
accrediting agency or association.
(G) Guidance.--
(i) In general.--The Secretary may
only issue guidance under this
paragraph that explains or clarifies
the process for providing notice of an
intent to file a complaint or for
filing a complaint under this
paragraph.
(ii) Clarification.--The Secretary
may not issue guidance, or otherwise
determine or suggest, when discussions
to remedy the failure by an accrediting
agency or association to respect the
religious mission of an institution of
higher education referred to in
subparagraph (A)(i)(II)(bb) have failed
or will fail.
(l) Limitation, Suspension, or Termination of Recognition.--
(1) If the Secretary determines that an accrediting agency or
association has failed to apply effectively the criteria in
this section, or is otherwise not in compliance with the
requirements of this section, the Secretary shall--
(A) after notice and opportunity for a hearing,
limit, suspend, or terminate the recognition of the
agency or association; or
(B) require the agency or association to take
appropriate action to bring the agency or association
into compliance with such requirements within a
timeframe specified by the Secretary, except that--
(i) such timeframe shall not exceed 12 months
unless the Secretary extends such period for
good cause; and
(ii) if the agency or association fails to
bring the agency or association into compliance
within such timeframe, the Secretary shall,
after notice and opportunity for a hearing,
limit, suspend, or terminate the recognition of
the agency or association.
(2) The Secretary may determine that an accrediting agency or
association has failed to apply effectively the standards
provided in this section if an institution of higher education
seeks and receives accreditation from the accrediting agency or
association during any period in which the institution is the
subject of any interim action by another accrediting agency or
association, described in paragraph (2)(A)(i), (2)(B), or
(2)(C) of subsection (a) of this section, leading to the
suspension, revocation, or termination of accreditation or the
institution has been notified of the threatened loss of
accreditation, and the due process procedures required by such
suspension, revocation, termination, or threatened loss have
not been completed.
(m) Limitation on the Secretary's Authority.--The Secretary
may only recognize accrediting agencies or associations which
accredit institutions of higher education for the purpose of
enabling such institutions to establish eligibility to
participate in the programs under this Act or which accredit
institutions of higher education or higher education programs
for the purpose of enabling them to establish eligibility to
participate in other programs administered by the Department of
Education or other Federal agencies.
(n) Independent Evaluation.--(1) The Secretary shall conduct
a comprehensive review and evaluation of the performance of all
accrediting agencies or associations which seek recognition by
the Secretary in order to determine whether such accrediting
agencies or associations meet the criteria established by this
section. The Secretary shall conduct an independent evaluation
of the information provided by such agency or association. Such
evaluation shall include--
(A) the solicitation of third-party information
concerning the performance of the accrediting agency or
association; and
(B) site visits, including unannounced site visits as
appropriate, at accrediting agencies and associations,
and, at the Secretary's discretion, at representative
member institutions.
(2) The Secretary shall place a priority for review of
accrediting agencies or associations on those agencies or
associations that accredit institutions of higher education
that participate most extensively in the programs authorized by
this title and on those agencies or associations which have
been the subject of the most complaints or legal actions.
(3) The Secretary shall consider all available relevant
information concerning the compliance of the accrediting agency
or association with the criteria provided for in this section,
including any complaints or legal actions against such agency
or association. In cases where deficiencies in the performance
of an accreditation agency or association with respect to the
requirements of this section are noted, the Secretary shall
take these deficiencies into account in the recognition
process. The Secretary shall not, under any circumstances, base
decisions on the recognition or denial of recognition of
accreditation agencies or associations on criteria other than
those contained in this section. When the Secretary decides to
recognize an accrediting agency or association, the Secretary
shall determine the agency or association's scope of
recognition. If the agency or association reviews institutions
offering [distance education courses or programs] competency-
based education programs and the Secretary determines that the
agency or association meets the requirements of this section,
then the agency shall be recognized and the scope of
recognition shall include accreditation of institutions
offering [distance education courses or programs] competency-
based education programs.
(4) The Secretary shall maintain sufficient documentation to
support the conclusions reached in the recognition process,
and, if the Secretary does not recognize any accreditation
agency or association, shall make publicly available the reason
for denying recognition, including reference to the specific
criteria under this section which have not been fulfilled.
(o) Regulations.--The Secretary shall by regulation provide
procedures for the recognition of accrediting agencies or
associations and for the appeal of the Secretary's decisions.
Notwithstanding any other provision of law, the Secretary shall
not promulgate any regulation with respect to the standards of
an accreditation agency or association described in subsection
(a)(5), or with respect to the policies and procedures of an
accreditation agency or association described in paragraph (2)
or (5) of subsection (c) or how the agency or association
carries out such policies and procedures.
[(p) Rule of Construction.--Nothing in subsection (a)(5)
shall be construed to restrict the ability of--
[(1) an accrediting agency or association to set,
with the involvement of its members, and to apply,
accreditation standards for or to institutions or
programs that seek review by the agency or association;
or
[(2) an institution to develop and use institutional
standards to show its success with respect to student
achievement, which achievement may be considered as
part of any accreditation review.
[(q) Review of Scope Changes.--The Secretary shall require a
review, at the next available meeting of the National Advisory
Committee on Institutional Quality and Integrity, of any change
in scope undertaken by an agency or association under
subsection (a)(4)(B)(i)(II) if the enrollment of an institution
that offers distance education or correspondence education that
is accredited by such agency or association increases by 50
percent or more within any one institutional fiscal year.]
(p) Risk-based or Differentiated Review Processes or
Procedures.--
(1) In general.--Notwithstanding any other provision
of law (including subsection (a)(4)(A)), an accrediting
agency or association may establish, with the
involvement of its membership, risk-based or
differentiated review processes or procedures for
assessing compliance with the accrediting agency or
association's standards, including policies related to
substantive change and award of accreditation statuses,
for institutions of higher education or programs that
have demonstrated exceptional past performance with
respect to meeting the accrediting agency or
association's standards.
(2) Prohibition.--Risk-based or differentiated review
processes or procedures shall not discriminate against,
or otherwise preclude, institutions of higher education
based on institutional sector or category, including an
institution of higher education's tax status.
(3) Rule of construction.--Nothing in this subsection
shall be construed to permit the Secretary to establish
any criterion that specifies, defines, or prescribes an
accrediting agency or association's risk-based or
differentiated review process or procedure.
(q) Waiver.--The Secretary shall establish a process through
which an agency or association may seek to have a requirement
of this subpart waived, if such agency or association--
(1) demonstrates that such waiver is necessary to
enable an institution of higher education or program
accredited by the agency or association to implement
innovative practices intended to--
(A) reduce administrative burdens to the
institution or program without creating costs
for the taxpayer; or
(B) improve the delivery of services to
students, improve instruction or learning
outcomes, or otherwise benefit students; and
(2) describes the terms and conditions that will be
placed upon the program or institution to ensure
academic integrity and quality.
Subpart 3--Eligibility and Certification Procedures
SEC. 498. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) General Requirement.--[For purposes of]
(1) In general._For purposes of qualifying
institutions of higher education for participation in
programs under this title, the Secretary shall
determine, subject to paragraph (2), the legal
authority to operate within a State, the accreditation
status, and the administrative capability and financial
responsibility of an institution of higher education in
accordance with the requirements of this section.
(2) Special rule.--The determination of whether an
institution of higher education is legally authorized
to operate in a State under section 101(a)(2) shall be
based solely on that State's laws.
(b) Single Application Form.--The Secretary shall prepare and
prescribe a single application form which--
(1) requires sufficient information and documentation
to determine that the requirements of eligibility,
accreditation, financial responsibility, and
administrative capability of the institution of higher
education are met;
(2) requires a specific description of the
relationship between a main campus of an institution of
higher education and all of its branches, including a
description of the student aid processing that is
performed by the main campus and that which is
performed at its branches;
(3) requires--
(A) a description of the third party
servicers of an institution of higher
education; and
(B) the institution to maintain a copy of any
contract with a financial aid service provider
or loan servicer, and provide a copy of any
such contract to the Secretary upon request;
(4) requires such other information as the Secretary
determines will ensure compliance with the requirements
of this title with respect to eligibility,
accreditation, administrative capability and financial
responsibility; and
(5) provides, at the option of the institution, for
participation in one or more of the programs under part
[B or D] E.
[(c) Financial Responsibility Standards.--(1) The Secretary
shall determine whether an institution has the financial
responsibility required by this title on the basis of whether
the institution is able--
[(A) to provide the services described in its
official publications and statements;
[(B) to provide the administrative resources
necessary to comply with the requirements of this
title; and
[(C) to meet all of its financial obligations,
including (but not limited to) refunds of institutional
charges and repayments to the Secretary for liabilities
and debts incurred in programs administered by the
Secretary.
[(2) Notwithstanding paragraph (1), if an institution fails
to meet criteria prescribed by the Secretary regarding ratios
that demonstrate financial responsibility, then the institution
shall provide the Secretary with satisfactory evidence of its
financial responsibility in accordance with paragraph (3). Such
criteria shall take into account any differences in generally
accepted accounting principles, and the financial statements
required thereunder, that are applicable to for-profit, public,
and nonprofit institutions. The Secretary shall take into
account an institution's total financial circumstances in
making a determination of its ability to meet the standards
herein required.
[(3) The Secretary shall determine an institution to be
financially responsible, notwithstanding the institution's
failure to meet the criteria under paragraphs (1) and (2), if--
[(A) such institution submits to the Secretary third-
party financial guarantees that the Secretary
determines are reasonable, such as performance bonds or
letters of credit payable to the Secretary, which
third-party financial guarantees shall equal not less
than one-half of the annual potential liabilities of
such institution to the Secretary for funds under this
title, including loan obligations discharged pursuant
to section 437, and to students for refunds of
institutional charges, including funds under this
title;
[(B) such institution has its liabilities backed by
the full faith and credit of a State, or its
equivalent;
[(C) such institution establishes to the satisfaction
of the Secretary, with the support of a financial
statement audited by an independent certified public
accountant in accordance with generally accepted
auditing standards, that the institution has sufficient
resources to ensure against the precipitous closure of
the institution, including the ability to meet all of
its financial obligations (including refunds of
institutional charges and repayments to the Secretary
for liabilities and debts incurred in programs
administered by the Secretary); or
[(D) such institution has met standards of financial
responsibility, prescribed by the Secretary by
regulation, that indicate a level of financial strength
not less than those required in paragraph (2).]
(c) Financial Responsibility Standards.--(1) The Secretary
shall determine whether an institution has the financial
responsibility required by this title in accordance with
paragraph (2).
(2) An institution shall be determined to be financially
responsible by the Secretary, as required by this title, if the
institution is able to provide the services described in its
official publications and statements, is able to provide the
administrative resources necessary to comply with the
requirements of this title, and meets one of the following
conditions:
(A) Such institution has its liabilities backed by
the full faith and credit of a State, or its
equivalent.
(B) Such institution has a bond credit quality rating
of investment grade or higher from a recognized credit
rating agency.
(C) Such institution has expendable net assets equal
to not less than one-half of the annual potential
liabilities of such institution to the Secretary for
funds under this title, including loan obligations
discharged pursuant to section 437, and to students for
refunds of institutional charges, including funds under
this title, as calculated by an independent certified
public accountant in accordance with generally accepted
auditing standards.
(D) Such institution establishes, with the support of
a financial statement audited by an independent
certified public accountant in accordance with
generally accepted auditing standards, that the
institution has sufficient resources to ensure against
the precipitous closure of the institution, including
the ability to meet all of its financial obligations
(including refunds of institutional charges and
repayments to the Secretary for liabilities and debts
incurred in programs administered by the Secretary).
(E) Such institution has met criteria, prescribed by
the Secretary by regulation in accordance with
paragraph (3), that--
(i) establish ratios that demonstrate
financial responsibility in accordance with
generally accepted auditing standards as
described in paragraph (7);
(ii) incorporate the procedures described in
paragraph (4);
(iii) establish consequences for failure to
meet the criteria described in paragraph (5);
and
(iv) take into account any differences in
generally accepted accounting principles, and
the financial statements required thereunder,
that are applicable to for-profit, public, and
nonprofit institutions.
(3) The criteria prescribed pursuant to paragraph (2)(E)
shall provide that the Secretary shall--
(A) not later than 6 months after an institution that
is subject to the requirements of paragraph (2)(E) has
submitted its annual financial statement, provide to
such institution a notification of its preliminary
score under such paragraph;
(B) provide to each such institution a description of
the method used, and complete copies of all the
calculations performed, to determine the institution's
score, if such institution makes a request for such
information within 45 days after receiving the notice
under subparagraph (A);
(C) within 60 days of receipt by an institution of
the information described in subparagraph (B)--
(i) allow the institution to correct or cure
an administrative, accounting, or recordkeeping
error if the error is not part of a pattern of
errors and there is no evidence of fraud or
misconduct related to the error;
(ii) if the institution demonstrates that the
Secretary has made errors in its determination
of the initial score or has used non-standard
accounting practices in reaching its
determination, notify the institution that its
composite score has been corrected; and
(iii) take into consideration any subsequent
change in the institution's overall fiscal
health that would raise the institution's
score;
(D) maintain and preserve at all times the
confidentiality of any review until such score is
determined to be final; and
(E) make a determination regarding whether the
institution has met the standards of financial
responsibility based on an audited and certified
financial statement of the institution as described in
paragraph (7).
(4) If the Secretary determines, after conducting an initial
review, that the institution has not met at least one of the
conditions described in subparagraphs (A) through (E) of
paragraph (2) but has otherwise met the requirements of such
paragraph--
(A) the Secretary shall request information relating
to such conditions for any affiliated or parent
organization, company, or foundation owning or owned by
the institution; and
(B) if such additional information demonstrates that
an affiliated or parent organization, company, or
foundation owning or owned by the institution meets at
least one of the conditions describe in subparagraphs
(A) through (E) of paragraph (2), the institution shall
be determined to be financially responsible as required
by this title.
(5) The Secretary shall establish policies and procedures to
address an institution's failure to meet the criteria of
paragraph (2) which shall include policies and procedures
that--
(A) require an institution that fails to meet the
criteria for three consecutive years to provide to the
Secretary a financial plan;
(B) provide for additional oversight and cash
monitoring restrictions, as appropriate;
(C) allow an institution to submit to the Secretary
third-party financial guarantees that the Secretary
determines are reasonable, such as performance bonds or
letters of credit payable to the Secretary, except that
an institution may not be required to obtain a letter
of credit in order to be deemed financially responsible
unless--
(i) the institution has been deemed not to be
a going concern, as determined by an
independent certified public accountant in
accordance with generally accepted auditing
standards;
(ii) the institution is determined by the
Secretary to be at risk of precipitous closure
when the full financial resources of the
institution, including the value of the
institution's expendable endowment, are
considered; or
(iii) the institution is determined by the
Secretary to be at risk of not meeting all of
its financial obligations, including refunds of
institutional charges and repayments to the
Secretary for liabilities and debts incurred in
programs administered by the Secretary; and
(D) provide for the removal of all requirements
related to the institution's failure to meet the
criteria once the criteria are met.
[(4)] (6) If an institution of higher education that provides
a 2-year or 4-year program of instruction for which the
institution awards an associate or baccalaureate degree fails
to meet the criteria imposed by the Secretary pursuant to
paragraph (2), the Secretary shall waive that particular
requirement for that institution if the institution
demonstrates to the satisfaction of the Secretary that--
(A) there is no reasonable doubt as to its continued
solvency and ability to deliver quality educational
services;
(B) it is current in its payment of all current
liabilities, including student refunds, repayments to
the Secretary, payroll, and payment of trade creditors
and withholding taxes; and
(C) it has substantial equity in school-occupied
facilities, the acquisition of which was the direct
cause of its failure to meet the criteria.
[(5)] (7) The determination as to whether an institution has
met the standards of financial responsibility provided for in
[paragraphs (2) and (3)(C)] paragraph (2) shall be based on an
audited and certified financial statement of the institution.
Such audit shall be conducted by a qualified independent
organization or person in accordance with standards established
by the American Institute of Certified Public Accountants. Such
statement shall be submitted to the Secretary at the time such
institution is considered for certification or recertification
under this section. If the institution is permitted to be
certified (provisionally or otherwise) and such audit does not
establish compliance with paragraph (2), the Secretary may
require that additional audits be submitted.
[(6)] (8)(A) The Secretary shall establish requirements for
the maintenance by an institution of higher education of
sufficient cash reserves to ensure repayment of any required
refunds.
(B) The Secretary shall provide for a process under which the
Secretary shall exempt an institution of higher education from
the requirements described in subparagraph (A) if the Secretary
determines that the institution--
(i) is located in a State that has a tuition recovery
fund that ensures that the institution meets the
requirements of subparagraph (A);
(ii) contributes to the fund; and
(iii) otherwise has legal authority to operate within
the State.
(d) Administrative Capacity Standard.--The Secretary is
authorized--
(1) to establish procedures and requirements relating
to the administrative capacities of institutions of
higher education, including--
(A) consideration of past performance of
institutions or persons in control of such
institutions with respect to student aid
programs; and
(B) maintenance of records; and
(2) to establish such other reasonable procedures as
the Secretary determines will contribute to ensuring
that the institution of higher education will comply
with administrative capability required by this title.
(e) Financial Guarantees From Owners.--(1) Notwithstanding
any other provision of law, the Secretary may, to the extent
necessary to protect the financial interest of the United
States, require--
(A) financial guarantees from an institution
participating, or seeking to participate, in a program
under this title, or from one or more individuals who
the Secretary determines, in accordance with paragraph
(2), exercise substantial control over such
institution, or both, in an amount determined by the
Secretary to be sufficient to satisfy the institution's
potential liability to the Federal Government, student
assistance recipients, and other program participants
for funds under this title; and
(B) the assumption of personal liability, by one or
more individuals who exercise substantial control over
such institution, as determined by the Secretary in
accordance with paragraph (2), for financial losses to
the Federal Government, student assistance recipients,
and other program participants for funds under this
title, and civil and criminal monetary penalties
authorized under this title.
(2)(A) The Secretary may determine that an individual
exercises substantial control over one or more institutions
participating in a program under this title if the Secretary
determines that--
(i) the individual directly or indirectly controls a
substantial ownership interest in the institution;
(ii) the individual, either alone or together with
other individuals, represents, under a voting trust,
power of attorney, proxy, or similar agreement, one or
more persons who have, individually or in combination
with the other persons represented or the individual
representing them, a substantial ownership interest in
the institution; or
(iii) the individual is a member of the board of
directors, the chief executive officer, or other
executive officer of the institution or of an entity
that holds a substantial ownership interest in the
institution.
(B) The Secretary may determine that an entity exercises
substantial control over one or more institutions participating
in a program under this title if the Secretary determines that
the entity directly or indirectly holds a substantial ownership
interest in the institution.
(3) For purposes of this subsection, an ownership interest is
defined as a share of the legal or beneficial ownership or
control of, or a right to share in the proceeds of the
operation of, an institution or institution's parent
corporation. An ownership interest may include, but is not
limited to--
(A) a sole proprietorship;
(B) an interest as a tenant-in-common, joint tenant,
or tenant by the entireties;
(C) a partnership; or
(D) an interest in a trust.
(4) The Secretary shall not impose the requirements described
in subparagraphs (A) and (B) of paragraph (1) on an institution
that--
(A) has not been subjected to a limitation,
suspension, or termination action by the Secretary or a
guaranty agency within the preceding 5 years;
(B) has not had, during its 2 most recent audits of
the institutions conduct of programs under this title,
an audit finding that resulted in the institution being
required to repay an amount greater than 5 percent of
the funds the institution received from programs under
this title for any year;
(C) meets and has met, for the preceding 5 years, the
financial responsibility standards under subsection
(c); and
(D) has not been cited during the preceding 5 years
for failure to submit audits required under this title
in a timely fashion.
(5) For purposes of section 487(c)(1)(G), this section shall
also apply to individuals or organizations that contract with
an institution to administer any aspect of an institution's
student assistance program under this title.
(6) Notwithstanding any other provision of law, any
individual who--
(A) the Secretary determines, in accordance with
paragraph (2), exercises substantial control over an
institution participating in, or seeking to participate
in, a program under this title;
(B) is required to pay, on behalf of a student or
borrower, a refund of unearned institutional charges to
a lender, or to the Secretary; and
(C) willfully fails to pay such refund or willfully
attempts in any manner to evade payment of such refund,
shall, in addition to other penalties provided by law, be
liable to the Secretary for the amount of the refund not paid,
to the same extent with respect to such refund that such an
individual would be liable as a responsible person for a
penalty under section 6672(a) of Internal Revenue Code of 1986
with respect to the nonpayment of taxes.
(f) Actions on Applications and Site Visits.--The Secretary
shall ensure that prompt action is taken by the Department on
any application required under subsection (b). The personnel of
the Department of Education may conduct a site visit at each
institution before certifying or recertifying its eligibility
for purposes of any program under this title. The Secretary
shall establish priorities by which institutions are to receive
site visits, and shall, to the extent practicable, coordinate
such visits with site visits by States, guaranty agencies, and
accrediting bodies in order to eliminate duplication, and
reduce administrative burden.
(g) Time Limitations on, and Renewal of, Eligibility.--
(1) General rule.--After the expiration of the
certification of any institution under the schedule
prescribed under this section (as this section was in
effect prior to the enactment of the Higher Education
Act Amendments of 1998), or upon request for initial
certification from an institution not previously
certified, the Secretary may certify the eligibility
for the purposes of any program authorized under this
title of each such institution for a period not to
exceed 6 years.
(2) Notification.--The Secretary shall notify each
institution of higher education not later than 6 months
prior to the date of the expiration of the
institution's certification.
(3) Institutions outside the united states.--The
Secretary shall promulgate regulations regarding the
recertification requirements applicable to an
institution of higher education outside of the United
States that meets the requirements of [section
102(a)(1)(C)] section 102(a)(1) and received less than
$500,000 in funds under [part B] part D or E for the
most recent year for which data are available.
(h) Provisional Certification of Institutional Eligibility.--
(1) Notwithstanding subsections (d) and (g), the Secretary may
provisionally certify an institution's eligibility to
participate in programs under this title--
(A) for not more than one complete award year in the
case of an institution of higher education seeking an
initial certification; and
(B) for not more than 3 complete award years if--
(i) the institution's administrative
capability and financial responsibility is
being determined for the first time;
(ii) there is a complete or partial change of
ownership, as defined under subsection (i), of
an eligible institution; or
(iii) the Secretary determines that an
institution that seeks to renew its
certification is, in the judgment of the
Secretary, in an administrative or financial
condition that may jeopardize its ability to
perform its financial responsibilities under a
program participation agreement.
(2) Whenever the Secretary withdraws the recognition of any
accrediting agency, an institution of higher education which
meets the requirements of accreditation, eligibility, and
certification on the day prior to such withdrawal, the
Secretary may, notwithstanding the withdrawal, continue the
eligibility of the institution of higher education to
participate in the programs authorized by this title for a
period not to exceed [18] 36 months from the date of the
withdrawal of recognition.
(3) If, prior to the end of a period of provisional
certification under this subsection, the Secretary determines
that the institution is unable to meet its responsibilities
under its program participation agreement, the Secretary may
terminate the institution's participation in programs under
this title.
(i) Treatment of Changes of Ownership.--(1) An eligible
institution of higher education that has had a change in
ownership resulting in a change of control shall not qualify to
participate in programs under this title after the change in
control (except as provided in paragraph (3)) unless it
establishes that it meets the requirements of [section 102
(other than the requirements in subsections (b)(5) and (c)(3))]
sections 101 (other than the requirements in subsections
(b)(1)(A) and (b)(2)) and 102 and this section after such
change in control.
(2) An action resulting in a change in control may include
(but is not limited to)--
(A) the sale of the institution or the majority of
its assets;
(B) the transfer of the controlling interest of stock
of the institution or its parent corporation;
(C) the merger of two or more eligible institutions;
(D) the division of one or more institutions into two
or more institutions;
(E) the transfer of the controlling interest of stock
of the institutions to its parent corporation; or
(F) the transfer of the liabilities of the
institution to its parent corporation.
(3) An action that may be treated as not resulting in a
change in control includes (but is not limited to)--
(A) the sale or transfer, upon the death of an owner
of an institution, of the ownership interest of the
deceased in that institution to a family member or to a
person holding an ownership interest in that
institution; or
(B) another action determined by the Secretary to be
a routine business practice.
(4)(A) The Secretary may provisionally certify an institution
seeking approval of a change in ownership based on the
preliminary review by the Secretary of a materially complete
application that is received by the Secretary within 10
business days of the transaction for which the approval is
sought.
(B) A provisional certification under this paragraph shall
expire not later than the end of the month following the month
in which the transaction occurred, except that if the Secretary
has not issued a decision on the application for the change of
ownership within that period, the Secretary may continue such
provisional certification on a month-to-month basis until such
decision has been issued.
(j) Treatment of Branches.--(1) A branch of an eligible
institution of higher education, as defined pursuant to
regulations of the Secretary, shall be certified under this
subpart before it may participate as part of such institution
in a program under this title, except that such branch shall
not be required to [meet the requirements of sections
102(b)(1)(E) and 102(c)(1)(C)] meet the requirements to be
considered an institution of higher education under sections
101(b)(1)(A) and 101(b)(2) prior to seeking such certification.
Such branch is required to be in existence at least 2 years
after the branch is certified by the Secretary as a branch
campus participating in a program under this title, prior to
seeking certification as a main campus or free-standing
institution.
(2) The Secretary may waive the requirement of section
101(a)(2) for a branch that (A) is not located in a State, (B)
is affiliated with an eligible institution, and (C) was
participating in one or more programs under this title on or
before January 1, 1992.
(k) Treatment of Teach-Outs at Additional Locations.--
(1) In general.--A location of a closed institution
of higher education shall be eligible as an additional
location of an eligible institution of higher
education, as defined pursuant to regulations of the
Secretary, for the purposes of a teach-out described in
section [487(f)] 487(e), if such teach-out has been
approved by the institution's accrediting agency.
(2) Special rule.--An institution of higher education
that conducts a teach-out through the establishment of
an additional location described in paragraph (1) shall
be permitted to establish a permanent additional
location at a closed institution and shall not be
required--
(A) to [meet the requirements of sections
102(b)(1)(E) and 102(c)(1)(C)] meet the
requirements to be considered an institution of
higher education under sections 101(b)(1)(A)
and 101(b)(2) for such additional location; or
(B) to assume the liabilities of the closed
institution.
SEC. 498A. PROGRAM REVIEW AND DATA.
(a) General Authority.--In order to strengthen the
administrative capability and financial responsibility
provisions of this title, the Secretary--
(1) shall provide for the conduct of program reviews
on a systematic basis designed to include all
institutions of higher education participating in
programs authorized by this title;
(2) shall give priority for program review to
institutions of higher education that are--
(A) institutions with a cohort default rate
for loans under [part B of] this title in
excess of 25 percent or which places such
institutions in the highest 25 percent of such
institutions, or after the transition period
described in section 481B(e)(3), institutions
in which 25 percent or more of the educational
programs have a loan repayment rate (defined in
section 481B(c)) for the most recent fiscal
year of less than 50 percent;
(B) institutions with a default rate in
dollar volume for loans under [part B of] this
title which places the institutions in the
highest 25 percent of such institutions, except
that this subparagraph shall not apply after
the transition period described in section
481B(e)(3);
(C) institutions with a significant
fluctuation in Federal Stafford Loan volume,
Federal Direct Stafford/Ford Loan volume,
Federal ONE Loan volume, or Federal Pell Grant
award volume, or any combination thereof, in
the year for which the determination is made,
compared to the year prior to such year, that
are not accounted for by changes in the Federal
Stafford Loan program, the Federal Direct
Stafford/Ford Loan program, Federal ONE Loan
program, or the Pell Grant program, or any
combination thereof;
(D) institutions reported to have
deficiencies or financial aid problems by the
State licensing or authorizing agency, or by
the appropriate accrediting agency or
association;
(E) institutions with high annual dropout
rates; and
(F) such other institutions that the
Secretary determines may pose a significant
risk of failure to comply with the
administrative capability or financial
responsibility provisions of this title; and
(3) shall establish and operate a central data base
of information on institutional accreditation,
eligibility, and certification that includes--
(A) all relevant information available to the
Department;
(B) all relevant information made available
by the Secretary of Veterans Affairs;
(C) all relevant information from accrediting
agencies or associations;
(D) all relevant information available from a
guaranty agency; and
(E) all relevant information available from
States under subpart 1.
(b) Special Administrative Rules.--In carrying out paragraphs
(1) and (2) of subsection (a) and any other relevant provisions
of this title, the Secretary shall--
(1) establish guidelines designed to ensure
uniformity of practice in the conduct of program
reviews of institutions of higher education;
(2) make available to each institution participating
in programs authorized under this title complete copies
of all review guidelines and procedures used in program
reviews;
(3) as practicable, provide a written explanation to
the institution of higher education detailing the
Secretary's reasons for initiating the program review
which, if applicable, shall include references to
specific criteria under subsection (a)(2);
[(3)] (4) permit the institution to correct or cure
an administrative, accounting, or recordkeeping error
if the error is not part of a pattern of error and
there is no evidence of fraud or misconduct related to
the error;
[(4)] (5) base any civil penalty assessed against an
institution of higher education resulting from a
program review or audit on the gravity of the
violation, failure, or misrepresentation;
[(5)] (6) inform the appropriate State and
accrediting agency or association whenever the
Secretary takes action against an institution of higher
education under this section, section 498, or section
432;
[(6)] (7) provide to an institution of higher
education an adequate opportunity to review and respond
to any program review report and relevant materials
related to the report before any final program review
report is issued;
[(7)] (8) review and take into consideration an
institution of higher education's response in any final
program review report or audit determination, and
include in the report or determination--
(A) a written statement addressing the
institution of higher education's response;
(B) a written statement of the basis for such
report or determination; and
(C) a copy of the institution's response; and
[(8)] (9) maintain and preserve at all times the
confidentiality of any program review report until the
requirements of [paragraphs (6) and (7)] paragraphs (7)
and (8) are met, and until a final program review is
issued, other than to the extent required to comply
with [paragraph (5)] paragraph (6), except that the
Secretary shall promptly disclose any and all program
review reports to the institution of higher education
under review.
(c) Data Collection Rules.--The Secretary shall develop and
carry out a plan for the data collection responsibilities
described in paragraph (3) of subsection (a). The Secretary
shall make the information obtained under such paragraph (3)
readily available to all institutions of higher education,
guaranty agencies, States, and other organizations
participating in the programs authorized by this title.
(d) Training.--The Secretary shall provide training to
personnel of the Department, including criminal investigative
training, designed to improve the quality of financial and
compliance audits and program reviews conducted under this
title.
(e) Special Rule.--The provisions of section 103(b) of the
Department of Education Organization Act shall not apply to
Secretarial determinations made regarding the appropriate
length of instruction for programs measured in clock hours.
(f) Time Limit on Program Review Activities.--In conducting,
responding to, and concluding program review activities, the
Secretary shall--
(1) provide to the institution the initial report
finding not later than 90 days after concluding an
initial site visit;
(2) upon each receipt of an institution's response
during a program review inquiry, respond in a
substantive manner within 90 days;
(3) upon each receipt of an institution's written
response to a draft final program review report,
provide the final program review report and
accompanying enforcement actions, if any, within 90
days; and
(4) conclude the entire program review process not
later than 2 years after the initiation of a program
review, unless the Secretary determines that such a
review is sufficiently complex and cannot reasonably be
concluded before the expiration of such 2-year period,
in which case the Secretary shall promptly notify the
institution of the reasons for such delay and provide
an anticipated date for conclusion of the review.
SEC. 498B. REVIEW OF REGULATIONS.
(a) Review Required.--The Secretary shall review each
regulation issued under this title that is in effect at the
time of the review and applies to the operations or activities
of any participant in the programs assisted under this title.
The review shall include a determination of whether the
regulation is duplicative, or is no longer necessary. The
review may involve one or more of the following:
(1) An assurance of the uniformity of interpretation
and application of such regulations.
(2) The establishment of a process for ensuring that
eligibility and compliance issues, such as
institutional audit, program review, and
recertification, are considered simultaneously.
(3) A determination of the extent to which
unnecessary costs are imposed on institutions of higher
education as a consequence of the applicability to the
facilities and equipment of such institutions of
regulations prescribed for purposes of regulating
industrial and commercial enterprises.
(b) Regulatory and Statutory Relief for Small Volume
Institutions.--The Secretary shall review and evaluate ways in
which regulations under and provisions of this Act affecting
institution of higher education (other than institutions
described in [section 102(a)(1)(C)] section 102(a)(1)), that
have received in each of the two most recent award years prior
to the date of the enactment of the Higher Education Amendments
of 1998 less than $200,000 in funds through this title, may be
improved, streamlined, or eliminated.
(c) Consultation.--In carrying out subsections (a) and (b),
the Secretary shall consult with relevant representatives of
institutions participating in the programs authorized by this
title.
* * * * * * *
TITLE V--DEVELOPING INSTITUTIONS
PART A--HISPANIC-SERVING INSTITUTIONS
* * * * * * *
SEC. 502. DEFINITIONS; ELIGIBILITY.
(a) Definitions.--For the purpose of this title:
(1) Educational and general expenditures.--The term
``educational and general expenditures'' means the
total amount expended by an [institution for
instruction] institution of higher education for
instruction, research, public service, academic support
(including library expenditures), student services,
institutional support, scholarships and fellowships,
operation and maintenance expenditures for the physical
plant, and any mandatory transfers that the institution
is required to pay by law.
(2) Eligible institution.--The term ``eligible
institution'' means--
(A) an institution of higher education--
(i) that has an enrollment of needy
students as required by subsection (b);
(ii) except as provided in section
522(b), the average educational and
general expenditures of which are low,
per full-time equivalent undergraduate
student, in comparison with the average
educational and general expenditures
per full-time equivalent undergraduate
student of institutions that offer
similar instruction;
(iii) that is--
(I) legally authorized to
provide, and provides within
the State, an educational
program for which the
institution awards a bachelor's
degree; or
(II) a junior or community
college;
(iv) that is accredited by a
nationally recognized accrediting
agency or association determined by the
Secretary to be reliable authority as
to the quality of training offered or
that is, according to such an agency or
association, making reasonable progress
toward accreditation;
[(vi)] (v) that is located in a State
(as defined in section 103(20)(A)); and
[(v)] (vi) that meets such other
requirements as the Secretary may
prescribe; [and]
(B) any branch of any institution of higher
education described under subparagraph (A) that
by itself satisfies the requirements contained
in clauses (i) and (ii) of such
subparagraph[.]; and
(C) except as provided in section 522(b), an
institution that has a completion rate of at
least 25 percent that is calculated by--
(i) counting a student as completed
if that student graduated within 150
percent of the normal time for
completion; or
(ii) counting a student as completed
if that student enrolled into another
program at an institution for which the
previous program provided substantial
preparation within 150 percent of
normal time for completion.
For purposes of the determination of whether an
institution is an eligible institution under this
paragraph, the factor described under subparagraph
(A)(i) shall be given twice the weight of the factor
described under subparagraph (A)(ii).
(3) Endowment fund.--The term ``endowment fund''
means a fund that--
(A) is established by State law, by a
Hispanic-serving institution, or by a
foundation that is exempt from Federal income
taxation;
(B) is maintained for the purpose of
generating income for the support of the
institution; and
(C) does not include real estate.
(4) Full-time equivalent students.--The term ``full-
time equivalent students'' means the sum of the number
of students enrolled full time at an institution, plus
the full-time equivalent of the number of students
enrolled part time (determined on the basis of the
quotient of the sum of the credit hours of all part-
time students divided by 12) at such institution.
(5) Hispanic-serving institution.--The term
``Hispanic-serving institution'' means an institution
of higher education that--
(A) is an eligible institution; and
(B) has an enrollment of undergraduate full-
time equivalent students that is at least 25
percent Hispanic students at the end of the
award year immediately preceding the date of
application.
(6) Junior or community college.--The term ``junior
or community college'' means an institution of higher
education--
(A) that admits as regular students persons
who are beyond the age of compulsory school
attendance in the State in which the
institution is located and who have the ability
to benefit from the training offered by the
institution;
(B) that does not provide an educational
program for which the institution awards a
bachelor's degree (or an equivalent degree);
and
(C) that--
(i) provides an educational program
of not less than 2 years in duration
that is acceptable for full credit
toward such a degree; or
(ii) offers a 2-year program in
engineering, mathematics, or the
physical or biological sciences,
designed to prepare a student to work
as a technician or at the
semiprofessional level in engineering,
scientific, or other technological
fields requiring the understanding and
application of basic engineering,
scientific, or mathematical principles
of knowledge.
(b) Enrollment of Needy Students.--For the purpose of this
title, the term ``enrollment of needy students'' means an
enrollment at an institution with respect to which--
(1) at least 50 percent of the degree students so
enrolled are receiving need-based assistance under
title IV in the second fiscal year preceding the fiscal
year for which the determination is made (other than
loans for which an interest subsidy is paid pursuant to
section 428); or
(2) a substantial percentage of the students so
enrolled are receiving Federal Pell Grants in the
second fiscal year preceding the fiscal year for which
the determination is made, compared to the percentage
of students receiving Federal Pell Grants at all such
institutions in the second fiscal year preceding the
fiscal year for which the determination is made, unless
the requirement of this paragraph is waived under
section 522(a).
SEC. 503. AUTHORIZED ACTIVITIES.
(a) Types of Activities Authorized.--Grants awarded under
this title shall be used by Hispanic-serving institutions of
higher education to assist the institutions to plan, develop,
undertake, and carry out programs to improve and expand the
institutions' capacity to serve Hispanic students and other
low-income students.
(b) Authorized Activities.--Grants awarded under this section
shall be used for one or more of the following activities:
(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
(2) Construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and
other instructional facilities.
(3) Support of faculty exchanges, faculty
development, curriculum development, academic
instruction, and faculty fellowships to assist in
attaining advanced degrees in the fellow's field of
instruction.
(4) Purchase of library books, periodicals, and other
educational materials, including telecommunications
program material.
(5) Tutoring, [counseling, and] counseling, advising,
and student service programs designed to improve
academic success, including innovative and customized
instruction courses (which may include remedial
education and English language instruction) designed to
help retain students and move the students rapidly into
core courses and through program completion.
(6) Articulation agreements and student support
programs designed to facilitate the transfer from two-
year to four-year institutions.
(7) Funds management, administrative management, and
acquisition of equipment for use in strengthening
[funds management] funds and administrative management.
(8) Joint use of facilities, such as laboratories and
libraries.
(9) Establishing or improving a development office to
strengthen or improve contributions from alumni and the
private sector.
(10) Establishing or improving an endowment fund.
(11) [Creating or improving facilities for Internet
or other distance education technologies,] Innovative
learning models and creating or improving facilities
for Internet or other innovative technologies,
including purchase or rental of telecommunications
technology equipment or services.
(12) Establishing or enhancing a program of teacher
education designed to qualify students to teach in
public elementary schools and secondary schools.
(13) Establishing community outreach programs that
will encourage elementary school and secondary school
students to develop the academic skills and the
interest to pursue postsecondary education.
(14) Expanding the number of Hispanic and other
underrepresented graduate and professional students
that can be served by the institution by expanding
courses and institutional resources.
(15) Providing education, counseling services, or
financial information designed to improve the financial
literacy and economic literacy of students or the
students' families, especially with regard to student
indebtedness and student assistance programs under
title IV.
(16) The development, coordination, implementation,
or improvement of career and technical education
programs (as defined in section 135 of the Carl D.
Perkins Career and Technical Education Act of 2006 (20
U.S.C. 2355)).
(17) Alignment and integration of career and
technical education programs with programs of study
leading to a bachelor's degree, graduate degree, or
professional degree.
(18) Developing or expanding access to dual or
concurrent enrollment programs and early college high
school programs.
(19) Pay for success initiatives that improve time to
completion and increase graduation rates.
[(16)] (20) Other activities proposed in the
application submitted pursuant to section 504 that--
(A) contribute to carrying out the purposes
of this title; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
(c) Endowment Fund Limitations.--
(1) Portion of grant.--A Hispanic-serving institution
may not use more than 20 percent of the grant funds
provided under this title for any fiscal year for
establishing or improving an endowment fund.
(2) Matching required.--A Hispanic-serving
institution that uses any portion of the grant funds
provided under this title for any fiscal year for
establishing or improving an endowment fund shall
provide from non-Federal funds an amount equal to or
greater than the portion.
(3) Comparability.--The provisions of part C of title
III regarding the establishment or increase of an
endowment fund, that the Secretary determines are not
inconsistent with this subsection, shall apply to funds
used under paragraph (1).
(4) Scholarship.--An institution that uses grant
funds provided under this part to establish or increase
an endowment fund may use the income from such
endowment fund to provide scholarships to students for
the purposes of attending such institution, subject to
the limitation in section 331(c)(3)(B)(i).
SEC. 504. DURATION OF GRANT.
[(a) Award Period.--The Secretary may award a grant to a
Hispanic-serving institution under this title for 5 years.]
(a) Award period.--The Secretary may award a grant to a
Hispanic-serving institution under this part for a period of 5
years. Any funds awarded under this part that are not expended
or used, before the date that is 10 years after the date on
which the grant was awarded, for the purposes for which the
funds were paid shall be repaid to the Treasury.
(b) Planning Grants.--Notwithstanding subsection (a), the
Secretary may award a grant to a Hispanic-serving institution
under this title for a period of 1 year for the purpose of
preparation of plans and applications for a grant under this
title.
SEC. 505. SPECIAL RULE.
No Hispanic-serving institution that is eligible for and
receives funds under [this title] this part may receive funds
under part A or B of title III during the period for which
funds under [this title] this part are awarded.
PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC
AMERICANS
* * * * * * *
SEC. 513. AUTHORIZED ACTIVITIES.
Grants awarded under this part shall be used for one or more
of the following activities:
[(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
[(2) Construction, maintenance, renovation, and
improvement of classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services.
[(3) Purchase of library books, periodicals,
technical and other scientific journals, microfilm,
microfiche, and other educational materials, including
telecommunications program materials.]
(1) The activities described in (1) through (4),
(11), and (19) of section 503(b).
[(4)] (2) Support for low-income postbaccalaureate
students including outreach, academic support services,
mentoring, scholarships, fellowships, and other
financial assistance to permit the enrollment of such
students in postbaccalaureate certificate and
postbaccalaureate degree granting programs.
[(5)] (3) Support of faculty exchanges, faculty
development, faculty research, curriculum development,
and academic instruction.
[(6)] (4) [Creating or improving facilities for
Internet or other distance education technologies,]
Innovative learning models and creating or improving
facilities for Internet or other innovative
technologies, including purchase or rental of
telecommunications technology equipment or services.
[(7)] (5) Collaboration with other institutions of
higher education to expand postbaccalaureate
certificate and postbaccalaureate degree offerings.
[(8)] (6) Other activities proposed in the
application submitted pursuant to section 514 that--
(A) contribute to carrying out the purposes
of this part; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
SEC. 514. APPLICATION AND DURATION.
(a) Application.--Any eligible institution may apply for a
grant under this part by submitting an application to the
Secretary at such time and in such manner as the Secretary may
require. Such application shall demonstrate how the grant funds
will be used to improve postbaccalaureate education
opportunities for Hispanic and low-income students.
[(b) Duration.--Grants under this part shall be awarded for a
period not to exceed five years.]
(b) Duration.--The Secretary may award a grant to a Hispanic-
serving institution under this part for a period of 5 years.
Any funds awarded under this part that are not expended or used
for the purposes for which the funds were paid within 10 years
following the date on which the grant was awarded shall be
repaid to the Treasury.
(c) Limitation.--The Secretary may not award more than one
grant under this part in any fiscal year to any Hispanic-
serving institution.
(d) Special Rule.--No Hispanic-serving institution that is
eligible for and receives funds under this part may receive
funds under part A or B of title III during the period for
which funds under this part are awarded.
PART C--GENERAL PROVISIONS
SEC. 521. ELIGIBILITY; APPLICATIONS.
(a) Institutional Eligibility.--Each Hispanic-serving
institution desiring to receive assistance under this title
shall submit to the Secretary such enrollment data as may be
necessary to demonstrate that the institution is a Hispanic-
serving institution as defined in section 502, along with such
other data and information as the Secretary may by regulation
require.
(b) Applications.--
(1) Applications required.--Any institution which is
eligible for assistance under this title shall submit
to the Secretary an application for assistance at such
time, in such form, and containing such information, as
may be necessary to enable the Secretary to evaluate
the institution's need for assistance. Subject to the
availability of appropriations to carry out this title,
the Secretary may approve an application for a grant
under this title only if the Secretary determines
that--
(A) the application meets the requirements of
subsection (c); and
(B) the institution is eligible for
assistance in accordance with the provisions of
this title under which the assistance is
sought.
(2) Preliminary applications.--In carrying out
paragraph (1), the Secretary may develop a preliminary
application for use by Hispanic-serving institutions
applying under this title prior to the submission of
the principal application.
(c) Contents.--A Hispanic-serving institution, in the
institution's application for a grant, shall--
(1) set forth, or describe how the institution will
develop, a comprehensive development plan to strengthen
the institution's academic quality and institutional
management, and otherwise provide for institutional
self-sufficiency and growth (including measurable
objectives for the institution and the Secretary to use
in monitoring the effectiveness of activities under
this title);
(2) include a 5-year plan for improving the
assistance provided by the Hispanic-serving institution
to Hispanic students and other low-income individuals;
(3) set forth policies and procedures to ensure that
Federal funds made available under this title for any
fiscal year will be used to supplement and, to the
extent practical, increase the funds that would
otherwise be made available for the purposes of section
501(b), and in no case supplant those funds;
(4) set forth policies and procedures for evaluating
the effectiveness in accomplishing the purpose of the
activities for which a grant is sought under this
title;
(5) provide for such fiscal control and fund
accounting procedures as may be necessary to ensure
proper disbursement of and accounting for funds made
available to the institution under this title;
(6) provide that the institution will comply with the
limitations set forth in section 526;
(7) describe in a comprehensive manner any proposed
project for which funds are sought under the
application and include--
(A) a description of the various components
of the proposed project, including the
estimated time required to complete each such
component;
(B) in the case of any development project
that consists of several components (as
described by the institution pursuant to
subparagraph (A)), a statement identifying
those components which, if separately funded,
would be sound investments of Federal funds and
those components which would be sound
investments of Federal funds only if funded
under this title in conjunction with other
parts of the development project (as specified
by the institution);
[(C) an evaluation by the institution of the
priority given any proposed project for which
funds are sought in relation to any other
projects for which funds are sought by the
institution under this title, and a similar
evaluation regarding priorities among the
components of any single proposed project (as
described by the institution pursuant to
subparagraph (A));]
[(D)] (C) a detailed budget showing the
manner in which funds for any proposed project
would be spent by the institution; and
[(E)] (D) a detailed description of any
activity which involves the expenditure of more
than $25,000, as identified in the budget
referred to in [subparagraph (D)] subparagraph
(C);
(8) provide for making reports, in such form and
containing such information, as the Secretary may
require to carry out the Secretary's functions under
this title, including not less than one report annually
setting forth the institution's progress toward
achieving the objectives for which the funds were
awarded and for keeping such records and affording such
access to such records, as the Secretary may find
necessary to assure the correctness and verification of
such reports; and
(9) include such other information as the Secretary
may prescribe.
(d) Priority.--With respect to applications for assistance
under this section, the Secretary shall give priority to an
application that contains satisfactory evidence that the
Hispanic-serving institution has entered into or will enter
into a collaborative arrangement with at least one local
educational agency or community-based organization to provide
such agency or organization with assistance (from funds other
than funds provided under this title) in reducing dropout rates
for Hispanic students, improving rates of academic achievement
for Hispanic students, and increasing the rates at which
Hispanic secondary school graduates enroll in higher education.
(e) Eligibility Data.--The Secretary shall use the most
recent and relevant data concerning the number and percentage
of students receiving need-based assistance under title IV in
making eligibility determinations and shall advance the base-
year for the determinations forward following each annual grant
cycle.
SEC. 522. WAIVER AUTHORITY AND REPORTING REQUIREMENT.
(a) Waiver Requirements; Need-Based Assistance Students.--The
Secretary may waive the requirements set forth in section
502(a)(2)(A)(i) in the case of an institution--
(1) that is extensively subsidized by the State in
which the institution is located and charges low or no
tuition;
(2) that serves a substantial number of low-income
students as a percentage of the institution's total
student population;
(3) that is contributing substantially to increasing
higher education opportunities for educationally
disadvantaged, underrepresented, or minority students,
who are low-income individuals;
(4) which is substantially increasing higher
educational opportunities for individuals in rural or
other isolated areas which are unserved by
postsecondary institutions; or
(5) wherever located, if the Secretary determines
that the waiver will substantially increase higher
education opportunities appropriate to the needs of
Hispanic Americans.
(b) Waiver Determinations; Expenditures; Completion Rates.--
(1) Waiver determinations.--The Secretary may waive
the requirements set forth in section 502(a)(2)(A)(ii)
or 502(a)(2)(C) if the Secretary determines, based on
persuasive evidence submitted by the institution, that
the institution's failure to meet the requirements is
due to factors which, when used in the determination of
compliance with the requirements, distort such
determination, and that the institution's designation
as an eligible institution under part A is otherwise
consistent with the purposes of this title.
(2) Expenditures and completion rates.--The Secretary
shall submit to Congress every other year a report
concerning the institutions that, although not
satisfying the requirements of section 502(a)(2)(A)(ii)
or 502(a)(2)(C), have been determined to be eligible
institutions under part A. Such report shall--
(A) identify the factors referred to in
paragraph (1) that were considered by the
Secretary as factors that distorted the
determination of compliance with clauses (i)
and (ii) of section 502(a)(2)(A) or section
502(a)(2)(C); and
(B) contain a list of each institution
determined to be an eligible institution under
part A including a statement of the reasons for
each such determination.
* * * * * * *
SEC. 524. COOPERATIVE ARRANGEMENTS.
(a) General Authority.--The Secretary may make grants to
encourage cooperative arrangements with funds available to
carry out this title, between Hispanic-serving institutions
eligible for assistance under this title, and between such
institutions and institutions not receiving assistance under
this title, for the activities described in sections 503 and
513 so that the resources of the cooperating institutions might
be combined and shared in order to achieve the purposes of this
title, to avoid costly duplicative efforts, and to enhance the
development of Hispanic-serving institutions.
(b) Priority.--The Secretary shall give priority to grants
for the purposes described under subsection (a) whenever the
Secretary determines that the cooperative arrangement is
geographically and economically sound or will benefit the
applicant Hispanic-serving institution.
(c) Duration.--Grants to Hispanic-serving institutions having
a cooperative arrangement may be made under this section for a
period determined under [section 505] section 504.
* * * * * * *
SEC. 528. AUTHORIZATIONS OF APPROPRIATIONS.
(a) Authorizations.--
(1) Parts a and c.--There are authorized to be
appropriated to carry out [parts A and C $175,000,000
for fiscal year 2009 and such sums as may be necessary
for each of the five succeeding fiscal years.] parts A
and C, $107,795,000 for each of fiscal years 2019
through 2024.
(2) Part b.--There are authorized to be appropriated
to carry out [part B $100,000,000 for fiscal year 2009
and such sums as may be necessary for each of the five
succeeding fiscal years.] part B, $9,671,000 for each
of fiscal years 2019 through 2024.
(b) Use of Multiple Year Awards.--In the event of a multiple
year award to any Hispanic-serving institution under this
title, the Secretary shall make funds available for such award
from funds appropriated for this title for the fiscal year in
which such funds are to be used by the institution.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES
* * * * * * *
SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND
PROGRAMS.
(a) National Language and Area Centers and Programs
Authorized.--
(1) Centers and programs.--
(A) In general.--The Secretary is authorized
to make grants to institutions of higher
education or consortia of such institutions for
the purpose of establishing, strengthening, and
operating--
(i) comprehensive foreign language
and area or international studies
centers and programs; and
(ii) a diverse network of
undergraduate foreign language and area
or international studies centers and
programs.
(B) National resources.--The centers and
programs referred to in paragraph (1) shall be
national resources for--
(i) teaching of any modern foreign
language;
(ii) instruction in fields needed to
provide full understanding of areas,
regions, or countries in which such
language is commonly used;
(iii) research and training in
international studies, and the
international and foreign language
aspects of professional and other
fields of study; and
(iv) instruction and research on
issues in world affairs that concern
one or more countries.
(2) Authorized activities.--Any such grant may be
used to pay all or part of the cost of establishing or
operating a center or program, including the cost of--
(A) teaching and research materials;
(B) curriculum planning and development;
(C) establishing and maintaining linkages
with overseas institutions of higher education
and other organizations that may contribute to
the teaching and research of the center or
program;
(D) bringing visiting scholars and faculty to
the center to teach or to conduct research;
(E) professional development of the center's
faculty and staff;
(F) projects conducted in cooperation with
other centers addressing themes of world
regional, cross-regional, international, or
global importance;
(G) summer institutes in the United States or
abroad designed to provide language and area
training in the center's field or topic;
(H) support for faculty, staff, and student
travel in foreign areas, regions, or countries,
and for the development and support of
educational programs abroad for students;
(I) supporting instructors of the less
commonly taught languages; and
(J) projects that support students in the
science, technology, engineering, and
mathematics fields to achieve foreign language
proficiency.
(3) Grants to maintain library collections.--The
Secretary may make grants to centers described in
paragraph (1) having important library collections, as
determined by the Secretary, for the maintenance of
such collections.
(4) Outreach grants and summer institutes.--The
Secretary may make additional grants to centers
described in paragraph (1) for any one or more of the
following purposes:
(A) Programs of linkage or outreach between
foreign language, area studies, or other
international fields, and professional schools
and colleges.
(B) Programs of linkage or outreach with 2-
and 4-year colleges and universities.
(C) Programs of linkage or outreach between
or among--
(i) postsecondary programs or
departments in foreign language, area
studies, or other international fields;
and
(ii) State educational agencies or
local educational agencies.
(D) Partnerships or programs of linkage and
outreach with departments or agencies of
Federal and State governments, including
Federal or State scholarship programs for
students in related areas.
(E) Programs of linkage or outreach with the
news media, business, professional, or trade
associations.
(F) Summer institutes in area studies,
foreign language, and other international
fields designed to carry out the programs
described in subparagraphs (A), (B), (C), (D),
and (E).
(b) Fellowships for Foreign Language and Area or
International Studies.--
(1) In general.--The Secretary is authorized to make
grants to institutions of higher education or
combinations of such institutions for the purpose of
paying stipends to individuals undergoing advanced
training in any center or program approved by the
Secretary.
(2) Eligible students.--A student receiving a stipend
described in paragraph (1) shall be engaged--
(A) in an instructional program with stated
performance goals for functional foreign
language use or in a program developing such
performance goals, in combination with area
studies, international studies, or the
international aspects of a professional studies
program; and
(B)(i) in the case of an undergraduate
student, in the intermediate or advanced study
of a less commonly taught language; or
(ii) in the case of a graduate student, in
graduate study in connection with a program
described in subparagraph (A), including--
(I) predissertation level study;
(II) preparation for dissertation
research;
(III) dissertation research abroad;
or
(IV) dissertation writing.
(c) Special Rule With Respect to Travel.--No funds may be
expended under this part for undergraduate travel except in
accordance with rules prescribed by the Secretary setting forth
policies and procedures to assure that Federal funds made
available for such travel are expended as part of a formal
program of supervised study.
(d) Allowances.--
(1) Graduate level recipients.--A stipend awarded to
a graduate level recipient may include allowances for
dependents and for travel for research and study in the
United States and abroad.
(2) Undergraduate level recipients.--A stipend
awarded to an undergraduate level recipient may include
an allowance for educational programs in the United
States or educational programs abroad that--
(A) are closely linked to the overall goals
of the recipient's course of study; and
(B) have the purpose of promoting foreign
language fluency and knowledge of foreign
cultures.
[(e) Application.--] [Each institution] (e) Application._
(1) Submission; contents._Each institution of higher
education or consortium of such institutions desiring a
grant under this section shall submit an application to
the Secretary at such time, in such manner, and
accompanied by such information and assurances as the
Secretary may require. Each such application shall
include--
[(1)] (A) an explanation of how the
activities funded by the grant will reflect
diverse perspectives and a wide range of views
and generate debate on world regions and
international affairs; and
[(2)] (B) a description of how the applicant
will encourage government service in areas of
national need, as identified by the Secretary,
as well as in areas of need in the education,
business, and nonprofit sectors.
(2) Approval.--The Secretary may approve an
application for a grant if an institution, in its
application, provides adequate assurances that it will
comply with paragraph (1)(A). The Secretary shall use
the requirement of paragraph (1)(A) as part of the
application evaluation, review, and approval process
when determining grant recipients for initial funding
and continuation awards.
* * * * * * *
[SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE
PROGRAMS.
[(a) Incentives for the Creation of New Programs and the
Strengthening of Existing Programs in Undergraduate
International Studies and Foreign Language Programs.--
[(1) Authority.--The Secretary is authorized to make
grants to institutions of higher education, consortia
of such institutions, or partnerships between nonprofit
educational organizations and institutions of higher
education, to assist such institutions, consortia or
partnerships in planning, developing, and carrying out
programs to improve undergraduate instruction in
international studies and foreign languages. Such
grants shall be awarded to institutions, consortia or
partnerships seeking to create new programs or to
strengthen existing programs in foreign languages, area
studies, and other international fields.
[(2) Use of funds.--Grants made under this section
may be used for the Federal share of the cost of
projects and activities which are an integral part of
such a program, such as--
[(A) planning for the development and
expansion of undergraduate programs in
international studies and
foreign languages;
[(B) teaching, research, curriculum
development,
faculty training in the United States or
abroad, and other related activities,
including--
[(i) the expansion of library and
teaching resources; and
[(ii) pre-service teacher training
and in-service teacher professional
development;
[(C) expansion of opportunities for learning
foreign languages, including less commonly
taught languages;
[(D) programs under which foreign teachers
and scholars may visit institutions as visiting
faculty;
[(E) programs designed to develop or enhance
linkages between 2- and 4-year institutions of
higher education, or baccalaureate and post-
baccalaureate programs or institutions;
[(F) the development of undergraduate
educational programs--
[(i) in locations abroad where such
opportunities are not otherwise
available or that serve students for
whom such opportunities are not
otherwise available; and
[(ii) that provide courses that are
closely related to on-campus foreign
language and international curricula;
[(G) the integration of new and continuing
education abroad opportunities for
undergraduate students into curricula of
specific degree programs;
[(H) the development of model programs to
enrich or enhance the effectiveness of
educational programs abroad, including
predeparture and postreturn programs, and the
integration of educational programs abroad into
the curriculum of the home institution;
[(I) the provision of grants for educational
programs abroad that--
[(i) are closely linked to the
program's overall goals; and
[(ii) have the purpose of promoting
foreign language fluency and knowledge
of world regions;
[(J) the development of programs designed to
integrate professional and technical education
with foreign languages, area studies, and other
international fields;
[(K) the establishment of linkages overseas
with institutions of higher education and
organizations that contribute to the
educational programs assisted under this
subsection;
[(L) the conduct of summer institutes in
foreign area, foreign language, and other
international fields to provide faculty and
curriculum development, including the
integration of professional and technical
education with foreign area and other
international studies, and to provide foreign
area and other international knowledge or
skills to government personnel or private
sector professionals in international
activities;
[(M) the development of partnerships
between--
[(i) institutions of higher
education; and
[(ii) the private sector, government,
or elementary and secondary education
institutions,
in order to enhance international knowledge and
skills; and
[(N) the use of innovative technology to
increase access to international education
programs.
[(3) Non-federal share.--The non-Federal share of the
cost of the programs assisted under this subsection--
[(A) may be provided in cash from the private
sector corporations or foundations in an amount
equal to one-third of the total cost of the
programs assisted under this section; or
[(B) may be provided as an in-cash or in-kind
contribution from institutional and
noninstitutional funds, including State and
private sector corporation or foundation
contributions, equal to one-half of the total
cost of the programs assisted under this
section.
[(4) Special rule.--The Secretary may waive or reduce
the required non-Federal share for institutions that--
[(A) are eligible to receive assistance under
part A or B of title III or under title V; and
[(B) have submitted a grant application under
this section that demonstrates a need for a
waiver or reduction.
[(5) Priority.--In awarding grants under this
section, the Secretary shall give priority to
applications from institutions of higher education,
consortia or partnerships that require entering
students to have successfully completed at least 2
years of secondary school foreign language instruction
or that require each graduating student to earn 2 years
of postsecondary credit in a foreign language (or have
demonstrated equivalent competence in the foreign
language) or, in the case of a 2-year degree granting
institution, offer 2 years of postsecondary credit in a
foreign language.
[(6) Grant conditions.--Grants under this subsection
shall reflect the purposes of this part and be made on
such conditions as the Secretary determines to be
necessary to carry out this subsection.
[(7) Application.--Each application for assistance
under this subsection shall include--
[(A) evidence that the applicant has
conducted extensive planning prior to
submitting the application;
[(B) an assurance that the faculty and
administrators of all relevant departments and
programs served by the applicant are involved
in ongoing collaboration with regard to
achieving the stated objectives of the
application;
[(C) an assurance that students at the
applicant institutions, as appropriate, will
have equal access to, and derive benefits from,
the program assisted under this subsection;
[(D) an assurance that each applicant,
consortium, or partnership will use the Federal
assistance provided under this subsection to
supplement and not supplant non-Federal funds
the institution expends for programs to improve
undergraduate instruction in international
studies and foreign languages;
[(E) a description of how the applicant will
provide information to students regarding
federally funded scholarship programs in
related areas;
[(F) an explanation of how the activities
funded by the grant will reflect diverse
perspectives and a wide range of views and
generate debate on world regions and
international affairs, where applicable; and
[(G) a description of how the applicant will
encourage service in areas of national need, as
identified by the Secretary.
[(8) Evaluation.--The Secretary may establish
requirements for program evaluations and require grant
recipients to submit annual reports that evaluate the
progress and performance of students participating in
programs assisted under this subsection.
[(b) Programs of National Significance.--The Secretary may
also award grants to public and private nonprofit agencies and
organizations, including professional and scholarly
associations, whenever the Secretary determines such grants
will make an especially significant contribution to improving
undergraduate international studies and foreign language
programs.
[(c) Funding Support.--
[(1) In general.--The Secretary may use not more than
20 percent of the total amount appropriated for this
part for carrying out the purposes of this section.
[(2) Grantees.--Of the total amount of grant funds
awarded to a grantee under this section, the grantee
may use not more than ten percent of such funds for the
activity described in subsection (a)(2)(I).]
SEC. [605.] 604. RESEARCH; STUDIES; ANNUAL REPORT.
(a) Authorized Activities.--The Secretary may, directly or
through grants or contracts, conduct research and studies that
contribute to achieving the purposes of this part. Such
research and studies may include--
(1) studies and surveys to determine needs for
increased or improved instruction in foreign language,
area studies, or other international fields, including
the demand for foreign language, area, and other
international specialists in government, education, and
the private sector;
(2) studies and surveys to assess the utilization of
graduates of programs supported under this title by
governmental, educational, and private sector
organizations and other studies assessing the outcomes
and effectiveness of programs so supported;
(3) evaluation of the extent to which programs
assisted under this title that address national needs
would not otherwise be offered;
(4) comparative studies of the effectiveness of
strategies to provide international capabilities at
institutions of higher education;
(5) research on more effective methods of providing
instruction and achieving competency in foreign
languages, area studies, or other international fields;
(6) the development and publication of specialized
materials for use in foreign language, area studies,
and other international fields, or for training foreign
language, area, and other international specialists;
(7) studies and surveys of the uses of technology in
foreign language, area studies, and international
studies programs;
(8) studies and evaluations of effective practices in
the dissemination of international information,
materials, research, teaching strategies, and testing
techniques throughout the education community,
including elementary and secondary schools;
(9) the application of performance tests and
standards across all areas of foreign language
instruction and classroom use;
(10) evaluation of the extent to which programs
assisted under this title reflect diverse perspectives
and a wide range of views and generate debate on world
regions and international affairs, as described in the
grantee's application;
(11) the systematic collection, analysis, and
dissemination of data that contribute to achieving the
purposes of this part; and
(12) support for programs or activities to make data
collected, analyzed, or disseminated under this section
publicly available and easy to understand.
(b) Annual Report.--The Secretary shall prepare, publish, and
announce an annual report listing the books and research
materials produced with assistance under this section.
[SEC. 606. TECHNOLOGICAL INNOVATION AND COOPERATION FOR FOREIGN
INFORMATION ACCESS.
[(a) Authority.--
[(1) In general.--The Secretary is authorized to make
grants to institutions of higher education, public or
nonprofit private libraries, or partnerships between
such institutions and other such institutions,
libraries, or nonprofit educational organizations, to
develop innovative techniques or programs using
electronic technologies to collect, organize, preserve,
and widely disseminate information from foreign sources
on world regions and countries other than the United
States that address our Nation's teaching and research
needs in international education and foreign languages.
[(2) Grant recipients.--The Secretary may award
grants under this section to carry out the activities
authorized under this section to the following:
[(A) An institution of higher education.
[(B) A public or nonprofit private library.
[(C) A partnership of an institution of
higher education and one or more of the
following:
[(i) Another institution of higher
education.
[(ii) A library.
[(iii) A nonprofit educational
organization.
[(b) Authorized Activities.--Grants under this section may be
used--
[(1) to acquire, facilitate access to, or preserve
foreign information resources in print or electronic
forms;
[(2) to develop new means of immediate, full-text
document delivery for information and scholarship from
abroad;
[(3) to develop new means of or standards for shared
electronic access to international data;
[(4) to support collaborative projects of indexing,
cataloging, and other means of bibliographic access for
scholars to important research materials published or
distributed outside the United States;
[(5) to develop methods for the wide dissemination of
resources written in non-Roman language alphabets;
[(6) to assist teachers of less commonly taught
languages in acquiring, via electronic and other means,
materials suitable for classroom use;
[(7) to promote collaborative technology based
projects in foreign languages, area studies, and
international studies among grant recipients under this
title;
[(8) to establish linkages to facilitate carrying out
the activities described in this subsection between--
[(A) the institutions of higher education,
libraries, and partnerships receiving grants
under this section; and
[(B) institutions of higher education,
nonprofit educational organizations, and
libraries overseas; and
[(9) to carry out other activities that the Secretary
determines are consistent with the purpose of the
grants awarded under this section.
[(c) Application.--Each institution of higher education,
library, or partnership desiring a grant under this section
shall submit an application to the Secretary at such time, in
such manner, and accompanied by such information and assurances
as the Secretary may reasonably require.
[(d) Match Required.--The Federal share of the total cost of
carrying out a program supported by a grant under this section
shall not be more than 66\2/3\ percent. The non-Federal share
of such cost may be provided either in-kind or in cash, and may
include contributions from private sector corporations or
foundations.]
SEC. [607.] 605. SELECTION OF CERTAIN GRANT RECIPIENTS.
(a) Competitive Grants.--The Secretary shall award grants
under section 602 competitively on the basis of criteria that
separately, but not less rigorously, evaluates--
(1) the applications for comprehensive foreign
language and area or international studies centers and
programs; and
(2) the applications for undergraduate foreign
language and area or international studies centers and
programs.
(b) Selection Criteria.--The Secretary shall set criteria for
grants awarded under section 602 by which a determination of
excellence shall be made to meet the differing objectives of
graduate and undergraduate institutions. In keeping with the
purposes of this part, the Secretary shall take into account
the degree to which activities of centers, programs, and
fellowships at institutions of higher education address
national needs, and generate information for and disseminate
information to the public. The Secretary shall also consider an
applicant's record of placing students into postgraduate
employment, education, or training in areas of national need
and an applicant's stated efforts to increase the number of
such students that go into such placements.
(c) Equitable Distribution of Grants.--The Secretary shall,
to the extent practicable, award grants under this part (other
than section 602) in such manner as to achieve an equitable
distribution of the grant funds throughout the United States,
based on the merit of a proposal as determined pursuant to a
peer review process involving broadly representative
professionals.
SEC. [608.] 606. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.
(a) Selection Criteria.--The Secretary shall make excellence
the criterion for selection of grants awarded under section
602.
(b) Equitable Distribution.--To the extent practicable and
consistent with the criterion of excellence, the Secretary
shall award grants under this part (other than section 602) in
such a manner as will achieve an equitable distribution of
funds throughout the United States.
(c) Support for Undergraduate Education.--The Secretary shall
also award grants under this part in such manner as to ensure
that an appropriate portion of the funds appropriated for this
part (as determined by the Secretary) are used to support
undergraduate education.
[SEC. 609. AMERICAN OVERSEAS RESEARCH CENTERS.
[(a) Centers Authorized.--The Secretary is authorized to make
grants to and enter into contracts with any American overseas
research center that is a consortium of institutions of higher
education (hereafter in this section referred to as a
``center'') to enable such center to promote postgraduate
research, exchanges and area studies.
[(b) Use of Grants.--Grants made and contracts entered into
pursuant to this section may be used to pay all or a portion of
the cost of establishing or operating a center or program,
including--
[(1) the cost of faculty and staff stipends and
salaries;
[(2) the cost of faculty, staff, and student travel;
[(3) the cost of the operation and maintenance of
overseas facilities;
[(4) the cost of teaching and research materials;
[(5) the cost of acquisition, maintenance, and
preservation of library collections;
[(6) the cost of bringing visiting scholars and
faculty to a center to teach or to conduct research;
[(7) the cost of organizing and managing conferences;
and
[(8) the cost of publication and dissemination of
material for the scholarly and general public.
[(c) Limitation.--The Secretary shall only award grants to
and enter into contracts with centers under this section that--
[(1) receive more than 50 percent of their funding
from public or private United States sources;
[(2) have a permanent presence in the country in
which the center is located; and
[(3) are organizations described in section 501(c)(3)
of the Internal Revenue Code of 1986 which are exempt
from taxation under section 501(a) of such Code.
[(d) Development Grants.--The Secretary is authorized to make
grants for the establishment of new centers. The grants may be
used to fund activities that, within 1 year, will result in the
creation of a center described in subsection (c).
[(e) Application.--Each center desiring to receive a grant or
contract under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information and assurances as the Secretary may require.
[SEC. 610. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
part such sums as may be necessary for fiscal year 2009, and
such sums as may be necessary for each of the five succeeding
fiscal years.]
PART B--BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS
* * * * * * *
SEC. 612. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.
(a) Program Authorized.--
(1) Purpose.--The purpose of this section is to
coordinate the programs of the Federal Government in
the areas of research, education, and training in
international business and trade competitiveness.
(2) In general.--The Secretary is authorized to make
grants to institutions of higher education, or
consortia of such institutions, to pay the Federal
share of the cost of planning, establishing and
operating centers for international business education
which--
(A) will be national resources for the
teaching of improved business techniques,
strategies, and methodologies which emphasize
the international context in which business is
transacted;
(B) will provide instruction in critical
foreign languages and international fields
needed to provide understanding of the cultures
and customs of United States trading partners;
and
(C) will provide research and training in the
international aspects of trade, commerce, and
other fields of study.
(3) Special rule.--In addition to providing training
to students enrolled in the institution of higher
education in which a center is located, such centers
shall serve as regional resources to businesses
proximately located by offering programs and providing
research designed to meet the international training
needs of such businesses. Such centers shall also serve
other faculty, students, and institutions of higher
education located within their region.
(b) Authorized Expenditures.--Each grant made under this
section may be used to pay the Federal share of the cost of
planning, establishing or operating a center, including the
cost of--
(1) faculty and staff travel in foreign areas,
regions, or countries;
(2) teaching and research materials;
(3) curriculum planning and development;
(4) bringing visiting scholars and faculty to the
center to teach or to conduct research; and
(5) training and improvement of the staff, for the
purpose of, and subject to such conditions as the
Secretary finds necessary for, carrying out the
objectives of this section.
(c) Authorized Activities.--
(1) Mandatory activities.--Programs and activities to
be conducted by centers assisted under this section
shall include--
(A) interdisciplinary programs which
incorporate foreign language and international
studies training into business, finance,
management, communications systems, and other
professional curricula;
(B) interdisciplinary programs which provide
business, finance, management, communications
systems, and other professional training for
foreign language and international studies
faculty and degree candidates;
(C) programs, such as intensive language
programs, available to members of the business
community and other professionals which are
designed to develop or enhance their
international skills, awareness, and expertise;
(D) collaborative programs, activities, or
research involving other institutions of higher
education, local educational agencies,
professional associations, businesses, firms,
or consortia thereof, to promote the
development of international skills, awareness,
and expertise among current and prospective
members of the business community and other
professionals;
(E) research designed to strengthen and
improve the international aspects of business
and professional education and to promote
integrated curricula; and
(F) research designed to promote the
international competitiveness of American
businesses and firms, including those not
currently active in international trade.
(2) Permissible activities.--Programs and activities
to be conducted by centers assisted under this section
may include--
(A) the establishment of overseas internship
programs for students and faculty designed to
provide training and experience in
international business activities, except that
no Federal funds provided under this section
may be used to pay wages or stipends to any
participant who is engaged in compensated
employment as part of an internship program;
(B) the establishment of linkages overseas
with institutions of higher education and other
organizations that contribute to the
educational objectives of this section;
(C) summer institutes in international
business, foreign area studies, foreign
language studies, and other international
studies designed to carry out the purposes of
subparagraph (A) of this paragraph;
(D) the development of opportunities for
business students to study abroad in locations
which are important to the existing and future
economic well-being of the United States;
(E) outreach activities or consortia with
business programs located at other institutions
of higher education (including those that are
eligible to receive assistance under part A or
B of title III or under title V) for the
purpose of providing expertise regarding the
internationalization of such programs, such as
assistance in research, curriculum development,
faculty development, or educational exchange
programs;
(F) programs encouraging the advancement and
understanding of technology-related
disciplines, including manufacturing software
systems and technology management; and
(G) other eligible activities prescribed by
the Secretary.
(d) Advisory Council.--
(1) Establishment.--In order to be eligible for
assistance under this section, an institution of higher
education, or consortium of such institutions, shall
establish a center advisory council which will conduct
extensive planning prior to the establishment of a
center concerning the scope of the center's activities
and the design of its programs.
(2) Membership on advisory council.--The center
advisory council shall include--
(A) one representative of an administrative
department or office of the institution of
higher education;
(B) one faculty representative of the
business or management school or department of
such institution;
(C) one faculty representative of the
international studies or foreign language
school or department of such institution;
(D) one faculty representative of another
professional school or department of such
institution, as appropriate;
(E) one or more representatives of local or
regional businesses or firms;
(F) one representative appointed by the
Governor of the State in which the institution
of higher education is located whose normal
responsibilities include official oversight or
involvement in State-sponsored trade-related
activities or programs; and
(G) such other individuals as the institution
of higher education deems appropriate, such as
a representative of a community college in the
region served by the center.
(3) Meetings.--In addition to the initial planning
activities required under subsection (d)(1), the center
advisory council shall meet not less than once each
year after the establishment of the center to assess
and advise on the programs and activities conducted by
the center.
(e) Grant Duration; Federal Share.--
(1) Duration of grants.--The Secretary shall make
grants under this section for a minimum of 3 years
unless the Secretary determines that the provision of
grants of shorter duration is necessary to carry out
the objectives of this section.
(2) Federal share.--The Federal share of the cost of
planning, establishing and operating centers under this
section shall be--
(A) not more than 90 percent for the first
year in which Federal funds are received;
(B) not more than 70 percent for the second
such year; and
(C) not more than 50 percent for the third
such year and for each such year thereafter.
(3) Non-federal share.--The non-Federal share of the
cost of planning, establishing, and operating centers
under this section may be provided either in cash or
in-kind.
(4) Waiver of non-federal share.--In the case of an
institution of higher education receiving a grant under
this part and conducting outreach or consortia
activities with another institution of higher education
in accordance with section 612(c)(2)(E), the Secretary
may waive a portion of the requirements for the non-
Federal share required in paragraph (2) equal to the
amount provided by the institution of higher education
receiving such grant to such other institution of
higher education for carrying out such outreach or
consortia activities. Any such waiver shall be subject
to such terms and conditions as the Secretary deems
necessary for carrying out the purposes of this
section.
(f) Grant Conditions.--Grants under this section shall be
made on such conditions as the Secretary determines to be
necessary to carry out the objectives of this section. Such
conditions shall include--
(1) evidence that the institution of higher
education, or consortium of such institutions, will
conduct extensive planning prior to the establishment
of a center concerning the scope of the center's
activities and the design of its programs in accordance
with subsection (d)(1);
(2) assurance of ongoing collaboration in the
establishment and operation of the center by faculty of
the business, management, foreign language,
international studies, professional international
affairs, and other professional schools or departments,
as appropriate;
(3) assurance that the education and training
programs of the center will be open to students
concentrating in each of these respective areas, as
appropriate, and that diverse perspectives and a wide
range of views will be made available to students in
programs under this section; and
(4) assurance that the institution of higher
education, or consortium of such institutions, will use
the assistance provided under this section to
supplement and not to supplant activities conducted by
institutions of higher education described in
subsection (c)(1).
(g) Approval.--The Secretary may approve an application for a
grant if an institution, in its application, provides adequate
assurances that it will comply with subsection (f)(3). The
Secretary shall use the requirement of subsection (f)(3) as
part of the application evaluation, review, and approval
process when determining grant recipients for initial funding
and continuation awards.
[SEC. 613. EDUCATION AND TRAINING PROGRAMS.
[(a) Program Authorized.--The Secretary shall make grants to,
and enter into contracts with, institutions of higher education
to pay the Federal share of the cost of programs designed to
promote linkages between such institutions and the American
business community engaged in international economic activity.
Each program assisted under this section shall both enhance the
international academic programs of institutions of higher
education and provide appropriate services to the business
community which will expand its capacity to engage in commerce
abroad.
[(b) Authorized Activities.--Eligible activities to be
conducted by institutions of higher education pursuant to
grants or contracts awarded under this section shall include--
[(1) innovation and improvement in international
education curricula to serve the needs of the business
community, including development of new programs for
nontraditional, mid-career, or part-time students;
[(2) development of programs to inform the public of
increasing international economic interdependence and
the role of American business within the international
economic system;
[(3) internationalization of curricula at the junior
and community college level, and at undergraduate and
graduate schools of business;
[(4) development of area studies programs, and
interdisciplinary international programs;
[(5) establishment of export education programs
through cooperative arrangements with regional and
world trade centers and councils, and with bilateral
and multilateral trade associations;
[(6) research for and development of specialized
teaching materials, including language materials, and
facilities appropriate to business-oriented students;
[(7) establishment of student and faculty fellowships
and internships for training and education in
international business activities;
[(8) development of opportunities for junior business
and other professional school faculty to acquire or
strengthen international skills and perspectives;
[(9) development of research programs on issues of
common interest to institutions of higher education and
private sector organizations and associations engaged
in or promoting international economic activity;
[(10) the establishment of internships overseas to
enable foreign language students to develop their
foreign language skills and knowledge of foreign
cultures and societies;
[(11) the establishment of linkages overseas with
institutions of higher education and organizations that
contribute to the educational objectives of this
section; and
[(12) summer institutes in international business,
foreign area and other international studies designed
to carry out the purposes of this section.
[(c) Applications.--No grant may be made and no contract may
be entered into under this section unless an institution of
higher education submits an application to the Secretary at
such time and in such manner as the Secretary may reasonably
require. Each such application shall be accompanied by a copy
of the agreement entered into by the institution of higher
education with a business enterprise, trade organization or
association engaged in international economic activity, or a
combination or consortium of such enterprises, organizations or
associations, for the purpose of establishing, developing,
improving or expanding activities eligible for assistance under
subsection (b) of this section. Each such application shall
contain assurances that the institution of higher education
will use the assistance provided under this section to
supplement and not to supplant activities conducted by
institutions of higher education described in subsection (b).
Each such application shall include an assurance that, where
applicable, the activities funded by the grant will reflect
diverse perspectives and a wide range of views on world regions
and international affairs.
[(d) Federal Share.--The Federal share under this part for
each fiscal year shall not exceed 50 percent of the cost of
such program.
[SEC. 614. AUTHORIZATION OF APPROPRIATIONS.
[(a) Centers for International Business Education.--There are
authorized to be appropriated such sums as may be necessary for
the fiscal year 2009 and such sums as may be necessary for each
of the five succeeding fiscal years to carry out the provisions
of section 612.
[(b) Education and Training Programs.--There are authorized
to be appropriated such sums as may be necessary for fiscal
year 2009, and such sums as may be necessary for the five
succeeding fiscal years, to carry out the provisions of section
613.]
[PART C--INSTITUTE FOR INTERNATIONAL PUBLIC POLICY
[SEC. 621. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT PROGRAM.
[(a) Establishment.--The Secretary is authorized to award a
grant, on a competitive basis, to an eligible recipient to
enable such recipient to establish an Institute for
International Public Policy (hereafter in this part referred to
as the ``Institute''). The Institute shall conduct a program to
enhance the international competitiveness of the United States
by increasing the participation of underrepresented populations
in the international service, including private international
voluntary organizations and the foreign service of the United
States. Such program shall include a program for such students
to study abroad in their junior year, fellowships for graduate
study, internships, intensive academic programs such as summer
institutes, or intensive language training.
[(b) Definition of Eligible Recipient.--
[(1) In general.--For the purpose of this part, the
term ``eligible recipient'' means a consortium
consisting of 1 or more of the following entities:
[(A) An institution eligible for assistance
under part B of title III of this Act.
[(B) A tribally controlled college or
university or Alaska Native or Native Hawaiian-
serving institution eligible for assistance
under part A or B of title III, or an
institution eligible for assistance under title
V.
[(C) An institution of higher education that
serves substantial numbers of underrepresented
minority students.
[(D) An institution of higher education with
programs in training foreign service
professionals.
[(2) Host institution.--Each eligible recipient
receiving a grant under this section shall designate an
institution of higher education as the host institution
for the Institute.
[(c) Application.--
[(1) In general.--Each eligible recipient desiring a
grant under this section shall submit an application at
such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
[(2) Content of application.--Each application
submitted under paragraph (1) shall include a
description of how the activities funded by the grant
will reflect diverse perspectives and a wide range of
views and generate debate on world regions and
international affairs, where applicable.
[(d) Duration.--Grants made pursuant to this section shall be
awarded for a period not to exceed 5 years.
[(e) Match Required.--The eligible recipient of a grant under
this section shall contribute to the conduct of the program
supported by the grant an amount from non-Federal sources equal
to at least one-half the amount of the grant, which
contribution may be in cash or in kind.
[SEC. 622. INSTITUTIONAL DEVELOPMENT.
[(a) In General.--The Institute shall award grants, from
amounts available to the Institute for each fiscal year, to
historically Black colleges and universities, Hispanic-serving
institutions, tribally controlled colleges or universities, and
minority institutions, to enable such colleges, universities,
and institutions to strengthen international affairs,
international business, and foreign language study programs,
including the teaching of foreign languages, at such colleges,
universities, and institutions, respectively, which may include
collaboration with institutions of higher education that
receive funding under this title.
[(b) Application.--No grant may be made by the Institute
unless an application is made by the college, university, or
institution at such time, in such manner, and accompanied by
such information as the Institute may require.
[(c) Definitions.--In this section--
[(1) the term ``Hispanic-serving institution'' has
the meaning given the term in section 502; and
[(2) the term ``minority institution'' has the
meaning given the term in section 365.
[SEC. 623. STUDY ABROAD PROGRAM.
[(a) Program Authority.--The Institute shall conduct, by
grant or contract, a junior year abroad program. The junior
year abroad program shall be open to eligible students at
institutions of higher education, including historically Black
colleges and universities, tribally controlled colleges or
universities, Alaska Native-serving, Native Hawaiian-serving,
and Hispanic-serving institutions, and other institutions of
higher education with significant minority student populations.
Eligible student expenses shall be shared by the Institute and
the institution at which the student is in attendance. Each
student may spend not more than 9 months abroad in a program of
academic study, as well as social, familial and political
interactions designed to foster an understanding of and
familiarity with the language, culture, economics and
governance of the host country.
[(b) Definition of Eligible Student.--For the purpose of this
section, the term ``eligible student'' means a student that
is--
[(1) enrolled full-time in a baccalaureate degree
program at an institution of higher education; and
[(2) entering the third year of study, or completing
the third year of study in the case of a summer abroad
program, at an institution of higher education which
nominates such student for participation in the study
abroad program.
[(c) Special Rule.--An institution of higher education
desiring to send a student on the study abroad program shall
enter into a Memorandum of Understanding with the Institute
under which such institution of higher education agrees to--
[(1) provide the requisite academic preparation for
students participating in the study abroad or
internship programs;
[(2) pay one-third the cost of each student it
nominates for participation in the study abroad
program; and
[(3) meet such other requirements as the Secretary
may from time to time, by regulation, reasonably
require.
[SEC. 624. ADVANCED DEGREE IN INTERNATIONAL RELATIONS.
[The Institute shall provide, in cooperation with the other
members participating in the eligible recipient consortium, a
program of study leading to an advanced degree in international
relations, international affairs, international economics, or
other academic areas related to the Institute fellow's career
objectives. The advanced degree study program shall be designed
by the consortia, consistent with the fellow's career
objectives, and shall be reviewed and approved by the
Secretary. The Institute may grant fellowships in an amount not
to exceed the level of support comparable to that provided by
the National Science Foundation graduate fellowships, except
such amount shall be adjusted as necessary so as not to exceed
the fellow's demonstrated level of need according to
measurement of need approved by the Secretary. A fellowship
recipient shall agree to undertake full-time study and to enter
the international service (including work with private
international voluntary organizations) or foreign service of
the United States.
[SEC. 625. INTERNSHIPS.
[(a) In General.--The Institute shall enter into agreements
with historically Black colleges and universities, tribally
controlled colleges or universities, Alaska Native-serving,
Native Hawaiian-serving, and Hispanic-serving institutions,
other institutions of higher education with significant numbers
of minority students, and institutions of higher education with
programs in training foreign service professionals, to provide
academic year internships during the junior and senior year and
summer internships following the sophomore and junior academic
years, by work placements with international, voluntary or
government organizations or agencies, including the Agency for
International Development, the Department of State, the
International Monetary Fund, the National Security Council, the
Organization of American States, the Export-Import Bank, the
Overseas Private Investment Corporation, the Department of
State, Office of the United States Trade Representative, the
World Bank, and the United Nations.
[(b) Postbaccalaureate Internships.--The Institute shall
enter into agreements with institutions of higher education
described in the first sentence of subsection (a) to conduct
internships for students who have completed study for a
baccalaureate degree. The internship program authorized by this
subsection shall--
[(1) assist the students to prepare for a master's
degree program;
[(2) be carried out with the assistance of the
Woodrow Wilson International Center for Scholars; and
[(3) contain work experience for the students
designed to contribute to the students' preparation for
a master's degree program.
[(c) Interagency Committee on Minority Careers in
International Affairs.--
[(1) Establishment.--There is established in the
executive branch of the Federal Government an
Interagency Committee on Minority Careers in
International Affairs composed of not less than 7
members, including--
[(A) the Under Secretary for Farm and Foreign
Agricultural Services of the Department of
Agriculture, or the Under Secretary's designee;
[(B) the Assistant Secretary and Director
General, of the United States and Foreign
Commercial Service of the Department of
Commerce, or the Assistant Secretary and
Director General's designee;
[(C) the Under Secretary of Defense for
Personnel and Readiness of the Department of
Defense, or the Under Secretary's designee;
[(D) the Assistant Secretary for
Postsecondary Education in the Department of
Education, or the Assistant Secretary's
designee;
[(E) the Director General of the Foreign
Service of the Department of State, or the
Director General's designee; and
[(F) the General Counsel of the Agency for
International Development, or the General
Counsel's designee.
[(2) Functions.--The Interagency Committee
established by this section shall--
[(A) on an annual basis inform the Secretary
and the Institute regarding ways to advise
students participating in the internship
program assisted under this section with
respect to goals for careers in international
affairs;
[(B) locate for students potential internship
opportunities in the Federal Government related
to international affairs; and
[(C) promote policies in each department and
agency participating in the Committee that are
designed to carry out the objectives of this
part.
[SEC. 626. FINANCIAL ASSISTANCE.
[(a) Authority.--The Institute may provide financial
assistance, in the form of summer stipends described in
subsection (b) and Ralph Bunche scholarship assistance
described in subsection (c), to low-income students to
facilitate the participation of the students in the Institute's
programs under this part.
[(b) Summer Stipends.--
[(1) Requirements.--A student receiving a summer
stipend under this section shall use such stipend to
defray the student's cost of participation in a summer
institute program funded under this part, including the
costs of travel, living, and educational expenses
necessary for the student's participation in such
program.
[(2) Amount.--A summer stipend awarded to a student
under this section shall not exceed $3,000 per summer.
[(c) Ralph Bunche Scholarship.--
[(1) Requirements.--A student receiving a Ralph
Bunche scholarship under this section--
[(A) shall be a full-time student at an
institution of higher education who is accepted
into a program funded under this part; and
[(B) shall use such scholarship to pay costs
related to the cost of attendance, as defined
in section 472, at the institution of higher
education in which the student is enrolled.
[(2) Amount and duration.--A Ralph Bunche scholarship
awarded to a student under this section shall not
exceed $5,000 per academic year.
[SEC. 627. REPORT.
[The Institute shall prepare a report once every two years on
the activities of the Institute and shall submit such report to
the Secretary of Education and the Secretary of State.
[SEC. 628. GIFTS AND DONATIONS.
[The Institute is authorized to receive money and other
property donated, bequeathed, or devised to the Institute with
or without a condition of restriction, for the purpose of
providing financial support for the fellowships or underwriting
the cost of the Junior Year Abroad Program. All funds or
property given, devised, or bequeathed shall be retained in a
separate account, and an accounting of those funds and property
shall be included in the report described in section 627.
[SEC. 629. AUTHORIZATION.
[There is authorized to be appropriated such sums as may be
necessary for fiscal year 2009 and such sums as may be
necessary for each of the five succeeding fiscal years to carry
out this part.]
PART [D] C--GENERAL PROVISIONS
SEC. [631.] 621. DEFINITIONS.
(a) Definitions.--As used in this title--
(1) the term ``area studies'' means a program of
comprehensive study of the aspects of a society or
societies, including study of its history, culture,
economy, politics, international relations and
languages;
(2) the term ``comprehensive foreign language and
area or international studies center'' means an
administrative unit of a university that contributes
significantly to the national interest in advanced
research and scholarship, employs a critical mass of
scholars in diverse disciplines related to a geographic
concentration, offers intensive language training in
languages of its area specialization, maintains
important library collections related to the area, and
makes training available in language and area studies
to a graduate, postgraduate, and undergraduate
clientele; and
(3) the term ``educational programs abroad'' means
programs of study, internships, or service learning
outside the United States which are part of a foreign
language or other international curriculum at the
undergraduate or graduate education levels;
(4) the term ``export education'' means educating,
teaching and training to provide general knowledge and
specific skills pertinent to the selling of goods and
services to other countries, including knowledge of
market conditions, financial arrangements, laws and
procedures;
[(5) the term ``historically Black college and
university'' has the meaning given the term ``part B
institution'' in section 322;]
[(6)] (5) the term ``institution of higher
education'' means, in addition to institutions which
meet the definition of section 101 of this Act,
institutions which meet the requirements of section 101
of this Act except that (1) they are not located in the
United States, and (2) they apply for assistance under
this title in consortia with institutions which meet
the definition of section 101 of this Act;
[(7)] (6) the term ``international business'' means
profit-oriented business relationships conducted across
national boundaries and includes activities such as the
buying and selling of goods, investments in industries,
the licensing of processes, patents and trademarks, and
the supply of services;
[(8)] (7) the term ``internationalization of
curricula'' means the incorporation of international or
comparative perspectives in existing courses of study
or the addition of new components to the curricula to
provide an international context for American business
education; and
[(9) the term ``tribally controlled college or
university'' has the meaning given the term in section
2 of the Tribally Controlled Colleges and Universities
Assistance Act of 1978 (25 U.S.C. 1801); and]
[(10)] (8) the term ``undergraduate foreign language
and area or international studies center'' means an
administrative unit of an institution of higher
education, including but not limited to 4-year
colleges, that contributes significantly to the
national interest through the education and training of
students who matriculate into advanced language and
area studies programs, professional school programs, or
incorporates substantial international and foreign
language content into baccalaureate degree programs,
engages in research, curriculum development and
community outreach activities designed to broaden
international and foreign language knowledge, employs
faculty with strong language, area, and international
studies credentials, maintains library holdings,
including basic reference works, journals, and works in
translation, and makes training available predominantly
to undergraduate students.
(b) Special Conditions.--All references to individuals or
organizations, unless the context otherwise requires, mean
individuals who are citizens or permanent residents of the
United States or organizations which are organized or
incorporated in the United States.
SEC. [632.] 622. SPECIAL RULE.
The Secretary may waive or reduce the non-Federal share
required under this title for institutions that--
(1) are eligible to receive assistance under part A
or B of title III or under title V; and
(2) have submitted a grant application under this
section that demonstrates a substantial need for a
waiver or reduction, as determined by the Secretary.
SEC. [633.] 623. RULE OF CONSTRUCTION.
Nothing in this title shall be construed to authorize the
Secretary to mandate, direct, or control an institution of
higher education's specific instructional content, curriculum,
or program of instruction.
SEC. [634.] 624. ASSESSMENT.
The Secretary is authorized to assess and ensure compliance
with all the conditions and terms of grants provided under this
title.
SEC. [635.] 625. EVALUATION, OUTREACH, AND INFORMATION.
The Secretary may use not more than one percent of the funds
made available under this title to carry out program
evaluation, national outreach, and information dissemination
activities relating to the programs authorized under this
title.
SEC. [636.] 626. REPORT.
(a) Biennial Report on Areas of National Need._ The
Secretary shall, in consultation and collaboration with the
Secretary of State, the Secretary of Defense, and the heads of
other relevant Federal agencies, submit a report once every two
years that identifies areas of national need in foreign
language, area, and international studies as such studies
relate to government, education, business, and nonprofit needs,
and a plan to address those needs. The report shall be provided
to the authorizing committees and made available to the public.
(b) Annual Report on Compliance With Diverse Perspectives and
a Wide Range of Views Requirement.--Not later than 180 days
after the date of the enactment of this subsection, and
annually thereafter, the Secretary shall submit to the
authorizing committees a report that identifies the efforts
taken to ensure recipients' compliance with the requirements
under this title relating to the ``diverse perspectives and a
wide range of views'' requirement, including any technical
assistance the Department has provided, any regulatory guidance
the Department has issued, and any monitoring the Department
has conducted. Such report shall be made available to the
public.
[SEC. 637. SCIENCE AND TECHNOLOGY ADVANCED FOREIGN LANGUAGE EDUCATION
GRANT PROGRAM.
[(a) Purpose.--It is the purpose of this section to support
programs in institutions of higher education that--
[(1) encourage students to develop--
[(A) an understanding of science and
technology; and
[(B) foreign language proficiency;
[(2) foster future international scientific
collaboration;
[(3) provide for professional development
opportunities for elementary school and secondary
school teachers of critical foreign languages to
increase the number of highly qualified teachers in
critical foreign languages; and
[(4) increase the number of United States students
who achieve the highest level of proficiency in foreign
languages critical to the security and competitiveness
of the Nation.
[(b) Development.--The Secretary shall develop a program for
the awarding of grants to institutions of higher education that
develop innovative programs for the teaching of foreign
languages, which may include the preparation of teachers to
teach foreign languages.
[(c) Regulations and Requirements.--The Secretary shall
promulgate regulations for the awarding of grants under
subsection (b). Such regulations may require institutions of
higher education to use grant funds for, among other things--
[(1) the development of an on-campus cultural
awareness program by which students attend classes
taught in a foreign language and study the science and
technology developments and practices in a non-English
speaking country;
[(2) immersion programs where students take science
or technology related course work in a non-English
speaking country;
[(3) other programs, such as summer workshops, that
emphasize the intense study of a foreign language and
science technology;
[(4) if applicable, recruiting highly qualified
teachers in critical foreign languages, and providing
professional development activities for such teachers
at the elementary school and secondary school levels;
and
[(5) providing innovative opportunities for students
that will allow for critical language learning, such as
immersion environments, intensive study opportunities,
internships, and distance learning.
[(d) Grant Distribution.--In distributing grants to
institutions of higher education under this section, the
Secretary shall give priority to--
[(1) institutions that have programs focusing on
curricula that combine the study of foreign languages
and the study of science and technology and produce
graduates who have both skills; and
[(2) institutions teaching critical foreign
languages.
[(e) Report on Best Practices.--Not later than one year after
the date of enactment of this section, the Secretary shall--
[(1) conduct a study to identify the best practices
to strengthen the role of institutions of higher
education that receive funding under title III or title
V in increasing the critical foreign language education
efforts in the United States; and
[(2) submit a report on the results of such study to
the authorizing committees.
[(f) Appropriations Authorized.--There are authorized to be
appropriated to carry out this section, such sums as may be
necessary for fiscal year 2009 and for each subsequent fiscal
year.]
SEC. [638.] 627. REPORTING BY INSTITUTIONS.
(a) Applicability.--The data requirement in subsection (b)
shall apply to an institution of higher education that receives
funds for a center or program under this title if--
(1) the amount of the contribution (including cash
and the fair market value of any property) received
from any foreign government or from a foreign private
sector corporation or foundation during any fiscal year
exceeds $250,000 in the aggregate; and
(2) the aggregate contribution, or a significant part
of the aggregate contribution, is to be used by a
center or program receiving funds under this title.
[(b) Data Required.--The Secretary shall require an
institution of higher education referred to in subsection (a)
to report information listed in subsection (a) to the Secretary
consistent with the requirements of section 117.]
(b) Data Required.--
(1) In general.--Except as provided in paragraph (5),
the Secretary shall require an institution of higher
education referred to in subsection (a) to file a
disclosure report under paragraph (2) with the
Secretary on January 31 or July 31, whichever is
sooner, with respect to the date on which such
institution received a contribution--
(A) less than 7 months from such date; and
(B) greater than 30 days from such date.
(2) Contents of report.--Each report to the Secretary
required by this section shall contain the following
information with respect to the institution of higher
education filing the report:
(A) For gifts received from, or contracts
entered into with a foreign source other than a
foreign government, the following information:
(i) The aggregate dollar amount of
such gifts and contracts attributable
to each country, including the fair
market value of the services of staff
members, textbooks, and other in-kind
gifts.
(ii) The legal name of the entity
providing any such gift or contract.
(iii) The country to which the gift
is attributable.
(B) For gifts received from, or contracts
entered into with, a foreign government, the
aggregate dollar amount of such gifts and
contracts received from each foreign government
and the legal name of the entity providing any
such gift or contract.
(C) In the case of an institution of higher
education that is owned or controlled by a
foreign source--
(i) the identity of the foreign
source;
(ii) the date on which the foreign
source assumed ownership or control of
the institution; and
(iii) any changes in program or
structure resulting from the change in
ownership or control.
(3) Additional disclosures for restricted and
conditional gifts.--Notwithstanding paragraph (1), when
an institution of higher education receives a
restricted or conditional gift or contract from a
foreign source, the institution shall disclose the
following:
(A) In the case of gifts received from, or
contracts entered into with, a foreign source
other than a foreign government, the amount,
the date, and a description of such conditions
or restrictions.
(B) The country to which the gift is
attributable.
(C) In the case of gifts received from, or
contracts entered into with, a foreign
government, the amount, the date, a description
of such conditions or restrictions, and the
name of the foreign government.
(4) Attribution of gifts.--For purposes of this
subsection, the country to which a gift is attributable
is--
(A) the country of citizenship; or
(B) if the information described in
subparagraph (A) is not known--
(i) the principal residence for a
foreign source who is a natural person;
or
(ii) the principal place of business
and country of incorporation for a
foreign source that is a legal entity.
(5) Relation to other reporting requirements.--
(A) State requirements.--If an institution
described under subsection (a) is located
within a State that has enacted requirements
for public disclosure of gifts from, or
contracts with, a foreign source that are
substantially similar to the requirements of
this section, as determined by the Secretary, a
copy of the disclosure report filed with the
State may be filed with the Secretary in lieu
of a report required under paragraph (1).
(B) Assurances.--With respect to an
institution that submits a copy of a disclosure
report pursuant to subparagraph (A), the State
in which such institution is located shall
provide to the Secretary such assurances as the
Secretary may require to establish that the
institution has met the requirements for public
disclosure under the laws of such State.
(C) Use of other federal reports.--If an
institution receives a gift from, or enters
into a contract with, a foreign source, where
any other Federal law or regulation requires a
report containing requirements substantially
similar to the requirements under this section,
as determined by the Secretary, a copy of the
report may be filed with the Secretary in lieu
of a report required under subsection (b).
(6) Public inspection.--A disclosure report required
by this section shall be--
(A) available as public records open to
inspection and copying during business hours;
(B) available electronically; and
(C) made available under subparagraphs (A)
and (B) not later than 30 days after the
Secretary receives such report.
(7) Enforcement.--
(A) Compel compliance.--Whenever it appears
that an institution has failed to comply with
the requirements of this section, including any
rule or regulation promulgated under this
section, a civil action may be brought by the
Attorney General, at the request of the
Secretary, in an appropriate district court of
the United States, or the appropriate United
States court of any territory or other place
subject to the jurisdiction of the United
States, to request such court to compel
compliance with the requirements of this
section.
(B) Costs.--For knowing or willful failure to
comply with the requirements of this section,
including any rule or regulation promulgated
thereunder, an institution shall pay to the
Treasury of the United States the full costs to
the United States of obtaining compliance,
including all associated costs of investigation
and enforcement.
(8) Definitions.--In this section:
(A) Contract.--The term ``contract'' means
any agreement for the acquisition by purchase,
lease, gift, or barter of property or services
by the foreign source, for the direct benefit
or use of either of the parties.
(B) Foreign source.--The term ``foreign
source'' means--
(i) a foreign government, including
an agency of a foreign government;
(ii) a legal entity, governmental or
otherwise, created solely under the
laws of a foreign state or states;
(iii) an individual who is not a
citizen or a national of the United
States or a trust territory or
protectorate thereof; and
(iv) an agent, including a subsidiary
or affiliate of a foreign legal entity,
acting on behalf of a foreign source.
(C) Gift.--The term ``gift'' means any gift
of money, property, human resources, or payment
of any staff.
(D) Restricted or conditional.--The term
``restricted or conditional'', with respect to
an endowment, gift, grant, contract, award,
present, or property of any kind means
including as a condition on such endowment,
gift, grant, contract, award, present, or
property provisions regarding--
(i) the employment, assignment, or
termination of faculty;
(ii) the establishment of
departments, centers, research or
lecture programs, institutes,
instructional programs, or new faculty
positions;
(iii) the selection or admission of
students; or
(iv) the award of grants, loans,
scholarships, fellowships, or other
forms of financial aid restricted to
students of a specified country,
religion, sex, ethnic origin, or
political opinion.
SEC. 628. CONTINUATION AWARDS.
The Secretary shall make continuation awards under this title
for the second and succeeding years of a grant only after
determining that the recipient is making satisfactory progress
in carrying out the stated grant objectives approved by the
Secretary.
SEC. 629. COMPLIANCE WITH DIVERSE PERSPECTIVE AND A WIDE RANGE OF
VIEWS.
When complying with the requirement of this title to offer a
diverse perspective and a wide range of views, a recipient of a
grant under this title shall not promote any biased views that
are discriminatory toward any group, religion, or population of
people.
SEC. 630. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
title $61,525,000 for each of fiscal years 2019 through 2024.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
* * * * * * *
PART A--GRADUATE EDUCATION PROGRAMS
[Subpart 1--Jacob K. Javits Fellowship Program
[SEC. 701. AWARD OF JACOB K. JAVITS FELLOWSHIPS.
[(a) Authority and Timing of Awards.--The Secretary is
authorized to award fellowships in accordance with the
provisions of this subpart for graduate study in the arts,
humanities, and social sciences by students of superior ability
selected on the basis of demonstrated achievement, financial
need, and exceptional promise. The fellowships shall be awarded
to students who are eligible to receive any grant, loan, or
work assistance pursuant to section 484 and intend to pursue a
doctoral degree, except that fellowships may be granted to
students pursuing a master's degree in those fields in which
the master's degree is the terminal highest degree awarded in
the area of study. All funds appropriated in a fiscal year
shall be obligated and expended to the students for fellowships
for use in the academic year beginning after July 1 of the
fiscal year following the fiscal year for which the funds were
appropriated. The fellowships shall be awarded for only 1
academic year of study and shall be renewable for a period not
to exceed 4 years of study.
[(b) Designation of Fellows.--Students receiving awards under
this subpart shall be known as ``Jacob K. Javits Fellows''.
[(c) Interruptions of Study.--The institution of higher
education may allow a fellowship recipient to interrupt periods
of study for a period not to exceed 12 months for the purpose
of work, travel, or independent study away from the campus, if
such independent study is supportive of the fellowship
recipient's academic program and shall continue payments for
those 12-month periods during which the student is pursuing
travel or independent study supportive of the recipient's
academic program. In the case of other exceptional
circumstances, such as active duty military service or personal
or family member illness, the institution of higher education
may also permit the fellowship recipient to interrupt periods
of study for the duration of the tour of duty (in the case of
military service) or for not more than 12 months (in any other
case), but without payment of the stipend.
[(d) Process and Timing of Competition.--The Secretary shall
make applications for fellowships under this part available not
later than October 1 of the academic year preceding the
academic year for which fellowships will be awarded, and shall
announce the recipients of fellowships under this section not
later than March 1 of the academic year preceding the academic
year for which the fellowships are awarded.
[(e) Authority To Contract.--The Secretary is authorized to
enter into a contract with a nongovernmental agency to
administer the program assisted under this part if the
Secretary determines that entering into the contract is an
efficient means of carrying out the program.
[SEC. 702. ALLOCATION OF FELLOWSHIPS.
[(a) Fellowship Board.--
[(1) Appointment.--
[(A) In general.--The Secretary shall appoint
a Jacob K. Javits Fellows Program Fellowship
Board (referred to in this subpart as the
``Board'') consisting of 9 individuals
representative of both public and private
institutions of higher education who are
especially qualified to serve on the Board.
[(B) Qualifications.--In making appointments
under subparagraph (A), the Secretary shall--
[(i) give due consideration to the
appointment of individuals who are
highly respected in the academic
community;
[(ii) appoint members who represent
the various geographic regions of the
United States;
[(iii) ensure that individuals
appointed to the Board are broadly
representative of a range of
disciplines in graduate education in
arts, humanities, and social sciences;
and
[(iv) ensure that such individuals
include representatives from
institutions that are eligible for one
or more of the grants under title III
or V.
[(2) Duties.--The Board shall--
[(A) establish general policies for the
program established by this subpart and oversee
the program's operation;
[(B) establish general criteria for the award
of fellowships in academic fields identified by
the Board, or, in the event that the Secretary
enters into a contract with a nongovernmental
entity to administer the program assisted under
this subpart, by such nongovernmental entity;
[(C) appoint panels of academic scholars with
distinguished backgrounds in the arts,
humanities, and social sciences for the purpose
of selecting fellows, except that, in the event
that the Secretary enters into a contract with
a nongovernmental entity to administer the
program, such panels may be appointed by such
nongovernmental entity; and
[(D) prepare and submit to the Congress at
least once in every 3-year period a report on
any modifications in the program that the Board
determines are appropriate.
[(3) Consultations.--In carrying out its
responsibilities, the Board shall consult on a regular
basis with representatives of the National Science
Foundation, the National Endowment for the Humanities,
the National Endowment for the Arts, and
representatives of institutions of higher education and
associations of such institutions, learned societies,
and professional organizations.
[(4) Term.--The term of office of each member of the
Board shall be 4 years, except that any member
appointed to fill a vacancy shall serve for the
remainder of the term for which the predecessor of the
member was appointed. No member may serve for a period
in excess of 6 years.
[(5) Initial meeting; vacancy.--The Secretary shall
call the first meeting of the Board, at which the first
order of business shall be the election of a
Chairperson and a Vice Chairperson, who shall serve
until 1 year after the date of the appointment of the
Chairperson and Vice Chairperson. Thereafter each
officer shall be elected for a term of 2 years. In case
a vacancy occurs in either office, the Board shall
elect an individual from among the members of the Board
to fill such vacancy.
[(6) Quorum; additional meetings.--(A) A majority of
the members of the Board shall constitute a quorum.
[(B) The Board shall meet at least once a year or
more frequently, as may be necessary, to carry out the
Board's responsibilities.
[(7) Compensation.--Members of the Board, while
serving on the business of the Board, shall be entitled
to receive compensation at rates fixed by the
Secretary, but not exceeding the rate of basic pay
payable for level IV of the Executive Schedule,
including travel time, and while so serving away from
their homes or regular places of business, the members
may be allowed travel expenses, including per diem in
lieu of subsistence, as authorized by section 5703 of
title 5, United States Code, for persons in Government
service employed intermittently.
[(b) Use of Selection Panels.--The recipients of fellowships
shall be selected in each designated field from among all
applicants nationwide in each field by distinguished panels
appointed by the Board to make such selections under criteria
established by the Board, except that, in the event that the
Secretary enters into a contract with a nongovernmental entity
to administer the program, such panels may be appointed by such
nongovernmental entity. The number of recipients in each field
in each year shall not exceed the number of fellows allocated
to that field for that year by the Board.
[(c) Fellowship Portability.--Each recipient shall be
entitled to use the fellowship in a graduate program at any
accredited institution of higher education in which the
recipient may decide to enroll.
[SEC. 703. STIPENDS.
[(a) Award by Secretary.--The Secretary shall pay to
individuals awarded fellowships under this subpart such
stipends as the Secretary may establish, reflecting the purpose
of this program to encourage highly talented students to
undertake graduate study as described in this subpart. In the
case of an individual who receives such individual's first
stipend under this subpart in academic year 2009-2010 or any
succeeding academic year, such stipend shall be set at a level
of support equal to that provided by the National Science
Foundation Graduate Research Fellowship Program for such
academic year, except such amount shall be adjusted as
necessary so as not to exceed the fellow's demonstrated level
of need determined in accordance with part F of title IV.
[(b) Institutional Payments.--
[(1) In general.--(A) The Secretary shall (in
addition to stipends paid to individuals under this
subpart) pay to the institution of higher education,
for each individual awarded a fellowship under this
subpart at such institution, an institutional
allowance. Except as provided in subparagraph (B), such
allowance shall be, for academic year 2009-2010 and
succeeding academic years, the same amount as the
institutional payment made for academic year 2008-2009,
adjusted for academic year 2009-2010 and annually
thereafter in accordance with inflation as determined
by the Department of Labor's Consumer Price Index for
the previous calendar year.
[(B) The institutional allowance paid under
subparagraph (A) shall be reduced by the amount the
institution charges and collects from a fellowship
recipient for tuition and other expenses as part of the
recipient's instructional program.
[(2) Special rules.--(A) Beginning March 1, 1992, any
applicant for a fellowship under this subpart who has
been notified in writing by the Secretary that such
applicant has been selected to receive such a
fellowship and is subsequently notified that the
fellowship award has been withdrawn, shall receive such
fellowship unless the Secretary subsequently makes a
determination that such applicant submitted fraudulent
information on the application.
[(B) Subject to the availability of appropriations,
amounts payable to an institution by the Secretary
pursuant to this subsection shall not be reduced for
any purpose other than the purposes specified under
paragraph (1).
[SEC. 704. FELLOWSHIP CONDITIONS.
[(a) Requirements for Receipt.--An individual awarded a
fellowship under the provisions of this subpart shall continue
to receive payments provided in section 703 only during such
periods as the Secretary finds that such individual is
maintaining satisfactory proficiency in, and devoting
essentially full time to, study or research in the field in
which such fellowship was awarded, in an institution of higher
education, and is not engaging in gainful employment other than
part-time employment by such institution in teaching, research,
or similar activities, approved by the Secretary.
[(b) Reports From Recipients.--The Secretary is authorized to
require reports containing such information in such form and
filed at such times as the Secretary determines necessary from
any person awarded a fellowship under the provisions of this
subpart. The reports shall be accompanied by a certificate from
an appropriate official at the institution of higher education,
library, archive, or other research center approved by the
Secretary, stating that such individual is making satisfactory
progress in, and is devoting essentially full time to the
program for which the fellowship was awarded.
[SEC. 705. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated $30,000,000 for
fiscal year 2009 and each of the five succeeding fiscal years
to carry out this subpart.]
Subpart [2] 1--Graduate Assistance in Areas of National Need
SEC. [711.] 701. GRANTS TO ACADEMIC DEPARTMENTS AND PROGRAMS OF
INSTITUTIONS.
(a) Grant Authority.--
(1) In general.--The Secretary shall make grants to
academic departments, programs and other academic units
of institutions of higher education that provide
courses of study leading to a graduate degree,
including a master's or doctoral degree, in order to
enable such institutions to provide assistance to
graduate students in accordance with this subpart.
(2) Additional grants.--The Secretary may also make
grants to such departments, programs and other academic
units of institutions of higher education granting
graduate degrees which submit joint proposals involving
nondegree granting institutions which have formal
arrangements for the support of doctoral dissertation
research with degree-granting institutions. Nondegree
granting institutions eligible for awards as part of
such joint proposals include any organization which--
(A) is described in section 501(c)(3) of the
Internal Revenue Code of 1986, and is exempt
from tax under section 501(a) of such Code;
(B) is organized and operated substantially
to conduct scientific and cultural research and
graduate training programs;
(C) is not a private foundation;
(D) has academic personnel for instruction
and counseling who meet the standards of the
institution of higher education in which the
students are enrolled; and
(E) has necessary research resources not
otherwise readily available in such
institutions to such students.
(b) Award and Duration of Grants.--
(1) Awards.--The principal criterion for the award of
grants shall be the relative quality of the graduate
programs presented in competing applications.
Consistent with an allocation of awards based on
quality of competing applications, the Secretary shall,
in awarding such grants, promote an equitable
geographic distribution among eligible public and
private institutions of higher education.
(2) Duration and Amount.--
(A) Duration.--The Secretary shall award a
grant under this subpart for a period of 3
years.
(B) Amount.--The Secretary shall award a
grant to an academic department, program or
unit of an institution of higher education
under this subpart for a fiscal year in an
amount that is not less than $100,000 and not
greater than $750,000.
(3) Reallotment.--Whenever the Secretary determines
that an academic department, program or unit of an
institution of higher education is unable to use all of
the amounts available to the department, program or
unit under this subpart, the Secretary shall, on such
dates during each fiscal year as the Secretary may fix,
reallot the amounts not needed to academic departments,
programs and units of institutions which can use the
grants authorized by this subpart.
(c) Preference To Continuing Grant Recipients.--
(1) In general.--The Secretary shall make new grant
awards under this subpart only to the extent that each
previous grant recipient under this subpart has
received continued funding in accordance with
subsection (b)(2)(A).
(2) Ratable reduction.--To the extent that
appropriations under this subpart are insufficient to
comply with paragraph (1), available funds shall be
distributed by ratably reducing the amounts required to
be awarded under subsection (b)(2)(A).
SEC. [712.] 702. INSTITUTIONAL ELIGIBILITY.
(a) Eligibility Criteria.--Any academic department, program
or unit of an institution of higher education that offers a
program of postbaccalaureate study leading to a graduate
degree, including a master's or doctoral degree, in an area of
national need (as designated under subsection (b)) may apply
for a grant under this subpart. No department, program or unit
shall be eligible for a grant unless the program of
postbaccalaureate study has been in existence for at least 4
years at the time of application for assistance under this
subpart.
(b) Designation of Areas of National Need.--After
consultation with appropriate Federal and nonprofit agencies
and organizations, including the National Science Foundation,
the Department of Defense, the Department of Homeland Security,
the National Academy of Sciences, and the Bureau of Labor
Statistics, the Secretary shall designate areas of national
need. In making such designations, the Secretary shall take
into consideration--
(1) the extent to which the interest in the area is
compelling;
(2) the extent to which other Federal programs
support postbaccalaureate study in the area concerned;
(3) an assessment of how the program may achieve the
most significant impact with available resources; and
(4) an assessment of current (as of the time of the
designation) and future professional workforce needs of
the United States.
SEC. [713.] 703. CRITERIA FOR APPLICATIONS.
(a) Selection of Applications.--The Secretary shall make
grants to academic departments, programs and units of
institutions of higher education on the basis of applications
submitted in accordance with subsection (b). Applications shall
be ranked on program quality by review panels of nationally
recognized scholars and evaluated on the quality and
effectiveness of the academic program and the achievement and
promise of the students to be served. To the extent possible
(consistent with other provisions of this section), the
Secretary shall make awards that are consistent with
recommendations of the review panels.
(b) Contents of Applications.--An academic department,
program or unit of an institution of higher education, in the
department, program or unit's application for a grant, shall--
(1) describe the current academic program of the
applicant for which the grant is sought;
(2) provide assurances that the applicant will
provide, from other non-Federal sources, for the
purposes of the fellowship program under this subpart
an amount equal to at least 25 percent of the amount of
the grant received under this subpart, which
contribution may be in cash or in kind, fairly valued;
(3) set forth policies and procedures to assure that,
in making fellowship awards under this subpart, the
institution will seek talented students from
traditionally underrepresented backgrounds, as
determined by the Secretary;
(4) describe the number, types, and amounts of the
fellowships that the applicant intends to offer with
grant funds provided under this part;
(5) set forth policies and procedures to assure that,
in making fellowship awards under this subpart, the
institution will make awards to individuals who--
(A) have financial need, as determined under
part F of title IV;
(B) have excellent academic records in their
previous programs of study; and
(C) plan to pursue the highest possible
degree available in their course of study at
the institution;
(6) set forth policies and procedures to ensure that
Federal funds made available under this subpart for any
fiscal year will be used to supplement and, to the
extent practical, increase the funds that would
otherwise be made available for the purpose of this
subpart and in no case to supplant those funds;
(7) provide assurances that, in the event that funds
made available to the academic department, program or
unit under this subpart are insufficient to provide the
assistance due a student under the commitment entered
into between the academic department, program or unit
and the student, the academic department, program or
unit will, from any funds available to the department,
program or unit, fulfill the commitment to the student;
(8) provide that the applicant will comply with the
limitations set forth in [section 715] section 705;
(9) provide assurances that the academic department
will provide at least 1 year of supervised training in
instruction for students; and
(10) include such other information as the Secretary
may prescribe.
SEC. [714.] 704. AWARDS TO GRADUATE STUDENTS.
(a) Commitments to Graduate Students.--
(1) In general.--An academic department, program or
unit of an institution of higher education shall make
commitments to graduate students who are eligible
students under section 484 (including students pursuing
a doctoral degree after having completed a master's
degree program at an institution of higher education)
at any point in their graduate study to provide
stipends for the length of time necessary for a student
to complete the course of graduate study, but in no
case longer than 5 years.
(2) Special rule.--No such commitments shall be made
to students under this subpart unless the academic
department, program or unit has determined adequate
funds are available to fulfill the commitment from
funds received or anticipated under this subpart, or
from institutional funds.
(b) Amount of Stipends.--The Secretary shall make payments to
institutions of higher education for the purpose of paying
stipends to individuals who are awarded fellowships under this
subpart. The stipends the Secretary establishes shall reflect
the purpose of the program under this subpart to encourage
highly talented students to undertake graduate study as
described in this subpart. In the case of an individual who
receives such individual's first stipend under this subpart in
academic year 2009-2010 or any succeeding academic year, such
stipend shall be set at a level of support equal to that
provided by the National Science Foundation Graduate Research
Fellowship Program for such academic year, except such amount
shall be adjusted as necessary so as not to exceed the fellow's
demonstrated level of need as determined under part F of title
IV.
(c) Treatment of Institutional Payments.--An institution of
higher education that makes institutional payments for tuition
and fees on behalf of individuals supported by fellowships
under this subpart in amounts that exceed the institutional
payments made by the Secretary pursuant to [section 715(a)]
section 705(a) may count such excess toward the amounts the
institution is required to provide pursuant to [section
713(b)(2)] section 703(b)(2).
(d) Academic Progress Required.--Notwithstanding the
provisions of subsection (a), no student shall receive an
award--
(1) except during periods in which such student is
maintaining satisfactory progress in, and devoting
essentially full time to, study or research in the
field in which such fellowship was awarded; or
(2) if the student is engaging in gainful employment
other than part-time employment involved in teaching,
research, or similar activities determined by the
institution to be in support of the student's progress
towards a degree.
SEC. [715.] 705. ADDITIONAL ASSISTANCE FOR COST OF EDUCATION.
(a) Institutional Payments.--
(1) In general.--The Secretary shall (in addition to
stipends paid to individuals under this subpart) pay to
the institution of higher education, for each
individual awarded a fellowship under this subpart at
such institution, an institutional allowance. Except as
provided in paragraph (2), such allowance shall be, for
2009-2010 and succeeding academic years, the same
amount as the institutional payment made for 2008-2009
adjusted annually thereafter in accordance with
inflation as determined by the Department of Labor's
Consumer Price Index for the previous calendar year.
(2) Reduction.--The institutional allowance paid
under paragraph (1) shall be reduced by the amount the
institution charges and collects from a fellowship
recipient for tuition and other expenses as part of the
recipient's instructional program.
(b) Use for Overhead Prohibited.--Funds made available
pursuant to this subpart may not be used for the general
operational overhead of the academic department or program.
SEC. [716.] 706. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated [$35,000,000 for
fiscal year 2009 and each of the five succeeding fiscal years
to carry out this subpart.] $28,047,000 for each of fiscal
years 2019 through 2024.
[Subpart 3--Thurgood Marshall Legal Educational Opportunity Program
[SEC. 721. LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.
[(a) Program Authority.--The Secretary shall carry out a
program to be known as the ``Thurgood Marshall Legal
Educational Opportunity Program'' designed to provide low-
income, minority, or disadvantaged secondary school and college
students with the information, preparation, and financial
assistance to gain access to and complete law school study and
admission to law practice.
[(b) Eligibility.--A secondary school student or college
student is eligible for assistance under this section if the
student is--
[(1) from a low-income family;
[(2) a minority; or
[(3) from an economically or otherwise disadvantaged
background.
[(c) Contract or Grant Authorized.--The Secretary is
authorized to enter into a contract with, or make a grant to,
the Council on Legal Education Opportunity, for a period of not
less than 5 years--
[(1) to identify secondary school and college
students who are from low-income families, are
minorities, or are from disadvantaged backgrounds
described in subsection (b)(3);
[(2) to prepare such students for successful
completion of a baccalaureate degree and for study at
accredited law schools, and to assist them with the
development of analytical skills, writing skills, and
study methods to enhance the students' success in, and
promote the students' admission to and completion of,
law school;
[(3) to assist such students to select the
appropriate law school, make application for entry into
law school, and receive financial assistance for such
study;
[(4) to provide support services to such students who
are first-year law students to improve retention and
success in law school studies;
[(5) to motivate and prepare such students--
[(A) with respect to law school studies and
practice in low-income communities; and
[(B) to provide legal services to low-income
individuals and families; and
[(6) to award Thurgood Marshall Fellowships to
eligible law school students--
[(A) who participated in summer institutes
under subsection (d)(6) and who are enrolled in
an accredited law school; or
[(B) who have successfully completed a
comparable summer institute program that is
certified by the Council on Legal Education
Opportunity.
[(d) Services Provided.--In carrying out the purposes
described in subsection (c), the contract or grant shall
provide for the delivery of services through pre-college
programs, undergraduate prelaw information resource centers,
summer institutes, midyear seminars, and other educational
activities, conducted under this section. Such services may
include--
[(1) information and counseling regarding--
[(A) accredited law school academic programs,
especially tuition, fees, and admission
requirements;
[(B) course work offered and required for law
school graduation;
[(C) faculty specialties and areas of legal
emphasis; and
[(D) pre-college and undergraduate
preparatory courses in analytical and writing
skills, study methods, and course selection;
[(2) summer academic programs for secondary school
students who have expressed interest in a career in the
law;
[(3) tutoring and academic counseling, including
assistance in preparing for bar examinations;
[(4) prelaw mentoring programs, involving law school
faculty, members of State and local bar associations,
and retired and sitting judges, justices, and
magistrates;
[(5) assistance in identifying preparatory courses
and
material for the law school aptitude or admissions
tests;
[(6) summer institutes for Thurgood Marshall Fellows
that expose the Fellows to a rigorous curriculum that
emphasizes abstract thinking, legal analysis, research,
writing, and examination techniques; and
[(7) midyear seminars and other educational
activities that are designed to reinforce reading,
writing, and studying skills of Thurgood Marshall
Fellows and Associates.
[(e) Duration of the Provision of Services.--The services
described in subsection (d) may be provided--
[(1) prior to the period of law school study,
including before and during undergraduate study;
[(2) during the period of law school study; and
[(3) during the period following law school study and
prior to taking a bar examination.
[(f) Subcontracts and Subgrants.--For the purposes of
planning, developing, or delivering one or more of the services
described in subsection (d), the Council on Legal Education
Opportunity shall enter into subcontracts with, and make
subgrants to, institutions of higher education, law schools,
public and private agencies and organizations, national and
State bar associations, and combinations of such institutions,
schools, agencies, organizations, and associations.
[(g) Fellowships and Stipends.--The Secretary shall annually
establish the maximum fellowship to be awarded, and the maximum
stipend to be paid (including allowances for participant travel
and for the travel of the dependents of the participant), to
Thurgood Marshall Fellows or Associates for the period of
participation in summer institutes, midyear seminars, and bar
preparation seminars. A Thurgood Marshall Fellow or Associate
may be eligible for such a fellowship or stipend only if the
Fellow or Associate maintains satisfactory academic progress
toward the Juris Doctor or Bachelor of Laws degree, as
determined by the respective institutions (except with respect
to a law school graduate enrolled in a bar preparation course).
[(h) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $5,000,000 for
fiscal year 2009 and each of the five succeeding fiscal years.]
Subpart [4] 2--Masters Degree Programs at Historically Black Colleges
and Universities and Predominantly Black Institutions
SEC. [723.] 711. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK
COLLEGES AND UNIVERSITIES.
(a) Grant Program Authorized.--
(1) In general.--Subject to the availability of funds
appropriated to carry out this section, the Secretary
shall award program grants to each of the institutions
listed in subsection (b)(1) that is determined by the
Secretary to be making a substantial contribution to
graduate education opportunities at the masters level
in mathematics, engineering, the physical or natural
sciences, computer science, information technology,
nursing, allied health, or other scientific disciplines
for Black Americans.
(2) Assurance of non-federal matching funds.--No
grant in excess of $1,000,000 may be made under this
section unless the institution provides assurances that
50 percent of the cost of the purposes for which the
grant is made will be paid from non-Federal sources,
except that no institution shall be required to match
any portion of the first $1,000,000 of the
institution's award from the Secretary. After funds are
made available to each eligible institution under the
funding rules described in subsection (f), the
Secretary shall distribute, on a pro rata basis, any
amounts which were not so made available (by reason of
the failure of an institution to comply with the
matching requirements of this paragraph) among the
institutions that have complied with such matching
requirement.
(3) Minimum award.--Subject to subsections (f) and
(g), the amount awarded to each eligible institution
listed in subsection (b)(1) for a fiscal year shall be
not less than $500,000.
(4) Duration of grants.--A grant awarded under this
section shall be for a period of not more than six
years, but may be periodically renewed for a period to
be determined by the Secretary.
(b) Institutional Eligibility.--
(1) In general.--Institutions eligible for grants
under subsection (a) are the following:
(A) Albany State University.
(B) Alcorn State University.
(C) Claflin University.
(D) Coppin State University.
(E) Elizabeth City State University.
(F) Fayetteville State University.
(G) Fisk University.
(H) Fort Valley State University.
(I) Grambling State University.
(J) Kentucky State University.
(K) Mississippi Valley State University.
(L) Savannah State University.
(M) South Carolina State University.
(N) University of Arkansas, Pine Bluff.
(O) Virginia State University.
(P) West Virginia State University.
(Q) Wilberforce University.
(R) Winston-Salem State University.
(2) Qualified masters degree program.--
(A) In general.--For the purposes of this
section, the term ``qualified masters degree
program'' means a masters degree program that
provides a program of instruction in
mathematics, engineering, the physical or
natural sciences, computer science, information
technology, nursing, allied health, or other
scientific disciplines in which African
Americans are underrepresented and has students
enrolled in such program of instruction at the
time of application for a grant under this
section.
(B) Enrollment exception.--Notwithstanding
the enrollment requirement contained in
subparagraph (A), an institution may use an
amount equal to not more than 10 percent of the
institution's grant under this section for the
development of a new qualified masters degree
program.
(3) Institutional choice.--The president or
chancellor of the institution may decide which graduate
school or qualified masters degree program will receive
funds under the grant in any one fiscal year, if the
allocation of funds among the schools or programs is
delineated in the application for funds submitted to
the Secretary under this section.
(4) One grant per institution.--The Secretary shall
not award more than one grant under this section in any
fiscal year to any institution of higher education.
(c) Application.--An eligible institution listed in
subsection (b)(1) desiring a grant under this section shall
submit an application at such time, in such manner, and
containing such information as the Secretary may require. The
application shall--
(1) demonstrate how the grant funds under this
section will be used to improve graduate educational
opportunities for Black and low-income students, and
lead to greater financial independence; and
(2) provide, in the case of applications for grants
in excess of $1,000,000, the assurances required under
subsection (a)(2) and specify the manner in which the
eligible institution is going to pay the non-Federal
share of the cost of the application.
(d) Uses of Funds.--A grant under this section may be used
for--
(1) purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes;
(2) construction, maintenance, renovation, and
improvement in classroom, library, laboratory, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services;
(3) purchase of library books, periodicals, technical
and other scientific journals, microfilm, microfiche,
and other educational materials, including
telecommunications program materials;
(4) scholarships, fellowships, and other financial
assistance for needy graduate students to permit the
enrollment of the students in, and completion of, a
masters degree in mathematics, engineering, the
physical or natural sciences, computer science,
information technology, nursing, allied health, or
other scientific disciplines in which African Americans
are underrepresented;
(5) establishing or improving a development office to
strengthen and increase contributions from alumni and
the private sector;
(6) assisting in the establishment or maintenance of
an institutional endowment to facilitate financial
independence pursuant to section 331;
(7) funds and administrative management, and the
acquisition of equipment, including software, for use
in strengthening funds management and management
information systems;
(8) acquisition of real property that is adjacent to
the campus in connection with the construction,
renovation, or improvement of, or an addition to,
campus facilities;
(9) education or financial information designed to
improve the financial literacy and economic literacy of
students or the students' families, especially with
regard to student indebtedness and student assistance
programs under title IV;
(10) tutoring, counseling, and student service
programs designed to improve academic success;
(11) faculty professional development, faculty
exchanges, and faculty participation in professional
conferences and meetings; and
(12) other activities proposed in the application
submitted under subsection (c) that--
(A) contribute to carrying out the purposes
of this section; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
(e) Interaction with Other Grant Programs.--No institution
that is eligible for and receives an award under section 326,
512, or [724] 712 for a fiscal year shall be eligible to apply
for a grant, or receive grant funds, under this section for the
same fiscal year.
(f) Funding Rule.--Subject to subsection (g), of the amount
appropriated to carry out this section for any fiscal year--
(1) the first $9,000,000 (or any lesser amount
appropriated) shall be available only for the purposes
of making minimum grants under subsection (a)(3) to
eligible institutions listed in subparagraphs (A)
through (R) of subsection (b)(1), except that if the
amount appropriated is not sufficient to pay the
minimum grant awards to all such eligible institutions,
the amount of the minimum award to each such eligible
institution shall be ratably reduced;
(2) after the application of paragraph (1), an amount
shall be available for the purpose of making minimum
grants under subsection (a)(3) to eligible institutions
listed in subsection (b)(1) that do not receive a grant
under paragraph (1), if any, except that if the amount
appropriated is not sufficient to pay the minimum grant
awards to all such eligible institutions, the amount of
the minimum award to each such eligible institution
shall be ratably reduced; and
(3) any amount in excess of $9,000,000 shall be made
available to each of the eligible institutions
identified in subparagraphs (A) through (R) of
subsection (b)(1), pursuant to a formula developed by
the Secretary that uses the following elements:
(A) The ability of the institution to match
Federal funds with non-Federal funds.
(B) The number of students enrolled in the
qualified masters degree program at the
eligible institution in the previous academic
year.
(C) The average cost of attendance per
student, for all full-time students enrolled in
the qualified masters degree program at such
institution.
(D) The number of students in the previous
year who received a degree in the qualified
masters degree program at such institution.
(E) The contribution, on a percent basis, of
the programs for which the institution is
eligible to receive funds under this section to
the total number of African Americans receiving
masters degrees in the disciplines related to
the programs for the previous year.
(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and
(3) of subsection (f), no eligible institution identified in
subsection (b)(1) that receives a grant under this section for
fiscal year 2009 and that is eligible to receive a grant for a
subsequent fiscal year shall receive a grant amount for any
such subsequent fiscal year that is less than the grant amount
received for fiscal year 2009, unless--
(1) the amount appropriated is not sufficient to
provide such grant amounts to all such institutions and
programs that received grants under this section for
such fiscal year and that are eligible to receive a
grant in such subsequent fiscal year; or
(2) the institution cannot provide sufficient
matching funds to meet the requirements of this
section.
SEC. [724.] 712. MASTERS DEGREE PROGRAMS AT PREDOMINANTLY BLACK
INSTITUTIONS.
(a) Grant Program Authorized.--
(1) In general.--Subject to the availability of funds
appropriated to carry out this section, the Secretary
shall award program grants to each of the institutions
listed in subsection (b)(1) that is determined by the
Secretary to be making a substantial contribution to
graduate education opportunities at the masters level
in mathematics, engineering, the physical or natural
sciences, computer science, information technology,
nursing, allied health, or other scientific disciplines
for Black Americans.
(2) Assurance of non-federal matching funds.--No
grant in excess of $1,000,000 may be made under this
section unless the institution provides assurances that
50 percent of the cost of the purposes for which the
grant is made will be paid from non-Federal sources,
except that no institution shall be required to match
any portion of the first $1,000,000 of the
institution's award from the Secretary. After funds are
made available to each eligible institution under the
funding rules described in subsection (f), the
Secretary shall distribute, on a pro rata basis, any
amounts which were not so made available (by reason of
the failure of an institution to comply with the
matching requirements of this paragraph) among the
institutions that have complied with such matching
requirement.
(3) Minimum award.--Subject to subsections (f) and
(g), the amount awarded to each eligible institution
listed in subsection (b)(1) for a fiscal year shall be
not less than $500,000.
(4) Duration of grants.--A grant awarded under this
section shall be for a period of not more than six
years, but may be periodically renewed for a period to
be determined by the Secretary.
(b) Institutional Eligibility.--
(1) In general.--Institutions eligible for grants
under subsection (a) are the following:
(A) Chicago State University.
(B) Columbia Union College.
(C) Long Island University, Brooklyn campus.
(D) Robert Morris College.
(E) York College, The City University of New
York.
(2) Qualified masters degree program.--
(A) In general.--For the purposes of this
section, the term ``qualified masters degree
program'' means a masters degree program that
provides a program of instruction in
mathematics, engineering, the physical or
natural sciences, computer science, information
technology, nursing, allied health, or other
scientific disciplines in which African
Americans are underrepresented and has students
enrolled in such program of instruction at the
time of application for a grant under this
section.
(B) Enrollment exception.--Notwithstanding
the enrollment requirement contained in
subparagraph (A), an institution may use an
amount equal to not more than 10 percent of the
institution's grant under this section for the
development of a new qualified masters degree
program.
(3) Institutional choice.--The president or
chancellor of the institution may decide which graduate
school or qualified masters degree program will receive
funds under the grant in any one fiscal year, if the
allocation of funds among the schools or programs is
delineated in the application for funds submitted to
the Secretary under this section.
(4) One grant per institution.--The Secretary shall
not award more than one grant under this section in any
fiscal year to any institution of higher education.
(c) Application.--An eligible institution listed in
subsection (b)(1) desiring a grant under this section shall
submit an application at such time, in such manner, and
containing such information as the Secretary may require. The
application shall--
(1) demonstrate how the grant funds under this
section will be used to improve graduate educational
opportunities for Black and low-income students and
lead to greater financial independence; and
(2) provide, in the case of applications for grants
in excess of $1,000,000, the assurances required under
subsection (a)(2) and specify the manner in which the
eligible institution is going to pay the non-Federal
share of the cost of the application.
(d) Uses of Funds.--A grant under this section may be used
for--
(1) purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes;
(2) construction, maintenance, renovation, and
improvement in classroom, library, laboratory, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services;
(3) purchase of library books, periodicals, technical
and other scientific journals, microfilm, microfiche,
and other educational materials, including
telecommunications program materials;
(4) scholarships, fellowships, and other financial
assistance for needy graduate students to permit the
enrollment of the students in, and completion of, a
masters degree in mathematics, engineering, the
physical or natural sciences, computer science,
information technology, nursing, allied health, or
other scientific disciplines in which African Americans
are underrepresented;
(5) establishing or improving a development office to
strengthen and increase contributions from alumni and
the private sector;
(6) assisting in the establishment or maintenance of
an institutional endowment to facilitate financial
independence pursuant to section 331;
(7) funds and administrative management, and the
acquisition of equipment, including software, for use
in strengthening funds management and management
information systems;
(8) acquisition of real property that is adjacent to
the campus in connection with the construction,
renovation, or improvement of, or an addition to,
campus facilities;
(9) education or financial information designed to
improve the financial literacy and economic literacy of
students or the students' families, especially with
regard to student indebtedness and student assistance
programs under title IV;
(10) tutoring, counseling, and student service
programs designed to improve academic success;
(11) faculty professional development, faculty
exchanges, and faculty participation in professional
conferences and meetings; and
(12) other activities proposed in the application
submitted under subsection (c) that--
(A) contribute to carrying out the purposes
of this section; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
(e) Interaction with Other Grant Programs.--No institution
that is eligible for and receives an award under section 326,
512, or [723] 711 for a fiscal year shall be eligible to apply
for a grant, or receive grant funds, under this section for the
same fiscal year.
(f) Funding Rule.--Subject to subsection (g), of the amount
appropriated to carry out this section for any fiscal year--
(1) the first $2,500,000 (or any lesser amount
appropriated) shall be available only for the purposes
of making minimum grants under subsection (a)(3) to
eligible institutions listed in subparagraphs (A)
through (E) of subsection (b)(1), except that if the
amount appropriated is not sufficient to pay the
minimum grant awards to all such eligible institutions,
the amount of the minimum award to each such eligible
institution shall be ratably reduced;
(2) after the application of paragraph (1), an amount
shall be available for the purpose of making minimum
grants under subsection (a)(3) to eligible institutions
described in subsection (b)(1) that do not receive a
grant under paragraph (1), if any, except that if the
amount appropriated is not sufficient to pay the
minimum grant awards to all such eligible institutions,
the amount of the minimum award to each such eligible
institution shall be ratably reduced; and
(3) any amount in excess of $2,500,000 shall be made
available to each of the eligible institutions
identified in subparagraphs (A) through (E) of
subsection (b)(1), pursuant to a formula developed by
the Secretary that uses the following elements:
(A) The ability of the institution to match
Federal funds with non-Federal funds.
(B) The number of students enrolled in the
qualified masters degree program at the
eligible institution in the previous academic
year.
(C) The average cost of attendance per
student, for all full-time students enrolled in
the qualified masters degree program at such
institution.
(D) The number of students in the previous
year who received a degree in the qualified
masters degree program at such institution.
(E) The contribution, on a percent basis, of
the programs for which the institution is
eligible to receive funds under this section to
the total number of African Americans receiving
masters degrees in the disciplines related to
the programs for the previous year.
(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and
(3) of subsection (f), no eligible institution identified in
subsection (b)(1) that receives a grant under this section for
fiscal year 2009 and that is eligible to receive a grant in a
subsequent fiscal year shall receive a grant amount in any such
subsequent fiscal year that is less than the grant amount
received for fiscal year 2009, unless--
(1) the amount appropriated is not sufficient to
provide such grant amounts to all such institutions and
programs that received grants under this section for
such fiscal year and that are eligible to receive a
grant in such subsequent fiscal year; or
(2) the institution cannot provide sufficient
matching funds to meet the requirements of this
section.
SEC. [725.] 713. AUTHORIZATION OF APPROPRIATIONS.
(a) Masters Degree Programs at Historically Black Colleges
and Universities.--There are authorized to be appropriated to
carry out [section 723 such sums as may be necessary for fiscal
year 2009 and each of the five succeeding fiscal years.]
section 711, $7,500,000 for fiscal year 2019 and each of the
five succeeding fiscal years.
(b) Masters Degree Programs at Predominantly Black
Institutions.--There are authorized to be appropriated to carry
out [section 724] section 712 such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.
Subpart [5] 3--General Provisions
SEC. [731.] 721. ADMINISTRATIVE PROVISIONS FOR SUBPARTS 1 [THROUGH 4]
AND 2.
(a) Coordinated Administration.--In carrying out the purpose
described in section 700(1), the Secretary shall provide for
coordinated administration and regulation of graduate programs
assisted under [subparts 1 through 4] subparts 1 and 2 with
other Federal programs providing assistance for graduate
education in order to minimize duplication and improve
efficiency to ensure that the programs are carried out in a
manner most compatible with academic practices and with the
standard timetables for applications for, and notifications of
acceptance to, graduate programs.
(b) Hiring Authority.--For purposes of carrying out [subparts
1 through 4] subparts 1 and 2, the Secretary shall appoint,
without regard to the provisions of title 5, United States
Code, that govern appointments in the competitive service, such
administrative and technical employees, with the appropriate
educational background, as shall be needed to assist in the
administration of such parts. The employees shall be paid
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to classification and
General Schedule pay rates.
(c) Use for Religious Purposes Prohibited.--No institutional
payment or allowance under [section 703(b) or 715(a)] section
705(a) shall be paid to a school or department of divinity as a
result of the award of a fellowship under [subpart 1 or 2,
respectively,] subpart 1 to an individual who is studying for a
religious vocation.
(d) Evaluation.--The Secretary shall evaluate the success of
assistance provided to individuals under [subpart 1, 2, 3, or
4] subpart 1 or 2 with respect to graduating from their degree
programs, and placement in faculty and professional positions.
[PART B--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION
[SEC. 741. FUND FOR THE IMPROVEMENT OF POSTSECONDARY
EDUCATION.
[(a) Authority.--The Secretary is authorized to make grants
to, or enter into contracts with, institutions of higher
education, combinations of such institutions, and other public
and private nonprofit institutions and agencies, to enable such
institutions, combinations, and agencies to improve
postsecondary education opportunities by--
[(1) the encouragement of reform and improvement of,
and innovation in, postsecondary education and the
provision of educational opportunity for all students,
including nontraditional students;
[(2) the creation of institutions, programs, and
joint efforts involving paths to career and
professional training, including--
[(A) efforts that provide academic credit for
programs; and
[(B) combinations of academic and
experiential learning;
[(3) the establishment and continuation of
institutions, programs, consortia, collaborations, and
other joint efforts based on communications technology,
including those efforts that utilize distance education
and technological advancements to educate and train
postsecondary students (including health professionals
serving medically underserved populations);
[(4) the carrying out, in postsecondary educational
institutions, of changes in internal structure and
operations designed to clarify institutional priorities
and purposes;
[(5) the design and introduction of cost-effective
methods of instruction and operation;
[(6) the introduction of institutional reforms
designed to expand individual opportunities for
entering and reentering postsecondary institutions and
pursuing programs of postsecondary study tailored to
individual needs;
[(7) the introduction of reforms in graduate
education, in the structure of academic professions,
and in the recruitment and retention of faculties;
[(8) the creation of new institutions and programs
for examining and awarding credentials to individuals,
and the introduction of reforms in current
institutional practices related thereto;
[(9) the introduction of reforms in remedial
education, including English language instruction, to
customize remedial courses to student goals and help
students progress rapidly from remedial courses into
core courses and through postsecondary program
completion;
[(10) the provision of support and assistance to
partnerships between institutions of higher education
and secondary schools with a significant population of
students identified as late-entering limited English
proficient students, to establish programs that--
[(A) result in increased secondary school
graduation rates of limited English proficient
students; and
[(B) increase the number of participating
late-entering limited English proficient
students who pursue postsecondary education;
[(11) the creation of consortia that join diverse
institutions of higher education to design and offer
curricular and cocurricular interdisciplinary programs
at the undergraduate and graduate levels, sustained for
not less than a 5 year period, that--
[(A) focus on poverty and human capability;
and
[(B) include--
[(i) a service-learning component;
and
[(ii) the delivery of educational
services through informational resource
centers, summer institutes, midyear
seminars, and other educational
activities that stress the effects of
poverty and how poverty can be
alleviated through different career
paths;
[(12) the provision of support and assistance for
demonstration projects to provide comprehensive support
services to ensure that homeless students, or students
who were in foster care or were a ward of the court at
any time before the age of 13, enroll and succeed in
postsecondary education, including providing housing to
such students during periods when housing at the
institution of higher education is closed or generally
unavailable to other students; and
[(13) the support of efforts to work with
institutions of higher education, and nonprofit
organizations, that seek to promote cultural diversity
in the entertainment media industry, including through
the training of students in production, marketing, and
distribution of culturally relevant content.
[(b) Planning Grants.--The Secretary is authorized to make
planning grants to institutions of higher education for the
development and testing of innovative techniques in
postsecondary education. Such grants shall not exceed $20,000.
[(c) Center for Best Practices To Support Single Parent
Students.--
[(1) Program authorized.--The Secretary is authorized
to award one grant or contract to an institution of
higher education to enable such institution to
establish and maintain a center to study and develop
best practices for institutions of higher education to
support single parents who are also students attending
such institutions.
[(2) Institution requirements.--The Secretary shall
award the grant or contract under this subsection to a
four-year institution of higher education that has
demonstrated expertise in the development of programs
to assist single parents who are students at
institutions of higher education, as shown by the
institution's development of a variety of targeted
services to such students, including on-campus housing,
child care, counseling, advising, internship
opportunities, financial aid, and financial aid
counseling and assistance.
[(3) Center activities.--The center funded under this
section shall--
[(A) assist institutions implementing
innovative programs that support single parents
pursuing higher education;
[(B) study and develop an evaluation protocol
for such programs that includes quantitative
and qualitative methodologies;
[(C) provide appropriate technical assistance
regarding the replication, evaluation, and
continuous improvement of such programs; and
[(D) develop and disseminate best practices
for such programs.
[(d) Prohibition.--
[(1) In general.--No funds made available under this
part shall be used to provide direct financial
assistance in the form of grants or scholarships to
students who do not meet the requirements of section
484(a).
[(2) Rule of construction.--Nothing in this
subsection shall be construed to prevent a student who
does not meet the requirements of section 484(a) from
participating in programs funded under this part.
[(e) Priority.--In making grants under this part to any
institution of higher education after the date of enactment of
theHigher Education Opportunity Act, the Secretary may give
priority to institutions that meet or exceed the most current
version of ASHRAE/IES Standard 90.1 (as such term is used in
section 342(a)(6) of the Energy Policy and Conservation Act (42
U.S.C. 6313(a)(6)) for any new facilities construction or major
renovation of the institution after such date, except that this
subsection shall not apply with respect to barns or greenhouses
or similar structures owned by the institution.
[(f) Scholarship Program for Family Members of Veterans or
Members of the Military.--
[(1) Authorization.--The Secretary shall enter into a
contract with a nonprofit organization with
demonstrated success in carrying out the activities
described in this subsection to carry out a program to
provide postsecondary education scholarships for
eligible students.
[(2) Definition of eligible student.--In this
subsection, the term ``eligible student'' means an
individual who is enrolled as a full-time or part-time
student at an institution of higher education (as
defined in section 102) and is--
[(A) a dependent student who is a child of--
[(i) an individual who is--
[(I) serving on active duty
during a war or other military
operation or national emergency
(as defined in section 481); or
[(II) performing qualifying
National Guard duty during a
war or other military operation
or national emergency (as
defined in section 481); or
[(ii) a veteran who--
[(I) served or performed, as
described in clause (i), since
September 11, 2001; and
[(II) died, or has been
disabled, as a result of such
service or performance; or
[(B) an independent student who--
[(i) is a spouse of an individual who
is--
[(I) serving on active duty
during a war or other military
operation or national emergency
(as defined in section 481); or
[(II) performing qualifying
National Guard duty during a
war or other military operation
or national emergency (as
defined in section 481);
[(ii) was (at the time of death of
the veteran) a spouse of a veteran
who--
[(I) served or performed, as
described in clause (i), since
September 11, 2001; and
[(II) died as a result of
such service or performance; or
[(iii) is a spouse of a veteran who--
[(I) served or performed, as
described in clause (i), since
September 11, 2001; and
[(II) has been disabled as a
result of such service or
performance.
[(3) Awarding of scholarships.--Scholarships awarded
under this subsection shall be awarded based on need
with priority given to eligible students who are
eligible to receive Federal Pell Grants under subpart 1
of part A of title IV.
[(4) Maximum scholarship amount.--The maximum
scholarship amount awarded to an eligible student under
this subsection for an award year shall be the lesser
of $5,000, or the student's cost of attendance (as
defined in section 472).
[(5) Amounts for scholarships.--All of the amounts
appropriated to carry out this subsection for a fiscal
year shall be used for scholarships awarded under this
subsection, except that the nonprofit organization
receiving a contract under this subsection may use not
more than one percent of such amounts for the
administrative costs of the contract.
[SEC. 742. BOARD OF THE FUND FOR THE IMPROVEMENT OF POSTSECONDARY
EDUCATION.
[(a) Establishment.--There is established a National Board of
the Fund for the Improvement of Postsecondary Education (in
this part referred to as the ``Board''). The Board shall
consist of 15 members appointed by the Secretary for
overlapping 3-year terms. A majority of the Board shall
constitute a quorum. Any member of the Board who has served for
6 consecutive years shall thereafter be ineligible for
appointment to the Board during a 2-year period following the
expiration of such sixth year.
[(b) Membership.--The Secretary shall designate one of the
members of the Board as Chairperson of the Board. A majority of
the members of the Board shall be public interest
representatives, including students, and a minority shall be
educational representatives. All members selected shall be
individuals able to contribute an important perspective on
priorities for improvement in postsecondary education and
strategies of educational and institutional change.
[(c) Duties.--The Board shall--
[(1) advise the Secretary on priorities for the
improvement of postsecondary education and make such
recommendations as the Board may deem appropriate for
the improvement of postsecondary education and for the
evaluation, dissemination, and adaptation of
demonstrated improvements in postsecondary educational
practice;
[(2) advise the Secretary on the operation of the
Fund for the Improvement of Postsecondary Education,
including advice on planning documents, guidelines, and
procedures for grant competitions prepared by the Fund;
and
[(3) meet at the call of the Chairperson, except that
the Board shall meet whenever one-third or more of the
members request in writing that a meeting be held.
[(d) Information and Assistance.--The Secretary shall make
available to the Board such information and assistance as may
be necessary to enable the Board to carry out its functions.
[SEC. 743. ADMINISTRATIVE PROVISIONS.
[The Secretary may appoint, for terms not to exceed 3 years,
without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service, not
more than 7 technical employees to administer this part who may
be paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates.
[SEC. 744. SPECIAL PROJECTS.
[(a) Grant Authority.--The Secretary is authorized to make
grants to institutions of higher education, or consortia
thereof, and such other public agencies and nonprofit
organizations as the Secretary deems necessary for innovative
projects concerning one or more areas of particular national
need identified by the Secretary.
[(b) Application.--No grant shall be made under this part
unless an application is made at such time, in such manner, and
contains or is accompanied by such information as the Secretary
may require.
[(c) Areas of National Need.--Areas of national need shall
include, at a minimum, the following:
[(1) Institutional restructuring to improve learning
and promote productivity, efficiency, quality
improvement, and cost reduction.
[(2) Improvements in academic instruction and student
learning, including efforts designed to assess the
learning gains made by postsecondary students.
[(3) Articulation between two- and four-year
institutions of higher education, including developing
innovative methods for ensuring the successful transfer
of students from two- to four-year institutions of
higher education.
[(4) Development, evaluation, and dissemination of
model courses, including model courses that--
[(A) provide students with a broad and
integrated knowledge base;
[(B) include, at a minimum, broad survey
courses in English literature, American and
world history, American political institutions,
economics, philosophy, college-level
mathematics, and the natural sciences; and
[(C) include study of a foreign language that
leads to reading and writing competency in the
foreign language.
[(5) International cooperation and student exchanges
among postsecondary educational institutions.
[(6) Support of centers to incorporate education in
quality and safety into the preparation of medical and
nursing students, through grants to medical schools,
nursing schools, and osteopathic schools. Such grants
shall be used to assist in providing courses of
instruction that specifically equip students to--
[(A) understand the causes of, and remedies
for, medical error, medically induced patient
injuries and complications, and other defects
in medical care;
[(B) engage effectively in personal and
systemic efforts to continually reduce medical
harm; and
[(C) improve patient care and outcomes, as
recommended by the Institute of Medicine of the
National Academies.
[SEC. 745. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
part such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years.]
PART [D] B--PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A
QUALITY HIGHER EDUCATION
SEC. [760.] 730. DEFINITIONS.
In this part:
(1) Comprehensive transition and postsecondary
program for students with intellectual disabilities.--
The term ``comprehensive transition and postsecondary
program for students with intellectual disabilities''
means a degree, certificate, or nondegree program that
meets each of the following:
(A) Is offered by an institution of higher
education.
(B) Is designed to support students with
intellectual disabilities who are seeking to
continue academic, career and technical, and
independent living instruction at an
institution of higher education in order to
prepare for gainful employment.
(C) Includes an advising and curriculum
structure.
(D) Requires students with intellectual
disabilities to participate on not less than a
half-time basis as determined by the
institution, with such participation focusing
on academic components, and occurring through 1
or more of the following activities:
(i) Regular enrollment in credit-
bearing courses with nondisabled
students offered by the institution.
(ii) Auditing or participating in
courses with nondisabled students
offered by the institution for which
the student does not receive regular
academic credit.
(iii) Enrollment in noncredit-
bearing, nondegree courses with
nondisabled students.
(iv) Participation in internships or
work-based training in settings with
nondisabled individuals.
(E) Requires students with intellectual
disabilities to be socially and academically
integrated with non-disabled students to the
maximum extent possible.
(2) Student with an intellectual disability.--The
term ``student with an intellectual disability'' means
a student--
(A) with a cognitive impairment,
characterized by significant limitations in--
(i) intellectual and cognitive
functioning; and
(ii) adaptive behavior as expressed
in conceptual, social, and practical
adaptive skills; and
(B) who is currently, or was formerly,
eligible for a free appropriate public
education under the Individuals with
Disabilities Education Act.
[Subpart 1--Demonstration Projects to Support Postsecondary Faculty,
Staff, and Administrators in Educating Students with Disabilities
[SEC. 761. PURPOSE.
[It is the purpose of this subpart to support model
demonstration projects to provide technical assistance or
professional development for postsecondary faculty, staff, and
administrators in institutions of higher education to enable
such faculty, staff, and administrators to provide students
with disabilities with a quality postsecondary education.
[SEC. 762. GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS AUTHORIZED.
[(a) Competitive Grants, Contracts, and Cooperative
Agreements Authorized.--
[(1) In general.--From amounts appropriated under
section 765, the Secretary may award grants, contracts,
and cooperative agreements, on a competitive basis, to
institutions of higher education to enable the
institutions to carry out the activities under
subsection (b).
[(2) Awards for professional development and
technical assistance.--Not less than two grants,
contracts, cooperative agreements, or a combination of
such awards shall be awarded to institutions of higher
education that provide professional development and
technical assistance in order for students with
learning disabilities to receive a quality
postsecondary education.
[(b) Duration; Activities.--
[(1) Duration.--A grant, contract, or cooperative
agreement under this subpart shall be awarded for a
period of three years.
[(2) Authorized activities.--A grant, contract, or
cooperative agreement awarded under this subpart shall
be used to carry out one or more of the following
activities:
[(A) Teaching methods and strategies.--The
development of innovative, effective, and
efficient teaching methods and strategies,
consistent with the principles of universal
design for learning, to provide postsecondary
faculty, staff, and administrators with the
skills and supports necessary to teach and meet
the academic and programmatic needs of students
with disabilities, in order to improve the
retention of such students in, and the
completion by such students of, postsecondary
education. Such methods and strategies may
include in-service training, professional
development, customized and general technical
assistance, workshops, summer institutes,
distance learning, and training in the use of
assistive and educational technology.
[(B) Effective transition practices.--The
development of innovative and effective
teaching methods and strategies to provide
postsecondary faculty, staff, and
administrators with the skill and supports
necessary to ensure the successful and smooth
transition of students with disabilities from
secondary school to postsecondary education.
[(C) Synthesizing research and information.--
The synthesis of research and other information
related to the provision of postsecondary
educational services to students with
disabilities, including data on the impact of a
postsecondary education on subsequent
employment of students with disabilities. Such
research, information, and data shall be made
publicly available and accessible.
[(D) Distance learning.--The development of
innovative and effective teaching methods and
strategies to provide postsecondary faculty,
staff, and administrators with the ability to
provide accessible distance education programs
or classes that would enhance the access of
students with disabilities to postsecondary
education, including the use of accessible
curricula and electronic communication for
instruction and advising.
[(E) Disability career pathways.--
[(i) In general.--The provision of
information, training, and technical
assistance to secondary and
postsecondary faculty, staff, and
administrators with respect to
disability-related fields that would
enable such faculty, staff, and
administrators to--
[(I) encourage interest and
participation in such fields,
among students with
disabilities and other
students;
[(II) enhance awareness and
understanding of such fields
among students with
disabilities and other
students;
[(III) provide educational
opportunities in such fields
for students with disabilities
and other students;
[(IV) teach practical skills
related to such fields to
students with disabilities and
other students; and
[(V) offer work-based
opportunities in such fields to
students with disabilities and
other students.
[(ii) Development.--The training and
support described in subclauses (I)
through (V) of clause (i) may include
offering students--
[(I) credit-bearing
postsecondary-level coursework;
and
[(II) career and educational
counseling.
[(F) Professional development and training
sessions.--The conduct of professional
development and training sessions for
postsecondary faculty, staff, and
administrators from other institutions of
higher education to enable such individuals to
meet the educational needs of students with
disabilities.
[(G) Accessibility of education.--Making
postsecondary education more accessible to
students with disabilities through curriculum
development, consistent with the principles of
universal design for learning.
[(3) Mandatory evaluation and dissemination.--An
institution of higher education awarded a grant,
contract, or cooperative agreement under this subpart
shall evaluate and disseminate to other institutions of
higher education, the information obtained through the
activities described in subparagraphs (A) through (G)
of paragraph (2).
[(c) Considerations in Making Awards.--In awarding grants,
contracts, or cooperative agreements under this subpart, the
Secretary shall consider the following:
[(1) Geographic distribution.--Providing an equitable
geographic distribution of such awards.
[(2) Rural and urban areas.--Distributing such awards
to urban and rural areas.
[(3) Range and type of institution.--Ensuring that
the activities to be assisted are developed for a range
of types and sizes of institutions of higher education.
[(4) Prior experience or exceptional programs.--
Distributing the awards to institutions of higher
education with demonstrated prior experience in, or
exceptional programs for, meeting the postsecondary
educational needs of students with disabilities.
[(d) Reports.--
[(1) Initial report.--Not later than one year after
the date of enactment of the Higher Education
Opportunity Act, the Secretary shall prepare and submit
to the authorizing committees, and make available to
the public, a report on all demonstration projects
awarded grants under this part for any of fiscal years
1999 through 2008, including a review of the activities
and program performance of such demonstration projects
based on existing information as of the date of the
report.
[(2) Subsequent report.--Not later than three years
after the date of the first award of a grant under this
subpart after the date of enactment of the Higher
Education Opportunity Act, the Secretary shall prepare
and submit to the authorizing committees, and make
available to the public, a report that--
[(A) reviews the activities and program
performance of the demonstration projects
authorized under this subpart; and
[(B) provides guidance and recommendations on
how effective projects can be replicated.
[SEC. 763. APPLICATIONS.
[Each institution of higher education desiring to receive a
grant, contract, or cooperative agreement under this subpart
shall submit an application to the Secretary at such time, in
such manner, and accompanied by such information as the
Secretary may require. Each application shall include--
[(1) a description of the activities authorized under
this subpart that the institution proposes to carry
out, and how such institution plans to conduct such
activities in order to further the purpose of this
subpart;
[(2) a description of how the institution consulted
with a broad range of people within the institution to
develop activities for which assistance is sought;
[(3) a description of how the institution will
coordinate and collaborate with the office that
provides services to students with disabilities within
the institution; and
[(4) a description of the extent to which the
institution will work to replicate the research-based
and best practices of institutions of higher education
with demonstrated effectiveness in serving students
with disabilities.
[SEC. 764. RULE OF CONSTRUCTION.
[Nothing in this subpart shall be construed to impose any
additional duty, obligation, or responsibility on an
institution of higher education or on the institution's
faculty, administrators, or staff than is required under
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794)
and the Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.).
[SEC. 765. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
subpart such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years.]
Subpart [2] 1--Transition Programs for Students with Intellectual
Disabilities Into Higher Education
SEC. [766.] 731. PURPOSE.
It is the purpose of this subpart to support model
demonstration programs that promote the successful transition
of students with intellectual disabilities into higher
education.
SEC. [767.] 732. MODEL COMPREHENSIVE TRANSITION AND POSTSECONDARY
PROGRAMS FOR STUDENTS WITH INTELLECTUAL
DISABILITIES.
(a) Grants Authorized.--
(1) In general.--From amounts appropriated under
[section 769(a)] section 736(a), the Secretary shall
annually award grants, on a competitive basis, to
[institutions of higher education (or consortia of
institutions of higher education), to enable the
institutions or consortia] eligible applicants, to
enable the eligible applicants to create or expand high
quality, inclusive model comprehensive transition and
postsecondary programs for students with intellectual
disabilities.
(2) Administration.--The program under this section
shall be administered by the office in the Department
that administers other postsecondary education
programs.
(3) Duration of grants.--A grant under this section
shall be awarded for a period of 5 years.
[(b) Application.--An institution of higher education (or a
consortium) desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.]
(b) Application.--An eligible applicant desiring a grant
under this section shall submit to the Secretary, at such time
and in such manner as the Secretary may require, an application
that--
(1) describes how the model program to be operated by
the eligible applicant with grant funds received under
this section will meet the requirements of subsection
(d);
(2) describes how the model program proposed to be
operated is based on the demonstrated needs of students
with intellectual disabilities served by the eligible
applicant and potential employers;
(3) describes how the model program proposed to be
operated will coordinate with other Federal, State, and
local programs serving students with intellectual
disabilities, including programs funded under the
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
(4) describes how the model program will be sustained
once the grant received under this section ends;
(5) if applicable, describes how the eligible
applicant will meet the preferences described in
subsection (c)(3); and
(6) demonstrates the ability of the eligible
applicant to meet the requirement under subsection (e).
(c) Award Basis.--In awarding grants under this section, the
Secretary shall--
(1) provide for an equitable geographic distribution
of such grants;
(2) provide grant funds for model comprehensive
transition and postsecondary programs for students with
intellectual disabilities that will serve areas that
are underserved by programs of this type; and
(3) give preference to applications submitted under
subsection (b) that agree to incorporate into the model
comprehensive transition and postsecondary program for
students with intellectual disabilities carried out
under the grant one or more of the following elements:
(A) The formation of a partnership with any
relevant agency serving students with
intellectual disabilities, such as a vocational
rehabilitation agency.
(B) In the case of an [institution of higher
education] eligible applicant that provides
institutionally owned or operated housing for
students attending the institution, the
integration of students with intellectual
disabilities into the housing offered to
nondisabled students.
(C) The involvement of [students attending
the institution of higher education] the
eligible applicant's students who are studying
special education, general education,
vocational rehabilitation, assistive
technology, or related fields in the model
program.
(d) Use of Funds.--[An institution of higher education (or
consortium)] An eligible applicant receiving a grant under this
section shall use the grant funds to establish a model
comprehensive transition and postsecondary program for students
with intellectual disabilities that--
(1) serves students with intellectual disabilities;
(2) provides individual supports and services for the
academic and social inclusion of students with
intellectual disabilities in academic courses,
extracurricular activities, and other aspects of the
[institution of higher education's] eligible
applicant's regular postsecondary program;
(3) with respect to the students with intellectual
disabilities participating in the model program,
provides a focus on--
(A) academic enrichment;
(B) socialization;
(C) independent living skills, including
self-advocacy skills; and
(D) integrated work experiences and career
skills [that lead to gainful employment];
(4) integrates person-centered planning in the
development of the course of study for each student
with an intellectual disability participating in the
model program;
(5) participates with the coordinating center
established under [section 777(b)] section 734 in the
evaluation of the model program;
(6) partners with one or more local educational
agencies to support students with intellectual
disabilities participating in the model program who are
still eligible for special education and related
services under the Individuals with Disabilities
Education Act, including the use of funds available
under part B of such Act to support the participation
of such students in the model program; and
[(7) plans for the sustainability of the model
program after the end of the grant period; and]
[(8)] (7) creates and offers a meaningful credential
for students with intellectual disabilities upon the
completion of the model program.
(e) Matching Requirement.--[An institution of higher
education (or consortium)] An eligible applicant that receives
a grant under this section shall provide matching funds toward
the cost of the model comprehensive transition and
postsecondary program for students with intellectual
disabilities carried out under the grant. Such matching funds
may be provided in cash or in-kind, and shall be in an amount
of not less than 25 percent of the amount of such costs.
(f) Report.--[Not later than five years after the date of the
first grant awarded under this section] Not less often than
once every 5 years, the Secretary shall prepare and disseminate
a report to the authorizing committees and to the public that--
(1) reviews the activities of the model comprehensive
transition and postsecondary programs for students with
intellectual disabilities funded under this section;
and
(2) provides guidance and recommendations on how
effective model programs can be replicated.
(g) Definition.--For purposes of this subpart, the term
``eligible applicant'' means an institution of higher education
or a consortium of institutions of higher education.
SEC. [768.] 733. RULE OF CONSTRUCTION.
Nothing in this subpart shall be construed to reduce or
expand--
(1) the obligation of a State or local educational
agency to provide a free appropriate public education,
as defined in section 602 of the Individuals with
Disabilities Education Act; or
(2) eligibility requirements under any Federal,
State, or local disability law, including the Americans
with Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.), the Rehabilitation Act of 1973 (29 U.S.C. 701 et
seq.), or the Developmental Disabilities Assistance and
Bill of Rights Act of 2000 (42 U.S.C. 15001 et seq.).
SEC. 734. COORDINATING CENTER.
(a) Purpose.--It is the purpose of this section to provide
technical assistance and information on best and promising
practices to eligible applicants awarded grants under section
732.
(b) Coordinating center.--
(1) Definition of eligible entity.--In this section,
the term ``eligible entity'' means an entity, or a
partnership of entities, that has demonstrated
expertise in the fields of--
(A) higher education;
(B) the education of students with
intellectual disabilities;
(C) the development of comprehensive
transition and postsecondary programs for
students with intellectual disabilities; and
(D) evaluation and technical assistance.
(2) In general.--From amounts appropriated under
section 736, the Secretary shall enter into a
cooperative agreement, on a competitive basis, with an
eligible entity for the purpose of establishing a
coordinating center for institutions of higher
education that offer inclusive comprehensive transition
and postsecondary programs for students with
intellectual disabilities, including eligible
applicants receiving grants under section 732, to
provide--
(A) recommendations related to the
development of standards for such programs;
(B) technical assistance for such programs;
and
(C) evaluations for such programs.
(3) Administration.--The program under this section
shall be administered by the office in the Department
that administers other postsecondary education
programs.
(4) Duration.--A cooperative agreement entered into
pursuant to this section shall have a term of 5 years.
(5) Requirements of cooperative agreement.--The
cooperative agreement entered into pursuant to this
section shall provide that the eligible entity entering
into such agreement shall establish and maintain a
coordinating center that shall--
(A) serve as the technical assistance entity
for all comprehensive transition and
postsecondary programs for students with
intellectual disabilities;
(B) provide technical assistance regarding
the development, evaluation, and continuous
improvement of such programs;
(C) develop an evaluation protocol for such
programs that includes qualitative and
quantitative methodologies for measuring
student outcomes and program strengths in the
areas of academic enrichment, socialization,
independent living, and competitive or
supported employment;
(D) assist recipients of grants under section
732 in efforts to award a meaningful credential
to students with intellectual disabilities upon
the completion of such programs, which
credential shall take into consideration unique
State factors;
(E) develop recommendations for the necessary
components of such programs, such as--
(i) academic, vocational, social, and
independent living skills;
(ii) evaluation of student progress;
(iii) program administration and
evaluation;
(iv) student eligibility; and
(v) issues regarding the equivalency
of a student's participation in such
programs to semester, trimester,
quarter, credit, or clock hours at an
institution of higher education, as the
case may be;
(F) analyze possible funding sources for such
programs and provide recommendations to such
programs regarding potential funding sources;
(G) develop model memoranda of agreement for
use between or among institutions of higher
education and State and local agencies
providing funding for such programs;
(H) develop mechanisms for regular
communication, outreach, and dissemination of
information about comprehensive transition and
postsecondary programs for students with
intellectual disabilities under section 732
between or among such programs and to families
and prospective students;
(I) host a meeting of all recipients of
grants under section 732 not less often than
once every 3 years; and
(J) convene a workgroup to develop and
recommend model criteria, standards, and
components of such programs as described in
subparagraph (E) that are appropriate for the
development of accreditation standards, which
workgroup shall include--
(i) an expert in higher education;
(ii) an expert in special education;
(iii) a representative of a
disability organization that represents
students with intellectual
disabilities;
(iv) a representative from the
National Advisory Committee on
Institutional Quality and Integrity;
and
(v) a representative of a regional or
national accreditation agency or
association.
(6) Report.--Not less often than once every 5 years,
the coordinating center shall report to the Secretary,
the authorizing committees, and the National Advisory
Committee on Institutional Quality and Integrity on the
recommendations of the workgroup described in paragraph
(5)(J).
SEC. 735. ACCESSIBLE INSTRUCTIONAL MATERIALS IN HIGHER EDUCATION.
(a) Commission structure.--
(1) Establishment of commission.--
(A) In general.--The Speaker of the House of
Representatives, the President pro tempore of
the Senate, and the Secretary of Education
shall establish an independent commission,
comprised of key stakeholders, to develop
voluntary guidelines for accessible
postsecondary electronic instructional
materials and related technologies in order--
(i) to ensure students with
disabilities are afforded the same
educational benefits provided to
nondisabled students through the use of
electronic instructional materials and
related technologies;
(ii) to inform better the selection
and use of such materials and
technologies at institutions of higher
education; and
(iii) to encourage entities that
produce such materials and technologies
to make accessible versions more
readily available in the market.
In fulfilling this duty, the commission shall
review applicable national and international
information technology accessibility standards,
which it will compile and annotate as an
additional information resource for
institutions of higher education and companies
that service the higher education market.
(B) Membership.--
(i) Stakeholder groups.--The
commission shall be composed of
representatives from the following
categories:
(I) Disability.--Communities
of persons with disabilities
for whom the accessibility of
postsecondary electronic
instructional materials and
related technologies is a
significant factor in ensuring
equal participation in higher
education, and nonprofit
organizations that provide
accessible electronic materials
to these communities.
(II) Higher education.--
Higher education leadership,
which includes: university
presidents, provosts, deans,
vice presidents, deans of
libraries, chief information
officers, and other senior
institutional executives.
(III) Industry.--Relevant
industry representatives,
meaning--
(aa) developers of
postsecondary
electronic
instructional
materials; and
(bb) manufacturers of
related technologies.
(ii) Appointment of members.--The
commission members shall be appointed
as follows:
(I) Six members, 2 from each
category described in clause
(i), shall be appointed by the
Speaker of the House of
Representatives, 3 of whom
shall be appointed on the
recommendation of the majority
leader of the House of
Representatives and 3 of whom
shall be appointed on the
recommendation of the minority
leader of the House of
Representatives, with the
Speaker ensuring that 1
developer of postsecondary
electronic instructional
materials and 1 manufacturer of
related technologies are
appointed. The Speaker shall
also appoint 2 additional
members, 1 student with a
disability and 1 faculty member
from an institution of higher
education.
(II) Six members, 2 from each
category described in clause
(i), shall be appointed by the
President pro tempore of the
Senate, 3 of whom shall be
appointed on the recommendation
of the majority leader of the
Senate and 3 of whom shall be
appointed on the recommendation
of the minority leader of the
Senate, with the President pro
tempore ensuring that 1
developer of postsecondary
electronic instructional
materials and 1 manufacturer of
related technologies are
appointed. The President pro
tempore shall also appoint 2
additional members, 1 student
with a disability and 1 faculty
member from an institution of
higher education.
(III) Three members, each of
whom must possess extensive,
demonstrated technical
expertise in the development
and implementation of
accessible postsecondary
electronic instructional
materials, shall be appointed
by the Secretary of Education.
One of these members shall
represent postsecondary
students with disabilities, 1
shall represent higher
education leadership, and 1
shall represent developers of
postsecondary electronic
instructional materials.
(iii) Eligibility to serve on the
commission.--Federal employees are
ineligible for appointment to the
commission. An appointee to a volunteer
or advisory position with a Federal
agency or related advisory body may be
appointed to the commission so long as
his or her primary employment is with a
non-Federal entity and he or she is not
otherwise engaged in financially
compensated work on behalf of the
Federal Government, exclusive of any
standard expense reimbursement or
grant-funded activities.
(2) Authority and administration.--
(A) Authority.--The commission's execution of
its duties shall be independent of the
Secretary of Education, the Attorney General,
and the head of any other agency or department
of the Federal Government with regulatory or
standard setting authority in the areas
addressed by the commission.
(B) Administration.--
(i) Staffing.--There shall be no
permanent staffing for the commission.
(ii) Leadership.--Commission members
shall elect a chairperson from among
the 19 appointees to the commission.
(iii) Administrative support.--The
Commission shall be provided
administrative support, as needed, by
the Secretary of Education through the
Office of Postsecondary Education of
the Department of Education.
(C) Termination.--The Commission shall
terminate on the day after the date on which
the Commission issues the voluntary guidelines
and annotated list of information technology
standards described in subsection (b), or two
years from the date of enactment of the PROSPER
Act, whichever comes first.
(b) Duties of the commission.--
(1) Produce voluntary guidelines.--Not later than 18
months after the date of enactment of the PROSPER Act,
subject to a 6-month extension that it may exercise at
its discretion, the commission established in
subsection (a) shall--
(A) develop and issue voluntary guidelines
for accessible postsecondary electronic
instructional materials and related
technologies; and
(B) in developing the voluntary guidelines,
the commission shall--
(i) establish a technical panel
pursuant to paragraph (4) to support
the commission in developing the
voluntary guidelines;
(ii) develop criteria for determining
which materials and technologies
constitute ``postsecondary electronic
instructional materials'' and ``related
technologies'' as defined in
subparagraphs (D) and (E) of subsection
(f);
(iii) identify existing national and
international accessibility standards
that are relevant to student use of
postsecondary electronic instructional
materials and related technologies at
institutions of higher education;
(iv) identify and address any unique
pedagogical and accessibility
requirements of postsecondary
electronic instructional materials and
related technologies that are not
addressed, or not adequately addressed,
by the identified, relevant existing
accessibility standards;
(v) identify those aspects of
accessibility, and types of
postsecondary instructional materials
and related technologies, for which the
commission cannot produce guidelines or
which cannot be addressed by existing
accessibility standards due to--
(I) inherent limitations of
commercially available
technologies; or
(II) the challenges posed by
a specific category of
disability that covers a wide
spectrum of impairments and
capabilities which makes it
difficult to assess the
benefits from particular
guidelines on a categorical
basis;
(vi) ensure that the voluntary
guidelines are consistent with the
requirements of section 504 of the
Rehabilitation Act of 1973 (29 U.S.C.
794) and titles II and III of the
Americans with Disabilities Act (42
U.S.C. 12131 et seq.; 42 U.S.C. 12181
et seq.);
(vii) ensure that the voluntary
guidelines are consistent, to the
extent feasible and appropriate, with
the technical and functional
performance criteria included in the
national and international
accessibility standards identified by
the commission as relevant to student
use of postsecondary electronic
instructional materials and related
technologies;
(viii) allow for the use of an
alternative design or technology that
results in substantially equivalent or
greater accessibility and usability by
individuals with disabilities than
would be provided by compliance with
the voluntary guidelines; and
(ix) provide that where electronic
instructional materials or related
technologies that comply fully with the
voluntary guidelines are not
commercially available, or where such
compliance is not technically feasible,
the institution may select the product
that best meets the voluntary
guidelines consistent with the
institution's business and pedagogical
needs.
(2) Produce annotated list of information technology
standards.--Not later than 18 months after the date of
the enactment of the PROSPER Act, subject to a 6-month
extension that it may exercise at its discretion, the
commission established in subsection (a) shall, with
the assistance of the technical panel established under
paragraph (4), develop and issue an annotated list of
information technology standards.
(3) Supermajority approval.--Issuance of the
voluntary guidelines and annotated list of information
technology standards shall require approval of at least
75 percent (at least 15) of the 19 members of the
commission.
(4) Establishment of technical panel.--Not later than
1 month after the Commission's first meeting, it shall
appoint and convene a panel of 12 technical experts,
each of whom shall have extensive, demonstrated
technical experience in developing, researching, or
implementing accessible postsecondary electronic
instructional materials or related technologies. The
commission has discretion to determine a process for
nominating, vetting, and confirming a panel of experts
that fairly represents the stakeholder communities on
the commission. The technical panel shall include a
representative from the United States Access Board.
(c) Periodic review and revision of voluntary guidelines.--
Not later than 5 years after issuance of the voluntary
guidelines and annotated list of information technology
standards described in paragraphs (1) and (2) of section (b),
and every 5 years thereafter, the Secretary of Education shall
publish a notice in the Federal Register requesting public
comment about whether there is a need to reconstitute the
commission to update the voluntary guidelines and annotated
list of information technology standards to reflect
technological advances, changes in postsecondary electronic
instructional materials and related technologies, or updated
national and international accessibility standards. The
Secretary shall submit a report to Congress summarizing the
public comments and presenting the Secretary's decision on
whether to reconstitute the commission based on those comments.
If the Secretary decides to reconstitute the commission, the
Secretary may implement that decision 30 days after the date on
which the report was submitted to Congress. That process shall
begin with the Secretary requesting the appointment of
commission members as detailed in subsection (a)(1)(B)(ii). If
the Secretary reconstitutes the Commission, the Commission
shall terminate on the day after the date on which the
Commission issues updated voluntary guidelines and annotated
list of information technology standards, or two years from the
date on which the Secretary reconstitutes the Commission,
whichever comes first.
(d) Safe harbor protections.--The following defenses from
liability may be asserted with respect to claims regarding the
use of postsecondary instructional materials and related
technologies arising under section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794) and titles II and III of the
Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et
seq. and 12181 et seq.), subject to the judicial review
afforded under those Acts and without limiting any other
defenses provided under those Acts:
(1) Safe harbor for conforming postsecondary
electronic instructional materials and related
technologies.--An institution of higher education that
requires, provides, or both recommends and provides,
postsecondary electronic instructional materials or
related technologies that conform to the voluntary
guidelines shall be deemed in compliance with, and
qualify for a safe harbor from liability in relation
to, its obligations under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and titles
II and III of the Americans with Disabilities Act (42
U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.) with
respect to its selection of such materials or
technologies.
(2) Limited safe harbor for nonconforming
postsecondary electronic instructional materials or
related technologies.--An institution of higher
education that requires, provides, or both recommends
and provides, postsecondary electronic instructional
materials or related technologies that do not fully
conform with the voluntary guidelines, but which
institution otherwise complies with all requirements
set forth in subparagraphs (A), (B), and (C), will
qualify for a limited safe harbor from monetary damages
under section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) and titles II and III of the Americans with
Disabilities Act (42 U.S.C. 12131 et seq.; 42 U.S.C.
12181 et seq.), with available remedies under section
505 of the Rehabilitation Act of 1973 (29 U.S.C. 794a),
section 103 of the Americans with Disabilities Act of
1990 (42 U.S.C. 12133), and section 308 of such Act (42
U.S.C. 12188) limited to declaratory and injunctive
relief, and for a prevailing party other than the
United States, a reasonable attorney's fee, if the
institution--
(A) documented its efforts to incorporate and
use the voluntary guidelines in its policies
and practices regarding its selection or
procurement of postsecondary electronic
instructional materials and related
technologies. These efforts may include
establishment of a written policy regarding the
institution's use of the voluntary guidelines,
identifying the official(s) authorized to
approve the selection of nonconforming
postsecondary electronic instructional
materials or related technologies, and
procedures used by the official(s) when making
such authorizations;
(B) documented instances where nonconforming
postsecondary electronic instructional
materials or related technologies are selected
or procured, including an explanation of--
(i) the process utilized for
identifying accessible options in the
marketplace;
(ii) the options considered, if any
are available;
(iii) the choice the institution
ultimately made and why;
(iv) what auxiliary aid or service,
reasonable modification, or other
method the institution will utilize to
ensure that affected students within
categories of disability are afforded
the rights to which they are entitled
under section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794) and titles
II and III of the Americans with
Disabilities Act (42 U.S.C. 12131 et
seq.; 42 U.S.C. 12181 et seq.),
including an equally effective
opportunity to receive the same
educational benefit as afforded to
nondisabled students; and
(v) where a student or students with
disabilities are affected by
nonconforming instructional materials
or related technologies, what auxiliary
aid or service, reasonable
modification, or other method the
institution is using to ensure the
student or students are afforded the
rights described in clause (iv); and
(C) posted a link to an accessible copy of
the voluntary guidelines and annotated list of
information technology standards on a publicly
available page of its website.
(e) Construction.--
(1) Nonconforming postsecondary electronic
instructional materials or related technologies.--
Nothing in this section shall be construed to require
an institution of higher education to require, provide,
or both recommend and provide, postsecondary electronic
instructional materials or related technologies that
conform to the voluntary guidelines. However, an
institution that selects or uses nonconforming
postsecondary electronic instructional materials or
related technologies must otherwise comply with
existing obligations under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and titles
II and III of the Americans with Disabilities Act (42
U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.) to
provide access to the educational benefit afforded by
such materials and technologies through provision of
appropriate and reasonable modification, accommodation,
and auxiliary aids or services.
(2) Relationship to existing laws and regulations.--
With respect to the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.) and the Rehabilitation
Act of 1973 (29 U.S.C. 701 et seq.), except as provided
in subsection (d), nothing in this section may be
construed--
(A) to authorize or require conduct
prohibited under the Americans with
Disabilities Act of 1990 and the Rehabilitation
Act of 1973, including the regulations issued
pursuant to those laws;
(B) to expand, limit, or alter the remedies
or defenses under the Americans with
Disabilities Act of 1990 and the Rehabilitation
Act of 1973;
(C) to supersede, restrict, or limit the
application of the Americans with Disabilities
Act of 1990 and the Rehabilitation Act of 1973;
or
(D) to limit the authority of Federal
agencies to issue regulations pursuant to the
Americans with Disabilities Act of 1990 and the
Rehabilitation Act of 1973.
(3) Voluntary nature of the products of the
commission.--
(A) Voluntary guidelines.--It is the intent
of the Congress that use of the voluntary
guidelines developed pursuant to this section
is and should remain voluntary. The voluntary
guidelines shall not confer any rights or
impose any obligations on commission
participants, institutions of higher education,
or other persons, except for the legal
protections set forth in subsection (d). Thus,
no department or agency of the Federal
Government may incorporate the voluntary
guidelines, whether produced as a discrete
document or electronic resource, into
regulations promulgated under the
Rehabilitation Act, the Americans with
Disabilities Act, or any other Federal law or
instrument. This restriction applies only to
the voluntary guidelines as a discrete document
or resource; it imposes no limitation on
Federal use of standards or resources to which
the voluntary guidelines may refer.
(B) Annotated list.--It is the intent of
Congress that use of the annotated list of
information technology standards developed
pursuant to this section is and should remain
voluntary. The Annotated List shall not confer
any rights or impose any obligations on
Commission participants, institutions of higher
education, or other persons. Thus, no
department or agency of the Federal Government
may incorporate the Annotated List, whether
produced as a discrete document or electronic
resource into regulations promulgated under the
Rehabilitation Act, the Americans with
Disabilities Act, or any other Federal law or
instrument. This provision applies only to the
Annotated List as a discrete document or
resource; it imposes no limitation on Federal
use of standards or resources to which the
Annotated List may refer.
(f) Definitions.--In this section, the following definitions
apply:
(1) Annotated list of information technology
standards.--The term ``annotated list of information
technology standards'' means a list of existing
national and international accessibility standards
relevant to student use of postsecondary electronic
instructional materials and related technologies, and
to other types of information technology common to
institutions of higher education (such as institutional
websites and class registration systems), annotated by
the commission established pursuant to subsection (a)
to provide information about the applicability of such
standards in higher education settings. The annotated
list of information technology standards is intended to
serve solely as a reference tool to inform any
consideration of the relevance of such standards in
higher education contexts.
(2) Disability.--The term ``disability'' has the
meaning given such term in section 3 of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12102).
(3) Nonconforming postsecondary electronic
instructional materials or related technologies.--The
term ``nonconforming materials or related
technologies'' means postsecondary electronic
instructional materials or related technologies that do
not conform to the voluntary guidelines to be developed
pursuant to this subpart.
(4) Postsecondary electronic instructional
materials.--The term ``postsecondary electronic
instructional materials'' means digital curricular
content that is required, provided, or both recommended
and provided by an institution of higher education for
use in a postsecondary instructional program.
(5) Related technologies.--The term ``related
technologies'' refers to any software, applications,
learning management or content management systems, and
hardware that an institution of higher education
requires, provides, or both recommends and provides for
student access to and use of postsecondary electronic
instructional materials in a postsecondary
instructional program.
(6) Technical panel.--The term ``technical panel''
means a group of experts with extensive, demonstrated
technical experience in the development and
implementation of accessibility features for
postsecondary electronic instructional materials and
related technologies, established by the Commission
pursuant to subsection (b)(4), which will assist the
commission in the development of the voluntary
guidelines and annotated list of information technology
standards authorized under this subpart.
(7) Voluntary guidelines.--The term ``voluntary
guidelines'' means a set of technical and functional
performance criteria to be developed by the commission
established pursuant to subsection (a) that provide
specific guidance regarding both the accessibility and
pedagogical functionality of postsecondary electronic
instructional materials and related technologies not
addressed, or not adequately addressed, by existing
accessibility standards.
SEC. [769.] 736. AUTHORIZATION OF APPROPRIATIONS AND RESERVATION.
(a) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this subpart [such sums as may be
necessary for fiscal year 2009] $11,800,000 for fiscal year
2019 and each of the five succeeding fiscal years.
[(b) Reservation of Funds.--For any fiscal year for which
appropriations are made for this subpart, the Secretary shall
reserve funds to enter into a cooperative agreement to
establish the coordinating center under section 777(b), in an
amount that is--
[(1) not less than $240,000 for any year in which the
amount appropriated to carry out this subpart is
$8,000,000 or less; or
[(2) equal to 3 percent of the amount appropriated to
carry out this subpart for any year in which such
amount appropriated is greater than $8,000,000.]
(b) Reservation of Funds.--For any fiscal year for which
appropriations are made for this subpart, the Secretary--
(1) shall reserve funds to enter into a cooperative
agreement to establish the coordinating center under
section 734, in an amount that is equal to--
(A) not less than $240,000 for any year in
which the amount appropriated to carry out this
subpart is $8,000,000 or less; or
(B) equal to 3 percent of the amount
appropriated to carry out this subpart for any
year in which such amount appropriated is
greater than $8,000,000; and
(2) may reserve funds to award the grant, contract,
or cooperative agreement described in section 742.
[Subpart 3--Commission on Accessible Materials; Programs to Support
Improved Access to Materials
[SEC. 771. DEFINITION OF STUDENT WITH A PRINT DISABILITY.
[In this subpart, the term ``student with a print
disability'' means a student with a disability who experiences
barriers to accessing instructional material in nonspecialized
formats, including an individual described insection
121(d)(2)of title 17, United States Code.
[SEC. 772. ESTABLISHMENT OF ADVISORY COMMISSION ON ACCESSIBLE
INSTRUCTIONAL MATERIALS IN POSTSECONDARY EDUCATION
FOR STUDENTS WITH DISABILITIES.
[(a) Establishment.--
[(1) In general.--The Secretary shall establish a
commission to be known as the Advisory Commission on
Accessible Instructional Materials in Postsecondary
Education for Students with Disabilities (in this
section referred to as the ``Commission'').
[(2) Membership.--
[(A) Total number of members.--The Commission
shall include not more than 19 members, who
shall be appointed by the Secretary in
accordance with subparagraphs (B) and (C).
[(B) Members of the commission.--The
Commission members shall include one
representative from each of the following
categories:
[(i) The Office of Postsecondary
Education of the Department.
[(ii) The Office of Special Education
and Rehabilitative Services of the
Department.
[(iii) The Office for Civil Rights of
the Department.
[(iv) The Library of Congress
National Digital Information and
Infrastructure Preservation Program
Copyright Working Group.
[(v) The Association on Higher
Education and Disability.
[(vi) The Association of American
Publishers.
[(vii) The Association of American
University Presses.
[(viii) The National Council on
Disability.
[(ix) Recording for the Blind and
Dyslexic.
[(x) National organizations
representing individuals with visual
impairments.
[(xi) National organizations
representing individuals with learning
disabilities.
[(C) Additional members of the commission.--
The Commission members shall include two
representatives from each of the following
categories:
[(i) Staff from institutions of
higher education with demonstrated
experience teaching or supporting
students with print disabilities,
including representatives from both
two-year and four-year institutions of
higher education of different sizes.
[(ii) Producers of accessible
materials, publishing software, and
supporting technologies in specialized
formats, such as Braille, audio or
synthesized speech, and digital media.
[(iii) Individuals with visual
impairments, including not less than
one currently enrolled postsecondary
student.
[(iv) Individuals with dyslexia or
other learning disabilities related to
reading, including not less than one
currently enrolled postsecondary
student.
[(D) Timing.--The Secretary shall appoint the
members of the Commission not later than 60
days after the Commission is established under
paragraph (1).
[(3) Chairperson and vice chairperson.--The
Commission shall select a chairperson and vice
chairperson from among the members of the Commission.
[(4) Meetings.--
[(A) In general.--The Commission shall meet
at the call of the Chairperson.
[(B) First meeting.--Not later than 60 days
after the appointment of the members of the
Commission under paragraph (2)(D), the
Commission shall hold the Commission's first
meeting.
[(5) Quorum.--A majority of the members of the
Commission shall constitute a quorum, but a lesser
number of members may hold hearings.
[(b) Duties of the Commission.--
[(1) Study.--
[(A) In general.--The Commission shall
conduct a comprehensive study to--
[(i) assess the barriers and systemic
issues that may affect, and technical
solutions available that may improve,
the timely delivery and quality of
accessible instructional materials for
postsecondary students with print
disabilities, as well as the effective
use of such materials by faculty and
staff; and
[(ii) make recommendations related to
the development of a comprehensive
approach to improve the opportunities
for postsecondary students with print
disabilities to access instructional
materials in specialized formats in a
timeframe comparable to the
availability of instructional materials
for postsecondary nondisabled students.
[(B) Existing information.--To the extent
practicable, in carrying out the study under
this paragraph, the Commission shall identify
and use existing research, recommendations, and
information.
[(C) Recommendations.--
[(i) In general.--The Commission
shall develop recommendations--
[(I) to inform Federal
regulations and legislation;
[(II) to support the model
demonstration programs
authorized under section 773;
[(III) to identify best
practices in systems for
collecting, maintaining,
processing, and disseminating
materials in specialized
formats to students with print
disabilities at costs
comparable to instructional
materials for postsecondary
nondisabled students;
[(IV) to improve the
effective use of such materials
by faculty and staff, while
complying with applicable
copyright law; and
[(V) to modify the
definitions of instructional
materials, authorized entities,
and eligible students, as such
terms are used in applicable
Federal law, for the purpose of
improving services to students
with disabilities.
[(ii) Considerations.--In developing
the recommendations under clause (i),
the Commission shall consider--
[(I) how students with print
disabilities may obtain
instructional materials in
accessible formats--
[(aa) within a
timeframe comparable to
the availability of
instructional materials
for nondisabled
students; and
[(bb) to the maximum
extent practicable, at
costs comparable to the
costs of such materials
for nondisabled
students;
[(II) the feasibility and
technical parameters of
establishing standardized
electronic file formats, such
as the National Instructional
Materials Accessibility
Standard as defined in section
674(e)(3) of the Individuals
with Disabilities Education
Act, to be provided by
publishers of instructional
materials to producers of
materials in specialized
formats, institutions of higher
education, and eligible
students;
[(III) the feasibility of
establishing a national
clearinghouse, repository, or
file-sharing network for
electronic files in specialized
formats and files used in
producing instructional
materials in specialized
formats, and a list of possible
entities qualified to
administer such clearinghouse,
repository, or network;
[(IV) the feasibility of
establishing market-based
solutions involving
collaborations among publishers
of instructional materials,
producers of materials in
specialized formats, and
institutions of higher
education;
[(V) solutions utilizing
universal design; and
[(VI) solutions for low-
incidence, high-cost requests
for instructional materials in
specialized formats.
[(2) Report.--Not later than one year after the
Commission's first meeting, the Commission shall submit
a report to the Secretary and the authorizing
committees detailing the findings and recommendations
of the study conducted under paragraph (1).
[(3) Dissemination of information.--In carrying out
the study under paragraph (1), the Commission shall
disseminate information concerning the issues that are
the subject of the study through--
[(A) the National Technical Assistance Center
established under subpart 4; and
[(B) other means, as determined by the
Commission.
[(c) Termination of the Commission.--The Commission shall
terminate on the date that is 90 days after the date on which
the Commission submits the report under subsection (b)(2) to
the Secretary and the authorizing committees.
[SEC. 773. MODEL DEMONSTRATION PROGRAMS TO SUPPORT IMPROVED ACCESS TO
POSTSECONDARY INSTRUCTIONAL MATERIALS FOR STUDENTS
WITH PRINT DISABILITIES.
[(a) Purpose.--It is the purpose of this section to support
model demonstration programs for the purpose of encouraging the
development of systems to improve the quality of postsecondary
instructional materials in specialized formats and such
materials' timely delivery to postsecondary students with print
disabilities, including systems to improve efficiency and
reduce duplicative efforts across multiple institutions of
higher education.
[(b) Definition of Eligible Partnership.--In this section,
the term ``eligible partnership'' means a partnership that--
[(1) shall include--
[(A) an institution of higher education with
demonstrated expertise in meeting the needs of
students with print disabilities, including the
retention of such students in, and such
students' completion of, postsecondary
education; and
[(B) a public or private entity, other than
an institution of higher education, with--
[(i) demonstrated expertise in
developing accessible instructional
materials in specialized formats for
postsecondary students with print
disabilities; and
[(ii) the technical development
expertise necessary for the efficient
dissemination of such materials,
including procedures to protect against
copyright infringement with respect to
the creation, use, and distribution of
instructional materials in specialized
formats; and
[(2) may include representatives of the publishing
industry.
[(c) Program Authorized.--From amounts appropriated under
section 775, the Secretary shall award grants or contracts, on
a competitive basis, to not less than one eligible partnership
to enable the eligible partnership to support the activities
described in subsection (f) and, as applicable, subsection (g).
[(d) Application.--An eligible partnership that desires a
grant or contract under this section shall submit an
application at such time, in such manner, and in such format as
the Secretary may prescribe. The application shall include
information on how the eligible partnership will implement
activities under subsection (f) and, as applicable, subsection
(g).
[(e) Priority.--In awarding grants or contracts under this
section, the Secretary shall give priority to any applications
that include the development and implementation of the
procedures and approaches described in paragraphs (2) and (3)
of subsection (g).
[(f) Required Activities.--An eligible partnership that
receives a grant or contract under this section shall use the
grant or contract funds to carry out the following:
[(1) Supporting the development and implementation of
the following:
[(A) Processes and systems to help identify,
and verify eligibility of, postsecondary
students with print disabilities in need of
instructional materials in specialized formats.
[(B) Procedures and systems to facilitate and
simplify request methods for accessible
instructional materials in specialized formats
from eligible students described in
subparagraph (A), which may include a single
point-of-entry system.
[(C) Procedures and systems to coordinate
among institutions of higher education,
publishers of instructional materials, and
entities that produce materials in specialized
formats, to efficiently facilitate--
[(i) requests for such materials;
[(ii) the responses to such requests;
and
[(iii) the delivery of such
materials.
[(D) Delivery systems that will ensure the
timely provision of instructional materials in
specialized formats to eligible students, which
may include electronic file distribution.
[(E) Systems to reduce duplicative
conversions and improve sharing of the same
instructional materials in specialized formats
for multiple eligible students at multiple
institutions of higher education.
[(F) Procedures to protect against copyright
infringement with respect to the development,
use, and distribution of instructional
materials in specialized formats while
maintaining accessibility for eligible
students, which may include digital
technologies such as watermarking,
fingerprinting, and other emerging approaches.
[(G) Awareness, outreach, and training
activities for faculty, staff, and students
related to the acquisition and dissemination of
instructional materials in specialized formats
and instructional materials utilizing universal
design.
[(2) Providing recommendations on how effective
procedures and systems described in paragraph (1) may
be disseminated and implemented on a national basis.
[(g) Authorized Approaches.--An eligible partnership that
receives a grant or contract under this section may use the
grant or contract funds to support the development and
implementation of the following:
[(1) Approaches for the provision of instructional
materials in specialized formats limited to
instructional materials used in smaller categories of
postsecondary courses, such as introductory, first-,
and second-year courses.
[(2) Approaches supporting a unified search for
instructional materials in specialized formats across
multiple databases or lists of available materials.
[(3) Market-based approaches for making instructional
materials in specialized formats directly available to
eligible students at prices comparable to standard
instructional materials.
[(h) Report.--Not later than three years after the date of
the first grant or contract awarded under this section, the
Secretary shall submit to the authorizing committees a report
that includes--
[(1) the number of grants and contracts and the
amount of funds distributed under this section;
[(2) a summary of the purposes for which the grants
and contracts were provided and an evaluation of the
progress made under such grants and contracts;
[(3) a summary of the activities implemented under
subsection (f) and, as applicable, subsection (g),
including data on the number of postsecondary students
with print disabilities served and the number of
instructional material requests executed and delivered
in specialized formats; and
[(4) an evaluation of the effectiveness of programs
funded under this section.
[(i) Model Expansion.--The Secretary may, on the basis of the
reports under subsection (h) and section 772(b)(2) and any
evaluations of the projects funded under this section, expand
the program under this section to additional grant or contract
recipients that use other programmatic approaches and serve
different geographic regions, if the Secretary finds that the
models used under this section--
[(1) are effective in improving the timely delivery
and quality of materials in specialized formats; and
[(2) provide adequate protections against copyright
infringement.
[SEC. 774. RULE OF CONSTRUCTION.
[Nothing in this subpart shall be construed to limit or
preempt any State law requiring the production or distribution
of postsecondary instructional materials in accessible formats
to students with disabilities.
[SEC. 775. AUTHORIZATION OF APPROPRIATIONS.
[(a) In General.--There are authorized to be appropriated to
carry out this subpart such sums as may be necessary for fiscal
year 2009 and each of the five succeeding fiscal years.
[(b) Priority.--For the first fiscal year for which funds are
made available under this section, the Secretary shall give
priority to allocating funding for the purposes of section
772.]
Subpart [4] 2--National Technical Assistance Center[; Coordinating
Center]
SEC. [776.] 741. PURPOSE.
It is the purpose of this subpart to provide technical
assistance and information on best and promising practices to
students with disabilities, the families of students with
disabilities, and entities awarded [grants, contracts, or
cooperative agreements under subpart 1, 2, or 3] grants or a
cooperative agreement under subpart 1 to improve the
postsecondary recruitment, transition, retention, and
completion rates of students with disabilities.
SEC. [777.] 742. NATIONAL TECHNICAL ASSISTANCE CENTER[; COORDINATING
CENTER].
(a) National Center.--
(1) In general.--From amounts [appropriated under
section 778] reserved under section 736(b)(2), the
Secretary shall award a grant to, or enter into a
contract or cooperative agreement with, an eligible
entity to provide for the establishment and support of
a National Center for Information and Technical Support
for Postsecondary Students with Disabilities (in this
subsection referred to as the ``National Center''). The
National Center shall carry out the duties set forth in
paragraph (4).
(2) Administration.--The program under this section
shall be administered by the office in the Department
that administers other postsecondary education
programs.
(3) Eligible entity.--In this subpart, the term
``eligible entity'' means an institution of higher
education, a nonprofit organization, or partnership of
two or more such institutions or organizations, with
demonstrated expertise in--
(A) supporting students with disabilities in
postsecondary education;
(B) technical knowledge necessary for the
dissemination of information in accessible
formats;
(C) working with diverse types of
institutions of higher education, including
community colleges; and
[(D) the subjects supported by the grants,
contracts, or cooperative agreements authorized
in subparts 1, 2, and 3.]
(D) the subject supported by the grants or
cooperative agreement authorized in subpart 1.
(4) Duties.--The duties of the National Center shall
include the following:
(A) Assistance to students and families.--The
National Center shall provide information and
technical assistance to students with
disabilities and the families of students with
disabilities to support students across the
broad spectrum of disabilities, including--
(i) information to assist individuals
with disabilities who are prospective
students of an institution of higher
education in planning for postsecondary
education while the students are in
secondary school;
(ii) information and technical
assistance provided to individualized
education program teams (as defined in
section 614(d)(1) of the Individuals
with Disabilities Education Act) for
secondary school students with
disabilities, and to early outreach and
student services programs, including
programs authorized under [subparts 2,
4, and 5] subparts 2 and 5 of part A of
title IV, to support students across a
broad spectrum of disabilities with the
successful transition to postsecondary
education;
(iii) research-based supports,
services, and accommodations which are
available in postsecondary settings,
including services provided by other
agencies such as vocational
rehabilitation;
(iv) information on student mentoring
and networking opportunities for
students with disabilities; and
(v) effective recruitment and
transition programs at postsecondary
educational institutions.
(B) Assistance to institutions of higher
education.--The National Center shall provide
information and technical assistance to
faculty, staff, and administrators of
institutions of higher education to improve the
services provided to, the accommodations for,
the retention rates of, and the completion
rates of, students with disabilities in higher
education settings, which may include--
(i) collection and dissemination of
best and promising practices and
materials for accommodating and
supporting students with disabilities,
including practices and materials
supported by the [grants, contracts, or
cooperative agreements authorized under
subparts 1, 2, and 3] grants and
cooperative agreement authorized under
subpart 1;
(ii) development and provision of
training modules for higher education
faculty on exemplary practices for
accommodating and supporting
postsecondary students with
disabilities across a range of academic
fields, which may include universal
design for learning and practices
supported by the [grants, contracts, or
cooperative agreements authorized under
subparts 1, 2, and 3] grants and
cooperative agreement authorized under
subpart 1; and
(iii) development of technology-based
tutorials for higher education faculty
and staff, including new faculty and
graduate students, on best and
promising practices related to support
and retention of students with
disabilities in postsecondary
education.
(C) Information collection and
dissemination.--The National Center shall be
responsible for building, maintaining, and
updating a database of disability support
services information with respect to
institutions of higher education, or for
expanding and updating an existing database of
disabilities support services information with
respect to institutions of higher education.
Such database shall be available to the general
public through a website built to high
technical standards of accessibility
practicable for the broad spectrum of
individuals with disabilities. Such database
and website shall include available information
on--
(i) disability documentation
requirements;
(ii) support services available;
(iii) links to financial aid;
(iv) accommodations policies;
(v) accessible instructional
materials;
(vi) other topics relevant to
students with disabilities; and
(vii) the information in the report
described in subparagraph (E).
(D) Disability support services.--The
National Center shall work with organizations
and individuals with proven expertise related
to disability support services for
postsecondary students with disabilities to
evaluate, improve, and disseminate information
related to the delivery of high quality
disability support services at institutions of
higher education.
(E) Review and report.--Not later than three
years after the establishment of the National
Center, and every two years thereafter, the
National Center shall prepare and disseminate a
report to the Secretary and the authorizing
committees analyzing the condition of
postsecondary success for students with
disabilities. Such report shall include--
(i) a review of the activities and
the effectiveness of the programs
authorized under this part;
(ii) annual enrollment and graduation
rates of students with disabilities in
institutions of higher education from
publicly reported data;
(iii) recommendations for effective
postsecondary supports and services for
students with disabilities, and how
such supports and services may be
widely implemented at institutions of
higher education;
(iv) recommendations on reducing
barriers to full participation for
students with disabilities in higher
education; and
(v) a description of strategies with
a demonstrated record of effectiveness
in improving the success of such
students in postsecondary education.
(F) Staffing of the center.--In hiring
employees of the National Center, the National
Center shall consider the expertise and
experience of prospective employees in
providing training and technical assistance to
practitioners.
(b) Coordinating Center.--
(1) Definition of eligible entity.--In this
subsection, the term ``eligible entity'' means an
entity, or a partnership of entities, that has
demonstrated expertise in the fields of--
(A) higher education;
(B) the education of students with
intellectual disabilities;
(C) the development of comprehensive
transition and postsecondary programs for
students with intellectual disabilities; and
(D) evaluation and technical assistance.
(2) In general.--From amounts appropriated under
section 778, the Secretary shall enter into a
cooperative agreement, on a competitive basis, with an
eligible entity for the purpose of establishing a
coordinating center for institutions of higher
education that offer inclusive comprehensive transition
and postsecondary programs for students with
intellectual disabilities, including institutions
participating in grants authorized under subpart 2, to
provide--
(A) recommendations related to the
development of standards for such programs;
(B) technical assistance for such programs;
and
(C) evaluations for such programs.
(3) Administration.--The program under this
subsection shall be administered by the office in the
Department that administers other postsecondary
education programs.
(4) Duration.--The Secretary shall enter into a
cooperative agreement under this subsection for a
period of five years.
(5) Requirements of cooperative agreement.--The
eligible entity entering into a cooperative agreement
under this subsection shall establish and maintain a
coordinating center that shall--
(A) serve as the technical assistance entity
for all comprehensive transition and
postsecondary programs for students with
intellectual disabilities;
(B) provide technical assistance regarding
the development, evaluation, and continuous
improvement of such programs;
(C) develop an evaluation protocol for such
programs that includes qualitative and
quantitative methodologies for measuring
student outcomes and program strengths in the
areas of academic enrichment, socialization,
independent living, and competitive or
supported employment;
(D) assist recipients of grants under subpart
2 in efforts to award a meaningful credential
to students with intellectual disabilities upon
the completion of such programs, which
credential shall take into consideration unique
State factors;
(E) develop recommendations for the necessary
components of such programs, such as--
(i) academic, vocational, social, and
independent living skills;
(ii) evaluation of student progress;
(iii) program administration and
evaluation;
(iv) student eligibility; and
(v) issues regarding the equivalency
of a student's participation in such
programs to semester, trimester,
quarter, credit, or clock hours at an
institution of higher education, as the
case may be;
(F) analyze possible funding streams for such
programs and provide recommendations regarding
the funding streams;
(G) develop model memoranda of agreement for
use between or among institutions of higher
education and State and local agencies
providing funding for such programs;
(H) develop mechanisms for regular
communication, outreach and dissemination of
information about comprehensive transition and
postsecondary programs for students with
intellectual disabilities under subpart 2
between or among such programs and to families
and prospective students;
(I) host a meeting of all recipients of
grants under subpart 2 not less often than once
each year; and
(J) convene a workgroup to develop and
recommend model criteria, standards, and
components of such programs as described in
subparagraph (E), that are appropriate for the
development of accreditation standards, which
workgroup shall include--
(i) an expert in higher education;
(ii) an expert in special education;
(iii) a disability organization that
represents students with intellectual
disabilities;
(iv) a representative from the
National Advisory Committee on
Institutional Quality and Integrity;
and
(v) a representative of a regional or
national accreditation agency or
association.
(6) Report.--Not later than five years after the date
of the establishment of the coordinating center under
this subsection, the coordinating center shall report
to the Secretary, the authorizing committees, and the
National Advisory Committee on Institutional Quality
and Integrity on the recommendations of the workgroup
described in paragraph (5)(J).
[SEC. 778. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
subpart such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years.]
[PART E--COLLEGE ACCESS CHALLENGE GRANT PROGRAM
[SEC. 781. COLLEGE ACCESS CHALLENGE GRANT PROGRAM.
[(a) Authorization and Appropriation.--There are authorized
to be appropriated, and there are appropriated, to carry out
this section $150,000,000 for each of the fiscal years 2010
through 2014. The authority to award grants under this section
shall expire at the end of fiscal year 2014. In addition to the
amount authorized and appropriated under the preceding
sentence, there are authorized to be appropriated to carry out
this section such sums as may be necessary for fiscal year 2009
and each of the five succeeding fiscal years.
[(b) Program Authorized.--
[(1) Grants authorized.--From amounts appropriated
under subsection (a), the Secretary shall, subject to
the availability of appropriations, 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 subsection (f). The
non-Federal share may be in cash or in-kind,
and may be provided from State resources,
contributions 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
payments.--
[(A) In general.--The Secretary shall
determine a grantee to be temporarily
ineligible to receive a grant payment 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 information in such annual report,
that the grantee is not effectively
meeting the conditions described under
subsection (g) and the goals of the
application under subsection (d).
[(B) Reinstatement.--If the Secretary
determines that a grantee is ineligible under
subparagraph (A), the Secretary may enter into
an agreement with the grantee setting forth the
terms and conditions under which the grantee
may regain eligibility to receive payments
under this section.
[(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 Services 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 Services 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 1.0 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 designated 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
paragraph (1) shall include the following:
[(A) A description of the grantee's capacity
to administer 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 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 described in section
435(p)), or those nonprofit organizations that have agreements
with the Secretary under section 428(b), 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 subsection (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 education.
[(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 Education 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 institutions
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 Academic
Competitiveness Grants or
National SMART Grants under
section 401A, and other
financial assistance that is
dependent upon a student's
coursework;
[(ii) applying to institutions of
higher education;
[(iii) applying for Federal student
financial assistance and other State,
local, and private student financial
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 subparagraphs (A) through (F) of
subsection (f)(1) that are funded under the
payment available to all qualifying students
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 student 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 additional 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 Services 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 subsection (e), the holder
shall clearly and prominently indicate 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 students' parents of the
availability of Federal, State, local,
institutional, and other grants and
loans for postsecondary 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
``philanthropic 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 institution 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
consortium (as defined in paragraph (2)) to
carry out this section; and
[(E) the primary purpose of which is to
provide financial aid and support services to
students from underrepresented populations to
increase the number of such students who enter
and remain in college.
[(2) Eligible consortium.--The term ``eligible
consortium'' 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
consortium;
[(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 partners,
including other non-profit
organizations, government entities
(including local municipalities, school
districts, cities, and counties),
institutions of higher education, and
other public or private programs that
provide 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 students of their potential
eligibility for Federal financial aid
(which may include assisting students
and families with filling out FAFSA
forms), as well as other financial aid
and other support available from the
eligible consortium;
[(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
consortium that carry out this
section; and
[(II) provide the communities
impacted by the activities of
the consortium with a general
knowledge about the efforts of
the consortium.
[(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).]
[TITLE VIII--ADDITIONAL PROGRAMS
[PART A--PROJECT GRAD
[SEC. 801. PROJECT GRAD.
[(a) Purposes.--The purposes of this section are--
[(1) to provide support and assistance to programs
implementing integrated education reform services in
order to improve secondary school graduation,
postsecondary program attendance, and postsecondary
completion rates for low-income students; and
[(2) to promote the establishment of new programs to
implement such integrated education reform services.
[(b) Definitions.--In this section:
[(1) Low-income student.--The term ``low-income
student'' means a student who is determined by a local
educational agency to be from a low-income family using
the measures described in section 1113(a)(5) of the
Elementary and Secondary Education Act of 1965.
[(2) Feeder pattern.--The term ``feeder pattern''
means a secondary school and the elementary schools and
middle schools that channel students into that
secondary school.
[(c) Contract Authorized.--From the amount appropriated to
carry out this section, the Secretary is authorized to award a
five-year contract to Project GRAD USA (referred to in this
section as the ``contractor''), a nonprofit education
organization that has as its primary purpose the improvement of
secondary school graduation and postsecondary attendance and
completion rates for low-income students. Such contract shall
be used to carry out the requirements of subsection (d) and to
implement and sustain integrated education reform services
through subcontractor activities described in subsection (e)(3)
at existing Project GRAD program sites and to promote the
expansion to new sites.
[(d) Requirements of Contract.--The Secretary shall enter
into an agreement with the contractor that requires that the
contractor shall--
[(1) enter into subcontracts with nonprofit
educational organizations that serve a substantial
number or percentage of low-income students (referred
to in this subsection as ``subcontractors''), under
which the subcontractors agree to implement the Project
GRAD programs described in subsection (e) and provide
matching funds for such programs;
[(2) directly carry out--
[(A) activities to implement and sustain the
literacy, mathematics, classroom management,
social service, and postsecondary access
programs further described in subsection
(e)(3);
[(B) activities to build the organizational
and management capacity of the subcontractors
to effectively implement and sustain the
programs;
[(C) activities for the purpose of improving
and expanding the programs, including
activities--
[(i) to further articulate a program
for one or more grade levels and across
grade levels;
[(ii) to tailor a program for a
particular target audience; and
[(iii) to provide tighter integration
across programs;
[(D) activities for the purpose of
implementing new Project GRAD program sites;
[(E) activities for the purpose of promoting
greater public awareness of integrated
education reform services to improve secondary
school graduation and postsecondary attendance
rates for low-income students; and
[(F) other activities directly related to
improving secondary school graduation and
postsecondary attendance and completion rates
for low-income students; and
[(3) use contract funds available under this section
to pay--
[(A) the amount determined under subsection
(f); and
[(B) costs associated with carrying out the
activities and providing the services, as
provided in paragraph (2) of this subsection.
[(e) Supported Programs.--
[(1) Designation.--The subcontractor programs
referred to in this subsection shall be known as
Project GRAD programs.
[(2) Feeder patterns.--Each subcontractor shall
implement a Project GRAD program and shall, with the
agreement of the contractor--
[(A) identify or establish not less than one
feeder pattern of public schools; and
[(B) provide the integrated educational
reform services described in paragraph (3) at
each identified feeder pattern.
[(3) Integrated education reform services.--The
services provided through a Project GRAD program may
include--
[(A) research-based programs in reading,
mathematics, and classroom management;
[(B) campus-based social services programs,
including a systematic approach to increase
family and community involvement in the schools
served by the Project GRAD program;
[(C) a postsecondary access program that
includes--
[(i) providing postsecondary
scholarships for students who meet
established criteria;
[(ii) proven approaches for
increasing student and family
postsecondary awareness; and
[(iii) assistance for students in
applying for higher education financial
aid; and
[(D) such other services identified by the
contractor as necessary to increase secondary
school graduation and postsecondary attendance
and completion rates.
[(f) Use of Funds.--Of the funds made available to carry out
this section, not more than five percent of such funds, or
$4,000,000, whichever is less, shall be used by the contractor
to pay for administration of the contract.
[(g) Contribution and Matching Requirement.--
[(1) In general.--The contractor shall provide to
each subcontractor an average of $200 for each student
served by the subcontractor in the Project GRAD
program, adjusted to take into consideration--
[(A) the resources or funds available in the
area where the subcontractor will implement the
Project GRAD program; and
[(B) the need for the Project GRAD program in
such area to improve student outcomes,
including reading and mathematics achievement,
secondary school graduation, and postsecondary
attendance and completion rates.
[(2) Matching requirement.--Each subcontractor shall
provide funds for the Project GRAD program in an amount
that is equal to the amount received by the
subcontractor from the contractor. Such matching funds
may be provided in cash or in kind, fairly evaluated.
[(3) Waiver authority.--The contractor may waive, in
whole or in part, the requirement of paragraph (2) for
a subcontractor, if the subcontractor--
[(A) demonstrates that the subcontractor
would not otherwise be able to participate in
the program; and
[(B) enters into an agreement with the
contractor with respect to the amount to which
the waiver will apply.
[(h) Evaluation.--
[(1) Evaluation by the secretary.--The Secretary
shall select an independent entity to evaluate, every
three years, the performance of students who
participate in a Project GRAD program under this
section. The evaluation shall--
[(A) be conducted using a rigorous research
design for determining the effectiveness of the
Project GRAD programs funded under this
section; and
[(B) compare reading and mathematics
achievement, secondary school graduation, and
postsecondary attendance and completion rates
of students who participate in a Project GRAD
program funded under this section with those
indicators for students of similar backgrounds
who do not participate in such program.
[(2) Evaluation by contractor and subcontractors.--
The contractor shall require each subcontractor to
prepare an in-depth report of the results and the use
of funds of each Project GRAD program funded under this
section that includes--
[(A) data on the reading and mathematics
achievement of students involved in the Project
GRAD program;
[(B) data on secondary school graduation and
postsecondary attendance and completion rates;
and
[(C) such financial reporting as required by
the Secretary to review the effectiveness and
efficiency of the program.
[(3) Availability of evaluations.--Copies of any
evaluation or report prepared under this subsection
shall be made available to--
[(A) the Secretary; and
[(B) the authorizing committees.
[(i) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART B--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM
[SEC. 802. MATHEMATICS AND SCIENCE SCHOLARS PROGRAM.
[(a) Program Authorized.--From the amounts appropriated under
subsection (f), the Secretary is authorized to award grants to
States, on a competitive basis, to enable the States to
encourage students to pursue a rigorous course of study,
beginning in secondary school and continuing through the
students' postsecondary education, in science, technology,
engineering, mathematics, or a health-related field.
[(b) Applications.--
[(1) In general.--A State that desires a grant under
this section shall submit an application to the
Secretary at such time, in such manner, and containing
such information as the Secretary may require. A State
may submit an application to receive a grant under
subsection (c) or (d), or both.
[(2) Contents of application.--Each application shall
include a description of--
[(A) the program or programs for which the
State is applying;
[(B) if applicable, the priority set by the
Governor pursuant to subsection (c)(4) or
(d)(3); and
[(C) how the State will meet the requirements
of subsection (e).
[(c) Mathematics and Science Scholars Program.--
[(1) Grant for scholarships.--The Secretary shall
award grants under this subsection to provide
scholarship support to eligible students.
[(2) Eligible students.--A student is eligible for a
scholarship under this subsection if the student--
[(A) meets the requirements of section
484(a);
[(B) is a full-time student in the student's
first year of undergraduate study; and
[(C) has completed a rigorous secondary
school curriculum in mathematics and science.
[(3) Rigorous curriculum.--Each participating State
shall determine the requirements for a rigorous
secondary school curriculum in mathematics and science
described in paragraph (2)(C).
[(4) Priority for scholarships.--The Governor of a
State may set a priority for awarding scholarships
under this subsection for particular eligible students,
such as students attending schools in high-need local
educational agencies (as defined in section 200),
students who are from groups underrepresented in the
fields of mathematics, science, and engineering,
students served by local educational agencies that do
not meet or exceed State standards in mathematics and
science, or other high-need students.
[(5) Amount and duration of scholarship.--The
Secretary shall award a grant under this subsection to
provide scholarships--
[(A) in an amount that does not exceed $5,000
per student; and
[(B) for not more than one year of
undergraduate study.
[(d) STEM or Health-Related Scholars Program.--
[(1) Grant for scholarships.--The Secretary shall
award grants under this subsection to provide
scholarship support to eligible students.
[(2) Eligible students.--A student is eligible for
scholarship under this subsection if the student--
[(A) meets the requirements of section
484(a);
[(B) is a full-time student who has completed
at least the first year of undergraduate study;
[(C) is enrolled in a program of
undergraduate instruction leading to a
bachelor's degree with a major in science,
technology, engineering, mathematics, or a
health-related field; and
[(D) has obtained a cumulative grade point
average of at least a 3.0 (or the equivalent as
determined under regulations prescribed by the
Secretary) at the end of the most recently
completed term.
[(3) Priority for scholarships.--The Governor of a
State may set a priority for awarding scholarships
under this subsection for students agreeing to work in
areas of science, technology, engineering, mathematics,
or health-related fields.
[(4) Amount and duration of scholarship.--The
Secretary shall award a grant under this subsection to
provide scholarships--
[(A) in an amount that does not exceed $5,000
per student for an academic year; and
[(B) in an aggregate amount that does not
exceed $20,000 per student.
[(e) Matching Requirement.--In order to receive a grant under
this section, a State shall provide matching funds for the
scholarships awarded under this section in an amount equal to
50 percent of the Federal funds received.
[(f) Authorization.--There are authorized to be appropriated
to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.
[(g) Definition.--The term ``Governor'' means the chief
executive officer of a State.
[PART C--BUSINESS WORKFORCE PARTNERSHIPS FOR JOB SKILL TRAINING IN
HIGH-GROWTH OCCUPATIONS OR INDUSTRIES
[SEC. 803. BUSINESS WORKFORCE PARTNERSHIPS FOR JOB SKILL TRAINING IN
HIGH-GROWTH OCCUPATIONS OR INDUSTRIES.
[(a) Purpose.--The purpose of this section is to provide
grants to institutions of higher education partnering with
employers to--
[(1) provide relevant job skill training in high-
growth and high-wage industries or occupations to
nontraditional students; and
[(2) strengthen ties between degree credit offerings
at institutions of higher education and business and
industry workforce needs.
[(b) Authorization.--
[(1) In general.--From the amounts appropriated under
subsection (k), the Secretary shall award grants, on a
competitive basis, to eligible partnerships for the
purpose provided in subsection (a).
[(2) Duration.--The Secretary shall award grants
under this section for a period of not less than 36
months and not more than 60 months.
[(3) Supplement, not supplant.--Funds made available
under this section shall be used to supplement, and not
supplant, other Federal, State, and local funds
available to the eligible partnership for carrying out
the activities described in subsection (c).
[(c) Use of Funds.--In consultation with all of the members
of an eligible partnership, grant funds provided under this
section may be used to--
[(1) expand or create for-credit academic programs or
programs of training that provide relevant job skill
training for high-growth and high-wage occupations or
industries, including offerings connected to registered
apprenticeship programs and entrepreneurial training
opportunities;
[(2) in consultation with faculty in the appropriate
departments of an institution of higher education,
adapt college offerings to the schedules and needs of
working students, such as the creation of evening,
weekend, modular, compressed, or distance learning
formats;
[(3) purchase equipment that will facilitate the
development of academic programs or programs of
training that provide training for high-growth and
high-wage occupations or industries;
[(4) strengthen outreach efforts that enable
students, including students with limited English
proficiency, to attend institutions of higher education
with academic programs or programs of training focused
on high-growth and high-wage occupations or industries;
[(5) expand worksite learning and training
opportunities, including registered apprenticeships as
appropriate; and
[(6) support other activities the Secretary
determines to be consistent with the purpose of this
section.
[(d) Application.--
[(1) In general.--Each eligible partnership that
desires a grant under this section shall submit an
application to the Secretary at such time, in such
manner, and accompanied by such additional information
as the Secretary may require.
[(2) Contents.--Each application submitted under
paragraph (1) shall include a description of--
[(A) how the eligible partnership, through
the institution of higher education, will
provide relevant job skill training for
students to enter high-growth and high-wage
occupations or industries; and
[(B) how the eligible partnership has
consulted with employers and, where applicable,
labor organizations to identify local high-
growth and high-wage occupations or industries.
[(e) Award Basis.--In awarding grants under this section, the
Secretary shall--
[(1) give priority to applications focused on serving
nontraditional students;
[(2) ensure an equitable distribution of grant funds
under this section among urban and rural areas of the
United States; and
[(3) take into consideration the capability of an
institution of higher education that is participating
in an eligible partnership to--
[(A) offer one- or two-year high-quality
programs of instruction and job skill training
for students entering a high-growth and high-
wage occupation or industry;
[(B) involve the local business community,
and to place graduates in employment in high-
growth and high-wage occupations or industries
in the community; and
[(C) serve adult workers or displaced
workers.
[(f) Administrative Costs.--A grantee under this section may
use not more than five percent of the grant amount to pay
administrative costs associated with activities funded by the
grant.
[(g) Technical Assistance.--The Secretary shall provide
technical assistance to grantees under this section throughout
the grant period.
[(h) Evaluation.--The Secretary shall conduct an evaluation
of the effectiveness of the program under this section based on
performance standards developed in consultation with the
Department of Labor, and shall disseminate to the public the
findings of such evaluation and information related to
promising practices developed under this section.
[(i) Report to Congress.--Not later than 36 months after the
first grant is awarded under this section, the Comptroller
General shall report to the authorizing committees
recommendations--
[(1) for changes to this Act and related Acts, such
as the Carl D. Perkins Career and Technical Education
Act of 2006 and the Workforce Investment Act of 1998
(including titles I and II), to help create and sustain
business and industry workforce partnerships at
institutions of higher education; and
[(2) for other changes to this Act and related Acts
to otherwise strengthen the links between business and
industry workforce needs, workforce development
programs, and other degree credit offerings at
institutions of higher education.
[(j) Definitions.--In this section:
[(1) Eligible partnership.--
[(A) In general.--The term ``eligible
partnership'' means a partnership that
includes--
[(i) one or more institutions of
higher education, one of which serves
as the fiscal agent and grant recipient
for the eligible partnership;
[(ii) except as provided in
subparagraph (B), an employer, group of
employers, local board (as such term is
defined in section 3 of the Workforce
Innovation and Opportunity Act), or
workforce intermediary, or any
combination thereof; and
[(iii) where applicable, one or more
labor organizations that represent
workers locally in the businesses or
industries that are the focus of the
partnership, including as a result of
such an organization's representation
of employees at a worksite at which the
partnership proposes to conduct
activities under this section.
[(B) State and local boards.--Notwithstanding
subparagraph (A), if an institution of higher
education that is participating in an eligible
partnership under this section is located in a
State that does not operate local boards, an
eligible partnership may include a State board
(as such term is defined in section 3 of the
Workforce Innovation and Opportunity Act).
[(C) Rule of construction.--Nothing in this
subsection shall be construed to prohibit an
eligible partnership that is in existence on
the date of enactment of the Higher Education
Opportunity Act from applying for a grant under
this section.
[(2) Nontraditional student.--The term
``nontraditional student'' means a student--
[(A) who is an independent student, as
defined in section 480(d);
[(B) who attends an institution of higher
education--
[(i) on less than a full-time basis;
[(ii) via evening, weekend, modular,
or compressed courses; or
[(iii) via distance education
methods; and
[(C) who--
[(i) enrolled for the first time in
an institution of higher education
three or more years after completing
high school; or
[(ii) works full-time.
[(k) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART D--CAPACITY FOR NURSING STUDENTS AND FACULTY
[SEC. 804. CAPACITY FOR NURSING STUDENTS AND FACULTY.
[(a) Authorization.--From the amounts appropriated under
subsection (f), the Secretary shall award grants to
institutions of higher education that offer--
[(1) an accredited registered nursing program at the
baccalaureate or associate degree level to enable such
program to expand the faculty and facilities of such
program to accommodate additional students in such
program; or
[(2) an accredited graduate-level nursing program to
accommodate advanced practice degrees for registered
nurses or to accommodate students enrolled in such
program to become teachers of nursing students.
[(b) Determination of Number of Students and Application.--
Each institution of higher education that offers a program
described in subsection (a) that desires to receive a grant
under this section shall--
[(1) determine, for the four academic years preceding
the academic year for which the determination is made,
the average number of matriculated nursing program
students, in each of the institution's accredited
associate, baccalaureate, or advanced nursing degree
programs at such institution for such academic years;
[(2) submit an application to the Secretary at such
time, in such manner, and accompanied by such
information as the Secretary may require, including the
average number in each of the institution's accredited
nursing programs determined under paragraph (1); and
[(3) with respect to the partnerships described in
subsection (c)(2)(B), provide assurances that--
[(A) the individuals enrolled in the program
will--
[(i) be registered nurses in pursuit
of a master's or doctoral degree in
nursing; and
[(ii) have a contractual obligation
with the hospital or health facility
that is in partnership with the
institution of higher education;
[(B) the hospital or health facility of
employment will be the clinical site for the
accredited school of nursing program, if the
program requires a clinical site;
[(C) individuals enrolled in the program
will--
[(i) maintain their employment on at
least a part-time basis with the
hospital or health facility that
allowed them to participate in the
program; and
[(ii) receive an income from the
hospital or health facility, as at
least a part-time employee, and release
times or flexible schedules, to
accommodate their program requirements,
as necessary; and
[(D) upon completion of the program,
recipients of scholarships described in
subsection (c)(2)(B)(ii)(III) will be required
to teach for two years in an accredited school
of nursing for each year of support the
individual received under this section.
[(c) Grant Amount; Award Basis.--
[(1) Grant amount.--For each academic year after
academic year 2009-2010, the Secretary is authorized to
provide to each institution of higher education awarded
a grant under this section an amount that is equal to
$3,000 multiplied by the number by which--
[(A) the number of matriculated nursing
program students at such institution for such
academic year, exceeds
[(B) the average number determined with
respect to such institution under subsection
(b)(1).
[(2) Distribution of grants among different degree
programs.--
[(A) In general.--Subject to subparagraph
(D), from the funds available to award grants
under this section for each fiscal year, the
Secretary shall--
[(i) use 20 percent of such funds to
award grants under this section to
institutions of higher education for
the purpose of accommodating advanced
practice degrees or students in
accredited graduate-level nursing
programs;
[(ii) use 40 percent of such funds to
award grants under this section to
institutions of higher education for
the purpose of expanding accredited
registered nurse programs at the
baccalaureate degree level; and
[(iii) use 40 percent of such funds
to award grants under this section to
institutions of higher education for
the purpose of expanding accredited
registered nurse programs at the
associate degree level.
[(B) Optional uses of funds.--Grants awarded
under this section may be used to support
partnerships with hospitals or health
facilities to--
[(i) improve the alignment between
nursing education and the emerging
challenges of health care delivery by--
[(I) the purchase of distance
learning technologies and
expanding methods of delivery
of instruction to include
alternatives to onsite
learning; and
[(II) the collection,
analysis, and dissemination of
data on educational outcomes
and best practices identified
through the activities
described in this section; and
[(ii) ensure that students can earn a
salary while obtaining an advanced
degree in nursing with the goal of
becoming nurse faculty by--
[(I) funding release time for
qualified nurses enrolled in
the graduate nursing program;
[(II) providing for faculty
salaries; or
[(III) providing scholarships
to qualified nurses in pursuit
of an advanced degree with the
goal of becoming faculty
members in an accredited
nursing program.
[(C) Considerations in making awards.--In
awarding grants under this section, the
Secretary shall consider the following:
[(i) Geographic distribution.--
Providing an equitable geographic
distribution of such grants.
[(ii) Urban and rural areas.--
Distributing such grants to urban and
rural areas.
[(iii) Range and type of
institution.--Ensuring that the
activities to be assisted are developed
for a range of types and sizes of
institutions of higher education,
including institutions providing
alternative methods of delivery of
instruction in addition to on-site
learning.
[(D) Distribution of excess funds.--If, for a
fiscal year, funds described in clause (i),
(ii), or (iii) of subparagraph (A) remain
available after the Secretary awards grants
under this section to all applicants for the
particular category of accredited nursing
programs described in such clause, the
Secretary shall use equal amounts of the
remaining funds to award grants under this
section to applicants that applied under the
other categories of nursing programs.
[(E) Limitation.--Of the amount appropriated
to carry out this section, the Secretary may
award not more than ten percent of such amount
for the optional purposes under subparagraph
(B).
[(d) Definitions.--For purposes of this section:
[(1) Health facility.--The term ``health facility''
means an Indian health service center, a Native
Hawaiian health center, a hospital, a federally
qualified health center, a rural health clinic, a
nursing home, a home health agency, a hospice program,
a public health clinic, a State or local department of
public health, a skilled nursing facility, or an
ambulatory surgical center.
[(2) Public health service act.--The terms
``accredited'' and ``school of nursing'' have the
meanings given those terms in section 801 of the Public
Health Service Act (42 U.S.C. 296).
[(e) Prohibition.--
[(1) In general.--Funds provided under this section
may not be used for the construction of new facilities.
[(2) Rule of construction.--Nothing in paragraph (1)
shall be construed to prohibit funds provided under
this section from being used for the repair or
renovation of facilities.
[(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART E--AMERICAN HISTORY FOR FREEDOM
[SEC. 805. AMERICAN HISTORY FOR FREEDOM.
[(a) Grants Authorized.--From the amounts appropriated under
subsection (f), the Secretary is authorized to award three-year
grants, on a competitive basis, to eligible institutions to
establish or strengthen postsecondary academic programs or
centers that promote and impart knowledge of--
[(1) traditional American history;
[(2) the history and nature of, and threats to, free
institutions; or
[(3) the history and achievements of Western
civilization.
[(b) Definitions.--In this section:
[(1) Eligible institution.--The term ``eligible
institution'' means an institution of higher education
as defined in section 101.
[(2) Free institution.--The term ``free institution''
means an institution that emerged out of Western
civilization, such as democracy, constitutional
government, individual rights, market economics,
religious freedom and religious tolerance, and freedom
of thought and inquiry.
[(3) Traditional american history.--The term
``traditional American history'' means--
[(A) the significant constitutional,
political, intellectual, economic, and foreign
policy trends and issues that have shaped the
course of American history; and
[(B) the key episodes, turning points, and
leading figures involved in the constitutional,
political, intellectual, diplomatic, and
economic history of the United States.
[(c) Application.--
[(1) In general.--Each eligible institution that
desires a grant under this section shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may reasonably require.
[(2) Contents.--Each application submitted under
paragraph (1) shall include a description of--
[(A) how funds made available under this
section will be used for the activities set
forth under subsection (e), including how such
activities will increase knowledge with respect
to traditional American history, free
institutions, or Western civilization;
[(B) how the eligible institution will ensure
that information about the activities funded
under this section is widely disseminated
pursuant to subsection (e)(1)(B);
[(C) any activities to be undertaken pursuant
to subsection (e)(2)(A), including
identification of entities intended to
participate;
[(D) how funds made available under this
section shall be used to supplement and not
supplant non-Federal funds available for the
activities described in subsection (e); and
[(E) such fiscal controls and accounting
procedures as may be necessary to ensure proper
disbursement of and accounting for funding made
available to the eligible institution under
this section.
[(d) Award Basis.--In awarding grants under this section, the
Secretary shall take into consideration the capability of the
eligible institution to--
[(1) increase access to quality programming that
expands knowledge of traditional American history, free
institutions, or Western civilization;
[(2) involve personnel with strong expertise in
traditional American history, free institutions, or
Western civilization; and
[(3) sustain the activities funded under this section
after the grant has expired.
[(e) Use of Funds.--
[(1) Required use of funds.--Funds provided under
this section shall be used to--
[(A) establish or strengthen academic
programs or centers focused on traditional
American history, free institutions, or Western
civilization, which may include--
[(i) design and implementation of
programs of study, courses, lecture
series, seminars, and symposia;
[(ii) development, publication, and
dissemination of instructional
materials;
[(iii) research;
[(iv) support for faculty teaching in
undergraduate and, if applicable,
graduate programs;
[(v) support for graduate and
postgraduate fellowships, if
applicable; or
[(vi) teacher preparation initiatives
that stress content mastery regarding
traditional American history, free
institutions, or Western civilization;
and
[(B) conduct outreach activities to ensure
that information about the activities funded
under this section is widely disseminated--
[(i) to undergraduate students
(including students enrolled in teacher
education programs, if applicable);
[(ii) to graduate students (including
students enrolled in teacher education
programs, if applicable);
[(iii) to faculty;
[(iv) to local educational agencies;
and
[(v) within the local community.
[(2) Allowable uses of funds.--Funds provided under
this section may be used to support--
[(A) collaboration with entities such as--
[(i) local educational agencies, for
the purpose of providing elementary and
secondary school teachers an
opportunity to enhance their knowledge
of traditional American history, free
institutions, or Western civilization;
and
[(ii) nonprofit organizations whose
mission is consistent with the purpose
of this section, such as academic
organizations, museums, and libraries,
for assistance in carrying out
activities described under subsection
(a); and
[(B) other activities that meet the purposes
of this section.
[(f) Authorization of Appropriations.--For the purpose of
carrying out this section, there are authorized to be
appropriated such sums as may be necessary for fiscal year 2009
and each of the five succeeding fiscal years.
[PART F--TEACH FOR AMERICA
[SEC. 806. TEACH FOR AMERICA.
[(a) Definitions.--For purposes of this section:
[(1) Grantee.--The term ``grantee'' means Teach For
America, Inc.
[(3) High-need local educational agency.--The term
``high-need local educational agency'' has the meaning
given such term in section 200.
[(b) Grants Authorized.--From the amounts appropriated under
subsection (f), the Secretary is authorized to award a five-
year grant to Teach For America, Inc., the national teacher
corps of outstanding recent college graduates who commit to
teach for two years in underserved communities in the United
States, to implement and expand its program of recruiting,
selecting, training, and supporting new teachers.
[(c) Requirements.--In carrying out the grant program under
subsection (b), the Secretary shall enter into an agreement
with the grantee under which the grantee agrees to use the
grant funds provided under this section to--
[(1) provide teachers who meet the applicableState
certification and licensure requirements, includingany
requirements for certification obtained through
alternativeroutes to certification, or, with regard to
specialeducation teachers, the qualifications described
in section612(a)(14)(C) of the Individuals with
Disabilities EducationAct, to high-need local
educational agencies in urban and rural communities;
[(2) pay the costs of recruiting, selecting,
training, and supporting new teachers; and
[(3) serve a substantial number and percentage of
underserved students.
[(d) Authorized Activities.--
[(1) In general.--Grant funds provided under this
section shall be used by the grantee to carry out each
of the following activities:
[(A) Recruiting and selecting teachers
through a highly selective national process.
[(B) Providing preservice training to such
teachers through a rigorous summer institute
that includes hands-on teaching experience and
significant exposure to education coursework
and theory.
[(C) Placing such teachers in schools and
positions designated by high-need local
educational agencies as high-need placements
serving underserved students.
[(D) Providing ongoing professional
development activities for such teachers' first
two years in the classroom, including regular
classroom observations and feedback, and
ongoing training and support.
[(2) Limitation.--The grantee shall use all grant
funds received under this section to support activities
related directly to the recruitment, selection,
training, and support of teachers as described in
subsection (b), except that funds may be used for non-
programmatic costs in accordance with subsection
(f)(2).
[(e) Reports and Evaluations.--
[(1) Annual report.--The grantee shall provide to the
Secretary an annual report that includes--
[(A) data on the number and quality of the
teachers provided to local educational agencies
through a grant under this section;
[(B) an externally conducted analysis of the
satisfaction of local educational agencies and
principals with the teachers so provided; and
[(C) comprehensive data on the background of
the teachers chosen, the training such teachers
received, the placement sites of such teachers,
the professional development of such teachers,
and the retention of such teachers.
[(2) Study.--
[(A) In general.--From funds appropriated
under subsection (f), the Secretary shall
provide for a study that examines the
achievement levels of the students taught by
the teachers assisted under this section.
[(B) Student achievement gains compared.--The
study shall compare, within the same schools,
the achievement gains made by students taught
by teachers who are assisted under this section
with the achievement gains made by students
taught by teachers who are not assisted under
this section.
[(C) Requirements.--The Secretary shall
provide for such a study not less than once
every three years, and each such study shall
include multiple placement sites and multiple
schools within placement sites.
[(D) Peer review standards.--Each such study
shall meet the peer review standards of the
education research community. Further, the peer
review standards shall ensure that reviewers
are practicing researchers and have expertise
in assessment systems, accountability,
psychometric measurement and statistics, and
instruction.
[(3) Accounting, financial reporting, and internal
control systems.--
[(A) In general.--The grantee shall contract
with an independent auditor to conduct a
comprehensive review of the grantee's
accounting, financial reporting, and internal
control systems. Such review shall assess
whether that grantee's accounting, financial
reporting, and internal control systems are
designed to--
[(i) provide information that is
complete, accurate, and reliable;
[(ii) reasonably detect and prevent
material misstatements, as well as
fraud, waste, and abuse; and
[(iii) provide information to
demonstrate the grantee's compliance
with related Federal programs, as
applicable.
[(B) Review requirements.--Not later than 90
days after the grantee receives funds to carry
out this section for the first fiscal year in
which funds become available to carry out this
section after the date of enactment of
theHigher Education Opportunity Act, the
independent auditor shall complete the review
required by this paragraph.
[(C) Report.--Not later than 120 days after
the grantee receives funds to carry out this
section for the first fiscal year in which
funds become available to carry out this
section after the date of enactment of
theHigher Education Opportunity Act, the
independent auditor shall submit a report to
the authorizing committees and the Secretary of
the findings of the review required under this
paragraph, including any recommendations of the
independent auditor, as appropriate, with
respect to the grantee's accounting, financial
reporting, and internal control systems.
[(f) Authorization of Appropriations.--
[(1) In general.--The amount authorized to be
appropriated to carry out this section shall not
exceed--
[(A) $20,000,000 for fiscal year 2009;
[(B) $25,000,000 for fiscal year 2010; and
[(C) such sums as may be necessary for each
of the four succeeding fiscal years.
[(2) Limitation.--The grantee shall not use more than
5 percent of Federal funds made available under this
section for non-programmatic costs to carry out this
section.
[PART G--PATSY T. MINK FELLOWSHIP PROGRAM
[SEC. 807. PATSY T. MINK FELLOWSHIP PROGRAM.
[(a) Purpose; Designation.--
[(1) In general.--It is the purpose of this section
to provide, through eligible institutions, a program of
fellowship awards to assist highly qualified minorities
and women to acquire the doctoral degree, or highest
possible degree available, in academic areas in which
such individuals are underrepresented for the purpose
of enabling such individuals to enter the higher
education professoriate.
[(2) Designation.--Each recipient of a fellowship
award from an eligible institution receiving a grant
under this section shall be known as a ``Patsy T. Mink
Graduate Fellow''.
[(b) Eligible Institution.--In this section, the term
``eligible institution'' means an institution of higher
education, or a consortium of such institutions, that offers a
program of postbaccalaureate study leading to a graduate
degree.
[(c) Program Authorized.--
[(1) Grants by secretary.--
[(A) In general.--From the amounts
appropriated under subsection (f), the
Secretary shall award grants to eligible
institutions to enable such institutions to
make fellowship awards to individuals in
accordance with the provisions of this section.
[(B) Priority consideration.--In awarding
grants under this section, the Secretary shall
consider the eligible institution's prior
experience in producing doctoral degree, or
highest possible degree available, holders who
are minorities and women, and shall give
priority consideration in making grants under
this section to those eligible institutions
with a demonstrated record of producing
minorities and women who have earned such
degrees.
[(2) Applications.--
[(A) In general.--An eligible institution
that desires a grant under this section shall
submit an application to the Secretary at such
time, in such manner, and containing such
information as the Secretary may require.
[(B) Applications made on behalf.--The
following entities may submit an application on
behalf of an eligible institution:
[(i) A graduate school or department
of such institution.
[(ii) A graduate school or department
of such institution in collaboration
with an undergraduate college or school
of such institution.
[(iii) An organizational unit within
such institution that offers a program
of postbaccalaureate study leading to a
graduate degree, including an
interdisciplinary or an
interdepartmental program.
[(C) Partnership.--In developing a grant
application and carrying out the grant
activities authorized under this section, an
eligible institution may partner with a
nonprofit organization with a demonstrated
record of helping minorities and women earn
postbaccalaureate degrees.
[(3) Selection of applications.--In awarding grants
under paragraph (1), the Secretary shall--
[(A) take into account--
[(i) the number and distribution of
minority and female faculty nationally;
[(ii) the current and projected need
for highly trained individuals in all
areas of the higher education
professoriate; and
[(iii) the present and projected need
for highly trained individuals in
academic career fields in which
minorities and women are
underrepresented in the higher
education professoriate; and
[(B) consider the need to prepare a large
number of minorities and women generally in
academic career fields of high national
priority, especially in areas in which such
individuals are traditionally underrepresented
in college and university faculty.
[(4) Distribution and amounts of grants.--
[(A) Equitable distribution.--In awarding
grants under this section, the Secretary shall,
to the maximum extent feasible, ensure an
equitable geographic distribution of awards and
an equitable distribution among public and
private eligible institutions that apply for
grants under this section and that demonstrate
an ability to achieve the purpose of this
section.
[(B) Special rule.--To the maximum extent
practicable, the Secretary shall use not less
than 30 percent of the amount appropriated
pursuant to subsection (f) to award grants to
eligible institutions that are eligible for
assistance under title III or title V, or to
consortia of eligible institutions that include
at least one eligible institution that is
eligible for assistance under title III or
title V.
[(C) Allocation.--In awarding grants under
this section, the Secretary shall allocate
appropriate funds to those eligible
institutions whose applications indicate an
ability to significantly increase the numbers
of minorities and women entering the higher
education professoriate and that commit
institutional resources to the attainment of
the purpose of this section.
[(D) Number of fellowship awards.--An
eligible institution that receives a grant
under this section shall make not less than ten
fellowship awards.
[(E) Insufficient funds.--If the amount
appropriated is not sufficient to permit all
grantees under this section to provide the
minimum number of fellowships required by
subparagraph (D), the Secretary may, after
awarding as many grants to support the minimum
number of fellowships as such amount
appropriated permits, award grants that do not
require the grantee to award the minimum number
of fellowships required by such subparagraph.
[(5) Institutional allowance.--
[(A) In general.--
[(i) Number of allowances.--In
awarding grants under this section, the
Secretary shall pay to each eligible
institution awarded a grant, for each
individual awarded a fellowship by such
institution under this section, an
institutional allowance.
[(ii) Amount.--Except as provided in
subparagraph (C), for academic year
2009-2010 and succeeding academic
years, an institutional allowance under
this paragraph shall be in an amount
equal to the amount of institutional
allowance made to an institution of
higher education under section 715 for
such academic year.
[(B) Use of funds.--Institutional allowances
may be expended at the discretion of the
eligible institution and may be used to
provide, except as prohibited under
subparagraph (D), academic support and career
transition services for individuals awarded
fellowships by such institution.
[(C) Reduction.--The institutional allowance
paid under subparagraph (A) shall be reduced by
the amount the eligible institution charges and
collects from a fellowship recipient for
tuition and other expenses as part of the
recipient's instructional program.
[(D) Use for overhead prohibited.--Funds made
available under this section may not be used
for general operational overhead of the
academic department or institution receiving
funds under this section.
[(d) Fellowship Recipients.--
[(1) Authorization.--An eligible institution that
receives a grant under this section shall use the grant
funds to make fellowship awards to minorities and women
who are enrolled at such institution in a doctoral
degree program, or program for the highest possible
degree available, and--
[(A) intend to pursue a career in instruction
at--
[(i) an institution of higher
education (as the term is defined in
section 101);
[(ii) an institution of higher
education (as the term is defined in
section 102(a)(1)); and
[(iii) a proprietary institution of
higher education (as the term is
defined in section 102(b)); and
[(B) sign an agreement with the Secretary
agreeing--
[(i) to begin employment at an
institution described in subparagraph
(A) not later than three years after
receiving the doctoral degree or
highest possible degree available,
which three-year period may be extended
by the Secretary for extraordinary
circumstances; and
[(ii) to be employed by such
institution for one year for each year
of fellowship assistance received under
this section.
[(2) Repayment for failure to comply.--In the event
that any recipient of a fellowship under this section
fails or refuses to comply with the agreement signed
pursuant to paragraph (1)(B), the sum of the amounts of
any fellowship received by such recipient shall, upon a
determination of such a failure or refusal to comply,
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 section.
[(3) Waiver and modification.--
[(A) Regulations.--The Secretary shall
promulgate regulations setting forth criteria
to be considered in granting a waiver for the
service requirement under paragraph (1)(B).
[(B) Content.--The criteria under
subparagraph (A) shall include whether
compliance with the service requirement by the
fellowship recipient would be--
[(i) inequitable and represent an
extraordinary hardship; or
[(ii) deemed impossible because the
individual is permanently and totally
disabled at the time of the waiver
request.
[(4) Amount of fellowship awards.--Fellowship awards
under this section shall consist of a stipend in an
amount equal to the level of support provided to
fellows under the National Science Foundation Graduate
Research Fellowship Program, except that such stipend
shall be adjusted as necessary so as not to exceed the
fellow's tuition and fees or demonstrated need (as
determined by the institution of higher education where
the graduate student is enrolled), whichever is
greater.
[(5) Academic progress required.--An individual
student shall not be eligible to receive a fellowship
award--
[(A) except during periods in which such
student is enrolled, and such student is
maintaining satisfactory academic progress in,
and devoting essentially full time to, study or
research in the pursuit of the degree for which
the fellowship support was awarded; and
[(B) if the student is engaged in gainful
employment, other than part-time employment in
teaching, research, or similar activity
determined by the eligible institution to be
consistent with and supportive of the student's
progress toward the appropriate degree.
[(e) Rule of Construction.--Nothing in this section shall be
construed to require an eligible institution that receives a
grant under this section--
[(1) to grant a preference to or to differentially
treat any applicant for a faculty position as a result
of the institution's participation in the program under
this section; or
[(2) to hire a Patsy T. Mink Fellow who completes
this program and seeks employment at such institution.
[(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART H--IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS
[SEC. 808. IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS.
[(a) In General.--From the amounts appropriated under
subsection (c), the Secretary shall award a grant to one
nonprofit organization described in subsection (b) to enable
the nonprofit organization--
[(1) to make publicly available the year-to-year
postsecondary education enrollment rate trends of
secondary school students, disaggregated by secondary
school, in compliance with section 444 of the General
Education Provisions Act (commonly known as the
``Family Educational Rights and Privacy Act of 1974'');
[(2) to identify not less than 50 urban local
educational agencies and five States with significant
rural populations, each serving a significant
population of low-income students, and to carry out a
comprehensive assessment in the agencies and States of
the factors known to contribute to improved
postsecondary education enrollment rates, which factors
shall include--
[(A) the local educational agency's and
State's leadership strategies and capacities;
[(B) the secondary school curriculum and
class offerings of the local educational agency
and State;
[(C) the professional development used by the
local educational agency and the State to
assist teachers, guidance counselors, and
administrators in supporting the transition of
secondary students to postsecondary education;
[(D) secondary school student attendance and
other factors demonstrated to be associated
with enrollment into postsecondary education;
[(E) the use of data systems by the local
educational agency and the State to measure
postsecondary education enrollment rates and
the incentives in place to motivate the efforts
of faculty and students to improve student and
schoolwide outcomes; and
[(F) strategies to mobilize student leaders
to build a college-bound culture; and
[(3) to provide comprehensive services to improve the
schoolwide postsecondary education enrollment rates of
each of not less than ten local educational agencies
and States, with the federally funded portion of each
project declining by not less than 20 percent each year
beginning in the second year of the comprehensive
services, that--
[(A) participated in the needs assessment
described in paragraph (2); and
[(B) demonstrated a willingness and
commitment to improving the postsecondary
education enrollment rates of the local
educational agency or State, respectively.
[(b) Grant Recipient Criteria.--The recipient of the grant
awarded under subsection (a) shall be a nonprofit organization
with demonstrated expertise--
[(1) in increasing schoolwide postsecondary
enrollment rates in low-income communities nationwide
by providing curriculum, training, and technical
assistance to secondary school staff and student peer
influencers; and
[(2) in a postsecondary education transition data
management system.
[(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART I--EARLY CHILDHOOD EDUCATION PROFESSIONAL DEVELOPMENT AND CAREER
TASK FORCE
[SEC. 811. PURPOSE.
[The purposes of this part are--
[(1) to improve the quality of the early childhood
education workforce by creating a statewide early
childhood education professional development and career
task force for early childhood education program staff,
directors, administrators, and faculty; and
[(2) to create--
[(A) a coherent system of core competencies,
pathways to qualifications, credentials,
degrees, quality assurances, access, and
outreach, for early childhood education program
staff, directors, administrators, and faculty
that is linked to compensation commensurate
with experience and qualifications;
[(B) articulation agreements that enable
early childhood education professionals to
transition easily among degrees; and
[(C) compensation initiatives for individuals
working in an early childhood education program
that reflect the individuals' credentials,
degrees, and experience.
[SEC. 812. DEFINITION OF EARLY CHILDHOOD EDUCATION PROGRAM.
[In this part, the term ``early childhood education
program'' means--
[(1) a Head Start program or an Early Head Start
program carried out under the Head Start Act (42 U.S.C.
9831 et seq.), including a migrant or seasonal Head
Start program or an Indian Head Start program;
[(2) a State licensed or regulated child care
program; or
[(3) a State prekindergarten program or a program
authorized under section 619 or part C of the
Individuals with Disabilities Education Act, that
serves children from birth through age six and that
addresses the children's cognitive (including language,
early literacy, and pre-numeracy), social, emotional,
and physical development.
[SEC. 813. GRANTS AUTHORIZED.
[(a) In General.--From the amounts appropriated under section
818, the Secretary is authorized to award grants to States in
accordance with the provisions of this part to enable such
States--
[(1) to establish a State Task Force described in
section 814; and
[(2) to support activities of the State Task Force
described in section 815.
[(b) Competitive Basis.--Grants under this part shall be
awarded on a competitive basis.
[(c) Equitable Geographic Distribution.--In awarding grants
under this part, the Secretary shall take into consideration
providing an equitable geographic distribution of such grants.
[(d) Duration.--Grants under this part shall be awarded for a
period of five years.
[SEC. 814. STATE TASK FORCE ESTABLISHMENT.
[(a) State Task Force Established.--The Governor of a State
receiving a grant under this part shall establish, or designate
an existing entity to serve as, the State Early Childhood
Education Professional Development and Career Task Force
(hereafter in this part referred to as the ``State Task
Force'').
[(b) Membership.--The State Task Force shall include a
representative of a State agency, an institution of higher
education (including an associate or a baccalaureate degree
granting institution of higher education), an early childhood
education program, a nonprofit early childhood organization, a
statewide early childhood workforce scholarship or supplemental
initiative, the State Head Start collaboration director, and
any other entity or individual the Governor determines
appropriate.
[SEC. 815. STATE TASK FORCE ACTIVITIES.
[(a) Activities.--The State Task Force shall--
[(1) coordinate and communicate regularly with the
State Advisory Council on Early Care and Education
(hereafter in this part referred to as ``State Advisory
Council'') or a similar State entity charged with
creating a comprehensive system of early care and
education in the State, for the purposes of--
[(A) integrating recommendations for early
childhood professional development and career
activities into the plans of the State Advisory
Council; and
[(B) assisting in the implementation of
professional development and career activities
that are consistent with the plans described in
subparagraph (A);
[(2) conduct a review of opportunities for and
barriers to high-quality professional development,
training, and higher education degree programs, in
early childhood development and learning, including a
periodic statewide survey concerning the demographics
of individuals working in early childhood education
programs in the State, which survey shall include
information disaggregated by--
[(A) race, gender, and ethnicity;
[(B) compensation levels;
[(C) type of early childhood education
program setting;
[(D) specialized knowledge of child
development;
[(E) years of experience in an early
childhood education program;
[(F) attainment of--
[(i) academic credit for coursework;
[(ii) an academic degree;
[(iii) a credential;
[(iv) licensure; or
[(v) certification in early childhood
education; and
[(G) specialized knowledge in the education
of children with limited English proficiency
and students with disabilities; and
[(3) develop a plan for a comprehensive statewide
professional development and career system for
individuals working in early childhood education
programs or for early childhood education providers,
which plan may include--
[(A) methods of providing outreach to early
childhood education program staff, directors,
and administrators, including methods for how
outreach is provided to non-English speaking
providers, in order to enable the providers to
be aware of opportunities and resources under
the statewide plan;
[(B) developing a unified data collection and
dissemination system for early childhood
education training, professional development,
and higher education programs;
[(C) increasing the participation of early
childhood educators in high-quality training
and professional development by assisting in
paying the costs of enrollment in and
completion of such training and professional
development courses;
[(D) increasing the participation of early
childhood educators in undergraduate and
graduate education programs leading to degrees
in early childhood education by providing
assistance to pay the costs of enrollment in
and completion of such programs, which
assistance--
[(i) shall only be provided to an
individual who--
[(I) in the case of an
individual pursuing an
undergraduate or graduate
degree, enters into an
agreement under which the
individual agrees to work, for
a reasonable number of years
after receiving such a degree,
in an early childhood education
program that is located in a
low-income area; and
[(II) has a family income
equal to or less than the
annually adjusted national
median family income as
determined by the Bureau of the
Census; and
[(ii) shall be provided in an amount
that does not exceed $17,500;
[(E) supporting professional development
activities and a career lattice for a variety
of early childhood professional roles with
varying professional qualifications and
responsibilities for early childhood education
personnel, including strategies to enhance the
compensation of such personnel;
[(F) supporting articulation agreements
between two- and four-year public and private
institutions of higher education and mechanisms
to transform other training, professional
development, and experience into academic
credit;
[(G) developing mentoring and coaching
programs to support new educators in and
directors of early childhood education
programs;
[(H) providing career development advising
with respect to the field of early childhood
education, including informing an individual
regarding--
[(i) entry into and continuing
education requirements for professional
roles in the field;
[(ii) available financial assistance
for postsecondary education; and
[(iii) professional development and
career advancement in the field;
[(I) enhancing the capacity and quality of
faculty and coursework in postsecondary
programs that lead to an associate,
baccalaureate, or graduate degree in early
childhood education;
[(J) consideration of the availability of on-
line graduate level professional development
offered by institutions of higher education
with experience and demonstrated expertise in
establishing programs in child development, in
order to improve the skills and expertise of
individuals working in early childhood
education programs; and
[(K) developing or enhancing a system of
quality assurance with respect to the early
childhood education professional development
and career system, including standards or
qualifications for individuals and entities who
offer training and professional development in
early childhood education.
[(b) Public Hearings.--The State Task Force shall hold public
hearings and provide an opportunity for public comment on the
activities described in the statewide plan described in
subsection (a)(3).
[(c) Periodic Review.--The State Task Force shall meet
periodically to review implementation of the statewide plan and
to recommend any changes to the statewide plan the State Task
Force determines necessary.
[SEC. 816. STATE APPLICATION AND REPORT.
[(a) In General.--Each State desiring a grant under this part
shall submit an application to the Secretary at such time, in
such manner, and accompanied by such information as the
Secretary may reasonably require. Each such application shall
include a description of--
[(1) the membership of the State Task Force;
[(2) the activities for which the grant assistance
will be used;
[(3) other Federal, State, local, and private
resources that will be available to support the
activities of the State Task Force described in section
815;
[(4) the availability within the State of training,
early childhood educator preparation, professional
development, compensation initiatives, and career
systems, related to early childhood education; and
[(5) the resources available within the State for
such training, educator preparation, professional
development, compensation initiatives, and career
systems.
[(b) Report to the Secretary.--Not later than two years after
receiving a grant under this part, a State shall submit a
report to the Secretary that shall describe--
[(1) other Federal, State, local, and private
resources that will be used in combination with a grant
under this section to develop or expand the State's
early childhood education professional development and
career activities;
[(2) the ways in which the State Advisory Council (or
similar State entity) will coordinate the various State
and local activities that support the early childhood
education professional development and career system;
and
[(3) the ways in which the State Task Force will use
funds provided under this part and carry out the
activities described in section 815.
[SEC. 817. EVALUATIONS.
[(a) State Evaluation.--Each State receiving a grant under
this part shall--
[(1) evaluate the activities that are assisted under
this part in order to determine--
[(A) the effectiveness of the activities in
achieving State goals;
[(B) the impact of a career lattice for
individuals working in early childhood
education programs;
[(C) the impact of the activities on
licensing or regulating requirements for
individuals in the field of early childhood
development;
[(D) the impact of the activities, and the
impact of the statewide plan described in
section 815(a)(3), on the quality of education,
professional development, and training related
to early childhood education programs that are
offered in the State;
[(E) the change in compensation and retention
of individuals working in early childhood
education programs within the State resulting
from the activities; and
[(F) the impact of the activities on the
demographic characteristics of individuals
working in early childhood education programs;
and
[(2) submit a report at the end of the grant period
to the Secretary regarding the evaluation described in
paragraph (1).
[(b) Secretary's Evaluation.--Not later than September 30,
2013, the Secretary, in consultation with the Secretary of
Health and Human Services, shall prepare and submit to the
authorizing committees an evaluation of the State reports
submitted under subsection (a)(2).
[SEC. 818. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
part such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years.
[PART J--IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS
EDUCATION WITH A FOCUS ON ALASKA NATIVE AND NATIVE HAWAIIAN STUDENTS
[SEC. 819. IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS
EDUCATION WITH A FOCUS ON ALASKA NATIVE AND NATIVE
HAWAIIAN STUDENTS.
[(a) Purpose.--The purposes of this section are--
[(1) to develop or expand programs for the
development of professionals in the fields of science,
technology, engineering, and mathematics; and
[(2) to focus resources on meeting the educational
and cultural needs of Alaska Natives and Native
Hawaiians.
[(b) Definitions.--In this section:
[(1) Alaska native.--The term ``Alaska Native'' has
the meaning given such term in section 6306 of the
Elementary and Secondary Education Act of 1965.
[(2) Eligible partnership.--The term ``eligible
partnership'' means a partnership that includes--
[(A) one or more colleges, schools, or
departments of engineering;
[(B) one or more colleges of science or
mathematics;
[(C) one or more institutions of higher
education that offer two-year degrees; and
[(D) one or more private entities that--
[(i) conduct career awareness
activities showcasing local technology
professionals;
[(ii) encourage students to pursue
education in science, technology,
engineering, and mathematics from
elementary school through postsecondary
education, and careers in those fields,
with the assistance of local technology
professionals;
[(iii) develop internships,
apprenticeships, and mentoring programs
in partnership with relevant
industries; and
[(iv) assist with placement of
interns and apprentices.
[(3) Institution of higher education.--The term
``institution of higher education'' has the meaning
given such term in section 101(a).
[(4) Native hawaiian.--The term ``Native Hawaiian''
has the meaning given the term in section 6207 of the
Elementary and Secondary Education Act of 1965.
[(c) Grant Authorized.--From the amounts appropriated to
carry out this section under subsection (i), the Secretary is
authorized to award a grant to an eligible partnership to
enable the eligible partnership to expand programs for the
development of science, technology, engineering, or mathematics
professionals, from elementary school through postsecondary
education, including existing programs for Alaska Native and
Native Hawaiian students.
[(d) Uses of Funds.--Grant funds under this section shall be
used for one or more of the following:
[(1) Development or implementation of cultural,
social, or educational transition programs to assist
students to transition into college life and academics
in order to increase such students' retention rates in
the fields of science, technology, engineering, or
mathematics, with a focus on Alaska Native or Native
Hawaiian students.
[(2) Development or implementation of academic
support or supplemental educational programs to
increase the graduation rates of students in the fields
of science, technology, engineering, or mathematics,
with a focus on Alaska Native and Native Hawaiian
students.
[(3) Development or implementation of internship
programs, carried out in coordination with educational
institutions and private entities, to prepare students
for careers in the fields of science, technology,
engineering, or mathematics, with a focus on programs
that serve Alaska Native or Native Hawaiian students.
[(4) Such other activities as are consistent with the
purpose of this section.
[(e) Application.--Each eligible partnership that desires a
grant under this section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
[(f) Priority.--In awarding grants under this section, the
Secretary shall give priority to an eligible partnership that,
on the day before the date of enactment of theHigher Education
Opportunity Act, provides one or more programs in which 30
percent or more of the program participants are Alaska Native
or Native Hawaiian.
[(g) Period of Grant.--A grant under this section shall be
awarded for a period of five years.
[(h) Evaluation and Report.--Each eligible partnership that
receives a grant under this section shall conduct an evaluation
to determine the effectiveness of the programs funded under the
grant and shall provide a report regarding the evaluation to
the Secretary not later than six months after the end of the
grant period.
[(i) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART K--PILOT PROGRAMS TO INCREASE COLLEGE PERSISTENCE AND SUCCESS
[SEC. 820. PILOT PROGRAMS TO INCREASE COLLEGE PERSISTENCE AND SUCCESS.
[(a) Grants Authorized.--From the amounts appropriated under
subsection (i), the Secretary is authorized to award grants in
accordance with this section, on a competitive basis, to
eligible institutions to enable the institutions to develop
programs to increase the persistence and success of low-income
college students.
[(b) Applications.--
[(1) In general.--An eligible institution seeking a
grant under this section shall submit an application to
the Secretary at such time, in such manner, and
containing such information as the Secretary may
require. An eligible institution may submit an
application to receive a grant under subsection (c) or
(d) or both.
[(2) Evaluation condition.--Each eligible institution
seeking a grant under this section shall agree to
participate in the evaluation described in subsection
(f).
[(3) Priority for replication of evidence-based
policies and practices.--In awarding grants for the
program under subsection (d), the Secretary shall give
priority to applications submitted by eligible
institutions that propose to replicate policies and
practices that have proven effective in increasing
persistence and degree completion by low-income
students or students in need of developmental
education.
[(c) Pilot Program To Increase Persistence and Success in
Community Colleges.--
[(1) Definitions.--In this subsection:
[(A) Eligible institution.--The term
``eligible institution'' means an institution
of higher education, as defined in section 101,
that provides a one- or two-year program of
study leading to a degree or certificate.
[(B) Eligible student.--The term ``eligible
student'' means a student who--
[(i) is eligible to receive
assistance under section 401;
[(ii) is enrolled at least half-time;
[(iii) is not younger than age 19;
[(iv) is the parent of at least one
dependent child, which dependent child
is age 18 or younger;
[(v) has a secondary school diploma
or its recognized equivalent; and
[(vi) does not have a degree or
certificate from an institution of
higher education.
[(2) Uses of funds.--
[(A) Support.--The Secretary shall award
grants under this subsection to eligible
institutions to enable such institutions to
provide additional monetary and nonmonetary
support to eligible students to enable the
eligible students to maintain enrollment and
complete degree or certificate programs.
[(B) Required uses.--Each eligible
institution receiving a grant under this
subsection shall use the grant funds--
[(i) to provide scholarships in
accordance with paragraph (3); and
[(ii) to provide counseling services
in accordance with paragraph (4).
[(C) Allowable uses of funds.--Grant funds
provided under this subsection may be used--
[(i) to conduct outreach to make
students aware of the scholarships and
counseling services available under
this subsection and to encourage the
students to participate in the program
assisted under this subsection; and
[(ii) to provide incentives of $20 or
less to applicants who complete the
process of applying for assistance
under this subsection, as compensation
for the student's time.
[(3) Scholarship requirements.--
[(A) In general.--Each scholarship awarded
under this subsection shall--
[(i) be awarded for one academic year
consisting of two semesters or the
equivalent;
[(ii) require the student to
maintain, during the scholarship
period, at least half-time enrollment
and at least a 2.0 grade point average
or the equivalent;
[(iii) be awarded in the amount of
$1,000 for each of two semesters
(prorated for quarters or other
equivalents), or $2,000 for an academic
year;
[(iv) not exceed the student's cost
of attendance, as defined in section
472; and
[(v) be paid, for each of the two
semesters, in increments of--
[(I) $250 upon enrollment
(prorated for quarters or other
equivalents);
[(II) $250 upon passing
midterm examinations or
comparable assessments
(prorated for quarters or other
equivalents); and
[(III) $500 upon passing
courses (prorated for quarters
or other equivalents).
[(B) Number.--An eligible institution may
award an eligible student not more than two
scholarships under this subsection.
[(4) Counseling services.--
[(A) In general.--Each eligible institution
receiving a grant under this subsection shall
use the grant funds to provide students at the
institution with a counseling staff dedicated
to students participating in the program under
this subsection. Each such counselor shall--
[(i) have a caseload of less than 125
students;
[(ii) use a proactive, team-oriented
approach to counseling;
[(iii) hold a minimum of two meetings
with each student each semester; and
[(iv) provide referrals to and
follow-up with other student services
staff, including financial aid and
career services.
[(B) Counseling services availability.--The
counseling services provided under this
subsection shall be available to participating
students during the daytime and evening hours.
[(d) Student Success Grant Pilot Program.--
[(1) Definitions.--
[(A) Eligible institution.--In this
subsection, the term ``eligible institution''
means an institution of higher education in
which, during the three-year period preceding
the year in which the institution is applying
for a grant under this subsection, an average
of not less than 50 percent of the
institution's entering first-year students are
assessed as needing developmental courses to
bring reading, writing, or mathematics skills
up to college level.
[(B) Eligible student.--In this subsection,
the term ``eligible student'' means a student
who--
[(i) is eligible to receive
assistance under section 401;
[(ii) is a first-year student at the
time of entering the program;
[(iii) is assessed as needing
developmental education to bring
reading, writing, or mathematics skills
up to college level; and
[(iv) is selected by an eligible
institution to participate in the
program.
[(2) Student success grant amount.--The Secretary
shall award grants under this subsection to eligible
institutions in an amount equal to $1,500 multiplied by
the number of students the institution selects to
participate in the program in such year. An institution
shall not select more than 200 students to participate
in the program under this subsection during such year.
[(3) Required uses.--An eligible institution that
receives a grant under this subsection shall use the
grant funds to assign a student success coach to each
first-year student participating in the program to
provide intensive career and academic advising, ongoing
personal help in navigating college services (such as
financial aid and registration), and assistance in
connecting to community resources that can help
students overcome family and personal challenges to
success. Student success coaches--
[(A) shall work with not more than 50 new
students during any academic period;
[(B) may be employees of academic
departments, student services offices,
community-based organizations, or other
entities as determined appropriate by the
institution; and
[(C) shall meet with each eligible student
selected for the program before registration
for courses.
[(4) Allowable uses.--An eligible institution that
receives a grant under this subsection may use the
grant funds to provide services and program innovations
for students participating in the program, including
the following:
[(A) College and career success courses
provided at no charge to participating
students. These courses may cover college
success topics, including how to take notes,
how to study, how to take tests, and how to
budget time, and may also include a substantial
career exploration component. Institutions may
use such courses to help students develop a
college and career success plan, so that by the
end of the first semester the students have a
clear sense of their career goals and what
classes to take to achieve such goals.
[(B) Work-study jobs with private employers
in the students' fields of study.
[(C) Learning communities that ensure that
students participating in the program are
clustered together for at least two courses
beginning in the first semester after enrolling
and have other opportunities to create and
maintain bonds that allow them to provide
academic and social support to each other.
[(D) Curricular redesign, which may include
such innovations as blended or accelerated
remediation classes that help student success
grant recipients to attain college-level
reading, writing, or math skills (or a
combination thereof) more rapidly than
traditional remediation formats allow, and
intensive skills refresher classes, offered
prior to each semester, to help students who
have tested into remedial coursework to reach
entry level assessment scores for the
postsecondary programs they wish to enter.
[(E) Instructional support, such as learning
labs, supplemental instruction, and tutoring.
[(F) Assistance with support services, such
as child care and transportation.
[(5) Required non-federal share.--Each institution
participating in the program under this subsection
shall provide a non-Federal share of 25 percent of the
amount of the grant to carry out the activities of the
program. The non-Federal share under this subsection
may be provided in cash or in kind.
[(e) Period of Grant.--The Secretary may award a grant under
subsection (c) or (d) of this section for a period of five
years.
[(f) Technical Assistance and Evaluation.--
[(1) Contractor.--From the funds appropriated under
this section, the Secretary shall enter into a contract
with one or more private, nonprofit entities to provide
technical assistance to grantees and to conduct the
evaluations required under paragraph (3).
[(2) Evaluations.--The evaluations required under
paragraph (3) shall be conducted by entities that are
capable of designing and carrying out independent
evaluations that identify the impact of the activities
carried out by eligible institutions under this section
on improving persistence and success of student
participants under this section.
[(3) Conduct of evaluations.--The Secretary shall
conduct an evaluation of the impact of the persistence
and success grant programs as follows:
[(A) Program to increase persistence in
community colleges.--The evaluation of the
program under subsection (c) shall be conducted
using a random assignment research design with
the following requirements:
[(i) When students are recruited for
the program, all students will be told
about the program and the evaluation.
[(ii) Baseline data will be collected
from all applicants for assistance
under subsection (c).
[(iii) Students will be assigned
randomly to two groups, which will
consist of--
[(I) a program group that
will receive the scholarship
and the additional counseling
services; and
[(II) a control group that
will receive whatever regular
financial aid and counseling
services are available to all
students at the institution of
higher education.
[(B) Student success grant program.--Eligible
institutions receiving a grant to carry out the
program under subsection (d) shall work with
the evaluator to track persistence and
completion outcomes for students in such
program, specifically the proportion of these
students who take and complete developmental
education courses, the proportion who take and
complete college-level coursework, and the
proportion who complete certificates and
degrees. The data shall be broken down by
gender, race, ethnicity, and age and the
evaluator shall assist institutions in
analyzing these data to compare program
participants to comparable nonparticipants,
using statistical techniques to control for
differences in the groups.
[(g) Report.--The Secretary shall--
[(1) provide a report to the authorizing committees
that includes the evaluation and information on best
practices and lessons learned during the pilot programs
described in this section; and
[(2) disseminate the report to the public by making
the report available on the Department's website.
[(h) Supplement Not Supplant.--Funds made available under
this section shall be used to supplement and not supplant other
Federal, State, and local funds available to the institution to
carrying out the activities described in subsections (c) and
(d).
[(i) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years. The Secretary may use not more than
two percent of the amounts appropriated to provide the
technical assistance and conduct the evaluations required under
subsection (f).
[PART L--STUDENT SAFETY AND CAMPUS EMERGENCY MANAGEMENT
[SEC. 821. STUDENT SAFETY AND CAMPUS EMERGENCY MANAGEMENT.
[(a) Grants Authorized.--
[(1) In general.--From the amounts appropriated under
subsection (f), the Secretary is authorized to award
grants, on a competitive basis, to institutions of
higher education or consortia of institutions of higher
education to enable institutions of higher education or
consortia to pay the Federal share of the cost of
carrying out the authorized activities described in
subsection (c).
[(2) Consultation with the attorney general and the
secretary of homeland security.--Where appropriate, the
Secretary shall award grants under this section in
consultation with the Attorney General and the
Secretary of Homeland Security.
[(3) Duration.--The Secretary shall award each grant
under this section for a period of two years.
[(4) Limitation on institutions and consortia.--An
institution of higher education or consortium shall be
eligible for only one grant under this section.
[(b) Federal Share; Non-Federal Share.--
[(1) In general.--The Federal share of the activities
described in subsection (c) shall be 50 percent.
[(2) Non-federal share.--An institution of higher
education or consortium that receives a grant under
this section shall provide the non-Federal share, which
may be provided from State and local resources
dedicated to emergency preparedness and response.
[(c) Authorized Activities.--Each institution of higher
education or consortium receiving a grant under this section
may use the grant funds to carry out one or more of the
following:
[(1) Developing and implementing a state-of-the-art
emergency communications system for each campus of an
institution of higher education or consortium, in order
to contact students via cellular, text message, or
other state-of-the-art communications methods when a
significant emergency or dangerous situation occurs. An
institution or consortium using grant funds to carry
out this paragraph shall also, in coordination with the
appropriate State and local emergency management
authorities--
[(A) develop procedures that students,
employees, and others on a campus of an
institution of higher education or consortium
will be directed to follow in the event of a
significant emergency or dangerous situation;
and
[(B) develop procedures the institution of
higher education or consortium shall follow to
inform, in a reasonable and timely manner,
students, employees, and others on a campus in
the event of a significant emergency or
dangerous situation, which procedures shall
include the emergency communications system
described in this paragraph.
[(2) Supporting measures to improve safety at the
institution of higher education or consortium, such
as--
[(A) security assessments;
[(B) security training of personnel and
students at the institution of higher education
or consortium;
[(C) where appropriate, coordination of
campus preparedness and response efforts with
local law enforcement, local emergency
management authorities, and other agencies, to
improve coordinated responses in emergencies
among such entities;
[(D) establishing a hotline that allows a
student or staff member at an institution or
consortium to report another student or staff
member at the institution or consortium who the
reporting student or staff member believes may
be a danger to the reported student or staff
member or to others; and
[(E) acquisition and installation of access
control, video surveillance, intrusion
detection, and perimeter security technologies
and systems.
[(3) Coordinating with appropriate local entities for
the provision of mental health services for students
and staff of the institution of higher education or
consortium, including mental health crisis response and
intervention services for students and staff affected
by a campus or community emergency.
[(d) Application.--Each institution of higher education or
consortium desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
[(e) Technical Assistance.--The Secretary shall coordinate
technical assistance provided by State and local emergency
management agencies, the Department of Homeland Security, and
other agencies as appropriate, to institutions of higher
education or consortia that request assistance in developing
and implementing the activities assisted under this section.
[(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this part such sums as may be
necessary for fiscal year 2009 and each of the five succeeding
fiscal years.
[SEC. 822. MODEL EMERGENCY RESPONSE POLICIES, PROCEDURES, AND
PRACTICES.
[The Secretary, in consultation with the Attorney General
and the Secretary of Homeland Security, shall continue to--
[(1) advise institutions of higher education on model
emergency response policies, procedures, and practices;
and
[(2) disseminate information concerning those
policies, procedures, and practices.
[SEC. 823. PREPARATION FOR FUTURE DISASTERS PLAN BY THE SECRETARY.
[The Secretary shall continue to coordinate with the
Secretary of Homeland Security and other appropriate agencies
to develop and maintain procedures to address the preparedness,
response, and recovery needs of institutions of higher
education in the event of a natural or manmade disaster with
respect to which the President has declared a major disaster or
emergency (as such terms are defined in section 824).
[SEC. 824. EDUCATION DISASTER AND EMERGENCY RELIEF LOAN PROGRAM.
[(a) Program Authorized.--The Secretary, in consultation with
the Secretary of Homeland Security, is authorized to establish
an Education Disaster and Emergency Relief Loan Program for
institutions of higher education impacted by a major disaster
or emergency declared by the President.
[(b) Use of Assistance.--The Secretary shall, subject to the
availability of appropriations, provide loans under this
section to institutions of higher education after the
declaration of a major disaster or emergency by the President.
Loan funds provided under this section may be used for
construction, replacement, renovation, and operations costs
resulting from a major disaster or emergency declared by the
President.
[(c) Application Requirements.--To be considered for a loan
under this section, an institution of higher education shall--
[(1) submit a financial statement and other
appropriate data, documentation, or evidence requested
by the Secretary that indicates that the institution
incurred losses resulting from the impact of a major
disaster or emergency declared by the President, and
the monetary amount of such losses;
[(2) demonstrate that the institution had appropriate
insurance policies prior to the major disaster or
emergency and filed claims, as appropriate, related to
the major disaster or emergency; and
[(3) demonstrate that the institution attempted to
minimize the cost of any losses by pursuing collateral
source compensation from the Federal Emergency
Management Agency prior to seeking a loan under this
section, except that an institution of higher education
shall not be required to receive collateral source
compensation from the Federal Emergency Management
Agency prior to being eligible for a loan under this
section.
[(d) Audit.--The Secretary may audit a financial statement
submitted under subsection (c) and an institution of higher
education shall provide any information that the Secretary
determines necessary to conduct such an audit.
[(e) Reduction in Loan Amounts.--To determine the amount of a
loan to make available to an institution of higher education
under this section, the Secretary shall calculate the monetary
amount of losses incurred by such institution as a result of a
major disaster or emergency declared by the President, and
shall reduce such amount by the amount of collateral source
compensation the institution has already received from
insurance, the Federal Emergency Management Agency, and the
Small Business Administration.
[(f) Establishment of Loan Program.--Prior to disbursing any
loans under this section, the Secretary shall prescribe
regulations that establish the Education Disaster and Emergency
Relief Loan Program, including--
[(1) terms for the loan program;
[(2) procedures for an application for a loan;
[(3) minimum requirements for the loan program and
for receiving a loan, including--
[(A) online forms to be used in submitting a
request for a loan;
[(B) information to be included in such
forms; and
[(C) procedures to assist in filing and
pursuing a loan; and
[(4) any other terms and conditions the Secretary may
prescribe after taking into consideration the structure
of other existing capital financing loan programs under
this Act.
[(g) Definitions.--In this section:
[(1) Institution affected by a gulf hurricane
disaster.--The term ``institution affected by a Gulf
hurricane disaster'' means an institution of higher
education that--
[(A) is located in an area affected by a Gulf
hurricane disaster; and
[(B) is able to demonstrate that the
institution--
[(i) incurred physical damage
resulting from the impact of a Gulf
hurricane disaster; and
[(ii) was not able to fully reopen in
existing facilities or to fully reopen
to the pre-hurricane levels for 30 days
or more on or after August 29, 2005.
[(2) Area affected by a gulf hurricane disaster; gulf
hurricane disaster.--The terms ``area affected by a
Gulf hurricane disaster'' and ``Gulf hurricane
disaster'' have the meanings given such terms in
section 209 of the Higher Education Hurricane Relief
Act of 2005 (Public Law 109-148, 119 Stat. 2808).
[(3) Emergency.--The term ``emergency'' has the
meaning given such term in section 102(1) of the Robert
T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122(1)).
[(4) Institutions of higher education.--The term
``institution of higher education'' has the meaning
given such term in section 101.
[(5) Major disaster.--The term ``major disaster'' has
the meaning given the term in section 102(2) of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122(2)).
[(h) Effective Date.--Loans provided to institutions of
higher education pursuant to this section shall be available
only with respect to major disasters or emergencies declared by
the President that occur after the date of the enactment of
theHigher Education Opportunity Act, except that loans may be
provided pursuant to this section to an institution affected by
a Gulf hurricane disaster with respect to such disaster.
[(i) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[SEC. 825. GUIDANCE ON MENTAL HEALTH DISCLOSURES FOR STUDENT SAFETY.
[(a) Guidance.--The Secretary shall continue to provide
guidance that clarifies the role of institutions of higher
education with respect to the disclosure of education records,
including to a parent or legal guardian of a dependent student,
in the event that such student demonstrates that the student
poses a significant risk of harm to himself or herself or to
others, including a significant risk of suicide, homicide, or
assault. Such guidance shall further clarify that an
institution of higher education that, in good faith, discloses
education records or other information in accordance with the
requirements of this Act and section 444 of the General
Education Provisions Act (commonly known as the ``Family
Educational Rights and Privacy Act of 1974'') shall not be
liable to any person for that disclosure.
[(b) Information to Congress.--The Secretary shall provide an
update to the authorizing committees on the Secretary's
activities under subsection (a) not later than 180 days after
the date of enactment of theHigher Education Opportunity Act.
[SEC. 826. RULE OF CONSTRUCTION.
[Nothing in this part shall be construed--
[(1) to provide a private right of action to any
person to enforce any provision of this section;
[(2) to create a cause of action against any
institution of higher education or any employee of the
institution for any civil liability; or
[(3) to affect section 444 of the General Education
Provisions Act (commonly known as the ``Family
Educational Rights and Privacy Act of 1974'') or the
regulations issued under section 264 of the Health
Insurance Portability and Accountability Act of 1996
(42 U.S.C. 1320d-2note).
[PART M--LOW TUITION
[SEC. 830. INCENTIVES AND REWARDS FOR LOW TUITION.
[(a) Rewards for Low Tuition.--
[(1) Grants.--From funds made available under
subsection (e), the Secretary shall award grants to
institutions of higher education that, for academic
year 2009-2010 or any succeeding academic year--
[(A) have an annual tuition and fee increase,
expressed as a percentage change, for the most
recent academic year for which satisfactory
data is available, that is in the lowest 20
percent of such increases for each category
described in subsection (b);
[(B) are public institutions of higher
education that have tuition and fees that are
in the lowest quartile of institutions in each
category described in subsection (b)(1),
(b)(4), or (b)(7); or
[(C) are public institutions of higher
education that have a tuition and fee increase
of less than $600 for a first-time, full-time
undergraduate student.
[(2) Use of funds.--Funds awarded to an institution
of higher education under paragraph (1) shall be
distributed by the institution in the form of need-
based grant aid to students who are eligible for
Federal Pell Grants, except that no student shall
receive an amount under this section that would cause
the amount of total financial aid received by such
student to exceed the cost of attendance of the
institution.
[(b) Categories of Institutions.--The categories of
institutions described in subsection (a) shall be the
following:
[(1) four-year public institutions of higher
education;
[(2) four-year private, nonprofit institutions of
higher education;
[(3) four-year private, for-profit institutions of
higher education;
[(4) two-year public institutions of higher
education;
[(5) two-year private, nonprofit institutions of
higher education;
[(6) two-year private, for-profit institutions of
higher education;
[(7) less than two-year public institutions of higher
education;
[(8) less than two-year private, nonprofit
institutions of higher education; and
[(9) less than two-year private, for-profit
institutions of higher education.
[(c) Rewards for Guaranteed Tuition.--
[(1) Bonus.--For each institution of higher education
that the Secretary determines complies with the
requirements of paragraph (2) or (3) of this
subsection, the Secretary shall provide to such
institution a bonus amount. Such institution shall
award the bonus amount in the form of need-based aid
first to students who are eligible for Federal Pell
Grants who were in attendance at the institution during
the award year that such institution satisfied the
eligibility criteria for maintaining low tuition and
fees, then to students who are eligible for Federal
Pell Grants who were not in attendance at the
institution during such award year.
[(2) Four-year institutions.--An institution of
higher education that provides a program of instruction
for which it awards a bachelor's degree complies with
the requirements of this paragraph if--
[(A) for a public institution of higher
education, such institution's tuition and fees
are in the lowest quartile of institutions in
the same category as described under subsection
(b); or
[(B) for any institution of higher education,
such institution guarantees that for any
academic year (or the equivalent) beginning on
or after July 1, 2009, and for each of the four
succeeding continuous academic years, the
tuition and fees charged to an undergraduate
student will not exceed--
[(i) for a public institution of
higher education, $600 per year for a
full-time undergraduate student; or
[(ii) for any other institution of
higher education--
[(I) the amount that the
student was charged for an
academic year at the time the
student first enrolled in the
institution of higher
education, plus
[(II) the percentage change
in tuition and fees at the
institution for the three most
recent academic years for which
data is available, multiplied
by the amount determined under
subclause (I).
[(3) Less-than four-year institutions.--An
institution of higher education that does not provide a
program of instruction for which it awards a bachelor's
degree complies with the requirements of this paragraph
if--
[(A) for a public institution of higher
education, such institution's tuition is in the
lowest quartile of institutions in the same
category as described under subsection (b); or
[(B) for any institution of higher education,
such institution guarantees that for any
academic year (or the equivalent) beginning on
or after July 1, 2009, and for each of the 1.5
succeeding continuous academic years, the
tuition and fees charged to an undergraduate
student will not exceed--
[(i) for a public institution of
higher education, $600 per year for a
full-time undergraduate student; or
[(ii) for any other institution of
higher education--
[(I) the amount that the
student was charged for an
academic year at the time the
student first enrolled in the
institution of higher
education, plus
[(II) the percentage change
in tuition and fees at the
institution for the three most
recent academic years for which
data is available, multiplied
by the amount determined under
subclause (I).
[(d) Definitions.--In this section, the terms ``tuition and
fees'' and ``net price'' have the meaning given to such terms
in section 132 of this Act.
[(e) Authorization.--There are authorized to be appropriated
to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.
[PART N--COOPERATIVE EDUCATION
[SEC. 831. STATEMENT OF PURPOSE; DEFINITION.
[(a) Purpose.--It is the purpose of this part to award grants
to institutions of higher education or consortia of such
institutions to encourage such institutions to develop and make
available to their students work experience that will aid such
students in future careers and will enable such students to
support themselves financially while in school.
[(b) Definition.--In this part the term ``cooperative
education'' means the provision of alternating or parallel
periods of academic study and public or private employment to
give students work experiences related to their academic or
occupational objectives and an opportunity to earn the funds
necessary for continuing and completing their education.
[SEC. 832. RESERVATIONS.
[(a) Reservations.--Of the amount appropriated to carry out
this part in each fiscal year--
[(1) not less than 50 percent shall be available for
awarding grants to institutions of higher education and
consortia of such institutions described in section
833(a)(1)(A) for cooperative education under section
833;
[(2) not less than 25 percent shall be available for
awarding grants to institutions of higher education
described in section 833(a)(1)(B) for cooperative
education under section 833;
[(3) not to exceed 11 percent shall be available for
demonstration projects under paragraph (1) of section
834(a);
[(4) not to exceed 11 percent shall be available for
training and resource centers under paragraph (2) of
section 834(a); and
[(5) not to exceed 3 percent shall be available for
research under paragraph (3) of section 834(a).
[(b) Availability of Appropriations.--Amounts appropriated
under this part shall not be used for the payment of
compensation of students for employment by employers
participating in a program under this part.
[SEC. 833. GRANTS FOR COOPERATIVE EDUCATION.
[(a) Grants Authorized.--
[(1) In general.--The Secretary is authorized, from
the amount available to carry out this section under
section 835 in each fiscal year and in accordance with
the provisions of this part--
[(A) to award grants to institutions of
higher education or consortia of such
institutions that have not received a grant
under this paragraph in the ten-year period
preceding the date for which a grant under this
section is requested to pay the Federal share
of the cost of planning, establishing,
expanding, or carrying out programs of
cooperative education by such institutions or
consortia of institutions; and
[(B) to award grants to institutions of
higher education that are operating an existing
cooperative education program as determined by
the Secretary to pay the Federal share of the
cost of planning, establishing, expanding, or
carrying out programs of cooperative education
by such institutions.
[(2) Program requirement.--Cooperative education
programs assisted under this section shall provide
alternating or parallel periods of academic study and
of public or private employment, giving students work
experience related to their academic or occupational
objectives and the opportunity to earn the funds
necessary for continuing and completing their
education.
[(3) Amount of grants.--
[(A) The amount of each grant awarded
pursuant to paragraph (1)(A) to any institution
of higher education or consortia of such
institutions in any fiscal year shall not
exceed $500,000.
[(B)(i) Except as provided in clauses (ii)
and (iii), the Secretary shall award grants in
each fiscal year to each institution of higher
education described in paragraph (1)(B) that
has an application approved under subsection
(b) in an amount that bears the same ratio to
the amount reserved pursuant to section
832(a)(2) for such fiscal year as the number of
unduplicated students placed in cooperative
education jobs during the preceding fiscal year
by such institution of higher education (other
than cooperative education jobs under section
834 and as determined by the Secretary) bears
to the total number of all such students placed
in such jobs during the preceding fiscal year
by all such institutions.
[(ii) No institution of higher education shall
receive a grant pursuant to paragraph (1)(B) in any
fiscal year in an amount that exceeds 25 percent of
such institution's cooperative education program's
personnel and operating budget for the preceding fiscal
year.
[(iii) The minimum annual grant amount that an
institution of higher education is eligible to receive
under paragraph (1)(B) is $1,000 and the maximum annual
grant amount is $75,000.
[(4) Limitation.--The Secretary shall not award
grants pursuant to subparagraphs (A) and (B) of
paragraph (1) to the same institution of higher
education or consortia of such institution in any one
fiscal year.
[(5) Uses.--Grants awarded under paragraph (1)(B)
shall be used exclusively--
[(A) to expand the quality of and
participation in a cooperative education
program;
[(B) for outreach to potential participants
in new curricular areas; and
[(C) for outreach to potential participants
including underrepresented and nontraditional
populations.
[(b) Applications.--Each institution of higher education or
consortium of such institutions desiring to receive a grant
under this section shall submit an application to the Secretary
at such time and in such manner as the Secretary shall
prescribe. Each such application shall--
[(1) set forth the program or activities for which a
grant is authorized under this section;
[(2) specify each portion of such program or
activities which will be performed by a nonprofit
organization or institution other than the applicant,
and the amount of grant funds to be used for such
program or activities;
[(3) provide that the applicant will expend, during
the fiscal year for which the grant is awarded for the
purpose of such program or activities, not less than
the amount expended for such purpose during the
previous fiscal year;
[(4) describe the plans which the applicant will
carry out to assure, and contain a formal statement of
the institution's commitment that assures, that the
applicant will continue the cooperative education
program beyond the five-year period of Federal
assistance described in subsection (c)(1) at a level
that is not less than the total amount expended for
such program during the first year such program was
assisted under this section;
[(5) provide that, in the case of an institution of
higher education that provides a two-year program that
is acceptable for full credit toward a bachelor's
degree, the cooperative education program will be
available to students who are certificate or associate
degree candidates and who carry at least one-half of
the normal full-time academic workload;
[(6) provide that the applicant will--
[(A) make such reports as may be necessary to
ensure that the applicant is complying with the
provisions of this section, including reports
for the second and each succeeding fiscal year
for which the applicant receives a grant with
respect to the impact of the cooperative
education program in the previous fiscal year,
including--
[(i) the number of unduplicated
student applicants in the cooperative
education program;
[(ii) the number of unduplicated
students placed in cooperative
education jobs;
[(iii) the number of employers who
have hired cooperative education
students;
[(iv) the income for students derived
from working in cooperative education
jobs; and
[(v) the increase or decrease in the
number of unduplicated students placed
in cooperative education jobs in each
fiscal year compared to the previous
fiscal year; and
[(B) keep such records as may be necessary to
ensure that the applicant is complying with the
provisions of this part, including the notation
of cooperative education employment on the
student's transcript;
[(7) describe the extent to which programs in the
academic disciplines for which the application is made
have satisfactorily met the needs of public and private
sector employers;
[(8) describe the extent to which the institution is
committed to extending cooperative education on an
institution-wide basis for all students who can
benefit;
[(9) describe the plans that the applicant will carry
out to evaluate the applicant's cooperative education
program at the end of the grant period;
[(10) provide for such fiscal control and fund
accounting procedures as may be necessary to ensure
proper disbursement of, and accounting for, Federal
funds paid to the applicant under this part;
[(11) demonstrate a commitment to serving underserved
populations at the institution; and
[(12) include such other information as may be
necessary to carry out the provisions of this part.
[(c) Duration of Grants; Federal Share.--
[(1) Duration of grants.--No individual institution
of higher education may receive, individually or as a
participant in a consortium of such institutions--
[(A) a grant pursuant to subsection (a)(1)(A)
for more than five fiscal years; or
[(B) a grant pursuant to subsection (a)(1)(B)
for more than five fiscal years.
[(2) Federal share.--The Federal share of a grant
under subsection (a)(1)(A) may not exceed--
[(A) 85 percent of the cost of carrying out
the program or activities described in the
application in the first year the applicant
receives a grant under this section;
[(B) 70 percent of such cost in the second
such year;
[(C) 55 percent of such cost in the third
such year;
[(D) 40 percent of such cost in the fourth
such year; and
[(E) 25 percent of such cost in the fifth
such year.
[(3) Special rule.--Notwithstanding any other
provision of law, the Secretary may not waive the
provisions of paragraphs (1) and (2).
[(d) Maintenance of Effort.--If the Secretary determines that
a recipient of funds under this section has failed to maintain
the fiscal effort described in subsection (b)(3), then the
Secretary may elect not to make grant payments under this
section to such recipient.
[(e) Factors for Special Consideration of Applications.--
[(1) In general.--In approving applications under
this section, the Secretary shall give special
consideration to applications from institutions of
higher education or consortia of such institutions for
programs that show the greatest promise of success
based on--
[(A) the extent to which programs in the
academic discipline with respect to which the
application is made have satisfactorily met the
needs of public and private sector employers;
[(B) the strength of the commitment of the
institution of higher education or consortium
of such institutions to cooperative education
as demonstrated by the plans and formalized
institutional commitment statement which such
institution or consortium has made to continue
the program after the termination of Federal
financial assistance;
[(C) the extent to which the institution or
consortium of institutions is committed to
extending cooperative education for students
who can benefit; and
[(D) such other factors as are consistent
with the purpose of this part.
[(2) Additional special consideration.--The Secretary
shall also give special consideration to applications
from institutions of higher education or consortia of
such institutions that demonstrate a commitment to
serving underserved populations attending such
institutions.
[SEC. 834. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING AND RESOURCE
CENTERS; AND RESEARCH.
[(a) Authorization.--From the amounts appropriated under
section 835, the Secretary is authorized, in accordance with
the provisions of this section, to make grants and enter into
contracts--
[(1) from the amounts available in each fiscal year
under section 832(a)(3), for the conduct of
demonstration projects designed to demonstrate or
determine the effectiveness of innovative methods of
cooperative education;
[(2) from the amounts available in each fiscal year
under section 832(a)(4), for the conduct of training
and resource centers designed to--
[(A) train personnel in the field of
cooperative education;
[(B) improve materials used in cooperative
education programs if such improvement is
conducted in conjunction with other activities
described in this paragraph;
[(C) provide technical assistance to
institutions of higher education to increase
the potential of the institution to continue to
conduct a cooperative education program without
Federal assistance;
[(D) encourage model cooperative education
programs that furnish education and training in
occupations in which there is a national need;
[(E) support partnerships under which an
institution carrying out a comprehensive
cooperative education program joins with one or
more institutions of higher education in order
to--
[(i) assist the institution that is
not the institution carrying out the
cooperative education program to
develop and expand an existing program
of cooperative education; or
[(ii) establish and improve or expand
comprehensive cooperative education
programs; and
[(F) encourage model cooperative education
programs in the fields of science and
mathematics for women and minorities who are
underrepresented in such fields; and
[(3) from the amounts available in each fiscal year
under section 832(a)(5), for the conduct of research
relating to cooperative education.
[(b) Administrative Provision.--
[(1) In general.--To carry out this section, the
Secretary may--
[(A) make grants to or contracts with
institutions of higher education or consortia
of such institutions; and
[(B) make grants to or contracts with other
public or private nonprofit agencies or
organizations, whenever such grants or
contracts will contribute to the objectives of
this section.
[(2) Limitation.--
[(A) Contracts with institutions of higher
education.--The Secretary may use not more than
three percent of the amount appropriated to
carry out this section in each fiscal year to
enter into contracts described in paragraph
(1)(A).
[(B) Contracts with other agencies or
organizations.--The Secretary may use not more
than three percent of the amount appropriated
to carry out this section in each fiscal year
to enter into contracts described in paragraph
(1)(B).
[(c) Supplement Not Supplant.--A recipient of a grant or
contract under this section may use the funds provided only to
supplement funds made available from non-Federal sources to
carry out the activities supported by such grant or contract,
and in no case to supplant such funds from non-Federal sources.
[SEC. 835. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
part such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years.
[PART O--COLLEGE PARTNERSHIP GRANTS
[SEC. 841. COLLEGE PARTNERSHIP GRANTS AUTHORIZED.
[(a) Grants Authorized.--From the amount appropriated to
carry out this section, the Secretary shall award grants to
eligible partnerships for the purposes of developing and
implementing articulation agreements.
[(b) Eligible Partnerships.--For purposes of this part, an
eligible partnership shall include at least two institutions of
higher education, or a system of institutions of higher
education, and may include either or both of the following:
[(1) A consortia of institutions of higher education.
[(2) A State higher education agency.
[(c) Priority.--The Secretary shall give priority to eligible
partnerships that--
[(1) are located in a State that has employed
strategies described in section 486A(b)(1); or
[(2) include--
[(A) one or more junior or community colleges
(as defined by section 312(f)) that award
associate's degrees; and
[(B) one or more institutions of higher
education that offer a baccalaureate or post-
baccalaureate degree not awarded by the
institutions described in subparagraph (A) with
which it is partnered.
[(d) Mandatory Use of Funds.--Grants awarded under this part
shall be used for--
[(1) the development of policies and programs to
expand opportunities for students to earn bachelor's
degrees, by facilitating the transfer of academic
credits between institutions and expanding articulation
and guaranteed transfer agreements between institutions
of higher education, including through common course
numbering and general education core curriculum;
[(2) academic program enhancements; and
[(3) programs to identify and remove barriers that
inhibit student transfers, including technological and
informational programs.
[(e) Optional Use of Funds.--Grants awarded under this part
may be used for--
[(1) support services to students participating in
the program, such as tutoring, mentoring, and academic
and personal counseling; and
[(2) any service that facilitates the transition of
students between the partner institutions.
[(f) Prohibition.--No funds provided under this section shall
be used to financially compensate an institution for the
purposes of entering into an articulation agreement or for
accepting students transferring into such institution.
[(g) Applications.--Any eligible partnership that desires to
obtain a grant under this section shall submit to the Secretary
an application at such time, in such manner, and containing
such information or assurances as the Secretary may require.
[(h) Definition.--For purposes of this section, the term
``articulation agreement'' means an agreement between
institutions of higher education that specifies the
acceptability of courses in transfer toward meeting specific
degree requirements.
[(i) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART P--JOBS TO CAREERS
[SEC. 851. GRANTS TO CREATE BRIDGES FROM JOBS TO CAREERS.
[(a) Purpose.--The purpose of this section is to provide
grants on a competitive basis to institutions of higher
education for the purpose of improving developmental education
to help students move more rapidly into for-credit occupational
courses and into better jobs that may require a certificate or
degree.
[(b) Authorization of Program.--From amounts appropriated to
carry out this section, the Secretary shall award grants, on a
competitive basis, to institutions of higher education, as
defined in section 101(a), to create workforce bridge programs
between developmental courses and for-credit courses in
occupational certificate programs that are articulated to
degree programs. Such workforce bridge programs shall focus
on--
[(1) improving developmental education, including
English language instruction, by customizing
developmental education to student career goals; and
[(2) helping students move rapidly from developmental
coursework into for-credit occupational courses and
through program completion.
[(c) Application.--An institution of higher education
desiring a grant under this section shall submit an application
to the Secretary at such time, in such manner, and containing
such information as the Secretary may reasonably require.
[(d) Priorities.--The Secretary shall give priority to
applications that--
[(1) are from institutions of higher education in
which not less than 50 percent of the institution's
entering first-year students who are subject to
mandatory assessment are assessed as needing
developmental courses to bring reading, writing, or
mathematics skills up to college level; and
[(2) propose to replicate practices that have proven
effective with adults, or propose to collaborate with
adult education providers.
[(e) Required Activity.--An institution of higher education
that receives a grant under this section shall use the grant
funds to create workforce bridge programs to customize
developmental education curricula, including English language
instruction, to reflect the content of for-credit occupational
certificate or degree programs, or clusters of such programs,
in which developmental education students are enrolled or plan
to enroll. Such workforce bridge programs shall integrate the
curricula and the instruction of the developmental and college-
level coursework.
[(f) Permissible Activities.--An institution of higher
education that receives a grant under this section may use the
grant funds to carry out one or more of the following
activities:
[(1) Designing and implementing innovative ways to
improve retention in and completion of developmental
education courses, including enrolling students in
cohorts, accelerating course content, dually enrolling
students in developmental and college-level courses,
tutoring, providing counseling and other supportive
services, and giving small, material incentives for
attendance and performance.
[(2) In consultation with faculty in the appropriate
departments, reconfiguring courses offered on-site
during standard academic terms for modular, compressed,
or other alternative schedules, or for distance-
learning formats, to meet the needs of working adults.
[(3) Developing counseling strategies that address
the needs of students in remedial education courses,
and including counseling students on career options and
the range of programs available, such as certificate
programs that are articulated to degree programs and
programs designed to facilitate transfer to four-year
institutions of higher education.
[(4) Improving the quality of teaching in remedial
courses through professional development,
reclassification of such teaching positions, or other
means the institution of higher education determines
appropriate.
[(5) Any other activities the institution of higher
education and the Secretary determine will promote
retention of, and completion by, students attending
institutions of higher education.
[(g) Grant Period.--Grants made under this section shall be
for a period of not less than three years and not more than
five years.
[(h) Technical Assistance.--The Secretary shall provide
technical assistance to recipients of, and applicants for,
grants under this section.
[(i) Report and Summary.--Each institution of higher
education that receives a grant under this section shall report
to the Secretary on the effectiveness of the program in
enabling students to move rapidly from developmental coursework
into for-credit occupational courses and through program
completion. The Secretary shall summarize the reports, identify
best practices, and disseminate the information from such
summary and identification to the public.
[(j) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART Q--RURAL DEVELOPMENT GRANTS FOR RURAL-SERVING COLLEGES AND
UNIVERSITIES
[SEC. 861. GRANTS TO RURAL-SERVING INSTITUTIONS OF HIGHER EDUCATION.
[(a) Purposes.--The purposes of this section are--
[(1) to increase enrollment and graduation rates of
secondary school graduates and nontraditional students
from rural areas at two-year and four-year institutions
of higher education, and their articulation from two-
year degree programs into four-year degree programs;
and
[(2) to promote economic growth and development in
rural America through partnership grants to consortia
of rural-serving institutions of higher education,
local educational agencies, and regional employers.
[(b) Definitions.--For the purposes of this section:
[(1) Rural-serving institution of higher education.--
The term ``rural-serving institution of higher
education'' means an institution of higher education
that primarily serves rural areas.
[(2) Rural area.--The term ``rural area'' means an
area that is defined, identified, or otherwise
recognized as rural by a governmental agency of the
State in which the area is located.
[(3) Nontraditional student.--The term
``nontraditional student'' means an individual who--
[(A) delays enrollment in an institution of
higher education by three or more years after
secondary school graduation;
[(B) attends an institution of higher
education part-time; or
[(C) attends an institution of higher
education and--
[(i) works full-time;
[(ii) is an independent student, as
defined in section 480;
[(iii) has one or more dependents
other than a spouse;
[(iv) is a single parent; or
[(v) does not have a secondary school
diploma or the recognized equivalent of
such a diploma.
[(4) Regional employer.--The term ``regional
employer'' means an employer within a rural area.
[(c) Partnership.--
[(1) Required partners.--A rural-serving institution
of higher education, or a consortium of rural-serving
institutions of higher education, that receives a grant
under this section shall carry out the activities of
the grant in partnership with--
[(A) one or more local educational agencies
serving a rural area; and
[(B) one or more regional employers or local
boards (as such term is defined in section 3 of
the Workforce Innovation and Opportunity Act)
serving a rural area.
[(2) Optional partners.--A rural-serving institution
of higher education, or a consortium of rural-serving
institutions of higher education, that receives a grant
under this section, may carry out the activities of the
grant in partnership with--
[(A) an educational service agency (as
defined in section 8101 of the Elementary and
Secondary Education Act of 1965); or
[(B) a nonprofit organization with
demonstrated expertise in rural education at
the secondary and postsecondary levels.
[(d) Grants Authorized.--
[(1) In general.--From amounts made available under
subsection (g), the Secretary is authorized to award
grants, on a competitive basis, to eligible rural-
serving institutions of higher education or a
consortium of such institutions, to carry out the
activities described in subsection (f).
[(2) Duration.--A grant awarded under this section
shall be awarded for a period not to exceed three
years.
[(3) Maximum and minimum grants.--No grant awarded
under this section shall be less than $200,000.
[(4) Special considerations.--In awarding grants
under this section, the Secretary shall give special
consideration to applications that demonstrate the most
potential and propose the most promising and innovative
approaches for--
[(A) increasing the percentage of graduates
of rural secondary schools attending rural-
serving institutions of higher education;
[(B) meeting the employment needs of regional
employers with graduates of rural-serving
institutions of higher education; and
[(C) improving the health of the regional
economy of a rural area through a partnership
of local educational agencies serving the rural
area, rural-serving institutions of higher
education, and regional employers.
[(5) Limitation.--A rural-serving institution of
higher education shall not receive more than one grant
under this section.
[(e) Applications.--Each rural-serving institution of higher
education desiring a grant under this section shall submit to
the Secretary an application at such time, in such manner, and
containing such information as the Secretary may reasonably
require.
[(f) Required Use of Funds.--A rural-serving institution of
higher education that receives a grant under this section shall
use grant funds for at least three of the following four
purposes:
[(1) To improve postsecondary enrollment rates for
rural secondary school students at rural-serving
institutions of higher education, which may include--
[(A) programs to provide students and
families with counseling related to applying
for postsecondary education, and Federal and
State financial assistance for postsecondary
education;
[(B) programs that provide students and
families of rural high schools access and
exposure to campuses, classes, programs, and
internships of rural-serving institutions of
higher education, including covering the cost
of transportation to and from such
institutions; and
[(C) other initiatives that assist students
and families in applying for and developing
interest in attending rural-serving
institutions of higher education.
[(2) To increase enrollment rates of nontraditional
students in degree programs at rural-serving
institutions of higher education, which may include--
[(A) programs to provide nontraditional
students with counseling related to applying
for postsecondary education, and Federal and
State financial assistance for postsecondary
education;
[(B) community outreach initiatives to
encourage nontraditional students to enroll in
a rural-serving institution of higher
education; and
[(C) programs to improve the enrollment of
nontraditional students in two-year degree
programs and the transition of nontraditional
students articulating from two-year degree
programs to four-year degree programs.
[(3) To create or strengthen academic programs at
rural-serving institutions of higher education to
prepare graduates to enter into high-need occupations
in the regional and local economies.
[(4) To provide additional career training to
students of rural-serving institutions of higher
education in fields relevant to the regional economy.
[(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as many
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART R--CAMPUS-BASED DIGITAL THEFT PREVENTION
[SEC. 871. CAMPUS-BASED DIGITAL THEFT PREVENTION.
[(a) Program Authority.--From the amounts appropriated under
subsection (d), the Secretary may make grants to institutions
of higher education, or consortia of such institutions, and
enter into contracts with such institutions, consortia, and
other organizations, to develop, implement, operate, improve,
and disseminate programs of prevention, education, and cost-
effective technological solutions, to reduce and eliminate the
illegal downloading and distribution of intellectual property.
Such grants or contracts may also be used for the support of
higher education centers that will provide training, technical
assistance, evaluation, dissemination, and associated services
and assistance to the higher education community as determined
by the Secretary and institutions of higher education.
[(b) Awards.--Grants and contracts shall be awarded under
this section on a competitive basis.
[(c) Applications.--An institution of higher education or a
consortium of such institutions that desires to receive a grant
or contract under this section shall submit an application to
the Secretary at such time, in such manner, and containing or
accompanied by such information as the Secretary may reasonably
require by regulation.
[(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART S--TRAINING FOR REALTIME WRITERS
[SEC. 872. PROGRAM TO PROMOTE TRAINING AND JOB PLACEMENT OF REALTIME
WRITERS.
[(a) Authorization of Grant Program.--
[(1) In general.--From the amounts appropriated to
carry out this section, the Secretary shall award
grants, on a competitive basis, to eligible entities
under paragraph (2) to promote training and placement
of individuals, including individuals who have
completed a court reporting training program, as
realtime writers in order to meet the requirements for
closed captioning of video programming set forth in
section 713 of the Communications Act of 1934 (47
U.S.C. 613) and the rules prescribed thereunder.
[(2) Eligible entities.--For purposes of this
section, an eligible entity is a court reporting
program that--
[(A) has a curriculum capable of training
realtime writers qualified to provide
captioning services;
[(B) is accredited by an accrediting agency
or association recognized by the Secretary; and
[(C) is participating in student aid programs
under title IV.
[(3) Priority in grants.--In determining whether to
make grants under this section, the Secretary shall
give a priority to eligible entities that, as
determined by the Secretary--
[(A) possess the most substantial capability
to increase their capacity to train realtime
writers;
[(B) demonstrate the most promising
collaboration with educational institutions,
businesses, labor organizations, or other
community groups having the potential to train
or provide job placement assistance to realtime
writers; or
[(C) propose the most promising and
innovative approaches for initiating or
expanding training or job placement assistance
efforts with respect to realtime writers.
[(4) Duration of grant.--A grant under this section
shall be for a period of up to five years.
[(5) Maximum amount of grant.--The amount of a grant
provided under this subsection to an eligible entity
may not exceed $1,500,000 for the period of the grant.
[(b) Application.--
[(1) In general.--To receive a grant under subsection
(a), an eligible entity shall submit an application to
the Secretary at such time and in such manner as the
Secretary may require. The application shall contain
the information set forth under paragraph (2).
[(2) Information.--Information in the application of
an eligible entity for a grant under subsection (a)
shall include the following:
[(A) A description of the training and
assistance to be funded using the grant amount,
including how such training and assistance will
increase the number of realtime writers.
[(B) A description of performance measures to
be utilized to evaluate the progress of
individuals receiving such training and
assistance in matters relating to enrollment,
completion of training, and job placement and
retention.
[(C) A description of the manner in which the
eligible entity will ensure that recipients of
scholarships, if any, funded by the grant will
be employed and retained as realtime writers.
[(D) A description of the manner in which the
eligible entity intends to continue providing
the training and assistance to be funded by the
grant after the end of the grant period,
including any partnerships or arrangements
established for that purpose.
[(E) A description of how the eligible entity
will work with local boards (as defined in
section 101 of the Workforce Investment Act of
1998 (29 U.S.C. 2801)) to ensure that training
and assistance to be funded with the grant will
further local workforce goals, including the
creation of educational opportunities for
individuals who are from economically
disadvantaged backgrounds or are displaced
workers.
[(F) Additional information, if any, on the
eligibility of the eligible entity for priority
in the making of grants under subsection
(a)(3).
[(G) Such other information as the Secretary
may require.
[(c) Use of Funds.--
[(1) In general.--An eligible entity receiving a
grant under subsection (a) shall use the grant amount
for purposes relating to the recruitment, training and
assistance, and job placement of individuals, including
individuals who have completed a court reporting
training program, as realtime writers, including--
[(A) recruitment;
[(B) subject to paragraph (2), the provision
of scholarships;
[(C) distance learning;
[(D) further developing and implementing both
English and Spanish curricula to more
effectively train individuals in realtime
writing skills, and education in the knowledge
necessary for the delivery of high quality
closed captioning services;
[(E) mentoring students to ensure successful
completion of the realtime training and
providing assistance in job placement;
[(F) encouraging individuals with
disabilities to pursue a career in realtime
writing; and
[(G) the employment and payment of personnel
for the purposes described in this paragraph.
[(2) Scholarships.--
[(A) Amount.--The amount of a scholarship
under paragraph (1)(B) shall be based on the
amount of need of the scholarship recipient for
financial assistance, as determined in
accordance with part F of title IV.
[(B) Agreement.--Each recipient of a
scholarship under paragraph (1)(B) shall enter
into an agreement with the school in which the
recipient is enrolled to provide realtime
writing services for the purposes described in
subsection (a)(1) for a period of time
appropriate (as determined by the Secretary)
for the amount of the scholarship received.
[(C) Coursework and employment.--The
Secretary shall establish requirements for
coursework and employment for recipients of
scholarships under paragraph (1)(B), including
requirements for repayment of scholarship
amounts in the event of failure to meet such
requirements for coursework and employment. The
Secretary may waive, in whole or in part, the
requirements for repayment of scholarship
amounts on the basis of economic conditions
which may affect the ability of scholarship
recipients to find work as realtime writers.
[(3) Administrative costs.--The recipient of a grant
under this section may not use more than five percent
of the grant amount to pay administrative costs
associated with activities funded by the grant. The
Secretary shall use not more than five percent of the
amount available for grants under this section in any
fiscal year for administrative costs of the program.
[(4) Supplement not supplant.--Grant amounts under
this section shall supplement and not supplant other
Federal or non-Federal funds of the grant recipient for
purposes of promoting the training and placement of
individuals as realtime writers.
[(d) Report.--
[(1) In general.--Each eligible entity receiving a
grant under subsection (a) shall submit to the
Secretary, at the end of the grant period, a report on
the activities of such entity with respect to the use
of grant amounts during the grant period.
[(2) Report information.--Each report of an eligible
entity under paragraph (1) shall include--
[(A) an assessment by the entity of the
effectiveness of activities carried out using
such funds in increasing the number of realtime
writers, using the performance measures
submitted by the eligible entity in the
application for the grant under subsection
(b)(2); and
[(B) a description of the best practices
identified by the eligible entity for
increasing the number of individuals who are
trained, employed, and retained in employment
as realtime writers.
[(3) Summaries.--The Secretary shall summarize the
reports submitted under paragraph (2) and make such
summary available on the Department's website.
[(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART T--CENTERS OF EXCELLENCE FOR VETERAN STUDENT SUCCESS
[SEC. 873. MODEL PROGRAMS FOR CENTERS OF EXCELLENCE FOR VETERAN STUDENT
SUCCESS.
[(a) Purpose.--It is the purpose of this section to encourage
model programs to support veteran student success in
postsecondary education by coordinating services to address the
academic, financial, physical, and social needs of veteran
students.
[(b) Grants Authorized.--
[(1) In general.--Subject to the availability of
appropriations under subsection (f), the Secretary
shall award grants to institutions of higher education
to develop model programs to support veteran student
success in postsecondary education.
[(2) Grant period.--A grant awarded under this
section shall be awarded for a period of three years.
[(c) Use of Grants.--
[(1) Required activities.--An institution of higher
education receiving a grant under this section shall
use such grant to carry out a model program that
includes--
[(A) establishing a Center of Excellence for
Veteran Student Success on the campus of the
institution to provide a single point of
contact to coordinate comprehensive support
services for veteran students;
[(B) establishing a veteran student support
team, including representatives from the
offices of the institution responsible for
admissions, registration, financial aid,
veterans benefits, academic advising, student
health, personal or mental health counseling,
career advising, disabilities services, and any
other office of the institution that provides
support to veteran students on campus;
[(C) providing a coordinator whose primary
responsibility is to coordinate the model
program carried out under this section;
[(D) monitoring the rates of veteran student
enrollment, persistence, and completion; and
[(E) developing a plan to sustain the Center
of Excellence for Veteran Student Success after
the grant period.
[(2) Other authorized activities.--An institution of
higher education receiving a grant under this section
may use such grant to carry out any of the following
activities with respect to veteran students:
[(A) Outreach and recruitment of such
students.
[(B) Supportive instructional services for
such students, which may include--
[(i) personal, academic, and career
counseling, as an ongoing part of the
program;
[(ii) tutoring and academic skill-
building instruction assistance, as
needed; and
[(iii) assistance with special
admissions and transfer of credit from
previous postsecondary education or
experience.
[(C) Assistance in obtaining student
financial aid.
[(D) Housing support for veteran students
living in institutional facilities and
commuting veteran students.
[(E) Cultural events, academic programs,
orientation programs, and other activities
designed to ease the transition to campus life
for veteran students.
[(F) Support for veteran student
organizations and veteran student support
groups on campus.
[(G) Coordination of academic advising and
admissions counseling with military bases and
national guard units in the area.
[(H) Other support services the institution
determines to be necessary to ensure the
success of veterans in achieving educational
and career goals.
[(d) Application; Selection.--
[(1) Application.--To be considered for a grant under
this section, an institution of higher education shall
submit to the Secretary an application at such time, in
such manner, and accompanied by such information as the
Secretary may require.
[(2) Selection considerations.--In awarding grants
under this section, the Secretary shall consider--
[(A) the number of veteran students enrolled
at an institution of higher education; and
[(B) the need for model programs to address
the needs of veteran students at a wide range
of institutions of higher education, including
the need to provide--
[(i) an equitable distribution of
such grants to institutions of higher
education of various types and sizes;
[(ii) an equitable geographic
distribution of such grants; and
[(iii) an equitable distribution of
such grants among rural and urban
areas.
[(e) Evaluation and Accountability Plan.--The Secretary shall
develop an evaluation and accountability plan for model
programs funded under this section to objectively measure the
impact of such programs, including a measure of whether
postsecondary education enrollment, persistence, and completion
for veterans increases as a result of such programs.
[(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART U--UNIVERSITY SUSTAINABILITY PROGRAMS
[SEC. 881. SUSTAINABILITY PLANNING GRANTS AUTHORIZED.
[(a) Program Authorized.--
[(1) In general.--From the amounts appropriated to
carry out this section, the Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall make grants to eligible entities to
establish sustainability programs to design and
implement sustainability practices, including in the
areas of energy management, greenhouse gas emissions
reductions, green building, waste management,
purchasing, transportation, and toxics management, and
other aspects of sustainability that integrate campus
operations with multidisciplinary academic programs and
are applicable to the private and government sectors.
[(2) Period of grant.--The provision of payments
under a grant under paragraph (1) shall extend over a
period of not more than four fiscal years.
[(3) Definition of eligible entity.--For purposes of
this part, the term ``eligible entity'' means--
[(A) an institution of higher education; or
[(B) a nonprofit consortium, association,
alliance, or collaboration operating in
partnership with one or more institutions of
higher education that received funds for the
implementation of work associated with
sustainability programs under this part.
[(b) Applications.--
[(1) In general.--To receive a grant under subsection
(a)(1), an eligible entity shall submit an application
to the Secretary at such time, in such form, and
containing such information as the Secretary may
reasonably require.
[(2) Assurances.--Such application shall include
assurances that the eligible entity--
[(A) has developed a plan, including an
evaluation component, for the program component
established pursuant to subsection (c);
[(B) shall use Federal funds received from a
grant under subsection (a) to supplement, not
supplant, non-Federal funds that would
otherwise be available for projects funded
under this section;
[(C) shall provide, with respect to any
fiscal year in which such entity receives funds
from a grant under subsection (a)(1), non-
Federal funds or an in-kind contribution in an
amount equal to 20 percent of funds from such
grant, for the purpose of carrying out the
program component established pursuant to
subsection (c); and
[(D) shall collaborate with business,
government, and the nonprofit sectors in the
development and implementation of its
sustainability plan.
[(c) Use of Funds.--
[(1) Individual institutions.--Grants made under
subsection (a) may be used by an eligible entity that
is an individual institution of higher education for
the following purposes:
[(A) To develop and implement administrative
and operations practices at an institution of
higher education that test, model, and analyze
principles of sustainability.
[(B) To establish multidisciplinary
education, research, and outreach programs at
an institution of higher education that address
the environmental, social, and economic
dimensions of sustainability.
[(C) To support research and teaching
initiatives that focus on multidisciplinary and
integrated environmental, economic, and social
elements.
[(D) To establish initiatives in the areas of
energy management, greenhouse gas emissions
reductions, green building, waste management,
purchasing, toxics management, transportation,
and other aspects of sustainability.
[(E) To support student, faculty, and staff
work at an institution of higher education to
implement, research, and evaluate sustainable
practices.
[(F) To expand sustainability literacy on
campus.
[(G) To integrate sustainability curricula in
all programs of instruction, particularly in
business, architecture, technology,
manufacturing, engineering, and science
programs.
[(2) Partnerships.--Grants made under subsection (a)
may be used by an eligible entity that is a nonprofit
consortium, association, alliance, or collaboration
operating in partnership with one or more institutions
of higher education for the following purposes:
[(A) To conduct faculty, staff and
administrator training on the subjects of
sustainability and institutional change.
[(B) To compile, evaluate, and disseminate
best practices, case studies, guidelines and
standards regarding sustainability.
[(C) To conduct efforts to engage external
stakeholders such as business, alumni, and
accrediting agencies in the process of building
support for research, education, and technology
development for sustainability.
[(D) To conduct professional development
programs for faculty in all disciplines to
enable faculty to incorporate sustainability
content in their courses.
[(E) To create the analytical tools necessary
for institutions of higher education to assess
and measure their individual progress toward
fully sustainable campus operations and fully
integrating sustainability into the curriculum.
[(F) To develop educational benchmarks for
institutions of higher education to determine
the necessary rigor and effectiveness of
academic sustainability programs.
[(d) Reports.--An eligible entity that receives a grant under
subsection (a) shall submit to the Secretary, for each fiscal
year in which the entity receives amounts from such grant, a
report that describes the work conducted pursuant to subsection
(c), research findings and publications, administrative savings
experienced, and an evaluation of the program.
[(e) Allocation Requirement.--The Secretary may not make
grants under subsection (a) to any eligible entity in a total
amount that is less than $250,000 or more than $2,000,000.
[(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART V--MODELING AND SIMULATION PROGRAMS
[SEC. 891. MODELING AND SIMULATION.
[(a) Purpose; Definition.--
[(1) Purpose.--The purpose of this section is to
promote the study of modeling and simulation at
institutions of higher education, through the
collaboration with new and existing programs, and
specifically to promote the use of technology in such
study through the creation of accurate models that can
simulate processes or recreate real life, by--
[(A) establishing a task force at the
Department of Education to raise awareness of
and define the study of modeling and
simulation;
[(B) providing grants to institutions of
higher education to develop new modeling and
simulation degree programs; and
[(C) providing grants for institutions of
higher education to enhance existing modeling
and simulation degree programs.
[(2) Definition.--In this section, the term
``modeling and simulation'' means a field of study
related to the application of computer science and
mathematics to develop a level of understanding of the
interaction of the parts of a system and of a system as
a whole.
[(b) Establishment of Task Force.--
[(1) In general.--Subject to the availability of
appropriations, the Secretary shall establish a task
force within the Department to study modeling and
simulation and to support the development of the
modeling and simulation field. The activities of such
task force shall include--
[(A) helping to define the study of modeling
and simulation (including the content of
modeling and simulation classes and programs);
[(B) identifying best practices for such
study;
[(C) identifying core knowledge and skills
that individuals who participate in modeling
and simulation programs should acquire; and
[(D) providing recommendations to the
Secretary with respect to--
[(i) the information described in
subparagraphs (A) through (C); and
[(ii) a system by which grants under
this section will be distributed.
[(2) Task force membership.--The membership of the
task force under this subsection shall be composed of
representatives from--
[(A) institutions of higher education with
established modeling and simulation degree
programs;
[(B) the National Science Foundation;
[(C) Federal Government agencies that use
modeling and simulation extensively, including
the Department of Defense, the National
Institutes of Health, the Department of
Homeland Security, the Department of Health and
Human Services, the Department of Energy, and
the Department of Transportation;
[(D) private industries with a primary focus
on modeling and simulation;
[(E) national modeling and simulation
organizations; and
[(F) the Office of Science and Technology
Policy.
[(c) Enhancing Modeling and Simulation at Institutions of
Higher Education.--
[(1) Enhancement grants authorized.--
[(A) In general.--The Secretary is authorized
to award grants, on a competitive basis, to
eligible institutions to enhance modeling and
simulation degree programs at such eligible
institutions.
[(B) Duration of grant.--A grant awarded
under this subsection shall be awarded for a
three-year period, and such grant period may be
extended for not more than two years if the
Secretary determines that an eligible
institution has demonstrated success in
enhancing the modeling and simulation degree
program at such eligible institution.
[(C) Minimum grant amount.--Subject to the
availability of appropriations, a grant awarded
to an eligible institution under this
subsection shall not be less than $750,000.
[(D) Non-federal share.--Each eligible
institution receiving a grant under this
subsection shall provide, from non-Federal
sources, in cash or in-kind, an amount equal to
25 percent of the amount of the grant to carry
out the activities supported by the grant. The
Secretary may waive the non-Federal share
requirement under this subparagraph for an
eligible institution if the Secretary
determines a waiver to be appropriate based on
the financial ability of the institution.
[(2) Eligible institutions.--For the purposes of this
subsection, an eligible institution is an institution
of higher education that--
[(A) has an established modeling and
simulation degree program, including a major,
minor, or career-track program; or
[(B) has an established modeling and
simulation certificate or concentration
program.
[(3) Application.--To be considered for a grant under
this subsection, an eligible institution shall submit
to the Secretary an application at such time, in such
manner, and containing such information as the
Secretary may require. Such application shall include--
[(A) a letter from the president or provost
of the eligible institution that demonstrates
the institution's commitment to the enhancement
of the modeling and simulation program at the
institution of higher education;
[(B) an identification of designated faculty
responsible for the enhancement of the
institution's modeling and simulation program;
and
[(C) a detailed plan for how the grant funds
will be used to enhance the modeling and
simulation program of the institution.
[(4) Uses of funds.--A grant awarded under this
subsection shall be used by an eligible institution to
carry out the plan developed in accordance with
paragraph (3)(C) to enhance modeling and simulation
programs at the institution, which may include--
[(A) in the case of an institution that is
eligible under paragraph (2)(B), activities to
assist in the establishment of a major, minor,
or career-track modeling and simulation program
at the eligible institution;
[(B) expanding the multidisciplinary nature
of the institution's modeling and simulation
programs;
[(C) recruiting students into the field of
modeling and simulation through the provision
of fellowships or assistantships;
[(D) creating new courses to complement
existing courses and reflect emerging
developments in the modeling and simulation
field;
[(E) conducting research to support new
methodologies and techniques in modeling and
simulation; and
[(F) purchasing equipment necessary for
modeling and simulation programs.
[(d) Establishing Modeling and Simulation Programs.--
[(1) Establishment grants authorized.--
[(A) In general.--The Secretary is authorized
to award grants to institutions of higher
education to establish a modeling and
simulation program, including a major, minor,
career-track, certificate, or concentration
program.
[(B) Duration of grant.--A grant awarded
under this subsection shall be awarded for a
three-year period, and such grant period may be
extended for not more than two years if the
Secretary determines that an eligible
institution has demonstrated success in
establishing a modeling and simulation degree
program at such eligible institution.
[(C) Minimum grant amount.--Subject to the
availability of appropriations, a grant awarded
to an eligible institution under this
subsection shall not be less than $750,000.
[(D) Non-federal share.--Each eligible
institution receiving a grant under this
subsection shall provide, from non-Federal
sources, in cash or in-kind, an amount equal to
25 percent of the amount of the grant to carry
out the activities supported by the grant. The
Secretary may waive the non-Federal share
requirement under this subparagraph for an
eligible institution if the Secretary
determines a waiver to be appropriate based on
the financial ability of the institution.
[(2) Application.--To apply for a grant under this
subsection, an eligible institution shall submit to the
Secretary an application at such time, in such manner,
and containing such information as the Secretary may
require. Such application shall include--
[(A) a letter from the president or provost
of the eligible institution that demonstrates
the institution's commitment to the
establishment of a modeling and simulation
program at the institution of higher education;
[(B) a detailed plan for how the grant funds
will be used to establish a modeling and
simulation program at the institution; and
[(C) a description of how the modeling and
simulation program established under this
subsection will complement existing programs
and fit into the institution's current program
and course offerings.
[(3) Uses of funds.--A grant awarded under this
subsection may be used by an eligible institution to--
[(A) establish, or work toward the
establishment of, a modeling and simulation
program, including a major, minor, career-
track, certificate, or concentration program at
the eligible institution;
[(B) provide adequate staffing to ensure the
successful establishment of the modeling and
simulation program, which may include the
assignment of full-time dedicated or supportive
faculty; and
[(C) purchase equipment necessary for a
modeling and simulation program.
[(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years. Of the amounts authorized to be
appropriated for each fiscal year--
[(1) $1,000,000 is authorized to carry out the
activities of the task force established pursuant to
subsection (b); and
[(2) of the amount remaining after the allocation for
paragraph (1)--
[(A) 50 percent is authorized to carry out
the grant program under subsection (c); and
[(B) 50 percent is authorized to carry out
the grant program under subsection (d).
[PART W--PATH TO SUCCESS
[SEC. 892. PATH TO SUCCESS.
[(a) Purpose.--The purpose of this section is to encourage
community supported programs that--
[(1) leverage and enhance community support for at-
risk young adults by facilitating the transition of
such young adults who are eligible individuals into
productive learning environments where such young
adults can obtain the life, social, academic, career,
and technical skills and credentials necessary to
strengthen the Nation's workforce;
[(2) provide counseling, as appropriate, for eligible
individuals participating in the programs to allow the
eligible individuals to build a relationship with one
or more guidance counselors during the period that the
individuals are enrolled in the programs, including
providing referrals and connections to community
resources that help eligible individuals transition
back into the community with the necessary life,
social, academic, career, and technical skills after
being in detention, or incarcerated, particularly
resources related to health, housing, job training, and
workplace readiness;
[(3) provide training and education for eligible
individuals participating in the programs, to allow
such individuals to assist community officials and law
enforcement agencies with the deterrence and prevention
of gang and youth violence by participating in
seminars, training, and workshops throughout the
community; and
[(4) provide each eligible individual participating
in the programs with individual attention based on a
curriculum that matches the interests and abilities of
the individual to the resources of the program.
[(b) Reentry Education Program.--
[(1) Grant program established.--From the amounts
appropriated under subsection (g), the Secretary is
authorized to award grants to community colleges to
enter into and maintain partnerships with juvenile
detention centers and secure juvenile justice
residential facilities to provide assistance, services,
and education to eligible individuals who reenter the
community and pursue, in accordance with the
requirements of this section, at least one of the
following:
[(A) A certificate of completion for a
specialized area of study, such as career and
technical training and other alternative
postsecondary educational programs.
[(B) An associate's degree.
[(2) Grant period.--A grant awarded under this part
shall be for one four-year period, and may be renewed
for an additional period as the Secretary determines to
be appropriate.
[(3) Application.--A community college desiring to
receive a grant under this section shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the
Secretary shall require. Such application shall
include--
[(A) an assessment of the existing community
resources available to serve at-risk youth;
[(B) a detailed description of the program
and activities the community college will carry
out with such grant; and
[(C) a proposed budget describing how the
community college will use the funds made
available by such grant.
[(4) Priority.--In awarding grants under this part,
the Secretary shall give priority to community colleges
that propose to serve the highest number of priority
individuals, and, among such community colleges, shall
give priority to community colleges that the Secretary
determines will best carry out the purposes of this
part, based on the applications submitted in accordance
with paragraph (3).
[(c) Allowable Uses of Funds.--A community college awarded a
grant under this part may use such grant to--
[(1) pay for tuition and transportation costs of
eligible individuals;
[(2) establish and carry out an education program
that includes classes for eligible individuals that--
[(A) provide marketable life and social
skills to such individuals;
[(B) meet the education program requirements
under subsection (d), including as appropriate,
courses necessary for the completion of a
secondary school diploma or the recognized
equivalent;
[(C) promote the civic engagement of such
individuals; and
[(D) facilitate a smooth reentry of such
individuals into the community;
[(3) create and carry out a mentoring program that
is--
[(A) specifically designed to help eligible
individuals with the potential challenges of
the transitional period from detention to
release;
[(B) created in consultation with guidance
counselors, academic advisors, law enforcement
officials, and other community resources; and
[(C) administered by a program coordinator,
selected and employed by the community college,
who shall oversee each individual's development
and shall serve as the immediate supervisor and
reporting officer to whom the academic
advisors, guidance counselors, and volunteers
shall report regarding the progress of each
such individual;
[(4) facilitate employment opportunities for eligible
individuals by entering into partnerships with public
and private entities to provide opportunities for
internships, apprenticeships, and permanent employment,
as possible, for such individuals; and
[(5) provide training for eligible individuals
participating in the programs, to allow such
individuals to assist community officials and law
enforcement agencies with the deterrence and prevention
of gang and youth violence by participating in seminars
and workshop series throughout the community.
[(d) Education Program Requirements.--An education program
established and carried out under subsection (c) shall--
[(1) include classes that are required for completion
of a certificate, diploma, or degree described in
subparagraph (A) or (B) of subsection (b)(1), including
as appropriate courses necessary for the completion of
a secondary school diploma or the recognized
equivalent;
[(2) provide a variety of academic programs, with
various completion requirements, to accommodate the
diverse academic backgrounds, learning styles, and
academic and career interests of the eligible
individuals who participate in the education program;
[(3) offer flexible academic programs that are
designed to improve the academic development and
achievement of eligible individuals, and to avoid high
attrition rates for such individuals; and
[(4) provide for a uniquely designed education plan
for each eligible individual participating in the
program, which shall require such individual to
receive, at a minimum, a certificate or degree
described in subparagraph (A) or (B) of subsection
(b)(1) to successfully complete such program.
[(e) Reports.--Each community college awarded a grant under
this part shall submit to the Secretary a report--
[(1) documenting the results of the program carried
out with such grant; and
[(2) evaluating the effectiveness of activities
carried out through such program.
[(f) Definitions.--In this section:
[(1) Community college.--The term ``community
college'' has the meaning given the term ``junior or
community college'' in section 312(f).
[(2) Eligible individual.--The term ``eligible
individual'' means an individual who--
[(A) is 16 to 25 years of age (inclusive);
and
[(B)(i) has been convicted of a criminal
offense; and
[(ii) is detained in, or has been released from, a
juvenile detention center or secure juvenile justice
residential facility.
[(3) Gang-related offense.--
[(A) In general.--The term ``gang-related
offense'' means an offense that involves the
circumstances described in subparagraph (B) and
that is--
[(i) a Federal or State felony
involving a controlled substance (as
defined in section 102 of the
Controlled Substances Act (21 U.S.C.
802)) for which the maximum penalty is
not less than five years;
[(ii) a Federal or State crime of
violence that has as an element the use
or attempted use of physical force
against the person of another for which
the maximum penalty is not less than
six months; or
[(iii) a conspiracy to commit an
offense described in clause (i) or
(ii).
[(B) Circumstances.--The circumstances
described in this subparagraph are that the
offense described in subparagraph (A) was
committed by a person who--
[(i) participates in a criminal
street gang (as defined insection
521(a)of title 18, United States Code)
with knowledge that such gang's members
engage in or have engaged in a
continuing series of offenses described
in subparagraph (A); and
[(ii) intends to promote or further
the felonious activities of the
criminal street gang or maintain or
increase the person's position in the
gang.
[(4) Priority individual.--The term ``priority
individual'' means an individual who--
[(A) is an eligible individual;
[(B) has been convicted of a gang-related
offense; and
[(C) has served or is serving a period of
detention in a juvenile detention center or
secure juvenile justice residential facility
for such offense.
[(5) Guidance counselor.--The term ``guidance
counselor'' means an individual who works with at-risk
youth on a one-on-one basis, to establish a supportive
relationship with such at-risk youth and to provide
such at-risk youth with academic assistance and
exposure to new experiences that enhance their ability
to become responsible citizens.
[(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART X--SCHOOL OF VETERINARY MEDICINE COMPETITIVE GRANT PROGRAM
[SEC. 893. SCHOOL OF VETERINARY MEDICINE COMPETITIVE GRANT PROGRAM.
[(a) In General.--From the amounts appropriated under
subsection (g), the Secretary of Health and Human Services
shall award competitive grants to eligible entities for the
purpose of improving public health preparedness through
increasing the number of veterinarians in the workforce.
[(b) Eligible Entities.--To be eligible to receive a grant
under subsection (a), an entity shall--
[(1) be--
[(A) a public or other nonprofit school of
veterinary medicine that is accredited by a
nationally recognized accrediting agency or
association recognized by the Secretary of
Education pursuant to part H of title IV;
[(B) a public or nonprofit, department of
comparative medicine, department of veterinary
science, school of public health, or school of
medicine that is accredited by a nationally
recognized accrediting agency or association
recognized by the Secretary of Education
pursuant to part H of title IV and that offers
graduate training for veterinarians in a public
health practice area as determined by the
Secretary of Health and Human Services; or
[(C) a public or nonprofit entity that--
[(i) conducts recognized residency
training programs for veterinarians
that are approved by a veterinary
specialty organization that is
recognized by the American Veterinary
Medical Association; and
[(ii) offers postgraduate training
for veterinarians in a public health
practice area as determined by the
Secretary of Health and Human Services;
and
[(2) prepare and submit to the Secretary of Health
and Human Services an application, at such time, in
such manner, and containing such information as the
Secretary of Health and Human Services may require.
[(c) Consideration of Applications.--The Secretary of Health
and Human Services shall establish procedures to ensure that
applications under subsection (b)(2) are rigorously reviewed
and that grants are competitively awarded based on--
[(1) the ability of the applicant to increase the
number of veterinarians who are trained in specified
public health practice areas as determined by the
Secretary of Health and Human Services;
[(2) the ability of the applicant to increase
capacity in research on high priority disease agents;
or
[(3) any other consideration the Secretary of Health
and Human Services determines necessary.
[(d) Preference.--In awarding grants under subsection (a),
the Secretary of Health and Human Services shall give
preference to applicants that demonstrate a comprehensive
approach by involving more than one school of veterinary
medicine, department of comparative medicine, department of
veterinary science, school of public health, school of
medicine, or residency training program that offers
postgraduate training for veterinarians in a public health
practice area as determined by the Secretary of Health and
Human Services.
[(e) Use of Funds.--Amounts received under a grant under this
section shall be used by a grantee to increase the number of
veterinarians in the workforce through paying costs associated
with the expansion of academic programs at schools of
veterinary medicine, departments of comparative medicine,
departments of veterinary science, or entities offering
residency training programs, or academic programs that offer
postgraduate training for veterinarians or concurrent training
for veterinary students in specific areas of specialization,
which costs may include minor renovation and improvement in
classrooms, libraries, and laboratories.
[(f) Definition of Public Health Practice Area.--In this
section, the term ``public health practice area'' includes the
areas of bioterrorism and emergency preparedness, environmental
health, food safety and food security, regulatory medicine,
diagnostic laboratory medicine, and biomedical research.
[(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years. Amounts appropriated under this
subsection shall remain available until expended.
[PART Y--EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION PROGRAM
[SEC. 894. EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION PROGRAM.
[(a) Demonstration Program Authority.--
[(1) In general.--The Secretary is authorized to
carry out an Early Federal Pell Grant Commitment
Demonstration Program under which--
[(A) the Secretary awards grants to four
State educational agencies, in accordance with
paragraph (2), to pay the administrative
expenses incurred in participating in the
demonstration program under this section; and
[(B) the Secretary awards Federal Pell Grants
to participating students in accordance with
this section and consistent with section 401.
[(2) Grants.--
[(A) In general.--From amounts appropriated
under subsection (h) for a fiscal year, the
Secretary is authorized to award grants to four
State educational agencies to enable the State
educational agencies to pay the administrative
expenses incurred in participating in the
demonstration program under this section by
carrying out a demonstration project under
which eighth grade students described in
subsection (b)(1)(B) receive a commitment early
in the students' academic careers to receive a
Federal Pell Grant.
[(B) Equal amounts.--The Secretary shall
award grants under this section in equal
amounts to each of the four participating State
educational agencies.
[(b) Demonstration Project Requirements.--Each of the four
demonstration projects assisted under this section shall meet
the following requirements:
[(1) Participants.--
[(A) In general.--The State educational
agency shall make participation in the
demonstration project available to two cohorts
of students, which shall consist of--
[(i) one cohort of eighth grade
students who begin participating in the
first academic year for which funds
have been appropriated to carry out
this section; and
[(ii) one cohort of eighth grade
students who begin participating in the
academic year succeeding the academic
year described in clause (i).
[(B) Students in each cohort.--Each cohort of
students shall consist of not more than 10,000
eighth grade students who qualify for a free or
reduced price school lunch under the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.) or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.).
[(2) Student data.--The State educational agency
shall ensure that student data from local educational
agencies serving students who participate in the
demonstration project, as well as student data from
local educational agencies serving a comparable group
of students who do not participate in the demonstration
project, are available for evaluation of the
demonstration project, and are made available in
accordance with the requirements of section 444 of the
General Education Provisions Act (commonly known as the
``Family Educational Rights and Privacy Act of 1974'').
[(3) Federal pell grant commitment.--Each student who
participates in the demonstration project receives a
commitment from the Secretary to receive a Federal Pell
Grant during the first academic year that the student
is in attendance at an institution of higher education
as an undergraduate, provided that the student applies
for Federal financial aid (via the FAFSA or EZ FAFSA)
for such academic year.
[(4) Application process.--Each State educational
agency shall establish an application process to select
local educational agencies within the State to
participate in the demonstration project in accordance
with subsection (d)(2).
[(5) Local educational agency participation.--Subject
to the 10,000 statewide student limitation described in
paragraph (1), a local educational agency serving
students, not less than 50 percent of whom are eligible
for a free or reduced price school lunch under the
Richard B. Russell National School Lunch Act (42 U.S.C.
1751 et seq.) or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), shall be eligible to participate
in the demonstration project.
[(c) State Educational Agency Applications.--
[(1) In general.--Each State educational agency
desiring to participate in the demonstration program
under this section shall submit an application to the
Secretary at such time and in such manner as the
Secretary may require.
[(2) Contents.--Each application shall include--
[(A) a description of the proposed targeted
information campaign for the demonstration
project and a copy of the plan described in
subsection (f)(2);
[(B) a description of the student population
that will receive an early commitment to
receive a Federal Pell Grant under this
section;
[(C) an assurance that the State educational
agency will fully cooperate with the ongoing
evaluation of the demonstration project; and
[(D) such other information as the Secretary
may require.
[(d) Selection Considerations.--
[(1) Selection of state educational agencies.--In
selecting State educational agencies to participate in
the demonstration program under this section, the
Secretary shall consider--
[(A) the number and quality of State
educational agency applications received;
[(B) a State educational agency's--
[(i) financial responsibility;
[(ii) administrative capability;
[(iii) commitment to focusing
resources, in addition to any resources
provided on students who receive
assistance under part A of title I of
the Elementary and Secondary Education
Act of 1965;
[(iv) ability and plans to run an
effective and thorough targeted
information campaign for students
served by local educational agencies
eligible to participate in the
demonstration project; and
[(v) ability to ensure the
participation in the demonstration
project of a diverse group of students,
including with respect to ethnicity and
gender.
[(2) Local educational agency.--In selecting local
educational agencies to participate in a demonstration
project under this section, the State educational
agency shall consider--
[(A) the number and quality of local
educational agency applications received;
[(B) a local educational agency's--
[(i) financial responsibility;
[(ii) administrative capability;
[(iii) commitment to focusing
resources on students who receive
assistance under part A of title I of
the Elementary and Secondary Education
Act of 1965;
[(iv) ability and plans to run an
effective and thorough targeted
information campaign for students
served by the local educational agency;
and
[(v) ability to ensure the
participation in the demonstration
project of a diverse group of students.
[(e) Evaluation.--
[(1) In general.--From amounts appropriated under
subsection (h) for a fiscal year, the Secretary shall
reserve not more than $1,000,000 to award a grant or
contract to an organization outside the Department for
an independent evaluation of the impact of the
demonstration program assisted under this section.
[(2) Competitive basis.--The grant or contract shall
be awarded on a competitive basis.
[(3) Matters evaluated.--The evaluation described in
this subsection shall--
[(A) determine the number of students who
were encouraged by the demonstration program to
pursue higher education;
[(B) identify the barriers to the
effectiveness of the demonstration program;
[(C) assess the cost-effectiveness of the
demonstration program in improving access to
higher education;
[(D) identify the reasons why participants in
the demonstration program either received or
did not receive a Federal Pell Grant;
[(E) identify intermediate outcomes related
to postsecondary education attendance, such as
whether participants--
[(i) were more likely to take a
college-preparatory curriculum while in
secondary school;
[(ii) submitted any applications to
institutions of higher education; and
[(iii) took the PSAT, SAT, or ACT;
[(F) identify the number of students
participating in the demonstration program who
pursued an associate's degree or a bachelor's
degree, or other postsecondary education;
[(G) compare the findings of the
demonstration program with respect to
participants to comparison groups (of similar
size and demographics) that did not participate
in the demonstration program; and
[(H) identify the impact of the demonstration
program on the parents of students eligible to
participate in the program.
[(4) Dissemination.--The findings of the evaluation
shall be reported to the Secretary, who shall widely
disseminate the findings to the public.
[(f) Targeted Information Campaign.--
[(1) In general.--Each State educational agency
receiving a grant under this section shall, in
cooperation with the participating local educational
agencies within the State and the Secretary, develop a
targeted information campaign for the demonstration
project assisted under this section.
[(2) Plan.--Each State educational agency receiving a
grant under this section shall include in the
application submitted under subsection (c) a written
plan for the State educational agency proposed targeted
information campaign. The plan shall include the
following:
[(A) Outreach.--A description of the outreach
to students and the students' families at the
beginning and end of each academic year of the
demonstration project, at a minimum.
[(B) Distribution.--A description of how the
State educational agency plans to provide the
outreach described in subparagraph (A) and to
provide the information described in
subparagraph (C).
[(C) Information.--The annual provision by
the State educational agency to all students
and families participating in the demonstration
project of information regarding--
[(i) the estimated statewide average
cost of attendance for an institution
of higher education for each academic
year, which cost data shall be
disaggregated by--
[(I) type of institution,
including--
[(aa) two-year public
degree-granting
institutions of higher
education;
[(bb) four-year
public degree-granting
institutions of higher
education; and
[(cc) four-year
private degree-granting
institutions of higher
education;
[(II) component, including--
[(aa) tuition and
fees; and
[(bb) room and board;
[(ii) Federal Pell Grants,
including--
[(I) the Federal Pell Grant
amount, determined under
section 401(b)(2)(A), for which
a student may be eligible for
each award year;
[(II) when and how to apply
for a Federal Pell Grant; and
[(III) what the application
process for a Federal Pell
Grant requires;
[(iii) State-specific postsecondary
education savings programs;
[(iv) State merit-based financial
aid;
[(v) State need-based financial aid;
and
[(vi) Federal financial aid available
to students, including eligibility
criteria for such aid and an
explanation of the Federal financial
aid programs under title IV, such as
the Student Guide published by the
Department (or any successor to such
document).
[(3) Cohorts.--The information described in paragraph
(2)(C) shall be provided annually to the two successive
cohorts of students described in subsection (b)(1)(A)
for the duration of the students' participation in the
demonstration project.
[(4) Reservation.--Each State educational agency
receiving a grant under this section shall reserve not
more than 15 percent of the grant funds received each
fiscal year to carry out the targeted information
campaign described in this subsection.
[(g) Supplement, Not Supplant.--A State educational agency
shall use grant funds received under this section only to
supplement the funds that would, in the absence of such grant
funds, be made available from non-Federal sources for students
participating in the demonstration project under this section,
and not to supplant such funds.
[(h) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART Z--HENRY KUUALOHA GIUGNI KUPUNA MEMORIAL ARCHIVES
[SEC. 895. HENRY KUUALOHA GIUGNI KUPUNA MEMORIAL ARCHIVES.
[(a) Grants Authorized.--From the amounts appropriated under
subsection (c), the Secretary is authorized to award a grant to
the University of Hawaii Academy for Creative Media for the
establishment, maintenance, and periodic modernization of the
Henry Kuualoha Giugni Kupuna Memorial Archives at the
University of Hawaii.
[(b) Use of Funds.--The Henry Kuualoha Giugni Kupuna Memorial
Archives shall use the grant funds received under this
section--
[(1) to facilitate the acquisition of a secure web-
accessible repository of Native Hawaiian historical
data rich in ethnic and cultural significance to the
United States for preservation and access by future
generations;
[(2) to award scholarships to facilitate access to
postsecondary education for students who cannot afford
such education;
[(3) to support programmatic efforts associated with
the web-based media projects of the archives;
[(4) to create educational materials, from the
contents of the archives, that are applicable to a
broad range of indigenous students, such as Native
Hawaiians, Alaskan Natives, and Native American
Indians;
[(5) to develop outreach initiatives that introduce
the archival collections to elementary schools and
secondary schools;
[(6) to develop supplemental web-based resources that
define terms and cultural practices innate to Native
Hawaiians;
[(7) to rent, lease, purchase, maintain, or repair
educational facilities to house the archival
collections;
[(8) to rent, lease, purchase, maintain, or repair
computer equipment for use by elementary schools and
secondary schools in accessing the archival
collections;
[(9) to provide preservice and in-service teacher
training to develop a core group of kindergarten
through grade 12 teachers who are able to provide
instruction in a way that is relevant to the unique
background of indigenous students, such as Native
Hawaiians, Alaskan Natives, and Native American
Indians, in order to--
[(A) facilitate greater understanding by
teachers of the unique background of indigenous
students; and
[(B) improve student achievement; and
[(10) to increase the economic and financial literacy
of postsecondary education students through the
dissemination of best practices used at other
institutions of higher education regarding debt and
credit management and economic decisionmaking.
[(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.
[PART AA--MASTERS AND POSTBACCALAUREATE PROGRAMS
[SEC. 897. MASTERS DEGREE PROGRAMS.
[In addition to any amounts appropriated under section 725,
there are authorized to be appropriated, and there are
appropriated, out of any funds in the Treasury not otherwise
appropriated, $11,500,000 for fiscal year 2009 and for each of
the five succeeding fiscal years to carry out subpart 4 of part
A of title VII in order to provide grants under sections 723
and 724, in the minimum amount authorized under such sections,
to all institutions eligible for grants under such sections.
[SEC. 898. POSTBACCALAUREATE PROGRAMS.
[In addition to any amounts appropriated under part B of
title V, there are authorized to be appropriated, and there are
appropriated, out of any funds in the Treasury not otherwise
appropriated, $11,500,000 for fiscal year 2009 and for each of
the five succeeding fiscal years to carry out part B of title
V.]
----------
HIGHER EDUCATION OPPORTUNITY ACT
* * * * * * *
TITLE VIII--ADDITIONAL PROGRAMS
* * * * * * *
[SEC. 802. NATIONAL CENTER FOR RESEARCH IN ADVANCED INFORMATION AND
DIGITAL TECHNOLOGIES.
[(a) Establishment.--There shall be established, during the
first fiscal year for which appropriations are made available
under subsection (c), a nonprofit corporation to be known as
the National Center for Research in Advanced Information and
Digital Technologies, which shall not be an agency or
establishment of the Federal Government. The Center shall be
subject to the provisions of this section, and, to the extent
consistent with this section, to the District of Columbia
Nonprofit Corporation Act (sec. 29-501 et seq., D.C. Official
Code).
[(b) Purpose.--The purpose of the Center shall be to support
a comprehensive research and development program to harness the
increasing capacity of advanced information and digital
technologies to improve all levels of learning and education,
formal and informal, in order to provide Americans with the
knowledge and skills needed to compete in the global economy.
[(c) Funding.--
[(1) Authorization of appropriations.--There are
authorized to be appropriated to the Center such sums
as may be necessary for fiscal year 2009 and each of
the five succeeding fiscal years.
[(2) Additional funds.--The Center is authorized--
[(A) to accept funds from any Federal agency
or entity;
[(B) to accept, hold, administer, and spend
any gift, devise, or bequest of real or
personal property made to the Center; and
[(C) to enter into competitive contracts with
individuals, public or private organizations,
professional societies, and government agencies
for the purpose of carrying out the functions
of the Center.
[(3) Prohibition.--The Center shall not accept gifts,
devises, or bequests from a foreign government or
foreign source.
[(d) Board of Directors; Vacancies; Compensation.--
[(1) In general.--A Board of the Center shall be
established to oversee the administration of the
Center.
[(2) Initial composition.--The initial Board shall
consist of nine members to be appointed by the
Secretary of Education from recommendations received
from the Speaker of the House of Representatives, the
Minority Leader of the House of Representatives, the
majority leader of the Senate, and the minority leader
of the Senate, who--
[(A) reflect representation from the public
and private sectors;
[(B) shall provide, as nearly as practicable,
a broad representation of various regions of
the United States, various professions and
occupations, and various kinds of talent and
experience appropriate to the functions and
responsibilities of the Center;
[(C) shall not be in a position to benefit
financially directly from the contracts and
grants to eligible institutions under
subsection (f)(2); and
[(D) may not be officers or employees of the
Federal Government or a Members of Congress
serving at the time of such appointment.
[(3) Vacancies and subsequent appointments.--To the
extent not inconsistent with paragraph (2), in the case
of a vacancy on the Board due to death, resignation, or
removal, the vacancy shall be filled through nomination
and selection by the sitting members of the Board
after--
[(A) taking into consideration the
composition of the Board; and
[(B) soliciting recommendations from the
public.
[(4) Compensation.--Members of the Board shall serve
without compensation but may be reimbursed for
reasonable expenses for transportation, lodging, and
other expenses directly related to their duties as
members of the Board.
[(5) Organization and operation.--The Board shall
incorporate and operate the Center in accordance with
the laws governing tax exempt organizations in the
District of Columbia.
[(e) Director and Staff.--
[(1) Director.--The Board shall appoint a Director of
the Center after conducting a national, competitive
search to find an individual with the appropriate
expertise, experience, and knowledge to oversee the
operations of the Center.
[(2) Staff.--In accordance with procedures
established by the Board, the Director shall employ
individuals to carry out the functions of the Center.
[(3) Compensation.--In no case shall the Director or
any employee of the Center receive annual compensation
that exceeds an amount equal to the annual rate payable
for level II of the Executive Schedule under section
5313 of title 5, United States Code.
[(f) Center Activities.--
[(1) Uses of funds.--The Director, after consultation
with the Board, shall use the funds made available to
the Center--
[(A) to support research to improve
education, teaching, and learning that is in
the public interest, but that is determined
unlikely to be undertaken entirely with private
funds;
[(B) to support--
[(i) precompetitive research,
development, and demonstrations;
[(ii) assessments of prototypes of
innovative digital learning and
information technologies, as well as
the components and tools needed to
create such technologies; and
[(iii) pilot testing and evaluation
of prototype systems described in
clause (ii); and
[(C) to encourage the widespread adoption and
use of effective, innovative digital approaches
to improving education, teaching, and learning.
[(2) Contracts and grants.--
[(A) In general.--To carry out the activities
described in paragraph (1), the Director, with
the agreement of two-thirds of the members of
the Board, may award, on a competitive basis,
contracts and grants to four-year institutions
of higher education, museums, libraries,
nonprofit organizations, public institutions
with or without for-profit partners, for-profit
organizations, and consortia of any such
entities.
[(B) Public domain.--
[(i) In general.--The research and
development properties and materials
associated with any project funded by a
grant or contract under this section
shall be freely and nonexclusively
available to the general public in a
timely manner, consistent with
regulations prescribed by the Secretary
of Education.
[(ii) Exemption.--The Director may
waive the requirements of clause (i)
with respect to a project funded by a
grant or contract under this section
if--
[(I) the Director and the
Board (by a unanimous vote of
the Board members) determine
that the general public will
benefit significantly due to
the project not being freely
and nonexclusively available to
the general public in a timely
manner; and
[(II) the Board issues a
public statement as to the
specific reasons of the
determination under subclause
(I).
[(C) Peer review.--Proposals for grants or
contracts shall be evaluated on the basis of
comparative merit by panels of experts who
represent diverse interests and perspectives,
and who are appointed by the Director based on
recommendations from the fields served and from
the Board.
[(g) Accountability and Reporting.--
[(1) Report.--
[(A) In general.--Not later than December 30
of each year beginning in fiscal year 2009, the
Director shall prepare and submit to the
Secretary of Education and the authorizing
committees a report that contains the
information described in subparagraph (B) with
respect to the preceding fiscal year.
[(B) Contents.--A report under subparagraph
(A) shall include--
[(i) a comprehensive and detailed
report of the Center's operations,
activities, financial condition, and
accomplishments, and such
recommendations as the Director
determines appropriate;
[(ii) evidence of coordination with
the Department of Education, the
National Science Foundation, Office of
the Assistant Secretary of Defense for
Research and Engineering in the
Department of Defense, and other
related Federal agencies to carry out
the operations and activities of the
Center;
[(iii) a comprehensive and detailed
inventory of funds distributed from the
Center during the fiscal year for which
the report is being prepared; and
[(iv) an independent audit of the
Center's finances and operations, and
of the implementation of the goals
established by the Board.
[(C) Statement of the board.--Each report
under subparagraph (A) shall include a
statement from the Board containing--
[(i) a clear description of the plans
and priorities of the Board for the
subsequent year for activities of the
Center; and
[(ii) an estimate of the funds that
will be expended by the Center for such
year.
[(2) Testimony.--The Director and principal officers
of the Center shall testify before the authorizing
committees and the Committees on Appropriations of the
House of Representatives and the Senate, upon request
of such committees, with respect to--
[(A) any report required under paragraph
(1)(A); and
[(B) any other matter that such committees
may determine appropriate.
[(h) Use of Funds Subject to Appropriations.--The authority
to award grants, enter into contracts, or otherwise expend
funds under this section is subject to the availability of
amounts deposited into the Center under subsection (c), or
amounts otherwise appropriated for such purposes by an Act of
Congress.
[(i) Definitions.--For purposes of this section:
[(1) Authorizing committees.--The term ``authorizing
committees'' has the meaning given the term in section
103 of the Higher Education Act of 1965 (20 U.S.C.
1003).
[(2) Board.--The term ``Board'' means the Board of
the Center appointed under subsection (d)(1).
[(3) Center.--The term ``Center'' means the National
Center for Research in Advanced Information and Digital
Technologies established under subsection (a).
[(4) Director.--The term ``Director'' means the
Director of the Center appointed under subsection
(e)(1).
[SEC. 803. ESTABLISHMENT OF PILOT PROGRAM FOR COURSE MATERIAL RENTAL.
[(a) Pilot Grant Program.--From the amounts appropriated
pursuant to subsection (e), the Secretary of Education
(referred to in this section as the ``Secretary'') shall make
grants on a competitive basis to not more than ten institutions
of higher education to support pilot programs that expand the
services of bookstores to provide the option for students to
rent course materials in order to achieve savings for students.
[(b) Application.--An institution of higher education that
desires to obtain a grant under this section shall submit an
application to the Secretary at such time, in such form, and
containing or accompanied by such information, agreements, and
assurances as the Secretary may reasonably require.
[(c) Use of Funds.--The funds made available by a grant under
this section may be used for--
[(1) purchase of course materials that the entity
will make available by rent to students;
[(2) any equipment or software necessary for the
conduct of a rental program;
[(3) hiring staff needed for the conduct of a rental
program, with priority given to hiring enrolled
undergraduate students; and
[(4) building or acquiring extra storage space
dedicated to course materials for rent.
[(d) Evaluation and Report.--
[(1) Evaluations by recipients.--After a period of
time to be determined by the Secretary, each
institution of higher education that receives a grant
under this section shall submit a report to the
Secretary on the effectiveness of their rental programs
in reducing textbook costs for students.
[(2) Report to congress.--Not later than September
30, 2010, the Secretary shall submit a report to
Congress on the effectiveness of the textbook rental
pilot programs under this section, and identify the
best practices developed in such pilot programs. Such
report shall contain an estimate by the Secretary of
the savings achieved by students who participate in
such pilot programs.
[(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal years 2009 and 2010.]
* * * * * * *
----------
HIGHER EDUCATION AMENDMENTS OF 1998
* * * * * * *
[TITLE VIII--STUDIES, REPORTS, AND RELATED PROGRAMS
* * * * * * *
[PART D--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED YOUTH OFFENDERS
[SEC. 821. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED INDIVIDUALS.
[(a) Definition.--In this section, the term ``incarcerated
individual'' means a male or female offender who is--
[(1) 35 years of age or younger; and
[(2) incarcerated in a State prison, including a
prerelease facility.
[(b) Grant Program.--The Secretary of Education (in this
section referred to as the ``Secretary'')--
[(1) shall establish a program in accordance with
this section to provide grants to the State
correctional education agencies in the States to assist
and encourage incarcerated individuals who have
obtained a secondary school diploma or its recognized
equivalent to acquire educational and job skills
through--
[(A) coursework to prepare such individuals
to pursue a postsecondary education
certificate, an associate's degree, or
bachelor's degree while in prison;
[(B) the pursuit of a postsecondary education
certificate, an associate's degree, or
bachelor's degree while in prison; and
[(C) employment counseling and other related
services, which start during incarceration and
end not later than two years after release from
incarceration; and
[(2) may establish such performance objectives and
reporting requirements for State correctional education
agencies receiving grants under this section as the
Secretary determines are necessary to assess the
effectiveness of the program under this section.
[(c) Application.--To be eligible for a grant under this
section, a State correctional education agency shall submit to
the Secretary a proposal for an incarcerated individual program
that--
[(1) identifies the scope of the problem, including
the number of incarcerated individuals in need of
postsecondary education and career and technical
training;
[(2) lists the accredited public or private
educational institution or institutions that will
provide postsecondary educational services;
[(3) lists the cooperating agencies, public and
private, or businesses that will provide related
services, such as counseling in the areas of career
development, substance abuse, health, and parenting
skills;
[(4) describes specific performance objectives and
evaluation methods (in addition to, and consistent
with, any objectives established by the Secretary under
subsection (b)(2)) that the State correctional
education agency will use in carrying out its proposal,
including--
[(A) specific and quantified student outcome
measures that are referenced to outcomes for
non-program participants with similar
demographic characteristics; and
[(B) measures, consistent with the data
elements and definitions described in
subsection (d)(1)(A), of--
[(i) program completion, including an
explicit definition of what constitutes
a program completion within the
proposal;
[(ii) knowledge and skill attainment,
including specification of instruments
that will measure knowledge and skill
attainment;
[(iii) attainment of employment both
prior to and subsequent to release;
[(iv) success in employment indicated
by job retention and advancement; and
[(v) recidivism, including such
subindicators as time before subsequent
offense and severity of offense;
[(5) describes how the proposed program is to be
integrated with existing State correctional education
programs (such as adult education, graduate education
degree programs, and career and technical training) and
State industry programs;
[(6) describes how the proposed program will--
[(A) deliver services under this section; and
[(B) utilize technology to deliver such
services; and
[(7) describes how incarcerated individuals will be
selected so that only those eligible under subsection
(e) will be enrolled in postsecondary programs.
[(d) Program Requirements.--Each State correctional education
agency receiving a grant under this section shall--
[(1) annually report to the Secretary regarding--
[(A) the results of the evaluations conducted
using data elements and definitions provided by
the Secretary for the use of State correctional
education programs;
[(B) any objectives or requirements
established by the Secretary pursuant to
subsection (b)(2);
[(C) the additional performance objectives
and evaluation methods contained in the
proposal described in subsection (c)(4) as
necessary to document the attainment of project
performance objectives;
[(D) how the funds provided under this
section are being allocated among postsecondary
preparatory education, postsecondary academic
programs, and career and technical education
programs; and
[(E) the service delivery methods being used
for each course offering; and
[(2) provide for each student eligible under
subsection (e) not more than--
[(A) $3,000 annually for tuition, books, and
essential materials; and
[(B) $300 annually for related services such
as career development, substance abuse
counseling, parenting skills training, and
health education.
[(e) Student Eligibility.--An incarcerated individual who has
obtained a secondary school diploma or its recognized
equivalent shall be eligible for participation in a program
receiving a grant under this section if such individual--
[(1) is eligible to be released within seven years
(including an incarcerated individual who is eligible
for parole within such time);
[(2) is 35 years of age or younger; and
[(3) has not been convicted of--
[(A) a ``criminal offense against a victim
who is a minor'' or a ``sexually violent
offense'', as such terms are defined in the
Jacob Wetterling Crimes Against Children and
Sexually Violent Offender Registration Act (42
U.S.C. 14071 et seq.); or
[(B) murder, as described insection 1111of
title 18, United States Code.
[(f) Length of Participation.--A State correctional education
agency receiving a grant under this section shall provide
educational and related services to each participating
incarcerated individual for a period not to exceed seven years,
not more than two years of which may be devoted to study in a
graduate education degree program or to coursework to prepare
such individuals to take college level courses. Educational and
related services shall start during the period of incarceration
in prison or prerelease, and the related services may continue
for not more than two years after release from confinement.
[(g) Education Delivery Systems.--State correctional
education agencies and cooperating institutions shall, to the
extent practicable, use high-tech applications in developing
programs to meet the requirements and goals of this section.
[(h) Allocation of Funds.--
[(1) Fiscal year 2009.--From the funds appropriated
pursuant to subsection (i) for fiscal year 2009, the
Secretary shall allot to each State an amount that
bears the same relationship to such funds as the total
number of incarcerated individuals described in
paragraphs (1) and (2) of subsection (e) in the State
bears to the total number of such individuals in all
States.
[(2) Future fiscal years.--From the funds
appropriated pursuant to subsection (i) for each fiscal
year after fiscal year 2009, the Secretary shall allot
to each State an amount that bears the same
relationship to such funds as the total number of
students eligible under subsection (e) in such State
bears to the total number of such students in all
States.
[(i) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal years 2009 through 2014.
* * * * * * *
[PART H--UNDERGROUND RAILROAD
[SEC. 841. UNDERGROUND RAILROAD EDUCATIONAL AND CULTURAL PROGRAM.
[(a) Program Established.--The Secretary of Education, in
consultation and cooperation with the Secretary of the
Interior, is authorized to make grants to 1 or more nonprofit
educational organizations that are established to research,
display, interpret, and collect artifacts relating to the
history of the Underground Railroad, including the lessons to
be drawn from such history.
[(b) Grant Agreement.--Each nonprofit educational
organization awarded a grant under this section shall enter
into an agreement with the Secretary of Education. Each such
agreement shall require the organization--
[(1) to establish a facility to--
[(A) house, display, interpret, and
communicate information regarding the artifacts
and other materials related to the history of
the Underground Railroad, including the lessons
to be drawn from such history;
[(B) maintain such artifacts and materials;
and
[(C) make the efforts described in
subparagraph (A) available, including through
electronic means, to elementary and secondary
schools, institutions of higher education, and
the general public;
[(2) to demonstrate substantial public and private
support for the operation of the facility through the
implementation of a public-private partnership between
one or more State or local public entities and one or
more private entities, which public-private partnership
shall provide matching funds from non-federal sources
for the support of the facility in an amount equal to
or greater than four times the amount of the grant
awarded under this section;
[(3) to create an endowment to fund any and all
shortfalls in the costs of the on-going operations of
the facility;
[(4) to establish and maintain a network of satellite
centers throughout the United States to help
disseminate information regarding the Underground
Railroad throughout the United States, including the
lessons to be drawn from the history of the Underground
Railroad, if such satellite centers raise 80 percent of
the funds required to establish the satellite centers
from non-Federal public and private sources;
[(5) to establish and maintain the capability to
electronically link the facility with other local and
regional facilities that have collections and programs
which interpret the history of the Underground
Railroad, including the lessons to be drawn from such
history; and
[(6) to submit, for each fiscal year for which the
organization receives funding under this section, a
report to the Secretary of Education that contains--
[(A) a description of the programs and
activities supported by the funding;
[(B) the audited financial statement of the
organization for the preceding fiscal year;
[(C) a plan for the programs and activities
to be supported by the funding as the Secretary
may require; and
[(D) an evaluation of the programs and
activities supported by the funding as the
Secretary may require.
[(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $3,000,000 for
fiscal year 2009 and each of the five succeeding fiscal years.]
* * * * * * *
----------
HIGHER EDUCATION AMENDMENTS OF 1992
* * * * * * *
TITLE XV--RELATED PROGRAMS AND AMENDMENTS TO OTHER LAWS
* * * * * * *
[PART E--OLYMPIC SCHOLARSHIPS
[SEC. 1543. OLYMPIC SCHOLARSHIPS.
[(a) Scholarships Authorized.--
[(1) In general.--The Secretary of Education is
authorized to provide financial assistance to the
United States Olympic Education Center or the United
States Olympic Training Center to enable such centers
to provide financial assistance to athletes who are
training at such centers and are pursuing postsecondary
education at institutions of higher education (as such
term is defined in section 481(a) of the Higher
Education Act of 1965).
[(2) Award determination.--The amount of the
financial assistance provided to an athlete described
in paragraph (1) shall be determined in accordance with
criteria, and in amounts, specified in the application
of the center under subsection (c). Such assistance
shall not exceed the athlete's cost of attendance as
determined under section 472 of the Higher Education
Act of 1965 (20 U.S.C. 1087ll).
[(3) Information on distribution of assistance.--Each
center providing such assistance shall annually report
to the Secretary such information as the Secretary may
reasonably require on the distribution of such
assistance among athletes and institutions of higher
education. The Secretary shall compile such reports and
submit them to the Committees on Education and the
Workforce and Appropriations of the House of
Representatives and the Committees on Health,
Education, Labor, and Pensions and Appropriations of
the Senate.
[(b) Eligibility.--The Secretary of Education shall ensure
that financial assistance provided under this part is available
to both full-time and part-time students who are athletes at
centers described in subsection (a).
[(c) Application.--Each center desiring financial assistance
under this section shall submit an application to the Secretary
of Education at such time, in such manner and accompanied by
such information as the Secretary may reasonably require.
[(d) Authorization of Appropriations.--There are authorized
to be appropriated $5,000,000 for fiscal year 2009 and such
sums as may be necessary for each of the five succeeding fiscal
years to carry out this section.
[(e) Designation.--Scholarships awarded under this section
shall be known as ``B.J. Stupak Olympic Scholarships''.]
* * * * * * *
----------
EDUCATION OF THE DEAF ACT OF 1986
* * * * * * *
TITLE I--GALLAUDET UNIVERSITY; NATIONAL TECHNICAL INSTITUTE FOR THE
DEAF; OTHER PROGRAMS
Part A--Gallaudet University
* * * * * * *
SEC. 103. BOARD OF TRUSTEES.
(a) Composition of the Board.--(1) Gallaudet University shall
be under the direction and control of a Board of Trustees,
composed of [twenty-one] twenty-three members who shall
include--
(A) [three public] four public members of whom (i)
[one shall be a United States Senator appointed by the
President of the Senate, and] two shall be United
States Senators, of whom one shall be appointed by the
Majority Leader of the Senate and one shall be
appointed by the Minority Leader of the Senate, and
(ii) two shall be Representatives [appointed by the
Speaker of the House of Representatives], of whom one
shall be appointed by the Speaker of the House of
Representatives and one shall be appointed by the
Minority Leader of the House of Representatives; and
(B) [eighteen] nineteen other members, all of whom
shall be elected by the Board of Trustees and of whom
one shall be elected pursuant to regulations of the
Board of Trustees, on nomination by the Gallaudet
University Alumni Association, for a term of three
years.
(2) The members appointed from the Senate and House of
Representatives shall be appointed for a term of two years at
the beginning of each Congress, shall be eligible for
reappointment, and shall serve until their successors are
appointed.
(3) The Board of Trustees shall have the power to fill any
vacancy in the membership of the Board except for public
members. Nine trustees shall constitute a quorum to transact
business. The Board of Trustees, by vote of a majority of its
membership, is authorized to remove any member of their body
(except the public members) who may refuse or neglect to
discharge the duties of a trustee, or whose removal would, in
the judgment of said majority, be to the interest and welfare
of said corporation.
(b) Powers of the Board.--The Board of Trustees is authorized
to--
(1) make such rules, policies, regulations, and
bylaws, not inconsistent with the Constitution and laws
of the United States, as may be necessary for the good
government of Gallaudet University, for the management
of the property and funds of such corporation
(including the construction of buildings and other
facilities), and for the admission, instruction, care,
and discharge of students;
(2) provide for the adoption of a corporate seal and
for its use;
(3) fix the date of holding their annual and other
meetings;
(4) appoint a president and establish policies,
guidelines, and procedures related to the appointments,
the salaries, and the dismissals of professors,
instructors, and other employees of Gallaudet
University, including the adoption of a policy of
outreach and recruitment to employ and advance in
employment qualified individuals with disabilities,
particularly individuals who are deaf or hard of
hearing;
(5) elect a chairperson and other officers and
prescribe their duties and terms of office, and appoint
an executive committee to consist of five members, and
vest the committee with such of its powers during
periods between meetings of the Board as the Board
deems necessary;
(6) establish such schools, departments, and other
units as the Board of Trustees deems necessary to carry
out the purpose of Gallaudet University;
(7) confer such degrees and marks of honor as are
conferred by colleges and universities generally, and
issue such diplomas and certificates of graduation as,
in its opinion, may be deemed advisable, and consistent
with academic standards;
(8) subject to section 203, control expenditures of
all moneys appropriated by Congress for the benefit of
Gallaudet University; and
(9) control the expenditure and investment of any
moneys or funds or property which Gallaudet University
may have or may receive from sources other than
appropriations by Congress.
SEC. 104. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.
(a) General Authority.--(1)(A) The Board of Trustees of
Gallaudet University is authorized, in accordance with the
agreement under section 105, to maintain and operate the
Laurent Clerc National Deaf Education Center (referred to in
this section as the ``Clerc Center'') to carry out exemplary
elementary and secondary education programs, projects, and
activities for the primary purpose of developing, evaluating,
and disseminating innovative curricula, instructional
techniques and strategies, and materials that can be used in
various educational environments serving individuals who are
deaf or hard of hearing throughout the Nation.
(B) The elementary and secondary education programs described
in subparagraph (A) shall serve students with a broad spectrum
of needs, including students who are lower achieving
academically, who come from non-English-speaking homes, who
have secondary disabilities, who are members of minority
groups, or who are from rural areas.
(C) The elementary and secondary education programs described
in subparagraph (A) shall include--
(i) the Kendall Demonstration Elementary School, to
provide day facilities for elementary education for
students who are deaf from the age of onset of deafness
to age fifteen, inclusive, but not beyond the eighth
grade or its equivalent, to provide such students with
the vocational, transitional, independent living, and
related services they need to function independently,
and to prepare such students for high school and other
secondary study; and
(ii) the Model Secondary School for the Deaf, to
provide day and residential facilities for secondary
education for students who are deaf from grades nine
through twelve, inclusive, to provide such students
with the vocational, transitional, independent living,
and related services they need to function
independently, and to prepare such students for
college, other postsecondary opportunities, or the
workplace.
(2) The Model Secondary School for the Deaf may provide
residential facilities for students enrolled in the school--
(A) who live beyond a reasonable commuting distance
from the school; or
(B) for whom such residency is necessary for them to
receive a free appropriate public education within the
meaning of part B of the Individuals with Disabilities
Education Act.
(b) Administrative Requirements.--(1) The Clerc Center
shall--
(A) provide technical assistance and outreach
throughout the Nation to meet the training and
information needs of parents of infants, children, and
youth who are deaf or hard of hearing; and
(B) provide technical assistance and training to
personnel for use in teaching (i) students who are deaf
or hard of hearing, in various educational
environments, and (ii) students who are deaf or hard of
hearing with a broad spectrum of needs as described in
subsection (a).
(2) To the extent possible, the Clerc Center shall provide
the services required under paragraph (1)(B) in an equitable
manner, based on the national distribution of students who are
deaf or hard of hearing in educational environments as
determined by the Secretary for purposes of section 618(a)(1)
of the Individuals with Disabilities Education Act. Such
educational environments shall include--
(A) regular classes;
(B) resource rooms;
(C) separate classes;
(D) separate, public or private, nonresidential
schools; and
(E) separate, public or private, residential schools
and homebound or hospital environments.
(3) If a local educational agency, educational service
agency, or State educational agency refers a child to, or
places a child in, one of the elementary or secondary education
programs to meet its obligation to make available a free
appropriate public education under part B of the Individuals
with Disabilities Education Act, the agency or unit shall be
responsible for ensuring that the special education and related
services provided to the child by the education program are in
accordance with part B of that Act and that the child is
provided the rights and procedural safeguards under section 615
of that Act.
(4) If the parents or guardian places a child in one of the
elementary or secondary education programs, the University
shall--
(A) notify the appropriate local educational agency,
educational service agency, or State educational agency
of that child's attendance in the program;
(B) work with local educational agencies, educational
service agencies, and State educational agencies, where
appropriate, to ensure a smooth transfer of the child
to and from that program; and
(C) provide the child a free appropriate public
education in accordance with part B of the Individuals
with Disabilities Education Act and procedural
safeguards in accordance with the following provisions
of section 615 of such Act:
(i) Paragraphs (1), and (3) through (8) of
subsection (b).
(ii) Subsections (c) through (g).
(iii) Subsection (h), except for the matter
in paragraph (4) pertaining to transmission of
findings and decisions to a State advisory
panel.
(iv) Paragraphs (1) and (2) of subsection
(i).
(v) Subsection (j)--
(I) except that such subsection shall
not be applicable to a decision by the
University to refuse to admit a child;
or
(II) to dismiss a child, except that,
before dismissing any child, the
University shall give at least 60 days
written notice to the child's parents
and to the local educational agency in
which the child resides, unless the
dismissal involves a suspension,
expulsion, or other change in placement
covered under section 615(k).
(vi) Subsections (k) through (o).
[(5) The University, for purposes of the elementary and
secondary education programs carried out at the Clerc Center,
shall--
[(A)(i) select challenging State academic content
standards, aligned academic achievement standards, and
State academic assessments of a State, adopted and
implemented, as appropriate, pursuant to paragraphs (1)
and (2) of section 1111(b) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311(b)(1)
and (2)) and approved by the Secretary; and
[(ii) implement such standards and assessments for
such programs by not later than the beginning of the
2016-2017 academic year;
[(B) adopt the accountability system, consistent with
section 1111(c) of such Act, of the State from which
standards and assessments are selected under
subparagraph (A)(i); and
[(C) publicly report the results of the academic
assessments implemented under subparagraph (A), except
where such reporting would not yield statistically
reliable information or would reveal personally
identifiable information about an individual student,
and the results of the annual evaluation of the
programs at the Clerc Center, as determined under
subparagraph (B).]
(5) The University, for purposes of the elementary
and secondary education programs carried out by the
Clerc Center, shall--
(A)(i)(I) provide an assurance to the
Secretary that it has adopted and is
implementing challenging State academic
standards that meet the requirements of section
1111(b)(1) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(b)(1));
(II) demonstrate to the Secretary that the
University is implementing a set of high-
quality student academic assessments in
mathematics, reading or language arts, and
science, and any other subjects chosen by the
University, that meet the requirements of
section 1111(b)(2) of such Act (20 U.S.C.
6311(b)(2)); and
(III) demonstrate to the Secretary that the
University is implementing an accountability
system consistent with section 1111(c) of such
Act (20 U.S.C. 6311(c)); or
(ii)(I) select the challenging State academic
standards and State academic assessments of a
State, adopted and implemented, as appropriate,
pursuant to paragraphs (1) and (2) of section
1111(b) of such Act (20 U.S.C. 6311(b)); and
(II) adopt the accountability system,
consistent with section 1111(c) of such Act (20
U.S.C. 6311(c)), of such State; and
(B) publicly report, except in a case in
which such reporting would not yield
statistically reliable information or would
reveal personally identifiable information
about an individual student--
(i) the results of the academic
assessments implemented under
subparagraph (A); and
(ii) the results of the annual
evaluation of the programs at the Clerc
Center, as determined using the
accountability system adopted under
subparagraph (A).
* * * * * * *
Part B--National Technical Institute for the Deaf
* * * * * * *
SEC. 112. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
(a) General Authority.--(1) The Secretary is authorized to
establish or continue an agreement with an institution of
higher education for the establishment and operation, including
construction and equipment, of a National Technical Institute
for the Deaf.
(2) The Secretary and the institution of higher education
with which the Secretary has an agreement under this section--
(A) shall periodically assess the need for
modification of the agreement; and
(B) shall periodically update the agreement as
determined necessary by the Secretary or the
institution.
(b) Provisions of Agreement.--The agreement shall--
(1) provide that Federal funds appropriated for the
benefit of NTID will be used only for the purposes for
which appropriated and in accordance with the
applicable provisions of this Act and the agreement
made pursuant thereto;
(2) provide that the Board of Trustees or other
governing body of the institution, subject to the
approval of the Secretary, will appoint an advisory
group to advise the Director of NTID in formulating and
carrying out the basic policies governing its
establishment and operation, which group shall include
individuals who are professionally concerned with
education and technical training at the postsecondary
school level, persons who are professionally concerned
with activities relating to education and training of
individuals who are deaf, and members of the public
familiar with the need for services provided by NTID;
(3) provide that the Board of Trustees or other
governing body of the institution will prepare and
submit to the Secretary, not later than June 1
following the fiscal year for which the report is
submitted, an annual report containing an accounting of
all indirect costs paid to the institution of higher
education under the agreement with the Secretary, which
accounting the Secretary shall transmit to the
Committee on [Education and Labor] Education and the
Workforce of the House of Representatives and to the
Committee on Health, Education, Labor, and Pensions of
the Senate, with such comments and recommendations as
the Secretary may deem appropriate;
(4) include such other conditions as the Secretary
deems necessary to carry out the purposes of this part;
(5) provide that any laborer or mechanic employed by
any contractor or subcontractor in the performance of
work on any construction aided by Federal funds
appropriated for the benefit of NTID will be paid wages
at rates not less than those prevailing on similar
construction in the locality as determined by the
Secretary of Labor in accordance with subchapter IV of
chapter 31 of title 40, United States Code, commonly
referred to as the Davis-Bacon Act; except that the
Secretary of Labor shall have, with respect to the
labor standards specified in this paragraph, the
authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (5 U.S.C. App.) and section
3145 of title 40, United States Code; and
(6) establish a policy of outreach and recruitment to
employ and advance in employment qualified individuals
with disabilities, particularly individuals who are
deaf or hard of hearing.
(c) Limitation.--If, within twenty years after the completion
of any construction (except minor remodeling or alteration) for
which such funds have been paid--
(1) the facility ceases to be used for the purposes
for which it was constructed or the agreement is
terminated, unless the Secretary determines that there
is good cause for releasing the institution from its
obligation, or
(2) the institution ceases to be the owner of the
facility,
the United States shall be entitled to recover from the
applicant or other owner of the facility an amount which has
the same ratio with respect to the current market value of the
facility as the amount of Federal funds expended for
construction of such facility bears to the total cost of
construction of the facility. The current market value of the
facility shall be determined by agreement of the parties or by
action brought in the United States district court for the
district in which the facility is situated.
[PART C--OTHER PROGRAMS
[SEC. 121. CULTURAL EXPERIENCES GRANTS.
[(a) In General.--The Secretary is authorized to, on a
competitive basis, make grants to, and enter into contracts and
cooperative agreements with, eligible entities to support the
activities described in subsection (b).
[(b) Activities.--In carrying out this section, the Secretary
shall support activities providing cultural experiences,
through appropriate nonprofit organizations with a demonstrated
proficiency in providing such activities, that--
[(1) enrich the lives of deaf and hard-of-hearing
children and adults;
[(2) increase public awareness and understanding of
deafness and of the artistic and intellectual
achievements of deaf and hard-of-hearing persons; or
[(3) promote the integration of hearing, deaf, and
hard-of-hearing persons through shared cultural,
educational, and social experiences.
[(c) Applications.--An eligible entity that desires to
receive a grant, or enter into a contract or cooperative
agreement, under this section shall submit an application to
the Secretary at such time, in such manner, and containing such
information as the Secretary may require.
[(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.]
TITLE II--GENERAL PROVISIONS
* * * * * * *
SEC. 203. AUDIT.
(a) [General Accounting] Government Accountability Office
Authority.--All financial transactions and accounts of the
corporation or institution of higher education, as the case may
be, in connection with the expenditure of any moneys
appropriated by any law of the United States--
(1) for the benefit of Gallaudet University or for
the construction of facilities for its use; or
(2) for the benefit of the National Technical
Institute for the Deaf or for the construction of
facilities for its use,
shall be settled and adjusted in the [General Accounting]
Government Accountability Office.
(b) Independent Financial and Compliance Audit.--
(1) In general.--Gallaudet University shall have an
annual independent financial and compliance audit made
of the programs and activities of the University,
including the national mission and school operations of
the elementary and secondary education programs at
Gallaudet. The institution of higher education with
which the Secretary has an agreement under section 112
shall have an annual independent financial and
compliance audit made of the programs and activities of
such institution of higher education, including NTID,
and containing specific schedules and analyses for all
NTID funds, as determined by the Secretary.
(2) Compliance.--As used in paragraph (1), compliance
means compliance with sections 102(b), 105(b)(4),
112(b)(5), 203(c), 207(b)(2), subsections (c) through
(f) of section 207, and subsections (a), (b), and (c)
of section 209.
(3) Submission of audits.--A copy of each audit
described in paragraph (1) shall be provided to the
Secretary and the Committee on [Education and Labor]
Education and the Workforce of the House of
Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate within 15 days of
acceptance of the audit by the University or the
institution authorized to establish and operate the
NTID under section 112(a), as the case may be, but not
later than January 10 of each year.
(c) Limitations Regarding Expenditure of Funds.--
(1) In general.--No funds appropriated under this Act
for Gallaudet University, including the Kendall
Demonstration Elementary School and the Model Secondary
School for the Deaf, or for the National Technical
Institute for the Deaf may be expended on the
following:
(A) Alcoholic beverages.
(B) Goods or services for personal use.
(C) Housing and personal living expenses (but
only to the extent such expenses are not
required by written employment agreement).
(D) Lobbying, except that nothing in this
subparagraph shall be construed to prohibit the
University and NTID from educating the
Congress, the Secretary, and others regarding
programs, projects, and activities conducted at
those institutions.
(E) Membership in country clubs and social or
dining clubs and organizations.
(2) Policies.--
(A) Not later than 180 days after the date of
the enactment of the Education of the Deaf Act
Amendments of 1992, the University and NTID
shall develop policies, to be applied
uniformly, for the allowability of expenditures
for each institution. These policies should
reflect the unique nature of these
institutions. The principles established by the
Office of Management and Budget for costs of
educational institutions may be used as
guidance in developing these policies. General
principles relating to allowability and
reasonableness of all costs associated with the
operations of the institutions shall be
addressed. These policies shall be submitted to
the Secretary for review and comments, and to
the Committee on [Education and Labor]
Education and the Workforce of the House of
Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate.
(B) Policies under subparagraph (A) shall
include the following:
(i) Noninstitutional professional
activities.
(ii) Fringe benefits.
(iii) Interest on loans.
(iv) Rental cost of buildings and
equipment.
(v) Sabbatical leave.
(vi) Severance pay.
(vii) Travel.
(viii) Royalties and other costs for
uses of patents.
(C) The Secretary is not authorized to add
items to those specified in subparagraph (B).
SEC. 204. REPORTS.
The Board of Trustees of Gallaudet University and the Board
of Trustees or other governing body of the institution of
higher education with which the Secretary has an agreement
under section 112 shall prepare and submit an annual report to
the Secretary, and to the Committee on [Education and Labor]
Education and the Workforce of the House of Representatives and
the Committee on Health, Education, Labor, and Pensions of the
Senate, not later than 100 days after the end of each fiscal
year, which shall include the following:
(1) The number of students during the preceding
academic year who enrolled and whether these were
first-time enrollments, who graduated, who found
employment, or who left without completing a program of
study, reported under each of the programs of the
University (elementary, secondary, undergraduate, and
graduate) and of NTID.
(2) For the preceding academic year, and to the
extent possible, the following data on individuals who
are deaf and from minority backgrounds and who are
students (at all educational levels) or employees:
(A) The number of students enrolled full- and
part-time.
(B) The number of these students who
completed or graduated from each of the
educational programs.
(C) The disposition of these students on the
date that is one year after the date of
graduation or completion of programs at NTID
and at the University and its elementary and
secondary schools in comparison to students
from non-minority backgrounds.
(D) The number of students needing and
receiving support services (such as tutoring
and counseling) at all educational levels.
(E) The number of recruitment activities by
type and location for all educational levels.
(F) Employment openings/vacancies and grade
level/type of job and number of these
individuals that applied and that were hired.
(G) Strategies (such as parent groups and
training classes in the development of
individualized education programs) used by the
elementary and secondary programs and the
extension centers to reach and actively involve
minority parents in the educational programs of
their children who are deaf or hard of hearing
and the number of parents who have been served
as a result of these activities.
(3)(A) A summary of the annual audited financial
statements and auditor's report of the University, as
required under section 203, and (B) a summary of the
annual audited financial statements and auditor's
report of NTID programs and activities, and such
supplementary schedules presenting financial
information for NTID for the end of the Federal fiscal
year as determined by the Secretary.
(4) For the preceding fiscal year, a statement
showing the receipts of the University and NTID and
from what Federal sources, and a statement showing the
expenditures of each institution by function, activity,
and administrative and academic unit.
(5) A statement showing the use of funds (both corpus
and income) provided by the Federal Endowment Program
under section 207.
(6) A statement showing how such Endowment Program
funds are invested, what the gains or losses (both
realized and unrealized) on such investments were for
the most recent fiscal year, and what changes were made
in investments during that year.
(7) Such additional information as the Secretary may
consider necessary.
SEC. 205. MONITORING, EVALUATION, AND REPORTING.
(a) Activities.--The Secretary shall conduct monitoring and
evaluation activities of the education programs and activities
and the administrative operations of the University (including
the elementary, secondary, undergraduate, and graduate
programs) and of NTID. The Secretary may also conduct studies
related to the provision of preschool, elementary, secondary,
and postsecondary education and other related services to
individuals who are deaf or hard of hearing. In carrying out
the responsibilities described in this section, the Secretary
is authorized to employ such consultants as may be necessary
pursuant to section 3109 of title 5, United States Code.
(b) Report.--The Secretary shall annually transmit
information to Congress on the monitoring and evaluation
activities pursuant to subsection (a), together with such
recommendations, including recommendations for legislation, as
the Secretary may consider necessary.
[(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary for each of
the fiscal years 2009 through 2014 to carry out the monitoring
and evaluation activities authorized under this section.]
* * * * * * *
SEC. 207. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
(a) Establishment of Programs.--
(1) The Secretary and the Board of Trustees of
Gallaudet University are authorized to establish the
Gallaudet University Federal Endowment Fund as a
permanent endowment fund, in accordance with this
section, for the purpose of promoting the financial
independence of the University. The Secretary and the
Board of Trustees may enter into such agreements as may
be necessary to carry out the purposes of this section
with respect to the University.
(2) The Secretary and the Board of Trustees or other
governing body of the institution of higher education
with which the Secretary has an agreement under section
112 are authorized to establish the National Technical
Institute for the Deaf Federal Endowment Fund as a
permanent endowment fund, in accordance with this
section, for the purpose of promoting the financial
independence of NTID. The Secretary and the Board or
other governing body may enter into such agreements as
may be necessary to carry out the purposes of this
section with respect to NTID.
(b) [Federal Payments] Payments.--
[(1) The Secretary shall, consistent with this
section, make payments to the Federal endowment funds
established under subsection (a) from amounts
appropriated under subsection (h) for the fund
involved.
[(2) Subject to the availability of appropriations, the
Secretary shall make payments to each Federal endowment fund in
amounts equal to sums contributed to the fund from non-Federal
sources during the fiscal year in which the appropriations are
made available (excluding transfers from other endowment funds
of the institution involved).]
(1) From amounts provided by the Secretary from funds
appropriated under subsections (a) and (b) of section
212, respectively, the University and NTID may make
payments, in accordance with this section, to the
Federal endowment fund of the institution involved.
(2) Subject to paragraph (3), in any fiscal year, the
total amount of payments made under paragraph (1) to
the Federal endowment fund may not exceed the total
amount contributed to the fund from non-Federal sources
during such fiscal year.
(3) For purposes of paragraph (2), the transfer of
funds by an institution involved to the Federal
endowment fund from another endowment fund of such
institution shall not be considered a contribution from
a non-Federal source.
(c) Investments.--
(1) Except as provided in subsection (e), the
University and NTID, respectively, shall invest the
Federal contribution of its Federal endowment fund
corpus and income in instruments and securities offered
through one or more cooperative service organizations
of operating educational organizations under section
501(f) of the Internal Revenue Code of 1986, or in low-
risk instruments and securities in which a regulated
insurance company may invest under the laws of the
State in which the institution involved is located.
(2) In managing the investment of its Federal
endowment fund, the University or NTID shall exercise
the judgment and care, under the prevailing
circumstances, that a person of prudence, discretion,
and intelligence would exercise in the management of
that person's own business affairs.
(3) Neither the University nor NTID may invest its
Federal endowment fund corpus or income in real estate,
or in instruments or securities issued by an
organization in which an executive officer, a member of
the Board of Trustees of the University or of the host
institution, or a member of the advisory group
established under section 112 is a controlling
shareholder, director, or owner within the meaning of
Federal securities laws and other applicable laws.
Neither the University nor NTID may assign,
hypothocate, encumber, or create a lien on the Federal
endowment fund corpus without specific written
authorization of the Secretary.
(d) Withdrawals and Expenditures.--
(1) Except as provided in paragraph (3)(B), neither
the University nor NTID may withdraw or expend any of
the corpus of its Federal endowment fund.
(2)(A) The University and NTID, respectively, may
withdraw or expend the income of its Federal endowment
fund only for expenses necessary to the operation of
that institution, including expenses of operations and
maintenance, administration, academic and support
personnel, construction and renovation, community and
student services programs, technical assistance, and
research.
(B) Neither the University nor NTID may withdraw or
expend the income of its Federal endowment fund for any
commercial purpose.
(C) The University and NTID shall maintain records of
the income generated from its respective Federal
endowment fund for the prior fiscal year.
(3)(A) Except as provided in subparagraph (B), the
University and NTID, respectively, may, on an annual
basis, withdraw or expend not more than 50 percent of
the income generated from its Federal endowment fund
from the current fiscal year.
(B) The Secretary may permit the University or NTID
to withdraw or expend a portion of its Federal
endowment fund corpus or more than 50 percent of the
income generated from its Federal endowment fund from
the prior fiscal year if the institution involved
demonstrates, to the Secretary's satisfaction, that
such withdrawal or expenditure is necessary because
of--
(i) a financial emergency, such as a pending
insolvency or temporary liquidity problem;
(ii) a life-threatening situation occasioned
by natural disaster or arson; or
(iii) another unusual occurrence or exigent
circumstance.
(e) Investment and Expenditure Flexibility.--The corpus
associated with a [Federal payment] payment under subsection
(b) (and its non-Federal match) made to the Federal endowment
fund of the University or NTID shall not be subject to the
investment limitations of subsection (c)(1) after 10 fiscal
years following the fiscal year in which the funds are matched,
and the income generated from such corpus after the tenth
fiscal year described in this subsection shall not be subject
to such investment limitations or to the withdrawal and
expenditure limitations of subsection (d)(3).
(f) Recovery of Payments.--After notice and an opportunity
for a hearing, the Secretary is authorized to recover any
[Federal payments] payments under this section if the
University or NTID--
(1) makes a withdrawal or expenditure of the corpus
or income of its Federal endowment fund that is not
consistent with this section;
(2) fails to comply with the investment standards and
limitations under this section; or
(3) fails to account properly to the Secretary
concerning the investment of or expenditures from the
Federal endowment fund corpus or income.
(g) Definitions.--As used in this section:
(1) The term ``corpus'', with respect to a Federal
endowment fund under this section, means an amount
equal to the [Federal payments to such fund] payments
made under subsection (b), amounts contributed to the
fund from non-Federal sources, and appreciation from
capital gains and reinvestment of income.
(2) The term ``Federal endowment fund'' means a fund,
or a tax-exempt foundation, established and maintained
pursuant to this section by the University or NTID, as
the case may be, for the purpose of generating income
for the support of the institution involved.
(3) The term ``income'', with respect to a Federal
endowment fund under this section, means an amount
equal to the dividends and interest accruing from
investments of the corpus of such fund.
(4) The term ``institution involved'' means the
University or NTID, as the case may be.
[(h) Authorization of Appropriations.--
[(1) In the case of the University, there are
authorized to be appropriated for the purposes of this
section such sums as may be necessary for each of the
fiscal years 2009 through 2014.
[(2) In the case of NTID, there are authorized to be
appropriated for the purposes of this section such sums
as may be necessary for each of the fiscal years 2009
through 2014.
[(3) Amounts appropriated under paragraph (1) or (2)
shall remain available until expended.]
[(i)] (h) Effective Date.--The provisions of this section
shall take effect as if included in this Act as enacted on
August 4, 1986.
SEC. 208. OVERSIGHT AND EFFECT OF AGREEMENTS.
(a) Oversight Activities.--Nothing in this Act shall be
construed to diminish the oversight activities of the Committee
on [Education and Labor] Education and the Workforce of the
House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate with respect to
any agreement entered into between the Secretary of Education
and Gallaudet University, and the institution of higher
education with which the Secretary has an agreement under part
B of title I.
(b) Construction of Agreements.--The agreements described in
subsection (a) of this section shall continue in effect, to the
extent that such agreements are not inconsistent with this Act.
* * * * * * *
SEC. 210. RESEARCH PRIORITIES.
(a) Research Priorities.--Gallaudet University and the
National Technical Institute for the Deaf shall each establish
and disseminate priorities for their national mission with
respect to deafness related research, development, and
demonstration activities, that reflect public input, through a
process that includes consumers, constituent groups, and the
heads of other federally funded programs. The priorities for
the University shall include activities conducted as part of
the University's elementary and secondary education programs
under section 104.
(b) Research Reports.--The University and NTID shall each
prepare and submit an annual research report, to the Secretary,
the Committee on [Education and Labor] Education and the
Workforce of the House of Representatives, and the Committee on
Health, Education, Labor, and Pensions of the Senate, not later
than January 10 of each year, that shall include--
(1) a summary of the public input received as part of
the establishment and dissemination of priorities
required by subsection (a), and the University's and
NTID's response to the input; and
(2) a summary description of the research undertaken
by the University and NTID, the start and projected end
dates for each research project, the projected cost and
source or sources of funding for each project, and any
products resulting from research completed in the prior
fiscal year.
[SEC. 211. NATIONAL STUDY ON THE EDUCATION OF THE DEAF.
[(a) Conduct of Study.--
[(1) In general.--The Secretary shall establish a
commission on the education of the deaf (in this
section referred to as the ``commission'') to conduct a
national study on the education of the deaf, to
identify education-related barriers to successful
postsecondary education experiences and employment for
individuals who are deaf, and those education-related
factors that contribute to successful postsecondary
education experiences and employment for individuals
who are deaf.
[(2) Definition.--In this section the term ``deaf'',
when used with respect to an individual, means an
individual with a hearing impairment, including an
individual who is hard of hearing, an individual
deafened later in life, and an individual who is
profoundly deaf.
[(b) Public Input and Consultation.--
[(1) In general.--In conducting such study, the
commission shall obtain input from the public. To
obtain such input, the commission shall--
[(A) publish a notice with an opportunity for
comment in the Federal Register;
[(B) consult with individuals and
organizations representing a wide range of
perspectives on deafness-related issues,
including organizations representing
individuals who are deaf, parents of children
who are deaf, educators, and researchers; and
[(C) take such other action as the commission
deems appropriate, which may include holding
public meetings.
[(2) Structured opportunities.--The commission shall
provide structured opportunities to receive and respond
to the viewpoints of the individuals and organizations
described in paragraph (1)(B).
[(c) Report.--The commission shall report to the Secretary
and Congress not later than 18 months after the date of the
enactment of the Higher Education Opportunity Act regarding the
results of the study. The report shall contain--
[(1) recommendations relating to educated-related
factors that contribute to successful postsecondary
education experiences and employment for individuals
who are deaf, including recommendations for
legislation, that the commission deems appropriate; and
[(2) a detailed summary of the input received under
subsection (b) and the ways in which the report
addresses such input.
[(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary for each of
the fiscal years 2009 and 2010 to carry out the provisions of
this section.]
SEC. 212. AUTHORIZATION OF APPROPRIATIONS.
(a) Gallaudet University.--There are authorized to be
appropriated [such sums as may be necessary for each of the
fiscal years 2009 through 2014] $121,275,000 for each of the
fiscal years 2019 through 2024 to carry out the provisions of
title I and this title, relating to--
(1) Gallaudet University;
(2) Kendall Demonstration Elementary School; and
(3) the Model Secondary School for the Deaf.
(b) National Technical Institute for the Deaf.--There are
authorized to be appropriated [such sums as may be necessary
for each of the fiscal years 2009 through 2014] $70,016,000 for
each of the fiscal years 2019 through 2024 to carry out the
provisions of title I and this title relating to the National
Technical Institute for the Deaf.
----------
TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT OF 1978
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Tribally Controlled Colleges
and Universities Assistance Act of 1978''.
definitions
Sec. 2. (a) For purposes of this Act, the term--
(1) ``Indian'' means a person who is a member of an
Indian tribe;
(2) ``Indian tribe'' means any Indian tribe, band,
nation, or other organized group or community,
including any Alaskan Native village or regional or
village corporation as defined in or established
pursuant to the Alaskan Native Claims Settlement Act,
which is recognized as eligible for the special
programs and services provided by the United States to
Indians because of their status as Indians;
(3) ``Secretary'', unless otherwise designated, means
the Secretary of the Interior;
(4) ``tribally controlled college or university''
means an institution of higher education which is
formally controlled, or has been formally sanctioned,
or chartered, by the governing body of an Indian tribe
or tribes, except that no more than one such
institution shall be recognized with respect to any
such tribe;
(5) ``institution of higher education'' means an
institution of higher education as defined by section
101 of the Higher Education Act of 1965, except that
clause (2) of such section shall not be applicable and
the reference to Secretary in clause (5)(A) of such
section shall be deemed to refer to the Secretary of
the Interior;
(6) ``national Indian organization'' means an
organization which the Secretary finds is nationally
based, represents a substantial Indian constituency,
and has expertise in the fields of tribally controlled
colleges and universities and Indian higher education;
(7) ``Indian student'' means a student who is--
(A) a member of an Indian tribe; or
(B) a biological child of a member of an
Indian tribe, living or deceased; and
(8) ``Indian student count'' means a number equal to
the total number of Indian students enrolled in each
tribally controlled college or university, determined
in a manner consistent with subsection (b) of this
section on the basis of the quotient of the sum of the
credit hours of all Indian students so enrolled,
divided by twelve[; and].
[(9) ``satisfactory progress toward a degree or
certificate'' has the meaning given to such term by the
institution at which the student is enrolled.]
(b) The following conditions shall apply for the purpose of
determining the Indian student count pursuant to subsection
(a)(8):
[(1) Such number shall be calculated on the basis of
the registrations of Indian students as in effect at
the conclusion of the third week of each academic
term.]
(1) Such number shall be calculated based on the
number of Indian students who are enrolled--
(A) at the conclusion of the third week of
each academic term; or
(B) on the fifth day of a shortened program
beginning after the conclusion of the third
full week of an academic term.
(2) Credits earned in classes offered during a summer
term shall be counted toward the computation of the
Indian student count in the succeeding fall term.
(3) Credits earned by any student who has not
obtained a high school degree or its equivalent shall
be counted toward the computation of the Indian student
count if the institution at which the student is in
attendance has established criteria for the admission
of such student on the basis of the student's ability
to benefit from the education or training offered. The
institution shall be presumed to have established such
criteria if the admission procedures for such studies
include counseling or testing that measures the
student's aptitude to successfully complete the course
in which the student has enrolled. No credits earned by
such student [for purposes of obtaining] solely for the
purpose of obtaining a high school degree or its
equivalent shall be counted toward the computation of
the Indian student count.
(4) Indian students earning credits in any continuing
education program of a tribally controlled college or
university shall be included in determining the sum of
all credit hours.
(5) Eligible credits earned in a continuing education
program--
(A) shall be determined as one credit for
every ten contact hours in the case of an
institution on a quarter system, or 15 contact
hours in the case of an institution on a
semester system, of participation in an
organized continuing education experience under
responsible sponsorship, capable direction, and
qualified instruction, as described in the
criteria established by the International
Association for Continuing Education and
Training; and
(B) shall be limited to ten percent of the
Indian student count of a tribally controlled
college or university.
(6) Enrollment data from the prior-prior academic
year shall be used.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
(a) Titles I and IV.--There are authorized to be appropriated
$57,412,000 for each of fiscal years 2019 through 2024 to carry
out titles I and IV.
(b) Title V.--There are authorized to be appropriated
$7,414,000 for each of fiscal years 2019 through 2024 to carry
out title V.
TITLE ITRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES--TRIBALLY
CONTROLLED [COLLEGES OR UNIVERSITIES] COLLEGES AND UNIVERSITIES
purpose
Sec. 101. It is the purpose of this title to provide grants
for the operation and improvement of tribally controlled
[colleges or universities] colleges and universities to insure
continued and expanded educational opportunities for Indian
students, and to allow for the improvement and expansion of the
physical resources of such institutions.
grants authorized
Sec. 102. (a) The Secretary shall, subject to appropriations,
make grants pursuant to this title to tribally controlled
[colleges or universities] colleges and universities to aid in
the postsecondary education of Indian students.
(b) Grants made pursuant to this title shall go into the
general operating funds of the institution to defray, at the
determination of the tribally controlled college or university,
expenditures for academic, educational, and administrative
purposes and for the operation and maintenance of the the
college or university. Funds provided pursuant to this title
shall not be used in connection with religious worship or
sectarian instruction.
eligible grant recipients
Sec. 103. To be eligible for assistance under this title, a
tribally controlled college or university must be one which--
(1) is governed by a board of directors or board of
trustees a majority of which are Indians;
(2) demonstrates adherence to stated goals, a
philosophy, or a plan of operation which is directed to
meet the needs of Indians;
(3) if in operation for more than one year, has
students a majority of whom are Indians; and
(4)(A) is accredited by a nationally recognized
accrediting agency or association determined by the
Secretary of Education to be a reliable authority with
regard to the quality of training offered; or
(B) according to such an agency or association, is
making reasonable progress toward accreditation.
[planning grants
[Sec. 104. (a) The Secretary shall establish a program in
accordance with this section to make grants to tribes and
tribal entities (1) to conduct planning activities for the
purpose of developing proposals for the establishment of
tribally controlled[colleges or universities]colleges and
universities, or (2) to determine the need and potential for
the establishment of such[colleges or universities]colleges and
universities.
[(b) The Secretary shall establish, by regulation, procedures
for the submission and review of applications for grants under
this section.
[(c) From the amount appropriated to carry out this title for
any fiscal year (exclusive of sums appropriated for section
105), the Secretary shall reserve (and expend) an amount
necessary to make grants to five applicants under this section
of not more than $15,000 each, or an amount necessary to make
grants in that amount to each of the approved applicants, if
less than five apply and are approved.]
SEC. 105. TECHNICAL ASSISTANCE CONTRACTS.
(a) Technical Assistance.--
(1) In general.--The Secretary shall provide, upon
request from a tribally controlled college or
university which is receiving funds under section 108,
technical assistance either directly or through
contract.
(2) Designated organization.--The Secretary shall
require that a contract for technical assistance under
paragraph (1) shall be awarded to an organization
designated by the tribally controlled college or
university to be assisted.
(b) Effect of Section.--No authority to enter into contracts
provided by this section shall be effective except to the
extent authorized in advance by appropriations Acts.
eligibility studies
Sec. 106. (a) The Secretary is authorized to enter into an
agreement with the Secretary of Education to assist the [Bureau
of Indian Affairs] Bureau of Indian Education in developing
plans, procedures, and criteria for conducting the eligibility
studies required by this section. Such agreement shall provide
for continuing technical assistance in the conduct of such
studies.
(b) The Secretary, within thirty days after a request by any
Indian tribe, shall initiate a eligibility study to determine
whether there is justification to encourage and maintain a
tribally controlled college or university, and, upon a positive
determination, shall aid in the preparation of grant
applications and related budgets which will insure successful
operation of such an institution. Such a positive determination
shall be effective for the fiscal year succeeding the fiscal
year in which such determination is made.
(c) Funds to carry out the purposes of this section for any
fiscal year may be drawn from either--
(1) general administrative appropriations to the
Secretary made after the date of enactment of this Act
for such fiscal year; or
(2) not more than 5 per centum of the funds
appropriated to carry out section 107 for such fiscal
year.
grants to tribally controlled [colleges or universities] colleges and
universities
Sec. 107. (a) Grants shall be made under this title only in
response to applications by tribally controlled community
[colleges or universities] colleges and universities. Such
applications shall be submitted at such time, in such manner,
and will contain or be accompanied by such information as the
Secretary may reasonably require pursuant to regulations. Such
application shall include a description of recordkeeping
procedures for the expenditure of funds received under this Act
which will allow the Secretary to audit and monitor programs
conducted with such funds. The Secretary shall not consider any
grant application unless a eligibility study has been conducted
under section 106 and it has been found that the applying
college or university will service a reasonable student
population.
(b) The Secretary shall consult with the Secretary of
Education to determine the reasonable number of students
required to support a tribally controlled college or
university. Consideration shall be given to such factors as
tribal and cultural differences, isolation, the presence of
alternate education sources, and proposed curriculum.
[(c) Priority in grants shall be given to institutions which
are operating on the date of enactment of this Act and which
have a history of service to the Indian people. In the first
year for which funds are appropriated to carry out this
section, the number of grants shall be limited to not less than
eight nor more than fifteen.]
[(d)] (c) In making grants pursuant to this section, the
Secretary shall, to the extent practicable, consult with
national Indian organizations and with tribal governments
chartering the institutions being considered.
amount of grants
Sec. 108. (a) Requirement.--
(1) In general.--Except as provided in paragraph (2)
and section 111, the Secretary shall, subject to
appropriations, grant for each academic year to each
tribally controlled college or university having an
application approved by the Secretary an amount equal
to the product obtained by multiplying--
(A) the Indian student count at such college
or university during the academic year
preceding the academic year for which such
funds are being made available, as determined
by the Secretary in accordance with section
2(a)(8); and
(B) $8,000, as adjusted annually for
inflation.
(2) Exception.--The amount of a grant under paragraph
(1) shall not exceed an amount equal to the total cost
of the education program provided by the applicable
tribally controlled college or university.
(b)(1) The Secretary shall make payments, pursuant to grants
under this Act, of not less than 95 percent [of the funds
available for allotment by October 15 or no later than 14 days
after appropriations become available] of the amounts
appropriated for any fiscal year on or before July 1 of that
fiscal year, with a payment equal to the remainder of any grant
to which a grantee is entitled to be made no later than
[January 1] September 30 of each fiscal year.
(2) Notwithstanding any other provision of law, the Secretary
shall not, in disbursing funds provided under this title, use
any method of payment which was not used during fiscal year
1987 in the disbursement of funds provided under this title.
(3)(A) Notwithstanding any provision of law other than
subparagraph (B), any interest or investment income that
accrues on any funds provided under this title after such funds
are paid to the tribally controlled college or university and
before such funds are expended for the purpose for which such
funds were provided under this title shall be the property of
the tribally controlled college or university and shall not be
taken into account by any officer or employee of the Federal
Government in determining whether to provide assistance, or the
amount of assistance, to the tribally controlled college or
university under any provision of Federal law.
(B) All interest or investment income described in
subparagraph (A) shall be expended by the tribally controlled
college or university by no later than the close of the fiscal
year succeeding the fiscal year in which such interest or
investment income accrues.
(4) Funds provided under this title may only be invested by
the tribally controlled college or university in obligations of
the United States or in obligations or securities that are
guaranteed or insured by the United States.
(c)(1) Each institution receiving payments under this title
shall annually provide to the Secretary an accurate and
detailed accounting of its operating and maintenance expenses
and such other information concerning costs as the Secretary
may request.
(2) The Secretary shall, in consultation with the National
Center for Education Statistics, establish a data collection
system for the purpose of obtaining accurate information with
respect to the needs and costs of operation and maintenance of
tribally controlled [colleges or universities] colleges and
universities.
(d) Nothing in this section shall be construed as interfering
with, or suspending the obligation of the Bureau for, the
implementation of all legislative provisions enacted prior to
April 28, 1988, specifically including those of Public Law 98-
192.
effect on other programs
Sec. [109] . (a) Except as specifically provided in this
title, eligibility for assistance under this title shall not,
by itself, preclude the eligibility of any tribally controlled
college or university to receive Federal financial assistance
under any program authorized under the Higher Education Act of
1965 or any other applicable program for the benefit of
institutions of higher education, community colleges, or
postsecondary educational institutions.
(b)(1) The amount of any grant for which tribally controlled
[colleges or universities] colleges and universities are
eligible under section 108 shall not be altered because of
funds allocated to any such [colleges or universities] colleges
and universities from funds appropriated under the Act of
November 2, 1921 (42 Stat. 208; 25 U.S.C. 13).
(2) No tribally controlled college or university shall be
denied funds appropriated under such Act of November 2, 1921,
because of the funds it receives under this Act.
(3) No tribally controlled college or university for which a
tribe has designated a portion of the funds appropriated for
the tribe from funds appropriated under the Act of November 2,
1921 (42 Stat. 208; 25 U.S.C. 13) may be denied a contract for
such portion under the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450 et seq.) (except as provided in
that Act), or denied appropriate contract support to administer
such portion of the appropriated funds.
(c) For the purposes of sections 312(2)(A)(i) and
322(a)(2)(A)(i) of the Higher Education Act of 1965, any Indian
student who receives a student assistance grant from the
[Bureau of Indian Affairs] Bureau of Indian Education for
postsecondary education shall be deemed to have received such
assistance under subpart 1 of part A of title IV of such Act.
[(c)] (d) Notwithstanding any other provision of law, funds
provided under this title to the tribally controlled college or
university may be treated as non-Federal law which requires
that non-Federal or private funds of the college or university
be used in a project or for a specific purpose.
appropriation authorization
Sec. 110. (a)(1) There is authorized to be appropriated, for
the purpose of carrying out section 105, [$3,200,000 for fiscal
year 2009 and] such sums as may be necessary from the amount
made available under section 3(a) for each fiscal year [for
each of the five succeeding fiscal years].
(2) There is authorized to be appropriated for the purpose of
carrying out section 107, such sums as may be necessary [for
fiscal year 2009 and such sums as may be necessary for each of
the five succeeding fiscal years.] from the amount made
available under section 3(a) for each fiscal year.
(3) There is authorized to be appropriated for the purpose of
carrying out sections 112(b) and 113, such sums as may be
necessary [for fiscal year 2009 and such sums as may be
necessary for each of the five succeeding fiscal years.] from
the amount made available under section 3(a) for each fiscal
year.
(4) Funds appropriated pursuant to the authorizations under
this section for the fiscal year [2009] 2019 and for each of
the five succeeding fiscal years shall be transferred by the
Secretary of the Treasury through the most expeditious method
available, with each of the tribally controlled [colleges or
universities] colleges and universities being designated as its
own certifying agency.
(b)(1) For the purpose of affording adequate notice of
funding available under this Act, amounts appropriated in an
appropriation Act for any fiscal year to carry out this Act
shall become available for obligation on July 1 of that fiscal
year and shall remain available until September 30 of the
succeeding fiscal year.
(2) In order to effect a transition to the forward funding
method of timing appropriation action described in paragraph
(1), there are authorized to be appropriated, in an
appropriation Act or Acts for the same fiscal year, two
separate appropriations to carry out this Act, the first of
which shall not be subject to paragraph (1).
grant adjustments
Sec. 111. (a)(1) If the sums appropriated for any fiscal year
pursuant to section 110(a)(2) for grants under section 107 are
not sufficient to pay in full the total amount which approved
applicants are eligible to receive under such section for such
fiscal year--
(A) the Secretary shall first allocate to each such
applicant which received funds under section 107 for
the preceding fiscal year an amount equal to 95 percent
of the payment received by such applicant under section
108;
(B) the Secretary shall next allocate to applicants
who did not receive funds under such section for the
preceding fiscal year an amount equal to 100 per centum
of the product of--
(i) the per capita payment for the preceding
fiscal year; and
(ii) the applicant's projected Indian student
count for the academic year for which payment
is being made;
in the order in which such applicants have qualified
for assistance in accordance with such section so that
no amount shall be allocated to a later qualified
applicant until each earlier qualified applicant is
allocated an amount equal to such product; and
(C) if additional funds remain after making the
allocations required by subparagraphs (A) and (B), the
Secretary shall allocate such funds by--
(i) ratably increasing the amounts of the
grants determined under subparagraph (A) until
such grants are equal to 100 per centum of the
product described in such subparagraph; and
(ii) then ratably increasing the amounts of
both (I) the grants determined under
subparagraph (A), as increased under clause (i)
of this subparagraph, and (II) the grants
determined under subparagraph (B).
(2) For purposes of paragraph (1) of this subsection, the
term ``per capita payment'' for any fiscal year shall be
determined by dividing the amount available for grants to
tribally controlled [colleges or universities] colleges and
universities under section 107 for such fiscal year by the sum
of the Indian student counts of such [colleges or universities]
colleges and universities for such fiscal year. The Secretary
shall, on the basis of the most satisfactory data available,
compute the Indian student count for any fiscal year for which
such count was not used for the purpose of making allocations
under this title.
(b)(1) If the sums appropriated for any fiscal year for
grants under section 107 are not sufficient to pay in full the
total amount of the grants determined pursuant to subsection
(a)(1)(A), the amount which applicants described in such
subsection are eligible to receive under section 107 for such
fiscal year shall be ratably reduced.
(2) If any additional funds become available for making
payments under section 107 for any fiscal year to which
subsection (a) or paragraph (1) of this subsection applies,
such additional amounts shall be allocated by first increasing
grants reduced under paragraph (1) of this subsection on the
same basis as they were reduced and by then allocating the
remainder in accordance with subsection (a). Sums appropriated
in excess of the amount necessary to pay in full the total
amounts for which applicants are eligible under section 107
shall be allocated by ratably increasing such total amounts.
(3) References in this subsection and subsection (a) to
section 107 shall, with respect to fiscal year 1983, be deemed
to refer to section 106 as in effect at the beginning of such
fiscal year.
(c) In any fiscal year in which the amounts for which grant
recipients are eligible to receive have been reduced under the
first sentence of subsection (a) of this section, and in which
additional funds have not been made available to pay in full
the total of such amounts under the second sentence of such
subsection, each grantee shall report to the Secretary any
unused portion of received funds ninety days prior to the grant
expiration date. The amounts so reported by any grant recipient
shall be made available for allocation to eligible grantees on
a basis proportionate to the amount which is unfunded as a
result of the ratable reduction, but no grant recipient shall
receive, as a result of such reallocation, more than the amount
provided for under section 107(a) of this title.
report on facilities
Sec. 112. (a) The Secretary shall provide for the conduct of
a study of facilities available for use by tribally controlled
[colleges or universities] colleges and universities. Such
study shall consider the condition of currently existing
[Bureau of Indian Affairs] Bureau of Indian Education
facilities which are vacant or underutilized and shall consider
available alternatives for renovation, alteration, repair, and
reconstruction of such facilities (including renovation,
alteration, repair, and reconstruction necessary to bring such
facilities into compliance with local building codes). Such
study shall also identify the need for new construction. A
report on the results of such study shall be submitted to the
Congress not later than eighteen months after the date of
enactment of the Tribally Controlled Community College
Assistance Amendments of 1986. Such report shall also include
an identification of property--
(1) on which structurally sound buildings suitable
for use as educational facilities are located, and
(2) which is available for use by tribally controlled
community [colleges or universities] colleges and
universities under section 202(a)(2) of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 483(a)(2)) and under the Act of August 6, 1956
(70 Stat. 1057; 25 U.S.C. 443a).
(b) The Secretary, in consultation with the [Bureau of Indian
Affairs] Bureau of Indian Education, shall initiate a program
to conduct necessary renovations, alterations, repairs, and
reconstruction identified pursuant to subsection (a) of this
section.
(c)(1) The Secretary shall enter into a contract with an
organization described in paragraph (2) to establish and
provide on an annual basis criteria for the determination and
prioritization in a consistent and equitable manner of the
facilities construction and renovation needs of [colleges or
universities] colleges and universities that receive funding
under this Act or the [Navajo Community College Act] Dine
College Act.
(2) An organization described in this section is any
organization that--
(A) is eligible to receive a contract under the
Indian Self-Determination and Education Assistance Act;
and
(B) has demonstrated expertise in areas and issues
dealing with tribally controlled [colleges or
universities] colleges and universities.
(3) The Secretary shall include the priority list established
pursuant to this subsection in the budget submitted annually to
the Congress.
(d) For the purposes of this section, the term
``reconstruction'' has the meaning provided in the first
sentence of subparagraph (B) of section 742(2) of the Higher
Education Act of 1965 (20 U.S.C. 1132e-1(2)(B)).
construction of new facilities
Sec. 113. (a) With respect to any tribally controlled college
or university for which the report of the Administrator of
General Services under section 112(a) of this Act identifies a
need for new construction, the Secretary shall, subject to
appropriations and on the basis of an application submitted in
accordance with such requirements as the Secretary may
prescribe by regulation, provide grants for such construction
in accordance with this section.
(b) In order to be eligible for a grant under this section, a
tribally controlled college or university--
(1) must be a current recipient of grants under
section 105 or 107, and
(2) must be accredited by a nationally recognized
accrediting agency listed by the Secretary of Education
pursuant to the last sentence of section 101 of the
Higher Education Act of 1965, except that such
requirement may be waived if the Secretary determines
that there is a reasonable expectation that such
college or university will be fully accredited within
eighteen months. In any case where such a waiver is
granted, grants under this section shall be available
only for planning and development of proposals for
construction.
(c)(1) Except as provided in paragraph (2), grants for
construction under this section shall not exceed 80 per centum
of the cost of such construction, except that no tribally
controlled college or university shall be required to expend
more than $400,000 in fulfillment of the remaining 20 per
centum. For the purpose of providing its required portion of
the cost of such construction, a tribally controlled college or
university may use funds provided under the Act of November 2,
1921 (25 U.S.C. 13), popularly referred to as the Snyder Act.
(2) The Secretary may waive, in whole or in part, the
requirements of paragraph (1) in the case of any tribally
controlled college or university which demonstrates that
neither such college or university nor the tribal government
with which it is affiliated have sufficient resources to comply
with such requirements. The Secretary shall base a decision on
whether to grant such a waiver solely on the basis of the
following factors: (A) tribal population; (B) potential student
population; (C) the rate of unemployment among tribal members;
(D) tribal financial resources; and (E) other factors alleged
by the college or university to have a bearing on the
availability of resources for compliance with the requirements
of paragraph (1) and which may include the educational
attainment of tribal members.
(d) If, within twenty years after completion of construction
of a facility which has been constructed in whole or in part
with a grant made available under this section--
(1) the facility ceases to be used by the applicant
in a public or nonprofit capacity as an academic
facility, unless the Secretary determines that there is
good cause for releasing the institution from this
obligation, and
(2) the tribe with which the applicant is affiliated
fails to use the facility for a public purpose approved
by the tribal government in futherance of the general
welfare of the community served by the tribal
government,
title to the facility shall vest in the United States and the
applicant (or such tribe if such tribe is the successor in
title to the facility) shall be entitled to recover from the
United States an amount which bears the same ratio to the
present value of the facility as the amount of the applicant's
contribution (excluding any funds provided under the Act of
November 2, 1921 (25 U.S.C. 13)) bore to the original cost of
the facility. Such value shall be determined by agreement of
the parties or by action brought in the United States district
court for the district in which such facility is located.
(e) No construction assisted with funds under this section
shall be used for religious worship or a sectarian activity or
for a school or department of divinity.
(f) For the purposes of this section--
(1) the term ``construction'' includes reconstruction
or renovation (as such terms are defined in the first
sentence of subparagraph (B) of section 742(2) of the
Higher Education Act of 1965 (20 U.S.C. 1132e-
1(2)(B))); and
(2) the term ``academic facilities'' has the meaning
provided such term under section 742(1) of the Higher
Education Act of 1965 (20 U.S.C. 1132e-1(1)).
miscellaneous provisions
Sec. 114. (a) The Navajo Tribe shall not be eligible to
participate under the provisions of this title.
(b)(1) The Secretary shall not provide any funds to any
institution which denies admission to any Indian student
because such individual is not a member of a specific Indian
tribe, or which denies admission to any Indian student because
such individual is a member of a specific tribe.
(2) The Secretary shall take steps to recover any unexpended
and unobligated funds provided under this title held by an
institution determined to be in violation of paragraph (1).
[rules and regulations
[Sec. 115. (a) Within four months from the date of enactment
of this Act, the Secretary shall, to the extent practicable,
consult with national Indian organizations to consider and
formulate appropriate rules and regulations for the conduct of
the grant program established by this title.
[(b) Within six months from the date of enactment of this
Act, the Secretary shall publish proposed rules and regulations
in the Federal Register for the purpose of receiving comments
from interested parties.
[(c) Within ten months from the date of enactment of this
Act, the Secretary shall promulgate rules and regulations for
the conduct of the grant program established by this title.
[(d) Funds to carry out the purposes of this section may be
drawn from general administrative appropriations to the
Secretary made after the date of enactment of this Act.]
* * * * * * *
[TITLE III--TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ENDOWMENT PROGRAM
[purpose
[Sec. 301. It is the purpose of this title to provide grants
for the encouragement of endowment funds for the operation and
improvement of tribally controlled colleges or universities.
[establishment of program; program agreements
[Sec. 302. (a) From the amount appropriated pursuant to
section 306, the Secretary shall establish a program of making
endowment grants to tribally controlled colleges or
universities which are current recipients of assistance under
section 107 of this Act or under section 3 of the Navajo
Community College Act. No such college or university shall be
ineligible for such a grant for a fiscal year by reason of the
receipt of such a grant for a preceding fiscal year, but no
such college or university shall be eligible for such a grant
for a fiscal year if such college or university has been
awarded a grant under section 331 of the Higher Education Act
of 1965 for such fiscal year.
[(b) No grant for the establishment of an endowment fund by a
tribally controlled college or university shall be made unless
such college or university enters into an agreement with the
Secretary which--
[(1) provides for the investment and maintenance of a
trust fund, the corpus and earnings of which shall be
invested in the same manner as funds are invested under
paragraph (2) of section 331(c) of the Higher Education
Act of 1965, except that for purposes of this
paragraph, the term ``trust fund'' means a fund
established by an institution of higher education or by
a foundation that is exempt from taxation and is
maintained for the purpose of generating income for the
support of the institution, and may include real
estate;
[(2) provides for the deposit in such trust fund of--
[(A) any Federal capital contributions made
from funds appropriated under section 306;
[(B) a capital contribution by such college
or university in an amount (or of a value)
equal to half of the amount of each Federal
capital contribution; and
[(C) any earnings of the funds so deposited;
[(3) provides that such funds will be deposited in
such a manner as to insure the accumulation of interest
thereon at a rate not less than that generally
available for similar funds deposited at the banking or
savings institution for the same period or periods of
time;
[(4) provides that, if at any time such college or
university withdraws any capital contribution made by
that college or university, an amount of Federal
capital contribution equal to twice the amount of (or
value of) such withdrawal shall be withdrawn and
returned to the Secretary for reallocation to other
colleges or universities;
[(5) provides that no part of the net earnings of
such trust fund will inure to the benefit of any
private person; and
[(6) includes such other provisions as may be
necessary to protect the financial interest of the
United States and promote the purpose of this title and
as are agreed to by the Secretary and the college or
university, including a description of recordkeeping
procedures for the expenditure of accumulated interest
which will allow the Secretary to audit and monitor
programs and activities conducted with such interest.
[use of funds
[Sec. 303. Interest deposited, pursuant to section
302(b)(2)(C), in the trust fund of any tribally controlled
college or university may be periodically withdrawn and used,
at the discretion of such college or university, to defray any
expenses associated with the operation of such college or
university, including expense of operations and maintenance,
administration, academic and support personnel, community and
student services programs, and technical assistance.
[compliance with matching requirement
[Sec. 304. For the purpose of complying with the contribution
requirement of section 302(b)(2)(B), a tribally controlled
college or university may use funds which are available from
any private or tribal source. Any real or personal property
received by a tribally controlled college or university as a
donation or gift on or after the date of the enactment of this
sentence may, to the extent of its fair market value as
determined by the Secretary, be used by such college or
university as its contribution pursuant to section
302(b)(2)(B), or as part of such contribution, as the case may
be. In any case in which any such real or personal property so
used is thereafter sold or otherwise disposed of by such
college or university, the proceeds therefrom shall be
deposited pursuant to section 302(b)(2)(B) but shall not again
be considered for Federal capital contribution purposes.
[allocation of funds
[Sec. 305. (a) From the amount appropriated pursuant to
section 306, the Secretary shall allocate to each tribally
controlled college or university which is eligible for an
endowment grant under this title an amount for a Federal
capital contribution equal to twice the value of the property
or the amount which such college or university demonstrates has
been placed within the control of, or irrevocably committed to
the use of, the college or university and is available for
deposit as a capital contribution of that college or university
in accordance with section 302(b)(2)(B), except that the
maximum amount which may be so allocated to any such college or
university for any fiscal year shall not exceed $750,000.
[(b) If for any fiscal year the amount appropriated pursuant
to section 306 is not sufficient to allocate to each tribally
controlled college or university an amount equal to twice the
value of the property or the amount demonstrated by such
college or university pursuant to subsection (a), then the
amount of the allocation to each such college or university
shall be ratably reduced.
[authorization of appropriations
[Sec. 306. (a) There are authorized to be appropriated to
carry out the provisions of this title, $10,000,000 for fiscal
year 2009 and such sums as may be necessary for each of the
five succeeding fiscal years.
[(b) Any funds appropriated pursuant to subsection (a) are
authorized to remain available until expended.]
TITLE IV--TRIBAL ECONOMIC DEVELOPMENT
SEC. 401. SHORT TITLE.
This title may be cited as the ``Tribal Economic Development
and Technology Related Education Assistance Act of 1990''.
SEC. 402. GRANTS AUTHORIZED.
(a) General Authority.--The Secretary is authorized, subject
to the availability of appropriations, to make grants to
tribally controlled[colleges or universities]colleges and
universities which receive grants under either this Act or
the[Navajo Community College Act]Dine College Act for the
establishment and support of tribal economic development and
education institutes. Each program conducted with assistance
under a grant under this subsection shall include at least the
following activities:
(1) Determination of the economic development needs
and potential of the Indian tribes involved in the
program, including agriculture and natural resource
needs.
(2) Development of consistent courses of instruction
to prepare postsecondary students, tribal officials and
others to meet the needs defined under paragraph (1).
The development of such courses may be coordinated with
secondary institutions to the extent practicable.
(3) The conduct of vocational courses, including
administrative expenses and student support services.
(4) Technical assistance and training to Federal,
tribal and community officials and business managers
and planners deemed necessary by the institution to
enable full implementation of, and benefits to be
derived from, the program developed under paragraph
(1).
(5) Clearinghouse activities encouraging the
coordination of, and providing a point for the
coordination of, all vocational activities (and
academically related training) serving all students of
the Indian tribe involved in the grant.
(6) The evaluation of such grants and their effect on
the needs developed under paragraph (1) and tribal
economic self-sufficiency.
(b) Amount and Duration.--The grants shall be of such amount
and duration as to afford the greatest opportunity for success
and the generation of relevant data.
(c) Applications.--Institutions which receive funds under
other titles of this Act or the [Navajo Community College Act]
Dine College Act may apply for grants under this title either
individually or as consortia. Each applicant shall act in
cooperation with an Indian tribe or tribes in developing and
implementing a grant under this part.
SEC. 403. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grants under this
title, such sums as may be necessary [for fiscal year 2009 and
such sums as may be necessary for each of the five succeeding
fiscal years.] from the amount made available under section
3(a) for each fiscal year.
TITLE V--TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL
INSTITUTIONS
SEC. 501. DEFINITION OF TRIBALLY CONTROLLED POSTSECONDARY CAREER AND
TECHNICAL INSTITUTION.
In this title, the term ``tribally controlled postsecondary
career and technical institution'' has the meaning given the
term in section 3 of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2302).
SEC. 502. TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL
INSTITUTIONS PROGRAM.
(a) In General.--Subject to the availability of
appropriations, for fiscal year 2009 and each fiscal year
thereafter, the Secretary shall--
(1) subject to subsection (b), select two tribally
controlled postsecondary career and technical
institutions to receive assistance under this title;
and
(2) provide funding to the selected tribally
controlled postsecondary career and technical
institutions to pay the costs (including institutional
support costs) of operating postsecondary career and
technical education programs for Indian students at the
tribally controlled postsecondary career and technical
institutions.
(b) Selection of Certain Institutions.--
(1) Requirement.--For each fiscal year during which
the Secretary determines that a tribally controlled
postsecondary career and technical institution
described in paragraph (2) meets the definition
referred to in section 501, the Secretary shall select
that tribally controlled postsecondary career and
technical institution under subsection (a)(1) to
receive funding under this section.
(2) Institutions.--The two tribally controlled
postsecondary career and technical institutions
referred to in paragraph (1) are--
(A) the United Tribes Technical College; and
(B) the Navajo Technical College.
(c) Method of Payment.--For each applicable fiscal year, the
Secretary shall provide funding under this section to each
tribally controlled postsecondary career and technical
institution selected for the fiscal year under subsection
(a)(1) in a lump sum payment for the fiscal year.
(d) Distribution.--
(1) In general.--For fiscal year 2009 and each fiscal
year thereafter, of amounts made available pursuant to
section 504, the Secretary shall distribute to each
tribally controlled postsecondary career and technical
institution selected for the fiscal year under
subsection (a)(1) an amount equal to the greater of--
(A) the total amount appropriated for the
tribally controlled postsecondary career and
technical institution for fiscal year 2006; or
(B) the total amount appropriated for the
tribally controlled postsecondary career and
technical institution for fiscal year 2008.
(2) Excess amounts.--If, for any fiscal year, the
amount made available pursuant to section 504 exceeds
the sum of the amounts required to be distributed under
paragraph (1) to the tribally controlled postsecondary
career and technical institutions selected for the
fiscal year under subsection (a)(1), the Secretary
shall distribute to each tribally controlled
postsecondary career and technical institution selected
for that fiscal year a portion of the excess amount, to
be determined by--
(A) dividing the excess amount by the
aggregate Indian student count (as defined in
section 117(h) of the Carl D. Perkins Career
and Technical Education Act of 2006 (20 U.S.C.
2327(h)) of such institutions for the prior
academic year; and
(B) multiplying the quotient described in
subparagraph (A) by the Indian student count of
each such institution for the prior academic
year.
SEC. 503. APPLICABILITY OF OTHER LAWS.
(a) In General.--Paragraphs (4) and (8) of subsection (a),
and subsection (b), of section 2, sections 105, 108, 111, 112
and 113, and titles II, III, and IV shall not apply to this
title.
(b) Indian Self-Determination and Education Assistance.--
Funds made available pursuant to this title shall be subject to
the Indian Self-Determination and Education Assistance Act (25
U.S.C. 450 et seq.).
(c) Election to Receive.--A tribally controlled postsecondary
career and technical institution selected for a fiscal year
under section 502(b) may elect to receive funds pursuant to
section 502 in accordance with an agreement between the
tribally controlled postsecondary career and technical
institution and the Secretary under the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450 et
seq.) if the agreement is in existence on the date of enactment
of the Higher Education Opportunity Act.
(d) Other Assistance.--Eligibility for, or receipt of,
assistance under this title shall not preclude the eligibility
of a tribally controlled postsecondary career and technical
institution to receive Federal financial assistance under--
(1) any program under the Higher Education Act of
1965 (20 U.S.C. 1001 et seq.);
(2) any program under the Carl D. Perkins Career and
Technical Education Act of 2006; or
(3) any other applicable program under which a
benefit is provided for--
(A) institutions of higher education;
(B) community colleges; or
(C) postsecondary educational institutions.
SEC. 504. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary [for fiscal year 2009 and each fiscal year thereafter
to carry out this title.] from the amount made available under
section 3(b) for each fiscal year.
----------
ACT OF DECEMBER 15, 1971
(Public Law 92-189)
AN ACT To authorize grants for the Navajo Community College, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act
may be cited as the[``Navajo Community College Act''] ``Dine
College Act''.
* * * * * * *
authorization of appropriations
Sec. 5. (a)(1) For the purpose of making construction grants
under this Act, there are authorized to be appropriated such
sums as are necessary [for fiscal years 2009 through 2014] from
the amount made available under subsection (b)(1) for each
fiscal year.
(2) Sums appropriated pursuant to this subsection for
construction shall, unless otherwise provided in appropriations
Acts, remain available until expended.
(3) Sums described in paragraph (2) shall be used to provide
grants for construction activities, including the construction
of buildings, water and sewer facilities, roads, information
technology and telecommunications infrastructure, classrooms,
and external structures (such as walkways).
(b)(1) There are authorized to be appropriated for grants to
Dine College [such sums as are necessary for fiscal years 2009
through 2014] $13,600,000 for each of fiscal years 2019 through
2024 to pay the cost of--
(A) the maintenance and operation of the College,
including--
(i) basic, special, developmental,
vocational, technical, and special handicapped
education costs;
(ii) annual capital expenditures, including
equipment needs, minor capital improvements and
remodeling projects, physical plant maintenance
and operation costs, and exceptions and
supplemental need account; and
(iii) summer and special interest programs;
(B) major capital improvements, including internal
capital outlay funds and capital improvement projects;
(C) mandatory payments, including payments due on
bonds, loans, notes, or lease purchases;
(D) supplemental student services, including student
housing, food service, and the provision of access to
books and services; and
(E) improving and expanding the College,
including by providing, for the Navajo people
and others in the community of the College--
(i) higher education programs;
(ii) career and technical education;
(iii) activities relating to the
preservation and protection of the
Navajo language, philosophy, and
culture;
(iv) employment and training
opportunities;
(v) economic development and
community outreach; and
(vi) a safe learning, working, and
living environment.
(2) The Secretary shall make payments, pursuant to grants
under this subsection, in advance installments of not less than
40 per centum of the funds available for allotment, based on
anticipated or actual numbers of full-time equivalent Indian
students or such other factors as determined by the Secretary.
Adjustments for overpayments and underpayments shall be applied
to the remainder of such funds and such remainder shall be
delivered no later than July 1 of each year.
(c) The Secretary of the Interior is authorized and directed
to establish by rule procedures to insure that all funds
appropriated under this Act are properly identified for grants
to Dine College and that such funds are not commingled with
appropriations historically expended by the[Bureau of Indian
Affairs] Bureau of Indian Education for programs and projects
normally provided on the Navajo Reservation for Navajo
beneficiaries.
* * * * * * *
----------
GENERAL EDUCATION PROVISIONS ACT
* * * * * * *
Part C--General Requirements and Conditions Concerning the Operation
and Administration of Education Programs; General Authority of the
Secretary
* * * * * * *
Subpart 4--Records; Privacy; Limitation on Withholding Federal Funds
* * * * * * *
protection of the rights and privacy of parents and students
Sec. 444. (a)(1)(A) No funds shall be made available under
any applicable program to any educational agency or institution
which has a policy of denying, or which effectively prevents,
the parents of students who are or have been in attendance at a
school of such agency or at such institution, as the case may
be, the right to inspect and review the education records of
their children. If any material or document in the education
record of a student includes information on more than one
student, the parents of one of such students shall have the
right to inspect and review only such part of such material or
document as relates to such student or to be informed of the
specific information contained in such part of such material.
Each educational agency or institution shall establish
appropriate procedures for the granting of a request by parents
for access to the education records of their children within a
reasonable period of time, but in no case more than forty-five
days after the request has been made.
(B) No funds under any applicable program shall be made
available to any State educational agency (whether or not that
agency is an educational agency or institution under this
section) that has a policy of denying, or effectively prevents,
the parents of students the right to inspect and review the
education records maintained by the State educational agency on
their children who are or have been in attendance at any school
of an educational agency or institution that is subject to the
provisions of this section.
(C) The first sentence of subparagraph (A) shall not operate
to make available to students in institutions of postsecondary
education the following materials:
(i) financial records of the parents of the student
or any information contained therein;
(ii) confidential letters and statements of
recommendation, which were placed in the education
records prior to January 1, 1975, if such letters or
statements are not used for purposes other than those
for which they were specifically intended;
(iii) if the student has signed a waiver of the
student's right of access under this subsection in
accordance with subparagraph (D), confidential
recommendations--
(I) respecting admission to any educational
agency or institution,
(II) respecting an application for
employment, and
(III) respecting the receipt of an honor or
honorary recognition.
(D) A student or a person applying for admission may waive
his right of access to confidential statements described in
clause (iii) of subparagraph (C), except that such waiver shall
apply to recommendations only if (i) the student is, upon
request, notified of the names of all persons making
confidential recommendations and (ii) such recommendations are
used solely for the purpose for which they were specifically
intended. Such waivers may not be required as a condition for
admission to, receipt of financial aid from, or receipt of any
other services or benefits from such agency or institution.
(2) No funds shall be made available under any applicable
program to any educational agency or institution unless the
parents of students who are or have been in attendance at a
school of such agency or at such institution are provided an
opportunity for a hearing by such agency or institution, in
accordance with regulations of the Secretary, to challenge the
content of such student's education records, in order to insure
that the records are not inaccurate, misleading, or otherwise
in violation of the privacy rights of students, and to provide
an opportunity for the correction or deletion of any such
inaccurate, misleading, or otherwise inappropriate data
contained therein and to insert into such records a written
explanation of the parents respecting the content of such
records.
(3) For the purposes of this section the term ``educational
agency or institution'' means any public or private agency or
institution which is the recipient of funds under any
applicable program.
(4)(A) For the purposes of this section, the term ``education
records'' means, except as may be provided otherwise in
subparagraph (B), those records, files, documents, and other
materials which--
(i) contain information directly related to a
student; and
(ii) are maintained by an educational agency or
institution or by a person acting for such agency or
institution.
(B) The term ``education records'' does not include--
(i) records of instructional, supervisory, and
administrative personnel and educational personnel
ancillary thereto which are in the sole possession of
the maker thereof and which are not accessible or
revealed to any other person except a substitute;
(ii) records maintained by a law enforcement unit of
the educational agency or institution that were created
by that law enforcement unit for the purpose of law
enforcement;
(iii) in the case of persons who are employed by an
educational agency or institution but who are not in
attendance at such agency or institution, records made
and maintained in the normal course of business which
relate exclusively to such person in that person's
capacity as an employee and are not available for use
for any other purpose; or
(iv) records on a student who is eighteen years of
age or older, or is attending an institution of
postsecondary education, which are made or maintained
by a physician, psychiatrist, psychologist, or other
recognized professional or paraprofessional acting in
his professional or paraprofessional capacity, or
assisting in that capacity, and which are made,
maintained, or used only in connection with the
provision of treatment to the student, and are not
available to anyone other than persons providing such
treatment, except that such records can be personally
reviewed by a physician or other appropriate
professional of the student's choice.
(5)(A) For the purposes of this section the term ``directory
information'' relating to a student includes the following: the
student's name, address, telephone listing, date and place of
birth, major field of study, participation in officially
recognized activities and sports, weight and height of members
of athletic teams, dates of attendance, degrees and awards
received, and the most recent previous educational agency or
institution attended by the student.
(B) Any educational agency or institution making public
directory information shall give public notice of the
categories of information which it has designated as such
information with respect to each student attending the
institution or agency and shall allow a reasonable period of
time after such notice has been given for a parent to inform
the institution or agency that any or all of the information
designated should not be released without the parent's prior
consent.
(6) For the purposes of this section, the term ``student''
includes any person with respect to whom an educational agency
or institution maintains education records or personally
identifiable information, but does not include a person who has
not been in attendance at such agency or institution.
(b)(1) No funds shall be made available under any applicable
program to any educational agency or institution which has a
policy or practice of permitting the release of education
records (or personally identifiable information contained
therein other than directory information, as defined in
paragraph (5) of subsection (a)) of students without the
written consent of their parents to any individual, agency, or
organization, other than to the following--
(A) other school officials, including teachers within
the educational institution or local educational
agency, who have been determined by such agency or
institution to have legitimate educational interests,
including the educational interests of the child for
whom consent would otherwise be required;
(B) officials of other schools or school systems in
which the student seeks or intends to enroll, upon
condition that the student's parents be notified of the
transfer, receive a copy of the record if desired, and
have an opportunity for a hearing to challenge the
content of the record;
(C)(i) authorized representatives of (I) the
Comptroller General of the United States, (II) the
Secretary, or (III) State educational authorities,
under the conditions set forth in paragraph (3), or
(ii) authorized representatives of the Attorney General
for law enforcement purposes under the same conditions
as apply to the Secretary under paragraph (3);
(D) in connection with a student's application for,
or receipt of, financial aid;
(E) State and local officials or authorities to whom
such information is specifically allowed to be reported
or disclosed pursuant to State statute adopted--
(i) before November 19, 1974, if the allowed
reporting or disclosure concerns the juvenile
justice system and such system's ability to
effectively serve the student whose records are
released, or
(ii) after November 19, 1974, if--
(I) the allowed reporting or
disclosure concerns the juvenile
justice system and such system's
ability to effectively serve, prior to
adjudication, the student whose records
are released; and
(II) the officials and authorities to
whom such information is disclosed
certify in writing to the educational
agency or institution that the
information will not be disclosed to
any other party except as provided
under State law without the prior
written consent of the parent of the
student.
(F) organizations conducting studies for, or on
behalf of, educational agencies or institutions for the
purpose of developing, validating, or administering
predictive tests, administering student aid programs,
and improving instruction, if such studies are
conducted in such a manner as will not permit the
personal identification of students and their parents
by persons other than representatives of such
organizations and such information will be destroyed
when no longer needed for the purpose for which it is
conducted;
(G) accrediting organizations in order to carry out
their accrediting functions;
(H) parents of a dependent student of such parents,
as defined in section 152 of the Internal Revenue Code
of 1986;
(I) subject to regulations of the Secretary, in
connection with an emergency, appropriate persons if
the knowledge of such information is necessary to
protect the health or safety of the student or other
persons;
(J)(i) the entity or persons designated in a Federal
grand jury subpoena, in which case the court shall
order, for good cause shown, the educational agency or
institution (and any officer, director, employee,
agent, or attorney for such agency or institution) on
which the subpoena is served, to not disclose to any
person the existence or contents of the subpoena or any
information furnished to the grand jury in response to
the subpoena; and
(ii) the entity or persons designated in any other
subpoena issued for a law enforcement purpose, in which
case the court or other issuing agency may order, for
good cause shown, the educational agency or institution
(and any officer, director, employee, agent, or
attorney for such agency or institution) on which the
subpoena is served, to not disclose to any person the
existence or contents of the subpoena or any
information furnished in response to the subpoena;
(K) the Secretary of Agriculture, or authorized
representative from the Food and Nutrition Service or
contractors acting on behalf of the Food and Nutrition
Service, for the purposes of conducting program
monitoring, evaluations, and performance measurements
of State and local educational and other agencies and
institutions receiving funding or providing benefits of
1 or more programs authorized under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et
seq.) or the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) for which the results will be reported in
an aggregate form that does not identify any
individual, on the conditions that--
(i) any data collected under this
subparagraph shall be protected in a manner
that will not permit the personal
identification of students and their parents by
other than the authorized representatives of
the Secretary; and
(ii) any personally identifiable data shall
be destroyed when the data are no longer needed
for program monitoring, evaluations, and
performance measurements[; and];
(L) an agency caseworker or other representative of a
State or local child welfare agency, or tribal
organization (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b)), who has the right to access a student's
case plan, as defined and determined by the State or
tribal organization, when such agency or organization
is legally responsible, in accordance with State or
tribal law, for the care and protection of the student,
provided that the education records, or the personally
identifiable information contained in such records, of
the student will not be disclosed by such agency or
organization, except to an individual or entity engaged
in addressing the student's education needs and
authorized by such agency or organization to receive
such disclosure and such disclosure is consistent with
the State or tribal laws applicable to protecting the
confidentiality of a student's education records[.];
and
(M) an institution of postsecondary education in
which the student was previously enrolled, to which
records of postsecondary coursework and credits are
sent for the purpose of applying such coursework and
credits toward completion of a recognized postsecondary
credential (as that term is defined in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3102)), upon condition that the student provides
written consent prior to receiving such credential.
Nothing in subparagraph (E) of this paragraph shall prevent a
State from further limiting the number or type of State or
local officials who will continue to have access thereunder.
(2) No funds shall be made available under any applicable
program to any educational agency or institution which has a
policy or practice of releasing, or providing access to, any
personally identifiable information in education records other
than directory information, or as is permitted under paragraph
(1) of this subsection, unless--
(A) there is written consent from the student's
parents specifying records to be released, the reasons
for such release, and to whom, and with a copy of the
records to be released to the student's parents and the
student if desired by the parents, or
(B) except as provided in paragraph (1)(J), such
information is furnished in compliance with judicial
order, or pursuant to any lawfully issued subpoena,
upon condition that parents and the students are
notified of all such orders or subpoenas in advance of
the compliance therewith by the educational institution
or agency, except when a parent is a party to a court
proceeding involving child abuse and neglect (as
defined in section 3 of the Child Abuse Prevention and
Treatment Act (42 U.S.C. 5101 note)) or dependency
matters, and the order is issued in the context of that
proceeding, additional notice to the parent by the
educational agency or institution is not required.
(3) Nothing contained in this section shall preclude
authorized representatives of (A) the Comptroller General of
the United States, (B) the Secretary, or (C) State educational
authorities from having access to student or other records
which may be necessary in connection with the audit and
evaluation of Federally-supported education programs, or in
connection with the enforcement of the Federal legal
requirements which relate to such programs: Provided, That
except when collection of personally identifiable information
is specifically authorized by Federal law, any data collected
by such officials shall be protected in a manner which will not
permit the personal identification of students and their
parents by other than those officials, and such personally
identifiable data shall be destroyed when no longer needed for
such audit, evaluation, and enforcement of Federal legal
requirements.
(4)(A) Each educational agency or institution shall maintain
a record, kept with the education records of each student,
which will indicate all individuals (other than those specified
in paragraph (1) (A) of this subsection), agencies, or
organizations which have requested or obtained access to a
student's education records maintained by such educational
agency or institution, and which will indicate specifically the
legitimate interest that each such person, agency, or
organization has in obtaining this information. Such record of
access shall be available only to parents, to the school
official and his assistants who are responsible for the custody
of such records, and to persons or organizations authorized in,
and under the conditions of, clauses (A) and (C) of paragraph
(1) as a means of auditing the operation of the system.
(B) With respect to this subsection, personal information
shall only be transferred to a third party on the condition
that such party will not permit any other party to have access
to such information without the written consent of the parents
of the student. If a third party outside the educational agency
or institution permits access to information in violation of
paragraph (2)(A), or fails to destroy information in violation
of paragraph (1)(F), the educational agency or institution
shall be prohibited from permitting access to information from
education records to that third party for a period of not less
than five years.
(5) Nothing in this section shall be construed to prohibit
State and local educational officials from having access to
student or other records which may be necessary in connection
with the audit and evaluation of any federally or State
supported education program or in connection with the
enforcement of the Federal legal requirements which relate to
any such program, subject to the conditions specified in the
proviso in paragraph (3).
(6)(A) Nothing in this section shall be construed to prohibit
an institution of postsecondary education from disclosing, to
an alleged victim of any crime of violence (as that term is
defined in section 16 of title 18, United States Code), or a
nonforcible sex offense, the final results of any disciplinary
proceeding conducted by such institution against the alleged
perpetrator of such crime or offense with respect to such crime
or offense.
(B) Nothing in this section shall be construed to prohibit an
institution of postsecondary education from disclosing the
final results of any disciplinary proceeding conducted by such
institution against a student who is an alleged perpetrator of
any crime of violence (as that term is defined in section 16 of
title 18, United States Code), or a nonforcible sex offense, if
the institution determines as a result of that disciplinary
proceeding that the student committed a violation of the
institution's rules or policies with respect to such crime or
offense.
(C) For the purpose of this paragraph, the final results of
any disciplinary proceeding--
(i) shall include only the name of the student, the
violation committed, and any sanction imposed by the
institution on that student; and
(ii) may include the name of any other student, such
as a victim or witness, only with the written consent
of that other student.
(7)(A) Nothing in this section may be construed to prohibit
an educational institution from disclosing information provided
to the institution under section 170101 of the Violent Crime
Control and Law Enforcement Act of 1994 (42 U.S.C. 14071)
concerning registered sex offenders who are required to
register under such section.
(B) The Secretary shall take appropriate steps to notify
educational institutions that disclosure of information
described in subparagraph (A) is permitted.
(c) Not later than 240 days after the date of enactment of
the Improving America's Schools Act of 1994, the Secretary
shall adopt appropriate regulations or procedures, or identify
existing regulations or procedures, which protect the rights of
privacy of students and their families in connection with any
surveys or data-gathering activities conducted, assisted, or
authorized by the Secretary or an administrative head of an
education agency. Regulations established under this subsection
shall include provisions controlling the use, dissemination,
and protection of such data. No survey or data-gathering
activities shall be conducted by the Secretary, or an
administrative head of an education agency under an applicable
program, unless such activities are authorized by law.
(d) For the purposes of this section, whenever a student has
attained eighteen years of age, or is attending an institution
of postsecondary education, the permission or consent required
of and the rights accorded to the parents of the student shall
thereafter only be required of and accorded to the student.
(e) No funds shall be made available under any applicable
program to any educational agency or institution unless such
agency or institution effectively informs the parents of
students, or the students, if they are eighteen years of age or
older, or are attending an institution of postsecondary
education, of the rights accorded them by this section.
(f) The Secretary shall take appropriate actions to enforce
this section and to deal with violations of this section, in
accordance with this Act, except that action to terminate
assistance may be taken only if the Secretary finds there has
been a failure to comply with this section, and he has
determined that compliance cannot be secured by voluntary
means.
(g) The Secretary shall establish or designate an office and
review board within the Department for the purpose of
investigating, processing, reviewing, and adjudicating
violations of this section and complaints which may be filed
concerning alleged violations of this section. Except for the
conduct of hearings, none of the functions of the Secretary
under this section shall be carried out in any of the regional
offices of such Department.
(h) Nothing in this section shall prohibit an educational
agency or institution from--
(1) including appropriate information in the
education record of any student concerning disciplinary
action taken against such student for conduct that
posed a significant risk to the safety or well-being of
that student, other students, or other members of the
school community; or
(2) disclosing such information to teachers and
school officials, including teachers and school
officials in other schools, who have legitimate
educational interests in the behavior of the student.
(i) Drug and Alcohol Violation Disclosures.--
(1) In general.--Nothing in this Act or the Higher
Education Act of 1965 shall be construed to prohibit an
institution of higher education from disclosing, to a
parent or legal guardian of a student, information
regarding any violation of any Federal, State, or local
law, or of any rule or policy of the institution,
governing the use or possession of alcohol or a
controlled substance, regardless of whether that
information is contained in the student's education
records, if--
(A) the student is under the age of 21; and
(B) the institution determines that the
student has committed a disciplinary violation
with respect to such use or possession.
(2) State law regarding disclosure.--Nothing in
paragraph (1) shall be construed to supersede any
provision of State law that prohibits an institution of
higher education from making the disclosure described
in subsection (a).
(j) Investigation and Prosecution of Terrorism.--
(1) In general.--Notwithstanding subsections (a)
through (i) or any provision of State law, the Attorney
General (or any Federal officer or employee, in a
position not lower than an Assistant Attorney General,
designated by the Attorney General) may submit a
written application to a court of competent
jurisdiction for an ex parte order requiring an
educational agency or institution to permit the
Attorney General (or his designee) to--
(A) collect education records in the
possession of the educational agency or
institution that are relevant to an authorized
investigation or prosecution of an offense
listed in section 2332b(g)(5)(B) of title 18
United States Code, or an act of domestic or
international terrorism as defined in section
2331 of that title; and
(B) for official purposes related to the
investigation or prosecution of an offense
described in paragraph (1)(A), retain,
disseminate, and use (including as evidence at
trial or in other administrative or judicial
proceedings) such records, consistent with such
guidelines as the Attorney General, after
consultation with the Secretary, shall issue to
protect confidentiality.
(2) Application and approval.--
(A) In general.--An application under
paragraph (1) shall certify that there are
specific and articulable facts giving reason to
believe that the education records are likely
to contain information described in paragraph
(1)(A).
(B) The court shall issue an order described
in paragraph (1) if the court finds that the
application for the order includes the
certification described in subparagraph (A).
(3) Protection of educational agency or
institution.--An educational agency or institution
that, in good faith, produces education records in
accordance with an order issued under this subsection
shall not be liable to any person for that production.
(4) Record-keeping.--Subsection (b)(4) does not apply
to education records subject to a court order under
this subsection.
* * * * * * *
MINORITY VIEWS
H.R. 4508, the Promoting Real Opportunity, Success, and
Prosperity through Education Reform Act (PROSPER Act) amends
the Higher Education Act of 1965 (HEA) to make quality higher
education less accessible and more expensive. H.R. 4508 makes
financing a college education harder for low- and middle-income
students, dramatically reducing available grant aid and making
student loans more expensive. The Congressional Budget Office
(CBO) estimates that H.R. 4508 will reduce direct spending in
the Pell Grant and Student Loan programs by $14.6 billion over
ten years. While the bill makes college less affordable, it
makes federal student aid more generous for for-profit
institutions, at the expense of taxpayers and students. H.R.
4508 eliminates necessary guardrails and dilutes consumer
protections that safeguard students and taxpayers. H.R. 4508
expands and creates loopholes that will allow ineligible
providers access to federal student aid without adequate
oversight to ensure quality, and in some cases, even without
compliance with any federal law.
The bill seeks to fundamentally upset the nation's system
of higher education to provide the private sector with
unprecedented access to taxpayer dollars while providing only
low-cost training for future employees. In total, H.R. 4508
exacerbates inequity in higher education by solidifying a two-
tiered system: four-year and graduate degrees for wealthy
students and families, and unregulated job-training programs
with little guarantee of quality or outcomes for those without
means. The bill also undermines the viability of programs
supporting Historically Black Colleges and Universities (HBCUs)
and other minority-serving institutions (MSIs), and eliminates
a key funding source for community colleges.
Aside from its sweeping and harmful overhaul of federal
student aid to make college more expensive, H.R. 4508 does
little to address crucial issues in higher education. The bill
fails to advance policies that address campus hazing, racial
violence and intimidation, or campus sexual assault. It is
silent on the plight of thousands of American Dreamer
students--working or attending school now without access to
federal student aid or a path to long-term, legal stability in
the only country they have ever called home. The bill does
nothing to curb excessive student loan debt collection
practices. H.R. 4508 fails to address the unique needs of
students with disabilities or foster and homeless youth, who we
know are accessing higher education at higher levels than ever
before. Wherever possible, H.R. 4508 takes a myopic approach
contrary to research and advocacy work focused on the needs of
the nation's most vulnerable students.
BACKGROUND ON HEA AND THE FLAWED, PARTISAN CONSIDERATION OF H.R. 4508
Congress, on a bipartisan basis, passed HEA ``to strengthen
the educational resources of our colleges and universities and
to provide financial assistance for students in postsecondary
and higher education.''\1\ When President Lyndon B. Johnson
signed the HEA into law, he stated that ``[This] means that a
high school senior, anywhere in this great land of ours, can
apply to any college or any university in any of the 50 states
and not be turned away because his family is poor.''\2\ The law
was amended in numerous Congresses, historically on a
bipartisan basis--until now.
---------------------------------------------------------------------------
\1\Pub. L. No. 89-329, 79 Stat. 1219 (codified as amended at 20
U.S.C. Sec. 1001 (2012)).
\2\President Lyndon Johnson, Remarks on Signing the Higher
Education Act of 1965, SW Tex. St. Coll. (Nov. 8, 1965), available at
http://www.txstate.edu/commonexperience/pastsitearchives/2008-2009/
lbjresources/higheredact.html.
---------------------------------------------------------------------------
Committee Democrats first learned of the contents of H.R.
4508 on November 29, 2017 when the Wall Street Journal
published a series of online articles outlining key policies
included in the bill.\3\ Committee Republicans unilaterally
drafted the 542-page bill that was shared with Committee
Democrats only mere minutes before the bill was formally
introduced in the House. Four legislative days after the
introduction of H.R. 4508 (and 24 hours before the markup of
the bill), Committee Republicans shared a 590-page Amendment in
the Nature of a Substitute that made not only technical changes
to the bill, but also significant policy revisions to the
underlying bill.
---------------------------------------------------------------------------
\3\Douglas Belkin et al., House GOP to Propose Sweeping Changes to
Higher Education, Wall St. J., Nov. 29, 2017 available at https://
www.wsj.com/articles/house-gop-to-propose-sweeping-changes-to-higher-
education-1511956800.
---------------------------------------------------------------------------
Contrary to statistics cited by Committee Republicans
during the markup of H.R. 4508, the consideration of the bill
was a significant departure from the bipartisan approach of the
previous comprehensive reauthorization of the HEA.\4\ During
the markup of H.R. 4508, the Chairwoman noted that the last
full-scale reauthorization bill was introduced on November 9,
2007 and reported out of Committee on November 15, 2007, when
Democrats held the majority. While true, the Committee had held
12 hearings (four full committee and eight subcommittee)
regarding higher education in the first session of the 110th
Congress.\5\ In contrast, Committee Republicans in the 115th
Congress have only held four hearings (two full committee-level
and two subcommittee-level) on higher education.\6\
---------------------------------------------------------------------------
\4\Higher Education and Opportunity Act, Pub. L. No. 110-315, 122
Stat. 3078 (2008).
\5\H.R. Rep. No. 110-500, pt. 1, at 211.
\6\Committee Republicans claim that the Committee held six hearings
on higher education issues during the first session of the 115th
Congress. They come to this number by including the Higher Education
and Workforce Development Subcommittee hearing, ``Expanding Options for
Employers and Workers Through Earn-and-Learn opportunities, held on
July 26, 2017. Although the topics discussed at that hearing relate to
Title II of H.R. 4508, Committee Democrats note that those issues are
not in the traditional scope of HEA, and are better addressed in other
bills under the jurisdiction of the committee. See infra Part ``H.R.
4508 Abandons Teachers, While Disguising Low-Quality Job Training
Programs as Apprenticeships.'' Committee Republicans also include the
full Committee hearing title ``public-Private Solutions to Educating a
Cyber Workforce'' held on October 24, 2017.
---------------------------------------------------------------------------
Committee Republicans claim hearings held in previous
Congresses informed the development of H.R. 4508. However, many
higher education issues that were considered in previous
Congresses are either no longer pertinent today, or have not
been examined by the Committee with the consideration of new
research and evidence in the field that could inform the
reauthorization process. Additionally, nearly a third of
current Committee members are new to the Education and
Workforce Committee as of the 115th Congress, including eight
new Republican members and five new Committee Democrats who did
not take part in hearings held during previous Congresses.
Committee Democrats dispute the suggestion that a third of the
Committee provided meaningful input on nearly 600 pages of
legislative text over the course of limited Committee
proceedings on issues of higher education during this session
of Congress.
The differences in Committee process for development and
consideration of a comprehensive HEA reauthorization under the
Democratic majority in 2007 and the current Republican majority
are reflected in the markup hearings for each bill. In 2007,
Democrats in the Committee majority accepted 12 Republican
amendments and rejected five on recorded votes.\7\ The final
bill was reported out by the Committee unanimously, 45-0.\8\ In
contrast, in 2017 only two amendments by Committee Democrats
were adopted, and 35 were defeated by recorded vote. Without
any meaningful input by Committee Democrats, H.R. 4508 was
reported out of Committee without any Democratic votes. H.R.
4508's abandonment of the core purposes of HEA--to make higher
education more affordable, more accessible, and to aid
completion--is emblematic of a flawed and partisan process.
---------------------------------------------------------------------------
\7\H.R. Rep. No. 110-500, pt. 1, at 214-18, 368-75.
\8\H.R. Rep. No. 110-500, pt. 1, at 375.
---------------------------------------------------------------------------
H.R. 4508 MAKES COLLEGE MORE EXPENSIVE
A college education remains the most successful force for
upward economic mobility in America.\9\ The original HEA and
subsequent reauthorizations were designed to increase access to
higher education for all students, including historically
marginalized populations, by federal investments to make higher
education more affordable. According to 2015 data, 61 percent
of Black and 65 percent of Hispanic Recent High School
Graduates are immediately enrolling in postsecondary education
after high school, increases of 52 percent and 23 percent
respectively from 1975.\10\ While efforts have resulted in more
low-income and students of color accessing and completing
higher education since 1965, significant challenges remain.
---------------------------------------------------------------------------
\9\Haskins, R., Education and Economic Mobility, (2016: The
Brookings Institution) available at https://www.brookings.edu/wp-
content/uploads/2016/07/02_economic_mobility_sawhill_ch8.pdf.
\10\Jennifer Ma, Matea Pender, and Meredith Welch, Education Pays
2016, (2016: The College Board) available at https://
trends.collegeboard.org/sites/default/files/education-pays-2016-full-
report.pdf.
---------------------------------------------------------------------------
Tuition increases coupled with State disinvestment have
forced students and their families to shoulder a greater
portion of the cost of college. Over the last ten years, in-
State tuition and fees at public four-year institutions
increased at an average rate of 3.2 percent per year beyond
inflation (2.8 percent at two-year public colleges and 2.4
percent at four-year private non-profit institutions).\11\ The
average State appropriation per full-time equivalent (FTE)
student fell by 26 percent during the Great Recession.\12\
While many States are attempting to rebound from low spending
levels, the connection between State funding and college costs
is both cyclical and correlational; it would take multiple
years of increased public investments in higher education (with
such investments assuredly directed to addressing college
costs) to actually lower the cost of college. Until that day
comes, students are forced to make up the balance through
student loans. A responsible reauthorization of HEA would
recognize and address the reality that a crippling share of the
burden to fund higher education has fallen on America's working
families in a time of stagnant wages. Unfortunately, H.R. 4508
takes the opposite approach.
---------------------------------------------------------------------------
\11\Jennifer Ma et al., Trends in College Pricing 2017, (2017: The
College Board) 13.
\12\Jennifer Ma et al., Trends in College Pricing 2016, (2016: The
College Board) 24.
---------------------------------------------------------------------------
Disguised by the catchy tagline of ``One Grant, One Loan,
One Work-Study,'' H.R. 4508 reduces federal investments in
higher education and shifts benefits of federal student aid
vehicles away from low-income students. The bill eliminates
multiple grant programs, loan subsidies, and repayment and
forgiveness options. Taken in total, the bill reduces available
resources that make higher education more affordable in the
name of ``simplicity.'' The result is H.R. 4508 forces students
to borrow more, pay more for those loans, and pay more to repay
those loans.
Pell Grants
H.R. 4508 does nothing to strengthen the Pell Grant
program, the cornerstone of federal student aid. While
Democrats successfully championed historic increases in the
Pell Grant through the American Reinvestment and Recovery Act
of 2009 and the Student Aid and Fiscal Responsibility Act of
2010, those investments have not kept pace with rising
costs.\13\ In 1975, the maximum Pell Grant covered nearly 80
percent of the cost of attendance at a public four-year
school.\14\ The maximum Pell Grant award in 2016-17 ($5,815)
covers just 29 percent of average tuition, fees, room and board
at an in-State, four-year public university; the average Pell
Grant award ($3,724) would cover just 19 percent of such
costs.\15\ Thus, Pell Grant recipients are more than twice as
likely to borrow federal dollars as their peers.\16\ This is at
a time when the Pell Grant program maintains a reserve of
appropriated program funding that Committee Democrats believe
should be used to increase the average and maximum awards.\17\
HEA reauthorization is a valuable opportunity to restore the
purchasing power and elevate the purpose of the Pell Grant
program.
---------------------------------------------------------------------------
\13\In ARRA (P.L. 111-5), Congress provided an additional $17.1
billion for the Pell program, which increased the maximum award from
$4,850 to $5,350 in 2009. In SAFRA (part of Health Care and Education
Reconciliation Act of 2010, P.L. 111-152), the maximum was increased to
$5,500 with increases indexed to inflation through 2018.
\14\Spiros Protopsaltis and Sharon Parrott, Pell Grants--a Key Tool
for Expanding College Access and Economic Opportunity--Need
Strengthening, Not Cuts, Ctr. for Budget and Policy Priorities (July
27, 2017), available at https://www.cbpp.org/research/federal-budget/
pell-grants-a-key-tool-for-expanding-college-access-and-economic-
opportunity.
\15\Sandy Baum et al., Trends in Student Aid 2016, (2016: The
College Board) 27.
\16\The Institute for College Access and Success, Pell Grants Help
Keep College affordable for Millions of Americans, last updated Apr. 6,
2016, available at http://ticas.org/sites/default/files/pub_files/
overall_pell_one-pager.pdf.
\17\The Pell Scoring Rule allows the Pell Grant Program to run
surpluses (or deficits) from year to year and credit gains (or debit
losses) against appropriations in the subsequent fiscal year. According
to the June 2017 CBO baseline, the Pell Grant account has a current
cumulative surplus of $8.6 billion. https://www.cbo.gov/sites/default/
files/recurringdata/51304-2017-01-pellgrant.pdf.
---------------------------------------------------------------------------
Instead, H.R. 4508 reduces available grant aid for students
across the board. Under the GOP's ``One Grant, One Loan, One
Work-Study'' mandate, the bill eliminates all other grants,
making Pell the sole source of federal grant aid for low-income
students. H.R. 4508 not only does nothing to increase the
purchasing power of Pell, it also weakens the program. By
expanding Pell eligibility to more low quality, short-term
programs with little federal oversight to ensure quality, H.R.
4508 increases both the demand on Pell and the chance that Pell
dollars will fund programs and credentials with little value in
the workplace. CBO estimates that H.R. 4508 will increase Pell
direct spending by $13.4 billion and discretionary spending by
$69.9 billion over 10 years. Despite the bill's significant
expansion of program eligibility and the elimination of other
grant aid sources, H.R. 4508 makes no improvements to Pell
funding; it fails to increase mandatory Pell funding, does not
increase the maximum Pell Grant award, and provides noyearly
inflationary adjustments for the Pell Grant award. In sum, H.R. 4508
dramatically expands the cost of the Pell Grant program but does
nothing to improve the purchasing power of the grant to defray the cost
of college for low-income students.
H.R. 4508 would increase financial uncertainty for the most
vulnerable students by requiring Pell (along with all other
federal student aid) to be disbursed in small weekly or monthly
increments. This ``Aid Like a Paycheck'' policy gives
institutions the power not only to allocate aid on a weekly or
monthly basis, but also to adjust and disburse unequal award
amounts across payment periods. This program change would cause
unnecessary hardship for the lowest income students who rely on
Pell to support not only their institutional enrollment but
also their livelihood while in college.
The bill's only Pell policy innovation is the ``Pell
bonus,'' a well-intentioned but misguided proposal that lacks
sufficient evidence of effectiveness and disadvantages non-
traditional students. The bill authorizes a bonus award of up
to $300, only for students on track to complete 30 credit hours
or the equivalency for the academic year. This ``bonus'''
essentially creates a new maximum award for a more-than-full-
time workload, leaving behind millions of low-income students
who do not enroll full time. Data show that part-time students
comprise nearly 40 percent of undergraduate student enrollment,
and they struggle disproportionately with completion.\18\
Unfortunately, part-time enrollment is the only option for many
students juggling their education along with work, child/
dependent care, and a host of other draws on their time. For
these students, a yearly bonus of merely $300 is not enough to
incentivize full-time enrollment, so the Pell bonus does
nothing to improve college affordability for them. To make
matters worse, H.R. 4508 earmarks the few mandatory dollars
remaining in the Pell program to fund the bonus. This fact, in
combination with changes to program eligibility and the long
documented history of fraud and abuse by for-profit
institutions\19\ are a recipe for disaster. Committee Democrats
fear that H.R. 4508 will lead to a proliferation of low-quality
programs that will drain a disproportionate amount of mandatory
Pell funds, leaving the program in poor fiscal shape. Committee
Democrats joined with three Committee Republicans to vote in
favor of an amendment offered by Mr. Grothman (R-WI) to strike
the Pell bonus from the bill. The amendment failed by a vote of
20-20, but exposed bipartisan opposition to the Pell bonus.
---------------------------------------------------------------------------
\18\ 1ASee e.g., The Education Trust, Advancing by Degrees: A
Framework for Increasing College Completion 2 (Apr. 2010) (``There are
also patters of enrollment that make it difficult to accumulate
credits, most notably part-time attendance and stopping out, both of
which are consistently found to reduce the likelihood of retention and
degree completion.'').
\19\Robert Shireman, The For-Profit College Story: Scandal,
Regulate, Forget, Repeat, (Jan 24, 2017) available at https://tcf.org/
content/report/profit-college-story-scandal-regulate-forget-repeat/.
---------------------------------------------------------------------------
Finally, H.R. 4508 elevates the issue of ``Pell fraud'' by
blaming students for program waste, fraud, and abuse despite
evidence to the contrary. The most recent data from the U.S.
Department of Education state that only 2.16 percent of
undergraduate federal financial aid applicants are flagged for
unusual enrollment history--a pattern that is often considered
evidence of fraud.\20\ Despite the overall low incidence rate,
there are some individual institutions where as many as 35
percent of students are flagged for unusual enrollment
history.\21\ This suggests the problem is not one of students
(or institutions) generally, but instead a problem of specific
institutions (or specific to certain institutional structures)
that are disproportionately enrolling students attempting to
commit fraud. Unfortunately, H.R. 4508's only provisions to
combat fraud target students and do nothing to address these
outlier institutions. Simultaneously, H.R. 4508 both removes
meaningful consumer and taxpayer protections designed to
prevent fraud committed by predatory institutions like the now-
closed ITT Tech and Corinthian Colleges and also limits the
ability of ED to implement rules to assist defrauded students
and recoup taxpayer funds in these situations.
---------------------------------------------------------------------------
\20\Department of Education 2016-17 Unusual Enrollment History data
obtained by CRS, December 28, 2017.
\21\Id.
---------------------------------------------------------------------------
Rep. Susan Davis, Ranking Member of the Subcommittee on
Higher Education and Workforce Development, introduced an
amendment to make comprehensive improvements to the Pell Grant
program. The amendment sought to restore Pell's purchasing
power by increasing the maximum Pell Grant award by $500 and
permanently indexing the award to inflation. To insulate Pell
from budget battles, the amendment sought to shift program
funding entirely to the mandatory side of the budget ledger.
The amendment also sought to allow previously defrauded
students to gain or regain access to aid. Recognizing the needs
of today's students and workforce, the amendment sought to
allow for the use of Pell Grant funds for quality short-term
programs. Lastly, the amendment sought to require institutional
reporting on Pell fraud to identify institutions that are most
vulnerable to fraud. The Davis Pell Grant amendment was
defeated on a party-line vote.
Student loans
In recent years, efforts to increase affordability in the
student loan program have centered on reforming the federal
Direct Loan program and ensuring that students have affordable
options to repay their student loans. Congressional Democrats
led the charge for the move to direct lending away from
private, federally guaranteed loans, the creation of income-
driven repayment plans, and the establishment of the Public
Service Loan Forgiveness (PSLF) program. These innovations
signaled to student borrowers that, regardless of their
financing needs, they had multiple options to ensure manageable
student debt and a light at the end of the tunnel. Committee
Democrats believe that a responsible HEA reauthorization must
streamline the multiple income-driven repayment plans into one
more accessible income-based repayment plan (IBR), increase
protections for borrowers, and include more equitable loan
terms to allow for additional refinancing or forgiveness
options. H.R. 4508 took a different path.
To create a new ``ONE Loan,'' H.R. 4508 consolidates all
currently available loan products into a more expensive federal
student loan, while simultaneously weakening the student loan
safety net for the lowest-income borrowers. The bill
establishes less favorable loan terms by eliminating the
undergraduate loan subsidy, removes the benefits of IBR for the
lowest-income borrowers, caps parent and graduate loans, and
eliminates the PSLF program. CBO estimates that these changes
will take $58.5 billion out of federal student aid over the
next 10 years, money that borrowers currently depend on to make
college more affordable.
Currently, nearly six million eligible student borrowers
with financial need receive subsidized federal loans that do
not accrue interest while the student is enrolled. While there
are yearly and aggregate caps on the amount of the subsidy, it
helps defray the cost of borrowing for students. H.R. 4508's
``ONE Loan'' is unsubsidized. This has disastrous implications
for the average student, let alone one heavily reliant on
loans. Analysis by the American Council on Education found that
``An undergraduate student who borrows $19,000 over four years
and makes all payments on time would see a 44 percent increase
in the cost of the loan. A student who attends for five years
and borrows $23,000 would see a 56 percent increase.''\22\
---------------------------------------------------------------------------
\22\Letter from Ted Mitchell, President, American Council on
Education, to Reps. Foxx and Scott (Dec. 11, 2017), avaiable at http://
www.acenet.edu/news-room/Documents/Letter-PROSPER-Act-Markup.pdf.
---------------------------------------------------------------------------
H.R. 4508 places limits on the amount parents and graduate
students can borrow to fund higher education via the PLUS loan
program. While on its face this may seem like a noble attempt
to rein in college costs, in reality this policy will only
drive parents and graduate students to the private loan market
to finance higher education. Private student loans lack the
protections of federal loans and lenders may discriminate based
on income, field of study, or other student factors. Committee
Democrats proudly championed the removal of private lenders
from the federal student loan market in 2010, and H.R. 4508, in
the name of ``cost containment'' is inviting private lenders
back into the mix.
Further, the ``One Loan'' mandate of H.R. 4508 creates a
single IBR plan that preferences upper-income borrowers and is
far less generous than IBR plan options under current law. The
new IBR plan would create uncertainty for low-income families
by increasing the percent of borrower discretionary income used
to repay loans, including a statutory minimum for monthly
payments, and severely limiting loan forgiveness. The bill
increases the discretionary income used to calculate a
borrower's IBR payment from 10 percent to 15 percent of their
income. This change creates the greatest hardship for low-
income families struggling with student loan debt where a
difference of 5 percent of income is most visible. While
current law allows low-income borrowers to have a payment as
low as $0, H.R. 4508 imposes a $25 minimum monthly payment.
Committee Democrats fear this provision will send the most
vulnerable borrowers into default.
The bill also removes any certainty of loan forgiveness
(referred to as `cancelation' in H.R. 4508) for borrowers
enrolled in the program's one IBR plan. Unlike current law that
includes forgiveness of existing loan debt after 20-25 years of
payments for income-driven repayment plans, H.R. 4508 bases
eligibility for forgiveness on the amount repaid, regardless of
a borrower's length of time in repayment. This would have a
disproportionate impact on the lowest income individuals. For
example, under H.R. 4508, it could take a low-income borrower
with just $30,000 in student loan debt 138 years in IBR before
he or she qualified for loan forgiveness.\23\ H.R. 4508's
changes to IBR ensure that upper income borrowers reap the
greatest benefit from a repayment vehicle intended to help low-
income borrowers.
---------------------------------------------------------------------------
\23\ 1AStatement of Persis Yu, Director of Student Loan Borrower
Assistance Project, National Consumer Law Center, available at https://
www.nclc.org/media-center/house-edu-bill-ends-student-protections-
lifetime-debt.html.
---------------------------------------------------------------------------
The bill also eliminates PSLF for new borrowers in the ONE
Loan program, despite overwhelming popularity of the program.
PSLF, created in 2007, rewards students who forgo employment in
the private sector to take jobs in public service. Under
current law if a borrower makes 10 years of payments while
employed in a public service job (e.g., teacher, nurse, police
officer), they are eligible to receive forgiveness on whatever
portion of their loan remains after the 10 years of payments.
H.R. 4508 makes no improvement to the process of loan
rehabilitation and default. Independent analysis has found that
student loan rehabilitation programs are not serving students
and filling the coffers of debt collectors. According to the
Consumer Financial Protection Bureau (CFPB) nearly one in three
borrowers who goes through the loan rehabilitation process will
default again.\24\ There is no real check to ensure that debt
collectors shepherding borrowers through the rehabilitation
process are working in the best interest of the borrower.
Additionally, with Obama-era guidance rescinded under the Trump
administration, debt collectors can again charge exorbitant
fees (up to 16 percent of principal and interest) for the
rehabilitation process that often leads borrowers back into
default. H.R. 4508's solution is to allow these borrowers to go
through a broken rehabilitation process for a second time.
---------------------------------------------------------------------------
\24\Consumer Financial Protection Bureau, Annual Report of the CFPB
Student Loan Ombudsman 4 (2016).
---------------------------------------------------------------------------
Finally, H.R. 4508 includes language that would exempt
companies contracted by the Department of Education to service
student loans and collect on defaulted loans from enforcement
under State and local law. States have a well-established role
in protecting their residents from fraudulent and abusive
practices, and several States have used this authority to take
legal action to protect consumers. This provision is an
overreach of federal education law, as it preempts the
authority of State and local authorities from engaging in
oversight to protect their postsecondary students and consumers
from fraud and abuse.
Committee Democrats introduced several amendments to
improve and make more equitable the loan-related provisions of
H.R. 4508. Reps. Bonamici, Takano, and Wilson introduced an
amendment to strike the ONE Loan program created by H.R. 4508
and reinstate the existing Direct Loan program, making
subsidized loans and PSLF available to these borrowers. Because
Committee Democrats also believe HEA reauthorization must
simplify federal student aid, the amendment also sought to
streamline the multitude of existing repayment plans into one
fixed repayment plan and one IBR plan that better serves low-
income borrowers. Further, this amendment requires new
borrowers to undergo annual counseling while streamlining the
loan disclosures currently mandated in HEA, and enhances
entrance and exit counseling. This amendment also sought to
eliminate origination fees on federal student loans and require
a borrower's prepayment amount to be applied first toward
outstanding fees. Additionally, this amendment sought to strike
state preemption language from the ONE Loan, strengthen
consumer protections and protect student loan borrowers from
the severe consequences of default. The Bonamici amendment was
rejected along party lines.
Rep. Courtney offered an amendment to allow new ONE Loan
borrowers to be eligible for PSLF and extend PSLF eligibility
to farmers and employees of veteran service organizations.
While the amendment was not adopted, it was supported by two
Committee Republicans evidence of the bipartisan opposition to
the Republican proposal to eliminate this important program.
Rep. Grijalva offered an amendment to stop the garnishment of
Social Security benefits to pay student loans. The amendment
was ruled non-germane. Rep. Courtney also offered an amendment
to give current student loan borrowers an opportunity to
refinance their debt at the same low rates offered to new
borrowers this school year. The amendment also allowed
borrowers in H.R. 4508's ONE Loan to refinance should rates
decrease in future years. The amendment also allowed private
student loan borrowers who are in good standing to refinance
private student loans at lower federal student loan rates.
While the amendment was not adopted, Mr. Grothman joined with
Committee Democrats to vote in favor of the amendment.
Campus-based aid
Again, in the name of ``simplification,'' H.R. 4508
eliminates campus-based aid programs that provide students with
additional sources of funding for their education. H.R. 4508
completely eliminates two campus-based aid programs: the
Federal Supplemental Educational Opportunity Grant (FSEOG) and
the Perkins Loan program. By eliminating FSEOG and failing to
restore the Perkins Loan program, H.R. 4508 makes college more
expensive for students and working families. Although H.R. 4508
nearly doubles the federal allocation for the Federal Work-
Study (FWS) program and makes equitable changes that improve
the program's allocation formula, the totality of the bill's
changes to campus-based aid programs negates those
improvements.
H.R. 4508 makes additional changes to the FWS program that
Committee Democrats fear would result in increased costs to
students. Under H.R. 4508, graduate students are barred from
participation in FWS, removing another source of federal
student aid for these students and driving them to the private
market to finance their education. H.R. 4508 also requires a
larger investment from participating institutions and allows
less FWS money to be used to fund students directly. Currently,
institutions are required to pay 25 percent of a student's
compensation but H.R. 4508 requires institutions to double
their share. At the same time, H.R. 4508 removes a 25 percent
cap on how much Federal money can be spent to operate FWS
programs at private companies.
While Committee Democrats believe there is some benefit to
off-campus employment, especially in a student's final academic
years, research shows that new students benefit from
institutional connectedness derived from on-campus
employment.\25\ These changes would limit aid available for
students, send more federal money to private companies that
have no track record of success, and create an incentive for
for-profit institutions to participate in the program,
especially if such institution is owned by a corporation that
also holds non-institutional entities. Lastly, H.R. 4508
allocates additional FWS dollars to reward institutions based
on success in serving low-income students. Committee Democrats
do not oppose this program improvement, but do oppose H.R.
4508's provision to divide the additional funds by sector, as
to do so effectively guarantees that for-profit institutions
with poorer track records of serving Pell students will receive
bonus funds while non-profit institutions with better track
records will not receive additional federal dollars.
---------------------------------------------------------------------------
\25\Melisa J. Beeson & Roger D. Wessel, The Impact of Working on
Campus on the Academic Persistence of Freshmen, 32 J. OF STUD. FIN. AID
37 (2002) available at: http://publications.nasfaa.org/jsfa/vol32/iss2/
3.
---------------------------------------------------------------------------
Rep. Bonamici offered an amendment to strike and replace
H.R. 4508's campus-based aid provisions with provisions to
strengthen the federal commitment to campus-based aid and to
the low-income students served by these important programs. The
amendment sought to restore FSEOG, reauthorize the Perkins Loan
program, and make improvements to FWS by building upon program
reforms made in the underlying bill and restoring eligibility
for graduate students to participate in the program. The
amendment was rejected on a party line vote.
Federal--State partnerships
In addition to strengthening federal student aid, Committee
Democrats firmly believe that HEA reauthorization must include
a mechanism to incentivize state investment in higher
education.
Sustained public investment via a Federal-State partnership
would slow growth in college costs and make higher education
more affordable. Committee Democrats believe such a partnership
is also necessary to drastically reduce the financial burden of
higher education on working families, as the majority of
postsecondary students attend public two- and four-year
nonprofit colleges and universities.
In 2015, President Barack Obama first proposed America's
College Promise, a plan to provide up to two years of tuition-
and fee-free community college in partnership with States.
Modeled after America's College Promise, Ranking Member Scott
offered an amendment to H.R. 4508 to use federal funds to
provide direct grant aid to States to leverage reforms, a
maintenance of state investment in higher education, and to
make an associate's degree free for every student. The
amendment also sought to provide grant aid to low-income
students who transfer from a community college to an MSI for
the remainder of their degree. The amendment was not adopted by
the Committee.
H.R. 4508 IS A CASH WINDFALL FOR-PROFIT INSTITUTIONS
H.R. 4508 provides unprecedented financial support for for-
profit institutions of higher education (IHE) and other
corporate interests. Committee Democrats find this troubling,
especially given the documented history of failures in the for-
profit industry which includes disproportionately high levels
of student loan default; grossly expensive programs that result
in little to no financial benefit for students; high-pressure
sales tactics designed to entice students (and their federal
aid dollars); and the receipt of hundreds of millions of
dollars in federal student aid due in part to fraud or
misrepresentation.
Committee Democrats recognize that the needs of students
and employers are changing and higher education and the laws
that govern it must be responsive to those changes. However,
H.R. 4508 changes long-standing definitions in HEA that have
implications beyond higher education. The bill eliminates
regulations that protect the interests of students and
taxpayers, and puts the short-term needs of industry ahead of
the long-term needs of students and our country. Further, the
bill significantly changes how accreditors grant accreditation
to IHEs making it much easier for for-profit institutions to
get away with harmful practices. CBO estimates that seven
different proposals in H.R. 4508 that will disproportionately
benefit for-profit IHEs would cost taxpayers a total of $9.1
billion over ten years. Finally, H.R. 4508 ties the hands of
the Department of Education by prohibiting it from setting
meaningful compliance standards through regulation.
The Case for the Regulation of For-Profit IHEs
Evidence of waste, fraud, and abuse of federal funds by the
for-profit sector has existed since the passage of the GI Bill
in 1944. Under the Truman and Eisenhower Administrations,
Congress authorized legislation in between 1948 and 1952 that
tightened access to GI Bill funds by the for-profit sector.
Wanting to avoid similar abuse seen with the GI Bill program,
the Higher Education Act of 1965 excluded for-profit
institutions from the federal loan guarantee program it
created, but these institutions were allowed to access a much
smaller vocational school loan program.\26\ However, when the
two programs were merged in 1968, for-profits gained access to
the larger loan program in the Higher Education Act. The
country then saw an exponential growth of for-profit IHEs
following Congress' decision to allow these institutions to
access Title IV funds in the 1972 reauthorization of HEA.
Incidents of fraud and abuse highlighted systemic problems, and
in 1975, the Department of Health, Education, and Welfare
issued regulations to review schools where high percentages of
students were taking out student loans and ensure vocational
schools were making certain consumer disclosures.\27\
---------------------------------------------------------------------------
\26\The Century Foundation, Vietnam Vets and a New Student Loan
Program Bring New College Scams, (Feb. 13, 2017) available at https://
tcf.org/content/report/vietnam-vets-new-student-loan-program-bring-new-
college-scams/.
\27\Center on Budget and Policy Priorities, Protecting Students and
Taxpayers: Why the Trump Administration Should Heed History of
Bipartisan Efforts, available at https://www.cbpp.org/research/federal-
budget/protecting-students-and-taxpayers#_ftnref12.
---------------------------------------------------------------------------
Following successful efforts to weaken federal regulations,
the sector experienced a 600 percent student enrollment
increase between 1990 and 2010. There is a litany of evidence
that for-profit IHEs are disproportionately a bad bet for
students, even dating back to these earlier years.\28\ For
example, in 1990, when cohort default rates were at an all-time
high, for-profit institutions had a default rate nearly twice
as high as the overall rate (41 percent compared with 22
percent, respectively). A 1997 Government Accountability Office
(GAO) investigation found a strong negative correlation between
for-profit institutional reliance on Title IV funds and student
completion, placement rates, and student loan defaults. Simply
put: for-profit institutions deriving the most revenue from
federal student aid dollars had the worst student outcomes.
GAO's investigation exposed a for-profit sector-specific
failure to educate and prepare students for workforce entry, at
a grave cost to taxpayers. Further, GAO and the Department of
Education's Office of the Inspector General (OIG) found that
for-profit institutions were disproportionately recruiting low-
income students, leading Congress to impose additional
oversight of the for-profit sector. Yet, systematic abuse
within this sector remains today. Despite these findings, 1996,
1998, 2002 and 2006 brought deregulation of the for-profit
sector resulting in four major protections that were either
weakened or eliminated.\29\
---------------------------------------------------------------------------
\28\Congressional Research Service. Examination of the Current 90/
10 Rule and Its Legislative and Regulatory History. January 25, 2011.
\29\Center on Budget and Policy Priorities. Protecting Students and
Taxpayers: Why the Trump Administration Should Heed History of
Bipartisan Efforts. https://www.cbpp.org/research/federal-budget/
protecting-students-and-taxpayers#_ftnref12
---------------------------------------------------------------------------
While the precipitous closures of Corinthian Colleges, Inc.
in 2015 and ITT Tech in 2016 are glaring examples of the
systematic abuse within this sector,\30\ abusive practices
within the for-profit sector are not solely at the work of
singular bad actors. In a January 2017 report, the Center for
Investigative Reporting found that ``over the past decade,
there have been at least 65 State and Federal investigations
against for-profit colleges. More than 25 of these
investigations have ended in court settlements or judgments
worth over $1.5 billion.''\31\
---------------------------------------------------------------------------
\30\For an in-depth account by Congress of some of the worst abuses
in the for-profit industry, see For Profit Higher Education: The
Failure to Safeguard the Federal Investment and Ensure Student Success,
a report produced by the Senate Committee on Health, Education, Labor
and Pensions (HELP), the product of a two-year investigation by the
Committee from 2010-2012. Available at https://www.help.senate.gov/imo/
media/for_profit_report/PartI.pdf.
\31\Sarah Alvarez, For-profit College Industry Slips Through Cracks
of Accountability, REVEAL, Jan. 10, 2017, available at https://
www.revealnews.org/article/for-profit-college-industry-slips-through-
cracks-of-accountability/.
---------------------------------------------------------------------------
News-making scandals aside, there is a more concerning and
foundational problem with the for-profit sector--the education
offered at these institutions is, in too many cases, not worth
the high cost to student borrowers. For example, average
tuition at for-profit two-year colleges is more than four times
higher than at public community colleges ($14,193 compared with
$3,370, respectively, in 2014). Students take out exorbitant
debt to pay for for-profit IHE credentials that fail to produce
corresponding personal value in the workforce. Research shows
that for-profit IHEs contribute an unreasonably high share of
student loan defaults.\32\ The same research finds that the
average student earning a two-year degree from a for-profit IHE
does not experience a large enough gain in earnings to offset
the costs of their education.\33\ In short, a student earning
an Associate's degree from a for-profit IHE would derive
greater economic benefit from directly entering the workforce,
without having earned the for-profit credential and the
exorbitant debt that comes with it.
---------------------------------------------------------------------------
\32\Stephanie Riegg Cellini and Lakita Chaudhary, The Labor Market
Returns to a For-Profit College Education, Nat'l Bur. of Econ. Res. 11
(2012) available at http://www.nber.org/papers/w18343.
\33\Id. at 27.
---------------------------------------------------------------------------
The negative long-term effects on the federal student loan
portfolio due to proliferation of for-profit IHEs are just
beginning to come into focus, and the initial data are
troubling. In a recent report looking at the long-term
characteristics of two cohorts of student borrowers, 52 percent
of borrowers at for-profit IHEs who entered school in 2003-04
have already defaulted on their loans.\34\ This is twice the
rate of borrowers at two-year public IHEs. When you compare all
students, not just borrowers, the rate of default among for-
profit IHE students is four times higher than those at
community colleges.\35\ The 2003-04 cohort in this study
predates the rapid expansion of enrollment at for-profit IHEs
that began in the late 2000s, which suggests that these trends
will get far worse before they get better. Research also shows
that, unlike non-profit institutions, for-profit institutions
actually increase tuition and fees to capture additional
federal financial aid dollars.\36\ Despite this overwhelming
evidence of the need for federal oversight of the sector to
protect students and taxpayers, H.R. 4508 rewrites and repeals
many of the provisions in current law that attempt to regulate
the for-profit sector's access to federal student aid,
beginning with how these schools are defined in the law.
---------------------------------------------------------------------------
\34\Judith Scott Clayton, The Looming Student Loan Default Crisis
Is Worse than We Thought'', 2 Brookings Evidence Speaks Rept. #34 at 1,
Jan. 10, 2018, available at https://www.brookings.edu/wp-content/
uploads/2018/01/scott-clayton-report.pdf.
\35\Id.
\36\Stephanie Riegg Cellini & Claudia Goldin, Does Federal Student
Aid Raise Tuition? New Evidence on For-Profit Colleges, Nat'l Bur. of
Econ. Res. Working Paper (2012, REV'D 2013) available at http://
www.nber.org/papers/w17827.pdf.
---------------------------------------------------------------------------
Redefinitions that more favorably position for-profit institutions in
federal statute
HEA currently contains multiple definitions of IHEs due, in
part, to the merging of definitions in HEA with those in the
National Vocational Loan Insurance Act of 1965. HEA originally
limited federal financial aid to students attending ``public or
other non-profit institutions of higher learning.'' Whereas,
the Vocational Act expanded eligibility for aid to students who
attended private for-profit schools but only for programs of
``postsecondary vocational or technical education designed to
fit individuals for useful employment in recognized
occupations.''\37\ When Congress combined these two laws in
1968, two classes of schools were created. The schools
previously covered by HEA became ``institutions of higher
education''; the Vocational Act schools and similar programs at
public and non-profit schools became ``vocational schools''',
still eligible for federal aid, but subject to the same useful
employment language from the Vocational Act.
---------------------------------------------------------------------------
\37\Ass'n of Proprietary Colls. v. Duncan, No. 1-14-cv-08838
(S.D.N.Y. May 27, 2015) at 7.
---------------------------------------------------------------------------
In 1992, Congress again revised the ``vocational schools'''
definition, distinguishing ``proprietary institutions of higher
education'' (private for-profit schools) from ``post-secondary
vocational institutions''' (non-degree training and vocational
programs at public and non-profit schools). Both proprietary
schools and the vocational programs at public and non-profit
schools were required by law to ``prepare students for gainful
employment in a recognized occupation.'' HEA currently
recognizes all of these schools as ``institutions of higher
education'' but still appropriately recognizes the distinction
between public and non-profit institutions (``101(a)
institutions''') and ``any school that provides not less than a
1-year program of training to prepare students for gainful
employment in a recognized occupation'' (``101(b)
institutions''').
H.R. 4508 merges two definitions in current law, allowing
for-profit IHEs to compete for already limited federal grant
dollars currently reserved for non-profit degree granting IHEs.
Committee Republicans did place some limitations on which
federal programs proprietary schools can receive funding from,
excluding Institutional Aid (Title III) and Developing
Institutions (Title V) programs. But under H.R. 4508,
proprietary schools would have access to more funds authorized
in HEA than they do currently.
Committee Democrats are also troubled by the implications
of this change outside the scope of HEA. There are other
provisions of law throughout the U.S. Code and State codes that
reference the 101(a) definition of IHEs, often with the direct
intent to exclude for-profit IHEs from access to federal
programs. This includes both laws directly related to education
and child development (K-12 education,\38\ Head Start,\39\
Education Sciences\40\) and laws that are beyond the scope of
education and child development (Immigration,\41\ the Federal
Aviation Administration,\42\ Patent Law,\43\ Institutional
Grant and Student Scholarship programs throughout the federal
government\44\). There are many other laws that use a broader
definition that includes both non-profit and for profit
IHEs\45\, which shows that statutory use of the 101(a)
definition in current law is evidence of lawmakers' deliberate
exclusion of for-profit institutions from certain sources of
federal funds or allowances under federal law. By removing this
distinction, Committee Republicans are attempting to alter
Congress' history of limiting the access of for-profit
institutions across the federal code.
---------------------------------------------------------------------------
\38\Elementary and Secondary Education Act of 1965, 20 U.S.C.
Sec. 7801.
\39\Omnibus Budget Reconciliation Act of 1981, 42 U.S.C. Sec. 9832.
\40\Education Sciences Reform Act of 2002, Pub. L. No. 107-279, 116
Stat. 1940.
\41\E.g., 8 U.S.C. Sec. 1184 (providing exclusion from limitations
on visas issued to nonimmigrant aliens who are employees of 101(a)
IHEs).
\42\FAA Modernization Act of 2012, Pub. L. No. 112-95, 126 Stat.
139 (regarding research on developing safer airport runways).
\43\35 U.S.C. Sec. 273 (defenses to copyright infringement afforded
101(a) IHEs).
\44\E.g., 42 U.S.C. Sec. 1862n (Math and Science Partnership Grants
from the National Science Foundation).
\45\E.g., Workforce Investment Act of 1998 20 U.S.C. 9202 (``The
term `institution of higher education' has the meaning given the term
in section 101 of the Higher Education Act of 1965.'').
---------------------------------------------------------------------------
H.R. 4508 also alters the definitions of IHE for the
purpose of Title IV programs in Sec. 102 of HEA. The changes
impact how IHEs outside the United States receive Title IV aid.
Under current law the Secretary is directed to establish the
criteria for determining which, if any, foreign IHEs can
receive Title IV aid. H.R. 4508 seems to incorporate those
underlying regulations, while at the same time creating its own
definition of foreign institution, different than the
regulatory definition incorporated. Finally, in recognition of
the conflict it has created, the bill suggests that the new
first definition is the actual definition of ``foreign
institution''. This overwrought complexity does nothing but
make it easier for for-profit foreign schools to find loopholes
through which they can receive Title IV aid.
Finally, the bill creates new definitions of competency,
competency-based education (CBE), and competency-based
education program. These terms replace the current law term
``distance education'' in key places throughout the HEA to
loosen federal oversight over disbursement of Title IV dollars.
Committee Democrats are highly concerned that this change of
definition (along with the watering down of the definition of
``correspondence education'') will have serious implications
for the provision of quality higher education programs. As
defined, CBE will give for-profit institutions the ability to
disproportionately access Title IV federal student aid without
providing enough of a legal and regulatory framework to ensure
the schools receiving federal dollars for delivery of CBE, as
defined in H.R. 4508, provide students with a meaningful
education or valuable credential. CBO estimates that removal of
the ``distance education'' definition and the creation of a
``competency-based education'' definition will together cost
the federal government $2.9 billion over the next ten years. A
disproportionate amount of these funds will likely flow to for-
profit schools. Additional concerns with CBE are discussed in-
depth later in these views.\46\
---------------------------------------------------------------------------
\46\See infra Part: ``H.R. 4508 Doubles Down on Unproven Programs
in Higher Education, at the Expense of Students''.
---------------------------------------------------------------------------
Legislative Repeals, Regulatory Rollbacks, and Bans on Departmental
Rulemaking
H.R. 4508 dismantles the regulatory framework designed to
prevent predatory for-profit IHEs from enriching themselves at
the expense of students and taxpayers. While the set of
statutory and regulatory oversight mechanisms repealed by the
bill has failed to prevent all for-profit sector abuse of
federal funds, it has been instrumental in preventing for-
profit schools from existing solely thanks to receipt of
federal student aid and ensuring that both for-profit and non-
profit career program credentials lead to a job commensurate
with their cost. H.R. 4508 will make it easier for schools to
alter program hours and lengths to receive more money for less
education. The bill weakens the role of States in the
regulatory triad of higher education, and will make it easier
for for-profit IHEs to avoid necessary oversight, accomplishing
the primary policy goal of the industry on the backs of
students and taxpayers.
H.R. 4508 eliminates the 90/10 requirement for for-profit
colleges. Current law requires that for-profit IHEs receive no
more than 90 percent (previously 85 percent) of their total
revenue from federal Title IV aid. This market-value provision
was created by Congress during the 1992 reauthorization to
ensure that for-profit entities were not deriving all of their
revenue from the federal government. The idea of monitoring an
institution's dependence on federal funds was already being
applied in veterans' assistance programs due to the abuse that
had taken place with veteran benefits decades earlier and
evaluations of these programs had found that the policy
hadhelped to curb abuse.\47\ Because many for-profit schools recruit
veteran students and only financial aid authorized through the HEA is
accounted for in the calculation, there is mounting evidence that the
90/10 requirement does not do enough to stop abuse in the for-profit
sector. While some leaders in the for-profit sector such as DeVry
University have decided to take all federal funds into account in their
90/10 calculations, this is self-imposed action. In the most recent
reporting period for which we have data, of the 1,872 for-profit IHEs,
only four reported failing the 90/10 rule.\48\ Committee Republicans
still claim the 90/10 rule is a burden on schools and repeal the
requirement. CBO estimates that repeal of the 90/10 rule will cost
taxpayers $3.3 billion over ten years.
---------------------------------------------------------------------------
\47\Congressional Research Service. Examination of the Current 90/
10 Rule and Its Legislative and Regulatory History. January 25, 2011.
\48\Letter from Kathleen Smith, Acting Assistant Secretary,
Department of Education, to Rep. Foxx (Oct. 20, 2017), available at
https://studentaid.ed.gov/sa/sites/default/files/fsawg/datacenter/
library/AY15-16-Transmittal-Letter.pdf.
---------------------------------------------------------------------------
H.R. 4508 eliminates the existing borrowers defense to
repayment rule. Issued in 2016, the ``borrowers defense'' rule
established a federal standard and process to determine whether
a student loan borrower has a defense to repayment of their
loan based on an act or omission of their school. Additionally,
it prohibited schools that participate in federal student aid
from forcing students into pre-dispute arbitration or class
action waivers. The rule also clarified policies around when
loans can be discharged collectively for groups of borrowers
(e.g., when a school closes). The Obama administration used the
combination of borrowers' defense and closed school discharges
to provide more than $558 million in loan relief to tens of
thousands of student borrowers.\49\ As of January 2017, there
were more than 60,000 claims pending at the Department of
Education.\50\ H.R. 4508 repeals the 2016 regulations, and
creates a statutory framework for borrowers defense. That
framework permits borrowers only three years to file a claim
and obtain relief, limits the Department's mandate to
automatically provide closed school discharges to affected
students, and sets an exceedingly high bar for borrowers to
prove their claims, to the benefit of IHEs.
---------------------------------------------------------------------------
\49\Press Release, U.S. Dep't of Educ., American Career Institute
Borrowers to Receive Automatic Group Relief for Federal Student Loans
(Jan. 13, 2017) available at https://www.ed.gov/news/press-releases/
american-career-institute-borrowers-receive-automatic-group-relief-
federal-student-loans.
\50\Id.
---------------------------------------------------------------------------
H.R. 4508 eliminates the statutory term ``Gainful
Employment'' (GE) and the corresponding Rule. Finalized in
October of 2014, the GE rule set a meaningful and necessary
standard for the Department of Education enforcement of
compliance with the statutory requirement that non-degree
training and vocational programs (career programs) at public
and non-profit schools prepare their students for gainful
employment in exchange for access to Title IV aid. The rule set
this standard by establishing ratios between income and student
loan debt to determine if career program graduates earn enough
money to pay back their loans. It required both programs that
failed outright and programs in the zone between passage and
failure to proactively disclose this status to prospective
students. Under the rule, a program ``in the zone'' or failing
for multiple years would lose access to federal student aid. In
the first round of GE data that was released January of 2017,
98 percent of the 800+ career programs that failed the rule
were offered by for-profit colleges.\51\ Along with repealing
the GE rule, H.R. 4508's re-definition of IHE strikes ``gainful
employment,'' eliminating the ability of the Department of
Education to regulate on the concept in the future. CBO
estimates removing the rule will cost taxpayers $940 million
over ten years.
---------------------------------------------------------------------------
\51\Id.
---------------------------------------------------------------------------
H.R. 4508 revokes the credit hour rule. HEA defines an
academic year for an undergraduate program as requiring a
minimum of 24 semester or trimester credit hours or 36 quarter
credit hours in a course of study. The amount of student
financial assistance that can be awarded is based on the number
of credit hours earned, but the term ``credit hour'' is not
defined in the HEA. Further, many institutions are moving to a
credit-hour fee structure, charging students per-credit, rather
than per-semester. In recognition of the importance of the
``credit hour'' unit as an accounting measure for student
financial assistance and in response to findings by the
Department of Education OIG that accreditors (as required by
HEA) did not have sufficient policies to ensure proper
assignment of credit hours to educational programs or to
justify program length, the Department defined a ``credit
hour'' in final regulations issued October 29, 2010. This
federal definition is consistent with commonly accepted
institutional and accrediting practices, and allows for a broad
application to a variety of course structures (such as
competency based coursework, laboratory work, and internships).
The definition applies to institutions for the purposes of
awarding federal financial aid; it does not preclude an
institution from creating a separate definition for
institutional purposes. The credit hour rule created a more
standardized, yet flexible, definition of the basis for
awarding all federal aid. In one of the few hearings the
Committee held on higher education this year, witness Ben
Miller from the Center for American Progress justified the need
for the rule as thus:
``I think one thing that is important to realize here
is part of the reason why we needed this rule was we
had colleges out there that were inflating credit hours
to get more financial aid, so we had schools claiming
they were offering courses worth nine credits that did
not have the amount of learning behind that. When you
do that, students pull down more financial aid than
they should, so they're going to exhaust their lifetime
eligibility sooner, and we're going to pay money out to
schools faster than we should. . . . we want to make
sure that schools aren't essentially taking in more
money than they should, making it harder for students
to get enough money to finish their whole
program.''\52\
\52\Testimony of Ben Miller, Center for American Progress, at
Hearing of the Committee on Education and the Workforce,
``Strengthening Accreditation to Better Protect Students and
Taxpayers'', Apr. 27, 2017.
---------------------------------------------------------------------------
In repealing the rule, H.R. 4508 would permit schools to
inflate their credit hours, siphoning more taxpayer dollars
through federal aid and forcing students to spend down their
aid eligibility more quickly without receiving commensurate
educational benefit. Not content to strike the existing rule,
the bill also prevents the Department of Education from
promulgating or enforcing a new credit hour rule in the future.
Committee Democrats recognize that there have been discrete
difficulties applying the current rule to all forms of higher
education, but maintain the firm belief that the rule should be
amended to ensure there is a meaningful compliance standard
that appropriately comports with innovative delivery methods
proven to benefit students. Committee Democrats believe that
H.R. 4508's limitation on the ability of the Secretary to bring
any rule to prevent waste, fraud, and abuse ignores evidence of
past behaviors by scrupulous actors and invites fraudulent
behavior.
H.R. 4508 repeals State authorization regulations. In order
for students at an institution to be eligible for Title IV
funds, an institution must be legally authorized by a State to
provide a program of postsecondary education. The Department of
Education's state authorization rules for brick-and-mortar and
distance education institutions establish baseline requirements
for the approvals that colleges receive from States to protect
students across the country. The bill repeals those baseline
protections, and like the credit hour rule, prohibits any
future regulation by the Department of Education on state
authorization.
H.R. 4508 shortens the program length requirement for Title
IV programs. Under current law, programs that receive Title IV
aid must have substantial timeframes to qualify for aid. The
rationale is that funds appropriated for higher education
should fund traditional programs that offer a complete
postsecondary education program. Shorter-length programs can
receive eligibility, provided they have strong completion and
job-placement numbers--indicators of a quality program. H.R.
4508 would shorten the minimum timeframe for a program of study
by a third, to just 10 weeks, and eliminate existing job
placement requirements and completion rate standards for short
term programs. This would permit students to access Pell Grants
and loans to attend short-term programs without any assurance
that the program's credential has meaningful value in the labor
market. CBO estimates this provision will cost taxpayers $305
million over 10 years.
H.R. 4508 opens the door to for-profit abusive recruitment
practices. While HEA bans certain forms of incentive
compensation, there are regulatory loopholes that allow for
limited use of incentive-based compensation, specifically the
use of third-party recruiters. It is likely that for-profit
schools used these loopholes to further abusive and fraudulent
recruiting tactics during the explosion of enrollment at low-
quality schools from 2009-2014. H.R. 4508 makes it harder to
protect students from aggressive marketing and recruiting by
codifying current regulatory loopholes used by the likes of ITT
Tech and Corinthian to entice large numbers of low-income and
low-information students to enroll in for-profit schools, often
without the support necessary to even complete their degree,
leading them down a path of debt and default.
H.R. 4508 allows unaccountable (and currently ineligible)
education program providers to access taxpayer dollars. The
bill would create an unaccountable, highly risky field of
educational providers with full access to federal financial
aid, in the name of innovation. The bill permits non-
institutional education providers--those that haven't met even
the basic requirements colleges must meet in terms of
accreditor, State, and Department of Education approval--to
offer entire programs of study at an IHE, granting them access
to federal aid with no checks and balances. An ineligible
program could provide up to 25 percent of an educational
program with no oversight whatsoever, and anywhere from 26-100
percent of a program with the approval of the eligible
program's accreditor. While Committee Democrats recognize that
there are certain cases where a partnership between an
ineligible program and an eligible program makes sense and can
be a good deal for students (e.g., fine arts students splitting
program time between a classroom and a working theater), this
provision in H.R. 4508 is overly broad and would invite bad
actors, especially those with a strong profit motive.
Weakening accreditation to benefit for-profit institutions
For-profit IHEs have been adept at creating an alternative
narrative, mainly through billions spent on advertising and
aggressive recruitment techniques. Although comprehensive
numbers are not widely available, it is estimated that the for-
profit IHE sector routinely spent at least 20 perecent of its
annual revenue on marketing and advertising over the last
decade.\53\ Coupled with the advertising were recruitment
practices targeting low-information and low-income consumers.
Targeting such consumers enabled the sector to dramatically
increase student enrollment while maximizing access to billions
of dollars in federal student aid.\54\
---------------------------------------------------------------------------
\53\See Senate HELP Report, supra note 30, at Part II, page 382
(``On average, among the 15 publicly traded education companies, 86
percent of revenue came from Federal taxpayers in fiscal year 2009.1535
During the same period those companies spent 23 percent of revenue on
marketing and recruiting ($3.7 billion) and dedicated 19.7 percent to
profit ($3.2 billion)'').
\54\Annie Waldman, How a For-Profit College Targeted the Homeless
and Kids With Low Self-Esteem, ProPublica, March 18, 2016, available at
https://www.propublica.org/article/how-a-for-profit-college-targeted-
homeless-and-kids-with-low-self-esteem.
---------------------------------------------------------------------------
Ignoring these facts, H.R. 4508 specifically eliminates the
provision requiring an accreditor to assess recruiting and
admission practices, record of student complaints, and record
of compliance. Removing this requirement weakens yet another
check on the for-profit sector. The bill also eliminates the
need for accreditors to assess curricula, faculty, facilities,
fiscal capacity, and measure of program length. Under H.R.
4508, accreditors are only required to evaluate success with
respect to student learning and educational outcomes. The
legislative language is clear that accreditors can include
different standards for different institutions and programs.
Further, these standards may be established by the accreditor
or by the institution/program if the institution/program
defines and measures the expected goals and outcomes. Allowing
institutions to self-regulate, combined with the other
provisions in H.R. 4508 leaves the door open for further abuse
of students.
Under H.R. 4508, for-profit colleges and corporate
interests are the clear winners. The bill gives for-profit
colleges unfettered access to Title IV funds without remotely
adequate safeguards to protect students and taxpayers. Rather
than work to increase access and affordability to quality
degrees and credentials for all students, the bill opens the
door to more waste, fraud, and abuse in higher education, with
students and taxpayers left holding the bag.
In response to the flawed proposals that preference for-
profit institutions in H.R. 4508, Rep. Takano introduced an
amendment to restore the separate definition of for-profit
institution, retain the Department of Education's ability to
regulate on student protections from abuse by for-profit
institutions, and reinstate the 90/10 rule. Further, to stop
the aggressive recruitment of veterans, the amendment included
a provision to count veteran benefits as federal dollars, an
attempt to close the ``90/10 loophole''. The amendment restored
State authorization requirements for distance education and
current-law prohibitions on incentive payments for recruiters.
Further, it specified strict conditions under which a non-
eligible institution or organization in partnership with an
eligible institution of higher education can access Title IV
funds. The amendment failed on a party-line vote.
H.R. 4508 ABANDONS TEACHERS WHILE DISGUISING LOW-QUALITY JOB TRAINING
PROGRAMS AS APPRENTICESHIPS
Since its inception, HEA has included supports for the
training and recruitment of teachers. H.R. 4508 eliminates all
federal funding for teacher preparation programs. In its place,
CommitteeRepublicans offer a misnamed grant program that
purports to provide ``apprenticeships.'' Committee Democrats strongly
dispute the claim that ``apprenticeships'' are offered under this new
Title II. Instead, this re-write provides federal grants for a low-
quality `earn and learn' experience that has little relation to the
registered apprenticeship program proven to result in quality
credentials that have value in the workforce.
Although public education is experiencing a national
teacher shortage,\55\ H.R. 4508 eliminates all federal funding
for teacher preparation programs. By eliminating Teacher
Quality Partnership Grants and all other HEA authorized grant
programs to enhance teacher education, H.R. 4508 would shrink
the pipeline of effective teachers and school leaders, hurting
students across the country. Committee Democrats strongly
believe HEA programs that improve pre-service teacher
preparation and support new teachers should be strengthened not
eliminated.
---------------------------------------------------------------------------
\55\Sophie Quinton, Teacher Shortages Linger in Many States, Pew
Charitable Trusts Stateline, Dec. 28, 2017, available at http://
www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2017/12/28/
teacher-shortages-linger-in-many-states?utm_campaign=2018-01-
02+SW&utm_medium=email&utm_source=Pew.
---------------------------------------------------------------------------
Instead of strengthening the teacher pipeline, H.R. 4508
creates a new grant program in which corporations,
collaborating with institutions of higher education (including
for-profit institutions), are eligible to receive federal funds
for programs branded as ``apprenticeships.'' These programs
have few if any of the quality controls generally associated
with high quality apprenticeship programs. Although the bill
labels this program as an ``apprenticeship'' program, in
reality this is an earn-and-learn grant program that fails to
meet widely accepted minimum standards for apprenticeship
programs. Grants awarded to providers under H.R. 4508 could be
used to fund something more akin to a subsidized internship,
than an actual apprenticeship.
Although there is broad bipartisan support for expanding
access to quality apprenticeship programs, Committee Democrats
believe the registration process provides necessary quality
control and program accountability that has been key to the
programs' success. Registered Apprenticeship (RA) is a proven
model of job preparation that combines paid on-the-job training
with related classroom instruction to progressively increase
workers' skill levels and wages. For workers, RA means a real
job that leads to a credential that is valued in the labor
market. Apprentices are paid for their time spent on the job,
accumulate little to no student debt, and are generally
retained once they have successfully completed their programs.
Many RA programs also have the added benefit of eligibility for
certain federal financial aid programs.\56\
---------------------------------------------------------------------------
\56\Employment and Training Administration, U.S. Dept. of Labor,
The Federal Resources Playbook for Registered Apprenticeship, 2,
available at https://www.doleta.gov/oa/federalresources/playbook.pdf
(outlining how Pell and Work-Study funds are available to support
students in registered apprenticeships).
---------------------------------------------------------------------------
Graduates of RA programs receive nationally-recognized,
portable credentials, and their training may be applied toward
further post-secondary education. RA programs require the
submission of detailed standards documentation on the
apprenticeship for a specific occupation to the U.S. Department
of Labor's (DOL) Office of Apprenticeship or the State
apprenticeship agency for review and approval. These standards
demonstrate that an apprenticeship meets the five core
components required for a registered apprenticeship: direct
business involvement, on-the-job training, related (classroom)
instruction, rewards for skill gains (wage scale), and a
national occupational credential. These standards requirements
allow every graduate of an RA program to receive a nationally-
recognized portable credential, the Certificate of Completion,
which signifies that the apprentice is fully qualified to
successfully perform an occupation.\57\ None of this is
required for H.R. 4508's ``apprenticeship'' program.
Additionally, the new program authorized by H.R. 4508 would be
administered by ED, not DOL, and wholly duplicative of the $1.3
billion program authorized by the Carl D. Perkins Career and
Technical Education Act (Perkins CTE) already administered by
ED. The Perkins CTE program sends federal funds to support
quality CTE developed by community colleges in partnership with
industry.
---------------------------------------------------------------------------
\57\Employment and Training Administration, U.S. Dept. of Labor,
Training and Employment Guidance Letter WIOA NO. 13-16, Operating
Guidance for the Workforce Innovation and Opportunity Act, Jan. 12,
2017, available at https://wdr.doleta.gov/directives/attach/TEGL/
TEGL_13-16_acc.pdf.
---------------------------------------------------------------------------
According to the Center for American Progress, 87.4 percent
of apprentices who finished high-quality training were employed
shortly after completion of the apprenticeship.\58\
Apprenticeship completers also make middle-class wages. The
Department of Labor estimates that the average wage for an
individual who has completed an apprenticeship is $50,000. Over
a lifetime, this can add up to approximately $300,000 more in
wages and benefits.\59\ The RA program has an established track
record of providing high-quality job training. By creating a
lesser ``apprentice'' model, H.R. 4508 uses the buzzword of
``apprenticeship'' to provide direct aid to industry while
offering an inferior education and training program for
students.
---------------------------------------------------------------------------
\58\Ben Olinsky and Sarah Ayres, Training for Success, A Policy to
Expand Apprenticeships in the United States 10, Ctr. for Am. Prog. Nov.
2013, available at https://www.americanprogress.org/wp-content/uploads/
2013/11/apprenticeship_report2.pdf
\59\Angela Hanks. Now is the Time to Invest in Apprenticeships.
Center for American Progress. November 18, 2016. https://
www.americanprogress.org/issues/economy/reports/2016/11/18/292558/now-
is-the-time-to-invest-in-apprenticeships/
---------------------------------------------------------------------------
Rep. Wilson introduced an amendment to strike the repeal of
the Teacher Quality Partnership Grant program, TEACH Grant
program, and other supports for college students wanting to
pursue the teaching profession. Rep. Davis introduced an
amendment that would require the Department of Education to
consult with the Department of Labor in creating and
administering the grant program established by H.R. 4508 to
ensure program quality. The amendment also sought to change the
name of the new grant program to clarify that the program
authorized is an ``earn and learn'' program, not an
apprenticeship program. Both amendments failed on a party line
vote.
H.R. 4508 DISINVESTS IN INSTITUTIONS THAT SERVE LOW-INCOME, MINORITY,
AND RURAL STUDENTS
While H.R. 4508 includes multiple provisions that will
benefit for-profit schools to the detriment of students, there
are two other under-resourced institutional sectors that serve
as engines of economic mobility but do not receive such
favorable treatment: community colleges and Minority Serving
Institutions (MSIs). This is disappointing because not only do
such schools disproportionately enroll low-income, minority,
and first-generations students, but they also produce better
student outcomes than for-profit schools. Community colleges
and MSIs provide a better education for many students at a
cheaper price than for-profit schools, and there are several
policies in H.R. 4508 that will negatively impact their
capacity to serve students. Committee Democrats believe a
reauthorized HEA must build the capacity for community colleges
and MSIs to deliver quality programming not hinder the work of
these schools. To that end, Committee Democrats offered a
number of amendments to ensure adequate federal resources for
community colleges and MSIs.
``Risk-sharing'' proposal poses significant risk to institutions that
serve vulnerable students
H.R. 4508 restructures the existing Return to Title IV
(R2T4) process that requires institutions to return funds to
the federal government when a student withdraws before the end
of a semester. The bill increases the proportion that
institutions must return, disproportionately impacting
institutions that enroll higher proportions of students who are
at-risk of withdrawing prior to completion. This provides
institutions perverse incentive to enroll higher-income
students who are already more likely to repay. Democrats
support ``risk-sharing'' that will incentivize institutions to
effectively serve and ensure degree completion of high-need
students, not deny such students access.
Minority serving institution funding and requirements attached to such
funding
To correct for historical inequities in funding and to
improve the quality of higher education for minority-students,
Congress established minority-serving institution (MSI)
designations for public and private non-profit institutions.
Starting with Historically Black Colleges and Universities
(HBCUs) in 1986, Congress eventually recognized seven different
undergraduate designations of MSI, all with their own
requirements for recognition, institutional characteristics,
and challenges. Collectively, in the 2013-14 academic year,
MSIs served 40 percent of underrepresented students, totaling
approximately 3.8 million students or 26 percent of all college
students.\60\ MSIs do this work despite being under-resourced
compared to Predominantly White Institutions.\61\
---------------------------------------------------------------------------
\60\2016-17 National Campaign on the Return on Investment of
Minority Serving Institutions, Univ. of Penn. Center for MSIs,
available at https://cmsi.gse.upenn.edu/sites/default/files/
ROI_Report.pdf.
\61\Id. at 5 (``Total revenue per full-time equivalent student is
roughly $16,648 at four-year Minority Serving Institutions (MSIs)
compared to $29,833 at non-MSIs.'').
---------------------------------------------------------------------------
In an effort to address this resource gap, Congress
provides institutional aid to MSIs via formula funding and
competitive grants in Titles III and V of HEA. These programs
are funded by both discretionary spending and direct spending
(first secured in FY 2011 as part of the Student Aid and Fiscal
Responsibility Act (SAFRA)). These institutional aid funds can
be used by institutions in a variety of ways including
supporting the academic mission of the institution, making
capital improvements, and building endowment funds. The
mandatory portion of these funds expires in FY 2019, and MSIs
and their member organizations have prioritized securing this
mandatory funding in any HEA reauthorization.
H.R. 4508 does not extend this mandatory funding, leaving
the fate of these institutional aid programs in the hands of
appropriators and threatening long-term funding stability.
Additionally H.R. 4508 places a 25 percent graduation/transfer
requirement on certain MSI grants. Instead of penalizing
already underserved institutions, Committee Democrats believe
that the federal government should help these institutions
build capacity to improve student outcomes.
Rep. Adams introduced an amendment to repeal the 25 percent
graduation and/or transfer rate requirement created for some
but not all MSI programs in H.R. 4508. The amendment also
extended mandatory funding for MSI programs and revised
allowable uses of funds, in response to the needs of each
specific MSI sector. The Adams amendment established new grant
programs to further support MSIs and the students they serve,
including an $850 million MSI Innovation Fund to provide
sustained funding on MSI campuses to drive innovative
approaches to improving college completion for minority
students, bolster STEM degree attainment, and improve the
connection between MSIs and the private sector. The spending on
this amendment would amount to a fraction of the cost of the
proposed changes contained in H.R. 4508 intended to
disproportionately benefit the for-profit IHE sector. The
amendment failed on a party line vote.
Community college institutional funding
In recognition of the fact that open-access Community
colleges enroll a diverse student body and more than 40 percent
of all undergraduates, Committee Democrats offered amendments
to improve community college capacity. Community colleges
enroll the majority of all Native American and Latino
undergraduate students (56 and 52 percent, respectively), and
enroll two in five Black and Asian/Pacific Islander
undergraduate students (43 percent and 40 percent,
respectively).\62\ These institutions provide an affordable
education and training close to home for students who attend
part-time, work full-time, are from low-income families, or may
be responsible for families of their own. Additionally,
community colleges are often positioned as the only non-profit
IHE in many rural communities throughout the country.
---------------------------------------------------------------------------
\62\Fast Facts 2017, American Association of Community Colleges,
available at https://www.aacc.nche.edu/wp-content/uploads/2017/09/
AACCFactSheet2017.pdf
---------------------------------------------------------------------------
Despite the pivotal role of community colleges in our
country, these institutions are often underfunded and
underappreciated. Students at community colleges receive less
public support than students at four-year research
institutions. In 2011, per-pupil public funding at community
colleges was $7,420, while students attending four-year
institutions received amounts more than twice as high.\63\ HEA
currently provides institutional aid to community colleges
through the Strengthening Institutions Program (SIP) authorized
in Title III, Part A. This program provides competitive grants
to campuses that often use the funds to provide the wraparound
services that community college students often need to persist
through to graduation or transfer to a four-year school. SIP
grants are highly competitive with need outpacing the available
grants considerably. Shockingly, H.R 4508's response to the
documented need of the community college sector was to
eliminate the SIP program.
---------------------------------------------------------------------------
\63\Richard D. Kahlenberg, How Higher Education Funding
Shortchanges Community Colleges, 4, The Century Foundation, May 28,
2015, available at https://tcf.org/assets/downloads/
Kahlenberg_FundingShortchanges.pdf
---------------------------------------------------------------------------
To ensure that community colleges have sufficient resources
to serve their students, Rep. Norcross introduced an amendment
to provide funding to support the expansion of effective
community college completion programs through the delivery of
comprehensive student support services, including academic
advising, academic and career support, and financial support.
The core components of the services are modeled after
rigorously evaluated programs that have, through these
services, removed barriers to full-time study and increased
three-year associate's degree completion and transfer
rates.\64\ In addition to these core supports, institutions
receiving grants would have the flexibility to tailor their
program to their unique needs. To ensure accountability to
taxpayers and policy makers, the amendment requires all
grantees to monitor and track student participation and measure
academic progress toward clearly articulated program goals.
Committee Republicans voted to reject the Norcross amendment.
---------------------------------------------------------------------------
\64\Strumbos, D., Kolenovic, & Z., Tavares, A. (2016). CUNY
Accelerated Study in Associate Programs (ASAP): Evidence from Six
Cohorts and Lessons for Expansion. In S. Whalen (Ed.), Proceedings of
the 12th National Symposium on Student Retention, Norfolk, Virginia.
(pp. 130-142). Norman, OK: The University of Oklahoma. Retrieved http:/
/www1.cuny.edu/sites/asap/wp-content/uploads/sites/8/2016/11/CUNY-ASAP-
NSSR-Proceedings_web_20161109.pdf
---------------------------------------------------------------------------
H.R. 4508 REPEALS VALUABLE REGULATIONS WHILE INTRODUCING NEW REGULATION
TO PROMOTE IDEOLOGICAL VIEWS
Throughout the markup, Committee Republicans characterized
oversight and accountability over IHEs as ``burdensome
overregulation.'' In contrast, Committee Democrats offered
amendments and discussed the need to adhere to the original
intent of the HEA--to improve access to higher education for
capable students, regardless of income level.
Relaxing institutional drug prevention requirements during a national
opioid crisis
H.R. 4508 sought to remove the current-law Program
Participation Agreement (PPA) provision that requires IHEs
receiving federal funds to implement drug and alcohol abuse
prevention programming found in Title IV, while maintaining a
corresponding requirement in Title I that carries no federal
enforcement. The bill also repeals current-law authorization of
grant funds to assist IHEs in developing and implementing
effective prevention programs. This action ignores the data:
approximately 64,000 Americans died from drug overdose last
year, and the non-medical use of prescription drugs was highest
among college-aged individuals.\65\
---------------------------------------------------------------------------
\65\Catherine Morris, Experts: Colleges Have Role in Battling
Opioid Epidemic, Diverse! (Oct. 24, 2017) available at http://
diverseeducation.com/article/103785/.
---------------------------------------------------------------------------
Approximately 150 institutions are already responding by
offering collegiate recovery programs and a growing number are
offering substance-free or recovery-centered housing and other
health interventions and support services to students
struggling with or affected by addiction.\66\ Rep. Shea-Porter
offered an amendment to keep the PPA requirement for drug and
alcohol abuse prevention programming as a condition of federal
funding--a provision that has been in the HEA for the last 30
years--and strengthened the requirement to ensure that programs
offered by the IHE are evidence-based and have a focus on
opioid misuse to help combat the opioid epidemic. After some
debate, this amendment was adopted by voice vote.
---------------------------------------------------------------------------
\66\Mariah, Bohannon, The Opioid Crisis Comes to College, Insight
into Diversity (Oct. 17, 2017) available at http://
www.insightintodiversity.com/the-opioid-crisis-comes-to-college/.
---------------------------------------------------------------------------
Removing campus voter registration requirements while Republicans work
to limit ballot access
H.R. 4508 weakens a current-law provision that requires
colleges receiving Title IV funds to distribute voter
registration information to students by moving the provision
out of the PPA section and into a different title; thus,
removing institutional accountability for failure to distribute
voter registration information to students. Committee Democrats
recognize that institutions of higher education, having long-
served as places of civic engagement, play an integral role in
supporting students to pursue civic engagement and participate
in the democratic process. Rep. Krishnamoorthi introduced an
amendment to strike H.R. 4508's harmful changes that dilute the
current-law requirement that institutions distribute voter
registration information. Unfortunately, the amendment was not
adopted as it was opposed by Committee Republicans.
Regulations limiting the use of postsecondary data pass Committee
Republican muster
The federal post-secondary data infrastructure is a
complex, duplicative maze of federal reporting requirements
that often leaves students and families without access to
complete information. H.R. 4508 increases institutional burden
by requiring institutions to report new program-level debt and
earnings metrics. Although this is a step toward better data,
H.R. 4508 does not overturn the outdated ban on a federal
student-level data network, which would reduce institutional
burden by eliminating the duplicative, inefficient, and
incomplete data infrastructure currently in place.
Additionally, H.R. 4508's new reporting requirement fails to
address a current-law impediment to data quality by maintaining
the limitation that data only be collected and reported for
students receiving federal financial aid, omitting 30 percent
of all students, and painting an incomplete picture of the
nation's higher education system.
Committee Democrats believe that too many students remain
missing from key college outcome metrics today. For example,
even with recent updates to data on college completion, the
updated measure does not disaggregate by race/ethnicity, nor
does it measure completion after transfer.
Because Committee Democrats support a student-level data
network that would allow for more complete reporting while
reducing institutional burden, Rep. Polis introduced an
amendment to strike the student unit record ban from HEA.
Despite the cosponsorship of six Committee Republicans on
stand-alone legislation to strike the student unit record ban,
Committee Republicans collectively rejected the Polis
amendment.
Unnecessary Speech Code Provisions
H.R. 4508 requires the disclosure of any policy related to
protected speech on campus, including policies limiting where
speech can occur for IHEs in receipt of Title IV funds. During
markup, Committee Republicans passed, on a party line vote, an
amendment expanding this provision, creating an office at the
Department of Education tasked with responding to student
complaints regarding IHE compliance with free speech policies.
Committee Democrats objected to this amendment as we believe
the purported ``free speech crisis'' underway on college
campuses is more political rhetoric driven by conservative
ideologues rather than reality.\67\ The amendment passed on a
party-line vote.
---------------------------------------------------------------------------
\67\See e.g., Chris Ladd, There is No Free speech Crisis on Campus,
Forbes, Sept. 23, 2017, available at https://www.forbes.com/sites/
chrisladd/2017/09/23/there-is-no-free-speech-crisis-on-campus.
---------------------------------------------------------------------------
H.R. 4508 CREATES TROUBLING EXEMPTIONS TO FEDERAL LAW FOR RELIGIOUS
INSTITUTIONS
H.R. 4508 prohibits any Federal, State, or Local government
entity from taking any adverse action (including withholding of
funds) against an IHE in receipt of Title IV funds for failure
to comply with HEA requirements, so long as the IHE's
justification for noncompliance rests with the institution's
religious mission or affiliation. This overly broad provision
effectively exempts institutions, including for-profit
institutions, from federal oversight in the name of religion.
Committee Democrats believe that religious institutions
play a vital role in the U.S. system of higher education. Data
from the ED Integrated Postsecondary Education Data System
(IPEDS) show that during the 2015-2016 Academic Year, there
were 7,180 main campuses of Institutions of Higher Education
that participated in HEA, Title IV. Of those, 901 main
campuses, or 12.5 percent, were religiously affiliated. These
institutions are able to execute the responsibilities and
requirements of the law while successfully maintaining their
religious identities and missions, suggesting that the
religious provisions of H.R. 4508 are a solution in search of a
problem. H.R. 4508 creates an unnecessary carve out for
religious institutions that want access to federal funding
without abiding by federal civil rights laws or the federal
oversight and accountability that accompanies acceptance of
taxpayer funds.
This exemption is just one of many provisions addressing
religion in H.R. 4508. The bill also exempts religious student
organizations at public institutions from adhering to
nondiscrimination protections for all students. It codifies a
loophole in current regulations that exempts religious
institutions from State licensing and authorization procedures
and fraud oversight if State law allows the exemption, thereby
encouraging additional States to adopt such an exemption. The
bill expands the deference that must be given to religious
institutions by accreditors by broadly defining what is
included under the pretext of religious mission and expressly
permitting institutions to self-define their missions. It
establishes a complaint procedure for religious institutions
against accreditors that is heavily and unfairly weighted to
the benefit of such institutions. And although it does not
carry the weight of law, H.R. 4508 expresses the sense of
Congress that individuals should be free to profess and
maintain their own opinions in matters of religion without
curtailing their civil liberties or rights on IHE campuses.
Additionally it expresses the sense of Congress that no public
IHE receiving federal funds under HEA should limit religious
expression, free expression, or any other First Amendment
rights, without noting a Title IV-receiving institution's
obligations to comply with federal civil rights laws.
Taken in total, the religious provisions in H.R. 4508 go
far beyond the jurisdictional scope of HEA. As written, the
bill permits an institution's religious mission to supersede
several federal civil rights statutes, such as: Title VI of the
Civil Rights Act of 1965; Title VII laws against discrimination
in employment based on sex, race, color, national origin, or
religion; ADA employment laws to protect the disabled; Title IX
laws against gender discrimination in a program or activity
receiving federal financial aid; and the Fair Housing Act of
1968. Section 117 of H.R. 4508 essentially creates a limitless
exemption for religious institutions to act in any way
affecting any issue under the pretext of religion. In this
sense, the provision has more in common with the First
Amendment Defense Act (FADA)\68\ or Religious Freedom
Restoration Act (RFRA)\69\ than higher education policy, as
this broad exemption attempts to position freedom of religion
as the pre-eminent first amendment right.
---------------------------------------------------------------------------
\68\https://www.congress.gov/114/bills/hr2802/BILLS-
114hr2802ih.pdf.
\69\Pub. L. No. 103-141
---------------------------------------------------------------------------
Aside from being broad in scope, the language of the
religious provisions in H.R. 4508 is overly vague, and, as
such, is open to dangerous interpretation. The bill broadly
defines ``religious mission'' to include ``religious tenets,
beliefs, or teachings, and any policies or decisions related to
such tenets, beliefs, or teachings (including any policies or
decisions concerning housing, employment, curriculum, self-
governance, or student admission, continuing enrollment, or
graduation).'' This broad language ensures that any action or
failure to act on the part of an institution fits under the
umbrella of ``religious mission''. It similarly defines
``adverse action'' equally broadly. In a final confounding
turn, it appears that any attempt to enforce this provision
would violate the provision on its face, by requiring the
Department of Education to become involved in assessing a
school's religious mission.
Almost 1,000 religious institutions currently receive
funding under HEA while successfully complying with the law's
present requirements. Moreover, several of the civil rights
laws mentioned already contain their own limited religious
exemptions. Title VII of the Civil Rights Act of 1965 permits
religious employers to consider religion in employment
decisions although they may not consider other protected
classes. Title IX of the Education Amendments of 1972 allows
religious institutions to request an exemption to consider
religion in admission and certain other contexts within
education, but it requires a determination that the institution
is in fact controlled by a religious organization. The
Americans with Disabilities Act includes an exemption for
religious organizations.
Religious institutions can either follow federal education
and civil rights laws and access federal funds, or they can
choose not to follow such laws and forego access to federal
funding. That is the prerogative of each institution. HEA as it
currently stands is not an impediment to religious institutions
receiving federal funds, nor does it require them to abandon or
disregard their religious missions. Committee Democrats believe
religious IHEs must continue to follow the same civil rights
laws and be subject to the same oversight provisions as other
institutions, which they successfully do now.\70\
---------------------------------------------------------------------------
\70\Standing with Committee Democrats are 50 civil rights, faith,
religious freedom, LGBTQ, and reproductive rights organizations
strongly opposed to provisions of H.R. 4508 that permit discrimination
based on religion.
---------------------------------------------------------------------------
Ranking Member Scott offered an amendment repealing H.R.
4508's provisions that exempt religious institutions from civil
rights laws and appropriate federal oversight. The amendment
also repealed the other provisions of H.R. 4508 that attempt to
place the religious rights of institutions or individuals on
campus above other civil rights and legal requirements. This
amendment failed due to a party line vote.
H.R. 4508 FAILS TO ADDRESS SERIOUS CONCERNS OVER CAMPUS SAFETY
College campuses should be havens for students to focus on
education free from concerns for their safety. We know this is
not the case, as incidents of campus sexual assault, racial
violence, and hazing have all garnered national attention
recently. The recent investigation into Title IX violations in
the wake of the Larry Nassar scandal at Michigan State
University are an example of what can happen when schools put
their image above their student's safety and well-being.
Similarly, the nation watched in horror when a mob of torch-
wielding white nationalists descended on the University of
Virginia (UVA) and marched through university grounds chanting
racial epithets and intimidating students and faculty, in
complete disregard of the Title VI and Equal Protection right
to a safe learning environment.\71\ On each of these issues,
H.R. 4508 offers policies that fail to adequately address, and
in some cases would exacerbate the underlying problems. H.R.
4508 undermines protections for survivors of campus sexual
assault, which could undermine the ability of IHEs to combat
this pervasive issue. At markup, in an attempt to preempt a
vote to express a sense of Congress condemning racial violence
on campus, Committee Republicans adopted a hollow amendment
offered by Rep. Garrett to support `diversity and inclusion'
that fails to speak to the growth of incidents of racial
violence. And, despite adoption of the Thompson Amendment, the
reported bill fails to treat the issue of campus hazing as a
true threat to public safety.
---------------------------------------------------------------------------
\71\``White Nationalists March on the University of Virginia.'' The
New York Times, August 11, 2017. Available at: https://www.nytimes.com/
2017/08/11/us/white-nationalists-rally-charlottesville-
virginia.html?mcubz=0.
---------------------------------------------------------------------------
H.R. 4508's inadequate approach to campus sexual assault
H.R. 4508 contradicts the intent of the Clery Act. The
Clery Act is designed to ensure IHEs report crimes on campus to
give policymakers and the public a complete picture of student
safety and security. As part of guidance to schools on campus
sexual assault issued to IHEs in 2014, the Department of
Education clarified which individuals on a campus had a duty to
report an allegation of sexual violence for purposes of Clery
reporting. This would not trigger an investigation
automatically, but would require the IHE to report the
incident. The definition of responsible employee included, any
employee who ``has been given the duty of reporting incidents
of sexual violence or any other misconduct by students to the
Title IX coordinator or other appropriate school designee, or
whom a student could reasonably believe has this authority or
duty.''\72\
---------------------------------------------------------------------------
\72\Catherine E. Lhamon, Questions and Answers on Title IX and
Sexual Violence, U.S. Department of Education, April 29, 2014,
available at http://www2.ed.gov/about/offices/list/ocr/docs/qa-201404-
title-ix.pdf. (Emphasis added).
---------------------------------------------------------------------------
Under H.R. 4508, IHEs must hire at least one sexual assault
survivors' counselor for victims of sexual assault. Counselors
must be trained specifically in sexual assault, and each IHE
must make a good faith effort to advertise the availability of
sexual assault counselors. Most students would reasonably
believe that a counselor mandated by their school to help them
deal with the aftermath of a sexual assault would have the
authority or duty to report the assault. Instead, H.R. 4508
prohibits counselors who provide services to victims of sexual
assault from reporting the incident(s) and bars the
consideration of such information as part of the Clery Act.
This frustrates the Clery Act's purpose, which requires the
collection and reporting of such incidents. Mandating
counselors but not requiring them to report incidents of sexual
assault for inclusion in campus crime statistics, will compound
the problem of underreporting of sexual assault, allowing
schools to misrepresent the nature of sexual violence on
campus. With regard to provisions contained in H.R. 4508 that
could amend or change the intent of Clery, at markup Chairwoman
Foxx made a commitment to Rep. Davis to ``before the bill is
brought to the floor make absolutely certain, there is no
misunderstanding of what we are trying to accomplish here.''
H.R. 4508 would allow schools to assess sexual assault
claims using varying standards of evidence. Prior to 2014, IHEs
used varying standards of evidence in sexual assault
proceedings. While some schools used the preponderance of the
evidence standard (the standard used in most civil cases), some
schools used the more stringent clear and convincing evidence
standard. As part of the Department of Education guidance in
2014 to standardize compliance expectations, schools are to use
the preponderance of the evidence standard in resolving Title
IX complaints.\73\ Under H.R. 4508, each IHE would be allowed
to set its own standard of review, so long as it is
consistently applied throughout the institution. The result
will be that the same actions on different campuses, possibly
even between campuses in the same city, could be judged
differently. Committee Democrats are concerned that allowing
for varying standards will result in inequitable results on
many campuses and note that enactment of this provision would
result in Title IX violations held to a different standard than
other violations on campus.
---------------------------------------------------------------------------
\73\Id. at 13.
---------------------------------------------------------------------------
H.R. 4508 encourages IHEs to delay sexual assault
investigations. Section 488 (f)(18) of H.R. 4508 allows IHEs to
delay their own investigation into an allegation of campus
sexual assault if the matter is also being investigated by law
enforcement. This contradicts Title IX and related guidance,
which finds that once a school ``knows or reasonably should
know of possible sexual violence, it must take immediate and
appropriate action to investigate or otherwise determine what
occurred.''\74\ Schools are obligated to promptly address the
alleged incidents, regardless of the whether the allegation is
addressed through the criminal justice system. In the words of
the American Association of University Women,
---------------------------------------------------------------------------
\74\Id. at 2.
``Under the provisions of H.R. 4508, schools would
have an excuse not to investigate sexual assaults on
campus at the request of law enforcement, possibly
undermining students'' ability to seek justice and
accommodation at their schools. In addition, this bill
would give schools a pass on accurately disclosing
annual crime data. The last thing students need is for
schools to return to the days of sweeping sexual
---------------------------------------------------------------------------
violence under the rug.''
Committee Democrats believe this provision will frustrate
survivors' attempts at resolution and could result in fewer
victims coming forward to report to the institution due to
inaction by the school to adequately address instances of
campus sexual assault and impose institutional penalties to
ensure student safety.
H.R. 4508 requires confusing campus climate surveys and
prohibits data from being used to address Campus Sexual
Assault. Section 162 of H.R. 4508 would require IHEs to conduct
climate surveys and to use such surveys to improve the school's
response to sexual harassment and assault. However, the bill
fails to require institutions to share survey findings with the
students. Further, H.R. 4508 prohibits the Secretary of
Education from creating uniform survey standards, using survey
findings as a tool for comparisons among IHEs, and issuing
regulations or technical assistance as a means to address the
problem of campus sexual assault. According to a leading
advocacy group for survivors of campus sexual assault, ``The
data [from proposed climate surveys], therefore, does not
educate the public regarding the climate at any particular
school, nor does it incentivize accountability.''\75\
---------------------------------------------------------------------------
\75\Letter to Reps. Foxx & Scott from Gaylynn Burroughs, Director
of Policy and Research, Feminist Majority Foundation, Dec. 11, 2017.
---------------------------------------------------------------------------
To address the regression made by H.R. 4508 on campus
sexual assault, Reps. Davis and Bonamici offered an amendment
to strike this language in the underlying bill. This amendment
was defeated on a party line vote.
Campus racial harassment and violence
As introduced, H.R. 4508 was silent on the issue of racial
and homophobic harassment and violence on college campuses. At
markup two amendments were considered on this issue: one
offered by Mr. Garrett (R-VA), and one by Ms. Wilson; The
Garrett Amendment passed on a voice vote, the Wilson amendment
failed on a recorded party-line vote. Committee Republicans
intended the Garrett amendment to preempt a presumably
uncomfortable vote on the Wilson amendment, as evidenced by the
fact that the two amendments were similar, but with three
distinct and substantive differences that render the language
of the Garrett amendment, and H.R. 4508 as reported out of
Committee, hollow. The adopted language fails to recognize the
documented increase of racial and anti-LGBTQ violence and
harassment, the rise of extremist organizations deliberately
targeting college campuses to spread hostile hate speech that
may violate an institution's obligations under Title VI of the
Civil Rights Act, and the lack of legal protection for issues
of sexual orientation and gender identity. Committee Democrats
note that the Garrett amendment (and the Thompson amendment
referenced below concerning campus hazing) was drafted by the
majority less than 15 minutes prior to the start of markup, a
breach of the Committee's good-faith practice of bipartisan
exchange of amendments 24 hours prior to the start of Committee
proceedings.
Committee Democrats recognize that all harassment and
violence targeted at students should be condemned. But it is
equally important to recognize both that specific types of
incidents are increasing, and that there are specific
organizations actively inciting harassment and violence
targeted at specific student groups on college campuses. The
Anti-Defamation League has documented the rise of incidents of
propaganda targeting ``minority groups, including Jews, Blacks,
Muslims, non-white immigrants, and the LGBT community.''\76\
While Rep. Wilson's amendment mentioned only 5 campus
incidents, the ADL has recorded 346 incidents of white
supremacist propaganda appearing on 216 different campuses
since September of 2016.\77\ 290 of those 346 incidents
occurred in 2017 and 18 have already occurred in 2018.\78\ This
documented increase in on-campus violence and harassment of
minority student groups is not addressed in the amendment
adopted by the Committee. There is a credible documented rise
both in incidents of harassment and violence and in organized
white supremacist outreach on campus and H.R. 4508 is silent on
these emerging and troubling trends.
---------------------------------------------------------------------------
\76\Anti-Defamation League, White Supremacist Propaganda Surges on
Campus, last updated January 29, 2018, available at https://
www.adl.org/education/resources/reports/white-supremacist-propaganda-
surges-on-campus.
\77\Id.
\78\Id.
---------------------------------------------------------------------------
While the adopted text of the Garret Amendment to H.R. 4508
fails to clarify what ``sex'' means in the context of section
703 of the Civil Rights Act of 1964, based on discussions with
Committee Republicans, Committee Democrats believe it is the
position of the Committee that ``sex'' includes an individual's
sex, gender, and sexual orientation, and the right to be free
from harassment and violence extends to individuals targeted
for being, or being perceived as gay, lesbian, bisexual,
transgender, or non-gender binary.
Failure to meaningfully address campus hazing
Given that 55 percent of students experience some form of
hazing and yet 95 percent of those incidents are never reported
to faculty or staff, Committee Democrats believe
reauthorization of HEA should do more to help students fight
the persistent problem of campus hazing.\79\ Although
institutions of higher education already submit some data on
campus safety to the Department of Education, policymakers and
the public lack information about hazing. Schools are required
to report incidents of assault, however incidents of hazing in
and around IHEs remain a factor in some student activities. To
better understand hazing on college campuses, Rep. Fudge
offered a common sense amendment to require colleges and
universities participating in federal financial aid programs to
disclose incidents of hazing in their Annual Security Report
and to report statistics of referrals for discipline and
arrests specific to hazing. Additionally, to curb these
incidents from happening, the amendment requires institutions
to implement a hazing education program for students. Similar
to the tactic employed by Majority members of the Committee to
avoid an uncomfortable vote that would condemn racial and anti-
LGBTQ violence, Rep. Thompson first offered an amendment that
expressed a sense of Congress in opposition to campus hazing,
but failed to include any meaningful reporting or training
requirements. Rep. Fudge spoke against the disingenuous nature
of the Thompson amendment before withdrawing her amendment.
---------------------------------------------------------------------------
\79\Allan, E.J. & Madden, M. (2008). Hazing in view: College
students at risk. Initial findings from the National Study of Student
Hazing. Retrieved from https://www.stophazing.org/wp-content/uploads/
2014/06/hazing_in_view_web1.pdf.
---------------------------------------------------------------------------
H.R. 4508 DOUBLES DOWN ON UNPROVEN PROGRAMS IN HIGHER EDUCATION, AT THE
EXPENSE OF STUDENTS
Rather than investing in effective programs, H.R. 4508
gives unfettered access to financial aid, to any institution
for competency-based education (CBE), defined loosely in the
bill. While quality CBE is a new, innovative, and flexible
model that makes higher education more accessible for today's
student, Committee Democrats fear that an expansion of CBE
without strong accountability provisions to accompany such an
expansion could result in poor outcomes for students and higher
risk for waste, fraud, and abuse to taxpayers. While advocating
for a full-bore expansion of CBE, H.R. 4508 does not similarly
increase access to other programs with a proven track record of
increasing access to higher education.
While many traditional higher education programs are based
on time, CBE allows students to advance through their degree
requirements upon demonstration of competency mastery. CBE is
still in the early stages of its development, and while there
are high-quality programs that are working, the best practices
for what constitutes an effective program at scale and how
certain requirements and regulations affect these programs are
still unknown. This lack of information underscores the need to
closely monitor, oversee, and evaluate limited expansion of CBE
programs that are accountable to taxpayers before unchecked
expansion of this untested model.
H.R. 4508 loosely defines CBE and makes all programs that
meet the definition eligible to receive financial aid, while
removing consumer and student protections to ensure program
quality. For example, decisions about what constitutes a
competency unit and amount of time required for an academic
year are left entirely up to the school and the accreditor,
making meaningful evaluation at-scale impossible. This
irresponsible expansion of CBE carries huge potential for abuse
that is likely to hurt students and working families.
Committee Democrats believe HEA should support innovation,
but not at the expense of students. Congress needs to have data
and evidence before creating a broad and unaccountable
expansion of an untested model of delivery. For this reason,
Rep. Polis offered an amendment to strike the bill's changes
and, instead, provides demonstration authority for up to 100
CBE programs to access federal student aid dollars. Unlike the
GOP bill, this amendment would require an annual evaluation of
each CBE program in the demonstration project to determine
program quality, the progress of participating students toward
degree completion, and a students'ability to repay their loans
and find employment upon graduation. The amendment would provide
necessary information about the students served in these CBE programs,
how their success compares to similarly situated students in
traditional programs, and the types of waivers needed to implement
quality CBE programs with fidelity. Despite the amendment's genesis in
bipartisan standalone legislation supported by the Majority and passed
by the full House of Representatives in the 114th Congress, the Polis
amendment was not adopted.
Higher education programs proven-effective and deserving of expansion
While the percentage of individuals enrolling in college is
higher than ever before, traditionally underserved students
continue to enroll in college at lower rates than their peers.
According to the What Works Clearinghouse, dual enrollment
programs have a positive effect on college enrollment, credit
accumulation, and degree attainment.\80\ Early college high
school programs also have a positive impact--almost all
students participating in early college high school programs
earn free college credit before the end of senior year,
including 30 percent who graduate high school with a college
degree or credential.\81\ Given that at least two out of three
early college high school students are students of color,
nearly three out of five are low-income, and almost half are
the first in their families to enroll in college, expanding
these programs can help close gaps in college enrollment.\82\
Democrats believe dual enrollment and early college high school
programs are part of the solution to increasing access to
higher education, tackling college costs, and improving
graduation rates--particularly for the students who need the
most help.
---------------------------------------------------------------------------
\80\What Works Clearinghouse, Dual Enrollment Programs, Inst. For
Educ. Stats., available at https://ies.ed.gov/ncee/wwc/
InterventionReport/671
\81\Reinventing High Schools for Postsecondary Success, Jobs for
the Future, available at http://www.jff.org/initiatives/early-college-
designs
\82\82 http://www.jff.org/sites/default/files/publications/
Unconventional--Wisdom--PDF--033011.pdf
---------------------------------------------------------------------------
Although H.R. 4508 includes a 10 percent carve out from
TRIO programs for a new grant program called ``innovative
measures promoting postsecondary access and completion
(IMPACT)'' that may be used for dual enrollment and early
college high schools, the available funding is woefully
insufficient.
Rep. Espaillat (D-NY) offered an amendment that would
create a competitive grant program funded at $250 million per
year for colleges and universities that partner with local
educational agencies to expand dual enrollment and early
college high school programs that primarily serve low-income
students. Funding would also be provided to States for the
development and implementation of a statewide strategy for
increasing access to dual enrollment programs. This amendment
would invest in strategies and programs that are proven to
significantly increase high school graduation rates, college
readiness, access to college, and college completion. Given the
important role dual enrollment can have on college access, Rep.
Polis also offered an amendment that would encourage IHEs to
create and expand opportunities for dual and concurrent
enrollment. The proposed grant would help cover the cost of
tuition, books, fees, or transportation. However, both
amendments failed on a party-line vote.
H.R. 4508 also fails to significantly invest in
international and foreign language programming. According to
the National Research Council, a pervasive lack of knowledge
about foreign cultures and languages in the United States
threatens the security of our country and our ability to
compete in the global economy.\83\ Additionally, defense,
intelligence, and diplomatic agencies have an established and
growing need for Americans with international knowledge,
advanced foreign language skills, and cultural awareness.\84\
The lack of qualified individuals for these in-demand positions
also leads to a lack of instructional leaders and teachers who
can adequately provide a robust international education
experience for undergraduate and post-baccalaureate students.
In an attempt to address these issues, the United States
invests in several domestic and international language-,
cultural-, and business-focused programs authorized under Title
VI of the HEA. H.R. 4508 ignores the demonstrated need for
investment in these programs, and cuts funding to Title VI. It
eliminates programs that help provide students with quality
foreign language and area studies, and programs that provide
teachers with resources and training to deliver quality
instruction.
---------------------------------------------------------------------------
\83\https://www.nap.edu/read/11841/chapter/2
\84\https://languagepolicy.org/wp-content/uploads/2015/04/Gail-
McGinn-Paper-govt-language-shortages.pdf
---------------------------------------------------------------------------
Rep. Davis (D-CA) offered an amendment to strike the
changes to Title VI made by H.R. 4508 and instead, increase the
authorization for funding to $125 million, indexed to inflation
for each successive fiscal year. The amendment sought to extend
authorization of six currently funded programs and align five
existing programs into two consolidated programs to better
address the 21st century needs for educational opportunities
that promote language, cultural, and professional competencies
for students, teachers, and employers. Even though this
amendment continues our nation's investment in language,
cultural, and regional education and expertise so that we can
compete economically and maintain robust defense, intelligence,
and diplomatic communities, the majority voted against the
amendment.
H.R. 4508 POSES SIGNIFICANT RISK TO VULNERABLE STUDENT POPULATIONS
Committee Democrats believe H.R. 4508 will negatively
affect military recruitment and veterans. According to the
Consumer Financial Protection Bureau (CFPB), more than 200,000
members of the military owe more than $2.9 billion in student
loan debt. The CFPB also indicates that military members are
worried about paying off their student loan debt and losing
Public Service Loan Forgiveness (PSLF). By creating one less
generous income-driven repayment plan and eliminating PSLF, we
worry that H.R. 4508 has the potential to curb military
interest and harm veterans paying off their student loans.
For decades, for-profit colleges have targeted veterans for
recruitment. By giving for-profit colleges increased access to
taxpayer funding, repealing the gainful employment rule, the
90/10 rule, the borrower defense rule, State authorization, and
weakening oversight mechanisms of for-profit colleges,
including accreditors' ability to assess recruiting and
admission practices, H.R. 4508 only makes it easier for for-
profits to abuse our service members. This is why Rep. Bonamici
introduced an amendment that would delay implementation of H.R.
4508 until the Office of the Inspector General (OIG) of the
U.S. Department of Education, in consultation with the OIG of
the U.S. Department of Veterans Affairs, certifies that
implementation of the legislation does not lead to fraud and
abuse of veterans.
H.R. 4508 also places low-income students at risk. The GOP
bill eliminates grant programs for needy students, ends
subsidized loans for low-income individuals, and creates
uncertainty during loan repayment. By eliminating these
programs, H.R. 4508 raises the price of college for millions of
students. To ensure low-income students are not hurt, Rep.
Bonamici introduced an amendment that would stop H.R. 4508 from
taking effect until the Government Accountability Office (GAO)
certifies that such implementation does not result in decreased
availability of federal grant aid and increased student loan
debt for low-income students.
H.R. 4508 caps borrowing and drives more borrowers to
private student loans, which Congressional Democrats fear will
lead to an increase in private student loan debt for borrowers
and cosigners. In an effort to determine if this is in fact the
case, Rep. Bonamici also offered a separate amendment that
would require GAO to certify that H.R. 4508 does not increase
total student loan debt.
Committee Republicans assert that H.R. 4508 will meet the
needs of today's students and improve college access,
affordability, and completion. Yet, despite these unfounded
claims, Committee Republicans rejected all four amendments
offered by Rep. Bonamici to require good government watchdog
agencies to study and confirm that the policies of the
underlying bill do no harm to vulnerable student populations
prior to enactment. If Republicans believed in the policies of
H.R. 4508, there should be no hesitation to prove the
legislation's positive impact prior to subjecting students and
families to the bill's untested proposals.
H.R. 4508 IS SILENT ON BARRIERS TO EQUITY IN HIGHER EDUCATION FACING
VULNERABLE STUDENTS
While H.R. 4508 is a comprehensive rewrite of HEA, there
are many barriers to equity in higher education that the bill
fails to address. Committee Democrats believe that many of
these issues deserve consideration in a comprehensive rewrite
of HEA.
Status of DREAMers
In 2012, the federal government asked undocumented
immigrants who were brought here at a young age to turn
themselves in to the federal government in exchange for work
authorization and temporary relief from deportation. Since
then, nearly 800,000 undocumented young people received
temporary permission to live and work in this country through
the Deferred Action for Childhood Arrivals (DACA) program.
According to the Center for American Progress, DACA recipients
stand poised to contribute more than $460 billion to the U.S.
gross domestic product over the next decade.\85\ However, in
2017, President Trump announced the arbitrary end of DACA and
exposed these hard-working individuals to fear of deportation
and uncertainty about their future.
---------------------------------------------------------------------------
\85\Nicole Prchal Svajlenka, Tom Jawetz, and Angie Bautista Chavez,
A New Threat to DACA Could Cost States Billions of Dollars, Ctr. for
Am. Prog., Jul. 21, 2017, available at https://
www.americanprogress.org/issues/immigration/news/2017/07/21/436419/new-
threat-daca-cost-states-billions-dollars/.
---------------------------------------------------------------------------
Using data from the Migration Policy Institute on DACA-
eligible individuals to estimate educational attainment among
DACA individuals, we calculate that there are approximately
160,000 DACA students enrolled in college. Further, the
analysis leads us to believe that roughly 88,000 DACA
individuals have completed some college and an additional
40,000 have at least a bachelor's degree.\86\ DACA recipients
are current and future social workers, teachers, engineers,
lawyers, doctors, small-business owners and more. They are
integral to our communities and economies.
---------------------------------------------------------------------------
\86\Analysis by House Education and the Workforce Committee Staff
using Migration Policy Institute data available at https://
www.migrationpolicy.org/research/education-and-work-profiles-daca-
population.
---------------------------------------------------------------------------
Committee Democrats believe Congress must pass a permanent
solution so that these individuals no longer have to live under
the threat of deportation. Multiple stakeholders in the higher
education community, including several hundred colleges and
universities, have expressed their support for such a solution.
Rep. Grijalva offered the Dream Act--a bipartisan and widely
supported bill that would create a path to citizenship for
undocumented individuals who moved to the United States as
children--as an amendment. This amendment sought to ensure that
these individuals could reach their full potential as legal
citizens and allow them to more fully contribute to their
communities and our economy. Unfortunately, Republican
Committee members ruled the amendment non-germane.
Rep. Espaillat introduced an amendment to allow
undocumented individuals who meet certain requirements akin to
DACA to become eligible for federal student aid. While this
amendment would stop short of the full DREAM Act, it highlights
the value of these individuals to our higher education system
and national fabric. The government already invests in their K-
12 education and allowing them to enroll and complete college
so that they can continue to contribute with higher earnings is
not only sound economic policy, but also it is the human and
moral thing to do. However, this amendment failed on a party
line vote.
Improving the financial aid process for low-income students
Data show that students who complete the FAFSA are more
likely to attend and complete college than students who do not
complete the form.\87\ Unfortunately, only three out of five
high school graduates (61 percent) from the Class of 2017
completed the FAFSA--leaving approximately $2.3 billion in
unused Pell Grants.\88\ Although H.R. 4508 takes positive steps
to increase access to the FAFSA by directing the Department of
Education to make the FAFSA available using a mobile ``app,''
the Department already has the authority to create such a tool.
In fact, the Department of Education announced its plan for
this app in November 2017.\89\
---------------------------------------------------------------------------
\87\FAFSA Completion Challenge, National College Access Network,
available at http://www.collegeaccess.org/FAFSAchallenge.
\88\National FAFSA Completion Rate for High School Seniors,
National College Access Network, available at http://
www.collegeaccess.org/FAFSACompletionRate.
\89\Joelle Fredman, FSA COO Unveils Mobile FAFSA App, Nat'l Assn.
of Stud. Fin. Aid Admin. (Nov. 30, 2017) available at https://
www.nasfaa.org/news-item/13799/FSA_Unveils_Mobile_FAFSA_App.
---------------------------------------------------------------------------
Rep. Blunt Rochester offered an amendment that reduces the
complexity and length of the Free Application for Federal
Student Aid (FAFSA) and increases support for vulnerable
populations. The amendment would restructure the FAFSA to
better fit each student's financial situation and create a
three-pathway model that asks fewer questions to students with
less complex financial situations. The amendment also prohibits
the Secretary of Education from burdening the lowest-income
students with difficult financial questions that lead to confusion and
produce unnecessary barriers to FAFSA completion. To verify the
information, the Secretary of Education is directed to enter a
Memorandum of Understanding with the Secretary of Health and Human
Services, the Secretary of Agriculture, and the Secretary of the
Treasury to allow for the exchange of information needed to verify
receipt of eligible federal benefits.
For FAFSA applicants who did not receive one of the means-
tested Federal benefits outlined in the amendment but who have
simple tax returns, this amendment would reverse cuts to the
income threshold at which a student receives a zero-dollar
estimated family contribution (EFC) back to $34,000 and pegs it
to inflation. It also removes the requirement that independent
students have dependents to be eligible for an automatic zero
EFC. Unlike the expansion of the Simplified Needs Test created
in H.R. 4508 that only helps middle-income families qualify for
aid, the provisions in Rep. Blunt Rochester's amendment would
allow low-income students to benefit from a maximum Pell Grant
award.
Additionally, because one in 10 Pell students who do
complete the FAFSA and persist past their first year of college
fail to re-file despite the overwhelming likelihood of
maintaining eligibility for Federal student aid, this amendment
asks high school seniors who qualify for Pell to only fill out
the FAFSA once, as opposed to filing annually. The amendment
also sought to codify the use of prior-prior year (PPY) income
data and increase support for working students by shielding
more income (35 percent increase) from any offset to financial
aid. Further, the amendment sought to require the FAFSA to be
available in multiple languages, allows DREAMers to afford
college, reinstates Pell Grant eligibility for students with
drug-related offenses, and creates a standardized financial aid
award letter. Committee Republicans voted against the Blunt
Rochester amendment.
College Access for American Citizens of the Outlying Areas
Graduates from high schools in the Commonwealth of the
Northern Mariana Islands and American Samoa have no accredited
four-year IHEs to attend in their Territories. This leaves
students with no affordable option, forcing them to move from
home and suffer significant personal cost in order to pursue a
college degree beyond two years. To address this problem, Rep.
Sablan introduced an amendment modeled after the District of
Columbia Tuition Assistance Grant Program (DC TAG) that sought
to authorize $5 million dollars to cover the difference between
the cost of in-State and out-of-State tuition for these
students. The amendment failed along a party-line vote.
Remedial Education Reform
Our nation's current system of remediation in higher
education is failing working families by increasing the cost of
college and, all too often, leaving students without a
meaningful degree. In 2010, fifty-one percent of students
entering public two-year colleges and more than one in four
students (29 percent) entering public four-year universities
were required to take remedial coursework during their college
experience. Unfortunately, only 50 percent of students in
remedial education will ever complete a credit-bearing course,
with even a lower percentage of students achieving a
degree.\90\
---------------------------------------------------------------------------
\90\Laura Jimenez, Scott Sargrad, Jessica Morales, and Maggie
Thompson, The Cost of Catching Up, Ctr. For Am. Prog. (Sept. 2016)
available at https://cdn.americanprogress.org/wp-content/uploads/2016/
09/12082503/CostOfCatchingUp-report.pdf.
---------------------------------------------------------------------------
Rep. Norcross offered an amendment to provide competitive
grants to a geographically diverse set of colleges and
universities of various sizes to develop or improve remedial
education based on five models that have shown success during
small-scale implementation. Aside from implementing evidence-
based models to improve remediation, students in programs
funded under this grant may also use federal student aid
dollars to support up to two years of remediation, removing
another barrier to on-time completion for remedial students.
The amendment requires evaluation of program effectiveness in
order to determine the best systems of support that lead to
college degree completion. The amendment was not adopted and
failed by party-line vote.
Improving Access for Students with Disabilities
Rep. DeSaulnier (D-CA) offered an amendment to improve
services for students with disabilities. Committee Democrats
believe that reauthorization of HEA must recognize the fact
that we are graduating more students with disabilities from
high school than ever before. Yet, very few students with
disabilities enter higher education and even fewer make it to
completion. Rep. DeSaulnier's amendment would strike H.R.
4508's repeal of a program to train faculty to deliver
accessible instruction; establish an Office of Accessibility in
every IHE; provide a grant for university-wide implementation
of universal design for learning; and expand higher education
options for students with intellectual disabilities. The
DeSaulnier amendment also strikes H.R. 4508's repeal of Title
VIII, restoring a program that trains individuals to provide
closed captioning services. The amendment was rejected with all
Committee Republicans voting ``no.''
Foster and Homeless Youth
A report produced by the National Working Group on Foster
Care and Education indicates that although 84 percent of 17-18
year olds in foster care want to go to college, less than 20
percent of those who graduate high school attend college.
Furthermore, less than 10 percent of those that attempt college
will eventually complete a postsecondary credential by the age
of 25. This is why increasing access to and completion from
college for these youth is important. To increase access, these
youth need assistance when applying to and enrolling in college
and targeted support while in college.
Rep. Krishnamoorthi offered an amendment that sought to
improve college access, retention, and completion rates for
foster and homeless youth by substantially improving State
capacity to support these students as they transition to and
attend college. In addition to these State formula grants, the
amendment would help develop ``Institutions of Excellence''
committed to serving foster and homeless youth through robust
support services, in collaboration with organizations skilled
at helping these student populations, and substantial financial
assistance. However, the amendment was voted down by Republican
Committee Members.
Increased Funding Authorization for On-Campus Child Care
Committee Democrats believe that it is important to provide
the necessary tailored supports to help students from all walks
of life succeed in college. Since 2000, the number of student
parents enrolled in higher education programs has increased by
50 percent. Today, more than one in four undergraduate students
have children.\91\ In order to attend class, these students
need childcare during the day. However, childcare can be cost
prohibitive. According to the Economic Policy Institute, infant
care is more expensive than the average in-State college
tuition at public 4-year universities.\92\
---------------------------------------------------------------------------
\91\https://iwpr.org/issue/special-websites/student-parent-success-
initiative/
\92\http://www.epi.org/files/2015/child-care-is-out-of-reach.pdf
---------------------------------------------------------------------------
In 1998, Congress authorized the Child Care Access Means
Parents in School (CCAMPIS) program to help institutions
provide campus-based childcare services for low-income student
parents. Although there has been an increase in college
enrollment by student parents throughout the years, the
appropriation amounts for CCAMPIS has decreased. Currently,
CCAMPIS is appropriated at just over $15 million, which is a
steep cut from its original appropriated level of $25 million.
In H.R. 4508, Committee Republicans propose flat funding this
vital program's authorization level.
Rep. Norcross introduced an amendment to increase the
CCAMPIS authorization to $67 million, which is equal to the
original authorization level of $45 million in FY 1999 adjusted
for inflation. The amendment also adjusts the authorization
level in future years by inflation. More student parents are
going to college, and childcare costs are increasing. Committee
Democrats believe Congress should be helping parents earn their
degree, not penalizing them because they have children.
Committee Republicans opposed the Norcross amendment.
Additional Supports for Vulnerable Student Populations
Committee Democrats also offered amendments to authorize
grants to ensure institutions have the resources necessary to
support students who are veterans through degree completion
(Rep. Grijalva) and provide tuition assistance for Native
American Students (Rep. Polis). The Grijalva amendment was
defeated along a party-line vote. The Polis amendment was
defeated and only received one Republican vote.
DEMOCRATIC AMENDMENTS OFFERED DURING MARKUP OF H.R. 4508
Committee Democrats put forward 40 amendments to improve
the bill. These amendments would have expanded the purchasing
power of the Pell Grant, reformed the federal student loan and
campus based aid programs to serve students and institutions
better, and provided Dreamers with both permanent status in the
country and access to federal student aid. Additional
Democratic amendments sought to ensure fiscal and programmatic
accountability for for-profit institutions, allow for student-
level data to improve higher education outcomes and policies,
and restore the Public Service Loan Forgiveness (PSLF) Program.
Democrats also offered proposals to simplify and improve the
FAFSA, improve competency-based education programs, restore
funding for teacher preparation programs and prospective
teachers, and invest in communitycolleges, MSIs, foster
students, homeless students, and students with disabilities. Committee
Republicans rejected thirty-seven of the thirty-nine Democratic
amendments that were considered.
Amdt. Offered By Description Action Taken
#2 Ms. Davis Strikes H.R. 4508 provisions to make Defeated
improvements to the Pell Grant Program
#4 Mr. Grijalva Attaches the DREAM Act to the underlying Ruled non-germane
bill
#6 Mr. Espaillat Makes DREAMers eligible for Federal Defeated
Student Aid
#8 Ms. Fudge Prevents and addresses campus hazing Withdrawn
Ms. Wilson through improved reporting requirements
#10 Ms. Shea-Porter Clarifies H.R. 4508 requirements that Adopted
institutions of higher education provide
programming to prevent opioid and other
drug abuse
#12 Mr. Takano Restores For-Profit institutional Defeated
Mr. Krishnamoorthi accountability reflective of the risk to
taxpayers posed by the sector
#14 Mr. Courtney Makes ONE Loan borrowers eligible to Defeated
participate in Public Service Loan
Forgiveness (PSLF)
#16 Ms. Bonamici Strikes H.R. 4508's ONE Loan, retain the Defeated
Mr. Takano Direct Loan Program, and makes other
Ms. Wilson changes to ensure maximum benefit to low-
income borrowers
#18 Mr. Polis Improves postsecondary data quality by Defeated
striking the federal ban on the student
unit record
#20 Ms. Blunt Rochester Simplifies the Free Application for Defeated
Mr. Sablan Federal Student Aid (FAFSA) process to
ensure increased completion by and
maximum benefit to low-income students
and families (Simple FAFSA Act)
#22 Mr. Courtney Allows students to refinance student Defeated
loans
#24 Ms. Wilson Restores support for teachers in HEA by Defeated
Mr. Polis striking H.R. 4508 program repeals and
increasing authorized funding levels
#26 Mr. Sablan Authorizes grants that provide tuition Defeated
assistance for community college
graduates in the Commonwealth of the
Northern Mariana Islands and American
Samoa to pursue four year degrees
#28 Ms. Bonamici Strikes H.R. 4508's repeal of Federal Defeated
Supplemental Educational Opportunity
Grant (FSEOG), reauthorizes the Perkins
Loan Program, and makes improvements to
Federal Work-Study
#30 Ms. Adams Strikes H.R. 4508 changes to Titles III, Defeated
V, and other titles and replace with
program improvements to support Minority
Serving Institutions (MSI), including
the restoration of mandatory
appropriations and authorization of an
MSI innovation fund
#31 Mr. Scott Authorizes a federal-state partnership to Defeated
provide students with access to
affordable degrees
#32 Ms. Davis Renames the program authorized under H.R. Defeated
4508 Title II as `earn and learn' and
ensures quality of apprenticeship
programs receiving federal funds
#34 Mr. Norcross Authorizes grants to community colleges Defeated
to improve degree completion
#36 Mr. Espaillat Authorizes grants to improve access to Defeated
Ms. Fudge quality Dual Enrollment programs for low-
income students
#37 Mr. Norcross Authorizes grants to support improvements Defeated
to remedial education
#38 Mr. DeSaulnier Improves access to higher education for Defeated
students with disabilities
#39 Mr. Norcross Authorizes increase in federal funding Defeated
for campus-based child care
#41 Mr. Scott Restores accountability for religious Defeated
institutions by striking H.R. 4508
provisions allowing the religious or
moral beliefs of such institutions to
preempt federal law
#42 Ms. Davis Strikes H.R. 4508 provisions that will Defeated
Ms. Bonamici negatively impact efforts to address
campus sexual assault
#43 Ms. Davis Restores and makes improvements to Title Defeated
VI programs for foreign and
international education
#45 Ms. Wilson Expresses the Sense of Congress that Defeated
college campuses should be free from
racial harassment and hostility
#47 Mr. Krishnamoorthi Supports postsecondary access and Defeated
completion for foster youth and students
who are homeless
#49 Mr. Krishnamoorthi Strikes H.R. 4508 language limiting the Defeated
distribution of voter registration
information
#51 Ms. Bonamici Ensures that H.R. 4508 shall not take Defeated
effect until GAO certifies that
implementation will not negatively
impact military recruitment and
retention
#53 Mr. Grijalva Stops the garnishment of social security Ruled non-germane
benefits to pay for student debt
#54 Mr. Grijalva Authorizes grants to establish, maintain, Defeated
and improve veteran student centers
#55 Ms. Bonamici Ensures that H.R. 4508 shall not take Defeated
effect until GAO certifies that
implementation will not result in
decreased availability of federal grant
aid and increased student loan debt for
low-income students
#56 Ms. Bonamici Ensures that H.R. 4508 shall not take Defeated
effect until the U.S. Department of
Education Office of Inspector General,
in consultation with U.S. Department of
Veterans Affairs Office of Inspector
General, certifies that such
implementation shall not result in fraud
and abuse of students who are veterans
#57 Ms. Bonamici Ensures that H.R. 4508 shall not take Defeated
effect until GAO certifies that
implementation will not increase total
student loan debt
#58 Mr. Polis Ensures Congress has the data on Defeated
effectiveness and best practices
necessary to expand quality Competency-
Based Education (CBE)
#59 Mr. Polis Authorizes a grant program to support Defeated
dual enrollment
#60 Mr. Polis Amends FERPA to allow for reverse Adopted
transfer of student data
#61 Mr. Polis Authorizes grants to support the Defeated
expansion of open textbooks
#62 Mr. Polis Makes clear that it is the Sense of Defeated
Congress that online educational
material should not be blocked or
otherwise censored by internet providers
#63 Mr. Polis Provides federal funding for the Native Defeated
American Tuition Waiver program
CONCLUSION
The Committee, as recently as last Congress (114th) worked
on a bipartisan basis to develop, introduce, and pass bills
addressing discrete issues in higher education such as FAFSA
simplification, enhanced student financial counseling, data
transparency, and MSI program reform. Committee Democrats feel
there are other policy areas in higher education of consensus
that are ripe for bipartisan agreement, including loan
servicing and accreditation reform. As evidenced by the policy
proposals comprising H.R. 4508, Committee Republicans
prioritize the delivery of financial aid to for-profit
institutions and simplification of federal student aid that
would make college more expensive for students and working
families. Committee Democrats, as evidenced by the amendments
offered during markup, prioritize increased investment in
students and under-resourced institutions through the
availability of more generous federal student aid products and
institutional grants. While stark differences in policy
approach to reforming and reauthorizing the HEA remain,
Committee Democrats remain firm in their belief that there
exists a bipartisan path forward to comprehensive HEA
reauthorization that improves services and supports to ensure
increased access to an affordable degree that leads to a good-
paying job. Committee Democrats encourage the majority to
abandon the hyper-partisan policies of H.R. 4508 and engage in
bipartisan negotiations.
For the reasons stated above, Committee democrats
unanimously opposed H.R. 4508 when the Committee on Education
and the Workforce Committee considered it on December 12, 2017.
We urged the House of Representatives to do the same unless
there is a drastic revision of H.R. 4508.
Robert C. ``Bobby'' Scott,
Ranking Member.
Susan A. Davis.
Raul M. Grijalva.
Joe Courtney.
Marcia L. Fudge.
Jared Polis.
Gregorio Kilili Camacho Sablan.
Frederica S. Wilson.
Suzanne Bonamici.
Mark Takano.
Alma S. Adams.
Mark DeSaulnier.
Donald Norcross.
Lisa Blunt Rochester.
Raja Krishnamoorthi.
Carol Shea-Porter.
Adriano Espaillat.
[all]