I
108th CONGRESS
2d Session
H. R. 4283
IN THE HOUSE OF REPRESENTATIVES
May 5, 2004
Mr. Boehner (for himself and Mr. McKeon) introduced the following bill; which was referred to the Committee on Education and the Workforce
A BILL
To amend and extend the Higher Education Act of 1965.
Short title; table of contents
Short title
This Act may be cited as the &short-title1;
.
Table of contents
Sec. 1. Short title; table of contents
Sec. 2. References; effective date
Title I—General Provisions
Sec. 101. Definition of institution of higher education
Sec. 101. Definition of institution of higher education
Sec. 102. Institutions outside the United States
Sec. 123. Restrictions on funds for for-profit schools
Sec. 102. New borrower definition
Sec. 103. Student speech and association rights
Sec. 104. Extension of National Advisory Committee on Institutional Quality and Integrity
Sec. 105. Alcohol and drug abuse prevention
Sec. 106. Prior rights and obligations
Sec. 107. Consumer information and public accountability in higher education
Sec. 131. Consumer information and public accountability in higher education
Sec. 108. Performance-based organization
Title II—Teacher Preparation
Sec. 201. Sense of the House of Representatives
Title III—Institutional aid
Sec. 301. Title III grants for American Indian Tribally Controlled Colleges and Universities
Sec. 302. Alaska Native and Native Hawaiian-serving institutions
Sec. 303. Grants to part B institutions
Sec. 304. Technical amendments
Sec. 305. Title III authorizations
Title IV—Student assistance
Part A—Grants to Students
Sec. 401. Pell Grants
Sec. 401A. Pell Grants Plus: achievement grants for State scholars
Sec. 402. TRIO programs
Sec. 403. GEARUP
Sec. 404. Federal Supplemental Educational Opportunity Grants
Sec. 405. LEAP
Sec. 406. HEP/CAMP program
Sec. 407. Byrd Scholarship
Sec. 408. Child care access
Sec. 409. Learning anytime anywhere partnerships
Sec. 410. Technical amendments
Part B—Federal Family Education Loan Program
Sec. 421. Reauthorization of Federal Family Education Loan Program
Sec. 422. Loan limits
Sec. 423. Interest rates and special allowances
Sec. 424. Additional loan terms and conditions
Sec. 425. Consolidation loan changes
Sec. 426. Unsubsidized Stafford loans
Sec. 427. Teacher recruitment and retention
Sec. 428. Additional administrative provisions
Part C—Federal Work-Study Programs
Sec. 441. Authorization of appropriations
Sec. 442. Community service
Sec. 443. Allocation of funds
Sec. 444. Books and supplies
Sec. 445. Job location and development
Sec. 446. Work colleges
Part D—Federal Direct Loan Program
Sec. 451. Reauthorization of the Direct Loan Program
Part E—Federal Perkins Loan Program
Sec. 461. Reauthorization of program
Sec. 462. Loan terms and conditions
Sec. 463. Loan cancellation
Sec. 464. Technical amendments
Part F—Need Analysis
Sec. 471. Simplified needs test improvements
Sec. 472. Additional need analysis amendments
Part G—General Provisions Relating to Student Financial Assistance
Sec. 481. Definition of academic year
Sec. 482. Distance education
Sec. 483. Expanding information dissemination regarding eligibility for Pell Grants
Sec. 484. Student eligibility
Sec. 485. Institutional refunds
Sec. 486. Institutional and financial assistance information for students
Sec. 487. College access initiative
Sec. 485D. College access initiative
Sec. 488. Distance education demonstration program
Sec. 489. College affordability demonstration program
Sec. 486A. College affordability demonstration program
Sec. 490. Program participation agreements
Sec. 491. Additional technical and conforming amendments
Part H—Program Integrity
Sec. 495. Accreditation
Title V—Developing institutions
Sec. 501. Definitional changes
Sec. 502. Assurance of enrollment of needy students
Sec. 503. Additional amendments
Sec. 504. Title V authorization
Title VI—Title VI amendments
Sec. 601. Sense of the House
Title VII—Title VII amendments
Sec. 701. Sense of the House
Title VIII—Clerical amendments
Sec. 801. Clerical amendments
Title IX—Student loan forgiveness for families of 9/11 victims
Sec. 901. Cancellation of student loan indebtedness for spouses, surviving joint debtors, and parents
Title X—Amendments to other education laws
Part A—Education of the Deaf Act of 1986
Sec. 1001. Laurent Clerc National Deaf Education Center
Sec. 1002. Authority
Sec. 1003. Agreement for the National Technical Institute for the Deaf
Sec. 1004. Definitions
Sec. 1005. Audit
Sec. 1006. Reports
Sec. 1007. Liaison for educational programs
Sec. 1008. Federal endowment programs for Gallaudet University and the National Technical Institute for the Deaf
Sec. 1009. Oversight and effect of agreements
Sec. 1010. Authorization of appropriations
Part B—Additional education laws
Sec. 1021. Amendment to Higher Education Amendments of 1998
Sec. 1022. Tribally Controlled College or University Assistance Act of 1978
Sec. 1023. Navajo Community College Act
Sec. 1024. Education Amendments of 1992
Sec. 1025. Study of student learning outcomes and public accountability
References; effective date
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.).
Effective date
Except as otherwise provided in this Act, the amendments made by this Act shall take effect on the date of enactment of this Act.
General Provisions
Definition of institution of higher education
Amendment
Title I is amended by striking sections 101 and 102 (20 U.S.C. 1001, 1002) and inserting the following:
Definition of institution of higher education
Institution of higher education
For purposes of this Act, the term institution of higher education means an educational institution in any State that—
admits as regular students only persons who—
meet the requirements of section 484(d)(3), or have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; or
are beyond the age of compulsory school attendance in the State in which the institution is located;
is legally authorized within such State to provide a program of education beyond secondary education;
is accredited by a nationally recognized accrediting agency or association; or
if not so accredited, is a public or nonprofit 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
meets either of the following criteria:
is a nonprofit, for-profit, or public institution that—
provides an educational program for which the institution awards a bachelor’s degree;
provides not less than a 2-year educational program which is acceptable for full credit towards such a degree; or
provides not less than a 1-year program of training that prepares students for gainful employment in a recognized occupation; or
is a nonprofit, for-profit, or public institution that provides an eligible program (as defined in section 481)—
for which the institution awards a certificate; and
that prepares students for gainful employment in a recognized occupation.
Additional limitations
For-profit postsecondary institutions
Duration of accreditation
A for-profit institution shall not be considered to be an institution of higher education unless such institution is accredited by a nationally recognized accrediting agency or association and such institution has been in existence for at least 2 years.
Institutional eligibility only for competitive grants
For the purposes of any program providing grants to institutions for use by the institution (and not for distribution among students), a for-profit institution shall not be considered to be an institution of higher education under this section if such grants are awarded on any basis other than competition on the merits of the grant proposal or application.
Postsecondary vocational institutions
A nonprofit or public institution that meets the criteria of subsection (a)(4)(B) shall not be considered to be an institution of higher education unless such institution has been in existence for at least 2 years.
Limitations based on management
An institution shall not be considered to meet the definition of an institution of higher education in this section if—
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 filed for bankruptcy under chapter 11 of title 11, United States Code, between July 1, 1998, and December 1, 1998; or
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.
Limitation on course of study or enrollment
An institution shall not be considered to meet the definition of an institution of higher education in subsection (a) if such institution—
offers more than 50 percent of such institution's courses by correspondence (excluding courses offered by telecommunications as defined in 484(l)(4)), unless the institution is an institution that meets the definition in section 3(3)(C) of the Carl D. Perkins Vocational and Technical Education Act of 1998;
enrolls 50 percent or more of the institution's students in correspondence courses (excluding courses offered by telecommunications as defined in 484(l)(4)), unless the institution is an institution that meets the definition in section 3(3)(C) of the Carl D. Perkins Vocational and Technical Education Act of 1998, except that the Secretary, at the request of the institution, may waive the applicability of this subparagraph to the 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;
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 a bachelor's degree, or an associate's degree or a postsecondary certificate, respectively; or
has a student enrollment in which more than 50 percent of the students either do not meet the requirements of section 484(d)(3) or 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 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 meet the requirements of section 484(d)(3) or do not have a secondary school diploma or its recognized equivalent.
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 or training offered.
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.
Loss of eligibility
An institution of higher education shall not be considered to meet the definition of an institution of higher education in this section 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.
Institutions outside the United States
Institutions outside the United States
In General
An institution outside the United States shall be considered to be an institution of higher education only for purposes of part B of title IV if the institution is comparable to an institution of higher education, as defined in section 101, is legally authorized by the education ministry (or comparable agency) of the country in which the school is located, and has been approved by the Secretary for purposes of that part. The Secretary shall establish criteria by regulation for that approval and that determination of comparability. An institution may not be so approved or determined to be comparable unless such institution is a public or nonprofit institution, except that, subject to paragraph (2)(B), a graduate medical school or veterinary school located outside the United States may be a for-profit institution.
Medical and veterinary school criteria
In the case of a graduate medical or veterinary school outside the United States, such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made, insured, or guaranteed under part B of title IV unless—
in the case of a graduate medical school located outside the United States—
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 B of title IV; and
at least 60 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 B of title IV; or
the institution has a clinical training program that was approved by a State as of January 1, 1992; or
in the case of a veterinary school located outside the United States that is not a public or nonprofit institution, the institution’s students complete their clinical training at an approved veterinary school located in the United States.
Advisory panel
In general
For the purpose of qualifying a foreign medical school as an institution of higher education only for purposes of part B of title IV, the Secretary shall publish qualifying criteria by regulation and establish an advisory panel of medical experts that shall—
evaluate the standards of accreditation applied to applicant foreign medical schools; and
determine the comparability of those standards to standards for accreditation applied to United States medical schools.
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 subsection (a)(2) shall render such institution ineligible for the purpose of part B of title IV.
Special rule
If, pursuant to this section, an institution located outside the United States loses eligibility to participate in the programs under part B of 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 B of title IV while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.
.
Restrictions on funds for for-profit schools
Part B of title I is amended by inserting after section 122 (20 U.S.C. 1011k) the following new section:
Restrictions on funds for for-profit schools
In general
Notwithstanding any other provision of this Act authorizing the use of funds by an institution of higher education that receives funds under this Act, none of the funds made available under this Act to a for-profit institution of higher education may be used for—
construction, maintenance, renovation, repair, or improvement of classrooms, libraries, laboratories, or other facilities;
establishing, improving, or increasing an endowment fund; or
establishing or improving an institutional development office to strengthen or improve contributions from alumni and the private sector.
Exception
.
Conforming amendments
Section 114(a) (20 U.S.C. 1011c(a)) is amended by striking (as defined in section 102)
.
Section 428K(b) (20 U.S.C. 1078–11(b)) is amended by striking paragraph (5).
Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is amended by striking section 102
and inserting section 101
.
Subsection (d) of section 484 (20 U.S.C. 1091(d)) is amended by striking the designation and heading of such subsection and inserting the following:
Satisfaction of secondary education standards
.
Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is amended by striking 102(a)(3)(A), 102(a)(3)(B)
and inserting 101(b)(4)(A), 101(b)(4)(B)
.
Section 487(c)(1)(A)(iii) (20 U.S.C. 1094(c)(1)(A)(iii)) is amended by striking section 102(a)(1)(C)
and inserting section 102
.
Section 487(d) (20 U.S.C. 1094(d)) is amended by striking section 102
and inserting section 101
.
Subsections (j) and (k) of section 496 (20 U.S.C. 1099b(j), (k)) are each amended by striking section 102
and inserting section 101
.
Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) is amended by striking section 102(a)(1)(C)
and inserting section 102
.
Section 498(i) (20 U.S.C. 1099c(i)) is amended by striking section 102
and inserting section 101
.
Section 498(j)(1) (20 U.S.C. 1099c) is amended by striking except that such branch shall not be required to meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C) prior to seeking such certification
and inserting except that such branch shall not be required to be in existence for at least 2 years prior to seeking such certification
.
Section 498B(b) (20 U.S.C. 1099c–2(b)) is amended by striking section 102(a)(1)(C)
and inserting section 102
.
New borrower definition
Paragraph (7) of section 103 (20 U.S.C. 1003) is amended to read as follows:
New borrower
The term new borrower when used with respect to any date for any loan under any provision of—
part B or part D of title IV means an individual who on that date has no outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under either of those parts; and
part E of title IV means an individual who on that date has no outstanding balance of principal or interest owing on any loan made under that part.
.
Student speech and association rights
Section 112 (20 U.S.C. 1011a) is amended—
by amending subsection (a) to read as follows:
Protection of rights
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; and
an institution of higher education should ensure that a student attending such institution on a full- or part-time basis is—
evaluated solely on the basis of their reasoned answers and knowledge of the subjects and disciplines they study and without regard to their political, ideological, or religious beliefs;
assured that the selection of speakers and allocation of funds for speakers, programs, and other student activities will utilize methods that promote intellectual pluralism and include diverse viewpoints;
presented diverse approaches and dissenting sources and viewpoints within the instructional setting; and
not excluded from participation in, denied the benefits of, or subjected to discrimination or official sanction on the basis of their political or ideological beliefs 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.
; and
in subsection (b)(1), by inserting after higher education
the following: , provided that the imposition of such sanction is done objectively, fairly, and without regard to the student’s political, ideological, or religious beliefs
.
Extension of National Advisory Committee on Institutional Quality and Integrity
Section 114(g) (20 U.S.C. 1011c(g)) is amended by striking 2004
and inserting 2011
.
Alcohol and drug abuse prevention
Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding fiscal years
and inserting 5 succeeding fiscal years
.
Prior rights and obligations
Section 121(a) (20 U.S.C. 1011j(a)) is amended by striking 1999 and for each of the 4
each place it appears and inserting 2005 and for each of the 5
.
Consumer information and public accountability in higher education
Section 131 (20 U.S.C. 1015) is amended to read as follows:
Consumer information and public accountability in higher education
Data collection
Data systems
The Secretary shall continue to redesign the relevant parts of the postsecondary education data systems to include additional data as required by this section and to continue to improve the usefulness and timeliness of data collected by such systems.
Information from institutions
The Commissioner of Education Statistics shall collect, for each academic year and in accordance with standard definitions developed by the Commissioner of Education Statistics (including definitions developed under section 131(a)(3)(A) as in effect on the day before the date of enactment of the &short-title1;) from at least all institutions of higher education participating in programs under title IV, and such institutions shall provide, the following data:
The tuition and fees charged for a full-time undergraduate student.
The room and board charges for such a student.
The cost of attendance for a full-time undergraduate student, consistent with the provisions of section 472.
The average amount of financial assistance received by a full-time undergraduate student, including—
each type of assistance or benefits described in 428(a)(2)(C)(ii);
fellowships;
institutional and other assistance; and
loans under parts B and D.
The number of students receiving financial assistance described in each clause of subparagraph (D).
The average net price for students receiving Federal, State, or institutional financial assistance.
The institutional instructional expenditure per full-time equivalent student.
Data dissemination
The Secretary shall make available the data collected pursuant to this section, including an institution’s college affordability index as calculated in accordance with subsection (c). Such data shall be made available in a manner that permits the review and comparison of data submissions of individual institutions of higher education. Such data shall be presented in a form that is easily accessible and understandable and allows parents and students to make informed decisions based on the prices for typical full-time undergraduate students and the institution’s rate of cost increase.
College Affordability index
In general
The Secretary shall, on the basis of the data submitted under subsection (a), calculate a college affordability index for each institution of higher education submitting such data and shall make the index available in accordance with subsection (b) as soon as operationally possible on the Department’s college opportunity online Web site.
Calculation of index
The college affordability index shall be equal to—
the percentage increase in the tuition and fees charged for a first-time, full-time, full-year undergraduate student between the first of the 3 most recent preceding academic years and the last of those 3 academic years; divided by
the percentage increase in the Consumer Price Index—All Urban Consumers (Current Series) from July of the first of those 3 academic years to July of the last of those 3 academic years.
Outcomes and actions
Response from institution
Effective on June 30, 2008, an institution that has a college affordability index that exceeds 2.0 for any 3-year interval ending on or after that date shall provide a report to the Secretary, in such a form, at such time, and containing such information as the Secretary may require. Such report shall include—
an explanation of the factors contributing to the increase in the institution’s costs and in the tuition and fees charged to students;
a management plan stating the specific steps the institution is and will be taking to reduce its college affordability index;
an action plan, including a schedule, by which the institution will reduce increases in or stabilize, such costs and tuition and fees; and
if determinations of tuition and fee increases are not within the exclusive control of the institution, a description of the agency or instrumentality of State government or other entity that participates in such determinations and the authority exercised by such agency, instrumentality, or entity.
Information to the public
Upon receipt of the institution’s report and management plan under paragraph (1), the Secretary shall make the institution’s report required under paragraph (1) available to the public in accordance with subsection (b).
Consequences for 2-year continuation of failure
If the Secretary determines that the institution has failed to comply with the management plan and action plan submitted by the institution under this subsection following the next 2 academic years that begin after the submission of such plans, and has failed to reduce the college affordability index below 2.0 for such 2 academic years, the Secretary—
shall make available to the public a detailed report provided by the institution on all costs and expenditures, and on all tuition and fees charged to students, for such 2 academic years;
shall place the institution on an affordability alert status and shall make the information regarding the institution’s failure available in accordance with subsection (b);
shall notify the institution’s accrediting agency of the institution’s failure; and
may require the institution to submit to a review and audit by the Inspector General of the Department of Education to determine the cause of the institution’s failure.
Information to State agencies
Exemptions
Relative price exemption
The Secretary shall, for any 3-year interval for which college affordability indexes are computed under paragraph (1), determine and publish the dollar amount that, for each class of institution described in subparagraph (C) represents the maximum tuition and fees charged for a full-time undergraduate student in the least costly quartile of institutions within each such class during the last year of such 3-year interval. An institution that has a college affordability index computed under paragraph (1) that exceeds 2.0 for any such 3-year interval, but that, on average during such 3-year interval, charges less than such maximum tuition and fees shall not be subject to the actions required by subparagraph (B) or (C) of paragraph (1), or any action under paragraph (3), unless such institution, for a subsequent 3-year interval, charges more than such maximum tuition and fees.
Dollar increase exemption
An institution that has a college affordability index computed under paragraph (1) that exceeds 2.0 for any 3-year interval, but that exceeds such 2.0 by a dollar amount that is less than $500, shall not be subject to the actions required by subparagraph (B) or (C) of paragraph (1), or any action under paragraph (3), unless such institution has a college affordability index for a subsequent 3-year interval that exceeds 2.0 by more than such dollar amount.
Classes of institutions
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 this section 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 and price of higher education under this section and pursuant to the program participation agreement entered into under section 487.
GAO study and report
GAO study
The Comptroller General shall conduct a study of the policies and procedures implemented by institutions in increasing the affordability of postsecondary education. Such study shall include information with respect to—
a list of those institutions that—
have reduced their college affordability indexes; or
are, as determined under subsection (d)(5)(A), within the least costly quartile of institutions within each class described in subsection (d)(5)(C);
policies implemented to stem the increase in tuition and fees and institutional costs;
the extent to which room and board costs and prices changed;
the extent to which other services were altered to affect tuition and fees;
the extent to which the institution’s policies affected student body demographics and time to completion;
what, if any, operational factors played a role in reducing tuition and fees;
the extent to which academic quality was affected, and how;
the extent to which policies and practices reducing costs and prices may be replicated from one institution to another; and
other information as necessary to determine best practices in increasing the affordability of postsecondary education.
Interim and final reports
The Comptroller General shall submit an interim and a final report regarding the findings of the study required by paragraph (1) to the appropriate authorizing committees of Congress. The interim report shall be submitted not later than July 31, 2010, and the final report shall be submitted not later than July 31, 2012.
Student aid recipient survey
Survey required
The Secretary shall conduct a survey of student aid recipients under title IV on a regular cycle and State-by-State basis, but not less than once every 4 years—
to identify the population of students receiving Federal student aid;
to describe the income distribution and other socioeconomic characteristics of federally aided students;
to describe the combinations of aid from State, Federal, and private sources received by students from all income groups;
to describe the debt burden of educational loan recipients and their capacity to repay their education debts, and the impact of such debt burden on career choices;
to describe the role played by the price of postsecondary education in the determination by students of what institution to attend; and
to describe how the increased costs of textbooks and other instructional materials affects the costs of postsecondary education to students.
Survey design
The survey shall be representative of full-time and part-time, undergraduate, graduate, and professional and current and former students in all types of institutions, and designed and administered in consultation with the Congress and the postsecondary education community.
Dissemination
The Secretary shall disseminate the information resulting from the survey in both printed and electronic form.
Regulations
The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.
.
Performance-based organization
Section 141 (20 U.S.C. 1018) is amended—
in subsection (a)(2)(B)—
by inserting unit
after to reduce the
; and
by inserting and, to the extent practicable, the total costs of administering those programs
after those programs
;
in subsection (c)—
in paragraph (1)(A), by striking Each year
and inserting Each fiscal year
;
in paragraph (1)(B), by inserting secondary markets, guaranty agencies,
after lenders,
; and
in paragraph (2)(B), by striking Chief Financial Officer Act of 1990 and
and inserting Chief Financial Officers Act of 1990,
and by inserting before the period at the end the following: , and other relevant statutes
; and
in subsection (f)(3)(A), by striking paragraph (1)(A)
and inserting paragraph (1)
.
Teacher Preparation
Sense of the House of Representatives
It is the sense of the House of Representatives that title II of the Higher Education Act of 1965 should be amended as provided in H.R. 2211 as passed by the House of Representatives on July 9, 2003.
Institutional aid
Title III grants for American Indian Tribally Controlled Colleges and Universities
Eligible institutions
Subsection (b) of section 316 (20 U.S.C. 1059c(b)) is amended to read as follows:
Definitions
Eligible institutions
For purposes of this section, Tribal Colleges and Universities are the following:
any of the following institutions that qualify for funding under the Tribally Controlled College or University Assistance Act of 1978 or is listed in Equity in Educational Land Grant Status Act of 1994 (7 U.S.C. 301 note): Bay Mills Community College; Blackfeet Community College; Cankdeska Cikana Community College; Chief Dull Knife College; College of Menominee Nation; Crownpoint Institute of Technology; Diné College; D–Q University; Fond du Lac Tribal and Community College; Fort Belknap College; Fort Berthold Community College; Fort Peck Community College; Haskell Indian Nations University; Institute of American Indian and Alaska Native Culture and Arts Development; Lac Courte Oreilles Ojibwa Community College; Leech Lake Tribal College; Little Big Horn College; Little Priest Tribal College; Nebraska Indian Community College; Northwest Indian College; Oglala Lakota College; Saginaw Chippewa Tribal College; Salish Kootenai College; Si Tanka University—Eagle Butte Campus; Sinte Gleska University; Sisseton Wahpeton Community College; Sitting Bull College; Southwestern Indian Polytechnic Institute; Stone Child College; Tohono O’Odham Community College; Turtle Mountain Community College; United Tribes Technical College; and White Earth Tribal and Community College; and
any other institution that meets the definition of tribally controlled college or university in section 2 of the Tribally Controlled College or University Assistance Act of 1978, and meets all other requirements of this section.
Indian
The term Indian has the meaning given the term in section 2 of the Tribally Controlled College or University Assistance Act of 1978.
.
Distance learning
Subsection (c)(2) of such section is amended—
by amending subparagraph (B) to read as follows:
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;
;
by striking and
at the end of subparagraph (K);
by redesignating subparagraph (L) as subparagraph (M); and
by inserting after subparagraph (K) the following new subparagraph:
developing or improving facilities for Internet use or other distance learning academic instruction capabilities; and
.
Application and allotment
Subsection (d) of such section is amended to read as follows:
Application and allotment
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).
Application
Any Tribal College or University desiring to receive assistance under this section shall submit an application to the Secretary at such time, and in such manner, as the Secretary may reasonably require.
Allotments to institutions
Allotment: Pell Grant Basis
From the amount appropriated to carry out this section for any fiscal year, the Secretary shall allot to each eligible institution a sum which bears the same ratio to one-half that amount as the number of Pell Grant recipients in attendance at such institution at the end of the award year preceding the beginning of that fiscal year bears to the total number of Pell Grant recipients at all eligible institutions.
Allotment: Degree and Certificate Basis
From the amount appropriated to carry out this section for any fiscal year, the Secretary shall allot to each eligible institution a sum which bears the same ratio to one-half that amount as the number of degrees or certificates awarded by such institution during the preceding academic year bears to the total number of degrees or certificates at all eligible institutions.
Minimum grant
Notwithstanding subparagraphs (A) and (B), the amount allotted to each institution under this section shall not be less than $400,000.
Special rules
Concurrent funding
For the purposes of this part, no Tribal College or University that is eligible for and receives funds under this section shall concurrently receive funds under other provisions of this part or part B.
Exemption
Section 313(d) shall not apply to institutions that are eligible to receive funds under this section.
.
Alaska Native and Native Hawaiian-serving institutions
Distance learning
Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended—
by amending subparagraph (B) to read as follows:
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;
;
by striking and
at the end of subparagraph (G);
by striking the period at the end of subparagraph (H) and inserting ; and
; and
by inserting after subparagraph (H) the following new subparagraph:
development or improvement of facilities for Internet use or other distance learning academic instruction capabilities.
.
Endowment funds
Section 317(c) is further amended by adding at the end the following new paragraph:
Endowment funds
In General
An Alaska Native or Native Hawaiian-serving 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.
Matching Requirement
In order to be eligible to use grant funds in accordance with subparagraph (A), the institution shall provide to the endowment fund from non-Federal funds an amount equal to the Federal funds used in accordance with subparagraph (A), for the establishment or increase of the endowment fund.
Applicability of other provisions
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).
.
Application process
Section 317(d) is amended—
by adding at the end of paragraph (1) the following new sentences: Each Alaska Native-serving institution and Native Hawaiian-serving institution shall develop a 5-year plan for improving the assistance provided to Alaska Native or Native Hawaiian students. Such plan shall not be subject to approval by the Secretary.
; and
in paragraph (2)—
by redesignating subparagraph (B) as subparagraph (C); and
by striking subparagraph (A) and inserting the following:
an assurance that the institution has developed a 5-year plan for serving Alaska Native or Native Hawaiian students;
a list of activities and other information that are consistent with the institution's 5-year plan; and
.
Grants to part B institutions
Use of funds
Facilities and equipment
Undergraduate institutions
Paragraph (2) of section 323(a) (20 U.S.C. 1062(a)) is amended to read as follows:
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.
.
Graduate and professional schools
Paragraph (2) of section 326(c) is amended to read as follows:
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;
.
Outreach and collaboration
Paragraph (11) of section 323(a) is amended to read as follows:
Establishing community outreach programs and collaborative partnerships between part B institutions and local elementary or secondary schools. Such partnerships may include mentoring, tutoring, or other instructional opportunities that will boost student academic achievement and assist elementary and secondary school students in developing the academic skills and the interest to pursue postsecondary education.
.
Technical assistance
Section 323 (20 U.S.C. 1062) is amended—
by redesignating subsection (c) as subsection (d); and
by inserting after subsection (b) the following new subsection:
Technical Assistance
In general
An institution may not use more than 2 percent of the grant funds provided under this part to secure technical assistance services.
Technical Assistance Services
Technical assistance services may include assistance with enrollment management, financial management, and strategic planning.
Report
The institution shall report to the Secretary on an annual basis, in such form as the Secretary requires, on the use of funds under this subsection.
.
Distance learning
Section 323(a)(2) (20 U.S.C. 1062(a)(2)) is amended by inserting development or improvement of facilities for Internet use or other distance learning academic instruction capabilities and
after including
.
Minimum grants
Section 324(d)(1) (20 U.S.C. 1063(d)(1)) is amended by inserting before the period at the end the following: , except that, if the amount appropriated to carry out this part for any fiscal year exceeds the amount required to provide to each institution an amount equal to the total amount received by such institution under subsections (a), (b), and (c) for the preceding fiscal year, then the amount of such excess appropriation shall first be applied to increase the minimum allotment under this subsection to $750,000
.
Eligible graduate or professional schools
General authority
Section 326(a)(1) (20 U.S.C. 1063b(a)(1)) is amended—
by inserting (A)
after subsection (e) that
;
by inserting before the period at the end the following: , (B) 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, and (C) according to such an agency or association, is in good standing
.
Eligible institutions
Section 326(e)(1) (20 U.S.C. 1063b(e)(1)) is amended—
by striking and
at the end of subparagraph (Q);
by striking the period at the end of subparagraph (R) and inserting a semicolon; and
by adding at the end the following new subparagraphs:
Alabama State University qualified graduate program;
Prairie View A&M University qualified graduate program; and
Coppin State University qualified graduate program.
.
Conforming amendment
Section 326(e)(3) (20 U.S.C. 1063b(e)(3)) is amended—
by striking 1998
and inserting 2004
; and
by striking (Q) and (R)
and inserting (S), (T), and (U)
.
Professional or graduate institutions
Section 326(f) (20 U.S.C. 1063b(f)) is amended—
in paragraph (1)—
by striking $26,600,000
and inserting $55,500,000
; and
by striking (P)
and inserting (R)
;
in paragraph (2)—
by striking $26,600,000 but not in excess of $28,600,000
and inserting $55,500,000, but not in excess of $58,500,000
; and
by striking subparagraphs (Q) and (R)
and inserting subparagraphs (S), (T), and (U)
; and
in paragraph (3)—
by striking $28,600,000
and inserting $58,500,000
; and
by striking (R)
and inserting (U)
.
Hold harmless
Section 326(g) (20 U.S.C. 1063b(g)) is amended by striking 1998
and inserting 2004
.
Technical amendments
Amendments
Title III is further amended—
in section 311(c) (20 U.S.C. 1057(c))—
by redesignating paragraphs (7) through (12) as paragraphs (8) through (13), respectively; and
by inserting after paragraph (6) the following:
Education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents.
;
in section 312(b)(1)(F) (20 U.S.C. 1058(b)(1)(F)), by inserting which is
before located
;
in section 312(b)(1) (20 U.S.C. 1058(b)(1)), by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively, and by inserting after subparagraph (D) the following new subparagraph:
which provides a program that is not less than a 2-year educational program that is acceptable for full credit toward a bachelor’s degree;
;
in section 316(b)(3) (20 U.S.C. 1059c(b)(3)), by striking give
and inserting given
;
in section 316(c)(2) (20 U.S.C. 1059c(c)(2))—
by redesignating subparagraphs (G) through (M) (as redesignated by section 301(b)(2) of this Act) as subparagraphs (H) through (N), respectively;
by inserting after subparagraph (F) the following:
education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;
; and
in subparagraph (N), as redesignated by subparagraph (A), by striking subparagraphs (A) through (K)
and inserting subparagraphs (A) through (M)
;
in section 317(c)(2) (20 U.S.C. 1059d(c)(2))—
in subparagraph (G), by striking and
after the semicolon;
in subparagraph (H), by striking the period at the end and inserting ; and
; and
by adding at the end the following:
education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents.
;
in section 323(a) (20 U.S.C. 1062(a))—
by striking section 360(a)(2)
and inserting 399(a)(2)
;
by redesignating paragraphs (7) through (12) as paragraphs (8) through (13), respectively; and
by inserting after paragraph (6) the following:
Education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents.
;
in section 324(d)(2) (20 U.S.C. 1063(d)(2)), by striking section 360(a)(2)(A)
and inserting section 399(a)(2)(A)
;
in section 326(e)(1) (20 U.S.C. 1063b(e)(1)), in the matter preceding subparagraph (A), by inserting a colon after the following
;
in section 327(b) (20 U.S.C. 1063c(b)), by striking initial
;
in section 342(5)(C) (20 U.S.C. 1066a(5)(C))—
by inserting a comma after equipment
the first place it appears; and
by striking technology,,
and inserting technology,
;
in section 343(e) (20 U.S.C. 1066b(e)), by inserting after the subsection designation the following: Sale of Qualified Bonds.—
;
in section 351(a) (20 U.S.C. 1067a(a)), by striking of 1979
; and
in section 396 (20 U.S.C. 1068e), by striking section 360
and inserting section 399
.
Repeal
Section 1024 (20 U.S.C. 1135b–3), as transferred by section 301(a)(5) of the Higher Education Amendments of 1998 (Public Law 105–244; 112 Stat. 1636), is repealed.
Title III authorizations
Section 399(a) (20 U.S.C. 1068h(a)) is amended—
by striking 1999
each place it appears and inserting 2005
;
by striking 4 succeeding fiscal years
each place it appears and inserting 5 succeeding fiscal years
;
in paragraph (1)—
by striking $10,000,000
in subparagraph (B) and inserting $23,800,000
; and
by striking $5,000,000
in subparagraph (C) and inserting $11,000,000
;
in paragraph (2)—
by striking $135,000,000
in subparagraph (A) and inserting $241,000,000
; and
by striking $35,000,000
in subparagraph (B) and inserting $59,000,000
; and
in paragraph (4), by striking $110,000
and inserting $212,000
.
Student assistance
Grants to students
Pell Grants
Extension of authority
Section 401(a) (20 U.S.C. 1070a(a)) is amended by striking 2004
and inserting 2011
.
Direct payment
Section 401(a) (20 U.S.C. 1070a(a)) is further amended—
by striking paragraph (2); and
by redesignating paragraph (3) as paragraph (2).
Maximum grant extension
Paragraph (2)(A) of section 401(b) (20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows:
The amount of the Federal Pell Grant for a student eligible under this part shall be $5,800 for academic years 2005–2006 through 2010–2011, less an amount equal to the amount determined to be the expected family contribution with respect to that student for that year.
.
Tuition sensitivity
Section 401(b) is further amended—
by striking paragraph (3); and
by redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively.
Multiple grants
Paragraph (5) of section 401(b) (as redesignated by subsection (d)(2)) is amended to read as follows:
Year-round Pell grants
In general
The Secretary shall, for students enrolled full time in a baccalaureate degree program of study at an eligible institution, award such students two Pell grants during a single award year to permit such students to accelerate progress toward their degree objectives by enrolling in academic programs for 12 months rather than 9 months.
Limitation
The Secretary shall limit the awarding of additional Pell grants under this paragraph in a single award year to students attending baccalaureate degree granting institutions that have a graduation rate as reported by the Integrated Postsecondary Education Data System for the 4 preceding academic years of at least 30 percent.
Evaluation
The Secretary shall conduct an evaluation of the program under this paragraph and submit to the Congress an evaluation report no later than October 1, 2010.
Regulations required
The Secretary shall promulgate regulations implementing this paragraph.
.
Eligibility period
Section 401(c)(2) (20 U.S.C. 1070a(c)(2)) is amended by inserting , for not more than one academic year,
after which are determined by the institution
in the first sentence.
Pell Grants Plus: achievement grants for State scholars program
Amendment
Subpart 1 of part A of title IV is amended by inserting after section 401 (20 U.S.C. 1070a) the following new section:
Pell Grants Plus: achievement grants for State scholars
Grants Authorized
From sums appropriated to carry out section 401, the Secretary shall establish a program to award Pell Grants Plus to students who—
have successfully completed a rigorous high school program of study established by a State or local educational agency in consultation with a State coalition assisted by the Center for State Scholars;
are enrolled full-time in the first academic year of undergraduate education, and have not been previously enrolled in a program of undergraduate education; and
are eligible to receive Federal Pell Grants for the year in which the grant is awarded.
Amount of grants
In general
Except as provided in paragraph (2), the amount of the grant awarded under this section shall be $1,000.
Assistance not to exceed cost of attendance
A grant awarded under this section to any student, in combination with the Federal Pell Grant assistance and other student financial assistance available to such student, may not exceed the student’s cost of attendance.
Selection of recipients
Procedures established by regulation
The Secretary shall establish by regulation procedures for the determination of eligibility of students for the grants awarded under this section. Such procedures shall include measures to ensure that eligibility is determined in a timely and accurate manner consistent with the requirements of section 482 and the submission of the financial aid form required by section 483.
Required information
Each eligible student desiring an award under this section shall submit at such time and in such manner such information as the Secretary may reasonably require.
Continuation of grant requirements
In order for a student to continue to be eligible to receive an award under this section for the second year of undergraduate education, the eligible student must—
maintain eligibility to receive a Federal Pell Grant for that year;
obtain a grade point average of at least 3.0 (or the equivalent as determined under regulations prescribed by the Secretary) for the first year of undergraduate education; and
be enrolled full-time and fulfill the requirements for satisfactory progress described in section 484(c).
Evaluation, and reports
The Secretary shall monitor the progress, retention, and completion rates of the students to whom awards are provided under this section. In doing so, the Secretary shall evaluate the impact of the Pell Grants Plus Program and report, not less than biennially, to the authorizing committees of the House of Representatives and the Senate.
.
Conforming amendment
Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 1070a–31 through 1070a–35) is repealed.
TRIO programs
Duration of grants
Amendment
Section 402A(b)(2) (20 U.S.C. 1070a–11(b)(2)) is amended to read as follows:
Duration
Grants or contracts awarded under this chapter shall be awarded for a period of 5 years, except that—
grants under section 402G shall be awarded for a period of 2 years; and
grants under section 402H shall be awarded for a period determined by the Secretary.
.
Transition to synchronous grant periods
Notwithstanding section 402A(b)(2) of the Higher Education Act of 1965 (as in effect both prior to and after the amendment made by paragraph (1) of this subsection), the Secretary of Education may continue an award made before the date of enactment of this Act under section 402B, 402C, 402D, 402E, or 402F of such Act as necessary to permit all the awards made under such a section to expire at the end of the same fiscal year, and thereafter to expire at the end of 5 years as provided in the amendment made by paragraph (1) of this subsection.
Minimum grants
Section 402A(b)(3) (20 U.S.C. 1070a–11(b)(3)) is amended to read as follows:
Minimum grants
Unless the institution or agency requests a smaller amount, individual grants for programs authorized under this chapter shall be no less than $200,000, except that individual grants for programs authorized under section 402G shall be no less than $170,000.
.
Prior experience; novice applicants
Section 402A(c)(2) (20 U.S.C. 1070a–11(c)(2)) is amended—
by striking In making grants
and inserting (A) Subject to subparagraph (B), in making grants
; and
by adding at the end the following new subparagraph:
From the amount available under subsection (f) for a program under this chapter (other than a program under section 402G or 402H) for any fiscal year in which the Secretary conducts a competition for the award of grants or contracts under such program, the Secretary shall reserve 10 percent of such available amount for purposes of funding applications from novice applicants. If the Secretary determines that there are an insufficient number of qualified novice applicants to utilize the amount so reserved, the Secretary shall restore the unutilized remainder of the amount reserved for use by applicants qualifying under subparagraph (A).
.
Application status
Section 402A(c) (20 U.S.C. 1070a–11(c)) is amended by striking paragraph (7).
Documentation of status
Section 402A(e) (20 U.S.C. 1070a–11(e)) is amended by striking (g)(2)
each place it appears in paragraphs (1) and (2) and inserting (g)(4)
.
Authorization of appropriations
Section 402A(f) (20 U.S.C. 1070a–11(f)) is amended by striking $700,000,000 for fiscal year 1999, and such sums as may be necessary for each of the 4 succeeding fiscal years
and inserting $835,000,000 for fiscal year 2005 and such sums as may be necessary for each of the 5 succeeding fiscal years
.
Definition
Section 402A(g) (20 U.S.C. 1070a–11(g)) is amended—
in paragraph (3), by striking by reason of such individual’s age
;
by redesignating paragraphs (1) through (4) as paragraphs (3) through (6), respectively; and
by inserting before paragraph (3), as redesignated, the following:
Different campus
The term different campus means an institutional site that—
is geographically apart from the main campus of the institution;
is permanent in nature; and
offers courses in educational programs leading to a degree, certificate, or other recognized educational credential.
Different population
The term different population means a group of individuals, with respect to whom an entity seeks to serve through an application for funding under this chapter, that—
is separate and distinct from any other population that the entity seeks to serve through an application for funding under this chapter; or
while sharing some of the same needs as another population that the entity seeks to serve through an application for funding under this chapter, has distinct needs for specialized services.
.
Education and counseling services
Chapter 1 of subpart 2 of part A of title IV is further amended—
in section 402B(b) (20 U.S.C. 1070a–12(b))—
by redesignating paragraphs (3) through (10) as paragraphs (4) through (11), respectively;
by inserting after paragraph (2) the following:
education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;
; and
in paragraph (11), as redesignated by subparagraph (A), by striking paragraphs (1) through (9)
and inserting paragraphs (1) through (10)
.
in section 402C (20 U.S.C. 1070a–13)—
in subsection (b)—
by redesignating paragraphs (2) through (12) as paragraphs (3) through (13), respectively;
by inserting after paragraph (1) the following:
education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;
; and
in paragraph (13), as redesignated by clause (i), by striking paragraphs (1) through (11)
and inserting paragraphs (1) through (12)
; and
in subsection (e), by striking subsection (b)(10)
and inserting subsection (b)(11)
;
in section 402D(b) (20 U.S.C. 1070a–14(b))—
by redesignating paragraphs (2) through (10) as paragraphs (3) through (11), respectively;
by inserting after paragraph (1) the following:
education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;
; and
in paragraph (11), as redesignated by subparagraph (A), by striking paragraphs (1) through (9)
and inserting paragraphs (1) through (10)
;
in section 402E(b) (20 U.S.C. 1070a–15(b))—
by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively; and
by inserting after paragraph (6) the following:
education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;
;
in section 402F(b) (20 U.S.C. 1070a–16(b)) —
by redesignating paragraphs (4) through (10) as paragraphs (5) through (11), respectively;
by inserting after paragraph (3) the following:
education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;
; and
in paragraph (11), as redesignated by subparagraph (A), by striking paragraphs (1) through (9)
and inserting paragraphs (1) through (10)
.
Maximum stipends
Section 402C(e) (20 U.S.C. 1070a–13(e)) is amended—
by striking $60
and inserting $100
; and
by striking $40
and inserting $60
.
Student support services
Section 402D(d)(6) (20 U.S.C. 1070a–14(d)(6)) is amended—
by striking and
at the end of subparagraph (A);
by striking the period at the end of subparagraph (B) and inserting ; and
; and
by inserting after subparagraph (B) the following new subparagraph:
working with other entities that serve low-income working adults to increase access to and successful progress in postsecondary education by low-income working adults seeking their first postsecondary degree or certificate.
.
Postbaccalaureate achievement maximum stipends
Section 402E(e)(1) (20 U.S.C. 1070a–15(e)(1)) is amended by striking $2,800
and inserting $5,000
.
Educational opportunity centers: application approval
Section 402F(c) (20 U.S.C. 1070a–16(c)) is amended—
by striking and
at the end of paragraph (2);
by striking the period at the end of paragraph (3) and inserting ; and
; and
by inserting after paragraph (3) the following new paragraph:
consider the extent to which the proposed project would provide services to low-income working adults in the region to be served, in order to increase access to postsecondary education by low-income working adults.
.
GEARUP
Duration of awards
Section 404A(b) (20 U.S.C. 1070a–21(b)) is amended—
in paragraph (2)(B), by striking Higher Education Amendments of 1998
and inserting &short-title1;
; and
by adding at the end thereof the following new paragraph:
Duration
An award made by the Secretary under this chapter to an eligible entity described in paragraph (1) or (2) of subsection (c) shall be for the period of 6 years.
.
Continuing eligibility
Section 404A (20 U.S.C. 1070a–21) is amended by adding at the end the following new subsection:
Continuing eligibility
An eligible entity shall not cease to be an eligible entity upon the expiration of any grant under this chapter (including a continuation award).
.
Continuity of service
Cohort approach
Section 404B(g)(1)(B) (20 U.S.C. 1070a–22(g)(1)(B)) is amended by inserting and provide the option of continued services through the student’s first year of attendance at an eligible institution of higher education
after grade level
.
Early intervention
Section 404D (20 U.S.C. 1070a–24) is amended—
in subsection (b)(2)(A), by inserting and students in the first year of attendance at an eligible institution of higher education
after grade 12
; and
in subsection (c), by inserting and may consider students in their first year of attendance at an eligible institution who is eligible
after grade 12
.
Coordination
Section 404C(a)(2) (20 U.S.C. 1070a–23(a)(2)) is amended—
by striking and
at the end of subparagraph (A);
by redesignating subparagraph (B) as subparagraph (C); and
by inserting after subparagraph (A) the following new subparagraph:
describe activities for coordinating, complementing, and enhancing services under this chapter provided by other eligible entities in the State; and
.
Education and counseling services
Section 404D(b)(2)(A)(ii) (20 U.S.C. 1070a–24(b)(2)(A)(ii)) is amended by striking and academic counseling
and inserting academic counseling, and financial literacy and economic literacy education or counseling
.
Reauthorization
Section 404H (20 U.S.C. 1070a–28) is amended by striking $200,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years
and inserting $300,000,000 for fiscal year 2005 and such sums as may be necessary for each of the 5 succeeding fiscal years
.
Federal Supplemental Educational Opportunity Grants
Authorization of appropriations
Section 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended by striking $675,000,000 for fiscal year 1999 and such sums as may be necessary for the 4 succeeding fiscal years
and inserting $770,500,000 for fiscal year 2005 and such sums as may be necessary for the 5 succeeding fiscal years
.
Phaseout of allocation based on previous allocations
Amendment
Subsection (a) of section 413D (20 U.S.C. 1070b–3(a)) is amended to read as follows:
Allocation based on previous allocation
Base guarantee
From the amount appropriated pursuant to section 413A(b) for each fiscal year after fiscal year 2006, the Secretary shall, subject to paragraph (2), first allocate to each eligible institution an amount equal to the following percentage of the amount such institution received under subsection (a) of this section for fiscal year 2006 (as such subsection was in effect with respect to allocations for such fiscal year):
80 percent for fiscal years 2007 and 2008;
60 percent for fiscal years 2009 and 2010;
40 percent for fiscal years 2011 and 2012;
20 percent for fiscal years 2013 and 2014; and
0 percent for fiscal year 2015 and any succeeding fiscal year.
Ratable reductions for insufficient appropriations
Reduction of base guarantee
If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under this subsection, then the amount of the allocation to each such institution shall be ratably reduced.
Additional appropriations allocation
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 this subsection).
Additional allocations for certain institutions
—
Allocations permitted
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 subpart exceeds $700,000,000 among eligible institutions described in subparagraph (B).
Eligible institutions
For purposes of subparagraph (A)—
an eligible institution that is a 4-year institution may receive an allocation under subparagraph (A) if more than 50 percent of the students who are degree-seeking Pell Grant recipients attending such institution graduate within 4 calendar years of the first day of enrollment; and
an eligible institution that is a 2-year institution may receive an allocation under subparagraph (A) if more than 50 percent of the students who are degree-seeking Pell Grant recipients attending such institution graduate within 2 calendar years of the first day of enrollment.
.
Effective date
The amendment made by paragraph (1) shall apply with respect to any amounts appropriated under section 413A(b) of the Higher Education Act of 1965 (20 U.S.C. 1070b(b)) for fiscal year 2007 or any succeeding fiscal year.
Books and supplies
Section 413D(c)(3)(D) (20 U.S.C. 1070–3(c)(3)(D)) is amended by striking $450
and inserting $600
.
LEAP
Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
.
HEP/CAMP program
Section 418A (20 U.S.C. 1070d–2) is amended—
in subsection (b)(1)(B)(i), by inserting , or whose spouse
after themselves
;
in subsection (b)(3)(B), by inserting , including preparation for college entrance exams,
after program
;
in subsection (b)(8), by inserting , including child care and transportation
after supportive services
;
by striking and
at the end of subsection (b)(7), by striking the period at the end of subsection (b)(8) and inserting ; and
, and by adding at the end of subsection (b) the following new paragraph:
follow-up activity and reporting requirements, except that not more than 2 percent of the funds provided under this section may be used for such purposes.
;
in subsection (c)(1)(A), by inserting , or whose spouse
after themselves
;
in subsection (c)(1)(B), by striking clause (i) and inserting the following:
personal, academic, career, and economic education or personal finance counseling as an ongoing part of the program;
;
in subsection (c)(2)(B), by inserting (including mentoring and guidance of such students)
after services
;
in subsection (c)(2), by striking and
at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ; and
, and by adding at the end of subsection (c)(2) the following new subparagraph:
for students in any program that does not award a bachelor’s degree, encouraging the transfer to, and persistence in, such a program, and monitoring the rate of such transfer, persistence, and completion.
; and
in subsection (h)—
in paragraph (1), by striking $15,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years
and inserting $24,000,000 for fiscal year 2005 and such sums as may be necessary for each of the 5 succeeding fiscal years
; and
in paragraph (2), by striking $5,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years
and inserting $16,000,000 for fiscal year 2005 and such sums as may be necessary for each of the 5 succeeding fiscal years
.
Byrd Scholarship
Section 419K (20 U.S.C. 1070d–41) is amended—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
.
Child care access
Section 419N(g) (20 U.S.C. 1070e(g)) is amended—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
.
Learning anytime anywhere partnerships
Repeal
Subpart 8 of part A of title IV (20 U.S.C. 1070f—1070f–6) is repealed.
Conforming amendment
Section 400(b) (20 U.S.C. 1070(b)) is amended by striking through 8
and inserting through 7
.
Technical amendments
Part A of title IV is further amended as follows:
Section 419C(b)(1) (20 U.S.C. 1070d–33(b)(1)) is amended by inserting and
after the semicolon at the end thereof.
Section 419D(d) (20 U.S.C. 1070d–34(d)) is amended by striking Public Law 95–1134
and inserting Public Law 95–134
.
Federal Family Education Loan Program
Reauthorization of Federal Family Education Loan Program
Authorization of appropriations
Section 421(b)(5) (20 U.S.C. 1071(b)(5)) is amended by striking administrative cost allowance
and inserting loan processing and issuance fee
.
Extension of authority
Federal insurance limitations
Section 424(a) (20 U.S.C. 1074(a)) is amended—
by striking 2004
and inserting 2011
; and
by striking 2008
and inserting 2015
.
Guaranteed loans
Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is amended—
by striking 2004
and inserting 2011
; and
by striking 2008
and inserting 2015
.
Consolidation loans
Section 428C(e) (20 U.S.C. 1078–3(e)) is amended by striking 2004
and inserting 2011
.
Loan limits
Federal insurance limits
Section 425(a)(1)(A) (20 U.S.C. 1075(a)(1)(A)) is amended—
in clause (i)(I), by striking $2,625
and inserting $3,500
; and
in clause (ii)(I), by striking $3,500
and inserting $4,500
.
Guarantee limits
Section 428(b)(1)(A) (20 U.S.C. 1078(b)(1)(A)) is amended—
in clause (i)(I), by striking $2,625
and inserting $3,500
; and
in clause (ii)(I), by striking $3,500
and inserting $4,500
.
Counting of consolidation loans against limits
Section 428C(a)(3)(B) (20 U.S.C. 1078–3(a)(3)(B)) is amended by adding at the end the following new clause:
Loans made under this section shall, to the extent used to discharge loans made under this title, be counted against the applicable limitations on aggregate indebtedness contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, and 464(a)(2)(B).
.
Effective date
The amendments made by this section shall apply with respect to any loan made, insured, or guaranteed under part B or part D of title IV of the Higher Education Act of 1965 for which the first disbursement of principal is made on or after July 1, 2006.
Interest rates and special allowances
FFEL interest rate
Section 427A (20 U.S.C. 1077a(k)) is amended—
in subsection (k)—
by striking , and before July 1, 2006
in the heading of such subsection; and
by striking , and before July 1, 2006,
each place it appears other than paragraph (4);
by striking subsection (l); and
by redesignating subsections (m) and (n) as subsections (l) and (m), respectively.
Direct loan interest rates
Section 455(b) (20 U.S.C. 1087e(b)) is amended—
in paragraph (6)—
by striking , and before July 1, 2006
in the heading of such paragraph; and
by striking , and before July 1, 2006,
each place it appears other than subparagraph (D);
by striking paragraph (7); and
by redesignating paragraphs (8) and (9) as paragraphs (7) and (8), respectively.
Consolidation loans
FFEL consolidation loans
Section 427A(k) (20 U.S.C. 1077a(k)) is further amended—
by redesignating paragraph (5) as paragraph (6); and
by inserting after paragraph (4) the following new paragraph:
Variable rate for consolidation loans
With respect to any consolidation loan under section 428C for which the application is received by an eligible lender on or after 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—
the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
2.3 percent,
.
Direct consolidation loans
Section 455(b)(6) (20 U.S.C. 1087e(b)(6)) is further amended—
by redesignating subparagraph (E) as subparagraph (F); and
by inserting after subparagraph (D) the following new subparagraph:
Variable rate for consolidation loans
With respect to any Federal Direct Consolidation loan for which the application is received on or after 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—
the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
2.3 percent,
.
Consolidation loan conforming amendment
Section 428C(c)(1)(A)(ii) (20 U.S.C. 1078–3(c)(1)(A)(ii)) is amended by striking section 427A(l)(3)
and inserting section 427A(k)(5)
.
Conforming amendments for special allowances
Amendment
Subparagraph (I) of section 438(b)(2) (20 U.S.C. 1087–1(b)(2)) is amended—
by striking clause (ii) and inserting the following:
In school and grace period
In the case of any loan for which the first disbursement is made on or after January 1, 2000, and for which the applicable interest rate is described in section 427A(k)(2), clause (i)(III) of this subparagraph shall be applied by substituting 1.74 percent
for 2.34 percent
.
;
in clause (iii)—
by striking or (l)(2)
; and
by striking , subject to clause (v) of this subparagraph
;
in clause (iv)—
by striking or (l)(3)
and inserting or (k)(5)
; and
by striking , subject to clause (vi) of this subparagraph
; and
by striking clauses (v), (vi), and (vii) and inserting the following:
Recapture of excess interest
Excess credited
With respect to a loan on which the applicable interest rate is determined under section 427A(k) and for which the first disbursement of principal is made on or after July 1, 2005, if the applicable interest rate for any 3-month period exceeds the special allowance rate applicable to such loan under this subparagraph for such period, then an adjustment shall be made by calculating the excess interest in the amount computed under subclause (II) of this clause, and by crediting the excess interest to the Government not less often than annually.
Calculation of excess
The amount of any adjustment of interest on a loan to be made under this subsection for any quarter shall be equal to—
the applicable interest rate minus the special allowance rate determined under this subparagraph; multiplied by
the average daily principal balance of the loan (not including unearned interest added to principal) during such calendar quarter; divided by
four.
.
Effective date
The amendments made by this subsection shall not apply with respect to any special allowance payment made under section 438 of the Higher Education Act of 1965 (20 U.S.C 1087–1) before July 1, 2005.
Special allowance for loans from the proceeds of tax exempt issues
Section 438(b)(2)(B) (20 U.S.C. 1087–1(b)(2)(B)) is amended—
in clause (i), by striking this division
and inserting this clause
;
in clause (ii), by striking division (i) of this subparagraph
and inserting clause (i) of this subparagraph
;
in clause (iv), by inserting or refunded after May 5, 2004,
after October 1, 1993,
; and
by adding at the end the following new clause:
Notwithstanding clauses (i) and (ii), the quarterly rate of the special allowance shall be the rate determined under subparagraph (A), (E), (F), (G), (H), or (I) of this paragraph, or paragraph (4), as the case may be, for a holder of loans that—
were made or purchased with funds—
obtained from the issuance of obligations the income from which is excluded from gross income under the Internal Revenue Code of 1986 and which obligations were originally issued before October 1, 1993; or
obtained from collections or default reimbursements on, or interests or other income pertaining to, eligible loans made or purchased with funds described in division (aa), or from income on the investment of such funds; and
were—
financed by such an obligation that has matured, or been retired or defeased;
refinanced after May 5, 2004, with funds obtained from a source other than funds described in subclause (I) of this clause; or
sold or transferred to any other holder.
.
Additional loan terms and conditions
Disbursement
Section 428(b)(1)(N) (20 U.S.C. 1078(b)(1)(N)(ii)) is amended—
by striking or
at the end of clause (i); and
by striking clause (ii) and inserting the following:
in the case of a student who is studying outside the United States in a program of study abroad that is approved for credit by the home institution at which such student is enrolled, are, at the request of the student, disbursed directly to the student by the means described in clause (i), unless such student requests that the check be endorsed, or the funds transfer authorized, pursuant to an authorized power-of-attorney; or
in the case of a student who is studying outside the United States in a program of study at an eligible foreign institution, are, at the request of the foreign institution, disbursed directly to the student by the means described in clause (i).
.
Repayment plans
FFEL Loans
Section 428(b)(9)(A) (20 U.S.C. 1078(b)(9)(A)) is amended—
by inserting before the semicolon at the end of clause (ii) the following: , and the Secretary may not restrict the proportions or ratios by which such payments may be graduated with the informed agreement of the borrower
;
by striking and
at the end of clause (iii);
by redesignating clause (iv) as clause (v); and
by inserting after clause (iii) the following new clause:
a delayed repayment plan under which the borrower makes scheduled payments for not more than 2 years that are annually not less than the amount of interest due or $300, whichever is greater, and then makes payments in accordance with clause (i), (ii), or (iii); and
.
Direct loans
Section 455(d)(1) (20 U.S.C. 1087e(d)(1)) is amended—
by redesignating subparagraph (D) as subparagraph (E); and
by striking subparagraphs (A), (B), and (C) and inserting the following:
a standard repayment plan, consistent with subsection (a)(1) of this section and with section 428(b)(9)(A)(i);
a graduated repayment plan, consistent with section 428(b)(9)(A)(ii);
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);
a delayed repayment plan under which the borrower makes scheduled payments for not more than 2 years that are annually not less than the amount of interest due or $300, whichever is greater, and then makes payments in accordance with subparagraph (A), (B), or (C); and
.
Origination fees
Amendments
Paragraph (2) of section 438(c) (20 U.S.C. 1087–1(c)) is amended—
by striking the designating and heading of such paragraph and inserting the following:
Amount of origination fees
In general
; and
by adding at the end the following new subparagraphs:
Subsequent reductions
Subparagraph (A) shall be applied to loans made under this part other than loans made under sections 428C and 439(o)—
by substituting 2.0 percent
for 3.0 percent
with respect to loans for which the first disbursement of principal is made on or after July 1, 2006, and before July 1, 2008;
by substituting 1.5 percent
for 3.0 percent
with respect to loans for which the first disbursement of principal is made on or after July 1, 2008, and before July 1, 2010; and
by substituting 1.0 percent
for 3.0 percent
with respect to loans for which the first disbursement of principal is made on or after July 1, 2010.
.
Conforming amendment to direct loan program
Subsection (c) of section 455 (20 U.S.C. 1087e(c)) is amended to read as follows:
Loan Fee
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.
Subsequent reductions
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, 2006, and before July 1, 2008;
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, 2008, and before July 1, 2010; and
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.
.
Consolidation loan changes
Amendments
Section 428C (20 U.S.C. 1078–3) is amended—
in subsection (a)(3), by striking subparagraph (C); and
in subsection (b)(1)—
by striking everything after under this section
the first place it appears in subparagraph (A) and inserting the following: and that, if all the borrower’s loans under this part are held by a single holder, the borrower has notified such holder that the borrower is seeking to obtain a consolidation loan under this section;
;
by striking (i) which
and all that follows through and (ii)
in subparagraph (C);
by striking and
at the end of subparagraph (E);
by redesignating subparagraph (F) as subparagraph (G); and
by inserting after subparagraph (E) the following new subparagraph:
that the lender of the consolidation loan shall, upon application for such loan, provide the borrower with a clear and conspicuous notice of at least the following information:
the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;
the effects of consolidation on a borrower’s underlying loan benefits, including loan forgiveness, cancellation, and deferment;
the ability for the borrower to prepay the loan, pay on a shorter schedule, and to change repayment plans, and that borrower benefit programs may vary among different loan holders;
the tax benefits for which borrowers may be eligible;
the consequences of default; and
that by making the application the applicant is not obligated to agree to take the consolidation loan; and
.
Effective date for single holder amendment
The amendment made by subsection (a)(2)(A) shall apply with respect to any loan made under section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) for which the application is received by an eligible lender on or after July 1, 2006.
Conforming amendments to direct loan program
Parallel terms, conditions, benefits, and amounts
Section 455(a)(1) (20 U.S.C. 1087e(a)(1)) is amended by inserting 428C,
after 428B,
.
Disclosure
Section 455(g) (20 U.S.C. 1087e(g)) is amended by adding at the end the following new sentences: The Secretary, upon application for such a loan, shall comply with the requirements applicable to a lender under 428C(b)(1)(F).
Unsubsidized Stafford loans
Amendment
Section 428H(d)(2)(C) (20 U.S.C. 1078–8(d)(2)(C)) is amended by striking $10,000
and inserting $12,000
.
Effective date
The amendment made by subsection (a) shall apply to loans for which the first disbursement of principal is made on or after July 1, 2006.
Teacher recruitment and retention
Increased qualified loan amounts
FFEL loans
Section 428J(c) (20 U.S.C. 1078–10(c)) is amended by adding at the end the following new paragraph:
Increased amounts for teachers in mathematics, science, or special education, and reading specialists
Service qualifying for increased amounts
Notwithstanding the amount specified in paragraph (1), the aggregate amount that the Secretary shall repay under this section shall not be more than $17,500 in the case of—
a secondary school teacher—
who meets the requirements of subsection (b), subject to subparagraph (D) of this paragraph; and
whose qualifying employment for purposes of such subsection has been teaching mathematics or science on a full-time basis;
an elementary or secondary school teacher—
who meets the requirements of subsection (b), subject to subparagraph (D) of this paragraph;
whose qualifying employment for purposes of such subsection has been 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 Act); and
who, as certified by the chief administrative officer of the public or nonprofit private elementary or secondary school in which the borrower is employed, 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 or secondary school curriculum that the borrower is teaching; and
an elementary or secondary school teacher who primarily teaches reading and—
who meets the requirements of subsection (b), subject to subparagraph (D) of this paragraph;
who has obtained a separate reading instruction credential from the State in which the teacher is employed; and
who is certified by the chief administrative officer of the public or nonprofit private elementary or secondary school in which the borrower is employed to teach reading—
as being proficient in teaching the essential components of reading instruction as defined in section 1208 of the Elementary and Secondary Education Act of 1965; and
as having such credential.
Accelerated payment
Notwithstanding the requirements of subsection (b)(1) and paragraph (1) of this subsection that 5 consecutive complete years of service have been completed prior to the receipt of loan forgiveness, in the case of service described in subparagraph (A) of this paragraph, the Secretary shall repay a portion of a borrower’s loan obligation outstanding at the commencement of the qualifying service under this subsection, not to exceed a total of $17,500, in the following increments:
up to $1,750, or 10 percent of such outstanding loan obligation, whichever is less, at the completion of the second year of such service;
up to $2,625, or 15 percent of such outstanding loan obligation, whichever is less, at the completion of the third year of such service;
up to $4,375, or 25 percent of such outstanding loan obligation, whichever is less, at the completion of the fourth year of such service; and
up to $8,750, or 50 percent of such outstanding loan obligation, whichever is less, at the completion of the fifth year of such service.
Promise to complete service required for accelerated payment
Any borrower who receives accelerated payment under this paragraph shall enter into an agreement to continue in the qualifying service for not less than 5 consecutive complete school years, or, upon a failure to complete such 5 years, to repay the United States, in accordance with regulations prescribed by the Secretary, the amount of the loans repaid by the Secretary under this paragraph, together with interest thereon and, to the extent required in such regulations, the reasonable costs of collection. Such regulations may provide for waiver by the Secretary of such repayment obligations upon proof of economic hardship as specified in such regulations.
Higher poverty enrollment required
In order to qualify for an increased repayment amount under this paragraph, section 465(a)(2)(A) shall, for purposes of subsection (b)(1)(A) of this section, be applied by substituting 40 percent of the total enrollment
for 30 percent of the total enrollment
.
.
Direct loans
Section 460(c) (20 U.S.C. 1087j(c)) is amended by adding at the end the following new paragraph:
Increased amounts for teachers in mathematics, science, or special education, and reading specialists
Service qualifying for increased amounts
Notwithstanding the amount specified in paragraph (1), the aggregate amount that the Secretary shall repay under this section shall not be more than $17,500 in the case of—
a secondary school teacher—
who meets the requirements of subsection (b)(1), subject to subparagraph (D) of this paragraph; and
whose qualifying employment for purposes of such subsection has been teaching mathematics or science on a full-time basis;
an elementary or secondary school teacher—
who meets the requirements of subsection (b)(1), subject to subparagraph (D) of this paragraph;
whose qualifying employment for purposes of such subsection has been 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 Act); and
who, as certified by the chief administrative officer of the public or nonprofit private elementary or secondary school in which the borrower is employed, 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 or secondary school curriculum that the borrower is teaching; and
an elementary or secondary school teacher who primarily teaches reading and—
who meets the requirements of subsection (b), subject to subparagraph (D) of this paragraph;
who has obtained a separate reading instruction credential from the State in which the teacher is employed; and
who is certified by the chief administrative officer of the public or nonprofit private elementary or secondary school in which the borrower is employed to teach reading—
as being proficient in teaching the essential components of reading instruction as defined in section 1208 of the Elementary and Secondary Education Act of 1965; and
as having such credential.
Accelerated payment
Notwithstanding the requirements of subsection (b)(1)(A) and paragraph (1) of this subsection that 5 consecutive complete years of service have been completed prior to the receipt of loan forgiveness, in the case of service described in subparagraph (A) of this paragraph, the Secretary shall repay a portion of a borrower’s loan obligation outstanding at the commencement of the qualifying service under this subsection, not to exceed a total of $17,500, in the following increments:
up to $1,750, or 10 percent of such outstanding loan obligation, whichever is less, at the completion of the second year of such service;
up to $2,625, or 15 percent of such outstanding loan obligation, whichever is less, at the completion of the third year of such service;
up to $4,375, or 25 percent of such outstanding loan obligation, whichever is less, at the completion of the fourth year of such service; and
up to $8,750, or 50 percent of such outstanding loan obligation, whichever is less, at the completion of the fifth year of such service.
Promise to complete service required for accelerated payment
Any borrower who receives accelerated payment under this paragraph shall enter into an agreement to continue in the qualifying service for not less than 5 consecutive complete school years, or, upon a failure to complete such 5 years, to repay the United States, in accordance with regulations prescribed by the Secretary, the amount of the loans repaid by the Secretary under this paragraph, together with interest thereon and, to the extent required in such regulations, the reasonable costs of collection. Such regulations may provide for waiver by the Secretary of such repayment obligations upon proof of economic hardship as specified in such regulations.
Higher poverty enrollment required
In order to qualify for an increased repayment amount under this paragraph, section 465(a)(2)(A) shall, for purposes of subsection (b)(1)(A)(i) of this section, be applied by substituting 40 percent of the total enrollment
for 30 percent of the total enrollment
.
.
Implementing highly qualified teacher requirements
Amendments
FFEL loans
Section 428J(b)(1) (20 U.S.C. 1078–10(b)(1)) is amended—
by inserting and
after the semicolon at the end of subparagraph (A); and
by striking subparagraphs (B) and (C) and inserting the following:
if employed as an elementary or secondary school teacher, is highly qualified as defined in section 9101(23) of the Elementary Secondary Education Act of 1965; and
.
Direct loans
Section 460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is amended—
by inserting and
after the semicolon at the end of clause (i); and
by striking clauses (ii) and (iii) and inserting the following:
if employed as an elementary or secondary school teacher, is highly qualified as defined in section 9101(23) of the Elementary Secondary Education Act of 1965; and
.
Transition rule
Rule
The amendments made by paragraph (1) of this subsection to sections 428J(b)(1) and 460(b)(1)(A) of the Higher Education Act of 1965 shall not be applied to disqualify any individual who, before the date of enactment of this Act, commenced service that met and continues to meet the requirements of such sections as in effect before such date of enactment.
Rule not applicable to increased qualified loan amounts
Subparagraph (A) of this paragraph shall not apply for purposes of obtaining increased qualified loan amounts under sections 428J(b)(3) and 460(b)(3) of the Higher Education Act of 1965 as added by subsection (a) of this section.
Information on benefits to rural school districts
The Secretary shall—
notify local educational agencies eligible to participate in the Small Rural Achievement Program authorized under subpart 1 of part B of title VI of the Elementary and Secondary Education Act of 1965 of the benefits available under the amendments made by this section; and
encourage such agencies to notify their teachers of such benefits.
Additional administrative provisions
Treatment of exempt claims
Insurance coverage
Section 428(b)(1)(G) (20 U.S.C. 1078(b)(1)(G)) is amended by inserting before the semicolon at the end the following: and 100 percent of the unpaid principal amount of exempt claims as defined in subsection (c)(1)(G)
.
Treatment
Section 428(c)(1) (20 U.S.C. 1078(c)(1)) is amended—
by redesignating subparagraph (G) as subparagraph (H), and moving such subparagraph 2 em spaces to the left; and
by inserting after subparagraph (F) the following new subparagraph:
Notwithstanding any other provisions of this section, in the case of exempt claims, the Secretary shall apply the provisions of—
the fourth sentence of subparagraph (A) by substituting 100 percent
for 95 percent
;
subparagraph (B)(i) by substituting 100 percent
for 85 percent
; and
subparagraph (B)(ii) by substituting 100 percent
for 75 percent
.
For purposes of clause (i) of this subparagraph, the term exempt claims means claims with respect to loans for which it is determined that the borrower (or the student on whose behalf a parent has borrowed), without the lender’s or the institution’s knowledge at the time the loan was made, provided false or erroneous information or took actions that caused the borrower or the student to be ineligible for all or a portion of the loan or for interest benefits thereon.
.
Documentation of forbearance agreements
Section 428(c) (20 U.S.C. 1078(c)) is further amended—
in paragraph (3)(A)(i), by striking in writing
; and
by adding at the end the following new paragraph:
Documentation of forbearance agreements
For the purposes of paragraph (3), the terms of forbearance agreed to by the parties shall be documented by confirming the agreement of the borrower by notice to the borrower from the lender, and by recording the terms in the borrower’s file.
.
Voluntary flexible agreements
Section 428A (20 U.S.C. 1078–1) is amended—
in subsection (a)(1)(B), by striking unless the Secretary
and all that follows through designated guarantor
;
by striking paragraph (2) of subsection (a);
in paragraph (4)(B) of such subsection, by striking and any waivers provided to other guaranty agencies under paragraph (2)
;
by redesignating paragraphs (3) and (4) of subsection (a) as paragraphs (2) and (3), respectively; and
by striking paragraph (3) of subsection (c) and inserting the following:
Notice to interested parties
Once the Secretary reaches a tentative agreement in principle under this section, the Secretary shall publish in the Federal Register a notice that invites interested parties to comment on the proposed agreement. The notice shall state how to obtain a copy of the tentative agreement in principle and shall give interested parties no less than 30 days to provide comments. The Secretary may consider such comments prior to providing the notices pursuant to paragraph (2).
.
Default reduction program
Section 428F(a)(1) (20 U.S.C. 1078–6(a)(1)) is amended—
in subparagraph (A), by striking consecutive payments for 12 months
and inserting 9 payments made within 20 days of the due date during 10 consecutive months
; and
by redesignating subparagraph (C) as subparagraph (D); and
by inserting after subparagraph (B) the following new subparagraph:
A guaranty agency may charge and retain collection costs in an amount not to exceed 18.5 percent of the outstanding principal and interest at the time of sale of a loan rehabilitated under subparagraph (A).
Notwithstanding clause (i), on and after July 1, 2006, a guaranty agency that rehabilitates a defaulted loan by making a consolidation loan to a borrower under section 428C(a)(3)(A)(ii)(III) may not charge and retain collection costs in an amount in excess of 10 percent of the outstanding principal and interest of the defaulted loans being consolidated.
For any year beginning on or after July 1, 2009, the total principal and interest of loans that a guaranty agency rehabilitates by making consolidation loans to borrowers under such section shall not exceed 45 percent of the total loans rehabilitated under subparagraph (A).
.
Financial and economic literacy
Default reduction program
Section 428F is further amended by adding at the end the following:
Financial and economic literacy
Where appropriate, each program described under subsection (b) shall include making available financial and economic education materials for the borrower.
.
Program assistance for borrowers
Section 432(k)(1) (20 U.S.C. 1082(k)(1)) is amended by striking and offering
and all that follows through the period and inserting , offering loan repayment matching provisions as part of employee benefit packages, and providing employees with financial and economic education and counseling.
.
Credit bureau organization agreements
Section 430A(a) (20 U.S.C. 1080a(a)) is amended by striking agreements with credit bureau organizations
and inserting an agreement with each national credit bureau organization (as described in section 603(p) of the Fair Credit Reporting Act)
.
Uniform administrative and claims procedure
Section 432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) is amended by inserting and anticipated graduation date
after status change
.
Default reduction management
Section 432 is further amended—
by striking subsection (n); and
by redesignating subsections (o) and (p) as subsections (n) and (o), respectively.
School as lender
Section 435(d)(2) (20 U.S.C. 1085(d)(2)) is amended by striking subparagraphs (C) through (F) and the material following subparagraph (F) and inserting the following:
shall not make a loan, other than a loan made under section 428 or 428H to a graduate or professional student, unless the borrower has previously received a loan from the school, and shall not make a loan to a borrower who is not enrolled at that institution;
shall not have a cohort default rate (as defined in section 435(m)) greater than 15 percent; and
shall use the proceeds from special allowance payments and interest payments from borrowers, and any proceeds from the sale or other disposition of loans, for need-based grant programs, except for reasonable reimbursement for direct administrative expenses.
.
Disability determinations
Section 437(a) (20 U.S.C. 1087(a)) is amended by adding at the end the following new sentence: In making such determination of permanent and total disability, the Secretary shall provide that a borrower who has been certified as permanently and totally disabled by the Department of Veterans Affairs or the Social Security Administration shall not be required to present further documentation for purposes of this title.
.
Treatment of falsely certified borrowers
Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is amended by inserting or parent’s eligibility
after such student’s eligibility
.
Perfection of security interests
Section 439(d) (20 U.S.C. 1087–2(d)) is amended—
by striking paragraph (3); and
by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
Additional technical amendments
Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is amended—
by striking and
at the end of subclause (II) of clause (i); and
by moving the margin of clause (iii) two ems to the left.
Section 428H(e) (20 U.S.C. 1078–8(e)) is amended—
by striking paragraph (6); and
by redesignating paragraph (7) as paragraph (6).
Section 428I(g) (20 U.S.C. 1078–9(g)) is amended by striking Code,
and inserting Code
.
Section 432(m)(1)(B) (20 U.S.C. 1082(m)(1)(B)) is amended—
in clause (i), by inserting and
after the semicolon at the end; and
in clause (ii), by striking ; and
and inserting a period.
Federal Work-Study Programs
Authorization of appropriations
Section 441(b) (42 U.S.C. 2751(b)) is amended—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
.
Community service
Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended by striking that are open and accessible to the community
.
Allocation of funds
Phaseout of allocation based on previous allocations
Subsection (a) of section 442(a) (42 U.S.C. 2752(a)) is amended to read as follows:
Allocation based on previous allocation
Base guarantee
From the amount appropriated pursuant to section 441(b) for each fiscal year after fiscal year 2006, the Secretary shall, subject to paragraph (2), first allocate to each eligible institution an amount equal to the following percentage of the amount such institution received under subsection (a) of this section for fiscal year 2006 (as such subsection was in effect with respect to allocations for such fiscal year):
80 percent for fiscal years 2007 and 2008;
60 percent for fiscal years 2009 and 2010;
40 percent for fiscal years 2011 and 2012;
20 percent for fiscal years 2013 and 2014; and
0 percent for fiscal year 2015 and any succeeding fiscal year.
Ratable reductions for insufficient appropriations
Reduction of base guarantee
If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under this subsection, then the amount of the allocation to each such institution shall be ratably reduced.
Additional appropriations allocation
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 this subsection).
Additional allocations for certain institutions
Allocations permitted
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).
Eligible institutions
For purposes of subparagraph (A)—
an eligible institution that is a 4-year institution may receive an allocation under subparagraph (A) if more than 50 percent of the students who are degree-seeking Pell Grant recipients attending such institution graduate within 4 calendar years of the first day of enrollment; and
an eligible institution that is a 2-year institution may receive an allocation under subparagraph (A) if more than 50 percent of the students who are degree-seeking Pell Grant recipients attending such institution graduate within 2 calendar years of the first day of enrollment.
.
Effective date
The amendment made by subsection (a) shall apply with respect to any amounts appropriated under section 441(b) of the Higher Education Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 2007 or any succeeding fiscal year.
Books and supplies
Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by striking $450
and inserting $600
.
Job location and development
Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended—
by striking 10 percent or $50,000
and inserting 15 percent or $75,000
; and
by inserting before the period at the end the following: , except that not less than one-third of such amount shall be specifically allocated to locate and develop community service jobs
.
Work colleges
Section 448 (42 U.S.C. 2756b) is amended—
by striking work-learning
each place it appears and inserting work-learning-service
;
by striking work-service
each place it appears and inserting work-learning-service
;
by amending subparagraph (C) of subsection (e)(1) to read as follows:
requires all resident 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 5 hours each week, or at least 80 hours during each period of enrollment, unless the student is engaged in an institutionally organized or approved study abroad or externship program; and
;
by amending paragraph (2) of subsection (e) to read as follows:
the term comprehensive student work-learning-service program—
means a student work-learning-service program that is an integral and stated part of the institution's educational philosophy and program;
requires participation of all resident students for enrollment and graduation;
includes learning objectives, evaluation, and a record of work performance as part of the student's college record;
provides programmatic leadership by college personnel at levels comparable to traditional academic programs;
recognizes the educational role of work-learning-service supervisors; and
includes consequences for nonperformance or failure in the work-learning-service program similar to the consequences for failure in the regular academic program.
; and
in subsection (f), by striking 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years
and inserting 2005 and such sums as may be necessary for the 5 succeeding fiscal years
.
Federal Direct Loan Program
Reauthorization of the Direct Loan Program
Administrative expenses
Section 458(a)(1) (20 U.S.C. 1087h(a)(1)) is amended by striking $617,000,000
and all that follows through fiscal year 2003
and inserting $807,000,000 in fiscal year 2005, $820,000,000 in fiscal year 2006, $833,000,000 in fiscal year 2007, $847,000,000 in fiscal year 2008, $862,000,000 in fiscal year 2009, and $878,000,000 in fiscal year 2010
.
Calculation basis
Subsection (b) of section 458 (20 U.S.C. 1087h(b)) is amended by striking shall be calculated—
and all that follows through the end of such subsection and inserting shall be calculated on the basis of 0.10 percent of the original principal amount of outstanding loans on which insurance was issued under part B.
.
Special rules: fee cap
Section 458(c)(1) (20 U.S.C. 1087h(c)(1)) is amended by striking subparagraphs (A) through (E) and inserting the following:
for fiscal year 2005, shall not exceed $207,000,000;
for fiscal year 2006, shall not exceed $220,000,000;
for fiscal year 2007, shall not exceed $233,000,000;
for fiscal year 2008, shall not exceed $247,000,000;
for fiscal year 2009, shall not exceed $262,000,000; and
for fiscal year 2010, shall not exceed $278,000,000.
.
Consolidation loan eligibility
Section 455(g) (20 U.S.C. 1087e(g)) is amended by adding at the end (after the sentence added by section 425(b)(2) of this Act) the following new sentence: To be eligible for a consolidation loan under this part, a borrower must meet all the eligibility criteria set forth in section 428C(a)(3).
.
Federal Perkins Loan Program
Reauthorization of program
Program authorization
Authorization of appropriations
Section 461(b) (20 U.S.C. 1087aa(b)) is amended—
in paragraph (1)—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
; and
in paragraph (2), by striking 2003
each place it appears and inserting 2011
.
Federal capital contribution recovery
Section 466 (20 U.S.C. 1087ff) is amended—
by striking 2004
each place it appears in subsections (a), (b), and (c) and inserting 2011
;
in subsection (a), by striking 2003
each place it appears and inserting 2010
; and
in subsection (b), by striking 2012
and inserting 2019
.
Phaseout of allocation based on previous allocations
Amendment
Subsection (a) of section 462 (20 U.S.C. 1087bb(a)) is amended to read as follows:
Allocation based on previous allocation
Base guarantee
From the amount appropriated pursuant to section 461(b) for each fiscal year after fiscal year 2006, the Secretary shall, subject to paragraphs (2) and (3), first allocate to each eligible institution an amount equal to—
100 percent of the amount such institution received under subsection (a) of this section for fiscal year 2006 (as such subsection was in effect with respect to allocations for such fiscal year), multiplied by
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.
Phase out
For each of the fiscal years after fiscal year 2006, paragraph (1) shall be applied by substituting for 100 percent
:
80 percent
for fiscal years 2007 and 2008;
60 percent
for fiscal years 2009 and 2010;
40 percent
for fiscal years 2011 and 2012;
20 percent
for fiscal years 2013 and 2014; and
0 percent
for fiscal year 2015 and any succeeding fiscal year.
Ratable reductions for insufficient appropriations
Reduction of base guarantee
If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under this subsection, then the amount of the allocation to each such institution shall be ratably reduced.
Additional appropriations allocation
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 this subsection).
.
Effective date
The amendment made by paragraph (1) shall apply with respect to any amounts appropriated under section 461(b) of the Higher Education Act of 1965 (20 U.S.C. 1087bb(b)) for fiscal year 2007 or any succeeding fiscal year.
Books and supplies
Section 462(c)(4)(D) (20 U.S.C. 1087bb(c)(4)(D)) is amended by striking $450
and inserting $600
.
Loan terms and conditions
Loan limits
Section 464(a) (20 U.S.C. 1087dd(a))—
in paragraph (2)(A)—
by striking $4,000
in clause (i) and inserting $5,500
; and
by striking $6,000
in clause (ii) and inserting $8,000
; and
in paragraph (2)(B)—
by striking $40,000
in clause (i) and inserting $60,000
;
by striking $20,000
in clause (ii) and inserting $27,500
; and
by striking $8,000
in clause (iii) and inserting $11,000
.
Forbearance
Section 464(e) (20 U.S.C. 1087dd(e)) is amended by striking , upon written request,
.
Special repayment rule
Paragraph (2) of section 464(f) is amended to read as follows:
No compromise repayment of a defaulted loan as authorized by paragraph (1) may be made unless agreed to by the Secretary.
.
Rehabilitation
Section 464(h)(1)(A) (20 U.S.C. 1087dd(h)(1)(A)) is amended by striking 12 ontime
and inserting 9 on-time
.
Loan cancellation
Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is amended—
by inserting (D),
after subparagraph (A), (C),
in clause (i);
by inserting or
after the semicolon at the end of clause (ii);
by striking clause (iii); and
by redesignating clause (iv) as clause (iii).
Technical amendments
Part E is further amended as follows:
Section 462(g)(1)(E)(i)(I) (20 U.S.C. 1087bb(g)(1)(E)(i)(I)) is amended by inserting monthly
after consecutive
.
Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is amended by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively.
Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended—
in subparagraph (A), by striking section 111(c)
and inserting section 1113(a)(5)
; and
in subparagraph (C), by striking With Disabilities
and inserting with Disabilities
.
Section 467(b) (20 U.S.C. 1087gg(b)) is amended by striking (5)(A), (5)(B)(i), or (6)
and inserting (4)(A), (4)(B), or (5)
.
Section 469(c) (20 U.S.C. 1087ii(c)) is amended—
by striking sections 602(a)(1) and 672(1)
and inserting sections 602(3) and 632(5)
;
by striking qualified professional provider of early intervention services
and inserting early intervention services
; and
by striking section 672(2)
and inserting section 632(4)
.
Need Analysis
Simplified needs test improvements
Section 479 (20 U.S.C. 1087ss) is amended—
by striking clause (i) of subsection (b)(1)(A) and inserting the following:
the student’s parents file a form described in paragraph (3) or certify that they are not required to file an income tax return, and the student files such a form or certifies that the student is not required to file an income tax return, or the student’s parents receive benefits under a means-tested Federal benefit program;
.
by striking clause (i) of subsection (b)(1)(B) and inserting the following:
the student (and the student’s spouse, if any) files a form described in paragraph (3) or certifies that the student (and the student’s spouse, if any) is not required to file an income tax return, or the student (and the student’s spouse, if any) receives benefits under a means-tested Federal benefit program;
;
by striking subparagraph (A) of subsection (c)(1) and inserting the following:
the student’s parents file a form described in subsection (b)(3) or certify that they are not required to file an income tax return, and the student files such a form or certifies that the student is not required to file an income tax return, or the student’s parents receive benefits under a means-tested Federal benefit program;
;
by striking subparagraph (A) of subsection (c)(2) and inserting the following:
the student (and the student’s spouse, if any) files a form described in subsection (b)(3) or certifies that the student (and the student’s spouse, if any) is not required to file an income tax return, or the student (and the student’s spouse, if any) receives benefits under a means-tested Federal benefit program;
; and
by adding at the end the following new subsection:
Definition of means-tested federal benefit program
For purposes of this section, 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 programs' benefits, or the amount of such benefits, or both, are determined on the basis of income or resources of the individual or family seeking the benefit, and may include such programs as the supplemental security income program under title XVI of the Social Security Act, the food stamp program under the Food Stamp Act of 1977, and the free and reduced price school lunch program under the Richard B. Russell National School Lunch Act, and other programs identified by the Secretary.
.
Additional need analysis amendments
Income protection allowance for dependent students
—
Amendment
Section 475(g)(2)(D) (20 U.S.C. 1087oo(g)(2)(D)) is amended by striking $2,200
and inserting $3,000
.
Effective date
The amendment made by paragraph (1) shall apply with respect to determinations of need for periods of enrollment beginning on or after July 1, 2005.
Employment expense allowance
Section 478(h) (20 U.S.C. 1087rr(h)) is amended—
by striking 476(b)(4)(B),
; and
by striking meals away from home, apparel and upkeep, transportation, and housekeeping services
and inserting food away from home, apparel, transportation, and household furnishings and operations
.
Discretion of student financial aid administrators
Section 479A(a) (20 U.S.C. 1087tt(a)) is amended—
by striking (a) In General.—
and inserting the following:
Authority to make adjustments
Adjustments for special circumstances
;
by inserting before Special circumstances may
the following:
Special circumstances defined
;
by inserting a student's status as a ward of the court at any time prior to attaining 18 years of age,
after 487,
;
by inserting before Adequate documentation
the following:
Documentation and use of supplementary information
; and
by inserting before No student
the following:
Fees for supplementary information prohibited
.
Treating active duty members of the Armed Forces as independent students
Section 480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by inserting before the semicolon at the end the following: or is currently serving on active duty in the Armed Forces for other than training purposes
.
Excludable income
Section 480(e) (20 U.S.C. 1087vv(e)) is amended—
by striking and
at the end of paragraph (3);
by striking the period at the end of paragraph (4); and
by adding at the end the following new paragraph:
any part of any distribution from a qualified tuition program established under section 529 of the Internal Revenue Code of 1986 that is not includable in gross income under such section 529.
.
Treatment of savings plans
Amendment
Section 480(f) (20 U.S.C. 1087vv(f)) is amended—
in paragraph (1), by inserting qualified tuition programs established under section 529 of the Internal Revenue Code of 1986 (26 U.S.C. 529), except as provided in subparagraph (2),
after tax shelters,
;
by redesignating paragraph (2) as paragraph (3); and
by inserting after paragraph (1) the following new paragraph:
A qualified tuition program shall not be considered an asset of a dependent student under section 475 of this part. The value of a qualified tuition program for purposes of determining the assets of parents or independent students shall be—
the refund value of any tuition credits or certificates purchased under section 529 of the Internal Revenue Code of 1986 (26 U.S.C. 529) on behalf of a beneficiary; or
the current balance of any account which is established under such section for the purpose of meeting the qualified higher education expenses of the designated beneficiary of the account.
.
Conforming amendment
Section 480(j) (20 U.S.C. 1087vv(j)) is amended—
by striking ; Tuition prepayment plans
in the heading of such subsection;
by striking paragraph (2);
in paragraph (3), by inserting , or a distribution that is not includible in gross income under section 529 of such Code,
after 1986
; and
by redesignating paragraph (3) as paragraph (2).
General Provisions Relating to Student Financial Assistance
Definition of academic year
Paragraph (2) of section 481(a) (20 U.S.C. 1088(a)) is amended to read as follows:
For the purpose of any program under this title, the term academic year shall—
require a minimum of 30 weeks of instructional time for a course of study that measures its program length in credit hours; or
require a minimum of 26 weeks of instructional time for a course of study that measures its program length in clock hours; and
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.
.
Distance education
Distance education: eligible program
Section 481(b) (20 U.S.C. 1088(b)) is amended by adding at the end the following new paragraph:
Distance education
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 this paragraph) to have the capability to effectively deliver distance education programs by an accrediting agency or association that—
is recognized by the Secretary under subpart 2 of Part H; and
has evaluation of distance education programs within the scope of its recognition, as described in section 496(n)(3).
.
Correspondence courses
Section 484(l)(1) (20 U.S.C. 1091(l)(1)) is amended—
in subparagraph (A)—
by striking for a program of study of 1 year or longer
; and
by striking unless the total
and all that follows through courses at the institution
; and
by amending subparagraph (B) to read as follows:
Exception
Subparagraph (A) does not apply to an institution or school described in section 3(3)(C) of the Carl D. Perkins Vocational and Technical Education Act of 1998.
.
Expanding information dissemination regarding eligibility for Pell Grants
Section 483(a) (20 U.S.C. 1090(a)) is amended by adding at the end the following new paragraph:
Expanding information dissemination regarding eligibility for Pell Grants
The Secretary shall make special efforts, in conjunction with State efforts, to notify students and their parents who qualify for a free lunch under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.), the Food Stamps program, or such other programs as the Secretary shall determine, of their potential eligibility for a maximum Pell Grant, and shall disseminate such informational materials as the Secretary deems appropriate.
.
Student eligibility
Suspension of eligibility for drug offenses
Section 484(r)(1) (20 U.S.C. 1091(r)(1)) is amended by striking everything preceding the table and inserting the following:
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:
.
Freely associated states
Section 484(j) (20 U.S.C. 1091(j)) is amended by inserting and shall be eligible only for assistance under subpart 1 of part A thereafter,
after part C,
.
Verification of income date
Paragraph (1) of section 484(q) (20 U.S.C. 1091(q)) is amended to read as follows:
Confirmation with irs
The Secretary of Education, in cooperation with the Secretary of the Treasury, is authorized to confirm with the Internal Revenue Service the information specified in section 6103(l)(13) of the Internal Revenue Code of 1986 reported by applicants (including parents) under this title on their Federal income tax returns for the purpose of verifying the information reported by applicants on student financial aid applications.
.
Pell grant eligibility provision
Section 484 is amended by adding at the end the following new subsection:
Pell grant eligibility provision
A student who does not have a certificate of graduation from a school providing secondary education may be eligible for assistance under subpart 1 of Part A of this title for no more than two academic years, if such student—
meets all eligibility requirements for such assistance (other than not being enrolled in an elementary or secondary school) and is an academically gifted and talented student, as defined in section 9101 of the Elementary and Secondary Education Act;
is in the junior or senior year of secondary school, and has not received any assistance under this title;
is selected for participation and is enrolled full-time and resides on campus in a residential college gifted student program for early enrollment, leading to fully transferable college academic credit;
does not and will not participate in any secondary school course work during or after such program; and
has entered into an agreement that, if the student fails to complete the entirety of the academic program for which assistance under subpart 1 of Part A of this title was received, or participates in secondary school course work after participating in such program, the student will repay all funds received under such subpart pursuant to this subsection to the Federal Government in accordance with regulations promulgated by the Secretary.
.
Technical amendment
Section 484(b)(5) is amended by inserting or parent (on behalf of a student)
after student
.
Institutional refunds
Section 484B (20 U.S.C. 1091b) is amended—
in subsection (a)(1), by inserting subpart 4 of part A or
after received under
;
in subsection (a)(2), by striking takes a leave
and by inserting takes one or more leaves
;
in subsection (a)(3)(B)(ii), by inserting (as determined in accordance with subsection (d))
after student has completed
;
in subsection (a)(4), by amending subparagraph (A) to read as follows:
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 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.
.
in subsection (b)(1), by inserting no later than 45 days from the determination of withdrawal
after return
;
in subsection (b)(2), by amending subparagraph (C) to read as follows:
Grant overpayment requirements
In General
Notwithstanding subparagraphs (A) and (B), a student shall only be required to return grant assistance in the amount (if any) by which—
the amount to be returned by the student (as determined under subparagraphs (A) and (B)), exceeds
50 percent of the total grant assistance received by the student under this title for the payment period or period of enrollment.
Minimum
A student shall not be required to return amounts of $50 or less.
; and
in subsection (d), by striking (a)(3)(B)(i)
and inserting (a)(3)(B)
.
Institutional and financial assistance information for students
Information dissemination activities
Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended—
by amending the second sentence to read as follows: The information required by this section shall be produced and be made publicly available to an enrolled student and to any prospective student in a uniform and comprehensible manner, through appropriate publications, mailings, electronic media, and the reports required by the institution’s accrediting agency under section 496(c)(9).
;
by amending subparagraph (G) to read as follows:
the academic programs of the institution, including—
the current degree programs and other educational and training programs;
the institution’s learning objectives for those programs;
the instructional, laboratory, and other physical plant facilities which relate to the academic programs; and
the faculty and other instructional personnel;
;
by striking subparagraph (L) and inserting the following:
a summary of student outcomes for full-time undergraduate students, including—
the completion or graduation rates of certificate- or degree-seeking undergraduate students entering such institutions;
when readily available, information showing the number of undergraduate students that transfer out of the institution; and
any other student outcome data, qualitative or quantitative, including data regarding distance education deemed by the institution to be appropriate to its stated educational mission and goals, and, when applicable, licensing and placement rates for professional and vocational programs;
;
by inserting before the semicolon at the end of subparagraph (J) the following: , and the process for students to register complaints with the accrediting agencies or associations
;
in subparagraph (M), by striking guaranteed student loans under part B of this title or direct student loans under part E of this title, or both,
and inserting student loans under part B, D, or E of this title
;
by striking and
at the end of subparagraph (N);
by striking the period at the end of subparagraph (O) and inserting a semicolon; and
by adding at the end the following new subparagraphs:
the penalties contained in subsection 484(r) regarding suspension of eligibility for drug related offenses; and
the policies of the institution for accepting transfer of credit, explained in a manner that clearly states the basis for determining the acceptability and applicability of transfer of credits.
.
Additional amendments
Section 485(a) is further amended by striking paragraph (6) and inserting the following:
Each institution may provide supplemental information to enrolled and prospective students showing the completion or graduation rate for students described in paragraph (4). For the purpose of this paragraph, the definitions provided in the Integrated Postsecondary Education Data System shall apply.
Each eligible institution participating in any program under this title may publicly report to currently enrolled and prospective students the voluntary information collected by the National Survey of Student Engagement (NSSE), the Community College Survey of Student Engagement (CCSSE), or other instruments that provide evidence of student participation in educationally purposeful activities. The information shall be produced and made available in a uniform and comprehensible manner, through appropriate publications, mailings, and electronic media, and may be included in reports required by the institution's accrediting agency.
.
Exit counseling
Section 485(b) (20 U.S.C. 1092(b)) is amended by adding at the end the following new paragraph:
Each eligible institution shall, during the exit interview required by this subsection, provide to a borrower of a loan made under part B, D, or E a clear and conspicuous notice describing the effect of using a consolidation loan to discharge the borrower’s student loans, including—
the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;
the effects of consolidation on a borrower’s underlying loan benefits, including loan forgiveness, cancellation, and deferment;
the ability for the borrower to prepay the loan, pay on a shorter schedule, and to change repayment plans, and that borrower benefit programs may vary among different loan holders;
the tax benefits for which the borrower may be eligible; and
the consequences of default.
.
Campus crime information
Section 485(f)(1) (20 U.S.C. 1092(f)(1)) is amended by inserting , other than a foreign institution of higher education,
after under this title
.
Transfer of credit policies
Section 485 is further amended by adding at the end the following new subsection:
Transfer of credit policies
Disclosure
Each eligible institution participating in any program under this title shall publicly disclose in a readable and comprehensible manner its transfer of credit policies which shall include:
A statement of the institution's current transfer of credit policies that includes at least—
a statement that transfer of credit shall not be denied solely on the basis of the agency or association that accredited such other eligible institution, if that agency or association is recognized by the Secretary pursuant to section 496 to be a reliable authority as to the quality of the education or training offered; and
a statement that transfer of credit shall be decided on the basis of whether the courses or program are determined by the institution to be acceptable for credit in accordance with objective criteria that the institution publicly discloses and the student completed such courses or programs at the institution's required level of proficiency.
Statistics concerning the annual, as well as a 3-year rolling average, rate of the percentage of credits accepted in transfer and fully counted toward the degree or certificate completion requirements of undergraduate students. Such data shall be disaggregated to report on the following categories of institutions from which credits were accepted in transfer:
nationally accredited;
regionally accredited in the same State;
regionally accredited in the same region; and
regionally accredited in a different region.
Rule of construction
Nothing in this subsection shall be construed to—
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;
limit the application of the General Education Provisions Act; or
create any legally enforceable right.
.
College access initiative
Part G is further amended by inserting after section 485C (20 U.S.C. 1092c) the following new section:
College access initiative
State-by-state information
The Secretary shall direct each guaranty agency with which the Secretary has an agreement under section 428(c) to provide to the Secretary the information necessary for the development of web links and access for students and families to a comprehensive listing of the postsecondary education opportunities programs, publications, Internet Web sites, and other services available in the States for which such agency serves as the designated guarantor.
Guaranty agency activities
Plan and activity required
Each guaranty agency with which the Secretary has an agreement under section 428(c) shall develop a plan and undertake the activity necessary to gather the information required under subsection (a) and to make such information available to the public and to the Secretary in a form and manner as prescribed by the Secretary.
Activities
Each guaranty agency shall undertake such activities as are necessary to promote access to postsecondary education for students through providing information on college planning, career preparation, and paying for college. The guaranty agency shall publicize such information and coordinate such activities with other entities that either provide or distribute such information in the States for which such guaranty agency serves as the designated guarantor.
Funding
The activities required by this section may be funded from the guaranty agency’s operating account established pursuant to section 422B and to the extent funds remain, from earnings on the restricted account established pursuant to section 422(h)(4).
Access to information
Secretary’s responsibility
The Secretary shall ensure the availability of the information provided by the guaranty agencies in accordance with this section to students, parents and other interested individuals, through web links or other methods prescribed by the Secretary.
Guaranty agency responsibility
The guaranty agencies shall ensure that the information required by this section is available without charge in printed format for students and parents requesting such information.
Publicity
Within 270 days after the date of enactment of the &short-title1;, the Secretary and guaranty agencies shall publicize the availability of the information required by this section, with special emphasis on ensuring that populations that are traditionally underrepresented in postsecondary education are made aware of the availability of such information.
.
Distance education demonstration program
Eligible applicants
Section 486(b)(3) (20 U.S.C. 1093(b)(3)) is amended—
in subparagraph (B), by striking section 102(a)(1)(C)
and inserting section 102
; and
in subparagraph (C), by striking subsection (a) of section 102, other than the requirement of paragraph (3)(A) or (3)(B) of such subsection,
and inserting section 101, other than the requirements of subparagraph (A) or (B) of subsection (b)(4) of such section
.
Selection
Section 486(d)(1) (20 U.S.C. 1093(d)(1)) is amended—
by striking the third year
and inserting subsequent years
;
by striking 35 institutions
and inserting 100 institutions
; and
by adding at the end the following new sentence: Not more than 5 of such institutions, systems, or consortia may be accredited, degree-granting correspondence schools.
.
College affordability demonstration program
Part G of title IV is amended by inserting after section 486 (20 U.S.C. 1093) the following new section:
College affordability demonstration program
Purpose
It is the purpose of this section—
to provide, through a college affordability demonstration program, for increased innovation in the delivery of higher education and student financial aid in a manner resulting in reduced costs for students as well as the institution by accelerating degree or program completion, increasing availability of, and access to, distance components of education delivery, and other alternative methodologies; and
to help determine—
the most effective means of delivering student financial aid as well as quality education;
the specific statutory and regulatory requirements that should be altered to provide for more efficient and effective delivery of student financial aid, as well as access to high quality distance education programs, resulting in a student more efficiently completing postsecondary education; and
the most effective methods of obtaining and managing institutional resources.
Demonstration program authorized
In general
In accordance with the purposes described in subsection (a) and the provisions of subsection (d), the Secretary is authorized to select not more than 100 institutions of higher education or systems of such institutions for voluntary participation in the College Affordability Demonstration Program in order to enable participating institutions to carry out such purposes by providing programs of postsecondary education, and making available student financial assistance under this title to students enrolled in those programs, in a manner that would not otherwise meet the requirements of this title.
Waivers
The Secretary is authorized to waive for any institutions of higher education, or any system or consortia of institutions of higher education, selected for participation in the College Affordability Demonstration Program, any requirements of this Act or the regulations thereunder as deemed necessary by the Secretary to meet the purpose described in subsection (a)(1).
Eligible applicants
Eligible institutions
Prohibition
An institution of higher education described in section 102 shall not be eligible to participate in the demonstration program authorized under this section.
Application
In general
Each institution or system of institutions 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.
Contents of applications
Each application for the college affordability demonstration program shall include at least the following:
a description of the institution or system of institutions and what quality assurance mechanisms are in place to insure the integrity of the Federal financial aid programs;
a description of each regulatory or statutory requirement for which waivers are sought, with a reason for each waiver;
a description of the programs being offered and the affected students;
a description of the expected outcomes of the program changes proposed, including the estimated reductions in costs both for the institution and for students;
a description of any collaborative arrangements with other institutions or organizations to reduce costs;
a description of any expected economic impact of participation in the program within the community in which the institution is located;
a description of how the institution will reduce the costs of instructional materials, including textbooks;
an assurance that the participating institution or system of institutions will offer full cooperation with the ongoing evaluations of the demonstration program provided for in this section; and
any other information or assurances the Secretary may require.
Selection
In selecting institutions to participate in the demonstration program under this section, the Secretary shall take into account—
the number and quality of applications received, determined on the basis of the contents required by subsection (c)(2);
the Department’s capacity to oversee and monitor each institution’s participation;
an institution’s—
financial responsibility;
administrative capability;
program or programs being offered via distance education;
student completion rates; and
student loan default rates; and
the participation of a diverse group of institutions with respect to size, mission, and geographic distribution.
Notification
The Secretary shall make available to the public and to the authorizing committees a list of institutions and systems of institutions 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 or system of institutions and a description of the distance education courses to be offered.
Evaluations and Reports
Evaluation
The Secretary shall evaluate the demonstration program authorized under this section on a biennial basis. Such evaluations specifically shall review—
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;
issues related to student financial assistance for distance education;
effective technologies and alternative methodologies for delivering student financial assistance;
the extent of the cost savings to the institution, the student, and the Federal Government by virtue of the waivers provided, and an estimate as to future cost savings should the demonstration program continue;
the extent to which students saved money by virtue of completing their postsecondary education sooner;
the extent to which the institution reduced its tuition and fees and its costs by virtue of participation in the demonstration program;
the extent to which any collaborative arrangements with other institutions or organizations have reduced the participating institution’s costs; and
the extent to which statutory or regulatory requirements not waived under the demonstration program present difficulties for students or institutions.
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.
Reports
The Secretary shall provide a report to the authorizing committees on a biennial basis regarding—
the demonstration program authorized under this section;
the results of the evaluations conducted under paragraph (1);
the cost savings to the Federal Government by the demonstration program authorized by this section; and
recommendations for changes to increase the efficiency and effective delivery of financial aid.
Oversight
In conducting the demonstration program authorized under this section, the Secretary shall, on a continuing basis—
ensure compliance of institutions or systems of institutions with the requirements of this title (other than the sections and regulations that are waived under subsection (b)(2));
provide technical assistance to institutions in their application to and participation in the demonstration program;
monitor fluctuations in the student population enrolled in the participating institutions or systems of institutions;
monitor changes in financial assistance provided at the institution; and
consult with appropriate accrediting agencies or associations and appropriate State regulatory authorities.
Termination of authority
The authority of the Secretary under this section shall cease to be effective on October 1, 2010.
.
Program participation agreements
Refund policies
Section 487(a) (20 U.S.C. 1094(a)) is amended—
in paragraph (22), by striking refund policy
and inserting policy on the return of title IV funds
; and
in paragraph (23)—
by moving subparagraph (C) 2 em spaces to the left; and
by adding after such subparagraph the following new subparagraph:
An institution shall be considered in compliance with the requirements of subparagraph (A) for any 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, provided such information is in an electronic message devoted to voter registration.
.
Audit requirements
Section 487(c)(1)(A)(i) (20 U.S.C. 1094(c)(1)(A)(i)) is amended by inserting before the semicolon at the end the following: , 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;
.
Reports on disciplinary proceedings
Amendment
Section 487(a) (20 U.S.C. 1094(a)) is amended by adding at the end the following new paragraph:
The institution will disclose to the alleged victim of any crime of violence (as that term is defined in section 16 of title 18), or a nonforcible sex offense, the final 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, the next of kin of such victim shall be treated as the alleged victim for purposes of this paragraph.
.
Effective date
The amendment made by paragraph (1) shall apply with respect to any disciplinary proceeding conducted by such institution on or after one year after the date of enactment of this Act.
Additional technical and conforming amendments
Part G is further amended as follows:
Section 483(d) (20 U.S.C. 1090(d)) is amended by striking that is authorized under section 685(d)(2)(C)
and inserting , or another appropriate provider of technical assistance and information on postsecondary educational services, that is supported under section 685
.
Section 484 (20 U.S.C. 1091) is amended—
in subsection (a)(4), by striking certification,,
and inserting certification,
;
in subsection (b)(2)—
in the matter preceding subparagraph (A), by striking section 428A
and inserting section 428H
;
in subparagraph (A), by inserting and
after the semicolon at the end thereof;
in subparagraph (B), by striking ; and
and inserting a period; and
by striking subparagraph (C); and
in subsection (l)(1)(B)(i), by striking section 521(4)(C) of the Carl D. Perkins Vocational and Applied Technology Education Act
and inserting section 3(3)(C) of the Carl D. Perkins Vocational and Technical Education Act of 1998
.
Section 485B(a) (20 U.S.C. 1092b(a)) is amended—
by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively;
by redesignating the paragraph (5) (as added by section 2008 of Public Law 101–239) as paragraph (6); and
in paragraph (5) (as added by section 204(3) of the National Community Service Act of 1990 (Public Law 101–610))—
by striking (22 U.S.C. 2501 et seq.)),
and inserting (22 U.S.C. 2501 et seq.),
; and
by striking the period at the end thereof and inserting a semicolon.
Section 491(c) (20 U.S.C. 1098(c)) is amended by adding at the end the following new paragraph:
The appointment of members under subparagraphs (A) and (B) of paragraph (1) shall be effective upon publication of the appointment in the Congressional Record.
.
Section 491(k) (20 U.S.C. 1098(k)) is amended by striking 2004
and inserting 2011
.
Section 493A (20 U.S.C. 1098c) is repealed.
Section 498 (20 U.S.C. 1099c) is amended—
in subsection (c)(2), by striking for profit,
and inserting for-profit,
; and
in subsection (d)(1)(B), by inserting and
after the semicolon at the end thereof.
Program Integrity
Accreditation
Standards for accreditation
Section 496(a) (20 U.S.C. 1099b(a)) is amended—
in paragraph (3)—
by inserting or
after the semicolon at the end of subparagraph (A);
by striking subparagraph (B); and
by redesignating subparagraph (C) as subparagraph (B);
in paragraph (4)—
by inserting (A)
after (4)
;
by inserting and
after the semicolon at the end thereof; and
by adding at the end the following new subparagraph:
if such agency or association already has or seeks to include within its scope of recognition the evaluation of the quality of institutions or programs offering distance education, such agency or association shall, in addition to meeting the other requirements of this subpart—
demonstrate to the Secretary that, through application of its standards, procedures, and policies, particularly those required under paragraph (5) of this subsection, the agency or association determines that the quality of instruction and student support services for distance education is comparable to that provided by the institution in its classrooms and on its campuses (or if distance education is the only mode of delivery used by the institution, comparable to the quality of instruction and student support services provided in campus settings); and
evaluate how an institution offering distance education ensures the integrity of student participation in its distance education programs;
.
by inserting after standards
the following: (including standards to assess the quality of distance education that are comparable to the standards used for face-to-face classroom instruction)
;
in paragraph (5)—
by amending subparagraph (A) to read as follows:
success with respect to student achievement in relation to the institution's mission, including, as appropriate, consideration of student academic achievement as determined by the institution (in accordance with standards of the accrediting agency or association) related to each institution’s articulation of desired learning outcomes, retention, course and program completion, State licensing examinations, and job placement rates; and other student performance data selected by the institution, particularly data used by the institution to evaluate or strengthen its educational programs, and including thresholds for course completion and job placement rates if the institution offers certificate-granting vocation or technical programs;
;
in subparagraph (E), by striking fiscal and administrative capacity
and inserting fiscal, administrative, and governance capacity
; and
by amending subparagraph (I) to read as follows:
record of student complaints received by the agency or association, including those resulting from the process described in section 485(a)(1)(J); and
;
by striking and
at the end of paragraph (7); and
by striking paragraph (8) and inserting the following:
such agency or association shall make available to the public, and submit to the Secretary, for use in consumer information programs, a summary of agency or association actions, including—
the award of accreditation or reaccreditation of an institution and any findings made in connection with the accreditation or reaccreditation;
final denial, withdrawal, suspension, or termination of accreditation, or placement on probation of an institution;
any other adverse action taken with respect to an institution;
a list of the individuals who comprise the inspection and review teams for each agency or association, including each individual’s name, agency affiliation, and relevant professional experience;
a description of the agency’s or association’s process for selecting, training, and evaluating such individuals; and
the agency’s or association’s code of conduct for its commissioners and such individuals; and
such agency or association shall—
review, during its onsite comprehensive review, the transfer of credit policies of programs and institutions under its accreditation; and
not adopt or apply standards, policies, or practices that restrict or deny the transfer of credits earned by a student completing courses or programs at other eligible institutions of higher education solely on the basis of the agency or association that accredited such other eligible institution if that agency or association—
is recognized by the Secretary pursuant to this section to be a reliable authority as to the quality of the education or training offered; and
is currently listed by the Secretary pursuant to section 101(c).
.
Operating procedures
Section 496(c) (20 U.S.C. 1099b(c)) is amended—
by inserting (including those regarding distance education), and have several years of related experience
before the semicolon at the end of paragraph (1);
by striking and
at the end of paragraph (5);
by striking the period at the end of paragraph (6) and inserting a semicolon; and
by inserting after paragraph (6) the following new paragraphs:
ensures that its onsite comprehensive reviews for accreditation or reaccreditation include evaluation of the substance of the information required in subparagraphs (G) and (H) of section 485(a)(1);
confirms as a part of its review for accreditation or reaccreditation that the institution has transfer policies that are publicly disclosed and consistently applied;
develops as required in subsection (a)(8), a summary available to the public of the agency’s action and the significant findings related to that action;
includes, in its evaluation for accreditation or reaccreditation, review of the transfer of credit policies of the program or institution to assure that transfer policies do not deny transfer of credit based solely on the accreditation of the sending program or institution, except that nothing in this review shall restrict the right of the receiving program or institution to determine, on any other basis or on a combination of that basis together with other bases, the credits the receiving program or institution will accept for transfer; and
monitors the growth of distance education programs, evaluating, as appropriate, the development and management of such programs at institutions that are experiencing significant growth in distance education.
.
Limitation, suspension, and termination of recognition
Section 496(l) is amended by adding at the end the following new paragraph:
The Secretary shall provide an annual report to Congress on the status of any agency or association for which the Secretary has limited, suspended or terminated recognition under this subsection.
.
College consumer profile
Section 496 is further amended—
by redesignating subsection (o) as subsection (p); and
by inserting after subsection (n):
College consumer profile
Information dissemination
No accrediting agency or association shall be recognized by the Secretary as a reliable authority as to the quality of the education or training offered by an institution seeking to participate in the programs authorized under this title, unless the agency ensures each institution subject to its jurisdiction makes publicly available in a uniform and comprehensible manner, a college consumer profile including, at minimum, information on the institution’s—
mission;
student demographics;
accreditation;
faculty/student ratios;
faculty qualifications, including the number of faculty with terminal degrees;
tuition, fees, and other costs of attending the institution;
student services, including services for students with disabilities;
policies and procedures for evaluating and accepting credits earned by students transferring from other institutions and the percentage of such credits accepted;
completion and graduation rates; and
placement rates and other measures of success in preparing students for entry into or advancement in the workforce.
Publication of college consumer profile
The contents of the college consumer profile required by paragraph (1) shall be made public through dissemination via the Secretary’s data collection and dissemination system. The information required to be disclosed by section 485 may be used by the institution to provide (where applicable) the contents of the college consumer profile, but nothing in this subsection shall be construed to relieve the institution of any information disclosure requirement of such section.
.
Developing institutions
Definitional changes
Section 502(a) (20 U.S.C. 1101a(a)) is amended—
in paragraph (5)—
by inserting and
after the semicolon at the end of subparagraph (A);
by inserting at the end of the award year immediately preceding the date of application
after Hispanic students
in subparagraph (B);
by striking ; and
at the end of subparagraph (B) and inserting a period; and
by striking subparagraph (C); and
by striking paragraph (7).
Assurance of enrollment of needy students
Section 511(c) (20 U.S.C. 1103(c)) is amended—
by redesignating paragraphs (8) and (9) as paragraphs (9) and (10), respectively; and
by inserting after paragraph (7) the following new paragraph:
contain such assurances as the Secretary may require that the institution has an enrollment of needy students as required by section 502(b);
.
Additional amendments
Title V is further amended—
in section 502(a)(2)(A) (20 U.S.C. 1101a(a)(2)(A)), by redesignating clauses (v) and (vi) as clauses (vi) and (vii), respectively, and inserting after clause (iv) the following new clause:
which provides a program of not less than 2 years that is acceptable for full credit toward a bachelor’s degree; and
;
in section 503(b) (20 U.S.C. 1101b(b))—
by amending paragraph (2) to read as follows:
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.
;
by amending paragraph (12) to read as follows:
Establishing community outreach programs and collaborative partnerships between Hispanic-serving institutions and local elementary or secondary schools. Such partnerships may include mentoring, tutoring, or other instructional opportunities that will boost student academic achievement and assist elementary and secondary school students in developing the academic skills and the interest to pursue postsecondary education.
;
by redesignating paragraphs (5) through (14) as paragraphs (6) through (15), respectively; and
by inserting after paragraph (4) the following:
Education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents.
; and
in section 504(a) (20 U.S.C. 1101c(a))—
by striking the following:
Award Period
In general
The Secretary
and inserting the following:
Award period
The Secretary
; and
by striking paragraph (2).
Title V authorization
Subsection (a) of section 518 of such Act (20 U.S.C. 1103g(a)) is amended to read as follows:
Authorizations of appropriations
There are authorized to be appropriated to carry out this title $96,000,000 for fiscal year 2005 and such sums as may be necessary for each of the 5 succeeding fiscal years.
.
Title VI amendments
Sense of the House
It is the sense of the House of Representatives that title VI of the Higher Education Act of 1965 should be amended as provided in H.R. 3077 as passed by the House of Representatives on October 21, 2003.
Title VII amendments
Sense of the House
It is the sense of the House of Representatives that title VII of the Higher Education Act of 1965 should be amended as provided in H.R. 3076 as passed by the House of Representatives on October 21, 2003.
Clerical amendments
Clerical amendments
Definition
Section 103 (20 U.S.C. 1003) is amended—
by redesignating paragraphs (1) through (16) as paragraphs (2) through (17), respectively; and
by inserting before paragraph (2) (as so redesignated) the following new paragraph:
Authorizing committees
The term authorizing committees means the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives.
.
Committees
The following provisions are each amended by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives
and inserting authorizing committees
:
Section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)).
Section 131(c)(4) (20 U.S.C. 1015(c)(4)).
Section 206(d) (20 U.S.C. 1026(d)).
Section 207(c)(1) (20 U.S.C. 1027(c)(1)).
Section 428(g) (20 U.S.C. 1078(g)).
Section 428A(a)(4) (20 U.S.C. 1078–1(a)(4)).
Section 428A(c)(2) (20 U.S.C. 1078–1(c)(2)).
Section 428A(c)(3) (20 U.S.C. 1078–1(c)(3)).
Section 428A(c)(5) (20 U.S.C. 1078–1(c)(5)).
Section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)).
Section 483(c) (20 U.S.C. 1090(c)).
Section 486(e) (20 U.S.C. 1093(e)).
Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).
Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).
Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).
Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).
Section 487A(b)(3)(B) (20 U.S.C. 1094a(b)(3)(B)).
Section 498B(d)(1) (20 U.S.C. 1099c–2(d)(1)).
Section 498B(d)(2) (20 U.S.C. 1099c–2(d)(2)).
The following provisions are each amended by striking Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate
and inserting authorizing committees
:
Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).
Section 428(n)(4) (20 U.S.C. 1078(n)(4)).
Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).
Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).
Section 206(a) (20 U.S.C. 1026(a)) is amended by striking , the Committee on Labor and Human Resources of the Senate, and the Committee on Education and the Workforce of the House of Representatives
and inserting and the authorizing committees
.
Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by striking Committee on Appropriations and the Committee on Labor and Human Resources of the Senate and the Committee on Appropriations and the Committee on Education and the Workforce of the House of Representatives
and inserting Committees on Appropriations of the Senate and House of Representatives and the authorizing committees
.
Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is amended by striking House Committee on Education and the Workforce and the Senate Committee on Labor and Human Resources
and inserting authorizing committees
.
Section 428I(h) (20 U.S.C. 1078–9(h)) is amended by striking Chairman of the Senate Labor and Human Resources Committee and the House Committee on Education and Labor
and inserting chairpersons of the authorizing committees
.
Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is amended by striking Committee on Education and the Workforce of the House of Representatives or the Committee on Labor and Human Resources of the Senate
and inserting either of the authorizing committees
.
Section 439(d)(1)(E)(iii) (20 U.S.C. 1087–2(d)(1)(E)(iii)) is amended by striking Chairman and the Ranking Member on the Committee on Labor and Human Resources of the Senate and the Chairman and the Ranking Member of the Committee on Education and Labor of the House of Representatives
and inserting chairpersons and ranking minority members of the authorizing committees
.
Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C. 1087–2(r)) are each amended by striking Chairman and ranking minority member of the Committee on Labor and Human Resources of the Senate, the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives,
and inserting chairpersons and ranking minority members of the authorizing committees
.
Paragraphs (5)(B) and (10) of section 439(r) (20 U.S.C. 1087–2(r)) are each amended by striking Chairman and ranking minority member of the Senate Committee on Labor and Human Resources and to the Chairman and ranking minority member of the House Committee on Education and Labor
and inserting chairpersons and ranking minority members of the authorizing committees
.
Section 439(r)(6)(B) (20 U.S.C. 1087–2(r)(6)(B)) is amended by striking Chairman and ranking minority member of the Committee on Labor and Human Resources of the Senate and to the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives
and inserting chairpersons and ranking minority members of the authorizing committees
.
Section 439(s)(2)(A) (20 U.S.C. 1087–2(s)(2)(A)) is amended by striking Chairman and Ranking Member of the Committee on Labor and Human Resources of the Senate and the Chairman and Ranking Member of the Committee on Economic and Educational Opportunities of the House of Representatives
and inserting chairpersons and ranking minority members of the authorizing committees
.
Section 439(s)(2)(B) (20 U.S.C. 1087–2(s)(2)(B)) is amended by striking Chairman and Ranking Minority Member of the Committee on Labor and Human Resources of the Senate and Chairman and Ranking Minority Member of the Committee on Economic and Educational Opportunities of the House of Representatives
and inserting chairpersons and ranking minority members of the authorizing committees
.
Section 482(d) (20 U.S.C. 1089(d)) is amended by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives
and inserting authorizing committees
.
Additional clerical amendments
Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C. 1075(a)(2)(A)) are each amended by striking 428A or 428B
and inserting 428B or 428H
.
Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is amended by striking 428A or
.
Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C. 1078(b)(1)(B)) are each amended by striking 428A or 428B
and inserting 428B or 428H
.
Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is amended by striking sections 428A and 428B
and inserting section 428B or 428H
.
Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is amended by striking 428A, 428B,
and inserting 428B
.
Section 428G(c)(2) (20 U.S.C. 1078–7(c)(2)) is amended by striking 428A
and inserting 428H
.
The heading for section 433(e) (20 U.S.C. 1083(e)) is amended by striking SLS Loans and
.
Section 433(e) (20 U.S.C. 1083(e)) is amended by striking 428A, 428B,
and inserting 428B
.
Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended—
by inserting or
at the end of subparagraph (A);
by striking subparagraph (B); and
by redesignating subparagraph (C) as subparagraph (B).
Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is amended by striking 428A(d), 428B(d), 428C,
and inserting 428B(d), 428C, 428H,
.
Section 435(m) (20 U.S.C. 1085(m)) is amended—
in paragraph (1)(A), by striking , 428A,
; and
in paragraph (2)(D), by striking 428A
each place it appears and inserting 428H
.
Section 438(b)(2)(D) (20 U.S.C. 1087–1(b)(2)(D)) is amended by striking division (i) of this subparagraph
and inserting clause (i) of this subparagraph
.
Section 438(c)(6) (20 U.S.C. 1087–1(c)(6)) is amended—
by striking SLS and plus
in the heading and inserting Plus
; and
by striking 428A or
.
Section 438(c)(7) (20 U.S.C. 1087–1(c)(7)) is amended by striking 428A or
.
Nothing in the amendments made by this subsection shall be construed to alter the terms, conditions, and benefits applicable to Federal supplemental loans for students (SLS loans
) under section 428A as in effect prior to July 1, 1994 (20 U.S.C. 1078–1).
Student loan forgiveness for families of 9/11 victims
Cancellation of student loan indebtedness for spouses, surviving joint debtors, and parents
Definitions
For purposes of this section:
Eligible public servant
The term eligible public servant means an individual who—
served as a police officer, firefighter, other safety or rescue personnel, or as a member of the Armed Forces; and
died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001;
Eligible victim
The term eligible victim means an individual who died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001, as determined in accordance with regulations of the Secretary.
Eligible parent
The term eligible parent means the parent of an eligible victim if—
the parent owes a Federal student loan that is a consolidation loan that was used to repay a PLUS loan incurred on behalf of such eligible victim; or
the parent owes a Federal student loan that is a PLUS loan incurred on behalf of an eligible victim who became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001.
Secretary
The term Secretary means the Secretary of Education.
Federal student loan
The term Federal student loan means any loan made, insured, or guaranteed under part B, D, or E of title IV of the Higher Education Act of 1965.
Relief from indebtedness
In General
The Secretary shall provide for the discharge or cancellation of—
the Federal student loan indebtedness of the spouse of an eligible public servant, as determined in accordance with regulations of the Secretary, including any consolidation loan that was used jointly by the eligible public servant and his or her spouse to repay the Federal student loans of the spouse and the eligible public servant;
the portion incurred on behalf of the eligible victim (other than an eligible public servant), of a Federal student loan that is a consolidation loan that was used jointly by the eligible victim and his or her spouse, as determined in accordance with regulations of the Secretary, to repay the Federal student loans of the eligible victim and his or her spouse;
the portion of the consolidation loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim; and
the PLUS loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim.
Method of discharge or cancellation
A loan required to be discharged or canceled under paragraph (1) shall be discharged or canceled by the method used under section 437(a), 455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 (20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is applicable to such loan.
Facilitation of claims
The Secretary shall—
establish procedures for the filing of applications for discharge or cancellation under this section by regulations that shall be prescribed and published within 90 days after the date of enactment of this Act and without regard to the requirements of section 553 of title 5, United States Code; and
take such actions as may be necessary to publicize the availability of discharge or cancellation of Federal student loan indebtedness under this section.
Availability of funds for payments
Funds available for the purposes of making payments to lenders in accordance with section 437(a) for the discharge of indebtedness of deceased or disabled individuals shall be available for making payments under section 437(a) to lenders of loans as required by this section.
Applicable to outstanding debt
The provisions of this section shall be applied to discharge or cancel only Federal student loans (including consolidation loans) on which amounts were owed on September 11, 2001. Nothing in this section shall be construed to authorize any refunding of any repayment of a loan.
Amendments to other education laws
Education of the Deaf Act of 1986
Laurent Clerc National Deaf Education Center
General authority
Section 104(a)(1)(A) of the Education of the Deaf Act of 1986 (20 U.S.C. 4304(a)(1)(A)) is amended by inserting after maintain and operate
the following: , at the Laurent Clerc National Deaf Education Center,
.
Administrative requirements
In general
Section 104(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 4304(b)) is amended—
in the matter preceding subparagraph (A) of paragraph (1), by striking elementary and secondary education programs
and inserting Laurent Clerc National Deaf Education Center
; and
in paragraph (2), by striking elementary and secondary education programs
and inserting Laurent Clerc National Deaf Education Center
.
Academic content standards, achievement standards, and assessments
Section 104(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 4304(b)) is amended by adding at the end the following new paragraph:
The University, in consultation with the Secretary, shall—
not later than the beginning of the 2006–2007 academic year, adopt and implement academic content standards, academic achievement standards, and academic assessments as described in section 1111(b) of the Elementary and Secondary Education Act of 1965 for the Laurent Clerc National Deaf Education Center;
develop adequate yearly progress standards for the Center as described in section 1111(2)(C) of such Act; and
make available to the public the results of such assessments, except in such case in which such reporting would not yield statistically reliable information or would reveal personally identifiable information about an individual student.
.
Authority
Section 111 of the Education of the Deaf Act of 1986 (20 U.S.C. 4331) is amended by striking the institution of higher education with which the Secretary has an agreement under this part
and inserting the Rochester Institute of Technology
.
Agreement for the National Technical Institute for the Deaf
General authority
Section 112(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4332(a)) is amended—
in paragraph (1)—
in the first sentence—
by striking an institution of higher education
and inserting the Rochester Institute of Technology, Rochester, New York,
; and
by striking of a
and inserting of the
; and
by striking the second sentence; and
in paragraph (2)—
in the matter preceding subparagraph (A), by striking the institution of higher education with which the Secretary has an agreement under this section
and inserting the Rochester Institute of Technology
; and
in subparagraph (B), by striking the institution
and inserting the Rochester Institute of Technology
.
Provisions of agreement
Section 112(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 4332(b)) is amended—
in paragraph (2), by striking or other governing body of the institution
and inserting of the Rochester Institute of Technology
; and
in paragraph (3)—
by striking or other governing body of the institution
and inserting of the Rochester Institute of Technology
;
by striking the institution of higher education under the agreement with the Secretary
and inserting the Rochester Institute of Technology by the National Technical Institute for the Deaf
; and
by striking Committee on Education and Labor of the House of Representatives and to the Committee on Labor and Human Resources of the Senate
and inserting Committee on Education and the Workforce of the House of Representatives and to the Committee on Health, Education, Labor, and Pensions of the Senate
.
Limitation
Section 112(c) of the Education of the Deaf Act of 1986 (20 U.S.C. 4332(c)) is amended in paragraphs (1) and (2) by striking institution
each place it appears and inserting Rochester Institute of Technology
.
Definitions
Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C. 4351) is amended—
by striking paragraph (3);
by redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively; and
by adding at the end the following new paragraph:
The term RIT
means the Rochester Institute of Technology.
.
Audit
Independent financial and compliance audit
Section 203(b)(1) of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(1)) is amended by striking the second sentence and inserting the following: NTID shall have an annual independent financial and compliance audit made of RIT programs and activities, including NTID programs and activities.
.
Compliance
Section 203(b)(2) of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(2)) is amended by striking sections
and all that follows through section 207
and inserting sections 102(b), 105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c) through (f) of section 207
.
Submission of audits
Section 203(b)(3) of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(3)) is amended—
by inserting after Secretary
the following: and the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate
; and
by striking or the institution authorized to establish and operate the NTID under section 112(a)
and inserting or RIT
.
Limitations regarding expenditure of funds
Section 203(c)(2)(A) of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(c)(2)(A)) is amended in the fifth sentence by striking the Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate
and inserting the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate
.
Reports
Technical amendments
Section 204 of the Education of the Deaf Act of 1986 (20 U.S.C. 4354) is amended in the matter preceding paragraph (1)—
by striking or other governing body of the institution of higher education with which the Secretary has an agreement under section 112
and inserting of RIT
; and
by striking Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate
and inserting Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate
.
Contents of report
Section 204 of the Education of the Deaf Act of 1986 (20 U.S.C. 4354) is amended—
in paragraph (2)(C), by striking upon graduation/completion
and inserting within one year of graduation/completion
; and
in paragraph (3)(B), by striking of the institution of higher education with which the Secretary has an agreement under section 112, including specific schedules and analyses for all NTID funds, as required under section 203
and inserting of RIT programs and activities
.
Liaison for educational programs
Section 206(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4356(a)) is amended by striking Not later than 30 days after the date of enactment of this Act, the
and inserting The
.
Federal endowment programs for Gallaudet University and the National Technical Institute for the Deaf
Section 207(a)(2) of the Education of the Deaf Act of 1986 (20 U.S.C. 4357(a)(2)) is amended by striking or other governing body of the institution of higher education with which the Secretary has an agreement under section 112
and inserting of RIT
.
Oversight and effect of agreements
Section 208(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4359(a)) is amended—
by striking the institution of higher education with which the Secretary has an agreement under part B of title I
and inserting RIT
; and
by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives
and inserting Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate
.
Authorization of appropriations
Monitoring and evaluation activities
Section 205(c) of the Education of the Deaf Act of 1986 (20 U.S.C. 4355(c)) is amended by striking fiscal years 1998 through 2003
and inserting fiscal years 2004 through 2009
.
Federal endowment programs for Gallaudet University and the national technical institute for the deaf
Section 207(h) of the Education of the Deaf Act of 1986 (20 U.S.C. 4357(h)) is amended in paragraphs (1) and (2) by striking fiscal years 1998 through 2003
each place it appears and inserting fiscal years 2004 through 2009
.
General authorization of appropriations
Section 212 of the Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended—
in the matter preceding paragraph (1) in subsection (a), by striking fiscal years 1998 through 2003
and inserting fiscal years 2004 through 2009
; and
in subsection (b), by striking fiscal years 1998 through 2003
and inserting fiscal years 2004 through 2009
.
Additional education laws
Amendment to Higher Education Amendments of 1998
Repeals of expired and executed provisions
The following provisions of the Higher Education Amendments of 1998 are repealed:
Study of market mechanisms in Federal student loan programs
Section 801 (20 U.S.C. 1018 note).
Study of feasibility of alternate financial instruments for determining lender yields
Section 802.
Student related debt study
Section 803 (20 U.S.C. 1015 note)
Study of opportunities for participation in athletic programs
Section 805 (20 U.S.C. 1001 note).
Community scholarship mobilization
Part C (20 U.S.C. 1070 note).
Incarcerated youth
Part D (20 U.S.C. 1151).
Improving United States understanding of science, engineering, and technology in East Asia
Part F (20 U.S.C. 1862 note).
Web-based education commission
Part J.
Extensions of authorizations and studies
Transfer of credit
Section 804(b) (20 U.S.C. 1099b note) is amended—
by striking one year after the date of enactment of this Act
and inserting September 30, 2006
; and
by inserting and policies of institutions of higher education
after agencies or associations
.
Cohort default rate study
Section 806 is amended—
in subsection (a), by striking higher education at which less
and inserting higher education. The study shall also review the effect of cohort default rates specifically on institutions of higher education at which less
; and
in subsection (c), by striking September 30, 1999,
and inserting September 30, 2006,
.
Violence against women
Section 826 (20 U.S.C. 1152) is amended—
in subsection (g)—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
; and
by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.
Underground railroad
Subsection (c) of section 841 (20 U.S.C. 1153(c)) is amended to read as follows:
Authorization of appropriations
There are authorized to be appropriated to carry out this section $3,000,000 for fiscal year 2005 and such sums as may be necessary for each of the 5 succeeding fiscal years.
.
Disbursement of student loans
Section 422(d) of the Higher Education Amendments of 1998 (Public Law 105–244; 112 Stat. 1696) is amended by adding at the end the following new sentence: Such amendments shall also be effective on and after July 1, 2005.
.
Tribally Controlled College or University Assistance Act of 1978
Title I authorization
Section 110(a) of the Tribally Controlled Community College or University Assistance Act of 1978 (25 U.S.C. 1810(a)) is amended—
by striking 1999
each place it appears and inserting 2005
; and
by striking 4 succeeding
each place it appears and inserting 5 succeeding
.
Title III reauthorization
Section 306(a) of the Tribally Controlled Community College or University Assistance Act of 1978 (25 U.S.C. 1836(a)) is amended—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
.
Title IV reauthorization
Section 403 of the Tribal Economic Development and Technology Related Education Assistance Act of 1990 (25 U.S.C. 1852) is amended—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
.
Additional amendments
The Tribally Controlled Community College or University Assistance Act of 1978 is further amended—
in section 2(a)(6) (25 U.S.C. 1801(a)(6)), by striking in the field of Indian education
and inserting in the field of Tribal Colleges and Universities and Indian higher education
;
in section 2(b), by striking paragraph (5) and inserting the following:
Eligible credits earned in a continuing education program shall be determined as one credit for every 10 contact hours for institutions on a quarter system, and 15 contact hours for institutions 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 may not exceed 20 percent of an institution’s total Indian student count.
; and
in section 103 (25 U.S.C. 1804), by striking and
at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ; and
, and by inserting after paragraph (3) the following new paragraph:
has been accredited by a nationally recognized accrediting agency or association determined by the Secretary of Education 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.
.
Navajo Community College Act
Section 5(a)(1) of the Navajo Community College Act (25 U.S.C. 640c–1(a)(1)) is amended—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
.
Education Amendments of 1992
Section 1543(d) of the Education Amendments of 1992 (20 U.S.C. 1070 note) is amended—
by striking 1999
and inserting 2005
; and
by striking 4 succeeding
and inserting 5 succeeding
.
Study of student learning outcomes and public accountability
Study required
The Secretary shall provide for the conduct a study of the best practices of States in assessing undergraduate postsecondary student learning, particularly as such practices relate to public accountability systems.
Characteristics of the association
Such study shall be conducted by an association or organization with specific expertise and knowledge in state practices and access to necessary state officials (in this section referred to as the association
). The association responsible for the study under this section shall be a national, non-partisan or bi-partisan entity representing States or State officials with expertise in evaluative and qualitative policy research for best practice models, the capacity to convene experts, and to formulate policy recommendations.
Required subjects of study
In performing the study, the association shall, at a minimum, examine the following:
The current status of institutional and state efforts to embed student learning assessments into the state-level public accountability frameworks.
The extent to which there is commonality among educators and accrediting agencies on learning standards for the associates and bachelors degrees.
The reliability, rigor, and generalizability of available instruments to assess general education at the undergraduate level.
Roles and responsibilities for public accountability for student learning.
Consultation
National committee
The association shall establish and consult with a national committee. The committee shall meet not less than twice a year to review the research, identify best practice models, and review recommendations.
Membership
The national advisory committee shall consist of a representative of the Secretary of Education and individuals with expertise in—
State accountability systems;
student learning assessments;
student flow data;
transitions between K–12 and higher education; and
federal higher education policy.
Additional expertise
The association may augment this committee with other expertise, as appropriate.
Congressional consultation
The association shall consult on a regular basis with the Committee on Education and the Workforce of the House of Representatives and the Committee on Health Education Labor and Pensions of the Senate in carrying out the study required by this section.
Report
The association shall, not later than two years after the date of enactment of this Act, prepare and submit a report on the study required by this section 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.