II
Calendar No. 266
110th CONGRESS
1st Session
S. 1762
IN THE SENATE OF THE UNITED STATES
July 10, 2007
Mr. Kennedy, from the Committee on Health, Education, Labor, and Pensions, reported the following original bill; which was read twice and placed on the calendar
A BILL
To provide for reconciliation pursuant to section 602 of the concurrent resolution on the budget for fiscal year 2008 (S. Con. Res. 21).
Short title; references
Short title
This Act may be cited
as the Higher Education Access Act of
2007
.
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.).
Grants to students in attendance at institutions of higher education
Tuition sensitivity
Amendment
Section 401(b) (20 U.S.C. 1070a(b)) is amended by striking paragraph (3).
Authorization and appropriation of funds
There is authorized to be appropriated, and there is appropriated, out of any money in the Treasury not otherwise appropriated, for the Department of Education to carry out the amendment made by subsection (a), $5,000,000 for fiscal year 2008.
Promise grants
Amendment
Subpart 1 of part A of title IV (20 U.S.C. 1070a et seq.) is amended by adding at the end the following:
Promise grants
Grants
In general
From amounts appropriated under subsection (e) for a fiscal year and subject to subsection (b), the Secretary shall award grants to students in the same manner as the Secretary awards Federal Pell Grants to students under section 401, except that—
at the beginning of each award year, the Secretary shall establish a maximum and minimum award level based on amounts made available under subsection (e);
the Secretary shall only award grants under this section to students eligible for a Federal Pell Grant for the award year; and
when determining eligibility for the awards under this section, the Secretary shall consider only those students who submitted a Free Application for Federal Student Aid or other common reporting form under section 483 as of July 1 of the award year for which the determination is made.
Students with the greatest need
The Secretary shall ensure grants are awarded under this section to students with the greatest need as determined in accordance with section 471.
Cost of Attendance Limitation
A grant awarded under this section for an award year shall be awarded in an amount that does not exceed—
the student’s cost of attendance for the award year; less
an amount equal to the sum of—
the expected family contribution for the student for the award year; and
any Federal Pell Grant award received by the student for the award year.
Supplement Not Supplant
Grants awarded from funds made available under subsection (e) shall be used to supplement, and not supplant, other Federal, State, or institutional grant funds.
Use of Excess Funds
Fifteen percent or less
If, at the end of a fiscal year, the funds available for making grant payments under this section exceed the amount necessary to make the grant payments required under this section to eligible students by 15 percent or less, then all of the excess funds shall remain available for making grant payments under this section during the next succeeding fiscal year.
More than fifteen percent
If, at the end of a fiscal year, the funds available for making grant payments under this section exceed the amount necessary to make the grant payments required under this section to eligible students by more than 15 percent, then all of such funds shall remain available for making such grant payments but grant payments may be made under this paragraph only with respect to awards for that fiscal year.
Authorization and appropriation of funds
In general
There are authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, for the Department of Education to carry out this section—
$2,620,000,000 for fiscal year 2008;
$3,040,000,000 for fiscal year 2009;
$3,460,000,000 for fiscal year 2010;
$3,900,000,000 for fiscal year 2011;
$4,020,000,000 for fiscal year 2012;
$10,000,000 for fiscal year 2013; and
$3,200,000,000 for each of the fiscal years 2014 through 2017.
Availability of funds
Funds appropriated under paragraph (1) for a fiscal year shall remain available through the last day of the fiscal year immediately succeeding the fiscal year for which the funds are appropriated.
.
Effective date
The amendment made by subsection (a) shall take effect on July 1, 2008.
Student loan benefits, terms, and conditions
Deferments
FISL
Section 427(a)(2)(C)(iii) (20 U.S.C.
1077(a)(2)(C)(iii)) is amended by striking 3 years
and inserting
6 years
.
Interest subsidies
Section 428(b)(1)(M)(iv) (20 U.S.C.
1078(b)(1)(M)(iv)) is amended by striking 3 years
and inserting
6 years
.
Direct loans
Section 455(f)(2)(D) (20 U.S.C.
1087e(f)(2)(D)) is amended by striking 3 years
and inserting
6 years
.
Perkins
Section 464(c)(2)(A)(iv) (20 U.S.C.
1087dd(c)(2)(A)(iv)) is amended by striking 3 years
and
inserting 6 years
.
Effective date and applicability
The amendments made by this section shall take effect on July 1, 2008, and shall only apply with respect to the loans made to a borrower of a loan under title IV of the Higher Education Act of 1965 who obtained the borrower's first loan under such title prior to October 1, 2012.
Student loan deferment for certain members of the Armed Forces
Federal Family Education Loans
Section 428(b)(1)(M)(iii) (20 U.S.C. 1078(b)(1)(M)(iii)) is amended—
in the matter
preceding subclause (I), by striking not in excess of 3
years
;
in subclause
(II), by striking ; or
and inserting a comma; and
by adding at the end the following:
and for the 180-day period following the demobilization date for the service described in subclause (I) or (II); or.
Direct loans
Section 455(f)(2)(C) (20 U.S.C. 1087e(f)(2)(C)) is amended—
in the matter
preceding clause (i), by striking not in excess of 3
years
;
in clause (ii),
by striking ; or
and inserting a comma; and
by adding at the end the following:
and for the 180-day period following the demobilization date for the service described in clause (i) or (ii); or.
Perkins loans
Section 464(c)(2)(A)(iii) (20 U.S.C. 1087dd(c)(2)(A)(iii)) is amended—
in the matter
preceding subclause (I), by striking not in excess of 3
years
;
in subclause (II), by striking the semicolon and inserting a comma; and
by adding at the end the following:
and for the 180-day period following the demobilization date for the service described in subclause (I) or (II);.
Applicability
Section
8007(f) of the Higher Education Reconciliation Act of 2005 (20 U.S.C. 1078
note) is amended by striking loans for which
and all that
follows through the period at the end and inserting all loans under
title IV of the Higher Education Act of 1965.
.
Effective date
The amendments made by this section shall take effect on July 1, 2008.
Income-based repayment plans
FFEL
Section 428 (as amended by sections 201(b) and 202(a)) (20 U.S.C. 1078) is further amended—
in subsection (b)—
in paragraph (1)—
in subparagraph
(D), by striking income contingent
and inserting
income-based
; and
in subparagraph
(E)(i), by striking income-sensitive
and inserting
income-based
; and
by striking clause (iii) of paragraph (9)(A) and inserting the following:
an income-based repayment plan, with parallel terms, conditions, and benefits as the income-based repayment plan described in subsections (e) and (d)(1)(D) of section 455, except that—
the plan described in this clause shall not be available to a borrower of an excepted PLUS loan (as defined in section 455(e)(10)) or of a loan made under 428C that includes an excepted PLUS loan;
in lieu of the process of obtaining Federal income tax returns and information from the Internal Revenue Service, as described in section 455(e)(1), the borrower shall provide the lender with a copy of the Federal income tax return and return information for the borrower (and, if applicable, the borrower's spouse) for the purposes described in section 455(e)(1), and the lender shall determine the repayment obligation on the loan, in accordance with the procedures developed by the Secretary;
in lieu of the requirements of section 455(e)(3), in the case of a borrower who chooses to repay a loan made, insured, or guaranteed under this part pursuant to income-based repayment and for whom the adjusted gross income is unavailable or does not reasonably reflect the borrower's current income, the borrower shall provide the lender with other documentation of income that the Secretary has determined is satisfactory for similar borrowers of loans made under part D;
the Secretary shall pay any interest due and not paid for under the repayment schedule described in section 455(e)(4) for a loan made, insured, or guaranteed under this part in the same manner as the Secretary pays any such interest under section 455(e)(6) for a Federal Direct Stafford Loan;
the Secretary shall assume the obligation to repay an outstanding balance of principal and interest due on all loans made, insured, or guaranteed under this part (other than an excepted PLUS Loan or a loan under section 428C that includes an excepted PLUS loan), for a borrower who satisfies the requirements of subparagraphs (A) and (B) of section 455(e)(7), in the same manner as the Secretary cancels such outstanding balance under section 455(e)(7); and
in lieu of the notification requirements under section 455(e)(8), the lender shall notify a borrower of a loan made, insured, or guaranteed under this part who chooses to repay such loan pursuant to income-based repayment of the terms and conditions of such plan, in accordance with the procedures established by the Secretary, including notification that—
the borrower shall be responsible for providing the lender with the information necessary for documentation of the borrower's income, including income information for the borrower's spouse (as applicable); and
if the borrower considers that special circumstances warrant an adjustment, as described in section 455(e)(8)(B), the borrower may contact the lender, and the lender shall determine whether such adjustment is appropriate, in accordance with the criteria established by the Secretary; and
;
in subsection (e)—
in the subsection
heading, by striking Income-sensitive
and inserting
Income-based
;
in paragraph (1)—
by striking
income-sensitive repayment
and inserting income-based
repayment
; and
by inserting
and for the public service loan forgiveness program under section
455(m), in accordance with section 428C(b)(5)
before the semicolon;
and
in paragraphs (2)
and (3), by striking income-sensitive
each place the term occurs
and inserting income-based
; and
in subsection (m)—
in the subsection
heading, by striking Income Contingent
and inserting
Income-Based
;
in paragraph (1),
by striking income contingent repayment plan
and all that
follows through the period at the end and inserting income-based
repayment plan as described in subsection (b)(9)(A)(iii) and section
455(d)(1)(D).
; and
in the paragraph
heading of paragraph (2), by striking income contingent
and inserting
income-based
.
Consolidation loans
Section 428C (20 U.S.C. 1078–3) is amended—
in subsection
(a)(3)(B)(i)(V), by striking for the purposes of obtaining an income
contingent repayment plan,
and inserting for the purpose of
using the public service loan forgiveness program under section
455(m),
;
in subsection (b)(5)—
in the first
sentence, by striking , or is unable to obtain a consolidation loan with
income-sensitive repayment terms acceptable to the borrower from such a
lender,
and inserting , or chooses to obtain a consolidation
loan for the purposes of using the public service loan forgiveness program
offered under section 455(m),
; and
in the second
sentence, by striking income contingent repayment under part D of this
title
and inserting income-based repayment
; and
in subsection (c)—
in paragraph (2)(A)—
in the first
sentence, by striking of graduated or income-sensitive repayment
schedules, established by the lender in accordance with the regulations of the
Secretary.
and inserting of graduated repayment schedules,
established by the lender in accordance with the regulations of the Secretary,
and income-based repayment schedules, established pursuant to regulations by
the Secretary.
; and
in the second
sentence, by striking Except as required
and all that follows
through subsection (b)(5),
and inserting Except as
required by such income-based repayment schedules,
; and
in paragraph
(3)(B), by striking income contingent repayment offered by the Secretary
under subsection (b)(5)
and inserting income-based
repayment
.
Direct loans
Section 455 (as amended by sections 201(c) and 202(b)) (20 U.S.C. 1087e) is further amended—
in subsection (d)—
in paragraph (1)(D)—
by striking
income contingent repayment plan
and inserting
income-based repayment plan
; and
by striking
a Federal Direct PLUS loan
and inserting an excepted PLUS
loan or any Federal Direct Consolidation Loan that includes an excepted PLUS
loan (as defined in subsection (e)(10))
; and
in paragraph
(5)(B), by striking income contingent
and inserting
income-based
; and
in subsection (e)—
in the subsection
heading, by striking Income Contingent
and inserting
Income-based
;
in paragraphs
(1), (2), and (3), by striking income contingent
each place the
term appears and inserting income-based
;
in paragraph (4)—
by striking
Income contingent
and inserting Income-based
;
and
by striking
Secretary.
and
inserting
Secretary, except that the monthly required payment under such schedule shall not exceed 15 percent of the result obtained by calculating the amount by which—
the borrower's adjusted gross income; exceeds
150 percent of the poverty line applicable to the borrower's family size, as determined under section 673(2) of the Community Service Block Grant Act,
divided by 12.;
in paragraph (5),
by striking income contingent
and inserting
income-based
;
by redesignating paragraph (6) as paragraph (8);
by inserting after paragraph (5) the following:
Treatment of interest
In the case of a Federal Direct Stafford Loan, any interest due and not paid for under paragraph (2) shall be paid by the Secretary.
Loan forgiveness
The Secretary shall cancel the obligation to repay an outstanding balance of principal and interest due on all loans made under this part, or assume the obligation to repay an outstanding balance of principal and interest due on all loans made, insured, or guaranteed under part B, (other than an excepted PLUS Loan, or any Federal Direct Consolidation Loan or loan under section 428C that includes an excepted PLUS loan) to a borrower who—
makes the election under this subsection or under section 428(b)(9)(A)(iii); and
for a period of time prescribed by the Secretary not to exceed 25 years (including any period during which the borrower is in deferment due to an economic hardship described in section 435(o)), meets 1 of the following requirements with respect to each payment made during such period:
Has made the payment under this subsection or section 428(b)(9)(A)(iii).
Has made the payment under a standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A).
Has made a payment that counted toward the maximum repayment period under income-sensitive repayment under section 428(b)(9)(A)(iii) or income contingent repayment under section 455(d)(1)(D), as each such section was in effect on June 30, 2008.
Has made a reduced payment of not less than the amount required under subsection (e), pursuant to a forbearance agreement under section 428(c)(3)(A)(i) for a borrower described in 428(c)(3)(A)(i)(II).
;
in the matter
preceding subparagraph (A) of paragraph (8) (as redesignated by subparagraph
(E)), by striking income contingent
and inserting
income-based
; and
by adding at the end the following:
Return to standard repayment
A borrower who is repaying a loan made under this part pursuant to income-based repayment may choose, at any time, to terminate repayment pursuant to income-based repayment and repay such loan under the standard repayment plan.
Definition of excepted PLUS loan
In this subsection, the term excepted PLUS loan means a Federal Direct PLUS loan or a loan under section 428B that is made, insured, or guaranteed on behalf of a dependent student.
.
Conforming amendments and technical corrections
The Act (20 U.S.C. 1001 et seq.) is further amended—
in section 427(a)(2)(H) (20 U.S.C. 1077(a)(2)(H))—
by striking
or income-sensitive
; and
by inserting
or income-based repayment schedule established pursuant to regulations
by the Secretary
before the semicolon at the end; and
in section 455(d)(1)(C) (20 U.S.C.
1087e(d)(1)(C)), by striking 428(b)(9)(A)(v)
and inserting
428(b)(9)(A)(iv)
.
Transition provision
A student who, as of June 30, 2008, elects to repay a loan under part B or part D of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq.) through an income-sensitive repayment plan under section 428(b)(9)(A)(iii) of such Act (20 U.S.C. 1078(b)(9)(A)(iii)) or an income contingent repayment plan under section 455(d)(1)(D) of such Act (20 U.S.C. 1087e(d)(1)(D)) (as each such section was in effect on the day before the date of enactment of this Act) shall have the option to continue repayment under such section (as such section was in effect on such day), or may elect, beginning on July 1, 2008, to use the income-based repayment plan under section 428(b)(9)(A)(iii) or 455(d)(1)(D) (as applicable) of the Higher Education Act of 1965, as amended by this section.
Effective date and applicability
The amendments made by this section shall take effect on July 1, 2008, and shall only apply with respect to a borrower of a loan under title IV of the Higher Education Act of 1965 who obtained the borrower's first loan under such title prior to October 1, 2012.
Federal family education loan program
Reduction of lender insurance percentage
Amendment
Section 428(b)(1)(G) (20 U.S.C. 1078(b)(1)(G)) is amended—
in the matter
preceding clause (i), by striking insures 98 percent
and
inserting insures 97 percent
;
in clause (i), by
inserting and
after the semicolon;
by striking clause (ii); and
by redesignating clause (iii) as clause (ii).
Effective date
The amendment made by subsection (a) shall take effect with respect to loans made on or after October 1, 2007.
Guaranty agency collection retention
Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 1078(c)(6)(A)(ii)) is amended to read as follows:
an amount equal to 24 percent of such payments for use in accordance with section 422B, except that—
beginning October 1, 2003 and ending
September 30, 2007, this subparagraph shall be applied by substituting
23 percent
for 24 percent
; and
beginning October 1, 2007, this
subparagraph shall be applied by substituting 16 percent
for
24
percent
.
.
Elimination of exceptional performer status for lenders
Elimination of status
Part B of title IV (20 U.S.C. 1071 et seq.) is amended by striking section 428I (20 U.S.C. 1078–9).
Conforming amendments
Part B of title IV is further amended—
in section 428(c)(1) (20 U.S.C. 1078(c)(1))—
by striking subparagraph (D); and
by redesignating subparagraphs (E) through (H) as subparagraphs (D) through (G), respectively; and
in section 438(b)(5) (20 U.S.C. 1087–1(b)(5)), by striking the matter following subparagraph (B).
Effective date
The amendments made by subsections (a) and (b) shall take effect on October 1, 2007, except that section 428I of the Higher Education Act of 1965 (as in effect on the day before the date of enactment of this Act) shall apply to eligible lenders that received a designation under subsection (a) of such section prior to October 1, 2007, for the remainder of the year for which the designation was made.
Definitions
Amendments
Section 435 (20 U.S.C. 1085) is amended—
in subsection (o)(1)—
in subparagraph (A)(ii), by striking
100 percent of the poverty line for a family of 2
and inserting
150 percent of the poverty line applicable to the borrower's family
size
; and
in subparagraph
(B)(ii), by striking to a family of two
and inserting to
the borrower's family size
; and
by adding at the end the following:
Eligible not-for-profit holder
Definition of eligible not-for-profit holder
The term eligible not-for-profit holder means an eligible lender under subsection (d) (except for an eligible lender described in subsection (d)(1)(E)) that requests a special allowance payment under section 438(b)(2)(I)(vi)(II) and that is—
a State of the United States, or a political subdivision thereof, or an authority, agency, or other instrumentality thereof (including such entities that are eligible to issue bonds described in section 1.103–1 of title 26, Code of Federal Regulations, or section 144(b) of the Internal Revenue Code of 1986);
an entity described in section 150(d)(2) of such Code that has not made the election described in section 150(d)(3) of such Code;
an entity described in section 501(c)(3) of such Code; or
a trustee acting as an eligible lender on behalf of an entity described in subparagraph (A), (B), or (C),
Prohibition
In the case of a loan for which the special allowance payment is calculated under section 438(b)(2)(I)(vi)(II) and that is sold by the eligible not-for-profit holder holding the loan to a for-profit entity or to an entity that is not an eligible not-for-profit holder, the special allowance payment for such loan shall, beginning on the date of the sale, no longer be calculated under section 438(b)(2)(I)(vi)(II) and shall be calculated under section 438(b)(2)(I)(vi)(I) instead.
Regulations
Not later than 1 year after the date of enactment of the Higher Education Access Act of 2007, the Secretary shall promulgate regulations in accordance with the provisions of this subsection.
.
Applicability
The amendment made by subsection (a)(1) shall only apply with respect to any borrower of a loan under title IV of the Higher Education Act of 1965 who obtained the borrower's first loan under such title prior to October 1, 2012.
Special allowances
Reduction of lender special allowance payments
Section 438(b)(2)(I) (20 U.S.C. 1087–1(b)(2)(I)) is amended—
in clause (i), by
striking (iii), and (iv)
and inserting (iii), (iv), and
(vi)
; and
by adding at the end the following:
Reduction for loans disbursed on or after October 1, 2007
With respect to a loan on which the applicable interest rate is determined under section 427A(l) and for which the first disbursement of principal is made on or after October 1, 2007, the special allowance payment computed pursuant to this subparagraph shall be computed—
for loans held by an eligible lender not described in subclause (II)—
by substituting
1.24 percent
for 1.74 percent
in clause
(ii);
by substituting
1.84 percent
for 2.34 percent
each place the term
appears in this subparagraph;
by substituting
1.84 percent
for 2.64 percent
in clause (iii);
and
by substituting
2.14 percent
for 2.64 percent
in clause (iv);
and
for loans held by an eligible not-for-profit holder—
by substituting
1.99 percent
for 2.34 percent
each place the term
appears in this subparagraph;
by substituting
1.39 percent
for 1.74 percent
in clause
(ii);
by substituting
1.99 percent
for 2.64 percent
in clause (iii);
and
by substituting
2.29 percent
for 2.64 percent
in clause
(iv).
.
Increased loan fees from lenders
Paragraph (2) of section 438(d) (20 U.S.C. 1087–1(d)(2)) is amended to read as follows:
Amount of loan fees
The amount of the loan fee which shall be deducted under paragraph (1), but which may not be collected from the borrower, shall be equal to 1.0 percent of the principal amount of the loan with respect to any loan under this part for which the first disbursement was made on or after October 1, 2007.
.
William D. Ford Federal direct loan program
Loan forgiveness for public service employees
Section 455 (as amended by sections 201(c), 202(b), and 203(c)) (20 U.S.C. 1087e) is further amended by adding at the end the following:
Repayment plan for public service employees
In general
The Secretary shall cancel the balance of interest and principal due, in accordance with paragraph (2), on any eligible Federal Direct Loan not in default for an eligible borrower who—
has made 120 monthly payments on the Federal Direct Loan after October 1, 2007, pursuant to any combination of—
payments under an income-based repayment plan under section 455(d)(1)(D);
payments under a standard repayment plan under section 455(d)(1)(A); or
monthly payments under a repayment plan under section 455(d)(1) of not less than the monthly amount calculated under section 455(d)(1)(A); and
is employed in a public service job at the time of such forgiveness; and
has been employed in a public service job during the period in which the borrower makes each of the 120 payments described in subparagraph (A).
Loan cancellation amount
After the conclusion of the employment period described in paragraph (1), the Secretary shall cancel the obligation to repay, for each year during such period described in paragraph (1)(B)(ii) for which the eligible borrower submits documentation to the Secretary that the borrower's annual adjusted gross income or annual earnings were less than or equal to $65,000, 1/10 of the amount of the balance of principal and interest due as of the time of such cancellation, on the eligible Federal Direct Loans made to the borrower under this part.
Definitions
In this subsection:
Eligible borrower
The term eligible borrower means a borrower who submits documentation to the Secretary that the borrower's annual adjusted gross income or annual earnings is less than or equal to $65,000.
Eligible Federal Direct Loan
The term eligible Federal Direct Loan means a Federal Direct Stafford Loan, Federal Direct PLUS Loan, Federal Direct Unsubsidized Loan, or a Federal Direct Consolidation Loan if such consolidation loan was obtained by the borrower under section 428C(b)(5) or in accordance with section 428C(a)(3)(B)(i)(V).
Public service job
In this paragraph, the term public service job means—
a full-time job in public emergency management, government, public safety, public law enforcement, public health, public education, public early childhood education, public child care, social work in a public child or family service agency, public services for individuals with disabilities, public services for the elderly, public interest legal services (including prosecution or public defense), public library sciences, public school library sciences, or other public school-based services; or
teaching as a full-time faculty member at a Tribal College or University as defined in section 316(b).
.
Unit cost calculation for guaranty agency account maintenance fees
Section 458(b) (20 U.S.C. 1087h(b)) is amended—
by striking
Account
and inserting the following:
For fiscal years 2006 and 2007
For each of the fiscal years 2006 and 2007, account
; and
by adding at the end the following:
For fiscal year 2008 and succeeding fiscal years
In general
For fiscal year 2008 and each succeeding fiscal year, the Secretary shall calculate the account maintenance fees payable to guaranty agencies under subsection (a)(3), on a per-loan cost basis in accordance with subparagraph (B).
Amount determination
To determine the amount that shall be paid under subsection (a)(3) per outstanding loan guaranteed by a guaranty agency for fiscal year 2008 and succeeding fiscal years, the Secretary shall—
establish the per-loan cost basis amount by dividing the total amount of account maintenance fees paid under subsection (a)(3) for fiscal year 2006 by the number of loans under part B that were outstanding for that fiscal year; and
for subsequent fiscal years, adjust the amount determined under clause (i) as the Secretary determines necessary to account for inflation.
.
Federal Perkins Loans
Distribution of late collections
Section
466(b) (20 U.S.C. 1087ff(b)) is amended by striking March 31,
2012
and inserting September 30, 2012
.
Need analysis
Support for working students
Dependent Students
Subparagraph (D) of section 475(g)(2) (20 U.S.C. 1087oo(g)(2)(D)) is amended to read as follows:
an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under section 478):
for academic year 2009–2010, $3,750;
for academic year 2010–2011, $4,500;
for academic year 2011–2012, $5,250; and
for academic year 2012–2013, $6,000;
.
Independent Students Without Dependents Other Than a Spouse
Clause (iv) of section 476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read as follows:
an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under section 478):
for single or separated students, or married students where both are enrolled pursuant to subsection (a)(2)—
for academic year 2009–2010, $7,000;
for academic year 2010–2011, $7,780;
for academic year 2011–2012, $8,550; and
for academic year 2012–2013, $9,330; and
for married students where 1 is enrolled pursuant to subsection (a)(2)—
for academic year 2009–2010, $11,220;
for academic year 2010–2011, $12,460;
for academic year 2011–2012, $13,710; and
for academic year 2012–2013, $14,960;
.
Independent Students With Dependents Other Than a Spouse
Paragraph (4) of section 477(b) (20 U.S.C. 1087qq(b)(4)) is amended to read as follows:
Income protection allowance
The income protection allowance is determined by the tables described in subparagraphs (A) through (D) (or a successor table prescribed by the Secretary under section 478).
Academic year 2009–2010
For academic year 2009–2010, the income protection allowance is determined by the following table:
| Family Size | Number in College | ||||
| 1 | 2 | 3 | 4 | 5 | |
| NOTE: For each
additional family member, add $4,240. For each additional college student, subtract $3,020. |
|||||
| 2 | $17,720 | $14,690 | |||
| 3 | 22,060 | 19,050 | $16,020 | ||
| 4 | 27,250 | 24,220 | 21,210 | $18,170 | |
| 5 | 32,150 | 29,120 | 26,100 | 23,070 | $20,060 |
| 6 | 37,600 | 34,570 | 31,570 | 28,520 | 25,520 |
Academic year 2010–2011
For academic year 2010–2011, the income protection allowance is determined by the following table:
| Family Size | Number in College | ||||
| 1 | 2 | 3 | 4 | 5 | |
| NOTE: For each
additional family member, add $4,710. For each additional college student, subtract $3,350. |
|||||
| 2 | $19,690 | $16,330 | |||
| 3 | 24,510 | 21,160 | $17,800 | ||
| 4 | 30,280 | 26,910 | 23,560 | $20,190 | |
| 5 | 35,730 | 32,350 | 29,000 | 25,640 | $22,290 |
| 6 | 41,780 | 38,410 | 35,080 | 31,690 | 28,350 |
Academic year 2011–2012
For academic year 2011–2012, the income protection allowance is determined by the following table:
| Family Size | Number in College | ||||
| 1 | 2 | 3 | 4 | 5 | |
| NOTE: For each
additional family member, add $5,180. For each additional college student, subtract $3,690. |
|||||
| 2 | $21,660 | $17,960 | |||
| 3 | 26,960 | 23,280 | $19,580 | ||
| 4 | 33,300 | 29,600 | 25,920 | $22,210 | |
| 5 | 39,300 | 35,590 | 31,900 | 28,200 | $24,520 |
| 6 | 45,950 | 42,250 | 38,580 | 34,860 | 31,190 |
Academic year 2012–2013
For academic year 2012–2013, the income protection allowance is determined by the following table:
| Family Size | Number in College | ||||
| 1 | 2 | 3 | 4 | 5 | |
| NOTE: For each
additional family member, add $5,660. For each additional college student, subtract $4,020. |
|||||
| 2 | $23,630 | $19,590 | |||
| 3 | 29,420 | 25,400 | $21,360 | ||
| 4 | 36,330 | 32,300 | 28,280 | $24,230 | |
| 5 | 42,870 | 38,820 | 34,800 | 30,770 | $26,750 |
| 6 | 50,130 | 46,100 | 42,090 | 38,030 | 34,020 |
.
Updated tables and amounts
Section 478(b) (20 U.S.C. 1087rr(b)) is amended—
by striking paragraph (1) and inserting the following:
Revised tables
In general
For each academic year after academic year 2008–2009, the Secretary shall publish in the Federal Register a revised table of income protection allowances for the purpose of such sections, subject to subparagraphs (B) and (C).
Table for independent students
Academic years 2009–2010 through 2012–2013
For each of the academic years 2009–2010 through 2012–2013, the Secretary shall not develop a revised table of income protection allowances under section 477(b)(4) and the table specified for such academic year under subparagraphs (A) through (D) of such section shall apply.
Other academic years
For each academic year after academic year 2012–2013, the Secretary shall develop the revised table of income protection allowances by increasing each of the dollar amounts contained in the table of income protection allowances under section 477(b)(4)(D) by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 2011 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.
Table for parents
For each academic year after academic year 2008–2009, the Secretary shall develop the revised table of income protection allowances under section 475(c)(4) by increasing each of the dollar amounts contained in the table by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 1992 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.
; and
in paragraph (2),
by striking shall be developed
and all that follows through the
period at the end and inserting shall be developed for each academic
year after academic year 2012–2013, by increasing each of the dollar amounts
contained in such section for academic year 2012–2013 by a percentage equal to
the estimated percentage increase in the Consumer Price Index (as determined by
the Secretary) between December 2011 and the December next preceding the
beginning of such academic year, and rounding the result to the nearest
$10.
.
Effective date
The amendments made by this section shall take effect on July 1, 2009.
Automatic zero improvements
In general
Section 479(c) (20 U.S.C. 1087ss(c)) is amended—
in paragraph
(1)(B), by striking 20,000
and inserting $30,000
;
and
in paragraph
(2)(B), by striking $20,000
and inserting
$30,000
.
Effective date
The amendments made by this section shall take effect on July 1, 2009.
Discretion of student financial aid administrators
The third sentence of section 479A(a) (20 U.S.C. 1087tt(a)) is amended—
by inserting
or an independent student
after family member
;
and
by inserting
a change in housing status that results in homelessness (as defined in
section 103 of the McKinney-Vento Homeless Assistance Act),
after
under section 487,
.
Definitions
In general
Section 480 (20 U.S.C. 1087vv) is amended—
in subsection (a)(2)—
by striking
and no portion
and inserting no portion
;
and
by inserting
and no distribution from any qualified education benefit described in
subsection (f)(3) that is not subject to Federal income tax,
after
1986,
;
in subsection (d)—
by redesignating paragraphs (1), (2), (3) through (6), and (7) as subparagraphs (A), (B), (D) through (G), and (I), respectively, and indenting appropriately;
by striking
Independent
student.—The term
and
inserting
Independent student.—
Definition
The term
;
by striking subparagraph (B) (as redesignated by subparagraph (A)) and inserting the following:
is an orphan, in foster care, or a ward of the court, or was in foster care or a ward of the court until the individual reached the age of 18;
is an emancipated minor or is in legal guardianship as determined by a court of competent jurisdiction in the individual’s State of legal residence;
;
in subparagraph
(G) (as redesignated by subparagraph (A)), by striking or
after
the semicolon;
by inserting after subparagraph (G) (as redesignated by subparagraph (A)) the following:
has been verified as an unaccompanied youth who is a homeless child or youth (as such terms are defined in section 725 of the McKinney-Vento Homeless Assistance Act) during the school year in which the application is submitted, by—
a local educational agency homeless liaison, designated pursuant to section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance Act;
the director of a program funded under the Runaway and Homeless Youth Act or a designee of the director; or
the director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act (relating to emergency shelter grants) or a designee of the director; or
; and
by adding at the end the following:
Simplifying the dependency override process
A financial aid administrator may make a determination of independence under paragraph (1)(I) based upon a documented determination of independence that was previously made by another financial aid administrator under such paragraph in the same award year.
;
in subsection (e)—
in paragraph (3), by striking
and
after the semicolon;
in paragraph (4),
by striking the period at the end and inserting ; and
;
and
by adding at the end the following:
special combat pay.
;
in subsection (f), by striking paragraph (3) and inserting the following:
A qualified education benefit shall be considered an asset of—
the student if the student is an independent student; or
the parent if the student is a dependent student, regardless of whether the owner of the account is the student or the parent.
;
in subsection (j)—
in paragraph (2),
by inserting , or a distribution that is not includable in gross income
under section 529 of such Code, under another prepaid tuition plan offered by a
State, or under a Coverdell education savings account under section 530 of such
Code,
after 1986
; and
by adding at the end the following:
Notwithstanding paragraph (1), special combat pay shall not be treated as estimated financial assistance for purposes of section 471(3).
; and
by adding at the end the following:
Special combat pay
The term special combat pay means pay received by a member of the Armed Forces because of exposure to a hazardous situation.
.
Authorization and appropriations
There are authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, $10,000,000 for fiscal year 2008 for the Department of Education to pay the estimated increase in costs in the Federal Pell Grant program under section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) resulting from the amendments made by sections 603 and 604 for award year 2007–2008.
General provisions relating to student assistance
Student eligibility
Amendments
Section 484(r) (20 U.S.C. 1091(r)) is amended—
in the table in
paragraph (1), by inserting while such student is enrolled in an
institution of higher education and receiving financial assistance under this
title
after of a controlled substance
each place the
term appears;
by redesignating paragraph (3) as paragraph (4); and
by inserting after paragraph (2) the following:
Interaction with FAFSA
The Secretary shall not require a student to provide information regarding the student's possession or sale of a controlled substance on the Free Application for Federal Student Aid (FAFSA) or any other common financial reporting form described in section 483(a).
.
Authorization and appropriations
There are authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, $5,000,000 for fiscal year 2008 for the Department of Education to pay the estimated increase in costs in the Federal Pell Grant program under section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) resulting from the amendments made by subsection (a) for award year 2007–2008.
Miscellaneous
Competitive loan auction pilot program
Title IV (20 U.S.C. 1070 et seq.) is further amended by adding at the end the following:
Competitive loan auction pilot program; State grant program
Competitive loan auction pilot program
Definitions
In this section:
Eligible Federal PLUS Loan
The term eligible Federal PLUS Loan means a loan described in section 428B made to a parent of a dependent student.
Eligible lender
The term eligible lender has the meaning given the term in section 435.
Pilot program
The Secretary shall carry out a pilot program under which the Secretary establishes a mechanism for an auction of eligible Federal PLUS Loans in accordance with this subsection. The pilot program shall meet the following requirements:
Planning and implementation
During the period beginning on the date of enactment of this section and ending on June 30, 2009, the Secretary shall plan and implement the pilot program under this subsection.
Origination and disbursement; applicability of section 428B
Beginning on July 1, 2009, the Secretary shall arrange for the origination and disbursement of all eligible Federal PLUS Loans in accordance with the provisions of this subsection and the provisions of section 428B that are not inconsistent with this subsection.
Loan origination mechanism
The Secretary shall establish a loan origination auction mechanism that meets the following requirements:
Auction
The Secretary administers an auction under this paragraph for each State under which eligible lenders compete to originate eligible Federal PLUS Loans under this paragraph at all institutions of higher education within the State.
Prequalification process
The Secretary establishes a prequalification process for eligible lenders desiring to participate in an auction under this paragraph that contains, at a minimum—
a set of borrower benefits and servicing requirements each eligible lender shall meet in order to participate in such an auction; and
an assessment of each such eligible lender's capacity, including capital capacity, to participate effectively.
Timing and origination
Each State auction takes place every 2 years, and the eligible lenders with the winning bids for the State are the only eligible lenders permitted to originate eligible Federal PLUS Loans made under this paragraph for the cohort of students at the institutions of higher education within the State until the students graduate from or leave the institutions of higher education.
Bids
Each eligible lender's bid consists of the amount of the special allowance payment (including the recapture of excess interest) the eligible lender proposes to accept from the Secretary with respect to the eligible Federal PLUS Loans made under this paragraph in lieu of the amount determined under section 438(b)(2)(I).
Maximum bid
The maximum bid allowable under this paragraph shall not
exceed the amount of the special allowance payable on eligible Federal PLUS
Loans made under this paragraph computed under section 438(b)(2)(I) (other than
clauses (ii), (iii), (iv), and (vi) of such section), except that for purposes
of the computation under this subparagraph, section 438(b)(2)(I)(i)(III) shall
be applied by substituting 1.74 percent
for 2.34
percent
.
Winning bids
The winning bids for each State auction shall be the 2 bids containing the lowest and the second lowest proposed special allowance payments, subject to subparagraph (E).
Agreement with Secretary
Each eligible lender having a winning bid under subparagraph (F) enters into an agreement with the Secretary under which the eligible lender—
agrees to originate eligible Federal PLUS Loans under this paragraph to each borrower who—
seeks an eligible Federal PLUS Loan under this paragraph to enable a dependent student to attend an institution of higher education within the State;
is eligible for an eligible Federal PLUS Loan; and
elects to borrow from the eligible lender; and
agrees to accept a special allowance payment (including the recapture of excess interest) from the Secretary with respect to the eligible Federal PLUS Loans originated under clause (i) in the amount proposed in the second lowest winning bid described in subparagraph (F) for the applicable State auction.
Sealed bids; confidentiality
All bids are sealed and the Secretary keeps the bids confidential, including following the announcement of the winning bids.
Eligible lender of last resort
In general
In the event that there is no winning bid under subparagraph (F), the students at the institutions of higher education within the State that was the subject of the auction shall be served by an eligible lender of last resort, as determined by the Secretary.
Determination of eligible lender of last resort
Prior to the start of any auction under this paragraph, eligible lenders that desire to serve as an eligible lender of last resort shall submit an application to the Secretary at such time and in such manner as the Secretary may determine. Such application shall include an assurance that the eligible lender will meet the prequalification requirements described in subparagraph (B).
Geographic location
The Secretary shall identify an eligible lender of last resort for each State.
Notification timing
The Secretary shall not identify any eligible lender of last resort until after the announcement of all the winning bids for a State auction for any year.
Guarantee against losses
The Secretary guarantees the eligible Federal PLUS Loans made under this paragraph against losses resulting from the default of a parent borrower in an amount equal to 99 percent of the unpaid principal and interest due on the loan.
Loan fees
The Secretary shall not collect a loan fee under section 438(d) with respect to an eligible Federal Plus Loan originated under this paragraph.
Consolidation
In general
An eligible lender who is permitted to originate eligible Federal PLUS Loans for a borrower under this paragraph shall have the option to consolidate such loans into 1 loan.
Notification
In the event a borrower with eligible Federal PLUS Loans made under this paragraph wishes to consolidate the loans, the borrower shall notify the eligible lender who originated the loans under this paragraph.
Limitation on eligible lender option to consolidate
The option described in clause (i) shall not apply if—
the borrower includes in the notification in clause (ii) verification of consolidation terms and conditions offered by an eligible lender other than the eligible lender described in clause (i); and
not later than 10 days after receiving such notification from the borrower, the eligible lender described in clause (i) does not agree to match such terms and conditions, or provide more favorable terms and conditions to such borrower than the offered terms and conditions described in subclause (I).
Consolidation of additional loans
If a borrower has a Federal Direct PLUS Loan or a loan made on behalf of a dependent student under section 428B and seeks to consolidate such loan with an eligible Federal PLUS Loan made under this paragraph, then the eligible lender that originated the borrower's loan under this paragraph may include in the consolidation under this subparagraph a Federal Direct PLUS Loan or a loan made on behalf of a dependent student under section 428B, but only if—
in the case of a Federal Direct PLUS Loan, the eligible lender agrees, not later than 10 days after the borrower requests such consolidation from the lender, to match the consolidation terms and conditions that would otherwise be available to the borrower if the borrower consolidated such loans in the loan program under part D; or
in the case of a loan made on behalf of a dependent student under section 428B, the eligible lender agrees, not later than 10 days after the borrower requests such consolidation from the lender, to match the consolidation terms and conditions offered by an eligible lender other than the eligible lender that originated the borrower’s loans under this paragraph.
Special allowance on consolidation loans that include loans made under this paragraph
The applicable special allowance payment for loans consolidated under this paragraph shall be equal to the lesser of—
the weighted average of the special allowance payment on such loans, except that such weighted average shall exclude the special allowance payment for any Federal Direct PLUS Loan included in the consolidation; or
the result of—
the average of the bond equivalent rates of the quotes of the 3-month commercial paper (financial) rates in effect for each of the days in such quarter as reported by the Federal Reserve in Publication H–15 (or its successor) for such 3-month period; plus
1.59 percent.
Interest payment rebate fee
Any loan under section 428C consolidated under this paragraph shall not be subject to the interest payment rebate fee under section 428C(f).
College access partnership grant program
Purpose
It is the purpose of this subsection to make payments to States to assist the States in carrying out the activities and services described in paragraph (7) in order to increase access to higher education for students in the State.
Authorization and appropriations
There are authorized to be appropriated, and there are appropriated, $25,000,000 for each of the fiscal years 2008 and 2009 to carry out this subsection.
Program authorized
Grants authorized
From amounts appropriated under paragraph (2), the Secretary shall award grants, from allotments under paragraph (4), to States having applications approved under paragraph (5), to enable the State to pay the Federal share of the costs of carrying out the activities and services described in paragraph (7).
Federal share; non-Federal share
Federal share
The amount of the Federal share under this subsection for a fiscal year shall be equal to 2/3 of the costs of the activities and services described in paragraph (7).
Non-Federal share
The amount of the non-Federal share under this subsection shall be equal to 1/3 of the costs of the activities and services described in paragraph (7). The non-Federal share may be in cash or in-kind, and may be provided from a combination of State resources and contributions from private organizations in the State.
Reduction for failure to pay non-Federal share
If a State fails to provide the full non-Federal share required under this paragraph, the Secretary shall reduce the amount of the grant payment under this subsection proportionately.
Temporary ineligibility for subsequent payments
In general
The Secretary shall determine a State to be temporarily ineligible to receive a grant payment under this subsection for a fiscal year if—
the State fails to submit an annual report pursuant to paragraph (9) for the preceding fiscal year; or
the Secretary determines, based on information in such annual report, that the State is not effectively meeting the conditions described under paragraph (8) and the goals of the application under paragraph (5).
Reinstatement
If the Secretary determines a State is ineligible under clause (i), the Secretary may enter into an agreement with the State setting forth the terms and conditions under which the State may regain eligibility to receive payments under this subsection.
Determination of allotment
Amount of allotment
Subject to subparagraph (B), in making grant payments to States under this subsection, the allotment to each State for a fiscal year shall be equal to the sum of—
the amount that bears the same relation to 50 percent of the amount appropriated under paragraph (2) for such fiscal year as the number of residents in the State aged 5 through 17 who are living below the poverty line applicable to the resident's family size (as determined under section 673(2) of the Community Service Block Grant Act) bears to the total number of such residents in all States; and
the amount that bears the same relation to 50 percent of the amount appropriated under paragraph (2) for such fiscal year as the number of residents in the State aged 15 through 44 who are living below the poverty line applicable to the individual's family size (as determined under section 673(2) of the Community Service Block Grant Act) bears to the total number of such residents in all States.
Minimum amount
No State shall receive an allotment under this subsection for a fiscal year in an amount that is less than 1/2 of 1 percent of the total amount appropriated under paragraph (2) for such fiscal year.
Submission and contents of application
In general
For each fiscal year for which a State desires a grant payment under paragraph (3), the State agency with jurisdiction over higher education, or another agency designated by the Governor of the State to administer the program under this subsection, shall submit an application to the Secretary at such time, in such manner, and containing the information described in subparagraph (B).
Application
An application submitted under subparagraph (A) shall include the following:
A description of the State’s capacity to administer the grant under this subsection and report annually to the Secretary on the activities and services described in paragraph (7).
A description of the State’s plan for using the grant funds to meet the requirements of paragraphs (7) and (8), including plans for how the State will make special efforts to provide such benefits to students in the State that are underrepresented in postsecondary education.
A description of how the State will provide or coordinate the non-Federal share from State and private funds, if applicable.
A description of the existing structure that the State has in place to administer the activities and services under paragraph (7) or the plan to develop such administrative capacity.
Payment to eligible nonprofit organizations
A State receiving a payment under this subsection may elect to make a payment to 1 or more eligible nonprofit organizations, including an eligible not-for-profit holder (as defined in section 438(p)), or a partnership of such organizations, in the State in order to carry out activities or services described in paragraph (7), if the eligible nonprofit organization or partnership—
was in existence on the day before the date of enactment of the Higher Education Access Act of 2007; and
as of the day of such payment, is participating in activities and services related to increasing access to higher education, such as those activities and services described in paragraph (7).
Allowable uses
In general
Subject to subparagraph (C), a State may use a grant payment under this subsection only for the following activities and services, pursuant to the conditions under paragraph (8):
Information for students and families regarding—
the benefits of a postsecondary education;
postsecondary education opportunities;
planning for postsecondary education; and
career preparation.
Information on financing options for postsecondary education and activities that promote financial literacy and debt management among students and families.
Outreach activities for students who may be at risk of not enrolling in or completing postsecondary education.
Assistance in completion of the Free Application for Federal Student Aid or other common financial reporting form under section 483(a).
Need-based grant aid for students.
Professional development for guidance counselors at middle schools and secondary schools, and financial aid administrators and college admissions counselors at institutions of higher education, to improve such individuals’ capacity to assist students and parents with—
understanding—
entrance requirements for admission to institutions of higher education; and
State eligibility requirements for Academic Competitiveness Grants or National SMART Grants under section 401A, and other financial assistance that is dependent upon a student's coursework;
applying to institutions of higher education;
applying for Federal student financial assistance and other State, local, and private student financial assistance and scholarships;
activities that increase students’ ability to successfully complete the coursework required for a postsecondary degree, including activities such as tutoring or mentoring; and
activities to improve secondary school students' preparedness for postsecondary entrance examinations.
Student loan cancellation or repayment (as applicable), or interest rate reductions, for borrowers who are employed in a high-need geographical area or a high-need profession in the State, as determined by the State.
Prohibited uses
Funds made available under this subsection shall not be used to promote any lender's loans.
Use of funds for administrative purposes
A State may use not more than 2 percent of the total amount of the Federal share and non-Federal share provided under this subsection for administrative purposes relating to the grant under this subsection.
Special conditions
Availability to students and families
A State receiving a grant payment under this subsection shall—
make the activities and services described in clauses (i) through (vi) of paragraph (7)(A) that are funded under the payment available to all qualifying students and families in the State;
allow students and families to participate in the activities and services without regard to—
the postsecondary institution in which the student enrolls;
the type of student loan the student receives;
the servicer of such loan; or
the student's academic performance;
not charge any student or parent a fee or additional charge to participate in the activities or services; and
in the case of an activity providing grant aid, not require a student to meet any condition other than eligibility for Federal financial assistance under this title, except as provided for in the loan cancellation or repayment or interest rate reductions described in paragraph (7)(A)(vii).
Priority
A State receiving a grant payment under this subsection shall, in carrying out any activity or service described in paragraph (7)(A) with the grant funds, prioritize students and families who are living below the poverty line applicable to the individual's family size (as determined under section 673(2) of the Community Service Block Grant Act).
Disclosures
Organizational disclosures
In the case of a State that has chosen to make a payment to an eligible not-for-profit holder in the State in accordance with paragraph (6), the holder shall clearly and prominently indicate the name of the holder and the nature of its work in connection with any of the activities carried out, or any information or services provided, with such funds.
Informational disclosures
Any information about financing options for higher education provided through an activity or service funded under this subsection shall—
include information to students and the students' parents of the availability of Federal, State, local, institutional, and other grants and loans for postsecondary education; and
present information on financial assistance for postsecondary education that is not provided under this title in a manner that is clearly distinct from information on student financial assistance under this title.
Coordination
A State receiving a grant payment under this subsection shall attempt to coordinate the activities carried out with the payment with any existing activities that are similar to such activities, and with any other entities that support the existing activities in the State.
Report
A State receiving a payment under this subsection shall prepare and submit an annual report to the Secretary on the program under this subsection and on the implementation of the activities and services described in paragraph (7). The report shall include—
each activity or service that was provided to students and families over the course of the year;
the cost of providing each activity or service;
the number, and percentage, if feasible and applicable, of students who received each activity or service; and
the total contributions from private organizations included in the State's non-Federal share for the fiscal year.
Sunset
The authority provided to carry out this subsection shall expire on September 30, 2009.
Financial literacy program established
Definition of eligible entity
In this subsection, the term eligible entity means a nonprofit or for-profit organization, or a consortium of such organizations, with a demonstrated record of effectiveness in providing financial literacy services to students at the secondary and postsecondary level.
Program established
From amounts appropriated under paragraph (6), the Secretary shall award grants to eligible entities to enable the eligible entities to increase the financial literacy of students who are enrolled or will enroll in an institution of higher education, including providing instruction to students on topics such as the understanding of loan terms and conditions, the calculation of interest rates, refinancing of debt, debt management, and future savings for education, health care and long-term care, and retirement.
Grant period; renewability
Each grant under this subsection shall be awarded for one 5-year period, and may not be renewed.
Matching requirements
Each eligible entity that receives a grant under this subsection shall provide, from non-Federal sources, an amount (which may be provided in cash or in kind) to carry out the activities supported by the grant equal to 100 percent of the amount received under the grant.
Applications
An eligible entity desiring a grant under this subsection shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require. Such application shall include the following:
A detailed description of the eligible entity’s plans for providing financial literacy activities and the students and schools the grant will target.
The eligible entity’s plan for using the matching grant funds, including how the funds will be used to provide financial literacy programs to students.
A plan to ensure the viability of the work of the eligible entity beyond the grant period.
A detailed description of the activities that carry out this subsection and that are conducted by the eligible entity at the time of the application, and how the matching grant funds will assist the eligible entity with expanding and enhancing such activities.
A description of the strategies that will be used to target activities under the grant to students in secondary school and enrolled in institutions of higher education who are historically underrepresented in institutions of higher education and who may benefit from the activities of the eligible entity.
Authorization and appropriations
There are authorized to be appropriated, and there are appropriated, $10,000,000 for each of the fiscal years 2008 and 2009 to carry out this subsection.
Secondary school graduation and college enrollment program
Definitions
In this subsection:
Eligible local educational agency
In general
The term eligible local educational agency means a local educational agency with a secondary school graduation rate of 70 percent or less—
in the aggregate; or
applicable to 2 or more subgroups of secondary school students served by the local educational agency that are described in clause (ii).
Subgroups
A subgroup referred to in clause (i)(II) is—
a subgroup of economically disadvantaged students; or
a subgroup of students from a major racial or ethnic group.
Eligible entity
The term eligible entity means a consortium of a nonprofit organization and an institution of higher education with a demonstrated record of effectiveness in raising secondary school graduation rates and postsecondary enrollment rates.
Program established
From amounts appropriated under paragraph (7), the Secretary shall award grants to eligible entities to enable the eligible entities to carry out activities that—
create models of excellence for academically rigorous secondary schools, including early college secondary schools;
increase secondary school graduation rates;
raise the rate of students who enroll in an institution of higher education;
improve instruction and access to supports for struggling secondary school students;
create, implement, and utilize early warning systems to help identify students at risk of dropping out of secondary school; and
improve communication between parents, students, and schools concerning requirements for secondary school graduation, postsecondary education enrollment, and financial assistance available for attending postsecondary education.
Use of funds
An eligible entity that receives a grant under this subsection shall use the funds—
to implement a college-preparatory curriculum for all students in a secondary school served by the eligible local educational agency that is, at a minimum, aligned with a rigorous secondary school program of study;
to implement accelerated academic catch-up programs, for students who enter secondary school not meeting the proficient levels of student academic achievement on the State academic assessments for mathematics, reading or language arts, or science under section 1111(b)(3) of the Elementary and Secondary Education Act of 1965, that enable such students to meet the proficient levels of achievement and remain on track to graduate from secondary school on time with a regular secondary school diploma;
to implement an early warning system to quickly identify students at risk of dropping out of secondary school, including systems that track student absenteeism; and
to implement a comprehensive postsecondary education guidance program that—
will ensure that all students are regularly notified throughout the students' time in secondary school of secondary school graduation requirements and postsecondary education entrance requirements; and
provides guidance and assistance to students in applying to an institution of higher education and in applying for Federal financial assistance and other State, local, and private financial assistance and scholarships.
Grant period; renewability
Each grant under this subsection shall be awarded for one 5-year period, and may not be renewed.
Matching requirements
Each eligible entity that receives a grant under this subsection shall provide, from non-Federal sources, an amount (which may be provided in cash or in-kind) to carry out the activities supported by the grant equal to 100 percent of the amount received under the grant.
Applications
An eligible entity desiring a grant under this subsection shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require.
Authorization and appropriations
There are authorized to be appropriated, and there are appropriated, $25,000,000 for each of the fiscal years 2008 and 2009 to carry out this subsection.
.
July 10, 2007
Read twice and placed on the calendar