[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4595 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4595
To improve the structure of the Federal Pell Grant program, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 20, 2024
Ms. Hirono (for herself, Mrs. Murray, Mr. Reed, Mr. Whitehouse, Mr.
Padilla, Mr. Kaine, Mr. Van Hollen, Mr. Booker, Ms. Warren, Mr. Durbin,
Mr. Bennet, Ms. Duckworth, Mr. Welch, Mrs. Shaheen, Mr. Wyden, Mr.
Cardin, Mr. Casey, Ms. Hassan, Mr. Blumenthal, Mrs. Gillibrand, Mr.
Warnock, Mr. Heinrich, Ms. Butler, Ms. Klobuchar, Mr. Coons, Mr. Brown,
Mr. Fetterman, Ms. Baldwin, Mr. Merkley, Mr. Markey, Mr. Murphy, Mr.
Ossoff, and Ms. Smith) introduced the following bill; which was read
twice and referred to the Committee on Health, Education, Labor, and
Pensions
_______________________________________________________________________
A BILL
To improve the structure of the Federal Pell Grant program, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pell Grant Preservation and
Expansion Act of 2024''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The United States needs individuals with the knowledge,
skills, and abilities that enable them to thrive as educated
citizens in society and successfully participate in an
interconnected economy.
(2) Investments in higher education through student aid
such as the Federal Pell Grant program under section 401 of the
Higher Education Act of 1965 (20 U.S.C. 1070a) help students
and families reach, afford, and complete education and training
opportunities beyond high school.
(3) The Federal Pell Grant program is the largest source of
federally funded grant aid for postsecondary education.
(4) The Federal Pell Grant program allows millions of
people of the United States to attend college and is especially
vital for students of color. Three in 5 African American
undergraduate students, and one-half of all Latino
undergraduate students, rely on the Federal Pell Grant program.
(5) The Federal Pell Grant program should continue to be a
reliable source of funding for aspiring students, their
families, and future generations that they can count on to be
there for them when they seek higher education.
(6) To stabilize Federal Pell Grant funding and ensure the
grant will continue to serve millions of students now and in
the future, the program should become a fully mandatory program
that grows with inflation.
(7) Restoring prior eligibility cuts and expanding access
to underserved students will give millions of students and
families the critical student aid support they need and
deserve.
SEC. 3. TABLE OF CONTENTS; REFERENCES.
(a) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title.
Sec. 2. Findings.
Sec. 3. Table of contents; references.
Sec. 4. Doubling Federal Pell Grants and providing all Federal Pell
Grants through mandatory funding.
Sec. 5. Providing increased Federal Pell Grants and other assistance
for recipients of means-tested benefits.
Sec. 6. Federal aid eligibility for dreamer students.
Sec. 7. Restoring the total semesters of Federal Pell Grant
eligibility.
Sec. 8. Reducing financial aid penalties from satisfactory academic
progress determinations.
Sec. 9. Conforming amendments.
Sec. 10. Effective date.
(b) References.--Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
SEC. 4. DOUBLING FEDERAL PELL GRANTS AND PROVIDING ALL FEDERAL PELL
GRANTS THROUGH MANDATORY FUNDING.
(a) Amount of Minimum Federal Pell Grants.--Section 401 (20 U.S.C.
1070a) is amended--
(1) in subsection (a)(2)(F), by striking ``10 percent'' and
inserting ``5 percent'';
(2) in subsection (b)--
(A) in paragraph (1)(B)(i), by striking ``paragraph
(5)(A)'' and inserting ``paragraph (5)'';
(B) by striking paragraph (5) and inserting the
following:
``(5) Total maximum federal pell grant.--
``(A) Award year 2025-2026.--For award year 2025-
2026, the total maximum Federal Pell Grant award shall
be $10,000.
``(B) Award year 2026-2027.--For award year 2026-
2027, the total maximum Federal Pell Grant award shall
be $11,000.
``(C) Award year 2027-2028.--For award year 2027-
2028, the total maximum Federal Pell Grant award shall
be $12,000.
``(D) Award year 2028-2029.--For award year 2028-
2029, the total maximum Federal Pell Grant award shall
be $13,000.
``(E) Award year 2029-2030.--For award year 2029-
2030, the total maximum Federal Pell Grant award shall
be $14,000.
``(F) Award year 2030-2031 and subsequent years.--
For award year 2030-2031, and each subsequent award
year, the total maximum Federal Pell Grant award shall
be $14,000--
``(i) increased by the adjustment
percentage for the award year for which the
amount under this subparagraph is being
determined; and
``(ii) rounded to the nearest $50.
``(G) Definition of adjustment percentage.--In this
paragraph, the term `adjustment percentage,' as applied
to an award year, is equal to the percentage increase
in the Consumer Price Index, as defined in section
478(f), for the most recent calendar year ending prior
to the beginning of the award year.'';
(C) by striking paragraphs (6) and (7) and
inserting the following:
``(6) Appropriation of funds.--There are authorized to be
appropriated, and there are appropriated, out of any money in
the Treasury not otherwise appropriated, such sums as may be
necessary for fiscal year 2025 and each subsequent fiscal year
to provide the Federal Pell Grant for which a student shall be
eligible under this section during an award year.''; and
(D) by redesignating paragraphs (8) and (9) as
paragraphs (7) and (8), respectively;
(3) in subsection (d)(5)(B)--
(A) in clause (i), by striking ``subclause (I) or
(II)'' and inserting ``subclause (I), (II), or (III)'';
and
(B) in clause (ii)--
(i) in subclause (I)(bb), by striking
``or'' after the semicolon;
(ii) in subclause (II)(bb)(CC), by striking
the period and inserting ``; or''; and
(iii) by adding at the end the following:
``(III) during a period for which
the student did not receive a loan
under this title but for which, if the
student had received such a loan, such
loan would have been discharged under
the circumstances described in
subclause (II)(bb)(CC).'';
(4) by striking subsections (g) and (h); and
(5) by redesignating subsections (i) and (j) as subsections
(g) and (h), respectively.
(b) Repeal of Scoring Requirement.--Section 406 of H. Con. Res. 95
(109th Congress) is amended--
(1) by striking subsection (b); and
(2) by striking ``(a) In General.--Upon'' and inserting the
following: ``Upon''.
(c) Student Support Services.--Section 402D(d)(1) (20 U.S.C. 1070a-
14(d)(1)) is amended by striking ``the minimum'' and inserting ``10
percent of the total maximum''.
(d) Scholarship Component.--Section 404E(d) (20 U.S.C. 1070a-25(d))
is amended by striking ``less than the minimum'' and inserting ``less
than 10 percent of the total maximum''.
SEC. 5. PROVIDING INCREASED FEDERAL PELL GRANTS AND OTHER ASSISTANCE
FOR RECIPIENTS OF MEANS-TESTED BENEFITS.
(a) Increased Amount of Maximum Federal Pell Grants for Students
With Negative Student Aid Indexes.--Section 401(b)(1) (20 U.S.C.
1070a(b)(1)), as amended by section 4 of this Act, is further amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``A student'' and inserting ``Except in the case of a
student with a student aid index of less than zero, a
student'';
(B) by striking clause (i); and
(C) by redesignating clauses (ii) and (iii) as
clauses (i) and (ii), respectively;
(2) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F), respectively;
(3) by inserting after subparagraph (A) the following:
``(B) A student with a student aid index of less
than zero shall be eligible for a Federal Pell Grant
award that exceeds the total maximum Federal Pell Grant
by an amount equal to the amount by which the student's
student aid index is less than zero.'';
(4) in subparagraph (C), as redesignated by paragraph (2)--
(A) in the matter preceding clause (i), by striking
``subparagraph (A) for an academic year,'' and
inserting ``subparagraph (A), or an increased Federal
Pell Grant under subparagraph (B), for an academic
year,''; and
(B) in clause (ii), by striking ``, except that a
student aid index of less than zero shall be considered
to be zero for the purposes of this clause'';
(5) in subparagraph (D), as redesignated by paragraph (2),
by striking ``(A) or (B)'' and inserting ``(A), (B), or (C)'';
(6) in subparagraph (E), as redesignated by paragraph (2),
by inserting ``or an increased Federal Pell Grant under
subparagraph (B)'' after ``subparagraph (A)''; or
(7) in subparagraph (F), as redesignated by paragraph (2),
by striking ``or a minimum Federal Pell Grant under
subparagraph (C)'' and inserting ``an increased Federal Pell
Grant under subparagraph (B), or a minimum Federal Pell Grant
under subparagraph (D)''.
(b) Special Student Aid Index Rule for Recipients of Means-Tested
Benefits.--Section 473 (20 U.S.C. 1087mm) is amended by adding at the
end the following:
``(d) Special Rule for Means-Tested Benefit Recipients.--
Notwithstanding subsection (b), for an applicant (or, as applicable, an
applicant and spouse, or an applicant's parents) who, at any time
during the previous 2 -year period, received a benefit under a means-
tested Federal benefit program, as defined in section 479(b)(4)(H), (or
whose parent or spouse received such a benefit, as applicable), the
Secretary shall for the purposes of this title consider the student aid
index as equal to -$1,500 for the applicant.''.
SEC. 6. FEDERAL AID ELIGIBILITY FOR DREAMER STUDENTS.
Section 484 (20 U.S.C. 1091) is amended--
(1) in subsection (a)(5), by inserting ``, or be a Dreamer
student, as defined in subsection (u)'' after ``becoming a
citizen or permanent resident''; and
(2) by adding at the end the following:
``(u) Dreamer Students.--
``(1) In general.--In this section, the term `Dreamer
student' means an individual who--
``(A)(i) is not a citizen or national of the United
States; and
``(ii) is inadmissible or deportable under the
Immigration and Nationality Act (8 U.S.C. 1101 et
seq.)); and
``(B)(i) in the case of such an individual who was
younger than 18 years of age on the date on which the
individual initially entered the United States--
``(I) has earned a high school diploma, the
recognized equivalent of such diploma from a
secondary school, or a high school equivalency
diploma recognized by State law, or is
scheduled to complete the requirements for such
a diploma or equivalent before the next
academic year begins;
``(II) is enrolled at an institution of
higher education pursuant to subsection (d);
``(III) has served in the uniformed
services (as such term is defined in section
101 of title 10, United States Code) for not
less than 2 years and, if discharged, received
an honorable discharge;
``(IV) has acquired a degree, certificate,
or recognized postsecondary credential from an
institution of higher education or area career
and technical education school (as such term is
defined in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20
U.S.C. 2302)); or
``(V) has completed not less than 2 years
in a postsecondary program at an institution of
higher education, or area career and technical
education school, in the United States; or
``(ii)(I) is, or at any time was, eligible for a
grant of deferred action pursuant to--
``(aa) the memorandum of the Department of
Homeland Security entitled `Exercising
Prosecutorial Discretion with Respect to
Individuals Who Came to the United States as
Children' issued on June 15, 2012; or
``(bb) the memorandum of the Department of
Homeland Security entitled `Exercising
Prosecutorial Discretion with Respect to
Individuals Who Came to the United States as
Children and with Respect to Certain
Individuals Who Are the Parents of U.S.
Citizens or Permanent Residents' issued on
November 20, 2014; or
``(II) would have been eligible for such a grant of
deferred action if the applicable memorandum described
in subclause (I) had been fully in effect since the
date on which it was issued.
``(2) Hardship exception.--The Secretary shall issue
regulations that direct when the Department shall waive the age
requirement of paragraph (1)(B)(i) for an individual to qualify
as a Dreamer student under such paragraph, if the individual
demonstrates compelling circumstances, such as economic
hardship (as defined in section 435(o)).''.
SEC. 7. RESTORING THE TOTAL SEMESTERS OF FEDERAL PELL GRANT
ELIGIBILITY.
Section 401(d)(5)(A) is amended by striking ``12'' each place the
term appears and inserting ``18''.
SEC. 8. REDUCING FINANCIAL AID PENALTIES FROM SATISFACTORY ACADEMIC
PROGRESS DETERMINATIONS.
Section 484(c) of the Higher Education Act of 1965 (20 U.S.C.
1091(c)) is amended to read as follows:
``(c) Satisfactory Progress.--
``(1) Definitions.--In this subsection:
``(A) Appeal.--The term `appeal' means a process by
which a student who is not meeting the institution's
satisfactory academic progress standards petitions the
institution for reconsideration of the student's
eligibility for assistance under this title.
``(B) Financial aid probation.--The term `financial
aid probation' means a status assigned by an
institution to a student who fails to make satisfactory
academic progress and who has appealed and has had
eligibility for aid reinstated.
``(C) Financial aid warning.--The term `financial
aid warning' means a status assigned to a student who
fails to make satisfactory academic progress at the end
of the semester or equivalent period in which the
student first fails to make such progress.
``(D) Payment period.--The term `payment period'
means the applicable payment period described in
section 668.4 of title 34, Code of Federal Regulations,
or any successor regulation.
``(2) Satisfactory academic progress policy.--An
institution shall establish a reasonable satisfactory academic
progress policy for determining whether an otherwise eligible
student is making satisfactory academic progress in the
student's educational program and may receive assistance under
this title. The Secretary shall consider the institution's
policy to be reasonable if--
``(A) the policy is not more burdensome than the
policy the institution applies to a student who is not
receiving assistance under this title;
``(B) the policy provides for consistent
application of standards to all students, including
full-time, part-time, undergraduate, and graduate
students, and all educational programs established by
the institution;
``(C)(i) the policy specifies the grade point
average that a student must achieve at each evaluation,
or if a grade point average is not an appropriate
qualitative measure, a comparable assessment measured
against a norm; and
``(ii) if a student is enrolled in an educational
program of more than 2 academic years, the policy
specifies that at the end of the second academic year,
the student must have a grade point average of at least
a `C' or its equivalent, or have academic standing
consistent with the institution's requirements for
graduation;
``(D) the policy provides for measurement of the
student's progress at each evaluation;
``(E) the policy describes--
``(i) how a student's grade point average
and the pace at which the student progresses
toward completion are affected by course
incompletes, withdrawals, or repetitions, or
transfers of credit from other institutions,
including that credit hours from another
institution that are accepted toward the
student's educational program are counted as
both attempted and completed hours; and
``(ii) how after a student reenrolls after
the student's satisfactory academic progress
was reset pursuant to paragraph (3)(B), the
student may have any credits that were earned
before the student was determined not to be
making satisfactory academic progress counted
for purposes of determining progress when the
student reenrolls, but any attempted hours that
were not earned by the student (including
incompletes, withdrawn courses, and failed
courses) before the student was determined not
to be making satisfactory academic progress
will not negatively impact the determination of
whether the student made satisfactory academic
progress after such reset;
``(F) the policy provides that, except as provided
in subparagraph (G) with respect to a student placed on
financial aid warning or financial aid probation and
paragraph (3), a student is no longer eligible to
receive assistance under this title if the student has
not achieved the required grade point average or who is
not making progress toward completion in the student's
educational program--
``(i) at the time of each evaluation with
respect to a student who is in an educational
program of 2 academic years or less in length;
or
``(ii) at the end of the second academic
year with respect to a student who is in an
educational program of more than 2 academic
years in length;
``(G) the policy describes when students will be
placed on financial aid warning or financial aid
probation, in accordance with paragraph (4), and
provides that--
``(i) a student on financial aid warning--
``(I) shall continue to be eligible
for assistance under this title for one
payment period despite a determination
that the student is not making
satisfactory academic progress; and
``(II) may be assigned such status
without an appeal or other action by
the student; and
``(ii)(I) a student on financial aid
probation may receive assistance under this
title for one payment period and the
institution may require the student to fulfill
specific terms and conditions, such as taking a
reduced course load or enrolling in specific
courses; and
``(II) at the end of such one payment
period, the student is required to meet the
institution's satisfactory academic progress
standards, or meet the requirements of the
academic plan developed by the institution and
the student, in order to qualify for continued
assistance under this title;
``(H) if the institution permits a student to
appeal a determination by the institution that the
student is not making satisfactory academic progress,
the policy describes--
``(i) how the student may reestablish the
student's eligibility to receive assistance
under this title;
``(ii) the basis on which the student may
file an appeal, including because of the death
of a relative, an injury or illness of the
student, or another special circumstance; and
``(iii) information the student is required
to submit regarding why the student failed to
make satisfactory academic progress, and what
has changed in the student's situation that
will allow the student to demonstrate
satisfactory academic progress at the next
evaluation;
``(I) if the institution does not permit a student
to appeal a determination by the institution that the
student is not making satisfactory academic progress,
the policy describes how the student may reestablish
the student's eligibility to receive assistance under
this title;
``(J) the policy provides for notification to
students of the results of an evaluation that impacts
the student's eligibility for assistance under this
title; and
``(K) the policy does not impose satisfactory
progress limitations on need-based institutional aid
that are more stringent than the standard applied under
this subsection, unless the institution demonstrates to
the satisfaction of the Secretary that the policy
improves student persistence in, and completion of,
postsecondary education for all students.
``(3) Regaining eligibility.--
``(A) Students who remain in school.--Whenever a
student fails to meet the eligibility requirements of
subsection (a)(2) as a result of the application of
this subsection and, subsequent to that failure, the
student has academic standing for any grading period
consistent with the requirements for staying on track
to graduate within 150 percent of the published length
of the educational program, as determined by the
institution, the student shall again be eligible under
subsection (a)(2) for a grant, loan, or work assistance
under this title, as long as the student maintains
satisfactory academic progress under paragraph (2)
beginning on and after the date that the student
regains eligibility.
``(B) Students who leave school.--
``(i) In general.--If a student has not
been enrolled in any institution of higher
education for the immediately preceding 2
years, any previous failure to meet the
eligibility requirements of subsection (a)(2)
shall not be used in any determination of
eligibility of such student under such
subsection. Such student shall, on the date of
enrollment subsequent to such 2-year period,
have the student's eligibility for a grant,
loan, or work assistance under this title reset
and be deemed as meeting the requirements
described in paragraph (2). Beginning on and
after such date, the student's satisfactory
academic progress shall be determined in
accordance with paragraph (2)(E)(ii).
``(ii) Maximum number of resets.--A student
shall be eligible for a reset of eligibility
pursuant to this subparagraph not more than 2
times.
``(C) Duties of the secretary.--The Secretary
shall--
``(i) send, to each student who failed to
meet the eligibility requirements of subsection
(a)(2) and who has not regained eligibility for
a grant, loan, or work assistance under
subparagraph (A), a notice, two years after
such failure, that includes--
``(I) a notification that, if the
student has not been enrolled in any
institution of higher education for the
preceding two years and has not
received two resets of eligibility
under subparagraph (B), the student may
use grant, loan, or work assistance
under this title for enrollment at any
eligible institution, including an
institution other than the institution
in which the student was previously
enrolled;
``(II) a notification that, if the
student has remained enrolled, or
resumed enrollment, at an institution
of higher education, the student may be
eligible for a grant, loan, or work
assistance under this title subject to
the requirements of subparagraph (A);
``(III) information on how many
semesters of eligibility for a grant,
loan, or work assistance under this
title to which the student still has
access; and
``(IV) a notification that the
student should ask any prospective
eligible institution how many of the
student's previously completed credits
the student would be able to transfer;
and
``(ii) submit an annual report to Congress
on the outcomes of students who have received a
reset of eligibility pursuant to this
paragraph, including--
``(I) the number of students who
reenroll in an eligible institution
after such reset, disaggregated by
race, ethnicity, sex, age,
socioeconomic status, and disability
status;
``(II) the 250 eligible
institutions with the highest numbers
of enrolled students receiving grant,
loan, or work assistance under this
title after such a reset;
``(III) the 250 eligible
institutions with the highest share of
enrolled students receiving grant,
loan, or work assistance under this
title after such a reset; and
``(IV) the average completion rate
and time to completion for students who
reenroll in an eligible institution
after such reset, disaggregated by
institution.
``(4) Evaluation of academic progress.--
``(A) In general.--An institution that determines
that a student is not making satisfactory academic
progress under its policy may disburse funds provided
through student financial assistance programs under
this title (including work-study programs under
subtitle C) to the student in accordance with
subparagraphs (B), (C), and (D).
``(B) Payment period following not making
satisfactory academic progress.--For the payment period
following the payment period in which a student did not
make satisfactory academic progress, the institution
shall place the student on financial aid warning and
disburse funds under this title to the student.
``(C) Payment period following financial aid
warning.--For the payment period following a payment
period during which a student was on financial aid
warning, the institution may place the student on
financial aid probation, and disburse funds under this
title to the student if--
``(i) the institution evaluates the
student's progress and determines that student
did not make satisfactory academic progress
during the payment period the student was on
financial aid warning;
``(ii) the student appeals the
determination; and
``(iii)(I) the institution determines that
the student should be able to meet the
institution's satisfactory academic progress
standards by the end of the subsequent payment
period; or
``(II) the institution develops an academic
plan for the student that, if followed, will
ensure that the student is able to meet the
institution's satisfactory academic progress
standards by a specific point in time.
``(D) Payment period following financial aid
probation.--A student on financial aid probation for a
payment period may not receive funds under this title
for the subsequent payment period unless the student
makes satisfactory academic progress or the institution
determines that the student met the requirements
specified by the institution in the academic plan for
the student developed under subparagraph (C)(iii)(II).
``(E) Frequency of academic progress evaluation and
communication.--
``(i) In general.--Subject to clause (ii),
for the purpose of determining whether
presently enrolled students are maintaining
satisfactory progress, each institution of
higher education that enrolls students who
receive any grant, loan, or work assistance
under this title shall review the progress of
such students at the end of each payment
period.
``(ii) Shorter payment periods.--For each
institution described in clause (i) that has
payment periods that are shorter than on the
semester system basis (such as on a quarterly
or trimester system basis or by clock hour
program or non-term program), such institution
shall review the progress of presently enrolled
students at the end of each semester or
equivalent period of 12 to 18 weeks.
``(iii) Financial aid warning.--At the end
of each payment period (or, in the case of an
institution described in clause (ii), at the
end of each semester or equivalent period),
each institution shall send a financial aid
warning to presently enrolled students that do
not meet the grade point average requirement
described in paragraph (2), or its equivalent
or academic standing consistent with the
requirements for graduation, as determined by
the institution, that informs the students of
their risk of being determined to not be
maintaining satisfactory progress and therefore
losing eligibility for grant, loan, or work
assistance under this title and provides
information on--
``(I) the specific criteria of the
institution's academic requirements
that the student is not meeting and the
specific improvements needed to meet
the requirements; and
``(II) how to meet with the
student's academic advisor to get the
academic support the student needs.
``(5) Detailing requirements to students.--Each institution
of higher education that enrolls students who receive any
grant, loan, or work assistance under this title shall detail
the institution's requirements regarding students maintaining
satisfactory academic progress--
``(A) to such students before the students begin
classes at the institution through a detailed
communication that may be separate from a financial aid
offer; and
``(B) on the financial aid webpage of the website
of the institution.
``(6) Consumer testing.--The Secretary shall conduct
consumer testing to develop exemplary practices and templates--
``(A) to support institutions of higher education
in carrying out paragraph (5); and
``(B) which shall be available as resources for
institutions of higher education.''.
SEC. 9. CONFORMING AMENDMENTS.
The Act (20 U.S.C. 1001 et seq.) is amended--
(1) in section 401A(d)(1)(B)(i) (20 U.S.C. 1070a-
1(d)(1)(B)(i)), by striking ``section 401(b)(2)(B)'' and
inserting ``section 401(b)(2)'';
(2) in section 402D(d)(1) (20 U.S.C. 1070a-14(d)(1))--
(A) by striking ``section 401(b)(2)(A)'' and
inserting ``section 401(b)(1)''; and
(B) by striking ``described in section 401(b)(4)''
and inserting ``as described in section 401(b)(5)'';
(3) in section 435(a)(5)(A)(i)(I) (20 U.S.C.
1085(a)(5)(A)(i)(I)), by striking ``under section
401(b)(2)(A)'' and inserting ``under section 401(b)(1)''; and
(4) in section 894(f)(2)(C)(ii)(I) (20 U.S.C.
1161y(f)(2)(C)(ii)(I)), by striking ``section 401(b)(2)(A)''
and inserting ``section 401(b)(1)''.
SEC. 10. EFFECTIVE DATE.
Except as otherwise provided, this Act, and the amendments made by
this Act to the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.),
shall take effect on July 1, 2025, and apply with respect to award year
2025-2026 and each subsequent award year, as determined under the
Higher Education Act of 1965. The Secretary of Education shall have the
authority to take such steps as are necessary before July 1, 2025, to
provide for the orderly implementation on such date of the amendments
to the Higher Education Act of 1965 made by this Act.
<all>