Text: H.R.4137 — 110th Congress (2007-2008)All Information (Except Text)

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Public Law No: 110-315 (08/14/2008)

 
[110th Congress Public Law 315]
[From the U.S. Government Printing Office]


[DOCID: f:publ315.110]

[[Page 3077]]

                    HIGHER EDUCATION OPPORTUNITY ACT

[[Page 122 STAT. 3078]]

Public Law 110-315
110th Congress

                                 An Act


 
  To amend and extend the Higher Education Act of 1965, and for other 
            purposes. <<NOTE: Aug. 14, 2008 -  [H.R. 4137]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Higher Education 
Opportunity Act.>> assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 20 USC 1001 note.>>  Short Title.--This Act may be cited 
as the ``Higher Education Opportunity Act''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. General effective date.

                       TITLE I--GENERAL PROVISIONS

Sec. 101. General definition of institution of higher education.
Sec. 102. Definition of institution of higher education for purposes of 
           title IV programs.
Sec. 103. Additional definitions.
Sec. 104. Protection of student speech and association rights.
Sec. 105. Treatment of territories and territorial student assistance.
Sec. 106. National Advisory Committee on Institutional Quality and 
           Integrity.
Sec. 107. Drug and alcohol abuse prevention.
Sec. 108. Prior rights and obligations.
Sec. 109. Diploma mills.
Sec. 110. Improved information concerning the Federal student financial 
           aid website.
Sec. 111. Transparency in college tuition for consumers.
Sec. 112. Textbook information.
Sec. 113. Database of student information prohibited.
Sec. 114. In-State tuition rates for Armed Forces members, spouses, and 
           dependent children.
Sec. 115. State higher education information system pilot program.
Sec. 116. State commitment to affordable college education.
Sec. 117. Performance-based organization for the delivery of Federal 
           student financial assistance.
Sec. 118. Procurement flexibility.
Sec. 119. Certification regarding the use of certain Federal funds.
Sec. 120. Institution and lender reporting and disclosure requirements.

                  TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality enhancement.

                      TITLE III--INSTITUTIONAL AID

Sec. 301. Program purpose.
Sec. 302. Definitions; eligibility.
Sec. 303. American Indian tribally controlled colleges and universities.
Sec. 304. Alaska Native and Native Hawaiian-serving institutions.
Sec. 305. Predominantly Black Institutions.
Sec. 306. Native American-serving, nontribal institutions.
Sec. 307. Assistance to Asian American and Native American Pacific 
           Islander-serving institutions.

[[Page 122 STAT. 3079]]

Sec. 308. Part B definitions.
Sec. 309. Grants to institutions.
Sec. 310. Allotments.
Sec. 311. Professional or graduate institutions.
Sec. 312. Unexpended funds.
Sec. 313. Endowment Challenge Grants.
Sec. 314. Historically Black college and university capital financing.
Sec. 315. Programs in STEM fields.
Sec. 316. Investing in historically Black colleges and universities and 
           other minority-serving institutions.
Sec. 317. Technical assistance.
Sec. 318. Waiver authority.
Sec. 319. Authorization of appropriations.
Sec. 320. Technical corrections.

                      TITLE IV--STUDENT ASSISTANCE

   PART A--Grants to Students in Attendance at Institutions of Higher 
                                Education

Sec. 401. Federal Pell Grants.
Sec. 402. Academic competitiveness grants.
Sec. 403. Federal TRIO Programs.
Sec. 404. Gaining early awareness and readiness for undergraduate 
           programs.
Sec. 405. Academic Achievement Incentive Scholarships.
Sec. 406. Federal Supplemental Educational Opportunity Grants.
Sec. 407. Leveraging Educational Assistance Partnership program.
Sec. 408. Special programs for students whose families are engaged in 
           migrant and seasonal farmwork.
Sec. 409. Robert C. Byrd Honors Scholarship Program.
Sec. 410. Child care access means parents in school.
Sec. 411. Learning Anytime Anywhere Partnerships.
Sec. 412. TEACH Grants.

              PART B--Federal Family Education Loan Program

Sec. 421. Limitations on amounts of loans covered by Federal insurance.
Sec. 422. Federal payments to reduce student interest costs.
Sec. 423. Voluntary flexible agreements.
Sec. 424. Federal PLUS loans.
Sec. 425. Federal consolidation loans.
Sec. 426. Default reduction program.
Sec. 427. Requirements for disbursement of student loans.
Sec. 428. Unsubsidized Stafford loan limits.
Sec. 429. Loan forgiveness for teachers employed by educational service 
           agencies.
Sec. 430. Loan forgiveness for service in areas of national need.
Sec. 431. Loan repayment for civil legal assistance attorneys.
Sec. 432. Reports to consumer reporting agencies and institutions of 
           higher education.
Sec. 433. Legal powers and responsibilities.
Sec. 434. Student loan information by eligible lenders.
Sec. 435. Consumer education information.
Sec. 436. Definitions of eligible institution and eligible lender.
Sec. 437. Discharge and cancellation rights in cases of disability.
Sec. 438. Conforming amendments for repeal of section 439.

                   PART C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.
Sec. 442. Allowance for books and supplies.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Flexible use of funds.
Sec. 445. Job location and development programs.
Sec. 446. Additional funds for off-campus community service.
Sec. 447. Work colleges.

                   PART D--Federal Direct Student Loan

Sec. 451. Terms and conditions of loans.
Sec. 452. Funds for administrative expenses.
Sec. 453. Guaranty agency responsibilities and payments; reports and 
           cost estimates.
Sec. 454. Loan cancellation for teachers.

                      PART E--Federal Perkins Loans

Sec. 461. Extension of authority.

[[Page 122 STAT. 3080]]

Sec. 462. Allowance for books and supplies.
Sec. 463. Agreements with institutions.
Sec. 464. Perkins loan terms and conditions.
Sec. 465. Cancellation for public service.
Sec. 466. Sense of Congress regarding Federal Perkins loans.

                          PART F--Need Analysis

Sec. 471. Cost of attendance.
Sec. 472. Discretion to make adjustments.
Sec. 473. Definitions.

        PART G--General Provisions Relating to Student Assistance

Sec. 481. Definitions.
Sec. 482. Master calendar.
Sec. 483. Improvements to paper and electronic forms and processes.
Sec. 484. Model institution financial aid offer form.
Sec. 485. Student eligibility.
Sec. 486. Statute of limitations and State court judgments.
Sec. 487. Readmission requirements for servicemembers.
Sec. 488. Institutional and financial assistance information for 
           students.
Sec. 489. National Student Loan Data System.
Sec. 490. Early awareness of financial aid eligibility.
Sec. 491. Distance Education Demonstration Programs.
Sec. 492. Articulation agreements.
Sec. 493. Program participation agreements.
Sec. 494. Regulatory relief and improvement.
Sec. 494A. Transfer of allotments.
Sec. 494B. Purpose of administrative payments.
Sec. 494C. Advisory Committee on Student Financial Assistance.
Sec. 494D. Regional meetings and negotiated rulemaking.
Sec. 494E. Year 2000 requirements at the Department.
Sec. 494F. Technical amendment of income-based repayment.

                        PART H--Program Integrity

Sec. 495. Recognition of accrediting agency or association.
Sec. 496. Eligibility and certification procedures.
Sec. 497. Program review and data.
Sec. 498. Review of regulations.

             PART I--Competitive Loan Auction Pilot Program

Sec. 499. Competitive loan auction pilot program evaluation.

                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Authorized activities.
Sec. 502. Postbaccalaureate opportunities for Hispanic Americans.
Sec. 503. Applications.
Sec. 504. Cooperative arrangements.
Sec. 505. Authorization of appropriations.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. Findings; purposes; consultation; survey.
Sec. 602. Graduate and Undergraduate Language and Area Centers and 
           Programs.
Sec. 603. Language Resource Centers.
Sec. 604. Undergraduate International Studies and Foreign Language 
           Programs.
Sec. 605. Research; studies.
Sec. 606. Technological innovation and cooperation for foreign 
           information access.
Sec. 607. Selection of certain grant recipients.
Sec. 608. American overseas research centers.
Sec. 609. Authorization of appropriations for international and foreign 
           language studies.
Sec. 610. Conforming amendments.
Sec. 611. Business and international education programs.
Sec. 612. Minority foreign service professional development program.
Sec. 613. Institutional development.
Sec. 614. Study abroad program.
Sec. 615. Advanced degree in international relations.
Sec. 616. Internships.
Sec. 617. Financial assistance.
Sec. 618. Report.
Sec. 619. Gifts and donations.

[[Page 122 STAT. 3081]]

Sec. 620. Authorization of appropriations for the Institute for 
           International Public Policy.
Sec. 621. Definitions.
Sec. 622. New provisions.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Purpose.
Sec. 702. Jacob K. Javits Fellowship program.
Sec. 703. Graduate assistance in areas of national need.
Sec. 704. Thurgood Marshall Legal educational opportunity program.
Sec. 705. Sense of Congress.
Sec. 706. Masters degree programs at historically Black colleges and 
           universities and Predominantly Black Institutions.
Sec. 707. Fund for the improvement of postsecondary education.
Sec. 708. Repeal of the urban community service program.
Sec. 709. Programs to provide students with disabilities with a quality 
           higher education.
Sec. 710. Subgrants to nonprofit organizations.

                     TITLE VIII--ADDITIONAL PROGRAMS

Sec. 801. Additional programs.
Sec. 802. National Center for Research in Advanced Information and 
           Digital Technologies.
Sec. 803. Establishment of pilot program for course material rental.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

                PART A--Education of the Deaf Act of 1986

Sec. 901. Laurent Clerc National Deaf Education Center.
Sec. 902. Agreement with Gallaudet University.
Sec. 903. Agreement for the National Technical Institute for the Deaf.
Sec. 904. Cultural experiences grants.
Sec. 905. Audit.
Sec. 906. Reports.
Sec. 907. Monitoring, evaluation, and reporting.
Sec. 908. Liaison for educational programs.
Sec. 909. Federal endowment programs for Gallaudet University and the 
           National Technical Institute for the Deaf.
Sec. 910. Oversight and effect of agreements.
Sec. 911. International students.
Sec. 912. Research priorities.
Sec. 913. National study on the education of the deaf.
Sec. 914. Authorization of appropriations.

              PART B--UNITED STATES INSTITUTE OF PEACE ACT

Sec. 921. United States Institute of Peace Act.

 PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998; THE HIGHER EDUCATION 
                           AMENDMENTS OF 1992

Sec. 931. Repeals.
Sec. 932. Grants to States for workplace and community transition 
           training for incarcerated individuals.
Sec. 933. Underground Railroad Educational and Cultural Program.
Sec. 934. Olympic Scholarships.
Sec. 935. Establishment of a Deputy Assistant Secretary for 
           International and Foreign Language Education.

    PART D--TRIBAL COLLEGE AND UNIVERSITIES; NAVAJO HIGHER EDUCATION

               subpart 1--tribal colleges and universities

Sec. 941. Reauthorization of the Tribally Controlled College or 
           University Assistance Act of 1978.

                   subpart 2--navajo higher education

Sec. 945. Short title.
Sec. 946. Reauthorization of Navajo Community College Act.

       PART E--Omnibus Crime Control and Safe Streets Act of 1968

Sec. 951. Short title.

[[Page 122 STAT. 3082]]

Sec. 952. Loan repayment for prosecutors and defenders.

        PART F--Institutional Loan Repayment Assistance Programs

Sec. 961. Institutional loan forgiveness programs.

  PART G--Minority Serving Institution Digital and Wireless Technology 
                           Opportunity Program

Sec. 971. Minority Serving Institution Digital and Wireless Technology 
           Opportunity Program.
Sec. 972. Authorization of appropriations.

                TITLE X--PRIVATE STUDENT LOAN IMPROVEMENT

Sec. 1001. Short title.
Sec. 1002. Regulations.
Sec. 1003. Effective dates.

Subtitle A--Preventing Unfair and Deceptive Private Educational Lending 
             Practices and Eliminating Conflicts of Interest

Sec. 1011. Amendment to the Truth in Lending Act.
Sec. 1012. Civil liability.
Sec. 1013. Clerical amendment.

      Subtitle B--Improved Disclosures for Private Education Loans

Sec. 1021. Private education loan disclosures and limitations.
Sec. 1022. Application of Truth in Lending Act to all private education 
           loans.

                    Subtitle C--College Affordability

Sec. 1031. Community Reinvestment Act credit for low-cost loans.

           Subtitle D--Financial Literacy; Studies and Reports

Sec. 1041. Definitions.
Sec. 1042. Coordinated education efforts.

                      TITLE XI--STUDIES AND REPORTS

Sec. 1101. Study on foreign graduate medical schools.
Sec. 1102. Employment of postsecondary education graduates.
Sec. 1103. Study on IPEDS.
Sec. 1104. Report and study on articulation agreements.
Sec. 1105. Report on proprietary institutions of higher education.
Sec. 1106. Analysis of Federal regulations on institutions of higher 
           education.
Sec. 1107. Independent evaluation of distance education programs.
Sec. 1108. Review of costs and benefits of environmental, health, and 
           safety standards.
Sec. 1109. Study of minority male academic achievement.
Sec. 1110. Study on bias in standardized tests.
Sec. 1111. Endowment report.
Sec. 1112. Study of correctional postsecondary education.
Sec. 1113. Study of aid to less-than-half-time students.
Sec. 1114. Study on regional sensitivity in the needs analysis formula.
Sec. 1115. Study of the impact of student loan debt on public service.
Sec. 1116. Study on teaching students with reading disabilities.
Sec. 1117. Report on income contingent repayment through the income tax 
           withholding system.
Sec. 1118. Developing additional measures of degree completion.
Sec. 1119. Study on the financial and compliance audits of the Federal 
           student loan program.
Sec. 1120. Summit on sustainability.
Sec. 1121. Nursing school capacity.
Sec. 1122. Study and report on nonindividual information.
Sec. 1123. Feasibility study for student loan clearinghouse.
Sec. 1124. Study on Department of Education oversight of incentive 
           compensation ban.
Sec. 1125. Definition of authorizing committees.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall

[[Page 122 STAT. 3083]]

be considered to be made to a section or other provision of the Higher 
Education Act of 1965 (20 U.S.C. 1001 et seq.).
SEC. 3. <<NOTE: 20 USC 1001 note.>>  GENERAL EFFECTIVE DATE.

    Except as otherwise provided in this Act or the amendments made by 
this Act, this Act and the amendments made by this Act shall take effect 
on the date of enactment of this Act.

                       TITLE I--GENERAL PROVISIONS

SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

    (a) Amendments.--Section 101 (20 U.S.C. 1001) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting before the 
                semicolon the following: ``, or persons who meet the 
                requirements of section 484(d)(3)''; and
                    (B) in paragraph (3), by inserting ``, or awards a 
                degree that is acceptable for admission to a graduate or 
                professional degree program, subject to review and 
                approval by the Secretary'' after ``such a degree''; and
            (2) by striking paragraph (2) of subsection (b) and 
        inserting the following:
            ``(2) a public or nonprofit private educational institution 
        in any State that, in lieu of the requirement in subsection 
        (a)(1), admits as regular students individuals--
                    ``(A) who are beyond the age of compulsory school 
                attendance in the State in which the institution is 
                located; or
                    ``(B) who will be dually or concurrently enrolled in 
                the institution and a secondary school.''.

    (b) <<NOTE: 20 USC 1001 note.>>  Effective Date.--The amendments 
made by this section shall take effect on July 1, 2010.
SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR 
                        PURPOSES OF TITLE IV PROGRAMS.

    (a) International Medical Schools and Nursing Schools.--Section 
102(a)(2) (20 U.S.C. 1002(a)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in the first sentence of the matter preceding 
                clause (i), by inserting ``nursing school,'' after 
                ``graduate medical school,'';
                    (B) in clause (i)--
                          (i) in the matter preceding subclause (I), by 
                      inserting ``except as provided in subparagraph 
                      (B)(iii)(IV),'' before ``in the case''; and
                          (ii) by striking subclause (II) and inserting 
                      the following new subclause:
                                    ``(II) the institution--
                                            ``(aa) has or had a clinical 
                                        training program that was 
                                        approved by a State as of 
                                        January 1, 1992; and
                                            ``(bb) continues to operate 
                                        a clinical training program in 
                                        at least one State that is 
                                        approved by that State;'';
                    (C) in clause (ii), by striking the period at the 
                end and inserting ``; or''; and

[[Page 122 STAT. 3084]]

                    (D) by adding at the end the following:
                          ``(iii) in the case of a nursing school 
                      located outside of the United States--
                                    ``(I) the nursing school has an 
                                agreement with a hospital, or accredited 
                                school of nursing (as such terms are 
                                defined in section 801 of the Public 
                                Health Service Act (42 U.S.C. 296)), 
                                located in the United States that 
                                requires the students of the nursing 
                                school to complete the students' 
                                clinical training at such hospital or 
                                accredited school of nursing;
                                    ``(II) the nursing school has an 
                                agreement with an accredited school of 
                                nursing located in the United States 
                                providing that the students graduating 
                                from the nursing school located outside 
                                of the United States also receive a 
                                degree from the accredited school of 
                                nursing located in the United States;
                                    ``(III) the nursing school certifies 
                                only Federal Stafford Loans under 
                                section 428, unsubsidized Federal 
                                Stafford Loans under section 428H, or 
                                Federal PLUS loans under section 428B 
                                for students attending the institution;
                                    ``(IV) the nursing school reimburses 
                                the Secretary for the cost of any loan 
                                defaults for current and former students 
                                included in the calculation of the 
                                institution's cohort default rate during 
                                the previous fiscal year; and
                                    ``(V) not less than 75 percent of 
                                the individuals who were students or 
                                graduates of the nursing school, and who 
                                took the National Council Licensure 
                                Examination for Registered Nurses in the 
                                year preceding the year for which the 
                                institution is certifying a Federal 
                                Stafford Loan under section 428, an 
                                unsubsidized Federal Stafford Loan under 
                                section 428H, or a Federal PLUS loan 
                                under section 428B, received a passing 
                                score on such examination.''; and
            (2) in subparagraph (B), by adding at the end the following:
                          ``(iii) Report.--
                                    ``(I) In general.--Not later than 1 
                                year after the date of enactment of the 
                                Higher Education Opportunity Act, the 
                                advisory panel described in clause (i) 
                                shall submit a report to the Secretary 
                                and to the authorizing committees 
                                recommending eligibility criteria for 
                                participation in the loan programs under 
                                part B of title IV for graduate medical 
                                schools that--
                                            ``(aa) are located outside 
                                        of the United States;
                                            ``(bb) do not meet the 
                                        requirements of subparagraph 
                                        (A)(i); and
                                            ``(cc) have a clinical 
                                        training program approved by a 
                                        State prior to January 1, 2008.
                                    ``(II) Recommendations.--In the 
                                report described in subclause (I), the 
                                advisory panel's eligibility criteria 
                                shall include recommendations

[[Page 122 STAT. 3085]]

                                regarding the appropriate levels of 
                                performance for graduate medical schools 
                                described in such subclause in the 
                                following areas:
                                            ``(aa) Entrance 
                                        requirements.
                                            ``(bb) Retention and 
                                        graduation rates.
                                            ``(cc) Successful placement 
                                        of students in United States 
                                        medical residency programs.
                                            ``(dd) Passage rate of 
                                        students on the United States 
                                        Medical Licensing Examination.
                                            ``(ee) The extent to which 
                                        State medical boards have 
                                        assessed the quality of such 
                                        school's program of instruction, 
                                        including through on-site 
                                        reviews.
                                            ``(ff) The extent to which 
                                        graduates of such schools would 
                                        be unable to practice medicine 
                                        in 1 or more States, based on 
                                        the judgment of a State medical 
                                        board.
                                            ``(gg) Any areas recommended 
                                        by the Comptroller General of 
                                        the United States under section 
                                        1101 of the Higher Education 
                                        Opportunity Act.
                                            ``(hh) Any additional areas 
                                        the Secretary may require.
                                    ``(III) Minimum eligibility 
                                requirement.--In the recommendations 
                                described in subclause (II), the 
                                criteria described in subparagraph 
                                (A)(i)(I)(bb), as amended by section 
                                102(b) of the Higher Education 
                                Opportunity Act, shall be a minimum 
                                eligibility requirement for a graduate 
                                medical school described in subclause 
                                (I) to participate in the loan programs 
                                under part B of title IV.
                                    ``(IV) <<NOTE: Deadlines.>>  
                                Authority.--The Secretary may--
                                            ``(aa) not earlier than 180 
                                        days after the submission of the 
                                        report described in subclause 
                                        (I), issue proposed regulations 
                                        establishing criteria for the 
                                        eligibility of graduate medical 
                                        schools described in such 
                                        subclause to participate in the 
                                        loan programs under part B of 
                                        title IV based on the 
                                        recommendations of such report; 
                                        and
                                            ``(bb) not earlier than one 
                                        year after the issuance of 
                                        proposed regulations under item 
                                        (aa), issue final regulations 
                                        establishing such criteria for 
                                        eligibility.''.

    (b) Percentage Pass Rate.--Section 102(a)(2)(A)(i)(I)(bb) (20 U.S.C. 
1002(a)(2)(A)(i)(I)(bb)) is amended by striking ``60'' and inserting 
``75''.
    (c) Conforming Amendment Concerning 90/10 Enforcement.--Section 
102(b)(1) (20 U.S.C. 1002(b)(1)) is amended--
            (1) in subparagraph (D), by adding ``and'' after the 
        semicolon;
            (2) in subparagraph (E), by striking ``; and'' and inserting 
        a period; and
            (3) by striking subparagraph (F).

    (d) Additional Institutions.--
            (1) Amendment.--Section 102 (20 U.S.C. 1002) is further 
        amended--

[[Page 122 STAT. 3086]]

                    (A) in subsection (b)--
                          (i) by striking paragraph (1)(A) and inserting 
                      the following:
                    ``(A)(i) provides an eligible program of training to 
                prepare students for gainful employment in a recognized 
                occupation; or
                    ``(ii)(I) provides a program leading to a 
                baccalaureate degree in liberal arts, and has provided 
                such a program since January 1, 2009; and
                    ``(II) is accredited by a recognized regional 
                accrediting agency or association, and has continuously 
                held such accreditation since October 1, 2007, or 
                earlier;''; and
                          (ii) by striking paragraph (2) and inserting 
                      the following:
            ``(2) Additional institutions.--The term `proprietary 
        institution of higher education' also includes a proprietary 
        educational institution in any State that, in lieu of the 
        requirement in section 101(a)(1), admits as regular students 
        individuals--
                    ``(A) who are beyond the age of compulsory school 
                attendance in the State in which the institution is 
                located; or
                    ``(B) who will be dually or concurrently enrolled in 
                the institution and a secondary school.''; and
                    (B) by striking paragraph (2) of subsection (c) and 
                inserting the following:
            ``(2) Additional institutions.--The term `postsecondary 
        vocational institution' also includes an educational institution 
        in any State that, in lieu of the requirement in section 
        101(a)(1), admits as regular students individuals--
                    ``(A) who are beyond the age of compulsory school 
                attendance in the State in which the institution is 
                located; or
                    ``(B) who will be dually or concurrently enrolled in 
                the institution and a secondary school.''.
            (2) <<NOTE: 20 USC 1002 note.>>  Rule of construction.--
        Nothing in the amendment made by paragraph (1)(A)(i) to section 
        102(b)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 
        1002(b)(1)(A)) shall be construed to negate or supercede any 
        State laws governing proprietary institutions of higher 
        education.

    (e) <<NOTE: 20 USC 1002 note.>>  Effective Date.--The amendments 
made by subsections (a)(1), (b), and (d) shall take effect on July 1, 
2010.
SEC. 103. ADDITIONAL DEFINITIONS.

    (a) Additional Definitions.--
            (1) Amendment.--Section 103 (20 U.S.C. 1003) is amended by 
        adding at the end the following:
            ``(17) Authorizing committees.--The term `authorizing 
        committees' means the Committee on Health, Education, Labor, and 
        Pensions of the Senate and the Committee on Education and Labor 
        of the House of Representatives.
            ``(18) Critical foreign language.--Except as otherwise 
        provided, the term `critical foreign language' means each of the 
        languages contained in the list of critical languages designated 
        by the Secretary in the Federal Register on August 2, 1985 (50 
        Fed. Reg. 31412; promulgated under the authority of section 
        212(d) of the Education for Economic Security Act (repealed by 
        section 2303 of the Augustus F. Hawkins-Robert

[[Page 122 STAT. 3087]]

        T. Stafford Elementary and Secondary School Improvement 
        Amendments of 1988)), as updated by the Secretary from time to 
        time and published in the Federal Register, except that in the 
        implementation of this definition with respect to a specific 
        title, the Secretary may set priorities according to the 
        purposes of such title and the national security, economic 
        competitiveness, and educational needs of the United States.
            ``(19) Distance education.--
                    ``(A) In general.--Except as otherwise provided, the 
                term `distance education' means education that uses one 
                or more of the technologies described in subparagraph 
                (B)--
                          ``(i) to deliver instruction to students who 
                      are separated from the instructor; and
                          ``(ii) to support regular and substantive 
                      interaction between the students and the 
                      instructor, synchronously or asynchronously.
                    ``(B) Inclusions.--For the purposes of subparagraph 
                (A), the technologies used may include--
                          ``(i) the Internet;
                          ``(ii) one-way and two-way transmissions 
                      through open broadcast, closed circuit, cable, 
                      microwave, broadband lines, fiber optics, 
                      satellite, or wireless communications devices;
                          ``(iii) audio conferencing; or
                          ``(iv) video cassettes, DVDs, and CD-ROMs, if 
                      the cassettes, DVDs, or CD-ROMs are used in a 
                      course in conjunction with any of the technologies 
                      listed in clauses (i) through (iii).
            ``(20) Diploma mill.--The term `diploma mill' means an 
        entity that--
                    ``(A)(i) offers, for a fee, degrees, diplomas, or 
                certificates, that may be used to represent to the 
                general public that the individual possessing such a 
                degree, diploma, or certificate has completed a program 
                of postsecondary education or training; and
                    ``(ii) requires such individual to complete little 
                or no education or coursework to obtain such degree, 
                diploma, or certificate; and
                    ``(B) lacks accreditation by an accrediting agency 
                or association that is recognized as an accrediting 
                agency or association of institutions of higher 
                education (as such term is defined in section 102) by--
                          ``(i) the Secretary pursuant to subpart 2 of 
                      part H of title IV; or
                          ``(ii) a Federal agency, State government, or 
                      other organization or association that recognizes 
                      accrediting agencies or associations.
            ``(21) Early childhood education program.--The term `early 
        childhood education program' means--
                    ``(A) a Head Start program or an Early Head Start 
                program carried out under the Head Start Act (42 U.S.C. 
                9831 et seq.), including a migrant or seasonal Head 
                Start program, an Indian Head Start program, or a Head 
                Start program or an Early Head Start program that also 
                receives State funding;
                    ``(B) a State licensed or regulated child care 
                program; or

[[Page 122 STAT. 3088]]

                    ``(C) a program that--
                          ``(i) serves children from birth through age 
                      six that addresses the children's cognitive 
                      (including language, early literacy, and early 
                      mathematics), social, emotional, and physical 
                      development; and
                          ``(ii) is--
                                    ``(I) a State prekindergarten 
                                program;
                                    ``(II) a program authorized under 
                                section 619 or part C of the Individuals 
                                with Disabilities Education Act; or
                                    ``(III) a program operated by a 
                                local educational agency.
            ``(22) Poverty line.--The term `poverty line' means the 
        poverty line (as defined in section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a 
        family of the size involved.
            ``(23) Universal design.--The term `universal design' has 
        the meaning given the term in section 3 of the Assistive 
        Technology Act of 1998 (29 U.S.C. 3002).
            ``(24) Universal design for learning.--The term `universal 
        design for learning' means a scientifically valid framework for 
        guiding educational practice that--
                    ``(A) provides flexibility in the ways information 
                is presented, in the ways students respond or 
                demonstrate knowledge and skills, and in the ways 
                students are engaged; and
                    ``(B) reduces barriers in instruction, provides 
                appropriate accommodations, supports, and challenges, 
                and maintains high achievement expectations for all 
                students, including students with disabilities and 
                students who are limited English proficient.''.
            (2) Redesignation and reordering of definitions.--Section 
        103 (as amended by paragraph (1)) (20 U.S.C. 1003) is further 
        amended by reordering paragraphs (1) through (16) and the 
        paragraphs added by paragraph (1) of this subsection in 
        alphabetical order based on the headings of such paragraphs, and 
        renumbering such paragraphs as so reordered.

    (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)), by 
        striking ``Committee on Labor and Human Resources of the Senate 
        and the Committee on Education and the Workforce of the House of 
        Representatives'' and inserting ``authorizing committees'';
            (2) in section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)), by 
        striking ``Committee on Education and the Workforce of the House 
        of Representatives and the Committee on Labor and Human 
        Resources of the Senate'' and inserting ``authorizing 
        committees'';
            (3) in section 401(f)(3) (20 U.S.C. 1070a(f)(3)), by 
        striking ``to the Committee on Appropriations'' and all that 
        follows through ``House of Representatives'' and inserting ``to 
        the Committee on Appropriations of the Senate, the Committee on 
        Appropriations of the House of Representatives, and the 
        authorizing committees'';
            (4) in section 428 (20 U.S.C. 1078)--

[[Page 122 STAT. 3089]]

                    (A) in subsection (c)(9)(K), by striking ``House 
                Committee on Education and the Workforce and the Senate 
                Committee on Labor and Human Resources'' and inserting 
                ``authorizing committees'';
                    (B) in the matter following paragraph (2) of 
                subsection (g), by striking ``Committee on Labor and 
                Human Resources of the Senate and the Committee on 
                Education and the Workforce of the House of 
                Representatives'' and inserting ``authorizing 
                committees'';
                    (C) in subsection (j)(9)(A) (as added by section 
                5(a) of the Ensuring Continued Access to Student Loans 
                Act of 2008), by striking ``Committee on Health, 
                Education, Labor, and Pensions of the Senate and the 
                Committee on Education and Labor of the House of 
                Representatives'' each place the term appears and 
                inserting ``authorizing committees''; and
                    (D) in subsection (n)(4), by striking ``Committee on 
                Education and the Workforce of the House of 
                Representatives and the Committee on Labor and Human 
                Resources of the Senate'' and inserting ``authorizing 
                committees'';
            (5) in section 428A(c) (20 U.S.C. 1078-1(c))--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (2), by striking ``Chairperson'' and all that 
                follows through ``House of Representatives'' and 
                inserting ``members of the authorizing committees'';
                    (B) in paragraph (3), by striking ``Chairperson'' 
                and all that follows through ``House of 
                Representatives'' and inserting ``members of the 
                authorizing committees''; and
                    (C) in paragraph (5), by striking ``Chairperson'' 
                and all that follows through ``House of 
                Representatives'' and inserting ``members of the 
                authorizing committees'';
            (6) in section 432 (20 U.S.C. 1082)--
                    (A) in subsection (f)(1)(C), by striking ``the 
                Committee on Education and the Workforce of the House of 
                Representatives or the Committee on Labor and Human 
                Resources of the Senate'' and inserting ``either of the 
                authorizing committees''; and
                    (B) in the matter following subparagraph (D) of 
                subsection (n)(3), by striking ``Committee on Education 
                and the Workforce of the House of Representatives and 
                the Committee on Labor and Human Resources of the 
                Senate'' and inserting ``authorizing committees'';
            (7) in section 437(c)(1) (20 U.S.C. 1087(c)(1)), by striking 
        ``Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Labor and Human Resources 
        of the Senate'' and inserting ``authorizing committees'';
            (8) in section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)), by 
        striking ``Committee on Labor and Human Resources of the Senate 
        and the Committee on Education and the Workforce of the House of 
        Representatives'' and inserting ``authorizing committees'';
            (9) in section 482(d) (20 U.S.C. 1089(d)), by striking 
        ``Committee on Labor and Human Resources of the Senate and the 
        Committee on Education and Labor of the House of 
        Representatives'' and inserting ``authorizing committees'';

[[Page 122 STAT. 3090]]

            (10) in section 483(c) (20 U.S.C. 1090(c)), by striking 
        ``Committee on Labor and Human Resources of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives'' and inserting ``authorizing committees'';
            (11) in section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)), by 
        striking ``Committee on Education and the Workforce of the House 
        of Representatives and the Committee on Labor and Human 
        Resources of the Senate'' and inserting ``authorizing 
        committees'';
            (12) in section 486(e) (20 U.S.C. 1093(e)), by striking 
        ``Committee on Labor and Human Resources of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives'' and inserting ``authorizing committees''; and
            (13) in section 487A(a)(5) (20 U.S.C. 1094a(a)(5)), by 
        striking ``Committee on Labor and Human Resources of the Senate 
        and the Committee on Education and the Workforce of the House of 
        Representatives'' and inserting ``authorizing committees''.
SEC. 104. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.

    Section 112 (20 U.S.C. 1011a) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' before ``It is the sense''; 
                and
                    (B) by adding at the end the following:

    ``(2) It is the sense of Congress that--
            ``(A) the diversity of institutions and educational missions 
        is one of the key strengths of American higher education;
            ``(B) individual institutions of higher education have 
        different missions and each institution should design its 
        academic program in accordance with its educational goals;
            ``(C) an institution of higher education should facilitate 
        the free and open exchange of ideas;
            ``(D) students should not be intimidated, harassed, 
        discouraged from speaking out, or discriminated against;
            ``(E) students should be treated equally and fairly; and
            ``(F) nothing in this paragraph shall be construed to 
        modify, change, or infringe upon any constitutionally protected 
        religious liberty, freedom, expression, or association.''; and
            (2) in subsection (b)(1), by inserting ``, provided that the 
        imposition of such sanction is done objectively and fairly'' 
        after ``higher education''.
SEC. 105. TREATMENT OF TERRITORIES AND TERRITORIAL STUDENT 
                        ASSISTANCE.

    Section 113 (20 U.S.C. 1011b) is amended--
            (1) by striking ``treatment of territories and territorial 
        student assistance'' in the heading of such section and 
        inserting ``territorial waiver authority'';
            (2) by striking ``(a) Waiver Authority.--''; and
            (3) by striking subsection (b).
SEC. 106. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND 
                        INTEGRITY.

    (a) Amendment.--Section 114 (20 U.S.C. 1011c) is amended to read as 
follows:

[[Page 122 STAT. 3091]]

``SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY 
                        AND INTEGRITY.

    ``(a) Establishment.--There is established in the Department a 
National Advisory Committee on Institutional Quality and Integrity (in 
this section referred to as the `Committee') to assess the process of 
accreditation and the institutional eligibility and certification of 
institutions of higher education (as defined in section 102) under title 
IV.
    ``(b) Membership.--
            ``(1) In general.--The Committee shall have 18 members, of 
        which--
                    ``(A) six members shall be appointed by the 
                Secretary;
                    ``(B) six members shall be appointed by the Speaker 
                of the House of Representatives, three of whom shall be 
                appointed on the recommendation of the majority leader 
                of the House of Representatives, and three of whom shall 
                be appointed on the recommendation of the minority 
                leader of the House of Representatives; and
                    ``(C) six members shall be appointed by the 
                President pro tempore of the Senate, three of whom shall 
                be appointed on the recommendation of the majority 
                leader of the Senate, and three of whom shall be 
                appointed on the recommendation of the minority leader 
                of the Senate.
            ``(2) Qualifications.--Individuals shall be appointed as 
        members of the Committee--
                    ``(A) on the basis of the individuals' experience, 
                integrity, impartiality, and good judgment;
                    ``(B) from among individuals who are representatives 
                of, or knowledgeable concerning, education and training 
                beyond secondary education, representing all sectors and 
                types of institutions of higher education (as defined in 
                section 102); and
                    ``(C) on the basis of the individuals' technical 
                qualifications, professional standing, and demonstrated 
                knowledge in the fields of accreditation and 
                administration in higher education.
            ``(3) Terms of members.--Except as provided in paragraph 
        (5), the term of office of each member of the Committee shall be 
        for six years, except that any member appointed to fill a 
        vacancy occurring prior to the expiration of the term for which 
        the member's predecessor was appointed shall be appointed for 
        the remainder of such term.
            ``(4) Vacancy.--A <<NOTE: Deadlines.>>  vacancy on the 
        Committee shall be filled in the same manner as the original 
        appointment was made not later than 90 days after the vacancy 
        occurs. <<NOTE: Federal Register, publication. Notice.>>  If a 
        vacancy occurs in a position to be filled by the Secretary, the 
        Secretary shall publish a Federal Register notice soliciting 
        nominations for the position not later than 30 days after being 
        notified of the vacancy.
            ``(5) Initial terms.--The terms of office for the initial 
        members of the Committee shall be--
                    ``(A) three years for members appointed under 
                paragraph (1)(A);
                    ``(B) four years for members appointed under 
                paragraph (1)(B); and
                    ``(C) six years for members appointed under 
                paragraph (1)(C).

[[Page 122 STAT. 3092]]

            ``(6) Chairperson.--The members of the Committee shall 
        select a chairperson from among the members.

    ``(c) Functions.--The Committee shall--
            ``(1) advise the Secretary with respect to establishment and 
        enforcement of the standards of accrediting agencies or 
        associations under subpart 2 of part H of title IV;
            ``(2) advise the Secretary with respect to the recognition 
        of a specific accrediting agency or association;
            ``(3) advise the Secretary with respect to the preparation 
        and publication of the list of nationally recognized accrediting 
        agencies and associations;
            ``(4) advise the Secretary with respect to the eligibility 
        and certification process for institutions of higher education 
        under title IV, together with recommendations for improvements 
        in such process;
            ``(5) advise the Secretary with respect to the relationship 
        between--
                    ``(A) accreditation of institutions of higher 
                education and the certification and eligibility of such 
                institutions; and
                    ``(B) State licensing responsibilities with respect 
                to such institutions; and
            ``(6) carry out such other advisory functions relating to 
        accreditation and institutional eligibility as the Secretary may 
        prescribe by regulation.

    ``(d) Meeting Procedures.--
            ``(1) Schedule.--
                    ``(A) Biannual meetings.--The Committee shall meet 
                not less often than twice each year, at the call of the 
                Chairperson.
                    ``(B) Publication of date.--The <<NOTE: Federal 
                Register, publication. Deadline.>>  Committee shall 
                submit the date and location of each meeting in advance 
                to the Secretary, and the Secretary shall publish such 
                information in the Federal Register not later than 30 
                days before the meeting.
            ``(2) Agenda.--
                    ``(A) Establishment.--The agenda for a meeting of 
                the Committee shall be established by the Chairperson 
                and shall be submitted to the members of the Committee 
                upon notification of the meeting.
                    ``(B) Opportunity for public comment.--The agenda 
                shall include, at a minimum, opportunity for public 
                comment during the Committee's deliberations.
            ``(3) Secretary's designee.--The Secretary shall designate 
        an employee of the Department to serve as the Secretary's 
        designee to the Committee, and the Chairperson shall invite the 
        Secretary's designee to attend all meetings of the Committee.
            ``(4) Federal advisory committee act.--The Federal Advisory 
        Committee Act (5 U.S.C. App.) shall apply to the Committee, 
        except that section 14 of such Act shall not apply.

    ``(e) Report and Notice.--
            ``(1) Notice.--The <<NOTE: Federal Register, publication.>>  
        Secretary shall annually publish in the Federal Register--
                    ``(A) a list containing, for each member of the 
                Committee--
                          ``(i) the member's name;

[[Page 122 STAT. 3093]]

                          ``(ii) the date of the expiration of the 
                      member's term of office; and
                          ``(iii) the name of the individual described 
                      in subsection (b)(1) who appointed the member; and
                    ``(B) a solicitation of nominations for each 
                expiring term of office on the Committee of a member 
                appointed by the Secretary.
            ``(2) <<NOTE: Public information.>>  Report.--Not later than 
        the last day of each fiscal year, the Committee shall make 
        available an annual report to the Secretary, the authorizing 
        committees, and the public. The annual report shall contain--
                    ``(A) a detailed summary of the agenda and 
                activities of, and the findings and recommendations made 
                by, the Committee during the fiscal year preceding the 
                fiscal year in which the report is made;
                    ``(B) a list of the date and location of each 
                meeting during the fiscal year preceding the fiscal year 
                in which the report is made;
                    ``(C) a list of the members of the Committee; and
                    ``(D) a list of the functions of the Committee, 
                including any additional functions established by the 
                Secretary through regulation.

    ``(f) Termination.--The Committee shall terminate on September 30, 
2014.''.
    (b) <<NOTE: 20 USC 1011c note.>>  Transition.--Notwithstanding 
section 114 of the Higher Education Act of 1965 (20 U.S.C. 1011c) (as in 
effect before, during, and after the date of enactment of this Act)--
            (1) the term of each member appointed to the National 
        Advisory Committee on Institutional Quality and Integrity before 
        the date of enactment of this Act shall expire on the date of 
        enactment of this Act;
            (2) no new members shall be appointed to the National 
        Advisory Committee on Institutional Quality and Integrity during 
        the period beginning on the date of enactment of this Act and 
        ending on January 31, 2009; and
            (3) no meeting of the National Advisory Committee on 
        Institutional Quality and Integrity shall be convened during 
        such period.

    (c) <<NOTE: 20 USC 1011c note.>>  Effective Date.--The amendment 
made by subsection (a) shall take effect on January 1, 2009.
SEC. 107. DRUG AND ALCOHOL ABUSE PREVENTION.

    Section 120 (20 U.S.C. 1011i) is amended--
            (1) in subsection (a)(2)--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon;
                    (B) by redesignating subparagraph (B) as 
                subparagraph (D); and
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) determine the number of drug and alcohol-
                related violations and fatalities that--
                          ``(i) occur on the institution's campus (as 
                      defined in section 485(f)(6)), or as part of any 
                      of the institution's activities; and
                          ``(ii) are reported to campus officials;
                    ``(C) determine the number and type of sanctions 
                described in paragraph (1)(E) that are imposed by the

[[Page 122 STAT. 3094]]

                institution as a result of drug and alcohol-related 
                violations and fatalities on the institution's campus or 
                as part of any of the institution's activities; and'';
            (2) in subsection (e)(5), by striking ``$5,000,000'' and all 
        that follows through the period at the end and inserting ``such 
        sums as may be necessary for fiscal year 2009 and each of the 
        five succeeding fiscal years.''; and
            (3) by striking subsection (f).
SEC. 108. PRIOR RIGHTS AND OBLIGATIONS.

    Section 121(a) (20 U.S.C. 1011j(a)) is amended--
            (1) in paragraph (1), by striking ``1999 and for each of the 
        4 succeeding fiscal years'' and inserting ``2009 and for each 
        succeeding fiscal year''; and
            (2) in paragraph (2), by striking ``1999 and for each of the 
        4 succeeding fiscal years'' and inserting ``2009 and for each 
        succeeding fiscal year''.
SEC. 109. DIPLOMA MILLS.

    Part B of title I (20 U.S.C. 1011 et seq.) is further amended by 
adding at the end the following:
``SEC. 123. <<NOTE: 20 USC 1011l.>>  DIPLOMA MILLS.

    ``(a) Information to the Public.--The <<NOTE: Web site.>>  Secretary 
shall maintain information and resources on the Department's website to 
assist students, families, and employers in understanding what a diploma 
mill is and how to identify and avoid diploma mills.

    ``(b) Collaboration.--The Secretary shall continue to collaborate 
with the United States Postal Service, the Federal Trade Commission, the 
Department of Justice (including the Federal Bureau of Investigation), 
the Internal Revenue Service, and the Office of Personnel Management to 
maximize Federal efforts to--
            ``(1) prevent, identify, and prosecute diploma mills; and
            ``(2) broadly disseminate to the public information about 
        diploma mills, and resources to identify diploma mills.''.
SEC. 110. IMPROVED INFORMATION CONCERNING THE FEDERAL STUDENT 
                        FINANCIAL AID WEBSITE.

    (a) Promotion of Federal Student Financial Aid Website.--Section 131 
(20 U.S.C. 1015) is amended by striking subsection (d) and inserting the 
following:
    ``(d) Promotion of the Department of Education Federal Student 
Financial Aid Website.--The Secretary shall display a link to the 
Federal student financial aid website of the Department in a prominent 
place on the homepage of the Department's website.
    ``(e) Enhanced Student Financial Aid Information.--
            ``(1) Implementation.--The Secretary shall continue to 
        improve the usefulness and accessibility of the information 
        provided by the Department on college planning and student 
        financial aid.
            ``(2) Dissemination.--The Secretary shall continue to make 
        the availability of the information on the Federal student 
        financial aid website of the Department widely known, through a 
        major media campaign and other forms of communication.

[[Page 122 STAT. 3095]]

            ``(3) Coordination.--As a part of the efforts required under 
        this subsection, the Secretary shall create one website 
        accessible from the Department's website that fulfills the 
        requirements under subsections (b), (f), and (g).''.

    (b) Improved Information Concerning Financial Aid for Military 
Members and Veterans.--Section 131 (as amended by subsection (a)) (20 
U.S.C. 1015) is further amended by adding at the end the following:
    ``(f) <<NOTE: Web site.>>  Improved Availability and Coordination of 
Information Concerning Student Financial Aid Programs for Military 
Members and Veterans.--
            ``(1) Coordination.--The Secretary, in coordination with the 
        Secretary of Defense and the Secretary of Veterans Affairs, 
        shall create a searchable website that--
                    ``(A) contains information, in simple and 
                understandable terms, about all Federal and State 
                student financial assistance, readmission requirements 
                under section 484C, and other student services, for 
                which members of the Armed Forces (including members of 
                the National Guard and Reserves), veterans, and the 
                dependents of such members or veterans may be eligible; 
                and
                    ``(B) is easily accessible through the website 
                described in subsection (e)(3).
            ``(2) Implementation.--Not <<NOTE: Deadline.>>  later than 
        one year after the date of enactment of the Higher Education 
        Opportunity Act, the Secretary shall make publicly available the 
        Armed Forces information website described in paragraph (1).
            ``(3) Dissemination.--The Secretary, in coordination with 
        the Secretary of Defense and the Secretary of Veterans Affairs, 
        shall make the availability of the Armed Forces information 
        website described in paragraph (1) widely known to members of 
        the Armed Forces (including members of the National Guard and 
        Reserves), veterans, the dependents of such members or veterans, 
        States, institutions of higher education, and the general 
        public.
            ``(4) Definition.--In this subsection, the term `Federal and 
        State student financial assistance' means any grant, loan, work 
        assistance, tuition assistance, scholarship, fellowship, or 
        other form of financial aid for pursuing a postsecondary 
        education that is--
                    ``(A) administered, sponsored, or supported by the 
                Department of Education, the Department of Defense, the 
                Department of Veterans Affairs, or a State; and
                    ``(B) available to members of the Armed Forces 
                (including members of the National Guard and Reserves), 
                veterans, or the dependents of such members or veterans.

    ``(g) Promotion of Availability of Information Concerning Other 
Student Financial Aid Programs.--
            ``(1) Definition.--For purposes of this subsection, the term 
        `nondepartmental student financial assistance program' means any 
        grant, loan, scholarship, fellowship, or other form of financial 
        aid for students pursuing a postsecondary education that is--
                    ``(A) distributed directly to the student or to the 
                student's account at an institution of higher education; 
                and

[[Page 122 STAT. 3096]]

                    ``(B) operated, sponsored, or supported by a Federal 
                department or agency other than the Department of 
                Education.
            ``(2) <<NOTE: Web site.>>  Availability of other student 
        financial aid information.--The Secretary shall ensure that--
                    ``(A) <<NOTE: Deadline.>>  not later than 90 days 
                after the Secretary receives the information required 
                under paragraph (3), the eligibility requirements, 
                application procedures, financial terms and conditions, 
                and other relevant information for each nondepartmental 
                student financial assistance program are searchable and 
                accessible through the Federal student financial aid 
                website in a manner that is simple and understandable 
                for students and the students' families; and
                    ``(B) the website displaying the information 
                described in subparagraph (A) includes a link to the 
                National Database on Financial Assistance for the Study 
                of Science, Technology, Engineering, and Mathematics 
                pursuant to paragraph (4), and the information on 
                military benefits under subsection (f), once such 
                Database and information are available.
            ``(3) Nondepartmental student financial assistance 
        programs.--The Secretary shall request all Federal departments 
        and agencies to provide the information described in paragraph 
        (2)(A), and each Federal department or agency shall--
                    ``(A) promptly respond to surveys or other requests 
                from the Secretary for the information described in such 
                paragraph; and
                    ``(B) identify for the Secretary any nondepartmental 
                student financial assistance program operated, 
                sponsored, or supported by such Federal department or 
                agency.
            ``(4) National stem database.--
                    ``(A) <<NOTE: Web site.>>  In general.--The 
                Secretary shall establish and maintain, on the website 
                described in subsection (e)(3), a National Database on 
                Financial Assistance for the Study of Science, 
                Technology, Engineering, and Mathematics (in this 
                paragraph referred to as the `STEM Database'). The STEM 
                Database shall consist of information on scholarships, 
                fellowships, and other programs of Federal, State, 
                local, and, to the maximum extent practicable, private 
                financial assistance available for the study of science, 
                technology, engineering, or mathematics at the 
                postsecondary and postbaccalaureate levels.
                    ``(B) Database contents.--The information maintained 
                on the STEM Database shall be displayed on the website 
                in the following manner:
                          ``(i) Separate information.--The STEM Database 
                      shall provide separate information for each of the 
                      fields of science, technology, engineering, and 
                      mathematics, and for postsecondary and 
                      postbaccalaureate programs of financial 
                      assistance.
                          ``(ii) Information on targeted assistance.--
                      The STEM Database shall provide specific 
                      information on any program of financial assistance 
                      that is targeted to individuals based on financial 
                      need, merit, or student characteristics.

[[Page 122 STAT. 3097]]

                          ``(iii) Contact and website information.--The 
                      STEM Database shall provide--
                                    ``(I) standard contact information 
                                that an interested person may use to 
                                contact a sponsor of any program of 
                                financial assistance included in the 
                                STEM Database; and
                                    ``(II) if such sponsor maintains a 
                                public website, a link to the website.
                          ``(iv) Search and match capabilities.--The 
                      STEM Database shall--
                                    ``(I) have a search capability that 
                                permits an individual to search for 
                                information on the basis of each 
                                category of the information provided 
                                through the STEM Database and on the 
                                basis of combinations of categories of 
                                the information provided, including--
                                            ``(aa) whether the financial 
                                        assistance is need- or merit-
                                        based; and
                                            ``(bb) by relevant academic 
                                        majors; and
                                    ``(II) have a match capability 
                                that--
                                            ``(aa) searches the STEM 
                                        Database for all financial 
                                        assistance opportunities for 
                                        which an individual may be 
                                        qualified to apply, based on the 
                                        student characteristics provided 
                                        by such individual; and
                                            ``(bb) provides information 
                                        to an individual for only those 
                                        opportunities for which such 
                                        individual is qualified, based 
                                        on the student characteristics 
                                        provided by such individual.
                          ``(v) Recommendation and disclaimer.--The STEM 
                      Database shall provide, to the users of the STEM 
                      Database--
                                    ``(I) a recommendation that students 
                                and families should carefully review all 
                                of the application requirements prior to 
                                applying for any aid or program of 
                                student financial assistance; and
                                    ``(II) a disclaimer that the non-
                                Federal programs of student financial 
                                assistance presented in the STEM 
                                Database are not provided or endorsed by 
                                the Department or the Federal 
                                Government.
                    ``(C) Compilation of financial assistance 
                information.--In carrying out this paragraph, the 
                Secretary shall--
                          ``(i) consult with public and private sources 
                      of scholarships, fellowships, and other programs 
                      of student financial assistance; and
                          ``(ii) make easily available a process for 
                      such entities to provide regular and updated 
                      information about the scholarships, fellowships, 
                      or other programs of student financial assistance.
                    ``(D) Contract authorized.--In carrying out the 
                requirements of this paragraph, the Secretary is 
                authorized to enter into a contract with a private 
                entity with demonstrated expertise in creating and 
                maintaining databases such as the one required under 
                this paragraph, under which contract the entity shall 
                furnish, and regularly

[[Page 122 STAT. 3098]]

                update, all of the information required to be maintained 
                on the STEM Database.
            ``(5) Dissemination of information.--The Secretary shall 
        take such actions, on an ongoing basis, as may be necessary to 
        disseminate information under this subsection and to encourage 
        the use of the information by interested parties, including 
        sending notices to secondary schools and institutions of higher 
        education.''.

    (c) No User Fees for Department Financial Aid Websites.--Section 131 
(as amended by subsection (b)) (20 U.S.C. 1015) is further amended by 
adding at the end the following:
    ``(h) No User Fees for Department Financial Aid Websites.--No fee 
shall be charged to any individual to access--
            ``(1) a database or website of the Department that provides 
        information about higher education programs or student financial 
        assistance, including the College Navigator website (or 
        successor website) and the websites and databases described in 
        this section and section 132; or
            ``(2) information about higher education programs or student 
        financial assistance available through a database or website of 
        the Department.''.
SEC. 111. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.

    Part C of title I (20 U.S.C. 1015) is amended by adding at the end 
the following:
``SEC. 132. <<NOTE: 20 USC 1015a.>>  TRANSPARENCY IN COLLEGE 
                        TUITION FOR CONSUMERS.

    ``(a) Definitions.--In this section:
            ``(1) College navigator website.--The term `College 
        Navigator website' means the College Navigator website operated 
        by the Department and includes any successor website.
            ``(2) Cost of attendance.--The term `cost of attendance' 
        means the average annual cost of tuition and fees, room and 
        board, books, supplies, and transportation for an institution of 
        higher education for a first-time, full-time undergraduate 
        student enrolled in the institution.
            ``(3) Net price.--The term `net price' means the average 
        yearly price actually charged to first-time, full-time 
        undergraduate students receiving student aid at an institution 
        of higher education after deducting such aid, which shall be 
        determined by calculating the difference between--
                    ``(A) the institution's cost of attendance for the 
                year for which the determination is made; and
                    ``(B) the quotient of--
                          ``(i) the total amount of need-based grant aid 
                      and merit-based grant aid, from Federal, State, 
                      and institutional sources, provided to such 
                      students enrolled in the institution for such 
                      year; and
                          ``(ii) the total number of such students 
                      receiving such need-based grant aid or merit-based 
                      grant aid for such year.
            ``(4) Tuition and fees.--The term `tuition and fees' means 
        the average annual cost of tuition and fees for an institution 
        of higher education for first-time, full-time undergraduate 
        students enrolled in the institution.

    ``(b) Calculations for Public Institutions.--In making the 
calculations regarding cost of attendance, net price, and tuition and 
fees under this section with respect to a public institution

[[Page 122 STAT. 3099]]

of higher education, the Secretary shall calculate the cost of 
attendance, net price, and tuition and fees at such institution in the 
manner described in subsection (a), except that--
            ``(1) the cost of attendance, net price, and tuition and 
        fees shall be calculated for first-time, full-time undergraduate 
        students enrolled in the institution who are residents of the 
        State in which such institution is located; and
            ``(2) in determining the net price, the average need-based 
        grant aid and merit-based grant aid described in subsection 
        (a)(3)(B) shall be calculated based on the average total amount 
        of such aid received by first-time, full-time undergraduate 
        students who are residents of the State in which such 
        institution is located, divided by the total number of such 
        resident students receiving such need-based grant aid or merit-
        based grant aid at such institution.

    ``(c) College Affordability and Transparency Lists.--
            ``(1) Availability of lists.--Beginning <<NOTE: Effective 
        date. Public information. Web site.>>  July 1, 2011, the 
        Secretary shall make publicly available on the College Navigator 
        website, in a manner that is sortable and searchable by State, 
        the following:
                    ``(A) A list of the five percent of institutions in 
                each category described in subsection (d) that have the 
                highest tuition and fees for the most recent academic 
                year for which data are available.
                    ``(B) A list of the five percent of institutions in 
                each such category that have the highest net price for 
                the most recent academic year for which data are 
                available.
                    ``(C) A list of the five percent of institutions in 
                each such category that have the largest increase, 
                expressed as a percentage change, in tuition and fees 
                over the most recent three academic years for which data 
                are available, using the first academic year of the 
                three-year period as the base year to compute such 
                percentage change.
                    ``(D) A list of the five percent of institutions in 
                each such category that have the largest increase, 
                expressed as a percentage change, in net price over the 
                most recent three academic years for which data are 
                available, using the first academic year of the three-
                year period as the base year to compute such percentage 
                change.
                    ``(E) A list of the ten percent of institutions in 
                each such category that have the lowest tuition and fees 
                for the most recent academic year for which data are 
                available.
                    ``(F) A list of the ten percent of institutions in 
                each such category that have the lowest net price for 
                the most recent academic year for which data are 
                available.
            ``(2) Annual updates.--The Secretary shall annually update 
        the lists described in paragraph (1) on the College Navigator 
        website.

    ``(d) Categories of Institutions.--The lists described in subsection 
(c)(1) shall be compiled according to the following categories of 
institutions that participate in programs under title IV:
            ``(1) Four-year public institutions of higher education.
            ``(2) Four-year private, nonprofit institutions of higher 
        education.
            ``(3) Four-year private, for-profit institutions of higher 
        education.
            ``(4) Two-year public institutions of higher education.

[[Page 122 STAT. 3100]]

            ``(5) Two-year private, nonprofit institutions of higher 
        education.
            ``(6) Two-year private, for-profit institutions of higher 
        education.
            ``(7) Less than two-year public institutions of higher 
        education.
            ``(8) Less than two-year private, nonprofit institutions of 
        higher education.
            ``(9) Less than two-year private, for-profit institutions of 
        higher education.

    ``(e) Reports by Institutions.--
            ``(1) Report to secretary.--If an institution of higher 
        education is included on a list described in subparagraph (C) or 
        (D) of subsection (c)(1), the institution shall submit to the 
        Secretary a report containing the following information:
                    ``(A) A description of the major areas in the 
                institution's budget with the greatest cost increases.
                    ``(B) An explanation of the cost increases described 
                in subparagraph (A).
                    ``(C) A description of the steps the institution 
                will take toward the goal of reducing costs in the areas 
                described in subparagraph (A).
                    ``(D) In the case of an institution that is included 
                on the same list under subparagraph (C) or (D) of 
                subsection (c)(1) for two or more consecutive years, a 
                description of the progress made on the steps described 
                in subparagraph (C) of this paragraph that were included 
                in the institution's report for the previous year.
                    ``(E) If the determination of any cost increase 
                described in subparagraph (A) is not within the 
                exclusive control of the institution--
                          ``(i) an explanation of the extent to which 
                      the institution participates in determining such 
                      cost increase;
                          ``(ii) the identification of the agency or 
                      instrumentality of State government responsible 
                      for determining such cost increase; and
                          ``(iii) any other information the institution 
                      considers relevant to the report.
            ``(2) Information to the public.--The Secretary shall--
                    ``(A) issue an annual report that summarizes all of 
                the reports by institutions required under paragraph (1) 
                to the authorizing committees; and
                    ``(B) publish such report on the College Navigator 
                website.

    ``(f) Exemptions.--
            ``(1) In general.--An institution shall not be placed on a 
        list described in subparagraph (C) or (D) of subsection (c)(1), 
        and shall not be subject to the reporting required under 
        subsection (e), if the dollar amount of the institution's 
        increase in tuition and fees, or net price, as applicable, is 
        less than $600 for the three-year period described in such 
        subparagraph.
            ``(2) Update.--Beginning <<NOTE: Effective 
        date. Deadline.>>  in 2014, and every three years thereafter, 
        the Secretary shall update the dollar amount described in 
        paragraph (1) based on annual increases in inflation, using the 
        Consumer Price Index for each of the three most recent preceding 
        years.

[[Page 122 STAT. 3101]]

    ``(g) State Higher Education Spending Chart.--
The <<NOTE: Reports. Web site.>>  Secretary shall annually report on the 
College Navigator website, in charts for each State, comparisons of--
            ``(1) the percentage change in spending by such State per 
        full-time equivalent student at all public institutions of 
        higher education in such State, for each of the five most recent 
        preceding academic years;
            ``(2) the percentage change in tuition and fees for such 
        students for all public institutions of higher education in such 
        State for each of the five most recent preceding academic years; 
        and
            ``(3) the percentage change in the total amount of need-
        based aid and merit-based aid provided by such State to full-
        time students enrolled in the public institutions of higher 
        education in the State for each of the five most recent 
        preceding academic years.

    ``(h) Net Price Calculator.--
            ``(1) Development of net price calculator.--
        Not <<NOTE: Deadline.>>  later than one year after the date of 
        enactment of the Higher Education Opportunity Act, the Secretary 
        shall, in consultation with institutions of higher education and 
        other appropriate experts, develop a net price calculator to 
        help current and prospective students, families, and other 
        consumers estimate the individual net price of an institution of 
        higher education for a student. The calculator shall be 
        developed in a manner that enables current and prospective 
        students, families, and consumers to determine an estimate of a 
        current or prospective student's individual net price at a 
        particular institution.
            ``(2) Calculation of individual net price.--For purposes of 
        this subsection, an individual net price of an institution of 
        higher education shall be calculated in the same manner as the 
        net price of such institution is calculated under subsection 
        (a)(3), except that the cost of attendance and the amount of 
        need-based and merit-based aid available shall be calculated for 
        the individual student as much as practicable.
            ``(3) <<NOTE: Deadline. Web site.>>  Use of net price 
        calculator by institutions.--Not later than two years after the 
        date on which the Secretary makes the calculator developed under 
        paragraph (1) available to institutions of higher education, 
        each institution of higher education that receives Federal funds 
        under title IV shall make publicly available on the 
        institution's website a net price calculator to help current and 
        prospective students, families, and other consumers estimate a 
        student's individual net price at such institution of higher 
        education. Such calculator may be a net price calculator 
        developed--
                    ``(A) by the Department pursuant to paragraph (1); 
                or
                    ``(B) by the institution of higher education, if the 
                institution's calculator includes, at a minimum, the 
                same data elements included in the calculator developed 
                under paragraph (1).
            ``(4) Disclaimer.--Estimates of an individual net price 
        determined using a net price calculator required under paragraph 
        (3) shall be accompanied by a clear and conspicuous notice--
                    ``(A) stating that the estimate--

[[Page 122 STAT. 3102]]

                          ``(i) does not represent a final 
                      determination, or actual award, of financial 
                      assistance;
                          ``(ii) shall not be binding on the Secretary, 
                      the institution of higher education, or the State; 
                      and
                          ``(iii) may change;
                    ``(B) stating that the student must complete the 
                Free Application for Federal Student Aid described in 
                section 483 in order to be eligible for, and receive, an 
                actual financial aid award that includes Federal grant, 
                loan, or work-study assistance under title IV; and
                    ``(C) including a link to the website of the 
                Department that allows students to access the Free 
                Application for Federal Student Aid described in section 
                483.

    ``(i) Consumer Information.--
            ``(1) <<NOTE: Deadline. Public information. Web site.>>  
        Availability of title iv institution information.--Not later 
        than one year after the date of enactment of the Higher 
        Education Opportunity Act, the Secretary shall make publicly 
        available on the College Navigator website, in simple and 
        understandable terms, the following information about each 
        institution of higher education that participates in programs 
        under title IV, for the most recent academic year for which 
        satisfactory data are available:
                    ``(A) A statement of the institution's mission.
                    ``(B) The total number of undergraduate students who 
                applied to, were admitted by, and enrolled in the 
                institution.
                    ``(C) For institutions that require SAT or ACT 
                scores to be submitted, the reading, writing, 
                mathematics, and combined scores on the SAT or ACT, as 
                applicable, for the middle 50 percent range of the 
                institution's freshman class.
                    ``(D) The number of first-time, full-time, and part-
                time students enrolled at the institution, at the 
                undergraduate and (if applicable) graduate levels.
                    ``(E) The number of degree- or certificate-seeking 
                undergraduate students enrolled at the institution who 
                have transferred from another institution.
                    ``(F) The percentages of male and female 
                undergraduate students enrolled at the institution.
                    ``(G) Of the first-time, full-time, degree- or 
                certificate-seeking undergraduate students enrolled at 
                the institution--
                          ``(i) the percentage of such students who are 
                      from the State in which the institution is 
                      located;
                          ``(ii) the percentage of such students who are 
                      from other States; and
                          ``(iii) the percentage of such students who 
                      are international students.
                    ``(H) The percentages of first-time, full-time, 
                degree- or certificate-seeking students enrolled at the 
                institution, disaggregated by race and ethnic 
                background.
                    ``(I) The percentage of undergraduate students 
                enrolled at the institution who are formally registered 
                with the office of disability services of the 
                institution (or the equivalent office) as students with 
                disabilities, except that if such percentage is three 
                percent or less, the institution shall report `three 
                percent or less'.

[[Page 122 STAT. 3103]]

                    ``(J) The percentages of first-time, full-time, 
                degree- or certificate-seeking undergraduate students 
                enrolled at the institution who obtain a degree or 
                certificate within--
                          ``(i) the normal time for completion of, or 
                      graduation from, the student's program;
                          ``(ii) 150 percent of the normal time for 
                      completion of, or graduation from, the student's 
                      program; and
                          ``(iii) 200 percent of the normal time for 
                      completion of, or graduation from, the student's 
                      program;
                    ``(K) The number of certificates, associate degrees, 
                baccalaureate degrees, master's degrees, professional 
                degrees, and doctoral degrees awarded by the 
                institution.
                    ``(L) The undergraduate major areas of study at the 
                institution with the highest number of degrees awarded.
                    ``(M) The student-faculty ratio, the number of full-
                time and part-time faculty, and the number of graduate 
                assistants with primarily instructional 
                responsibilities, at the institution.
                    ``(N)(i) The cost of attendance for first-time, 
                full-time undergraduate students enrolled in the 
                institution who live on campus;
                    ``(ii) the cost of attendance for first-time, full-
                time undergraduate students enrolled in the institution 
                who live off campus; and
                    ``(iii) in the case of a public institution of 
                higher education and notwithstanding subsection (b)(1), 
                the costs described in clauses (i) and (ii), for--
                          ``(I) first-time, full-time students enrolled 
                      in the institution who are residents of the State 
                      in which the institution is located; and
                          ``(II) first-time, full-time students enrolled 
                      in the institution who are not residents of such 
                      State.
                    ``(O) The average annual grant amount (including 
                Federal, State, and institutional aid) awarded to a 
                first-time, full-time undergraduate student enrolled at 
                the institution who receives financial aid.
                    ``(P) The average annual amount of Federal student 
                loans provided through the institution to undergraduate 
                students enrolled at the institution.
                    ``(Q) The total annual grant aid awarded to 
                undergraduate students enrolled at the institution, from 
                the Federal Government, a State, the institution, and 
                other sources known by the institution.
                    ``(R) The percentage of first-time, full-time 
                undergraduate students enrolled at the institution 
                receiving Federal, State, and institutional grants, 
                student loans, and any other type of student financial 
                assistance known by the institution, provided publicly 
                or through the institution, such as Federal work-study 
                funds.
                    ``(S) The number of students enrolled at the 
                institution receiving Federal Pell Grants.
                    ``(T) The institution's cohort default rate, as 
                defined under section 435(m).
                    ``(U) The information on campus safety required to 
                be collected under section 485(i).
                    ``(V) A link to the institution's website that 
                provides, in an easily accessible manner, the following 
                information:

[[Page 122 STAT. 3104]]

                          ``(i) Student activities offered by the 
                      institution.
                          ``(ii) Services offered by the institution for 
                      individuals with disabilities.
                          ``(iii) Career and placement services offered 
                      by the institution to students during and after 
                      enrollment.
                          ``(iv) Policies of the institution related to 
                      transfer of credit from other institutions.
                    ``(W) A link to the appropriate section of the 
                Bureau of Labor Statistics website that provides 
                information on regional data on starting salaries in all 
                major occupations.
                    ``(X) Information required to be submitted under 
                paragraph (4) and a link to the institution pricing 
                summary page described in paragraph (5).
                    ``(Y) In the case of an institution that was 
                required to submit a report under subsection (e)(1), a 
                link to such report.
                    ``(Z) The availability of alternative tuition plans, 
                which may include guaranteed tuition plans.
            ``(2) Annual updates.--The <<NOTE: Web site.>>  Secretary 
        shall annually update the information described in paragraph (1) 
        on the College Navigator website.
            ``(3) Consultation.--The Secretary shall regularly consult 
        with current and prospective college students, family members of 
        such students, institutions of higher education, and other 
        experts to improve the usefulness and relevance of the College 
        Navigator website, with respect to the presentation of the 
        consumer information collected in paragraph (1).
            ``(4) Data collection.--The Commissioner for Education 
        Statistics shall continue to update and improve the Integrated 
        Postsecondary Education Data System (referred to in this section 
        as `IPEDS'), including the reporting of information by 
        institutions and the timeliness of the data collected.
            ``(5) Institution pricing summary page.--
                    ``(A) Availability of list of participating 
                institutions.--The Secretary <<NOTE: Web site.>>  shall 
                make publicly available on the College Navigator website 
                in a sortable and searchable format a list of all 
                institutions of higher education that participate in 
                programs under title IV, which list shall, for each 
                institution, include the following:
                          ``(i) The tuition and fees for each of the 
                      three most recent academic years for which data 
                      are available.
                          ``(ii) The net price for each of the three 
                      most recent available academic years for which 
                      data are available.
                          ``(iii)(I) <<NOTE: Time period.>>  During the 
                      period beginning July 1, 2010, and ending June 30, 
                      2013, the net price for students receiving Federal 
                      student financial aid under title IV, 
                      disaggregated by the income categories described 
                      in paragraph (6), for the most recent academic 
                      year for which data are available.
                          ``(II) <<NOTE: Effective date.>>  Beginning 
                      July 1, 2013, the net price for students receiving 
                      Federal student financial aid under title IV, 
                      disaggregated by the income categories described 
                      in paragraph (6), for each of the three most 
                      recent academic years for which data are 
                      available.

[[Page 122 STAT. 3105]]

                          ``(iv) The average annual percentage change 
                      and average annual dollar change in such 
                      institution's tuition and fees for each of the 
                      three most recent academic years for which data 
                      are available.
                          ``(v) The average annual percentage change and 
                      average annual dollar change in such institution's 
                      net price for each of the three most recent 
                      preceding academic years for which data are 
                      available.
                          ``(vi) A link to the webpage on the College 
                      Navigator website that provides the information 
                      described in paragraph (1) for the institution.
                    ``(B) Annual updates.--The <<NOTE: Web site.>>  
                Secretary shall annually update the lists described in 
                subparagraph (A) on the College Navigator website.
            ``(6) Income categories.--
                    ``(A) In general.--For <<NOTE: Applicability.>>  
                purposes of reporting the information required under 
                this subsection, the following income categories shall 
                apply for students who receive Federal student financial 
                aid under title IV:
                          ``(i) $0-30,000.
                          ``(ii) $30,001-48,000.
                          ``(iii) $48,001-75,000.
                          ``(iv) $75,001-110,000.
                          ``(v) $110,001 and more.
                    ``(B) Adjustment.--The Secretary may adjust the 
                income categories listed in subparagraph (A) using the 
                Consumer Price Index if the Secretary determines such 
                adjustment is necessary.

    ``(j) Multi-Year Tuition Calculator.--
            ``(1) <<NOTE: Deadline.>>  Development of multi-year tuition 
        calculator.--Not later than one year after the date of enactment 
        of the Higher Education Opportunity Act, the Secretary shall, in 
        consultation with institutions of higher education, financial 
        planners, and other appropriate experts, develop a multi-year 
        tuition calculator to help current and prospective students, 
        families of such students, and other consumers estimate the 
        amount of tuition an individual may pay to attend an institution 
        of higher education in future years.
            ``(2) Calculation of multi-year tuition.--The multi-year 
        tuition calculator described in paragraph (1) shall--
                    ``(A) allow an individual to select an institution 
                of higher education for which the calculation shall be 
                made;
                    ``(B) calculate an estimate of tuition and fees for 
                each year of the normal duration of the program of study 
                at such institution by--
                          ``(i) using the tuition and fees for such 
                      institution, as reported under subsection 
                      (i)(5)(A)(i), for the most recent academic year 
                      for which such data are reported; and
                          ``(ii) determining an estimated annual 
                      percentage change for each year for which the 
                      calculation is made, based on the annual 
                      percentage change in such institution's tuition 
                      and fees, as reported under subsection 
                      (i)(5)(A)(iv), for the most recent three-year 
                      period for which such data are reported;
                    ``(C) calculate an estimate of the total amount of 
                tuition and fees to complete a program of study at such 
                institution,

[[Page 122 STAT. 3106]]

                based on the normal duration of such program, using the 
                estimate calculated under subparagraph (B) for each year 
                of the program of study;
                    ``(D) provide the individual with the option to 
                replace the estimated annual percentage change described 
                in subparagraph (B)(ii) with an alternative annual 
                percentage change specified by the individual, and 
                calculate an estimate of tuition and fees for each year 
                and an estimate of the total amount of tuition and fees 
                using the alternative percentage change;
                    ``(E) in the case of an institution that offers a 
                multi-year tuition guarantee program, allow the 
                individual to have the estimates of tuition and fees 
                described in subparagraphs (B) and (C) calculated based 
                on the provisions of such guarantee program for the 
                tuition and fees charged to a student, or cohort of 
                students, enrolled for the duration of the program of 
                study; and
                    ``(F) include any other features or information 
                determined to be appropriate by the Secretary.
            ``(3) Availability and comparison.--The <<NOTE: Web site.>>  
        multi-year tuition calculator described in paragraph (1) shall 
        be available on the College Navigator website and shall allow 
        current and prospective students, families of such students, and 
        consumers to compare information and estimates under this 
        subsection for multiple institutions of higher education.
            ``(4) Disclaimer.--Each calculation of estimated tuition and 
        fees made using the multi-year tuition calculator described in 
        paragraph (1) shall be accompanied by a clear and conspicuous 
        notice--
                    ``(A) stating that the calculation--
                          ``(i) is only an estimate and not a guarantee 
                      of the actual amount the student may be charged;
                          ``(ii) is not binding on the Secretary, the 
                      institution of higher education, or the State; and
                          ``(iii) may change, subject to the 
                      availability of financial assistance, State 
                      appropriations, and other factors;
                    ``(B) stating that the student must complete the 
                Free Application for Federal Student Aid described in 
                section 483 in order to be eligible for, and receive, an 
                actual financial aid award that includes Federal grant, 
                loan, or work-study assistance under title IV; and
                    ``(C) including a link to the website of the 
                Department that allows students to access the Free 
                Application for Federal Student Aid described in section 
                483.

    ``(k) Student Aid Recipient Survey.--
            ``(1) Survey required.--The Secretary, acting through the 
        Commissioner for Education Statistics, shall conduct, on a 
        State-by-State basis, a survey of recipients of Federal student 
        financial aid under title IV--
                    ``(A) to identify the population of students 
                receiving such Federal student financial aid;
                    ``(B) to describe the income distribution and other 
                socioeconomic characteristics of recipients of such 
                Federal student financial aid;

[[Page 122 STAT. 3107]]

                    ``(C) to describe the combinations of aid from 
                Federal, State, and private sources received by such 
                recipients from all income categories;
                    ``(D) to describe the--
                          ``(i) debt burden of such loan recipients, and 
                      their capacity to repay their education debts; and
                          ``(ii) the impact of such debt burden on the 
                      recipients' course of study and post-graduation 
                      plans;
                    ``(E) to describe the impact of the cost of 
                attendance of postsecondary education in the 
                determination by students of what institution of higher 
                education to attend; and
                    ``(F) to describe how the costs of textbooks and 
                other instructional materials affect the costs of 
                postsecondary education for students.
            ``(2) Frequency.--The survey shall be conducted on a regular 
        cycle and not less often than once every four years.
            ``(3) Survey design.--The survey shall be representative of 
        students from all types of institutions, including full-time and 
        part-time students, undergraduate, graduate, and professional 
        students, and current and former students.
            ``(4) <<NOTE: Public information.>>  Dissemination.--The 
        Commissioner for Education Statistics shall disseminate to the 
        public, in printed and electronic form, the information 
        resulting from the survey.

    ``(l) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out this section.''.
SEC. 112. TEXTBOOK INFORMATION.

    (a) Amendment.--Part C of title I (20 U.S.C. 1015) is further 
amended by adding after section 132 (as added by section 111 of this 
Act) the following new section:
``SEC. 133. <<NOTE: 20 USC 1015b.>>  TEXTBOOK INFORMATION.

    ``(a) Purpose and Intent.--The purpose of this section is to ensure 
that students have access to affordable course materials by decreasing 
costs to students and enhancing transparency and disclosure with respect 
to the selection, purchase, sale, and use of course materials. It is the 
intent of this section to encourage all of the involved parties, 
including faculty, students, administrators, institutions of higher 
education, bookstores, distributors, and publishers, to work together to 
identify ways to decrease the cost of college textbooks and supplemental 
materials for students while supporting the academic freedom of faculty 
members to select high quality course materials for students.
    ``(b) Definitions.--In this section:
            ``(1) Bundle.--The term `bundle' means one or more college 
        textbooks or other supplemental materials that may be packaged 
        together to be sold as course materials for one price.
            ``(2) College textbook.--The term `college textbook' means a 
        textbook or a set of textbooks, used for, or in conjunction 
        with, a course in postsecondary education at an institution of 
        higher education.
            ``(3) Course schedule.--The term `course schedule' means a 
        listing of the courses or classes offered by an institution of 
        higher education for an academic period, as defined by the 
        institution.
            ``(4) Custom textbook.--The term `custom textbook'--

[[Page 122 STAT. 3108]]

                    ``(A) means a college textbook that is compiled by a 
                publisher at the direction of a faculty member or other 
                person or adopting entity in charge of selecting course 
                materials at an institution of higher education; and
                    ``(B) may include, alone or in combination, items 
                such as selections from original instructor materials, 
                previously copyrighted publisher materials, copyrighted 
                third-party works, and elements unique to a specific 
                institution, such as commemorative editions.
            ``(5) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the term 
        in section 102.
            ``(6) Integrated textbook.--The term `integrated textbook' 
        means a college textbook that is--
                    ``(A) combined with materials developed by a third 
                party and that, by third-party contractual agreement, 
                may not be offered by publishers separately from the 
                college textbook with which the materials are combined; 
                or
                    ``(B) combined with other materials that are so 
                interrelated with the content of the college textbook 
                that the separation of the college textbook from the 
                other materials would render the college textbook 
                unusable for its intended purpose.
            ``(7) Publisher.--The term `publisher' means a publisher of 
        college textbooks or supplemental materials involved in or 
        affecting interstate commerce.
            ``(8) Substantial content.--The term `substantial content' 
        means parts of a college textbook such as new chapters, new 
        material covering additional eras of time, new themes, or new 
        subject matter.
            ``(9) Supplemental material.--The term `supplemental 
        material' means educational material developed to accompany a 
        college textbook that--
                    ``(A) may include printed materials, computer disks, 
                website access, and electronically distributed 
                materials; and
                    ``(B) is not being used as a component of an 
                integrated textbook.

    ``(c) Publisher Requirements.--
            ``(1) College textbook pricing information.--When a 
        publisher provides a faculty member or other person or adopting 
        entity in charge of selecting course materials at an institution 
        of higher education receiving Federal financial assistance with 
        information regarding a college textbook or supplemental 
        material, the publisher shall include, with any such information 
        and in writing (which may include electronic communications), 
        the following:
                    ``(A) The price at which the publisher would make 
                the college textbook or supplemental material available 
                to the bookstore on the campus of, or otherwise 
                associated with, such institution of higher education 
                and, if available, the price at which the publisher 
                makes the college textbook or supplemental material 
                available to the public.
                    ``(B) The copyright dates of the three previous 
                editions of such college textbook, if any.
                    ``(C) A description of the substantial content 
                revisions made between the current edition of the 
                college textbook or supplemental material and the 
                previous edition, if any.

[[Page 122 STAT. 3109]]

                    ``(D)(i) Whether the college textbook or 
                supplemental material is available in any other format, 
                including paperback and unbound; and
                    ``(ii) for each other format of the college textbook 
                or supplemental material, the price at which the 
                publisher would make the college textbook or 
                supplemental material in the other format available to 
                the bookstore on the campus of, or otherwise associated 
                with, such institution of higher education and, if 
                available, the price at which the publisher makes such 
                other format of the college textbook or supplemental 
                material available to the public.
            ``(2) Unbundling of college textbooks from supplemental 
        materials.--A publisher that sells a college textbook and any 
        supplemental material accompanying such college textbook as a 
        single bundle shall also make available the college textbook and 
        each supplemental material as separate and unbundled items, each 
        separately priced.
            ``(3) Custom textbooks.--To the maximum extent practicable, 
        a publisher shall provide the information required under this 
        subsection with respect to the development and provision of 
        custom textbooks.

    ``(d) Provision of ISBN College Textbook Information in Course 
Schedules.--To the maximum extent practicable, each institution of 
higher education receiving Federal financial assistance shall--
            ``(1) <<NOTE: Web site.>>  disclose, on the institution's 
        Internet course schedule and in a manner of the institution's 
        choosing, the International Standard Book Number and retail 
        price information of required and recommended college textbooks 
        and supplemental materials for each course listed in the 
        institution's course schedule used for preregistration and 
        registration purposes, except that--
                    ``(A) if the International Standard Book Number is 
                not available for such college textbook or supplemental 
                material, then the institution shall include in the 
                Internet course schedule the author, title, publisher, 
                and copyright date for such college textbook or 
                supplemental material; and
                    ``(B) if the institution determines that the 
                disclosure of the information described in this 
                subsection is not practicable for a college textbook or 
                supplemental material, then the institution shall so 
                indicate by placing the designation `To Be Determined' 
                in lieu of the information required under this 
                subsection; and
            ``(2) if applicable, include on the institution's written 
        course schedule a notice that textbook information is available 
        on the institution's Internet course schedule, and the Internet 
        address for such schedule.

    ``(e) Availability of Information for College Bookstores.--An 
institution of higher education receiving Federal financial assistance 
shall make available to a college bookstore that is operated by, or in a 
contractual relationship or otherwise affiliated with, the institution, 
as soon as is practicable upon the request of such college bookstore, 
the most accurate information available regarding--
            ``(1) the institution's course schedule for the subsequent 
        academic period; and

[[Page 122 STAT. 3110]]

            ``(2) for each course or class offered by the institution 
        for the subsequent academic period--
                    ``(A) the information required by subsection (d)(1) 
                for each college textbook or supplemental material 
                required or recommended for such course or class;
                    ``(B) the number of students enrolled in such course 
                or class; and
                    ``(C) the maximum student enrollment for such course 
                or class.

    ``(f) Additional Information.--An institution disclosing the 
information required by subsection (d)(1) is encouraged to disseminate 
to students information regarding--
            ``(1) available institutional programs for renting textbooks 
        or for purchasing used textbooks;
            ``(2) available institutional guaranteed textbook buy-back 
        programs;
            ``(3) available institutional alternative content delivery 
        programs; or
            ``(4) other available institutional cost-saving strategies.

    ``(g) GAO Report.--Not later than July 1, 2013, the Comptroller 
General of the United States shall report to the authorizing committees 
on the implementation of this section by institutions of higher 
education, college bookstores, and publishers. The report shall 
particularly examine--
            ``(1) the availability of college textbook information on 
        course schedules;
            ``(2) the provision of pricing information to faculty of 
        institutions of higher education by publishers;
            ``(3) the use of bundled and unbundled material in the 
        college textbook marketplace, including the adoption of 
        unbundled materials by faculty and the use of integrated 
        textbooks by publishers; and
            ``(4) the implementation of this section by institutions of 
        higher education, including the costs and benefits to such 
        institutions and to students.

    ``(h) Rule of Construction.--Nothing in this section shall be 
construed to supercede the institutional autonomy or academic freedom of 
instructors involved in the selection of college textbooks, supplemental 
materials, and other classroom materials.
    ``(i) No Regulatory Authority.--The Secretary shall not promulgate 
regulations with respect to this section.''.
    (b) <<NOTE: 20 USC 1015b note.>>  Effective Date.--The amendment 
made by subsection (a) shall take effect on July 1, 2010.
SEC. 113. DATABASE OF STUDENT INFORMATION PROHIBITED.

    Part C of title I (20 U.S.C. 1015) is further amended by adding 
after section 133 (as added by section 112 of this Act) the following:
``SEC. 134. <<NOTE: 20 USC 1015c.>>  DATABASE OF STUDENT 
                        INFORMATION PROHIBITED.

    ``(a) Prohibition.--Except as described in subsection (b), nothing 
in this Act shall be construed to authorize the development, 
implementation, or maintenance of a Federal database of personally 
identifiable information on individuals receiving assistance under this 
Act, attending institutions receiving assistance under this Act, or 
otherwise involved in any studies or other collections of data under 
this Act, including a student unit record system, an education bar code 
system, or any other system that tracks individual students over time.

[[Page 122 STAT. 3111]]

    ``(b) Exception.--The provisions of subsection (a) shall not apply 
to a system (or a successor system) that--
            ``(1) is necessary for the operation of programs authorized 
        by title II, IV, or VII; and
            ``(2) was in use by the Secretary, directly or through a 
        contractor, as of the day before the date of enactment of the 
        Higher Education Opportunity Act.

    ``(c) State Databases.--Nothing in this Act shall prohibit a State 
or a consortium of States from developing, implementing, or maintaining 
State-developed databases that track individuals over time, including 
student unit record systems that contain information related to 
enrollment, attendance, graduation and retention rates, student 
financial assistance, and graduate employment outcomes.''.
SEC. 114. IN-STATE TUITION RATES FOR ARMED FORCES MEMBERS, 
                        SPOUSES, AND DEPENDENT CHILDREN.

    Part C of title I (20 U.S.C. 1015) is further amended by adding 
after section 134 (as added by section 113 of this Act) the following:
``SEC. 135. <<NOTE: 20 USC 1015d.>>  IN-STATE TUITION RATES FOR 
                        MEMBERS OF THE ARMED FORCES ON ACTIVE 
                        DUTY, SPOUSES, AND DEPENDENT CHILDREN.

    ``(a) Requirement.--In the case of a member of the armed forces who 
is on active duty for a period of more than 30 days and whose domicile 
or permanent duty station is in a State that receives assistance under 
this Act, such State shall not charge such member (or the spouse or 
dependent child of such member) tuition for attendance at a public 
institution of higher education in the State at a rate that is greater 
than the rate charged for residents of the State.
    ``(b) Continuation.--If a member of the armed forces (or the spouse 
or dependent child of a member) pays tuition at a public institution of 
higher education in a State at a rate determined by subsection (a), the 
provisions of subsection (a) shall continue to apply to such member, 
spouse, or dependent while continuously enrolled at that institution, 
notwithstanding a subsequent change in the permanent duty station of the 
member to a location outside the State.
    ``(c) Effective Date.--This section shall take effect at each public 
institution of higher education in a State that receives assistance 
under this Act for the first period of enrollment at such institution 
that begins after July 1, 2009.
    ``(d) Definitions.--In this section, the terms `armed forces' and 
`active duty for a period of more than 30 days' have the meanings given 
those terms in section 101 of title 10, United States Code.''.
SEC. 115. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT PROGRAM.

    Part C of title I of the Higher Education Act of 1965 (20 U.S.C. 
1015) is further amended by adding after section 135 (as added by 
section 114 of this Act) the following:

[[Page 122 STAT. 3112]]

``SEC. 136. <<NOTE: 20 USC 1015e.>>  STATE HIGHER EDUCATION 
                        INFORMATION SYSTEM PILOT PROGRAM.

    ``(a) Purpose.--It is the purpose of this section to carry out a 
pilot program to assist not more than five States to develop State-level 
postsecondary student data systems to--
            ``(1) improve the capacity of States and institutions of 
        higher education to generate more comprehensive and comparable 
        data, in order to develop better-informed educational policy at 
        the State level and to evaluate the effectiveness of 
        institutional performance while protecting the confidentiality 
        of students' personally identifiable information; and
            ``(2) identify how to best minimize the data-reporting 
        burden placed on institutions of higher education, particularly 
        smaller institutions, and to maximize and improve the 
        information institutions receive from the data systems, in order 
        to assist institutions in improving educational practice and 
        postsecondary outcomes.

    ``(b) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means--
            ``(1) a State higher education system; or
            ``(2) a consortium of State higher education systems, or a 
        consortium of individual institutions of higher education, that 
        is broadly representative of institutions in different sectors 
        and geographic locations.

    ``(c) Competitive Grants.--
            ``(1) Grants authorized.--The Secretary shall award grants, 
        on a competitive basis, to not more than five eligible entities 
        to enable the eligible entities to--
                    ``(A) design, test, and implement systems of 
                postsecondary student data that provide the maximum 
                benefits to States, institutions of higher education, 
                and State policymakers; and
                    ``(B) examine the costs and burdens involved in 
                implementing a State-level postsecondary student data 
                system.
            ``(2) Duration.--A grant awarded under this section shall be 
        for a period of not more than three years.

    ``(d) Application Requirements.--An eligible entity desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may reasonably require, including a description of--
            ``(1) how the eligible entity will ensure that student 
        privacy is protected and that individually identifiable 
        information about students, the students' achievements, and the 
        students' families remains confidential in accordance with 
        section 444 of the General Education Provisions Act (Family 
        Educational Rights and Privacy Act of 1974) (20 U.S.C. 1232g); 
        and
            ``(2) how the activities funded by the grant will be 
        supported after the three-year grant period.

    ``(e) Use of Funds.--A grant awarded under this section shall be 
used to--
            ``(1) design, develop, and implement the components of a 
        comprehensive postsecondary student data system with the 
        capacity to transmit student information within a State;
            ``(2) improve the capacity of institutions of higher 
        education to analyze and use student data;

[[Page 122 STAT. 3113]]

            ``(3) select and define common data elements, data quality, 
        and other elements that will enable the data system to--
                    ``(A) serve the needs of institutions of higher 
                education for institutional research and improvement;
                    ``(B) provide students and the students' families 
                with useful information for decision-making about 
                postsecondary education; and
                    ``(C) provide State policymakers with improved 
                information to monitor and guide efforts to improve 
                student outcomes and success in higher education;
            ``(4) estimate costs and burdens at the institutional level 
        for the reporting system for different types of institutions; 
        and
            ``(5) test the feasibility of protocols and standards for 
        maintaining data privacy and data access.

    ``(f) Evaluation; Reports.--Not later than six months after the end 
of the projects funded by grants awarded under this section, the 
Secretary shall--
            ``(1) conduct a comprehensive evaluation of the pilot 
        program authorized by this section; and
            ``(2) report the Secretary's findings, as well as 
        recommendations regarding the implementation of State-level 
        postsecondary student data systems, to the authorizing 
        committees.

    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary for 
fiscal year 2009 and each of the five succeeding fiscal years.''.
SEC. 116. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

    Part C of title I (20 U.S.C. 1015) is further amended by adding 
after section 136 (as added by section 115 of this Act) the following 
new section:
``SEC. 137. <<NOTE: 20 USC 1015f.>>  STATE COMMITMENT TO 
                        AFFORDABLE COLLEGE EDUCATION.

    ``(a) <<NOTE: Effective date.>>  Maintenance of Effort Required.--A 
State shall provide--
            ``(1) for public institutions of higher education in such 
        State for any academic year beginning on or after July 1, 2008, 
        an amount which is equal to or greater than the average amount 
        provided for non-capital and non-direct research and development 
        expenses or costs by such State to such institutions of higher 
        education during the five most recent preceding academic years 
        for which satisfactory data are available; and
            ``(2) for private institutions of higher education in such 
        State for any academic year beginning on or after July 1, 2008, 
        an amount which is equal to or greater than the average amount 
        provided for student financial aid for paying costs associated 
        with postsecondary education by such State to such institutions 
        during the five most recent preceding academic years for which 
        satisfactory data are available.

    ``(b) Adjustments for Biennial Appropriations.--The Secretary shall 
take into consideration any adjustments to the calculations under 
subsection (a) that may be required to accurately reflect funding levels 
for postsecondary education in States with biennial appropriation 
cycles.

[[Page 122 STAT. 3114]]

    ``(c) Waiver.--The Secretary shall waive the requirements of 
subsection (a), if the Secretary determines that such a waiver would be 
equitable due to exceptional or uncontrollable circumstances, such as a 
natural disaster or a precipitous and unforseen decline in the financial 
resources of a State or State educational agency, as appropriate.
    ``(d) Violation of Maintenance of Effort.--Notwithstanding any other 
provision of law, the Secretary shall withhold from any State that 
violates subsection (a) and does not receive a waiver pursuant to 
subsection (c) any amount that would otherwise be available to the State 
under section 781 until such State has made significant efforts to 
correct such violation.''.
SEC. 117. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF 
                        FEDERAL STUDENT FINANCIAL ASSISTANCE.

    Section 141 (20 U.S.C. 1018) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``operational'' 
                and inserting ``administrative and oversight''; and
                    (B) in paragraph (2)(D), by striking ``of the 
                operational functions'' and inserting ``and 
                administration'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                          (i) in subparagraph (A), by striking ``the 
                      information systems administered by the PBO, and 
                      other functions performed by the PBO'' and 
                      inserting ``the Federal student financial 
                      assistance programs authorized under title IV''; 
                      and
                          (ii) by striking subparagraph (C) and 
                      inserting the following:
                    ``(C) assist the Chief Operating Officer in 
                identifying goals for--
                          ``(i) the administration of the systems used 
                      to administer the Federal student financial 
                      assistance programs authorized under title IV; and
                          ``(ii) the updating of such systems to current 
                      technology.'';
                    (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A)--
                                    (I) by striking ``administration of 
                                the information and financial systems 
                                that support'' and inserting ``the 
                                administration of Federal''; and
                                    (II) by striking ``this title'' and 
                                inserting ``title IV'';
                          (ii) in subparagraph (A)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``of the delivery 
                                system for Federal student assistance'' 
                                and inserting ``for the Federal student 
                                financial assistance programs authorized 
                                under title IV'';
                                    (II) by striking clauses (i) and 
                                (ii) and inserting the following:
                          ``(i) the collection, processing, and 
                      transmission of data to students, institutions, 
                      lenders, State agencies, and other authorized 
                      parties;

[[Page 122 STAT. 3115]]

                          ``(ii) the design and technical specifications 
                      for software development and procurement for 
                      systems supporting the Federal student financial 
                      assistance programs authorized under title IV;'';
                                    (III) in clause (iii), by striking 
                                ``delivery'' and inserting 
                                ``administration'';
                                    (IV) in clause (iv)--
                                            (aa) by inserting ``the 
                                        Federal'' after ``supporting'';
                                            (bb) by striking ``under 
                                        this title'' and inserting 
                                        ``authorized under title IV''; 
                                        and
                                            (cc) by striking ``and'' 
                                        after the semicolon;
                                    (V) in clause (v), by striking 
                                ``systems that support those programs.'' 
                                and inserting ``the administration of 
                                the Federal student financial assistance 
                                programs authorized under title IV; 
                                and''; and
                                    (VI) by adding at the end the 
                                following:
                          ``(vi) ensuring the integrity of the Federal 
                      student financial assistance programs authorized 
                      under title IV.''; and
                          (iii) in subparagraph (B), by striking 
                      ``operations and services'' and inserting 
                      ``activities and functions''; and
            (3) in subsection (c)--
                    (A) in the subsection heading, by striking 
                ``Performance Plan and Report'' and inserting 
                ``Performance Plan, Report, and Briefing'';
                    (B) in paragraph (1)(C)--
                          (i) by striking ``this title'' each place the 
                      term appears and inserting ``under title IV'';
                          (ii) in clause (iii), by striking 
                      ``information and delivery''; and
                          (iii) in clause (iv)--
                                    (I) by striking ``Developing an'' 
                                and inserting ``Developing''; and
                                    (II) by striking ``delivery and 
                                information system'' and inserting 
                                ``systems'';
                    (C) in paragraph (2)--
                          (i) in subparagraph (A), by inserting ``the'' 
                      after ``PBO and''; and
                          (ii) in subparagraph (B), by striking 
                      ``Officer'' and inserting ``Officers'';
                    (D) in paragraph (3), by inserting ``students,'' 
                after ``consult with''; and
                    (E) by adding at the end the following:
            ``(4) Briefing on enforcement of student loan provisions.--
        The Secretary shall, upon request, provide a briefing to the 
        members of the authorizing committees on the steps the 
        Department has taken to ensure--
                    ``(A) the integrity of the student loan programs; 
                and
                    ``(B) that lenders and guaranty agencies are 
                adhering to the requirements of title IV.'';
            (4) in subsection (d)--
                    (A) in paragraph (1), by striking the second 
                sentence; and
                    (B) in paragraph (5)--

[[Page 122 STAT. 3116]]

                          (i) in subparagraph (B), by striking 
                      ``paragraph (2)'' and inserting ``paragraph (4)''; 
                      and
                          (ii) in subparagraph (C), by striking 
                      ``this'';
            (5) in subsection (f)--
                    (A) in paragraph (2), by striking ``to borrowers'' 
                and inserting ``to students, borrowers,''; and
                    (B) in paragraph (3)(A), by striking ``(1)(A)'' and 
                inserting ``(1)'';
            (6) in subsection (g)(3), by striking ``not more than 25'';
            (7) in subsection (h), by striking ``organizational 
        effectiveness'' and inserting ``effectiveness'';
            (8) by striking subsection (i);
            (9) by redesignating subsection (j) as subsection (i); and
            (10) in subsection (i) (as redesignated by paragraph (9)), 
        by striking ``, including transition costs''.
SEC. 118. PROCUREMENT FLEXIBILITY.

    Section 142 (20 U.S.C. 1018a) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                          (i) by striking ``for information systems 
                      supporting the programs authorized under title 
                      IV''; and
                          (ii) by striking ``and'' after the semicolon;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) through the Chief Operating Officer--
                    ``(A) to the maximum extent practicable, utilize 
                procurement systems that streamline operations, improve 
                internal controls, and enhance management; and
                    ``(B) assess the efficiency of such systems and 
                assess such systems' ability to meet PBO 
                requirements.'';
            (2) by striking subsection (c)(2) and inserting the 
        following:
            ``(2) Fee for service arrangements.--The Chief Operating 
        Officer shall, when appropriate and consistent with the purposes 
        of the PBO, acquire services related to the functions set forth 
        in section 141(b)(2) from any entity that has the capability and 
        capacity to meet the requirements set by the PBO. The Chief 
        Operating Officer is authorized to pay fees that are equivalent 
        to those paid by other entities to an organization that provides 
        services that meet the requirements of the PBO, as determined by 
        the Chief Operating Officer.'';
            (3) in subsection (d)(2)(B), by striking ``on Federal 
        Government contracts'';
            (4) in subsection (g)--
                    (A) in paragraph (4)(A)--
                          (i) in the subparagraph heading, by striking 
                      ``Sole source.--'' and inserting ``Single-source 
                      basis.--''; and
                          (ii) by striking ``sole-source'' and inserting 
                      ``single-source''; and
                    (B) in paragraph (7), by striking ``sole-source'' 
                and inserting ``single-source'';
            (5) in subsection (h)(2)(A), by striking ``sole-source'' and 
        inserting ``single-source''; and
            (6) in subsection (l), by striking paragraph (3) and 
        inserting the following:

[[Page 122 STAT. 3117]]

            ``(3) Single-source basis.--The term `single-source basis', 
        with respect to an award of a contract, means that the contract 
        is awarded to a source after soliciting an offer or offers from, 
        and negotiating with, only such source (although such source is 
        not the only source in the marketplace capable of meeting the 
        need) because such source is the most advantageous source for 
        purposes of the award.''.
SEC. 119. <<NOTE: 20 USC 1011m.>>  CERTIFICATION REGARDING THE USE 
                        OF CERTAIN FEDERAL FUNDS.

    (a) Prohibition.--No Federal funds received under the Higher 
Education Act of 1965 (20 U.S.C. 1001 et seq.) by an institution of 
higher education or other postsecondary educational institution may be 
used to pay any person for influencing or attempting to influence an 
officer or employee of any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any Federal action described in subsection (b).
    (b) Applicability.--The prohibition in subsection (a) applies with 
respect to the following Federal actions:
            (1) The awarding of any Federal contract.
            (2) The making of any Federal grant.
            (3) The making of any Federal loan.
            (4) The entering into of any Federal cooperative agreement.
            (5) The extension, continuation, renewal, amendment, or 
        modification of any Federal contract, grant, loan, or 
        cooperative agreement.

    (c) Lobbying and Earmarks.--No Federal student aid funding under the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) may be used to 
hire a registered lobbyist or pay any person or entity for securing an 
earmark.
    (d) Certification.--Each <<NOTE: Deadline.>>  institution of higher 
education or other postsecondary educational institution receiving 
Federal funding under the Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.), as a condition for receiving such funding, shall annually 
certify to the Secretary of Education that the requirements of 
subsections (a) through (c) have been met.

    (e) Actions To Implement and Enforce.--The Secretary of Education 
shall take such actions as are necessary to ensure that the provisions 
of this section are implemented and enforced.
SEC. 120. INSTITUTION AND LENDER REPORTING AND DISCLOSURE 
                        REQUIREMENTS.

    Title I (as amended by this title) (20 U.S.C. 1001 et seq.) is 
further amended by adding at the end the following:

  ``PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATION 
                                  LOANS

``SEC. 151. <<NOTE: 20 USC 1019.>>  DEFINITIONS.

    ``In this part:
            ``(1) Agent.--The term `agent' means an officer or employee 
        of a covered institution or an institution-affiliated 
        organization.
            ``(2) Covered institution.--The term `covered institution' 
        means any institution of higher education, as such term is

[[Page 122 STAT. 3118]]

        defined in section 102, that receives any Federal funding or 
        assistance.
            ``(3) Education loan.--The term `education loan' (except 
        when used as part of the term `private education loan') means--
                    ``(A) any loan made, insured, or guaranteed under 
                part B of title IV;
                    ``(B) any loan made under part D of title IV; or
                    ``(C) a private education loan.
            ``(4) Eligible lender.--The term `eligible lender' has the 
        meaning given such term in section 435(d).
            ``(5) Institution-affiliated organization.--The term 
        `institution-affiliated organization'--
                    ``(A) means any organization that--
                          ``(i) is directly or indirectly related to a 
                      covered institution; and
                          ``(ii) is engaged in the practice of 
                      recommending, promoting, or endorsing education 
                      loans for students attending such covered 
                      institution or the families of such students;
                    ``(B) may include an alumni organization, athletic 
                organization, foundation, or social, academic, or 
                professional organization, of a covered institution; and
                    ``(C) notwithstanding subparagraphs (A) and (B), 
                does not include any lender with respect to any 
                education loan secured, made, or extended by such 
                lender.
            ``(6) Lender.--The term `lender' (except when used as part 
        of the terms `eligible lender' and `private educational 
        lender')--
                    ``(A) means--
                          ``(i) in the case of a loan made, insured, or 
                      guaranteed under part B of title IV, an eligible 
                      lender;
                          ``(ii) in the case of any loan issued or 
                      provided to a student under part D of title IV, 
                      the Secretary; and
                          ``(iii) in the case of a private education 
                      loan, a private educational lender as defined in 
                      section 140 of the Truth in Lending Act; and
                    ``(B) includes any other person engaged in the 
                business of securing, making, or extending education 
                loans on behalf of the lender.
            ``(7) Officer.--The term `officer' includes a director or 
        trustee of a covered institution or institution-affiliated 
        organization, if such individual is treated as an employee of 
        such covered institution or institution-affiliated organization, 
        respectively.
            ``(8) Preferred lender arrangement.--The term `preferred 
        lender arrangement'--
                    ``(A) means an arrangement or agreement between a 
                lender and a covered institution or an institution-
                affiliated organization of such covered institution--
                          ``(i) under which a lender provides or 
                      otherwise issues education loans to the students 
                      attending such covered institution or the families 
                      of such students; and
                          ``(ii) that relates to such covered 
                      institution or such institution-affiliated 
                      organization recommending, promoting, or endorsing 
                      the education loan products of the lender; and
                    ``(B) does not include--

[[Page 122 STAT. 3119]]

                          ``(i) arrangements or agreements with respect 
                      to loans under part D of title IV; or
                          ``(ii) arrangements or agreements with respect 
                      to loans that originate through the auction pilot 
                      program under section 499(b).
            ``(9) Private education loan.--The term `private education 
        loan' has the meaning given the term in section 140 of the Truth 
        in Lending Act.
``SEC. 152. <<NOTE: 20 USC 1019a.>>  RESPONSIBILITIES OF COVERED 
                        INSTITUTIONS, INSTITUTION-AFFILIATED 
                        ORGANIZATIONS, AND LENDERS.

    ``(a) Responsibilities of Covered Institutions and Institution-
Affiliated Organizations.--
            ``(1) Disclosures by covered institutions and institution-
        affiliated organizations.--
                    ``(A) <<NOTE: Web site.>>  Preferred lender 
                arrangement disclosures.--In addition to the disclosures 
                required by subsections (a)(27) and (h) of section 487 
                (if applicable), a covered institution, or an 
                institution-affiliated organization of such covered 
                institution, that participates in a preferred lender 
                arrangement shall disclose--
                          ``(i) on such covered institution's or 
                      institution-affiliated organization's website and 
                      in all informational materials described in 
                      subparagraph (C) that describe or discuss 
                      education loans--
                                    ``(I) the maximum amount of Federal 
                                grant and loan aid under title IV 
                                available to students, in an easy to 
                                understand format;
                                    ``(II) the information required to 
                                be disclosed pursuant to section 
                                153(a)(2)(A)(i), for each type of loan 
                                described in section 151(3)(A) that is 
                                offered pursuant to a preferred lender 
                                arrangement of the institution or 
                                organization to students of the 
                                institution or the families of such 
                                students; and
                                    ``(III) a statement that such 
                                institution is required to process the 
                                documents required to obtain a loan 
                                under part B of title IV from any 
                                eligible lender the student selects; and
                          ``(ii) on such covered institution's or 
                      institution-affiliated organization's website and 
                      in all informational materials described in 
                      subparagraph (C) that describe or discuss private 
                      education loans--
                                    ``(I) in the case of a covered 
                                institution, the information that the 
                                Board of Governors of the Federal 
                                Reserve System requires to be disclosed 
                                under section 128(e)(11) of the Truth in 
                                Lending Act (15 U.S.C. 1638(e)(11)), for 
                                each type of private education loan 
                                offered pursuant to a preferred lender 
                                arrangement of the institution to 
                                students of the institution or the 
                                families of such students; and
                                    ``(II) in the case of an 
                                institution-affiliated organization of a 
                                covered institution, the information the 
                                Board of Governors of the Federal 
                                Reserve System requires to be disclosed 
                                under section 128(e)(1) of the Truth in 
                                Lending Act (15 U.S.C. 1638(e)(1)), for 
                                each type of private education loan

[[Page 122 STAT. 3120]]

                                offered pursuant to a preferred lender 
                                arrangement of the organization to 
                                students of such institution or the 
                                families of such students.
                    ``(B) Private education loan disclosures.--A covered 
                institution, or an institution-affiliated organization 
                of such covered institution, that provides information 
                regarding a private education loan from a lender to a 
                prospective borrower shall--
                          ``(i) provide the prospective borrower with 
                      the information the Board of Governors of the 
                      Federal Reserve System requires to be disclosed 
                      under section 128(e)(1) of the Truth in Lending 
                      Act (15 U.S.C. 1638(e)(1)) for such loan;
                          ``(ii) inform the prospective borrower that--
                                    ``(I) the prospective borrower may 
                                qualify for loans or other assistance 
                                under title IV; and
                                    ``(II) the terms and conditions of 
                                loans made, insured, or guaranteed under 
                                title IV may be more favorable than the 
                                provisions of private education loans; 
                                and
                          ``(iii) ensure that information regarding 
                      private education loans is presented in such a 
                      manner as to be distinct from information 
                      regarding loans that are made, insured, or 
                      guaranteed under title IV.
                    ``(C) Informational materials.--The informational 
                materials described in this subparagraph are 
                publications, mailings, or electronic messages or 
                materials that--
                          ``(i) are distributed to prospective or 
                      current students of a covered institution and 
                      families of such students; and
                          ``(ii) describe or discuss the financial aid 
                      opportunities available to students at an 
                      institution of higher education.
            ``(2) Use of institution name.--A covered institution, or an 
        institution-affiliated organization of such covered institution, 
        that enters into a preferred lender arrangement with a lender 
        regarding private education loans shall not agree to the 
        lender's use of the name, emblem, mascot, or logo of such 
        institution or organization, or other words, pictures, or 
        symbols readily identified with such institution or 
        organization, in the marketing of private education loans to 
        students attending such institution in any way that implies that 
        the loan is offered or made by such institution or organization 
        instead of the lender.
            ``(3) Use of lender name.--A covered institution, or an 
        institution-affiliated organization of such covered institution, 
        that enters into a preferred lender arrangement with a lender 
        regarding private education loans shall ensure that the name of 
        the lender is displayed in all information and documentation 
        related to such loans.

    ``(b) Lender Responsibilities.--
            ``(1) Disclosures by lenders.--
                    ``(A) Disclosures to borrowers.--
                          ``(i) Federal education loans.--For each 
                      education loan that is made, insured, or 
                      guaranteed under part B or D of title IV (other 
                      than a loan made under section 428C or a Federal 
                      Direct Consolidation Loan),

[[Page 122 STAT. 3121]]

                      at or prior to the time the lender disburses such 
                      loan, the lender shall provide the prospective 
                      borrower or borrower, in writing (including 
                      through electronic means), with the disclosures 
                      described in subsections (a) and (c) of section 
                      433.
                          ``(ii) Private education loans.--For each of a 
                      lender's private education loans, the lender shall 
                      comply with the disclosure requirements under 
                      section 128(e) of the Truth in Lending Act (15 
                      U.S.C. 1638(e)).
                    ``(B) Disclosures to the secretary.--
                          ``(i) In general.--
                      Each <<NOTE: Deadline. Reports.>>  lender of a 
                      loan made, insured, or guaranteed under part B of 
                      title IV shall, on an annual basis, report to the 
                      Secretary--
                                    ``(I) any reasonable expenses paid 
                                or provided under section 435(d)(5)(D) 
                                or paragraph (3)(B) or (7) of section 
                                487(e) to any agent of a covered 
                                institution who--
                                            ``(aa) is employed in the 
                                        financial aid office of a 
                                        covered institution; or
                                            ``(bb) otherwise has 
                                        responsibilities with respect to 
                                        education loans or other 
                                        financial aid of the 
                                        institution; and
                                    ``(II) any similar expenses paid or 
                                provided to any agent of an institution-
                                affiliated organization who is involved 
                                in the practice of recommending, 
                                promoting, or endorsing education loans.
                          ``(ii) Contents of reports.--Each report 
                      described in clause (i) shall include--
                                    ``(I) the amount for each specific 
                                instance in which the lender provided 
                                such expenses;
                                    ``(II) the name of any agent 
                                described in clause (i) to whom the 
                                expenses were paid or provided;
                                    ``(III) the dates of the activity 
                                for which the expenses were paid or 
                                provided; and
                                    ``(IV) a brief description of the 
                                activity for which the expenses were 
                                paid or provided.
                          ``(iii) Report to congress.--The Secretary 
                      shall summarize the information received from the 
                      lenders under this subparagraph in a report and 
                      transmit such report annually to the authorizing 
                      committees.
            ``(2) Certification by lenders.--Not <<NOTE: Deadlines.>>  
        later than 18 months after the date of enactment of the Higher 
        Education Opportunity Act--
                    ``(A) in addition to any other disclosure required 
                under Federal law, each lender of a loan made, insured, 
                or guaranteed under part B of title IV that participates 
                in one or more preferred lender arrangements shall 
                annually certify the lender's compliance with the 
                requirements of this Act; and
                    ``(B) <<NOTE: Reports.>>  if an audit of a lender is 
                required pursuant to section 428(b)(1)(U)(iii), the 
                lender's compliance with the requirements under this 
                section shall be reported on and attested to annually by 
                the auditor of such lender.

[[Page 122 STAT. 3122]]

``SEC. 153. <<NOTE: 20 USC 1019b.>>  LOAN INFORMATION TO BE 
                        DISCLOSED AND MODEL DISCLOSURE FORM FOR 
                        COVERED INSTITUTIONS, INSTITUTION-
                        AFFILIATED ORGANIZATIONS, AND LENDERS 
                        PARTICIPATING IN PREFERRED LENDER 
                        ARRANGEMENTS.

    ``(a) Duties of the Secretary.--
            ``(1) Determination of minimum disclosures.--
                    ``(A) In general.--Not <<NOTE: Deadline.>>  later 
                than 18 months after the date of enactment of the Higher 
                Education Opportunity Act, the Secretary, in 
                coordination with the Board of Governors of the Federal 
                Reserve System, shall determine the minimum information 
                that lenders, covered institutions, and institution-
                affiliated organizations of such covered institutions 
                participating in preferred lender arrangements shall 
                make available regarding education loans described in 
                section 151(3)(A) that are offered to students and the 
                families of such students.
                    ``(B) Consultation and content of minimum 
                disclosures.--In carrying out subparagraph (A), the 
                Secretary shall--
                          ``(i) consult with students, the families of 
                      such students, representatives of covered 
                      institutions (including financial aid 
                      administrators, admission officers, and business 
                      officers), representatives of institution-
                      affiliated organizations, secondary school 
                      guidance counselors, lenders, loan servicers, and 
                      guaranty agencies;
                          ``(ii) include, in the minimum information 
                      under subparagraph (A) that is required to be made 
                      available, the information that the Board of 
                      Governors of the Federal Reserve System requires 
                      to be disclosed under section 128(e)(1) of the 
                      Truth in Lending Act (15 U.S.C. 1638(e)(1)), 
                      modified as necessary to apply to such loans; and
                          ``(iii) consider the merits of requiring each 
                      covered institution, and each institution-
                      affiliated organization of such covered 
                      institution, with a preferred lender arrangement 
                      to provide to prospective borrowers and the 
                      families of such borrowers the following 
                      information for each type of education loan 
                      offered pursuant to such preferred lender 
                      arrangement:
                                    ``(I) The interest rate and terms 
                                and conditions of the loan for the next 
                                award year, including loan forgiveness 
                                and deferment.
                                    ``(II) Information on any charges, 
                                such as origination and Federal default 
                                fees, that are payable on the loan, and 
                                whether those charges will be--
                                            ``(aa) collected by the 
                                        lender at or prior to the 
                                        disbursal of the loan, including 
                                        whether the charges will be 
                                        deducted from the proceeds of 
                                        the loan or paid separately by 
                                        the borrower; or
                                            ``(bb) paid in whole or in 
                                        part by the lender.
                                    ``(III) The annual and aggregate 
                                maximum amounts that may be borrowed.
                                    ``(IV) The average amount borrowed 
                                from the lender by students who 
                                graduated from such

[[Page 122 STAT. 3123]]

                                institution in the preceding year with 
                                certificates, undergraduate degrees, 
                                graduate degrees, and professional 
                                degrees, as applicable, and who obtained 
                                loans of such type from the lender for 
                                the preceding year.
                                    ``(V) The amount the borrower may 
                                pay in interest, based on a standard 
                                repayment plan and the average amount 
                                borrowed from the lender by students who 
                                graduated from such institution in the 
                                preceding year and who obtained loans of 
                                such type from the lender for the 
                                preceding year, for--
                                            ``(aa) borrowers who take 
                                        out loans under section 428;
                                            ``(bb) borrowers who take 
                                        out loans under section 428B or 
                                        428H, who pay the interest while 
                                        in school; and
                                            ``(cc) borrowers who take 
                                        out loans under section 428B or 
                                        428H, who do not pay the 
                                        interest while in school.
                                    ``(VI) The consequences for the 
                                borrower of defaulting on a loan, 
                                including limitations on the discharge 
                                of an education loan in bankruptcy.
                                    ``(VII) Contact information for the 
                                lender.
                                    ``(VIII) Other information suggested 
                                by the persons and entities with whom 
                                the Secretary has consulted under clause 
                                (i).
            ``(2) Required disclosures.--After making the determinations 
        under paragraph (1), the Secretary, in coordination with the 
        Board of Governors of the Federal Reserve System and after 
        consultation with the public, shall--
                    ``(A)(i) provide that the information determined 
                under paragraph (1) shall be disclosed by covered 
                institutions, and institution-affiliated organizations 
                of such covered institutions, with preferred lender 
                arrangements to prospective borrowers and the families 
                of such borrowers regarding the education loans 
                described in section 151(3)(A) that are offered pursuant 
                to such preferred lender arrangements; and
                    ``(ii) make clear that such covered institutions and 
                institution-affiliated organizations may provide the 
                required information on a form designed by the 
                institution or organization instead of the model 
                disclosure form described in subparagraph (B);
                    ``(B) develop a model disclosure form that may be 
                used by covered institutions, institution-affiliated 
                organizations, and preferred lenders that includes all 
                of the information required under subparagraph (A)(i) in 
                a format that--
                          ``(i) is easily usable by students, families, 
                      institutions, institution-affiliated 
                      organizations, lenders, loan servicers, and 
                      guaranty agencies; and
                          ``(ii) is similar in format to the form 
                      developed by the Board of Governors of the Federal 
                      Reserve System under paragraphs (1) and (5)(A) of 
                      section 128(e), in order to permit students and 
                      the families of students to easily compare private 
                      education loans and education loans described in 
                      section 151(3)(A); and

[[Page 122 STAT. 3124]]

                    ``(C) update such model disclosure form 
                periodically, as necessary.

    ``(b) Duties of Lenders.--Each <<NOTE: Deadline.>>  lender that has 
a preferred lender arrangement with a covered institution, or an 
institution-affiliated organization of such covered institution, with 
respect to education loans described in section 151(3)(A) shall 
annually, by a date determined by the Secretary, provide to such covered 
institution or such institution-affiliated organization, and to the 
Secretary, the information the Secretary requires pursuant to subsection 
(a)(2)(A)(i) for each type of education loan described in section 
151(3)(A) that the lender plans to offer pursuant to such preferred 
lender arrangement to students attending such covered institution, or to 
the families of such students, for the next award year.

    ``(c) Duties of Covered Institutions and Institution-Affiliated 
Organizations.--
            ``(1) Providing information to students and families.--
                    ``(A) In general.--Each covered institution, and 
                each institution-affiliated organization of such covered 
                institution, that has a preferred lender arrangement 
                shall provide the following information to students 
                attending such institution, or the families of such 
                students, as applicable:
                          ``(i) The information the Secretary requires 
                      pursuant to subsection (a)(2)(A)(i), for each type 
                      of education loan described in section 151(3)(A) 
                      offered pursuant to a preferred lender arrangement 
                      to students of such institution or the families of 
                      such students.
                          ``(ii)(I) In the case of a covered 
                      institution, the information that the Board of 
                      Governors of the Federal Reserve System requires 
                      to be disclosed under section 128(e)(11) of the 
                      Truth in Lending Act (15 U.S.C. 1638(e)(11)) to 
                      the covered institution, for each type of private 
                      education loan offered pursuant to such preferred 
                      lender arrangement to students of such institution 
                      or the families of such students.
                          ``(II) In the case of an institution-
                      affiliated organization, the information the Board 
                      of Governors of the Federal Reserve System 
                      requires to be disclosed under section 128(e)(1) 
                      of the Truth in Lending Act (15 U.S.C. 
                      1638(e)(1)), for each type of private education 
                      loan offered pursuant to such preferred lender 
                      arrangement to students of the institution with 
                      which such organization is affiliated or the 
                      families of such students.
                    ``(B) Timely provision of information.--The 
                information described in subparagraph (A) shall be 
                provided in a manner that allows for the students or the 
                families to take such information into account before 
                selecting a lender or applying for an education loan.
            ``(2) Annual report.--Each covered institution, and each 
        institution-affiliated organization of such covered institution, 
        that has a preferred lender arrangement, shall--
                    ``(A) prepare and submit to the Secretary an annual 
                report, by a date determined by the Secretary, that 
                includes, for each lender that has a preferred lender 
                arrangement with such covered institution or 
                organization--

[[Page 122 STAT. 3125]]

                          ``(i) the information described in clauses (i) 
                      and (ii) of paragraph (1)(A); and
                          ``(ii) a detailed explanation of why such 
                      covered institution or institution-affiliated 
                      organization entered into a preferred lender 
                      arrangement with the lender, including why the 
                      terms, conditions, and provisions of each type of 
                      education loan provided pursuant to the preferred 
                      lender arrangement are beneficial for students 
                      attending such institution, or the families of 
                      such students, as applicable; and
                    ``(B) <<NOTE: Public information.>>  ensure that the 
                report required under subparagraph (A) is made available 
                to the public and provided to students attending or 
                planning to attend such covered institution and the 
                families of such students.
            ``(3) Code of conduct.--
                    ``(A) In general.--Each covered institution, and 
                each institution-affiliated organization of such covered 
                institution, that has a preferred lender arrangement, 
                shall comply with the code of conduct requirements of 
                subparagraphs (A) through (C) of section 487(a)(25).
                    ``(B) Applicable code of conduct.--For purposes of 
                subparagraph (A), an institution-affiliated organization 
                of a covered institution shall--
                          ``(i) comply with the code of conduct 
                      developed and published by such covered 
                      institution under subparagraphs (A) and (B) of 
                      section 487(a)(25);
                          ``(ii) <<NOTE: Web site.>>  if such 
                      institution-affiliated organization has a website, 
                      publish such code of conduct prominently on the 
                      website; and
                          ``(iii) <<NOTE: Deadline. Notice.>>  
                      administer and enforce such code of conduct by, at 
                      a minimum, requiring that all of such 
                      organization's agents with responsibilities with 
                      respect to education loans be annually informed of 
                      the provisions of such code of conduct.
``SEC. 154. <<NOTE: 20 USC 1019c.>>  LOAN INFORMATION TO BE 
                        DISCLOSED AND MODEL DISCLOSURE FORM FOR 
                        INSTITUTIONS PARTICIPATING IN THE WILLIAM. 
                        D. FORD FEDERAL DIRECT LOAN PROGRAM.

    ``(a) Provision of Disclosures to Institutions by the Secretary.--
Not later <<NOTE: Deadline.>>  than 180 days after the development of 
the model disclosure form under section 153(a)(2)(B), the Secretary 
shall provide each institution of higher education participating in the 
William D. Ford Direct Loan Program under part D of title IV with a 
completed model disclosure form including the same information for 
Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford 
Loans, and Federal Direct PLUS loans made to, or on behalf of, students 
attending each such institution as is required on such form for loans 
described in section 151(3)(A).

    ``(b) Duties of Institutions.--
            ``(1) In general.--Each institution of higher education 
        participating in the William D. Ford Direct Loan Program under 
        part D of title IV shall--
                    ``(A) make the information the Secretary provides to 
                the institution under subsection (a) available to 
                students attending or planning to attend the 
                institution, or the families of such students, as 
                applicable; and

[[Page 122 STAT. 3126]]

                    ``(B) if the institution provides information 
                regarding a private education loan to a prospective 
                borrower, concurrently provide such borrower with the 
                information the Secretary provides to the institution 
                under subsection (a).
            ``(2) Choice of forms.--In providing the information 
        required under paragraph (1), an institution of higher education 
        may use a comparable form designed by the institution instead of 
        the model disclosure form developed under section 
        153(a)(2)(B).''.

                  TITLE II--TEACHER QUALITY ENHANCEMENT

SEC. 201. TEACHER QUALITY ENHANCEMENT.

    Title II (20 U.S.C. 1021 et seq.) is amended--
            (1) by inserting before part A the following:
``SEC. 200. <<NOTE: 20 USC 1021.>>  DEFINITIONS.

    ``In this title:
            ``(1) Arts and sciences.--The term `arts and sciences' 
        means--
                    ``(A) when referring to an organizational unit of an 
                institution of higher education, any academic unit that 
                offers one or more academic majors in disciplines or 
                content areas corresponding to the academic subject 
                matter areas in which teachers provide instruction; and
                    ``(B) when referring to a specific academic subject 
                area, the disciplines or content areas in which academic 
                majors are offered by the arts and sciences 
                organizational unit.
            ``(2) Children from low-income families.--The term `children 
        from low-income families' means children described in section 
        1124(c)(1)(A) of the Elementary and Secondary Education Act of 
        1965.
            ``(3) Core academic subjects.--The term `core academic 
        subjects' has the meaning given the term in section 9101 of the 
        Elementary and Secondary Education Act of 1965.
            ``(4) Early childhood educator.--The term `early childhood 
        educator' means an individual with primary responsibility for 
        the education of children in an early childhood education 
        program.
            ``(5) Educational service agency.--The term `educational 
        service agency' has the meaning given the term in section 9101 
        of the Elementary and Secondary Education Act of 1965.
            ``(6) Eligible partnership.--Except as otherwise provided in 
        section 251, the term `eligible partnership' means an entity 
        that--
                    ``(A) shall include--
                          ``(i) a high-need local educational agency;
                          ``(ii)(I) a high-need school or a consortium 
                      of high-need schools served by the high-need local 
                      educational agency; or
                          ``(II) as applicable, a high-need early 
                      childhood education program;
                          ``(iii) a partner institution;
                          ``(iv) a school, department, or program of 
                      education within such partner institution, which 
                      may include

[[Page 122 STAT. 3127]]

                      an existing teacher professional development 
                      program with proven outcomes within a four-year 
                      institution of higher education that provides 
                      intensive and sustained collaboration between 
                      faculty and local educational agencies consistent 
                      with the requirements of this title; and
                          ``(v) a school or department of arts and 
                      sciences within such partner institution; and
                    ``(B) may include any of the following:
                          ``(i) The Governor of the State.
                          ``(ii) The State educational agency.
                          ``(iii) The State board of education.
                          ``(iv) The State agency for higher education.
                          ``(v) A business.
                          ``(vi) A public or private nonprofit 
                      educational organization.
                          ``(vii) An educational service agency.
                          ``(viii) A teacher organization.
                          ``(ix) A high-performing local educational 
                      agency, or a consortium of such local educational 
                      agencies, that can serve as a resource to the 
                      partnership.
                          ``(x) A charter school (as defined in section 
                      5210 of the Elementary and Secondary Education Act 
                      of 1965).
                          ``(xi) A school or department within the 
                      partner institution that focuses on psychology and 
                      human development.
                          ``(xii) A school or department within the 
                      partner institution with comparable expertise in 
                      the disciplines of teaching, learning, and child 
                      and adolescent development.
                          ``(xiii) An entity operating a program that 
                      provides alternative routes to State certification 
                      of teachers.
            ``(7) Essential components of reading instruction.--The term 
        `essential components of reading instruction' has the meaning 
        given the term in section 1208 of the Elementary and Secondary 
        Education Act of 1965.
            ``(8) Exemplary teacher.--The term `exemplary teacher' has 
        the meaning given the term in section 9101 of the Elementary and 
        Secondary Education Act of 1965.
            ``(9) High-need early childhood education program.--The term 
        `high-need early childhood education program' means an early 
        childhood education program serving children from low-income 
        families that is located within the geographic area served by a 
        high-need local educational agency.
            ``(10) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational 
        agency--
                    ``(A)(i) for which not less than 20 percent of the 
                children served by the agency are children from low-
                income families;
                    ``(ii) that serves not fewer than 10,000 children 
                from low-income families;
                    ``(iii) that meets the eligibility requirements for 
                funding under the Small, Rural School Achievement 
                Program under section 6211(b) of the Elementary and 
                Secondary Education Act of 1965; or

[[Page 122 STAT. 3128]]

                    ``(iv) that meets the eligibility requirements for 
                funding under the Rural and Low-Income School Program 
                under section 6221(b) of the Elementary and Secondary 
                Education Act of 1965; and
                    ``(B)(i) for which there is a high percentage of 
                teachers not teaching in the academic subject areas or 
                grade levels in which the teachers were trained to 
                teach; or
                    ``(ii) for which there is a high teacher turnover 
                rate or a high percentage of teachers with emergency, 
                provisional, or temporary certification or licensure.
            ``(11) High-need school.--
                    ``(A) In general.--The term `high-need school' means 
                a school that, based on the most recent data available, 
                meets one or both of the following:
                          ``(i) The school is in the highest quartile of 
                      schools in a ranking of all schools served by a 
                      local educational agency, ranked in descending 
                      order by percentage of students from low-income 
                      families enrolled in such schools, as determined 
                      by the local educational agency based on one of 
                      the following measures of poverty:
                                    ``(I) The percentage of students 
                                aged 5 through 17 in poverty counted in 
                                the most recent census data approved by 
                                the Secretary.
                                    ``(II) The percentage of students 
                                eligible for a free or reduced price 
                                school lunch under the Richard B. 
                                Russell National School Lunch Act.
                                    ``(III) The percentage of students 
                                in families receiving assistance under 
                                the State program funded under part A of 
                                title IV of the Social Security Act.
                                    ``(IV) The percentage of students 
                                eligible to receive medical assistance 
                                under the Medicaid program.
                                    ``(V) A composite of two or more of 
                                the measures described in subclauses (I) 
                                through (IV).
                          ``(ii) In the case of--
                                    ``(I) an elementary school, the 
                                school serves students not less than 60 
                                percent of whom are eligible for a free 
                                or reduced price school lunch under the 
                                Richard B. Russell National School Lunch 
                                Act; or
                                    ``(II) any other school that is not 
                                an elementary school, the other school 
                                serves students not less than 45 percent 
                                of whom are eligible for a free or 
                                reduced price school lunch under the 
                                Richard B. Russell National School Lunch 
                                Act.
                    ``(B) Special rule.--
                          ``(i) Designation by the secretary.--The 
                      Secretary may, upon approval of an application 
                      submitted by an eligible partnership seeking a 
                      grant under this title, designate a school that 
                      does not qualify as a high-need school under 
                      subparagraph (A) as a high-need school for the 
                      purpose of this title. The Secretary shall base 
                      the approval of an application for designation of 
                      a school under this clause on a consideration of 
                      the information required under clause (ii), and 
                      may

[[Page 122 STAT. 3129]]

                      also take into account other information submitted 
                      by the eligible partnership.
                          ``(ii) Application requirements.--An 
                      application for designation of a school under 
                      clause (i) shall include--
                                    ``(I) the number and percentage of 
                                students attending such school who are--
                                            ``(aa) aged 5 through 17 in 
                                        poverty counted in the most 
                                        recent census data approved by 
                                        the Secretary;
                                            ``(bb) eligible for a free 
                                        or reduced price school lunch 
                                        under the Richard B. Russell 
                                        National School Lunch Act;
                                            ``(cc) in families receiving 
                                        assistance under the State 
                                        program funded under part A of 
                                        title IV of the Social Security 
                                        Act; or
                                            ``(dd) eligible to receive 
                                        medical assistance under the 
                                        Medicaid program;
                                    ``(II) information about the student 
                                academic achievement of students at such 
                                school; and
                                    ``(III) for a secondary school, the 
                                graduation rate for such school.
            ``(12) Highly competent.--The term `highly competent', when 
        used with respect to an early childhood educator, means an 
        educator--
                    ``(A) with specialized education and training in 
                development and education of young children from birth 
                until entry into kindergarten;
                    ``(B) with--
                          ``(i) a baccalaureate degree in an academic 
                      major in the arts and sciences; or
                          ``(ii) an associate's degree in a related 
                      educational area; and
                    ``(C) who has demonstrated a high level of knowledge 
                and use of content and pedagogy in the relevant areas 
                associated with quality early childhood education.
            ``(13) Highly qualified.--The term `highly qualified' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 and, with respect to special 
        education teachers, in section 602 of the Individuals with 
        Disabilities Education Act.
            ``(14) Induction program.--The term `induction program' 
        means a formalized program for new teachers during not less than 
        the teachers' first two years of teaching that is designed to 
        provide support for, and improve the professional performance 
        and advance the retention in the teaching field of, beginning 
        teachers. Such program shall promote effective teaching skills 
        and shall include the following components:
                    ``(A) High-quality teacher mentoring.
                    ``(B) Periodic, structured time for collaboration 
                with teachers in the same department or field, including 
                mentor teachers, as well as time for information-sharing 
                among teachers, principals, administrators, other 
                appropriate instructional staff, and participating 
                faculty in the partner institution.
                    ``(C) The application of empirically-based practice 
                and scientifically valid research on instructional 
                practices.

[[Page 122 STAT. 3130]]

                    ``(D) Opportunities for new teachers to draw 
                directly on the expertise of teacher mentors, faculty, 
                and researchers to support the integration of 
                empirically-based practice and scientifically valid 
                research with practice.
                    ``(E) The development of skills in instructional and 
                behavioral interventions derived from empirically-based 
                practice and, where applicable, scientifically valid 
                research.
                    ``(F) Faculty who--
                          ``(i) model the integration of research and 
                      practice in the classroom; and
                          ``(ii) assist new teachers with the effective 
                      use and integration of technology in the 
                      classroom.
                    ``(G) Interdisciplinary collaboration among 
                exemplary teachers, faculty, researchers, and other 
                staff who prepare new teachers with respect to the 
                learning process and the assessment of learning.
                    ``(H) Assistance with the understanding of data, 
                particularly student achievement data, and the 
                applicability of such data in classroom instruction.
                    ``(I) Regular and structured observation and 
                evaluation of new teachers by multiple evaluators, using 
                valid and reliable measures of teaching skills.
            ``(15) Limited english proficient.--The term `limited 
        English proficient' has the meaning given the term in section 
        9101 of the Elementary and Secondary Education Act of 1965.
            ``(16) Parent.--The term `parent' has the meaning given the 
        term in section 9101 of the Elementary and Secondary Education 
        Act of 1965.
            ``(17) Partner institution.--The term `partner institution' 
        means an institution of higher education, which may include a 
        two-year institution of higher education offering a dual program 
        with a four-year institution of higher education, participating 
        in an eligible partnership that has a teacher preparation 
        program--
                    ``(A) whose graduates exhibit strong performance on 
                State-determined qualifying assessments for new teachers 
                through--
                          ``(i) demonstrating that 80 percent or more of 
                      the graduates of the program who intend to enter 
                      the field of teaching have passed all of the 
                      applicable State qualification assessments for new 
                      teachers, which shall include an assessment of 
                      each prospective teacher's subject matter 
                      knowledge in the content area in which the teacher 
                      intends to teach; or
                          ``(ii) being ranked among the highest-
                      performing teacher preparation programs in the 
                      State as determined by the State--
                                    ``(I) using criteria consistent with 
                                the requirements for the State report 
                                card under section 205(b) before the 
                                first publication of such report card; 
                                and
                                    ``(II) using the State report card 
                                on teacher preparation required under 
                                section 205(b), after the first 
                                publication of such report card and for 
                                every year thereafter; and
                    ``(B) that requires--

[[Page 122 STAT. 3131]]

                          ``(i) each student in the program to meet high 
                      academic standards or demonstrate a record of 
                      success, as determined by the institution 
                      (including prior to entering and being accepted 
                      into a program), and participate in intensive 
                      clinical experience;
                          ``(ii) each student in the program preparing 
                      to become a teacher to become highly qualified; 
                      and
                          ``(iii) each student in the program preparing 
                      to become an early childhood educator to meet 
                      degree requirements, as established by the State, 
                      and become highly competent.
            ``(18) Principles of scientific research.--The term 
        `principles of scientific research' means principles of research 
        that--
                    ``(A) apply rigorous, systematic, and objective 
                methodology to obtain reliable and valid knowledge 
                relevant to education activities and programs;
                    ``(B) present findings and make claims that are 
                appropriate to, and supported by, the methods that have 
                been employed; and
                    ``(C) include, appropriate to the research being 
                conducted--
                          ``(i) use of systematic, empirical methods 
                      that draw on observation or experiment;
                          ``(ii) use of data analyses that are adequate 
                      to support the general findings;
                          ``(iii) reliance on measurements or 
                      observational methods that provide reliable and 
                      generalizable findings;
                          ``(iv) strong claims of causal relationships, 
                      only with research designs that eliminate 
                      plausible competing explanations for observed 
                      results, such as, but not limited to, random-
                      assignment experiments;
                          ``(v) presentation of studies and methods in 
                      sufficient detail and clarity to allow for 
                      replication or, at a minimum, to offer the 
                      opportunity to build systematically on the 
                      findings of the research;
                          ``(vi) acceptance by a peer-reviewed journal 
                      or critique by a panel of independent experts 
                      through a comparably rigorous, objective, and 
                      scientific review; and
                          ``(vii) consistency of findings across 
                      multiple studies or sites to support the 
                      generality of results and conclusions.
            ``(19) Professional development.--The term `professional 
        development' has the meaning given the term in section 9101 of 
        the Elementary and Secondary Education Act of 1965.
            ``(20) Scientifically valid research.--The term 
        `scientifically valid research' includes applied research, basic 
        research, and field-initiated research in which the rationale, 
        design, and interpretation are soundly developed in accordance 
        with principles of scientific research.
            ``(21) Teacher mentoring.--The term `teacher mentoring' 
        means the mentoring of new or prospective teachers through a 
        program that--
                    ``(A) includes clear criteria for the selection of 
                teacher mentors who will provide role model 
                relationships for

[[Page 122 STAT. 3132]]

                mentees, which criteria shall be developed by the 
                eligible partnership and based on measures of teacher 
                effectiveness;
                    ``(B) provides high-quality training for such 
                mentors, including instructional strategies for literacy 
                instruction and classroom management (including 
                approaches that improve the schoolwide climate for 
                learning, which may include positive behavioral 
                interventions and supports);
                    ``(C) provides regular and ongoing opportunities for 
                mentors and mentees to observe each other's teaching 
                methods in classroom settings during the day in a high-
                need school in the high-need local educational agency in 
                the eligible partnership;
                    ``(D) provides paid release time for mentors, as 
                applicable;
                    ``(E) provides mentoring to each mentee by a 
                colleague who teaches in the same field, grade, or 
                subject as the mentee;
                    ``(F) promotes empirically-based practice of, and 
                scientifically valid research on, where applicable--
                          ``(i) teaching and learning;
                          ``(ii) assessment of student learning;
                          ``(iii) the development of teaching skills 
                      through the use of instructional and behavioral 
                      interventions; and
                          ``(iv) the improvement of the mentees' 
                      capacity to measurably advance student learning; 
                      and
                    ``(G) includes--
                          ``(i) common planning time or regularly 
                      scheduled collaboration for the mentor and mentee; 
                      and
                          ``(ii) joint professional development 
                      opportunities.
            ``(22) Teaching residency program.--The term `teaching 
        residency program' means a school-based teacher preparation 
        program in which a prospective teacher--
                    ``(A) for one academic year, teaches alongside a 
                mentor teacher, who is the teacher of record;
                    ``(B) receives concurrent instruction during the 
                year described in subparagraph (A) from the partner 
                institution, which courses may be taught by local 
                educational agency personnel or residency program 
                faculty, in the teaching of the content area in which 
                the teacher will become certified or licensed;
                    ``(C) acquires effective teaching skills; and
                    ``(D) prior to completion of the program, earns a 
                master's degree, attains full State teacher 
                certification or licensure, and becomes highly 
                qualified.
            ``(23) Teaching skills.--The term `teaching skills' means 
        skills that enable a teacher to--
                    ``(A) increase student learning, achievement, and 
                the ability to apply knowledge;
                    ``(B) effectively convey and explain academic 
                subject matter;
                    ``(C) effectively teach higher-order analytical, 
                evaluation, problem-solving, and communication skills;
                    ``(D) employ strategies grounded in the disciplines 
                of teaching and learning that--

[[Page 122 STAT. 3133]]

                          ``(i) are based on empirically-based practice 
                      and scientifically valid research, where 
                      applicable, related to teaching and learning;
                          ``(ii) are specific to academic subject 
                      matter; and
                          ``(iii) focus on the identification of 
                      students' specific learning needs, particularly 
                      students with disabilities, students who are 
                      limited English proficient, students who are 
                      gifted and talented, and students with low 
                      literacy levels, and the tailoring of academic 
                      instruction to such needs;
                    ``(E) conduct an ongoing assessment of student 
                learning, which may include the use of formative 
                assessments, performance-based assessments, project-
                based assessments, or portfolio assessments, that 
                measures higher-order thinking skills (including 
                application, analysis, synthesis, and evaluation);
                    ``(F) effectively manage a classroom, including the 
                ability to implement positive behavioral interventions 
                and support strategies;
                    ``(G) communicate and work with parents, and involve 
                parents in their children's education; and
                    ``(H) use, in the case of an early childhood 
                educator, age-appropriate and developmentally 
                appropriate strategies and practices for children in 
                early childhood education programs.'';
            (2) <<NOTE: 20 USC 10213et seq.>>  by striking part A and 
        inserting the following:

              ``PART A--TEACHER QUALITY PARTNERSHIP GRANTS

``SEC. 201. <<NOTE: 20 USC 1022.>>  PURPOSES.

    ``The purposes of this part are to--
            ``(1) improve student achievement;
            ``(2) improve the quality of prospective and new teachers by 
        improving the preparation of prospective teachers and enhancing 
        professional development activities for new teachers;
            ``(3) hold teacher preparation programs at institutions of 
        higher education accountable for preparing highly qualified 
        teachers; and
            ``(4) recruit highly qualified individuals, including 
        minorities and individuals from other occupations, into the 
        teaching force.
``SEC. 202. <<NOTE: 20 USC 1022a.>>  PARTNERSHIP GRANTS.

    ``(a) Program Authorized.--From amounts made available under section 
209, the Secretary is authorized to award grants, on a competitive 
basis, to eligible partnerships, to enable the eligible partnerships to 
carry out the activities described in subsection (c).
    ``(b) Application.--Each eligible partnership desiring a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary may 
require. Each such application shall contain--
            ``(1) a needs assessment of the partners in the eligible 
        partnership with respect to the preparation, ongoing training, 
        professional development, and retention of general education

[[Page 122 STAT. 3134]]

        and special education teachers, principals, and, as applicable, 
        early childhood educators;
            ``(2) a description of the extent to which the program to be 
        carried out with grant funds, as described in subsection (c), 
        will prepare prospective and new teachers with strong teaching 
        skills;
            ``(3) a description of how such program will prepare 
        prospective and new teachers to understand and use research and 
        data to modify and improve classroom instruction;
            ``(4) a description of--
                    ``(A) how the eligible partnership will coordinate 
                strategies and activities assisted under the grant with 
                other teacher preparation or professional development 
                programs, including programs funded under the Elementary 
                and Secondary Education Act of 1965 and the Individuals 
                with Disabilities Education Act, and through the 
                National Science Foundation; and
                    ``(B) how the activities of the partnership will be 
                consistent with State, local, and other education reform 
                activities that promote teacher quality and student 
                academic achievement;
            ``(5) an assessment that describes the resources available 
        to the eligible partnership, including--
                    ``(A) the integration of funds from other related 
                sources;
                    ``(B) the intended use of the grant funds; and
                    ``(C) the commitment of the resources of the 
                partnership to the activities assisted under this 
                section, including financial support, faculty 
                participation, and time commitments, and to the 
                continuation of the activities when the grant ends;
            ``(6) a description of--
                    ``(A) how the eligible partnership will meet the 
                purposes of this part;
                    ``(B) how the partnership will carry out the 
                activities required under subsection (d) or (e), based 
                on the needs identified in paragraph (1), with the goal 
                of improving student academic achievement;
                    ``(C) if the partnership chooses to use funds under 
                this section for a project or activities under 
                subsection (f) or (g), how the partnership will carry 
                out such project or required activities based on the 
                needs identified in paragraph (1), with the goal of 
                improving student academic achievement;
                    ``(D) the partnership's evaluation plan under 
                section 204(a);
                    ``(E) how the partnership will align the teacher 
                preparation program under subsection (c) with the--
                          ``(i) State early learning standards for early 
                      childhood education programs, as appropriate, and 
                      with the relevant domains of early childhood 
                      development; and
                          ``(ii) student academic achievement standards 
                      and academic content standards under section 
                      1111(b)(2) of the Elementary and Secondary 
                      Education Act of 1965, established by the State in 
                      which the partnership is located;

[[Page 122 STAT. 3135]]

                    ``(F) how the partnership will prepare general 
                education teachers to teach students with disabilities, 
                including training related to participation as a member 
                of individualized education program teams, as defined in 
                section 614(d)(1)(B) of the Individuals with 
                Disabilities Education Act;
                    ``(G) how the partnership will prepare general 
                education and special education teachers to teach 
                students who are limited English proficient;
                    ``(H) how faculty at the partner institution will 
                work, during the term of the grant, with highly 
                qualified teachers in the classrooms of high-need 
                schools served by the high-need local educational agency 
                in the partnership to--
                          ``(i) provide high-quality professional 
                      development activities to strengthen the content 
                      knowledge and teaching skills of elementary school 
                      and secondary school teachers; and
                          ``(ii) train other classroom teachers to 
                      implement literacy programs that incorporate the 
                      essential components of reading instruction;
                    ``(I) how the partnership will design, implement, or 
                enhance a year-long and rigorous teaching preservice 
                clinical program component;
                    ``(J) how the partnership will support in-service 
                professional development strategies and activities; and
                    ``(K) how the partnership will collect, analyze, and 
                use data on the retention of all teachers and early 
                childhood educators in schools and early childhood 
                education programs located in the geographic area served 
                by the partnership to evaluate the effectiveness of the 
                partnership's teacher and educator support system; and
            ``(7) with respect to the induction program required as part 
        of the activities carried out under this section--
                    ``(A) a demonstration that the schools and 
                departments within the institution of higher education 
                that are part of the induction program will effectively 
                prepare teachers, including providing content expertise 
                and expertise in teaching, as appropriate;
                    ``(B) a demonstration of the eligible partnership's 
                capability and commitment to, and the accessibility to 
                and involvement of faculty in, the use of empirically-
                based practice and scientifically valid research on 
                teaching and learning;
                    ``(C) a description of how the teacher preparation 
                program will design and implement an induction program 
                to support, through not less than the first two years of 
                teaching, all new teachers who are prepared by the 
                teacher preparation program in the partnership and who 
                teach in the high-need local educational agency in the 
                partnership, and, to the extent practicable, all new 
                teachers who teach in such high-need local educational 
                agency, in the further development of the new teachers' 
                teaching skills, including the use of mentors who are 
                trained and compensated by such program for the mentors' 
                work with new teachers; and
                    ``(D) a description of how faculty involved in the 
                induction program will be able to substantially 
                participate in

[[Page 122 STAT. 3136]]

                an early childhood education program or an elementary 
                school or secondary school classroom setting, as 
                applicable, including release time and receiving 
                workload credit for such participation.

    ``(c) Use of Grant Funds.--An eligible partnership that receives a 
grant under this section--
            ``(1) shall use grant funds to carry out a program for the 
        pre-baccalaureate preparation of teachers under subsection (d), 
        a teaching residency program under subsection (e), or a 
        combination of such programs; and
            ``(2) may use grant funds to carry out a leadership 
        development program under subsection (f).

    ``(d) Partnership Grants for Pre-Baccalaureate Preparation of 
Teachers.--An eligible partnership that receives a grant to carry out an 
effective program for the pre-baccalaureate preparation of teachers 
shall carry out a program that includes all of the following:
            ``(1) Reforms.--
                    ``(A) In general.--Implementing reforms, described 
                in subparagraph (B), within each teacher preparation 
                program and, as applicable, each preparation program for 
                early childhood education programs, of the eligible 
                partnership that is assisted under this section, to hold 
                each program accountable for--
                          ``(i) preparing--
                                    ``(I) new or prospective teachers to 
                                be highly qualified (including teachers 
                                in rural school districts who may teach 
                                multiple subjects, special educators, 
                                and teachers of students who are limited 
                                English proficient who may teach 
                                multiple subjects);
                                    ``(II) such teachers and, as 
                                applicable, early childhood educators, 
                                to understand empirically-based practice 
                                and scientifically valid research 
                                related to teaching and learning and the 
                                applicability of such practice and 
                                research, including through the 
                                effective use of technology, 
                                instructional techniques, and strategies 
                                consistent with the principles of 
                                universal design for learning, and 
                                through positive behavioral 
                                interventions and support strategies to 
                                improve student achievement; and
                                    ``(III) as applicable, early 
                                childhood educators to be highly 
                                competent; and
                          ``(ii) promoting strong teaching skills and, 
                      as applicable, techniques for early childhood 
                      educators to improve children's cognitive, social, 
                      emotional, and physical development.
                    ``(B) Required reforms.--The reforms described in 
                subparagraph (A) shall include--
                          ``(i) implementing teacher preparation program 
                      curriculum changes that improve, evaluate, and 
                      assess how well all prospective and new teachers 
                      develop teaching skills;
                          ``(ii) using empirically-based practice and 
                      scientifically valid research, where applicable, 
                      about teaching

[[Page 122 STAT. 3137]]

                      and learning so that all prospective teachers and, 
                      as applicable, early childhood educators--
                                    ``(I) understand and can implement 
                                research-based teaching practices in 
                                classroom instruction;
                                    ``(II) have knowledge of student 
                                learning methods;
                                    ``(III) possess skills to analyze 
                                student academic achievement data and 
                                other measures of student learning, and 
                                use such data and measures to improve 
                                classroom instruction;
                                    ``(IV) possess teaching skills and 
                                an understanding of effective 
                                instructional strategies across all 
                                applicable content areas that enable 
                                general education and special education 
                                teachers and early childhood educators 
                                to--
                                            ``(aa) meet the specific 
                                        learning needs of all students, 
                                        including students with 
                                        disabilities, students who are 
                                        limited English proficient, 
                                        students who are gifted and 
                                        talented, students with low 
                                        literacy levels and, as 
                                        applicable, children in early 
                                        childhood education programs; 
                                        and
                                            ``(bb) differentiate 
                                        instruction for such students;
                                    ``(V) can effectively participate as 
                                a member of the individualized education 
                                program team, as defined in section 
                                614(d)(1)(B) of the Individuals with 
                                Disabilities Education Act; and
                                    ``(VI) can successfully employ 
                                effective strategies for reading 
                                instruction using the essential 
                                components of reading instruction;
                          ``(iii) ensuring collaboration with 
                      departments, programs, or units of a partner 
                      institution outside of the teacher preparation 
                      program in all academic content areas to ensure 
                      that prospective teachers receive training in both 
                      teaching and relevant content areas in order to 
                      become highly qualified, which may include 
                      training in multiple subjects to teach multiple 
                      grade levels as may be needed for individuals 
                      preparing to teach in rural communities and for 
                      individuals preparing to teach students with 
                      disabilities as described in section 602(10)(D) of 
                      the Individuals with Disabilities Education Act;
                          ``(iv) developing and implementing an 
                      induction program;
                          ``(v) developing admissions goals and 
                      priorities aligned with the hiring objectives of 
                      the high-need local educational agency in the 
                      eligible partnership; and
                          ``(vi) implementing program and curriculum 
                      changes, as applicable, to ensure that prospective 
                      teachers have the requisite content knowledge, 
                      preparation, and degree to teach Advanced 
                      Placement or International Baccalaureate courses 
                      successfully.
            ``(2) Clinical experience and interaction.--Developing and 
        improving a sustained and high-quality preservice clinical 
        education program to further develop the teaching skills of

[[Page 122 STAT. 3138]]

        all prospective teachers and, as applicable, early childhood 
        educators, involved in the program. Such program shall do the 
        following:
                    ``(A) Incorporate year-long opportunities for 
                enrichment, including--
                          ``(i) clinical learning in classrooms in high-
                      need schools served by the high-need local 
                      educational agency in the eligible partnership, 
                      and identified by the eligible partnership; and
                          ``(ii) closely supervised interaction between 
                      prospective teachers and faculty, experienced 
                      teachers, principals, other administrators, and 
                      school leaders at early childhood education 
                      programs (as applicable), elementary schools, or 
                      secondary schools, and providing support for such 
                      interaction.
                    ``(B) Integrate pedagogy and classroom practice and 
                promote effective teaching skills in academic content 
                areas.
                    ``(C) Provide high-quality teacher mentoring.
                    ``(D) Be offered over the course of a program of 
                teacher preparation.
                    ``(E) Be tightly aligned with course work (and may 
                be developed as a fifth year of a teacher preparation 
                program).
                    ``(F) Where feasible, allow prospective teachers to 
                learn to teach in the same local educational agency in 
                which the teachers will work, learning the instructional 
                initiatives and curriculum of that local educational 
                agency.
                    ``(G) As applicable, provide training and experience 
                to enhance the teaching skills of prospective teachers 
                to better prepare such teachers to meet the unique needs 
                of teaching in rural or urban communities.
                    ``(H) Provide support and training for individuals 
                participating in an activity for prospective or new 
                teachers described in this paragraph or paragraph (1) or 
                (3), and for individuals who serve as mentors for such 
                teachers, based on each individual's experience. Such 
                support may include--
                          ``(i) with respect to a prospective teacher or 
                      a mentor, release time for such individual's 
                      participation;
                          ``(ii) with respect to a faculty member, 
                      receiving course workload credit and compensation 
                      for time teaching in the eligible partnership's 
                      activities; and
                          ``(iii) with respect to a mentor, a stipend, 
                      which may include bonus, differential, incentive, 
                      or performance pay, based on the mentor's extra 
                      skills and responsibilities.
            ``(3) Induction programs for new teachers.--Creating an 
        induction program for new teachers or, in the case of an early 
        childhood education program, providing mentoring or coaching for 
        new early childhood educators.
            ``(4) Support and training for participants in early 
        childhood education programs.--In the case of an eligible 
        partnership focusing on early childhood educator preparation, 
        implementing initiatives that increase compensation for early 
        childhood educators who attain associate or baccalaureate 
        degrees in early childhood education.

[[Page 122 STAT. 3139]]

            ``(5) Teacher recruitment.--Developing and implementing 
        effective mechanisms (which may include alternative routes to 
        State certification of teachers) to ensure that the eligible 
        partnership is able to recruit qualified individuals to become 
        highly qualified teachers through the activities of the eligible 
        partnership, which may include an emphasis on recruiting into 
        the teaching profession--
                    ``(A) individuals from under represented 
                populations;
                    ``(B) individuals to teach in rural communities and 
                teacher shortage areas, including mathematics, science, 
                special education, and the instruction of limited 
                English proficient students; and
                    ``(C) mid-career professionals from other 
                occupations, former military personnel, and recent 
                college graduates with a record of academic distinction.
            ``(6) Literacy training.--Strengthening the literacy 
        teaching skills of prospective and, as applicable, new 
        elementary school and secondary school teachers--
                    ``(A) to implement literacy programs that 
                incorporate the essential components of reading 
                instruction;
                    ``(B) to use screening, diagnostic, formative, and 
                summative assessments to determine students' literacy 
                levels, difficulties, and growth in order to improve 
                classroom instruction and improve student reading and 
                writing skills;
                    ``(C) to provide individualized, intensive, and 
                targeted literacy instruction for students with 
                deficiencies in literacy skills; and
                    ``(D) to integrate literacy skills in the classroom 
                across subject areas.

    ``(e) Partnership Grants for the Establishment of Teaching Residency 
Programs.--
            ``(1) In general.--An eligible partnership receiving a grant 
        to carry out an effective teaching residency program shall carry 
        out a program that includes all of the following activities:
                    ``(A) Supporting a teaching residency program 
                described in paragraph (2) for high-need subjects and 
                areas, as determined by the needs of the high-need local 
                educational agency in the partnership.
                    ``(B) Placing graduates of the teaching residency 
                program in cohorts that facilitate professional 
                collaboration, both among graduates of the teaching 
                residency program and between such graduates and mentor 
                teachers in the receiving school.
                    ``(C) Ensuring that teaching residents who 
                participate in the teaching residency program receive--
                          ``(i) effective preservice preparation as 
                      described in paragraph (2);
                          ``(ii) teacher mentoring;
                          ``(iii) support required through the induction 
                      program as the teaching residents enter the 
                      classroom as new teachers; and
                          ``(iv) the preparation described in 
                      subparagraphs (A), (B), and (C) of subsection 
                      (d)(2).
            ``(2) Teaching residency programs.--
                    ``(A) Establishment and design.--A teaching 
                residency program under this paragraph shall be a 
                program

[[Page 122 STAT. 3140]]

                based upon models of successful teaching residencies 
                that serves as a mechanism to prepare teachers for 
                success in the high-need schools in the eligible 
                partnership, and shall be designed to include the 
                following characteristics of successful programs:
                          ``(i) The integration of pedagogy, classroom 
                      practice, and teacher mentoring.
                          ``(ii) Engagement of teaching residents in 
                      rigorous graduate-level course work to earn a 
                      master's degree while undertaking a guided 
                      teaching apprenticeship.
                          ``(iii) Experience and learning opportunities 
                      alongside a trained and experienced mentor 
                      teacher--
                                    ``(I) whose teaching shall 
                                complement the residency program so that 
                                classroom clinical practice is tightly 
                                aligned with coursework;
                                    ``(II) who shall have extra 
                                responsibilities as a teacher leader of 
                                the teaching residency program, as a 
                                mentor for residents, and as a teacher 
                                coach during the induction program for 
                                new teachers, and for establishing, 
                                within the program, a learning community 
                                in which all individuals are expected to 
                                continually improve their capacity to 
                                advance student learning; and
                                    ``(III) who may be relieved from 
                                teaching duties as a result of such 
                                additional responsibilities.
                          ``(iv) The establishment of clear criteria for 
                      the selection of mentor teachers based on measures 
                      of teacher effectiveness and the appropriate 
                      subject area knowledge. Evaluation of teacher 
                      effectiveness shall be based on, but not limited 
                      to, observations of the following:
                                    ``(I) Planning and preparation, 
                                including demonstrated knowledge of 
                                content, pedagogy, and assessment, 
                                including the use of formative and 
                                diagnostic assessments to improve 
                                student learning.
                                    ``(II) Appropriate instruction that 
                                engages students with different learning 
                                styles.
                                    ``(III) Collaboration with 
                                colleagues to improve instruction.
                                    ``(IV) Analysis of gains in student 
                                learning, based on multiple measures 
                                that are valid and reliable and that, 
                                when feasible, may include valid, 
                                reliable, and objective measures of the 
                                influence of teachers on the rate of 
                                student academic progress.
                                    ``(V) In the case of mentor 
                                candidates who will be mentoring new or 
                                prospective literacy and mathematics 
                                coaches or instructors, appropriate 
                                skills in the essential components of 
                                reading instruction, teacher training in 
                                literacy instructional strategies across 
                                core subject areas, and teacher training 
                                in mathematics instructional strategies, 
                                as appropriate.

[[Page 122 STAT. 3141]]

                          ``(v) Grouping of teaching residents in 
                      cohorts to facilitate professional collaboration 
                      among such residents.
                          ``(vi) The development of admissions goals and 
                      priorities--
                                    ``(I) that are aligned with the 
                                hiring objectives of the local 
                                educational agency partnering with the 
                                program, as well as the instructional 
                                initiatives and curriculum of such 
                                agency, in exchange for a commitment by 
                                such agency to hire qualified graduates 
                                from the teaching residency program; and
                                    ``(II) which may include 
                                consideration of applicants who reflect 
                                the communities in which they will teach 
                                as well as consideration of individuals 
                                from underrepresented populations in the 
                                teaching profession.
                          ``(vii) Support for residents, once the 
                      teaching residents are hired as teachers of 
                      record, through an induction program, professional 
                      development, and networking opportunities to 
                      support the residents through not less than the 
                      residents' first two years of teaching.
                    ``(B) Selection of individuals as teacher 
                residents.--
                          ``(i) Eligible individual.--In order to be 
                      eligible to be a teacher resident in a teaching 
                      residency program under this paragraph, an 
                      individual shall--
                                    ``(I) be a recent graduate of a 
                                four-year institution of higher 
                                education or a mid-career professional 
                                from outside the field of education 
                                possessing strong content knowledge or a 
                                record of professional accomplishment; 
                                and
                                    ``(II) submit an application to the 
                                teaching residency program.
                          ``(ii) Selection criteria.--An eligible 
                      partnership carrying out a teaching residency 
                      program under this subsection shall establish 
                      criteria for the selection of eligible individuals 
                      to participate in the teaching residency program 
                      based on the following characteristics:
                                    ``(I) Strong content knowledge or 
                                record of accomplishment in the field or 
                                subject area to be taught.
                                    ``(II) Strong verbal and written 
                                communication skills, which may be 
                                demonstrated by performance on 
                                appropriate tests.
                                    ``(III) Other attributes linked to 
                                effective teaching, which may be 
                                determined by interviews or performance 
                                assessments, as specified by the 
                                eligible partnership.
                    ``(C) Stipends or salaries; applications; 
                agreements; repayments.--
                          ``(i) Stipends or salaries.--A teaching 
                      residency program under this subsection shall 
                      provide a one-year living stipend or salary to 
                      teaching residents during the one-year teaching 
                      residency program.
                          ``(ii) Applications for stipends or 
                      salaries.--Each teacher residency candidate 
                      desiring a stipend

[[Page 122 STAT. 3142]]

                      or salary during the period of residency shall 
                      submit an application to the eligible partnership 
                      at such time, and containing such information and 
                      assurances, as the eligible partnership may 
                      require.
                          ``(iii) Agreements to serve.--Each application 
                      submitted under clause (ii) shall contain or be 
                      accompanied by an agreement that the applicant 
                      will--
                                    ``(I) serve as a full-time teacher 
                                for a total of not less than three 
                                academic years immediately after 
                                successfully completing the one-year 
                                teaching residency program;
                                    ``(II) fulfill the requirement under 
                                subclause (I) by teaching in a high-need 
                                school served by the high-need local 
                                educational agency in the eligible 
                                partnership and teach a subject or area 
                                that is designated as high need by the 
                                partnership;
                                    ``(III) provide to the eligible 
                                partnership a certificate, from the 
                                chief administrative officer of the 
                                local educational agency in which the 
                                resident is employed, of the employment 
                                required in subclauses (I) and (II) at 
                                the beginning of, and upon completion 
                                of, each year or partial year of 
                                service;
                                    ``(IV) meet the requirements to be a 
                                highly qualified teacher, as defined in 
                                section 9101 of the Elementary and 
                                Secondary Education Act of 1965, or 
                                section 602 of the Individuals with 
                                Disabilities Education Act, when the 
                                applicant begins to fulfill the service 
                                obligation under this clause; and
                                    ``(V) comply with the requirements 
                                set by the eligible partnership under 
                                clause (iv) if the applicant is unable 
                                or unwilling to complete the service 
                                obligation required by this clause.
                          ``(iv) Repayments.--
                                    ``(I) In general.--A grantee 
                                carrying out a teaching residency 
                                program under this paragraph shall 
                                require a recipient of a stipend or 
                                salary under clause (i) who does not 
                                complete, or who notifies the 
                                partnership that the recipient intends 
                                not to complete, the service obligation 
                                required by clause (iii) to repay such 
                                stipend or salary to the eligible 
                                partnership, together with interest, at 
                                a rate specified by the partnership in 
                                the agreement, and in accordance with 
                                such other terms and conditions 
                                specified by the eligible partnership, 
                                as necessary.
                                    ``(II) Other terms and conditions.--
                                Any other terms and conditions specified 
                                by the eligible partnership may include 
                                reasonable provisions for pro-rata 
                                repayment of the stipend or salary 
                                described in clause (i) or for deferral 
                                of a teaching resident's service 
                                obligation required by clause (iii), on 
                                grounds of health, incapacitation, 
                                inability to secure employment in a 
                                school served by the eligible 
                                partnership, being called to active duty 
                                in the Armed Forces of the United 
                                States, or other extraordinary 
                                circumstances.

[[Page 122 STAT. 3143]]

                                    ``(III) Use of repayments.--An 
                                eligible partnership shall use any 
                                repayment received under this clause to 
                                carry out additional activities that are 
                                consistent with the purposes of this 
                                subsection.

    ``(f) Partnership Grants for the Development of Leadership 
Programs.--
            ``(1) In general.--An eligible partnership that receives a 
        grant under this section may carry out an effective school 
        leadership program, which may be carried out in partnership with 
        a local educational agency located in a rural area and that 
        shall include all of the following activities:
                    ``(A) Preparing individuals enrolled or preparing to 
                enroll in school leadership programs for careers as 
                superintendents, principals, early childhood education 
                program directors, or other school leaders (including 
                individuals preparing to work in local educational 
                agencies located in rural areas who may perform multiple 
                duties in addition to the role of a school leader).
                    ``(B) Promoting strong leadership skills and, as 
                applicable, techniques for school leaders to 
                effectively--
                          ``(i) create and maintain a data-driven, 
                      professional learning community within the 
                      leader's school;
                          ``(ii) provide a climate conducive to the 
                      professional development of teachers, with a focus 
                      on improving student academic achievement and the 
                      development of effective instructional leadership 
                      skills;
                          ``(iii) understand the teaching and assessment 
                      skills needed to support successful classroom 
                      instruction and to use data to evaluate teacher 
                      instruction and drive teacher and student 
                      learning;
                          ``(iv) manage resources and school time to 
                      improve student academic achievement and ensure 
                      the school environment is safe;
                          ``(v) engage and involve parents, community 
                      members, the local educational agency, businesses, 
                      and other community leaders, to leverage 
                      additional resources to improve student academic 
                      achievement; and
                          ``(vi) understand how students learn and 
                      develop in order to increase academic achievement 
                      for all students.
                    ``(C) Ensuring that individuals who participate in 
                the school leadership program receive--
                          ``(i) effective preservice preparation as 
                      described in subparagraph (D);
                          ``(ii) mentoring; and
                          ``(iii) if applicable, full State 
                      certification or licensure to become a school 
                      leader.
                    ``(D) Developing and improving a sustained and high-
                quality preservice clinical education program to further 
                develop the leadership skills of all prospective school 
                leaders involved in the program. Such clinical education 
                program shall do the following:
                          ``(i) Incorporate year-long opportunities for 
                      enrichment, including--
                                    ``(I) clinical learning in high-need 
                                schools served by the high-need local 
                                educational agency

[[Page 122 STAT. 3144]]

                                or a local educational agency located in 
                                a rural area in the eligible partnership 
                                and identified by the eligible 
                                partnership; and
                                    ``(II) closely supervised 
                                interaction between prospective school 
                                leaders and faculty, new and experienced 
                                teachers, and new and experienced school 
                                leaders, in such high-need schools.
                          ``(ii) Integrate pedagogy and practice and 
                      promote effective leadership skills, meeting the 
                      unique needs of urban, rural, or geographically 
                      isolated communities, as applicable.
                          ``(iii) Provide for mentoring of new school 
                      leaders.
                    ``(E) Creating an induction program for new school 
                leaders.
                    ``(F) Developing and implementing effective 
                mechanisms to ensure that the eligible partnership is 
                able to recruit qualified individuals to become school 
                leaders through the activities of the eligible 
                partnership, which may include an emphasis on recruiting 
                into school leadership professions--
                          ``(i) individuals from underrepresented 
                      populations;
                          ``(ii) individuals to serve as 
                      superintendents, principals, or other school 
                      administrators in rural and geographically 
                      isolated communities and school leader shortage 
                      areas; and
                          ``(iii) mid-career professionals from other 
                      occupations, former military personnel, and recent 
                      college graduates with a record of academic 
                      distinction.
            ``(2) Selection of individuals for the leadership program.--
        In order to be eligible for the school leadership program under 
        this subsection, an individual shall be enrolled in or preparing 
        to enroll in an institution of higher education, and shall--
                    ``(A) be a--
                          ``(i) recent graduate of an institution of 
                      higher education;
                          ``(ii) mid-career professional from outside 
                      the field of education with strong content 
                      knowledge or a record of professional 
                      accomplishment;
                          ``(iii) current teacher who is interested in 
                      becoming a school leader; or
                          ``(iv) school leader who is interested in 
                      becoming a superintendent; and
                    ``(B) submit an application to the leadership 
                program.

    ``(g) Partnership With Digital Education Content Developer.--An 
eligible partnership that receives a grant under this section may use 
grant funds provided to carry out the activities described in subsection 
(d) or (e), or both, to partner with a television public broadcast 
station, as defined in section 397(6) of the Communications Act of 1934 
(47 U.S.C. 397(6)), or another entity that develops digital educational 
content, for the purpose of improving the quality of pre-baccalaureate 
teacher preparation programs or to enhance the quality of preservice 
training for prospective teachers.
    ``(h) Evaluation and Reporting.--The Secretary shall--
            ``(1) evaluate the programs assisted under this section; and

[[Page 122 STAT. 3145]]

            ``(2) <<NOTE: Public information.>>  make publicly available 
        a report detailing the Secretary's evaluation of each such 
        program.

    ``(i) Consultation.--
            ``(1) In general.--Members of an eligible partnership that 
        receives a grant under this section shall engage in regular 
        consultation throughout the development and implementation of 
        programs and activities carried out under this section.
            ``(2) Regular communication.--To ensure timely and 
        meaningful consultation as described in paragraph (1), regular 
        communication shall occur among all members of the eligible 
        partnership, including the high-need local educational agency. 
        Such communication shall continue throughout the implementation 
        of the grant and the assessment of programs and activities under 
        this section.
            ``(3) Written consent.--The Secretary may approve changes in 
        grant activities of a grant under this section only if the 
        eligible partnership submits to the Secretary a written consent 
        of such changes signed by all members of the eligible 
        partnership.

    ``(j) Construction.--Nothing in this section shall be construed to 
prohibit an eligible partnership from using grant funds to coordinate 
with the activities of eligible partnerships in other States or on a 
regional basis through Governors, State boards of education, State 
educational agencies, State agencies responsible for early childhood 
education, local educational agencies, or State agencies for higher 
education.
    ``(k) Supplement, Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
activities under this section.
``SEC. 203. <<NOTE: 20 USC 1022b.>>  ADMINISTRATIVE PROVISIONS.

    ``(a) Duration; Number of Awards; Payments.--
            ``(1) Duration.--A grant awarded under this part shall be 
        awarded for a period of five years.
            ``(2) Number of awards.--An eligible partnership may not 
        receive more than one grant during a five-year period. Nothing 
        in this title shall be construed to prohibit an individual 
        member, that can demonstrate need, of an eligible partnership 
        that receives a grant under this title from entering into 
        another eligible partnership consisting of new members and 
        receiving a grant with such other eligible partnership before 
        the five-year period described in the preceding sentence 
        applicable to the eligible partnership with which the individual 
        member has first partnered has expired.

    ``(b) Peer Review.--
            ``(1) Panel.--The Secretary shall provide the applications 
        submitted under this part to a peer review panel for evaluation. 
        With respect to each application, the peer review panel shall 
        initially recommend the application for funding or for 
        disapproval.
            ``(2) Priority.--The Secretary, in funding applications 
        under this part, shall give priority--
                    ``(A) to eligible partnerships that include an 
                institution of higher education whose teacher 
                preparation program has a rigorous selection process to 
                ensure the highest quality of students entering such 
                program; and

[[Page 122 STAT. 3146]]

                    ``(B)(i) to applications from broad-based eligible 
                partnerships that involve businesses and community 
                organizations; or
                    ``(ii) to eligible partnerships so that the awards 
                promote an equitable geographic distribution of grants 
                among rural and urban areas.
            ``(3) Secretarial selection.--The Secretary shall determine, 
        based on the peer review process, which applications shall 
        receive funding and the amounts of the grants. In determining 
        grant amounts, the Secretary shall take into account the total 
        amount of funds available for all grants under this part and the 
        types of activities proposed to be carried out by the eligible 
        partnership.

    ``(c) Matching Requirements.--
            ``(1) In general.--Each eligible partnership receiving a 
        grant under this part shall provide, from non-Federal sources, 
        an amount equal to 100 percent of the amount of the grant, which 
        may be provided in cash or in-kind, to carry out the activities 
        supported by the grant.
            ``(2) Waiver.--The Secretary may waive all or part of the 
        matching requirement described in paragraph (1) for any fiscal 
        year for an eligible partnership if the Secretary determines 
        that applying the matching requirement to the eligible 
        partnership would result in serious hardship or an inability to 
        carry out the authorized activities described in this part.

    ``(d) Limitation on Administrative Expenses.--An eligible 
partnership that receives a grant under this part may use not more than 
two percent of the funds provided to administer the grant.
``SEC. 204. <<NOTE: 20 USC 1022c.>>  ACCOUNTABILITY AND 
                        EVALUATION.

    ``(a) Eligible Partnership Evaluation.--Each <<NOTE: Grants.>>  
eligible partnership submitting an application for a grant under this 
part shall establish, and include in such application, an evaluation 
plan that includes strong and measurable performance objectives. The 
plan shall include objectives and measures for increasing--
            ``(1) achievement for all prospective and new teachers, as 
        measured by the eligible partnership;
            ``(2) teacher retention in the first three years of a 
        teacher's career;
            ``(3) improvement in the pass rates and scaled scores for 
        initial State certification or licensure of teachers; and
            ``(4)(A) the percentage of highly qualified teachers hired 
        by the high-need local educational agency participating in the 
        eligible partnership;
            ``(B) the percentage of highly qualified teachers hired by 
        the high-need local educational agency who are members of 
        underrepresented groups;
            ``(C) the percentage of highly qualified teachers hired by 
        the high-need local educational agency who teach high-need 
        academic subject areas (such as reading, mathematics, science, 
        and foreign language, including less commonly taught languages 
        and critical foreign languages);
            ``(D) the percentage of highly qualified teachers hired by 
        the high-need local educational agency who teach in high-need

[[Page 122 STAT. 3147]]

        areas (including special education, language instruction 
        educational programs for limited English proficient students, 
        and early childhood education);
            ``(E) the percentage of highly qualified teachers hired by 
        the high-need local educational agency who teach in high-need 
        schools, disaggregated by the elementary school and secondary 
        school levels;
            ``(F) as applicable, the percentage of early childhood 
        education program classes in the geographic area served by the 
        eligible partnership taught by early childhood educators who are 
        highly competent; and
            ``(G) as applicable, the percentage of teachers trained--
                    ``(i) to integrate technology effectively into 
                curricula and instruction, including technology 
                consistent with the principles of universal design for 
                learning; and
                    ``(ii) to use technology effectively to collect, 
                manage, and analyze data to improve teaching and 
                learning for the purpose of improving student academic 
                achievement.

    ``(b) Information.--An eligible partnership receiving a grant under 
this part shall ensure that teachers, principals, school 
superintendents, faculty, and leadership at institutions of higher 
education located in the geographic areas served by the eligible 
partnership are provided information, including through electronic 
means, about the activities carried out with funds under this part.
    ``(c) Revised Application.--If <<NOTE: Deadline.>>  the Secretary 
determines that an eligible partnership receiving a grant under this 
part is not making substantial progress in meeting the purposes, goals, 
objectives, and measures of the grant, as appropriate, by the end of the 
third year of a grant under this part, then the Secretary--
            ``(1) shall cancel the grant; and
            ``(2) may use any funds returned or available because of 
        such cancellation under paragraph (1) to--
                    ``(A) increase other grant awards under this part; 
                or
                    ``(B) award new grants to other eligible 
                partnerships under this part.

    ``(d) Evaluation and Dissemination.--The <<NOTE: Reports.>>  
Secretary shall evaluate the activities funded under this part and 
report the findings regarding the evaluation of such activities to the 
authorizing committees. The Secretary shall broadly disseminate--
            ``(1) successful practices developed by eligible 
        partnerships under this part; and
            ``(2) information regarding such practices that were found 
        to be ineffective.
``SEC. 205. <<NOTE: 20 USC 1022d.>>  ACCOUNTABILITY FOR PROGRAMS 
                        THAT PREPARE TEACHERS.

    ``(a) Institutional and Program Report Cards on the Quality of 
Teacher Preparation.--
            ``(1) Report card.--Each institution of higher education 
        that conducts a traditional teacher preparation program or 
        alternative routes to State certification or licensure program 
        and that enrolls students receiving Federal assistance under 
        this Act shall report annually to the State and the general 
        public, in a uniform and comprehensible manner that conforms 
        with the definitions and methods established by the Secretary, 
        the following:
                    ``(A) Goals and assurances.--

[[Page 122 STAT. 3148]]

                          ``(i) For the most recent year for which the 
                      information is available for the institution--
                                    ``(I) whether the goals set under 
                                section 206 have been met; and
                                    ``(II) a description of the 
                                activities the institution implemented 
                                to achieve such goals.
                          ``(ii) A description of the steps the 
                      institution is taking to improve its performance 
                      in meeting the annual goals set under section 206.
                          ``(iii) A description of the activities the 
                      institution has implemented to meet the assurances 
                      provided under section 206.
                    ``(B) Pass rates and scaled scores.--For the most 
                recent year for which the information is available for 
                those students who took the assessments used for teacher 
                certification or licensure by the State in which the 
                program is located and are enrolled in the traditional 
                teacher preparation program or alternative routes to 
                State certification or licensure program, and for those 
                who have taken such assessments and have completed the 
                traditional teacher preparation program or alternative 
                routes to State certification or licensure program 
                during the two-year period preceding such year, for each 
                of such assessments--
                          ``(i) the percentage of students who have 
                      completed 100 percent of the nonclinical 
                      coursework and taken the assessment who pass such 
                      assessment;
                          ``(ii) the percentage of all students who 
                      passed such assessment;
                          ``(iii) the percentage of students who have 
                      taken such assessment who enrolled in and 
                      completed the traditional teacher preparation 
                      program or alternative routes to State 
                      certification or licensure program, as applicable;
                          ``(iv) the average scaled score for all 
                      students who took such assessment;
                          ``(v) a comparison of the program's pass rates 
                      with the average pass rates for programs in the 
                      State; and
                          ``(vi) a comparison of the program's average 
                      scaled scores with the average scaled scores for 
                      programs in the State.
                    ``(C) Program information.--A description of--
                          ``(i) the criteria for admission into the 
                      program;
                          ``(ii) the number of students in the program 
                      (disaggregated by race, ethnicity, and gender);
                          ``(iii) the average number of hours of 
                      supervised clinical experience required for those 
                      in the program;
                          ``(iv) the number of full-time equivalent 
                      faculty and students in the supervised clinical 
                      experience; and
                          ``(v) the total number of students who have 
                      been certified or licensed as teachers, 
                      disaggregated by subject and area of certification 
                      or licensure.
                    ``(D) Statement.--In States that require approval or 
                accreditation of teacher preparation programs, a 
                statement of whether the institution's program is so 
                approved or accredited, and by whom.

[[Page 122 STAT. 3149]]

                    ``(E) Designation as low-performing.--Whether the 
                program has been designated as low-performing by the 
                State under section 207(a).
                    ``(F) Use of technology.--A description of the 
                activities, including activities consistent with the 
                principles of universal design for learning, that 
                prepare teachers to integrate technology effectively 
                into curricula and instruction, and to use technology 
                effectively to collect, manage, and analyze data in 
                order to improve teaching and learning for the purpose 
                of increasing student academic achievement.
                    ``(G) Teacher training.--A description of the 
                activities that prepare general education and special 
                education teachers to teach students with disabilities 
                effectively, including training related to participation 
                as a member of individualized education program teams, 
                as defined in section 614(d)(1)(B) of the Individuals 
                with Disabilities Education Act, and to effectively 
                teach students who are limited English proficient.
            ``(2) Report.--Each eligible partnership receiving a grant 
        under section 202 shall report annually on the progress of the 
        eligible partnership toward meeting the purposes of this part 
        and the objectives and measures described in section 204(a).
            ``(3) Fines.--The Secretary may impose a fine not to exceed 
        $27,500 on an institution of higher education for failure to 
        provide the information described in this subsection in a timely 
        or accurate manner.
            ``(4) Special rule.--In the case of an institution of higher 
        education that conducts a traditional teacher preparation 
        program or alternative routes to State certification or 
        licensure program and has fewer than 10 scores reported on any 
        single initial teacher certification or licensure assessment 
        during an academic year, the institution shall collect and 
        publish information, as required under paragraph (1)(B), with 
        respect to an average pass rate and scaled score on each State 
        certification or licensure assessment taken over a three-year 
        period.

    ``(b) State Report Card on the Quality of Teacher Preparation.--
            ``(1) In general.--Each <<NOTE: Public information.>>  State 
        that receives funds under this Act shall provide to the 
        Secretary, and make widely available to the general public, in a 
        uniform and comprehensible manner that conforms with the 
        definitions and methods established by the Secretary, an annual 
        State report card on the quality of teacher preparation in the 
        State, both for traditional teacher preparation programs and for 
        alternative routes to State certification or licensure programs, 
        which shall include not less than the following:
                    ``(A) A description of the reliability and validity 
                of the teacher certification and licensure assessments, 
                and any other certification and licensure requirements, 
                used by the State.
                    ``(B) The standards and criteria that prospective 
                teachers must meet to attain initial teacher 
                certification or licensure and to be certified or 
                licensed to teach particular academic subjects, areas, 
                or grades within the State.

[[Page 122 STAT. 3150]]

                    ``(C) A description of how the assessments and 
                requirements described in subparagraph (A) are aligned 
                with the State's challenging academic content standards 
                required under section 1111(b)(1) of the Elementary and 
                Secondary Education Act of 1965 and, as applicable, 
                State early learning standards for early childhood 
                education programs.
                    ``(D) For each of the assessments used by the State 
                for teacher certification or licensure--
                          ``(i) for each institution of higher education 
                      located in the State and each entity located in 
                      the State, including those that offer an 
                      alternative route for teacher certification or 
                      licensure, the percentage of students at such 
                      institution or entity who have completed 100 
                      percent of the nonclinical coursework and taken 
                      the assessment who pass such assessment;
                          ``(ii) the percentage of all such students at 
                      all such institutions and entities who have taken 
                      the assessment who pass such assessment;
                          ``(iii) the percentage of students who have 
                      taken the assessment who enrolled in and completed 
                      a teacher preparation program; and
                          ``(iv) the average scaled score of individuals 
                      participating in such a program, or who have 
                      completed such a program during the two-year 
                      period preceding the first year for which the 
                      annual State report card is provided, who took 
                      each such assessment.
                    ``(E) A description of alternative routes to teacher 
                certification or licensure in the State (including any 
                such routes operated by entities that are not 
                institutions of higher education), if any, including, 
                for each of the assessments used by the State for 
                teacher certification or licensure--
                          ``(i) the percentage of individuals 
                      participating in such routes, or who have 
                      completed such routes during the two-year period 
                      preceding the date for which the determination is 
                      made, who passed each such assessment; and
                          ``(ii) the average scaled score of individuals 
                      participating in such routes, or who have 
                      completed such routes during the two-year period 
                      preceding the first year for which the annual 
                      State report card is provided, who took each such 
                      assessment.
                    ``(F) A description of the State's criteria for 
                assessing the performance of teacher preparation 
                programs within institutions of higher education in the 
                State. Such criteria shall include indicators of the 
                academic content knowledge and teaching skills of 
                students enrolled in such programs.
                    ``(G) For each teacher preparation program in the 
                State--
                          ``(i) the criteria for admission into the 
                      program;
                          ``(ii) the number of students in the program, 
                      disaggregated by race, ethnicity, and gender 
                      (except that such disaggregation shall not be 
                      required in a case in which the number of students 
                      in a category is insufficient to yield 
                      statistically reliable information or the results 
                      would reveal personally identifiable information 
                      about an individual student);

[[Page 122 STAT. 3151]]

                          ``(iii) the average number of hours of 
                      supervised clinical experience required for those 
                      in the program; and
                          ``(iv) the number of full-time equivalent 
                      faculty, adjunct faculty, and students in 
                      supervised clinical experience.
                    ``(H) For the State as a whole, and for each teacher 
                preparation program in the State, the number of teachers 
                prepared, in the aggregate and reported separately by--
                          ``(i) area of certification or licensure;
                          ``(ii) academic major; and
                          ``(iii) subject area for which the teacher has 
                      been prepared to teach.
                    ``(I) A description of the extent to which teacher 
                preparation programs are addressing shortages of highly 
                qualified teachers, by area of certification or 
                licensure, subject, and specialty, in the State's public 
                schools.
                    ``(J) The extent to which teacher preparation 
                programs prepare teachers, including general education 
                and special education teachers, to teach students with 
                disabilities effectively, including training related to 
                participation as a member of individualized education 
                program teams, as defined in section 614(d)(1)(B) of the 
                Individuals with Disabilities Education Act.
                    ``(K) A description of the activities that prepare 
                teachers to--
                          ``(i) integrate technology effectively into 
                      curricula and instruction, including activities 
                      consistent with the principles of universal design 
                      for learning; and
                          ``(ii) use technology effectively to collect, 
                      manage, and analyze data to improve teaching and 
                      learning for the purpose of increasing student 
                      academic achievement.
                    ``(L) The extent to which teacher preparation 
                programs prepare teachers, including general education 
                and special education teachers, to effectively teach 
                students who are limited English proficient.
            ``(2) Prohibition against creating a national list.--The 
        Secretary shall not create a national list or ranking of States, 
        institutions, or schools using the scaled scores provided under 
        this subsection.

    ``(c) Data Quality.--The <<NOTE: Regulations.>>  Secretary shall 
prescribe regulations to ensure the reliability, validity, integrity, 
and accuracy of the data submitted pursuant to this section.

    ``(d) Report of the Secretary on the Quality of Teacher 
Preparation.--
            ``(1) Report card.--The <<NOTE: Publication.>>  Secretary 
        shall annually provide to the authorizing committees, and 
        publish and make widely available, a report card on teacher 
        qualifications and preparation in the United States, including 
        all the information reported in subparagraphs (A) through (L) of 
        subsection (b)(1). Such report shall identify States for which 
        eligible partnerships received a grant under this part.
            ``(2) Report to congress.--The Secretary shall prepare and 
        submit a report to the authorizing committees that contains the 
        following:

[[Page 122 STAT. 3152]]

                    ``(A) A comparison of States' efforts to improve the 
                quality of the current and future teaching force.
                    ``(B) A comparison of eligible partnerships' efforts 
                to improve the quality of the current and future 
                teaching force.
                    ``(C) The national mean and median scaled scores and 
                pass rate on any standardized test that is used in more 
                than one State for teacher certification or licensure.
            ``(3) Special rule.--In <<NOTE: Publication. Public 
        information.>>  the case of a teacher preparation program with 
        fewer than ten scores reported on any single initial teacher 
        certification or licensure assessment during an academic year, 
        the Secretary shall collect and publish, and make publicly 
        available, information with respect to an average pass rate and 
        scaled score on each State certification or licensure assessment 
        taken over a three-year period.

    ``(e) Coordination.--The Secretary, to the extent practicable, shall 
coordinate the information collected and published under this part among 
States for individuals who took State teacher certification or licensure 
assessments in a State other than the State in which the individual 
received the individual's most recent degree.
``SEC. 206. <<NOTE: 20 USC 1022e.>>  TEACHER DEVELOPMENT.

    ``(a) Annual Goals.--Each institution of higher education that 
conducts a traditional teacher preparation program (including programs 
that offer any ongoing professional development programs) or alternative 
routes to State certification or licensure program, and that enrolls 
students receiving Federal assistance under this Act, shall set annual 
quantifiable goals for increasing the number of prospective teachers 
trained in teacher shortage areas designated by the Secretary or by the 
State educational agency, including mathematics, science, special 
education, and instruction of limited English proficient students.
    ``(b) Assurances.--Each institution described in subsection (a) 
shall provide assurances to the Secretary that--
            ``(1) training provided to prospective teachers responds to 
        the identified needs of the local educational agencies or States 
        where the institution's graduates are likely to teach, based on 
        past hiring and recruitment trends;
            ``(2) training provided to prospective teachers is closely 
        linked with the needs of schools and the instructional decisions 
        new teachers face in the classroom;
            ``(3) prospective special education teachers receive course 
        work in core academic subjects and receive training in providing 
        instruction in core academic subjects;
            ``(4) general education teachers receive training in 
        providing instruction to diverse populations, including children 
        with disabilities, limited English proficient students, and 
        children from low-income families; and
            ``(5) prospective teachers receive training on how to 
        effectively teach in urban and rural schools, as applicable.

    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to require an institution to create a new teacher preparation 
area of concentration or degree program or adopt a specific curriculum 
in complying with this section.
``SEC. 207. <<NOTE: 20 USC 1022f.>>  STATE FUNCTIONS.

    ``(a) State Assessment.--In order to receive funds under this Act, a 
State shall conduct an assessment to identify low-performing

[[Page 122 STAT. 3153]]

teacher preparation programs in the State and to assist such programs 
through the provision of technical assistance. Each such State shall 
provide the Secretary with an annual list of low-performing teacher 
preparation programs and an identification of those programs at risk of 
being placed on such list, as applicable. Such assessment shall be 
described in the report under section 205(b). Levels of performance 
shall be determined solely by the State and may include criteria based 
on information collected pursuant to this part, including progress in 
meeting the goals of--
            ``(1) increasing the percentage of highly qualified teachers 
        in the State, including increasing professional development 
        opportunities;
            ``(2) improving student academic achievement for elementary 
        and secondary students; and
            ``(3) raising the standards for entry into the teaching 
        profession.

    ``(b) Termination of Eligibility.--Any teacher preparation program 
from which the State has withdrawn the State's approval, or terminated 
the State's financial support, due to the low performance of the program 
based upon the State assessment described in subsection (a)--
            ``(1) shall be ineligible for any funding for professional 
        development activities awarded by the Department;
            ``(2) may not be permitted to accept or enroll any student 
        who receives aid under title IV in the institution's teacher 
        preparation program;
            ``(3) shall provide transitional support, including remedial 
        services if necessary, for students enrolled at the institution 
        at the time of termination of financial support or withdrawal of 
        approval; and
            ``(4) shall be reinstated upon demonstration of improved 
        performance, as determined by the State.

    ``(c) Negotiated Rulemaking.--If the Secretary develops any 
regulations implementing subsection (b)(2), the Secretary shall submit 
such proposed regulations to a negotiated rulemaking process, which 
shall include representatives of States, institutions of higher 
education, and educational and student organizations.
    ``(d) Application of the Requirements.--The requirements of this 
section shall apply to both traditional teacher preparation programs and 
alternative routes to State certification and licensure programs.
``SEC. 208. <<NOTE: 20 USC 1022g.>>  GENERAL PROVISIONS.

    ``(a) Methods.--In complying with sections 205 and 206, the 
Secretary shall ensure that States and institutions of higher education 
use fair and equitable methods in reporting and that the reporting 
methods do not reveal personally identifiable information.
    ``(b) Special Rule.--For each State that does not use content 
assessments as a means of ensuring that all teachers teaching in core 
academic subjects within the State are highly qualified, as required 
under section 1119 of the Elementary and Secondary Education Act of 
1965, in accordance with the State plan submitted or revised under 
section 1111 of such Act, and that each person employed as a special 
education teacher in the State who teaches elementary school or 
secondary school is highly qualified by the deadline, as required under 
section 612(a)(14)(C) of the Individuals with Disabilities Education 
Act, the Secretary shall--

[[Page 122 STAT. 3154]]

            ``(1) to the extent practicable, collect data comparable to 
        the data required under this part from States, local educational 
        agencies, institutions of higher education, or other entities 
        that administer such assessments to teachers or prospective 
        teachers; and
            ``(2) notwithstanding any other provision of this part, use 
        such data to carry out requirements of this part related to 
        assessments, pass rates, and scaled scores.

    ``(c) Release of Information to Teacher Preparation Programs.--
            ``(1) In general.--For the purpose of improving teacher 
        preparation programs, a State that receives funds under this 
        Act, or that participates as a member of a partnership, 
        consortium, or other entity that receives such funds, shall 
        provide to a teacher preparation program, upon the request of 
        the teacher preparation program, any and all pertinent 
        education-related information that--
                    ``(A) may enable the teacher preparation program to 
                evaluate the effectiveness of the program's graduates or 
                the program itself; and
                    ``(B) is possessed, controlled, or accessible by the 
                State.
            ``(2) Content of information.--The information described in 
        paragraph (1)--
                    ``(A) shall include an identification of specific 
                individuals who graduated from the teacher preparation 
                program to enable the teacher preparation program to 
                evaluate the information provided to the program from 
                the State with the program's own data about the specific 
                courses taken by, and field experiences of, the 
                individual graduates; and
                    ``(B) may include--
                          ``(i) kindergarten through grade 12 academic 
                      achievement and demographic data, without 
                      revealing personally identifiable information 
                      about an individual student, for students who have 
                      been taught by graduates of the teacher 
                      preparation program; and
                          ``(ii) teacher effectiveness evaluations for 
                      teachers who graduated from the teacher 
                      preparation program.
``SEC. 209. <<NOTE: 20 USC 1022h.>>  AUTHORIZATION OF 
                        APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$300,000,000 for fiscal year 2009 and such sums as may be necessary for 
each of the two succeeding fiscal years.''; and
            (3) <<NOTE: 20 USC 10413et seq.>>  by striking part B and 
        inserting the following:

                  ``PART B--ENHANCING TEACHER EDUCATION

``SEC. 230. <<NOTE: 20 USC 1031.>>  AUTHORIZATION OF 
                        APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

        ``Subpart 1--Preparing Teachers for Digital Age Learners

``SEC. 231. <<NOTE: 20 USC 1032.>>  PROGRAM AUTHORIZED.

    ``(a) Program Authority.--The Secretary is authorized to award 
grants to, or enter into contracts or cooperative agreements

[[Page 122 STAT. 3155]]

with, eligible consortia to pay the Federal share of the costs of 
projects to--
            ``(1) serve graduate teacher candidates who are prepared to 
        use modern information, communication, and learning tools to--
                    ``(A) improve student learning, assessment, and 
                learning management; and
                    ``(B) help students develop learning skills to 
                succeed in higher education and to enter the workforce;
            ``(2) strengthen and develop partnerships among the 
        stakeholders in teacher preparation to transform teacher 
        education and ensure technology-rich teaching and learning 
        environments throughout a teacher candidate's preservice 
        education, including clinical experiences; and
            ``(3) assess the effectiveness of departments, schools, and 
        colleges of education at institutions of higher education in 
        preparing teacher candidates for successful implementation of 
        technology-rich teaching and learning environments, including 
        environments consistent with the principles of universal design 
        for learning, that enable kindergarten through grade 12 students 
        to develop learning skills to succeed in higher education and to 
        enter the workforce.

    ``(b) Amount and Duration.--A grant, contract, or cooperative 
agreement under this subpart--
            ``(1) shall be for not more than $2,000,000;
            ``(2) shall be for a three-year period; and
            ``(3) may be renewed for one additional year.

    ``(c) Non-Federal Share Requirement.--The Federal share of the cost 
of any project funded under this subpart shall not exceed 75 percent. 
The non-Federal share of the cost of such project may be provided in 
cash or in kind, fairly evaluated, including services.
    ``(d) Definition of Eligible Consortium.--In this subpart, the term 
`eligible consortium' means a consortium of members that includes the 
following:
            ``(1) Not less than one institution of higher education that 
        awards baccalaureate or masters degrees and prepares teachers 
        for initial entry into teaching.
            ``(2) Not less than one State educational agency or local 
        educational agency.
            ``(3) A department, school, or college of education at an 
        institution of higher education.
            ``(4) A department, school, or college of arts and sciences 
        at an institution of higher education.
            ``(5) Not less than one entity with the capacity to 
        contribute to the technology-related reform of teacher 
        preparation programs, which may be a professional association, 
        foundation, museum, library, for-profit business, public or 
        private nonprofit organization, community-based organization, or 
        other entity.
``SEC. 232. <<NOTE: 20 USC 1032a.>>  USES OF FUNDS.

    ``(a) In General.--An eligible consortium that receives a grant or 
enters into a contract or cooperative agreement under this subpart shall 
use funds made available under this subpart to carry out a project 
that--
            ``(1) develops long-term partnerships among members of the 
        consortium that are focused on effective teaching with

[[Page 122 STAT. 3156]]

        modern digital tools and content that substantially connect 
        preservice preparation of teacher candidates with high-need 
        schools; or
            ``(2) transforms the way departments, schools, and colleges 
        of education teach classroom technology integration, including 
        the principles of universal design, to teacher candidates.

    ``(b) Uses of Funds for Partnership Grants.--In carrying out a 
project under subsection (a)(1), an eligible consortium shall--
            ``(1) provide teacher candidates, early in their 
        preparation, with field experiences with technology in 
        educational settings;
            ``(2) build the skills of teacher candidates to support 
        technology-rich instruction, assessment and learning management 
        in content areas, technology literacy, an understanding of the 
        principles of universal design, and the development of other 
        skills for entering the workforce;
            ``(3) provide professional development in the use of 
        technology for teachers, administrators, and content specialists 
        who participate in field placement;
            ``(4) provide professional development of technology 
        pedagogical skills for faculty of departments, schools, and 
        colleges of education and arts and sciences;
            ``(5) implement strategies for the mentoring of teacher 
        candidates by members of the consortium with respect to 
        technology implementation;
            ``(6) evaluate teacher candidates during the first years of 
        teaching to fully assess outcomes of the project;
            ``(7) build collaborative learning communities for 
        technology integration within the consortium to sustain 
        meaningful applications of technology in the classroom during 
        teacher preparation and early career practice; and
            ``(8) evaluate the effectiveness of the project.

    ``(c) Uses of Funds for Transformation Grants.--In carrying out a 
project under subsection (a)(2), an eligible consortium shall--
            ``(1) redesign curriculum to require collaboration between 
        the department, school, or college of education faculty and the 
        department, school, or college of arts and sciences faculty who 
        teach content or methods courses for training teacher 
        candidates;
            ``(2) collaborate between the department, school, or college 
        of education faculty and the department, school, or college of 
        arts and science faculty and academic content specialists at the 
        local educational agency to educate preservice teachers who can 
        integrate technology and pedagogical skills in content areas;
            ``(3) collaborate between the department, school, or college 
        of education faculty and the department, school, or college of 
        arts and sciences faculty who teach courses to preservice 
        teachers to--
                    ``(A) develop and implement a plan for preservice 
                teachers and continuing educators that demonstrates 
                effective instructional strategies and application of 
                such strategies in the use of digital tools to transform 
                the teaching and learning process; and
                    ``(B) better reach underrepresented preservice 
                teacher populations with programs that connect such 
                preservice teacher populations with applications of 
                technology;

[[Page 122 STAT. 3157]]

            ``(4) collaborate among faculty and students to create and 
        disseminate case studies of technology applications in classroom 
        settings with a goal of improving student academic achievement 
        in high-need schools;
            ``(5) provide additional technology resources for preservice 
        teachers to plan and implement technology applications in 
        classroom settings that provide evidence of student learning; 
        and
            ``(6) bring together expertise from departments, schools, or 
        colleges of education, arts and science faculty, and academic 
        content specialists at the local educational agency to share and 
        disseminate technology applications in the classroom through 
        teacher preparation and into early career practice.
``SEC. 233. <<NOTE: 20 USC 1032b.>>  APPLICATION REQUIREMENTS.

    ``To be eligible to receive a grant or enter into a contract or 
cooperative agreement under this subpart, an eligible consortium shall 
submit an application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. Such 
application shall include the following:
            ``(1) A description of the project to be carried out with 
        the grant, including how the project will--
                    ``(A) develop a long-term partnership focused on 
                effective teaching with modern digital tools and content 
                that substantially connects preservice preparation of 
                teacher candidates with high-need schools; or
                    ``(B) transform the way departments, schools, and 
                colleges of education teach classroom technology 
                integration, including the principles of universal 
                design, to teacher candidates.
            ``(2) A demonstration of--
                    ``(A) the commitment, including the financial 
                commitment, of each of the members of the consortium for 
                the proposed project; and
                    ``(B) the support of the leadership of each 
                organization that is a member of the consortium for the 
                proposed project.
            ``(3) A description of how each member of the consortium 
        will participate in the project.
            ``(4) A description of how the State educational agency or 
        local educational agency will incorporate the project into the 
        agency's technology plan, if such a plan already exists.
            ``(5) A description of how the project will be continued 
        after Federal funds are no longer available under this subpart 
        for the project.
            ``(6) A description of how the project will incorporate--
                    ``(A) State teacher technology standards; and
                    ``(B) State student technology standards.
            ``(7) A plan for the evaluation of the project, which shall 
        include benchmarks to monitor progress toward specific project 
        objectives.
``SEC. 234. <<NOTE: 20 USC 1032c.>>  EVALUATION.

    ``Not less than ten percent of the funds awarded to an eligible 
consortium to carry out a project under this subpart shall be used to 
evaluate the effectiveness of such project.

[[Page 122 STAT. 3158]]

    ``Subpart 2--Honorable Augustus F. Hawkins Centers of Excellence

``SEC. 241. <<NOTE: 20 USC 1033.>>  DEFINITIONS.

    ``In this subpart:
            ``(1) Eligible institution.--The term `eligible institution' 
        means--
                    ``(A) an institution of higher education that has a 
                teacher preparation program that is a qualified teacher 
                preparation program and that is--
                          ``(i) a part B institution (as defined in 
                      section 322);
                          ``(ii) a Hispanic-serving institution (as 
                      defined in section 502);
                          ``(iii) a Tribal College or University (as 
                      defined in section 316);
                          ``(iv) an Alaska Native-serving institution 
                      (as defined in section 317(b));
                          ``(v) a Native Hawaiian-serving institution 
                      (as defined in section 317(b));
                          ``(vi) a Predominantly Black Institution (as 
                      defined in section 318);
                          ``(vii) an Asian American and Native American 
                      Pacific Islander-serving institution (as defined 
                      in section 320(b)); or
                          ``(viii) a Native American-serving, nontribal 
                      institution (as defined in section 319);
                    ``(B) a consortium of institutions described in 
                subparagraph (A); or
                    ``(C) an institution described in subparagraph (A), 
                or a consortium described in subparagraph (B), in 
                partnership with any other institution of higher 
                education, but only if the center of excellence 
                established under section 242 is located at an 
                institution described in subparagraph (A).
            ``(2) Scientifically based reading research.--The term 
        `scientifically based reading research' has the meaning given 
        such term in section 1208 of the Elementary and Secondary 
        Education Act of 1965.
``SEC. 242. <<NOTE: 20 USC 1033a.>>  AUGUSTUS F. HAWKINS CENTERS 
                        OF EXCELLENCE.

    ``(a) Program Authorized.--From the amounts appropriated to carry 
out this part, the Secretary is authorized to award competitive grants 
to eligible institutions to establish centers of excellence.
    ``(b) Use of Funds.--Grants provided by the Secretary under this 
subpart shall be used to ensure that current and future teachers are 
highly qualified by carrying out one or more of the following 
activities:
            ``(1) Implementing reforms within teacher preparation 
        programs to ensure that such programs are preparing teachers who 
        are highly qualified, are able to understand scientifically 
        valid research, and are able to use advanced technology 
        effectively in the classroom, including use of instructional 
        techniques to improve student academic achievement, by--
                    ``(A) retraining or recruiting faculty; and
                    ``(B) designing (or redesigning) teacher preparation 
                programs that--
                          ``(i) prepare teachers to serve in low-
                      performing schools and close student achievement 
                      gaps, and that

[[Page 122 STAT. 3159]]

                      are based on rigorous academic content, 
                      scientifically valid research (including 
                      scientifically based reading research and 
                      mathematics research, as it becomes available), 
                      and challenging State academic content standards 
                      and student academic achievement standards; and
                          ``(ii) promote strong teaching skills.
            ``(2) Providing sustained and high-quality preservice 
        clinical experience, including the mentoring of prospective 
        teachers by exemplary teachers, substantially increasing 
        interaction between faculty at institutions of higher education 
        and new and experienced teachers, principals, and other 
        administrators at elementary schools or secondary schools, and 
        providing support, including preparation time, for such 
        interaction.
            ``(3) Developing and implementing initiatives to promote 
        retention of highly qualified teachers and principals, including 
        minority teachers and principals, including programs that 
        provide--
                    ``(A) teacher or principal mentoring from exemplary 
                teachers or principals, respectively; or
                    ``(B) induction and support for teachers and 
                principals during their first three years of employment 
                as teachers or principals, respectively.
            ``(4) Awarding scholarships based on financial need to help 
        students pay the costs of tuition, room, board, and other 
        expenses of completing a teacher preparation program, not to 
        exceed the cost of attendance.
            ``(5) Disseminating information on effective practices for 
        teacher preparation and successful teacher certification and 
        licensure assessment preparation strategies.
            ``(6) Activities authorized under section 202.

    ``(c) Application.--Any eligible institution desiring a grant under 
this subpart shall submit an application to the Secretary at such a 
time, in such a manner, and accompanied by such information as the 
Secretary may require.
    ``(d) Minimum Grant Amount.--The minimum amount of each grant under 
this subpart shall be $500,000.
    ``(e) Limitation on Administrative Expenses.--An eligible 
institution that receives a grant under this subpart may use not more 
than two percent of the funds provided to administer the grant.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out this subpart.

 ``Subpart 3--Preparing General Education Teachers to More Effectively 
                   Educate Students With Disabilities

``SEC. 251. <<NOTE: 20 USC 1034.>>  TEACH TO REACH GRANTS.

    ``(a) Authorization of Program.--
            ``(1) In general.--The Secretary is authorized to award 
        grants, on a competitive basis, to eligible partnerships to 
        improve the preparation of general education teacher candidates 
        to ensure that such teacher candidates possess the knowledge and 
        skills necessary to effectively instruct students with 
        disabilities in general education classrooms.

[[Page 122 STAT. 3160]]

            ``(2) Duration of grants.--A grant under this section shall 
        be awarded for a period of not more than five years.
            ``(3) Non-federal share.--An eligible partnership that 
        receives a grant under this section shall provide not less than 
        25 percent of the cost of the activities carried out with such 
        grant from non-Federal sources, which may be provided in cash or 
        in kind.

    ``(b) Definition of Eligible Partnership.--In this section, the term 
`eligible partnership' means a partnership that--
            ``(1) shall include--
                    ``(A) one or more departments or programs at an 
                institution of higher education--
                          ``(i) that prepare elementary or secondary 
                      general education teachers;
                          ``(ii) that have a program of study that leads 
                      to an undergraduate degree, a master's degree, or 
                      completion of a postbaccalaureate program required 
                      for teacher certification; and
                          ``(iii) the graduates of which are highly 
                      qualified;
                    ``(B) a department or program of special education 
                at an institution of higher education;
                    ``(C) a department or program at an institution of 
                higher education that provides degrees in core academic 
                subjects; and
                    ``(D) a high-need local educational agency; and
            ``(2) may include a department or program of mathematics, 
        earth or physical science, foreign language, or another 
        department at the institution that has a role in preparing 
        teachers.

    ``(c) Activities.--An eligible partnership that receives a grant 
under this section--
            ``(1) shall use the grant funds to--
                    ``(A) develop or strengthen an undergraduate, 
                postbaccalaureate, or master's teacher preparation 
                program by integrating special education strategies into 
                the general education curriculum and academic content;
                    ``(B) provide teacher candidates participating in 
                the program under subparagraph (A) with skills related 
                to--
                          ``(i) response to intervention, positive 
                      behavioral interventions and supports, 
                      differentiated instruction, and data driven 
                      instruction;
                          ``(ii) universal design for learning;
                          ``(iii) determining and utilizing 
                      accommodations for instruction and assessments;
                          ``(iv) collaborating with special educators, 
                      related services providers, and parents, including 
                      participation in individualized education program 
                      development and implementation; and
                          ``(v) appropriately utilizing technology and 
                      assistive technology for students with 
                      disabilities; and
                    ``(C) provide extensive clinical experience for 
                participants described in subparagraph (B) with 
                mentoring and induction support throughout the program 
                that continues during the first two years of full-time 
                teaching; and
            ``(2) may use grant funds to develop and administer 
        alternate assessments of students with disabilities.

    ``(d) Application.--An eligible partnership seeking a grant under 
this section shall submit an application to the Secretary

[[Page 122 STAT. 3161]]

at such time, in such manner, and containing such information as the 
Secretary may require. Such application shall include--
            ``(1) a self-assessment by the eligible partnership of the 
        existing teacher preparation program at the institution of 
        higher education and needs related to preparing general 
        education teacher candidates to instruct students with 
        disabilities; and
            ``(2) an assessment of the existing personnel needs for 
        general education teachers who instruct students with 
        disabilities, performed by the local educational agency in which 
        most graduates of the teacher preparation program are likely to 
        teach after completion of the program under subsection (c)(1).

    ``(e) Peer Review.--The Secretary shall convene a peer review 
committee to review applications for grants under this section and to 
make recommendations to the Secretary regarding the selection of 
grantees. Members of the peer review committee shall be recognized 
experts in the fields of special education, teacher preparation, and 
general education and shall not be in a position to benefit financially 
from any grants awarded under this section.
    ``(f) Evaluations.--
            ``(1) By the partnership.--
                    ``(A) In general.--An eligible partnership receiving 
                a grant under this section shall conduct an evaluation 
                at the end of the grant period to determine--
                          ``(i) the effectiveness of the general 
                      education teachers who completed a program under 
                      subsection (c)(1) with respect to instruction of 
                      students with disabilities in general education 
                      classrooms; and
                          ``(ii) the systemic impact of the activities 
                      carried out by such grant on how each institution 
                      of higher education that is a member of the 
                      partnership prepares teachers for instruction in 
                      elementary schools and secondary schools.
                    ``(B) Report to the secretary.--Each eligible 
                partnership performing an evaluation under subparagraph 
                (A) shall report the findings of such evaluation to the 
                Secretary.
            ``(2) Report by the secretary.--Not <<NOTE: Public 
        information.>>  later than 180 days after the last day of the 
        grant period under this section, the Secretary shall make 
        available to Congress and the public the findings of the 
        evaluations submitted under paragraph (1), and information on 
        best practices related to effective instruction of students with 
        disabilities in general education classrooms.

                   ``Subpart 4--Adjunct Teacher Corps

``SEC. 255. <<NOTE: 20 USC 1035.>>  ADJUNCT TEACHER CORPS.

    ``(a) Purpose.--The purpose of this section is to create 
opportunities for professionals and other individuals with subject 
matter expertise in mathematics, science, or critical foreign languages 
to provide such subject matter expertise to secondary school students on 
an adjunct basis.
    ``(b) Program Authorized.--The Secretary is authorized to award 
grants on a competitive basis to eligible entities to identify, recruit, 
and train qualified individuals with subject matter expertise in 
mathematics, science, or critical foreign languages to serve as adjunct 
content specialists.

[[Page 122 STAT. 3162]]

    ``(c) Duration of Grants.--The Secretary may award grants under this 
section for a period of not more than five years.
    ``(d) Eligible Entity.--In this section, the term `eligible entity' 
means--
            ``(1) a local educational agency; or
            ``(2) a partnership consisting of a local educational 
        agency, serving as a fiscal agent, and a public or private 
        educational organization or business.

    ``(e) Uses of Funds.--An eligible entity that receives a grant under 
this section is authorized to use such grant to carry out one or both of 
the following activities:
            ``(1) To develop the capacity of the eligible entity to 
        identify, recruit, and train individuals with subject matter 
        expertise in mathematics, science, or critical foreign languages 
        who are not employed in the elementary and secondary education 
        system (including individuals in business and government, and 
        individuals who would participate through distance-learning 
        arrangements) to become adjunct content specialists.
            ``(2) To provide preservice training and on-going 
        professional development to adjunct content specialists.

    ``(f) Applications.--
            ``(1) Application required.--An eligible entity that desires 
        a grant under this section shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(2) Contents.--An application submitted under paragraph 
        (1) shall include--
                    ``(A) a description of--
                          ``(i) the need for, and expected benefits of 
                      using, adjunct content specialists in the schools 
                      served by the local educational agency, which may 
                      include information on the difficulty the local 
                      educational agency faces in recruiting qualified 
                      faculty in mathematics, science, and critical 
                      foreign language courses;
                          ``(ii) measurable objectives for the 
                      activities supported by the grant, including the 
                      number of adjunct content specialists the eligible 
                      entity intends to place in schools and classrooms, 
                      and the gains in academic achievement expected as 
                      a result of the addition of such specialists;
                          ``(iii) how the eligible entity will establish 
                      criteria for and recruit the most qualified 
                      individuals and public or private organizations 
                      and businesses to participate in the activities 
                      supported by the grant;
                          ``(iv) how the eligible entity will provide 
                      preservice training and on-going professional 
                      development to adjunct content specialists to 
                      ensure that such specialists have the capacity to 
                      serve effectively;
                          ``(v) how the eligible entity will use funds 
                      received under this section, including how the 
                      eligible entity will evaluate the success of the 
                      activities supported by the grant; and
                          ``(vi) how the eligible entity will support 
                      and continue the activities supported by the grant 
                      after the grant has expired, including how such 
                      entity will seek support from other sources, such 
                      as State and local government and the private 
                      sector; and

[[Page 122 STAT. 3163]]

                    ``(B) an assurance that the use of adjunct content 
                specialists will not result in the displacement or 
                transfer of currently employed teachers nor a reduction 
                in the number of overall teachers in the district.

    ``(g) Priorities.--In awarding grants under this section, the 
Secretary shall give priority to eligible entities that demonstrate in 
the application for such a grant a plan to--
            ``(1) serve the schools served by the local educational 
        agency that have a large number or percentage of students 
        performing below grade level in mathematics, science, or 
        critical foreign language courses;
            ``(2) serve local educational agencies that have a large 
        number or percentage of students from low-income families; and
            ``(3) recruit and train individuals to serve as adjunct 
        content specialists in schools that have an insufficient number 
        of teachers in mathematics, science, or critical foreign 
        languages.

    ``(h) Matching Requirement.--Each eligible entity that receives a 
grant under this section shall provide, from non-Federal sources, an 
amount equal to 100 percent of the amount of such grant (in cash or in 
kind) to carry out the activities supported by such grant.
    ``(i) Performance Report.--Each eligible entity receiving a grant 
under this section shall prepare and submit to the Secretary a final 
report on the results of the activities supported by such grant, which 
shall contain such information as the Secretary may require, including 
any improvements in student academic achievement as a result of the use 
of adjunct content specialists.
    ``(j) Evaluation.--The <<NOTE: Reports.>>  Secretary shall evaluate 
the activities supported by grants under this section, including the 
impact of such activities on student academic achievement, and shall 
report the results of such evaluation to the authorizing committees.

    ``(k) Definition.--In this section, the term `adjunct content 
specialist' means an individual who--
            ``(1) meets the requirements of section 9101(23)(B)(ii) of 
        the Elementary and Secondary Education Act of 1965;
            ``(2) has demonstrated expertise in mathematics, science, or 
        a critical foreign language, as determined by the local 
        educational agency; and
            ``(3) is not the primary provider of instructional services 
        to a student, unless the adjunct content specialist is under the 
        direct supervision of a teacher who meets the requirements of 
        section 9101(23) of such Act.

``Subpart 5--Graduate Fellowships to Prepare Faculty in High-Need Areas 
                        at Colleges of Education

``SEC. 258. <<NOTE: 20 USC 1036.>>  GRADUATE FELLOWSHIPS TO 
                        PREPARE FACULTY IN HIGH-NEED AREAS AT 
                        COLLEGES OF EDUCATION.

    ``(a) Grants by Secretary.--The Secretary shall make grants to 
eligible institutions to enable such institutions to make graduate 
fellowship awards to qualified individuals in accordance with the 
provisions of this section.

[[Page 122 STAT. 3164]]

    ``(b) Eligible Institutions.--In this section, the term `eligible 
institution' means an institution of higher education, or a consortium 
of such institutions, that offers a program of postbaccalaureate study 
leading to a doctoral degree.
    ``(c) Applications.--An eligible institution that desires a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may reasonably require.
    ``(d) Types of Fellowships Supported.--
            ``(1) In general.--An eligible institution that receives a 
        grant under this section shall use the grant funds to provide 
        graduate fellowships to individuals who are preparing for the 
        professorate in order to prepare individuals to become highly 
        qualified elementary school and secondary school mathematics and 
        science teachers, special education teachers, and teachers who 
        provide instruction for limited English proficient students.
            ``(2) Types of study.--A graduate fellowship provided under 
        this section shall support an individual in pursuing 
        postbaccalaureate study, which leads to a doctoral degree and 
        may include a master's degree as part of such study, related to 
        teacher preparation and pedagogy in one of the following areas:
                    ``(A) Science, technology, engineering, or 
                mathematics, if the individual has completed a master's 
                degree in mathematics or science and is pursuing a 
                doctoral degree in mathematics, science, or education.
                    ``(B) Special education.
                    ``(C) The instruction of limited English proficient 
                students, including postbaccalaureate study in language 
                instruction educational programs.

    ``(e) Fellowship Terms and Conditions.--
            ``(1) Selection of fellows.--The Secretary shall ensure that 
        an eligible institution that receives a grant under this 
        section--
                    ``(A) shall provide graduate fellowship awards to 
                individuals who plan to pursue a career in instruction 
                at an institution of higher education that has a teacher 
                preparation program; and
                    ``(B) may not provide a graduate fellowship to an 
                otherwise eligible individual--
                          ``(i) during periods in which such individual 
                      is enrolled at an institution of higher education 
                      unless such individual is maintaining satisfactory 
                      academic progress in, and devoting full-time study 
                      or research to, the pursuit of the degree for 
                      which the fellowship support was provided; or
                          ``(ii) if the individual is engaged in gainful 
                      employment, other than part-time employment 
                      related to teaching, research, or a similar 
                      activity determined by the institution to be 
                      consistent with and supportive of the 
                      individuals's progress toward the degree for which 
                      the fellowship support was provided.
            ``(2) Amount of fellowship awards.--
                    ``(A) In general.--An eligible institution that 
                receives a grant under this section shall award stipends 
                to individuals who are provided graduate fellowships 
                under this section.

[[Page 122 STAT. 3165]]

                    ``(B) Awards based on need.--A stipend provided 
                under this section shall be in an amount equal to the 
                level of support provided by the National Science 
                Foundation graduate fellowships, except that such 
                stipend shall be adjusted as necessary so as not to 
                exceed the fellowship recipient's demonstrated need, as 
                determined by the institution of higher education where 
                the fellowship recipient is enrolled.
            ``(3) Service requirement.--
                    ``(A) Teaching required.--Each individual who 
                receives a graduate fellowship under this section and 
                earns a doctoral degree shall teach for one year at an 
                institution of higher education that has a teacher 
                preparation program for each year of fellowship support 
                received under this section.
                    ``(B) Institutional obligation.--Each eligible 
                institution that receives a grant under this section 
                shall provide an assurance to the Secretary that the 
                institution has inquired of and determined the decision 
                of each individual who has received a graduate 
                fellowship to, within three years of receiving a 
                doctoral degree, begin employment at an institution of 
                higher education that has a teacher preparation program, 
                as required by this section.
                    ``(C) Agreement required.--Prior to receiving an 
                initial graduate fellowship award, and upon the annual 
                renewal of the graduate fellowship award, an individual 
                selected to receive a graduate fellowship under this 
                section shall sign an agreement with the Secretary 
                agreeing to pursue a career in instruction at an 
                institution of higher education that has a teacher 
                preparation program in accordance with subparagraph (A).
                    ``(D) Failure to comply.--If an individual who 
                receives a graduate fellowship award under this section 
                fails to comply with the agreement signed pursuant to 
                subparagraph (C), the sum of the amounts of any graduate 
                fellowship award received by such recipient shall, upon 
                a determination of such a failure, be treated as a 
                Federal Direct Unsubsidized Stafford Loan under part D 
                of title IV, and shall be subject to repayment, together 
                with interest thereon accruing from the date of the 
                fellowship award, in accordance with terms and 
                conditions specified by the Secretary in regulations 
                under this subpart.
                    ``(E) Modified service requirement.--
                The <<NOTE: Waiver authority.>>  Secretary may waive or 
                modify the service requirement of this paragraph in 
                accordance with regulations promulgated by the Secretary 
                with respect to the criteria to determine the 
                circumstances under which compliance with such service 
                requirement is inequitable or represents a substantial 
                hardship. The Secretary may waive the service 
                requirement if compliance by the fellowship recipient is 
                determined to be inequitable or represent a substantial 
                hardship--
                          ``(i) because the individual is permanently 
                      and totally disabled at the time of the waiver 
                      request; or
                          ``(ii) based on documentation presented to the 
                      Secretary of substantial economic or personal 
                      hardship.

[[Page 122 STAT. 3166]]

    ``(f) Institutional Support for Fellows.--An eligible institution 
that receives a grant under this section may reserve not more than ten 
percent of the grant amount for academic and career transition support 
for graduate fellowship recipients and for meeting the institutional 
obligation described in subsection (e)(3)(B).
    ``(g) Restriction on Use of Funds.--An eligible institution that 
receives a grant under this section may not use grant funds for general 
operational overhead of the institution.

                      ``PART C--GENERAL PROVISIONS

``SEC. 261. <<NOTE: 20 USC 1041.>>  LIMITATIONS.

    ``(a) Federal Control Prohibited.--Nothing in this title shall be 
construed to permit, allow, encourage, or authorize any Federal control 
over any aspect of any private, religious, or home school, whether or 
not a home school is treated as a private school or home school under 
State law. This section shall not be construed to prohibit private, 
religious, or home schools from participation in programs or services 
under this title.
    ``(b) No Change in State Control Encouraged or Required.--Nothing in 
this title shall be construed to encourage or require any change in a 
State's treatment of any private, religious, or home school, whether or 
not a home school is treated as a private school or home school under 
State law.
    ``(c) National System of Teacher Certification or Licensure 
Prohibited.--Nothing in this title shall be construed to permit, allow, 
encourage, or authorize the Secretary to establish or support any 
national system of teacher certification or licensure.
    ``(d) Rule of Construction.--Nothing in this title shall be 
construed to alter or otherwise affect the rights, remedies, and 
procedures afforded to the employees of local educational agencies under 
Federal, State, or local laws (including applicable regulations or court 
orders) or under the terms of collective bargaining agreements, 
memoranda of understanding, or other agreements between such employees 
and their employers.''.

                      TITLE III--INSTITUTIONAL AID

SEC. 301. PROGRAM PURPOSE.

    Section 311 (20 U.S.C. 1057) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``351'' and 
                inserting ``391''; and
                    (B) in paragraph (3)(F), by inserting ``, including 
                services that will assist in the education of special 
                populations'' before the period; and
            (2) in subsection (c)--
                    (A) in paragraph (6), by inserting ``, including 
                innovative, customized, instruction courses designed to 
                help retain students and move the students rapidly into 
                core courses and through program completion, which may 
                include remedial education and English language 
                instruction'' before the period;
                    (B) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively;
                    (C) by inserting after paragraph (6) the following:

[[Page 122 STAT. 3167]]

            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students or the 
        students' families.'';
                    (D) in paragraph (12) (as redesignated by 
                subparagraph (B)), by striking ``distance learning 
                academic instruction capabilities'' and inserting 
                ``distance education technologies''; and
                    (E) in the matter preceding subparagraph (A) of 
                paragraph (13) (as redesignated by subparagraph (B)), by 
                striking ``subsection (c)'' and inserting ``subsection 
                (b) and section 391''.
SEC. 302. DEFINITIONS; ELIGIBILITY.

    Section 312 (20 U.S.C. 1058) is amended--
            (1) in subsection (b)(1)(A), by striking ``subsection (c) of 
        this section'' and inserting ``subsection (d)'';
            (2) in subsection (d)(2), by striking ``subdivision'' and 
        inserting ``paragraph'';
            (3) by redesignating subsection (g) as subsection (h); and
            (4) by inserting after subsection (f) the following:

    ``(g) Low-Income Individual.--For the purpose of this part, the term 
`low-income individual' means an individual from a family whose taxable 
income for the preceding year did not exceed 150 percent of an amount 
equal to the poverty level determined by using criteria of poverty 
established by the Bureau of the Census.''.
SEC. 303. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND 
                        UNIVERSITIES.

    Section 316 (20 U.S.C. 1059c) is amended--
            (1) by striking subsection (b)(3) and inserting the 
        following:
            ``(3) Tribal college or university.--The term `Tribal 
        College or University' means an institution that--
                    ``(A) qualifies for funding under the Tribally 
                Controlled Colleges and Universities Assistance Act of 
                1978 (25 U.S.C. 1801 et seq.) or the Navajo Community 
                College Assistance Act of 1978 (25 U.S.C. 640a note); or
                    ``(B) is cited in section 532 of the Equity in 
                Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 
                note).'';
            (2) in subsection (c)(2)--
                    (A) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) construction, maintenance, renovation, and 
                improvement in classrooms, libraries, laboratories, and 
                other instructional facilities, including purchase or 
                rental of telecommunications technology equipment or 
                services, and the acquisition of real property adjacent 
                to the campus of the institution on which to construct 
                such facilities;'';
                    (B) in subparagraph (C), by inserting before the 
                semicolon at the end the following: ``or in tribal 
                governance or tribal public policy'';
                    (C) in subparagraph (D), by inserting before the 
                semicolon the following: ``and instruction in tribal 
                governance or tribal public policy'';
                    (D) by redesignating subparagraphs (G), (H), (I), 
                (J), (K), and (L) as subparagraphs (H), (I), (J), (K), 
                (L), and (N), respectively;
                    (E) by inserting after subparagraph (F) the 
                following:

[[Page 122 STAT. 3168]]

                    ``(G) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students or the students' families;'';
                    (F) in subparagraph (L) (as redesignated by 
                subparagraph (D)), by striking ``and'' after the 
                semicolon;
                    (G) by inserting after subparagraph (L) (as 
                redesignated by subparagraph (D) and amended by 
                subparagraph (F)) the following:
                    ``(M) developing or improving facilities for 
                Internet use or other distance education technologies; 
                and''; and
                    (H) in subparagraph (N) (as redesignated by 
                subparagraph (D)), by striking ``subparagraphs (A) 
                through (K)'' and inserting ``subparagraphs (A) through 
                (M)''; and
            (3) by striking subsection (d) and inserting the following:

    ``(d) Application, Plan, and Allocation.--
            ``(1) Institutional eligibility.--To be eligible to receive 
        assistance under this section, a Tribal College or University 
        shall be an eligible institution under section 312(b).
            ``(2) Application.--
                    ``(A) In general.--A Tribal College or University 
                desiring to receive assistance under this section shall 
                submit an application to the Secretary at such time, in 
                such manner, and containing such information as the 
                Secretary may reasonably require.
                    ``(B) Streamlined process.--The Secretary shall 
                establish application requirements in such a manner as 
                to simplify and streamline the process for applying for 
                grants under this section.
            ``(3) Awards and allocations to institutions.--
                    ``(A) Construction grants.--
                          ``(i) In general.--Of the amount appropriated 
                      to carry out this section for any fiscal year, the 
                      Secretary may reserve 30 percent for the purpose 
                      of awarding one-year grants of not less than 
                      $1,000,000 to address construction, maintenance, 
                      and renovation needs at eligible institutions.
                          ``(ii) Preference.--In providing grants under 
                      clause (i) for any fiscal year, the Secretary 
                      shall give preference to eligible institutions 
                      that have not received an award under this section 
                      for a previous fiscal year.
                    ``(B) Allotment of remaining funds.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), the Secretary shall distribute the 
                      remaining funds appropriated for any fiscal year 
                      to each eligible institution as follows:
                                    ``(I) 60 percent of the remaining 
                                appropriated funds shall be distributed 
                                among the eligible Tribal Colleges and 
                                Universities on a pro rata basis, based 
                                on the respective Indian student counts 
                                (as defined in section 2(a) of the 
                                Tribally Controlled Colleges and 
                                Universities Assistance Act of 1978 (25 
                                U.S.C. 1801(a)) of the Tribal Colleges 
                                and Universities.
                                    ``(II) The remaining 40 percent 
                                shall be distributed in equal shares to 
                                the eligible Tribal Colleges and 
                                Universities.

[[Page 122 STAT. 3169]]

                          ``(ii) Minimum grant.--The amount distributed 
                      to a Tribal College or University under clause (i) 
                      shall not be less than $500,000.
            ``(4) Special rules.--
                    ``(A) Concurrent funding.--No Tribal College or 
                University that receives funds under this section shall 
                concurrently receive funds under any other provision of 
                this part, part B, or part A of title V.
                    ``(B) Exemption.--Section 313(d) shall not apply to 
                institutions that are eligible to receive funds under 
                this section.''.
SEC. 304. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

    Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended--
            (1) in subparagraph (G), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (H), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(I) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students or the students' families.''.
SEC. 305. PREDOMINANTLY BLACK INSTITUTIONS.

    (a) In General.--Part A of title III (20 U.S.C. 1057 et seq.) is 
amended by adding at the end the following:
``SEC. 318. <<NOTE: 20 USC 1059e.>>  PREDOMINANTLY BLACK 
                        INSTITUTIONS.

    ``(a) Purpose.--It is the purpose of this section to assist 
Predominantly Black Institutions in expanding educational opportunity 
through a program of Federal assistance.
    ``(b) Definitions.--In this section:
            ``(1) Eligible institution.--The term `eligible institution' 
        means an institution of higher education that--
                    ``(A) has an enrollment of needy undergraduate 
                students;
                    ``(B) has an average educational and general 
                expenditure that is low, per full-time equivalent 
                undergraduate student, in comparison with the average 
                educational and general expenditure per full-time 
                equivalent undergraduate student of institutions that 
                offer similar instruction, except that the Secretary may 
                apply the waiver requirements described in section 
                392(b) to this subparagraph in the same manner as the 
                Secretary applies the waiver requirements to section 
                312(b)(1)(B);
                    ``(C) has an enrollment of undergraduate students 
                that is not less than 40 percent Black American 
                students;
                    ``(D) is legally authorized to provide, and 
                provides, within the State an educational program for 
                which the institution of higher education awards a 
                baccalaureate degree or, in the case of a junior or 
                community college, an associate's degree;
                    ``(E) is accredited by a nationally recognized 
                accrediting agency or association determined by the 
                Secretary to be a reliable authority as to the quality 
                of training offered or is, according to such an agency 
                or association, making reasonable progress toward 
                accreditation; and

[[Page 122 STAT. 3170]]

                    ``(F) is not receiving assistance under part B or 
                part A of title V.
            ``(2) Enrollment of needy students.--The term `enrollment of 
        needy students' means the enrollment at an eligible institution 
        with respect to which not less than 50 percent of the 
        undergraduate students enrolled in an academic program leading 
        to a degree--
                    ``(A) in the second fiscal year preceding the fiscal 
                year for which the determination is made, were Federal 
                Pell Grant recipients for such year;
                    ``(B) come from families that receive benefits under 
                a means-tested Federal benefit program;
                    ``(C) attended a public or nonprofit private 
                secondary school that--
                          ``(i) is in the school district of a local 
                      educational agency that was eligible for 
                      assistance under part A of title I of the 
                      Elementary and Secondary Education Act of 1965 for 
                      any year during which the student attended such 
                      secondary school; and
                          ``(ii) for the purpose of this paragraph and 
                      for such year of attendance, was determined by the 
                      Secretary (pursuant to regulations and after 
                      consultation with the State educational agency of 
                      the State in which the school is located) to be a 
                      school in which the enrollment of children meeting 
                      a measure of poverty under section 1113(a)(5) of 
                      such Act exceeds 30 percent of the total 
                      enrollment of such school; or
                    ``(D) are first-generation college students and a 
                majority of such first-generation college students are 
                low-income individuals.
            ``(3) First-generation college student.--The term `first-
        generation college student' has the meaning given the term in 
        section 402A(h).
            ``(4) Low-income individual.--The term `low-income 
        individual' has the meaning given such term in section 402A(h).
            ``(5) Means-tested federal benefit program.--The term 
        `means-tested Federal benefit program' means a program of the 
        Federal Government, other than a program under title IV, in 
        which eligibility for the program's benefits, or the amount of 
        such benefits, are determined on the basis of income or 
        resources of the individual or family seeking the benefit.
            ``(6) Predominantly black institution.--The term 
        `Predominantly Black Institution' means an institution of higher 
        education, as defined in section 101(a)--
                    ``(A) that is an eligible institution with not less 
                than 1,000 undergraduate students;
                    ``(B) at which not less than 50 percent of the 
                undergraduate students enrolled at the eligible 
                institution are low-income individuals or first-
                generation college students; and
                    ``(C) at which not less than 50 percent of the 
                undergraduate students are enrolled in an educational 
                program leading to a bachelor's or associate's degree 
                that the eligible institution is licensed to award by 
                the State in which the eligible institution is located.
            ``(7) State.--The term `State' means each of the 50 States 
        and the District of Columbia.

[[Page 122 STAT. 3171]]

    ``(c) Grant Authority.--
            ``(1) In general.--The Secretary is authorized to award 
        grants, from allotments under subsection (e), to Predominantly 
        Black Institutions to enable the Predominantly Black 
        Institutions to carry out the authorized activities described in 
        subsection (d).
            ``(2) Priority.--In awarding grants under this section the 
        Secretary shall give priority to Predominantly Black 
        Institutions with large numbers or percentages of students 
        described in subsections (b)(1)(A) or (b)(1)(C). The level of 
        priority given to Predominantly Black Institutions with large 
        numbers or percentages of students described in subsection 
        (b)(1)(A) shall be twice the level of priority given to 
        Predominantly Black Institutions with large numbers or 
        percentages of students described in subsection (b)(1)(C).

    ``(d) Authorized Activities.--
            ``(1) Required activities.--Grant funds provided under this 
        section shall be used--
                    ``(A) to assist the Predominantly Black Institution 
                to plan, develop, undertake, and implement programs to 
                enhance the institution's capacity to serve more low- 
                and middle-income Black American students;
                    ``(B) to expand higher education opportunities for 
                students eligible to participate in programs under title 
                IV by encouraging college preparation and student 
                persistence in secondary school and postsecondary 
                education; and
                    ``(C) to strengthen the financial ability of the 
                Predominantly Black Institution to serve the academic 
                needs of the students described in subparagraphs (A) and 
                (B).
            ``(2) Additional activities.--Grant funds provided under 
        this section shall be used for one or more of the following 
        activities:
                    ``(A) The activities described in paragraphs (1) 
                through (12) of section 311(c).
                    ``(B) Academic instruction in disciplines in which 
                Black Americans are underrepresented.
                    ``(C) Establishing or enhancing a program of teacher 
                education designed to qualify students to teach in a 
                public elementary school or secondary school in the 
                State that shall include, as part of such program, 
                preparation for teacher certification or licensure.
                    ``(D) Establishing community outreach programs that 
                will encourage elementary school and secondary school 
                students to develop the academic skills and the interest 
                to pursue postsecondary education.
                    ``(E) Other activities proposed in the application 
                submitted pursuant to subsection (f) that--
                          ``(i) contribute to carrying out the purpose 
                      of this section; and
                          ``(ii) are approved by the Secretary as part 
                      of the review and approval of an application 
                      submitted under subsection (f).
            ``(3) Endowment fund.--
                    ``(A) In general.--A Predominantly Black Institution 
                may use not more than 20 percent of the grant funds 
                provided under this section to establish or increase an 
                endowment fund at the institution.

[[Page 122 STAT. 3172]]

                    ``(B) Matching requirement.--In order to be eligible 
                to use grant funds in accordance with subparagraph (A), 
                a Predominantly Black Institution shall provide matching 
                funds from non-Federal sources, in an amount equal to or 
                greater than the Federal funds used in accordance with 
                subparagraph (A), for the establishment or increase of 
                the endowment fund.
                    ``(C) Comparability.--The <<NOTE: Applicability.>>  
                provisions of part C, regarding the establishment or 
                increase of an endowment fund, that the Secretary 
                determines are not inconsistent with this subsection, 
                shall apply to funds used under subparagraph (A).
            ``(4) Limitation.--Not more than 50 percent of the grant 
        funds provided to a Predominantly Black Institution under this 
        section may be available for the purpose of constructing or 
        maintaining a classroom, library, laboratory, or other 
        instructional facility.

    ``(e) Allotments to Predominantly Black Institutions.--
            ``(1) Federal pell grant basis.--From the amounts 
        appropriated to carry out this section for any fiscal year, the 
        Secretary shall allot to each Predominantly Black Institution 
        having an application approved under subsection (f) a sum that 
        bears the same ratio to one-half of that amount as the number of 
        Federal Pell Grant recipients in attendance at such institution 
        at the end of the academic year preceding the beginning of that 
        fiscal year, bears to the total number of Federal Pell Grant 
        recipients at all such institutions at the end of such academic 
        year.
            ``(2) Graduates basis.--From the amounts appropriated to 
        carry out this section for any fiscal year, the Secretary shall 
        allot to each Predominantly Black Institution having an 
        application approved under subsection (f) a sum that bears the 
        same ratio to one-fourth of that amount as the number of 
        graduates for such academic year at such institution, bears to 
        the total number of graduates for such academic year at all such 
        institutions.
            ``(3) Graduates seeking a higher degree basis.--From the 
        amounts appropriated to carry out this section for any fiscal 
        year, the Secretary shall allot to each Predominantly Black 
        Institution having an application approved under subsection (f) 
        a sum that bears the same ratio to one-fourth of that amount as 
        the percentage of graduates from such institution who are 
        admitted to and in attendance at, not later than two years after 
        graduation with an associate's degree or a baccalaureate degree, 
        a baccalaureate degree-granting institution or a graduate or 
        professional school in a degree program in disciplines in which 
        Black American students are underrepresented, bears to the 
        percentage of such graduates for all such institutions.
            ``(4) Minimum allotment.--
                    ``(A) In general.--Notwithstanding paragraphs (1), 
                (2), and (3), the amount allotted to each Predominantly 
                Black Institution under this section may not be less 
                than $250,000.
                    ``(B) Insufficient amount.--If the amounts 
                appropriated to carry out this section for a fiscal year 
                are not sufficient to pay the minimum allotment provided 
                under

[[Page 122 STAT. 3173]]

                subparagraph (A) for the fiscal year, then the amount of 
                such minimum allotment shall be ratably reduced. If 
                additional sums become available for such fiscal year, 
                such reduced allotment shall be increased on the same 
                basis as the allotment was reduced until the amount 
                allotted equals the minimum allotment required under 
                subparagraph (A).
            ``(5) Reallotment.--The amount of a Predominantly Black 
        Institution's allotment under paragraph (1), (2), (3), or (4) 
        for any fiscal year that the Secretary determines will not be 
        needed for such institution for the period for which such 
        allotment is available, shall be available for reallotment to 
        other Predominantly Black Institutions in proportion to the 
        original allotments to such other institutions under this 
        section for such fiscal year. The Secretary shall reallot such 
        amounts from time to time, on such date and during such period 
        as the Secretary determines appropriate.

    ``(f) Applications.--Each Predominantly Black Institution desiring a 
grant under this section shall submit an application to the Secretary at 
such time, in such manner, and containing or accompanied by such 
information as the Secretary may reasonably require.
    ``(g) Application Review Process.--Section 393 shall not apply to 
applications under this section.
    ``(h) Duration and Carryover.--Any grant funds paid to a 
Predominantly Black Institution under this section that are not expended 
or used for the purposes for which the funds were paid within ten years 
following the date on which the grant was awarded, shall be repaid to 
the Treasury.
    ``(i) Special Rule on Eligibility.--No Predominantly Black 
Institution that receives funds under this section shall concurrently 
receive funds under any other provision of this part, part B, or part A 
of title V.''.
    (b) Conforming Amendment.--Section 312(d) (20 U.S.C. 1058(d)) is 
amended by striking ``For the purpose'' and inserting ``Except as 
provided in section 318(b), for the purpose''.
SEC. 306. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.

    Part A of title III (20 U.S.C. 1057 et seq.) is amended by adding 
after section 318 (as added by section 305 of this Act) the following:
``SEC. 319. <<NOTE: 20 USC 1059f.>>  NATIVE AMERICAN-SERVING, 
                        NONTRIBAL INSTITUTIONS.

    ``(a) Program Authorized.--The <<NOTE: Grants.>>  Secretary shall 
provide grants and related assistance to Native American-serving, 
nontribal institutions to enable such institutions to improve and expand 
their capacity to serve Native Americans and low-income individuals.

    ``(b) Definitions.--In this section:
            ``(1) Native american.--The term `Native American' means an 
        individual who is of a tribe, people, or culture that is 
        indigenous to the United States.
            ``(2) Native american-serving, nontribal institution.--The 
        term `Native American-serving, nontribal institution' means an 
        institution of higher education, as defined in section 101(a), 
        that, at the time of application--
                    ``(A) is an eligible institution under section 
                312(b);

[[Page 122 STAT. 3174]]

                    ``(B) has an enrollment of undergraduate students 
                that is not less than 10 percent Native American 
                students; and
                    ``(C) is not a Tribal College or University (as 
                defined in section 316).

    ``(c) Authorized Activities.--
            ``(1) Types of activities authorized.--Grants awarded under 
        this section shall be used by Native American-serving, nontribal 
        institutions to assist such institutions to plan, develop, 
        undertake, and carry out activities to improve and expand such 
        institutions' capacity to serve Native Americans and low-income 
        individuals.
            ``(2) Examples of authorized activities.--Such programs may 
        include--
                    ``(A) the purchase, rental, or lease of scientific 
                or laboratory equipment for educational purposes, 
                including instructional and research purposes;
                    ``(B) renovation and improvement in classroom, 
                library, laboratory, and other instructional facilities;
                    ``(C) support of faculty exchanges, and faculty 
                development and faculty fellowships to assist faculty in 
                attaining advanced degrees in the faculty's field of 
                instruction;
                    ``(D) curriculum development and academic 
                instruction;
                    ``(E) the purchase of library books, periodicals, 
                microfilm, and other educational materials;
                    ``(F) funds and administrative management, and 
                acquisition of equipment for use in strengthening funds 
                management;
                    ``(G) the joint use of facilities such as 
                laboratories and libraries;
                    ``(H) academic tutoring and counseling programs and 
                student support services; and
                    ``(I) education or counseling services designed to 
                improve the financial and economic literacy of students 
                or the students' families.

    ``(d) Application Process.--
            ``(1) Institutional eligibility.--A Native American-serving, 
        nontribal institution desiring to receive assistance under this 
        section shall submit to the Secretary such enrollment data as 
        may be necessary to demonstrate that the institution is a Native 
        American-serving, nontribal institution, along with such other 
        information and data as the Secretary may reasonably require.
            ``(2) Applications.--
                    ``(A) Authority to submit applications.--Any 
                institution that is determined by the Secretary to be a 
                Native American-serving, nontribal institution may 
                submit an application for assistance under this section 
                to the Secretary.
                    ``(B) Simplified and streamlined format.--The 
                Secretary shall, to the extent possible, continue to 
                prescribe a simplified and streamlined format for 
                applications under this section that takes into account 
                the limited number of institutions that are eligible for 
                assistance under this section.
                    ``(C) Content.--An application submitted under 
                subparagraph (A) shall include--

[[Page 122 STAT. 3175]]

                          ``(i) a five-year plan for improving the 
                      assistance provided by the Native American-
                      serving, nontribal institution to Native Americans 
                      and low-income individuals; and
                          ``(ii) such other information and assurances 
                      as the Secretary may reasonably require.
            ``(3) Special rules.--
                    ``(A) Eligibility.--No Native American-serving, 
                nontribal institution that receives funds under this 
                section shall concurrently receive funds under any other 
                provision of this part, part B, or part A of title V.
                    ``(B) Exemption.--Section 313(d) shall not apply to 
                institutions that are eligible to receive funds under 
                this section.
                    ``(C) Distribution.--In awarding grants under this 
                section, the Secretary shall, to the extent possible and 
                consistent with the competitive process under which such 
                grants are awarded, ensure maximum and equitable 
                distribution among all eligible institutions.
                    ``(D) Minimum grant amount.--The minimum amount of a 
                grant under this section shall be $200,000.''.
SEC. 307. ASSISTANCE TO ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC 
                        ISLANDER-SERVING INSTITUTIONS.

    Part A of title III (20 U.S.C. 1057 et seq.) is amended by adding 
after section 319 (as added by section 306 of this Act) the following:
``SEC. 320. <<NOTE: 20 USC 1059g.>>  ASIAN AMERICAN AND NATIVE 
                        AMERICAN PACIFIC ISLANDER-SERVING 
                        INSTITUTIONS.

    ``(a) Program Authorized.--The <<NOTE: Grants.>>  Secretary shall 
provide grants and related assistance to Asian American and Native 
American Pacific Islander-serving institutions to enable such 
institutions to improve and expand their capacity to serve Asian 
Americans and Native American Pacific Islanders and low-income 
individuals.

    ``(b) Definitions.--In this section:
            ``(1) Asian american.--The term `Asian American' has the 
        meaning given the term `Asian' in the Office of Management and 
        Budget's Standards for Maintaining, Collecting, and Presenting 
        Federal Data on Race and Ethnicity as published on October 30, 
        1997 (62 Fed. Reg. 58789).
            ``(2) Asian american and native american pacific islander-
        serving institution.--The term `Asian American and Native 
        American Pacific Islander-serving institution' means an 
        institution of higher education that--
                    ``(A) is an eligible institution under section 
                312(b); and
                    ``(B) at the time of application, has an enrollment 
                of undergraduate students that is not less than 10 
                percent students who are Asian American or Native 
                American Pacific Islander.
            ``(3) Native american pacific islander.--The term `Native 
        American Pacific Islander' means any descendant of the 
        aboriginal people of any island in the Pacific Ocean that is a 
        territory or possession of the United States.

    ``(c) Authorized Activities.--
            ``(1) Types of activities authorized.--Grants awarded under 
        this section shall be used by Asian American and Native American 
        Pacific Islander-serving institutions to assist such

[[Page 122 STAT. 3176]]

        institutions to plan, develop, undertake, and carry out 
        activities to improve and expand such institutions' capacity to 
        serve Asian Americans and Native American Pacific Islanders and 
        low-income individuals.
            ``(2) Examples of authorized activities.--Such programs may 
        include--
                    ``(A) purchase, rental, or lease of scientific or 
                laboratory equipment for educational purposes, including 
                instructional and research purposes;
                    ``(B) renovation and improvement in classroom, 
                library, laboratory, and other instructional facilities;
                    ``(C) support of faculty exchanges, and faculty 
                development and faculty fellowships to assist in 
                attaining advanced degrees in the faculty's field of 
                instruction;
                    ``(D) curriculum development and academic 
                instruction;
                    ``(E) purchase of library books, periodicals, 
                microfilm, and other educational materials;
                    ``(F) funds and administrative management, and 
                acquisition of equipment for use in strengthening funds 
                management;
                    ``(G) joint use of facilities such as laboratories 
                and libraries;
                    ``(H) academic tutoring and counseling programs and 
                student support services;
                    ``(I) establishing community outreach programs that 
                will encourage elementary school and secondary school 
                students to develop the academic skills and the interest 
                to pursue postsecondary education;
                    ``(J) establishing or improving an endowment fund;
                    ``(K) academic instruction in disciplines in which 
                Asian Americans and Native American Pacific Islanders 
                are underrepresented;
                    ``(L) conducting research and data collection for 
                Asian American and Native American Pacific Islander 
                populations and subpopulations;
                    ``(M) establishing partnerships with community-based 
                organizations serving Asian Americans and Native 
                American Pacific Islanders; and
                    ``(N) education or counseling services designed to 
                improve the financial and economic literacy of students 
                or the students' families.

    ``(d) Application Process.--
            ``(1) Institutional eligibility.--Each Asian American and 
        Native American Pacific Islander-serving institution desiring to 
        receive assistance under this section shall submit to the 
        Secretary such enrollment data as may be necessary to 
        demonstrate that the institution is an Asian American and Native 
        American Pacific Islander-serving institution as defined in 
        subsection (b), along with such other information and data as 
        the Secretary may reasonably require.
            ``(2) Applications.--Any institution that is determined by 
        the Secretary to be an Asian American and Native American 
        Pacific Islander-serving institution may submit an application 
        for assistance under this section to the Secretary. Such 
        application shall include--
                    ``(A) a five-year plan for improving the assistance 
                provided by the Asian American and Native American 
                Pacific

[[Page 122 STAT. 3177]]

                Islander-serving institution to Asian American and 
                Native American Pacific Islander students and low-income 
                individuals; and
                    ``(B) such other information and assurances as the 
                Secretary may reasonably require.
            ``(3) Special rules.--
                    ``(A) Eligibility.--No Asian American and Native 
                American Pacific Islander-serving institution that 
                receives funds under this section shall concurrently 
                receive funds under any other provision of this part, 
                part B, or title V.
                    ``(B) Exemption.--Section 313(d) shall not apply to 
                institutions that are eligible to receive funds under 
                this section.
                    ``(C) Distribution.--In awarding grants under this 
                section, the Secretary shall--
                          ``(i) to the extent possible and consistent 
                      with the competitive process under which such 
                      grants are awarded, ensure maximum and equitable 
                      distribution among all eligible institutions; and
                          ``(ii) give priority consideration to 
                      institutions for which not less than 10 percent of 
                      such institution's Asian American and Native 
                      American Pacific Islander students are low-income 
                      individuals.''.
SEC. 308. PART B DEFINITIONS.

    Section 322(4) (20 U.S.C. 1061(4)) is amended by inserting ``, in 
consultation with the Commissioner for Education Statistics'' before 
``and the Commissioner''.
SEC. 309. GRANTS TO INSTITUTIONS.

    Section 323(a) (20 U.S.C. 1062(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``360(a)(2)'' and inserting ``399(a)(2)'';
            (2) by redesignating paragraph (12) as paragraphs (15); and
            (3) by inserting after paragraph (11) the following:
            ``(12) Acquisition of real property in connection with the 
        construction, renovation, or addition to or improvement of 
        campus facilities.
            ``(13) Education or financial information designed to 
        improve the financial literacy and economic literacy of students 
        or the students' families, especially with regard to student 
        indebtedness and student assistance programs under title IV.
            ``(14) Services necessary for the implementation of projects 
        or activities that are described in the grant application and 
        that are approved, in advance, by the Secretary, except that not 
        more than two percent of the grant amount may be used for this 
        purpose.''.
SEC. 310. ALLOTMENTS.

    (a) Minimum Allotment.--Subsection (d) of section 324 (20 U.S.C. 
1063(d)) is amended to read as follows:
    ``(d) Minimum Allotment.--Notwithstanding subsections (a) through 
(c), and subject to subsection (h), if the amount of an award under this 
section for a part B institution, based on the data provided by the part 
B institution and the formula under subsections (a) through (c), would 
be--

[[Page 122 STAT. 3178]]

            ``(1) an amount that is greater than $250,000 but less than 
        $500,000, the Secretary shall award the part B institution an 
        allotment in the amount of $500,000; and
            ``(2) an amount that is equal to or less than $250,000, the 
        Secretary shall award the part B institution an allotment in the 
        amount of $250,000.''.

    (b) Conditions for Allotments.--Section 324 (20 U.S.C. 1063) is 
further amended by adding at the end the following new subsection:
    ``(h) Conditions for Allotments.--
            ``(1) Student requirements for allotment.--Notwithstanding 
        any other provision of this section, a part B institution that 
        would otherwise be eligible for funds under this part shall not 
        receive an allotment under this part for a fiscal year, 
        including the minimum allotment under subsection (d), if the 
        part B institution, in the academic year preceding such fiscal 
        year--
                    ``(A) did not have any enrolled students who were 
                Pell Grant recipients;
                    ``(B) did not graduate any students; or
                    ``(C) where appropriate, did not have any students 
                who, within 5 years of graduation from the part B 
                institution, were admitted to and in attendance at a 
                graduate or professional school in a degree program in 
                disciplines in which Blacks are underrepresented.
            ``(2) Data requirements for allotments.--Notwithstanding any 
        other provision of this section, a part B institution shall not 
        receive an allotment under this part for a fiscal year, 
        including the minimum allotment under subsection (d), unless the 
        institution provides the Secretary with the data required by the 
        Secretary and for purposes of the formula described in 
        subsections (a) through (c), including--
                    ``(A) the number of Pell Grant recipients enrolled 
                in the part B institution in the academic year preceding 
                such fiscal year;
                    ``(B) the number of students who earned an associate 
                or baccalaureate degree from the part B institution in 
                the academic year preceding such fiscal year; and
                    ``(C) where appropriate, the percentage of students 
                who, within 5 years of graduation from the part B 
                institution, were admitted to and in attendance at a 
                graduate or professional school in a degree program in 
                disciplines in which Blacks are underrepresented in the 
                academic year preceding such fiscal year.''.
SEC. 311. PROFESSIONAL OR GRADUATE INSTITUTIONS.

    (a) Duration of Grant.--Section 326(b) (20 U.S.C. 1063b(b)) is 
amended by adding at the end the following: ``Any funds awarded for such 
five-year grant period that are obligated during such five-year period 
may be expended during the 10-year period beginning on the first day of 
such five-year period.''.
    (b) Authorized Activities.--Section 326(c) (20 U.S.C. 1063b(c)) is 
amended--
            (1) in paragraph (5), by striking ``establish or improve'' 
        and inserting ``establishing or improving'';
            (2) in paragraph (6)--
                    (A) by striking ``assist'' and inserting 
                ``assisting''; and

[[Page 122 STAT. 3179]]

                    (B) by striking ``and'' after the semicolon;
            (3) by striking the period at the end of paragraph (7) and 
        inserting a semicolon; and
            (4) by adding at the end the following:
            ``(8) acquisition of real property that is adjacent to the 
        campus in connection with the construction, renovation, or 
        addition to or improvement of campus facilities;
            ``(9) education or financial information designed to improve 
        the financial literacy and economic literacy of students or the 
        students' families, especially with regard to student 
        indebtedness and student assistance programs under title IV;
            ``(10) services necessary for the implementation of projects 
        or activities that are described in the grant application and 
        that are approved, in advance, by the Secretary, except that not 
        more than two percent of the grant amount may be used for this 
        purpose;
            ``(11) tutoring, counseling, and student service programs 
        designed to improve academic success; and
            ``(12) other activities proposed in the application 
        submitted under subsection (d) that--
                    ``(A) contribute to carrying out the purposes of 
                this part; and
                    ``(B) are approved by the Secretary as part of the 
                review and acceptance of such application.''.

    (c) Eligibility.--
            (1) In general.--Section 326(e)(1) (20 U.S.C. 1063b(e)(1)) 
        is amended--
                    (A) in the matter preceding subparagraph (A), by 
                inserting a colon after ``the following'';
                    (B) in subparagraph (Q), by striking ``and'' at the 
                end;
                    (C) in subparagraph (R), by striking the period at 
                the end and inserting a semicolon; and
                    (D) by adding at the end the following:
                    ``(S) Alabama State University qualified graduate 
                programs;
                    ``(T) Prairie View A&M University qualified graduate 
                programs;
                    ``(U) Delaware State University qualified graduate 
                programs;
                    ``(V) Langston University qualified graduate 
                programs;
                    ``(W) Bowie State University qualified graduate 
                programs; and
                    ``(X) University of the District of Columbia David 
                A. Clarke School of Law.''.
            (2) Conforming amendment.--Section 326(e)(3) (20 U.S.C. 
        1063b(e)(3)) is amended--
                    (A) by striking ``1998'' and inserting ``2008''; and
                    (B) by striking ``(Q) and (R)'' and inserting ``(S) 
                through (X)''.
            (3) Additional eligibility changes.--Section 326(e)(2)(A) 
        (20 U.S.C. 1063b(e)(2)(A)) is amended--
                    (A) by inserting ``in law or'' after 
                ``instruction''; and
                    (B) by striking ``mathematics, or'' and inserting 
                ``mathematics, psychometrics, or''.
            (4) One grant per institution.--Section 326(e)(4) (20 U.S.C. 
        1063b(e)(4)) is amended by striking ``or university system''.

[[Page 122 STAT. 3180]]

    (d) Funding Rule.--Section 326(f) (20 U.S.C. 1063b(f)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``$26,600,000'' and inserting 
                ``$56,900,000''; and
                    (B) by striking ``(P)'' and inserting ``(R)'';
            (2) in paragraph (2)--
                    (A) by striking ``$26,600,000, but not in excess of 
                $28,600,000'' and inserting ``$56,900,000, but not in 
                excess of $62,900,000''; and
                    (B) by striking ``subparagraphs (Q) and (R)'' and 
                inserting ``subparagraphs (S) through (X)''; and
            (3) in the matter preceding subparagraph (A) of paragraph 
        (3)--
                    (A) by striking ``$28,600,000'' and inserting 
                ``$62,900,000''; and
                    (B) by striking ``(R)'' and inserting ``(X)''.

    (e) Hold Harmless Rule.--Section 326(g) <<NOTE: 20 USC 1063b.>> (20 
U.S.C. 1063(g)) is amended by striking ``1998'' each place it appears 
and inserting ``2008''.

    (f) Interaction With Other Grant Programs.--Section 326 (as amended 
by this section) (20 U.S.C. 1063) <<NOTE: 20 USC 1063b.>> is further 
amended by adding at the end the following:

    ``(h) Interaction With Other Grant Programs.--No institution that is 
eligible for and receives an award under section 512, 723, or 724 for a 
fiscal year shall be eligible to apply for a grant, or receive grant 
funds, under this section for the same fiscal year.''.
SEC. 312. UNEXPENDED FUNDS.

    Section 327(b) (20 U.S.C. 1063c(b)) is amended to read as follows:
    ``(b) Use of Unexpended Funds.--Any funds paid to an institution and 
not expended or used for the purposes for which the funds were paid 
during the five-year period following the date of the initial grant 
award, may be carried over and expended during the succeeding five-year 
period, if such funds were obligated for a purpose for which the funds 
were paid during the five-year period following the date of the initial 
grant award.''.
SEC. 313. ENDOWMENT CHALLENGE GRANTS.

    (a) Amounts.--Section 331(b) (20 U.S.C. 1065(b)) is amended--
            (1) in paragraph (2)(B)(i), by striking ``$500,000'' and 
        inserting ``$1,000,000''; and
            (2) in paragraph (5), by striking ``$50,000'' and inserting 
        ``$100,000''.

    (b) Technical Assistance.--Section 331 (20 U.S.C. 1065) is further 
amended by adding at the end the following:
    ``(i) Technical Assistance.--The Secretary, directly or by grant or 
contract, may provide technical assistance to eligible institutions to 
prepare the institutions to qualify, apply for, and maintain a grant, 
under this section.''.
SEC. 314. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL 
                        FINANCING.

    (a) Definitions.--Section 342 (20 U.S.C. 1066a) is amended--
            (1) in paragraph (5)(G), by striking ``by a nationally 
        recognized accrediting agency or association'' and inserting 
        ``by an

[[Page 122 STAT. 3181]]

        accrediting agency or association recognized by the Secretary 
        under subpart 2 of part H of title IV''; and
            (2) in paragraph (8), by inserting ``capital project'' after 
        ``issuing taxable''.

    (b) Federal Insurance for Bonds.--Section 343(b) (20 U.S.C. 
1066b(b)) is amended--
            (1) in paragraph (8)(B)(ii)--
                    (A) by striking ``10'' and inserting ``5''; and
                    (B) by inserting ``within 120 days'' after ``loan 
                proceeds'';
            (2) in paragraph (10), by striking ``and'' after the 
        semicolon;
            (3) in paragraph (11), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(12) limit loan collateralization, with respect to any 
        loan made under this part, to 100 percent of the loan amount, 
        except as otherwise required by the Secretary.''.

    (c) Limitations on Federal Insurance for Bonds Issued by the 
Designated Bonding Authority.--Section 344(a) (20 U.S.C. 1066c(a)) is 
amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``$375,000,000'' and inserting ``$1,100,000,000'';
            (2) in paragraph (1), by striking ``$250,000,000'' and 
        inserting ``$733,333,333''; and
            (3) in paragraph (2), by striking ``$125,000,000'' and 
        inserting ``$366,666,667''.

    (d) Authority of the Secretary.--Section 345 (20 U.S.C. 1066d) is 
amended--
            (1) in paragraph (1), by striking ``enactment of the Higher 
        Education Amendments of 1992,'' and inserting ``the date of 
        enactment of the Higher Education Opportunity Act,'';
            (2) by redesignating paragraphs (2) through (7) as 
        paragraphs (4) through (9), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) shall ensure that--
                    ``(A) the selection process for the designated 
                bonding authority is conducted on a competitive basis; 
                and
                    ``(B) the evaluation and selection process is 
                transparent;
            ``(3) shall--
                    ``(A) review the performance of the designated 
                bonding authority after the third year of the insurance 
                agreement; and
                    ``(B) following the review described in subparagraph 
                (A), implement a revised competitive selection process, 
                if determined necessary by the Secretary in consultation 
                with the Advisory Board established pursuant to section 
                347;'';
            (4) in paragraph (8) (as redesignated by paragraph (2)), by 
        striking ``and'' after the semicolon;
            (5) in paragraph (9) (as redesignated by paragraph (2)), by 
        striking the period at the end and inserting ``; and''; and
            (6) by adding at the end the following:
            ``(10) <<NOTE: Deadline. Reports.>> not later than 120 days 
        after the date of enactment of the Higher Education Opportunity 
        Act, shall submit to the authorizing committees a report on the 
        progress of the Department in implementing the recommendations 
        made by the Government Accountability Office in October 2006 for

[[Page 122 STAT. 3182]]

        improving the Historically Black College and Universities 
        Capital Financing Program.''.

    (e) HBCU Capital Financing Advisory Board.--Section 347 (20 U.S.C. 
1066f) is amended--
            (1) in subsection (b)(1)--
                    (A) by striking out ``9 members'' and inserting ``11 
                members'';
                    (B) in subparagraph (C), by striking ``Two'' and 
                inserting ``Three''; and
                    (C) by adding at the end the following:
                    ``(G) The president of the Thurgood Marshall College 
                Fund, or the designee of the president.''; and
            (2) by adding at the end the following:

    ``(c) Additional Recommendations From Advisory Board.--
            ``(1) In general.--In addition to the responsibilities of 
        the Advisory Board described in subsection (a), the Advisory 
        Board shall advise the Secretary and the authorizing committees 
        regarding--
                    ``(A) the fiscal status and strategic financial 
                condition of not less than ten historically Black 
                colleges and universities that have--
                          ``(i) obtained construction financing through 
                      the program under this part and seek additional 
                      financing or refinancing under such program; or
                          ``(ii) applied for construction financing 
                      through the program under this part but have not 
                      received financing under such program; and
                    ``(B) the feasibility of reducing borrowing costs 
                associated with the program under this part, including 
                reducing interest rates.
            ``(2) Report.--Not later than six months after the date of 
        enactment of the Higher Education Opportunity Act, the Advisory 
        Board shall prepare and submit a report to the authorizing 
        committees regarding the historically Black colleges and 
        universities described in paragraph (1)(A) that includes 
        administrative and legislative recommendations for addressing 
        the issues related to construction financing facing such 
        historically Black colleges and universities.''.
SEC. 315. PROGRAMS IN STEM FIELDS.

    (a) YES Partnerships; Entry Into STEM Fields.--Part E of title III 
(20 U.S.C. 1067 et seq.) is amended--
            (1) by redesignating subpart 2 as subpart 3; and
            (2) by inserting after subpart 1 the following new subpart:

                  ``Subpart 2--Programs in STEM Fields

``SEC. 355. <<NOTE: 20 USC 1067e.>> YES PARTNERSHIPS GRANT 
                        PROGRAM.

    ``(a) Grant Program Authorized.--Subject to the availability of 
appropriations to carry out this subpart, the Secretary shall make 
grants to eligible partnerships (as described in subsection (f)) to 
support the engagement of underrepresented minority youth and youth who 
are low-income individuals (as such term is defined in section 302) in 
science, technology, engineering, and mathematics through outreach and 
hands-on, experiential-based learning projects that encourage students 
in kindergarten through grade 12 who are underrepresented minority youth 
or low-income individuals to

[[Page 122 STAT. 3183]]

pursue careers in science, technology, engineering, and mathematics.
    ``(b) Minimum Grant Amount.--A grant awarded to a partnership under 
this subpart shall be for an amount that is not less than $500,000.
    ``(c) Duration.--A grant awarded under this subpart shall be for a 
period of five years.
    ``(d) Non-Federal Matching Share Required.--A partnership receiving 
a grant under this subpart shall provide, from non-Federal sources, in 
cash or in-kind, an amount equal to 50 percent of the costs of the 
project supported by such grant.
    ``(e) Distribution of Grants.--In awarding grants under this 
subpart, the Secretary shall ensure that, to the maximum extent 
practicable, the projects funded under this subpart are located in 
diverse geographic regions of the United States.
    ``(f) Eligible Partnerships.--Notwithstanding the general 
eligibility provision in section 361, eligibility to receive grants 
under this subpart is limited to partnerships described in paragraph (5) 
of such section.
``SEC. 356. <<NOTE: 20 USC 1067e-1.>> PROMOTION OF ENTRY INTO STEM 
                        FIELDS.

    ``(a) Authority To Contract, Subject to Appropriations.--The 
Secretary is authorized to enter into a contract with a firm with a 
demonstrated record of success in advertising to implement a campaign to 
expand the population of qualified individuals in science, technology, 
engineering, and mathematics fields (referred to in this section as 
`STEM fields') by encouraging young Americans to enter such fields.
    ``(b) Design of Campaign.--The campaign under this section shall be 
designed to enhance the image of education and professions in the STEM 
fields and promote participation in the STEM fields, and may include--
            ``(1) monitoring trends in youths' attitudes toward pursuing 
        education and professions in the STEM fields and their 
        propensity toward entering the STEM fields;
            ``(2) determining what factors contribute to encouraging and 
        discouraging Americans from pursuing study in STEM fields and 
        entering the STEM fields professionally;
            ``(3) determining what specific factors limit the 
        participation of groups currently underrepresented in STEM 
        fields, including Latinos, African-Americans, and women; and
            ``(4) drawing from the market research performed under this 
        section and implementing an advertising campaign to encourage 
        young Americans to take up studies in STEM fields, beginning at 
        an early age.

    ``(c) Required Components.--The campaign under this section shall--
            ``(1) include components that focus tailored messages on 
        appropriate age groups, starting with elementary school 
        students; and
            ``(2) link participation in the STEM fields to the concept 
        of service to one's country, so that young people will be 
        encouraged to enter the STEM fields in order fulfill the 
        obligation to be of service to their country.

    ``(d) Priority.--The campaign under this section shall hold as a 
high priority making specific appeals to Hispanic Americans, African 
Americans, Native Americans, students with disabilities,

[[Page 122 STAT. 3184]]

and women, who are currently underrepresented in the STEM fields, in 
order to increase their numbers in the STEM fields, and shall tailor 
recruitment efforts to each specific group.
    ``(e) Use of Variety of Media.--The campaign under this section 
shall make use of a variety of media, with an emphasis on television 
advertising, to reach its intended audience.
    ``(f) Teaching.--The campaign under this section shall include a 
narrowly focused effort to attract current professionals in the STEM 
fields, through advertising in mediums likely to reach that specific 
group, into teaching in a STEM field in elementary schools and secondary 
schools.
``SEC. 357. <<NOTE: 20 USC 1067e-2.>> EVALUATION AND 
                        ACCOUNTABILITY PLAN.

    ``The Secretary shall develop an evaluation and accountability plan 
for projects funded under this subpart. Such plan shall include, if the 
Secretary determines that it is practical, an objective measure of the 
impact of such projects, such as a measure of whether underrepresented 
minority student enrollment in courses related to science, technology, 
engineering, and mathematics increases at the secondary and 
postsecondary levels.''.
    (b) Eligibility for Grants.--Section 361 (20 U.S.C. 1067g) is 
amended--
            (1) by striking ``or'' at the end of paragraph (3)(B);
            (2) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``institutions 
                of higher education'' and inserting ``public and private 
                nonprofit institutions of higher education'';
                    (B) in subparagraph (C), by inserting before the 
                semicolon the following: ``, the Department of Defense, 
                or the National Institutes of Health'';
                    (C) by striking subparagraph (D) and inserting the 
                following:
                    ``(D) relevant offices of the National Aeronautics 
                and Space Administration, National Oceanic and 
                Atmospheric Administration, National Science Foundation, 
                and National Institute of Standards and Technology;'';
                    (D) by striking the period at the end of 
                subparagraph (E) and inserting ``; or''; and
                    (E) by adding at the end the following:
                    ``(F) institutions of higher education that have 
                State-sponsored centers for research in science, 
                technology, engineering, and mathematics; or''; and
            (3) by adding at the end the following:
            ``(5) only with respect to grants under subpart 2, 
        partnerships of organizations, the membership of which shall 
        include--
                    ``(A) at least one institution of higher education 
                eligible for assistance under this title or title V;
                    ``(B) at least one high-need local educational 
                agency (as defined in section 200); and
                    ``(C) at least two community organizations or 
                entities, such as businesses, professional associations, 
                community-based organizations, philanthropic 
                organizations, or State agencies.''.

[[Page 122 STAT. 3185]]

SEC. 316. INVESTING IN HISTORICALLY BLACK COLLEGES AND 
                        UNIVERSITIES AND OTHER MINORITY-SERVING 
                        INSTITUTIONS.

    (a) Redesignation and Relocation.--The Act (20 U.S.C. 1001 et seq.) 
is further amended--
            (1) <<NOTE: 20 USC 10663et seq.>> by redesignating part F of 
        title III as part G of title III;
            (2) by redesignating part J of title IV (as added by section 
        802 of the College Cost Reduction and Access Act) <<NOTE: 20 USC 
        1099e.>> as part F of title III, and moving such part so that 
        such part follows part E of title III; and
            (3) by redesignating section 499A (as added by section 802 
        of such Act) <<NOTE: 20 USC 1067q.>> as section 371.

    (b) Conforming Amendments.--Section 371 (as redesignated by 
subsection (a)(3)) is amended--
            (1) in subsection (b)(2)(C)(i), by striking ``title III'' 
        each place the term appears and inserting ``this title''; and
            (2) in subsection (c)(9)(F), by striking ``title III'' and 
        inserting ``this title''.

    (c) Availability of Funds.--Paragraph (1) of section 371(b) (as 
redesignated by subsection (a)(3)) is amended to read as follows:
            ``(1) In general.--
                    ``(A) Provision of funds.--There shall be available 
                to the Secretary to carry out this section, from funds 
                in the Treasury not otherwise appropriated, $255,000,000 
                for each of the fiscal years 2008 and 
                2009. <<NOTE: Expiration date.>> The authority to award 
                grants under this section shall expire at the end of 
                fiscal year 2009.
                    ``(B) Availability.--Funds made available under 
                subparagraph (A) for a fiscal year shall remain 
                available for the next succeeding fiscal year.''.
SEC. 317. TECHNICAL ASSISTANCE.

    Section 391 (20 U.S.C. 1068) is amended by adding at the end the 
following:
    ``(e) Technical Assistance.--The Secretary, directly or by grant or 
contract, may provide technical assistance to eligible institutions to 
prepare the institutions to qualify, apply for, and maintain a grant, 
under this title.''.
SEC. 318. WAIVER AUTHORITY.

    Section 392 (20 U.S.C. 1068a) is amended by adding at the end the 
following:
    ``(c) Waiver Authority With Respect to Institutions Located in an 
Area Affected by a Gulf Hurricane Disaster.--
            ``(1) Waiver authority.--Notwithstanding any other provision 
        of law, unless enacted with specific reference to this section, 
        for any affected institution that was receiving assistance under 
        this title at the time of a Gulf hurricane disaster, the 
        Secretary shall, for each of the fiscal years 2009 through 2011 
        (and may, for each of the fiscal years 2012 and 2013)--
                    ``(A) waive--
                          ``(i) the eligibility data requirements set 
                      forth in section 391(d);
                          ``(ii) the wait-out period set forth in 
                      section 313(d);
                          ``(iii) the allotment requirements under 
                      section 324; and

[[Page 122 STAT. 3186]]

                          ``(iv) the use of the funding formula 
                      developed pursuant to section 326(f)(3);
                    ``(B) waive or modify any statutory or regulatory 
                provision to ensure that affected institutions that were 
                receiving assistance under this title at the time of a 
                Gulf hurricane disaster are not adversely affected by 
                any formula calculation for fiscal year 2009 or for any 
                of the four succeeding fiscal years, as necessary; and
                    ``(C) make available to each affected institution an 
                amount that is not less than the amount made available 
                to such institution under this title for fiscal year 
                2006, except that for any fiscal year for which the 
                funds appropriated for payments under this title are 
                less than the appropriated level for fiscal year 2006, 
                the amount made available to such institutions shall be 
                ratably reduced among the institutions receiving funds 
                under this title.
            ``(2) Definitions.--In this subsection:
                    ``(A) Affected institution.--The term `affected 
                institution' means an institution of higher education 
                that--
                          ``(i) is--
                                    ``(I) a part A institution (which 
                                term shall have the meaning given the 
                                term `eligible institution' under 
                                section 312(b)); or
                                    ``(II) a part B institution, as such 
                                term is defined in section 322(2), or as 
                                identified in section 326(e);
                          ``(ii) is located in an area affected by a 
                      Gulf hurricane disaster; and
                          ``(iii) is able to demonstrate that, as a 
                      result of the impact of a Gulf hurricane disaster, 
                      the institution--
                                    ``(I) incurred physical damage;
                                    ``(II) has pursued collateral source 
                                compensation from insurance, the Federal 
                                Emergency Management Agency, and the 
                                Small Business Administration, as 
                                appropriate; and
                                    ``(III) was not able to fully reopen 
                                in existing facilities or to fully 
                                reopen to the pre-hurricane enrollment 
                                levels during the 30-day period 
                                beginning on August 29, 2005.
                    ``(B) Area affected by a gulf hurricane disaster; 
                gulf hurricane disaster.--The terms `area affected by a 
                Gulf hurricane disaster' and `Gulf hurricane disaster' 
                have the meanings given such terms in section 209 of the 
                Higher Education Hurricane Relief Act of 2005 (Public 
                Law 109-148, 119 Stat. 2809).''.
SEC. 319. AUTHORIZATION OF APPROPRIATIONS.

    Section 399(a) (20 U.S.C. 1068h(a)) is amended to read as follows:
    ``(a) Authorizations.--
            ``(1) Part a.--(A) There are authorized to be appropriated 
        to carry out part A (other than sections 316 through 320), 
        $135,000,000 for fiscal year 2009, and such sums as may be 
        necessary for each of the five succeeding fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 316, $30,000,000 for fiscal year 2009, and such sums

[[Page 122 STAT. 3187]]

        as may be necessary for each of the five succeeding fiscal 
        years.
            ``(C) There are authorized to be appropriated to carry out 
        section 317, $15,000,000 for fiscal year 2009, and such sums as 
        may be necessary for each of the five succeeding fiscal years.
            ``(D) There are authorized to be appropriated to carry out 
        section 318, $75,000,000 for fiscal year 2009 and each of the 
        five succeeding fiscal years.
            ``(E) There are authorized to be appropriated to carry out 
        section 319, $25,000,000 for fiscal year 2009, and such sums as 
        may be necessary for each of the five succeeding fiscal years.
            ``(F) There are authorized to be appropriated to carry out 
        section 320, $30,000,000 for fiscal year 2009, and such sums as 
        may be necessary for each of the five succeeding fiscal years.
            ``(2) Part b.--(A) There are authorized to be appropriated 
        to carry out part B (other than section 326), $375,000,000 for 
        fiscal year 2009, and such sums as may be necessary for each of 
        the five succeeding fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 326, $125,000,000 for fiscal year 2009, and such sums as 
        may be necessary for each of the five succeeding fiscal years.
            ``(3) Part c.--There are authorized to be appropriated to 
        carry out part C, $10,000,000 for fiscal year 2009, and such 
        sums as may be necessary for each of the five succeeding fiscal 
        years.
            ``(4) Part d.--(A) There are authorized to be appropriated 
        to carry out part D (other than section 345(9), but including 
        section 347), $185,000 for fiscal year 2009, and such sums as 
        may be necessary for each of the five succeeding fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 345(9) such sums as may be necessary for fiscal year 
        2009 and each of the five succeeding fiscal years.
            ``(5) Part e.--(A) There are authorized to be appropriated 
        to carry out subpart 1 of part E, $12,000,000 for fiscal year 
        2009, and such sums as may be necessary for each of the five 
        succeeding fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        subpart 2 of part E, such sums as may be necessary for fiscal 
        year 2009 and each of the five succeeding fiscal years.''.
SEC. 320. TECHNICAL CORRECTIONS.

    Title III (20 U.S.C. 1051 et seq.) is further amended--
            (1) in section 342(5) (20 U.S.C. 1066a(5))--
                    (A) in the matter preceding subparagraph (A), by 
                inserting a comma after ``344(b)''; and
                    (B) in subparagraph (C), by striking ``equipment 
                technology,,'' and inserting ``equipment, technology,'';
            (2) in section 343(e) (20 U.S.C. 1066b(e)), by inserting 
        ``Sale of Qualified Bonds.--'' before ``Notwithstanding'';
            (3) in the matter preceding clause (i) of section 365(9)(A) 
        (20 U.S.C. 1067k(9)(A)), by striking ``support'' and inserting 
        ``supports'';

[[Page 122 STAT. 3188]]

            (4) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by 
        striking ``subparagraph (E)'' and inserting ``subparagraph 
        (D)'';
            (5) in the matter preceding subparagraph (A) of section 
        392(b)(2) (20 U.S.C. 1068a(b)(2)), by striking ``eligible 
        institutions under part A institutions'' and inserting 
        ``eligible institutions under part A''; and
            (6) in the matter preceding paragraph (1) of section 396 (20 
        U.S.C. 1068e), by striking ``360'' and inserting ``399''.

                      TITLE IV--STUDENT ASSISTANCE

   PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER 
                                EDUCATION

SEC. 401. FEDERAL PELL GRANTS.

    (a) Authorized Maximums.--
            (1) Amendments.--Section 401(b) (20 U.S.C. 1070a(b)) is 
        amended--
                    (A) by amending paragraph (2)(A) to read as follows:

    ``(2)(A) The amount of the Federal Pell Grant for a student eligible 
under this part shall be--
            ``(i) $6,000 for academic year 2009-2010;
            ``(ii) $6,400 for academic year 2010-2011;
            ``(iii) $6,800 for academic year 2011-2012;
            ``(iv) $7,200 for academic year 2012-2013;
            ``(v) $7,600 for academic year 2013-2014; and
            ``(vi) $8,000 for academic year 2014-2015,

less an amount equal to the amount determined to be the expected family 
contribution with respect to that student for that year.'';
                    (B) by designating the paragraphs following 
                paragraph (2), in the order in which such paragraphs 
                appear, as paragraphs (3) through (8);
                    (C) in paragraph (4) (as designated by subparagraph 
                (B)), by striking ``$400, except'' and all that follows 
                through the period and inserting ``ten percent of the 
                maximum basic grant level specified in the appropriate 
                appropriation Act for such academic year, except that a 
                student who is eligible for a Federal Pell Grant in an 
                amount that is equal to or greater than five percent of 
                such level but less than ten percent of such level shall 
                be awarded a Federal Pell grant in the amount of ten 
                percent of such level.'';
                    (D) by striking paragraph (5) (as designated by 
                subparagraph (B)) and inserting the following:
            ``(5)(A) The Secretary shall award a student not more than 
        two Federal Pell Grants during a single award year to permit 
        such student to accelerate the student's progress toward a 
        degree or certificate if the student is enrolled--
                    ``(i) on at least a half-time basis for a period of 
                more than one academic year, or more than two semesters 
                or an equivalent period of time, during a single award 
                year; and
                    ``(ii) in a program of instruction at an institution 
                of higher education for which the institution awards an 
                associate or baccalaureate degree or a certificate.

[[Page 122 STAT. 3189]]

            ``(B) In the case of a student receiving more than one 
        Federal Pell Grant in a single award year under subparagraph 
        (A), the total amount of Federal Pell Grants awarded to such 
        student for the award year may exceed the maximum basic grant 
        level specified in the appropriate appropriations Act for such 
        award year.'';
                    (E) in paragraph (7) (as designated by subparagraph 
                (B)), by inserting before the period the following: ``or 
                who is subject to an involuntary civil commitment upon 
                completion of a period of incarceration for a forcible 
                or nonforcible sexual offense (as determined in 
                accordance with the Federal Bureau of Investigation's 
                Uniform Crime Reporting Program)''; and
                    (F) in paragraph (8) (as designated by subparagraph 
                (B))--
                          (i) by amending subparagraph (D) to read as 
                      follows:
                    ``(D) Program requirements and operations otherwise 
                unaffected.--Except as provided in subparagraphs (B) and 
                (C), nothing in this paragraph shall be construed to 
                alter the requirements and operations of the Federal 
                Pell Grant Program as authorized under this section, or 
                authorize the imposition of additional requirements or 
                operations for the determination and allocation of 
                Federal Pell Grants under this section.''; and
                          (ii) by amending subparagraph (F) to read as 
                      follows:
                    ``(F) Availability of funds.-- <<NOTE: Time 
                period.>> The amounts made available by subparagraph (A) 
                for any fiscal year shall be available beginning on 
                October 1 of that fiscal year, and shall remain 
                available through September 30 of the succeeding fiscal 
                year.''.
            (2) <<NOTE: 20 USC 1070a note.>>  Effective date.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by paragraph (1) shall take 
                effect on July 1, 2009.
                    (B) Special rule.--The amendments made by 
                subparagraph (F) of paragraph (1) shall take effect on 
                the date of enactment of this Act.

    (b) Maximum Duration of Eligibility.--Section 401(c) (20 U.S.C. 
1070a(c)) is amended by adding at the end the following new paragraph:
    ``(5) <<NOTE: Regulations.>> The period during which a student may 
receive Federal Pell Grants shall not exceed 18 semesters, or the 
equivalent of 18 semesters, as determined by the Secretary by 
regulation. Such regulations shall provide, with respect to a student 
who received a Federal Pell Grant for a term but was enrolled at a 
fraction of full-time, that only that same fraction of such semester or 
equivalent shall count towards such duration 
limits. <<NOTE: Applicability.>> The provisions of this paragraph shall 
apply only to a student who receives a Federal Pell Grant for the first 
time on or after July 1, 2008.''.

    (c) Calculation of Federal Pell Grant Eligibility.--
            (1) Amendment.--Section 401(f) (20 U.S.C. 1070a(f)) is 
        amended by adding at the end the following new paragraph:

    ``(4)(A) Notwithstanding paragraph (1) or any other provision of 
this section, the expected family contribution of each student described 
in subparagraph (B) shall be deemed to be zero for the

[[Page 122 STAT. 3190]]

period during which each such student is eligible to receive a Federal 
Pell Grant under subsection (c).
    ``(B) <<NOTE: Applicability.>> Subparagraph (A) shall apply to any 
student at an institution of higher education--
            ``(i) whose parent or guardian was a member of the Armed 
        Forces of the United States who died as a result of performing 
        military service in Iraq or Afghanistan after September 11, 
        2001; and
            ``(ii) who was less than 24 years of age, or was enrolled as 
        a full-time or part-time student at an institution of higher 
        education, as of the time of the parent or guardian's death.

    ``(C) Notwithstanding any other provision of law, the Secretary of 
Veterans Affairs and the Secretary of Defense, as appropriate, shall 
provide the Secretary of Education with information necessary to 
determine which students meet the requirements of subparagraph (B).''.
            (2) <<NOTE: 20 USC 1070a note.>>  Effective date.--The 
        amendment made by paragraph (1) shall take effect on July 1, 
        2009.
SEC. 402. ACADEMIC COMPETITIVENESS GRANTS.

    (a) Amendments.--
            (1) In general.--Section 401A (as amended by Public Law 110-
        227) (20 U.S.C. 1070a-1) is amended--
                    (A) in subsection (c)(3)--
                          (i) in subparagraph (A), by striking clause 
                      (i) and inserting the following:
                          ``(i)(I) successfully completes, after January 
                      1, 2006, but before July 1, 2009, a rigorous 
                      secondary school program of study established by a 
                      State or local educational agency and recognized 
                      as such by the Secretary; or
                          ``(II) successfully completes, on or after 
                      July 1, 2009, a rigorous secondary school program 
                      of study that prepares students for college--
                                    ``(aa)(AA) that is recognized as 
                                such by the official designated for such 
                                recognition consistent with State law; 
                                and
                                    ``(BB) about which the designated 
                                official has reported to the Secretary, 
                                at such time as the Secretary may 
                                reasonably require, in order to assist 
                                financial aid administrators to 
                                determine that the student is an 
                                eligible student under this section; or
                                    ``(bb) that is recognized as such by 
                                the Secretary in regulations promulgated 
                                to carry out this section, as such 
                                regulations were in effect on May 6, 
                                2008; and''; and
                          (ii) in subparagraph (B), by striking clause 
                      (i) and inserting the following:
                          ``(i)(I) successfully completes, after January 
                      1, 2005, but before July 1, 2009, a rigorous 
                      secondary school program of study established by a 
                      State or local educational agency and recognized 
                      as such by the Secretary; or
                          ``(II) successfully completes, on or after 
                      July 1, 2009, a rigorous secondary school program 
                      of study that prepares students for college--

[[Page 122 STAT. 3191]]

                                    ``(aa)(AA) that is recognized as 
                                such by the official designated for such 
                                recognition consistent with State law; 
                                and
                                    ``(BB) about which the designated 
                                official has reported to the Secretary, 
                                at such time as the Secretary may 
                                reasonably require, in order to assist 
                                financial aid administrators to 
                                determine that the student is an 
                                eligible student under this section; or
                                    ``(bb) <<NOTE: Regulations.>> that 
                                is recognized as such by the Secretary 
                                in regulations promulgated to carry out 
                                this section, as such regulations were 
                                in effect on May 6, 2008; and''; and
                    (B) by amending subsection (e)(2) to read as 
                follows:
            ``(2) Availability of funds.--The amounts made available by 
        paragraph (1) for any fiscal year shall be available from 
        October 1 of that fiscal year and remain available through 
        September 30 of the succeeding fiscal year.''.
            (2) <<NOTE: 20 USC 1070a-1 note.>>  Effective date.--The 
        amendment made by paragraph (1)(B) shall take effect on October 
        1, 2008.
            (3) Effective date amendment.--Section 10(b) of the Ensuring 
        Continued Access to Student Loans Act of 2008 <<NOTE: 20 
        USC 1070a-1 note.>> is amended by striking ``January 1'' and 
        inserting ``July 1''.

    (b) <<NOTE: 20 USC 1089 note.>>  Waiver of Master Calendar and 
Negotiated Rulemaking Requirements.--Sections 482 and 492 of the Higher 
Education Act of 1965 (20 U.S.C. 1089, 1098a) shall not apply to the 
amendments made by subsection (a), or to any regulations promulgated 
under those amendments.

    (c) Related Amendment to the Ensuring Continued Access to Student 
Loans Act of 2008.--
            (1) Amendment.--Section 11 of the Ensuring Continued Access 
        to Student Loans Act of 2008 <<NOTE: 20 USC 1089 note.>> is 
        amended by striking ``sections 2 through 9 of''.
            (2) <<NOTE: 20 USC 1089 note.>>  Effective date.--The 
        amendment made by paragraph (1) shall take effect as if enacted 
        as part of the Ensuring Continued Access to Student Loans Act of 
        2008.
SEC. 403. FEDERAL TRIO PROGRAMS.

    (a) Program Authority; Authorization of Appropriations.--Section 
402A (20 U.S.C. 1070a-11) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                          (i) by inserting ``including community-based 
                      organizations with experience in serving 
                      disadvantaged youth'' after ``private agencies and 
                      organizations''; and
                          (ii) by striking ``in exceptional 
                      circumstances'' and inserting ``, as appropriate 
                      to the purposes of the program'';
                    (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``4'' and inserting ``5''; and
                          (ii) by amending subparagraph (A) to read as 
                      follows:
                    ``(A) in order to synchronize the awarding of grants 
                for programs under this chapter, the Secretary may, 
                under such terms as are consistent with the purposes of 
                this

[[Page 122 STAT. 3192]]

                chapter, provide a one-time, limited extension of the 
                length of such an award;''; and
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) Minimum grants.--Unless the institution or agency 
        requests a smaller amount, an individual grant authorized under 
        this chapter shall be awarded in an amount that is not less than 
        $200,000, except that an individual grant authorized under 
        section 402G shall be awarded in an amount that is not less than 
        $170,000.'';
            (2) in subsection (c)--
                    (A) in paragraph (2)--
                          (i) by striking ``(2) prior experience.--In'' 
                      and inserting the following:
            ``(2) Considerations.--
                    ``(A) Prior experience.--In'';
                          (ii) by striking ``service delivery'' and 
                      inserting ``high quality service delivery, as 
                      determined under subsection (f),''; and
                          (iii) by adding at the end the following new 
                      subparagraph:
                    ``(B) Participant need.--In making grants under this 
                chapter, the Secretary shall consider the number, 
                percentages, and needs of eligible participants in the 
                area, institution of higher education, or secondary 
                school to be served to aid such participants in 
                preparing for, enrolling in, or succeeding in 
                postsecondary education, as appropriate to the 
                particular program for which the eligible entity is 
                applying.'';
                    (B) in paragraph (3)(B), by striking ``is not 
                required to'' and inserting ``shall not'';
                    (C) in paragraph (5), by striking ``campuses'' and 
                inserting ``different campuses'';
                    (D) in paragraph (6), by adding at the end the 
                following new sentence: ``The Secretary shall, as 
                appropriate, require each applicant for funds under the 
                programs authorized by this chapter to identify and make 
                available services under such program, including 
                mentoring, tutoring, and other services provided by such 
                program, to foster care youth (including youth in foster 
                care and youth who have left foster care after reaching 
                age 13) or to homeless children and youths as defined in 
                section 725 of the McKinney-Vento Homeless Assistance 
                Act.''; and
                    (E) by adding at the end the following:
            ``(8) Review and notification by the secretary.--
                    ``(A) Guidance.-- <<NOTE: Deadline.>> Not later than 
                180 days after the date of enactment of the Higher 
                Education Opportunity Act, the Secretary shall issue 
                nonregulatory guidance regarding the rights and 
                responsibilities of applicants with respect to the 
                application and evaluation process for programs and 
                projects assisted under this chapter, including 
                applicant access to peer review comments. The guidance 
                shall describe the procedures for the submission, 
                processing, and scoring of applications for grants under 
                this chapter, including--
                          ``(i) the responsibility of applicants to 
                      submit materials in a timely manner and in 
                      accordance with the

[[Page 122 STAT. 3193]]

                      processes established by the Secretary under the 
                      authority of the General Education Provisions Act;
                          ``(ii) steps the Secretary will take to ensure 
                      that the materials submitted by applicants are 
                      processed in a proper and timely manner;
                          ``(iii) steps the Secretary will take to 
                      ensure that prior experience points for high 
                      quality service delivery are awarded in an 
                      accurate and transparent manner;
                          ``(iv) steps the Secretary will take to ensure 
                      the quality and integrity of the peer review 
                      process, including assurances that peer reviewers 
                      will consider applications for grants under this 
                      chapter in a thorough and complete manner 
                      consistent with applicable Federal law; and
                          ``(v) steps the Secretary will take to ensure 
                      that the final score of an application, including 
                      prior experience points for high quality service 
                      delivery and points awarded through the peer 
                      review process, is determined in an accurate and 
                      transparent manner.
                    ``(B) Updated guidance.-- 
                <<NOTE: Deadline. Publication.>> Not later than 45 days 
                before the date of the commencement of each competition 
                for a grant under this chapter that is held after the 
                expiration of the 180-day period described in 
                subparagraph (A), the Secretary shall update and publish 
                the guidance described in such subparagraph.
                    ``(C) Review.--
                          ``(i) In general.--With respect to any 
                      competition for a grant under this chapter, an 
                      applicant may request a review by the Secretary if 
                      the applicant--
                                    ``(I) has evidence of a specific 
                                technical, administrative, or scoring 
                                error made by the Department, an agent 
                                of the Department, or a peer reviewer, 
                                with respect to the scoring or 
                                processing of a submitted application; 
                                and
                                    ``(II) has otherwise met all of the 
                                requirements for submission of the 
                                application.
                          ``(ii) Technical or administrative error.--In 
                      the case of evidence of a technical or 
                      administrative error listed in clause (i)(I), the 
                      Secretary shall review such evidence and provide a 
                      timely response to the applicant. If the Secretary 
                      determines that a technical or administrative 
                      error was made by the Department or an agent of 
                      the Department, the application of the applicant 
                      shall be reconsidered in the peer review process 
                      for the applicable grant competition.
                          ``(iii) Scoring error.--In the case of 
                      evidence of a scoring error listed in clause 
                      (i)(I), when the error relates to either prior 
                      experience points for high quality service 
                      delivery or to the final score of an application, 
                      the Secretary shall--
                                    ``(I) review such evidence and 
                                provide a timely response to the 
                                applicant; and
                                    ``(II) if the Secretary determines 
                                that a scoring error was made by the 
                                Department or a peer reviewer, adjust 
                                the prior experience points or final 
                                score of the application appropriately 
                                and quickly,

[[Page 122 STAT. 3194]]

                                so as not to interfere with the timely 
                                awarding of grants for the applicable 
                                grant competition.
                          ``(iv) Error in peer review process.--
                                    ``(I) <<NOTE: Panel.>>  Referral to 
                                secondary review.--In the case of a peer 
                                review process error listed in clause 
                                (i)(I), if the Secretary determines that 
                                points were withheld for criteria not 
                                required in Federal statute, regulation, 
                                or guidance governing a program assisted 
                                under this chapter or the application 
                                for a grant for such program, or 
                                determines that information pertaining 
                                to selection criteria was wrongly 
                                determined missing from an application 
                                by a peer reviewer, then the Secretary 
                                shall refer the application to a 
                                secondary review panel.
                                    ``(II) Timely review; replacement 
                                score.--The secondary review panel 
                                described in subclause (I) shall conduct 
                                a secondary review in a timely fashion, 
                                and the score resulting from the 
                                secondary review shall replace the score 
                                from the initial peer review.
                                    ``(III) Composition of secondary 
                                review panel.--The secondary review 
                                panel shall be composed of reviewers 
                                each of whom--
                                            ``(aa) did not review the 
                                        application in the original peer 
                                        review;
                                            ``(bb) is a member of the 
                                        cohort of peer reviewers for the 
                                        grant program that is the 
                                        subject of such secondary 
                                        review; and
                                            ``(cc) to extent 
                                        practicable, has conducted peer 
                                        reviews in not less than two 
                                        previous competitions for the 
                                        grant program that is the 
                                        subject of such secondary 
                                        review.
                                    ``(IV) Final score.--The final peer 
                                review score of an application subject 
                                to a secondary review under this clause 
                                shall be adjusted appropriately and 
                                quickly using the score awarded by the 
                                secondary review panel, so as not to 
                                interfere with the timely awarding of 
                                grants for the applicable grant 
                                competition.
                                    ``(V) Qualification for secondary 
                                review.--To qualify for a secondary 
                                review under this clause, an applicant 
                                shall have evidence of a scoring error 
                                and demonstrate that--
                                            ``(aa) points were withheld 
                                        for criteria not required in 
                                        statute, regulation, or guidance 
                                        governing the Federal TRIO 
                                        programs or the application for 
                                        a grant for such programs; or
                                            ``(bb) information 
                                        pertaining to selection criteria 
                                        was wrongly determined to be 
                                        missing from the application.
                          ``(v) Finality.--
                                    ``(I) In general.--A determination 
                                by the Secretary under clause (i), (ii), 
                                or (iii) shall not be reviewable by any 
                                officer or employee of the Department.
                                    ``(II) Scoring.--The score awarded 
                                by a secondary review panel under clause 
                                (iv) shall not

[[Page 122 STAT. 3195]]

                                be reviewable by any officer or employee 
                                of the Department other than the 
                                Secretary.
                          ``(vi) Funding of applications with certain 
                      adjusted scores.--To the extent feasible based on 
                      the availability of appropriations, the Secretary 
                      shall fund applications with scores that are 
                      adjusted upward under clauses (ii), (iii), and 
                      (iv) to equal or exceed the minimum cut off score 
                      for the applicable grant competition.'';
            (3) in subsection (e)--
                    (A) by striking ``(g)(2)'' each place it appears and 
                inserting ``(h)(4)''; and
                    (B) by adding at the end the following new 
                paragraph:

    ``(3) Notwithstanding this subsection and subsection (h)(4), 
individuals who are foster care youth (including youth in foster care 
and youth who have left foster care after reaching age 13), or homeless 
children and youths as defined in section 725 of the McKinney-Vento 
Homeless Assistance Act, shall be eligible to participate in programs 
under sections 402B, 402C, 402D, and 402F.'';
            (4) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (5) by inserting after subsection (e) the following:

    ``(f) Outcome Criteria.--
            ``(1) Use for prior experience determination.--For 
        competitions for grants under this chapter that begin on or 
        after January 1, 2009, the Secretary shall determine an eligible 
        entity's prior experience of high quality service delivery, as 
        required under subsection (c)(2), based on the outcome criteria 
        described in paragraphs (2) and (3).
            ``(2) Disaggregation of relevant data.--The outcome criteria 
        under this subsection shall be disaggregated by low-income 
        students, first generation college students, and individuals 
        with disabilities, in the schools and institutions of higher 
        education served by the program to be evaluated.
            ``(3) Contents of outcome criteria.--The outcome criteria 
        under this subsection shall measure, annually and for longer 
        periods, the quality and effectiveness of programs authorized 
        under this chapter and shall include the following:
                    ``(A) For programs authorized under section 402B, 
                the extent to which the eligible entity met or exceeded 
                the entity's objectives established in the entity's 
                application for such program regarding--
                          ``(i) the delivery of service to a total 
                      number of students served by the program;
                          ``(ii) the continued secondary school 
                      enrollment of such students;
                          ``(iii) the graduation of such students from 
                      secondary school with a regular secondary school 
                      diploma in the standard number of years;
                          ``(iv) the completion by such students of a 
                      rigorous secondary school program of study that 
                      will make such students eligible for programs such 
                      as the Academic Competitiveness Grants Program;
                          ``(v) the enrollment of such students in an 
                      institution of higher education; and

[[Page 122 STAT. 3196]]

                          ``(vi) to the extent practicable, the 
                      postsecondary education completion of such 
                      students.
                    ``(B) For programs authorized under section 402C, 
                the extent to which the eligible entity met or exceeded 
                the entity's objectives for such program regarding--
                          ``(i) the delivery of service to a total 
                      number of students served by the program, as 
                      agreed upon by the entity and the Secretary for 
                      the period;
                          ``(ii) such students' school performance, as 
                      measured by the grade point average, or its 
                      equivalent;
                          ``(iii) such students' academic performance, 
                      as measured by standardized tests, including tests 
                      required by the students' State;
                          ``(iv) the retention in, and graduation from, 
                      secondary school of such students;
                          ``(v) the completion by such students of a 
                      rigorous secondary school program of study that 
                      will make such students eligible for programs such 
                      as the Academic Competitiveness Grants Program;
                          ``(vi) the enrollment of such students in an 
                      institution of higher education; and
                          ``(vii) to the extent practicable, the 
                      postsecondary education completion of such 
                      students.
                    ``(C) For programs authorized under section 402D--
                          ``(i) the extent to which the eligible entity 
                      met or exceeded the entity's objectives regarding 
                      the retention in postsecondary education of the 
                      students served by the program;
                          ``(ii)(I) in the case of an entity that is an 
                      institution of higher education offering a 
                      baccalaureate degree, the extent to which the 
                      entity met or exceeded the entity's objectives 
                      regarding the percentage of such students' 
                      completion of the degree programs in which such 
                      students were enrolled; or
                          ``(II) in the case of an entity that is an 
                      institution of higher education that does not 
                      offer a baccalaureate degree, the extent to which 
                      such students met or exceeded the entity's 
                      objectives regarding--
                                    ``(aa) the completion of a degree or 
                                certificate by such students; and
                                    ``(bb) the transfer of such students 
                                to institutions of higher education that 
                                offer baccalaureate degrees;
                          ``(iii) the extent to which the entity met or 
                      exceeded the entity's objectives regarding the 
                      delivery of service to a total number of students, 
                      as agreed upon by the entity and the Secretary for 
                      the period; and
                          ``(iv) the extent to which the entity met or 
                      exceeded the entity's objectives regarding the 
                      students served under the program who remain in 
                      good academic standing.
                    ``(D) For programs authorized under section 402E, 
                the extent to which the entity met or exceeded the 
                entity's objectives for such program regarding--
                          ``(i) the delivery of service to a total 
                      number of students served by the program, as 
                      agreed upon by the entity and the Secretary for 
                      the period;

[[Page 122 STAT. 3197]]

                          ``(ii) the provision of appropriate scholarly 
                      and research activities for the students served by 
                      the program;
                          ``(iii) the acceptance and enrollment of such 
                      students in graduate programs; and
                          ``(iv) the continued enrollment of such 
                      students in graduate study and the attainment of 
                      doctoral degrees by former program participants.
                    ``(E) For programs authorized under section 402F, 
                the extent to which the entity met or exceeded the 
                entity's objectives for such program regarding--
                          ``(i) the enrollment of students without a 
                      secondary school diploma or its recognized 
                      equivalent, who were served by the program, in 
                      programs leading to such diploma or equivalent;
                          ``(ii) the enrollment of secondary school 
                      graduates who were served by the program in 
                      programs of postsecondary education;
                          ``(iii) the delivery of service to a total 
                      number of students served by the program, as 
                      agreed upon by the entity and the Secretary for 
                      the period; and
                          ``(iv) the provision of assistance to students 
                      served by the program in completing financial aid 
                      applications and college admission applications.
            ``(4) Measurement of progress.--In order to determine the 
        extent to which each outcome criterion described in paragraph 
        (2) or (3) is met or exceeded, the Secretary shall compare the 
        agreed upon target for the criterion, as established in the 
        eligible entity's application approved by the Secretary, with 
        the results for the criterion, measured as of the last day of 
        the applicable time period for the determination for the outcome 
        criterion.'';
            (6) in subsection (g) (as redesignated by paragraph (4))--
                    (A) in the first sentence, by striking 
                ``$700,000,000 for fiscal year 1999'' and all that 
                follows through the period and inserting ``$900,000,000 
                for fiscal year 2009 and such sums as may be necessary 
                for each of the five succeeding fiscal years.''; and
                    (B) by striking the fourth sentence; and
            (7) in subsection (h) (as redesignated by paragraph (4))--
                    (A) by redesignating paragraphs (1) through (4) as 
                paragraphs (3) through (6), respectively;
                    (B) by inserting before paragraph (3) (as 
                redesignated by subparagraph (A)) the following:
            ``(1) Different campus.--The term `different campus' means a 
        site of an institution of higher education that--
                    ``(A) is geographically apart from the main campus 
                of the institution;
                    ``(B) is permanent in nature; and
                    ``(C) offers courses in educational programs leading 
                to a degree, certificate, or other recognized 
                educational credential.
            ``(2) Different population.--The term `different population' 
        means a group of individuals that an eligible entity desires to 
        serve through an application for a grant under this chapter, and 
        that--

[[Page 122 STAT. 3198]]

                    ``(A) is separate and distinct from any other 
                population that the entity has applied for a grant under 
                this chapter to serve; or
                    ``(B) while sharing some of the same needs as 
                another population that the eligible entity has applied 
                for a grant under this chapter to serve, has distinct 
                needs for specialized services.'';
                    (C) in paragraph (5) (as redesignated by 
                subparagraph (A))--
                          (i) in subparagraph (A)--
                                    (I) by striking ``, any part of 
                                which occurred after January 31, 
                                1955,''; and
                                    (II) by striking ``or'' after the 
                                semicolon;
                          (ii) in subparagraph (B)--
                                    (I) by striking ``after January 31, 
                                1955,''; and
                                    (II) by striking the period at the 
                                end and inserting a semicolon; and
                          (iii) by adding at the end the following:
                    ``(C) was a member of a reserve component of the 
                Armed Forces called to active duty for a period of more 
                than 30 days; or
                    ``(D) was a member of a reserve component of the 
                Armed Forces who served on active duty in support of a 
                contingency operation (as that term is defined in 
                section 101(a)(13) of title 10, United States Code) on 
                or after September 11, 2001.''; and
                    (D) in paragraph (6) (as redesignated by 
                subparagraph (A)), by striking ``subparagraph (A) or (B) 
                of paragraph (3)'' and inserting ``subparagraph (A), 
                (B), or (C) of paragraph (5)''.

    (b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by inserting ``, and 
                facilitate the application for,'' after ``the 
                availability of''; and
                    (B) in paragraph (3), by striking ``, but who have 
                the ability to complete such programs, to reenter'' and 
                inserting ``to enter or reenter, and complete'';
            (2) by redesignating subsection (c) as subsection (d);
            (3) by striking subsection (b) and inserting the following:

    ``(b) Required Services.--Any project assisted under this section 
shall provide--
            ``(1) connections to high quality academic tutoring 
        services, to enable students to complete secondary or 
        postsecondary courses;
            ``(2) advice and assistance in secondary course selection 
        and, if applicable, initial postsecondary course selection;
            ``(3) assistance in preparing for college entrance 
        examinations and completing college admission applications;
            ``(4)(A) information on the full range of Federal student 
        financial aid programs and benefits (including Federal Pell 
        Grant awards and loan forgiveness) and resources for locating 
        public and private scholarships; and
            ``(B) assistance in completing financial aid applications, 
        including the Free Application for Federal Student Aid described 
        in section 483(a);
            ``(5) guidance on and assistance in--

[[Page 122 STAT. 3199]]

                    ``(A) secondary school reentry;
                    ``(B) alternative education programs for secondary 
                school dropouts that lead to the receipt of a regular 
                secondary school diploma;
                    ``(C) entry into general educational development 
                (GED) programs; or
                    ``(D) postsecondary education; and
            ``(6) connections to education or counseling services 
        designed to improve the financial literacy and economic literacy 
        of students or the students' parents, including financial 
        planning for postsecondary education.

    ``(c) Permissible Services.--Any project assisted under this section 
may provide services such as--
            ``(1) academic tutoring, which may include instruction in 
        reading, writing, study skills, mathematics, science, and other 
        subjects;
            ``(2) personal and career counseling or activities;
            ``(3) information and activities designed to acquaint youth 
        with the range of career options available to the youth;
            ``(4) exposure to the campuses of institutions of higher 
        education, as well as cultural events, academic programs, and 
        other sites or activities not usually available to disadvantaged 
        youth;
            ``(5) workshops and counseling for families of students 
        served;
            ``(6) mentoring programs involving elementary or secondary 
        school teachers or counselors, faculty members at institutions 
        of higher education, students, or any combination of such 
        persons; and
            ``(7) programs and activities as described in subsection (b) 
        or paragraphs (1) through (6) of this subsection that are 
        specially designed for students who are limited English 
        proficient, students from groups that are traditionally 
        underrepresented in postsecondary education, students with 
        disabilities, students who are homeless children and youths (as 
        such term is defined in section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a)), students who are in 
        foster care or are aging out of the foster care system, or other 
        disconnected students.''; and
            (4) in the matter preceding paragraph (1) of subsection (d) 
        (as redesignated by paragraph (2)), by striking ``talent search 
        projects under this chapter'' and inserting ``projects under 
        this section''.

    (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
            (1) by striking subsection (b) and inserting the following:

    ``(b) Required Services.--Any project assisted under this section 
shall provide--
            ``(1) academic tutoring to enable students to complete 
        secondary or postsecondary courses, which may include 
        instruction in reading, writing, study skills, mathematics, 
        science, and other subjects;
            ``(2) advice and assistance in secondary and postsecondary 
        course selection;
            ``(3) assistance in preparing for college entrance 
        examinations and completing college admission applications;

[[Page 122 STAT. 3200]]

            ``(4)(A) information on the full range of Federal student 
        financial aid programs and benefits (including Federal Pell 
        Grant awards and loan forgiveness) and resources for locating 
        public and private scholarships; and
            ``(B) assistance in completing financial aid applications, 
        including the Free Application for Federal Student Aid described 
        in section 483(a);
            ``(5) guidance on and assistance in--
                    ``(A) secondary school reentry;
                    ``(B) alternative education programs for secondary 
                school dropouts that lead to the receipt of a regular 
                secondary school diploma;
                    ``(C) entry into general educational development 
                (GED) programs; or
                    ``(D) postsecondary education; and
            ``(6) education or counseling services designed to improve 
        the financial literacy and economic literacy of students or the 
        students' parents, including financial planning for 
        postsecondary education.'';
            (2) in subsection (c)--
                    (A) in the subsection heading, by striking 
                ``Required Services'' and inserting ``Additional 
                Required Services for Multiple-Year Grant Recipients''; 
                and
                    (B) by striking ``upward bound project assisted 
                under this chapter'' and inserting ``project assisted 
                under this section'';
            (3) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively;
            (4) by inserting after subsection (c) the following:

    ``(d) Permissible Services.--Any project assisted under this section 
may provide such services as--
            ``(1) exposure to cultural events, academic programs, and 
        other activities not usually available to disadvantaged youth;
            ``(2) information, activities, and instruction designed to 
        acquaint youth participating in the project with the range of 
        career options available to the youth;
            ``(3) on-campus residential programs;
            ``(4) mentoring programs involving elementary school or 
        secondary school teachers or counselors, faculty members at 
        institutions of higher education, students, or any combination 
        of such persons;
            ``(5) work-study positions where youth participating in the 
        project are exposed to careers requiring a postsecondary degree;
            ``(6) special services, including mathematics and science 
        preparation, to enable veterans to make the transition to 
        postsecondary education; and
            ``(7) programs and activities as described in subsection 
        (b), subsection (c), or paragraphs (1) through (6) of this 
        subsection that are specially designed for students who are 
        limited English proficient, students from groups that are 
        traditionally underrepresented in postsecondary education, 
        students with disabilities, students who are homeless children 
        and youths (as such term is defined in section 725 of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), 
        students who are in foster care or are aging out of the foster 
        care system, or other disconnected students.'';
            (5) in subsection (e) (as redesignated by paragraph (3))--

[[Page 122 STAT. 3201]]

                    (A) in the matter preceding paragraph (1), by 
                striking ``upward bound projects under this chapter'' 
                and inserting ``projects under this section'';
                    (B) in paragraph (2), by striking ``either low-
                income'' and all that follows through the semicolon and 
                inserting ``low-income individuals, first generation 
                college students, or students who have a high risk for 
                academic failure;'';
                    (C) in paragraph (3), by striking ``and'' after the 
                semicolon;
                    (D) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                    (E) by adding at the end the following:
            ``(5) require an assurance that no student will be denied 
        participation in a project assisted under this section because 
        the student will enter the project after the 9th grade.'';
            (6) in subsection (f) (as redesignated by paragraph (3))--
                    (A) by striking ``during June, July, and August'' 
                each place the term occurs and inserting ``during the 
                summer school recess, for a period not to exceed three 
                months''; and
                    (B) by striking ``(b)(10)'' and inserting 
                ``(d)(5)''; and
            (7) by adding at the end the following:

    ``(h) Absolute Priority Prohibited in Upward Bound Program.--Upon 
enactment of this subsection and except as otherwise expressly provided 
by amendment to this section, the Secretary shall not continue, 
implement, or enforce the absolute priority for the Upward Bound Program 
published by the Department of Education in the Federal Register on 
September 22, 2006 (71 Fed. Reg. 55447 et seq.). This subsection shall 
not be applied retroactively. In implementing this subsection, the 
Department shall allow the programs and participants chosen in the grant 
cycle to which the priority applies to continue their grants and 
participation without a further recompetition. The entities shall not be 
required to apply the absolute priority conditions or restrictions to 
future participants.''.
    (d) Student Support Services.--Section 402D (20 U.S.C. 1070a-14) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``and'' after the 
                semicolon; and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) to foster an institutional climate supportive of the 
        success of students who are limited English proficient, students 
        from groups that are traditionally underrepresented in 
        postsecondary education, students with disabilities, students 
        who are homeless children and youths (as such term is defined in 
        section 725 of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11434a)), students who are in foster care or are aging 
        out of the foster care system, or other disconnected students; 
        and
            ``(4) to improve the financial literacy and economic 
        literacy of students, including--
                    ``(A) basic personal income, household money 
                management, and financial planning skills; and
                    ``(B) basic economic decisionmaking skills.'';
            (2) by redesignating subsections (c) and (d) as subsections 
        (d) and (e);

[[Page 122 STAT. 3202]]

            (3) by striking subsection (b) and inserting the following:

    ``(b) Required Services.--A project assisted under this section 
shall provide--
            ``(1) academic tutoring, directly or through other services 
        provided by the institution, to enable students to complete 
        postsecondary courses, which may include instruction in reading, 
        writing, study skills, mathematics, science, and other subjects;
            ``(2) advice and assistance in postsecondary course 
        selection;
            ``(3)(A) information on both the full range of Federal 
        student financial aid programs and benefits (including Federal 
        Pell Grant awards and loan forgiveness) and resources for 
        locating public and private scholarships; and
            ``(B) assistance in completing financial aid applications, 
        including the Free Application for Federal Student Aid described 
        in section 483(a);
            ``(4) education or counseling services designed to improve 
        the financial literacy and economic literacy of students, 
        including financial planning for postsecondary education;
            ``(5) activities designed to assist students participating 
        in the project in applying for admission to, and obtaining 
        financial assistance for enrollment in, graduate and 
        professional programs; and
            ``(6) activities designed to assist students enrolled in 
        two-year institutions of higher education in applying for 
        admission to, and obtaining financial assistance for enrollment 
        in, a four-year program of postsecondary education.

    ``(c) Permissible Services.--A project assisted under this section 
may provide services such as--
            ``(1) individualized counseling for personal, career, and 
        academic matters provided by assigned counselors;
            ``(2) information, activities, and instruction designed to 
        acquaint students participating in the project with the range of 
        career options available to the students;
            ``(3) exposure to cultural events and academic programs not 
        usually available to disadvantaged students;
            ``(4) mentoring programs involving faculty or upper class 
        students, or a combination thereof;
            ``(5) securing temporary housing during breaks in the 
        academic year for--
                    ``(A) students who are homeless children and youths 
                (as such term is defined in section 725 of the McKinney-
                Vento Homeless Assistance Act (42 U.S.C. 11434a)) or 
                were formerly homeless children and youths; and
                    ``(B) students who are in foster care or are aging 
                out of the foster care system; and
            ``(6) programs and activities as described in subsection (b) 
        or paragraphs (1) through (4) of this subsection that are 
        specially designed for students who are limited English 
        proficient, students from groups that are traditionally 
        underrepresented in postsecondary education, students with 
        disabilities, students who are homeless children and youths (as 
        such term is defined in section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a)), students who are in 
        foster care or are aging out of the foster care system, or other 
        disconnected students.'';

[[Page 122 STAT. 3203]]

            (4) in subsection (d)(1) (as redesignated by paragraph (2)), 
        by striking ``subsection (b)'' and inserting ``subsection (c)''; 
        and
            (5) in the matter preceding paragraph (1) of subsection (e) 
        (as redesignated by paragraph (2)), by striking ``student 
        support services projects under this chapter'' and inserting 
        ``projects under this section''.

    (e) Postbaccalaureate Achievement Program Authority.--Section 402E 
(20 U.S.C. 1070a-15) is amended--
            (1) in subsection (b)--
                    (A) in the subsection heading, by inserting 
                ``Required'' before ``Services'';
                    (B) in the matter preceding paragraph (1), by 
                striking ``A postbaccalaureate achievement project 
                assisted under this section may provide services such 
                as--'' and inserting ``A project assisted under this 
                section shall provide--'';
                    (C) in paragraph (5), by inserting ``and'' after the 
                semicolon;
                    (D) in paragraph (6), by striking the semicolon and 
                inserting a period; and
                    (E) by striking paragraphs (7) and (8);
            (2) by redesignating subsections (c) through (f) as 
        subsections (d) through (g), respectively;
            (3) by inserting after subsection (b) the following:

    ``(c) Permissible Services.--A project assisted under this section 
may provide services such as--
            ``(1) education or counseling services designed to improve 
        the financial literacy and economic literacy of students, 
        including financial planning for postsecondary education;
            ``(2) mentoring programs involving faculty members at 
        institutions of higher education, students, or any combination 
        of such persons; and
            ``(3) exposure to cultural events and academic programs not 
        usually available to disadvantaged students.'';
            (4) in subsection (d) (as redesignated by paragraph (2))--
                    (A) in the matter preceding paragraph (1), by 
                striking ``postbaccalaureate achievement''; and
                    (B) in paragraph (2), by inserting after ``graduate 
                education'' the following: ``, including--
                    ``(A) Alaska Natives, as defined in section 7306 of 
                the Elementary and Secondary Education Act of 1965;
                    ``(B) Native Hawaiians, as defined in section 7207 
                of such Act; and
                    ``(C) Native American Pacific Islanders, as defined 
                in section 320.'';
            (5) in the matter preceding paragraph (1) of subsection (f) 
        (as redesignated by paragraph (2)), by striking 
        ``postbaccalaureate achievement project'' and inserting 
        ``project under this section''; and
            (6) in subsection (g) (as redesignated by paragraph (2))--
                    (A) by striking ``402A(f)'' and inserting 
                ``402A(g)''; and
                    (B) by striking ``1993 through 1997'' and inserting 
                ``2009 through 2014''.

    (f) Educational Opportunity Centers.--Section 402F (20 U.S.C. 1070a-
16) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``and'' after the 
                semicolon;

[[Page 122 STAT. 3204]]

                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) to improve the financial literacy and economic 
        literacy of students, including--
                    ``(A) basic personal income, household money 
                management, and financial planning skills; and
                    ``(B) basic economic decisionmaking skills.''; and
            (2) in subsection (b)--
                    (A) by redesignating paragraphs (5) through (10) as 
                paragraphs (6) through (11), respectively;
                    (B) by inserting after paragraph (4) the following:
            ``(5) education or counseling services designed to improve 
        the financial literacy and economic literacy of students;'';
                    (C) by striking paragraph (7) (as redesignated by 
                subparagraph (A)) and inserting the following:
            ``(7) individualized personal, career, and academic 
        counseling;''; and
                    (D) by striking paragraph (11) (as redesignated by 
                subparagraph (A)) and inserting the following:
            ``(11) programs and activities as described in paragraphs 
        (1) through (10) that are specially designed for students who 
        are limited English proficient, students from groups that are 
        traditionally underrepresented in postsecondary education, 
        students with disabilities, students who are homeless children 
        and youths (as such term is defined in section 725 of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), 
        students who are in foster care or are aging out of the foster 
        care system, or other disconnected students.''.

    (g) Staff Development Activities.--Section 402G(b) (20 U.S.C. 1070a-
17(b)) is amended by adding at the end the following new paragraph:
            ``(5) Strategies for recruiting and serving hard to reach 
        populations, including students who are limited English 
        proficient, students from groups that are traditionally 
        underrepresented in postsecondary education, students with 
        disabilities, students who are homeless children and youths (as 
        such term is defined in section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a)), students who are in 
        foster care or are aging out of the foster care system, or other 
        disconnected students.''.

    (h) Reports, Evaluations, and Grants for Project Improvement and 
Dissemination.--Section 402H (20 U.S.C. 1070a-18) is amended--
            (1) by striking the section heading and inserting ``reports, 
        evaluations, and grants for project improvement and 
        dissemination.'';
            (2) by redesignating subsections (a) through (c) as 
        subsections (b) through (d), respectively;
            (3) by inserting before subsection (b) (as redesignated by 
        paragraph (2)) the following:

    ``(a) Reports to the Authorizing Committees.--
            ``(1) In general.--The Secretary shall submit annually, to 
        the authorizing committees, a report that documents the 
        performance of all programs funded under this chapter. Such 
        report shall--

[[Page 122 STAT. 3205]]

                    ``(A) be submitted not later than 12 months after 
                the eligible entities receiving funds under this chapter 
                are required to report their performance to the 
                Secretary;
                    ``(B) focus on the programs' performance on the 
                relevant outcome criteria determined under section 
                402A(f)(4);
                    ``(C) aggregate individual project performance data 
                on the outcome criteria in order to provide national 
                performance data for each program;
                    ``(D) include, when appropriate, descriptive data, 
                multi-year data, and multi-cohort data; and
                    ``(E) include comparable data on the performance 
                nationally of low-income students, first-generation 
                students, and students with disabilities.
            ``(2) Information.--The Secretary shall provide, with each 
        report submitted under paragraph (1), information on the impact 
        of the secondary review process described in section 
        402A(c)(8)(C)(iv), including the number and type of secondary 
        reviews, the disposition of the secondary reviews, the effect on 
        timing of awards, and any other information the Secretary 
        determines is necessary.''; and
            (4) in subsection (b) (as redesignated by paragraph (2)), by 
        striking paragraphs (1) and (2) and inserting the following:
            ``(1) In general.--
                    ``(A) Authorization of grants and contracts.--For 
                the purpose of improving the effectiveness of the 
                programs and projects assisted under this chapter, the 
                Secretary shall make grants to, or enter into contracts 
                with, institutions of higher education and other public 
                and private institutions and organizations to rigorously 
                evaluate the effectiveness of the programs and projects 
                assisted under this chapter, including a rigorous 
                evaluation of the programs and projects assisted under 
                section 402C. <<NOTE: Deadline.>> The evaluation of the 
                programs and projects assisted under section 402C shall 
                be implemented not later than June 30, 2010.
                    ``(B) Content of upward bound evaluation.--The 
                evaluation of the programs and projects assisted under 
                section 402C that is described in subparagraph (A) shall 
                examine the characteristics of the students who benefit 
                most from the Upward Bound program under section 402C 
                and the characteristics of the programs and projects 
                that most benefit students.
                    ``(C) Implementation.--Each evaluation described in 
                this paragraph shall be implemented in accordance with 
                the requirements of this section.
            ``(2) Practices.--
                    ``(A) In general.--The evaluations described in 
                paragraph (1) shall identify institutional, community, 
                and program or project practices that are effective in--
                          ``(i) enhancing the access of low-income 
                      individuals and first-generation college students 
                      to postsecondary education;
                          ``(ii) the preparation of such individuals and 
                      students for postsecondary education; and
                          ``(iii) fostering the success of the 
                      individuals and students in postsecondary 
                      education.

[[Page 122 STAT. 3206]]

                    ``(B) Primary purpose.--Any evaluation conducted 
                under this chapter shall have as the evaluation's 
                primary purpose the identification of particular 
                practices that further the achievement of the outcome 
                criteria determined under section 402A(f)(4).
                    ``(C) Dissemination and use of evaluation 
                findings.--The Secretary shall disseminate to eligible 
                entities and make available to the public the practices 
                identified under subparagraph (B). The practices may be 
                used by eligible entities that receive assistance under 
                this chapter after the dissemination.
            ``(3) Special rule related to evaluation participation.--The 
        Secretary shall not require an eligible entity, as a condition 
        for receiving, or that receives, assistance under any program or 
        project under this chapter to participate in an evaluation under 
        this section that--
                    ``(A) requires the eligible entity to recruit 
                additional students beyond those the program or project 
                would normally recruit; or
                    ``(B) results in the denial of services for an 
                eligible student under the program or project.
            ``(4) Consideration.--When designing an evaluation under 
        this subsection, the Secretary shall continue to consider--
                    ``(A) the burden placed on the program participants 
                or the eligible entity; and
                    ``(B) whether the evaluation meets generally 
                accepted standards of institutional review boards.''.
SEC. 404. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE 
                        PROGRAMS.

    (a) Early Intervention and College Awareness Program Authorized.--
Section 404A (20 U.S.C. 1070a-21) is amended--
            (1) by striking subsection (a) and inserting the following:

    ``(a) Program Authorized.--The Secretary is authorized, in 
accordance with the requirements of this chapter, to establish a program 
that encourages eligible entities to provide support, and maintain a 
commitment, to eligible low-income students, including students with 
disabilities, to assist the students in obtaining a secondary school 
diploma (or its recognized equivalent) and to prepare for and succeed in 
postsecondary education, by providing--
            ``(1) financial assistance, academic support, additional 
        counseling, mentoring, outreach, and supportive services to 
        secondary school students, including students with disabilities, 
        to reduce--
                    ``(A) the risk of such students dropping out of 
                school; or
                    ``(B) the need for remedial education for such 
                students at the postsecondary level; and
            ``(2) information to students and their families about the 
        advantages of obtaining a postsecondary education and, college 
        financing options for the students and their families.'';
            (2) in subsection (b), by striking paragraph (2) and 
        inserting the following:
            ``(2) Award period.--The Secretary may award a grant under 
        this chapter to an eligible entity described in paragraphs (1) 
        and (2) of subsection (c) for--
                    ``(A) six years; or

[[Page 122 STAT. 3207]]

                    ``(B) in the case of an eligible entity that applies 
                for a grant under this chapter for seven years to enable 
                the eligible entity to provide services to a student 
                through the student's first year of attendance at an 
                institution of higher education, seven years.
            ``(3) Priority.--In making awards to eligible entities 
        described in subsection (c)(1), the Secretary shall--
                    ``(A) give priority to eligible entities that--
                          ``(i) on the day before the date of enactment 
                      of the Higher Education Opportunity Act, carried 
                      out successful educational opportunity programs 
                      under this chapter (as this chapter was in effect 
                      on such day); and
                          ``(ii) have a prior, demonstrated commitment 
                      to early intervention leading to college access 
                      through collaboration and replication of 
                      successful strategies; and
                    ``(B) ensure that students served under this chapter 
                on the day before the date of enactment of the Higher 
                Education Opportunity Act continue to receive assistance 
                through the completion of secondary school.''; and
            (3) in subsection (c), by striking paragraph (2) and 
        inserting the following:
            ``(2) a partnership--
                    ``(A) consisting of--
                          ``(i) one or more local educational agencies; 
                      and
                          ``(ii) one or more degree granting 
                      institutions of higher education; and
                    ``(B) which may include not less than two other 
                community organizations or entities, such as businesses, 
                professional organizations, State agencies, institutions 
                or agencies sponsoring programs authorized under subpart 
                4, or other public or private agencies or 
                organizations.''.

    (b) Requirements.--Section 404B (20 U.S.C. 1070a-22) is amended--
            (1) by striking subsection (a) and inserting the following:

    ``(a) Funding Rules.--In awarding grants from the amount 
appropriated under section 404H for a fiscal year, the Secretary shall 
make available--
            ``(1) to eligible entities described in section 404A(c)(1), 
        not less than 33 percent of such amount;
            ``(2) to eligible entities described in section 404A(c)(2), 
        not less than 33 percent of such amount; and
            ``(3) to eligible entities described in paragraph (1) or (2) 
        of section 404A(c), the remainder of such amount taking into 
        consideration the number, quality, and promise of the 
        applications for the grants, and, to the extent practicable--
                    ``(A) the geographic distribution of such grant 
                awards; and
                    ``(B) the distribution of such grant awards between 
                urban and rural applicants.'';
            (2) by striking subsections (b), (e), and (f);
            (3) by redesignating subsections (c), (d), and (g), as 
        subsections (b), (c), and (d), respectively;
            (4) in subsection (d)(1) (as redesignated by paragraph 
        (3))--
                    (A) by striking ``and'' at the end of subparagraph 
                (A);
                    (B) in subparagraph (B)--

[[Page 122 STAT. 3208]]

                          (i) by inserting ``and provide the option of 
                      continued services through the student's first 
                      year of attendance at an institution of higher 
                      education to the extent the provision of such 
                      services was described in the eligible entity's 
                      application for assistance under this chapter'' 
                      after ``grade level''; and
                          (ii) by striking the period at the end and 
                      inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) provide services under this chapter to 
                students who have received services under a previous 
                GEAR UP grant award but have not yet completed the 12th 
                grade.''; and
            (5) by adding at the end the following:

    ``(e) Supplement, Not Supplant.--Grant funds awarded under this 
chapter shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
activities assisted under this chapter.''.
    (c) Application.--Section 404C (20 U.S.C. 1070a-23) is amended--
            (1) in the section heading, by striking ``eligible entity 
        plans'' and inserting ``applications'';
            (2) in subsection (a)--
                    (A) in the subsection heading, by striking ``Plan'' 
                and inserting ``Application'';
                    (B) in paragraph (1)--
                          (i) by striking ``a plan'' and inserting ``an 
                      application''; and
                          (ii) by striking the second sentence; and
                    (C) by striking paragraph (2) and inserting the 
                following:
            ``(2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall be in such form, contain or be accompanied 
        by such information or assurances, and be submitted at such time 
        as the Secretary may reasonably require. Each such application 
        shall, at a minimum--
                    ``(A) describe the activities for which assistance 
                under this chapter is sought, including how the eligible 
                entity will carry out the required activities described 
                in section 404D(a);
                    ``(B) describe, in the case of an eligible entity 
                described in section 404A(c)(2) that chooses to provide 
                scholarships, or an eligible entity described in section 
                404A(c)(1), how the eligible entity will meet the 
                requirements of section 404E;
                    ``(C) describe, in the case of an eligible entity 
                described in section 404A(c)(2) that requests a reduced 
                match percentage under subsection (b)(2), how such 
                reduction will assist the entity to provide the 
                scholarships described in subsection (b)(2)(A)(ii);
                    ``(D) provide assurances that adequate 
                administrative and support staff will be responsible for 
                coordinating the activities described in section 404D;
                    ``(E) provide assurances that activities assisted 
                under this chapter will not displace an employee or 
                eliminate a position at a school assisted under this 
                chapter, including

[[Page 122 STAT. 3209]]

                a partial displacement such as a reduction in hours, 
                wages, or employment benefits;
                    ``(F) describe, in the case of an eligible entity 
                described in section 404A(c)(1) that chooses to use a 
                cohort approach, or an eligible entity described in 
                section 404A(c)(2), how the eligible entity will define 
                the cohorts of the students served by the eligible 
                entity pursuant to section 404B(d), and how the eligible 
                entity will serve the cohorts through grade 12, 
                including--
                          ``(i) how vacancies in the program under this 
                      chapter will be filled; and
                          ``(ii) how the eligible entity will serve 
                      students attending different secondary schools;
                    ``(G) describe how the eligible entity will 
                coordinate programs under this chapter with other 
                existing Federal, State, or local programs to avoid 
                duplication and maximize the number of students served;
                    ``(H) provide such additional assurances as the 
                Secretary determines necessary to ensure compliance with 
                the requirements of this chapter;
                    ``(I) provide information about the activities that 
                will be carried out by the eligible entity to support 
                systemic changes from which future cohorts of students 
                will benefit; and
                    ``(J) describe the sources of matching funds that 
                will enable the eligible entity to meet the matching 
                requirement described in subsection (b).'';
            (3) in subsection (b)--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (1)--
                          (i) by striking ``a plan'' and inserting ``an 
                      application''; and
                          (ii) by striking ``such plan'' and inserting 
                      ``such application'';
                    (B) in paragraph (1)(A), by inserting ``and may be 
                accrued over the full duration of the grant award 
                period, except that the eligible entity shall make 
                substantial progress towards meeting the matching 
                requirement in each year of the grant award period'' 
                after ``in cash or in-kind''; and
                    (C) in paragraph (2), by adding at the end the 
                following new sentence: ``The Secretary may approve an 
                eligible entity's request for a reduced match 
                percentage--
                    ``(A) at the time of application--
                          ``(i) if the eligible entity demonstrates 
                      significant economic hardship that precludes the 
                      eligible entity from meeting the matching 
                      requirement; or
                          ``(ii) if the eligible entity is described in 
                      section 404A(c)(2) and requests that contributions 
                      to the eligible entity's scholarship fund 
                      established under section 404E be matched on a two 
                      to one basis; or
                    ``(B) in response to a petition by an eligible 
                entity subsequent to a grant award under this section if 
                the eligible entity demonstrates that the matching funds 
                described in its application are no longer available and 
                the eligible entity has exhausted all revenues for 
                replacing such matching funds.''; and

[[Page 122 STAT. 3210]]

            (4) in subsection (c)--
                    (A) in paragraph (1)--
                          (i) by striking ``paid to students from State, 
                      local, institutional, or private funds under this 
                      chapter'' and inserting ``obligated to students 
                      from State, local, institutional, or private funds 
                      under this chapter, including pre-existing non-
                      Federal financial assistance programs,''; and
                          (ii) by striking the semicolon at the end and 
                      inserting ``including--
                    ``(A) the amount contributed to a student 
                scholarship fund established under section 404E; and
                    ``(B) the amount of the costs of administering the 
                scholarship program under section 404E;'';
                    (B) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (C) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(4) other resources recognized by the Secretary, including 
        equipment and supplies, cash contributions from non-Federal 
        sources, transportation expenses, in-kind or discounted program 
        services, indirect costs, and facility usage.''.

    (d) Activities.--Section 404D (20 U.S.C. 1070a-24) is amended to 
read as follows:
``SEC. 404D. ACTIVITIES.

    ``(a) Required Activities.--Each eligible entity receiving a grant 
under this chapter shall provide comprehensive mentoring, outreach, and 
supportive services to students participating in the programs under this 
chapter. Such activities shall include the following:
            ``(1) Providing information regarding financial aid for 
        postsecondary education to participating students in the cohort 
        described in section 404B(d)(1)(A) or to priority students 
        described in subsection (d).
            ``(2) Encouraging student enrollment in rigorous and 
        challenging curricula and coursework, in order to reduce the 
        need for remedial coursework at the postsecondary level.
            ``(3) Improving the number of participating students who--
                    ``(A) obtain a secondary school diploma; and
                    ``(B) complete applications for and enroll in a 
                program of postsecondary education.
            ``(4) In the case of an eligible entity described in section 
        404A(c)(1), providing for the scholarships described in section 
        404E.

    ``(b) Permissible Activities for States and Partnerships.--An 
eligible entity that receives a grant under this chapter may use grant 
funds to carry out one or more of the following activities:
            ``(1) Providing tutors and mentors, who may include adults 
        or former participants of a program under this chapter, for 
        eligible students.
            ``(2) Conducting outreach activities to recruit priority 
        students described in subsection (d) to participate in program 
        activities.
            ``(3) Providing supportive services to eligible students.

[[Page 122 STAT. 3211]]

            ``(4) Supporting the development or implementation of 
        rigorous academic curricula, which may include college 
        preparatory, Advanced Placement, or International Baccalaureate 
        programs, and providing participating students access to 
        rigorous core academic courses that reflect challenging State 
        academic standards.
            ``(5) Supporting dual or concurrent enrollment programs 
        between the secondary school and institution of higher education 
        partners of an eligible entity described in section 404A(c)(2), 
        and other activities that support participating students in--
                    ``(A) meeting challenging State academic standards;
                    ``(B) successfully applying for postsecondary 
                education;
                    ``(C) successfully applying for student financial 
                aid; and
                    ``(D) developing graduation and career plans.
            ``(6) Providing special programs or tutoring in science, 
        technology, engineering, or mathematics.
            ``(7) In the case of an eligible entity described in section 
        404A(c)(2), providing support for scholarships described in 
        section 404E.
            ``(8) Introducing eligible students to institutions of 
        higher education, through trips and school-based sessions.
            ``(9) Providing an intensive extended school day, school 
        year, or summer program that offers--
                    ``(A) additional academic classes; or
                    ``(B) assistance with college admission 
                applications.
            ``(10) Providing other activities designed to ensure 
        secondary school completion and postsecondary education 
        enrollment of at-risk children, such as--
                    ``(A) the identification of at-risk children;
                    ``(B) after-school and summer tutoring;
                    ``(C) assistance to at-risk children in obtaining 
                summer jobs;
                    ``(D) academic counseling;
                    ``(E) financial literacy and economic literacy 
                education or counseling;
                    ``(F) volunteer and parent involvement;
                    ``(G) encouraging former or current participants of 
                a program under this chapter to serve as peer 
                counselors;
                    ``(H) skills assessments;
                    ``(I) personal and family counseling, and home 
                visits;
                    ``(J) staff development; and
                    ``(K) programs and activities described in this 
                subsection that are specially designed for students who 
                are limited English proficient.
            ``(11) Enabling eligible students to enroll in Advanced 
        Placement or International Baccalaureate courses, or college 
        entrance examination preparation courses.
            ``(12) Providing services to eligible students in the 
        participating cohort described in section 404B(d)(1)(A), through 
        the first year of attendance at an institution of higher 
        education.
            ``(13) Fostering and improving parent and family involvement 
        in elementary and secondary education by promoting the 
        advantages of a college education, and emphasizing academic 
        admission requirements and the need to take college

[[Page 122 STAT. 3212]]

        preparation courses, through parent engagement and leadership 
        activities.
            ``(14) Disseminating information that promotes the 
        importance of higher education, explains college preparation and 
        admission requirements, and raises awareness of the resources 
        and services provided by the eligible entities to eligible 
        students, their families, and communities.
            ``(15) In the event that matching funds described in the 
        application are no longer available, engaging entities described 
        in section 404A(c)(2) in a collaborative manner to provide 
        matching resources and participate in other activities 
        authorized under this section.

    ``(c) Additional Permissible Activities for States.--In addition to 
the required activities described in subsection (a) and the permissible 
activities described in subsection (b), an eligible entity described in 
section 404A(c)(1) receiving funds under this chapter may use grant 
funds to carry out one or more of the following activities:
            ``(1) Providing technical assistance to--
                    ``(A) secondary schools that are located within the 
                State; or
                    ``(B) partnerships described in section 404A(c)(2) 
                that are located within the State.
            ``(2) Providing professional development opportunities to 
        individuals working with eligible cohorts of students described 
        in section 404B(d)(1)(A).
            ``(3) Providing administrative support to help build the 
        capacity of eligible entities described in section 404A(c)(2) to 
        compete for and manage grants awarded under this chapter.
            ``(4) Providing strategies and activities that align efforts 
        in the State to prepare eligible students to attend and succeed 
        in postsecondary education, which may include the development of 
        graduation and career plans.
            ``(5) Disseminating information on the use of scientifically 
        valid research and best practices to improve services for 
        eligible students.
            ``(6)(A) Disseminating information on effective coursework 
        and support services that assist students in obtaining the goals 
        described in subparagraph (B)(ii).
            ``(B) Identifying and disseminating information on best 
        practices with respect to--
                    ``(i) increasing parental involvement; and
                    ``(ii) preparing students, including students with 
                disabilities and students who are limited English 
                proficient, to succeed academically in, and prepare 
                financially for, postsecondary education.
            ``(7) Working to align State academic standards and 
        curricula with the expectations of postsecondary institutions 
        and employers.
            ``(8) Developing alternatives to traditional secondary 
        school that give students a head start on attaining a recognized 
        postsecondary credential (including an industry-recognized 
        certificate, an apprenticeship, or an associate's or a 
        bachelor's degree), including school designs that give students 
        early exposure to college-level courses and experiences and 
        allow students to earn transferable college credits or an 
        associate's degree at the same time as a secondary school 
        diploma.

[[Page 122 STAT. 3213]]

            ``(9) Creating community college programs for drop-outs that 
        are personalized drop-out recovery programs that allow drop-outs 
        to complete a regular secondary school diploma and begin 
        college-level work.

    ``(d) Priority Students.--For eligible entities not using a cohort 
approach, the eligible entity shall treat as a priority student any 
student in secondary school who is--
            ``(1) eligible to be counted under section 1124(c) of the 
        Elementary and Secondary Education Act of 1965;
            ``(2) eligible for assistance under a State program funded 
        under part A or E of title IV of the Social Security Act (42 
        U.S.C. 601 et seq., 670 et seq.);
            ``(3) eligible for assistance under subtitle B of title VII 
        of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 
        et seq.); or
            ``(4) otherwise considered by the eligible entity to be a 
        disconnected student.

    ``(e) Allowable Providers.--In the case of eligible entities 
described in section 404A(c)(1), the activities required by this section 
may be provided by service providers such as community-based 
organizations, schools, institutions of higher education, public and 
private agencies, nonprofit and philanthropic organizations, businesses, 
institutions and agencies sponsoring programs authorized under subpart 
4, and other organizations the State determines appropriate.''.
    (e) Scholarship Component.--Section 404E (20 U.S.C. 1070a-25) is 
amended--
            (1) by striking subsections (e) and (f);
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (d), (f), and (g), respectively;
            (3) by inserting after subsection (a) the following:

    ``(b) Limitation.--
            ``(1) In general.--Subject to paragraph (2), each eligible 
        entity described in section 404A(c)(1) that receives a grant 
        under this chapter shall use not less than 25 percent and not 
        more than 50 percent of the grant funds for activities described 
        in section 404D (except for the activity described in subsection 
        (a)(4) of such section), with the remainder of such funds to be 
        used for a scholarship program under this section in accordance 
        with such subsection.
            ``(2) Exception.--Notwithstanding paragraph (1), the 
        Secretary may allow an eligible entity to use more than 50 
        percent of grant funds received under this chapter for such 
        activities, if the eligible entity demonstrates that the 
        eligible entity has another means of providing the students with 
        the financial assistance described in this section and describes 
        such means in the application submitted under section 404C.

    ``(c) Notification of Eligibility.--Each eligible entity providing 
scholarships under this section shall provide information on the 
eligibility requirements for the scholarships to all participating 
students upon the students' entry into the programs assisted under this 
chapter.'';
            (4) in subsection (d) (as redesignated by paragraph (2)), by 
        striking ``the lesser of'' and all that follows through the 
        period at the end of paragraph (2) of such subsection (d) and 
        inserting ``the minimum Federal Pell Grant award under section 
        401 for such award year.'';

[[Page 122 STAT. 3214]]

            (5) by inserting after subsection (d) (as redesignated by 
        paragraph (2) and amended by paragraph (4)) the following:

    ``(e) Portability of Assistance.--
            ``(1) In general.--Each eligible entity described in section 
        404A(c)(1) that receives a grant under this chapter shall hold 
        in reserve, for the students served by such grant as described 
        in section 404B(d)(1)(A) or 404D(d), an amount that is not less 
        than the minimum scholarship amount described in subsection (d), 
        multiplied by the number of students the eligible entity 
        estimates will meet the requirements of paragraph (2).
            ``(2) Requirement for portability.--Funds held in reserve 
        under paragraph (1) shall be made available to an eligible 
        student when the eligible student has--
                    ``(A) completed a secondary school diploma, its 
                recognized equivalent, or another recognized alternative 
                standard for individuals with disabilities; and
                    ``(B) enrolled in an institution of higher 
                education.
            ``(3) Qualified educational expenses.--Funds available to an 
        eligible student under this subsection may be used for--
                    ``(A) tuition, fees, books, supplies, and equipment 
                required for the enrollment or attendance of the 
                eligible student at an institution of higher education; 
                and
                    ``(B) in the case of an eligible student with 
                special needs, expenses for special needs services that 
                are incurred in connection with such enrollment or 
                attendance.
            ``(4) Return of funds.--
                    ``(A) Redistribution.--
                          ``(i) In general.--Funds held in reserve under 
                      paragraph (1) that are not used by an eligible 
                      student within six years of the student's 
                      scheduled completion of secondary school may be 
                      redistributed by the eligible entity to other 
                      eligible students.
                          ``(ii) Return of excess to the secretary.--If, 
                      after meeting the requirements of paragraph (1) 
                      and, if applicable, redistributing excess funds in 
                      accordance with clause (i) of this subparagraph, 
                      an eligible entity has funds held in reserve under 
                      paragraph (1) that remain available, the eligible 
                      entity shall return such remaining reserved funds 
                      to the Secretary for distribution to other 
                      grantees under this chapter in accordance with the 
                      funding rules described in section 404B(a).
                    ``(B) Nonparticipating entity.--Notwithstanding 
                subparagraph (A), in the case of an eligible entity that 
                does not receive assistance under this subpart for six 
                fiscal years, the eligible entity shall return any funds 
                held in reserve under paragraph (1) that are not awarded 
                or obligated to eligible students to the Secretary for 
                distribution to other grantees under this chapter.''; 
                and
            (6) in subsection (g)(4) (as redesignated by paragraph (2)), 
        by striking ``early intervention component required under 
        section 404D'' and inserting ``activities required under section 
        404D(a)''.

    (f) 21st Century Scholar Certificates.--Section 404F (20 U.S.C. 
1070a-26) is amended by striking subsections (a) and (b) and inserting 
the following:
    ``(a) In General.--An eligible entity that receives a grant under 
this chapter shall provide certificates, to be known as 21st Century

[[Page 122 STAT. 3215]]

Scholar Certificates, to all students served by the eligible entity who 
are participating in a program under this chapter.
    ``(b) Information Required.--A 21st Century Scholar Certificate 
shall be personalized for each student and indicate the amount of 
Federal financial aid for college and the estimated amount of any 
scholarship provided under section 404E, if applicable, that a student 
may be eligible to receive.''.
    (g) Evaluation.--Section 404G(c) (20 U.S.C. 1070a-27(c)) is amended 
by adding at the end the following: ``Such evaluation shall include a 
separate analysis of--
            ``(1) the implementation of the scholarship component 
        described in section 404E; and
            ``(2) the use of methods for complying with matching 
        requirements described in paragraphs (1) and (2) of section 
        404C(c).''.

    (h) Authorization of Appropriations.--Section 404H (20 U.S.C. 1070a-
28) is amended by striking ``$200,000,000 for fiscal year 1999'' and all 
that follows through the period and inserting ``$400,000,000 for fiscal 
year 2009 and such sums as may be necessary for each of the five 
succeeding fiscal years.''.
SEC. 405. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.

    Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 1070a-31 et 
seq.) is repealed.
SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

    (a) Appropriations Authorized.--Section 413A(b)(1) (20 U.S.C. 
1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year 
1999'' and all that follows through the period and inserting ``such sums 
as may be necessary for fiscal year 2009 and each of the five succeeding 
fiscal years.''.
    (b) Allowance for Books and Supplies.--Section 413D(c)(3)(D) (20 
U.S.C. 1070b-3(c)(3)(D)) is amended by striking ``$450'' and inserting 
``$600''.
    (c) Technical Correction.--Section 413D(a)(1) (20 U.S.C. 1070b-
3(a)(1)) is amended by striking ``such institution'' and all that 
follows through the period and inserting ``such institution received 
under subsections (a) and (b) of this section for fiscal year 1999 (as 
such subsections were in effect with respect to allocations for such 
fiscal year).''.
SEC. 407. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM.

    (a) Authorization of Appropriations.--Section 415A(b) (20 U.S.C. 
1070c(b)) is amended by striking paragraphs (1) and (2) and inserting 
the following:
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this subpart $200,000,000 for fiscal year 2009 and 
        such sums as may be necessary for each of the five succeeding 
        fiscal years.
            ``(2) Reservation.--For any fiscal year for which the amount 
        appropriated under paragraph (1) exceeds $30,000,000, the excess 
        amount shall be available to carry out section 415E.''.

    (b) Applications.--Section 415C(b) (20 U.S.C. 1070c-2(b)) is 
amended--
            (1) in paragraph (2), by striking ``not in excess of $5,000 
        per academic year'' and inserting ``not to exceed the lesser

[[Page 122 STAT. 3216]]

        of $12,500 or the student's cost of attendance per academic 
        year''; and
            (2) in paragraph (9), by striking ``and'' after the 
        semicolon;
            (3) in paragraph (10)--
                    (A) by striking ``a direct appropriation of''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (4) by adding at the end the following:
            ``(11) provides notification to eligible students that such 
        grants are--
                    ``(A) Leveraging Educational Assistance Partnership 
                Grants; and
                    ``(B) funded by the Federal Government, the State, 
                and, where applicable, other contributing partners.''.

    (c) Grants for Access and Persistence.--Section 415E (20 U.S.C. 
1070c-3a) is amended to read as follows:
``SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE.

    ``(a) Purpose.--It is the purpose of this section to expand college 
access and increase college persistence by making allotments to States 
to enable the States to--
            ``(1) expand and enhance partnerships with institutions of 
        higher education, early information and intervention, mentoring, 
        or outreach programs, private corporations, philanthropic 
        organizations, and other interested parties, including 
        community-based organizations, in order to--
                    ``(A) carry out activities under this section; and
                    ``(B) provide coordination and cohesion among 
                Federal, State, and local governmental and private 
                efforts that provide financial assistance to help low-
                income students attend an institution of higher 
                education;
            ``(2) provide need-based grants for access and persistence 
        to eligible low-income students;
            ``(3) provide early notification to low-income students of 
        the students' eligibility for financial aid; and
            ``(4) encourage increased participation in early information 
        and intervention, mentoring, or outreach programs.

    ``(b) Allotments to States.--
            ``(1) In general.--
                    ``(A) Authorization.--From sums reserved under 
                section 415A(b)(2) for each fiscal year, the Secretary 
                shall make an allotment to each State that submits an 
                application for an allotment in accordance with 
                subsection (c) to enable the State to pay the Federal 
                share, as described in paragraph (2), of the cost of 
                carrying out the activities under subsection (d).
                    ``(B) Determination of allotment.--In making 
                allotments under subparagraph (A), the Secretary shall 
                consider the following:
                          ``(i) Continuation of award.--If a State 
                      continues to meet the specifications established 
                      in such State's application under subsection (c), 
                      the Secretary shall make an allotment to such 
                      State that is not less than the allotment made to 
                      such State for the previous fiscal year.

[[Page 122 STAT. 3217]]

                          ``(ii) Priority.--The Secretary shall give 
                      priority in making allotments to States that meet 
                      the requirements described in paragraph 
                      (2)(B)(ii).
            ``(2) Federal share.--
                    ``(A) In general.--The Federal share of the cost of 
                carrying out the activities under subsection (d) for any 
                fiscal year shall not exceed 66.66 percent.
                    ``(B) Different percentages.--The Federal share 
                under this section shall be determined in accordance 
                with the following:
                          ``(i) The Federal share of the cost of 
                      carrying out the activities under subsection (d) 
                      shall be 57 percent if a State applies for an 
                      allotment under this section in partnership with 
                      any number of degree-granting institutions of 
                      higher education in the State whose combined full-
                      time enrollment represents less than a majority of 
                      all students attending institutions of higher 
                      education in the State, and--
                                    ``(I) philanthropic organizations 
                                that are located in, or that provide 
                                funding in, the State; or
                                    ``(II) private corporations that are 
                                located in, or that do business in, the 
                                State.
                          ``(ii) The Federal share of the cost of 
                      carrying out the activities under subsection (d) 
                      shall be 66.66 percent if a State applies for an 
                      allotment under this section in partnership with 
                      any number of degree-granting institutions of 
                      higher education in the State whose combined full-
                      time enrollment represents a majority of all 
                      students attending institutions of higher 
                      education in the State, and--
                                    ``(I) philanthropic organizations 
                                that are located in, or that provide 
                                funding in, the State; or
                                    ``(II) private corporations that are 
                                located in, or that do business in, the 
                                State.
                    ``(C) Non-federal share.--
                          ``(i) In general.--The non-Federal share under 
                      this section may be provided in cash or in kind, 
                      fairly evaluated.
                          ``(ii) In-kind contribution.--For the purpose 
                      of calculating the non-Federal share under this 
                      subparagraph, an in-kind contribution is a non-
                      cash contribution that--
                                    ``(I) has monetary value, such as 
                                the provision of--
                                            ``(aa) room and board; or
                                            ``(bb) transportation 
                                        passes; and
                                    ``(II) helps a student meet the cost 
                                of attendance at an institution of 
                                higher education.
                          ``(iii) Effect on need analysis.--For the 
                      purpose of calculating a student's need in 
                      accordance with part F, an in-kind contribution 
                      described in clause (ii) shall not be considered 
                      an asset or income of the student or the student's 
                      parent.

    ``(c) Application for Allotment.--
            ``(1) In general.--

[[Page 122 STAT. 3218]]

                    ``(A) Submission.--A State that desires to receive 
                an allotment under this section on behalf of a 
                partnership described in paragraph (3) shall submit an 
                application to the Secretary at such time, in such 
                manner, and containing such information as the Secretary 
                may require.
                    ``(B) Content.--An application submitted under 
                subparagraph (A) shall include the following:
                          ``(i) A description of the State's plan for 
                      using the allotted funds.
                          ``(ii) An assurance that the State will 
                      provide matching funds, in cash or in kind, from 
                      State, institutional, philanthropic, or private 
                      funds, of not less than 33.33 percent of the cost 
                      of carrying out the activities under subsection 
                      (d). The State shall specify the methods by which 
                      matching funds will be paid. A State that uses 
                      non-Federal funds to create or expand partnerships 
                      with entities described in subsection (a)(1), in 
                      which such entities match State funds for student 
                      scholarships, may apply such matching funds from 
                      such entities toward fulfilling the State's 
                      matching obligation under this clause.
                          ``(iii) An assurance that the State will use 
                      funds provided under this section to supplement, 
                      and not supplant, Federal and State funds 
                      available for carrying out the activities under 
                      this title.
                          ``(iv) An assurance that early information and 
                      intervention, mentoring, or outreach programs 
                      exist within the State or that there is a plan to 
                      make such programs widely available.
                          ``(v) A description of the organizational 
                      structure that the State has in place to 
                      administer the activities under subsection (d), 
                      including a description of how the State will 
                      compile information on degree completion of 
                      students receiving grants under this section.
                          ``(vi) A description of the steps the State 
                      will take to ensure that students who receive 
                      grants under this section persist to degree 
                      completion.
                          ``(vii) An assurance that the State has a 
                      method in place, such as acceptance of the 
                      automatic zero expected family contribution 
                      determination described in section 479(c), to 
                      identify eligible low-income students and award 
                      State grant aid to such students.
                          ``(viii) An assurance that the State will 
                      provide notification to eligible low-income 
                      students that grants under this section are--
                                    ``(I) Leveraging Educational 
                                Assistance Partnership Grants; and
                                    ``(II) funded by the Federal 
                                Government and the State, and, where 
                                applicable, other contributing partners.
            ``(2) State agency.--The State agency that submits an 
        application for a State under section 415C(a) shall be the same 
        State agency that submits an application under paragraph (1) for 
        such State.
            ``(3) Partnership.--In applying for an allotment under this 
        section, the State agency shall apply for the allotment in 
        partnership with--

[[Page 122 STAT. 3219]]

                    ``(A) not less than one public and one private 
                degree-granting institution of higher education that are 
                located in the State, if applicable;
                    ``(B) new or existing early information and 
                intervention, mentoring, or outreach programs located in 
                the State; and
                    ``(C) not less than one--
                          ``(i) philanthropic organization located in, 
                      or that provides funding in, the State; or
                          ``(ii) private corporation located in, or that 
                      does business in, the State.
            ``(4) Roles of partners.--
                    ``(A) State agency.--A State agency that is in a 
                partnership receiving an allotment under this section--
                          ``(i) shall--
                                    ``(I) serve as the primary 
                                administrative unit for the partnership;
                                    ``(II) provide or coordinate non-
                                Federal share funds, and coordinate 
                                activities among partners;
                                    ``(III) encourage each institution 
                                of higher education in the State to 
                                participate in the partnership;
                                    ``(IV) <<NOTE: Notification.>> make 
                                determinations and early notifications 
                                of assistance as described under 
                                subsection (d)(2); and
                                    
                                ``(V) <<NOTE: Deadline. Reports.>> annual
                                ly report to the Secretary on the 
                                partnership's progress in meeting the 
                                purpose of this section; and
                          ``(ii) may provide early information and 
                      intervention, mentoring, or outreach programs.
                    ``(B) Degree-granting institutions of higher 
                education.--A degree-granting institution of higher 
                education that is in a partnership receiving an 
                allotment under this section--
                          ``(i) shall--
                                    ``(I) recruit and admit 
                                participating qualified students and 
                                provide such additional institutional 
                                grant aid to participating students as 
                                agreed to with the State agency;
                                    ``(II) provide support services to 
                                students who receive grants for access 
                                and persistence under this section and 
                                are enrolled at such institution; and
                                    ``(III) assist the State in the 
                                identification of eligible students and 
                                the dissemination of early notifications 
                                of assistance as agreed to with the 
                                State agency; and
                          ``(ii) may provide funding for early 
                      information and intervention, mentoring, or 
                      outreach programs or provide such services 
                      directly.
                    ``(C) Programs.--An early information and 
                intervention, mentoring, or outreach program that is in 
                a partnership receiving an allotment under this section 
                shall provide direct services, support, and information 
                to participating students.
                    ``(D) Philanthropic organization or private 
                corporation.--A philanthropic organization or private 
                corporation that is in a partnership receiving an 
                allotment

[[Page 122 STAT. 3220]]

                under this section shall provide funds for grants for 
                access and persistence for participating students, or 
                provide funds or support for early information and 
                intervention, mentoring, or outreach programs.

    ``(d) Authorized Activities.--
            ``(1) In general.--
                    ``(A) Establishment of partnership.--Each State 
                receiving an allotment under this section shall use the 
                funds to establish a partnership to award grants for 
                access and persistence to eligible low-income students 
                in order to increase the amount of financial assistance 
                such students receive under this subpart for 
                undergraduate education expenses.
                    ``(B) Amount of grants.--The amount of a grant for 
                access and persistence awarded by a State to a student 
                under this section shall be not less than--
                          ``(i) the average undergraduate tuition and 
                      mandatory fees at the public institutions of 
                      higher education in the State where the student 
                      resides that are of the same type of institution 
                      as the institution of higher education the student 
                      attends; minus
                          ``(ii) other Federal and State aid the student 
                      receives.
                    ``(C) Special rules.--
                          ``(i) Partnership institutions.--A State 
                      receiving an allotment under this section may 
                      restrict the use of grants for access and 
                      persistence under this section by awarding the 
                      grants only to students attending institutions of 
                      higher education that are participating in the 
                      partnership.
                          ``(ii) Out-of-state institutions.--If a State 
                      provides grants through another program under this 
                      subpart to students attending institutions of 
                      higher education located in another State, grants 
                      awarded under this section may be used at 
                      institutions of higher education located in 
                      another State.
            ``(2) Early notification.--
                    ``(A) In general.-- <<NOTE: Deadline.>> Each State 
                receiving an allotment under this section shall annually 
                notify low-income students in grades seven through 12 in 
                the State, and their families, of their potential 
                eligibility for student financial assistance, including 
                an access and persistence grant, to attend an 
                institution of higher education.
                    ``(B) Content of notice.--The notice under 
                subparagraph (A)--
                          ``(i) shall include--
                                    ``(I) information about early 
                                information and intervention, mentoring, 
                                or outreach programs available to the 
                                student;
                                    ``(II) information that a student's 
                                eligibility for a grant for access and 
                                persistence is enhanced through 
                                participation in an early information 
                                and intervention, mentoring, or outreach 
                                program;
                                    ``(III) an explanation that student 
                                and family eligibility for, and 
                                participation in, other Federal means-
                                tested programs may indicate eligibility 
                                for

[[Page 122 STAT. 3221]]

                                a grant for access and persistence and 
                                other student aid programs;
                                    ``(IV) a nonbinding estimate of the 
                                total amount of financial aid that a 
                                low-income student with a similar income 
                                level may expect to receive, including 
                                an estimate of the amount of a grant for 
                                access and persistence and an estimate 
                                of the amount of grants, loans, and all 
                                other available types of aid from the 
                                major Federal and State financial aid 
                                programs;
                                    ``(V) an explanation that in order 
                                to be eligible for a grant for access 
                                and persistence, at a minimum, a student 
                                shall--
                                            ``(aa) meet the requirement 
                                        under paragraph (3);
                                            ``(bb) graduate from 
                                        secondary school; and
                                            ``(cc) enroll at an 
                                        institution of higher 
                                        education--

                                              
                                              
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                                    ``(VI) information on any additional 
                                requirements (such as a student pledge 
                                detailing student responsibilities) that 
                                the State may impose for receipt of a 
                                grant for access and persistence under 
                                this section; and
                                    ``(VII) instructions on how to apply 
                                for a grant for access and persistence 
                                and an explanation that a student is 
                                required to file a Free Application for 
                                Federal Student Aid authorized under 
                                section 483(a) to be eligible for such 
                                grant and assistance from other Federal 
                                and State financial aid programs; and
                          ``(ii) may include a disclaimer that grant 
                      awards for access and persistence are contingent 
                      on--
                                    ``(I) a determination of the 
                                student's financial eligibility at the 
                                time of the student's enrollment at an 
                                institution of higher education that is 
                                a partner in the partnership or 
                                qualifies under subsection 
                                (d)(1)(C)(ii);
                                    ``(II) annual Federal and State 
                                spending for higher education; and
                                    ``(III) other aid received by the 
                                student at the time of the student's 
                                enrollment at such institution of higher 
                                education.
            ``(3) Eligibility.--In determining which students are 
        eligible to receive grants for access and persistence, the State 
        shall ensure that each such student complies with the following 
        subparagraph (A) or (B):
                    ``(A) Meets not less than two of the following 
                criteria, with priority given to students meeting all of 
                the following criteria:
                          ``(i) Has an expected family contribution 
                      equal to zero, as determined under part F, or a 
                      comparable

[[Page 122 STAT. 3222]]

                      alternative based upon the State's approved 
                      criteria in section 415C(b)(4).
                          ``(ii) Qualifies for the State's maximum 
                      undergraduate award, as authorized under section 
                      415C(b).
                          ``(iii) Is participating in, or has 
                      participated in, a Federal, State, institutional, 
                      or community early information and intervention, 
                      mentoring, or outreach program, as recognized by 
                      the State agency administering activities under 
                      this section.
                    ``(B) Is receiving, or has received, a grant for 
                access and persistence under this section, in accordance 
                with paragraph (5).
            ``(4) Grant award.--Once a student, including those students 
        who have received early notification under paragraph (2) from 
        the State, applies for admission to an institution that is a 
        partner in the partnership, files a Free Application for Federal 
        Student Aid and any related State form, and is determined 
        eligible by the State under paragraph (3), the State shall--
                    ``(A) issue the student a preliminary award 
                certificate for a grant for access and persistence with 
                estimated award amounts; and
                    ``(B) inform the student that payment of the grant 
                for access and persistence award amounts is subject to 
                certification of enrollment and award eligibility by the 
                institution of higher education.
            ``(5) Duration of award.--An eligible student who receives a 
        grant for access and persistence under this section shall 
        receive such grant award for each year of such student's 
        undergraduate education in which the student remains eligible 
        for assistance under this title, including pursuant to section 
        484(c), and remains financially eligible as determined by the 
        State, except that the State may impose reasonable time limits 
        to degree completion.

    ``(e) Administrative Cost Allowance.--A State that receives an 
allotment under this section may reserve not more than two percent of 
the funds made available annually through the allotment for State 
administrative functions required to carry out this section.
    ``(f) Statutory and Regulatory Relief for Institutions of Higher 
Education.-- <<NOTE: Waiver authority.>> The Secretary may grant, upon 
the request of an institution of higher education that is in a 
partnership described in subsection (b)(2)(B)(ii) and that receives an 
allotment under this section, a waiver for such institution from 
statutory or regulatory requirements that inhibit the ability of the 
institution to successfully and efficiently participate in the 
activities of the partnership.

    ``(g) Applicability Rule.--The provisions of this subpart that are 
not inconsistent with this section shall apply to the program authorized 
by this section.
    ``(h) Maintenance of Effort Requirement.--Each State receiving an 
allotment under this section for a fiscal year shall provide the 
Secretary with an assurance that the aggregate amount expended per 
student or the aggregate expenditures by the State, from funds derived 
from non-Federal sources, for the authorized activities described in 
subsection (d) for the preceding fiscal year

[[Page 122 STAT. 3223]]

were not less than the amount expended per student or the aggregate 
expenditure by the State for the activities for the second preceding 
fiscal year.
    ``(i) Special Rule.--Notwithstanding subsection (h), for purposes of 
determining a State's share of the cost of the authorized activities 
described in subsection (d), the State shall consider only those 
expenditures from non-Federal sources that exceed the State's total 
expenditures for need-based grants, scholarships, and work-study 
assistance for fiscal year 1999 (including any such assistance provided 
under this subpart).
    ``(j) <<NOTE: Effective date.>>  Continuation and Transition.--For 
the two-year period that begins on the date of enactment of the Higher 
Education Opportunity Act, the Secretary shall continue to award grants 
under section 415E of the Higher Education Act of 1965 as such section 
existed on the day before the date of enactment of the Higher Education 
Opportunity Act to States that choose to apply for grants under such 
predecessor section.

    ``(k) Reports.--Not later than three years after the date of 
enactment of the Higher Education Opportunity Act and annually 
thereafter, the Secretary shall submit a report describing the 
activities and the impact of the partnerships under this section to the 
authorizing committees.''.
SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED 
                        IN MIGRANT AND SEASONAL FARMWORK.

    Section 418A (20 U.S.C. 1070d-2) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(B)(i), by striking ``parents'' 
                and inserting ``immediate family'';
                    (B) in paragraph (3)(B), by inserting ``(including 
                preparation for college entrance examinations)'' after 
                ``college program'';
                    (C) in paragraph (5), by striking ``weekly'';
                    (D) in paragraph (7), by striking ``and'' after the 
                semicolon;
                    (E) in paragraph (8)--
                          (i) by inserting ``(such as transportation and 
                      child care)'' after ``services''; and
                          (ii) by striking the period at the end and 
                      inserting ``; and''; and
                    (F) by adding at the end the following:
            ``(9) other activities to improve persistence and retention 
        in postsecondary education.'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                          (i) in subparagraph (A)--
                                    (I) by striking ``parents'' and 
                                inserting ``immediate family''; and
                                    (II) by striking ``(or such part's 
                                predecessor authority)'';
                          (ii) in subparagraph (B)--
                                    (I) in the matter preceding clause 
                                (i), by inserting ``to improve 
                                placement, persistence, and retention in 
                                postsecondary education,'' after 
                                ``services''; and

[[Page 122 STAT. 3224]]

                                    (II) in clause (i), by striking 
                                ``and career'' and inserting ``career, 
                                and economic education or personal 
                                finance'';
                          (iii) in subparagraph (E), by striking ``and'' 
                      after the semicolon;
                          (iv) by redesignating subparagraph (F) as 
                      subparagraph (G);
                          (v) by inserting after subparagraph (E) the 
                      following:
            ``(F) internships; and''; and
                          (vi) in subparagraph (G) (as redesignated by 
                      clause (iv)), by striking ``support services'' and 
                      inserting ``essential supportive services (such as 
                      transportation and child care)'' ; and
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by striking ``and'' 
                      after the semicolon;
                          (ii) in subparagraph (B), by striking the 
                      period at the end and inserting ``, and 
                      coordinating such services, assistance, and aid 
                      with other non-program services, assistance, and 
                      aid, including services, assistance, and aid 
                      provided by community-based organizations, which 
                      may include mentoring and guidance; and''; and
                          (iii) by adding at the end the following:
            ``(C) for students attending two-year institutions of higher 
        education, encouraging the students to transfer to four-year 
        institutions of higher education, where appropriate, and 
        monitoring the rate of transfer of such students.'';
            (3) in subsection (e), by striking ``section 402A(c)(1)'' 
        and inserting ``section 402A(c)(2)'';
            (4) in subsection (f)--
                    (A) in paragraph (1), by striking ``$150,000'' and 
                inserting ``$180,000''; and
                    (B) in paragraph (2), by striking ``$150,000'' and 
                inserting ``$180,000'';
            (5) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively;
            (6) by inserting after subsection (f) the following:

    ``(g) Reservation and Allocation of Funds.--From the amounts made 
available under subsection (i), the Secretary--
            ``(1) may reserve not more than a total of \1/2\ of one 
        percent for outreach activities, technical assistance, and 
        professional development programs relating to the programs under 
        subsection (a);
            ``(2) for any fiscal year for which the amount appropriated 
        to carry out this section is equal to or greater than 
        $40,000,000, shall, in awarding grants from the remainder of 
        such amounts--
                    ``(A) make available not less than 45 percent of 
                such remainder for the high school equivalency programs 
                and not less than 45 percent of such remainder for the 
                college assistance migrant programs;
                    ``(B) award the rest of such remainder for high 
                school equivalency programs or college assistance 
                migrant programs based on the number, quality, and 
                promise of the applications; and
                    ``(C) consider the need to provide an equitable 
                geographic distribution of such grants; and

[[Page 122 STAT. 3225]]

            ``(3) for any fiscal year for which the amount appropriated 
        to carry out this section is less than $40,000,000, shall, in 
        awarding grants from the remainder of such amounts make 
        available the same percentage of funds to the high school 
        equivalency program and to the college assistance migrant 
        program as was made available for each such program for the 
        fiscal year preceding the fiscal year for which the grant was 
        made.'';
            (7) by striking subsection (h) (as redesignated by paragraph 
        (5)) and inserting the following:

    ``(h) Data Collection.-- <<NOTE: Deadlines.>> The Secretary shall--
            ``(1) annually collect data on persons receiving services 
        authorized under this subpart regarding such persons' rates of 
        secondary school graduation, entrance into postsecondary 
        education, and completion of postsecondary education, as 
        applicable;
            ``(2) <<NOTE: Reports.>> not less often than once every two 
        years, prepare and submit to the authorizing committees a report 
        based on the most recently available data under paragraph (1); 
        and
            ``(3) <<NOTE: Public information.>> make such report 
        available to the public.''; and
            (8) by striking subsection (i) (as redesignated by paragraph 
        (5)) and inserting the following:

    ``(i) Authorization of Appropriations.--For the purpose of making 
grants and contracts under this section, there are authorized to be 
appropriated $75,000,000 for fiscal year 2009 and such sums as may be 
necessary for the each of the five succeeding fiscal years.''.
SEC. 409. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

    (a) Eligibility of Scholars.--Section 419F(a) (20 U.S.C. 1070d-
36(a)) is amended by inserting ``(or a home school, whether treated as a 
home school or a private school under State law)'' after ``public or 
private secondary school''.
    (b) Authorization of Appropriations.--Section 419K (20 U.S.C. 1070d-
41) is amended by striking ``$45,000,000 for fiscal year 1999'' and all 
that follows through the period and inserting ``such sums as may be 
necessary for fiscal year 2009 and each of the five succeeding fiscal 
years.''.
SEC. 410. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

    (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 1070e(b)(2)(B)) 
is amended--
            (1) by striking ``A grant'' and inserting the following:
                          ``(i) In general.--Except as provided in 
                      clause (ii), a grant''; and
            (2) by adding at the end the following:
                          ``(ii) Increase trigger.--For any fiscal year 
                      for which the amount appropriated under the 
                      authority of subsection (g) is equal to or greater 
                      than $20,000,000, a grant under this section shall 
                      be awarded in an amount that is not less than 
                      $30,000.''.

    (b) Eligible Institutions.--Section 419N(b)(4) (20 U.S.C. 
1070e(b)(4)) is amended by inserting ``, except that for any fiscal year 
for which the amount appropriated to carry out this section is equal to 
or greater than $20,000,000, this sentence shall be applied by 
substituting `$250,000' for `$350,000' '' before the period.
    (c) Definition of Low-Income Student.--Paragraph (7) of section 
419N(b) (20 U.S.C. 1070e(b)) is amended to read as follows:

[[Page 122 STAT. 3226]]

            ``(7) Definition of low-income student.--For the purpose of 
        this section, the term `low-income student' means a student--
                    ``(A) who is eligible to receive a Federal Pell 
                Grant for the award year for which the determination is 
                made; or
                    ``(B) who would otherwise be eligible to receive a 
                Federal Pell Grant for the award year for which the 
                determination is made, except that the student fails to 
                meet the requirements of--
                          ``(i) section 401(c)(1) because the student is 
                      enrolled in a graduate or first professional 
                      course of study; or
                          ``(ii) section 484(a)(5) because the student 
                      is in the United States for a temporary 
                      purpose.''.

    (d) Publicity.--Section 419N(b) (20 U.S.C. 1070e(b)) is further 
amended by adding at the end the following new paragraph:
            ``(8) Publicity.-- <<NOTE: Federal 
        Register, publication.>> The Secretary shall publicize the 
        availability of grants under this section in appropriate 
        periodicals, in addition to publication in the Federal Register, 
        and shall inform appropriate educational organizations of such 
        availability.''.

    (e) Reporting Requirements.--Section 419N(e) (20 U.S.C. 1070e(e)) is 
amended--
            (1) in paragraph (1)(A), by striking ``18 months,'' and all 
        that follows through the end and inserting ``annually.''; and
            (2) in paragraph (2)--
                    (A) by striking ``the third annual grant payment'' 
                and inserting ``continuation awards''; and
                    (B) by striking ``the 18-month report'' and 
                inserting ``the reports''.

    (f) Authorization of Appropriations.--Section 419N(g) (20 U.S.C. 
1070e(g)) is amended by striking ``$45,000,000 for fiscal year 1999'' 
and all that follows through the period and inserting ``such sums as may 
be necessary for fiscal year 2009 and each of the five succeeding fiscal 
years.''.
SEC. 411. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

    Subpart 8 of part A of title IV (20 U.S.C. 1070f et seq.) is 
repealed.
SEC. 412. TEACH GRANTS.

    (a) Amendments.--Subpart 9 of part A of title IV (20 U.S.C. 1070g et 
seq.) is amended--
            (1) in section 420N (20 U.S.C. 1070g-2)--
                    (A) in subsection (b)--
                          (i) in paragraph (1)(E), by striking ``and'' 
                      after the semicolon;
                          (ii) in paragraph (2), by striking the period 
                      at the end and inserting ``; and''; and
                          (iii) by adding at the end the following new 
                      paragraph:
            ``(3) contains, or is accompanied by, a plain-language 
        disclosure form developed by the Secretary that clearly 
        describes the nature of the TEACH Grant award, the service 
        obligation, and the loan repayment requirements that are the 
        consequence of the failure to complete the service 
        obligation.''; and
                    (B) by adding at the end the following new 
                subsection:

    ``(d) Additional Administrative Provisions.--

[[Page 122 STAT. 3227]]

            ``(1) Change of high-need designation.--If a recipient of an 
        initial grant under this subpart has acquired an academic 
        degree, or expertise, in a field that was, at the time of the 
        recipient's application for that grant, designated as high need 
        in accordance with subsection (b)(1)(C)(vii), but is no longer 
        so designated, the grant recipient may fulfill the service 
        obligation described in subsection (b)(1) by teaching in that 
        field.
            ``(2) Extenuating circumstances.-- 
        <<NOTE: Regulations.>> The Secretary shall establish, by 
        regulation, categories of extenuating circumstances under which 
        a recipient of a grant under this subpart who is unable to 
        fulfill all or part of the recipient's service obligation may be 
        excused from fulfilling that portion of the service 
        obligation.''; and
            (2) by adding at the end the following new section:
``SEC. 420P. <<NOTE: 20 USC 1070g-4.>> PROGRAM REPORT.

    ``Not later than two years after the date of enactment of the Higher 
Education Opportunity Act and every two years thereafter, the Secretary 
shall prepare and submit to the authorizing committees a report on TEACH 
grants with respect to the schools and students served by recipients of 
such grants. Such report shall take into consideration information 
related to--
            ``(1) the number of TEACH grant recipients;
            ``(2) the degrees obtained by such recipients;
            ``(3) the location, including the school, local educational 
        agency, and State, where the recipients completed the service 
        agreed to under section 420N(b) and the subject taught;
            ``(4) the duration of such service; and
            ``(5) any other data necessary to conduct such 
        evaluation.''.

    (b) <<NOTE: 20 USC 1070g-2 note.>>  Effective Date.--The amendments 
made by subsection (a)(1) shall take effect on July 1, 2010.

              PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

SEC. 421. LIMITATIONS ON AMOUNTS OF LOANS COVERED BY FEDERAL 
                        INSURANCE.

    Section 424(a) (20 U.S.C. 1074(a)) is amended--
            (1) by striking ``2012'' and inserting ``2014''; and
            (2) by striking ``2016'' and inserting ``2018''.
SEC. 422. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

    (a) Definitions.--
            (1) Amendments.--Subparagraph (C) of section 428(a)(2) (20 
        U.S.C. 1078(a)(2)) is amended to read as follows:
            ``(C) For the purpose of this paragraph--
                    ``(i) a student's cost of attendance shall be 
                determined under section 472;
                    ``(ii) a student's estimated financial assistance 
                means, for the period for which the loan is sought--
                          ``(I) the amount of assistance such student 
                      will receive under subpart 1 of part A (as 
                      determined in accordance with section 484(b)), 
                      subpart 3 of part A, and parts C and E; plus
                          ``(II) other scholarship, grant, or loan 
                      assistance, but excluding--

[[Page 122 STAT. 3228]]

                                    ``(aa) any national service 
                                education award or post-service benefit 
                                under title I of the National and 
                                Community Service Act of 1990; and
                                    ``(bb) any veterans' education 
                                benefits as defined in section 480(c); 
                                and
                    ``(iii) the determination of need and of the amount 
                of a loan by an eligible institution under subparagraph 
                (B) with respect to a student shall be calculated in 
                accordance with part F.''.
            (2) <<NOTE: 20 USC 1078 note.>>  Effective date.--The 
        amendments made by paragraph (1) shall take effect on July 1, 
        2010.

    (b) Duration of Authority To Make Interest Subsidized Loans.--
Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is amended--
            (1) by striking ``2012'' and inserting ``2014''; and
            (2) by striking ``2016'' and inserting ``2018''.

    (c) Insurance Program Agreements.--
            (1) Deferment information requirements.--Section 
        428(b)(1)(Y) (20 U.S.C. 1078(b)(1)(Y)) is amended--
                    (A) by striking clause (i) and inserting the 
                following:
                          ``(i) the lender shall determine the 
                      eligibility of a borrower for a deferment 
                      described in subparagraph (M)(i) based on--
                                    ``(I) receipt of a request for 
                                deferment from the borrower and 
                                documentation of the borrower's 
                                eligibility for the deferment;
                                    ``(II) receipt of a newly completed 
                                loan application that documents the 
                                borrower's eligibility for a deferment;
                                    ``(III) receipt of student status 
                                information documenting that the 
                                borrower is enrolled on at least a half-
                                time basis; or
                                    ``(IV) the lender's confirmation of 
                                the borrower's half-time enrollment 
                                status through use of the National 
                                Student Loan Data System, if the 
                                confirmation is requested by the 
                                institution of higher education;'';
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                          ``(iii) the lender shall, at the time the 
                      lender grants a deferment to a borrower who 
                      received a loan under section 428H and is eligible 
                      for a deferment under subparagraph (M) of this 
                      paragraph, provide information to the borrower to 
                      assist the borrower in understanding the impact of 
                      the capitalization of interest on the borrower's 
                      loan principal and on the total amount of interest 
                      to be paid during the life of the loan.''.
            (2) Transfer information requirements.--Section 
        428(b)(2)(F)(i) (20 U.S.C. 1078(b)(2)(F)(i)) is amended--
                    (A) in subclause (III), by striking ``and'' after 
                the semicolon;
                    (B) in subclause (IV), by striking ``and'' after the 
                semicolon; and
                    (C) by adding at the end the following:
                                    ``(V) the effective date of the 
                                transfer;

[[Page 122 STAT. 3229]]

                                    ``(VI) the date on which the current 
                                servicer (as of the date of the notice) 
                                will stop accepting payments; and
                                    ``(VII) the date on which the new 
                                servicer will begin accepting payments; 
                                and''.

    (d) Restrictions on Inducements, Payments, Mailings, and 
Advertising.--Paragraph (3) of section 428(b) (20 U.S.C. 1078(b)(3)) is 
amended to read as follows:
            ``(3) Restrictions on inducements, payments, mailings, and 
        advertising.--A guaranty agency shall not--
                    ``(A) offer, directly or indirectly, premiums, 
                payments, stock or other securities, prizes, travel, 
                entertainment expenses, tuition payment or 
                reimbursement, or other inducements to--
                          ``(i) any institution of higher education or 
                      the employees of an institution of higher 
                      education in order to secure applicants for loans 
                      made under this part; or
                          ``(ii) any lender, or any agent, employee, or 
                      independent contractor of any lender or guaranty 
                      agency, in order to administer or market loans 
                      made under this part (other than a loan made as 
                      part of the guaranty agency's lender-of-last-
                      resort program pursuant to section 428(j)), for 
                      the purpose of securing the designation of the 
                      guaranty agency as the insurer of such loans;
                    ``(B) conduct unsolicited mailings, by postal or 
                electronic means, of student loan application forms to 
                students enrolled in secondary schools or postsecondary 
                educational institutions, or to the families of such 
                students, except that applications may be mailed, by 
                postal or electronic means, to students or borrowers who 
                have previously received loans guaranteed under this 
                part by the guaranty agency;
                    ``(C) perform, for an institution of higher 
                education participating in a program under this title, 
                any function that such institution is required to 
                perform under this title, except that the guaranty 
                agency may perform functions on behalf of such 
                institution in accordance with section 485(b);
                    ``(D) pay, on behalf of an institution of higher 
                education, another person to perform any function that 
                such institution is required to perform under this 
                title, except that the guaranty agency may perform 
                functions on behalf of such institution in accordance 
                with section 485(b); or
                    ``(E) conduct fraudulent or misleading advertising 
                concerning loan availability, terms, or conditions.
        It shall not be a violation of this paragraph for a guaranty 
        agency to provide technical assistance to institutions of higher 
        education comparable to the technical assistance provided to 
        institutions of higher education by the Department.''.

    (e) Information Regarding Income-Based Repayment Plans.--
            (1) In general.--Section 428(b)(9)(A) (20 U.S.C. 
        1078(b)(9)(A)) is amended--
                    (A) in clause (iii), by striking ``and'' after the 
                semicolon;

[[Page 122 STAT. 3230]]

                    (B) in clause (iv), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                          ``(v) <<NOTE: Effective date.>> beginning July 
                      1, 2009, an income-based repayment plan that 
                      enables a borrower who has a partial financial 
                      hardship to make a lower monthly payment in 
                      accordance with section 493C, except that the plan 
                      described in this clause shall not be available to 
                      a borrower for a loan under section 428B made on 
                      behalf of a dependent student or for a 
                      consolidation loan under section 428C, if the 
                      proceeds of such loan were used to discharge the 
                      liability of a loan under section 428B made on 
                      behalf of a dependent student.''.
            (2) Conforming amendment.--Section 428(b)(1)(L)(i) (20 
        U.S.C. 1078(b)(1)(L)(i)) is amended by striking ``clause (ii) or 
        (iii)'' and inserting ``clause (ii), (iii), or (v)''.

    (f) Forbearance Information Requirements in Guaranty Agreements.--
Section 428(c) (20 U.S.C. 1078(c)) is amended--
            (1) in paragraph (2)(H)(i), by striking ``preclaims'' and 
        inserting ``default aversion''; and
            (2) in paragraph (3)(C)--
                    (A) in clause (i), by striking ``and'' after the 
                semicolon;
                    (B) in clause (ii), by striking ``and'' after the 
                semicolon; and
                    (C) by inserting after clause (ii) the following:
                          ``(iii) the lender shall, at the time of 
                      granting a borrower forbearance, provide 
                      information to the borrower to assist the borrower 
                      in understanding the impact of capitalization of 
                      interest on the borrower's loan principal and 
                      total amount of interest to be paid during the 
                      life of the loan; and
                          ``(iv) <<NOTE: Deadline.>> the lender shall 
                      contact the borrower not less often than once 
                      every 180 days during the period of forbearance to 
                      inform the borrower of--
                                    ``(I) the amount of unpaid principal 
                                and the amount of interest that has 
                                accrued since the last statement of such 
                                amounts provided to the borrower by the 
                                lender;
                                    ``(II) the fact that interest will 
                                accrue on the loan for the period of 
                                forbearance;
                                    ``(III) the amount of interest that 
                                will be capitalized, and the date on 
                                which capitalization will occur;
                                    ``(IV) the option of the borrower to 
                                pay the interest that has accrued before 
                                the interest is capitalized; and
                                    ``(V) the borrower's option to 
                                discontinue the forbearance at any time; 
                                and''.

    (g) Applicability of Usury Laws.--
            (1) Amendment.--Section 428(d) (20 U.S.C. 1078(d)) is 
        amended by inserting ``and section 207 of the Servicemembers 
        Civil Relief Act (50 U.S.C. App. 527)'' after ``this Act''.
            (2) Conforming amendment.--Section 438 (20 U.S.C. 1087-1) is 
        amended by adding at the end the following new subsection:

    ``(g) Special Rule.--With respect to any loan made under this part 
for which the interest rate is determined under the

[[Page 122 STAT. 3231]]

Servicemembers Civil Relief Act (50 U.S.C. App. 527), the applicable 
interest rate to be subtracted in calculating the special allowance for 
such loan under this section shall be the interest rate determined under 
that Act for such loan.''.
            (3) <<NOTE: 20 USC 1078 note.>>  Effective dates.--The 
        amendment made by paragraph (1) shall take effect on the date of 
        enactment of this Act, and the amendment made by paragraph (2) 
        shall take effect for loans for which the first disbursement is 
        made on or after July 1, 2008.

    (h) Repeal of Duplicative Notice Requirement.--Subsection (e) of 
section 428 (20 U.S.C. 1078(e)) is repealed.
    (i) Information on Defaults.--Section 428(k) (20 U.S.C. 1078(k)) is 
amended by adding at the end the following:
            ``(4) Provision of information to borrowers in default.--
        Each guaranty agency that has received a default claim from a 
        lender regarding a borrower, shall provide the borrower in 
        default, on not less than two separate occasions, with a notice, 
        in simple and understandable terms, of not less than the 
        following information:
                    ``(A) The options available to the borrower to 
                remove the borrower's loan from default.
                    ``(B) The relevant fees and conditions associated 
                with each option.''.

    (j) Authority to Require Income-Based Repayment.--Section 428(m) (20 
U.S.C. 1078(m)) is amended--
            (1) in the subsection heading, by inserting ``and Income-
        Based'' after ``Income Contingent'';
            (2) in paragraph (1)--
                    (A) by inserting ``or income-based repayment plan'' 
                before ``, the terms and conditions''; and
                    (B) by inserting ``or an income-based repayment plan 
                under section 493C, as the case may be'' before the 
                period at the end; and
            (3) in the paragraph heading of paragraph (2), by inserting 
        ``or income-based'' after ``income contingent''.
SEC. 423. VOLUNTARY FLEXIBLE AGREEMENTS.

    Section 428A(a) (20 U.S.C. 1078-1(a)) is amended by adding at the 
end the following:
            ``(3) Report required.--
                    ``(A) In general.--The Secretary, in consultation 
                with the guaranty agencies operating under voluntary 
                flexible agreements, shall report on an annual basis to 
                the authorizing committees regarding the program 
                outcomes that the voluntary flexible agreements have had 
                with respect to--
                          ``(i) program integrity and program and cost 
                      efficiencies, delinquency prevention, and default 
                      aversion, including a comparison of such outcomes 
                      to such outcomes for each guaranty agency 
                      operating under an agreement under subsection (b) 
                      or (c) of section 428;
                          ``(ii) consumer education programs described 
                      in section 433A; and
                          ``(iii) the availability and delivery of 
                      student financial aid.
                    ``(B) Contents.--Each report described in 
                subparagraph (A) shall include--

[[Page 122 STAT. 3232]]

                          ``(i) a description of each voluntary flexible 
                      agreement and the performance goals established by 
                      the Secretary for each agreement;
                          ``(ii) a list of--
                                    ``(I) guaranty agencies operating 
                                under voluntary flexible agreements;
                                    ``(II) the specific statutory or 
                                regulatory waivers provided to each such 
                                guaranty agency; and
                                    ``(III) any other waivers provided 
                                to other guaranty agencies under 
                                paragraph (1);
                          ``(iii) a description of the standards by 
                      which each guaranty agency's performance under the 
                      guaranty agency's voluntary flexible agreement was 
                      assessed and the degree to which each guaranty 
                      agency achieved the performance standards;
                          ``(iv) an analysis of the fees paid by the 
                      Secretary, and the costs and efficiencies achieved 
                      under each voluntary flexible agreement; and
                          ``(v) an identification of promising practices 
                      for program improvement that could be replicated 
                      by other guaranty agencies.''.
SEC. 424. FEDERAL PLUS LOANS.

    (a) Amendments.--Section 428B (20 U.S.C. 1078-2) is amended--
            (1) in subsection (a)(3)(B)(i), by striking subclause (II) 
        and inserting the following:
                          ``(II) does not otherwise have an adverse 
                      credit history, as determined by the lender in 
                      accordance with the regulations promulgated 
                      pursuant to paragraph (1)(A), as such regulations 
                      were in effect on the day before the date of 
                      enactment of the Ensuring Continued Access to 
                      Student Loans Act of 2008.''; and
            (2) in subsection (d), by striking paragraphs (1) and (2) 
        and inserting the following:
            ``(1) Commencement of repayment.-- 
        <<NOTE: Deadline.>> Repayment of principal on loans made under 
        this section shall commence not later than 60 days after the 
        date such loan is disbursed by the lender, subject to deferral--
                    ``(A)(i) during any period during which the parent 
                borrower or the graduate or professional student 
                borrower meets the conditions required for a deferral 
                under section 427(a)(2)(C) or 428(b)(1)(M); and
                    ``(ii) upon the request of the parent borrower, 
                during any period during which the student on whose 
                behalf the loan was borrowed by the parent borrower 
                meets the conditions required for a deferral under 
                section 427(a)(2)(C)(i)(I) or 428(b)(1)(M)(i)(I); and
                    ``(B)(i) <<NOTE: Time period.>> in the case of a 
                parent borrower, upon the request of the parent 
                borrower, during the 6-month period beginning on the 
                later of--
                          ``(I) the day after the date the student on 
                      whose behalf the loan was borrowed ceases to carry 
                      at least one-half the normal full-time academic 
                      workload (as determined by the institution); or

[[Page 122 STAT. 3233]]

                          ``(II) if the parent borrower is also a 
                      student, the day after the date such parent 
                      borrower ceases to carry at least one-half such a 
                      workload; and
                    ``(ii) in the case of a graduate or professional 
                student borrower, during the 6-month period beginning on 
                the day after the date such student ceases to carry at 
                least one-half the normal full-time academic workload 
                (as determined by the institution).
            ``(2) Capitalization of interest.--
                    ``(A) In general.--Interest on loans made under this 
                section for which payments of principal are deferred 
                pursuant to paragraph (1) shall, if agreed upon by the 
                borrower and the lender--
                          ``(i) be paid monthly or quarterly; or
                          ``(ii) be added to the principal amount of the 
                      loan not more frequently than quarterly by the 
                      lender.
                    ``(B) Insurable limits.--Capitalization of interest 
                under this paragraph shall not be deemed to exceed the 
                annual insurable limit on account of the borrower.''.

    (b) Conforming Amendment.--Section 428(b)(7)(C) (20 U.S.C. 
1078(b)(7)(C)) is amended by striking ``section'' and all that follows 
through ``428C'' and inserting ``section 428B or 428C''.
    (c) <<NOTE: 20 USC 1078 note.>>  Effective Date.--The amendments 
made by this section shall take effect for loans for which the first 
disbursement is made on or after July 1, 2008.
SEC. 425. FEDERAL CONSOLIDATION LOANS.

    (a) Eligible Borrower.--Section 428C(a)(3)(B)(i)(V) (20 U.S.C. 1078-
3(a)(3)(B)(i)(V)) is amended--
            (1) in item (aa), by striking ``or'' after the semicolon;
            (2) in item (bb), by striking the period and inserting ``; 
        or''; and
            (3) by adding at the end the following:
                          ``(cc) for the purpose of using the no accrual 
                      of interest for active duty service members 
                      benefit offered under section 455(o).''.

    (b) Consolidation Loan Lender Agreements.--
            (1) In general.--Section 428C(b)(1) (20 U.S.C. 1078-3(b)(1)) 
        is amended--
                    (A) in subparagraph (E), by striking ``and'' after 
                the semicolon;
                    (B) by redesignating subparagraph (F) as 
                subparagraph (G); and
                    (C) by inserting after subparagraph (E) the 
                following:
                    ``(F) that the lender shall disclose to a 
                prospective borrower, in simple and understandable 
                terms, at the time the lender provides an application 
                for a consolidation loan--
                          ``(i) whether consolidation would result in a 
                      loss of loan benefits under this part or part D, 
                      including loan forgiveness, cancellation, and 
                      deferment;
                          ``(ii) with respect to Federal Perkins Loans 
                      under part E--
                                    ``(I) that if a borrower includes a 
                                Federal Perkins Loan under part E in the 
                                consolidation loan, the borrower will 
                                lose all interest-free periods that 
                                would have been available for the 
                                Federal Perkins Loan, such as--

[[Page 122 STAT. 3234]]

                                            ``(aa) the periods during 
                                        which no interest accrues on 
                                        such loan while the borrower is 
                                        enrolled in school at least 
                                        half-time;
                                            ``(bb) the grace period 
                                        under section 464(c)(1)(A); and
                                            ``(cc) the periods during 
                                        which the borrower's student 
                                        loan repayments are deferred 
                                        under section 464(c)(2);
                                    ``(II) that if a borrower includes a 
                                Federal Perkins Loan in the 
                                consolidation loan, the borrower will no 
                                longer be eligible for cancellation of 
                                part or all of the Federal Perkins Loan 
                                under section 465(a); and
                                    ``(III) the occupations listed in 
                                section 465 that qualify for Federal 
                                Perkins Loan cancellation under section 
                                465(a);
                          ``(iii) the repayment plans that are available 
                      to the borrower;
                          ``(iv) the options of the borrower to prepay 
                      the consolidation loan, to pay such loan on a 
                      shorter schedule, and to change repayment plans;
                          ``(v) that borrower benefit programs for a 
                      consolidation loan may vary among different 
                      lenders;
                          ``(vi) the consequences of default on the 
                      consolidation loan; and
                          ``(vii) that by applying for a consolidation 
                      loan, the borrower is not obligated to agree to 
                      take the consolidation loan; and''.
            (2) Consolidation loans.--Section 428C(b)(5) (20 U.S.C. 
        1078-3(b)(5)) is amended--
                    (A) by inserting after the first sentence the 
                following: ``In addition, in the event that a borrower 
                chooses to obtain a consolidation loan for the purposes 
                of using the no accrual of interest for active duty 
                service members program offered under section 455(o), 
                the Secretary shall offer a Federal Direct Consolidation 
                loan to any such borrower who applies for participation 
                in such program.''; and
                    (B) by striking ``Such direct consolidation loan'' 
                and inserting ``A direct consolidation loan offered 
                under this paragraph''.
            (3) Conforming amendment.--Section 455(g) (20 U.S.C. 
        1087e(g)) is amended by striking ``section 428C(b)(1)(F)'' and 
        inserting ``section 428C(b)(1)(G)''.

    (c) Technical Amendment.--Section 203(b)(2)(C) of the College Cost 
Reduction and Access Act (121 Stat. 794) <<NOTE: 20 USC 1078-3.>> is 
amended by striking ``the second sentence'' and inserting ``the third 
sentence''.

    (d) Income-Based Repayment.--
            (1) Amendments.--Section 428C(c) (20 U.S.C. 1078-3(c)) is 
        amended--
                    (A) in the matter preceding clause (i) of paragraph 
                (2)(A)--
                          (i) by striking ``or income-sensitive'' and 
                      inserting ``income-sensitive, or income-based''; 
                      and
                          (ii) by inserting ``or income-based'' after 
                      ``such income-sensitive''; and
                    (B) in paragraph (3)--
                          (i) in subparagraph (A)--

[[Page 122 STAT. 3235]]

                                    (I) by inserting ``except in the 
                                case of an income-based repayment 
                                schedule under section 493C'', before 
                                ``a repayment''; and
                                    (II) by striking ``and'' after the 
                                semicolon;
                          (ii) in subparagraph (B), by striking the 
                      period at the end and inserting ``; and''; and
                          (iii) by adding at the end the following:
                    ``(C) an income-based repayment schedule under 
                section 493C shall not be available to a consolidation 
                loan borrower who used the proceeds of the loan to 
                discharge the liability on a loan under section 428B, or 
                a Federal Direct PLUS loan, made on behalf of a 
                dependent student.''.
            (2) <<NOTE: 20 USC 1078-3 note.>>  Effective date.--The 
        amendments made by this subsection shall take effect on July 1, 
        2009.

    (e) Extension of Consolidation Loan Authority.--Section 428C(e) (20 
U.S.C. 1078-3(e)) is amended by striking ``2012'' and inserting 
``2014''.
SEC. 426. DEFAULT REDUCTION PROGRAM.

    Section 428F (20 U.S.C. 1078-6) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(A), by adding at the end the 
                following: ``Upon the sale of the loan to an eligible 
                lender, the guaranty agency or other holder of the loan 
                shall request any consumer reporting agency to which the 
                guaranty agency or holder, as applicable, reported the 
                default of the loan, to remove the record of default 
                from the borrower's credit history.''; and
                    (B) by adding at the end the following:
            ``(5) Limitation.--A borrower may obtain the benefits 
        available under this subsection with respect to rehabilitating a 
        loan only one time per loan.''; and
            (2) by adding at the end the following:

    ``(c) Financial and Economic Literacy.--Each program described in 
subsection (b) shall include making available financial and economic 
education materials for a borrower who has rehabilitated a loan.''.
SEC. 427. REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS.

    (a) Special Rule.--Section 428G(a) (20 U.S.C. 1078-7(a)) is amended 
by adding at the end the following:
            ``(4) Amendment to special rule.-- <<NOTE: Effective 
        date.>> Beginning on October 1, 2011, the special rule under 
        paragraph (3) shall be applied by substituting `15 percent' for 
        `10 percent'.''.

    (b) Requirements for Disbursements to First Year Students.--Section 
428G(b) (20 U.S.C. 1078-7(b)) is amended by adding at the end the 
following:
            ``(3) <<NOTE: Effective date.>>  Amendment to cohort default 
        rate exemption.--Beginning on October 1, 2011, the exemption to 
        the requirements of paragraph (1) in the second sentence of such 
        paragraph shall be applied by substituting `15 percent' for `10 
        percent'.''.
SEC. 428. UNSUBSIDIZED STAFFORD LOAN LIMITS.

    (a) Amendments.--Section 428H(d) (20 U.S.C. 1078-8(d)) is amended--
            (1) in paragraph (2)--

[[Page 122 STAT. 3236]]

                    (A) in the paragraph heading, by striking ``Graduate 
                and professional students'' and inserting ``Graduate, 
                professional, and independent postbaccalaureate 
                students''; and
                    (B) in subparagraph (A)--
                          (i) in the matter preceding clause (i), by 
                      inserting ``, or a student described in clause 
                      (ii),'' after ``graduate or professional 
                      student''; and
                          (ii) by striking clause (ii) and inserting the 
                      following:
                          ``(ii) notwithstanding paragraph (4), in the 
                      case of an independent student, or a dependent 
                      student whose parents are unable to borrow under 
                      section 428B or the Federal Direct PLUS Loan 
                      Program, who has obtained a baccalaureate degree 
                      and who is enrolled in coursework specified in 
                      paragraph (3)(B) or (4)(B) of section 484(b)--
                                    ``(I) $7,000 for coursework 
                                necessary for enrollment in a graduate 
                                or professional program; and
                                    ``(II) $7,000 for coursework 
                                necessary for a professional credential 
                                or certification from a State required 
                                for employment as a teacher in an 
                                elementary or secondary school,''; and
            (2) in paragraph (4)(A), by striking clause (iii) and 
        inserting the following:
                          ``(iii) in the case of such a student enrolled 
                      in coursework specified in--
                                    ``(I) section 484(b)(3)(B), $6,000; 
                                or
                                    ``(II) section 484(b)(4)(B), 
                                $7,000.''.

    (b) <<NOTE: 20 USC 1078-8 note.>>  Effective Date.--The amendments 
made by this section shall take effect for loans for which the first 
disbursement is made on or after July 1, 2008.
SEC. 429. LOAN FORGIVENESS FOR TEACHERS EMPLOYED BY EDUCATIONAL 
                        SERVICE AGENCIES.

    Section 428J (20 U.S.C. 1078-10) is amended--
            (1) in subsection (b)(1)(A)--
                    (A) by inserting ``or location'' after ``a school''; 
                and
                    (B) by inserting ``or locations'' after ``schools'';
            (2) in subsection (c)(1), by striking the second sentence;
            (3) in subsection (c)(3)(B)(iii), by inserting ``or, in the 
        case of a teacher who is employed by an educational service 
        agency, as certified by the chief administrative officer of such 
        agency,'' after ``borrower is employed,''; and
            (4) in subsection (g), by striking paragraph (2) and 
        inserting the following:
            ``(2) Prevention of double benefits.--No borrower may, for 
        the same service, receive a benefit under both this section 
        and--
                    ``(A) section 428K;
                    ``(B) section 455(m);
                    ``(C) section 460; or
                    ``(D) subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12571 et 
                seq.).''.
SEC. 430. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.

    Section 428K (20 U.S.C. 1078-11) is amended to read as follows:

[[Page 122 STAT. 3237]]

``SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL 
                          NEED.

    ``(a) Program Authorized.--
            ``(1) Loan forgiveness authorized.--The Secretary shall 
        forgive, in accordance with this section, the qualified loan 
        amount described in subsection (c) of the student loan 
        obligation of a borrower who--
                    ``(A) is employed full-time in an area of national 
                need, as described in subsection (b); and
                    ``(B) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Method of loan forgiveness.--To provide loan 
        forgiveness under paragraph (1), the Secretary is authorized to 
        carry out a program--
                    ``(A) through the holder of the loan, to assume the 
                obligation to repay a qualified loan amount for a loan 
                made, insured, or guaranteed under this part (other than 
                an excepted PLUS loan or an excepted consolidation loan 
                (as such terms are defined in section 493C(a))); and
                    ``(B) to cancel a qualified loan amount for a loan 
                made under part D of this title (other than an excepted 
                PLUS loan or an excepted consolidation loan).
            ``(3) Regulations.--The Secretary is authorized to issue 
        such regulations as may be necessary to carry out this section.

    ``(b) Areas of National Need.--For purposes of this section, an 
individual is employed in an area of national need if the individual 
meets the requirements of one of the following:
            ``(1) Early childhood educators.--The individual is employed 
        full-time as an early childhood educator.
            ``(2) Nurses.--The individual is employed full-time--
                    ``(A) as a nurse in a clinical setting; or
                    ``(B) as a member of the nursing faculty at an 
                accredited school of nursing (as those terms are defined 
                in section 801 of the Public Health Service Act (42 
                U.S.C. 296)).
            ``(3) Foreign language specialists.--The individual--
                    ``(A) has obtained a baccalaureate or advanced 
                degree in a critical foreign language; and
                    ``(B) is employed full-time--
                          ``(i) in an elementary school or secondary 
                      school as a teacher of a critical foreign 
                      language;
                          ``(ii) in an agency of the United States 
                      Government in a position that regularly requires 
                      the use of such critical foreign language; or
                          ``(iii) in an institution of higher education 
                      as a faculty member or instructor teaching a 
                      critical foreign language.
            ``(4) Librarians.--The individual is employed full-time as a 
        librarian in--
                    ``(A) a public library that serves a geographic area 
                within which the public schools have a combined average 
                of 30 percent or more of the schools' total student 
                enrollments composed of children meeting a measure of 
                poverty under section 1113(a)(5) of the Elementary and 
                Secondary Education Act of 1965; or
                    ``(B) a school that qualifies under section 
                465(a)(2)(A) for loan cancellation for Perkins loan 
                recipients who teach in such a school.

[[Page 122 STAT. 3238]]

            ``(5) Highly qualified teachers serving students who are 
        limited english proficient, low-income communities, and 
        underrepresented populations.--The individual--
                    ``(A) is highly qualified, as such term is defined 
                in section 9101 of the Elementary and Secondary 
                Education Act of 1965; and
                    ``(B) is employed full-time--
                          ``(i) as a teacher educating students who are 
                      limited English proficient;
                          ``(ii) as a teacher in a school that qualifies 
                      under section 465(a)(2)(A) for loan cancellation 
                      for Perkins loan recipients who teach in such a 
                      school;
                          ``(iii) as a teacher and is an individual from 
                      an underrepresented population in the teaching 
                      profession, as determined by the Secretary; or
                          ``(iv) as a teacher in an educational service 
                      agency, as such term is defined in section 9101 of 
                      the Elementary and Secondary Education Act of 
                      1965.
            ``(6) Child welfare workers.--The individual--
                    ``(A) has obtained a degree in social work or a 
                related field with a focus on serving children and 
                families; and
                    ``(B) is employed full-time in public or private 
                child welfare services.
            ``(7) Speech-language pathologists and audiologists.--The 
        individual--
                    ``(A) is employed full-time as a speech-language 
                pathologist or audiologist in an eligible preschool 
                program or a school that qualifies under section 
                465(a)(2)(A) for loan cancellation for Perkins loan 
                recipients who teach in such a school; and
                    ``(B) has, at a minimum, a graduate degree in 
                speech-language pathology, audiology, or communication 
                sciences and disorders.
            ``(8) School counselors.--The individual is employed full-
        time as a school counselor (as such term is defined in section 
        5421(e) of the Elementary and Secondary Education Act of 1965), 
        in a school that qualifies under section 465(a)(2)(A) for loan 
        cancellation for Perkins loan recipients who teach in such a 
        school.
            ``(9) Public sector employees.--The individual is employed 
        full-time in--
                    ``(A) public safety (including as a first responder, 
                firefighter, police officer, or other law enforcement or 
                public safety officer);
                    ``(B) emergency management (including as an 
                emergency medical technician);
                    ``(C) public health (including full-time 
                professionals engaged in health care practitioner 
                occupations and health care support occupations, as such 
                terms are defined by the Bureau of Labor Statistics); or
                    ``(D) public interest legal services (including 
                prosecution, public defense, or legal advocacy in low-
                income communities at a nonprofit organization).
            ``(10) Nutrition professionals.--The individual--
                    ``(A) is a licensed, certified, or registered 
                dietician who has completed a degree in a relevant 
                field; and

[[Page 122 STAT. 3239]]

                    ``(B) is employed full-time as a dietician with an 
                agency of the special supplemental nutrition program for 
                women, infants, and children under section 17 of the 
                Child Nutrition Act of 1966 (42 U.S.C. 1786).
            ``(11) Medical specialists.--The individual--
                    ``(A) has received a degree from a medical school at 
                an institution of higher education; and
                    ``(B) has been accepted to, or currently 
                participates in, a full-time graduate medical education 
                training program or fellowship (or both) to provide 
                health care services (as recognized by the Accreditation 
                Council for Graduate Medical Education) that--
                          ``(i) requires more than five years of total 
                      graduate medical training; and
                          ``(ii) has fewer United States medical school 
                      graduate applicants than the total number of 
                      positions available in such program or fellowship.
            ``(12) Mental health professionals.--The individual--
                    ``(A) has not less than a master's degree in social 
                work, psychology, or psychiatry; and
                    ``(B) is employed full-time providing mental health 
                services to children, adolescents, or veterans.
            ``(13) Dentists.--The individual--
                    ``(A)(i) has received a degree from an accredited 
                dental school (as accredited by the Commission on Dental 
                Accreditation);
                    ``(ii) has completed residency training in pediatric 
                dentistry, general dentistry, or dental public health; 
                and
                    ``(iii) is employed full-time as a dentist; or
                    ``(B) is employed full-time as a member of the 
                faculty at a program or school accredited by the 
                Commission on Dental Accreditation.
            ``(14) STEM employees.--The individual is employed full-time 
        in applied sciences, technology, engineering, or mathematics.
            ``(15) Physical therapists.--The individual--
                    ``(A) is a physical therapist; and
                    ``(B) is employed full-time providing physical 
                therapy services to children, adolescents, or veterans.
            ``(16) Superintendents, principals, and other 
        administrators.--The individual is employed full-time as a 
        school superintendent, principal, or other administrator in a 
        local educational agency, including in an educational service 
        agency, in which 30 percent or more of the schools are schools 
        that qualify under section 465(a)(2)(A) for loan cancellation 
        for Perkins loan recipients who teach in such a school.
            ``(17) Occupational therapists.--The individual is an 
        occupational therapist and is employed full-time providing 
        occupational therapy services to children, adolescents, or 
        veterans.

    ``(c) Qualified Loan Amount.--
            ``(1) In general.--Subject to paragraph (2), for each 
        school, academic, or calendar year of full-time employment in an 
        area of national need described in subsection (b) that a 
        borrower completes on or after the date of enactment of the 
        Higher Education Opportunity Act, the Secretary shall forgive 
        not more than $2,000 of the student loan obligation of the 
        borrower

[[Page 122 STAT. 3240]]

        that is outstanding after the completion of each such school, 
        academic, or calendar year of employment, respectively.
            ``(2) Maximum amount.--The Secretary shall not forgive more 
        than $10,000 in the aggregate for any borrower under this 
        section, and no borrower shall receive loan forgiveness under 
        this section for more than five years of service.

    ``(d) Priority.--The Secretary shall grant loan forgiveness under 
this section on a first-come, first-served basis, and subject to the 
availability of appropriations.
    ``(e) Rule of Construction.--Nothing in this section shall be 
construed to authorize the refunding of any repayment of a loan.
    ``(f) Ineligibility for Double Benefits.--No borrower may, for the 
same service, receive a reduction of loan obligations under both this 
section and section 428J, 428L, 455(m), or 460.
    ``(g) Definitions.--In this section:
            ``(1) Audiologist.--The term `audiologist' means an 
        individual who--
                    ``(A) has received, at a minimum, a graduate degree 
                in audiology from an institution of higher education 
                accredited by an agency or association recognized by the 
                Secretary pursuant to section 496(a); and
                    ``(B)(i) provides audiology services under 
                subsection (ll)(2) of section 1861 of the Social 
                Security Act (42 U.S.C. 1395x(ll)(2)); or
                    ``(ii) meets or exceeds the qualifications for a 
                qualified audiologist under subsection (ll)(4) of such 
                section (42 U.S.C. 1395x(ll)(4)).
            ``(2) Early childhood educator.--The term `early childhood 
        educator' means an individual who--
                    ``(A) works directly with children in an eligible 
                preschool program or eligible early childhood education 
                program in a low-income community;
                    ``(B) is involved directly in the care, development, 
                and education of infants, toddlers, or young children 
                age five and under; and
                    ``(C) has completed a baccalaureate or advanced 
                degree in early childhood development or early childhood 
                education, or in a field related to early childhood 
                education.
            ``(3) Eligible preschool program.--The term `eligible 
        preschool program' means a program that--
                    ``(A) provides for the care, development, and 
                education of infants, toddlers, or young children age 
                five and under;
                    ``(B) meets any applicable State or local government 
                licensing, certification, approval, and registration 
                requirements, and
                    ``(C) is operated by--
                          ``(i) a public or private school that is 
                      supported, sponsored, supervised, or administered 
                      by a local educational agency;
                          ``(ii) a Head Start agency serving as a 
                      grantee designated under the Head Start Act (42 
                      U.S.C. 9831 et seq.);
                          ``(iii) a nonprofit or community based 
                      organization; or
                          ``(iv) a child care program, including a home.

[[Page 122 STAT. 3241]]

            ``(4) Eligible early childhood education program.--The term 
        `eligible early childhood education program' means--
                    ``(A) a family child care program, center-based 
                child care program, State prekindergarten program, 
                school program, or other out-of-home early childhood 
                development care program, that--
                          ``(i) is licensed or regulated by the State; 
                      and
                          ``(ii) serves two or more unrelated children 
                      who are not old enough to attend kindergarten;
                    ``(B) a Head Start Program carried out under the 
                Head Start Act (42 U.S.C. 9831 et seq.); or
                    ``(C) an Early Head Start Program carried out under 
                section 645A of the Head Start Act (42 U.S.C. 9840a).
            ``(5) Low-income community.--The term `low-income community' 
        means a school attendance area (as defined in section 
        1113(a)(2)(A) of the Elementary and Secondary Education Act of 
        1965)--
                    ``(A) in which 70 percent of households earn less 
                than 85 percent of the State median household income; or
                    ``(B) that includes a school that qualifies under 
                section 465(a)(2)(A) for loan cancellation for Perkins 
                loan recipients who teach in such a school.
            ``(6) Nurse.--The term `nurse' means a nurse who meets all 
        of the following:
                    ``(A) The nurse graduated from--
                          ``(i) an accredited school of nursing (as 
                      those terms are defined in section 801 of the 
                      Public Health Service Act (42 U.S.C. 296));
                          ``(ii) a nursing center; or
                          ``(iii) an academic health center that 
                      provides nurse training.
                    ``(B) The nurse holds a valid and unrestricted 
                license to practice nursing in the State in which the 
                nurse practices in a clinical setting.
                    ``(C) The nurse holds one or more of the following:
                          ``(i) A graduate degree in nursing, or an 
                      equivalent degree.
                          ``(ii) A nursing degree from a collegiate 
                      school of nursing (as defined in section 801 of 
                      the Public Health Service Act (42 U.S.C. 296)).
                          ``(iii) A nursing degree from an associate 
                      degree school of nursing (as defined in such 
                      section).
                          ``(iv) A nursing degree from a diploma school 
                      of nursing (as defined in such section).
            ``(7) Occupational therapist.--The term `occupational 
        therapist' means an individual who--
                    ``(A) has received, at a minimum, a baccalaureate 
                degree in occupational therapy from an institution of 
                higher education accredited by an agency or association 
                recognized by the Secretary pursuant to section 496(a); 
                and
                    ``(B)(i) provides occupational therapy services 
                under section 1861(g) of the Social Security Act (42 
                U.S.C. 1395x(g)); or
                    ``(ii) meets or exceeds the qualifications for a 
                qualified occupational therapist, as determined by State 
                law.
            ``(8) Physical therapist.--The term `physical therapist' 
        means an individual who--

[[Page 122 STAT. 3242]]

                    ``(A) has received, at a minimum, a graduate degree 
                in physical therapy from an institution of higher 
                education accredited by an agency or association 
                recognized by the Secretary pursuant to section 496(a); 
                and
                    ``(B)(i) provides physical therapy services under 
                section 1861(p) of the Social Security Act (42 U.S.C. 
                1395x(p)); or
                    ``(ii) meets or exceeds the qualifications for a 
                qualified physical therapist, as determined by State 
                law.
            ``(9) Speech-language pathologist.--The term `speech-
        language pathologist' means a speech-language pathologist who--
                    ``(A) has received, at a minimum, a graduate degree 
                in speech-language pathology or communication sciences 
                and disorders from an institution of higher education 
                accredited by an agency or association recognized by the 
                Secretary pursuant to section 496(a); and
                    ``(B) provides speech-language pathology services 
                under section 1861(ll)(1) of the Social Security Act (42 
                U.S.C. 1395x(ll)(1)), or meets or exceeds the 
                qualifications for a qualified speech-language 
                pathologist under subsection (ll)(3) of such section (42 
                U.S.C. 1395x(ll)(3)).

    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary for 
fiscal year 2009 and each of the five succeeding fiscal years to provide 
loan forgiveness in accordance with this section.''.
SEC. 431. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.

    Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting 
after section 428K the following:
``SEC. 428L. <<NOTE: 20 USC 1078-12.>> LOAN REPAYMENT FOR CIVIL 
                          LEGAL ASSISTANCE ATTORNEYS.

    ``(a) Purpose.--The purpose of this section is to encourage 
qualified individuals to enter and continue employment as civil legal 
assistance attorneys.
    ``(b) Definitions.--In this section:
            ``(1) Civil legal assistance attorney.--The term `civil 
        legal assistance attorney' means an attorney who--
                    ``(A) is a full-time employee of--
                          ``(i) a nonprofit organization that provides 
                      legal assistance with respect to civil matters to 
                      low-income individuals without a fee; or
                          ``(ii) a protection and advocacy system or 
                      client assistance program that provides legal 
                      assistance with respect to civil matters and 
                      receives funding under--
                                    ``(I) subtitle C of title I of the 
                                Developmental Disabilities Assistance 
                                and Bill of Rights Act of 2000 (42 
                                U.S.C. 15041 et seq.);
                                    ``(II) section 112 or 509 of the 
                                Rehabilitation Act of 1973 (29 U.S.C. 
                                732, 794e);
                                    ``(III) part A of title I of the 
                                Protection and Advocacy for Individuals 
                                with Mental Illness Act (42 U.S.C. 10801 
                                et seq.);
                                    ``(IV) section 5 of the Assistive 
                                Technology Act of 1998 (29 U.S.C. 3004);

[[Page 122 STAT. 3243]]

                                    ``(V) section 1150 of the Social 
                                Security Act (42 U.S.C. 1320b-21);
                                    ``(VI) section 1253 of the Public 
                                Health Service Act (42 U.S.C. 300d-53); 
                                or
                                    ``(VII) section 291 of the Help 
                                America Vote Act of 2002 (42 U.S.C. 
                                15461);
                    ``(B) as such employee, provides civil legal 
                assistance as described in subparagraph (A) on a full-
                time basis; and
                    ``(C) is continually licensed to practice law.
            ``(2) Student loan.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `student loan' means--
                          ``(i) subject to clause (ii), a loan made, 
                      insured, or guaranteed under this part, part D, or 
                      part E; and
                          ``(ii) a loan made under section 428C or 
                      455(g), to the extent that such loan was used to 
                      repay--
                                    ``(I) a Federal Direct Stafford 
                                Loan, a Federal Direct Unsubsidized 
                                Stafford Loan, or a Federal Direct PLUS 
                                Loan;
                                    ``(II) a loan made under section 
                                428, 428B, or 428H; or
                                    ``(III) a loan made under part E.
                    ``(B) Exclusion of parent plus loans.--The term 
                `student loan' does not include any of the following 
                loans:
                          ``(i) A loan made to the parents of a 
                      dependent student under section 428B.
                          ``(ii) A Federal Direct PLUS Loan made to the 
                      parents of a dependent student.
                          ``(iii) A loan made under section 428C or 
                      455(g), to the extent that such loan was used to 
                      repay--
                                    ``(I) a loan made to the parents of 
                                a dependent student under section 428B; 
                                or
                                    ``(II) a Federal Direct PLUS Loan 
                                made to the parents of a dependent 
                                student.

    ``(c) Program Authorized.--From amounts appropriated under 
subsection (i) for a fiscal year, the Secretary shall carry out a 
program of assuming the obligation to repay a student loan, by direct 
payments on behalf of a borrower to the holder of such loan, in 
accordance with subsection (d), for any borrower who--
            ``(1) is employed as a civil legal assistance attorney; and
            ``(2) is not in default on a loan for which the borrower 
        seeks repayment.

    ``(d) Terms of Agreement.--
            ``(1) In general.--To be eligible to receive repayment 
        benefits under subsection (c), a borrower shall enter into a 
        written agreement with the Secretary that specifies that--
                    ``(A) the borrower will remain employed as a civil 
                legal assistance attorney for a required period of 
                service of not less than three years, unless 
                involuntarily separated from that employment;
                    ``(B) if the borrower is involuntarily separated 
                from employment on account of misconduct, or voluntarily 
                separates from employment, before the end of the period 
                specified in the agreement, the borrower will repay the 
                Secretary the amount of any benefits received by such 
                employee under this agreement;

[[Page 122 STAT. 3244]]

                    ``(C) if the borrower is required to repay an amount 
                to the Secretary under subparagraph (B) and fails to 
                repay such amount, a sum equal to that amount shall be 
                recoverable by the Federal Government from the employee 
                by such methods as are provided by law for the recovery 
                of amounts owed to the Federal Government;
                    ``(D) <<NOTE: Waiver authority.>> the Secretary may 
                waive, in whole or in part, a right of recovery under 
                this subsection if it is shown that recovery would be 
                contrary to the public interest; and
                    ``(E) the Secretary shall make student loan payments 
                under this section for the period of the agreement, 
                subject to the availability of appropriations.
            ``(2) Repayments.--
                    ``(A) In general.--Any amount repaid by, or 
                recovered from, an individual under this subsection 
                shall be credited to the appropriation account from 
                which the amount involved was originally paid.
                    ``(B) Merger.--Any amount credited under 
                subparagraph (A) shall be merged with other sums in such 
                account and shall be available for the same purposes and 
                period, and subject to the same limitations, if any, as 
                the sums with which the amount was merged.
            ``(3) Limitations.--
                    ``(A) Student loan payment amount.--Student loan 
                repayments made by the Secretary under this section 
                shall be made subject to such terms, limitations, or 
                conditions as may be mutually agreed upon by the 
                borrower and the Secretary in an agreement under 
                paragraph (1), except that the amount paid by the 
                Secretary under this section shall not exceed--
                          ``(i) $6,000 for any borrower in any calendar 
                      year; or
                          ``(ii) an aggregate total of $40,000 in the 
                      case of any borrower.
                    ``(B) Beginning of payments.--Nothing in this 
                section shall authorize the Secretary to pay any amount 
                to reimburse a borrower for any repayments made by such 
                borrower prior to the date on which the Secretary 
                entered into an agreement with the borrower under this 
                subsection.

    ``(e) Additional Agreements.--
            ``(1) In general.--On completion of the required period of 
        service under an agreement under subsection (d), the borrower 
        and the Secretary may, subject to paragraph (2), enter into an 
        additional agreement in accordance with subsection (d).
            ``(2) Term.--An agreement entered into under paragraph (1) 
        may require the borrower to remain employed as a civil legal 
        assistance attorney for less than three years.

    ``(f) Award Basis; Priority.--
            ``(1) Award basis.--Subject to paragraph (2), the Secretary 
        shall provide repayment benefits under this section on a first-
        come, first-served basis, and subject to the availability of 
        appropriations.
            ``(2) Priority.--The Secretary shall give priority in 
        providing repayment benefits under this section in any fiscal 
        year to a borrower who--

[[Page 122 STAT. 3245]]

                    ``(A) has practiced law for five years or less and, 
                for not less than 90 percent of the time in such 
                practice, has served as a civil legal assistance 
                attorney;
                    ``(B) received repayment benefits under this section 
                during the preceding fiscal year; and
                    ``(C) has completed less than three years of the 
                first required period of service specified for the 
                borrower in an agreement entered into under subsection 
                (d).

    ``(g) Ineligibility for Double Benefits.--No borrower may, for the 
same service, receive a reduction of loan obligations under both this 
section and section 428K or 455(m).
    ``(h) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out this section.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $10,000,000 for fiscal year 2009 
and such sums as may be necessary for each of the five succeeding fiscal 
years.''.
SEC. 432. REPORTS TO CONSUMER REPORTING AGENCIES AND INSTITUTIONS 
                        OF HIGHER EDUCATION.

    (a) In General.--Section 430A (20 U.S.C. 1080a) is amended--
            (1) in the section heading, by striking ``credit bureaus'' 
        and inserting ``consumer reporting agencies'';
            (2) in subsection (a)--
                    (A) in the matter preceding paragraph (1)--
                          (i) in the first sentence--
                                    (I) by striking ``the Secretary,'' 
                                and inserting ``the Secretary and''; and
                                    (II) by striking ``agreements with 
                                credit bureau organizations'' and 
                                inserting ``an agreement with each 
                                consumer reporting agency'';
                          (ii) in the second sentence--
                                    (I) by striking ``such 
                                organizations'' each place the term 
                                occurs and inserting ``such consumer 
                                reporting agencies''; and
                                    (II) by striking ``insurance), by'' 
                                and inserting ``insurance) or by''; and
                          (iii) in the third sentence--
                                    (I) by striking ``Secretary,'' and 
                                inserting ``Secretary or''; and
                                    (II) by striking ``organizations'' 
                                and inserting ``consumer reporting 
                                agencies'';
                    (B) by redesignating paragraphs (1), (2), and (3) as 
                paragraphs (2), (4), and (5), respectively;
                    (C) by inserting before paragraph (2) (as 
                redesignated by subparagraph (B)), the following:
            ``(1) that the loan is an education loan (as such term is 
        defined in section 151);''; and
                    (D) by inserting after paragraph (2) (as 
                redesignated by subparagraph (B)) the following:
            ``(3) information concerning the repayment status of the 
        loan for inclusion in the file of the borrower, except that 
        nothing in this subsection shall be construed to affect any 
        otherwise applicable provision of the Fair Credit Reporting Act 
        (15 U.S.C. 1681 et seq.);'';
            (3) in subsection (b)--

[[Page 122 STAT. 3246]]

                    (A) by striking ``organizations'' and inserting 
                ``consumer reporting agencies''; and
                    (B) by striking ``subsection (a)(2)'' and inserting 
                ``subsection (a)(4)'';
            (4) in subsection (c)--
                    (A) in paragraph (2), by striking ``organizations'' 
                and inserting ``consumer reporting agencies''; and
                    (B) in paragraph (4)--
                          (i) by striking ``subsection (a)(2)'' and 
                      inserting ``subsection (a)(4)''; and
                          (ii) in subparagraph (A), by striking ``credit 
                      bureau organizations'' and inserting ``consumer 
                      reporting agencies''; and
            (5) in subsection (d), by striking ``credit bureau 
        organization'' and inserting ``consumer reporting agency''.

    (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is 
further amended--
            (1) in section 427(a)(2)(G) (20 U.S.C. 1077(a)(2)(G))--
                    (A) in clause (i), by striking ``credit bureau 
                organizations'' and inserting ``consumer reporting 
                agencies''; and
                    (B) in clause (ii), by striking ``organizations'' 
                and inserting ``consumer reporting agencies'';
            (2) in section 428(c)(3)(A)(iii) (20 U.S.C. 
        1078(c)(3)(A)(iii)), by striking ``credit bureau organization'' 
        and inserting ``consumer reporting agency'';
            (3) in section 428C(b)(4)(E) (20 U.S.C. 1078-3(b)(4)(E))--
                    (A) in clause (i), by striking ``credit bureau 
                organizations'' and inserting ``consumer reporting 
                agencies''; and
                    (B) in clause (ii), by striking ``organizations'' 
                and inserting ``consumer reporting agencies'';
            (4) in section 437(c)(5) (20 U.S.C. 1087(c)(5)), by striking 
        ``credit bureaus'' and inserting ``consumer reporting 
        agencies'';
            (5) in section 463(c) (20 U.S.C. 1087cc(c))--
                    (A) in the subsection heading, by striking ``Credit 
                Bureau Organizations'' and inserting ``Consumer 
                Reporting Agencies'';
                    (B) in paragraph (1), by striking ``credit bureau 
                organizations'' and inserting ``consumer reporting 
                agencies'';
                    (C) in paragraph (2), by striking ``organizations'' 
                and inserting ``consumer reporting agencies'';
                    (D) in paragraph (4)(A), by striking ``credit bureau 
                organization'' each place the term occurs and inserting 
                ``consumer reporting agency''; and
                    (E) in paragraph (5)--
                          (i) by striking ``credit bureau 
                      organizations'' and inserting ``consumer reporting 
                      agencies''; and
                          (ii) by striking ``such organizations'' and 
                      inserting ``such consumer reporting agencies'';
            (6) in section 463A(a)(11) (20 U.S.C. 1087cc-1(a)(11)), by 
        striking ``credit bureau or credit'' and inserting ``consumer''; 
        and
            (7) in section 464 <<NOTE: 20 USC 1087dd.>> (20 U.S.C. 
        10877dd)--
                    (A) in subsection (c)(1)(I), by striking ``credit 
                bureau organizations'' and inserting ``consumer 
                reporting agencies''; and
                    (B) in subsection (h)(1)(A), by striking ``credit 
                bureau organization or credit'' and inserting 
                ``consumer''.

[[Page 122 STAT. 3247]]

SEC. 433. LEGAL POWERS AND RESPONSIBILITIES.

    (a) Settlement of Claims.--Section 432(b) (20 U.S.C. 1082(b)) is 
amended by adding at the end the following: ``The Secretary may not 
enter into any settlement of any claim under this title that exceeds 
$1,000,000 unless--
            ``(1) the Secretary requests a review of the proposed 
        settlement of such claim by the Attorney General; and
            ``(2) the Attorney General responds to such request, which 
        may include, at the Attorney General's discretion, a written 
        opinion related to such proposed settlement.''.

    (b) Common Forms and Formats.--Section 432(m)(1)(D)(i) (20 U.S.C. 
1082(m)(1)(D)(i)) is amended by adding at the end the following: 
``Unless otherwise notified by the Secretary, each institution of higher 
education that participates in the program under this part or part D may 
use a master promissory note for loans under this part and part D.''.
SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

    (a) Amendment.--Section 433 (20 U.S.C. 1083) is amended to read as 
follows:
``SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

    ``(a) Required Disclosure Before Disbursement.--Each eligible 
lender, at or prior to the time such lender disburses a loan that is 
insured or guaranteed under this part (other than a loan made under 
section 428C), shall provide thorough and accurate loan information on 
such loan to the borrower in simple and understandable terms. Any 
disclosure required by this subsection may be made by an eligible lender 
by written or electronic means, including as part of the application 
material provided to the borrower, as part of the promissory note 
evidencing the loan, or on a separate written form provided to the 
borrower. Each lender shall provide to each borrower a telephone number, 
and may provide an electronic address, through which additional loan 
information can be obtained. The disclosure shall include--
            ``(1) a statement prominently and clearly displayed and in 
        bold print that the borrower is receiving a loan that must be 
        repaid;
            ``(2) the name of the eligible lender, and the address to 
        which communications and payments should be sent;
            ``(3) the principal amount of the loan;
            ``(4) the amount of any charges, such as the origination fee 
        and Federal default fee, and whether those fees will be--
                    ``(A) collected by the lender at or prior to the 
                disbursal of the loan;
                    ``(B) deducted from the proceeds of the loan;
                    ``(C) paid separately by the borrower; or
                    ``(D) paid by the lender;
            ``(5) the stated interest rate on the loan;
            ``(6) for loans made under section 428H or to a student 
        borrower under section 428B, an explanation--
                    ``(A) that the borrower has the option to pay the 
                interest that accrues on the loan while the borrower is 
                a student at an institution of higher education; and
                    ``(B) if the borrower does not pay such interest 
                while attending an institution, when and how often 
                interest on the loan will be capitalized;

[[Page 122 STAT. 3248]]

            ``(7) for loans made to a parent borrower on behalf of a 
        student under section 428B, an explanation--
                    ``(A) that the parent has the option to defer 
                payment on the loan while the student is enrolled on at 
                least a half-time basis in an institution of higher 
                education;
                    ``(B) if the parent does not pay the interest on the 
                loan while the student is enrolled in an institution, 
                when and how often interest on the loan will be 
                capitalized; and
                    ``(C) that the parent may be eligible for a 
                deferment on the loan if the parent is enrolled on at 
                least a half-time basis in an institution of higher 
                education;
            ``(8) the yearly and cumulative maximum amounts that may be 
        borrowed;
            ``(9) a statement of the total cumulative balance, including 
        the loan being disbursed, owed by the borrower to that lender, 
        and an estimate of the projected monthly payment, given such 
        cumulative balance;
            ``(10) an explanation of when repayment of the loan will be 
        required and when the borrower will be obligated to pay interest 
        that accrues on the loan;
            ``(11) a description of the types of repayment plans that 
        are available for the loan;
            ``(12) a statement as to the minimum and maximum repayment 
        terms which the lender may impose, and the minimum annual 
        payment required by law;
            ``(13) an explanation of any special options the borrower 
        may have for loan consolidation or other refinancing of the 
        loan;
            ``(14) a statement that the borrower has the right to prepay 
        all or part of the loan, at any time, without penalty;
            ``(15) a statement summarizing circumstances in which 
        repayment of the loan or interest that accrues on the loan may 
        be deferred;
            ``(16) a statement summarizing the circumstances in which a 
        borrower may obtain forbearance on the loan;
            ``(17) a description of the options available for 
        forgiveness of the loan, and the requirements to obtain loan 
        forgiveness;
            ``(18) a definition of default and the consequences to the 
        borrower if the borrower defaults, including a statement that 
        the default will be reported to a consumer reporting agency; and
            ``(19) an explanation of any cost the borrower may incur 
        during repayment or in the collection of the loan, including 
        fees that the borrower may be charged, such as late payment fees 
        and collection costs.

    ``(b) Required Disclosure Before Repayment.--Each eligible lender 
shall, at or prior to the start of the repayment period on a loan made, 
insured, or guaranteed under section 428, 428B, or 428H, disclose to the 
borrower by written or electronic means the information required under 
this subsection in simple and understandable terms. Each eligible lender 
shall provide to each borrower a telephone number, and may provide an 
electronic address, through which additional loan information can be 
obtained. <<NOTE: Deadlines.>> The disclosure required by this 
subsection shall be made not less than 30 days nor more than 150 days 
before the first payment on the loan is due from the borrower. The 
disclosure shall include--

[[Page 122 STAT. 3249]]

            ``(1) the name of the eligible lender or loan servicer, and 
        the address to which communications and payments should be sent;
            ``(2) the scheduled date upon which the repayment period is 
        to begin or the deferment period under section 428B(d)(1) is to 
        end, as applicable;
            ``(3) the estimated balance owed by the borrower on the loan 
        or loans covered by the disclosure (including, if applicable, 
        the estimated amount of interest to be capitalized) as of the 
        scheduled date on which the repayment period is to begin or the 
        deferment period under 428B(d)(1) is to end, as applicable;
            ``(4) the stated interest rate on the loan or loans, or the 
        combined interest rate of loans with different stated interest 
        rates;
            ``(5) information on loan repayment benefits offered for the 
        loan or loans, including--
                    ``(A) whether the lender offers any benefits that 
                are contingent on the repayment behavior of the 
                borrower, such as--
                          ``(i) a reduction in interest rate if the 
                      borrower repays the loan by automatic payroll or 
                      checking account deduction;
                          ``(ii) a reduction in interest rate if the 
                      borrower makes a specified number of on-time 
                      payments; and
                          ``(iii) other loan repayment benefits for 
                      which the borrower could be eligible that would 
                      reduce the amount of repayment or the length of 
                      the repayment period;
                    ``(B) if the lender provides a loan repayment 
                benefit--
                          ``(i) any limitations on such benefit;
                          ``(ii) explicit information on the reasons a 
                      borrower may lose eligibility for such benefit;
                          ``(iii) for a loan repayment benefit that 
                      reduces the borrower's interest rate--
                                    ``(I) examples of the impact the 
                                interest rate reduction would have on 
                                the length of the borrower's repayment 
                                period and the amount of repayment; and
                                    ``(II) upon the request of the 
                                borrower, the effect the reduction in 
                                interest rate would have with respect to 
                                the borrower's payoff amount and time 
                                for repayment; and
                          ``(iv) whether and how the borrower can regain 
                      eligibility for a benefit if a borrower loses a 
                      benefit;
            ``(6) a description of all the repayment plans that are 
        available to the borrower and a statement that the borrower may 
        change from one plan to another during the period of repayment;
            ``(7) the repayment schedule for all loans covered by the 
        disclosure, including--
                    ``(A) the date the first installment is due; and
                    ``(B) the number, amount, and frequency of required 
                payments, which shall be based on a standard repayment 
                plan or, in the case of a borrower who has selected 
                another repayment plan, on the repayment plan selected 
                by the borrower;

[[Page 122 STAT. 3250]]

            ``(8) an explanation of any special options the borrower may 
        have for loan consolidation or other refinancing of the loan and 
        of the availability and terms of such other options;
            ``(9) except as provided in subsection (d)--
                    ``(A) the projected total of interest charges which 
                the borrower will pay on the loan or loans, assuming 
                that the borrower makes payments exactly in accordance 
                with the repayment schedule; and
                    ``(B) if the borrower has already paid interest on 
                the loan or loans, the amount of interest paid;
            ``(10) the nature of any fees which may accrue or be charged 
        to the borrower during the repayment period;
            ``(11) a statement that the borrower has the right to prepay 
        all or part of the loan or loans covered by the disclosure at 
        any time without penalty;
            ``(12) a description of the options by which the borrower 
        may avoid or be removed from default, including any relevant 
        fees associated with such options; and
            ``(13) additional resources, including nonprofit 
        organizations, advocates, and counselors (including the Student 
        Loan Ombudsman of the Department) of which the lender is aware, 
        where borrowers may receive advice and assistance on loan 
        repayment.

    ``(c) Separate Notification.--Each eligible lender shall, at the 
time such lender notifies a borrower of approval of a loan which is 
insured or guaranteed under this part, provide the borrower with a 
separate notification which summarizes, in simple and understandable 
terms, the rights and responsibilities of the borrower with respect to 
the loan, including a statement of the consequences of defaulting on the 
loan and a statement that each borrower who defaults will be reported to 
a consumer reporting agency. The requirement of this subsection shall be 
in addition to the information required by subsection (a) of this 
section.
    ``(d) Special Disclosure Rules on PLUS Loans, and Unsubsidized 
Loans.--Loans made under sections 428B and 428H shall not be subject to 
the disclosure of projected monthly payment amounts required under 
subsection (b)(7) if the lender, in lieu of such disclosure, provides 
the borrower with sample projections of monthly repayment amounts, 
assuming different levels of borrowing and interest accruals resulting 
from capitalization of interest while the borrower, or the student on 
whose behalf the loan is made, is in school, in simple and 
understandable terms. Such sample projections shall disclose the cost to 
the borrower of--
            ``(1) capitalizing the interest; and
            ``(2) paying the interest as the interest accrues.

    ``(e) Required Disclosures During Repayment.--
            ``(1) Pertinent information about a loan provided on a 
        periodic basis.--Each eligible lender shall provide the borrower 
        of a loan made, insured, or guaranteed under this part with a 
        bill or statement (as applicable) that corresponds to each 
        payment installment time period in which a payment is due and 
        that includes, in simple and understandable terms--
                    ``(A) the original principal amount of the 
                borrower's loan;
                    ``(B) the borrower's current balance, as of the time 
                of the bill or statement, as applicable;
                    ``(C) the interest rate on such loan;

[[Page 122 STAT. 3251]]

                    ``(D) the total amount the borrower has paid in 
                interest on the loan;
                    ``(E) the aggregate amount the borrower has paid for 
                the loan, including the amount the borrower has paid in 
                interest, the amount the borrower has paid in fees, and 
                the amount the borrower has paid against the balance;
                    ``(F) a description of each fee the borrower has 
                been charged for the most recently preceding installment 
                time period;
                    ``(G) the date by which the borrower needs to make a 
                payment in order to avoid additional fees and the amount 
                of such payment and the amount of such fees;
                    ``(H) the lender's or loan servicer's address and 
                toll-free phone number for payment and billing error 
                purposes; and
                    ``(I) a reminder that the borrower has the option to 
                change repayment plans, a list of the names of the 
                repayment plans available to the borrower, a link to the 
                appropriate page of the Department's website to obtain a 
                more detailed description of the repayment plans, and 
                directions for the borrower to request a change in 
                repayment plan.
            ``(2) Information provided to a borrower having difficulty 
        making payments.--Each eligible lender shall provide to a 
        borrower who has notified the lender that the borrower is having 
        difficulty making payments on a loan made, insured, or 
        guaranteed under this part with the following information in 
        simple and understandable terms:
                    ``(A) A description of the repayment plans available 
                to the borrower, including how the borrower should 
                request a change in repayment plan.
                    ``(B) A description of the requirements for 
                obtaining forbearance on a loan, including expected 
                costs associated with forbearance.
                    ``(C) A description of the options available to the 
                borrower to avoid defaulting on the loan, and any 
                relevant fees or costs associated with such options.
            ``(3) Required disclosures during delinquency.--Each 
        eligible lender shall provide to a borrower who is 60 days 
        delinquent in making payments on a loan made, insured, or 
        guaranteed under this part with a notice, in simple and 
        understandable terms, of the following:
                    ``(A) The date on which the loan will default if no 
                payment is made.
                    ``(B) The minimum payment the borrower must make to 
                avoid default.
                    ``(C) A description of the options available to the 
                borrower to avoid default, and any relevant fees or 
                costs associated with such options, including a 
                description of deferment and forbearance and the 
                requirements to obtain each.
                    ``(D) Discharge options to which the borrower may be 
                entitled.
                    ``(E) Additional resources, including nonprofit 
                organizations, advocates, and counselors (including the 
                Student Loan Ombudsman of the Department), of which the 
                lender is aware, where the borrower can receive advice 
                and assistance on loan repayment.

[[Page 122 STAT. 3252]]

    ``(f) Cost of Disclosure and Consequences of Nondisclosure.--
            ``(1) No cost to borrowers.--The information required under 
        this section shall be available without cost to the borrower.
            ``(2) Consequences of nondisclosure.--The failure of an 
        eligible lender to provide information as required by this 
        section shall not--
                    ``(A) relieve a borrower of the obligation to repay 
                a loan in accordance with the loan's terms; or
                    ``(B) provide a basis for a claim for civil damages.
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed as subjecting the lender to the Truth in Lending 
        Act with regard to loans made under this part.
            ``(4) Actions by the secretary.--The Secretary may limit, 
        suspend, or terminate the continued participation of an eligible 
        lender in making loans under this part for failure by that 
        lender to comply with this section.''.

    (b) <<NOTE: 20 USC 1083 note.>>  Effective Dates.--
            (1) Regular disclosure requirements and disclosure 
        requirements to borrowers having difficulty making payments.--
        Paragraphs (1) and (2) of section 433(e) of the Higher Education 
        Act of 1965, as amended by subsection (a), shall apply with 
        respect to loans for which the first payment is due on or after 
        July 1, 2009.
            (2) Disclosure requirements for borrowers with delinquent 
        loans.--Section 433(e)(3) of the Higher Education Act of 1965, 
        as amended by subsection (a), shall apply with respect to loans 
        that become delinquent on or after July 1, 2009.
SEC. 435. CONSUMER EDUCATION INFORMATION.

    Part B (20 U.S.C. 1071 et seq.) is amended by inserting after 
section 433 (20 U.S.C. 1083) the following:
``SEC. 433A. <<NOTE: 20 USC 1083a.>> CONSUMER EDUCATION 
                          INFORMATION.

    ``(a) In General.--Each guaranty agency participating in a program 
under this part, working with the institutions of higher education 
served by such guaranty agency, shall develop and make available high-
quality educational programs and materials to provide training for 
students and families in budgeting and financial management, including 
debt management and other aspects of financial literacy, such as the 
cost of using high interest loans to pay for postsecondary education, 
particularly as budgeting and financial management relates to student 
loan programs authorized by this title. Such programs and materials 
shall be in formats that are simple and understandable to students and 
families, and shall be provided before, during, and after the students' 
enrollment in an institution of higher education. The activities 
described in this section shall be considered default reduction 
activities for the purposes of section 422.
    ``(b) Rule of Construction.--Nothing in this section shall be 
construed to prohibit--
            ``(1) a guaranty agency from using existing activities, 
        programs, and materials in meeting the requirements of this 
        section;

[[Page 122 STAT. 3253]]

            ``(2) a guaranty agency from providing programs or materials 
        similar to the programs or materials described in subsection (a) 
        to an institution of higher education that provides loans 
        exclusively through part D; or
            ``(3) a lender or loan servicer from providing outreach or 
        financial aid literacy information in accordance with subsection 
        (a).''.
SEC. 436. DEFINITIONS OF ELIGIBLE INSTITUTION AND ELIGIBLE LENDER.

    (a) Participation Rate Index.--
            (1) Amendments.--Section 435(a) (20 U.S.C. 1085(a)) is 
        amended--
                    (A) in paragraph (2)--
                          (i) in subparagraph (A)(ii), by striking 
                      ``paragraph (4)'' and inserting ``paragraph (5)''; 
                      and
                          (ii) in subparagraph (B)--
                                    (I) by striking ``and'' at the end 
                                of clause (ii); and
                                    (II) by striking clause (iii) and 
                                inserting the following:
                          ``(iii) 25 percent for fiscal year 1994 
                      through fiscal year 2011; and
                          ``(iv) 30 percent for fiscal year 2012 and any 
                      succeeding fiscal year.'';
                    (B) by redesignating paragraph (6) as paragraph (8), 
                and redesignating paragraphs (3) through (5) as 
                paragraphs (4) through (6), respectively;
                    (C) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Appeals for regulatory relief.-- 
        <<NOTE: Deadlines. Notification.>> An institution whose cohort 
        default rate, calculated in accordance with subsection (m), is 
        equal to or greater than the threshold percentage specified in 
        paragraph (2)(B)(iv) for any two consecutive fiscal years may, 
        not later than 30 days after the date the institution receives 
        notification from the Secretary, file an appeal demonstrating 
        exceptional mitigating circumstances, as defined in paragraph 
        (5). The Secretary shall issue a decision on any such appeal not 
        later than 45 days after the date of submission of the appeal. 
        If the Secretary determines that the institution demonstrates 
        exceptional mitigating circumstances, the Secretary may not 
        subject the institution to provisional certification based 
        solely on the institution's cohort default rate.'';
                    (D) in paragraph (5)(A) (as redesignated by 
                subparagraph (B)), by striking ``For purposes of 
                paragraph (2)(A)(ii)'' and all that follows through 
                ``following criteria:'' and inserting ``For purposes of 
                this subsection, an institution of higher education 
                shall be treated as having exceptional mitigating 
                circumstances that make application of paragraph (2) 
                inequitable, and that provide for regulatory relief 
                under paragraph (3), if such institution, in the opinion 
                of an independent auditor, meets the following 
                criteria:'';
                    (E) by inserting after paragraph (6) (as 
                redesignated by subparagraph (B)) the following:
            ``(7) Default prevention and assessment of eligibility based 
        on high default rates.--
                    ``(A) First year.--

[[Page 122 STAT. 3254]]

                          ``(i) In general.-- <<NOTE: Plans.>> An 
                      institution whose cohort default rate is equal to 
                      or greater than the threshold percentage specified 
                      in paragraph (2)(B)(iv) in any fiscal year shall 
                      establish a default prevention task force to 
                      prepare a plan to--
                                    ``(I) identify the factors causing 
                                the institution's cohort default rate to 
                                exceed such threshold;
                                    ``(II) establish measurable 
                                objectives and the steps to be taken to 
                                improve the institution's cohort default 
                                rate; and
                                    ``(III) specify actions that the 
                                institution can take to improve student 
                                loan repayment, including appropriate 
                                counseling regarding loan repayment 
                                options.
                          ``(ii) Technical assistance.--Each institution 
                      subject to this subparagraph shall submit the plan 
                      under clause (i) to the Secretary, who shall 
                      review the plan and offer technical assistance to 
                      the institution to promote improved student loan 
                      repayment.
                    ``(B) Second consecutive year.--
                          ``(i) In general.--An institution whose cohort 
                      default rate is equal to or greater than the 
                      threshold percentage specified in paragraph 
                      (2)(B)(iv) for two consecutive fiscal years, shall 
                      require the institution's default prevention task 
                      force established under subparagraph (A) to review 
                      and revise the plan required under such 
                      subparagraph, and shall submit such revised plan 
                      to the Secretary.
                          ``(ii) Review by the secretary.--The Secretary 
                      shall review each revised plan submitted in 
                      accordance with this subparagraph, and may direct 
                      that such plan be amended to include actions, with 
                      measurable objectives, that the Secretary 
                      determines, based on available data and analyses 
                      of student loan defaults, will promote student 
                      loan repayment.''; and
                    (F) in paragraph (8)(A) (as redesignated by 
                subparagraph (B)) by striking ``0.0375'' and inserting 
                ``0.0625''.
            (2) <<NOTE: 20 USC 1085 note.>>  Effective date.--The 
        amendment made by paragraph (1)(F) shall take effect for fiscal 
        years beginning on or after October 1, 2011.

    (b) Types of Lenders.--Section 435(d)(1)(A)(ii) (20 U.S.C. 
1085(d)(1)(A)(ii)) is amended--
            (1) by striking ``part, or (III)'' and inserting ``part, 
        (III)''; and
            (2) by inserting before the semicolon at the end the 
        following: ``, or (IV) it is a National or State chartered bank, 
        or a credit union, with assets of less than $1,000,000,000''.

    (c) Disqualification.--Paragraph (5) of section 435(d) (20 U.S.C. 
1085(d)(5)) is amended to read as follows:
            ``(5) Disqualification for use of certain incentives.--The 
        term `eligible lender' does not include any lender that the 
        Secretary determines, after notice and opportunity for a 
        hearing, has--
                    ``(A) offered, directly or indirectly, points, 
                premiums, payments (including payments for referrals and 
                for processing or finder fees), prizes, stock or other 
                securities, travel, entertainment expenses, tuition 
                payment or

[[Page 122 STAT. 3255]]

                reimbursement, the provision of information technology 
                equipment at below-market value, additional financial 
                aid funds, or other inducements, to any institution of 
                higher education or any employee of an institution of 
                higher education in order to secure applicants for loans 
                under this part;
                    ``(B) conducted unsolicited mailings, by postal or 
                electronic means, of student loan application forms to 
                students enrolled in secondary schools or postsecondary 
                institutions, or to family members of such students, 
                except that applications may be mailed, by postal or 
                electronic means, to students or borrowers who have 
                previously received loans under this part from such 
                lender;
                    ``(C) entered into any type of consulting 
                arrangement, or other contract to provide services to a 
                lender, with an employee who is employed in the 
                financial aid office of an institution of higher 
                education, or who otherwise has responsibilities with 
                respect to student loans or other financial aid of the 
                institution;
                    ``(D) compensated an employee who is employed in the 
                financial aid office of an institution of higher 
                education, or who otherwise has responsibilities with 
                respect to student loans or other financial aid of the 
                institution, and who is serving on an advisory board, 
                commission, or group established by a lender or group of 
                lenders for providing such service, except that the 
                eligible lender may reimburse such employee for 
                reasonable expenses incurred in providing such service;
                    ``(E) performed for an institution of higher 
                education any function that such institution of higher 
                education is required to perform under this title, 
                except that a lender shall be permitted to perform 
                functions on behalf of such institution in accordance 
                with section 485(b);
                    ``(F) paid, on behalf of an institution of higher 
                education, another person to perform any function that 
                such institution of higher education is required to 
                perform under this title, except that a lender shall be 
                permitted to perform functions on behalf of such 
                institution in accordance with section 485(b);
                    ``(G) provided payments or other benefits to a 
                student at an institution of higher education to act as 
                the lender's representative to secure applications under 
                this title from individual prospective borrowers, unless 
                such student--
                          ``(i) is also employed by the lender for other 
                      purposes; and
                          ``(ii) made all appropriate disclosures 
                      regarding such employment;
                    ``(H) offered, directly or indirectly, loans under 
                this part as an inducement to a prospective borrower to 
                purchase a policy of insurance or other product; or
                    ``(I) engaged in fraudulent or misleading 
                advertising.
        It shall not be a violation of this paragraph for a lender to 
        provide technical assistance to institutions of higher education 
        comparable to the kinds of technical assistance provided to 
        institutions of higher education by the Department.''.

[[Page 122 STAT. 3256]]

    (d) School as Lender Program Audit.--Section 435(d) (20 U.S.C. 
1085(d)) is further amended by adding at the end the following:
            ``(8) School as lender program audit.-- 
        <<NOTE: Deadline.>> Each institution serving as an eligible 
        lender under paragraph (1)(E), and each eligible lender serving 
        as a trustee for an institution of higher education or an 
        organization affiliated with an institution of higher education, 
        shall annually complete and submit to the Secretary a compliance 
        audit to determine whether--
                    ``(A) the institution or lender is using all 
                proceeds from special allowance payments and interest 
                payments from borrowers, interest subsidies received 
                from the Department, and any proceeds from the sale or 
                other disposition of loans, for need-based grant 
                programs, in accordance with paragraph (2)(A)(viii);
                    ``(B) the institution or lender is using not more 
                than a reasonable portion of the proceeds described in 
                paragraph (2)(A)(viii) for direct administrative 
                expenses; and
                    ``(C) the institution or lender is ensuring that the 
                proceeds described in paragraph (2)(A)(viii) are being 
                used to supplement, and not to supplant, Federal and 
                non-Federal funds that would otherwise be used for need-
                based grant programs.''.

    (e) Cohort Default Rates.--
            (1) Amendments.--Section 435(m) (20 U.S.C. 1085(m)) is 
        amended--
                    (A) in paragraph (1)--
                          (i) in the first sentence of subparagraph (A), 
                      by striking ``end of the following fiscal year'' 
                      and inserting ``end of the second fiscal year 
                      following the fiscal year in which the students 
                      entered repayment'';
                          (ii) in subparagraph (B), by striking ``such 
                      fiscal year'' and inserting ``such second fiscal 
                      year'';
                          (iii) in subparagraph (C), by striking ``end 
                      of the fiscal year immediately following the year 
                      in which they entered repayment'' and inserting 
                      ``end of the second fiscal year following the year 
                      in which they entered repayment'';
                    (B) in paragraph (2)(C)--
                          (i) by striking ``end of such following fiscal 
                      year is not considered as in default for the 
                      purposes of this subsection'' and inserting ``end 
                      of the second fiscal year following the year in 
                      which the loan entered repayment is not considered 
                      as in default for purposes of this subsection''; 
                      and
                          (ii) by striking ``such following fiscal 
                      year'' and inserting ``such second fiscal year''; 
                      and
                    (C) in paragraph (4)--
                          (i) by amending the paragraph heading to read 
                      as follows: ``Collection and reporting of cohort 
                      default rates and life of cohort default rates.--
                      ''; and
                          (ii) by amending subparagraph (A) to read as 
                      follows:
            ``(A) <<NOTE: Publications. Deadline. Reports.>> The 
        Secretary shall publish not less often than once every fiscal 
        year a report showing cohort default data and life of cohort 
        default rates for each category of institution,

[[Page 122 STAT. 3257]]

        including: (i) four-year public institutions; (ii) four-year 
        private nonprofit institutions; (iii) two-year public 
        institutions; (iv) two-year private nonprofit institutions; (v) 
        four-year proprietary institutions; (vi) two-year proprietary 
        institutions; and (vii) less than two-year proprietary 
        institutions. <<NOTE: Publication.>> For purposes of this 
        subparagraph, for any fiscal year in which one or more current 
        and former students at an institution enter repayment on loans 
        under section 428, 428B, or 428H, received for attendance at the 
        institution, the Secretary shall publish the percentage of those 
        current and former students who enter repayment on such loans 
        (or on the portion of a loan made under section 428C that is 
        used to repay any such loans) received for attendance at the 
        institution in that fiscal year who default before the end of 
        each succeeding fiscal year.''.
            (2) <<NOTE: 20 USC 1085 note.>>  Effective date and 
        transition.--
                    (A) Effective date.--The amendments made by 
                paragraph (1) shall take effect for purposes of 
                calculating cohort default rates for fiscal year 2009 
                and succeeding fiscal years.
                    (B) Transition.--Notwithstanding subparagraph (A), 
                the method of calculating cohort default rates under 
                section 435(m) of the Higher Education Act of 1965 as in 
                effect on the day before the date of enactment of this 
                Act shall continue in effect, and the rates so 
                calculated shall be the basis for any sanctions imposed 
                on institutions of higher education because of their 
                cohort default rates, until three consecutive years of 
                cohort default rates calculated in accordance with the 
                amendments made by paragraph (1) are available.
SEC. 437. DISCHARGE AND CANCELLATION RIGHTS IN CASES OF 
                        DISABILITY.

    (a) FFEL and Direct Loans.--Section 437(a) (20 U.S.C. 1087(a)) is 
amended--
            (1) by striking ``(a) Repayment in Full for Death and 
        Disability.--If a'' and inserting the following:

    ``(a) Repayment in Full for Death and Disability.--
            ``(1) In general.--If a'';
            (2) by inserting ``, or if a student borrower who has 
        received such a loan is unable to engage in any substantial 
        gainful activity by reason of any medically determinable 
        physical or mental impairment that can be expected to result in 
        death, has lasted for a continuous period of not less than 60 
        months, or can be expected to last for a continuous period of 
        not less than 60 months'' after ``of the Secretary),''; and
            (3) by adding at the end the following: ``The Secretary may 
        develop such safeguards as the Secretary determines necessary to 
        prevent fraud and abuse in the discharge of liability under this 
        subsection. Notwithstanding any other provision of this 
        subsection, the Secretary may promulgate regulations to 
        reinstate the obligation of, and resume collection on, loans 
        discharged under this subsection in any case in which--
                    ``(A) a borrower received a discharge of liability 
                under this subsection and after the discharge the 
                borrower--
                          ``(i) receives a loan made, insured, or 
                      guaranteed under this title; or

[[Page 122 STAT. 3258]]

                          ``(ii) has earned income in excess of the 
                      poverty line; or
                    ``(B) the Secretary determines necessary.''.

    (b) Disability Determinations.--Section 437(a) (20 U.S.C. 1087(a)) 
is further amended by adding at the end the following:
            ``(2) Disability determinations.--A borrower who has been 
        determined by the Secretary of Veterans Affairs to be 
        unemployable due to a service-connected condition and who 
        provides documentation of such determination to the Secretary of 
        Education, shall be considered permanently and totally disabled 
        for the purpose of discharging such borrower's loans under this 
        subsection, and such borrower shall not be required to present 
        additional documentation for purposes of this subsection.''.

    (c) <<NOTE: 20 USC 1087 note.>>  Effective Date.--The amendments 
made by subsection (a) shall take effect on July 1, 2010.
SEC. 438. CONFORMING AMENDMENTS FOR REPEAL OF SECTION 439.

    (a) Part B Amendments.--Part B of title IV (20 U.S.C. 1071 et seq.) 
is amended--
            (1) in section 422A(d)(1) (20 U.S.C. 1072a(d)(1)), by 
        striking ``437, and 439(q)'' and inserting ``and 437'';
            (2) in section 428 (20 U.S.C. 1078)--
                    (A) in subsection (b)(1)(G)(i), by striking ``or 
                439(q)'';
                    (B) by striking subsection (h); and
                    (C) in subsection (j)(2)--
                          (i) by inserting ``and'' at the end of 
                      subparagraph (C);
                          (ii) by striking ``; and'' at the end of 
                      subparagraph (D) and inserting a period; and
                          (iii) by striking subparagraph (E); and
            (3) in section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)), by 
        striking ``428C, and 439(q),'' and inserting ``and 428C,''.

    (b) Federal Deposit Insurance Act.--Section 18(s)(4)(C)(ii)(I) of 
the Federal Deposit Insurance Act (12 U.S.C. 1828(s)(4)(C)(ii)(I)) is 
amended by striking ``as amended'' and inserting ``as such section 
existed on the day before the date of the repeal of such section''.

                   PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

    Section 441 (42 U.S.C. 2751) is amended--
            (1) in subsection (b), by striking ``$1,000,000,000 for 
        fiscal year 1999'' and all that follows through the period and 
        inserting ``such sums as may be necessary for fiscal year 2009 
        and each of the five succeeding fiscal years.''; and
            (2) in subsection (c)(1), by inserting ``emergency 
        preparedness and response,'' after ``public safety,''.
SEC. 442. ALLOWANCE FOR BOOKS AND SUPPLIES.

    Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by 
striking ``$450'' and inserting ``$600''.
SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

    Section 443 (42 U.S.C. 2753) is amended--
            (1) in subsection (b)(2)--
                    (A) by striking subparagraph (A); and

[[Page 122 STAT. 3259]]

                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively; and
            (2) by adding at the end the following new subsection:

    ``(e) Civic Education and Participation Activities.--
            ``(1) Use of funds.--Funds granted to an institution under 
        this section may be used in accordance with such subsection to 
        compensate (including compensation for time spent in training 
        and travel directly related to civic education and participation 
        activities) students employed in projects that--
                    ``(A) teach civics in schools;
                    ``(B) raise awareness of government functions or 
                resources; or
                    ``(C) increase civic participation.
            ``(2) Priority for schools.--To the extent practicable, an 
        institution shall--
                    ``(A) give priority to the employment of students 
                participating in projects that educate or train the 
                public about evacuation, emergency response, and injury 
                prevention strategies relating to natural disasters, 
                acts of terrorism, and other emergency situations; and
                    ``(B) ensure that any student compensated with the 
                funds described in paragraph (1) receives appropriate 
                training to carry out the educational services required.
            ``(3) Federal share.--The Federal share of the compensation 
        of work-study students compensated under this subsection may 
        exceed 75 percent.''.
SEC. 444. FLEXIBLE USE OF FUNDS.

    Section 445 (42 U.S.C. 2755) is amended by adding at the end the 
following new subsection:
    ``(d) Flexibility in the Event of a Major Disaster.--
            ``(1) In general.--In the event of a major disaster, an 
        eligible institution located in any area affected by such major 
        disaster, as determined by the Secretary, may make payments 
        under this part to disaster-affected students, for the period of 
        time (not to exceed one academic year) in which the disaster-
        affected students were prevented from fulfilling the students' 
        work-study obligations as described in paragraph (2)(A)(iii), as 
        follows:
                    ``(A) Payments may be made under this part to 
                disaster-affected students in an amount equal to or less 
                than the amount of wages such students would have been 
                paid under this part had the students been able to 
                complete the work obligation necessary to receive work 
                study funds.
                    ``(B) Payments shall not be made to any student who 
                was not eligible for work study or was not completing 
                the work obligation necessary to receive work study 
                funds under this part prior to the occurrence of the 
                major disaster.
                    ``(C) Any payments made to disaster-affected 
                students under this subsection shall meet the matching 
                requirements of section 443, unless such matching 
                requirements are waived by the Secretary.
            ``(2) Definitions.--In this subsection:
                    ``(A) The term `disaster-affected student' means a 
                student enrolled at an eligible institution who--

[[Page 122 STAT. 3260]]

                          ``(i) received a work-study award under this 
                      section for the academic year during which a major 
                      disaster occurred;
                          ``(ii) earned Federal work-study wages from 
                      such eligible institution for such academic year;
                          ``(iii) was prevented from fulfilling the 
                      student's work-study obligation for all or part of 
                      such academic year due to such major disaster; and
                          ``(iv) was unable to be reassigned to another 
                      work-study job.
                    ``(B) The term `major disaster' has the meaning 
                given such term in section 102(2) of the Robert T. 
                Stafford Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5122(2)).''.
SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS.

    Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended by striking 
``$50,000'' and inserting ``$75,000''.
SEC. 446. ADDITIONAL FUNDS FOR OFF-CAMPUS COMMUNITY SERVICE.

    Section 447 (42 U.S.C. 2756a) is amended--
            (1) by striking ``Each institution participating'' and 
        inserting ``(a) Community Service-Learning.--Each institution 
        participating''; and
            (2) by adding at the end the following new subsection:

    ``(b) Off-Campus Community Service.--
            ``(1) Grants authorized.--In addition to funds made 
        available under section 443(b)(2)(A), the Secretary is 
        authorized to award grants to institutions participating under 
        this part to supplement off-campus community service employment.
            ``(2) Use of funds.--An institution shall ensure that funds 
        granted to such institution under this subsection are used in 
        accordance with section 443(b)(2)(A) to recruit and compensate 
        students (including compensation for time spent in training and 
        for travel directly related to such community service).
            ``(3) Priority.--In awarding grants under this subsection, 
        the Secretary shall give priority to applications that support 
        postsecondary students assisting with early childhood education 
        activities and activities in preparation for emergencies and 
        natural disasters.
            ``(4) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection such sums as may 
        be necessary for fiscal year 2009 and each of the five 
        succeeding fiscal years.''.
SEC. 447. WORK COLLEGES.

    Section 448 (42 U.S.C. 2756b) is amended--
            (1) by striking ``work-learning'' each place it appears and 
        inserting ``work-learning-service'';
            (2) by striking subsection (e) and inserting the following:

    ``(e) Definitions.--For the purpose of this section--
            ``(1) the term `work college' means an eligible institution 
        that--
                    ``(A) has been a public or private nonprofit, four-
                year, degree-granting institution with a commitment to 
                community service;

[[Page 122 STAT. 3261]]

                    ``(B) has operated a comprehensive work-learning-
                service program for at least two years;
                    ``(C) requires students, including at least one-half 
                of all students who are enrolled on a full-time basis, 
                to participate in a comprehensive work-learning-service 
                program for at least five hours each week, or at least 
                80 hours during each period of enrollment, except summer 
                school, unless the student is engaged in an 
                institutionally organized or approved study abroad or 
                externship program; and
                    ``(D) provides students participating in the 
                comprehensive work-learning-service program with the 
                opportunity to contribute to their education and to the 
                welfare of the community as a whole; and
            ``(2) the term `comprehensive student work-learning-service 
        program' means a student work-learning-service program that--
                    ``(A) is an integral and stated part of the 
                institution's educational philosophy and program;
                    ``(B) requires participation of all resident 
                students for enrollment and graduation;
                    ``(C) includes learning objectives, evaluation, and 
                a record of work performance as part of the student's 
                college record;
                    ``(D) provides programmatic leadership by college 
                personnel at levels comparable to traditional academic 
                programs;
                    ``(E) recognizes the educational role of work-
                learning-service supervisors; and
                    ``(F) includes consequences for nonperformance or 
                failure in the work-learning-service program similar to 
                the consequences for failure in the regular academic 
                program.''; and
            (3) in subsection (f), by striking ``$5,000,000'' and all 
        that follows through the period and inserting ``such sums as may 
        be necessary for fiscal year 2009 and each of the five 
        succeeding fiscal years.''.

                   PART D--FEDERAL DIRECT STUDENT LOAN

SEC. 451. TERMS AND CONDITIONS OF LOANS.

    (a) Income-Based Repayment.--Section 455(d)(1) (20 U.S.C. 
1087e(d)(1)) is amended--
            (1) in subparagraph (C), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) <<NOTE: Effective date.>> beginning on July 1, 
                2009, an income-based repayment plan that enables 
                borrowers who have a partial financial hardship to make 
                a lower monthly payment in accordance with section 493C, 
                except that the plan described in this subparagraph 
                shall not be available to the borrower of a Federal 
                Direct PLUS Loan made on behalf of a dependent student 
                or a Federal Direct Consolidation Loan, if the proceeds 
                of such loan were used to discharge the liability on 
                such Federal Direct PLUS Loan or a loan

[[Page 122 STAT. 3262]]

                under section 428B made on behalf of a dependent 
                student.''.

    (b) Public Service Job Definition.--
            (1) In general.--Section 455(m)(3)(B) (20 U.S.C. 
        1087e(m)(3)(B)) is amended to read as follows:
                    ``(B) Public service job.--The term `public service 
                job' means--
                          ``(i) a full-time job in emergency management, 
                      government (excluding time served as a member of 
                      Congress), military service, public safety, law 
                      enforcement, public health (including nurses, 
                      nurse practitioners, nurses in a clinical setting, 
                      and full-time professionals engaged in health care 
                      practitioner occupations and health care support 
                      occupations, as such terms are defined by the 
                      Bureau of Labor Statistics), public education, 
                      social work in a public child or family service 
                      agency, public interest law services (including 
                      prosecution or public defense or legal advocacy on 
                      behalf of low-income communities at a nonprofit 
                      organization), early childhood education 
                      (including licensed or regulated childcare, Head 
                      Start, and State funded prekindergarten), public 
                      service for individuals with disabilities, public 
                      service for the elderly, public library sciences, 
                      school-based library sciences and other school-
                      based services, or at an organization that is 
                      described in section 501(c)(3) of the Internal 
                      Revenue Code of 1986 and exempt from taxation 
                      under section 501(a) of such Code; or
                          ``(ii) teaching as a full-time faculty member 
                      at a Tribal College or University as defined in 
                      section 316(b) and other faculty teaching in high-
                      needs subject areas or areas of shortage 
                      (including nurse faculty, foreign language 
                      faculty, and part-time faculty at community 
                      colleges), as determined by the Secretary.''.
            (2) Ineligibility for double benefits.--Section 455(m) (20 
        U.S.C. 1087e(m)) is further amended by adding at the end the 
        following:
            ``(4) Ineligibility for double benefits.--No borrower may, 
        for the same service, receive a reduction of loan obligations 
        under both this subsection and section 428J, 428K, 428L, or 
        460.''.

    (c) Identity Fraud Protection.--Section 455 (as amended by this 
section) (20 U.S.C. 1087e) is amended by adding at the end the 
following:
    ``(n) Identity Fraud Protection.--The Secretary shall take such 
steps as may be necessary to ensure that monthly Federal Direct Loan 
statements and other publications of the Department do not contain more 
than four digits of the Social Security number of any individual.''.
    (d) No Accrual of Interest for Active Duty Service Members.--Section 
455 (as amended by this section) (20 U.S.C. 1087e) is further amended by 
adding at the end the following:
    ``(o) No Accrual of Interest for Active Duty Service Members.--
            ``(1) In general.--Notwithstanding any other provision of 
        this part and in accordance with paragraphs (2) and (4), 
        interest shall not accrue for an eligible military borrower on a 
        loan

[[Page 122 STAT. 3263]]

        made under this part for which the first disbursement is made on 
        or after October 1, 2008.
            ``(2) Consolidation loans.--In the case of any consolidation 
        loan made under this part that is disbursed on or after October 
        1, 2008, interest shall not accrue pursuant to this subsection 
        only on such portion of such loan as was used to repay a loan 
        made under this part for which the first disbursement is made on 
        or after October 1, 2008.
            ``(3) Eligible military borrower.--In this subsection, the 
        term `eligible military borrower' means an individual who--
                    ``(A)(i) is serving on active duty during a war or 
                other military operation or national emergency; or
                    ``(ii) is performing qualifying National Guard duty 
                during a war or other military operation or national 
                emergency; and
                    ``(B) is serving in an area of hostilities in which 
                service qualifies for special pay under section 310 of 
                title 37, United States Code.
            ``(4) Limitation.--An individual who qualifies as an 
        eligible military borrower under this subsection may receive the 
        benefit of this subsection for not more than 60 months.''.

    (e) Disclosures.--Section 455 (as amended by this section) (20 
U.S.C. 1087e) is further amended by adding at the end the following:
    ``(p) Disclosures.-- <<NOTE: Regulations.>> Each institution of 
higher education with which the Secretary has an agreement under section 
453, and each contractor with which the Secretary has a contract under 
section 456, shall, with respect to loans under this part and in 
accordance with such regulations as the Secretary shall prescribe, 
comply with each of the requirements under section 433 that apply to a 
lender with respect to a loan under part B.''.
SEC. 452. FUNDS FOR ADMINISTRATIVE EXPENSES.

    Section 458(a) (20 U.S.C. 1087h(a)) is amended--
            (1) in paragraph (2)--
                    (A) in the heading of such paragraph, by striking 
                ``2011'' and inserting ``2014''; and
                    (B) by striking ``2011'' and inserting ``2014''; and
            (2) in paragraph (3), by striking ``2011'' and inserting 
        ``2014''.
SEC. 453. GUARANTY AGENCY RESPONSIBILITIES AND PAYMENTS; REPORTS 
                        AND COST ESTIMATES.

    Section 459A of the Higher Education Act of 1965 (20 U.S.C. 1087i-1) 
is amended--
            (1) by redesignating subsection (d) as subsection (f); and
            (2) by inserting after subsection (c) the following:

    ``(d) Guaranty Agency Responsibilities and Payments.--
Notwithstanding any other provision of this Act, beginning on the date 
on which the Secretary purchases a loan under this section--
            ``(1) the guaranty agency that insured such loan shall cease 
        to have any obligations, responsibilities, or rights (including 
        rights to any payment) under this Act for any activity related 
        to the administration of such loan that is carried out or 
        required to be carried out on or after the date of such 
        purchase; and
            ``(2) the insurance issued by such agency pursuant to 
        section 428(b) for such loan shall cease to be effective with 
        respect

[[Page 122 STAT. 3264]]

        to any default on such loan that occurs on or after the date of 
        such purchase.

    ``(e) Reports and Cost Estimates.-- <<NOTE: Public 
information.>> The Secretary shall prepare, transmit to the authorizing 
committees, and make available to the public, the following:
            ``(1) Quarterly reports.--
                    ``(A) Contents.--Not later than 60 days after the 
                end of each quarter during the period beginning July 1, 
                2008, and ending September 30, 2009, a quarterly report 
                on--
                          ``(i) the number of loans the Secretary has 
                      agreed to purchase, or has purchased, using the 
                      authority provided under this section, and the 
                      total amount of outstanding principal and accrued 
                      interest of such loans, during such period; and
                          ``(ii) the number of loans in which the 
                      Secretary has purchased a participation interest, 
                      and the total amount of outstanding principal and 
                      accrued interest of such loans, during such 
                      period.
                    ``(B) Disaggregated information.--For each quarterly 
                report, the information described in clauses (i) and 
                (ii) of subparagraph (A) shall be disaggregated by 
                lender and, for each lender, by category of institution 
                (using the categories described in section 132(d)) and 
                type of loan.
            ``(2) Estimates of purchase program costs.--Not later than 
        February 15, 2010, an estimate of the costs associated with the 
        program of purchasing loans described in paragraph (1)(A)(i) 
        during the period beginning July 1, 2008, and ending September 
        30, 2009, and an estimate of the costs associated with the 
        program of purchasing a participation interest in loans 
        described in paragraph (1)(A)(ii) during such period. Each such 
        estimate shall--
                    ``(A) contain the same level of detail, and be 
                reported in a similar manner, as the budget estimates 
                provided for the loan program under part B and the 
                direct student loan program under this part in the 
                President's annual budget submission to Congress, except 
                that current and future administrative costs shall also 
                be reported;
                    ``(B) include an estimate of the gross and net 
                outlays that have been, or will be, incurred by the 
                Federal Government (including subsidy and administrative 
                costs, and any payments made by the Department to 
                lenders, trusts, or other entities related to such 
                activities) in purchasing such loans or purchasing a 
                participation interest in such loans during such period 
                (as applicable); and
                    ``(C) include a comparison of--
                          ``(i) the average amount of the gross and net 
                      outlays (including costs and payments) described 
                      in subparagraph (B) for each $100 of loans 
                      purchased or for which a participation interest 
                      was purchased (as applicable) during such period, 
                      disaggregated by type of loan; with
                          ``(ii) the average amount of such gross and 
                      net outlays (including costs and payments) to the 
                      Federal Government for each $100 of comparable 
                      loans made under this part and part B during such 
                      period, disaggregated by part and by type of loan.

[[Page 122 STAT. 3265]]

            ``(3) Annual cost estimates.-- <<NOTE: Deadline.>> Not later 
        than February 15 of the fiscal year following each of the fiscal 
        years 2008, 2009, and 2010, an annual estimate of the costs 
        associated with the program of purchasing loans described in 
        paragraph (1)(A)(i), and an annual estimate of the costs 
        associated with the program of purchasing a participation 
        interest in loans described in paragraph (1)(A)(ii), that 
        includes the information described in paragraph (2) for such 
        fiscal year.''.
SEC. 454. LOAN CANCELLATION FOR TEACHERS.

    (a) In General.--Section 460 (20 U.S.C. 1087j) is amended--
            (1) in subsection (b)(1)(A)(i)--
                    (A) by inserting ``or location'' after ``a school''; 
                and
                    (B) by inserting ``or locations'' after ``schools''; 
                and
            (2) in subsection (c)(3)(B)(iii), by inserting ``or, in the 
        case of a teacher who is employed by an educational service 
        agency, as certified by the chief administrative officer of such 
        agency,'' after ``borrower is employed,''.

    (b) Prevention of Double Benefits.--Section 460(g)(2) (20 U.S.C. 
1087j(g)(2)) is amended to read as follows:
            ``(2) Prevention of double benefits.--No borrower may, for 
        the same voluntary service, receive a benefit under both this 
        section and--
                    ``(A) section 428J;
                    ``(B) section 428K;
                    ``(C) section 455(m); or
                    ``(D) subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12571 et 
                seq.).''.

    (c) Technical Amendments.--Section 460(b) (as amended by subsection 
(a)(1)) (20 U.S.C. 1087j(b)) is further amended--
            (1) by striking paragraph (2);
            (2) by striking ``Program Authorized.--'' and all that 
        follows through ``The Secretary shall'' and inserting ``Program 
        Authorized.--The Secretary shall'';
            (3) by redesignating subparagraph (B) as paragraph (2), and 
        adjusting the margin accordingly; and
            (4) by redesignating subparagraph (A) as paragraph (1), by 
        redesignating clauses (i) and (ii) of such paragraph (as so 
        redesignated) as subparagraphs (A) and (B), respectively, and by 
        adjusting the margins accordingly.

    (d) Conforming Amendments.--Section 460 (20 U.S.C. 1087j) is further 
amended--
            (1) in subsection (c)(1), by striking ``(b)(1)(A)'' and 
        inserting ``(b)(1)'';
            (2) in subsection (c)(3)--
                    (A) in subparagraph (A)(i), by striking ``(b)(1)'' 
                and inserting ``(b)''; and
                    (B) in subparagraph (B)(i), by striking ``(b)(1)'' 
                and inserting ``(b)''; and
            (3) in subsection (g)(3), by striking ``(b)(1)(A)(ii)'' and 
        inserting ``(b)(1)(B)''.

                      PART E--FEDERAL PERKINS LOANS

SEC. 461. EXTENSION OF AUTHORITY.

    Section 461(b) (20 U.S.C. 1087aa(b)) is amended--

[[Page 122 STAT. 3266]]

            (1) in paragraph (1), by striking ``$250,000,000 for fiscal 
        year 1999'' and all that follows through the period and 
        inserting ``$300,000,000 for fiscal year 2009 and for each of 
        the five succeeding fiscal years.''; and
            (2) in paragraph (2), by striking ``2003'' each place it 
        appears and inserting ``2015''.
SEC. 462. ALLOWANCE FOR BOOKS AND SUPPLIES.

    Section 462(c)(4)(D) (20 U.S.C. 1087bb(c)(4)(D)) is amended by 
striking ``$450'' and inserting ``$600''.
SEC. 463. AGREEMENTS WITH INSTITUTIONS.

    (a) Transfers for Collection.--Section 463(a)(4)(B) (20 U.S.C. 
1087cc(a)(4)(B)) is amended to read as follows:
                    ``(B) if the institution is not one described in 
                subparagraph (A), the Secretary may allow such 
                institution to refer such note or agreement to the 
                Secretary, without recompense, except that, once every 
                six months, any sums collected on such a loan (less an 
                amount not to exceed 30 percent of any such sums 
                collected to cover the Secretary's collection costs) 
                shall be repaid to such institution and treated as an 
                additional capital contribution under section 462;''.

    (b) Revise Authority To Prescribe Additional Fiscal Controls.--
Section 463(a)(9) (20 U.S.C. 1087cc(a)(9)) is amended by inserting ``, 
except that nothing in this paragraph shall be construed to permit the 
Secretary to require the assignment of loans to the Secretary other than 
as is provided for in paragraphs (4) and (5)'' before the period.
SEC. 464. PERKINS LOAN TERMS AND CONDITIONS.

    (a) Loan Limits.--Section 464(a) (20 U.S.C. 1087dd(a)) is amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``$4,000'' in clause (i) and 
                inserting ``$5,500''; and
                    (B) by striking ``$6,000'' in clause (ii) and 
                inserting ``$8,000''; and
            (2) in paragraph (2)(B)--
                    (A) by striking ``$40,000'' in clause (i) and 
                inserting ``$60,000'';
                    (B) by striking ``$20,000'' in clause (ii) and 
                inserting ``$27,500''; and
                    (C) by striking ``$8,000'' in clause (iii) and 
                inserting ``$11,000''.

    (b) Discharge and Cancellation Rights in Cases of Disability.--
            (1) Amendment.--Section 464 (20 U.S.C. 1087dd(c)) is further 
        amended--
                    (A) in subsection (c)(1)(F), by striking ``canceled 
                upon the death'' and all that follows through the 
                semicolon and inserting ``cancelled--
                          ``(i) upon the death of the borrower;
                          ``(ii) if the borrower becomes permanently and 
                      totally disabled as determined in accordance with 
                      regulations of the Secretary;
                          ``(iii) if the borrower is unable to engage in 
                      any substantial gainful activity by reason of any 
                      medically

[[Page 122 STAT. 3267]]

                      determinable physical or mental impairment that 
                      can be expected to result in death, has lasted for 
                      a continuous period of not less than 60 months, or 
                      can be expected to last for a continuous period of 
                      not less than 60 months; or
                          ``(iv) if the borrower is determined by the 
                      Secretary of Veterans Affairs to be unemployable 
                      due to a service-connected disability;''; and
                    (B) by adding at the end the following:

    ``(k) The Secretary may develop such additional safeguards as the 
Secretary determines necessary to prevent fraud and abuse in the 
cancellation of liability under subsection (c)(1)(F). Notwithstanding 
subsection (c)(1)(F), the Secretary may promulgate regulations to resume 
collection on loans cancelled under subsection (c)(1)(F) in any case in 
which--
            ``(1) a borrower received a cancellation of liability under 
        subsection (c)(1)(F) and after the cancellation the borrower--
                    ``(A) receives a loan made, insured, or guaranteed 
                under this title; or
                    ``(B) has earned income in excess of the poverty 
                line; or
            ``(2) the Secretary determines necessary.''.
            (2) <<NOTE: 20 USC 1087dd note.>>  Effective date.--The 
        amendments made by paragraph (1) shall take effect on July 1, 
        2008.

    (c) Forbearance.--Section 464 (20 U.S.C. 1087dd) is further 
amended--
            (1) in subsection (e)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``, upon written request,'' and inserting ``, 
                as documented in accordance with paragraph (2),'';
                    (B) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A) through (C), respectively;
                    (C) by inserting ``(1)'' after ``Forbearance.--''; 
                and
                    (D) by adding at the end the following:

    ``(2) For the purpose of paragraph (1), the terms of forbearance 
agreed to by the parties shall be documented by--
            ``(A) confirming the agreement of the borrower by notice to 
        the borrower from the institution of higher education; and
            ``(B) recording the terms in the borrower's file.'';
            (2) in subsection (h)(1)(A), by striking ``12 ontime'' and 
        inserting ``9 on-time''; and
            (3) in subsection (j)(2), by striking ``(e)(3)'' and 
        inserting ``(e)(1)(C)''.
SEC. 465. CANCELLATION FOR PUBLIC SERVICE.

    Section 465(a) (20 U.S.C. 1087ee(a)) is amended--
            (1) in paragraph (2)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
            ``(A) as a full-time teacher for service in an academic year 
        (including such a teacher employed by an educational service 
        agency)--
                    ``(i) in a public or other nonprofit private 
                elementary school or secondary school, which, for the 
                purpose of this paragraph and for that year--

[[Page 122 STAT. 3268]]

                          ``(I) has been determined by the Secretary 
                      (pursuant to regulations of the Secretary and 
                      after consultation with the State educational 
                      agency of the State in which the school is 
                      located) to be a school in which the number of 
                      children meeting a measure of poverty under 
                      section 1113(a)(5) of the Elementary and Secondary 
                      Education Act of 1965, exceeds 30 percent of the 
                      total number of children enrolled in such school; 
                      and
                          ``(II) is in the school district of a local 
                      educational agency which is eligible in such year 
                      for assistance pursuant to part A of title I of 
                      the Elementary and Secondary Education Act of 
                      1965; or
                    ``(ii) in one or more public, or nonprofit private, 
                elementary schools or secondary schools or locations 
                operated by an educational service agency that have been 
                determined by the Secretary (pursuant to regulations of 
                the Secretary and after consultation with the State 
                educational agency of the State in which the educational 
                service agency operates) to be a school or location at 
                which the number of children taught who meet a measure 
                of poverty under section 1113(a)(5) of the Elementary 
                and Secondary Education Act of 1965, exceeds 30 percent 
                of the total number of children taught at such school or 
                location;'';
                    (B) in subparagraph (B), by striking ``Head Start 
                Act which'' and inserting ``Head Start Act, or in a 
                prekindergarten or child care program that is licensed 
                or regulated by the State, that'';
                    (C) in subparagraph (C), by inserting ``, including 
                a system administered by an educational service agency'' 
                after ``secondary school system'';
                    (D) by striking subparagraph (F) and inserting the 
                following:
            ``(F) as a full-time law enforcement officer or corrections 
        officer for service to local, State, or Federal law enforcement 
        or corrections agencies, or as a full-time attorney employed in 
        a defender organization established in accordance with section 
        3006A(g)(2) of title 18, United States Code;'';
                    (E) in subparagraph (H), by striking ``or'' after 
                the semicolon;
                    (F) in subparagraph (I), by striking the period and 
                inserting a semicolon; and
                    (G) by inserting before the matter following 
                subparagraph (I) the following:
            ``(J) as a full-time fire fighter for service to a local, 
        State, or Federal fire department or fire district;
            ``(K) as a full-time faculty member at a Tribal College or 
        University, as that term is defined in section 316;
            ``(L) as a librarian, if the librarian has a master's degree 
        in library science and is employed in--
                    ``(i) an elementary school or secondary school that 
                is eligible for assistance under part A of title I of 
                the Elementary and Secondary Education Act of 1965; or
                    ``(ii) a public library that serves a geographic 
                area that contains one or more schools eligible for 
                assistance under part A of title I of the Elementary and 
                Secondary Education Act of 1965; or

[[Page 122 STAT. 3269]]

            ``(M) as a full-time speech language pathologist, if the 
        pathologist has a masters degree and is working exclusively with 
        schools that are eligible for assistance under title I of the 
        Elementary and Secondary Education Act of 1965.''; and
            (2) in paragraph (3)(A)--
                    (A) in clause (i)--
                          (i) by inserting ``(D),'' after ``(C),''; and
                          (ii) by striking ``or (I)'' and inserting 
                      ``(I), (J), (K), (L), or (M)'';
                    (B) in clause (ii), by inserting ``or'' after the 
                semicolon;
                    (C) by striking clause (iii); and
                    (D) by redesignating clause (iv) as clause (iii).
SEC. 466. SENSE OF CONGRESS REGARDING FEDERAL PERKINS LOANS.

    It is the sense of Congress that the Federal Perkins Loan Program, 
which provides low-interest loans to help needy students finance the 
costs of postsecondary education, is an important part of Federal 
student aid, and should remain a campus-based aid program at colleges 
and universities.

                          PART F--NEED ANALYSIS

SEC. 471. COST OF ATTENDANCE.

    (a) Amendments.--Section 472(3) (20 U.S.C. 1087ll(3)) is amended--
            (1) in subparagraph (B), by striking ``and'' after the 
        semicolon;
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B), as amended by 
        paragraph (1), the following:
                    ``(C) for students who live in housing located on a 
                military base or for which a basic allowance is provided 
                under section 403(b) of title 37, United States Code, 
                shall be an allowance based on the expenses reasonably 
                incurred by such students for board but not for room; 
                and''.

    (b) <<NOTE: 20 USC 1087ll note.>>  Effective Date.--The amendments 
made by subsection (a) shall take effect on July 1, 2010.
SEC. 472. DISCRETION TO MAKE ADJUSTMENTS.

    (a) Amendments.--Section 479A(a) (as amended by Public Law 110-84) 
(20 U.S.C. 1087tt(a)) is amended--
            (1) by striking ``medical or dental expenses'' and inserting 
        ``medical, dental, or nursing home expenses'';
            (2) by inserting ``or dependent care'' after ``child care'';
            (3) by inserting ``student or'' before ``family member who 
        is a dislocated worker''; and
            (4) by striking the second to last sentence and inserting 
        the following: ``In addition, nothing in this title shall be 
        interpreted as limiting the authority of the student financial 
        aid administrator in such cases (1) to request and use 
        supplementary information about the financial status or personal 
        circumstances of eligible applicants in selecting recipients and 
        determining the amount of awards under this title, or (2) to 
        offer a dependent student financial assistance under section 
        428H or a Federal Direct Unsubsidized Stafford Loan without 
        requiring the parents of such student to file the financial aid 
        form prescribed under section 483 if the student financial aid

[[Page 122 STAT. 3270]]

        administrator verifies that the parent or parents of such 
        student have ended financial support of such student and refuse 
        to file such form.''.

    (b) Effective Date Amendment to the College Cost Reduction and 
Access Act.--Section 603(b) of the College Cost Reduction and Access Act 
(Public Law 110-84) <<NOTE: 20 USC 1087tt note.>> is amended by striking 
``July 1, 2009'' and inserting ``the date of enactment of the Higher 
Education Opportunity Act''.
SEC. 473. DEFINITIONS.

    (a) Total Income.--Section 480(a) (as amended by Public Law 110-84) 
(20 U.S.C. 1087vv(a)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``(A)'' after ``(1)'';
                    (B) by inserting ``subparagraph (B) and'' after 
                ``provided in''; and
                    (C) by adding at the end the following new 
                subparagraph:

    ``(B) Notwithstanding section 478(a), the Secretary may provide for 
the use of data from the second preceding tax year when and to the 
extent necessary to carry out the simplification of applications 
(including simplification for a subset of applications) used for the 
estimation and determination of financial aid eligibility. Such 
simplification may include the sharing of data between the Internal 
Revenue Service and the Department, pursuant to the consent of the 
taxpayer.''; and
            (2) in paragraph (2), by inserting ``no portion of veterans' 
        education benefits received by an individual,'' after ``any 
        program by an individual,''.

    (b) Untaxed Income and Benefits.--Section 480(b)(1)(E) (as amended 
by Public Law 110-84) (20 U.S.C. 1087vv(b)(1)(E)) is amended by 
inserting ``, except that the value of on-base military housing or the 
value of basic allowance for housing determined under section 403(b) of 
title 37, United States Code, received by the parents, in the case of a 
dependent student, or the student or student's spouse, in the case of an 
independent student, shall be excluded'' before the semicolon.
    (c) Independent Student.--Section 480(d)(1) (as amended by Public 
Law 110-84) (20 U.S.C. 1087vv(d)(1)) is amended--
            (1) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) is an orphan, in foster care, or a ward of the 
                court, or was an orphan, in foster care, or a ward of 
                the court at any time when the individual was 13 years 
                of age or older;''; and
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) is, or was immediately prior to attaining the 
                age of majority, an emancipated minor or in legal 
                guardianship as determined by a court of competent 
                jurisdiction in the individual's State of legal 
                residence;''.

    (d) Treatment of Cooperative Education Work Income.--Section 480(e) 
(as amended by Public Law 110-84) (20 U.S.C. 1087vv(e)) is amended--
            (1) by redesignating paragraphs (2) through (5) as 
        paragraphs (3) through (6), respectively; and

[[Page 122 STAT. 3271]]

            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) any income earned from work under a cooperative 
        education program offered by an institution of higher 
        education;''.

    (e) Other Financial Assistance.--Section 480(j)(1) (20 U.S.C. 
1087vv(j)(1)) is amended--
            (1) by striking ``veterans' education benefits as defined in 
        subsection (c), and''; and
            (2) by inserting before the period at the end the following: 
        ``, but excluding veterans' education benefits as defined in 
        subsection (c)''.

    (f) <<NOTE: 20 USC 1087vv note.>>  Effective Date.--The amendments 
made by this section shall take effect on July 1, 2010.

        PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

SEC. 481. DEFINITIONS.

    Section 481 (20 U.S.C. 1088) is amended--
            (1) in subsection (a)(2)(B), by inserting ``and that 
        measures program length in credit hours or clock hours'' after 
        ``baccalaureate degree''; and
            (2) by adding at the end the following:

    ``(e) Consumer Reporting Agency.--For purposes of this title, the 
term `consumer reporting agency' has the meaning given the term 
`consumer reporting agency that compiles and maintains files on 
consumers on a nationwide basis' in Section 603(p) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(p)).
    ``(f) Definition of Educational Service Agency.--For purposes of 
parts B, D, and E, the term `educational service agency' has the meaning 
given the term in section 9101 of the Elementary and Secondary Education 
Act of 1965.''.
SEC. 482. MASTER CALENDAR.

    (a) Amendment.--Section 482 (20 U.S.C. 1089) is amended--
            (1) <<NOTE: Deadlines.>> in subsection (a)(1), by striking 
        subparagraphs (B) and (C) and inserting the following:
                    ``(B) by March 1: proposed modifications, updates, 
                and notices pursuant to sections 478 and 483(a)(5) 
                published in the Federal Register;
                    ``(C) by June 1: final modifications, updates, and 
                notices pursuant to sections 478 and 483(a)(5) published 
                in the Federal Register;''; and
            (2) by adding at the end the following:

    ``(e) Compliance Calendar.-- <<NOTE: Deadline. Records.>> Prior to 
the beginning of each award year, the Secretary shall provide to 
institutions of higher education a list of all the reports and 
disclosures required under this Act. The list shall include--
            ``(1) the date each report or disclosure is required to be 
        completed and to be submitted, made available, or disseminated;
            ``(2) the required recipients of each report or disclosure;
            ``(3) any required method for transmittal or dissemination 
        of each report or disclosure;
            ``(4) a description of the content of each report or 
        disclosure sufficient to allow the institution to identify the 
        appropriate

[[Page 122 STAT. 3272]]

        individuals to be assigned the responsibility for such report or 
        disclosure;
            ``(5) references to the statutory authority, applicable 
        regulations, and current guidance issued by the Secretary 
        regarding each report or disclosure; and
            ``(6) any other information which is pertinent to the 
        content or distribution of the report or disclosure.''.

    (b) <<NOTE: 20 USC 1089 note.>>  Effective Date.--The amendment made 
by subsection (a)(1) shall take effect on July 1, 2010.
SEC. 483. IMPROVEMENTS TO PAPER AND ELECTRONIC FORMS AND 
                        PROCESSES.

    (a) Common Financial Aid Form Development and Processing.--Section 
483 (20 U.S.C. 1090) is amended--
            (1) in subsection (a), by striking paragraphs (1) through 
        (7) and inserting the following:
            ``(1) In general.--The Secretary, in cooperation with 
        representatives of agencies and organizations involved in 
        student financial assistance, shall produce, distribute, and 
        process free of charge common financial reporting forms as 
        described in this subsection to be used for application and 
        reapplication to determine the need and eligibility of a student 
        for financial assistance under parts A through E (other than 
        subpart 4 of part A). The forms shall be made available to 
        applicants in both paper and electronic formats and shall be 
        referred to as the `Free Application for Federal Student Aid' or 
        the `FAFSA'. The Secretary shall work to make the FAFSA 
        consumer-friendly and to make questions on the FAFSA easy for 
        students and families to read and understand, and shall ensure 
        that the FAFSA is available in formats accessible to individuals 
        with disabilities.
            ``(2) Paper format.--
                    ``(A) In general.--The Secretary shall develop, make 
                available, and process--
                          ``(i) a paper version of EZ FAFSA, as 
                      described in subparagraph (B); and
                          ``(ii) a paper version of the other forms 
                      described in this subsection, in accordance with 
                      subparagraph (C), for any applicant who does not 
                      meet the requirements of or does not wish to use 
                      the process described in subparagraph (B).
                    ``(B) EZ fafsa.--
                          ``(i) In general.--The Secretary shall develop 
                      and use, after appropriate field testing, a 
                      simplified paper form, to be known as the EZ 
                      FAFSA, to be used for applicants meeting the 
                      requirements of subsection (b) or (c) of section 
                      479.
                          ``(ii) Reduced data requirements.--The EZ 
                      FAFSA shall permit an applicant to submit, for 
                      financial assistance purposes, only the data 
                      elements required to make a determination of 
                      whether the applicant meets the requirements under 
                      subsection (b) or (c) of section 479.
                          ``(iii) State data.--The Secretary shall 
                      include on the EZ FAFSA such data items as may be 
                      necessary to award State financial assistance, as 
                      provided under paragraph (5), except that the 
                      Secretary shall not

[[Page 122 STAT. 3273]]

                      include a State's data if that State does not 
                      permit the State's resident applicants to use the 
                      EZ FAFSA for State assistance.
                          ``(iv) Free availability and processing.-- 
                      <<NOTE: Applicability.>> The provisions of 
                      paragraph (6) shall apply to the EZ FAFSA, and the 
                      data collected by means of the EZ FAFSA shall be 
                      available to institutions of higher education, 
                      guaranty agencies, and States in accordance with 
                      paragraph (10).
                    ``(C) Promoting the use of electronic fafsa.--
                          ``(i) In general.--The Secretary shall make 
                      all efforts to encourage all applicants to utilize 
                      the electronic version of the forms described in 
                      paragraph (3).
                          ``(ii) Maintenance of the fafsa in a printable 
                      electronic file.--The Secretary shall maintain a 
                      version of the paper forms described in 
                      subparagraphs (A) and (B) in a printable 
                      electronic file that is easily portable, 
                      accessible, and downloadable to students on the 
                      same website used to provide students with the 
                      electronic version of the forms described in 
                      paragraph (3).
                          ``(iii) Requests for printed copy.--The 
                      Secretary shall provide a printed copy of the full 
                      paper version of FAFSA upon request.
                          ``(iv) Reporting requirement.--The Secretary 
                      shall maintain data, and periodically report to 
                      Congress, on the impact of the digital divide on 
                      students completing applications for aid under 
                      this title. The Secretary shall report on the 
                      steps taken to eliminate the digital divide and 
                      reduce production of the paper form described in 
                      subparagraph (A). The Secretary's report shall 
                      specifically address the impact of the digital 
                      divide on the following student populations:
                                    ``(I) Independent students.
                                    ``(II) Traditionally 
                                underrepresented students.
                                    ``(III) Dependent students.
            ``(3) Electronic format.--
                    ``(A) In general.--The Secretary shall produce, 
                distribute, and process forms in electronic format to 
                meet the requirements of paragraph (1). The Secretary 
                shall develop an electronic version of the forms for 
                applicants who do not meet the requirements of 
                subsection (b) or (c) of section 479.
                    ``(B) Simplified applications: fafsa on the web.--
                          ``(i) In general.--The Secretary shall develop 
                      and use a simplified electronic version of the 
                      form to be used by applicants meeting the 
                      requirements under subsection (b) or (c) of 
                      section 479.
                          ``(ii) Reduced data requirements.--The 
                      simplified electronic version of the forms shall 
                      permit an applicant to submit, for financial 
                      assistance purposes, only the data elements 
                      required to make a determination of whether the 
                      applicant meets the requirements under subsection 
                      (b) or (c) of section 479.
                          ``(iii) Use of forms.--Nothing in this 
                      subsection shall be construed to prohibit the use 
                      of the forms

[[Page 122 STAT. 3274]]

                      developed by the Secretary pursuant to this 
                      paragraph by an eligible institution, eligible 
                      lender, guaranty agency, State grant agency, 
                      private computer software provider, a consortium 
                      thereof, or such other entities as the Secretary 
                      may designate.
                    ``(C) State data.--The Secretary shall include on 
                the electronic version of the forms such items as may be 
                necessary to determine eligibility for State financial 
                assistance, as provided under paragraph (5), except the 
                Secretary shall not require an applicant to enter data 
                pursuant to this subparagraph that are required by any 
                State other than the applicant's State of residence.
                    ``(D) Availability and processing.--The data 
                collected by means of the simplified electronic version 
                of the forms shall be available to institutions of 
                higher education, guaranty agencies, and States in 
                accordance with paragraph (10).
                    ``(E) Privacy.--The Secretary shall ensure that data 
                collection under this paragraph complies with section 
                552a of title 5, United States Code, and that any entity 
                using the electronic version of the forms developed by 
                the Secretary pursuant to this paragraph shall maintain 
                reasonable and appropriate administrative, technical, 
                and physical safeguards to ensure the integrity and 
                confidentiality of the information, and to protect 
                against security threats, or unauthorized uses or 
                disclosures of the information provided on the 
                electronic version of the forms. Data collected by such 
                electronic version of the forms shall be used only for 
                the application, award, and administration of aid 
                awarded under this title, State aid, or aid awarded by 
                eligible institutions or such entities as the Secretary 
                may designate. No data collected by such electronic 
                version of the forms shall be used for making final aid 
                awards under this title until such data have been 
                processed by the Secretary or a contractor or designee 
                of the Secretary, except as may be permitted under this 
                title.
                    ``(F) Signature.--Notwithstanding any other 
                provision of this Act, the Secretary may continue to 
                permit an electronic version of the form under this 
                paragraph to be submitted without a signature, if a 
                signature is subsequently submitted by the applicant or 
                if the applicant uses a personal identification number 
                provided by the Secretary under subparagraph (G).
                    ``(G) Personal identification numbers authorized.--
                The Secretary may continue to assign to an applicant a 
                personal identification number--
                          ``(i) to enable the applicant to use such 
                      number as a signature for purposes of completing 
                      an electronic version of a form developed under 
                      this paragraph; and
                          ``(ii) for any purpose determined by the 
                      Secretary to enable the Secretary to carry out 
                      this title.
                    ``(H) Personal identification number improvement.--
                The Secretary shall continue to work with the 
                Commissioner of Social Security to minimize the time 
                required for an applicant to obtain a personal 
                identification number when applying for aid under this 
                title through

[[Page 122 STAT. 3275]]

                an electronic version of a form developed under this 
                paragraph.
            ``(4) Streamlining.--
                    ``(A) Streamlined reapplication process.--
                          ``(i) In general.--The Secretary shall 
                      continue to streamline reapplication forms and 
                      processes for an applicant who applies for 
                      financial assistance under this title in the next 
                      succeeding academic year subsequent to an academic 
                      year for which such applicant applied for 
                      financial assistance under this title.
                          ``(ii) Updating of data elements.--The 
                      Secretary shall determine, in cooperation with 
                      States, institutions of higher education, 
                      agencies, and organizations involved in student 
                      financial assistance, the data elements that may 
                      be transferred from the previous academic year's 
                      application and those data elements that shall be 
                      updated.
                          ``(iii) Reduced data authorized.--Nothing in 
                      this title shall be construed as limiting the 
                      authority of the Secretary to reduce the number of 
                      data elements required of reapplicants.
                          ``(iv) Zero family contribution.--Applicants 
                      determined to have a zero family contribution 
                      pursuant to section 479(c) shall not be required 
                      to provide any financial data in a reapplication 
                      form, except data that are necessary to determine 
                      eligibility under such section.
                    ``(B) Reduction of data elements.--
                          ``(i) Reduction encouraged.--Of the number of 
                      data elements on the FAFSA used for the 2009-2010 
                      award year, the Secretary, in cooperation with 
                      representatives of agencies and organizations 
                      involved in student financial assistance and 
                      consistent with efforts under subsection (c), 
                      shall continue to reduce the number of such data 
                      elements required to be entered by all applicants, 
                      with the goal of reducing such number by 50 
                      percent.
                          ``(ii) Report.--The Secretary shall submit a 
                      report on the process of this reduction to each of 
                      the authorizing committees by June 30, 2011.
            ``(5) State requirements.--
                    ``(A) In general.--Except as provided in paragraphs 
                (2)(B)(iii), (3)(B), and (4)(A)(ii), the Secretary shall 
                include on the forms developed under this subsection, 
                such State-specific data items as the Secretary 
                determines are necessary to meet State requirements for 
                need-based State aid. Such items shall be selected in 
                consultation with State agencies in order to assist in 
                the awarding of State financial assistance in accordance 
                with the terms of this subsection. 
                The <<NOTE: Notification.>> number of such data items 
                shall not be less than the number included on the form 
                for the 2008-2009 award year unless a State notifies the 
                Secretary that the State no longer requires those data 
                items for the distribution of State need-based aid.
                    ``(B) Annual review.--The Secretary shall conduct an 
                annual review to determine--

[[Page 122 STAT. 3276]]

                          ``(i) which data items each State requires to 
                      award need-based State aid; and
                          ``(ii) if the State will permit an applicant 
                      to file a form described in paragraph (2)(B) or 
                      (3)(B).
                    ``(C) Federal register notice.-- 
                <<NOTE: Deadline.>> Beginning with the forms developed 
                under paragraphs (2)(B) and (3)(B) for the award year 
                2010-2011, the Secretary shall publish on an annual 
                basis a notice in the Federal Register requiring State 
                agencies to inform the Secretary--
                          ``(i) if the State agency is unable to permit 
                      applicants to utilize the simplified forms 
                      described in paragraphs (2)(B) and (3)(B); and
                          ``(ii) of the State-specific nonfinancial data 
                      that the State agency requires for delivery of 
                      State need-based financial aid.
                    ``(D) Use of simplified forms encouraged.--The 
                Secretary shall encourage States to take such steps as 
                are necessary to encourage the use of simplified forms 
                under this subsection, including those forms described 
                in paragraphs (2)(B) and (3)(B), for applicants who meet 
                the requirements of subsection (b) or (c) of section 
                479.
                    ``(E) Consequences if state does not accept 
                simplified forms.--If a State does not permit an 
                applicant to file a form described in paragraph (2)(B) 
                or (3)(B) for purposes of determining eligibility for 
                State need-based financial aid, the Secretary may 
                determine that State-specific questions for such State 
                will not be included on a form described in paragraph 
                (2)(B) or (3)(B). If the Secretary makes such 
                determination, the Secretary shall advise the State of 
                the Secretary's determination.
                    ``(F) Lack of state response to request for 
                information.--If a State does not respond to the 
                Secretary's request for information under subparagraph 
                (B), the Secretary shall--
                          ``(i) permit residents of that State to 
                      complete simplified forms under paragraphs (2)(B) 
                      and (3)(B); and
                          ``(ii) not require any resident of such State 
                      to complete any data items previously required by 
                      that State under this section.
                    ``(G) Restriction.--The Secretary shall, to the 
                extent practicable, not require applicants to complete 
                any financial or nonfinancial data items that are not 
                required--
                          ``(i) by the applicant's State; or
                          ``(ii) by the Secretary.
            ``(6) Charges to students and parents for use of forms 
        prohibited.--The need and eligibility of a student for financial 
        assistance under parts A through E (other than under subpart 4 
        of part A) may be determined only by using a form developed by 
        the Secretary under this subsection. Such forms shall be 
        produced, distributed, and processed by the Secretary, and no 
        parent or student shall be charged a fee by the Secretary, a 
        contractor, a third-party servicer or private software provider, 
        or any other public or private entity for the collection, 
        processing, or delivery of financial aid through the use of such 
        forms. No data collected on a form for which a fee is charged 
        shall be used to complete the form prescribed under this 
        section, except that a Federal or State income tax form prepared 
        by

[[Page 122 STAT. 3277]]

        a paid income tax preparer or preparer service for the primary 
        purpose of filing a Federal or State income tax return may be 
        used to complete the form prescribed under this section.
            ``(7) Restrictions on use of pin.--No person, commercial 
        entity, or other entity may request, obtain, or utilize an 
        applicant's personal identification number assigned under 
        paragraph (3)(G) for purposes of submitting a form developed 
        under this subsection on an applicant's behalf.
            ``(8) Application processing cycle.--The Secretary shall 
        enable students to submit forms developed under this subsection 
        and initiate the processing of such forms under this subsection, 
        as early as practicable prior to January 1 of the student's 
        planned year of enrollment.
            ``(9) Early estimates.--The Secretary shall continue to--
                    ``(A) permit applicants to enter data in such forms 
                as described in this subsection in the years prior to 
                enrollment in order to obtain a non-binding estimate of 
                the applicant's family contribution (as defined in 
                section 473);
                    ``(B) permit applicants to update information 
                submitted on forms described in this subsection, without 
                needing to re-enter previously submitted information;
                    ``(C) develop a means to inform applicants, in the 
                years prior to enrollment, of student aid options for 
                individuals in similar financial situations;
                    ``(D) develop a means to provide a clear and 
                conspicuous notice that the applicant's expected family 
                contribution is subject to change and may not reflect 
                the final expected family contribution used to determine 
                Federal student financial aid award amounts under this 
                title; and
                    ``(E) consult with representatives of States, 
                institutions of higher education, and other individuals 
                with experience or expertise in student financial 
                assistance application processes in making updates to 
                forms used to provide early estimates under this 
                paragraph.
            ``(10) Distribution of data.--Institutions of higher 
        education, guaranty agencies, and States shall receive, without 
        charge, the data collected by the Secretary using a form 
        developed under this subsection for the purposes of processing 
        loan applications and determining need and eligibility for 
        institutional and State financial aid awards. Entities 
        designated by institutions of higher education, guaranty 
        agencies, or States to receive such data shall be subject to all 
        the requirements of this section, unless such requirements are 
        waived by the Secretary.
            ``(11) Third party servicers and private software 
        providers.--To the extent practicable and in a timely manner, 
        the Secretary shall provide, to private organizations and 
        consortia that develop software used by institutions of higher 
        education for the administration of funds under this title, all 
        the necessary specifications that the organizations and 
        consortia must meet for the software the organizations and 
        consortia develop, produce, and distribute (including any 
        diskette, modem, or network communications) to be so used. The 
        specifications shall contain record layouts for required data. 
        The Secretary shall develop in advance of each processing cycle

[[Page 122 STAT. 3278]]

        an annual schedule for providing such specifications. The 
        Secretary, to the extent practicable, shall use multiple means 
        of providing such specifications, including conferences and 
        other meetings, outreach, and technical support mechanisms (such 
        as training and printed reference materials). The Secretary 
        shall, from time to time, solicit from such organizations and 
        consortia means of improving the support provided by the 
        Secretary.
            ``(12) Parent's social security number and birth date.--The 
        Secretary is authorized to include space on the forms developed 
        under this subsection for the social security number and birth 
        date of parents of dependent students seeking financial 
        assistance under this title.'';
            (2) by striking subsections (b) and (e);
            (3) by redesignating subsections (c) and (d) (as amended by 
        section 103(b)(10)) as subsections (b) and (c), respectively;
            (4) in subsection (c) (as redesignated by paragraph (3)), by 
        striking ``that is authorized'' and all that follows through the 
        period at the end and inserting ``or other appropriate provider 
        of technical assistance and information on postsecondary 
        educational services for individuals with disabilities, 
        including the National Technical Assistance Center under section 
        777. The <<NOTE: Communication and tele- 
        communications.>> Secretary shall continue to implement, to the 
        extent practicable, a toll-free telephone based system to permit 
        applicants who meet the requirements of subsection (b) or (c) of 
        section 479 to submit an application over such system.''; and
            (5) by adding at the end the following:

    ``(d) Assistance in Preparation of Financial Aid Application.--
            ``(1) Preparation authorized.--Notwithstanding any provision 
        of this Act, an applicant may use a preparer for consultative or 
        preparation services for the completion of a form developed 
        under subsection (a) if the preparer satisfies the requirements 
        of this subsection.
            ``(2) Preparer identification required.--If an applicant 
        uses a preparer for consultative or preparation services for the 
        completion of a form developed under subsection (a), and for 
        which a fee is charged, the preparer shall--
                    ``(A) include, at the time the form is submitted to 
                the Department, the name, address or employer's address, 
                social security number or employer identification 
                number, and organizational affiliation of the preparer 
                on the applicant's form; and
                    ``(B) be subject to the same penalties as an 
                applicant for purposely giving false or misleading 
                information in the application.
            ``(3) Additional requirements.--A preparer that provides 
        consultative or preparation services pursuant to this subsection 
        shall--
                    ``(A) clearly inform each individual upon initial 
                contact, including contact through the Internet or by 
                telephone, that the FAFSA and EZ FAFSA are free forms 
                that may be completed without professional assistance 
                via paper or electronic version of the forms that are 
                provided by the Secretary;
                    ``(B) include in any advertising clear and 
                conspicuous information that the FAFSA and EZ FAFSA are 
                free forms

[[Page 122 STAT. 3279]]

                that may be completed without professional assistance 
                via paper or electronic version of the forms that are 
                provided by the Secretary;
                    ``(C) if advertising or providing any information on 
                a website, or if providing services through a website, 
                include on the website a link to the website that 
                provides the electronic version of the forms developed 
                under subsection (a); and
                    ``(D) not produce, use, or disseminate any other 
                form for the purpose of applying for Federal student 
                financial aid other than the form developed by the 
                Secretary under subsection (a).
            ``(4) Special rule.--Nothing in this Act shall be construed 
        to limit preparers of the forms required under this title that 
        meet the requirements of this subsection from collecting source 
        information from a student or parent, including Internal Revenue 
        Service tax forms, in providing consultative and preparation 
        services in completing the forms.

    ``(e) Early Application and Estimated Award Demonstration Program.--
            ``(1) Purpose and objectives.--The purpose of the 
        demonstration program under this subsection is to measure the 
        benefits, in terms of student aspirations and plans to attend an 
        institution of higher education, and any adverse effects, in 
        terms of program costs, integrity, distribution, and delivery of 
        aid under this title, of implementing an early application 
        system for all dependent students that allows dependent students 
        to apply for financial aid using information from two years 
        prior to the year of enrollment. Additional objectives 
        associated with implementation of the demonstration program are 
        the following:
                    ``(A) To measure the feasibility of enabling 
                dependent students to apply for Federal, State, and 
                institutional financial aid in their junior year of 
                secondary school, using information from two years prior 
                to the year of enrollment, by completing any of the 
                forms under this subsection.
                    ``(B) To identify whether receiving final financial 
                aid award estimates not later than the fall of the 
                senior year of secondary school provides students with 
                additional time to compete for the limited resources 
                available for State and institutional financial aid and 
                positively impacts the college aspirations and plans of 
                these students.
                    ``(C) To measure the impact of using income 
                information from the years prior to enrollment on--
                          ``(i) eligibility for financial aid under this 
                      title and for other State and institutional aid; 
                      and
                          ``(ii) the cost of financial aid programs 
                      under this title.
                    ``(D) To effectively evaluate the benefits and 
                adverse effects of the demonstration program on program 
                costs, integrity, distribution, and delivery of 
                financial aid.
            ``(2) Program authorized.-- <<NOTE: Deadlines.>> Not later 
        than two years after the date of enactment of the Higher 
        Education Opportunity Act, the Secretary shall implement an 
        early application demonstration program enabling dependent 
        students who wish to participate in the program--

[[Page 122 STAT. 3280]]

                    ``(A) to complete an application under this 
                subsection during the academic year that is two years 
                prior to the year such students plan to enroll in an 
                institution of higher education; and
                    ``(B) based on the application described in 
                subparagraph (A), to obtain, not later than one year 
                prior to the year of the students' planned enrollment, 
                information on eligibility for Federal Pell Grants, 
                Federal student loans under this title, and State and 
                institutional financial aid for the student's first year 
                of enrollment in the institution of higher education.
            ``(3) Early application and estimated award.-- 
        <<NOTE: Deadline.>> For all dependent students selected for 
        participation in the demonstration program who submit a 
        completed FAFSA, or, as appropriate, an EZ FAFSA, two years 
        prior to the year such students plan to enroll in an institution 
        of higher education, the Secretary shall, not later than one 
        year prior to the year of such planned enrollment--
                    ``(A) provide each student who completes an early 
                application with an estimated determination of such 
                student's--
                          ``(i) expected family contribution for the 
                      first year of the student's enrollment in an 
                      institution of higher education; and
                          ``(ii) Federal Pell Grant award for the first 
                      such year, based on the maximum Federal Pell Grant 
                      award at the time of application; and
                    ``(B) remind the students of the need to update the 
                students' information during the calendar year of 
                enrollment using the expedited reapplication process 
                provided for in subsection (a)(4)(A).
            ``(4) Participants.--The Secretary shall include as 
        participants in the demonstration program--
                    ``(A) States selected through the application 
                process described in paragraph (5);
                    ``(B) institutions of higher education within the 
                selected States that are interested in participating in 
                the demonstration program, and that can make estimates 
                or commitments of institutional student financial aid, 
                as appropriate, to students the year before the 
                students' planned enrollment date; and
                    ``(C) secondary schools within the selected States 
                that are interested in participating in the 
                demonstration program, and that can commit resources 
                to--
                          ``(i) advertising the availability of the 
                      program;
                          ``(ii) identifying students who might be 
                      interested in participating in the program;
                          ``(iii) encouraging such students to apply; 
                      and
                          ``(iv) participating in the evaluation of the 
                      program.
            ``(5) Applications.--Each State that is interested in 
        participating in the demonstration program shall submit an 
        application to the Secretary at such time, in such form, and 
        containing such information as the Secretary shall require. The 
        application shall include--
                    ``(A) information on the amount of the State's need-
                based student financial assistance available, and the 
                eligibility criteria for receiving such assistance;

[[Page 122 STAT. 3281]]

                    ``(B) a commitment to make, not later than the year 
                before the dependent students participating in the 
                demonstration program plan to enroll in an institution 
                of higher education, an estimate of the award of State 
                financial aid to such dependent students;
                    ``(C) a plan for recruiting institutions of higher 
                education and secondary schools with different 
                demographic characteristics to participate in the 
                program;
                    ``(D) a plan for selecting institutions of higher 
                education and secondary schools to participate in the 
                program that--
                          ``(i) demonstrate a commitment to encouraging 
                      students to submit a FAFSA, or, as appropriate, an 
                      EZ FAFSA, two years before the students' planned 
                      date of enrollment in an institution of higher 
                      education;
                          ``(ii) serve different populations of 
                      students;
                          ``(iii) in the case of institutions of higher 
                      education--
                                    ``(I) to the extent possible, are of 
                                varying types and sectors; and
                                    ``(II) commit to making, not later 
                                than the year prior to the year that 
                                dependent students participating in the 
                                demonstration program plan to enroll in 
                                the institution--
                                            ``(aa) estimated 
                                        institutional awards to 
                                        participating dependent 
                                        students; and
                                            ``(bb) estimated grants or 
                                        other financial aid available 
                                        under this title (including 
                                        supplemental grants under 
                                        subpart 3 of part A), for all 
                                        participating dependent 
                                        students, along with information 
                                        on State awards, as provided to 
                                        the institution by the State;
                    ``(E) a commitment to participate in the evaluation 
                conducted by the Secretary; and
                    ``(F) such other information as the Secretary may 
                require.
            ``(6) Special provisions.--
                    ``(A) Discretion of student financial aid 
                administrators.--A financial aid administrator at an 
                institution of higher education participating in a 
                demonstration program under this subsection may use the 
                discretion provided under section 479A as necessary for 
                students participating in the demonstration program.
                    ``(B) Waivers.--The Secretary is authorized to 
                waive, for an institution of higher education 
                participating in the demonstration program, any 
                requirements under this title, or regulations prescribed 
                under this title, that will make the demonstration 
                program unworkable, except that the Secretary shall not 
                waive any provisions with respect to the maximum award 
                amounts for grants and loans under this title.
            ``(7) Outreach.-- <<NOTE: Notification.>> The Secretary 
        shall make appropriate efforts to notify States of the 
        demonstration program under this subsection. Upon determination 
        of participating States, the Secretary shall continue to make 
        efforts to notify institutions of higher education and dependent 
        students within participating States of the opportunity to 
        participate in the demonstration program and of the 
        participation requirements.

[[Page 122 STAT. 3282]]

            ``(8) Evaluation.--The Secretary shall conduct a rigorous 
        evaluation of the demonstration program to measure the program's 
        benefits and adverse effects, as the benefits and effects relate 
        to the purpose and objectives of the program described in 
        paragraph (1). In conducting the evaluation, the Secretary 
        shall--
                    ``(A) identify whether receiving financial aid 
                estimates one year prior to the year in which the 
                student plans to enroll in an institution of higher 
                education, has a positive impact on the higher education 
                aspirations and plans of such student;
                    ``(B) measure the extent to which using a student's 
                income information from the year that is two years prior 
                to the student's planned enrollment date had an impact 
                on the ability of States and institutions of higher 
                education to make financial aid awards and commitments;
                    ``(C) determine what operational changes are 
                required to implement the program on a larger scale;
                    ``(D) identify any changes to Federal law that are 
                necessary to implement the program on a permanent basis;
                    ``(E) identify the benefits and adverse effects of 
                providing early estimates on program costs, program 
                operations, program integrity, award amounts, 
                distribution, and delivery of aid; and
                    ``(F) examine the extent to which estimated awards 
                differ from actual awards made to students participating 
                in the program.
            ``(9) Consultation.--The Secretary shall consult, as 
        appropriate, with the Advisory Committee on Student Financial 
        Assistance established under section 491 on the design, 
        implementation, and evaluation of the demonstration program.

    ``(f) Reduction of Income and Asset Information to Determine 
Eligibility for Student Financial Aid.--
            ``(1) Continuation of current fafsa simplification 
        efforts.--The Secretary shall continue to examine--
                    ``(A) how the Internal Revenue Service can provide 
                to the Secretary income and other data needed to compute 
                an expected family contribution for taxpayers and 
                dependents of taxpayers, and when in the application 
                cycle the data can be made available;
                    ``(B) whether data provided by the Internal Revenue 
                Service can be used to--
                          ``(i) prepopulate the electronic version of 
                      the FAFSA with student and parent taxpayer data; 
                      or
                          ``(ii) generate an expected family 
                      contribution without additional action on the part 
                      of the student and taxpayer; and
                    ``(C) whether the data elements collected on the 
                FAFSA that are needed to determine eligibility for 
                student aid, or to administer the Federal student 
                financial aid programs under this title, but are not 
                needed to compute an expected family contribution, such 
                as information regarding the student's citizenship or 
                permanent residency status, registration for selective 
                service, or driver's license number, can be reduced 
                without adverse effects.
            ``(2) Report on fafsa simplification efforts to date.--Not 
        later than 90 days after the date of enactment of the

[[Page 122 STAT. 3283]]

        Higher Education Opportunity Act, the Secretary shall provide a 
        written report to the authorizing committees on the work the 
        Department has done with the Secretary of the Treasury 
        regarding--
                    ``(A) how the expected family contribution of a 
                student can be calculated using substantially less 
                income and asset information than was used on March 31, 
                2008;
                    ``(B) the extent to which the reduced income and 
                asset information will result in a redistribution of 
                Federal grants and subsidized loans under this title, 
                State aid, or institutional aid, or in a change in the 
                composition of the group of recipients of such aid, and 
                the amount of such redistribution;
                    ``(C) how the alternative approaches for calculating 
                the expected family contribution will--
                          ``(i) rely mainly, in the case of students and 
                      parents who file income tax returns, on 
                      information available on the 1040, 1040EZ, and 
                      1040A; and
                          ``(ii) include formulas for adjusting income 
                      or asset information to produce similar results to 
                      the existing approach with less data;
                    ``(D) how the Internal Revenue Service can provide 
                to the Secretary of Education income and other data 
                needed to compute an expected family contribution for 
                taxpayers and dependents of taxpayers, and when in the 
                application cycle the data can be made available;
                    ``(E) whether data provided by the Internal Revenue 
                Service can be used to--
                          ``(i) prepopulate the electronic version of 
                      the FAFSA with student and parent taxpayer data; 
                      or
                          ``(ii) generate an expected family 
                      contribution without additional action on the part 
                      of the student and taxpayer;
                    ``(F) the extent to which the use of income data 
                from two years prior to a student's planned enrollment 
                date will change the expected family contribution 
                computed in accordance with part F, and potential 
                adjustments to the need analysis formula that will 
                minimize the change; and
                    ``(G) the extent to which the data elements 
                collected on the FAFSA on March 31, 2008, that are 
                needed to determine eligibility for student aid or to 
                administer the Federal student financial aid programs, 
                but are not needed to compute an expected family 
                contribution, such as information regarding the 
                student's citizenship or permanent residency status, 
                registration for selective service, or driver's license 
                number, can be reduced without adverse effects.
            ``(3) Study.--
                    ``(A) Formation of study group.-- 
                <<NOTE: Deadline.>> Not later than 90 days after the 
                date of enactment of the Higher Education Opportunity 
                Act, the Comptroller General shall convene a study group 
                the membership of which shall include the Secretary of 
                Education, the Secretary of the Treasury, the Director 
                of the Office of Management and Budget, the Director of 
                the Congressional Budget Office, representatives of 
                institutions of higher education with expertise in 
                Federal and State financial aid assistance, State chief

[[Page 122 STAT. 3284]]

                executive officers of higher education with a 
                demonstrated commitment to simplifying the FAFSA, and 
                such other individuals as the Comptroller General and 
                the Secretary of Education may designate.
                    ``(B) Study required.--The Comptroller General, in 
                consultation with the study group convened under 
                subparagraph (A) shall--
                          ``(i) review and build on the work of the 
                      Secretary of Education and the Secretary of the 
                      Treasury, and individuals with expertise in 
                      analysis of financial need, to assess alternative 
                      approaches for calculating the expected family 
                      contribution under the statutory need analysis 
                      formula in effect on the day before the date of 
                      enactment of the Higher Education Opportunity Act 
                      and under a new calculation that will use 
                      substantially less income and asset information 
                      than was used for the 2008-2009 FAFSA;
                          ``(ii) conduct an additional analysis if 
                      necessary; and
                          ``(iii) <<NOTE: Recommen- dations.>> make 
                      recommendations to the authorizing committees.
                    ``(C) Objectives of study.--The objectives of the 
                study required under subparagraph (B) are--
                          ``(i) to determine methods to shorten the 
                      FAFSA and make the FAFSA easier and less time-
                      consuming to complete, thereby increasing higher 
                      education access for low-income students;
                          ``(ii) to identify changes to the statutory 
                      need analysis formula that will be necessary to 
                      reduce the amount of financial information 
                      students and families need to provide to receive a 
                      determination of eligibility for student financial 
                      aid without causing significant redistribution of 
                      Federal grants and subsidized loans under this 
                      title; and
                          ``(iii) to review State and institutional 
                      needs and uses for data collected on the FAFSA, 
                      and to determine the best means of addressing such 
                      needs in the case of modification of the FAFSA as 
                      described in clause (i), or modification of the 
                      need analysis formula as described in clause (ii).
                    ``(D) Required subjects of study.--The study 
                required under subparagraph (B) shall examine--
                          ``(i) with respect to simplification of the 
                      financial aid application process using the 
                      statutory requirements for need analysis--
                                    ``(I) additional steps that can be 
                                taken to simplify the financial aid 
                                application process for students who 
                                (or, in the case of dependent students, 
                                whose parents) are not required to file 
                                a Federal income tax return for the 
                                prior taxable year;
                                    ``(II) information on State use of 
                                information provided on the FAFSA, 
                                including--
                                            ``(aa) whether a State uses, 
                                        as of the time of the study, or 
                                        can use, a student's expected 
                                        family contribution based on 
                                        data from two years prior to the 
                                        student's planned enrollment 
                                        date;

[[Page 122 STAT. 3285]]

                                            ``(bb) the extent to which 
                                        States and institutions will 
                                        accept the data provided by the 
                                        Internal Revenue Service to 
                                        prepopulate the electronic 
                                        version of the FAFSA to 
                                        determine the distribution of 
                                        State and institutional student 
                                        financial aid funds;
                                            ``(cc) what data are used by 
                                        States, as of the time of the 
                                        study, to determine eligibility 
                                        for State student financial aid, 
                                        and whether the data are used 
                                        for merit- or need-based aid;
                                            ``(dd) whether State data 
                                        are required by State law, State 
                                        regulations, or policy 
                                        directives; and
                                            ``(ee) the extent to which 
                                        any State-specific information 
                                        requirements can be met by 
                                        completion of a State 
                                        application linked to the 
                                        electronic version of the FAFSA; 
                                        and
                                    ``(III) information on institutional 
                                needs, including the extent to which 
                                institutions of higher education are 
                                already using supplemental forms to 
                                collect additional data from students 
                                and their families to determine 
                                eligibility for institutional funds; and
                          ``(ii) ways to reduce the amount of financial 
                      information students and families need to provide 
                      to receive a determination of eligibility for 
                      student financial aid, taking into account--
                                    ``(I) the amount of redistribution 
                                of Federal grants and subsidized loans 
                                under this title caused by such a 
                                reduction, and the benefits to be gained 
                                by having an application process that 
                                will be easier for students and their 
                                families;
                                    ``(II) students and families who do 
                                not file income tax returns;
                                    ``(III) the extent to which the full 
                                array of income and asset information 
                                collected on the FAFSA, as of the time 
                                of the study, plays an important role in 
                                the awarding of need-based State 
                                financial aid, and whether the State can 
                                use an expected family contribution 
                                generated by the FAFSA, instead of 
                                income and asset information or a 
                                calculation with reduced data elements, 
                                to support determinations of eligibility 
                                for such State aid programs and, if not, 
                                what additional information will be 
                                needed or what changes to the FAFSA will 
                                be required; and
                                    ``(IV) information on institutional 
                                needs, including the extent to which 
                                institutions of higher education are 
                                already using supplemental forms to 
                                collect additional data from students 
                                and their families to determine 
                                eligibility for institutional funds; and
                                    ``(V) changes to this Act or other 
                                laws that will be required to implement 
                                a modified need analysis system.

[[Page 122 STAT. 3286]]

            ``(4) Consultation.--The Secretary shall consult with the 
        Advisory Committee on Student Financial Assistance established 
        under section 491 as appropriate in carrying out this 
        subsection.
            ``(5) Reports.--
                    ``(A) Reports on study.--The Secretary shall prepare 
                and submit to the authorizing committees--
                          ``(i) not later than one year after the date 
                      of enactment of the Higher Education Opportunity 
                      Act, an interim report on the progress of the 
                      study required under paragraph (3) that includes 
                      any preliminary recommendations by the study group 
                      established under such paragraph; and
                          ``(ii) not later than two years after the date 
                      of enactment of the Higher Education Opportunity 
                      Act, a final report on the results of the study 
                      required under paragraph (3) that includes 
                      recommendations by the study group established 
                      under such paragraph.
                    ``(B) Reports on fafsa simplification efforts.--The 
                Secretary shall report to the authorizing committees, 
                from time to time, on the progress of the simplification 
                efforts under this subsection.

    ``(g) Addressing the Digital Divide.--The Secretary shall utilize 
savings accrued by moving more applicants to the electronic version of 
the forms described in subsection (a)(3) to improve access to the 
electronic version of the forms described in such subsection for 
applicants meeting the requirements of subsection (b) or (c) of section 
479.
    ``(h) Adjustments.--The Secretary shall disclose, on the form 
notifying a student of the student's expected family contribution, that 
the student may, on a case-by-case basis, qualify for an adjustment 
under section 479A to the cost of attendance or the values of the data 
items required to calculate the expected contribution for the student or 
parent. Such disclosure shall specify--
            ``(1) the special circumstances under which a student or 
        family member may qualify for such adjustment; and
            ``(2) additional information regarding the steps a student 
        or family member may take in order to seek an adjustment under 
        section 479A.''.
SEC. 484. MODEL <<NOTE: 20 USC 1092 note.>> INSTITUTION FINANCIAL 
                        AID OFFER FORM.

    (a) Model Format.-- <<NOTE: Deadlines.>> The Secretary of Education 
shall--
            (1) not later than six months after the date of enactment of 
        the Higher Education Opportunity Act, convene a group of 
        students, families of students, secondary school guidance 
        counselors, representatives of institutions of higher education 
        (including financial aid administrators, registrars, and 
        business officers), and nonprofit consumer groups for the 
        purpose of offering recommendations for improvements that--
                    (A) can be made to financial aid offer forms; and
                    (B) include the information described in subsection 
                (b);
            (2) develop a model format for financial aid offer forms 
        based on the recommendations of the group; and
            (3) <<NOTE: Recommen- dations.>> not later than one year 
        after the date of enactment of the Higher Education Opportunity 
        Act--

[[Page 122 STAT. 3287]]

                    (A) submit recommendations to the authorizing 
                committees (as defined in section 103 of the Higher 
                Education Act of 1965 (20 U.S.C. 1003); and
                    (B) make the recommendations and model format widely 
                available.

    (b) Contents.--The recommendations developed under subsection (a) 
for model financial aid offer forms shall include, in a consumer-
friendly manner that is simple and understandable, the following:
            (1) Information on the student's cost of attendance, 
        including the following:
                    (A) Tuition and fees.
                    (B) Room and board costs.
                    (C) Books and supplies.
                    (D) Transportation.
            (2) The amount of financial aid that the student does not 
        have to repay, such as scholarships, grants, and work-study 
        assistance, offered to the student for such year, and the 
        conditions of such financial aid.
            (3) The types and amounts of loans under part B, D, or E of 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
        seq., 1087a et seq., 1087aa et seq.) for which the student is 
        eligible for such year, and the applicable terms and conditions 
        of such loans.
            (4) The net amount that the student, or the student's family 
        on behalf of the student, will have to pay for the student to 
        attend the institution for such year, equal to--
                    (A) the cost of attendance for the student for such 
                year; minus
                    (B) the amount of financial aid described in 
                paragraphs (2) and (3) that is offered in the financial 
                aid offer form.
            (5) Where a student or the student's family can seek 
        additional information regarding the financial aid offered.
            (6) Any other information the Secretary of Education 
        determines necessary so that students and parents can make 
        informed student loan borrowing decisions.
SEC. 485. STUDENT ELIGIBILITY.

    (a) Amendments.--Section 484 (20 U.S.C. 1091) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4)(B), by striking ``number,'' and 
                all that follows through the semicolon and inserting 
                ``number;''; and
                    (B) in paragraph (5)--
                          (i) by inserting ``or'' after ``a permanent 
                      resident of the United States,''; and
                          (ii) by striking ``citizen or permanent 
                      resident'' and all that follows through the 
                      semicolon and inserting ``citizen or permanent 
                      resident;'';
            (2) in subsection (b)(1), by inserting ``, or under section 
        428H pursuant to an exercise of discretion under section 479A'' 
        after ``428C'';
            (3) in subsection (d), by adding at the end the following:
            ``(4) The student shall be determined by the institution of 
        higher education as having the ability to benefit from the 
        education or training offered by the institution of higher 
        education upon satisfactory completion of six credit hours or 
        the

[[Page 122 STAT. 3288]]

        equivalent coursework that are applicable toward a degree or 
        certificate offered by the institution of higher education.'';
            (4) by striking subsection (j);
            (5) by striking subsection (l) and inserting the following:

    ``(l) Courses Offered Through Distance Education.--
            ``(1) Relation to correspondence courses.--
                    ``(A) In general.--A student enrolled in a course of 
                instruction at an institution of higher education that 
                is offered principally through distance education and 
                leads to a recognized certificate, or recognized 
                associate, recognized baccalaureate, or recognized 
                graduate degree, conferred by such institution, shall 
                not be considered to be enrolled in correspondence 
                courses.
                    ``(B) Exception.--An institution of higher education 
                referred to in subparagraph (A) shall not include an 
                institution or school described in section 3(3)(C) of 
                the Carl D. Perkins Career and Technical Education Act 
                of 2006.
            ``(2) Reductions of financial aid.--A student's eligibility 
        to receive grants, loans, or work assistance under this title 
        shall be reduced if a financial aid officer determines under the 
        discretionary authority provided in section 479A that distance 
        education results in a substantially reduced cost of attendance 
        to such student.
            ``(3) Special rule.--For award years beginning prior to July 
        1, 2008, the Secretary shall not take any compliance, 
        disallowance, penalty, or other action based on a violation of 
        this subsection against a student or an eligible institution 
        when such action arises out of such institution's prior award of 
        student assistance under this title if the institution 
        demonstrates to the satisfaction of the Secretary that its 
        course of instruction would have been in conformance with the 
        requirements of this subsection.'';
            (6) by striking subsection (q) and inserting the following:

    ``(q) Use of Income Data.--
            ``(1) Matching with irs.--The Secretary, in cooperation with 
        the Secretary of the Treasury, is authorized to obtain from the 
        Internal Revenue Service such information reported on Federal 
        income tax returns by applicants, or by any other person whose 
        financial information is required to be provided on the Federal 
        student financial aid application, as the Secretary determines 
        is necessary for the purpose of--
                    ``(A) prepopulating the Federal student financial 
                aid application described in section 483; or
                    ``(B) verifying the information reported on such 
                student financial aid applications.
            ``(2) Consent.--The Secretary may require that applicants 
        for financial assistance under this title provide a consent to 
        the disclosure of the data described in paragraph (1) as a 
        condition of the student receiving assistance under this title. 
        The parents of an applicant, in the case of a dependent student, 
        or the spouse of an applicant, in the case of an applicant who 
        is married but files separately, may also be required to provide 
        consent as a condition of the student receiving assistance under 
        this title.'';
            (7) in subsection (r)(2)--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end of clause (ii);

[[Page 122 STAT. 3289]]

                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) <<NOTE: Criteria. Regulations.>> the student 
                successfully passes two unannounced drug tests conducted 
                by a drug rehabilitation program that complies with such 
                criteria as the Secretary shall prescribe in regulations 
                for purposes of subparagraph (A)(i); or'';
            (8) by adding at the end the following:

    ``(s) Students With Intellectual Disabilities.--
            ``(1) Definitions.--In this subsection the terms 
        `comprehensive transition and postsecondary program for students 
        with intellectual disabilities' and `student with an 
        intellectual disability' have the meanings given the terms in 
        section 760.
            ``(2) Requirements.--Notwithstanding subsections (a), (c), 
        and (d), in order to receive any grant or work assistance under 
        section 401, subpart 3 of part A, or part C, a student with an 
        intellectual disability shall--
                    ``(A) be enrolled or accepted for enrollment in a 
                comprehensive transition and postsecondary program for 
                students with intellectual disabilities at an 
                institution of higher education;
                    ``(B) be maintaining satisfactory progress in the 
                program as determined by the institution, in accordance 
                with standards established by the institution; and
                    ``(C) meet the requirements of paragraphs (3), (4), 
                (5), and (6) of subsection (a).
            ``(3) Authority.-- <<NOTE: Waiver 
        authority.>> Notwithstanding any other provision of law unless 
        such provision is enacted with specific reference to this 
        section, the Secretary is authorized to waive any statutory 
        provision applicable to the student financial assistance 
        programs under section 401, subpart 3 of part A, or part C 
        (other than a provision of part F related to such a program), or 
        any institutional eligibility provisions of this title, as the 
        Secretary determines necessary to ensure that programs enrolling 
        students with intellectual disabilities otherwise determined to 
        be eligible under this subsection may receive such financial 
        assistance.
            ``(4) Regulations.--Notwithstanding regulations applicable 
        to grant or work assistance awards made under section 401, 
        subpart 3 of part A, and part C (other than a regulation under 
        part F related to such an award), including with respect to 
        eligible programs, instructional time, credit status, and 
        enrollment status as described in section 481, the Secretary 
        shall promulgate regulations allowing programs enrolling 
        students with intellectual disabilities otherwise determined to 
        be eligible under this subsection to receive such awards.''; and
            (9) by adding after subsection (s) (as added by paragraph 
        (7)) the following:

    ``(t) Data Analysis on Access to Federal Student Aid For Certain 
Populations.--
            ``(1) Development of the system.-- 
        <<NOTE: Deadline.>> Within one year of enactment of the Higher 
        Education Opportunity Act, the Secretary shall analyze data from 
        the FAFSA containing information regarding the number, 
        characteristics, and circumstances

[[Page 122 STAT. 3290]]

        of students denied Federal student aid based on a drug 
        conviction while receiving Federal aid.
            ``(2) Results from analysis.-- <<NOTE: Web site.>> The 
        results from the analysis of such information shall be made 
        available on a continuous basis via the Department website and 
        the Digest of Education Statistics.
            ``(3) Data updating.--The data analyzed under this 
        subsection shall be updated at the beginning of each award year 
        and at least one additional time during such award year.
            ``(4) Report to congress.--The Secretary shall prepare and 
        submit to the authorizing committees, in each fiscal year, a 
        report describing the results obtained by the establishment and 
        operation of the data system authorized by this subsection.''.

    (b) <<NOTE: 20 USC 1091 note.>>  Effective Date.--The amendments 
made by subsection (a) shall take effect on July 1, 2010, except that 
the amendments made by paragraphs (3), (4), and (8) of such subsection 
shall take effect on the date of enactment of this Act.
SEC. 486. STATUTE OF LIMITATIONS AND STATE COURT JUDGMENTS.

    Section 484A (20 U.S.C. 1091a) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (2), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) in collecting any obligation arising from a loan made 
        under part E, an institution of higher education that has an 
        agreement with the Secretary pursuant to section 463(a) shall 
        not be subject to a defense raised by any borrower based on a 
        claim of infancy.''; and
            (2) by adding at the end the following:

    ``(d) Special Rule.--This section shall not apply in the case of a 
student who is deceased, or to a deceased student's estate or the estate 
of such student's family. If a student is deceased, then the student's 
estate or the estate of the student's family shall not be required to 
repay any financial assistance under this title, including interest paid 
on the student's behalf, collection costs, or other charges specified in 
this title.''.
SEC. 487. READMISSION REQUIREMENTS FOR SERVICEMEMBERS.

    Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 484B the following:
``SEC. 484C. <<NOTE: 20 USC 1091c.>> READMISSION REQUIREMENTS FOR 
                          SERVICEMEMBERS.

    ``(a) Definition of Service in the Uniformed Services.--In this 
section, the term `service in the uniformed services' means service 
(whether voluntary or involuntary) on active duty in the Armed Forces, 
including such service by a member of the National Guard or Reserve, for 
a period of more than 30 days under a call or order to active duty of 
more than 30 days.
    ``(b) Discrimination Against Students Who Serve in the Uniformed 
Services Prohibited.--A person who is a member of, applies to be a 
member of, performs, has performed, applies to perform, or has an 
obligation to perform, service in the uniformed services shall not be 
denied readmission to an institution of higher

[[Page 122 STAT. 3291]]

education on the basis of that membership, application for membership, 
performance of service, application for service, or obligation.
    ``(c) Readmission Procedures.--
            ``(1) In general.--Any student whose absence from an 
        institution of higher education is necessitated by reason of 
        service in the uniformed services shall be entitled to 
        readmission to the institution of higher education if--
                    ``(A) the student (or an appropriate officer of the 
                Armed Forces or official of the Department of Defense) 
                gives advance written or verbal notice of such service 
                to the appropriate official at the institution of higher 
                education;
                    ``(B) the cumulative length of the absence and of 
                all previous absences from that institution of higher 
                education by reason of service in the uniformed services 
                does not exceed five years; and
                    ``(C) except as otherwise provided in this section, 
                the student submits a notification of intent to reenroll 
                in the institution of higher education in accordance 
                with the provisions of paragraph (4).
            ``(2) Exceptions.--
                    ``(A) Military necessity.--No notice is required 
                under paragraph (1)(A) if the giving of such notice is 
                precluded by military necessity, such as--
                          ``(i) a mission, operation, exercise, or 
                      requirement that is classified; or
                          ``(ii) a pending or ongoing mission, 
                      operation, exercise, or requirement that may be 
                      compromised or otherwise adversely affected by 
                      public knowledge.
                    ``(B) Failure to give advance notice.--Any student 
                (or an appropriate officer of the Armed Forces or 
                official of the Department of Defense) who did not give 
                advance written or verbal notice of service to the 
                appropriate official at the institution of higher 
                education in accordance with paragraph (1)(A) may meet 
                the notice requirement by submitting, at the time the 
                student seeks readmission, an attestation to the 
                student's institution of higher education that the 
                student performed service in the uniformed services that 
                necessitated the student's absence from the institution 
                of higher education.
            ``(3) Applicability.--This section shall apply to a student 
        who is absent from an institution of higher education by reason 
        of service in the uniformed services if such student's 
        cumulative period of service in the Armed Forces (including the 
        National Guard or Reserve), with respect to the institution of 
        higher education for which a student seeks readmission, does not 
        exceed five years, except that any such period of service shall 
        not include any service--
                    ``(A) that is required, beyond five years, to 
                complete an initial period of obligated service;
                    ``(B) during which such student was unable to obtain 
                orders releasing such student from a period of service 
                in the uniformed services before the expiration of such 
                five-year period and such inability was through no fault 
                of such student; or
                    ``(C) performed by a member of the Armed Forces 
                (including the National Guard and Reserves) who is--

[[Page 122 STAT. 3292]]

                          ``(i) ordered to or retained on active duty 
                      under section 688, 12301(a), 12301(g), 12302, 
                      12304, or 12305 of title 10, United States Code, 
                      or under section 331, 332, 359, 360, 367, or 712 
                      of title 14, United States Code;
                          ``(ii) ordered to or retained on active duty 
                      (other than for training) under any provision of 
                      law because of a war or national emergency 
                      declared by the President or the Congress, as 
                      determined by the Secretary concerned;
                          ``(iii) ordered to active duty (other than for 
                      training) in support, as determined by the 
                      Secretary concerned, of an operational mission for 
                      which personnel have been ordered to active duty 
                      under section 12304 of title 10, United States 
                      Code;
                          ``(iv) ordered to active duty in support, as 
                      determined by the Secretary concerned, of a 
                      critical mission or requirement of the Armed 
                      Forces (including the National Guard or Reserve); 
                      or
                          ``(v) called into Federal service as a member 
                      of the National Guard under chapter 15 of title 
                      10, United States Code, or section 12406 of title 
                      10, United States Code.
            ``(4) Notification <<NOTE: Deadlines.>> of intent to 
        return.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a student referred to in subsection 
                (a) shall, upon the completion of a period of service in 
                the uniformed services, notify the institution of higher 
                education of the student's intent to return to the 
                institution not later than three years after the 
                completion of the period of service.
                    ``(B) Hospitalization or convalescence.--A student 
                who is hospitalized for or convalescing from an illness 
                or injury incurred in or aggravated during the 
                performance of service in the uniformed services shall 
                notify the institution of higher education of the 
                student's intent to return to the institution not later 
                than two years after the end of the period that is 
                necessary for recovery from such illness or injury.
                    ``(C) Special rule.--A student who fails to apply 
                for readmission within the period described in this 
                section shall not automatically forfeit such eligibility 
                for readmission to the institution of higher education, 
                but shall be subject to the institution of higher 
                education's established leave of absence policy and 
                general practices.
            ``(5) Documentation.--
                    ``(A) In general.--A student who submits an 
                application for readmission to an institution of higher 
                education under this section shall provide to the 
                institution of higher education documentation to 
                establish that--
                          ``(i) the student has not exceeded the service 
                      limitations established under this section; and
                          ``(ii) the student's eligibility for 
                      readmission has not been terminated due to an 
                      exception in subsection (d).
                    ``(B) Prohibited documentation demands.--An 
                institution of higher education may not delay or attempt 
                to avoid a readmission of a student under this section

[[Page 122 STAT. 3293]]

                by demanding documentation that does not exist, or is 
                not readily available, at the time of readmission.
            ``(6) No change in academic status.--A student who is 
        readmitted to an institution of higher education under this 
        section shall be readmitted with the same academic status as 
        such student had when such student last attended the institution 
        of higher education.

    ``(d) Exception From Readmission Eligibility.--A student's 
eligibility for readmission to an institution of higher education under 
this section by reason of such student's service in the uniformed 
services terminates upon the occurrence of any of the following events:
            ``(1) A separation of such person from the Armed Forces 
        (including the National Guard and Reserves) with a dishonorable 
        or bad conduct discharge.
            ``(2) A dismissal of such person permitted under section 
        1161(a) of title 10, United States Code.
            ``(3) A dropping of such person from the rolls pursuant to 
        section 1161(b) of title 10, United States Code.''.
SEC. 488. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR 
                        STUDENTS.

    (a) Information Dissemination Activities.--Section 485(a) (20 U.S.C. 
1092(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (G)--
                          (i) by striking ``program, and'' and inserting 
                      ``program,''; and
                          (ii) by inserting ``, and (iv) any plans by 
                      the institution for improving the academic program 
                      of the institution'' after ``instructional 
                      personnel''; and
                    (B) by striking subparagraph (M) and inserting the 
                following:
                    ``(M) the terms and conditions of the loans that 
                students receive under parts B, D, and E;'';
                    (C) in subparagraph (N), by striking ``and'' after 
                the semicolon;
                    (D) in subparagraph (O), by striking the period and 
                inserting a semicolon; and
                    (E) by adding at the end the following:
                    ``(P) institutional policies and sanctions related 
                to copyright infringement, including--
                          ``(i) an annual disclosure that explicitly 
                      informs students that unauthorized distribution of 
                      copyrighted material, including unauthorized peer-
                      to-peer file sharing, may subject the students to 
                      civil and criminal liabilities;
                          ``(ii) a summary of the penalties for 
                      violation of Federal copyright laws; and
                          ``(iii) a description of the institution's 
                      policies with respect to unauthorized peer-to-peer 
                      file sharing, including disciplinary actions that 
                      are taken against students who engage in 
                      unauthorized distribution of copyrighted materials 
                      using the institution's information technology 
                      system;

[[Page 122 STAT. 3294]]

                    ``(Q) student body diversity at the institution, 
                including information on the percentage of enrolled, 
                full-time students who--
                          ``(i) are male;
                          ``(ii) are female;
                          ``(iii) receive a Federal Pell Grant; and
                          ``(iv) are a self-identified member of a major 
                      racial or ethnic group;
                    ``(R) the placement in employment of, and types of 
                employment obtained by, graduates of the institution's 
                degree or certificate programs, gathered from such 
                sources as alumni surveys, student satisfaction surveys, 
                the National Survey of Student Engagement, the Community 
                College Survey of Student Engagement, State data 
                systems, or other relevant sources;
                    ``(S) the types of graduate and professional 
                education in which graduates of the institution's four-
                year degree programs enrolled, gathered from such 
                sources as alumni surveys, student satisfaction surveys, 
                the National Survey of Student Engagement, State data 
                systems, or other relevant sources;
                    ``(T) the fire safety report prepared by the 
                institution pursuant to subsection (i);
                    ``(U) the retention rate of certificate- or degree-
                seeking, first-time, full-time, undergraduate students 
                entering such institution; and
                    ``(V) institutional policies regarding 
                vaccinations.''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) For purposes of this section, institutions may--
                    ``(A) exclude from the information disclosed in 
                accordance with subparagraph (L) of paragraph (1) the 
                completion or graduation rates of students who leave 
                school to serve in the Armed Forces, on official church 
                missions, or with a recognized foreign aid service of 
                the Federal Government; or
                    ``(B) in cases where the students described in 
                subparagraph (A) represent 20 percent or more of the 
                certificate- or degree-seeking, full-time, undergraduate 
                students at the institution, recalculate the completion 
                or graduation rates of such students by excluding from 
                the calculation described in paragraph (3) the time 
                period such students were not enrolled due to their 
                service in the Armed Forces, on official church 
                missions, or with a recognized foreign aid service of 
                the Federal Government.''; and
            (3) by adding at the end the following:
            ``(7)(A)(i) Subject to clause (ii), the information 
        disseminated under paragraph (1)(L), or reported under 
        subsection (e), shall be disaggregated by gender, by each major 
        racial and ethnic subgroup, by recipients of a Federal Pell 
        Grant, by recipients of a loan made under part B or D (other 
        than a loan made under section 428H or a Federal Direct 
        Unsubsidized Stafford Loan) who did not receive a Federal Pell 
        Grant, and by recipients of neither a Federal Pell Grant nor a 
        loan made under part B or D (other than a loan made under 
        section 428H or a Federal Direct Unsubsidized Stafford Loan), if 
        the number of students in such subgroup or with such status is 
        sufficient to yield statistically reliable information and

[[Page 122 STAT. 3295]]

        reporting will not reveal personally identifiable information 
        about an individual student. If such number is not sufficient 
        for such purposes, then the institution shall note that the 
        institution enrolled too few of such students to so disclose or 
        report with confidence and confidentiality.
            ``(ii) The requirements of clause (i) shall not apply to 
        two-year, degree-granting institutions of higher education until 
        academic year 2011-2012.
            ``(B)(i) <<NOTE: Deadline. Recommen- dations.>> In order to 
        assist two-year degree-granting institutions of higher education 
        in meeting the requirements of paragraph (1)(L) and subsection 
        (e), the Secretary, in consultation with the Commissioner for 
        Education Statistics, shall, not later than 90 days after the 
        date of enactment of the Higher Education Opportunity Act, 
        convene a group of representatives from diverse institutions of 
        higher education, experts in the field of higher education 
        policy, state higher education officials, students, and other 
        stakeholders in the higher education community, to develop 
        recommendations regarding the accurate calculation and reporting 
        of the information required to be disseminated or reported under 
        paragraph (1)(L) and subsection (e) by two-year, degree-granting 
        institutions of higher education. In developing such 
        recommendations, the group of representatives shall consider the 
        mission and role of two-year degree-granting institutions of 
        higher education, and may recommend additional or alternative 
        measures of student success for such institutions in light of 
        the mission and role of such institutions.
            ``(ii) <<NOTE: Deadline.>> The Secretary shall widely 
        disseminate the recommendations required under this subparagraph 
        to two-year, degree-granting institutions of higher education, 
        the public, and the authorizing committees not later than 18 
        months after the first meeting of the group of representatives 
        convened under clause (i).
            ``(iii) The Secretary shall use the recommendations from the 
        group of representatives convened under clause (i) to provide 
        technical assistance to two-year, degree-granting institutions 
        of higher education in meeting the requirements of paragraph 
        (1)(L) and subsection (e).
            ``(iv) The Secretary may modify the information required to 
        be disseminated or reported under paragraph (1)(L) or subsection 
        (e) by a two-year, degree-granting institution of higher--
                    ``(I) based on the recommendations received under 
                this subparagraph from the group of representatives 
                convened under clause (i);
                    ``(II) to include additional or alternative measures 
                of student success if the goals of the provisions of 
                paragraph (1)(L) and subsection (e) can be met through 
                additional means or comparable alternatives; and
                    ``(III) <<NOTE: Time period.>> during the period 
                beginning on the date of enactment of the Higher 
                Education Opportunity Act, and ending on June 30, 
                2011.''.

    (b) Exit Counseling.--Subsection (b)(1)(A) of section 485 (20 U.S.C. 
1092(b)(1)(A)) is amended to read as follows:
    ``(b) Exit Counseling for Borrowers.--(1)(A) Each eligible 
institution shall, through financial aid offices or otherwise, provide 
counseling to borrowers of loans that are made, insured, or guaranteed 
under part B (other than loans made pursuant to section

[[Page 122 STAT. 3296]]

428C or loans under section 428B made on behalf of a student) or made 
under part D (other than Federal Direct Consolidation Loans or Federal 
Direct PLUS Loans made on behalf of a student) or made under part E of 
this title prior to the completion of the course of study for which the 
borrower enrolled at the institution or at the time of departure from 
such institution. The counseling required by this subsection shall 
include--
            ``(i) information on the repayment plans available, 
        including a description of the different features of each plan 
        and sample information showing the average anticipated monthly 
        payments, and the difference in interest paid and total 
        payments, under each plan;
            ``(ii) debt management strategies that are designed to 
        facilitate the repayment of such indebtedness;
            ``(iii) an explanation that the borrower has the options to 
        prepay each loan, pay each loan on a shorter schedule, and 
        change repayment plans;
            ``(iv) for any loan forgiveness or cancellation provision of 
        this title, a general description of the terms and conditions 
        under which the borrower may obtain full or partial forgiveness 
        or cancellation of the principal and interest, and a copy of the 
        information provided by the Secretary under section 485(d);
            ``(v) for any forbearance provision of this title, a general 
        description of the terms and conditions under which the borrower 
        may defer repayment of principal or interest or be granted 
        forbearance, and a copy of the information provided by the 
        Secretary under section 485(d);
            ``(vi) the consequences of defaulting on a loan, including 
        adverse credit reports, delinquent debt collection procedures 
        under Federal law, and litigation;
            ``(vii) information on the effects of using a consolidation 
        loan under section 428C or a Federal Direct Consolidation Loan 
        to discharge the borrower's loans under parts B, D, and E, 
        including at a minimum--
                    ``(I) the effects of consolidation on total interest 
                to be paid, fees to be paid, and length of repayment;
                    ``(II) the effects of consolidation on a borrower's 
                underlying loan benefits, including grace periods, loan 
                forgiveness, cancellation, and deferment opportunities;
                    ``(III) the option of the borrower to prepay the 
                loan or to change repayment plans; and
                    ``(IV) that borrower benefit programs may vary among 
                different lenders;
            ``(viii) a general description of the types of tax benefits 
        that may be available to borrowers; and
            ``(ix) a notice to borrowers about the availability of the 
        National Student Loan Data System and how the system can be used 
        by a borrower to obtain information on the status of the 
        borrower's loans; and''.

    (c) Departmental Publication of Descriptions of Assistance 
Programs.--Section 485(d) (20 U.S.C. 1092(d)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting after ``under this title.'' the 
                following: ``Such information shall also include 
                information on the various payment options available for 
                student loans, including income-sensitive and income-
                based repayment plans for loans made, insured, or 
                guaranteed under part

[[Page 122 STAT. 3297]]

                B and income-contingent and income-based repayment plans 
                for loans made under part D.''; and
                    (B) by inserting after ``tax-exempt organization.'' 
                the following: ``The Secretary shall also provide 
                information on loan forbearance, including the increase 
                in debt that results from capitalization of interest.''; 
                and
            (2) by adding at the end the following:

    ``(4) <<NOTE: Public information.>> The Secretary shall widely 
publicize the location of the information described in paragraph (1) 
among the public, eligible institutions, and eligible lenders, and 
promote the use of such information by prospective students, enrolled 
students, families of prospective and enrolled students, and 
borrowers.''.

    (d) Disclosure of Athletically Related Graduation Rates.--Section 
485(e)(3) (20 U.S.C. 1092(e)(3)) is amended to read as follows:
            ``(3) For purposes of this subsection, institutions may--
                    ``(A) exclude from the reporting requirements under 
                paragraphs (1) and (2) the completion or graduation 
                rates of students and student athletes who leave school 
                to serve in the Armed Forces, on official church 
                missions, or with a recognized foreign aid service of 
                the Federal Government; or
                    ``(B) in cases where the students described in 
                subparagraph (A) represent 20 percent or more of the 
                certificate- or degree-seeking, full-time, undergraduate 
                students at the institution, calculate the completion or 
                graduation rates of such students by excluding from the 
                calculations described in paragraph (1) the time period 
                such students were not enrolled due to their service in 
                the Armed Forces, on official church missions, or with a 
                recognized foreign aid service of the Federal 
                Government.''.

    (e) Criminal Offenses Reported.--Section 485(f) (20 U.S.C. 1092(f)) 
is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``, other than a foreign institution higher 
                education,'' after ``under this title'';
                    (B) in subparagraph (C), by striking clauses (i) and 
                (ii) and inserting the following:
                          ``(i) the law enforcement authority of campus 
                      security personnel;
                          ``(ii) the working relationship of campus 
                      security personnel with State and local law 
                      enforcement agencies, including whether the 
                      institution has agreements with such agencies, 
                      such as written memoranda of understanding, for 
                      the investigation of alleged criminal offenses; 
                      and
                          ``(iii) policies which encourage accurate and 
                      prompt reporting of all crimes to the campus 
                      police and the appropriate law enforcement 
                      agencies.'';
                    (C) in subparagraph (F)(ii)--
                          (i) by striking ``clause (i), and'' and 
                      inserting ``clause (i), of larceny-theft, simple 
                      assault, intimidation, and destruction, damage, or 
                      vandalism of property, and of''; and
                          (ii) by inserting a comma after ``any 
                      person''; and

[[Page 122 STAT. 3298]]

                    (D) by adding at the end the following new 
                subparagraph:
                    ``(J) A statement of current campus policies 
                regarding immediate emergency response and evacuation 
                procedures, including the use of electronic and cellular 
                communication (if appropriate), which policies shall 
                include procedures to--
                          ``(i) immediately notify the campus community 
                      upon the confirmation of a significant emergency 
                      or dangerous situation involving an immediate 
                      threat to the health or safety of students or 
                      staff occurring on the campus, as defined in 
                      paragraph (6), unless issuing a notification will 
                      compromise efforts to contain the emergency;
                          ``(ii) publicize emergency response and 
                      evacuation procedures on an annual basis in a 
                      manner designed to reach students and staff; and
                          ``(iii) test emergency response and evacuation 
                      procedures on an annual basis.'';
            (2) by redesignating paragraph (15) as paragraph (18); and
            (3) by inserting after paragraph (14) the following:
            ``(15) <<NOTE: Deadline. Reports.>> The Secretary shall 
        annually report to the authorizing committees regarding 
        compliance with this subsection by institutions of higher 
        education, including an up-to-date report on the Secretary's 
        monitoring of such compliance.
            ``(16) The Secretary may seek the advice and counsel of the 
        Attorney General concerning the development, and dissemination 
        to institutions of higher education, of best practices 
        information about campus safety and emergencies.
            ``(17) Nothing in this subsection shall be construed to 
        permit an institution, or an officer, employee, or agent of an 
        institution, participating in any program under this title to 
        retaliate, intimidate, threaten, coerce, or otherwise 
        discriminate against any individual with respect to the 
        implementation of any provision of this subsection.''.

    (f) Report.--Section 485(g)(4) (20 U.S.C. 1092(g)(4)) is amended--
            (1) by striking subparagraph (B);
            (2) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (B) and (C), respectively;
            (3) in subparagraph (B) (as redesignated by paragraph (2)), 
        by striking ``and the report to Congress described in 
        subparagraph (B)''; and
            (4) in subparagraph (C) (as redesignated by paragraph (2)), 
        by striking ``the information reported under subparagraph (B) 
        and''.

    (g) Additional Requirements.--Section 485 (20 U.S.C. 1092) is 
further amended by adding at the end the following new subsections:
    ``(h) Transfer of Credit Policies.--
            ``(1) Disclosure.--Each institution of higher education 
        participating in any program under this title shall publicly 
        disclose, in a readable and comprehensible manner, the transfer 
        of credit policies established by the institution which shall 
        include a statement of the institution's current transfer of 
        credit policies that includes, at a minimum--

[[Page 122 STAT. 3299]]

                    ``(A) any established criteria the institution uses 
                regarding the transfer of credit earned at another 
                institution of higher education; and
                    ``(B) a list of institutions of higher education 
                with which the institution has established an 
                articulation agreement.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to--
                    ``(A) authorize the Secretary or the National 
                Advisory Committee on Institutional Quality and 
                Integrity to require particular policies, procedures, or 
                practices by institutions of higher education with 
                respect to transfer of credit;
                    ``(B) authorize an officer or employee of the 
                Department to exercise any direction, supervision, or 
                control over the curriculum, program of instruction, 
                administration, or personnel of any institution of 
                higher education, or over any accrediting agency or 
                association;
                    ``(C) limit the application of the General Education 
                Provisions Act; or
                    ``(D) create any legally enforceable right on the 
                part of a student to require an institution of higher 
                education to accept a transfer of credit from another 
                institution.

    ``(i) Disclosure of Fire Safety Standards and Measures.--
            ``(1) Annual fire safety reports on student housing 
        required.-- <<NOTE: Publication.>> Each eligible institution 
        participating in any program under this title that maintains on-
        campus student housing facilities shall, on an annual basis, 
        publish a fire safety report, which shall contain information 
        with respect to the campus fire safety practices and standards 
        of that institution, including--
                    ``(A) statistics concerning the following in each 
                on-campus student housing facility during the most 
                recent calendar years for which data are available:
                          ``(i) the number of fires and the cause of 
                      each fire;
                          ``(ii) the number of injuries related to a 
                      fire that result in treatment at a medical 
                      facility;
                          ``(iii) the number of deaths related to a 
                      fire; and
                          ``(iv) the value of property damage caused by 
                      a fire;
                    ``(B) a description of each on-campus student 
                housing facility fire safety system, including the fire 
                sprinkler system;
                    ``(C) the number of regular mandatory supervised 
                fire drills;
                    ``(D) policies or rules on portable electrical 
                appliances, smoking, and open flames (such as candles), 
                procedures for evacuation, and policies regarding fire 
                safety education and training programs provided to 
                students, faculty, and staff; and
                    ``(E) plans for future improvements in fire safety, 
                if determined necessary by such institution.
            ``(2) Report to the secretary.--Each eligible institution 
        participating in any program under this title shall, on an 
        annual basis, submit to the Secretary a copy of the statistics 
        required to be made available under paragraph (1)(A).

[[Page 122 STAT. 3300]]

            ``(3) Current information to campus community.--Each 
        eligible institution participating in any program under this 
        title shall--
                    ``(A) <<NOTE: Records.>> make, keep, and maintain a 
                log, recording all fires in on-campus student housing 
                facilities, including the nature, date, time, and 
                general location of each fire; and
                    ``(B) <<NOTE: Deadline. Reports.>> make annual 
                reports to the campus community on such fires.
            ``(4) Responsibilities of the secretary.-- 
        <<NOTE: Public. information.>> The Secretary shall--
                    ``(A) make the statistics submitted under paragraph 
                (1)(A) to the Secretary available to the public; and
                    ``(B) in coordination with nationally recognized 
                fire organizations and representatives of institutions 
                of higher education, representatives of associations of 
                institutions of higher education, and other 
                organizations that represent and house a significant 
                number of students--
                          ``(i) identify exemplary fire safety policies, 
                      procedures, programs, and practices, including the 
                      installation, to the technical standards of the 
                      National Fire Protection Association, of fire 
                      detection, prevention, and protection technologies 
                      in student housing, dormitories, and other 
                      buildings;
                          ``(ii) disseminate the exemplary policies, 
                      procedures, programs and practices described in 
                      clause (i) to the Administrator of the United 
                      States Fire Administration;
                          ``(iii) make available to the public 
                      information concerning those policies, procedures, 
                      programs, and practices that have proven effective 
                      in the reduction of fires; and
                          ``(iv) develop a protocol for institutions to 
                      review the status of their fire safety systems.
            ``(5) Rules of construction.--Nothing in this subsection 
        shall be construed to--
                    ``(A) authorize the Secretary to require particular 
                policies, procedures, programs, or practices by 
                institutions of higher education with respect to fire 
                safety, other than with respect to the collection, 
                reporting, and dissemination of information required by 
                this subsection;
                    ``(B) affect section 444 of the General Education 
                Provisions Act (the Family Educational Rights and 
                Privacy Act of 1974) or the regulations issued under 
                section 264 of the Health Insurance Portability and 
                Accountability Act of 1996 (42 U.S.C. 1320d-2 note);
                    ``(C) create a cause of action against any 
                institution of higher education or any employee of such 
                an institution for any civil liability; or
                    ``(D) establish any standard of care.
            ``(6) Compliance report.--The Secretary shall annually 
        report to the authorizing committees regarding compliance with 
        this subsection by institutions of higher education, including 
        an up-to-date report on the Secretary's monitoring of such 
        compliance.
            ``(7) Evidence.--Notwithstanding any other provision of law, 
        evidence regarding compliance or noncompliance with this 
        subsection shall not be admissible as evidence in any proceeding

[[Page 122 STAT. 3301]]

        of any court, agency, board, or other entity, except with 
        respect to an action to enforce this subsection.

    ``(j) Missing <<NOTE: Notification.>> Person Procedures.--
            ``(1) Option and procedures.--Each institution of higher 
        education that provides on-campus housing and participates in 
        any program under this title shall--
                    ``(A) establish a missing student notification 
                policy for students who reside in on-campus housing 
                that--
                          ``(i) informs each such student that such 
                      student has the option to identify an individual 
                      to be contacted by the institution not later than 
                      24 hours after the time that the student is 
                      determined missing in accordance with official 
                      notification procedures established by the 
                      institution under subparagraph (B);
                          ``(ii) provides each such student a means to 
                      register confidential contact information in the 
                      event that the student is determined to be missing 
                      for a period of more than 24 hours;
                          ``(iii) advises each such student who is under 
                      18 years of age, and not an emancipated 
                      individual, that the institution is required to 
                      notify a custodial parent or guardian not later 24 
                      hours after the time that the student is 
                      determined to be missing in accordance with such 
                      procedures;
                          ``(iv) informs each such residing student that 
                      the institution will notify the appropriate law 
                      enforcement agency not later than 24 hours after 
                      the time that the student is determined missing in 
                      accordance with such procedures; and
                          ``(v) requires, if the campus security or law 
                      enforcement personnel has been notified and makes 
                      a determination that a student who is the subject 
                      of a missing person report has been missing for 
                      more than 24 hours and has not returned to the 
                      campus, the institution to initiate the emergency 
                      contact procedures in accordance with the 
                      student's designation; and
                    ``(B) establish official notification procedures for 
                a missing student who resides in on-campus housing 
                that--
                          ``(i) includes procedures for official 
                      notification of appropriate individuals at the 
                      institution that such student has been missing for 
                      more than 24 hours;
                          ``(ii) requires any official missing person 
                      report relating to such student be referred 
                      immediately to the institution's police or campus 
                      security department; and
                          ``(iii) if, on investigation of the official 
                      report, such department determines that the 
                      missing student has been missing for more than 24 
                      hours, requires--
                                    ``(I) such department to contact the 
                                individual identified by such student 
                                under subparagraph (A)(i);
                                    ``(II) if such student is under 18 
                                years of age, and not an emancipated 
                                individual, the institution to 
                                immediately contact the custodial parent 
                                or legal guardian of such student; and

[[Page 122 STAT. 3302]]

                                    ``(III) if subclauses (I) or (II) do 
                                not apply to a student determined to be 
                                a missing person, inform the appropriate 
                                law enforcement agency.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed--
                    ``(A) to provide a private right of action to any 
                person to enforce any provision of this subsection; or
                    ``(B) to create a cause of action against any 
                institution of higher education or any employee of the 
                institution for any civil liability.

    ``(k) Notice to Students Concerning Penalties for Drug Violations.--
            ``(1) Notice upon enrollment.--Each institution of higher 
        education shall provide to each student, upon enrollment, a 
        separate, clear, and conspicuous written notice that advises the 
        student of the penalties under section 484(r).
            ``(2) Notice after loss of eligibility.--An institution of 
        higher education shall provide in a timely manner to each 
        student who has lost eligibility for any grant, loan, or work-
        study assistance under this title as a result of the penalties 
        listed under 484(r)(1) a separate, clear, and conspicuous 
        written notice that notifies the student of the loss of 
        eligibility and advises the student of the ways in which the 
        student can regain eligibility under section 484(r)(2).

    ``(l) Entrance Counseling for Borrowers.--
            ``(1) Disclosure required prior to disbursement.--
                    ``(A) In general.--Each eligible institution shall, 
                at or prior to the time of a disbursement to a first-
                time borrower of a loan made, insured, or guaranteed 
                under part B (other than a loan made pursuant to section 
                428C or a loan made on behalf of a student pursuant to 
                section 428B) or made under part D (other than a Federal 
                Direct Consolidation Loan or a Federal Direct PLUS loan 
                made on behalf of a student), ensure that the borrower 
                receives comprehensive information on the terms and 
                conditions of the loan and of the responsibilities the 
                borrower has with respect to such loan in accordance 
                with subparagraph (B). Such information--
                          ``(i) shall be provided in a simple and 
                      understandable manner; and
                          ``(ii) may be provided--
                                    ``(I) during an entrance counseling 
                                session conduction in person;
                                    ``(II) on a separate written form 
                                provided to the borrower that the 
                                borrower signs and returns to the 
                                institution; or
                                    ``(III) online, with the borrower 
                                acknowledging receipt of the 
                                information.
                    ``(B) Use of interactive programs.--The Secretary 
                shall encourage institutions to carry out the 
                requirements of subparagraph (A) through the use of 
                interactive programs that test the borrower's 
                understanding of the terms and conditions of the 
                borrower's loans under part B or D, using simple and 
                understandable language and clear formatting.

[[Page 122 STAT. 3303]]

            ``(2) Information to be provided.--The information to be 
        provided to the borrower under paragraph (1)(A) shall include 
        the following:
                    ``(A) To the extent practicable, the effect of 
                accepting the loan to be disbursed on the eligibility of 
                the borrower for other forms of student financial 
                assistance.
                    ``(B) An explanation of the use of the master 
                promissory note.
                    ``(C) Information on how interest accrues and is 
                capitalized during periods when the interest is not paid 
                by either the borrower or the Secretary.
                    ``(D) In the case of a loan made under section 428B 
                or 428H, a Federal Direct PLUS Loan, or a Federal Direct 
                Unsubsidized Stafford Loan, the option of the borrower 
                to pay the interest while the borrower is in school.
                    ``(E) The definition of half-time enrollment at the 
                institution, during regular terms and summer school, if 
                applicable, and the consequences of not maintaining 
                half-time enrollment.
                    ``(F) An explanation of the importance of contacting 
                the appropriate offices at the institution of higher 
                education if the borrower withdraws prior to completing 
                the borrower's program of study so that the institution 
                can provide exit counseling, including information 
                regarding the borrower's repayment options and loan 
                consolidation.
                    ``(G) Sample monthly repayment amounts based on--
                          ``(i) a range of levels of indebtedness of--
                                    ``(I) borrowers of loans under 
                                section 428 or 428H; and
                                    ``(II) as appropriate, graduate 
                                borrowers of loans under section 428, 
                                428B, or 428H; or
                          ``(ii) the average cumulative indebtedness of 
                      other borrowers in the same program as the 
                      borrower at the same institution.
                    ``(H) The obligation of the borrower to repay the 
                full amount of the loan, regardless of whether the 
                borrower completes or does not complete the program in 
                which the borrower is enrolled within the regular time 
                for program completion.
                    ``(I) The likely consequences of default on the 
                loan, including adverse credit reports, delinquent debt 
                collection procedures under Federal law, and litigation.
                    ``(J) Information on the National Student Loan Data 
                System and how the borrower can access the borrower's 
                records.
                    ``(K) The name of and contact information for the 
                individual the borrower may contact if the borrower has 
                any questions about the borrower's rights and 
                responsibilities or the terms and conditions of the 
                loan.''.
SEC. 489. NATIONAL STUDENT LOAN DATA SYSTEM.

    Section 485B (20 U.S.C. 1092b) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (6) through (10) as 
                paragraphs (7) through (11), respectively;

[[Page 122 STAT. 3304]]

                    (B) in paragraph (5) (as added by Public Law 101-
                610), by striking ``effectiveness.'' and inserting 
                ``effectiveness;''; and
                    (C) by redesignating paragraph (5) (as added by 
                Public Law 101-234) as paragraph (6);
            (2) by redesignating subsections (d) through (g) as 
        subsections (e) through (h), respectively; and
            (3) by inserting after subsection (c) the following:

    ``(d) Principles for Administering the Data System.--In managing the 
National Student Loan Data System, the Secretary shall take actions 
necessary to maintain confidence in the data system, including, at a 
minimum--
            ``(1) ensuring that the primary purpose of access to the 
        data system by guaranty agencies, eligible lenders, and eligible 
        institutions of higher education is for legitimate program 
        operations, such as the need to verify the eligibility of a 
        student, potential student, or parent for loans under part B, D, 
        or E;
            ``(2) prohibiting nongovernmental researchers and policy 
        analysts from accessing personally identifiable information;
            ``(3) creating a disclosure form for students and potential 
        students that is distributed when such students complete the 
        common financial reporting form under section 483, and as a part 
        of the exit counseling process under section 485(b), that--
                    ``(A) informs the students that any title IV grant 
                or loan the students receive will be included in the 
                National Student Loan Data System, and instructs the 
                students on how to access that information;
                    ``(B) describes the categories of individuals or 
                entities that may access the data relating to such grant 
                or loan through the data system, and for what purposes 
                access is allowed;
                    ``(C) defines and explains the categories of 
                information included in the data system;
                    ``(D) provides a summary of the provisions of 
                section 444 of the General Education Provisions Act (the 
                Family Educational Rights and Privacy Act of 1974) and 
                other applicable Federal privacy statutes, and a 
                statement of the students' rights and responsibilities 
                with respect to such statutes;
                    ``(E) explains the measures taken by the Department 
                to safeguard the students' data; and
                    ``(F) includes other information as determined 
                appropriate by the Secretary;
            ``(4) requiring guaranty agencies, eligible lenders, and 
        eligible institutions of higher education that enter into an 
        agreement with a potential student, student, or parent of such 
        student regarding a loan under part B, D, or E, to inform the 
        student or parent that such loan shall be--
                    ``(A) submitted to the data system; and
                    ``(B) accessible to guaranty agencies, eligible 
                lenders, and eligible institutions of higher education 
                determined by the Secretary to be authorized users of 
                the data system;
            ``(5) regularly reviewing the data system to--
                    ``(A) delete inactive users from the data system;

[[Page 122 STAT. 3305]]

                    ``(B) ensure that the data in the data system are 
                not being used for marketing purposes; and
                    ``(C) monitor the use of the data system by guaranty 
                agencies and eligible lenders to determine whether an 
                agency or lender is accessing the records of students in 
                which the agency or lender has no existing financial 
                interest; and
            ``(6) developing standardized protocols for limiting access 
        to the data system that include--
                    ``(A) collecting data on the usage of the data 
                system to monitor whether access has been or is being 
                used contrary to the purposes of the data system;
                    ``(B) defining the steps necessary for determining 
                whether, and how, to deny or restrict access to the data 
                system; and
                    ``(C) determining the steps necessary to reopen 
                access to the data system following a denial or 
                restriction of access.''; and
            (4) by striking subsection (e) (as redesignated by paragraph 
        (1)) and inserting the following:

    ``(e) Reports to Congress.--
            ``(1) Annual report.--Not later than September 30 of each 
        fiscal year, the Secretary shall prepare and submit to the 
        authorizing committees a report describing--
                    ``(A) the effectiveness of existing privacy 
                safeguards in protecting student and parent information 
                in the data system;
                    ``(B) the success of any new authorization protocols 
                in more effectively preventing abuse of the data system;
                    ``(C) the ability of the Secretary to monitor how 
                the system is being used, relative to the intended 
                purposes of the data system; and
                    ``(D) any protocols developed under subsection 
                (d)(6) during the preceding fiscal year.
            ``(2) Study.--
                    ``(A) In general.--The Secretary shall conduct a 
                study regarding--
                          ``(i) available mechanisms for providing 
                      students and parents with the ability to opt in or 
                      opt out of allowing eligible lenders to access 
                      their records in the National Student Loan Data 
                      System; and
                          ``(ii) appropriate protocols for limiting 
                      access to the data system, based on the risk 
                      assessment required under subchapter III of 
                      chapter 35 of title 44, United States Code.
                    ``(B) Submission of study.--Not later than three 
                years after the date of enactment of the Higher 
                Education Opportunity Act, the Secretary shall prepare 
                and submit a report on the findings of the study under 
                subparagraph (A) to the authorizing committees.''.
SEC. 490. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.

    Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 485D (20 U.S.C. 1092c) the following:
``SEC. 485E. <<NOTE: 20 USC 1092f.>> EARLY AWARENESS OF FINANCIAL 
                          AID ELIGIBILITY.

    ``(a) In General.--The Secretary shall implement, in cooperation 
with States, institutions of higher education, secondary schools,

[[Page 122 STAT. 3306]]

early intervention and outreach programs under this title, other 
agencies and organizations involved in student financial assistance and 
college access, public libraries, community centers, employers, and 
businesses, a comprehensive system of early financial aid information in 
order to provide students and families with early information about 
financial aid and early estimates of such students' eligibility for 
financial aid from multiple sources. Such system shall include the 
activities described in subsection (b).
    ``(b) Communication of Availability of Aid and Aid Eligibility.--
            ``(1) Students who receive benefits.--The Secretary shall--
                    ``(A) <<NOTE: Notification.>> make special efforts 
                to notify students who receive or are eligible to 
                receive benefits under a Federal means-tested benefit 
                program (including the supplemental nutrition assistance 
                program under the Food and Nutrition Act of 2008 (7 
                U.S.C. 2011 et seq.)), or another such benefit program 
                as determined by the Secretary, of such students' 
                potential eligibility for a maximum Federal Pell Grant 
                under subpart 1 of part A; and
                    ``(B) disseminate such informational materials, that 
                are part of the system described in subsection (a), as 
                the Secretary determines necessary.
            ``(2) Secondary school students.-- 
        <<NOTE: Notification.>> The Secretary, in cooperation with 
        States, institutions of higher education, other organizations 
        involved in college access and student financial aid, secondary 
        schools, and programs under this title that serve secondary 
        school students, shall make special efforts to notify students 
        in secondary school and their families, as early as possible but 
        not later than such students' junior year of secondary school, 
        of the availability of financial aid under this title and shall 
        provide nonbinding estimates of the amounts of grant and loan 
        aid that an individual may be eligible for under this title upon 
        completion of an application form under section 483(a). The 
        Secretary shall ensure that such information is as accurate as 
        possible and that such information is provided in an age-
        appropriate format using dissemination mechanisms suitable for 
        students in secondary school.
            ``(3) Adult learners.--The Secretary, in cooperation with 
        States, institutions of higher education, other organizations 
        involved in college access and student financial aid, employers, 
        workforce investment boards, and public libraries, shall make 
        special efforts to provide individuals who would qualify as 
        independent students, as defined in section 480(d), with 
        information regarding the availability of financial aid under 
        this title and with nonbinding estimates of the amounts of grant 
        and loan aid that an individual may be eligible for under this 
        title upon completion of an application form under section 
        483(a). The Secretary shall ensure that such information--
                    ``(A) is as accurate as possible;
                    ``(B) includes specific information regarding the 
                availability of financial aid for students qualified as 
                independent students, as defined in section 480(d); and
                    ``(C) uses dissemination mechanisms suitable for 
                adult learners.

[[Page 122 STAT. 3307]]

            ``(4) Public <<NOTE: Deadline.>> awareness campaign.--Not 
        later than two years after the date of enactment of the Higher 
        Education Opportunity Act, the Secretary, in coordination with 
        States, institutions of higher education, early intervention and 
        outreach programs under this title, other agencies and 
        organizations involved in college access and student financial 
        aid, secondary schools, organizations that provide services to 
        individuals that are or were homeless, to individuals in foster 
        care, or to other disconnected individuals, local educational 
        agencies, public libraries, community centers, businesses, 
        employers, employment services, workforce investment boards, and 
        movie theaters, shall implement a public awareness campaign in 
        order to increase national awareness regarding the availability 
        of financial aid under this title. The public awareness campaign 
        shall disseminate accurate information regarding the 
        availability of financial aid under this title and shall be 
        implemented, to the extent practicable, using a variety of 
        media, including print, television, radio, and the Internet. The 
        Secretary shall design and implement the public awareness 
        campaign based upon relevant independent research and the 
        information and dissemination strategies found most effective in 
        implementing paragraphs (1) through (3).''.
SEC. 491. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.

    Section 486(f)(3) (20 U.S.C. 1093(f)(3)) is amended--
            (1) in subparagraph (B), by redesignating clauses (i) and 
        (ii) as subparagraphs (A) and (B), respectively, and adjusting 
        the margins accordingly; and
            (2) by striking ``Reports.--'' and all that follows through 
        ``House of Representatives on an annual basis'' and inserting 
        ``Annual reports.--The Secretary shall provide reports to the 
        authorizing committees on an annual basis''.
SEC. 492. ARTICULATION AGREEMENTS.

    Part G of title IV is further amended by inserting after section 486 
(20 U.S.C. 1093) the following new section:
``SEC. 486A. <<NOTE: 20 USC 1093a.>> ARTICULATION AGREEMENTS.

    ``(a) Definition.--In this section, the term `articulation 
agreement' means an agreement between or among institutions of higher 
education that specifies the acceptability of courses in transfer toward 
meeting specific degree or program requirements.
    ``(b) Program To Encourage Articulation Agreements.--
            ``(1) Program established.--The Secretary shall carry out a 
        program for States, in cooperation with public institutions of 
        higher education, to develop, enhance, and implement 
        comprehensive articulation agreements between or among such 
        institutions in a State, and (to the extent practicable) across 
        State lines, by 2010. Such <<NOTE: Public information. Web 
        site.>>  articulation agreements shall be made widely and 
        publicly available on the websites of States and such 
        institutions. In developing, enhancing, and implementing 
        articulation agreements, States and public institutions of 
        higher education may employ strategies, where applicable, 
        including--
                    ``(A) common course numbering;
                    ``(B) a general education core curriculum;
                    ``(C) management systems regarding course 
                equivalency, transfer of credit, and articulation; and

[[Page 122 STAT. 3308]]

                    ``(D) other strategies identified by the Secretary.
            ``(2) Technical assistance provided.--The Secretary shall 
        provide technical assistance to States and public institutions 
        of higher education for the purposes of developing and 
        implementing articulation agreements in accordance with this 
        subsection.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to authorize the Secretary to require 
        particular policies, procedures, or practices by institutions of 
        higher education with respect to articulation agreements.''.
SEC. 493. PROGRAM PARTICIPATION AGREEMENTS.

    (a) Program Participation Agreement Requirements.--
            (1) Voter registration; 90-10 rule; code of conduct; 
        disciplinary proceedings; preferred lender lists; private 
        education loan certification; copyrighted material.--
                    (A) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) 
                is amended--
                          (i) in paragraph (23)--
                                    (I) by moving subparagraph (C) two 
                                ems to the left; and
                                    (II) by adding at the end the 
                                following:
                    ``(D) The institution shall be considered in 
                compliance with the requirements of subparagraph (A) for 
                each student to whom the institution electronically 
                transmits a message containing a voter registration form 
                acceptable for use in the State in which the institution 
                is located, or an Internet address where such a form can 
                be downloaded, if such information is in an electronic 
                message devoted exclusively to voter registration.''; 
                and
                          (ii) by adding at the end the following:
            ``(24) In the case of a proprietary institution of higher 
        education (as defined in section 102(b)), such institution will 
        derive not less than ten percent of such institution's revenues 
        from sources other than funds provided under this title, as 
        calculated in accordance with subsection (d)(1), or will be 
        subject to the sanctions described in subsection (d)(2).
            ``(25) In the case of an institution that participates in a 
        loan program under this title, the institution will--
                    ``(A) develop a code of conduct with respect to such 
                loans with which the institution's officers, employees, 
                and agents shall comply, that--
                          ``(i) prohibits a conflict of interest with 
                      the responsibilities of an officer, employee, or 
                      agent of an institution with respect to such 
                      loans; and
                          ``(ii) at a minimum, includes the provisions 
                      described in subsection (e);
                    ``(B) <<NOTE: Web site.>> publish such code of 
                conduct prominently on the institution's website; and
                    ``(C) administer and enforce such code by, at a 
                minimum, requiring that all of the institution's 
                officers, employees, and agents with responsibilities 
                with respect to such loans be annually informed of the 
                provisions of the code of conduct.
            ``(26) The institution will, upon written request, disclose 
        to the alleged victim of any crime of violence (as that term is 
        defined in section 16 of title 18, United States Code), or

[[Page 122 STAT. 3309]]

        a nonforcible sex offense, the report on the results of any 
        disciplinary proceeding conducted by such institution against a 
        student who is the alleged perpetrator of such crime or offense 
        with respect to such crime or offense. If the alleged victim of 
        such crime or offense is deceased as a result of such crime or 
        offense, the next of kin of such victim shall be treated as the 
        alleged victim for purposes of this paragraph.
            ``(27) In <<NOTE: Lists.>> the case of an institution that 
        has entered into a preferred lender arrangement, the institution 
        will at least annually compile, maintain, and make available for 
        students attending the institution, and the families of such 
        students, a list, in print or other medium, of the specific 
        lenders for loans made, insured, or guaranteed under this title 
        or private education loans that the institution recommends, 
        promotes, or endorses in accordance with such preferred lender 
        arrangement. In making such list, the institution shall comply 
        with the requirements of subsection (h).
            ``(28)(A) The institution will, upon the request of an 
        applicant for a private education loan, provide to the applicant 
        the form required under section 128(e)(3) of the Truth in 
        Lending Act (15 U.S.C. 1638(e)(3)), and the information required 
        to complete such form, to the extent the institution possesses 
        such information.
            ``(B) For purposes of this paragraph, the term `private 
        education loan' has the meaning given such term in section 140 
        of the Truth in Lending Act.
            ``(29) The <<NOTE: Certification.>> institution certifies 
        that the institution--
                    ``(A) has developed plans to effectively combat the 
                unauthorized distribution of copyrighted material, 
                including through the use of a variety of technology-
                based deterrents; and
                    ``(B) will, to the extent practicable, offer 
                alternatives to illegal downloading or peer-to-peer 
                distribution of intellectual property, as determined by 
                the institution in consultation with the chief 
                technology officer or other designated officer of the 
                institution.''.
                    (B) Effective <<NOTE: 20 USC 1094 note.>> date.--The 
                amendment made by subparagraph (A) with respect to 
                section 487(a)(26) of the Higher Education Act of 1965 
                (as added by subparagraph (A)) shall apply with respect 
                to any disciplinary proceeding conducted by an 
                institution on or after the day that is one year after 
                the date of enactment of this Act.

    (b) Audits; Financial Responsibility; Enforcement of Standards.--
Section 487(c)(1)(A)(i) (20 U.S.C. 1094(c)(1)(A)(i)) is amended by 
inserting before the semicolon at the end the following: ``, except that 
the Secretary may modify the requirements of this clause with respect to 
institutions of higher education that are foreign institutions, and may 
waive such requirements with respect to a foreign institution whose 
students receives less than $500,000 in loans under this title during 
the award year preceding the audit period''.
    (c) Implementation of Non-Title IV Revenue Requirement; Code of 
Conduct; Institutional Requirements for Teach-Outs; Inspector General 
Report on Gift Ban Violations; Preferred Lender List Requirements.--
Section 487 (20 U.S.C. 1094) is further amended--

[[Page 122 STAT. 3310]]

            (1) by redesignating subsections (d) and (e) as subsections 
        (i) and (j), respectively; and
            (2) by inserting after subsection (c) the following:

    ``(d) Implementation of Non-Title IV Revenue Requirement.--
            ``(1) Calculation.--In making calculations under subsection 
        (a)(24), a proprietary institution of higher education shall--
                    ``(A) use the cash basis of accounting, except in 
                the case of loans described in subparagraph (D)(i) that 
                are made by the proprietary institution of higher 
                education;
                    ``(B) consider as revenue only those funds generated 
                by the institution from--
                          ``(i) tuition, fees, and other institutional 
                      charges for students enrolled in programs eligible 
                      for assistance under this title;
                          ``(ii) activities conducted by the institution 
                      that are necessary for the education and training 
                      of the institution's students, if such activities 
                      are--
                                    ``(I) conducted on campus or at a 
                                facility under the control of the 
                                institution;
                                    ``(II) performed under the 
                                supervision of a member of the 
                                institution's faculty; and
                                    ``(III) required to be performed by 
                                all students in a specific educational 
                                program at the institution; and
                          ``(iii) funds paid by a student, or on behalf 
                      of a student by a party other than the 
                      institution, for an education or training program 
                      that is not eligible for funds under this title, 
                      if the program--
                                    ``(I) is approved or licensed by the 
                                appropriate State agency;
                                    ``(II) is accredited by an 
                                accrediting agency recognized by the 
                                Secretary; or
                                    ``(III) provides an industry-
                                recognized credential or certification;
                    ``(C) presume that any funds for a program under 
                this title that are disbursed or delivered to or on 
                behalf of a student will be used to pay the student's 
                tuition, fees, or other institutional charges, 
                regardless of whether the institution credits those 
                funds to the student's account or pays those funds 
                directly to the student, except to the extent that the 
                student's tuition, fees, or other institutional charges 
                are satisfied by--
                          ``(i) grant funds provided by non-Federal 
                      public agencies or private sources independent of 
                      the institution;
                          ``(ii) funds provided under a contractual 
                      arrangement with a Federal, State, or local 
                      government agency for the purpose of providing job 
                      training to low-income individuals who are in need 
                      of that training;
                          ``(iii) funds used by a student from savings 
                      plans for educational expenses established by or 
                      on behalf of the student and which qualify for 
                      special tax treatment under the Internal Revenue 
                      Code of 1986; or
                          ``(iv) institutional scholarships described in 
                      subparagraph (D)(iii);

[[Page 122 STAT. 3311]]

                    ``(D) include institutional aid as revenue to the 
                school only as follows:
                          ``(i) in the case of loans made by a 
                      proprietary institution of higher education on or 
                      after July 1, 2008 and prior to July 1, 2012, the 
                      net present value of such loans made by the 
                      institution during the applicable institutional 
                      fiscal year accounted for on an accrual basis and 
                      estimated in accordance with generally accepted 
                      accounting principles and related standards and 
                      guidance, if the loans--
                                    ``(I) are bona fide as evidenced by 
                                enforceable promissory notes;
                                    ``(II) are issued at intervals 
                                related to the institution's enrollment 
                                periods; and
                                    ``(III) are subject to regular loan 
                                repayments and collections;
                          ``(ii) in the case of loans made by a 
                      proprietary institution of higher education on or 
                      after July 1, 2012, only the amount of loan 
                      repayments received during the applicable 
                      institutional fiscal year, excluding repayments on 
                      loans made and accounted for as specified in 
                      clause (i); and
                          ``(iii) in the case of scholarships provided 
                      by a proprietary institution of higher education, 
                      only those scholarships provided by the 
                      institution in the form of monetary aid or tuition 
                      discounts based upon the academic achievements or 
                      financial need of students, disbursed during each 
                      fiscal year from an established restricted 
                      account, and only to the extent that funds in that 
                      account represent designated funds from an outside 
                      source or from income earned on those funds;
                    ``(E) in the case of each student who receives a 
                loan on or after July 1, 2008, and prior to July 1, 
                2011, that is authorized under section 428H or that is a 
                Federal Direct Unsubsidized Stafford Loan, treat as 
                revenue received by the institution from sources other 
                than funds received under this title, the amount by 
                which the disbursement of such loan received by the 
                institution exceeds the limit on such loan in effect on 
                the day before the date of enactment of the Ensuring 
                Continued Access to Student Loans Act of 2008; and
                    ``(F) exclude from revenues--
                          ``(i) the amount of funds the institution 
                      received under part C, unless the institution used 
                      those funds to pay a student's institutional 
                      charges;
                          ``(ii) the amount of funds the institution 
                      received under subpart 4 of part A;
                          ``(iii) the amount of funds provided by the 
                      institution as matching funds for a program under 
                      this title;
                          ``(iv) the amount of funds provided by the 
                      institution for a program under this title that 
                      are required to be refunded or returned; and
                          ``(v) the amount charged for books, supplies, 
                      and equipment, unless the institution includes 
                      that amount as tuition, fees, or other 
                      institutional charges.
            ``(2) Sanctions.--

[[Page 122 STAT. 3312]]

                    ``(A) Ineligibility.--A proprietary institution of 
                higher education that fails to meet a requirement of 
                subsection (a)(24) for two consecutive institutional 
                fiscal years shall be ineligible to participate in the 
                programs authorized by this title for a period of not 
                less than two institutional fiscal years. To regain 
                eligibility to participate in the programs authorized by 
                this title, a proprietary institution of higher 
                education shall demonstrate compliance with all 
                eligibility and certification requirements under section 
                498 for a minimum of two institutional fiscal years 
                after the institutional fiscal year in which the 
                institution became ineligible.
                    ``(B) 
                Additional <<NOTE: Termination.>> enforcement.--In 
                addition to such other means of enforcing the 
                requirements of this title as may be available to the 
                Secretary, if a proprietary institution of higher 
                education fails to meet a requirement of subsection 
                (a)(24) for any institutional fiscal year, then the 
                institution's eligibility to participate in the programs 
                authorized by this title becomes provisional for the two 
                institutional fiscal years after the institutional 
                fiscal year in which the institution failed to meet the 
                requirement of subsection (a)(24), except that such 
                provisional eligibility shall terminate--
                          ``(i) on the expiration date of the 
                      institution's program participation agreement 
                      under this subsection that is in effect on the 
                      date the Secretary determines that the institution 
                      failed to meet the requirement of subsection 
                      (a)(24); or
                          ``(ii) in the case that the Secretary 
                      determines that the institution failed to meet a 
                      requirement of subsection (a)(24) for two 
                      consecutive institutional fiscal years, on the 
                      date the institution is determined ineligible in 
                      accordance with subparagraph (A).
            ``(3) Publication on college navigator website.--The 
        Secretary shall publicly disclose on the College Navigator 
        website--
                    ``(A) the identity of any proprietary institution of 
                higher education that fails to meet a requirement of 
                subsection (a)(24); and
                    ``(B) the extent to which the institution failed to 
                meet such requirement.
            ``(4) Report to congress.--Not later than July 1, 2009, and 
        July 1 of each succeeding year, the Secretary shall submit to 
        the authorizing committees a report that contains, for each 
        proprietary institution of higher education that receives 
        assistance under this title, as provided in the audited 
        financial statements submitted to the Secretary by each 
        institution pursuant to the requirements of subsection (a)(24)--
                    ``(A) the amount and percentage of such 
                institution's revenues received from sources under this 
                title; and
                    ``(B) the amount and percentage of such 
                institution's revenues received from other sources.

    ``(e) Code of Conduct Requirements.--An institution of higher 
education's code of conduct, as required under subsection (a)(25), shall 
include the following requirements:
            ``(1) Ban on revenue-sharing arrangements.--

[[Page 122 STAT. 3313]]

                    ``(A) Prohibition.--The institution shall not enter 
                into any revenue-sharing arrangement with any lender.
                    ``(B) Definition.--For purposes of this paragraph, 
                the term `revenue-sharing arrangement' means an 
                arrangement between an institution and a lender under 
                which--
                          ``(i) a lender provides or issues a loan that 
                      is made, insured, or guaranteed under this title 
                      to students attending the institution or to the 
                      families of such students; and
                          ``(ii) the institution recommends the lender 
                      or the loan products of the lender and in 
                      exchange, the lender pays a fee or provides other 
                      material benefits, including revenue or profit 
                      sharing, to the institution, an officer or 
                      employee of the institution, or an agent.
            ``(2) Gift ban.--
                    ``(A) Prohibition.--No officer or employee of the 
                institution who is employed in the financial aid office 
                of the institution or who otherwise has responsibilities 
                with respect to education loans, or agent who has 
                responsibilities with respect to education loans, shall 
                solicit or accept any gift from a lender, guarantor, or 
                servicer of education loans.
                    ``(B) Definition of gift.--
                          ``(i) In general.--In this paragraph, the term 
                      `gift' means any gratuity, favor, discount, 
                      entertainment, hospitality, loan, or other item 
                      having a monetary value of more than a de minimus 
                      amount. The term includes a gift of services, 
                      transportation, lodging, or meals, whether 
                      provided in kind, by purchase of a ticket, payment 
                      in advance, or reimbursement after the expense has 
                      been incurred.
                          ``(ii) Exceptions.--The term `gift' shall not 
                      include any of the following:
                                    ``(I) Standard material, activities, 
                                or programs on issues related to a loan, 
                                default aversion, default prevention, or 
                                financial literacy, such as a brochure, 
                                a workshop, or training.
                                    ``(II) Food, refreshments, training, 
                                or informational material furnished to 
                                an officer or employee of an 
                                institution, or to an agent, as an 
                                integral part of a training session that 
                                is designed to improve the service of a 
                                lender, guarantor, or servicer of 
                                education loans to the institution, if 
                                such training contributes to the 
                                professional development of the officer, 
                                employee, or agent.
                                    ``(III) Favorable terms, conditions, 
                                and borrower benefits on an education 
                                loan provided to a student employed by 
                                the institution if such terms, 
                                conditions, or benefits are comparable 
                                to those provided to all students of the 
                                institution.
                                    ``(IV) Entrance and exit counseling 
                                services provided to borrowers to meet 
                                the institution's responsibilities for 
                                entrance and exit counseling as required 
                                by subsections (b) and (l) of section 
                                485, as long as--
                                            ``(aa) the institution's 
                                        staff are in control of the 
                                        counseling, (whether in person 
                                        or via electronic capabilities); 
                                        and

[[Page 122 STAT. 3314]]

                                            ``(bb) such counseling does 
                                        not promote the products or 
                                        services of any specific lender.
                                    ``(V) Philanthropic contributions to 
                                an institution from a lender, servicer, 
                                or guarantor of education loans that are 
                                unrelated to education loans or any 
                                contribution from any lender, guarantor, 
                                or servicer that is not made in exchange 
                                for any advantage related to education 
                                loans.
                                    ``(VI) State education grants, 
                                scholarships, or financial aid funds 
                                administered by or on behalf of a State.
                          ``(iii) Rule for gifts to family members.--For 
                      purposes of this paragraph, a gift to a family 
                      member of an officer or employee of an 
                      institution, to a family member of an agent, or to 
                      any other individual based on that individual's 
                      relationship with the officer, employee, or agent, 
                      shall be considered a gift to the officer, 
                      employee, or agent if--
                                    ``(I) the gift is given with the 
                                knowledge and acquiescence of the 
                                officer, employee, or agent; and
                                    ``(II) the officer, employee, or 
                                agent has reason to believe the gift was 
                                given because of the official position 
                                of the officer, employee, or agent.
            ``(3) Contracting arrangements prohibited.--
                    ``(A) Prohibition.--An officer or employee who is 
                employed in the financial aid office of the institution 
                or who otherwise has responsibilities with respect to 
                education loans, or an agent who has responsibilities 
                with respect to education loans, shall not accept from 
                any lender or affiliate of any lender any fee, payment, 
                or other financial benefit (including the opportunity to 
                purchase stock) as compensation for any type of 
                consulting arrangement or other contract to provide 
                services to a lender or on behalf of a lender relating 
                to education loans.
                    ``(B) Exceptions.--Nothing in this subsection shall 
                be construed as prohibiting--
                          ``(i) an officer or employee of an institution 
                      who is not employed in the institution's financial 
                      aid office and who does not otherwise have 
                      responsibilities with respect to education loans, 
                      or an agent who does not have responsibilities 
                      with respect to education loans, from performing 
                      paid or unpaid service on a board of directors of 
                      a lender, guarantor, or servicer of education 
                      loans;
                          ``(ii) an officer or employee of the 
                      institution who is not employed in the 
                      institution's financial aid office but who has 
                      responsibility with respect to education loans as 
                      a result of a position held at the institution, or 
                      an agent who has responsibility with respect to 
                      education loans, from performing paid or unpaid 
                      service on a board of directors of a lender, 
                      guarantor, or servicer of education loans, if the 
                      institution has a written conflict of interest 
                      policy that clearly sets forth that officers, 
                      employees, or agents must recuse themselves from 
                      participating in any decision of the board 
                      regarding education loans at the institution; or

[[Page 122 STAT. 3315]]

                          ``(iii) an officer, employee, or contractor of 
                      a lender, guarantor, or servicer of education 
                      loans from serving on a board of directors, or 
                      serving as a trustee, of an institution, if the 
                      institution has a written conflict of interest 
                      policy that the board member or trustee must 
                      recuse themselves from any decision regarding 
                      education loans at the institution.
            ``(4) Interaction with borrowers.--The institution shall 
        not--
                    ``(A) for any first-time borrower, assign, through 
                award packaging or other methods, the borrower's loan to 
                a particular lender; or
                    ``(B) refuse to certify, or delay certification of, 
                any loan based on the borrower's selection of a 
                particular lender or guaranty agency.
            ``(5) Prohibition on offers of funds for private loans.--
                    ``(A) Prohibition.--The institution shall not 
                request or accept from any lender any offer of funds to 
                be used for private education loans (as defined in 
                section 140 of the Truth in Lending Act), including 
                funds for an opportunity pool loan, to students in 
                exchange for the institution providing concessions or 
                promises regarding providing the lender with--
                          ``(i) a specified number of loans made, 
                      insured, or guaranteed under this title;
                          ``(ii) a specified loan volume of such loans; 
                      or
                          ``(iii) a preferred lender arrangement for 
                      such loans.
                    ``(B) Definition of opportunity pool loan.--In this 
                paragraph, the term `opportunity pool loan' means a 
                private education loan made by a lender to a student 
                attending the institution or the family member of such a 
                student that involves a payment, directly or indirectly, 
                by such institution of points, premiums, additional 
                interest, or financial support to such lender for the 
                purpose of such lender extending credit to the student 
                or the family.
            ``(6) Ban on staffing assistance.--
                    ``(A) Prohibition.--The institution shall not 
                request or accept from any lender any assistance with 
                call center staffing or financial aid office staffing.
                    ``(B) Certain assistance permitted.--Nothing in 
                paragraph (1) shall be construed to prohibit the 
                institution from requesting or accepting assistance from 
                a lender related to--
                          ``(i) professional development training for 
                      financial aid administrators;
                          ``(ii) providing educational counseling 
                      materials, financial literacy materials, or debt 
                      management materials to borrowers, provided that 
                      such materials disclose to borrowers the 
                      identification of any lender that assisted in 
                      preparing or providing such materials; or
                          ``(iii) staffing services on a short-term, 
                      nonrecurring basis to assist the institution with 
                      financial aid-related functions during 
                      emergencies, including State-declared or federally 
                      declared natural disasters,

[[Page 122 STAT. 3316]]

                      federally declared national disasters, and other 
                      localized disasters and emergencies identified by 
                      the Secretary.
            ``(7) Advisory board compensation.--Any employee who is 
        employed in the financial aid office of the institution, or who 
        otherwise has responsibilities with respect to education loans 
        or other student financial aid of the institution, and who 
        serves on an advisory board, commission, or group established by 
        a lender, guarantor, or group of lenders or guarantors, shall be 
        prohibited from receiving anything of value from the lender, 
        guarantor, or group of lenders or guarantors, except that the 
        employee may be reimbursed for reasonable expenses incurred in 
        serving on such advisory board, commission, or group.

    ``(f) Institutional Requirements for Teach-Outs.--
            ``(1) In general.-- <<NOTE: Plans.>> In the event the 
        Secretary initiates the limitation, suspension, or termination 
        of the participation of an institution of higher education in 
        any program under this title under the authority of subsection 
        (c)(1)(F) or initiates an emergency action under the authority 
        of subsection (c)(1)(G) and its prescribed regulations, the 
        Secretary shall require that institution to prepare a teach-out 
        plan for submission to the institution's accrediting agency or 
        association in compliance with section 496(c)(4), the 
        Secretary's regulations on teach-out plans, and the standards of 
        the institution's accrediting agency or association.
            ``(2) Teach-out plan defined.--In this subsection, the term 
        `teach-out plan' means a written plan that provides for the 
        equitable treatment of students if an institution of higher 
        education ceases to operate before all students have completed 
        their program of study, and may include, if required by the 
        institution's accrediting agency or association, an agreement 
        between institutions for such a teach-out plan.

    ``(g) Inspector General Report on Gift Ban Violations.--The 
Inspector General of the Department shall--
            ``(1) submit an annual report to the authorizing committees 
        identifying all violations of an institution's code of conduct 
        that the Inspector General has substantiated during the 
        preceding year relating to the gift ban provisions described in 
        subsection (f)(2); and
            ``(2) <<NOTE: Public information. Web site.>> make the 
        report available to the public through the Department's website.

    ``(h) Preferred Lender List Requirements.--
            ``(1) In general.--In compiling, maintaining, and making 
        available a preferred lender list as required under subsection 
        (a)(27), the institution will--
                    ``(A) clearly and fully disclose on such preferred 
                lender list--
                          ``(i) not less than the information required 
                      to be disclosed under section 153(a)(2)(A);
                          ``(ii) why the institution has entered into a 
                      preferred lender arrangement with each lender on 
                      the preferred lender list, particularly with 
                      respect to terms and conditions or provisions 
                      favorable to the borrower; and

[[Page 122 STAT. 3317]]

                          ``(iii) that the students attending the 
                      institution, or the families of such students, do 
                      not have to borrow from a lender on the preferred 
                      lender list;
                    ``(B) ensure, through the use of the list of lender 
                affiliates provided by the Secretary under paragraph 
                (2), that--
                          ``(i) there are not less than three lenders of 
                      loans made under part B that are not affiliates of 
                      each other included on the preferred lender list 
                      and, if the institution recommends, promotes, or 
                      endorses private education loans, there are not 
                      less than two lenders of private education loans 
                      that are not affiliates of each other included on 
                      the preferred lender list; and
                          ``(ii) the preferred lender list under this 
                      paragraph--
                                    ``(I) specifically indicates, for 
                                each listed lender, whether the lender 
                                is or is not an affiliate of each other 
                                lender on the preferred lender list; and
                                    ``(II) if a lender is an affiliate 
                                of another lender on the preferred 
                                lender list, describes the details of 
                                such affiliation;
                    ``(C) prominently disclose the method and criteria 
                used by the institution in selecting lenders with which 
                to enter into preferred lender arrangements to ensure 
                that such lenders are selected on the basis of the best 
                interests of the borrowers, including--
                          ``(i) payment of origination or other fees on 
                      behalf of the borrower;
                          ``(ii) highly competitive interest rates, or 
                      other terms and conditions or provisions of loans 
                      under this title or private education loans;
                          ``(iii) high-quality servicing for such loans; 
                      or
                          ``(iv) additional benefits beyond the standard 
                      terms and conditions or provisions for such loans;
                    ``(D) exercise a duty of care and a duty of loyalty 
                to compile the preferred lender list under this 
                paragraph without prejudice and for the sole benefit of 
                the students attending the institution, or the families 
                of such students;
                    ``(E) not deny or otherwise impede the borrower's 
                choice of a lender or cause unnecessary delay in loan 
                certification under this title for those borrowers who 
                choose a lender that is not included on the preferred 
                lender list; and
                    ``(F) comply with such other requirements as the 
                Secretary may prescribe by regulation.
            ``(2) Lender affiliates list.--
                    ``(A) In general.--The Secretary shall maintain and 
                regularly update a list of lender affiliates of all 
                eligible lenders, and shall provide such list to 
                institutions for use in carrying out paragraph (1)(B).
                    ``(B) Use of most recent list.--An institution shall 
                use the most recent list of lender affiliates provided 
                by the Secretary under subparagraph (A) in carrying out 
                paragraph (1)(B).''.

    (d) Definitions.--Section 487(i) (as redesignated by subsection 
(c)(1)) (20 U.S.C. 1087(i)) <<NOTE: 20 USC 1094.>> is further amended--
            (1) by striking ``(i) Definition of Eligible Institution.--
        For the purpose of this section, the'' and inserting the 
        following:

[[Page 122 STAT. 3318]]

    ``(i) Definitions.--For the purpose of this section:
            ``(1) Agent.--The term `agent' has the meaning given the 
        term in section 151.
            ``(2) Affiliate.--The term `affiliate' means a person that 
        controls, is controlled by, or is under common control with 
        another person. A person controls, is controlled by, or is under 
        common control with another person if--
                    ``(A) the person directly or indirectly, or acting 
                through one or more others, owns, controls, or has the 
                power to vote five percent or more of any class of 
                voting securities of such other person;
                    ``(B) the person controls, in any manner, the 
                election of a majority of the directors or trustees of 
                such other person; or
                    ``(C) the Secretary determines (after notice and 
                opportunity for a hearing) that the person directly or 
                indirectly exercises a controlling interest over the 
                management or policies of such other person's education 
                loans.
            ``(3) Education loan.--The term `education loan' has the 
        meaning given the term in section 151.
            ``(4) Eligible institution.--The''; and
            (2) by adding at the end the following new paragraph:
            ``(5) Officer.--The term `officer' has the meaning given the 
        term in section 151.
            ``(6) Preferred lender arrangement.--The term `preferred 
        lender arrangement' has the meaning given the term in section 
        151.''.
SEC. 494. REGULATORY RELIEF AND IMPROVEMENT.

    Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) In general.-- <<NOTE: Effective date.>> The Secretary 
        shall continue the voluntary participation of any experimental 
        sites in existence as of July 1, 2007, unless the Secretary 
        determines that such site's participation has not been 
        successful in carrying out the purposes of this section. 
        Any <<NOTE: Deadline.>> activities approved by the Secretary 
        prior to such date that have not been successful in carrying out 
        the purposes of this section shall be discontinued not later 
        than June 30, 2009.'';
            (2) in paragraph (2), by striking the matter preceding 
        subparagraph (A) and inserting the following:
            ``(2) Report.--The Secretary shall review and evaluate the 
        experience of institutions participating as experimental sites 
        and shall, on a biennial basis, submit a report based on the 
        review and evaluation to the authorizing committees. Such report 
        shall include--''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A)--
                          (i) by striking ``Upon the submission of the 
                      report required by paragraph (2), the'' and 
                      inserting ``The''; and
                          (ii) by inserting ``periodically'' after 
                      ``authorized to'';
                    (B) by striking subparagraph (B);
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
                    (D) in subparagraph (B) (as redesignated by 
                subparagraph (C))--

[[Page 122 STAT. 3319]]

                          (i) by inserting ``, including requirements 
                      related to the award process and disbursement of 
                      student financial aid (such as innovative delivery 
                      systems for modular or compressed courses, or 
                      other innovative systems), verification of student 
                      financial aid application data, entrance and exit 
                      interviews, or other management procedures or 
                      processes as determined in the negotiated 
                      rulemaking process under section 492'' after 
                      ``requirements in this title'';
                          (ii) by inserting ``(other than an award rule 
                      related to an experiment in modular or compressed 
                      schedules)'' after ``award rules''; and
                          (iii) by inserting ``unless the waiver of such 
                      provisions is authorized by another provision 
                      under this title'' before the period at the end.
SEC. 494A. TRANSFER OF ALLOTMENTS.

    Section 488 (20 U.S.C. 1095) is amended in the first sentence--
            (1) in paragraph (1), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (2), by striking ``413D.'' and inserting 
        ``413D or 462 (or both); and''; and
            (3) by adding at the end ``(3) transfer 25 percent of the 
        institution's allotment under section 413D to the institution's 
        allotment under section 442.''.
SEC. 494B. PURPOSE OF ADMINISTRATIVE PAYMENTS.

    Section 489(b)(1) (20 U.S.C. 1096(b)(1)) is amended by striking 
``offsetting the administrative costs of'' and inserting 
``administering''.
SEC. 494C. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

    (a) Amendments.--Section 491 (20 U.S.C. 1098) is amended--
            (1) in subsection (a)(2)--
                    (A) in subparagraph (B), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (C), by striking the period and 
                inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(D) to provide knowledge and understanding of 
                early intervention programs, and to make recommendations 
                that will result in early awareness by low- and 
                moderate-income students and families--
                          ``(i) of their eligibility for assistance 
                      under this title; and
                          ``(ii) to the extent practicable, of their 
                      eligibility for other forms of State and 
                      institutional need-based student assistance;
                    ``(E) to make recommendations that will expand and 
                improve partnerships among the Federal Government, 
                States, institutions of higher education, and private 
                entities to increase the awareness and the total amount 
                of need-based student assistance available to low- and 
                moderate-income students; and
                    ``(F) to collect information on Federal regulations, 
                and on the impact of Federal regulations on student 
                financial assistance and on the cost of receiving a 
                postsecondary

[[Page 122 STAT. 3320]]

                education, and to make recommendations to help 
                streamline the regulations for institutions of higher 
                education from all sectors.'';
            (2) by striking subsection (c) and inserting the following 
        new subsection:

    ``(c) Membership.--(1) The Advisory Committee shall consist of 11 
members appointed as follows:
            ``(A) <<NOTE: President.>> Four members shall be appointed 
        by the President pro tempore of the Senate, of whom two members 
        shall be appointed from recommendations by the Majority Leader 
        of the Senate, and two members shall be appointed from 
        recommendations by the Minority Leader of the Senate.
            ``(B) Four members shall be appointed by the Speaker of the 
        House of Representatives, of whom two members shall be appointed 
        from recommendations by the Majority Leader of the House of 
        Representatives, and two members shall be appointed from 
        recommendations by the Minority Leader of the House of 
        Representatives.
            ``(C) Three members shall be appointed by the Secretary, of 
        whom at least one member shall be a student.

    ``(2) Each member of the Advisory Committee, with the exception of a 
student member, shall be appointed on the basis of technical 
qualifications, professional experience, and demonstrated knowledge in 
the fields of higher education, student financial aid, financing post-
secondary education, and the operations and financing of student loan 
guarantee agencies.
    ``(3) The <<NOTE: Effective date. Publication.>> appointment of a 
member under subparagraph (A) or (B) of paragraph (1) shall be effective 
upon publication of such appointment in the Congressional Record.'';
            (3) in subsection (d)--
                    (A) in paragraph (6), by striking ``, but nothing in 
                this section shall authorize the committee to perform 
                such studies, surveys, or analyses'';
                    (B) in paragraph (8), by striking ``and'' after the 
                semicolon;
                    (C) by redesignating paragraph (9) as paragraph 
                (11); and
                    (D) by inserting after paragraph (8) (as amended by 
                subparagraph (B)) the following:
            ``(9) provide <<NOTE: Deadline. Reports.>> an annual report 
        to the authorizing committees that provides analyses and policy 
        recommendations regarding--
                    ``(A) the adequacy of need-based grant aid for low- 
                and moderate-income students; and
                    ``(B) the postsecondary enrollment and graduation 
                rates of low- and moderate-income students;
            ``(10) develop <<NOTE: Clearinghouse.>> and maintain an 
        information clearinghouse to help institutions of higher 
        education understand the regulatory impact of the Federal 
        Government on institutions of higher education from all sectors, 
        in order to raise awareness of institutional legal obligations 
        and provide information to improve compliance with, and to 
        reduce the duplication and inefficiency of, Federal regulations; 
        and'';
            (4) in subsection (e)--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (1), by striking ``3'' and inserting ``4''; 
                and
                    (B) in paragraph (2), by striking ``A member of the 
                Advisory Committee shall'' and all that follows through

[[Page 122 STAT. 3321]]

                ``on the Advisory Committee.'' and inserting ``A member 
                of the Advisory Committee serving on the date of 
                enactment of the Higher Education Opportunity Act shall 
                be permitted to serve the duration of the member's term, 
                regardless of whether the member was previously 
                appointed to more than one term.'';
            (5) in subsection (j)--
                    (A) in paragraph (1)--
                          (i) by inserting ``and simplifications'' after 
                      ``delivery processes''; and
                          (ii) by striking ``including the 
                      implementation of a performance-based organization 
                      within the Department, and report to Congress 
                      regarding such modernization on not less than an 
                      annual basis,''; and
                    (B) by striking paragraphs (4) and (5) and inserting 
                the following:
            ``(4) conduct a review and analysis of regulations in 
        accordance with subsection (l); and
            ``(5) conduct a study in accordance with subsection (m).'';
            (6) in subsection (k), by striking ``2004'' and inserting 
        ``2014''; and
            (7) by adding at the end the following:

    ``(l) Review and Analysis of Regulations.--
            ``(1) Recommendations.--The Advisory Committee shall make 
        recommendations to the Secretary and the authorizing committees 
        for consideration of future legislative action regarding 
        redundant or outdated regulations consistent with the 
        Secretary's requirements under section 498B.
            ``(2) Review and analysis of regulations.--
                    ``(A) Review of current regulations.--To meet the 
                requirements of subsection (d)(10), the Advisory 
                Committee shall conduct a review and analysis of the 
                regulations issued by Federal agencies that are in 
                effect at the time of the review and that apply to the 
                operations or activities of institutions of higher 
                education from all sectors. The review and analysis may 
                include a determination of whether the regulation is 
                duplicative, is no longer necessary, is inconsistent 
                with other Federal requirements, or is overly 
                burdensome. In conducting the review, the Advisory 
                Committee shall pay specific attention to evaluating 
                ways in which regulations under this title affecting 
                institutions of higher education (other than 
                institutions described in section 102(a)(1)(C)), that 
                have received in each of the two most recent award years 
                prior to the date of enactment of Higher Education 
                Opportunity Act less than $200,000 in funds through this 
                title, may be improved, streamlined, or eliminated.
                    ``(B) Review and collection of future regulations.--
                The Advisory Committee shall--
                          ``(i) monitor all Federal regulations, 
                      including notices of proposed rulemaking, for 
                      their impact or potential impact on higher 
                      education; and
                          ``(ii) provide a succinct description of each 
                      regulation or proposed regulation that is 
                      generally relevant to institutions of higher 
                      education from all sectors.

[[Page 122 STAT. 3322]]

                    ``(C) Maintenance of public website.--The Advisory 
                Committee shall develop and maintain an easy to use, 
                searchable, and regularly updated website that--
                          ``(i) provides information collected in 
                      subparagraph (B);
                          ``(ii) provides an area for the experts and 
                      members of the public to provide recommendations 
                      for ways in which the regulations may be 
                      streamlined; and
                          ``(iii) publishes the study conducted by the 
                      National Research Council of the National Academy 
                      of Sciences under section 1106 of the Higher 
                      Education Opportunity Act.
            ``(3) Consultation.--
                    ``(A) In general.--In carrying out the review, 
                analysis, and development of the website required under 
                paragraph (2), the Advisory Committee shall consult with 
                the Secretary, other Federal agencies, relevant 
                representatives of institutions of higher education, 
                individuals who have expertise and experience with 
                Federal regulations, and the review panels described in 
                subparagraph (B).
                    ``(B) Review panels.--The Advisory Committee shall 
                convene not less than two review panels of 
                representatives of the groups involved in higher 
                education, including individuals involved in student 
                financial assistance programs under this title, who have 
                experience and expertise in the regulations issued by 
                the Federal Government that affect all sectors of higher 
                education, in order to review the regulations and to 
                provide recommendations to the Advisory Committee with 
                respect to the review and analysis under paragraph (2). 
                The panels shall be made up of experts in areas such as 
                the operations of the financial assistance programs, the 
                institutional eligibility requirements for the financial 
                assistance programs, regulations not directly related to 
                the operations or the institutional eligibility 
                requirements of the financial assistance programs, and 
                regulations for dissemination of information to students 
                about the financial assistance programs.
            ``(4) Periodic updates to the authorizing committees.--The 
        Advisory Committee shall--
                    ``(A) <<NOTE: Deadline. Reports.>> submit, not later 
                than two years after the completion of the negotiated 
                rulemaking process required under section 492 resulting 
                from the amendments to this Act made by the Higher 
                Education Opportunity Act, a report to the authorizing 
                committees and the Secretary detailing the review 
                panels' findings and recommendations with respect to the 
                review of regulations; and
                    ``(B) provide periodic updates to the authorizing 
                committees regarding--
                          ``(i) the impact of all Federal regulations on 
                      all sectors of higher education; and
                          ``(ii) suggestions provided through the 
                      website for streamlining or eliminating 
                      duplicative regulations.
            ``(5) Additional support.--The Secretary and the Inspector 
        General of the Department shall provide such assistance and 
        resources to the Advisory Committee as the Secretary and 
        Inspector General determine are necessary to conduct the review 
        and analysis required by this subsection.

[[Page 122 STAT. 3323]]

    ``(m) Study of Innovative Pathways to Baccalaureate Degree 
Attainment.--
            ``(1) Study required.--The Advisory Committee shall conduct 
        a study of the feasibility of increasing baccalaureate degree 
        attainment rates by reducing the costs and financial barriers to 
        attaining a baccalaureate degree through innovative programs.
            ``(2) Scope of study.--The Advisory Committee shall examine 
        new and existing programs that promote baccalaureate degree 
        attainment through innovative ways, such as dual or concurrent 
        enrollment programs, changes made to the Federal Pell Grant 
        program, simplification of the needs analysis process, 
        compressed or modular scheduling, articulation agreements, and 
        programs that allow two-year institutions of higher education to 
        offer baccalaureate degrees.
            ``(3) Required aspects of the study.--In performing the 
        study described in this subsection, the Advisory Committee shall 
        examine the following aspects of such innovative programs:
                    ``(A) The impact of such programs on baccalaureate 
                attainment rates.
                    ``(B) The degree to which a student's total cost of 
                attaining a baccalaureate degree can be reduced by such 
                programs.
                    ``(C) The ways in which low- and moderate-income 
                students can be specifically targeted by such programs.
                    ``(D) The ways in which nontraditional students can 
                be specifically targeted by such programs.
                    ``(E) The cost-effectiveness for the Federal 
                Government, States, and institutions of higher education 
                to implement such programs.
            ``(4) Consultation.--
                    ``(A) In general.--In performing the study described 
                in this subsection, the Advisory Committee shall consult 
                with a broad range of interested parties in higher 
                education, including parents, students, appropriate 
                representatives of secondary schools and institutions of 
                higher education, appropriate State administrators, 
                administrators of dual or concurrent enrollment 
                programs, and appropriate Department officials.
                    ``(B) Consultation with the authorizing 
                committees.--The Advisory Committee shall consult on a 
                regular basis with the authorizing committees in 
                carrying out the study required by this subsection.
            ``(5) Reports to authorizing committees.--
                    ``(A) Interim report.--The Advisory Committee shall 
                prepare and submit to the authorizing committees and the 
                Secretary an interim report, not later than one year 
                after the date of enactment of the Higher Education 
                Opportunity Act, describing the progress made in 
                conducting the study required by this subsection and any 
                preliminary findings on the topics identified under 
                paragraph (2).
                    ``(B) Final report.--The Advisory Committee shall, 
                not later than three years after the date of enactment 
                of the Higher Education Opportunity Act, prepare and 
                submit to the authorizing committees and the Secretary a 
                final report on the study, including recommendations

[[Page 122 STAT. 3324]]

                for legislative, regulatory, and administrative changes 
                based on findings related to the topics identified under 
                paragraph (2).''.

    (b) Conforming Amendments.--Subsections (a)(1), (b), and (d)(6) of 
section 491 (20 U.S.C. 1098) are each amended by striking ``Congress'' 
and inserting ``authorizing committees''.
SEC. 494D. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

    (a) Regional Meetings.--Section 492(a) (20 U.S.C. 1098a(a)) is 
amended--
            (1) in paragraph (1), by inserting ``State student grant 
        agencies,'' after ``institutions of higher education,''; and
            (2) in paragraph (2), by striking ``, as amended by the 
        Higher Education Amendments of 1998''.

    (b) Negotiated Rulemaking.--Section 492(b)(1) (20 U.S.C. 
1098a(b)(1)) is amended--
            (1) in the first sentence, by striking ``as amended by the 
        Higher Education Amendments of 1998''; and
            (2) in the third sentence--
                    (A) by striking ``To the extent possible, the 
                Secretary'' and inserting ``The Secretary''; and
                    (B) by inserting ``with demonstrated expertise or 
                experience in the relevant subjects under negotiation,'' 
                after ``select individuals''.
SEC. 494E. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.

    Section 493A (20 U.S.C. 1098c) is repealed.
SEC. 494F. TECHNICAL AMENDMENT OF INCOME-BASED REPAYMENT.

    Section 493C(b)(1) (20 U.S.C. 1098e(b)(1)) is amended by striking 
``or is already in default'' and inserting ``or had been in default''.

                        PART H--PROGRAM INTEGRITY

SEC. 495. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

    Section 496 (20 U.S.C. 1099b) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (4) and inserting the 
                following:
            ``(4)(A) such agency or association consistently applies and 
        enforces standards that respect the stated mission of the 
        institution of higher education, including religious missions, 
        and that ensure that the courses or programs of instruction, 
        training, or study offered by the institution of higher 
        education, including distance education or correspondence 
        courses or programs, are of sufficient quality to achieve, for 
        the duration of the accreditation period, the stated objective 
        for which the courses or the programs are offered; and
            ``(B) if such agency or association has or seeks to include 
        within its scope of recognition the evaluation of the quality of 
        institutions or programs offering distance education or 
        correspondence education, such agency or association shall, in 
        addition to meeting the other requirements of this subpart, 
        demonstrate to the Secretary that--
                    ``(i) the agency or association's standards 
                effectively address the quality of an institution's 
                distance education

[[Page 122 STAT. 3325]]

                or correspondence education in the areas identified in 
                paragraph (5), except that--
                          ``(I) the agency or association shall not be 
                      required to have separate standards, procedures, 
                      or policies for the evaluation of distance 
                      education or correspondence education institutions 
                      or programs in order to meet the requirements of 
                      this subparagraph; and
                          ``(II) in <<NOTE: Notification.>> the case 
                      that the agency or association is recognized by 
                      the Secretary, the agency or association shall not 
                      be required to obtain the approval of the 
                      Secretary to expand its scope of accreditation to 
                      include distance education or correspondence 
                      education, provided that the agency or association 
                      notifies the Secretary in writing of the change in 
                      scope; and
                    ``(ii) the agency or association requires an 
                institution that offers distance education or 
                correspondence education to have processes through which 
                the institution establishes that the student who 
                registers in a distance education or correspondence 
                education course or program is the same student who 
                participates in and completes the program and receives 
                the academic credit;'';
                    (B) in paragraph (5), by amending subparagraph (A) 
                to read as follows:
                    ``(A) success with respect to student achievement in 
                relation to the institution's mission, which may include 
                different standards for different institutions or 
                programs, as established by the institution, including, 
                as appropriate, consideration of State licensing 
                examinations, consideration of course completion, and 
                job placement rates;'';
                    (C) by striking paragraph (6) and inserting the 
                following:
            ``(6) such <<NOTE: Procedures.>> an agency or association 
        shall establish and apply review procedures throughout the 
        accrediting process, including evaluation and withdrawal 
        proceedings, which comply with due process procedures that 
        provide--
                    ``(A) for adequate written specification of--
                          ``(i) requirements, including clear standards 
                      for an institution of higher education or program 
                      to be accredited; and
                          ``(ii) identified deficiencies at the 
                      institution or program examined;
                    ``(B) for sufficient opportunity for a written 
                response, by an institution or program, regarding any 
                deficiencies identified by the agency or association to 
                be considered by the agency or association--
                          ``(i) within a timeframe determined by the 
                      agency or association; and
                          ``(ii) prior to final action in the evaluation 
                      and withdrawal proceedings;
                    ``(C) upon the written request of an institution or 
                program, for an opportunity for the institution or 
                program to appeal any adverse action under this section, 
                including denial, withdrawal, suspension, or termination 
                of accreditation, taken against the institution or 
                program, prior to such action becoming final at a 
                hearing before an appeals panel that--

[[Page 122 STAT. 3326]]

                          ``(i) shall not include current members of the 
                      agency's or association's underlying 
                      decisionmaking body that made the adverse 
                      decision; and
                          ``(ii) is subject to a conflict of interest 
                      policy;
                    ``(D) for the right to representation and 
                participation by counsel for an institution or program 
                during an appeal of the adverse action;
                    ``(E) for a process, in accordance with written 
                procedures developed by the agency or association, 
                through which an institution or program, before a final 
                adverse action based solely upon a failure to meet a 
                standard or criterion pertaining to finances, may on one 
                occasion seek review of significant financial 
                information that was unavailable to the institution or 
                program prior to the determination of the adverse 
                action, and that bears materially on the financial 
                deficiencies identified by the agency or association;
                    ``(F) in the case that the agency or association 
                determines that the new financial information submitted 
                by the institution or program under subparagraph (E) 
                meets the criteria of significance and materiality 
                described in such subparagraph, for consideration by the 
                agency or association of the new financial information 
                prior to the adverse action described in such 
                subparagraph becoming final; and
                    ``(G) that any determination by the agency or 
                association made with respect to the new financial 
                information described in subparagraph (E) shall not be 
                separately appealable by the institution or program.'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by inserting ``, including 
                those regarding distance education'' after ``their 
                responsibilities'';
                    (B) by redesignating paragraphs (2) through (6) as 
                paragraphs (4) through (8);
                    (C) by inserting after paragraph (1) (as amended by 
                subparagraph (A)) the following:
            ``(2) monitors the growth of programs at institutions that 
        are experiencing significant enrollment growth;
            ``(3) requires an institution to submit for approval to the 
        accrediting agency a teach-out plan upon the occurrence of any 
        of the following events:
                    ``(A) the Department notifies the accrediting agency 
                of an action against the institution pursuant to section 
                487(f);
                    ``(B) the accrediting agency acts to withdraw, 
                terminate, or suspend the accreditation of the 
                institution; or
                    ``(C) the institution notifies the accrediting 
                agency that the institution intends to cease 
                operations;'';
                    (D) by striking paragraph (7) (as redesignated by 
                subparagraph (B)) and inserting the following:
            ``(7) makes available to the public and the State licensing 
        or authorizing agency, and submits to the Secretary, a summary 
        of agency or association actions, including--
                    ``(A) the award of accreditation or reaccreditation 
                of an institution;
                    ``(B) final denial, withdrawal, suspension, or 
                termination of accreditation of an institution, and any 
                findings

[[Page 122 STAT. 3327]]

                made in connection with the action taken, together with 
                the official comments of the affected institution; and
                    ``(C) any other adverse action taken with respect to 
                an institution or placement on probation of an 
                institution;'';
                    (E) in paragraph (8) (as redesignated by 
                subparagraph (B)), by striking the period and inserting 
                ``; and''; and
                    (F) by adding at the end the following:
            ``(9) confirms, as a part of the agency's or association's 
        review for accreditation or reaccreditation, that the 
        institution has transfer of credit policies--
                    ``(A) that are publicly disclosed; and
                    ``(B) that include a statement of the criteria 
                established by the institution regarding the transfer of 
                credit earned at another institution of higher 
                education.'';
            (3) in subsection (g), by adding at the end the following: 
        ``Nothing in this section shall be construed to permit the 
        Secretary to establish any criteria that specifies, defines, or 
        prescribes the standards that accrediting agencies or 
        associations shall use to assess any institution's success with 
        respect to student achievement.'';
            (4) in subsection (o), by adding at the end the following: 
        ``Notwithstanding any other provision of law, the Secretary 
        shall not promulgate any regulation with respect to the 
        standards of an accreditation agency or association described in 
        subsection (a)(5).''; and
            (5) by adding at the end the following new subsection:

    ``(p) Rule of Construction.--Nothing in subsection (a)(5) shall be 
construed to restrict the ability of--
            ``(1) an accrediting agency or association to set, with the 
        involvement of its members, and to apply, accreditation 
        standards for or to institutions or programs that seek review by 
        the agency or association; or
            ``(2) an institution to develop and use institutional 
        standards to show its success with respect to student 
        achievement, which achievement may be considered as part of any 
        accreditation review.

    ``(q) Review of Scope Changes.--The Secretary shall require a 
review, at the next available meeting of the National Advisory Committee 
on Institutional Quality and Integrity, of any change in scope 
undertaken by an agency or association under subsection (a)(4)(B)(i)(II) 
if the enrollment of an institution that offers distance education or 
correspondence education that is accredited by such agency or 
association increases by 50 percent or more within any one institutional 
fiscal year.''.
SEC. 496. ELIGIBILITY AND CERTIFICATION PROCEDURES.

    Section 498 (20 U.S.C. 1099c) is amended--
            (1) in subsection (d)(1)(B), by inserting ``and'' after the 
        semicolon; and
            (2) by adding at the end the following:

    ``(k) Treatment of Teach-Outs at Additional Locations.--
            ``(1) In general.--A location of a closed institution of 
        higher education shall be eligible as an additional location of 
        an eligible institution of higher education, as defined pursuant 
        to regulations of the Secretary, for the purposes of a teach-out 
        described in section 487(f), if such teach-out has been approved 
        by the institution's accrediting agency.

[[Page 122 STAT. 3328]]

            ``(2) Special rule.--An institution of higher education that 
        conducts a teach-out through the establishment of an additional 
        location described in paragraph (1) shall be permitted to 
        establish a permanent additional location at a closed 
        institution and shall not be required--
                    ``(A) to meet the requirements of sections 
                102(b)(1)(E) and 102(c)(1)(C) for such additional 
                location; or
                    ``(B) to assume the liabilities of the closed 
                institution.''.
SEC. 497. PROGRAM REVIEW AND DATA.

    Section 498A(b) (20 U.S.C. 1099c-1(b)) is amended--
            (1) in paragraph (4), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (5) by striking the period and inserting a 
        semicolon; and
            (3) by adding at the end the following:
            ``(6) provide to an institution of higher education an 
        adequate opportunity to review and respond to any program review 
        report and relevant materials related to the report before any 
        final program review report is issued;
            ``(7) review and take into consideration an institution of 
        higher education's response in any final program review report 
        or audit determination, and include in the report or 
        determination--
                    ``(A) a written statement addressing the institution 
                of higher education's response;
                    ``(B) a written statement of the basis for such 
                report or determination; and
                    ``(C) a copy of the institution's response; and
            ``(8) maintain and preserve at all times the confidentiality 
        of any program review report until the requirements of 
        paragraphs (6) and (7) are met, and until a final program review 
        is issued, other than to the extent required to comply with 
        paragraph (5), except that the Secretary shall promptly disclose 
        any and all program review reports to the institution of higher 
        education under review.''.
SEC. 498. REVIEW OF REGULATIONS.

    Section 498B (20 U.S.C. 1099c-2) is amended by striking subsection 
(d).

             PART I--COMPETITIVE LOAN AUCTION PILOT PROGRAM

SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM EVALUATION.

    Section 499 (20 U.S.C. 1099d) is amended--
            (1) in subsection (b)(3)--
                    (A) in subparagraph (B)--
                          (i) in clause (i), by striking ``and'' after 
                      the semicolon;
                          (ii) in clause (ii), by striking the period at 
                      the end of the sentence and inserting ``; and''; 
                      and
                          (iii) by adding at the end the following:
                          ``(iii) a commitment from such eligible lender 
                      that, if the lender has a winning bid under 
                      subparagraph (F), the lender will enter into the 
                      agreement required under subparagraph (G).'';

[[Page 122 STAT. 3329]]

                    (B) by striking subparagraph (G) and inserting the 
                following:
                    ``(G) Agreement with secretary; compliance.--
                          ``(i) Agreement.--Each eligible lender having 
                      a winning bid under subparagraph (F) shall enter 
                      into an agreement with the Secretary under which 
                      the eligible lender--
                                    ``(I) agrees to originate eligible 
                                Federal PLUS Loans under this paragraph 
                                to each borrower who--
                                            ``(aa) seeks an eligible 
                                        Federal PLUS Loan under this 
                                        paragraph to enable a dependent 
                                        student to attend an institution 
                                        of higher education within the 
                                        State;
                                            ``(bb) is eligible for an 
                                        eligible Federal PLUS Loan; and
                                            ``(cc) elects to borrow from 
                                        the eligible lender; and
                                    ``(II) agrees to accept a special 
                                allowance payment (after the application 
                                of section 438(b)(2)(I)(v)) from the 
                                Secretary with respect to the eligible 
                                Federal PLUS Loans originated under 
                                subclause (I) in the amount proposed in 
                                the second lowest winning bid described 
                                in subparagraph (F) for the applicable 
                                State auction.
                          ``(ii) Compliance.--If an eligible lender with 
                      a winning bid under subparagraph (F) fails to 
                      enter into the agreement required under clause 
                      (i), or fails to comply with the terms of such 
                      agreement, the Secretary may sanction such 
                      eligible lender through one or more of the 
                      following:
                                    ``(I) The assessment of a penalty on 
                                such eligible lender for any eligible 
                                Federal PLUS Loans that such eligible 
                                lender fails to originate under this 
                                paragraph in accordance with the 
                                agreement required under clause (i), in 
                                the amount of the additional costs 
                                (including the amounts of any increase 
                                in special allowance payments) incurred 
                                by the Secretary in obtaining another 
                                eligible lender to originate such 
                                eligible Federal PLUS Loans. The 
                                Secretary shall collect such penalty 
                                by--
                                            ``(aa) reducing the amount 
                                        of any payments otherwise due to 
                                        such eligible lender from the 
                                        Secretary by the amount of the 
                                        penalty; or
                                            ``(bb) requesting any other 
                                        Federal agency to reduce the 
                                        amount of any payments due to 
                                        such eligible lender from such 
                                        agency by the amount of the 
                                        penalty, in accordance with 
                                        section 3716 of title 31, United 
                                        States Code.
                                    ``(II) A prohibition of bidding by 
                                such lender in other auctions under this 
                                section.
                                    ``(III) The limitation, suspension, 
                                or termination of such eligible lender's 
                                participation in the loan program under 
                                part B.

[[Page 122 STAT. 3330]]

                                    ``(IV) Any other enforcement action 
                                the Secretary is authorized to take 
                                under part B.''; and
                    (C) by striking subparagraph (J) and inserting the 
                following:
                    ``(J) Guarantee against losses.--Each eligible 
                Federal PLUS Loan originated under this paragraph shall 
                be insured by a guaranty agency in accordance with part 
                B, except that, notwithstanding section 428(b)(1)(G), 
                such insurance shall be in an amount equal to 99 percent 
                of the unpaid principal and interest due on the loan.''; 
                and
            (2) by adding at the end the following new subsections:

    ``(c) Required Initial Evaluation.--The Secretary and Secretary of 
the Treasury shall jointly conduct an evaluation, in consultation with 
the Office of Management and Budget, the Congressional Budget Office, 
and the Comptroller General, of the pilot program carried out by the 
Secretary under this section. The evaluation shall determine--
            ``(1) the extent of the savings to the Federal Government 
        that are generated through the pilot program, compared to the 
        cost the Federal Government would have incurred in operating the 
        PLUS loan program under section 428B in the absence of the pilot 
        program;
            ``(2) the number of lenders that participated in the pilot 
        program, and the extent to which the pilot program generated 
        competition among lenders to participate in the auctions under 
        the pilot program;
            ``(3) the number and volume of loans made under the pilot 
        program in each State;
            ``(4) the effect of the transition to and operation of the 
        pilot program on the ability of--
                    ``(A) lenders participating in the pilot program to 
                originate loans made through the pilot program smoothly 
                and efficiently;
                    ``(B) institutions of higher education participating 
                in the pilot program to disburse loans made through the 
                pilot program smoothly and efficiently; and
                    ``(C) parents to obtain loans made through the pilot 
                program in a timely and efficient manner;
            ``(5) the differential impact, if any, of the auction among 
        the States, including between rural and non-rural States; and
            ``(6) the feasibility of using the mechanism piloted to 
        operate the other loan programs under part B of this title.

    ``(d) Reports.--
            ``(1) In general.--The Secretary and the Secretary of the 
        Treasury shall submit to the authorizing committees--
                    ``(A) not later than September 1, 2010, a 
                preliminary report regarding the findings of the 
                evaluation described in subsection (c);
                    ``(B) not later than September 1, 2012, an interim 
                report regarding such findings; and
                    ``(C) not later than September 1, 2013, a final 
                report regarding such findings.
            ``(2) Contents.--The Secretary shall include, in each report 
        required under subparagraphs (A), (B), and (C) of paragraph (1), 
        any recommendations, that are based on the findings of the 
        evaluation under subsection (c), for--

[[Page 122 STAT. 3331]]

                    ``(A) improving the operation and administration of 
                the auction; and
                    ``(B) improving the operation and administration of 
                other loan programs under part B.''.

                    TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. AUTHORIZED ACTIVITIES.

    Section 503(b) (20 U.S.C. 1101b(b)) is amended--
            (1) by redesignating paragraphs (6), (7), (8), (9), (10), 
        (11), (12), (13), and (14), as paragraphs (7), (8), (9), (10), 
        (11), (12), (13), (14), and (16), respectively;
            (2) in paragraph (5), by inserting ``, including innovative 
        and customized instruction courses (which may include remedial 
        education and English language instruction) designed to help 
        retain students and move the students rapidly into core courses 
        and through program completion'' before the period at the end;
            (3) by inserting after paragraph (5) the following:
            ``(6) Articulation agreements and student support programs 
        designed to facilitate the transfer from two-year to four-year 
        institutions.'';
            (4) by inserting after paragraph (14) (as redesignated by 
        paragraph (1)) the following:
            ``(15) Providing education, counseling services, or 
        financial information designed to improve the financial literacy 
        and economic literacy of students or the students' families, 
        especially with regard to student indebtedness and student 
        assistance programs under title IV.''; and
            (5) in paragraph (11) (as redesignated by paragraph (1)), by 
        striking ``distance learning academic instruction capabilities'' 
        and inserting ``distance education technologies''.
SEC. 502. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.

    (a) Amendments.--Title V (20 U.S.C. 1101 et seq.) is amended--
            (1) by <<NOTE: 20 USC 1103.>> redesignating part B as part 
        C;
            (2) by <<NOTE: 20 USC 1103-1103g.>> redesignating sections 
        511 through 518 as sections 521 through 528, respectively; and
            (3) by inserting after section 505 the following:

    ``PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
                                AMERICANS

``SEC. 511. <<NOTE: 20 USC 1102.>> PURPOSES.

    ``The purposes of this part are--
            ``(1) to expand postbaccalaureate educational opportunities 
        for, and improve the academic attainment of, Hispanic students; 
        and
            ``(2) to expand the postbaccalaureate academic offerings and 
        enhance the program quality in the institutions of higher 
        education that are educating the majority of Hispanic college 
        students and helping large numbers of Hispanic and low-income 
        students complete postsecondary degrees.

[[Page 122 STAT. 3332]]

``SEC. 512. <<NOTE: 20 USC 1102a.>> PROGRAM AUTHORITY AND 
                        ELIGIBILITY.

    ``(a) Program Authorized.-- <<NOTE: Grants.>> Subject to the 
availability of funds appropriated to carry out this part, the Secretary 
shall award grants, on a competitive basis, to eligible institutions to 
enable the eligible institutions to carry out the authorized activities 
described in section 513.

    ``(b) Eligibility.--For the purposes of this part, an `eligible 
institution' means an institution of higher education that--
            ``(1) is a Hispanic-serving institution (as defined in 
        section 502); and
            ``(2) offers a postbaccalaureate certificate or 
        postbaccalaureate degree granting program.
``SEC. 513. <<NOTE: 20 USC 1102b.>> AUTHORIZED ACTIVITIES.

    ``Grants awarded under this part shall be used for one or more of 
the following activities:
            ``(1) Purchase, rental, or lease of scientific or laboratory 
        equipment for educational purposes, including instructional and 
        research purposes.
            ``(2) Construction, maintenance, renovation, and improvement 
        of classrooms, libraries, laboratories, and other instructional 
        facilities, including purchase or rental of telecommunications 
        technology equipment or services.
            ``(3) Purchase of library books, periodicals, technical and 
        other scientific journals, microfilm, microfiche, and other 
        educational materials, including telecommunications program 
        materials.
            ``(4) Support for low-income postbaccalaureate students 
        including outreach, academic support services, mentoring, 
        scholarships, fellowships, and other financial assistance to 
        permit the enrollment of such students in postbaccalaureate 
        certificate and postbaccalaureate degree granting programs.
            ``(5) Support of faculty exchanges, faculty development, 
        faculty research, curriculum development, and academic 
        instruction.
            ``(6) Creating or improving facilities for Internet or other 
        distance education technologies, including purchase or rental of 
        telecommunications technology equipment or services.
            ``(7) Collaboration with other institutions of higher 
        education to expand postbaccalaureate certificate and 
        postbaccalaureate degree offerings.
            ``(8) Other activities proposed in the application submitted 
        pursuant to section 514 that--
                    ``(A) contribute to carrying out the purposes of 
                this part; and
                    ``(B) are approved by the Secretary as part of the 
                review and acceptance of such application.
``SEC. 514. <<NOTE: 20 USC 1102c.>> APPLICATION AND DURATION.

    ``(a) Application.--Any eligible institution may apply for a grant 
under this part by submitting an application to the Secretary at such 
time and in such manner as the Secretary may require. Such application 
shall demonstrate how the grant funds will be used to improve 
postbaccalaureate education opportunities for Hispanic and low-income 
students.
    ``(b) Duration.--Grants under this part shall be awarded for a 
period not to exceed five years.

[[Page 122 STAT. 3333]]

    ``(c) Limitation.--The Secretary may not award more than one grant 
under this part in any fiscal year to any Hispanic-serving 
institution.''.
    (b) Conforming Amendments.--Title V (20 U.S.C. 1101 et seq.) is 
amended--
            (1) in section <<NOTE: 20 USC 1101a.>> 502--
                    (A) in subsection (a)(2)(A)(ii), by striking 
                ``section 512(b)'' and inserting ``section 522(b)''; and
                    (B) in subsection (b)(2), by striking ``section 
                512(a)'' and inserting ``section 522(a)'';
            (2) in section 521(c)(6) <<NOTE: 20 USC 1103.>> (as 
        redesignated by subsection (a)(2)), by striking ``section 516'' 
        and inserting ``section 526''; and
            (3) in section 526 <<NOTE: 20 USC 1103e.>> (as redesignated 
        by subsection (a)(2)), by striking ``section 518'' and inserting 
        ``section 528''.
SEC. 503. APPLICATIONS.

    Section 521(b)(1)(A) (as redesignated by section 502(a)(2)) (20 
U.S.C. 1103(b)(1)(A)) is amended by striking ``subsection (b)'' and 
inserting ``subsection (c)''.
SEC. 504. COOPERATIVE ARRANGEMENTS.

    Section 524(a) (as redesignated by section 502(a)(2)) (20 U.S.C. 
1103c(a)) is amended by striking ``section 503'' and inserting 
``sections 503 and 513''.
SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

    Section 528(a) (as redesignated by section 502(a)(2)) (20 U.S.C. 
1103g(a)) is amended to read as follows:
    ``(a) Authorizations.--
            ``(1) Parts a and c.--There are authorized to be 
        appropriated to carry out parts A and C $175,000,000 for fiscal 
        year 2009 and such sums as may be necessary for each of the five 
        succeeding fiscal years.
            ``(2) Part b.--There are authorized to be appropriated to 
        carry out part B $100,000,000 for fiscal year 2009 and such sums 
        as may be necessary for each of the five succeeding fiscal 
        years.''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

SEC. 601. FINDINGS; PURPOSES; CONSULTATION; SURVEY.

    Section 601 (20 U.S.C. 1121) is amended--
            (1) in the section heading, by striking ``and purposes'' and 
        inserting ``; purposes; consultation; survey'';
            (2) in subsection (a)(3), by striking ``post-Cold War'';
            (3) in subsection (b)(1)(D), by inserting ``, including 
        through linkages with overseas institutions'' before the 
        semicolon; and
            (4) by adding at the end the following:

    ``(c) Consultation.--
            ``(1) In general.--The Secretary shall, prior to requesting 
        applications for funding under this title during each grant 
        cycle, consult with and receive recommendations regarding 
        national need for expertise in foreign languages and world

[[Page 122 STAT. 3334]]

        regions from the head officials of a wide range of Federal 
        agencies.
            ``(2) Considering recommendations; providing information.--
        The Secretary--
                    ``(A) may take into account the recommendations 
                described in paragraph (1); and
                    ``(B) shall--
                          ``(i) provide information collected under 
                      paragraph (1) when requesting applications for 
                      funding under this title; and
                          ``(ii) make available to applicants a list of 
                      areas identified as areas of national need.

    ``(d) Survey.--The Secretary shall assist grantees in developing a 
survey to administer to students who have completed programs under this 
title to determine postgraduate employment, education, or training. 
All <<NOTE: Deadline. Reports.>> grantees, where applicable, shall 
administer such survey once every two years and report survey results to 
the Secretary.''.
SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND 
                        PROGRAMS.

    Section 602 (20 U.S.C. 1122) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking subparagraph (A) 
                and inserting the following:
                    ``(A) In <<NOTE: Grants.>> general.--The Secretary 
                is authorized to make grants to institutions of higher 
                education or consortia of such institutions for the 
                purpose of establishing, strengthening, and operating--
                          ``(i) comprehensive foreign language and area 
                      or international studies centers and programs; and
                          ``(ii) a diverse network of undergraduate 
                      foreign language and area or international studies 
                      centers and programs.'';
                    (B) in paragraph (2)--
                          (i) by striking ``and'' at the end of 
                      subparagraph (G);
                          (ii) by striking the period at the end of 
                      subparagraph (H) and inserting a semicolon; and
                          (iii) by inserting after subparagraph (H) the 
                      following new subparagraphs:
                    ``(I) supporting instructors of the less commonly 
                taught languages; and
                    ``(J) projects that support students in the science, 
                technology, engineering, and mathematics fields to 
                achieve foreign language proficiency.''; and
                    (C) in paragraph (4)--
                          (i) in subparagraph (C)--
                                    (I) by striking ``Programs of 
                                linkage or outreach'' and inserting 
                                ``Partnerships or programs of linkage 
                                and outreach''; and
                                    (II) by inserting ``, including 
                                Federal or State scholarship programs 
                                for students in related areas'' before 
                                the period at the end;
                          (ii) in subparagraph (E)--
                                    (I) by striking ``foreign area'' and 
                                inserting ``area studies'';

[[Page 122 STAT. 3335]]

                                    (II) by striking ``of linkage and 
                                outreach''; and
                                    (III) by striking ``(C), and (D)'' 
                                and inserting ``(D), and (E)'';
                          (iii) by redesignating subparagraphs (C) 
                      through (E) (as so amended) as subparagraphs (D) 
                      through (F), respectively; and
                          (iv) by inserting after subparagraph (B) the 
                      following:
                    ``(C) Programs of linkage or outreach between or 
                among--
                          ``(i) postsecondary programs or departments in 
                      foreign language, area studies, or other 
                      international fields; and
                          ``(ii) State educational agencies or local 
                      educational agencies.'';
            (2) in subsection (b)--
                    (A) in the subsection heading, by striking 
                ``Graduate''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Eligible students.--A student receiving a stipend 
        described in paragraph (1) shall be engaged--
                    ``(A) in an instructional program with stated 
                performance goals for functional foreign language use or 
                in a program developing such performance goals, in 
                combination with area studies, international studies, or 
                the international aspects of a professional studies 
                program; and
                    ``(B)(i) in the case of an undergraduate student, in 
                the intermediate or advanced study of a less commonly 
                taught language; or
                    ``(ii) in the case of a graduate student, in 
                graduate study in connection with a program described in 
                subparagraph (A), including--
                          ``(I) predissertation level study;
                          ``(II) preparation for dissertation research;
                          ``(III) dissertation research abroad; or
                          ``(IV) dissertation writing.''; and
            (3) by striking subsection (d) and inserting the following:

    ``(d) Allowances.--
            ``(1) Graduate level recipients.--A stipend awarded to a 
        graduate level recipient may include allowances for dependents 
        and for travel for research and study in the United States and 
        abroad.
            ``(2) Undergraduate level recipients.--A stipend awarded to 
        an undergraduate level recipient may include an allowance for 
        educational programs in the United States or educational 
        programs abroad that--
                    ``(A) are closely linked to the overall goals of the 
                recipient's course of study; and
                    ``(B) have the purpose of promoting foreign language 
                fluency and knowledge of foreign cultures.

    ``(e) Application.--Each institution of higher education or 
consortium of such institutions desiring a grant under this section 
shall submit an application to the Secretary at such time, in such 
manner, and accompanied by such information and assurances as the 
Secretary may require. Each such application shall include--

[[Page 122 STAT. 3336]]

            ``(1) an explanation of how the activities funded by the 
        grant will reflect diverse perspectives and a wide range of 
        views and generate debate on world regions and international 
        affairs; and
            ``(2) a description of how the applicant will encourage 
        government service in areas of national need, as identified by 
        the Secretary, as well as in areas of need in the education, 
        business, and nonprofit sectors.''.
SEC. 603. LANGUAGE RESOURCE CENTERS.

    Section 603(c) (20 U.S.C. 1123(c)) is amended by inserting ``reflect 
the purposes of this part and'' after ``shall''.
SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE 
                        PROGRAMS.

    Section 604 (20 U.S.C. 1124) is amended--
            (1) in subsection (a)(1), by striking ``combinations'' each 
        place it appears and inserting ``consortia'';
            (2) in subsection (a)(2)--
                    (A) in subparagraph (B), by amending clause (ii) to 
                read as follows:
                          ``(ii) pre-service teacher training and in-
                      service teacher professional development;'';
                    (B) by redesignating subparagraphs (I) through (M) 
                as subparagraphs (J) through (N), respectively; and
                    (C) by inserting after subparagraph (H) the 
                following new subparagraph:
                    ``(I) the provision of grants for educational 
                programs abroad that--
                          ``(i) are closely linked to the program's 
                      overall goals; and
                          ``(ii) have the purpose of promoting foreign 
                      language fluency and knowledge of world 
                      regions;'';
            (3) in subsection (a)(4)(B), by inserting ``that 
        demonstrates a need for a waiver or reduction'' before the 
        period at the end;
            (4) in subsection (a)(6), by inserting ``reflect the 
        purposes of this part and'' after ``shall'';
            (5) in subsection (a)(7)--
                    (A) in subparagraph (C), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(E) a description of how the applicant will 
                provide information to students regarding federally 
                funded scholarship programs in related areas;
                    ``(F) an explanation of how the activities funded by 
                the grant will reflect diverse perspectives and a wide 
                range of views and generate debate on world regions and 
                international affairs, where applicable; and
                    ``(G) a description of how the applicant will 
                encourage service in areas of national need, as 
                identified by the Secretary.''; and
            (6) in subsection (c)--
                    (A) by striking ``(c) Funding Support.--The 
                Secretary'' and inserting the following:

    ``(c) Funding Support.--

[[Page 122 STAT. 3337]]

            ``(1) In general.--The Secretary'';
                    (B) by striking ``10'' and inserting ``20''; and
                    (C) by adding at the end the following:
            ``(2) Grantees.--Of the total amount of grant funds awarded 
        to a grantee under this section, the grantee may use not more 
        than ten percent of such funds for the activity described in 
        subsection (a)(2)(I).''.
SEC. 605. RESEARCH; STUDIES.

    Section 605(a) (20 U.S.C. 1125(a)) is amended--
            (1) in paragraph (8), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (9), by striking the period and inserting a 
        semicolon; and
            (3) by adding at the end the following:
            ``(10) evaluation of the extent to which programs assisted 
        under this title reflect diverse perspectives and a wide range 
        of views and generate debate on world regions and international 
        affairs, as described in the grantee's application;
            ``(11) the systematic collection, analysis, and 
        dissemination of data that contribute to achieving the purposes 
        of this part; and
            ``(12) support for programs or activities to make data 
        collected, analyzed, or disseminated under this section publicly 
        available and easy to understand.''.
SEC. 606. TECHNOLOGICAL INNOVATION AND COOPERATION FOR FOREIGN 
                        INFORMATION ACCESS.

    Section 606 (20 U.S.C. 1126) is amended--
            (1) in subsection (a)--
                    (A) by striking ``or consortia of such institutions 
                or libraries'' and inserting ``or partnerships between 
                such institutions and other such institutions, 
                libraries, or nonprofit educational organizations'';
                    (B) by striking ``new electronic technologies'' and 
                inserting ``electronic technologies'';
                    (C) by inserting ``from foreign sources'' after 
                ``disseminate information'';
                    (D) by striking ``(a) Authority.-- The Secretary'' 
                and inserting the following:

    ``(a) Authority.--
            ``(1) In general.--The Secretary''; and
                    (E) by adding at the end the following:
            ``(2) Grant recipients.--The Secretary may award grants 
        under this section to carry out the activities authorized under 
        this section to the following:
                    ``(A) An institution of higher education.
                    ``(B) A public or nonprofit private library.
                    ``(C) A partnership of an institution of higher 
                education and one or more of the following:
                          ``(i) Another institution of higher education.
                          ``(ii) A library.
                          ``(iii) A nonprofit educational 
                      organization.'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``to facilitate 
                access to'' and inserting ``to acquire, facilitate 
                access to,'';
                    (B) in paragraph (3), by inserting ``or standards 
                for'' after ``means of'';

[[Page 122 STAT. 3338]]

                    (C) in paragraph (6), by striking ``and'' after the 
                semicolon;
                    (D) in paragraph (7), by striking the period and 
                inserting a semicolon; and
                    (E) by adding at the end the following:
            ``(8) to establish linkages to facilitate carrying out the 
        activities described in this subsection between--
                    ``(A) the institutions of higher education, 
                libraries, and partnerships receiving grants under this 
                section; and
                    ``(B) institutions of higher education, nonprofit 
                educational organizations, and libraries overseas; and
            ``(9) to carry out other activities that the Secretary 
        determines are consistent with the purpose of the grants awarded 
        under this section.''; and
            (3) in subsection (c), by striking ``institution or 
        consortium'' and inserting ``institution of higher education, 
        library, or partnership''.
SEC. 607. SELECTION OF CERTAIN GRANT RECIPIENTS.

    Section 607 (20 U.S.C. 1127) is amended--
            (1) in subsection (a), by striking ``evaluates the 
        applications for comprehensive and undergraduate language and 
        area centers and programs.'' and inserting ``evaluates--
            ``(1) the applications for comprehensive foreign language 
        and area or international studies centers and programs; and
            ``(2) the applications for undergraduate foreign language 
        and area or international studies centers and programs.''; and
            (2) in subsection (b), by adding at the end the following: 
        ``In keeping with the purposes of this part, the Secretary shall 
        take into account the degree to which activities of centers, 
        programs, and fellowships at institutions of higher education 
        address national needs, and generate information for and 
        disseminate information to the public. The Secretary shall also 
        consider an applicant's record of placing students into 
        postgraduate employment, education, or training in areas of 
        national need and an applicant's stated efforts to increase the 
        number of such students that go into such placements.''.
SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.

    Section 609 (20 U.S.C. 1128a) is amended by adding at the end the 
following:
    ``(e) Application.--Each center desiring to receive a grant or 
contract under this section shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such information and 
assurances as the Secretary may require.''.
SEC. 609. AUTHORIZATION OF APPROPRIATIONS FOR INTERNATIONAL AND 
                        FOREIGN LANGUAGE STUDIES.

    Section 610 (20 U.S.C. 1128b) is amended--
            (1) by striking ``$80,000,000'' and inserting ``such sums as 
        may be necessary'';
            (2) by striking ``1999'' and inserting ``2009''; and
            (3) by striking ``4'' and inserting ``five''.
SEC. 610. CONFORMING AMENDMENTS.

    (a) Sections 603(a), 604(a)(5), and 612 (20 U.S.C. 1123(a), 
1124(a)(5), 1130-1) are each amended by striking ``combinations'' each 
place it appears and inserting ``consortia''.

[[Page 122 STAT. 3339]]

    (b) Section 612 (20 U.S.C. 1130-1) is further amended by striking 
``combination'' each place it appears and inserting ``consortium''.
SEC. 611. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.

    (a) Centers for International Business Education.--Section 612 (20 
U.S.C. 1130-1) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1) and (2) as 
                paragraphs (2) and (3), respectively; and
                    (B) by inserting before paragraph (2) (as 
                redesignated by subparagraph (A)) the following:
            ``(1) Purpose.--The purpose of this section is to coordinate 
        the programs of the Federal Government in the areas of research, 
        education, and training in international business and trade 
        competitiveness.'';
            (2) in subsection (c)(2)----
                    (A) in subparagraph (E), by inserting ``(including 
                those that are eligible to receive assistance under part 
                A or B of title III or under title V)'' after ``other 
                institutions of higher education'';
                    (B) by striking ``and'' at the end of subparagraph 
                (E);
                    (C) by redesignating subparagraph (F) as 
                subparagraph (G); and
                    (D) by inserting the following new subparagraph 
                after subparagraph (E):
                    ``(F) programs encouraging the advancement and 
                understanding of technology-related disciplines, 
                including manufacturing software systems and technology 
                management; and''; and
            (3) in subsection (f)(3), by inserting ``, and that diverse 
        perspectives will be made available to students in programs 
        under this section'' before the semicolon.

    (b) Education and Training Programs.--Section 613(c) (20 U.S.C. 
1130a(c)) is amended by adding at the end the following: ``Each such 
application shall include an assurance that, where applicable, the 
activities funded by the grant will reflect diverse perspectives and a 
wide range of views on world regions and international affairs.''.
    (c) Authorization of Appropriations.--Section 614 (20 U.S.C. 1130b) 
is amended--
            (1) in subsection (a)--
                    (A) by striking ``$11,000,000'' and inserting ``such 
                sums as may be necessary'';
                    (B) by striking ``1999'' and inserting ``2009''; and
                    (C) by striking ``4'' and inserting ``five''; and
            (2) in subsection (b)--
                    (A) by striking ``$7,000,000'' and inserting ``such 
                sums as may be necessary'';
                    (B) by striking ``1999'' and inserting ``2009''; and
                    (C) by striking ``4'' and inserting ``five''.
SEC. 612. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT 
                        PROGRAM.

    Section 621 (20 U.S.C. 1131) is amended--
            (1) in subsection (a), by striking the second sentence and 
        inserting the following: ``The Institute shall conduct a program 
        to enhance the international competitiveness of the United

[[Page 122 STAT. 3340]]

        States by increasing the participation of underrepresented 
        populations in the international service, including private 
        international voluntary organizations and the foreign service of 
        the United States.'';
            (2) in subsection (b)(1)--
                    (A) by striking subparagraph (B);
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) A tribally controlled college or university or 
                Alaska Native or Native Hawaiian-serving institution 
                eligible for assistance under part A or B of title III, 
                or an institution eligible for assistance under title V.
                    ``(C) An institution of higher education that serves 
                substantial numbers of underrepresented minority 
                students.''; and
            (3) in subsection (c)--
                    (A) by striking ``(c) Application.--Each'' and 
                inserting the following:

    ``(c) Application.--
            ``(1) In general.--Each''; and
                    (B) by adding at the end the following:
            ``(2) Content of application.--Each application submitted 
        under paragraph (1) shall include a description of how the 
        activities funded by the grant will reflect diverse perspectives 
        and a wide range of views and generate debate on world regions 
        and international affairs, where applicable.''.
SEC. 613. INSTITUTIONAL DEVELOPMENT.

    Section 622 (20 U.S.C. 1131-1) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Tribally Controlled Colleges or 
                Universities'' and inserting ``tribally controlled 
                colleges or universities''; and
                    (B) by striking ``international affairs programs.'' 
                and inserting ``international affairs, international 
                business, and foreign language study programs, including 
                the teaching of foreign languages, at such colleges, 
                universities, and institutions, respectively, which may 
                include collaboration with institutions of higher 
                education that receive funding under this title''; and
            (2) in subsection (c)--
                    (A) by striking paragraphs (1) and (3);
                    (B) by redesignating paragraphs (2) and (4) as 
                paragraphs (1) and (2), respectively; and
                    (C) in paragraph (1) (as redesignated by 
                subparagraph (B)), by inserting ``and'' after the 
                semicolon.
SEC. 614. STUDY ABROAD PROGRAM.

    Section 623(a) (20 U.S.C. 1131a(a)) is amended--
            (1) by striking ``as defined in section 322 of this Act''; 
        and
            (2) by striking ``tribally controlled Indian community 
        colleges as defined in the Tribally Controlled Community College 
        Assistance Act of 1978'' and inserting ``tribally controlled 
        colleges or universities, Alaska Native-serving, Native 
        Hawaiian-serving, and Hispanic-serving institutions''.

[[Page 122 STAT. 3341]]

SEC. 615. ADVANCED DEGREE IN INTERNATIONAL RELATIONS.

    Section 624 (20 U.S.C. 1131b) is amended--
            (1) by striking ``masters'' in the heading of such section 
        and inserting ``advanced'';
            (2) by striking ``a masters degree in international 
        relations'' and inserting ``an advanced degree in international 
        relations, international affairs, international economics, or 
        other academic areas related to the Institute fellow's career 
        objectives''; and
            (3) by striking ``The masters degree program designed by the 
        consortia'' and inserting ``The advanced degree study program 
        shall be designed by the consortia, consistent with the fellow's 
        career objectives, and''.
SEC. 616. INTERNSHIPS.

    Section 625 (20 U.S.C. 1131c) is amended--
            (1) in subsection (a)--
                    (A) by striking ``as defined in section 322 of this 
                Act'';
                    (B) by striking ``tribally controlled Indian 
                community colleges as defined in the Tribally Controlled 
                Community College Assistance Act of 1978'' and inserting 
                ``tribally controlled colleges or universities, Alaska 
                Native-serving, Native Hawaiian-serving, and Hispanic-
                serving institutions'';
                    (C) by striking ``an international'' and inserting 
                ``international,''; and
                    (D) by striking ``the United States Information 
                Agency'' and inserting ``the Department of State'';
            (2) in subsection (b)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of paragraph (2);
                    (B) by striking ``; and'' at the end of paragraph 
                (3) and inserting a period; and
                    (C) by striking paragraph (4); and
            (3) in subsection (c)(1)--
                    (A) in subparagraph (E), by inserting ``and'' after 
                the semicolon;
                    (B) in subparagraph (F), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (G).
SEC. 617. FINANCIAL ASSISTANCE.

    Part C of title VI (20 U.S.C. 1131 et seq.) is further amended--
            (1) by <<NOTE: 20 USC 1131d-1131f.>> redesignating sections 
        626, 627, and 628 as sections 627, 628, and 629, respectively; 
        and
            (2) by inserting after section 625 the following:
``SEC. 626. <<NOTE: 20 USC 1131c-1.>> FINANCIAL ASSISTANCE.

    ``(a) Authority.--The Institute may provide financial assistance, in 
the form of summer stipends described in subsection (b) and Ralph Bunche 
scholarship assistance described in subsection (c), to low-income 
students to facilitate the participation of the students in the 
Institute's programs under this part.
    ``(b) Summer Stipends.--
            ``(1) Requirements.--A student receiving a summer stipend 
        under this section shall use such stipend to defray the 
        student's cost of participation in a summer institute program 
        funded under this part, including the costs of travel, living,

[[Page 122 STAT. 3342]]

        and educational expenses necessary for the student's 
        participation in such program.
            ``(2) Amount.--A summer stipend awarded to a student under 
        this section shall not exceed $3,000 per summer.

    ``(c) Ralph Bunche Scholarship.--
            ``(1) Requirements.--A student receiving a Ralph Bunche 
        scholarship under this section--
                    ``(A) shall be a full-time student at an institution 
                of higher education who is accepted into a program 
                funded under this part; and
                    ``(B) shall use such scholarship to pay costs 
                related to the cost of attendance, as defined in section 
                472, at the institution of higher education in which the 
                student is enrolled.
            ``(2) Amount and duration.--A Ralph Bunche scholarship 
        awarded to a student under this section shall not exceed $5,000 
        per academic year.''.
SEC. 618. REPORT.

    Section 627 (as redesignated by section 617(1)) (20 U.S.C. 1131d) is 
amended by striking ``annually prepare a report'' and inserting 
``prepare a report once every two years''.
SEC. 619. GIFTS AND DONATIONS.

    Section 628 (as redesignated by section 617(1)) (20 U.S.C. 1131e) is 
amended by striking ``annual report described in section 626'' and 
inserting ``report described in section 627''.
SEC. 620. AUTHORIZATION OF APPROPRIATIONS FOR THE INSTITUTE FOR 
                        INTERNATIONAL PUBLIC POLICY.

    Section 629 (as redesignated by section 617(1)) (20 U.S.C. 1131f) is 
amended--
            (1) by striking ``$10,000,000'' and inserting ``such sums as 
        may be necessary'';
            (2) by striking ``1999'' and inserting ``2009''; and
            (3) by striking ``4 succeeding'' and inserting ``five 
        succeeding''.
SEC. 621. DEFINITIONS.

    Section 631 (20 U.S.C. 1132) is amended--
            (1) by striking paragraph (7);
            (2) by redesignating paragraphs (2), (3), (4), (5), (6), 
        (8), and (9), as paragraphs (7), (4), (8), (2), (10), (6), and 
        (3), respectively;
            (3) in paragraph (2), as redesignated by paragraph (2), by 
        striking ``comprehensive language and area center'' and 
        inserting ``comprehensive foreign language and area or 
        international studies center'';
            (4) in paragraph (3), as redesignated by paragraph (2), by 
        striking the period at the end and inserting a semicolon;
            (5) by inserting after paragraph (4), as redesignated by 
        paragraph (2), the following:
            ``(5) the term `historically Black college and university' 
        has the meaning given the term `part B institution' in section 
        322;'';
            (6) in paragraph (6), as redesignated by paragraph (2), by 
        striking ``and'' after the semicolon;

[[Page 122 STAT. 3343]]

            (7) by inserting after paragraph (8), as redesignated by 
        paragraph (2), the following:
            ``(9) the term `tribally controlled college or university' 
        has the meaning given the term in section 2 of the Tribally 
        Controlled Colleges and Universities Assistance Act of 1978 (25 
        U.S.C. 1801); and''; and
            (8) in paragraph (10), as redesignated by paragraph (2)--
                    (A) by striking ``undergraduate language and area 
                center'' and inserting ``undergraduate foreign language 
                and area or international studies center''; and
                    (B) by striking the semicolon and inserting a 
                period.
SEC. 622. NEW PROVISIONS.

    Part D of title VI (20 U.S.C. 1132) is amended by adding at the end 
the following:
``SEC. 632. <<NOTE: 20 USC 1132-1.>> SPECIAL RULE.

    ``The <<NOTE: Waiver authority.>> Secretary may waive or reduce the 
non-Federal share required under this title for institutions that--
            ``(1) are eligible to receive assistance under part A or B 
        of title III or under title V; and
            ``(2) have submitted a grant application under this section 
        that demonstrates a need for a waiver or reduction, as 
        determined by the Secretary.''.
``SEC. 633. <<NOTE: 20 USC 1132-2.>> RULE OF CONSTRUCTION.

    ``Nothing in this title shall be construed to authorize the 
Secretary to mandate, direct, or control an institution of higher 
education's specific instructional content, curriculum, or program of 
instruction.
``SEC. 634. <<NOTE: 20 USC 1132-3.>> ASSESSMENT.

    ``The Secretary is authorized to assess and ensure compliance with 
all the conditions and terms of grants provided under this title.
``SEC. 635. <<NOTE: 20 USC 1132-4.>> EVALUATION, OUTREACH, AND 
                        INFORMATION.

    ``The Secretary may use not more than one percent of the funds made 
available under this title to carry out program evaluation, national 
outreach, and information dissemination activities relating to the 
programs authorized under this title.
``SEC. 636. <<NOTE: 20 USC 1132-5.>> REPORT.

    ``The Secretary shall, in consultation and collaboration with the 
Secretary of State, the Secretary of Defense, and the heads of other 
relevant Federal agencies, submit a report once every two years that 
identifies areas of national need in foreign language, area, and 
international studies as such studies relate to government, education, 
business, and nonprofit needs, and a plan to address those needs. 
The <<NOTE: Public information.>> report shall be provided to the 
authorizing committees and made available to the public.
``SEC. 637. SCIENCE <<NOTE: 20 USC 1132-6.>> AND TECHNOLOGY 
                        ADVANCED FOREIGN LANGUAGE EDUCATION GRANT 
                        PROGRAM.

    ``(a) Purpose.--It is the purpose of this section to support 
programs in institutions of higher education that--
            ``(1) encourage students to develop--
                    ``(A) an understanding of science and technology; 
                and
                    ``(B) foreign language proficiency;

[[Page 122 STAT. 3344]]

            ``(2) foster future international scientific collaboration;
            ``(3) provide for professional development opportunities for 
        elementary school and secondary school teachers of critical 
        foreign languages to increase the number of highly qualified 
        teachers in critical foreign languages; and
            ``(4) increase the number of United States students who 
        achieve the highest level of proficiency in foreign languages 
        critical to the security and competitiveness of the Nation.

    ``(b) Development.--The Secretary shall develop a program for the 
awarding of grants to institutions of higher education that develop 
innovative programs for the teaching of foreign languages, which may 
include the preparation of teachers to teach foreign languages.
    ``(c) Regulations and Requirements.--The Secretary shall promulgate 
regulations for the awarding of grants under subsection (b). Such 
regulations may require institutions of higher education to use grant 
funds for, among other things--
            ``(1) the development of an on-campus cultural awareness 
        program by which students attend classes taught in a foreign 
        language and study the science and technology developments and 
        practices in a non-English speaking country;
            ``(2) immersion programs where students take science or 
        technology related course work in a non-English speaking 
        country;
            ``(3) other programs, such as summer workshops, that 
        emphasize the intense study of a foreign language and science 
        technology;
            ``(4) if applicable, recruiting highly qualified teachers in 
        critical foreign languages, and providing professional 
        development activities for such teachers at the elementary 
        school and secondary school levels; and
            ``(5) providing innovative opportunities for students that 
        will allow for critical language learning, such as immersion 
        environments, intensive study opportunities, internships, and 
        distance learning.

    ``(d) Grant Distribution.--In distributing grants to institutions of 
higher education under this section, the Secretary shall give priority 
to--
            ``(1) institutions that have programs focusing on curricula 
        that combine the study of foreign languages and the study of 
        science and technology and produce graduates who have both 
        skills; and
            ``(2) institutions teaching critical foreign languages.

    ``(e) Report on Best Practices.--Not later than one year after the 
date of enactment of this section, the Secretary shall--
            ``(1) conduct <<NOTE: Study.>> a study to identify the best 
        practices to strengthen the role of institutions of higher 
        education that receive funding under title III or title V in 
        increasing the critical foreign language education efforts in 
        the United States; and
            ``(2) submit a report on the results of such study to the 
        authorizing committees.

    ``(f) Appropriations Authorized.--There are authorized to be 
appropriated to carry out this section, such sums as may be necessary 
for fiscal year 2009 and for each subsequent fiscal year.

[[Page 122 STAT. 3345]]

``SEC. 638. <<NOTE: 20 USC 1132-7.>> REPORTING BY INSTITUTIONS.

    ``(a) Applicability.--The data requirement in subsection (b) shall 
apply to an institution of higher education that receives funds for a 
center or program under this title if--
            ``(1) the amount of the contribution (including cash and the 
        fair market value of any property) received from any foreign 
        government or from a foreign private sector corporation or 
        foundation during any fiscal year exceeds $250,000 in the 
        aggregate; and
            ``(2) the aggregate contribution, or a significant part of 
        the aggregate contribution, is to be used by a center or program 
        receiving funds under this title.

    ``(b) Data Required.--The Secretary shall require an institution of 
higher education referred to in subsection (a) to report information 
listed in subsection (a) to the Secretary consistent with the 
requirements of section 117.''.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

SEC. 701. PURPOSE.

    Section 700(1)(B)(i) (20 U.S.C. 1133(1)(B)(i)) is amended by 
inserting ``, including those areas critical to United States national 
and homeland security needs, such as science, technology, engineering, 
and mathematics'' before the semicolon.
SEC. 702. JACOB K. JAVITS FELLOWSHIP PROGRAM.

    (a) Interruptions of Study.--Section 701(c) (20 U.S.C. 1134(c)) is 
amended by adding at the end the following new sentence: ``In the case 
of other exceptional circumstances, such as active duty military service 
or personal or family member illness, the institution of higher 
education may also permit the fellowship recipient to interrupt periods 
of study for the duration of the tour of duty (in the case of military 
service) or for not more than 12 months (in any other case), but without 
payment of the stipend.''.
    (b) Allocation of Fellowships.--Section 702(a)(1) (20 U.S.C. 
1134a(a)(1)) is amended to read as follows:
            ``(1) Appointment.--
                    ``(A) In general.--The Secretary shall appoint a 
                Jacob K. Javits Fellows Program Fellowship Board 
                (referred to in this subpart as the `Board') consisting 
                of 9 individuals representative of both public and 
                private institutions of higher education who are 
                especially qualified to serve on the Board.
                    ``(B) Qualifications.--In making appointments under 
                subparagraph (A), the Secretary shall--
                          ``(i) give due consideration to the 
                      appointment of individuals who are highly 
                      respected in the academic community;
                          ``(ii) appoint members who represent the 
                      various geographic regions of the United States;
                          ``(iii) ensure that individuals appointed to 
                      the Board are broadly representative of a range of 
                      disciplines in graduate education in arts, 
                      humanities, and social sciences; and

[[Page 122 STAT. 3346]]

                          ``(iv) ensure that such individuals include 
                      representatives from institutions that are 
                      eligible for one or more of the grants under title 
                      III or V.''.

    (c) Stipends.--
            (1) Section 703 (20 U.S.C. 1134b) is amended--
                    (A) in subsection (a)--
                          (i) by striking ``1999-2000'' and inserting 
                      ``2009-2010''; and
                          (ii) by striking ``Foundation graduate 
                      fellowships'' and inserting ``Foundation Graduate 
                      Research Fellowship Program for such academic 
                      year''; and
                    (B) in subsection (b), by striking paragraph (1)(A) 
                and inserting the following:
            ``(1) In general.--(A) <<NOTE: Payments.>> The Secretary 
        shall (in addition to stipends paid to individuals under this 
        subpart) pay to the institution of higher education, for each 
        individual awarded a fellowship under this subpart at such 
        institution, an institutional allowance. Except as provided in 
        subparagraph (B), such allowance shall be, for academic year 
        2009-2010 and succeeding academic years, the same amount as the 
        institutional payment made for academic year 2008-2009, adjusted 
        for academic year 2009-2010 and annually thereafter in 
        accordance with inflation as determined by the Department of 
        Labor's Consumer Price Index for the previous calendar year.''.

    (d) Authorization of Appropriations.--Section 705 (20 U.S.C. 1134d) 
is amended by striking ``fiscal year 1999'' and all that follows through 
the period at the end and inserting ``fiscal year 2009 and each of the 
five succeeding fiscal years to carry out this subpart.''.
SEC. 703. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

    (a) Institutional Eligibility.--Section 712 (20 U.S.C. 1135a) is 
amended by striking subsection (b) and inserting the following:
    ``(b) Designation of Areas of National Need.--After consultation 
with appropriate Federal and nonprofit agencies and organizations, 
including the National Science Foundation, the Department of Defense, 
the Department of Homeland Security, the National Academy of Sciences, 
and the Bureau of Labor Statistics, the Secretary shall designate areas 
of national need. In making such designations, the Secretary shall take 
into consideration--
            ``(1) the extent to which the interest in the area is 
        compelling;
            ``(2) the extent to which other Federal programs support 
        postbaccalaureate study in the area concerned;
            ``(3) an assessment of how the program may achieve the most 
        significant impact with available resources; and
            ``(4) an assessment of current (as of the time of the 
        designation) and future professional workforce needs of the 
        United States.''.

    (b) Awards to Graduate Students.--Section 714(b) (20 U.S.C. 
1135c(b)) is amended--
            (1) by striking ``1999-2000'' and inserting ``2009-2010''; 
        and
            (2) by striking ``Foundation graduate fellowships'' and 
        inserting ``Foundation Graduate Research Fellowship Program for 
        such academic year''.

    (c) Additional Assistance.--Section 715(a)(1) (20 U.S.C. 
1135d(a)(1)) is amended--

[[Page 122 STAT. 3347]]

            (1) by striking ``1999-2000'' and inserting ``2009-2010''; 
        and
            (2) by striking ``1998-1999'' and inserting ``2008-2009''.

    (d) Authorization of Appropriations.--Section 716 (20 U.S.C. 1135e) 
is amended by striking ``fiscal year 1999'' and all that follows through 
the period at the end and inserting ``fiscal year 2009 and each of the 
five succeeding fiscal years to carry out this subpart.''.
    (e) Technical Amendments.--Subpart 2 of part A of title VII (as 
amended by this section) (20 U.S.C. 113 et seq.) is further amended--
            (1) in section 711(a)(1) (20 U.S.C. 1135(a)(1)), by 
        inserting ``, including a master's or doctoral degree,'' after 
        ``leading to a graduate degree'';
            (2) in section 712(a) (20 U.S.C. 1135a(a)), by inserting ``, 
        including a master's or doctoral degree,'' after ``leading to a 
        graduate degree'';
            (3) in section 713(b)(5)(C) (20 U.S.C. 1135b(b)(5)(C)), by 
        inserting ``at the institution'' before the semicolon; and
            (4) in section 714(c) (20 U.S.C. 1135c(c))--
                    (A) by striking ``716(a)'' and inserting ``715(a)''; 
                and
                    (B) by striking ``714(b)(2)'' and inserting 
                ``713(b)(2)''.
SEC. 704. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

    (a) Program Authority.--
            (1) Section 721(a) (20 U.S.C. 1136(a)) is amended--
                    (A) by inserting ``secondary school and'' after 
                ``disadvantaged''; and
                    (B) by inserting ``and admission to law practice'' 
                before the period at the end.

    (b) Eligibility.--Section 721(b) (20 U.S.C. 1136(b)) is amended in 
the matter preceding paragraph (1), by inserting ``secondary school 
student or'' before ``college student''.
    (c)  Contract and Grant Purposes.--Section 721(c) (20 U.S.C. 
1136(c)) is amended--
            (1) in paragraph (1), by inserting ``secondary school and'' 
        before ``college students'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) to prepare such students for successful completion of 
        a baccalaureate degree and for study at accredited law schools, 
        and to assist them with the development of analytical skills, 
        writing skills, and study methods to enhance the students' 
        success in, and promote the students' admission to and 
        completion of, law school;'';
            (3) in paragraph (4), by striking ``and'' after the 
        semicolon; and
            (4) by striking paragraph (5) and inserting the following:
            ``(5) to motivate and prepare such students--
                    ``(A) with respect to law school studies and 
                practice in low-income communities; and
                    ``(B) to provide legal services to low-income 
                individuals and families; and
            ``(6) to award Thurgood Marshall Fellowships to eligible law 
        school students--
                    ``(A) who participated in summer institutes under 
                subsection (d)(6) and who are enrolled in an accredited 
                law school; or

[[Page 122 STAT. 3348]]

                    ``(B) who have successfully completed a comparable 
                summer institute program that is certified by the 
                Council on Legal Education Opportunity.''.

    (d) Services Provided.--Section 721(d) (20 U.S.C. 1136(d)) is 
amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``pre-college programs, undergraduate'' before ``pre-law'';
            (2) in paragraph (1)--
                    (A) in subparagraph (B), by inserting ``law school'' 
                before ``graduation''; and
                    (B) by striking subparagraph (D) and inserting the 
                following:
                    ``(D) pre-college and undergraduate preparatory 
                courses in analytical and writing skills, study methods, 
                and course selection;'';
            (3) by redesignating paragraphs (2) through (6) as 
        paragraphs (3) through (7), respectively;
            (4) by inserting after paragraph (1) the following:
            ``(2) summer academic programs for secondary school students 
        who have expressed interest in a career in the law;''; and
            (5) in paragraph (7) (as redesignated by paragraph (3)), by 
        inserting ``and Associates'' after ``Thurgood Marshall 
        Fellows''.

    (e) Duration.--Section 721(e)(1) (20 U.S.C. 1136(e)(1)) is amended 
by inserting ``, including before and during undergraduate study'' 
before the semicolon.
    (f) Subcontracts and Subgrants.--Section 721(f) (20 U.S.C. 1136(f)) 
is amended--
            (1) by inserting ``national and State bar associations,'' 
        after ``agencies and organizations,''; and
            (2) by striking ``and organizations.'' and inserting 
        ``organizations, and associations.''.

    (g) Stipends.--Section 721(g) (20 U.S.C. 1136(g)) is amended to read 
as follows:
    ``(g) Fellowships and Stipends.-- <<NOTE: Deadline.>> The Secretary 
shall annually establish the maximum fellowship to be awarded, and the 
maximum stipend to be paid (including allowances for participant travel 
and for the travel of the dependents of the participant), to Thurgood 
Marshall Fellows or Associates for the period of participation in summer 
institutes, midyear seminars, and bar preparation seminars. A Thurgood 
Marshall Fellow or Associate may be eligible for such a fellowship or 
stipend only if the Fellow or Associate maintains satisfactory academic 
progress toward the Juris Doctor or Bachelor of Laws degree, as 
determined by the respective institutions (except with respect to a law 
school graduate enrolled in a bar preparation course).''.

    (h) Authorization of Appropriations.--Section 721(h) (20 U.S.C. 
1136(h)) is amended by striking ``fiscal year 1999'' and all that 
follows through the period at the end and inserting ``fiscal year 2009 
and each of the five succeeding fiscal years.''.
    (i) Repeal of Continuation Awards.--Subsection (e) of section 731 
(20 U.S.C. 1137(e)) is repealed.
SEC. 705. SENSE OF CONGRESS.

    It is the sense of Congress that--

[[Page 122 STAT. 3349]]

            (1) addressing the under-representation of women and 
        minorities in the higher education professoriate will require 
        consistent inter-institutional cooperation, data gathering, 
        analysis, and self-evaluation; and
            (2) institutions eligible for funds under part A of title 
        VII of the Higher Education Act of 1965 (20 U.S.C. 1134 et seq.) 
        should be encouraged to consider the feasibility and potential 
        design of an inter-institution monitoring organization 
        addressing under-representation by race, ethnicity, and gender 
        in postsecondary faculty and administrators.
SEC. 706. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK COLLEGES 
                        AND UNIVERSITIES AND PREDOMINANTLY BLACK 
                        INSTITUTIONS.

    (a) Technical Amendments.--Part A of title VII (as amended by this 
title) (20 U.S.C. 1134 et seq.) is further amended--
            (1) by redesignating subpart 4 as subpart 5;
            (2) in the heading of section 731, <<NOTE: 20 USC 1137.>> by 
        striking ``subparts 1, 2, and 3'' and inserting ``subparts 1 
        through 4''; and
            (3) in section 731--
                    (A) in subsections (a) and (b), by striking 
                ``subparts 1, 2, and 3'' each place the term appears and 
                inserting ``subparts 1 through 4''; and
                    (B) in subsection (d), by striking ``subpart 1, 2, 
                or 3'' and inserting ``subpart 1, 2, 3, or 4''.

    (b) Master's Degree Programs.--Part A of title VII (as amended by 
this title) (20 U.S.C. 1134 et seq.) is further amended by inserting 
after subpart 3 the following:

``Subpart 4--Masters Degree Programs at Historically Black Colleges and 
            Universities and Predominantly Black Institutions

``SEC. 723. <<NOTE: 20 USC 1136a.>> MASTERS DEGREE PROGRAMS AT 
                        HISTORICALLY BLACK COLLEGES AND 
                        UNIVERSITIES.

    ``(a) Grant Program Authorized.--
            ``(1) In general.--Subject to the availability of funds 
        appropriated to carry out this section, the Secretary shall 
        award program grants to each of the institutions listed in 
        subsection (b)(1) that is determined by the Secretary to be 
        making a substantial contribution to graduate education 
        opportunities at the masters level in mathematics, engineering, 
        the physical or natural sciences, computer science, information 
        technology, nursing, allied health, or other scientific 
        disciplines for Black Americans.
            ``(2) Assurance of non-federal matching funds.--No grant in 
        excess of $1,000,000 may be made under this section unless the 
        institution provides assurances that 50 percent of the cost of 
        the purposes for which the grant is made will be paid from non-
        Federal sources, except that no institution shall be required to 
        match any portion of the first $1,000,000 of the institution's 
        award from the Secretary. After funds are made available to each 
        eligible institution under the funding rules described in 
        subsection (f), the Secretary shall distribute, on a pro rata 
        basis, any amounts which were not so made available (by reason 
        of the failure of an institution to comply

[[Page 122 STAT. 3350]]

        with the matching requirements of this paragraph) among the 
        institutions that have complied with such matching requirement.
            ``(3) Minimum award.--Subject to subsections (f) and (g), 
        the amount awarded to each eligible institution listed in 
        subsection (b)(1) for a fiscal year shall be not less than 
        $500,000.
            ``(4) Duration of grants.--A grant awarded under this 
        section shall be for a period of not more than six years, but 
        may be periodically renewed for a period to be determined by the 
        Secretary.

    ``(b) Institutional Eligibility.--
            ``(1) In general.--Institutions eligible for grants under 
        subsection (a) are the following:
                    ``(A) Albany State University.
                    ``(B) Alcorn State University.
                    ``(C) Claflin University.
                    ``(D) Coppin State University.
                    ``(E) Elizabeth City State University.
                    ``(F) Fayetteville State University.
                    ``(G) Fisk University.
                    ``(H) Fort Valley State University.
                    ``(I) Grambling State University.
                    ``(J) Kentucky State University.
                    ``(K) Mississippi Valley State University.
                    ``(L) Savannah State University.
                    ``(M) South Carolina State University.
                    ``(N) University of Arkansas, Pine Bluff.
                    ``(O) Virginia State University.
                    ``(P) West Virginia Sate University.
                    ``(Q) Wilberforce University.
                    ``(R) Winston-Salem State University.
            ``(2) Qualified masters degree program.--
                    ``(A) In general.--For the purposes of this section, 
                the term `qualified masters degree program' means a 
                masters degree program that provides a program of 
                instruction in mathematics, engineering, the physical or 
                natural sciences, computer science, information 
                technology, nursing, allied health, or other scientific 
                disciplines in which African Americans are 
                underrepresented and has students enrolled in such 
                program of instruction at the time of application for a 
                grant under this section.
                    ``(B) Enrollment exception.--Notwithstanding the 
                enrollment requirement contained in subparagraph (A), an 
                institution may use an amount equal to not more than 10 
                percent of the institution's grant under this section 
                for the development of a new qualified masters degree 
                program.
            ``(3) Institutional choice.--The president or chancellor of 
        the institution may decide which graduate school or qualified 
        masters degree program will receive funds under the grant in any 
        one fiscal year, if the allocation of funds among the schools or 
        programs is delineated in the application for funds submitted to 
        the Secretary under this section.
            ``(4) One grant per institution.--The Secretary shall not 
        award more than one grant under this section in any fiscal year 
        to any institution of higher education.

[[Page 122 STAT. 3351]]

    ``(c) Application.--An eligible institution listed in subsection 
(b)(1) desiring a grant under this section shall submit an application 
at such time, in such manner, and containing such information as the 
Secretary may require. The application shall--
            ``(1) demonstrate how the grant funds under this section 
        will be used to improve graduate educational opportunities for 
        Black and low-income students, and lead to greater financial 
        independence; and
            ``(2) provide, in the case of applications for grants in 
        excess of $1,000,000, the assurances required under subsection 
        (a)(2) and specify the manner in which the eligible institution 
        is going to pay the non-Federal share of the cost of the 
        application.

    ``(d) Uses of Funds.--A grant under this section may be used for--
            ``(1) purchase, rental, or lease of scientific or laboratory 
        equipment for educational purposes, including instructional and