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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-803
_______________________________________________________________________

                                     


                    HIGHER EDUCATION OPPORTUNITY ACT

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 4137




                 July 30, 2008.--Ordered to be printed
110th Congress 
 2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                110-803
_______________________________________________________________________

                                     


                    HIGHER EDUCATION OPPORTUNITY ACT

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 4137




                 July 30, 2008.--Ordered to be printed
                    HIGHER EDUCATION OPPORTUNITY ACT


110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-803

======================================================================



,
                    HIGHER EDUCATION OPPORTUNITY ACT

                                _______
                                

                 July 30, 2008.--Ordered to be printed

                                _______
                                

  Mr. George Miller of California, from the committee of conference, 
                        submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 4137]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
4137), to amend and extend the Higher Education Act of 1965, 
and for other purposes, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) 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.
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.
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.
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.
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 be considered to be made to a section or other 
provision of the Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.).

SEC. 3. GENERAL EFFECTIVE DATE.

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

                      TITLE I--GENERAL PROVISIONS

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) 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
                    (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 
                                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) 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--
                    (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) 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) 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 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
                    ``(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)--
                    (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'';
            (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:

``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 vacancy on the Committee shall be 
        filled in the same manner as the original appointment 
        was made not later than 90 days after the vacancy 
        occurs. If a vacancy occurs in a position to be filled 
        by the Secretary, the Secretary shall publish a Federal 
        Register notice soliciting nominations for the position 
        not later than 30 days after being notified of the 
        vacancy.
            ``(5) Initial terms.--The terms of office for the 
        initial members of the Committee shall be--
                    ``(A) three years for members appointed 
                under paragraph (1)(A);
                    ``(B) four years for members appointed 
                under paragraph (1)(B); and
                    ``(C) six years for members appointed under 
                paragraph (1)(C).
            ``(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 Committee 
                shall submit the date and location of each 
                meeting in advance to the Secretary, and the 
                Secretary shall publish such information in the 
                Federal Register not later than 30 days before 
                the meeting.
            ``(2) Agenda.--
                    ``(A) Establishment.--The agenda for a 
                meeting of the Committee shall be established 
                by the Chairperson and shall be submitted to 
                the members of the Committee upon notification 
                of the meeting.
                    ``(B) Opportunity for public comment.--The 
                agenda shall include, at a minimum, opportunity 
                for public comment during the Committee's 
                deliberations.
            ``(3) Secretary's designee.--The Secretary shall 
        designate an employee of the Department to serve as the 
        Secretary's designee to the Committee, and the 
        Chairperson shall invite the Secretary's designee to 
        attend all meetings of the Committee.
            ``(4) Federal advisory committee act.--The Federal 
        Advisory Committee Act (5 U.S.C. App.) shall apply to 
        the Committee, except that section 14 of such Act shall 
        not apply.
    ``(e) Report and Notice.--
            ``(1) Notice.--The Secretary shall annually publish 
        in the Federal Register--
                    ``(A) a list containing, for each member of 
                the Committee--
                            ``(i) the member's name;
                            ``(ii) the date of the expiration 
                        of the member's term of office; and
                            ``(iii) the name of the individual 
                        described in subsection (b)(1) who 
                        appointed the member; and
                    ``(B) a solicitation of nominations for 
                each expiring term of office on the Committee 
                of a member appointed by the Secretary.
            ``(2) Report.--Not later than the last day of each 
        fiscal year, the Committee shall make available an 
        annual report to the Secretary, the authorizing 
        committees, and the public. The annual report shall 
        contain--
                    ``(A) a detailed summary of the agenda and 
                activities of, and the findings and 
                recommendations made by, the Committee during 
                the fiscal year preceding the fiscal year in 
                which the report is made;
                    ``(B) a list of the date and location of 
                each meeting during the fiscal year preceding 
                the fiscal year in which the report is made;
                    ``(C) a list of the members of the 
                Committee; and
                    ``(D) a list of the functions of the 
                Committee, including any additional functions 
                established by the Secretary through 
                regulation.
    ``(f) Termination.--The Committee shall terminate on 
September 30, 2014.''.
    (b) 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) 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 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. DIPLOMA MILLS.

    ``(a) Information to the Public.--The Secretary shall 
maintain information and resources on the Department's website 
to assist students, families, and employers in understanding 
what a diploma mill is and how to identify and avoid diploma 
mills.
    ``(b) Collaboration.--The Secretary shall continue to 
collaborate with the United States Postal Service, the Federal 
Trade Commission, the Department of Justice (including the 
Federal Bureau of Investigation), the Internal Revenue Service, 
and the Office of Personnel Management to maximize Federal 
efforts to--
            ``(1) prevent, identify, and prosecute diploma 
        mills; and
            ``(2) broadly disseminate to the public information 
        about diploma mills, and resources to identify diploma 
        mills.''.

SEC. 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.
            ``(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) Improved Availability and Coordination of Information 
Concerning Student Financial Aid Programs for Military Members 
and Veterans.--
            ``(1) Coordination.--The Secretary, in coordination 
        with the Secretary of Defense and the Secretary of 
        Veterans Affairs, shall create a searchable website 
        that--
                    ``(A) contains information, in simple and 
                understandable terms, about all Federal and 
                State student financial assistance, readmission 
                requirements under section 484C, and other 
                student services, for which members of the 
                Armed Forces (including members of the National 
                Guard and Reserves), veterans, and the 
                dependents of such members or veterans may be 
                eligible; and
                    ``(B) is easily accessible through the 
                website described in subsection (e)(3).
            ``(2) Implementation.--Not later than one year 
        after the date of enactment of the Higher Education 
        Opportunity Act, the Secretary shall make publicly 
        available the Armed Forces information website 
        described in paragraph (1).
            ``(3) Dissemination.--The Secretary, in 
        coordination with the Secretary of Defense and the 
        Secretary of Veterans Affairs, shall make the 
        availability of the Armed Forces information website 
        described in paragraph (1) widely known to members of 
        the Armed Forces (including members of the National 
        Guard and Reserves), veterans, the dependents of such 
        members or veterans, States, institutions of higher 
        education, and the general public.
            ``(4) Definition.--In this subsection, the term 
        `Federal and State student financial assistance' means 
        any grant, loan, work assistance, tuition assistance, 
        scholarship, fellowship, or other form of financial aid 
        for pursuing a postsecondary education that is--
                    ``(A) administered, sponsored, or supported 
                by the Department of Education, the Department 
                of Defense, the Department of Veterans Affairs, 
                or a State; and
                    ``(B) available to members of the Armed 
                Forces (including members of the National Guard 
                and Reserves), veterans, or the dependents of 
                such members or veterans.
    ``(g) Promotion of Availability of Information Concerning 
Other Student Financial Aid Programs.--
            ``(1) Definition.--For purposes of this subsection, 
        the term `nondepartmental student financial assistance 
        program' means any grant, loan, scholarship, 
        fellowship, or other form of financial aid for students 
        pursuing a postsecondary education that is--
                    ``(A) distributed directly to the student 
                or to the student's account at an institution 
                of higher education; and
                    ``(B) operated, sponsored, or supported by 
                a Federal department or agency other than the 
                Department of Education.
            ``(2) Availability of other student financial aid 
        information.--The Secretary shall ensure that--
                    ``(A) not later than 90 days after the 
                Secretary receives the information required 
                under paragraph (3), the eligibility 
                requirements, application procedures, financial 
                terms and conditions, and other relevant 
                information for each nondepartmental student 
                financial assistance program are searchable and 
                accessible through the Federal student 
                financial aid website in a manner that is 
                simple and understandable for students and the 
                students' families; and
                    ``(B) the website displaying the 
                information described in subparagraph (A) 
                includes a link to the National Database on 
                Financial Assistance for the Study of Science, 
                Technology, Engineering, and Mathematics 
                pursuant to paragraph (4), and the information 
                on military benefits under subsection (f), once 
                such Database and information are available.
            ``(3) Nondepartmental student financial assistance 
        programs.--The Secretary shall request all Federal 
        departments and agencies to provide the information 
        described in paragraph (2)(A), and each Federal 
        department or agency shall--
                    ``(A) promptly respond to surveys or other 
                requests from the Secretary for the information 
                described in such paragraph; and
                    ``(B) identify for the Secretary any 
                nondepartmental student financial assistance 
                program operated, sponsored, or supported by 
                such Federal department or agency.
            ``(4) National STEM database.--
                    ``(A) In general.--The Secretary shall 
                establish and maintain, on the website 
                described in subsection (e)(3), a National 
                Database on Financial Assistance for the Study 
                of Science, Technology, Engineering, and 
                Mathematics (in this paragraph referred to as 
                the `STEM Database'). The STEM Database shall 
                consist of information on scholarships, 
                fellowships, and other programs of Federal, 
                State, local, and, to the maximum extent 
                practicable, private financial assistance 
                available for the study of science, technology, 
                engineering, or mathematics at the 
                postsecondary and postbaccalaureate levels.
                    ``(B) Database contents.--The information 
                maintained on the STEM Database shall be 
                displayed on the website in the following 
                manner:
                            ``(i) Separate information.--The 
                        STEM Database shall provide separate 
                        information for each of the fields of 
                        science, technology, engineering, and 
                        mathematics, and for postsecondary and 
                        postbaccalaureate programs of financial 
                        assistance.
                            ``(ii) Information on targeted 
                        assistance.--The STEM Database shall 
                        provide specific information on any 
                        program of financial assistance that is 
                        targeted to individuals based on 
                        financial need, merit, or student 
                        characteristics.
                            ``(iii) Contact and website 
                        information.--The STEM Database shall 
                        provide--
                                    ``(I) standard contact 
                                information that an interested 
                                person may use to contact a 
                                sponsor of any program of 
                                financial assistance included 
                                in the STEM Database; and
                                    ``(II) if such sponsor 
                                maintains a public website, a 
                                link to the website.
                            ``(iv) Search and match 
                        capabilities.--The STEM Database 
                        shall--
                                    ``(I) have a search 
                                capability that permits an 
                                individual to search for 
                                information on the basis of 
                                each category of the 
                                information provided through 
                                the STEM Database and on the 
                                basis of combinations of 
                                categories of the information 
                                provided, including--
                                            ``(aa) whether the 
                                        financial assistance is 
                                        need- or merit-based; 
                                        and
                                            ``(bb) by relevant 
                                        academic majors; and
                                    ``(II) have a match 
                                capability that--
                                            ``(aa) searches the 
                                        STEM Database for all 
                                        financial assistance 
                                        opportunities for which 
                                        an individual may be 
                                        qualified to apply, 
                                        based on the student 
                                        characteristics 
                                        provided by such 
                                        individual; and
                                            ``(bb) provides 
                                        information to an 
                                        individual for only 
                                        those opportunities for 
                                        which such individual 
                                        is qualified, based on 
                                        the student 
                                        characteristics 
                                        provided by such 
                                        individual.
                            ``(v) Recommendation and 
                        disclaimer.--The STEM Database shall 
                        provide, to the users of the STEM 
                        Database--
                                    ``(I) a recommendation that 
                                students and families should 
                                carefully review all of the 
                                application requirements prior 
                                to applying for any aid or 
                                program of student financial 
                                assistance; and
                                    ``(II) a disclaimer that 
                                the non-Federal programs of 
                                student financial assistance 
                                presented in the STEM Database 
                                are not provided or endorsed by 
                                the Department or the Federal 
                                Government.
                    ``(C) Compilation of financial assistance 
                information.--In carrying out this paragraph, 
                the Secretary shall--
                            ``(i) consult with public and 
                        private sources of scholarships, 
                        fellowships, and other programs of 
                        student financial assistance; and
                            ``(ii) make easily available a 
                        process for such entities to provide 
                        regular and updated information about 
                        the scholarships, fellowships, or other 
                        programs of student financial 
                        assistance.
                    ``(D) Contract authorized.--In carrying out 
                the requirements of this paragraph, the 
                Secretary is authorized to enter into a 
                contract with a private entity with 
                demonstrated expertise in creating and 
                maintaining databases such as the one required 
                under this paragraph, under which contract the 
                entity shall furnish, and regularly update, all 
                of the information required to be maintained on 
                the STEM Database.
            ``(5) Dissemination of information.--The Secretary 
        shall take such actions, on an ongoing basis, as may be 
        necessary to disseminate information under this 
        subsection and to encourage the use of the information 
        by interested parties, including sending notices to 
        secondary schools and institutions of higher 
        education.''.
    (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. 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 of higher education, the Secretary shall calculate 
the cost of attendance, net price, and tuition and fees at such 
institution in the manner described in subsection (a), except 
that--
            ``(1) the cost of attendance, net price, and 
        tuition and fees shall be calculated for first-time, 
        full-time undergraduate students enrolled in the 
        institution who are residents of the State in which 
        such institution is located; and
            ``(2) in determining the net price, the average 
        need-based grant aid and merit-based grant aid 
        described in subsection (a)(3)(B) shall be calculated 
        based on the average total amount of such aid received 
        by first-time, full-time undergraduate students who are 
        residents of the State in which such institution is 
        located, divided by the total number of such resident 
        students receiving such need-based grant aid or merit-
        based grant aid at such institution.
    ``(c) College Affordability and Transparency Lists.--
            ``(1) Availability of lists.--Beginning July 1, 
        2011, the Secretary shall make publicly available on 
        the College Navigator website, in a manner that is 
        sortable and searchable by State, the following:
                    ``(A) A list of the five percent of 
                institutions in each category described in 
                subsection (d) that have the highest tuition 
                and fees for the most recent academic year for 
                which data are available.
                    ``(B) A list of the five percent of 
                institutions in each such category that have 
                the highest net price for the most recent 
                academic year for which data are available.
                    ``(C) A list of the five percent of 
                institutions in each such category that have 
                the largest increase, expressed as a percentage 
                change, in tuition and fees over the most 
                recent three academic years for which data are 
                available, using the first academic year of the 
                three-year period as the base year to compute 
                such percentage change.
                    ``(D) A list of the five percent of 
                institutions in each such category that have 
                the largest increase, expressed as a percentage 
                change, in net price over the most recent three 
                academic years for which data are available, 
                using the first academic year of the three-year 
                period as the base year to compute such 
                percentage change.
                    ``(E) A list of the ten percent of 
                institutions in each such category that have 
                the lowest tuition and fees for the most recent 
                academic year for which data are available.
                    ``(F) A list of the ten percent of 
                institutions in each such category that have 
                the lowest net price for the most recent 
                academic year for which data are available.
            ``(2) Annual updates.--The Secretary shall annually 
        update the lists described in paragraph (1) on the 
        College Navigator website.
    ``(d) Categories of Institutions.--The lists described in 
subsection (c)(1) shall be compiled according to the following 
categories of institutions that participate in programs under 
title IV:
            ``(1) Four-year public institutions of higher 
        education.
            ``(2) Four-year private, nonprofit institutions of 
        higher education.
            ``(3) Four-year private, for-profit institutions of 
        higher education.
            ``(4) Two-year public institutions of higher 
        education.
            ``(5) Two-year private, nonprofit institutions of 
        higher education.
            ``(6) Two-year private, for-profit institutions of 
        higher education.
            ``(7) Less than two-year public institutions of 
        higher education.
            ``(8) Less than two-year private, nonprofit 
        institutions of higher education.
            ``(9) Less than two-year private, for-profit 
        institutions of higher education.
    ``(e) Reports by Institutions.--
            ``(1) Report to secretary.--If an institution of 
        higher education is included on a list described in 
        subparagraph (C) or (D) of subsection (c)(1), the 
        institution shall submit to the Secretary a report 
        containing the following information:
                    ``(A) A description of the major areas in 
                the institution's budget with the greatest cost 
                increases.
                    ``(B) An explanation of the cost increases 
                described in subparagraph (A).
                    ``(C) A description of the steps the 
                institution will take toward the goal of 
                reducing costs in the areas described in 
                subparagraph (A).
                    ``(D) In the case of an institution that is 
                included on the same list under subparagraph 
                (C) or (D) of subsection (c)(1) for two or more 
                consecutive years, a description of the 
                progress made on the steps described in 
                subparagraph (C) of this paragraph that were 
                included in the institution's report for the 
                previous year.
                    ``(E) If the determination of any cost 
                increase described in subparagraph (A) is not 
                within the exclusive control of the 
                institution--
                            ``(i) an explanation of the extent 
                        to which the institution participates 
                        in determining such cost increase;
                            ``(ii) the identification of the 
                        agency or instrumentality of State 
                        government responsible for determining 
                        such cost increase; and
                            ``(iii) any other information the 
                        institution considers relevant to the 
                        report.
            ``(2) Information to the public.--The Secretary 
        shall--
                    ``(A) issue an annual report that 
                summarizes all of the reports by institutions 
                required under paragraph (1) to the authorizing 
                committees; and
                    ``(B) publish such report on the College 
                Navigator website.
    ``(f) Exemptions.--
            ``(1) In general.--An institution shall not be 
        placed on a list described in subparagraph (C) or (D) 
        of subsection (c)(1), and shall not be subject to the 
        reporting required under subsection (e), if the dollar 
        amount of the institution's increase in tuition and 
        fees, or net price, as applicable, is less than $600 
        for the three-year period described in such 
        subparagraph.
            ``(2) Update.--Beginning in 2014, and every three 
        years thereafter, the Secretary shall update the dollar 
        amount described in paragraph (1) based on annual 
        increases in inflation, using the Consumer Price Index 
        for each of the three most recent preceding years.
    ``(g) State Higher Education Spending Chart.--The Secretary 
shall annually report on the College Navigator website, in 
charts for each State, comparisons of--
            ``(1) the percentage change in spending by such 
        State per full-time equivalent student at all public 
        institutions of higher education in such State, for 
        each of the five most recent preceding academic years;
            ``(2) the percentage change in tuition and fees for 
        such students for all public institutions of higher 
        education in such State for each of the five most 
        recent preceding academic years; and
            ``(3) the percentage change in the total amount of 
        need-based aid and merit-based aid provided by such 
        State to full-time students enrolled in the public 
        institutions of higher education in the State for each 
        of the five most recent preceding academic years.
    ``(h) Net Price Calculator.--
            ``(1) Development of net price 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 
        and other appropriate experts, develop a net price 
        calculator to help current and prospective students, 
        families, and other consumers estimate the individual 
        net price of an institution of higher education for a 
        student. The calculator shall be developed in a manner 
        that enables current and prospective students, 
        families, and consumers to determine an estimate of a 
        current or prospective student's individual net price 
        at a particular institution.
            ``(2) Calculation of individual net price.--For 
        purposes of this subsection, an individual net price of 
        an institution of higher education shall be calculated 
        in the same manner as the net price of such institution 
        is calculated under subsection (a)(3), except that the 
        cost of attendance and the amount of need-based and 
        merit-based aid available shall be calculated for the 
        individual student as much as practicable.
            ``(3) Use of net price calculator by 
        institutions.--Not later than two years after the date 
        on which the Secretary makes the calculator developed 
        under paragraph (1) available to institutions of higher 
        education, each institution of higher education that 
        receives Federal funds under title IV shall make 
        publicly available on the institution's website a net 
        price calculator to help current and prospective 
        students, families, and other consumers estimate a 
        student's individual net price at such institution of 
        higher education. Such calculator may be a net price 
        calculator developed--
                    ``(A) by the Department pursuant to 
                paragraph (1); or
                    ``(B) by the institution of higher 
                education, if the institution's calculator 
                includes, at a minimum, the same data elements 
                included in the calculator developed under 
                paragraph (1).
            ``(4) Disclaimer.--Estimates of an individual net 
        price determined using a net price calculator required 
        under paragraph (3) shall be accompanied by a clear and 
        conspicuous notice--
                    ``(A) stating that the estimate--
                            ``(i) does not represent a final 
                        determination, or actual award, of 
                        financial assistance;
                            ``(ii) shall not be binding on the 
                        Secretary, the institution of higher 
                        education, or the State; and
                            ``(iii) may change;
                    ``(B) stating that the student must 
                complete the Free Application for Federal 
                Student Aid described in section 483 in order 
                to be eligible for, and receive, an actual 
                financial aid award that includes Federal 
                grant, loan, or work-study assistance under 
                title IV; and
                    ``(C) including a link to the website of 
                the Department that allows students to access 
                the Free Application for Federal Student Aid 
                described in section 483.
    ``(i) Consumer Information.--
            ``(1) Availability of title iv institution 
        information.--Not later than one year after the date of 
        enactment of 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'.
                    ``(J) The percentages of first-time, full-
                time, degree- or certificate-seeking 
                undergraduate students enrolled at the 
                institution who obtain a degree or certificate 
                within--
                            ``(i) the normal time for 
                        completion of, or graduation from, the 
                        student's program;
                            ``(ii) 150 percent of the normal 
                        time for completion of, or graduation 
                        from, the student's program; and
                            ``(iii) 200 percent of the normal 
                        time for completion of, or graduation 
                        from, the student's program;
                    ``(K) The number of certificates, associate 
                degrees, baccalaureate degrees, master's 
                degrees, professional degrees, and doctoral 
                degrees awarded by the institution.
                    ``(L) The undergraduate major areas of 
                study at the institution with the highest 
                number of degrees awarded.
                    ``(M) The student-faculty ratio, the number 
                of full-time and part-time faculty, and the 
                number of graduate assistants with primarily 
                instructional responsibilities, at the 
                institution.
                    ``(N)(i) The cost of attendance for first-
                time, full-time undergraduate students enrolled 
                in the institution who live on campus;
                    ``(ii) the cost of attendance for first-
                time, full-time undergraduate students enrolled 
                in the institution who live off campus; and
                    ``(iii) in the case of a public institution 
                of higher education and notwithstanding 
                subsection (b)(1), the costs described in 
                clauses (i) and (ii), for--
                            ``(I) first-time, full-time 
                        students enrolled in the institution 
                        who are residents of the State in which 
                        the institution is located; and
                            ``(II) first-time, full-time 
                        students enrolled in the institution 
                        who are not residents of such State.
                    ``(O) The average annual grant amount 
                (including Federal, State, and institutional 
                aid) awarded to a first-time, full-time 
                undergraduate student enrolled at the 
                institution who receives financial aid.
                    ``(P) The average annual amount of Federal 
                student loans provided through the institution 
                to undergraduate students enrolled at the 
                institution.
                    ``(Q) The total annual grant aid awarded to 
                undergraduate students enrolled at the 
                institution, from the Federal Government, a 
                State, the institution, and other sources known 
                by the institution.
                    ``(R) The percentage of first-time, full-
                time undergraduate students enrolled at the 
                institution receiving Federal, State, and 
                institutional grants, student loans, and any 
                other type of student financial assistance 
                known by the institution, provided publicly or 
                through the institution, such as Federal work-
                study funds.
                    ``(S) The number of students enrolled at 
                the institution receiving Federal Pell Grants.
                    ``(T) The institution's cohort default 
                rate, as defined under section 435(m).
                    ``(U) The information on campus safety 
                required to be collected under section 485(i).
                    ``(V) A link to the institution's website 
                that provides, in an easily accessible manner, 
                the following information:
                            ``(i) Student activities offered by 
                        the institution.
                            ``(ii) Services offered by the 
                        institution for individuals with 
                        disabilities.
                            ``(iii) Career and placement 
                        services offered by the institution to 
                        students during and after enrollment.
                            ``(iv) Policies of the institution 
                        related to transfer of credit from 
                        other institutions.
                    ``(W) A link to the appropriate section of 
                the Bureau of Labor Statistics website that 
                provides information on regional data on 
                starting salaries in all major occupations.
                    ``(X) Information required to be submitted 
                under paragraph (4) and a link to the 
                institution pricing summary page described in 
                paragraph (5).
                    ``(Y) In the case of an institution that 
                was required to submit a report under 
                subsection (e)(1), a link to such report.
                    ``(Z) The availability of alternative 
                tuition plans, which may include guaranteed 
                tuition plans.
            ``(2) Annual updates.--The Secretary shall annually 
        update the information described in paragraph (1) on 
        the College Navigator website.
            ``(3) Consultation.--The Secretary shall regularly 
        consult with current and prospective college students, 
        family members of such students, institutions of higher 
        education, and other experts to improve the usefulness 
        and relevance of the College Navigator website, with 
        respect to the presentation of the consumer information 
        collected in paragraph (1).
            ``(4) Data collection.--The Commissioner for 
        Education Statistics shall continue to update and 
        improve the Integrated Postsecondary Education Data 
        System (referred to in this section as `IPEDS'), 
        including the reporting of information by institutions 
        and the timeliness of the data collected.
            ``(5) Institution pricing summary page.--
                    ``(A) Availability of list of participating 
                institutions.--The Secretary shall make 
                publicly available on the College Navigator 
                website in a sortable and searchable format a 
                list of all institutions of higher education 
                that participate in programs under title IV, 
                which list shall, for each institution, include 
                the following:
                            ``(i) The tuition and fees for each 
                        of the three most recent academic years 
                        for which data are available.
                            ``(ii) The net price for each of 
                        the three most recent available 
                        academic years for which data are 
                        available.
                            ``(iii)(I) During the period 
                        beginning July 1, 2010, and ending June 
                        30, 2013, the net price for students 
                        receiving Federal student financial aid 
                        under title IV, disaggregated by the 
                        income categories described in 
                        paragraph (6), for the most recent 
                        academic year for which data are 
                        available.
                            ``(II) Beginning July 1, 2013, the 
                        net price for students receiving 
                        Federal student financial aid under 
                        title IV, disaggregated by the income 
                        categories described in paragraph (6), 
                        for each of the three most recent 
                        academic years for which data are 
                        available.
                            ``(iv) The average annual 
                        percentage change and average annual 
                        dollar change in such institution's 
                        tuition and fees for each of the three 
                        most recent academic years for which 
                        data are available.
                            ``(v) The average annual percentage 
                        change and average annual dollar change 
                        in such institution's net price for 
                        each of the three most recent preceding 
                        academic years for which data are 
                        available.
                            ``(vi) A link to the webpage on the 
                        College Navigator website that provides 
                        the information described in paragraph 
                        (1) for the institution.
                    ``(B) Annual updates.--The Secretary shall 
                annually update the lists described in 
                subparagraph (A) on the College Navigator 
                website.
            ``(6) Income categories.--
                    ``(A) In general.--For purposes of 
                reporting the information required under this 
                subsection, the following income categories 
                shall apply for students who receive Federal 
                student financial aid under title IV:
                            ``(i) $0-30,000.
                            ``(ii) $30,001-48,000.
                            ``(iii) $48,001-75,000.
                            ``(iv) $75,001-110,000.
                            ``(v) $110,001 and more.
                    ``(B) Adjustment.--The Secretary may adjust 
                the income categories listed in subparagraph 
                (A) using the Consumer Price Index if the 
                Secretary determines such adjustment is 
                necessary.
    ``(j) Multi-Year Tuition Calculator.--
            ``(1) 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, based on 
                the normal duration of such program, using the 
                estimate calculated under subparagraph (B) for 
                each year of the program of study;
                    ``(D) provide the individual with the 
                option to replace the estimated annual 
                percentage change described in subparagraph 
                (B)(ii) with an alternative annual percentage 
                change specified by the individual, and 
                calculate an estimate of tuition and fees for 
                each year and an estimate of the total amount 
                of tuition and fees using the alternative 
                percentage change;
                    ``(E) in the case of an institution that 
                offers a multi-year tuition guarantee program, 
                allow the individual to have the estimates of 
                tuition and fees described in subparagraphs (B) 
                and (C) calculated based on the provisions of 
                such guarantee program for the tuition and fees 
                charged to a student, or cohort of students, 
                enrolled for the duration of the program of 
                study; and
                    ``(F) include any other features or 
                information determined to be appropriate by the 
                Secretary.
            ``(3) Availability and comparison.--The multi-year 
        tuition calculator described in paragraph (1) shall be 
        available on the College Navigator website and shall 
        allow current and prospective students, families of 
        such students, and consumers to compare information and 
        estimates under this subsection for multiple 
        institutions of higher education.
            ``(4) Disclaimer.--Each calculation of estimated 
        tuition and fees made using the multi-year tuition 
        calculator described in paragraph (1) shall be 
        accompanied by a clear and conspicuous notice--
                    ``(A) stating that the calculation--
                            ``(i) is only an estimate and not a 
                        guarantee of the actual amount the 
                        student may be charged;
                            ``(ii) is not binding on the 
                        Secretary, the institution of higher 
                        education, or the State; and
                            ``(iii) may change, subject to the 
                        availability of financial assistance, 
                        State appropriations, and other 
                        factors;
                    ``(B) stating that the student must 
                complete the Free Application for Federal 
                Student Aid described in section 483 in order 
                to be eligible for, and receive, an actual 
                financial aid award that includes Federal 
                grant, loan, or work-study assistance under 
                title IV; and
                    ``(C) including a link to the website of 
                the Department that allows students to access 
                the Free Application for Federal Student Aid 
                described in section 483.
    ``(k) Student Aid Recipient Survey.--
            ``(1) Survey required.--The Secretary, acting 
        through the Commissioner for Education Statistics, 
        shall conduct, on a State-by-State basis, a survey of 
        recipients of Federal student financial aid under title 
        IV--
                    ``(A) to identify the population of 
                students receiving such Federal student 
                financial aid;
                    ``(B) to describe the income distribution 
                and other socioeconomic characteristics of 
                recipients of such Federal student financial 
                aid;
                    ``(C) to describe the combinations of aid 
                from Federal, State, and private sources 
                received by such recipients from all income 
                categories;
                    ``(D) to describe the--
                            ``(i) debt burden of such loan 
                        recipients, and their capacity to repay 
                        their education debts; and
                            ``(ii) the impact of such debt 
                        burden on the recipients' course of 
                        study and post-graduation plans;
                    ``(E) to describe the impact of the cost of 
                attendance of postsecondary education in the 
                determination by students of what institution 
                of higher education to attend; and
                    ``(F) to describe how the costs of 
                textbooks and other instructional materials 
                affect the costs of postsecondary education for 
                students.
            ``(2) Frequency.--The survey shall be conducted on 
        a regular cycle and not less often than once every four 
        years.
            ``(3) Survey design.--The survey shall be 
        representative of students from all types of 
        institutions, including full-time and part-time 
        students, undergraduate, graduate, and professional 
        students, and current and former students.
            ``(4) Dissemination.--The Commissioner for 
        Education Statistics shall disseminate to the public, 
        in printed and electronic form, the information 
        resulting from the survey.
    ``(l) Regulations.--The Secretary is authorized to issue 
such regulations as may be necessary to carry out this 
section.''.

SEC. 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. TEXTBOOK INFORMATION.

    ``(a) Purpose and Intent.--The purpose of this section is 
to ensure that students have access to affordable course 
materials by decreasing costs to students and enhancing 
transparency and disclosure with respect to the selection, 
purchase, sale, and use of course materials. It is the intent 
of this section to encourage all of the involved parties, 
including faculty, students, administrators, institutions of 
higher education, bookstores, distributors, and publishers, to 
work together to identify ways to decrease the cost of college 
textbooks and supplemental materials for students while 
supporting the academic freedom of faculty members to select 
high quality course materials for students.
    ``(b) Definitions.--In this section:
            ``(1) Bundle.--The term `bundle' means one or more 
        college textbooks or other supplemental materials that 
        may be packaged together to be sold as course materials 
        for one price.
            ``(2) College textbook.--The term `college 
        textbook' means a textbook or a set of textbooks, used 
        for, or in conjunction with, a course in postsecondary 
        education at an institution of higher education.
            ``(3) Course schedule.--The term `course schedule' 
        means a listing of the courses or classes offered by an 
        institution of higher education for an academic period, 
        as defined by the institution.
            ``(4) Custom textbook.--The term `custom 
        textbook'--
                    ``(A) means a college textbook that is 
                compiled by a publisher at the direction of a 
                faculty member or other person or adopting 
                entity in charge of selecting course materials 
                at an institution of higher education; and
                    ``(B) may include, alone or in combination, 
                items such as selections from original 
                instructor materials, previously copyrighted 
                publisher materials, copyrighted third-party 
                works, and elements unique to a specific 
                institution, such as commemorative editions.
            ``(5) Institution of higher education.--The term 
        `institution of higher education' has the meaning given 
        the term in section 102.
            ``(6) Integrated textbook.--The term `integrated 
        textbook' means a college textbook that is--
                    ``(A) combined with materials developed by 
                a third party and that, by third-party 
                contractual agreement, may not be offered by 
                publishers separately from the college textbook 
                with which the materials are combined; or
                    ``(B) combined with other materials that 
                are so interrelated with the content of the 
                college textbook that the separation of the 
                college textbook from the other materials would 
                render the college textbook unusable for its 
                intended purpose.
            ``(7) Publisher.--The term `publisher' means a 
        publisher of college textbooks or supplemental 
        materials involved in or affecting interstate commerce.
            ``(8) Substantial content.--The term `substantial 
        content' means parts of a college textbook such as new 
        chapters, new material covering additional eras of 
        time, new themes, or new subject matter.
            ``(9) Supplemental material.--The term 
        `supplemental material' means educational material 
        developed to accompany a college textbook that--
                    ``(A) may include printed materials, 
                computer disks, website access, and 
                electronically distributed materials; and
                    ``(B) is not being used as a component of 
                an integrated textbook.
    ``(c) Publisher Requirements.--
            ``(1) College textbook pricing information.--When a 
        publisher provides a faculty member or other person or 
        adopting entity in charge of selecting course materials 
        at an institution of higher education receiving Federal 
        financial assistance with information regarding a 
        college textbook or supplemental material, the 
        publisher shall include, with any such information and 
        in writing (which may include electronic 
        communications), the following:
                    ``(A) The price at which the publisher 
                would make the college textbook or supplemental 
                material available to the bookstore on the 
                campus of, or otherwise associated with, such 
                institution of higher education and, if 
                available, the price at which the publisher 
                makes the college textbook or supplemental 
                material available to the public.
                    ``(B) The copyright dates of the three 
                previous editions of such college textbook, if 
                any.
                    ``(C) A description of the substantial 
                content revisions made between the current 
                edition of the college textbook or supplemental 
                material and the previous edition, if any.
                    ``(D)(i) Whether the college textbook or 
                supplemental material is available in any other 
                format, including paperback and unbound; and
                    ``(ii) for each other format of the college 
                textbook or supplemental material, the price at 
                which the publisher would make the college 
                textbook or supplemental material in the other 
                format available to the bookstore on the campus 
                of, or otherwise associated with, such 
                institution of higher education and, if 
                available, the price at which the publisher 
                makes such other format of the college textbook 
                or supplemental material available to the 
                public.
            ``(2) Unbundling of college textbooks from 
        supplemental materials.--A publisher that sells a 
        college textbook and any supplemental material 
        accompanying such college textbook as a single bundle 
        shall also make available the college textbook and each 
        supplemental material as separate and unbundled items, 
        each separately priced.
            ``(3) Custom textbooks.--To the maximum extent 
        practicable, a publisher shall provide the information 
        required under this subsection with respect to the 
        development and provision of custom textbooks.
    ``(d) Provision of ISBN College Textbook Information in 
Course Schedules.--To the maximum extent practicable, each 
institution of higher education receiving Federal financial 
assistance shall--
            ``(1) disclose, on the institution's Internet 
        course schedule and in a manner of the institution's 
        choosing, the International Standard Book Number and 
        retail price information of required and recommended 
        college textbooks and supplemental materials for each 
        course listed in the institution's course schedule used 
        for preregistration and registration purposes, except 
        that--
                    ``(A) if the International Standard Book 
                Number is not available for such college 
                textbook or supplemental material, then the 
                institution shall include in the Internet 
                course schedule the author, title, publisher, 
                and copyright date for such college textbook or 
                supplemental material; and
                    ``(B) if the institution determines that 
                the disclosure of the information described in 
                this subsection is not practicable for a 
                college textbook or supplemental material, then 
                the institution shall so indicate by placing 
                the designation `To Be Determined' in lieu of 
                the information required under this subsection; 
                and
            ``(2) if applicable, include on the institution's 
        written course schedule a notice that textbook 
        information is available on the institution's Internet 
        course schedule, and the Internet address for such 
        schedule.
    ``(e) Availability of Information for College Bookstores.--
An institution of higher education receiving Federal financial 
assistance shall make available to a college bookstore that is 
operated by, or in a contractual relationship or otherwise 
affiliated with, the institution, as soon as is practicable 
upon the request of such college bookstore, the most accurate 
information available regarding--
            ``(1) the institution's course schedule for the 
        subsequent academic period; and
            ``(2) for each course or class offered by the 
        institution for the subsequent academic period--
                    ``(A) the information required by 
                subsection (d)(1) for each college textbook or 
                supplemental material required or recommended 
                for such course or class;
                    ``(B) the number of students enrolled in 
                such course or class; and
                    ``(C) the maximum student enrollment for 
                such course or class.
    ``(f) Additional Information.--An institution disclosing 
the information required by subsection (d)(1) is encouraged to 
disseminate to students information regarding--
            ``(1) available institutional programs for renting 
        textbooks or for purchasing used textbooks;
            ``(2) available institutional guaranteed textbook 
        buy-back programs;
            ``(3) available institutional alternative content 
        delivery programs; or
            ``(4) other available institutional cost-saving 
        strategies.
    ``(g) GAO Report.--Not later than July 1, 2013, the 
Comptroller General of the United States shall report to the 
authorizing committees on the implementation of this section by 
institutions of higher education, college bookstores, and 
publishers. The report shall particularly examine--
            ``(1) the availability of college textbook 
        information on course schedules;
            ``(2) the provision of pricing information to 
        faculty of institutions of higher education by 
        publishers;
            ``(3) the use of bundled and unbundled material in 
        the college textbook marketplace, including the 
        adoption of unbundled materials by faculty and the use 
        of integrated textbooks by publishers; and
            ``(4) the implementation of this section by 
        institutions of higher education, including the costs 
        and benefits to such institutions and to students.
    ``(h) Rule of Construction.--Nothing in this section shall 
be construed to supercede the institutional autonomy or 
academic freedom of instructors involved in the selection of 
college textbooks, supplemental materials, and other classroom 
materials.
    ``(i) No Regulatory Authority.--The Secretary shall not 
promulgate regulations with respect to this section.''.
    (b) 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. 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.
    ``(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. 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:

``SEC. 136. 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;
            ``(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. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

    ``(a) 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.
    ``(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;
                            ``(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)--
                            (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:
            ``(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. 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 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. DEFINITIONS.

    ``In this part:
            ``(1) Agent.--The term `agent' means an officer or 
        employee of a covered institution or an institution-
        affiliated organization.
            ``(2) Covered institution.--The term `covered 
        institution' means any institution of higher education, 
        as such term is defined in section 102, 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--
                            ``(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. RESPONSIBILITIES OF COVERED INSTITUTIONS, INSTITUTION-
                    AFFILIATED ORGANIZATIONS, AND LENDERS.

    ``(a) Responsibilities of Covered Institutions and 
Institution-Affiliated Organizations.--
            ``(1) Disclosures by covered institutions and 
        institution-affiliated organizations.--
                    ``(A) Preferred lender arrangement 
                disclosures.--In addition to the disclosures 
                required by subsections (a)(27) and (h) of 
                section 487 (if applicable), a covered 
                institution, or an institution-affiliated 
                organization of such covered institution, that 
                participates in a preferred lender arrangement 
                shall disclose--
                            ``(i) on such covered institution's 
                        or institution-affiliated 
                        organization's website and in all 
                        informational materials described in 
                        subparagraph (C) that describe or 
                        discuss education loans--
                                    ``(I) the maximum amount of 
                                Federal grant and loan aid 
                                under title IV available to 
                                students, in an easy to 
                                understand format;
                                    ``(II) the information 
                                required to be disclosed 
                                pursuant to section 
                                153(a)(2)(A)(i), for each type 
                                of loan described in section 
                                151(3)(A) that is offered 
                                pursuant to a preferred lender 
                                arrangement of the institution 
                                or organization to students of 
                                the institution or the families 
                                of such students; and
                                    ``(III) a statement that 
                                such institution is required to 
                                process the documents required 
                                to obtain a loan under part B 
                                of title IV from any eligible 
                                lender the student selects; and
                            ``(ii) on such covered 
                        institution's or institution-affiliated 
                        organization's website and in all 
                        informational materials described in 
                        subparagraph (C) that describe or 
                        discuss private education loans--
                                    ``(I) in the case of a 
                                covered institution, the 
                                information that the Board of 
                                Governors of the Federal 
                                Reserve System requires to be 
                                disclosed under section 
                                128(e)(11) of the Truth in 
                                Lending Act (15 U.S.C. 
                                1638(e)(11)), for each type of 
                                private education loan offered 
                                pursuant to a preferred lender 
                                arrangement of the institution 
                                to students of the institution 
                                or the families of such 
                                students; and
                                    ``(II) in the case of an 
                                institution-affiliated 
                                organization of a covered 
                                institution, the information 
                                the Board of Governors of the 
                                Federal Reserve System requires 
                                to be disclosed under section 
                                128(e)(1) of the Truth in 
                                Lending Act (15 U.S.C. 
                                1638(e)(1)), for each type of 
                                private education loan offered 
                                pursuant to a preferred lender 
                                arrangement of the organization 
                                to students of such institution 
                                or the families of such 
                                students.
                    ``(B) Private education loan disclosures.--
                A covered institution, or an institution-
                affiliated organization of such covered 
                institution, that provides information 
                regarding a private education loan from a 
                lender to a prospective borrower shall--
                            ``(i) provide the prospective 
                        borrower with the information the Board 
                        of Governors of the Federal Reserve 
                        System requires to be disclosed under 
                        section 128(e)(1) of the Truth in 
                        Lending Act (15 U.S.C. 1638(e)(1)) for 
                        such loan;
                            ``(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), at or prior to the 
                        time the lender disburses such loan, 
                        the lender shall provide the 
                        prospective borrower or borrower, in 
                        writing (including through electronic 
                        means), with the disclosures described 
                        in subsections (a) and (c) of section 
                        433.
                            ``(ii) Private education loans.--
                        For each of a lender's private 
                        education loans, the lender shall 
                        comply with the disclosure requirements 
                        under section 128(e) of the Truth in 
                        Lending Act (15 U.S.C. 1638(e)).
                    ``(B) Disclosures to the secretary.--
                            ``(i) In general.--Each lender of a 
                        loan made, insured, or guaranteed under 
                        part B of title IV shall, on an annual 
                        basis, report to the Secretary--
                                    ``(I) any reasonable 
                                expenses paid or provided under 
                                section 435(d)(5)(D) or 
                                paragraph (3)(B) or (7) of 
                                section 487(e) to any agent of 
                                a covered institution who--
                                            ``(aa) is employed 
                                        in the financial aid 
                                        office of a covered 
                                        institution; or
                                            ``(bb) otherwise 
                                        has responsibilities 
                                        with respect to 
                                        education loans or 
                                        other financial aid of 
                                        the institution; and
                                    ``(II) any similar expenses 
                                paid or provided to any agent 
                                of an institution-affiliated 
                                organization who is involved in 
                                the practice of recommending, 
                                promoting, or endorsing 
                                education loans.
                            ``(ii) Contents of reports.--Each 
                        report described in clause (i) shall 
                        include--
                                    ``(I) the amount for each 
                                specific instance in which the 
                                lender provided such expenses;
                                    ``(II) the name of any 
                                agent described in clause (i) 
                                to whom the expenses were paid 
                                or provided;
                                    ``(III) the dates of the 
                                activity for which the expenses 
                                were paid or provided; and
                                    ``(IV) a brief description 
                                of the activity for which the 
                                expenses were paid or provided.
                            ``(iii) Report to congress.--The 
                        Secretary shall summarize the 
                        information received from the lenders 
                        under this subparagraph in a report and 
                        transmit such report annually to the 
                        authorizing committees.
            ``(2) Certification by lenders.--Not later than 18 
        months after the date of enactment of 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) if an audit of a lender is required 
                pursuant to section 428(b)(1)(U)(iii), the 
                lender's compliance with the requirements under 
                this section shall be reported on and attested 
                to annually by the auditor of such lender.

``SEC. 153. LOAN INFORMATION TO BE DISCLOSED AND MODEL DISCLOSURE FORM 
                    FOR COVERED INSTITUTIONS, INSTITUTION-AFFILIATED 
                    ORGANIZATIONS, AND LENDERS PARTICIPATING IN 
                    PREFERRED LENDER ARRANGEMENTS.

    ``(a) Duties of the Secretary.--
            ``(1) Determination of minimum disclosures.--
                    ``(A) In general.--Not later than 18 months 
                after the date of enactment of 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 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
                    ``(C) update such model disclosure form 
                periodically, as necessary.
    ``(b) Duties of Lenders.--Each lender that has a preferred 
lender arrangement with a covered institution, or an 
institution-affiliated organization of such covered 
institution, with respect to education loans described in 
section 151(3)(A) shall annually, by a date determined by the 
Secretary, provide to such covered institution or such 
institution-affiliated organization, and to the Secretary, the 
information the Secretary requires pursuant to subsection 
(a)(2)(A)(i) for each type of education loan described in 
section 151(3)(A) that the lender plans to offer pursuant to 
such preferred lender arrangement to students attending such 
covered institution, or to the families of such students, for 
the next award year.
    ``(c) Duties of Covered Institutions and Institution-
Affiliated Organizations.--
            ``(1) Providing information to students and 
        families.--
                    ``(A) In general.--Each covered 
                institution, and each institution-affiliated 
                organization of such covered institution, that 
                has a preferred lender arrangement shall 
                provide the following information to students 
                attending such institution, or the families of 
                such students, as applicable:
                            ``(i) The information the Secretary 
                        requires pursuant to subsection 
                        (a)(2)(A)(i), for each type of 
                        education loan described in section 
                        151(3)(A) offered pursuant to a 
                        preferred lender arrangement to 
                        students of such institution or the 
                        families of such students.
                            ``(ii)(I) In the case of a covered 
                        institution, the information that the 
                        Board of Governors of the Federal 
                        Reserve System requires to be disclosed 
                        under section 128(e)(11) of the Truth 
                        in Lending Act (15 U.S.C. 1638(e)(11)) 
                        to the covered institution, for each 
                        type of private education loan offered 
                        pursuant to such preferred lender 
                        arrangement to students of such 
                        institution or the families of such 
                        students.
                            ``(II) In the case of an 
                        institution-affiliated organization, 
                        the information the Board of Governors 
                        of the Federal Reserve System requires 
                        to be disclosed under section 128(e)(1) 
                        of the Truth in Lending Act (15 U.S.C. 
                        1638(e)(1)), for each type of private 
                        education loan offered pursuant to such 
                        preferred lender arrangement to 
                        students of the institution with which 
                        such organization is affiliated or the 
                        families of such students.
                    ``(B) Timely provision of information.--The 
                information described in subparagraph (A) shall 
                be provided in a manner that allows for the 
                students or the families to take such 
                information into account before selecting a 
                lender or applying for an education loan.
            ``(2) Annual report.--Each covered institution, and 
        each institution-affiliated organization of such 
        covered institution, that has a preferred lender 
        arrangement, shall--
                    ``(A) prepare and submit to the Secretary 
                an annual report, by a date determined by the 
                Secretary, that includes, for each lender that 
                has a preferred lender arrangement with such 
                covered institution or organization--
                            ``(i) the information described in 
                        clauses (i) and (ii) of paragraph 
                        (1)(A); and
                            ``(ii) a detailed explanation of 
                        why such covered institution or 
                        institution-affiliated organization 
                        entered into a preferred lender 
                        arrangement with the lender, including 
                        why the terms, conditions, and 
                        provisions of each type of education 
                        loan provided pursuant to the preferred 
                        lender arrangement are beneficial for 
                        students attending such institution, or 
                        the families of such students, as 
                        applicable; and
                    ``(B) ensure that the report required under 
                subparagraph (A) is made available to the 
                public and provided to students attending or 
                planning to attend such covered institution and 
                the families of such students.
            ``(3) Code of conduct.--
                    ``(A) In general.--Each covered 
                institution, and each institution-affiliated 
                organization of such covered institution, that 
                has a preferred lender arrangement, shall 
                comply with the code of conduct requirements of 
                subparagraphs (A) through (C) of section 
                487(a)(25).
                    ``(B) Applicable code of conduct.--For 
                purposes of subparagraph (A), an institution-
                affiliated organization of a covered 
                institution shall--
                            ``(i) comply with the code of 
                        conduct developed and published by such 
                        covered institution under subparagraphs 
                        (A) and (B) of section 487(a)(25);
                            ``(ii) if such institution-
                        affiliated organization has a website, 
                        publish such code of conduct 
                        prominently on the website; and
                            ``(iii) administer and enforce such 
                        code of conduct by, at a minimum, 
                        requiring that all of such 
                        organization's agents with 
                        responsibilities with respect to 
                        education loans be annually informed of 
                        the provisions of such code of conduct.

``SEC. 154. 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 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
                    ``(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. 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 
                        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
                    ``(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 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.
                    ``(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--
                            ``(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 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--
                            ``(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) by striking part A and inserting the following:

              ``PART A--TEACHER QUALITY PARTNERSHIP GRANTS

``SEC. 201. PURPOSES.

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

``SEC. 202. PARTNERSHIP GRANTS.

    ``(a) Program Authorized.--From amounts made available 
under section 209, the Secretary is authorized to award grants, 
on a competitive basis, to eligible partnerships, to enable the 
eligible partnerships to carry out the activities described in 
subsection (c).
    ``(b) Application.--Each eligible partnership desiring a 
grant under this section shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require. Each such application 
shall contain--
            ``(1) a needs assessment of the partners in the 
        eligible partnership with respect to the preparation, 
        ongoing training, professional development, and 
        retention of general education and special education 
        teachers, principals, and, as applicable, early 
        childhood educators;
            ``(2) a description of the extent to which the 
        program to be carried out with grant funds, as 
        described in subsection (c), will prepare prospective 
        and new teachers with strong teaching skills;
            ``(3) a description of how such program will 
        prepare prospective and new teachers to understand and 
        use research and data to modify and improve classroom 
        instruction;
            ``(4) a description of--
                    ``(A) how the eligible partnership will 
                coordinate strategies and activities assisted 
                under the grant with other teacher preparation 
                or professional development programs, including 
                programs funded under the Elementary and 
                Secondary Education Act of 1965 and the 
                Individuals with Disabilities Education Act, 
                and through the National Science Foundation; 
                and
                    ``(B) how the activities of the partnership 
                will be consistent with State, local, and other 
                education reform activities that promote 
                teacher quality and student academic 
                achievement;
            ``(5) an assessment that describes the resources 
        available to the eligible partnership, including--
                    ``(A) the integration of funds from other 
                related sources;
                    ``(B) the intended use of the grant funds; 
                and
                    ``(C) the commitment of the resources of 
                the partnership to the activities assisted 
                under this section, including financial 
                support, faculty participation, and time 
                commitments, and to the continuation of the 
                activities when the grant ends;
            ``(6) a description of--
                    ``(A) how the eligible partnership will 
                meet the purposes of this part;
                    ``(B) how the partnership will carry out 
                the activities required under subsection (d) or 
                (e), based on the needs identified in paragraph 
                (1), with the goal of improving student 
                academic achievement;
                    ``(C) if the partnership chooses to use 
                funds under this section for a project or 
                activities under subsection (f) or (g), how the 
                partnership will carry out such project or 
                required activities based on the needs 
                identified in paragraph (1), with the goal of 
                improving student academic achievement;
                    ``(D) the partnership's evaluation plan 
                under section 204(a);
                    ``(E) how the partnership will align the 
                teacher preparation program under subsection 
                (c) with the--
                            ``(i) State early learning 
                        standards for early childhood education 
                        programs, as appropriate, and with the 
                        relevant domains of early childhood 
                        development; and
                            ``(ii) 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;
                    ``(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 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 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 all prospective teachers 
        and, as applicable, early childhood educators, involved 
        in the program. Such program shall do the following:
                    ``(A) Incorporate year-long opportunities 
                for enrichment, including--
                            ``(i) clinical learning in 
                        classrooms in high-need schools served 
                        by the high-need local educational 
                        agency in the eligible partnership, and 
                        identified by the eligible partnership; 
                        and
                            ``(ii) closely supervised 
                        interaction between prospective 
                        teachers and faculty, experienced 
                        teachers, principals, other 
                        administrators, and school leaders at 
                        early childhood education programs (as 
                        applicable), elementary schools, or 
                        secondary schools, and providing 
                        support for such interaction.
                    ``(B) Integrate pedagogy and classroom 
                practice and promote effective teaching skills 
                in academic content areas.
                    ``(C) Provide high-quality teacher 
                mentoring.
                    ``(D) Be offered over the course of a 
                program of teacher preparation.
                    ``(E) Be tightly aligned with course work 
                (and may be developed as a fifth year of a 
                teacher preparation program).
                    ``(F) Where feasible, allow prospective 
                teachers to learn to teach in the same local 
                educational agency in which the teachers will 
                work, learning the instructional initiatives 
                and curriculum of that local educational 
                agency.
                    ``(G) As applicable, provide training and 
                experience to enhance the teaching skills of 
                prospective teachers to better prepare such 
                teachers to meet the unique needs of teaching 
                in rural or urban communities.
                    ``(H) Provide support and training for 
                individuals participating in an activity for 
                prospective or new teachers described in this 
                paragraph or paragraph (1) or (3), and for 
                individuals who serve as mentors for such 
                teachers, based on each individual's 
                experience. Such support may include--
                            ``(i) with respect to a prospective 
                        teacher or a mentor, release time for 
                        such individual's participation;
                            ``(ii) with respect to a faculty 
                        member, receiving course workload 
                        credit and compensation for time 
                        teaching in the eligible partnership's 
                        activities; and
                            ``(iii) with respect to a mentor, a 
                        stipend, which may include bonus, 
                        differential, incentive, or performance 
                        pay, based on the mentor's extra skills 
                        and responsibilities.
            ``(3) Induction programs for new teachers.--
        Creating an induction program for new teachers or, in 
        the case of an early childhood education program, 
        providing mentoring or coaching for new early childhood 
        educators.
            ``(4) Support and training for participants in 
        early childhood education programs.--In the case of an 
        eligible partnership focusing on early childhood 
        educator preparation, implementing initiatives that 
        increase compensation for early childhood educators who 
        attain associate or baccalaureate degrees in early 
        childhood education.
            ``(5) Teacher recruitment.--Developing and 
        implementing effective mechanisms (which may include 
        alternative routes to State certification of teachers) 
        to ensure that the eligible partnership is able to 
        recruit qualified individuals to become 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 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.
                            ``(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 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.
                                    ``(III) Use of 
                                repayments.--An eligible 
                                partnership shall use any 
                                repayment received under this 
                                clause to carry out additional 
                                activities that are consistent 
                                with the purposes of this 
                                subsection.
    ``(f) Partnership Grants for the Development of Leadership 
Programs.--
            ``(1) In general.--An eligible partnership that 
        receives a grant under this section may carry out an 
        effective school leadership program, which may be 
        carried out in partnership with a local educational 
        agency located in a rural area and that shall include 
        all of the following activities:
                    ``(A) Preparing individuals enrolled or 
                preparing to enroll in school leadership 
                programs for careers as superintendents, 
                principals, early childhood education program 
                directors, or other school leaders (including 
                individuals preparing to work in local 
                educational agencies located in rural areas who 
                may perform multiple duties in addition to the 
                role of a school leader).
                    ``(B) Promoting strong leadership skills 
                and, as applicable, techniques for school 
                leaders to effectively--
                            ``(i) create and maintain a data-
                        driven, professional learning community 
                        within the leader's school;
                            ``(ii) provide a climate conducive 
                        to the professional development of 
                        teachers, with a focus on improving 
                        student academic achievement and the 
                        development of effective instructional 
                        leadership skills;
                            ``(iii) understand the teaching and 
                        assessment skills needed to support 
                        successful classroom instruction and to 
                        use data to evaluate teacher 
                        instruction and drive teacher and 
                        student learning;
                            ``(iv) manage resources and school 
                        time to improve student academic 
                        achievement and ensure the school 
                        environment is safe;
                            ``(v) engage and involve parents, 
                        community members, the local 
                        educational agency, businesses, and 
                        other community leaders, to leverage 
                        additional resources to improve student 
                        academic achievement; and
                            ``(vi) understand how students 
                        learn and develop in order to increase 
                        academic achievement for all students.
                    ``(C) Ensuring that individuals who 
                participate in the school leadership program 
                receive--
                            ``(i) effective preservice 
                        preparation as described in 
                        subparagraph (D);
                            ``(ii) mentoring; and
                            ``(iii) if applicable, full State 
                        certification or licensure to become a 
                        school leader.
                    ``(D) Developing and improving a sustained 
                and high-quality preservice clinical education 
                program to further develop the leadership 
                skills of all prospective school leaders 
                involved in the program. Such clinical 
                education program shall do the following:
                            ``(i) Incorporate year-long 
                        opportunities for enrichment, 
                        including--
                                    ``(I) clinical learning in 
                                high-need schools served by the 
                                high-need local educational 
                                agency or a local educational 
                                agency located in a rural area 
                                in the eligible partnership and 
                                identified by the eligible 
                                partnership; and
                                    ``(II) closely supervised 
                                interaction between prospective 
                                school leaders and faculty, new 
                                and experienced teachers, and 
                                new and experienced school 
                                leaders, in such high-need 
                                schools.
                            ``(ii) Integrate pedagogy and 
                        practice and promote effective 
                        leadership skills, meeting the unique 
                        needs of urban, rural, or 
                        geographically isolated communities, as 
                        applicable.
                            ``(iii) Provide for mentoring of 
                        new school leaders.
                    ``(E) Creating an induction program for new 
                school leaders.
                    ``(F) Developing and implementing effective 
                mechanisms to ensure that the eligible 
                partnership is able to recruit qualified 
                individuals to become school leaders through 
                the activities of the eligible partnership, 
                which may include an emphasis on recruiting 
                into school leadership professions--
                            ``(i) individuals from 
                        underrepresented populations;
                            ``(ii) individuals to serve as 
                        superintendents, principals, or other 
                        school administrators in rural and 
                        geographically isolated communities and 
                        school leader shortage areas; and
                            ``(iii) mid-career professionals 
                        from other occupations, former military 
                        personnel, and recent college graduates 
                        with a record of academic distinction.
            ``(2) Selection of individuals for the leadership 
        program.--In order to be eligible for the school 
        leadership program under this subsection, an individual 
        shall be enrolled in or preparing to enroll in an 
        institution of higher education, and shall--
                    ``(A) be a--
                            ``(i) recent graduate of an 
                        institution of higher education;
                            ``(ii) mid-career professional from 
                        outside the field of education with 
                        strong content knowledge or a record of 
                        professional accomplishment;
                            ``(iii) current teacher who is 
                        interested in becoming a school leader; 
                        or
                            ``(iv) school leader who is 
                        interested in becoming a 
                        superintendent; and
                    ``(B) submit an application to the 
                leadership program.
    ``(g) Partnership With Digital Education Content 
Developer.--An eligible partnership that receives a grant under 
this section may use grant funds provided to carry out the 
activities described in subsection (d) or (e), or both, to 
partner with a television public broadcast station, as defined 
in section 397(6) of the Communications Act of 1934 (47 U.S.C. 
397(6)), or another entity that develops digital educational 
content, for the purpose of improving the quality of pre-
baccalaureate teacher preparation programs or to enhance the 
quality of preservice training for prospective teachers.
    ``(h) Evaluation and Reporting.--The Secretary shall--
            ``(1) evaluate the programs assisted under this 
        section; and
            ``(2) make publicly available a report detailing 
        the Secretary's evaluation of each such program.
    ``(i) Consultation.--
            ``(1) In general.--Members of an eligible 
        partnership that receives a grant under this section 
        shall engage in regular consultation throughout the 
        development and implementation of programs and 
        activities carried out under this section.
            ``(2) Regular communication.--To ensure timely and 
        meaningful consultation as described in paragraph (1), 
        regular communication shall occur among all members of 
        the eligible partnership, including the high-need local 
        educational agency. Such communication shall continue 
        throughout the implementation of the grant and the 
        assessment of programs and activities under this 
        section.
            ``(3) Written consent.--The Secretary may approve 
        changes in grant activities of a grant under this 
        section only if the eligible partnership submits to the 
        Secretary a written consent 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. ADMINISTRATIVE PROVISIONS.

    ``(a) Duration; Number of Awards; Payments.--
            ``(1) Duration.--A grant awarded under this part 
        shall be awarded for a period of five years.
            ``(2) Number of awards.--An eligible partnership 
        may not receive more than one grant during a five-year 
        period. Nothing in this title shall be construed to 
        prohibit an individual member, that can demonstrate 
        need, of an eligible partnership that receives a grant 
        under this title from entering into another eligible 
        partnership consisting of new members and receiving a 
        grant with such other eligible partnership before the 
        five-year period described in the preceding sentence 
        applicable to the eligible partnership with which the 
        individual member has first partnered has expired.
    ``(b) Peer Review.--
            ``(1) Panel.--The Secretary shall provide the 
        applications submitted under this part to a peer review 
        panel for evaluation. With respect to each application, 
        the peer review panel shall initially recommend the 
        application for funding or for disapproval.
            ``(2) Priority.--The Secretary, in funding 
        applications under this part, shall give priority--
                    ``(A) to eligible partnerships that include 
                an institution of higher education whose 
                teacher preparation program has a rigorous 
                selection process to ensure the highest quality 
                of students entering such program; and
                    ``(B)(i) to applications from broad-based 
                eligible partnerships that involve businesses 
                and community organizations; or
                    ``(ii) to eligible partnerships so that the 
                awards promote an equitable geographic 
                distribution of grants among rural and urban 
                areas.
            ``(3) Secretarial selection.--The Secretary shall 
        determine, based on the peer review process, which 
        applications shall receive funding and the amounts of 
        the grants. In determining grant amounts, the Secretary 
        shall take into account the total amount of funds 
        available for all grants under this part and the types 
        of activities proposed to be carried out by the 
        eligible partnership.
    ``(c) Matching Requirements.--
            ``(1) In general.--Each eligible partnership 
        receiving a grant under this part shall provide, from 
        non-Federal sources, an amount equal to 100 percent of 
        the amount of the grant, which may be provided in cash 
        or in-kind, to carry out the activities supported by 
        the grant.
            ``(2) Waiver.--The Secretary may waive all or part 
        of the matching requirement described in paragraph (1) 
        for any fiscal year for an eligible partnership if the 
        Secretary determines that applying the matching 
        requirement to the eligible partnership would result in 
        serious hardship or an inability to carry out the 
        authorized activities described in this part.
    ``(d) Limitation on Administrative Expenses.--An eligible 
partnership that receives a grant under this part may use not 
more than two percent of the funds provided to administer the 
grant.

``SEC. 204. ACCOUNTABILITY AND EVALUATION.

    ``(a) Eligible Partnership Evaluation.--Each eligible 
partnership submitting an application for a grant under this 
part shall establish, and include in such application, an 
evaluation plan that includes strong and measurable performance 
objectives. The plan shall include objectives and measures for 
increasing--
            ``(1) achievement for all prospective and new 
        teachers, as measured by the eligible partnership;
            ``(2) teacher retention in the first three years of 
        a teacher's career;
            ``(3) improvement in the pass rates and scaled 
        scores for initial State certification or licensure of 
        teachers; and
            ``(4)(A) the percentage of 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 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 the Secretary determines 
that an eligible partnership receiving a grant under this part 
is not making substantial progress in meeting the purposes, 
goals, objectives, and measures of the grant, as appropriate, 
by the end of the third year of a grant under this part, then 
the Secretary--
            ``(1) shall cancel the grant; and
            ``(2) may use any funds returned or available 
        because of such cancellation under paragraph (1) to--
                    ``(A) increase other grant awards under 
                this part; or
                    ``(B) award new grants to other eligible 
                partnerships under this part.
    ``(d) Evaluation and Dissemination.--The Secretary shall 
evaluate the activities funded under this part and report the 
findings regarding the evaluation of such activities to the 
authorizing committees. The Secretary shall broadly 
disseminate--
            ``(1) successful practices developed by eligible 
        partnerships under this part; and
            ``(2) information regarding such practices that 
        were found to be ineffective.

``SEC. 205. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.

    ``(a) Institutional and Program Report Cards on the Quality 
of Teacher Preparation.--
            ``(1) Report card.--Each institution of higher 
        education that conducts a traditional teacher 
        preparation program or alternative routes to State 
        certification or licensure program and that enrolls 
        students receiving Federal assistance under this Act 
        shall report annually to the State and the general 
        public, in a uniform and comprehensible manner that 
        conforms with the definitions and methods established 
        by the Secretary, the following:
                    ``(A) Goals and assurances.--
                            ``(i) For the most recent year for 
                        which the information is available for 
                        the institution--
                                    ``(I) whether the goals set 
                                under section 206 have been 
                                met; and
                                    ``(II) a description of the 
                                activities the institution 
                                implemented to achieve such 
                                goals.
                            ``(ii) A description of the steps 
                        the institution is taking to improve 
                        its performance in meeting the annual 
                        goals set under section 206.
                            ``(iii) A description of the 
                        activities the institution has 
                        implemented to meet the assurances 
                        provided under section 206.
                    ``(B) Pass rates and scaled scores.--For 
                the most recent year for which the information 
                is available for those students who took the 
                assessments used for teacher certification or 
                licensure by the State in which the program is 
                located and are enrolled in the traditional 
                teacher preparation program or alternative 
                routes to State certification or licensure 
                program, and for those who have taken such 
                assessments and have completed the traditional 
                teacher preparation program or alternative 
                routes to State certification or licensure 
                program during the two-year period preceding 
                such year, for each of such assessments--
                            ``(i) the percentage of students 
                        who have completed 100 percent of the 
                        nonclinical coursework and taken the 
                        assessment who pass such assessment;
                            ``(ii) the percentage of all 
                        students who passed such assessment;
                            ``(iii) the percentage of students 
                        who have taken such assessment who 
                        enrolled in and completed the 
                        traditional teacher preparation program 
                        or alternative routes to State 
                        certification or licensure program, as 
                        applicable;
                            ``(iv) the average scaled score for 
                        all students who took such assessment;
                            ``(v) a comparison of the program's 
                        pass rates with the average pass rates 
                        for programs in the State; and
                            ``(vi) a comparison of the 
                        program's average scaled scores with 
                        the average scaled scores for programs 
                        in the State.
                    ``(C) Program information.--A description 
                of--
                            ``(i) the criteria for admission 
                        into the program;
                            ``(ii) the number of students in 
                        the program (disaggregated by race, 
                        ethnicity, and gender);
                            ``(iii) the average number of hours 
                        of supervised clinical experience 
                        required for those in the program;
                            ``(iv) the number of full-time 
                        equivalent faculty and students in the 
                        supervised clinical experience; and
                            ``(v) the total number of students 
                        who have been certified or licensed as 
                        teachers, disaggregated by subject and 
                        area of certification or licensure.
                    ``(D) Statement.--In States that require 
                approval or accreditation of teacher 
                preparation programs, a statement of whether 
                the institution's program is so approved or 
                accredited, and by whom.
                    ``(E) Designation as low-performing.--
                Whether the program has been designated as low-
                performing by the State under section 207(a).
                    ``(F) Use of technology.--A description of 
                the activities, including activities consistent 
                with the principles of universal design for 
                learning, that prepare teachers to integrate 
                technology effectively into curricula and 
                instruction, and to use technology effectively 
                to collect, manage, and analyze data in order 
                to improve teaching and learning for the 
                purpose of increasing student academic 
                achievement.
                    ``(G) Teacher training.--A description of 
                the activities that prepare general education 
                and special education teachers to teach 
                students with disabilities effectively, 
                including training related to participation as 
                a member of individualized education program 
                teams, as defined in section 614(d)(1)(B) of 
                the Individuals with Disabilities Education 
                Act, and to effectively teach students who are 
                limited English proficient.
            ``(2) Report.--Each eligible partnership receiving 
        a grant under section 202 shall report annually on the 
        progress of the eligible partnership toward meeting the 
        purposes of this part and the objectives and measures 
        described in section 204(a).
            ``(3) Fines.--The Secretary may impose a fine not 
        to exceed $27,500 on an institution of higher education 
        for failure to provide the information described in 
        this subsection in a timely or accurate manner.
            ``(4) Special rule.--In the case of an institution 
        of higher education that conducts a traditional teacher 
        preparation program or alternative routes to State 
        certification or licensure program and has fewer than 
        10 scores reported on any single initial teacher 
        certification or licensure assessment during an 
        academic year, the institution shall collect and 
        publish information, as required under paragraph 
        (1)(B), with respect to an average pass rate and scaled 
        score on each State certification or licensure 
        assessment taken over a three-year period.
    ``(b) State Report Card on the Quality of Teacher 
Preparation.--
            ``(1) In general.--Each State that receives funds 
        under this Act shall provide to the Secretary, and make 
        widely available to the general public, in a uniform 
        and comprehensible manner that conforms with the 
        definitions and methods established by the Secretary, 
        an annual State report card on the quality of teacher 
        preparation in the State, both for traditional teacher 
        preparation programs and for alternative routes to 
        State certification or licensure programs, which shall 
        include not less than the following:
                    ``(A) A description of the reliability and 
                validity of the teacher certification and 
                licensure assessments, and any other 
                certification and licensure requirements, used 
                by the State.
                    ``(B) The standards and criteria that 
                prospective teachers must meet to attain 
                initial teacher certification or licensure and 
                to be certified or licensed to teach particular 
                academic subjects, areas, or grades within the 
                State.
                    ``(C) A description of how the assessments 
                and requirements described in subparagraph (A) 
                are aligned with the 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);
                            ``(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 Secretary shall prescribe 
regulations to ensure the reliability, validity, integrity, and 
accuracy of the data submitted pursuant to this section.
    ``(d) Report of the Secretary on the Quality of Teacher 
Preparation.--
            ``(1) Report card.--The Secretary shall annually 
        provide to the authorizing committees, and publish and 
        make widely available, a report card on teacher 
        qualifications and preparation in the United States, 
        including all the information reported in subparagraphs 
        (A) through (L) of subsection (b)(1). Such report shall 
        identify States for which eligible partnerships 
        received a grant under this part.
            ``(2) Report to congress.--The Secretary shall 
        prepare and submit a report to the authorizing 
        committees that contains the following:
                    ``(A) A comparison of States' efforts to 
                improve the quality of the current and future 
                teaching force.
                    ``(B) A comparison of eligible 
                partnerships' efforts to improve the quality of 
                the current and future teaching force.
                    ``(C) The national mean and median scaled 
                scores and pass rate on any standardized test 
                that is used in more than one State for teacher 
                certification or licensure.
            ``(3) Special rule.--In the case of a teacher 
        preparation program with fewer than ten scores reported 
        on any single initial teacher certification or 
        licensure assessment during an academic year, the 
        Secretary shall collect and publish, and make publicly 
        available, information with respect to an average pass 
        rate and scaled score on each State certification or 
        licensure assessment taken over a three-year period.
    ``(e) Coordination.--The Secretary, to the extent 
practicable, shall coordinate the information collected and 
published under this part among States for individuals who took 
State teacher certification or licensure assessments in a State 
other than the State in which the individual received the 
individual's most recent degree.

``SEC. 206. TEACHER DEVELOPMENT.

    ``(a) Annual Goals.--Each institution of higher education 
that conducts a traditional teacher preparation program 
(including programs that offer any ongoing professional 
development programs) or alternative routes to State 
certification or licensure program, and that enrolls students 
receiving Federal assistance under this Act, shall set annual 
quantifiable goals for increasing the number of prospective 
teachers trained in teacher shortage areas designated by the 
Secretary or by the State educational agency, including 
mathematics, science, special education, and instruction of 
limited English proficient students.
    ``(b) Assurances.--Each institution described in subsection 
(a) shall provide assurances to the Secretary that--
            ``(1) training provided to prospective teachers 
        responds to the identified needs of the local 
        educational agencies or States where the institution's 
        graduates are likely to teach, based on past hiring and 
        recruitment trends;
            ``(2) training provided to prospective teachers is 
        closely linked with the needs of schools and the 
        instructional decisions new teachers face in the 
        classroom;
            ``(3) prospective special education teachers 
        receive course work in core academic subjects and 
        receive training in providing instruction in core 
        academic subjects;
            ``(4) general education teachers receive training 
        in providing instruction to diverse populations, 
        including children with disabilities, limited English 
        proficient students, and children from low-income 
        families; and
            ``(5) prospective teachers receive training on how 
        to effectively teach in urban and rural schools, as 
        applicable.
    ``(c) Rule of Construction.--Nothing in this section shall 
be construed to require an institution to create a new teacher 
preparation area of concentration or degree program or adopt a 
specific curriculum in complying with this section.

``SEC. 207. STATE FUNCTIONS.

    ``(a) State Assessment.--In order to receive funds under 
this Act, a State shall conduct an assessment to identify low-
performing teacher preparation programs in the State and to 
assist such programs through the provision of technical 
assistance. Each such State shall provide the Secretary with an 
annual list of low-performing teacher preparation programs and 
an identification of those programs at risk of being placed on 
such list, as applicable. Such assessment shall be described in 
the report under section 205(b). Levels of performance shall be 
determined solely by the State and may include criteria based 
on information collected pursuant to this part, including 
progress in meeting the goals of--
            ``(1) increasing the percentage of 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. 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--
            ``(1) to the extent practicable, collect data 
        comparable to the data required under this part from 
        States, local educational agencies, institutions of 
        higher education, or other entities that administer 
        such assessments to teachers or prospective teachers; 
        and
            ``(2) notwithstanding any other provision of this 
        part, use such data to carry out requirements of this 
        part related to assessments, pass rates, and scaled 
        scores.
    ``(c) Release of Information to Teacher Preparation 
Programs.--
            ``(1) In general.--For the purpose of improving 
        teacher preparation programs, a State that receives 
        funds under this Act, or that participates as a member 
        of a partnership, consortium, or other entity that 
        receives such funds, shall provide to a teacher 
        preparation program, upon the request of the teacher 
        preparation program, any and all pertinent education-
        related information that--
                    ``(A) may enable the teacher preparation 
                program to evaluate the effectiveness of the 
                program's graduates or the program itself; and
                    ``(B) is possessed, controlled, or 
                accessible by the State.
            ``(2) Content of information.--The information 
        described in paragraph (1)--
                    ``(A) shall include an identification of 
                specific individuals who graduated from the 
                teacher preparation program to enable the 
                teacher preparation program to evaluate the 
                information provided to the program from the 
                State with the program's own data about the 
                specific courses taken by, and field 
                experiences of, the individual graduates; and
                    ``(B) may include--
                            ``(i) kindergarten through grade 12 
                        academic achievement and demographic 
                        data, without revealing personally 
                        identifiable information about an 
                        individual student, for students who 
                        have been taught by graduates of the 
                        teacher preparation program; and
                            ``(ii) teacher effectiveness 
                        evaluations for teachers who graduated 
                        from the teacher preparation program.

``SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

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

                 ``PART B--ENHANCING TEACHER EDUCATION

``SEC. 230. AUTHORIZATION OF APPROPRIATIONS.

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

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

``SEC. 231. PROGRAM AUTHORIZED.

    ``(a) Program Authority.--The Secretary is authorized to 
award grants to, or enter into contracts or cooperative 
agreements with, eligible consortia to pay the Federal share of 
the costs of projects to--
            ``(1) 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. USES OF FUNDS.

    ``(a) In General.--An eligible consortium that receives a 
grant or enters into a contract or cooperative agreement under 
this subpart shall use funds made available under this subpart 
to carry out a project that--
            ``(1) develops long-term partnerships among members 
        of the consortium that are focused on effective 
        teaching with modern digital tools and content that 
        substantially connect preservice preparation of teacher 
        candidates with high-need schools; or
            ``(2) transforms the way departments, schools, and 
        colleges of education teach classroom technology 
        integration, including the principles of universal 
        design, to teacher candidates.
    ``(b) Uses of Funds for Partnership Grants.--In carrying 
out a project under subsection (a)(1), an eligible consortium 
shall--
            ``(1) provide teacher candidates, early in their 
        preparation, with field experiences with technology in 
        educational settings;
            ``(2) build the skills of teacher candidates to 
        support technology-rich instruction, assessment and 
        learning management in content areas, technology 
        literacy, an understanding of the principles of 
        universal design, and the development of other skills 
        for entering the workforce;
            ``(3) provide professional development in the use 
        of technology for teachers, administrators, and content 
        specialists who participate in field placement;
            ``(4) provide professional development of 
        technology pedagogical skills for faculty of 
        departments, schools, and colleges of education and 
        arts and sciences;
            ``(5) implement strategies for the mentoring of 
        teacher candidates by members of the consortium with 
        respect to technology implementation;
            ``(6) evaluate teacher candidates during the first 
        years of teaching to fully assess outcomes of the 
        project;
            ``(7) build collaborative learning communities for 
        technology integration within the consortium to sustain 
        meaningful applications of technology in the classroom 
        during teacher preparation and early career practice; 
        and
            ``(8) evaluate the effectiveness of the project.
    ``(c) Uses of Funds for Transformation Grants.--In carrying 
out a project under subsection (a)(2), an eligible consortium 
shall--
            ``(1) redesign curriculum to require collaboration 
        between the department, school, or college of education 
        faculty and the department, school, or college of arts 
        and sciences faculty who teach content or methods 
        courses for training teacher candidates;
            ``(2) collaborate between the department, school, 
        or college of education faculty and the department, 
        school, or college of arts and science faculty and 
        academic content specialists at the local educational 
        agency to educate preservice teachers who can integrate 
        technology and pedagogical skills in content areas;
            ``(3) collaborate between the department, school, 
        or college of education faculty and the department, 
        school, or college of arts and sciences faculty who 
        teach courses to preservice teachers to--
                    ``(A) develop and implement a plan for 
                preservice teachers and continuing educators 
                that demonstrates effective instructional 
                strategies and application of such strategies 
                in the use of digital tools to transform the 
                teaching and learning process; and
                    ``(B) better reach underrepresented 
                preservice teacher populations with programs 
                that connect such preservice teacher 
                populations with applications of technology;
            ``(4) collaborate among faculty and students to 
        create and disseminate case studies of technology 
        applications in classroom settings with a goal of 
        improving student academic achievement in high-need 
        schools;
            ``(5) provide additional technology resources for 
        preservice teachers to plan and implement technology 
        applications in classroom settings that provide 
        evidence of student learning; and
            ``(6) bring together expertise from departments, 
        schools, or colleges of education, arts and science 
        faculty, and academic content specialists at the local 
        educational agency to share and disseminate technology 
        applications in the classroom through teacher 
        preparation and into early career practice.

``SEC. 233. APPLICATION REQUIREMENTS.

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

``SEC. 234. EVALUATION.

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

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

``SEC. 241. DEFINITIONS.

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

``SEC. 242. AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE.

    ``(a) Program Authorized.--From the amounts appropriated to 
carry out this part, the Secretary is authorized to award 
competitive grants to eligible institutions to establish 
centers of excellence.
    ``(b) Use of Funds.--Grants provided by the Secretary under 
this subpart shall be used to ensure that current and future 
teachers 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 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. TEACH TO REACH GRANTS.

    ``(a) Authorization of Program.--
            ``(1) In general.--The Secretary is authorized to 
        award grants, on a competitive basis, to eligible 
        partnerships to improve the preparation of general 
        education teacher candidates to ensure that such 
        teacher candidates possess the knowledge and skills 
        necessary to effectively instruct students with 
        disabilities in general education classrooms.
            ``(2) Duration of grants.--A grant under this 
        section shall be awarded for a period of not more than 
        five years.
            ``(3) Non-federal share.--An eligible partnership 
        that receives a grant under this section shall provide 
        not less than 25 percent of the cost of the activities 
        carried out with such grant from non-Federal sources, 
        which may be provided in cash or in kind.
    ``(b) Definition of Eligible Partnership.--In this section, 
the term `eligible partnership' means a partnership that--
            ``(1) shall include--
                    ``(A) one or more departments or programs 
                at an institution of higher education--
                            ``(i) that prepare elementary or 
                        secondary general education teachers;
                            ``(ii) that have a program of study 
                        that leads to an undergraduate degree, 
                        a master's degree, or completion of a 
                        postbaccalaureate program required for 
                        teacher certification; and
                            ``(iii) the graduates of which 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 
at such time, in such manner, and containing such information 
as the Secretary may require. Such application shall include--
            ``(1) a self-assessment by the eligible partnership 
        of the existing teacher preparation program at the 
        institution of higher education and needs related to 
        preparing general education teacher candidates to 
        instruct students with disabilities; and
            ``(2) an assessment of the existing personnel needs 
        for general education teachers who instruct students 
        with disabilities, performed by the local educational 
        agency in which most graduates of the teacher 
        preparation program are likely to teach after 
        completion of the program under subsection (c)(1).
    ``(e) Peer Review.--The Secretary shall convene a peer 
review committee to review applications for grants under this 
section and to make recommendations to the Secretary regarding 
the selection of grantees. Members of the peer review committee 
shall be recognized experts in the fields of special education, 
teacher preparation, and general education and shall not be in 
a position to benefit financially from any grants awarded under 
this section.
    ``(f) Evaluations.--
            ``(1) By the partnership.--
                    ``(A) In general.--An eligible partnership 
                receiving a grant under this section shall 
                conduct an evaluation at the end of the grant 
                period to determine--
                            ``(i) the effectiveness of the 
                        general education teachers who 
                        completed a program under subsection 
                        (c)(1) with respect to instruction of 
                        students with disabilities in general 
                        education classrooms; and
                            ``(ii) the systemic impact of the 
                        activities carried out by such grant on 
                        how each institution of higher 
                        education that is a member of the 
                        partnership prepares teachers for 
                        instruction in elementary schools and 
                        secondary schools.
                    ``(B) Report to the secretary.--Each 
                eligible partnership performing an evaluation 
                under subparagraph (A) shall report the 
                findings of such evaluation to the Secretary.
            ``(2) Report by the secretary.--Not later than 180 
        days after the last day of the grant period under this 
        section, the Secretary shall make available to Congress 
        and the public the findings of the evaluations 
        submitted under paragraph (1), and information on best 
        practices related to effective instruction of students 
        with disabilities in general education classrooms.

                   ``Subpart 4--Adjunct Teacher Corps

``SEC. 255. ADJUNCT TEACHER CORPS.

    ``(a) Purpose.--The purpose of this section is to create 
opportunities for professionals and other individuals with 
subject matter expertise in mathematics, science, or critical 
foreign languages to provide such subject matter expertise to 
secondary school students on an adjunct basis.
    ``(b) Program Authorized.--The Secretary is authorized to 
award grants on a competitive basis to eligible entities to 
identify, recruit, and train qualified individuals with subject 
matter expertise in mathematics, science, or critical foreign 
languages to serve as adjunct content specialists.
    ``(c) Duration of Grants.--The Secretary may award grants 
under this section for a period of not more than five years.
    ``(d) Eligible Entity.--In this section, the term `eligible 
entity' means--
            ``(1) a local educational agency; or
            ``(2) a partnership consisting of a local 
        educational agency, serving as a fiscal agent, and a 
        public or private educational organization or business.
    ``(e) Uses of Funds.--An eligible entity that receives a 
grant under this section is authorized to use such grant to 
carry out one or both of the following activities:
            ``(1) To develop the capacity of the eligible 
        entity to identify, recruit, and train individuals with 
        subject matter expertise in mathematics, science, or 
        critical foreign languages who are not employed in the 
        elementary and secondary education system (including 
        individuals in business and government, and individuals 
        who would participate through distance-learning 
        arrangements) to become adjunct content specialists.
            ``(2) To provide preservice training and on-going 
        professional development to adjunct content 
        specialists.
    ``(f) Applications.--
            ``(1) Application required.--An eligible entity 
        that desires a grant under this section shall submit an 
        application to the Secretary at such time, in such 
        manner, and containing such information as the 
        Secretary may require.
            ``(2) Contents.--An application submitted under 
        paragraph (1) shall include--
                    ``(A) a description of--
                            ``(i) the need for, and expected 
                        benefits of using, adjunct content 
                        specialists in the schools served by 
                        the local educational agency, which may 
                        include information on the difficulty 
                        the local educational agency faces in 
                        recruiting qualified faculty in 
                        mathematics, science, and critical 
                        foreign language courses;
                            ``(ii) measurable objectives for 
                        the activities supported by the grant, 
                        including the number of adjunct content 
                        specialists the eligible entity intends 
                        to place in schools and classrooms, and 
                        the gains in academic achievement 
                        expected as a result of the addition of 
                        such specialists;
                            ``(iii) how the eligible entity 
                        will establish criteria for and recruit 
                        the most qualified individuals and 
                        public or private organizations and 
                        businesses to participate in the 
                        activities supported by the grant;
                            ``(iv) how the eligible entity will 
                        provide preservice training and on-
                        going professional development to 
                        adjunct content specialists to ensure 
                        that such specialists have the capacity 
                        to serve effectively;
                            ``(v) how the eligible entity will 
                        use funds received under this section, 
                        including how the eligible entity will 
                        evaluate the success of the activities 
                        supported by the grant; and
                            ``(vi) how the eligible entity will 
                        support and continue the activities 
                        supported by the grant after the grant 
                        has expired, including how such entity 
                        will seek support from other sources, 
                        such as State and local government and 
                        the private sector; and
                    ``(B) an assurance that the use of adjunct 
                content specialists will not result in the 
                displacement or transfer of currently employed 
                teachers nor a reduction in the number of 
                overall teachers in the district.
    ``(g) Priorities.--In awarding grants under this section, 
the Secretary shall give priority to eligible entities that 
demonstrate in the application for such a grant a plan to--
            ``(1) serve the schools served by the local 
        educational agency that have a large number or 
        percentage of students performing below grade level in 
        mathematics, science, or critical foreign language 
        courses;
            ``(2) serve local educational agencies that have a 
        large number or percentage of students from low-income 
        families; and
            ``(3) recruit and train individuals to serve as 
        adjunct content specialists in schools that have an 
        insufficient number of teachers in mathematics, 
        science, or critical foreign languages.
    ``(h) Matching Requirement.--Each eligible entity that 
receives a grant under this section shall provide, from non-
Federal sources, an amount equal to 100 percent of the amount 
of such grant (in cash or in kind) to carry out the activities 
supported by such grant.
    ``(i) Performance Report.--Each eligible entity receiving a 
grant under this section shall prepare and submit to the 
Secretary a final report on the results of the activities 
supported by such grant, which shall contain such information 
as the Secretary may require, including any improvements in 
student academic achievement as a result of the use of adjunct 
content specialists.
    ``(j) Evaluation.--The Secretary shall evaluate the 
activities supported by grants under this section, including 
the impact of such activities on student academic achievement, 
and shall report the results of such evaluation to the 
authorizing committees.
    ``(k) Definition.--In this section, the term `adjunct 
content specialist' means an individual who--
            ``(1) meets the 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. GRADUATE FELLOWSHIPS TO PREPARE FACULTY IN HIGH-NEED AREAS 
                    AT COLLEGES OF EDUCATION.

    ``(a) Grants by Secretary.--The Secretary shall make grants 
to eligible institutions to enable such institutions to make 
graduate fellowship awards to qualified individuals in 
accordance with the provisions of this section.
    ``(b) Eligible Institutions.--In this section, the term 
`eligible institution' means an institution of higher 
education, or a consortium of such institutions, that offers a 
program of postbaccalaureate study leading to a doctoral 
degree.
    ``(c) Applications.--An eligible institution that desires a 
grant under this section shall submit an application to the 
Secretary at such time, in such manner, and containing such 
information as the Secretary may reasonably require.
    ``(d) Types of Fellowships Supported.--
            ``(1) In general.--An eligible institution that 
        receives a grant under this section shall use the grant 
        funds to provide graduate fellowships to individuals 
        who are preparing for the professorate in order to 
        prepare individuals to become 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.
                    ``(B) Awards based on need.--A stipend 
                provided under this section shall be in an 
                amount equal to the level of support provided 
                by the National Science Foundation graduate 
                fellowships, except that such stipend shall be 
                adjusted as necessary so as not to exceed the 
                fellowship recipient's demonstrated need, as 
                determined by the institution of higher 
                education where the fellowship recipient is 
                enrolled.
            ``(3) Service requirement.--
                    ``(A) Teaching required.--Each individual 
                who receives a graduate fellowship under this 
                section and earns a doctoral degree shall teach 
                for one year at an institution of higher 
                education that has a teacher preparation 
                program for each year of fellowship support 
                received under this section.
                    ``(B) Institutional obligation.--Each 
                eligible institution that receives a grant 
                under this section shall provide an assurance 
                to the Secretary that the institution has 
                inquired of and determined the decision of each 
                individual who has received a graduate 
                fellowship to, within three years of receiving 
                a doctoral degree, begin employment at an 
                institution of higher education that has a 
                teacher preparation program, as required by 
                this section.
                    ``(C) Agreement required.--Prior to 
                receiving an initial graduate fellowship award, 
                and upon the annual renewal of the graduate 
                fellowship award, an individual selected to 
                receive a graduate fellowship under this 
                section shall sign an agreement with the 
                Secretary agreeing to pursue a career in 
                instruction at an institution of higher 
                education that has a teacher preparation 
                program in accordance with subparagraph (A).
                    ``(D) Failure to comply.--If an individual 
                who receives a graduate fellowship award under 
                this section fails to comply with the agreement 
                signed pursuant to subparagraph (C), the sum of 
                the amounts of any graduate fellowship award 
                received by such recipient shall, upon a 
                determination of such a failure, be treated as 
                a Federal Direct Unsubsidized Stafford Loan 
                under part D of title IV, and shall be subject 
                to repayment, together with interest thereon 
                accruing from the date of the fellowship award, 
                in accordance with terms and conditions 
                specified by the Secretary in regulations under 
                this subpart.
                    ``(E) Modified service requirement.--The 
                Secretary may waive or modify the service 
                requirement of this paragraph in accordance 
                with regulations promulgated by the Secretary 
                with respect to the criteria to determine the 
                circumstances under which compliance with such 
                service requirement is inequitable or 
                represents a substantial hardship. The 
                Secretary may waive the service requirement if 
                compliance by the fellowship recipient is 
                determined to be inequitable or represent a 
                substantial hardship--
                            ``(i) because the individual is 
                        permanently and totally disabled at the 
                        time of the waiver request; or
                            ``(ii) based on documentation 
                        presented to the Secretary of 
                        substantial economic or personal 
                        hardship.
    ``(f) Institutional Support for Fellows.--An eligible 
institution that receives a grant under this section may 
reserve not more than ten percent of the grant amount for 
academic and career transition support for graduate fellowship 
recipients and for meeting the institutional obligation 
described in subsection (e)(3)(B).
    ``(g) Restriction on Use of Funds.--An eligible institution 
that receives a grant under this section may not use grant 
funds for general operational overhead of the institution.

                      ``PART C--GENERAL PROVISIONS

``SEC. 261. LIMITATIONS.

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

                      TITLE 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:
            ``(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:
                    ``(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.
                            ``(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. PREDOMINANTLY BLACK INSTITUTIONS.

    ``(a) Purpose.--It is the purpose of this section to assist 
Predominantly Black Institutions in expanding educational 
opportunity through a program of Federal assistance.
    ``(b) Definitions.--In this section:
            ``(1) Eligible institution.--The term `eligible 
        institution' means an institution of higher education 
        that--
                    ``(A) has an enrollment of needy 
                undergraduate students;
                    ``(B) has an average educational and 
                general expenditure that is low, per full-time 
                equivalent undergraduate student, in comparison 
                with the average educational and general 
                expenditure per full-time equivalent 
                undergraduate student of institutions that 
                offer similar instruction, except that the 
                Secretary may apply the waiver requirements 
                described in section 392(b) to this 
                subparagraph in the same manner as the 
                Secretary applies the waiver requirements to 
                section 312(b)(1)(B);
                    ``(C) has an enrollment of undergraduate 
                students that is not less than 40 percent Black 
                American students;
                    ``(D) is legally authorized to provide, and 
                provides, within the State an educational 
                program for which the institution of higher 
                education awards a baccalaureate degree or, in 
                the case of a junior or community college, an 
                associate's degree;
                    ``(E) is accredited by a nationally 
                recognized accrediting agency or association 
                determined by the Secretary to be a reliable 
                authority as to the quality of training offered 
                or is, according to such an agency or 
                association, making reasonable progress toward 
                accreditation; and
                    ``(F) is not receiving assistance under 
                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.
    ``(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.
                    ``(B) Matching requirement.--In order to be 
                eligible to use grant funds in accordance with 
                subparagraph (A), a Predominantly Black 
                Institution shall provide matching funds from 
                non-Federal sources, in an amount equal to or 
                greater than the Federal funds used in 
                accordance with subparagraph (A), for the 
                establishment or increase of the endowment 
                fund.
                    ``(C) Comparability.--The provisions of 
                part C, regarding the establishment or increase 
                of an endowment fund, that the Secretary 
                determines are not inconsistent with this 
                subsection, shall apply to funds used under 
                subparagraph (A).
            ``(4) Limitation.--Not more than 50 percent of the 
        grant funds provided to a Predominantly Black 
        Institution under this section may be available for the 
        purpose of constructing or maintaining a classroom, 
        library, laboratory, or other instructional facility.
    ``(e) Allotments to Predominantly Black Institutions.--
            ``(1) Federal pell grant basis.--From the amounts 
        appropriated to carry out this section for any fiscal 
        year, the Secretary shall allot to each Predominantly 
        Black Institution having an application approved under 
        subsection (f) a sum that bears the same ratio to one-
        half of that amount as the number of Federal Pell Grant 
        recipients in attendance at such institution at the end 
        of the academic year preceding the beginning of that 
        fiscal year, bears to the total number of Federal Pell 
        Grant recipients at all such institutions at the end of 
        such academic year.
            ``(2) Graduates basis.--From the amounts 
        appropriated to carry out this section for any fiscal 
        year, the Secretary shall allot to each Predominantly 
        Black Institution having an application approved under 
        subsection (f) a sum that bears the same ratio to one-
        fourth of that amount as the number of graduates for 
        such academic year at such institution, bears to the 
        total number of graduates for such academic year at all 
        such institutions.
            ``(3) Graduates seeking a higher degree basis.--
        From the amounts appropriated to carry out this section 
        for any fiscal year, the Secretary shall allot to each 
        Predominantly Black Institution having an application 
        approved under subsection (f) a sum that bears the same 
        ratio to one-fourth of that amount as the percentage of 
        graduates from such institution who are admitted to and 
        in attendance at, not later than two years after 
        graduation with an associate's degree or a 
        baccalaureate degree, a baccalaureate degree-granting 
        institution or a graduate or professional school in a 
        degree program in disciplines in which Black American 
        students are underrepresented, bears to the percentage 
        of such graduates for all such institutions.
            ``(4) Minimum allotment.--
                    ``(A) In general.--Notwithstanding 
                paragraphs (1), (2), and (3), the amount 
                allotted to each Predominantly Black 
                Institution under this section may not be less 
                than $250,000.
                    ``(B) Insufficient amount.--If the amounts 
                appropriated to carry out this section for a 
                fiscal year are not sufficient to pay the 
                minimum allotment provided under subparagraph 
                (A) for the fiscal year, then the amount of 
                such minimum allotment shall be ratably 
                reduced. If additional sums become available 
                for such fiscal year, such reduced allotment 
                shall be increased on the same basis as the 
                allotment was reduced until the amount allotted 
                equals the minimum allotment required under 
                subparagraph (A).
            ``(5) Reallotment.--The amount of a Predominantly 
        Black Institution's allotment under paragraph (1), (2), 
        (3), or (4) for any fiscal year that the Secretary 
        determines will not be needed for such institution for 
        the period for which such allotment is available, shall 
        be available for reallotment to other Predominantly 
        Black Institutions in proportion to the original 
        allotments to such other institutions under this 
        section for such fiscal year. The Secretary shall 
        reallot such amounts from time to time, on such date 
        and during such period as the Secretary determines 
        appropriate.
    ``(f) Applications.--Each Predominantly Black Institution 
desiring a grant under this section shall submit an application 
to the Secretary at such time, in such manner, and containing 
or accompanied by such information as the Secretary may 
reasonably require.
    ``(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. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.

    ``(a) Program Authorized.--The Secretary shall provide 
grants and related assistance to Native American-serving, 
nontribal institutions to enable such institutions to improve 
and expand their capacity to serve Native Americans and low-
income individuals.
    ``(b) Definitions.--In this section:
            ``(1) Native american.--The term `Native American' 
        means an individual who is of a tribe, people, or 
        culture that is indigenous to the United States.
            ``(2) Native american-serving, nontribal 
        institution.--The term `Native American-serving, 
        nontribal institution' means an institution of higher 
        education, as defined in section 101(a), that, at the 
        time of application--
                    ``(A) is an eligible institution under 
                section 312(b);
                    ``(B) has an enrollment of undergraduate 
                students that is not less than 10 percent 
                Native American students; and
                    ``(C) is not a Tribal College or University 
                (as defined in section 316).
    ``(c) Authorized Activities.--
            ``(1) Types of activities authorized.--Grants 
        awarded under this section shall be used by Native 
        American-serving, nontribal institutions to assist such 
        institutions to plan, develop, undertake, and carry out 
        activities to improve and expand such institutions' 
        capacity to serve Native Americans and low-income 
        individuals.
            ``(2) Examples of authorized activities.--Such 
        programs may include--
                    ``(A) the purchase, rental, or lease of 
                scientific or laboratory equipment for 
                educational purposes, including instructional 
                and research purposes;
                    ``(B) renovation and improvement in 
                classroom, library, laboratory, and other 
                instructional facilities;
                    ``(C) support of faculty exchanges, and 
                faculty development and faculty fellowships to 
                assist faculty in attaining advanced degrees in 
                the faculty's field of instruction;
                    ``(D) curriculum development and academic 
                instruction;
                    ``(E) the purchase of library books, 
                periodicals, microfilm, and other educational 
                materials;
                    ``(F) funds and administrative management, 
                and acquisition of equipment for use in 
                strengthening funds management;
                    ``(G) the joint use of facilities such as 
                laboratories and libraries;
                    ``(H) academic tutoring and counseling 
                programs and student support services; and
                    ``(I) education or counseling services 
                designed to improve the financial and economic 
                literacy of students or the students' families.
    ``(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--
                            ``(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. ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC ISLANDER-SERVING 
                    INSTITUTIONS.

    ``(a) Program Authorized.--The Secretary shall provide 
grants and related assistance to Asian American and Native 
American Pacific Islander-serving institutions to enable such 
institutions to improve and expand their capacity to serve 
Asian Americans and Native American Pacific Islanders and low-
income individuals.
    ``(b) Definitions.--In this section:
            ``(1) Asian american.--The term `Asian American' 
        has the meaning given the term `Asian' in the Office of 
        Management and Budget's Standards for Maintaining, 
        Collecting, and Presenting Federal Data on Race and 
        Ethnicity as published on October 30, 1997 (62 Fed. 
        Reg. 58789).
            ``(2) Asian american and native american pacific 
        islander-serving institution.--The term `Asian American 
        and Native American Pacific Islander-serving 
        institution' means an institution of higher education 
        that--
                    ``(A) is an eligible institution under 
                section 312(b); and
                    ``(B) at the time of application, has an 
                enrollment of undergraduate students that is 
                not less than 10 percent students who are Asian 
                American or Native American Pacific Islander.
            ``(3) Native american pacific islander.--The term 
        `Native American Pacific Islander' means any descendant 
        of the aboriginal people of any island in the Pacific 
        Ocean that is a territory or possession of the United 
        States.
    ``(c) Authorized Activities.--
            ``(1) Types of activities authorized.--Grants 
        awarded under this section shall be used by Asian 
        American and Native American Pacific Islander-serving 
        institutions to assist such institutions to plan, 
        develop, undertake, and carry out activities to improve 
        and expand such institutions' capacity to serve Asian 
        Americans and Native American Pacific Islanders and 
        low-income individuals.
            ``(2) Examples of authorized activities.--Such 
        programs may include--
                    ``(A) purchase, rental, or lease of 
                scientific or laboratory equipment for 
                educational purposes, including instructional 
                and research purposes;
                    ``(B) renovation and improvement in 
                classroom, library, laboratory, and other 
                instructional facilities;
                    ``(C) support of faculty exchanges, and 
                faculty development and faculty fellowships to 
                assist in attaining advanced degrees in the 
                faculty's field of instruction;
                    ``(D) curriculum development and academic 
                instruction;
                    ``(E) purchase of library books, 
                periodicals, microfilm, and other educational 
                materials;
                    ``(F) funds and administrative management, 
                and acquisition of equipment for use in 
                strengthening funds management;
                    ``(G) joint use of facilities such as 
                laboratories and libraries;
                    ``(H) academic tutoring and counseling 
                programs and student support services;
                    ``(I) establishing community outreach 
                programs that will encourage elementary school 
                and secondary school students to develop the 
                academic skills and the interest to pursue 
                postsecondary education;
                    ``(J) establishing or improving an 
                endowment fund;
                    ``(K) academic instruction in disciplines 
                in which Asian Americans and Native American 
                Pacific Islanders are underrepresented;
                    ``(L) conducting research and data 
                collection for Asian American and Native 
                American Pacific Islander populations and 
                subpopulations;
                    ``(M) establishing partnerships with 
                community-based organizations serving Asian 
                Americans and Native American Pacific 
                Islanders; and
                    ``(N) education or counseling services 
                designed to improve the financial and economic 
                literacy of students or the students' families.
    ``(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 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--
            ``(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
                    (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''.
    (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) (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) 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 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) not later than 120 days after the date of 
        enactment of the Higher Education Opportunity Act, 
        shall submit to the authorizing committees a report on 
        the progress of the Department in implementing the 
        recommendations made by the Government Accountability 
        Office in October 2006 for improving the Historically 
        Black College and Universities Capital Financing 
        Program.''.
    (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. 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 pursue careers in science, technology, engineering, and 
mathematics.
    ``(b) Minimum Grant Amount.--A grant awarded to a 
partnership under this subpart shall be for an amount that is 
not less than $500,000.
    ``(c) Duration.--A grant awarded under this subpart shall 
be for a period of five years.
    ``(d) Non-Federal Matching Share Required.--A partnership 
receiving a grant under this subpart shall provide, from non-
Federal sources, in cash or in-kind, an amount equal to 50 
percent of the costs of the project supported by such grant.
    ``(e) Distribution of Grants.--In awarding grants under 
this subpart, the Secretary shall ensure that, to the maximum 
extent practicable, the projects funded under this subpart are 
located in diverse geographic regions of the United States.
    ``(f) Eligible Partnerships.--Notwithstanding the general 
eligibility provision in section 361, eligibility to receive 
grants under this subpart is limited to partnerships described 
in paragraph (5) of such section.

``SEC. 356. PROMOTION OF ENTRY INTO STEM FIELDS.

    ``(a) Authority To Contract, Subject to Appropriations.--
The Secretary is authorized to enter into a contract with a 
firm with a demonstrated record of success in advertising to 
implement a campaign to expand the population of qualified 
individuals in science, technology, engineering, and 
mathematics fields (referred to in this section as `STEM 
fields') by encouraging young Americans to enter such fields.
    ``(b) Design of Campaign.--The campaign under this section 
shall be designed to enhance the image of education and 
professions in the STEM fields and promote participation in the 
STEM fields, and may include--
            ``(1) monitoring trends in youths' attitudes toward 
        pursuing education and professions in the STEM fields 
        and their propensity toward entering the STEM fields;
            ``(2) determining what factors contribute to 
        encouraging and discouraging Americans from pursuing 
        study in STEM fields and entering the STEM fields 
        professionally;
            ``(3) determining what specific factors limit the 
        participation of groups currently underrepresented in 
        STEM fields, including Latinos, African-Americans, and 
        women; and
            ``(4) drawing from the market research performed 
        under this section and implementing an advertising 
        campaign to encourage young Americans to take up 
        studies in STEM fields, beginning at an early age.
    ``(c) Required Components.--The campaign under this section 
shall--
            ``(1) include components that focus tailored 
        messages on appropriate age groups, starting with 
        elementary school students; and
            ``(2) link participation in the STEM fields to the 
        concept of service to one's country, so that young 
        people will be encouraged to enter the STEM fields in 
        order fulfill the obligation to be of service to their 
        country.
    ``(d) Priority.--The campaign under this section shall hold 
as a high priority making specific appeals to Hispanic 
Americans, African Americans, Native Americans, students with 
disabilities, and women, who are currently underrepresented in 
the STEM fields, in order to increase their numbers in the STEM 
fields, and shall tailor recruitment efforts to each specific 
group.
    ``(e) Use of Variety of Media.--The campaign under this 
section shall make use of a variety of media, with an emphasis 
on television advertising, to reach its intended audience.
    ``(f) Teaching.--The campaign under this section shall 
include a narrowly focused effort to attract current 
professionals in the STEM fields, through advertising in 
mediums likely to reach that specific group, into teaching in a 
STEM field in elementary schools and secondary schools.

``SEC. 357. EVALUATION AND ACCOUNTABILITY PLAN.

    ``The Secretary shall develop an evaluation and 
accountability plan for projects funded under this subpart. 
Such plan shall include, if the Secretary determines that it is 
practical, an objective measure of the impact of such projects, 
such as a measure of whether underrepresented minority student 
enrollment in courses related to science, technology, 
engineering, and mathematics increases at the secondary and 
postsecondary levels.''.
    (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.''.

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) 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) 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) 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. 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
                            ``(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 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'';
            (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.
            ``(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.--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) 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) 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. 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 period during which each such student is 
eligible to receive a Federal Pell Grant under subsection (c).
    ``(B) 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) 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--
                                    ``(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
                    (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) 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 
        is amended by striking ``January 1'' and inserting 
        ``July 1''.
    (b) 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 is 
        amended by striking ``sections 2 through 9 of''.
            (2) 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 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.--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 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.--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, so 
                                as not to interfere with the 
                                timely awarding of grants for 
                                the applicable grant 
                                competition.
                            ``(iv) Error in peer review 
                        process.--
                                    ``(I) Referral to secondary 
                                review.--In the case of a peer 
                                review process error listed in 
                                clause (i)(I), if the Secretary 
                                determines that points were 
                                withheld for criteria not 
                                required in Federal statute, 
                                regulation, or guidance 
                                governing a program assisted 
                                under this chapter or the 
                                application for a grant for 
                                such program, or determines 
                                that information pertaining to 
                                selection criteria was wrongly 
                                determined missing from an 
                                application by a peer reviewer, 
                                then the Secretary shall refer 
                                the application to a secondary 
                                review panel.
                                    ``(II) Timely review; 
                                replacement score.--The 
                                secondary review panel 
                                described in subclause (I) 
                                shall conduct a secondary 
                                review in a timely fashion, and 
                                the score resulting from the 
                                secondary review shall replace 
                                the score from the initial peer 
                                review.
                                    ``(III) Composition of 
                                secondary review panel.--The 
                                secondary review panel shall be 
                                composed of reviewers each of 
                                whom--
                                            ``(aa) did not 
                                        review the application 
                                        in the original peer 
                                        review;
                                            ``(bb) is a member 
                                        of the cohort of peer 
                                        reviewers for the grant 
                                        program that is the 
                                        subject of such 
                                        secondary review; and
                                            ``(cc) to extent 
                                        practicable, has 
                                        conducted peer reviews 
                                        in not less than two 
                                        previous competitions 
                                        for the grant program 
                                        that is the subject of 
                                        such secondary review.
                                    ``(IV) Final score.--The 
                                final peer review score of an 
                                application subject to a 
                                secondary review under this 
                                clause shall be adjusted 
                                appropriately and quickly using 
                                the score awarded by the 
                                secondary review panel, so as 
                                not to interfere with the 
                                timely awarding of grants for 
                                the applicable grant 
                                competition.
                                    ``(V) Qualification for 
                                secondary review.--To qualify 
                                for a secondary review under 
                                this clause, an applicant shall 
                                have evidence of a scoring 
                                error and demonstrate that--
                                            ``(aa) points were 
                                        withheld for criteria 
                                        not required in 
                                        statute, regulation, or 
                                        guidance governing the 
                                        Federal TRIO programs 
                                        or the application for 
                                        a grant for such 
                                        programs; or
                                            ``(bb) information 
                                        pertaining to selection 
                                        criteria was wrongly 
                                        determined to be 
                                        missing from the 
                                        application.
                            ``(v) Finality.--
                                    ``(I) In general.--A 
                                determination by the Secretary 
                                under clause (i), (ii), or 
                                (iii) shall not be reviewable 
                                by any officer or employee of 
                                the Department.
                                    ``(II) Scoring.--The score 
                                awarded by a secondary review 
                                panel under clause (iv) shall 
                                not be reviewable by any 
                                officer or employee of the 
                                Department other than the 
                                Secretary.
                            ``(vi) Funding of applications with 
                        certain adjusted scores.--To the extent 
                        feasible based on the availability of 
                        appropriations, the Secretary shall 
                        fund applications with scores that are 
                        adjusted upward under clauses (ii), 
                        (iii), and (iv) to equal or exceed the 
                        minimum cut off score for the 
                        applicable grant competition.'';
            (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
                            ``(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;
                            ``(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--
                    ``(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--
                    ``(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;
            ``(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))--
                    (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);
            (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.'';
            (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;
                    (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--
                    ``(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. The 
                evaluation of the programs and projects 
                assisted under section 402C shall be 
                implemented not later than June 30, 2010.
                    ``(B) Content of upward bound evaluation.--
                The evaluation of the programs and projects 
                assisted under section 402C that is described 
                in subparagraph (A) shall examine the 
                characteristics of the students who benefit 
                most from the Upward Bound program under 
                section 402C and the characteristics of the 
                programs and projects that most benefit 
                students.
                    ``(C) Implementation.--Each evaluation 
                described in this paragraph shall be 
                implemented in accordance with the requirements 
                of this section.
            ``(2) Practices.--
                    ``(A) In general.--The evaluations 
                described in paragraph (1) shall identify 
                institutional, community, and program or 
                project practices that are effective in--
                            ``(i) enhancing the access of low-
                        income individuals and first-generation 
                        college students to postsecondary 
                        education;
                            ``(ii) the preparation of such 
                        individuals and students for 
                        postsecondary education; and
                            ``(iii) fostering the success of 
                        the individuals and students in 
                        postsecondary education.
                    ``(B) Primary purpose.--Any evaluation 
                conducted under this chapter shall have as the 
                evaluation's primary purpose the identification 
                of particular practices that further the 
                achievement of the outcome criteria determined 
                under section 402A(f)(4).
                    ``(C) Dissemination and use of evaluation 
                findings.--The Secretary shall disseminate to 
                eligible entities and make available to the 
                public the practices identified under 
                subparagraph (B). The practices may be used by 
                eligible entities that receive assistance under 
                this chapter after the dissemination.
            ``(3) Special rule related to evaluation 
        participation.--The Secretary shall not require an 
        eligible entity, as a condition for receiving, or that 
        receives, assistance under any program or project under 
        this chapter to participate in an evaluation under this 
        section that--
                    ``(A) requires the eligible entity to 
                recruit additional students beyond those the 
                program or project would normally recruit; or
                    ``(B) results in the denial of services for 
                an eligible student under the program or 
                project.
            ``(4) Consideration.--When designing an evaluation 
        under this subsection, the Secretary shall continue to 
        consider--
                    ``(A) the burden placed on the program 
                participants or the eligible entity; and
                    ``(B) whether the evaluation meets 
                generally accepted standards of institutional 
                review boards.''.

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
                    ``(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)--
                            (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 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
            (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.
            ``(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 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.
            ``(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.'';
            (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 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 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.
                            ``(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.--
                    ``(A) Submission.--A State that desires to 
                receive an allotment under this section on 
                behalf of a partnership described in paragraph 
                (3) shall submit an application to the 
                Secretary at such time, in such manner, and 
                containing such information as the Secretary 
                may require.
                    ``(B) Content.--An application submitted 
                under subparagraph (A) shall include the 
                following:
                            ``(i) A description of the State's 
                        plan for using the allotted funds.
                            ``(ii) An assurance that the State 
                        will provide matching funds, in cash or 
                        in kind, from State, institutional, 
                        philanthropic, or private funds, of not 
                        less than 33.33 percent of the cost of 
                        carrying out the activities under 
                        subsection (d). The State shall specify 
                        the methods by which matching funds 
                        will be paid. A State that uses non-
                        Federal funds to create or expand 
                        partnerships with entities described in 
                        subsection (a)(1), in which such 
                        entities match State funds for student 
                        scholarships, may apply such matching 
                        funds from such entities toward 
                        fulfilling the State's matching 
                        obligation under this clause.
                            ``(iii) An assurance that the State 
                        will use funds provided under this 
                        section to supplement, and not 
                        supplant, Federal and State funds 
                        available for carrying out the 
                        activities under this title.
                            ``(iv) An assurance that early 
                        information and intervention, 
                        mentoring, or outreach programs exist 
                        within the State or that there is a 
                        plan to make such programs widely 
                        available.
                            ``(v) A description of the 
                        organizational structure that the State 
                        has in place to administer the 
                        activities under subsection (d), 
                        including a description of how the 
                        State will compile information on 
                        degree completion of students receiving 
                        grants under this section.
                            ``(vi) A description of the steps 
                        the State will take to ensure that 
                        students who receive grants under this 
                        section persist to degree completion.
                            ``(vii) An assurance that the State 
                        has a method in place, such as 
                        acceptance of the automatic zero 
                        expected family contribution 
                        determination described in section 
                        479(c), to identify eligible low-income 
                        students and award State grant aid to 
                        such students.
                            ``(viii) An assurance that the 
                        State will provide notification to 
                        eligible low-income students that 
                        grants under this section are--
                                    ``(I) Leveraging 
                                Educational Assistance 
                                Partnership Grants; and
                                    ``(II) funded by the 
                                Federal Government and the 
                                State, and, where applicable, 
                                other contributing partners.
            ``(2) State agency.--The State agency that submits 
        an application for a State under section 415C(a) shall 
        be the same State agency that submits an application 
        under paragraph (1) for such State.
            ``(3) Partnership.--In applying for an allotment 
        under this section, the State agency shall apply for 
        the allotment in partnership with--
                    ``(A) not less than one public and one 
                private degree-granting institution of higher 
                education that are located in the State, if 
                applicable;
                    ``(B) new or existing early information and 
                intervention, mentoring, or outreach programs 
                located in the State; and
                    ``(C) not less than one--
                            ``(i) philanthropic organization 
                        located in, or that provides funding 
                        in, the State; or
                            ``(ii) private corporation located 
                        in, or that does business in, the 
                        State.
            ``(4) Roles of partners.--
                    ``(A) State agency.--A State agency that is 
                in a partnership receiving an allotment under 
                this section--
                            ``(i) shall--
                                    ``(I) serve as the primary 
                                administrative unit for the 
                                partnership;
                                    ``(II) provide or 
                                coordinate non-Federal share 
                                funds, and coordinate 
                                activities among partners;
                                    ``(III) encourage each 
                                institution of higher education 
                                in the State to participate in 
                                the partnership;
                                    ``(IV) make determinations 
                                and early notifications of 
                                assistance as described under 
                                subsection (d)(2); and
                                    ``(V) annually report to 
                                the Secretary on the 
                                partnership's progress in 
                                meeting the purpose of this 
                                section; and
                            ``(ii) may provide early 
                        information and intervention, 
                        mentoring, or outreach programs.
                    ``(B) Degree-granting institutions of 
                higher education.--A degree-granting 
                institution of higher education that is in a 
                partnership receiving an allotment under this 
                section--
                            ``(i) shall--
                                    ``(I) recruit and admit 
                                participating qualified 
                                students and provide such 
                                additional institutional grant 
                                aid to participating students 
                                as agreed to with the State 
                                agency;
                                    ``(II) provide support 
                                services to students who 
                                receive grants for access and 
                                persistence under this section 
                                and are enrolled at such 
                                institution; and
                                    ``(III) assist the State in 
                                the identification of eligible 
                                students and the dissemination 
                                of early notifications of 
                                assistance as agreed to with 
                                the State agency; and
                            ``(ii) may provide funding for 
                        early information and intervention, 
                        mentoring, or outreach programs or 
                        provide such services directly.
                    ``(C) Programs.--An early information and 
                intervention, mentoring, or outreach program 
                that is in a partnership receiving an allotment 
                under this section shall provide direct 
                services, support, and information to 
                participating students.
                    ``(D) Philanthropic organization or private 
                corporation.--A philanthropic organization or 
                private corporation that is in a partnership 
                receiving an allotment under this section shall 
                provide funds for grants for access and 
                persistence for participating students, or 
                provide funds or support for early information 
                and intervention, mentoring, or outreach 
                programs.
    ``(d) Authorized Activities.--
            ``(1) In general.--
                    ``(A) Establishment of partnership.--Each 
                State receiving an allotment under this section 
                shall use the funds to establish a partnership 
                to award grants for access and persistence to 
                eligible low-income students in order to 
                increase the amount of financial assistance 
                such students receive under this subpart for 
                undergraduate education expenses.
                    ``(B) Amount of grants.--The amount of a 
                grant for access and persistence awarded by a 
                State to a student under this section shall be 
                not less than--
                            ``(i) the average undergraduate 
                        tuition and mandatory fees at the 
                        public institutions of higher education 
                        in the State where the student resides 
                        that are of the same type of 
                        institution as the institution of 
                        higher education the student attends; 
                        minus
                            ``(ii) other Federal and State aid 
                        the student receives.
                    ``(C) Special rules.--
                            ``(i) Partnership institutions.--A 
                        State receiving an allotment under this 
                        section may restrict the use of grants 
                        for access and persistence under this 
                        section by awarding the grants only to 
                        students attending institutions of 
                        higher education that are participating 
                        in the partnership.
                            ``(ii) Out-of-state institutions.--
                        If a State provides grants through 
                        another program under this subpart to 
                        students attending institutions of 
                        higher education located in another 
                        State, grants awarded under this 
                        section may be used at institutions of 
                        higher education located in another 
                        State.
            ``(2) Early notification.--
                    ``(A) In general.--Each State receiving an 
                allotment under this section shall annually 
                notify low-income students in grades seven 
                through 12 in the State, and their families, of 
                their potential eligibility for student 
                financial assistance, including an access and 
                persistence grant, to attend an institution of 
                higher education.
                    ``(B) Content of notice.--The notice under 
                subparagraph (A)--
                            ``(i) shall include--
                                    ``(I) information about 
                                early information and 
                                intervention, mentoring, or 
                                outreach programs available to 
                                the student;
                                    ``(II) information that a 
                                student's eligibility for a 
                                grant for access and 
                                persistence is enhanced through 
                                participation in an early 
                                information and intervention, 
                                mentoring, or outreach program;
                                    ``(III) an explanation that 
                                student and family eligibility 
                                for, and participation in, 
                                other Federal means-tested 
                                programs may indicate 
                                eligibility for a grant for 
                                access and persistence and 
                                other student aid programs;
                                    ``(IV) a nonbinding 
                                estimate of the total amount of 
                                financial aid that a low-income 
                                student with a similar income 
                                level may expect to receive, 
                                including an estimate of the 
                                amount of a grant for access 
                                and persistence and an estimate 
                                of the amount of grants, loans, 
                                and all other available types 
                                of aid from the major Federal 
                                and State financial aid 
                                programs;
                                    ``(V) an explanation that 
                                in order to be eligible for a 
                                grant for access and 
                                persistence, at a minimum, a 
                                student shall--
                                            ``(aa) meet the 
                                        requirement under 
                                        paragraph (3);
                                            ``(bb) graduate 
                                        from secondary school; 
                                        and
                                            ``(cc) enroll at an 
                                        institution of higher 
                                        education--
                                            ``(AA) that is a 
                                        partner in the 
                                        partnership; or
                                            ``(BB) with respect 
                                        to which attendance is 
                                        permitted under 
                                        subsection 
                                        (d)(1)(C)(ii);
                                    ``(VI) information on any 
                                additional requirements (such 
                                as a student pledge detailing 
                                student responsibilities) that 
                                the State may impose for 
                                receipt of a grant for access 
                                and persistence under this 
                                section; and
                                    ``(VII) instructions on how 
                                to apply for a grant for access 
                                and persistence and an 
                                explanation that a student is 
                                required to file a Free 
                                Application for Federal Student 
                                Aid authorized under section 
                                483(a) to be eligible for such 
                                grant and assistance from other 
                                Federal and State financial aid 
                                programs; and
                            ``(ii) may include a disclaimer 
                        that grant awards for access and 
                        persistence are contingent on--
                                    ``(I) a determination of 
                                the student's financial 
                                eligibility at the time of the 
                                student's enrollment at an 
                                institution of higher education 
                                that is a partner in the 
                                partnership or qualifies under 
                                subsection (d)(1)(C)(ii);
                                    ``(II) annual Federal and 
                                State spending for higher 
                                education; and
                                    ``(III) other aid received 
                                by the student at the time of 
                                the student's enrollment at 
                                such institution of higher 
                                education.
            ``(3) Eligibility.--In determining which students 
        are eligible to receive grants for access and 
        persistence, the State shall ensure that each such 
        student complies with the following subparagraph (A) or 
        (B):
                    ``(A) Meets not less than two of the 
                following criteria, with priority given to 
                students meeting all of the following criteria:
                            ``(i) Has an expected family 
                        contribution equal to zero, as 
                        determined under part F, or a 
                        comparable alternative based upon the 
                        State's approved criteria in section 
                        415C(b)(4).
                            ``(ii) Qualifies for the State's 
                        maximum undergraduate award, as 
                        authorized under section 415C(b).
                            ``(iii) Is participating in, or has 
                        participated in, a Federal, State, 
                        institutional, or community early 
                        information and intervention, 
                        mentoring, or outreach program, as 
                        recognized by the State agency 
                        administering activities under this 
                        section.
                    ``(B) Is receiving, or has received, a 
                grant for access and persistence under this 
                section, in accordance with paragraph (5).
            ``(4) Grant award.--Once a student, including those 
        students who have received early notification under 
        paragraph (2) from the State, applies for admission to 
        an institution that is a partner in the partnership, 
        files a Free Application for Federal Student Aid and 
        any related State form, and is determined eligible by 
        the State under paragraph (3), the State shall--
                    ``(A) issue the student a preliminary award 
                certificate for a grant for access and 
                persistence with estimated award amounts; and
                    ``(B) inform the student that payment of 
                the grant for access and persistence award 
                amounts is subject to certification of 
                enrollment and award eligibility by the 
                institution of higher education.
            ``(5) Duration of award.--An eligible student who 
        receives a grant for access and persistence under this 
        section shall receive such grant award for each year of 
        such student's undergraduate education in which the 
        student remains eligible for assistance under this 
        title, including pursuant to section 484(c), and 
        remains financially eligible as determined by the 
        State, except that the State may impose reasonable time 
        limits to degree completion.
    ``(e) Administrative Cost Allowance.--A State that receives 
an allotment under this section may reserve not more than two 
percent of the funds made available annually through the 
allotment for State administrative functions required to carry 
out this section.
    ``(f) Statutory and Regulatory Relief for Institutions of 
Higher Education.--The Secretary may grant, upon the request of 
an institution of higher education that is in a partnership 
described in subsection (b)(2)(B)(ii) and that receives an 
allotment under this section, a waiver for such institution 
from statutory or regulatory requirements that inhibit the 
ability of the institution to successfully and efficiently 
participate in the activities of the partnership.
    ``(g) Applicability Rule.--The provisions of this subpart 
that are not inconsistent with this section shall apply to the 
program authorized by this section.
    ``(h) Maintenance of Effort Requirement.--Each State 
receiving an allotment under this section for a fiscal year 
shall provide the Secretary with an assurance that the 
aggregate amount expended per student or the aggregate 
expenditures by the State, from funds derived from non-Federal 
sources, for the authorized activities described in subsection 
(d) for the preceding fiscal year were not less than the amount 
expended per student or the aggregate expenditure by the State 
for the activities for the second preceding fiscal year.
    ``(i) Special Rule.--Notwithstanding subsection (h), for 
purposes of determining a State's share of the cost of the 
authorized activities described in subsection (d), the State 
shall consider only those expenditures from non-Federal sources 
that exceed the State's total expenditures for need-based 
grants, scholarships, and work-study assistance for fiscal year 
1999 (including any such assistance provided under this 
subpart).
    ``(j) Continuation and Transition.--For the two-year period 
that begins on the date of enactment of the Higher Education 
Opportunity Act, the Secretary shall continue to award grants 
under section 415E of the Higher Education Act of 1965 as such 
section existed on the day before the date of enactment of the 
Higher Education Opportunity Act to States that choose to apply 
for grants under such predecessor section.
    ``(k) Reports.--Not later than three years after the date 
of enactment of the Higher Education Opportunity Act and 
annually thereafter, the Secretary shall submit a report 
describing the activities and the impact of the partnerships 
under this section to the authorizing committees.''.

SEC. 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
                                    (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
            ``(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.--The Secretary shall--
            ``(1) annually collect data on persons receiving 
        services authorized under this subpart regarding such 
        persons' rates of secondary school graduation, entrance 
        into postsecondary education, and completion of 
        postsecondary education, as applicable;
            ``(2) not less often than once every two years, 
        prepare and submit to the authorizing committees a 
        report based on the most recently available data under 
        paragraph (1); and
            ``(3) make such report available to the public.''; 
        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:
            ``(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.--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.--
            ``(1) Change of high-need designation.--If a 
        recipient of an initial grant under this subpart has 
        acquired an academic degree, or expertise, in a field 
        that was, at the time of the recipient's application 
        for that grant, designated as high need in accordance 
        with subsection (b)(1)(C)(vii), but is no longer so 
        designated, the grant recipient may fulfill the service 
        obligation described in subsection (b)(1) by teaching 
        in that field.
            ``(2) Extenuating circumstances.--The Secretary 
        shall establish, by regulation, categories of 
        extenuating circumstances under which a recipient of a 
        grant under this subpart who is unable to fulfill all 
        or part of the recipient's service obligation may be 
        excused from fulfilling that portion of the service 
        obligation.''; and
            (2) by adding at the end the following new section:

``SEC. 420P. 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) 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--
                                    ``(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) 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;
                                    ``(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;
                    (B) in clause (iv), by striking the period 
                at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(v) 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) 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 
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) 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--
                            ``(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.--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) 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
                            ``(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) 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--
                                            ``(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) 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)--
                                    (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) 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.--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) 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)--
                    (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) 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:

``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.
            ``(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
                    ``(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 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.
            ``(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--
                    ``(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. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.

    ``(a) Purpose.--The purpose of this section is to encourage 
qualified individuals to enter and continue employment as civil 
legal assistance attorneys.
    ``(b) Definitions.--In this section:
            ``(1) Civil legal assistance attorney.--The term 
        `civil legal assistance attorney' means an attorney 
        who--
                    ``(A) is a full-time employee of--
                            ``(i) a nonprofit organization that 
                        provides legal assistance with respect 
                        to civil matters to low-income 
                        individuals without a fee; or
                            ``(ii) a protection and advocacy 
                        system or client assistance program 
                        that provides legal assistance with 
                        respect to civil matters and receives 
                        funding under--
                                    ``(I) subtitle C of title I 
                                of the Developmental 
                                Disabilities Assistance and 
                                Bill of Rights Act of 2000 (42 
                                U.S.C. 15041 et seq.);
                                    ``(II) section 112 or 509 
                                of the Rehabilitation Act of 
                                1973 (29 U.S.C. 732, 794e);
                                    ``(III) part A of title I 
                                of the Protection and Advocacy 
                                for Individuals with Mental 
                                Illness Act (42 U.S.C. 10801 et 
                                seq.);
                                    ``(IV) section 5 of the 
                                Assistive Technology Act of 
                                1998 (29 U.S.C. 3004);
                                    ``(V) section 1150 of the 
                                Social Security Act (42 U.S.C. 
                                1320b-21);
                                    ``(VI) section 1253 of the 
                                Public Health Service Act (42 
                                U.S.C. 300d-53); or
                                    ``(VII) section 291 of the 
                                Help America Vote Act of 2002 
                                (42 U.S.C. 15461);
                    ``(B) as such employee, provides civil 
                legal assistance as described in subparagraph 
                (A) on a full-time basis; and
                    ``(C) is continually licensed to practice 
                law.
            ``(2) Student loan.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `student loan' 
                means--
                            ``(i) subject to clause (ii), a 
                        loan made, insured, or guaranteed under 
                        this part, part D, or part E; 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;
                    ``(C) if the borrower is required to repay 
                an amount to the Secretary under subparagraph 
                (B) and fails to repay such amount, a sum equal 
                to that amount shall be recoverable by the 
                Federal Government from the employee by such 
                methods as are provided by law for the recovery 
                of amounts owed to the Federal Government;
                    ``(D) the Secretary may waive, in whole or 
                in part, a right of recovery under this 
                subsection if it is shown that recovery would 
                be contrary to the public interest; and
                    ``(E) the Secretary shall make student loan 
                payments under this section for the period of 
                the agreement, subject to the availability of 
                appropriations.
            ``(2) Repayments.--
                    ``(A) In general.--Any amount repaid by, or 
                recovered from, an individual under this 
                subsection shall be credited to the 
                appropriation account from which the amount 
                involved was originally paid.
                    ``(B) Merger.--Any amount credited under 
                subparagraph (A) shall be merged with other 
                sums in such account and shall be available for 
                the same purposes and period, and subject to 
                the same limitations, if any, as the sums with 
                which the amount was merged.
            ``(3) Limitations.--
                    ``(A) Student loan payment amount.--Student 
                loan repayments made by the Secretary under 
                this section shall be made subject to such 
                terms, limitations, or conditions as may be 
                mutually agreed upon by the borrower and the 
                Secretary in an agreement under paragraph (1), 
                except that the amount paid by the Secretary 
                under this section shall not exceed--
                            ``(i) $6,000 for any borrower in 
                        any calendar year; or
                            ``(ii) an aggregate total of 
                        $40,000 in the case of any borrower.
                    ``(B) Beginning of payments.--Nothing in 
                this section shall authorize the Secretary to 
                pay any amount to reimburse a borrower for any 
                repayments made by such borrower prior to the 
                date on which the Secretary entered into an 
                agreement with the borrower under this 
                subsection.
    ``(e) Additional Agreements.--
            ``(1) In general.--On completion of the required 
        period of service under an agreement under subsection 
        (d), the borrower and the Secretary may, subject to 
        paragraph (2), enter into an additional agreement in 
        accordance with subsection (d).
            ``(2) Term.--An agreement entered into under 
        paragraph (1) may require the borrower to remain 
        employed as a civil legal assistance attorney for less 
        than three years.
    ``(f) Award Basis; Priority.--
            ``(1) Award basis.--Subject to paragraph (2), the 
        Secretary shall provide repayment benefits under this 
        section on a first-come, first-served basis, and 
        subject to the availability of appropriations.
            ``(2) Priority.--The Secretary shall give priority 
        in providing repayment benefits under this section in 
        any fiscal year to a borrower who--
                    ``(A) has practiced law for five years or 
                less and, for not less than 90 percent of the 
                time in such practice, has served as a civil 
                legal assistance attorney;
                    ``(B) received repayment benefits under 
                this section during the preceding fiscal year; 
                and
                    ``(C) has completed less than three years 
                of the first required period of service 
                specified for the borrower in an agreement 
                entered into under subsection (d).
    ``(g) Ineligibility for Double Benefits.--No borrower may, 
for the same service, receive a reduction of loan obligations 
under both this section and section 428K or 455(m).
    ``(h) Regulations.--The Secretary is authorized to issue 
such regulations as may be necessary to carry out this section.
    ``(i) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$10,000,000 for fiscal year 2009 and such sums as may be 
necessary for each of the five succeeding fiscal years.''.

SEC. 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)--
                    (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 (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''.

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;
            ``(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. The disclosure required by this subsection shall be 
made not less than 30 days nor more than 150 days before the 
first payment on the loan is due from the borrower. The 
disclosure shall include--
            ``(1) the name of the eligible lender or loan 
        servicer, and the address to which communications and 
        payments should be sent;
            ``(2) the scheduled date upon which the repayment 
        period is to begin or the deferment period under 
        section 428B(d)(1) is to end, as applicable;
            ``(3) the estimated balance owed by the borrower on 
        the loan or loans covered by the disclosure (including, 
        if applicable, the estimated amount of interest to be 
        capitalized) as of the scheduled date on which the 
        repayment period is to begin or the deferment period 
        under 428B(d)(1) is to end, as applicable;
            ``(4) the stated interest rate on the loan or 
        loans, or the combined interest rate of loans with 
        different stated interest rates;
            ``(5) information on loan repayment benefits 
        offered for the loan or loans, including--
                    ``(A) whether the lender offers any 
                benefits that are contingent on the repayment 
                behavior of the borrower, such as--
                            ``(i) a reduction in interest rate 
                        if the borrower repays the loan by 
                        automatic payroll or checking account 
                        deduction;
                            ``(ii) a reduction in interest rate 
                        if the borrower makes a specified 
                        number of on-time payments; and
                            ``(iii) other loan repayment 
                        benefits for which the borrower could 
                        be eligible that would reduce the 
                        amount of repayment or the length of 
                        the repayment period;
                    ``(B) if the lender provides a loan 
                repayment benefit--
                            ``(i) any limitations on such 
                        benefit;
                            ``(ii) explicit information on the 
                        reasons a borrower may lose eligibility 
                        for such benefit;
                            ``(iii) for a loan repayment 
                        benefit that reduces the borrower's 
                        interest rate--
                                    ``(I) examples of the 
                                impact the interest rate 
                                reduction would have on the 
                                length of the borrower's 
                                repayment period and the amount 
                                of repayment; and
                                    ``(II) upon the request of 
                                the borrower, the effect the 
                                reduction in interest rate 
                                would have with respect to the 
                                borrower's payoff amount and 
                                time for repayment; and
                            ``(iv) whether and how the borrower 
                        can regain eligibility for a benefit if 
                        a borrower loses a benefit;
            ``(6) a description of all the repayment plans that 
        are available to the borrower and a statement that the 
        borrower may change from one plan to another during the 
        period of repayment;
            ``(7) the repayment schedule for all loans covered 
        by the disclosure, including--
                    ``(A) the date the first installment is 
                due; and
                    ``(B) the number, amount, and frequency of 
                required payments, which shall be based on a 
                standard repayment plan or, in the case of a 
                borrower who has selected another repayment 
                plan, on the repayment plan selected by the 
                borrower;
            ``(8) an explanation of any special options the 
        borrower may have for loan consolidation or other 
        refinancing of the loan and of the availability and 
        terms of such other options;
            ``(9) except as provided in subsection (d)--
                    ``(A) the projected total of interest 
                charges which the borrower will pay on the loan 
                or loans, assuming that the borrower makes 
                payments exactly in accordance with the 
                repayment schedule; and
                    ``(B) if the borrower has already paid 
                interest on the loan or loans, the amount of 
                interest paid;
            ``(10) the nature of any fees which may accrue or 
        be charged to the borrower during the repayment period;
            ``(11) a statement that the borrower has the right 
        to prepay all or part of the loan or loans covered by 
        the disclosure at any time without penalty;
            ``(12) a description of the options by which the 
        borrower may avoid or be removed from default, 
        including any relevant fees associated with such 
        options; and
            ``(13) additional resources, including nonprofit 
        organizations, advocates, and counselors (including the 
        Student Loan Ombudsman of the Department) of which the 
        lender is aware, where borrowers may receive advice and 
        assistance on loan repayment.
    ``(c) Separate Notification.--Each eligible lender shall, 
at the time such lender notifies a borrower of approval of a 
loan which is insured or guaranteed under this part, provide 
the borrower with a separate notification which summarizes, in 
simple and understandable terms, the rights and 
responsibilities of the borrower with respect to the loan, 
including a statement of the consequences of defaulting on the 
loan and a statement that each borrower who defaults will be 
reported to a consumer reporting agency. The requirement of 
this subsection shall be in addition to the information 
required by subsection (a) of this section.
    ``(d) Special Disclosure Rules on PLUS Loans, and 
Unsubsidized Loans.--Loans made under sections 428B and 428H 
shall not be subject to the disclosure of projected monthly 
payment amounts required under subsection (b)(7) if the lender, 
in lieu of such disclosure, provides the borrower with sample 
projections of monthly repayment amounts, assuming different 
levels of borrowing and interest accruals resulting from 
capitalization of interest while the borrower, or the student 
on whose behalf the loan is made, is in school, in simple and 
understandable terms. Such sample projections shall disclose 
the cost to the borrower of--
            ``(1) capitalizing the interest; and
            ``(2) paying the interest as the interest accrues.
    ``(e) Required Disclosures During Repayment.--
            ``(1) Pertinent information about a loan provided 
        on a periodic basis.--Each eligible lender shall 
        provide the borrower of a loan made, insured, or 
        guaranteed under this part with a bill or statement (as 
        applicable) that corresponds to each payment 
        installment time period in which a payment is due and 
        that includes, in simple and understandable terms--
                    ``(A) the original principal amount of the 
                borrower's loan;
                    ``(B) the borrower's current balance, as of 
                the time of the bill or statement, as 
                applicable;
                    ``(C) the interest rate on such loan;
                    ``(D) the total amount the borrower has 
                paid in interest on the loan;
                    ``(E) the aggregate amount the borrower has 
                paid for the loan, including the amount the 
                borrower has paid in interest, the amount the 
                borrower has paid in fees, and the amount the 
                borrower has paid against the balance;
                    ``(F) a description of each fee the 
                borrower has been charged for the most recently 
                preceding installment time period;
                    ``(G) the date by which the borrower needs 
                to make a payment in order to avoid additional 
                fees and the amount of such payment and the 
                amount of such fees;
                    ``(H) the lender's or loan servicer's 
                address and toll-free phone number for payment 
                and billing error purposes; and
                    ``(I) a reminder that the borrower has the 
                option to change repayment plans, a list of the 
                names of the repayment plans available to the 
                borrower, a link to the appropriate page of the 
                Department's website to obtain a more detailed 
                description of the repayment plans, and 
                directions for the borrower to request a change 
                in repayment plan.
            ``(2) Information provided to a borrower having 
        difficulty making payments.--Each eligible lender shall 
        provide to a borrower who has notified the lender that 
        the borrower is having difficulty making payments on a 
        loan made, insured, or guaranteed under this part with 
        the following information in simple and understandable 
        terms:
                    ``(A) A description of the repayment plans 
                available to the borrower, including how the 
                borrower should request a change in repayment 
                plan.
                    ``(B) A description of the requirements for 
                obtaining forbearance on a loan, including 
                expected costs associated with forbearance.
                    ``(C) A description of the options 
                available to the borrower to avoid defaulting 
                on the loan, and any relevant fees or costs 
                associated with such options.
            ``(3) Required disclosures during delinquency.--
        Each eligible lender shall provide to a borrower who is 
        60 days delinquent in making payments on a loan made, 
        insured, or guaranteed under this part with a notice, 
        in simple and understandable terms, of the following:
                    ``(A) The date on which the loan will 
                default if no payment is made.
                    ``(B) The minimum payment the borrower must 
                make to avoid default.
                    ``(C) A description of the options 
                available to the borrower to avoid default, and 
                any relevant fees or costs associated with such 
                options, including a description of deferment 
                and forbearance and the requirements to obtain 
                each.
                    ``(D) Discharge options to which the 
                borrower may be entitled.
                    ``(E) Additional resources, including 
                nonprofit organizations, advocates, and 
                counselors (including the Student Loan 
                Ombudsman of the Department), of which the 
                lender is aware, where the borrower can receive 
                advice and assistance on loan repayment.
    ``(f) Cost of Disclosure and Consequences of 
Nondisclosure.--
            ``(1) No cost to borrowers.--The information 
        required under this section shall be available without 
        cost to the borrower.
            ``(2) Consequences of nondisclosure.--The failure 
        of an eligible lender to provide information as 
        required by this section shall not--
                    ``(A) relieve a borrower of the obligation 
                to repay a loan in accordance with the loan's 
                terms; or
                    ``(B) provide a basis for a claim for civil 
                damages.
            ``(3) Rule of construction.--Nothing in this 
        section shall be construed as subjecting the lender to 
        the Truth in Lending Act with regard to loans made 
        under this part.
            ``(4) Actions by the secretary.--The Secretary may 
        limit, suspend, or terminate the continued 
        participation of an eligible lender in making loans 
        under this part for failure by that lender to comply 
        with this section.''.
    (b) 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. 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;
            ``(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.--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.--
                            ``(i) In general.--An institution 
                        whose cohort default rate is equal to 
                        or greater than the threshold 
                        percentage specified in paragraph 
                        (2)(B)(iv) in any fiscal year shall 
                        establish a default prevention task 
                        force to prepare a plan to--
                                    ``(I) identify the factors 
                                causing the institution's 
                                cohort default rate to exceed 
                                such threshold;
                                    ``(II) establish measurable 
                                objectives and the steps to be 
                                taken to improve the 
                                institution's cohort default 
                                rate; and
                                    ``(III) specify actions 
                                that the institution can take 
                                to improve student loan 
                                repayment, including 
                                appropriate counseling 
                                regarding loan repayment 
                                options.
                            ``(ii) Technical assistance.--Each 
                        institution subject to this 
                        subparagraph shall submit the plan 
                        under clause (i) to the Secretary, who 
                        shall review the plan and offer 
                        technical assistance to the institution 
                        to promote improved student loan 
                        repayment.
                    ``(B) Second consecutive year.--
                            ``(i) In general.--An institution 
                        whose cohort default rate is equal to 
                        or greater than the threshold 
                        percentage specified in paragraph 
                        (2)(B)(iv) for two consecutive fiscal 
                        years, shall require the institution's 
                        default prevention task force 
                        established under subparagraph (A) to 
                        review and revise the plan required 
                        under such subparagraph, and shall 
                        submit such revised plan to the 
                        Secretary.
                            ``(ii) Review by the secretary.--
                        The Secretary shall review each revised 
                        plan submitted in accordance with this 
                        subparagraph, and may direct that such 
                        plan be amended to include actions, 
                        with measurable objectives, that the 
                        Secretary determines, based on 
                        available data and analyses of student 
                        loan defaults, will promote student 
                        loan repayment.''; and
                    (F) in paragraph (8)(A) (as redesignated by 
                subparagraph (B)) by striking ``0.0375'' and 
                inserting ``0.0625''.
            (2) 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 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.''.
    (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.--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) The Secretary shall publish not less often 
        than once every fiscal year a report showing cohort 
        default data and life of cohort default rates for each 
        category of institution, including: (i) four-year 
        public institutions; (ii) four-year private nonprofit 
        institutions; (iii) two-year public institutions; (iv) 
        two-year private nonprofit institutions; (v) four-year 
        proprietary institutions; (vi) two-year proprietary 
        institutions; and (vii) less than two-year proprietary 
        institutions. For purposes of this subparagraph, for 
        any fiscal year in which one or more current and former 
        students at an institution enter repayment on loans 
        under section 428, 428B, or 428H, received for 
        attendance at the institution, the Secretary shall 
        publish the percentage of those current and former 
        students who enter repayment on such loans (or on the 
        portion of a loan made under section 428C that is used 
        to repay any such loans) received for attendance at the 
        institution in that fiscal year who default before the 
        end of each succeeding fiscal year.''.
            (2) 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
                            ``(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) 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
                    (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--
                            ``(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;
                    ``(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) beginning on July 1, 2009, an income-
                based repayment plan that enables borrowers who 
                have a partial financial hardship to make a 
                lower monthly payment in accordance with 
                section 493C, except that the plan described in 
                this subparagraph shall not be available to the 
                borrower of a Federal Direct PLUS Loan made on 
                behalf of a dependent student or a Federal 
                Direct Consolidation Loan, if the proceeds of 
                such loan were used to discharge the liability 
                on such Federal Direct PLUS Loan or a loan 
                under section 428B made on behalf of a 
                dependent student.''.
    (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 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.--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 to any default on such loan that 
        occurs on or after the date of such purchase.
    ``(e) Reports and Cost Estimates.--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.
            ``(3) Annual cost estimates.--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--
            (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 
                        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) 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--
                            ``(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
            ``(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) 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 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) 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
            (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) 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) 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.--Prior to the beginning of each 
award year, the Secretary shall provide to institutions of 
higher education a list of all the reports and disclosures 
required under this Act. The list shall include--
            ``(1) the date each report or disclosure is 
        required to be completed and to be submitted, made 
        available, or disseminated;
            ``(2) the required recipients of each report or 
        disclosure;
            ``(3) any required method for transmittal or 
        dissemination of each report or disclosure;
            ``(4) a description of the content of each report 
        or disclosure sufficient to allow the institution to 
        identify the appropriate individuals to be assigned the 
        responsibility for such report or disclosure;
            ``(5) references to the statutory authority, 
        applicable regulations, and current guidance issued by 
        the Secretary regarding each report or disclosure; and
            ``(6) any other information which is pertinent to 
        the content or distribution of the report or 
        disclosure.''.
    (b) 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 include a State's 
                        data if that State does not permit the 
                        State's resident applicants to use the 
                        EZ FAFSA for State assistance.
                            ``(iv) Free availability and 
                        processing.--The provisions of 
                        paragraph (6) shall apply to the EZ 
                        FAFSA, and the data collected by means 
                        of the EZ FAFSA shall be available to 
                        institutions of higher education, 
                        guaranty agencies, and States in 
                        accordance with paragraph (10).
                    ``(C) Promoting the use of electronic 
                fafsa.--
                            ``(i) In general.--The Secretary 
                        shall make all efforts to encourage all 
                        applicants to utilize the electronic 
                        version of the forms described in 
                        paragraph (3).
                            ``(ii) Maintenance of the fafsa in 
                        a printable electronic file.--The 
                        Secretary shall maintain a version of 
                        the paper forms described in 
                        subparagraphs (A) and (B) in a 
                        printable electronic file that is 
                        easily portable, accessible, and 
                        downloadable to students on the same 
                        website used to provide students with 
                        the electronic version of the forms 
                        described in paragraph (3).
                            ``(iii) Requests for printed 
                        copy.--The Secretary shall provide a 
                        printed copy of the full paper version 
                        of FAFSA upon request.
                            ``(iv) Reporting requirement.--The 
                        Secretary shall maintain data, and 
                        periodically report to Congress, on the 
                        impact of the digital divide on 
                        students completing applications for 
                        aid under this title. The Secretary 
                        shall report on the steps taken to 
                        eliminate the digital divide and reduce 
                        production of the paper form described 
                        in subparagraph (A). The Secretary's 
                        report shall specifically address the 
                        impact of the digital divide on the 
                        following student populations:
                                    ``(I) Independent students.
                                    ``(II) Traditionally 
                                underrepresented students.
                                    ``(III) Dependent students.
            ``(3) Electronic format.--
                    ``(A) In general.--The Secretary shall 
                produce, distribute, and process forms in 
                electronic format to meet the requirements of 
                paragraph (1). The Secretary shall develop an 
                electronic version of the forms for applicants 
                who do not meet the requirements of subsection 
                (b) or (c) of section 479.
                    ``(B) Simplified applications: fafsa on the 
                web.--
                            ``(i) In general.--The Secretary 
                        shall develop and use a simplified 
                        electronic version of the form to be 
                        used by applicants meeting the 
                        requirements under subsection (b) or 
                        (c) of section 479.
                            ``(ii) Reduced data requirements.--
                        The simplified electronic version of 
                        the forms shall permit an applicant to 
                        submit, for financial assistance 
                        purposes, only the data elements 
                        required to make a determination of 
                        whether the applicant meets the 
                        requirements under subsection (b) or 
                        (c) of section 479.
                            ``(iii) Use of forms.--Nothing in 
                        this subsection shall be construed to 
                        prohibit the use of the forms developed 
                        by the Secretary pursuant to this 
                        paragraph by an eligible institution, 
                        eligible lender, guaranty agency, State 
                        grant agency, private computer software 
                        provider, a consortium thereof, or such 
                        other entities as the Secretary may 
                        designate.
                    ``(C) State data.--The Secretary shall 
                include on the electronic version of the forms 
                such items as may be necessary to determine 
                eligibility for State financial assistance, as 
                provided under paragraph (5), except 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 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 number of such 
                data items shall not be less than the number 
                included on the form for the 2008-2009 award 
                year unless a State notifies the Secretary that 
                the State no longer requires those data items 
                for the distribution of State need-based aid.
                    ``(B) Annual review.--The Secretary shall 
                conduct an annual review to determine--
                            ``(i) which data items each State 
                        requires to award need-based State aid; 
                        and
                            ``(ii) if the State will permit an 
                        applicant to file a form described in 
                        paragraph (2)(B) or (3)(B).
                    ``(C) Federal register notice.--Beginning 
                with the forms developed under paragraphs 
                (2)(B) and (3)(B) for the award year 2010-2011, 
                the Secretary shall publish on an annual basis 
                a notice in the Federal Register requiring 
                State agencies to inform the Secretary--
                            ``(i) if the State agency is unable 
                        to permit applicants to utilize the 
                        simplified forms described in 
                        paragraphs (2)(B) and (3)(B); and
                            ``(ii) of the State-specific 
                        nonfinancial data that the State agency 
                        requires for delivery of State need-
                        based financial aid.
                    ``(D) Use of simplified forms encouraged.--
                The Secretary shall encourage States to take 
                such steps as are necessary to encourage the 
                use of simplified forms under this subsection, 
                including those forms described in paragraphs 
                (2)(B) and (3)(B), for applicants who meet the 
                requirements of subsection (b) or (c) of 
                section 479.
                    ``(E) Consequences if state does not accept 
                simplified forms.--If a State does not permit 
                an applicant to file a form described in 
                paragraph (2)(B) or (3)(B) for purposes of 
                determining eligibility for State need-based 
                financial aid, the Secretary may determine that 
                State-specific questions for such State will 
                not be included on a form described in 
                paragraph (2)(B) or (3)(B). If the Secretary 
                makes such determination, the Secretary shall 
                advise the State of the Secretary's 
                determination.
                    ``(F) Lack of state response to request for 
                information.--If a State does not respond to 
                the Secretary's request for information under 
                subparagraph (B), the Secretary shall--
                            ``(i) permit residents of that 
                        State to complete simplified forms 
                        under paragraphs (2)(B) and (3)(B); and
                            ``(ii) not require any resident of 
                        such State to complete any data items 
                        previously required by that State under 
                        this section.
                    ``(G) Restriction.--The Secretary shall, to 
                the extent practicable, not require applicants 
                to complete any financial or nonfinancial data 
                items that are not required--
                            ``(i) by the applicant's State; or
                            ``(ii) by the Secretary.
            ``(6) Charges to students and parents for use of 
        forms prohibited.--The need and eligibility of a 
        student for financial assistance under parts A through 
        E (other than under subpart 4 of part A) may be 
        determined only by using a form developed by the 
        Secretary under this subsection. Such forms shall be 
        produced, distributed, and processed by the Secretary, 
        and no parent or student shall be charged a fee by the 
        Secretary, a contractor, a third-party servicer or 
        private software provider, or any other public or 
        private entity for the collection, processing, or 
        delivery of financial aid through the use of such 
        forms. No data collected on a form for which a fee is 
        charged shall be used to complete the form prescribed 
        under this section, except that a Federal or State 
        income tax form prepared by a paid income tax preparer 
        or preparer service for the primary purpose of filing a 
        Federal or State income tax return may be used to 
        complete the form prescribed under this section.
            ``(7) Restrictions on use of pin.--No person, 
        commercial entity, or other entity may request, obtain, 
        or utilize an applicant's personal identification 
        number assigned under paragraph (3)(G) for purposes of 
        submitting a form developed under this subsection on an 
        applicant's behalf.
            ``(8) Application processing cycle.--The Secretary 
        shall enable students to submit forms developed under 
        this subsection and initiate the processing of such 
        forms under this subsection, as early as practicable 
        prior to January 1 of the student's planned year of 
        enrollment.
            ``(9) Early estimates.--The Secretary shall 
        continue to--
                    ``(A) permit applicants to enter data in 
                such forms as described in this subsection in 
                the years prior to enrollment in order to 
                obtain a non-binding estimate of the 
                applicant's family contribution (as defined in 
                section 473);
                    ``(B) permit applicants to update 
                information submitted on forms described in 
                this subsection, without needing to re-enter 
                previously submitted information;
                    ``(C) develop a means to inform applicants, 
                in the years prior to enrollment, of student 
                aid options for individuals in similar 
                financial situations;
                    ``(D) develop a means to provide a clear 
                and conspicuous notice that the applicant's 
                expected family contribution is subject to 
                change and may not reflect the final expected 
                family contribution used to determine Federal 
                student financial aid award amounts under this 
                title; and
                    ``(E) consult with representatives of 
                States, institutions of higher education, and 
                other individuals with experience or expertise 
                in student financial assistance application 
                processes in making updates to forms used to 
                provide early estimates under this paragraph.
            ``(10) Distribution of data.--Institutions of 
        higher education, guaranty agencies, and States shall 
        receive, without charge, the data collected by the 
        Secretary using a form developed under this subsection 
        for the purposes of processing loan applications and 
        determining need and eligibility for institutional and 
        State financial aid awards. Entities designated by 
        institutions of higher education, guaranty agencies, or 
        States to receive such data shall be subject to all the 
        requirements of this section, unless such requirements 
        are waived by the Secretary.
            ``(11) Third party servicers and private software 
        providers.--To the extent practicable and in a timely 
        manner, the Secretary shall provide, to private 
        organizations and consortia that develop software used 
        by institutions of higher education for the 
        administration of funds under this title, all the 
        necessary specifications that the organizations and 
        consortia must meet for the software the organizations 
        and consortia develop, produce, and distribute 
        (including any diskette, modem, or network 
        communications) to be so used. The specifications shall 
        contain record layouts for required data. The Secretary 
        shall develop in advance of each processing cycle an 
        annual schedule for providing such specifications. The 
        Secretary, to the extent practicable, shall use 
        multiple means of providing such specifications, 
        including conferences and other meetings, outreach, and 
        technical support mechanisms (such as training and 
        printed reference materials). The Secretary shall, from 
        time to time, solicit from such organizations and 
        consortia means of improving the support provided by 
        the Secretary.
            ``(12) Parent's social security number and birth 
        date.--The Secretary is authorized to include space on 
        the forms developed under this subsection for the 
        social security number and birth date of parents of 
        dependent students seeking financial assistance under 
        this title.'';
            (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 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 that may be completed 
                without professional assistance via paper or 
                electronic version of the forms that are 
                provided by the Secretary;
                    ``(C) if advertising or providing any 
                information on a website, or if providing 
                services through a website, include on the 
                website a link to the website that provides the 
                electronic version of the forms developed under 
                subsection (a); and
                    ``(D) not produce, use, or disseminate any 
                other form for the purpose of applying for 
                Federal student financial aid other than the 
                form developed by the Secretary under 
                subsection (a).
            ``(4) Special rule.--Nothing in this Act shall be 
        construed to limit preparers of the forms required 
        under this title that meet the requirements of this 
        subsection from collecting source information from a 
        student or parent, including Internal Revenue Service 
        tax forms, in providing consultative and preparation 
        services in completing the forms.
    ``(e) Early Application and Estimated Award Demonstration 
Program.--
            ``(1) Purpose and objectives.--The purpose of the 
        demonstration program under this subsection is to 
        measure the benefits, in terms of student aspirations 
        and plans to attend an institution of higher education, 
        and any adverse effects, in terms of program costs, 
        integrity, distribution, and delivery of aid under this 
        title, of implementing an early application system for 
        all dependent students that allows dependent students 
        to apply for financial aid using information from two 
        years prior to the year of enrollment. Additional 
        objectives associated with implementation of the 
        demonstration program are the following:
                    ``(A) To measure the feasibility of 
                enabling dependent students to apply for 
                Federal, State, and institutional financial aid 
                in their junior year of secondary school, using 
                information from two years prior to the year of 
                enrollment, by completing any of the forms 
                under this subsection.
                    ``(B) To identify whether receiving final 
                financial aid award estimates not later than 
                the fall of the senior year of secondary school 
                provides students with additional time to 
                compete for the limited resources available for 
                State and institutional financial aid and 
                positively impacts the college aspirations and 
                plans of these students.
                    ``(C) To measure the impact of using income 
                information from the years prior to enrollment 
                on--
                            ``(i) eligibility for financial aid 
                        under this title and for other State 
                        and institutional aid; and
                            ``(ii) the cost of financial aid 
                        programs under this title.
                    ``(D) To effectively evaluate the benefits 
                and adverse effects of the demonstration 
                program on program costs, integrity, 
                distribution, and delivery of financial aid.
            ``(2) Program authorized.--Not later than two years 
        after the date of enactment of the Higher Education 
        Opportunity Act, the Secretary shall implement an early 
        application demonstration program enabling dependent 
        students who wish to participate in the program--
                    ``(A) to complete an application under this 
                subsection during the academic year that is two 
                years prior to the year such students plan to 
                enroll in an institution of higher education; 
                and
                    ``(B) based on the application described in 
                subparagraph (A), to obtain, not later than one 
                year prior to the year of the students' planned 
                enrollment, information on eligibility for 
                Federal Pell Grants, Federal student loans 
                under this title, and State and institutional 
                financial aid for the student's first year of 
                enrollment in the institution of higher 
                education.
            ``(3) Early application and estimated award.--For 
        all dependent students selected for participation in 
        the demonstration program who submit a completed FAFSA, 
        or, as appropriate, an EZ FAFSA, two years prior to the 
        year such students plan to enroll in an institution of 
        higher education, the Secretary shall, not later than 
        one year prior to the year of such planned enrollment--
                    ``(A) provide each student who completes an 
                early application with an estimated 
                determination of such student's--
                            ``(i) expected family contribution 
                        for the first year of the student's 
                        enrollment in an institution of higher 
                        education; and
                            ``(ii) Federal Pell Grant award for 
                        the first such year, based on the 
                        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;
                    ``(B) a commitment to make, not later than 
                the year before the dependent students 
                participating in the demonstration program plan 
                to enroll in an institution of higher 
                education, an estimate of the award of State 
                financial aid to such dependent students;
                    ``(C) a plan for recruiting institutions of 
                higher education and secondary schools with 
                different demographic characteristics to 
                participate in the program;
                    ``(D) a plan for selecting institutions of 
                higher education and secondary schools to 
                participate in the program that--
                            ``(i) demonstrate a commitment to 
                        encouraging students to submit a FAFSA, 
                        or, as appropriate, an EZ FAFSA, two 
                        years before the students' planned date 
                        of enrollment in an institution of 
                        higher education;
                            ``(ii) serve different populations 
                        of students;
                            ``(iii) in the case of institutions 
                        of higher education--
                                    ``(I) to the extent 
                                possible, are of varying types 
                                and sectors; and
                                    ``(II) commit to making, 
                                not later than the year prior 
                                to the year that dependent 
                                students participating in the 
                                demonstration program plan to 
                                enroll in the institution--
                                            ``(aa) estimated 
                                        institutional awards to 
                                        participating dependent 
                                        students; and
                                            ``(bb) estimated 
                                        grants or other 
                                        financial aid available 
                                        under this title 
                                        (including supplemental 
                                        grants under subpart 3 
                                        of part A), for all 
                                        participating dependent 
                                        students, along with 
                                        information on State 
                                        awards, as provided to 
                                        the institution by the 
                                        State;
                    ``(E) a commitment to participate in the 
                evaluation conducted by the Secretary; and
                    ``(F) such other information as the 
                Secretary may require.
            ``(6) Special provisions.--
                    ``(A) Discretion of student financial aid 
                administrators.--A financial aid administrator 
                at an institution of higher education 
                participating in a demonstration program under 
                this subsection may use the discretion provided 
                under section 479A as necessary for students 
                participating in the demonstration program.
                    ``(B) Waivers.--The Secretary is authorized 
                to waive, for an institution of higher 
                education participating in the demonstration 
                program, any requirements under this title, or 
                regulations prescribed under this title, that 
                will make the demonstration program unworkable, 
                except that the Secretary shall not waive any 
                provisions with respect to the maximum award 
                amounts for grants and loans under this title.
            ``(7) Outreach.--The Secretary shall make 
        appropriate efforts to notify States of the 
        demonstration program under this subsection. Upon 
        determination of participating States, the Secretary 
        shall continue to make efforts to notify institutions 
        of higher education and dependent students within 
        participating States of the opportunity to participate 
        in the demonstration program and of the participation 
        requirements.
            ``(8) Evaluation.--The Secretary shall conduct a 
        rigorous evaluation of the demonstration program to 
        measure the program's benefits and adverse effects, as 
        the benefits and effects relate to the purpose and 
        objectives of the program described in paragraph (1). 
        In conducting the evaluation, the Secretary shall--
                    ``(A) 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 Higher Education Opportunity Act, the 
        Secretary shall provide a written report to the 
        authorizing committees on the work the Department has 
        done with the Secretary of the Treasury regarding--
                    ``(A) how the expected family contribution 
                of a student can be calculated using 
                substantially less income and asset information 
                than was used on March 31, 2008;
                    ``(B) the extent to which the reduced 
                income and asset information will result in a 
                redistribution of Federal grants and subsidized 
                loans under this title, State aid, or 
                institutional aid, or in a change in the 
                composition of the group of recipients of such 
                aid, and the amount of such redistribution;
                    ``(C) how the alternative approaches for 
                calculating the expected family contribution 
                will--
                            ``(i) rely mainly, in the case of 
                        students and parents who file income 
                        tax returns, on information available 
                        on the 1040, 1040EZ, and 1040A; and
                            ``(ii) include formulas for 
                        adjusting income or asset information 
                        to produce similar results to the 
                        existing approach with less data;
                    ``(D) how the Internal Revenue Service can 
                provide to the Secretary of Education income 
                and other data needed to compute an expected 
                family contribution for taxpayers and 
                dependents of taxpayers, and when in the 
                application cycle the data can be made 
                available;
                    ``(E) whether data provided by the Internal 
                Revenue Service can be used to--
                            ``(i) prepopulate the electronic 
                        version of the FAFSA with student and 
                        parent taxpayer data; or
                            ``(ii) generate an expected family 
                        contribution without additional action 
                        on the part of the student and 
                        taxpayer;
                    ``(F) the extent to which the use of income 
                data from two years prior to a student's 
                planned enrollment date will change the 
                expected family contribution computed in 
                accordance with part F, and potential 
                adjustments to the need analysis formula that 
                will minimize the change; and
                    ``(G) the extent to which the data elements 
                collected on the FAFSA on March 31, 2008, that 
                are needed to determine eligibility for student 
                aid or to administer the Federal student 
                financial aid programs, but are not needed to 
                compute an expected family contribution, such 
                as information regarding the student's 
                citizenship or permanent residency status, 
                registration for selective service, or driver's 
                license number, can be reduced without adverse 
                effects.
            ``(3) Study.--
                    ``(A) Formation of study group.--Not later 
                than 90 days after the date of enactment of the 
                Higher Education Opportunity Act, the 
                Comptroller General shall convene a study group 
                the membership of which shall include the 
                Secretary of Education, the Secretary of the 
                Treasury, the Director of the Office of 
                Management and Budget, the Director of the 
                Congressional Budget Office, representatives of 
                institutions of higher education with expertise 
                in Federal and State financial aid assistance, 
                State chief executive officers of higher 
                education with a demonstrated commitment to 
                simplifying the FAFSA, and such other 
                individuals as the Comptroller General and the 
                Secretary of Education may designate.
                    ``(B) Study required.--The Comptroller 
                General, in consultation with the study group 
                convened under subparagraph (A) shall--
                            ``(i) review and build on the work 
                        of the Secretary of Education and the 
                        Secretary of the Treasury, and 
                        individuals with expertise in analysis 
                        of financial need, to assess 
                        alternative approaches for calculating 
                        the expected family contribution under 
                        the statutory need analysis formula in 
                        effect on the day before the date of 
                        enactment of the Higher Education 
                        Opportunity Act and under a new 
                        calculation that will use substantially 
                        less income and asset information than 
                        was used for the 2008-2009 FAFSA;
                            ``(ii) conduct an additional 
                        analysis if necessary; and
                            ``(iii) make recommendations to the 
                        authorizing committees.
                    ``(C) Objectives of study.--The objectives 
                of the study required under subparagraph (B) 
                are--
                            ``(i) to determine methods to 
                        shorten the FAFSA and make the FAFSA 
                        easier and less time-consuming to 
                        complete, thereby increasing higher 
                        education access for low-income 
                        students;
                            ``(ii) to identify changes to the 
                        statutory need analysis formula that 
                        will be necessary to reduce the amount 
                        of financial information students and 
                        families need to provide to receive a 
                        determination of eligibility for 
                        student financial aid without causing 
                        significant redistribution of Federal 
                        grants and subsidized loans under this 
                        title; and
                            ``(iii) to review State and 
                        institutional needs and uses for data 
                        collected on the FAFSA, and to 
                        determine the best means of addressing 
                        such needs in the case of modification 
                        of the FAFSA as described in clause 
                        (i), or modification of the need 
                        analysis formula as described in clause 
                        (ii).
                    ``(D) Required subjects of study.--The 
                study required under subparagraph (B) shall 
                examine--
                            ``(i) with respect to 
                        simplification of the financial aid 
                        application process using the statutory 
                        requirements for need analysis--
                                    ``(I) additional steps that 
                                can be taken to simplify the 
                                financial aid application 
                                process for students who (or, 
                                in the case of dependent 
                                students, whose parents) are 
                                not required to file a Federal 
                                income tax return for the prior 
                                taxable year;
                                    ``(II) information on State 
                                use of information provided on 
                                the FAFSA, including--
                                            ``(aa) whether a 
                                        State uses, as of the 
                                        time of the study, or 
                                        can use, a student's 
                                        expected family 
                                        contribution based on 
                                        data from two years 
                                        prior to the student's 
                                        planned enrollment 
                                        date;
                                            ``(bb) the extent 
                                        to which States and 
                                        institutions will 
                                        accept the data 
                                        provided by the 
                                        Internal Revenue 
                                        Service to prepopulate 
                                        the electronic version 
                                        of the FAFSA to 
                                        determine the 
                                        distribution of State 
                                        and institutional 
                                        student financial aid 
                                        funds;
                                            ``(cc) what data 
                                        are used by States, as 
                                        of the time of the 
                                        study, to determine 
                                        eligibility for State 
                                        student financial aid, 
                                        and whether the data 
                                        are used for merit- or 
                                        need-based aid;
                                            ``(dd) whether 
                                        State data are required 
                                        by State law, State 
                                        regulations, or policy 
                                        directives; and
                                            ``(ee) the extent 
                                        to which any State-
                                        specific information 
                                        requirements can be met 
                                        by completion of a 
                                        State application 
                                        linked to the 
                                        electronic version of 
                                        the FAFSA; and
                                    ``(III) information on 
                                institutional needs, including 
                                the extent to which 
                                institutions of higher 
                                education are already using 
                                supplemental forms to collect 
                                additional data from students 
                                and their families to determine 
                                eligibility for institutional 
                                funds; and
                            ``(ii) ways to reduce the amount of 
                        financial information students and 
                        families need to provide to receive a 
                        determination of eligibility for 
                        student financial aid, taking into 
                        account--
                                    ``(I) the amount of 
                                redistribution of Federal 
                                grants and subsidized loans 
                                under this title caused by such 
                                a reduction, and the benefits 
                                to be gained by having an 
                                application process that will 
                                be easier for students and 
                                their families;
                                    ``(II) students and 
                                families who do not file income 
                                tax returns;
                                    ``(III) the extent to which 
                                the full array of income and 
                                asset information collected on 
                                the FAFSA, as of the time of 
                                the study, plays an important 
                                role in the awarding of need-
                                based State financial aid, and 
                                whether the State can use an 
                                expected family contribution 
                                generated by the FAFSA, instead 
                                of income and asset information 
                                or a calculation with reduced 
                                data elements, to support 
                                determinations of eligibility 
                                for such State aid programs 
                                and, if not, what additional 
                                information will be needed or 
                                what changes to the FAFSA will 
                                be required; and
                                    ``(IV) information on 
                                institutional needs, including 
                                the extent to which 
                                institutions of higher 
                                education are already using 
                                supplemental forms to collect 
                                additional data from students 
                                and their families to determine 
                                eligibility for institutional 
                                funds; and
                                    ``(V) changes to this Act 
                                or other laws that will be 
                                required to implement a 
                                modified need analysis system.
            ``(4) Consultation.--The Secretary shall consult 
        with the Advisory Committee on Student Financial 
        Assistance established under section 491 as appropriate 
        in carrying out this subsection.
            ``(5) Reports.--
                    ``(A) Reports on study.--The Secretary 
                shall prepare and submit to the authorizing 
                committees--
                            ``(i) not later than one year after 
                        the date of enactment of the Higher 
                        Education Opportunity Act, an interim 
                        report on the progress of the study 
                        required under paragraph (3) that 
                        includes any preliminary 
                        recommendations by the study group 
                        established under such paragraph; and
                            ``(ii) not later than two years 
                        after the date of enactment of the 
                        Higher Education Opportunity Act, a 
                        final report on the results of the 
                        study required under paragraph (3) that 
                        includes recommendations by the study 
                        group established under such paragraph.
                    ``(B) Reports on fafsa simplification 
                efforts.--The Secretary shall report to the 
                authorizing committees, from time to time, on 
                the progress of the simplification efforts 
                under this subsection.
    ``(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 INSTITUTION FINANCIAL AID OFFER FORM.

    (a) Model Format.--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) not later than one year after the date of 
        enactment of the Higher Education Opportunity Act--
                    (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 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);
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) the student successfully passes two 
                unannounced drug tests conducted by a drug 
                rehabilitation program that complies with such 
                criteria as the Secretary shall prescribe in 
                regulations for purposes of subparagraph 
                (A)(i); or'';
            (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.--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.--Within one year 
        of enactment of the Higher Education Opportunity Act, 
        the Secretary shall analyze data from the FAFSA 
        containing information regarding the number, 
        characteristics, and circumstances of students denied 
        Federal student aid based on a drug conviction while 
        receiving Federal aid.
            ``(2) Results from analysis.--The results from the 
        analysis of such information shall be made available on 
        a continuous basis via the Department website and the 
        Digest of Education Statistics.
            ``(3) Data updating.--The data analyzed under this 
        subsection shall be updated at the beginning of each 
        award year and at least one additional time during such 
        award year.
            ``(4) Report to congress.--The Secretary shall 
        prepare and submit to the authorizing committees, in 
        each fiscal year, a report describing the results 
        obtained by the establishment and operation of the data 
        system authorized by this subsection.''.
    (b) 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. 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 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--
                            ``(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 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 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;
                    ``(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 reporting will not reveal 
        personally identifiable information about an individual 
        student. If such number is not sufficient for such 
        purposes, then the institution shall note that the 
        institution enrolled too few of such students to so 
        disclose or report with confidence and confidentiality.
            ``(ii) The requirements of clause (i) shall not 
        apply to two-year, degree-granting institutions of 
        higher education until academic year 2011-2012.
            ``(B)(i) In order to assist two-year degree-
        granting institutions of higher education in meeting 
        the requirements of paragraph (1)(L) and subsection 
        (e), the Secretary, in consultation with the 
        Commissioner for Education Statistics, shall, not later 
        than 90 days after the date of enactment of the Higher 
        Education Opportunity Act, convene a group of 
        representatives from diverse institutions of higher 
        education, experts in the field of higher education 
        policy, state higher education officials, students, and 
        other stakeholders in the higher education community, 
        to develop recommendations regarding the accurate 
        calculation and reporting of the information required 
        to be disseminated or reported under paragraph (1)(L) 
        and subsection (e) by two-year, degree-granting 
        institutions of higher education. In developing such 
        recommendations, the group of representatives shall 
        consider the mission and role of two-year degree-
        granting institutions of higher education, and may 
        recommend additional or alternative measures of student 
        success for such institutions in light of the mission 
        and role of such institutions.
            ``(ii) The Secretary shall widely disseminate the 
        recommendations required under this subparagraph to 
        two-year, degree-granting institutions of higher 
        education, the public, and the authorizing committees 
        not later than 18 months after the first meeting of the 
        group of representatives convened under clause (i).
            ``(iii) The Secretary shall use the recommendations 
        from the group of representatives convened under clause 
        (i) to provide technical assistance to two-year, 
        degree-granting institutions of higher education in 
        meeting the requirements of paragraph (1)(L) and 
        subsection (e).
            ``(iv) The Secretary may modify the information 
        required to be disseminated or reported under paragraph 
        (1)(L) or subsection (e) by a two-year, degree-granting 
        institution of higher--
                    ``(I) based on the recommendations received 
                under this subparagraph from the group of 
                representatives convened under clause (i);
                    ``(II) to include additional or alternative 
                measures of student success if the goals of the 
                provisions of paragraph (1)(L) and subsection 
                (e) can be met through additional means or 
                comparable alternatives; and
                    ``(III) during the period beginning on the 
                date of enactment of the Higher Education 
                Opportunity Act, and ending on June 30, 
                2011.''.
    (b) Exit Counseling.--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 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 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) 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
                    (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) 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--
                    ``(A) any established criteria the 
                institution uses regarding the transfer of 
                credit earned at another institution of higher 
                education; and
                    ``(B) a list of institutions of higher 
                education with which the institution has 
                established an articulation agreement.
            ``(2) Rule of construction.--Nothing in this 
        subsection shall be construed to--
                    ``(A) authorize the Secretary or the 
                National Advisory Committee on Institutional 
                Quality and Integrity to require particular 
                policies, procedures, or practices by 
                institutions of higher education with respect 
                to transfer of credit;
                    ``(B) authorize an officer or employee of 
                the Department to exercise any direction, 
                supervision, or control over the curriculum, 
                program of instruction, administration, or 
                personnel of any institution of higher 
                education, or over any accrediting agency or 
                association;
                    ``(C) limit the application of the General 
                Education Provisions Act; or
                    ``(D) create any legally enforceable right 
                on the part of a student to require an 
                institution of higher education to accept a 
                transfer of credit from another institution.
    ``(i) Disclosure of Fire Safety Standards and Measures.--
            ``(1) Annual fire safety reports on student housing 
        required.--Each eligible institution participating in 
        any program under this title that maintains on-campus 
        student housing facilities shall, on an annual basis, 
        publish a fire safety report, which shall contain 
        information with respect to the campus fire safety 
        practices and standards of that institution, 
        including--
                    ``(A) statistics concerning the following 
                in each on-campus student housing facility 
                during the most recent calendar years for which 
                data are available:
                            ``(i) the number of fires and the 
                        cause of each fire;
                            ``(ii) the number of injuries 
                        related to a fire that result in 
                        treatment at a medical facility;
                            ``(iii) the number of deaths 
                        related to a fire; and
                            ``(iv) the value of property damage 
                        caused by a fire;
                    ``(B) a description of each on-campus 
                student housing facility fire safety system, 
                including the fire sprinkler system;
                    ``(C) the number of regular mandatory 
                supervised fire drills;
                    ``(D) policies or rules on portable 
                electrical appliances, smoking, and open flames 
                (such as candles), procedures for evacuation, 
                and policies regarding fire safety education 
                and training programs provided to students, 
                faculty, and staff; and
                    ``(E) plans for future improvements in fire 
                safety, if determined necessary by such 
                institution.
            ``(2) Report to the secretary.--Each 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).
            ``(3) Current information to campus community.--
        Each eligible institution participating in any program 
        under this title shall--
                    ``(A) make, keep, and maintain a log, 
                recording all fires in on-campus student 
                housing facilities, including the nature, date, 
                time, and general location of each fire; and
                    ``(B) make annual reports to the campus 
                community on such fires.
            ``(4) Responsibilities of the secretary.--The 
        Secretary shall--
                    ``(A) make the statistics submitted under 
                paragraph (1)(A) to the Secretary available to 
                the public; and
                    ``(B) in coordination with nationally 
                recognized fire organizations and 
                representatives of institutions of higher 
                education, representatives of associations of 
                institutions of higher education, and other 
                organizations that represent and house a 
                significant number of students--
                            ``(i) identify exemplary fire 
                        safety policies, procedures, programs, 
                        and practices, including the 
                        installation, to the technical 
                        standards of the National Fire 
                        Protection Association, of fire 
                        detection, prevention, and protection 
                        technologies in student housing, 
                        dormitories, and other buildings;
                            ``(ii) disseminate the exemplary 
                        policies, procedures, programs and 
                        practices described in clause (i) to 
                        the Administrator of the United States 
                        Fire Administration;
                            ``(iii) make available to the 
                        public information concerning those 
                        policies, procedures, programs, and 
                        practices that have proven effective in 
                        the reduction of fires; and
                            ``(iv) develop a protocol for 
                        institutions to review the status of 
                        their fire safety systems.
            ``(5) Rules of construction.--Nothing in this 
        subsection shall be construed to--
                    ``(A) authorize the Secretary to require 
                particular policies, procedures, programs, or 
                practices by institutions of higher education 
                with respect to fire safety, other than with 
                respect to the collection, reporting, and 
                dissemination of information required by this 
                subsection;
                    ``(B) affect section 444 of the General 
                Education Provisions Act (the Family 
                Educational Rights and Privacy Act of 1974) or 
                the regulations issued under section 264 of the 
                Health Insurance Portability and Accountability 
                Act of 1996 (42 U.S.C. 1320d-2 note);
                    ``(C) create a cause of action against any 
                institution of higher education or any employee 
                of such an institution for any civil liability; 
                or
                    ``(D) establish any standard of care.
            ``(6) Compliance report.--The Secretary shall 
        annually report to the authorizing committees regarding 
        compliance with this subsection by institutions of 
        higher education, including an up-to-date report on the 
        Secretary's monitoring of such compliance.
            ``(7) Evidence.--Notwithstanding any other 
        provision of law, evidence regarding compliance or 
        noncompliance with this subsection shall not be 
        admissible as evidence in any proceeding of any court, 
        agency, board, or other entity, except with respect to 
        an action to enforce this subsection.
    ``(j) Missing Person Procedures.--
            ``(1) Option and procedures.--Each institution of 
        higher education that provides on-campus housing and 
        participates in any program under this title shall--
                    ``(A) establish a missing student 
                notification policy for students who reside in 
                on-campus housing that--
                            ``(i) informs each such student 
                        that such student has the option to 
                        identify an individual to be contacted 
                        by the institution not later than 24 
                        hours after the time that the student 
                        is determined missing in accordance 
                        with official notification procedures 
                        established by the institution under 
                        subparagraph (B);
                            ``(ii) provides each such student a 
                        means to register confidential contact 
                        information in the event that the 
                        student is determined to be missing for 
                        a period of more than 24 hours;
                            ``(iii) advises each such student 
                        who is under 18 years of age, and not 
                        an emancipated individual, that the 
                        institution is required to notify a 
                        custodial parent or guardian not later 
                        than 24 hours after the time that the 
                        student is determined to be missing in 
                        accordance with such procedures;
                            ``(iv) informs each such residing 
                        student that the institution will 
                        notify the appropriate law enforcement 
                        agency not later than 24 hours after 
                        the time that the student is determined 
                        missing in accordance with such 
                        procedures; and
                            ``(v) requires, if the campus 
                        security or law enforcement personnel 
                        has been notified and makes a 
                        determination that a student who is the 
                        subject of a missing person report has 
                        been missing for more than 24 hours and 
                        has not returned to the campus, the 
                        institution to initiate the emergency 
                        contact procedures in accordance with 
                        the student's designation; and
                    ``(B) establish official notification 
                procedures for a missing student who resides in 
                on-campus housing that--
                            ``(i) includes procedures for 
                        official notification of appropriate 
                        individuals at the institution that 
                        such student has been missing for more 
                        than 24 hours;
                            ``(ii) requires any official 
                        missing person report relating to such 
                        student be referred immediately to the 
                        institution's police or campus security 
                        department; and
                            ``(iii) if, on investigation of the 
                        official report, such department 
                        determines that the missing student has 
                        been missing for more than 24 hours, 
                        requires--
                                    ``(I) such department to 
                                contact the individual 
                                identified by such student 
                                under subparagraph (A)(i);
                                    ``(II) if such student is 
                                under 18 years of age, and not 
                                an emancipated individual, the 
                                institution to immediately 
                                contact the custodial parent or 
                                legal guardian of such student; 
                                and
                                    ``(III) if subclauses (I) 
                                or (II) do not apply to a 
                                student determined to be a 
                                missing person, inform the 
                                appropriate law enforcement 
                                agency.
            ``(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.
            ``(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