[Senate Report 109-218]
[From the U.S. Government Publishing Office]
Calendar No. 300
109th Congress Report
2d Session SENATE 109-218
___________________________________________________________________________
HIGHER EDUCATION AMENDMENTS OF 2005
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R E P O R T
of the
COMMITTEE ON HEALTH,
EDUCATION, LABOR, AND PENSIONS
UNITED STATES SENATE
to accompany
S. 1614
February 28, 2006.--Ordered to be printed
Calendar No. 300
109th Congress Report
2d Session SENATE 109-218
___________________________________________________________________________
HIGHER EDUCATION AMENDMENTS OF 2005
----------
R E P O R T
of the
COMMITTEE ON HEALTH,
EDUCATION, LABOR, AND PENSIONS
UNITED STATES SENATE
to accompany
S. 1614
February 28, 2006.--Ordered to be printed
C O N T E N T S
----------
Page
I. Purpose and summary of the legislation...........................1
II. Background and need for legislation..............................8
III. Legislative history and committee action.........................9
IV. Explanation of bill and committee views.........................11
V. Cost estimate...................................................54
VI. Application of law of the legislative branch....................67
VII. Regulatory impact statement.....................................67
VIII.Section-by-section analysis.....................................67
IX. Changes in existing law........................................105
Calendar No. 300
109th Congress Report
2d Session SENATE 109-218
======================================================================
HIGHER EDUCATION AMENDMENTS OF 2005
_______
February 28, 2006.--Ordered to be printed
_______
Mr. Enzi, from the Committee on Health, Education, Labor, and Pensions,
submitted the following
R E P O R T
[To accompany S. 1614]
The Committee on Health, Education, Labor, and Pensions, to
which was referred the bill (S. 1614) to exten the
authorization of programs under the Higher Education Act of
1965, and for other purposes, having considered the same,
reports favorably thereon with an amendment in the nature of a
substitute and recommends that the bill (as amended) do pass.
I. Purpose and Summary of the Legislation
The purpose of S. 1614, the Higher Education Act Amendments
of 2005, is to reauthorize and improve the Federal student
financial aid programs and other higher education programs
established under the Higher Education Act of 1965. The bill
also reauthorizes the Education of the Deaf Act of 1986, the
United States Institute of Peace Act and the Navajo Community
College Act.
The bill authorizes such sums as may be necessary to carry
out the programs.
S. 1614 is the product of an extensive bipartisan effort
and input from the major stakeholders in higher education.
This legislation amends the Higher Education Act of 1965
and the Higher Education Amendments Act of 1998 by making the
changes identified below.
TITLE I--GENERAL PROVISIONS
This title makes several conforming changes to the Higher
Education Act of 1965, authorizes programs and updates terms
and provisions. The 50 percent rules are relaxed to permit
schools that have a good track record to expand distance
education offerings. The definition of an institution of higher
education is amended to clarify that students who have been
home-schooled and students enrolled in dual or concurrent
enrollment programs may be admitted as regular students. An
existing grant program to reduce drug abuse and underage
drinking/alcohol abuse has been rewritten. The Secretary is
required to make expanded information about the costs of
attending postsecondary education publicly available.
Provisions for the Performance Based Organization, which
administers the student aid programs, are updated. Eligibility
for Federal student assistance programs for foreign medical
schools is limited. The ``90/10'' rule is removed as an
institutional eligibility requirement for proprietary schools,
but the requirement is retained as condition of participation
in the student financial assistance programs, and made
applicable to all types of institutions.
TITLE II--TEACHER QUALITY ENHANCEMENT
The legislation retains the current State grant and
Partnership grant programs that provide funding to improve
student achievement and the quality of the current and future
teacher workforce. The accountability section has been revised
to include State reports of pass rates for students completing
teacher education programs. The uses of funds under the State
and partnership grants are revised to meet the demand for
highly qualified teachers under the No Child Left Behind Act.
The use of technology in instruction and the ability of
teachers to use data and technology to improve student
achievement are enhanced.
S. 1614 includes teacher recruitment as an allowable use
under both the State grant and Partnership grant programs
rather than retaining a separate grant program for recruitment.
The committee continues to believe that teacher recruitment is
important, but believes the need can be met more effectively,
given the overall size of the Title II programs within the
Higher Education Act, by providing more flexibility with
respect to allowable activities under the State and partnership
programs.
TITLE III--INSTITUTIONAL AID
This title reauthorizes programs to support Historically
Black Colleges and Universities, Alaska Native and Native
Hawaiian-Serving Institutions, Tribal Colleges and
Universities, and professional or graduate programs for
minority students. The American Indian Tribally Controlled
Colleges and Universities program has been changed to provide
an optional 30percent set-aside for 1-year grants for
construction, maintenance and renovation needs, and distribution of the
remaining funds to eligible institutions according to an established
formula. Three new minority-serving institutions that have established
qualified graduate programs since the Higher Education Amendments of
1998 have been added to the list of eligible professional and graduate
programs. A new program for Native American-Serving, nontribal
institutions is established to improve and expand their capacity to
serve Native American students.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
PELL GRANTS
The legislation establishes the maximum authorized Pell
award at $5,100 for academic year 2006-07 and increases the
authorization to $6,300 over the next 4 years. The ``tuition
sensitivity'' provision, that could negatively affect award
amounts for students attending low-cost institutions, such as
community colleges, has been eliminated. The legislation
changes the current year-round Pell grant provision, that
allows the Secretary to award two Pell grants in 1 year to
certain students on a case-by-case basis, to a requirement that
the Secretary allow students who accelerate their progress by
attending additional sessions to receive up to two Pell grants
in 1 award year. After many years of having no time limitation
on the receipt of Pell grant funds, the committee establishes a
time limit of 18 semesters or an equivalent period of time.
TRIO PROGRAMS
The Federal TRIO programs, which provide assistance for
first generation and low-income students, have been
reauthorized and strengthened. The legislation adds meaningful
accountability that will ensure programs maintain high quality
services to students.
GEAR UP
The GEAR UP program provides assistance for States or
partnerships to help low-income students in 7th grade through
high school prepare for college. This legislation maintains the
requirement that States provide scholarships for students.
Emphasis is placed on efforts to reduce the need for remedial
education at the postsecondary level and to improve completion
rates for high school students.
LEVERAGING EDUCATION ASSISTANCE PARTNERSHIP (LEAP)
The LEAP program is reauthorized, but the Special LEAP is
replaced by the Grants for Access and Persistence program that
is designed to improve the ability of the Federal Government to
leverage funds for students through State and private funds.
Institutions are permitted to make in-kind contributions that
help reduce the cost of attendance for students without
reducing their eligibility for Federal student aid.
MIGRANT AND SEASONAL PROGRAMS
The migrant and seasonal program is reauthorized. Changes
to the program mirror language in the Senate Workforce
Investment Act reauthorization bill: families of migrant
workers are made eligible for services.
ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM
The Robert C. Byrd Honors Scholarship Program is
reauthorized without change.
Part B--Federal Family Education Loan Program [additional changes are
reflected under Title X--Reconciliation]
Financial literacy is added to allowable default reduction
activities. Consumer information requirements with respect to
lending generally, and consolidation lending specifically, are
increased. Lenders are required to provide borrower repayment
information to all major credit bureaus.
Part C--Federal Work-Study Program
The Secretary may waive the community service requirement
for institutions under this part if they can certify that at
least 15 percent of their student enrollment participates in
community service activities.
Part D--William D. Ford Federal Direct Loan Program [additional changes
are reflected under Title X--Reconciliation]
The William D. Ford Federal Direct Loan Program is
reauthorized.
Part E--Federal Perkins Loans
The Perkins loan program, through which institutions are
permitted to operate revolving loan funds, is reauthorized.
Three new cancellation categories were added, and one was
expanded under this part: full-time faculty members at Tribal
Colleges or Universities, librarians with a master's degree in
library science serving in title I schools or libraries serving
areas with title I schools, full-time speech language
therapists with a master's degree working in title I schools
and early childhood educators will be eligible for loan
cancellation.
Part F--Need Analysis [additional changes are reflected under Title X--
Reconciliation]
The bill provides for less than half-time students to
include certain education related expenses for up to three
semesters during their undergraduate study. Treatment of
prepaid college tuition plans and education savings accounts is
equalized and treatment of State scholarship programs, such as
the Hathaway scholarship, is clarified.
Part G--General Provisions Relating to Student Assistance
The Advisory Committee for Student Financial Assistance is
reauthorized. In addition to its other assignments and
activities, the Advisory Committee is required to carry out a
review and analysis of title IV regulations and conduct a study
of innovative pathways to baccalaureate degree attainment.
The Secretary is required to carry out activities that
simplify the financial aid process, develop an ``EZ FAFSA,''
conduct early financial aid awareness activities and provide
students with early assessments of financial aid eligibility.
The bill clarifies that students will not be denied
eligibility for Federal student aid because of a drug
possession conviction unless the conviction occurs while the
student is receiving assistance under this title. The bill
retains the limitations on eligibility for students convicted
of sale of a controlled substance.
Institutions must provide information on their transfer-of-
credit policies. Transfer of credit must not be denied solely
on the basis of the accreditation of the institution from which
the student is transferring. In addition, institutions must
provide a list of institutions with which they have
articulation agreements and the percent of students who
transfer academic credit successfully.
The Secretary is required to provide institutions
participating in Federal student aid programs with a calendar
of reporting and disclosure requirements indicating both when
certain information is due and the required recipients.
As a condition of participation, all institutions must now
derive at least 10 percent of their revenues from sources other
than title IV programs.
Part H--Program Integrity
Accrediting agencies are required to have expanded due
process procedures in place to resolve disputes over adverse
action. The bill updates accreditation processes with respect
to online or distance education in recognition of current
trends. The bill ensures that institutional missions are
considered during the accreditation process.
The Secretary is required to provide information to schools
undergoing a program review and give those institutions an
opportunity to review and respond to that information before a
final determination is made.
TITLE V--DEVELOPING INSTITUTIONS
The bill creates a new grant program to support graduate
programs at Hispanic-Serving Institutions, similar to the
existing program for Historically Black Colleges and
Universities. Institutions are no longer required to wait 2
years before applying for a grant again under this title. In
addition, the bill eliminates a duplicative requirement that
institutions certify certain students as low-income.
TITLE VI--INTERNATIONAL EDUCATION
The international education programs are reauthorized. An
interagency group to determine the priority for international
education programs is established. The Secretary is provided
with authority to eliminate grant funding for programs failing
to meet grant requirements.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Graduate education programs under this title are
reauthorized. Areas of professional workforce shortages are
included as areas of national need in determining priority for
grants. The disability demonstration program is reauthorized.
TITLE VIII--MISCELLANEOUS
New grant programs are established to help institutions of
higher education develop new curriculum and services related to
high skill, high growth occupations; to support the Teach for
America program; to help institutions retain students and
improve articulation agreements with other institutions of
higher education; to provide fellowships for minority scholars
in math and science; and to support merit-based math and
science scholarships. The Secretary is required to enter into
contracts for studies on the cost of postsecondary education
and on college enrollment rate trends linked to secondary
schools.
TITLE IX--AMENDMENTS TO OTHER LAWS
EDUCATION OF THE DEAF ACT
The Federal grant program for Gallaudet University and
other institutions serving deaf students at the secondary and
postsecondary level is reauthorized.
UNITED STATES INSTITUTE OF PEACE ACT
The legislation reauthorizes the Institute of Peace and
provides for the Institute's authorization to be automatically
extended for 1 year, if necessary, similar to other Federal
education programs. In addition, the legislation clarifies that
the term of members begins on the date of their confirmation
and swearing in.
TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT AND THE NAVAJO
COMMUNITY COLLEGE ACT
Two programs that provide funding for tribally controlled
institutions of higher education are reauthorized.
TITLE X--RECONCILIATION
Part A--Education Provisions
The Concurrent Resolution on the Budget for Fiscal Year
2006 contains a reconciliation instruction that directs the
Senate Health, Education, Labor, and Pensions Committee to
report changes in laws within its jurisdiction sufficient to
reduce outlays for fiscal years 2006 through 2010. Among the
provisions that help to reduce outlays are the following: (1)
lender payments are limited to the lender interest rate, a
provision also known as floor income; (2) guaranty agencies are
required to deposit 1 percent of the amounts they guarantee
into their Federal fund; (3) the scheduled shift to a fixed
interest rate of 6.8 percent on undergraduate and graduate non-
consolidation borrowing, effective July 1, 2006, is retained;
(4) lender insurance reimbursement rates are reduced to 97
percent; (5) lenders originating consolidation loans will be
charged an additional 50 basis point fee; and (6) the rate on
PLUS loans is increased from 7.9 percent to 8.5 percent.
The Taxpayer-Teacher Protection Act, which ends the
practice of transferring and refunding 9.5 percent floor loans
and provides loan forgiveness of up to $17,500 to math, science
and special education teachers if they teach for 5 consecutive
years is made permanent. The legislation also increases
subsidized borrowing levels for first and second year students
to $3,500 and $4,500 respectively, and unsubsidized borrowing
amounts for graduate students by $2,000 per year. In addition,
eligibility for PLUS loans is extended to graduate students.
The single holder rule, which required borrowers to consolidate
with their current lender, is repealed. Provisions allowing
schools with low default rates to waive the 30-day wait period
before making initial disbursements to first-time borrowers and
to make single disbursements to students who are enrolled for
only one term are reinstated. The Secretary is permitted to
waive a portion of borrower origination fees. Borrowers in the
income contingent repayment plan who hold public service jobs
and make 120 consecutive on-time payments will have their loans
canceled. A provision known as the SAP-gap, that limited
special allowance payments to lenders making loans to parent
borrowers, is repealed. A moratorium is placed on new ``school
as lender'' program participants and new restrictions are
placed on current school lenders. Members of the armed services
or the reserve components of the armed services who have
borrowed since July 1, 2001 and who serve in a combat zone will
be eligible for loan deferment.
The ``auto-zero'' amount is increased from $15,000 to
$20,000. This allows families with adjusted gross income levels
below $20,000 to receive a zero expected family contribution
automatically. The income protection allowance was increased
and the asset conversion rate was decreased for all categories
of students.
PROVISIONAL GRANT ASSISTANCE PROGRAM (PROGAP), INCLUDING NATIONAL
SCIENCE AND MATHEMATICS ACCESS TO RETAIN TALENT (SMART) GRANTS
ProGAP is a temporary new mandatory program that provides
over $8.25 billion in grant aid for students over 5 years.
There are two separate funding streams: ProGAP and SMART
grants.
Under the basic ProGAP, approximately $6 billion is
designated for low-income students to supplement other Federal
student grant aid. Students eligible for Pell grants are also
eligible for aid under ProGAP. The Secretary shall ensure that
grants under this program are awarded to students with the
greatest need. ProGAP grants shall be awarded in the same
manner as grants under section 401 of the act.
$2.25 billion is authorized to fund National SMART grants
which will be awarded to students in their third and fourth
years of college who are majoring in math, science, or foreign
language fields. Grants of up to $1,500 will be awarded each
award year. The program is designed to encourage matching
contributions from businesses or other non-Federal sources to
provide additional grant assistance for these students.
Part B--Hurricane Katrina Higher Education Recovery
HURRICANE KATRINA RELIEF
The Secretary is required to waive or modify certain
provisions under the Higher Education Act related to student
financial assistance for students and postsecondary education
institutions receiving Federal financial assistance and
affected by Hurricane Katrina. Students who were enrolled in
affected institutions of higher education on August 29, 2005
and received grant or loan aid, and were not able to complete
the term, will not have to repay any of the funds they
received. Affected institutions will not be required to return
funds they received for or on behalf of affected students.
Federal loans made to students or to parents of students who
enrolled in affected institutions will be discharged or
canceled. The Secretary is also authorized to approve
modifications to Teacher Quality Enhancement Grants to enable
grantees to use funds to assist States and local education
agencies to recruit and retain highly qualified teachers in
affected schools and faculty at affected institutions.
Authority to approve modifications of TRIO grants and grants
under part A or B of title III requested by the grantees is
also provided. The Secretary is given general authority to
accommodate other situations as they arise. These provisions
will sunset on September 30, 2006.
PROGRAMS REPEALED
The bill repeals a number of programs, including the
following, because they are ineffective, duplicative, or have
not been funded for several years:
Learning Anytime, Anywhere Partnerships
Recruitment and Retention Grants
Academic Achievement Scholarships
Urban Community Service program
Preparing Teachers to Use Technology
Commission on Web-Based Education
II. Background and Need for the Legislation
This legislation is needed because authorization for the
programs in the Higher Education Act expires at the end of
December 2006. The Federal Government must maintain its
commitment to broad access to higher education for all
students, despite their background.
Our economy is on the threshold of its most significant
transformation in history. In the next 10 years, about 12
percent of the workforce will be leaving their careers behind
for retirement. In addition, today's jobs are requiring more
from workers than ever before. It is estimated that by 2015,
three-quarters of all workers will have some postsecondary
education or training, but by 2020, we will need 14 million
more skilled workers in this country than we are currently able
to provide.
As we stand on the brink of this workforce revolution, the
reauthorization of the Higher Education Act enables us to meet
the coming challenges head on. American students will need a
quality postsecondary education to compete in the global
economy. The Higher Education Act is part of the comprehensive
approach to education and training that this country needs.
This approach must effectively coordinate programs, such as the
Workforce Investment Act, the Perkins Career and Technical
Education Act and other Federal education and training
initiatives, to ensure that we remain competitive.
The American postsecondary education system is renowned
throughout the world. More than 6,000 colleges and universities
enroll more than 14 million students, providing access to all
types of academic and training programs. Enrollment in
postsecondary education has increased over the past 30 years,
and it is expected to continue to do so, particularly in 2-year
programs. By 2008, the number of students enrolled in
postsecondary education will have doubled from 1970 levels. At
the same time, the face of today's average college student is
changing. The ``average'' student enrolled in postsecondary
education or training these days is most likely to be older
than 24 years old. They are more likely to be independent and
they are more likely to be female.
Periodic reauthorizations of the Higher Education Act
provide the opportunity to update the legislation, improve
existing programs and address newly identified needs. S. 1614
makes changes to the law that will help today's students attend
and succeed in college, such as providing additional grant
assistance to the neediest students, permitting greater access
to distance education, and ensuring that students have reliable
information about the cost of attending college. S. 1614
improves accountability in the higher education programs and
promotes partnerships among institutions of higher education,
States and businesses.
III. Legislative History and Committee Action
At the beginning of the 109th Congress, Senators Enzi,
Frist, and McConnell introduced S. 9, The Lifetime of Education
Opportunities Act of 2005: Preparing America to Compete in the
21st Century and Beyond. The purpose of the bill was to improve
America's competitiveness in the global economy by improving
and strengthening Federal education and training programs. With
respect to postsecondary education, the bill promoted improved
academic preparation for postsecondary education; set high
expectations for all students; promoted lifetime learning
opportunities for students at all stages in life; encouraged
quality educational opportunities for all students, including
nontraditional students; promoted improved accountability in
the administration of the student financial aid programs;
called for simplification of the student aid application
process; and encouraged Congress to address the rising costs of
higher education.
Prior to the introduction of a bill to reauthorize the
Higher Education Act, the committee held five hearings and one
roundtable discussion:
HIGHER EDUCATION ACCREDITATION: HOW CAN THE SYSTEM BETTER ENSURE
QUALITY AND ACCOUNTABILITY (FEBRUARY 26, 2004)
Four witnesses appeared before the committee: Steven Crow,
the Executive Director of the Higher Learning Commission of the
North Central Association of Colleges and Schools, Jeffrey
Wallin, President of the American Academy for Liberal
Education, Jerry Martin, Chairman of the American Council of
Trustees and Alumni, and Robert Potts, President of the
University of North Alabama.
HIGHER EDUCATION AND THE WORKFORCE: ISSUES FOR REAUTHORIZATION OF THE
HIGHER EDUCATION ACT (MARCH 4, 2004)
Charles Bohlen, President of Laramie County Community
College, James Votruba, President of the University of Northern
Kentucky, Beth Buehlmann, Vice President and Executive Director
of the Center For Workforce Preparation, U.S. Chamber of
Commerce, Diana G. Oblinger, Executive Director of Higher
Education, Microsoft Corporation, and Ellen O'Brien Saunders,
Executive Director, Washington State Workforce Training and
Education Coordinating Board testified before the committee.
A YEAR-'ROUND COLLEGE CALENDAR: ADVANTAGES AND IMPEDIMENTS (MARCH 9,
2004)
The Subcommittee on Children and Families of the Committee
on Health, Education, Labor, and Pensions heard testimony from
Stephen Trachtenberg, President of The George Washington
University, India McKinney, a student at Vanderbilt University,
Michael Lomax, President of Dillard University, who spoke on
behalf of the United Negro College Fund, Virginia Hazen,
Director of Financial Aid at Dartmouth College, and Margaret
Heisel, Associate to the Vice President and Executive Director,
Admissions and Outreach, University of California Office of the
President.
LIFELONG EDUCATION OPPORTUNITIES (APRIL 14, 2005)
Two sets of witnesses provided testimony at the hearing.
The first panel consisted of the Secretary of Education,
Margaret Spellings, and the Secretary of Labor, Elaine L. Chao.
The second panel included the Governor of Kansas, Kathleen
Sebelius, the Governor of Kentucky, Ernie Fletcher, the
Director of the Washington Office of the Greystone Group,
formerCongressman Steve Gunderson, the Executive Director of
the Business-Higher Education Forum, Brian Fitzgerald, and the Vice
President of the Colleges of Worcester Consortium, Pamela Boisvert.
PROVIDING QUALITY POSTSECONDARY EDUCATION: ACCESS AND ACCOUNTABILITY
(APRIL 28, 2005)
Five witnesses appeared before the committee: Kati Haycock,
Director of The Education Trust, Trinity Thorpe a student at
Pepperdine University, Brian Bosworth, President of
FutureWorks, Robert Shireman, Director of The Institute for
College Access and Success and Phillip Van Horn, President of
the Wyoming Student Loan Corporation.
ROUNDTABLE--HIGHER EDUCATION AND CORPORATE LEADERS: WORKING TOGETHER TO
STRENGTHEN THE AMERICAN WORKFORCE (MAY 19, 2005)
The committee heard testimony from Louis Caldera, President
of the University of New Mexico, Robert Craves, a founder of
Costco Wholesale Corporation and currently CEO and President of
the Washington Education Foundation, Edward Hoff, Vice
President-Learning, IBM, Edison Jackson, President, Medgar
Evers College, the City University of New York, Patricia
McGuire, President of Trinity College in Washington, DC, James
Mullen, President and CEO of Biogen IDEC, Laura Palmer-Noone,
President of the University of Phoenix, Walter Nolte, President
of Casper College, Charles Reed, Chancellor of the California
State University and Patrick Sweeney, President and CEO of Odin
Technologies. Rev. Michael Sheeran, President of Regis
University had planned to testify but was unable to. He was
invited to submit a statement for the record.
RECOMMENDATIONS AND COMMENTS
In addition, the committee considered the written
recommendations and comments from over 100 organizations and
institutions involved in the field of higher education.
On September 6, 2005, Senator Enzi introduced the Higher
Education Amendments of 2005, S. 1614. The bill was cosponsored
by Senator Kennedy.
A. AMENDMENTS ADOPTED BY VOICE VOTE
On September 8, 2005, the committee met to consider S.
1614. The committee took action on one amendment, unanimously
adopting an amendment in the nature of a substitute by Senator
Enzi that makes technical changes. Two additional amendments
were offered and subsequently withdrawn. The bill was approved
by a roll call vote of 20 yeas to 0 nays and ordered to be
reported with an amendment in the nature of a substitute.
B. ROLL CALL VOTE
The bill as amended was reported favorably by a vote of 20
yeas to 0 nays.
Yeas: Enzi, Gregg, Frist, Alexander, Burr, Isakson, DeWine,
Ensign, Hatch, Sessions, Roberts, Kennedy, Dodd, Harkin,
Mikulski, Jeffords, Bingaman, Murray, Reed, and Clinton.
C. AMENDMENTS OFFERED AND SUBSEQUENTLY WITHDRAWN
Two amendments were offered, discussed, and subsequently
withdrawn:
1. Senator Gregg offered and then withdrew an amendment to
target the supplemental grant aid provided in the bill for
ProGAP recipients more heavily toward the neediest Pell grant
recipients.
2. Senator Clinton offered and then withdrew an amendment
to increase the income protection allowance provided for
independent students in the Federal need analysis formula.
IV. Explanation of Bill and Committee Views
TITLE I--GENERAL PROVISIONS
In amending Title I of the Higher Education Act of 1965,
the committee intends to update the law to reflect the dramatic
changes in the field of higher education over the past 10
years. With a growing proportion of students attending
concurrent or dual enrollment programs, or through distance
education programs, the committee amends the definitions of
higher education to incorporate these larger trends. The
committee also changes certain provisions to reduce the
potential for fraud and abuse within the Federal higher
education programs.
INSTITUTIONS OF HIGHER EDUCATION
In the definition of an institution of higher education,
the committee has included a reference to the section of the
act that specifies that students who have completed a secondary
education in a home school setting that is treated as a home
school or private school under State law are to be considered
regular students. This was done to clarify that an institution
of higher education may admit home schooled students without
endangering the institution's eligibility to participate in the
higher education programs under this act.
The committee action is based on guidance issued by the
Department of Education in a ``Dear Colleague'' letter that
stated, ``An institution can admit most home-schooled students
as regular students without jeopardizing its eligibility to
participate in the title IV, HEA student financial assistance
programs. The Department considers that a home-schooled student
is beyond the age of compulsory school attendance if the State
in which the institution is located does not consider the
student truant once he or she has completed a home-school
program.''
DUAL AND CONCURRENT ENROLLMENT
The committee recognizes the significant growth in dual and
concurrent enrollment programs, which enable some secondary
students to earn postsecondary credit in a program of study at
an institution of higher education. According to data from the
National Center for Education Statistics, in school year 2002-
03, 71 percent of high schools offered dual credit courses. In
response to this trend, the committee clarifies that students
in dual or concurrent enrollment programs may be admitted as
regular students in institutions participating in programs
authorized under the Higher Education Act of 1965.
FOREIGN MEDICAL SCHOOLS
The committee is concerned that a large proportion of the
student loan funds provided to students enrolled in foreign
medical schools are being used at foreign medical schools that
are primarily populated by American students. In general,
medical schools qualify to participate in the Federal Family
Education Loan program if at least 60 percent of their student
body is non-American and at least 60 percent of their students
or graduates taking the examinations administered by the
Educational Commission for Foreign Medical Graduates received a
passing score. However, current law contains an exemption to
this dual requirement for foreign medical schools that have a
clinical training program that was approved by a State as of
January 1, 1992. This exemption has resulted in an inordinate
number of students who attend otherwise non-qualifying
institutions receiving Federal student loans. Therefore, the
committee has removed the exemption.
DISTANCE EDUCATION
The National Center for Education Statistics (NCES) has
reported that in academic year 2000-01, 56 percent of all
institutions of higher education offered distance education
programs, and 68 percent either offered some online programs or
planned to offer such programs within 3 years. Between academic
years 1997-98 and 2000-01, enrollment in distance education
doubled, with over half of the enrollment occurring in public,
2-year institutions. While this information is somewhat dated,
it is the most recent data available from NCES and it does
provide important information about the current trend toward
expanded use of distance education in the postsecondary
education field.
The committee amends the ``50 percent'' rule to facilitate
the desire of many accredited institutions of higher education
to pursue distance education programs as a means to increase
postsecondary enrollment, reach adult learners and
``nontraditional'' students, and support access to
postsecondary education in rural areas.
In modifying the current limitation on distance education
enrollment, the committee retains the requirement that
institutions not enroll more than 50 percent of their students
in correspondence courses, and that institution not offer more
than 50 percent of their courses through correspondence.
However, the committee establishes clear requirements for
institutions offering distance education programs to be exempt
from the limitations that apply to correspondence courses.
These minimum standards required to be met by an institution to
waive the ``50 percent'' rules will help guard against fraud
and abuse by schools participating in the Federal student aid
programs. These standards are: the institution (1) must be
accredited by an agency or association recognized by the
Secretary that has distance education within its scope of
recognition; (2) would otherwise be eligible to participate in
title IV programs; (3) has not had its participation in the
title IV programs limited, suspended, or terminated in the
previous 5 years; (4) has not had, or failed to resolve, an
audit finding that resulted in the institution being required
to pay a fine of more than 25 percent of the total funds the
institution received under title IV of the Higher Education
Act; and (5) has met the requirements of section 487(d), having
to do with teach-out plans in the case of a school's closure.
The committee believes these changes will help provide
appropriate flexibility for institutions of higher education to
expand distance education offerings and reach more students
while ensuring the integrity of the Federal student assistance
programs. The committee does not believe these requirements
will limit the participation of new, high-quality distance
education providers.
ALCOHOL AND DRUG ABUSE PREVENTION GRANTS
The problem of underage drinking, binge drinking, and drug
use in our Nation's institutions of higher education and by
students in the communities surrounding such institutions is of
great concern to the committee. One thousand seven hundred
college students between the ages of 18 and 24 die each year
from alcohol-related injuries. On college campuses, the
combination of social and environmental influences creates a
culture of drinking that passively or actively promotes the use
of alcohol. Many college students themselves avoid the unsafe
use of alcohol and drugs. However, they are still at great risk
to suffer the effects of the high-risk behaviors of their
peers.
Many students who engage in underage drinking, binge
drinking, or drug use are harming themselves as well as those
around them. Students who do not use, or who drink legally
andmoderately, frequently suffer secondhand effects from the behavior
of other students who drink too much. The immediate and long-term risks
associated with alcohol and drug use underscore the need for effective
prevention programs. Some colleges and universities have broad
prevention approaches that combine traditional educational programs
with strategies aimed at changing the environment on campus and in
surrounding communities. This approach recognizes that student behavior
is influenced at multiple levels: personal, peer, institutional, and
community. This is an approach supported by the committee and
encouraged in this bill.
PERFORMANCE-BASED ORGANIZATION (PBO) FOR FEDERAL STUDENT FINANCIAL
ASSISTANCE
The committee applauds the efforts since the last
reauthorization to implement the PBO. Schools and individuals
have benefited from improved efficiency in originating,
servicing and processing grant and loan aid. The ombudsman has
provided needed guidance to students struggling to navigate the
complex system. There is strong support for continuation of
these efforts to make further progress in the delivery of
student financial aid.
COST OF HIGHER EDUCATION
The committee feels strongly that the rising cost of higher
education is undermining the Federal commitment to making
college accessible and affordable. Although Federal
expenditures for higher education are at an all time high, the
purchasing power of Federal programs has been losing ground as
colleges and universities continue to increase tuition and fees
at rates much higher than the rate of inflation.
The College Board, which produces a highly respected annual
survey of college costs, reported in its 2004 report that the
average tuition and fees for a public, 4-year institution of
higher education had increased by 10.5 percent from the
previous year. Even after adjusting for inflation, tuition and
fees have increased by more than 50 percent in the 10 years
preceding the 2004-05 academic year.
The rapid increase in college costs has negatively impacted
the ability of students to afford a college education, for
students and parents to save sufficiently to prepare for the
costs of college, and has required an increasing number of
students to borrow high-interest loans from non-Federal
programs, adding significant debt burden to students and their
parents.
Diverse explanations have been offered, but the
consequences of these rapid increases have not been any less
dramatic. In 1995, the maximum Pell grant award was $2,340.
Since then, the maximum grant has increased to $4,050, yet many
students still find themselves borrowing additional funds to
meet the cost of attendance. While the overwhelming majority of
public institutions charge tuition and fees of less than
$9,000, the majority of private schools (both proprietary and
independent) assess tuition and fees in excess of $15,000.
Despite historic increases in Federal student assistance
programs, cost is surpassing the ability of students to pay for
their education, even while receiving the maximum Federal
assistance available to them.
As a result, many parents and students who have saved for
college find themselves borrowing additional funds to meet the
costs of college. The Advisory Committee on Student Financial
Assistance suggests that cost accounts for up to 48 percent of
college-ready high school seniors not enrolling in a 4-year
institution of higher education, and for 22 percent of college-
ready seniors not enrolling in any postsecondary education at
all.
To address this challenge, the committee includes several
separate provisions intended to provide students and their
parents with better information about the cost of college. The
committee expects this information to help provide students and
their parents with a realistic set of expectations about the
cost of postsecondary education, as well as introduce some
incentives for institutions to control the cost of attendance.
The public availability of this information is expected to
support institutions and States that are committed to
maintaining access to affordable higher education.
The committee has taken several steps to ensure students
and parents have access to information about the cost of
college, by making information available to compare
institutions, as well as to create an index that tracks the
affordability of higher education. The committee believes this
additional information will help parents and students make
well-informed decisions about postsecondary attendance, so the
greatest number of students can attend and succeed in
postsecondary education.
While the committee recognizes that many private sector
firms have produced high-quality informational products with
respect to the cost of college, the committee believes the
Department of Education can also provide added value in making
better use of the information collected and made available
through the college opportunities online (COOL) Web site. The
committee expects the added emphasis on the Department's Web
site as a means for families and students to obtain information
about postsecondary education will result in an effort to make
such resources more user-friendly.
TITLE II--TEACHER QUALITY ENHANCEMENT
With the passage of the No Child Left Behind Act, Congress
took an important step to ensure that all of the Nation's
children are taught by highly qualified teachers. The committee
believes that improving teacher quality is an important and
effective means to increase student achievement. By
strengthening and developing the State and partnership grants
in title II, the committee bill provides various mechanisms to
our Nation's educators to receive the training and support
necessary to strengthen our Nation's early childhood programs,
and elementary and secondary schools. The committee expects
activities under title II of this act will complement the
larger teacher preparation efforts in title II of the No Child
Left Behind Act, as well as other relevant State efforts.
HIGH NEED ACADEMIC SUBJECT AREAS AND HIGH NEED AREAS
Throughout title II, the committee references high-need
academic subject areas (such as reading, mathematics, science,
and foreign languages) and high-need areas (such as special
education, language instruction educational programs for
limited English proficient students, and early childhood
education). Studies indicate that a shortage of highly
qualified teachers exists nationally in the specific subject
areas and services indicated above. Nevertheless, it is not the
committee's intent for teacher training, and professional
development supported under this title to be limited to these
subjects and service areas alone, since shortages in particular
subject and service areas may vary from State to State, from
district to district, or from school to school.
EARLY CHILDHOOD EDUCATOR
The committee recognizes that quality early childhood
education programs are staffed by educators who are fully
competent in all the essential domains of early childhood
development including cognitive, social, emotional, and
physical development. Given the great variation in the
governance, funding, and standards of early childhood education
programs including, Head Start, Early Head Start, State pre-
kindergarten programs, local education agency pre-
kindergarten, and others, the committee has not specifically
provided a definition of a fully competent early childhood
educator. It is the committee's intent that early childhood
educators meet the standards and qualifications of the program
in which they are teaching and that all early childhood
education programs ensure that young children receive a
comprehensive early childhood education that prepares them to
succeed in early elementary education and beyond.
PRELITERACY AND PRE-NUMERACY
The committee believes quality early childhood education
programs are comprehensive programs that address children's
social, emotional, and physical development, as well as their
cognitive development. In particular, research has shown the
critical importance of quality early childhood instruction that
addresses language, early literacy, and pre-numeracy skills for
school readiness and later academic achievement. Effective
early reading and pre-numeracy programs delivered by fully
competent teachers are vital for later reading and mathematics
proficiencies. All early childhood educators must be equipped
with an understanding of how oral language, pre-reading and
early literacy develops as well as pre-numeracy skills. Early
childhood educators need professional development throughout
their careers to strengthen their knowledge and skills for
promoting children's language, pre-reading, and pre-numeracy,
as well as other cognitive areas.
ELIGIBLE PARTNERS
The bill further focuses on teaching skills and learning
strategies by including as eligible partners in the partnership
grants academic departments such as psychology, human
development, or other departments with comparable expertise in
the disciplines of teaching, learning, and child and adolescent
development. Other academic departments are also eligible to
participate. Additional entities added as eligible partners
include a science-, mathematics- or technology-oriented entity;
an early childhood education program; an educational service
agency; and a consortium of local educational agencies.
It is the intent of the committee that community colleges
and tribal colleges be eligible to participate in the Teacher
Quality Partnership grants. These institutions provide a
critical entry point for many teachers and every effort should
be made to strengthen the programmatic ties to 4-year
institutions.
TEACHING SKILLS
Current law provides an allowable use of funds for the
partnership grants to prepare teachers with the knowledge and
skills to work with and involve parents in their children's
education, as well as to provide instruction to diverse student
populations, including students with disabilities and with
limited English proficiency. The committee, however, believes
that all teachers should be prepared to work with and involve
parents, as well as provide instruction to diverse student
populations, and that such preparation is paramount to
effective teaching for all teachers. Accordingly, the committee
has defined the term ``teaching skills'' to include the ability
to communicate and work with parents, as well as the ability to
increase student achievement, focus on identification and
tailoring of academic instruction to students' specific
learning needs, (particularly students with disabilities,
students with limited English proficiency, and gifted and
talented students), use strategies based on scientifically
based research, and manage a classroom effectively. Under this
legislation, both State and eligible partnerships must use
title II funds to promote effective teaching skills.
TEACHING STUDENTS WITH LIMITED ENGLISH PROFICIENCY
The committee has made several improvements in title II to
further the success of students with limited English
proficiency by focusing on the instruction the students receive
in the classroom and on the instruction that teachers receive
in their preparation program. For example, the definition of
teaching skills now highlights that academic instruction should
be tailored to students' specific learning needs, particularly
for students with limited English proficiency. The bill also
prioritizes increasing the number of highly qualified teachers
who teach students with limited English proficiency. Further,
partnerships may use their grant funds to increase the number
of faculty at institutions of higher education with expertise
in instruction of students with limited English proficiency to
better prepare teachers to instruct these students.
RECRUITMENT, RETENTION, AND ADVANCEMENT STRATEGIES
Teacher attrition undermines teacher quality and drives
teacher shortages. According to the National Commission on
Teaching and America's Future, one-third of beginning teachers
leave the profession within 3 years, and nearly one-half leave
within 5 years. In high poverty schools, turnover rates are
even worse--approximately one-third higher than the rate for
all teachers. Research also shows that teachers who leave are
likely to have greater skills than those who stay.
In order to ensure the quality and capacity of high quality
teachers, the committee encourages and supports the training
and development of our Nation's teachers, who are the most
important in-school influence on student learning. The
committee includes language that permits the grantees to use
scholarships and support for students involved in undergraduate
teacher preparation programs. These scholarships and support
services provide incentives for individuals to enroll in and
complete teacher preparation programs and subsequently teach in
high-need local educational agencies. The language also
provides follow-up services for former scholarship recipients
and encourages eligible partnerships to recruit minority
students to become highly qualified teachers. This language
strengthens teacher training and recruitment to alleviate the
demand for high quality teachers.
TEACHER RECRUITMENT
The committee has included teacher recruitment as an
allowable use under State and partnership grants rather than
retaining a separate grant program for recruitment. The
committee continues to believe that teacher recruitment is
important, but believes the need can be met more effectively,
given the overall size of the title II programs within the
Higher Education Act, by providing more flexibility with
respect to allowable activities under the State and partnership
programs.
RURAL AREAS
The committee continues to recognize the unique challenges
that school districts in rural areas face, particularly in
recruiting and retaining high-quality teachers. Some of the
barriers to recruitment and retention include low salaries,
geographic, social, and professional isolation, housing
shortages, poor physical working conditions, a paucity of
teacher preparation programs targeted to rural schools, limited
opportunities for professional development, and the necessity
for teachers to teach more than one grade or subject. Each of
these factors contributes to the reality that teachers in rural
areas tend to be less educated, less experienced, younger, and
more likely to teach in fields outside their area of
certification.
To help address these challenges, the committee authorizes
funds under this section to be used to provide grants to rural
school districts for the recruitment and retention of teachers
in rural school districts. Rural school districts, or consortia
of rural school districts, may use funds to implement a range
of recruitment strategies, such as tuition assistance, loan
forgiveness, housing assistance, and financial incentives for
working in areas of greatest need, as well as retention
strategies, such as mentoring programs and ongoing
opportunities for professional growth and advancement. In
addition, the bill encourages rural school districts to form
partnerships with institutions of higher education to help
prepare beginning teachers in rural areas and to assist
teachers in rural areas to become highly qualified.
PERFORMANCE BASED COMPENSATION AND TEACHER ADVANCEMENT SYSTEMS
States are permitted to assist local educational agencies
in developing performance based compensation systems and
teacher advancement systems that reward teachers who increase
student achievement and provide teacher mentoring for new
teachers and access to ongoing professional development
opportunities. The committee recognizes that one promising
model for such a system is the Teacher Advancement Program
(TAP), a comprehensive whole schoolreform that includes four
elements: multiple career paths; ongoing, applied professional growth;
instructionally focused accountability; and performance-based
compensation for teachers. TAP is currently operating in over 100
schools in 11 States and the District of Columbia. Most schools that
have implemented TAP report that student achievement is increasing and
that collegiality among teachers is high. Schools also report that TAP
has reduced teacher turnover and attracted high-quality teachers to
hard-to-staff schools.
Furthermore, the committee has authorized States to assist
efforts to participate in a nationally recognized advanced
credentialing system as a permissible State grant activity. The
committee believes that quality teaching will be advanced
through participation by teachers in a nationally recognized
credentialing system, such as the National Board for
Professional Teaching Standards, which provides a national
voluntary system of certifying teachers who meet high standards
of knowledge and professional practice, or the American Board
for Certification of Teacher Excellence, which is developing a
Master Teacher certification for experienced teachers who have
demonstrated outstanding classroom effectiveness and who
possess superior subject area mastery.
SUPPORT PROGRAMS FOR NEW TEACHERS
Title II strengthens teacher training partnership grants by
requiring the creation of support programs for new teachers
during their first 3 years of teaching. This program will
provide new teachers with skills in educational interventions
and knowledge of scientific research on teaching and learning,
and will support new teachers through high quality teacher
mentoring, professional development, and interdisciplinary
collaborations.
A focus on knowledge and application of teaching skills and
methods of student learning based upon scientifically based
research will equip teachers to understand and respond
effectively to diverse student populations, including students
with disabilities, limited English proficient students, and
students with different learning styles or other special
learning needs.
INDUCTION
The committee intends the induction programs described in
the bill to be formalized and comprehensive programs designed
to provide up to 3 years of support to beginning teachers to
improve teaching skills and promote retention in the teaching
field. Induction includes high quality mentoring by experienced
and qualified mentors, structured collaboration time with
teachers in the same department, grade, or field, structured
meeting time with administrators, and professional development
activities. Induction programs may also provide reduced
teaching loads, the support of a teaching aide, orientation
seminars, and regular evaluation of the teacher inductee, the
mentors, and the overall program.
RESIDENCY PROGRAM
Teacher turnover regularly drains schools of their most
important resource: qualified educators. This is a critical
moment for us to address persistent teacher attrition and to
improve teacher retention. The committee supports the
development of educators so they have not only the credentials
but also the skills and training to be truly effective in the
classroom.
This legislation allows partnerships to provide support for
new teachers through comprehensive induction programs, such as
a residency program. Research consistently shows that induction
programs reduce the number of teachers who leave their schools
or the profession.
Residency programs also include information sharing among
teachers, principals, administrators, and participating higher
education faculty. This can provide essential instructional
leadership and classroom support for teachers during induction
and beyond.
TEACHER MENTORING IN RURAL DISTRICTS
The committee recognizes the importance of teacher
mentoring and that it may be particularly difficult to
establish and maintain mentoring relationships in isolated,
rural school districts, but that mentoring is no less important
in such school districts. The committee believes that every
effort should be made to ensure that rural teachers can fully
participate in mentoring activities, including providing these
opportunities through online or electronic technology, as well
as other means.
INNOVATIVE STRATEGIES TO TRAIN NEW SCHOOL LEADERS
The committee includes, as an allowable use of funds for
States and partnerships, innovative strategies to prepare new
leaders, recognizing that school leaders have a significant
impact on student achievement.
The committee expects that States and partnership grantees
using Federal funds for this purpose will work with effective
programs that demonstrate quantifiable results, such as the New
Leaders for New Schools program. The New Leaders program
recognizes several core values: (1) every child can achieve the
highest levels of academic excellence; (2) delivering high
quality public education to all children is critical and
affords every child the full range of opportunities in life;
(3) great schools are led by great principals; (4) principals
coach and inspire teachers to reach and teach every child and
collaborate with their parents, families, and communities to
make schools successful; and (5) with access to outstanding
public schools, children will have a greater ability to develop
the competence, critical thinking, social and civic skills to
reach their highest potential.
The committee therefore encourages States and partnership
grantees to consider working with these programs due to their
historic success in recruiting, training, and supporting
outstanding leaders for high-need public schools. These
programs have clearly shown their ability to foster higher
levels of academic achievement, greater college readiness, and
increased graduation rates.
NUMBER OF PARTNERSHIP AWARDS
As explained in section 204, an eligible partnership is
limited to one partnership grant during a 5-year period. The
committee does not intend, however, to preclude an individual
partner in a funded partnership grant from entering into
another eligible partnership consisting of new members during
that same 5-year period. For example, a State university might
partner with a group of local education agencies in one part of
the State for one partnership grant and with another, different
group of local education agencies in another part of the State
for another partnership grant.
PROGRAM EFFECTIVENESS
The committee believes it is critical for a State to
evaluate the effectiveness of its teacher preparation programs,
and particularly, the impact of such programs on students'
academic achievement. How a State measures the effectiveness of
the teacher preparation programs, however, is just as
important. A State must measure the effectiveness of the
teacher preparation programs in a manner that produces
meaningful and useful information to both the State and to the
teacher preparation programs.
Many States are already collecting critical information
about student achievement. But in order to evaluate the
effectiveness of teacher preparation programs in promoting
student achievement, States need to do more than just collect
data. Many States have already begun to develop comprehensive,
integrated data systems. But many other States are constrained
by limited budgets and competing policy priorities. The
committee recognizes that States are at different stages in
developing comprehensive data systems, but believes it is
critical that all States have the capacity to accurately
measure the effectiveness of teacher preparation programs and
professional development activities.
Accordingly, this bill requires a State that applies for a
grant under this section to describe its capacity to measure
the effectiveness of teacher preparation programs using
statewide data systems. If a State does not have the current
capacity to measure the effectiveness of teacher preparation
programs, it must describe the activities it will undertake to
either enhance or expand the integration of existing data
systems to better measure the effectiveness of teacher
preparation programs, or in the event such data systems do not
exist, plans to develop such a system. Recognizing that some
States may need Federal resources to help build the capacity,
the committee authorizes States to use funds under this section
to enhance or expand the integration of existing data systems,
or develop such a system to better measure the effectiveness of
teacher preparation programs and professional development
activities.
The committee believes that stronger accountability and
comprehensive, integrated data systems will not only provide
answers to the questions related to the impact of teacher
preparation programs on student achievement, but will provide
educators, policymakers, and teacher preparation programs with
critical information on practices that lead to consistent
student achievement gains.
TITLE III--INSTITUTIONAL AID
Institutions that serve students historically denied access
to postsecondary education because of race or national origin
play an important role in higher education. They help preserve
cultural traditions. At the same time they offer affordable,
high quality college education to thousands of students as well
as provide much needed job training. These institutions also
provide crucial support services and add hope to communities
that have high rates of poverty and unemployment. Recognizing
the purpose and importance of these colleges and universities,
it is the intent of the committee to reauthorize and strengthen
programs supporting institutional aid for institutions with
substantial percentages of high-need students, Tribal Colleges
and Universities, Alaska Native and Native Hawaiian-Serving
Institutions, Native American-Serving Institutions, and
Historically Black Colleges and Universities.
AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES
There are 34 federally-supported Tribal Colleges and
Universities (TCUs) in the United States. They educate over
30,000 students by offering associate's, bachelor's, and
master's degrees as well as over 200 vocational certificate
programs. Despite their significance, historically, TCUs
possess limited financial resources. This hinders their
capacity to maintain and update facilities and instructional
resources. In today's world, a high quality education is very
much dependent upon the technology and resources available to
students. The committee recognizes TCUs do not have sufficient
financial ability to provide these opportunities without
Federal assistance.
To strengthen TCUs' capacity to offer quality educational
opportunities to their students, the committee made changes to
the way funding is distributed under this section. The
committee gives the Secretary the authority to reserve up to 30
percent of awardable funds to address construction needs. If
reserved, grants of not less than $1 million will be awarded to
institutions for maintenance and renovation. The remaining
money shall be awarded so that 60 percent goes to eligible TCUs
by formula using the Indian student count and 40 percent goes
in equal shares to those same institutions. The committee
eliminates the wait-out period for these schools and
establishes a minimum award of $500,000.
NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS
The term ``Native American'' can be broad and encompassing.
For the purpose of this legislation, the committee intends the
term to mean a person having origins in any of the original
peoples of North America and who maintains cultural
identification through tribal affiliation or community
recognition. This term may include Alaskan Natives and Native
Hawaiians.
Native Americans are attending college at greater rates
than ever and many of these students are attending nontribal
institutions of higher education. In 2002, 42 public and
private institutions of higher education served Native American
student populations of 10 percent or greater. However, despite
the increasing number of Native American students eligible for
college enrollment, only 11 percent of the population graduates
with a bachelor's degree orhigher. Moreover, Native American
students are disproportionately enrolled in 2-year colleges, and are
much less likely to finish college than their non-Native American
peers. Native American student educational attainment continues to lag
far behind that of the total student population. Many Native American
students come from families with low incomes, have parents with low
levels of education, and are less likely to have completed a pre-
college curriculum in high school.
With increasing enrollment, nontribal institutions of
higher education that serve large populations of Native
American students require resources to improve and expand their
capacity to serve the unique and diverse needs of their Native
American student population. To assist nontribal institutions
of higher education better serve Native American students, the
committee has established a competitive grant program for those
institutions serving a Native American student population of 10
percent or greater. Grants will support curriculum development
and academic instruction, faculty development, and student
services such as academic tutoring and counseling. The
committee recognizes that the grant program will improve the
capacity of Native American-serving, nontribal institutions of
higher education to provide quality educational opportunities
for Native American students to narrow the educational
attainment gap and to better prepare students to meet the
demands of a competitive workforce.
HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
The committee believes there is great value in supporting
programs for historically black colleges and universities
(HBCUs). Although the Nation's HBCUs represent less than 5
percent of all the Nation's colleges and universities, they
award almost 30 percent of all baccalaureate degrees received
by African-Americans. Further, in some areas of science, math,
and engineering, HBCUs account for more than half of all such
degrees awarded to African-Americans. HBCUs also greatly
contribute to the overall percentage of graduate and
professional degrees earned by African-Americans. Nine of the
top 10 colleges that graduate the most African-Americans who go
on to earn Ph.D.s are HBCUs. Xavier University's graduate
programs alone produce a quarter of the Nation's African-
American pharmacists and send the largest number of African-
American students on to medical schools.
TITLE IV--STUDENT ASSISTANCE
PELL GRANTS
The committee recognizes that Pell grants are the
foundation for all need-based aid. In the 2003-04 award year,
the $12.7 billion investment in the Pell grant program funded
5.1 million students with average grants of $2,466. By making
small changes to the program, it is the committee's intent to
increase the utility of Pell grants in ensuring that more low-
income students are successful in postsecondary education.
The committee heard testimony from both traditional
students and students who are working adults that they would
like to attend school year-round so they can complete their
education earlier. However, these students have been unable to
accelerate their programs because of financial need; they have
been able to receive only one scheduled Pell grant award during
an award year. Although the Secretary is authorized to permit a
student to receive two Pell grants during 1 award year on a
case by case basis, the authority has not been exercised. The
committee's intent is to ensure that students enrolled at least
half-time in a 2-year or 4-year program leading to an
associate's or bachelor's degree are able to receive up to two
Pell grants in a single award year to enable them to accelerate
completion of their educational programs.
The committee also established that a student would have
eligibility for Pell grants for 18 semesters or an equivalent
period of time if semesters are not used. Students should be
able to complete an undergraduate degree in 18 semesters.
trio programs
The committee respects the work of the TRIO programs and
recognizes their critical contribution to the success of low-
income, first generation students as they apply, attend and
earn degrees from undergraduate and graduate institutions. To
ensure that information about the effectiveness of these
programs is publicly available, the committee requires each
program to submit information on its outcomes to the Department
of Education, and the Secretary to prepare and submit that
information to the Congress at least once every 2 years.
The committee recognizes the value of high quality programs
and expects that in evaluating applications, the Secretary will
award prior experience points only to those applicants that
have administered programs that demonstrate the highest
quality.
Controversy has arisen in recent competitions about
applications that have been received from different campuses of
the same institution of higher education, or multiple
applications from one institution of higher education to serve
distinct populations. It is the intent of the committee that a
college or university with more than one campus be eligible to
submit multiple applications and be considered for funding as
long as its applications are meritorious. It is also the intent
of the committee that an institution of higher education be
permitted to submit more than one grant to meet the needs of
particular populations within a program. Grantees may find that
they need dedicated programs to serve students with
disabilities or students with language needs; grantees should
be given the opportunity to complete separate applications,
each of which should be considered on its merits.
The committee has included as permissible services under
the TRIO programs activities specially designed for homeless
children and youth and for students who are in foster care or
aging out of the foster care system. These provisions are
intended to increase the availability of services that meet the
unique needs of homeless students and students in foster care.
For the first time, the committee has directed that some
activities become mandatory in the college access programs. For
Upward Bound and Talent Search, each grantee will be required
to provide tutoring, advisement in high school course selection
and postsecondary course selection where possible, assistance
in preparing for admissions tests and applications,assistance
in identifying financial aid opportunities (including resources for
locating public and private scholarships), and services to improve
financial literacy.
The committee understands that Talent Search programs often
cannot offer direct tutoring to all participants. However, if a
program does not provide tutoring, it should connect
participating students with appropriate tutoring available
directly in their high school or through community based
organizations to ensure that Talent Search participants are
making satisfactory progress in all academic subjects as they
prepare to apply to college.
Under Student Support Services programs, the committee
changed ``personal counseling'' in current law to ``consistent,
individualized, personal, career and academic counseling
provided by assigned counselors'' under permissible activities
to encourage Student Support Services programs to link students
with at least one adult with whom a student can establish a
long-term relationship.
While having the same person manage cases in the
Educational Opportunity Centers (EOCs) would be beneficial, the
committee understands that both the numbers of those served and
the types of services provided often do not allow that
consistency. The committee encourages EOCs to do all that they
can to facilitate relationships that provide the maximum
support to their clients.
GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS (GEAR
UP)
Since its creation in 1998, the GEAR UP program has proved
to be an impressive partner in improving access to
postsecondary education for the neediest students. However, the
committee has heard concerns that GEAR UP is difficult to
administer and therefore the committee changes some provisions
to make the program more flexible for institutions and helpful
to students, thereby enabling the program to improve access to
postsecondary education.
The committee is concerned about the growing number of
students requiring remedial courses in postsecondary education.
One way to address this concern is to ensure that more students
take rigorous and challenging coursework at the secondary
school level. Accordingly, the legislation requires States and
partnerships to encourage more students to enroll in a rigorous
and challenging curriculum. It is the hope of the committee
that appropriate academic support provided in pre-collegiate
programs, along with improved professional development
opportunities, will minimize the need for remedial education
for students and encourage timely progression toward college
degrees.
The committee also includes, as optional activities for
States, the use of GEAR UP funds in developing new secondary
school models and personalized dropout recovery programs to
improve secondary school completion and college success for
grades 11-14. New secondary school models are coherent, whole-
school designs that provide participating students with early
exposure to college level courses and environments. Such models
allow students to earn an associate's degree along with a high
school diploma (or within the next year) or transferable
credits toward a recognized postsecondary credential (such as
an industry certificate or apprenticeship). Also critical are
programs to help high school drop-outs gain access to college.
These funds could also be used to develop personalized dropout
recovery programs at community colleges that allow students to
complete a regular high school diploma and begin college level
work toward a recognized postsecondary degree. These State
level models will demonstrate ways to improve secondary school
completion and postsecondary success for grades 11-14 that can
be replicated in other States and districts.
The committee recognizes that homelessness puts students at
high risk of academic failure and dropping out of school;
therefore, the bill gives priority status to homeless and
foster students for the GEAR UP program. Furthermore, the
committee intends that GEAR UP programs coordinate activities
with school district liaisons designated under subtitle VII-B
of the McKinney-Vento Homeless Assistance Act. McKinney-Vento
school district liaisons are well-positioned to assist the GEAR
UP program with the identification, outreach, and recruitment
of homeless students, and can help GEAR UP programs maximize
available resources for these students.
Finally, the committee includes as permissible services
under the GEAR UP program activities specially designed for
homeless children and youth and for students who are in foster
care or aging out of the foster care system. These provisions
are intended to increase the availability of services that meet
the unique needs of homeless students and students in foster
care.
The committee makes it permissible for grantees to continue
providing services to students who have completed secondary
school and begun postsecondary education. The committee takes
this step to enable GEAR UP programs to make it possible for
students to receive ongoing, consistent support from the
program that will enable them to succeed in college.
The scholarship is a key component of the program, not only
because of the financial factor, but also because it serves as
an incentive for the participating student to complete an
academic program. The committee believes it is critical to the
success of students served by the GEAR UP program, particularly
State programs, that the scholarship funds be available to them
upon completion of a secondary degree or its equivalent. To
this end, the committee retains the requirement for State
grantees that they dedicate a significant portion of grant
funds for use in scholarship programs, which will be held in a
separate trust for each cohort of students served by the State,
or in the case of scholarships offered by partnership grantees,
by the partnership.
It is the consensus of the committee that it is appropriate
that students attending previous partnership schools may be
served in future grants as long as the application demonstrates
continued need for funding new activities. Therefore,
subsequent applications from current grantees should be
considered.
LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP (LEAP) PROGRAM
The committee believes that the changes made to LEAP,
including providing students with information about their
grants and implementing the Grants for Access and
Persistenceprogram, will strengthen LEAP by leveraging the financial
assistance provided under this program in a way that is more effective
for students, States, and the Federal Government. These improvements to
LEAP will broaden participation to include all stakeholders working to
increase the number of financially needy students who can access and
succeed in college.
The committee replaces the Special Leveraging Educational
Assistance Partnership authorized under the LEAP program with
Grants for Access and Persistence (GAP). By so doing, the
committee seeks to reinvigorate LEAP, the only program in which
the Federal and State governments work together to extend
higher education opportunities to financially needy students.
Under the GAP program, for LEAP funds above $30 million, States
will be rewarded--via higher levels of matching dollars--for
creating cohesive partnerships with colleges, foundations,
businesses, and early intervention and mentoring programs.
Access and persistence partnerships have three main purposes:
to provide low-income students with adequate grant aid to
ensure access to 4-year colleges and eliminate unmet need; to
provide early notification to low-income students of their
eligibility for financial aid; and to increase participation of
low-income students in early information, intervention,
mentoring, and outreach programs. Research on college access
programs with such components has shown that participating
students are more financially and academically prepared, and
thus more likely to enroll in college and persist to degree
completion.
The committee strongly encourages States to develop strong
and broad partnerships that contain philanthropies and
businesses, in addition to colleges and early intervention and
mentoring programs. The committee also specifically provides
States with flexibility in undertaking the new responsibilities
authorized under the GAP program, including the ability to
tailor the partnerships in ways that meet each State's
individual needs. The committee encourages the Secretary and
States to coordinate the early notification components of the
GAP program with other existing or new early financial aid
information efforts in order to avoid duplication of services
or information.
The committee encourages the Secretary to provide States
with sufficient flexibility to implement the GAP program
efficiently and to ensure that program regulations, such as
those regarding the portability of grants, align with existing
LEAP program regulations. In light of the changes to LEAP with
the addition of the GAP program, the committee also encourages
the Secretary to provide transition time to States to assure
the success of this new initiative.
THE HIGH SCHOOL EQUIVALENCY PROGRAM AND COLLEGE ASSISTANCE MIGRANT
PROGRAM
The committee recognizes that migrant students are among
the most disadvantaged youth in this Nation. Current estimates
place the dropout rate for migrant youth at between 50 and 60
percent. The High School Equivalency Program (HEP) and College
Assistance Migrant Program (CAMP) have been successful in
helping migrant students become productive members of society.
HEP provides intensive GED instruction and support services
to migrant students who have not completed high school. HEP
provides personal, academic and vocational counseling, health
services, stipends, and housing for residential programs. CAMP
grantees provide intensive support services to help migrant
students make the transition into college. CAMP offers academic
support, personal and career counseling, stipends,
scholarships, health services, and other supports necessary to
ensure that migrant students are successful in college.
The committee expands and improves the current programs so
that children of migrant and seasonal farmworkers can share in
the American dream and become more productive members of
society.
The Higher Education Amendments Act of 2005 expands
eligibility for CAMP to include ``immediate family members,''
who would include spouses and siblings who would benefit the
large migrant community. The bill also expands the definition
of allowable activities and support services to include
programs that ensure that migrant students succeed in earning
their GED and completing college, such as transportation, child
care and follow up services for CAMP students. The bill also
contains other important provisions including allowing for
technical assistance support and an increase in the amount of
minimum grants to ensure that programs receive sufficient
funding to be effective.
CHILD CARE ACCESS MEANS PARENTS IN SCHOOL
Changes to the Child Care Access Means Parents in School
(CCAMPIS) program reflect the committee's belief in the vital
importance of promoting and expanding campus-based child care
for low-income students to assist them in attending and
completing postsecondary education. To help promote greater
expansion of campus-based child care, the committee increased
the minimum grant award from $10,000 to $30,000, to take effect
when the amount appropriated for the program equals or exceeds
$20,000,000. The committee believes that raising the minimum
grant will increase the pool of institutions applying for and
receiving grants, which will help to expand campus-based child
care programs. Aligned with the committee's belief in the
importance of increasing the number of institutions offering
campus-based child care to low-income students, inclusion of a
funding trigger for increasing the minimum grant award reflects
the committee's aim of not wanting a reduction in the current
number of grantees participating in the program. The committee
also expands the definition of a low-income student to include
individuals who are enrolled in a graduate or professional
course or who are in the United States for a temporary period
of time.
Continued support for this program demonstrates the
committee's recognition of the benefits of campus-based
childcare to parents enrolled in postsecondary education. These
benefits include convenience of location, affordability, and
high quality care. Despite the importance of campus-based child
care, at current levels it is often not accessible to students,
especially those who are low income. The committee believes
that support for campus-based child care services serves the
central goal of Federal higher education policy of improving
access to postsecondary education.
FEDERAL FAMILY EDUCATION LOAN AND WILLIAM D. FORD FEDERAL DIRECT LOAN
PROGRAMS
Most of the changes made to these programs are contained in
title X; please see that section for these additional changes.
Loan benefit disclosure
It is the opinion of the committee that borrowers and
potential borrowers should be provided full disclosure on
benefits and repayment options. This should include, but not be
limited to, information on reductions in interest rates by
repaying a title IV loan by automatic payroll or checking
account deduction or by completing a program of on-time
repayment. Information should include any limitations on such
plans, explicit information on the reasons a borrower may lose
eligibility, and a description of the number or percentage of
borrowers who successfully participate in such benefit
programs.
FEDERAL WORK-STUDY
The committee recognizes the commitment of many colleges to
integrate community service into their curriculum and into
their institutional mission. In this reauthorization, the
committee maintains the 7 percent mandatory spending of Work-
Study funds on community service related jobs, but now gives
institutions the option of meeting the community service
requirement by providing a statement that says that 15 percent
of their entire student body is involved in community service.
In addition, the committee recognizes the effort involved in
connecting students with jobs and has increased the job
location and development dollar amount from $50,000 to $75,000
on each campus.
Work colleges
The bill includes language that encourages new models of
student organized volunteer service projects. The committee
believes that providing students the opportunity to participate
in volunteer service projects associated with institutions of
higher education is an excellent way to develop leadership and
civic engagement.
PERKINS LOAN PROGRAM
The committee extends the authority of the Perkins Loan
Program and the benefit extended through these loans to needy
students and encourages institutions to continue to participate
in this program.
The committee includes language that adds staff members
working full time in a pre-K or child care program licensed or
regulated by the State to the list of individuals eligible for
Perkins loan cancellation. Inclusion of these individuals for
loan forgiveness is meant to create an incentive for entry and
retention of highly-trained staff into State licensed or
regulated pre-K or child care programs. Today, over 11 million
children receive care outside of the home before kindergarten.
For millions of children, child care is their early learning
setting in addition to their homes. Given that current Federal
initiatives require State child care plans to develop a
professional development system for child care providers, the
committee believes it is important to fulfill this goal by
helping to provide such early educators with the assistance
they need to get a degree and to remain in the field.
The committee also recognized the needs of Tribally
Controlled Colleges in recruiting faculty and added those
faculty members to the population who are eligible for loan
cancellation.
Finally the committee chose to add speech and language
therapists and librarians, with a master's degree, who work in
a title I eligible elementary or secondary school or, in the
case of librarians, in a public library in a geographic area
that contains one or more eligible schools.
NEED ANALYSIS
The committee recognizes the tremendous needs of working
adults as they try to balance college with work and family
responsibilities. In recognition of these competing factors,
the committee amends the need calculation for students who are
attending less than half time and allows students to use full
cost of attendance calculations for no more than 3 semesters of
their undergraduate studies. Students, who are forced to reduce
their course load for not more than two consecutive semesters,
will still be eligible for the full Pell award for which they
are otherwise eligible.
The committee also allows an institution the ability to
include the cost of obtaining the first professional credential
as an allowable cost of attendance in needs analysis for
programs that require professional licensure or certification.
The committee clarifies that any qualified tuition savings
plan as defined by the IRS, or other prepaid plans offered by
States, are treated the same as a qualified education benefit.
Professional judgment
The committee applauds the appropriate use of professional
judgment when assembling a student aid package at an
institution of higher education. There are many areas that have
come to our attention during this reauthorization that we hope
can be addressed using professional judgment rather than by
making statutory changes that could have unforeseen negative
consequences. Students who have earned AmeriCorps education
awards and veterans who have earned benefits could have the
cash value of those awards considered over several semesters to
diminish any negative impact on other need-based aid.
Students and parents who are recently unemployed,
dislocated workers should have as simple an application process
as possible. Dislocated workers should be able to easily access
available financial aid so they can afford to go back to school
and get any additional training they may need to re-enter the
workforce. A worker who has lost his or her job and enrolls in
an educational program may well never regain his or her past
wages. Thus, the use of prior wages in the calculation may
reduce aid that is desperately needed to retrain for a new job.
Thecommittee therefore clarifies the definition of special
circumstances to enable dislocated workers to qualify for professional
judgment.
The committee simplifies the application process for
students with special circumstances who are often most at risk
of not enrolling in higher education. To this end, the
committee bill makes it easier for homeless youth to apply for
and receive financial aid by including homelessness as part of
the definition of a special circumstance that can qualify a
student for professional judgment, at the discretion of
financial aid administrators. The committee intends to further
expand the definition of special circumstances to include
students who are in foster care or wards of the court. The
committee also intends to further simplify the application
process for students in foster care and address current
confusion regarding the dependency status of such students. The
committee intends to clarify the definition of an independent
student to make it clear that students in foster care or
students who were in foster care prior to the age of 18 qualify
as independent students. The committee recognizes there is a
need to continue to refine categories of students who should be
considered independent.
Verification
While the bill would significantly simplify the financial
aid application process for students, the verification process
remains burdensome for students and institutions. The committee
therefore strongly encourages the Secretary to take steps
necessary to simplify the verification process and increase the
use of technology in verification.
GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE PROGRAMS
The committee is pleased with the efficient management of
the financial aid system overseen by the Department of
Education. To continue that smooth operation, the committee
clarifies that the compliance calendar should provide all users
with due dates for all reports and disclosures to be submitted,
clearly defining the recipients and required method of
transmittal and any other relevant information.
EZ FAFSA
The committee bill creates a new highly simplified paper
form, the EZ FAFSA, for low income students who are eligible
for the automatic zero Expected Family Contribution (EFC), the
income threshold of which is increased in the bill to $20,000.
The committee bill also phases out the full paper FAFSA and
requires the Secretary to use savings from doing so to increase
access for low-income students to electronic forms on the
Department of Education's Web site for the FAFSA, currently
known as FAFSA on the Web. It is the intent of the committee
that the Secretary will field- and pilot-test the EZ FAFSA
prior to full implementation, and that the paper EZ FAFSA will
be appropriately phased in as the full paper FAFSA is phased
out. In addition, the committee expects the Secretary to
maintain an easily downloadable and printable version of the
full paper FAFSA, to the extent feasible, that would allow
students who may not have adequate access to the Internet to
download, print, and submit such forms for full processing. To
otherwise help students eligible for the auto-zero gain access
to the simplified forms, the committee authorizes a free
telefile system for students without Internet access that the
committee encourages the Secretary to quickly test and
implement, if feasible.
The committee bill also creates highly simplified
electronic application forms to enable all students to answer
the minimum number of questions necessary, including only those
required by their State of residence. In addition, the
committee strongly encourages more States to accept the two
simplified need analysis formulas, the automatic zero EFC
(auto-zero) and the Simplified Needs Test (SNT), and to
annually communicate with the Secretary regarding their data
requirements and use of simplified formulas. It is also the
intent of the committee to request a study by the Government
Accountability Office regarding the benefits and costs to
States of increasing their acceptance of the auto-zero and SNT.
In addition, the committee intends to further simplify
eligibility for the auto-zero and SNT by aligning eligibility
for these formulas with current or past participation in
Federal means-tested benefit programs. The committee bill also
allows students to apply for financial aid earlier and to
complete the FAFSA at any time in order to receive early,
nonbinding estimates of their EFC. Finally, the committee bill
protects students by strengthening provisions regarding the
prohibition of charges for FAFSA completion.
Early awareness of financial aid eligibility
The committee bill creates a comprehensive system to
provide students and families as early as middle school, as
well as adult learners, with better information regarding
financial aid and early estimates of their aid eligibility. It
is the intent of the committee for students and parents to
receive adequate estimates of their eligibility for aid from
multiple sources, including State and institutional aid, as
early as possible to encourage increased preparation and plans
for college. In addition, the committee encourages the
Secretary to conduct a feasibility study to determine the
practicability of allowing dependent students to apply for
financial aid in their junior year using prior year income.
Return of Title IV funds
Under the statute, a student is not required to return 50
percent of the aid he or she receives under the return of title
IV aid provision. It may provide clearer interpretation if
grant protection were determined by subtracting one-half of the
original grant amount the student received, or was eligible to
receive, from the amount of grant aid the student is expected
to repay.
Information for students--exit interviews
The committee supports institutions of higher education
that choose to utilize the expertise of the Secretary, guaranty
agencies or lenders who offer information to assist them in
providing the highest quality exit interviews. The institution
is also required to discuss the effects of consolidation, tax
benefits and other borrower benefits.
Institutional information
In addition to the information on college costs, the
committee also believes it is important for students and their
parents to have access to information regarding the transfer of
credit, employment and graduate education outcomes. The
committee includes these provisions in the list of information
that must be made readily available to prospective and enrolled
students. However, the committee recognizes the efforts of many
institutions of higher education to provide data on these
outcomes already, and encourages the Secretary to consider
these efforts when implementing this section, in order to
ensure these requirements do not become an onerous requirement
for institutions.
At its July 20, 2005 meeting, the Executive Committee of
the State Higher Education Executive Officers (SHEEO) directed
its staff to explore means of promoting the further development
and voluntary coordination of student record systems among the
States. The SHEEO Executive Committee action was based on the
recognition that, in varying degrees of comprehensiveness, 39
States already implement student unit record systems that
enable States to inform public policies by examining
information on college attendance patterns, completion rates,
actual costs, and the availability of financial assistance for
all students.
The SHEEO Executive Committee action reflected the
following purposes and principles: SHEEO should examine
existing State data systems and encourage the coordination and
consistent development of such systems to improve the accuracy
and validity of policy information and facilitate the
development of information-sharing systems to monitor
postsecondary participation, costs, and student success. Such
systems ideally should include information on: (1) Student
characteristics (demographic data); (2) Student enrollment; (3)
Costs and financial assistance; and (4) Degree or certificate
completion.
The committee encourages those 11 States that do not
currently have an effective State data system to develop such a
system.
All State data systems should continue to maintain fail-
safe safeguards to protect the privacy of individuals. All data
analysis should be used exclusively for policy research on
groups of students, with no disclosure or reporting of data on
individuals or small groups that might involve violating the
privacy of individuals. The committee supports research and
discussion to foster improved policy data systems, involving
and informing all sectors of higher education, policymakers,
and others seeking to improve educational attainment in the
United States.
Institutions are now required to report disaggregated
information on the student body by gender, major racial or
ethnic groups and Pell-eligibility status. In reporting
graduation rates, institutions are allowed to take into
consideration service in the armed forces, religious missions,
or Government foreign service when calculating time to degree.
The committee includes language regarding the transfer of
credit based on the findings of a GAO study, issued in October
of 2005, that indicates many institutions do not have a formal
transfer of credit policy, and that many institutions do not
accept credits from institutions accredited by certain
accrediting bodies or associations. Institutions are required
to have a clearly stated public disclosure of their transfer of
credit policies, including a statement that the institution
will not deny transfer of credit based solely on the
accreditation of the institution from which the student
transfers. This provision is intended to make sure that
students have the best information possible when considering
transferring from one institution to another. The committee
does not expect this provision to impinge on the ability of
institutions to develop articulation agreements with other
institutions within the State or outside of the State, nor does
the committee expect this provision to limit the ability of
institutions to develop transfer of credit policies that take
into account other factors, such as the quality, rigor, or
relevance of the transferring students' previous coursework.
Experimental sites
The committee retains experimental sites and suggests that
in addition to the list of suggested areas of experimentation,
new or existing sites may want to look at the use of modular or
compressed coursework as a way to expedite degree completion.
Advisory Committee on Student Financial Assistance
The Advisory Committee is charged with conducting a review
and analysis of title IV regulations. It is the intent of the
committee that the review and analysis of regulations will not
take the place of the Advisory Committee's other ongoing
charges from Congress, including those related to access and
persistence for low- and middle-income students. The committee
intends for the Advisory Committee to conduct the regulatory
review and analysis while also fulfilling its existing
responsibilities and its additional new charge to conduct a
study on innovative pathways to degree attainment, including
pathways for adults and out-of-school youth. It is also the
intent of the committee for the Secretary to provide the
Advisory Committee with the necessary resources to be able to
conduct the review and analysis of regulations while fulfilling
its other responsibilities to Congress.
ACCREDITATION
Accrediting agencies or associations recognized by the
Department of Education are invested with a public trust and
perform an important public function. Congress expects that
those receiving Department recognition will perform those
functions with the same diligence and competence as would be
provided by any public body and that their procedures will
reflect the same level of transparency, due process, and
accountability that would apply to the Department if it
performed this function itself.
The new language governing accrediting agencies or
associations applying and enforcing standards that respect the
missions of institutions of higher education, including
religious missions, is not intended to allow an institution to
deny a person participation in, the benefits of, or to subject
a person to discrimination under any program or activity
receiving Federal financial assistance under existing laws,
including those with respect to race, color, religion, sex,
national origin, age, or disability; or because the person has
not complied with a standard of the institution that requires
the person to discriminate on a basis described on any of
these: race, color, religion, sex, national origin, age, or
disability.
Due process
The committee is concerned that institutions of higher
education do not currently receive appropriate minimum due
process protections when undergoing accreditation evaluations.
Accordingly, the committee has added a new section which
provides that, prior to any final action, an adversely affected
institution may submit a written response to be included in the
record of such decision and, further, that this institution may
seek an appeal before a panel comprised only of members that
did not participate in the underlying adverse decision and do
not otherwise possess any conflict of interest.
In regard to the awarding of accreditation or
reaccreditation of an institution, the word ``finding'' is
included in the committee bill. The word ``finding'' means a
substantive conclusion related to the agency's standards or the
Secretary's criteria that is reached in connection with a
decision.
TITLE V--DEVELOPING INSTITUTIONS
According to Census Bureau data, the Hispanic population in
the United States grew by 25.7 million between 1970 and 2000.
The most recent data indicate that the Hispanic population
represents approximately 14 percent of the U.S. population,
making it the Nation's largest minority group. Further, while
the overall labor force is projected to slow down over the next
decades as an increasing number of workers reach retirement
age, the Hispanic labor force is expected to continue growing
at a fast pace. It will expand by nearly 10 million workers
between now and 2020. Estimates project that by the year 2050,
one in four Americans will be of Hispanic origin. The committee
recognizes that the Nation's economic and social success rests,
in large part, on the level of skills and knowledge attained by
our Hispanic population. Hispanic-serving institutions play a
critical role in the attainment of such skills and knowledge.
Hispanic-serving institutions (HSIs) have a record of
increasing the number of Hispanic students enrolling in and
graduating from college. Although HSIs account for only 5
percent of all institutions of higher education in the United
States, HSIs enroll over half (51 percent) of all Hispanics
pursuing higher education degrees in the 50 States, the
District of Columbia, and Puerto Rico. Despite this progress,
Hispanics still lag behind their non-Hispanic peers in
postsecondary school enrollment. In 2000, only 21.7 percent of
all Hispanics ages 18 through 24 were enrolled in postsecondary
degree-granting institutions in the United States. Moreover,
Hispanic students are disproportionately enrolled in 2-year
colleges, and are much less likely to finish college than their
non-Hispanic peers. According to the Department of Education,
in 2000, Hispanics earned only 6 percent of all bachelor's
degrees awarded, 4 percent of all master's degrees, and only 3
percent of all doctorates.
Therefore, the capacity of institutions of higher education
to serve the increasing number of Hispanic students must be
expanded and improved. Building on previous success, this bill
strengthens HSIs by establishing a competitive grant program to
expand post-baccalaureate degree opportunities at HSIs. Current
law provides support only for 2-year and 4-year institutions;
this bill establishes support for graduate programs at HSIs.
Grants will support graduate fellowships and support services
for graduate students, as well as supporting facilities
improvement, faculty development, technology and distance
education, and collaborative arrangements with other
institutions.
The committee recognizes that current law places a number
of unnecessary, burdensome administrative and regulatory
barriers on HSIs. It is the committee's intent to increase
educational opportunities for all students, and particularly
Hispanic students, and accordingly, to eliminate bureaucratic
barriers that limit access.
This legislation removes the requirement that HSIs must
wait 2 years before becoming eligible to apply for another
grant under title V of the Higher Education Act. The current 2-
year wait-out period does not provide the opportunity for many
HSIs to implement ongoing programs and conduct long range
planning. As a result, many HSIs cannot maintain continuity in
educational programming. By eliminating this wait-out period,
the committee is focused on creating opportunities to improve
the quality of education for Hispanic students attending HSIs.
The bill also removes the requirement that HSIs document
that 50 percent of their Hispanic enrollment are low-income
individuals. As HSIs are already required to serve ``needy
students''--meaning at least 50 percent of the degree students
are receiving Federal need-based assistance or the
institution's percentage of Pell grant recipients exceeds the
median percentage for similar institutions receiving Pell
grants--this requirement is duplicative. Further, the low-
income provision requires institutions to collect information
and data that has not been readily available or easily
acquirable. There is no other requirement in Federal law for
institutions of higher education to collect this type of data.
As a result, many institutions with large Hispanic student
populations must divert resources and staff to acquire this
information. Without such information they do not qualify as an
HSI.
Rather, the committee believes that these institutions
should devote resources to building capacity and serving the
growing Hispanic student population. To ensure that the
institutions continue to serve needy student populations, this
bill maintains the requirement that needy students must be
served, but eliminates the additional requirement that the
schools demonstrate that 50 percent of their Hispanic students
are low-income.
The bill also facilitates the transition of Hispanic
students from 2-year colleges to 4-year colleges, including
courses designed to retain students through program completion.
As noted earlier, Hispanics are disproportionately enrolled in
2-year colleges as compared to their non-Hispanic peers. To
encourage and support these students' continued education, this
bill adds, as an authorized activity, programs that assist a
student's transfer from a 2-year institution to a 4-year
institution.
With these provisions, the committee provides institutions
of higher education with the resources and flexibility they
need to build capacity and serve the increasing Hispanic
student population.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
For more than 4 decades, title VI international education
programs have served the Nation in developing and maintaining
today's national higher education infrastructure for the study
of more than 220 foreign languages, foreign cultures, and
international business. As witnessed in recent years, foreign
language and cultural knowledge needs have significantly
increased throughout the Federal Government due to a wider
range of security threats, the emergence of new nation states,
and the globalization of the United States economy. Likewise,
American business and education increasingly need
internationally experienced employees to compete in the global
economy, to manage a culturally diverse workforce, and to
impart international skills and understanding to our citizens.
In a time of heightened security needs, when our economy
demands that we enter new markets, and when the world requires
us to engage in diplomacy in more thoughtful and considered
ways, it is vital that we have at our disposal a multilingual,
multicultural, internationally experienced workforce and
citizenry. To help meet these challenges, the committee updated
and strengthened several title VI programs.
DIVERSITY OF VIEWS AND RESOLUTION OF DISPUTES
The committee is concerned about reports of bias and one-
sided treatment of subject matter in some title VI-funded
activities and programs. The committee believes that students'
interests are best served when they are exposed to a variety of
perspectives on topics under consideration, particularly those
that are controversial. Accordingly, the committee requires
grant applicants to describe in their applications how
activities funded by a grant will reflect diverse perspectives
and a wide range of views, as well as generate debate on world
regions and international affairs, where applicable. Applicants
are also required to describe how they will address potential
disputes concerning the extent to which funded activities
reflect diverse perspectives and a wide range of views.
If a complaint regarding activities funded under this title
is not resolved under the process outlined in a grantee's
application, and such complaint is then filed with the
Department, the Secretary must be notified. When circumstances
warrant, the Secretary is authorized to immediately suspend
future funding for the grant pending the resolution of such
dispute, which must be accomplished within 60 days. Funds must
be returned to the university or program if at the end of 60
days a dispute has been resolved in their favor or, in order to
ensure that disputes are resolved within 60 days, if the
Secretary has not rendered a final decision. Suspension of
funds shall not apply to awards that have been made to
individual students under the Graduate Fellowships for Foreign
Language and Area or International Studies Program. The
committee intends for the Secretary to provide a procedure by
which grantees may take corrective action when a dispute is not
ruled in their favor. The Secretary shall take into account the
outcomes of such proceedings when determining the renewal of
grants. It is the committee's intent thatdisputes be resolved
at the campus level to the greatest extent possible, and that the
Secretary suspend funding only when grantees egregiously violate the
conditions and terms of their grants.
Recent allegations about bias at the area studies centers
funded under this title have been the cause of much discussion
on the committee. The purpose of the Federal funding to these
centers is to improve information and research about the areas
of the world that are often in the international spotlight. It
is imperative that funded centers offer diverse perspectives
and a wide range of views on the issues. In order to address
concerns it will now be required that each applicant for
funding demonstrate how they will provide this diversity and
how they will address any allegation of bias. Should the
Secretary have evidence that a funded center has failed to do
this, he or she is authorized to suspend future funding.
INTERNATIONAL AND FOREIGN LANGUAGE STUDIES
Consultation
The committee recognizes that programs and grants under
this title focus on a variety of world regions, foreign
languages, and international subjects. To ensure that grants
are appropriately focused on areas of national need for
expertise in such matters, the Secretary is directed to consult
with and receive recommendations from the Secretary or
designees of the National Security Council, the Department of
Homeland Security, the Department of Defense, the Department of
State, the Federal Bureau of Investigation, the Department of
Labor, the Department of Commerce, the Director of National
Intelligence, and other relevant agencies, such as the
Department of Health and Human Services. These entities are
also required to inform the Secretary of how they utilize the
expertise and resources provided by grantees under this title.
The Secretary must take such recommendations and information
into account when requesting applications for funding, and make
available to applicants a list of areas identified as areas of
national need. The committee believes such consultation and
information-sharing is particularly important in light of the
war on terror, the growing range of security threats,
increasing global economic competition, the recently documented
shortages of individuals proficient in critical foreign
languages and area expertise in many government agencies,
businesses and other organizations, and the need for greater
mutual understanding between the United States and other
nations and cultures. Accordingly, the committee also directs
relevant grant applicants to describe in their applications how
they will encourage government service in the areas of national
need identified by the Secretary.
Survey
To better gauge the impact of programs funded under this
title in meeting national needs for expertise in foreign
languages and world regions in various sectors, the committee
directs the Secretary to assist relevant grantees in developing
a survey to administer as appropriate to students who have
participated in title VI programs to determine post-
participation placement. The committee wishes to determine the
number of students pursuing public service, including
government service, health careers, careers in international
organizations, businesses or nonprofits, and careers in
research, as well as advanced education or other activities.
The committee is particularly interested in determining the
extent to which students utilize the knowledge and skills
gained through participation in title VI programs in ways that
contribute to meeting national needs.
Graduate and Undergraduate Language and Area Centers and Programs
The committee has made several improvements to strengthen
the Graduate and Undergraduate Language and Area Centers and
Programs. Authority is added clarifying that the National
Language and Area Resource Centers may use title VI funds for
the purpose of hiring instructors of less commonly taught
languages. This change addresses the increased demand for
courses offering rare languages related to national security
interests and for which faculty may not be readily available.
Revisions to current law also permit additional grants to the
National Language and Area Resource Centers to strengthen
outreach to State and local school districts. The committee has
restored eligibility of undergraduate students to receive
Foreign Language and Areas Studies (FLAS) fellowships.
Permitting undergraduate students to receive these fellowships
serves the national interest by supporting early language and
world area study to help individuals achieve high levels of
proficiency in the less commonly taught languages. The
committee intends that undergraduate students be allowed to use
FLAS fellowships in the United States and abroad for
intermediate or advanced study of the less commonly taught
languages and of foreign cultures. The committee recognizes
that foreign immersion experiences are critical for achieving
high levels of proficiency in the less commonly taught
languages, which are important to the Nation's national
security interests.
Undergraduate International Studies and Foreign Language Programs
The committee modified the Undergraduate International
Studies and Foreign Language Programs to increase the cap on
funding for this section to 20 percent. Institutional grants
for enhancing the international dimension of undergraduate
education are critical to increasing the number of Americans in
the pipeline to foreign language fluency and international
knowledge. Given current shortages of such personnel throughout
government, education and the professions, the committee
believes increased funding should be permitted to respond to
rising demand. The committee urges the Department of Education
to encourage the development of programs that stress the
teaching of foreign languages for practical and professional
use, including programs that promote foreign language education
across the curriculum. Additionally, the committee revised
current law to allow up to 10 percent of a project's funds to
be used for sending undergraduate students on educational
programs abroad that are closely linked to the project's goals
and have the purpose of enhancing foreign language proficiency
and deepening cultural knowledge.
Research and studies
The committee recognizes that international and foreign
language education represents an evolving field in the United
States, one with increasing importance for the national
interest. The Research and Studies program plays an important
role in enhancing international and foreign language education.
The committee urges the Secretary to engage in data collection
and analysis of international education and foreign language
needs and outputs on an ongoing and systematic basis, and to
regularly make the results publicly available. The committee
also encourages the Secretary to consider projectsthat assess
the impact of student learning abroad, develop proficiency assessments
for the less commonly taught languages where not in existence, assess
the relationship between gains in foreign language proficiency and
cultural learning, and assess the use of technology for language
acquisition and proficiency.
Technological Innovation and Cooperation for Foreign Information Access
The committee updated and strengthened the Technological
Innovation and Cooperation for Foreign Information Access
program. The committee added nonprofit educational
organizations as eligible grant recipients in consortia with
institutions of higher education and/or public or private non-
profit libraries. The committee also clarified that funds may
be used for the acquisition of printed materials from abroad
for the purposes of this section. Currently authorized
activities, such as applying new technologies to indexing,
cataloging, preserving, disseminating, and providing access to
foreign materials, require that the materials be available. The
committee added new authorized activities for establishing
linkages with institutions abroad that facilitate access to
foreign information and provide the Department of Education
flexibility to establish new activities deemed useful for
carrying out the purposes of the section.
BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS
No alterations were made to the Business and International
Education Programs. The main purpose of the business and
international education grants has been to support programs of
local and State scope.
INSTITUTE FOR INTERNATIONAL PUBLIC POLICY
The changes to the Institute for International Public
Policy (IIPP) grant program reflect the committee's belief in
the continued importance of increasing the number of African-
Americans and other underrepresented minorities in the
international service.
Minority Foreign Service Professional Development Program
The committee included language that permits the Secretary
of Education to waive or reduce the non-Federal matching share
requirement of the eligible recipient. This will permit the
successful grantee to implement all of the objectives set forth
in part C with both federally appropriated funds and private
in-kind and cash contributions in a post-9/11 world.
Institutional development
The committee added language to clarify that the academic
programs intended to receive support through the grants awarded
by the Institute are international affairs, international
business, and foreign language study programs. In an era of
globalization where public policy is often driven by private
sector considerations, it is important that IIPP's program of
training and capacity building encompass the fullest range of
issues and subject matter.
Advanced degree in international relations
The committee wishes to allow eligible students to earn a
doctoral degree, where appropriate, instead of the master's
degree mandated by current law. The current program limitation
to offering master's degrees may not be appropriate for some
students in certain fields of study. The addition of the
doctoral degree will not only increase the number of minority
Ph.D. experts, especially in areas relating to national
security, it will increase the depth and breadth of national
security and international affairs expertise from which the
Nation can benefit.
Financial assistance
To support the goal of increasing the representation of
African-Americans and other underrepresented minorities in
international service, the committee included provisions
relating to financial support for students. Under the new
provisions, students will be eligible to receive summer
stipends to help defray costs for participation in the summer
institute funded under this part. The committee also authorized
a Ralph Bunche scholarship to help finance the education of
students enrolled in programs funded under this part. The
scholarship honors the life and career of Ambassador Ralph
Bunche, who became the first person of color to receive the
Nobel Peace Prize in 1950. The committee finds it fitting that
a scholarship to foster greater participation in international
service by African-American and other underrepresented students
of color should be named after Mr. Bunche.
GENERAL PROVISIONS
The committee added new sections to the General Provisions
to allow the Department of Education discretionary funding (up
to 1 percent of title VI appropriations) for evaluation,
national outreach, and information dissemination. The committee
urges the Department to increase outreach to the higher
education community about the funding opportunities available
under title VI, as well as to find new ways to provide greater
national accessibility to and awareness of the expertise and
knowledge that these programs produce.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
GRADUATE EDUCATION PROGRAMS
Graduate and professional education programs in the United
States are respected and emulated worldwide. They attract and
educate the best and brightest domestic and international
students. Our unique system of combining graduate education
with teaching and research strengthens the American education
system, while producing highly educated individuals who will
become the next generation's leaders in education, government,
medicine, and industries vital to our Nation's competitiveness,
economy, security, and well-being.
Unlike graduate education programs in other Federal
agencies, the Department of Education's programs provide
support for the entire range of academic disciplines, including
the sciences, arts, social sciences, and the humanities. The
Department currently administers 2graduate programs: Graduate
Assistance in Areas of National Need (GAANN) and Jacob K. Javits
Fellowships. GAANN provides traineeships to students of superior
academic ability in academic departments at universities that offer a
course of study that leads to a doctoral degree in an area of national
need designated by the Secretary of Education. The Javits program
competitively awards portable fellowships to top graduate students
pursuing a doctoral or the highest degree possible in the arts,
humanities or social sciences.
The committee endorses the goals and success of the GAANN
and Javits programs and seeks to further strengthen their
achievement and purpose. It is the intent of the committee to
make additional changes to Javits to ensure the diversity of
its Fellowship Board in terms of institution type, range of
disciplines, minority status and geographic location. The
committee also seeks to establish parity between the GAANN and
Javits award amounts and the National Science Foundation's
Graduate Research Fellowship Program.
In determining current and future areas of national need,
the committee directs the Secretary to consult with various
Federal and nonprofit agencies and organizations. The committee
instructs the Secretary to also give serious consideration to
employment projections by the U.S. Bureau of Labor Statistics
in assessing current and future professional workforce needs,
and to designate fields experiencing significant shortages,
such as registered nursing and elementary and secondary
education, as areas of national need. In addition, the
committee directs the Secretary to establish a priority for
grants in those areas of national need where there are
significant professional workforce shortages.
FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION
There are a variety of issues and problems impacting
postsecondary education. The Fund for the Improvement of
Postsecondary Education (FIPSE) was created to identify new
ideas and practices to address these concerns. The FIPSE
program awards grants designed to support innovative reform
projects to resolve relevant issues and problems impacting
postsecondary education. Since its inception in 1973, FIPSE has
provided grants to some of the boldest innovators in education.
The committee supports the mission and purpose of FIPSE and
expands several of its provisions, including the areas of
national need under special projects.
The committee anticipates that one of the new activities
provided through special project grants will improve secondary
school graduation and college attendance and completion rates
for disadvantaged students. While there are many secondary
school reform models that could meet this eligibility
requirement, the committee would like to make note of one
particular model program called Project GRAD. Project GRAD is a
comprehensive, cost-effective program with a record of
improving the academic achievement and college access of
students from low-income backgrounds. Project GRAD's integrated
approach to teaching and learning includes working with an
entire feeder system in a school district, the local non-profit
Project GRAD organization, community involvement and
collaboration, and existing assets. Project GRAD delivers a
comprehensive set of research-based programs in reading,
mathematics, classroom management, social services/parent
involvement, and college preparation. In addition, Project GRAD
provides a 4-year college scholarship to all students who
qualify. It is this unique structural approach that contributes
to higher academic standards and offers the dream of graduation
and college to all the students within a feeder system, or even
an entire district.
Members of the committee are also aware of the special
project grant awarded to the Shepherd Program at Washington and
Lee University and support its efforts to coordinate and expand
its activities, through the Shepherd Consortium of colleges and
universities, to provide an integrated curricular and co-
curricular interdisciplinary study focusing on poverty and
human capability for university and law students with
internships in non-profit agencies in disadvantaged
communities. The Consortium will include among others:
Georgetown University, Vanderbilt University, Berea College,
Morehouse College, Spelman College, Middlebury College, Morgan
State University, the University of Arkansas at Little Rock,
and the University of Richmond. The Secretary is authorized to
make grants under section 741 for the Shepherd Consortium.
Members of the committee envisioned, in the development of this
provision, the Shepherd Consortium's combined approach of core
academic curricula with service learning internships, as a
means to assist those in disadvantaged communities.
The committee encourages the Department of Education to
explore and fund law school programs focusing on the interface
of law and public health. The committee urges the Department to
establish a consortium of at least four academic institutions,
such as the University of Alaska, the University of Hawaii, the
University of Wyoming, and Boston College, to promote the
development and implementation of such programs and research
activities. These educational programs should emphasize
cultural and socioeconomic diversity, multicultural variables
in communication, and the uniqueness of rural communities in
training students, professors, and health and legal
professionals in public health policy advocacy.
DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH DISABILITIES RECEIVE A
QUALITY HIGHER EDUCATION
Students with disabilities struggle to access and persist
through higher education. Students with disabilities are 10
percent less likely to enroll in some form of postsecondary
education compared to students without disabilities. They are
much less likely to be minimally qualified to enroll in
postsecondary education than their counterparts without
disabilities. Similarly, those students who enroll in
postsecondary education are less likely than their counterparts
without disabilities to stay enrolled in or earn a
postsecondary degree or credential. Despite these shortcomings,
those who do graduate go on to be quite successful in the
workforce. College graduates with disabilities enroll in
graduate school or are employed full-time on a par with
graduates without disabilities.
The committee recognizes the unique challenges students
with disabilities face when trying to access higher education
and their overall significance to our Nation's workforce. It is
for this reason that the committee encourages institutions of
higher education to decrease barriers to higher education for
students with disabilities. The bill amends the authorized
activities under part D by adding several provisions in which
institutions of higher education may engage to accomplish this
goal. The bill requires that the academic and programmatic
needs of students with disabilities must be met as part of the
development of innovative, effective, and efficient teaching
strategies. The committee recognizes that the retention and
completion rates of postsecondary programs for students with
disabilities is quite poor, and added this provision in an
attempt to improve such rates. The committee added language to
address the insufficient postsecondary education and employment
outcomes for students with disabilities by including the
development of teaching strategies to ensure the successful
transition of students with disabilities from secondary to
postsecondary education, and aligned them with the new
transition requirements in the Individuals with Disabilities
Education Act and the Workforce Investment Act.
The committee also added a new data collection requirement.
This provision, collecting data on employment outcomes of
students with disabilities after the receipt of postsecondary
education, was added to gain information on the employment
outcomes of such education for students with disabilities. The
committee intends that such research, information, and data
will be made broadly accessible through means such as web-based
clearinghouses, portals or other means of cataloging and making
available collected information. The committee recognizes that
the use, and accessibility of technology can be a barrier to
students with disabilities accessing distance learning courses.
The Disability Career Pathways activity was included to
recognize the importance of developing the next generation of
professionals to work with individuals with disabilities. It
provides training for postsecondary staff to enable them to
educate young people about disability related fields of study.
As a result, it is expected that more individuals will pursue
careers in these fields. The committee intends that activities
authorized under this section will focus on making
postsecondary education more accessible to students with
disabilities through curriculum development. The Secretary of
Education is required to review and disseminate a report of the
demonstration project activities funded under this section to
provide guidance and recommendations to all institutions of
higher education on how successful projects can be replicated.
TITLE VIII--MISCELLANEOUS
This title contains the new programs that the committee
came to agreement on within the Higher Education Amendments of
2005.
MATH AND SCIENCE SCHOLARS PROGRAM
This new initiative is designed to encourage more high
school students to take a rigorous secondary curriculum in math
and science. The committee believes that this effort is
necessary to encourage more students to become interested in
these areas to continue to allow the United States to remain
competitive internationally. The fields of math and science are
critical to the economic growth and national security of the
United States. Our economy today is more reliant on workers
with greater quantitative skills, scientific knowledge and
technological expertise. Unfortunately, the supply of these
qualified workers here in the United States is not keeping up
with business demand, forcing American industries to rely on
foreign talent to fill the gaps.
According the National Center for Education Statistics,
U.S. 4th graders score well in math and science against
international competition, but they fall near the bottom or
dead last by 12th grade in these subject areas. This may be due
in part to the small number of high school students taking
advanced math or science courses. A report from the Task Force
on Mathematics and Science Achievement suggests that most U.S.
high school students take no advanced science courses, with
only one-quarter enrolling in physics and one-half in
chemistry. In addition, while most countries introduce algebra
and geometry in the middle grades, only one in four U.S.
students take algebra before high school. Further,
approximately 90 percent of U.S. high school students stop
taking math before getting to calculus.
With limited Federal resources, it is imperative that we
make smart investments and target funding to those areas that
are critical to our Nation's future. The committee believes the
new Math and Science Scholars Program is one such smart
investment. It is a competitive grant program to award merit-
based scholarships to eligible students who complete a rigorous
high school curriculum in mathematics and science. Students are
eligible to receive a scholarship of up to $1,000 per year for
up to 2 years of undergraduate study. Eligible students must be
in their first or second year to receive a scholarship.
The committee also believes that State involvement in this
new program is critical to its success. States will be required
to match at least 50 percent of the Federal funds to
participate. The committee believes that States should also be
given flexibility in tailoring the scholarship program to State
standards or needs. Participating States, and not the Federal
Government, will determine what constitutes a rigorous high
school curriculum in math and science. States may also set a
priority in awarding these grants to eligible students, but
such a priority is not required. Such priority could be to
respond to specific needs in areas of the State or to address
attracting students from groups underrepresented in the math
and science fields. These provisions are designed to require
participating States to make the commitment to a strong math
and science curriculum at the secondary level and ultimately
attract more students to pursue these fields.
POSTSECONDARY EDUCATION COST STUDY
There has been ongoing debate about the spiraling cost of
college and the appropriate Federal role. The purpose of this
study is to give the public and the Congress an independent
assessment of the financial factors associated with
postsecondary tuition costs. The assessment will examine the
key elements linked with the cost of tuition and identify and
evaluate effective measures that may be utilized to control
future postsecondary education costs. To carry out this study,
the committee believes the Secretary should enter into a
contract with an independent, bipartisan organization that has
specific expertise in public administration and financial
management such as the National Academy of Public
Administration. The results of this study will inform future
discussion on college tuition and help future congresses
examine this complicated issue with greater clarity.
JOB SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR INDUSTRIES
The needs of today's workforce have created an increased
demand on colleges to respond quickly to the education and
specific skills training needs of businesses. These competitive
grants would allow institutions of higher education that offer
a 1- or 2-year program leading to a degree or certificate to
work with local workforce boards to create innovative programs
to respond to high-growth industries. Colleges could develop
curricula or customize programs to match workers with the
skills in demand in particular industries.
GRANT PROGRAM TO INCREASE STUDENT RETENTION AND PROMOTE ARTICULATION
AGREEMENTS
One of the most pressing issues in higher education today
is retention and persistence toward degree. Fewer than half of
the Black and Hispanic students who began full-time study at a
4-year college in 1995-96 with the goal of earning their B.A.
had completed that degree 6 years later, whereas 70 percent of
their white and Asian-American counterparts had completed. This
discrepancy has a direct correlation with employability and
quality of life and the reason that the committee felt the need
to address this problem.
This competitive grant program would target assistance to
colleges enrolling at least 40 percent of need-based aid
eligible students and would direct funds to providing
counseling and advisement on course selection and financial
management, mentoring and direct instruction and tutoring to
support students as they complete coursework or transition from
2-year to 4-year colleges.
AMERICAN HISTORY FOR FREEDOM
The committee bill authorizes a new ``American History for
Freedom'' program to make competitive grants available to
institutions of higher education for the purpose of
establishing or strengthening programming in Traditional
American History, Western Civilization, or Free Institutions.
The program will help ensure that more postsecondary students
have the opportunity to participate in courses of study and
activities focused on these critical subjects, and that
prospective teachers have access to a solid foundation of
content knowledge.
The committee notes that today, more than ever, it is
important to preserve and defend our common heritage of freedom
and civilization, and to ensure that future generations of
Americans understand the importance of traditional American
history and the principles upon which this Nation was founded
and on which it continues to rely. In a time when our values
and ideals are questioned, is also important to develop an
understanding of the nature of free institutions, of the events
and principles that brought them into existence, and of how
they have been defended in the past.
TEACH FOR AMERICA
The committee establishes and authorizes grants for Teach
for America, a national program that recruits recent successful
college graduates to teach for up to 2 years inunderserved
communities in the United States. This money would be used to recruit,
select, train and support these graduates so that they could be placed
through an agreement in schools in districts with which there are
agreements. In addition these funds will support a study to assess the
quality of the Teach for America participants.
PATSY T. MINK FELLOWSHIP PROGRAM
The committee bill includes authorization for a new Federal
fellowship program linked to service in the higher education
professoriate. The Patsy T. Mink Fellowship program honors
Congresswoman Patsy Mink of Hawaii who served in the House of
Representatives for more than 27 years. She was a faithful and
dedicated member of the House Education and Labor Committee and
the Committee on Education and the Workforce during her service
in the House. In addition to her role as a driving force and
the author of Title IX of the Education Amendments of 1972,
which created equity in scholastics and in athletics for women
and girls, including at colleges and universities, Mrs. Mink
worked hard to expand educational opportunities at all levels
for low-income, minority, educationally-disadvantaged, first-
generation, and disabled students.
The committee believes that it is fitting that a program
designed to enhance the presence of minorities and women in the
higher education professoriate should bear Mrs. Mink's name. A
recent Woodrow Wilson National Fellowship Foundation report,
Diversity and the PhD: A Review of Efforts to Broaden Race and
Ethnicity in U.S. Doctoral Education, documents the under-
representation of minorities receiving doctorates. The Mink
Fellowship program will not only contribute to student
persistence in obtaining the doctorate, but also will encourage
students to continue in the professoriate beyond the service
requirement mandated by law.
STUDY ON COLLEGE ENROLLMENT BY SECONDARY SCHOOLS
The committee recommends that the Department collect, in
full compliance with FERPA, college enrollment by secondary
institution and graduation year from postsecondary institutions
via the Integrated Postsecondary Education System (IPEDS), and
diploma recipients by secondary institution and graduation year
from States via the Common Core of Data (CCD), both of which
are existing data-collection systems within the National Center
for Education Statistics.
The committee intends for these data to be used purely as a
tool for secondary institution leaders to measure the success
of their initiatives and innovations aimed at increasing
college enrollment. Data provided under this provision are not
intended to be used by Federal, State, or local governments to
hold schools, their administrators, teachers or staff,
accountable or suffer any repercussions as a result of the
data. The committee specifically opted to make trend data
rather than absolute numbers available to allow for examination
of progress over time rather than comparisons between schools.
The committee recommends that the Department contract with
College Summit, Inc. to calculate and make publicly available
year-to-year college enrollment rate trends by secondary
institution because College Summit is the preeminent national
non-profit organization concentrating on increasing college
enrollment rates in low-income communities, working both multi-
state and school-wide.
TITLE IX--AMENDMENTS TO OTHER LAWS
EDUCATION OF THE DEAF ACT OF 1986
Coordination with the No Child Left Behind Act and accountability for
student outcomes
The committee strengthened Gallaudet's elementary and
secondary schools' accountability by aligning such requirements
with the accountability requirements in the No Child Left
Behind Act of 2001 (P.L. 107-110). Specifically this provision
requires Gallaudet to select the academic content, achievement,
and assessment standards of a State approved by the Secretary
of Education as its own, and implement such standards as its
own by the 2008-09 school year and determine whether such
programs are making yearly adequate progress. The committee
believes that allowing Gallaudet to choose the approved
standards from a State would relieve the University of the
expensive and time consuming task of having to develop its own
standards and assessments for one small school. This would
provide a basis of comparison for the achievement of students
in the Gallaudet program that would otherwise be lacking.
Additionally, this requirement would make the State's
definition of ``adequate yearly progress'' applicable to the
University's K-12 education program. Again, the committee
believes that this would ensure that the educational
accountability provisions applicable to that program reflect
the No Child Left Behind principle that the education of
children with disabilities should be held to the same academic
expectations as the education of all other children.
Cultural experience grants
The committee has authorized funding for grants to
nonprofit organizations in order to enrich the cultural
experiences for deaf and hard of hearing children and adults
through exposure and access to professional theatre. The
committee believes that nationally recognized programs such as
Deaf West Theatre and the National Theater of the Deaf have a
long history of providing such programming to these audiences,
and would be appropriate recipients for these grant funds.
Audit reporting
The committee amends current law to ensure that the
Department of Education receives an independent financial and
compliance audit of the National Technical Institute for the
Deaf (NTID). In order for the audit to be meaningful and useful
to the Department, it is necessary to have the audit follow the
cycle of the Federal fiscal year. The bill ensures the audit
period and the fiscal year are the same.
Outcome reporting
The committee recognizes that by modifying Gallaudet's
reporting requirements on the disposition of secondary school
and university graduates from ``upon graduation/completion''
to``approximately one year after graduation'' will provide a clearer
picture of outcomes for students. Additionally, changing the timeline
of the reporting requirements will make the reporting language for the
audit the same for Gallaudet and NTID.
Surcharges for international students
The committee acknowledges that Gallaudet University and
NTID are the only liberal arts universities in the world
designed exclusively for deaf and hard of hearing students and
that the 100 percent surcharge for such students is a barrier
to attendance for international students. Although Gallaudet
and NTID have the capacity to serve additional international
students, the committee also recognizes its commitment to
students from the United States that are deaf, and assuring
that United States tax dollars are spent on providing
educational opportunities for United States citizens first.
Therefore, the committee is authorizing Gallaudet and NTID to
create a fee system in which students from non-developing
countries must pay the 100 percent surcharge, unless they can
demonstrate need, in which case they may have their surcharge
reduced by 50 percent. Furthermore, a student from a developing
country must pay a 50 percent surcharge, unless he or she can
demonstrate need, in which case the surcharge is reduced by 50
percent to 25 percent. Because of the initial costs associated
with developing a distance learning course, international
students living outside of the United States would not have to
pay a surcharge nor count towards the enrollment cap for
international students.
UNITED STATES INSTITUTE OF PEACE
Board of directors
The committee clarifies that the term of a board member
begins when the member is confirmed by the Senate and sworn in,
not when the board member's nomination is made public.
Confusion over the interpretation of this provision had led to
vacancies on the Institute's board, and also unnecessarily
shortened the term of service of some board members. The
committee expects this clarification to resolve any outstanding
concerns over board appointments.
Application of GEPA
The committee clarifies that certain provisions under the
General Education Provisions Act (GEPA) apply to the U.S.
Institute of Peace, allowing the Institute to continue to
receive appropriations for 1 fiscal year after the expiration
of the authorization, pursuant to the authority provided under
the GEPA for Federal education programs.
INDIAN EDUCATION
Tribally Controlled Colleges and Universities Act
In response to the concerns of many tribes, the committee
makes several changes to improve the consistency among the many
different Federal programs providing assistance to tribally
controlled colleges and universities. The committee recognizes
the challenges created for these institutions by having several
different Federal programs provide assistance, each with a
slightly different set of definitions. The committee expects
these amendments to improve the coordination between Federal
programs and help tribally controlled institutions spend more
time serving students, and less time navigating complex Federal
requirements.
Dine College
The committee recognizes the longstanding relationship
between the Federal Government and the Navajo Nation.
Legislation enacted in 1971 established a dedicated
discretionary grant stream for the Navajo Community College,
which has been renamed Dine College. In reauthorizing this
program, the committee finds that the Treaty of 1868 between
the United States of America and the Navajo Tribe of Indians
provides for the education of the citizens of the Navajo
Nation.
In 1968, the Navajo Nation created and chartered the Navajo
Community College by Resolution CN-95-68 as a wholly owned
educational entity of the Navajo Nation. In 1971, Congress
enacted the Navajo Community College Act (Public Law 92-189; 25
U.S.C. 640a et seq.). In 1997, the Navajo Nation officially
changed the name of the Navajo Community College to Dine
College by Resolution CAP-35-97.
The purpose of Dine College is to provide educational
opportunities to the Navajo people and others in areas
important to the economic and social development of the Navajo
Nation. The mission of Dine College is to apply the principles
of Saah Naaghai Bikeh Hozhoon (Dine Philosophy) to advance
quality student learning through training of the mind and
heart--(1) through Nitsahakees (Thinking), Nahata (Planning),
Iina (Living), and Sihasin (Assurance); (2) in study of the
Dine language, history, philosophy, and culture; (3) in
preparation for further studies and employment in a
multicultural and technological world; and (4) in fostering
social responsibility, community service, and scholarly
research that contribute to the social, economic, and cultural
well-being of the Navajo Nation.
The United States has a trust and treaty responsibility to
the Navajo Nation to provide for the educational opportunities
for Navajo people. Significant portions of the College's
infrastructure are dilapidated and pose a serious health and
safety risk to students, employees and the public.
For these reasons, the committee amends the Navajo
Community College Act, and renames it after the college, now
known as Dine College. The committee also updates references to
the Navajo Indian Tribe and instead replaces it with the
appropriate term ``Navajo Nation.''
The committee also updates a study of the facilities needs
of the college that was last commissioned in 1979, and
authorizes a separate set of uses of funds related to the
construction of buildings, water and sewer facilities, roads,
information technology and telecommunications infrastructure,
classrooms and external structures.
The committee also clarifies that funds made available
through this act may be used for improving and expanding the
college, including by providing--for the Navajo people and
others in the community--higher education programs; vocational
and technical education; activities relating to the
preservation and protection of the Navajo language, philosophy,
and culture; employment and training opportunities; economic
development and community outreach; and a safe learning,
working, and living environment.
TITLE X--RECONCILIATION
PROGAP AND SMART GRANTS
From savings in the loan programs, the committee authorizes
a new mandatory aid program through fiscal year 2010: the
Provisional Grant Assistance Program or ProGAP. There are two
separate funding streams under this program: ProGAP and SMART
grants. Students eligible for Pell grants are also eligible for
ProGAP grants. The Secretary shall ensure that grants under
this program are awarded to students with the greatest need, so
that the most disadvantaged students receive the most aid.
The National Science Mathematics Access to Retain Talent
(SMART) Grants will be made available to Pell-eligible students
who are in their 3rd or 4th year in an institution of higher
education and who are studying mathematics, science, technology
or engineering or a foreign language determined by the
Secretary to be critical to national security.
STAFFORD LOAN LIMITS AND INTEREST RATES
The committee, after much discussion with the higher
education community, has agreed to increase the loan limits
within the Federal Stafford loan programs in the first year
from $2,625 to $3,500 and in the second year from $3,500 to
$4,500. There is no change in the aggregate limits. These
increases are made in response to reports of growth in lending
outside of the Federal program. It is not the intent of the
committee to burden students with more student loan debt.
Instead the committee feels strongly that if students have to
borrow they should be borrowing in the Federal system which
offers guaranteed borrower benefits and a competitive interest
rate to all borrowers.
Increasing graduate student loan limits
At a time when our Nation must have the intellectual
capability to respond to increased national security threats
and maintain our economic competitiveness, it is vital that
Americans seeking post-baccalaureate education be able to
borrow adequate sums of money to finance their education.
Today's graduate students are tomorrow's scientists, engineers,
doctors, teachers, business and government leaders, and college
and university faculty. The committee recognizes that Federal
student loans offer the best lending terms and conditions--low
interest rates, the in-school interest exemption, repayment
options, and payment deferments--of any other source of loans.
Federal student loans are indispensable for graduate students
to finance their education.
Federal Stafford loan borrowing limits for graduate and
professional students have not been adjusted since 1992 and
recent evidence suggests that students are borrowing increasing
amounts of money from private sector loans and credit cards.
According to the Department of Education NPSAS Study, in 2003-
04, 40 percent of graduate and professional students used
Federal loans to finance their education. Of those student
borrowers, 27 percent of master's students, 45 percent of
doctoral students, and 76 percent of professional students
borrowed at the current annual maximum borrowing limit of
$18,500. The committee recommends increasing annual and
cumulative Stafford Loan borrowing limits for graduate students
to help them better finance their education and reduce the
costs of obtaining graduate and professional education. This is
one important way the Federal Government can invest in talented
individuals who will contribute to the Nation's economic
competitiveness and national security.
Interest rates
The committee maintains the current provision that shifts
all Stafford loans to a fixed rate of 6.8 percent beginning
July 1, 2006. The committee repeals the single holder rule,
allowing all students to consolidate their loans with any
lender.
PLUS LOANS
The committee understands that borrowers who are eligible
for PLUS loans are in a position to repay the loans and are
less likely to default. The committee increased the fixed
interest rate on PLUS loans from 7.9 percent to 8.5 percent,
effective July 1, 2006, in order to meet reconciliation
instructions. The committee notes that a rate of 8.5 percent is
still less than rates for other loan products over the last 30
years.
The committee also made graduate and professional students
eligible to borrow PLUS loans. PLUS loans are low interest
loans currently available to parents of undergraduates. Due to
the high cost of graduate and professional school, graduate and
professional students have increasingly relied on private loans
to cover their cost of attendance upon exhausting their Federal
student loan allotment. According to a report by the American
Council on Education, Federal Student Loan Debt: 1993 to 2004,
30 percent of professional students took out private loans in
2003-04. These loans are more costly for students than those
available through the Federal student loan program, increasing
graduate and professional students' debt over time. Making
graduate and professional students eligible to borrow PLUS
loans is intended to help reduce the cost burden of obtaining
graduate and professional education.
LOAN DEFERMENTS FOR BORROWERS SERVING ON ACTIVE DUTY
With the numbers of borrowers serving in Iraq, Afghanistan,
and other areas of the world, the committee believes borrowers
should be relieved of title IV student loan obligations while
defending this great Nation. The committee allows borrowers in
repayment for any Federal loan who are serving on active duty
during a war or other military operations or national emergency
to be placed in deferment.
INCOME CONTINGENT REPAYMENT FOR PUBLIC SECTOR EMPLOYEES
The committee expands the Income Contingent Repayment
provisions on loans for public sector employees who are in
emergency management, government, public safety, public health,
education or public interest legal services to discharge any
remaining principal after 10 years for any such borrower who
has made 120 on-time payments. The committee encourages more
college graduates to enter these important fields first by
lowering payments, as appropriate, based on income for the
first 10 years, then forgiving the balance remaining.
ADDITIONAL CHANGES TO THE FEDERAL FAMILY EDUCATION LOAN PROGRAM
Guaranty agency origination fee
Under current law, guaranty agencies are authorized, but
not required, to charge a 1 percent insurance premium (also
known as the guarantee fee) to subsidized, unsubsidized and
PLUS borrowers. S. 1614 replaces the current fee arrangement
with a new fee, called the guaranty agency origination fee.
This new fee structure requires that a guaranty agency
origination fee of 1 percent of each disbursement be deposited
into the Federal fund account. However, the source of the
guaranty agency origination fee may be the proceeds of the loan
or non-Federal funds under the jurisdiction of the guaranty
agency, including the agency operating fund. This was done to
ensure the Federal fund is not depleted.
Lender reinsurance
The committee also reduces the lender reinsurance
reimbursement to 97 percent of the unpaid principal of loans
insured under the program. The committee believes the decrease
in default rates over the last 12 years has reduced the need to
maintain the same reinsurance rate. The committee believes a 1
percent reduction in reinsurance rates is a reasonable
reduction.
School as lender
The committee has heard concerns from several sources about
some of the practices of institutions that have become lenders.
The committee directs schools acting as lenders to continue
acting as the lender until the student completes the required
coursework. In addition, schools acting as lenders must use
proceeds from the special allowance payments, interest payments
from borrowers and proceeds from the sale of the loan only for
need based aid or for reasonable reimbursement for direct
administrative expenses, including interest owed on funds used
to make loans.
The committee believes all net revenues from Federal loans
should be used to provide need based aid to students. The
committee requires that this source supplement, not supplant,
institutional, State, and local sources of support. The
committee also recognizes that some institutions are already
using some or all of the revenues for need based aid. In
implementing this provision the Secretary should recognize
current institutional efforts to help students and should apply
the supplement, not supplant rule only to that portion of net
revenues not currently being applied to need based aid.
Taxpayer-Teacher Protection Act extension
The committee also makes permanent the reduction of special
allowance payments for loans from the proceeds of tax-exempt
bonds, as provided for in the Taxpayer-Teacher Protection Act
of 2004.
NEED ANALYSIS ADJUSTMENTS
The income protection allowance is increased for both
dependent and independent students. This means that students
will be able to work more without having their earnings affect
their financial aid eligibility in future years. The asset
conversion rate was reduced from 35 percent to 20 percent for
dependent students and independent students without dependents
(other than a spouse) and from 12 percent to 7 percent for
independent students with dependents other than a spouse.
HURRICANE KATRINA RECOVERY
The committee provides relief to postsecondary students,
institutions of higher education and borrowers who have been
affected by Hurricane Katrina. The bill requires the Secretary
of Education to waive repayment of any Federal student
financial aid under title IV of the HEA that affected students
and institutions received if students were not able to complete
the term for which the funds were received. Federal loans made
to students or to parents of students who enrolled in affected
institutions will be discharged or cancelled. To ensure that
these provisions are applied only to those individuals and
institutions on whom there was an impact, the committee
requires the Secretary to determine the time period for which
an institution of higher education is an affected institution
using consistent, objective criteria. Affected students who do
not enroll in another institution will retain their in-school
status, which will assist them with any loans they had received
previously. Borrowers who lived or worked in a county or parish
in Louisiana, Mississippi, or Alabama that was declared a major
disaster area and were in deferment or grace period as of
August 22, 2005 will be maintained in that status until June
30, 2006. Affected borrowers who were in repayment are eligible
for forbearance for up to 1 year without having to provide
documentation.
The committee gives authority to the Secretary to approve
modifications to Teacher Quality Enhancement Grants to enable
grantees to use funds to assist States and local education
agencies to recruit and retain highly qualified teachers in
affected schools. The committee also gives the Secretary
authority to approve modifications of TRIO grants and grants
under part A or B of title III requested by a grantee located
in an affected area.
In addition to the specific waiver authority, the committee
gives the Secretary general authority to waive other
requirements in the Higher Education Act, upon consultation
with the authorizing committees, to accommodate other
situations as they arise. The committee requires the Secretary
to make information on all waivers, modifications or extensions
that are granted publicly available. To ensure accountability,
the committee requires the Inspector General of the Department
of Education to conduct an audit and investigation of each
program that includes response and recovery activities related
to Hurricane Katrina. The authority to waive requirements and
modify grants expires on September 30, 2006.
V. Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 23, 2005.
Hon. Mike Enzi,
Chairman, Committee on Health, Education, Labor, and Pensions, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1614, the Higher
Education Amendments of 2005.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Deborah
Kalcevic.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
S. 1614--Higher Education Amendments of 2005
Summary: S. 1614 would make numerous changes to federal
higher education programs, including the student and parent-
loan programs. CBO estimates that enacting the bill would
reduce direct spending by $4.0 billion in 2006, $9.7 billion
over the 2006-2010 period, and $28.6 billion over the 2006-2015
period.
The bill also would authorize spending for numerous higher
education programs--including the Pell Grant program--but that
spending would be subject to appropriation. CBO estimates the
Pell Grant provisions would authorize funding of $17.9 billion
in 2006 and $106 billion over the 2006-2010 period.
Implementing those provisions would cost $87 billion in outlays
over the five-year period. CBO has not completed an estimate of
the potential cost of the other provisions for which spending
would depend on future appropriation action.
The legislation contains no intergovernmental or private-
sector mandates as defined by the Unfunded Mandates Reform Act
(UMRA). The bill would benefit states and institutions of
higher education and any costs they incur would result from
complying with conditions of federal assistance.
Major Provisions: Provisions addressing the student aid
programs (Title X, Part A) with significant budget effects
include:
Changing parent-loan interest rates and the
formulas used to calculate lender yields;
Imposing limits on when the separate formula
for lender yields for loans supported with certain tax-
exempt funding would apply;
Changing the insurance provided to lenders and
the fees charged by lenders;
Reducing borrower origination fees and
requiring collection of a 1 percent fee from guaranty
agencies;
Increasing the loan limits for first-year,
second-year, and graduate students, as well as allowing
graduate students to borrow under the parent-loan
program;
Cancelling the repayment of student loans for
certain teachers and creating a new loan forgiveness
program for certain public service workers with direct
loans; and
Establishing two new programs that would
supplement the Pell Grant program during the 2006-2010
period.
Title X, Part B also would extend certain forms of relief
to students and schools affected by Hurricane Katrina, which
would have the effect of increasing direct spending by about
$100 million in 2006.
Other changes to the higher education programs (other than
in Title X) would increase overall direct spending (by less
than $100 million over the next five years) by postponing the
recall of Perkins loan funds and expanding eligibility for
student aid in several ways. The other portions of the bill
also would authorize new discretionary spending for Pell Grants
and other higher education programs.
Estimated cost to the Federal Government: The estimated
effects of S. 1614 on direct spending and on the Pell Grant
program are shown in Table 1. (CBO has not completed an
estimate for the numerous other higher education programs that
are subject to annual appropriation.) The costs and savings
from this legislation would fall within budget functions 500
(education, employment, training, and social services).
Basis of estimate: For this estimate, CBO assumes the bill
will be enacted in December 2005.
TABLE 1.--BUDGETARY EFFECTS OF S. 1614, HIGHER EDUCATION AMENDMENTS OF 2005
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------
2006 2007 2008 2009 2010 2006- 2010
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Title X, Part A: Education Provisions:
Estimated Budget Authority.............. -3,468 -1,439 -1,701 -2,072 -2,363 -11,043
Estimated Outlays....................... -4,160 -960 -1,275 -1,601 -1,882 -9,878
Title X, Part B: Hurricane Katrina Higher
Education Recovery:
Estimated Budget Authority.............. 105 0 0 0 0 105
Estimate Outlays........................ 105 0 0 0 0 105
Subtotal, Title X:
Estimated Budget Authority.......... -3,363 -1,439 -1,701 -2,072 -2,363 -10,938
Estimated Outlays................... -4,055 -960 -1,275 -1,601 -1,882 -9,773
Other Higher Education Act Amendments:
Estimated Budget Authority.............. 11 16 20 20 20 87
Estimated Outlays....................... 6 11 20 20 20 77
Total Changes:
Estimated Budget Authority.............. -3,352 -1,423 -1,681 -2,052 -2,543 -10,851
Estimated Outlays....................... -4,049 -949 -1,255 -1,581 -1,862 -9,696
CHANGES IN SPENDING SUBJECT TO APPROPRIATION\1\
Pell Grants:
Estimated Authorization Level........... 17,869 19,770 21,198 22,625 24,095 105,556
Estimated Outlays....................... 4,288 17,967 20,075 21,512 22,949 86,792
----------------------------------------------------------------------------------------------------------------
\1\CBO has not estimated the provisions other than those affecting Pell Grants.
Direct Spending--Title X, Part A: Education Provisions
Title X, Part A contains some provisions that would reduce
direct spending and others that would increase costs. On net,
these changes would reduce outlays by $4.2 billion in 2006,
$9.9 billion during the 2006-2010 period, and $31.5 billion
over the 2006-2015 period.
Major Education Provisions That Decrease Spending. The
major changes in Title X, Part A that would decrease direct
spending include new formulas for lender yields, a higher
interest rate for parent borrowers, a new fee on the guaranty
agencies, increased fees on some lenders, and reduced insurance
for lenders. CBO estimates that savings from these changes
would total $4.7 billion in 2006, $19.5 billion over five
years, and $44.8 billion over 10 years, mostly in the
guaranteed loan program (see Table 2).
Borrower Interest Rates and Lender-Yield Formulas. The bill
would change some of the formulas used to compute what
borrowers owe to lenders and what lenders receive from or pay
the government under the guaranteed loan program. Borrower
rates on new student and parent loans are scheduled to switch
from a variable-rate formula to a fixed rate (6.8 percent for
students and 7.9 percent for parents) in July 2006; the bill
would not change these rates for student loans, but would raise
the fixed rate for parent loans to 8.5 percent.
The lender-yield formulas for student and parent loans
would continue to be based on a variable-rate formula, but the
bill would no longer allow the borrowers' rates to serve as the
minimum for the lender yield. Under current law, lenders
receive the higher of the lender-yield formula or the rate paid
by borrowers, but the bill would require lenders to rebate the
difference between the two rates to the government when the
borrower rate is higher.
The combination of these changes to borrowers and lenders
would save an estimated $2.9 billion in 2006, $15.1 billion
over the 2006-2010 period, and $36.2 billion through 2015.
Changes in ``9.5 Percent'' Loans. Another change in the
payment formulas for lenders would affect loans that are funded
with financing based on tax-exempt bonds issued between 1980
and 1993. Historically, these loans have had a different
formula for determining payments to lenders. Specifically, the
formula for the special allowance payments to the holders of
these loans was 50 percent of the sum of the 91-day Treasury
bill rate plus 3.5 percentage points or 9.5 percent, whichever
was higher. In recent years, the 9.5 percent rate was higher.
Consequently, these have come to be referred to as ``9.5
percent'' loans.
Legislation in 2004 modified the policy for most new loans
from tax-exempt lenders during the October 2004 to December
2005 period, changing the lender formula to conform to the
rates paid to other lenders. Under current law, the formula on
new loans will revert back to the pre-October 2004 structure.
S. 1614 would continue the practice currently in place (instead
of allowing it to expire at the end of December 2005). This
policy would save an estimated $705 million in 2006, $1.4
billion over the 2006-2010 period, and $2.3 billion over the
2006-2015 period.
TABLE 2.--DIRECT SPENDING EFFECTS OF TITLE X, PART A--EDUCATION PROVISIONS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year in millions of dollars--
---------------------------------------------------------------------------------------------------------------------------------------
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006- 2010 2006- 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Major Provisions Reducing Spending:
Changes in Borrower Interest Rates and Lender
Yields:
Estimated Budget Authority...................... -3,530 -3,050 -3,455 -3,785 -4,050 -4,305 -4,560 -4,820 -5,090 -5,175 -17,870 -41,820
Estimated Outlays............................... -2,920 -2,385 -2,965 -3,280 -3,525 -3,760 -3,990 -4,225 -4,470 -4,720 -15,075 -36,240
Changes to Certain Loans Financed with Tax-Exempt
Bonds:
Estimated Budget Authority...................... -800 -195 -200 -200 -200 -205 -210 -210 -215 -215 -1,595 -2,650
Estimated Outlays............................... -705 -170 -175 -175 -175 -180 -185 -190 -190 -195 -1,400 -2,340
Changes in Borrower Insurance Programs and Guaranty
Agency Fees:
Estimated Budget Authority...................... -240 -330 -280 -305 -335 -365 -395 -430 -470 -500 -1,490 -3,650
Estimated Outlays............................... -240 -330 -280 -305 -335 -365 -395 -430 -470 -500 -1,490 -3,650
Changes to Lender Insurance:
Estimated Budget Authority...................... -410 -135 -140 -145 -155 -160 -165 -175 -180 -180 -985 -1,845
Estimated Outlays............................... -375 -105 -120 -130 -130 -140 -145 -150 -155 -165 -860 -1,615
Changes in Lender Fees:
Estimated Budget Authority...................... -445 -55 -60 -60 -60 -65 -70 -70 -75 -75 -680 -1,035
Estimated Outlays............................... -425 -45 -50 -50 -55 -55 -60 -60 -65 -65 -625 -930
Subtotal:
Estimated Budget Authority.................. -5,425 -3,765 -4,135 -4,495 -4,800 -5,100 -5,400 -5,705 -6,030 -6,145 -22,620 -51,000
Estimated Outlays........................... -4,665 -3,035 -3,590 -3,940 -4,220 -4,500 -4,775 -5,055 -5,350 -5,645 -19,450 -44,775
Major Provisions Increasing Spending:
Changes in Borrower Origination Fees:
Estimated Budget Authority...................... 110 365 505 520 540 550 570 585 600 615 2,040 4,960
Estimated Outlays............................... 65 240 305 450 465 480 490 505 520 530 1,615 4,140
Increased Loan Limits:
Estimated Budget Authority...................... 180 515 515 530 555 575 590 615 635 655 2,295 5,365
Estimated Outlays............................... 105 355 455 465 480 500 515 530 550 570 1,860 4,525
ProGAP and SMART Grants Programs:
Budget Authority................................ 1,897 1,901 1,899 1,898 1,897 0 0 0 0 0 9,492 9,492
Estimated Outlays............................... 455 1,860 1,900 1,899 1,898 1,442 38 0 0 0 8,012 9,402
Subtotal:
Estimated Budget Authority.................. 2,187 2,781 2,919 2,948 2,992 1,125 1,160 1,200 1,235 1,270 13,827 19,817
Estimated Outlays........................... 625 2,455 2,750 2,814 2,843 2,422 1,043 1,035 1,070 1,100 11,487 18,157
Other Provisions with Measurable Effects:
Estimated Budget Authority.......................... -35 -147 -134 -119 -99 -91 -94 -99 -99 -99 -534 -1,016
Estimated Outlays................................... 8 -142 -124 -124 -104 -91 -91 -96 -101 -96 -486 -961
Interaction Effects:
Estimated Budget Authority.......................... -195 -308 -351 -406 -456 -484 -521 -566 -591 -601 -1,716 -4,499
Estimated Outlays................................... -128 -238 -311 -351 -401 -429 -464 -494 -519 -549 -1,429 -3,884
Total Changes:
Estimated Budget Authority.......................... -3,468 -1,439 -1,701 -2,072 -2,363 -4,550 -4,855 -5,170 -5,480 -5,575 -11,043 -36,678
Estimated Outlays................................... -4,160 -960 -1,275 -1,601 -1,882 -2,598 -4,287 -4,610 -4,900 -5,190 -9,878 -31,463
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: ProGAP = Provisional Grant Assistance; SMART = National Science and Mathematics Access to Retain Talent.
Borrower Insurance Premiums and Guaranty Agency Fees. Under
current law, guaranty agencies may charge student and parent
borrowers of guaranteed loans an insurance premium of up to 1
percent. These premiums show up as part of the offsetting
collections in the student loan reserve account. In recent
years, many agencies have waived part or all of the premium,
thereby reducing these receipts, which are recorded on the
budget as offsets to direct spending. The bill would eliminate
this premium and replace it with a 1 percent fee that the
guaranty agencies would have to provide from their nonfederal
resources.
CBO estimates that the net effect of these changes, which
would become effective on April 1, 2006, would reduce direct
spending by $240 million in 2006, $1.5 billion over the 2006-
2010 period, and $3.7 billion over the 2006-2015 period.
Federal Lender Insurance. S. 1614 would reduce the portion
of defaulted loans for which lenders are reimbursed. The
reimbursements are paid from a federal student loan reserve
account consisting of separate reserve accounts for the various
guaranty agencies. Under current law, lenders are generally
reimbursed for 98 percent of the outstanding balances on loans
that go into default. Lenders who meet certain requirements are
classified as exceptional lenders, and they receive 100 percent
insurance.
S. 1614 would reduce the 98 percent insurance level to 97
percent, and would eliminate the exceptional lender
designation. For those lenders losing exceptional lender
status, the insurance rate would drop from 100 percent to 97
percent. CBO estimates that these changeswould reduce outlays
by $375 million in 2006, $860 million over the 2006-2010 period, and
$1.6 billion through 2015.
The bill also would reduce the rate at which the federal
government replenishes the reserve fund. However, these
transfers are intrabudgetary transactions and have no effect on
total federal spending or revenues.
Lender Fees. The legislation would increase fees charged
lenders on consolidation loans from 0.5 percent of the loan
principal to 1.0 percent. The additional fees would save an
estimated $425 million in 2006, $625 million over the 2006-2010
period, and $930 million over the 2006-2015 period.
Major Education Provisions Increasing Spending. The
provisions in Title X, Part A that would result in the largest
increases in spending are changes to origination fees paid by
borrowers, increases in loan limits, and funding for two new
programs to supplement the Pell Grant program. CBO estimates
that these provisions would cost $11.5 billion over the
20062010 period and $18.2 billion over the 2006-2015 period.
Borrower Origination Fees. S. 1614 would reduce borrower
origination fees for both subsidized and unsubsidized student
loans. Currently, origination fees for guaranteed loans are 3.0
percent (there is also an insurance premium of up to 1.0
percent). In the direct loan program, the origination fee is
also 3.0 percent (although in practice, the Department of
Education generally charges 1.5 percent up front and another
1.5 percent if the borrower fails to make timely payments).
Origination fees for student borrowers in the guaranteed
loan program would drop to 2.5 percent in July 2007 under the
legislation. In the direct loan program, S. 1614 would replace
the required 3.0 percent fee with a fee of up to 2.5 percent to
be determined by the Secretary of Education. CBO assumes that,
under the Secretary's discretion, the direct loan fee could
vary from year-to-year but would average 1.25 percent. CBO
estimates that these changes would increase outlays by $1.6
billion over the 2006-2010 period and by $4.1 billion over the
2006-2015 period.
Increased Loan Limits. The bill would increase the maximum
amount of subsidized loans for first- and second-year students
from $2,625 and $3,500, respectively, to $3,500 and $4,500. In
addition, the legislation would increase the limit for
unsubsidized loans for each year of graduate school from
$10,000 to $12,000. To conform the aggregate borrowing limits
to the latter changes, the limit on unsubsidized loans for most
borrowers would be increased by $10,000. Graduate students also
would be permitted to borrow through the parent-loan program.
In addition, students who require further undergraduate course
work to qualify for a graduate program or to gain a
professional license or certification would be eligible for
higher borrowing levels. CBO estimates that these increases
would boost aggregate student loan borrowing from both the
direct and guaranteed loan programs, and as a result, would
increase direct spending by $1.9 billion over the 2006-2010
period and by $4.5 billion over the 2006-2015 period.
ProGAP and SMART Grant Programs. S. 1614 would provide a
total of $9.5 billion for fiscal years 2006 through 2010 for
two programs that would supplement the Pell Grant program: the
Provisional Grant Assistance (ProGAP) program and the National
Science and Mathematics Access to Retain Talent (SMART) grants
program. CBO estimates that outlays from these appropriations
would amount to $455 million in 2006, $8.0 billion over the
2006-2010 period, and $9.5 billion over the 2006-2015 period.
The ProGAP program would give approximately $1.45 billion
in additional aid each academic year from 2006 through 2010 to
students who are eligible for the Pell Grant program and who
have submitted their student aid applications by June 30 for
the upcoming academic year. The Department of Education would
award these funds in the same manner as under the current Pell
Grant program.
The National SMART grants program would give $450 million
in additional aid each academic year from 2006 through 2010 to
Pell Grant recipients in their third or fourth year at an
institution of higher education with a major in mathematics,
science, technology, engineering, or a foreign language deemed
critical to the national security of the United States.
Recipients would be eligible for up to $1,500 for each academic
year.
CBO estimates outlays for the ProGAP and National SMART
grants programs based on the historical outlay rates of the
Pell Grant program.
Other Provisions With Measurable Effects. S. 1614 contains
numerous provisions that would have much smaller budgetary
effects than those described above. Among them are changes in
loan cancellation programs and the eligibility for interest
deferments. Other provisions with some estimated budget effects
during the 2006-2010 period include changes in the income
protection allowance for students and in the disbursement
requirements for certain loans for schools with low default
rates. Taken together, CBO estimates that these provisions
would cost $8 million in 2006, but would reduce direct spending
by $486 million over the 2006-2010 period and by $961 million
over the 2006-2015 period.
Interactions Among Education Provisions. The overall
reductions in direct spending that Part A would yield are
significantly larger than the sum of the individual provisions
because many of those provisions interact. For example, the
lender-yield and borrower interest ratechanges save even more
when the increased loan volume from the changes in loan limits is
considered. However, those same loan limit increases boost the costs of
the provisions that reduce borrowers' fees. On balance, the
interactions among the various provisions would generate additional
estimated savings of $128 million in 2006, $1.4 billion over the 2006-
2010 period, and $3.9 billion over the 2006-2015 period.
Direct Spending--Title X, Part B: Hurricane Katrina Higher Education
Recovery
S. 1614 the legislation would provide relief to certain
student loan borrowers and educational institutions that were
adversely affected by Hurricane Katrina. CBO estimates that the
total costs of this relief would be $105 million in fiscal year
2006 (with no effect after this year).
The largest portions of the costs are attributable to two
policies: (1) the cancellation of repayment for all student
loans that were disbursed for cancelled enrollment periods at
postsecondary schools that were closed, and (2) the requirement
that lenders provide up to one year of forbearance on student
and parent loans for borrowers affected by the hurricane and
that borrowers in a grace period or deferment period could
remain in that status through June 2006. CBO estimates, based
on data provided by the Department of Education, that the costs
of cancelling repayments for the loans that had been disbursed
for schools that closed as a result of the storm would be $64
million.
CBO estimates that the subsidy costs for the deferments and
forbearance on loans for borrowers affected by Hurricane
Katrina would amount to about $30 million. Data were not
available to precisely estimate the numbers of borrowers and
amount of outstanding principal that could be affected by this
policy. CBO used demographic and economic data from the Census
Bureau for the jurisdictions covered by the major disaster
designation for Hurricane Katrina to help estimate the
potential number of affected borrowers. CBO estimates that
student loan indebtedness for affected borrowers in the
affected areas is roughly $5 billion. The estimated gross costs
for requiring that lenders provide certain deferment and
forbearance benefits were reduced to reflect the likely use of
existing authority for deferment and forbearance of payments
for interest and principal for economic hardship.
S. 1614 would also waive the requirement for the return of
federal student aid in cases where the storm resulted in a
cancelled period of enrollment, and would exclude any
disbursements for cancelled enrollment periods from the
aggregate loan and grant aid limits for affected students. In
addition, student borrowers at schools affected by Hurricane
Katrina would be allowed to retain in-school status even if
they do not attend another school. Together, these three
provisions would cost an estimated $11 million in 2006.
Direct Spending--Other Amendments to the Higher Education Programs
S. 1614 would reauthorize--through 2011--the Higher
Education Act of 1965. Some portions of title IV of the bill
would affect direct spending, including the postponement of the
recall of Perkins Loan balances and changes in the eligibility
for student loans. In total, CBO estimates that enacting this
subtitle would increase direct spending by $6 million in 2006,
$77 million over the 2006-2010 period, and $2.7 billion over
the 2006-2015 period (see Table 4).
Distance Education. Current law limits participation in the
Title IV aid programs for institutions that provide more than
50 percent of their education or training courses through
distance education. S. 1614 would eliminate those restrictions
for institutions that meet certain criteria.
TABLE 3.--DIRECT SPENDING EFFECTS OF OTHER AMENDMENTS TO THE HIGHER EDUCATION ACT
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------------------------------
2006-
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2010 2006- 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Distance Education:
Estimated Budget Authority............................ 0 0 5 5 5 5 5 10 10 10 15 55
Estimated Outlays..................................... 0 0 5 5 5 5 5 5 10 10 15 50
Perkins Loan Revolving Fund:
Estimated Budget Authority............................ 0 0 0 0 0 0 361 675 696 800 0 2,532
Estimated Outlays..................................... 0 0 0 0 0 0 361 675 696 800 0 2,532
Eligibility Restrictions for Certain Drug Offenders:
Estimated Budget Authority............................ 10 15 15 15 15 15 20 20 20 20 70 165
Estimated Outlays..................................... 5 10 15 15 15 15 15 15 15 15 60 135
Other Provisions:
Estimated Budget Authority............................ * * * * * * * * * * * *
Estimated Outlays..................................... * * * * * * * * * * * *
Total Changes:
Estimated Budget Authority............................ 11 16 20 20 20 20 386 705 726 830 87 2,754
Estimated Outlays..................................... 6 11 20 20 20 20 381 695 721 825 77 2,719
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: *=Less than $500,000.
For a school to become an approved institution, it must
meet an extensive set of institutional eligibility
requirements. In addition, proprietary and postsecondary
vocational institutions are restricted by a two-year rule that
states that an institution must be legally authorized to give,
and has been giving, postsecondary instruction for at least two
consecutive years. Therefore, costs in the first two years
would be insignificant. After that, new and expanded
institutions would cause costs to rise by $15 million for the
2008-2010 period and by $50 million over the 2008-2015 period.
Perkins Loan Revolving Fund. Under current law, schools
participating in the Perkins Loan program are required to
return to the government the federal share of any balances they
hold beginning in 2012. S. 1614 would delay that date until
2020.
Based on data from the Department of Education, CBO
estimates that the recall of the federal share would total--
under current law--about $2.5 billion over the 2012-2015
period. Consequently, the delay that would result from enacting
the bill would reduce federal collections by that amount.
Eligibility Restrictions for Certain Drug Offenders. Under
current law, students are barred from receiving federal
financial assistance if they have been convicted of any drug
offense. The period of ineligibility lengthens with the number
of convictions and depends on whether the convictions were for
the sale or possession of the drugs. If the student
participates and successfully completes a drug rehabilitation
program, the period of ineligibility is shortened. S. 1614
would limit applicability of these restrictions to students
with convictions that occur while the student is receiving
federal aid. In addition, the Secretary could not require that
applicants for financial aid report their convictions.
Based on data on federal financial-aid applications, CBO
estimates that about 28,000 students are denied aid under the
current restrictions. CBO estimates that this provision would
increase annual student loan borrowing by $110 million to $140
million over the next 10 years. This borrowing would increase
the costs of the student loan program by $5 million in 2006,
$60 million over the 2006-2010 period, and $135 million over
the 2006-2015 period.
Spending subject to appropriation
S. 1614 would reauthorize the Pell Grant program through
2012. For 2006, CBO estimates that the authorization would
total $17.9 billion and that approximately 5.9 million students
would participate in the program, compared with an estimated
5.3 million in 2005. CBO estimates that S. 1614 would authorize
the appropriation of $105.6 billion over the 2006-2010 period,
with estimated outlays of $86.8 billion over that period.
If S. 1614 is enacted before fiscal year 2006
appropriations for the Department of Education, then these
costs would be treated as discretionary--subject to
appropriation. But if appropriations precede enactment of S.
1614, then any increase in spending from the level set by
appropriations for 2006 could constitute new direct spending.
The bill would authorize a maximum award level of $5,100
for 2006, which CBO estimates would result in approximately 5.9
million Pell participants. It would increase the maximum award
level by $300 for each year after 2006, up to $6,300 for 2010
(the bill does not specify maximum award levels for 2011 or
2012). S. 1614 would also raise the minimum and ``bump'' award
levels to 5 percent and 10 percent of the appropriated maximum
award level, respectively. The minimum award level, currently
set at $200, is used to determine eligibility for a Pell Grant.
The bump award level, currently set at $400, is the lowest
award amount that a student actually receives, so any student
eligible for between $200 and $399 currently receives $400.
In addition, the bill would allow students enrolled year-
round in two-year and four-year programs to receive multiple
awards in one academic year, limit the total period for which a
student is eligible for Pell Grants to 18 semesters, and
eliminate tuition sensitivity. The tuition sensitivity
provision limits the award level if a student's tuition is
below a specific level.
Finally, the bill would make certain changes to the
eligibility formula, many of which would not take effect until
July 2007. These include raising the income protection
allowance, reducing the asset conversion rate, raising the
income level at which a family is not expected to pay a portion
of education costs, and altering the eligibility restrictions
for those students with drug convictions. These changes were
discussed in more detail in the previous section.
Besides the Pell Grant program, S. 1614 would amend and
extend the authorization for numerous existing higher education
programs and would establish new ones. These programs include
teacher quality enhancement grants; aid to historically black,
hispanic, Indian, and other special institutions; campus-based
grant aid; international education; as well as various
scholarships and fellowships. The bill also would reauthorize a
set of outreach and support programs (formally referred to as
the Federal TRIO programs) intended to assist disadvantaged
students make academic progress from middle school through
post-baccalaureate programs. For all the programs, the bill
would authorize the appropriation of such sums as may be
necessary through fiscal year 2011. Under theGeneral Education
Provisions Act, the authorization for these programs would
automatically be extended for one additional year (2012) if necessary.
In fiscal year 2005, funding for these programs totaled over $4
billion.
Estimated impact on state, local, and tribal governments:
S. 1614 contains no intergovernmental mandates as defined by
UMRA. The bill would provide assistance to states and
institutions of higher education affected by Hurricane Katrina.
The bill also would authorize funding for student aid and
higher education programs, much of which would go to public
institutions of higher education. Any costs to those
institutions or to state, local, or tribal governments would
result from complying with conditions for receiving federal
assistance.
Estimated impact on the private sector: The provisions of
S. 1614 do not contain any private-sector mandates as defined
by UMRA.
Previous CBO estimates: CBO has transmitted a number of
cost estimates earlier this year for legislation that would
affect higher education programs.
CBO has provided estimates for the reconciliation
recommendations of the Senate Committee on Health, Education,
Labor, and Pensions on October 24, 2005. The education
provisions in that legislation, incorporated by the Senate
Committee on the Budget in S. 1932, are identical to those in
S. 1614 and thus have the same estimated budgetary effects. S.
1932, as passed by the Senate on November 3, 2005, contained
provisions that would have reduced borrower origination fees
more than in S. 1614, as well as create a one-time mandatory
program for elementary and secondary education funding for
students displaced by Hurricane Katrina.
CBO also provided estimates for H.R. 609, the College
Access and Opportunities Act of 2005, as ordered reported by
the House Committee on Education and the Workforce on September
16, 2005, and for the reconciliation recommendations of the
House Committee on Education and the Workforce on October 31,
2005. Those pieces of legislation contain many of the same
provisions as in S. 1614, but also would make different changes
to borrower interest rates, lender and borrower fees, mandatory
administrative expenses, and payments to guaranty agencies.
Estimate prepared by: Federal spending: Deborah Kalcevic,
Chad Chirico, and Justin Humphrey; impact on state, local, and
tribal governments: Lisa Ramirez-Branum; impact on the private
sector: Naveel Alsalam.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
VI. Application of the Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1, the Congressional
Accountability Act (CAA), requires a description of the
application of this bill to the legislative branch. S. 1614
does not amend any act that applies to the legislative branch.
VII. Regulatory Impact Statement
The committee has determined that the bill may result in
some additional paperwork, time, and costs to the Department of
Education, which would be entrusted with implementation and
enforcement of the act. It is difficult to estimate the volume
of additional paperwork necessity by the bill, but the
committee does not believe it will be significant. Pursuant to
the requirements of paragraph 11(b) of Rule XXVI of the
Standing Rules of the Senate, the committee has determined that
the bill will not have a significant regulatory impact.
VIII. Section-by-Section Analysis
Section 1 provides a short title and sets forth the table
of contents.
Section 2 clarifies that references regarding an amendment
to or repeal of a provision or section all refer to provisions
or sections of the Higher Education Act of 1965 (20 U.S.C. 1001
et seq.).
Section 3 establishes that the general effective date of
these amendments is July 1, 2006, except as otherwise provided.
TITLE I--GENERAL PROVISIONS
Part A--Definitions
Section 101. Additional definitions
The term ``authorizing committees'' means the Committee on
Health, Education, Labor, and Pensions of the Senate and the
Education and Workforce Committee of the House of
Representatives. References to the ``Chairman'' or ``Chairmen''
now read ``Chairpersons of the authorizing committees.''
Section 102. General definition of institution of higher education
The definition of an institution of higher education will
also include institutions that award degrees that are
acceptable for admission to a graduate or professional degree
program, subject to the review and approval of the Secretary of
Education. This section expands the definition of an
institution of higher education to include a public or
nonprofit private educational institution that admits as
regular students those students who have completed secondary
school in a home school setting and students who are dually or
concurrently enrolled in the institution and a secondary
school.
Section 103. Definition of institution of higher education for purposes
of Title IV programs
Section 103 deletes a provision that excluded certain
foreign medical schools from the requirement that 60 percent of
their graduates be American citizens and pass the exam
administered by the Educational Commission for Foreign Medical
Graduates.
This section maintains current limitations on enrollment of
incarcerated students and students without a secondary school
diploma or its recognized equivalent. The section modifies
restrictions based on mode of delivery, so that an institution
of higher education, other than a foreign institution, that
offers education or training programs principally through
distance education meets the definition of an institution of
higher education if it has been accredited by an agency or
association that the Secretary recognizes under title IV and
that has evaluation of distance education programs within the
scope of its recognition. The institution must also be
otherwise eligible to participate in title IV programs, must
not have had its participation in title IV programs suspended
or terminated within the 5 years preceding the year for which
the determination is made, must not have had or failed to
resolve an audit or program review during the 2 preceding years
that required the institution to repay an amount equal to or
greater than 25 percent of the total funds the institution
received under title IV programs, and must meet the other
requirements for an institution of higher education as defined
in section 102.
``Distance education'' is defined to mean a course or
program that uses one or more kinds of technology to deliver
instruction to students and support interaction between
students and instructors. The technologies include the
Internet, audio conferencing, video, DVDs, CD-ROMs, and one-way
and two-way transmissions through open broadcasts, closed
circuit, cable, broadband, fiber optics, or wireless
communication devices.
Part B--Additional General Provisions
Section 104. Protection of student speech and association rights
Includes a sense of Congress that: diversity of
institutions is a key strength of higher education; individual
colleges and universities have different missions and each
should design its academic program in accordance with its
educational goals; colleges should facilitate free and open
exchange of ideas; students should not be intimidated,
harassed, discouraged from speaking out, or discriminated
against; and students should be treated equally and fairly.
Clarifies that the new language should not be construed to
modify or infringe upon any constitutionally protected
religious liberty, freedom, expression, or association and
should not be construed to discourage the imposition of an
official sanction on a student that has willfully disrupted a
lecture, class, speech, presentation, or performance scheduled
or made under the auspices of the institution provided that the
imposition of the sanction is objective and fair.
Section 105. National Advisory Committee on institutional quality and
integrity
This section extends the authorization date from September
30, 2004 to September 30, 2011.
Section 106. Drug and alcohol abuse prevention
``Grants Directed at Reducing Higher Education Drug and
Alcohol Abuse'' will replace the old ``Alcohol and Drug Abuse
Prevention Grants'' and ``National Recognition Awards.'' The
purpose of these grants is to reduce the rate of drug abuse,
underage alcohol use, and binge drinking among students at
institutions of higher education. An eligible entity is a
State, an institution of higher education, or a nonprofit
entity.
The timing, manner, and information required for
applications will be determined by the Secretary. Each
application will include a description of how the entity will
enhance or build a statewide coalition, how the entity will
target underage students, how the entity will ensure the
coalition is implementing the purpose of the grants and moving
toward the achievement indicators, a list of the members of the
coalition or interested parties, how the entity will work with
State agencies, how these funds will reduce rates of drug and
underage alcohol abuse, and how the entity will reach out to
students, address the needs of students and communities, and
address community norms for students regarding drug and alcohol
abuse.
A ``statewide coalition'' is a coalition that works toward
lowering the alcohol abuse rate by targeting underage students
at institutions of higher education and the surrounding
communities and includes institutions of higher education and a
State and a nonprofit group, community drug and alcohol abuse
prevention coalition, or another substance abuse prevention
group within a State. The ``surrounding community'' surrounds
an institution of higher education, has students from the
institution who take part in the community and has students who
live off campus in the community.
When the Secretary first publishes a notice in the Federal
Register soliciting applications for these grants, the
Secretary will include achievement indicators for this program.
The achievement indicators will measure the impact that the
coalitions have on the institutions of higher education and
surrounding communities, measure the quality and accessibility
of the programs or information offered by the coalitions, and
other measures as the Secretary determines appropriate.
These funds will supplement, not supplant, Federal and non-
Federal funds available for carrying out these activities. Not
more than 5 percent of a grant may be used for administrative
expenses. Such sums as may be necessary are authorized for
fiscal year 2006 and each of the 5 succeeding fiscal years.
Section 107. Prior rights and obligations
Section 107 extends the authorization of appropriations
under section 121 of the act from fiscal year 1999 to fiscal
year 2006 and succeeding fiscal years.
Part C--Cost of Higher Education
Section 108. Cost of higher education
Section 108 expands the information that the Secretary will
make available to the public on an annual basis. The college
consumer information that the Secretary will make available and
update regularly will include the average annual cost of
attendance for a first-time, full-time undergraduate student
for periods of 5 and 10 years preceding the year for which the
information is made available and a ranking of the dollar
amount and percent increases in tuition and fees for all
institutions for which data are available.
The national study of expenditures at institutions of
higher education will be conducted on an annual basis. The
study will now include in its evaluation the average cost of
attending an institution, disaggregated by category; the
average annual cost of attending an institution for periods of
5 and 10 years preceding the year for which the information is
made available, disaggregated by category; and State assistance
to institutions.
The categories to be used are: all institutions of higher
education; 4-year, public, degree-granting institutions; 2-
year, public degree-granting institutions; 4-year, non-profit,
private degree-granting institutions; 2-year, nonprofit,
private degree-granting institutions; 4-year, for-profit,
private degree-granting institutions; 2-year, for-profit,
private degree-granting institutions; and less than 2-year,
for-profit, private institutions.
The Bureau of Labor Statistics will now develop a higher
education cost index, in consultation with the Commissioner of
Education Statistics, which tracks inflation changes in the
relevant costs associated with higher education.
Part D--Administrative Provisions for Delivery of Student Financial
Assistance
Section 109. Performance-based organization for the delivery of Federal
Student Financial Assistance
The functions of the Performance-Based Organization (PBO)
in the Department of Education are now referred to as
``administrative and oversight'' functions, and not
``operational.'' The Secretary will assist the Chief Operating
Officer in identifying goals for administration of the systems
used to administer the student aid programs and for updating
such systems to current technology.
The PBO will be responsible for administration of Federal
student financial assistance programs including the collection,
processing and transmission of data to students, institutions,
lenders, State agencies, and other authorized parties, and the
design and technical specifications for software development
and procurement for systems supporting the students financial
assistance programs of title IV. The PBO will also be
responsible for ensuring the integrity of the student
assistance programs authorized under title IV.
The PBO will be responsible for developing an annual budget
for its activities and functions. The Chief Operating Officer
will now consult with students in addition to other
stakeholders such as borrowers, institutions, lenders, guaranty
agencies, secondary markets, and others. The Chief Operating
Officer is no longer limited to appointing not more than 25
technical and professional employees to administer the
functions of the PBO.
Section 110. Procurement flexibility
The PBO will, through the Chief Operating Officer, use
procurement systems that streamline operations, improve
internal controls and enhance management, and assess the
efficiency of such systems and the systems' ability to meet PBO
requirements.
Contracts awarded on a ``sole-source basis'' are renamed
contracts awarded on a ``single-source basis,'' defined as a
contract 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.
TITLE II--TEACHER QUALITY ENHANCEMENT
The purpose of title II is to improve student achievement
and the quality of the Nation's teaching force by holding
higher education institutions accountable for preparing
teachers and promoting strategies to recruit qualified
individuals.
Part A--Teacher Quality Enhancement Grants for States and Partnerships
Section 201. Purposes and definitions
An ``early childhood education program'' is a Head Start or
Early Head Start program, a State childcare program or school,
or a State pre-kindergarten program. ``Early childhood
educator'' is an individual responsible for the education of
children in an early childhood education program. The term
``teacher mentoring'' is the mentoring of teachers through
established or implemented programs. ``Teaching skills'' are
the ability to: increase student achievement; convey and
explain academic subjects; conduct assessments of student
learning; manage a classroom; work with parents; and use age
appropriate strategies.
``Children from low-income families'' are children as
described in section 1124(c)(1)(A) of ESEA. ``Scientifically
based reading research'' is the term in section 1208 of ESEA.
The terms ``educational service agency,'' ``exemplary
teacher,'' ``highly qualified,'' ``professional development,''
and ``scientifically based research'' have the same meanings
given to them in section 9101 of ESEA.
Section 202. State grants
An application must demonstrate that the eligible State
complies with the various sections in title II and is
consistent with State, local and other education reform
activities. It must include measurable objectives and describe
the State's capacity to measure teacher preparation programs.
The application must detail efforts to reduce teacher shortages
and expand the integration of statewide data systems to measure
the effectiveness of teacher preparation programs. Grantees
must ensure that teacher preparation programs are preparing
highly qualified teachers to understand scientifically based
research and to use technology effectively. States must align
teacher certification or license requirements with content
standards and assessments and create requirements for high-need
areas. A State must evaluate annually the effectiveness of
teacher preparation programs and make the report widely
available to the public.
States may also use grant funds to carry out any of the
following activities: providing alternative routes to
certification or licensure; implementing innovative programs to
enhance the ability of higher education institutions;
developing mechanisms to recruit and retain teachers; creating
teacher scholarships; removing incompetent or unqualified
teachers; building systems to measure the effectiveness of
teacher preparation programs and gains in student academic
achievement; developing strategies to expand programs and
professional development opportunities; assisting teachers to
use technology effectively; increasing the number teachers in
high-need areas; offering technical assistance to low-
performing teacher education programs; and performing
evaluations of programs.
Funds made available must be used to supplement and not
replace other Federal, State, and local funds already
designated for similar programs and activities.
Section 203. Partnership grants
Eligible partnerships include: a school or department
within a partner institution focusing on education, psychology,
or human development; a science-, mathematics-, or technology-
oriented group; an educational service agency; a consortium of
local educational agencies; and a non-profit telecommunications
entity.
Each application must contain a needs assessment of all the
partners and include a description of the extent to which the
teacher preparation program prepares new teachers and how the
partnership would coordinate with other programs. An
application must include a resource assessment of the resources
available to the eligible partnership and an evaluation plan.
In addition, it must describe how the partnership would do the
following: align the teacher preparation program with academic
achievement, early learning, and content standards; connect
faculty at partner institutions with teachers and their
classrooms; ensure that educators receive information about the
various activities offered by the grant; design or enhance both
a clinical and induction program; collect, analyze, and
disseminate data on teacher retention.
The focus of professional development activities under this
program is on new teachers. Funds may be used for developing
alternatives to traditional preparation for certification and
licensure, recruitment, innovative programs, teacher
scholarships, coordination with community colleges, clinical
experience, professional development, technology, increasing
the number of teachers in high-need areas, instruction,
master's degree programs, and literacy training.
Partnership members must regularly consult throughout the
development and implementation of programs and activities.
Funds made available must supplement and not replace other
Federal, State, and local funds already designated for similar
programs and activities.
A partnership is eligible to receive only one grant during
a 5-year period. Individual members within a partnership are
eligible to receive another grant during this period by
participating in other partnerships with different members.
Section 204. Administrative provisions
Section 204 of the act, Teacher Recruitment Grants, is
deleted.
Section 205. Accountability and evaluation
States that receive grants under section 202 must submit
annual reports to the Secretary of Education and the
authorizing committees. States must report on student
achievement, raising standards, initial certification or
licensure, the percentage of highly qualified teachers, teacher
shortages, and professional development opportunities.
Partnerships must evaluate the percentage of highly
qualified teachers hired by the high-need local education
agencies and the percentage of highly qualified teachers
working within the various targeted demographics.
Section 206. Accountability for programs that prepare teachers
States annually receive reports from institutions of higher
education that have teacher preparation programs and enroll
students receiving Federal financial aid. The reports must
include how the program is using technology. In addition, each
eligible partnership receiving a grant under section 203 will
report annually on the progress made toward meeting identified
goals.
States must submit annually a report card on the quality of
teacher preparation to the Secretary of Education. The
Secretary may not create a national list or ranking of States
or schools based on these reports. The Secretary must provide
Congress with a report card on teacher qualifications and
preparation in the United States. The content of the report
must contain a comparison of States' and eligible partnerships'
efforts to improve the quality of the teaching force.
Section 207. State functions
If a State terminates financial support for a teacher
preparation program due to low performance, the program must
provide transitional support for students enrolled at the
institution at the time of the termination.
Section 208. General provisions
A State educational agency must provide to a teacher
preparation program, upon request, any education-related
information the agency has gathered about the teacher
preparation program.
Section 209. Authorization of appropriations
Section 209 authorizes such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal years.
Fifty percent of the funds is available for each fiscal year to
award grants to States under section 202. The remaining 50
percent of the funds is available for each fiscal year to award
grants to local partnerships under section 203. If there are an
insufficient number of applications under either section 202 or
203, the Secretary of Education may reallocate remaining funds
to the other section.
TITLE III--INSTITUTIONAL AID
There is a national interest to aid institutions that
historically serve students who have been denied access to
postsecondary education because of race or national origin. It
is important to ensure these schools have sound management and
fiscal operations and the technical capacity to offer equal
educational opportunities to the students they serve. The
purpose of the title is to provide Federal assistance through
programs to institutions of higher education that serve high
percentages of minority students and students from low-income
backgrounds.
Part A--Strengthening Institutions
Section 301. Program purpose
Special consideration for awarding grants includes student
services. The types of grant activities are expanded to include
using grant aid for education or counseling services designed
to improve financial literacy of students or their parents.
Section 302. Definitions; eligibility
Section 302 makes a technical change to existing law.
Section 303. American Indian tribally controlled colleges and
universities
The definition of a ``Tribal College or University'' is
amended to include institutions identified in section 2 of the
Tribally Controlled College or University Assistance Act of
1978, a tribal college or university listed in the Equity in
Educational Land Grant Status Act of 1994, or the Navajo
Community College Assistance Act of 1978.
Allowable uses of grant funds are expanded. Institutions
may use grant aid for education or counseling services designed
to improve financial literacy of students or their parents.
Additionally, funds may be used to develop or improve distance
learning or Internet capabilities.
The Secretary of Education may reserve 30 percent of a
fiscal year's appropriated funds to award at least $1 million
for maintenance and renovation at eligible institutions.
Preference is given to a tribally controlled college or
university that has never received an award under section 316.
The Secretary of Education would use remaining appropriated
funds to award grants on a formula basis. All such grants would
be in the amount of at least $500,000. Sixty percent of these
funds would be awarded proportionally, based on the number of
Indian students enrolled at these colleges and universities.
The remaining 40 percent would be distributed equally among all
eligible schools.
Colleges or universities that are eligible for and receive
funds under section 316 would not be eligible to receive any
additional funding, concurrently, under part A or B of title
III. Eligible institutions would not be subject to the wait-out
period with respect to new funding under section 316.
Section 304. Alaska native and native Hawaiian-serving institutions
Institutions may use grant aid for education or counseling
services designed to improve financial literacy of students or
their parents.
Section 305. Native American-serving, nontribal institutions
Section 305 authorizes a new grant program specifically for
Native American-serving, nontribal colleges or universities.
The Secretary of Education must provide grants of at least
$200,000 for schools to improve their capacity to serve Native
Americans. Grants may be used to fund the following types of
activities: purchasing scientific or laboratory equipment,
books, and other educational material; renovating classrooms,
libraries, or other instructional facilities; and supporting
faculty and curriculum development, tutoring and other student
support services.
In order to be eligible for a grant, the institution may
not be a tribal college or university and at least 10 percent
of the undergraduate enrollment must be composed of Native
American students. Additionally, institutions that are eligible
for or receive funds under section 318 would not be eligible to
receive any additional funding, concurrently, under part A or
part B of title III. This section waives the requirement in
section 313(d), allowing eligible institutions to apply for new
funding once the grant expired.
Part B--Strengthening Historically Black Colleges and Universities
Section 306. Part B definitions
This section adds the Commissioner for Education Statistics
to the entities determining the ``professional and academic
areas in which Blacks are underrepresented.''
Section 307. Grants to institutions
Institutions may be able to use grant aid for education or
counseling services designed to improve financial literacy of
students or their parents.
Section 308. Allotments to institutions
In order to receive an allotment of funds, eligible
historically black colleges and universities must provide
institutional data on the number of enrolled Pell grant
recipients and graduates from the past academic year as well as
the number of graduates in the past 5 years who enrolled in a
graduate or professional school.
Section 309. Professional or graduate institutions
Institutions may use grant aid for education or counseling
services designed to improve financial literacy of students or
their parents or for various academic student support services.
Funds may also be used to acquire property adjacent to colleges
and universities.
The following three universities are added to the list of
qualified graduate programs: Alabama State University, Coppin
State University, and Prairie View A&M University.
In determining awards, the Secretary shall consider the
amount of non-Federal funds that come from the institution's
own resources as well as private donors, State allocations and
the amount of institutional funds designated for Federal
matching dollars. In addition, the Secretary would determine
funding based on the percentage of the institution's Black
American and minority students who receive their first graduate
or professional degree in comparison to thetotal number of
Black American and minority students who earn their first graduate or
professional degree.
Section 310. Authorization of appropriations
Section 310 authorizes such sums as may be necessary for
all programs under title III for fiscal years 2006-11.
Section 311. Technical corrections
Section 311 makes technical and conforming changes
throughout title III.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
The purpose of part A is to increase participation of
eligible students in higher education with grants for student
financial assistance, State assistance and programs, special
programs and projects, and institutions of higher education.
Section 401. Federal Pell grants
Section 401 raises the authorized level for a maximum
Federal Pell grant for eligible students to $5,100 for academic
year 2006-07; $5,400 for academic year 2007-08; $5,700 for
academic year 2008-09; $6,000 for academic year 2009-10; and
$6,300 for academic year 2010-11. This section revises the
minimum grant award from $400 to 10 percent of the maximum
authorized award for an award year. Students eligible for an
award less than 10 percent of the maximum award but more than 5
percent of the maximum award would receive an award equal to 10
percent of the maximum award. Students eligible to receive an
award of an amount less than 5 percent of the maximum award
authorized would not receive any Pell grant assistance.
The Secretary of Education shall allow eligible students
seeking to enroll in additional academic sessions (e.g., year-
round coursework or summer semester in addition to fall and
winter semesters) to receive up to two Pell grants in a single
award year. Students would need to be enrolled at least on a
half-time basis in a 2- or 4-year program of instruction and
for more than 1 academic year in order to be eligible to
receive a second Pell grant. The total monetary amount of the
two awards combined may exceed the mandatory maximum grant
level specified in the Appropriations Act for that given award
year.
The ``tuition sensitivity'' provision, that could
negatively affect award amounts for students attending low-cost
institutions, such as community colleges, has been eliminated.
Eligible students may only receive Pell grants for up to 18
semesters, or a time period equivalent to 18 semesters.
Section 402. Federal TRIO grants
Awarded grants or contracts may be provided for a 5-year
period, but grants identified specifically for staff training
and development may only be for a 2-year period. The duration
of a grant for evaluation and assessment of a program is be
determined by the Secretary of Education. All awards for an
individual grant would be at least $200,000, except for staff
training and development programs. For these particular
programs awards would be at least $170,000.
The Secretary must establish outcome criteria for measuring
the quality and effectiveness of the Talent Search, Upward
Bound, Student Support Services, Postbaccalaureate Achievement,
and Educational Opportunity Centers programs. The Secretary is
required to measure secondary school completion, postsecondary
enrollment, and postsecondary completion outcomes for students
served by the grant programs. Programs would be assessed on how
they meet or exceed their various objectives.
Section 402B. Talent Search
Talent Search programs must provide the following
activities: academic tutoring; assistance in selecting
secondary courses and applying for college; information on and
assistance in completing financial aid forms; guidance to high
school drop outs; and services designed to improve student or
parent financial and economic literacy. The section also
expands the permissible services component to include programs
for students with disabilities and those who are homeless or in
foster care.
Section 402C. Upward Bound
The amendments alter and strengthen the required services
component for Upward Bound programs. Upward Bound programs must
provide the following activities: academic tutoring; assistance
in selecting secondary courses and applying for college;
information on and assistance in completing financial aid
forms; guidance to high school drop outs; and services designed
to improve student or parent financial and economic literacy.
In addition to those with limited English proficiency, the
permissible services component is expanded to include programs
for students with disabilities and those who are homeless or in
foster care.
Section 402D. Student Support Services
The purpose of Student Support Services is expanded to
include improving students' financial and economic literacy,
such as personal income and financial planning. In addition to
creating a supportive institutional climate for low-income and
first generation college students as well as individuals with
disabilities, this program may also support students with
limited English proficiency and those who are homeless or in
foster care.
Student Support Services programs must provide the
following activities: academic tutoring; assistance in
selecting postsecondary courses, transferring from a 2-year to
a 4-yearprogram, or enrolling in graduate programs; information
on and assistance in completing financial aid forms; and services
designed to improve student or parent financial and economic literacy.
The permissible services may include securing temporary housing during
school breaks for students who are homeless or in foster care.
Section 402E. Postbaccalaureate Achievement Program authority
Activities under this program may include education or
counseling services, mentoring programs, and exposure to
cultural events and academic programs.
Section 402F. Educational Opportunity Centers
The purpose of Educational Opportunity Centers is expanded
to include improving student or parent financial and economic
literacy, such as personal income and financial planning. Funds
could be used for education or counseling designed to improve
students' financial and economic literacy as well as personal,
career, and academic counseling. In addition to those with
limited English proficiency, funds may be used to assist
students with disabilities and those who are homeless or in
foster care.
Section 402H. Reports, evaluations, and grants for project improvement
and dissemination
The title of section 402H would change from ``Evaluations
and Grants for Project Improvement and Dissemination
Partnership Projects'' to ``Reports, Evaluations, and Grants
for Project Improvement and Dissemination.'' The Secretary of
Education must submit a report at least once every 2 years,
highlighting the number of grants awarded, the number of
individuals served by the programs as well as information about
these individuals, and the outcomes achieved by the various
programs and comparing grant awards during the fiscal year to
those from recent grant cycles.
Section 403. Gaining Early Awareness and Readiness for Undergraduate
Programs (GEAR UP)
Section 403 eliminates the current law priority for
eligible entities that had previously carried out programs
under chapter 2 prior to the Higher Education Amendments of
1998.
This section requires the Secretary of Education to
consider the geographic distribution of awards and the
distribution of awards between urban and rural applicants.
Section 403 also removes the current law limitation on the
amount of funds used specifically for early intervention. The
section shifts requirements that activities not displace other
employees and that grantees have adequate coordinating staff
into the list of information that must be provided as part of
the grantee's application. Entities must ensure that grants
awarded would be used to supplement and not supplant Federal,
State and other local funds used for similar activities and
programming.
The title of section 404C is changed from ``Eligible Entity
Plans'' to ``Applications.'' The contents of an application for
a grant must include: description of how the entity meets the
scholarship requirements; demonstration of adequate staffing
for coordinating activities; assurance that activities would
not displace employees or eliminate positions at schools;
description of how the entity defines the targeted cohort and
serves the cohort through grade 12; description of program
coordination with existing Federal, State, and local projects;
and required activities.
The title of section 404D is changed from ``Early
Intervention'' to ``Activities.'' Grantees are required to
carry out the following activities: provide information on
financial aid to the cohorts; encourage student enrollment in
challenging secondary coursework; support activities designed
to lead to students graduating from high school and enrolling
in institutions of higher education; and provide scholarships.
Grantees may also use funds for tutoring, mentors, outreach,
secondary and postsecondary support services, development or
implementation of rigorous secondary curricula, dual
enrollment, college visits, extended school day programs, or
scholarships. States would be given the option to promote
additional activities, such as technical assistance to middle
or secondary schools, professional development opportunities,
strategies to increase postsecondary enrollment and graduation
rates, alignment of secondary and postsecondary curricula and
standards, alternatives to the traditional secondary school
that provide a stronger link between high school and
postsecondary options, drop out recovery programs, and
dissemination of best practices.
States receiving grant funds under this chapter must use at
least 25 percent and no more than 50 percent of funds for
scholarships for eligible students. Remaining funds would be
used for activities described in section 404D. Grantees could
use more than 50 percent of their funds for these activities if
they have other means of providing financial assistance.
Entities must notify students when they enter the programs
of the eligibility requirements to receive a scholarship. Each
grantee must create or organize a trust for each cohort of
students. The trust must provide each student in the cohort
with, at a minimum, an amount equal to the minimum Pell grant
award described in section 401. Funds in a trust would become
available to a student once he or she graduated from high
school or the equivalent and enrolled in a 2- or 4-year
institution. Students could use funds for qualifying
educational expenses, including tuition, fees, books, supplies,
equipment, and designated special needs.
Trust funds not used within 6 years of the student's
expected date of completion from secondary school could be
redistributed to other eligible students. Excess or unused
funds by an entity would be returned to the Secretary of
Education. The Secretary would then redistribute the funds to
other grantee entities.
Section 404F of the existing law, 21st Century Scholarship
Certificates, is repealed. Sections 404G and 404H are
redesignated as sections 404F and 404G.
Section 403 authorizes such sums as may be necessary for
fiscal years 2006-11.
Section 404. Academic Achievement Incentive scholarships
This chapter is repealed.
Section 405. Federal Supplemental Educational Opportunity grants
The allowance of books and supplies used to compute the
average cost of attendance is raised from $450 to $600.
Section 406. Leveraging Educational Assistance Partnership Program
Applications for Leveraging Educational Assistance
Partnership Programs. The monetary amount allocated by States
for an individual student grant increased from a maximum of
$5,000 per academic year to either a maximum of $12,500 per
academic year or the student's cost of attendance, whichever is
less. States must notify eligible students that aid is from
Leveraging Educational Assistance Partnership grants and funded
by the Federal Government, the States, and other contributing
partners.
Grants for access and persistence
The title for section 415E, ``Special Leveraging
Educational Assistance Partnership Program.'' would be changed
to ``Grants for Access and Persistence.'' The purpose of this
section is expanded to include college access and persistence
by making State allotments to: expand and enhance partnerships
with institutions of higher education; provide need-based
grants to eligible low-income students; provide early
notification of eligibility for financial aid; and encourage
participation in early information, intervention, and other
outreach programs.
States desiring an allotment must submit an application to
the Secretary of Education. The application must describe the
State's plan for using the funds and the organizational
structure to administer the various activities and assure that
the State provides the non-Federal share and that early
information, intervention, and other outreach programs exist.
An application must also explain the State's methods for
identifying and awarding grants to eligible students. State
agencies must apply for an allotment in partnership with the
following organizations or entities: at least one private and
one public college or university located in the State, if
applicable; early information, intervention, and other outreach
State programs; and at least one State philanthropic
organization or private corporation.
The Secretary makes an allotment to States to pay the
Federal share of the cost of carrying out the various
authorized activities. The amount of the Federal share is
determined by the percentage of full-time students enrolled in
the State's partnership colleges and universities in comparison
to the total number of students attending institutions of
higher education in the State. The Federal share is 50 percent
if enrollment in the State's partnership schools represents
less than a majority of all students attending colleges and
universities. The Federal share is 57 percent if enrollment in
the State's partnership schools represents a majority of all
students attending colleges and universities.
Each State receiving an allotment must use funds toward the
overall partnership to award grants for eligible low-income
students. If the State's partnership is with institutions
serving less than a majority of students in the State, the
monetary amount of an individual student grant would be at
least equal to the average undergraduate tuition and mandatory
fees at 4-year public institutions. If the State's partnership
is with institutions serving a majority of students in the
State, the monetary amount of an individual student grant would
be no more than equal to the average cost of attendance at 4-
year public institutions.
States must annually notify low-income students in grades 7
through 12 of their potential eligibility for financial
assistance. To be eligible to receive a grant, students must
meet at least two of the following criteria: have an expected
family contribution of zero; qualify for a free or reduced
lunch; qualify for the State's maximum undergraduate award; or
participate in early information, intervention, or other
outreach programs. Students would receive a grant for each year
of their undergraduate education, as long as they remained
financially eligible and meet the State's degree completion
time limits.
The State agency receiving an allotment must annually
report to the Secretary on the partnership's progress in
meeting identified goals and objectives. Within 3 years of the
enactment of the Higher Education Amendments of 2005 and
annually thereafter, the Secretary must submit a report to
Congress describing activities and the impact of the
partnerships.
Section 407. Special programs for students whose families are engaged
in migrant and seasonal farmwork
The services provided by the college assistance migrant
program are expanded to include internships. Program follow-up
services with students, after they complete their first year of
college, may include encouraging students to transfer from 2-
year to 4-year institutions of higher education.
The Secretary of Education shall allocate an amount no
greater than $180,000 for each project under the high school
equivalency program or the college assistance migrant program.
Section 408. Robert C. Byrd Honors Scholarship Program
This program is reauthorized for such sums in fiscal year
2006 and the 5 succeeding fiscal years.
Section 409. Child Care Access Means Parents in School
Section 409 sets the minimum grant level at $10,000 and
$30,000 when the amount appropriated for activities under this
section is equal to or greater than $20 million.
The definition of a ``low-income student'' is expanded to
include a person who would be eligible to receive a Pell grant
except that the student is enrolled in a graduate or
professional course or is in the United States for a temporary
period of time.
Section 410. Learning anytime anywhere partnerships
This entire chapter is repealed, including sections 420D,
420E, 420F, 420G, 420H, 420I, and 420J.
Part B--Federal Family Education Loan Program
The purpose of part B is to encourage States and nonprofit
private institutions and organizations to establish loan
insurance programs for students.
Section 422. Federal payments to reduce student interest costs
Student borrowers studying at an eligible foreign
institution must have the institution request that the
disbursement be made directly to the student, unless the
student is enrolled in a program of study abroad that is
approved for credit by their home institution. Under current
law, any student studying outside the United States may request
that the disbursement be made directly to them.
Section 423. Federal consolidation loans
Lenders of consolidation loans must disclose to those who
consolidate Federal Perkins loans that the borrower would lose
all interest-free periods. Borrowers do not accrue interest on
their Perkins loans when enrolled in school and during grace or
deferment periods. Lenders must also notify borrowers that they
would become ineligible for loan cancellation under the Perkins
loan program.
Section 424. Default reduction program
Section 424 requires guaranty agencies offering programs
that allow borrowers with defaulted loans to renew eligibility
on their loans after borrowers make six consecutive monthly
payments to make available financial and economic educational
materials before, during, or after rehabilitation of the loans.
Section 426. Reports to credit bureaus and institutions of higher
education
The Secretary of Education, guaranty agencies, eligible
lenders, and holders must include information about the type of
loan made, the repayment status of the loan, and any other
information mandated by Federal law when providing information
to consumer reporting agencies concerning student borrowers.
The information must be provided to all nationwide consumer
reporting agencies.
Section 428. Student loan information by eligible lenders
Lenders, guaranty agencies, secondary markets, consumer
reporting agencies, or loan servicers may only sell, transfer,
or give information about students for activities associated
with preventing defaults on loans. Each eligible lender,
holder, or servicer must provide the borrower with information
on loan benefit repayment options, including comprehensive
information on reducing interest rates.
Section 429. Consumer education information
Guaranty agencies working with institutions of higher
education must develop or use existing educational programs and
materials to provide training for students in budgeting and
financial management.
Section 430. Definition of eligible lender
Under current law, eligible lender institutions must use
proceeds from special allowance payments and interest payments
from borrowers for need-based grant programs. The bill would
require the proceeds from the sale of loans by eligible lender
institutions and all other proceeds to be used for need-based
grant programs as well, except for reasonable reimbursement for
direct administrative expenses.
Section 431. Repayment by the secretary of loans of bankrupt, deceased,
or disabled borrowers; treatment of borrowers attending schools
that fail to provide a refund, attending closed schools, or
falsely certified as eligible to borrow
The title of this section is changed from ``Repayment by
the Secretary of Loans of Bankrupt, Deceased, or Disabled
Borrowers; Treatment of Borrowers Attending Closed Schools or
Falsely Certified as Eligible to Borrow'' to ``Repayment by the
Secretary of Loans of Bankrupt, Deceased, or Disabled
Borrowers; Treatment of Borrowers Attending Schools that Fail
to Provide a Refund, Attending Closed Schools, or Falsely
Certified as Eligible to Borrow.''
Part C--Federal Work-Study Programs
The purpose of part C is to promote part-time employment of
undergraduate and graduate students who need earnings to pursue
their courses of study. Additionally, the goal of part C is to
encourage students receiving Federal financial aid to
participate in community service activities.
Section 441. Authorization of appropriations
Section 441 authorizes such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal years.
Section 442. Allowance for books and supplies
An institution's eligibility for funding under this part is
equal to the sum of the self-help need of all the school's
undergraduate and graduate students. The self-help of a student
is calculated using a variety of factors, including an
allowance for books and supplies. This allowance is increased
from $450 to $600.
Section 443. Grants for Federal work-study programs
Section 443 permits the Secretary to waive the community
service requirement under this part if an institution certifies
that at least 15 percent of its full-time student enrollment
participates in community service or tutoring or literacy
activities.
Section 444. Job location and development programs
Institutions may use no more than 10 percent or $75,000,
whichever is less, of their allotments to establish or expand
programs that locate and develop jobs for currently enrolled
students.
Section 445. Work colleges
Section 445 amends the purposes of this section to include
support for existing and new model student volunteer community
service projects associated with local institutions of higher
education.
Part D--William D. Ford Federal Direct Loan Program
Section 451. Funds for administrative expenses
There is authorized $904 million in fiscal year 2006,
increasing to $1.064 billion in fiscal year 2011 for use by the
Secretary to pay costs of administering the Direct Loan and
FFEL programs and to pay account maintenance fees to guaranty
agencies under the FFEL program.
Part E--Federal Perkins Loans
Section 461. Program authority
There are authorized such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal years to
enable the Secretary to make contributions to student loan
funds and such sums as necessary to enable students who have
received loans prior to October 1, 2012 to continue or complete
courses of study.
Section 462. Terms of loans
Students with Perkins loans in default shall not be
eligible for additional aid under title IV. Formerly,
ineligibility was limited to additional Perkins loans. Section
462 eliminates the requirement that requests for forbearance
must be made in written form.
Section 463. Cancellation of loans for certain public service
Section 463 adds to the list of those eligible for Perkins
loan cancellation: (1) full time staff members in a
prekindergarten or child care program that is licensed or
regulated by the State (in addition to Head Start), (2) full-
time faculty members at tribally controlled colleges and
universities, (3) librarians with a master's degrees in library
science who are employed in an elementary or secondary school
library eligible for assistance under title I of ESEA or in a
public school library that serves a geographic area that
contains one or more title I eligible schools, and (4) speech
and language pathologists working with students with
disabilities serving exclusively those schools that are
eligible for assistance under title I of the Elementary and
Secondary Education Assistance Act.
Part F--Need Analysis
Section 471. Cost of attendance
Section 471 amends factors used in determining cost of
attendance to include: (1) for less than half-time students,
room and board costs for not more than three semesters or the
equivalent, of which not more than two may be consecutive, and
(2) at the option of the institution, for students in programs
requiring professional licensure or certification, the one-time
cost of obtaining the first professional credential.
Section 473. Definitions
Section 473 strikes the provision that reduces cost of
attendance by the amount of prepayment made through tuition
prepayment plans and adds such plans (and other qualified
education benefits, including Coverdell education savings
accounts) to the definition of ``assets,'' except that such
qualified education benefits shall not be considered assets of
a dependent student when calculating expected family
contribution. The section specifies that assistance provided by
a State to offset a specific component of cost of attendance
may be excluded from both estimated financial assistance and
cost of attendance (and requires that if it is excluded from
one, it shall be excluded from both).
Part G--General Provisions Relating to Student Assistance
Section 481. Definitions
The term ``eligible program'' is expanded to include an
instructional program that utilizes direct assessment of
student learning or that recognizes the direct assessment of
student learning by others.
Section 482. Compliance calendar
This section directs the Secretary to provide institutions
of higher education a list of all reports and disclosures
required under this act at the beginning of each award year.
This information shall include the date each report is due, the
required recipients, the method of transmission, references to
the statutory authority, a description of the contents of the
report and any other information that the Secretary may
require.
Section 483. Forms and regulations
This section establishes common financial aid forms and
processing that are developed in cooperation with
representatives of agencies and organizations involved in
student financial assistance. These forms shall be produced,
distributed and processed free of charge and made available to
applicants in both paper and electronic formats and referred to
as the ``Free Application for Federal Student Aid'' or
``FAFSA''. The Secretary shall also develop and use a
simplified paper application form, to be known as the ``EZ
FAFSA'' to be used by families who have a zero expected family
contribution. The Secretary shall include on the EZ FAFSA any
data that is required by States, and publish annually in the
Federal Register a request for States to inform the Secretary
of questions they need on the FAFSA to gather information
relevant to State programs. All information on the FAFSA shall
be available to institutions of higher education, guaranty
agencies, and States. The Secretary shall make all efforts to
encourage all applicants to utilize the electronic forms,
including a simplified electronic application, and should
conduct a study on the feasibility of using downloaded forms to
ensure sufficient quality to meet processing requirements. The
Secretary shall use any realized savings from the phasing out
of the paper form to improve access to the electronic form and
make an annual report on progress in moving to the electronic
form. The Secretary shall permit an electronic form to be
submitted without a signature if a signature is subsequently
submitted or if the applicant uses a personal identification
number provided by the Secretary. The Secretary shall also
develop a streamlined reapplication form and process, including
both paper and electronic versions for an applicant who applies
for financial assistance in succeeding academic years. In the
reapplication process, families determined to have a zero
family contribution shall not be required to provide any
financial data.
The Secretary shall permit an applicant to complete a FAFSA
form in the years prior to postsecondary enrollment to obtain
from the Secretary a non-binding estimate of the applicant's
expected family contribution.
Section 484. Student eligibility
This section specifies that in order to be eligible to
receive aid under this title, a student must be a citizen or
permanent resident enrolled in an eligible program, be making
satisfactory progress in that program, not owe a refund or be
in default of a previous loan and have filed a FAFSA for aid
determination. An institution may determine that a student who
has completed six credit hours (or the equivalent) applicable
to a degree or certificate has the ability to benefit from the
education or training offered by the institution.
A student who is convicted of an offense involving the
possession of a controlled substance while enrolled in an
institution of higher education and receiving financial
assistance under this title shall lose eligibility under this
title for 1 year after the first offense; 2 years after the
second offense and indefinitely after the third offense. A
student who successfully completes a rehabilitation program may
resume eligibility before the end of the ineligibility period.
Students convicted of the sale of a controlled substance will
be ineligible for funds under this title for 2 years after the
first offense and indefinitely after the second offense. This
section clarifies that the FAFSA form will not be the mechanism
for enforcing these provisions.
Section 484 clarifies enrollment of students through
distance education programs, consistent with the changes made
in section 102, so that students enrolled in distance education
programs shall not be considered to be enrolled in
correspondence courses.
Section 485. Statute of limitations and state court judgments
Section 485 ensures that obligations to repay loans and
grant overpayments are enforced. In collecting any obligation
on Perkins loans, an institution of higher education shall not
be denied payment due to a claim of infancy by the borrower.
The section clarifies that payments are not due in the case of
a student who is deceased, and that payments may not be
required of a deceased student's estate.
Section 486. Institutional refunds
If a recipient of aid under this title withdraws from an
institution during a payment period or a period of enrollment,
the amount of grant aid returned by the individual or
institution is specified. An institution must allow for one or
more leaves of absence. Not later than 45 days after the date
of an institution's determination that a student withdrew from
the institution, the institution shall return the amount
required, and notify the student of the applicable
requirements.
Section 487. Institutional and financial assistance for students
This section requires that eligible institutions
disseminate information to prospective and enrolled students.
Each institution must disclose information on student financial
assistance and the procedures for applying for such assistance,
the cost of attending the institution and general information
about the academic and non-academic aspects of the school
programs. For the purposes of information on graduation rates,
the institution may exclude information on 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, if the students in that category exceed
20 percent of an institution's enrollment, include such
students, but exclude the time period the students were not
enrolled due to their service. The institution must also
provide an exit interview to borrowers of title IV loans which
shall include information on loan repayment, including the
effects of consolidation on total interest, fees and length of
repayment and the effects of that consolidation on underlying
loan benefits, including forgiveness, cancellation and
deferment. Also included should be the borrower's ability to
prepay the loan, tax benefits and the consequences of default.
Each institution participating in title IV must also
publicly disclose the institution's current transfer of credit
policy that includes a statement that the institution shall not
deny transfer of credit based solely on the accreditation of
the sending institution and a list of institutions with which
the institution has established articulation agreements.
This section requires institutions to provide information
on student body diversity, including the percentage of
enrolled, full-time students who are male, female, from a low-
income background, and a self-identified member of a major
racial or ethnic group.
Section 489. Early awareness of financial aid eligibility
The Secretary shall work with institutions of higher
education and other agencies involved in college access to
inform students who receive or are eligible to receive means-
tested benefits that they are potentially eligible for a
maximum Pell grant when they are in middle or high school
students or participants in Adult Basic Education programs.
These estimates should be as accurate as possible. In addition,
not later than 2 years after the enactment of the Higher
Education Amendments of 2005, the Secretary shall coordinate
with relevant entities to implement a public awareness campaign
on the availability of financial aid under this title.
Section 490. College access initiative
The Secretary shall direct each guaranty agency to provide
to the Secretary the information necessary for the development
of Internet Web links and access for students and families to a
comprehensive listing of postsecondary education programs,
publications and other services available in the State to help
interested persons access college.
Section 491. Program participation agreements
This section requires that an eligible institution
establish administrative and fiscal procedures and records to
ensure orderly and efficient administration of funds under this
title. An institution shall be considered in compliance with
the voter registration requirements if the institution
transmits such information electronically.
Each eligible institution must have not less than 10
percent of its revenues from sources other than funds provided
under this title. In the calculation of the 10 percent, an
institution may include funds from sources other than those
received under this title, matching funds, student payments
from eligible college savings plans established under section
529 of the IRS Code of 1986, funds paid by the student or on
behalf of the student by a third party, institutional aid and
funds generated by the institution from institutional
activities that are necessary for the education and training of
the institution's students. Failure to meet this requirement
for 1 year may result in the institution being placed on
provisional certification and allow the Secretary to increase
monitoring and reporting requirements. Failure to meet the
requirements for 2 consecutive years shall mean that the
institution is ineligible to participate in programs under this
title. The Secretary shall make all of this information
publicly available.
This section clarifies if an institution is subject to an
emergency action or its title IV participation is limited,
suspended or terminated, the Secretary shall require that the
institution prepare a teach-out plan for submission to the
institution's accrediting agency.
Section 492. Regulatory relief and improvement
This section maintains the quality assurance programs and
the experimental sites. The Secretary has the authority to
establish additional experimental sites in addition to
maintaining the existing sites if they wish to continue
participation.
Section 493. Transfer of allotments
This section allows institutions to transfer up to 25
percent of funds between its Federal Supplemental Educational
Opportunity Grant and Federal Work-Study accounts.
Section 494. Wage garnishment requirement
This section allows the Secretary and guaranty agencies to
garnish up to 15 percent of disposable pay of an individual to
collect the amount owed by the individual in the case of a loan
guaranteed under this title.
Section 496. Advisory committee on student financial assistance
This section adds to the purposes of the Advisory Committee
by requiring it to provide knowledge and understanding of early
intervention programs and to make recommendations that will
result in early awareness for low- and moderate-income families
of their eligibility for assistance under this title. It also
authorizes the Advisory Committee to make recommendations that
will expand partnerships among Federal and State Governments,
institutions of higher education and the private sector.
This section charges the Advisory Committee with reviewing
regulations under title IV of the Higher Education Act and
making recommendations to the Secretary to minimize regulatory
burdens for institutions of higher education. In the review of
regulations, the Advisory Committee shall convene not less than
two review panels of representatives of the relevant groups to
determine the necessity of the regulations, and recommend to
the Secretary the elimination of regulations that are
duplicative, unnecessary, inconsistent with other Federal
requirements or overly burdensome. The Advisory Committee shall
submit recommendations to the Secretary not later than 2 years
after the completion of negotiated rulemaking.
This section also charges the Advisory Committee with
conducting a study of innovative pathways to baccalaureate
degree attainment, such as dual enrollment, Pell grant program
changes, simplification, compressed or modular scheduling,
articulation agreements and programs that allow 2-year
institutions to offer BA degrees.
Part H--Program Integrity
Section 499. Recognition of accrediting agency or association
The criteria required for an accrediting agency to be
determined reliable by the Secretary have been expanded for
those agencies or associations seeking to evaluate institutions
or programs offering distance education. In addition to meeting
the other requirements of this part, the agency or association
must demonstrate to the Secretary that its standards
effectively address the quality of an institution's distance
education in curricula, faculty, facilities and other areas
identified in this subpart. But the agency or association will
not be required to have separate standards or policies for
evaluating distance education institutions or programs. The
agency or association must also demonstrate to the Secretary
that it requires an institution that offers distance education
to have a process in place so that the institution can
establish that the student who registers for a course is the
same student who participates, completes, and receives academic
credit for that course.
An agency or association must include in its standards for
accreditation consideration of student achievement, student
retention, course and program completion and, as appropriate,
State licensing examinations, job placement rates, and other
student performance information selected by the institution,
particularly that information used by the institution to
evaluate or strengthen its programs.
The agency or association must also demonstrate to the
Secretary that it will apply review procedures throughout the
accrediting process, including evaluation and withdrawal
proceedings that comply with due process procedures. These
procedures must now provide for an opportunity for written
response by any institution to be included in the evaluation
and withdrawal proceedings before final action. These
procedures must now provide for an opportunity for the
institution to appeal any adverse action, upon written request
of the institution, such as denial, suspension or termination
of accreditation or probation at a hearing prior to final
action before an appeals board. The appeals board must not
include current members of the agency or association's
underlying decision-making body that made the adverse decision
and it must be subject to a conflict of interest policy.
This part expands the information that the agency or
association must make available to the public and the State
licensing or authorizing agency, and must submit to the
Secretary. The information is a summary of agency or
association actions, including the accreditation or
reaccreditation of an institution and any findings made in
connection with the accreditation or reaccreditation. The
information will also include any final denial, withdrawal,
suspension or termination of accreditation, or placement on
probation of an institution, and any findings made in
connection with those actions.
This part adds distance education as a focus of reviews
that an agency or institution must do on a regular basis in
order to be recognized by the Secretary as a reliable
authority.
An agency or association must do onsite evaluations of
institutions that include a review of the federally required
information the institution or program provides its current and
prospective students. The agency or association must monitor
the growth of programs at institutions that have significant
enrollment growth. The agency or association must require an
institution to submit a teach-out plan for approval when any of
the following occur: the Department notifies the accrediting
agency of an action against the institution pursuant to section
487(d); the accrediting agency acts to withdraw, terminate, or
suspend the accreditation of an institution; or the institution
notifies the accrediting agency that the institution intends to
cease operations.
An agency or association must confirm as part of its review
for accreditation or reaccreditation that the institution
publicly discloses its transfer of credit policies and does not
deny transfer of credit based solely on the accreditation of
the sending institution.
Section 499A. Administrative capacity standard
Section 499A adds a subsection on the Treatment of Teach-
Outs at Additional Locations. A location of a closed
institution of higher education will be eligible as an
additional location of an eligible institution of higher
education for the purpose of a teach-out, if such teach-out has
been approved by the institution's accrediting agency.
An institution of higher education that conducts a teach-
out through the establishment of an additional location
described in paragraph (1) will be permitted to establish a
permanent additional location at a closed institution and will
not be required to meet the requirements of sections
102(b)(1)(E) and 102(c)(1)(C) for the additional location or to
assume the liabilities of the closed institution.
Section 499B. Program review and data
The Secretary will provide an institution with an adequate
opportunity to review and respond to any program review report,
and any relevant materials related to the report, before any
final determination is reached.
The Secretary will review and consider an institution's
response in any final program review determination. The
Secretary, at all times, will maintain and preserve the
confidentiality of any program review report or determination
until the requirements of paragraphs (6) and (7) are met, and
until a final program review determination is issued, other
than to the extent required to comply with paragraph (5),
except that the Secretary will promptly disclose any and all
program review reports to the institution of higher education
under review.
TITLE V--DEVELOPING INSTITUTIONS
Hispanic Americans historically struggle to enroll in and
graduate from institutions of higher education. Hispanic-
serving institutions provide a significant proportion of
postsecondary opportunities for Hispanic students despite
having limited resources and capacity. The purpose of this
title is to expand educational opportunities for Hispanic
students by enhancing academic offerings and resources of
colleges and universities that educate the majority of these
students.
Part A--Hispanic-Serving Institutions
Section 501. Definitions
The definition of a Hispanic-serving institution is
modified to eliminate the requirement that institutions
demonstrate that at least 50 percent of their Hispanic students
are low-income individuals.
Section 502. Authorized activities
Institutions may use grant aid for education or counseling
services designed to improve financial literacy of students or
their parents. Funds may be used to develop articulation
agreements and facilitate the transfer of students from 2-year
to 4-year institutions. Institutions may also utilize grants to
ensure support programs designed to prepare students to enroll
in core courses and successfully complete degree and major
requirements.
Section 503. Duration of grant
The Secretary of Education shall award a grant to a
Hispanic-serving institution for 5 years. These institutions
would be able to apply for new funding once the grant expired.
The 2-year wait-out-period before receiving an additional grant
is deleted.
Section 504. Postbaccalaureate opportunities for Hispanic Americans
A new program is created authorizing the Secretary of
Education to award grants to eligible Hispanic-serving
institutions that offer graduate certificates or degree-
granting programs.
Grant awards may be used to fund the following types of
activities: purchasing scientific or laboratory equipment,
books, and other educational material; building or renovating
classrooms, libraries, or other instructional facilities or
capabilities; supporting faculty and curriculum development,
tutoring and other academic student support services; and
collaborating with other colleges and universities to expand
graduate certificate opportunities or degree granting programs.
An application for a grant must explain how funds would be
utilized to improve postbaccalaureate education opportunities
for Hispanic and low-income students. It also must articulate
how the experience would lead to students gaining greater
financial stability and independence. The Secretary of
Education shall award grants to Hispanic-serving institutions
for up to 5 years and colleges and universities are only to
receive one award per fiscal year.
Section 505. Applications
Section 505 makes a technical change.
Section 506. Cooperative arrangements
Section 506 makes a conforming change.
Section 507. Authorization of appropriations
There are authorized to be appropriated such sums as may be
necessary for fiscal years 2006-11.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
There is a national interest in enhancing the capacity of
institutions of higher education in the United States to
produce graduates with international and foreign language
expertise and knowledge and to conduct research regarding such
expertise and knowledge.
Part A--International and Foreign Language Study
Section 601. Findings
Section 601 revises the findings section to reflect changes
in the world's geopolitical and economic landscapes that have
created a need for American expertise and knowledge about a
greater diversity of less commonly taught languages and nations
of the world. This title supports centers, programs, and
fellowships in American institutions of higher education,
including programs partnering with overseas institutions, to
increase the numbers of trained personnel and research in
foreign language, area studies and other international studies.
The Secretary shall consult with appropriate cabinet
secretaries to determine national priorities in these areas and
shall assist programs funded under this title to develop
surveys of graduates to enable a better scope of the
contribution of these programs in meeting the purposes of the
title.
Section 602. Graduate and undergraduate language and area centers and
programs
The Secretary is authorized to make grants to applicant
institutions of higher education to support comprehensive
foreign language or area study centers, including a network of
undergraduate programs. Grants may support teaching and
research materials, curriculum planning and development,
linkages with foreign institutions, instructors of less
commonly taught languages, and activities to improve
instruction. Fellowships support students at advanced study
levels, including doctoral and post-doctoral candidates.
Section 603. Undergraduate international studies and foreign language
programs
The Secretary is authorized to make grants under this
section to establish, strengthen and operate national language
resource and training centers at the undergraduate level. The
funds from these grants may provide for the development of new
teaching materials, the conducting or dissemination of
research, the training of teachers or the expansion of
experiences for students in foreign countries. In the
application, in addition to program quality information, the
applicant must include how the grant activities will reflect
diverse perspectives and a wide range of views and the method
used to resolve potential disputes over those diverse opinions
and a description of how the applicant will encourage
participants to consider government service. Only 20 percent of
funds may support undergraduate study, and only 10 percent of
total awarded funds may be used for study abroad.
Section 604. Research and studies
The Secretary may directly or through grants or contracts
conduct research and studies that contribute to achieving the
purposes of this part, including comparative studies, research
on instructional strategies and studies to assess the need for
area studies and language instruction. The Secretary may also
direct evaluations of the diversity of the program and
effective practices.
Section 605. Technological innovation and cooperation for foreign
information access
The Secretary is authorized to make grants to institutions
of higher education, public or non-profit private libraries or
consortia of such institutions or libraries to develop
innovative ways to utilize electronic technologies to collect,
organize, preserve, and widely disseminate information from
foreign sources. Non-profit educational organizations may be
part of a consortium.
Section 606. Selection of certain grant recipients
In consideration of a pending grant application under this
title, the Secretary shall evaluate each application based on
established criteria. The Secretary shall also consider the
applicant's record of sending students into public service.
Section 607. American overseas research centers
The Secretary is authorized to make grants to and enter
into contracts with any American overseas research center that
is a consortium of institutions of higher education. Each
center desiring a grant shall submit the required information
including how the center will reflect diverse and balanced
perspectives and how they will handle policy disputes. Grant
funds may support faculty salaries, faculty and student travel,
teaching and research material, conferences, and publications.
Section 608. Authorization of appropriations for international and
foreign language studies
There is authorized such sums as may be necessary for
fiscal years 2006-11.
Part B--Business and International Education Programs
Section 609. Centers for international business education
The Secretary is authorized to award grants to institutions
of higher education to operate international centers for
business education that will be national resources for improved
business techniques. Such grants will reflect diverse
perspectives and a wide range of views on world regions and
international affairs, when applicable.
Section 610. Education and training programs
The Secretary is authorized to award grants to institutions
of higher education to promote linkages between such
institutions and the American business community engaged in
international business. Such grants will provide diverse
perspectives and a wide range of views on world regions and
international affairs.
Section 611. Authorization and appropriations for business and
international education programs
There is authorized such sums as may be necessary for
fiscal years 2006-11.
Part C--Institute for International Public Policy
Section 612. Minority foreign service professional development program
The Secretary is authorized to award a grant to
Historically Black Colleges or colleges that serve a
substantial number of minority students, or an institution of
higher education with programs in training Foreign Service
professionals to establish an Institute for International
Public Policy to increase the participation of underrepresented
minorities in international service fields. Such programs shall
reflect diverse perspectives and a wide range of views on world
regions and international affairs, when applicable. The
applicant must provide a 50 percent match of Federal funds
although the Secretary has the right to waive that match
requirement.
Section 613. Institutional development
The Institute shall award grants to minority-serving
institutions to strengthen international affairs, international
business, and foreign language study programs.
Section 614. Study abroad program
The Institute shall conduct a junior year abroad program.
Section 615. Advanced degree in international relations
The Institute shall provide a program of study that leads
to master's degree and, in exceptional circumstances, a
doctoral degree.
Section 616. Internships
The Institute shall work with eligible institutions of
higher education to establish relevant internships for students
in the international studies field.
Section 617. Financial assistance
The Institute may provide financial assistance in the form
of summer stipends of up to $3,000 or Ralph Bunche scholarships
of up to $5,000 per academic year.
Section 618. Report
The Institute shall submit a report biennially on the
activities conducted until this title to the Secretary of
Education and the Secretary of State.
Section 619. Gifts and donations
The biennial report shall include all gifts and donations
received by the Institution.
Section 620. Authorization of appropriations for the institute for
international public policy
There is authorized such sums as may be necessary for
fiscal years 2006-11.
Part D--General Provisions
Section 622. Assessment and enforcement
The Secretary is authorized to assess and ensure compliance
with all the conditions and terms of grants provided under this
title.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Part A--Graduate Education Programs
Section 701. Purpose
Section 701 identifies mathematics, science, engineering
and other areas critical to the United States' national and
homeland security needs as areas of focus for national graduate
fellowship programs that are designed to sustain and enhance
the capacity for graduate education.
Section 702. Allocation of Jacob K. Javits fellowships
Section 702 adds two considerations to the qualifications
of Board members appointed by the Secretary. The Secretary will
appoint members to represent the various geographic regions of
the United States and include representatives from minority-
serving institutions, as defined in section 365.
Section 703. Stipends
Section 703 clarifies that stipends provided under this
section are to be of an amount equal to those provided through
the National Science Foundation's ``Graduate Research
Fellowship Program.''
Section 704. Authorization of appropriations for the Jacob K. Javits
fellowship program
There is authorized to be appropriated such sums as may be
necessary for fiscal years 2006-11.
Section 705. Institutional eligibility under the graduate assistance in
areas of national need program
In designating areas of national need, the Secretary is
required to consult with appropriate Federal and nonprofit
agencies and organizations, including the National Science
Foundation, the Department of Defense, the Department of
Homeland Security, the National Academy of Sciences, and the
Bureau of Labor Statistics. The Secretary must also take into
consideration an assessment of current and future professional
workforce needs of the United States, when making these
designations.
Section 706. Awards to graduate students
This section requires that for individuals who receive
their first stipend in academic year 2006-2007, the amount
shall be set at an amount equal to that provided by the
Graduate Research Fellowship Program administered by the
National Science Foundation.
Section 707. Additional assistance for cost of education
The years used in determining payments amounts are updated
from 1999-2000 to 2006-07, and from 1998-99 to 2005-06.
Section 708. Authorization of appropriations for the graduate
assistance in areas of national need program
There is authorized to be appropriated such sums as may be
necessary for fiscal years 2006-11.
Section 709. Authorization of appropriations for the Thurgood Marshall
legal educational opportunity program
There is authorized to be appropriated such sums as may be
necessary for fiscal years 2006-11.
Part B--Fund for the Improvement of Postsecondary Education
Section 710. Fund for the improvement of postsecondary education
The provision regarding institutions and programs based on
the technology of communication is expanded to include the
establishment and continuation of institutions, programs,
consortia, collaborations, and other joint efforts based on the
technology of communications, including efforts that use
distance education and technological advancements to educate
and train postsecondary students, including health
professionals serving medically underserved populations.
The provision regarding the introduction of reforms in
graduate education is expanded to include reforms in remedial
education, including English language instruction, to customize
remedial courses to student goals and help students progress
into core courses and complete programs, the creation of
consortia that join diverse institutions of higher education
for the purpose of integrating curricular and co-curricular
interdisciplinary study, and support and assistance to programs
implementing reforms to improve high school graduation and
college attendance and completion rates for disadvantaged
students.
Section 711. Special projects
Areas of national need are expanded to include improvements
in academic instruction and student learning, including efforts
designed to assess the learning gains made by postsecondary
students. Areas of national need are expanded to include the
development, evaluation, and dissemination of model programs
including model core curricula that provide students with a
broad and integrated knowledge base, include broad survey
courses in English literature, American and world history,
American political institutions, economics, philosophy,
college-level mathematics and natural sciences, and sufficient
study of a foreign language to lead to reading and writing
competency in that language.
Section 712. Authorization of appropriations for the fund for the
improvement of postsecondary education
There is authorized to be appropriated such sums as may be
necessary for fiscal years 2006-11.
Part C--Urban Community Service
Section 713. Authorization of appropriations for the Urban Community
Service Program
Section 713 repeals the Urban Community Service Program.
Part D--Demonstration Projects to Ensure Students With Disabilities
Receive a Quality Higher Education
Section 714. Grants authorized for demonstration projects to ensure
students with disabilities receive a quality higher education
The teaching methods and strategies designed to teach
students with disabilities must now teach and meet the academic
and programmatic needs of students with disabilities in order
to improve retention and completion of postsecondary education.
The authorized activities under these grants are expanded
to include the development of innovative and effective teaching
methods and strategies to ensure the successful transition of
students with disabilities from secondary schools to
postsecondary education.
The authorized activities under these grants are expanded
to include, in synthesizing research and information related to
the provision of postsecondary educational services to students
with disabilities, the use of data on the postsecondary
education of and impact on subsequent employment of students
with disabilities. Such research, information and data will be
made publicly available and accessible.
The authorized activities under these grants are expanded
to include making postsecondary education more accessible to
students with disabilities through: (1) innovative and
effective teaching methods and strategies to provide faculty
and administrators with the ability to provide accessible
distance education programs or classes that would enhance
access to higher education for students with disabilities,
including the use of accessible curriculum and electronic
communication for instruction and advisement; (2) training and
support to secondary and postsecondary staff to encourage
interest in and understanding of educational opportunities in,
teaching skills, and offer work-based opportunities in
disability-related fields, including students with
disabilities. This training and support may include developing
means to offer students credit-bearing, college-level
coursework and career and educational counseling; and (3)
curriculum development.
The Secretary will prepare and disseminate a report
reviewing the demonstration projects and providing guidance and
recommendations on how successful projects can be replicated.
Section 715. Applications for demonstration projects to ensure students
with disabilities receive a quality higher education
Each application will now include a description of how the
applicant plans to address the activities allowed under this
part. Each application will now include a description of the
extent to which the institution will work to replicate the
research and best practices of institutions of higher education
with demonstrated success in serving students with
disabilities.
Section 716. Authorization of appropriations for the demonstration
projects to ensure students with disabilities receive a quality
higher education
There is authorized to be appropriated such sums as may be
necessary for fiscal years 2006-11.
TITLE VIII--MISCELLANEOUS
The purpose of this title is to provide new programs to
offer opportunities for increased success in higher education.
Part A--Mathematics and Science Scholars Program
Section 811. Math and science scholars program
The Secretary is authorized to award grants to States on a
competitive basis to enable a State to award scholarships of up
to $1,000 to students within that State who have completed a
rigorous secondary school curriculum in mathematics or science.
States are required to meet a 50 percent match of the Federal
funds.
The students are eligible for the scholarships for their
first 2 years of college, and governors may set a priority for
awarding these scholarships to attract students who are
underrepresented in mathematics, engineering and science
fields, students in high-need school districts, or students who
attend school districts that do not meet or exceed State
mathematics and science standards or districts in regions in
the State that have particular need.
Part B--Postsecondary Education Assessment
Section 821. Postsecondary education assessment
The Secretary is authorized to enter into a contract with
an independent, bipartisan organization with specific expertise
in public administration to complete an assessment of the cost
factors associated with cost of tuition at institutions of
higher education. The contract will begin not later than 90
days after the date of enactment of the Higher Education
Amendments of 2005. The study shall consider the key elements
that drive cost, identify and evaluate measures being used to
control costs, identify other measures that should be utilized
in the future and identify systemic approaches to monitor
future postsecondary education cost trends and cost control
mechanisms.
Part C--Job Skill Training in High-Growth Occupations or Industries
Section 831. Job skill training in high-growth occupations or
industries
The Secretary is authorized to award competitive grants for
up to 5 years to partnerships of institutions of higher
education and a local Workforce Investment Board to provide
relevant job training in high growth industries or occupations,
including entrepreneurial efforts. The Secretary shall award
grants to eligible partnerships to expand or create academic
programs or programs to train individuals for high-growth
occupations, to purchase equipment or create or expand distance
programs that would facilitate those programs, and to outreach
to students and businesses to promote involvement in such
programs. Priority is given to institutions serving
nontraditional students.
Part D--Grant Program to Increase Student Retention and Promote
Articulation Agreements
Section 841. Grant program to increase student retention and promote
articulation agreements
The Secretary is authorized to award competitive grants to
institutions of higher education to improve the retention and
degree completion of traditional and non-traditional students.
Eligible institutions must have 40 percent of their enrolled
students eligible for Federal financial aid, and must offer
counseling and advisement, mentors, tutoring, and detailed
financial aid counseling to student population identified in
the application. There must also be outreach to current and
prospective students who are eligible and services available to
promote an effective transition from a 2-year to 4-year
institution, or 4-year degree completion. Grantees must provide
counseling and tutoring in native languages when the student
population includes at least five percent of students speaking
a specific language. Grantees may also provide childcare,
transportation and other services that will assist students to
successfully complete degrees.
Part E--American History for Freedom
Section 851. American history for freedom
The Secretary is authorized to award 3-year competitive
grants to eligible institutions of higher education to
establish or strengthen postsecondary academic programs or
centers that promote the teaching of traditional American
history, free institutions and the history and achievements of
Western civilization. Funds may be used to design and implement
programs of study, courses, lecture series, seminars and
symposia; develop, publish and disseminateinstructional
materials; conduct research; conduct teacher preparation initiatives;
and support fellowships. Grantees must increase access to quality
programming that expands knowledge of American History and involve
personnel with strong expertise in traditional American history.
Part F--Teach for America
Section 861. Teach for America
The Secretary is authorized to award a non-competitive
grant to Teach for America to conduct outreach activities to
undergraduate and graduate students to attract them to
participate in the Teach for America program. The program
attracts college graduates to teach for up to 2 years in
underserved schools. Grant funds will be used for recruitment,
pre-service training and professional development during their
first 2 years of teaching under this program. Teach for America
shall submit an annual report and the Secretary shall conduct a
study of the program outcomes.
Part G--Patsy T. Mink Fellowship Program
Section 871. Patsy T. Mink Fellowship Program
The Secretary shall award grants to eligible institutions
of higher education to enable such institutions to make
fellowship awards to assist highly qualified minorities and
women to acquire the highest degree available in academic areas
where such individuals are underrepresented in the
professoriate. The Secretary shall consider the representation
of women and minorities faculty members, the current and
projected need for faculty and the need to prepare professors
in areas of national need such as mathematics and science. In
awarding grants, each institution shall award no less than 15
fellowships. Fellows shall sign an agreement to enter a
contract to teach at an institution of higher education not
later than 3 years after receiving the doctoral degree or
highest possible degree available. Individuals who do not enter
the professoriate shall repay the fellowship.
Part H. Study on College Enrollment By Secondary Schools
Section 881. Study on college enrollment by secondary schools
The Secretary shall contract with a not-for-profit
organization with demonstrated expertise in increasing college
enrollment rates in low-income communities nationwide to make
available year-to-year college enrollment rate trends by
secondary schools.
TITLE IX--AMENDMENTS TO OTHER LAWS
Part A--Education of the Deaf Act
Section 901. Laurent Clerc National Deaf Education Center
This section maintains the funding for quality education
for deaf individuals at the Laurent Clerc Center. The
elementary and secondary programs at the Center shall adopt and
implement standards and assessments pursuant to section 1111(b)
of the Elementary and Secondary Education Act and approved by
the Secretary. Also in accordance with 1111(b) of ESEA, the
University shall determine whether the Clerc programs are
making adequate yearly progress and publicly report the
findings.
Section 902. Agreement with Gallaudet University
This bill continues the agreement with Gallaudet University
and updates the reference to the Davis-Bacon Act.
Section 903. Agreement for the National Technical Institute for the
Deaf
This section names the Rochester Institute of Technology as
a partner institution for this section and specifies that if
the Secretary or Rochester Institute terminates the agreement
the Secretary shall consider other proposals to establish and
operate a National Technical Institution for the Deaf.
Section 904. Cultural experiences grants
This section authorizes the Secretary to award competitive
grants or contracts with eligible entitles to enrich the lives
of deaf and hard-of-hearing children and adults and promote the
integration of hearing, deaf, and hard-of-hearing persons
through shared cultural, educational, and social experiences.
Section 905. Audit
This section requires an annual independent audit for the
National Technical Institute for the Deaf activities.
Section 911. International students
This section allows for the cost-free participation of
international students in distance programs developed at
Gallaudet University. For international students who attend the
University from a non-developing country, there will be a 100
percent surcharge and for those from a developing country the
surcharge will be 50 percent. The University has the right to
reduce those surcharges based on an individual student's need.
Part B--United States Institute of Peace Act
Section 921. United States Institute of Peace Act
This section clarifies that a member of the Board of
Directors for the Institute shall commence their term when
confirmed by the Senate.
TITLE X--RECONCILIATION
Part A--Education Provisions
Section 1001. Provisional Grant Assistance Program (ProGAP)
Section 1001 authorizes and appropriates funds from fiscal
year 2006 to fiscal year 2010 to provide approximately $6.0
billion in additional grant assistance to all Pell-eligible
students (ProGAP) and $2.25 billion in new grant assistance to
Pell-eligible students studying math, science, technology,
engineering or certain foreign languages (described in next
section). The Secretary shall ensure that grants under this
program are awarded to students with the greatest need.
Section 1002. National SMART grants
Section 1002 authorizes use of up to $450 million per year
of funding appropriated in section 1001 for the National
Science and Mathematics Access to Retain Talent (SMART) grant
program. SMART grants of up to $1,500 per student per academic
year shall be awarded to Pell-eligible students in their third
or fourth year at an institution of higher education majoring
in math, science, technology, engineering, or a foreign
language that is critical to the national security of the
United States (as determined by the Secretary in consultation
with the Director of National Intelligence). Institutions of
higher education may match SMART grants or provide additional
assistance with funds from private sources.
Section 1003. Loan limits
Section 1003 increases loan limits to $3,500 and $4,500 for
first and second year students, with no increase in aggregate
undergraduate borrowing limits. The section also increases the
annual graduate unsubsidized borrowing by $2,000 annually, with
a $2,000 increase in aggregate borrowing. The section makes
graduate students eligible for PLUS loans.
Section 1004. PLUS Loan interest rates and zero special allowance
payment
Section 1004 increases the fixed interest rate on PLUS
loans (scheduled to go into effect July 1, 2006) from 7.9
percent to 8.5 percent. This section enacts a floor income for
lenders (i.e., eliminates ``windfall profits'') by requiring
that lenders rebate to the government the difference between
the borrower rate and the lender yield rate when the borrower
rate exceeds the lender yield rate.
Section 1005. Reduction of lender insurance reimbursement rates
Section 1005 reduces reimbursement rate lenders receive on
defaulted loans to 97 percent (from 98 percent for all lenders
and from 100 percent for lenders qualifying as exceptional
performers).
Section 1006. Guaranty agency origination fee
Section 1006 requires guaranty agencies to deposit a one
percent origination fee into the Federal Fund on all loans
guaranteed. (Currently, guaranty agencies are only required to
pay the fee if necessary to keep Federal Fund solvent.)
Section 1007. Deferment of student loans for military service
Section 1007 provides for up to 3-year deferment on payment
of loans made through the FFEL, Direct Loan, or Perkins loan
programs for individuals serving on active duty or performing
qualified National Guard duty during a war, other military
operation or terrorist-related national emergency. This section
applies to loans for which the first disbursement was made on
or after July 1, 2001.
Section 1008. Rehabilitation through consolidation.
Section 1008 requires that guaranty agencies establish
procedures to preclude consolidation lending from being an
excessive proportion of guaranty agency recoveries on defaulted
loans. This section limits the borrower collection costs a
guaranty agency may charge to 18.5 percent on defaulted loans
paid off through consolidation; requires that the guaranty
agency remit to the Secretary a portion of this collection
charge, equal to 8.5 percent of the outstanding principal and
interest of the defaulted loan; and requires that, for each
fiscal year beginning on or after October 1, 2009, if the
proceeds of defaulted loans paid off through consolidation
exceed 45 percent of the agency's total collections on
defaulted loans in that fiscal year, the guaranty agency shall
remit to the Secretary the entire amount charged.
Section 1009. Single holder rule
Section 1009 repeals the single holder rule, allowing
students to consolidate with the lender of their choice.
Section 1010. Default reduction program
Section 1010 changes the requirement regarding payments
which must be received by guaranty agency before selling a
defaulted loan that is rehabilitated from 12 consecutive
payments to 9 payments made within 20 days of the due date
within 10 consecutive months. This section limits collection
costs charged and retained by the guaranty agency to 18.5
percent of proceeds on sale of a defaulted loan that is
rehabilitated.
Section 1011. Requirements for disbursements of student loans
Section 1011 extends the provisions that allow schools with
low default rates to disburse loans in a single installment for
any period of enrollment and have immediate access to title IV
funds.
Section 1012. Special insurance and reinsurance rules
Section 1012 repeals the ``exceptional performer''
designation for lenders, servicers and guaranty agencies.
Section 1013. School as lender moratorium
Section 1013 allows only those schools that have previously
made loans to do so in the future and adds requirements that
school must hold the loans they make until the borrower enters
a grace period and use the proceeds from loan sales for need-
based grant aid that supplements and does not supplant other
Federal, State, and institutional grant aid. This section
specifies that such institutions shall not be foundations or
alumni organizations.
Section 1014. Permanent reduction of special allowance payments for
loans from the proceeds of tax exempt issues
Section 1014 makes permanent the provisions of Taxpayer-
Teacher Protection Act of 2004 (TTPA) relating to loans
receiving special allowance payments of 9.5 percent. (Remaining
expiring provisions of TTPA, relating to loan forgiveness for
teachers, made permanent by section 1020.)
Section 1015. Loan fees from lenders
Section 1015 increases the lender origination fee on new
consolidation loans from 0.5 percent to 1.0 percent.
Section 1016. Origination fee
Section 1016 strikes the requirement that Secretary shall
charge all borrowers a 4 percent origination fee. Instead, this
section authorizes Secretary to charge student borrowers a fee
between 1 percent and 3 percent and requires that the Secretary
shall charge the borrower of a Federal Direct PLUS loan 4
percent. The section also reduces origination fees by one-half
percent beginning July 1, 2007.
Section 1017. Income contingent repayment for public sector employees
Section 1017 provides that the Secretary shall forgive the
balance of a Federal Direct Loan for any individual who has
made 120 payments pursuant to income contingent repayment and
who is employed, and was employed during the 10-year period
during which the 120payments were made, in a full-time job in
emergency management, government, public safety, law enforcement,
public health, education (including early childhood education), or
public interest legal services (including prosecution or public
defense). This section provides that a borrower who is repaying a loan
pursuant to income contingent repayment may choose, at any time, to
return to payment under the standard repayment plan.
Section 1018. Family contribution for dependent students
Section 1018 increases the income protection allowance for
dependent students to $3,000 and decreases the asset conversion
rate for dependent students from 35 percent to 20 percent.
Section 1019. Family contribution for independent students without
dependents other than a spouse
Section 1019 increases the income protection allowance by
varying amounts for single and married students and decreases
the asset conversion rate from 35 percent to 20 percent.
Section 1020. Family contribution for independent students with
dependents other than a spouse
Section 1020 decreases the asset conversion rate from 12
percent to 7 percent.
Section 1021. Simplified need test and automatic zero improvements
Section 1021 increases the income level at which the
Secretary automatically considers an applicant to have expected
family contribution of zero to $20,000.
Section 1022. Loan forgiveness for teachers
Section 1022 makes permanent the provisions in the
Taxpayer-Teacher Protection Act of 2004 relating to loan
forgiveness for math, science and special education teachers,
providing up to $17,500 of loan forgiveness for eligible
borrowers.
Part B--Hurricane Katrina Higher Education Recovery
Section 1051. Short title
This part may be cited as the Hurricane Katrina Higher
Education Recovery Act.
Section 1052. Definitions
Section 1052 defines affected borrowers as individuals who
were in repayment, but not in deferment, on August 22, or who
entered repayment after August 22, 2005 and before June 30,
2006, who lived in a county or parish of Alabama, Louisiana or
Mississippi in which a major disaster was declared. The section
defines an affected institution as an institution located in an
area declared a major disaster area due to Hurricane Katrina.
The section also defines an affected student as a student
enrolled on August 29, 2005 in an affected institution.
Identifies technologies used in distance education.
Section 1053. Waiver authority and modifications to certain provisions
of the Higher Education Act of 1965
Section 1053 waives the requirement that students and
institutions return a portion of Federal student financial aid
funds received when students withdraw before completing at
least 60 percent of their period of enrollment or payment
period for students and institutions affected by Hurricane
Katrina. Stafford loans, PLUS loans and Perkins Loans
disbursements to affected students are cancelled. The section
provides for students who do not enroll in another institution
and borrowers in repayment to be retained in in-school or grace
period status, respectively until June 30, 2006. The section
also authorizes the Secretary to modify Teacher Quality
Enhancement, TRIO, GEAR UP, title III and other grants upon the
request of an affected institution or other grantee located in
an area affected by Hurricane Katrina.
Section 1054. General waiver authority and required consultation
Section 1054 provides general authority to the Secretary of
Education to waive or modify statutory any provision of the
Higher Education Act the Secretary deems necessary to address
due to the effects of Hurricane Katrina, after consulting with
the authorizing committees.
Section 1055. Notice of waivers, modifications, or extensions
Section 1055 requires the Secretary to make the waivers,
modifications or extensions granted publicly available.
Section 1056. Regulatory requirements inapplicable
Section 1056 specifies that certain provision under the
General Education Provisions Act do not apply.
Sec. 1057. Department of Education Inspector General audit and report
Section 1057 requires the Department of Education Inspector
General to conduct an audit and investigation of each program
carried out that includes response and recovery activities
related to Hurricane Katrina and requires a weekly listing of
audits and investigations to be provided to authorizing
committees.
Sec. 1058. Sunset provision
The provisions related to Hurricane Katrina recovery expire
September 30, 2006.
IX. Changes in Existing Law
In compliance with rule XXVI paragraph 12 of the Standing
Rules of the Senate, the following provides a print of the
statute or the part or section thereof to be amended or
replaced (existing law proposed to be omitted is enclosed in
black brackets, new matter is printed in italic, existing law
in which no change is proposed is shown in roman):
HIGHER EDUCATION ACT OF 1965
* * * * * * *
PART I--GENERAL HIGHER EDUCATION PROGRAMS
Higher Education Act of 1965
(P.L. 89-329)
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this
Act may be cited as the ``Higher Education Act of 1965''.
TITLE I--GENERAL PROVISIONS
PART A--DEFINITIONS
SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
(a) Institution of Higher Education.--For purposes of this
Act, other than title IV, the term ``institution of higher
education'' means an educational institution in any State
that--
(1) * * *
* * * * * * *
(3) provides an educational program for which the
institution awards a bachelor's degree or provides not
less than a 2-year program that is acceptable for full
credit toward such a degree or awards a degree that is
acceptable for admission to a graduate or professional
degree program, subject to the review and approval by
the Secretary.
* * * * * * *
(b) Additional Institutions Included.--For purposes of this
Act, other than title IV, the term ``institution of higher
education'' also includes--
(1) * * *
[(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 persons who are beyond the age of compulsory
school attendance in the State in which the institution
is located.]
(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 persons--
(A) who meet the requirements of section
484(d)(3);
(B) who are beyond the age of compulsory
school attendance in the State in which the
institution is located; or
(C) who are dually or concurrently enrolled
in such institution and a secondary school.
* * * * * * *
SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES OF
TITLE IV PROGRAMS.
(a) Definition of Institution of Higher Education for
Purposes of Title IV Programs.--
(1) Inclusion of additional institutions.-- * * *
* * * * * * *
(2) Institutions outside the united states.--
(A) In general.-- * * *
[(i) in the case of a graduate
medical school located outside the
United States--
[(I)(aa) at least 60 percent
of those enrolled in, and at
least 60 percent of the
graduates of, the graduate
medical school outside the
United States were not persons
described in section 484(a)(5)
in the year preceding the year
for which a student is seeking
a loan under part B of title
IV; and
[(bb) at least 60 percent of
the individuals who were
students or graduates of the
graduate medical school outside
the United States or Canada
(both nationals of the United
States and others) taking the
examinations administered by
the Educational Commission for
Foreign Medical Graduates
received a passing score in the
year preceding the year for
which a student is seeking a
loan under part B of title IV;
or
[(II) the institution has
clinical training program that
was approved by a State as of
January 1, 1992; or]
(i) in the case of a graduate medical
school located outside the United
States--
(I) at least 60 percent of
those enrolled in, and at least
60 percent of the graduates of,
the graduate medical school
outside the United States were
no persons described in section
484(a)(5) in the year preceding
the year for which a student is
seeking a loan under part B of
title IV; and
(II) at least 60 percent of
the individuals who were
students or graduates of the
graduate medical school outside
the United States or Canada
(both nationals of the United
States and others) taking the
examinations administered by
the Educational Commission for
Foreign Medical Graduates
received a passing score in the
year preceding the year of
which a student is seeking a
loan under part B of title IV;
or
* * * * * * *
[(3) Limitations based on course of study or
enrollment.--An institution shall not be considered to
meet the definition of an institution of higher
education in paragraph (1) if such institution--
[(A) offers more than 50 percent of such
institution's courses by correspondence, unless
the institution is an institution that meets
the definition in section 521(4)(C) of the Carl
D. Perkins Vocational and Applied Technology
Education Act;
[(B) enrolls 50 percent or more of the
institution's students in correspondence
courses, unless the institution is an
institution that meets the definition in such
section, except that the Secretary, at the
request of such institution, may waive the
applicability of this subparagraph to such
institution for good cause, as determined by
the Secretary in the case of an institution of
higher education that provides a 2- or 4-year
program of instruction (or both) for which the
institution awards an associate or
baccalaureate degree, respectively;
[(C) has a student enrollment in which more
than 25 percent of the students are
incarcerated, except that the Secretary may
waive the limitation contained in this
subparagraph for a nonprofit institution that
provides a 2- or 4-year program of instruction
(or both) for which the institution awards a
bachelor's degree, or an associate's degree or
a postsecondary diploma, respectively; or
[(D) has a student enrollment in which more
than 50 percent of the students do not have a
secondary school diploma or its recognized
equivalent, and does not provide a 2- or 4-year
program of instruction (or both) for which the
institution awards a bachelor's degree or an
associate's degree, respectively, except that
the Secretary may waive the limitation
contained in this subparagraph if a nonprofit
institution demonstrates to the satisfaction of
the Secretary that the institution exceeds such
limitation because the institution serves,
through contracts with Federal, State, or local
government agencies, significant numbers of
students who do not have a secondary school
diploma or its recognized equivalent.]
(3) Limitations based on enrollment.--An institution
shall not be considered to meet the definition of an
institution of higher education in paragraph (1) if
such institution--
(A) has a student enrollment in which more
than 25 percent of the students are
incarcerated, except that the Secretary may
waive the limitation contained in this
subparagraph for a nonprofit institution that
provides a 2- or 4-year program of instruction
(or both) for which the institution awards a
bachelor's degree, or an associate's degree or
a postsecondary diploma, respectively; or
(B) has a student enrollment in which more
than 50 percent of the students do not have a
secondary school diploma or its recognized
equivalent, and does not provide a 2- or 4-year
program of instruction (or both) for which the
institution awards a bachelor's degree or an
associate's degree, respectively, except that
the Secretary may waive the limitation
contained in this subparagraph if a nonprofit
institution demonstrates to the satisfaction of
the Secretary that the institution exceeds such
limitation because the institution serves,
through contracts with Federal, State, or local
government agencies, significant numbers of
students who do not have a secondary school
diploma or its recognized equivalent.
(4) limitations based on mode of delivery.--
(A) In general.--An institution shall not be
considered to meet the definition of an
institution of higher education in paragraph
(1) if such institution--
(i) offers more than 50 percent of
such institution's courses by
correspondence, unless the institution
is an institution that meets the
definition in section 3(3)(C) of the
Carl D. Perkins Vocational and
Technical Education Act of 1998; or
(ii) enrolls 50 percent or more of
the institution's students in
correspondence courses, unless the
institution is an institution that
meets the definition in such section
3(3)(C), except that the Secretary, at
the request of such institution, may
waive the applicability of this
subparagraph to such institution for
good cause, as determined by the
Secretary in the case of an institution
of higher education that provides a 2-
or 4-year program of instruction (or
both) for which the institution awards
an associate or baccalaureate degree,
respectively.
(B) Distance education program eligibility.--
Notwithstanding subparagraph (A), an
institution of higher education, other than a
foreign institution, that offers education or
training programs principally through distance
education shall be considered to meet the
definition of an institution of higher
education in paragraph (1) if such
institution--
(i) has been evaluated and determined
(before or after the date of enactment
of the Higher Education Amendments of
2005) to have the capability to
effectively deliver distance education
programs by an accrediting agency or
association that--
(I) is recognized by the
Secretary under title IV; and
(II) has evaluation of
distance education programs
within the scope of its
recognition, as described in
section 496(n)(3);
(ii) is otherwise eligible to
participate in programs authorized
under title IV;
(iii) has not had its participation
in programs under title IV suspended or
terminated within the previous 5 years;
(iv) has not had, or failed to
resolve, an audit finding or program
review finding under this Act during
the 2 years preceding the year for
which the determination is made that,
following any appeal to the Secretary,
resulted in the institution being
required to repay an amount that is
equal to or greater than 25 percent of
the total funds the institution
received under the programs authorized
under title IV for the most recent
award year; and
(v) has met the requirements of
section 487(d), if applicable.
(C) Definition.--
(i) In general.--In this Act, except
as otherwise provided, the term
``distance education'' means a course
or program that uses 1 or more of the
technologies described in clause (ii)
to--
(I) deliver instruction to
students who are separated from
the instructor; and
(II) support regular and
substantive interaction between
the students and the
instructor, either
synchronously or
asynchronously.
(ii) Inclusions.--For the purposes of
clause (i), 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 cassette, DVDs,
and CD-ROMs, provided that they
are used in a course in
conjunction with the
technologies listed in
subclauses (I) through (III).
[(4)] (5) Limitations based on management.-- * * *
* * * * * * *
[(5)] (6) Certification.--The Secretary shall certify
an institution's qualification as an institution of
higher education in accordance with the requirements of
subpart 3 of part H of title IV.
[(6)] (7) Loss of eligibility.--An institution of
higher education shall not be considered to meet the
definition of an institution of higher education in
paragraph (1) if such institution is removed from
eligibility for funds under title IV as a result of an
action pursuant to part H of title IV.
(b) Proprietary Institution of Higher Education.--
(1) Principal criteria.--For the purpose of this
section, the term ``proprietary institution of higher
education'' means a school that--
(A) * * *
* * * * * * *
(D) is accredited by a nationally recognized
accrediting agency or association recognized by
the Secretary pursuant to part H of title IV;
and
(E) has been in existence for at least 2
years [; and].
[(F) has at least 10 percent of the school's
revenues from sources that are not derived from
funds provided under title IV, as determined in
accordance with regulations prescribed by the
Secretary.
[(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 paragraph (1) of section
101(a), admits as regular students persons who are
beyond the age of compulsory school attendance in the
State in which the institution is located.]
* * * * * * *
SEC. 103. ADDITIONAL DEFINITIONS.
In this Act:
(1) Authorizing Committees.--The term ``authorizing
committees'' means the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on
Education and the Workforce of the House of
Representatives.
[(1)](2) Combination of institutions of higher
education.-- * * *
[(2)](3) Department.-- * * *
[(3)](4) Disability.-- * * *
[(4)](5) Elementary school.-- * * *
[(5)](6) Gifted and talented.-- * * *
[(6)](7) Local educational agency.-- * * *
[(7)](8) New borrower.-- * * *
[(8)](9) Nonprofit.-- * * *
[(9)](10) School or department or divinity.-- * * *
* * * * * * *
[(10)](11) Secondary school.-- * * *
[(11)](12) Secretary.-- * * *
[(12)](13) Service-learning.-- * * *
[(13)](14) Special education teacher.-- * * *
[(14)](15) State educational agency.-- * * *
[(15)](16) State higher education agency.-- * * *
[(16)](17) State; freely associated states.-- * * *
* * * * * * *
SEC. 112. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.
(a) Protection of Rights.--(1) It is the sense of Congress
that no student attending an institution of higher education on
a full- or part-time basis should, on the basis of
participation in protected speech or protected association, be
excluded from participation in, be denied the benefits of, or
be subjected to discrimination or official sanction under any
education program, activity, or division of the institution
directly or indirectly receiving financial assistance under
this Act, whether or not such program, activity, or division is
sponsored or officially sanctioned by the institution.
(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 colleges and universities have
different missions and each institution should
design its academic program in accordance with
its educational goals;
(C) within the context of institutional
mission, a college should facilitate the free
and open exchange of ideas;
(D) students should not be intimated,
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.
(b) Construction.--Nothing in this section shall be
construed--
(1) to discourage the imposition of an official
sanction on a student that has willfully participated
in the disruption or attempted disruption of a lecture,
class, speech, presentation, or performance made or
scheduled to be made under the auspices of the
institution of higher education, provided that the
imposition of such sanction is done objectively and
fairly; or
* * * * * * *
SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
(a) Establishment.-- * * *
* * * * * * *
(g) Termination.--The Committee shall cease to exist on
[September 30, 2004] September 30, 2011.
* * * * * * *
SEC. 120. DRUG AND ALCOHOL ABUSE PREVENTION.
(e) Restriction on Eligibility.--* * *
* * * * * * *
[(e) Alcohol and Drug Abuse Prevention Grants.--
[(1) Program Authority.--The Secretary may make
grants to institutions of higher education or consortia
of such institutions, and enter into contracts with
such institutions, consortia, and other organizations,
to develop, implement, operate, improve, and
disseminate programs of prevention, and education
(including treatment-referral) to reduce and eliminate
the illegal use of drugs and alcohol and the violence
associated with such use. Such grants or contracts may
also be used for the support of a higher education
center for alcohol and drug abuse prevention that will
provide training, technical assistance, evaluation,
dissemination, and associated services and assistance
to the higher education community as determined by the
Secretary and institutions of high education.
[(2) Awards.--Grants and contracts shall be awarded
under paragraph (1) on a competitive basis.
[(3) Applications.--An institution of higher
education, a consortium of such institutions, or
another organization that desires to receive a grant or
contract under paragraph (1) 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 by
regulation.
[(4) Additional requirements.--
[(A) Participation.--In awarding grants and
contracts under this subsection the Secretary
shall make every effort to ensure--
[(i) the equitable participation of
private and public institutions of
higher education (including community
and junior colleges); and
[(ii) the equitable geographic
participation of such institutions.
[(B) Consideration.--In awarding grants and contracts
under this subsection the Secretary shall give
appropriate consideration to institutions of higher
education with limited enrollment.
[(5) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection $5,000,000 for fiscal year 1999 and such
sums as may be necessary for each of the 4 succeeding
fiscal years.]
[(f) National Recognition Awards.--
[(1) Purpose.--It is the purpose of this subsection
to provide models of innovative and effective alcohol
and drug abuse prevention programs in higher education
and to focus national attention on exemplary alcohol
and drug abuse prevention efforts.
[(2) Awards.--
[(A) In general.--The Secretary shall make 5
National Recognition Awards for outstanding
alcohol prevention programs and 5 National
Recognition Awards for outstanding drug abuse
prevention programs, on an annual basis, to
institutions of higher education that--
[(i) have developed and implemented
innovative and effective alcohol
prevention programs or drug abuse
prevention programs; and
[(ii) with respect to an application
for an alcohol prevention program
award, demonstrate in the application
submitted under paragraph (3) that the
institution has undertaken efforts
designed to change the culture of
college drinking consistent with the
review criteria described in paragraph
(3)(C)(iii).
[(B) Ceremony.--The awards shall be made at a
ceremony in Washington, D.C.
[(C) Document.--The Secretary shall publish a
document describing the alcohol and drug abuse
prevention programs of institutions of higher
education that receive the awards under this
subsection and disseminate the document
nationally to all public and private secondary
school guidance counselors for use by secondary
school juniors and seniors preparing to enter
an institution of high education. The document
shall be disseminated not later than January 1
of each academic year.
[(D) Amount and use.--Each institution of
higher education selected to receive an award
under this subsection shall receive in award in
the amount of $50,000. Such award shall be used
for the maintenance and improvement of the
institution's outstanding prevention program
for the academic year following the academic
year for which the award is made.
[(3) Application.--
[(A) In general.--Each institution of higher
education desiring an award under this
subsection 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--
[(i) a clear description of the goals
and objectives of the prevention
program of the institution;
[(ii) a description of program
activities that focus on alcohol or
drug policy issues, policy development,
modification, or refinement, policy
dissemination and implementation, and
policy enforcement;
[(iii) a description of activities
that encourage student and employee
participation and involvement in
activity development and
implementation;
[(iv) the objective criteria used to
determine the effectiveness of the
methods used in such programs and the
means used to evaluate and improve the
programs' efforts;
[(v) a description of special
initiatives used to reduce high-risk
behavior or increase low-risk behavior;
and
[(vi) a description of coordination
and networking efforts that exist in
the community in which the institution
is located for purposes of such
programs.
[(B) Application review.--The Secretary shall
appoint a committee to review applications
submitted under this paragraph. The committee
may include representatives of Federal
departments or agencies the programs of which
include alcohol abuse prevention and education
efforts and drug abuse prevention and education
efforts, directors or heads (or their
representatives) of progressional associations
that focus on alcohol and drug abuse prevention
efforts,and non-Federal scientists who have
backgrounds in social science evaluation and research methodology and
in education. Decisions of the committee shall be made directly to the
Secretary without review by any other entity in the Department.
[(C) Review criteria.--The committee
described in subparagraph (B) shall develop
specific review criteria for reviewing and
evaluating applications submitted under this
paragraph. The view criteria shall include--
[(i) measures of the effectiveness of
the program of the institution, that
includes changes in the campus alcohol
or other drug environment or the
climate and changes in alcohol or other
drug use before and after the
initiation of the program;
[(ii) measures of program
institutionalization, including--
[(I) an assessment of needs
of the institution;
[(II) the institution's
alcohol and drug policies,
staff and faculty development
activities, drug prevention
criteria, student, faculty, and
campus community involvement;
and
[(III) whether the program
will be continued after the
cessation of Federal funding;
and
[(iii) with respect to an application
for an alcohol prevention program
award, criteria for determining whether
the institution has policies in effect
that--
[(I) prohibit alcoholic
beverage sponsorship of
athletic events, and prohibit
alcoholic beverage advertising
inside athletic facilities;
[(II) prohibit alcoholic
beverage marketing on campus,
which may include efforts to
ban alcohol advertising in
institutional publications or
efforts to prohibit alcohol-
related advertisements at
campus events;
[(III) establish or expand
upon alcohol-free living
arrangements for all college
students;
[(IV) establish partnerships
with community members and
organizations to further
alcohol prevention efforts on
campus and the areas
surrounding campus; and
[(V) establish innovative
communications programs
involving students and faculty
in an effort to educate
students about alcohol-related
risks.
[(4) Eligibility.--In order to be eligible to receive
a National Recognition Award an institution of higher
education shall--
[(A) offer an associate or baccalaureate
degree;
[(B) have established an alcohol abuse
prevention and education program or a drug
abuse prevention and education program;
[(C) nominate itself or be nominated by
others, such as professional associations or
student organizations, to receive the award;
and
[(D) not have received an award under this
subsection during the 5 academic years
preceding the academic year for which the
determination is made.
[(5) Authorization of appropriations.--
[(A) In general.--There is authorized to be
appropriated to carry out this subsection
$750,000 for fiscal year 1999.
[(B) Availability.--Funds appropriated under
subparagraph (A) shall remain available until
expended.]
(e) Grants Directed at Reducing Higher Education Drug and
Alcohol Abuse.--
(1) Authorization of program.--The Secretary may
award grants to eligible entities to enable the
entities to reduce the rate of drug use, underage
alcohol use, and binge drinking among students at
institutions of higher education.
(2) Applications.--An eligible entity that desires to
receive a grant under this subsection shall submit an
application to the Secretary at such time, in such
manner, and accompanied by such information as the
Secretary may require. Each application shall include--
(A) a description of how the eligible entity
will work to enhance an existing, or where none
exists to build a, statewide coalition;
(B) a description of how the eligible entity
will target underage students in the State;
(C) a description of how the eligible entity
intends to ensure that the statewide coalition
is actually implementing the purpose described
in paragraph (1) and moving toward the
achievement indicators described in paragraph
(4);
(D) a list of the members of the statewide
coalition or interested parties involved in the
work of the eligibility entity;
(E) a description of how the eligible entity
intends to work with State agencies on
substance abuse prevention and education;
(F) the anticipated impact of funds provided
under this subsection in reducing the rates of
drug abuse and underage alcohol use;
(G) outreach strategies, including ways in
which the eligible entity proposes to--
(i) reach out to students;
(ii) promote the purpose described in
paragraph (1);
(iii) address the range of needs of
the students and the surrounding
communities; and
(iv) address community norms for
underage students regarding drug and
alcohol use; and
(H) such additional information as required
by the Secretary.
(3) Uses of funds.--Each eligible entity that
receives a grant under this subsection shall use the
grant funds to carry out the activities described in
such entity's application submitted pursuant to
paragraph (2).
(4) Accountability.--On the date on which the
Secretary first publishes a notice in the Federal
Register soliciting applications for grants under this
subsection, the Secretary shall include in the notice
achievement indicators for the program authorized under
this subsection. The achievement indicators shall be
designed--
(A) to measure the impact that the statewide
coalitions assisted under this subsection are
having on the institutions of higher education
and the surrounding communities, including
changes in the number of alcohol and drug-
related abuse incidents of any kind (including
violations, physical assaults, sexual assaults,
reports of intimidation, disruptions of school
functions, disruptions of student studies,
mental health referrals, illnesses, or deaths);
(B) to measure the quality and accessibility
of the programs or information offered by the
statewide coalitions; and
(C) to provide such other measures of program
impact as the Secretary determines appropriate.
(5) Supplement not supplant.--Grant funds provided
under this subsection shall be used to supplement, and
not supplant, Federal and non-Federal funds available
for carrying out the activities described in this
subsection.
(6) Definitions.--In this subsection:
(A) Eligible entity.--The term ``eligible
entity'' means a State, an institution of
higher education as defined in section 102, or
a non-profit entity.
(B) Institution of higher education.--The
term ``institution of higher education'' has
the meaning given the term in section 101(a).
(C) State.--The term ``State'' means each of
the 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico.
(D) Statewide coalition.--The term
``statewide coalition'' means a coalition
that--
(i) includes--
(I) institutions of higher
education within a State; and
(II) a nonprofit group, a
community anti-drug or underage
drinking prevention coalition,
or another substance abuse
prevention group within a
State; and
(ii) works toward lowering alcohol
abuse rates by targeting underage
students at institutions of higher
education throughout the State and in
the surrounding communities.
(E) Surrounding community.--The term
``surrounding community'' means the community--
(i) that surrounds an institution of
higher education participating in a
statewide coalition;
(ii) where the students from the
institution of higher education take
part in the community; and
(iii) where students from the
institution of higher education live in
off-campus housing.
(7) Administrative expenses.--Not more than 5
percent of a grant awarded under this
subsection may be expended for administrative
expenses.
(8) Authorization of appropriations.--There
are authorized to be appropriated to carry out
this subsection such sums as may be necessary
for fiscal year 2006 and each of the 5
succeeding fiscal years.
* * * * * * *
SEC. 121. PRIOR RIGHTS AND OBLIGATIONS.
(A) AUTHORIZATION OF APPROPRIATIONS--
(1)Pre-1987 parts c and d of title vii.--There are
authorized to be appropriated such sums as may be
necessary for fiscal year [1999] 2006 and for each of
the 4 succeeding fiscal years to pay obligations
incurred prior to 1967 under parts C and D of title
VII, as such parts were in effect before the effective
date of the Higher Education Amendments of 1992.
(2) Post-1992 and pre-1996 part c of title vii.--
There are authorized to be appropriated such sums as
may be necessary for fiscal year [1999] 2006 and for
each of the 4 succeeding fiscal years to pay
obligations incurred prior to the date of enactment of
the Higher Education Amendments of 1998 under part C of
title VII, as such part was in effect during the
period--
(A) after the effective date of the Higher
Education Amendments of 1992; and
(B) prior to the date of enactment of the
Higher Education Amendments of 1998.
* * * * * * *
PART C--COST OF HIGHER EDUCATION
SEC. 131. IMPROVEMENTS IN MARKET INFORMATION AND PUBLIC ACCOUNTABILITY
IN HIGHER EDUCATION.
(a) Improved Data Collection.--
(1) Development of uniform methodologist.-- * * *
* * * * * * *
(3) Information to institutions.--The Commissioner of
Education Statistics shall--
(A) develop a standard definition for the
following data elements:
(i) * * *
* * * * * * *
(B) not later than 90 days after the date of
enactment of the Higher Education Amendments of
1998, report the definitions to each
institution of higher education and within a
reasonable period of time thereafter inform the
[Committee on Labor and Human Resources of the
Senate and the Committee on Education and the
Workforce of the House of Representatives]
authorizing committees of those definitions;
and
* * * * * * *
[(b) Data Dissemination.--The Secretary shall make
available the data collected pursuant to subsection (a). Such
data shall be available in a form that permits the review and
comparison of the data submissions of individual institutions
of higher education. Such data shall be presented in a form
that is easily understandable and allows parents and students
to make informed decisions based on the costs for typical full-
time undergraduate students.]
(b) College Consumer Information.--
(1) In general.--The Secretary shall make available
to the public the information described in paragraph
(2), in a form that enables the public to compare the
information among institutions of higher education.
Such information shall be made available for each of
the categories described in paragraph (3) and updated
annually.
(2) Information.--The information described in this
paragraph is the following:
(A) Tuition and fees for a first-time, full-
time undergraduate student.
(B) Cost of attendance for a first-time,
full-time undergraduate student.
(C) The average annual cost of attendance for
a first-time, full-time undergraduate student
for the preceding periods of 5 and 10 academic
years preceding the year for which the
information is made available under this
subsection, or if data are not available for
such academic years, data for as many of such
academic years as are available.
(D) The percentage of full-time undergraduate
students receiving financial assistance,
including--
(i) Federal grants;
(ii) State and local grants;
(iii) institutional grants; and
(iv) loans to students.
(E) The average amount of financial aid
received by students from sources described in
clause (i) through (iv) of subparagraph (D).
(F) Graduation rates, as described in section
485(a)(1)(L).
(G) A ranking of the dollar and percentage
increases in tuition and fees for all
institutions of higher education for which data
are available in each of the categories
described in paragraph (3).
(3) Categories.--The categories described in this
paragraph are as follows:
(A) All institutions of higher education.
(B) 4-year public, degree-granting,
institutions of higher education.
(C) 2-year public, degree-granting,
institutions of higher education.
(D) 4-year, nonprofit, private, degree-
granting institutions of higher education.
(E) 2-year, nonprofit, private, degree-
granting institutions of higher education.
(F) 4-year, for profit, private, degree-
granting institutions of higher education.
(G) 2-year, for profit, private, degree-
granting institutions of higher education.
(H) Less than 2-year, for-profit, private
institutions of higher education.
(4) Standard definitions.--In carrying out this
section, the Secretary shall use the standard
definitions developed under subsection (a)(3).
(c) Study.--
(1) In general.--The Commissioner of Education
Statistics shall conduct a national study of
expenditures at institutions of higher education. Such
study shall be conducted on an annual basis and include
information with respect to--
* * * * * * *
(2) Evaluation.--The study shall include an
evaluation of--
(A) * * *
(B) the relationship of the expenditures
identified in paragraph (1) to college costs;
[and]
(C) the extent to which increases in
institutional financial aid and tuition
discounting practices affect tuition increases,
including the demographics of students
receiving such discounts, the extent to which
financial aid is provided to students with
limited need in order to attract a student to a
particular institution, and the extent to which
Federal financial aid, including loan aid, has
been used to offset the costs of such
practices[.];
(D) the average cost of attending an
institution of higher education, disaggregated
by category, as described in subsection (b)(3);
(E) the average annual cost of attending an
institution of higher education for the periods
of 5 and 10 academic years preceding the year
for which the study is conducted (or if data
are not available for such academic years, data
for as many of such academic years as are
available), disaggregated by category, as
described in subsection (b)(3); and
(F) the assistance provided to institutions
of higher education by each State.
(3) [Final] Annual Report.--The Commissioner of
Education Statistics shall submit [a report] an annual
report regarding the findings of the study required by
paragraph (1) to the appropriate committees of Congress
[not later than September 30, 2002] and the public.
[(4) Higher education market basket.--The Bureau of
Labor Statistics, in consultation with the Commissioner
of Education Statistics, shall develop a higher
education market basket that identifies the items that
comprise the costs of higher education. The Bureau of
Labor Statistics shall provide a report on the market
basket to the Committee on Labor and Human Resources of
the Senate and the Committee on Education and the
Workforce of the House of Representatives not later
than September 30, 2002.]
(4) Higher education cost index.--The Bureau of Labor
Statistics, in consultation with the Commissioner of
Education Statistics, shall develop a higher education
cost index that tracks inflation changes in the
relevant costs associated with higher education.
* * * * * * *
PART D--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
SEC. 141. PERFORMANCE-BASED ORGANIZATIONS FOR THE DELIVERY OF FEDERAL
STUDENT FINANCIAL ASSISTANCE.
(a) Establishment and Purpose.--
(1) Establishment.--There is established in the
Department a Performance-Based Organization (hereafter
referred to as the ``PBO'') which shall be a discrete
management unit responsible for managing the
[operational] administrative and oversight functions
supporting the program authorized under title IV of
this Act, as specified in subsection (b).
(2) Purposes.--The purposes of the PBO are--
(A) to improve service to students and other
participants in the student financial
assistance programs authorized under title IV,
including making those programs more
understandable to students and their parents;
(B) * * *
(C) * * *
(D) to provide greater flexibility in the
management [of the operational functions] and
adminstration of the Federal students financial
assistance programs;
* * * * * * *
(b) General Authority.--
(1) Authority of secretary.--* * *
(A) request the advice of, and work in
cooperation with, the Chief Operating Officer
in developing regulations, policies,
administrative guidance, or procedures
affecting [the information systems administered
by the PBO, and other functions performed by
the PBO] the Federal student financial
assistance programs authorized under title IV;
(B) * * *
[(C) assist the Chief Operating Officer in
identifying goals for the administration and
modernization of the delivery system for
student financial assistance under title IV.]
(C) assist the Chief Operating Officer in
identifying goals for--
(i) the administration of the systems
used to administered the Federal
student financial assistance programs
authorized under title IV; and
(ii) the updating of such systems to
current technology.
(2) PBO functions.--Subject to paragraph (1), the PBO
shall be responsible for [administration of the
information and financial systems that support] the
administration of Federal student financial assistance
programs authorized under this title, excluding the
development of policy relating to such programs but
including the following:
(A) The administrative, accounting and
financial management functions [of the delivery
system for Federal student assistance] for the
Federal student assistance programs authorized
under title IV, including--
[(i) the collection, processing and
transmission of applicant data to
students, institutions and authorized
third parties, as provided for in
section 483;
[(ii) design and technical
specifications for software development
and systems supporting the delivery of
student financial assistance under
title IV:]
(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 student financial assistance
programs authorized under title IV;
(iii) all software and hardware
acquisitions and all information
technology contracts related to the
[delivery] administration and
management of student financial
assistance under title IV;
(iv) all aspects of contracting for
the information and financial systems
supporting the student financial
assistance programs under this title;
[and]
(v) providing all customer service,
training, and user support related to
[systems that support those programs.]
the administration of the Federal
student assistance programs authorized
under title IV; and
(vi) ensuring the integrity of the
student assistance programs authorized
under title IV.
(B) Annual development of a budget for the
[operations and services] activities and
functions of the PBO, in consultation with the
Secretary, and for consideration and inclusion
in the Department's annual budget submission.
* * * * * * *
(c) Performance Plan and Report.--
(1) Performance plan
(A) In general.-- * * *
(B) * * *
(C) * * *
(i) * * *
(ii) * * *
(iii) Improvement and integration of
support systems.--Improving and
integrating the [information and
delivery] systems that support those
programs.
(iv) Delivery and information
system.--[Developing an] Developing
open, common, and integrated [delivery
and information system] systems for
programs authorized under this title.
(v) * * *
(2) Annual report.-- * * *
(A) An independent financial audit of the
expenditures of both the PBO and the programs
administered by the PBO.
(B) Financial and performance requirements
applicable to the PBO under the Chief Financial
[Officer] Officers Act of 1990 and the
Government Performance and Results Act of 1993.
* * * * * * *
(3) Consultation with stakeholders.--The Chief
Operating Officer, in preparing the report described in
paragraph (2), shall establish appropriate means to
consult with students, borrowers, institutions,
lenders, guaranty agencies, secondary markets, and
others involved in the delivery system of student aid
under this title--
* * * * * * *
(d) Chief Operating Officer.--
(1) Appointment.--The management of the PBO shall be
vested in a Chief Operating Officer who shall be
appointed by the Secretary to a term of not less than 3
and not more than 5 years, and compensated without
regard to chapters 33, 51, and 53 of title 5, United
States Code. [The Secretary shall appoint the Chief
Operating Officer within 6 months after the date of
enactment of the Higher Education Amendments of 1998.]
The appointment shall be made on the basis of
demonstrated management ability and expertise in
information technology, including experience with
financial systems, and without regard to political
affiliation or activity.
* * * * * * *
(4) Performance agreement.--
(A) In general.-- * * *
(B) Transmittal.--The final agreement, and
any revision to the final agreement, shall be
transmitted to the [Committee on Education and
the Workforce of the House of Representatives
and the Committee on Labor and Human Resources
of the Senate] authorizing committees, and made
publicly available.
(5) Compensation.--
(A) In general.-- * * *
(B) Bonus.--In addition, the Chief Operating
Officer may receive a bonus in an amount that
does not exceed 50 percent of such annual rate
of basic pay, based upon the Secretary's
evaluation of the Chief Operating Officer's
performance in relation to the goals set forth
in the performance agreement described in
[paragraph (2)] paragraph (4).
(C) Payment.--Payment of a bonus under [this]
subparagraph (B) may be made to the Chief
Operating Officer only to the extent that such
payment does not cause the Chief Operating
Officer's total aggregate compensation in a
calendar year to equal or exceed the amount of
the President's salary under section 102 of
title 3, United States Code.
(e) Senior Management.--
* * * * * * *
(f) Student Loan Ombudsman.--
(1) Appointment.-- * * *
(2) Public information.--The Chief Operating Officer
shall disseminate information about the availability
and functions of the Ombudsman [to borrowers] to
students, borrowers, and potential borrowers, as well
as institutions of higher education, lenders, guaranty
agencies, loan servicers, and other participants in
those student loan programs.
(3) Functions of ombudsman.--The Ombudsman shall--
(A) in accordance with regulations of the
Secretary, receive, review, and attempt to
resolve informally complaints from borrowers of
loans described in paragraph (1), including, as
appropriate, attempts to resolve such
complaints within the Department of Education
and with institutions of higher education,
lenders, guaranty agencies, loan servicers, and
other participants in the loan programs
described in paragraph [(1)(A)] (1); and
* * * * * * *
(g) Personnel Flexibility.--
(1) Personnel ceilings.-- * * *
(2) * * *
(3) Excepted service.--The Chief Operating Officer
may appoint, without regard to the provisions of title
5, United States Code, governing appointments in the
competitive service, [not more than 25] technical and
professional employees to administer the functions of
the PBO. These employees may be paid without regard to
the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and
General Schedule pay rates.
(h) Establishment of a Fair and Equitable System for
Measuring Staff Performance.--The PBO shall establish an annual
performance management system, subject to compliance with title
5, United States Code and consistent with applicable provisions
of law and regulations, which strengthens the [organizational
effectiveness] effectiveness of the PBO by providing for
establishing goals or objectives for individual, group, or
organizational performance (or any combination thereof),
consistent with the performance plan of the PBO and its
performance planning procedures, including those established
under the Government Performance and Results Act of 1993, and
communicating such goals or objectives to employees.
[(i) Report.--The Secretary and the Chief Operating
Officer, not later than 180 days after the date of enactment of
the Higher Education Amendments of 1998, shall report to
Congress on the proposed budget and sources of funding for the
operation of the PBO.]
[(j)](i) Authorization of Appropriations.--The Secretary
shall allocate from funds made available under section 458 such
funds as are appropriate to the functions assumed by the PBO.
In addition, there are authorized to be appropriated such sums
as may be necessary to carry out the purposes of this part[,
including transition costs].
* * * * * * *
SEC. 142. PROCUREMENT FLEXIBILITY.
(a) Procurement Authority.-- * * *
(b) In General.--Except as provided in this section, the
PBO shall abide by all applicable Federal procurement laws and
regulations when procuring property and services. The PBO
shall--
(1) enter into contracts [for information systems
supporting the programs authorized under title IV] to
carry out the functions set forth in section 141(b)(2);
[and]
(2) obtain the services of experts and consultants
without regard to section 3109 of title 5, United
States Code and set pay in accordance with such
section[.]; and
(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.
(c) Service Contracts.--
(1) Performance-based servicing contracts.-- * * *
[(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 title IV delivery system from
my entity that has the capability and capacity to meet
the requirements for the system. The Chief Operating
Officer is authorized to pay fees that are equivalent
to those paid by other entities to an organization that
provides an information system or service that meets
the requirements of the PBO, as determined by the Chief
Operating Officer.]
(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.
(d) Two-Phase Source-Selection Procedures.--
(1) In general.--The PBO may use a two-phase process
for selecting a source for a procurement of property or
services.
(2) First phase.--The procedures for the first phase
of the process for a procurement are as follows:
(A) Publication of notice.-- * * *
* * * * * * *
(B) Information submitted by offerors.--Each
offeror for the procurement shall submit basic
information, such as the procurement shall
submit basic information, such as information
on the offeror's qualifications, the proposed
conceptual approach, costs likely to be
associated with the proposed conceptual
approach, and past performance of the offeror
[on Federal Government contracts], together
with any additional information that is
requested by the contracting officer.
* * * * * * *
(e) Use of Simplified Procedures for Commercial Items.--* *
*
* * * * * * *
(f) Flexible Wait Periods and Deadlines for Submission of
Offers of Noncommercial Items.--
* * * * * * *
(g) Modular Contracting.--
(1) In general.-- * * *
(4) Procedures.-- * * *
(A) [Sole source.--]Single-source basis._
Award of the contract on a [sole-source]
single-source module previously procured for
the system under competitive procedures or
procedures authorized under subparagraph (B).
* * * * * * *
(7) Simplified source-selection procedures.--The PBO
may award a contract under any other simplified
procedures prescribed by the PBO for the selection of
sources for the procurement of modules for a system,
after the first module, that are not to be procured
under a contract awarded on a [sole-source] single-
source basis.
(h) Use of Simplified Procedures for Small Business Set-
Asides for Services Other Than Commercial Items.--
(1) Authority.-- * * *
* * * * * * *
(2) Inapplicability to certain procurements.--The
authority set forth in paragraph (1) may not be used
for--
(A) an award of a contract on a [sole-source]
single-source basis; or
* * * * * * *
(i) Guidance for Use of Authority.-- * * *
* * * * * * *
(l) Definitions.--In this section:
(1) Commercial item.-- * * *
* * * * * * *
[(3) Sole-source basis.--The term ``sole-source'',
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 that
source.]
(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.
* * * * * * *
TITLE II--TEACHER QUALITY ENHANCEMENT
PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND PARTNERSHIPS
[SEC. 201. [20 U.S.C. 1021] PURPOSES; DEFINITIONS.
[(a) Purposes.--The purposes of this part are to--
[(1) improve student achievement;
[(2) improve the quality of the current and future
teaching force by improving the preparation of
prospective teachers and enhancing professional
development activities;
[(3) hold institutions of higher education
accountable for preparing teachers who have the
necessary teaching skills and are highly competent in
the academic content areas in which the teachers plan
to teach, such as mathematics, science, English,
foreign languages, history, economics, art, civics,
government, and geography, including training in the
effective uses of technology in the classroom; and
[(4) recruit highly qualified individuals, including
individuals from other occupations, into the teaching
force.
[(b) Definitions.--In this part;
[(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 1 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 matter area, the disciplines or content
areas in which academic majors are offered by
the arts and science organizational unit.
[(2) High need local educational agency.--The term
``high need local educational agency'' means a local
educational agency that serves an elementary school or
secondary school located in an area in which there is--
[(A) a high percentage of individuals from
families with incomes below the poverty line;
[(B) a high percentage of secondary school
teachers not teaching in the content area in
which the teachers were trained to teach; or
[(C) a high teacher turnover rate.
[(3) Poverty line.--The term ``poverty line'' means
the poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
[SEC. 202. [U.S.C. 1022] STATE GRANTS.
[(a) In general.--From amounts made available under section
210(1) for a fiscal year, the Secretary is authorized to award
grants under this section, on a competitive basis, to eligible
States to enable the eligible States to carry out the
activities described in subsection (d).
[(b) Eligible State.--
[(1) Definition.--In this part, the term ``eligible
State'' means--
[(A) the Governor of a State; or
[(B) in the case of a State for which the
constitution or law of such State designates
another individual, entity, or agency in the
State to be responsible for teacher
certification and preparation activity, such
individual, entity, or agency.
[(2) Consultation.--The Governor and the individual,
entity, or agency designated under paragraph (1) shall
consult with the Governor, State board of education,
State educational agency, or State agency for higher
education, as appropriate, with respect to the
activities assisted under this section.
[(3) Construction.--Nothing in this subsection shall
be construed to negate or supersede the legal authority
under State law of any State agency, State entity, or
State public official over programs that are under the
jurisdiction of the agency, entity, or official.
[(c) Application.--To be eligible to receive a grant
under this section, an eligible State shall, at the time of the
initial grant application, submit an application to the
Secretary that--
[(1) meets the requirement of this section;
[(2) includes a description of how the eligible State
intends to use funds provided under this section; and
[(3) contains such other information and assurances
as the Secretary may require.
[(d) Uses of Funds.--An eligible State that receives a
grant under this section shall use the grant funds to reform
teacher preparation requirements, and to ensure that current
and future teachers possess the necessary teaching skills and
academic content knowledge in the subject areas in which the
teachers are assigned to teach, by carrying out 1 or more of
the following activities:
[(1) Reforms.--Implementing reforms that hold
institutions of higher education with teacher
preparation programs accountable for preparing teachers
who are highly competent in the academic content areas
in which the teachers plan to teach, and possess strong
teaching skills, which may include the use of rigorous
subject matter competency tests and the requirement
that a teacher have an academic major in the subject
area, or related discipline, in which the teacher plans
to teach.
[(2) Certification or licensure requirements.--
Reforming teacher certification or licensure
requirements to ensure that teachers have the necessary
teaching skills and academic content knowledge in the
subject areas in which teachers are assigned to teach.
[(3) Alternatives to traditional preparation for
teaching.--Providing prospective teachers with
alternatives to traditional preparation for teaching
through programs at colleges of arts and sciences or at
nonprofit educational organizations.
[(4) Alternative routes to state certification.--
Carrying out programs that--
[(A) include support during the initial
teaching experience; and
[(B) establish, expand, or improve
alternative routes to State certification of
teachers for highly qualified individuals,
including mid-career professionals from other
occupations, paraprofessionals, former military
personnel and recent college graduates with
records of academic distinction.
[(5) Recruitment; pay; removal.--Developing and
implementing effective mechanisms to ensure that local
educational agencies and schools are able to
effectively recruit highly qualified teachers, to
financially reward those teachers and principals whose
students have made significant progress toward high
academic performance, such as through performance-based
compensation systems and access to ongoing professional
development opportunities for teachers and
administrators, and to expeditiously remove incompetent
or unqualified teachers consistent with procedures to
ensure due process for the teachers.
[(6) Social promotion.--Development and
implementation of efforts to address the problem of
social promotion and to prepare teachers to effectively
address the issues raised by ending the practice of
social promotion.
[(7) Recruitment.--Activities described in section
204(d).
[SEC. 203. [20 U.S.C. 1023] PARTNERSHIP GRANTS.
[(a) Grants.--From amounts made available under section
210(2) for a fiscal year, the Secretary is authorized to award
grants under this section, on a competitive basis, to eligible
partnerships to enable the eligible partnerships to carry out
the activities described in subsections (d) and (e).
[(b) Definitions.--
[(1) Eligiblee partnerships.--In this part, the term
``eligible partnerships'' means an entity that--
[(A) shall include--
[(i) a partner institution;
[(ii) a school of arts and sciences;
and
[(iii) a high need local educational
agency; and
[(B) may include a Governor, State
educational agency, the State board of
education, the State agency for higher
education, an institution of higher education
not described in subparagraph (A), a public
charter school, a public or private elementary
school or secondary school, a public or private
nonprofit educational organization, a business,
a teacher organization, or a prekindergarten
program.
[(2) Partner institution.--In this section, the term
``partner institution'' means a private independent or
State-supported public institution of higher education,
the teacher training program of which demonstrates
that--
[(A) graduates from the teacher training
program 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 or areas
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
207(b); and
[(II) using the State report
card on teacher preparation
required under section 207(b),
after the first publication of
such report card and for every
year thereafter; or
[(B) the teacher training program requires
all the students of the program to participate
in intensive clinical experience, to meet high
academic standards, and--
[(i) in the case of secondary school
candidates, to successfully complete an
academic major in the subject area in
which the candidate intends to teach or
to demonstrate competence through a
high level of performance in relevant
content areas; and
[(ii) in the case of elementary
school candidates, to successfully
complete an academic major in the arts
and sciences or to demonstrate
competence through a high level of
performance in core academic subject
areas.
[(c) 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--
[(1) contain a needs assessment of all the partners
with respect, to teaching and learning and a
description of how the partnership will coordinate with
other teacher training or professional development
programs, and how the activities of the partnership
will be consistent with State, local, and other
education reform activities that promote student
achievement;
[(2) contain a resource assessment that describes the
resources available to the partnership, the intended
use of the grant funds, including a description of how
the grant funds will be fairly distributed in
accordance with subsection (f), and the commitment of
the resources of the partnership to the activities
assisted under this part, including financial support,
faculty participation, time commitments, and
continuation of the activities when the grant ends; and
[(3) contain a description of--
[(A) how the partnership will meet the
purposes of this part;
[(B) how the partnership will carry out the
activities required under subsection (d) and
any permissible activities under subsection
(e); and
[(C) the partnership's evaluation plan
pursuant to section 206(b).
[(d) Required Uses of Funds.--An eligible partnership that
receives a grant under this section shall use the grant funds
to carry out the following activities:
[(1) Reforms.--Implementing reforms within teacher
preparation programs to hold the programs accountable
for preparing teachers who are highly competent in the
academic content areas in which the teachers plan to
teach, and for promoting strong teaching skills,
including working with a school of arts and sciences
and integrating reliable research-based teaching
methods into the curriculum, which curriculum shall
include programs designed to successfully integrate
technology into teaching and learning.
[(2) Clinical experience and interaction.--Providing
sustained and high quality preservice clinical
experience including the mentoring of prospective
teachers by veteran teachers, and 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) Professional development.--Creating
opportunities for enhanced and ongoing professional
development that improves the academic content
knowledge of teachers in the subject areas in which the
teachers are certified to teach or in which the
teachers are working toward certification to teach, and
that promotes strong teaching skills.
[(e) Allowable Uses of Funds.--An eligible partnership that
receives a grant under this section may use such funds to carry
out the following activities:
[(1) Teacher preparation and parent involvement.--
Preparing teachers to work with diverse student
populations, including individuals with disabilities
and limited English proficient individuals, and
involving parents in the teacher preparation program
reform process.
[(2) Dissemination and coordination.--Broadly
disseminating information on effective practices used
by the partnership, and coordinating with the
activities of the Governor, State board of education,
State higher education agency, and State educational
agency, as appropriate.
[(3) Managerial and leadership skills.--Developing
and implementing proven mechanisms to provide
principals and superintendents with effective
managerial and leadership skills that result in
increased student achievement.
[(4) Teacher recruitment.--Activities described in
section 204(d).
[(f) Special Rule.--No individual member of an eligible
partnership shall retain more than 50 percent of the funds made
available to the partnership under this section.
[(g) Construction.--Nothing in this section shall be
construed to prohibit an eligible partnership from using grant
funds to coordinate with the activities of more than one
Governor, State board of education, State educational agency,
local educational agency, or State agency for higher education.
SEC. 204. [20 U.S.C. 1024] TEACHER RECRUITMENT GRANTS.
[(a) Program Authorized.--From amounts made available under
section 210(3) for a fiscal year, the Secretary is authorized
to award grants, on a competitive basis, to eligible applicants
to enable the eligible applicants to carry out activities
described in subsection (d).
[(b) Eligible Applicant Defined.--In this part, the term
``eligible applicant'' means--
[(1) an eligible State described in section 202(b);
or
[(2) an eligible partnership described in section
203(b).
[(c) Application.--Any eligible applicant desiring to
receive a grant under this section shall submit an application
to the Secretary at such time, in such form, and containing
such information as the Secretary may require, including--
[(1) a description of the assessment that the
eligible applicant, and the other entities with whom
the eligible applicant will carry out the grant
activities, have undertaken to determine the most
critical needs of the participating high-need local
educational agencies;
[(2) a description of the activities the eligible
applicant will carry out with the grant; and
[(3) a description of the eligible applicant's plan
for continuing the activities carried out with the
grant, once Federal funding ceases.
[(d) Uses of Funds.--Each eligible applicant receiving a
grant under this section shall use the grant funds--
[((1)(A) to award scholarships to help students pay
the costs of tuition, room, board, and other expenses
of completing a teacher preparation program;
[(B) to provide support services, if needed to enable
scholarship recipients to complete postsecondary
education programs; and
[(C) for followup services provided to former
scholarship recipients during the recipients first 3
years of teaching; or
[(2) to develop and implement effective mechanisms to
ensure that high need local educational agencies and
schools are able to effectively recruit highly
qualified teachers.
[(e) Service Requirements.--The Secretary shall establish
such requirements as the Secretary finds necessary to ensure
that recipients of scholarships under this section who complete
teacher education programs subsequently teach in a high-need
local educational agency, for a period of time equivalent to
the period for which the recipients receive scholarship
assistance, or repay the amount of the scholarship. The
Secretary shall sue any such repayments to carry out additional
activities under this section.
[SEC. 205. [20 U.S.C. 1025] ADMINISTRATIVE PROVISIONS.
[(a) Duration; One-Time Awards; Payments.--
[(1) Duration.--
(A) Eligible states and eligible
applicants.-- Grants awarded to eligible States
and eligible applicantsunder this part shall be
awarded for a period not to exceed 3 years.
[(B) Eligible partnerships.--Grants awarded
to eligible partnerships under this part shall
be awarded for a period of 5 years.
[(2) One-time award.--An eligible State and an
eligible partnership may receive a grant under each of
sections 202, 203, and 204 only once.
[(3) Payments.--The Secretary shall make annual
payments of grant funds awarded under this part.
(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
applications, the peer review panel shall initially
recommend the application for funding or for
disapproval.
[(2) Priority.--In recommending applications to the
Secretary for funding under this part, the panel
shall--
[(A) with respect to grants under section
202, give priority to eligible States serving
States that--
[(i) have initiatives to reform State
teacher certification requirements that
are designed to ensure that current and
future teachers possess the necessary
teaching skills and academic content
knowledge in the subject areas in which
the teachers are certified or licensed
to teach;
[(ii) include innovative reforms to
hold institutions of higher education
with teacher preparation programs
accountable for preparing teachers who
are highly competent in the academic
content area in which the teachers plan
to teach and have strong teaching
skills; or
[(iii) involve the development of
innovative efforts aimed at reducing
the shortage of highly qualified
teachers in high poverty urban and
rural areas;
[(B) with respect to grants under section
203--
[(i) give priority to applications
from eligible partnerships that involve
businesses; and
[(ii) take into consideration--
[(I) providing an equitable
geographic distribution of the
grants throughout the United
States; and
[(II) the potential of the
proposed activities for
creating improvement and
positive change.
[(3) Secretarial selection.--The Secretary shall
determine, based on the peer review process, which
application 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.
(c) Matching Requirements.--
[(1) State grants.--Each eligible State receiving a
grant under section 202 or 204 shall provide, from non-
Federal sources, an amount equal to 50 percent of the
amount of the grant (in cash or in kind) to carry out
the activities supported by the grant.
[(2) Partnership grants.--Each eligible partnership
receiving a grant under section 203 or 204 shall
provide, from non-Federal sources (in cash or in kind),
an amount equal to 25 percent of the grant for the
first year of the grant, 35 percent of the grant for
the second year of the grant, and 50 percent of the
grant for each succeeding year of the grant.
(d) Limitation on Administrative Expenses.--An eligible
State or eligible partnership that receives a grant under this
part may not use more than 2 percent of the grant funds for
purposes of administering the grant.
(e) Teacher Qualifications Provided to Parents Upon
Request.--Any local educational agency or school that benefits
from the activities assisted under this part shall make
available, upon request and in an understandable and uniform
format, to any parent of a student attending any school served
by the local educational agency, information regarding the
qualification of the student's classroom teacher with regard to
the subject matter in which the teacher provides instruction.
The local educational agency shall inform parents that the
parents are entitled to receive the information upon request.
SEC. 2056 [20 U.S.C. 1026] ACCOUNTABILITY AND EVALUATION.
(a) State Grant Accountability Report.--An eligible State
that receives a grant under section 202 shall submit an annual
accountability report to the Secretary, the Committee on Labor
and Human Resources of the Senate, and the Committee on
Education and the Workforce of the House of Representatives.
Such report shall include a description of the degree to which
the eligible state, in using funds provided under such section,
has made substantial progress in meeting the following goals:
[(1) Student achievement.--Increasing student
achievement for all students as defined by the eligible
State.
[(2) Raising standards.--Raising the State academic
standards required to enter the teaching profession,
including, where appropriate, through the use of
incentives to incorporate the requirement of an
academic major in the subject, or related discipline,
in which the teacher plans to teach.
[(3) Initial certification or licensure.--Increasing
success in the pass rate for initial State teacher
certification or licensure, or increasing the numbers
of highly qualified individuals being certified or
licensed as teachers through alternative programs.
[(4) Core academic subjects.--
[(A) Secondary school classes.--Increasing
the percentage of secondary school classes
taught in core academic subject areas by
teachers--
[(i) with academic majors in those
areas or in a related field;
[(ii) who can demonstrate a high
level of competence through rigorous
academic subject area tests; or
[(iii) who can demonstrate,
competence through a high level of
performance in relevant content areas.
[(B) Elementary school classes.--Increasing
the percentage of elementary school classes
taught by teachers--
[(i) with academic majors in the arts
and sciences; or
[(ii) who can demonstrate competence
through a high level of performance in
core academic subjects.
[(5) Decreasing teacher shortages.--Decreasing
shortages of qualified teachers in poor urban and rural
areas.
[(6) Increasing opportunities for professional
development.--Increasing opportunities for enhanced and
ongoing professional development that improves the
academic content knowledge of teachers in the subject
areas in which the teachers are certified or licensed
to teach or in which the teachers are working toward
certification or licensure to teach, and that promotes
strong teaching skills.
[(7) Technology integration.--Increasing the number
of teachers prepared to integrate technology in the
classroom.
[(b) Eligible Partnership Evaluation.--Each eligible
partnership receiving a grant under section 203 shall establish
and include in the application submitted under section 203(c),
an evaluation plan that includes strong performance objectives.
The plan shall include objectives and measures for--
[(1) increased student achievement for all students
as measured by the partnership;
[(2) increased teacher retention in the first 3 years
of a teacher's career;
[(3) increased success in the pass rate for initial
State certification or licensure of teachers; and
[(4) increased percentage of secondary school classes
taught in core academic subject areas by teachers--
[(A) with academic majors in the areas or in
a related field; and
[(B) who can demonstrate a high level of
competence through rigorous academic subject
area tests or who can demonstrate competence
through a high level of performance in relevant
content areas;
[(5) increasing the percentage of elementary school
classes taught by teachers with academic majors in the
arts and sciences or who demonstrate competence through
a high level of performance in core academic subject
areas; and
[(6) increasing the number of teachers trained in
technology.
[(c) Revocation of Grant.--
[(1) Report.--Each eligible State or eligible
partnership receiving a grant under this part shall
report annually on the progress of the eligible State
or eligible partnership toward meeting the purposes of
this part and the goals, objectives, and measures
described in subsections (a) and (b).
[(2) Revocation.--
(A) Eligible states and eligible
applicants.--If the Secretary determines that
an eligible State or eligible applicant is not
making substantial progress in meeting the
purposes, goals, objectives, and measures, as
appropriate, by the end of the second year of a
grant under this part, then the grant payment
shall not be made for the third year of the
grant.
[(B) Eligible partnerships.--If the Secretary
determines that an eligible partnership is not
making substantial progress in meeting the
purposes, goals, objectives, and measures, as
appropriate, by the end of the third year of a
grant under this part, then the grant payments
shall not be made for any succeeding year of
the grant.
[(d) Evaluation and Dissemination.--The Secretary shall
evaluate the activities funded under this part and report the
Secretary's findings regarding the activities to the Committee
on Labor and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives.
The Secretary shall broadly disseminate successful practices
developed by eligible States and eligible partnerships under
this part, and shall broadly disseminate information regarding
such practices that were found to be ineffective.
[SEC. 207. [20 U.S.C. 1027] ACCOUNTABILITY FOR PROGRAMS THAT PREPARE
TEACHERS.
[(a) Development of Definitions and Reporting Methods.--
Within 9 months of the date of enactment of the Higher
Education Amendments of 1998, the Commissioner of the National
Center for Education Statistics, in consultation with States
and institutions of higher education, shall develop key
definitions for terms, and uniform reporting methods (including
the key definitions for the consistent reporting of pass
rates), related to the performance of elementary school and
secondary school teacher preparation programs.
[(b) State Report Card on the Quality of Teacher
Preparation.--Each State that receives funds under this Act
shall provide to the Secretary, within 2 years of the date of
enactment of the Higher Education Amendments of 1998, and
annually thereafter, in a uniform and comprehensible manner
that conforms with the definitions and methods established in
subsection (a), a State report card on the quality of teacher
preparation in the State, which shall include at least the
following:
[(1) A description of the teacher certification and
licensure assessments, and any other certification and
licensure requirements, used by the state.
[(2) The standards and criteria that prospective
teachers must meet in order to attain initial teacher
certification or licensure and to be certified or
licensed to teach particular subjects or in particular
grades within the State.
[(3) A description of the extent to which the
assessments and requirements described in paragraph (1)
are aligned with the State's standards and assessments
for students.
[(4) The percentage of teaching candidates who passed
each of the assessments used by the State for teacher
certification and licensure, and the passing score on
each assessment that determines whether a candidate has
passed that assessment.
[(5) The percentage of teaching candidates who passed
each of the assessments used by the State for teacher
certification and licensure, disaggregated and ranked,
by the teacher preparation program in that State from
which the teacher candidate received the candidate's
most recent degree, which shall be made available
widely and publicly.
[(6) Information on the extent to which teachers in
the State are given waivers of State certification or
licensure requirements, including the proportion of
such teachers distributed across high- and low-poverty
school districts and across subject areas.
[(7) A description of each State's alternative routes
to teacher certification, if any, and of the percentage
of teachers certified through alternative certification
routes who pass State teacher certification or
licensure assessments.
[(8) For each State, a description of proposed
criteria for assessing the performance of teacher
preparation programs within institutions of higher
education in the State, including indicators of teacher
candidate knowledge and skills.
[(9) Information on the extent to which teachers or
prospective teachers in the each State are required to
take examinations or other assessments of their subject
matter knowledge in the area or areas in which the
teachers provide instruction, the standards established
for passing any such assessments, and the extent to
which teachers or prospective teachers are required to
receive a passing score on such assessments in order to
teach in specific subject areas or grade levels.
[(c) Initial Report.--
[(1) In general.--Each State that receives funds
under this Act, not later than 6 months of the date of
enactment of the Higher Education Amendments of 1998
and in a uniform and comprehensible manner, shall
submit to the Secretary the information described in
paragraphs (1), (5), and (6) of subsection (b). Such
information shall be compiled by the Secretary and
submitted to the [Committee on Labor and Human
Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives]
authorizing committees not later than 9 months after
the date of enactment of the Higher Education
Amendments of 1998.
[(2) Construction.--Nothing in this subsection shall
be construed to require a State to gather information
that is not in the possession of the State or the
teacher preparation programs in the State, or readily
available to the State or teacher preparation programs.
[(d) Report of the Secretary of the Quality of Teacher
Preparation.--
[(1) Report card.--The Secretary shall provide to
Congress, and publish and make widely available, a
report card on teacher qualifications and preparation
in the United States, including all the information
reported in paragraphs (1) through (9) of subsection
(b). Such report shall identify States for which
eligible States and eligible partnerships received a
grant under this part. Such report shall be so
provided, published and made available not later than 2
years 6 months after the date of enactment of the
Higher Education Amendments of 1998 and annually
thereafter.
[(2) Report to congress.--The Secretary shall report
to Congress--
[(A) a comparison of States' efforts to
improve teaching quality; and
[(B) regarding the national mean and median
scores on any standardized test that is used in
more than 1 State for teacher certification or
licensure.
[(3) Special rule.--In the case of teacher
preparation programs with fewer than 10 graduates
taking any single initial teacher certification or
licensure assessment during an academic year, the
Secretary shall collect and publish information with
respect to an average pass rate on State certification
or licensure assessments taken over a 3-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.
[(f) Institutional Report Cards on the Quality of Teacher
Preparation.--
[(1) Report card.--Each institution of higher
education that conducts a teacher preparation program
that enrolls students receiving Federal assistance
under this Act, not later than 18 months after the date
of enactment of the Higher Education Amendments of 1998
and annually thereafter, shall report to the State and
the general public, in a uniform and comprehensible
manner that conforms with the definitions and methods
established under subsection (a), the following
information:
[ (A) Pass rate.--(i) For the most recent
year for which the information is available,
the pass rate of the institution's graduates on
the teacher certification or licensure
assessments of the State in which the
institution is located, but only for those
students who took those assessments within 3
years of completing the program.
[ (ii) A comparison of the program's pass
rate with the average pass rate for programs in
the State.
[ (iii) In the case of teacher preparation
programs with fewer than 10 graduates taking
any single initial teacher certification or
licensure assessment during an academic year,
the institution shall collect and publish
information with respect to an average pass
rate on State certification or licensure
assessments taken over a 3-year period.
[ (B) Program information.--The number of
students in the program, the average number of
hours of supervised practice teaching required
for those in the program, and the faculty-
student ratio in supervised practice teaching.
[ (C) Statement.--In States that approve or
accredit teacher education programs, a
statement of whether the institution's program
is so approved or accredited.
[(D) Designation as low-performing.--Whether
the program has been designated as low-
performing by the State under section 208(a).
[(2) Requirement.--The information described in
paragraph (1) shall be reported through publications
such as school catalogs and promotional materials sent
to potential applicants, secondary school guidance
counselors, and prospective employers of the
institution's program graduates.
[(3) Fines--In addition to the actions authorized in
section 487(c), the Secretary may impose a fine not to
exceed $25,000 on an institution of higher education
for failure to provide the information described in
this subsection in a timely or accurate manner.
[SEC. 208. [20 U.S.C. 1028] STATE FUNCTIONS.
[(a) Statement Assessment.--In order to receive funds under
this Act, a State, not later than 2 years after the date of
enactment of the Higher Education Amendments of 1998, shall
have in place a procedure to identify, and assist, through the
provision of technical assistance, low-performing programs of
teacher preparation within institutions of higher education.
Such State shall provide the Secretary an annual list of such
low-performing institutions that includes an identification of
those institutions at-risk of being placed on such list. Such
levels of performance shall be determined solely by the State
and may include criteria based upon information collected
pursuant to this part. Such assessment shall be described in
the report under section 207(b).
[(b) Termination of Eligibility.--Any institution of
higher education that offers a program of teacher preparation
in which the State has withdrawn the State's approval or
terminated the State's financial support due to the low
performance of the institution's teacher preparation 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 of Education; and
[(2) shall not be permitted to accept to enroll any
student that receives aid under title IV of this Act in
the institution's teacher preparation program.
[(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.
[SEC. 209 [20 U.S. 1029] GENERAL PROVISIONS.
[(a) Methods.--In complying with sections 207 and 208,
the Secretary shall ensure that States and institutions of
higher education use fair and equitable methods in reporting
and that the reporting methods protect the privacy of
individuals.
[(b) Special Rule.--For each State in which there are no
State certification or licensure assessments, or for States
that do not set minimum performance levels on those assessments
[(1) the Secretary shall, 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, the Secretary shall use such data to carry out
requirements of this part related to assessments or
pass rates.
[(c) Limitations.--
[(1) Federal control prohibited.--Nothing in this
part 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 be construed
to prohibit private, religious, or home schools from
participation in programs or services under this part.
[(2) No change in state control encouraged or
required.--Nothing in this part 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.
[(3) National system of teacher certification
prohibited.--Nothing in this part shall be construed to
permit, allow, encourage, or authorize the Secretary to
establish or support any national system of teacher
certification.]
PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND PARTNERSHIPS
SEC. 201. PURPOSES; DEFINITIONS.
(a) Purposes.--The purposes of this part are to--
(1) improve student achievement;
(2) improve the quality of the current and future
teaching force by improving the preparation of
prospective teachers and enhancing professional
development activities;
(3) hold institutions of higher education accountable
for preparing highly qualified teachers; and
(4) recruit qualified individuals, including
minorities and individuals from other occupations, into
the teaching force.
(b) Definitions.--In this part:
(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 1 or more academic
majors in disciplines or content areas
corresponding to the academic subject 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 as
described in section 1124(c)(1)(A) of the Elementary
and Secondary Education Act of 1965.
(3) Early childhood education program.--The term
``early childhood education program'' means a Head
Start program or an Early Head Start program carried
out under the Head Start Act (42 U.S.C. 9831 et seq.),
a State licensed or regulated child care program or
school, or a State prekindergarten program that serves
children from birth through kindergarten and that
addresses the children's cognitive (including language,
earlyliteracy, and pre-numeracy), social, emotional,
and physical development.
(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
such term in section 9101 of the Elementary and
Secondary Education Act of 1965.
(6) Exemplary teacher.--The term ``exemplary
teacher'' has the meaning given such term in section
9101 of the Elementary and Secondary Education Act of
1965.
(7) High-need local educational agency.--The term
``high-need local educational agency'' means a local
educational agency or educational service agency--
(A)(i) that serves not fewer than 10,000
children from low-income families;
(ii) for which not less than 20 percent of
the children served by the agency are children
from low-income families; or
(iii) with a total of less than 600 students
in average daily attendance at the schools that
are served by the agency and all of whose
schools are designated with a school locale
code of 7 or 8, as determined by the Secretary;
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.
(8) 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.
(9) Professional development.--The term
``professional development'' has the meaning given such
term in section 9101 of the Elementary and Secondary
Education Act of 1965.
(10) 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.
(11) Scientifically based research.--The term
``scientifically based research'' has the meaning given
such term in section 9101 of the Elementary and
Secondary Education Act of 1965.
(12) Teacher mentoring.--The term ``teacher
mentoring'' means mentoring of teachers through an
established or implemented program--
(A) that includes qualifications for mentors;
(B) that provides training for mentors;
(C) that provides regular and ongoing
opportunities for mentors and mentees to
observe each other's teaching methods in
classroom settings during the school day;
(D) in which the mentoring is provided by a
colleague who teaches in the same field, grade,
or subject as the mentee; and
(E) that includes--
(i) common planning time or regularly
scheduled collaboration with teachers
in the teachers' same field, grade, or
subject area; and
(ii) additional professional
development opportunities.
(13) Teaching skills.--The term ``teaching skills''
means the ability to--
(A) increase student achievement;
(B) effectively convey and explain academic
subject matter;
(C) employ strategies that--
(i) are based on scientifically based
research;
(ii) are specific to academic subject
matter; and
(iii) focus on identification and
tailoring of academic instruction to
students' specific learning needs,
particularly students with
disabilities, students who are limited
English proficient, and students who
are gifted and talented;
(D) conduct ongoing assessment of student
learning;
(E) effectively manage a classroom;
(F) communicate and work with parents and
guardians, and involve parents and guardians in
their children's education; and
(G) in the case of an early childhood
educator, use age appropriate strategies and
practices for children in early childhood
education programs.
SEC. 202. STATE GRANTS.
(a) In General.--From amounts made available under section
209(a)(1) for a fiscal year, the Secretary is authorized to
award grants under this section, on a competitive basis, to
eligible States to enable the eligible States to carry out the
activities described in subsections (d) and (e).
(b) Eligible State.--
(1) Definition.--In this part, the term ``eligible
State'' means--
(A) the Governor of a State; or
(B) in the case of a State for which the
constitution or law of such State designates
another individual, entity, or agency in the
State to be responsible for teacher
certification or licensure and preparation
activity, such individual, entity, or agency.
(2) Consultation.--The Governor or the individual,
entity, or agency designated under paragraph (1)(B)
shall consult with the Governor, State board of
education, State educational agency, State agency for
higher education, or other applicable State entities
(including the State agency responsible for early
childhood education), as appropriate, with respect to
the activities assisted under this section, including
the development of the grant application and
implementation of the activities.
(3) Construction.--Nothing in this subsection shall
be construed to negate or supersede the legal authority
under State law of any State agency, State entity, or
State public official over programs that are under the
jurisdiction of the agency, entity, or official.
(c) Application.--To be eligible to receive a grant under
this section, an eligible State shall submit an application to
the Secretary that--
(1) meets the requirement of this section;
(2) demonstrates that the eligible State is in full
compliance with--
(A) sections 206(b) and 207; and
(B) if applicable, sections 207(b) and 208,
as such sections were in effect on the day
before the date of enactment of the Higher
Education Amendments of 2005;
(3) includes a description of how the eligible State
intends to use funds provided under this section;
(4) includes measurable objectives for the use of the
funds provided under this section;
(5) describes how funded activities will--
(A) reduce shortages, if any, of--
(i) highly qualified general and
special education teachers, including
in low-income urban and rural areas and
in high-need academic subject areas;
and
(ii) fully competent early childhood
educators; and
(B) be consistent with State, local, and
other education reform activities that promote
effective teaching skills and student academic
achievement and consistent with State early
learning standards for early childhood
education programs, including how funded
activities will support carrying out the
applicable requirements of the eligible State
under sections 1111 and 1119 of the Elementary
and Secondary Education Act of 1965, and
section 612(a)(14) of the Individuals with
Disabilities Education Act;
(6) contains an assurance that the eligible State
will carry out each of the intended uses of grant funds
described in paragraph (3);
(7) describes the eligible State's--
(A) current capacity to measure the
effectiveness of teacher preparation programs
and professional development activities within
the State using available statewide data;
(B) activities to enhance or expand the
integration of existing data systems to better
measure the effectiveness of teacher
preparation programs and professional
development activities within the State; or
(C) if such data systems do not exist, plans
for the development of an integrated statewide
data system to measure the effectiveness of
teacher preparation programs and professional
development activities within the State using
available statewide data; and
(8) contains such other information and assurances as
the Secretary may require.
(d) Required Uses of Funds.--An eligible State that receives
a grant under this section shall use the grant funds to reform
teacher preparation requirements, to coordinate with State
activities under section 2113(c) of theElementary and Secondary
Education Act of 1965 and subsections (a) and (b) of section 654 of the
Individuals with Disabilities Education Act, and to ensure that current
and prospective teachers are highly qualified, by carrying out each of
the following activities:
(1) Reforms.--Ensuring that all teacher preparation
programs in the State are preparing current or
prospective teachers to become highly qualified, to
understand scientifically based research and its
applicability, and to use technology effectively,
including use of instructional techniques to improve
student academic achievement, by assisting such
programs--
(A) in retraining faculty;
(B) in designing (or redesigning) teacher
preparation programs so that such programs--
(i) are based on rigorous academic
content and scientifically based
research (including scientifically
based reading research), and aligned
with challenging State academic content
standards;
(ii) promote effective teaching
skills; and
(iii) promote understanding of
effective instructional strategies for
students with special needs, including
students with disabilities, students
who are limited English proficient, and
students who are gifted and talented;
(C) in ensuring collaboration with
departments, programs, or units outside of the
teacher preparation program in relevant
academic content areas to ensure a successful
combination of training in both teaching and
such content;
(D) in developing high-quality, rigorous
clinical experiences (that include student
teaching experience) in which students
participate while enrolled in a teacher
preparation program, lasting not less than 1
term, through dissemination of best practices,
technical assistance, or other relevant
activities; and
(E) in collecting and using data, in
collaboration with institutions of higher
education, schools, and local educational
agencies, on teacher retention rates, by
school, to evaluate and strengthen the
effectiveness of the State's teacher support
system.
(2) Certification or licensure requirements.--
Reforming teacher certification or licensure
requirements to ensure that--
(A) teachers have the academic content
knowledge and teaching skills in the academic
subject areas that the teachers teach that are
necessary to help students meet challenging
State student academic achievement standards,
as required under section 1111(b)(1) of the
Elementary and Secondary Education Act of 1965;
(B) such requirements are aligned with
challenging State academic content standards,
as required under section 1111(b)(1) of the
Elementary and Secondary Education Act of 1965;
(C) teacher certification and licensure
assessments are--
(i) used for purposes for which such
assessments are valid and reliable;
(ii) consistent with relevant,
professional, and technical standards;
and
(iii) aligned with the reporting
requirements of sections 205 and 206;
and
(D) such requirements for high-need academic
subject areas (such as reading, mathematics,
science, and foreign language, including less
commonly taught languages) and high-need areas
(such as special education, language
instruction educational programs, and early
childhood education) exist and reflect
qualifications to help students meet high
standards, which may include the development of
a State test for such areas.
(3) Evaluation.--
(A) Annual evaluation.--An eligible State
that receives a grant under this section shall
evaluate annually the effectiveness of teacher
preparation programs and professional
development activities within the State. To the
extent practicable, such evaluation shall
examine--
(i) teachers' contributions to
improving student academic achievement,
as measured by State academic
assessments required under section
1111(b)(3) of the Elementary and
Secondary Education Act of 1965; and
(ii) teacher mastery of the academic
subject matter the teachers teach.
(B) Public reporting.--The eligible State
shall make the information described in
subparagraph (A) widely available through
public means, such as posting on the Internet,
distribution to the media, and distribution
through public agencies, except such reporting
shall notbe made in a case in which the
reporting of the data would reveal personally identifiable information
about a teacher or student.
(C) Better measurement of effectiveness.--
(i) In general.--An eligible State
that receives a grant under this
section and does not have the capacity
to measure the effectiveness of teacher
preparation programs and professional
development activities within the State
using available statewide data, shall
use a portion of funds received under
this section to enhance or expand the
integration of existing data systems,
as described in subsection (c)(7)(B),
or develop an integrated statewide data
system, as described in subsection
(c)(7)(C), to better measure and
provide information that will improve
the effectiveness of teacher
preparation programs on student
learning and achievement, and the
impact of pre-service and ongoing
professional development on teacher
placement and retention.
(ii) Technical quality; student
privacy; funds from other sources.--In
carrying out clause (i), the eligible
State shall ensure--
(I) the technical quality of
the data system to maximize the
validity, reliability, and
accessibility of the data;
(II) that student privacy is
protected and that individually
identifiable information about
students, their achievements,
and their families remains
confidential, in accordance
with the Family Educational
Rights and Privacy Act of 1974;
and
(III) that funds provided
under this section are used to
supplement State efforts to
enhance or expand the
integration of existing data
systems or to develop an
integrated statewide data
system.
(e) Allowable Uses of Funds.--An eligible State that receives
a grant under this section may use the grant funds to reform
teacher preparation requirements, to coordinate with State
activities under section 2113(c) of the Elementary and
Secondary Education Act of 1965 and subsections (a) and (b) of
section 654 of the Individuals withDisabilities Education Act,
and to ensure that current and future teachers are highly qualified, by
carrying out any of the following activities:
(1) Alternatives to traditional preparation for
teaching and state certification or licensure.--
Providing prospective teachers with alternative routes
to State certification or licensure and alternative
route programs to become highly qualified teachers
through--
(A) innovative approaches that reduce
unnecessary barriers to State certification or
licensure while producing highly qualified
teachers;
(B) a selective means for admitting
individuals into such programs that includes
passage of State approved teacher examinations
in appropriate subject areas;
(C) programs that help prospective teachers
develop effective teaching skills and
strategies through knowledge of research-based
information on the learning process and
learning practices;
(D) programs that provide support to teachers
during the teachers' initial years in the
profession; and
(E) alternative routes to State certification
or licensure of teachers for qualified
individuals, including mid-career professionals
from other occupations, paraprofessionals,
former military personnel, and recent college
graduates with records of academic distinction.
(2) Innovative programs.--Planning and implementing
innovative programs to enhance the ability of
institutions of higher education, including charter
colleges of education, or university and local
educational agency partnership schools, to prepare
highly qualified teachers, which programs shall--
(A) permit flexibility in the manner in which
the institution of higher education meets State
requirements as long as graduates, during the
graduates' initial years in the profession,
increase student academic achievement;
(B) provide a description in the application
of long-term data gathered from teachers'
performance over multiple years in the
classroom regarding the teachers' ability to
increase student academic achievement;
(C) ensure high-quality preparation of
teachers from underrepresented groups;
(D) create performance measures that can be
used to document the effectiveness of
innovativemethods for preparing highly
qualified teachers; and
(E) develop frameworks for exemplary
induction programs informed by research and
best practices.
(3) Teacher recruitment and retention.--Undertaking
activities that develop and implement effective
mechanisms to ensure that local educational agencies
and schools are able to recruit and retain highly
qualified teachers, which may include the following
activities:
(A) Performance based compensation.--
Assisting local educational agencies in
developing--
(i) performance systems that reward
teachers who increase student academic
achievement and take on additional
responsibilities, such as teacher
mentoring and serving as master
teachers; and
(ii) strategies that provide
differential and bonus pay in high-need
local educational agencies to recruit
and retain--
(I) principals;
(II) highly qualified
teachers who teach in high-need
academic subject areas (such as
reading, mathematics, science,
and foreign language, including
less commonly taught
languages);
(III) highly qualified
teachers who teach in schools
identified for school
improvement under section
1116(b) of the Elementary and
Secondary Education Act of
1965;
(IV) highly qualified special
education teachers;
(V) highly qualified teachers
specializing in teaching
children who are limited
English proficient; and
(VI) highly qualified
teachers in low-income urban
and rural schools or districts.
(B) Additional mechanisms.--Developing and
implementing effective mechanisms to ensure
that local educational agencies and schools are
able to--
(i) address needs identified with
respect to--
(I) underrepresented groups;
(II) high-need academic
subject areas (such as reading,
mathematics, science, and
foreign language, including
less commonly taught
languages);
(III) high-need areas (such
as special education, language
instruction educational
programs for limited English
proficient students, and early
childhood education);
(IV) high-need communities,
such as rural and urban areas;
and
(V) high-need schools,
including schools with high
rates of teacher turnover;
(ii) offer teacher mentoring for new
teachers during such teachers' initial
years of teaching; and
(iii) provide access to ongoing
professional development and innovative
training opportunities for teachers and
administrators.
(C) Teacher advancement.--Assisting local
educational agencies in developing teacher
advancement and retention initiatives that
promote professional growth and emphasize
multiple career paths (such as paths to
becoming a highly qualified mentor teacher or
exemplary teacher) and pay differentiation.
(D) Recruit qualified professionals.--
Developing recruitment programs or assisting
local educational agencies in--
(i) recruiting qualified
professionals from other fields,
including highly qualified
paraprofessionals (as defined in
section 2102 of the Elementary and
Secondary Education Act of 1965); and
(ii) providing such professionals
with alternative routes to teacher
certification or licensure.
(E) Underrepresented populations.--Providing
increased opportunities for minorities,
individuals with disabilities, and other
individuals underrepresented in the teaching
profession to become highly qualified teachers.
(F) Rural education recruitment and retention
programs.--Making grants to rural school
districts, or a consortia of rural school
districts, to implement--
(i) teacher recruitment strategies,
which may include tuition assistance,
studentloan forgiveness, housing
assistance, bonus pay, and other effective approaches;
(ii) teacher retention strategies,
such as mentoring programs and ongoing
opportunities for professional growth
and advancement; and
(iii) partnerships with institutions
of higher education designed to--
(I) prepare beginning
teachers to teach; and
(II) assist teachers
(including teachers who teach
multiple subjects) to become
highly qualified.
(4) Teacher scholarships and support.--Providing--
(A) scholarships to help students, such as
individuals who have been accepted by, or who
are enrolled in, a program of undergraduate
education or initial teacher preparation at an
institution of higher education, pay the costs
of tuition, room, board, and other expenses of
completing a teacher preparation program, if--
(i) the Secretary establishes such
requirements as the Secretary
determines necessary to ensure that
recipients of scholarships under this
section who complete teacher
preparation programs--
(I) subsequently teach in an
early childhood education
program or a high-need local
educational agency for a period
of time equivalent to the
period of time for which the
recipient received scholarship
assistance, plus an additional
1 year; or
(II) repay the amount of the
scholarship if the recipient
does not teach as described in
subclause (I); and
(ii) the eligible State provides an
assurance that the eligible State will
recruit minority students to become
highly qualified teachers;
(B) support services, if needed, to enable
scholarship recipients to complete
postsecondary education programs, or to move
from a career outside of the field of education
into a teaching career; and
(C) follow-up services to former scholarship
recipients during the recipients' initial years
of teaching.
(5) Teacher removal.--Developing and implementing
effective mechanisms to ensure that local educational
agencies and schools are able to expeditiously remove
incompetent or unqualified teachers consistent with
procedures to ensure due process for the teachers.
(6) Teacher effectiveness.--Developing--
(A) systems to measure the effectiveness of
teacher preparation programs and professional
development programs; and
(B) strategies to document gains in student
academic achievement or increases in teacher
mastery of the academic subject matter the
teachers teach, as a result of such programs.
(7) Early childhood educators.--Developing strategies
to improve and expand teacher preparation programs for
early childhood educators to teach in early childhood
education programs.
(8) Professional development.--Developing and
enhancing high-quality professional development,
instructional materials, and relevant educational
materials.
(9) Technology.--Assisting teachers to use technology
effectively, including use for instructional techniques
and the collection, management, and analysis of data to
improve teaching, learning, and decision making for the
purpose of increasing student academic achievement.
(10) Areas of instructional shortage.--Increasing the
number of--
(A) teachers in the classroom providing
instruction in high-need academic subject areas
(such as reading, mathematics, science, and
foreign language, including less commonly
taught languages) and high-need areas (such as
special education, language instruction
educational programs for limited English
proficient students, and early childhood
education); and
(B) special education faculty dedicated to
preparing highly qualified special education
teachers at institutions of higher education.
(11) Technical assistance.--Providing technical
assistance to low-performing programs of teacher
preparation within institutions of higher education
identified under section 207(a).
(12) Evaluation support.--Performing data collection,
evaluation, and reporting to meet the requirements of
subsection (d)(3).
(13) Professional advancement.--Developing a
professional advancement system to--
(A) initiate or enhance a system in which
highly qualified teachers who pursue advanced
licensure levels are required to demonstrate
increased competencies and undertake increased
responsibilities for increased compensation as
the teachers progress through levels
established by the State; or
(B) provide opportunities for professional
growth, including through--
(i) a nationally recognized advance
credentialing system; or
(ii) special certification in
advanced placement or international
baccalaureate content, teaching gifted
and talented students, and pedagogy.
(f) 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. PARTNERSHIP GRANTS.
(a) Grants.--From amounts made available under section
209(a)(2) for a fiscal year, the Secretary is authorized to
award grants under this section, on a competitive basis, to
eligible partnerships to enable the eligible partnerships to
carry out the activities described in subsections (e) and (f).
(b) Definitions.--
(1) Eligible partnership.--
(A) In general.--In this part, the term
``eligible partnership'' means an entity that
shall include--
(i) a partner institution;
(ii) a school of arts and sciences;
(iii) a high-need local educational
agency and a school or a consortium of
schools served by the agency; and
(iv) at least 1 individual or entity
described in subparagraph (B).
(B) Additional individuals and entities.--In
this part, the term ``eligible partnership''
means an entity that shall include at least 1
of the following:
(i) A Governor.
(ii) A State educational agency.
(iii) A State board of education.
(iv) A State agency for higher
education.
(v) A school or department within the
partner institution focusing on
education,psychology, human
development, or a department with comparable expertise in the
disciplines of teaching, learning, and child and adolescent
development.
(vi) An institution of higher
education or a department within such
institution, not described in
subparagraph (A).
(vii) A public charter school.
(viii) A public or private elementary
school or secondary school.
(ix) A public or private nonprofit
educational organization.
(x) A business.
(xi) A science-, mathematics-, or
technology-oriented entity.
(xii) An early childhood education
program.
(xiii) A teacher organization.
(xiv) An educational service agency.
(xv) A consortium of local
educational agencies.
(xvi) A nonprofit telecommunications
entity.
(2) Partner institution.--In this section, the term
``partner institution'' means an institution of higher
education, which may include a 2-year institution of
higher education offering a dual program with a 4-year
institution of higher education, 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
206(b); and
(II) using the State report
card on teacher preparation
required under section 206(b),
after the first publication of
such report card and for every
year thereafter; or
(B) that requires all the students of the
program to meet high academic standards and
participate in intensive clinical experience,
and--
(i) in the case of secondary school
candidates, to successfully complete--
(I) a major or its equivalent
in coursework in the academic
subject area in which the
candidate intends to teach; or
(II) a related major in the
academic subject area in which
the candidate intends to teach;
(ii) in the case of elementary school
candidates, to successfully complete--
(I) an academic major or its
equivalent in coursework in the
arts and sciences; or
(II) a major in elementary
education with a significant
amount of coursework in the
arts and sciences; and
(iii) in the case of early childhood
educators, to become fully competent
and meet degree requirements, as
established by the State.
(c) 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 all the partners with
respect to the preparation, induction, and professional
development of early childhood educators, general and
special education teachers, and principals;
(2) a description of the extent to which the teacher
preparation program of the eligible partnership
prepares new teachers with effective teaching skills;
(3) a description of how the eligible partnership
will coordinate with other teacher preparation or
professional development programs, including those
funded under the Elementary and Secondary Education Act
of 1965 and the Individuals with Disabilities Education
Act, and how the activities of the eligible partnership
will be consistent with State, local, and other
education reform activities that promote student
achievement;
(4) a resource assessment that describes the
resources available to the eligible partnership, the
intended use of the grant funds (including a
description of how the grant funds will be fairly
distributed), and the commitment of the resources of
the eligible partnership to the activities assisted
under this part, including financial support, faculty
participation, time commitments, and continuation of
the activities when the grant period ends;
(5) a description of--
(A) how the eligible partnership will meet
the purposes of this part;
(B) how the eligible partnership will carry
out the activities required under subsection
(e) and any permissible activities under
subsection (f);
(C) the eligible partnership's evaluation
plan pursuant to section 205(b);
(D) how the eligible partnership will align
the teacher preparation program with the
challenging student academic achievement
standards, State early learning standards for
early childhood education programs (where
applicable), andchallenging academic content
standards, established by the State in which the partnership is
located;
(E) how faculty of the teacher preparation
program at the partner institution will serve,
over the period of the grant, with highly
qualified teachers in the classrooms of the
high-need local educational agency included in
the eligible partnership;
(F) how the eligible partnership will ensure
that teachers, principals, and superintendents
in all schools (including private schools, as
appropriate) located in the geographic areas
served by an eligible partnership under this
section are provided information about the
activities carried out with funds under this
section, including through electronic means;
(G) how the eligible partnership will design,
implement, or enhance the clinical program
component, including promoting close
supervision of student teachers by faculty of
the teacher preparation program and mentor
teachers while in the program and during the
student teachers' initial years of teaching if
hired by schools included in the eligible
partnership;
(H) how the eligible partnership will develop
or enhance an induction program that includes
high-quality professional development to
support new teachers during the teachers'
initial years of teaching that includes teacher
mentoring and collaborating with teachers in
the same grade, department, or field; and
(I) how the eligible partnership will
collect, analyze, use, and disseminate data on
the retention of all teachers in schools
located in the geographic areas served by the
eligible partnership to evaluate the
effectiveness of its teacher support system;
and
(6) an assurance that the eligible partnership will
carry out each of the activities described in paragraph
(5).
(d) 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 under this
section.
(2) Regular communication.--To ensure timely and
meaningful consultation, regular communication shall
occur among all members of the eligiblepartnership,
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 only if a written consent
signed by all members of the eligible partnership is
submitted to the Secretary.
(e) Required Uses of Funds.--An eligible partnership that
receives a grant under this section shall use the grant funds
to carry out each of the following activities:
(1) Reforms.--Ensuring that each teacher preparation
program and each early childhood educator preparation
program, where applicable, of the eligible partnership
that is assisted under this section addresses the needs
identified in the needs assessment of the partnership
and is preparing current or prospective teachers to be
highly qualified, and, where applicable, early
childhood educators to be fully competent, to
understand scientifically based research and its
applicability, and to use technology effectively,
including use of instructional techniques to improve
student academic achievement, and in the case of early
childhood educators, techniques to improve children's
cognitive, social, emotional, and physical development,
by assisting such programs--
(A) in retraining faculty;
(B) in designing (or redesigning) teacher
preparation programs so that such programs--
(i) are based on rigorous academic
content and scientifically based
research (including scientifically
based reading research), and aligned
with challenging State academic content
standards, as required under section
1111(b)(1) of the Elementary and
Secondary Education Act of 1965, and
for early childhood educators, aligned
with State early learning standards;
(ii) promote effective teaching
skills;
(iii) promote understanding of
effective instructional strategies for
students with special needs, including
students with disabilities, students
who are limited English proficient,
students who are gifted and talented,
and children in early childhood
education programs; and
(iv) promote high-quality
mathematics, science, and foreign
language instruction, where applicable;
(C) in ensuring collaboration with
departments, programs, or units outside of the
teacher preparation program in all academic
content areas to ensure a successful
combination of training in both teaching and
such content; and
(D) in developing high-quality, rigorous
clinical experiences, lasting not less than 1
term, through dissemination of best practices,
technical assistance, or other relevant
activities.
(2) Clinical experience and interaction.--Improving
sustained and high-quality preservice clinical
experiences, including--
(A) providing teacher mentoring; and
(B) 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
and release time, for such interaction.
(3) Support programs for new teachers.--Creating a
program to support new teachers during the initial
years of teaching (for not less than 1 year and not
more than 3 years). Such program shall promote
effective teaching skills and may include the following
components:
(A) Development of skills in educational
interventions based on scientifically based
research.
(B) Development of knowledge of
scientifically based research on teaching and
learning.
(C) Inclusion of faculty who model the
integration of research and practice in the
classroom.
(D) Opportunities for--
(i) high-quality teacher mentoring;
and
(ii) additional professional
development, dissemination of evidence-
based research on educational
practices, and professional development
activities.
(E) Interdisciplinary collaboration among
exemplary teachers, faculty, researchers, and
other staff who prepare new teachers in the
learning process and the assessment of
learning.
(f) Allowable Uses of Funds.--An eligible partnership that
receives a grant under this section may use the grant funds to
carry out any of the following activities that address the
needs identified in the needs assessment:
(1) Alternatives to traditional preparation for
teaching and state certification or licensure.--The
activity described in section 202(e)(1).
(2) Dissemination and coordination.--Broadly
disseminating information on effective practices used
by the eligible partnership, and coordinating with the
recruitment and training activities of the Governor,
State board of education, State agency for higher
education, State agency responsible for early childhood
education, and State educational agency, as
appropriate.
(3) Innovative programs.--Developing innovative
programs designed to provide graduates of programs
funded under this title with opportunities to continue
their education through supports and opportunities to
improve instructional practices in the initial years of
teaching, including the following:
(A) Internships.--
(i) Teacher preparation enhancement
internship.--Developing a 1-year paid
internship program for students who
have completed an initial teacher
preparation program, or alternative
routes to State certification or
licensure program, to enable such
students to develop the skills and
experience necessary for success in
teaching, including providing intensive
clinical training and combining in-
service instruction in teacher methods
and assessments with classroom
observations, experiences, and
practices. Such interns shall have a
reduced teaching load and a mentor for
assistance in the classroom.
(ii) Mid-career professional
internships.--Developing a 1-year paid
internship program for mid-career
professionals from other occupations,
former military personnel, and recent
college graduates from fields other
than teacher preparation with records
of academic distinction to enable such
individuals to develop the skills and
experience necessary for success in
teaching, including providing intensive
clinical training and combining in-
service instruction in teacher methods
and assessments with classroom
observations, experiences, and
practices. Such interns shall have a
reduced teaching load and a mentor for
assistance in the classroom.
(B) Residency programs for new teachers.--
Supporting teachers in a residency program that
provides an induction period for all new
general education and special education
teachers that includes--
(i) a forum for information sharing
among prospective teachers, teachers,
principals, administrators, and
participating faculty in the partner
institution; and
(ii) the application of
scientifically based research on
teaching and learning generated by
entities such as the Institute of
Education Sciences, and the National
Research Council of the National
Academies.
(C) Pathways for paraprofessionals to enter
teaching.--Creating intensive programs to
provide the coursework and clinical experiences
needed by highly qualified paraprofessionals,
as defined in section 2102 of the Elementary
and Secondary Education Act of 1965, to qualify
for State teacher certification or licensure to
become highly qualified teachers.
(4) Managerial and leadership skills.--Developing and
implementing proven mechanisms to provide principals
and superintendents with effective managerial,
leadership, curricula, and instructional skills that
result in increased student academic achievement.
(5) Teacher scholarships and support.--Providing--
(A) scholarships to help students, such as
individuals who have been accepted by, or who
are enrolled in, a program of undergraduate
education at an institution of higher
education, pay the costs of tuition, room,
board, and other expenses of completing a
teacher preparation program, if--
(i) the Secretary establishes such
requirements as the Secretary
determines necessary to ensure that
recipients of scholarships under this
paragraph who complete teacher
preparation programs--
(I) subsequently teach in a
high-need local educational
agency for a period of time
equivalent to the period of
time for which the recipient
received the scholarship
assistance, plus an additional
1 year; or
(II) repay the amount of the
scholarship if the recipient
does not teach as described in
subclause (I); and
(ii) the eligible partnership
provides an assurance that the eligible
partnership will recruit minority
students to become highly qualified
teachers;
(B) support services, if needed, to enable
scholarship recipients to complete
postsecondary education programs, or to
transition from a career outside of the field
of education into a teaching career; and
(C) follow-up services for former scholarship
recipients during the recipients' initial years
of teaching.
(6) Coordination with community colleges.--
(A) Teacher preparation programs.--
Coordinating with 2-year institutions of higher
education to implement teacher preparation
programs, including through distance learning,
for the purposes of allowing prospective
teachers--
(i) to obtain a bachelor's degree and
State certification or licensure; and
(ii) to become highly qualified
teachers.
(B) Professional development.--Coordinating
with 2-year institutions of higher education to
provide professional development that--
(i) improves the academic content
knowledge of teachers in the academic
subject areas in which the teachers are
certified or licensed to teach, or in
which the teachers are working toward
certification or licensure to teach;
and
(ii) promotes effective teaching
skills.
(7) Clinical experience in science, mathematics, and
technology.--Creating opportunities for clinical
experience and training for teachers and prospective
teachers through participation with professionals in
business, research, and work environments in areas
relating to science, mathematics, and technology,
including opportunities for using laboratory equipment.
(8) Professional development.--Creating opportunities
for enhanced and ongoing professional development for
experienced general education andspecial education
teachers, early childhood educators, principals, administrators, and
faculty.
(9) Technology.--The activity described in section
202(e)(9).
(10) Areas of instructional shortage.--Increasing the
number of--
(A) teachers in the classroom providing
instruction in high-need academic subject areas
(such as reading, mathematics, science, and
foreign language, including less commonly
taught languages), and high-need areas (such as
special education, language instruction
educational programs for limited English
proficient students, and early childhood
education);
(B) special education faculty dedicated to
preparing highly qualified special education
teachers at institutions of higher education;
and
(C) faculty at institutions of higher
education with expertise in instruction of
students who are limited English proficient.
(11) Improving instruction.--Improving instruction
by--
(A) improving understanding and instruction
in core academic subjects and other,
specialized courses, such as geography,
American history and government, and world
history; and
(B) creating externships for teachers and
prospective teachers for field experience and
training through participation in business,
research, and work environments in high-need
academic subject areas (such as reading,
mathematics, science, and foreign language,
including less commonly taught languages) and
high-need areas (such as special education,
language instruction educational programs for
limited English proficient students, and early
childhood education).
(12) Graduate programs.--Developing, in collaboration
with departments, programs, or units of both academic
content and teacher education within a partner
institution, master's degree programs that meet the
demonstrated needs of teachers in the high-need local
educational agency participating in the eligible
partnership for content expertise and teaching skills.
(13) Literacy teacher training.--Establishing and
implementing a program that strengthens content
knowledge and teaching skills of secondary school
teachers in literacy that--
(A) provides teacher training and stipends
for literacy coaches who train classroom
teachers to implement literacy programs;
(B) develops or redesigns rigorous research-
based curricula that are aligned with
challenging State academic content standards,
as required under section 1111(b)(1) of the
Elementary and Secondary Education Act of 1965,
and with postsecondary standards for reading
and writing;
(C) provides training and stipends for
teachers to tutor students with intense
individualized reading, writing, and subject
matter instruction during or beyond the school
day;
(D) provides opportunities for teachers to
plan and assess instruction with other
teachers, school leaders, and faculty at
institutions of higher education; and
(E) establishes an evaluation and
accountability plan for activities conducted
under this paragraph to measure the impact of
such activities.
(g) 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.
(h) 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. 204. ADMINISTRATIVE PROVISIONS.
(a) Duration; Number of Awards; Payments.--
(1) Duration.--
(A) Eligible states.--Grants awarded to
eligible States under this part shall be
awarded for a period not to exceed 3 years.
(B) Eligible partnerships.--Grants awarded to
eligible partnerships under this part shall be
awarded for a period of 5 years.
(2) Number of awards.--An eligible partnership may
not receive more than 1 grant during a 5-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 anothereligible partnership
consisting of new members and receiving a grant with such other
eligible partnership before the 5-year period described in the
preceding sentence applicable to the eligible partnership with which
the individual member has first partnered has expired.
(3) Payments.--The Secretary shall make annual
payments of grant funds awarded under this part.
(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.--In recommending applications to the
Secretary for funding under this part, the panel
shall--
(A) with respect to grants under section 202,
give priority to eligible States--
(i) that have innovative reforms to
hold institutions of higher education
with teacher preparation programs
accountable for preparing teachers to
become highly qualified and have
effective teaching skills;
(ii) that have innovative efforts
aimed at reducing the shortage of
highly qualified general and special
education teachers, including in low-
income urban and rural areas and in
high-need academic subject areas (such
as reading, mathematics, science, and
foreign language, including less
commonly taught languages); and
(iii) whose awards promote an
equitable geographic distribution of
grants among rural and urban areas; and
(B) with respect to grants under section 203,
give priority--
(i) to applications from broad-based
eligible partnerships that involve
businesses and community organizations;
and
(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 theamounts 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.
(c) Matching Requirements.--
(1) State grants.--Each eligible State receiving a
grant under section 202 shall provide, from non-Federal
sources, an amount equal to 50 percent of the amount of
the grant (in cash or in kind) to carry out the
activities supported by the grant.
(2) Partnership grants.--Each eligible partnership
receiving a grant under section 203 shall provide, from
non-Federal sources (in cash or in kind), an amount
equal to 25 percent of the amount of the grant for the
first year of the grant, 35 percent of the amount of
the grant for the second year of the grant, and 50
percent of the amount of the grant for each succeeding
year of the grant.
(d) Limitation on Administrative Expenses.--An eligible State
or eligible partnership that receives a grant under this part
may use not more than 2 percent of the grant funds for purposes
of administering the grant.
(e) Additional Activities.--The Secretary shall use funds
repaid pursuant to section 202(e)(4)(A)(i)(II) or section
203(f)(5)(A)(i)(II) to carry out additional activities under
section 202 or 203, respectively.
SEC. 205. ACCOUNTABILITY AND EVALUATION.
(a) State Grant Accountability Report.--An eligible State
that receives a grant under section 202 shall submit an annual
accountability report to the Secretary and the authorizing
committees. Such report shall include a description of the
degree to which the eligible State, in using funds provided
under such section, has made progress in meeting the purposes
of this part and substantial progress in meeting the following
goals, as applicable:
(1) Student academic achievement.--Increasing student
academic achievement for all students as defined by the
eligible State.
(2) Raising standards.--Raising the State academic
standards required to enter the teaching profession as
a highly qualified teacher, and where applicable, as a
fully competent early childhood educator.
(3) Initial certification or licensure.--Improving
the pass rates and scaled scores for initial State
teacher certification or licensure, or increasing the
numbers of qualified individuals being certified or
licensed as teachers through alternative routes to
State certification or licensure programs.
(4) Percentage of highly qualified teachers.--
Providing data on the progress of the State towards
meeting the highly qualified teacher requirements under
section 1119(a)(2) of the Elementary and Secondary
Education Act of 1965.
(5) Decreasing teacher shortages.--Decreasing
shortages of--
(A) highly qualified teachers in--
(i) low-income urban and rural areas;
(ii) high-need academic subject areas
(such as reading, mathematics, science,
and foreign language, including less
commonly taught languages);
(iii) special education; and
(iv) high-need areas (such as special
education, language instruction
educational programs for limited
English proficient students, and early
childhood education); and
(B) fully competent early childhood
educators.
(6) Increasing opportunities for professional
development.--Increasing opportunities for enhanced and
ongoing professional development that--
(A) improves the academic content knowledge
of teachers in the academic subject areas in
which the teachers are certified or licensed to
teach or in which the teachers are working
toward certification or licensure to teach; and
(B) promotes effective teaching skills.
(b) Eligible Partnership Evaluation.--Each eligible
partnership submitting an application for a grant under section
203 shall establish and include in such application, an
evaluation plan that includes strong performance objectives.
The plan shall include objectives and measures for increasing--
(1) student achievement for all students as measured
by the eligible partnership;
(2) teacher retention in the first 3 years of a
teacher's career;
(3) improvement in the pass rates and scaled scores
for initial State certification or licensure of
teachers;
(4) the percentage of highly qualified teachers hired
by the high-need local educational agency participating
in the eligible partnership; and
(5) the percentage of--
(A) highly qualified teachers among
underrepresented groups, in high-need academic
subjectareas (such as reading, mathematics,
science, and foreign language, including less commonly taught
languages), in high-need areas (such as special education, language
instruction educational programs for limited English proficient
students, and early childhood education), and in high-need schools;
(B) elementary school, middle school, and
secondary school classes taught by teachers who
are highly qualified;
(C) early childhood education program classes
taught by providers who are fully competent;
and
(D) highly qualified special education
teachers.
(c) Revocation of Grant.--
(1) Eligible states.--If the Secretary determines
that an eligible State is not making substantial
progress in meeting the purposes, goals, objectives,
and measures, as appropriate, by the end of the second
year of a grant under this part, then the grant payment
shall not be made for the third year of the grant.
(2) Eligible partnerships.--If the Secretary
determines that an eligible partnership is not making
substantial progress in meeting the purposes, goals,
objectives, and measures, as appropriate, by the end of
the third year of a grant under this part, then the
grant payments shall not be made for any succeeding
year of the grant.
(d) Evaluation and Dissemination.--The Secretary shall
evaluate the activities funded under this part and report the
Secretary's findings regarding the activities to the
authorizing committees. The Secretary shall broadly
disseminate--
(1) successful practices developed by eligible States
and eligible partnerships under this part; and
(2) information regarding such practices that were
found to be ineffective.
SEC. 206. 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, both for traditional teacher
preparation programs and alternative routes to State
certification or licensure programs, the following
information:
(A) Pass rates and scaled scores.--For the
most recent year for which the information is
available for those students who took the
assessments and are enrolled in the traditional
teacher preparation program or alternative
routes to State certification or licensure
program, and for those who have taken the
assessments and have completed the traditional
teacher preparation program or alternative
routes to State certification or licensure
program during the 2-year period preceding such
year, for each of the assessments used for
teacher certification or licensure by the State
in which the program is located--
(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 such
students who passed each such
assessment;
(iii) the percentage of students
taking an assessment who completed the
teacher preparation program after
enrolling in the program, which shall
be made available widely and publicly
by the State;
(iv) the average scaled score for all
students who took each 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.
(B) Program information.--The criteria for
admission into the program, the number of
students in the program (disaggregated by race
and gender), the average number of hours of
supervised clinical experience required for
those in the program, the number of full-time
equivalent faculty and students in the
supervised clinical experience, and the total
number of students who have been certified or
licensed as teachers, disaggregated by subject
and area of certification or licensure.
(C) 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.
(D) Designation as low-performing.--Whether
the program has been designated as low-
performing by the State under section 207(a).
(E) Use of technology.--A description of the
activities that prepare teachers to effectively
integrate technology into curricula and
instruction and effectively use technology to
collect, manage, and analyze data in order to
improve teaching, learning, and decision making
for the purpose of increasing student academic
achievement.
(2) Report.--Each eligible partnership receiving a
grant under section 203 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 205(b).
(3) Fines.--The Secretary may impose a fine not to
exceed $25,000 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)(A), with respect to an average pass rate and scaled
score on each State certification or licensure
assessment taken over a 3-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, annually, in a
uniform and comprehensible manner that conforms with
the definitions and methods established by the
Secretary, a 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 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 in order to
attain initial teacher certification or
licensure and to be certified or licensed to
teach particular academic subject areas or in
particular 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 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 that offers
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 courseworkand taken the
assessment who pass such assessment;
(ii) the percentage of all such
students at all such institutions
taking the assessment who pass such
assessment; and
(iii) the percentage of students
taking an assessment who completed the
teacher preparation program after
enrolling in the program, which shall
be made available widely and publicly
by the State.
(E) A description of alternative routes to
State 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
2-year period preceding the date of the
determination, 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 period preceding the
date of the determination, 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, the criteria for admission into the
program, the number of students in the program,
disaggregated by race 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), the average
number of hours of supervised clinical
experience required for those in the program,
and 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,
thenumber 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) Using the data generated under
subparagraphs (G) and (H), a description of the
extent to which teacher preparation programs
are helping to address shortages of highly
qualified teachers, by area of certification or
licensure, subject, and specialty, in the
State's public schools, including those areas
described in section 205(a)(5).
(J) A description of the activities that
prepare teachers to effectively integrate
technology into curricula and instruction and
effectively use technology to collect, manage,
and analyze data in order to improve teaching,
learning, and decision making for the purpose
of increasing student academic achievement.
(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) Report of the Secretary on the Quality of Teacher
Preparation.--
(1) Report card.--The Secretary shall provide to
Congress, 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 (J) of subsection
(b)(1). Such report shall identify States for which
eligible States and eligible partnerships received a
grant under this part. Such report shall be so
provided, published, and made available annually.
(2) Report to congress.--The Secretary shall prepare
and submit a report to Congress 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
testthat is used in more than 1 State for teacher certification or
licensure.
(3) Special rule.--In the case of a teacher
preparation program with fewer than 10 scores reported
on any single initial teacher certification or
licensure assessment during an academic year, the
Secretary shall collect and publish information, and
make publicly available, with respect to an average
pass rate and scaled score on each State certification
or licensure assessment taken over a 3-year period.
(d) 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. 207. STATE FUNCTIONS.
(a) State Assessment.--In order to receive funds under this
Act, a State shall have in place a procedure to identify and
assist, through the provision of technical assistance, low-
performing programs of teacher preparation. Such State shall
provide the Secretary an annual list of such low-performing
teacher preparation programs that includes an identification of
those programs at risk of being placed on such list. Such
levels of performance shall be determined solely by the State
and may include criteria based on information collected
pursuant to this part. Such assessment shall be described in
the report under section 206(b).
(b) Termination of Eligibility.--Any program of teacher
preparation 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) shall not be permitted to accept or enroll any
student that receives aid under title IV in the
institution's teacher preparation program; and
(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.
(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 206 and 207, 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 allow identification of
individuals.
(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
not later than the end of the 2005-2006 school year, as
required under section 1119 of the Elementary and Secondary
Education Act of 1965, and that each person employed as a
special education teacher in the State who teaches elementary
school, middle school, or secondary school is highly qualified
by such deadline, as required under section 612(a)(14)(C) of
the Individuals with Disabilities Education Act,--
(1) the Secretary shall, 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,
the Secretary shall use such data to carry out
requirements of this part related to assessments, pass
rates, and scaled scores.
(c) Limitations.--
(1) 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.
(2) 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.
(3) National system of teacher certification or
licensure prohibited.--Nothing in this title shall be
construed to permit, allow, encourage, orauthorize the
Secretary to establish or support any national system of teacher
certification or licensure.
(d) Release of Information to Teacher Preparation Programs.--
(1) In general.--For the purpose of improving teacher
preparation programs, a State educational agency 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 educational agency.
(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 educational agency 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.
(a) In General.--There are authorized to be appropriated to
carry out this part such sums as may be necessary for fiscal
year 2006 and each of the 5 succeeding fiscal years, of which--
(1) 50 percent shall be available for each fiscal
year to award grants under section 202; and
(2) 50 percent shall be available for each fiscal
year to award grants under section 203.
(b) Special Rule.--If the Secretary determines that there is
an insufficient number of meritorious applications for grants
under section 202 or 203 to justify awarding the full amount
described in paragraph (1) or (2) of subsection (a),
respectively, the Secretary may, after funding the meritorious
applications, use the remaining funds for grants under the
other such section.
Part A--Strengthening Institutions
SEC. 311. PROGRAM PURPOSE.
(a) General Authorization.-- * * *
(b) Grants Awarded; Special Consideration.--(1) From the
sums available for this part under section 399(a)(1), the
Secretary may award grants to any eligible institution with an
application approved under section [351] 391 in order to assist
such an institution to plan, develop, or implement activities
that promise to strengthen the institution.
* * * * * * *
(3) Special consideration shall be given to
applications which purpose, pursuant to the
institution's plan, to engage in--
(A) * * *
(B) * * *
(C) * * *
(D) * * *
(E) * * *
(F) students services, including services
that will assist in the education of special
populations.
(c) Authorized Activities.-- * * *
* * * * * * *
(6) Tutoring, counseling, and student service
programs designed to improve academic success,
including innovative, customized, remedial education
and English language instruction courses designed to
help retain students and move the students rapidly into
core courses and through program completion.
(7) Education or counseling services designed to
improve the financial literacy and economic literacy of
students or the student's parents.
[(7)] (8) Funds management, administrative
management, and acquisition of equipment for use in
strengthening funds management.
[(8)] (9) Joint use of facilities, such as
laboratories and libraries.
[(9)] (10) Establishing or improving a development
office to strengthen or improve contributions from
alumni and the private sector.
[(10)] (11) Establishing or improving an endowment
fund.
[(11)] (12) Creating or improving facilities for
Internet or other distance learning academic
instruction capabilities, including purchase or rental
of telecommunications technology equipment or services.
[(12)] (13) Other activities proposed in the
application submitted pursuant of [subsection (c)]
subsection (b) and section 391 that--
(A) contribute to carrying out the purposes
of the program assisted under this part; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
* * * * * * *
SEC. 312. DEFINITIONS; ELIGIBILITY.
(a) Educational and General Expenditures.-- * * *
(b) Eligible Institution.--For the purpose of this
part, the term ``eligible institution'' means--
(1) an institution of higher education--
(A) which has an enrollment of needy
students as required by [subsection (c) of this
section] subsection (d);
* * * * * * *
(c) Endowment Fund.-- * * *
* * * * * * *
(d) Enrollment of Needy Students.-- * * *
(1) * * *
(2) a substantial percentage of students receiving
Pell Grants in the second fiscal year preceding the
fiscal year for which determination is being made, in
comparison with the percentage of students receiving
Pell Grants at all such institutions in the second
fiscal year preceding the fiscal year for which the
determination is made, unless the requirement of this
[subdivision] paragraph is waived under section 392(a).
SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
UNIVERSITIES.
(a) Program Authorized.-- * * *
(b) * * *
(1) * * *
(2) * * *
[(3) Tribal college or university.--The term ``Tribal
College or University'' has the mean give the term
``tribally controlled college or university'' in
section 2 of the Tribally Controlled College or
University Assistance Act of 1978, and includes an
institution listed in the Equity in Educational Land
Grant Status Act of 1994.]
(3) Tribal college or university.--The term ``Tribal
College or University'' means an institution that--
(A) qualifies for funding under the Tribally
Controlled College or University 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).
(4)* * *
(c) Authorized Activities.--
(1) In general.-- * * *
(2) Examples of authorized activities.--The
activities described in paragraph (1) may include--
(A) * * *
(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;
* * * * * * *
(F) tutoring, counseling, and student service
programs designed to improve academic success;
(G) education or counseling services designed
to improve the financial literacy and economic
literacy of students or parents of students;
[(G)] (H) funds management, administrative
management, and acquisition of equipment for
use in strengthening funds management;
[(H)] (I) joint use of facilities, such as
laboratories and libraries;
[(I)] (J) establishing or improving a
development office to strengthen or improve
contributions from alumni and the private
sector;
[(J)] (K) establishing or enhancing a program
of teacher education designed to qualify
students to teach in elementary schools or
secondary schools, with a particular emphasis
on teaching Indian children and youth, that
shall include, as part of such program,
preparation for teacher certification;
[(K)] (L) establishing community outreach
programs that encourage Indian elementary
school and secondary school students to develop
the academic skills and the interest to pursue
postsecondary education; [and]
(M) developing or improving facilities for
Internet use or other distance learning
academic instruction capabilities; and
[(L)] (N) other activities proposed in the
application sub-
(i) contribute to carrying out the
activities described in [subparagraphs
(A) through (K)] subparagraphs (A)
through (M); and
(ii) are approved by the Secretary as
part of the review and acceptance of
such application.
* * * * * * *
[(d) Application Process.--
[(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.--Any Tribal College or University
desiring to receive assistance under this section shall
submit an application to the Secretary at such time,
and in such manner, as the Secretary may by regulation
reasonably require. The Secretary shall, to the extent
possible, prescribe a simplified and streamlined format
for such applications that takes into account the
limited number of institutions that are eligible for
assistance under this section. Each such application
shall include--
[(A) a 5-year plan for improving the
assistance provided by the Tribal College or
University to Indian students, increasing the
rates at which Indian secondary school students
enroll in higher education, and increasing
overall postsecondary retention rates for
Indian students; and
[(B) such enrollment data and other
information and assurances as the Secretary may
require to demonstrate compliance with
paragraph (1).
(3) Special Rules.--
[(A) Eligibility.--No Tribal College or
University that receives funds under this
section shall concurrently receive funds under
other provisions of this part or part B.
[(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) 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, and in such manner, 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.
(3) 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 1-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), the Secretary shall
give preference to eligible
institutions that have not yet received
an award under this section.
(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 College or
University Assistance Act of
1978 (25 U.S.C. 1801(a)) of the
Tribal Colleges and
Universities; and
(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.--For the purposes of
this part, no Tribal College or University that
is eligible for and receives funds under this
section shall concurrently receive funds under
other provisions of this part or part B.
(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.
* * * * * * *
SEC. 317. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.
(a) Program Authorized.-- * * *
(b) Definitions.-- * * *
* * * * * * *
(c) Authorized Activities.--
(1) * * *
(2) Examples of authorized activities.--Such programs
may include--
(A) * * *
(B) * * *
(C) * * *
(D) * * *
(E) * * *
(F) * * *
(G) joint use of facilities such as
laboratories and libraries; [and]
(H) academic tutoring and counseling programs
and student support services[.]; and
(I) education or counseling services designed
to improve the financial literacy and economic
literacy of students or the students' parents.
* * * * * * *
SEC. 318. 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.
(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
that, at the time of application--
(A) has an enrollment of undergraduate
students that is not less than 10 percent
Native American students; and
(B) 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.
(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; and
(H) academic tutoring and counseling programs
and student support services.
(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 by regulation
require.
(2) Applications.--
(A) Permission 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,
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 5-year plan for improving the
assistance provided by the Native
American-serving, nontribal institution
to Native Americans; and
(ii) such other information and
assurances as the Secretary may
require.
(3) Special rules.--
(A) Eligibility.--No Native American-serving,
nontribal institution that receives funds under
this section shall concurrently receive funds
under other provisions of this part or part B.
(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.
* * * * * * *
SEC. 322. DEFINITIONS.
For the purpose of this part:
(1) * * *
(2) * * *
(3) * * *
(4) The term ``professional and academic areas in
which Blacks are underrepresented'' shall be determined
by the Secretary in consultation with the Commissioner
for Education Statistics and the Commissioner of the
Bureau of Labor Statistics, on the basis of the most
recent available satisfactory data, as professional and
academic areas in which the percentage of Black
Americans who have been educated, trained, and employed
is less than the percentage of Blacks in the general
population.
SEC. 323. GRANTS TO INSTITUTIONS.
(a) General Authorization; Uses of Funds.--From amounts
available under section [360(a)(2)] 399(a)(2) in any fiscal
year the Secretary shall make grants (under section 324) to
institutions which have applications approved by the Secretary
(under section 325) for any of the following uses:
(1) * * *
* * * * * * *
(6) * * *
(7) Education or counseling services designed to
improve the financial literacy and economic literacy of
students or the students' parents.
[(7)] (8) Funds and administrative management, and
acquisition of equipment for use in strengthening funds
management.
[(8)[ (9) Joint use of facilities, such as
laboratories and libraries.
[(9)] (10) Establishing or improving a development
office to strengthen or improve contributions from
alumni and the private sector.
[(10)] (11) Establishing or enhancing a program of
teacher education designed to qualify students to teach
in a public elementary or secondary school in the State
that shall include, as part of such program,
preparation for teacher certification.
[(11)] (12) Establishing community outreach programs
which will encourage elementary and secondary students
to develop the academic skills and the interest to
pursue postsecondary education.
[(12)] (13) Other activities proposed in the
application submitted pursuant to section 325 that--
* * * * * * *
SEC. 324. ALLOWMENTS TO INSTITUTIONS.
(a) Allotment; Pell Grant Basis.-- * * *
* * * * * * *
(g) Special Rule for Certain District of Columbia Eligible
Institutions.-- * * *
(h) Special Rule on Eligibility.--Notwithstanding any other
provision of this section, a part B institution shall not
receive an allotment under this section unless the part B
institution provides, on an annual basis, data indicating that
the part B institution--
(1) enrolled Federal Pell Grant recipients in the
preceding academic year;
(2) in the preceding academic year, has graduated
students from a program of academic study that is
licensed or accredited by a nationally recognized
accrediting agency or association recognized by the
Secretary pursuant to part H of title IV where
appropriate; and
(3) where appropriate, has graduated students who,
within the past 5 years, enrolled in graduate or
professional school.
* * * * * * *
SEC. 326. PROFESSIONAL OR GRADUATE INSTITUTIONS.
(a) General Authorization.-- * * *
* * * * * * *
(b) * * *
(c) Uses of Funds.--A grant under this section may be used
for--
(1) * * *
(2) construction, maintenance, renovation, and
improvement in classroom, library, laboratory, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services, and for the acquisition and development of
real property that is adjacent to the campus for such
construction, maintenance, renovation, or improvement;
(3) * * *
(4) * * *
(5) tutoring, counseling, and student service
programs designed to improve academic success;
(6) education or counseling services designed to
improve the financial literacy and economic literacy of
students or the students' parents;
[(5)] (7) [establish or improve] establishing or
improving a development office to strengthen and
increase contributions from alumni and the private
sector;
[(6)] (8) [assist] assisting in the establishment or
maintenance of an institutional endowment to facilitate
financial independence pursuant to section 331; [and]
[(7)] (9) funds and administrative management, and
the acquisition of equipment, including software, for
use in strengthening funds management and management
information systems[.]; and
(10) 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.
(d) * * *
* * * * * * *
(e) Eligibility.--
(1) In general.--Independent professional or graduate
institutions and programs eligible for grants under
subsection (a) are the following:
(A) * * *
* * * * * * *
(Q) Norfolk Statement University qualified
graduate programs; [and]
(R) Tennessee State University qualified
graduate programs[.];
(S) Alabama State University qualified
graduate program;
(T) Coppin State University qualified
graduate program; and
(U) Prairie View A & M University qualified
graduate program.
(2) Qualified graduate program.--(A) For the purposes
of this section, the term ``qualified graduate
program'' means a graduate or professional program that
provides a program of instruction in law or in the
physical or natural sciences, engineering, mathematics,
or other scientific discipline in which African
Americans are underrepresented and has students
enrolled in such program at the time of application for
a grant under this section.
(B) * * *
(3) Special rule.--Institutions that were awarded
grants under this section prior to October 1, [1998]
2006, shall continue to receive such grants, subject to
the availability of appropriated funds, regardless of
the eligibility of the institutions described in
subparagraphs [(Q) and (R)] (S), (T), and (U) of
paragraph (1).
(4) * * *
(5) * * *
(f) Funding Rule.--Subject to subsection (g), of the amount
appropriated to carry out this section for any fiscal year--
(1) the first $26,600,000 (or any lesser amount
appropriated) shall be available only for the purposes
of making grants to institutions or programs described
in subparagraphs (A) through [(P)] (R) of subsection
(e)(1);
(2) * * *
(3) any amount in excess of $28,600,000, shall be
made available to each of the institutions or programs
identified in subparagraphs (A) through (R) pursuant to
a formula developed by the Secretary that uses the
following elements:
[(A) The ability of the institution to match
Federal funds with non-Federal funds.
(B) The number of students enrolled in the
programs for which the eligible institution
received funding under this section in the
previous year.]
(A) The amount of non-Federal funds for the
fiscal year for which the determination is made
that the institution or program listed in
subsection (e)--
(i) allocates from institutional
resources;
(ii) secures from non-Federal
sources, including amounts appropriated
by the State and amounts from the
private sector; and
(iii) will utilize to match Federal
funds awarded for the fiscal year for
which the determination is made under
this section to the institution or
program.
(B) The number of students enrolled in the
qualified graduate programs of the eligible
institution or program, for which the
institution or program received and allocated
funding under this section in the preceding
year.
(C) The average cost of education per
student, for all full-time graduate or
professional students [(or the equivalent)
enrolled in the eligible professional or
graduate school, or for doctoral students
enrolled in the qualified graduate programs.]
enrolled in the qualified programs or
institutions listed in paragraph (1).
(D) The number of [students] Black American
students or minority students in the previous
year who received their first professional or
doctoral degree from the programs for which the
eligible [institution] institution or program
received funding under this section in the
previous year.
[(E) The contribution, on a percent basis, of
the programs for which the institution is
eligible to receive funds under this section to
the total number of African Americans receiving
graduate or professional degrees in the
professions or disciplines related to the
programs for the previous year.]
(E) The percentage that the total number of
Black American students and minority students
who receive their first professional, master's,
or doctoral degrees from the institution or
program in the academic year preceding the
academic year for which the determination is
made, represents of the total number of Black
American students and minority students in the
United States who receive their first
professional, master's, or doctoral degrees in
the professions or disciplines related to the
course of study at such institution or program,
respectively, in the preceding academic year.
(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and
(3) of subsection (f), no institution or qualified program
identified in subsection (e)(1) that received a grant for
fiscal year 1998 and that is eligible to receive a grant in a
subsequent fiscal year shall receive a grant amount in any such
subsequent fiscal year that is less than the grant amount
received for fiscal year [1998] 2006, unless the amount
appropriated is not sufficient to provide such grant amounts to
all such institutions and programs, or the institution cannot
provide sufficient matching funds to meet the requirements of
this section.
* * * * * * *
SEC. 342. DEFINITIONS.
For the purpose of this part:
(1) * * *
(2) * * *
(3) * * *
(4) * * *
(5) * * *
(A) * * *
(B) * * *
(C) instructional equipment technology[,,],
research instrumentation, and any capital
equipment or fixture related to facilities
described in subparagraph (A);
* * * * * * *
SEC. 343. FEDERAL INSURANCE FOR BONDS.
(a) General Rule.-- * * *
* * * * * * *
(d) Full Faith and Credit Provisions.-- * * *
(e) Sale of Qualified Bonds.--Notwithstanding any other
provision of law, a qualified bond guaranteed under this part
may be sold to any party that offers terms that the Secretary
determines are in the best interest of the eligible
institution.
* * * * * * *
SEC. 365. DEFINITIONS.
For the purpose of this part--
(1) * * *
* * * * * * *
(9) The term ``special projects'' means--
(A) a special project grant to a minority
institution which [support] supports activities
that--
* * * * * * *
Part F--General Provisions
SEC. 391. APPLICATION FOR ASSISTANCE.
(a) Applications.--
(1) Applications required.-- * * *
* * * * * * *
(b) Contents.--An institution, in its application for a
grant, shall--
(1) * * *
* * * * * * *
(7) describe in a comprehensive manner any proposed
project for which funds are sought under the
application and include--
(A) * * *
(B) * * *
(C) * * *
(D) * * *
(E) a detailed description of any activity
which involves the expenditure of more than
$25,000 as identified in the budget referred to
in [subparagraph (E)] subparagraph (D); and
* * * * * * *
SEC. 392. WAIVER AUTHORITY AND REPORTING REQUIREMENT.
(a) Waiver Requirements; Need-Based Assistance Students.--
The Secretary may waive the requirements set forth in section
312(b)(1)(A) in the case of an institution--
(1) * * *
* * * * * * *
(b) Waiver Determinations, Expenditures.--(1) * * *
(2) The Secretary shall submit to the Congress every
other year a report concerning the institutions which,
although not satisfying the criterion contained in
section 312(b)(1)(B), have been determined to be
[eligible institutions under part A institutions]
eligible institutions under part A which enroll
significant numbers of Black American, Hispanic, Native
American, Asian American, or Native Hawaiian students
under part A, as the case may be. Such report shall--
* * * * * * *
SEC. 396. LIMITATIONS.
The funds appropriated under [360] 399 may not be used--
* * * * * * *
SEC. 399. AUTHORIZATIONS OF APPROPRIATIONS.
[(a) Authorizations.--
[(1) Part a.--(A) There are authorized to be
appropriated to carry out part A, $135,000,000 (other
than section 316) for fiscal year 1999, and such sums
as may be necessary for each of the 4 succeeding fiscal
years.
[(B) There are authorized to be appropriated to carry
out section 316, $10,000,000 for fiscal year 1999 and
such sums as may be necessary for each of the 4
succeeding fiscal years.
[(C) There are authorized to be appropriated to carry
out section 317, $5,000,000 for fiscal year 1999 and
such sums as may be necessary for each of the 4
succeeding fiscal years.
[(2) Part b.--(A) There are authorized to be
appropriated to carry out part B (other than section
326), $135,000,000 for fiscal year 1999, and such sums
as may be necessary for each of the 4 succeeding fiscal
years.
[(B) There are authorized to be appropriated to carry
out section 326, $35,000,000 for fiscal year 1999, and
such sums as may be necessary for each of the 4
succeeding fiscal years.
[(3) Part c.--There are authorized to be appropriated
to carry out part C, $10,000,000 for fiscal year 1999,
and such sums as may be necessary for each of the 4
succeeding fiscal years.
[(4) Part d.--(A) There are authorized to be
appropriated to carry out part D (other than section
345(7), but including section 347), $110,000,000 for
fiscal year 1999, and such sums as may be necessary for
each of the 4 succeeding fiscal years.
[(B) There are authorized to be appropriated to carry
out section 345(7), such sums as may be necessary for
fiscal year 1999 and each of the 4 succeeding fiscal
years.
[(5) Part e.--There are authorized to be appropriated
to carry out part E, $10,000,000 for fiscal year 1999,
and such sums as may be necessary for each of the 4
succeeding fiscal years.]
(a) Authorizations.--
(1) Part a.--(A) There are authorized to be
appropriated to carry out part A (other than section
316) such sums as may be necessary for fiscal year 2006
and each of the 5 succeeding fiscal years.
(B) There are authorized to be appropriated to carry
out section 316 such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal
years.
(C) There are authorized to be appropriated to carry
out section 317 such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal
years.
(D) There are authorized to be appropriated to carry
out section 318 such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal
years.
(2) Part b.--(A) There are authorized to be
appropriated to carry out part B (other than section
326) such sums as may be necessary for fiscal year 2006
and each of the 5 succeeding fiscal years.
(B) There are authorized to be appropriated to carry
out section 326 such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal
years.
(3) Part c.--There are authorized to be appropriated
to carry out part C such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal
years.
(4) Part d.--(A) There are authorized to be
appropriated to carry out part D (other than section
345(7), but including section 347) such sums as may be
necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
(B) There are authorized to be appropriated to carry
out section 345(7) such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal
years.
(5) Part e.--There are authorized to be appropriated
to carry out part E such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal
years.
(b) Use of Multiple Year Awards.--In the event of a
multiple year award to any institution under this title, the
Secretary shall make funds available for such award from funds
appropriated for this title for the fiscal year in which such
funds are to be used by the recipient.
(c) Minimum Grant Amount.--The minimum amount of a grant
under this title shall be $200,000.
* * * * * * *
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
SEC. 400. STATEMENT OF PURPOSE; PROGRAM AUTHORIZATION.
(a) Purpose.-- * * *
* * * * * * *
Subpart 1--Federal Pell Grants
SEC. 401. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS; APPLICATIONS.
(a) Program Authority and Method of Distribution.--(1) For
each fiscal year through fiscal year [2004] 2012, the Secretary
shall pay to each eligible institution such sums as may be
necessary to pay to each eligible student (defined in
accordance with section 484) for each academic year during
which that student is in attendance at an institution of higher
education, as an undergraduate, a Federal Pell Grant in the
amount for which that student is eligible, as determined
pursuant to subsection (b). Not less than 85 percent of such
sums shall be advanced to eligible institutions prior to the
start of each payment period and shall be based upon an amount
requested by the institution as needed to pay eligible students
until such time as the Secretary determines and publishes in
the Federal Register with an opportunity for comment, an
alternative payment system that provides payments to
institutions in an accurate and timely manner[,,], except that
this sentence shall not be construed to limit the authority of
the Secretary to place an institution on a reimbursement system
of payment.
* * * * * * *
(b) Purpose and Amount of Grants.--(1) * * *
[(2)(A) The amount of the Federal Pell Grant for a student
eligible under this part shall be--
[(i) $4,500 for academic year 1999-2000;
[(ii) $4,800 for academic year 2000-2001;
[(iii) $5,100 for academic year 2001-2002;
[(iv) $5,400 for academic year 2002-2003; and
[(v) $5,800 for academic year 2003-2004,
[less an amount equal to the amount determined to be the
expected family contribution with respect to that student for
that year.]
(2)(A) the amount of the Federal Pell Grant for a student
eligible under this part shall be--
(i) $5,100 for academic year 2006-2007;
(ii) $5,400 for academic year 2007-2008;
(iii) $5,700 for academic year 2008-2009;
(iv) $6,000 for academic year 2009-2010; and
(v) $6,300 for academic year 2010-2011,
less an amount equal to the amount determined to be the
expected family contribution with respect to that student for
that year.
* * * * * * *
[(3)(A) For any academic year for which an appropriation
Act provides a maximum basic grant in an amount in excess of
$2,700, the amount of a student's basic grant shall equal
$2,700 plus--
[(i) one-half of the amount by which such maximum
basic grant exceeds $2,700; plus
[(ii) the lesser of--
[(I) the remaining one-half of such excess;
or
[(II) the sum of the student's tuition and,
if the student has dependent care expenses (as
described in section 472(8)) or disability-
related expenses (as described in section
472(9)), an allowance determined by the
institution for such expenses.
[(B) An institution that charged only fees in lieu of
tuition as of October 1, 1998, may include in the institution's
determination of tuition charged, fees that would normally
constitute tuition.]
[(4)](3) No Federal Pell Grant under this subpart shall
exceed the difference between the expected family contribution
for a student and the cost of attendance (as defined in section
472) at the institution at which that student is in attendance.
If, with respect to any student, it is determined that the
amount of a Federal Pell Grant plus the amount of the expected
family contribution for that student exceeds the cost of
attendance for that year, the amount of the Federal Pell Grant
shall be reduced until the combination of expected family
contribution and the amount of the Federal Pell Grant does not
exceed the cost of attendance at such institution.
[(5)](4) No Federal Pell Grant shall be awarded to a
student under this subpart if the amount of that grant for that
student as determined under this subsection for any academic
year is less than [$400, except that a student who is eligible
for a Federal Pell Grant that is equal to or greater than $200
but less than $400 shall be awarded a Federal Pell Grant of
$400.] 10 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 5 percent of such
level but less than 10 percent of such level shall be awarded a
Federal Pell grant in the amount of 10 percent of such level.
[(6)(A) The Secretary may allow, on a case-by-case basis, a
student to receive 2 Pell grants during a single award year,
if--
[(i) the student is enrolled full-time in an
associate or baccalaureate degree program of study that
is 2 years or longer at an eligible institution that is
computed in credit hours; and
[(ii) the student completes course work toward
completion of an associate or baccalaureate degree that
exceeds the requirements for a full academic year as
defined by the institution.
[(B) The Secretary shall promulgate regulations
implementing this paragraph.
(5) In the case of a student who is enrolled, on at least a
half-time basis and for a period of more than 1 academic year
in a 2-year or 4-year program of instruction for which an
institution of higher education awards an associate or
baccalaureate degree, the Secretary shall allow such student to
receive not more than 2 Federal Pell Grants during a single
award year to permit such student to accelerate the student's
progress toward a degree by attending additional sessions. In
the case of a student receiving more than 1 Federal Pell Grant
in a single award year, 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
Appropriation Act for such award year.
[(7)](6) Notwithstanding any other provision of this
subpart, the Secretary shall allow the amount of the Federal
Pell Grant to be exceeded for students participating in a
program of study abroad approved for credit by the institution
at which the student is enrolled when the reasonable costs of
such program are greater than the cost of attendance at the
student's home institution, except that the amount of such
Federal Pell Grant in any fiscal year shall not exceed the
grant level specified in the appropriate Appropriation Act for
this subpart of such year. If the preceding sentence applies,
the financial aid administrator at the home institution may use
the cost of the study aboard program, rather than the home
institution's cost, to determine the cost of attendance of the
student.
[(8)](7) No Federal Pell Grant shall be awarded under
this subpart to any individual who is incarcerated in any
Federal or State penal institution.
(c) Period of Eligibility for Grants.--(1) * * *.
* * * * * * *
(5) The period of time during which a student may receive
Federal Pell Grants shall not exceed 18 semesters, or an
equivalent period of time as determined by the Secretary
pursuant to regulations, which period shall--
(A) be determined without regard to whether the
student is enrolled on a full-time basis during any
portion of the period of time; and
(B) include any period of time for which the student
received a Federal Pell Grant prior to the date of
enactment of the Higher Education Amendments of 2005.
* * * * * * *
(f) Calculation of Eligibility.--(1) * * *
* * * * * * *
(3) Each contractor processing applications for awards
under this subpart shall for each academic year after academic
year 1986-1987 prepare and submit a report to the Secretary on
the correctness of the computations of amount of the expected
family contribution, and on the accuracy of the questions on
the application form under this subpart for the previous
academic year for which the contractor is responsible. The
Secretary shall transmit the report, together with the comments
and recommendations of the Secretary, [to the Committee on
Appropriations and the Committee on Labor and Human Resources
of the Senate and the Committee on Appropriations and the
Committee on Education and Workforce of the House of
Representatives] to the Committee on Appropriations of the
Senate, the Committee on Appropriations of the House of
Representatives, and the authorizing committees.
SEC. 401A. PROVISIONAL GRANT ASSISTANCE PROGRAM.
(a) Grants.--
(1) In general.--From amounts appropriated under
subsection (e) for a fiscal year and subject to
subsection (b), the Secretary shall award grants to
students (which shall be known as ``ProGAP awards'') in
the same manner as the Secretary awards grants to
students under section 401, except that--
(A) at the beginning of each award year, the
Secretary shall establish a maximum and minimum
award level based on amounts made available
under subsection (e);
(B) the Secretary shall only award grants
under this section to students eligible for a
grant under section 401 for the award year; and
(C) when determining eligibility for the
awards, the Secretary shall consider only those
students who are eligible for a grant under
section 401, as of June 30 of the award year
for which the determination is made.
(2) Students with the greatest need.--The Secretary
shall ensure grants are awarded under this section to
students with the greatest need as determined in
accordance with section 471.
(b) Cost of Attendance Limitation.--A grant awarded under
this section for an award year shall be awarded in an amount
that does not exceed--
(1) the student's cost of attendance for the award
year; less
(2) an amount equal to the expected family
contribution for that student for the award year.
(c) Supplement Not Supplant.--Grants awarded from funds
made available under subsection (e) shall be used to
supplement, and not supplant, other Federal, State, or
institutional grant funds.
(d) Use of Excess Funds.--
(1) 15 percent or less.--If, at the end of a fiscal
year, the funds available for making grant payments
under this section exceed the amount necessary to make
the grant payments required under this section to
eligible students by 15 percent or less, then all of
the excess funds shall remain available for making
grant payments under this section during the next
succeeding fiscal year.
(2) More than 15 percent.--If, at the end of a fiscal
year, the funds available for making grant payments
under this section exceed the amount necessary to make
the grant payments required under this section to
eligible students by more than 15 percent, then all of
such funds shall remain available for making such grant
payments but grant payments may be made under this
paragraph only with respect to awards for that fiscal
year.
(e) Authorization and Appropriation of Funds.--There are
authorized to be appropriated, and there are appropriated, out
of any money in the Treasury not otherwise appropriated, for
the Department of Education to carry out this section and
section 401B--
(1) $1,897,000,000 for fiscal year 2006;
(2) $1,901,000,000 for fiscal year 2007;
(3) $1,899,000,000 for fiscal year 2008;
(4) $1,898,000,000 for fiscal year 2009; and
(5) $1,897,000,000 for fiscal year 2010.
(f) Sunset Provision.--This section shall be effective with
respect to amounts appropriated for fiscal year 2006 and each
of the 4 succeeding fiscal years.
* * * * * * *
SEC. 401B. NATIONAL SMART GRANTS.
(a) Findings.--Congress makes the following findings:
(1) If the United States is to remain a world leader
in the global economy, its college students must have
the training they need to compete for the best jobs of
the 21st century.
(2) The United States intelligence community faces
major shortages in foreign languages critical
tonational security, and will also require major incentives to fill
projected workforce needs.
(3) Increasingly, the best jobs of the 21st century
will require baccalaureate degrees in the sciences,
mathematics, technology, engineering, and foreign
languages critical to national security, or be
generated by people who have such degrees.
(4) Congress should establish a National Science and
Mathematics Access to Retain Talent (SMART) grant
program to meet the goals described in paragraphs (1)
through (3).
(b) Purpose.--The purpose of this section is to increase the
number of postsecondary students from low-income backgrounds
who are enrolled in studies leading to baccalaureate degrees in
physical, life, or computer sciences, mathematics, technology,
engineering, and foreign languages critical to national
security.
(c) Grants Authorized.--From amounts appropriated under
section 401A(c) for a fiscal year, the Secretary shall award
grants to eligible students to assist the eligible students in
paying their college education expenses.
(d) Designation.--A grant under this section shall be known
as a ``National Science and Mathematics Access to Retain Talent
Grant'' or a ``National SMART Grant''.
(e) Definition of Eligible Student.--In this section the term
``eligible student'' means a student who, for the academic year
for which the determination is made--
(1) is eligible for a Federal Pell Grant; and
(2) is in the student's 3rd or 4th year at an
institution of higher education majoring in--
(A) mathematics, science, technology, or
engineering (as determined by the Secretary
pursuant to regulations); or
(B) a foreign language that the Secretary, in
consultation with the Director of National
Intelligence, determines is critical to the
national security of the United States.
(f) Grant Amount.--The Secretary shall award a grant under
this section in an amount that does not exceed $1,500 for an
academic year.
(g) Funding Rule.--The Secretary shall use not more than
$450,000,000 of the funds appropriated under section 401A(c)
for each of the fiscal years 2006 through 2010 to carry out
this section.
(h) Unobligated Funds Available for Federal Grant
Assistance.--The Secretary shall make any funds made available
under subsection (g) for a fiscal year that remain unobligated
at the end of the fiscal year available to carry out section
401A.
(i) Matching Assistance.--An institution of higher education
may, from funds provided from private sources, provide
additional assistance to a student receiving a grant under this
section, except that the total assistance provided under this
title to a student shall not exceed the student's cost of
attendance.
* * * * * * *
Subpart 2--Federal Early Outreach and Student Service Programs
CHAPTER 1--FEDERAL TRIO PROGRAMS
SEC. 402A. PROGRAM AUTHORITY; AUTHORIZATION OF APPROPRIATIONS.
(a) Grants and Contracts Authorized.-- * * *
(b) Recipients, Duration, and Size.--
(1) Recipients.-- * * *
(2) Duration.--Grants or contracts made under this
chapter shall be awarded for a period of [4] 5 years,
except that--
[(A) the Secretary shall award such grants or
contracts for 5 years to applicants whose peer
review scores were in the highest 10 percent of
scores of all applicants receiving grants or
contracts in each program competition for the
same award year;]
[(B)] (A) grants made under section 402G
shall be awarded for a period of 2 years; and
[(C)] (B) grants under section 402H shall be
awarded for a period determined by the
Secretary.
[(3) Minimum grants.--Unless the institution or
agency requests a smaller amount, individual grants
under this chapter shall be no less than--
[(A) $170,000 for programs authorized by
sections 402D and 402G;
[(B) $180,000 for programs authorized by
sections 402B and 402F; and
[(C) $190,000 for programs authorized by
sections 402C and 402E.]
(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.
(c) Procedures for Awarding Grants and Contracts.--
(1) Application requirements.-- * * *
(2) Prior experience.--In making grants under this
chapter, the Secretary shall consider each applicant's
prior experience of [service delivery] high quality
service delivery, as determined under subsection (f),
under the particular program for which funds are
sought. The level of consideration given the factor of
prior experience shall not vary from the level of
consideration given such factor during fiscal years
1994 through 1997, except that grants made under
section 402H shall not be given prior experience
consideration.
(3) Order of awards; program fraud.--(A) * * *
(B) The Secretary [is not required to] shall not
provide assistance to a program otherwise eligible for
assistance under this chapter, if the Secretary has
determined that such program has involved the
fraudulent use of funds under this chapter.
(4) Peer review process.--(A) * * *
* * * * * * *
(5) Number of applications for grants and
contracts.--The Secretary shall not limit the number of
applications submitted by an entity under any program
authorized under this chapter if the additional
applications describe programs serving different
populations or [campuses] different campuses.
* * * * * * *
(e) Documentation of Status as a Low-Income Individual.--
(Except in the case of an independent student, as defined in
section 480(d), documentation of an individual's status
pursuant to subsection [(g)(2)] (h)(4) shall be made by
providing the Secretary with--
(A) * * *
* * * * * * *
(2) In the case of an independent student, as defined in
section 480(d), documentation of an individual's status
pursuant to subsection [(g)(2)] (h)(4) shall be made by
providing the Secretary with--
(A) * * *
* * * * * * *
(f) Outcome Criteria.--
(1) In general.--The Secretary, by regulation, shall
establish outcome criteria for measuring, annually and
for longer periods, the quality and effectiveness of
programs authorized under this chapter.
(2) Use for prior experience determination.--The
outcome criteria under paragraph (1) shall be used to
evaluate the programs provided by a recipient of a
grant under this chapter, and the Secretary shall
determine an eligible entity's prior experience of high
quality service delivery, as required in subsection
(c)(2), based on the outcome criteria.
(3) Consideration of relevant data.--The outcome
criteria under this subsection shall take into account
data pertaining to secondary school completion,
postsecondary education enrollment, and postsecondary
education completion for 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.
(4) Contents of outcome criteria.--The outcome
criteria shall include the following:
(A) For programs authorized under section
402B, whether 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; and
(iv) the enrollment of such students
in an institution of higher education.
(B) For programs authorized under section
402C, whether the eligible entity met or
exceeded its 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; and
(v) the enrollment of such students
in an institution of higher education.
(C) For programs authorized under section
402D--
(i) whether 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 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 the entity 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) whether 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) whether the applicant met or
exceeded the entity's objectives
regarding suchstudents remaining in
good academic standing.
(D) For programs authorized under section
402E, whether the entity met or exceeded the
entity's objectives for such program
regarding--
(i) the delivery of service to a
total number of students, 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 attainment of doctoral
degrees by former program participants.
(E) For programs authorized under section
402F, whether 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, 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.
[(f)] (g) Authorization of Appropriations.--For the purpose
of making grants and contracts under this chapter, there are
authorized to be appropriated [$700,000,000 for fiscal year
1999, and such sums as may be necessary for each of the 4
succeeding fiscal years.] such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal years. Of
the amount appropriated under this chapter, the Secretary may
use no more than \1/2\ of 1 percent of such amount to obtain
additional qualified readers and additional staff to review
applications, to increase the level of oversight monitoring, to
support impact studies, program assessments and reviews, and to
provide technical assistance to potential applicants and
current grantees. In expending these funds, the Secretary shall
give priority to the additional administrative requirements
provided in the Higher Education Amendments of 1992, to
outreach activities, and to obtaining additional readers. [The
Secretary shall report to Congress by October 1, 1994, on the
use of these funds.]
[(g)] (h) Definitions.--For the purpose of this chapter:
(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, with respect
to whom an eligible entity desires to serve through an
application for a grant under this chapter, 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.
[(1)] (3) First generation college student.--The term
``first generation college student'' means--
(A) * * *
(B) * * *
[(2)] (4) Low-income individual.--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.
[(3)] (5) Veteran eligibility.--No veteran shall be
deemed ineligible to participate in any program under
this chapter by reason of such individual's age who--
(A) served on active duty for a period of
more than 180 days, any part of which occurred
after January 31, 1955, and was discharged or
released therefrom under conditions other than
dishonorable; [or]
(B) served on active duty after January 31,
1955, and was discharged or released therefrom
because of a service connected disability[.];
or
``(C) was a member of a reserve component of
the Armed Forces called to active duty for a
period of more than 180 days.
[(4)] (6) Waiver.--The Secretary may waive the
service requirements in [subparagraph (A) or (B) of
paragraph (3)] subparagraph (A), (B), or (C) of
paragraph (5) if the Secretary determines the
application of the service requirements to a veteran
will defeat the purpose of a program under this
chapter.
* * * * * * *
SEC. 402B. TALENT SEARCH.
(a) Program Authority.--The Secretary shall carry out a
program to be known as talent search which shall be designed--
(1) [to identify qualified youths with potential for
education at the postsecondary level and to encourage
such youths] to encourage eligible youths to complete
secondary school and to undertake a program of
postsecondary education;
(2) to publicize the availability of, and facilitate
the application for, student financial assistance
available to persons who pursue a program of
postsecondary education; and
(3) to encourage persons who have not completed
programs of education at the secondary or postsecondary
level[, but who have the ability to complete such
programs, to reenter] to enter or reenter, and complete
such programs.
[(b) Permissible Services.--Any talent search project
assisted under this chapter may provide services such as--
[(1) academic advice and assistance in secondary
school and college course selection;
[(2) assistance in completing college admission and
financial aid applications;
[(3) assistance in preparing for college entrance
examinations;
[(4) guidance on and assistance in secondary school
reentry, entry to general educational development (GED)
programs, other alternative education programs for
secondary school dropouts, or postsecondary education;
[(5) personal and career counseling, or activities
designed to acquaint individuals from disadvantaged
backgrounds with careers in which the individuals are
particularly underrepresented;
[(6) tutorial services;
[(7) exposure to college campuses as well as cultural
events, academic programs and other sites or activities
no usually available to disadvantaged youth;
[(8) workshops and counseling for families of
students served;
[(9) 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
[(10) programs and activities as described in
paragraphs (1) through (9) which are specially designed
for students of limited English proficiency.]
(b) Required Services.--Any project assisted under this
section shall provide--
(1) academic tutoring, or connections to high quality
academic tutoring services, 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 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 both the full range of Federal
student financial aid programs (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 their parents, including financial planning
for postsecondary education.
(c) Permissible Services.--Any project assisted under this
section may provide services such as--
(1) personal and career counseling or activities;
(2) information and activities designed to acquaint
youths with the range of career options available to
the youths;
(3) 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;
(4) workshops and counseling for families of students
served;
(5) 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
(6) programs and activities as described in
subsection (b) or paragraphs (1) through (5) of this
subsection that are specially designed for students who
are limited English proficient, 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)), or students who are in foster care or are
aging out of the foster care system.
[(c)] (d) Requirements for Approval of Applications.--In
approving applications for [talent search projects under this
chapter] projects under this section for any fiscal year the
Secretary shall--* * *
* * * * * * *
SEC. 402C. UPWARD BOUND.
(a) Program Authority.--* * *
[(b) Permissible Services.--Any upward bound project
assisted under this chapter may provide services such as--
[(1) instruction in reading, writing, study skills,
mathematics, and other subjects necessary for success
beyond secondary school;
[(2) counseling and workshops;
[(3) academic advice and assistance in secondary
school course selection;
[(4) tutorial services;
[(5) exposure to cultural events, academic programs,
and other activities not usually available to
disadvantaged youth;
[(6) activities designed to acquaint youths
participating in the project with the range of career
options available to them;
[(7) instruction designed to prepare youths
participating in the project for careers in which
persons from disadvantaged backgrounds are particularly
underrepresented;
[(8) on-campus residential programs;
[(9) mentoring programs involving elementary or
secondary school teachers or counselors, faculty
members at institutions of higher education, students,
or any combination of such persons;
[(10) work-study positions where youth participating
in the project are exposed to careers requiring a
postsecondary degree;
[(11) special services to enable veterans to make the
transition to postsecondary education; and
[(12) programs and activities as described in
paragraphs (1) through (11) which are specially
designed for students of limited English proficiency.]
(b) Requiried 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 both the full range of Federal
student financial aid programs (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, including financial planning for
postsecondary education.
(c) [Required Services] Additional Required Services for
Multiple Year Grant Recipients.--Any [upward bound project
assisted under this chapter] project assisted under this
section which has received funding for two or more years shall
include, as part of the core curriculum in the next and
succeeding years, instruction in mathematics through
precalculus, laboratory science, foreign language, composition,
and literature.
(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 youths participating in the project with
the range of career options available to the youths;
(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 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 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)), or students who are
in foster care or are aging out of the foster care
system.
[(d)] (e) Requirements for Approval of Applications.--In
approving applications for [upward bound projects under this
chapter] projects under this section for any fiscal year, the
Secretary shall-- * * *
* * * * * * *
[(e)] (f) Maximum Stipends.--Youths participating in a
project proposed to be carried out under any application may be
paid stipends not in excess of $60 per month [during June,
July, and August] during the summer school recess, for a period
not to exceed 3 months, except that youth participating in a
work-study position under subsection [(b)(10)] (d)(5) may be
paid a stipend of $300 per month [during June, July, and
August] during the summer school recess, for a period not to
exceed 3 months. Youths participating in a project proposed to
be carried out under any application may be paid stipends not
in excess of $40 per month during the remaining period of the
year.
* * * * * * *
SEC. 402D. STUDENT SUPPORT SERVICES.
(a) Program Authority.--The Secretary shall carry out a
program to be known as student support services which shall be
designed--
(1) * * *
(2) to increase the transfer rates of eligible
students from 2-year to 4-year institutions; [and]
[(3) to foster an institutional climate supportive of
the success of low-income and first generation college
students and individuals with disabilities.]
(3) to foster an institutional climate supportive of
the success of low-income and first generation college
students, students with disabilities, students who are
limited English proficient, 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)), and students who are in foster care or
are aging out of the foster care system.
(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.
[(b) Permissible Services.--A student support services
project assisted under this chapter may provide services such
as--
[(1) instruction in reading, writing, study skills,
mathematics, and other subjects necessary for success
beyond secondary school;
[(2) personal counseling;
[(3) academic advice and assistance in course
selection;
[(4) tutorial services and counseling and peer
counseling;
[(5) exposure to cultural events and academic
programs not usually available to disadvantaged
students;
[(6) activities designed to acquaint students
participating in the project with the range of career
options available to them;
[(7) activities designed to assist students
participating in the project in securing admission and
financial assistance for enrollment in graduate and
professional programs;
[(8) activities designed to assist students currently
enrolled in 2-year institutions in securing admission
and financial assistance for enrollment in a four-year
program of postsecondary education;
[(9) mentoring programs involving faculty or upper
class students, or a combination thereof; and
[(10) programs and activities as described in
paragraphs (1) through (9) which are specially designed
for students of limited English proficiency.]
(b) Required Services.--A project assisted under this
section shall provide--
(1) academic tutoring 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 (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 securing college
admission and financial assistance for enrollment in
graduate and professional programs; and
(6) activities designed to assist students enrolled
in 2-year institutions of higher education in securing
admission and financial assistance for enrollment in a
4-year program of postsecondary education.
(c) Permissible Services.--A project assisted under this
section may provide services such as--
(1) consistent, individualized personal, career, and
academic counseling, provided by assigned counselors;
(2) information, activities, and instruction designed
to acquaint youths 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) activities designed to acquaint students
participating in the project with the range of career
options available to the students;
(5) mentoring programs involving faculty or upper
class students, or a combination thereof;
(6) securing temporary housing during breaks in the
academic year for 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 students who are in foster care or are aging out of
the foster care system; and
(7) programs and activities as described in
subsection (b) or paragraphs (1) through (5) of this
subsection that are specially designed for students who
are limited English proficient, 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)) or were formerly homeless children and youths,
or students who are in foster care or are aging out of
the foster care system.
[(c)] (d) Special Rule.--
(1) Use for student aid.--A recipient of a grant that
undertakes any of the permissible services identified
in [subsection (b)] subsection (c) may, in addition,
use such funds to provide grant aid to students. A
grant provided under this paragraph shall not exceed
the maximum appropriated Pell Grant or, be less than
the minimum appropriated Pell Grant, for the current
academic year. In making grants to students under this
subsection, an institution shall ensure that adequate
consultation takes place between the student support
service program office and the institution's financial
aid office.
* * * * * * *
[(d)] (e) Requirements for Approval of Applications.--In
approving applications for [student support services projects
under this chapter] projects under this section for any fiscal
year, the Secretary shall--
(1) * * *
* * * * * * *
SEC. 402E. POSTBACCALAUREATE ACHIEVEMENT PROGRAM AUTHORITY.
(a) Program Authority.-- * * *
(b) Required Services.--[A postbaccalaureate achievement
project assisted under this section may provide services such
as--] A project assisted under this section shall provide--
(1) * * *
* * * * * * *
(5) academic counseling; and
(6) activities designed to assist students
participating in the project in securing admission to
and financial assistance for enrollment in graduate
programs[;] .
[(7) mentoring programs involving faculty members at
institutions of higher education, students, or any
combination of such persons; and
[(8) exposure to cultural events and academic
programs not usually available to disadvantaged
students.]
(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 or their parents, 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.
[(c)] (d) Requirements.--In approving applications for
[postbaccalaureate achievement] projects assisted under this
section for any fiscal year, the Secretary shall require--
(1) * * *
* * * * * * *
[(d)] (e) Award Considerations.--In addition to such other
selection criteria as may be prescribed by regulations, the
Secretary shall consider in making awards to institutions under
this section--
(1) * * *
* * * * * * *
[(e)] (f) Maximum Stipends.--Students participating in
research under a [postbaccalaureate achievement project]
project under this section may receive an award that--
(1) * * *
* * * * * * *
[(f)] (g) Funding.--From amounts appropriated pursuant to
the authority of section [402A(f)] 402A(g), the Secretary shall
to the extent practicable, allocate funds for projects
authorized by this section in an amount which is not less than
$11,000,000 for each of the fiscal years [1993 through 1997]
2006 through 2010.
* * * * * * *
SEC. 402F. EDUCATIONAL OPPORTUNITY CENTERS.
(a) Program Authority; Services Provided.--* * *
(1) to provide information with respect to financial
and academic assistance available for individuals
desiring to pursue a program of postsecondary
education; [and]
(2) to provide assistance to such persons in applying
for admission to institutions at which a program of
postsecondary education is offered, including preparing
necessary applications for use by admissions and
financial aid officers[.] ; and
(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.
(b) Permissible Services.--An educational opportunity
center assisted under this section may provide services such
as--
(1) * * *
* * * * * * *
(4) * * *
(5) education or counseling services designed to
improve the financial literacy and economic literacy of
students;
[(5)] (6) guidance on secondary school reentry or
entry to a general educational development (GED)
program or other alternative education programs for
secondary school dropouts;
[(6)] (7) personal counseling;]
(7) individualized personal, career, and academic
counseling;
[(7)] (8) tutorial services;
[(8)] (9) career workshops and counseling;
[(9)] (10) mentoring programs involving elementary or
secondary school teachers, faculty members at
institutions of higher education, students, or any
combination of such persons; and
[(10)] (11) programs and activities as described in
paragraphs (1) through (9) which are specially designed
for students of limited English proficiency.]
(11) programs and activities as described in
paragraphs (1) through (10) that are specially designed
for students who are limited English proficient,
students with disabilities, or 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. 11434(a)), or programs and
activities for students who are in foster care or are
aging out of the foster care system.
* * * * * * *
SEC. 402G. STAFF DEVELOPMENT ACTIVITIES.
(a) Secretary's Authority.-- * * *
(b) Contents of Training Programs.-- * * *
(1) * * *
* * * * * * *
(3) The design and operation of model programs for
projects funded under this chapter, including
strategies for recruiting and serving 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)) and students who are
in foster care or are aging out of the foster care
system.
* * * * * * *
SEC. 402H. [EVALUATIONS AND GRANTS FOR PROJECT IMPROVEMENT AND
DISSEMINATION PARTNERSHIP PROJECTS.] REPORTS,
EVALUATIONS, AND GRANTS FOR PROJECT IMPROVEMENT AND
DISSEMINATION.
(a) Report to Congress.--At least once every 2-year period,
the Secretary shall prepare and submit to Congress a report on
the outcomes achieved by the programs authorized under this
chapter. Such report shall include a statement for the
preceding fiscal year specifying--
(1) the number of grants awarded during each fiscal
year, and the number of individuals served by the
programs carried out under such grants;
(2) the number of entities that received grants
during the fiscal year, including the number of
entities that--
(A) received a grant to carry out a program
under this chapter for the fiscal year; and
(B) had not received funding for that
particular program during the previous grant
cycle;
(3) a comparison of the number and percentage of
grant awards made to entities described in paragraph
(2), with the number of such entities funded through
discretionary grant competitions conducted by the
Secretary under this chapter in the 3 grant cycles
preceding the fiscal year;
(4) information on the number of individuals served
in each program authorized under this chapter; and
(5) information on the outcomes achieved by each
program authorized under this chapter, including the
outcome criteria described in section 402A(f) for each
program.
[(a)] (b) Evaluations.--
(1) In general.-- * * *
* * * * * * *
[(b)] (c) Grants.-- * * *
* * * * * * *
[(c)] (d) Results.--* * *
* * * * * * *
CHAPTER 2--GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
PROGRAMS
SEC. 404A. EARLY INTERVENTION AND COLLEGE AWARENESS PROGRAM AUTHORIZED.
[(a) Program Authorized.--The Secretary is authorized, in
accordance with the requirements of this chapter, to establish
a program that--
[(1) encourages eligible entities to provide or
maintain a guarantee to eligible low-income students
who obtain a secondary school diploma (or its
recognized equivalent), of the financial assistance
necessary to permit the students to attend an
institution of higher education; and
[(2) supports eligible entities in providing--
[(A) additional counseling, mentoring,
academic support, outreach, and supportive
services to elementary school, middle school,
and secondary school students who are at risk
of dropping out of school; and
[(B) information to students and their
parents about the advantages of obtaining a
postsecondary education and the college
financing options for the students and their
parents.]
(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
to eligible low-income students 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 middle school and secondary
school students 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 parents about
the advantages of obtaining a postsecondary education
and the college financing options for the students and
their parents.
(b) Awards.--
(1) In general.--From funds appropriated under
section [404H] 404G for each fiscal year, the Secretary
shall make awards to eligible entities described in
paragraphs (1) and (2) of subsection (c) to enable the
entities to carry out the program authorized under
subsection (a).
(2) Priority.--In making awards to eligible entities
described in paragraph (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
Amendments of 1998, 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;]
(A) give priority to eligible entities that
have a prior, demonstrated commitment to early
intervention leading to college access through
collaboration and replication of successful
strategies;
* * * * * * *
(c) Definition of Eligible Entity.--For the purposes of
this chapter, the term ``eligible entity'' means--
(1) a State; or
[(2) a partnership consisting of--
[(A) one or more local educational agencies
acting on behalf of--
[(i) one or more elementary schools
or secondary schools; and
[(ii) the secondary schools that
students from the schools described in
clause (i) would normally attend;
[(B) one or more degree granting institutions
of higher education; and
[(C) at least two community organizations or
entities, such as business, professional
associations, community-based organizations,
philanthropic organizations, State agencies,
institutions or agencies sponsoring programs
authorized under subpart 4, or other public or
private agencies or organizations.]
(2) a partnership--
(A) consisting of--
(i) 1 or more local educational
agencies; and
(ii) 1 or more degree granting
institutions of higher education; and
(B) which may include not less than 2 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.
* * * * * * *
SEC. 404B. REQUIREMENTS
[(a) Funding Rules.--
[(1) Continuation awards.--From the amount
appropriated under section [404H] 404 G for a fiscal
year, the Secretary shall continue to award grants to
States under this chapter (as this chapter was in
effect on the day before the date of enactment of the
Higher Education Amendments on 1998) in accordance with
the terms and conditions of such grants.
[(2) Distribution.--From the amount appropriated
under section 404H that remains after making
continuation awards under paragraph (1) for a fiscal
year, the Secretary shall--
[(A) make available--
[(i) not less than 33 percent of the
amount to eligible entities described
in section 404A(c)(1); and
[(ii) not less than 33 percent of the
amount to eligible entities described
in section 404A(c)(2); and
[(B) award the remainder of the amount to
eligible entities described in paragraph (1) or
(2) of section 404A(c).
[(3) Special rule.--The Secretary shall annually
reevaluate the distribution of funds described in
paragraph (2)(B) based on number, quality, and promise
of the applications and adjust the distribution
accordingly.]
(a) Funding Rules.--
(1) Distribution.--In awarding grants from the amount
appropriated under section 404G for a fiscal year, the
Secretary shall take into consideration--
(A) the geographic distribution of such
awards; and
(B) the distribution of such awards between
urban and rural applicants.
(2) Special rule.--The Secretary shall annually
reevaluate the distribution of funds described in
paragraph (1) based on number, quality, and promise of
the applications.
[(b) Limitation.--Each eligible entity described in section
404A(c)(1), and each eligible described in section 404A(c)(2)
that conducts a scholarship component under section 404E, shall
use not less than 25 percent and not more than 50 percent of
grant funds received under this chapter for the early
intervention component of an eligible entity's program under
this chapter, except that the Secretary may waive the 50
percent limitation if the eligible entity demonstrate that the
eligible entity has another means of providing the students
with financial assistance that is described in the plan
submitted under section 404C.]
[(c)](b) Coordination.-- * * *
* * * * * * *
[(d)](c) Designation of Fiscal Agent.-- * * *
[(e) Coordinators.--An eligible entity described in section
404A(c)(2) shall have a full-time program coordinator or a
part-time program coordinator, whose primary responsibility is
a project under section 404C.
[(f) Displacement.--An eligible entity descried in
404A(c)(2) shall ensure that the 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 reduction in hours, wages or employment
benefits.]
[(g)(d) Cohort Approach.--
(1) In general.--The Secretary shall require that
eligible entities described in section 404A(c)(2)--
(A) * * *
* * * * * * *
(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.
SEC. 404C. [ELIGIBLE ENTITY PLANS] APPLICATIONS.
(a) [Plan] Application Required for Eligibility.--
[(1) In general.--In order for an eligible entity to
qualify for a grant under this chapter, the eligible
entity shall submit to the Secretary [a plan] an
application for carrying out the program under this
chapter. [Such plan shall provide for the conduct of a
scholarship component if required or undertaken
pursuant to section 404E and an early intervention
component required pursuant to section 404D.]
[(2) Contents.--Each plan 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 require by
regulation. Each such plan shall--
[(A) describe the activities for which
assistance under this chapter is sought; and
[(B) provide such additional assurances as
the Secretary determines necessary to ensure
compliance with the requirements of this
chapter.]
(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 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 how the eligible agency will
meet the requirements of section 404E;
(C) provide assurances that adequate
administrative and support staff will be
responsible for coordinating the activities
described in section 404D;
(D) ensure 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
displacementsuch as a reduction in hours, wages or employment benefits;
(E) describe, in the case of 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 cohort 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;
(F) describe how the eligible entity will
coordinate programs with other existing
Federal, State, or local programs to avoid
duplication and maximize the number of students
served;
(G) provide such additional assurances as the
Secretary determines necessary to ensure
compliance with the requirements of this
chapter; and
(H) 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.
(b) Matching Requirement.--
(1) In general.--The Secretary shall not approve [a
plan] an application submitted under subsection (a)
unless [such plan] such application--
(A) * * *
* * * * * * *
(c) Methods for Complying With Matching Requirement.--An
eligible entity may count toward the matching requirement
described in subsection (b)(1)(A)--
(1) the amount of the financial assistance paid to
students from State, local, institutional, or private
funds under this chapter[;] 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;
* * * * * * *
[SEC. 404D. EARLY INTERVENTION.
[(a) Services.--
[(1) In general.--In order to receive a grant under
this chapter, an eligible entity shall demonstrate to
the satisfaction of the Secretary, in the plan
submitted under section 404C, that the eligible entity
will provide comprehensive mentoring, counseling,
outreach, and supportive services to students
participating in programs under this chapter. Such
counseling shall include--
[(A) financial aid counseling and information
regarding the opportunities for financial
assistance under this title; and
[(B) activities or information regarding--
[(i) fostering and improving parent
involvement in promoting the advantages
of a college education, academic
admission requirements, and the need to
take college preparation courses;
[(ii) college admissions and
achievement tests; and
[(iii) college application
procedures.
[(2) Methods.--The eligible entity shall demonstrate
in such plan, pursuant to regulations of the Secretary,
the methods by which the eligible entity will target
services on priority students described in subsection
(c), if applicable.
[(b) Uses of Funds.--
[(1) In general.--The Secretary shall, by regulation,
establish criteria for determining whether
comprehensive mentoring, counseling, outreach, and
supportive services programs may be used to meet the
requirements of subsection (a).
[(2) Permissible activities.--Examples of activities
that meet the requirements of subsection (a) include
the following:
[(A) Providing eligible students in preschool
through grade 12 with a continuing system of
mentoring and advising that--
[(i) is coordinated with the Federal
and State community service
initiatives; and
[(ii) may include such support
services as after school and summer
tutoring, assistance in obtaining
summer jobs, career mentoring, and
academic counseling.
[(B) Requiring each student to enter into an
agreement under which the student agrees to
achieve certain academic milestones, such as
completing a prescribed set of courses and
maintaining satisfactory progress described in
section 484(c), in exchange for receiving
tuition assistance for a period of time to be
established by each eligible entity.
[(C) Activities designed to ensure secondary
school completion and college enrollment of at-
risk children, such as identification of at-
risk children, after school and summer
tutoring, assistance in obtaining summer jobs,
academic counseling, volunteer and parent
involvement, providing former or current
scholarship recipients as mentor or peer
counselors, skills assessment, providing access
to rigorous core courses that reflect
challenging academic standards, personal
counseling, family counseling and home visits,
staff development, and programs and activities
described in this subparagraph that are
specially designed for students of limited
English proficiency.
[(D) Summer programs for individuals who are
in their sophomore or junior years of secondary
school or are planning to attend an institution
of higher education in the succeeding academic
year that--
[(i) are carried out at an
institution of higher education that
has programs of academic year
supportive services for disadvantaged
students through projects authorized
under section 402D or through
comparable projects funded by the State
or other sources;
[(ii) provide for the participation
of the individuals who are eligible for
assistance under section 402D or who
are eligible for comparable programs
funded by the State;
[(iii)(I) provide summer instruction
in remedial, developmental or
supportive courses;
[(II) provide such summer
services as counseling,
tutoring, or orientation; and
[(III) provide financial
assistance to the individuals
to cover the individuals'
summer costs for books,
supplies, living costs, and
personal expenses; and
[(iv) provide the individuals with
financial assistance during each
academic year the individuals are
enrolled at the participating
institution after the summer program.
[(E) Requiring eligible students to meet
other standards or requirements as the State
determines necessary to meet the purpose of
this section.
[(c) Priority Students.--For eligible entities not using a
cohort approach, the eligible entity shall treat as priority
students any student in preschool through grade 12 who is
eligible--
[(1) to be counted under section 1124(c) of the
Elementary and Secondary Education Act of 1965;
[(2) for free or reduced price meals under the
Richard B. Russell National School Lunch Act; or
[(3) for assistance pursuant to part A of title IV of
the Social Security Act.
[(d) Allowable Providers.--In the case of eligible entities
described in section 404(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 deems appropriate.]
SEC. 404D. ACTIVITIES.
(a) Required Activities.--Each eligible entity receiving a
grant under this chapter shall carry out the following:
(1) Provide information regarding financial aid for
postsecondary education to participating students in
the cohort described in subsection 404B(d)(1)(A).
(2) Encourage student enrollment in rigorous and
challenging curricula and coursework, in order to
reduce the need for remedial coursework at the
postsecondary level.
(3) Support activities designed to improve 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), provide for the scholarships
described in section 404E.
(b) Optional Activities for States and Partnerships.--An
eligible entity that receives a grant under this chapter may
use grant funds to carry out 1 or more of the following
activities:
(1) Providing tutoring and supporting mentors,
including 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 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 academic standards;
(B) successfully applying for postsecondary
education;
(C) successfully applying for student
financial aid; and
(D) developing graduation and career plans.
(6) Providing support for scholarships described in
section 404E.
(7) Introducing eligible students to institutions of
higher education, through trips and school-based
sessions.
(8) Providing an intensive extended school day,
school year, or summer program that offers--
(A) additional academic classes; or
(B) assistance with college admission
applications.
(9) 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) volunteer and parent involvement;
(F) encouraging former or current
participants of a program under this chapter to
serve as peer counselors;
(G) skills assessments;
(H) personal counseling;
(I) 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.
(10) Enabling eligible students to enroll in
Advanced Placement or International
Baccalaureate courses, or college entrance
examination preparation courses.
(11) 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.
(c) Additional Optional Activities for States.--In addition
to the required activities described in subsection (a) and the
optional 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 1 or more of the
following activities:
(1) Providing technical assistance to--
(A) middle schools or 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 strategies and activities that align
efforts in the State to prepare eligible studentsfor
attending and succeeding in postsecondary education, which may include
the development of graduation and career plans.
(4) Disseminating information on the use of
scientifically based research and best practices to
improve services for eligible students.
(5)(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.
(6) Working to align State academic standards and
curricula with the expectations of postsecondary
institutions and employers.
(7) Developing alternatives to traditional secondary
school that give students a head start on attaining a
recognized postsecondary credential (including an
industry 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.
(8) 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 priority
students any student in middle or secondary school who is
eligible--
(1) to be counted under section 1124(c) of the
Elementary and Secondary Education Act of 1965;
(2) for free or reduced price meals under the Richard
B. Russell National School Lunch Act;
(3) 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.); or
(4) for assistance under subtitle B of title VII of
the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11431 et seq.).
(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.
SEC. 404E. SCHOLARSHIP COMPONENT.
(a) In General.--
(1) States.-- * * *
* * * * * * *
(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(c), with the remainder of such funds to be used
for a scholarship program under this section.
(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.
[(b)] (d) Grant Amounts.--The maximum amount of a
scholarship that an eligible student shall be eligible to
receive under this section shall be established by the eligible
entity. The minimum amount of the scholarship fo each fiscal
year shall not be less than [the lesser of--
[(1) 75 percent of the average cost of attendance for
an in-State student, in a 4-year program of
instruction, at public institutions of higher education
in such State, as determined in accordance with
regulations prescribed by the Secretary; or
[(2) the maximum Federal Pell Grant funded under
section 401 for such fiscal year.] the minimum Federal
Pell Grant award under section 401 for such award year.
(e) Portability of Assistance.--
(1) In general.--Each eligible entity described in
section 404A(c)(1) that receives a grant under this
chapter shall create or organize a trust for each
cohort described in section 404B(d)(1)(A) for which the
grant is sought in the application submitted by the
entity, which trust shall be an amount that is not less
than the minimum scholarship amount described in
subsection (d), multiplied by the number of students
participating in the cohort.
(2) Requirement for portability.--Funds contributed
to the trust for a cohort shall be available to a
student in the cohort when the student has--
(A) completed a secondary school diploma, its
recognized equivalent, or other 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 from a trust 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 which are incurred in connection with
such enrollment or attendance.
(4) Return of funds.--
(A) Redistribution.--
(i) In general.--Trust funds that are
not used by an eligible student within
6 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), an
eligible entity has funds remaining,
the eligible entity shall return excess
funds to the Secretary for distribution
to other grantees under this chapter.
(B) Nonparticipating entity.--Notwithstanding
subparagraph (A), in the case of an eligible
entity described in section 404A(c)(1)(A) that
does not receive assistance under this subpart
for 6 fiscal years, the eligible entity shall
return any trust funds not awarded or obligated
to eligible students to the Secretary for
distribution to other grantees under this
chapter.
[(c)] (f) Relation to Other Assistance.-- * * *
[(d)] (g) Eligible Students.--A student eligible for
assistance under this section is a student who--
(1) is less than 22 years old at time of first
scholarship award under this section;
(2) receives a secondary school diploma or its
recognized equivalent on or after January 1, [1993]
2000;
(3) is enrolled or accepted for enrollment in a
program of undergraduate instruction at an institution
of higher education that is located within the State's
boundaries, except that, at the State's option, an
eligible entity may offer scholarship program
portability for recipients who attend institutions of
higher education outside such State; and
(4) who participated in the [early intervention
component required under section 404D] activities
required under section 404D(a).
[(e) Priority.--The Secretary shall ensure that each
eligible entity places a priority on awarding scholarships to
students who will receive a Federal Pell Grant for the academic
year for which the scholarship is awarded under this section.
[(f) Special Rule.--An eligible entity may consider
students who have successfully participated in programs funded
under chapter 1 to have met the requirements of subsection
(d)(4).]
SEC. 404F. 21ST CENTURY SCHOLAR CERTIFICATES.
[(a) Authority.--The Secretary, using funds appropriated
under section 404H that do not exceed $200,000 for a fiscal
year--
[(1) shall ensure that certificates, to be known as
21st Century Scholar Certificates, are provided to all
students participating in programs under this chapter;
and
[(2) may, as practicable, ensure that such
certificates are provided to all students in grades 6
through 12 who attend schools at which at least 50
percent of the students enrolled are eligible for a
free or reduced price lunch under the Richard B.
Russell National School Lunch Act.
[(b) Information Required.--A 21st Century Scholar
Certificate shall be personalized for each student and indicate
the amount of Federal financial aid for college which a student
may be eligible to receive.]
* * * * * * *
SEC. [404G] 404F. EVALUATION AND REPORT.
[(a) Evaluation.--* * *
* * * * * * *
(c) Federal Evaluation.--In order to evaluate and improve
the impact of the activities assisted under this chapter, the
Secretary shall, from not more than 0.75 percent of the funds
appropriated under section [404H] 404G for a fiscal year, award
one or more grants, contracts, or cooperative agreements to or
with public and private institutions and organizations, to
enable the institutions and organizations to evaluate the
effectiveness of the program and, as appropriate, disseminate
the results of the evaluation.
* * * * * * *
SEC. [404H] 404G AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
chapter [$200,000,000 for fiscal year 1999 and such sums as may
be necessary for each of the 4 succeeding fiscal years.] such
sums as may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
* * * * * * *
Subpart 3--Federal Supplemental Educational Opportunity Grants
SEC. 413A. PURPOSE; APPROPRIATIONS AUTHORIZED.
(a) Purpose of Subpart.--* * *
(b) Authorization of Appropriations.--(1) For the purpose
of enabling the Secretary to make payments to institutions of
higher education which have made agreements with the Secretary
in accordance with section 413C(a), for use by such
institutions for payments to undergraduate students of
supplemental grants awarded to them under this subpart, there
are authorized to be appropriated [$675,000,000 fiscal year
1999 and such sums as may be necessary for the 4 succeeding
fiscal years.] such sums as may be necessary for fiscal year
2006 and each of the 5 succeeding fiscal years.
* * * * * * *
SEC. 413D. ALLOCATION OF FUNDS.
(a) Allocation Based on Previous Allocation.--(1) From the
amount appropriated pursuant to section 413A(b) for each fiscal
year, the Secretary shall first allocate to each eligible
institution an amount equal to 100 percent of the amount [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).] 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).
* * * * * * *
[(4)(A) Notwithstanding any other provision of this
section, the Secretary may allocate an amount equal to
not more than 10 percent of the amount by which the
amount appropriated in any fiscal year to carry out
this part exceeds $700,000,000 among eligible
institutions described in subparagraph (B).
[(B) In order to receive an allocation pursuant to
subparagraph (A) an institution shall be an eligible
institution from which 50 percent or more of the Pell
Grant recipients attending such eligible institution
graduate from or transfer to a 4-year institution of
higher education.]
(b) * * *
* * * * * * *
(c) Determination of Institution's Need.--(1) The amount of
an institution's need is equal to--
(A) * * *
* * * * * * *
(3)(A) * * *
* * * * * * *
(D) The allowance for books and supplies described in
subparagraph (A)(iii) is equal to [$450] $600.
* * * * * * *
Subpart 4--Leveraging Educational Assistance Partnership Program
SEC. 415A. PURPOSE; APPROPRIATIONS AUTHORIZED.
(a) Purpose of Subpart.--It is the purpose of this subpart
to make incentive grants available to States to assist States
in--
(1) providing grants to--
(A) * * *
* * * * * * *
(b) Authorization of Appropriations; Availability.--
[(1) In General.--There are authorized to be
appropriated $105,000,000 for fiscal year 1999, and
such sums as may be necessary for each of the 4
succeeding fiscal years.]
(1) In general.--There are authorized to be
appropriated to carry out this subpart such sums as may
be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
* * * * * * *
SEC. 415C. APPLICATIONS FOR LEVERAGING EDUCATIONAL ASSISTANCE
PARTNERSHIP PROGRAMS.
(a) Submission and Contents of Applications.--* * *
(b) Payment of Federal Share of Grants Made by Qualified
Program.--From a State's allotment under this subpart for any
fiscal year the Secretary is authorized to make payments to
such State for paying up to 50 percent of the amount of student
grants pursuant to a State program which--
(1) * * *
(2) provides that such grants will be in amounts [not
in excess of $5,000 per academic year] not to exceed
the lesser of $12,500 or the student's cost of
attendance per academic year (A) for attendance on a
full-time basis at an institution of higher education,
and (B) for campus-based community service work
learning study jobs;
* * * * * * *
[(10) for any academic year beginning after June 30,
1987, provides the non-Federal share of the amount of
student grants or work-study jobs under this subpart
through a direct appropriation of State funds for the
program under this subpart.]
(10) 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 other contributing partners.
* * * * * * *
[SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP
PROGRAM.
[(a) In General.--From amounts reserved under section
415A(b)(2) for each fiscal year, the Secretary shall--
[(1) make allotments among States in the same manner
as the Secretary makes allotments among States under
section 415B; and
[(2) award grants to States, from allotments under
paragraph (1), to enable the States to pay the Federal
share of the cost of the authorized activities
described in subsection (c).
[(b) Applicability Rule.--The provisions of this subpart
which are not inconsistent with this section shall apply to the
program authorized by this section.
[(c) Authorized Activities.--Each State receiving a grant
under this section may use the grant funds for--
[(1) making awards that--
[(A) supplement grants received under section
415C(b)(2) by eligible students who demonstrate
financial need; or
[(B) provide grants under section 415C(b)(2)
to additional eligible students who demonstrate
financial need;
[(2) providing scholarships for eligible students--
[(A) who demonstrate financial need; and
[(B) who--
[(i) desire to enter a program of
study leading to a career in--
[(I) information technology;
[(II) mathematics, computer
science, or engineering;
[(III) teaching; or
[(IV) another field
determined by the State to be
critical to the State's
workforce needs; or
[(ii) demonstrate merit or academic
achievement; and
[(3) making awards that--
[(A) supplement community service work-study
awards received under section 415C(b)(2) by
eligible students who demonstrate financial
need; or
[(B) provide community service work-study
awards under section 415C(b)(2) to additional
eligible students who demonstrate financial
need.
[(d) Maintenance of Effort Requirement.--Each State
receiving a grant under this section for a fiscal year shall
provide the Secretary 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 (c) for the
preceding fiscal year were not less than the amount expended
per student or the aggregate expenditures by the State for the
activities for the second preceding fiscal year.
[(e) Federal Share.--The Federal share of the cost of the
authorized activities described in subsection (c) for any
fiscal year shall be not more than 33\1/3\ percent.
[(f) Special Rule.--Notwithstanding subsection (d), for
purposes of determining a State's share of the cost of the
authorized activities described in subsection (c), the State
shall consider only those expenditures from non-Federal sources
that exceed its total expenditures for need-based grants,
scholarships, and work-study assistance for fiscal year 1999
(including any such assistance provided under this subpart).
[(g) Use of Funds for Administrative Costs Prohibited.--A
State receiving a grant under this section shall not use any of
the grant funds to pay administrative costs associated with any
of the authorized activities described in subsection (c).]
[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 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
Statesthat meet the requirements
described in paragraph (2)(A)(ii).
(2) Federal share.--
(A) In general.--The Federal share under this
section shall be determined in accordance with
the following:
(i) If a State applies for an
allotment under this section in
partnership with--
(I) 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
(II)(aa) philanthropic
organizations that are located
in, or that provide funding in,
the State; or
(bb) private corporations
that are located in, or that do
business in, the State,
then the Federal share of the cost of carrying out the
activities under subsection (d) shall be equal to 50 percent.
(ii) If a State applies for an
allotment under this section in
partnership with--
(I) 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
(II)(aa) philanthropic
organizations that are located
in, or that provide funding in,
the State; or
(bb) private corporations
that are located in, or that do
business in, the State,
then the Federal share of the cost of carrying out the
activities under subsection (d) shall be equal to 57 percent.
(B) Non-federal share.--
(i) In general.--The non-Federal
share under this section may be
provided in cash or in kind, fully
evaluated and in accordance with this
subparagraph.
(ii) In kind contribution.--For the
purpose of calculating the non-Federal
shareunder this section, an in kind
contribution is a non-cash award that has monetary value, such as
provision of room and board and transportation passes, and that helps a
student meet the cost of attendance.
(iii) Effect on need analysis.--For
the purpose of calculating a student's
need in accordance with part F of this
title, an in-kind contribution
described in clause (ii) shall not be
considered an asset or income.
(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) Assurances that the State will
provide the non-Federal share from
State, institutional, philanthropic, or
private funds, of not less than the
required share of the cost of carrying
out the activities under subsection
(d), as determined under subsection
(b), in accordance with the following:
(I) The State shall specify
the methods by which non-
Federal share funds will be
paid and include provisions
designed to ensure that funds
provided under this section
will be used to supplement, and
not supplant, Federal and non-
Federal funds available for
carrying out the activities
under this title.
(II) A State that uses non-
Federal funds to create or
expand existing partnerships
with nonprofit organizations or
community-based organizations
in which such organizations
match State funds for student
scholarships, may apply such
matching funds from such
organizations toward fulfilling
the State's non-Federal share
obligation under this clause.
(iii) Assurances 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.
(iv) A description of the
organizational structure that the State
has in place to administer the
activities under subsection (d),
including a description of the system
the State will use to track the
participation of students who receive
grants under this section to degree
completion.
(v) Assurances that the State has a
method in place, such as acceptance of
the automatic zero expected family
contribution determination described in
section 479, to identify eligible low-
income students and award State grant
aid to such students.
(vi) Assurances 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, the State, and
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 1 public and 1 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 1--
(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.--
(i) Partnerships with institutions
serving less than a majority of
students in the state.--
(I) In general.--In the case
where a State receiving an
allotment under this section is
in a partnership described in
subsection (b)(2)(A)(i), the
amount of a grant for access
and persistence awarded by such
State shall be not less than
the amount that is equal to the
average undergraduate tuition
and mandatory fees at 4-year
public institutions of higher
education in the State where
the student resides (less any
other Federal or State
sponsored grant amount, work
study amount, and scholarship
amount received by the
student), and such amount shall
be used toward the cost of
attendance at an institution of
higher education located in the
State.
(II) Cost of attendance.--A
State that has a program, apart
from the partnership under this
section, of providing eligible
low-income students with grants
that are equal to the average
undergraduate tuition and
mandatory fees at 4-year public
institutionsof higher education
in the State, may increase the amount of grants for access and
persistence awarded by such State up to an amount that is equal to the
average cost of attendance at 4-year public institutions of higher
education in the State (less any other Federal or State sponsored grant
amount, work study amount, and scholarship amount received by the
student).
(ii) Partnerships with institutions
serving the majority of students in the
state.--In the case where a State
receiving an allotment under this
section is in a partnership described
in subsection (b)(2)(A)(ii), the amount
of a grant for access and persistence
awarded by such State shall be not more
than an amount that is equal to the
average cost of attendance at 4-year
public institutions of higher education
in the State where the student resides
(less any other Federal or State
sponsored grant amount, college work
study amount, and scholarship amount
received by the student), and such
amount shall be used by the student to
attend an institution of higher
education located in the State.
(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,
such agreement may also apply to grants
awarded under this section.
(2) Early notification.--
(A) In general.--Each State receiving an
allotment under this section shall annually
notify low-income students, such as students
who are eligible to receive a free lunch under
the school lunch program established under the
Richard B. Russell National School Lunch Act,
in grade 7 through grade 12 in the State, of
the students' potential eligibility for student
financial assistance, including a grant for
access and persistence, to attend an
institution of higher education.
(B) Content of notice.--The notification
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 candidacy 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
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 estimation
of the total amount of
financial aid alow-income
student with a similar income level may expect to receive, including an
estimation of the amount of a grant for access and persistence and an
estimation 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 that is a
partner in the
partnership or
qualifies 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 upon--
(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
appropriations; and
(III) other aid received by
the student at the time of the
student's enrollmentat 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 meets not
less than 1 of the following:
(A) Meets not less than 2 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
described in section 479) or a
comparable alternative based upon the
State's approved criteria in section
415C(b)(4).
(ii) Has qualified for a free lunch,
or at the State's discretion a reduced
price lunch, under the school lunch
program established under the Richard
B. Russell National School Lunch Act.
(iii) Qualifies for the State's
maximum undergraduate award, as
authorized under section 415C(b).
(iv) 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 existing 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 tentative 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 that
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) Use of Funds for Administrative Costs Prohibited.--A
State that receives an allotment under this section shall not
use any of the allotted funds to pay administrative costs
associated with any of the authorized activities described in
subsection (d).
(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)(A)(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
which 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 fora 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 2-year period
that begins on the date of enactment of the Higher Education
Amendments of 2005, 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 such Act to States that choose to apply for grants under
such predecessor section.
(k) Reports.--Not later than 3 years after the date of
enactment of the Higher Education Amendments of 2005 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.
* * * * * * *
Subpart 5--Special Programs for Students Whose Families Are Engaged in
Migrant and Seasonal Farmwork
SEC. 418A. MAINTENANCE AND EXPANSION OF EXISTING PROGRAMS.
(a) Program Authority.--The Secretary shall maintain and
expand (including providing outreach and technical assistance)
existing secondary and postsecondary high school equivalency
program and college assistance migrant program projects located
at institutions of higher education or at private nonprofit
organizations working in cooperation with institutions of
higher education.
(b) Services Provided by High School Equivalency Program.--
The services authorized by this subpart for the high school
equivalency program include--
(1) recruitment services to reach persons--
(A)(i) * * *
* * * * * * *
(B)(i) who themselves, or whose [parents]
immediate family, have spent a minimum of 75
days during the past 24 months in migrant and
seasonal farmwork; or
(ii) * * *
* * * * * * *
(3) supportive services which include the following:
(A) personal, vocational, and academic
counseling;
(B) placement services designed to place
students in a university, college, or junior
college program (including preparation for
college entrance examinations), or in military
service or career positions; and
(C) * * *
* * * * * * *
(5) [weekly] stipends for high school equivalency
program participants;
(6) * * *
(7) exposure to cultural events, academic programs,
and other educational and cultural activities usually
not available to migrant youth; [and]
(8) other essential supportive services, as needed to
ensure the success of eligible students[.]; and
(9) other activities to improve persistence and
retention in postsecondary education.
(c) Services Provided by College Assistance Migrant
Program.--(1) Services authorized by this subpart for the
college assistance migrant program include--
(A) * * *
(B) supportive and instructional services to improve
placement, persistence, and retention in postsecondary
education which include:
(i) personal, academic, [and career] career,
and economic education or personal finance
counseling as an ongoing part of the program.
* * * * * * *
(E) exposure to cultural events, academic programs,
and other activities not usually available to migrant
youth; [and]
(F) internships; and
[(F)] (G) other support services as necessary to
ensure the success of eligible students.
(2) * * *
(A) monitoring and reporting the academic progress of
students who participated in the project during such
student's first year of college and during such
student's subsequent years in college; [and]
(B) referring such students to on- or off-campus
providers of counseling services, academic assistance,
or financial aid [.], 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
(C) for students attending 2-year institutions of
higher education, encouraging the students to transfer
to 4-year institutions of higher education, where
appropriate, and monitoring the rate of transfer of
such students.
(d) * * *
(e) Five-year Grant Period; Consideration of Prior
Experience.--Except under extraordinary circumstances, the
Secretary shall award grants for a 5-year period. For the
purpose of making grants under this subpart, the Secretary
shall consider the prior experience of service delivery under
the particular project for which funds are sought by each
applicant. Such prior experience shall be awarded the same
level of consideration given this factor for applicants for
programs in accordance with [section 402A(c)(1)] section
402A(c)(2).
(f) Minimum Allocations.--The Secretary shall not allocate
an amount less than--
(1) [$150,000] $180,000 for each project under the
high school equivalency program, and
(2) [$150,000] $180,000 for each project under the
college assistance migrant program.
(g) * * *
(h) Authorization of Appropriations.--(1) There are
authorized to be appropriated for the high school equivalency
program [$15,000,000 for fiscal year 1999 and such sums as may
be necessary for each of the 4 succeeding fiscal years.] such
sums as may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
(2) There are authorized to be appropriated for the
college assistance migrant program [$5,000,000 for
fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years.] such sums as
may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
* * * * * * *
Subpart 6--Robert C. Byrd Honors Scholarship Program
SEC. 419A. STATEMENT OF PURPOSE.
* * * * * * *
SEC. 419F. ELIGIBILITY OF SCHOLARS.
(1) High School Graduation or Equivalent and Admission to
Institution Required.--Each student awarded a scholarship under
this subpart shall be a graduate of a public or private
secondary school (or a home school, whether treated as a home
school or a private school under State law) or have the
equivalent of a certificate of graduation as recognized by the
State in which the student resides and must have been admitted
for enrollment at an institution or higher education.
* * * * * * *
SEC. 419K. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for this subpart
[$45,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.] such sums
as may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
* * * * * * *
Subpart 7--Child Care Access Means Parents in School
SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
(a) Purpose.-- * * *
(b) Program Authorized.--
(1) Authorized.-- * * *
(2) Amount of Grants.--
(A) In general.-- * * *
(B) Minimum.--[A grant]
(i) In general.--Except as provided
in clause (ii), a grant under this
section shall be awarded in an amount
that is not less than $10,000.
(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.
* * * * * * *
[(7) Definition of low-income student.--For the
purpose of this section, the term ``low-income
student'' means a student who is eligible to receive a
Federal Pell Grant for the fiscal year for which the
determination is made.]
(7) Definition of low-income student.--For the
purpose of this section, the term ``low-income
student'' means a student who--
(A) is eligible to receive a Federal Pell
Grant for the fiscal year for which the
determination is made; or
(B) would otherwise be eligible to receive a
Federal Pell Grant for the fiscal 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.
* * * * * * *
(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section [$45,000,000 for
fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years.] such sums as may be necessary
for fiscal year 2006 and each of the 5 succeeding fiscal years.
* * * * * * *
SEC. 424. SCOPE AND DURATION OF FEDERAL LOAN INSURANCE PROGRAM.
(a) Limitations on Amounts of Loans Covered by Federal
Insurance.--The total principal amount of new loans made and
installments paid pursuant to lines of credit (as defined in
section 435) to students covered by Federal loan insurance
under this part shall not exceed $2,000,000,000 for the period
from July 1, 1976, to September 30, 1976, and for each of the
succeeding fiscal years ending prior to October 1, [2004] 2012.
Thereafter, Federal loan insurance pursuant to this part may be
granted only for loans made (or for loans installments paid
pursuant to lines of credit) to enable students, who have
obtained prior loans insured under this part, to continue or
complete their educational program; but no insurance may be
granted for any loan made or installment paid after September
30, [2008] 2016.
* * * * * * *
SEC. 425. LIMITATIONS ON INDIVIDUAL FEDERALLY INSURED LOANS AND ON
FEDERAL LOAN INSURANCE.
(a) Annual and Aggregate Limits.--
(1) Annual limits.--(A) * * *
(i) * * *
(I) [$2,625] $3,500 if such student
is enrolled in a program whose length
is at least one academic year in length
(as determined under section 481); and
* * * * * * *
(ii) * * *
(I) [$3,500] $4,500; or
* * * * * * *
SEC. 427A. APPLICABLE INTEREST RATES.
(a) Rates To Be Consistent for Borrower's Entire Debt.--* *
*
* * * * * * *
(l) Interest Rates for New Loans on or After July 1,
2006.--
(1) In general.--* * *
(2) PLUS loans.--Notwithstanding subsection (h), with
respect to any loan under section 428B for which the
first disbursement is made on or after July 1, 2006,
the applicable rate of interest shall be [7.9 percent]
8.5 percent on the unpaid principal balance of the
loan.
* * * * * * *
SEC. 438. SPECIAL ALLOWANCES.
(a) Findings.-- * * *
(b) Computation and Payment.--
(1) Quarterly payment based on unpaid balance.-- * *
*
* * * * * * *
(2) Rate of special allowance.--(A) * * *
* * * * * * *
(I)\1\Loans disbursed on or after january 1,
2000.--
(i) In general.-- * * *
* * * * * * *
(iv) Consolidation loans.--In the
case of any consolidation loan for
which the application is received by an
eligible lender on or after January 1,
2000, and for which the applicable
interest rate is determined under
section 427A(k)(4) or (1)(3), clause
(i)(III) of this subparagraph shall be
applied by substituting ``2.64
percent'' for ``2.34 percent''[,
subject to clause (vi) of this
subparagraph].
(v) Limitation on special allowances
for plus loans before [july 1, 2006]
april 1, 2006.--In the case of PLUS
loans made under section 428B and first
disbursed on or after January 1, 2000,
and before [July 1, 2006] April 1,
2006, for which the interest rate is
determined under section 427A(k)(3), a
special allowance shall not be paid for
such loan during any 12-month period
beginning on July 1, and ending on June
30 unless, on the June 1 preceding such
July 1--
(I) * * *
* * * * * * *
[(vi) Limitation on special
allowances for consolidation loans.--In
the case of consolidation loans made
under section 428C and for which the
application is received on or after
January 1, 2000, for which the interest
rate is determined under section
427A(k)(4) or (1)(3), a special
allowance shall not be paid for such
loan during any 3-month period ending
March 31, June 30, September 30, or
December 31 unless--
[(I) the average of the bond
equivalent rates of the quotes
of the 3-month commercial paper
(financial) rates in effect for
each of the days in such
quarter as reported by the
Federal Reserve inPublication
H-15 (or its successor) for such 3-month period; plus
[(II) 2.64 percent,
exceeds the rate determined under
section 427A(k)(4) or (l)(3), whichever
is applicable.
[(vii) Limitation on special
allowances for plus loans on or after
july 1, 2006.--In the case of PLUS
loans made under section 428B and first
disbursed on or after July 1, 2006, for
which the interest rate is determined
under section 427A(l)(2), a special
allowance shall not be paid for such
loan during any 12-month period
beginning on July 1 and ending on June
30 unless--
[(I) the average of the bond
equivalent rates of the quotes
of the 3-month commercial paper
(financial), as published by
the Board of Governors of the
Federal Reserve System in
Publication H-15 (or its
successor), for the last
calendar week ending on or
before such July 1; plus
[(II) 2.64 percent,
exceeds 9.0 percent]
(vi) Recapture of excess interest.--
(I) Excess credited.--With
respect to a loan on which the
applicable interest rate is
determined under subsection (k)
or (l) of section 427A and for
which the first disbursement of
principal is made on or after
April 1, 2006, if the
applicable interest rate for
any 3-month period exceeds the
special allowance support level
applicable to such loan under
this subparagraph for such
period, then an adjustment
shall be made by calculating
the excess interest in the
amount computed under subclause
(II) of this clause, and by
crediting the excess interest
to the Government not less
often than annually.
(II) Calculation of excess.--
The amount of any adjustment of
interest on a loan to be made
under this subsection for any
quarter shall be equal to--
(aa) the applicable
interest rate minus the
special allowance
support level
determined under this
subparagraph;
multiplied by
(bb) the average
daily principal balance
of the loan (not
including unearned
interest added to
principal) during such
calendar quarter;
divided by
(cc) four.
(III) Special allowance
support level.--For purposes of
this clause, the term ``special
allowance support level''
means, for any loan, a number
expressed as a percentage equal
to the sum of the rates
determined under subclauses (I)
and (III) of clause (i), and
applying any substitution rules
applicable to such loan under
clauses (ii), (iii), and (iv)
in determining such sum.
* * * * * * *
SEC. 428. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.
(a) Federal Interest Subsidies.--
(1) Types of loans that qualify.-- * * *
* * * * * * *
(5) Duration of authority to make interest subsidized
loans.--the period referred to in subparagraph (B) of
paragraph (1) of this subsection shall begin on the
date of enactment of this Act and end at the close of
September 30, [2004] 2012, except that, in the case of
a loan made or insured under a student loan or loan
insurance program to enable a student who has obtained
a prior loan made or insured under such program to
continue his or her education program, such period
shall end at the close of September 30, [2008] 2016.
* * * * * * *
(b) Insurance Program Agreements to Quality Loan for
Interest Subsidies.--
(1) Requirements of insurance program.-- * * *
(A) * * *
(i) in the case of a student at an
eligible institution who has not
successfully completed the first year
of a program of undergraduate
education--
(I) [$2,625] 3,500, if such
student is enrolled in a
program whose length is at
least one academic year in
length; and
* * * * * * *
(ii) in the case of a student at an
eligible institution who has
successfully completed such first year
but has not successfully completed the
remainder of a program of undergraduate
education--
(I) [$3,500] $4,500; or
* * * * * * *
[(G) insures 98 percent of the unpaid
principal of loans insured under the program,
except that such program shall insure 100
percent of the unpaid principal of loans made
with funds advanced pursuant to section 428(j)
or 439(q);]
(G) insures 97 percent of unpaid principal of
loans insured under the program;
[(H) provides for collection of a single
insurance premium equal to not more than 1.0
percent of the principal amount of the loan, by
deduction proportionately from each installment
payment of the proceeds of the loan to the
borrower, and insures that the proceeds of the
premium will not be used for incentive payments
to lenders;]
(H) provides for the collection, and the
deposit in the Federal fund established under
section 422A(a), of a guaranty agency
origination fee of 1.0 percent of each
disbursement of the proceeds of the loan, which
fee may be provided from funds in the guaranty
agency's operating fund under section 422B or
from other non-Federal funds;
* * * * * * *
(M) provides that periodic installments of
principal need not be paid, but interest shall
accrue and be paid by the Secretary, during any
period--
(i) during which the borrower-- * * *
* * * * * * *
(ii) not in excess of 3 years during
which the borrower is seeking and
unable to find full-time employment,
except that no borrower who provides
evidence of eligibility for
unemployment benefits shall be required
to provide additional paperwork for a
deferment under this clause; [or]
(iii) not in excess of 3 years during
which the borrower--
(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; or
[(iii)] (iv) not in excess of 3 years
for any reason which the lender
determines, in accordance with
regulations prescribed by the Secretary
under section 435(o), has caused or
will cause the borrower to have an
economic hardship;
(N) provides that funds borrowed by a
student--
(i) are disbursed to the institution
by check or other means that is payable
to, and requires the endorsement or
other certification by, such student;
[or]
[(ii) in the case of a student who is
studying outside the United States in a
program of study abroad that is
approved for credit by the home
institution at which such student is
enrolled or at an eligible foreign
institution, are, at the request of the
student, disbursed directly to the
student by the means described in
clause (i), unless such student
requests that the check be endorsed, or
the funds transfer authorized, pursuant
to an authorized power-of-attorney;]
(ii) in the case of a student who is
studying outside the United States in a
program of study abroad that is
approved for credit by the home
institution at which such student is
enrolled, and only after verification
of the student's enrollment by the
lender or guaranty agency, are, at the
request of the student, disbursed
directly to the student by the means
described in clause (i), unless such
student requests that the check be
endorsed, or the funds transfer be
authorized, pursuant to an authorized
power-of-attorney; or
(iii) in the case of a student who is
studying outside the United States in a
program of study at an eligible foreign
institution, are, at the request of the
foreign institution, disbursed directly
to the student, only after verification
of the student's enrollment by the
lender or guaranty agency by the means
described in clause (i);
* * * * * * *
(Y) provides that--
(i) the lender shall determine the
eligibility of a borrower for a
deferment described in subparagraph
(M)(i) based on receipt of--
(I) * * *
(II) * * *
(III) student status
information received by the
lender that the borrower is
enrolled on at least a half-
time basis, except that, if
requested by an institution of
higher education, the lender
shall confirm such status
through the use of the National
Student Loan Data System; and
* * * * * * *
(c) Guaranty Agreements for Reimbursing Losses.--
(1) Authority to enter into agreements.--(A) * * *
* * * * * * *
[(D) Reimbursements of loses made by the Secretary on
loans submitted for claim by an eligible lender,
servicer, or guaranty agency designated for exceptional
performance under section 428I shall not be subject to
additional review by the Secretary or repurchase by the
guaranty agency for any reason other than a
determination by the Secretary that the eligible
lender, servicer, or guaranty agency engaged in fraud
or other purposeful misconduct in obtaining designation
for exceptional performance.]
[(E)] (D) Notwithstanding any other provisions of
this section, in the case of a loan made pursuant to a
lender-of-last-resort program, the Secretary shall
apply the provisions of--
(i) * * *
* * * * * * *
[(F)] (E) Notwithstanding any other provisions of
this section, in the case of an outstanding loan
transferred to a guaranty agency from another guaranty
agency pursuant to a plan approved by the Secretary in
response to the insolvency of the latter such guarantee
agency, the Secretary shall apply the provision of--
(i) * * *
* * * * * * *
(2) Contents of guaranty agreements.--The guaranty
agreement--
(A) shall set forth such administrative and
fiscal procedures as may be necessary to
protect the United States from the risk of
unreasonable loss thereunder, to ensure proper
and efficient administration of the loan
insurance program, and to assure that due
diligence will be exercised in the collection
of loans insured under the program, including
(i) a requirement that each beneficiary of
insurance on the loan submit proof that the
institution was contacted and other reasonable
attempts were made to locate the borrower (when
the location of the borrower is unknown) and
proof that contact was made with the borrower
(when the location is known) and (ii)
requirements establishing procedures to
preclude consolidation lending from being an
excessive proportion of guaranty agency
recoveries on defaulted loans under this part;
* * * * * * *
(D) shall provide that if, after the
Secretary has made payment under the guaranty
agreement pursuant to paragraph (1) of this
subsection with respect to any loan, any
payments are made in discharge of the
obligation incurred by the borrower with
respect to such loan (including any payments of
interest accruing on such loan after such
payment by the Secretary), there shall be paid
over to the Secretary (for deposit in the fund
established by section 431) such proportion of
the amounts of such payments as is determined
(in accordance with [paragraph (6)] paragraph
(6)(A)) to represent
* * * * * * *
(H) set forth assurances that--
(i) upon the request of an eligible
institution, the guaranty agency shall,
subject to clauses (ii) and (iii),
furnish to the institution information
with respect to students (including the
names and addresses of such students)
who received loans made, insured, or
guaranteed under this part for
attendance at the eligible institution
and for whom [preclaims] default
aversion assistance activities have
been requested under subsection (1);
* * * * * * *
(6) Secretary's equitable share.--(A) For the purpose
of paragraph (2)(D), the Secretary's equitable share of
payments made by the borrower shall be that portion of
the payments remaining after the guaranty agency with
which the Secretary has an agreement under this
subsection has deducted from such payments--
[(A)] (i) a percentage amount equal to the
complement of the reinsurance percentage in
effect when payment under the guaranty
agreement was made with respect to the loan;
and
[(B)] (ii) an amount equal to 24 percent of
such payments for use in accordance with
section 422B, except that, beginning on October
1, 2003, this subparagraph shall be applied by
substituting ``23 percent'' for ``24 percent''.
(B) Guaranty agency obligations.--A guaranty agency
shall--
(i) on or after October 1, 2006--
(I) not charge the borrower
collection costs in an amount in excess
of 18.5 percent of the outstanding
principal and interest of a defaulted
loan that is paid off through
consolidation by the borrower under
this title; and
(II) remit to the Secretary a portion
of the collection charge under
subclause (I) equal to 8.5 percent of
the outstanding principal and interest
of such defaulted loan; and
(ii) on and after October 1, 2009, remit to
the Secretary the entire amount charged under
clause (i)(I) with respect to each defaulted
loan that is paid off with excess consolidation
proceeds.
(C) Excess consolidation proceeds.--For purposes of
subparagraph (B), the term ``excess consolidation
proceeds'' means, with respect to any guaranty agency
for any Federal fiscal year beginning on or after
October 1, 2009, the proceeds of consolidation of
defaulted loans under this title that exceed 45 percent
of the agency's total collections on defaulted loans in
such Federal fiscal year.
* * * * * * *
(9) Guaranty agency reserve level.--(A) * * *
* * * * * * *
(K) The Secretary, within 3 months after the end of
each fiscal year, shall submit to the [House Committee
on Education and the Workforce and the Senate Committee
on Labor and Human Resources] authorizing committees a
report specifying the Secretary's assessment of the
fiscal soundness of the guaranty agency system.
* * * * * * *
(g) Action on Insurance Program and Guaranty Agreements.--
If a nonprofit private institution or organization--
(1) * * *
(2) as provided in the application, undertakes to
meet the requirements of section 422(c)(6)(B) (i),
(ii), and (iii), the Secretary shall consider and act
upon such application within 180 days, and shall
forthwith notify the [Committee on Labor and Human
Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives]
authorizing committees of his actions.
* * * * * * *
(n) Blanket Certificate of Loan Guaranty.--
(1) In general.-- * * *
* * * * * * *
(4) Report required.--The Secretary shall, at the
conclusion of the pilot program under paragraph (3),
provide a report to the [Committee on Education and the
Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate]
authorizing committees on the impact of the blanket
certificates of guaranty on program efficiency and
integrity.
* * * * * * *
SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES.
(a) Voluntary Agreements.--
(1) Authority.-- * * *
* * * * * * *
(4) Report required.--Not later than September 30,
2001, the Secretary shall report to the [Committee on
Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House
of Representatives] authorizing committees regarding
the impact that the voluntary flexible agreements have
had upon program integrity, program and cost
efficiencies, and the availability and delivery of
student financial aid. Such report shall include--
(A) * * *
* * * * * * *
(c) Public Notice.--
(1) In general.-- * * *
* * * * * * *
(2) Agreement notice.--The Secretary shall notify the
[Chairperson and the Ranking Minority Member of the
Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the
House of Representatives] Chairpersons and Ranking
Members of the authorizing committees not later than 30
days prior to concluding an agreement under this
section. The notice shall contain--
(A) * * *
* * * * * * *
(3) Waiver notice.--The Secretary shall notify the
[Chairperson and the Ranking Minority Member of the
Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the
House of Representatives] Chairpersons and Ranking
Members of the authorizing committees not later than 30
days prior to the granting of a waiver pursuant to
subsection (a)(2) to a guaranty agency that is not a
party to a voluntary flexible agreement.
* * * * * * *
(5) Modification notice.--The Secretary shall notify
the [Chairperson and the Ranking Minority Members of
the Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Workforce
of the House of Representatives] Chairpersons and
Ranking Members of the authorizing committees 30 days
prior to any modifications to an agreement under this
section.
* * * * * * *
SEC. 428B. FEDERAL PLUS LOANS.
(a) Authority To Borrow.--
(1) Authority and eligibility.--[Parents] A graduate
or professional student or the parents of a dependent
student shall be eligible to borrow funds under this
section in amounts specified in subsection (b), if--
(A) [the parents] the graduate or
professional student or the parents do not have
an adverse credit history as determined
pursuant to regulations promulgated by the
Secretary; and
(B) [the parents] the graduate or
professional student or the parents meet such
other eligibility criteria as the Secretary may
establish by regulation, after consultation
with guaranty agencies, eligible lenders, and
other organizations involved in student
financial assistance.
* * * * * * *
(b) Limitation Based on Need.--Any loan under this section
may be counted as part of the expected family contribution in
the determination of need under this title, but no loan may be
made to [any parent] any graduate or professional student or
any parent under this section for any academic year in excess
of (A) the student's estimated cost of attendance, minus (B)
other financial aid as certified by the eligible institution
under section 428(a)(2)(A). The annual insurable limit on
account of any student shall not be deemed to be exceeded by a
line of credit under which actual payments to the borrower will
not be made in any year in excess of the annual limit.
(c) PLUS Loan Disbursement.-- * * *
(1) * * *
(2) a check copayable to the eligible institution and
the [parent] graduate or professional student or parent
borrower.
(d) Payment of Principal and Interest.--
(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
during any period during which [the parent] the
graduate or professional student or the parent meets
the conditions required for a deferral under section
427(a)(2)(C) or 428(b)(1)(M).
* * * * * * *
SEC. 428C. FEDERAL CONSOLIDATION LOANS.
(a) Agreements With Eligible Lenders.--
(1) Agreement required for insurance coverage.-- * *
*
* * * * * * *
(b) Contents of Agreements, Certificates of Insurance, and
Loan Notes.--
(1) Agreements with lenders.-- * * *
(A) that, in the case of all lenders
described in subsection (a)(1), the lender will
make a consolidation loan to an eligible
borrower (on request of that borrower) only if
the borrower certifies that the borrower has no
other application pending for a loan under this
section [and (i) the lender holds an
outstanding loan of that borrower which is
selected by the borrower for consolidation
under this section, except that this clause
shall not apply in the case of a borrower with
multiple holders of loans under this part, or
(ii) the borrower certifies that the borrower
has sought and has been unable to obtain a
consolidation loan with income-sensitive
repayment terms from the holders of the
outstanding loans of that borrower (which are
so selected for consolidation];
* * * * * * *
(E) that the lender shall offer an income-
sensitive repayment schedule, established by
the lender in accordance with the regulations
promulgated by the Secretary, to the borrower
of any consolidation loan made by the lender on
or after July 1, 1994; [and]
(F) that the lender will disclose, in a clear
and conspicuous manner, to borrowers who
consolidate loans made under part E of this
title--
(i) that once the borrower adds the
borrower's Federal Perkins Loan to a
Federal Consolidation Loan, the
borrower will lose all interest-free
periods that would have been available,
such as those periods when no interest
accrues on the Federal Perkins Loan
while the borrower is enrolled in
school at least half-time, during the
grace period, and during periods when
the borrower's student loan repayments
are deferred;
(ii) that the borrower will no longer
be eligible for loan forgiveness of
Federal Perkins Loans under any
provision of section 465; and
(iii) the occupations described in
section 465(a)(2), individually and in
detail, for which the borrower will
lose eligibility for Federal Perkins
Loan forgiveness; and
[(F)](G) such other terms and conditions as
the Secretary or the guaranty agency may
specifically require of the lender to carry out
this section.
* * * * * * *
(e) Termination of Authority.--The authority to make loans
under this section expires at the close of September 30, [2004]
2012. Nothing in this section shall be construed to authorize
the Secretary to promulgate rules or regulations governing the
terms or conditions of the agreements and certificates under
subsection (b). Loans made under this section which are insured
by the Secretary shall be considered to be new loans made to
students for the purpose of section 424(a).
* * * * * * *
SEC. 428F. DEFAULT REDUCTION PROGRAM.
(a) Other Repayment Incentives.--
(1) Sale of loan.--
(A) Each guaranty agency shall enter into an
agreement with the Secretary which shall
provide that upon securing [consecutive
payments for 12 months] 9 payments made within
20 days of the due date during 10 consecutive
months of amounts owed on a loan for which the
Secretary has made a payment under paragraph
(1) of section 428(c), the guaranty agency
(pursuant to an agreement with the Secretary)
or the Secretary shall, if practicable, sell
the loan to an eligible lender. Such loan shall
not be sold to an eligible lender who has been
found by the guaranty agency or the Secretary
to have substantially failed to exercise the
due diligence required of lenders under this
part. Neither the guaranty agency nor the
Secretary shall demand from a borrower as
monthly payment amounts referred to in this
paragraph more than is reasonable and
affordable based upon the borrower's total
financial circumstances.
(B) * * *
(C) A guaranty agency may charge the borrower
and retain collection costs in an amount not to
exceed 18.5 percent of the outstanding
principal and interest at the time of sale of a
loan rehabilitated under subparagraph (A).
* * * * * * *
(b) * * *
* * * * * * *
(c) Financial and Economic Literacy.--Where appropriate as
determined by the institution of higher education in which a
borrower is enrolled, each program described in subsection (b)
shall include making available financial and economic education
materials for the borrower, including making the materials
available before, during, or after rehabilitation of a loan.
* * * * * * *
SEC. 428G. REQUIREMENTS FOR DISBURSEMENT OF STUDENTS LOANS.
(a) Multiple Disbursement Required.--
(1) Two disbursements required.-- * * *
* * * * * * *
(3) Special rule.--An institution whose cohort
default rate (as determined under section 435(m)) for
each of the 3 most recent fiscal years for which data
are available is less than 10 percent may disburse any
loan made, insured, or guaranteed under this part in a
single installment for any period of enrollment that is
not more than 1 semester, 1 trimester, 1 quarter, or 4
months. Notwithstanding section 422(d) of the Higher
Education amendments of 1998, this paragraph shall be
effective beginning on the date of enactment of the
Higher Education Amendments of 2005.
(b) Disbursement and Endorsement Requirements.--
(1) First year students.--The first installment of
the proceeds of any loan made, insured, or guaranteed
under this part that is made to a student borrower who
is entering the first year of a program of
undergraduate education, and who has not previously
obtained a loan under this part, shall not (regardless
of the amount of such loan or the duration of the
period of enrollment) be presented by the institution
to the student for endorsement until 30 days after the
borrower begins a course of study, but may be delivered
to the eligible institution prior to the end of that
30-day period. An institution whose cohort default rate
(as determined under section 435(m)) for each of the
three most recent fiscal years for which data are
available is less than 10 percent shall be exempt form
the requirements of this paragraph. Notwithstanding
section 422(d) of the Higher Education Amendments of
1998, the second sentence of this paragraph shall be
effective beginning on the date of enactment of the
Higher Education Amendments of 2005.
* * * * * * *
(e) Exclusion of Consolidation and Foreign Study Loans.--
the provisions of this section shall not apply in the case of a
loan made under section 428C[, made to a student to cover the
cost of attendance at an eligible institution outside the
United States], or made to a student to cover the cost of
attendance in a program of study abroad approved by the home
eligible institution if the home eligible institution has a
cohort default rate (as calculated under section 435(m)) of
less than 5 percent.
* * * * * * *
SEC. 428H. UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE-INCOME BORROWERS.
(a) In General.-- * * *
* * * * * * *
(d) Loan Limits.--
(1) In general.-- * * *
(2) Annual limits for independent, graduate, and
professional students.-- * * *
(A) * * *
* * * * * * *
(C) in the case of such student who is a
graduate or professional student attending an
eligible institution, [$10,000] $12,000; and
(D) in the case of a student enrolled in
coursework specified in sections 484(b)(3)(B)
and 484(b)(4)(B)--
(i) $4,000 for coursework necessary
or enrollment in an undergraduate
degree or certificate program, and, in
the case of a student who has obtained
a bac-calaureate degree, [$5,000]
$7,000 for coursework necessary for
enrollment in a graduate or
professional program; and
(ii) in the case of a student who has
obtained a baccalaureate degree,
[$5,000] $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;
except in cases where the Secretary determines, that a higher
amount is warranted in order to carry out the purpose of this
part with respect to students engaged in specialized training
requiring exceptionally high costs of education, but the annual
insurable limit per student shall not be deemed to be exceeded
by a line of credit under which actual payments by the lender
to the borrower will not be made in any years in excess of the
annual limit.
* * * * * * *
SEC. 430A. REPORTS TO CREDIT BUREAUS AND INSTITUTIONS OF HIGHER
EDUCATION.
(a) Agreements To Exchange Information.--For the purpose of
promoting responsible repayment of loans covered by Federal
loan insurance pursuant to this part or covered by guaranty
agreement pursuant to section 428, the Secretary, each guaranty
agency, eligible lender, and subsequent holder shall enter into
agreements [with credit bureau organizations] with each
consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis (as defined in section 603(p)
of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)) to
exchange information concerning student borrowers, in
accordance with the requirements of this section. For the
purpose of assisting such organizations in complying with the
Fair Credit Reporting Act, such agreements may provide for
timely response by the Secretary (concerning loans covered by
Federal loan insurance), by a guaranty agency, eligible lender,
or subsequent holder (concerning loans covered by a guaranty
agreement), or to requests from such organizations for response
to objections raised by borrowers. Subject to the requirements
of subsection (c), such agreements shall require the Secretary,
the guaranty agency, eligible lender, or subsequent holder, as
appropriate, to disclose to such organizations, with respect to
any loan under this part that has not been repaid by the
borrower--
(1) the type of loan made, insured, or guaranteed
under this title;
[1] (2) the total amount of loans made to any
borrower under this part and the remaining balance of
the loans;
(3) information concerning the repayment status of
the loan, which information shall be included 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.)
[(2)] (4) information concerning the date of any
default on the loan and the collection of the loan,
including information concerning the repayment status
of any defaulted loan on which the Secretary has made a
payment pursuant to section 430(a) or the guaranty
agency has made a payment to the previous holder of the
loan; [and]
[(3)] (5) the date of cancellation of the note upon
completion of repayment by the borrower of the loan or
payment by the Secretary pursuant to section 437[.] ;
and
(6) any other information required to be reported by
Federal law.
* * * * * * *
SEC. 432. LEGAL POWERS AND RESPONSIBILITIES.
(a) General Powers.-- * * *
* * * * * * *
(f) Audit of Financial Transactions.--
(1) Comptroller general and inspector general
authority.-- * * *
(A) * * *
* * * * * * *
(C) a representative sample of eligible
lenders under this part, upon the request of
[the Committee on Education and the Workforce
of the House of Representatives or the
Committee on Labor and Human Resources of the
Senate] either of the authorizing committees,
with respect to the payment of the special
allowance under section 438 in order to
evaluate the program authorized by this part.
* * * * * * *
(m) Common Forms and Formats.--
(1) Common guaranteed student loan application form
and promissory note.--
(A) In general.-- * * *
* * * * * * *
(D) Master promissory note.--
(i) In general.--The Secretary shall
develop and require the use of master
promissory note forms for loans made
under this part and part D. Such forms
shall be available for periods of
enrollment beginning not later than
July 1, 2000. Each form shall allow
eligible borrowers to receive, in
addition to initial loans, additional
loans for the same or subsequent
periods of enrollment through a student
confirmation process approved by the
Secretary. Such forms shall be used for
loans made under this part or part D as
directed by the Secretary. 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.
* * * * * * *
(n) Default Reduction Management.--
(1) Authorization.-- * * *
* * * * * * *
(3) Plan for use required.-- * * *
(A) * * *
* * * * * * *
(D) if the performance standard or goal is
impractical or infeasible, why that is the case
and what action is recommended, including
whether the goal should be changed or the
program altered or eliminated.
This report shall be submitted to the Appropriations Committees
of the House of Representatives and the Senate and to the
[Committee on Education and the Workforce of the House of
Representatives and the Committee on Labor and Human Resources
of the Senate] authorizing committees.
* * * * * * *
SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
(a) Required Disclosure Before Disbursement.-- * * *
* * * * * * *
(e) * * *
* * * * * * *
(f) Borrower Information and Privacy.--Each entity
participating in a program under this part that is subject to
subtitle A of title V of the Gramm-Leach-Bliley Act (15 U.S.C.
6801 et seq.) shall only use, release, disclose, sell,
transfer, or give student information, including the name,
address, social security number, or amount borrowed by a
borrower or a borrower's parent, in accordance with the
provisions of such subtitle.
(g) Loan Benefit Disclosures.--
(1) In general.--Each eligible lender, holder, or
servicer of a loan made, insured, or guaranteed under
this part shall provide the borrower with information
on the loan benefit repayment options the lender,
holder, or servicer offer, including information on
reductions in interest rates--
(A) by repaying the loan by automatic payroll
or checking account deduction;
(B) by completing a program of on-time
repayment; and
(C) under any other interest rate reduction
program.
(2) Information.--Such borrower information shall
include--
(A) any limitations on such options;
(B) explicit information on the reasons a
borrower may lose eligibility for such an
option;
(C) examples of the impact the interest rate
reductions will have on a borrower's time for
repayment and amount of repayment;
(D) upon the request of the borrower, the
effect the reductions in interest rates will
have with respect to the borrower's payoff
amount and time for repayment; and
(E) information on borrower recertification
requirements.
* * * * * * *
SEC. 433A. CONSUMER EDUCATION INFORMATION.
Each guaranty agency participating in a program under this
part working with the institutions of higher education served
by such guaranty agency (or in the case of an institution of
higher education that provides loans exclusively through part
D, the institution working with a guaranty agency or with the
Secretary) shall develop and make available a quality
educational program and materials to provide training for
students in budgeting and financial management, including debt
management and other aspects of financial literacy, such as the
cost of using very high interest loans to pay for postsecondary
education, particularly as budgeting and financial management
relates to student loan programs authorized by this title.
Nothing in this section shall be construed to prohibit a
guaranty agency from using an existing program or existing
materials to meet the requirement of this section. The
activities described in this section shall be considered
default reduction activities for the purposes of section 422.
* * * * * * *
SEC. 435. DEFINITIONS FOR STUDENT LOAN INSURANCE PROGRAM.
As used in this part:
(a) Eligible Institution.--
(1) In general.-- * * *
* * * * * * *
(d) Eligible Lender.--
(1) In general.-- * * *
* * * * * * *
(2) Additional requirements of eligible
institutions.--To be an eligible lender under this
part, an eligible institution--
(A) * * *
* * * * * * *
(E) shall not have a cohort default rate (as
defined in section 435(m)) greater than 15
percent; [and]
[(F) shall use the proceeds from special
allowance payments and interest payments from
borrowers for need-based grant programs, except
for reasonable reimbursement for direct
administrative expenses;]
(F) shall use the proceeds from special
allowance payments, interest payments from
borrowers, proceeds from the sale of a loan
made, insured, or guaranteed under this part,
and all other proceeds related to such a loan
that are furnished to the eligible institution
or any entity affiliated (directly or
indirectly) with the eligible institution, for
need based grant programs, except that such
payments and proceeds may be used for
reasonable reimbursement for direct
administrative expenses;
(G) shall have met the requirements of
subparagraphs (A) through (F), and made loans
under this part, on or before August 31, 2005;
(H) shall hold each loan the eligible
institution makes under this part to a student
enrolled at the eligible institution until the
student enters into a grace period described in
section 427(a)(2)(B) or 428(b)(7);
(I) shall use the proceeds from the sale of a
loan made under this part, for need based grant
aid programs, except that such proceeds--
(i) shall not be used to provide a
grant to a student for an academic year
in an amount that is more than the
student's cost of attendance for the
academic year; and
(ii) shall supplement and not
supplant other Federal, State, and
institutional grant aid; and
(J) shall not be a foundation or alumni
organization;
* * * * * * *
SEC. 437. REPAYMENT BY THE SECRETARY OF LOANS OF BANKRUPT, DECEASED, OR
DISABLED BORROWERS; TREATMENT OF BORROWERS
ATTENDING [CLOSED SCHOOLS OR FALSELY CERTIFIED AS
ELIGIBLE TO BORROW] SCHOOLS THAT FAIL TO PROVIDE A
REFUND, ATTENDING CLOSED SCHOOLS, OR FALSELY
CERTIFIED AS ELIGIBLE TO BORROW.
(a) Repayment in Full for Death and Disability.-- * * *
* * * * * * *
(c) Discharge.--
(1) In general.--If a borrower who received, on or
after January 1, 1986, a loan made, insured, or
guaranteed under this part and the student borrower, or
the student on whose behalf a parent borrowed, is
unable to complete the program in which such student is
enrolled due to the closure of the institution or if
such student's eligibility to borrow under this part
was falsely certified by the eligible institution or
was falsely certified as a result of a crime of
identity theft, or if the institution failed to make a
refund of loan proceeds which the institution owed to
such student's lender, then the Secretary shall
discharge the borrower's liability on the loan
(including interest and collection fees) by repaying
the amount owed on the loan and shall subsequently
pursue any claim available to such borrower against the
institution and its affiliates and principals or settle
the loan obligation pursuant to the financial
responsibility authority under subpart 3 of part H. In
the case of a discharge based upon a failure to refund,
the amount of the discharge shall not exceed that
portion of the loan which should have been refunded.
The Secretary shall report to the [Committee on
Education and the Workforce of the House of
Representatives and the Committee on Labor and Human
Resources of the Senate] authorizing committees
annually as to the dollar amount of loan discharges
attributable to failures to make refunds.
* * * * * * *
SEC. 438. SPECIAL ALLOWANCES.
(a) Findings.-- * * *
* * * * * * *
(b) Computation and Payment.--
(1) Quarterly payment based on unpaid balance.-- * *
*
* * * * * * *
(2) Rate of special allowance.--(A) * * *
(B)(i) * * *
* * * * * * *
(iv) Notwithstanding clauses (i) and (ii), the
quarterly rate of the special allowance for holders of
loans which are financed with funds obtained by the
holder from the issuance of obligations originally
issued on or after October 1, 1993, or refunded after
September 30, 2004, [and before January 1, 2006,] the
income from which is excluded from gross income under
the Internal Revenue Code of 1986, shall be the
quarterly rate of the special allowance established
under subparagraph (A), (E), (F), (G), (H), or (I) as
the case may be. Such rate shall also apply to holders
of loans which were made or purchased with funds
obtained by the holder from collections or default
reimbursements on, or interest or other income
pertaining to, eligible loans made or purchased with
funds described in the preceding sentence of this
subparagraph or from income on the investment of such
funds.
(v) Notwithstanding clauses (i) and (ii), the
quarterly rate of the special allowance shall be the
rate determined under subparagraph (A), (E), (F), (G),
(H), or (I) of this paragraph, or paragraph (4), as the
case may be, for a holder of loans that--
(I) * * *
* * * * * * *
(II) are--
(aa) financed by such an obligation
that, after September 30, 2004, [and
before January 1, 2006,] has matured or
been retired or defeased;
(bb) refinanced after September 30,
2004, [and before January 1, 2006,]
with funds obtained from a source other
than funds described in subclause (I)
of this clause; or
(cc) sold or transferred to any other
holder after September 30, 2004[, and
before January 1, 2006].
* * * * * * *
(5) Definition of eligible loan.-- * * *
(A)(i) * * *
* * * * * * *
(B) which is insured under this part, or made
under a program covered by an agreement under
section 428(b) of this Act.
[As used in this section the term ``eligible loan'' includes
all loans subject to section 428I.]
* * * * * * *
(c) Origination Fees From Students.--
(1) Deduction from interest and special allowance
subsidies.-- * * *
* * * * * * *
[(2) Amount of origination fees.--] (2) Amount of
origination fees._Subject to paragraph (6) of this
subsection, with respect to any loan (including loans
made under sections 428H, but excluding loans made
under sections 428C and 439(o)) for which a completed
note or other written evidence of the loan was sent or
delivered to the borrower for signing on or after 10
days after the date of enactment of the Postsecondary
Student Assistance Amendments of 1981, each eligible
lender under this part is authorized to charge the
borrower an origination fee in an amount not to exceed
3.0 percent of the principal amount of the loan, to be
deducted proportionately from each installment payment
of the proceeds of the loan prior to payment to the
borrower. Except as provided in paragraph (8), a lender
that charges an origination fee under this paragraph
shall assess the same fee to all student borrowers.
(A) In general.--
(B) Subsequent reductions.--Subparagraph (A)
shall be applied to loans made under this part
(other than loans made under sections 428C and
439(o)) by substituting ``2.50 percent'' for
``3.0 percent'' with respect to loans for which
the first disbursement of principal is made on
or after July 1, 2007.
* * * * * * *
(d) Loan Fees From Lenders.--
(1) Deduction from interest and special allowance
subsidies.--
(A) In general.-- * * *
* * * * * * *
[(2) Amount of loan fees.--With respect to any loan
under this part for which the first disbursement was
made on or after October 1, 1993, the amount of the
loan fee which shall be deducted under paragraph (1)
shall be equal to 0.50 percent of the principal amount
of the loan.]
(2) Amount of loan fees.--
(A) In general.--Except as provided in
subparagraph (B), with respect to any loan made
under this part for which the first
disbursement was made on or after October 1,
1993, the amount of the loan fee that shall be
deducted under paragraph (1) shall be equal to
0.50 percent of the principal amount of the
loan.
(B) Consolidation loans.--With respect to any
loan made under section 428C on or after April
1, 2006, the amount of the loan fee that shall
be deducted under paragraph (1) shall be equal
to 1.0 percent of the principal amount of the
loan.
* * * * * * *
SEC. 439. STUDENT LOAN MARKETING ASSOCIATION.
(a) Purpose.-- * * *
* * * * * * *
(d) Authority of Association.--
(1) In general.--The Association is authorized,
subject to the provisions of this section--
(A) * * *
* * * * * * *
(E) to undertake any other activity which the
Board of Directors of the Association
determines to be in furtherance of the programs
of insured student loans authorized under this
part or will otherwise support the credit needs
of students, except that--
(i) * * *
* * * * * * *
(iii) not later than 30 days prior to
the initial implementation of a program
undertaken pursuant to this
subparagraph (E), the Association shall
[advise the Chairman and the Ranking
Member on the Committee on Labor and
Human Resources of the Senate and the
Chairman and the Ranking Member of the
Committee on Education and Labor of the
House of Representatives] advise the
Chairpersons and Ranking Members of the
authorizing committees in writing of
its plans to offer such program and
shall provide information relating to
the general terms and conditions of
such program.
* * * * * * *
(r) Safety and Soundness of Association.--
(1) Reports by the association.-- * * *
* * * * * * *
(3) Monitoring of safety and soundness.--The
Secretary of the Treasury shall conduct such studies as
may be necessary to monitor the financial safety and
soundness of the Association. In the event that the
Secretary of the Treasury determines that the financial
safety and soundness of the Association is at risk, the
Secretary of the Treasury shall [inform the Chairman
and ranking minority member of the Committee on Labor
and Human Resources of the Senate, the Chairman and
ranking minority member of the Committee on Education
and Labor of the House of Representatives,] inform the
Chairpersons and Ranking Members of the authorizing
committees and the Secretary of Education of such
determination and identify any corrective actions that
should be taken to ensure the safety and soundness of
the Association.
(5) Capital restoration plan--
(A) Submission, approval, and
implementation.--* * *
(B) Disapproval.--If the Secretary of the
Treasury does not approve a capital restoration
plan as provided in subparagraph (A), then not
later than the earlier of the date the
Secretary of the Treasury disapproves of such
plan by written notice to the Association or
the expiration of the 30-day consideration
period referred to in subparagraph (A) (as such
period may have been extended by mutual
agreement), the Secretary of the Treasury shall
submit the Association's capital restoration
plan, in the form most recently proposed to the
Secretary of the Treasury by the Association,
together with a report on the Secretary of the
Treasury's reasons for disapproval of such plan
and an alternative capital restoration [plan,
to the Chairman and ranking minority member of
the Senate Committee on Labor and Human
Resources and to the Chairman and ranking
minority member of the House Committee on
Education and Labor] plan, to the Chairpersons
and Ranking Members of the authorizing
committees. A copy of such submission
simultaneously shall be sent to the Association
and the Secretary of Education by the Secretary
of the Treasury.
* * * * * * *
(6) Substantial capital ratio reduction.--
(A) Additional plan required.-- * * *
(B) Disapproval.--If the Secretary of the
Treasury disapproves a capital restoration plan
or modified plan submitted pursuant to
subparagraph (A), then, not later than the
earlier of the date the Secretary of the
Treasury disapproves of such plan or modified
plan (by written notice to the Association) or
the expiration of the 30-day consideration
period described in subparagraph (A) (as such
period may have been extended by mutual
agreement), the Secretary of the Treasury shall
prepare and submit an alternative capital
restoration plan, together with a report on his
reasons for disapproval of the Association's
plan or modified [plan, to the Chairman and
ranking minority member of the Committee on
Labor and Human Resources of the Senate and to
the Chairman and ranking minority member of the
Committee on Education and Labor of the House
of Representatives] plan, to the Chairpersons
and Ranking Members of the authorizing
committees. A copy of such submission
simultaneously shall be sent to the Association
and the Secretary of Education by the Secretary
of the Treasury. The Association, within 5 days
after receipt from the Secretary of the
Treasury of such submission, shall submit to
the [Chairmen and ranking minority members of
such Committees] Chairpersons and Ranking
Members of the authorizing committees, and the
Secretary of the Treasury, a written response
to such submission, setting out fully the
nature and extent of the Association's
agreement or disagreement with the Secretary of
the Treasury with respect to the disapproved
plan and the alternative plan of the Secretary
of the Treasury and any findings of the
Secretary of the Treasury.
* * * * * * *
(8) Critical capital standard.--(A) * * *
* * * * * * *
(C) Immediately upon a determination under
subparagraph (A) or (B) to implement a capital
restoration plan, the Secretary of the Treasury shall
submit the capital restoration plan to be [implemented
to the Chairman and ranking minority member of the
Committee on Labor and Human Resources of the Senate,
the Chairman and ranking minority member of the
Committee on Education and Labor of the House of
Representatives, and] implemented to the Chairpersons
and Ranking Members of the authorizing committees, and
to the Secretary of Education.
* * * * * * *
(10) Review by secretary of education.--The Secretary
of Education shall review the Secretary of the
Treasury's submission required pursuant to paragraph
(5)(B), (6)(B), or (8) and shall submit a report within
30 [days to the Chairman and ranking minority member of
the Senate Committee on Labor and Human Resources and
to the Chairman and ranking minority member of the
House Committee on Education and Labor] days to the
Chairpersons and Ranking Members of the authorizing
committees--
(A) * * *
* * * * * * *
(s) Charter Sunset.--
(1) Application of provisions.-- * * *
(2) Sunset plan.--
(A) Plan submission by the association.--Not
later than July 1, 2007, the Association shall
submit to the Secretary of the [Treasury and to
the Chairman and Ranking Member of the
Committee on Labor and Human Resources of the
Senate and the Chairman and Ranking Member of
the Committee on Economic and Educational
Opportunities of the House of Representatives]
Treasury and to the Chairpersons and Ranking
Members of the authorizing committees, a
detailed plan for the orderly winding up, by
July 1, 2013, of business activities conducted
pursuant to the charter set forth in this
section. Such plan shall--
(i) * * *
* * * * * * *
(B) Amendment of the plan by the
association.--The Association shall from time
to time amend such plan to reflect changed
circumstances, and submit such amendments to
the Secretary of the [Treasury and to the
Chairman and Ranking Minority Member of the
Committee on Labor and Human Resources of the
Senate and Chairman and Ranking Minority Member
of the Committee on Economic and Educational
Opportunities of the House of Representatives]
Treasury and to the Chairpersons and Ranking
Members of the authorizing committees. In no
case may any amendment extend the date for full
implementation of the plan beyond the
dissolution date provided in paragraph (3).
* * * * * * *
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 441. PURPOSE; APPROPRIATIONS AUTHORIZED.
(a) Purpose.-- * * *
(b) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this part, [$1,000,000,000 for
fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years.] such sums as may be necessary
for fiscal year 2006 and each of the 5 succeeding fiscal years.
* * * * * * *
SEC. 442. ALLOCATION OF FUNDS.
(a) Allocation Based on Previous Allocation.--(1) * * *
* * * * * * *
(c) Determination of Institution's Need.--(1) * * *
* * * * * * *
(4)(A) * * *
* * * * * * *
(D) The allowance for books and supplies described in
subparagraph (A)(iii) is equal to [$450]. $600
* * * * * * *
SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
(a) Agreements Required.-- * * *
(b) Contents of Agreements.--An agreement entered into
pursuant to this section shall--
(1) * * *
* * * * * * *
(2) provide that funds granted an institution of
higher education, pursuant to section 443, may be used
only to make payments to students participating in
work-study programs, except that--
[(A) for fiscal year 1999, an institution
shall use at least 5 percent of the total
amount of funds granted to such institution
under this section in any fiscal year to
compensate students employed in community
service (including a reasonable amount of time
spent in travel or training directly related to
such community service), except that the
Secretary may waive this subparagraph if the
Secretary determines that enforcing it would
cause hardship for students at an institution;]
[(B)] (A) for fiscal year 2000 and succeeding
fiscal years, an institution shall use at least
7 percent of the total amount of funds granted
to such institution under this section for such
fiscal year to compensate students employed in
community service, and shall ensure that not
less than 1 tutoring or family literacy project
(as described in subsection (d)) is included in
meeting the requirement of this subparagraph,
except that the Secretary may waive [this
subparagraph if the Secretary determines that
enforcing this subparagraph would cause
hardship for students at the institution;] and
this subparagraph if--
(i) the Secretary determines that
enforcing this subparagraph would cause
hardship for students at the
institution; or
(ii) the institution certifies to the
Secretary that 15 percent or more of
its total full-time enrollment
participates in community service
activities described in section 441(c)
or tutoring and literacy activities
described in subsection (d) of this
section;
[(C)] (B) an institution may use a portion of
the sums granted to it to meet administrative
expenses in accordance with section 489 of this
Act, may use a portion of the sums granted to
it to meet the cost of a job location and
development program in accordance with section
446 of this part, and may transfer funds in
accordance with the provisions of section 488
of this Act;
* * * * * * *
SEC. 446. JOB LOCATION AND DEVELOPMENT PROGRAMS.
(a) Agreements Required.--(1) The Secretary is authorized
to enter into agreements with eligible institutions under which
such institution may use not more than 10 percent or [$50,000]
$75,000 of its allotment under section 442, whichever is less,
to establish or expand a program under which such institution,
separately or in combination with other eligible institutions,
locates and develops jobs, including community service jobs,
for currently enrolled students.
* * * * * * *
SEC. 448. WORK COLLEGES.
(a) Purpose.-- * * *
(b) Sources and Use Funds.--
(1) Source of funds.--In addition to the sums
appropriated [under subsection (f)] for this section
under section 441(b), funds allocated to the
institution under part C and part E of this title may
be transferred for use under this section to provide
flexibility in strengthening the self-help-through-work
element in financial aid packaging.
(2) Activities authorized.--From the sums
appropriated [pursuant to subsection (f)] for this
section under section 441(b), and from the funds
available under paragraph (1), eligible institutions
may, following approval of an application under
subsection (c) by the Secretary--
(A) * * *
(B) * * *
(C) support existing and new model student
volunteer community service projects associated
with local institutions of higher education,
such as operating drop-in resource centers that
are staffed by students and that link people in
need with the resources and opportunities
necessary to become self-sufficient;
[(C)] (D) carry out activities described in
section 443 or 446;
[(D)] (E) be used for the administration,
development and assessment of comprehensive
work-learning programs, including--
(i) * * *
* * * * * * *
[(E)] (F) coordinate and carry out joint
projects and activities to promote work service
learning; and
[(F)] (G) * * *
(c) Application.--Each eligible institution may submit an
application for funds authorized [by subsection (f) to use
funds under subsection (b)(1)] for this section under section
441(b) or to use funds under subsection (b)(1),
* * * * * * *
[(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $5,000,000 for the
fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years.]
* * * * * * *
SEC. 455. TERMS AND CONDITIONS OF LOANS.
(a) In General.--
(1) Parallel terms, conditions, benefits, and
amounts.-- * * *
* * * * * * *
(b) Interest Rate.--
(1) Rates for fdsl and fdusl.-- * * *
* * * * * * *
(8) Repayment incentives.--
(A) In general.-- * * *
(B) Accountability.--Prior to publishing
regulations proposing repayment incentives, the
Secretary shall ensure the cost neutrality of
such reductions. The Secretary shall not
prescribe such regulations in final form unless
an official report from the Director of the
Office of Management and Budget to the
Secretary and a comparable report from the
Director of the Congressional Budget Office to
the Congress each certify that any such
reductions will be completely cost neutral.
Such reports shall be transmitted to the
[Committee on Labor and Human Resources of the
Senate and the Committee on Education and the
Workforce of the House of Representatives]
authorizing committees not less than 60 days
prior to the publication of regulations
proposing such reductions.
* * * * * * *
(c) Loan Fee.--The Secretary [shall] is authorized to
charge the borrower of a loan made under this part an
origination fee of [4.0 percent of the principal amount of
loan] not less than 1 percent and not more than 3 percent of
the principal amount of the loan, except that the Secretary
shall charge the borrower of a Federal Direct PLUS Loan an
origination fee of 4.0 percent of the principal amount of the
loan. Beginning on July 1, 2007, the preceding sentence shall
be applied by substituting ``2.5 percent'' for ``3 percent''.
* * * * * * *
(e) Income Contingent Repayment.--
(1) Information and procedures.-- * * *
* * * * * * *
(7) Repayment plan for public sector employees.--
(A) In general.--The Secretary shall forgive
the balance due on any loan made under this
part or section 428C(b)(5) for a borrower--
(i) who has made 120 payments on such
loan pursuant to income contingent
repayment; and
(ii) who is employed, and was
employed for the 10-year period in
which the borrower made the 120
payments described in clause (i), in a
public sector job.
(B) Public sector job.--In this paragraph,
the term `public sector job' means a full-time
job in emergency management, government, public
safety, law enforcement, public health,
education (including early childhood
education), or public interest legal services
(including prosecution or public defense).
(8) Return to standard repayment.--A borrower who is
repaying a loan made under this part pursuant to income
contingent repayment may choose, at any time, to
terminate repayment pursuant to income contingent
repayment and repay such loan under the standard
repayment plan.
* * * * * * *
(f) Deferment.--
(1) Effect on principal and interest.-- * * *
* * * * * * *
(2) Eligibility.--A borrower of a loan made under
this part shall be eligible for a deferment during any
period--
(A) during which the borrower-- * * *
* * * * * * *
(B) * * *
(C) not in excess of 3 years during which the
borrower--
(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; or
[(C)] (D) not in excess of 3 years during
which the Secretary determines, in accordance
with regulations prescribed under section
435(o), that the borrower has experienced or
will experience an economic hardship.
* * * * * * *
SEC. 458. FUNDS FOR ADMINISTRATIVE EXPENSES.
(a) Administrative Expenses.--
(1) In general.-- * * *
(A) * * *
(B) account maintenance fees payable to
guaranty agencies under part B and calculated
in accordance with subsections (b) and (c),
not to exceed (from such funds not otherwise appropriated)
[$617,000,000 in fiscal year 1999, $735,000,000 in fiscal year
2000, $770,000,000 in fiscal year 2001, $780,000,000 in fiscal
year 2002, and $795,000,000 in fiscal year 2003.] $904,000,000
in fiscal year 2006, $943,000,000 in fiscal year 2007,
$983,000,000 in fiscal year 2008, $1,023,000,000 in fiscal year
2009, $1,064,000,000 in fiscal year 2010, and $1,106,000,000 in
fiscal year 2011.
* * * * * * *
(c) Special Rules.--
(1) Fee cap.--The total amount of account maintenance
fees payable under this section--
[(A) for fiscal year 1999, shall not exceed
$177,000,000;
[(B) for fiscal year 2000, shall not exceed
$180,000,000;
[(C) for fiscal year 2001, shall not exceed
$170,000,000;
[(D) for fiscal year 2002, shall not exceed
$180,000,000; and
[(E) for fiscal year 2003, shall not exceed
$195,000,000.]
(A) for fiscal year 2006, shall not exceed
$271,000,000;
(B) for fiscal year 2007, shall not exceed
$293,000,000;
(C) for fiscal year 2008, shall not exceed
$315,000,000;
(D) for fiscal year 2009, shall not exceed
$336,000,000;
(E) for fiscal year 2010, shall not exceed
$356,000,000; and
(F) for fiscal year 2011, shall not exceed
$378,000,000.
* * * * * * *
PART E--FEDERAL PERKINS LOANS
SEC. 461. APPROPRIATIONS AUTHORIZED.
(a) Program Authority.-- * * *
(b) Authorization of Appropriations.--(1) For the purpose
of enabling the Secretary to make contributions to student loan
funds established under this part, there are authorized to be
appropriated [$250,000,000 for fiscal year 1999 and such sums
as may be necessary for each of the 4 succeeding fiscal years.]
such sums as may be necessary for fiscal year 2006 and each of
the 5 succeeding fiscal years.
(2) In addition to the funds authorized under paragraph
(1), there are hereby authorized to be appropriated such sums
for [fiscal year 2003] fiscal year 2012 and each of the 5
succeeding fiscal years as may be necessary to enable students
who have received loans for academic years ending prior to
[October 1, 2003] October 1, 2012, to continue or complete
courses of study.
* * * * * * *
SEC. 464. TERMS OF LOANS.
(a) Terms and Conditions.--(1) * * *
* * * * * * *
(b) Demonstration of Need and Eligibility Required.--(1) A
loan from a student loan fund assisted under this part may be
made only to a student who demonstrates financial need in
accordance with part F of this title, who meets the
requirements of section 484, and who provides the institution
with the student's drivers license number, if any, at the time
of application for the loan. A student who is in default on a
loan under this part shall not be eligible [for an additional
loan under this part] for additional aid under this title
unless such loan meets one of the conditions for exclusion
under section 462(g)(1)(E).
* * * * * * *
(c) Contents of Loan Agreement.--(1) Any agreement between
an institution and a student for a loan from a student loan
fund assisted under this part-- * * *
* * * * * * *
(2)(A) No repayment of principal of, or interest on, any
loan from a student loan fund assisted under this part shall be
required during any period--
(i) during which the borrower-- * * *
* * * * * * *
(ii) * * *
(iii) not in excess of 3 years during which the
borrower--
(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;
[(iii)] (iv) not in excess of 3 years for any reason
which the lender determines, in accordance with
regulations prescribed by the Secretary under section
435(o), has caused or will cause the borrower to have
an economic hardship; or
[(iv)] (v) during which the borrower is engaged in
service described in section 465(a)(2);
and provides that any such period shall not be included in
determining the 10-year period described in subparagraph (A) of
paragraph (1).
* * * * * * *
(e) Forbearance.--The Secretary shall ensure that, upon
[written] request, an institution of higher education shall
grant a borrower forbearance of principal and interest or
principal only, renewable at 12-month intervals for a period
not to exceed 3 years, on such terms as are otherwise
consistent with the regulations issued by the Secretary and
agreed upon in writing by the parties to the loan, if--
(1) * * *
* * * * * * *
SEC. 465. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.
(a) Cancellation of Percentage of Debt Based on Years of
Qualifying Service.--(1) * * *
(2) Loans shall be canceled under paragraph (1) for
service--
(A) * * *
(B) as a full-time staff member in a preschool
program carried on under the [Head Start Act which]
Head Start Act, or in a prekindergarten or child care
program that is licensed or regulated by the State,
that is operated for a period which is comparable to a
full school year in the locality if the salary of such
staff member is not more than the salary of a
comparable employee of the local educational agency;
* * * * * * *
(H) as a full-time nurse or medical technician
providing health care services; [or]
(I) as a full-time employee of a public or private
nonprofit child or family service agency who is
providing, or supervising the provision of, services to
high-risk children who are from low-income communities
and the families of such children[.];
(J) as a full-time faculty member at a Tribal College
or University, as that term is defined in section 316;
(K) 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 title I
of the Elementary and Secondary Education Act
of 1965; or
(ii) a public library that serves a
geographic area that contains 1 or more schools
eligible for assistance under title I of the
Elementary and Secondary Education Act of 1965;
or
(L) as a full-time speech language therapist, if the
therapist has a master's degree and is working
exclusively with schools that are eligible for
assistance under title I of the Elementary and
Secondary Education Act of 1965.
* * * * * * *
(3)(A) The percent of a loan which shall be canceled under
paragraph (a) of this subsection is--
(i) in the case of service described in subparagraph
(A), (C), (F), (G), (H), [or (I)] (I), (J), (K), or (L)
of paragraph (2), at the rate of 15 percent for the
first or second year of such service, 20 percent for
the third or fourth year of such service, and 30
percent for the fifth year of such service;
* * * * * * *
SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.
(a) In General.--After September 30, [2003] 2011, and not
later than March 31, [2004] 2012, there shall be a capital
distribution of the balance of the student loan fund
established under this part by each institution of higher
education as follows:
(1) The Secretary shall first be paid an amount which
bears the same ratio to the balance in such fund at the
close of September 30, [2003] 2011, as the total amount
of the Federal capital contributions to such fund by
the Secretary under this part bears to the sum of such
Federal contributions and the institution's capital
contributions to such fund.
* * * * * * *
(c) Distribution of Excess Capital.--(1) Upon a finding by
the institution or the Secretary prior to October 1, [2004]
2012, that the liquid assets of a student loan fund established
pursuant to an agreement under this part exceed the amount
required for loans or otherwise in the foreseeable future, and
upon notice to such institution or to the Secretary, as the
case may be, there shall be, subject to such limitations as may
be included in regulations of the Secretary or in such
agreement, a capital distribution from such fund. Such capital
distribution shall be made as follows:
(A) * * *
* * * * * * *
SEC. 372. COST OF ATTENDANCE.
For the purpose of this title, the term ``cost of
attendance'' means--
(1) * * *
* * * * * * *
[(4) for less than half-time students (as determined
by the institution) tuition and fees and an allowance
for only books, supplies, and transportation (as
determined by the institution) and dependent care
expenses (in accordance with paragraph (8));]
(4) for less than half-time students (as determined
by the institution), tuition and fees and an allowance
for only--
(A) books, supplies, and transportation (as
determined by the institution);
(B) dependent care expenses (determined in
accordance with paragraph (8)); and
(C) room and board costs (determined in
accordance with paragraph (3)), except that a
student may receive an allowance for such costs
under this subparagraph for not more than 3
semesters or the equivalent, of which not more
than 2 semesters or the equivalent may be
consecutive;
* * * * * * *
(11) for a student engaged in a work experience under
a cooperative education program, an allowance for
reasonable costs associated with such employment (as
determined by the institution); [and]
(12) for a student who receives a loan under this or
any other Federal law, or, at the option of the
institution, a conventional student loan incurred by
the student to cover a student's cost of attendance at
the institution, an allowance for the actual cost of
any loan fee, origination fee, or insurance premium
charged to such student or such parent on such loan, or
the average cost for any such fee or premium charged by
the Secretary, lender, or guaranty agency making or
insuring such loan, as the case may be[.] ; and
(13) at the option of the institution, for a student
in a program requiring professional licensure or
certification, the one time cost of obtaining the first
professional credentials (as determined by the
institution).
* * * * * * *
SEC. 475. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.
(a) Computation of Expected Family Contribution.-- * * *
* * * * * * *
(g) Student Contribution From Available Income.--
(1) In general.-- * * *
* * * * * * *
(2) Adjustment to student income.--The adjustment to
student income is equal to the sum of--
(A) * * *
* * * * * * *
(D) an income protection allowance of
[$2,200] $3,000 (or a successor amount
prescribed by the Secretary under section 478);
* * * * * * *
(h) Student Contribution From Assets.--The student
contribution from assets is determined by calculating the net
assets of the student and multiplying such amount by [35] 20
percent, except that the result shall not be less than zero.
* * * * * * *
SEC. 476. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT
DEPENDENTS OTHER THAN A SPOUSE.
(a) Computation of Expected Family Contribution.-- * * *
* * * * * * *
(b) Family's Contribution From Available Income.--
(1) In general.--The family's contribution from
income is determined by--
(A) deducting from total income (as defined
in section 480)--
(i) * * *
* * * * * * *
(iv) an income protection allowance
of the following amount (or a successor
amount prescribed by the Secretary
under section 478)--
(I) [$5,000] $6,050 for
single students;
(II) [$5,000] $6,050 for
married students where both are
enrolled pursuant to subsection
(a)(2); and
(III) [$8,000] $9,700 for
married students where one is
enrolled pursuant to subsection
(a)(2);
* * * * * * *
(c) Family Contribution From Assets.--
(1) In general.-- * * *
* * * * * * *
(4) Asset conversion rate.--The asset conversion rate
is [35] 20 percent.
* * * * * * *
SEC. 477. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITH DEPENDENTS
OTHER THAN A SPOUSE.
(a) Computation of Expected Family Contribution.-- * * *
* * * * * * *
(c) Family's Contribution From Assets.--
(1) In general.-- * * *
* * * * * * *
(4) Asset conversion rate.--The asset conversion rate
is [12] 7 percent.
* * * * * * *
SEC. 478. REGULATIONS; UPDATED TABLES.
(a) Authority To Prescribe Regulations Restricted.-- * * *
* * * * * * *
(b) Income Protection Allowance.--
(1) Revised tables.--For each academic year after
academic year 1993-1994, the Secretary shall publish in
the Federal Register a revised table of income
protection allowances for the purpose of sections
475(c)(4) and 477(b)(4). Such revised table shall be
developed by increasing each of the dollar amounts
contained in the table in each such section by a
percentage equal to the estimated percentage increase
in the Consumer Price Index (as determined by the
Secretary) between December 1992 and the December next
preceding the beginning of such academic year, and
rounding the result to the nearest $10. For the 2007-
2008 academic year, the Secretary shall revise the
tables in accordance with this paragraph, except that
the Secretary shall increase the amounts contained in
the table in section 477(b)(4) by a percentage equal to
the greater of the estimated percentage increase in the
Consumer Price Index (as determined under the preceding
sentence) or 5 percent.
(2) Revised amounts.--For each academic year after
academic year [2000-2001] 2007-2008, the Secretary
shall publish in the Federal Register revised income
protection allowances for the purpose of sections
475(g)(2)(D) and 476(b)(1)(A)(iv). Such revised
allowances shall be developed by increasing each of the
dollar amounts contained in such section by a
percentage equal to the estimated percentage increase
in the Consumer Price Index (as determined by the
Secretary) between December 1999 and the December next
preceding the beginning of such academic year, and
rounding the result to the nearest $10.
* * * * * * *
SEC. 479. SIMPLIFIED NEEDS TESTS.
(a) Simplified Application Section.--
(1) In general.-- * * *
* * * * * * *
(b) Simplified Needs Test.--
(1) Eligibility.--An applicant is eligible to file a
simplified form containing the elements required by
paragraph (2) if--
(A) in the case of an applicant who is a
dependent student--
[(i) the student's parents file or
are eligible to file a form described
in paragraph (3) or certify that they
are not required to file an income tax
return and the student files or is
eligible to file such a form or
certifies that the student is not
required to file an income tax return;
and]
(i) the student's parents--
(I) file, or are eligible to
file, a form described in
paragraph (3);
(II) certify that the parents
are not required to file a
Federal income tax return; or
(III) received, or the
student received, benefits at
some time during the previous
12-month period under a means-
tested Federal benefit program
as defined under subsection
(d); and
* * * * * * *
(B) in the case of an applicant who is an
independent student--
[(i) the student (and the student's
spouse, if any) files or is eligible to
file a form described in paragraph (3)
or certifies that the student (and the
student's spouse, if any) is not
required to file an income tax return;
and]
(i) the student (and the student's
spouse, if any)--
(I) files, or is eligible to
1 file, a form described in
paragraph (3);
(II) certifies that the
student (and the student's
spouse, if any) is not required
to file a Federal income tax
return; or
(III) received benefits at
some time during the previous
12-month period under a means-
tested Federal benefit program
as defined under subsection
(d); and
* * * * * * *
(3) Qualifying forms.--[A student or family files a
form described in this subsection, or subsection (c),
as the case may be, if the student or family,
respectively, files] In the case of an independent
student, the student, or in the case of a dependent
student, the family, files a form described in this
subsection, or subsection (c), as the case may be, if
the student or family, as appropriate, files--
* * * * * * *
(c) Zero Expected Family Contribution.--The Secretary shall
consider an applicant to have an expected family contribution
equal to zero if--
(1) in the case of a dependent student--
[(A) the student's parents file, or are
eligible to file, a form described in
subsection (b)(3), or certify that the parents
are not required to file an income tax return
and the student files, or is eligible to file,
such a form, or certifies that the student is
not required to file an income tax return; and]
(A) the student's parents--
(i) file, or are eligible to file, a
form described in subsection (b)(3);
(ii) certify that the parents are not
required to file a Federal income tax
return; or
(iii) received, or the student
received, benefits at some time during
the previous 12-month period under a
means-tested Federal benefit program as
defined under subsection (d); and
[(B) the sum of the adjusted gross income of
the parents is less than or equal to the
maximum amount of income (rounded annually to
the nearest thousand dollars) that may be
earned in 1992 or the current year, whichever
is higher, in order to claim the maximum
Federal earned income credit; or]
(B) the sum of the adjusted gross income of
the parents is less than or equal to $20,000;
or
[(2) in the case of an independent student with
dependents other than a spouse--
[(A) the student (and the student's spouse,
if any) files, or is eligible to file, a form
described in subsection (b)(3), or certifies
that the student (and the student's spouse, if
any) is not required to file an income tax
return; and
[(B) the sum of the adjusted gross income of
the student and spouse (if appropriate) is less
than or equal to the maximum amount of income
(rounded annually to the nearest thousand
dollars) that may be earned in 1992 or the
current year, whichever is higher, in order to
claim the maximum Federal earned income
credit.]
(A) the student (and the student's spouse, if
any)--
(i) files, or is eligible to file, a
form described in subsection (b)(3);
(ii) certifies that the student (and
the student's spouse, if any) is not
required to file a Federal income tax
return; or
(iii) received benefits at some time
during the previous 12-month period
under a means-tested Federal benefit
program as defined under subsection
(d); and
(B) the sum of the adjusted gross income of
the student and spouse (if appropriate) is less
than or equal to $20,000.
An individual is not required to qualify or file for the earned
income credit in order to be eligible under this subsection.
(d) Definitions.--In this section:
(1) Means-tested federal benefit program.--In this
section, the term means-tested Federal benefit
program'' means a mandatory spending program of the
Federal Government, other than a program under this
title, in which eligibility for the 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, and may include such
programs as--
(A) the supplemental security income program
under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.);
(B) the food stamp program under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
(C) the free and reduced price school lunch
program established under the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.);
(D) the program of block grants for States
for temporary assistance for needy families
established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
(E) the special supplemental nutrition
program for women, infants, and children
established by section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786); and
(F) other programs identified by the
Secretary.
* * * * * * *
SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.
(a) In General.--Nothing in this part shall be interpreted
as limiting the authority of the financial aid administrator,
on the basis of adequate documentation, to make adjustments on
a case-by-case basis to the cost of attendance or the values of
the data items required to calculate the expected student or
parent contribution (or both) to allow for treatment of an
individual eligible applicant with special circumstances.
However, this authority shall not be construed to permit aid
administrators to deviate from the contributions expected in
the absence of special circumstances. Special circumstances may
include tuition expenses at an elementary or secondary school,
medical or dental expenses not covered by insurance, unusually
high child care costs, recent unemployment of a family member
or an independent student, the number of parents enrolled at
least half-time in a degree, certificate, or other program
leading to a recognized educational credential at an
institution with a program participation agreement under
section 487, a change in housing status that results in
homelessness, or other changes in a family's income, a family's
assets, or a student's status. Special circumstances shall be
conditions that differentiate an individual student from a
class of students rather than conditions that exist across a
class of students. Adequate documentation for such adjustments
shall substantiate such special circumstances of individual
students. In addition, nothing in this title shall be
interpreted as limiting the authority of the student financial
aid administrator in such cases 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. No student or parent shall be charged a fee for
collecting, processing, or delivering such supplementary
information.
* * * * * * *
SEC. 480. DEFINITIONS.
As used in this part:
(a) Total Income.--(1) * * *
* * * * * * *
(f) Assets.--(1) The term ``assets'' means cash on hand,
including the amount in checking and savings accounts, time
deposits, money market funds, trusts, stocks, bonds, other
securities, mutual funds, tax shelters, qualified education
benefits (except as provided in paragraph (3)), and the net
value of real estate, income producing property, and business
and farm assets.
* * * * * * *
(3) A qualified education benefit shall not be considered an
asset of a student for purposes of section 475.
(4) In determining the value of assets in a determination of
need under this title (other than for subpart 4 of part A), the
value of a qualified education benefit shall be--
(A) the refund value of any tuition credits or
certificates purchased under a qualified education
benefit; and
(B) in the case of a program in which contributions
are made to an account that is established for the
purpose of meeting the qualified higher education
expenses of the designated beneficiary of the account,
the current balance of such account.
(5) In this subsection:
(A) Qualified education benefit.--The term `qualified
education benefit' means--
(i) a qualified tuition program (as defined
in section 529(b)(1)(A) of the Internal Revenue
Code of 1986) or other prepaid tuition plan
offered by a State; and
(ii) a Coverdell education savings account
(as defined in section 530(b)(1) of the
Internal Revenue Code of 1986).
(B) Qualified higher education expenses.--The term
``qualified higher education expenses'' has the meaning
given the term in section 529(e) of the Internal
Revenue Code of 1986.
(j) Other Financial Assistance[; Tuition Prepayment
Plans].--(1) * * *
[(2)(A) Except as provided in subparagraph (B), for
purposes of determining a student's eligibility for funds under
this title, tuition prepayment plans shall reduce the cost of
attendance (as determined under section 472) by the amount of
the prepayment, and shall not be considered estimated financial
assistance.
[(B) If the institutional expense covered by the prepayment
must be part of the student's cost of attendance for accounting
purposes, the prepayment shall be considered estimated
financial assistance.]
[(3)] (2) Notwithstanding paragraph (1), a tax credit taken
under section 25A of the Internal Revenue Code of 1986 shall
not be treated as estimated financial assistance for purposes
of section 471(3).
(3) Notwithstanding paragraph (1) and section 472,
assistance not received under this title may be excluded from
both estimated financial assistance and cost of attendance, if
that assistance is designated by the State providing that
assistance to offset a specific component of the cost of
attendance. If that assistance is excluded from estimated
financial assistance or cost of attendance, that assistance
shall be excluded from both calculations.
* * * * * * *
PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE PROGRAMS
SEC. 481. DEFINITIONS.
(a) Academic and Award Year.--(1) * * *
(2) For the purpose of any program under this title, the
term ``academic year'' shall require a minimum of 30 weeks of
instructional time, and, with respect to an undergraduate
course of study, shall require that during such minimum period
of instructional time a full-time student is expected to
complete at least 24 semester or trimester hours or 36 quarter
hours at an institution that measures program length in credit
hours, or at least 900 clock hours at an institution that
measures program length in clock hours. The Secretary may
reduce such minimum of 30 weeks to not less than 26 weeks for
good cause, as determined by the Secretary on a case-by-case
basis, in the case of an institution of higher education that
provides a 2-year or 4-year program of instruction for which
the institution awards an associate or baccalaureate degree and
that measures program length in credit hours or clock hours.
(b) Eligible Program.--(1) * * *
* * * * * * *
(2)(A) * * *
* * * * * * *
(3) For purposes of this title, the term ``eligible program''
includes an instructional program that utilizes direct
assessment of student learning or recognizes the direct
assessment of student learning by others, if such assessment is
consistent with the accreditation of the institution or program
utilizing the results of the assessment, in lieu of credit
hours or clock hours as the measure of student learning. In the
case of a program being determined eligible for the first time
under this paragraph, such determination shall be made by the
Secretary before such program is considered to be an eligible
program.
(c) Third Party Servicer.-- * * *
* * * * * * *
(d) Definitions for Military Deferments.--For purposes of
parts B, D, and E of this title:
(1) Active duty.--The term ``active duty'' has the
meaning given such term in section 101(d)(1) of title
10, United States Code, except that such term does not
include active duty for training or attendance at a
service school.
(2) Military operation.--The term ``military
operation'' means a contingency operation as such term
is defined in section 101(a)(13) of title 10, United
States Code.
(3) National emergency.--The term ``national
emergency'' means the national emergency by reason of
certain terrorist attacks declared by the President on
September 14, 2001, or subsequent national emergencies
declared by the President by reason of terrorist
attacks.
(4) Serving on active duty.--The term ``serving on
active duty during a war or other military operation or
national emergency'' means service by an individual who
is--
(A) a Reserve of an Armed Force ordered to
active duty under section 12301(a), 12301(g),
12302, 12304, or 12306 of title 10, United
States Code, or any retired member of an Armed
Force ordered to active duty under section 688
of such title, for service in connection with a
war or other military operation or national
emergency, regardless of the location at which
such active duty service is performed; and
(B) any other member of an Armed Force on
active duty in connection with such emergency
or subsequent actions or conditions who has
been assigned to a duty station at a location
other than the location at which such member is
normally assigned.
(5) Qualifying national guard duty.--The term
``qualifying National Guard duty during a war or other
military operation or national emergency'' means
service as a member of the National Guard on full-time
National Guard duty (as defined in section 101(d)(5) of
title 10, United States Code) under a call to active
service authorized by the President or the Secretary of
Defense for a period of more than 30 consecutive days
under section 502(f) of title 32, United States Code,
in connection with a war, other military operation, or
a national emergency declared by the President and
supported by Federal funds.
* * * * * * *
SEC. 482. MASTER CALENDAR.
(a) Secretary Required To Comply With Schedule.-- * * *
* * * * * * *
(d) Notice to Congress.--The Secretary shall notify the
[Committee on Labor and Human Resources of the Senate and the
Committee on Education and Labor of the House of
Representatives] authorizing committees when a deadline
included in the calendar described in subsection (a) is not
met. Nothing in this section shall be interpreted to penalize
institutions or deny them the specified times allotted to
enable them to return information to the Secretary based on the
failure of the Secretary to adhere to the dates specified in
this section.
(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.
* * * * * * *
SEC. 483. FORMS AND REGULATIONS.
[(A) Common Financial Aid Form Development and
Processing.--
[(1) Single form required.--The Secretary, in
cooperation with representatives of agencies and
organizations involved in student financial assistance,
shall produce, distribute, and process free of charge a
common financial reporting form to be used to determine
the need and eligibility of a student for financial
assistance under parts A through E of this title (other
than under subpart 4 of part A). The Secretary shall
include on the form developed under this subsection
such data items as the Secretary determines are
appropriate for inclusion. Such items shall be selected
in consultation with States to assist in the awarding
of State financial assistance. In no case shall the
number of such data items be less than the number
included on the form on the date of enactment of the
Higher Education Amendments of 1998. Such form shall
satisfy the reuirements of section 401(d) of this
title.
[(2) Charges to students and parents for use of form
prohibited.--The common financial reporting form
prescribed by the Secretary under paragraph (1) shall
be produced, distributed, and processed by the
Secretary and no parent or student shall be charged a
fee for the collection, processing, or delivery of
financial aid through the use of such form. The need
and eligibility of a student for financial assistance
under parts A through E of this title (other than under
subpart 4 of part A) may only be determined by using
the form developed by the Secretary pursuant to
paragraph (1) of this subsection. No student may
receive assistance under parts A through E of this
title (other than under subpart 4 of part A), except by
use of the form developed by the Secretary pursuant to
this section. No data collected on a form for which a
fee is charged shall be used to complete the form
prescribed under paragraph (1).
[(3) Distribution of data.--Institutions of higher
education, guaranty agencies, and States shall receive,
without charge, the data collected by the Secretary
using the form developed pursuant to this section 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.
[(4) Contracts for collection and processing.--(A)
The Secretary shall, to the extent practicable, enter
into not less than 5 contracts with States,
institutions of higher education, or private
organizations for the purposes of the timely collection
and processing of the form developed pursuant to
paragraph (1) and the timely delivery of the data
submitted on such form. The Secretary shall use such
contracts to assist States and institutions of higher
education with the collection of additional data
required to award State or institutional financial
assistance, except that the Secretary shall not include
these additional data items on the common financial
reporting form developed pursuant to this section. The
Secretary shall include in each such contract a
requirement that--
[(i) any charges by the contractor to the
student of parent for additional data items
required by a State or institution for any
purpose (regardless of the method of
collection) shall be reasonable and shall not
exceed the marginal cost of collecting,
processing, and delivering such additional
data, taking into account any payment received
by the contractor to produce, distribute, and
process the common financial reporting form
prescribed by the Secretary pursuant to
paragraph (1); and
[(ii) the contractor will require any person
or entity to whom the contractor provides such
additional data to agree not to collect from
any student or parent any charge that would not
be permitted under this subparagraph for any
such additional data.
[(B) To the extent practicable, the Secretary shall
ensure that at least one contractor, or a portion of
one contract, under this paragraph will serve graduate
and professional students.
[(C) As part of the procurement process for the 1993-
1994 award year, and for all procurements thereafter
pertaining to the contracts under this paragraph, the
Secretary shall require all entities competing for such
contracts to comply with all requirements of this
subsection and to--
[(i) use the common financial reporting form
as prescribed in paragraph (1), which shall be
clearly identified as the ``Free Application
for Federal Student Aid''; and
[(ii) use a common, simplified reapplication
form as the Secretary shall prescribe pursuant
to subsection (b), in each award year.
[(D) The Secretary shall reimburse all approved
contractors at a reasonable predetermined rate for
processing such applications, for issuing eligibility
reports, and for carrying out other services of
requirements that may be prescribed by the Secretary.
[(E) All approved contractors shall be required to
adhere to all editing, processing, and reporting
requirements established by the Secretary to ensure
consistency.
[(F) No approved contractor shall enter into
exclusive arrangements with guarantors, lenders,
secondary markets, or institutions of higher education
for the purpose of reselling or sharing of data
collected for the multiple data entry process. All data
collected under a contract issued by the Secretary
pursuant to this paragraph for the multiple data entry
process is the exclusive property of the Secretary and
may not be transferred to a third party by an approved
contractor without the Secretary's express written
approval.
[(5) Electronic forms.--(A) The Secretary, in
cooperation with representatives of agencies and
organizations involved in student financial assistance,
including private computer software providers, shall
develop an electronic version of the form described in
paragraph (1). As permitted by the Secretary, such an
electronic version shall not require a signature to be
collected at the time such version is submitted, if a
signature is subsequently submitted by the applicant.
The Secretary shall prescribe such version not later
than 120 days after the date of enactment of the Higher
Education Amendments of 1998.
[(B) Nothing in this section shall be construed to
prohibit the use of the form developed by the Secretary
pursuant to subparagraph (A) by an eligible
institution, eligible lender, guaranty agency, State
grant agency, private computer software providers, a
consortium thereof, or such other entities as the
Secretary may designate.
[(C) No fee shall be charged to students in
connection with the use of the electronic version of
the form, or of any other electronic forms used in
conjunction with such form in applying for Federal or
State student financial assistance.
[(D) The Secretary shall ensure that data collection
complies with section 552a of title 5, United States
Code, and thatany entity using the electronic version
of the form developed by the Secretary pursuant to subparagraph (A)
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 form. Data collected by such version of the
form 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 version of the form 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.
[(6) 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 eligible institutions 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) which
are 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 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.
[(7) Parent's social security number and birth
date.--The Secretary is authorized to include on the
form developed under this subsection space for the
social security number and birth date of parents of
dependent students seeking financial assistance under
this title.
[(b) Streamlined Reapplication Process.--(1) The Secretary
shall develop a streamlined reapplication form and process,
including electronic reapplication process, consistent with the
requirements of subsection (a), for those recipients who apply
for financial aid funds under this title in the next succeeding
academic year subsequent to the initial year in which such
recipients apply.
[(2) The Secretary shall develop appropriate mechanisms to
support reapplication.
[(3) The Secretary shall determine, in cooperation with
States, institutions of higher education, agencies and
organizations involved in student financial assistance, the
data elements that can be updated from the previous academic
year's application.
[(4) Nothing in this title shall be interpreted as limiting
the authority of the Secretary to reduce the number of data
elements required of reapplicants.
[(5) Individuals determined to have a zero family
contribution pursuant to section 479 shall not be required to
provide any financial data, except that which is necessary to
determine eligibility under that section.]
(a) Common Financial Aid Form Development and Processing.--
(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 to determine the need and eligibility of a student
for financial assistance under parts A through E of
this title (other than under subpart 4 of part A). The
forms shall be made available to applicants in both
paper and electronic formats and shall be referred to
(except as otherwise provided in this subsection) as
the ``Free Application for Federal Student Aid'', or
``FAFSA''.
(2) Paper format.--
(A) In general.--Subject to subparagraph (C),
the Secretary shall produce, distribute, and
process common forms in paper format to meet
the requirements of paragraph (1). The
Secretary shall develop a common paper form for
applicants who do not meet the requirements of
or do not wish to use the process described in
subparagraph (B).
(B) EZ fafsa.--
(i) In general.--The Secretary shall
develop and use a simplified paper
application form, to be known as the
``EZ FAFSA'', to be used for applicants
meeting the requirements under section
479(c).
(ii) Reduced data requirements.--The
EZ FAFSA shall permit an applicant to
submit for purposes of determining
financial need and eligibility, only
the data elements required to make a
determination of student eligibility
and whether the applicant meets the
requirements of section 479(c).
(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 the
Secretary shall not include a State's
data if that State does not permit its
applicants for State assistance to use
the EZ FAFSA.
(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 (9).
(v) Testing.--The Secretary shall
conduct appropriate field testing on
the EZ FAFSA.
(C) Phasing out the full paper form for
students who do not meet the requirements of
the ez fafsa.--
(i) In general.--The Secretary shall
make all efforts to encourage all
applicants to utilize the electronic
forms described in paragraph (3).
(ii) Phaseout of full paper fafsa.--
Not later than 5 years after the date
of enactment of the Higher Education
Amendments of 2005, to the extent
practicable, the Secretary shall phase
out the printing of the long paper form
created under subparagraph (A) and used
by applicants who do not meet the
requirements of the EZ FAFSA described
in subparagraph (B).
(iii) Availability of full paper
fafsa.--
(I) In general.--Both prior
to and after the phaseout
described in clause (ii), the
Secretary shall maintain on the
Internet printable versions of
the paper forms described in
subparagraphs (A) and (B).
(II) Accessibility.--The
printable versions described in
subclause (I) shall be made
easily accessible and
downloadable to students on the
same Web site used to provide
students with the common
electronic forms described in
paragraph (3).
(III) Submission of forms.--
The Secretary shall conduct a
study to determine the
feasibility of using downloaded
forms to ensure sufficient
quality to meet the processing
requirements of this section.
Following the completion of the
study, the Secretary shall
enable, to the extent
practicable, students to submit
a form described in this clause
that is downloaded from the
Internet and printed, in order
to meet the filing requirements
of this section and to receive
financial assistance under this
title.
(iv) Use of savings.--
(I) In general.--The
Secretary shall utilize any
realized savings accrued by
phasing out the full paper
FAFSA and moving more
applicants to the common
electronic forms, to improve
access to the electronic forms
for applicants meeting the
requirements of section 479(c).
(II) Report.--The Secretary
shall report annually to the
authorizing committees on--
(aa) the steps taken
to improve access to
the common electronic
forms for applicants
meeting the
requirements of section
479(c); and
(bb) the phaseout of
the long common paper
form described in
subparagraph (A).
(3) Electronic format.--
(A) In general.--The Secretary shall produce,
distribute, and process common forms in
electronic format and make such forms available
through a broadly accessible website to meet
the requirements of paragraph (1). The
Secretary shall develop common electronic forms
for applicants who do not meet the requirements
of subparagraph (B). The Secretary shall
include on the common electronic forms space
for information that needs to be submitted from
the applicant to be eligible for State
financial assistance, as provided under
paragraph (5), except the Secretary shall not
require applicants to complete data required by
any State other than the applicant's State of
residence. The Secretary shall use all
available technology to ensure that a student
using a common electronic form answers only the
minimum number of questions necessary.
(B) Simplified electronic applications.--
(i) In general.--The Secretary shall
develop and use a simplified electronic
application form to be used by
applicants meeting the requirements of
section 479(c) and an additional,
separate simplified electronic
application form to be used by
applicants meeting the requirements
under section 479(b).
(ii) Reduced data requirements.--The
simplified electronic application forms
shall permit an applicant to submit for
purposes of determining financial need
and eligibility, only the data elements
required to make a determination of
student eligibility and whether the
applicant meets the requirements of
subsection (b) or (c) of section 479.
(iii) State data.--The Secretary
shall include on the simplified
electronic application forms such data
items as may be necessary to award
State financial assistance, as provided
under paragraph (5), except the
Secretary shall not require applicants
to complete data required by any State
other than the applicant's State of
residence and shall not include a
State's data if such State does not
permit its applicants for State
assistance to use the simplified
electronic application form described
in this subparagraph.
(iv) Free availability and
processing.--The provisions of
paragraph (6) shall apply to the
simplified electronic application
forms, and the data collected by means
of the simplified electronic
application forms shall be available to
institutions of higher education,
guaranty agencies, and States in
accordance with paragraph (9).
(v) Testing.--The Secretary shall
conduct appropriate field testing on
the forms developed under this
subparagraph.
(C) 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, a guaranty agency, a State
grant agency, a private computer software
provider, a consortium of such entities, or
such other entity as the Secretary may
designate. Data collected by 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.
(D) 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.
(E) Signature.--Notwithstanding any other
provision of this Act, the Secretary may permit
an electronic 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 (F).
(F) Personal identification numbers
authorized.--The Secretary is authorized to
assign to applicants personal identification
numbers--
(i) to enable the applicants to use
such numbers as a signature for
purposes of completing a form under
this paragraph; and
(ii) for any purpose determined by
the Secretary to enable the Secretary
to carry out this title.
(4) Streamlined reapplication process.--
(A) In general.--The Secretary shall develop
streamlined reapplication forms and processes,
including both paper and electronic
reapplication processes, consistent with the
requirements of this subsection, for an
applicant who applies for financial assistance
under this title in the next succeeding
academic year subsequent to an academic year in
which such applicant applied for financial
assistance under this title.
(B) Mechanisms for reapplication.--The
Secretary shall develop appropriate mechanisms
to support reapplication.
(C) Identification of updated data.--The
Secretary shall determine, in cooperation with
States, institutions of higher education, and
agencies and organizations involved in student
financial assistance, the data elements that
can be updated from the previous academic
year's application.
(D) 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.
(E) 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
replication form, except that which is
necessary to determine eligibility under such
section.
(5) State requirements.--
(A) In general.--Except as provided in
paragraphs (2)(B)(iii), (3)(A), and
(3)(B)(iii), 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,
except as provided in paragraphs (2)(B)(iii),
(3)(A), and (3)(B)(iii). The number of such
data items shall not be less than the number
included on the form for the 2005-2006 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 process to determine
which data items the States require to award
need-based State aid.
(C) Encourage use of forms.--The Secretary
shall encourage States to take such steps as
are necessary to encourage the use of
simplified application forms, including those
described in paragraphs (2)(B) and (3)(B), for
applicants who meet the requirements of
subsection (b) or (c) of section 479.
(D) Federal register notice.--The Secretary
shall publish, on an annual basis, a notice in
the Federal Register requiring States to inform
the Secretary--
(i) if the State plans to use the
FAFSA to collect data to determine
eligibility for State need-based
financial aid;
(ii) of the State-specific data that
the State requires for delivery of
State need-based financial aid; and
(iii) if the State agency is unable
to permit applicants to utilize the
simplified application forms described
in paragraph (2)(B) or (3)(B).
(E) State notification to the secretary.--
(i) In general.--Each State agency
shall notify the Secretary--
(I) whether the State permits
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;
and
(II) of the State-specific
data that the State requires
for delivery of State need-
based financial aid.
(ii) Acceptance of 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, then the State shall
notify the Secretary if it is not
permitted to do so because of State law
or agency policy. The notification
shall include an acknowledgment that
State-specific questions will not be
included on a form described in
paragraph (2)(B) or (3)(B).
(iii) Lack of notification by the
state.--If a State does not notify the
Secretary pursuant to clause (i), the
Secretary shall--
(I) permit residents of that
State to complete simplified
application forms under
paragraphs (2)(B) and (3)(B);
and
(II) not require any resident
of such State to complete any
data previously required by
that State under this section.
(F) Restriction.--The Secretary shall not
require applicants to complete any financial or
non-financial data that are not required by the
applicant's State, except as may be required
for applicants who use the paper forms
described in subparagraphs (A) and (B) of
paragraph (2).
(6) Charges to students and parents for use of forms
prohibited.--The common financial reporting forms
prescribed by the Secretary under this subsection 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. 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 pursuant to this subsection. No student may
receive financial assistance under parts A through E
(other than under subpart 4 of part A), except by use
of a form developed by the Secretary pursuant to this
subsection. No data collected on a paper or electronic
form or other document that the Secretary determines
was created to replace a form prescribed under this
subsection and therefore violates the integrity of a
simplified and free financial aid application process
and for which a fee is charged shall be used to
complete the form prescribed under this subsection. No
person, commercial entity, or other entity shall
request, obtain, or utilize an applicant's personal
identification number assigned under paragraph (3)(F)
for purposes of submitting an application on an
applicant's behalf.
(7) Application processing cycle.--The Secretary
shall--
(A) enable students to submit forms created
under this subsection in order to meet the
filing requirements of this section and in
order to receive financial assistance from
programs under this title; and
(B) enable students to submit forms created
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.
(8) Early estimates.--The Secretary shall permit an
applicant to complete a form described in this
subsection in the years prior to enrollment in order to
obtain from the Secretary a nonbinding estimate of the
applicant's expected family contribution, as defined in
section 473. Such applicant shall be permitted to
update information submitted on a form described in
this subsection using the process required under
paragraph (4).
(9) Distribution of data.--Institutions of higher
education, guaranty agencies, and States shall receive,
without charge, the data collected by the Secretary
using the form developed pursuant to 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.
(10) 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) which are 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 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.
(11) Parent's social security number and birth
date.--The Secretary is authorized to include on the
form developed under this subsection space for the
social security number and birth date of parents of
dependent students seeking financial assistance under
this title.
[(c)] (b) Information to Committees of Congress.--Copies of
all rules, regulations, guidelines, instructions, and
application forms published or promulgated pursuant to this
title shall be provided to the [Committee on Labor and Human
Resources of the Senate and the Committee on Education and the
Workforce of the House of Representatives] authorizing
committees at least 45 days prior to their effective date.
[(d)] (c) Toll-Free Information.--The Secretary shall
contract for, or establish, and publicize a toll-free telephone
service to provide timely and accurate information to the
general public. The information provided shall include specific
instructions on completing the application form for assistance
under this title. Such service shall also include a service
accessible by telecommunications devices for the deaf (TDD's)
and shall, in addition to the services provided for in the
previous sentence, refer such students to the national
clearinghouse on postsecondary education [that is authorized
under section 685(d)(2)(C) of the Individuals with Disabilities
Education Act.] or other appropriate provider of technical
assistance and information on postsecondary educational
services that is authorized under section 663(a) of the
Individuals with Disabilities Education Act. Not later than 2
years after the date of enactment of the Higher Education
Amendments of 2005, the Secretary shall test and implement, to
the extent practicable, a toll-free telephone based system to
permit applicants who meet the requirements of 479(c) to submit
an application over such system.
[(e)] (d) Preparer.--Any financial aid application required
to be made under this title shall include the name, signature,
address or employer's address, social security number or
employer identification number, and organizational affiliation
of the preparer of such financial aid application.]
(e) 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 the common financial reporting forms
described in subsection (a) if the preparer satisfies
the requirements of this subsection.
(2) Preparer identification.--Any common financial
reporting form required to be made under this title
shall include the name, signature, address or
employer's address, social security number or employer
identification number, and organizational affiliation
of the preparer of such common financial reporting
form.
(3) Additional requirements.--A preparer that
provides consultative or preparation services pursuant
to this subsection shall--
(A) clearly inform individuals upon initial
contact (including advertising in clear and
conspicuous language on the website of the
preparer, including by providing a link
directly to the website described in subsection
(a)(3), if the preparer provides such services
through a website) that the common financial
reporting forms that are required to determine
eligibility for financial assistance under
parts A through E (other than subpart 4 of part
A) may be completed for free via paper or
electronic forms provided by the Secretary;
(B) refrain from producing or disseminating
any form other than the forms produced by the
Secretary under subsection (a); and
(C) not charge any fee to any individual
seeking such services who meets the
requirements of subsection (b) or (c) of
section 479.
(4) Special rule.--Nothing in this Act shall be
construed to limit preparers of the common financial
reporting forms required to be made under this title
who 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.
* * * * * * *
SEC. 484. STUDENT ELIGIBILITY.
(a) In General.--* * *
* * * * * * *
(d) Students Who Are Not High School Graduates.--* * *
(1) * * *
* * * * * * *
(3) * * *
(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 6 credit hours or the equivalent
coursework that are applicable toward a degree or
certificate offered by the institution of higher
education.
* * * * * * *
[(l) Courses Offered Through Telecommunications.--
[(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 in whole or in
part through telecommunications and leads to a
recognized certificate for a program of study
of 1 year or longer, or a recognized associate,
baccalaureate, or graduate degree, conferred by
such institution, shall not be considered to be
enrolled in correspondence courses unless the
total amount of telecommunications and
correspondence courses at such institution
equals or exceeds 50 percent of the total
amount of all courses at the institution.
[(B) Requirement.--An institution of higher
education referred to in subparagraph (A) is an
institution of higher education--
[(i) that is not an institute or
school described in section 521(4)(C)
of the Carl D. Perkins Vocational and
Applied Technology Education Act; and
[(ii) for which at least 50 percent
of the programs of study offered by the
institution lead to the award of a
recognized associate, baccalaureate, or
graduate degree.
[(2) Restriction or 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
telecommunications instruction results in a
substantially reduced cost of attendance to such
student.
[(3) Special rule.--For award years prior to the date
of enactment of this subsection, the Secretary shall
not take any compliance, disallowance, penalty, or
other action 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.
[(4) Definition.--For the purposes of this
subsection, the term ``telecommunications'' means the
use of television, audio, or computer transmission,
including open broadcast, closed circuit, cable,
microwave, or satellite, audio conferencing, computer
conferencing, or video cassettes or discs, except that
such term does not include a course that is delivered
using video cassette or disc recordings at such
institution and that is not delivered in person to
other students of that institution.]
(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 associate,
baccalaureate, or 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
Vocational and Technical Education Act of 1998.
(2) Restriction or 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 prior to the date
of enactment of this subsection, the Secretary shall
not take any compliance, disallowance, penalty, or
other action 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.
(4) Definition.--In this subsection, the term
``distance education'' has the meaning given the term
in section 102.
* * * * * * *
(r) Suspension of Eligibility for Drug-Related Offenses.--
(1) In general.--A student who has been convicted of
any offense under any Federal or State law involving
the possession of a controlled substance, while such
student is enrolled in an institution of higher
education and receiving financial assistance under this
title, or sale of a controlled substance shall not be
eligible to receive any grant, loan, or work assistance
under this title during the period beginning on the
date of such conviction and ending after the interval
specified in the following table:
If convicted of an offense
involving:
The possession of a Ineligibility period is:
controlled substance while
the student is enrolled in
an institution of higher
education and receiving
financial assistance under
this title:
First offense.......... 1 year
Second offense......... 2 years
Third offense.......... Indefinite.
The sale of a controlled Ineligibility period is:
substance:
First offense.......... 2 years
Second offense......... Indefinite.
(2) * * *
* * * * * * *
(3) Interaction with fafsa.--The Secretary shall not
require a student to provide information regarding the
student's possession of a controlled substance on the
Free Application for Federal Student Aid described in
section 483(a).
[(3)] (4) Definitions.--In this subsection, the term
``controlled substance'' has the meaning given the term
in section 102(6) of the Controlled Substances Act (21
U.S.C. 802(6)).
SEC. 484A. STATUTE OF LIMITATIONS, AND STATE COURT JUDGMENTS.
(a) In General.-- * * *
* * * * * * *
(b) Assessment of Costs and Other Charges.--Notwithstanding
any provision of State law to the contrary--
(1) a borrower who has defaulted on a loan made under
this title shall be required to pay, in addition to
other charges specified in this title, reasonable cost;
[and]
(2) in collection any obligation arising from a loan
made under part B of this title, a guaranty agency or
the Secretary shall not be subject to a defense raised
by any borrower based on a claim of infancy[.]; and
(3) in collecting any obligation arising from a loan
made under part E of this title, 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.
(c) * * *
(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. 484B. INSTITUTIONAL REFUNDS.
(a) Return of Title IV Funds.--
(1) In general.-- * * *
(2) Leave of absence.--
(A) Leave not treated as withdrawal.--In the
case of a student who takes [a leave of] 1 or
more leaves of absence from an institution for
not more than a total of 180 days in any 12-
month period, the institution may consider the
student as not having withdrawn from the
institution during the leave of absence, and
not calculate the amount of grant and loan
assistance provided under this title that is to
be returned in accordance with this section
if--
(i) * * *
* * * * * * *
(3) Calculation of amount of title iv assistance
earned.--
(A) In general.-- * * *
* * * * * * *
(C) Percentage and amount not earned.-- * * *
[(i) determining the complement of
the percentage of grant or loan
assistance under this title] grant
assistance under subparts 1 and 3 of
part A, or loan assistance under parts
B, D, and E, that has been earned by
the student described in subparagraph
(B); and
(b) Return of Title IV Program Funds.--
(1) Responsibility of the institution.-- * * *
* * * * * * *
(3) * * *
* * * * * * *
(4) Time frame.--Not later than 45 days after the
date of an institution's determination that a student
withdrew from the institution, the institution shall--
(A) return the amount required under
paragraph (1);
(B) notify the student of the applicable
requirements regarding the overpayment of grant
and loan assistance and
(C) notify the student of the student's
eligibility for post-withdrawal disbursements.
(c) Withdrawal Date.--
(1) In general.-- * * *
* * * * * * *
(2) Special rule.--Notwithstanding paragraph (1), if
the institution determines that a student did not begin
the withdrawal process, or otherwise notify the
institution of the intent to withdraw, due to illness,
accident, grevious personal loss, or other such
circumstances beyond the student's control, the
institution [may determine the appropriate withdrawal
date.] may determine--
(A) the appropriate withdrawal date; and
(B) that the requirements of this section do
not apply to the student.
(d) Percentage of the Payment Period or Period of
Enrollment Completed.-- * * *
(1) * * *
(2) in the case of a program that is measured in
clock hours, by dividing the total number of clock
hours comprising the payment period or period of
enrollment for which assistance is awarded into the
number of [clock hours--
[(A) completed by the student in that period
as of the day the student withdrew; or
[(B) scheduled to be completed as of the day
the student withdrew, if the clock hours
completed in the period are not less than a
percentage, to be determined by the Secretary
in regulations, of the hours that were
scheduled to be completed by the student in the
period.] clock hours scheduled to be completed
by the student in that period as of the day the
student withdrew.
* * * * * * *
SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--(1) * * *
(A) * * *
* * * * * * *
(N) that enrollment in a program of study abroad
approved for credit by the home institution may be
considered enrollment in the home institution for
purposes of applying for Federal student financial
assistance; [and]
(O) the campus crime report prepared by the
institution pursuant to subsection (f), including all
required reporting categories[.];
(P) student body diversity at the institution,
including information on the percentage of enrolled,
full-time students who are--
(i) male;
(ii) female;
(iii) from a low-income background; and
(iv) a self-identified member of a major
racial or ethnic group;
(Q) 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; and
(R) the types of graduate and professional education
in which graduates of the institution's 4-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.
* * * * * * *
[(4) For purposes of this section, institutions may 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 services, on
official church missions, or with a recognized foreign aid
service of the Federal Government.]
(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, the
institution may 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.
* * * * * * *
(6) * * *
(7) The information disclosed under subparagraph (L) of
paragraph (1), or reported under subsection (e), shall include
information disaggregated by gender, by each major racial and
ethnic subgroup, and by low-income background status as
measured by Federal Pell Grant eligibility, if the number of
students in such subgroup or with such status is sufficient to
yield statistically reliable information and reporting would
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.
(b) Exit Counseling for Borrowers.--(1)(A) * * *
* * * * * * *
(2)(A) * * *
* * * * * * *
(3) Each eligible institution shall, during the exit
interview required by this subsection, provide to a borrower of
a loan made under part B, D, or E a clear and conspicuous
notice describing the general effects of using a consolidation
loan to discharge the borrower's student loans, including--
(A) the effects of consolidation on total interest to
be paid, fees to be paid, and length of repayment;
(B) the effects of consolidation on a borrower's
underlying loan benefits, including loan forgiveness,
cancellation, and deferment;
(C) the ability for the borrower to prepay the loan,
pay on a shorter schedule, and to change repayment
plans, and that borrower benefit programs may vary
among different loan holders;
(D) the tax benefits for which the borrower may be
eligible; and
(E) the consequences of default.
* * * * * * *
(d) Departmental Publication of Descriptions of Assistance
Programs.--(1) * * *
(2) The Secretary, to the extent the information is
available, shall compile information describing State grant
assistance, as well as State and other prepaid tuition programs
and savings programs and disseminate such information to
States, eligible institutions, students, and parents in
departmental publications and other means, including through
the Internet.
* * * * * * *
(e) Disclosures Required With Respect to Athletically
Related Student Aid.--(1) * * *
* * * * * * *
[(3) For purposes of this subsection, institutions may
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
services, on official church missions, or with a recognized
foreign aid service of the Federal Government.]
(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, the
institution may 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.
* * * * * * *
(f) Disclosure of Campus Security Policy and Campus Crime
Statistics.--(1) Each eligible institution participating in any
program under this title, other than a foreign institution of
higher education, shall on August 1, 1991, begin to collect the
following information with respect to campus crime statistics
and campus security policies of that institution, and beginning
September 1, 1992, and each year thereafter, prepare, publish,
and distribute, through appropriate publications or mailings,
to all current students and employees, and to any applicant for
enrollment or employment upon request, an annual security
report containing at least the following information with
respect to the campus security policies and campus crime
statistics of that institution:
(A) * * *
* * * * * * *
(5) On an annual basis, each institution participating in
any program under this title shall submit to the Secretary a
copy of the statistics required to be made available under
paragraph (1)(F). The Secretary shall--
(A) review such statistics and report to the
[Committee on Education and the Workforce of the House
of Representatives and the Committee on Labor and Human
Resources of the Senate] authorizing committees on
campus crime statistics by September 1, 2000;
* * * * * * *
(g) Data Required.--
(1) In general.-- * * *
* * * * * * *
(4) Submission; report; information availability.--
(A) * * *
(B) The Secretary shall prepare a report regarding
the information received under subparagraph (A) and
submit such report to the [Committee on Education and
the Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate]
authorizing committees by April 1, 2000. The report
shall--
(i) * * *
* * * * * * *
(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 institution's transfer of credit policies
which shall include a statement of the institution's
current transfer of credit policies that includes, at a
minimum--
(A) a statement that transfer of credit shall
not be denied solely on the basis of the agency
or association that accredited such other
institution of higher education, if that agency
or association is recognized by the Secretary
pursuant to section 496 to be a reliable
authority as to the quality of the education or
training offered;
(B) a list of institutions of higher
education with which the institution has
established an articulation agreement; and
(C) the percentage of students at the
institution who successfully transfer academic
credits, updated on an annual basis.
(2) Rule of construction.--Nothing in this subsection
shall be construed to--
(A) 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;
(B) limit the application of the General
Education Provisions Act; or
(C) 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.
* * * * * * *
SEC. 485B. NATIONAL STUDENT LOAN DATA SYSTEM.
(a) Development of the System. * * *
(1) * * *
* * * * * * *
(5) the exact amount of loans partially or totally
canceled or in deferment for service under the Peace
Corps Act (22 U.S.C. 2501 et seq.)), for service under
the Domestic Volunteer Service Act of 1973 (42 U.S.C.
4951 et seq.), and for comparable full-time service as
a volunteer for a tax-exempt organization of
demonstrated [effectiveness.] effectiveness;
[(5)] (6) the eligible institution in which the
student was enrolled or accepted for enrollment at the
time the loan was made, and any additional institutions
attended by the borrower;
[(6)] (7) the total amount of loans made to any
borrower and the remaining balance of the loans;
[(7)] (8) the lender, holder, and servicer of such
loans;
[(8)] (9) information concerning the date of any
default on the loan and the collection of the loan,
including any information concerning the repayment
status of any defaulted loan on which the Secretary has
made a payment pursuant to section 430(a) or the
guaranty agency has made a payment to the previous
holder of the loan;
[(9)] (10) information regarding any deferments or
forbearance granted on such loans; and
[(10)] (11) the date of cancellation of the note upon
completion of repayment by the borrower of the loan or
payment by the Secretary pursuant to section 437.
* * * * * * *
SEC. 485C. SIMPLIFICATION OF THE LENDING PROCESS FOR BORROWERS.
* * * * * * *
SEC. 485D. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.
(a) In General.--The Secretary shall implement, in
cooperation with States, institutions of higher education,
secondary schools, middle schools, early intervention and
outreach programs under this title, other agencies and
organizations involved in student financial assistance and
college access, public libraries, community centers, employers,
and businesses, a comprehensive system of early financial aid
information in order to provide students and families with
early information about financial aid and early estimates of
such students' eligibility for financial aid from multiple
sources. Such system shall include the activities described in
subsections (b) and (c).
(b) Communication of Availability of Aid and Aid
Eligibility.--
(1) Students who receive benefits.--The Secretary
shall--
(A) make special efforts to notify students
who receive or are eligible to receive benefits
under Federal means-tested benefit programs
(including the school lunch program established
under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.), the food
stamp program under the Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.), and other such
programs as determined by the Secretary) of
such students' potential eligibility for a
maximum Federal Pell Grant under subpart 1 of
part A; and
(B) disseminate such informational materials
as the Secretary determines necessary.
(2) Middle school students.--The Secretary, in
cooperation with States, institutions of higher
education, other organizations involved in college
access and student financial aid, middle schools, and
programs under this title that serve middle school
students, shall make special efforts to notify students
and their parents of the availability of financial aid
under this title and, in accordance with subsection
(c), shall provide nonbinding estimates of grant and
loan aid that an individual may be eligible for under
this title upon completion of an application formunder
section 483(a). The Secretary shall ensure that such information is as
accurate as possible and that such information is provided in an age-
appropriate format using dissemination mechanisms suitable for students
in middle school.
(3) Secondary school students.--The Secretary, in
cooperation with States, institutions of higher
education, other organizations involved in college
access and student financial aid, secondary schools,
and programs under this title that serve secondary
school students, shall make special efforts to notify
students in secondary school and their parents, as
early as possible but not later than such students'
junior year of secondary school, of the availability of
financial aid under this title and, in accordance with
subsection (c), shall provide nonbinding estimates of
the amounts of grant and loan aid that an individual
may be eligible for under this title upon completion of
an application form under section 483(a). The Secretary
shall ensure that such information is as accurate as
possible and that such information is provided in an
age-appropriate format using dissemination mechanisms
suitable for students in secondary school.
(4) Adult learners.--The Secretary, in cooperation
with States, institutions of higher education, other
organizations involved in college access and student
financial aid, employers, workforce investment boards
and public libraries, shall make special efforts to
provide individuals who would qualify as independent
students, as defined in section 480(d), with
information regarding the availability of financial aid
under this title and, in accordance with subsection
(c), with nonbinding estimates of the amounts of grant
and loan aid that an individual may be eligible for
under this title upon completion of an application form
under section 483(a). The Secretary shall ensure that
such information--
(A) is as accurate as possible;
(B) includes specific information regarding
the availability of financial aid for students
qualified as independent students, as defined
in section 480(d); and
(C) uses dissemination mechanisms suitable
for adult learners.
(5) Public awareness campaign.--Not later than 2
years after the date of enactment of the Higher
Education Amendments of 2005, the Secretary, in
coordination with States, institutions of higher
education, early intervention and outreach programs
under this title, other agencies and organizations
involved in student financial aid, local educational
agencies, public libraries, community centers,
businesses, employers, employment services, workforce
investment boards, and movie theaters, shall implement
a public awareness campaign in order to increase
national awareness regarding the availability of
financial aid under this title. The public awareness
campaign shall disseminate accurate information
regarding the availability of financial aid under this
title and shall be implemented, to the extent
practicable, using a variety of media, including print,
television, radio and the Internet. The Secretary shall
design and implement the public awareness campaign
based upon relevant independent research and the
information and dissemination strategies found most
effective in implementing paragraphs (1) through (4).
(c) Availability of Nonbinding Estimates of Federal Financial
Aid Eligibility.--
(1) In general.--The Secretary, in cooperation with
States, institutions of higher education, and other
agencies and organizations involved in student
financial aid, shall provide, via a printed form and
the Internet or other electronic means, the capability
for individuals to determine easily, by entering
relevant data, nonbinding estimates of amounts of grant
and loan aid an individual may be eligible for under
this title upon completion and processing of an
application and enrollment in an institution of higher
education.
(2) Data elements.--The Secretary, in cooperation
with States, institutions of higher education, and
other agencies and organizations involved in student
financial aid, shall determine the data elements that
are necessary to create a simplified form that
individuals can use to obtain easily nonbinding
estimates of the amounts of grant and loan aid an
individual may be eligible for under this title.
(3) Qualification to use simplified application.--The
capability provided under this paragraph shall include
the capability to determine whether the individual is
eligible to submit a simplified application form under
paragraph (2)(B) or (3)(B) of section 483(a).
* * * * * * *
SEC. 485E. COLLEGE ACCESS INITIATIVE.
(a) State-by-State Information.--The Secretary shall direct
each guaranty agency with which the Secretary has an agreement
under section 428(c) to provide to the Secretary the
information necessary for the development of Internet Web links
and access for students and families to a comprehensive listing
of the postsecondary education opportunities programs,
publications, Internet Web sites, and other services available
in the States for which such agency serves as the designated
guarantor.
(b) Guaranty Agency Activities.--
(1) Plan and activity required.--Each guaranty agency
with which the Secretary has an agreement under section
428(c) shall develop a plan, and undertake the
activity, necessary to gather the information required
under subsection (a) and to make such information
available to the public and to the Secretary in a form
and manner prescribed by the Secretary.
(2) Activities.--Each guaranty agency shall undertake
such activities as are necessary to promote access to
postsecondary education for students through providing
information on college planning, career preparation,
and paying for college. The guaranty agency shall
publicize such information and coordinate such
activities with other entities that provide or
distribute such information in the States for which
such guaranty agency serves as the designated
guarantor.
(3) Funding.--The activities required by this section
may be funded from the guaranty agency's Operating Fund
established pursuant to section 422B and to the extent
funds remain, from earnings on the restricted account
established pursuant to section 422(h)(4).
(4) Rule of construction.--Nothing in this subsection
shall require a guaranty agency to duplicate any
efforts currently underway that meet the requirements
of this subsection.
(c) Access to Information.--
(1) Secretary's responsibility.--The Secretary shall
ensure the availability of the information provided, by
the guaranty agencies in accordance with this section,
to students, parents, and other interested individuals,
through Web links or other methods prescribed by the
Secretary.
(2) Guaranty agency responsibility.--The guaranty
agencies shall ensure that the information required by
this section is available without charge in printed
format for students and parents requesting such
information.
(3) Publicity.--Not later than 270 days after the
date of enactment of the Higher Education Amendments
Act of 2005, the Secretary and guaranty agencies shall
publicize the availability of the information required
by this section, with special emphasis on ensuring that
populations that are traditionally underrepresented in
postsecondary education are made aware of the
availability of such information.
* * * * * * *
SEC. 486. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
(a) Purpose.-- * * *
* * * * * * *
(e) Notification.--The Secretary shall make available to
the public and to the [Committee on Labor and Human Resources
of the Senate and the Committee on Education and the Workforce
of the House of Representatives] authorizing committees a list
of institutions, systems or consortia selected to participate
in the demonstration program authorized by this section. Such
notice shall include a listing of the specific statutory and
regulatory requirements being waived for each institution,
system or consortium and a description of the distance
education courses to be offered.
(f) Evaluations and Reports.--
(1) Evaluation.-- * * *
* * * * * * *
(3) Reports.--
(A) In general.--Within 18 months of the
initiation of the demonstration program, the
Secretary shall report to the [Committee on
Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the
House of Representatives] authorizing
committees with respect to--
(i) * * *
* * * * * * *
(B) Additional reports.--The Secretary shall
provide additional reports to the [Committee on
Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the
House of Representatives] authorizing
committees on an annual basis regarding--
(i) * * *
* * * * * * *
SEC. 487. PROGRAM PARTICIPATION AGREEMENTS.
(a) Required for Programs of Assistance; Contents.-- * * *
(1) * * *
* * * * * * *
(23)(A) The institution, if located in a State to
which section 4(b) of the National Voter Registration
Act (42 U.S.C. 1973gg-2(b)) does not apply, will make a
good faith effort to distribute a mail voter
registration form, requested and a received from the
State, to each student enrolled in a degree or
certificate program and physically in attendance at the
institution, and to make such forms widely available to
students at the institution.
* * * * * * *
(D) An institution shall be considered in compliance
with the requirements of subparagraph (A) for any
student to whom the institution electronically
transmits a message containing a voter registration
form acceptable for use in the State in which the
institution is located, or an Internet address where
such a form can be downloaded, if such information is
in an electronic message devoted solely to voter
registration.
(24) The institution will, as calculated in
accordance with subsection (g)(1), have not less than
10 percent of its revenues from sources other than
funds provided under this title, or will be subject to
the sanctions described in subsection (g)(2).
* * * * * * *
(c) Audits; Financial Responsibility; Enforcement of
Standards.--(1) Notwithstanding any other provisions of this
title, the Secretary shall prescribe such regulations as may be
necessary to provide for--
(A)(i) except as provided in clauses (ii) and (iii),
a financial audit of an eligible institution with
regard to the financial condition of the institution in
its entirety, and a compliance audit of such
institution with regard to any funds obtained by it
under this title or obtained from a student or a parent
who has a loan insured or guaranteed by the Secretary
under this title, on at least an annual basis and
covering the period since the most recent audit,
conducted by a qualified, independent organization or
person in accordance with standards established by the
Comptroller General for the audit of governmental
organizations, programs, and functions, and as
prescribed in regulations of the Secretary, the results
of which shall be submitted to the Secretary and shall
be available to cognizant guaranty agencies, eligible
lenders, State agencies, and the appropriate State
agency notifying the Secretary under subpart 1 of part
H, except that the Secretary may modify the
requirements of this clause with regard to an
institution outside the United States;
(d) Institutional Requirements for Teach-Outs.--
(1) In general.--In the event the Secretary initiates
the limitation, suspension, or termination of the
participation of an institution of higher education in
any program under this title under the authority of
subsection (c)(1)(F) or initiates an emergency action
for termination under the authority of subsection
(c)(1)(G) and its prescribed regulations, the Secretary
shall require that institution to prepare a teach-out
plan for submission to the institution's accrediting
agency or association in compliance with section
496(c)(4), the Secretary's regulations on teach-out
plans, and the standards of the institution's
accrediting agency or association.
(2) Teach-out plan defined.--In this subsection, the
term `teach-out plan' means a written plan that
provides for the equitable treatment of students if an
institution of higher education ceases to operate
before all students have completed their program of
study, and may include, if required by the
institution's accrediting agency or association, an
agreement between institutions for such a teach-out
plan.
[(d)] (e) Definition of Eligible Institution.-- * * *
[(e)] (f) Construction.-- * * *
(g) Implementation of Nontitle IV Revenue Requirement.--
(1) Calculation.--In carrying out subsection (a)(24),
an institution shall use the cash basis of accounting
and count the following funds as from sources of funds
other than funds provided under this title:
(A) Funds used by students from sources other
than funds received under this title to pay
tuition, fees, and other institutional charges
to the institution, provided the institution
can reasonably demonstrate that such funds were
used for such purposes.
(B) Funds used by the institution to satisfy
matching-fund requirements for programs under
this title.
(C) Funds used by a student from savings
plans for educational expenses established by
or on behalf of the student and which qualify
for special tax treatment under the Internal
Revenue Code of 1986.
(D) Funds paid by a student, or on behalf of
a student by a party other than the
institution, to the institution for an
education or training program that is not
eligible for funds under this title, provided
that the program is approved or licensed by the
appropriate State agency or an accrediting
agency recognized by the Secretary.
(E) Funds generated by the institution from
institutional activities that are necessary for
the education and training of the institution's
students, if such activities are--
(i) conducted on campus or at a
facility under the control of the
institution;
(ii) performed under the supervision
of a member of the institution's
faculty; and
(iii) required to be performed by all
students in a specific educational
program at the institution.
(F) Institutional aid, as follows:
(i) In the case of loans made by the
institution, only the amount of loan
repayments received by the institution
during the fiscal year for which the
determination is made.
(ii) In the case of scholarships
provided by the institution, only those
scholarship funds provided by the
institution that are--
(I) in the form of monetary
aid based upon the academic
achievements or financial need
of students; and
(II) disbursed during the
fiscal year for which the
determination is made from an
established restricted account
and only to the extent that the
funds in that account represent
designated funds from an
outside source or income earned
on those funds.
(iii) In the case of tuition
discounts, only those tuition discounts
based upon the academic achievement or
financial need of students.
(2) Sanctions.--
(A) Failure to meet requirement for 1 year.--
In addition to such other means of enforcing
the requirements of this title as may be
available to the Secretary, if an institution
fails to meet the requirements of subsection
(a)(24) in any year, the Secretary may impose 1
or both of the following sanctions on the
institution:
(i) Place the institution on
provisional certification in accordance
with section 498(h) until the
institution demonstrates, to the
satisfaction of the Secretary, that it
is in compliance with subsection
(a)(24).
(ii) Require such other increased
monitoring and reporting requirements
as the Secretary determines necessary
until the institution demonstrates, to
the satisfaction of the Secretary, that
it is in compliance with subsection
(a)(24).
(B) Failure to meet requirement for 2
years.--An institution that fails to meet the
requirements of subsection (a)(24) for 2
consecutive years shall be ineligible to
participate in the programs authorized under
this title.
(3) Public availability of information.--The
Secretary shall make publicly available, through the
means described in subsection (b) of section 131, any
institution that fails to meet the requirements of
subsection (a)(24) in any year as an institution that
is failing to meet the minimum non-Federal source of
revenue requirements of such subsection (a)(24).
SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.
(a) Quality Assurance Program.--
(1) In general.-- * * *
* * * * * * *
(5) Review and evaluation.--The Secretary shall
review and evaluate the Quality Assurance Program
conducted by each participating institution and, on the
basis of that evaluation, make recommendations
regarding amendments to this Act that will streamline
the administration and enhance the integrity of Federal
student assistance programs. Such recommendations shall
be submitted to the [Committee on Labor and Human
Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives]
authorizing committees.
(b) Regulatory Improvement and Streamlining Experiments.--
(1) In general.--The Secretary may continue any
experimental sites in existence on the date of
enactment of the Higher Education Amendments of [1998]
2005. Any activities approved by the Secretary prior to
such date that are inconsistent with this section shall
be discontinued not later than June 30, [1999] 2006.
[(2) Report.--The Secretary shall review and evaluate
the experience of institutions participating as
experimental sites during the period of 1993 through
1998 under this section (as such section was in effect
on the day before the date of enactment of the Higher
Education Amendments of 1998), and shall submit a
report based on this review and evaluation to the
Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the
House of Representatives not later than 6 months after
the enactment of the Higher Education Amendments of
1998. Such report shall include--]
(A) * * *
(2) Report.--The Secretary shall review and evaluate
the experience of institutions participating as
experimental sites and shall, on a biennial basis,
submit a report based on the review and evaluation to
the authorizing committees. Such report shall include--
* * * * * * *
(3) Selection.--
(A) In general.--[Upon the submission of the
report required by paragraph (2), the] The
Secretary is authorized to periodically select
a limited number of additional institutions for
voluntary participation as experimental sites
to provide recommendations to the Secretary on
the impact and effectiveness of proposed
regulations or new management initiatives.
[(B) Consultation.--Prior to approving any
additional experimental sites, the Secretary
shall consult with the Committee on Labor and
Human Resources of the Senate and the Committee
on Education and the Workforce of the House of
Representatives and shall provide to such
Committees--
[(i) a list of institutions proposed
for participation in the experiment and
the specific statutory or regulatory
waivers proposed to be granted to each
institution;
[(ii) a statement of the objectives
to be achieved through the experiment;
and
[(iii) an identification of the
period of time over which the
experiment is to be conducted.]
[(C)] (B) Waivers.--The Secretary is
authorized to waive, for any institution
participating as an experimental site under
subparagraph (A), any requirements in this
title, including requirements related to the
award process and disbursement of student
financial aid (such as innovative delivery
systems for modular or compressed courses, or
other innovative systems), verification of
student financial aid application data,
entrance and exit interviews, or other
management procedures or processes as
determined in the negotiated rulemaking process
under section 492, or regulations prescribed
under this title, that will bias the results of
the experiment, except that the Secretary shall
not waive any provisions with respect to award
rules (other than an award rule related to an
experiment in modular or compressed schedules),
grant and loan maximum award amounts, and need
analysis requirements unless the waiver of such
provisions is authorized by another provision
under this title.
* * * * * * *
SEC. 488. TRANSFER OF ALLOTMENTS.
In order to offer an arrangement of types of aid, including
institutional and State aid which best fits the needs of each
individual student, an institution may (1) transfer a total of
25 percent of the institutions allotment under section 462 to
the institution's allotment under section 413D or 442 (or
both); [and] (2) transfer 25 percent of the institution's
allotment under section 442 to the institution's allotment
under section [413D.] 413D; and Funds transferred to an
institution's allotment under another section may be used as a
part of and for the same purposes as funds allotted under that
section. The Secretary shall have no control over such
transfer, except as specifically authorized, except for the
collection and dissemination of information. (3) transfer 25
percent of the institution's allotment under section 413D to
the institution's allotment under section 442.
* * * * * * *
SEC. 488A. WAGE GARNISHMENT REQUIREMENT.
(a) Garnishment Requirements.-- * * *
(1) the amount deducted for any pay period may not
exceed [10 percent] 15 percent of disposable pay,
except that a greater percentage may be deducted with
the written consent of the individual involved;
* * * * * * *
SEC. 489. ADMINISTRATIVE EXPENSES.
(a) Amount of Payments.-- * * *
(b) Purpose of Payments.--(1) The sums paid to institutions
under this part are for the sole purpose of [offsetting the
administrative costs of] administering the programs described
in subsection (a).
* * * * * * *
SEC. 491. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
(a) Establishment and Purpose.--(1) * * *
(2) The purpose of the Advisory Committee is--
(A) to provide extensive knowledge and
understanding of the Federal, State, and
institutional programs of postsecondary student
assistance;
(B) to provide technical expertise with
regard to systems of needs analysis and
application forms; [and]
(C) to make recommendations that will result
in the maintenance of access to postsecondary
education for low- and middle-income
students[.];
(D) to provide knowledge and understanding of
early intervention programs, and to make
recommendations that will result in early
awareness by low- and moderate-income students
and families--
(i) of their eligibility for
assistance under this title; and
(ii) to the extent practicable, of
their eligibility for other forms of
State and institutional need-based
student assistance; and
(E) to make recommendations that will expand
and improve partnerships among the Federal
Government, States, institutions of higher
education, and private entities to increase the
awareness and the total amount of need-based
student assistance available to low- and
moderate-income students.
* * * * * * *
(c) Membership.-- * * *
* * * * * * *
(3) The appointment of a member under subparagraph
(A) or (B) of paragraph (1) shall be effective upon
confirmation of the member by the Senate and
publication of such appointment in the Congressional
Record.
(d) Functions of the Committee.--The Advisory Committee
shall--
(1) * * *
* * * * * * *
(6) recommend to the Congress and to the Secretary
such studies, surveys, and analyses of student
financial assistance programs, policies, and practices,
including the special needs of low-income,
disadvantaged, and nontraditional students, and the
means by which the needs may be met[, but nothing in
this section shall authorize the committee to perform
such studies, surveys, or analyses];
* * * * * * *
(j) Special Analyses and Activities.--The Advisory
Committee shall.--
(1) monitor and evaluate the modernization and
simplification of student financial aid systems and
delivery processes, [including the implementation of a
performance-based organization within the Department,]
and report to Congress regarding such modernization, or
not less than an annual basis, including
recommendations for improvement;
* * * * * * *
[(4) assess the implications of distance education on
student eligibility and other requirements for
financial assistance under this title, and make
recommendations that will enhance access to
postsecondary education through distance education
while maintaining access, through on-campus instruction
at eligible institutions, and program integrity; and
[(5) make recommendations to the Secretary regarding
redundant or outdated provisions of and regulations
under this Act, consistent with the Secretary's
requirements under section 498B.]
(4) conduct a review and analysis of regulations in
accordance with subsection (l); and
(5) conduct a study in accordance with subsection
(m).
(k) Term of the Committee.--Notwithstanding the sunset
charter provisions of the Federal Advisory Committee Act (5
U.S.C. App. I) or any other statute or regulation, the Advisory
Committee shall be authorized until October 1, [2004] 2010.
(l) Review and Analysis of Regulations.--
(1) Recommendations.--The Advisory Committee shall
make recommendations to the Secretary and Congress for
consideration of future legislative action regarding
redundant or outdated regulations under this title,
consistent with the Secretary's requirements under
section 498B.
(2) Review and analysis of regulations.--The Advisory
Committee shall conduct a review and analysis of the
regulations issued under this title that are in effect
at the time of the review and that apply to the
operations or activities of participants in the
programs assisted under this title. The review and
analysis may include a determination of whether the
regulation is duplicative, is no longer necessary, is
inconsistent with other Federal requirements, or is
overly burdensome. In conducting the review, the
Advisory Committee shall pay specific attention to
evaluating ways in which regulations under this title
affecting institutions of higher education (other than
institutions described in section 102(a)(1)(C)), that
have received in each of the 2 most recent award years
prior to the date of enactment of the Higher Education
Amendments of 2005 less than $200,000 in funds through
this title, may be improved, streamlined, or
eliminated.
(3) Consultation.--
(A) In general.--In carrying out the review
and analysis under paragraph (2), the Advisory
Committee shall consult with the Secretary,
relevant representatives of institutions of
higher education, and individuals who have
expertise and experience with the regulations
issued under this title, in accordance with
subparagraph (B).
(B) Review panels.--The Advisory Committee
shall convene not less than 2 review panels of
representatives of the groups involved in
student financial assistance programs under
this title who have experience and expertise in
the regulations issued under this title to
review the regulations under this title, and to
provide recommendations to the Advisory
Committee with respect to the review and
analysis under paragraph (2). The panels shall
be made up of experts in areas such as the
operations of the financial assistance
programs, the institutional eligibility
requirements for the financial assistance
programs, regulations not directly related to
the operations or the institutional eligibility
requirements of the financial assistance
programs, and regulations for dissemination of
information to students about the financial
assistance programs.
(4) Reports to congress.--The Advisory Committee
shall submit, not later than 2 years after the
completion of the negotiated rulemaking process
required under section 492 resulting from the
amendments to this Act made by the Higher Education
Amendments of 2005, a report to the authorizing
committees and the Secretary detailing the expert
panels' findings and recommendations with respect to
the review and analysis under paragraph (2).
(5) Additional support.--The Secretary and the
Inspector General of the Department shall provide such
assistance and resources to the Advisory Committee as
the Secretary and Inspector General determine are
necessary to conduct the review required by this
subsection.
(m) Study of Innovative Pathways to Baccalaureate Degree
Attainment.--
(1) Study required.--The Advisory Committee shall
conduct a study of the feasibility of increasing
baccalaureate degree attainment rates by reducing the
costs and financial barriers to attaining a
baccalaureate degree through innovative programs.
(2) Scope of study.--The Advisory Committee shall
examine new and existing programs that promote
baccalaureate degree attainment through innovative
ways, such as dual or concurrent enrollment programs,
changes made to the Federal Pell Grant program,
simplification of the needs analysis process,
compressed or modular scheduling, articulation
agreements, and programs that allow 2-year institutions
of higher education to offer baccalaureate degrees.
(3) Required aspects of the study.--In performing the
study described in this subsection, the Advisory
Committee shall examine the following aspects of such
innovative programs:
(A) The impact of such programs on
baccalaureate attainment rates.
(B) The degree to which a student's total
cost of attaining a baccalaureate degree can be
reduced by such programs.
(C) The ways in which low- and moderate-
income students can be specifically targeted by
such programs.
(D) The ways in which nontraditional students
can be specifically targeted by such programs.
(E) The cost-effectiveness for the Federal
Government, States, and institutions of higher
education to implement such programs.
(4) Consultation.--
(A) In general.--In performing the study
described in this subsection the Advisory
Committee shall consult with a broad range of
interested parties in higher education,
including parents, students, appropriate
representatives of secondary schools and
institutions of higher education, appropriate
State administrators, administrators of dual
enrollment programs, and appropriate officials
from the Department.
(B) Congressional consultation.--The Advisory
Committee shall consult on a regular basis with
the authorizing committees in carrying out the
study required by this section.
(5) Reports to congress.--
(A) Interim report.--The Advisory Committee
shall prepare and submit to the authorizing
committees and the Secretary 1 interim report,
not later than 1 year after the date of
enactment of the Higher Education Amendments of
2005, describing the progress that has been
made in conducting the study required by this
subsection and any preliminary findings on the
topics identified under paragraph (2).
(B) Final report.--The Advisory Committee
shall, not later than 3 years after the date of
enactment of the Higher Education Amendments of
2005, prepare and submit to the authorizing
committees and the Secretary a final report on
the study, including recommendations for
legislative, regulatory, and administrative
changes based on findings related to the topics
identified under paragraph (2).
SEC. 492. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
(a) Meetings.--
(1) In general.--The Secretary shall obtain public
involvement in the development of proposed regulations
for this title. The Secretary shall obtain the advice
of and recommendations from individuals and
representatives of the groups involved in student
financial assistance programs under this title, such as
students, legal assistance organizations that represent
students, institutions of higher education, State
student grant agencies, guaranty agencies, lenders,
secondary markets, loan services, guaranty agency
servicers, and collection agencies.
* * * * * * *
Subpart 2--Accrediting Agency Recognition
SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION
(a) Criteria Required.-- * * *
(1) * * *
* * * * * * *
[(4) such agency or association consistently applies
and enforces standards that ensure that the courses or
programs of instruction, training, or study offered by
the institution of higher education, including distance
education courses or programs, are of sufficient
quality to achieve, for the duration of the
accreditation period, the stated objective for which
the courses or the programs are offered;]
(4)(A) such agency or association consistently
applies and enforces standards that respect the stated
mission of the institution of higher education,
including religious missions, and that ensure that the
courses or programs of instruction, training, or study
offered by the institution of higher education,
including distance education courses or programs, are
of sufficient quality to achieve, for the duration of
the accreditation period, the stated objective for
which the courses or the programs are offered; and
(B) if such agency or association has or seeks to
include within its scope of recognition the evaluation
of the quality of institutions or programs offering
distance education, such agency or association shall,
in addition to meeting the other requirements of this
subpart, demonstrate to the Secretary that--
(i) the agency or association's standards
effectively address the quality of an
institution's distance education in the areas
identified in section 496(a)(5), except that
the agency or association shall not be required
to have separate standards, procedures or
policies for the evaluation of distance
education institutions or programs in order to
meet the requirements of this subparagraph; and
(ii) the agency or association requires an
institution that offers distance education to
have processes through which the institution
establishes that the student who registers in a
distance education course or program is the
same student who participates, completes and
receives the academic credit;
(5) the standards for accreditation of the agency or
association assess the institution's--
[(A) success with respect to student
achievement in relation to the institution's
mission, including, as appropriate,
consideration of course completion, State
licensing examinations, and job placement
rates;]
(A) success with respect to student
achievement in relation to the institution's
mission, including--
(i) consideration of student academic
achievement as determined by the
institution;
(ii) student retention;
(iii) course and program completion;
(iv) as appropriate, State licensing
examinations;
(v) as appropriate, job placement
rates or enrollment in graduate or
professional programs; and
(vi) as appropriate, other student
performance information selected by the
institution, particularly that
information used by the institution to
evaluate or strengthen its programs;
* * * * * * *
[(6) such agency or association shall apply
procedures throughout the accrediting process,
including evaluation and withdrawal proceedings, that
comply with due process, including--
[(A) adequate specification of requirements
and deficiencies at the institution of higher
education or program being examined;
[(B) notice of an opportunity for a hearing
by any such institution;
[(C) the right to appeal any adverse action
against any such institution; and
[(D) the right to representation by counsel
for any such institution;]
(6) such an agency or association shall establish and
apply review procedures throughout the accrediting
process, including evaluation and withdrawal
proceedings which comply with due process procedures
that provide for--
(A) adequate specification of requirements
and deficiencies at the institution of higher
education or program examined;
(B) an opportunity for a written response by
any such institution to be included, prior to
final action, in the evaluation and withdrawal
proceedings;
(C) upon the written request of an
institution, an opportunity for the institution
to appeal any adverse action, including denial,
withdrawal, suspension, or termination of
accreditation, or placement on probation of an
institution, at a hearing prior to such action
becoming final, before an appeals panel that--
(i) shall not include current members
of the agency or association's
underlying decision-making body that
made the adverse decision; and
(ii) is subject to a conflict of
interest policy; and
(D) the right to representation by counsel
for such an institution during an appeal of the
adverse action;
* * * * * * *
[(8) such agency or association shall make available
to the public, upon request, and the Secretary, and the
State licensing or authorizing agency a summary of any
review resulting in a final accrediting decision
involving denial, termination, or suspension of
accreditation, together with the comments of the
affected institution.]
(8) such agency or association shall make available
to the public and the State licensing or authorizing
agency, and submit to the Secretary, a summary of
agency or association actions, including--
(A) the award of accreditation or
reaccreditation of an institution;
(B) final denial, withdrawal, suspension, or
termination of accreditation, or placement on
probation of an institution, and any findings
made in connection with the action taken,
together with the official comments of the
affected institution; and
(C) any other adverse action taken with
respect to an institution.
* * * * * * *
(c) Operating Procedures Required.-- * * *
(1) performs, at regularly established intervals, on-
site inspections and reviews of institutions of higher
education (which may include unannounced site visits)
with particular focus on educational quality and
program effectiveness, and ensures that accreditation
team members are well-trained and knowledgeable with
respect to their responsibilities, including those
regarding distance education;
(2) ensures that the agency or association's on-site
evaluation for accreditation or reaccreditation
includes review of the Federally required information
the institution or program provides its current and
prospective students;
(3) monitors the growth of programs at institutions
that are experiencing significant enrollment growth;
(4) requires an institution to submit a teach-out
plan for approval to the accrediting agency upon the
occurrence of any of the following events:
(A) The Department notifies the accrediting
agency of an action against the institution
pursuant to section 487(d).
(B) The accrediting agency acts to withdraw,
terminate, or suspend the accreditation of an
institution.
(C) The institution notifies the accrediting
agency that the institution intends to cease
operations.
[(2)] (5) requires that any institution of higher
education subject to its jurisdiction which plans to
establish a branch campus submit a business plan,
including projected revenues and expenditures, prior to
opening the branch campus;
[(3)] (6) agrees to conduct, as soon as practicable,
but within a period of not more than 6 months of the
establishment of a new branch campus or a change of
ownership of an institution of higher education, an on-
site visit of that branch campus or of the institution
after a change of ownership;
[(4)] (7) requires that teach-out agreements among
institutions are subject to approval by the accrediting
agency or association consistent with standards
promulgated by such agency or association;
[(5)] (8) remains and makes publicly available
written materials regarding standards and procedures
for accreditation, appeal procedures, and the
accreditation status of each institution subject to its
jurisdiction; [and]
[(6)] (9) discloses publicly whenever an institution
of higher education subject to its jurisdiction is
being considered for accreditation or
reaccreditation[.]; and
(10) confirms, as a part of the agency or
association's review for accreditation or
reaccreditation, that the institution has transfer of
credit policies--
(A) that are publicly disclosed;
(B) that do not deny transfer of credit based
solely on the accreditation of the sending
institution, if the agency or association
accrediting the sending institution is
recognized by the Secretary pursuant to this
section; and
(C) in which acceptance or denial of transfer
of credit is decided according to criteria
established in guidelines developed by the
institution's admissions committee.
* * * * * * *
Subpart 3--Eligibility and Certification Procedures
SEC. 498. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) General Requirement.-- * * *
* * * * * * *
(d) Administrative Capacity Standard.-- * * *
(1) * * *
(A) * * *
(B) maintenance of records; and
* * * * * * *
(j) Treatment of Branches.-- * * *
* * * * * * *
(k) Treatment of Teach-Outs at Additional Locations.--
(1) In general.--A location of a closed institution
of higher education shall be eligible as an additional
location of an eligible institution of higher
education, as defined pursuant to regulations of the
Secretary, for the purposes of a teach-out, if such
teach-out has been approved by the institution's
accrediting agency.
(2) Special rule.--An institution of higher education
that conducts a teach-out through the establishment of
an additional location described in paragraph (1) shall
be permitted to establish a permanent additional
location at a closed institution and shall not be
required--
(A) to meet the requirements of sections
102(b)(1)(E) and 102(c)(1)(C) for such
additional location; or
(B) to assume the liabilities of the closed
institution.
SEC. 498A. PROGRAM REVIEW AND DATA.
(a) General Authority.-- * * *
* * * * * * *
(b) Special Administrative Rules.-- * * *
(1) * * *
* * * * * * *
(4) base any civil penalty assessed against an
institution of higher education resulting from a
program review or audit on the gravity of the
violation, failure, or misrepresentation; [and]
(5) inform the appropriate State and accrediting
agency or association whenever the Secretary takes
action against an institution of higher education under
this section, section 498, or section 432[.] ;
(6) provide to an institution of higher education an
adequate opportunity to review and respond to any
program review report and relevant materials related to
the report before any final program review is reached;
(7) review and take into consideration an institution
of higher education's response in any final program
review; and
(8) maintain and preserve at all times the
confidentiality of any program review report until the
requirements of paragraphs (6) and (7) are met, and
until a final program review is issued, other than to
the extent required to comply with paragraph (5),
except that the Secretary shall promptly disclose any
and all program review reports to the institution of
higher education under review.
SEC. 498B. REVIEW OF REGULATIONS.
(a) Review Required.-- * * *
* * * * * * *
(d) Reports to Congress.--
(1) In general.--The Secretary shall submit, not
later than 1 year after the date of the enactment of
the Higher Education Amendments of 1998, a report to
the [Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Workforce
of the House of Representatives] authorizing committees
detailing the Secretary's findings and recommendations
based on the reviews conducted under subsections (a)
and (b), including a timetable for implementation of
any recommended changes in regulations and a
description of any recommendations for legislative
changes.
(2) Additional reports.--Not later than January 1,
2003, the Secretary shall submit a report to the
[Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the
House of Representatives] authorizing committees
detailing the Secretary's findings and recommendations
based on the review conducted under subsection (a),
including a timetable for implementation of any
recommended changes in regulations and a description of
any recommendations for legislative changes.
* * * * * * *
SEC. 502. DEFINITIONS; ELIGIBILITY.
(a) Definitions.-- For the purpose of this title:
(1) Educational and general expenditures.-- * * *
* * * * * * *
(5) Hispanic-serving institution.--The term
``Hispanic-serving institution'' means an institution
of higher education that--
(A) is an eligible institution; and
(B) at the time of application, has an
enrollment of undergraduate full-time
equivalent students that is at least 25 percent
Hispanic students[; and].
[(C) provides assurances that not less than
50 percent of the institution's Hispanic
students are low-income individuals which
assurances--
[(i) may employ statistical
extrapolation using appropriate data
from the Bureau of the Census or other
appropriate Federal or State sources;
and
(ii) the Secretary shall consider as
meeting the requirements of this
subparagraph, unless the Secretary
determines, based on a preponderance of
the evidence, that the assurances do
not meet the requirements.]
* * * * * * *
[(7) Low-income individual.--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. 503. AUTHORIZED ACTIVITIES.
(a) Types of activities authorized.-- * * *
(b) Authorized Activities.--Grants awarded under this
section shall be used for one or more of the following
activities:
(1) * * *
* * * * * * *
(5) Tutoring, counseling, and student service
programs designed to improve academic success,
including innovative, customized remedial education and
English language instruction courses designed to help
retain students and move the students rapidly into core
courses and through program completion.
(6) Education or counseling services designed to
improve the financial literacy and economic literacy of
students or the students' parents.
(7) Articulation agreements and student support
programs designed to facilitate the transfer from 2-
year to 4-year institutions.
[(6)] (8) Funds management, administrative
management, and acquisition of equipment for use in
strengthening funds management.
[(7)] (9) Joint use of facilities, such as
laboratories and libraries.
[(8)] (10) Establishing or improving a development
office to strengthen or improve contributions from
alumni and the private sector.
[(9)] (11) Establishing or improving an endowment
fund.
[(10)] (12) Creating or improving facilities for
Internet or other distance learning academic
instruction capabilities, including purchase or rental
of telecommunications technology equipment or services.
[(11)] (13) Establishing or enhancing a program of
teacher education designed to qualify students to teach
in a public elementary or secondary schools.
[(12)] (14) 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.
[(13)] (15) Expanding the number of Hispanic and
other underrepresented graduate and professional
students that can be served by the institution by
expanding courses and institutional resources.
[(14)] (16) Other activities proposed in the
application submitted pursuant to section 504 that--
* * * * * * *
SEC. 504. DURATION OF GRANT.
[(a) Award Period.--]
(a) Award Period.--The Secretary may award a grant to a
Hispanic-serving institution under this title for 5 years.
* * * * * * *
PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC
AMERICANS
SEC. 511. PROGRAM AUTHORITY AND ELIGIBILITY.
(a) Program Authorized.--Subject to the availability of funds
appropriated to carry out this part, the Secretary shall award
grants, on a competitive basis, to eligible institutions to
enable the eligible institutions to carry out the authorized
activities described in section 512.
(b) Eligibility.--For the purposes of this part, an
``eligible institution'' means an institution of higher
education that--
(1) is a Hispanic-serving institution (as defined in
section 502); and
(2) offers a postbaccalaureate certificate or degree
granting program.
SEC. 512. AUTHORIZED ACTIVITIES.
Grants awarded under this part shall be used for 1 or more of
the following activities:
(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
(2) Construction, maintenance, renovation, and
improvement in classroom, library, laboratory, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services.
(3) Purchase of library books, periodicals, technical
and other scientific journals, microfilm, microfiche,
and other educational materials, including
telecommunications program materials.
(4) Support for needy postbaccalaureate students,
including outreach, academic support services,
mentoring, scholarships, fellowships, and other
financial assistance, to permit the enrollment of such
students in postbaccalaureate certificate and degree
granting programs.
(5) Support of faculty exchanges, faculty
development, faculty research, curriculum development,
and academic instruction.
(6) Creating or improving facilities for Internet or
other distance learning academic instruction
capabilities, including purchase or rental of
telecommunications technology equipment or services.
(7) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and
degree offerings.
(8) Other activities proposed in the application
submitted pursuant to section 513 that are approved by
the Secretary as part of the review and acceptance of
such application.
SEC. 513. APPLICATION AND DURATION.
(a) Application.--Any eligible institution may apply for a
grant under this part by submitting an application to the
Secretary at such time and in such manner as the Secretary may
require. Such application shall demonstrate how the grant funds
will be used to improve postbaccalaureate education
opportunities for Hispanic and low-income students and will
lead to such students' greater financial independence.
(b) Duration.--Grants under this part shall be awarded for a
period not to exceed 5 years.
(c) Limitation.--The Secretary may not award more than 1
grant under this part in any fiscal year to any Hispanic-
serving institution.
PART [B] C--GENERAL PROVISIONS
SEC. [511] 521. ELIGIBILITY; APPLICATIONS.
(a) Institutional Eligibility.-- * * *
* * * * * * *
(b) Applications.--
(1) Applications requested.-- * * *
* * * * * * *
(A) the application meets the requirements of
[subsection (b)] subsection (c); and
* * * * * * *
SEC. [512] 522. WAIVER AUTHORITY AND REPORTING REQUIREMENT.
* * * * * * *
SEC. [513] 523. APPLICATION REVIEW PROCESS.
* * * * * * *
SEC. [514] 524. COOPERATIVE ARRANGEMENTS.
(a) General Authority.--The Secretary may make grants to
encourage cooperative arrangements with funds available to
carry out this title, between Hispanic-serving institutions
eligible for assistance under this title, and between such
institutions and institutions not receiving assistance under
this title, for the activities described in [section 503]
sections 503 and 512 so that the resources of the cooperating
institutions might be combined and shared in order to achieve
the purposes of this title, to avoid costly duplicative
efforts, and to enhance the development of Hispanic-serving
institutions.
SEC. [515] 525. ASSISTANCE TO INSTITUTIONS UNDER OTHER PROGRAMS.
* * * * * * *
SEC. [516] 526. LIMITATIONS.
* * * * * * *
SEC. [517] 527. PENALTIES.
* * * * * * *
SEC. [518] 528. AUTHORIZATIONS OF APPROPRIATIONS.
[(a) Authorizations.--There are] (a) Authorizations.--(1)
Part a.--There are authorized to be appropriated to [carry out]
part A of this title [$62,500,000 for fiscal year 1999 and such
sums as may be necessary for reach of the 4 succeeding fiscal
years.] such sums as may be necessary for fiscal year 2006 and
each of the 5 succeeding fiscal years.
* * * * * * *
(2) Part b.--There are authorized to be appropriated to
carry out part B of this title such sums as may be necessary
for fiscal year 2006 and each of the 5 succeeding fiscal years.
* * * * * * *
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES
SEC. 601. FINDINGS [AND PURPOSES]; PURPOSES; CONSULTATION; SURVEY.
(a) Findings.--Congress finds as follows:
(1) * * *
* * * * * * *
(3) Dramatic [post-Cold War] changes in the world's
geopolitical and economic landscapes are creating needs
for American expertise and knowledge about a greater
diversity of less commonly taught foreign languages and
nations of the world.
* * * * * * *
(b) Purposes.--The purposes of this part are--
(1)(A) * * *
* * * * * * *
(D) to promote access to research and training
overseas, including through linkages with overseas
institutions;
* * * * * * *
(c) Consultation.--The Secretary shall, prior to requesting
applications for funding under this title during each grant
cycle, consult with and receive recommendations regarding
national need for expertise in foreign languages and world
regions from the head official, or a designee of such head
official, of the National Security Council, the Department of
Homeland Security, the Department of Defense, the Department of
State, the Federal Bureau of Investigation, the Department of
Labor, and the Department of Commerce, the Director of National
Intelligence, and other relevant agencies. These entities shall
provide information to the Secretary regarding how the entities
utilize expertise and resources provided by grantees under this
title. The Secretary shall take into account such
recommendations and information when requesting applications
for funding under this title, and shall make available to
applicants a list of areas identified as areas of national
need.
(d) Survey.--The Secretary shall assist grantees in
developing a survey to administer to students who have
participated in programs under this title to determine
postparticipation placement. All grantees, where applicable,
shall administer such survey not less often than annually and
report such data to the Secretary.
SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND
PROGRAMS.
(a) National Language and Area Centers and Programs
Authorized.--
(1) Centers and programs.--
(A) In general.--The Secretary is
authorized--
(i) * * *
* * * * * * *
(2) Authorized activities.--Any such grant may be
used to pay all or part of the cost of establishing or
operating a center or program, including the cost of--
(A) * * *
* * * * * * *
(G) summer institutes in the United States or
abroad designed to provide language and area
training in the center's field or topic; [and]
(H) support for faculty, staff, and student
travel in foreign areas, regions, or countries,
and for the development and support of
educational programs abroad for students[.] ;
and
(I) support for instructors of the less
commonly taught languages.
* * * * * * *
(4) Outreach grants and summer institutes.--The
Secretary may make additional grants to centers
described in paragraph (1) for any one or more of the
following purposes:
(A) * * *
* * * * * * *
(C) Programs of linkage or outreach between
or among--
(i) foreign language, area studies,
or other international fields; and
(ii) State educational agencies or
local educational agencies.
[(C)] (D) Programs of linkage or outreach
with departments or agencies of Federal and
State governments.
[(D)] (E) Programs of linkage or outreach
with the news media, business, professional, or
trade associations.
[(E)] (F) Summer institutes in foreign area,
foreign language, and other international
fields designed to carry out the programs of
linkage and outreach described in subparagraphs
(A), (B), (C), [and (D)] (D), and (E).
(b) [Graduate] Fellowships for Foreign Language and Area or
International Studies.--
(1) In general.-- * * *
* * * * * * *
[(2) Eligible students.--Students receiving stipends
described in paragraph (1) shall be individuals who are
engaged in an instructional program with stated
performance goals for functional foreign language use
or in a program developing such performance goals, in
combination with area studies, international studies,
or the international aspects of a professional studies
program, including predissertation level studies,
preparation for dissertation research, dissertation
research abroad, and dissertation writing.]
(2) Eligible students.--A student receiving a stipend
described in paragraph (1) shall be engaged--
(A) in an instructional program with stated
performance goals for functional foreign
language use or in a program developing such
performance goals, in combination with area
studies, international studies, or the
international aspects of a professional studies
program; and
(B)(i) in the case of an undergraduate
student, in the intermediate or advanced study
of a less commonly taught language; or
(ii) in the case of a graduate student, in
graduate study in connection with a program
described in subparagraph (A), including--
(I) predissertation level study;
(II) preparation for dissertation
research;
(III) dissertation research abroad;
or
(IV) dissertation writing.
* * * * * * *
[(d) Allowances.--Stipends awarded to graduate level
recipients may include allowances for dependents and for travel
for research and study in the United States and abroad.]
(d) Allowances.--
(1) Graduate level recipients.--A stipend awarded to
a graduate level recipient may include allowances for
dependents and for travel for research and study in the
United States and abroad.
(2) Undergraduate level recipients.--A stipend
awarded to an undergraduate level recipient may include
an allowance for educational programs in the United
States or educational programs abroad that--
(A) are closely linked to the overall goals
of the recipient's course of study; and
(B) have the purpose of promoting foreign
language fluency and knowledge of foreign
cultures.
(e) Application.--Each institution or combination of
institutions desiring a grant under this section shall submit
an application to the Secretary at such time, in such manner,
and accompanied by such information and assurances as the
Secretary may require. Each application shall include an
explanation of how the activities funded by the grant will
reflect diverse perspectives and a wide range of views and
generate debate on world regions and international affairs.
Each application shall also describe how the applicant will
address disputes regarding whether activities funded under the
application reflect diverse perspectives and a wide range of
views. Each application shall also include a description of how
the applicant will encourage government service in areas of
national need as identified by the Secretary.
* * * * * * *
SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE
PROGRAMS.
(a) Incentives for the Creation of New Programs and the
Strengthening of Existing Programs in Undergraduate
International Studies and Foreign Language Programs.--
(1) Authority.-- * * *
* * * * * * *
(2) Use of funds.--Grants made under this section may
be used for Federal share of the cost of projects and
activities which are an integral part of such a
program, such as--
(A) * * *
* * * * * * *
(I) providing subgrants to undergraduate
students for educational programs abroad that--
(i) are closely linked to the overall
goals of the program for which the
grant is awarded; and
(ii) have the purpose of promoting
foreign language fluency and knowledge
of foreign cultures;
[(I)] (J) the development of programs
designed to integrate professional and
technical education with foreign languages,
area studies, and other international fields;
[(J)] (K) the establishment of linkages
overseas with institutions of higher education
and organizations that contribute to the
educational programs assisted under this
subsection;
[(K)] (L) the conduct of summer institutes in
foreign area, foreign language, and other
international fields to provide faculty and
curriculum development, including the
integration of professional and technical
education with foreign area and other
international studies, and to provide foreign
area and other international knowledge or
skills to government personnel or private
sector professionals in international
activities;
[(L)] (M) the development of partnerships
between--
(i) institutions of higher education;
and
(ii) the private sector, government,
or elementary and secondary education
institutions,
in order to enhance international knowledge and
skills; and
[(M)] (N) the use of innovative technology to
increase access to international education
programs.
* * * * * * *
(7) Application.--Each application for assistance
under this subsection shall include--
(A) * * *
* * * * * * *
(C) an assurance that students at the
applicant institutions, as appropriate, will
have equal access to, and derive benefits from,
the program assisted under this subsection;
[and]
(D) an assurance that each institution,
combination or partnership will use the Federal
assistance provided under this subsection to
supplement and not supplant non-Federal funds
the institution expends for programs to improve
undergraduate instruction in international
studies and foreign language[s.];
(E) an explanation of how the activities
funded by the grant will reflect diverse
perspectives and a wide range of views and
generate debate on world regions and
international affairs, where applicable;
(F) a description of how the applicant will
address disputes regarding whether the
activities funded under the application reflect
diverse perspectives and a wide range of views;
and
(G) a description of how the applicant will
encourage government service in areas of
national need as identified by the Secretary.
* * * * * * *
(c) [Funding Support.--The Secretary] Funding Rules.--(1)
The secretary.--The Secretary may use not more than [10] 20
percent of the total amount appropriated for this part for
carrying out the purposes of this section.
(2) Grantees.--Of the total amount of grant funds awarded
to a grantee under this section, the grantee may use not more
than 10 percent of such funds for the activity described in
subsection (a)(2)(I).
SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.
(a) Authorized Activities.--The Secretary may, directly or
through grants or contracts, conduct research and studies that
contribute to achieving the purposes of this part. Such
research and studies may include--
(1) * * *
* * * * * * *
(8) studies and evaluations of effective practices in
the dissemination of international information,
materials, research, teaching strategies, and testing
techniques throughout the education community,
including elementary and secondary schools; [and]
(9) the application of performance tests and
standards across all areas of foreign language
instruction and classroom use[.];
(10) evaluation of the extent to which programs
assisted under this title reflect diverse perspectives
and a wide range of views and generate debate on world
regions and international affairs;
(11) the systematic collection, analysis, and
dissemination of data that contribute to achieving the
purposes of this part; and
(12) support for programs or activities to make data
collected, analyzed, or disseminated under this section
publicly available and easy to understand.
* * * * * * *
SEC. 606. TECHNOLOGICAL INNOVATION AND COOPERATION FOR FOREIGN
INFORMATION ACCESS.
(a) [Authority.--The Secretary] Authority._
(1) In general--The Secretary is authorized to make
grants to institutions of higher education, public or
nonprofit private libraries, or consortia of such
institutions or libraries, to develop innovative
techniques or programs using [new electronic
technologies] electronic technologies to collect,
organize, preserve, and widely disseminate information
from foreign sources on world regions and countries
other than the United States that address our Nation's
teaching and research needs in international education
and foreign languages.
(1) In general.--The Secretary
(2) Partnerships with not-for-profit educational
organizations.--The Secretary may award grants under
this section to carry out the activities authorized
under this section to the following:
(A) An institution of higher education.
(B) A public or nonprofit private library.
(C) A consortium of an institution of higher
education and 1 or more of the following:
(i) Another institution of higher
education.
(ii) A library.
(iii) A not-for-profit educational
organization.
(b) Authorized Activities.--Grants under this section may
be used--
(1) [to facilitate access to] to acquire, facilitate
access to, or preserve foreign information resources in
print or electronic forms;
(2) to develop new means of or standards for
immediate, full-text document delivery for information
and scholarship from abroad;
* * * * * * *
(6) to assist teachers of less commonly taught
languages in acquiring, via electronic and other means,
materials suitable for classroom use; [and]
(7) to promote collaborative technology based
projects in foreign languages, area studies, and
international studies among grant recipients under this
title[.] ;
(8) to establish linkages to facilitate carrying out
the activities described in this subsection between--
(A) the institutions of higher education,
libraries, and consortia receiving grants under
this section; and
(B) institutions of higher education, not-
for-profit educational organizations, and
libraries overseas; and
(9) to carry out other activities that the Secretary
determines are consistent with the purpose of the
grants or contracts awarded under this section.
(c) Application.--Each [institution or consortium]
institution of higher education, library, or consortium
desiring a grant under this section shall submit an application
to the Secretary at such time, in such manner, and accompanied
by such information and assurances as the Secretary may
reasonably require.
* * * * * * *
SEC. 607. SELECTION OF CERTAIN GRANT RECIPIENTS.
(a) Competitive Grants.--The Secretary shall award grants
under section 602 competitively on the basis of criteria that
separately, but not less rigorously, [evaluate the applications
for comprehensive and undergraduate language and area centers
and programs.] evaluate--
(1) the applications for comprehensive foreign
language and area or international studies centers and
programs; and
(2) the applications for undergraduate foreign
language and area or international studies centers and
programs.
(b) Selection Criteria.--The Secretary shall set criteria
for grants awarded under section 602 by which a determination
of excellence shall be made to meet the differing objective of
graduate and undergraduate institutions. The Secretary shall
also consider an applicant's record of sending students into
public service and an applicant's stated efforts to increase
the number of students that go into public service.
* * * * * * *
SEC. 609. AMERICAN OVERSEAS RESEARCH CENTERS.
(a) Centers Authorized.-- * * *
* * * * * * *
(e) Application.--Each center desiring a grant under this
section shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information and
assurances as the Secretary may require. Each application shall
include how the activities funded by the grant will reflect
diverse perspectives and a wide range of views and generate
debate on world regions and international affairs, where
applicable. Each application shall also describe how the
applicant will address disputes regarding whether the
activities funded under the application reflect diverse
perspectives and a wide range of views.
SEC. 610. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part [$80,000,000 for fiscal year 1999, and such sums as may be
necessary for each of the 4 succeeding fiscal years.] such sums
as may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
* * * * * * *
SEC. 612. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.
(a) Program Authorized.--
(1) In general.-- * * *
* * * * * * *
(f) Grant Conditions.--Grants under this section shall be
made on such conditions as the Secretary determines to be
necessary to carry out the objectives of this section. Such
conditions shall include--
(1) * * *
* * * * * * *
(3) assurance that the education and training
programs of the center will be open to students
concentrating in each of these respective areas, as
appropriate; [and]
(4) assurance that the institution of higher
education, or combination of such institutions, will
use the assistance provided under this section to
supplement and not to supplant activities conducted by
institutions of higher education described in
subsection (c)(1)[.] ; and
(5) assurances that activities funded by the grant
will reflect diverse perspectives and a wide range of
views and generate debate on world regions and
international affairs, where applicable.
SEC. 613. EDUCATION AND TRAINING PROGRAMS.
(a) Program Authorized.-- * * *
* * * * * * *
(c) Applications.--No grant may be made and no contract may
be entered into under this section unless an institution of
higher education submits an application to the Secretary at
such time and in such manner as the Secretary may reasonably
require. Each such application shall be accompanied by a copy
of the agreement entered into by the institution of higher
education with a business enterprise, trade organization or
association engaged in international economic activity, or a
combination or consortium of such enterprises, organizations,
or associations, for the purpose of establishing, developing,
improving or expanding activities eligible for assistance under
subsection (b) of this section. Each such application shall
contain assurances that the institution of higher education
will use the assistance provided under this section to
supplement and not to supplant activities conducted by
institutions of higher education described in subsection (b).
Each such application shall include an assurance that, where
applicable, the activities funded by the grant will reflect
diverse perspectives and a wide range of views on world regions
and international affairs.
* * * * * * *
SEC. 614. AUTHORIZATION OF APPROPRIATIONS.
(a) Centers for International Business Education.--There
are authorized to be appropriated [$11,000,000 for the fiscal
year 1999 and such sums as may be necessary for each of the 4
succeeding fiscal years] such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal years to
carry out the provisions of section 612.
(b) Education and Training Programs.--There are authorized
to be appropriated [$7,000,000 for fiscal year 1999, and such
sums as may be necessary for the 4 succeeding fiscal years,]
such sums as may be necessary for fiscal year 2006 and each of
the 5 succeeding fiscal years to carry out the provisions of
section 613.
PART C--INSTITUTE FOR INTERNATIONAL PUBLIC POLICY
SEC. 621. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT PROGRAM.
(a) Establishment.-- * * *
* * * * * * *
(c) Application.--Each eligible recipient desiring a grant
under this section shall submit an application at such time, in
such manner, and accompanied by such information as the
Secretary may reasonably require. Each application shall
include a description of how the activities funded by the grant
will reflect diverse perspectives and a wide range of views on
world regions and international affairs, where applicable.
* * * * * * *
(e) [Match Required.--The eligible] Matching Funds.--
(1) In general.--Subject to paragraph (2), the
eligible;
(2) Waiver.--The Secretary may waive the requirement
of paragraph (1) for an eligible recipient if the
Secretary determines such waiver is appropriate.
SEC. 622. INSTITUTIONAL DEVELOPMENT.
(a) In General.--The Institute shall award grants, from
amounts available to the Institute for each fiscal year, to
historically Black colleges and universities, Hispanic-serving
institutions, [Tribally Controlled Colleges or Universities,]
tribally controlled colleges or universities, and minority
institutions, to enable such colleges, universities, and
institutions to strengthen [international affairs programs.]
international affairs, international business, and foreign
language study programs, including the teaching of foreign
languages, at such colleges, universities, and institutions,
respectively, through increased collaboration with institutions
of higher education that receive funding under this title.
* * * * * * *
(c) Definitions.--In this section--
[(1) the term ``historically Black college and
university'' has the meaning given the term in section
322;]
[(2)] (1) the term ``Hispanic-serving instutition''
has the meaning given the term in section 502; and
[(3) the term ``Tribally Controlled College or
University'' has the meaning given the term in section
2 of the Tribally Controlled College or University
Assistance Act of 1978 (25 U.S.C. 1801); and]
[(4)] (2) the term ``minority institution'' has the
meaning given the term in section 365.
SEC. 623. STUDY ABROAD PROGRAM.
(a) Program Authority.--The Institute shall conduct, by
grant or contract, a junior year abroad program. The junior
year abroad program shall be open to eligible students at
institutions of higher education, including historically Black
colleges and universities [as defined in section 322 of this
Act], [tribally controlled Indian community colleges as defined
in the Tribally Controlled Community College Assistance Act of
1978] tribally controlled colleges or universities, and other
institutions of higher education with significant minority
student populations. Eligible student expenses shall be shared
by the Institute and the institution at which the student is in
attendance. Each student may spend not more than 9 months
abroad in a program of academic study, as well as social,
familial and political interactions designed to foster an
understanding of and familiarity with the language, culture,
economics and governance of the host country.
* * * * * * *
SEC. 624. [MASTERS] ADVANCED DEGREE IN INTERNATIONAL RELATIONS.
The Institute shall provide, in cooperation with the other
members participating in the eligible recipient consortium, a
program of study leading to a masters degree, and in
exceptional circumstances, a doctoral degree, in international
relations. The [masters degree] advanced degree program
designed by the consortia shall be reviewed and approved by the
Secretary. The Institute may grant fellowships in an amount not
to exceed the level of support comparable to that provided by
the National Science Foundation graduate fellowships, except
such amount shall be adjusted as necessary so as not to exceed
the fellow's demonstrated level of need according to
measurement of need approved by the Secretary. A fellowship
recipient shall agree to undertake full-time study and to enter
the international service (including work with private
international voluntary organizations) or foreign service of
the [United States] United States.
* * * * * * *
SEC. 625. INTERNSHIPS.
(a) In General.--The Institute shall enter into agreements
with historically Black colleges and universities [as defined
in section 322 of this Act], [tribally controlled Indian
community colleges as defined in the Tribally Controlled
Community College Assistance Act of 1978] tribally controlled
colleges or universities, other institutions of higher
education with significant numbers of minority students, and
institutions of higher education with programs in training
foreign service professionals, to provide academic year
internships during the junior and senior year and summer
internships following the sophomore and junior academic years,
by work placements with [an international] international,
voluntary or government organizations or agencies, including
the Agency for International Development, [the United States
Information Agency] the Department of State, the International
Monetary Fund, the National Security Council, the Organization
of American States, the Export-Import Bank, the Overseas
Private Investment Corporation, the Department of State, Office
of the United States Trade Representative, the World Bank, and
the United Nations.
* * * * * * *
(c) Interagency Committee on Minority Careers in
International Affairs.--
(1) Establishment.--There is established in the
executive branch of the Federal Government an
Interagency Committee on Minority Careers in
International Affairs composed of not less than 7
members, including--
(A) * * *
* * * * * * *
(E) the Director General of the Foreign
Service of the Department of State, or the
Director General's designee; and
(F) the General Counsel of the Agency for
International Development, or the General
Counsel's designee[; and].
[(G) the Associate Director for Educational
and Cultural Affairs of the United States
Information Agency, or the Associate Director's
designee.]
* * * * * * *
SEC. 626. FINANCIAL ASSISTANCE.
(a) Authority.--The Institute may provide financial
assistance, in the form of summer stipends described in
subsection (b) and Ralph Bunche scholarship assistance
described in subsection (c), to needy students to facilitate
the participation of the students in the Institute's programs
under this part.
(b) Summer Stipends.--
(1) Requirements.--A student receiving a summer
stipend under this section shall use such stipend to
defray the student's cost of participation in a summer
institute program funded under this part, including the
costs of travel, living, and educational expenses
necessary for the student's participation in such
program.
(2) Amount.--A summer stipend awarded to a student
under this section shall not exceed $3,000 per summer.
(c) Ralph Bunche Scholarship.--
(1) Requirements.--A student receiving a Ralph Bunche
scholarship under this section--
(A) shall be a full-time student at an
institution of higher education who is accepted
into a program funded under this part; and
(B) shall use such scholarship to pay costs
related to the cost of attendance, as defined
in section 472, at the institution of higher
education in which the student is enrolled.
(2) Amount and duration.--A Ralph Bunche scholarship
awarded to a student under this section shall not
exceed $5,000 per academic year.
* * * * * * *
SEC. [626] 627. REPORT.
The Institute shall [annually] biennially prepare a report
on the activities of the Institute and shall submit such report
to the Secretary of Education and the Secretary of State.
SEC. [627] 628. GIFTS AND DONATIONS.
The Institute is authorized to receive money and other
property donated, bequeathed, or devised to the Institute with
or without a condition of restriction, for the purpose of
providing financial support for the fellowships or underwriting
the cost of the Junior Year Abroad Program. All funds or
property given, devised, or bequeathed shall be retained in a
separate account, and an accounting of those funds and property
shall be included in the [annual report described in section
626] biennial report described in section 627.
* * * * * * *
SEC. [628] 629. AUTHORIZATION.
There is authorized to be appropriated [$10,000,000 for
fiscal year 1999 and such sums as may necessary for each of the
4 succeeding fiscal years to carry out this part.] such sums as
may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
* * * * * * *
PART D--GENERAL PROVISIONS
SEC. 631. DEFINITIONS.
(a) Definitions.--As used in this title--
(1) * * *
* * * * * * *
[(5)] (2) the term [``comprehensive language and a
area center''] comprehensive foreign language and area
or international studies center means an administrative
unit of a university that contributes significantly to
the national interest in advanced research and
scholarship, employs a critical mass of scholars in
diverse disciplines related to a geographic
concentration, offers intensive language training in
languages of its area specialization, maintains
important library collections related to the area, and
makes training available in language and area studies
to a graduate, postgraduate, and undergraduate
clientele; and
[(7)] (3) the term [``critical languages''] critical
foreign languages means each of the languages contained
in the list of critical languages designated by the
Secretary pursuant to section 212(d) of the Education
for Economic Security Act (50 Fed. Reg. 149, 31413),
except that, in the implementation of this definition,
the Secretary may set priorities according to the
purposes of this title:
[(9)] (4) the term ``educational programs abroad''
means programs of study, internships, or service
learning outside the United States which are part of a
foreign language or other international curriculum at
the undergraduate or graduate education levels[.];
[(3)] (5) the term ``export education'' means
educating, teaching and training to provide general
knowledge and specific skills pertinent to the selling
of goods and services to other countries, including
knowledge of market conditions, financial arrangements,
laws and procedures;
(6) the term ``historically Black college and
university'' has the meaning given the term ``part B
institution'' in section 322;
[(8)] (7) the term ``institution of higher
education'' means, in addition to institutions which
meet the definition of section 101 of this Act,
institutions which meet the requirements of section 101
of this Act except that (1) they are not located in the
United States, and (2) they apply for assistance under
this title in consortia with institutions which meet
the definition of section 101 of this act; [and]
[(2)] (8) the term ``international business'' means
profit-oriented business relationships conducted across
national boundaries and includes activities such as the
buying and selling of goods, investments in industries,
the licensing of processes, patents and trademarks, and
the supply of services;
[(4)] (9) the term ``internationalization of
curricula'' means the incorporation of international or
comparative perspectives in existing courses of study
or the addition of new components to the curricula to
provide an international context for American business
education;
(10) the term ``tribally controlled college or
university'' has the meaning given the term in section
2 of the Tribally Controlled College or University
Assistance Act of 1978 (25 U.S.C. 1801); and
[(6)] (11) the term [``undergraduate language and
area center''] undergraduate foreign language and area
or international studies center means an administrative
unit of an institution of higher education, including
but not limited to 4-year colleges, that contributes
significantly to the national interest through the
education and training of students who matriculate into
advanced language and area studies programs,
professional school programs, or incorporates
substantial international and foreign language content
into baccalaureate degree programs, engages in
research, curriculum development and community outreach
activities designed to broaden international and
foreign language knowledge, employs faculty with strong
language, area, and international studies credentials,
maintains library holdings, including basic reference
works, journals, and works in translation, and makes
training available predominantly to undergraduate
students;
* * * * * * *
SEC. 632. ASSESSMENT; ENFORCEMENT; RULE OF CONSTRUCTION.
(a) In General.--The Secretary is authorized to assess and
ensure compliance with all the conditions and terms of grants
provided under this title. If a complaint regarding activities
funded under this title is not resolved under the process
outlined in the relevant grantee's application, and such
complaint is filed with the Department, the Secretary shall be
notified, and is authorized, when circumstances warrant, to
immediately suspend future funding for the grant pending
resolution of such dispute. Such resolution shall not exceed 60
days. The Secretary shall take the outcomes of such complaints
into account when determining the renewal of grants.
(b) Rule of Construction.--Nothing in this title shall be
construed to authorize the Secretary to mandate, direct, or
control an institution of higher education's specific
instructional content, curriculum, or program of instruction.
SEC. 633. EVALUATION, OUTREACH, AND INFORMATION.
The Secretary may use not more than 1 percent of the funds
made available under this title to carry out program
evaluation, national outreach, and information dissemination
activities relating to the programs authorized under this
title.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
SEC. 700. PURPOSE.
It is the purpose of this title--
(1) to authorize national graduate fellowship
programs--
(A) in order to attract students of superior
ability and achievement, exceptional promise,
and demonstrated financial need, into high-
quality graduate programs and provide the
students with the financial support necessary
to complete advanced degrees; and
(B) that are designed to--
(i) sustain and enhance the capacity
for graduate education in areas of
national need, including those areas
critical to United States national and
homeland security needs such as
mathematics, science, and engineering;
and
* * * * * * *
SEC. 702. ALLOCATION OF FELLOWSHIPS.
(a) Fellowship Board.--
[(1) Appointment.--The Secretary shall appoint a
Jacob K. Javits Fellows Program Fellowship Board
(hereinafter in this subpart referred to as the
``Board'') consisting of 9 individuals representative
of both public and private institutions of higher
education who are especially qualified to serve on the
Board. In making appointments, the Secretary shall give
due consideration to the appointment of individuals who
are highly respected in the academic community. The
Secretary shall assure that individuals appointed to
the Board are broadly representative of a range of
disciplines in graduate education in arts, humanities,
and social sciences.]
(1) Appointment.--
(A) In general.--The Secretary shall appoint
a Jacob K. Javits Fellows Program Fellowship
Board (referred to in this subpart as the
``Board'') consisting of 9 individuals
representative of both public and private
institutions of higher education who are
especially qualified to serve on the Board.
(B) Qualifications.--In making appointments
under subparagraph (A), the Secretary shall--
(i) give due consideration to the
appointment of individuals who are
highly respected in the academic
community;
(ii) assure that individuals
appointed to the Board are broadly
representative of a range of
disciplines in graduate education in
arts, humanities, and social sciences;
(iii) appoint members to represent
the various geographic regions of the
United States; and
(iv) include representatives from
minority institutions, as defined in
section 365.
SEC. 703. STIPENDS.
(a) Award by Secretary.--The Secretary shall pay to
individuals awarded fellowships under this subpart such
stipends as the Secretary may establish, reflecting the purpose
of this program to encourage highly talented students to
undertake graduate study as described in this subpart. In the
case of an individual who receives such individual's first
stipend under this subpart in academic year 1999-2000 or any
succeeding academic year, such stipend shall be set at a level
of support equal to that provided by the National Science
Foundation [graduate fellowships] Graduate Research Fellowship
Program, except such amount shall be adjusted as necessary so
as not to exceed the fellow's demonstrated level of need
determined in accordance with part F or title IV.
* * * * * * *
SEC. 705. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated [$30,000,000 for
fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years to carry out this subpart.] such
sums as may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years to carry out this subpart.
* * * * * * *
SEC. 712. INSTITUTIONAL ELIGIBILITY.
(a) Eligibility Criteria.-- * * *
[(b) Designation of Areas of National Need.--After
consultation with appropriate Federal and nonprofit agencies
and organizations, the Secretary shall designate areas of
national need. In making such designations, the Secretary shall
take into account the extent to which the interest in the area
is compelling, the extent to which other Federal programs
support postbaccalaureate study in the area concerned, and an
assessment of how the program could achieve the most
significant impact with available resources.]
(b) Designation of Areas of National Need.--After
consultation with appropriate Federal and nonprofit agencies
and organizations, including the National Science Foundation,
the Department of Defense, the Department of Homeland Security,
the National Academy of Sciences, and the Bureau of Labor
Statistics, the Secretary shall designate areas of national
need. In making such designations, the Secretary shall take
into consideration--
(1) the extent to which the interest in the area is
compelling;
(2) the extent to which other Federal programs
support postbaccalaureate study in the area concerned;
(3) an assessment of how the program may achieve the
most significant impact with available resources; and
(4) an assessment of current and future professional
workforce needs of the United States.
* * * * * * *
SEC. 714. AWARDS TO GRADUATE STUDENTS.
(a) Commitments to Graduate Students.--
(1) In general.-- * * *
* * * * * * *
(b) Amount of Stipends.--The Secretary shall make payments
to institutions of higher education for the purpose of paying
stipends to individuals who are awarded fellowships under this
subpart. The stipends the Secretary establishes shall reflect
the purpose of the program under this supbart to encourage
highly talented students to undertake graduate study as
described in this subpart. In the case of an individual who
receives such individual's first stipend under this subpart in
academic year [1999-2000] 2006-2007 or any succeeding academic
year, such stipend shall be set at a level of support equal to
that provided by the National Science Foundation [graduate
fellowships] Graduate Research Fellowship Program, except such
amount shall be adjusted as necessary so as not to exceed the
fellow's demonstrated level of need as determined under part F
of title IV.
(c) Treatment of Institutional Payments.--An institution of
higher education that makes institutional payments for tuition
and fees on behalf of individuals supported by fellowships
under this subpart in amounts that exceed the institutional
payments made by the Secretary pursuant to section [716(a)]
715(a) may count such excess toward the amounts the institution
is required to provide pursuant to section [714(b)(2)]
713(b)(2).
* * * * * * *
SEC. 715. ADDITIONAL ASSISTANCE FOR COST OF EDUCATION.
(a) Institutional Payments.--
(1) In general.--The Secretary shall (in addition to
stipends paid to individuals under this subpart) pay to
the institution of higher education, for each
individual awarded a fellowship under this subpart at
such institution, an institutional allowance. Except as
provided in paragraph (2), such allowance shall be, for
[1999-2000] 2006-2007 and succeeding academic years,
the same amount as the institutional payment made for
[1998-1999] 2005-2006 adjusted annually thereafter in
accordance with inflation as determined by the
Department of Labor's Consumer Price Index for the
previous calendar year.
* * * * * * *
SEC. 716. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated [$35,000,000 for
fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years to carry out this subpart.] such
sums as may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years to carry out this subpart.
* * * * * * *
Subpart 3--Thurgood Marshall Legal Educational Opportunity Program
SEC. 721. LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.
(a) Program Authority.-- * * *
* * * * * * *
(g) Stipends.-- * * *
(h) Authorization of Appropriations.--Thre are authorized
to be appropriated to carry out this section [$5,000,000 for
fiscal year 1999 and each of the 4 succeeding fiscal years.]
such sums as may be necessary for fiscal year 2006 and each of
the 5 succeeding fiscal years.
* * * * * * *
PART B--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION
SEC. 741. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.
(a) Authority.-- * * *
(1) * * *
(2) * * *
[(3) the establishment of institutions and programs
based on the technology of communications;]
(3) the establishment and continuation of
institutions, programs, consortia, collaborations, and
other joint efforts based on the technology of
communications, including those efforts that utilize
distance education and technological advancements to
educate and train postsecondary students (including
health professionals serving medically underserved
populations);
(4) * * *
(5) * * *
(6) * * *
(7) the introduction of reforms in graduate
education, in the structure of academic professions,
and in the recruitment and retention of faculties;
[and]
(8) the creation of new institutions and programs for
examining and awarding credentials to individuals, and
the introduction of reforms in current institutional
practices related thereto[.];
(9) the introduction of reforms in remedial
education, including English language instruction, to
customize remedial courses to student goals and help
students progress rapidly from remedial courses into
core courses and through program completion;
(10) the creation of consortia that join diverse
institutions of higher education for the purpose of
integrating curricular and co-curricular
interdisciplinary study; and
(11) providing support and assistance to programs
implementing integrated education reform services in
order to improve secondary school graduation and
college attendance and completion rates for
disadvantaged students.
* * * * * * *
SEC. 744. SPECIAL PROJECTS.
(a) Grant Authority.-- * * *
(b) * * *
[(c) Areas of National Need.--Areas of national need shall
initially included, but shall not be limited to, the following:
[(1) Institutional restructuring to improve learning
and promote productivity, efficiency, quality
improvement, and cost and price control.
[(2) Articulation between 2- and 4-year institutions
of higher education, including developing innovative
methods for ensuring the successful transfer of
students from 2- to 4-year institutions of higher
education.
[(3) Evaluation and dissemination of model programs.
[(4) International cooperation and student exchange
among postsecondary educational institutions.]
(c) Areas of National Need.--Areas of national need shall
include, at a minimum, the following:
(1) Institutional restructuring to improve learning
and promote productivity, efficiency, quality
improvement, and cost and price control.
(2) Improvements in academic instruction and student
learning, including efforts designed to assess the
learning gains made by postsecondary students.
(3) Articulation between 2- and 4-year institutions
of higher education, including developing innovative
methods for ensuring the successful transfer of
students from 2- to 4-year institutions of higher
education.
(4) Development, evaluation and dissemination of
model programs, including model core curricula that--
(A) provide students with a broad and
integrated knowledge base;
(B) include, at a minimum, broad survey
courses in English literature, American and
world history, American political institutions,
economics, philosophy, college-level
mathematics, and the natural sciences; and
(C) include sufficient study of a foreign
language to lead to reading and writing
competency in the foreign language.
(5) International cooperation and student exchanges
among postsecondary educational institutions.
* * * * * * *
SEC. 745. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part [$30,000,00 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.] such sums
as may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
* * * * * * *
SEC. 762. GRANTS AUTHORIZED.
(a) Competitive Grants Authorized.-- * * *
(b) Duration; Activities.--
(1) Duration.--Grants under this part shall be
awarded for a period of 3 years.
(2) Authorized Activities.--Grants under this part
shall be used to carry out one or more of the following
activities:
(A) Teaching methods and strategies.--The
development of innovative, effective, and
efficient teaching methods and strategies to
provide faculty and administrators with the
skills and supports necessary [to teach
students with disabilities] to teach and meet
the academic and programmatic needs of students
with disabilities in order to improve retention
and completion of postsecondary education. Such
methods and strategies may include inservice
training, professional development, customized
and general technical assistance, workshops,
summer institutes, distance learning, and
training in the use of assistive and education
technology.
(B) Effective transition practices.--The
development of innovative and effective
teaching methods and strategies to ensure the
successful transition of students with
disabilities from secondary school to
postsecondary education.
[(B)] (C) Synthesizing research and
information.--Synthesizing research and other
information related to the provision of
postsecondary educational services to students
with disabilities[.], including data on the
postsecondary education of and impact on
subsequent employment of students with
disabilities. Such research, information, and
data shall be made publicly available and
accessible.
(D) Distance learning.--The development of
innovative and effective teaching methods and
strategies to provide faculty and
administrators with the ability to provide
accessible distance education programs or
classes that would enhance access of students
with disabilities to higher education,
including the use of accessible curriculum and
electronic communication for instruction and
advisement.
(E) Disability career pathways.--Training and
providing support to secondary and
postsecondary staff to encourage interest in,
enhance awareness and understanding of, provide
educational opportunities in, teach practical
skills related to, and offer work-based
opportunities in, disability related fields,
among students, including students with
disabilities. Such training and support may
include developing means to offer students
credit-bearing, college-level coursework, and
career and educational counseling.
[(C)] (F) Professional development and
training sessions.--Conducting professional
development and training sessions for faculty
and administrators from other institutions of
higher education to enable the faculty and
administrators to meet the postsecondary
educational needs of students with
disabilities.
(G) Accessibility of education.--Making
postsecondary education more accessible to
students with disabilities through curriculum
development.
(3) Mandatory evaluation and dissemination.--Grants
under this part shall be used for evaluation, and
dissemination to other institutions of higher
education, of the information obtained through the
activities described in [subparagraphs (A) through (C)]
subparagraphs (A) through (G).
(c) Considerations in Making Awards.--In awarding grants,
contracts, or cooperative agreements under this section, the
Secretary shall consider the following:
(1) * * *
* * * * * * *
(d) Report.--The Secretary shall prepare and disseminate a
report reviewing the activities of the demonstration projects
authorized under this part and providing guidance and
recommendations on how successful projects can be replicated.
* * * * * * *
SEC. 763. APPLICATIONS
Each institution of higher education desiring to receive a
grant, contract, or cooperative agreement under this part shall
submit an application to the Secretary at such time, in such
manner, and accompanied by such information as the Secretary
may require. Each application shall include--
[(1) a description of how such institution plans to
address each of the activities required under this
part;]
(1) a description of how such institution plans to
address the activities allowed under this part;
(2) a description of how the institution consulted
with a broad range of people within the institution to
develop activities for which assistance is sought;
[and]
(3) a description of how the institution will
coordinate and collaborate with the office that
provides services to students with disabilities within
the institution[.] ; and
(4) a description of the extent to which the
institution will work to replicate the research based
and best practices of institutions of higher education
with demonstrated success in serving students with
disabilities.
* * * * * * *
SEC. 765. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for this part
[$10,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.] such sums
as may be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
* * * * * * *
TITLE VIII--MISCELLANEOUS
PART A--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM
SEC. 811. MATHEMATICS AND SCIENCE SCHOLARS PROGRAM.
(a) Program Authorized.--The Secretary is authorized to award
grants to States, on a competitive basis, to enable the States
to award eligible students, who complete a rigorous secondary
school curriculum in mathematics and science, scholarships for
undergraduate study.
(b) Eligible Students.--A student is eligible for a
scholarship under this section if the student is a full-time
undergraduate student in the student's first and second year of
study who has completed a rigorous secondary school curriculum
in mathematics and science.
(c) Rigorous Curriculum.--Each participating State shall
determine the requirements for a rigorous secondary school
curriculum in mathematics and science described in subsection
(b).
(d) Priority for Scholarships.--The Governor of a State may
set a priority for awarding scholarships under this section for
particular eligible students, such as students attending
schools in high-need areas, students who are from groups
underrepresented in the fields of mathematics, science, and
engineering, students served by local educational agencies that
do not meet or exceed State standards in mathematics and
science, or students with regional or geographic needs as
determined appropriate by the Governor.
(e) Amount and Duration of Scholarship.--The Secretary shall
award a grant under this section--
(1) in an amount that does not exceed $1,000; and
(2) for not more than 2 years of undergraduate study.
(f) Matching Requirement.--In order to receive a grant under
this section, a State shall provide matching funds for the
scholarships awarded under this section in an amount equal to
50 percent of the Federal funds received.
(g) Authorization.--There are authorized to be appropriated
to carry out this section such sums as may be necessary for
fiscal year 2006 and each of the 5 succeeding fiscal years.
PART B--POSTSECONDARY EDUCATION ASSESSMENT
SEC. 821. POSTSECONDARY EDUCATION ASSESSMENT.
(a) Contract for Assessment.--The Secretary shall enter into
a contract, with an independent, bipartisan organization with
specific expertise in public administration and financial
management, to carry out an independent assessment of the cost
factors associated with the cost of tuition at institutions of
higher education.
(b) Timeframe.--The Secretary shall enter into the contract
described in subsection (a) not later than 90 days after the
date of enactment of the Higher Education Amendments of 2005.
(c) Matters Assessed.--The assessment described in subsection
(a) shall--
(1) examine the key elements driving the cost factors
associated with the cost of tuition at institutions of
higher education during academic year 2000 and
succeeding academic years;
(2) identify and evaluate measures being used to
control postsecondary education costs;
(3) identify and evaluate effective measures that may
be utilized to control postsecondary education costs in
the future; and
(4) identify systemic approaches to monitor future
postsecondary education cost trends and postsecondary
education cost control mechanisms.
PART C--JOB SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR INDUSTRIES
SEC. 831. JOB SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR INDUSTRIES.
(a) Grants Authorized.--The Secretary is authorized to award
grants, on a competitive basis, to eligible partnerships to
enable the eligible partnerships to provide relevant job skill
training in high-growth industries or occupations.
(b) Definitions.--In this section:
(1) Eligible partnership.--The term ``eligible
partnership'' means a partnership--
(A) between an institution of higher
education and a local board (as such term is
defined in section 101 of the Workforce
Investment Act of 1998); or
(B) if an institution of higher education is
located within a State that does not operate
local boards, between the institution of higher
education and a State board (as such term is
defined in section 101 of the Workforce
Investment Act of 1998).
(2) Nontraditional student.--The term
``nontraditional student'' means a student who--
(A) is independent, as defined in section
480(d);
(B) attends an institution of higher
education--
(i) on less than a full-time basis;
(ii) via evening, weekend, modular,
or compressed courses; or
(iii) via distance learning methods;
or
(C) has delayed enrollment at an institution
of higher education.
(3) Institution of higher education.--The term
``institution of higher education'' means an
institution of higher education, as defined in section
101(b), that offers a 1- or 2-year program of study
leading to a degree or certificate.
(c) Application.--
(1) In general.--Each eligible partnership that
desires a grant under this section shall submit an
application to the Secretary at such time, in such
manner, and accompanied by such additional information
as the Secretary may require.
(2) Contents.--Each application submitted under
paragraph (1) shall include a description of--
(A) how the eligible partnership, through the
institution of higher education, will provide
relevant job skill training for students to
enter high-growth occupations or industries;
(B) local high-growth occupations or
industries; and
(C) the need for qualified workers to meet
the local demand of high-growth occupations or
industries.
(d) Award Basis.--In awarding grants under this section, the
Secretary shall--
(1) ensure an equitable distribution of grant funds
under this section among urban and rural areas of the
United States; and
(2) take into consideration the capability of the
institution of higher education--
(A) to offer relevant, high quality
instruction and job skill training for students
entering a high-growth occupation or industry;
(B) to involve the local business community
and to place graduates in the community in
employment in high-growth occupations or
industries;
(C) to provide secondary students with dual-
enrollment or concurrent enrollment options;
(D) to serve nontraditional or low-income
students, or adult or displaced workers; and
(E) to serve students from rural or remote
communities.
(e) Use of Funds.--Grant funds provided under this section
may be used--
(1) to expand or create academic programs or programs
of training that provide relevant job skill training
for high-growth occupations or industries;
(2) to purchase equipment which will facilitate the
development of academic programs or programs of
training that provide training for high-growth
occupations or industries;
(3) to support outreach efforts that enable students
to attend institutions of higher education with
academic programs or programs of training focused on
high-growth occupations or industries;
(4) to expand or create programs for distance,
evening, weekend, modular, or compressed learning
opportunities that provide relevant job skill training
in high-growth occupations or industries;
(5) to build partnerships with local businesses in
high-growth occupations or industries;
(6) to support curriculum development related to
entrepreneurial training; and
(7) for other uses that the Secretary determines to
be consistent with the intent of this section.
(f) Requirements.--
(1) Fiscal agent.--For the purpose of this section,
the institution of higher education in an eligible
partnership shall serve as the fiscal agent and grant
recipient for the eligible partnership.
(2) Duration.--The Secretary shall award grants under
this section for periods that may not exceed 5 years.
(3) Supplement, not supplant.--Funds made available
under this section shall be used to supplement and not
supplant other Federal, State, and local funds
available to the eligible partnership for carrying out
the activities described in subsection (e).
(g) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this part such sums as may be
necessary for fiscal year 2006 and each of the 5 succeeding
fiscal years.
PART D--GRANT PROGRAM TO INCREASE STUDENT RETENTION AND PROMOTE
ARTICULATION AGREEMENTS
SEC. 841. GRANT PROGRAM TO INCREASE STUDENT RETENTION AND PROMOTE
ARTICULATION AGREEMENTS.
(a) Authorization of Program.--The Secretary shall award
grants, on a competitive basis, to eligible institutions to
enable the institutions to--
(1) focus on increasing traditional and
nontraditional student retention at such institutions;
and
(2) promote articulation agreements among different
institutions that will increase the likelihood of
progression of students at such institutions to
baccalaureate degrees.
(b) Definition of Eligible Institution.--In this section, the
term ``eligible institution'' means an institution of higher
education (as defined in section 101(a)) where not less than 40
percent of such institution's student body receives financial
aid under subpart 1 of part A of title IV.
(c) Application.--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 require, including the number
of students proposed to be served and a description of the
services that will be provided.
(d) Mandatory Activities.--An eligible institution that
receives a grant under this section shall use the grant funds
to carry out each of the following:
(1) Offering counseling and advisement services to
help students adapt to postsecondary education and
select appropriate coursework.
(2) Making mentors available to students who are at
risk for not completing a degree.
(3) Providing detailed assistance to students who
request help in understanding--
(A) the options for financing their
education, including information on grants,
loans, and loan repayment programs;
(B) the process of applying for financial
assistance;
(C) the outcome of their financial assistance
application; and
(D) any unanticipated problems related to
financing their education that arise.
(4) Offering tutoring to students at risk of dropping
out of school with any course or subject.
(5) Designing and implementing innovative ways to
improve retention in and completion of courses, such as
enrolling students in cohorts, providing counseling, or
creating bridge programs that customize courses to the
needs of special population students.
(6) Conducting outreach activities so that all
students know that these services are available and are
aware of how to access the services.
(7) Creating articulation agreements to promote
smooth transition from two year to four year programs.
(8) Making services listed in paragraphs (1) through
(5) available in students' native languages, if it is
not English, if the percentage of students needing
translation services in a specific language exceeds 5
percent.
(e) Permissible Activities.--An eligible institution that
receives a grant under this section may use grant funds to
carry out any of the following activities:
(1) Designing innovative course schedules to meet the
needs of working adults, such as online, modular,
compressed, or other alternative methods.
(2) Offering childcare during the hours when students
have class or are studying.
(3) Providing transportation assistance to students
that helps such students manage their schedules.
(4) Partnering with local businesses to create
flexible work-hour programs so that students can
balance work and school.
(5) Offering time management or financial literacy
seminars to help students improve their management
skills.
(6) Improving professional development to align
instruction with innovative program designs.
(7) Any other activities the Secretary believes will
promote retention of students attending eligible
institutions.
(f) Technical Assistance.--The Secretary may enter into a
contract with a private entity to provide such technical
assistance to grantees under this section as the Secretary
determines appropriate.
(g) Evaluation.--The Secretary shall conduct an evaluation of
program impacts under the demonstration program, and shall
disseminate to the public the findings from the evaluation and
information on best practices.
(h) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this and such sums as may be
necessary for fiscal year 2006 and each of the 5 succeeding
fiscal years.
PART E--AMERICAN HISTORY FOR FREEDOM
SEC. 851. AMERICAN HISTORY FOR FREEDOM.
(a) Grants Authorized.--The Secretary is authorized to award
3-year grants, on a competitive basis, to eligible institutions
to establish or strengthen postsecondary academic programs or
centers that promote and impart knowledge of--
(1) traditional American history;
(2) the history and nature of, and threats to, free
institutions; or
(3) the history and achievements of Western
civilization.
(b) Definitions.--In this section:
(1) Eligible institution.--The term ``eligible
institution'' means an institution of higher education
as defined in section 101.
(2) Free institution.--The term ``free institution''
means an institution that emerged out of Western
civilization, such as democracy, constitutional
government, individual rights, market economics,
religious freedom and religious tolerance, and freedom
of thought and inquiry.
(3) Traditional american history.--The term
``traditional American history'' means--
(A) the significant constitutional,
political, intellectual, economic, and foreign
policy trends and issues that have shaped the
course of American history; and
(B) the key episodes, turning points, and
leading figures involved in the constitutional,
political, intellectual, diplomatic, and
economic history of the United States.
(c) Application.--
(1) In general.--Each eligible institution that
desires a grant under this part shall submit an
application to the Secretary at such time, in such
manner, and accompanied by such additional information
as the Secretary may require.
(2) Contents.--Each application submitted under
subsection (a) shall include a description of --
(A) how funds made available under this part
will be used for the activities set forth under
subsection (e), including how such activities
will increase knowledge with respect to
traditional American history, free
institutions, or Western civilization;
(B) how the eligible institution will ensure
that information about the activities funded
under this part is widely disseminated pursuant
to subsection (e)(1)(B);
(C) any activities to be undertaken pursuant
to subsection (e)(2)(A), including
identification of entities intended to
participate;
(D) how funds made available under this part
shall be used to supplement and not supplant
non-Federal funds available for the activities
described in subsection (e); and
(E) such fiscal controls and accounting
procedures as may be necessary to ensure proper
disbursement of and accounting for funding made
available to the eligible institution under
this part.
(d) Award Basis.--In awarding grants under this part, the
Secretary shall take into consideration the capability of the
eligible institution to--
(1) increase access to quality programming that
expands knowledge of traditional American history, free
institutions, or Western civilization;
(2) involve personnel with strong expertise in
traditional American history, free institutions, or
Western civilization; and
(3) sustain the activities funded under this part
after the grant has expired.
(e) Use of Funds.--
(1) Required use of funds.--Funds provided under this
part shall be used to--
(A) establish or strengthen academic programs
or centers focused on traditional American
history, free institutions, or Western
civilization, which may include--
(i) design and implementation of
programs of study, courses, lecture
series, seminars, and symposia;
(ii) development, publication, and
dissemination of instructional
materials;
(iii) research;
(iv) support for faculty teaching in
undergraduate and, if applicable,
graduate programs;
(v) support for graduate and
postgraduate fellowships, if
applicable; or
(vi) teacher preparation initiatives
that stress content mastery regarding
traditionalAmerican history, free
institutions, or Western civilization; and
(B) conduct outreach activities to ensure
that information about the activities funded
under this part is widely disseminated--
(i) to undergraduate students
(including students enrolled in teacher
education programs, if applicable);
(ii) to graduate students (including
students enrolled in teacher education
programs), if applicable;
(iii) to faculty;
(iv) to local educational agencies;
and
(v) within the local community.
(2) Allowable uses of funds.--Funds provided under
this part may be used to support--
(A) collaboration with entities such as--
(i) local educational agencies, for
the purpose of providing elementary,
middle and secondary school teachers an
opportunity to enhance their knowledge
of traditional American history, free
institutions, or Western civilization;
and
(ii) nonprofit organizations whose
mission is consistent with the purpose
of this part, such as academic
organizations, museums, and libraries,
for assistance in carrying out
activities described under subsection
(a); and
(B) other activities that meet the purposes
of this part.
(f) Authorization of Appropriations.--For the purpose of
carrying out this part, there are authorized to be appropriated
such sums as may be necessary for fiscal year 2006 and each of
the 5 succeeding fiscal years.
PART F--TEACH FOR AMERICA
SEC. 861. TEACH FOR AMERICA.
(a) Definitions.--
(1) In general.--The terms ``highly qualified'',
``local educational agency'', and ``Secretary'' have
the meanings given the terms in section 9101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
(2) Grantee.--The term ``grantee'' means Teach For
America, Inc.
(3) High need.--The term ``high need'', when used
with respect to a local educational agency, means a
local educational agency experiencing a shortage of
highly qualified teachers.
(b) Grants Authorized.--The Secretary is authorized to award
a grant to Teach For America, Inc., the national teacher corps
of outstanding recent college graduates who commit to teach for
2 years in underserved communities in the United States, to
implement and expand its program of recruiting, selecting,
training, and supporting new teachers.
(c) Requirements.--In carrying out the grant program under
subsection (b), the Secretary shall enter into an agreement
with the grantee under which the grantee agrees to use the
grant funds provided under this section--
(1) to provide highly qualified teachers to high need
local educational agencies in urban and rural
communities;
(2) to pay the cost of recruiting, selecting,
training, and supporting new teachers; and
(3) to serve a substantial number and percentage of
underserved students.
(d) Authorized Activities.--
(1) In general.--Grant funds provided under this
section shall be used by the grantee to carry out each
of the following activities:
(A) Recruiting and selecting teachers through
a highly selective national process.
(B) Providing preservice training to the
teachers through a rigorous summer institute
that includes hands-on teaching experience and
significant exposure to education coursework
and theory.
(C) Placing the teachers in schools and
positions designated by partner local
educational agencies as high need placements
serving underserved students.
(D) Providing ongoing professional
development activities for the teachers' first
2 years in the classroom, including regular
classroom observations and feedback, and
ongoing training and support.
(2) Limitation.--The grantee shall use all grant
funds received under this section to support activities
related directly to the recruitment, selection,
training, and support of teachers as described in
subsection (a).
(e) Reports and Evaluations.--
(1) Annual report.--The grantee shall provide to the
Secretary an annual report that includes--
(A) data on the number and quality of the
teachers provided to local educational agencies
through a grant under this section;
(B) an externally conducted analysis of the
satisfaction of local educational agencies and
principals with the teachers so provided; and
(C) comprehensive data on the background of
the teachers chosen, the training the teachers
received, the placement sites of the teachers,
the professional development of the teachers,
and the retention of the teachers.
(2) Study.--
(A) In general.--From funds appropriated
under subsection (f), the Secretary shall
provide for a study that examines the
achievement levels of the students taught by
the teachers assisted under this section.
(B) Achievement gains compared.--The study
shall compare, within the same schools, the
achievement gains made by students taught by
teachers who are assisted under this section
with the achievement gains made by students
taught by teachers who are not assisted under
this section.
(3) Requirements.--The Secretary shall provide for
such a study not less than once every 3 years, and each
such study shall include multiple placement sites and
multiple schools within placement sites.
(4) Peer review standards.--Each such study shall
meet the peer review standards of the education
research community.
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated to carry out this section such sums as may
be necessary for fiscal year 2006 and each of the 5
succeeding fiscal years.
(2) Limitation.--The grantee shall not use more than
25 percent of Federal funds from any source for
administrative costs.
PART G--PATSY T. MINK FELLOWSHIP PROGRAM
SEC. 871. PATSY T. MINK FELLOWSHIP PROGRAM.
(a) Purpose.--
(1) In general.--It is the purpose of this section to
provide, through eligible institutions, a program of
fellowship awards to assist highly qualified minorities
and women to acquire the doctoral degree, or highest
possible degree available, in academic areas in which
such individuals are underrepresented for the purpose
of enabling such individuals to enter the higher
education professoriate.
(2) Designation.--Each recipient of a fellowship
award from an eligible institution receiving a grant
under this section shall be known as a ``Patsy T. Mink
Graduate Fellow''.
(b) Definitions.--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 graduate degree.
(c) Program Authorized.--
(1) Grants by secretary.--
(A) In general.--The Secretary shall award
grants to eligible institutions to enable such
institutions to make fellowship awards to
individuals in accordance with the provisions
of this section.
(B) Priority consideration.--In awarding
grants under this section, the Secretary shall
consider the eligible institution's prior
experience in producing doctoral degree, or
highest possible degree available, holders who
are minorities and women, and shall give
priority consideration in making grants under
this section to those eligible institutions
with a demonstrated record of producing
minorities and women who have earned such
degrees.
(2) Applications.--
(A) In general.--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 require.
(B) Applications made on behalf.--
(i) In general.--The following
entities may submit an application on
behalf of an eligible institution:
(I) A graduate school or
department of such institution.
(II) A graduate school or
department of such institution
in collaboration with an
undergraduate college or
university of such institution.
(III) An organizational unit
within such institution that
offers a program of
postbaccalaureate study leading
to a graduate degree, including
an interdisciplinary or an
interdepartmental program.
(IV) A nonprofit organization
with a demonstrated record of
helping minorities and women
earn postbaccalaureate degrees.
(ii) Nonprofit organizations.--
Nothing in this paragraph shall be
construed to permit the Secretary to
award a grant under this section to an
entity other than an eligible
institution.
(3) Selection of applications.--In awarding grants
under subsection (a), the Secretary shall--
(A) take into account--
(i) the number and distribution of
minority and female faculty nationally;
(ii) the current and projected need
for highly trained individuals in all
areas of the higher education
professoriate; and
(iii) the present and projected need
for highly trained individuals in
academic career fields in which
minorities and women are
underrepresented in the higher
education professoriate; and
(B) consider the need to prepare a large
number of minorities and women generally in
academic career fields of high national
priority, especially in areas in which such
individuals are traditionally underrepresented
in college and university faculties, such as
mathematics, science, technology, and
engineering.
(4) Distribution and amounts of grants.--
(A) Equitable distribution.--In awarding
grants under this section, the Secretary shall,
to the maximum extent feasible, ensure an
equitable geographic distribution of awards and
an equitable distribution among public and
independent eligible institutions that apply
for grants under this section and that
demonstrate an ability to achieve the purpose
of this section.
(B) Special rule.--To the maximum extent
practicable, the Secretary shall use not less
than 30 percent of the amount appropriated
pursuant to subsection (f) to award grants to
eligible institutions that--
(i) are eligible for assistance under
title III or title V; or
(ii) have formed a consortium that
includes both non-minority serving
institutions and minority serving
institutions.
(C) Allocation.--In awarding grants under
this section, the Secretary shall allocate
appropriate funds to those eligible
institutions whose applications indicate an
ability to significantly increase the numbers
of minorities and women entering the higher
education professoriate and that commit
institutional resources to the attainment of
the purpose of this section.
(D) Number of fellowship awards.--An eligible
institution that receives a grant under this
section shall make not less than 15 fellowship
awards.
(E) Reallotment.--If the Secretary determines
that an eligible institution awarded a grant
under this section is unable to use all of the
grant funds awarded to the institution, the
Secretary shall reallot, on such date during
each fiscal year as the Secretary may fix, the
unused funds to other eligible institutions
that demonstrate that such institutions can use
any reallocated grant funds to make fellowship
awards to individuals under this section.
(5) Institutional allowance.--
(A) In general.--
(i) Number of allowances.--In
awarding grants under this section, the
Secretary shall pay to each eligible
institution awarded a grant, for each
individual awarded a fellowship by such
institution under this section, an
institutional allowance.
(ii) Amount.--Except as provided in
paragraph (3), an institutional
allowance shall be in an amount equal
to, for academic year 2006-2007 and
succeeding academic years, the amount
of institutional allowance made to an
institution of higher education under
section 715 for such academic year.
(B) Use of funds.--Institutional allowances
may be expended in the discretion of the
eligible institution and may be used to
provide, except as prohibited under paragraph
(4), academic support and career transition
services for individuals awarded fellowships by
such institution.
(C) Reduction.--The institutional allowance
paid under paragraph (1) shall be reduced by
the amount the eligible institution charges and
collects from a fellowship recipient for
tuition and other expenses as part of the
recipient's instructional program.
(D) Use for overhead prohibited.--Funds made
available under this section may not be used
for general operational overhead of the
academic department or institution receiving
funds under this section.
(d) Fellowship Recipients.--
(1) Authorization.--An eligible institution that
receives a grant under this section shall use the grant
funds to make fellowship awards to minorities and women
who are enrolled at such institution in a doctoral
degree, or highest possible degree available, program
and--
(A) intend to pursue a career in instruction
at--
(i) an institution of higher
education (as the term is defined in
section 101);
(ii) an institution of higher
education (as the term is defined in
section 102(a)(1));
(iii) an institution of higher
education outside the United States (as
the term is described in section
102(a)(2)); or
(iv) a proprietary institution of
higher education (as the term is
defined in section 102(b)); and
(B) sign an agreement with the Secretary
agreeing--
(i) to begin employment at an
institution described in paragraph (1)
not later than 3 years after receiving
the doctoral degree or highest possible
degree available, which 3-year period
may be extended by the Secretary for
extraordinary circumstances; and
(ii) to be employed by such
institution for 1 year for each year of
fellowship assistance received under
this section.
(2) Failure to comply.--If an individual who receives
a fellowship award under this section fails to comply
with the agreement signed pursuant to subsection
(a)(2), then the Secretary shall do one or both of the
following:
(A) Require the individual to repay all or
the applicable portion of the total fellowship
amount awarded to the individual by converting
the balance due to a loan at the interest rate
applicable to loans made under part B of title
IV.
(B) Impose a fine or penalty in an amount to
be determined by the Secretary.
(3) Waiver and modification.--
(A) Regulations.--The Secretary shall
promulgate regulations setting forth criteria
to be considered in granting a waiver for the
service requirement under subsection (a)(2).
(B) Content.--The criteria under paragraph
(1) shall include whether compliance with the
service requirement by the fellowship recipient
would be--
(i) inequitable and represent an
extraordinary hardship; or
(ii) deemed impossible because the
individual is permanently and totally
disabled at the time of the waiver
request.
(4) Amount of fellowship awards.--Fellowship awards
under this section shall consist of a stipend in an
amount equal to the level of support provided to the
National Science Foundation graduate fellows, except
that such stipend shall be adjusted as necessary so as
not to exceed the fellow's tuition and fees or
demonstrated need (as determined by the institution of
higher education where the graduate student is
enrolled), whichever is greater.
(5) Academic progress required.--An individual
student shall not be eligible to receive a fellowship
award--
(A) except during periods in which such
student is enrolled, and such student is
maintaining satisfactory academic progress in,
and devoting essentially full time to, study or
research in the pursuit of the degree for which
the fellowship support was awarded; and
(B) if the student is engaged in gainful
employment, other than part-time employment in
teaching, research, or similar activity
determined by the eligible institution to be
consistent with and supportive of the student's
progress toward the appropriate degree.
(e) Rule of Construction.--Nothing in this section shall
be construed to require an eligible institution that receives a
grant under this section--
(1) to grant a preference or to differentially treat
any applicant for a faculty position as a result of the
institution's participation in the program under this
section; or
(2) to hire a Patsy T. Mink Fellow who completes this
program and seeks employment at such institution.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2006 for each of the 5 succeeding
fiscal years.
PART H--STUDY ON COLLEGE ENROLLMENT BY SECONDARY SCHOOLS
SEC. 881. STUDY ON COLLEGE ENROLLMENT BY SECONDARY SCHOOLS.
The Secretary shall contract with a not-for-profit
organization, with demonstrated expertise in increasing college
enrollment rates in low-income communities nationwide, to make
publicly available year-to-year college enrollment rate trends
by secondary schools, in full compliance with the Family
Educational Rights and Privacy Act of 1974 (FERPA).
* * * * * * *
20 U.S.C. 1078-10
HISTORICAL AND STATUTORY NOTES
* * * * * * *
Effective and Applicability Provisions
2004 Acts. Pub. L. 108-409, Sec. 3(b)(3), Oct. 30, 2004,
118 Stat. 2301, provided that: ``The amendments made by this
subsection [amending subsec. (c)(3) of this section and 20
U.S.C.A. Sec. 1087j] shall apply only with respect to eligible
individuals who are new borrowers (as such term is defined in
103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) on or
after October 1, 1998[, and before October 1, 2005].''
EDUCATION OF THE DEAF ACT OF 1986
* * * * * * *
TITLE I--GALLAUDET UNIVERSITY; NATIONAL TECHNICAL INSTITUTE FOR THE
DEAF; OTHER PROGRAMS
* * * * * * *
SEC. 104. [ELEMENTARY AND SECONDARY EDUCATION PROGRAMS] LAURENT CLERC
NATIONAL DEAF EDUCATION CENTER.
(a) General Authority.--(1)(A) The Board of Trustees of
Gallaudet University is authorized, in accordance with the
agreement under section 105, to maintain and operate the
Laurent Clerc National Deaf Education Center (referred to in
this section as the ``Clerc Center'') to carry out exemplary
elementary and secondary education programs, projects, and
activities for the primary purpose of developing, evaluating,
and disseminating innovative curricula, instructional
techniques and strategies, and materials that can be used in
various educational environments serving individuals who are
deaf or hard of hearing throughout the Nation.
* * * * * * *
(b) Administrative Requirements.--(1) The [elementary and
secondary education programs] Clerc Center shall--
(A) * * *
* * * * * * *
(2) To the extent possible, the [elementary and secondary
education programs] Clerc Center shall provide the services
required under paragraph (1)(B) in an equitable manner, based
on the national distribution of students who are deaf or hard
of hearing in educational environments as determined by the
Secretary for purposes of section 618(a)(1)\1\ of the
Individuals with Disabilities Education Act. Such educational
environments shall include--
(A) regular classes;
(B) resource rooms;
(C) separate classes;
(D) separate, public or private, nonresidential
schools; and
(E) separate, public or private, residential schools
and homebound or hospital environments.
* * * * * * *
(4) * * *
* * * * * * *
(5) The University, for purposes of the elementary and
secondary education programs carried out at the Clerc Center,
shall--
(A)(i) select challenging academic content standards,
challenging student academic achievement standards, and
academic assessments of a State, adopted and
implemented, as appropriate, pursuant to paragraphs (1)
and (3) of section 1111(b) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311(b)(1)
and (3)) and approved by the Secretary; and
(ii) implement such standards and assessments for
such programs by not later than the beginning of the
2008-2009 academic year;
(B) annually determine whether such programs at the
Clerc Center are making adequate yearly progress, as
determined according to the definition of adequate
yearly progress defined (pursuant to section
1111(b)(2)(C) of such Act (20 U.S.C. 6311(b)(2)(C))) by
the State that has adopted and implemented the
standards and assessments selected under subparagraph
(A)(i); and
(C) publicly report the results of the academic
assessments implemented under subparagraph (A) and
whether the programs at the Clerc Center are making
adequate yearly progress, as determined under
subparagraph (B).
* * * * * * *
SEC. 105. AGREEMENT WITH GALLAUDET UNIVERSITY.
(a) General Authority.-- * * *
* * * * * * *
(b) Provisions of Agreement.-- * * *
* * * * * * *
(4) provide that any laborer or mechanic employed by
any contractor or subcontractor in the performance of
work on any construction aided by Federal funds
appropriated for the benefit of the Kendall
Demonstration Elementary School or the Model Secondary
School for the Deal will be paid wages at rates not
less than those prevailing on similar construction in
the locality as determined by the Secretary of Labor in
accordance with [the Act of March 3, 1931 (40 U.S.C.
276a-276a-5) commonly referred to as the Davis-Bacon
Act] subchapter IV of chapter 31 of title 40, United
States Code, commonly referred to as the Davis-Bacon
Act; except that the Secretary of Labor shall have,
with respect to the labor standards specified in this
paragraph, the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.)
and [section 2 of the Act of June 13, 1934 (40 U.S.C.
276c] section 3145 of title 40, United States Code; and
* * * * * * *
SEC. 112. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
(a) General Authority.--(1) The Secretary is authorized to
establish or continue an agreement with [an institution of
higher education] the Rochester Institute of Technology,
Rochester, New York for the establishment and operation,
including construction and equipment, [of a] of the National
Technical Institute for the Deaf. [The Secretary, in
considering proposals from institutions of higher education to
enter into an agreement under this part, shall give preference
to institutions which are located in metropolitan industrial
areas].
(2) Notwithstanding the requirement under paragraph (1), if
the Secretary or the Rochester Institute of Technology
terminates the agreement under paragraph (1), the Secretary
shall consider proposals from other institutions of higher
education and enter into an agreement with 1 of such
institutions for the establishment and operation of a National
Technical Institution for the Deaf.
[(2)] (3) * * *
* * * * * * *
(b) Provisions of Agreement.-- * * *
(1) * * *
* * * * * * *
(3) provide that the Board of Trustees or other
governing body of the institution will prepare and
submit to the Secretary, no later than June 1 following
the fiscal year for which the report is submitted, an
annual report containing an accounting of all indirect
costs paid to the institution of higher education under
the agreement with the Secretary, which accounting the
Secretary shall transmit to the [Committee on Education
and Labor of the House of Representatives and to the
Committee on Labor and Human Resources of the Senate]
Committee on Education and the Workforce of the House
of Representatives and to the Committee on Health,
Education, Labor, and Pensions of the Senate, with such
comments and recommendations as the Secretary may deem
appropriate;
* * * * * * *
(5) provide that any laborer or mechanic employed by
any contractor or subcontractor in the performance of
work on any construction aided by Federal funds
appropriated for the benefit of NTID will be paid wages
at rates not less than those prevailing on similar
construction in the locality as determined by the
Secretary of Labor in accordance with [the Act of March
3, 1931 (40 U.S.C. 276a-276a-5) commonly referred to as
the Davis-Bacon Act]; subchapter IV of chapter 31 of
title 40, United States Code, commonly referred to as
the Davis-Bacon Act; except that the Secretary of Labor
shall have, with respect to the labor standards
specified in this paragraph, the authority and
functions set forth in Reorganization Plan Numbered 14
of 1950 (5 U.S.C. App.) and [section 2 of the Act of
June 13, 1934 (40 U.S.C. 276c] section 3145 of title
40, United States Code; and
* * * * * * *
PART C--OTHER PROGRAMS
SEC. 121. CULTURAL EXPERIENCES GRANTS.
(a) In General.--The Secretary shall, on a competitive basis,
make grants to, and enter into contracts and cooperative
agreements with, eligible entities to support the activities
described in subsection (b).
(b) Activities.--In carrying out this section, the Secretary
shall support activities providing cultural experiences,
through appropriate nonprofit organizations with a demonstrated
proficiency in providing such activities, that--
(1) enrich the lives of deaf and hard-of-hearing
children and adults;
(2) increase public awareness and understanding of
deafness and of the artistic and intellectual
achievements of deaf and hard-of-hearing persons; or
(3) promote the integration of hearing, deaf, and
hard-of-hearing persons through shared cultural,
educational, and social experiences.
(c) Applications.--An eligible entity that desires to receive
a grant, or enter into a contract or cooperative agreement,
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.
(d) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section such sums as may be
necessary for fiscal year 2006 and each of the 5 succeeding
fiscal years.
* * * * * * *
SEC. 203. AUDIT.
(a) General Accounting Office Authority.-- * * *
* * * * * * *
(b) Independent Financial and Compliance Audit.--
(1) In general.--Gallaudet University shall have an
annual independent financial and compliance audit made
of the programs and activities of the University,
including the national mission and school operations of
the elementary and secondary education programs at
Gallaudet. [The institution of higher education with
which the Secretary has an agreement under section 112
shall have an annual independent financial and
compliance audit made of the programs and activities of
such institution of higher education, including NTID,
and containing specific schedules and analyses of all
NTID funds, as determined by the Secretary.] The
institution of higher education that the Secretary has
an agreement with under section 112 shall have an
annual independent financial and compliance audit made
of NTID programs and activities. The audit shall follow
the cycle of the Federal fiscal year.
(2) Compliance.--As used in paragraph (1), compliance
means compliance with [sections 102(b), 105(b)(4),
112(b)(5), and 203(c), paragraphs (2) and (3) of
section 207(b), subsections (b)(2), (b)(3), and (c)
through f, of section 207, and subsections (b) and (c)
of section 210.] sections 102(b), 105(b)(4), 112(b)(5),
203(c), 207(b)(2), subsections (c) through (f) of
section 207, and subsections (b) and (c) of section
209.
(3) Submission of audits.--A copy of each audit
described in paragraph (1) shall be provided to the
Secretary and the Committee on Education and the
Workforce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of
the Senate within 15 days of acceptance of the audit by
the University of the institution authorized to
establish and operate the NTID under section 112(a), as
the case may be, but not later than January 10 of each
year.
(c) Limitations Regarding Expenditure of Funds.--
(1) In general.-- * * *
* * * * * * *
(2) Policies.--
(A) Not later than 180 days after the date of
enactment of the Education of the Deaf Act
Amendments of 1992, the University and NTID
shall develop policies, to be applied
uniformly, for the allowability of expenditures
for each institution. These policies should
reflect the unique nature of these
institutions. The principles established by the
Office of Management and Budget for costs of
educational institutions may be used as
guidance in developing these policies. General
principles relating to allowability and
reasonableness of all costs associated with the
operations of the institutions shall be
addressed. These policies shall be submitted to
the Secretary for review and comments, and to
the [Committee on Education and Labor of the
House of Representatives and the Committee on
Labor and Human Resources of the Senate]
Committee on Education and the Workforce of the
House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the
Senate.
* * * * * * *
SEC. 204. REPORTS.
The board of Trustees of Gallaudet University and the Board
of Trustees or other governing body of the institution of
higher education with which the Secretary has an agreement
under section 112 shall prepare and submit an annual report to
the Secretary, and to the [Committee on Education and Labor of
the House of Representatives and the Committee on Labor and
Human Resources of the Senate] Committee on Education and the
Workforce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate, not later
than 100 days after the end of each fiscal year, which shall
include the following:
(1) The number of students during the preceding
academic year who enrolled and whether these were
first-time enrollments, who graduated, who found
employment, or who left without completing a program of
study, reported under each of the programs of the
University (elementary, secondary, [preparatory,]
undergraduate, and graduate) and of NTID.
(2) For the preceding academic year, and to the
extent possible, the following data on individuals who
are deaf and from minority backgrounds and who are
students (at all educational levels) or employees:
(A) * * *
* * * * * * *
(C) The disposition of these students [upon
graduation/completion] on the date that is 1
year after the date of graduation or completion
of programs at NTID and at the University and
its elementary and secondary schools in
comparison to students from non-minority
backgrounds.
* * * * * * *
(3)(A) A summary of the annual audited financial
statements and auditor's report of the University, as
required under section 203, and (B) a summary of the
annual audited financial statements and auditor's
report [of the institution of higher education with
which the Secretary has an agreement under section 112,
including specific schedules and analyses for all NTID
funds, as required under section 203, and such
supplementary schedules presenting financial
information for NTID for the end of the Federal fiscal
year as determined by the Secretary.] of NTID programs
and activities.
* * * * * * *
SEC. 205. MONITORING, EVALUATION, AND REPORTING.
(a) Activities.-- * * *
(b) Report.--[The Secretary, as part of the annual report
required under section 426 of the Department of Education
Organization Act, shall include a description of] The Secretary
shall annually transmit information to Congress on the
monitoring and evaluation activities pursuant to subsection
(a), together with such recommendations, including
recommendations for legislation, as the Secretary may consider
necessary.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary for each of
the [fiscal years 1998 through 2003] fiscal years 2006 through
2010 to carry out the monitoring and evaluation activities
authorized under this section.
* * * * * * *
SEC. 206. LIAISON FOR EDUCATION PROGRAMS.
(a) Designation of Liaison.--[Not later than 30 days after
the date of enactment of this act, the] The Secretary shall
designate an individual in the Office of Special Education and
Rehabilitative Services of the Department of Education from
among individuals who have experience in the education of
individuals who are deaf to serve as liaison between the
Department and Gallaudet University, the National Technical
Institute for the Deaf, and other postsecondary educational
programs for individuals who are deaf under the Individuals
with Disabilities Education Act, the Rehabilitation Act of
1973, and other Federal or non-Federal agencies, institutions,
or organizations involved with the education or rehabilitation
of individuals who are deaf or hard of hearing.
* * * * * * *
SEC. 207. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
(a) Establishment of Programs.-- * * *
* * * * * * *
(h) Authorization of Appropriations.--
(1) In the case of the University, there are
authorized to be appropriated for the purposes of this
section such sums as may be necessary for each of the
[fiscal years 1998 through2003] fiscal years 2006
through 2010.
(2) In the case of NTID, there are authorized to be
appropriated for the purposes of this section such sums
as may be necessary for each of the [fiscal years 1998
through 2003] fiscal years 2006 through 2010.
* * * * * * *
SEC. 208. OVERSIGHT AND EFFECT OF AGREEMENTS.
(a) Oversight Activities.--Nothing in this Act shall be
construed to diminish the oversight activities of the
[Committee on Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House of
Representatives] Committee on Education and the Workforce of
the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate with respect to
any agreement entered into between the Secretary of Education
and Gallaudet University, and the institution of higher
education with which the Secretary has an agreement under part
B of title I.
* * * * * * *
SEC. 209. INTERNATIONAL STUDENTS.
(a) Enrollment.--[Effective with]
(1) In general.--Except as provided in paragraph (2),
effective with new admissions for academic year 1993-
1994 and each succeeding academic year, the University
(including [preparatory, undergraduate,] undergraduate
and graduate students) and NTID shall limit the
enrollment of international students to approximately
15 percent of the total postsecondary student
population enrolled respectively at the University or
NTID, except that in any school year no United States
citizen who is qualified to be admitted to the
University or NTID and applies for admission to the
University or NTID shall be denied admission because of
the admission of an international student.
(2) Distance learning.--International students who
participate in distance learning courses that are at
NTID or the University and who are residing outside of
the United States shall--
(A) not be counted as international students
for purposes of the cap on international
students under paragraph (1), except that in
any school year no United States citizen who
applies to participate in distance learning
courses that are at the University or NTID
shall be denied participation in such courses
because of the participation of an
international student in such courses; and
(B) not be charged a tuition surcharge, as
described in subsection (b).
[(b) Tuition Surcharge.--Effective with new admissions, the
tuition for postsecondary international students enrolled in
the University (including preparatory, undergraduate, and
graduate students) or NTID shall include a surcharge of 100
percent for the academic year 1999-2000 and any succeeding
academic year.
[(c) Reduction of Surcharge.--Beginning with the academic
year 1993-1994, the University or NTID may reduce the surcharge
under subsection (b) to 50 percent if--
[(1) a student described under subsection (b) is from
a developing country;
[(2) such student is unable to pay the tuition
surcharge under subsection (b); and
[(3) such student has made a good faith effort to
secure aid through such student's government or other
sources.
[(d) Definition.--For purposes of subsection (c), the term
``developing country'' means a country that has a 1990 per
capita income not in excess of $4,000 in 1990 United States
dollars.]
(b) Tuition Surcharge.--Except as provided in subsections
(a)(2)(B) and (c), the tuition for postsecondary international
students enrolled in the University (including undergraduate
and graduate students) or NTID shall include, for academic year
2007-2008 and any succeeding academic year, a surcharge of--
(1) 100 percent for a postsecondary international
student from a non-developing country; and
(2) 50 percent for a postsecondary international
student from a developing country.
(c) Reduction of Surcharge.--
(1) In general.--Beginning with the academic year
2007-2008, the University or NTID may reduce the
surcharge--
(A) under subsection (b)(1) to 50 percent
if--
(i) a student described under
subsection (b)(1) demonstrates need;
and
(ii) such student has made a good
faith effort to secure aid through such
student's government or other sources;
and
(B) under subsection (b)(2) to 25 percent
if--
(i) a student described under
subsection (b)(2) demonstrates need;
and
(ii) such student has made a good
faith effort to secure aid through such
student's government or other sources.
(2) Development of sliding scale.--The University and
NTID shall develop a sliding scale model that--
(A) will be used to determine the amount of a
tuition surcharge reduction pursuant to
paragraph (1); and
(B) shall be approved by the Secretary.
(d) Definition.--In this section, the term `developing
country' means a country with a per-capita income of not more
than $4,825, measured in 1999 United States dollars, as
adjusted by the Secretary to reflect inflation since 1999.
* * * * * * *
SEC. 210. RESEARCH PRIORITIES.
(a) Research Priorities.-- * * *
(b) Research Reports.--The University and NTID shall each
prepare and submit an annual research report, to the Secretary,
the Committee on Education and the Workforce of the House of
Representatives, and the [Committee on Labor and Human
Resources of the Senate] Committee on Health, Education, Labor,
and Pensions of the Senate, not later than January 10 of each
year, that shall include--
(1) * * *
* * * * * * *
SEC. 212. AUTHORIZATION OF APPROPRIATIONS.
(a) Galludet University.--There are authorized to be
appropriated such sums as may be necessary for each of the
[fiscal years 1998 through 2003] fiscal years 2006 through 2011
to carry out the provisions of title I and this title, relating
to--
(1) Gallaudet University;
(2) Kendall Demonstration Elementary School; and
(3) the Model Secondary School for the Deaf.
(b) National Technical Institute for the Deaf.--There are
authorized to be appropriated such sums as may be necessary for
each of the [fiscal years 1998 through 2003] fiscal years 2006
through 2011 to carry out the provisions of title I and this
title relating to the National Technical Institute for the
Deaf.
* * * * * * *
UNITED STATES INSTITUTE OF PEACE ACT
* * * * * * *
22 U.S.C. 4604. Powers and duties
(a) * * *
* * * * * * *
(b) Description of Specific Activities.--The Institute,
acting through the Board, may--
(1) * * *
* * * * * * *
(3) establish a Jeannette Rankin Research Program on
Peace to conduct research and make studies,
particularly of an interdisciplinary or of a
multidisciplinary nature, into the causes of war and
other international conflicts and the elements of peace
among the nations and peoples of the world, including
peace theories, methods, techniques, programs, and
systems, and into the experiences of the United States
and other nations in resolving conflicts with justice
and dignity and without violence as they pertain to the
advancement of international peace and conflict
resolution, placing particular emphasis on realistic
approaches to past successes and failures in the quest
for peace and arms control and utilizing to the maximum
extent possible United States Government documents and
classified materials from the Department of State, the
Department of Defense, [the Arms Control and
Disarmament Agency,] and the intelligence community;
* * * * * * *
22 U.S.C. 4605. Board of Directors
(a) Vested Powers.-- * * *
(d) Qualifications.--
(1) Each individual appointed to the Board under
subsection [(b)(5)] (b)(4) of this section shall have
appropriate practical or academic experience in peace
and conflict resolution efforts of the United States.
(2) Officers and employees of the United States
Government may not be appointed to the Board under
subsection [(b)(5)] (b)(4) of this section.
(e) Term of Office: Commencement and Termination, Interim
and Remainder Service, Limitation.--
(1) Members of the Board appointed under subsection
[(b)(5)] (b)(4) of this section shall be appointed to
four year terms, except that
(A) the term of six of the members initially
appointed shall be two years, as designated by
the President at the time of their nomination;
(B) a member may continue to serve until his
or her successor is appointed; and
(C) a member appointed to replace a member
whose term has not expired shall be appointed
to serve the remainder of that term.
(2) The terms of the members of the Board initially
appointed under subsection [(b)(5)] (b)(4) of this
section shall begin on January 20, 1985, and subsequent
terms shall begin upon the expiration of the preceding
term, regardless of when a member is appointed to fill
that term.
(3) The President may not nominate an individual for
appointment to the Board under subsection [(b)(5)]
(b)(4) of this section prior to January 20, 1985, but
shall submit the names of eleven nominees for initial
Board membership under subsection [(b)(5)] (b)(4) of
this section not later than ninety days after that
date. If the Senate rejects such a nomination or if
such a nomination is withdrawn, the President shall
submit the name of a new nominee within fifteen days.
(4) An individual appointed as a member of the Board
under subsection [(b)(5)] (b)(4) of this section may
not be appointed to more than two terms on the Board.
(5) The term of a member of the Board shall not
commence until the member is confirmed by the Senate
and sworn in as a member of the Board.
(f) Removal From Office.--A member of the Board appointed
under subsection [(b)(5)] (b)(4) of this section may be removed
by the President--
(1) * * *
* * * * * * *
(h) Meetings; Chairman; Vice Chairman; Quorum; Notice in
Federal Register; Closure.--Meetings of the Board shall be
conducted as follows:
(1) The President shall stipulate by name the nominee
who shall be the first Chairman of the Board. The first
Chairman shall serve for a term of three years.
Thereafter, the Board shall elect a Chairman every
three years from among the directors appointed by the
President under subsection [(b)(5)] (b)(4) of this
section and may elect a Vice Chairman if so provided by
the Institute's bylaws.
* * * * * * *
(i) Compensation.--A director appointed by the President
under subsection [(b)(5)] (b)(4) of this section shall be
entitled to receive the daily equivalent of the annual rate of
basic pay in effect for grade GS-18 of the General Schedule
under section 5332 of title 5 for each day during which the
director is engaged in the performance of duties as a member of
the Board.
* * * * * * *
22 U.S.C. 4609. Funding
(a) Authorization of Appropriations.--
(1) In general.-- * * *
* * * * * * *
(c) Contractual Authority.-- * * *
(d) Extension.--Any authorization of appropriations made for
the purposes of carrying out this title shall be extended in
the same manner as applicable programs are extended under
section 422 of the General Education Provisions Act.
* * * * * * *
HIGHER EDUCATION AMENDMENTS OF 1998
* * * * * * *
PART D--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED YOUTH OFFENDERS
SEC. 821. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED YOUTH OFFENDERS.
(a) Findings.-- * * *
* * * * * * *
(b) Definition.--For purposes of this part, the term
``youth offender'' means a male or female offender under the
age of [25] 35, who is incarcerated in a State prison,
including a prerelease facility.
* * * * * * *
TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT OF 1978
DEFINITIONS
Sec. 2. (a) For purposes of this Act, the term--
(1) * * *
* * * * * * *
(6) ``national Indian organization'' means an
organization which the Secretary finds is nationally
based, represents a substantial Indian constituency,
and has expertise [in the field of Indian education] in
the fields of tribally controlled colleges and
universities and Indian higher education;
(7) ``Indian student'' means a student who is--
(A) a member of an Indian tribe; or
(B) a biological child of a member of an
Indian tribe, living or deceased;
[(7)] (8) * * *
[(8)] (9) * * *
(b) The following conditions shall apply for the purpose of
determining the Indian student count pursuant to paragraph (7)
of subsection (a):
(1) * * *
* * * * * * *
[(5) Credits earned in a continuing education program
shall be converted to a credit-hour basis in accordance
with the tribally controlled college or university's
system for providing credit for participation in such
program.]
(5) Determination of credits.--Eligible credits
earned in a continuing education program--
(A) shall be determined as 1 credit for every
10 contact hours in the case of an institution
on a quarter system, or 15 contact hours in the
case of an institution on a semester system, of
participation in an organized continuing
education experience under responsible
sponsorship, capable direction, and qualified
instruction, as described in the criteria
established by the International Association
for Continuing Education and Training; and
(B) shall be limited to 10 percent of the
Indian student count of a tribally controlled
college or university.
* * * * * * *
ELIGIBLE GRANT RECIPIENTS
Sec. 103. To be eligible for assistance under this title, a
tribally controlled college or university must be one which--
(1) is governed by a board of directors or board of
trustees a majority of which are Indians;
(2) demonstrates adherence to stated goals, a
philosophy, or a plan of operation which is directed to
meet the needs of Indians; [and]
(3) if in operation for more than one year, has
students a majority of whom are Indians[.] ; and
(4)(A) is accredited by a nationally recognized
accrediting agency or association determined by the
Secretary of Education to be a reliable authority with
regard to the quality of training offered; or
(B) is, according to such an agency or association,
making reasonable progress toward accreditation.
* * * * * * *
TECHNICAL ASSISTANCE CONTRACTS
Sec. 105. The Secretary shall provide, upon request from a
tribally controlled college or university which is receiving
funds under section 108, technical assistance either directly
or through contract. [In the awarding of contracts for
technical assistance, preference shall be given] The Secretary
shall direct that contracts for technical assistance be awarded
to an organization designated by the tribally controlled
college or university to be assisted. No authority to enter
into contracts provided by this section shall be effective
except to the extent authorized in advance by appropriations
Acts.
* * * * * * *
APPROPRIATION AUTHORIZATION
Sec. 110. (a)(1) There is authorized to be appropriated,
for the purpose of carrying out section 105, $3,200,000 for
fiscal year [1999] 2006 and such sums as may be necessary for
each of the [4 succeeding] 5 succeeding fiscal years.
(2) There is authorized to be appropriated for the purpose
of carrying out section 107, [$40,000,000] such sums as may be
necessary for fiscal year [1999] 2006 and such sums as may be
necessary for each of the [4 succeeding] 5 succeeding fiscal
years.
(3) There is authorized to be appropriated for the purpose
of carrying out sections 112(b) and 113, [$10,000,000] such
sums as may be necessary for fiscal year [1999] 2006 and such
sums as may be necessary for each of the [4 succeeding] 5
Succeeding fiscal years.
(4) Funds appropriated pursuant to the authorizations under
this section for the fiscal year [1999] 2006 and for each of
the [succeeding 4] 5 succeeding fiscal years shall be
transferred by the Secretary of the Treasury through the most
expeditious method available, with each of the tribally
controlled colleges or universities being designated as its own
certifying agency.
* * * * * * *
AUTHORIZATION OF APPROPRIATIONS
Sec. 306. (1) There are authorized to be appropriated to
carry out the provisions of this title, $10,000,000 for fiscal
year [1999] 2006 and such sums as may be necessary for each of
the [4 succeeding] 5 succeeding fiscal years.
* * * * * * *
SEC. 403. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grants under
this title, [$2,000,000 for fiscal year 1999] such sums as may
be necessary for fiscal year 2006 and such sums as may be
necessary for each of the [4 succeeding] 5 succeeding fiscal
years.
* * * * * * *
NAVAJO COMMUNITY COLLEGE ACT
* * * * * * *
PURPOSE
Sec. 2. It is the purpose of this Act to assist the [Navajo
Tribe of Indians] Navajo Nation in providing education to the
members of the tribe and other qualified applicants through a
community college, established by that tribe, known as [the
Navajo Community College] Dine College.
GRANTS
Sec. 3. The Secretary of the Interior is authorized to make
grants to the [Navajo Tribe of Indians] Navajo Nation to assist
the tribe in the construction, maintenance, and operation of
[the Navajo Community College] Dine College. Such college shall
be designed and operated by the [Navajo Tribe] Navajo Nation to
insure that the [Navajo Indians] Navajo people and other
qualified applicants have educational opportunities which are
suited to their unique needs and interests.
STUDY OF FACILITIES NEEDS
Sec. 4. (a) The Secretary shall conduct a detailed survey
and study of the academic facilities needs of [the Navajo
Community College] Dine College, and shall report to the
Congress not later than [August 1, 1979] October 31, 2009, the
results of such survey and study. Such report shall include any
recommendations or views submitted by the governing body of
such College and by the governing body of the [Navajo Tribe]
Navajo Nation, and shall include detailed recommendations by
the Secretary as to the number, type, and cost of academic
facilities which are required, ranking each such required
facility by relative need.
(b) Funds to carry out the purposes of this section may be
drawn from general administrative appropriations to the
Secretary made after [the date of enactment of the Tribally
Controlled Community College Assistance Act of 1978] October 1,
2006.
(c) No later than March 1991, an inventory prepared by [the
Navajo Community College] Dine College identifying repairs,
alterations, and renovations to facilities required to meet
health and safety standards shall be submitted to the Secretary
and appropriate committees of Congress. Within 60 days
following the receipt of such inventory, the Secretary shall
review the inventory, evaluating the needs identified, and
transmit the written comments of the Department of the Interior
to the appropriate committees of Congress, together with the
Department's evaluation prepared by the health and safety
division of the Bureau of Indian Affairs.
* * * * * * *
AUTHORIZATION OF APPROPRIATIONS
Sec. 5. (a)(1) For the purpose of making construction
grants under this Act, there are authorized to be appropriated
[$2,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.] such sums
as are necessary for fiscal years 2006 through 2011.
(2) * * *
(3) Sums described in paragraph (2) shall be used to
provide grants for construction activities, including the
construction of buildings, water and sewer facilities, roads,
information technology and telecommunications infrastructure,
classrooms, and external structures (such as walkways).
(b)(1) There are authorized to be appropriated for grants
to [the Navajo Community College] Dine College[, for each
fiscal year, an amount necessary to pay expenses incurred for--
] such sums as are necessary for fiscal years 2006 through 2011
to pay the cost of--
(A) the maintenance and operation of the [college]
College, including--
(i) basic, special, developmental,
vocational, technical, and special handicapped
education costs[,];
(ii) annual capital expenditures, including
equipment needs, minor capital improvements and
remodeling projects, physical plant maintenance
and operation costs, and exceptions and
supplemental need account[, and]; and
(iii) summer and special interest
programs[,];
(B) major capital improvements, including internal
capital outlay funds and capital improvement
projects[,];
(C) mandatory payments, including payments due on
bonds, loans, notes, or lease purchases[, and];
(D) supplemental student services, including student
housing, food service, and the provision of access to
books and services[.]; and
(E) improving and expanding the College, including by
providing, for the Navajo people and others in the
community of the College--
(i) higher education programs;
(ii) vocational and technical education;
(iii) activities relating to the preservation
and protection of the Navajo language,
philosophy, and culture;
(iv) employment and training opportunities;
(v) economic development and community
outreach; and
(vi) a safe learning, working, and living
environment.
* * * * * * *
(c) The Secretary of the Interior is authorized and
directed to establish by rule procedures to insure that all
funds appropriated under this Act are properly identified for
grants to [the Navajo Community College] Dine College and that
such funds are not commingled with appropriations historically
expended by the Bureau of Indian Affairs for programs and
projects normally provided on the Navajo Reservation for Navajo
beneficiaries.
* * * * * * *
EFFECT ON OTHER LAWS
Sec. 6. (a) Except as specifically provided by law,
eligibility for assistance under this Act shall not, by itself,
preclude the eligibility of [the Navajo Community College] Dine
College to receive Federal financial assistance under any
program authorized under the Higher Education Act of 1965 or
any other applicable program for the benefit of institutions of
higher education, community colleges, or postsecondary
educational institutions.
(b) Notwithstanding any other provision of law, funds
provided under this Act to [the Navajo Community College] Dine
College may be treated as non-Federal, private funds of the
College for purposes of any provision of Federal law which
requires that non-Federal or private funds of the [college]
College be used in a project or for a specific purpose.
* * * * * * *
PAYMENTS; INTEREST
Sec. 7. (a) Notwithstanding any other provision of law, the
Secretary of the Interior shall not, in disbursing funds
provided under this Act, use any method of payment which was
not used during fiscal year 1987 in the disbursement of funds
provided under this Act.
(b)(1)(A) Notwithstanding any provision of law other than
subparagraph (B), any interest or investment income that
accrues on any funds provided under this Act after such funds
are paid to [the Navajo Community College] Dine College and
before such funds are expended for the purpose for which such
funds were provided under this Act shall be the property of
[the Navajo Community College] Dine College and shall not be
taken into account by any officer or employee of the Federal
Government in determining whether to provide assistance, or the
amount of assistance, to [the Navajo Community College] Dine
College under any provision of Federal law.
(B) All interest or investment income described in
subparagraph (A) shall be expended by [the Navajo Community
College] Dine College by no later than the close of the fiscal
year succeeding the fiscal year in which such interest or
investment income accrues.
(2) Funds provided under this Act may only be invested by
[the Navajo Community College] Dine College in obligations of
the United States or in obligations or securities that are
guaranteed or insured by the United States.
* * * * * * *
PUBLIC LAW 108-409
TAXPAYER-TEACHER PROTECTION ACT OF 2004
* * * * * * *
SEC. 2. REDUCTION OF SPECIAL ALLOWANCE PAYMENTS FOR LOANS FROM THE
PROCEEDS OF TAX EXEMPT ISSUES.
Section 438(b)(2)(B) of the Higher Education Act of 1965
(20 U.S.C. 1087-1(b)(2)(B)) is amended--
(1) * * *
* * * * * * *