[United States Statutes at Large, Volume 122, 110th Congress, 2nd Session]
[From the U.S. Government Printing Office, www.gpo.gov]

122 STAT. 3078

Public Law 110-315
110th Congress

An Act


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

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

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

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

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

TITLE I--GENERAL PROVISIONS

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

TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality enhancement.

TITLE III--INSTITUTIONAL AID

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

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122 STAT. 3079

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

TITLE IV--STUDENT ASSISTANCE

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

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

PART B--Federal Family Education Loan Program

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

PART C--Federal Work-Study Programs

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

PART D--Federal Direct Student Loan

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

PART E--Federal Perkins Loans

Sec. 461. Extension of authority.

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122 STAT. 3080

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

PART F--Need Analysis

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

PART G--General Provisions Relating to Student Assistance

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

PART H--Program Integrity

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

PART I--Competitive Loan Auction Pilot Program

Sec. 499. Competitive loan auction pilot program evaluation.

TITLE V--DEVELOPING INSTITUTIONS

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

TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

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

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122 STAT. 3081

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

TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

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

TITLE VIII--ADDITIONAL PROGRAMS

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

TITLE IX--AMENDMENTS TO OTHER LAWS

PART A--Education of the Deaf Act of 1986

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

PART B--UNITED STATES INSTITUTE OF PEACE ACT

Sec. 921. United States Institute of Peace Act.

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

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

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

subpart 1--tribal colleges and universities

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

subpart 2--navajo higher education

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

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

Sec. 951. Short title.

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122 STAT. 3082

Sec. 952. Loan repayment for prosecutors and defenders.

PART F--Institutional Loan Repayment Assistance Programs

Sec. 961. Institutional loan forgiveness programs.

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

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

TITLE X--PRIVATE STUDENT LOAN IMPROVEMENT

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

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

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

Subtitle B--Improved Disclosures for Private Education Loans

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

Subtitle C--College Affordability

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

Subtitle D--Financial Literacy; Studies and Reports

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

TITLE XI--STUDIES AND REPORTS

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

SEC. 2. REFERENCES.

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

[[Page 3083]]
122 STAT. 3083

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

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

TITLE I--GENERAL PROVISIONS

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

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

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

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

[[Page 3084]]
122 STAT. 3084

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

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122 STAT. 3085

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

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

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

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122 STAT. 3086

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

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

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

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122 STAT. 3087

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

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122 STAT. 3088

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

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

[[Page 3089]]
122 STAT. 3089

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

[[Page 3090]]
122 STAT. 3090

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

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

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

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

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

[[Page 3091]]
122 STAT. 3091

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

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

[[Page 3092]]
122 STAT. 3092

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

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

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

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

[[Page 3093]]
122 STAT. 3093

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

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

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

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

[[Page 3094]]
122 STAT. 3094

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

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

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

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

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

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

[[Page 3095]]
122 STAT. 3095

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

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

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

[[Page 3096]]
122 STAT. 3096

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

[[Page 3097]]
122 STAT. 3097

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

[[Page 3098]]
122 STAT. 3098

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

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

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

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

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

[[Page 3099]]
122 STAT. 3099

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

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

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

[[Page 3100]]
122 STAT. 3100

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

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

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

[[Page 3101]]
122 STAT. 3101

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

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

[[Page 3102]]
122 STAT. 3102

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

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

[[Page 3103]]
122 STAT. 3103

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

[[Page 3104]]
122 STAT. 3104

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

[[Page 3105]]
122 STAT. 3105

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

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

[[Page 3106]]
122 STAT. 3106

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

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

[[Page 3107]]
122 STAT. 3107

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

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

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

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

[[Page 3108]]
122 STAT. 3108

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

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

[[Page 3109]]
122 STAT. 3109

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

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

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

[[Page 3110]]
122 STAT. 3110

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

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

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

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

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

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

[[Page 3111]]
122 STAT. 3111

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

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

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

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

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

[[Page 3112]]
122 STAT. 3112

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

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

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

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

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

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

[[Page 3113]]
122 STAT. 3113

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

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

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

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

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

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

[[Page 3114]]
122 STAT. 3114

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

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

[[Page 3115]]
122 STAT. 3115

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

[[Page 3116]]
122 STAT. 3116

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

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

[[Page 3117]]
122 STAT. 3117

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

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

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

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

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

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

``SEC. 151. [NOTE: 20 USC 1019.]  DEFINITIONS.

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

[[Page 3118]]
122 STAT. 3118

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

[[Page 3119]]
122 STAT. 3119

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

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

[[Page 3120]]
122 STAT. 3120

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

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

[[Page 3121]]
122 STAT. 3121

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

[[Page 3122]]
122 STAT. 3122

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

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

[[Page 3123]]
122 STAT. 3123

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

[[Page 3124]]
122 STAT. 3124

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

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

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

[[Page 3125]]
122 STAT. 3125

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

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

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

[[Page 3126]]
122 STAT. 3126

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

TITLE II--TEACHER QUALITY ENHANCEMENT

SEC. 201. TEACHER QUALITY ENHANCEMENT.

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

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

[[Page 3127]]
122 STAT. 3127

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

[[Page 3128]]
122 STAT. 3128

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

[[Page 3129]]
122 STAT. 3129

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

[[Page 3130]]
122 STAT. 3130

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

[[Page 3131]]
122 STAT. 3131

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

[[Page 3132]]
122 STAT. 3132

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

[[Page 3133]]
122 STAT. 3133

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

``PART A--TEACHER QUALITY PARTNERSHIP GRANTS

``SEC. 201. [NOTE: 20 USC 1022.]  PURPOSES.

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

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

[[Page 3134]]
122 STAT. 3134

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

[[Page 3135]]
122 STAT. 3135

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

[[Page 3136]]
122 STAT. 3136

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

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

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

[[Page 3137]]
122 STAT. 3137

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

[[Page 3138]]
122 STAT. 3138

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

[[Page 3139]]
122 STAT. 3139

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

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

[[Page 3140]]
122 STAT. 3140

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

[[Page 3141]]
122 STAT. 3141

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

[[Page 3142]]
122 STAT. 3142

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

[[Page 3143]]
122 STAT. 3143

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

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

[[Page 3144]]
122 STAT. 3144

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

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

[[Page 3145]]
122 STAT. 3145

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

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

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

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

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

[[Page 3146]]
122 STAT. 3146

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

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

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

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

[[Page 3147]]
122 STAT. 3147

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

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

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

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

[[Page 3148]]
122 STAT. 3148

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

[[Page 3149]]
122 STAT. 3149

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

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

[[Page 3150]]
122 STAT. 3150

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

[[Page 3151]]
122 STAT. 3151

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

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

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

[[Page 3152]]
122 STAT. 3152

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

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

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

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

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

[[Page 3153]]
122 STAT. 3153

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

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

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

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

[[Page 3154]]
122 STAT. 3154

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

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

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

``PART B--ENHANCING TEACHER EDUCATION

``SEC. 230. [NOTE: 20 USC 1031.]  AUTHORIZATION OF
APPROPRIATIONS.

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

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

``SEC. 231. [NOTE: 20 USC 1032.]  PROGRAM AUTHORIZED.

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

[[Page 3155]]
122 STAT. 3155

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

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

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

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

[[Page 3156]]
122 STAT. 3156

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

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

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

[[Page 3157]]
122 STAT. 3157

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

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

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

[[Page 3158]]
122 STAT. 3158

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

``SEC. 241. [NOTE: 20 USC 1033.]  DEFINITIONS.

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

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

[[Page 3159]]
122 STAT. 3159

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

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

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

``SEC. 251. [NOTE: 20 USC 1034.]  TEACH TO REACH GRANTS.

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

[[Page 3160]]
122 STAT. 3160

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

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

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

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

[[Page 3161]]
122 STAT. 3161

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

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

``Subpart 4--Adjunct Teacher Corps

``SEC. 255. [NOTE: 20 USC 1035.]  ADJUNCT TEACHER CORPS.

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

[[Page 3162]]
122 STAT. 3162

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

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

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

[[Page 3163]]
122 STAT. 3163

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

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

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

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

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

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

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

[[Page 3164]]
122 STAT. 3164

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

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

[[Page 3165]]
122 STAT. 3165

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

[[Page 3166]]
122 STAT. 3166

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

``PART C--GENERAL PROVISIONS

``SEC. 261. [NOTE: 20 USC 1041.]  LIMITATIONS.

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

TITLE III--INSTITUTIONAL AID

SEC. 301. PROGRAM PURPOSE.

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

[[Page 3167]]
122 STAT. 3167

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

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

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

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

[[Page 3168]]
122 STAT. 3168

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

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

[[Page 3169]]
122 STAT. 3169

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

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

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

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

[[Page 3170]]
122 STAT. 3170

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

[[Page 3171]]
122 STAT. 3171

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

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

[[Page 3172]]
122 STAT. 3172

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

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

[[Page 3173]]
122 STAT. 3173

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

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

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

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

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

[[Page 3174]]
122 STAT. 3174

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

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

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

[[Page 3175]]
122 STAT. 3175

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

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

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

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

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

[[Page 3176]]
122 STAT. 3176

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

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

[[Page 3177]]
122 STAT. 3177

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

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

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

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

[[Page 3178]]
122 STAT. 3178

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

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

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

[[Page 3179]]
122 STAT. 3179

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

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

[[Page 3180]]
122 STAT. 3180

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

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

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

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

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

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

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

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

[[Page 3181]]
122 STAT. 3181

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

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

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

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

[[Page 3182]]
122 STAT. 3182

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

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

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

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

``Subpart 2--Programs in STEM Fields

``SEC. 355. [NOTE: 20 USC 1067e.] YES PARTNERSHIPS GRANT
PROGRAM.

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

[[Page 3183]]
122 STAT. 3183

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

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

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

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

[[Page 3184]]
122 STAT. 3184

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

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

[[Page 3185]]
122 STAT. 3185

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

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

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

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

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

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

[[Page 3186]]
122 STAT. 3186

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

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

[[Page 3187]]
122 STAT. 3187

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

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

[[Page 3188]]
122 STAT. 3188

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

TITLE IV--STUDENT ASSISTANCE

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

SEC. 401. FEDERAL PELL GRANTS.

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

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

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

[[Page 3189]]
122 STAT. 3189

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

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

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

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

[[Page 3190]]
122 STAT. 3190

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

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

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

[[Page 3191]]
122 STAT. 3191

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

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

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

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

[[Page 3192]]
122 STAT. 3192

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

[[Page 3193]]
122 STAT. 3193

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

[[Page 3194]]
122 STAT. 3194

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

[[Page 3195]]
122 STAT. 3195

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

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

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

[[Page 3196]]
122 STAT. 3196

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

[[Page 3197]]
122 STAT. 3197

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

[[Page 3198]]
122 STAT. 3198

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

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

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

[[Page 3199]]
122 STAT. 3199

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

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

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

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

[[Page 3200]]
122 STAT. 3200

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

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

[[Page 3201]]
122 STAT. 3201

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

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

[[Page 3202]]
122 STAT. 3202

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

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

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

[[Page 3203]]
122 STAT. 3203

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

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

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

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

[[Page 3204]]
122 STAT. 3204

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

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

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

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

[[Page 3205]]
122 STAT. 3205

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

[[Page 3206]]
122 STAT. 3206

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

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

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

[[Page 3207]]
122 STAT. 3207

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

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

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

[[Page 3208]]
122 STAT. 3208

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

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

[[Page 3209]]
122 STAT. 3209

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

[[Page 3210]]
122 STAT. 3210

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

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

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

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

[[Page 3211]]
122 STAT. 3211

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

[[Page 3212]]
122 STAT. 3212

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

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

[[Page 3213]]
122 STAT. 3213

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

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

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

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

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

[[Page 3214]]
122 STAT. 3214

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

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

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

[[Page 3215]]
122 STAT. 3215

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

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

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

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

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

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

[[Page 3216]]
122 STAT. 3216

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

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

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

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

[[Page 3217]]
122 STAT. 3217

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

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

[[Page 3218]]
122 STAT. 3218

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

[[Page 3219]]
122 STAT. 3219

``(A) not less than one public and one private
degree-granting institution of higher education that are
located in the State, if applicable;
``(B) new or existing early information and
intervention, mentoring, or outreach programs located in
the State; and
``(C) not less than one--
``(i) philanthropic organization located in,
or that provides funding in, the State; or
``(ii) private corporation located in, or that
does business in, the State.
``(4) Roles of partners.--
``(A) State agency.--A State agency that is in a
partnership receiving an allotment under this section--
``(i) shall--
``(I) serve as the primary
administrative unit for the partnership;
``(II) provide or coordinate non-
Federal share funds, and coordinate
activities among partners;
``(III) encourage each institution
of higher education in the State to
participate in the partnership;
``(IV) [NOTE: Notification.] make
determinations and early notifications
of assistance as described under
subsection (d)(2); and

``(V) [NOTE: Deadline. Reports.] annual
ly report to the Secretary on the
partnership's progress in meeting the
purpose of this section; and
``(ii) may provide early information and
intervention, mentoring, or outreach programs.
``(B) Degree-granting institutions of higher
education.--A degree-granting institution of higher
education that is in a partnership receiving an
allotment under this section--
``(i) shall--
``(I) recruit and admit
participating qualified students and
provide such additional institutional
grant aid to participating students as
agreed to with the State agency;
``(II) provide support services to
students who receive grants for access
and persistence under this section and
are enrolled at such institution; and
``(III) assist the State in the
identification of eligible students and
the dissemination of early notifications
of assistance as agreed to with the
State agency; and
``(ii) may provide funding for early
information and intervention, mentoring, or
outreach programs or provide such services
directly.
``(C) Programs.--An early information and
intervention, mentoring, or outreach program that is in
a partnership receiving an allotment under this section
shall provide direct services, support, and information
to participating students.
``(D) Philanthropic organization or private
corporation.--A philanthropic organization or private
corporation that is in a partnership receiving an
allotment

[[Page 3220]]
122 STAT. 3220

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

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

[[Page 3221]]
122 STAT. 3221

a grant for access and persistence and
other student aid programs;
``(IV) a nonbinding estimate of the
total amount of financial aid that a
low-income student with a similar income
level may expect to receive, including
an estimate of the amount of a grant for
access and persistence and an estimate
of the amount of grants, loans, and all
other available types of aid from the
major Federal and State financial aid
programs;
``(V) an explanation that in order
to be eligible for a grant for access
and persistence, at a minimum, a student
shall--
``(aa) meet the requirement
under paragraph (3);
``(bb) graduate from
secondary school; and
``(cc) enroll at an
institution of higher
education--
``(AA) that is a partner
in the partnership; or
``(BB) with respect to
which attendance is
permitted under subsection
(d)(1)(C)(ii);
``(VI) information on any additional
requirements (such as a student pledge
detailing student responsibilities) that
the State may impose for receipt of a
grant for access and persistence under
this section; and
``(VII) instructions on how to apply
for a grant for access and persistence
and an explanation that a student is
required to file a Free Application for
Federal Student Aid authorized under
section 483(a) to be eligible for such
grant and assistance from other Federal
and State financial aid programs; and
``(ii) may include a disclaimer that grant
awards for access and persistence are contingent
on--
``(I) a determination of the
student's financial eligibility at the
time of the student's enrollment at an
institution of higher education that is
a partner in the partnership or
qualifies under subsection
(d)(1)(C)(ii);
``(II) annual Federal and State
spending for higher education; and
``(III) other aid received by the
student at the time of the student's
enrollment at such institution of higher
education.
``(3) Eligibility.--In determining which students are
eligible to receive grants for access and persistence, the State
shall ensure that each such student complies with the following
subparagraph (A) or (B):
``(A) Meets not less than two of the following
criteria, with priority given to students meeting all of
the following criteria:
``(i) Has an expected family contribution
equal to zero, as determined under part F, or a
comparable

[[Page 3222]]
122 STAT. 3222

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

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

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

[[Page 3223]]
122 STAT. 3223

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

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

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

[[Page 3224]]
122 STAT. 3224

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

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

[[Page 3225]]
122 STAT. 3225

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

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

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

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

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

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

[[Page 3226]]
122 STAT. 3226

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

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

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

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

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

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

``(d) Additional Administrative Provisions.--

[[Page 3227]]
122 STAT. 3227

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

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

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

PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

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

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

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

[[Page 3228]]
122 STAT. 3228

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

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

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

[[Page 3229]]
122 STAT. 3229

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

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

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

[[Page 3230]]
122 STAT. 3230

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

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

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

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

[[Page 3231]]
122 STAT. 3231

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

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

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

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

[[Page 3232]]
122 STAT. 3232

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

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

[[Page 3233]]
122 STAT. 3233

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

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

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

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

[[Page 3234]]
122 STAT. 3234

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

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

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

[[Page 3235]]
122 STAT. 3235

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

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

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

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

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

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

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

[[Page 3236]]
122 STAT. 3236

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

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

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

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

[[Page 3237]]
122 STAT. 3237

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

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

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

[[Page 3238]]
122 STAT. 3238

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

[[Page 3239]]
122 STAT. 3239

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

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

[[Page 3240]]
122 STAT. 3240

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

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

[[Page 3241]]
122 STAT. 3241

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

[[Page 3242]]
122 STAT. 3242

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

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

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

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

[[Page 3243]]
122 STAT. 3243

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

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

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

[[Page 3244]]
122 STAT. 3244

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

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

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

[[Page 3245]]
122 STAT. 3245

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

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

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

[[Page 3246]]
122 STAT. 3246

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

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

[[Page 3247]]
122 STAT. 3247

SEC. 433. LEGAL POWERS AND RESPONSIBILITIES.

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

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

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

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

[[Page 3248]]
122 STAT. 3248

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

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

[[Page 3249]]
122 STAT. 3249

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

[[Page 3250]]
122 STAT. 3250

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

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

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

[[Page 3251]]
122 STAT. 3251

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

[[Page 3252]]
122 STAT. 3252

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

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

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

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

[[Page 3253]]
122 STAT. 3253

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

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

[[Page 3254]]
122 STAT. 3254

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

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

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

[[Page 3255]]
122 STAT. 3255

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

[[Page 3256]]
122 STAT. 3256

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

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

[[Page 3257]]
122 STAT. 3257

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

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

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

[[Page 3258]]
122 STAT. 3258

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

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

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

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

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

PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

[[Page 3259]]
122 STAT. 3259

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

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

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

[[Page 3260]]
122 STAT. 3260

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

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

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

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

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

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

[[Page 3261]]
122 STAT. 3261

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

PART D--FEDERAL DIRECT STUDENT LOAN

SEC. 451. TERMS AND CONDITIONS OF LOANS.

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

[[Page 3262]]
122 STAT. 3262

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

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

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

[[Page 3263]]
122 STAT. 3263

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

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

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

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

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

[[Page 3264]]
122 STAT. 3264

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

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

[[Page 3265]]
122 STAT. 3265

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

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

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

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

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

PART E--FEDERAL PERKINS LOANS

SEC. 461. EXTENSION OF AUTHORITY.

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

[[Page 3266]]
122 STAT. 3266

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

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

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

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

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

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

[[Page 3267]]
122 STAT. 3267

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

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

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

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

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

[[Page 3268]]
122 STAT. 3268

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

[[Page 3269]]
122 STAT. 3269

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

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

PART F--NEED ANALYSIS

SEC. 471. COST OF ATTENDANCE.

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

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

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

[[Page 3270]]
122 STAT. 3270

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

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

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

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

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

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

[[Page 3271]]
122 STAT. 3271

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

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

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

PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

SEC. 481. DEFINITIONS.

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

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

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

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

[[Page 3272]]
122 STAT. 3272

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

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

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

[[Page 3273]]
122 STAT. 3273

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

[[Page 3274]]
122 STAT. 3274

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

[[Page 3275]]
122 STAT. 3275

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

[[Page 3276]]
122 STAT. 3276

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

[[Page 3277]]
122 STAT. 3277

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

[[Page 3278]]
122 STAT. 3278

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

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

[[Page 3279]]
122 STAT. 3279

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

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

[[Page 3280]]
122 STAT. 3280

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

[[Page 3281]]
122 STAT. 3281

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

[[Page 3282]]
122 STAT. 3282

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

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

[[Page 3283]]
122 STAT. 3283

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

[[Page 3284]]
122 STAT. 3284

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

[[Page 3285]]
122 STAT. 3285

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

[[Page 3286]]
122 STAT. 3286

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

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

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

[[Page 3287]]
122 STAT. 3287

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

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

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

[[Page 3288]]
122 STAT. 3288

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

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

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

[[Page 3289]]
122 STAT. 3289

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

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

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

[[Page 3290]]
122 STAT. 3290

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

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

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

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

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

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

[[Page 3291]]
122 STAT. 3291

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

[[Page 3292]]
122 STAT. 3292

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

[[Page 3293]]
122 STAT. 3293

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

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

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

[[Page 3294]]
122 STAT. 3294

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

[[Page 3295]]
122 STAT. 3295

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

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

[[Page 3296]]
122 STAT. 3296

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

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

[[Page 3297]]
122 STAT. 3297

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

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

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

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

[[Page 3298]]
122 STAT. 3298

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

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

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

[[Page 3299]]
122 STAT. 3299

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

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

[[Page 3300]]
122 STAT. 3300

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

[[Page 3301]]
122 STAT. 3301

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

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

[[Page 3302]]
122 STAT. 3302

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

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

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

[[Page 3303]]
122 STAT. 3303

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

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

[[Page 3304]]
122 STAT. 3304

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

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

[[Page 3305]]
122 STAT. 3305

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

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

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

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

[[Page 3306]]
122 STAT. 3306

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

[[Page 3307]]
122 STAT. 3307

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

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

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

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

[[Page 3308]]
122 STAT. 3308

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

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

[[Page 3309]]
122 STAT. 3309

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

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

[[Page 3310]]
122 STAT. 3310

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

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

[[Page 3311]]
122 STAT. 3311

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

[[Page 3312]]
122 STAT. 3312

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

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

[[Page 3313]]
122 STAT. 3313

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

[[Page 3314]]
122 STAT. 3314

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

[[Page 3315]]
122 STAT. 3315

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

[[Page 3316]]
122 STAT. 3316

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

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

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

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

[[Page 3317]]
122 STAT. 3317

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

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

[[Page 3318]]
122 STAT. 3318

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

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

[[Page 3319]]
122 STAT. 3319

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

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

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

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

[[Page 3320]]
122 STAT. 3320

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

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

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

[[Page 3321]]
122 STAT. 3321

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

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

[[Page 3322]]
122 STAT. 3322

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

[[Page 3323]]
122 STAT. 3323

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

[[Page 3324]]
122 STAT. 3324

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

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

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

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

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

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

PART H--PROGRAM INTEGRITY

SEC. 495. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

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

[[Page 3325]]
122 STAT. 3325

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

[[Page 3326]]
122 STAT. 3326

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

[[Page 3327]]
122 STAT. 3327

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

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

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

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

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

[[Page 3328]]
122 STAT. 3328

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

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

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

PART I--COMPETITIVE LOAN AUCTION PILOT PROGRAM

SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM EVALUATION.

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

[[Page 3329]]
122 STAT. 3329

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

[[Page 3330]]
122 STAT. 3330

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

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

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

[[Page 3331]]
122 STAT. 3331

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

TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. AUTHORIZED ACTIVITIES.

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

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

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

``SEC. 511. [NOTE: 20 USC 1102.] PURPOSES.

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

[[Page 3332]]
122 STAT. 3332

``SEC. 512. [NOTE: 20 USC 1102a.] PROGRAM AUTHORITY AND
ELIGIBILITY.

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

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

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

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

[[Page 3333]]
122 STAT. 3333

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

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

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

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

TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

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

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

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

[[Page 3334]]
122 STAT. 3334

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

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

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

[[Page 3335]]
122 STAT. 3335

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

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

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

[[Page 3336]]
122 STAT. 3336

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

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

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

``(c) Funding Support.--

[[Page 3337]]
122 STAT. 3337

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

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

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

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

[[Page 3338]]
122 STAT. 3338

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

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

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

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

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

[[Page 3339]]
122 STAT. 3339

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

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

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

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

[[Page 3340]]
122 STAT. 3340

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

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

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

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

[[Page 3341]]
122 STAT. 3341

SEC. 615. ADVANCED DEGREE IN INTERNATIONAL RELATIONS.

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

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

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

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

[[Page 3342]]
122 STAT. 3342

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

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

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

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

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

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

[[Page 3343]]
122 STAT. 3343

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

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

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

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

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

``The Secretary may use not more than one percent of the funds made
available under this title to carry out program evaluation, national
outreach, and information dissemination activities relating to the
programs authorized under this title.
``SEC. 636. [NOTE: 20 USC 1132-5.] REPORT.

``The Secretary shall, in consultation and collaboration with the
Secretary of State, the Secretary of Defense, and the heads of other
relevant Federal agencies, submit a report once every two years that
identifies areas of national need in foreign language, area, and
international studies as such studies relate to government, education,
business, and nonprofit needs, and a plan to address those needs.
The [NOTE: Public information.] report shall be provided to the
authorizing committees and made available to the public.
``SEC. 637. SCIENCE [NOTE: 20 USC 1132-6.] AND TECHNOLOGY
ADVANCED FOREIGN LANGUAGE EDUCATION GRANT
PROGRAM.

``(a) Purpose.--It is the purpose of this section to support
programs in institutions of higher education that--
``(1) encourage students to develop--
``(A) an understanding of science and technology;
and
``(B) foreign language proficiency;

[[Page 3344]]
122 STAT. 3344

``(2) foster future international scientific collaboration;
``(3) provide for professional development opportunities for
elementary school and secondary school teachers of critical
foreign languages to increase the number of highly qualified
teachers in critical foreign languages; and
``(4) increase the number of United States students who
achieve the highest level of proficiency in foreign languages
critical to the security and competitiveness of the Nation.

``(b) Development.--The Secretary shall develop a program for the
awarding of grants to institutions of higher education that develop
innovative programs for the teaching of foreign languages, which may
include the preparation of teachers to teach foreign languages.
``(c) Regulations and Requirements.--The Secretary shall promulgate
regulations for the awarding of grants under subsection (b). Such
regulations may require institutions of higher education to use grant
funds for, among other things--
``(1) the development of an on-campus cultural awareness
program by which students attend classes taught in a foreign
language and study the science and technology developments and
practices in a non-English speaking country;
``(2) immersion programs where students take science or
technology related course work in a non-English speaking
country;
``(3) other programs, such as summer workshops, that
emphasize the intense study of a foreign language and science
technology;
``(4) if applicable, recruiting highly qualified teachers in
critical foreign languages, and providing professional
development activities for such teachers at the elementary
school and secondary school levels; and
``(5) providing innovative opportunities for students that
will allow for critical language learning, such as immersion
environments, intensive study opportunities, internships, and
distance learning.

``(d) Grant Distribution.--In distributing grants to institutions of
higher education under this section, the Secretary shall give priority
to--
``(1) institutions that have programs focusing on curricula
that combine the study of foreign languages and the study of
science and technology and produce graduates who have both
skills; and
``(2) institutions teaching critical foreign languages.

``(e) Report on Best Practices.--Not later than one year after the
date of enactment of this section, the Secretary shall--
``(1) conduct [NOTE: Study.] a study to identify the best
practices to strengthen the role of institutions of higher
education that receive funding under title III or title V in
increasing the critical foreign language education efforts in
the United States; and
``(2) submit a report on the results of such study to the
authorizing committees.

``(f) Appropriations Authorized.--There are authorized to be
appropriated to carry out this section, such sums as may be necessary
for fiscal year 2009 and for each subsequent fiscal year.

[[Page 3345]]
122 STAT. 3345

``SEC. 638. [NOTE: 20 USC 1132-7.] REPORTING BY INSTITUTIONS.

``(a) Applicability.--The data requirement in subsection (b) shall
apply to an institution of higher education that receives funds for a
center or program under this title if--
``(1) the amount of the contribution (including cash and the
fair market value of any property) received from any foreign
government or from a foreign private sector corporation or
foundation during any fiscal year exceeds $250,000 in the
aggregate; and
``(2) the aggregate contribution, or a significant part of
the aggregate contribution, is to be used by a center or program
receiving funds under this title.

``(b) Data Required.--The Secretary shall require an institution of
higher education referred to in subsection (a) to report information
listed in subsection (a) to the Secretary consistent with the
requirements of section 117.''.

TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

SEC. 701. PURPOSE.

Section 700(1)(B)(i) (20 U.S.C. 1133(1)(B)(i)) is amended by
inserting ``, including those areas critical to United States national
and homeland security needs, such as science, technology, engineering,
and mathematics'' before the semicolon.
SEC. 702. JACOB K. JAVITS FELLOWSHIP PROGRAM.

(a) Interruptions of Study.--Section 701(c) (20 U.S.C. 1134(c)) is
amended by adding at the end the following new sentence: ``In the case
of other exceptional circumstances, such as active duty military service
or personal or family member illness, the institution of higher
education may also permit the fellowship recipient to interrupt periods
of study for the duration of the tour of duty (in the case of military
service) or for not more than 12 months (in any other case), but without
payment of the stipend.''.
(b) Allocation of Fellowships.--Section 702(a)(1) (20 U.S.C.
1134a(a)(1)) is amended to read as follows:
``(1) Appointment.--
``(A) In general.--The Secretary shall appoint a
Jacob K. Javits Fellows Program Fellowship Board
(referred to in this subpart as the `Board') consisting
of 9 individuals representative of both public and
private institutions of higher education who are
especially qualified to serve on the Board.
``(B) Qualifications.--In making appointments under
subparagraph (A), the Secretary shall--
``(i) give due consideration to the
appointment of individuals who are highly
respected in the academic community;
``(ii) appoint members who represent the
various geographic regions of the United States;
``(iii) ensure that individuals appointed to
the Board are broadly representative of a range of
disciplines in graduate education in arts,
humanities, and social sciences; and

[[Page 3346]]
122 STAT. 3346

``(iv) ensure that such individuals include
representatives from institutions that are
eligible for one or more of the grants under title
III or V.''.

(c) Stipends.--
(1) Section 703 (20 U.S.C. 1134b) is amended--
(A) in subsection (a)--
(i) by striking ``1999-2000'' and inserting
``2009-2010''; and
(ii) by striking ``Foundation graduate
fellowships'' and inserting ``Foundation Graduate
Research Fellowship Program for such academic
year''; and
(B) in subsection (b), by striking paragraph (1)(A)
and inserting the following:
``(1) In general.--(A) [NOTE: Payments.] The Secretary
shall (in addition to stipends paid to individuals under this
subpart) pay to the institution of higher education, for each
individual awarded a fellowship under this subpart at such
institution, an institutional allowance. Except as provided in
subparagraph (B), such allowance shall be, for academic year
2009-2010 and succeeding academic years, the same amount as the
institutional payment made for academic year 2008-2009, adjusted
for academic year 2009-2010 and annually thereafter in
accordance with inflation as determined by the Department of
Labor's Consumer Price Index for the previous calendar year.''.

(d) Authorization of Appropriations.--Section 705 (20 U.S.C. 1134d)
is amended by striking ``fiscal year 1999'' and all that follows through
the period at the end and inserting ``fiscal year 2009 and each of the
five succeeding fiscal years to carry out this subpart.''.
SEC. 703. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

(a) Institutional Eligibility.--Section 712 (20 U.S.C. 1135a) is
amended by striking subsection (b) and inserting the following:
``(b) Designation of Areas of National Need.--After consultation
with appropriate Federal and nonprofit agencies and organizations,
including the National Science Foundation, the Department of Defense,
the Department of Homeland Security, the National Academy of Sciences,
and the Bureau of Labor Statistics, the Secretary shall designate areas
of national need. In making such designations, the Secretary shall take
into consideration--
``(1) the extent to which the interest in the area is
compelling;
``(2) the extent to which other Federal programs support
postbaccalaureate study in the area concerned;
``(3) an assessment of how the program may achieve the most
significant impact with available resources; and
``(4) an assessment of current (as of the time of the
designation) and future professional workforce needs of the
United States.''.

(b) Awards to Graduate Students.--Section 714(b) (20 U.S.C.
1135c(b)) is amended--
(1) by striking ``1999-2000'' and inserting ``2009-2010'';
and
(2) by striking ``Foundation graduate fellowships'' and
inserting ``Foundation Graduate Research Fellowship Program for
such academic year''.

(c) Additional Assistance.--Section 715(a)(1) (20 U.S.C.
1135d(a)(1)) is amended--

[[Page 3347]]
122 STAT. 3347

(1) by striking ``1999-2000'' and inserting ``2009-2010'';
and
(2) by striking ``1998-1999'' and inserting ``2008-2009''.

(d) Authorization of Appropriations.--Section 716 (20 U.S.C. 1135e)
is amended by striking ``fiscal year 1999'' and all that follows through
the period at the end and inserting ``fiscal year 2009 and each of the
five succeeding fiscal years to carry out this subpart.''.
(e) Technical Amendments.--Subpart 2 of part A of title VII (as
amended by this section) (20 U.S.C. 113 et seq.) is further amended--
(1) in section 711(a)(1) (20 U.S.C. 1135(a)(1)), by
inserting ``, including a master's or doctoral degree,'' after
``leading to a graduate degree'';
(2) in section 712(a) (20 U.S.C. 1135a(a)), by inserting ``,
including a master's or doctoral degree,'' after ``leading to a
graduate degree'';
(3) in section 713(b)(5)(C) (20 U.S.C. 1135b(b)(5)(C)), by
inserting ``at the institution'' before the semicolon; and
(4) in section 714(c) (20 U.S.C. 1135c(c))--
(A) by striking ``716(a)'' and inserting ``715(a)'';
and
(B) by striking ``714(b)(2)'' and inserting
``713(b)(2)''.
SEC. 704. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

(a) Program Authority.--
(1) Section 721(a) (20 U.S.C. 1136(a)) is amended--
(A) by inserting ``secondary school and'' after
``disadvantaged''; and
(B) by inserting ``and admission to law practice''
before the period at the end.

(b) Eligibility.--Section 721(b) (20 U.S.C. 1136(b)) is amended in
the matter preceding paragraph (1), by inserting ``secondary school
student or'' before ``college student''.
(c)  Contract and Grant Purposes.--Section 721(c) (20 U.S.C.
1136(c)) is amended--
(1) in paragraph (1), by inserting ``secondary school and''
before ``college students'';
(2) by striking paragraph (2) and inserting the following:
``(2) to prepare such students for successful completion of
a baccalaureate degree and for study at accredited law schools,
and to assist them with the development of analytical skills,
writing skills, and study methods to enhance the students'
success in, and promote the students' admission to and
completion of, law school;'';
(3) in paragraph (4), by striking ``and'' after the
semicolon; and
(4) by striking paragraph (5) and inserting the following:
``(5) to motivate and prepare such students--
``(A) with respect to law school studies and
practice in low-income communities; and
``(B) to provide legal services to low-income
individuals and families; and
``(6) to award Thurgood Marshall Fellowships to eligible law
school students--
``(A) who participated in summer institutes under
subsection (d)(6) and who are enrolled in an accredited
law school; or

[[Page 3348]]
122 STAT. 3348

``(B) who have successfully completed a comparable
summer institute program that is certified by the
Council on Legal Education Opportunity.''.

(d) Services Provided.--Section 721(d) (20 U.S.C. 1136(d)) is
amended--
(1) in the matter preceding paragraph (1), by inserting
``pre-college programs, undergraduate'' before ``pre-law'';
(2) in paragraph (1)--
(A) in subparagraph (B), by inserting ``law school''
before ``graduation''; and
(B) by striking subparagraph (D) and inserting the
following:
``(D) pre-college and undergraduate preparatory
courses in analytical and writing skills, study methods,
and course selection;'';
(3) by redesignating paragraphs (2) through (6) as
paragraphs (3) through (7), respectively;
(4) by inserting after paragraph (1) the following:
``(2) summer academic programs for secondary school students
who have expressed interest in a career in the law;''; and
(5) in paragraph (7) (as redesignated by paragraph (3)), by
inserting ``and Associates'' after ``Thurgood Marshall
Fellows''.

(e) Duration.--Section 721(e)(1) (20 U.S.C. 1136(e)(1)) is amended
by inserting ``, including before and during undergraduate study''
before the semicolon.
(f) Subcontracts and Subgrants.--Section 721(f) (20 U.S.C. 1136(f))
is amended--
(1) by inserting ``national and State bar associations,''
after ``agencies and organizations,''; and
(2) by striking ``and organizations.'' and inserting
``organizations, and associations.''.

(g) Stipends.--Section 721(g) (20 U.S.C. 1136(g)) is amended to read
as follows:
``(g) Fellowships and Stipends.-- [NOTE: Deadline.] The Secretary
shall annually establish the maximum fellowship to be awarded, and the
maximum stipend to be paid (including allowances for participant travel
and for the travel of the dependents of the participant), to Thurgood
Marshall Fellows or Associates for the period of participation in summer
institutes, midyear seminars, and bar preparation seminars. A Thurgood
Marshall Fellow or Associate may be eligible for such a fellowship or
stipend only if the Fellow or Associate maintains satisfactory academic
progress toward the Juris Doctor or Bachelor of Laws degree, as
determined by the respective institutions (except with respect to a law
school graduate enrolled in a bar preparation course).''.

(h) Authorization of Appropriations.--Section 721(h) (20 U.S.C.
1136(h)) is amended by striking ``fiscal year 1999'' and all that
follows through the period at the end and inserting ``fiscal year 2009
and each of the five succeeding fiscal years.''.
(i) Repeal of Continuation Awards.--Subsection (e) of section 731
(20 U.S.C. 1137(e)) is repealed.
SEC. 705. SENSE OF CONGRESS.

It is the sense of Congress that--

[[Page 3349]]
122 STAT. 3349

(1) addressing the under-representation of women and
minorities in the higher education professoriate will require
consistent inter-institutional cooperation, data gathering,
analysis, and self-evaluation; and
(2) institutions eligible for funds under part A of title
VII of the Higher Education Act of 1965 (20 U.S.C. 1134 et seq.)
should be encouraged to consider the feasibility and potential
design of an inter-institution monitoring organization
addressing under-representation by race, ethnicity, and gender
in postsecondary faculty and administrators.
SEC. 706. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK COLLEGES
AND UNIVERSITIES AND PREDOMINANTLY BLACK
INSTITUTIONS.

(a) Technical Amendments.--Part A of title VII (as amended by this
title) (20 U.S.C. 1134 et seq.) is further amended--
(1) by redesignating subpart 4 as subpart 5;
(2) in the heading of section 731, [NOTE: 20 USC 1137.] by
striking ``subparts 1, 2, and 3'' and inserting ``subparts 1
through 4''; and
(3) in section 731--
(A) in subsections (a) and (b), by striking
``subparts 1, 2, and 3'' each place the term appears and
inserting ``subparts 1 through 4''; and
(B) in subsection (d), by striking ``subpart 1, 2,
or 3'' and inserting ``subpart 1, 2, 3, or 4''.

(b) Master's Degree Programs.--Part A of title VII (as amended by
this title) (20 U.S.C. 1134 et seq.) is further amended by inserting
after subpart 3 the following:

``Subpart 4--Masters Degree Programs at Historically Black Colleges and
Universities and Predominantly Black Institutions

``SEC. 723. [NOTE: 20 USC 1136a.] MASTERS DEGREE PROGRAMS AT
HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES.

``(a) Grant Program Authorized.--
``(1) In general.--Subject to the availability of funds
appropriated to carry out this section, the Secretary shall
award program grants to each of the institutions listed in
subsection (b)(1) that is determined by the Secretary to be
making a substantial contribution to graduate education
opportunities at the masters level in mathematics, engineering,
the physical or natural sciences, computer science, information
technology, nursing, allied health, or other scientific
disciplines for Black Americans.
``(2) Assurance of non-federal matching funds.--No grant in
excess of $1,000,000 may be made under this section unless the
institution provides assurances that 50 percent of the cost of
the purposes for which the grant is made will be paid from non-
Federal sources, except that no institution shall be required to
match any portion of the first $1,000,000 of the institution's
award from the Secretary. After funds are made available to each
eligible institution under the funding rules described in
subsection (f), the Secretary shall distribute, on a pro rata
basis, any amounts which were not so made available (by reason
of the failure of an institution to comply

[[Page 3350]]
122 STAT. 3350

with the matching requirements of this paragraph) among the
institutions that have complied with such matching requirement.
``(3) Minimum award.--Subject to subsections (f) and (g),
the amount awarded to each eligible institution listed in
subsection (b)(1) for a fiscal year shall be not less than
$500,000.
``(4) Duration of grants.--A grant awarded under this
section shall be for a period of not more than six years, but
may be periodically renewed for a period to be determined by the
Secretary.

``(b) Institutional Eligibility.--
``(1) In general.--Institutions eligible for grants under
subsection (a) are the following:
``(A) Albany State University.
``(B) Alcorn State University.
``(C) Claflin University.
``(D) Coppin State University.
``(E) Elizabeth City State University.
``(F) Fayetteville State University.
``(G) Fisk University.
``(H) Fort Valley State University.
``(I) Grambling State University.
``(J) Kentucky State University.
``(K) Mississippi Valley State University.
``(L) Savannah State University.
``(M) South Carolina State University.
``(N) University of Arkansas, Pine Bluff.
``(O) Virginia State University.
``(P) West Virginia Sate University.
``(Q) Wilberforce University.
``(R) Winston-Salem State University.
``(2) Qualified masters degree program.--
``(A) In general.--For the purposes of this section,
the term `qualified masters degree program' means a
masters degree program that provides a program of
instruction in mathematics, engineering, the physical or
natural sciences, computer science, information
technology, nursing, allied health, or other scientific
disciplines in which African Americans are
underrepresented and has students enrolled in such
program of instruction at the time of application for a
grant under this section.
``(B) Enrollment exception.--Notwithstanding the
enrollment requirement contained in subparagraph (A), an
institution may use an amount equal to not more than 10
percent of the institution's grant under this section
for the development of a new qualified masters degree
program.
``(3) Institutional choice.--The president or chancellor of
the institution may decide which graduate school or qualified
masters degree program will receive funds under the grant in any
one fiscal year, if the allocation of funds among the schools or
programs is delineated in the application for funds submitted to
the Secretary under this section.
``(4) One grant per institution.--The Secretary shall not
award more than one grant under this section in any fiscal year
to any institution of higher education.

[[Page 3351]]
122 STAT. 3351

``(c) Application.--An eligible institution listed in subsection
(b)(1) desiring a grant under this section shall submit an application
at such time, in such manner, and containing such information as the
Secretary may require. The application shall--
``(1) demonstrate how the grant funds under this section
will be used to improve graduate educational opportunities for
Black and low-income students, and lead to greater financial
independence; and
``(2) provide, in the case of applications for grants in
excess of $1,000,000, the assurances required under subsection
(a)(2) and specify the manner in which the eligible institution
is going to pay the non-Federal share of the cost of the
application.

``(d) Uses of Funds.--A grant under this section may be used for--
``(1) purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
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) scholarships, fellowships, and other financial
assistance for needy graduate students to permit the enrollment
of the students in, and completion of, a masters degree in
mathematics, engineering, the physical or natural sciences,
computer science, information technology, nursing, allied
health, or other scientific disciplines in which African
Americans are underrepresented;
``(5) establishing or improving a development office to
strengthen and increase contributions from alumni and the
private sector;
``(6) assisting in the establishment or maintenance of an
institutional endowment to facilitate financial independence
pursuant to section 331;
``(7) funds and administrative management, and the
acquisition of equipment, including software, for use in
strengthening funds management and management information
systems;
``(8) acquisition of real property that is adjacent to the
campus in connection with the construction, renovation, or
improvement of, or an addition to, campus facilities;
``(9) education or financial information designed to improve
the financial literacy and economic literacy of students or the
students' families, especially with regard to student
indebtedness and student assistance programs under title IV;
``(10) tutoring, counseling, and student service programs
designed to improve academic success;
``(11) faculty professional development, faculty exchanges,
and faculty participation in professional conferences and
meetings; and
``(12) other activities proposed in the application
submitted under subsection (c) that--

[[Page 3352]]
122 STAT. 3352

``(A) contribute to carrying out the purposes of
this section; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.

``(e) Interaction With Other Grant Programs.--No institution that is
eligible for and receives an award under section 326, 512, or 724 for a
fiscal year shall be eligible to apply for a grant, or receive grant
funds, under this section for the same fiscal year.
``(f) Funding Rule.--Subject to subsection (g), of the amount
appropriated to carry out this section for any fiscal year--
``(1) the first $9,000,000 (or any lesser amount
appropriated) shall be available only for the purposes of making
minimum grants under subsection (a)(3) to eligible institutions
listed in subparagraphs (A) through (R) of subsection (b)(1),
except that if the amount appropriated is not sufficient to pay
the minimum grant awards to all such eligible institutions, the
amount of the minimum award to each such eligible institution
shall be ratably reduced;
``(2) after the application of paragraph (1), an amount
shall be available for the purpose of making minimum grants
under subsection (a)(3) to eligible institutions listed in
subsection (b)(1) that do not receive a grant under paragraph
(1), if any, except that if the amount appropriated is not
sufficient to pay the minimum grant awards to all such eligible
institutions, the amount of the minimum award to each such
eligible institution shall be ratably reduced; and
``(3) any amount in excess of $9,000,000 shall be made
available to each of the eligible institutions identified in
subparagraphs (A) through (R) of subsection (b)(1), 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
qualified masters degree program at the eligible
institution in the previous academic year.
``(C) The average cost of attendance per student,
for all full-time students enrolled in the qualified
masters degree program at such institution.
``(D) The number of students in the previous year
who received a degree in the qualified masters degree
program at such institution.
``(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 masters degrees in the
disciplines related to the programs for the previous
year.

``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and (3) of
subsection (f), no eligible institution identified in subsection (b)(1)
that receives a grant under this section for fiscal year 2009 and that
is eligible to receive a grant for a subsequent fiscal year shall
receive a grant amount for any such subsequent fiscal year that is less
than the grant amount received for fiscal year 2009, unless--
``(1) the amount appropriated is not sufficient to provide
such grant amounts to all such institutions and programs that
received grants under this section for such fiscal year and

[[Page 3353]]
122 STAT. 3353

that are eligible to receive a grant in such subsequent fiscal
year; or
``(2) the institution cannot provide sufficient matching
funds to meet the requirements of this section.
``SEC. 724. [NOTE: 20 USC 1136b.] MASTERS DEGREE PROGRAMS AT
PREDOMINANTLY BLACK INSTITUTIONS.

``(a) Grant Program Authorized.--
``(1) In general.--Subject to the availability of funds
appropriated to carry out this section, the Secretary shall
award program grants to each of the institutions listed in
subsection (b)(1) that is determined by the Secretary to be
making a substantial contribution to graduate education
opportunities at the masters level in mathematics, engineering,
the physical or natural sciences, computer science, information
technology, nursing, allied health, or other scientific
disciplines for Black Americans.
``(2) Assurance of non-federal matching funds.--No grant in
excess of $1,000,000 may be made under this section unless the
institution provides assurances that 50 percent of the cost of
the purposes for which the grant is made will be paid from non-
Federal sources, except that no institution shall be required to
match any portion of the first $1,000,000 of the institution's
award from the Secretary. After funds are made available to each
eligible institution under the funding rules described in
subsection (f), the Secretary shall distribute, on a pro rata
basis, any amounts which were not so made available (by reason
of the failure of an institution to comply with the matching
requirements of this paragraph) among the institutions that have
complied with such matching requirement.
``(3) Minimum award.--Subject to subsections (f) and (g),
the amount awarded to each eligible institution listed in
subsection (b)(1) for a fiscal year shall be not less than
$500,000.
``(4) Duration of grants.--A grant awarded under this
section shall be for a period of not more than six years, but
may be periodically renewed for a period to be determined by the
Secretary.

``(b) Institutional Eligibility.--
``(1) In general.--Institutions eligible for grants under
subsection (a) are the following:
``(A) Chicago State University.
``(B) Columbia Union College.
``(C) Long Island University, Brooklyn campus.
``(D) Robert Morris College.
``(E) York College, The City University of New York.
``(2) Qualified masters degree program.--
``(A) In general.--For the purposes of this section,
the term `qualified masters degree program' means a
masters degree program that provides a program of
instruction in mathematics, engineering, the physical or
natural sciences, computer science, information
technology, nursing, allied health, or other scientific
disciplines in which African Americans are
underrepresented and has students enrolled in such
program of instruction at the time of application for a
grant under this section.

[[Page 3354]]
122 STAT. 3354

``(B) Enrollment exception.--Notwithstanding the
enrollment requirement contained in subparagraph (A), an
institution may use an amount equal to not more than 10
percent of the institution's grant under this section
for the development of a new qualified masters degree
program.
``(3) Institutional choice.--The president or chancellor of
the institution may decide which graduate school or qualified
masters degree program will receive funds under the grant in any
one fiscal year, if the allocation of funds among the schools or
programs is delineated in the application for funds submitted to
the Secretary under this section.
``(4) One grant per institution.--The Secretary shall not
award more than one grant under this section in any fiscal year
to any institution of higher education.

``(c) Application.--An eligible institution listed in subsection
(b)(1) desiring a grant under this section shall submit an application
at such time, in such manner, and containing such information as the
Secretary may require. The application shall--
``(1) demonstrate how the grant funds under this section
will be used to improve graduate educational opportunities for
Black and low-income students and lead to greater financial
independence; and
``(2) provide, in the case of applications for grants in
excess of $1,000,000, the assurances required under subsection
(a)(2) and specify the manner in which the eligible institution
is going to pay the non-Federal share of the cost of the
application.

``(d) Uses of Funds.--A grant under this section may be used for--
``(1) purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
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) scholarships, fellowships, and other financial
assistance for needy graduate students to permit the enrollment
of the students in, and completion of, a masters degree in
mathematics, engineering, the physical or natural sciences,
computer science, information technology, nursing, allied
health, or other scientific disciplines in which African
Americans are underrepresented;
``(5) establishing or improving a development office to
strengthen and increase contributions from alumni and the
private sector;
``(6) assisting in the establishment or maintenance of an
institutional endowment to facilitate financial independence
pursuant to section 331;
``(7) funds and administrative management, and the
acquisition of equipment, including software, for use in
strengthening funds management and management information
systems;

[[Page 3355]]
122 STAT. 3355

``(8) acquisition of real property that is adjacent to the
campus in connection with the construction, renovation, or
improvement of, or an addition to, campus facilities;
``(9) education or financial information designed to improve
the financial literacy and economic literacy of students or the
students' families, especially with regard to student
indebtedness and student assistance programs under title IV;
``(10) tutoring, counseling, and student service programs
designed to improve academic success;
``(11) faculty professional development, faculty exchanges,
and faculty participation in professional conferences and
meetings; and
``(12) other activities proposed in the application
submitted under subsection (c) that--
``(A) contribute to carrying out the purposes of
this section; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.

``(e) Interaction With Other Grant Programs.--No institution that is
eligible for and receives an award under section 326, 512, or 723 for a
fiscal year shall be eligible to apply for a grant, or receive grant
funds, under this section for the same fiscal year.
``(f) Funding Rule.--Subject to subsection (g), of the amount
appropriated to carry out this section for any fiscal year--
``(1) the first $2,500,000 (or any lesser amount
appropriated) shall be available only for the purposes of making
minimum grants under subsection (a)(3) to eligible institutions
listed in subparagraphs (A) through (E) of subsection (b)(1),
except that if the amount appropriated is not sufficient to pay
the minimum grant awards to all such eligible institutions, the
amount of the minimum award to each such eligible institution
shall be ratably reduced;
``(2) after the application of paragraph (1), an amount
shall be available for the purpose of making minimum grants
under subsection (a)(3) to eligible institutions described in
subsection (b)(1) that do not receive a grant under paragraph
(1), if any, except that if the amount appropriated is not
sufficient to pay the minimum grant awards to all such eligible
institutions, the amount of the minimum award to each such
eligible institution shall be ratably reduced; and
``(3) any amount in excess of $2,500,000 shall be made
available to each of the eligible institutions identified in
subparagraphs (A) through (E) of subsection (b)(1), 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
qualified masters degree program at the eligible
institution in the previous academic year.
``(C) The average cost of attendance per student,
for all full-time students enrolled in the qualified
masters degree program at such institution.
``(D) The number of students in the previous year
who received a degree in the qualified masters degree
program at such institution.

[[Page 3356]]
122 STAT. 3356

``(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 masters degrees in the
disciplines related to the programs for the previous
year.

``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and (3) of
subsection (f), no eligible institution identified in subsection (b)(1)
that receives a grant under this section for fiscal year 2009 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 2009, unless--
``(1) the amount appropriated is not sufficient to provide
such grant amounts to all such institutions and programs that
received grants under this section for such fiscal year and that
are eligible to receive a grant in such subsequent fiscal year;
or
``(2) the institution cannot provide sufficient matching
funds to meet the requirements of this section.
``SEC. 725. [NOTE: 20 USC 1136c.] AUTHORIZATION OF
APPROPRIATIONS.

``(a) Masters Degree Programs at Historically Black Colleges and
Universities.--There are authorized to be appropriated to carry out
section 723 such sums as may be necessary for fiscal year 2009 and each
of the five succeeding fiscal years.
``(b) Masters Degree Programs at Predominantly Black Institutions.--
There are authorized to be appropriated to carry out section 724 such
sums as may be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.''.
SEC. 707. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

(a) Contract and Grant Purposes.--Section 741(a) (20 U.S.C. 1138(a))
is amended--
(1) by striking paragraphs (1) through (3) and inserting the
following:
``(1) the encouragement of reform and improvement of, and
innovation in, postsecondary education and the provision of
educational opportunity for all students, including
nontraditional students;
``(2) the creation of institutions, programs, and joint
efforts involving paths to career and professional training,
including--
``(A) efforts that provide academic credit for
programs; and
``(B) combinations of academic and experiential
learning;
``(3) the establishment and continuation of institutions,
programs, consortia, collaborations, and other joint efforts
based on communications technology, including those efforts that
utilize distance education and technological advancements to
educate and train postsecondary students (including health
professionals serving medically underserved populations);'';
(2) by striking paragraph (6) and inserting the following:
``(6) the introduction of institutional reforms designed to
expand individual opportunities for entering and reentering
postsecondary institutions and pursuing programs of
postsecondary study tailored to individual needs;'';
(3) in paragraph (7), by striking ``and'' after the
semicolon;

[[Page 3357]]
122 STAT. 3357

(4) in paragraph (8), by striking the period at the end and
inserting a semicolon; and
(5) by adding at the end the following:
``(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 postsecondary
program completion;
``(10) the provision of support and assistance to
partnerships between institutions of higher education and
secondary schools with a significant population of students
identified as late-entering limited English proficient students,
to establish programs that--
``(A) result in increased secondary school
graduation rates of limited English proficient students;
and
``(B) increase the number of participating late-
entering limited English proficient students who pursue
postsecondary education;
``(11) the creation of consortia that join diverse
institutions of higher education to design and offer curricular
and cocurricular interdisciplinary programs at the undergraduate
and graduate levels, sustained for not less than a 5 year
period, that--
``(A) focus on poverty and human capability; and
``(B) include--
``(i) a service-learning component; and
``(ii) the delivery of educational services
through informational resource centers, summer
institutes, midyear seminars, and other
educational activities that stress the effects of
poverty and how poverty can be alleviated through
different career paths;
``(12) the provision of support and assistance for
demonstration projects to provide comprehensive support services
to ensure that homeless students, or students who were in foster
care or were a ward of the court at any time before the age of
13, enroll and succeed in postsecondary education, including
providing housing to such students during periods when housing
at the institution of higher education is closed or generally
unavailable to other students; and
``(13) the support of efforts to work with institutions of
higher education, and nonprofit organizations, that seek to
promote cultural diversity in the entertainment media industry,
including through the training of students in production,
marketing, and distribution of culturally relevant content.''.

(b) Center for Best Practices To Support Single Parent Students.--
Section 741 (20 U.S.C. 1138) is further amended by adding at the end the
following:
``(c) Center [NOTE: Grants. Contracts.] for Best Practices To
Support Single Parent Students.--
``(1) Program authorized.--The Secretary is authorized to
award one grant or contract to an institution of higher
education to enable such institution to establish and maintain a
center to study and develop best practices for institutions of
higher education to support single parents who are also students
attending such institutions.
``(2) Institution requirements.--The Secretary shall award
the grant or contract under this subsection to a four-

[[Page 3358]]
122 STAT. 3358

year institution of higher education that has demonstrated
expertise in the development of programs to assist single
parents who are students at institutions of higher education, as
shown by the institution's development of a variety of targeted
services to such students, including on-campus housing, child
care, counseling, advising, internship opportunities, financial
aid, and financial aid counseling and assistance.
``(3) Center activities.--The center funded under this
section shall--
``(A) assist institutions implementing innovative
programs that support single parents pursuing higher
education;
``(B) study and develop an evaluation protocol for
such programs that includes quantitative and qualitative
methodologies;
``(C) provide appropriate technical assistance
regarding the replication, evaluation, and continuous
improvement of such programs; and
``(D) develop and disseminate best practices for
such programs.''.

(c) Prohibition.--Section 741 (20 U.S.C. 1138) is further amended by
adding after subsection (c) (as added by subsection (b) of this section)
the following:
``(d) Prohibition.--
``(1) In general.--No funds made available under this part
shall be used to provide direct financial assistance in the form
of grants or scholarships to students who do not meet the
requirements of section 484(a).
``(2) Rule of construction.--Nothing in this subsection
shall be construed to prevent a student who does not meet the
requirements of section 484(a) from participating in programs
funded under this part.''.

(d) Priority.--Section 741 (20 U.S.C. 1138) is further amended by
adding after subsection (d) (as added by subsection (c) of this section)
the following:
``(e) Priority.--In making grants under this part to any institution
of higher education after the date of enactment of the Higher Education
Opportunity Act, the Secretary may give priority to institutions that
meet or exceed the most current version of ASHRAE/IES Standard 90.1 (as
such term is used in section 342(a)(6) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(a)(6)) for any new facilities
construction or major renovation of the institution after such date,
except that this subsection shall not apply with respect to barns or
greenhouses or similar structures owned by the institution.''.
(e) Scholarship Program for Family Members of Veterans or Members of
the Military.--Section 741 (20 U.S.C. 1138) is further amended by adding
after subsection (e) (as added by subsection (d) of this section) the
following:
``(f) Scholarship Program for Family Members of Veterans or Members
of the Military.--
``(1) Authorization.--
[NOTE: Contracts. Nonprofit organizations.] The Secretary
shall enter into a contract with a nonprofit organization with
demonstrated success in carrying out the activities described in
this subsection to carry out a program to provide postsecondary
education scholarships for eligible students.

[[Page 3359]]
122 STAT. 3359

``(2) Definition of eligible student.--In this subsection,
the term `eligible student' means an individual who is enrolled
as a full-time or part-time student at an institution of higher
education (as defined in section 102) and is--
``(A) a dependent student who is a child of--
``(i) an individual who is--
``(I) serving on active duty during
a war or other military operation or
national emergency (as defined in
section 481); or
``(II) performing qualifying
National Guard duty during a war or
other military operation or national
emergency (as defined in section 481);
or
``(ii) a veteran who--
``(I) served or performed, as
described in clause (i), since September
11, 2001; and
``(II) died, or has been disabled,
as a result of such service or
performance; or
``(B) an independent student who--
``(i) is a spouse of an individual who is--
``(I) serving on active duty during
a war or other military operation or
national emergency (as defined in
section 481); or
``(II) performing qualifying
National Guard duty during a war or
other military operation or national
emergency (as defined in section 481);
``(ii) was (at the time of death of the
veteran) a spouse of a veteran who--
``(I) served or performed, as
described in clause (i), since September
11, 2001; and
``(II) died as a result of such
service or performance; or
``(iii) is a spouse of a veteran who--
``(I) served or performed, as
described in clause (i), since September
11, 2001; and
``(II) has been disabled as a result
of such service or performance.
``(3) Awarding of scholarships.--Scholarships awarded under
this subsection shall be awarded based on need with priority
given to eligible students who are eligible to receive Federal
Pell Grants under subpart 1 of part A of title IV.
``(4) Maximum scholarship amount.--The maximum scholarship
amount awarded to an eligible student under this subsection for
an award year shall be the lesser of $5,000, or the student's
cost of attendance (as defined in section 472).
``(5) Amounts for scholarships.--All of the amounts
appropriated to carry out this subsection for a fiscal year
shall be used for scholarships awarded under this subsection,
except that the nonprofit organization receiving a contract
under this subsection may use not more than one percent of such
amounts for the administrative costs of the contract.''.

(f) Areas of National Need.--Section 744(c) (20 U.S.C. 1138c(c)) is
amended to read as follows:
``(c) Areas of National Need.--Areas of national need shall include,
at a minimum, the following:

[[Page 3360]]
122 STAT. 3360

``(1) Institutional restructuring to improve learning and
promote productivity, efficiency, quality improvement, and cost
reduction.
``(2) Improvements in academic instruction and student
learning, including efforts designed to assess the learning
gains made by postsecondary students.
``(3) Articulation between two- and four-year institutions
of higher education, including developing innovative methods for
ensuring the successful transfer of students from two- to four-
year institutions of higher education.
``(4) Development, evaluation, and dissemination of model
courses, including model courses 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 study of a foreign language that leads
to reading and writing competency in the foreign
language.
``(5) International cooperation and student exchanges among
postsecondary educational institutions.
``(6) Support of centers to incorporate education in quality
and safety into the preparation of medical and nursing students,
through grants to medical schools, nursing schools, and
osteopathic schools. Such grants shall be used to assist in
providing courses of instruction that specifically equip
students to--
``(A) understand the causes of, and remedies for,
medical error, medically induced patient injuries and
complications, and other defects in medical care;
``(B) engage effectively in personal and systemic
efforts to continually reduce medical harm; and
``(C) improve patient care and outcomes, as
recommended by the Institute of Medicine.''.

(g) Authorization of Appropriations for the Fund for the Improvement
of Postsecondary Education.--Section 745 (20 U.S.C. 1138d) is amended by
striking ``$30,000,000 for fiscal year 1999'' and all that follows
through the period at the end and inserting ``such sums as may be
necessary for fiscal year 2009 and each of the five succeeding fiscal
years.''.
(h) Technical FIPSE Amendments.--Part B of title VII (20 U.S.C. 1138
et seq.) is further amended--
(1) in section 742 (20 U.S.C. 1138a)--
(A) in subsection (b)--
(i) by striking ``(b) Membership.--'' and all
that follows through ``The Secretary'' and
inserting ``(b) Membership.--The Secretary''; and
(ii) by striking paragraph (2);
(B) in subsection (c), by striking ``and the
Director'' each place the term appears; and
(C) in subsection (d), by striking ``Director'' and
inserting ``Secretary'';
(2) in section 743 (20 U.S.C. 1138b)--
(A) by striking ``(a) Technical Employees.--''; and
(B) by striking subsection (b); and

[[Page 3361]]
122 STAT. 3361

(3) in section 744(a) (20 U.S.C. 1138c(a)), by striking
``Director'' each place the term appears and inserting
``Secretary''.
SEC. 708. REPEAL OF THE URBAN COMMUNITY SERVICE PROGRAM.

Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.
SEC. 709. PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A
QUALITY HIGHER EDUCATION.

Title VII (20 U.S.C. 1133 et seq.) is further amended--
(1) by redesignating section 771 (20 U.S.C. 1141) as section
781; and
(2) by striking part D of title VII (20 U.S.C. 1140 et seq.)
and inserting the following:

``PART D--PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A QUALITY
HIGHER EDUCATION

``SEC. 760. [NOTE: 20 USC 1140.] DEFINITIONS.

``In this part:
``(1) Comprehensive transition and postsecondary program for
students with intellectual disabilities.--The term
`comprehensive transition and postsecondary program for students
with intellectual disabilities' means a degree, certificate, or
nondegree program that is--
``(A) offered by an institution of higher education;
``(B) designed to support students with intellectual
disabilities who are seeking to continue academic,
career and technical, and independent living instruction
at an institution of higher education in order to
prepare for gainful employment;
``(C) includes an advising and curriculum structure;
and
``(D) requires students with intellectual
disabilities to participate on not less than a half-time
basis, as determined by the institution, with such
participation focusing on academic components and
occurring through one or more of the following
activities:
``(i) Regular enrollment in credit-bearing
courses with nondisabled students offered by the
institution.
``(ii) Auditing or participating in courses
with nondisabled students offered by the
institution for which the student does not receive
regular academic credit.
``(iii) Enrollment in noncredit-bearing,
nondegree courses with nondisabled students.
``(iv) Participation in internships or work-
based training in settings with nondisabled
individuals.
``(2) Student with an intellectual disability.--The term
`student with an intellectual disability' means a student--
``(A) with mental retardation or a cognitive
impairment, characterized by significant limitations
in--
``(i) intellectual and cognitive functioning;
and
``(ii) adaptive behavior as expressed in
conceptual, social, and practical adaptive skills;
and

[[Page 3362]]
122 STAT. 3362

``(B) who is currently, or was formerly, eligible
for a free appropriate public education under the
Individuals with Disabilities Education Act.

``Subpart 1--Demonstration Projects to Support Postsecondary Faculty,
Staff, and Administrators in Educating Students With Disabilities

``SEC. 761. [NOTE: 20 USC 1140a.] PURPOSE.

``It is the purpose of this subpart to support model demonstration
projects to provide technical assistance or professional development for
postsecondary faculty, staff, and administrators in institutions of
higher education to enable such faculty, staff, and administrators to
provide students with disabilities with a quality postsecondary
education.
``SEC. 762. [NOTE: 20 USC 1140b.] GRANTS, CONTRACTS, AND
COOPERATIVE AGREEMENTS AUTHORIZED.

``(a) Competitive Grants, Contracts, and Cooperative Agreements
Authorized.--
``(1) In general.--From amounts appropriated under section
765, the Secretary may award grants, contracts, and cooperative
agreements, on a competitive basis, to institutions of higher
education to enable the institutions to carry out the activities
under subsection (b).
``(2) Awards for professional development and technical
assistance.--Not less than two grants, contracts, cooperative
agreements, or a combination of such awards shall be awarded to
institutions of higher education that provide professional
development and technical assistance in order for students with
learning disabilities to receive a quality postsecondary
education.

``(b) Duration; Activities.--
``(1) Duration.--A grant, contract, or cooperative agreement
under this subpart shall be awarded for a period of three years.
``(2) Authorized activities.--A grant, contract, or
cooperative agreement awarded under this subpart 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, consistent with the
principles of universal design for learning, to provide
postsecondary faculty, staff, and administrators with
the skills and supports necessary to teach and meet the
academic and programmatic needs of students with
disabilities, in order to improve the retention of such
students in, and the completion by such students of,
postsecondary education. Such methods and strategies may
include in-service training, professional development,
customized and general technical assistance, workshops,
summer institutes, distance learning, and training in
the use of assistive and educational technology.
``(B) Effective transition practices.--The
development of innovative and effective teaching methods
and strategies to provide postsecondary faculty, staff,
and

[[Page 3363]]
122 STAT. 3363

administrators with the skill and supports necessary to
ensure the successful and smooth transition of students
with disabilities from secondary school to postsecondary
education.
``(C) Synthesizing research and information.--The
synthesis of research and other information related to
the provision of postsecondary educational services to
students with disabilities, including data on the impact
of a postsecondary education on subsequent employment of
students with disabilities.
Such [NOTE: Public information.] 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 postsecondary faculty, staff, and
administrators with the ability to provide accessible
distance education programs or classes that would
enhance the access of students with disabilities to
postsecondary education, including the use of accessible
curricula and electronic communication for instruction
and advising.
``(E) Disability career pathways.--
``(i) In general.--The provision of
information, training, and technical assistance to
secondary and postsecondary faculty, staff, and
administrators with respect to disability-related
fields that would enable such faculty, staff, and
administrators to--
``(I) encourage interest and
participation in such fields, among
students with disabilities and other
students;
``(II) enhance awareness and
understanding of such fields among
students with disabilities and other
students;
``(III) provide educational
opportunities in such fields for
students with disabilities and other
students;
``(IV) teach practical skills
related to such fields to students with
disabilities and other students; and
``(V) offer work-based opportunities
in such fields to students with
disabilities and other students.
``(ii) Development.--The training and support
described in subclauses (I) through (V) of clause
(i) may include offering students--
``(I) credit-bearing postsecondary-
level coursework; and
``(II) career and educational
counseling.
``(F) Professional development and training
sessions.--The conduct of professional development and
training sessions for postsecondary faculty, staff, and
administrators from other institutions of higher
education to enable such individuals to meet the
educational needs of students with disabilities.
``(G) Accessibility of education.--Making
postsecondary education more accessible to students with
disabilities through curriculum development, consistent
with the principles of universal design for learning.

[[Page 3364]]
122 STAT. 3364

``(3) Mandatory evaluation and dissemination.--An
institution of higher education awarded a grant, contract, or
cooperative agreement under this subpart shall evaluate and
disseminate to other institutions of higher education, the
information obtained through the activities described in
subparagraphs (A) through (G) of paragraph (2).

``(c) Considerations in Making Awards.--In awarding grants,
contracts, or cooperative agreements under this subpart, the Secretary
shall consider the following:
``(1) Geographic distribution.--Providing an equitable
geographic distribution of such awards.
``(2) Rural and urban areas.--Distributing such awards to
urban and rural areas.
``(3) Range and type of institution.--Ensuring that the
activities to be assisted are developed for a range of types and
sizes of institutions of higher education.
``(4) Prior experience or exceptional programs.--
Distributing the awards to institutions of higher education with
demonstrated prior experience in, or exceptional programs for,
meeting the postsecondary educational needs of students with
disabilities.

``(d)  [NOTE: Public information.] Reports.--
``(1) Initial report.--Not later than one year after the
date of enactment of the Higher Education Opportunity Act, the
Secretary shall prepare and submit to the authorizing
committees, and make available to the public, a report on all
demonstration projects awarded grants under this part for any of
fiscal years 1999 through 2008, including a review of the
activities and program performance of such demonstration
projects based on existing information as of the date of the
report.
``(2) Subsequent report.--Not later than three years after
the date of the first award of a grant under this subpart after
the date of enactment of the Higher Education Opportunity Act,
the Secretary shall prepare and submit to the authorizing
committees, and make available to the public, a report that--
``(A) reviews the activities and program performance
of the demonstration projects authorized under this
subpart; and
``(B) provides guidance and recommendations on how
effective projects can be replicated.
``SEC. 763. [NOTE: 20 USC 1140c.] APPLICATIONS.

``Each institution of higher education desiring to receive a grant,
contract, or cooperative agreement under this subpart 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 the activities authorized under this
subpart that the institution proposes to carry out, and how such
institution plans to conduct such activities in order to further
the purpose of this subpart;
``(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;

[[Page 3365]]
122 STAT. 3365

``(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 effectiveness
in serving students with disabilities.
``SEC. 764. [NOTE: 20 USC 1140d.] RULE OF CONSTRUCTION.

``Nothing in this subpart shall be construed to impose any
additional duty, obligation, or responsibility on an institution of
higher education or on the institution's faculty, administrators, or
staff than is required under section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794) and the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.).
``SEC. 765. [NOTE: 20 USC 1140e.] AUTHORIZATION OF
APPROPRIATIONS.

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

``Subpart 2--Transition Programs for Students With Intellectual
Disabilities Into Higher Education

``SEC. 766. [NOTE: 20 USC 1140f.] PURPOSE.

``It is the purpose of this subpart to support model demonstration
programs that promote the successful transition of students with
intellectual disabilities into higher education.
``SEC. 767. MODEL [NOTE: 20 USC 1140g.] COMPREHENSIVE TRANSITION
AND POSTSECONDARY PROGRAMS FOR STUDENTS
WITH INTELLECTUAL DISABILITIES.

``(a) Grants Authorized.--
``(1) In general.--From amounts appropriated under section
769(a), the Secretary shall annually award grants, on a
competitive basis, to institutions of higher education (or
consortia of institutions of higher education), to enable the
institutions or consortia to create or expand high quality,
inclusive model comprehensive transition and postsecondary
programs for students with intellectual disabilities.
``(2) Administration.--The program under this section shall
be administered by the office in the Department that administers
other postsecondary education programs.
``(3) Duration of grants.--A grant under this section shall
be awarded for a period of 5 years.

``(b) Application.--An institution of higher education (or a
consortium) desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
``(c) Award Basis.--In awarding grants under this section, the
Secretary shall--
``(1) provide for an equitable geographic distribution of
such grants;
``(2) provide grant funds for model comprehensive transition
and postsecondary programs for students with intellectual

[[Page 3366]]
122 STAT. 3366

disabilities that will serve areas that are underserved by
programs of this type; and
``(3) give preference to applications submitted under
subsection (b) that agree to incorporate into the model
comprehensive transition and postsecondary program for students
with intellectual disabilities carried out under the grant one
or more of the following elements:
``(A) The formation of a partnership with any
relevant agency serving students with intellectual
disabilities, such as a vocational rehabilitation
agency.
``(B) In the case of an institution of higher
education that provides institutionally owned or
operated housing for students attending the institution,
the integration of students with intellectual
disabilities into the housing offered to nondisabled
students.
``(C) The involvement of students attending the
institution of higher education who are studying special
education, general education, vocational rehabilitation,
assistive technology, or related fields in the model
program.

``(d) Use of Funds.--An institution of higher education (or
consortium) receiving a grant under this section shall use the grant
funds to establish a model comprehensive transition and postsecondary
program for students with intellectual disabilities that--
``(1) serves students with intellectual disabilities;
``(2) provides individual supports and services for the
academic and social inclusion of students with intellectual
disabilities in academic courses, extracurricular activities,
and other aspects of the institution of higher education's
regular postsecondary program;
``(3) with respect to the students with intellectual
disabilities participating in the model program, provides a
focus on--
``(A) academic enrichment;
``(B) socialization;
``(C) independent living skills, including self-
advocacy skills; and
``(D) integrated work experiences and career skills
that lead to gainful employment;
``(4) integrates person-centered planning in the development
of the course of study for each student with an intellectual
disability participating in the model program;
``(5) participates with the coordinating center established
under section 777(b) in the evaluation of the model program;
``(6) partners with one or more local educational agencies
to support students with intellectual disabilities participating
in the model program who are still eligible for special
education and related services under the Individuals with
Disabilities Education Act, including the use of funds available
under part B of such Act to support the participation of such
students in the model program;
``(7) plans for the sustainability of the model program
after the end of the grant period; and
``(8) creates and offers a meaningful credential for
students with intellectual disabilities upon the completion of
the model program.

``(e) Matching Requirement.--An institution of higher education (or
consortium) that receives a grant under this section

[[Page 3367]]
122 STAT. 3367

shall provide matching funds toward the cost of the model comprehensive
transition and postsecondary program for students with intellectual
disabilities carried out under the grant. Such matching funds may be
provided in cash or in-kind, and shall be in an amount of not less than
25 percent of the amount of such costs.
``(f) Report.--Not later than five years after the date of the first
grant awarded under this section, the Secretary shall prepare and
disseminate a report to the authorizing committees and to the public
that--
``(1) reviews the activities of the model comprehensive
transition and postsecondary programs for students with
intellectual disabilities funded under this section; and
``(2) provides guidance and recommendations on how effective
model programs can be replicated.
``SEC. 768. [NOTE: 20 USC 1140h.] RULE OF CONSTRUCTION.

``Nothing in this subpart shall be construed to reduce or expand--
``(1) the obligation of a State or local educational agency
to provide a free appropriate public education, as defined in
section 602 of the Individuals with Disabilities Education Act;
or
``(2) eligibility requirements under any Federal, State, or
local disability law, including the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.), the Rehabilitation Act of
1973 (29 U.S.C. 701 et seq.), or the Developmental Disabilities
Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15001 et
seq.).
``SEC. 769. [NOTE: 20 USC 1140i.] AUTHORIZATION OF
APPROPRIATIONS AND RESERVATION.

``(a) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this subpart such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.
``(b) Reservation of Funds.-- [NOTE: Contracts.] For any fiscal
year for which appropriations are made for this subpart, the Secretary
shall reserve funds to enter into a cooperative agreement to establish
the coordinating center under section 777(b), in an amount that is--
``(1) not less than $240,000 for any year in which the
amount appropriated to carry out this subpart is $8,000,000 or
less; or
``(2) equal to 3 percent of the amount appropriated to carry
out this subpart for any year in which such amount appropriated
is greater than $8,000,000.

``Subpart 3--Commission on Accessible Materials; Programs to Support
Improved Access to Materials

``SEC. 771. [NOTE: 20 USC 1140k.] DEFINITION OF STUDENT WITH A
PRINT DISABILITY.

``In this subpart, the term `student with a print disability' means
a student with a disability who experiences barriers to accessing
instructional material in nonspecialized formats, including an
individual described in section 121(d)(2) of title 17, United States
Code.

[[Page 3368]]
122 STAT. 3368

``SEC. 772. [NOTE: 20 USC 1140l.] ESTABLISHMENT OF ADVISORY
COMMISSION ON ACCESSIBLE INSTRUCTIONAL
MATERIALS IN POSTSECONDARY EDUCATION FOR
STUDENTS WITH DISABILITIES.

``(a) Establishment.--
``(1) In general.--The Secretary shall establish a
commission to be known as the Advisory Commission on Accessible
Instructional Materials in Postsecondary Education for Students
with Disabilities (in this section referred to as the
`Commission').
``(2) Membership.--
``(A) Total number of members.--The Commission shall
include not more than 19 members, who shall be appointed
by the Secretary in accordance with in subparagraphs (B)
and (C).
``(B) Members of the commission.--The Commission
members shall include one representative from each of
the following categories:
``(i) The Office of Postsecondary Education of
the Department.
``(ii) The Office of Special Education and
Rehabilitative Services of the Department.
``(iii) The Office for Civil Rights of the
Department.
``(iv) The Library of Congress National
Digital Information and Infrastructure
Preservation Program Copyright Working Group.
``(v) The Association on Higher Education and
Disability.
``(vi) The Association of American Publishers.
``(vii) The Association of American University
Presses.
``(viii) The National Council on Disability.
``(ix) Recording for the Blind and Dyslexic.
``(x) National organizations representing
individuals with visual impairments.
``(xi) National organizations representing
individuals with learning disabilities.
``(C) Additional members of the commission.--The
Commission members shall include two representatives
from each of the following categories:
``(i) Staff from institutions of higher
education with demonstrated experience teaching or
supporting students with print disabilities,
including representatives from both two-year and
four-year institutions of higher education of
different sizes.
``(ii) Producers of accessible materials,
publishing software, and supporting technologies
in specialized formats, such as Braille, audio or
synthesized speech, and digital media.
``(iii) Individuals with visual impairments,
including not less than one currently enrolled
postsecondary student.
``(iv) Individuals with dyslexia or other
learning disabilities related to reading,
including not less than one currently enrolled
postsecondary student.
``(D) Timing.-- [NOTE: Deadline.] The Secretary
shall appoint the members of the Commission not later
than 60 days after the Commission is established under
paragraph (1).

[[Page 3369]]
122 STAT. 3369

``(3) Chairperson and vice chairperson.--The Commission
shall select a chairperson and vice chairperson from among the
members of the Commission.
``(4) Meetings.--
``(A) In general.--The Commission shall meet at the
call of the Chairperson.
``(B) First [NOTE: Deadline.] meeting.--Not later
than 60 days after the appointment of the members of the
Commission under paragraph (2)(D), the Commission shall
hold the Commission's first meeting.
``(5) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.

``(b) Duties of the Commission.--
``(1) Study.--
``(A) In general.--The Commission shall conduct a
comprehensive study to--
``(i) assess the barriers and systemic issues
that may affect, and technical solutions available
that may improve, the timely delivery and quality
of accessible instructional materials for
postsecondary students with print disabilities, as
well as the effective use of such materials by
faculty and staff; and
``(ii) make recommendations related to the
development of a comprehensive approach to improve
the opportunities for postsecondary students with
print disabilities to access instructional
materials in specialized formats in a timeframe
comparable to the availability of instructional
materials for postsecondary nondisabled students.
``(B) Existing information.--To the extent
practicable, in carrying out the study under this
paragraph, the Commission shall identify and use
existing research, recommendations, and information.
``(C) Recommendations.--
``(i) In general.--The Commission shall
develop recommendations--
``(I) to inform Federal regulations
and legislation;
``(II) to support the model
demonstration programs authorized under
section 773;
``(III) to identify best practices
in systems for collecting, maintaining,
processing, and disseminating materials
in specialized formats to students with
print disabilities at costs comparable
to instructional materials for
postsecondary nondisabled students;
``(IV) to improve the effective use
of such materials by faculty and staff,
while complying with applicable
copyright law; and
``(V) to modify the definitions of
instructional materials, authorized
entities, and eligible students, as such
terms are used in applicable Federal
law, for the purpose of improving
services to students with disabilities.

[[Page 3370]]
122 STAT. 3370

``(ii) Considerations.--In developing the
recommendations under subparagraph (C), the
Commission shall consider--
``(I) how students with print
disabilities may obtain instructional
materials in accessible formats--
``(aa) within a timeframe
comparable to the availability
of instructional materials for
nondisabled students; and
``(bb) to the maximum extent
practicable, at costs comparable
to the costs of such materials
for nondisabled students;
``(II) the feasibility and technical
parameters of establishing standardized
electronic file formats, such as the
National Instructional Materials
Accessibility Standard as defined in
section 674(e)(3) of the Individuals
with Disabilities Education Act, to be
provided by publishers of instructional
materials to producers of materials in
specialized formats, institutions of
higher education, and eligible students;
``(III) the feasibility of
establishing a national clearinghouse,
repository, or file-sharing network for
electronic files in specialized formats
and files used in producing
instructional materials in specialized
formats, and a list of possible entities
qualified to administer such
clearinghouse, repository, or network;
``(IV) the feasibility of
establishing market-based solutions
involving collaborations among
publishers of instructional materials,
producers of materials in specialized
formats, and institutions of higher
education;
``(V) solutions utilizing universal
design; and
``(VI) solutions for low-incidence,
high-cost requests for instructional
materials in specialized formats.
``(2) Report.--Not later than one year after the
Commission's first meeting, the Commission shall submit a report
to the Secretary and the authorizing committees detailing the
findings and recommendations of the study conducted under
paragraph (1).
``(3) Dissemination of information.--In carrying out the
study under paragraph (1), the Commission shall disseminate
information concerning the issues that are the subject of the
study through--
``(A) the National Technical Assistance Center
established under subpart 4; and
``(B) other means, as determined by the Commission.

``(c) Termination of the Commission.--The Commission shall terminate
on the date that is 90 days after the date on which the Commission
submits the report under subsection (b)(2) to the Secretary and the
authorizing committees.

[[Page 3371]]
122 STAT. 3371

``SEC. 773. MODEL [NOTE: Grants. Contracts. 20 USC
1140m.] DEMONSTRATION PROGRAMS TO SUPPORT
IMPROVED ACCESS TO POSTSECONDARY
INSTRUCTIONAL MATERIALS FOR STUDENTS WITH
PRINT DISABILITIES.

``(a) Purpose.--It is the purpose of this section to support model
demonstration programs for the purpose of encouraging the development of
systems to improve the quality of postsecondary instructional materials
in specialized formats and such materials' timely delivery to
postsecondary students with print disabilities, including systems to
improve efficiency and reduce duplicative efforts across multiple
institutions of higher education.
``(b) Definition of Eligible Partnership.--In this section, the term
`eligible partnership' means a partnership that--
``(1) shall include--
``(A) an institution of higher education with
demonstrated expertise in meeting the needs of students
with print disabilities, including the retention of such
students in, and such students' completion of,
postsecondary education; and
``(B) a public or private entity, other than an
institution of higher education, with--
``(i) demonstrated expertise in developing
accessible instructional materials in specialized
formats for postsecondary students with print
disabilities; and
``(ii) the technical development expertise
necessary for the efficient dissemination of such
materials, including procedures to protect against
copyright infringement with respect to the
creation, use, and distribution of instructional
materials in specialized formats; and
``(2) may include representatives of the publishing
industry.

``(c) Program Authorized.--From amounts appropriated under section
775, the Secretary shall award grants or contracts, on a competitive
basis, to not less than one eligible partnership to enable the eligible
partnership to support the activities described in subsection (f) and,
as applicable, subsection (g).
``(d) Application.--An eligible partnership that desires a grant or
contract under this section shall submit an application at such time, in
such manner, and in such format as the Secretary may prescribe. The
application shall include information on how the eligible partnership
will implement activities under subsection (f) and, as applicable,
subsection (g).
``(e) Priority.--In awarding grants or contracts under this section,
the Secretary shall give priority to any applications that include the
development and implementation of the procedures and approaches
described in paragraphs (2) and (3) of subsection (g).
``(f) Required Activities.--An eligible partnership that receives a
grant or contract under this section shall use the grant or contract
funds to carry out the following:
``(1) Supporting the development and implementation of the
following:
``(A) Processes and systems to help identify, and
verify eligibility of, postsecondary students with print
disabilities in need of instructional materials in
specialized formats.
``(B) Procedures and systems to facilitate and
simplify request methods for accessible instructional
materials in specialized formats from eligible students
described in

[[Page 3372]]
122 STAT. 3372

subparagraph (A), which may include a single point-of-
entry system.
``(C) Procedures and systems to coordinate among
institutions of higher education, publishers of
instructional materials, and entities that produce
materials in specialized formats, to efficiently
facilitate--
``(i) requests for such materials;
``(ii) the responses to such requests; and
``(iii) the delivery of such materials.
``(D) Delivery systems that will ensure the timely
provision of instructional materials in specialized
formats to eligible students, which may include
electronic file distribution.
``(E) Systems to reduce duplicative conversions and
improve sharing of the same instructional materials in
specialized formats for multiple eligible students at
multiple institutions of higher education.
``(F) Procedures to protect against copyright
infringement with respect to the development, use, and
distribution of instructional materials in specialized
formats while maintaining accessibility for eligible
students, which may include digital technologies such as
watermarking, fingerprinting, and other emerging
approaches.
``(G) Awareness, outreach, and training activities
for faculty, staff, and students related to the
acquisition and dissemination of instructional materials
in specialized formats and instructional materials
utilizing universal design.
``(2) Providing recommendations on how effective procedures
and systems described in paragraph (1) may be disseminated and
implemented on a national basis.

``(g) Authorized Approaches.--An eligible partnership that receives
a grant or contract under this section may use the grant or contract
funds to support the development and implementation of the following:
``(1) Approaches for the provision of instructional
materials in specialized formats limited to instructional
materials used in smaller categories of postsecondary courses,
such as introductory, first-, and second-year courses.
``(2) Approaches supporting a unified search for
instructional materials in specialized formats across multiple
databases or lists of available materials.
``(3) Market-based approaches for making instructional
materials in specialized formats directly available to eligible
students at prices comparable to standard instructional
materials.

``(h) Report.--Not later than three years after the date of the
first grant or contract awarded under this section, the Secretary shall
submit to the authorizing committees a report that includes--
``(1) the number of grants and contracts and the amount of
funds distributed under this section;
``(2) a summary of the purposes for which the grants and
contracts were provided and an evaluation of the progress made
under such grants and contracts;
``(3) a summary of the activities implemented under
subsection (f) and, as applicable, subsection (g), including
data on the number of postsecondary students with print
disabilities

[[Page 3373]]
122 STAT. 3373

served and the number of instructional material requests
executed and delivered in specialized formats; and
``(4) an evaluation of the effectiveness of programs funded
under this section.

``(i) Model Expansion.--The Secretary may, on the basis of the
reports under subsection (h) and section 772(b)(2) and any evaluations
of the projects funded under this section, expand the program under this
section to additional grant or contract recipients that use other
programmatic approaches and serve different geographic regions, if the
Secretary finds that the models used under this section--
``(1) are effective in improving the timely delivery and
quality of materials in specialized formats; and
``(2) provide adequate protections against copyright
infringement.
``SEC. 774. [NOTE: 20 USC 1140n.] RULE OF CONSTRUCTION.

``Nothing in this subpart shall be construed to limit or preempt any
State law requiring the production or distribution of postsecondary
instructional materials in accessible formats to students with
disabilities.
``SEC. 775. [NOTE: 20 USC 1140o.] AUTHORIZATION OF
APPROPRIATIONS.

``(a) In General.--There are authorized to be appropriated to carry
out this subpart such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years.
``(b) Priority.--For the first fiscal year for which funds are made
available under this section, the Secretary shall give priority to
allocating funding for the purposes of section 772.

``Subpart 4--National Technical Assistance Center; Coordinating Center

``SEC. 776. [NOTE: 20 USC 1140p.] PURPOSE.

``It is the purpose of this subpart to provide technical assistance
and information on best and promising practices to students with
disabilities, the families of students with disabilities, and entities
awarded grants, contracts, or cooperative agreements under subpart 1, 2,
or 3 to improve the postsecondary recruitment, transition, retention,
and completion rates of students with disabilities.
``SEC. 777. NATIONAL [NOTE: 20 USC 1140q.] TECHNICAL ASSISTANCE
CENTER; COORDINATING CENTER.

``(a) National Center.--
``(1) In general.-- [NOTE: Grants. Contracts.] From
amounts appropriated under section 778, the Secretary shall
award a grant to, or enter into a contract or cooperative
agreement with, an eligible entity to provide for the
establishment and support of a National Center for Information
and Technical Support for Postsecondary Students with
Disabilities (in this subsection referred to as the `National
Center'). The National Center shall carry out the duties set
forth in paragraph (4).
``(2) Administration.--The program under this section shall
be administered by the office in the Department that administers
other postsecondary education programs.
``(3) Eligible entity.--In this subpart, the term `eligible
entity' means an institution of higher education, a nonprofit

[[Page 3374]]
122 STAT. 3374

organization, or partnership of two or more such institutions or
organizations, with demonstrated expertise in--
``(A) supporting students with disabilities in
postsecondary education;
``(B) technical knowledge necessary for the
dissemination of information in accessible formats;
``(C) working with diverse types of institutions of
higher education, including community colleges; and
``(D) the subjects supported by the grants,
contracts, or cooperative agreements authorized in
subparts 1, 2, and 3.
``(4) Duties.--The duties of the National Center shall
include the following:
``(A) Assistance to students and families.--The
National Center shall provide information and technical
assistance to students with disabilities and the
families of students with disabilities to support
students across the broad spectrum of disabilities,
including--
``(i) information to assist individuals with
disabilities who are prospective students of an
institution of higher education in planning for
postsecondary education while the students are in
secondary school;
``(ii) information and technical assistance
provided to individualized education program teams
(as defined in section 614(d)(1) of the
Individuals with Disabilities Education Act) for
secondary school students with disabilities, and
to early outreach and student services programs,
including programs authorized under subparts 2, 4,
and 5 of part A of title IV, to support students
across a broad spectrum of disabilities with the
successful transition to postsecondary education;
``(iii) research-based supports, services, and
accommodations which are available in
postsecondary settings, including services
provided by other agencies such as vocational
rehabilitation;
``(iv) information on student mentoring and
networking opportunities for students with
disabilities; and
``(v) effective recruitment and transition
programs at postsecondary educational
institutions.
``(B) Assistance to institutions of higher
education.--The National Center shall provide
information and technical assistance to faculty, staff,
and administrators of institutions of higher education
to improve the services provided to, the accommodations
for, the retention rates of, and the completion rates
of, students with disabilities in higher education
settings, which may include--
``(i) collection and dissemination of best and
promising practices and materials for
accommodating and supporting students with
disabilities, including practices and materials
supported by the grants, contracts, or cooperative
agreements authorized under subparts 1, 2, and 3;
``(ii) development and provision of training
modules for higher education faculty on exemplary
practices for accommodating and supporting
postsecondary students with disabilities across a
range of academic

[[Page 3375]]
122 STAT. 3375

fields, which may include universal design for
learning and practices supported by the grants,
contracts, or cooperative agreements authorized
under subparts 1, 2, and 3; and
``(iii) development of technology-based
tutorials for higher education faculty and staff,
including new faculty and graduate students, on
best and promising practices related to support
and retention of students with disabilities in
postsecondary education.
``(C) Information [NOTE: Records.] collection and
dissemination.--The National Center shall be responsible
for building, maintaining, and updating a database of
disability support services information with respect to
institutions of higher education, or for expanding and
updating an existing database of disabilities support
services information with respect to institutions of
higher education. Such [NOTE: Public information. Web
site.] database shall be available to the general
public through a website built to high technical
standards of accessibility practicable for the broad
spectrum of individuals with disabilities. Such database
and website shall include available information on--
``(i) disability documentation requirements;
``(ii) support services available;
``(iii) links to financial aid;
``(iv) accommodations policies;
``(v) accessible instructional materials;
``(vi) other topics relevant to students with
disabilities; and
``(vii) the information in the report
described in subparagraph (E).
``(D) Disability support services.--The National
Center shall work with organizations and individuals
with proven expertise related to disability support
services for postsecondary students with disabilities to
evaluate, improve, and disseminate information related
to the delivery of high quality disability support
services at institutions of higher education.
``(E) Review and report.--Not later than three years
after the establishment of the National Center, and
every two years thereafter, the National Center shall
prepare and disseminate a report to the Secretary and
the authorizing committees analyzing the condition of
postsecondary success for students with disabilities.
Such report shall include--
``(i) a review of the activities and the
effectiveness of the programs authorized under
this part;
``(ii) annual enrollment and graduation rates
of students with disabilities in institutions of
higher education from publicly reported data;
``(iii) recommendations for effective
postsecondary supports and services for students
with disabilities, and how such supports and
services may be widely implemented at institutions
of higher education;
``(iv) recommendations on reducing barriers to
full participation for students with disabilities
in higher education; and

[[Page 3376]]
122 STAT. 3376

``(v) a description of strategies with a
demonstrated record of effectiveness in improving
the success of such students in postsecondary
education.
``(F) Staffing of the center.--In hiring employees
of the National Center, the National Center shall
consider the expertise and experience of prospective
employees in providing training and technical assistance
to practitioners.

``(b) Coordinating Center.--
``(1) Definition of eligible entity.--In this subsection,
the term `eligible entity' means an entity, or a partnership of
entities, that has demonstrated expertise in the fields of--
``(A) higher education;
``(B) the education of students with intellectual
disabilities;
``(C) the development of comprehensive transition
and postsecondary programs for students with
intellectual disabilities; and
``(D) evaluation and technical assistance.
``(2) In general.-- [NOTE: Contracts.] From amounts
appropriated under section 778, the Secretary shall enter into a
cooperative agreement, on a competitive basis, with an eligible
entity for the purpose of establishing a coordinating center for
institutions of higher education that offer inclusive
comprehensive transition and postsecondary programs for students
with intellectual disabilities, including institutions
participating in grants authorized under subpart 2, to provide--
``(A) recommendations related to the development of
standards for such programs;
``(B) technical assistance for such programs; and
``(C) evaluations for such programs.
``(3) Administration.--The program under this subsection
shall be administered by the office in the Department that
administers other postsecondary education programs.
``(4) Duration.--The [NOTE: Contracts.] Secretary shall
enter into a cooperative agreement under this subsection for a
period of five years.
``(5) Requirements of cooperative agreement.--The eligible
entity entering into a cooperative agreement under this
subsection shall establish and maintain a coordinating center
that shall--
``(A) serve as the technical assistance entity for
all comprehensive transition and postsecondary programs
for students with intellectual disabilities;
``(B) provide technical assistance regarding the
development, evaluation, and continuous improvement of
such programs;
``(C) develop an evaluation protocol for such
programs that includes qualitative and quantitative
methodologies for measuring student outcomes and program
strengths in the areas of academic enrichment,
socialization, independent living, and competitive or
supported employment;
``(D) assist recipients of grants under subpart 2 in
efforts to award a meaningful credential to students
with intellectual disabilities upon the completion of
such programs, which credential shall take into
consideration unique State factors;
``(E) develop recommendations for the necessary
components of such programs, such as--

[[Page 3377]]
122 STAT. 3377

``(i) academic, vocational, social, and
independent living skills;
``(ii) evaluation of student progress;
``(iii) program administration and evaluation;
``(iv) student eligibility; and
``(v) issues regarding the equivalency of a
student's participation in such programs to
semester, trimester, quarter, credit, or clock
hours at an institution of higher education, as
the case may be;
``(F) analyze possible funding streams for such
programs and provide recommendations regarding the
funding streams;
``(G) develop model memoranda of agreement for use
between or among institutions of higher education and
State and local agencies providing funding for such
programs;
``(H) develop mechanisms for regular communication,
outreach and dissemination of information about
comprehensive transition and postsecondary programs for
students with intellectual disabilities under subpart 2
between or among such programs and to families and
prospective students;
``(I) host a meeting of all recipients of grants
under subpart 2 not less often than once each year; and
``(J) convene a workgroup to develop and recommend
model criteria, standards, and components of such
programs as described in subparagraph (E), that are
appropriate for the development of accreditation
standards, which workgroup shall include--
``(i) an expert in higher education;
``(ii) an expert in special education;
``(iii) a disability organization that
represents students with intellectual
disabilities;
``(iv) a representative from the National
Advisory Committee on Institutional Quality and
Integrity; and
``(v) a representative of a regional or
national accreditation agency or association.
``(6) Report.--Not later than five years after the date of
the establishment of the coordinating center under this
subsection, the coordinating center shall report to the
Secretary, the authorizing committees, and the National Advisory
Committee on Institutional Quality and Integrity on the
recommendations of the workgroup described in paragraph (5)(J).
``SEC. 778. [NOTE: 20 USC 1140r.] AUTHORIZATION OF
APPROPRIATIONS.

``There are authorized to be appropriated to carry out this subpart
such sums as may be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.''.
SEC. 710. SUBGRANTS TO NONPROFIT ORGANIZATIONS.

Section 781 (as redesignated by section 709(1)) (20 U.S.C. 1141) is
amended--
(1) in subsection (a), by striking the second sentence and
inserting the following: ``In addition to the amount authorized
and appropriated under the preceding sentence, there are
authorized to be appropriated to carry out this section such
sums as may be necessary for fiscal year 2009 and each of the
five succeeding fiscal years.'';

[[Page 3378]]
122 STAT. 3378

(2) in subsection (b)(1), by inserting ``, subject to the
availability of appropriations,'' after ``the Secretary shall'';
and
(3) in subsection (e), by inserting after ``of this Act)''
the following: ``, or those nonprofit organizations that have
agreements with the Secretary under section 435(j)''.

TITLE VIII--ADDITIONAL PROGRAMS

SEC. 801. ADDITIONAL PROGRAMS.

The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is further
amended by adding at the end the following new title:

``TITLE VIII--ADDITIONAL PROGRAMS

``PART A--PROJECT GRAD

``SEC. 801. [NOTE: 20 USC 1161a.] PROJECT GRAD.

``(a) Purposes.--The purposes of this section are--
``(1) to provide support and assistance to programs
implementing integrated education reform services in order to
improve secondary school graduation, postsecondary program
attendance, and postsecondary completion rates for low-income
students; and
``(2) to promote the establishment of new programs to
implement such integrated education reform services.

``(b) Definitions.--In this section:
``(1) Low-income student.--The term `low-income student'
means a student who is determined by a local educational agency
to be from a low-income family using the measures described in
section 1113(a)(5) of the Elementary and Secondary Education Act
of 1965.
``(2) Feeder pattern.--The term `feeder pattern' means a
secondary school and the elementary schools and middle schools
that channel students into that secondary school.

``(c) Contract Authorized.--From the amount appropriated to carry
out this section, the Secretary is authorized to award a five-year
contract to Project GRAD USA (referred to in this section as the
`contractor'), a nonprofit education organization that has as its
primary purpose the improvement of secondary school graduation and
postsecondary attendance and completion rates for low-income students.
Such contract shall be used to carry out the requirements of subsection
(d) and to implement and sustain integrated education reform services
through subcontractor activities described in subsection (e)(3) at
existing Project GRAD program sites and to promote the expansion to new
sites.
``(d) Requirements of Contract.--The Secretary shall enter into an
agreement with the contractor that requires that the contractor shall--
``(1) enter into subcontracts with nonprofit educational
organizations that serve a substantial number or percentage of
low-income students (referred to in this subsection as
`subcontractors'), under which the subcontractors agree to
implement the Project GRAD programs described in subsection (e)
and provide matching funds for such programs;
``(2) directly carry out--

[[Page 3379]]
122 STAT. 3379

``(A) activities to implement and sustain the
literacy, mathematics, classroom management, social
service, and postsecondary access programs further
described in subsection (e)(3);
``(B) activities to build the organizational and
management capacity of the subcontractors to effectively
implement and sustain the programs;
``(C) activities for the purpose of improving and
expanding the programs, including activities--
``(i) to further articulate a program for one
or more grade levels and across grade levels;
``(ii) to tailor a program for a particular
target audience; and
``(iii) to provide tighter integration across
programs;
``(D) activities for the purpose of implementing new
Project GRAD program sites;
``(E) activities for the purpose of promoting
greater public awareness of integrated education reform
services to improve secondary school graduation and
postsecondary attendance rates for low-income students;
and
``(F) other activities directly related to improving
secondary school graduation and postsecondary attendance
and completion rates for low-income students; and
``(3) use contract funds available under this section to
pay--
``(A) the amount determined under subsection (f);
and
``(B) costs associated with carrying out the
activities and providing the services, as provided in
paragraph (2) of this subsection.

``(e) Supported Programs.--
``(1) Designation.--The subcontractor programs referred to
in this subsection shall be known as Project GRAD programs.
``(2) Feeder patterns.--Each subcontractor shall implement a
Project GRAD program and shall, with the agreement of the
contractor--
``(A) identify or establish not less than one feeder
pattern of public schools; and
``(B) provide the integrated educational reform
services described in paragraph (3) at each identified
feeder pattern.
``(3) Integrated education reform services.--The services
provided through a Project GRAD program may include--
``(A) research-based programs in reading,
mathematics, and classroom management;
``(B) campus-based social services programs,
including a systematic approach to increase family and
community involvement in the schools served by the
Project GRAD program;
``(C) a postsecondary access program that includes--
``(i) providing postsecondary scholarships for
students who meet established criteria;
``(ii) proven approaches for increasing
student and family postsecondary awareness; and
``(iii) assistance for students in applying
for higher education financial aid; and
``(D) such other services identified by the
contractor as necessary to increase secondary school
graduation and postsecondary attendance and completion
rates.

[[Page 3380]]
122 STAT. 3380

``(f) Use of Funds.--Of the funds made available to carry out this
section, not more than five percent of such funds, or $4,000,000,
whichever is less, shall be used by the contractor to pay for
administration of the contract.
``(g) Contribution and Matching Requirement.--
``(1) In general.--The contractor shall provide to each
subcontractor an average of $200 for each student served by the
subcontractor in the Project GRAD program, adjusted to take into
consideration--
``(A) the resources or funds available in the area
where the subcontractor will implement the Project GRAD
program; and
``(B) the need for the Project GRAD program in such
area to improve student outcomes, including reading and
mathematics achievement, secondary school graduation,
and postsecondary attendance and completion rates.
``(2) Matching requirement.--Each subcontractor shall
provide funds for the Project GRAD program in an amount that is
equal to the amount received by the subcontractor from the
contractor. Such matching funds may be provided in cash or in
kind, fairly evaluated.
``(3) Waiver authority.--The contractor may waive, in whole
or in part, the requirement of paragraph (2) for a
subcontractor, if the subcontractor--
``(A) demonstrates that the subcontractor would not
otherwise be able to participate in the program; and
``(B) enters into an agreement with the contractor
with respect to the amount to which the waiver will
apply.

``(h) Evaluation.--
``(1) Evaluation by the secretary.-- [NOTE: Deadline.] The
Secretary shall select an independent entity to evaluate, every
three years, the performance of students who participate in a
Project GRAD program under this section. The evaluation shall--
``(A) be conducted using a rigorous research design
for determining the effectiveness of the Project GRAD
programs funded under this section; and
``(B) compare reading and mathematics achievement,
secondary school graduation, and postsecondary
attendance and completion rates of students who
participate in a Project GRAD program funded under this
section with those indicators for students of similar
backgrounds who do not participate in such program.
``(2) Evaluation [NOTE: Reports.] by contractor and
subcontractors.--The contractor shall require each subcontractor
to prepare an in-depth report of the results and the use of
funds of each Project GRAD program funded under this section
that includes--
``(A) data on the reading and mathematics
achievement of students involved in the Project GRAD
program;
``(B) data on secondary school graduation and
postsecondary attendance and completion rates; and
``(C) such financial reporting as required by the
Secretary to review the effectiveness and efficiency of
the program.
``(3) Availability of evaluations.--Copies of any evaluation
or report prepared under this subsection shall be made available
to--

[[Page 3381]]
122 STAT. 3381

``(A) the Secretary; and
``(B) the authorizing committees.

``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART B--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM

``SEC. 802. [NOTE: Grants. 20 USC 1161b.] MATHEMATICS AND
SCIENCE SCHOLARS PROGRAM.

``(a) Program Authorized.--From the amounts appropriated under
subsection (f), the Secretary is authorized to award grants to States,
on a competitive basis, to enable the States to encourage students to
pursue a rigorous course of study, beginning in secondary school and
continuing through the students' postsecondary education, in science,
technology, engineering, mathematics, or a health-related field.
``(b) Applications.--
``(1) In general.--A State 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. A State may submit an application to
receive a grant under subsection (c) or (d), or both.
``(2) Contents of application.--Each application shall
include a description of--
``(A) the program or programs for which the State is
applying;
``(B) if applicable, the priority set by the
Governor pursuant to subsection (c)(4) or (d)(3); and
``(C) how the State will meet the requirements of
subsection (e).

``(c) Mathematics and Science Scholars Program.--
``(1) Grant for scholarships.--The Secretary shall award
grants under this subsection to provide scholarship support to
eligible students.
``(2) Eligible students.--A student is eligible for a
scholarship under this subsection if the student--
``(A) meets the requirements of section 484(a);
``(B) is a full-time student in the student's first
year of undergraduate study; and
``(C) has completed a rigorous secondary school
curriculum in mathematics and science.
``(3) Rigorous curriculum.--Each participating State shall
determine the requirements for a rigorous secondary school
curriculum in mathematics and science described in paragraph
(2)(C).
``(4) Priority for scholarships.--The Governor of a State
may set a priority for awarding scholarships under this
subsection for particular eligible students, such as students
attending schools in high-need local educational agencies (as
defined in section 200), 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 other high-need students.

[[Page 3382]]
122 STAT. 3382

``(5) Amount and duration of scholarship.--The Secretary
shall award a grant under this subsection to provide
scholarships--
``(A) in an amount that does not exceed $5,000 per
student; and
``(B) for not more than one year of undergraduate
study.

``(d) STEM or Health-Related Scholars Program.--
``(1) Grant for scholarships.--The Secretary shall award
grants under this subsection to provide scholarship support to
eligible students.
``(2) Eligible students.--A student is eligible for
scholarship under this subsection if the student--
``(A) meets the requirements of section 484(a);
``(B) is a full-time student who has completed at
least the first year of undergraduate study;
``(C) is enrolled in a program of undergraduate
instruction leading to a bachelor's degree with a major
in science, technology, engineering, mathematics, or a
health-related field; and
``(D) has obtained a cumulative grade point average
of at least a 3.0 (or the equivalent as determined under
regulation prescribed by the Secretary) at the end of
the most recently completed term.
``(3) Priority for scholarships.--The Governor of a State
may set a priority for awarding scholarships under this
subsection for students agreeing to work in areas of science,
technology, engineering, mathematics, or health-related fields.
``(4) Amount and duration of scholarship.--The Secretary
shall award a grant under this subsection to provide
scholarships--
``(A) in an amount that does not exceed $5,000 per
student for an academic year; and
``(B) in an aggregate amount that does not exceed
$20,000 per student.

``(e) 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.
``(f) Authorization.--There are authorized to be appropriated to
carry out this section such sums as may be necessary for fiscal year
2009 and each of the five succeeding fiscal years.
``(g) Definition.--The term `Governor' means the chief executive
officer of a State.

``PART C--BUSINESS WORKFORCE PARTNERSHIPS FOR JOB SKILL TRAINING IN
HIGH-GROWTH OCCUPATIONS OR INDUSTRIES

``SEC. 803. [NOTE: Grants. 20 USC 1161c.] BUSINESS WORKFORCE
PARTNERSHIPS FOR JOB SKILL TRAINING IN
HIGH-GROWTH OCCUPATIONS OR INDUSTRIES.

``(a) Purpose.--The purpose of this section is to provide grants to
institutions of higher education partnering with employers to--
``(1) provide relevant job skill training in high-growth and
high-wage industries or occupations to nontraditional students;
and

[[Page 3383]]
122 STAT. 3383

``(2) strengthen ties between degree credit offerings at
institutions of higher education and business and industry
workforce needs.

``(b) Authorization.--
``(1) In general.--From the amounts appropriated under
subsection (k), the Secretary shall award grants, on a
competitive basis, to eligible partnerships for the purpose
provided in subsection (a).
``(2) Duration.--The Secretary shall award grants under this
section for a period of not less than 36 months and not more
than 60 months.
``(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 (c).

``(c) Use of Funds.--In consultation with all of the members of an
eligible partnership, grant funds provided under this section may be
used to--
``(1) expand or create for-credit academic programs or
programs of training that provide relevant job skill training
for high-growth and high-wage occupations or industries,
including offerings connected to registered apprenticeship
programs and entrepreneurial training opportunities;
``(2) in consultation with faculty in the appropriate
departments of an institution of higher education, adapt college
offerings to the schedules and needs of working students, such
as the creation of evening, weekend, modular, compressed, or
distance learning formats;
``(3) purchase equipment that will facilitate the
development of academic programs or programs of training that
provide training for high-growth and high-wage occupations or
industries;
``(4) strengthen outreach efforts that enable students,
including students with limited English proficiency, to attend
institutions of higher education with academic programs or
programs of training focused on high-growth and high-wage
occupations or industries;
``(5) expand worksite learning and training opportunities,
including registered apprenticeships as appropriate; and
``(6) support other activities the Secretary determines to
be consistent with the purpose of this section.

``(d) 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 and
high-wage occupations or industries; and
``(B) how the eligible partnership has consulted
with employers and, where applicable, labor
organizations to identify local high-growth and high-
wage occupations or industries.

[[Page 3384]]
122 STAT. 3384

``(e) Award Basis.--In awarding grants under this section, the
Secretary shall--
``(1) give priority to applications focused on serving
nontraditional students;
``(2) ensure an equitable distribution of grant funds under
this section among urban and rural areas of the United States;
and
``(3) take into consideration the capability of an
institution of higher education that is participating in an
eligible partnership to--
``(A) offer one- or two-year high-quality programs
of instruction and job skill training for students
entering a high-growth and high-wage occupation or
industry;
``(B) involve the local business community, and to
place graduates in employment in high-growth and high-
wage occupations or industries in the community; and
``(C) serve adult workers or displaced workers.

``(f) Administrative Costs.--A grantee under this section may use
not more than five percent of the grant amount to pay administrative
costs associated with activities funded by the grant.
``(g) Technical Assistance.--The Secretary shall provide technical
assistance to grantees under this section throughout the grant period.
``(h) Evaluation.-- [NOTE: Public information.] The Secretary
shall conduct an evaluation of the effectiveness of the program under
this section based on performance standards developed in consultation
with the Department of Labor, and shall disseminate to the public the
findings of such evaluation and information related to promising
practices developed under this section.

``(i) Report to Congress.--Not later than 36 months after the first
grant is awarded under this section, the Comptroller General shall
report to the authorizing committees recommendations--
``(1) for changes to this Act and related Acts, such as the
Carl D. Perkins Career and Technical Education Act of 2006 and
the Workforce Investment Act of 1998 (including titles I and
II), to help create and sustain business and industry workforce
partnerships at institutions of higher education; and
``(2) for other changes to this Act and related Acts to
otherwise strengthen the links between business and industry
workforce needs, workforce development programs, and other
degree credit offerings at institutions of higher education.

``(j) Definitions.--In this section:
``(1) Eligible partnership.--
``(A) In general.--The term `eligible partnership'
means a partnership that includes--
``(i) one or more institutions of higher
education, one of which serves as the fiscal agent
and grant recipient for the eligible partnership;
``(ii) except as provided in subparagraph (B),
an employer, group of employers, local board (as
such term is defined in section 101 of the
Workforce Investment Act of 1998 (29 U.S.C.
2801)), or workforce intermediary, or any
combination thereof; and
``(iii) where applicable, one or more labor
organizations that represent workers locally in
the businesses or industries that are the focus of
the partnership,

[[Page 3385]]
122 STAT. 3385

including as a result of such an organization's
representation of employees at a worksite at which
the partnership proposes to conduct activities
under this section.
``(B) State and local boards.--Notwithstanding
subparagraph (A), if an institution of higher education
that is participating in an eligible partnership under
this section is located in a State that does not operate
local boards, an eligible partnership may include a
State board (as such term is defined in section 101 of
the Workforce Investment Act of 1998 (29 U.S.C. 2801)).
``(C) Rule of construction.--Nothing in this
subsection shall be construed to prohibit an eligible
partnership that is in existence on the date of
enactment of the Higher Education Opportunity Act from
applying for a grant under this section.
``(2) Nontraditional student.--The term `nontraditional
student' means a student--
``(A) who is an independent student, as defined in
section 480(d);
``(B) who 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 education methods; and
``(C) who--
``(i) enrolled for the first time in an
institution of higher education three or more
years after completing high school; or
``(ii) works full-time.

``(k) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART D--CAPACITY FOR NURSING STUDENTS AND FACULTY

``SEC. 804. [NOTE: Grants. 20 USC 1161d.] CAPACITY FOR NURSING
STUDENTS AND FACULTY.

``(a) Authorization.--From the amounts appropriated under subsection
(f), the Secretary shall award grants to institutions of higher
education that offer--
``(1) an accredited registered nursing program at the
baccalaureate or associate degree level to enable such program
to expand the faculty and facilities of such program to
accommodate additional students in such program; or
``(2) an accredited graduate-level nursing program to
accommodate advanced practice degrees for registered nurses or
to accommodate students enrolled in such program to become
teachers of nursing students.

``(b) Determination of Number of Students and Application.--Each
institution of higher education that offers a program described in
subsection (a) that desires to receive a grant under this section
shall--
``(1) determine, for the four academic years preceding the
academic year for which the determination is made, the average
number of matriculated nursing program students, in each of the
institution's accredited associate, baccalaureate, or

[[Page 3386]]
122 STAT. 3386

advanced nursing degree programs at such institution for such
academic years;
``(2) submit an application to the Secretary at such time,
in such manner, and accompanied by such information as the
Secretary may require, including the average number in each of
the institution's accredited nursing programs determined under
paragraph (1); and
``(3) with respect to the partnerships described in
subsection (c)(2)(B), provide assurances that--
``(A) the individuals enrolled in the program will--
``(i) be registered nurses in pursuit of a
master's or doctoral degree in nursing; and
``(ii) have a contractual obligation with the
hospital or health facility that is in partnership
with the institution of higher education;
``(B) the hospital or health facility of employment
will be the clinical site for the accredited school of
nursing program, if the program requires a clinical
site;
``(C) individuals enrolled in the program will--
``(i) maintain their employment on at least a
part-time basis with the hospital or health
facility that allowed them to participate in the
program; and
``(ii) receive an income from the hospital or
health facility, as at least a part-time employee,
and release times or flexible schedules, to
accommodate their program requirements, as
necessary; and
``(D) upon completion of the program, recipients of
scholarships described in subsection (c)(2)(B)(ii)(III)
will be required to teach for two years in an accredited
school of nursing for each year of support the
individual received under this section.

``(c) Grant Amount; Award Basis.--
``(1) Grant amount.--For each academic year after academic
year 2009-2010, the Secretary is authorized to provide to each
institution of higher education awarded a grant under this
section an amount that is equal to $3,000 multiplied by the
number by which--
``(A) the number of matriculated nursing program
students at such institution for such academic year,
exceeds
``(B) the average number determined with respect to
such institution under subsection (b)(1).
``(2) Distribution of grants among different degree
programs.--
``(A) In general.--Subject to subparagraph (D), from
the funds available to award grants under this section
for each fiscal year, the Secretary shall--
``(i) use 20 percent of such funds to award
grants under this section to institutions of
higher education for the purpose of accommodating
advanced practice degrees or students in
accredited graduate-level nursing programs;
``(ii) use 40 percent of such funds to award
grants under this section to institutions of
higher education for the purpose of expanding
accredited registered nurse programs at the
baccalaureate degree level; and
``(iii) use 40 percent of such funds to award
grants under this section to institutions of
higher education

[[Page 3387]]
122 STAT. 3387

for the purpose of expanding accredited registered
nurse programs at the associate degree level.
``(B) Optional uses of funds.--Grants awarded under
this section may be used to support partnerships with
hospitals or health facilities to--
``(i) improve the alignment between nursing
education and the emerging challenges of health
care delivery by--
``(I) the purchase of distance
learning technologies and expanding
methods of delivery of instruction to
include alternatives to onsite learning;
and
``(II) the collection, analysis, and
dissemination of data on educational
outcomes and best practices identified
through the activities described in this
section; and
``(ii) ensure that students can earn a salary
while obtaining an advanced degree in nursing with
the goal of becoming nurse faculty by--
``(I) funding release time for
qualified nurses enrolled in the
graduate nursing program;
``(II) providing for faculty
salaries; or
``(III) providing scholarships to
qualified nurses in pursuit of an
advanced degree with the goal of
becoming faculty members in an
accredited nursing program.
``(C) Considerations in making awards.--In awarding
grants under this section, the Secretary shall consider
the following:
``(i) Geographic distribution.--Providing an
equitable geographic distribution of such grants.
``(ii) Urban and rural areas.--Distributing
such grants to urban and rural areas.
``(iii) Range and type of institution.--
Ensuring that the activities to be assisted are
developed for a range of types and sizes of
institutions of higher education, including
institutions providing alternative methods of
delivery of instruction in addition to on-site
learning.
``(D) Distribution of excess funds.--If, for a
fiscal year, funds described in clause (i), (ii), or
(iii) of subparagraph (A) remain available after the
Secretary awards grants under this section to all
applicants for the particular category of accredited
nursing programs described in such clause, the Secretary
shall use equal amounts of the remaining funds to award
grants under this section to applicants that applied
under the other categories of nursing programs.
``(E) Limitation.--Of the amount appropriated to
carry out this section, the Secretary may award not more
than ten percent of such amount for the optional
purposes under subparagraph (B).

``(d) Definition.--For purposes of this section:
``(1) Health facility.--The term `health facility' means an
Indian health service center, a Native Hawaiian health center, a
hospital, a federally qualified health center, a rural health
clinic, a nursing home, a home health agency, a hospice

[[Page 3388]]
122 STAT. 3388

program, a public health clinic, a State or local department of
public health, a skilled nursing facility, or an ambulatory
surgical center.
``(2) Accredited.--The terms `accredited school of nursing'
and `accredited nursing program' have the meaning given those
terms in section 801 of the Public Health Service Act (42 U.S.C.
296).

``(e) Prohibition.--
``(1) In general.--Funds provided under this section may not
be used for the construction of new facilities.
``(2) Rule of construction.--Nothing in paragraph (1) shall
be construed to prohibit funds provided under this section from
being used for the repair or renovation of facilities.

``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART E--AMERICAN HISTORY FOR FREEDOM

``SEC. 805. [NOTE: Grants. 20 USC 1161e.] AMERICAN HISTORY FOR
FREEDOM.

``(a) Grants Authorized.--From the amounts appropriated under
subsection (f), the Secretary is authorized to award three-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 section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require.
``(2) Contents.--Each application submitted under paragraph
(1) shall include a description of--
``(A) how funds made available under this section
will be used for the activities set forth under
subsection (e), including how such activities will
increase knowledge with

[[Page 3389]]
122 STAT. 3389

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
section 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 section
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 section.

``(d) Award Basis.--In awarding grants under this section, 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 section after
the grant has expired.

``(e) Use of Funds.--
``(1) Required use of funds.--Funds provided under this
section 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 traditional
American history, free institutions, or Western
civilization; and
``(B) conduct outreach activities to ensure that
information about the activities funded under this
section 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
section may be used to support--
``(A) collaboration with entities such as--

[[Page 3390]]
122 STAT. 3390

``(i) local educational agencies, for the
purpose of providing elementary 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 section,
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 section.

``(f) Authorization of Appropriations.--For the purpose of carrying
out this section, there are authorized to be appropriated such sums as
may be necessary for fiscal year 2009 and each of the five succeeding
fiscal years.

``PART F--TEACH FOR AMERICA

``SEC. 806. [NOTE: Grants. 20 USC 1161f.] TEACH FOR AMERICA.

``(a) Definitions.--For purposes of this section:
``(1) Grantee.--The term `grantee' means Teach For America,
Inc.
``(2) Highly qualified.--The term `highly qualified' has the
meaning given the term in section 9101 of the Elementary and
Secondary Education Act of 1965 or section 602 of the
Individuals with Disabilities Education Act.
``(3) High-need local educational agency.--The term `high-
need local educational agency' has the meaning given such term
in section 200.

``(b) Grants Authorized.--From the amounts appropriated under
subsection (f), the Secretary is authorized to award a five-year grant
to Teach For America, Inc., the national teacher corps of outstanding
recent college graduates who commit to teach for two years in
underserved communities in the United States, to implement and expand
its program of recruiting, selecting, training, and supporting new
teachers.
``(c) Requirements.-- [NOTE: Contracts.] 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 to--
``(1) provide highly qualified teachers to high-need local
educational agencies in urban and rural communities;
``(2) pay the costs of recruiting, selecting, training, and
supporting new teachers; and
``(3) 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 such teachers
through a rigorous summer institute that includes hands-
on teaching experience and significant exposure to
education coursework and theory.

[[Page 3391]]
122 STAT. 3391

``(C) Placing such teachers in schools and positions
designated by high-need local educational agencies as
high-need placements serving underserved students.
``(D) Providing ongoing professional development
activities for such teachers' first two 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 (b), except that funds may
be used for non-programmatic costs in accordance with subsection
(f)(2).

``(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 such teachers received,
the placement sites of such teachers, the professional
development of such teachers, and the retention of such
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) Student 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.
``(C) Requirements.--The Secretary shall provide for
such a study not less than once every three years, and
each such study shall include multiple placement sites
and multiple schools within placement sites.
``(D) Peer review standards.--Each such study shall
meet the peer review standards of the education research
community. Further, the peer review standards shall
ensure that reviewers are practicing researchers and
have expertise in assessment systems, accountability,
psychometric measurement and statistics, and
instruction.
``(3) Accounting, financial reporting, and internal control
systems.--
``(A) In general.-- [NOTE: Contracts.] The grantee
shall contract with an independent auditor to conduct a
comprehensive review of the grantee's accounting,
financial reporting, and internal control systems. Such
review shall assess whether that grantee's accounting,
financial reporting, and internal control systems are
designed to--
``(i) provide information that is complete,
accurate, and reliable;

[[Page 3392]]
122 STAT. 3392

``(ii) reasonably detect and prevent material
misstatements, as well as fraud, waste, and abuse;
and
``(iii) provide information to demonstrate the
grantee's compliance with related Federal
programs, as applicable.
``(B) Review requirements.-- [NOTE: Deadline.] Not
later than 90 days after the grantee receives funds to
carry out this section for the first fiscal year in
which funds become available to carry out this section
after the date of enactment of the Higher Education
Opportunity Act, the independent auditor shall complete
the review required by this paragraph.
``(C) Report.--Not later than 120 days after the
grantee receives funds to carry out this section for the
first fiscal year in which funds become available to
carry out this section after the date of enactment of
the Higher Education Opportunity Act, the independent
auditor shall submit a report to the authorizing
committees and the Secretary of the findings of the
review required under this paragraph, including any
recommendations of the independent auditor, as
appropriate, with respect to the grantee's accounting,
financial reporting, and internal control systems.

``(f) Authorization of Appropriations.--
``(1) In general.--The amount authorized to be appropriated
to carry out this section shall not exceed--
``(A) $20,000,000 for fiscal year 2009;
``(B) $25,000,000 for fiscal year 2010; and
``(C) such sums as may be necessary for each of the
four succeeding fiscal years.
``(2) Limitation.--The grantee shall not use more than 5
percent of Federal funds made available under this section for
non-programmatic costs to carry out this section.

``PART G--PATSY T. MINK FELLOWSHIP PROGRAM

``SEC. 807. [NOTE: 20 USC 1161g.] PATSY T. MINK FELLOWSHIP
PROGRAM.

``(a) Purpose; Designation.--
``(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) Eligible Institution.--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.--

[[Page 3393]]
122 STAT. 3393

``(A) In general.--From the amounts appropriated
under subsection (f), 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.--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 school 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.
``(C) Partnership.--In developing a grant
application and carrying out the grant activities
authorized under this section, an eligible institution
may partner with a nonprofit organization with a
demonstrated record of helping minorities and women earn
postbaccalaureate degrees.
``(3) Selection of applications.--In awarding grants under
paragraph (1), 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 faculty.
``(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

[[Page 3394]]
122 STAT. 3394

private 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 are eligible for assistance under title III or
title V, or to consortia of eligible institutions that
include at least one eligible institution that is
eligible for assistance under title III or title V.
``(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 ten fellowship awards.
``(E) Insufficient funds.--If the amount
appropriated is not sufficient to permit all grantees
under this section to provide the minimum number of
fellowships required by subparagraph (D), the Secretary
may, after awarding as many grants to support the
minimum number of fellowships as such amount
appropriated permits, award grants that do not require
the grantee to award the minimum number of fellowships
required by such subparagraph.
``(5) Institutional allowance.--
``(A) In general.--
``(i) Number of allowances.--
[NOTE: Payments.] 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
subparagraph (C), for academic year 2009-2010 and
succeeding academic years, an institutional
allowance under this paragraph shall be in an
amount equal to 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 at the discretion of the eligible institution
and may be used to provide, except as prohibited under
subparagraph (D), academic support and career transition
services for individuals awarded fellowships by such
institution.
``(C) Reduction.--The institutional allowance paid
under subparagraph (A) 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

[[Page 3395]]
122 STAT. 3395

operational overhead of the academic department or
institution receiving funds under this section.

``(d) Fellowship Recipients.--
``(1) [NOTE: Minorities. Women.] 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 program, or program for the highest possible
degree available, 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)); and
``(iii) 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 subparagraph (A) not later than three
years after receiving the doctoral degree or
highest possible degree available, which three-
year period may be extended by the Secretary for
extraordinary circumstances; and
``(ii) to be employed by such institution for
one year for each year of fellowship assistance
received under this section.
``(2) Repayment for failure to comply.--
[NOTE: Regulations.] In the event that any recipient of a
fellowship under this section fails or refuses to comply with
the agreement signed pursuant to paragraph (1)(B), the sum of
the amounts of any fellowship received by such recipient shall,
upon a determination of such a failure or refusal to comply, be
treated as a Federal Direct Unsubsidized Stafford Loan under
part D of title IV, and shall be subject to repayment, together
with interest thereon accruing from the date of the grant award,
in accordance with terms and conditions specified by the
Secretary in regulations under this section.
``(3) Waiver and modification.--
``(A) Regulations.-- [NOTE: Criteria.] The
Secretary shall promulgate regulations setting forth
criteria to be considered in granting a waiver for the
service requirement under paragraph (1)(B).
``(B) Content.--The criteria under subparagraph (A)
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 fellows under the National
Science Foundation Graduate Research Fellowship Program, 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

[[Page 3396]]
122 STAT. 3396

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

``PART H--IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS

``SEC. 808. IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS.

``(a) In General.-- [NOTE: Grants. Nonprofit organization. 20 USC
1161h.] From the amounts appropriated under subsection (c), the
Secretary shall award a grant to one nonprofit organization described in
subsection (b) to enable the nonprofit organization--
``(1) to make publicly available the year-to-year
postsecondary education enrollment rate trends of secondary
school students, disaggregated by secondary school, in
compliance with the Family Education Rights and Privacy Act of
1974;
``(2) to identify not less than 50 urban local educational
agencies and five States with significant rural populations,
each serving a significant population of low-income students,
and to carry out a comprehensive assessment in the agencies and
States of the factors known to contribute to improved
postsecondary education enrollment rates, which factors shall
include--
``(A) the local educational agency's and State's
leadership strategies and capacities;
``(B) the secondary school curriculum and class
offerings of the local educational agency and State;
``(C) the professional development used by the local
educational agency and the State to assist teachers,
guidance counselors, and administrators in supporting
the transition of secondary students to postsecondary
education;

[[Page 3397]]
122 STAT. 3397

``(D) secondary school student attendance and other
factors demonstrated to be associated with enrollment
into postsecondary education;
``(E) the use of data systems by the local
educational agency and the State to measure
postsecondary education enrollment rates and the
incentives in place to motivate the efforts of faculty
and students to improve student and schoolwide outcomes;
and
``(F) strategies to mobilize student leaders to
build a college-bound culture; and
``(3) to provide comprehensive services to improve the
schoolwide postsecondary education enrollment rates of each of
not less than ten local educational agencies and States, with
the federally funded portion of each project declining by not
less than 20 percent each year beginning in the second year of
the comprehensive services, that--
``(A) participated in the needs assessment described
in paragraph (2); and
``(B) demonstrated a willingness and commitment to
improving the postsecondary education enrollment rates
of the local educational agency or State, respectively.

``(b) Grant Recipient Criteria.--The recipient of the grant awarded
under subsection (a) shall be a nonprofit organization with demonstrated
expertise--
``(1) in increasing schoolwide postsecondary enrollment
rates in low-income communities nationwide by providing
curriculum, training, and technical assistance to secondary
school staff and student peer influencers; and
``(2) in a postsecondary education transition data
management system.

``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART I--EARLY CHILDHOOD EDUCATION PROFESSIONAL DEVELOPMENT AND CAREER
TASK FORCE

``SEC. [NOTE: 20 USC 1161i.] 811. PURPOSE.

``The purposes of this part are--
``(1) to improve the quality of the early childhood
education workforce by creating a statewide early childhood
education professional development and career task force for
early childhood education program staff, directors,
administrators, and faculty; and
``(2) to create--
``(A) a coherent system of core competencies,
pathways to qualifications, credentials, degrees,
quality assurances, access, and outreach, for early
childhood education program staff, directors,
administrators, and faculty that is linked to
compensation commensurate with experience and
qualifications;
``(B) articulation agreements that enable early
childhood education professionals to transition easily
among degrees; and

[[Page 3398]]
122 STAT. 3398

``(C) compensation initiatives for individuals
working in an early childhood education program that
reflect the individuals' credentials, degrees, and
experience.
``SEC. 812. [NOTE: 20 USC 1161i-1.] DEFINITION OF EARLY
CHILDHOOD EDUCATION PROGRAM.

``In this part, the term `early childhood education program' means--
``(1) a Head Start program or an Early Head Start program
carried out under the Head Start Act (42 U.S.C. 9831 et seq.),
including a migrant or seasonal Head Start program or an Indian
Head Start program;
``(2) a State licensed or regulated child care program; or
``(3) a State prekindergarten program or a program
authorized under section 619 or part C of the Individuals with
Disabilities Education Act, that serves children from birth
through age six and that addresses the children's cognitive
(including language, early literacy, and pre-numeracy), social,
emotional, and physical development.
``SEC. 813. [NOTE: 20 USC 1161i-2.] GRANTS AUTHORIZED.

``(a) In General.--From the amounts appropriated under section 818,
the Secretary is authorized to award grants to States in accordance with
the provisions of this part to enable such States--
``(1) to establish a State Task Force described in section
814; and
``(2) to support activities of the State Task Force
described in section 815.

``(b) Competitive Basis.--Grants under this part shall be awarded on
a competitive basis.
``(c) Equitable Geographic Distribution.--In awarding grants under
this part, the Secretary shall take into consideration providing an
equitable geographic distribution of such grants.
``(d) Duration.--Grants under this part shall be awarded for a
period of five years.
``SEC. 814. [NOTE: 20 USC 1161i-3.] STATE TASK FORCE
ESTABLISHMENT.

``(a) State Task Force Established.--The Governor of a State
receiving a grant under this part shall establish, or designate an
existing entity to serve as, the State Early Childhood Education
Professional Development and Career Task Force (hereafter in this part
referred to as the `State Task Force').
``(b) Membership.--The State Task Force shall include a
representative of a State agency, an institution of higher education
(including an associate or a baccalaureate degree granting institution
of higher education), an early childhood education program, a nonprofit
early childhood organization, a statewide early childhood workforce
scholarship or supplemental initiative, the State Head Start
collaboration director, and any other entity or individual the Governor
determines appropriate.
``SEC. 815. [NOTE: 20 USC 1161i-4.] STATE TASK FORCE ACTIVITIES.

``(a) Activities.--The State Task Force shall--
``(1) coordinate and communicate regularly with the State
Advisory Council on Early Care and Education (hereafter in this
part referred to as `State Advisory Council') or a similar State
entity charged with creating a comprehensive system

[[Page 3399]]
122 STAT. 3399

of early care and education in the State, for the purposes of--
``(A) integrating recommendations for early
childhood professional development and career activities
into the plans of the State Advisory Council; and
``(B) assisting in the implementation of
professional development and career activities that are
consistent with the plans described in subparagraph (A);
``(2) conduct a review of opportunities for and barriers to
high-quality professional development, training, and higher
education degree programs, in early childhood development and
learning, including a periodic statewide survey concerning the
demographics of individuals working in early childhood education
programs in the State, which survey shall include information
disaggregated by--
``(A) race, gender, and ethnicity;
``(B) compensation levels;
``(C) type of early childhood education program
setting;
``(D) specialized knowledge of child development;
``(E) years of experience in an early childhood
education program;
``(F) attainment of--
``(i) academic credit for coursework;
``(ii) an academic degree;
``(iii) a credential;
``(iv) licensure; or
``(v) certification in early childhood
education; and
``(G) specialized knowledge in the education of
children with limited English proficiency and students
with disabilities; and
``(3) develop [NOTE: Plans.] a plan for a comprehensive
statewide professional development and career system for
individuals working in early childhood education programs or for
early childhood education providers, which plan may include--
``(A) methods of providing outreach to early
childhood education program staff, directors, and
administrators, including methods for how outreach is
provided to non-English speaking providers, in order to
enable the providers to be aware of opportunities and
resources under the statewide plan;
``(B) developing a unified data collection and
dissemination system for early childhood education
training, professional development, and higher education
programs;
``(C) increasing the participation of early
childhood educators in high-quality training and
professional development by assisting in paying the
costs of enrollment in and completion of such training
and professional development courses;
``(D) increasing the participation of early
childhood educators in undergraduate and graduate
education programs leading to degrees in early childhood
education by providing assistance to pay the costs of
enrollment in and completion of such programs, which
assistance--
``(i) shall only be provided to an individual
who--
``(I) in the case of an individual
pursuing an undergraduate or graduate
degree, enters into an agreement under
which the individual agrees to

[[Page 3400]]
122 STAT. 3400

work, for a reasonable number of years
after receiving such a degree, in an
early childhood education program that
is located in a low-income area; and
``(II) has a family income equal to
or less than the annually adjusted
national median family income as
determined by the Bureau of the Census;
and
``(ii) shall be provided in an amount that
does not exceed $17,500;
``(E) supporting professional development activities
and a career lattice for a variety of early childhood
professional roles with varying professional
qualifications and responsibilities for early childhood
education personnel, including strategies to enhance the
compensation of such personnel;
``(F) supporting articulation agreements between
two- and four-year public and private institutions of
higher education and mechanisms to transform other
training, professional development, and experience into
academic credit;
``(G) developing mentoring and coaching programs to
support new educators in and directors of early
childhood education programs;
``(H) providing career development advising with
respect to the field of early childhood education,
including informing an individual regarding--
``(i) entry into and continuing education
requirements for professional roles in the field;
``(ii) available financial assistance for
postsecondary education; and
``(iii) professional development and career
advancement in the field;
``(I) enhancing the capacity and quality of faculty
and coursework in postsecondary programs that lead to an
associate, baccalaureate, or graduate degree in early
childhood education;
``(J) consideration of the availability of on-line
graduate level professional development offered by
institutions of higher education with experience and
demonstrated expertise in establishing programs in child
development, in order to improve the skills and
expertise of individuals working in early childhood
education programs; and
``(K) developing or enhancing a system of quality
assurance with respect to the early childhood education
professional development and career system, including
standards or qualifications for individuals and entities
who offer training and professional development in early
childhood education.

``(b) Public Hearings.--The State Task Force shall hold public
hearings and provide an opportunity for public comment on the activities
described in the statewide plan described in subsection (a)(3).
``(c) Periodic Review.--The State Task Force shall meet periodically
to review implementation of the statewide plan and to recommend any
changes to the statewide plan the State Task Force determines necessary.

[[Page 3401]]
122 STAT. 3401

``SEC. 816. [NOTE: 20 USC 1161i-5.] STATE APPLICATION AND
REPORT.

``(a) In General.--Each State desiring a grant 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 reasonably require.
Each such application shall include a description of--
``(1) the membership of the State Task Force;
``(2) the activities for which the grant assistance will be
used;
``(3) other Federal, State, local, and private resources
that will be available to support the activities of the State
Task Force described in section 815;
``(4) the availability within the State of training, early
childhood educator preparation, professional development,
compensation initiatives, and career systems, related to early
childhood education; and
``(5) the resources available within the State for such
training, educator preparation, professional development,
compensation initiatives, and career systems.

``(b) Report to the Secretary.--Not later than two years after
receiving a grant under this part, a State shall submit a report to the
Secretary that shall describe--
``(1) other Federal, State, local, and private resources
that will be used in combination with a grant under this section
to develop or expand the State's early childhood education
professional development and career activities;
``(2) the ways in which the State Advisory Council (or
similar State entity) will coordinate the various State and
local activities that support the early childhood education
professional development and career system; and
``(3) the ways in which the State Task Force will use funds
provided under this part and carry out the activities described
in section 815.
``SEC. 817. [NOTE: 20 USC 1161i-6.] EVALUATIONS.

``(a) State Evaluation.--Each State receiving a grant under this
part shall--
``(1) evaluate the activities that are assisted under this
part in order to determine--
``(A) the effectiveness of the activities in
achieving State goals;
``(B) the impact of a career lattice for individuals
working in early childhood education programs;
``(C) the impact of the activities on licensing or
regulating requirements for individuals in the field of
early childhood development;
``(D) the impact of the activities, and the impact
of the statewide plan described in section 815(a)(3), on
the quality of education, professional development, and
training related to early childhood education programs
that are offered in the State;
``(E) the change in compensation and retention of
individuals working in early childhood education
programs within the State resulting from the activities;
and
``(F) the impact of the activities on the
demographic characteristics of individuals working in
early childhood education programs; and

[[Page 3402]]
122 STAT. 3402

``(2) submit [NOTE: Reports.] a report at the end of the
grant period to the Secretary regarding the evaluation described
in paragraph (1).

``(b) Secretary's Evaluation.-- [NOTE: Deadline.] Not later than
September 30, 2013, the Secretary, in consultation with the Secretary of
Health and Human Services, shall prepare and submit to the authorizing
committees an evaluation of the State reports submitted under subsection
(a)(2).
``SEC. 818. [NOTE: 20 USC 1161i-7.] AUTHORIZATION OF
APPROPRIATIONS.

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

``PART J--IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS
EDUCATION WITH A FOCUS ON ALASKA NATIVE AND NATIVE HAWAIIAN STUDENTS

``SEC. 819. [NOTE: 20 USC 1161j.] IMPROVING SCIENCE, TECHNOLOGY,
ENGINEERING, AND MATHEMATICS EDUCATION
WITH A FOCUS ON ALASKA NATIVE AND NATIVE
HAWAIIAN STUDENTS.

``(a) Purpose.--The purposes of this section are--
``(1) to develop or expand programs for the development of
professionals in the fields of science, technology, engineering,
and mathematics; and
``(2) to focus resources on meeting the educational and
cultural needs of Alaska Natives and Native Hawaiians.

``(b) Definitions.--In this section:
``(1) Alaska native.--The term `Alaska Native' has the
meaning given such term in section 7306 of the Elementary and
Secondary Education Act of 1965.
``(2) Eligible partnership.--The term `eligible partnership'
means a partnership that includes--
``(A) one or more colleges, schools, or departments
of engineering;
``(B) one or more colleges of science or
mathematics;
``(C) one or more institutions of higher education
that offer two-year degrees; and
``(D) one or more private entities that--
``(i) conduct career awareness activities
showcasing local technology professionals;
``(ii) encourage students to pursue education
in science, technology, engineering, and
mathematics from elementary school through
postsecondary education, and careers in those
fields, with the assistance of local technology
professionals;
``(iii) develop internships, apprenticeships,
and mentoring programs in partnership with
relevant industries; and
``(iv) assist with placement of interns and
apprentices.
``(3) Institution of higher education.--The term
`institution of higher education' has the meaning given such
term in section 101(a)

[[Page 3403]]
122 STAT. 3403

``(4) Native hawaiian.--The term `Native Hawaiian' has the
meaning given the term in section 7207 of the Elementary and
Secondary Education Act of 1965.

``(c) Grant Authorized.--From the amounts appropriated to carry out
this section under subsection (i), the Secretary is authorized to award
a grant to an eligible partnership to enable the eligible partnership to
expand programs for the development of science, technology, engineering,
or mathematics professionals, from elementary school through
postsecondary education, including existing programs for Alaska Native
and Native Hawaiian students.
``(d) Uses of Funds.--Grant funds under this section shall be used
for one or more of the following:
``(1) Development or implementation of cultural, social, or
educational transition programs to assist students to transition
into college life and academics in order to increase such
students' retention rates in the fields of science, technology,
engineering, or mathematics, with a focus on Alaska Native or
Native Hawaiian students.
``(2) Development or implementation of academic support or
supplemental educational programs to increase the graduation
rates of students in the fields of science, technology,
engineering, or mathematics, with a focus on Alaska Native and
Native Hawaiian students.
``(3) Development or implementation of internship programs,
carried out in coordination with educational institutions and
private entities, to prepare students for careers in the fields
of science, technology, engineering, or mathematics, with a
focus on programs that serve Alaska Native or Native Hawaiian
students.
``(4) Such other activities as are consistent with the
purpose of this section.

``(e) Application.--Each eligible partnership 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.
``(f) Priority.--In awarding grants under this section, the
Secretary shall give priority to an eligible partnership that, on the
day before the date of enactment of the Higher Education Opportunity
Act, provides one or more programs in which 30 percent or more of the
program participants are Alaska Native or Native Hawaiian.
``(g) Period of Grant.--A grant under this section shall be awarded
for a period of five years.
``(h) Evaluation and Report.--Each eligible partnership that
receives a grant under this section shall conduct an evaluation to
determine the effectiveness of the programs funded under the grant and
shall provide a report regarding the evaluation to the Secretary not
later than six months after the end of the grant period.
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

[[Page 3404]]
122 STAT. 3404

``PART K--PILOT PROGRAMS TO INCREASE COLLEGE PERSISTENCE AND SUCCESS

``SEC. 820. [NOTE: 20 USC 1161k.] PILOT PROGRAMS TO INCREASE
COLLEGE PERSISTENCE AND SUCCESS.

``(a) Grants [NOTE: Disadvantaged persons.] Authorized.--From the
amounts appropriated under subsection (i), the Secretary is authorized
to award grants in accordance with this section, on a competitive basis,
to eligible institutions to enable the institutions to develop programs
to increase the persistence and success of low-income college students.

``(b) Applications.--
``(1) In general.--An eligible institution seeking a grant
under this section shall submit an application to the Secretary
at such time, in such manner, and containing such information as
the Secretary may require. An eligible institution may submit an
application to receive a grant under subsection (c) or (d) or
both.
``(2) Evaluation condition.--Each eligible institution
seeking a grant under this section shall agree to participate in
the evaluation described in subsection (f).
``(3) Priority [NOTE: Disadvantaged persons.] for
replication of evidence-based policies and practices.--In
awarding grants for the program under subsection (d), the
Secretary shall give priority to applications submitted by
eligible institutions that propose to replicate policies and
practices that have proven effective in increasing persistence
and degree completion by low-income students or students in need
of developmental education.

``(c) Pilot Program To Increase Persistence and Success in Community
Colleges.--
``(1) Definitions.--In this subsection:
``(A) Eligible institution.--The term `eligible
institution' means an institution of higher education,
as defined in section 101, that provides a one- or two-
year program of study leading to a degree or
certificate.
``(B) Eligible student.--The term `eligible student'
means a student who--
``(i) is eligible to receive assistance under
section 401;
``(ii) is enrolled at least half-time;
``(iii) is not younger than age 19;
``(iv) is the parent of at least one dependent
child, which dependent child is age 18 or younger;
``(v) has a secondary school diploma or its
recognized equivalent; and
``(vi) does not have a degree or certificate
from an institution of higher education.
``(2) Uses of funds.--
``(A) Support.-- [NOTE: Grants.] The Secretary
shall award grants under this subsection to eligible
institutions to enable such institutions to provide
additional monetary and nonmonetary support to eligible
students to enable the eligible students to maintain
enrollment and complete degree or certificate programs.
``(B) Required uses.--Each eligible institution
receiving a grant under this subsection shall use the
grant funds--

[[Page 3405]]
122 STAT. 3405

``(i) to provide scholarships in accordance
with paragraph (3); and
``(ii) to provide counseling services in
accordance with paragraph (4) .
``(C) Allowable uses of funds.--Grant funds provided
under this subsection may be used--
``(i) to conduct outreach to make students
aware of the scholarships and counseling services
available under this subsection and to encourage
the students to participate in the program
assisted under this subsection; and
``(ii) to provide incentives of $20 or less to
applicants who complete the process of applying
for assistance under this subsection, as
compensation for the student's time.
``(3) Scholarship requirements.--
``(A) In general.--Each scholarship awarded under
this subsection shall--
``(i) be awarded for one academic year
consisting of two semesters or the equivalent;
``(ii) require the student to maintain, during
the scholarship period, at least half-time
enrollment and at least a 2.0 grade point average
or the equivalent;
``(iii) be awarded in the amount of $1,000 for
each of two semesters (prorated for quarters or
other equivalents), or $2,000 for an academic
year;
``(iv) not exceed the student's cost of
attendance, as defined in section 472; and
``(v) be paid, for each of the two semesters,
in increments of--
``(I) $250 upon enrollment (prorated
for quarters or other equivalents);
``(II) $250 upon passing midterm
examinations or comparable assessments
(prorated for quarters or other
equivalents); and
``(III) $500 upon passing courses
(prorated for quarters or other
equivalents).
``(B) Number.--An eligible institution may award an
eligible student not more than two scholarships under
this subsection.
``(4) Counseling services.--
``(A) In general.--Each eligible institution
receiving a grant under this subsection shall use the
grant funds to provide students at the institution with
a counseling staff dedicated to students participating
in the program under this subsection. Each such
counselor shall--
``(i) have a caseload of less than 125
students;
``(ii) use a proactive, team-oriented approach
to counseling;
``(iii) hold a minimum of two meetings with
each student each semester; and
``(iv) provide referrals to and follow-up with
other student services staff, including financial
aid and career services.
``(B) Counseling services availability.--The
counseling services provided under this subsection shall
be

[[Page 3406]]
122 STAT. 3406

available to participating students during the daytime
and evening hours.

``(d) Student Success Grant Pilot Program.--
``(1) Definitions.--
``(A) Eligible institution.--In this subsection, the
term `eligible institution' means an institution of
higher education in which, during the three-year period
preceding the year in which the institution is applying
for a grant under this subsection, an average of not
less than 50 percent of the institution's entering
first-year students are assessed as needing
developmental courses to bring reading, writing, or
mathematics skills up to college level.
``(B) Eligible student.--In this subsection, the
term `eligible student' means a student who--
``(i) is eligible to receive assistance under
section 401;
``(ii) is a first-year student at the time of
entering the program;
``(iii) is assessed as needing developmental
education to bring reading, writing, or
mathematics skills up to college level; and
``(iv) is selected by an eligible institution
to participate in the program.
``(2) Student success grant amount.--The Secretary shall
award grants under this subsection to eligible institutions in
an amount equal to $1,500 multiplied by the number of students
the institution selects to participate in the program in such
year. An institution shall not select more than 200 students to
participate in the program under this subsection during such
year.
``(3) Required uses.--An eligible institution that receives
a grant under this subsection shall use the grant funds to
assign a student success coach to each first-year student
participating in the program to provide intensive career and
academic advising, ongoing personal help in navigating college
services (such as financial aid and registration), and
assistance in connecting to community resources that can help
students overcome family and personal challenges to success.
Student success coaches--
``(A) shall work with not more than 50 new students
during any academic period;
``(B) may be employees of academic departments,
student services offices, community-based organizations,
or other entities as determined appropriate by the
institution; and
``(C) shall meet with each eligible student selected
for the program before registration for courses.
``(4) Allowable uses.--An eligible institution that receives
a grant under this subsection may use the grant funds to provide
services and program innovations for students participating in
the program, including the following:
``(A) College and career success courses provided at
no charge to participating students. These courses may
cover college success topics, including how to take
notes, how to study, how to take tests, and how to
budget time, and may also include a substantial career
exploration

[[Page 3407]]
122 STAT. 3407

component. Institutions may use such courses to help
students develop a college and career success plan, so
that by the end of the first semester the students have
a clear sense of their career goals and what classes to
take to achieve such goals.
``(B) Work-study jobs with private employers in the
students' fields of study.
``(C) Learning communities that ensure that students
participating in the program are clustered together for
at least two courses beginning in the first semester
after enrolling and have other opportunities to create
and maintain bonds that allow them to provide academic
and social support to each other.
``(D) Curricular redesign, which may include such
innovations as blended or accelerated remediation
classes that help student success grant recipients to
attain college-level reading, writing, or math skills
(or a combination thereof) more rapidly than traditional
remediation formats allow, and intensive skills
refresher classes, offered prior to each semester, to
help students who have tested into remedial coursework
to reach entry level assessment scores for the
postsecondary programs they wish to enter.
``(E) Instructional support, such as learning labs,
supplemental instruction, and tutoring.
``(F) Assistance with support services, such as
child care and transportation.
``(5) Required non-federal share.--Each institution
participating in the program under this subsection shall provide
a non-Federal share of 25 percent of the amount of grant to
carry out the activities of the program. The non-Federal share
under this subsection may be provided in cash or in kind.

``(e) Period of Grant.--The Secretary may award a grant under
subsection (c) or (d) of this section for a period of five years.
``(f) Technical Assistance and Evaluation.--
``(1) Contractor.-- [NOTE: Contracts.] From the funds
appropriated under this section, the Secretary shall enter into
a contract with one or more private, nonprofit entities to
provide technical assistance to grantees and to conduct the
evaluations required under paragraph (3).
``(2) Evaluations.--The evaluations required under paragraph
(3) shall be conducted by entities that are capable of designing
and carrying out independent evaluations that identify the
impact of the activities carried out by eligible institutions
under this subpart on improving persistence and success of
student participants under this subpart.
``(3) Conduct of evaluations.--The Secretary shall conduct
an evaluation of the impact of the persistence and success grant
programs as follows:
``(A) Program to increase persistence in community
colleges.--The evaluation of the program under
subsection (c) shall be conducted using a random
assignment research design with the following
requirements:
``(i) When students are recruited for the
program, all students will be told about the
program and the evaluation.

[[Page 3408]]
122 STAT. 3408

``(ii) Baseline data will be collected from
all applicants for assistance under subsection
(c).
``(iii) Students will be assigned randomly to
two groups, which will consist of--
``(I) a program group that will
receive the scholarship and the
additional counseling services; and
``(II) a control group that will
receive whatever regular financial aid
and counseling services are available to
all students at the institution of
higher education.
``(B)
Student [NOTE: Demographics. Statistics.] success
grant program.--Eligible institutions receiving a grant
to carry out the program under subsection (d) shall work
with the evaluator to track persistence and completion
outcomes for students in such program, specifically the
proportion of these students who take and complete
developmental education courses, the proportion who take
and complete college-level coursework, and the
proportion who complete certificates and degrees. The
data shall be broken down by gender, race, ethnicity,
and age and the evaluator shall assist institutions in
analyzing these data to compare program participants to
comparable nonparticipants, using statistical techniques
to control for differences in the groups.

``(g) Report.--The Secretary shall--
``(1) provide a report to the authorizing committees that
includes the evaluation and information on best practices and
lessons learned during the pilot programs described in this
section; and
``(2) [NOTE: Web site.] disseminate the report to the
public by making the report available on the Department's
website.

``(h) Supplement Not Supplant.--Funds made available under this
section shall be use to supplement and not supplant other Federal,
State, and local funds available to the institution to carrying out the
activities described in subsections (c) and (d).
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years. The
Secretary may use not more than two percent of the amounts appropriated
to provide the technical assistance and conduct the evaluations required
under subsection (f).

``PART L-- [NOTE: Grants.] STUDENT SAFETY AND CAMPUS EMERGENCY
MANAGEMENT
``SEC. 821. [NOTE: 20 USC 1161l.] STUDENT SAFETY AND CAMPUS
EMERGENCY MANAGEMENT.

``(a) Grants Authorized.--
``(1) In general.--From the amounts appropriated under
subsection (g), the Secretary is authorized to award grants, on
a competitive basis, to institutions of higher education or
consortia of institutions of higher education to enable
institutions of higher education or consortia to pay the Federal
share of the cost of carrying out the authorized activities
described in subsection (c).
``(2) Consultation with the attorney general and the
secretary of homeland security.--Where appropriate, the
Secretary shall award grants under this section in consultation

[[Page 3409]]
122 STAT. 3409

with the Attorney General and the Secretary of Homeland
Security.
``(3) Duration.--The Secretary shall award each grant under
this section for a period of two years.
``(4) Limitation on institutions and consortia.--An
institution of higher education or consortium shall be eligible
for only one grant under this section.

``(b) Federal Share; Non-Federal Share.--
``(1) In general.--The Federal share of the activities
described in subsection (c) shall be 50 percent.
``(2) Non-federal share.--An institution of higher education
or consortium that receives a grant under this section shall
provide the non-Federal share, which may be provided from State
and local resources dedicated to emergency preparedness and
response.

``(c) Authorized Activities.--Each institution of higher education
or consortium receiving a grant under this section may use the grant
funds to carry out one or more of the following:
``(1) Developing [NOTE: Procedures.] and implementing a
state-of-the-art emergency communications system for each campus
of an institution of higher education or consortium, in order to
contact students via cellular, text message, or other state-of-
the-art communications methods when a significant emergency or
dangerous situation occurs. An institution or consortium using
grant funds to carry out this paragraph shall also, in
coordination with the appropriate State and local emergency
management authorities--
``(A) develop procedures that students, employees,
and others on a campus of an institution of higher
education or consortium will be directed to follow in
the event of a significant emergency or dangerous
situation; and
``(B) develop procedures the institution of higher
education or consortium shall follow to inform, within a
reasonable and timely manner, students, employees, and
others on a campus in the event of a significant
emergency or dangerous situation, which procedures shall
include the emergency communications system described in
this paragraph.
``(2) Supporting measures to improve safety at the
institution of higher education or consortium, such as--
``(A) security assessments;
``(B) security training of personnel and students at
the institution of higher education or consortium;
``(C) where appropriate, coordination of campus
preparedness and response efforts with local law
enforcement, local emergency management authorities, and
other agencies, to improve coordinated responses in
emergencies among such entities;
``(D) establishing a hotline that allows a student
or staff member at an institution or consortium to
report another student or staff member at the
institution or consortium who the reporting student or
staff member believes may be a danger to the reported
student or staff member or to others; and
``(E) acquisition and installation of access
control, video surveillance, intrusion detection, and
perimeter security technologies and systems.

[[Page 3410]]
122 STAT. 3410

``(3) Coordinating with appropriate local entities for the
provision of mental health services for students and staff of
the institution of higher education or consortium, including
mental health crisis response and intervention services for
students and staff affected by a campus or community emergency.

``(d) Application.--Each institution of higher education or
consortium desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
``(e) Technical Assistance.--The Secretary shall coordinate
technical assistance provided by State and local emergency management
agencies, the Department of Homeland Security, and other agencies as
appropriate, to institutions of higher education or consortia that
request assistance in developing and implementing the activities
assisted under this section.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this part such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.
``SEC. 822. MODEL [NOTE: 20 USC 1161l-1.] EMERGENCY RESPONSE
POLICIES, PROCEDURES, AND PRACTICES.

``The Secretary, in consultation with the Attorney General and the
Secretary of Homeland Security, shall continue to--
``(1) advise institutions of higher education on model
emergency response policies, procedures, and practices; and
``(2) disseminate [NOTE: Public information.] information
concerning those policies, procedures, and practices.
``SEC. 823. [NOTE: 20 USC 1161l-2.] PREPARATION FOR FUTURE
DISASTERS PLAN BY THE SECRETARY.

``The Secretary shall continue to coordinate with the Secretary of
Homeland Security and other appropriate agencies to develop and maintain
procedures to address the preparedness, response, and recovery needs of
institutions of higher education in the event of a natural or manmade
disaster with respect to which the President has declared a major
disaster or emergency (as such terms are defined in section 824).
``SEC. 824. [NOTE: 20 USC 1161l-3.] EDUCATION DISASTER AND
EMERGENCY RELIEF LOAN PROGRAM.

``(a) Program Authorized.--The Secretary, in consultation with the
Secretary of Homeland Security, is authorized to establish an Education
Disaster and Emergency Relief Loan Program for institutions of higher
education impacted by a major disaster or emergency declared by the
President.
``(b) Use of Assistance.--The Secretary shall, subject to the
availability of appropriations, provide loans under this section to
institutions of higher education after the declaration of a major
disaster or emergency by the President. Loan funds provided under this
section may be used for construction, replacement, renovation, and
operations costs resulting from a major disaster or emergency declared
by the President.
``(c) Application Requirements.--To be considered for a loan under
this section, an institution of higher education shall--
``(1) submit a financial statement and other appropriate
data, documentation, or evidence requested by the Secretary that
indicates that the institution incurred losses resulting

[[Page 3411]]
122 STAT. 3411

from the impact of a major disaster or emergency declared by the
President, and the monetary amount of such losses;
``(2) demonstrate that the institution had appropriate
insurance policies prior to the major disaster or emergency and
filed claims, as appropriate, related to the major disaster or
emergency; and
``(3) demonstrate that the institution attempted to minimize
the cost of any losses by pursuing collateral source
compensation from the Federal Emergency Management Agency prior
to seeking a loan under this section, except that an institution
of higher education shall not be required to receive collateral
source compensation from the Federal Emergency Management Agency
prior to being eligible for a loan under this section.

``(d) Audit.--The Secretary may audit a financial statement
submitted under subsection (c) and an institution of higher education
shall provide any information that the Secretary determines necessary to
conduct such an audit.
``(e) Reduction in Loan Amounts.--To determine the amount of a loan
to make available to an institution of higher education under this
section, the Secretary shall calculate the monetary amount of losses
incurred by such institution as a result of a major disaster or
emergency declared by the President, and shall reduce such amount by the
amount of collateral source compensation the institution has already
received from insurance, the Federal Emergency Management Agency, and
the Small Business Administration.
``(f) Establishment of Loan Program.-- [NOTE: Regulations.] Prior
to disbursing any loans under this section, the Secretary shall
prescribe regulations that establish the Education Disaster and
Emergency Relief Loan Program, including--
``(1) terms for the loan program;
``(2) procedures for an application for a loan;
``(3) minimum requirements for the loan program and for
receiving a loan, including--
``(A) online forms to be used in submitting request
for a loan;
``(B) information to be included in such forms; and
``(C) procedures to assist in filing and pursing a
loan; and
``(4) any other terms and conditions the Secretary may
prescribe after taking into consideration the structure of other
existing capital financing loan programs under this Act.

``(g) Definitions.--In this section:
``(1) Institution affected by a gulf hurricane disaster.--
The term `institution affected by a Gulf hurricane disaster'
means an institution of higher education that--
``(A) is located in an area affected by a Gulf
hurricane disaster; and
``(B) is able to demonstrate that the institution--
``(i) incurred physical damage resulting from
the impact of a Gulf hurricane disaster; and
``(ii) was not able to fully reopen in
existing facilities or to fully reopen to the pre-
hurricane levels for 30 days or more on or after
August 29, 2005.
``(2) Area affected by a gulf hurricane disaster; gulf
hurricane disaster.--The terms `area affected by a Gulf
hurricane disaster' and `Gulf hurricane disaster' have the
meanings

[[Page 3412]]
122 STAT. 3412

given such terms in section 209 of the Higher Education
Hurricane Relief Act of 2005 (Public Law 109-148, 119 Stat.
2808).
``(3) Emergency.--The term `emergency' has the meaning given
such term in section 102(1) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5122(1)).
``(4) Institutions of higher education.--The term
`institution of higher education' has the meaning given such
term in section 101.
``(5) Major disaster.--The term `major disaster' has the
meaning given the term in section 102(2) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5122(2)).

``(h) Effective Date.--Loans provided to institutions of higher
education pursuant to this section shall be available only with respect
to major disasters or emergencies declared by the President that occur
after the date of the enactment of the Higher Education Opportunity Act,
except that loans may be provided pursuant to this section to an
institution affected by a Gulf hurricane disaster with respect to such
disaster.
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.
``SEC. 825. [NOTE: Records. 20 USC 1161l-4.] GUIDANCE ON MENTAL
HEALTH DISCLOSURES FOR STUDENT SAFETY.

``(a) Guidance.--The Secretary shall continue to provide guidance
that clarifies the role of institutions of higher education with respect
to the disclosure of education records, including to a parent or legal
guardian of a dependent student, in the event that such student
demonstrates that the student poses a significant risk of harm to
himself or herself or to others, including a significant risk of
suicide, homicide, or assault. Such guidance shall further clarify that
an institution of higher education that, in good faith, discloses
education records or other information in accordance with the
requirements of this Act and section 444 of the General Education
Provisions Act (the Family Educational Rights and Privacy Act of 1974)
shall not be liable to any person for that disclosure.
``(b) Information to Congress.-- [NOTE: Deadline.] The Secretary
shall provide an update to the authorizing committees on the Secretary's
activities under subsection (a) not later than 180 days after the date
of enactment of the Higher Education Opportunity Act.
``SEC. 826. [NOTE: 20 USC 1161l-5.] RULE OF CONSTRUCTION.

``Nothing in this part shall be construed--
``(1) to provide a private right of action to any person to
enforce any provision of this section;
``(2) to create a cause of action against any institution of
higher education or any employee of the institution for any
civil liability; or
``(3) to affect section 444 of the General Education
Provisions Act (the Family Educational Rights and Privacy Act of
1974) or the regulations issued under section 264 of the Health
Insurance Portability and Accountability Act of 1996 (42 U.S.C.
1320d-2 note).

[[Page 3413]]
122 STAT. 3413

``PART M--LOW TUITION

``SEC. 830. [NOTE: 20 USC 1161m.] INCENTIVES AND REWARDS FOR LOW
TUITION.

``(a) Rewards for Low Tuition.--
``(1) Grants.--From funds made available under subsection
(e), the Secretary shall award grants to institutions of higher
education that, for academic year 2009-2010 or any succeeding
academic year--
``(A) have an annual tuition and fee increase,
expressed as a percentage change, for the most recent
academic year for which satisfactory data is available,
that is in the lowest 20 percent of such increases for
each category described in subsection (b);
``(B) are public institutions of higher education
that have tuition and fees that are in the lowest
quartile of for institutions in each category described
in subsection (b)(1), (b)(4), or (b)(7); or
``(C) are public institutions of higher education
that have a tuition and fee increase of less than $600
for a first-time, full-time undergraduate student.
``(2) Use of funds.--Funds awarded to an institution of
higher education under paragraph (1) shall be distributed by the
institution in the form of need-based grant aid to students who
are eligible for Federal Pell Grants, except that no student
shall receive an amount under this section that would cause the
amount of total financial aid received by such student to exceed
the cost of attendance of the institution.

``(b) Categories of Institutions.--The categories of institutions
described in subsection (a) shall be the following:
``(1) four-year public institutions of higher education;
``(2) four-year private, nonprofit institutions of higher
education;
``(3) four-year private, for-profit institutions of higher
education;
``(4) two-year public institutions of higher education;
``(5) two-year private, nonprofit institutions of higher
education;
``(6) two-year private, for-profit institutions of higher
education;
``(7) less than two-year public institutions of higher
education;
``(8) less than two-year private, nonprofit institutions of
higher education; and
``(9) less than two-year private, for-profit institutions of
higher education.

``(c) Rewards for Guaranteed Tuition.--
``(1) Bonus.-- [NOTE: Disadvantaged persons.] For each
institution of higher education that the Secretary determines
complies with the requirements of paragraph (2) or (3) of this
subsection, the Secretary shall provide to such institution a
bonus amount. Such institution shall award the bonus amount in
the form of need-based aid first to students who are eligible
for Federal Pell Grants who were in attendance at the
institution during the award year that such institution
satisfied the eligibility criteria for maintaining low tuition
and fees, then to students who are eligible for Federal Pell
Grants who were not in attendance at the institution during such
award year.

[[Page 3414]]
122 STAT. 3414

``(2) Four-year institutions.--An institution of higher
education that provides a program of instruction for which it
awards a bachelor's degree complies with the requirements of
this paragraph if--
``(A) for a public institution of higher education,
such institution's tuition and fees are in the lowest
quartile of institutions in the same category as
described under subsection (b); or
``(B) for any institution of higher education, such
institution guarantees that for any academic year (or
the equivalent) beginning on or after July 1, 2009, and
for each of the four succeeding continuous academic
years, the tuition and fees charged to an undergraduate
student will not exceed--
``(i) for a public institution of higher
education, $600 per year for a full-time
undergraduate student; or
``(ii) for any other institution of higher
education--
``(I) the amount that the student
was charged for an academic year at the
time the student first enrolled in the
institution of higher education, plus
``(II) the percentage change in
tuition and fees at the institution for
the three most recent academic years for
which data is available, multiplied by
the amount determined under subclause
(I).
``(3) Less-than four-year institutions.--An institution of
higher education that does not provide a program of instruction
for which it awards a bachelor's degree complies with the
requirements of this paragraph if--
``(A) for a public institution of higher education,
such institution's tuition is in the lowest quartile of
institutions in the same category as described under
subsection (b); or
``(B) for any institution of higher education, such
institution guarantees that for any academic year (or
the equivalent) beginning on or after July 1, 2009, and
for each of the 1.5 succeeding continuous academic
years, the tuition and fees charged to an undergraduate
student will not exceed--
``(i) for a public institution of higher
education, $600 per year for a full-time
undergraduate student; or
``(ii) for any other institution of higher
education--
``(I) the amount that the student
was charged for an academic year at the
time the student first enrolled in the
institution of higher education, plus
``(II) the percentage change in
tuition and fees at the institution for
the three most recent academic years for
which data is available, multiplied by
the amount determined under subclause
(I).

``(d) Definitions.--In this section, the terms `tuition and fees'
and `net price' have the meaning given to such terms in section 132 of
this Act.
``(e) Authorization.--There are authorized to be appropriated to
carry out this section such sums as may be necessary for fiscal year
2009 and each of the five succeeding fiscal years.

[[Page 3415]]
122 STAT. 3415

``PART N--COOPERATIVE EDUCATION

``SEC. 831. [NOTE: 20 USC 1161n.] STATEMENT OF PURPOSE;
DEFINITION.

``(a) Purpose.--It is the purpose of this part to award grants to
institutions of higher education or consortia of such institutions to
encourage such institutions to develop and make available to their
students work experience that will aid such students in future careers
and will enable such students to support themselves financially while in
school.
``(b) Definition.--In this part the term `cooperative education'
means the provision of alternating or parallel periods of academic study
and public or private employment to give students work experiences
related to their academic or occupational objectives and an opportunity
to earn the funds necessary for continuing and completing their
education.
``SEC. 832. [NOTE: 20 USC 1161n-1.] RESERVATIONS.

``(a) Reservations.--Of the amount appropriated to carry out this
part in each fiscal year--
``(1) not less than 50 percent shall be available for
awarding grants to institutions of higher education and
consortia of such institutions described in section 833(a)(1)(A)
for cooperative education under section 833;
``(2) not less than 25 percent shall be available for
awarding grants to institutions of higher education described in
section 833(a)(1)(B) for cooperative education under section
833;
``(3) not to exceed 11 percent shall be available for
demonstration projects under paragraph (1) of section 834(a);
``(4) not to exceed 11 percent shall be available for
training and resource centers under paragraph (2) of section
834(a); and
``(5) not to exceed 3 percent shall be available for
research under paragraph (3) of section 834(a).

``(b) Availability of Appropriations.--Amounts appropriated under
this part shall not be used for the payment of compensation of students
for employment by employers participating in a program under this part.
``SEC. 833. [NOTE: 20 USC 1161n-2.] GRANTS FOR COOPERATIVE
EDUCATION.

``(a) Grants Authorized.--
``(1) In general.--The Secretary is authorized, from the
amount available to carry out this section under section 835 in
each fiscal year and in accordance with the provisions of this
part--
``(A) to award grants to institutions of higher
education or consortia of such institutions that have
not received a grant under this paragraph in the ten-
year period preceding the date for which a grant under
this section is requested to pay the Federal share of
the cost of planning, establishing, expanding, or
carrying out programs of cooperative education by such
institutions or consortia of institutions; and
``(B) to award grants to institutions of higher
education that are operating an existing cooperative
education program as determined by the Secretary to pay
the Federal share of the cost of planning, establishing,
expanding, or

[[Page 3416]]
122 STAT. 3416

carrying out programs of cooperative education by such
institutions.
``(2) Program requirement.--Cooperative education programs
assisted under this section shall provide alternating or
parallel periods of academic study and of public or private
employment, giving students work experience related to their
academic or occupational objectives and the opportunity to earn
the funds necessary for continuing and completing their
education.
``(3) Amount of grants.--
``(A) The amount of each grant awarded pursuant to
paragraph (1)(A) to any institution of higher education
or consortia of such institutions in any fiscal year
shall not exceed $500,000.
``(B)(i) Except as provided in clauses (ii) and
(iii), the Secretary shall award grants in each fiscal
year to each institution of higher education described
in paragraph (1)(B) that has an application approved
under subsection (b) in an amount that bears the same
ratio to the amount reserved pursuant to section
832(a)(2) for such fiscal year as the number of
unduplicated students placed in cooperative education
jobs during the preceding fiscal year by such
institution of higher education (other than cooperative
education jobs under section 834 and as determined by
the Secretary) bears to the total number of all such
students placed in such jobs during the preceding fiscal
year by all such institutions.
``(ii) No institution of higher education shall
receive a grant pursuant to paragraph (1)(B) in any
fiscal year in an amount that exceeds 25 percent of such
institution's cooperative education program's personnel
and operating budget for the preceding fiscal year.
``(iii) The minimum annual grant amount that an
institution of higher education is eligible to receive
under paragraph (1)(B) is $1,000 and the maximum annual
grant amount is $75,000.
``(4) Limitation.--The Secretary shall not award grants
pursuant to subparagraphs (A) and (B) of paragraph (1) to the
same institution of higher education or consortia of such
institution in any one fiscal year.
``(5) Uses.--Grants awarded under paragraph (1)(B) shall be
used exclusively--
``(A) to expand the quality of and participation in
a cooperative education program;
``(B) for outreach to potential participants in new
curricular areas; and
``(C) for outreach to potential participants
including underrepresented and nontraditional
populations.

``(b) Applications.--Each institution of higher education or
consortium of such institutions desiring to receive a grant under this
section shall submit an application to the Secretary at such time and in
such manner as the Secretary shall prescribe. Each such application
shall--
``(1) set forth the program or activities for which a grant
is authorized under this section;
``(2) specify each portion of such program or activities
which will be performed by a nonprofit organization or
institution

[[Page 3417]]
122 STAT. 3417

other than the applicant, and the amount of grant funds to be
used for such program or activities;
``(3) provide that the applicant will expend, during the
fiscal year for which the grant is awarded for the purpose of
such program or activities, not less than the amount expended
for such purpose during the previous fiscal year;
``(4) describe the plans which the applicant will carry out
to assure, and contain a formal statement of the institution's
commitment that assures, that the applicant will continue the
cooperative education program beyond the five-year period of
Federal assistance described in subsection (c)(1) at a level
that is not less than the total amount expended for such program
during the first year such program was assisted under this
section;
``(5) provide that, in the case of an institution of higher
education that provides a two-year program that is acceptable
for full credit toward a bachelor's degree, the cooperative
education program will be available to students who are
certificate or associate degree candidates and who carry at
least one-half of the normal full-time academic workload;
``(6) provide that the applicant will--
``(A) make [NOTE: Reports.] such reports as may be
necessary to ensure that the applicant is complying with
the provisions of this section, including reports for
the second and each succeeding fiscal year for which the
applicant receives a grant with respect to the impact of
the cooperative education program in the previous fiscal
year, including--
``(i) the number of unduplicated student
applicants in the cooperative education program;
``(ii) the number of unduplicated students
placed in cooperative education jobs;
``(iii) the number of employers who have hired
cooperative education students;
``(iv) the income for students derived from
working in cooperative education jobs; and
``(v) the increase or decrease in the number
of unduplicated students placed in cooperative
education jobs in each fiscal year compared to the
previous fiscal year; and
``(B) keep [NOTE: Records.] such records as may be
necessary to ensure that the applicant is complying with
the provisions of this part, including the notation of
cooperative education employment on the student's
transcript;
``(7) describe the extent to which programs in the academic
disciplines for which the application is made have
satisfactorily met the needs of public and private sector
employers;
``(8) describe the extent to which the institution is
committed to extending cooperative education on an institution-
wide basis for all students who can benefit;
``(9) describe the plans that the applicant will carry out
to evaluate the applicant's cooperative education program at the
end of the grant period;
``(10) provide for such fiscal control and fund accounting
procedures as may be necessary to ensure proper disbursement of,
and accounting for, Federal funds paid to the applicant under
this part;

[[Page 3418]]
122 STAT. 3418

``(11) demonstrate a commitment to serving underserved
populations at the institution; and
``(12) include such other information as may be necessary to
carry out the provisions of this part.

``(c) Duration of Grants; Federal Share.--
``(1) Duration of grants.--No individual institution of
higher education may receive, individually or as a participant
in a consortium of such institutions--
``(A) a grant pursuant to subsection (a)(1)(A) for
more than five fiscal years; or
``(B) a grant pursuant to subsection (a)(1)(B) for
more than five fiscal years.
``(2) Federal share.--The Federal share of a grant under
subsection (a)(1)(A) may not exceed--
``(A) 85 percent of the cost of carrying out the
program or activities described in the application in
the first year the applicant receives a grant under this
section;
``(B) 70 percent of such cost in the second such
year;
``(C) 55 percent of such cost in the third such
year;
``(D) 40 percent of such cost in the fourth such
year; and
``(E) 25 percent of such cost in the fifth such
year.
``(3) Special rule.--Notwithstanding any other provision of
law, the Secretary may not waive the provisions of paragraphs
(1) and (2).

``(d) Maintenance of Effort.--If the Secretary determines that a
recipient of funds under this section has failed to maintain the fiscal
effort described in subsection (b)(3), then the Secretary may elect not
to make grant payments under this section to such recipient.
``(e) Factors for Special Consideration of Applications.--
``(1) In general.--In approving applications under this
section, the Secretary shall give special consideration to
applications from institutions of higher education or consortia
of such institutions for programs that show the greatest promise
of success because of--
``(A) the extent to which programs in the academic
discipline with respect to which the application is made
have satisfactorily met the needs of public and private
sector employers;
``(B) the strength of the commitment of the
institution of higher education or consortium of such
institutions to cooperative education as demonstrated by
the plans and formalized institutional commitment
statement which such institution or consortium has made
to continue the program after the termination of Federal
financial assistance;
``(C) the extent to which the institution or
consortium of institutions is committed to extending
cooperative education for students who can benefit; and
``(D) such other factors as are consistent with the
purposes of this section.
``(2) Additional special consideration.--The Secretary shall
also give special consideration to applications from
institutions of higher education or consortia of such
institutions that demonstrate a commitment to serving
underserved populations attending such institutions.

[[Page 3419]]
122 STAT. 3419

``SEC. 834. [NOTE: 20 USC 1161n-3.] DEMONSTRATION AND INNOVATION
PROJECTS; TRAINING AND RESOURCE CENTERS;
AND RESEARCH.

``(a) Authorization.--From the amounts appropriated under section
835, the Secretary is authorized, in accordance with the provisions of
this section, to make grants and enter into contracts--
``(1) from the amounts available in each fiscal year under
section 832(a)(3), for the conduct of demonstration projects
designed to demonstrate or determine the effectiveness of
innovative methods of cooperative education;
``(2) from the amounts available in each fiscal year under
section 832(a)(4), for the conduct of training and resource
centers designed to--
``(A) train personnel in the field of cooperative
education;
``(B) improve materials used in cooperative
education programs if such improvement is conducted in
conjunction with other activities described in this
paragraph;
``(C) provide technical assistance to institutions
of higher education to increase the potential of the
institution to continue to conduct a cooperative
education program without Federal assistance;
``(D) encourage model cooperative education programs
that furnish education and training in occupations in
which there is a national need;
``(E) support partnerships under which an
institution carrying out a comprehensive cooperative
education program joins with one or more institutions of
higher education in order to--
``(i) assist the institution that is not the
institution carrying out the cooperative education
program to develop and expand an existing program
of cooperative education; or
``(ii) establish and improve or expand
comprehensive cooperative education programs; and
``(F) encourage model cooperative education programs
in the fields of science and mathematics for women and
minorities who are underrepresented in such fields; and
``(3) from the amounts available in each fiscal year under
section 832(a)(5), for the conduct of research relating to
cooperative education.

``(b) Administrative Provision.--
``(1) In general.--To carry out this section, the Secretary
may--
``(A) make grants to or contracts with institutions
of higher education or consortia of such institutions;
and
``(B) make grants to or contracts with other public
or private nonprofit agencies or organizations, whenever
such grants or contracts will contribute to the
objectives of this section.
``(2) Limitation.--
``(A) Contracts with institutions of higher
education.--The Secretary may use not more than three
percent of the amount appropriated to carry out this
section in each fiscal year to enter into contracts
described in paragraph (1)(A).
``(B) Contracts with other agencies or
organizations.--The Secretary may use not more than
three percent

[[Page 3420]]
122 STAT. 3420

of the amount appropriated to carry out this section in
each fiscal year to enter into contracts described in
paragraph (1)(B).

``(c) Supplement Not Supplant.--A recipient of a grant or contract
under this section may use the funds provided only to supplement funds
made available from non-Federal sources to carry out the activities
supported by such grant or contract, and in no case to supplant such
funds from non-Federal sources.
``SEC. 835. [NOTE: 20 USC 1161n-4.] AUTHORIZATION OF
APPROPRIATIONS.

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

``PART O--COLLEGE PARTNERSHIP GRANTS

``SEC. 841. [NOTE: 20 USC 1161o.] COLLEGE PARTNERSHIP GRANTS
AUTHORIZED.

``(a) Grants Authorized.--From the amount appropriated to carry out
this section, the Secretary shall award grants to eligible partnerships
for the purposes of developing and implementing articulation agreements.
``(b) Eligible Partnerships.--For purposes of this part, an eligible
partnership shall include at least two institutions of higher education,
or a system of institutions of higher education, and may include either
or both of the following:
``(1) A consortia of institutions of higher education.
``(2) A State higher education agency.

``(c) Priority.--The Secretary shall give priority to eligible
partnerships that--
``(1) are located in a State that has employed strategies
described in section 486A(d); or
``(2) include--
``(A) one or more junior or community colleges (as
defined by section 312(f)) that award associate's
degrees; and
``(B) one or more institutions of higher education
that offer a baccalaureate or post-baccalaureate degree
not awarded by the institutions described in
subparagraph (A) with which it is partnered.

``(d) Mandatory Use of Funds.--Grants awarded under this part shall
be used for--
``(1) the development of policies and programs to expand
opportunities for students to earn bachelor's degrees, by
facilitating the transfer of academic credits between
institutions and expanding articulation and guaranteed transfer
agreements between institutions of higher education, including
through common course numbering and general education core
curriculum;
``(2) academic program enhancements; and
``(3) programs to identify and remove barriers that inhibit
student transfers, including technological and informational
programs.

``(e) Optional Use of Funds.--Grants awarded under this part may be
used for--
``(1) support services to students participating in the
program, such as tutoring, mentoring, and academic and personal
counseling; and

[[Page 3421]]
122 STAT. 3421

``(2) any service that facilitates the transition of
students between the partner institutions.

``(f) Prohibition.--No funds provided under this section shall be
used to financially compensate an institution for the purposes of
entering into an articulation agreement or for accepting students
transferring into such institution.
``(g) Applications.--Any eligible partnership that desires to obtain
a grant under this section shall submit to the Secretary an application
at such time, in such manner, and containing such information or
assurances as the Secretary may require.
``(h) Definition.--For purposes of this section, the term
`articulation agreement' means an agreement between institutions of
higher education that specifies the acceptability of courses in transfer
toward meeting specific degree requirements.
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART P--JOBS TO CAREERS

``SEC. 851. [NOTE: 20 USC 1161p.] GRANTS TO CREATE BRIDGES FROM
JOBS TO CAREERS.

``(a) Purpose.--The purpose of this section is to provide grants on
a competitive basis to institutions of higher education for the purpose
of improving developmental education to help students move more rapidly
into for-credit occupational courses and into better jobs that may
require a certificate or degree.
``(b) Authorization of Program.-- [NOTE: Grants.] From amounts
appropriated to carry out this section, the Secretary shall award
grants, on a competitive basis, to institutions of higher education, as
defined in section 101(a), to create workforce bridge programs between
developmental courses and for-credit courses in occupational certificate
programs that are articulated to degree programs. Such workforce bridge
programs shall focus on--
``(1) improving developmental education, including English
language instruction, by customizing developmental education to
student career goals; and
``(2) helping students move rapidly from developmental
coursework into for-credit occupational courses and through
program completion.

``(c) Application.--An institution of higher education desiring a
grant under this section shall submit an application to the Secretary at
such time, in such manner, and containing such information as the
Secretary may reasonably require.
``(d) Priorities.--The Secretary shall give priority to applications
that--
``(1) are from institutions of higher education in which not
less than 50 percent of the institution's entering first-year
students who are subject to mandatory assessment are assessed as
needing developmental courses to bring reading, writing, or
mathematics skills up to college level; and
``(2) propose to replicate practices that have proven
effective with adults, or propose to collaborate with adult
education providers.

``(e) Required Activity.--An institution of higher education that
receives a grant under this section shall use the grant funds to create
workforce bridge programs to customize developmental

[[Page 3422]]
122 STAT. 3422

education curricula, including English language instruction, to reflect
the content of for-credit occupational certificate or degree programs,
or clusters of such programs, in which developmental education students
are enrolled or plan to enroll. Such workforce bridge programs shall
integrate the curricula and the instruction of the developmental and
college-level coursework.
``(f) Permissible Activities.--An institution of higher education
that receives a grant under this section may use the grant funds to
carry out one or more of the following activities:
``(1) Designing and implementing innovative ways to improve
retention in and completion of developmental education courses,
including enrolling students in cohorts, accelerating course
content, dually enrolling students in developmental and college-
level courses, tutoring, providing counseling and other
supportive services, and giving small, material incentives for
attendance and performance.
``(2) In consultation with faculty in the appropriate
departments, reconfiguring courses offered on-site during
standard academic terms for modular, compressed, or other
alternative schedules, or for distance-learning formats, to meet
the needs of working adults.
``(3) Developing counseling strategies that address the
needs of students in remedial education courses, and including
counseling students on career options and the range of programs
available, such as certificate programs that are articulated to
degree programs and programs designed to facilitate transfer to
four-year institutions of higher education.
``(4) Improving the quality of teaching in remedial courses
through professional development, reclassification of such
teaching positions, or other means the institution of higher
education determines appropriate.
``(5) Any other activities the institution of higher
education and the Secretary determine will promote retention of,
and completion by, students attending institutions of higher
education.

``(g) Grant Period.--Grants made under this section shall be for a
period of not less than three years and not more than five years.
``(h) Technical Assistance.--The Secretary shall provide technical
assistance to recipients of, and applicants for, grants under this
section.
``(i) Report and Summary.--Each institution of higher education that
receives a grant under this section shall report to the Secretary on the
effectiveness of the program in enabling students to move rapidly from
developmental coursework into for-credit occupational courses and
through program completion. The Secretary shall summarize the reports,
identify best practices, and disseminate the information from such
summary and identification to the public.
``(j) Authorization of Appropriations.--There are authorized to
carry out this section such sums as may be necessary for fiscal year
2009 and each of the five succeeding fiscal years.

[[Page 3423]]
122 STAT. 3423

``PART Q--RURAL DEVELOPMENT GRANTS FOR RURAL-SERVING COLLEGES AND
UNIVERSITIES

``SEC. 861. [NOTE: 20 USC 1161q.] GRANTS TO RURAL-SERVING
INSTITUTIONS OF HIGHER EDUCATION.

``(a) Purposes.--The purposes of this section are--
``(1) to increase enrollment and graduation rates of
secondary school graduates and nontraditional students from
rural areas at two-year and four-year institutions of higher
education, and their articulation from two-year degree programs
into four-year degree programs; and
``(2) to promote economic growth and development in rural
America through partnership grants to consortia of rural-serving
institutions of higher education, local educational agencies,
and regional employers.

``(b) Definitions.--For the purposes of this section:
``(1) Rural-serving institution of higher education.--The
term `rural-serving institution of higher education' means an
institution of higher education that primarily serves rural
areas.
``(2) Rural area.--The term `rural area' means an area that
is defined, identified, or otherwise recognized as rural by a
governmental agency of the State in which the area is located.
``(3) Nontraditional student.--The term `nontraditional
student' means an individual who--
``(A) delays enrollment in an institution of higher
education by three or more years after secondary school
graduation;
``(B) attends an institution of higher education
part-time; or
``(C) attends an institution of higher education
and--
``(i) works full-time;
``(ii) is an independent student, as defined
in section 480;
``(iii) has one or more dependents other than
a spouse;
``(iv) is a single parent; or
``(v) does not have a secondary school diploma
or the recognized equivalent of such a diploma.
``(4) Regional employer.--The term `regional employer' means
an employer within a rural area.

``(c) Partnership.--
``(1) Required partners.--A rural-serving institution of
higher education, or a consortium of rural-serving institutions
of higher education, that receives a grant under this section
shall carry out the activities of the grant in partnership
with--
``(A) one or more local educational agencies serving
a rural area; and
``(B) one or more regional employers or local boards
(as such term is defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801)) serving a rural
area.
``(2) Optional partners.--A rural-serving institution of
higher education, or a consortium of rural-serving institutions

[[Page 3424]]
122 STAT. 3424

of higher education, that receives a grant under this section,
may carry out the activities of the grant in partnership with--
``(A) an educational service agency (as defined in
section 9101 of the Elementary and Secondary Education
Act of 1965); or
``(B) a nonprofit organization with demonstrated
expertise in rural education at the secondary and
postsecondary levels.

``(d) Grants Authorized.--
``(1) In general.--From amounts made available under
subsection (g), the Secretary is authorized to award grants, on
a competitive basis, to eligible rural-serving institutions of
higher education or a consortium of such institutions, to carry
out the activities described in subsection (f).
``(2) Duration.--A grant awarded under this section shall be
awarded for a period not to exceed three years.
``(3) Maximum and minimum grants.--No grant awarded under
this section shall be less than $200,000.
``(4) Special considerations.--In awarding grants under this
section, the Secretary shall give special consideration to
applications that demonstrate the most potential and propose the
most promising and innovative approaches for--
``(A) increasing the percentage of graduates of
rural secondary schools attending rural-serving
institutions of higher education;
``(B) meeting the employment needs of regional
employers with graduates of rural-serving institutions
of higher education; and
``(C) improving the health of the regional economy
of a rural area through a partnership of local
educational agencies serving the rural area, rural-
serving institutions of higher education, and regional
employers.
``(5) Limitation.--A rural-serving institution of higher
education shall not receive more than one grant under this
section.

``(e) Applications.--Each rural-serving institution of higher
education desiring a grant under this section shall submit to the
Secretary an application at such time, in such manner, and containing
such information as the Secretary may reasonably require.
``(f) Required [NOTE: Rural areas.] Use of Funds.--A rural-serving
institution of higher education that receives a grant under this section
shall use grant funds for at least three of the following four purposes:
``(1) To improve postsecondary enrollment rates for rural
secondary school students at rural-serving institutions of
higher education, which may include--
``(A) programs to provide students and families with
counseling related to applying for postsecondary
education, and Federal and State financial assistance
for postsecondary education;
``(B) programs that provide students and families of
rural high schools access and exposure to campuses,
classes, programs, and internships of rural-serving
institutions of higher education, including covering the
cost of transportation to and from such institutions;
and
``(C) other initiatives that assist students and
families in applying for and developing interest in
attending rural-serving institutions of higher
education.

[[Page 3425]]
122 STAT. 3425

``(2) To increase enrollment rates of nontraditional
students in degree programs at rural-serving institutions of
higher education, which may include--
``(A) programs to provide nontraditional students
with counseling related to applying for postsecondary
education, and Federal and State financial assistance
for postsecondary education;
``(B) community outreach initiatives to encourage
nontraditional students to enroll in a rural-serving
institution of higher education; and
``(C) programs to improve the enrollment of
nontraditional students in two-year degree programs and
the transition of nontraditional students articulating
from two-year degree programs to four-year degree
programs.
``(3) To create or strengthen academic programs at rural-
serving institutions of higher education to prepare graduates to
enter into high-need occupations in the regional and local
economies.
``(4) To provide additional career training to students of
rural-serving institutions of higher education in fields
relevant to the regional economy.

``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as many be necessary
for fiscal year 2009 and each of the five succeeding fiscal years.

``PART R--CAMPUS-BASED DIGITAL THEFT PREVENTION

``SEC. 871. [NOTE: 20 USC 1161r.] CAMPUS-BASED DIGITAL THEFT
PREVENTION.

``(a) Program Authority.--From the amounts appropriated under
subsection (d), 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,
education, and cost-effective technological solutions, to reduce and
eliminate the illegal downloading and distribution of intellectual
property. Such grants or contracts may also be used for the support of
higher education centers 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 higher education.
``(b) Awards.-- [NOTE: Grants. Contracts.] Grants and contracts
shall be awarded under this section on a competitive basis.

``(c) Applications.-- [NOTE: Regulations.] An institution of
higher education or a consortium of such institutions that desires to
receive a grant or contract under this section shall submit an
application to the Secretary at such time, in such manner, and
containing or accompanied by such information as the Secretary may
reasonably require by regulation.

``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

[[Page 3426]]
122 STAT. 3426

``PART S--TRAINING FOR REALTIME WRITERS

``SEC. 872. [NOTE: 20 USC 1161s.] PROGRAM TO PROMOTE TRAINING
AND JOB PLACEMENT OF REALTIME WRITERS.

``(a) Authorization of Grant Program.--
``(1) In general.-- [NOTE: Grants.] From the amounts
appropriated to carry out this section, the Secretary shall
award grants, on a competitive basis, to eligible entities under
paragraph (2) to promote training and placement of individuals,
including individuals who have completed a court reporting
training program, as realtime writers in order to meet the
requirements for closed captioning of video programming set
forth in section 713 of the Communications Act of 1934 (47
U.S.C. 613) and the rules prescribed thereunder.
``(2) Eligible entities.--For purposes of this section, an
eligible entity is a court reporting program that--
``(A) has a curriculum capable of training realtime
writers qualified to provide captioning services;
``(B) is accredited by an accrediting agency or
association recognized by the Secretary; and
``(C) is participating in student aid programs under
title IV.
``(3) Priority in grants.--In determining whether to make
grants under this section, the Secretary shall give a priority
to eligible entities that, as determined by the Secretary--
``(A) possess the most substantial capability to
increase their capacity to train realtime writers;
``(B) demonstrate the most promising collaboration
with educational institutions, businesses, labor
organizations, or other community groups having the
potential to train or provide job placement assistance
to realtime writers; or
``(C) propose the most promising and innovative
approaches for initiating or expanding training or job
placement assistance efforts with respect to realtime
writers.
``(4) Duration of grant.--A grant under this section shall
be for a period of up to five years.
``(5) Maximum amount of grant.--The amount of a grant
provided under this subsection to an eligible entity may not
exceed $1,500,000 for the period of the grant.

``(b) Application.--
``(1) In general.--To receive a grant under subsection (a),
an eligible entity shall submit an application to the Secretary
at such time and in such manner as the Secretary may require.
The application shall contain the information set forth under
paragraph (2).
``(2) Information.--Information in the application of an
eligible entity for a grant under subsection (a) shall include
the following:
``(A) A description of the training and assistance
to be funded using the grant amount, including how such
training and assistance will increase the number of
realtime writers.
``(B) A description of performance measures to be
utilized to evaluate the progress of individuals
receiving such training and assistance in matters
relating to enrollment, completion of training, and job
placement and retention.

[[Page 3427]]
122 STAT. 3427

``(C) A description of the manner in which the
eligible entity will ensure that recipients of
scholarships, if any, funded by the grant will be
employed and retained as realtime writers.
``(D) A description of the manner in which the
eligible entity intends to continue providing the
training and assistance to be funded by the grant after
the end of the grant period, including any partnerships
or arrangements established for that purpose.
``(E) A description of how the eligible entity will
work with local boards (as defined in section 101 of the
Workforce Investment Act of 1998 (29 U.S.C. 2801)) to
ensure that training and assistance to be funded with
the grant will further local workforce goals, including
the creation of educational opportunities for
individuals who are from economically disadvantaged
backgrounds or are displaced workers.
``(F) Additional information, if any, on the
eligibility of the eligible entity for priority in the
making of grants under subsection (a)(3).
``(G) Such other information as the Secretary may
require.

``(c) Use of Funds.--
``(1) In general.--An eligible entity receiving a grant
under subsection (a) shall use the grant amount for purposes
relating to the recruitment, training and assistance, and job
placement of individuals, including individuals who have
completed a court reporting training program, as realtime
writers, including--
``(A) recruitment;
``(B) subject to paragraph (2), the provision of
scholarships;
``(C) distance learning;
``(D) further developing and implementing both
English and Spanish curricula to more effectively train
individuals in realtime writing skills, and education in
the knowledge necessary for the delivery of high quality
closed captioning services;
``(E) mentoring students to ensure successful
completion of the realtime training and providing
assistance in job placement;
``(F) encouraging individuals with disabilities to
pursue a career in realtime writing; and
``(G) the employment and payment of personnel for
the purposes described in this paragraph.
``(2) Scholarships.--
``(A) Amount.--The amount of a scholarship under
paragraph (1)(B) shall be based on the amount of need of
the scholarship recipient for financial assistance, as
determined in accordance with part F of title IV.
``(B) Agreement.--Each recipient of a scholarship
under paragraph (1)(B) shall enter into an agreement
with the school in which the recipient is enrolled to
provide realtime writing services for the purposes
described in subsection (a)(1) for a period of time
appropriate (as determined by the Secretary) for the
amount of the scholarship received.

[[Page 3428]]
122 STAT. 3428

``(C) Coursework and employment.--The Secretary
shall establish requirements for coursework and
employment for recipients of scholarships under
paragraph (1)(B), including requirements for repayment
of scholarship amounts in the event of failure to meet
such requirements for coursework and employment.
The [NOTE: Waiver authority.] Secretary may waive, in
whole or in part, the requirements for repayment of
scholarship amounts on the basis of economic conditions
which may affect the ability of scholarship recipients
to find work as realtime writers.
``(3) Administrative costs.--The recipient of a grant under
this section may not use more than five percent of the grant
amount to pay administrative costs associated with activities
funded by the grant. The Secretary shall use not more than five
percent of the amount available for grants under this section in
any fiscal year for administrative costs of the program.
``(4) Supplement not supplant.--Grant amounts under this
section shall supplement and not supplant other Federal or non-
Federal funds of the grant recipient for purposes of promoting
the training and placement of individuals as realtime writers.

``(d) Report.--
``(1) In general.--Each eligible entity receiving a grant
under subsection (a) shall submit to the Secretary, at the end
of the grant period, a report on the activities of such entity
with respect to the use of grant amounts during the grant
period.
``(2) Report information.--Each report of an eligible entity
under paragraph (1) shall include--
``(A) an assessment by the entity of the
effectiveness of activities carried out using such funds
in increasing the number of realtime writers, using the
performance measures submitted by the eligible entity in
the application for the grant under subsection (b)(2);
and
``(B) a description of the best practices identified
by the eligible entity for increasing the number of
individuals who are trained, employed, and retained in
employment as realtime writers.
``(3) Summaries.--The Secretary shall summarize the reports
submitted under paragraph (2) and make such summary available on
the Department's website.

``(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART T--CENTERS OF EXCELLENCE FOR VETERAN STUDENT SUCCESS

``SEC. 873. [NOTE: 20 USC 1161t.] MODEL PROGRAMS FOR CENTERS OF
EXCELLENCE FOR VETERAN STUDENT SUCCESS.

``(a) Purpose.--It is the purpose of this section to encourage model
programs to support veteran student success in postsecondary education
by coordinating services to address the academic, financial, physical,
and social needs of veteran students.
``(b) Grants Authorized.--

[[Page 3429]]
122 STAT. 3429

``(1) In general.--Subject to the availability of
appropriations under subsection (f), the Secretary shall award
grants to institutions of higher education to develop model
programs to support veteran student success in postsecondary
education.
``(2) Grant period.--A grant awarded under this section
shall be awarded for a period of three years.

``(c) Use of Grants.--
``(1) Required activities.--An institution of higher
education receiving a grant under this section shall use such
grant to carry out a model program that includes--
``(A) establishing [NOTE: Establishment.] a Center
of Excellence for Veteran Student Success on the campus
of the institution to provide a single point of contact
to coordinate comprehensive support services for veteran
students;
``(B) establishing a veteran student support team,
including representatives from the offices of the
institution responsible for admissions, registration,
financial aid, veterans benefits, academic advising,
student health, personal or mental health counseling,
career advising, disabilities services, and any other
office of the institution that provides support to
veteran students on campus;
``(C) providing a coordinator whose primary
responsibility is to coordinate the model program
carried out under this section;
``(D) monitoring the rates of veteran student
enrollment, persistence, and completion; and
``(E) developing a plan to sustain the Center of
Excellence for Veteran Student Success after the grant
period.
``(2) Other authorized activities.--An institution of higher
education receiving a grant under this section may use such
grant to carry out any of the following activities with respect
to veteran students:
``(A) Outreach and recruitment of such students.
``(B) Supportive instructional services for such
students, which may include--
``(i) personal, academic, and career
counseling, as an ongoing part of the program;
``(ii) tutoring and academic skill-building
instruction assistance, as needed; and
``(iii) assistance with special admissions and
transfer of credit from previous postsecondary
education or experience.
``(C) Assistance in obtaining student financial aid.
``(D) Housing support for veteran students living in
institutional facilities and commuting veteran students.
``(E) Cultural events, academic programs,
orientation programs, and other activities designed to
ease the transition to campus life for veteran students.
``(F) Support for veteran student organizations and
veteran student support groups on campus.
``(G) Coordination of academic advising and
admissions counseling with military bases and national
guard units in the area.
``(H) Other support services the institution
determines to be necessary to ensure the success of
veterans in achieving educational and career goals.

``(d) Application; Selection.--

[[Page 3430]]
122 STAT. 3430

``(1) Application.--To be considered for a grant under this
section, an institution of higher education shall submit to the
Secretary an application at such time, in such manner, and
accompanied by such information as the Secretary may require.
``(2) Selection considerations.--In awarding grants under
this section, the Secretary shall consider--
``(A) the number of veteran students enrolled at an
institution of higher education; and
``(B) the need for model programs to address the
needs of veteran students at a wide range of
institutions of higher education, including the need to
provide--
``(i) an equitable distribution of such grants
to institutions of higher education of various
types and sizes;
``(ii) an equitable geographic distribution of
such grants; and
``(iii) an equitable distribution of such
grants among rural and urban areas.

``(e) Evaluation and Accountability Plan.--The Secretary shall
develop an evaluation and accountability plan for model programs funded
under this section to objectively measure the impact of such programs,
including a measure of whether postsecondary education enrollment,
persistence, and completion for veterans increases as a result of such
programs.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART U--UNIVERSITY SUSTAINABILITY PROGRAMS

``SEC. 881. [NOTE: 20 USC 1161u.] SUSTAINABILITY PLANNING GRANTS
AUTHORIZED.

``(a) Program [NOTE: Grants.] Authorized.--
``(1) In general.--From the amounts appropriated to carry
out this section, the Secretary, in consultation with the
Administrator of the Environmental Protection Agency, shall make
grants to eligible entities to establish sustainability programs
to design and implement sustainability practices, including in
the areas of energy management, greenhouse gas emissions
reductions, green building, waste management, purchasing,
transportation, and toxics management, and other aspects of
sustainability that integrate campus operations with
multidisciplinary academic programs and are applicable to the
private and government sectors.
``(2) Period of grant.--The provision of payments under a
grant under paragraph (1) shall extend over a period of not more
than four fiscal years.
``(3) Definition of eligible entity.--For purposes of this
part, the term `eligible entity' means--
``(A) an institution of higher education; or
``(B) a nonprofit consortium, association, alliance,
or collaboration operating in partnership with one or
more institutions of higher education that received
funds for the implementation of work associated with
sustainability programs under this part.

``(b) Applications.--

[[Page 3431]]
122 STAT. 3431

``(1) In general.--To receive a grant under subsection
(a)(1), an eligible entity shall submit an application to the
Secretary at such time, in such form, and containing such
information as the Secretary may reasonably require.
``(2) Assurances.--Such application shall include assurances
that the eligible entity--
``(A) has developed a plan, including an evaluation
component, for the program component established
pursuant to subsection (c);
``(B) shall use Federal funds received from a grant
under subsection (a) to supplement, not supplant, non-
Federal funds that would otherwise be available for
projects funded under this section;
``(C) shall provide, with respect to any fiscal year
in which such entity receives funds from a grant under
subsection (a)(1), non-Federal funds or an in-kind
contribution in an amount equal to 20 percent of funds
from such grant, for the purpose of carrying out the
program component established pursuant to subsection
(c); and
``(D) shall collaborate with business, government,
and the nonprofit sectors in the development and
implementation of its sustainability plan.

``(c) Use of Funds.--
``(1) Individual institutions.--Grants made under subsection
(a) may be used by an eligible entity that is an individual
institution of higher education for the following purposes:
``(A) To develop and implement administrative and
operations practices at an institution of higher
education that test, model, and analyze principles of
sustainability.
``(B) To establish multidisciplinary education,
research, and outreach programs at an institution of
higher education that address the environmental, social,
and economic dimensions of sustainability.
``(C) To support research and teaching initiatives
that focus on multidisciplinary and integrated
environmental, economic, and social elements.
``(D) To establish initiatives in the areas of
energy management, greenhouse gas emissions reductions,
green building, waste management, purchasing, toxics
management, transportation, and other aspects of
sustainability.
``(E) To support student, faculty, and staff work at
an institution of higher education to implement,
research, and evaluate sustainable practices.
``(F) To expand sustainability literacy on campus.
``(G) To integrate sustainability curricula in all
programs of instruction, particularly in business,
architecture, technology, manufacturing, engineering,
and science programs.
``(2) Partnerships.--Grants made under subsection (a) may be
used by an eligible entity that is a nonprofit consortium,
association, alliance, or collaboration operating in partnership
with one or more institutions of higher education for the
following purposes:
``(A) To conduct faculty, staff and administrator
training on the subjects of sustainability and
institutional change.

[[Page 3432]]
122 STAT. 3432

``(B) To compile, evaluate, and disseminate best
practices, case studies, guidelines and standards
regarding sustainability.
``(C) To conduct efforts to engage external
stakeholders such as business, alumni, and accrediting
agencies in the process of building support for
research, education, and technology development for
sustainability.
``(D) To conduct professional development programs
for faculty in all disciplines to enable faculty to
incorporate sustainability content in their courses.
``(E) To create the analytical tools necessary for
institutions of higher education to assess and measure
their individual progress toward fully sustainable
campus operations and fully integrating sustainability
into the curriculum.
``(F) To develop educational benchmarks for
institutions of higher education to determine the
necessary rigor and effectiveness of academic
sustainability programs.

``(d) Reports.--An eligible entity that receives a grant under
subsection (a) shall submit to the Secretary, for each fiscal year in
which the entity receives amounts from such grant, a report that
describes the work conducted pursuant to subsection (c), research
findings and publications, administrative savings experienced, and an
evaluation of the program.
``(e) Allocation Requirement.--The Secretary may not make grants
under subsection (a) to any eligible entity in a total amount that is
less than $250,000 or more than $2,000,000.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART V--MODELING AND SIMULATION PROGRAMS

``SEC. 891. [NOTE: 20 USC 1161v.] MODELING AND SIMULATION.

``(a) Purpose; Definition.--
``(1) Purpose.--The purpose of this section is to promote
the study of modeling and simulation at institutions of higher
education, through the collaboration with new and existing
programs, and specifically to promote the use of technology in
such study through the creation of accurate models that can
simulate processes or recreate real life, by--
``(A) establishing a task force at the Department of
Education to raise awareness of and define the study of
modeling and simulation;
``(B) providing grants to institutions of higher
education to develop new modeling and simulation degree
programs; and
``(C) providing grants for institutions of higher
education to enhance existing modeling and simulation
degree programs.
``(2) Definition.--In this section, the term `modeling and
simulation' means a field of study related to the application of
computer science and mathematics to develop a level of
understanding of the interaction of the parts of a system and of
a system as a whole.

``(b) Establishment of Task Force.--

[[Page 3433]]
122 STAT. 3433

``(1) In general.--Subject to the availability of
appropriations, the Secretary shall establish a task force
within the Department to study modeling and simulation and to
support the development of the modeling and simulation field.
The activities of such task force shall include--
``(A) helping to define the study of modeling and
simulation (including the content of modeling and
simulation classes and programs);
``(B) identifying best practices for such study;
``(C) identifying core knowledge and skills that
individuals who participate in modeling and simulation
programs should acquire; and
``(D) providing recommendations to the Secretary
with respect to--
``(i) the information described in
subparagraphs (A) through (C); and
``(ii) a system by which grants under this
section will be distributed.
``(2) Task force membership.--The membership of the task
force under this subsection shall be composed of representatives
from--
``(A) institutions of higher education with
established modeling and simulation degree programs;
``(B) the National Science Foundation;
``(C) Federal Government agencies that use modeling
and simulation extensively, including the Department of
Defense, the National Institutes of Health, the
Department of Homeland Security, the Department of
Health and Human Services, the Department of Energy, and
the Department of Transportation;
``(D) private industries with a primary focus on
modeling and simulation;
``(E) national modeling and simulation
organizations; and
``(F) the Office of Science and Technology Policy.

``(c) Enhancing Modeling and Simulation at Institutions of Higher
Education.--
``(1) Enhancement grants authorized.--
``(A) In general.--The Secretary is authorized to
award grants, on a competitive basis, to eligible
institutions to enhance modeling and simulation degree
programs at such eligible institutions.
``(B) Duration of grant.--A grant awarded under this
subsection shall be awarded for a three-year period, and
such grant period may be extended for not more than two
years if the Secretary determines that an eligible
institution has demonstrated success in enhancing the
modeling and simulation degree program at such eligible
institution.
``(C) Minimum grant amount.--Subject to the
availability of appropriations, a grant awarded to an
eligible institution under this subsection shall not be
less than $750,000.
``(D) Non-federal share.--Each eligible institution
receiving a grant under this subsection shall provide,
from non-Federal sources, in cash or in-kind, an amount
equal to 25 percent of the amount of the grant to carry
out

[[Page 3434]]
122 STAT. 3434

the activities supported by the grant. The Secretary may
waive the non-Federal share requirement under this
subparagraph for an eligible institution if the
Secretary determines a waiver to be appropriate based on
the financial ability of the institution.
``(2) Eligible institutions.--For the purposes of this
subsection, an eligible institution is an institution of higher
education that--
``(A) has an established modeling and simulation
degree program, including a major, minor, or career-
track program; or
``(B) has an established modeling and simulation
certificate or concentration program.
``(3) Application.--To be considered for a grant under this
subsection, an eligible institution shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require. Such
application shall include--
``(A) a letter from the president or provost of the
eligible institution that demonstrates the institution's
commitment to the enhancement of the modeling and
simulation program at the institution of higher
education;
``(B) an identification of designated faculty
responsible for the enhancement of the institution's
modeling and simulation program; and
``(C) a detailed plan for how the grant funds will
be used to enhance the modeling and simulation program
of the institution.
``(4) Uses of funds.--A grant awarded under this subsection
shall be used by an eligible institution to carry out the plan
developed in accordance with paragraph (3)(C) to enhance
modeling and simulation programs at the institution, which may
include--
``(A) in the case of an institution that is eligible
under paragraph (2)(B), activities to assist in the
establishment of a major, minor, or career-track
modeling and simulation program at the eligible
institution;
``(B) expanding the multidisciplinary nature of the
institution's modeling and simulation programs;
``(C) recruiting students into the field of modeling
and simulation through the provision of fellowships or
assistantships;
``(D) creating new courses to complement existing
courses and reflect emerging developments in the
modeling and simulation field;
``(E) conducting research to support new
methodologies and techniques in modeling and simulation;
and
``(F) purchasing equipment necessary for modeling
and simulation programs.

``(d) Establishing Modeling and Simulation Programs.--
``(1) Establishment grants authorized.--
``(A) In general.--The Secretary is authorized to
award grants to institutions of higher education to
establish a modeling and simulation program, including a
major, minor, career-track, certificate, or
concentration program.
``(B) Duration of grant.--A grant awarded under this
subsection shall be awarded for a three-year period,

[[Page 3435]]
122 STAT. 3435

and such grant period may be extended for not more than
two years if the Secretary determines that an eligible
institution has demonstrated success in establishing a
modeling and simulation degree program at such eligible
institution.
``(C) Minimum grant amount.--Subject to the
availability of appropriations, a grant awarded to an
eligible institution under this subsection shall not be
less than $750,000.
``(D) Non-federal share.--Each eligible institution
receiving a grant under this subsection shall provide,
from non-Federal sources, in cash or in-kind, an amount
equal to 25 percent of the amount of the grant to carry
out the activities supported by the grant. The Secretary
may waive the non-Federal share requirement under this
subparagraph for an eligible institution if the
Secretary determines a waiver to be appropriate based on
the financial ability of the institution.
``(2) Application.--To apply for a grant under this
subsection, an eligible institution shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require. Such
application shall include--
``(A) a letter from the president or provost of the
eligible institution that demonstrates the institution's
commitment to the establishment of a modeling and
simulation program at the institution of higher
education;
``(B) a detailed plan for how the grant funds will
be used to establish a modeling and simulation program
at the institution; and
``(C) a description of how the modeling and
simulation program established under this subsection
will complement existing programs and fit into the
institution's current program and course offerings.
``(3) Uses of funds.--A grant awarded under this subsection
may be used by an eligible institution to--
``(A) establish, or work toward the establishment
of, a modeling and simulation program, including a
major, minor, career-track, certificate, or
concentration program at the eligible institution;
``(B) provide adequate staffing to ensure the
successful establishment of the modeling and simulation
program, which may include the assignment of full-time
dedicated or supportive faculty; and
``(C) purchase equipment necessary for a modeling
and simulation program.

``(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years. Of the
amounts authorized to be appropriated for each fiscal year--
``(1) $1,000,000 is authorized to carry out the activities
of the task force established pursuant to subsection (b); and
``(2) of the amount remaining after the allocation for
paragraph (1)--
``(A) 50 percent is authorized to carry out the
grant program under subsection (c); and

[[Page 3436]]
122 STAT. 3436

``(B) 50 percent is authorized to carry out the
grant program under subsection (d).

``PART W--PATH TO SUCCESS

``SEC. 892. [NOTE: 20 USC 1161w.] PATH TO SUCCESS.

``(a) Purpose.--The purpose of this section is to encourage
community supported programs that--
``(1) leverage and enhance community support for at-risk
young adults by facilitating the transition of such young adults
who are eligible individuals into productive learning
environments where such young adults can obtain the life,
social, academic, career, and technical skills and credentials
necessary to strengthen the Nation's workforce;
``(2) provide counseling, as appropriate, for eligible
individuals participating in the programs to allow the eligible
individuals to build a relationship with one or more guidance
counselors during the period that the individuals are enrolled
in the programs, including providing referrals and connections
to community resources that help eligible individuals transition
back into the community with the necessary life, social,
academic, career, and technical skills after being in detention,
or incarcerated, particularly resources related to health,
housing, job training, and workplace readiness;
``(3) provide training and education for eligible
individuals participating in the programs, to allow such
individuals to assist community officials and law enforcement
agencies with the deterrence and prevention of gang and youth
violence by participating in seminars, training, and workshops
throughout the community; and
``(4) provide each eligible individual participating in the
programs with individual attention based on a curriculum that
matches the interests and abilities of the individual to the
resources of the program.

``(b) Reentry Education Program.--
``(1) Grant program established.--From the amounts
appropriated under subsection (g), the Secretary is authorized
to award grants to community colleges to enter into and maintain
partnerships with juvenile detention centers and secure juvenile
justice residential facilities to provide assistance, services,
and education to eligible individuals who reenter the community
and pursue, in accordance with the requirements of this section,
at least one of the following:
``(A) A certificate of completion for a specialized
area of study, such as career and technical training and
other alternative postsecondary educational programs.
``(B) An associate's degree.
``(2) Grant period.--A grant awarded under this part shall
be for one four-year period, and may be renewed for an
additional period as the Secretary determines to be appropriate.
``(3) Application.--A community college desiring to receive
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 shall require. Such application
shall include--
``(A) an assessment of the existing community
resources available to serve at-risk youth;

[[Page 3437]]
122 STAT. 3437

``(B) a detailed description of the program and
activities the community college will carry out with
such grant; and
``(C) a proposed budget describing how the community
college will use the funds made available by such grant.
``(4) Priority.--In awarding grants under this part, the
Secretary shall give priority to community colleges that propose
to serve the highest number of priority individuals, and, among
such community colleges, shall give priority to community
colleges that the Secretary determines will best carry out the
purposes of this part, based on the applications submitted in
accordance with paragraph (3).

``(c) Allowable Uses of Funds.--A community college awarded a grant
under this part may use such grant to--
``(1) pay for tuition and transportation costs of eligible
individuals;
``(2) establish and carry out an education program that
includes classes for eligible individuals that--
``(A) provide marketable life and social skills to
such individuals;
``(B) meet the education program requirements under
subsection (d), including as appropriate, courses
necessary for the completion of a secondary school
diploma or the recognized equivalent;
``(C) promote the civic engagement of such
individuals; and
``(D) facilitate a smooth reentry of such
individuals into the community;
``(3) create and carry out a mentoring program that is--
``(A) specifically designed to help eligible
individuals with the potential challenges of the
transitional period from detention to release;
``(B) created in consultation with guidance
counselors, academic advisors, law enforcement
officials, and other community resources; and
``(C) administered by a program coordinator,
selected and employed by the community college, who
shall oversee each individual's development and shall
serve as the immediate supervisor and reporting officer
to whom the academic advisors, guidance counselors, and
volunteers shall report regarding the progress of each
such individual;
``(4) facilitate employment opportunities for eligible
individuals by entering into partnerships with public and
private entities to provide opportunities for internships,
apprenticeships, and permanent employment, as possible, for such
individuals; and
``(5) provide training for eligible individuals
participating in the programs, to allow such individuals to
assist community officials and law enforcement agencies with the
deterrence and prevention of gang and youth violence by
participating in seminars and workshop series throughout the
community.

``(d) Education Program Requirements.--An education program
established and carried out under subsection (c) shall--
``(1) include classes that are required for completion of a
certificate, diploma, or degree described in subparagraph (A) or
(B) of subsection (b)(1), including as appropriate courses
necessary for the completion of a secondary school diploma or
the recognized equivalent;

[[Page 3438]]
122 STAT. 3438

``(2) provide a variety of academic programs, with various
completion requirements, to accommodate the diverse academic
backgrounds, learning styles, and academic and career interests
of the eligible individuals who participate in the education
program;
``(3) offer flexible academic programs that are designed to
improve the academic development and achievement of eligible
individuals, and to avoid high attrition rates for such
individuals; and
``(4) provide for a uniquely designed education plan for
each eligible individual participating in the program, which
shall require such individual to receive, at a minimum, a
certificate or degree described in subparagraph (A) or (B) of
subsection (b)(1) to successfully complete such program.

``(e) Reports.--Each community college awarded a grant under this
part shall submit to the Secretary a report--
``(1) [NOTE: Records.] documenting the results of the
program carried out with such grant; and
``(2) evaluating the effectiveness of activities carried out
through such program.

``(f) Definitions.--In this section:
``(1) Community college.--The term `community college' has
the meaning given the term `junior or community college' in
section 312(f).
``(2) Eligible individual.--The term `eligible individual'
means an individual who--
``(A) is 16 to 25 years of age (inclusive); and
``(B)(i) has been convicted of a criminal offense;
and
``(ii) is detained in, or has been released from, a
juvenile detention center or secure juvenile justice
residential facility.
``(3) Gang-related offense.--
``(A) In general.--The term `gang-related offense'
means an offense that involves the circumstances
described in subparagraph (B) and that is--
``(i) a Federal or State felony involving a
controlled substance (as defined in section 102 of
the Controlled Substances Act (21 U.S.C. 802)) for
which the maximum penalty is not less than five
years;
``(ii) a Federal or State crime of violence
that has as an element the use or attempted use of
physical force against the person of another for
which the maximum penalty is not less than six
months; or
``(iii) a conspiracy to commit an offense
described in clause (i) or (ii).
``(B) Circumstances.--The circumstances described in
this subparagraph are that the offense described in
subparagraph (A) was committed by a person who--
``(i) participates in a criminal street gang
(as defined in section 521(a) of title 18, United
States Code) with knowledge that such gang's
members engage in or have engaged in a continuing
series of offenses described in subparagraph (A);
and
``(ii) intends to promote or further the
felonious activities of the criminal street gang
or maintain or increase the person's position in
the gang.

[[Page 3439]]
122 STAT. 3439

``(4) Priority individual.--The term `priority individual'
means an individual who--
``(A) is an eligible individual;
``(B) has been convicted of a gang-related offense;
and
``(C) has served or is serving a period of detention
in a juvenile detention center or secure juvenile
justice residential facility for such offense.
``(5) Guidance counselor.--The term `guidance counselor'
means an individual who works with at-risk youth on a one-on-one
basis, to establish a supportive relationship with such at-risk
youth and to provide such at-risk youth with academic assistance
and exposure to new experiences that enhance their ability to
become responsible citizens.

``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART X--SCHOOL OF VETERINARY MEDICINE COMPETITIVE GRANT PROGRAM

``SEC. 893. [NOTE: Public welfare. 20 USC 1161x.] SCHOOL OF
VETERINARY MEDICINE COMPETITIVE GRANT
PROGRAM.

``(a) In General.--From the amounts appropriated under subsection
(g), the Secretary of Health and Human Services shall award competitive
grants to eligible entities for the purpose of improving public health
preparedness through increasing the number of veterinarians in the
workforce.
``(b) Eligible Entities.--To be eligible to receive a grant under
subsection (a), an entity shall--
``(1) be--
``(A) a public or other nonprofit school of
veterinary medicine that is accredited by a nationally
recognized accrediting agency or association recognized
by the Secretary of Education pursuant to part H of
title IV;
``(B) a public or nonprofit, department of
comparative medicine, department of veterinary science,
school of public health, or school of medicine that is
accredited by a nationally recognized accrediting agency
or association recognized by the Secretary of Education
pursuant to part H of title IV and that offers graduate
training for veterinarians in a public health practice
area as determined by the Secretary of Health and Human
Services; or
``(C) a public or nonprofit entity that--
``(i) conducts recognized residency training
programs for veterinarians that are approved by a
veterinary specialty organization that is
recognized by the American Veterinary Medical
Association; and
``(ii) offers postgraduate training for
veterinarians in a public health practice area as
determined by the Secretary of Health and Human
Services; and
``(2) [NOTE: Applications.] prepare and submit to the
Secretary of Health and Human Services an application, at such
time, in such manner, and containing such information as the
Secretary of Health and Human Services may require.

``(c) Consideration of Applications.-- [NOTE: Procedures.] The
Secretary of Health and Human Services shall establish procedures to
ensure that

[[Page 3440]]
122 STAT. 3440

applications under subsection (b)(2) are rigorously reviewed and that
grants are competitively awarded based on--
``(1) the ability of the applicant to increase the number of
veterinarians who are trained in specified public health
practice areas as determined by the Secretary of Health and
Human Services;
``(2) the ability of the applicant to increase capacity in
research on high priority disease agents; or
``(3) any other consideration the Secretary of Health and
Human Services determines necessary.

``(d) Preference.--In awarding grants under subsection (a), the
Secretary of Health and Human Services shall give preference to
applicants that demonstrate a comprehensive approach by involving more
than one school of veterinary medicine, department of comparative
medicine, department of veterinary science, school of public health,
school of medicine, or residency training program that offers
postgraduate training for veterinarians in a public health practice area
as determined by the Secretary of Health and Human Services.
``(e) Use of Funds.--Amounts received under a grant under this
section shall be used by a grantee to increase the number of
veterinarians in the workforce through paying costs associated with the
expansion of academic programs at schools of veterinary medicine,
departments of comparative medicine, departments of veterinary science,
or entities offering residency training programs, or academic programs
that offer postgraduate training for veterinarians or concurrent
training for veterinary students in specific areas of specialization,
which costs may include minor renovation and improvement in classrooms,
libraries, and laboratories.
``(f) Definition of Public Health Practice Area.--In this section,
the term `public health practice area' includes the areas of
bioterrorism and emergency preparedness, environmental health, food
safety and food security, regulatory medicine, diagnostic laboratory
medicine, and biomedical research.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years. Amounts
appropriated under this subsection shall remain available until
expended.

``PART Y--EARLY [NOTE: Disadvantaged persons.] FEDERAL PELL GRANT
COMMITMENT DEMONSTRATION PROGRAM
``SEC. 894. [NOTE: 20 USC 1161y.] EARLY FEDERAL PELL GRANT
COMMITMENT DEMONSTRATION PROGRAM.

``(a) Demonstration Program Authority.--
``(1) In general.--The Secretary is authorized to carry out
an Early Federal Pell Grant Commitment Demonstration Program
under which--
``(A) the Secretary awards grants to four State
educational agencies, in accordance with paragraph (2),
to pay the administrative expenses incurred in
participating in the demonstration program under this
section; and
``(B) the Secretary awards Federal Pell Grants to
participating students in accordance with this section
and consistent with section 401.
``(2) Grants.--

[[Page 3441]]
122 STAT. 3441

``(A) In general.--From amounts appropriated under
subsection (h) for a fiscal year, the Secretary is
authorized to award grants to four State educational
agencies to enable the State educational agencies to pay
the administrative expenses incurred in participating in
the demonstration program under this section by carrying
out a demonstration project under which eighth grade
students described in subsection (b)(1)(B) receive a
commitment early in the students' academic careers to
receive a Federal Pell Grant.
``(B) Equal amounts.--The Secretary shall award
grants under this section in equal amounts to each of
the four participating State educational agencies.

``(b) Demonstration Project Requirements.--Each of the four
demonstration projects assisted under this section shall meet the
following requirements:
``(1) Participants.--
``(A) In general.--The State educational agency
shall make participation in the demonstration project
available to two cohorts of students, which shall
consist of--
``(i) one cohort of eighth grade students who
begin participating in the first academic year for
which funds have been appropriated to carry out
this section; and
``(ii) one cohort of eighth grade students who
begin participating in the academic year
succeeding the academic year described in clause
(i).
``(B) Students in each cohort.--Each cohort of
students shall consist of not more than 10,000 eighth
grade students who qualify for a free or reduced price
school lunch under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
``(2) Student data.--The State educational agency shall
ensure that student data from local educational agencies serving
students who participate in the demonstration project, as well
as student data from local educational agencies serving a
comparable group of students who do not participate in the
demonstration project, are available for evaluation of the
demonstration project, and are made available in accordance with
the requirements of section 444 of the General Education
Provisions Act (the Family Educational Rights and Privacy Act of
1974).
``(3) Federal pell grant commitment.--Each student who
participates in the demonstration project receives a commitment
from the Secretary to receive a Federal Pell Grant during the
first academic year that the student is in attendance at an
institution of higher education as an undergraduate, provided
that the student applies for Federal financial aid (via the
FAFSA or EZ FAFSA) for such academic year.
``(4) Application [NOTE: State and
local governments.] process.--Each State educational agency
shall establish an application process to select local
educational agencies within the State to participate in the
demonstration project in accordance with subsection (d)(2).
``(5) Local educational agency participation.--Subject to
the 10,000 statewide student limitation described in paragraph
(1), a local educational agency serving students, not less than
50 percent of whom are eligible for a free or reduced price
school lunch under the Richard B. Russell National School

[[Page 3442]]
122 STAT. 3442

Lunch Act (42 U.S.C. 1751 et seq.) or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.), shall be eligible to participate
in the demonstration project.

``(c) State Educational Agency Applications.--
``(1) In general.--Each State educational agency desiring to
participate in the demonstration program under this section
shall submit an application to the Secretary at such time and in
such manner as the Secretary may require.
``(2) Contents.--Each application shall include--
``(A) a description of the proposed targeted
information campaign for the demonstration project and a
copy of the plan described in subsection (f)(2);
``(B) a description of the student population that
will receive an early commitment to receive a Federal
Pell Grant under this section;
``(C) an assurance that the State educational agency
will fully cooperate with the ongoing evaluation of the
demonstration project; and
``(D) such other information as the Secretary may
require.

``(d) Selection Considerations.--
``(1) Selection of state educational agencies.--In selecting
State educational agencies to participate in the demonstration
program under this section, the Secretary shall consider--
``(A) the number and quality of State educational
agency applications received;
``(B) a State educational agency's--
``(i) financial responsibility;
``(ii) administrative capability;
``(iii) commitment to focusing resources, in
addition to any resources provided on students who
receive assistance under part A of title I of the
Elementary and Secondary Education Act of 1965;
``(iv) ability and plans to run an effective
and thorough targeted information campaign for
students served by local educational agencies
eligible to participate in the demonstration
project; and
``(v) ability to ensure the participation in
the demonstration project of a diverse group of
students, including with respect to ethnicity and
gender.
``(2) Local educational agency.--In selecting local
educational agencies to participate in a demonstration project
under this section, the State educational agency shall
consider--
``(A) the number and quality of local educational
agency applications received;
``(B) a local educational agency's--
``(i) financial responsibility;
``(ii) administrative capability;
``(iii) commitment to focusing resources on
students who receive assistance under part A of
title I of the Elementary and Secondary Education
Act of 1965;
``(iv) ability and plans to run an effective
and thorough targeted information campaign for
students served by the local educational agency;
and

[[Page 3443]]
122 STAT. 3443

``(v) ability to ensure the participation in
the demonstration project of a diverse group of
students.

``(e) Evaluation.--
``(1) In general.--From amounts appropriated under
subsection (h) for a fiscal year, the Secretary shall reserve
not more than $1,000,000 to award a grant or contract to an
organization outside the Department for an independent
evaluation of the impact of the demonstration program assisted
under this section.
``(2) Competitive [NOTE: Contracts.] basis.--The grant or
contract shall be awarded on a competitive basis.
``(3) Matters evaluated.--The evaluation described in this
subsection shall--
``(A) determine the number of students who were
encouraged by the demonstration program to pursue higher
education;
``(B) identify the barriers to the effectiveness of
the demonstration program;
``(C) assess the cost-effectiveness of the
demonstration program in improving access to higher
education;
``(D) identify the reasons why participants in the
demonstration program either received or did not receive
a Federal Pell Grant;
``(E) identify intermediate outcomes related to
postsecondary education attendance, such as whether
participants--
``(i) were more likely to take a college-
preparatory curriculum while in secondary school;
``(ii) submitted any applications to
institutions of higher education; and
``(iii) took the PSAT, SAT, or ACT;
``(F) identify the number of students participating
in the demonstration program who pursued an associate's
degree or a bachelor's degree, or other postsecondary
education;
``(G) compare the findings of the demonstration
program with respect to participants to comparison
groups (of similar size and demographics) that did not
participate in the demonstration program; and
``(H) identify the impact of the demonstration
program on the parents of students eligible to
participate in the program.
``(4) Dissemination.-- [NOTE: Reports.] The findings of
the evaluation shall be reported to the Secretary, who shall
widely disseminate the findings to the public.

``(f) Targeted Information Campaign.--
``(1) In general.--Each State educational agency receiving a
grant under this section shall, in cooperation with the
participating local educational agencies within the State and
the Secretary, develop a targeted information campaign for the
demonstration project assisted under this section.
``(2) Plan.--Each State educational agency receiving a grant
under this section shall include in the application submitted
under subsection (c) a written plan for the State educational
agency proposed targeted information campaign. The plan shall
include the following:

[[Page 3444]]
122 STAT. 3444

``(A) Outreach.--A description of the outreach to
students and the students' families at the beginning and
end of each academic year of the demonstration project,
at a minimum.
``(B) Distribution.--A description of how the State
educational agency plans to provide the outreach
described in subparagraph (A) and to provide the
information described in subparagraph (C).
``(C) Information.--The annual provision by the
State educational agency to all students and families
participating in the demonstration project of
information regarding--
``(i) the estimated statewide average cost of
attendance for an institution of higher education
for each academic year, which cost data shall be
disaggregated by--
``(I) type of institution,
including--
``(aa) two-year public
degree-granting institutions of
higher education;
``(bb) four-year public
degree-granting institutions of
higher education; and
``(cc) four-year private
degree-granting institutions of
higher education;
``(II) component, including--
``(aa) tuition and fees; and
``(bb) room and board;
``(ii) Federal Pell Grants, including--
``(I) the maximum Federal Pell Grant
for each award year;
``(II) when and how to apply for a
Federal Pell Grant; and
``(III) what the application process
for a Federal Pell Grant requires;
``(iii) State-specific postsecondary education
savings programs;
``(iv) State merit-based financial aid;
``(v) State need-based financial aid; and
``(vi) Federal financial aid available to
students, including eligibility criteria for such
aid and an explanation of the Federal financial
aid programs under title IV, such as the Student
Guide published by the Department (or any
successor to such document).
``(3) Cohorts.-- [NOTE: Deadline.] The information
described in paragraph (2)(C) shall be provided annually to the
two successive cohorts of students described in subsection
(b)(1)(A) for the duration of the students' participation in the
demonstration project.
``(4) Reservation.--Each State educational agency receiving
a grant under this section shall reserve not more than 15
percent of the grant funds received each fiscal year to carry
out the targeted information campaign described in this
subsection.

``(g) Supplement, Not Supplant.--A State educational agency shall
use grant funds received under this section only to supplement the funds
that would, in the absence of such grant funds, be made available from
non-Federal sources for students participating in the demonstration
project under this section, and not to supplant such funds.

[[Page 3445]]
122 STAT. 3445

``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2009 and each of the five succeeding fiscal years.

``PART Z-- [NOTE: Hawaii.] HENRY KUUALOHA GIUGNI KUPUNA MEMORIAL
ARCHIVES
``SEC. 895. [NOTE: 20 USC 1161z.] HENRY KUUALOHA GIUGNI KUPUNA
MEMORIAL ARCHIVES.

``(a) Grants Authorized.--From the amounts appropriated under
subsection (c), the Secretary is authorized to award a grant to the
University of Hawaii Academy for Creative Media for the establishment,
maintenance, and periodic modernization of the Henry Kuualoha Giugni
Kupuna Memorial Archives at the University of Hawaii.
``(b) Use of Funds.--The Henry Kuualoha Giugni Kupuna Memorial
Archives shall use the grant funds received under this section--
``(1) to facilitate the acquisition of a secure web-
accessible repository of Native Hawaiian historical data rich in
ethnic and cultural significance to the United States for
preservation and access by future generations;
``(2) to award scholarships to facilitate access to
postsecondary education for students who cannot afford such
education;
``(3) to support programmatic efforts associated with the
web-based media projects of the archives;
``(4) to create educational materials, from the contents of
the archives, that are applicable to a broad range of indigenous
students, such as Native Hawaiians, Alaskan Natives, and Native
American Indians;
``(5) to develop outreach initiatives that introduce the
archival collections to elementary schools and secondary
schools;
``(6) to develop supplemental web-based resources that
define terms and cultural practices innate to Native Hawaiians;
``(7) to rent, lease, purchase, maintain, or repair
educational facilities to house the archival collections;
``(8) to rent, lease, purchase, maintain, or repair computer
equipment for use by elementary schools and secondary schools in
accessing the archival collections;
``(9)
to [NOTE: Native Hawaiians. Alaska Natives. Native Americans.]
provide preservice and in-service teacher training to develop a
core group of kindergarten through grade 12 teachers who are
able to provide instruction in a way that is relevant to the
unique background of indigenous students, such as Native
Hawaiians, Alaskan Natives, and Native American Indians, in
order to--
``(A) facilitate greater understanding by teachers
of the unique background of indigenous students; and
``(B) improve student achievement; and
``(10) to increase the economic and financial literacy of
postsecondary education students through the dissemination of
best practices used at other institutions of higher education
regarding debt and credit management and economic
decisionmaking.

``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may

[[Page 3446]]
122 STAT. 3446

be necessary for fiscal year 2009 and each of the five succeeding fiscal
years.

``PART AA--MASTERS AND POSTBACCALAUREATE PROGRAMS

``SEC. 897. [NOTE: Appropriations authorization. 20 USC
1161aa.] MASTERS DEGREE PROGRAMS.

``In addition to any amounts appropriated under section 725, there
are authorized to be appropriated, and there are appropriated, out of
any funds in the Treasury not otherwise appropriated, $11,500,000 for
fiscal year 2009 and for each of the five succeeding fiscal years to
carry out subpart 4 of part A of title VII in order to provide grants
under sections 723 and 724, in the minimum amount authorized under such
sections, to all institutions eligible for grants under such sections.
``SEC. 898. [NOTE: Appropriations authorization. 20 USC 1161aa-
1.] POSTBACCALAUREATE PROGRAMS.

``In addition to any amounts appropriated under part B of title V,
there are authorized to be appropriated, and there are appropriated, out
of any funds in the Treasury not otherwise appropriated, $11,500,000 for
fiscal year 2009 and for each of the five succeeding fiscal years to
carry out part B of title V.''.
SEC. 802. [NOTE: 20 USC 9631.] NATIONAL CENTER FOR RESEARCH IN
ADVANCED INFORMATION AND DIGITAL
TECHNOLOGIES.

(a) Establishment.--There shall be established, during the first
fiscal year for which appropriations are made available under subsection
(c), a nonprofit corporation to be known as the National Center for
Research in Advanced Information and Digital Technologies, which shall
not be an agency or establishment of the Federal Government. The Center
shall be subject to the provisions of this section, and, to the extent
consistent with this section, to the District of Columbia Nonprofit
Corporation Act (sec. 29-501 et seq., D.C. Official Code).
(b) Purpose.--The purpose of the Center shall be to support a
comprehensive research and development program to harness the increasing
capacity of advanced information and digital technologies to improve all
levels of learning and education, formal and informal, in order to
provide Americans with the knowledge and skills needed to compete in the
global economy.
(c) Funding.--
(1) Authorization of appropriations.--There are authorized
to be appropriated to the Center such sums as may be necessary
for fiscal year 2009 and each of the five succeeding fiscal
years.
(2) Additional funds.--The Center is authorized--
(A) to accept funds from any Federal agency or
entity;
(B) to accept, hold, administer, and spend any gift,
devise, or bequest of real or personal property made to
the Center; and
(C) to enter into competitive contracts with
individuals, public or private organizations,
professional societies, and government agencies for the
purpose of carrying out the functions of the Center.
(3) Prohibition.--The Center shall not accept gifts,
devises, or bequests from a foreign government or foreign
source.

[[Page 3447]]
122 STAT. 3447

(d) Board of Directors; Vacancies; Compensation.--
(1) In general.--A Board of the Center shall be established
to oversee the administration of the Center.
(2) Initial composition.--The initial Board shall consist of
nine members to be appointed by the Secretary of Education from
recommendations received from the Speaker of the House of
Representatives, the Minority Leader of the House of
Representatives, the majority leader of the Senate, and the
minority leader of the Senate, who--
(A) reflect representation from the public and
private sectors;
(B) shall provide, as nearly as practicable, a broad
representation of various regions of the United States,
various professions and occupations, and various kinds
of talent and experience appropriate to the functions
and responsibilities of the Center;
(C) shall not be in a position to benefit
financially directly from the contracts and grants to
eligible institutions under subsection (f)(2); and
(D) may not be officers or employees of the Federal
Government or a Members of Congress serving at the time
of such appointment.
(3) Vacancies and subsequent appointments.--To the extent
not inconsistent with paragraph (2), in the case of a vacancy on
the Board due to death, resignation, or removal, the vacancy
shall be filled through nomination and selection by the sitting
members of the Board after--
(A) taking into consideration the composition of the
Board; and
(B) soliciting recommendations from the public.
(4) Compensation.--Members of the Board shall serve without
compensation but may be reimbursed for reasonable expenses for
transportation, lodging, and other expenses directly related to
their duties as members of the Board.
(5) Organization [NOTE: District of Columbia. Taxes.] and
operation.--The Board shall incorporate and operate the Center
in accordance with the laws governing tax exempt organizations
in the District of Columbia.

(e) Director and Staff.--
(1) Director.-- [NOTE: Appointments.] The Board shall
appoint a Director of the Center after conducting a national,
competitive search to find an individual with the appropriate
expertise, experience, and knowledge to oversee the operations
of the Center.
(2) Staff.--In accordance with procedures established by the
Board, the Director shall employ individuals to carry out the
functions of the Center.
(3) Compensation.--In no case shall the Director or any
employee of the Center receive annual compensation that exceeds
an amount equal to the annual rate payable for level II of the
Executive Schedule under section 5313 of title 5, United States
Code.

(f) Center Activities.--
(1) Uses of funds.--The Director, after consultation with
the Board, shall use the funds made available to the Center--
(A) to support research to improve education,
teaching, and learning that is in the public interest,
but that is determined unlikely to be undertaken
entirely with private funds;

[[Page 3448]]
122 STAT. 3448

(B) to support--
(i) precompetitive research, development, and
demonstrations;
(ii) assessments of prototypes of innovative
digital learning and information technologies, as
well as the components and tools needed to create
such technologies; and
(iii) pilot testing and evaluation of
prototype systems described in clause (ii); and
(C) to encourage the widespread adoption and use of
effective, innovative digital approaches to improving
education, teaching, and learning.
(2) Contracts and grants.--
(A) In general.--To carry out the activities
described in paragraph (1), the Director, with the
agreement of two-thirds of the members of the Board, may
award, on a competitive basis, contracts and grants to
four-year institutions of higher education, museums,
libraries, nonprofit organizations, public institutions
with or without for-profit partners, for-profit
organizations, and consortia of any such entities.
(B) Public domain.--
(i) In general.--The research and development
properties and materials associated with any
project funded by a grant or contract under this
section shall be freely and nonexclusively
available to the general public in a timely
manner, consistent with regulations prescribed by
the Secretary of Education.
(ii) Exemption.--The Director may waive the
requirements of clause (i) with respect to a
project funded by a grant or contract under this
section if--
(I) the Director and the Board (by a
unanimous vote of the Board members)
determine that the general public will
benefit significantly due to the project
not being freely and nonexclusively
available to the general public in a
timely manner; and
(II) the Board issues a public
statement as to the specific reasons of
the determination under subclause (I).
(C) Peer review.--
[NOTE: Grants. Contracts.] Proposals for grants or
contracts shall be evaluated on the basis of comparative
merit by panels of experts who represent diverse
interests and perspectives, and who are appointed by the
Director based on recommendations from the fields served
and from the Board.

(g) Accountability and Reporting.--
(1) Report.--
(A) In general.--Not later than December 30 of each
year beginning in fiscal year 2009, the Director shall
prepare and submit to the Secretary of Education and the
authorizing committees a report that contains the
information described in subparagraph (B) with respect
to the preceding fiscal year.
(B) Contents.--A report under subparagraph (A) shall
include--

[[Page 3449]]
122 STAT. 3449

(i) a comprehensive and detailed report of the
Center's operations, activities, financial
condition, and accomplishments, and such
recommendations as the Director determines
appropriate;
(ii) evidence of coordination with the
Department of Education, the National Science
Foundation, Office of the Director of Defense
Research and Engineering in the Department of
Defense, and other related Federal agencies to
carry out the operations and activities of the
Center;
(iii) a comprehensive and detailed inventory
of funds distributed from the Center during the
fiscal year for which the report is being
prepared; and
(iv) an independent audit of the Center's
finances and operations, and of the implementation
of the goals established by the Board.
(C) Statement of the board.--Each report under
subparagraph (A) shall include a statement from the
Board containing--
(i) a clear description of the plans and
priorities of the Board for the subsequent year
for activities of the Center; and
(ii) an estimate of the funds that will be
expended by the Center for such year.
(2) Testimony.--The Director and principal officers of the
Center shall testify before the authorizing committees and the
Committees on Appropriations of the House of Representatives and
the Senate, upon request of such committees, with respect to--
(A) any report required under paragraph (1)(A); and
(B) any other matter that such committees may
determine appropriate.

(h) Use of Funds Subject to Appropriations.--The authority to award
grants, enter into contracts, or otherwise expend funds under this
section is subject to the availability of amounts deposited into the
Center under subsection (c), or amounts otherwise appropriated for such
purposes by an Act of Congress.
(i) Definitions.--For purposes of this section:
(1) Authorizing committees.--The term ``authorizing
committees'' has the meaning given the term in section 103 of
the Higher Education Act of 1965 (20 U.S.C. 1003).
(2) Board.--The term ``Board'' means the Board of the Center
appointed under subsection (d)(1).
(3) Center.--The term ``Center'' means the National Center
for Research in Advanced Information and Digital Technologies
established under subsection (a).
(4) Director.--The term ``Director'' means the Director of
the Center appointed under subsection (e)(1).
SEC. 803. [NOTE: 20 USC 1015b note.] ESTABLISHMENT OF PILOT
PROGRAM FOR COURSE MATERIAL RENTAL.

(a) Pilot Grant Program.--From the amounts appropriated pursuant to
subsection (e), the Secretary of Education (referred to in this section
as the ``Secretary'') shall make grants on a competitive basis to not
more than ten institutions of higher education to support pilot programs
that expand the services of bookstores

[[Page 3450]]
122 STAT. 3450

to provide the option for students to rent course materials in order to
achieve savings for students.
(b) Application.--An institution of higher education that desires to
obtain a grant under this section shall submit an application to the
Secretary at such time, in such form, and containing or accompanied by
such information, agreements, and assurances as the Secretary may
reasonably require.
(c) Use of Funds.--The funds made available by a grant under this
section may be used for--
(1) purchase of course materials that the entity will make
available by rent to students;
(2) any equipment or software necessary for the conduct of a
rental program;
(3) hiring staff needed for the conduct of a rental program,
with priority given to hiring enrolled undergraduate students;
and
(4) building or acquiring extra storage space dedicated to
course materials for rent.

(d) Evaluation and Report.--
(1) Evaluations by recipients.--After a period of time to be
determined by the Secretary, each institution of higher
education that receives a grant under this section shall submit
a report to the Secretary on the effectiveness of their rental
programs in reducing textbook costs for students.
(2) Report to congress.--Not later than September 30, 2010,
the Secretary shall submit a report to Congress on the
effectiveness of the textbook rental pilot programs under this
section, and identify the best practices developed in such pilot
programs. Such report shall contain an estimate by the Secretary
of the savings achieved by students who participate in such
pilot programs.

(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal years 2009 and 2010.

TITLE IX--AMENDMENTS TO OTHER LAWS

PART A--EDUCATION OF THE DEAF ACT OF 1986

SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

Section 104 of the Education of the Deaf Act of 1986 (20 U.S.C.
4304) is amended--
(1) by striking the section heading and inserting ``laurent
clerc national deaf education center'';
(2) in subsection (a)(1)(A), by inserting ``the Laurent
Clerc National Deaf Education Center (referred to in this
section as the `Clerc Center') to carry out'' after ``maintain
and operate''; and
(3) in subsection (b)--
(A) in the matter preceding subparagraph (A) of
paragraph (1), by striking ``elementary and secondary
education programs'' and inserting ``Clerc Center'';
(B) in paragraph (2)--

[[Page 3451]]
122 STAT. 3451

(i) by striking ``elementary and secondary
education programs'' and inserting ``Clerc
Center''; and
(ii) by striking ``section 618(a)(1)(A)'' and
inserting ``section 618(a)(1)'';
(C) in paragraph (4), in subparagraph (C)--
(i) by moving the margins 2 ems to the left;
(ii) in clause (i), by striking ``(6)'' and
inserting ``(8)''; and
(iii) in clause (vi), by striking ``(m)'' and
inserting ``(o)''; and
(D) by adding at the end the following:

``(5) The University, for purposes of the elementary and secondary
education programs carried out at the Clerc Center, shall--
``(A)(i) select [NOTE: Standards.] 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 [NOTE: Deadline.] standards and
assessments for such programs by not later than the beginning of
the 2009-2010 academic year;
``(B) annually [NOTE: Deadline.] 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 [NOTE: Reports.] the results of the
academic assessments implemented under subparagraph (A), except
where such reporting would not yield statistically reliable
information or would reveal personally identifiable information
about an individual student, and whether the programs at the
Clerc Center are making adequate yearly progress, as determined
under subparagraph (B).''.
SEC. 902. AGREEMENT WITH GALLAUDET UNIVERSITY.

Section 105(b)(4) of the Education of the Deaf Act of 1986 (20
U.S.C. 4305(b)(4)) is amended--
(1) by striking ``the Act of March 3, 1931 (40 U.S.C. 276a-
276a-5) commonly referred to as the Davis-Bacon Act'' and
inserting ``subchapter IV of chapter 31 of title 40, United
States Code, commonly referred to as the Davis-Bacon Act''; and
(2) by striking ``section 2 of the Act of June 13, 1934 (40
U.S.C. 276c)'' and inserting ``section 3145 of title 40, United
States Code''.
SEC. 903. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE
DEAF.

Section 112 of the Education of the Deaf Act of 1986 (20 U.S.C.
4332) is amended--
(1) in subsection (a)(1), by striking the second sentence;
and
(2) in subsection (b)--

[[Page 3452]]
122 STAT. 3452

(A) in paragraph (3), by striking ``Committee on
Labor and Human Resources of the Senate'' and inserting
``Committee on Health, Education, Labor, and Pensions of
the Senate''; and
(B) in paragraph (5)--
(i) by striking ``the Act of March 3, 1931 (40
U.S.C. 276a--276a-5) commonly referred to as the
Davis-Bacon Act'' and inserting ``subchapter IV of
chapter 31 of title 40, United States Code,
commonly referred to as the Davis-Bacon Act''; and
(ii) by striking ``section 2 of the Act of
June 13, 1934 (40 U.S.C. 276c)'' and inserting
``section 3145 of title 40, United States Code''.
SEC. 904. CULTURAL EXPERIENCES GRANTS.

(a) Cultural Experiences Grants.--Title I of the Education of the
Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended by adding at the
end the following:

``PART C--OTHER PROGRAMS

``SEC. 121. [NOTE: 20 USC 4341.] CULTURAL EXPERIENCES GRANTS.

``(a) In [NOTE: Contracts.] General.--The Secretary is authorized
to, 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 2009 and each of the five succeeding fiscal years.''.
(b) Conforming Amendment.--The title heading of title I of the
Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended by
adding at the end the following: ``; OTHER PROGRAMS''.
SEC. 905. AUDIT.

Section 203 of the Education of the Deaf Act of 1986 (20 U.S.C.
4353) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``sections'' and
all that follows through the period and inserting
``sections

[[Page 3453]]
122 STAT. 3453

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.''; and
(B) in paragraph (3), by inserting ``and the
Committee on Education and Labor of the House of
Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate'' after ``Secretary'';
and
(2) in subsection (c)(2)(A), by striking ``Committee on
Labor and Human Resources of the Senate'' and inserting
``Committee on Health, Education, Labor, and Pensions of the
Senate''.
SEC. 906. REPORTS.

Section 204 of the Education of the Deaf Act of 1986 (20 U.S.C.
4354) is amended--
(1) in the matter preceding paragraph (1), by striking
``Committee on Labor and Human Resources of the Senate'' and
inserting ``Committee on Health, Education, Labor, and Pensions
of the Senate'';
(2) in paragraph (1), by striking ``preparatory,'';
(3) in paragraph (2)(C), by striking ``upon graduation/
completion'' and inserting ``on the date that is one year after
the date of graduation or completion''; and
(4) in paragraph (3)(B), by striking ``of the institution of
higher education'' and all that follows through ``section 203''
and inserting ``of NTID programs and activities''.
SEC. 907. MONITORING, EVALUATION, AND REPORTING.

Section 205 of the Education of the Deaf Act of 1986 (20 U.S.C.
4355) is amended--
(1) in the first sentence of subsection (a), by striking
``preparatory,'';
(2) in subsection (b), by striking ``The Secretary, as part
of the annual report required under section 426 of the
Department of Education Organization Act, shall include a
description of'' and inserting ``The Secretary shall annually
transmit information to Congress on''; and
(3) in [NOTE: Appropriations authorization.] subsection
(c), by striking ``fiscal years 1998 through 2003'' and
inserting ``fiscal years 2009 through 2014''.
SEC. 908. [NOTE: Designation. Deadline.] LIAISON FOR EDUCATIONAL
PROGRAMS.

Section 206(a) of the Education of the Deaf Act of 1986 (20 U.S.C.
4356(a)) is amended by striking ``Not later than 30 days after the date
of enactment of this Act, the'' and inserting ``The''.
SEC. 909. [NOTE: Appropriations authorization.] FEDERAL
ENDOWMENT PROGRAMS FOR GALLAUDET
UNIVERSITY AND THE NATIONAL TECHNICAL
INSTITUTE FOR THE DEAF.

Section 207(h) of the Education of the Deaf Act of 1986 (20 U.S.C.
4357(h)) is amended by striking ``fiscal years 1998 through 2003'' both
places it appears and inserting ``fiscal years 2009 through 2014''.
SEC. 910. OVERSIGHT AND EFFECT OF AGREEMENTS.

Section 208(a) of the Education of the Deaf Act of 1986 (20 U.S.C.
4359(a)) is amended by striking ``Committee on Labor and Human Resources
of the Senate and the Committee on Education and the Workforce of the
House of Representatives'' and inserting ``Committee on Education and
Labor of the House of Representatives

[[Page 3454]]
122 STAT. 3454

and the Committee on Health, Education, Labor, and Pensions of the
Senate''.
SEC. 911. INTERNATIONAL STUDENTS.

Section 209 of the Education of the Deaf Act of 1986 (20 U.S.C.
4359a) is amended--
(1) in subsection (a)--
(A) by striking ``preparatory, undergraduate,'' and
inserting ``undergraduate'';
(B) by striking ``Effective with'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2),
effective with''; and
(C) by adding at the end the following:
``(2) Distance learning.--International students who
participate in distance learning courses that are at the
University or the NTID, who are residing outside of the United
States, and are not enrolled in a degree program at the
University or the NTID 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).''; and
(2) by striking subsections (b), (c), and (d), and inserting
the following:

``(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 2009-2010 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, or a country that was a developing
country for any academic year during the student's period of
uninterrupted enrollment in a degree program at the University
or NTID, except that such a surcharge shall not be adjusted
retroactively.

``(c) Reduction of Surcharge.--
``(1) In general.--Beginning with the academic year 2009-
2010, the University or NTID may reduce the surcharge--
``(A) under subsection (b)(1) from 100 percent to
not less than 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) from 50 percent to not
less than 25 percent if--
``(i) a student described under subsection
(b)(2) demonstrates need; and

[[Page 3455]]
122 STAT. 3455

``(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 $5,345,
measured in 2005 United States dollars, as adjusted by the Secretary to
reflect inflation since 2005.''.
SEC. 912. RESEARCH PRIORITIES.

Section 210(b) of the Education of the Deaf Act of 1986 (20 U.S.C.
4359b(b)) is amended by striking ``Committee on Education and the
Workforce of the House of Representatives, and the Committee on Labor
and Human Resources of the Senate'' and inserting ``Committee on
Education and Labor of the House of Representatives, and the Committee
on Health, Education, Labor, and Pensions of the Senate''.
SEC. 913. NATIONAL STUDY ON THE EDUCATION OF THE DEAF.

(a) Conduct [NOTE: Establishment.] of Study.--Subsection (a)(1) of
section 211 of the Education of the Deaf Act of