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

122 STAT. 740

Public Law 110-227
110th Congress

An Act


 
To ensure continued availability of access to the Federal student loan
program for students and families. [NOTE: May 7, 2008 -  [H.R. 5715]]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress [NOTE: Ensuring Continued Access
to Student Loans Act of 2008.] assembled,
SECTION 1. [NOTE: 20 USC 1001 note.] SHORT TITLE.

This title may be cited as the ``Ensuring Continued Access to
Student Loans Act of 2008''.
SEC. 2. INCREASING UNSUBSIDIZED STAFFORD LOAN LIMITS FOR
UNDERGRADUATE STUDENTS.

(a) Amendments.--Subsection (d) of section 428H of the Higher
Education Act of 1965 (20 U.S.C. 1078-8(d)) is amended to read as
follows:
``(d) Loan Limits.--
``(1) In general.--Except as provided in paragraphs (2),
(3), and (4), the annual and aggregate limits for loans under
this section shall be the same as those established under
section 428(b)(1), less any amount received by such student
pursuant to the subsidized loan program established under
section 428.
``(2) Limits for graduate and professional students.--
``(A) Annual limits.--The maximum annual amount of
loans under this section a graduate or professional
student may borrow in any academic year (as defined in
section 481(a)(2)) or its equivalent shall be the amount
determined under paragraph (1), plus--
``(i) in the case of such a student who is a
graduate or professional student attending an
eligible institution, $12,000; and
``(ii) in the case of a graduate student
enrolled in coursework specified in sections
484(b)(3)(B) and 484(b)(4)(B), $7,000;
except in cases where the Secretary determines that a
higher amount is warranted in order to carry out the
purpose of this part with respect to students engaged in
specialized training requiring exceptionally high costs
of education, but the annual insurable limit per student
shall not be deemed to be exceeded by a line of credit
under which actual payments by the lender to the
borrower will not be made in any years in excess of the
annual limit.
``(B) Aggregate limit.--The maximum aggregate amount
of loans under this section a student described in
subparagraph (A) may borrow shall be the amount
described in paragraph (1), adjusted to reflect the
increased

[[Page 741]]
122 STAT. 741

annual limits described in subparagraph (A), as
prescribed by the Secretary by regulation.
``(3) Limits for undergraduate dependent students.--
``(A) Annual limits.--The maximum annual amount of
loans under this section an undergraduate dependent
student (except an undergraduate dependent student whose
parents are unable to borrow under section 428B or the
Federal Direct PLUS Loan Program) may borrow in any
academic year (as defined in section 481(a)(2)) or its
equivalent shall be the sum of the amount determined
under paragraph (1), plus $2,000.
``(B) Aggregate limits.--The maximum aggregate
amount of loans under this section a student described
in subparagraph (A) may borrow shall be $31,000.
``(4) Limits for undergraduate independent students.--
``(A) Annual limits.--The maximum annual amount of
loans under this section an undergraduate independent
student, or an undergraduate dependent student whose
parents are unable to borrow under section 428B or the
Federal Direct PLUS Loan Program, may borrow in any
academic year (as defined in section 481(a)(2)) or its
equivalent shall be the sum of the amount determined
under paragraph (1), plus--
``(i) in the case of such a student attending
an eligible institution who has not completed such
student's first 2 years of undergraduate study--
``(I) $6,000, if such student is
enrolled in a program whose length is at
least one academic year in length; or
``(II) if such student is enrolled
in a program of undergraduate education
which is less than one academic year,
the maximum annual loan amount that such
student may receive may not exceed the
amount that bears the same ratio to the
amount specified in subclause (I) as the
length of such program measured in
semester, trimester, quarter, or clock
hours bears to one academic year;
``(ii) in the case of such a student at an
eligible institution who has successfully
completed such first and second years but has not
successfully completed the remainder of a program
of undergraduate education--
``(I) $7,000; or
``(II) if such student is enrolled
in a program of undergraduate education,
the remainder of which is less than one
academic year, the maximum annual loan
amount that such student may receive may
not exceed the amount that bears the
same ratio to the amount specified in
subclause (I) as such remainder measured
in semester, trimester, quarter, or
clock hours bears to one academic year;
and
``(iii) in the case of such a student enrolled
in coursework specified in sections 484(b)(3)(B)
and 484(b)(4)(B), $6,000 for coursework necessary
for

[[Page 742]]
122 STAT. 742

enrollment in an undergraduate degree or
certificate program.
``(B) Aggregate limits.--The maximum aggregate
amount of loans under this section a student described
in subparagraph (A) may borrow shall be $57,500.
``(5) Capitalized interest.--Interest capitalized shall not
be deemed to exceed a maximum aggregate amount determined under
subparagraph (B) of paragraph (2), (3), or (4).''.

(b) Student Eligibility.--Loan [NOTE: 20 USC 1078-8 note.] limit
increases authorized by the amendments made by this section shall be
available only to students who meet the requirements of section 484(a)
of the Higher Education Act of 1965 (20 U.S.C. 1091(a)).

(c) Effective Date.--The [NOTE: 20 USC 1078-8 note.] amendments
made by this section shall be effective for loans first disbursed on or
after July 1, 2008.
SEC. 3. GRACE PERIOD FOR PARENT PLUS LOANS.

(a) Amendment.--Section 428B(d) of the Higher Education Act of 1965
(20 U.S.C. 1078-2(d)) is amended by amending paragraphs (1) and (2) to
read as follows:
``(1) Commencement of repayment.--Repayment of principal on
loans made under this section shall--
``(A) commence not later than--
``(i) 60 days after the date such loan is
disbursed by the lender, except as provided in
clause (ii); and
``(ii) if agreed upon by a parent borrower,
the day after 6 months after the date the student
for whom the loan is borrowed ceases to carry at
least one-half the normal full-time academic
workload (as determined by the institution); and
``(B) be subject to deferral during any period
during which the graduate or professional student or the
parent meets the conditions required for a deferral
under section 427(a)(2)(C) or 428(b)(1)(M).
``(2) Capitalization of interest.--
``(A) In general.--Interest on loans made under this
section--
``(i) which accrues prior to the beginning of
repayment under paragraph (1)(A)(i), shall be
added to the principal amount of the loan; and
``(ii) which accrues prior to the beginning of
repayment under paragraph (1)(A)(ii) or during a
period in which payments of principal are deferred
pursuant to paragraph (1)(B) 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) of such Act (20
U.S.C. 1078(b)(7)(C)) is amended by striking ``, 428B,''.
(c) Effective Date.--The [NOTE: 20 USC 1078 note.] amendments made
by this section shall be effective for loans first disbursed on or after
July 1, 2008.

[[Page 743]]
122 STAT. 743

SEC. 4. SPECIAL RULES FOR PLUS LOANS.

Section 428B(a)(3) of the Higher Education Act of 1965 (20 U.S.C.
1078-2(a)(3)) is amended to read as follows:
``(3) Special rules.--
``(A) Parent borrowers.--Whenever necessary to carry
out the provisions of this section, the terms `student'
and `borrower' as used in this part shall include a
parent borrower under this section.
``(B)(i) Extenuating circumstances.--An eligible
lender may determine that extenuating circumstances
exist under the regulations promulgated pursuant to
paragraph (1)(A) if, during the period beginning January
1, 2007, and ending December 31, 2009, an applicant for
a loan under this section--
``(I) is or has been delinquent for 180 days
or fewer on mortgage loan payments or on medical
bill payments during such period; and
``(II) is not and has not been more than 89
days delinquent on the repayment of any other debt
during such period.
``(ii) Definition of mortgage loan.--In this
subparagraph, the term `mortgage loan' means an
extension of credit to a borrower that is secured by the
primary residence of the borrower.
``(iii) Rule of construction.--Nothing in this
subparagraph shall be construed to limit an eligible
lender's authority under the regulations promulgated
pursuant to paragraph (1)(A) to determine that
extenuating circumstances exist.''.
SEC. 5. LENDER-OF-LAST-RESORT.

(a) In General.--Section 428(j) of the Higher Education Act of 1965
(20 U.S.C. 1078(j)) is amended--
(1) in the first sentence of paragraph (1), by striking
``students eligible to receive interest benefits paid on their
behalf under subsection (a) of this section who are otherwise
unable to obtain loans under this part'' and inserting
``eligible students and parents who are otherwise unable to
obtain loans under this part (except for consolidation loans
under section 428C) or who attend an institution of higher
education in the State that is designated under paragraph (4)'';
(1) in paragraph (1), by inserting after the second sentence
the following: ``No loan under section 428, 428B, or 428H that
is made pursuant to this subsection shall be made with interest
rates, origination or default fees, or other terms and
conditions that are more favorable to the borrower than the
maximum interest rates, origination or default fees, or other
terms and conditions applicable to that type of loan under this
part.'';
(2) in paragraph (2)(B), by inserting ``, in the case of
students and parents applying for loans under this subsection
because of an inability to otherwise obtain loans under this
part (except for consolidation loans under section 428C),''
after ``lender, nor'';
(3) in paragraph (3)(C)--
(A) in the first sentence, by inserting ``or
designates an institution of higher education for
participation in the

[[Page 744]]
122 STAT. 744

program under this subsection under paragraph (4)''
after ``under this part''; and
(B) in the third sentence, by inserting ``or to
eligible borrowers who attend an institution in the
State that is designated under paragraph (4)'' after
``problems''; and
(4) by adding at the end the following:
``(4) Institution-wide
student [NOTE: Designation.] qualification.--Upon the request
of an institution of higher education and pursuant to standards
developed by the Secretary, the Secretary shall designate such
institution for participation in the lender-of-last-resort
program under this paragraph. If the Secretary designates an
institution under this paragraph, the guaranty agency designated
for the State in which the institution is located shall make
loans, in the same manner as such loans are made under paragraph
(1), to students and parent borrowers of the designated
institution, regardless of whether the students or parent
borrowers are otherwise unable to obtain loans under this part
(other than a consolidation loan under section 428C).
``(5) Standards developed by the secretary.--In developing
standards with respect to paragraph (4), the Secretary may
require--
``(A) an institution of higher education to
demonstrate that, despite due diligence on the part of
the institution, the institution has been unable to
secure the commitment of eligible lenders willing to
make loans under this part to a significant number of
students attending the institution;
``(B) that, prior to making a request under such
paragraph for designation for participation in the
lender-of-last-resort program, an institution of higher
education shall demonstrate that the institution has met
a minimum threshold, as determined by the Secretary, for
the number or percentage of students at such institution
who have received rejections from eligible lenders for
loans under this part; and
``(C) any other standards and guidelines the
Secretary determines to be appropriate.
``(6) Expiration of authority.--The Secretary's authority
under paragraph (4) to designate institutions of higher
education for participation in the program under this subsection
shall expire on June 30, 2009.
``(7) Expiration of designation.--The eligibility of an
institution of higher education, or borrowers from such
institution, to participate in the program under this subsection
pursuant to a designation of the institution by the Secretary
under paragraph (4) shall expire on June 30, 2009. After such
date, borrowers from an institution designated under paragraph
(4) shall be eligible to participate in the program under this
subsection as such program existed on the day before the date of
enactment of the Ensuring Continued Access to Student Loans Act
of 2008.
``(8) Prohibition on inducements and marketing.--Each
guaranty agency or eligible lender that serves as a lender-of-
last-resort under this subsection--

[[Page 745]]
122 STAT. 745

``(A) shall be subject to the prohibitions on
inducements contained in subsection (b)(3) and the
requirements of section 435(d)(5); and
``(B) shall not advertise, market, or otherwise
promote loans under this subsection, except that nothing
in this paragraph shall prohibit a guaranty agency from
fulfilling its responsibilities under paragraph (2)(C).
``(9) Dissemination and reporting.--
``(A) In general.--The [NOTE: Public
information.] Secretary shall--
``(i) broadly disseminate information
regarding the availability of loans made under
this subsection;
``(ii) during the period beginning July 1,
2008 and ending June 30, 2010, provide to the
Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on
Education and Labor of the House of
Representatives and make available to the public--
``(I) copies of any new or revised
plans or agreements made by guaranty
agencies or the Department related to
the authorities under this subsection;
``(II) quarterly reports on--
``(aa) the number and
amounts of loans originated or
approved pursuant to this
subsection by each guaranty
agency and eligible lender; and
``(bb) any related payments
by the Department, a guaranty
agency, or an eligible lender;
and
``(III) a budget estimate of the
costs to the Federal Government
(including subsidy and administrative
costs) for each 100 dollars loaned, of
loans made pursuant to this subsection
between the date of enactment of the
Ensuring Continued Access to Student
Loans Act of 2008 and June 30, 2009,
disaggregated by type of loan, compared
to such costs to the Federal Government
during such time period of comparable
loans under this part and part D,
disaggregated by part and by type of
loan; and
``(iii) beginning [NOTE: Effective
date.] July 1, 2010, provide to the Committee on
Health, Education, Labor, and Pensions of the
Senate and the Committee on Education and Labor of
the House of Representatives and make available to
the public--
``(I) copies of any new or revised
plans or agreements made by guaranty
agencies or the Department related to
the authorities under this subsection;
and
``(II) annual reports on--
``(aa) the number and
amounts of loans originated or
approved pursuant to this
subsection by each guaranty
agency and eligible lender; and
``(bb) any related payments
by the Department, a guaranty
agency, or an eligible lender.

[[Page 746]]
122 STAT. 746

``(B) Separate reporting.--The information required
to be reported under subparagraph (A)(ii)(II) shall be
reported separately for loans originated or approved
pursuant to paragraph (4), or payments related to such
loans, for the time period in which the Secretary is
authorized to make designations under paragraph (4).''.

(b) Effective Date.--The [NOTE: 20 USC 1078 note.] amendments made
by subsection (a) shall take effect on the date of enactment of this
Act.

(c) Review of Inducements [NOTE: Deadlines. Regulations. 20 USC
1078 note.] Limitations.--Within 90 days after the date of enactment of
this Act, the Secretary of Education shall review, and as necessary
revise, the Department of Education's regulations concerning prohibited
guaranty agency inducements to eligible lenders (34 CFR 682.401(e)) to
ensure that such agencies do not engage in improper inducements in the
expansion of operations of the lender-of-last-resort program as
authorized by the amendments made by this
section. [NOTE: Reports.] The Secretary shall submit a report on the
review and revision required by this subsection to the Committee on
Education and Labor of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate within 180 days
after such date of enactment.
SEC. 6. MANDATORY ADVANCES.

(a) In General.--Section 421(b) of the Higher Education Act of 1965
(20 U.S.C. 1071(b)) is amended--
(1) in paragraph (4), by striking ``programs, and'' and
inserting ``programs,'';
(2) in paragraph (5), by striking ``agencies.'' and
inserting ``agencies, and''; and
(3) by inserting before the matter following paragraph (5)
the following:
``(6) there is [NOTE: Appropriation
authorization.] authorized to be appropriated, and there are
appropriated, out of any money in the Treasury not otherwise
appropriated, such sums as may be necessary for the purpose of
carrying out section 422(c)(7).''.

(b) Effective Date.--The [NOTE: 20 USC 1071 note.] amendments made
by subsection (a) shall take effect on the date of enactment of this
Act.
SEC. 7. TEMPORARY AUTHORITY TO PURCHASE STUDENT LOANS.

(a) Spending Authority.--
(1) Authority granted.--The first sentence of section 451(a)
of the Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is
amended--
(A) by inserting ``(1)'' after ``as may be
necessary''; and
(B) by inserting before the period at the end of
such sentence the following: ``; and (2) for purchasing
loans under section 459A''.
(2) Conforming amendment.--Section 451(a) of such Act (20
U.S.C. 1087a(a)) is further amended by striking ``Such loans
shall'' and inserting ``Loans made under this part shall''.

(b) Temporary Authority.--Part D of title IV of the Higher Education
Act of 1965 (20 U.S.C. 1087a et seq.) is amended by inserting after
section 459 the following new section:
``SEC. 459A. [NOTE: 20 USC 1087i-1.] TEMPORARY AUTHORITY TO
PURCHASE STUDENT LOANS.

``(a) Authority To Purchase.--

[[Page 747]]
122 STAT. 747

``(1) Authority; determination required.--Upon a
determination by the Secretary that there is an inadequate
availability of loan capital to meet the demand for loans under
sections 428, 428B, or 428H, whether as a result of inadequate
liquidity for such loans or for other reasons, the Secretary, in
consultation with the Secretary of the Treasury, is authorized
to purchase, or enter into forward commitments to purchase, from
any eligible lender, as defined by section 435(d)(1), loans
first disbursed under sections 428, 428B, or 428H on or after
October 1, 2003, and before July 1, 2009, on such terms as the
Secretary, the Secretary of the Treasury, and the Director of
the Office of Management and Budget jointly determine are in the
best interest of the United States, except that any purchase
under this section shall not result in any net cost to the
Federal Government (including the cost of servicing the loans
purchased), as determined jointly by the Secretary, the
Secretary of the Treasury, and the Director of the Office of
Management and Budget.
``(2) Federal register notice.--The Secretary, the Secretary
of the Treasury, and the Director of the Office of Management
and Budget, shall jointly publish a notice in the Federal
Register prior to any purchase of loans under this section
that--
``(A) establishes the terms and conditions governing
the purchases authorized by paragraph (1);
``(B) includes an outline of the methodology and
factors that the Secretary, the Secretary of the
Treasury, and the Director of the Office of Management
and Budget, will jointly consider in evaluating the
price at which to purchase loans made under section 428,
428B, or 428H; and
``(C) describes how the use of such methodology and
consideration of such factors used to determine purchase
price will ensure that loan purchases do not result in
any net cost to the Federal Government (including the
cost of servicing the loans purchased).

``(b) Proceeds.--The Secretary shall require, as a condition of any
purchase under subsection (a), that the funds paid by the Secretary to
any eligible lender under this section shall be used: (1) to ensure
continued participation of such lender in the Federal student loan
programs authorized under part B of this title; and (2) to originate new
Federal loans to students, as authorized under part B of this title.
``(c) Maintaining Servicing Arrangements.--The Secretary may, if
agreed upon by an eligible lender selling loans under this section,
contract with such lender for the servicing of the loans purchased,
provided that--
``(1) the cost of such servicing arrangement does not exceed
the cost the Federal Government would otherwise incur for the
servicing of loans purchased, as determined under subsection
(a); and
``(2) such servicing arrangement is in the best interest of
the borrowers whose loans are purchased.

``(d) Expiration of Authority.--The Secretary's authority to
purchase loans under this section shall expire on July 1, 2009.''.
(c) Contracting Authority.--Section 456(b) of the Higher Education
Act of 1965 (20 U.S.C. 1087f(b)) is amended by inserting

[[Page 748]]
122 STAT. 748

``or purchased'' after ``loans made'' each place it appears in
paragraphs (2) and (3).
SEC. 8. SENSE OF CONGRESS.

It is a sense of Congress that, at a time when our economy is
fragile and higher education and retraining opportunities are more
important than ever--
(1) the Federal financial institutions, such as the Federal
Financing Bank and Federal Reserve, and federally chartered
private entities such as the Federal Home Loan Banks and others,
should consider, in consultation with the Secretary of Treasury
and the Secretary of Education, using available authorities in a
timely manner, if needed, to assist in ensuring that students
and families can access Federal student loans for academic year
2008-2009, and if needed in the subsequent academic year, in a
manner that results in no increased costs to taxpayers; and
(2) any action taken as a result of such consideration
should in no way limit or delay the Secretary of Education's
authority to operate the lender-of-last-resort provisions of
section 428(j) of the Higher Education Act of 1965 (as amended
by this Act), nor the authority to purchase Federal Family
Education Loan Program loans, as authorized by section 459A of
such Act (as added by this Act).
SEC. 9. GAO STUDY ON IMPACT OF INCREASED LOAN LIMITS.

(a) Study Required.--The Comptroller General shall conduct a study
to evaluate the impact of the increase in Federal loan limits provided
for in section 2 of this Act and section 8005 of the Deficit Reduction
Act of 2005 with respect to the impact on--
(1) tuition, fees, and room and board at institutions of
higher education; and
(2) private loan borrowing by students and parents for
attendance at institutions of higher education.

(b) Study Components.--The study required under subsection (a) shall
be conducted for each major sector of institutions of higher education
over a 5-year time period. The report shall specifically analyze the
following:
(1) Whether, on average, tuition, fees, and room and board
increase, decrease, or remain unchanged in each such sector
after the increases in Federal loan limits take effect.
(2) Whether the amount of private educational loans taken
out by students (and their parents) at institutions in each such
sector to pay tuition, fees, and room and board increase,
decrease, or remain unchanged.

(c) Report.--Not later than one year after the date of enactment of
this Act, the Comptroller General shall provide an interim report to the
Committee on Education and Labor of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of the Senate
including the initial results of the study conducted under this section.
The Comptroller General shall follow up with such Committees after the
third year and the fifth year after such date of enactment.
SEC. 10. ACADEMIC COMPETITIVENESS GRANTS.

(a) Amendments.--Section 401A of the Higher Education Act of 1965
(20 U.S.C. 1070a-1) is amended--
(1) by striking subsection (a) and inserting the following:

[[Page 749]]
122 STAT. 749

``(a) Academic Competitiveness Grant Program Authorized.--The
Secretary shall award grants, in the amounts specified in subsection
(d)(1), to eligible students to assist the eligible students in paying
their college education expenses.'';
(2) in subsection (b)--
(A) by striking ``academic year'' each place it
appears and inserting ``year''; and
(B) in paragraph (2), by striking ``third or
fourth'' and inserting ``third, fourth, or fifth'';
(3) in subsection (c)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``full-time'';
(ii) by striking ``academic'' and inserting
``award''; and
(iii) by striking ``is made'' and inserting
``is made for a grant under this section'';
(B) by striking paragraphs (1) and (2) and inserting
the following:
``(1) is eligible for a Federal Pell Grant;
``(2) is enrolled or accepted for enrollment in an
institution of higher education on not less than a half-time
basis; and''; and
(C) in paragraph (3)--
(i) by striking ``academic'' each place the
term appears;
(ii) in subparagraph (A)--
(I) by striking the matter preceding
clause (i) and inserting the following:
``(A) the first year of a program of undergraduate
education at a two- or four-year degree-granting
institution of higher education (including a program of
not less than one year for which the institution awards
a
certificate)--'';
(II) by striking clause (i) and
inserting the following:
``(i) has successfully completed, after
January 1, 2006, a rigorous secondary school
program of study that prepares students for
college and is recognized as such by the State
official designated for such recognition, or with
respect to any private or home school, the school
official designated for such recognition for such
school, consistent with State law, which
recognized program shall be reported to the
Secretary; and''; and
(III) in clause (ii), by inserting
``, except as part of a secondary school
program of study'' before the semicolon;
(iii) in subparagraph (B)--
(I) in the matter preceding clause
(i), by striking ``year of'' and all
that follows through ``higher
education'' and inserting ``year of a
program of undergraduate education at a
two- or four-year degree-granting
institution of higher education
(including a program of not less than
two years for which the institution
awards a certificate)''; and

[[Page 750]]
122 STAT. 750

(II) in clause (ii), by striking
``or'' after the semicolon at the end;
(iv) in subparagraph (C)--
(I) in the matter preceding
subclause (I) of clause (i), by
inserting ``certified by the institution
to be'' after ``is'';
(II) by striking clause (i)(II) and
inserting the following:
``(II) a critical foreign language;
and''; and
(III) in clause (ii), by striking
the period at the end and inserting a
semicolon; and
(v) by adding at the end the following:
``(D) the third or fourth year of a program of
undergraduate education at an institution of higher
education (as defined in section 101(a)), is attending
an institution that demonstrates, to the satisfaction of
the Secretary, that the institution--
``(i) offers a single liberal arts curriculum
leading to a baccalaureate degree, under which
students are not permitted by the institution to
declare a major in a particular subject area, and
the student--
``(I)(aa) studies, in such years, a
subject described in subparagraph (C)(i)
that is at least equal to the
requirements for an academic major at an
institution of higher education that
offers a baccalaureate degree in such
subject, as certified by an appropriate
official from the institution; and
``(bb) has obtained a cumulative
grade point average of at least 3.0 (or
the equivalent as determined under
regulations prescribed by the Secretary)
in the relevant coursework; or
``(II) is required, as part of the
student's degree program, to undertake a
rigorous course of study in mathematics,
biology, chemistry, and physics, which
consists of at least--
``(aa) 4 years of study in
mathematics; and
``(bb) 3 years of study in
the sciences, with a laboratory
component in each of those
years; and
``(ii) offered such curriculum prior to
February 8, 2006; or
``(E) the fifth year of a program of undergraduate
education that requires 5 full years of coursework, as
certified by the appropriate official of the degree-
granting institution of higher education, for which a
baccalaureate degree is awarded by a degree-granting
institution of higher education--
``(i) is certified by the institution of
higher education to be pursuing a major in--
``(I) the physical, life, or
computer sciences, mathematics,
technology, or engineering (as
determined by the Secretary pursuant to
regulations); or
``(II) a critical foreign language;
and
``(ii) has obtained a cumulative grade point
average of at least 3.0 (or the equivalent, as
determined under

[[Page 751]]
122 STAT. 751

regulations prescribed by the Secretary) in the
coursework required for the major described in
clause (i).'';
(4) in subsection (d)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by striking ``The'' and
inserting ``In general.--The'';
(II) in clause (ii), by striking
``or'' after the semicolon at the end;
(III) in clause (iii), by striking
``subsection (c)(3)(C).'' and inserting
``subparagraph (C) or (D) of subsection
(c)(3), for each of the two years
described in such subparagraphs; or'';
and
(IV) by adding at the end the
following:
``(iv) $4,000 for an eligible student under
subsection (c)(3)(E).''; and
(ii) in subparagraph (B)--
(I) by striking ``Notwithstanding''
and inserting ``Limitation; ratable
reduction.--Notwithstanding'';
(II) by redesignating clauses (i),
(ii), and (iii), as clauses (ii), (iii),
and (iv), respectively; and
(III) by inserting before clause
(ii), as redesignated under subclause
(II), the following:
``(i) in any case in which a student attends
an institution of higher education on less than a
full-time basis, the amount of the grant that such
student may receive shall be reduced in the same
manner as a Federal Pell Grant is reduced under
section 401(b)(2)(B);'';
(B) by striking paragraph (2) and inserting the
following:
``(2) Limitations.--
``(A) No grants for previous credit.--The Secretary
may not award a grant under this section to any student
for any year of a program of undergraduate education for
which the student received credit before the date of
enactment of the Higher Education Reconciliation Act of
2005.
``(B) Number of grants.--The Secretary may not award
more than one grant to a student described in subsection
(c)(3) for each year of study described in such
subsection.''; and
(C) by adding at the end the following: and
``(3) Calculation of grant payments.--An institution of
higher education shall make payments of a grant awarded under
this section in the same manner, using the same payment periods,
as such institution makes payments for Federal Pell Grants under
section 401.'';
(5) by striking subsection (e)(2) and inserting the
following:
``(2) Availability of funds.--Funds made available under
paragraph (1) for a fiscal year shall remain available for the
succeeding fiscal year.'';
(6) in subsection (f)--
(A) by striking ``at least one'' and inserting ``not
less than one''; and

[[Page 752]]
122 STAT. 752

(B) by striking ``subsection (c)(3)(A) and (B)'' and
inserting ``subparagraphs (A) and (B) of subsection
(c)(3)''; and
(7) in subsection (g), by striking ``academic'' and
inserting ``award''.

(b) Effective Date.--The [NOTE: 20 USC 1070a-1 note.] amendments
made by subsection (a) shall take effect on January 1, 2009.
SEC. 11. INAPPLICABILITY OF [NOTE: 20 USC 1089 note.] 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 amendments made by sections 2 through 9
of this Act, or to any regulations promulgated under such amendments.

Approved May 7, 2008.

LEGISLATIVE HISTORY--H.R. 5715:
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HOUSE REPORTS: No. 110-583 (Comm. on Education and Labor).
CONGRESSIONAL RECORD, Vol. 154 (2008):
Apr. 16, 17, considered and passed House.
Apr. 30, considered and passed Senate, amended.
May 1, House concurred in Senate amendments.