[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3959 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 3959
To establish a Pay It Forward model for funding postsecondary
education.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 29, 2014
Ms. Bonamici (for herself and Mr. Kildee) introduced the following
bill; which was referred to the Committee on Education and the
Workforce
_______________________________________________________________________
A BILL
To establish a Pay It Forward model for funding postsecondary
education.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pay It Forward College Affordability
Act of 2014''.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--Congress finds the following:
(1) Postsecondary education has expanded opportunities for
people in the United States to qualify for high-quality jobs
and entry into the middle class, providing clear benefits to
the Nation's economy.
(2) Public investment by the States in higher education has
decreased significantly, especially in the past 5 years before
the date of enactment of this Act, as a result of the 2008
fiscal collapse.
(3) With college costs rising beyond the reach of many
people in the United States, financial aid programs are
inadequate to reach all students with financial need.
(4) The increasing unaffordability of a college education
has forced students to borrow more money to pay for higher
education, causing two-thirds of college seniors to graduate
with an average student debt of $26,600.
(5) High levels of student debt are damaging not only to
the individual student's ability to succeed financially but
also will have grave consequences for the future economy of the
United States.
(6) Congress must halt the decrease in State support for
education and, over time, must catalyze increases in State
funding for higher education.
(7) There is a need to encourage a new approach to
financing the students' share of the cost of higher education
that will not result in graduates who are overburdened with
student debt.
(8) The Pay It Forward model presents a new opportunity for
financing and expanding higher education, through the
replacement of tuition and mandatory fees with a post-
graduation contribution program that establishes the funding
for access to higher education for the next generational cohort
of students.
(b) Purpose.--The purpose of this Act is to test and encourage the
development of Pay It Forward model financing programs.
SEC. 3. DEFINITIONS.
In this Act:
(1) Annual income.--The term ``annual income'' means an
amount equal to the sum of--
(A) annual adjusted gross income, as defined in
section 62 of the Internal Revenue Code of 1986; and
(B) any amount described under section 103 of the
Internal Revenue Code of 1986.
(2) Cost of attendance.--The term ``cost of attendance''
has the meaning given the term in section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll).
(3) Institution of higher education.--
(A) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002), except that for purposes
of this Act, an institution of higher education does
not include any program of postsecondary education or
training, including a degree or certificate program,
that is designed to prepare students for entry into a
recognized occupation or profession that requires
licensing or other established requirements as a pre-
condition for entry into such occupation or profession,
unless--
(i) the successful completion of the
program fully qualifies a student, in the State
in which the institution offering the program
is located (and in any State in which the
institution indicates, through advertising or
marketing activities or direct contact with
potential students, that a student will be
prepared to work in the occupation or
profession after successfully completing the
program), to--
(I) take any examination required
for entry into the recognized
occupation or profession in the State,
including satisfying all State or
professionally mandated programmatic
and specialized accreditation
requirements, if any; and
(II) be certified or licensed or
meet any other academically related
pre-conditions that are required for
entry into the recognized occupation or
profession in the State;
(ii) the institution offering the program
provides timely placement for all of the
academically related pre-licensure requirements
for entry into the recognized occupation or
profession in the State, such as clinical
placements, internships, or apprenticeships;
(iii) in the case of State licensing or
professionally mandated requirements for entry
into the recognized occupation or profession in
the State in which the institution offering the
program is located (and in any State in which
the institution indicates, through advertising
or marketing activities or direct contact with
potential students, that a student will be
prepared to work in the occupation or
profession after successfully completing the
program) that require specialized
accreditation--
(I) the program meets that
requirement for specialized
accreditation through its accreditation
or pre-accreditation by an accrediting
agency or association recognized by the
Secretary of Education as a reliable
authority as to the quality or training
offered by the institution in that
program; and
(II) if the program is in a pre-
accredited, probation, or show cause
status by an accrediting agency or
association described in subclause (I),
and the requirement for specialized
accreditation is for full
accreditation, the institution--
(aa) establishes, to the
satisfaction of the Secretary
of Education, that each student
who enrolls before the program
is fully accredited attests of
being advised that the program
is in a pre-accredited,
probation, or show cause status
and of being informed of the
effect on the student's
eligibility for assistance
under this Act and on the
student's ability to satisfy
State or professionally
mandated requirements for entry
into the recognized occupation
or profession if full
accreditation is delayed,
denied, terminated, or
withdrawn; and
(bb) publicly and
prominently discloses in any
advertising, marketing, or
recruitment materials and
activities for the institution,
the institution's pre-
accredited, probation, or show
cause status and the
implications of such status for
prospective students; and
(iv) the institution--
(I) discloses on the application to
enroll in the institution that its
program does not necessarily satisfy
out-of-State requirements, if
applicable; and
(II) upon receipt of an application
to enroll in the institution, notifies
the student, prior to enrollment, if
the program in which the student
intends to enroll does not satisfy the
requirements of the State in which the
student is a resident, if applicable.
(B) School, department, or program.--The term
``institution of higher education'' may include a
particular school, department, or program within an
institution of higher education described in
subparagraph (A).
(4) Pay it forward model.--The term ``Pay It Forward
model'' means a system in which--
(A) the Secretary, a State, or an institution of
higher education pays all or part of a participating
student's cost of attendance, but not less than an
amount equal to the cost of tuition and mandatory fees,
for each such student during some or all of the time
that the student is enrolled at an institution of
higher education in order to replace the student's need
to borrow under the Federal Direct Stafford Loan and
Federal Direct Unsubsidized Stafford Loan Programs
under part D of title IV of the Higher Education Act of
1965 (20 U.S.C. 1087a et seq.); and
(B) such student signs a contract agreeing to
contribute to the Secretary, a State, or an institution
of higher education, as the case may be, a certain
percentage (not to exceed 5 percent) of the student's
annual income, for a specified number of years upon
graduation or when the student ceases to be enrolled at
such institution of higher education, except that the
specified number of years for which the student agrees
to contribute according to such contract shall not
exceed 25 years, which shall be known as the ``Pay It
Forward Contribution Plan''.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(6) Tuition and mandatory fees.--The term ``tuition and
mandatory fees'' means tuition and fees normally assessed a
student carrying the same academic workload as determined by
the institution of higher education.
SEC. 4. INITIAL STUDIES.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary, in consultation with the
Secretary of the Treasury--
(1) and the Director of the Consumer Financial Protection
Bureau, shall conduct a study on the feasibility of, and
options for, implementing the Pay It Forward model, in a manner
that is in the best interests of students; and
(2) shall conduct a study--
(A) on whether the student loan servicer payment
program or the Internal Revenue Service income tax
withholding mechanism (such as preauthorized automatic
electronic funds transfers) of collection for the Pay
It Forward model would work best;
(B) on how best to establish a participant's
agreement described under section 5(g)(3), or a similar
agreement made under another Pay It Forward model,
including what percentage of a participant's income the
participant should be required to contribute and what
is an appropriate time period for contribution;
(C) on how the rates of contribution under the Pay
It Forward model may differ--
(i) according to different income levels;
and
(ii) based on whether the student pursues a
graduate or professional education program
immediately after completing their
undergraduate education or at a future time;
(D) on how best to streamline the collection
process and ensure compliance; and
(E) on ways to prevent increases in tuition and
other education costs.
(b) Report.--Not later than 30 days after the completion of the
studies described in subsection (a), the Secretary shall prepare and
submit a report containing the results of the initial studies described
in subsection (a), to the Committee on Health, Education, Labor, and
Pensions of the Senate, the Committee on Banking, Housing, and Urban
Affairs of the Senate, the Committee on Finance of the Senate, the
Committee on Education and the Workforce of the House of
Representatives, the Committee on Financial Services of the House of
Representatives, and the Committee on Ways and Means of the House of
Representatives.
SEC. 5. GRANTS FOR STATE PAY IT FORWARD PILOT PROGRAM.
(a) In General.--Unless the Secretary determines, as a result of
the initial studies described in section 4, that the Pay It Forward
model is not feasible or otherwise not in the public interest or in the
best interest of students, the Secretary shall, not later than 1 year
after the completion of such initial study, award grants, on a
competitive basis, to not more than 3 States in the first 2 years and
not more than 7 additional States in subsequent years (while limiting
the number of students participating to 15,000 annually in the first 2
years and 50,000 annually in subsequent years in all States) to enable
such States to establish and carry out a Pay It Forward model State
pilot program as described in subsection (e).
(b) Application; Duration.--
(1) Application.--Each State that desires 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 may reasonably require.
(2) Duration.--Grants awarded under this section shall be
for a period of not less than 10 years and not more than 25
years and the Secretary shall make grant funds available to
each State on an annual basis.
(c) State Contribution Requirement.--A State receiving a grant
under this section shall provide, either directly or through private
contributions, non-Federal funds for each award year in an amount that
is not less than the greater of--
(1) the difference between--
(A) the amount for an award year that the State has
agreed to pay for all students participating in the
State Pay It Forward Contribution Plan described in
subsection (e); and
(B) the amount of the Federal funds described in
subsection (e)(2); or
(2) the amount that is 10 percent of the amount of the
Federal funds described in subsection (e)(2).
(d) Maintenance of Effort.--Each State receiving a grant under this
section for a fiscal year shall provide the Secretary with an assurance
that the aggregate expenditures by the State, from funds derived from
non-Federal sources, for the contribution to higher education costs,
including student loans and grants for higher education for each fiscal
year for which a grant is awarded under this section (excluding funds
for a State Pay It Forward model) are not less than the aggregate
expenditures by the State for the contribution to higher education
costs, including student loans and grants for higher education, for the
fiscal year preceding the first fiscal year for which a grant was
awarded to the State under this section, as adjusted for inflation
using the Consumer Price Index for All Urban Consumers published by the
Department of Labor (CPI-U).
(e) State Pilot Program.--
(1) State activities.--In accordance with subsection (a),
each State receiving a grant under this section shall establish
and carry out a State Pay It Forward model pilot program,
through which the State shall--
(A) select eligible institutions, in accordance
with subsection (f), for participation in the program;
(B) in coordination with the Secretary, establish
an application and enrollment process through which a
student who is enrolled at a participating eligible
institution who wishes to participate in the program,
and fulfills the requirements of the enrollment
process, as determined by the State, shall be enrolled
in the Pay It Forward Contribution Plan, subject to
paragraph (3);
(C) provide each student at each participating
eligible institution with a written notice--
(i) that such student has the option to
participate, or to decline to participate, in
the Pay It Forward Contribution Plan on an
annual renewable basis, subject to paragraph
(3);
(ii) of the application and enrollment
process described in subparagraph (B); and
(iii) of the terms and conditions of the
Pay It Forward Contribution Plan, as described
in subsection (g);
(D) ensure that, subject to subsection (g)(5)(A)
and in accordance with paragraphs (4) and (5) of
subsection (g), an eligible student's cost of
attendance will be reduced by the amount of any
assistance considered estimated financial assistance,
as defined in section 428(a)(2)(C) of the Higher
Education Act of 1965 (20 U.S.C. 1078(a)(2)(C)) prior
to the awarding of aid under the Pay It Forward
Contribution Plan toward the student's cost of
attendance;
(E) award funds, from amounts made available under
subsection (c), any other State funds, and amounts made
available under paragraph (2)(B) to pay--
(i) each participating institution an
amount equal to the tuition and mandatory fees
for each student at that institution who is
enrolled in the Pay It Forward Contribution
Plan, as described in subsection (g), except
that such amount shall, for each student, not
exceed the lesser of--
(I) the amount of the tuition and
mandatory fees for each such student at
the most expensive public institution
of higher education in the State for
the type of institution the
participating student attends
(including a 4-year institution, 2-year
institution, or 1-year institution) for
that award year; or
(II) the cost of attendance for
each such student to attend the
institution at which the student is
enrolled; and
(ii) each participating student any
additional costs of attendance that have been
agreed to in the student's contract described
in subsection (g), except that such additional
costs shall be in an amount such that the sum
of such additional costs and the amount of
tuition and fees described in clause (i) shall,
for each such student, not exceed the lesser
of--
(I) the amount of the tuition and
mandatory fees for a student at the
most expensive public institution of
higher education in the State for the
type of institution the participating
student attends (including a 4-year
institution, 2-year institution, or 1-
year institution) for that award year;
or
(II) the cost of attendance for the
student to attend the institution at
which the student is enrolled.
(2) Federal funds.--The Secretary shall pay each State
receiving a grant under this section, for each award year for
the purpose of carrying out paragraph (1)(E), an amount equal
to the product of--
(A) the number of students in the State that are
enrolled in the Pay It Forward Contribution Plan for
that award year; multiplied by
(B) an amount equal to the sum of--
(i) the maximum amount that a student is
eligible to receive through a Federal Direct
Stafford loan under part D of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087a
et seq.) for that award year; plus
(ii) the maximum amount that a student is
eligible to receive through a Federal Direct
Unsubsidized Stafford loan under part D of
title IV of the Higher Education Act of 1965
(20 U.S.C. 1087a et seq.) for that award year.
(f) Eligible Institutions.--
(1) In general.--An eligible institution, for purposes of
this section, means an institution of higher education, that--
(A) submits an application to the State at such
time, in such manner, and containing such information
as the State may reasonably require;
(B) agrees to participate in the Pay It Forward
Contribution Plan and commits to participation in
research that may be related to the Pay It Forward
Contribution Plan; and
(C) agrees to maintain--
(i) in the case of an institution of higher
education in which the entire institution is
participating, the level of institutional
financial aid, including the level of
institutional funding for student grants and
loans, as adjusted for inflation by the
Consumer Price Index for All Urban Consumers
published by the Department of Labor (CPI-U),
that the institution provides at the time of
the application to participate in the Pay It
Forward Contribution Plan throughout the
duration of the Pay It Forward Contribution
Plan; or
(ii) in the case of a department, school,
or program within an institution of higher
education, maintain the level of aid described
in clause (i) on a department, school, or
program-wide basis.
(2) Selection of participating institutions.--
(A) In general.--If a sufficient number of eligible
institutions in a State receiving a grant under this
section wish to participate in the Pay It Forward
Contribution Plan, such State shall establish methods
for selecting eligible institutions to participate, or
otherwise set standards for participation, in such a
way that meets the requirements of this paragraph and
maximizes the utility of the research that results from
the evaluation of the Pay It Forward Contribution Plan.
(B) Criteria.--In selecting eligible institutions
under subparagraph (A), the State shall consider the
extent to which selected institutions will represent
varied geographic locations and types of institutions
(such as community colleges, institutions that offer 4-
year programs, or other variations in the types of
institutions that are selected).
(C) Preference.--In selecting eligible institutions
under subparagraph (A), the State shall give preference
to eligible institutions that have a history of making
an effort to reduce or hold constant tuition and
mandatory fees and cost of attendance or have a plan to
reduce or hold constant tuition and mandatory fees and
cost of attendance, as determined by the State.
(3) Announcement of participants.--Each State receiving a
grant under this section shall announce each eligible
institution that is selected for participation in the Pay It
Forward Contribution Plan at a time that provides students at
participating eligible institutions with adequate notice in
advance of the commencement of the Pay It Forward Contribution
Plan at that institution.
(4) State as grant recipient.--The Secretary may award
grants to States that have developed, or are in the process of
developing, pilot Pay It Forward grant programs at the State
level to enable the State to carry out the activities described
in this Act as if such State were an eligible institution
selected for participation in the Pay It Forward Contribution
Plan.
(g) Terms of the Pay It Forward Contribution Plan.--If a student
who attends a participating eligible institution has applied for and
enrolled in the Pay It Forward Contribution Plan as described in
subsection (e)(1)(B)--
(1) the State shall pay--
(A) to the participating institution that such
student attends not less than an amount equal to the
cost of tuition and mandatory fees during the time that
the student is enrolled as an undergraduate at the
participating eligible institution and is participating
in the Pay It Forward Contribution Plan, and for a
period of not more than--
(i) 4 years; or
(ii) another period of time (such as a
certain number of college credits or academic
years completed) that the State, the
institution, and the student shall determine
and specify in the agreement described under
paragraph (3); and
(B) a student who attends a participating eligible
institution and has applied for and enrolled in the Pay
It Forward Contribution Plan any additional costs of
attendance that are agreed to by the State, the
institution, and the student and are established in the
contract described in paragraph (3), except that such
additional costs shall be in an amount such that the
sum of such additional costs and the amount of tuition
and fees described in subparagraph (A) shall, for each
such student and for each award year, not exceed the
amount of the tuition and mandatory fees for a student
at the most expensive public institution of higher
education in the State for the type of institution the
participating student attends (including a 4-year
institution, 2-year institution, or 1-year institution)
for that award year;
(2) the State shall ensure that variations in the time that
a student's tuition and mandatory fees is paid by the State
shall be reflected in--
(A) the length of the contribution period
established in the student's Pay It Forward
Contribution Plan agreement described under paragraph
(3), except that the length of such contribution period
shall not exceed 25 years; and
(B) the percentage of annual income that such
student shall contribute, as established in the
student's Pay It Forward Contribution Plan agreement
described under paragraph (3);
(3) the student shall sign a contract agreement, which
shall include--
(A) the period of time (such as a certain number of
college credits or academic years completed) during
which the State will pay the institution that the
student attends not less than an amount equal to the
cost of tuition and mandatory fees that the student
requests to have provided through the Pay It Forward
Contribution Plan while the student is enrolled at such
participating eligible institution; and
(B) any additional costs of attendance that the
State agrees to pay for such student through the Pay It
Forward Contribution Plan while the student is enrolled
at such participating eligible institution; and
(C) a statement that the student will contribute to
the State a certain percentage (not to exceed 5
percent) of the student's annual income for a specified
number of years upon graduation from such institution
of higher education, successful completion of the
student's course of study, or when such student ceases
to be enrolled at such institution of higher education,
as determined by the State, and the student shall be
required to begin making such contributions on the date
that is the later of--
(i) 1 calendar year after graduation from
such institution of higher education,
successful completion of the student's course
of study, or when such student ceases to be
enrolled at such institution of higher
education, as determined by the State; or
(ii) 1 calendar year after the completion
of a year that the student is enrolled in the
Pay It Forward Contribution Plan;
(4) the student shall continue to be eligible to obtain any
grants, scholarships, or funds that do not have to be repaid
(including Federal Pell Grants or any other Federal, State, or
institutional grant money) that the student would otherwise be
eligible to receive if the student was not a participant in the
Pay It Forward Contribution Plan and that are applied toward
the student's tuition and mandatory fees at the eligible
institution, and the amount of such grants, scholarships, or
funds shall be deducted from the amount that the State would
otherwise pay toward the student's tuition and mandatory fees
under the Pay It Forward Contribution Plan, thereby
proportionately reducing the percentage of a participating
student's annual income that the student will be required to
contribute or the duration of the student's contribution
period, as described under paragraph (3);
(5) the student shall continue to be eligible to obtain any
other student loans, including Federal student loans (except
for Federal Direct Stafford Loans under part D of title IV of
the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.)),
that the student would otherwise be eligible to receive if the
student was not a participant in the Pay It Forward
Contribution Plan except that--
(A) any funds received by a student under the Pay
It Forward Contribution Plan shall be considered
estimated financial assistance for purposes of
calculations under section 428(a)(2)(C) of the Higher
Education Act of 1965 (20 U.S.C. 1078(a)(2)(C)); and
(B) the amount of such loans shall be deducted from
the amount that the State would otherwise pay toward
the student's tuition and mandatory fees under the Pay
It Forward Contribution Plan, thereby proportionately
reducing the percentage of a participating student's
annual income that the student will be required to
contribute or the duration of the student's
contribution period, as described under paragraph (3);
and
(6) if the student obtains Federal student loans, such
student shall remain eligible for applicable Federal loan
repayment, forgiveness, or similar programs regarding such
Federal student loans to the same extent that the student would
be eligible for such repayment, forgiveness, or similar
programs if the student were not also participating in the Pay
It Forward Contribution Plan.
(h) Method of Contribution Collection.--The Secretary, in
consultation with the Secretary of the Treasury or a designee of the
Secretary of the Treasury, shall work with appropriate State agencies
to develop an efficient mechanism for students who enroll in the Pay It
Forward Contribution Plan, including using existing student loan
repayment structures, wage withholding (such as preauthorized automatic
electronic funds transfers), or other suitable methods as the
respective State agencies may determine and as approved by the
Secretary.
(i) State Report.--Each State receiving a grant under this section
shall annually prepare and submit a report to the Secretary containing
such information about the grant program as the Secretary may require.
SEC. 6. ADVISORY COUNCIL.
(a) In General.--The Secretary shall establish, and appoint members
to, a technical advisory council to make recommendations to the
Secretary about--
(1) how to design an evaluation of the Pay It Forward
Contribution Plan described under section 5;
(2) how to maximize the utility of the research results
that may be used to evaluate such program; and
(3) implementation issues and solutions for State-based Pay
It Forward model pilot programs, which may include applying a
State-based Pay It Forward model pilot program for
nontraditional students, including students who are older,
already working, or attending school at night, and in cases in
which graduates voluntarily leave the workforce.
(b) Members of the Council.--The technical advisory council
established under this section shall include not more than 11 members,
of whom--
(1) not less than 3 members shall be academic researchers
with expertise in higher education;
(2) not less than 2 members shall have expertise in
quantitative program evaluation;
(3) not less than 2 members shall be student advocates; and
(4) not less than 2 members shall be experts in budgetary
and financial matters.
(c) Report.--The technical advisory council established under this
section shall prepare and submit a report to the Secretary containing
the recommendations described in subsection (a).
SEC. 7. IMPLEMENTATION STUDY.
(a) Initial Evaluation.--Not later than 5 years after the
establishment of the State Pay It Forward models under section 5, the
Secretary shall, after consideration of the advisory council
recommendations regarding how to evaluate the Pay It Forward
Contribution Plan described under section 6(a), conduct an initial
evaluation of the Pay It Forward Contribution Plan, which may include
an evaluation of--
(1) how the rates of contribution under the Pay It Forward
model may differ according to different income levels;
(2) the rates of students who fail to contribute funds as
agreed to under the Pay It Forward model;
(3) how best to establish a student's agreement described
under section 5(g)(3), or a similar agreement made under
another Pay It Forward model, including what percentage of a
student's income the student should be required to contribute
and what is an appropriate time period for contribution;
(4) ways to prevent increases in tuition and other
education costs; and
(5) ways to integrate existing Federal student loan
repayment and forgiveness programs into the Pay It Forward
model.
(b) Evaluation.--Not later than 10 years after the establishment of
the Pay It Forward Contribution Plan described under section 5, the
Secretary shall, after consideration of the advisory council
recommendations regarding how to evaluate the Pay It Forward
Contribution Plan--
(1) evaluate whether existing student loan debt could be
converted into a Pay It Forward model;
(2) evaluate the impact of the Pay It Forward model on a
student's career choices and employment, including how such
model may impact a student's employment in public service jobs
and level of employment (such as whether a student
participating in the Pay It Forward model will go on to part
time or full time employment);
(3) evaluate mechanisms through which employers could
provide funds toward the contributions that an employee is
required to make under a Pay It Forward model contribution
agreement;
(4) examine the long-term solvency and feasibility of an
expanded Pay It Forward program; and
(5) examine the distributional implications of allowing
students to opt out of participation in a Pay It Forward model
program as compared to requiring all students who are enrolled
at a participating institution to participate in a Pay It
Forward model program.
(c) Report.--Upon completion of the evaluation described under
subsection (a), the Secretary shall prepare and submit a report
containing the results of such evaluation to the Committee on Health,
Education, Labor, and Pensions of the Senate, the Committee on Banking,
Housing, and Urban Affairs of the Senate, the Committee on Finance of
the Senate, the Committee on Education and the Workforce of the House
of Representatives, the Committee on Financial Services of the House of
Representatives, and the Committee on Ways and Means of the House of
Representatives.
SEC. 8. EXPANDED IMPLEMENTATION.
The Secretary may expand the Pay It Forward model, including by
developing Pay It Forward model pilot programs for students pursuing
post-baccalaureate degrees that relate to the medical profession in
order to meet the need for more primary medical care providers,
increasing the number or duration of grants to States for carrying out
a Pay It Forward State pilot program, or establishing a Federal program
based on the Pay It Forward model, if the Secretary determines that
doing so--
(1) will not increase the cost to the Federal Government
for carrying out Federal loan programs under title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
(2) may be carried out using amounts available for the
programs under title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.); and
(3) is in the best interests of students and the Nation in
advancing national priorities for education, health, and
economic development.
SEC. 9. WAIVER.
(a) State Application for Waiver.--A State awarded a grant under
this Act may apply to the Secretary to waive a requirement of the
grant.
(b) Secretary Authority.--The Secretary may waive any provision in
this Act if the Secretary determines that doing so would be in the best
interest of students and achieve the goals of the Pay It Forward model.
SEC. 10. PAY IT FORWARD FUND.
(a) Establishment of a Fund.--There is established in the Treasury
a fund, to be known as the ``Pay It Forward Fund'' (referred to in this
section as the ``Fund''), to be administered by the Secretary of
Education, in which all funds received in Pay It Forward contributions
under this Act shall be deposited.
(b) Use.--The amounts in the Fund shall be made available to the
Secretary of Education in order to carry out this Act.
SEC. 11. AMOUNTS AVAILABLE FOR PAY IT FORWARD FROM STAFFORD LOAN
PROGRAM.
Amounts made available under any Act to carry out the Federal
Direct Stafford Loan Program under part D of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087a et seq.) shall be available to
the Secretary of Education to carry out the Pay It Forward program
under this Act.
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