Search Results - THOMAS (Library of Congress)

23-574

2005
109TH CONGRESS 1ST SESSION
Report
HOUSE OF REPRESENTATIVES

109-231

COLLEGE ACCESS AND OPPORTUNITY ACT OF 2005

R E P O R T

of the

COMMITTEE ON EDUCATION AND THE WORKFORCE

H.R. 609

[Graphic image not available]

COLLEGE ACCESS AND OPPORTUNITY ACT OF 2005

23-574

2005
109TH CONGRESS 1ST SESSION
Report
HOUSE OF REPRESENTATIVES

109-231

COLLEGE ACCESS AND OPPORTUNITY ACT OF 2005

R E P O R T

of the

COMMITTEE ON EDUCATION AND THE WORKFORCE

H.R. 609

[Graphic image not available]

23-574

109TH CONGRESS

REPORT

HOUSE OF REPRESENTATIVES

1st Session

109-231

--COLLEGE ACCESS AND OPPORTUNITY ACT OF 2005

SEPTEMBER 22, 2005- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. BOEHNER, from the Committee on Education and the Workforce, submitted the following

R E P O R T

together with

MINORITY VIEWS

[To accompany H.R. 609]

[Including cost estimate of the Congressional Budget Office]

The Committee on Education and the Workforce, to whom was referred the bill (H.R. 609) to amend and extend the Higher Education Act of 1965, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass.

The amendment is as follows:

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `College Access and Opportunity Act of 2005'.

(b) Table of Contents-

Sec. 1. Short title; table of contents.

Sec. 2. References; effective date.

TITLE I--GENERAL PROVISIONS

Sec. 101. Definition of institution of higher education.

`Sec. 101. Definition of institution of higher education.

`Sec. 102. Institutions outside the United States.

`Sec. 123. Restrictions on funds for for-profit schools.

Sec. 102. New borrower definition.

Sec. 103. Student speech and association rights.

Sec. 104. National Advisory Committee on Institutional Quality and Integrity.

Sec. 105. Alcohol and drug abuse prevention.

Sec. 106. Prior rights and obligations.

Sec. 107. Limitation on Certain Uses of Funds.

`Sec. 124. Limitation on Certain Uses of Funds.

Sec. 108. Consumer information and public accountability in higher education.

`Sec. 131. Consumer information and public accountability in higher education.

Sec. 109. Databases of student information.

`Sec. 132. Databases of student information prohibited.

Sec. 110. Performance-based organization.

TITLE II--TEACHER PREPARATION

Sec. 201. Teacher quality enhancement grants.

`Part A--Teacher Quality Enhancement Grants for States and Partnerships

`Sec. 201. Purposes; definitions.

`Sec. 202. State grants.

`Sec. 203. Partnership grants.

`Sec. 204. Teacher recruitment grants.

`Sec. 205. Administrative provisions.

`Sec. 206. Accountability and evaluation.

`Sec. 207. Accountability for programs that prepare teachers.

`Sec. 208. State functions.

`Sec. 209. General provisions.

`Sec. 210. Authorization of appropriations.

Sec. 202. Preparing tomorrow's teachers to use technology.

Sec. 203. Centers of excellence.

`Part C--Centers of Excellence

`Sec. 231. Purposes; definitions.

`Sec. 232. Centers of excellence.

`Sec. 233. Authorization of appropriations.

Sec. 204. Teacher incentive fund program.

`Part D--Teacher Incentive Fund Program

`Sec. 241. Purpose; definitions.

`Sec. 242. Teacher incentive fund grants.

`Sec. 243. Evaluations.

`Sec. 244. Authorization of appropriations.

Sec. 205. Transition.

TITLE III--INSTITUTIONAL AID

Sec. 301. Title III grants for American Indian Tribally Controlled Colleges and Universities.

Sec. 302. Alaska Native and Native Hawaiian-serving institutions.

Sec. 303. Grants to part B institutions.

Sec. 304. Technical amendments.

Sec. 305. Title III authorizations.

TITLE IV--STUDENT ASSISTANCE

Part A--Grants to Students

Sec. 401. Pell Grants.

`Sec. 401A. Pell Grants Plus: achievement grants for State scholars.

Sec. 402. TRIO programs.

Sec. 403. TRIO reform.

`Sec. 402G. Staff development activities.

`Sec. 402H. Evaluations.

Sec. 404. GEARUP.

Sec. 405. Federal Supplemental Educational Opportunity Grants.

Sec. 406. LEAP.

Sec. 407. HEP/CAMP program.

Sec. 408. Robert C. Byrd Honors Scholarship Program.

`Subpart 6--Robert C. Byrd Honors Scholarship Program

`Sec. 419A. Robert C. Byrd mathematics and science honors scholarship program.

`Sec. 419B. Mathematics and science incentive program.

`Sec. 419C. Mathematics and science education coordinating council grants.

`Sec. 419D. Authorization of appropriations.

Sec. 409. Child care access.

Sec. 410. Learning anytime anywhere partnerships.

Part B--Federal Family Education Loan Program

Sec. 421. Reauthorization of Federal Family Education Loan Program.

Sec. 422. Loan limits.

Sec. 423. Interest rates and special allowances.

Sec. 424. Additional loan terms and conditions.

Sec. 425. Consolidation loan changes.

Sec. 426. Deferment of student loans for military service.

Sec. 427. Loan forgiveness for service in areas of national need.

`Sec. 428K. Loan forgiveness for service in areas of national need.

Sec. 428. Unsubsidized Stafford loans.

Sec. 429. Elimination of termination dates from Taxpayer-Teacher Protection Act of 2004.

Sec. 430. Additional administrative provisions.

`Sec. 428I. Special insurance and reinsurance rules for exceptional performance.

Part C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.

Sec. 442. Community service.

Sec. 443. Allocation of funds.

Sec. 444. Books and supplies.

Sec. 445. Job location and development.

Sec. 446. Work colleges.

Part D--Federal Direct Loan Program

Sec. 451. Reauthorization of the Direct Loan Program.

Part E--Federal Perkins Loan Program

Sec. 461. Reauthorization of program.

Sec. 462. Loan terms and conditions.

Sec. 463. Loan cancellation.

Sec. 464. Technical amendments.

Part F--Need Analysis

Sec. 471. Significantly simplifying the student aid application process.

Sec. 472. Additional need analysis amendments.

Part G--General Provisions Relating to Student Financial Assistance

Sec. 481. Definitions of academic year and eligible program.

Sec. 482. Distance education.

Sec. 483. Expanding information dissemination regarding eligibility for Pell Grants.

Sec. 484. Student eligibility.

Sec. 485. Institutional refunds.

Sec. 486. Institutional and financial assistance information for students.

Sec. 487. College access initiative.

`Sec. 485D. College access initiative.

Sec. 488. Distance education demonstration program.

Sec. 489. College affordability demonstration program.

`Sec. 486A. College affordability demonstration program.

Sec. 490. Program participation agreements.

Sec. 491. Additional technical and conforming amendments.

Part H--Program Integrity

Sec. 495. Accreditation.

Sec. 496. Report to congress on prevention of fraud and abuse in student financial aid programs.

`Sec. 499. Report to Congress on prevention of fraud and abuse in student financial aid programs.

TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Definitional changes.

Sec. 502. Assurance of enrollment of needy students.

Sec. 503. Additional amendments.

Sec. 504. Postbaccalaureate opportunities for Hispanic Americans.

`Part B--Promoting Postbaccalaureate Opportunities for Hispanic Americans

`Sec. 511. Purposes.

`Sec. 512. Program authority and eligibility.

`Sec. 513. Authorized activities.

`Sec. 514. Application and duration.

Sec. 505. Authorization of appropriations.

TITLE VI--TITLE VI AMENDMENTS

Sec. 601. International and foreign language studies.

Sec. 602. Business and international education programs.

Sec. 603. Institute for International Public Policy.

`Sec. 621. Program for foreign service professionals.

Sec. 604. Evaluation, outreach, and dissemination.

`Sec. 632. Evaluation, outreach, and dissemination.

Sec. 605. Advisory Board.

`Sec. 633. International Higher Education Advisory Board.

Sec. 606. Recruiter access to students and student recruiting information; safety.

`Sec. 634. Recruiter access to students and student recruiting information.

`Sec. 635. Student safety.

Sec. 607. National study of foreign language heritage communities.

`Sec. 636. National study of foreign language heritage communities.

TITLE VII--TITLE VII AMENDMENTS

Sec. 701. Javits fellowship program.

Sec. 702. Graduate assistance in areas of national need.

Sec. 703. Thurgood Marshall legal educational opportunity program.

Sec. 704. Fund for the improvement of postsecondary education.

Sec. 705. Urban community service.

Sec. 706. Demonstration projects to ensure students with disabilities receive a quality higher education.

TITLE VIII--CLERICAL AMENDMENTS

Sec. 801. Clerical amendments.

TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS

Part A--Education of the Deaf Act of 1986

Sec. 901. Laurent Clerc National Deaf Education Center.

Sec. 902. Authority.

Sec. 903. Agreement for the National Technical Institute for the Deaf.

Sec. 904. Definitions.

Sec. 905. Audit.

Sec. 906. Reports.

Sec. 907. Liaison for educational programs.

Sec. 908. Federal endowment programs for Gallaudet University and the National Technical Institute for the Deaf.

Sec. 909. Oversight and effect of agreements.

Sec. 910. Authorization of appropriations.

`Sec. 1. Short title.

Part B--Additional Education Laws

Sec. 921. Cancellation of Student Loan Indebtedness For Survivors of Victims of the September 11, 2001, Attacks.

Sec. 922. Amendment to Higher Education Amendments of 1998.

Sec. 923. Tribally Controlled College or University Assistance Act of 1978.

Sec. 924. Navajo Community College Act.

Sec. 925. Education Amendments of 1992.

Sec. 926. Study of student learning outcomes and public accountability.

Sec. 927. Study of minority graduation rates.

Sec. 928. Study of education-related indebtedness of medical school graduates.

Sec. 929. Study of adult learners.

Sec. 930. Increase in college textbook prices.

SEC. 2. REFERENCES; EFFECTIVE DATE.

(a) References- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

(b) Effective Date- Except as otherwise provided in this Act, the amendments made by this Act shall take effect on the date of enactment of this Act.

TITLE I--GENERAL PROVISIONS

SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

(a) Amendment- Title I is amended by striking sections 101 and 102 (20 U.S.C. 1001, 1002) and inserting the following:

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

`(a) Institution of Higher Education- For purposes of this Act, the term `institution of higher education' means an educational institution in any State that--

`(1) admits as regular students only individuals who--

`(A) meet the requirements of section 484(d)(3), or have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate;

`(B) are beyond the age of compulsory school attendance in the State in which the institution is located; or

`(C) will be dually enrolled in that institution and a secondary school;

`(2) is legally authorized within such State to provide a program of education beyond secondary education;

`(3)(A) is accredited by a nationally recognized accrediting agency or association; or

`(B) if not so accredited, is a public or nonprofit institution that has been granted preaccreditation status by such an agency or association that has been recognized by the Secretary for the granting of preaccreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time; and

`(4) meets either of the following criteria:

`(A) is a nonprofit, for-profit, or public institution that--

`(i) provides an educational program for which the institution awards a bachelor's, graduate, or professional degree;

`(ii) provides not less than a 2-year educational program which is acceptable for full credit towards such a degree;

`(iii) provides not less than a 1-year program of training that prepares students for gainful employment in a recognized occupation; or

`(iv) awards a degree that is acceptable for admission to graduate or professional degree programs, subject to the review and approval of the Secretary; or

`(B) is a nonprofit, for-profit, or public institution that provides an eligible program (as defined in section 481)--

`(i) for which the institution awards a certificate; and

`(ii) that prepares students for gainful employment in a recognized occupation.

`(b) Additional Limitations-

`(1) FOR-PROFIT POSTSECONDARY INSTITUTIONS-

`(A) DURATION OF ACCREDITATION- A for-profit institution shall not be considered to be an institution of higher education unless such institution is accredited by a nationally recognized accrediting agency or association and such institution has been in existence for at least 2 years.

`(B) INSTITUTIONAL ELIGIBILITY ONLY FOR COMPETITIVE GRANTS- For the purposes of any program providing grants to institutions for use by the institution (and not for distribution among students), a for-profit institution shall not be considered to be an institution of higher education under this section if such grants are awarded on any basis other than competition on the merits of the grant proposal or application.

`(2) POSTSECONDARY VOCATIONAL INSTITUTIONS- A nonprofit or public institution that meets the criteria of subsection (a)(4)(B) shall not be considered to be an institution of higher education unless such institution has been in existence for at least 2 years.

`(3) LIMITATIONS BASED ON MANAGEMENT- An institution shall not be considered to meet the definition of an institution of higher education in this section if--

`(A) the institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy, except that this paragraph shall not apply to a nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institution's management or policies) that filed for bankruptcy under chapter 11 of title 11, United States Code, between July 1, 1998, and December 1, 1998; or

`(B) the institution, the institution's owner, or the institution's chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of Federal, State, or local government funds, or has been judicially determined to have committed a crime involving the acquisition, use, or expenditure involving Federal, State, or local government funds.

`(4) LIMITATION ON COURSE OF STUDY OR ENROLLMENT- An institution shall not be considered to meet the definition of an institution of higher education in subsection (a) if such institution--

`(C) has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for an institution that provides a 2- or 4-year program of instruction (or both) for which the institution awards a bachelor's degree, or an associate's degree or a postsecondary certificate, respectively; or

`(D) has a student enrollment in which more than 50 percent of the students either do not meet the requirements of section 484(d)(3) or do not have a secondary school diploma or its recognized equivalent, and does not provide a 2- or 4-year program of instruction (or both) for which the institution awards an associate's degree or a bachelor's degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if an institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not meet the requirements of section 484(d)(3) or do not have a secondary school diploma or its recognized equivalent.

`(c) List of Accrediting Agencies- For purposes of this section, the Secretary shall publish a list of nationally recognized accrediting agencies or associations that the Secretary determines, pursuant to subpart 2 of part H of title IV, to be reliable authority as to the quality of the education or training offered.

`(d) Certification- The Secretary shall certify, for the purposes of participation in title IV, an institution's qualification as an institution of higher education in accordance with the requirements of subpart 3 of part H of title IV.

`(e) Loss of Eligibility- An institution of higher education shall not be considered to meet the definition of an institution of higher education in this section for the purposes of participation in title IV if such institution is removed from eligibility for funds under title IV as a result of an action pursuant to part H of title IV.

`SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.

`(a) Institutions Outside the United States-

`(1) IN GENERAL- An institution outside the United States shall be considered to be an institution of higher education only for purposes of part B of title IV if the institution is comparable to an institution of higher education, as defined in section 101, is legally authorized by the education ministry (or comparable agency) of the country in which the school is located, and has been approved by the Secretary for purposes of that part. The Secretary shall establish criteria by regulation for that approval and that determination of comparability. An institution may not be so approved or determined to be comparable unless such institution is a public or nonprofit institution, except that, subject to paragraph (2)(B), a graduate medical school or veterinary school located outside the United States may be a for-profit institution.

`(2) MEDICAL AND VETERINARY SCHOOL CRITERIA- In the case of a graduate medical or veterinary school outside the United States, such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made, insured, or guaranteed under part B of title IV unless--

`(A) in the case of a graduate medical school located outside the United States--

`(i)(I) at least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical school outside the United States were not persons described in section 484(a)(5) in the year preceding the year for which a student is seeking a loan under part B of title IV; and

`(II) at least 60 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student is seeking a loan under part B of title IV; or

`(ii) the institution has a clinical training program that was approved by a State as of January 1, 1992; or

`(B) in the case of a veterinary school located outside the United States that is not a public or nonprofit institution, the institution's students complete their clinical training at an approved veterinary school located in the United States.

`(b) Advisory Panel-

`(1) IN GENERAL- For the purpose of qualifying a foreign medical school as an institution of higher education only for purposes of part B of title IV, the Secretary shall publish qualifying criteria by regulation and establish an advisory panel of medical experts that shall--

`(A) evaluate the standards of accreditation applied to applicant foreign medical schools; and

`(B) determine the comparability of those standards to standards for accreditation applied to United States medical schools.

`(2) FAILURE TO RELEASE INFORMATION- The failure of an institution outside the United States to provide, release, or authorize release to the Secretary of such information as may be required by subsection (a)(2) shall render such institution ineligible for the purpose of part B of title IV.'.

(b) Restrictions on Funds for For-Profit Schools- Part B of title I is amended by inserting after section 122 (20 U.S.C. 1011k) the following new section:

`SEC. 123. RESTRICTIONS ON FUNDS FOR FOR-PROFIT SCHOOLS.

`(a) In General- Notwithstanding any other provision of this Act authorizing the use of funds by an institution of higher education that receives funds under this Act, none of the funds made available under this Act to a for-profit institution of higher education may be used for--

`(1) construction, maintenance, renovation, repair, or improvement of classrooms, libraries, laboratories, or other facilities;

`(2) establishing, improving, or increasing an endowment fund; or

`(3) establishing or improving an institutional development office to strengthen or improve contributions from alumni and the private sector.

`(b) Exception- Subsection (a) shall not apply to funds received by the institution from the grant, loan, or work assistance that is awarded under title IV to the students attending such institution.

`(c) Ineligibility for Certain Programs- Notwithstanding section 101, a for-profit institution of higher education shall not be considered an eligible institution for the programs under titles III and V of this Act.'.

(1) Section 114(a) (20 U.S.C. 1011c(a)) is amended by striking `(as defined in section 102)'.

(2) Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is amended by striking `section 102' and inserting `section 101'.

(3) Subsection (d) of section 484 (20 U.S.C. 1091(d)) is amended by striking the designation and heading of such subsection and inserting the following:

`(d) Satisfaction of Secondary Education Standards- '.

(4) Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is amended by striking `102(a)(3)(A), 102(a)(3)(B)' and inserting `101(b)(4)(A), 101(b)(4)(B)'.

(5) Section 487(c)(1)(A)(iii) (20 U.S.C. 1094(c)(1)(A)(iii)) is amended by striking `section 102(a)(1)(C)' and inserting `section 102'.

(6) Section 487(d) (20 U.S.C. 1094(d)) is amended by striking `section 102' and inserting `section 101'.

(7) Subsections (j) and (k) of section 496 (20 U.S.C. 1099b(j), (k)) are each amended by striking `section 102' and inserting `section 101'.

(8) Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) is amended by striking `section 102(a)(1)(C)' and inserting `section 102'.

(9) Section 498(i)(1) (20 U.S.C. 1099c(i)(1)) is amended by striking `section 102' and inserting `section 101'.

(10) Section 498(j)(1) (20 U.S.C. 1099c) is amended by striking `except that such branch shall not be required to meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C) prior to seeking such certification' and inserting `except that such branch shall not be required to be in existence for at least 2 years prior to seeking such certification'.

(11) Section 498B(b) (20 U.S.C. 1099c-2(b)) is amended by striking `section 102(a)(1)(C)' and inserting `section 102'.

(d) Effect on Other Laws-

(1) INCLUSION OF FOR-PROFIT INSTITUTIONS IN DEFINITION- The inclusion of proprietary and for-profit institutions within the definition of the term `institution of higher education' in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001) pursuant to the amendment made by subsection (a) of this section shall not apply to any other provision of law (other than the Higher Education Act of 1965) enacted before the date of enactment of this Act that references section 101 of the Higher Education Act of 1965 (or that term as so defined), except as expressly provided by an amendment to, or other revision of the application of, such law enacted after such date of enactment.

(2) INCLUSION OF FOR-PROFIT INSTITUTIONS AS TITLE III OR V ELIGIBLE INSTITUTION- Any reference in any provision of law other than the Higher Education Act of 1965 to institutions of higher education that are eligible to participate in programs under title III or V of such Act (20 U.S.C. 1051 et. seq., 1101 et seq.) shall not be treated, as a consequence of the amendment to section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001) by subsection (a) of this section, as including a reference to a for-profit or proprietary institution of higher education, except as expressly provided by an amendment to, or other revision of the application of, such law enacted after such date of enactment.

SEC. 102. NEW BORROWER DEFINITION.

Paragraph (7) of section 103 (20 U.S.C. 1003) is amended to read as follows:

`(7) NEW BORROWER- The term `new borrower' when used with respect to any date for any loan under any provision of--

`(A) part B or part D of title IV means an individual who on that date has no outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under either of those parts; and

`(B) part E of title IV means an individual who on that date has no outstanding balance of principal or interest owing on any loan made under that part.'.

SEC. 103. STUDENT SPEECH AND ASSOCIATION RIGHTS.

Section 112 (20 U.S.C. 1011a) is amended--

(1) by amending subsection (a) to read as follows:

`(a) Protection of Rights-

`(1) It is the sense of Congress that no student attending an institution of higher education on a full- or part-time basis should, on the basis of participation in protected speech or protected association, be excluded from participation in, be denied the benefits of, or be subjected to discrimination or official sanction under any education program, activity, or division of the institution directly or indirectly receiving financial assistance under this Act, whether or not such program, activity, or division is sponsored or officially sanctioned by the institution; and

`(2) It is the sense of Congress that--

`(A) the diversity of institutions and educational missions is one of the key strengths of American higher education;

`(B) individual colleges and universities have different missions and each institution should design its academic program in accordance with its educational goals;

`(C) within the context of its institutional mission, a college should promote intellectual pluralism and facilitate the free and open exchange of ideas;

`(D) students should not be intimidated, harassed, discouraged from speaking out, discriminated against, or subject to official sanction because of their personal political, ideological, or religious beliefs; and

`(E) students should be treated equally and fairly, including evaluation and grading, without regard to or consideration of their personal political views or ideological beliefs.

`(3) Nothing in paragraph (2) 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 after `higher education' the following: `, if the imposition of such sanction is done objectively, fairly, and without regard to the student's personal political, ideological, or religious beliefs'.

SEC. 104. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND INTEGRITY.

(a) Membership- Section 114(b) (20 U.S.C. 1011c(b)) is amended by adding at the end the following new sentence: `A member of the Committee may continue to serve after the expiration of a term until a successor has been appointed.'.

(b) Extension- Section 114(g) (20 U.S.C. 1011c(g)) is amended by striking `2004' and inserting `2012'.

SEC. 105. ALCOHOL AND DRUG ABUSE PREVENTION.

Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding fiscal years' and inserting `5 succeeding fiscal years'.

SEC. 106. PRIOR RIGHTS AND OBLIGATIONS.

Section 121(a) (20 U.S.C. 1011j(a)) is amended by striking `1999 and for each of the 4' each place it appears and inserting `2006 and for each of the 5'.

SEC. 107. LIMITATION ON CERTAIN USES OF FUNDS.

Part B of title I is further amended by adding after section 123 (as added by section 101(b) of this Act) the following new section:

`SEC. 124. LIMITATION ON CERTAIN USES OF FUNDS.

`No funds made available to carry out this Act may be used--

`(1) for publicity or propaganda purposes not authorized by the Congress before the date of enactment of the College Access and Opportunity Act of 2005; or

`(2) unless authorized by law in effect on such date of enactment, to produce any prepackaged news story intended for broadcast or distribution unless such story includes a clear a notification contained within the text or audio of such story stating that the prepackaged news story was prepared or funded by the Department of Education.'.

SEC. 108. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER EDUCATION.

Section 131 (20 U.S.C. 1015) is amended to read as follows:

`SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER EDUCATION.

`(a) Purpose- It is the purpose of this section to--

`(1) provide students and families with an easy-to-use, comprehensive web-based tool for researching and comparing institutions of higher education;

`(2) increase the transparency of college cost, price, and financial aid; and

`(3) raise public awareness of information available about postsecondary education, particularly among low-income families, non-traditional student populations, and first-generation college students.

`(b) College Opportunity On-Line (COOL) Website Re-Design Process- In carrying out this section, the Secretary--

`(1) shall identify the data elements that are of greatest importance to prospective students, enrolled students, and their families, paying particular attention to low-income, non-traditional student populations, and first-generation college students;

`(2) shall convene a group of individuals with expertise in the collection and reporting of data related to institutions of higher education, the measurement of institutional compliance costs, consumer use of data related to institutions of higher education, general consumer marketing, and college intervention services to--

`(A) determine the relevance of particular data elements to prospective students, enrolled students, and families;

`(B) assess the cost-effectiveness of various ways in which institutions of higher education might produce the data desired by consumers;

`(C) determine the general comparability of the data across institutions of higher education;

`(D) make recommendations regarding the inclusion of specific data items and the most effective and least burdensome methods to institutions of higher education of collecting and reporting useful data; and

`(3) shall assure that the redesigned COOL website--

`(A) uses, to the extent practicable, data elements currently provided by institutions of higher education to the Secretary;

`(B) includes clear and uniform information determined to be relevant to prospective students, enrolled students, and families;

`(C) provides comparable information, by assuring that data is based on accepted criteria and common definitions;

`(D) includes a sorting function that permits users to customize their search for and comparison of institutions of higher education based on the information identified through the process as prescribed in paragraph (1) as being of greatest relevance to choosing an institution of higher education.

`(c) Data Collection-

`(1) DATA SYSTEM- The Secretary shall continue to redesign the relevant parts of the Integrated Postsecondary Education Data System to include additional data as required by this section and to continue to improve the usefulness and timeliness of data collected by such systems in order to inform consumers about institutions of higher education.

`(2) COLLEGE CONSUMER PROFILE- The Secretary shall publish, for each academic year and in accordance with standard definitions developed by the Commissioner of Education Statistics (including definitions developed under section 131(a)(3)(A) as in effect on the day before the date of enactment of the College Access and Opportunity Act of 2005), from at least all institutions of higher education participating in programs under title IV the following information:

`(A) The tuition and fees charged for a first-time, full-time undergraduate student.

`(B) The room and board charges for such a student.

`(C) The cost of attendance for a first-time, full-time undergraduate student, consistent with the provisions of section 472.

`(D) The average amount of financial assistance received by a first-time full-time undergraduate student, including--

`(i) each type of assistance or benefits described in 428(a)(2)(C)(ii);

`(ii) institutional and other assistance; and

`(iii) Federal loans under parts B, D, and E of title IV.

`(E) The number of first-time, full-time students receiving financial assistance described in each clause of subparagraph (D).

`(F) The average net price for first-time, full-time students receiving Federal, State, or institutional grant or loan assistance.

`(G) The institutional instructional expenditure per full-time equivalent student.

`(H) Student enrollment information, including information on the number and percentage of full-time and part-time students, the number and percentage of resident and non-resident students.

`(I) Faculty/student ratios.

`(J) Faculty information, including the total number of faculty and the percentage of faculty who are full-time employees of the institution and the percentage who are part-time.

`(K) Completion and graduation rates, identifying whether the completion or graduation rates are from a 2-year or 4-year program of instruction and, in the case of a 2-year program of instruction, the percentage of students who transfer to 4-year institutions prior or subsequent to completion or graduation.

`(L) A link to the institution of higher education with information of interest to students including mission, accreditation, student services (including services for students with disabilities), transfer of credit policies and, if appropriate, placement rates and other measures of success in preparing students for entry into or advancement in the workforce.

`(M) Any additional information that the Secretary may require.

`(d) Data Dissemination- The Secretary shall make available, at a minimum, the data collected pursuant to this section, including an institution's college affordability index as calculated in accordance with subsection (e). Such data shall be made available in a manner that permits the review and comparison of data submissions of individual institutions of higher education. Such data shall be presented in a form that is easily accessible and understandable and allows parents and students to make informed decisions based on the prices for typical full-time undergraduate students and the institution's rate of cost increase. The Secretary shall work with public and private entities to promote broad public awareness, particularly among middle and high school students and their families, of the information made available under this section, including by distribution to students who participate in or receive benefits from Federally funded education programs and other Federal programs determined by the Secretary.

`(e) College Affordability Index-

`(1) IN GENERAL- The Secretary shall, on the basis of the data submitted under subsection (a), calculate a college affordability index for each institution of higher education submitting such data and shall make the index available in accordance with subsection (d) as soon as operationally possible on the Department's college opportunity online Web site. Such index shall be presented in a manner so that the index for any institution is stated in a column or cell immediately adjacent to a column or cell containing the total tuition and fees of the institution.

`(2) CALCULATION OF INDEX- The college affordability index shall be equal to--

`(A) the percentage increase in the tuition and fees charged for a first-time, full-time, full-year undergraduate student between the first of the 3 most recent preceding academic years and the last of those 3 academic years; divided by

`(B) the percentage increase in the Consumer Price Index--All Urban Consumers (Current Series) from July of the first of those 3 academic years to July of the last of those 3 academic years.

`(f) Outcomes and Actions-

`(1) RESPONSE FROM INSTITUTION- Effective on June 30, 2009, an institution that has a college affordability index that exceeds 2.0 for any 3-year interval ending on or after that date shall provide a report to the Secretary, in such a form, at such time, and containing such information as the Secretary may require. Such report shall include--

`(A) an explanation of the factors contributing to the increase in the institution's costs and in the tuition and fees charged to students;

`(B) a management plan stating the specific steps the institution is and will be taking to reduce its college affordability index;

`(C) an action plan, including a schedule, by which the institution will reduce increases in or stabilize, such costs and tuition and fees; and

`(D) if determinations of tuition and fee increases are not within the exclusive control of the institution, a description of the agency or instrumentality of State government or other entity that participates in such determinations and the authority exercised by such agency, instrumentality, or entity.

`(2) INFORMATION TO THE PUBLIC- Upon receipt of the institution's report and management plan under paragraph (1), the Secretary shall make the institution's report required under paragraph (1) available to the public in accordance with subsection (b).

`(3) QUALITY-EFFICIENCY TASK FORCES-

`(A) REQUIRED- Each institution subject to paragraph (1) that has a college affordability index that is in the highest 25 percent of such indexes of all institutions subject to paragraph (1) shall establish a quality-efficiency task force to review the operations of such institution.

`(B) MEMBERSHIP- Such task force shall include administrators and business and civic leaders and may include faculty, students, trustees, parents of students, and alumni of such institution.

`(C) FUNCTIONS- Such task force shall analyze institutional operating costs in comparison with such costs at other institutions within the class of institutions. Such analysis should identify areas where, in comparison with other institutions in such class, the institution operates more expensively to produce a similar result. Any identified areas should then be targeted for in-depth analysis for cost reduction opportunities.

`(D) REPORT- The results of the analysis by a quality-efficiency task force under this paragraph shall be included in the report to the Secretary under paragraph (1).

`(4) CONSEQUENCES FOR 2-YEAR CONTINUATION OF FAILURE- If the Secretary determines that the institution has failed to comply with the management plan and action plan submitted by the institution under this subsection following the next 2 academic years that begin after the submission of such plans, and has failed to reduce the college affordability index below 2.0 for such 2 academic years, the Secretary--

`(A) shall make available to the public a detailed report provided by the institution on all costs and expenditures, and on all tuition and fees charged to students, for such 2 academic years;

`(B) shall place the institution on an affordability alert status and shall make the information regarding the institution's failure available in accordance with subsection (d);

`(C) shall notify the institution's accrediting agency of the institution's failure; and

`(D) may require the institution to submit to a review and audit by the Inspector General of the Department of Education to determine the cause of the institution's failure.

`(5) INFORMATION TO STATE AGENCIES- Any institution that reports under paragraph (1)(C) that an agency or instrumentality of State government or other entity participates in the determinations of tuition and fee increases shall, prior to submitting any information to the Secretary under this subsection, submit such information to, and request the comments and input of, such agency, instrumentality, or entity. With respect to any such institution, the Secretary shall provide a copy of any communication by the Secretary with that institution to such agency, instrumentality, or entity.

`(6) EXEMPTIONS-

`(A) RELATIVE PRICE EXEMPTION- The Secretary shall, for any 3-year interval for which college affordability indexes are computed under paragraph (1), determine and publish the dollar amount that, for each class of institution described in paragraph (7) represents the maximum tuition and fees charged for a full-time undergraduate student in the least costly quartile of institutions within each such class during the last year of such 3-year interval. An institution that has a college affordability index computed under paragraph (1) that exceeds 2.0 for any such 3-year interval, but that, on average during such 3-year interval, charges less than such maximum tuition and fees shall not be subject to the actions required by subparagraph (B) or (C) of paragraph (1), or any action under paragraph (4), unless such institution, for a subsequent 3-year interval, charges more than such maximum tuition and fees.

`(B) DOLLAR INCREASE EXEMPTION- An institution that has a college affordability index computed under paragraph (1) that exceeds 2.0 for any 3-year interval, but that exceeds such 2.0 by a dollar amount that is less than $500, shall not be subject to the actions required by subparagraph (B) or (C) of paragraph (1), or any action under paragraph (4), unless such institution has a college affordability index for a subsequent 3-year interval that exceeds 2.0 by more than such dollar amount.

`(7) CLASSES OF INSTITUTIONS- For purposes of this subsection, the classes of institutions shall be those sectors used by the Integrated Postsecondary Education Data System, based on whether the institution is public, nonprofit private, or for-profit private, and whether the institution has a 4-year, 2-year, or less than 2-year program of instruction.

`(g) Fines- In addition to actions authorized in section 487(c), the Secretary may impose a fine in an amount not to exceed $25,000 on an institution of higher education for failing to provide the information described in this section in a timely and accurate manner, or for failing to otherwise cooperate with the National Center for Education Statistics regarding efforts to obtain data on the cost and price of higher education under this section and pursuant to the program participation agreement entered into under section 487.

`(h) GAO Study and Report-

`(1) GAO STUDY- The Comptroller General shall conduct a study of the policies and procedures implemented by institutions in increasing the affordability of postsecondary education. Such study shall include information with respect to--

`(A) a list of those institutions that--

`(i) have reduced their college affordability indexes; or

`(ii) are, as determined under subsection (f)(6)(A), within the least costly quartile of institutions within each class described in subsection (f)(7);

`(B) policies implemented to stem the increase in tuition and fees and institutional costs;

`(C) the extent to which room and board costs and prices changed;

`(D) the extent to which other services were altered to affect tuition and fees;

`(E) the extent to which the institution's policies affected student body demographics and time to completion;

`(F) what, if any, operational factors played a role in reducing tuition and fees;

`(G) the extent to which academic quality was affected, and how;

`(H) the extent to which policies and practices reducing costs and prices may be replicated from one institution to another; and

`(I) other information as necessary to determine best practices in increasing the affordability of postsecondary education.

`(2) INTERIM AND FINAL REPORTS- The Comptroller General shall submit an interim and a final report regarding the findings of the study required by paragraph (1) to the appropriate authorizing committees of Congress. The interim report shall be submitted not later than July 31, 2011, and the final report shall be submitted not later than July 31, 2013.

`(i) Student Aid Recipient Survey-

`(1) SURVEY REQUIRED- The Secretary shall conduct a survey of student aid recipients under title IV on a regular cycle and State-by-State basis, but not less than once every 4 years--

`(A) to identify the population of students receiving Federal student aid;

`(B) to describe the income distribution and other socioeconomic characteristics of federally aided students;

`(C) to describe the combinations of aid from State, Federal, and private sources received by students from all income groups;

`(D) to describe the debt burden of educational loan recipients and their capacity to repay their education debts, and the impact of such debt burden on career choices;

`(E) to describe the role played by the price of postsecondary education in the determination by students of what institution to attend; and

`(F) to describe how the increased costs of textbooks and other instructional materials affects the costs of postsecondary education to students.

`(2) SURVEY DESIGN- The survey shall be representative of full-time and part-time, undergraduate, graduate, and professional and current and former students in all types of institutions, and designed and administered in consultation with the Congress and the postsecondary education community.

`(3) DISSEMINATION- The Secretary shall disseminate the information resulting from the survey in both printed and electronic form.

`(j) Regulations- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.'.

SEC. 109. DATABASES OF STUDENT INFORMATION.

Part C of title I is further amended by adding at the end the following new section:

`SEC. 132. DATABASES OF STUDENT INFORMATION PROHIBITED.

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

`(b) Exception- The provisions of subsection (a) shall not affect the loan obligation enforcement activities described in section 485B of this Act.'.

SEC. 110. PERFORMANCE-BASED ORGANIZATION.

Section 141 (20 U.S.C. 1018) is amended--

(1) in subsection (a)(2)(B)--

(A) by inserting `unit' after `to reduce the'; and

(B) by inserting `and, to the extent practicable, the total costs of administering those programs' after `those programs';

(2) in subsection (c)--

(A) in paragraph (1)(A), by striking `Each year' and inserting `Each fiscal year';

(B) in paragraph (1)(B), by inserting `secondary markets, guaranty agencies,' after `lenders,'; and

(C) in paragraph (2)(B), by striking `Chief Financial Officer Act of 1990 and' and inserting `Chief Financial Officers Act of 1990,' and by inserting before the period at the end the following: `, and other relevant statutes'; and

(3) in subsection (f)(3)(A), by striking `paragraph (1)(A)' and inserting `paragraph (1)'.

TITLE II--TEACHER PREPARATION

SEC. 201. TEACHER QUALITY ENHANCEMENT GRANTS.

Part A of title II (20 U.S.C. 1021 et seq.) is amended to read as follows:

`PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND PARTNERSHIPS

`SEC. 201. PURPOSES; DEFINITIONS.

`(a) Purposes- The purposes of this part are to--

`(1) improve student academic achievement;

`(2) improve the quality of the current and future teaching force by improving the preparation of prospective teachers and enhancing professional development activities;

`(3) hold institutions of higher education accountable for preparing highly qualified teachers; and

`(4) recruit qualified individuals, including minorities and individuals from other occupations, into the teaching force.

`(b) Definitions- In this part:

`(1) ARTS AND SCIENCES- The term `arts and sciences' means--

`(A) when referring to an organizational unit of an institution of higher education, any academic unit that offers 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 matter area, the disciplines or content areas in which academic majors are offered by the arts and science organizational unit.

`(2) EXEMPLARY TEACHER- The term `exemplary teacher' has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

`(3) HIGHLY QUALIFIED- The term `highly qualified' when used with respect to an individual means that the individual is highly qualified as determined under section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801) or section 602 of the Individuals with Disabilities Education Act (20 U.S.C. 1401).

`(4) HIGH-NEED LOCAL EDUCATIONAL AGENCY- The term `high-need local educational agency' means a local educational agency--

`(A)(i)(I) that serves not fewer than 10,000 children from families with incomes below the poverty line; or

`(II) for which not less than 25 percent of the children served by the agency are from families with incomes below the poverty line;

`(ii) that is among those serving the highest number or percentage of children from families with incomes below the poverty line in the State, but this clause applies only in a State that has no local educational agency meeting the requirements of clause (i); or

`(iii) with a total of less than 600 students in average daily attendance at the schools that are served by the agency and all of whose schools are designated with a school locale code of 7, as determined by the Secretary; and

`(B)(i) for which there is a high percentage of teachers not teaching in the academic subjects or grade levels that the teachers were trained to teach; or

`(ii) for which there is a high percentage of teachers with emergency, provisional, or temporary certification or licensing.

`(5) POVERTY LINE- The term `poverty line' means the poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a family of the size involved.

`(6) PROFESSIONAL DEVELOPMENT- The term `professional development' has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

`(7) 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 (20 U.S.C. 6368).

`(8) SCIENTIFICALLY BASED RESEARCH- The term `scientifically based research' has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

`(9) TEACHING SKILLS- The term `teaching skills' means skills that--

`(A) are based on scientifically based research;

`(B) enable teachers to effectively convey and explain subject matter content;

`(C) lead to increased student academic achievement; and

`(D) use strategies that--

`(i) are specific to subject matter;

`(ii) include ongoing assessment of student learning;

`(iii) focus on identification and tailoring of academic instruction to students's specific learning needs; and

`(iv) focus on classroom management.

`SEC. 202. STATE GRANTS.

`(a) In General- From amounts made available under section 210(1) for a fiscal year, the Secretary is authorized to award grants under this section, on a competitive basis, to eligible States to enable the eligible States to carry out the activities described in subsection (d).

`(b) Eligible State-

`(1) DEFINITION- In this part, the term `eligible State' means--

`(A) the Governor of a State; or

`(B) in the case of a State for which the constitution or law of such State designates another individual, entity, or agency in the State to be responsible for teacher certification and preparation activity, such individual, entity, or agency.

`(2) CONSULTATION- The Governor or the individual, entity, or agency designated under paragraph (1)(B) shall consult with the Governor, State board of education, State educational agency, State agency for higher education, or State agency responsible for early childhood education and programs, as appropriate, with respect to the activities assisted under this section.

`(3) CONSTRUCTION- Nothing in this subsection shall be construed to negate or supersede the legal authority under State law of any State agency, State entity, or State public official over programs that are under the jurisdiction of the agency, entity, or official.

`(c) Application- To be eligible to receive a grant under this section, an eligible State shall submit an application to the Secretary that--

`(1) meets the requirement of this section;

`(2) demonstrates that the State is in full compliance with sections 207 and 208;

`(3) includes a description of how the eligible State intends to use funds provided under this section;

`(4) includes measurable objectives for the use of the funds provided under the grant;

`(5) demonstrates the State has submitted and is actively implementing a plan that meets the requirements of sections 1111(h)(1)(C)(viii) and 1119 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(h)(1)(C)(viii) and 6319); and

`(6) contains such other information and assurances as the Secretary may require.

`(d) Uses of Funds- An eligible State that receives a grant under this section shall use the grant funds to reform teacher preparation requirements, to coordinate with State activities under section 2113(c) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6613(c)), and to ensure that current and future teachers are highly qualified, by carrying out one or more of the following activities:

`(1) REFORMS- Ensuring that all teacher preparation programs in the State are preparing teachers who are highly qualified, are able to understand scientifically based research and its applicability, and are able to use advanced technology effectively in the classroom, including use for instructional techniques to improve student academic achievement, by assisting such programs--

`(A) to retrain faculty; and

`(B) to design (or redesign) teacher preparation programs so they--

`(i) are based on rigorous academic content, scientifically based research (including scientifically based reading research), and challenging State student academic content standards; and

`(ii) promote strong teaching skills.

`(2) CERTIFICATION OR LICENSURE REQUIREMENTS- Reforming teacher certification (including recertification) or licensing requirements to ensure that--

`(A) teachers have the subject matter knowledge and teaching skills in the academic subjects that the teachers teach that are necessary to help students meet challenging State student academic achievement standards; and

`(B) such requirements are aligned with challenging State academic content standards.

`(3) ALTERNATIVES TO TRADITIONAL TEACHER PREPARATION AND STATE CERTIFICATION- Providing prospective teachers with alternative routes to State certification and traditional preparation to become highly qualified teachers through--

`(A) innovative approaches that reduce unnecessary barriers to State certification while producing highly qualified teachers, which may include articulation agreements between institutions of higher education;

`(B) programs that provide support to teachers during their initial years in the profession; and

`(C) alternative routes to State certification of teachers for qualified individuals, including mid-career professionals from other occupations, former military personnel, and recent college graduates with records of academic distinction.

`(4) INNOVATIVE PROGRAMS- Planning and implementing innovative programs to enhance the ability of institutions of higher education to prepare highly qualified teachers, such as charter colleges of education or university and local educational agency partnership schools, that--

`(A) permit flexibility in meeting State requirements as long as graduates, during their initial years in the profession, increase student academic achievement;

`(B) provide long-term data gathered from teachers' performance over multiple years in the classroom on the ability to increase student academic achievement;

`(C) ensure high-quality preparation of teachers from underrepresented groups; and

`(D) create performance measures that can be used to document the effectiveness of innovative methods for preparing highly qualified teachers.

`(5) MERIT PAY- Developing, or assisting local educational agencies in developing--

`(A) merit-based performance systems that reward teachers who increase student academic achievement; and

`(B) strategies that provide differential and bonus pay in high-need local educational agencies to retain--

`(i) principals;

`(ii) highly qualified teachers who teach in high-need academic subjects, such as reading, mathematics, and science;

`(iii) highly qualified teachers who teach in schools identified for school improvement under section 1116(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6316(b));

`(iv) special education teachers;

`(v) teachers specializing in teaching limited English proficient children; and

`(vi) highly qualified teachers in urban and rural schools or districts.

`(6) TEACHER ADVANCEMENT- Developing, or assisting local educational agencies in developing, teacher advancement and retention initiatives that promote professional growth and emphasize multiple career paths (such as paths to becoming a highly qualified mentor teacher or exemplary teacher) and pay differentiation.

`(7) TEACHER REMOVAL- Developing and implementing effective mechanisms to ensure that local educational agencies and schools are able to remove expeditiously incompetent or unqualified teachers consistent with procedures to ensure due process for the teachers.

`(8) TECHNICAL ASSISTANCE- Providing technical assistance to low-performing teacher preparation programs within institutions of higher education identified under section 208(a).

`(9) TEACHER EFFECTIVENESS- Developing--

`(A) systems to measure the effectiveness of teacher preparation programs and professional development programs; and

`(B) strategies to document gains in student academic achievement or increases in teacher mastery of the academic subjects the teachers teach as a result of such programs.

`(10) TEACHER RECRUITMENT AND RETENTION- Undertaking activities that--

`(A) develop and implement effective mechanisms to ensure that local educational agencies and schools are able effectively to recruit and retain highly qualified teachers; or

`(B) are described in section 204(d).

`(11) EARLY CHILDHOOD EDUCATOR- Developing strategies--

`(A) to improve the qualifications of preschool teachers, which may include State certification for such teachers;

`(B) to improve and expand preschool teacher preparation programs; and

`(C) to reduce unnecessary burdens to the attainment of a bachelor's degree in early childhood education and increase the number of bilingual early childhood educators, which may include developing articulation agreements between institutions of higher education.

`(12) GIFTED AND TALENTED STUDENTS- Incorporating the learning needs of gifted and talented students into the activities described in paragraph (1), (2), or (3) in order to ensure that new teachers possess the basic knowledge and skills necessary to meet the educational needs of gifted and talented students.

`(13) NEW-TEACHER MENTORING ON THE NEEDS OF GIFTED AND TALENTED STUDENTS- Establishing or expanding new-teacher mentoring and assessment programs (including induction and evaluation programs) that are a part of a licensure process which is designed to demonstrate that new teachers possess basic knowledge of the classroom indicators of giftedness, are able to identify student learning differences among gifted students, and are able to provide instruction to accommodate such differences.

`(14) SPECIAL EDUCATION, MATH, AND SCIENCE FACULTY- Supporting the development of new special education, math, and science faculty positions in institutions of higher education dedicated to the preparation of highly qualified special education, math, and science teachers (as defined by section 9101 of the Elementary and Secondary Education Act or section 602 of the Individuals with Disabilities Education Act), with matching funds from institutions of higher education and a commitment to continue new faculty positions when Federal funding ends.

`(15) SUBJECT AREA EVALUATION- Assessing the performance of teacher preparation programs within institutions of higher education in the State using an assessment which provides comparisons across such schools in the State based upon indicators including teacher candidate knowledge in subject areas in which such candidate has been prepared to teach. Such information shall be made publicly available and widely disseminated.

`(e) Evaluation-

`(1) EVALUATION SYSTEM- An eligible State that receives a grant under this section shall develop and utilize a system to evaluate annually the effectiveness of teacher preparation programs and professional development activities within the State in producing gains in--

`(A) the teacher's annual contribution to improving student academic achievement, as measured by State academic assessments required under section 1111(b)(3) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(b)(3)); and

`(B) teacher mastery of the academic subjects they teach, as measured by pre- and post-participation tests of teacher knowledge, as appropriate.

`(2) USE OF EVALUATION SYSTEM- Such evaluation system shall be used by the State to evaluate--

`(A) activities carried out using funds provided under this section; and

`(B) the quality of its teacher education programs.

`(3) PUBLIC REPORTING- The State shall make the information described in paragraph (1) widely available through public means, such as posting on the Internet, distribution to the media, and distribution through public agencies.

`SEC. 203. PARTNERSHIP GRANTS.

`(a) Grants- From amounts made available under section 210(2) for a fiscal year, the Secretary is authorized to award grants under this section, on a competitive basis, to eligible partnerships to enable the eligible partnerships to carry out the activities described in subsections (d) and (e).

`(b) Definitions-

`(1) ELIGIBLE PARTNERSHIPS- In this part, the term `eligible partnership' means an entity that--

`(A) shall include--

`(i) a partner institution;

`(ii) a school of arts and sciences;

`(iii) a high-need local educational agency; and

`(iv) a public or private educational organization; and

`(B) may include a Governor, State educational agency, the State board of education, the State agency for higher education, an institution of higher education not described in subparagraph (A), a public charter school, a public or private elementary school or secondary school, a public or private educational organization, a business, a science-, mathematics-, or technology-oriented entity, a faith-based or community organization, a prekindergarten program, a teacher organization, an education service agency, a consortia of local educational agencies, or a nonprofit telecommunications entity.

`(2) PARTNER INSTITUTION- In this section, the term `partner institution' means an institution of higher education, the teacher training program of which demonstrates that--

`(A) graduates from the teacher training program exhibit strong performance on State-determined qualifying assessments for new teachers through--

`(i) demonstrating that the graduates of the program who intend to enter the field of teaching have passed all of the applicable State qualification assessments for new teachers, which shall include an assessment of each prospective teacher's subject matter knowledge in the content area or areas in which the teacher intends to teach; or

`(ii) being ranked among the highest-performing teacher preparation programs in the State as determined by the State--

`(I) using criteria consistent with the requirements for the State report card under section 207(a); and

`(II) using the State report card on teacher preparation required under section 207(a); or

`(B) the teacher training program requires all the students of the program to participate in intensive clinical experience, to meet high academic standards, and--

`(i) in the case of secondary school candidates, to successfully complete an academic major in the subject area in which the candidate intends to teach or to demonstrate competence through a high level of performance in relevant content areas; and

`(ii) in the case of elementary school candidates, to successfully complete an academic major in the arts and sciences or to demonstrate competence through a high level of performance in core academic subject areas.

`(c) Application- Each eligible partnership desiring a grant under this section shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require. Each such application shall--

`(1) contain a needs assessment of all the partners with respect to teaching and learning and a description of how the partnership will coordinate with other teacher training or professional development programs, and how the activities of the partnership will be consistent with State, local, and other education reform activities that promote student academic achievement;

`(2) contain a resource assessment that describes the resources available to the partnership, the intended use of the grant funds, including a description of how the grant funds will be used in accordance with subsection (f), and the commitment of the resources of the partnership to the activities assisted under this part, including financial support, faculty participation, time commitments, and continuation of the activities when the grant ends;

`(3) contain a description of--

`(A) how the partnership will meet the purposes of this part;

`(B) how the partnership will carry out the activities required under subsection (d) and any permissible activities under subsection (e);

`(C) the partnership's evaluation plan pursuant to section 206(b);

`(D) how faculty of the teacher preparation program at the partner institution will serve, over the term of the grant, with highly qualified teachers in the classrooms of the high-need local educational agency included in the partnership;

`(E) how the partnership will ensure that teachers, principals, and superintendents in private elementary and secondary schools located in the geographic areas served by an eligible partnership under this section will participate equitably in accordance with section 9501 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7881);

`(F) how the partnership will design and implement a clinical program component that includes close supervision of student teachers by faculty of the teacher preparation program at the partner institution and mentor teachers;

`(G) how the partnership will design and implement an induction program to support all new teachers through the first 3 years of teaching that includes mentors who are trained and compensated by the partnership for their work with new teachers; and

`(H) how the partnership will collect, analyze, and use data on the retention of all teachers in schools located in the geographic areas served by the partnership to evaluate the effectiveness of its teacher support system; and

`(4) contain a certification from the high-need local educational agency included in the partnership that it has reviewed the application and determined that the grant proposed will comply with subsection (f).

`(d) Required Uses of Funds- An eligible partnership that receives a grant under this section shall use the grant funds to reform teacher preparation requirements, to coordinate with State activities under section 2113(c) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6613(c)), and to ensure that current and future teachers are highly qualified, by carrying out one or more of the following activities:

`(1) REFORMS- Implementing reforms within teacher preparation programs to ensure that such programs are preparing teachers who are highly qualified, are able to understand scientifically based research and its applicability, and are able to use advanced technology effectively in the classroom, including use for instructional techniques to improve student academic achievement, by--

`(A) retraining faculty; and

`(B) designing (or redesigning) teacher preparation programs so they--

`(i) are based on rigorous academic content, scientifically based research (including scientifically based reading research), and challenging State student academic content standards; and

`(ii) promote strong teaching skills.

`(2) CLINICAL EXPERIENCE AND INTERACTION- Providing sustained and high-quality preservice and in-service 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 for teachers, including preparation time and release time, for such interaction.

`(3) PROFESSIONAL DEVELOPMENT- Creating opportunities for enhanced and ongoing professional development that improves the academic content knowledge of teachers in the subject areas in which the teachers are certified to teach or in which the teachers are working toward certification to teach, and that promotes strong teaching skills.

`(4) TEACHER PREPARATION- Developing, or assisting local educational agencies in developing, professional development activities that--

`(A) provide training in how to teach and address the needs of students with different learning styles, particularly students with disabilities, limited English proficient students, gifted and talented students, and students with special learning needs; and

`(B) provide training in methods of--

`(i) improving student behavior in the classroom; and

`(ii) identifying early and appropriate interventions to help students described in subparagraph (A) learn.

`(e) Allowable Uses of Funds- An eligible partnership that receives a grant under this section may use such funds to carry out the following activities:

`(1) ALTERNATIVES TO TRADITIONAL TEACHER PREPARATION AND STATE CERTIFICATION- Providing prospective teachers with alternative routes to State certification and traditional preparation to become highly qualified teachers through--

`(A) innovative approaches that reduce unnecessary barriers to teacher preparation producing highly qualified teachers, which may include articulation agreements between institutions of higher education;

`(B) programs that provide support during a teacher's initial years in the profession; and

`(2) DISSEMINATION AND COORDINATION- Broadly disseminating information on effective practices used by the partnership, and coordinating with the activities of the Governor, State board of education, State higher education agency, and State educational agency, as appropriate.

`(3) MANAGERIAL AND LEADERSHIP SKILLS- Developing and implementing professional development programs for principals and superintendents that enable them to be effective school leaders and prepare all students to meet challenging State academic content and student academic achievement standards.

`(4) TEACHER RECRUITMENT- Activities--

`(A) to encourage students to become highly qualified teachers, such as extracurricular enrichment activities; and

`(B) activities described in section 204(d).

`(5) CLINICAL EXPERIENCE IN SCIENCE, MATHEMATICS, AND TECHNOLOGY- Creating opportunities for clinical experience and training, by participation in the business, research, and work environments with professionals, in areas relating to science, mathematics, and technology for teachers and prospective teachers, including opportunities for use of laboratory equipment, in order for the teacher to return to the classroom for at least 2 years and provide instruction that will raise student academic achievement.

`(6) COORDINATION WITH COMMUNITY COLLEGES- Coordinating with community colleges to implement teacher preparation programs, including through distance learning or articulation agreements, for the purposes of allowing prospective teachers--

`(A) to attain a bachelor's degree and State certification or licensure; and

`(B) to become highly qualified teachers.

`(7) TEACHER MENTORING- Establishing or implementing a teacher mentoring program that--

`(A) includes minimum qualifications for mentors;

`(B) provides training and stipends for mentors;

`(C) provides mentoring programs for teachers in their first 3 years of teaching;

`(D) provides regular and ongoing opportunities for mentors and mentees to observe each other's teaching methods in classroom settings during the school day;

`(E) establishes an evaluation and accountability plan for activities conducted under this paragraph that includes rigorous objectives to measure the impact of such activities; and

`(F) provides for a report to the Secretary on an annual basis regarding the partnership's progress in meeting the objectives described in subparagraph (E).

`(8) COMPUTER SOFTWARE FOR MULTILINGUAL EDUCATION- Training teachers to use computer software for multilingual education to address the needs of limited English proficient students.

`(9) GIFTED AND TALENTED STUDENTS- Increasing the knowledge and skills of preservice teachers participating in activities under subsection (d) in the educational and related needs of gifted and talented students by, among other strategies, infusing teacher coursework with units on the characteristics of high-ability learners, using assessments to identify preexisting knowledge and skills among students, and developing teaching strategies that are driven by the learner's progress.

`(10) REDUCING THE SHORTAGE OF HIGHLY QUALIFIED SPECIAL EDUCATION, MATH, AND SCIENCE TEACHERS- Increasing the number of highly qualified special education, math, and science teachers (as defined by section 9101 of the Elementary and Secondary Education Act or section 602 of the Individuals with Disabilities Education Act) through such activities as recruitment, scholarships for tuition, and new teacher mentoring.

`(f) Special Rule- At least 50 percent of the funds made available to an eligible partnership under this section shall be used directly to benefit the high-need local educational agency included in the partnership. Any entity described in subsection (b)(1)(A) may be the fiscal agent under this section.

`(g) Construction- Nothing in this section shall be construed to prohibit an eligible partnership from using grant funds to coordinate with the activities of more than one Governor, State board of education, State educational agency, local educational agency, or State agency for higher education.

`(h) Supplement, not Supplant- Funds made available under this section shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to carry out the purposes of this section.

`SEC. 204. TEACHER RECRUITMENT GRANTS.

`(a) Program Authorized- From amounts made available under section 210(3) for a fiscal year, the Secretary is authorized to award grants, on a competitive basis, to eligible applicants to enable the eligible applicants to carry out activities described in subsection (d).

`(b) Eligible Applicant Defined- In this part, the term `eligible applicant' means--

`(1) an eligible State described in section 202(b); or

`(2) an eligible partnership described in section 203(b).

`(c) Application- Any eligible applicant desiring to receive a grant under this section shall submit an application to the Secretary at such time, in such form, and containing such information as the Secretary may require, including--

`(1) a description of the assessment that the eligible applicant, and the other entities with whom the eligible applicant will carry out the grant activities, have undertaken to determine the most critical needs of the participating high-need local educational agencies;

`(2) a description of the activities the eligible applicant will carry out with the grant, including the extent to which the applicant will use funds to recruit minority students to become highly qualified teachers; and

`(3) a description of the eligible applicant's plan for continuing the activities carried out with the grant, once Federal funding ceases.

`(d) Uses of Funds- Each eligible applicant receiving a grant under this section shall use the grant funds--

`(1)(A) to award scholarships to help students, such as individuals who have been accepted for their first year, or who are enrolled in their first or second year, of a program of undergraduate education at an institution of higher education, pay the costs of tuition, room, board, and other expenses of completing a teacher preparation program;

`(B) to provide support services, if needed to enable scholarship recipients--

`(i) to complete postsecondary education programs; or

`(ii) to transition from a career outside of the field of education into a teaching career; and

`(C) for followup services provided to former scholarship recipients during the recipients first 3 years of teaching; or

`(2) to develop and implement effective mechanisms to ensure that high-need local educational agencies and schools are able effectively to recruit highly qualified teachers.

`(e) Additional Discretionary Uses of Funds- In addition to the uses described in subsection (d), each eligible applicant receiving a grant under this section may use the grant funds--

`(1) to develop and implement effective mechanisms to recruit into the teaching profession employees from--

`(A) high-demand industries, including technology industries; and

`(B) the fields of science, mathematics, and engineering;

`(2) to conduct outreach and coordinate with inner city and rural secondary schools to encourage students to pursue teaching as a career;

`(3) to develop and implement dual degree programs that enable students at institutions of higher education to earn two undergraduate degrees concurrently, one of such degrees being in education and the other in the subject matter of the student's choosing; and

`(4) to recruit high achieving students, bilingual students, and other qualified candidates into early childhood education programs.

`(f) Service Requirements-

`(1) IN GENERAL- The Secretary shall establish such requirements as the Secretary determines necessary to ensure that recipients of scholarships under this section who complete teacher education programs--

`(A) subsequently teach in a high-need local educational agency for a period of time equivalent to--

`(i) one year; increased by

`(ii) the period for which the recipient received scholarship assistance; or

`(B) repay the amount of the scholarship.

`(2) USE OF REPAYMENTS- The Secretary shall use any such repayments to carry out additional activities under this section.

`(g) Priority- The Secretary shall give priority under this section to eligible applicants who provide an assurance that they will recruit a high percentage of minority students to become highly qualified teachers.

`SEC. 205. ADMINISTRATIVE PROVISIONS.

`(a) Duration; One-Time Awards; Payments-

`(1) DURATION-

`(A) ELIGIBLE STATES AND ELIGIBLE APPLICANTS- Grants awarded to eligible States and eligible applicants under this part shall be awarded for a period not to exceed 3 years.

`(B) ELIGIBLE PARTNERSHIPS- Grants awarded to eligible partnerships under this part shall be awarded for a period of 5 years.

`(2) ONE-TIME AWARD- An eligible partnership may receive a grant under each of sections 203 and 204, as amended by the College Access and Opportunity Act of 2005, only once.

`(3) PAYMENTS- The Secretary shall make annual payments of grant funds awarded under this part.

`(b) Peer Review-

`(1) PANEL- The Secretary shall provide the applications submitted under this part to a peer review panel for evaluation. With respect to each application, the peer review panel shall initially recommend the application for funding or for disapproval.

`(2) PRIORITY- In recommending applications to the Secretary for funding under this part, the panel shall--

`(A) with respect to grants under section 202, give priority to eligible States that--

`(i) have initiatives to reform State teacher certification requirements that are based on rigorous academic content, scientifically based research, including scientifically based reading research, and challenging State student academic content standards;

`(ii) have innovative reforms to hold institutions of higher education with teacher preparation programs accountable for preparing teachers who are highly qualified and have strong teaching skills; or

`(iii) have innovative efforts aimed at reducing the shortage of highly qualified teachers in high poverty urban and rural areas; and

`(B) with respect to grants under section 203--

`(i) give priority to applications from broad-based eligible partnerships that involve businesses and community organizations; and

`(ii) take into consideration--

`(I) providing an equitable geographic distribution of the grants throughout the United States; and

`(II) the potential of the proposed activities for creating improvement and positive change.

`(3) SECRETARIAL SELECTION- The Secretary shall determine, based on the peer review process, which application shall receive funding and the amounts of the grants. In determining grant amounts, the Secretary shall take into account the total amount of funds available for all grants under this part and the types of activities proposed to be carried out.

`(c) Matching Requirements-

`(1) STATE GRANTS- Each eligible State receiving a grant under section 202 or 204 shall provide, from non-Federal sources, an amount equal to 50 percent of the amount of the grant (in cash or in kind) to carry out the activities supported by the grant.

`(2) PARTNERSHIP GRANTS- Each eligible partnership receiving a grant under section 203 or 204 shall provide, from non-Federal sources (in cash or in kind), an amount equal to 25 percent of the grant for the first year of the grant, 35 percent of the grant for the second year of the grant, and 50 percent of the grant for each succeeding year of the grant.

`(d) Limitation on Administrative Expenses- An eligible State or eligible partnership that receives a grant under this part may not use more than 2 percent of the grant funds for purposes of administering the grant.

`SEC. 206. ACCOUNTABILITY AND EVALUATION.

`(a) State Grant Accountability Report- An eligible State that receives a grant under section 202 shall submit an annual accountability report to the Secretary and the authorizing committees. Such report shall include a description of the degree to which the eligible State, in using funds provided under such section, has made substantial progress in meeting the following goals:

`(1) PERCENTAGE OF HIGHLY QUALIFIED TEACHERS- Increasing the percentage of highly qualified teachers in the State as required by section 1119 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6319) and section 602 of the Individuals with Disabilities Act (20 U.S.C. 1401).

`(2) STUDENT ACADEMIC ACHIEVEMENT- Increasing student academic achievement for all students, which may be measured through the use of value-added assessments, as defined by the eligible State.

`(3) RAISING STANDARDS- Raising the State academic standards required to enter the teaching profession as a highly qualified teacher.

`(4) INITIAL CERTIFICATION OR LICENSURE- Increasing success in the pass rate for initial State teacher certification or licensure, or increasing the numbers of qualified individuals being certified or licensed as teachers through alternative routes to certification and licensure.

`(5) DECREASING TEACHER SHORTAGES- Decreasing shortages of highly qualified teachers in poor urban and rural areas.

`(6) INCREASING OPPORTUNITIES FOR RESEARCH-BASED PROFESSIONAL DEVELOPMENT- Increasing opportunities for enhanced and ongoing professional development that--

`(A) improves the academic content knowledge of teachers in the subject areas in which the teachers are certified or licensed to teach or in which the teachers are working toward certification or licensure to teach; and

`(B) promotes strong teaching skills.

`(7) TECHNOLOGY INTEGRATION- Increasing the number of teachers prepared effectively to integrate technology into curricula and instruction and who use technology to collect, manage, and analyze data to improve teaching, learning, decisionmaking, and parental involvement for the purpose of increasing student academic achievement.

`(b) Eligible Partnership Evaluation- Each eligible partnership applying for a grant under section 203 shall establish, and include in the application submitted under section 203(c), an evaluation plan that includes strong performance objectives. The plan shall include objectives and measures for--

`(1) increased student achievement for all students, as measured by the partnership;

`(2) increased teacher retention in the first 3 years of a teacher's career;

`(3) increased success in the pass rate for initial State certification or licensure of teachers;

`(4) increased percentage of highly qualified teachers; and

`(5) increasing the number of teachers trained effectively to integrate technology into curricula and instruction and who use technology to collect, manage, and analyze data to improve teaching, learning, and decisionmaking for the purpose of improving student academic achievement.

`(c) Revocation of Grant-

`(1) REPORT- Each eligible State or eligible partnership receiving a grant under section 202 or 203 shall report annually on the progress of the eligible State or eligible partnership toward meeting the purposes of this part and the goals, objectives, and measures described in subsections (a) and (b).

`(2) REVOCATION-

`(A) ELIGIBLE STATES AND ELIGIBLE APPLICANTS- If the Secretary determines that an eligible State or eligible applicant is not making substantial progress in meeting the purposes, goals, objectives, and measures, as appropriate, by the end of the second year of a grant under this part, then the grant payment shall not be made for the third year of the grant.

`(B) ELIGIBLE PARTNERSHIPS- If the Secretary determines that an eligible partnership is not making substantial progress in meeting the purposes, goals, objectives, and measures, as appropriate, by the end of the third year of a grant under this part, then the grant payments shall not be made for any succeeding year of the grant.

`(d) Evaluation and Dissemination- The Secretary shall evaluate the activities funded under this part and report annually the Secretary's findings regarding the activities to the authorizing committees. The Secretary shall broadly disseminate successful practices developed by eligible States and eligible partnerships under this part, and shall broadly disseminate information regarding such practices that were found to be ineffective.

`SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.

`(a) State Report Card on the Quality of Teacher Preparation- Each State that receives funds under this Act shall provide to the Secretary annually, in a uniform and comprehensible manner that conforms with the definitions and methods established by the Secretary, a State report card on the quality of teacher preparation in the State, both for traditional certification or licensure programs and for alternative certification or licensure programs, which shall include at least the following:

`(1) A description of the teacher certification and licensure assessments, and any other certification and licensure requirements, used by the State.

`(2) The standards and criteria that prospective teachers must meet in order to attain initial teacher certification or licensure and to be certified or licensed to teach particular subjects or in particular grades within the State.

`(3) A description of the extent to which the assessments and requirements described in paragraph (1) are aligned with the State's standards and assessments for students.

`(4) The percentage of students who have completed at least 50 percent of the requirements for a teacher preparation program at an institution of higher education or alternative certification program and who have taken and passed each of the assessments used by the State for teacher certification and licensure, and the passing score on each assessment that determines whether a candidate has passed that assessment.

`(5) For students who have completed at least 50 percent of the requirements for a teacher preparation program at an institution of higher education or alternative certification program, and who have taken and passed each of the assessments used by the State for teacher certification and licensure, each such institution's and each such program's average raw score, ranked by teacher preparation program, which shall be made available widely and publicly.

`(6) A description of each State's alternative routes to teacher certification, if any, and the number and percentage of teachers certified through each alternative certification route who pass State teacher certification or licensure assessments.

`(7) For each State, a description of proposed criteria for assessing the performance of teacher preparation programs in the State, including indicators of teacher candidate skills, academic content knowledge, and evidence of gains in student academic achievement.

`(8) For each teacher preparation program in the State, the number of students in the program, the number of minority students in the program, the average number of hours of supervised practice teaching required for those in the program, and the number of full-time equivalent faculty and students in supervised practice teaching.

`(b) Report of the Secretary on the Quality of Teacher Preparation-

`(1) REPORT CARD- The Secretary shall provide to Congress, and publish and make widely available, a report card on teacher qualifications and preparation in the United States, including all the information reported in paragraphs (1) through (8) of subsection (a). Such report shall identify which eligible States received a grant under this part, and the States in which eligible partnerships receiving grants are located. Such report shall be published and made available annually.

`(2) REPORT TO CONGRESS- The Secretary shall report to Congress--

`(A) a comparison of States' efforts to improve teaching quality; and

`(B) regarding the national mean and median scores on any standardized test that is used in more than one State for teacher certification or licensure.

`(3) SPECIAL RULE- In the case of programs with fewer than 10 students who have completed at least 50 percent of the requirements for a teacher preparation program taking any single initial teacher certification or licensure assessment during an academic year, the Secretary shall collect and publish information with respect to an average pass rate on State certification or licensure assessments taken over a 3-year period.

`(c) 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.

`(d) Institution and Program Report Cards on Quality of Teacher Preparation-

`(1) REPORT CARD- Each institution of higher education or alternative certification program that conducts a teacher preparation program that enrolls students receiving Federal assistance under this Act shall report annually to the State and the general public, in a uniform and comprehensible manner that conforms with the definitions and methods established by the Secretary, both for traditional certification or licensure programs and for alternative certification or licensure programs, the following information:

`(A) PASS RATE- (i) For the most recent year for which the information is available, the pass rate of each student who has completed at least 50 percent of the requirements for the teacher preparation program on the teacher certification or licensure assessments of the State in which the institution is located, but only for those students who took those assessments within 3 years of receiving a degree from the institution or completing the program.

`(ii) A comparison of the institution or program's pass rate for students who have completed at least 50 percent of the requirements for the teacher preparation program with the average pass rate for institutions and programs in the State.

`(iii) A comparison of the institution or program's average raw score for students who have completed at least 50 percent of the requirements for the teacher preparation program with the average raw scores for institutions and programs in the State.

`(iv) In the case of programs with fewer than 10 students who have completed at least 50 percent of the requirements for a teacher preparation program taking any single initial teacher certification or licensure assessment during an academic year, the institution shall collect and publish information with respect to an average pass rate on State certification or licensure assessments taken over a 3-year period.

`(B) PROGRAM INFORMATION- The number of students in the program, the average number of hours of supervised practice teaching required for those in the program, and the number of full-time equivalent faculty and students in supervised practice teaching.

`(C) STATEMENT- In States that require approval or accreditation of teacher education programs, a statement of whether the institution's program is so approved or accredited, and by whom.

`(D) DESIGNATION AS LOW-PERFORMING- Whether the program has been designated as low-performing by the State under section 208(a).

`(2) REQUIREMENT- The information described in paragraph (1) shall be reported through publications such as school catalogs and promotional materials sent to potential applicants, secondary school guidance counselors, and prospective employers of the institution's program graduates, including materials sent by electronic means.

`(3) FINES- In addition to the actions authorized in section 487(c), the Secretary may impose a fine not to exceed $25,000 on an institution of higher education for failure to provide the information described in this subsection in a timely or accurate manner.

`(e) Data Quality- Either--

`(1) the Governor of the State; or

`(2) in the case of a State for which the constitution or law of such State designates another individual, entity, or agency in the State to be responsible for teacher certification and preparation activity, such individual, entity, or agency;

shall attest annually, in writing, as to the reliability, validity, integrity, and accuracy of the data submitted pursuant to this section.

`SEC. 208. STATE FUNCTIONS.

`(a) State Assessment- In order to receive funds under this Act, a State shall have in place a procedure to identify and assist, through the provision of technical assistance, low-performing programs of teacher preparation within institutions of higher education. Such State shall provide the Secretary an annual list of such low-performing institutions that includes an identification of those institutions at risk of being placed on such list. Such levels of performance shall be determined solely by the State and may include criteria based upon information collected pursuant to this part. Such assessment shall be described in the report under section 207(a). A State receiving Federal funds under this title shall develop plans to close or reconstitute underperforming programs of teacher preparation within institutions of higher education.

`(b) Termination of Eligibility- Any institution of higher education that offers a program of teacher preparation in which the State has withdrawn the State's approval or terminated the State's financial support due to the low performance of the institution's teacher preparation program based upon the State assessment described in subsection (a)--

`(1) shall be ineligible for any funding for professional development activities awarded by the Department of Education; and

`(2) shall not be permitted to accept or enroll any student who receives aid under title IV of this Act in the institution's teacher preparation program.

`SEC. 209. GENERAL PROVISIONS.

`(a) Methods- In complying with sections 207 and 208, the Secretary shall ensure that States and institutions of higher education use fair and equitable methods in reporting and that the reporting methods do not allow identification of individuals.

`(b) Special Rule- For each State in which there are no State certification or licensure assessments, or for States that do not set minimum performance levels on those assessments--

`(1) the Secretary shall, to the extent practicable, collect data comparable to the data required under this part from States, local educational agencies, institutions of higher education, or other entities that administer such assessments to teachers or prospective teachers; and

`(2) notwithstanding any other provision of this part, the Secretary shall use such data to carry out requirements of this part related to assessments or pass rates.

`(c) Limitations-

`(1) FEDERAL CONTROL PROHIBITED- Nothing in this part shall be construed to permit, allow, encourage, or authorize any Federal control over any aspect of any private, religious, or home school, whether or not a home school is treated as a private school or home school under State law. This section shall not be construed to prohibit private, religious, or home schools from participation in programs or services under this part.

`(2) NO CHANGE IN STATE CONTROL ENCOURAGED OR REQUIRED- Nothing in this part shall be construed to encourage or require any change in a State's treatment of any private, religious, or home school, whether or not a home school is treated as a private school or home school under State law.

`(3) NATIONAL SYSTEM OF TEACHER CERTIFICATION PROHIBITED- Nothing in this part shall be construed to permit, allow, encourage, or authorize the Secretary to establish or support any national system of teacher certification.

`SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this part $300,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years, of which--

`(1) 45 percent shall be available for each fiscal year to award grants under section 202;

`(2) 45 percent shall be available for each fiscal year to award grants under section 203; and

`(3) 10 percent shall be available for each fiscal year to award grants under section 204.'.

SEC. 202. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.

(a) Eligibility- Section 222(a)(3)(D) (20 U.S.C. 1042(a)(3)(D)) is amended by inserting `nonprofit telecommunications entity,' after `community-based organization,'.

(b) Permissible Uses of Funds- Section 223(b)(1)(E) of the Higher Education Act of 1965 (20 U.S.C. 1043(b)(1)(E)) is amended to read as follows:

`(E) to use technology to collect, manage, and analyze data to improve teaching, learning, and decisionmaking for the purpose of increasing student academic achievement.'.

(c) Authorization of Appropriations- Section 224 (20 U.S.C. 1044) is amended by striking `each of fiscal years 2002 and 2003.' and inserting `fiscal year 2006 and each of the 5 succeeding fiscal years.'.

SEC. 203. CENTERS OF EXCELLENCE.

Title II (20 U.S.C. 1021 et seq.) is amended by adding at the end the following:

`PART C--CENTERS OF EXCELLENCE

`SEC. 231. PURPOSES; DEFINITIONS.

`(a) Purposes- The purposes of this part are--

`(1) to help recruit and prepare teachers, including minority teachers, to meet the national demand for a highly qualified teacher in every classroom; and

`(2) to increase opportunities for Americans of all educational, ethnic, class, and geographic backgrounds to become highly qualified teachers.

`(b) Definitions- As used in this part:

`(1) ELIGIBLE INSTITUTION- The term `eligible institution' means--

`(A) an institution of higher education that has a teacher preparation program that meets the requirements of section 203(b)(2) 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)); or

`(v) a Native Hawaiian-serving institution (as defined in section 317(b));

`(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 232 is located at an institution described in subparagraph (A).

`(2) HIGHLY QUALIFIED- The term `highly qualified' when used with respect to an individual means that the individual is highly qualified as determined under section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801) or section 602 of the Individuals with Disabilities Education Act (20 U.S.C. 1401).

`(3) 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 (20 U.S.C. 6368).

`(4) SCIENTIFICALLY BASED RESEARCH- The term `scientifically based research' has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

`SEC. 232. 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 part 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 based research, and are able to use advanced technology effectively in the classroom, including use for instructional techniques to improve student academic achievement, by--

`(A) retraining faculty; and

`(B) designing (or redesigning) teacher preparation programs that--

`(i) prepare teachers to close student achievement gaps, are based on rigorous academic content, scientifically based research (including scientifically based reading research), and challenging State student academic content 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; or

`(B) induction and support for teachers and principals during their first 3 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.

`(5) Disseminating information on effective practices for teacher preparation and successful teacher certification and licensure assessment preparation strategies.

`(6) Activities authorized under sections 202, 203, and 204.

`(c) Application- Any eligible institution desiring a grant under this section shall submit an application to the Secretary at such a time, in such a manner, and accompanied by such information the Secretary may require.

`(d) Minimum Grant Amount- The minimum amount of each grant under this part shall be $500,000.

`(e) Limitation on Administrative Expenses- An eligible institution that receives a grant under this part may not use more than 2 percent of the grant funds for purposes of administering the grant.

`(f) Regulations- The Secretary shall prescribe such regulations as may be necessary to carry out this part.

`SEC. 233. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this part $10,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years.'.

SEC. 204. TEACHER INCENTIVE FUND PROGRAM.

Title II (20 U.S.C. 1021 et seq.), as amended by section 203 of this Act, is further amended by adding at the end the following:

`PART D--TEACHER INCENTIVE FUND PROGRAM

`SEC. 241. PURPOSE; DEFINITIONS.

`(a) Purpose- The purpose of this part is to assist States, local educational agencies, and non-profit or for-profit organizations to develop and implement, or expand, innovative compensation systems to provide financial rewards for teachers and principals who raise student academic achievement and close the achievement gap, especially in the highest-need local educational agencies.

`(b) Definitions- For purposes of this part:

`(1) ELIGIBLE ENTITY- The term `eligible entity' means--

`(A) a local educational agency, including a charter school that is a local educational agency;

`(B) a State educational agency, or other State agency designated by the chief executive of the State; or

`(C) a partnership of--

`(i) one or more agencies described in subparagraph (A) or (B), or both; and

`(ii) at least one non-profit or for-profit organization.

`(2) HIGH-NEED LOCAL EDUCATIONAL AGENCY- The term `high-need local educational agency' has the meaning given that term in section 201.

`SEC. 242. TEACHER INCENTIVE FUND GRANTS.

`(a) Program Authorized-

`(1) IN GENERAL- From the amounts appropriated to carry out this part, the Secretary is authorized to award competitive grants of up to 5 years in length to eligible entities to develop and implement, or expand, a comprehensive performance-based compensation system for teachers and principals for one or more local educational agencies.

`(2) COMPREHENSIVE PERFORMANCE-BASED COMPENSATION SYSTEMS- A comprehensive performance-based compensation system developed and implemented, or expanded with funds under this part--

`(A) shall differentiate levels of compensation primarily on the basis of increases in student academic achievement; and

`(B) may--

`(i) differentiate levels of compensation on the basis of high-quality teachers' and principals' employment and success in hard-to-staff schools or high-need subject areas; and

`(ii) recognize teachers' and principals' skills and knowledge as demonstrated through--

`(I) successful fulfillment of additional responsibilities or job functions; and

`(II) evidence of high achievement and mastery of content knowledge and teaching skills.

`(b) Use of Funds- A grantee shall use grant funds provided under this part only to design and implement, or expand, in collaboration with teachers, principals, other school administrators, and members of the public, a compensation system consistent with the requirements of this part. Authorized activities under this part may include the following:

`(1) Developing appraisal systems that reflect clear and fair measures of student academic achievement.

`(2) Conducting outreach within the local educational agency (or agencies) or the State to gain input on how to construct the appraisal system and to develop support for it.

`(3) Paying, as part of a comprehensive performance-based compensation system, bonuses and increased salaries to teachers and principals who raise student academic achievement, so long as the grantee uses an increasing share of non-Federal funds to pay these monetary rewards each year of the grant.

`(4) Paying, as part of a comprehensive performance-based compensation system, additional bonuses to teachers who both raise student academic achievement and either teach in high-poverty schools or teach subjects that are difficult to staff, or both, so long as the grantee uses an increasing share of non-Federal funds to pay these monetary rewards each year of the grant.

`(5) Paying, as part of a comprehensive performance-based compensation system, additional bonuses to principals who both raise student academic achievement and serve in high-poverty schools, so long as the grantee uses an increasing share of non-Federal funds to pay these monetary rewards each year of the grant.

`(c) Applications- To be eligible to receive a grant under this part, an eligible entity shall submit an application that includes--

`(1) a description of the local educational agency or local educational agencies to be served by the project, including such demographic information as the Secretary may request;

`(2) information on student academic achievement and the quality of the teachers and principals in the local educational agency or agencies to be served by the project;

`(3) a description of the performance-based teacher and principal compensation system that the applicant proposes to develop and implement or expand;

`(4) a description of how the applicant will use grant funds under this part in each year of the grant;

`(5) an explanation of how the applicant will meet the requirement in subsection (b)(3) and how the grantee will continue its performance-based compensation system after the grant ends;

`(6) a description of the support and commitment from teachers, the community or local educational agency or agencies for the development and implementation, or expansion, of a performance-based teacher and principal compensation system;

`(7) a description of how teacher, principal and student performance will be measured and the baseline measurement units; and

`(8) a description, if applicable, of how the applicant will define the term `high-quality' for the purposes of subsection (a)(2)(B)(i), through the use of measurable indicators, such as effectiveness in raising student academic achievement, or demonstrated mastery of subject matter knowledge.

`(d) Priority- The Secretary shall give priority to applications for projects that would establish comprehensive performance-based compensation systems in high-need local educational agencies.

`SEC. 243. EVALUATIONS.

`The Secretary shall conduct an independent evaluation of the program under this part and may use up to 1 percent of the funds made available under this part or $1,000,000, whichever is less, for any fiscal year for the cost of the evaluation.

`SEC. 244. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this part $100,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years.'.

SEC. 205. TRANSITION.

The Secretary of Education shall take such actions as the Secretary determines to be appropriate to provide for the orderly implementation of this title.

TITLE III--INSTITUTIONAL AID

SEC. 301. TITLE III GRANTS FOR AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES.

(a) Eligible Institutions- Subsection (b) of section 316 (20 U.S.C. 1059c(b)) is amended to read as follows:

`(b) Definitions-

`(1) ELIGIBLE INSTITUTIONS- For purposes of this section, Tribal Colleges and Universities are the following:

`(A) any of the following institutions that qualify for funding under the Tribally Controlled College or University Assistance Act of 1978 or is listed in Equity in Educational Land Grant Status Act of 1994 (7 U.S.C. 301 note): Bay Mills Community College; Blackfeet Community College; Cankdeska Cikana Community College; Chief Dull Knife College; College of Menominee Nation; Crownpoint Institute of Technology; Dine College; D-Q University; Fond du Lac Tribal and Community College; Fort Belknap College; Fort Berthold Community College; Fort Peck Community College; Haskell Indian Nations University; Institute of American Indian and Alaska Native Culture and Arts Development; Lac Courte Oreilles Ojibwa Community College; Leech Lake Tribal College; Little Big Horn College; Little Priest Tribal College; Nebraska Indian Community College; Northwest Indian College; Oglala Lakota College; Saginaw Chippewa Tribal College; Salish Kootenai College; Si Tanka University--Eagle Butte Campus; Sinte Gleska University; Sisseton Wahpeton Community College; Sitting Bull College; Southwestern Indian Polytechnic Institute; Stone Child College; Tohono O'Odham Community College; Turtle Mountain Community College; United Tribes Technical College; and White Earth Tribal and Community College; and

`(B) any other institution that meets the definition of tribally controlled college or university in section 2 of the Tribally Controlled College or University Assistance Act of 1978, and meets all other requirements of this section.

`(2) INDIAN- The term `Indian' has the meaning given the term in section 2 of the Tribally Controlled College or University Assistance Act of 1978.'.

(b) Distance Learning- Subsection (c)(2) of such section is amended--

(1) by amending subparagraph (B) to read as follows:

`(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;';

(2) in subparagraph (C), by inserting before the semicolon at the end the following: `, or advanced degrees in tribal governance or tribal public policy';

(3) in subparagraph (D), by inserting before the semicolon at the end the following: `, in tribal governance, or tribal public policy';

(4) by striking `and' at the end of subparagraph (K);

(5) by redesignating subparagraph (L) as subparagraph (M); and

(6) by inserting after subparagraph (K) the following new subparagraph:

`(L) developing or improving facilities for Internet use or other distance learning academic instruction capabilities; and'.

`(d) Application and Allotment-

`(1) INSTITUTIONAL ELIGIBILITY- To be eligible to receive assistance under this section, a Tribal College or University shall be an eligible institution under section 312(b).

`(2) APPLICATION- Any Tribal College or University desiring to receive assistance under this section shall submit an application to the Secretary at such time, and in such manner, as the Secretary may reasonably require.

`(3) ALLOTMENTS TO INSTITUTIONS-

`(A) ALLOTMENT: PELL GRANT BASIS- From the amount appropriated to carry out this section for any fiscal year, the Secretary shall allot to each eligible institution a sum which bears the same ratio to one-half that amount as the number of Pell Grant recipients in attendance at such institution at the end of the award year preceding the beginning of that fiscal year bears to the total number of Pell Grant recipients at all eligible institutions.

`(B) ALLOTMENT: DEGREE AND CERTIFICATE BASIS- From the amount appropriated to carry out this section for any fiscal year, the Secretary shall allot to each eligible institution a sum which bears the same ratio to one-half that amount as the number of degrees or certificates awarded by such institution during the preceding academic year bears to the total number of degrees or certificates at all eligible institutions.

`(C) MINIMUM GRANT- Notwithstanding subparagraphs (A) and (B), the amount allotted to each institution under this section shall not be less than $400,000.

`(4) SPECIAL RULES-

`(A) CONCURRENT FUNDING- For the purposes of this part, no Tribal College or University that is eligible for and receives funds under this section shall concurrently receive funds under other provisions of this part or part B.

`(B) EXEMPTION- Section 313(d) shall not apply to institutions that are eligible to receive funds under this section.'.

SEC. 302. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

(a) Distance Learning- Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended--

(1) by amending subparagraph (B) to read as follows:

(2) in subparagraph (C), by inserting before the semicolon at the end the following: `, or advanced degrees in tribal governance or tribal public policy';

(3) in subparagraph (D), by inserting before the semicolon at the end the following: `, in tribal governance, or tribal public policy';

(4) by striking `and' at the end of subparagraph (G);

(5) by striking the period at the end of subparagraph (H) and inserting a semicolon; and

(6) by inserting after subparagraph (H) the following new subparagraph:

`(I) development or improvement of facilities for Internet use or other distance learning academic instruction capabilities; and'.

(b) Endowment Funds- Section 317(c) is further amended by adding at the end the following new paragraph:

`(3) ENDOWMENT FUNDS-

`(A) IN GENERAL- An Alaska Native or Native Hawaiian-serving institution may use not more than 20 percent of the grant funds provided under this section to establish or increase an endowment fund at the institution.

`(B) MATCHING REQUIREMENT- In order to be eligible to use grant funds in accordance with subparagraph (A), the institution shall provide to the endowment fund from non-Federal funds an amount equal to the Federal funds used in accordance with subparagraph (A), for the establishment or increase of the endowment fund.

`(C) APPLICABILITY OF OTHER PROVISIONS- The provisions of part C regarding the establishment or increase of an endowment fund, that the Secretary determines are not inconsistent with this paragraph, shall apply to funds used under subparagraph (A).'.

(c) Application Process- Section 317(d)(2) is amended by striking `Such application shall include--' and all that follows through `may require.'.

SEC. 303. GRANTS TO PART B INSTITUTIONS.

(a) Use of Funds-

(1) FACILITIES AND EQUIPMENT-

(A) UNDERGRADUATE INSTITUTIONS- Paragraph (2) of section 323(a) (20 U.S.C. 1062(a)) is amended to read as follows:

`(2) 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) GRADUATE AND PROFESSIONAL SCHOOLS- Paragraph (2) of section 326(c) is amended to read as follows:

`(2) 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;'.

(2) OUTREACH AND COLLABORATION- Paragraph (11) of section 323(a) is amended to read as follows:

`(11) Establishing community outreach programs and collaborative partnerships between part B institutions and local elementary or secondary schools. Such partnerships may include mentoring, tutoring, or other instructional opportunities that will boost student academic achievement and assist elementary and secondary school students in developing the academic skills and the interest to pursue postsecondary education.'.

(b) Technical Assistance- Section 323 (20 U.S.C. 1062) is amended--

(1) by redesignating subsection (c) as subsection (d); and

(2) by inserting after subsection (b) the following new subsection:

`(c) Technical Assistance-

`(1) IN GENERAL- An institution may not use more than 2 percent of the grant funds provided under this part to secure technical assistance services.

`(2) TECHNICAL ASSISTANCE SERVICES- Technical assistance services may include assistance with enrollment management, financial management, and strategic planning.

`(3) REPORT- The institution shall report to the Secretary on an annual basis, in such form as the Secretary requires, on the use of funds under this subsection.'.

(c) Distance Learning- Section 323(a)(2) (20 U.S.C. 1062(a)(2)) (as amended by subsection (a)(1)(A)) is further amended by inserting `development or improvement of facilities for Internet use or other distance learning academic instruction capabilities and' after `including'.

(d) Minimum Grants- Section 324(d)(1) (20 U.S.C. 1063(d)(1)) is amended by inserting before the period at the end the following: `, except that, if the amount appropriated to carry out this part for any fiscal year exceeds the amount required to provide to each institution an amount equal to the total amount received by such institution under subsections (a), (b), and (c) for the preceding fiscal year, then the amount of such excess appropriation shall first be applied to increase the minimum allotment under this subsection to $750,000'.

(e) Eligible Graduate or Professional Schools-

(1) GENERAL AUTHORITY- Section 326(a)(1) (20 U.S.C. 1063b(a)(1)) is amended--

(A) by inserting `(A)' after `subsection (e) that';

(B) by inserting before the period at the end the following: `, (B) 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, and (C) according to such an agency or association, is in good standing'.

(2) ELIGIBLE INSTITUTIONS- Section 326(e)(1) (20 U.S.C. 1063b(e)(1)) is amended--

(A) by striking `and' at the end of subparagraph (Q);

(B) by striking the period at the end of subparagraph (R) and inserting a semicolon; and

`(S) Alabama State University qualified graduate program;

`(T) Prairie View A & M University qualified graduate program;

`(U) Coppin State University qualified graduate program; and

`(V) Delaware State University qualified graduate program.'.

(3) CONFORMING AMENDMENT- Section 326(e)(3) (20 U.S.C. 1063b(e)(3)) is amended--

(A) by striking `1998' and inserting `2005'; and

(B) by striking `(Q) and (R)' and inserting `(S), (T), (U), and (V)'.

(f) Professional or Graduate Institutions- Section 326(f) (20 U.S.C. 1063b(f)) is amended--

(1) in paragraph (1)--

(A) by striking `$26,600,000' and inserting `$54,500,000'; 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 `$54,500,000, but not in excess of $58,500,000'; and

(B) by striking `subparagraphs (Q) and (R)' and inserting `subparagraphs (S), (T), (U), and (V)'; and

(3) in paragraph (3)--

(A) by striking `$28,600,000' and inserting `$58,500,000'; and

(B) by striking `(R)' and inserting `(V)'.

(g) Hold Harmless- Section 326(g) (20 U.S.C. 1063b(g)) is amended by striking `1998' each place it appears and inserting `2005'.

SEC. 304. TECHNICAL AMENDMENTS.

(a) Amendments- Title III is further amended--

(1) in section 311(c) (20 U.S.C. 1057(c))--

(A) by redesignating paragraphs (7) through (12) as paragraphs (8) through (13), respectively; and

(B) by inserting after paragraph (6) the following:

`(7) Education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents.';

(2) in section 312(b)(1)(A) (20 U.S.C. 1058(b)(1)(A)), by striking `subsection (c)' and inserting `subsection (d)';

(3) in section 312(b)(1)(F) (20 U.S.C. 1058(b)(1)(F)), by inserting `which is' before `located';

(4) in section 312(b)(1) (20 U.S.C. 1058(b)(1)), by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively, and by inserting after subparagraph (D) the following new subparagraph:

`(E) which provides a program that is not less than a 2-year educational program that is acceptable for full credit toward a bachelor's degree;';

(5) in section 316(c)(2) (20 U.S.C. 1059c(c)(2))--

(A) by redesignating subparagraphs (G) through (M) (as redesignated by section 301(b)(2) of this Act) as subparagraphs (H) through (N), respectively;

(B) by inserting after subparagraph (F) the following:

`(G) education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;'; and

(C) in subparagraph (N), as redesignated by subparagraph (A), by striking `subparagraphs (A) through (K)' and inserting `subparagraphs (A) through (M)';

(6) in section 317(c)(2) (20 U.S.C. 1059d(c)(2)), by inserting after subparagraph (I) (as added by section 302(a)(6) of this Act) the following:

`(J) education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents.';

(7) in section 323(a) (20 U.S.C. 1062(a))--

(A) by striking `section 360(a)(2)' and inserting `section 399(a)(2)';

(B) by redesignating paragraphs (7) through (12) as paragraphs (8) through (13), respectively; and

`(7) Education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents.';

(8) in section 324(d)(2) (20 U.S.C. 1063(d)(2)), by striking `section 360(a)(2)(A)' and inserting `section 399(a)(2)(A)';

(9) in section 326(e)(1) (20 U.S.C. 1063b(e)(1)), in the matter preceding subparagraph (A), by inserting a colon after `the following';

(10) in section 327(b) (20 U.S.C. 1063c(b)), by striking `initial';

(11) in section 342(5)(C) (20 U.S.C. 1066a(5)(C))--

(A) by inserting a comma after `equipment' the first place it appears; and

(B) by striking `technology,,' and inserting `technology,';

(12) in section 343(e) (20 U.S.C. 1066b(e)), by inserting after the subsection designation the following: `Sale of Qualified Bonds- ';

(13) in section 351(a) (20 U.S.C. 1067a(a)), by striking `of 1979';

(14) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by striking `subparagraph (E)' and inserting `subparagraph (D)'; and

(15) in section 396 (20 U.S.C. 1068e), by striking `section 360' and inserting `section 399'.

(b) Repeal- Section 1024 (20 U.S.C. 1135b-3), as transferred by section 301(a)(5) of the Higher Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1636), is repealed.

SEC. 305. TITLE III AUTHORIZATIONS.

Section 399(a) (20 U.S.C. 1068h(a)) is amended--

(1) by striking `1999' each place it appears and inserting `2006';

(2) by striking `4 succeeding fiscal years' each place it appears and inserting `5 succeeding fiscal years';

(3) in paragraph (1)--

(A) by striking `$10,000,000' in subparagraph (B) and inserting `$23,800,000'; and

(B) by striking `$5,000,000' in subparagraph (C) and inserting `$11,900,000';

(4) in paragraph (2)--

(A) by striking `$135,000,000' in subparagraph (A) and inserting `$241,000,000'; and

(B) by striking `$35,000,000' in subparagraph (B) and inserting `$59,000,000'; and

(5) in paragraph (4), by striking `$110,000' and inserting `$212,000'.

TITLE IV--STUDENT ASSISTANCE

PART A--GRANTS TO STUDENTS

SEC. 401. PELL GRANTS.

(a) Extension of Authority- Section 401(a) (20 U.S.C. 1070a(a)) is amended by striking `2004' and inserting `2012'.

(b) Direct Payment- Section 401(a) (20 U.S.C. 1070a(a)) is further amended--

(1) by striking paragraph (2); and

(2) by redesignating paragraph (3) as paragraph (2).

(c) Maximum Pell Grant Increase- Paragraph (2)(A) of section 401(b) 20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows:

`(2)(A) The amount of the Federal Pell Grant for a student eligible under this part shall be $6,000 for academic years 2006-2007 through 2012-2013, less an amount equal to the amount determined to be the expected family contribution with respect to that student for that year.'.

(d) Tuition Sensitivity- Section 401(b) is further amended--

(1) by striking paragraph (3); and

(2) by redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively.

(e) Multiple Grants- Paragraph (5) of section 401(b) (as redesignated by subsection (d)(2)) is amended to read as follows:

`(5) YEAR-ROUND PELL GRANTS-

`(A) IN GENERAL- The Secretary shall, for students enrolled full time in a baccalaureate or associate's degree program of study at an eligible institution, award such students two Pell grants during a single award year to permit such students to accelerate progress toward their degree objectives by enrolling in academic programs for 12 months rather than 9 months.

`(B) LIMITATION- The Secretary shall limit the awarding of additional Pell grants under this paragraph in a single award year to students attending--

`(i) baccalaureate degree granting institutions that have a graduation rate as reported by the Integrated Postsecondary Education Data System for the 4 preceding academic years of at least 30 percent; or

`(ii) two-year institutions that have a graduation rate as reported by the Integrated Postsecondary Education Data Systems, in at least one of the last 3 years for which data is available, that is above the average for the applicable year for the institution's type and control.

`(C) EVALUATION- The Secretary shall conduct an evaluation of the program under this paragraph and submit to the Congress an evaluation report no later than October 1, 2011.

`(D) REGULATIONS REQUIRED- The Secretary shall promulgate regulations implementing this paragraph.'.

(f) Ineligibility Based on Involuntary Civil Commitment for Sexual Offenses- Paragraph (7) of section 401(b) (as redesignated by subsection (d)(2)) is amended 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 sexual offense (as determined under regulations of the Secretary)'.

(g) Pell Grant Eligibility Duration- Section 401(c) (20 U.S.C. 1070a(c)) is amended--

(1) in paragraph (1)--

(A) by striking `The period' and inserting in lieu thereof `Subject to paragraph (5), the period'; and

(B) by striking the period at the end thereof and inserting `but shall be subject to the limitation described in paragraph (5).'; and

(2) by adding at the end the following new paragraph:

`(5) The period during which a student may receive Federal Pell Grants shall not exceed the equivalent of 18 semesters or 27 quarters in duration (as determined by the Secretary by regulation), without regard to whether the student is enrolled on a full-time basis during any portion of that period, and including any period of time for which the student received Federal Pell Grants prior to the date of enactment of the College Access and Opportunity Act of 2005.'.

(h) Eligibility Period- Section 401(c)(2) (20 U.S.C. 1070a(c)(2)) is amended by inserting `, for not more than one academic year,' after `which are determined by the institution' in the first sentence.

(i) Pell Grants Plus: Achievement Grants for State Scholars Program-

(1) AMENDMENT- Subpart 1 of part A of title IV is amended by inserting after section 401 (20 U.S.C. 1070a) the following new section:

`SEC. 401A. PELL GRANTS PLUS: ACHIEVEMENT GRANTS FOR STATE SCHOLARS.

`(a) Grants Authorized- From sums appropriated to carry out section 401, the Secretary shall establish a program to award Pell Grants Plus to students who--

`(1) have successfully completed a rigorous high school program of study established by a State or local educational agency in consultation with a State coalition assisted by the Center for State Scholars;

`(2) are enrolled full-time in the first academic year of undergraduate education, and have not been previously enrolled in a program of undergraduate education; and

`(3) are eligible to receive Federal Pell Grants for the year in which the grant is awarded.

`(b) Amount of Grants-

`(1) IN GENERAL- Except as provided in paragraph (2), the amount of the grant awarded under this section shall be $1,000.

`(2) ASSISTANCE NOT TO EXCEED COST OF ATTENDANCE- A grant awarded under this section to any student, in combination with the Federal Pell Grant assistance and other student financial assistance available to such student, may not exceed the student's cost of attendance.

`(c) Selection of Recipients-

`(1) PROCEDURES ESTABLISHED BY REGULATION- The Secretary shall establish by regulation procedures for the determination of eligibility of students for the grants awarded under this section. Such procedures shall include measures to ensure that eligibility is determined in a timely and accurate manner consistent with the requirements of section 482 and the submission of the financial aid form required by section 483.

`(2) REQUIRED INFORMATION- Each eligible student desiring an award under this section shall submit at such time and in such manner such information as the Secretary may reasonably require.

`(3) CONTINUATION OF GRANT REQUIREMENTS- In order for a student to continue to be eligible to receive an award under this section for the second year of undergraduate education, the eligible student must--

`(A) maintain eligibility to receive a Federal Pell Grant for that year;

`(B) obtain a grade point average of at least 3.0 (or the equivalent as determined under regulations prescribed by the Secretary) for the first year of undergraduate education; and

`(C) be enrolled full-time and fulfill the requirements for satisfactory progress described in section 484(c).

`(d) Evaluation, and Reports- The Secretary shall monitor the progress, retention, and completion rates of the students to whom awards are provided under this section. In doing so, the Secretary shall evaluate the impact of the Pell Grants Plus Program and report, not less than biennially, to the authorizing committees of the House of Representatives and the Senate.'.

(2) CONFORMING AMENDMENT- Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 1070a-31 through 1070a-35) is repealed.

SEC. 402. TRIO PROGRAMS.

(a) Duration of Grants-

(1) AMENDMENT- Section 402A(b)(2) (20 U.S.C. 1070a-11(b)(2)) is amended to read as follows:

`(2) DURATION- Grants or contracts awarded under this chapter shall be awarded for a period of 5 years, except that--

`(A) grants under section 402G shall be awarded for a period of 2 years; and

`(B) grants under section 402H shall be awarded for a period determined by the Secretary.'.

(2) TRANSITION TO SYNCHRONOUS GRANT PERIODS- Notwithstanding section 402A(b)(2) of the Higher Education Act of 1965 (as in effect both prior to and after the amendment made by paragraph (1) of this subsection), the Secretary of Education may continue an award made before the date of enactment of this Act under section 402B, 402C, 402D, 402E, or 402F of such Act as necessary to permit all the awards made under such a section to expire at the end of the same fiscal year, and thereafter to expire at the end of 5 years as provided in the amendment made by paragraph (1) of this subsection.

(b) Minimum Grants- Section 402A(b)(3) (20 U.S.C. 1070a-11(b)(3)) is amended to read as follows:

`(3) MINIMUM GRANTS- Unless the institution or agency requests a smaller amount, individual grants for programs authorized under this chapter shall be no less than $200,000, except that individual grants for programs authorized under section 402G shall be no less than $170,000.'.

(1) by striking `In making grants' and inserting `(A) Subject to subparagraph (B), in making grants'; and

(2) by adding at the end the following new subparagraph:

`(B) From the amount available under subsection (h) for a program under this chapter (other than a program under section 402G or 402H) for any fiscal year in which the Secretary conducts a competition for the award of grants or contracts under such program, the Secretary shall reserve 10 percent of such available amount for purposes of funding applications from novice applicants. If the Secretary determines that there are an insufficient number of qualified novice applicants to utilize the amount so reserved, the Secretary shall restore the unutilized remainder of the amount reserved for use by applicants qualifying under subparagraph (A).'.

(d) Application Status- Section 402A(c) (20 U.S.C. 1070a-11(c)) is amended by striking paragraph (7).

(e) Documentation of Status- Section 402A(e) (20 U.S.C. 1070a-11(e)) is amended by striking `(g)(2)' each place it appears in paragraphs (1) and (2) and inserting `(i)(4)'.

(f) Homeless and Unaccompanied Youth- Section 402A(e) is further amended by adding at the end the following new paragraph:

`(3) Notwithstanding this subsection and subsection (i)(4), individuals who are homeless or unaccompanied youth 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 of this chapter.'.

(g) Authorization of Appropriations- Section 402A(f) (20 U.S.C. 1070a-11(f)) is amended by striking `$700,000,000 for fiscal year 1999, and such sums as may be necessary for each of the 4 succeeding fiscal years' and inserting `$836,500,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years'.

(h) Definition- Section 402A(g) (20 U.S.C. 1070a-11(g)) is amended--

(1) in paragraph (3), by striking `by reason of such individual's age';

(2) by redesignating paragraphs (1) through (4) as paragraphs (3) through (6), respectively; and

(3) by inserting before paragraph (3), as redesignated, the following:

`(1) DIFFERENT CAMPUS- The term `different campus' means an institutional site that--

`(A) is geographically apart from the main campus of the institution;

`(B) is permanent in nature; and

`(C) offers courses in educational programs leading to a degree, certificate, or other recognized educational credential.

`(2) DIFFERENT POPULATION- The term `different population' means a group of individuals, with respect to whom an entity seeks to serve through an application for funding under this chapter, that--

`(A) is separate and distinct from any other population that the entity seeks to serve through an application for funding under this chapter; or

`(B) while sharing some of the same needs as another population that the entity seeks to serve through an application for funding under this chapter, has distinct needs for specialized services.'.

(i) Education and Counseling Services- Chapter 1 of subpart 2 of part A of title IV is further amended--

(1) in section 402B(b) (20 U.S.C. 1070a-12(b))--

(A) by redesignating paragraphs (3) through (10) as paragraphs (4) through (11), respectively;

(B) by inserting after paragraph (2) the following:

`(3) education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;'; and

(C) in paragraph (11), as redesignated by subparagraph (A), by striking `paragraphs (1) through (9)' and inserting `paragraphs (1) through (10)';

(2) in section 402C (20 U.S.C. 1070a-13)--

(A) in subsection (b)--

(i) by redesignating paragraphs (2) through (12) as paragraphs (3) through (13), respectively;

(ii) by inserting after paragraph (1) the following:

`(2) education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;';

(iii) in paragraph (12), as redesignated by clause (i), by inserting `, specifically in the fields of math and science' after `postsecondary education'; and

(iv) in paragraph (13), as redesignated by clause (i), by striking `paragraphs (1) through (11)' and inserting `paragraphs (1) through (12)'; and

(B) in subsection (e), by striking `subsection (b)(10)' and inserting `subsection (b)(11)';

(3) in section 402D(b) (20 U.S.C. 1070a-14(b))--

(A) by redesignating paragraphs (2) through (10) as paragraphs (3) through (11), respectively;

(B) by inserting after paragraph (1) the following:

`(2) education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;'; and

(C) in paragraph (11), as redesignated by subparagraph (A), by striking `paragraphs (1) through (9)' and inserting `paragraphs (1) through (10)';

(4) in section 402E(b) (20 U.S.C. 1070a-15(b))--

(A) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively; and

(B) by inserting after paragraph (6) the following:

`(7) education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;'; and

(5) in section 402F(b) (20 U.S.C. 1070a-16(b))--

(A) by redesignating paragraphs (4) through (10) as paragraphs (5) through (11), respectively;

(B) by inserting after paragraph (3) the following:

`(4) education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents;'; and

(C) in paragraph (11), as redesignated by subparagraph (A), by striking `paragraphs (1) through (9)' and inserting `paragraphs (1) through (10)'.

(j) Maximum Stipends- Section 402C(e) (20 U.S.C. 1070a-13(e)) is amended--

(1) by striking `$60' and inserting `$100'; and

(2) by striking `$40' and inserting `$60'.

(k) Student Support Services- Section 402D(d)(6) (20 U.S.C. 1070a-14(d)(6)) is amended--

(1) by striking `and' at the end of subparagraph (A);

(2) by striking the period at the end of subparagraph (B) and inserting `; and'; and

(3) by inserting after subparagraph (B) the following new subparagraph:

`(C) working with other entities that serve low-income working adults to increase access to and successful progress in postsecondary education by low-income working adults seeking their first postsecondary degree or certificate.'.

(l) Postbaccalaureate Achievement Maximum Stipends- Section 402E(e)(1) (20 U.S.C. 1070a-15(e)(1)) is amended by striking `$2,800' and inserting `$5,000'.

(m) Educational Opportunity Centers: Application Approval- Section 402F(c) (20 U.S.C. 1070a-16(c)) is amended--

(1) by striking `and' at the end of paragraph (2);

(2) by striking the period at the end of paragraph (3) and inserting `; and'; and

(3) by inserting after paragraph (3) the following new paragraph:

`(4) consider the extent to which the proposed project would provide services to low-income working adults in the region to be served, in order to increase access to postsecondary education by low-income working adults.'.

SEC. 403. TRIO REFORM.

(a) Performance Measures- Section 402A (20 U.S.C. 1070a-11) is amended--

(1) by redesignating subsections (c), (d), (e), (f), and (g) as subsections (d), (e), (g), (h), and (i), respectively; and

(2) by inserting after subsection (b) the following new subsection:

`(c) Performance Measures-

`(1) IN GENERAL- The Secretary shall establish expected program outcomes and procedures for measuring, annually and for longer periods, the quality and effectiveness of programs operated under this chapter, and the impact of the services provided through the programs to support the attainment of higher education for students from disadvantaged backgrounds, low-income individuals, and prospective first-generation college students.

`(2) USE OF MEASURES- The performance measures described in paragraph (1) shall be used to--

`(A) assess the impact of the specific services provided by recipients of grants or contracts under this chapter and, to the extent the Secretary finds appropriate, administrative and financial management practices of such programs;

`(B) identify strengths and weaknesses in the provision of services provided by grantees under this chapter;

`(C) identify project operations that may require training and technical assistance resources.

`(3) ADDITIONAL MEASURES- In addition to the performance measures in paragraph (1), each grant recipient may establish local performance measures.'.

(b) Selection- Subsection (d) of such section (as redesignated by subsection (a)(1) of this section) is amended--

(1) by redesignating paragraphs (2) through (6) as paragraphs (3) through (7), respectively; and

(2) by inserting after paragraph (1) the following new paragraph:

`(2) SELECTION-

`(A) IN GENERAL- In awarding grants from among qualified applicants, the Secretary shall consider the effectiveness of each applicant in providing services under this chapter, based on--

`(i) the plan of such applicant to deliver program services and achieve expected program outcomes established by the Secretary;

`(ii) the plan of such applicant to coordinate program services with other programs for disadvantaged students; and

`(iii) any prior experience of such applicant in achieving expected program outcomes under this chapter.

`(B) ADDITIONAL CRITERIA- The Secretary may establish additional selection criteria as necessary to identify the most qualified applicants.'.

(c) Prior Experience- Paragraph (3) of such subsection (d) (as amended by section 402(c) and redesignated by subsection (b)(1) of this section) is amended--

(1) by striking subparagraph (A) and inserting `(A) In making grants under this chapter, the Secretary shall use the measures described in subsection (c)(1) to evaluate each applicant's prior experience in achieving expected program outcomes under the particular program for which funds are sought.'; and

(2) by adding at the end the following new subparagraph:

`(C) The Secretary shall not give prior experience points to any current grantee that during the then most recent period for which funds were provided--

`(i) failed to meet one or more expected program outcomes based on the performance measures described in subsection (c); or

`(ii) expended funds for indirect costs in an amount that exceeded 8 percent of the total grant award.'.

(d) Order of Awards- Paragraph (4) of such subsection (d) (as redesignated by subsection (b)(1) of this section) is amended--

(1) in subparagraph (A)--

(A) by striking `under paragraph (4)' and inserting `under paragraph (5)'; and

(B) by stiking `with paragraph (2)' and inserting `with paragraph (3)'; and

(2) by amending subparagraph (B) to read as follows:

`(B) The Secretary shall not provide assistance to an entity if the Secretary has determined that such entity has involved the fraudulent use of public or private funds.'.

(e) Technical Assistance- Paragraph (3) of subsection (e) of such section (as redesignated by subsection (a)(1) of this section) is amended to read as follows:

`(3) TECHNICAL ASSISTANCE- The Secretary shall provide technical assistance to applicants for projects and programs authorized under this chapter. The Secretary shall give priority to serving programs and projects that serve geographic areas and eligible populations which have been underserved by the programs assisted under this chapter. Technical training activities shall include the provision of information on authorizing legislation, goals and objectives of the program, required activities, eligibility requirements, the application process and application deadlines, and assistance in the development of program proposals and the completion of program applications.'.

(f) Recordkeeping and Reporting- Section 402A is further amended by inserting after subsection (e) of such section (as redesignated by subsection (a)(1) of this section) the following new subsection:

`(f) Recordkeeping and Reporting-

`(1) IN GENERAL- The Secretary shall establish uniform reporting requirements and require each recipient of funds under this chapter to submit annually and in electronic form such information in such manner and form and at such time as the Secretary may require, except that reporting such information shall not reveal personally identifiable information about an individual student.

`(2) REPORT TO CONGRESS- At least once every 2-year period, the Secretary shall prepare and submit to the authorizing committees, a report on the services provided to students that shall include--

`(A) a statement for the then most recently concluded fiscal year specifying--

`(i) the amount of funds received by grantees to provide services under this chapter; and

`(ii) the amount of funds received by new grantees to provide services under this chapter;

`(B) a description of the specific services provided to students;

`(C) a summary of the overall success in achieving specific program outcomes or progress toward such outcomes;

`(D) a report of the number of students served by types of service received;

`(E) information summarizing the types of organizations that received funds under this chapter; and

`(F) a summary of the research and evaluation activities under section 402H, including--

`(i) a status report on ongoing activities; and

`(ii) results, conclusions, and recommendations of such activities available after the then most recent report.'.

(g) Increased Monitoring- Subsection (h) of such section (as redesignated by subsection (a)(1) of this section) is amended by striking everything after the first sentence and inserting the following: `Of the amount appropriated under this chapter, the Secretary may use no more than one half of 1 percent of such amount to support the administration of the Federal TRIO programs including to increase the level of oversight monitoring, to support impact studies, program assessments and reviews, and to provide technical assistance to prospective applicants and current grantees.'.

(h) Expected Program Outcome-

(1) Section 402B (20 U.S.C. 1070a-12) is amended by adding at the end the following new subsection:

`(d) Expected Program Outcome- For the purposes of assessing an applicant's past performance under section 402A(c)(1), and prior experience under section 402A(d)(3), the Secretary shall consider the college-going rate of the participants served by the program compared to that of other applicants eligible to receive consideration of prior experience.'.

(2) Section 402C (20 U.S.C. 1070a-12) is amended by adding at the end the following new subsection:

`(f) Expected Program Outcome- For the purposes of assessing an applicant's past performance under section 402A(c)(1), and prior experience under section 402A(d)(3), the Secretary shall consider the college-going rate of the participants served by the program compared to that of other applicants eligible to receive consideration of prior experience.'.

(3) Section 402D (20 U.S.C. 1070a-12) is amended by adding at the end the following new subsection:

`(e) Expected Program Outcome- For the purposes of assessing an applicant's past performance under section 402A(c)(1), and prior experience under section 402A(d)(3), the Secretary shall consider the college-going rate of the participants served by the program compared to that of other applicants eligible to receive consideration of prior experience.'.

(4) Section 402E (20 U.S.C. 1070a-12) is amended by striking subsection (f) and inserting the following:

(5) Section 402F (20 U.S.C. 1070a-12) is amended by adding at the end the following new subsection:

(i) Staff Development- Section 402G (20 U.S.C. 1070a-17) is amended to read as follows:

`SEC. 402G. STAFF DEVELOPMENT ACTIVITIES.

`(a) Secretary's Authority- For the purpose of improving the operation of the programs and projects authorized by this chapter, the Secretary is authorized to make grants to institutions of higher education and other public and private nonprofit institutions and organizations to provide training and technical assistance for staff and leadership personnel employed in, participating in, or preparing for employment in, such programs and projects.

`(b) Contents of Training Programs- Such training shall be provided to assist programs and projects in--

`(1) achieving the expected program outcomes stated under this chapter or additional outcomes identified by individual programs or projects;

`(2) addressing any identified program weaknesses in the overall development, conduct, or administration of a grant or contract;

`(3) improving the quality of services provided to eligible students; or

`(4) additional areas in need of program improvement as identified by the Secretary or as requested by grantees in order to enhance program operations and outcomes.

`(c) Consultation- Grants for the purposes of this section shall be made only after consultation with regional and State professional associations of persons having special knowledge with respect to the needs and problems of such programs and projects.'.

(j) Evaluations- Section 402H (20 U.S.C. 1070a-18) is amended to read as follows:

`SEC. 402H. EVALUATIONS.

`(a) Evaluations-

`(1) IN GENERAL- 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 one or more organizations to--

`(A) evaluate the effectiveness of the programs and projects assisted under this chapter; and

`(B) disseminate information on the impact of the programs in increasing the education level of participating students, as well as other appropriate measures.

`(2) ISSUES TO BE EVALUATED- The evaluations described in paragraph (1) shall measure the effectiveness of programs under this chapter in--

`(A) meeting the expected program outcomes stated under this chapter and all performance measures identified by the Secretary;

`(B) enhancing the access of low-income individuals and first-generation college students to postsecondary education;

`(C) preparing individuals and students for postsecondary education;

`(D) comparing the level of education completed by students who participate in the programs funded under this chapter with the level of education completed by students of similar backgrounds who do not participate in such programs;

`(E) comparing the retention rates, dropout rates, graduation rates, and college admission and completion rates of students who participate in the programs funded under this chapter with the rates of students of similar backgrounds who do not participate in such programs; and

`(F) such other issues as the Secretary considers appropriate for inclusion in the evaluation.

`(3) PROGRAM METHODS- Such evaluations shall also investigate the effectiveness of alternative and innovative methods within Federal TRIO programs of increasing access to, and retention of, students in postsecondary education.

`(b) Results- The Secretary shall submit to the authorizing committees--

`(1) an annual interim report on the progress and preliminary results of the evaluation of each program funded under this chapter no later than 2 years following the date of enactment of the College Access and Opportunity Act of 2005; and

`(2) a final report not later than 3 years following the date of enactment of such Act.

`(c) Public Availability- All reports and underlying data gathered pursuant to this section shall be made available to the public upon request, in a timely manner following submission of the applicable reports under subsection (b), except that any personally identifiable information on students participating in any TRIO program shall not be disclosed or made available to the public.'.

SEC. 404. GEARUP.

(a) Duration of Awards- Section 404A(b) (20 U.S.C. 1070a-21(b)) is amended--

(1) in paragraph (2)(B), by striking `Higher Education Amendments of 1998' and inserting `College Access and Opportunity Act of 2005'; and

(2) by adding at the end thereof the following new paragraph:

`(3) DURATION- An award made by the Secretary under this chapter to an eligible entity described in paragraph (1) or (2) of subsection (c) shall be for the period of 6 years.'.

(b) Continuing Eligibility- Section 404A (20 U.S.C. 1070a-21) is amended by adding at the end the following new subsection:

`(d) Continuing Eligibility- An eligible entity shall not cease to be an eligible entity upon the expiration of any grant under this chapter (including a continuation award).'.

(1) COHORT APPROACH- Section 404B(g)(1)(B) (20 U.S.C. 1070a-22(g)(1)(B)) is amended by inserting `and provide the option of continued services through the student's first year of attendance at an eligible institution of higher education' after `grade level'.

(2) EARLY INTERVENTION- Section 404D (20 U.S.C. 1070a-24) is amended--

(A) in subsection (b)(2)(A), by inserting `and students in the first year of attendance at an eligible institution of higher education' after `grade 12'; and

(B) in subsection (c), by inserting `, and may consider students in their first year of attendance at an eligible institution,' after `grade 12'.

(d) Coordination- Section 404C(a)(2) (20 U.S.C. 1070a-23(a)(2)) is amended--

(1) by striking `and' at the end of subparagraph (A);

(2) by redesignating subparagraph (B) as subparagraph (C); and

(3) by inserting after subparagraph (A) the following new subparagraph:

`(B) describe activities for coordinating, complementing, and enhancing services under this chapter provided by other eligible entities in the State; and'.

(e) Education and Counseling Services- Section 404D(b)(2)(A)(ii) (20 U.S.C. 1070a-24(b)(2)(A)(ii)) is amended by striking `and academic counseling' and inserting `academic counseling, and financial literacy and economic literacy education or counseling'.

(f) Homeless and Unaccompanied Youth- Section 404D is further amended by adding at the end the following new subsection:

`(e) Homeless and Unaccompanied Youth- Notwithstanding any other provision of this chapter, individuals who are homeless or unaccompanied youth as defined in section 725 of the McKinney-Vento Homeless Assistance Act shall be eligible to participate in programs under this section.'.

(g) Reauthorization- Section 404H (20 U.S.C. 1070a-28) is amended by striking `$200,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years' and inserting `$306,500,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years'.

SEC. 405. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

(a) Authorization of Appropriations- Section 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended by striking `$675,000,000 for fiscal year 1999 and such sums as may be necessary for the 4 succeeding fiscal years' and inserting `$779,000,000 for fiscal year 2006 and such sums as may be necessary for the 5 succeeding fiscal years'.

(b) Priority of Awards- Paragraph (2) of section 413C(c) (20 U.S.C. 1070b-2(c)(2)) is amended to read as follows:

`(2) In carrying out paragraph (1) of this subsection, each institution of higher education shall, in the agreement made under section 487, assure that the selection procedures--

`(A) will give a priority for supplemental grants under this subpart to students who receive Pell Grants and meet the requirements of section 484; and

`(B) will award no more than 10 percent of each institution's allocation received under section 413D to students who did not receive Federal Pell Grants in a prior year.'.

(1) AMENDMENT- Subsection (a) of section 413D (20 U.S.C. 1070b-3(a)) is amended to read as follows:

`(a) Allocation Based on Previous Allocation-

`(1) BASE GUARANTEE- From the amount appropriated pursuant to section 413A(b) for each fiscal year after fiscal year 2007, the Secretary shall, subject to paragraph (2), first allocate to each eligible institution an amount equal to the following percentage of the amount such institution received under subsection (a) of this section for fiscal year 2007 (as such subsection was in effect with respect to allocations for such fiscal year):

`(A) 80 percent for fiscal years 2008 and 2009;

`(B) 60 percent for fiscal years 2010 and 2011;

`(C) 40 percent for fiscal years 2012 and 2013;

`(D) 20 percent for fiscal years 2014 and 2015; and

`(E) 0 percent for fiscal year 2016 and any succeeding fiscal year.

`(2) RATABLE REDUCTIONS FOR INSUFFICIENT APPROPRIATIONS-

`(A) REDUCTION OF BASE GUARANTEE- If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under this subsection, then the amount of the allocation to each such institution shall be ratably reduced.

`(B) ADDITIONAL APPROPRIATIONS ALLOCATION- If additional amounts are appropriated for any such fiscal year, such reduced amounts shall be increased on the same basis as they were reduced (until the amount allocated equals the amount required to be allocated under this subsection).

`(3) ADDITIONAL ALLOCATIONS FOR CERTAIN INSTITUTIONS-

`(A) ALLOCATIONS PERMITTED- Notwithstanding any other provision of this section, the Secretary may allocate an amount equal to not more than 10 percent of the amount by which the amount appropriated in any fiscal year to carry out this subpart exceeds $700,000,000 among eligible institutions described in subparagraph (B).

`(B) ELIGIBLE INSTITUTIONS- An otherwise eligible institution may receive a portion of the allocation described in subparagraph (A) if--

`(i) not less than 10 percent of the students attending the institution receive Federal Pell Grants; and

`(ii)(I) in the case of an institution that offers programs of at least 4 years in duration, if its graduation rate for Federal Pell Grant recipients attending the institution and graduating within the period of time equal to normal duration of the longest undergraduate program offered by the institution, as measured from the first day of their enrollment, exceeds the median rate for the class of institution (as defined in section 131(f)(5)(C)); or

`(II) in the case of an institution that offers programs of at least 2, but less than 4, years in duration, if its rate for Federal Pell Grant recipients attending the institution and graduating or transferring to an institution that offers programs of at least 4 years in duration within the period of time equal to the normal duration of the program offered, as measured from the first day of their enrollment, exceeds the median rate for the class of institution (as defined in section 131(f)(5)(C)).'.

(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply with respect to any amounts appropriated under section 413A(b) of the Higher Education Act of 1965 (20 U.S.C. 1070b(b)) for fiscal year 2008 or any succeeding fiscal year.

(d) Books and Supplies- Section 413D(c)(3)(D) (20 U.S.C. 1070-3(c)(3)(D)) is amended by striking `$450' and inserting `$600'.

SEC. 406. LEAP.

Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding' and inserting `5 succeeding'.

SEC. 407. HEP/CAMP PROGRAM.

Section 418A (20 U.S.C. 1070d-2) is amended--

(1) in subsection (b)(1)(B)(i), by inserting `, or whose spouse' after `themselves';

(2) in subsection (b)(3)(B), by inserting `, including preparation for college entrance exams' after `program';

(3) in subsection (b)(8), by inserting `, including child care and transportation' after `supportive services';

(4) by striking `and' at the end of subsection (b)(7), by striking the period at the end of subsection (b)(8) and inserting `; and', and by adding at the end of subsection (b) the following new paragraph:

`(9) follow-up activity and reporting requirements, except that not more than 2 percent of the funds provided under this section may be used for such purposes.';

(5) in subsection (c)(1)(A), by inserting `, or whose spouse' after `themselves';

(6) in subsection (c)(1)(B), by striking clause (i) and inserting the following:

`(i) personal, academic, career, and economic education or personal finance counseling as an ongoing part of the program;';

(7) in subsection (c)(2)(B), by inserting `(including mentoring and guidance of such students)' after `services';

(8) in subsection (c)(2), by striking `and' at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting `; and', and by adding at the end of subsection (c)(2) the following new subparagraph:

`(C) for students in any program that does not award a bachelor's degree, encouraging the transfer to, and persistence in, such a program, and monitoring the rate of such transfer, persistence, and completion.';

(9) in subsection (e), by striking `section 402A(c)(1)' and inserting `section 402A(c)(2)'; and

(10) in subsection (h)--

(A) in paragraph (1), by striking `$15,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years' and inserting `$24,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years'; and

(B) in paragraph (2), by striking `$5,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years' and inserting `$16,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years'.

SEC. 408. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

Subpart 6 of part A of title IV is amended to read as follows:

`Subpart 6--Robert C. Byrd Honors Scholarship Program

`SEC. 419A. ROBERT C. BYRD MATHEMATICS AND SCIENCE HONORS SCHOLARSHIP PROGRAM.

`(a) Purpose- The purpose of this section is to award scholarships to students who are enrolled in studies leading to baccalaureate and advanced degrees in physical, life, or computer sciences, mathematics, and engineering.

`(b) Definitions- As used in this section--

`(1) the term `computer science' means the branch of knowledge or study of computers, including such fields of knowledge or study as computer hardware, computer software, computer engineering, information systems, and robotics;

`(2) the term `eligible student' means a student who--

`(A) is a citizen of the United States;

`(B) is selected by the managing agent to receive a scholarship;

`(C) is enrolled full-time in an institution of higher education, other than a United States service academy; and

`(D) has shown a commitment to and is pursuing a major in studies leading to a baccalaureate, masters, or doctoral degree (or a combination thereof) in physical, life, or computer sciences, mathematics, or engineering;

`(3) the term `engineering' means the science by which the properties of matter and the sources of energy in nature are made useful to humanity in structures, machines, and products, as in the construction of engines, bridges, buildings, mines, and chemical plants, including such fields of knowledge or study as aeronautical engineering, chemical engineering, civil engineering, electrical engineering, industrial engineering, materials engineering, manufacturing engineering, and mechanical engineering;

`(4) the term `life sciences' means the branch of knowledge or study of living things, including such fields of knowledge or study as biology, biochemistry, biophysics, microbiology, genetics, physiology, botany, zoology, ecology, and behavioral biology, except that the term does not encompass social psychology or the health professions;

`(5) the term `managing agent' means an entity to which an award is made under subsection (c) to manage a program of Mathematics and Science Honors Scholarships;

`(6) the term `mathematics' means the branch of knowledge or study of numbers and the systematic treatment of magnitude, relationships between figures and forms, and relations between quantities expressed symbolically, including such fields of knowledge or study as statistics, applied mathematics, and operations research; and

`(7) the term `physical sciences' means the branch of knowledge or study of the material universe, including such fields of knowledge or study as astronomy, atmospheric sciences, chemistry, earth sciences, ocean sciences, physics, and planetary sciences.

`(c) Award-

`(1)(A) From funds authorized under section 419D to carry out this section, the Secretary is authorized, through a grant or cooperative agreement, to make an award to a private, non-profit organization, other than an institution of higher education or system of institutions of higher education, to manage, through a public and private partnership, a program of Mathematics and Science Honors Scholarships under this section.

`(B) The award under subparagraph (A) shall be for a five-year period.

`(2)(A) One hundred percent of the funds awarded under paragraph (1)(A) for any fiscal year shall be obligated and expended solely on scholarships to eligible students.

`(B) No Federal funds shall be used to provide more than 50 percent of the cost of any scholarship to an eligible student.

`(C) The maximum scholarship award shall be the difference between an eligible student's cost of attendance minus any non-loan based aid such student receives.

`(3)(A) The secretary may establish--

`(i) eligibility criteria for applicants for managing agent, including criteria regarding financial and administrative capability; and

`(ii) operational standards for the managing agent, including management and performance requirements, such as audit, recordkeeping, record retention, and reporting procedures and requirements.

`(B) The Secretary, as necessary, may review and revise any criteria, standards, and rules established under this paragraph and, through the agreement with the managing agent, see that any revisions are implemented.

`(4) If the managing agent fails to meet the requirements of this section the Secretary may terminate the award to the managing agent.

`(5) The Secretary shall conduct outreach efforts to help raise awareness of the Mathematics and Science Honors Scholarships.

`(d) Duties of the Managing Agent- The managing agent shall--

`(1) develop criteria to award Mathematics and Science Honors Scholarships based on established measurements available to secondary students who wish to pursue degrees in physical, life, or computer sciences, mathematics, and engineering;

`(2) establish a Mathematics and Science Honors Scholarship Fund in a separate, named account that clearly discloses the amount of Federal and non-Federal funds deposited in the account and used for scholarships under this section;

`(3) solicit funds for scholarships and for the administration of the program from non-Federal sources;

`(4) solicit applicants for scholarships;

`(5) from the amounts in the Fund, award scholarships to eligible students and transfer such funds to the institutions of higher education that they attend; and

`(6) annually submit to the Secretary a financial audit and a report on the progress of the program, and such other documents as the Secretary may require to determine the effective management of the program.

`(e) Applications-

`(1) Any eligible entity that desires to be the managing agent under this section shall submit an application to the Secretary, in such form and containing such information, as the Secretary may require.

`(2) Each application shall include a description of--

`(A) how the applicant meets or will meet requirements established under subsections (c)(3)(A) and (d);

`(B) how the applicant will solicit funds for scholarships and for the administration of the program from non-Federal sources;

`(C) how the applicant will provide nationwide outreach to inform students about the program and to encourage students to pursue degrees in physical, life, or computer sciences, mathematics, and engineering;

`(D) how the applicant will solicit applications for scholarships, including how the applicant will balance efforts in urban and rural areas;

`(E) the selection criteria based on established measurements available to secondary students the applicant will use to award scholarships and to renew those awards;

`(F) how the applicant will inform the institution of higher education chosen by the recipient of the name and scholarship amount of the recipient;

`(G) what procedures and assurances the applicant and the institution of higher education that the recipient attends will use to verify student eligibility, attendance, degree progress, and academic performance and to deliver and account for payments to such institution;

`(H) the management (including audit and accounting) procedures the applicant will use for the program;

`(I) the human, financial, and other resources that the applicant will need and use to manage the program;

`(J) how the applicant will evaluate the program and report to the Secretary annually; and

`(K) a description of how the entity will coordinate with, complement, and build on similar public and private mathematics and science programs.

`(f) Scholarship Recipients-

`(1) A student receiving a scholarship under this section shall be known as a `Byrd Mathematics and Science Honors Scholar'.

`(2) Any student desiring to receive a scholarship under this section shall submit an application to the managing agent in such form, and containing such information, as the managing agent may require.

`(3) Any student that receives a scholarship under this section shall enter into an agreement with the managing agent to complete 5 consecutive years of service to begin no later than 12 months following completion of the final degree in a position related to physical, life, or computer sciences, mathematics, or engineering as defined under this section.

`(4) If any student that receives a scholarship under this section fails to earn at least a baccalaureate degree in physical, life, or computer sciences, mathematics, or engineering as defined under this section, the student shall repay to the managing agent the amount of any financial assistance paid to such student.

`(5) If any student that receives a scholarship under this section fails to meet the requirements of paragraph (3), the student shall repay to the managing agent the amount of any financial assistance paid to such student.

`(6)(A) Scholarships shall be awarded for only one academic year of study at a time.

`(B)(i) A scholarship shall be renewable on an annual basis for the established length of the academic program if the student awarded the scholarship remains eligible.

`(ii) The managing agent may condition renewal of a scholarship on measures of academic progress and achievement, with the approval of the Secretary.

`(C)(i) If a student fails to either remain eligible or meet established measures of academic progress and achievement, the managing agent shall instruct the student's institution of higher education to suspend payment of the student's scholarship.

`(ii) A suspension of payment shall remain in effect until the student is able to demonstrate to the satisfaction of the managing agent that he or she is again eligible and meets the established measures of academic progress and achievement.

`(iii) A student's eligibility for a scholarship shall be terminated if a suspension period exceeds 12 months.

`(D)(i)(I) A student awarded a scholarship may, in a manner and under the terms established by, and with the approval of, the managing agent, postpone or interrupt his or her enrollment at an institution of higher education for up to 12 months.

`(II) Such a postponement or interruption shall not be considered a suspension for purposes of subparagraph (C).

`(ii) Neither a student nor the student's institution of higher education shall receive the student's scholarship payments during the period of postponement or interruption, but such payments shall resume upon enrollment or reenrollment.

`(iii) In exceptional circumstances, such as serious injury or illness or the necessity to care for family members, the student's postponement or interruption may, upon notification and approval of the managing agent, be extended beyond the 12 month period described in clause (i)(I).

`(g) Responsibilities of Institution of Higher Education-

`(1) The managing agent shall require any institution of higher education that enrolls a student who receives a scholarship under this section to annually provide an assurance, prior to making any payment, that the student--

`(A) is eligible in accordance with subsection (b)(2); and

`(B) has provided the institution with a written commitment to attend, or is attending, classes and is satisfactorily meeting the institution's academic criteria for enrollment in its program of study.

`(2)(A) The managing agent shall provide the institution of higher education with payments from the Fund for selected recipients in at least two installments.

`(B) An institution of higher education shall return prorated amounts of any scholarship payment to the managing agent, who shall deposit it in to the Fund, if a recipient declines a scholarship, does not attend courses, transfers to another institution of higher education, or becomes ineligible for a scholarship.

`SEC. 419B. MATHEMATICS AND SCIENCE INCENTIVE PROGRAM.

`(a) Program-

`(1) IN GENERAL- The Secretary is authorized to carry out a program of assuming the obligation to pay, pursuant to the provisions of this section, the interest on a loan made, insured, or guaranteed under part B or D of this title.

`(2) ELIGIBILITY- The Secretary may assume interest payments under paragraph (1) only for a borrower who--

`(A) has submitted an application in compliance with subsection (d);

`(B) obtained one or more loans described in paragraph (1) as an undergraduate student;

`(C) is a new borrower (within the meaning of section 103(7) of this Act) on or after the date of enactment of the College Access and Opportunity Act of 2005;

`(D) is a highly qualified teacher of science, technology, engineering or mathematics at an elementary or secondary school in a high need local educational agency, or is a mathematics, science, or engineering professional; and

`(E) enters into an agreement with the Secretary to complete 5 consecutive years of service in a position described in subparagraph (D), starting on the date of the agreement.

`(3) PRIOR INTEREST LIMITATIONS- The Secretary shall not make any payments for interest that--

`(A) accrues prior to the beginning of the repayment period on a loan in the case of a loan made under section 428H or a Federal Direct Unsubsidized Stafford Loan; or

`(B) has accrued prior to the signing of an agreement under paragraph (2)(E).

`(4) INITIAL SELECTION- In selecting participants for the program under this section, the Secretary--

`(A) shall choose among eligible applicants on the basis of--

`(i) the national security, homeland security, and economic security needs of the United States, as determined by the Secretary, in consultation with other Federal agencies, including the Departments of Labor, Defense, Homeland Security, Commerce, and Energy, the Central Intelligence Agency, and the National Science Foundation; and

`(ii) the academic record or job performance of the applicant; and

`(B) may choose among eligible applicants on the basis of--

`(i) the likelihood of the applicant to complete the 5-year service obligation;

`(ii) the likelihood of the applicant to remain in science, mathematics, or engineering after the completion of the service requirement; or

`(iii) other relevant criteria determined by the Secretary.

`(5) AVAILABILITY SUBJECT TO APPROPRIATIONS- Loan interest payments under this section shall be subject to the availability of appropriations. If the amount appropriated for any fiscal year is not sufficient to provide interest payments on behalf of all qualified applicants, the Secretary shall give priority to those individuals on whose behalf interest payments were made during the preceding fiscal year.

`(6) REGULATIONS- The Secretary is authorized to prescribe such regulations as may be necessary to carry out the provisions of this section.

`(b) Duration and Amount of Interest Payments- The period during which the Secretary shall pay interest on behalf of a student borrower who is selected under subsection (a) is the period that begins on the effective date of the agreement under subsection (a)(2)(E), continues after successful completion of the service obligation, and ends on the earlier of--

`(1) the completion of the repayment period of the loan;

`(2) payment by the Secretary of a total of $5,000 on behalf of the borrower;

`(3) if the borrower ceases to fulfill the service obligation under such agreement prior to the end of the 5-year period, as soon as the borrower is determined to have ceased to fulfill such obligation in accordance with regulations of the Secretary; or

`(4) 6 months after the end of any calendar year in which the borrower's gross income equals or exceeds 4 times the national per capita disposable personal income (current dollars) for such calendar year, as determined on the basis of the National Income and Product Accounts Tables of the Bureau of Economic Analysis of the Department of Commerce, as determined in accordance with regulations prescribed by the Secretary.

`(c) Repayment to Eligible Lenders- Subject to the regulations prescribed by the Secretary by regulation under subsection (a)(6), the Secretary shall pay to each eligible lender or holder for each payment period the amount of the interest that accrues on a loan of a student borrower who is selected under subsection (a).

`(d) Application for Repayment-

`(1) IN GENERAL- Each eligible individual desiring loan interest payment under this section shall submit a complete and accurate application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

`(2) FAILURE TO COMPLETE SERVICE AGREEMENT- Such application shall contain an agreement by the individual that, if the individual fails to complete the 5 consecutive years of service required by subsection (a)(2)(E), the individual agrees to repay the Secretary the amount of any interest paid by the Secretary on behalf of the individual.

`(e) Treatment of Consolidation Loans- A consolidation loan made under section 428C of this Act, or a Federal Direct Consolidation Loan made under part D of title IV of this Act, may be a qualified loan for the purpose of this section only to the extent that such loan amount was used by a borrower who otherwise meets the requirements of this section to repay--

`(1) a loan made under section 428 or 428H of this Act; or

`(2) a Federal Direct Stafford Loan, or a Federal Direct Unsubsidized Stafford Loan, made under part D of title IV of this Act.

`(f) Prevention of Double Benefits- No borrower may, for the same service, receive a benefit under both this section and--

`(1) any loan forgiveness program under title IV of this Act; or

`(2) subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.).

`(g) Definitions- As used in this section--

`(1) the term `high need local educational agency' has the same meaning given such term in section 201(b)(4); and

`(2) the term `mathematics, science, or engineering professional' means a person who--

`(A) holds a baccalaureate, masters, or doctoral degree (or a combination thereof) in science, mathematics, or engineering; and

`(B) works in a field the Secretary determines is closely related to that degree, which shall include working as a professor at a two- or four-year institution of higher education.

`SEC. 419C. MATHEMATICS AND SCIENCE EDUCATION COORDINATING COUNCIL GRANTS.

`(a) Purposes- The purposes of this section include--

`(1) supporting programs that encourage students to enroll in and successfully complete baccalaureate and advanced degrees in science, technology, engineering, and mathematics;

`(2) achieving the common objective of organizing, leading, and implementing State-based reform agendas that support the continuing improvement of mathematics and science education; and

`(3) improving collaboration in a State among the State educational agency, 2-year and 4-year institutions of higher education, and the business community through the development or improvement of a coordinating council.

`(b) Definitions- For the purposes of this section:

`(1) the term `eligible State' means--

`(A) the Governor of a State; or

`(B) in the case of a State for which the constitution or laws of the State designate an individual, entity, or agency in the State, other than the Governor, to be responsible for coordination among segments of the State's educational systems, such individual, entity, or agency.

`(2) the term `mathematics and science education coordinating council' means an organization that is charged by a State with coordinating mathematics and science education in the State. Such a council shall be composed of education, business, and community leaders working together to increase student participation and academic achievement in mathematics and science.

`(c) State Grants- From amounts made available under section 419D for this section, the Secretary is authorized to use not more than $5,000,000 to award grants on a competitive basis to eligible States for the purpose of carrying out activities described in subsection (d).

`(d) Uses of Funds- An eligible State that receives a grant under this section is authorized to use grant funds to carry out one or more of the following activities:

`(1) In a State in which a mathematics and science education coordinating council does not exist, planning and establishing such a council.

`(2) In a State in which such a council exists, reforming or expanding the activities of the council, including implementing State-based reform agendas that support the continuing improvement of mathematics and science education, and support services that lead to better teacher recruitment and training, increased student academic achievement, and increased student enrollment and degree attainment in science, technology, engineering, and mathematics.

`(3) Coordinating with activities under part B of title II of the Elementary and Secondary Education Act of 1965 and with title II of this Act, especially as it pertains to the recruitment and preparation of highly qualified mathematics and science teachers.

`(e) Application- To be eligible to receive a grant under this section, an eligible State shall submit an application to the Secretary that--

`(1) describes the activities the State will carry out with the funds;

`(2) contains a plan for continuing such activities once Federal funding ceases; and

`(3) contains such other information and assurances as the Secretary may require.

`(f) Consultation- The Governor of a State, or the individual, entity, or agency in the State described in subsection (b)(1)(B), shall consult with the State board of education, State educational agency, and the State agency for higher education, as appropriate, with respect to the activities assisted under this section. In the case of an individual, entity, or agency described in subsection (b)(1)(B), such consultation shall also include the Governor.

`(g) Construction- Nothing in this section shall be construed to negate or supersede the legal authority under State law of any State agency, State entity, or State public official over programs that are under the jurisdiction of the agency, entity, or official.

`(h) Administrative Provisions-

`(1) IN GENERAL-

`(A) Grants awarded under this section shall be awarded for a period not to exceed 5 years.

`(B) A grantee may receive a grant under this part only once.

`(C) Payments of grant funds under this section shall be annual.

`(2) SECRETARIAL SELECTIONS- The Secretary shall determine which applications receive funds under this section, and the amount of the grant. In determining grant amounts, the Secretary shall take into account the total amount of funds available for all grants under this section and the nature of each grant proposal, including whether funds are being sought to assist in the creation of a new State mathematics and science education coordinating council or to extend the work of an existing council. The Secretary shall also take into account the equitable geographic distribution of grants throughout the United States.

`(3) MATCHING REQUIREMENT- Each eligible State receiving a grant under this section shall provide, from non-Federal sources, an amount equal to 50 percent of the amount of the grant (in cash or in kind) to carry out the activities supported by the grant.

`(i) Accountability and Evaluation-

`(1) STATE GRANT ACCOUNTABILITY REPORT- An eligible State that receives a grant under this section shall submit an annual accountability report to the Secretary. Such report shall include a description of the degree to which the eligible State, in using grant funds, has made substantial progress in meeting its objectives.

`(2) EVALUATION AND DISSEMINATION- The Secretary shall evaluate the activities funded under this section and report the Secretary's findings regarding such activities to the authorizing committees. The Secretary shall broadly disseminate successful practices developed by eligible States under this section, and shall broadly disseminate information regarding such practices that were found to be ineffective.

`(3) REVOCATION- If the Secretary determines that an eligible State is not making substantial progress in meeting the purposes, objectives, and measures, as appropriate, required under this section by the end of the second year of a grant, then the grant payment shall not be made for the third year and subsequent years of the grant.

`SEC. 419D. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated $41,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years to carry out this subpart.'.

SEC. 409. CHILD CARE ACCESS.

Section 419N(g) (20 U.S.C. 1070e(g)) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding' and inserting `5 succeeding'.

SEC. 410. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

(a) Repeal- Subpart 8 of part A of title IV (20 U.S.C. 1070f--1070f-6) is repealed.

(b) Conforming Amendment- Section 400(b) (20 U.S.C. 1070(b)) is amended by striking `through 8' and inserting `through 7'.

PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

SEC. 421. REAUTHORIZATION OF FEDERAL FAMILY EDUCATION LOAN PROGRAM.

(a) Authorization of Appropriations- Section 421(b)(5) (20 U.S.C. 1071(b)(5)) is amended by striking `an administrative cost allowance' and inserting `a loan processing and issuance fee'.

(b) Extension of Authority-

(1) FEDERAL INSURANCE LIMITATIONS- Section 424(a) (20 U.S.C. 1074(a)) is amended--

(A) by striking `2004' and inserting `2012'; and

(B) by striking `2008' and inserting `2016'.

(2) GUARANTEED LOANS- Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is amended--

(A) by striking `2004' and inserting `2012'; and

(B) by striking `2008' and inserting `2016'.

(3) CONSOLIDATION LOANS- Section 428C(e) (20 U.S.C. 1078-3(e)) is amended by striking `2004' and inserting `2012'.

SEC. 422. LOAN LIMITS.

(a) Federal Insurance Limits- Section 425(a)(1)(A) (20 U.S.C. 1075(a)(1)(A)) is amended--

(1) in clause (i)(I), by striking `$2,625' and inserting `$3,500'; and

(2) in clause (ii)(I), by striking `$3,500' and inserting `$4,500'.

(b) Guarantee Limits- Section 428(b)(1)(A) (20 U.S.C. 1078(b)(1)(A)) is amended--

(1) in clause (i)(I), by striking `$2,625' and inserting `$3,500'; and

(2) in clause (ii)(I), by striking `$3,500' and inserting `$4,500'.

(c) Counting of Consolidation Loans Against Limits- Section 428C(a)(3)(B) (20 U.S.C. 1078-3(a)(3)(B)) is amended by adding at the end the following new clause:

`(ii) Loans made under this section shall, to the extent used to pay off the outstanding principal balance on loans made under this title, excluding capitalized interest, be counted against the applicable limitations on aggregate indebtedness contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, and 464(a)(2)(B).'.

(d) Effective Date- The amendments made by this section shall apply with respect to any loan made, insured, or guaranteed under part B or part D of title IV of the Higher Education Act of 1965 for which the first disbursement of principal is made on or after July 1, 2007.

SEC. 423. INTEREST RATES AND SPECIAL ALLOWANCES.

(a) FFEL Interest Rates- Section 427A (20 U.S.C. 1077a(k)) is amended--

(1) in subsection (k)--

(A) by striking `, and Before July 1, 2006' in the heading of such subsection; and

(B) by striking `, and before July 1, 2006,' each place it appears other than paragraph (4);

(b) Direct Loan Interest Rates- Section 455(b) (20 U.S.C. 1087e(b)) is amended--

(1) in paragraph (6)--

(A) by striking `, AND BEFORE JULY 1, 2006' in the heading of such paragraph; and

(B) by striking `, and before July 1, 2006,' each place it appears other than subparagraph (D);

(2) by striking paragraph (7); and

(3) by redesignating paragraphs (8) and (9) as paragraphs (7) and (8), respectively.

(1) FFEL LOANS- Section 427A(k) (20 U.S.C. 1077a(k)) is further amended--

(A) in the heading of paragraph (4), by inserting `BEFORE JULY 1, 2006' after `LOANS';

(B) by redesignating paragraph (5) as paragraph (6); and

`(5) CONSOLIDATION LOANS ON OR AFTER JULY 1, 2006-

`(A) BORROWER ELECTION- With respect to any consolidation loan under section 428C for which the application is received by an eligible lender on or after July 1, 2006, the applicable rate of interest shall, at the election of the borrower at the time of application for the loan, be either at the rate determined under subparagraph (B) or the rate determined under subparagraph (C).

`(B) VARIABLE RATE- Except as provided in subparagraph (D), the rate determined under this subparagraph shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and, for such 12-month period, not be more than--

`(i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus

`(ii) 2.3 percent,

except that such rate shall not exceed 8.25 percent.

`(C) FIXED RATE- Except as provided in subparagraph (D), the rate determined under this subparagraph shall be determined for the duration of the term of the loan on the July 1 that is or precedes the date on which the application is received by an eligible lender, and shall be, for such duration, not more than--

`(i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to the June 1 immediately preceding such July 1; plus

`(ii) 3.3 percent,

except that such rate shall not exceed 8.25 percent.

`(D) CONSOLIDATION OF PLUS LOANS- In the case of any such consolidation loan that is used to repay loans each of which was made under section 428B or was a Federal Direct PLUS Loan (or both), the rates determined under clauses (B) and (C) shall be determined--

`(i) by substituting `3.1 percent' for `2.3 percent';

`(ii) by substituting `4.1 percent' for `3.3 percent'; and

`(iii) by substituting `9.0 percent' for `8.25 percent'.'.

(2) DIRECT LOANS- Section 455(b)(6) (20 U.S.C. 1087e(b)(6)) is further amended--

(A) in the heading of subparagraph (D), by inserting `BEFORE JULY 1, 2006' after `LOANS'

(B) by redesignating subparagraph (E) as subparagraph (F); and

`(E) CONSOLIDATION LOANS ON OR AFTER JULY 1, 2006-

`(i) BORROWER ELECTION- Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct Consolidation Loan for which the application is received by an eligible lender on or after July 1, 2006, the applicable rate of interest shall, at the election of the borrower at the time of application for the loan, be either at the rate determined under clause (ii) or the rate determined under clause (iii).

`(ii) VARIABLE RATE- Except as provided in clause (iv), the rate determined under this clause shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and, for such 12-month period, be equal to--

`(I) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus

`(II) 2.3 percent,

except that such rate shall not exceed 8.25 percent.

`(iii) FIXED RATE- Except as provided in clause (iv), the rate determined under this clause shall be determined for the duration of the term of the loan on the July 1 that is or precedes the date on which the application is received by an eligible lender, and shall be, for such duration, equal to--

`(I) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to the June 1 immediately preceding such July 1; plus

`(II) 3.3 percent,

except that such rate shall not exceed 8.25 percent.

`(iv) CONSOLIDATION OF PLUS LOANS- In the case of any such Federal Direct Consolidation Loan that is used to repay loans each of which was made under section 428B or was a Federal Direct PLUS Loan (or both), the rates determined under clauses (ii) and (iii) shall be determined--

`(I) by substituting `3.1 percent' for `2.3 percent';

`(II) by substituting `4.1 percent' for `3.3 percent'; and

`(III) by substituting `9.0 percent' for `8.25 percent'.'.

(e) Conforming Amendments for Special Allowances-

(1) AMENDMENT- Subparagraph (I) of section 438(b)(2) (20 U.S.C. 1087-1(b)(2)) is amended--

(A) by striking clause (ii) and inserting the following:

`(ii) IN SCHOOL AND GRACE PERIOD- In the case of any loan for which the first disbursement is made on or after January 1, 2000, and for which the applicable interest rate is described in section 427A(k)(2), clause (i)(III) of this subparagraph shall be applied by substituting `1.74 percent' for `2.34 percent'.';

(B) in clause (iii)--

(ii) by striking `, subject to clause (v) of this subparagraph';

(ii) by striking `, subject to clause (vi) of this subparagraph'; and

(D) by striking clauses (v), (vi), and (vii) and inserting the following:

`(v) RECAPTURE OF EXCESS INTEREST-

`(I) EXCESS CREDITED- With respect to a loan on which the applicable interest rate is determined under section 427A(k) and for which the first disbursement of principal is made on or after July 1, 2006, if the applicable interest rate for any 3-month period exceeds the special allowance support level applicable to such loan under this subparagraph for such period, then an adjustment shall be made by calculating the excess interest in the amount computed under subclause (II) of this clause, and by crediting the excess interest to the Government not less often than annually.

`(II) CALCULATION OF EXCESS- The amount of any adjustment of interest on a loan to be made under this subsection for any quarter shall be equal to--

`(aa) the applicable interest rate minus the special allowance support level determined under this subparagraph; multiplied by

`(bb) the average daily principal balance of the loan (not including unearned interest added to principal) during such calendar quarter; divided by

`(cc) four.

`(III) SPECIAL ALLOWANCE SUPPORT LEVEL- For purposes of this clause, the term `special allowance support level' means, for any loan, a number expressed as a percentage equal to the sum of the rates determined under subclauses (I) and (III) of clause (i), and applying any substitution rules applicable to such loan under clauses (ii), (iii), and (iv) in determining such sum.'.

(2) EFFECTIVE DATE- The amendments made by this subsection shall not apply with respect to any special allowance payment made under section 438 of the Higher Education Act of 1965 (20 U.S.C 1087-1) before July 1, 2006.

SEC. 424. ADDITIONAL LOAN TERMS AND CONDITIONS.

(a) Federal Default Fees-

(1) IN GENERAL- Subparagraph (H) of section 428(b)(1) (20 U.S.C. 1078(b)(1)(H)) is amended to read as follows:

`(H) provides--

`(i) for loans for which the first disbursement of principal is made before July, 1, 2006, for the collection of a single insurance premium equal to not more than 1.0 percent of the principal amount of the loan, by deduction proportionately from each installment payment of the proceeds of the loan to the borrower, and insures that the proceeds of the premium will not be used for incentive payments to lenders; or

`(ii) for loans for which the first disbursement of principal is made on or after July 1, 2006, for the collection and deposit into the Federal Student Loan Reserve Fund under section 422A of a Federal default fee of 1.0 percent of the principal amount of such loan, which shall be deducted proportionately from each installment payment of the proceeds of the loan to the borrower prior to payment to the borrower, and insures that the proceeds of the Federal default fee will not be used for incentive payments to lenders;'.

(2) UNSUBSIDIZED LOANS- Section 428H(h) (20 U.S.C. 1078-8(h)) is amended by adding at the end the following new sentence: `In lieu of the insurance premium authorized under the preceding sentence, and effective for loans for which the first disbursement of principal is made on or after July 1, 2006, each State or nonprofit private institution or organization having an agreement with the Secretary under section 428(b)(1) shall collect and deposit into the Federal Student Loan Reserve Fund under section 422A a Federal default fee of 1.0 percent of the principal amount of the loan, obtained by deduction proportionately from each installment payment of the proceeds of the loan to the borrower.'.

(3) VOLUNTARY FLEXIBLE AGREEMENTS- Section 428A(a)(1) (20 U.S.C. 1078-1(a)(1)) is amended--

(A) by striking `or' at the end of subparagraph (A);

(B) by striking the period at the end of subparagraph (B) and inserting `; or'; and

`(C) the Federal default fee required by section 428(b)(1)(H) and the second sentence of section 428H(h).'.

(b) Disbursement- Section 428(b)(1)(N) (20 U.S.C. 1078(b)(1)(N)(ii)) is amended--

(1) in clause (i), by inserting `(including an eligible foreign institution, except as provided in clause (ii))' after `institution'; and

(2) in clause (ii), by striking `or at an eligible foreign institution'.

(1) FFEL LOANS- Section 428(b)(9)(A) (20 U.S.C. 1078(b)(9)(A)) is amended--

(A) by inserting before the semicolon at the end of clause (ii) the following: `, and the Secretary may not restrict the proportions or ratios by which such payments may be graduated with the informed agreement of the borrower';

(B) by striking `and' at the end of clause (iii);

(D) by inserting after clause (iii) the following new clause:

`(iv) a delayed repayment plan under which the borrower makes scheduled payments for not more than 2 years that are annually not less than the amount of interest due or $600, whichever is greater, and then makes payments in accordance with clause (i), (ii), or (iii); and'.

(2) DIRECT LOANS- Section 455(d)(1) (20 U.S.C. 1087e(d)(1)) is amended--

(A) by redesignating subparagraph (D) as subparagraph (E); and

(B) by striking subparagraphs (A), (B), and (C) and inserting the following:

`(A) a standard repayment plan, consistent with subsection (a)(1) of this section and with section 428(b)(9)(A)(i);

`(B) a graduated repayment plan, consistent with section 428(b)(9)(A)(ii);

`(C) an extended repayment plan, consistent with section 428(b)(9)(A)(v), except that the borrower shall annually repay a minimum amount determined by the Secretary in accordance with section 428(b)(1)(L);

`(D) a delayed repayment plan under which the borrower makes scheduled payments for not more than 2 years that are annually not less than the amount of interest due or $600, whichever is greater, and then makes payments in accordance with subparagraph (A), (B), or (C); and'.

(d) Origination Fees-

(1) FFEL PROGRAM- Paragraph (2) of section 438(c) (20 U.S.C. 1087-1(c)) is amended--

(A) by striking the designation and heading of such paragraph and inserting the following:

`(2) AMOUNT OF ORIGINATION FEES-

`(A) IN GENERAL- '; and

(B) by adding at the end the following new subparagraph:

`(B) SUBSEQUENT REDUCTIONS- Subparagraph (A) shall be applied to loans made under this part (other than loans made under sections 428C and 439(o))--

`(i) by substituting `2.0 percent' for `3.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2006, and before July 1, 2007;

`(ii) by substituting `1.5 percent' for `3.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2007, and before July 1, 2008;

`(iii) by substituting `1.0 percent' for `3.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2008, and before July 1, 2009;

`(iv) by substituting `0.5 percent' for `3.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2009, and before July 1, 2010; and

`(v) by substituting `0.0 percent' for `3.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2010.'.

(2) DIRECT LOAN PROGRAM- Subsection (c) of section 455 (20 U.S.C. 1087e(c)) is amended to read as follows:

`(c) Loan Fee-

`(1) IN GENERAL- The Secretary shall charge the borrower of a loan made under this part an origination fee of 4.0 percent of the principal amount of loan.

`(2) SUBSEQUENT REDUCTION- Paragraph (1) shall be applied to loans made under this part, other than consolidation loans and PLUS loans--

`(A) by substituting `not more or less than 3.0 percent' for `4.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2006, and before July 1, 2007;

`(B) by substituting `not more or less than 2.5 percent' for `4.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2007, and before July 1, 2008;

`(C) by substituting `not more or less than 2.0 percent' for `4.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2008, and before July 1, 2009;

`(D) by substituting `not more or less than 1.5 percent' for `4.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2009, and before July 1, 2010; and

`(E) by substituting `not more or less than 1.0 percent' for `4.0 percent' with respect to loans for which the first disbursement of principal is made on or after July 1, 2010.

`(3) WAIVERS AND REPAYMENT INCENTIVES PROHIBITED- Beginning with loans made on or after July 1, 2006, the Secretary is prohibited--

`(A) from waiving any amount of the loan fee prescribed under this section as part of a repayment incentive in section 455(b)(7); and

`(B) from providing any repayment incentive before the borrower enters repayment.'.

(e) Fixed Rate Offset Charge-

(1) FFEL CONSOLIDATION LOANS- Section 438(c) (20 U.S.C. 1087-1(c)) is further amended--

(A) in paragraph (1)(A), by inserting after `paragraph (2) of this subsection' the following: `and the amount the lender is authorized to collect as a fixed rate offset charge in accordance with paragraph (9) of this subsection';

(B) in paragraph (1)(B)--

(i) by inserting `and the fixed rate offset charge' after `origination fee'; and

(ii) by inserting `and fixed rate offset charges' after `origination fees';

(C) in paragraphs (3) and (4), by inserting `and fixed rate offset charge' after `origination fee' each place it appears;

(D) in paragraph (5)--

(i) by inserting `or fixed rate offset charge' after `origination fee'; and

(ii) by inserting `or fixed rate offset charges' after `origination fees';

(E) in paragraph (7), by inserting `and fixed rate offset charges' after `origination fees'; and

(F) by adding at the end the following new paragraph:

`(9) FIXED RATE OFFSET CHARGES FOR CONSOLIDATION LOANS- For any loan under section 428C for which the borrower elects to take a fixed rate under section 427A(k)(5)(C), the lender is authorized to collect a fixed rate offset charge in an amount not to exceed 0.5 percent of the principal amount of the loan. Such amount may be added to the principal amount of the loan for repayment by the borrower.'.

(2) DIRECT LOANS- Section 455(c) (20 U.S.C. 1087e(c)), as amended by subsection (d)(2) of this section, is further amended by adding at the end the following new paragraph:

`(4) FIXED RATE OFFSET CHARGES FOR CONSOLIDATION LOANS- For any Federal Direct Consolidation Loan for which the borrower elects to take a fixed rate under section 455(b)(6)(E)(iii), the Secretary shall collect a fixed rate offset charge in an amount not to exceed 0.5 percent of the principal amount of the loan. Such amount may be added to the principal amount of the loan for repayment by the borrower. Such amount is not subject to the requirements of paragraph (3) of this subsection.'.

SEC. 425. CONSOLIDATION LOAN CHANGES.

(a) Cross-Consolidation Between Programs- Section 428C (20 U.S.C. 1078-3) is amended--

(1) in subsection (a)(3)(B)(i)--

(A) by inserting `or under section 455(g)' after `under this section' both places it appears;

(B) by inserting `under both sections' after `terminates'

(D) by striking the period at the end of subclause (IV) and inserting `; and'; and

(E) by adding at the end the following new subclause:

`(V) an individual may obtain a subsequent consolidation loan under section 455(g) only for the purposes of obtaining an income contingent repayment plan, and only if the loan has been submitted to the guaranty agency for default aversion.'; and

(2) in subsection (b)(5), by striking the first sentence and inserting the following: `In the event that a lender with an agreement under subsection (a)(1) of this section denies a consolidation loan application submitted to it by an eligible borrower under this section, or denies an application submitted to it by such a borrower for a consolidation loan with income-sensitive repayment terms, the Secretary shall offer any such borrower who applies for it, a direct consolidation loan. The Secretary shall offer such a loan to a borrower who has defaulted, for the purpose of resolving the default.'.

(b) Repeal of in-School Consolidation-

(1) DEFINITION OF REPAYMENT PERIOD- Section 428(b)(7)(A) (20 U.S.C. 1078(b)(7)(A)) is amended by striking `shall begin--' and all that follows through `earlier date.' and inserting the following: `shall begin the day after 6 months after the date the student ceases to carry at least one-half the normal full-time academic workload (as determined by the institution).'.

(2) CONFORMING CHANGE TO ELIGIBLE BORROWER DEFINITION- Section 428C(a)(3)(A)(ii)(I) (20 U.S.C. 1078-3(a)(3)(A)(ii)(I)) is amended by inserting `as determined under section 428(b)(7)(A)' after `repayment status'.

(1) in subsection (a)(3), by striking subparagraph (C); and

(2) in subsection (b)(1)--

(A) by striking everything after `under this section' the first place it appears in subparagraph (A) and inserting the following: `and that, if all the borrower's loans under this part are held by a single holder, the borrower has notified such holder that the borrower is seeking to obtain a consolidation loan under this section;';

(B) by striking `(i) which' and all that follows through `and (ii)' in subparagraph (C);

(D) by redesignating subparagraph (F) as subparagraph (G); and

(E) by inserting after subparagraph (E) the following new subparagraph:

`(F) that the lender of the consolidation loan shall, upon application for such loan, provide the borrower with a clear and conspicuous notice of at least the following information:

`(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 loan forgiveness, cancellation, deferment, and reduced interest rates on those underlying loans;

`(iii) the ability of the borrower to prepay the loan, pay on a shorter schedule, and to change repayment plans;

`(iv) that borrower benefit programs may vary among different loan holders, and a description of how the borrower benefits may vary among different loan holders;

`(v) the tax benefits for which borrowers may be eligible;

`(vi) the consequences of default; and

`(vii) that by making the application the applicant is not obligated to agree to take the consolidation loan; and'.

(d) Effective Date for Single Holder Amendment- The amendment made by subsection (c)(2)(A) shall apply with respect to any loan made under section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) for which the application is received by an eligible lender on or after July 1, 2006.

(e) Conforming Amendments to Direct Loan Program- Section 455 (20 U.S.C. 1087e) is amended

(1) in subsection (a)(1) by inserting `428C,' after `428B,';

(2) in subsection (a)(2)--

(A) by striking `and' at the end of subparagraph (B);

(B) by redesignating subparagraph (C) as subparagraph (D); and

`(C) section 428C shall be known as `Federal Direct Consolidation Loans'; and '; and

(3) in subsection (g)--

(A) by striking the second sentence; and

(B) by adding at the end the following new sentences: `To be eligible for a consolidation loan under this part, a borrower must meet the eligibility criteria set forth in section 428C(a)(3). The Secretary, upon application for such a loan, shall comply with the requirements applicable to a lender under section 428C(b)(1)(F).'.

SEC. 426. DEFERMENT OF STUDENT LOANS FOR MILITARY SERVICE.

(a) Federal Family Education Loans- Section 428(b)(1)(M) (20 U.S.C. 1078(b)(1)(M)) is amended--

(1) by striking `or' at the end of clause (ii);

(2) by redesignating clause (iii) as clause (iv); and

(3) by inserting after clause (ii) the following new clause:

`(iii) not in excess of 3 years during which the borrower--

`(I) is serving on active duty during a war or other military operation or national emergency; or

`(II) is performing qualifying National Guard duty during a war or other military operation or national emergency; or'.

(b) Direct Loans- Section 455(f)(2) (20 U.S.C. 1087e(f)(2)) is amended--

(1) by redesignating subparagraph (C) as subparagraph (D); and

(2) by inserting after subparagraph (B) the following new subparagraph:

`(C) not in excess of 3 years during which the borrower--

`(i) is serving on active duty during a war or other military operation or national emergency; or

`(ii) is performing qualifying National Guard duty during a war or other military operation or national emergency; or'.

(1) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; and

(2) by inserting after clause (ii) the following new clause:

`(iii) not in excess of 3 years during which the borrower--

`(I) is serving on active duty during a war or other military operation or national emergency; or

`(II) is performing qualifying National Guard duty during a war or other military operation or national emergency;'.

(d) Definitions- Section 481 (20 U.S.C. 1088) is amended by adding at the end the following new subsection:

`(d) Definitions for Military Deferments- For purposes of parts B, D, and E of this title:

`(1) ACTIVE DUTY- The term `active duty' has the meaning given such term in section 101(d)(1) of title 10, United States Code, except that such term does not include active duty for training or attendance at a service school.

`(2) MILITARY OPERATION- The term `military operation' means a contingency operation as such term is defined in section 101(a)(13) of title 10, United States Code.

`(3) NATIONAL EMERGENCY- The term `national emergency' means the national emergency by reason of certain terrorist attacks declared by the President on September 14, 2001, or subsequent national emergencies declared by the President by reason of terrorist attacks.

`(4) SERVING ON ACTIVE DUTY- The term `serving on active duty during a war or other military operation or national emergency' means service by an individual who is--

`(A) a Reserve of an Armed Force ordered to active duty under section 12301(a), 12301(g), 12302, 12304, or 12306 of title 10, United States Code, or any retired member of an Armed Force ordered to active duty under section 688 of such title, for service in connection with a war or other military operation or national emergency, regardless of the location at which such active duty service is performed; and

`(B) any other member of an Armed Force on active duty in connection with such emergency or subsequent actions or conditions who has been assigned to a duty station at a location other than the location at which such member is normally assigned.

`(5) QUALIFYING NATIONAL GUARD DUTY- The term `qualifying National Guard duty during a war or other military operation or national emergency' means service as a member of the National Guard on full-time National Guard duty (as defined in section 101(d)(5) of title 10, United States Code) under a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days under section 502(f) of title 32, United States Code, in connection with a war, other military operation, or a national emergency declared by the President and supported by Federal funds.'.

(e) Rule of Construction- Nothing in the amendments made by this section shall be construed to authorize any refunding of any repayment of a loan.

(f) Effective Date- The amendments made by this section shall apply with respect to loans for which the first disbursement is made on or after July 1, 1993, to an individual who is a new borrower (within the meaning of section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) on or after such date.

SEC. 427. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.

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

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

`(a) Purposes- The purposes of this section are--

`(1) to encourage highly trained individuals to enter and continue in service in areas of national need; and

`(2) to reduce the burden of student debt for Americans who dedicate their careers to service in areas of national need.

`(b) Program Authorized-

`(1) IN GENERAL- The Secretary is authorized to carry out a program of assuming the obligation to repay, pursuant to paragraphs (2) of subsection (c) and subsection (d), a qualified loan amount for a loan made, insured, or guaranteed under this part or part D (other than loans made under section 428B and 428C and comparable loans made under part D), for any new borrower after the date of enactment of the College Access and Opportunity Act of 2005, who--

`(A) has been employed full-time for at least 5 consecutive complete school, academic, or calendar years, as appropriate, in an area of national need described in subsection (c); and

`(B) is not in default on a loan for which the borrower seeks forgiveness.

`(2) AWARD BASIS- Loan repayment under this section shall be on a first-come, first-served basis pursuant to the designation under subsection (c) and subject to the availability of appropriations.

`(3) REGULATIONS- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.

`(c) Areas of National Need-

`(1) STATUTORY CATEGORIES- For purposes of this section, an individual shall be treated as employed in an area of national need if the individual is employed full time and is any of the following:

`(A) EARLY CHILDHOOD EDUCATORS- An individual who is employed as an early childhood educator in an eligible preschool program or child care facility in a low-income community, and who is involved directly in the care, development and education of infants, toddlers, or young children through age five.

`(B) NURSES- An individual who is employed--

`(i) as a nurse in a clinical setting; or

`(ii) 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)).

`(C) FOREIGN LANGUAGE SPECIALISTS- An individual who has obtained a baccalaureate degree in a critical foreign language and is employed--

`(i) in an elementary or secondary school as a teacher of a critical foreign language; or

`(ii) in an agency of the United States Government in a position that regularly requires the use of such critical foreign language.

`(D) LIBRARIANS- An individual who is employed full-time as a libarian in--

`(i) a public library that serves a geographic area within which the public schools have a combined average of 30 percent or more of their total student enrollments composed of children counted under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965; or

`(ii) an elementary or secondary school which is in the school district of a local educational agency which is eligible in such year for assistance pursuant to title I of the Elementary and Secondary Education Act of 1965, and which for the purpose of this paragraph and for that year has been 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 counted under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 exceeds 30 percent of the total enrollment of that school.

`(E) HIGHLY QUALIFIED TEACHERS: BILINGUAL EDUCATION AND LOW-INCOME COMMUNITIES- An individual who--

`(i) is highly qualified as such term is defined in section 9101 of the Elementary and Secondary Education Act of 1965; and

`(ii)(I) is employed as a full-time teacher of bilingual education; or

`(II) is employed as a teacher for service in a public or nonprofit private elementary or secondary school which is in the school district of a local educational agency which is eligible in such year for assistance pursuant to title I of the Elementary and Secondary Education Act of 1965, and which for the purpose of this paragraph and for that year has been 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 counted under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 exceeds 40 percent of the total enrollment of that school.

`(F) FIRST RESPONDERS IN LOW-INCOME COMMUNITIES- An individual who--

`(i) is employed as a firefighter, police officer, or emergency medical technician; and

`(ii) serves as such in a low-income community.

`(G) CHILD WELFARE WORKERS- An individual who--

`(i) has obtained a degree in social work or a related field with a focus on serving children and families; and

`(ii) is employed in public or private child welfare services.

`(H) SPEECH-LANGUAGE PATHOLOGISTS- An individual who is a speech-language pathologist, who is employed in an eligible preschool program or an elementary or secondary school, and who has, at a minimum, a graduate degree in speech-language pathology, or communication sciences and disorders.

`(I) ADDITIONAL AREAS OF NATIONAL NEED- An individual who is employed in an area designated by the Secretary under paragraph (2) and has completed a baccalaureate or advanced degree related to such area.

`(2) DESIGNATION OF AREAS OF NATIONAL NEED- After consultation with appropriate Federal, State, and community-based agencies and organizations, the Secretary shall designate areas of national need. In making such designations, the Secretary shall take into account the extent to which--

`(A) the national interest in the area is compelling;

`(B) the area suffers from a critical lack of qualified personnel; and

`(C) other Federal programs support the area concerned.

`(d) Qualified Loan Amount- The Secretary shall repay not more than $5,000 in the aggregate of the loan obligation on a loan made under section 428 or 428H that is outstanding after the completion of the fifth consecutive school, academic, or calendar year, as appropriate, described in subsection (b)(1).

`(e) Construction- Nothing in this section shall be construed to authorize the refunding of any repayment of a loan made under section 428 or 428H.

`(f) Ineligibility of National Service Award Recipients- No student borrower may, for the same service, receive a benefit under both this section and subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.).

`(g) Ineligibility for Double Benefits- No borrower may receive a reduction of loan obligations under both this section and section 428J or 460.

`(h) Definitions- In this section

`(1) CHILD CARE FACILITY- The term `child care facility' means a facility, including a home, that--

`(A) provides for the education and care of children from birth through age 5; and

`(B) meets any applicable State or local government licensing, certification, approval, or registration requirements.

`(2) CRITICAL FOREIGN LANGUAGE- The term `critical foreign language' includes the languages of Arabic, Korean, Japanese, Chinese, Pashto, Persian-Farsi, Serbian-Croatian, Russian, Portuguese, and any other language identified by the Secretary of Education, in consultation with the Defense Language Institute, the Foreign Service Institute, and the National Security Education Program, as a critical foreign language need.

`(3) EARLY CHILDHOOD EDUCATOR- The term `early childhood educator' means an early childhood educator employed in an eligible preschool program who has completed a baccalaureate or advanced degree in early childhood development, early childhood education, or in a field related to early childhood education.

`(4) ELIGIBLE PRESCHOOL PROGRAM- The term `eligible preschool program' means a program that provides for the care, development, and education of infants, toddlers, or young children through age 5, meets any applicable State or local government licensing, certification, approval, and registration requirements, and is operated by--

`(A) a public or private school that may be supported, sponsored, supervised, or administered by a local educational agency;

`(B) a Head Start agency serving as a grantee designated under the Head Start Act (42 U.S.C. 9831 et seq.);

`(C) a nonprofit or community based organization; or

`(D) a child care program, including a home.

`(5) LOW-INCOME COMMUNITY- In this subsection, the term `low-income community' means a community in which 70 percent of households earn less than 85 percent of the State median household income.

`(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 section 801 of the Public Health Service Act (42 U.S.C. 296)).

`(iv) A nursing degree from a diploma school of nursing (as defined in section 801 of the Public Health Service Act (42 U.S.C. 296)).

`(7) SPEECH-LANGUAGE PATHOLOGIST- The term `speech-language pathologist' means a speech-language pathologist who meets all of the following:

`(A) the speech-language pathologist 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) of this Act; and

`(B) the speech-language pathologist meets or exceeds the qualifications as defined in section 1861(ll) of the Social Security Act (42 U.S.C. 1395x).

`(i) Authorization of Appropriations- There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years.'.

SEC. 428. UNSUBSIDIZED STAFFORD LOANS.

(a) Amendment- Section 428H(d)(2)(C) (20 U.S.C. 1078-8(d)(2)(C)) is amended by striking `$10,000' and inserting `$12,000'.

(b) Effective Date- The amendment made by subsection (a) shall apply to loans for which the first disbursement of principal is made on or after July 1, 2007.

SEC. 429. ELIMINATION OF TERMINATION DATES FROM TAXPAYER-TEACHER PROTECTION ACT OF 2004.

(a) Extension of Limitations on Special Allowance for Loans From the Proceeds of Tax Exempt Issues- Section 438(b)(2)(B) (20 U.S.C. 1087-1(b)(2)(B)) is amended--

(1) in clause (iv), by striking `and before January 1, 2006,'; and

(2) in clause (v)(II)--

(A) by striking `and before January 1, 2006,' each place it appears in divisions (aa) and (bb); and

(B) by striking `, and before January 1, 2006' in division (cc).

(b) Additional Limitation on Special Allowance for Loans From the Proceeds of Tax Exempt Issues- Section 438(b)(2)(B) (20 U.S.C 1087-1(b)(2)(B)) is further amended by adding at the end thereof the following new clause:

`(vi) Notwithstanding clauses (i), (ii), and (v), the quarterly rate of the special allowance shall be the rate determined under subparagraph (A), (E), (F), (G), (H), or (I) of this paragraph, as the case may be, for a holder of loans--

`(I) that were made or purchased on or after October 1, 2005; or

`(II) that were not earning a quarterly rate of special allowance determined under clauses (i) or (ii) of subparagraph (B) of this paragraph (20 U.S.C. 1087-1(b)(2)(b)) as of October 1, 2005.'.

(c) Elimination of Effective Date Limitation on Higher Teacher Loan Forgiveness Benefits- Paragraph (3) of section 3(b) of the Taxpayer-Teacher Protection Act of 2004 (20 U.S.C. 1078-10, note) is repealed.

(d) Additional Changes to Teacher Loan Forgiveness Provisions-

(1) FFEL PROVISIONS- Section 428J (20 U.S.C. 1078-10) is amended--

(A) in subsection (b)(1)(B), by inserting after `1965' the following: `, or meets the requirements of subsection (g)(3)';

(B) in subsection (c)(3)--

(i) by striking `and' at the end of subparagraph (A);

(ii) by striking the period at the end of subparagraph (B) and inserting `; and'; and

(iii) by inserting after subparagraph (B) the following new subparagraph:

`(C) an elementary or secondary school teacher who primarily teaches reading--

`(i) who meets the requirements of subsection (b);

`(ii) who has obtained a separate reading instruction credential from the State in which the teacher is employed; and

`(iii) who is certified by the chief administrative officer of the public or nonprofit private elementary or secondary school in which the borrower is employed to teach reading--

`(I) as being proficient in teaching the essential components of reading instruction as defined in section 1208 of the Elementary and Secondary Education Act of 1965; and

`(II) as having such credential.'; and

`(3) PRIVATE SCHOOL TEACHERS- An individual who is employed as a teacher in a private school and is exempt from State certification requirements (unless otherwise applicable under State law), may, in lieu of the requirement of subsection (a)(1)(B), have such employment treated as qualifying employment under this section if such individual is permitted to and does satisfy rigorous subject knowledge and skills tests by taking competency tests in the applicable grade levels and subject areas. For such purposes, the competency tests taken by such a private school teacher must be recognized by 5 or more States for the purpose of fulfilling the highly qualified teacher requirements under section 9101 of the Elementary and Secondary Education Act of 1965, and the score achieved by such teacher on each test must equal or exceed the average passing score of those 5 States.'.

(2) DIRECT LOAN PROVISIONS- Section 460 (20 U.S.C. 1087j) is amended--

(A) in subsection (b)(1)(A)(ii), by inserting after `1965' the following: `, or meets the requirements of subsection (g)(3)';

(B) in subsection (c)(3)--

(i) by striking `and' at the end of subparagraph (A);

(ii) by striking the period at the end of subparagraph (B) and inserting `; and'; and

(iii) by inserting after subparagraph (B) the following new subparagraph:

`(C) an elementary or secondary school teacher who primarily teaches reading--

`(i) who meets the requirements of subsection (b);

`(ii) who has obtained a separate reading instruction credential from the State in which the teacher is employed; and

`(iii) who is certified by the chief administrative officer of the public or nonprofit private elementary or secondary school in which the borrower is employed to teach reading--

`(I) as being proficient in teaching the essential components of reading instruction as defined in section 1208 of the Elementary and Secondary Education Act of 1965; and

`(II) as having such credential.'; and

`(3) PRIVATE SCHOOL TEACHERS- An individual who is employed as a teacher in a private school and is exempt from State certification requirements (unless otherwise applicable under State law), may, in lieu of the requirement of subsection (a)(1)(A)(ii), have such employment treated as qualifying employment under this section if such individual is permitted to and does satisfy rigorous subject knowledge and skills tests by taking competency tests in the applicable grade levels and subject areas. For such purposes, the competency tests taken by such a private school teacher must be recognized by 5 or more States for the purpose of fulfilling the highly qualified teacher requirements under section 9101 of the Elementary and Secondary Education Act of 1965, and the score achieved by such teacher on each test must equal or exceed the average passing score of those 5 States.'.

SEC. 430. ADDITIONAL ADMINISTRATIVE PROVISIONS.

(a) Treatment of Exempt Claims-

(1) INSURANCE COVERAGE- Section 428(b)(1)(G) (20 U.S.C. 1078(b)(1)(G)) is amended by inserting before the semicolon at the end the following: `and 100 percent of the unpaid principal amount of exempt claims as defined in subsection (c)(1)(G)'.

(2) TREATMENT- Section 428(c)(1) (20 U.S.C. 1078(c)(1)) is amended--

(A) by redesignating subparagraph (G) as subparagraph (I), and moving such subparagraph 2 em spaces to the left; and

(B) by inserting after subparagraph (F) the following new subparagraph:

`(G)(i) Notwithstanding any other provisions of this section, in the case of exempt claims, the Secretary shall apply the provisions of--

`(I) the fourth sentence of subparagraph (A) by substituting `100 percent' for `95 percent';

`(II) subparagraph (B)(i) by substituting `100 percent' for `85 percent'; and

`(III) subparagraph (B)(ii) by substituting `100 percent' for `75 percent'.

`(ii) For purposes of clause (i) of this subparagraph, the term `exempt claims' means claims with respect to loans for which it is determined that the borrower (or the student on whose behalf a parent has borrowed), without the lender's or the institution's knowledge at the time the loan was made, provided false or erroneous information or took actions that caused the borrower or the student to be ineligible for all or a portion of the loan or for interest benefits thereon.'.

(b) Reduction of Insurance/Reinsurance Percentage-

(1) INSURANCE PERCENTAGE REDUCTION- Section 428(b)(1)(G) as amended by subsection (a)(1) is further amended by inserting after the matter inserted by such subsection the following: `, except, for any loan for which the first disbursement of principal is made on or after July 1, 2006, the preceding provisions of this subparagraph shall be applied by substituting `96 percent' for `98 percent'.

(2) REINSURANCE PERCENTAGE REDUCTION- Section 428(c)(1) as amended by subsection (a)(2) is further amended by adding after subparagraph (G) as added by such subsection the following new subparagraph:

`(H) Notwithstanding subparagraphs (A) and (B), but subject to subparagraphs (E) and (F), in the case of a loan for which the first disbursement of principal is made on or after July 1, 2006, the Secretary shall apply--

`(i) the fourth sentence of subparagraph (A) by substituting `93 percent' for `95 percent';

`(ii) subparagraph (B)(i) by substituting `83 percent' for `85 percent'; and

`(iii) subparagraph (B)(ii) by substituting `73 percent' for `75 percent'.'.

(3) INCREASE INSURANCE FOR EXCEPTIONAL PERFORMANCE- Section 428I (20 U.S.C. 1078-9) is amended to read as follows:

`SEC. 428I. SPECIAL INSURANCE AND REINSURANCE RULES FOR EXCEPTIONAL PERFORMANCE.

`(a) Designation of Lenders and Servicers-

`(1) IN GENERAL- Whenever the Secretary determines that an eligible lender or servicer meets the performance measures required by paragraph (2), the Secretary shall designate that eligible lender or servicer, as the case may be, for exceptional performance. The Secretary shall notify each appropriate guaranty agency of the eligible lenders and servicers designated under this section.

`(2) PERFORMANCE MEASURES-

`(A) In determining whether to award a lender or servicer the exceptional performance designation, the Secretary shall require that the lender or servicer be performing at or above the 95 percentile of the industry, and demonstrate improved performance against the lender's or service's average of the last 3 years on the factors described in subparagraph (B).

`(B) The factors on which the Secretary shall require improvement shall include--

`(i) delinquency rates;

`(ii) the rate at which delinquent accounts are restored to good standing;

`(iii) default rates;

`(iv) the rate of rejected claims; and

`(v) any other such measures as determined by the Secretary.

`(C) In addition, the Secretary shall not make any award of such a designation unless the consequence of the designation is cost-neutral to the Federal Government.

`(3) ADDITIONAL INFORMATION ON LENDERS AND SERVICERS- Each appropriate guaranty agency shall provide the Secretary with such other information in its possession regarding an eligible lender or servicer desiring designation as may relate to the Secretary's determination under paragraph (1), including but not limited to any information suggesting that the application of a lender or servicer for designation should not be approved.

`(4) DETERMINATIONS BY THE SECRETARY-

`(A) The Secretary shall designate an eligible lender or servicer for exceptional performance if the eligible lender or servicer meets the performance measures required by paragraph (2).

`(B) The Secretary shall make the determination under paragraph (1) based upon the documentation submitted by the eligible lender or servicer as specified in regulation, such other information as provided by any guaranty agency under paragraph (3), and any information in the possession of the Secretary or submitted by any other agency or office of the Federal Government.

`(C) The Secretary shall inform the eligible lender or servicer and the appropriate guaranty agency that its application for designation as an exceptional performance lender or servicer has been approved or disapproved.

`(5) TRANSITION-

`(A) Any eligible lender or servicer designated for exceptional performance as of the day before the date of enactment of the College Access and Opportunity Act of 2005 shall continue to be so designated, and subject to the requirements of this section as in effect on that day (including revocation), until the performance standards described in paragraph (2) are established.

`(B) The Secretary shall not designate any additional eligible lenders or servicers for exceptional performance until those performance standards are established.

`(b) Payment to Lenders and Servicers- A guaranty agency shall pay, to each eligible lender or servicer (as agent for an eligible lender) designated under subsection (a), 98 percent of the unpaid principal and interest of all loans for which claims are submitted for payment by that eligible lender or servicer for the one-year period following the receipt by the guaranty agency of the notification of designation under this section, or until the guaranty agency receives notice from the Secretary that the designation of the lender or servicer under subsection (a)(2) has been revoked.

`(c) Revocation Authority-

`(1) The Secretary shall revoke the designation of a lender or a servicer under subsection (a) if the Secretary determines that the lender or servicer has failed to meet the performance standards required by subsection (a)(2).

`(2) Notwithstanding any other provision of this section, a designation under subsection (a) may be revoked at any time by the Secretary, in the Secretary's discretion, if the Secretary determines that the eligible lender or servicer has failed to meet the criteria and performance standards established by the Secretary in regulation, or if the Secretary believes the lender or servicer may have engaged in fraud in securing designation under subsection (a), or is failing to service loans in accordance with program regulations.

`(d) Documentation- Nothing in this section shall restrict or limit the authority of guaranty agencies to require the submission of claims documentation evidencing servicing performed on loans, except that the guaranty agency may not require greater documentation than that required for lenders and servicers not designated under subsection (a).

`(e) Special Rule- Reimbursements made by the Secretary on loans submitted for claim by an eligible lender or loan servicer designated for exceptional performance under this section shall not be subject to additional review by the Secretary or repurchase by the guaranty agency for any reason other than a determination by the Secretary that the eligible lender or loan servicer engaged in fraud or other purposeful misconduct in obtaining designation for exceptional performance.

`(f) Limitation- Nothing in this section shall be construed to affect the processing of claims on student loans of eligible lenders not subject to this section.

`(g) Claims- A lender or servicer designated under subsection (a) failing to service loans or otherwise comply with applicable program regulations shall be considered in violation of section 3729 of title 31, United States Code.

`(h) Termination- The Secretary may terminate the designation of lenders and servicers under this section if he determines that termination would be in the fiscal interest of the United States.

`(i) Definitions- As used in this section--

`(1) the term `eligible loan' means a loan made, insured, or guaranteed under this part; and

`(2) the term `servicer' means an entity servicing and collecting student loans that--

`(A) has substantial experience in servicing and collecting consumer loans or student loans;

`(B) has an independent financial audit annually which is furnished to the Secretary and any other parties designated by the Secretary;

`(C) has business systems which are capable of meeting the requirements of this part;

`(D) has adequate personnel who are knowledgeable about the student loan programs authorized by this part; and

`(E) does not have any owner, majority shareholder, director, or officer of the entity who has been convicted of a felony.'.

(4) EFFECTIVE DATE OF AMENDMENTS- The amendments made by this subsection shall apply with respect to loans for which the first disbursement of principal is made on or after July 1, 2006.

(1) in paragraph (3)(A)(i), by striking `in writing'; and

(2) by adding at the end the following new paragraph:

`(10) DOCUMENTATION OF FORBEARANCE AGREEMENTS- For the purposes of paragraph (3), the terms of forbearance agreed to by the parties shall be documented by confirming the agreement of the borrower by notice to the borrower from the lender, and by recording the terms in the borrower's file.'.

(d) Consolidation of Defaulted Loans- Section 428(c) (20 U.S.C. 1078(c)) is further amended--

(1) in paragraph (2)(A)--

(A) by inserting `(i)' after `including'; and

(B) by inserting before the semicolon at the end the following: `and (ii) requirements establishing procedures to preclude consolidation lending from being an excessive proportion of guaranty agency recoveries on defaulted loans under this part';

(2) in paragraph (2)(D), by striking `paragraph (6)' and inserting `paragraph (6)(A)'; and

(3) in paragraph (6)--

(A) by inserting `(A)' before `For the purpose of paragraph (2)(D),';

(B) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; and

`(B) A guaranty agency shall--

`(i) on or after October 1, 2006--

`(I) not charge the borrower collection costs in an amount in excess of 18.5 percent of the outstanding principal and interest of a defaulted loan that is paid off through consolidation by the borrower under this title; and

`(II) remit to the Secretary a portion of the collection charge under subclause (I) equal to 8.5 percent of the outstanding principal and interest of such defaulted loan; and

`(ii) on and after October 1, 2009, remit to the Secretary the entire amount charged under clause (i)(I) with respect to each defaulted loan that is paid off with excess consolidation proceeds.

`(C) For purposes of subparagraph (B), the term `excess consolidation proceeds' means, with respect to any guaranty agency for any Federal fiscal year beginning on or after October 1, 2009, the proceeds of consolidation of defaulted loans under this title that exceed 45 percent of the agency's total collections on defaulted loans in such Federal fiscal year.'.

(e) Voluntary Flexible Agreements- Section 428A (20 U.S.C. 1078-1) is amended--

(1) in subsection (a)(1)(B), by striking `unless the Secretary' and all that follows through `designated guarantor';

(2) by striking paragraph (2) of subsection (a);

(3) in paragraph (4)(B) of subsection (a), by striking `and any waivers provided to other guaranty agencies under paragraph (2)';

(4) by redesignating paragraphs (3) and (4) of subsection (a) as paragraphs (2) and (3), respectively; and

(5) by striking paragraph (3) of subsection (c) and inserting the following:

`(3) NOTICE TO INTERESTED PARTIES- Once the Secretary reaches a tentative agreement in principle under this section, the Secretary shall publish in the Federal Register a notice that invites interested parties to comment on the proposed agreement. The notice shall state how to obtain a copy of the tentative agreement in principle and shall give interested parties no less than 30 days to provide comments. The Secretary may consider such comments prior to providing the notices pursuant to paragraph (2).'.

(f) Fraud: Repayment Required- Section 428B(a)(1) (20 U.S.C. 1078-2(a)(1)) is amended--

(1) by striking `and' at the end of subparagraph (A);

(2) by striking the period at the end of subparagraph (B) and inserting `; and'; and

(3) by adding at the end the following new subparagraph:

`(C) if either of the parents has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining funds under this title, such parent has completed the repayment of such funds to the Secretary, or to the holder in the case of a loan under this title obtained by fraud.'.

(g) Default Reduction Program- Section 428F(a)(1) (20 U.S.C. 1078-6(a)(1)) is amended--

(1) in subparagraph (A), by striking `consecutive payments for 12 months' and inserting `9 payments made within 20 days of the due date during 10 consecutive months';

(2) by redesignating subparagraph (C) as subparagraph (D); and

(3) by inserting after subparagraph (B) the following new subparagraph:

`(C) A guaranty agency may charge the borrower and retain collection costs in an amount not to exceed 18.5 percent of the outstanding principal and interest at the time of sale of a loan rehabilitated under subparagraph (A).'.

(h) Financial and Economic Literacy-

(1) DEFAULT REDUCTION PROGRAM- Section 428F is further amended by adding at the end the following:

`(c) Financial and Economic Literacy- Where appropriate, each program described under subsection (b) shall include making available financial and economic education materials for the borrower.'.

(2) PROGRAM ASSISTANCE FOR BORROWERS- Section 432(k)(1) (20 U.S.C. 1082(k)(1)) is amended by striking `and offering' and all that follows through the period and inserting `, offering loan repayment matching provisions as part of employee benefit packages, and providing employees with financial and economic education and counseling.'.

(i) Credit Bureau Organization Agreements- Section 430A(a) (20 U.S.C. 1080a(a)) is amended by striking `agreements with credit bureau organizations' and inserting `an agreement with each national credit bureau organization (as described in section 603(p) of the Fair Credit Reporting Act)'.

(j) Uniform Administrative and Claims Procedure- Section 432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) is amended by inserting `and anticipated graduation date' after `status change'.

(k) Default Reduction Management- Section 432 is further amended--

(1) by striking subsection (n); and

(2) by redesignating subsections (o) and (p) as subsections (n) and (o), respectively.

(l) Schools as Lenders- Paragraph (2) of section 435(d) (20 U.S.C. 1085(d)(2)) is amended to read as follows:

`(2) REQUIREMENTS FOR ELIGIBLE INSTITUTIONS-

`(A) IN GENERAL- To be an eligible lender under this part, an eligible institution--

`(i) shall employ at least one person whose full-time responsibilities are limited to the administration of programs of financial aid for students attending such institution;

`(ii) shall not be a home study school;

`(iii) shall not--

`(I) make a loan to any undergraduate student;

`(II) make a loan other than a loan under section 428 or 428H to a graduate or professional student; or

`(III) make a loan to a borrower who is not enrolled at that institution;

`(iv) shall award any contract for financing, servicing, or administration of loans under this title on a competitive basis;

`(v) shall offer loans which carry an origination fee or an interest rate, or both, that are less than such fee or rate authorized under the provisions of this title;

`(vi) shall not have a cohort default rate (as defined in section 435(m)) greater than 10 percent;

`(vii) shall, for any year for which the institution engages in activities as an eligible lender, provide for a compliance audit conducted in accordance with section 428(b)(1)(U)(iii)(I), and the regulations thereunder, and submit the results of such audit to the Secretary; and

`(viii) shall use any proceeds from special allowance payments and interest payments from borrowers, interest subsidies received from the Department of Education, and any proceeds from the sale or other disposition of loans, for need-based grant programs.

`(B) ADMINISTRATIVE EXPENSES- An eligible lender under subparagraph (A) shall be permitted to use a portion of the proceeds described in subparagraph (A)(viii) for reasonable and direct administrative expenses.

`(C) SUPPLEMENT, NOT SUPPLANT- An eligible lender under subparagraph (A) shall ensure that the proceeds described in subparagraph (A)(viii) are used to supplement, and not to supplant, non-Federal funds that would otherwise be used for need-based grant programs.'.

(m) Disability Determinations- Section 437(a) (20 U.S.C. 1087(a)) is amended by adding at the end the following new sentence: `In making such determination of permanent and total disability, the Secretary shall provide that a borrower who has been certified as permanently and totally disabled by the Department of Veterans Affairs or the Social Security Administration shall not be required to present further documentation for purposes of this title.'.

(n) Treatment of Falsely Certified Borrowers- Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is amended by inserting `or parent's eligibility' after `such student's eligibility'.

(o) Perfection of Security Interests- Section 439(d) (20 U.S.C. 1087-2(d)) is amended--

(1) by striking paragraph (3); and

(2) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.

(p) Additional Technical Amendments-

(1) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is amended--

(A) by striking `and' at the end of subclause (II) of clause (i); and

(B) by moving the margin of clause (iii) two ems to the left.

(2) Section 428(a)(3)(A)(v) (20 U.S.C. 1078(a)(3)(A)(v)) is amended--

(A) by striking `or' at the end of subclause (I);

(B) by striking the period at the end of subclause (II) and inserting `; or'; and

`(III) in the case of a loan disbursed through an escrow agent, 3 days before the first disbursement of the loan.'.

(3) Section 428(c)(1)(A) (20 U.S.C. 1078(c)(1)(A)) is amended by striking `45 days' in the last sentence and inserting `30 days'.

(4) Section 428(i)(1) (20 U.S.C. 1078(i)(1)) is amended by striking `21 days' in the third sentence and inserting `10 days'.

(5) Section 428G(e) (20 U.S.C. 1078-7(e)) is amended by striking `, made to a student to cover the cost of attendance at an eligible institution outside the United States,'.

(6) Section 428H(e) (20 U.S.C. 1078-8(e)) is amended by striking paragraph (6) and inserting the following:

`(6) TIME LIMITS ON BILLING INTEREST- A lender may not receive interest on a loan under this section from a borrower for any period that precedes the dates described in section 428(a)(3)(A)(v).'.

(7) Section 432(m)(1)(B) (20 U.S.C. 1082(m)(1)(B)) is amended--

(A) in clause (i), by inserting `and' after the semicolon at the end; and

(B) in clause (ii), by striking `; and' and inserting a period.

(8) Section 438(b)(4)(B) (20 U.S.C. 1087-1(b)(4)(B)) is amended by striking `shall be computed' and all that follows through `to the loan' and inserting `described in subparagraph (A) shall be computed using the interest rate described in section 3902(a) of title 31, United States Code,'.

PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

Section 441(b) (42 U.S.C. 2751(b)) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding' and inserting `5 succeeding'.

SEC. 442. COMMUNITY SERVICE.

Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended by striking `that are open and accessible to the community'.

SEC. 443. ALLOCATION OF FUNDS.

(a) Phaseout of Allocation Based on Previous Allocations- Subsection (a) of section 442 (42 U.S.C. 2752(a)) is amended to read as follows:

`(a) Allocation Based on Previous Allocation-

`(1) BASE GUARANTEE- From the amount appropriated pursuant to section 441(b) for each fiscal year after fiscal year 2007, the Secretary shall, subject to paragraph (2), first allocate to each eligible institution an amount equal to the following percentage of the amount such institution received under subsection (a) of this section for fiscal year 2007 (as such subsection was in effect with respect to allocations for such fiscal year):

`(A) 80 percent for fiscal years 2008 and 2009;

`(B) 60 percent for fiscal years 2010 and 2011;

`(C) 40 percent for fiscal years 2012 and 2013;

`(D) 20 percent for fiscal years 2014 and 2015; and

`(E) 0 percent for fiscal year 2016 and any succeeding fiscal year.

`(2) RATABLE REDUCTIONS FOR INSUFFICIENT APPROPRIATIONS-

`(3) ADDITIONAL ALLOCATIONS FOR CERTAIN INSTITUTIONS-

`(A) ALLOCATIONS PERMITTED- Notwithstanding any other provision of this section, the Secretary may allocate an amount equal to not more than 10 percent of the amount by which the amount appropriated in any fiscal year to carry out this part exceeds $700,000,000 among eligible institutions described in subparagraph (B).

`(B) ELIGIBLE INSTITUTIONS- An otherwise eligible institution may receive a portion of the allocation described in subparagraph (A) if--

`(i) not less than 10 percent of the students attending the institution receive Federal Pell Grants; and

(b) Effective Date- The amendment made by subsection (a) shall apply with respect to any amounts appropriated under section 441(b) of the Higher Education Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 2008 or any succeeding fiscal year.

SEC. 444. 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. 445. JOB LOCATION AND DEVELOPMENT.

Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended--

(1) by striking `10 percent or $50,000' and inserting `15 percent or $75,000'; and

(2) by inserting before the period at the end the following: `, except that not less than one-third of such amount shall be specifically allocated to locate and develop community service jobs'.

SEC. 446. 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 amending subparagraph (C) of subsection (e)(1) to read as follows:

`(C) requires all resident 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 5 hours each week, or at least 80 hours during each period of enrollment, unless the student is engaged in an institutionally organized or approved study abroad or externship program; and';

(3) by amending paragraph (2) of subsection (e) to read as follows:

`(2) the term `comprehensive student work-learning-service program'--

`(A) means a student work-learning-service program that 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

(4) in subsection (f), by striking `1999 and such sums as may be necessary for each of the 4 succeeding fiscal years' and inserting `2006 and such sums as may be necessary for the 5 succeeding fiscal years'.

PART D--FEDERAL DIRECT LOAN PROGRAM

SEC. 451. REAUTHORIZATION OF THE DIRECT LOAN PROGRAM.

(a) Administrative Expenses- Section 458(a)(1) (20 U.S.C. 1087h(a)(1)) is amended by striking `$617,000,000' and all that follows through `fiscal year 2003' and inserting `$820,000,000 in fiscal year 2006, $833,000,000 in fiscal year 2007, $847,000,000 in fiscal year 2008, $862,000,000 in fiscal year 2009, and $878,000,000 in fiscal year 2010, and $894,000,000 in fiscal year 2011'.

(b) Calculation Basis- Subsection (b) of section 458 (20 U.S.C. 1087h(b)) is amended by striking `shall be calculated--' and all that follows through the end of such subsection and inserting `shall be calculated on the basis of 0.10 percent of the original principal amount of outstanding loans on which insurance was issued under part B.'.

(c) Special Rules: Fee Cap- Section 458(c)(1) (20 U.S.C. 1087h(c)(1)) is amended by striking subparagraphs (A) through (E) and inserting the following:

`(A) for fiscal year 2006, shall not exceed $220,000,000;

`(B) for fiscal year 2007, shall not exceed $233,000,000;

`(C) for fiscal year 2008, shall not exceed $247,000,000;

`(D) for fiscal year 2009, shall not exceed $262,000,000;

`(E) for fiscal year 2010, shall not exceed $278,000,000; and

`(F) for fiscal year 2011, shall not exceed $294,000,000.'.

(d) Income Contingent Repayment- Section 455(e)(2) (20 U.S.C. 1087e(e)(2)) is amended by striking `and files a Federal income tax return jointly with the borrower's spouse'.

PART E--FEDERAL PERKINS LOAN PROGRAM

SEC. 461. REAUTHORIZATION OF PROGRAM.

(a) Program Authorization-

(1) AUTHORIZATION OF APPROPRIATIONS- Section 461(b) (20 U.S.C. 1087aa(b)) is amended--

(A) in paragraph (1)--

(i) by striking `1999' and inserting `2006'; and

(ii) by striking `4 succeeding' and inserting `5 succeeding'; and

(B) in paragraph (2), by striking `2003' each place it appears and inserting `2012'.

(2) FEDERAL CAPITAL CONTRIBUTION RECOVERY- Section 466 (20 U.S.C. 1087ff) is amended--

(A) by striking `2004' each place it appears in subsections (a) and (c) and inserting `2012'; and

(B) in subsection (a), by striking `2003' each place it appears and inserting `2011'.

(b) Phaseout of Allocation Based on Previous Allocations-

(1) AMENDMENT- Subsection (a) of section 462 (20 U.S.C. 1087bb(a)) is amended to read as follows:

`(a) Allocation Based on Previous Allocation-

`(1) BASE GUARANTEE- From the amount appropriated pursuant to section 461(b) for each fiscal year after fiscal year 2007, the Secretary shall, subject to paragraphs (2) and (3), first allocate to each eligible institution an amount equal to--

`(A) 100 percent of the amount such institution received under subsection (a) of this section for fiscal year 2007 (as such subsection was in effect with respect to allocations for such fiscal year), multiplied by

`(B) the institution's default penalty, as determined under subsection (e), except that if the institution has a cohort default rate in excess of the applicable maximum cohort default rate under subsection (f), the institution may not receive an allocation under this paragraph.

`(2) PHASE OUT- For each of the fiscal years after fiscal year 2007, paragraph (1) shall be applied by substituting for `100 percent':

`(A) `80 percent' for fiscal years 2008 and 2009;

`(B) `60 percent' for fiscal years 2010 and 2011;

`(C) `40 percent' for fiscal years 2012 and 2013;

`(D) `20 percent' for fiscal years 2014 and 2015; and

`(E) `0 percent' for fiscal year 2016 and any succeeding fiscal year.

`(3) RATABLE REDUCTIONS FOR INSUFFICIENT APPROPRIATIONS-

(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply with respect to any amounts appropriated under section 461(b) of the Higher Education Act of 1965 (20 U.S.C. 1087bb(b)) for fiscal year 2008 or any succeeding fiscal year.

(c) 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. 462. 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

(b) Forbearance- Section 464(e) (20 U.S.C. 1087dd(e)) is amended by striking `, upon written request,'.

`(2) No compromise repayment of a defaulted loan as authorized by paragraph (1) may be made unless agreed to by the Secretary.'.

(d) Rehabilitation- Section 464(h)(1)(A) (20 U.S.C. 1087dd(h)(1)(A)) is amended by striking `12 ontime' and inserting `9 on-time'.

SEC. 463. LOAN CANCELLATION.

Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is amended--

(1) by inserting `(D),' after `subparagraph (A), (C),' in clause (i);

(2) by inserting `or' after the semicolon at the end of clause (ii);

(3) by striking clause (iii); and

(4) by redesignating clause (iv) as clause (iii).

SEC. 464. TECHNICAL AMENDMENTS.

Part E is further amended as follows:

(1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 1087bb(g)(1)(E)(i)(I)) is amended by inserting `monthly' after `consecutive'.

(2) Section 463(a)(4)(A) (20 U.S.C. 1087cc(a)(4)(A)) is amended by striking `the Secretary may' and inserting `the Secretary shall'.

(3) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is amended by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively.

(4) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended in subparagraph (A), by striking `section 111(c)' and inserting `section 1113(a)(5)'.

(5) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by striking `(5)(A), (5)(B)(i), or (6)' and inserting `(4)(A), (4)(B), or (5)'.

(6) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--

(A) by striking `sections 602 and 632' and inserting `sections 602(3) and 632(5)';

(B) by striking `qualified professional provider of early intervention services' and inserting `early intervention services'; and

PART F--NEED ANALYSIS

SEC. 471. SIGNIFICANTLY SIMPLIFYING THE STUDENT AID APPLICATION PROCESS.

(a) Expanding the Auto-Zero and Further Simplifying the Simplified Needs Test-

(1) SIMPLIFIED NEEDS TEST- Section 479 (20 U.S.C. 1087ss) is amended--

(A) in subsection (b)--

(i) in paragraph (1)--

(I) by striking clause (i) of subparagraph (A) and inserting the following:

`(i) the student's parents file, or are eligible to file, a form described in paragraph (3) or certify that they are not required to file an income tax return, and the student files, or is eligible to file, such a form or certifies that the student is not required to file an income tax return, or the student's parents, or the student, received benefits at some time during the previous 12-month period under a means-tested Federal benefit program as defined under subsection (d); and'; and

(II) by striking clause (i) of subparagraph (B) and inserting the following:

`(i) the student (and the student's spouse, if any) files, or is eligible to file, a form described in paragraph (3) or certifies that the student (and the student's spouse, if any) is not required to file an income tax return, or the student (and the student's spouse, if any) received benefits at some time during the previous 12-month period under a means-tested Federal benefit program as defined under subsection (d); and'; and

(ii) in paragraph (3), by striking `A student or family files a form described in this subsection, or subsection (c), as the case may be, if the student or family, respectively, files' and inserting `In the case of an independent student, the student, or in the case of a dependent student, the parent, files a form described in this subsection, or subsection (c), as the case may be, if the student or parent, as appropriate, files';

(B) in subsection (c)--

(i) in paragraph (1), by striking subparagraph (A) and inserting the following:

`(A) the student's parents file, or are eligible to file, a form described in subsection (b)(3) or certify that they are not required to file an income tax return, and the student files, or is eligible to file, such a form or certifies that the student is not required to file an income tax return, or the student's parents, or the student, received benefits at some time during the previous 12-month period under a means-tested Federal benefit program as defined in subsection (d); and'; and

(ii) in paragraph (2), by striking subparagraph (A) and inserting the following:

`(A) the student (and the student's spouse, if any) files, or is eligible to file, a form described in subsection (b)(3) or certifies that the student (and the student's spouse, if any) is not required to file an income tax return, or the student (and the student's spouse, if any) received benefits at some time during the previous 12-month period under a means-tested Federal benefit program as defined in subsection (d); and'; and

`(d) Definition of Means-Tested Federal Benefit Program- For the purposes of this section, the term `means-tested Federal benefit program' means a mandatory spending program of the Federal Government, other than a program under this title, in which eligibility for the program's benefits, or the amount of such benefits, or both, are determined on the basis of income or resources of the individual or family seeking the benefit, and may include such programs as the supplemental security income program under title XVI of the Social Security Act, the food stamp program under the Food Stamp Act of 1977, the free and reduced price school lunch program established under the Richard B. Russell National School Lunch Act, the temporary assistance to needy families program established under part A of title IV of the Social Security Act, and the women, infants and children program established under Section 17 of the Child Nutrition Act of 1966, and other programs identified by the Secretary.

`(e) Reporting Requirements- The Secretary shall regularly evaluate the impact of the eligibility guidelines in subsections (b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A) and (c)(2)(A) of this section. In particular, the Secretary shall evaluate whether, under the definition of means-tested Federal benefit programs in subsection (d), the Simplified Needs Test continues to be targeted to the maximum number of low- and moderate-income students.'.

(b) Improvements to Paper and Electronic Forms-

(1) COMMON FINANCIAL AID FORM DEVELOPMENT AND PROCESSING- Section 483(a) (20 U.S.C. 1090(a)) is amended--

(A) by striking paragraphs (1), (2), and (5);

(B) by redesignating paragraphs (3), (4), (6), and (7), as paragraphs (9), (10), (11), and (12), respectively;

`(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). These 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' .

`(2) EARLY ESTIMATES-

`(A) IN GENERAL- The Secretary shall permit applicants to complete such forms as described in this subsection in the 4 years prior to enrollment in order to obtain a non-binding estimate of the family contribution, as defined in section 473. The estimate shall clearly and conspicuously indicate that it is only an estimate of family contribution, and may not reflect the actual family contribution of the applicant that shall be used to determine the grant, loan, or work assistance that the applicant may receive under this title when enrolled in a program of postsecondary education. Such applicants shall be permitted to update information submitted on forms described in this subsection using the process required under paragraph (5)(A).

`(B) EVALUATION- Two years after the early estimates are implemented under this paragraph and from data gathered from the early estimates, the Secretary shall evaluate the differences between initial, non-binding early estimates and the final financial aid award made available under this title.

`(C) REPORT- The Secretary shall provide a report to the authorizing committees on the results of the evaluation.

`(3) PAPER FORMAT-

`(A) IN GENERAL- The Secretary shall produce, distribute, and process common forms in paper format to meet the requirements of paragraph (1). The Secretary shall develop a common paper form for applicants who do not meet the requirements of subparagraph (B).

`(B) EZ FAFSA-

`(i) IN GENERAL- The Secretary shall develop and use a simplified paper application form, to be known as the `EZ FAFSA', to be used for applicants meeting the requirements of section 479(c).

`(ii) REDUCED DATA REQUIREMENTS- The form under this subparagraph 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 section 479(c).

`(iii) STATE DATA- The Secretary shall include on the form under this subparagraph such data items as may be necessary to award State financial assistance, as provided under paragraph (6), except that the Secretary shall not include a State's data if that State does not permit its applicants for State assistance to use the form under this subparagraph.

`(iv) FREE AVAILABILITY AND PROCESSING- The provisions of paragraph (7) shall apply to the form under this subparagraph, and the data collected by means of the form under this subparagraph shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (9).

`(v) TESTING- The Secretary shall conduct appropriate field testing on the form under this subparagraph.

`(C) PROMOTING THE USE OF ELECTRONIC FAFSA-

`(i) IN GENERAL- The Secretary shall make an effort to encourage applicants to utilize the electronic forms described in paragraph (4).

`(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. The printable electronic file will be made easily accessible and downloadable to students on the same website used to provide students with the electronic application forms described in paragraph (4) of this subsection. The Secretary shall enable students to submit a form created under this subparagraph that is downloaded and printed from an electronic file format in order to meet the filing requirements of this section and in order to receive aid from programs under this title.

`(iii) REPORTING REQUIREMENT- The Secretary shall report annually to Congress on the impact of the digital divide on students completing applications for title IV aid described under this paragraph and paragraph (4). The Secretary will also report on the steps taken to eliminate the digital divide and phase out the paper form described in subparagraph (A) of this paragraph. The Secretary's report will specifically address the impact of the digital divide on the following student populations: dependent students, independent students without dependents, and independent students with dependents other than a spouse.

`(4) ELECTRONIC FORMAT-

`(A) IN GENERAL- The Secretary shall produce, distribute, and process common forms in electronic format to meet the requirements of paragraph (1). The Secretary shall develop common electronic forms for applicants who do not meet the requirements of subparagraph (C) of this paragraph.

`(B) STATE DATA- The Secretary shall include on the common electronic forms space for information that needs to be submitted from the applicant to be eligible for State financial assistance, as provided under paragraph (6), except the Secretary shall not require applicants to complete data required by any State other than the applicant's State of residence.

`(C) SIMPLIFIED APPLICATIONS: FAFSA ON THE WEB-

`(i) IN GENERAL- The Secretary shall develop and use a simplified electronic application form to be used by applicants meeting the requirements under subsection (c) of section 479 and an additional, separate simplified electronic application form to be used by applicants meeting the requirements under subsection (b) of section 479.

`(ii) REDUCED DATA REQUIREMENTS- The simplified electronic application 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) STATE DATA- The Secretary shall include on the simplified electronic application forms such data items as may be necessary to award state financial assistance, as provided under paragraph (6), except that the Secretary shall not require applicants to complete data required by any State other than the applicant's State of residence.

`(iv) AVAILABILITY AND PROCESSING- The data collected by means of the simplified electronic application forms shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (9).

`(v) TESTING- The Secretary shall conduct appropriate field testing on the forms developed under this subparagraph.

`(D) USE OF FORMS- Nothing in this subsection shall be construed to prohibit the use of the forms developed by the Secretary pursuant to this paragraph by an eligible institution, eligible lender, guaranty agency, State grant agency, private computer software provider, a consortium thereof, or such other entities as the Secretary may designate.

`(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 permit an electronic form under this paragraph to be submitted without a signature, if a signature is subsequently submitted by the applicant.

`(5) STREAMLINING-

`(A) STREAMLINED REAPPLICATION PROCESS-

`(i) IN GENERAL- The Secretary shall develop streamlined reapplication forms and processes, including both paper and electronic reapplication processes, consistent with the requirements of this subsection, for an applicant who applies for financial assistance under this title--

`(I) in the academic year succeeding the year in which such applicant first applied for financial assistance under this title; or

`(II) in any succeeding academic years.

`(ii) MECHANISMS FOR REAPPLICATION- The Secretary shall develop appropriate mechanisms to support reapplication.

`(iii) IDENTIFICATION OF UPDATED DATA- The Secretary shall determine, in cooperation with States, institutions of higher education, agencies, and organizations involved in student financial assistance, the data elements that can be updated from the previous academic year's application.

`(iv) 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.

`(v) 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 that which is necessary to determine eligibility under such section.

`(B) REDUCTION OF DATA ELEMENTS-

`(i) REDUCTION ENCOURAGED- Of the number of data elements on the FAFSA on the date of enactment of the College Access and Opportunity Act of 2005 (including questions on the FAFSA for the purposes described in paragraph (6)), the Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance, shall continue to reduce the number of such data elements following the date of enactment. Reductions of data elements under paragraph (3)(B), (4)(C), or (5)(A)(iv) shall not be counted towards the reduction referred to in this paragraph unless those data elements are reduced for all applicants.

`(ii) REPORT- The Secretary shall annually report to the House of Representatives and the Senate on the progress made of reducing data elements.

`(6) STATE REQUIREMENTS-

`(A) IN GENERAL- 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 State need-based financial aid under section 415C, except as provided in paragraphs (3)(B)(iii) and (4)(C)(iii) of this subsection. Such items shall be selected in consultation with State agencies in order to assist in the awarding of State financial assistance in accordance with the terms of this subsection, except as provided in paragraphs (3)(B)(iii) and (4)(C)(iii) of this subsection. The number of such data items shall not be less than the number included on the form on October 7, 1998, unless a State notifies the Secretary that the State no longer requires those data items for the distribution of State need-based financial aid.

`(B) ANNUAL REVIEW- The Secretary shall conduct an annual review process to determine which forms and data items the States require to award State need-based financial aid and other application requirements that the States may impose.

`(C) STATE USE OF SIMPLIFIED FORMS- The Secretary shall encourage States to take such steps as necessary to encourage the use of simplified application forms, including those described in paragraphs (3)(B) and (4)(C), to meet the requirements under subsection (b) or (c) of section 479.

`(D) FEDERAL REGISTER NOTICE- The Secretary shall publish on an annual basis a notice in the Federal Register requiring State agencies to inform the Secretary--

`(i) if the State agency is unable to permit applicants to utilize the simplified application forms described in paragraphs (3)(B) and (4)(C); and

`(ii) of the State-specific data that the State agency requires for delivery of State need-based financial aid.

`(E) STATE NOTIFICATION TO THE SECRETARY-

`(i) IN GENERAL- Each State agency shall notify the Secretary--

`(I) whether the State permits an applicant to file a form described in paragraph (3)(B) or paragraph (4)(C) of this subsection for purposes of determining eligibility for State need-based financial aid; and

`(II) the State-specific data that the State agency requires for delivery of State need-based financial aid.

`(ii) ACCEPTANCE OF FORMS- In the event that a State does not permit an applicant to file a form described in paragraph (3)(B) or paragraph (4)(C) of this subsection for purposes of determining eligibility for State need-based financial aid--

`(I) the State shall notify the Secretary if the State is not permitted to do so because of either State law or because of agency policy; and

`(II) the notification under subclause (I) shall include an estimate of the program cost to permit applicants to complete simplified application forms under paragraphs (3)(B) and paragraph (4)(C) of this subsection.

`(iii) LACK OF NOTIFICATION BY THE STATE- If a State does not notify the Secretary pursuant to clause (i), the Secretary shall--

`(I) permit residents of that State to complete simplified application forms under paragraphs (3)(B) and paragraph (4)(C) of this subsection; and

`(II) not require any resident of that State to complete any data previously required by that State under this section.

`(7) CHARGES TO STUDENTS AND PARENTS FOR USE OF FORMS PROHIBITED-

`(A) FEES PROHIBITED- The FAFSA, in whatever form (including the EZ-FAFSA, paper, electronic, simplified, or reapplication), shall be produced, distributed, and processed by the Secretary and no parent or student shall be charged a fee for the collection, processing, or delivery of financial aid through the use of the FAFSA. The need and eligibility of a student for financial assistance under parts A through E of this title (other than under subpart 4 of part A) may only be determined by using the FAFSA developed by the Secretary pursuant to this subsection. No student may receive assistance under parts A through E of this title (other than under subpart 4 of part A), except by use of the FAFSA developed by the Secretary pursuant to this subsection. No data collected on a form for which a fee is charged shall be used to complete the FAFSA.

`(B) NOTICE- Any entity that provides to students or parents, or charges students or parents for, any value-added services with respect to or in connection with the FAFSA, such as completion of the FAFSA, submission of the FAFSA, or tracking of the FAFSA for a student, shall provide to students and parents clear and conspicuous notice that--

`(i) the FAFSA is a free Federal student aid application;

`(ii) the FAFSA can be completed without professional assistance; and

`(iii) includes the current Internet address for the FAFSA on the Department's web site.

`(8) APPLICATION PROCESSING CYCLE- The Secretary shall enable students to submit a form created under this subsection in order to meet the filing requirements of this section and in order to receive aid from programs under this title and shall initiate the processing of applications under this subsection as early as practicable prior to January 1 of the student's planned year of enrollment.'.

(2) MASTER CALENDAR- Section 482(a)(1)(B) (20 U.S.C. 1089) is amended to read as follows:

`(B) by March 1: proposed modifications, updates, and notices pursuant to sections 478, 479(c)(2)(C), and 483(a)(6) published in the Federal Register;'.

`(f) Addressing the Digital Divide- The Secretary shall utilize savings accrued by moving more applicants to the electronic forms described in subsection (a)(4) to improve access to the electronic forms described in subsection (a)(4) for applicants meeting the requirements of section 479(c).'.

(d) Expanding the Definition of an Independent Student- Section 480(d) (20 U.S.C.1087vv(d)) is amended by striking paragraph (2) and inserting the following:

`(2) is an orphan, in foster care, or a ward of the court, or was in foster care or a ward of the court until the individual reached the age of 18;'.

SEC. 472. ADDITIONAL NEED ANALYSIS AMENDMENTS.

(a) Income Protection Allowance for Dependent Students- --

(1) AMENDMENT- Section 475(g)(2)(D) (20 U.S.C. 1087oo(g)(2)(D)) is amended by striking `$2,200' and inserting `$3,000'.

(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply with respect to determinations of need for periods of enrollment beginning on or after July 1, 2006.

(b) Employment Expense Allowance- Section 478(h) (20 U.S.C. 1087rr(h)) is amended--

(1) by striking `476(b)(4)(B),'; and

(2) by striking `meals away from home, apparel and upkeep, transportation, and housekeeping services' and inserting `food away from home, apparel, transportation, and household furnishings and operations'.

(1) by striking `(a) In General- ' and inserting the following:

`(a) Authority to Make Adjustments-

`(1) ADJUSTMENTS FOR SPECIAL CIRCUMSTANCES- ';

(2) by inserting before `Special circumstances may' the following:

`(2) SPECIAL CIRCUMSTANCES DEFINED- ';

(3) by inserting `a student's status as a ward of the court at any time prior to attaining 18 years of age, a student's status as an individual who was adopted at or after age 13, a student's status as a homeless or unaccompanied youth (as defined in section 725 of the McKinney-Vento Homeless Assistance Act),' after `487,';

(4) by inserting before `Adequate documentation' the following:

`(3) DOCUMENTATION AND USE OF SUPPLEMENTARY INFORMATION- '; and

(5) by inserting before `No student' the following:

`(4) FEES FOR SUPPLEMENTARY INFORMATION PROHIBITED- '.

(d) Treating Active Duty Members of the Armed Forces as Independent Students- Section 480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by inserting before the semicolon at the end the following: `or is currently serving on active duty in the Armed Forces for other than training purposes'.

(e) Excludable Income- Section 480(e) (20 U.S.C. 1087vv(e)) is amended--

(1) by striking `and' at the end of paragraph (3);

(2) by striking the period at the end of paragraph (4) and inserting `; and'; and

(3) by adding at the end the following new paragraph:

`(5) any part of any distribution from a qualified tuition program established under section 529 of the Internal Revenue Code of 1986 that is not includable in gross income under such section 529.'.

(f) Treatment of Savings Plans-

(1) AMENDMENT- Section 480(f) (20 U.S.C. 1087vv(f)) is amended--

(A) in paragraph (1), by inserting `qualified tuition programs established under section 529 of the Internal Revenue Code of 1986 (26 U.S.C. 529), except as provided in paragraph (2),' after `tax shelters,';

(B) by redesignating paragraph (2) as paragraph (3); and

`(2) A qualified tuition program shall not be considered an asset of a dependent student under section 475 of this part. The value of a qualified tuition program for purposes of determining the assets of parents or independent students shall be--

`(A) the refund value of any tuition credits or certificates purchased under section 529 of the Internal Revenue Code of 1986 (26 U.S.C. 529) on behalf of a beneficiary; or

`(B) the current balance of any account which is established under such section for the purpose of meeting the qualified higher education expenses of the designated beneficiary of the account.'.

(2) CONFORMING AMENDMENT- Section 480(j) (20 U.S.C. 1087vv(j)) is amended--

(A) by striking `; Tuition Prepayment Plans' in the heading of such subsection;

(B) by striking paragraph (2);

(C) in paragraph (3), by inserting `, or a distribution that is not includable in gross income under section 529 of such Code,' after `1986'; and

(D) by redesignating paragraph (3) as paragraph (2).

(g) Treatment of Family Ownership of Small Businesses- Section 480(f)(3) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(3)), as redesignated by subsection (f) of this section, is amended--

(1) in subparagraph (A), by striking `or';

(2) in subparagraph (B), by striking the period at the end and inserting `; or'; and

(3) by adding at the end the following new subparagraph:

`(C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family.'.

(h) Designated Assistance- Section 480(j) (20 U.S.C. 1087vv(j)) is amended by adding after paragraph (2) (as redesignated by subsection (f)(2)(D) of this section) the following new paragraph:

`(3) Notwithstanding paragraph (1) and section 472, assistance not received under this title may be excluded from both estimated financial assistance and cost of attendance, if that assistance is designated by the State providing that assistance to offset a specific component of the cost of attendance. If that assistance is excluded from either estimated financial assistance or cost of attendance, it shall be excluded from both.'.

PART G--GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL ASSISTANCE

SEC. 481. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE PROGRAM.

(a) Academic Year- Paragraph (2) of section 481(a) (20 U.S.C. 1088(a)) is amended to read as follows:

`(2)(A) For the purpose of any program under this title, the term `academic year' shall--

`(i) require a minimum of 30 weeks of instructional time for a course of study that measures its program length in credit hours; or

`(ii) require a minimum of 26 weeks of instructional time for a course of study that measures its program length in clock hours; and

`(iii) require an undergraduate course of study to contain an amount of instructional time whereby a full-time student is expected to complete at least--

`(I) 24 semester or trimester hours or 36 quarter credit hours in a course of study that measures its program length in credit hours; or

`(II) 900 clock hours in a course of study that measures its program length in clock hours.

`(B) The Secretary may reduce such minimum of 30 weeks to not less than 26 weeks for good cause, as determined by the Secretary on a case-by-case basis, in the case of an institution of higher education that provides a 2-year or 4-year program of instruction for which the institution awards an associate or baccalaureate degree.'.

(b) Eligible Program- Section 481(b) (20 U.S.C. 1088(b)) is amended by adding at the end the following new paragraph:

`(3) For purposes of this title, an eligible program includes an instructional program that utilizes direct assessment of student learning, or recognizes the direct assessment of student learning, in lieu of credit hours or clock hours as the measure of student learning. In the case of a program being determined eligible for the first time under this paragraph, such determination shall be made by the Secretary before such program is considered to be eligible. The Secretary shall provide an annual report to Congress identifying the programs made eligible under this paragraph.'.

SEC. 482. DISTANCE EDUCATION.

(a) Distance Education: Eligible Program- Section 481(b) (20 U.S.C. 1088(b)) is amended by adding after paragraph (3) (as added by section 481(b) of this Act) the following new paragraph:

`(4) An otherwise eligible program that is offered in whole or in part through telecommunications is eligible for the purposes of this title if the program is offered by an institution, other than a foreign institution, that has been evaluated and determined (before or after the date of enactment of this paragraph) to have the capability to effectively deliver distance education programs by an accrediting agency or association that--

`(A) is recognized by the Secretary under subpart 2 of Part H; and

`(B) has evaluation of distance education programs within the scope of its recognition, as described in section 496(n)(3).'.

(1) in subparagraph (A)--

(A) by striking `for a program of study of 1 year or longer'; and

(B) by striking `unless the total' and all that follows through `courses at the institution'; and

(2) by amending subparagraph (B) to read as follows:

`(B) EXCEPTION- Subparagraph (A) does not apply to an institution or school described in section 3(3)(C) of the Carl D. Perkins Vocational and Technical Education Act of 1998.'.

SEC. 483. EXPANDING INFORMATION DISSEMINATION REGARDING ELIGIBILITY FOR PELL GRANTS.

Section 483(a) (20 U.S.C. 1090(a)) (as amended by section 471(b)) is further amended by adding at the end the following new paragraph:

`(13) EXPANDING INFORMATION DISSEMINATION REGARDING ELIGIBILITY FOR PELL GRANTS- The Secretary shall make special efforts, in conjunction with State efforts, to notify students and their parents who qualify for a free lunch under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.), the Food Stamps program, or such other programs as the Secretary shall determine, of their potential eligibility for a maximum Pell Grant, and shall disseminate such informational materials as the Secretary deems appropriate.'.

SEC. 484. STUDENT ELIGIBILITY.

(a) Fraud: Repayment Required- Section 484(a) (20 U.S.C. 1091(a)) is amended--

(1) by striking the period at the end of paragraph (5) and inserting `; and'; and

(2) by adding at the end the following new paragraph:

`(6) if the student has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining funds under this title, have completed the repayment of such funds to the Secretary, or to the holder in the case of a loan under this title obtained by fraud.'.

(b) Technical Amendment- Section 484(b)(5) (20 U.S.C. 1091(b)(5)) is amended by inserting `or parent (on behalf of a student)' after `student'.

(c) Loan Ineligibility Based on Involuntary Civil Commitment for Sexual Offenses- Section 484(b)(5) (20 U.S.C. 1091(b)(5)) is further amended by inserting before the period the following: `, and no student who is subject to an involuntary civil commitment upon completion of a period of incarceration for a sexual offense (as determined under regulations of the Secretary) is eligible to receive a loan under this title'.

(d) Freely Associated States- Section 484(j) (20 U.S.C. 1091(j)) is amended by inserting `and shall be eligible only for assistance under subpart 1 of part A thereafter,' after `part C,'.

(e) Verification of Income Date- Paragraph (1) of section 484(q) (20 U.S.C. 1091(q)) is amended to read as follows:

`(1) CONFIRMATION WITH IRS- The Secretary of Education, in cooperation with the Secretary of the Treasury, is authorized to confirm with the Internal Revenue Service the information specified in section 6103(l)(13) of the Internal Revenue Code of 1986 reported by applicants (including parents) under this title on their Federal income tax returns for the purpose of verifying the information reported by applicants on student financial aid applications.'.

(f) Suspension of Eligibility for Drug Offenses- Section 484(r)(1) (20 U.S.C. 1091(r)(1)) is amended by striking everything preceding the table and inserting the following:

`(1) IN GENERAL- A student who is convicted of any offense under any Federal or State law involving the possession or sale of a controlled substance for conduct that occurred during a period of enrollment for which the student was receiving any grant, loan, or work assistance under this title shall not be eligible to receive any grant, loan, or work assistance under this title from the date of that conviction for the period of time specified in the following table:'.

SEC. 485. INSTITUTIONAL REFUNDS.

Section 484B (20 U.S.C. 1091b) is amended--

(1) in subsection (a)(1), by inserting `subpart 4 of part A or' after `received under';

(2) in subsection (a)(2), by striking `takes a leave' and by inserting `takes one or more leaves';

(3) in subsection (a)(3)(B)(ii), by inserting `(as determined in accordance with subsection (d))' after `student has completed';

(4) in subsection (a)(4), by amending subparagraph (A) to read as follows:

`(A) IN GENERAL- After determining the eligibility of the student for a late disbursement or post-withdrawal disbursement (as required in regulations prescribed by the Secretary), the institution of higher education shall contact the borrower and obtain confirmation that the loan funds are still required by the borrower. In making such contact, the institution shall explain to the borrower the borrower's obligation to repay the funds following any such disbursement. The institution shall document in the borrower's file the result of such contact and the final determination made concerning such disbursement.';

(5) in subsection (b)(1), by inserting `no later than 45 days from the determination of withdrawal' after `return';

(6) in subsection (b)(2), by amending subparagraph (C) to read as follows:

`(C) GRANT OVERPAYMENT REQUIREMENTS-

`(i) IN GENERAL- Notwithstanding subparagraphs (A) and (B), a student shall only be required to return grant assistance in the amount (if any) by which--

`(I) the amount to be returned by the student (as determined under subparagraphs (A) and (B)), exceeds

`(II) 50 percent of the total grant assistance received by the student under this title for the payment period or period of enrollment.

`(ii) MINIMUM- A student shall not be required to return amounts of $50 or less.';

(7) in subsection (b)(2), by adding at the end the following new subparagraph:

`(D) WAIVERS OF PELL GRANT REPAYMENT BY STUDENTS AFFECTED BY DISASTERS- The Secretary may waive the amounts that students are required to return under this section with respect to Pell grants if the withdrawals on which the returns are based are withdrawals by students--

`(i) who were residing in, employed in, or attending an institution of higher education that is located in an area in which the President has declared that a major disaster exists, in accordance with section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170);

`(ii) whose attendance was interrupted because of the impact of the disaster on the student or the institution; and

`(iii) whose withdrawal ended within the academic year during which the designation occurred or during the next succeeding academic year.'; and

(8) in subsection (d), by striking `(a)(3)(B)(i)' and inserting `(a)(3)(B)'.

SEC. 486. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR STUDENTS.

(a) Information Dissemination Activities- Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended--

(1) by amending the second sentence to read as follows: `The information required by this section shall be produced and be made publicly available to an enrolled student and to any prospective student, through appropriate publications, mailings, electronic media, and the reports required by the institution's accrediting agency under section 496(c)(9).';

(2) by amending subparagraph (G) to read as follows:

`(G) the academic programs of the institution, including--

`(i) the current degree programs and other educational and training programs;

`(ii) the institution's educational mission and goals;

`(iii) the instructional, laboratory, and other physical plant facilities which relate to the academic programs; and

`(iv) the faculty and other instructional personnel;';

(3) by striking subparagraph (L) and inserting the following:

`(L) a summary of student outcomes for full-time undergraduate students, including--

`(i) the completion or graduation rates of certificate- or degree-seeking undergraduate students entering such institutions; and

`(ii) any other student outcome data, qualitative or quantitative, including data regarding distance education, deemed by the institution to be appropriate to its stated educational mission and goals, and, when applicable, licensing and placement rates for professional and vocational programs;';

(4) by inserting before the semicolon at the end of subparagraph (J) the following: `, and the process for students to register complaints with the accrediting agencies or associations';

(5) in subparagraph (M), by striking `guaranteed student loans under part B of this title or direct student loans under part E of this title, or both,' and inserting `student loans under part B, D, or E of this title';

(6) by striking `and' at the end of subparagraph (N);

(7) by striking the period at the end of subparagraph (O) and inserting a semicolon; and

(8) by adding at the end the following new subparagraphs:

`(P) the penalties contained in subsection 484(r) regarding suspension of eligibility for drug related offenses;

`(Q) the policies of the institution regarding the acceptance or denial of academic credit earned at another institution of higher education, which shall include a statement that such decisions will not be based solely on the source of accreditation of a sending institution, provided that the sending institution is accredited by an agency or association that is recognized by the Secretary pursuant to section 496 to be a reliable authority as to the quality of the education or training offered, and except that nothing in this subparagraph shall be construed to--

`(i) 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;

`(ii) limit the application of the General Education Provisions Act; or

`(iii) create any legally enforceable right; and'.

(b) Additional Amendments- Section 485(a) is further amended by striking paragraph (6) and inserting the following:

`(6) Each institution may provide supplemental information to enrolled and prospective students showing the completion or graduation rate for students described in paragraph (4). For the purpose of this paragraph, the definitions provided in the Integrated Postsecondary Education Data System shall apply.

`(7) Each eligible institution participating in any program under this title may publicly report to currently enrolled and prospective students the voluntary information collected by the National Survey of Student Engagement (NSSE), the Community College Survey of Student Engagement (CCSSE), or other instruments that provide evidence of student participation in educationally purposeful activities. The information shall be produced and made available in a uniform and comprehensible manner, through appropriate publications, mailings, and electronic media, and may be included in reports required by the institution's accrediting agency.'.

`(3) Each eligible institution shall, during the exit interview required by this subsection, provide to a borrower of a loan made under part B, D, or E a clear and conspicuous notice describing the effect of using a consolidation loan to discharge the borrower's student loans, including--

`(A) the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;

`(B) the effects of consolidation on a borrower's underlying loan benefits, including loan forgiveness, cancellation, and deferment;

`(C) the ability for the borrower to prepay the loan, pay on a shorter schedule, and to change repayment plans, and that borrower benefit programs may vary among different loan holders;

`(D) the tax benefits for which the borrower may be eligible; and

`(E) the consequences of default.'.

(d) Campus Crime Information- Section 485(f)(1) (20 U.S.C. 1092(f)(1)) is amended by inserting `, other than a foreign institution of higher education,' after `under this title'.

(e) Disclosure of Fire Safety of Campus Buildings- Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092) is further amended--

(1) in subsection (a)(1), by adding after subparagraph (Q) (as added by subsection (a)(8) of this section) the following new subparagraph:

`(R) the fire safety report prepared by the institution pursuant to subsection (h).'; and

(2) by adding at the end the following new subsection:

`(h) Disclosure of Fire Safety Standards and Measures-

`(1) ANNUAL FIRE SAFETY REPORTS REQUIRED- Each institution participating in any program under this title shall, beginning in the first academic year that begins after the date of enactment of the College Access and Opportunity Act of 2005, and each year thereafter, prepare, publish, and distribute, through appropriate publications (including the Internet) or mailings, to all current students and employees, and to any applicant for enrollment or employment upon request, an annual fire safety report. Such reports shall contain at least the following information with respect to the campus fire safety practices and standards of that institution:

`(A) A statement that identifies each institution-owned or controlled student housing facility, and whether or not such facility is equipped with a fire sprinkler system or other fire safety system, or has fire escape planning or protocols.

`(B) Statistics for each such facility concerning the occurrence of fires and false alarms in such facility during the 2 preceding calendar years for which data are available.

`(C) For each such occurrence in each such facility, a summary of the human injuries or deaths, structural or property damage, or combination thereof.

`(D) Information regarding rules on portable electrical appliances, smoking and open flames (such as candles), regular mandatory supervised fire drills, and planned and future improvements in fire safety.

`(E) Information about fire safety education and training provided to students, faculty, and staff.

`(F) Information concerning fire safety at any housing facility owned or controlled by a fraternity, sorority, or student group that is recognized by the institution, including--

`(i) information reported to the institution under paragraph (4); and

`(ii) a statement concerning whether and how the institution works with recognized student fraternities and sororities, and other recognized student groups owning or controlling housing facilities, to make each building and property owned or controlled by such fraternities, sororities, and groups more fire safe.

`(2) FRATERNITIES, SORORITIES, AND OTHER GROUPS- Each institution participating in a program under this title shall request each fraternity and sorority that is recognized by the institution, and any other student group that is recognized by the institution and that owns or controls housing facilities, to collect and report to the institution the information described in subparagraphs (A) through (E) of paragraph (1), as applied to the fraternity, sorority, or recognized student group, respectively, for each building and property owned or controlled by the fraternity, sorority, or group, respectively.

`(3) CURRENT INFORMATION TO CAMPUS COMMUNITY- Each institution participating in any program under this title shall make, keep, and maintain a log, written in a form that can be easily understood, recording all on-campus fires, including the nature, date, time, and general location of each fire and all false fire alarms. All entries that are required pursuant to this paragraph shall, except where disclosure of such information is prohibited by law, be open to public inspection, and each such institution shall make annual reports to the campus community on such fires and false fire alarms in a manner that will aid the prevention of similar occurrences.

`(4) REPORTS TO THE SECRETARY- On an annual basis, each institution participating in any program under this title shall submit to the Secretary a copy of the statistics required to be made available under paragraph (1)(B). The Secretary shall--

`(A) review such statistics;

`(B) make copies of the statistics submitted to the Secretary available to the public; and

`(C) in coordination with nationally recognized fire organizations and representatives of institutions of higher education, identify exemplary fire safety policies, procedures, and practices and disseminate information concerning those policies, procedures, and practices that have proven effective in the reduction of campus fires.

`(5) 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 fire safety.

`(6) DEFINITIONS- In this subsection, the term `campus' has the meaning provided in subsection (f)(6).'.

SEC. 487. COLLEGE ACCESS INITIATIVE.

Part G is further amended by inserting after section 485C (20 U.S.C. 1092c) the following new section:

`SEC. 485D. COLLEGE ACCESS INITIATIVE.

`(a) State-by-State Information- The Secretary shall direct each guaranty agency with which the Secretary has an agreement under section 428(c) to provide to the Secretary the information necessary for the development of web links and access for students and families to a comprehensive listing of the postsecondary education opportunities, programs, publications, Internet Web sites, and other services available in the States for which such agency serves as the designated guarantor.

`(b) Guaranty Agency Activities-

`(1) PLAN AND ACTIVITY REQUIRED- Each guaranty agency with which the Secretary has an agreement under section 428(c) shall develop a plan and undertake the activity necessary to gather the information required under subsection (a) and to make such information available to the public and to the Secretary in a form and manner as prescribed by the Secretary.

`(2) ACTIVITIES- Each guaranty agency shall undertake such activities as are necessary to promote access to postsecondary education for students through providing information on college planning, career preparation, and paying for college. The guaranty agency shall publicize such information and coordinate such activities with other entities that either provide or distribute such information in the States for which such guaranty agency serves as the designated guarantor.

`(3) FUNDING- The activities required by this section may be funded from the guaranty agency's operating account established pursuant to section 422B and, to the extent funds remain, from earnings on the restricted account established pursuant to section 422(h)(4).

`(c) Access to Information-

`(1) SECRETARY'S RESPONSIBILITY- The Secretary shall ensure the availability of the information provided by the guaranty agencies in accordance with this section to students, parents, and other interested individuals, through web links or other methods prescribed by the Secretary.

`(2) GUARANTY AGENCY RESPONSIBILITY- The guaranty agencies shall ensure that the information required by this section is available without charge in printed format for students and parents requesting such information.

`(3) PUBLICITY- Within 270 days after the date of enactment of the College Access and Opportunity Act of 2005, the Secretary and guaranty agencies shall publicize the availability of the information required by this section, with special emphasis on ensuring that populations that are traditionally underrepresented in postsecondary education are made aware of the availability of such information.'.

SEC. 488. DISTANCE EDUCATION DEMONSTRATION PROGRAM.

(a) Eligible Applicants- Section 486(b)(3) (20 U.S.C. 1093(b)(3)) is amended--

(1) in subparagraph (B), by striking `section 102(a)(1)(C)' and inserting `section 102'; and

(2) in subparagraph (C), by striking `subsection (a) of section 102, other than the requirement of paragraph (3)(A) or (3)(B) of such subsection,' and inserting `section 101, other than the requirements of subparagraph (A) or (B) of subsection (b)(4) of such section'.

(b) Selection- Section 486(d)(1) (20 U.S.C. 1093(d)(1)) is amended--

(1) by striking `the third year' and inserting `subsequent years';

(2) by striking `35 institutions' and inserting `100 institutions'; and

(3) by adding at the end the following new sentence: `Not more than 5 of such institutions, systems, or consortia may be accredited, degree-granting correspondence schools.'.

SEC. 489. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.

Part G of title IV is amended by inserting after section 486 (20 U.S.C. 1093) the following new section:

`SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.

`(a) Purpose- It is the purpose of this section--

`(1) to provide, through a college affordability demonstration program, for increased innovation in the delivery of higher education and student financial aid in a manner resulting in reduced costs for students as well as the institution by employing one or more strategies including accelerating degree or program completion, increasing availability of, and access to, distance components of education delivery, engaging in collaborative arrangements with other institutions and organizations, and other alternative methodologies; and

`(2) to help determine--

`(A) the most effective means of delivering student financial aid as well as quality education;

`(B) the specific statutory and regulatory requirements that should be altered to provide for more efficient and effective delivery of student financial aid, as well as access to high quality distance education programs, resulting in a student more efficiently completing postsecondary education; and

`(C) the most effective methods of obtaining and managing institutional resources.

`(b) Demonstration Program Authorized-

`(1) IN GENERAL- In accordance with the purposes described in subsection (a) and the provisions of subsection (d), the Secretary is authorized to select not more than 100 institutions of higher education, including those applying as part of systems or consortia of such institutions, for voluntary participation in the College Affordability Demonstration Program in order to enable participating institutions to carry out such purposes by providing programs of postsecondary education, and making available student financial assistance under this title to students enrolled in those programs, in a manner that would not otherwise meet the requirements of this title.

`(2) WAIVERS- The Secretary is authorized to waive for any institutions of higher education, or any system or consortia of institutions of higher education, selected for participation in the College Affordability Demonstration Program, any requirements of this Act or the regulations thereunder as deemed necessary by the Secretary to meet the purpose described in subsection (a)(1), and shall make a determination that the waiver can reasonably be expected to result in reduced costs to students or institutions without an increase in Federal program costs. The Secretary may not waive under this paragraph the maximum award amounts for an academic year or loan period.

`(3) ELIGIBLE APPLICANTS-

`(A) ELIGIBLE INSTITUTIONS- Except as provided in subparagraph (B), only an institution of higher education that is eligible to participate in programs under this title shall be eligible to participate in the demonstration program authorized under this section.

`(B) PROHIBITION- An institution of higher education described in section 102 shall not be eligible to participate in the demonstration program authorized under this section.

`(c) Application-

`(1) IN GENERAL- Each institution or system of institutions 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 OF APPLICATIONS- Each application for the college affordability demonstration program shall include at least the following:

`(A) a description of the institution or system or consortium of institutions and what quality assurance mechanisms are in place to insure the integrity of the Federal financial aid programs;

`(B) a description of the innovation or innovations being proposed and the affected programs and students, including--

`(i) a description of any collaborative arrangements with other institutions or organizations to reduce costs;

`(ii) a description of any expected economic impact of participation in the program within the community in which the institution is located; and

`(iii) a description of any means the institution will employ to reduce the costs of instructional materials, such as textbooks;

`(C) a description of each regulatory or statutory requirement for which waivers are sought, with a reason for each waiver;

`(D) a description of the expected outcomes of the program changes proposed, including the estimated reductions in costs both for the institution and for students;

`(E) a description of the quality assurance mechanisms in place to ensure the integrity of the Federal financial aid programs;

`(F) an assurance from each institution in a system or consortium of a commitment to fulfill its role as described in the application;

`(G) an assurance that the participating institution or system of institutions will offer full cooperation with the ongoing evaluations of the demonstration program provided for in this section; and

`(H) any other information or assurances the Secretary may require.

`(d) Selection- In selecting institutions to participate in the demonstration program under this section, the Secretary shall take into account--

`(1) the number and quality of applications received, determined on the basis of the contents required by subsection (c)(2);

`(2) the Department's capacity to oversee and monitor each institution's participation;

`(3) an institution's--

`(A) financial responsibility;

`(B) administrative capability;

`(C) program or programs being offered via distance education, if applicable;

`(D) student completion rates; and

`(E) student loan default rates; and

`(4) the participation of a diverse group of institutions with respect to size, mission, and geographic distribution.

`(e) Notification- The Secretary shall make available to the public and to the authorizing committees a list of institutions selected to participate in the demonstration program authorized by this section. Such notice shall include a listing of the specific statutory and regulatory requirements being waived for each institution and a description of the innovations being demonstrated.

`(f) Evaluations and Reports-

`(1) EVALUATION- The Secretary shall evaluate the demonstration program authorized under this section on a biennial basis. Such evaluations specifically shall review--

`(A) the extent to which expected outcomes, including the estimated reductions in cost, were achieved;

`(B) the number and types of students participating in the programs offered, including the progress of participating students toward recognized certificates or degrees and the extent to which participation in such programs increased;

`(C) issues related to student financial assistance associated with the innovations undertaken;

`(D) effective technologies and alternative methodologies for delivering student financial assistance;

`(E) the extent of the cost savings to the institution, the student, and the Federal Government by virtue of the waivers provided, and an estimate as to future cost savings for the duration of the demonstration program;

`(F) the extent to which students saved money by virtue of completing their postsecondary education sooner;

`(G) the extent to which the institution reduced its tuition and fees and its costs by virtue of participation in the demonstration program;

`(H) the extent to which any collaborative arrangements with other institutions or organizations have reduced the participating institution's costs; and

`(I) the extent to which statutory or regulatory requirements not waived under the demonstration program present difficulties for students or institutions.

`(2) POLICY ANALYSIS- The Secretary shall review current policies and identify those policies that present impediments to the implementation of innovations that result in cost savings and in expanding access to education.

`(3) REPORTS- The Secretary shall provide a report to the authorizing committees on a biennial basis regarding--

`(A) the demonstration program authorized under this section;

`(B) the results of the evaluations conducted under paragraph (1);

`(C) the cost savings to the Federal Government by the demonstration program authorized by this section; and

`(D) recommendations for changes to increase the efficiency and effective delivery of financial aid.

`(g) Oversight- In conducting the demonstration program authorized under this section, the Secretary shall, on a continuing basis--

`(1) ensure compliance of institutions or systems of institutions with the requirements of this title (other than the sections and regulations that are waived under subsection (b)(2));

`(2) provide technical assistance to institutions in their application to and participation in the demonstration program;

`(3) monitor fluctuations in the student population enrolled in the participating institutions or systems of institutions;

`(4) monitor changes in financial assistance provided at the institution; and

`(5) consult with appropriate accrediting agencies or associations and appropriate State regulatory authorities.

`(h) Termination of Authority- The authority of the Secretary under this section shall cease to be effective on October 1, 2011.'.

SEC. 490. PROGRAM PARTICIPATION AGREEMENTS.

(a) Refund Policies- Section 487(a) (20 U.S.C. 1094(a)) is amended--

(1) in paragraph (16), by inserting `or other Federal, State, or local government funds' after `funds under this title' each place it appears;

(2) in paragraph (22), by striking `refund policy' and inserting `policy on the return of title IV funds'; and

(3) in paragraph (23)--

(A) by moving subparagraph (C) 2 em spaces to the left; and

(B) by adding after such subparagraph the following new subparagraph:

`(D) An institution shall be considered in compliance with the requirements of subparagraph (A) for any student to whom the institution electronically transmits a message containing a voter registration form acceptable for use in the State in which the institution is located, or an Internet address where such a form can be downloaded, provided such information is in an electronic message devoted to voter registration.'.

(b) Enforcing the 90/10 Rule-

(1) AMENDMENT- Section 487(a) (20 U.S.C. 1094(a)) is further amended by adding at the end the following new paragraph:

`(24) The institution will, as calculated in accordance with subsection (f)(1), have at least 10 percent of its revenues from sources other than funds provided under this title, or will be subject to the sanctions described in subsection (f)(2).'.

(2) IMPLEMENTATION- Section 487 is further amended by adding at the end the following new subsection:

`(f) Implementation of Non-Title IV Revenue Requirement-

`(1) CALCULATION- In carrying out subsection (a)(24), an institution shall use the cash basis of accounting and count the following funds toward the 10 percent of revenues from sources of funds other than funds provided under this title:

`(A) funds used by students to pay tuition, fees, and other institutional charges from sources other than funds provided under this title as long as the institution can reasonably demonstrate that such funds were used for such purposes;

`(B) institutional funds used to satisfy matching-fund requirements for programs under this title;

`(C) funds from savings plans for educational expenses established pursuant to the Internal Revenue Code of 1986;

`(D) funds paid by a student, or on behalf of a student by a party other than the institution, for an education or training program that is not eligible for funds under this title, so long as the program is approved or licensed by the appropriate State agency or an accrediting agency recognized by the Secretary; and

`(E) institutional aid, as follows:

`(i) in the case of institutional loans, only the amount of loan repayments received during the fiscal year; and

`(ii) in the case of institutional scholarships, only those 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 the fiscal year from an established restricted account, and only to the extent that the funds in that account represent designated funds from an outside source or from income earned on those funds.

`(2) SANCTIONS- An institution that fails to meet the requirements of subsection (a)(24) for 3 consecutive years shall become ineligible to participate in the programs authorized by this title. In addition to such other means of enforcing the requirements of this title as may be available to the Secretary, if an institution fails to meet the requirements of subsection (a)(24) in any year, the Secretary may impose one or more of the following sanctions on the institution:

`(A) Place the institution on provisional certification in accordance with section 498(h) until the institution demonstrates, to the satisfaction of the Secretary, that it is in compliance with subsection (a)(24).

`(B) Require such other increased monitoring and reporting requirements as the Secretary determines necessary until the institution demonstrates, to the satisfaction of the Secretary, that it is in compliance with subsection (a)(24).

`(3) PUBLICATION ON COOL WEBSITE- The Secretary shall identify, on the College Opportunities On-Line website under section 131(b), any institution that fails to meet the requirements of subsection (a)(24) in any year as an institution that is failing to meet the minimum non-Federal source of revenue requirements of that subsection.'.

(1) AMENDMENT- Section 487(a) (20 U.S.C. 1094(a)) is further amended by adding after paragraph (24), as added by subsection (b) of this section, the following new paragraph:

`(25) The institution will disclose to the alleged victim of any crime of violence (as that term is defined in section 16 of title 18), or a nonforcible sex offense, the final 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, the next of kin of such victim shall be treated as the alleged victim for purposes of this paragraph.'.

(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply with respect to any disciplinary proceeding conducted by such institution on or after one year after the date of enactment of this Act.

(d) Audit Requirements- 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 receive less than $500,000 in loans under this title during the award year preceding the audit period'.

SEC. 491. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS.

Part G is further amended as follows:

(1) Section 483(d) (20 U.S.C. 1090(d)) is amended by striking `that is authorized under section 685(d)(2)(C)' and inserting `, or another appropriate provider of technical assistance and information on postsecondary educational services, that is supported under section 663'.

(2) Section 484 (20 U.S.C. 1091) is amended--

(A) in subsection (a)(4), by striking `certification,,' and inserting `certification,'; and

(B) in subsection (b)(2)--

(i) in the matter preceding subparagraph (A), by striking `section 428A' and inserting `section 428H';

(ii) in subparagraph (A), by inserting `and' after the semicolon at the end thereof;

(iii) in subparagraph (B), by striking `; and' and inserting a period; and

(iv) by striking subparagraph (C).

(3) Section 484A(b)(2) (20 U.S.C. 1091a(b)(2)) is amended by striking `part B of this title' and inserting `part B, D, or E of this title'.

(4) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--

(A) by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively;

(B) by redesignating the paragraph (5) (as added by section 2008 of Public Law 101-239) as paragraph (6); and

(i) by striking `(22 U.S.C. 2501 et seq.)),' and inserting `(22 U.S.C. 2501 et seq.),'; and

(ii) by striking the period at the end thereof and inserting a semicolon.

(5) Section 487A(b) (20 U.S.C. 1094a(b)) is amended--

(A) in paragraph (1)--

(i) by striking `Higher Education Amendments of 1998' and inserting `College Access and Opportunity Act of 2005'; and

(ii) by striking the second sentence;

(B) in paragraph (2)--

(i) by striking `1993 through 1998' and inserting `1998 through 2004';

(ii) by striking `(as such section' and all that follows through `Amendments of 1998)'; and

(iii) by striking `Higher Education Amendments of 1998.' and inserting `College Access and Opportunity Act of 2005.'; and

(i) by striking `Upon the submission' and all that follows through `limited number of additional institutions for voluntary participation' and inserting `The Secretary is authorized to continue the voluntary participation of institutions participating as of July 1, 2005,'; and

(ii) by inserting before the period at the end the following: `, and shall continue the participation of any such institution unless the Secretary determines that such institution's participation has not been successful in carrying out the purposes of this section'.

(6) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding at the end the following new paragraph:

`(3) The appointment of members under subparagraphs (A) and (B) of paragraph (1) shall be effective upon publication of the appointment in the Congressional Record.'.

(7) Section 491(h)(1) (20 U.S.C. 1098(h)(1)) is amended by striking `the rate authorized for GS-18 of the General Schedule' and inserting `the maximum rate payable under section 5376 of such title'.

(8) Section 491(k) (20 U.S.C. 1098(k)) is amended by striking `2004' and inserting `2011'.

(9) Section 493A (20 U.S.C. 1098c) is repealed.

(10) Section 498 (20 U.S.C. 1099c) is amended--

(A) in subsection (c)(2), by striking `for profit,' and inserting `for-profit,'; and

(B) in subsection (d)(1)(B), by inserting `and' after the semicolon at the end thereof.

PART H--PROGRAM INTEGRITY

SEC. 495. ACCREDITATION.

(a) Standards for Accreditation- Section 496(a) (20 U.S.C. 1099b(a)) is amended--

(1) in paragraph (3)--

(A) by inserting `or' after the semicolon at the end of subparagraph (A);

(B) by striking subparagraph (B); and

(2) in paragraph (4)--

(A) by inserting `(A)' after `(4)';

(B) by inserting after `consistently applies and enforces standards' the following: `that consider the stated missions of institutions of higher education, including such missions as inculcation of religious values, and';

(D) by adding at the end the following new subparagraph:

`(B) if such agency or association already has or seeks to include within its scope of recognition the evaluation of the quality of institutions or programs offering distance education, such agency or association shall, in addition to meeting the other requirements of this subpart, demonstrate to the Secretary that--

`(i) the accreditation agency's or association's standards effectively address the quality of an institution's distance education programs in the areas identified in paragraph (5) of this subsection, except that the agency or association shall not be required to have separate standards, procedures, or policies for the evaluation of distance education institutions or programs in order to meet the requirements of this subparagraph; and

`(ii) the agency or association requires that an institution that offers distance education programs to have processes by which it establishes that the student who registers in a distance education course or program is the same student who participates, completes academic work, and receives academic credit;';

(3) in paragraph (5)--

(A) by amending subparagraph (A) to read as follows:

`(A) success with respect to student achievement in relation to the institution's mission, including, as appropriate, consideration of student academic achievement as determined by the institution (in accordance with standards of the accrediting agency or association), retention, course and program completion, State licensing examinations, and job placement rates, and other student performance information selected by the institution, particularly that information used by the institution to evaluate or strengthen its programs;'; and

(B) by amending subparagraph (E) to read as follows:

`(E) fiscal, administrative capacity, as appropriate to the specified scale of operations, and, for an agency or association where its approval for such institution determines eligibility for student assistance under this title, board governance, within the context of the institution's mission;';

(4) by striking paragraph (6) and inserting the following:

`(6) such an agency or association shall establish and apply review procedures throughout the accrediting process, including evaluation and withdrawal proceedings that comply with due process that provides for--

`(A) adequate specification of requirements and deficiencies at the institution of higher education or program being examined;

`(B) an opportunity for a written response by any such institution to be included in the evaluation and withdrawal proceedings;

`(C) upon the written request of an institution, an opportunity for the institution to appeal any adverse action at a hearing prior to such action becoming final before an appeals panel that--

`(i) shall not include current members of the agency or association's underlying decision-making body that made the adverse decision; and

`(ii) is subject to a conflict of interest of policy; and

`(D) the right to representation by counsel for an such institution;'; and

(5) by striking paragraph (8) and inserting the following:

`(8) such agency or association shall make available to the public and submit to the Secretary and the State licensing or authorizing agency, together with the comments of the affected institution, a summary of agency or association actions, involving--

`(A) final denial, withdrawal, suspension, or termination of accreditation; and

`(B) any other final adverse action taken with respect to an institution.'.

(b) Operating Procedures- Section 496(c) (20 U.S.C. 1099b(c)) is amended--

(1) by inserting `(including those regarding distance education)' before the semicolon at the end of paragraph (1);

(2) by striking `and' at the end of paragraph (5);

(3) by striking the period at the end of paragraph (6) and inserting a semicolon; and

(4) by inserting after paragraph (6) the following new paragraphs:

`(7) ensures that its onsite comprehensive reviews for accreditation or reaccreditation include evaluation of the substance of the information required in subparagraph (H) of section 485(a)(1);

`(8) confirms as a part of its review for accreditation or reaccreditation that the institution has transfer policies--

`(A) that are publicly disclosed; and

`(B) that do not deny transfer of credit based solely on the accreditation of the sending institution as long as the association or agency is recognized by the Secretary pursuant to section 496;

`(9) develops a brief summary, available to the public, of final adverse actions in accordance with the requirements of subsection (a)(8);

`(10) monitors the enrollment growth of distance education to ensure that an institution experiencing signficant growth has the capacity to serve its students effectively;

`(11) discloses publicly, on the agency's website or through other similar dissemination--

`(A) a list of the individuals who comprised the evaluation teams during the prior calendar year for each agency or association and the title and institutional affiliation of such individuals, although such list shall not be required to identify those individuals who comprised the evaluation team used for any specific institution;

`(B) a description of the agency's or association's process for selecting, preparing, and evaluating such individuals; and

`(C) any statements related to the accreditation responsibilities of such individuals; and

`(12) reviews the record of student complaints resulting from the student information process described in section 485(a)(1)(J).'.

`(3) The Secretary shall provide an annual report to Congress on the status of any agency or association for which the Secretary has limited, suspended or terminated recognition under this subsection.'.

(d) Program Review and Data- Section 498A(b) (20 U.S.C. 1099c-1(b)) is amended--

(1) by striking `and' at the end of paragraph (4);

(2) by striking the period at the end of paragraph (5) and inserting a semicolon; and

(3) by adding at the end the following new paragraphs:

`(6) provide to the institution adequate opportunity to review and respond to any program review report or audit finding and underlying materials related thereto before any final program review or audit determination is reached;

`(7) review and take into consideration the institution's response in any final program review or audit determination, and include in the final determination--

`(A) a written statement addressing the institution's response and stating the basis for such final determination; and

`(B) a copy of the institution's statement in response, appropriately redacted to protect confidential information;

`(8) maintain and preserve at all times the confidentiality of any program review report or audit finding until the requirements of paragraphs (6) and (7) are met, and until a final program review or audit determination has been issued, except to the extent required to comply with paragraph (5), provided, however, that the Secretary shall promptly disclose any and all program review reports and audit findings to the institution under review; and

`(9) require that the authority to approve or issue any program review report or audit finding, preliminary or otherwise, that contains any finding, determination, or proposed assessment that exceeds or may exceed $500,000 in liabilities shall not be delegated to any official beyond the Chief Operating Officer of Federal Student Aid.'.

SEC. 496. REPORT TO CONGRESS ON PREVENTION OF FRAUD AND ABUSE IN STUDENT FINANCIAL AID PROGRAMS.

Title IV is amended by adding at the end the following new section:

`SEC. 499. REPORT TO CONGRESS ON PREVENTION OF FRAUD AND ABUSE IN STUDENT FINANCIAL AID PROGRAMS.

`(a) Purpose- It is the purpose of this section to require the Secretary to commission a nonpartisan, comprehensive study on the prevention of fraud and abuse in title IV student financial aid programs, and to report the results of such study to Congress.

`(b) Scope of Report- The study under this section shall thoroughly identify and address the following:

`(1) The impact of fraud and abuse in title IV student financial aid programs upon students and taxpayers, and the nature of such fraud and abuse.

`(2) The effectiveness of existing policies and requirements under this Act that were put in place to prevent fraud and abuse in title IV student financial aid programs, and how such policies and requirements should be improved.

`(3) The extent to which existing protections against fraud and abuse under this Act are adequately enforced, and how enforcement should be strengthened.

`(4) Areas in which additional information is needed to assess the effectiveness of current protections and enforcement against fraud and abuse.

`(5) Existing policies and requirements under this Act aimed at fraud and abuse that are ineffective, hinder innovation, or could be eliminated without reducing effectiveness.

`(6) New policies and enforcement, particularly those suited for the current higher education marketplace, needed to protect against fraud and abuse in title IV student financial aid programs.

`(7) The extent to which States are implementing regulations to protect students from fraud and abuse, and whether changes to Federal law will preempt such regulations.

`(c) Report- Not later than December 31, 2007, the Secretary, after an opportunity for both the Secretary and the Inspector General of the Department of Education to review the results of the study, shall transmit to Congress a report on the study conducted under this section. Such report shall--

`(1) include clear and specific recommendations for legislative and regulatory actions that are likely to significantly reduce the fraud and abuse in title IV student financial aid programs identified under subsection (b); and

`(2) include both the Secretary's and the Inspector General's comments on the report.'.

TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. DEFINITIONAL CHANGES.

Section 502(a) (20 U.S.C. 1101a(a)) is amended--

(1) in paragraph (5)--

(A) by inserting `and' after the semicolon at the end of subparagraph (A);

(B) by inserting `at the end of the award year immediately preceding the date of application' after `Hispanic students' in subparagraph (B);

(D) by striking subparagraph (C); and

(2) by striking paragraph (7).

SEC. 502. ASSURANCE OF ENROLLMENT OF NEEDY STUDENTS.

Section 511(c) (20 U.S.C. 1103(c)) is amended--

(1) by striking paragraph (2);

(2) by redesignating paragraphs (3) through (7) as paragraphs (2) through (6); and

(3) by inserting after paragraph (6) as so redesignated the following new paragraph:

`(7) contain such assurances as the Secretary may require that the institution has an enrollment of needy students as required by section 502(b);'.

SEC. 503. ADDITIONAL AMENDMENTS.

Title V is further amended--

(1) in section 502(a)(2)(A) (20 U.S.C. 1101a(a)(2)(A)), by redesignating clauses (v) and (vi) as clauses (vi) and (vii), respectively, and inserting after clause (iv) the following new clause:

`(v) which provides a program of not less than 2 years that is acceptable for full credit toward a bachelor's degree;';

(2) in section 503(b) (20 U.S.C. 1101b(b))--

(A) by amending paragraph (2) to read as follows:

(B) by amending paragraph (12) to read as follows:

`(12) Establishing community outreach programs and collaborative partnerships between Hispanic-serving institutions and local elementary or secondary schools. Such partnerships may include mentoring, tutoring, or other instructional opportunities that will boost student academic achievement and assist elementary and secondary school students in developing the academic skills and the interest to pursue postsecondary education.';

(D) by inserting after paragraph (4) the following:

`(5) Education or counseling services designed to improve the financial literacy and economic literacy of students and, as appropriate, their parents.';

(3) in section 504(a) (20 U.S.C. 1101c(a))--

(A) by striking the following:

`(a) Award Period-

`(1) IN GENERAL- The Secretary' and inserting the following:

`(a) Award Period- The Secretary'; and

(B) by striking paragraph (2); and

(4) in section 514(c) (20 U.S.C. 1103c(c)), by striking `section 505' and inserting `section 504'.

SEC. 504. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.

(a) Establishment of Program- Title V is amended--

(1) by redesignating part B as part C;

(2) by redesignating sections 511 through 518 as sections 521 through 528, respectively; and

(3) by inserting after section 505 (20 U.S.C. 1101d) the following new part:

`PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS

`SEC. 511. 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 that are educating the majority of Hispanic college students and helping large numbers of Hispanic and low-income students complete postsecondary degrees.

`SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY.

`(a) Program Authorized- Subject to the availability of funds appropriated to carry out this part, the Secretary shall award competitive grants to Hispanic-serving institutions determined by the Secretary to be making substantive contributions to graduate educational opportunities for Hispanic students.

`(b) Eligibility- For the purposes of this part, an `eligible institution' means an institution of higher education that--

`(1) is an eligible institution under section 502(a)(2); and

`(2) offers a postbaccalaureate certificate or degree granting program.

`SEC. 513. 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 needy postbaccalaureate students including outreach, academic support services, mentoring, scholarships, fellowships, and other financial assistance to permit the enrollment of such students in postbaccalaureate certificate and degree granting programs.

`(5) Support of faculty exchanges, faculty development, faculty research, curriculum development, and academic instruction.

`(6) Creating or improving facilities for Internet or other distance learning academic instruction capabilities, including purchase or rental of telecommunications technology equipment or services.

`(7) Collaboration with other institutions of higher education to expand postbaccalaureate certificate and degree offerings.

`(8) Other activities proposed in the application submitted pursuant to section 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. 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 determined by the Secretary. Such application shall demonstrate how the grant funds will be used to improve postbaccalaureate education opportunities in programs and professions in which Hispanic Americans are underrepresented.

`(b) Duration- Grants under this part shall be awarded for a period not to exceed 5 years.

`(c) Limitation- The Secretary shall not award more than one grant under this part in any fiscal year to any Hispanic-serving institution.'.

(b) Cooperative Arrangements- Section 524(a) (as redesignated by subsection (a)(2)) (20 U.S.C. 1103c(a)) is amended by inserting `and section 513' after `section 503'.

SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

Subsection (a) of section 528 (as redesignated by section 504(a)(2) of this Act) (20 U.S.C. 1103g) is amended to read as follows:

`(a) Authorizations-

`(1) PART A- There are authorized to be appropriated to carry out part A and part C of this title $96,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years.

`(2) PART B- There are authorized to be appropriated to carry out part B of this title $59,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years.'.

TITLE VI--TITLE VI AMENDMENTS

SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.

(a) Findings and Purposes- Section 601 (20 U.S.C. 1121) is amended--

(1) in subsection (a)--

(A) by striking `post-Cold War' in paragraph (3);

(B) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and

`(4) The events and aftermath of September 11, 2001, have underscored the need for the Nation to strengthen and enhance American knowledge of international relations, world regions, and foreign languages. Homeland security and effective United States engagement abroad depend upon an increased number of Americans who have received such training and are willing to serve their Nation.';

(2) in subsection (b)(1)--

(A) by striking `; and' at the end of subparagraph (D) and inserting `, including through linkages overseas with institutions of higher education and relevant organizations that contribute to the educational programs assisted under this part;';

(B) by inserting `and' after the semicolon at the end of subparagraph (E);

`(F) to assist the national effort to educate and train citizens to participate in the efforts of homeland security;'; and

(3) in subsection (b)(3)--

(A) by inserting `reinforce and' before `coordinate'; and

(B) by inserting `, and international business and trade competitiveness' before the period.

(b) Graduate and Undergraduate Language and Area Centers and Programs- Section 602(a) (20 U.S.C. 1122(a)) is amended--

(1) in paragraph (1), by striking subparagraph (A) and inserting the following:

`(A) IN 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.';

(2) in paragraph (2)--

(A) by striking `and' at the end of subparagraph (G);

(B) by striking the period at the end of subparagraph (H) and inserting a semicolon; and

`(I) supporting instructors of the less commonly taught languages;

`(J) widely disseminating materials developed by the center or program to local educational agencies and public and private elementary and secondary education schools, and institutions of higher education, presented from diverse perspectives and reflective of a wide range of views on the subject matter, except that no more than 50 percent of funds awarded to an institution of higher education or consortia of such institutions for purposes under this title may be associated with the costs of dissemination; and

`(K) projects that support in students an understanding of science and technology in coordination with foreign language proficiency.'; and

(3) in paragraph (4)--

(A) by amending subparagraph (B) to read as follows:

`(B) Partnerships or programs of linkage and outreach with 2-year and 4-year colleges and universities, including colleges of education and teacher professional development programs.';

(B) in subparagraph (C), by striking `Programs of linkage or outreach' and inserting `Partnerships or programs of linkage and outreach';

(i) by striking `foreign area' and inserting `area studies';

(ii) by striking `of linkage and outreach'; and

(iii) by striking `(C), and (D)' and inserting `(D), and (E)';

(D) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (D), (E), and (F), respectively; and

(E) by inserting after subparagraph (B) the following new subparagraph:

`(C) Partnerships with local educational agencies and public and private elementary and secondary education schools that are designed to increase student academic achievement in foreign language and knowledge of world regions, and to facilitate the wide dissemination of materials related to area studies, foreign languages, and international studies that are reflective of a wide range of views on the subject matter.'.

(c) 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'.

(d) 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)(ii), by striking `teacher training' and inserting `teacher professional development';

(B) by redesignating subparagraphs (I) through (M) as subparagraphs (J) through (N), respectively;

`(I) the provision of grants for educational programs abroad that are closely linked to the program's overall goals and have the purpose of promoting foreign language fluency and knowledge of world regions, except that not more than 10 percent of a grant recipient's funds may be used for this purpose;'; and

(D) in subparagraph (M)(ii) (as redesignated by subparagraph (B) of this paragraph), by striking `elementary and secondary education institutions' and inserting `local educational agencies and public and private elementary and secondary education schools';

(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)(8), by striking `may' and inserting `shall'; and

(6) by striking subsection (c).

(e) Research; Studies; Annual Report- Section 605(a) (20 U.S.C. 1125(a)) is amended by inserting before the period at the end of the first sentence the following: `, including the systematic collection, analysis, and dissemination of data'.

(f) 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 `museums, or consortia of such entities';

(B) by striking `new'; and

(2) in subsection (b)--

(A) by inserting `acquire and' before `facilitate access' in paragraph (1);

(B) by striking `new means of' in paragraph (3) and inserting `new means and standards for';

(D) by striking the period at the end of paragraph (7) and by inserting a semicolon; and

(E) by inserting after paragraph (7) the following new paragraphs:

`(8) to establish linkages between grant recipients under subsection (a) with libraries, museums, organizations, or institutions of higher education located overseas to facilitate carrying out the purposes of this section; and

`(9) to carry out other activities deemed by the Secretary to be consistent with the purposes of this section.'; and

(3) by adding at the end the following new subsection:

`(e) Special Rule- The Secretary may waive or reduce the required non-Federal share 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.'.

(g) Selection of Grant Recipients- Section 607(b) (20 U.S.C. 1127(b)) is amended--

(1) by striking `objectives' and inserting `missions'; and

(2) by adding at the end the following new sentence: `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 interests, generate and disseminate information, and foster debate on international issues from diverse perspectives.'.

(h) Equitable Distribution- Section 608(a) (20 U.S.C. 1128(a)) is amended by adding at the end the following new sentence: `Grants made under section 602 shall also reflect the purposes of this part.'.

(i) Authorization of Appropriations- Section 610 (20 U.S.C. 1128b) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding' and inserting `5 succeeding'.

(j) Conforming Amendments-

(1) 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'.

(2) Section 612 (20 U.S.C. 1130-1) is amended by striking `combination' each place it appears and inserting `consortium'.

SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.

(a) Centers for International Business Education- Section 612 (20 U.S.C. 1130-1) is amended--

(1) in subsection (c)(1)(D), 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'; and

(2) in subsection (e), by adding at the end the following new paragraph:

`(5) SPECIAL RULE- The Secretary may waive or reduce the required non-Federal share for institutions that--

`(A) are eligible to receive assistance under part A or B of title III or under title V; and

`(B) have submitted a grant application under this section that demonstrates a need for a waiver or reduction.'.

(b) Education and Training Programs- Section 613 (20 U.S.C. 1130a) is amended by adding at the end the following new subsection:

`(e) Special Rule- The Secretary may waive or reduce the required non-Federal share 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.'.

(1) by striking `1999' each place it appears and inserting `2006'; and

(2) by striking `4 succeeding' each place it appears and inserting `5 succeeding'.

SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.

(a) Foreign Service Professional Development- Section 621 (20 U.S.C. 1131) is amended--

(1) by striking the heading of such section and inserting the following:

`SEC. 621. PROGRAM FOR FOREIGN SERVICE PROFESSIONALS.';

(2) by striking the second sentence of subsection (a) and inserting the following: `The Institute shall conduct a program to enhance the international competitiveness of the United 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.'; and

(3) in subsection (b)(1), by striking subparagraphs (A) and (B) and inserting the following:

`(A) A Tribally Controlled College or University or Alaska Native or Native Hawaiian-serving institution eligible for assistance under title III, an institution eligible for assistance under part B of title III, or a Hispanic-serving institution eligible for assistance under title V.

`(B) An institution of higher education which serves substantial numbers of underrepresented students.'.

(b) Institutional Development- Section 622 (20 U.S.C. 1131-1) is amended by inserting before the period at the end of subsection (a) the following: `and promote collaboration with colleges and universities that receive funds under this title'.

(c) Study Abroad Program- Section 623(a) (20 U.S.C. 1131a(a)) is amended by inserting after `1978,' the following: `Alaska Native-serving, Native Hawaiian-serving, and Hispanic-serving institutions,'.

(d) Advanced Degree in International Relations- Section 624 (20 U.S.C. 1131b) is amended--

MASTERS

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'.

(e) Internships- Section 625 (20 U.S.C. 1131c) is amended--

(1) in subsection (a), by inserting after `1978,' the following: `Alaska Native-serving, Native Hawaiian-serving, and Hispanic-serving institutions,';

(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

(3) by amending subsection (c) to read as follows:

`(c) Ralph J. Bunche Fellows- In order to assure the recognition and commitment of individuals from underrepresented student populations who demonstrate special interest in international affairs and language study, eligible students who participate in the internship programs authorized under (a) and (b) shall be known as the `Ralph J. Bunche Fellows'.'.

(f) Report- Section 626 (20 U.S.C. 1131d) is amended by striking `annually prepare a report' and inserting `prepare a report biennially'.

(g) Authorization of Appropriations- Section 628 (20 U.S.C. 1131f) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding' and inserting `5 succeeding'.

SEC. 604. EVALUATION, OUTREACH, AND DISSEMINATION.

Part D of title VI is amended by inserting after section 631 (20 U.S.C. 1132) the following new section:

`SEC. 632. EVALUATION, OUTREACH, AND DISSEMINATION.

`The Secretary may use not more than one percent of the funds made available for this title for program evaluation, national outreach, and information dissemination activities.'.

SEC. 605. ADVISORY BOARD.

Part D of title VI is amended by inserting after section 632 (as added by section 604) the following new section:

`SEC. 633. INTERNATIONAL HIGHER EDUCATION ADVISORY BOARD.

`(a) Establishment and Purpose-

`(1) ESTABLISHMENT- There is established in the Department an independent International Higher Education Advisory Board (hereafter in this section referred to as the `International Advisory Board'). The International Advisory Board shall provide advice, counsel, and recommendations to the Secretary and the Congress on international education issues for higher education.

`(2) PURPOSE- The purpose of the International Advisory Board is--

`(A) to provide expertise in the area of national needs for proficiency in world regions, foreign languages, international affairs, and international business;

`(B) to make recommendations that will promote the excellence of international education programs and result in the growth and development of such programs at the postsecondary education level that will reflect diverse perspectives and a wide range of views on world regions, foreign language, international affairs, and international business; and

`(C) to advise the Secretary and the Congress with respect to needs for expertise in government, the private sector, and education in order to enhance America's understanding of, and engagement in, the world.

`(b) Independence of International Advisory Board- In the exercise of its functions, powers, and duties, the International Advisory Board shall be independent of the Secretary and the other offices and officers of the Department. Except as provided in this subsection and subsection (f), the recommendations of the International Advisory Board shall not be subject to review or approval by any officer of the Federal Government. Nothing in this title shall be construed to authorize the International Advisory Board to mandate, direct, or control an institution of higher education's specific instructional content, curriculum, or program of instruction or instructor. The International Advisory Board is authorized to assess a sample of activities supported under this title, using materials that have been submitted to the Department of Education by grant recipients under this title, in order to provide recommendations to the Secretary and the Congress for the improvement of programs under the title and to ensure programs meet the purposes of the title to promote the study of and expertise in foreign language and world regions, especially with respect to diplomacy, national security, and international business and trade competitiveness. The recommendations of the International Advisory Board may address any area in need of improvement, except that any recommendation of specific legislation to Congress shall be made only if the President deems it necessary and expedient.

`(c) Membership-

`(1) APPOINTMENT- The International Advisory Board shall have 7 members of whom--

`(A) 3 members shall be appointed by the Secretary;

`(B) 2 members shall be appointed by the Speaker of the House of Representatives, upon the recommendation of the Majority Leader and the Minority Leader; and

`(C) 2 members shall be appointed by the President pro tempore of the Senate, upon the recommendation of the Majority Leader and the Minority Leader.

`(2) REPRESENTATION- Two of the members appointed by the Secretary under paragraph (1)(A) shall be appointed to represent Federal agencies that have diplomacy, national security, international commerce, or other international activity responsibilities, after consultation with the heads of such agencies. The members of the International Advisory Board shall also include (but not be limited to) persons with international expertise representing States, institutions of higher education, cultural organizations, educational organizations, international business, local education agencies, students, and private citizens with expertise in international concerns.

`(3) QUALIFICATION- Members of the International Advisory Board shall be individuals who have technical qualifications, professional standing, experience working in international affairs or foreign service or international business occupations, or demonstrated knowledge in the fields of higher education and international education, including foreign languages, world regions, or international affairs.

`(d) Functions of the International Advisory Board-

`(1) IN GENERAL- The International Advisory Board shall provide recommendations in accordance with subsection (b) regarding improvement of programs under this title to the Secretary and the Congress for their review. The International Advisory Board may--

`(A) review and comment upon the regulations for grants under this title;

`(B) assess a sample of activities supported under this title based on the purposes and objectives of this title, using materials that have been submitted to the Department of Education by grant recipients under this title, in order to provide recommendations for improvement of the programs under this title;

`(C) make recommendations that will assist the Secretary and the Congress to improve the programs under this title to better reflect the national needs related to foreign languages, world regions, diplomacy, national security, and international business and trade competitiveness, including an assessment of the national needs and the training provided by the institutions of higher education that receive a grant under this title for expert and non-expert level foreign language training;

`(D) make recommendations to the Secretary and the Congress regarding such studies, surveys, and analyses of international education that will provide feedback about the programs under this title and assure that their relative authorized activities reflect diverse perspectives and a wide range of views on world regions, foreign languages, diplomacy, national security, and international business and trade competitiveness;

`(E) make recommendations that will strengthen the partnerships between local educational agencies, public and private elementary and secondary education schools, and grant recipients under this title to ensure that the research and knowledge about world regions, foreign languages, and international affairs is widely disseminated to local educational agencies;

`(F) make recommendations on how institutions of higher education that receive a grant under this title can encourage students to serve the Nation and meet national needs in an international affairs, international business, foreign language, or national security capacity;

`(G) make recommendations on how linkages between institutions of higher education and public and private organizations that are involved in international education, international business and trade competitiveness, language training, and international research capacities may fulfill the manpower and information needs of United States businesses; and

`(H) make recommendations to the Secretary and the Congress about opportunities for underrepresented populations in the areas of foreign language study, diplomacy, international business and trade competitiveness, and international economics, in order to effectively carry out the activities of the Institute under part C.

`(2) HEARINGS- The International Advisory Board shall provide for public hearing and comment regarding the matter contained in the recommendations described in paragraph (1), prior to the submission of those recommendations to the Secretary and the Congress.

`(e) Operations of the Committee-

`(1) TERMS- Each member of the International Advisory Board shall be appointed for a term of 3 years, except that, of the members first appointed (A) 4 shall be appointed for a term of 3 years, and (B) 3 shall be appointed for a term of 4 years, as designated at the time of appointment by the Secretary. A member of the International Advisory Board may be reappointed to successive terms on the International Advisory Board.

`(2) VACANCIES- Any member appointed to fill a vacancy occurring prior to the expiration of the term of a predecessor shall be appointed only for the remainder of such term. A member of the International Advisory Board shall, upon the Secretary's request, continue to serve after the expiration of a term until a successor has been appointed.

`(3) NO GOVERNMENTAL MEMBERS- Except for the members appointed by the Secretary under subsection (c)(1)(A), no officers or full-time employees of the Federal Government shall serve as members of the International Advisory Board.

`(4) MEETINGS- The International Advisory Board shall meet not less than once each year. The International Advisory Board shall hold additional meetings at the call of the Chair or upon the written request of not less than 3 voting members of the International Advisory Board.

`(5) QUORUM- A majority of the voting members of the International Advisory Board serving at the time of a meeting shall constitute a quorum.

`(6) CHAIR- The International Advisory Board shall elect a Chairman or Chairwoman from among the members of the International Advisory Board.

`(f) Submission to Department for Comment- The International Advisory Board shall submit its proposed recommendations to the Secretary of Education for comment for a period not to exceed 30 days in each instance.

`(g) Personnel and Resources-

`(1) COMPENSATION AND EXPENSE- Members of the International Advisory Board shall serve without pay for such service. Members of the International Advisory Board who are officers or employees of the United States may not receive additional pay, allowances, or benefits by reason of their service on the International Advisory Board. Members of the International Advisory Board may each receive reimbursement for travel expenses incident to attending International Advisory Board meetings, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently.

`(2) PERSONNEL- The International Advisory Board may appoint such personnel as may be determined necessary by the Chairman without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, but no individual so appointed shall be paid in excess of the maximum rate payable under section 5376 of such title. The International Advisory Board may appoint not more than one full-time equivalent, nonpermanent, consultant without regard to the provisions of title 5, United States Code. The International Advisory Board shall not be required by the Secretary to reduce personnel to meet agency personnel reduction goals.

`(3) CONSULTATION- In carrying out its duties under the Act, the International Advisory Board shall consult with other Federal agencies, representatives of State and local governments, and private organizations to the extent feasible.

`(4) ASSISTANCE FROM OTHER AGENCIES-

`(A) INFORMATION- The International Advisory Board is authorized to secure directly from any executive department, bureau, agency, board, commission, office, independent establishment, or instrumentality information, suggestions, estimates, and statistics for the purpose of this section and each such department, bureau, agency, board, commission, office, independent establishment, or instrumentality is authorized and directed, to the extent permitted by law, to furnish such information, suggestions, estimates, and statistics directly to the International Advisory Board, upon request made by the Chairman for the purpose of providing expertise in the area of national needs for the proficiency in world regions, foreign languages, and international affairs.

`(B) SERVICES AND PERSONNEL- The head of each Federal agency shall, to the extent not prohibited by law, consult with the International Advisory Board in carrying out this section. The International Advisory Board is authorized to utilize, with their consent, the services, personnel, information, and facilities of other Federal, State, local, and private agencies with or without reimbursement, for the purpose of providing expertise in the area of national needs for the proficiency in world regions, foreign languages, and international affairs.

`(5) CONTRACTS; EXPERTS AND CONSULTANTS- The International Advisory Board may enter into contracts for the acquisition of information, suggestions, estimates, and statistics for the purpose of this section. The International Advisory Board is authorized to obtain the services of experts and consultants without regard to section 3109 of title 5, United States Code and to set pay in accordance with such section.

`(h) Termination- Notwithstanding the sunset and charter provisions of the Federal Advisory Committee Act (5 U.S.C. App. I) or any other statute or regulation, the International Advisory Board shall be authorized through September 30, 2012.

`(i) Funds- The Secretary shall use not more than one-half of the funds available to the Secretary under section 632 to carry out this section.'.

SEC. 606. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING INFORMATION; SAFETY.

Part D of title VI is amended by inserting after section 633 (as added by section 605) the following new sections:

`SEC. 634. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING INFORMATION.

`Each institution of higher education that receives a grant under this title shall assure that--

`(1) recruiters of the United States Government and agencies thereof are given the same access to students as is provided generally to other institutions of higher education and prospective employers of those students for the purpose of recruiting for graduate opportunities or prospective employment; and

`(2) no undue restrictions are placed upon students that seek employment with the United States Government or any agency thereof.

`SEC. 635. STUDENT SAFETY.

`Applicants seeking funds under this title to support student travel and study abroad shall submit as part of their grant application a description of safety policies and procedures for students participating in the program while abroad.'.

SEC. 607. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.

Part D of title VI is further amended by inserting after section 635 (as added by section 606) the following new section:

`SEC. 636. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.

`(a) Study- The Secretary of Education, in consultation with the International Advisory Board, shall conduct a study to identify foreign language heritage communities, particularly such communities that include speakers of languages that are critical to the national security of the United States.

`(b) Foreign Language Heritage Community- For purposes of this section, the term `foreign language heritage community' means a community of residents or citizens of the United States who are native speakers of, or who have partial fluency in, a foreign language.

`(c) Report- Not later than one year after the date of the enactment of this Act, the Secretary of Education shall submit a report to the Congress on the results of the study conducted under this section.'.

TITLE VII--TITLE VII AMENDMENTS

SEC. 701. JAVITS FELLOWSHIP PROGRAM.

(a) Authority and Timing of Awards- Section 701(a) (20 U.S.C. 1132a(a)) is amended by inserting after the second sentence the following: `For purposes of the exception in the preceding sentence, a master's degree in fine arts shall be considered a terminal degree.'.

(b) 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 not more than 12 months (in any other case), but without payment of the stipend.'.

(1) in the first sentence, by inserting `from diverse geographic regions' after `higher education'; and

(2) by adding at the end the following new sentence: `The Secretary shall also assure that at least one representative appointed to the Board represents an institution that is eligible for a grant under title III or V of this Act.'.

(d) Stipends- Section 703 (20 U.S.C. 1134b(a)) is amended--

(1) in subsection (a)--

(A) by striking `1999-2000' and inserting `2006-2007';

(B) by striking `shall be set' and inserting `may be set'; and

(C) by striking `Foundation graduate fellowships' and inserting `Foundation Graduate Research Fellowship Program on February 1 of such academic year'; and

(2) in subsection (b), by amending paragraph (1)(A) to read as follows:

`(1) IN GENERAL- (A) 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 2006-2007 and succeeding academic years, the same amount as the institutional payment made for 2005-2006 adjusted for 2006-2007 and annually thereafter in accordance with inflation as determined by the Department of Labor's Consumer Price Index for All Urban Consumers for the previous calendar year.'.

(e) Authorization of Appropriations- Section 705 (20 U.S.C. 1134d) is amended by striking `fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years' and inserting `fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years'.

SEC. 702. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

(a) Designation of Areas of National Need; Priority- Section 712 (20 U.S.C. 1135a) is amended--

(1) in the last sentence of subsection (b)--

(A) by striking `and an assessment' and inserting `an assessment'; and

(B) by inserting before the period at the end the following: `, and the priority described in subsection (c) of this section'; and

(2) by adding at the end the following new subsection:

`(c) Priority- The Secretary shall establish a priority for grants in order to prepare individuals for the professoriate who will train highly-qualified elementary and secondary math and science teachers, special education teachers, and teachers who provide instruction for limited English proficient individuals. Such grants shall offer program assistance and graduate fellowships for--

`(1) post-baccalaureate study related to teacher preparation and pedagogy in math and science for students who have completed a master's degree or are pursuing a doctorate of philosophy in math and science;

`(2) post-baccalaureate study related to teacher preparation and pedagogy in special education and English language acquisition and academic proficiency for limited English proficient individuals; and

`(3) support of dissertation research in the fields of math, science, special education, or second language pedagogy and second language acquisition.'.

(b) Collaboration Required for Certain Applications- Section 713(b) (20 U.S.C. 1135b) is amended--

(1) by striking `and' at the end of paragraph (9);

(2) by redesignating paragraph (10) as paragraph (11); and

(3) by inserting after paragraph (9) the following new paragraph:

`(10) in the case of an application for a grant by a department, program, or unit in education or teacher preparation, contain assurances that such department, program, or unit collaborates with departments, programs, or units in all content areas to assure a successful combination of training in both teaching and such content; and'.

(1) by striking `1999-2000' and inserting `2006-2007';

(2) by striking `shall be set' and inserting `may be set'; and

(3) by striking `Foundation graduate fellowships' and inserting `Foundation Graduate Research Fellowship Program on February 1 of such academic year'.

(d) Additional Assistance- Section 715(a)(1) (20 U.S.C. 1135d(a)(1)) is amended--

(1) by striking `1999-2000' and inserting `2006-2007';

(2) by striking `1998-1999' and inserting `2005-2006'; and

(3) by inserting `for All Urban Consumers' after `Price Index'.

(e) Authorization of Appropriations- Section 716 (20 U.S.C. 1135e) is amended by striking `fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years' and inserting `fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years'.

(f) Technical Amendments- Section 714(c) (20 U.S.C. 1135c(c)) is amended--

(1) by striking `section 716(a)' and inserting `section 715(a)'; and

(2) by striking `section 714(b)(2)' and inserting `section 713(b)(2)'.

SEC. 703. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

(a) Contract and Grant Purposes- Section 721(c) (20 U.S.C. 1136(c)) is amended--

(1) by amending paragraph (2) to read as follows:

`(2) to prepare such students for study at accredited law schools and assist them with the development of analytical skills and study methods to enhance their success and promote completion of law school;';

(2) by striking `and' at the end of paragraph (4);

(3) by striking the period at the end of paragraph (5) and inserting `; and'; and

(4) by adding at the end the following new paragraph:

`(6) to award Thurgood Marshall Fellowships to eligible law school students--

`(A) who participated in summer institutes authorized by subsection (d) and who are enrolled in an accredited law school; or

`(B) who are eligible law school students who have successfully completed a comparable summer institute program certified by the Council on Legal Educational Opportunity.'.

(b) Services Provided- Section 721(d)(1)(D) (20 U.S.C. 1136(d)(1)(D)) is amended by inserting `in analytical skills and study methods' after `courses'.

(c) Authorization of Appropriations- Section 721(h) (20 U.S.C. 1136(h)) is amended by striking `1999 and each of the 4 succeeding fiscal years' and inserting `2006 and each of the 5 succeeding fiscal years'.

(d) General Provisions- Subsection (e) of section 731 (20 U.S.C. 1137(e)) is repealed.

SEC. 704. 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 amending paragraph (1) to read as follows:

`(1) the encouragement of the reform and improvement of, and innovation in, postsecondary education and the provision of educational opportunity for all, especially for the non-traditional student populations;';

(2) in paragraph (2), by inserting before the semicolon at the end the following: `for postsecondary students, especially institutions, programs, and joint efforts that provide academic credit for programs';

(3) by amending paragraph (3) to read as follows:

`(3) the establishment of institutions and programs based on the technology of communications, including delivery by distance education;';

(4) by amending paragraph (6) to read as follows:

`(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;';

(5) by striking `and' at the end of paragraph (7);

(6) by striking the period at the end of paragraph (8) and inserting a semicolon; and

(7) by adding at the end the following new paragraphs:

`(9) the provision of support and assistance to programs implementing integrated education reform services in order to improve secondary school graduation and college attendance and completion rates for disadvantaged students, and to programs that reduce postsecondary remediation rates, and improve degree attainment rates, for low-income students and former high school dropouts; and

`(10) the assessment, in partnership with a public or private nonprofit institution or agency, of the performance of teacher preparation programs within institutions of higher education in a State, using an assessment which provides comparisons across such schools within the State based upon indicators including teacher candidate knowledge in subject areas in which such candidate has been prepared to teach. '.

(b) Prohibition- Section 741 (20 U.S.C. 1138) is further amended by adding at the end the following new subsection:

`(c) Prohibition- No funds made available under this part may be used to provide financial assistance to students who do not meet the requirements of section 484(a)(5).'.

(1) by amending paragraph (2) to read as follows:

`(2)(A) Development of partnerships between local educational agencies and institutions of higher education to establish or expand existing dual enrollment programs at institutions of higher education that allow high school students to earn high school and transferable college credit.

`(B) Development of consortia of institutions of higher education to create dual enrollment programs including academic and student support agreements and comprehensive articulation agreements that would allow for the seamless and timeless acquisition of college credits and the transfer of postsecondary academic credits between such institutions, particularly from 2-year to 4-year institutions of higher education.'; and

(2) by striking paragraph (4) and inserting the following:

`(4) International cooperation, partnerships, or student exchange among postsecondary educational institutions in the United States and abroad.

`(5) Establishment of academic programs including graduate and undergraduate courses, seminars and lectures, support of research, and development of teaching materials for the purpose of supporting faculty and academic programs that teach traditional American history (including significant constitutional, political, intellectual, economic, diplomatic, and foreign policy trends, issues, and documents; the history, nature, and development of democratic institutions of which American democracy is a part; and significant events and individuals in the history of the United States).

`(6) Support for planning, applied research, training, resource exchanges or technology transfers, the delivery of services, or other activities the purpose of which is to design and implement programs to enable institutions of higher education to work with private and civic organizations to assist communities to meet and address their pressing and severe problems, including economic development, community infrastructure and housing, crime prevention, education, healthcare, self-sufficiency, and workforce preparation. Such activities may include support for the development of coordinated curriculum and internship opportunities for students in disadvantaged communities.'.

(d) Authorization of Appropriations- Section 745 (20 U.S.C. 1138d) is amended by striking `$30,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years' and inserting `$40,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years' .

SEC. 705. URBAN COMMUNITY SERVICE.

Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.

SEC. 706. DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH DISABILITIES RECEIVE A QUALITY HIGHER EDUCATION.

(a) Serving All Students With Disabilities- Section 762(a) (20 U.S.C. 1140a(a)) is amended by striking `students with learning disabilities' and inserting `students with disabilities'.

(b) Authorized Activities-

(1) AMENDMENT- Section 762(b)(2) is amended--

(A) in subparagraph (A), by inserting `in order to improve retention and completion' after `disabilities';

(B) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (E), respectively;

`(B) EFFECTIVE TRANSITION PRACTICES- The development of innovative, effective, and efficient teaching methods and strategies to ensure the smooth transition of students with disabilities from high school to postsecondary education.'; and

(D) by inserting after subparagraph (C) (as redesignated by subparagraph (B) of this paragraph) the following new subparagraph:

`(D) DISTANCE LEARNING- The development of innovative, effective, and efficient teaching methods and strategies to provide faculty and administrators with the ability to provide accessible distance education programs or classes that would enhance access of students with disabilities to higher education, including the use of electronic communication for instruction and advisement.'.

(2) CONFORMING AMENDMENT- Section 762(b)(3) is amended by striking `subparagraphs (A) through (C)' and inserting `subparagraphs (A) through (E)'.

(1) by amending paragraph (1) to read as follows:

`(1) a description of how such institution plans to address the activities allowed under this part;';

(2) by striking `and' at the end of paragraph (2);

(3) by striking the period at the end of paragraph (3) and inserting `; and'; and

(4) by adding at the end the following new paragraph:

`(4) a description of the extent to which an institution will work to replicate the best practices of institutions of higher education with demonstrated success in serving students with disabilities.'.

(d) Authorization of Appropriations- Section 765 (20 U.S.C. 1140d) is amended by striking `fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years' and inserting `fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years'.

TITLE VIII--CLERICAL AMENDMENTS

SEC. 801. CLERICAL AMENDMENTS.

(a) Definition- Section 103 (20 U.S.C. 1003) (as amended by section 102) is further amended--

(1) by redesignating paragraphs (1) through (16) as paragraphs (2) through (17), respectively; and

(2) by inserting before paragraph (2) (as so redesignated) the following new paragraph:

`(1) AUTHORIZING COMMITTEES- The term `authorizing committees' means the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives.'.

(b) Committees-

(1) The following provisions are each 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 `authorizing committees':

(A) Section 428(g) (20 U.S.C. 1078(g)).

(B) Section 428A(a)(3) (20 U.S.C. 1078-1(a)(3)), as redesignated by section 430(e)(4).

(D) Section 428A(c)(5) (20 U.S.C. 1078-1(c)(5)).

(E) Section 455(b)(7)(B) (20 U.S.C. 1087e(b)(7)(B)), as redesignated by section 423(b)(3).

(F) Section 483(c) (20 U.S.C. 1090(c)).

(G) Section 486(e) (20 U.S.C. 1093(e)).

(H) Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).

(I) Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).

(J) Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).

(K) Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).

(L) Section 487A(b)(3)(B) (20 U.S.C. 1094a(b)(3)(B)).

(M) Section 498B(d)(1) (20 U.S.C. 1099c-2(d)(1)).

(N) Section 498B(d)(2) (20 U.S.C. 1099c-2(d)(2)).

(2) The following provisions are each 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 `authorizing committees':

(A) Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).

(B) Section 428(n)(4) (20 U.S.C. 1078(n)(4)).

(D) Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).

(E) Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).

(3) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by striking `Committee on Appropriations and the Committee on Labor and Human Resources of the Senate and the Committee on Appropriations and the Committee on Education and the Workforce of the House of Representatives' and inserting `Committees on Appropriations of the Senate and House of Representatives and the authorizing committees'.

(4) Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is amended by striking `House Committee on Education and the Workforce and the Senate Committee on Labor and Human Resources' and inserting `authorizing committees'.

(5) Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is amended by striking `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'.

(6) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087-2(d)(1)(E)(iii)) is amended by striking `Chairman and the Ranking Member on the Committee on Labor and Human Resources of the Senate and the Chairman and the Ranking Member of the Committee on Education and Labor of the House of Representatives' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(7) Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C. 1087-2(r)) are each amended by striking `Chairman and ranking minority member of the Committee on Labor and Human Resources of the Senate, the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives,' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(8) Paragraphs (5)(B) and (10) of section 439(r) (20 U.S.C. 1087-2(r)) are each amended by striking `Chairman and ranking minority member of the Senate Committee on Labor and Human Resources and to the Chairman and ranking minority member of the House Committee on Education and Labor' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(9) Section 439(r)(6)(B) (20 U.S.C. 1087-2(r)(6)(B)) is amended by striking `Chairman and ranking minority member of the Committee on Labor and Human Resources of the Senate and to the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(10) Section 439(s)(2)(A) (20 U.S.C. 1087-2(s)(2)(A)) is amended by striking `Chairman and Ranking Member of the Committee on Labor and Human Resources of the Senate and the Chairman and Ranking Member of the Committee on Economic and Educational Opportunities of the House of Representatives' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(11) Section 439(s)(2)(B) (20 U.S.C. 1087-2(s)(2)(B)) is amended by striking `Chairman and Ranking Minority Member of the Committee on Labor and Human Resources of the Senate and Chairman and Ranking Minority Member of the Committee on Economic and Educational Opportunities of the House of Representatives' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(12) Section 482(d) (20 U.S.C. 1089(d)) is amended 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'.

(1) Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C. 1075(a)(2)(A)) are each amended by striking `428A or 428B' and inserting `428B or 428H'.

(2) Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is amended by striking `428A or'.

(3) Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C. 1078(b)(1)(B)) are each amended by striking `428A or 428B' and inserting `428B or 428H'.

(4) Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is amended by striking `sections 428A and 428B' and inserting `section 428B or 428H'.

(5) Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is amended by striking `428A, 428B,' and inserting `428B'.

(6) Section 428G(c)(2) (20 U.S.C. 1078-7(c)(2)) is amended by striking `428A' and inserting `428H'.

(7) The heading for section 433(e) (20 U.S.C. 1083(e)) is amended by striking `SLS Loans And'.

(8) Section 433(e) (20 U.S.C. 1083(e)) is amended by striking `428A, 428B,' and inserting `428B'.

(9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended--

(A) by inserting `or' at the end of subparagraph (A);

(B) by striking subparagraph (B); and

(10) Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is amended by striking `428A(d), 428B(d), 428C,' and inserting `428B(d), 428C, 428H,'.

(11) Section 435(m) (20 U.S.C. 1085(m)) is amended--

(A) in paragraph (1)(A), by striking `, 428A,'; and

(B) in paragraph (2)(D), by striking `428A' each place it appears and inserting `428H'.

(12) Section 438(b)(2)(D)(ii) (20 U.S.C. 1087-1(b)(2)(D)(ii)) is amended by striking `division (i) of this subparagraph' and inserting `clause (i) of this subparagraph'.

(13) Section 438(c)(6) (20 U.S.C. 1087-1(c)(6)) is amended--

(A) by striking `SLS AND PLUS' in the heading and inserting `PLUS'; and

(B) by striking `428A or'.

(14) Section 438(c)(7) (20 U.S.C. 1087-1(c)(7)) is amended by striking `428A or'.

(15) Nothing in the amendments made by this subsection shall be construed to alter the terms, conditions, and benefits applicable to Federal supplemental loans for students (`SLS loans') under section 428A as in effect prior to July 1, 1994 (20 U.S.C. 1078-1).

TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS

PART A--EDUCATION OF THE DEAF ACT OF 1986

SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

(a) General Authority- Section 104(a)(1)(A) of the Education of the Deaf Act of 1986 (20 U.S.C. 4304(a)(1)(A)) is amended by inserting after `maintain and operate' the following: `, at the Laurent Clerc National Deaf Education Center,'.

(b) Administrative Requirements-

(1) IN GENERAL- Section 104(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 4304(b)) is amended--

(A) in the matter preceding subparagraph (A) of paragraph (1), by striking `elementary and secondary education programs' and inserting `Laurent Clerc National Deaf Education Center'; and

(B) in paragraph (2), by striking `elementary and secondary education programs' and inserting `Laurent Clerc National Deaf Education Center'.

(2) ACADEMIC CONTENT STANDARDS, ACHIEVEMENT STANDARDS, AND ASSESSMENTS- Section 104(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 4304(b)) is amended by adding at the end the following new paragraph:

`(5) The University, in consultation with the Secretary and consistent with the mission of the elementary and secondary programs operated at the Laurent Clerc National Deaf Education Center, shall--

`(A) not later than the beginning of the 2007-2008 school year, adopt and implement academic content standards, academic achievement standards, and academic assessments as described in paragraphs (1) and (3) of section 1111(b) of the Elementary and Secondary Education Act of 1965 for such Center;

`(B) develop adequate yearly progress standards for such Center as described in section 1111(b)(2)(C) of such Act; and

`(C) publicly report the results of such assessments, except in such case in which such reporting would not yield statistically reliable information or would reveal personally identifiable information about an individual student.'.

SEC. 902. AUTHORITY.

Section 111 of the Education of the Deaf Act of 1986 (20 U.S.C. 4331) is amended by striking `the institution of higher education with which the Secretary has an agreement under this part' and inserting `the Rochester Institute of Technology'.

SEC. 903. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

(a) General Authority- Section 112(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4332(a)) is amended--

(1) in paragraph (1)--

(A) in the first sentence--

(i) by striking `an institution of higher education' and inserting `the Rochester Institute of Technology, Rochester, New York,'; and

(ii) by striking `of a' and inserting `of the'; and

(B) by striking the second sentence; and

(2) in paragraph (2)--

(A) in the matter preceding subparagraph (A), by striking `the institution of higher education with which the Secretary has an agreement under this section' and inserting `the Rochester Institute of Technology'; and

(B) in subparagraph (B), by striking `the institution' and inserting `the Rochester Institute of Technology'.

(b) Provisions of Agreement- Section 112(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 4332(b)) is amended--

(1) in paragraph (2), by striking `or other governing body of the institution' and inserting `of the Rochester Institute of Technology'; and

(2) in paragraph (3)--

(A) by striking `or other governing body of the institution' and inserting `of the Rochester Institute of Technology';

(B) by striking `the institution of higher education under the agreement with the Secretary' and inserting `the Rochester Institute of Technology by the National Technical Institute for the Deaf'; and

(C) by striking `Committee on Education and Labor of the House of Representatives and to the Committee on Labor and Human Resources of the Senate' and inserting `Committee on Education and the Workforce of the House of Representatives and to the Committee on Health, Education, Labor, and Pensions of the Senate'.

(c) Limitation- Section 112(c) of the Education of the Deaf Act of 1986 (20 U.S.C. 4332(c)) is amended in paragraphs (1) and (2) by striking `institution' each place it appears and inserting `Rochester Institute of Technology'.

SEC. 904. DEFINITIONS.

Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C. 4351) is amended--

(1) by striking paragraph (3);

(2) by redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively; and

(3) by adding at the end the following new paragraph:

`(7) The term `RIT' means the Rochester Institute of Technology.'.

SEC. 905. AUDIT.

(a) Government Accountability Office Authority- Section 203(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(a)) is amended--

(1) in the heading, by striking `General Accounting Office' and inserting `Government Accountability Office'; and

(2) in the matter following paragraph (2), by striking `General Accounting Office' and inserting `Government Accountability Office'.

(b) Independent Financial and Compliance Audit- Section 203(b)(1) of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(1)) is amended by striking the second sentence and inserting the following: `NTID shall have an annual independent financial and compliance audit made of RIT programs and activities, including NTID programs and activities.'.

(c) Compliance- Section 203(b)(2) of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(2)) is amended by striking `sections' and all that follows through `section 207' and inserting `sections 102(b), 105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c) through (f) of section 207'.

(d) Submission of Audits- Section 203(b)(3) of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(3)) is amended--

(1) by inserting after `Secretary' the following: `and the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate'; and

(2) by striking `or the institution authorized to establish and operate the NTID under section 112(a)' and inserting `or RIT'.

(e) Limitations Regarding Expenditure of Funds- Section 203(c)(2)(A) of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(c)(2)(A)) is amended in the fifth sentence by striking `the Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate' and inserting `the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate'.

SEC. 906. REPORTS.

(a) Technical Amendments- Section 204 of the Education of the Deaf Act of 1986 (20 U.S.C. 4354) is amended in the matter preceding paragraph (1)--

(1) by striking `or other governing body of the institution of higher education with which the Secretary has an agreement under section 112' and inserting `of RIT'; and

(2) by striking `Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate' and inserting `Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate'.

(b) Contents of Report- Section 204 of the Education of the Deaf Act of 1986 (20 U.S.C. 4354) is amended--

(1) in paragraph (2)(C), by striking `upon graduation/completion' and inserting `within one year of graduation/completion'; and

(2) in paragraph (3)(B), by striking `of the institution of higher education with which the Secretary has an agreement under section 112, including specific schedules and analyses for all NTID funds, as required under section 203' and inserting `of RIT programs and activities'.

SEC. 907. 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. 908. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

Section 207(a)(2) of the Education of the Deaf Act of 1986 (20 U.S.C. 4357(a)(2)) is amended by striking `or other governing body of the institution of higher education with which the Secretary has an agreement under section 112' and inserting `of RIT'.

SEC. 909. 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--

(1) by striking `the institution of higher education with which the Secretary has an agreement under part B of title I' and inserting `RIT'; and

(2) 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 the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate'.

SEC. 910. AUTHORIZATION OF APPROPRIATIONS.

(a) Monitoring and Evaluation Activities- Section 205(c) of the Education of the Deaf Act of 1986 (20 U.S.C. 4355(c)) is amended by striking `fiscal years 1998 through 2003' and inserting `fiscal years 2006 through 2011'.

(b) 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 in paragraphs (1) and (2) by striking `fiscal years 1998 through 2003' each place it appears and inserting `fiscal years 2006 through 2011'.

(c) General Authorization of Appropriations- Section 212 of the Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--

(1) in the matter preceding paragraph (1) in subsection (a), by striking `fiscal years 1998 through 2003' and inserting `fiscal years 2006 through 2011'; and

(2) in subsection (b), by striking `fiscal years 1998 through 2003' and inserting `fiscal years 2006 through 2011'.

(d) Short Title-

(1) IN GENERAL- The Education of the Deaf Act of 1986 (20 U.S.C. 4301 note) is amended by striking the matter preceding title I and inserting the following:

`SECTION 1. SHORT TITLE.

`This Act may be cited as the `Gallaudet University and National Technical Institute for the Deaf Act'.'.

(2) OTHER REFERENCES- Any reference in a law, regulation, document, or other record of the United States to the Education of the Deaf Act of 1986 shall be deemed to be a reference to the Gallaudet University and National Technical Institute for the Deaf Act.

PART B--ADDITIONAL EDUCATION LAWS

SEC. 921. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SURVIVORS OF VICTIMS OF THE SEPTEMBER 11, 2001, ATTACKS.

(a) Definitions- For purposes of this section:

(1) ELIGIBLE PUBLIC SERVANT- The term `eligible public sesrvant' means an individual who, as determined in accordance with regulations of the Secretary--

(A) served as a police officer, firefighter, other safety or rescue personnel, or as a member of the Armed Forces; and

(B) died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001.

(2) ELIGIBLE VICTIM- The term `eligible victim' means an individual who, as determined in accordance with regulations of the Secretary, died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001.

(3) ELIGIBLE PARENT- The term `eligible parent' means the parent of an eligible victim if--

(A) the parent owes a Federal student loan that is a consolidation loan that was used to repay a PLUS loan incurred on behalf of such eligible victim; or

(B) the parent owes a Federal student loan that is a PLUS loan incurred on behalf of an eligible victim.

(4) SECRETARY- The term `Secretary' means the Secretary of Education.

(5) FEDERAL STUDENT LOAN- The term `Federal student loan' means any loan made, insured, or guaranteed under part B, D, or E of title IV of the Higher Education Act of 1965.

(b) Relief From Indebtedness-

(1) IN GENERAL- The Secretary shall provide for the discharge or cancellation of--

(A) the Federal student loan indebtedness of the spouse of an eligible public servant, as determined in accordance with regulations of the Secretary, including any consolidation loan that was used jointly by the eligible public servant and his or her spouse to repay the Federal student loans of the spouse and the eligible public servant;

(B) the portion incurred on behalf of the eligible victim (other than an eligible public servant), of a Federal student loan that is a consolidation loan that was used jointly by the eligible victim and his or her spouse, as determined in accordance with regulations of the Secretary, to repay the Federal student loans of the eligible victim and his or her spouse;

(C) the portion of the consolidation loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim; and

(D) the PLUS loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim.

(2) METHOD OF DISCHARGE OR CANCELLATION- A loan required to be discharged or canceled under paragraph (1) shall be discharged or canceled by the method used under section 437(a), 455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 (20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is applicable to such loan.

(1) establish procedures for the filing of applications for discharge or cancellation under this section by regulations that shall be prescribed and published within 90 days after the date of enactment of this Act and without regard to the requirements of section 553 of title 5, United States Code; and

(2) take such actions as may be necessary to publicize the availability of discharge or cancellation of Federal student loan indebtedness under this section.

(d) Availability of Funds for Payments- Funds available for the purposes of making payments to lenders in accordance with section 437(a) for the discharge of indebtedness of deceased or disabled individuals shall be available for making payments under section 437(a) to lenders of loans as required by this section.

(e) Applicable to Outstanding Debt- The provisions of this section shall be applied to discharge or cancel only Federal student loans (including consolidation loans) on which amounts were owed on September 11, 2001. Nothing in this section shall be construed to authorize any refunding of any repayment of a loan.

SEC. 922. AMENDMENT TO HIGHER EDUCATION AMENDMENTS OF 1998.

(a) Repeals of Expired and Executed Provisions- The following provisions of the Higher Education Amendments of 1998 are repealed:

(1) STUDY OF MARKET MECHANISMS IN FEDERAL STUDENT LOAN PROGRAMS- Section 801 (20 U.S.C. 1018 note).

(2) STUDY OF FEASIBILITY OF ALTERNATE FINANCIAL INSTRUMENTS FOR DETERMINING LENDER YIELDS- Section 802.

(3) STUDENT RELATED DEBT STUDY- Section 803 (20 U.S.C. 1015 note).

(4) STUDY OF OPPORTUNITIES FOR PARTICIPATION IN ATHLETIC PROGRAMS- Section 805 (20 U.S.C. 1001 note).

(5) COMMUNITY SCHOLARSHIP MOBILIZATION- Part C of title VIII (20 U.S.C. 1070 note).

(6) INCARCERATED YOUTH- Part D of title VIII (20 U.S.C. 1151).

(7) IMPROVING UNITED STATES UNDERSTANDING OF SCIENCE, ENGINEERING, AND TECHNOLOGY IN EAST ASIA- Part F of title VIII (42 U.S.C. 1862 note).

(8) WEB-BASED EDUCATION COMMISSION- Part J of title VIII.

(b) Extensions of Authorizations and Studies-

(1) TRANSFER OF CREDIT- Section 804(b) of such Act (20 U.S.C. 1099b note) is amended--

(A) by striking `one year after the date of enactment of this Act' and inserting `September 30, 2007'; and

(B) by inserting `and policies of institutions of higher education' after `agencies or associations'.

(2) COHORT DEFAULT RATE STUDY- Section 806 of such Act is amended--

(A) in subsection (a), by striking `higher education at which less' and inserting `higher education. The study shall also review the effect of cohort default rates specifically on institutions of higher education at which less'; and

(B) in subsection (c), by striking `September 30, 1999,' and inserting `September 30, 2007,'.

(3) VIOLENCE AGAINST WOMEN- Section 826 of such Act (20 U.S.C. 1152) is amended--

(A) in subsection (g), by striking `for each of the fiscal years 2001 through 2005' and inserting `fiscal year 2006 and each of the 5 succeeding fiscal years'; and

(B) by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.

(4) UNDERGROUND RAILROAD- Subsection (c) of section 841 (20 U.S.C. 1153(c)) is amended to read as follows:

`(c) Authorization of Appropriations- There are authorized to be appropriated to carry out this section $3,000,000 for fiscal year 2006 and such sums as may be necessary for each of the 5 succeeding fiscal years.'.

(c) Disbursement of Student Loans- Section 422(d) of the Higher Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1696) is amended by adding at the end the following new sentence: `Such amendments shall also be effective on and after July 1, 2006.'.

SEC. 923. TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT OF 1978.

(a) Title I Authorization- Section 110(a) of the Tribally Controlled Community College or University Assistance Act of 1978 (25 U.S.C. 1810(a)) is amended--

(1) by striking `1999' each place it appears and inserting `2006'; and

(2) by striking `4 succeeding' each place it appears and inserting `5 succeeding'.

(b) Title III Reauthorization- Section 306(a) of the Tribally Controlled Community College or University Assistance Act of 1978 (25 U.S.C. 1836(a)) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding' and inserting `5 succeeding'.

(c) Title IV Reauthorization- Section 403 of the Tribal Economic Development and Technology Related Education Assistance Act of 1990 (25 U.S.C. 1852) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding' and inserting `5 succeeding'.

(d) Additional Amendments- The Tribally Controlled Community College or University Assistance Act of 1978 is further amended--

(1) in section 2(a)(6) (25 U.S.C. 1801(a)(6)), by striking `in the field of Indian education' and inserting `in the field of Tribal Colleges and Universities and Indian higher education';

(2) in section 2(b), by striking paragraph (5) and inserting the following:

`(5) Eligible credits earned in a continuing education program shall be determined as one credit for every 10 contact hours for institutions on a quarter system, and 15 contact hours for institutions on a semester system, of participation in an organized continuing education experience under responsible sponsorship, capable direction, and qualified instruction, as described in the criteria established by the International Association for Continuing Education and Training, and may not exceed 20 percent of an institution's total Indian student count.'; and

(3) in section 103 (25 U.S.C. 1804), by striking `and' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting `; and', and by inserting after paragraph (3) the following new paragraph:

`(4) has been accredited by a nationally recognized accrediting agency or association determined by the Secretary of Education 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.'.

SEC. 924. NAVAJO COMMUNITY COLLEGE ACT.

Section 5(a)(1) of the Navajo Community College Act (25 U.S.C. 640c-1(a)(1)) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding' and inserting `5 succeeding'.

SEC. 925. EDUCATION AMENDMENTS OF 1992.

Section 1543(d) of the Education Amendments of 1992 (20 U.S.C. 1070 note) is amended--

(1) by striking `1999' and inserting `2006'; and

(2) by striking `4 succeeding' and inserting `5 succeeding'.

SEC. 926. STUDY OF STUDENT LEARNING OUTCOMES AND PUBLIC ACCOUNTABILITY.

(a) Study Required- The Secretary shall provide for the conduct a study of the best practices of States in assessing undergraduate postsecondary student learning, particularly as such practices relate to public accountability systems.

(b) Characteristics of the Association- Such study shall be conducted by an association or organization with specific expertise and knowledge in state practices and access to necessary state officials (in this section referred to as the `association'). The association responsible for the study under this section shall be a national, non-partisan or bi-partisan entity representing States or State officials with expertise in evaluative and qualitative policy research for best practice models, the capacity to convene experts, and to formulate policy recommendations.

(1) The current status of institutional and state efforts to embed student learning assessments into the state-level public accountability frameworks.

(2) The extent to which there is commonality among educators and accrediting agencies on learning standards for the associates and bachelors degrees.

(3) The reliability, rigor, and generalizability of available instruments to assess general education at the undergraduate level.

(4) Roles and responsibilities for public accountability for student learning.

(d) Consultation-

(1) NATIONAL COMMITTEE- The association shall establish and consult with a national committee. The committee shall meet not less than twice a year to review the research, identify best practice models, and review recommendations.

(2) MEMBERSHIP- The national advisory committee shall consist of a representative of the Secretary of Education and individuals with expertise in--

(A) State accountability systems;

(B) student learning assessments;

(D) transitions between K-12 and higher education; and

(E) Federal higher education policy.

(3) ADDITIONAL EXPERTISE- The association may augment this committee with other expertise, as appropriate.

(e) Congressional Consultation- The association shall consult on a regular basis with the Committee on Education and the Workforce of the House of Representatives and the Committee on Health Education Labor and Pensions of the Senate in carrying out the study required by this section.

(f) Report- The association shall, not later than two years after the date of enactment of this Act, prepare and submit a report on the study required by this section to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate.

SEC. 927. STUDY OF MINORITY GRADUATION RATES.

(a) Study Required- The Secretary of Education shall--

(1) commission a national study on the decreasing numbers of underrepresented minority males, particularly African American males, entering and graduating from colleges and universities; and

(2) make specific recommendations to the Congress on new approaches to increase minority male graduation rates and the number of minority males going into careers where the population is underrepresented.

(b) Submission of Report- Not later than one year after the date of the enactment this Act, the Secretary shall submit a report on the study required by subsection (a)(1), together with the recommendations required by subsection (a)(2), to the Committee on Health, Education, Labor and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives.

SEC. 928. STUDY OF EDUCATION-RELATED INDEBTEDNESS OF MEDICAL SCHOOL GRADUATES.

(a) Study Required- The Secretary of Education shall conduct a study to evaluate the higher education-related indebtedness of medical school graduates in the United States at the time of graduation.

(b) Deadline- Not later than one year after the date of enactment of this Act, the Secretary shall submit a report on the study required by subsection (a) to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor and Pensions of the Senate, and shall make the report widely available to the public. Additional reports may be periodically prepared and released as necessary.

SEC. 929. STUDY OF ADULT LEARNERS.

The Secretary of Education shall conduct a study of the developing trends in older adult learners attending college and how institutions of higher education are addressing the needs of this specific population in terms of outreach, accessibility, financing, and student support services, including online education. The Secretary shall submit a report on the study to the Committee on Education and the Workforce of the House of Representatives that includes recommendations on measures the Federal Government can take to address the needs in regards to education and job training for the aging population and the changing demographics of our country.

SEC. 930. INCREASE IN COLLEGE TEXTBOOK PRICES.

(a) Findings- The Committee on Education and the Workforce of the House of Representatives makes the following findings:

(1) The rising costs of higher education are making a postsecondary education inaccessible for many individuals.

(2) The rise in college textbook pricing contributes to the overall costs of higher education, and many factors have contributed to the rise in textbook pricing.

(b) Sense of the Committee on Education and the Workforce- It is the sense of the Committee on Education and the Workforce of the House of Representatives that in order to make a higher education more accessible for all students, the following should occur to make college textbooks more affordable for students:

(1) The Congress encourages textbook publishers to provide students with the option of buying materials such as textbooks, CD-ROMs, access to websites, and workbooks, `a la carte' or `unbundled'.

(2) Textbook publishers should work with faculty to understand the cost to students of purchasing the recommended textbooks.

(3) College bookstores should work with faculty to review timelines and processes for ordering and stocking selected textbooks, and disclose textbook costs to faculty and students.

(4) Colleges and universities should be encouraged to implement numerous options to address textbook affordability.

PURPOSE

H.R. 609, the College Access and Opportunity Act, reauthorizes the Higher Education Act of 1965 by expanding college access for low- and middle-income students. The bill reauthorizes the teacher training programs, student aid programs, programs that assist minority serving institutions, graduate study programs, international and foreign language programs, and various provisions that support and enhance student access and institutional accountability. The bill includes comprehensive reforms that prioritize student access and strengthen accountability to empower students and parents, the consumers of higher education.

COMMITTEE ACTION

On May 24, 2001, the Chairman of the Education and the Workforce Committee and the Chairman of the Subcommittee on 21st Century Competitiveness, along with the Ranking Members, invited interested parties to provide the Committee with proposals, suggestions and ideas for improvements to the expiring Higher Education Act. The initiative was called `Upping the Effectiveness of Our Federal Student Aid Programs (FED UP).' As part of the Committee's successful `FED UP' project, an email address and web site were developed to allow individuals, organizations, higher education institutions, lenders and citizens to contact the Committee with ease and efficiency. The Committee considered over 3,000 submissions from individuals and more than 100 organizations on this initiative, as part of the reauthorization process.

The Committee on Education and the Workforce and the Subcommittees on 21st Century Competitiveness and Select Education held a total of 35 hearings in Washington, D.C. and across the country, as well as a series of site visits to many institutions of higher education in preparation for and as part of the reauthorization of the Higher Education Act.

107TH CONGRESS

Hearings--First session

On Monday, April 23, 2001, the Committee on Education and the Workforce, Subcommittee on Select Education, held a field hearing in Oklahoma City, Oklahoma, on `Responding to the Needs of Historically Black Colleges and Universities in the 21st Century.' The purpose of the hearing was to examine the unique role of Historically Black Colleges and Universities (HBCUs) and their role in the higher education system. Testifying before the Subcommittee were Dr. Ernest L. Holloway, President, Langston University, Langston, Oklahoma; Dr. Henry Ponder, Chief Executive Officer and President, National Association for Equal Opportunity in Higher Education, Silver Spring, Maryland; Dr. Trudie Kibbe Reed, President, Philander Smith College, Little Rock, Arkansas; Dr. Lawrence A. Davis, Jr., Chancellor, University of Arkansas at Pine Bluff, Pine Bluff, Arkansas; and Dr. Joseph Simmons, Executive Vice President, Lincoln University, Jefferson City, Missouri.

On Wednesday, June 20, 2001, the Committee on Education and the Workforce, Subcommittee on 21st Century Competitiveness, held a hearing in Washington, D.C., on `H.R. 1992, the Internet Equity and Education Act of 2001.' The purpose of the hearing was to hear testimony on the provisions in H.R. 1992 introduced by Representative Johnny Isakson (R-GA) on May 24, 2001. Testifying before the Subcommittee were Dr. Stanley Ikenberry, President, American Council on Education, Washington, D.C.; Dr. Richard Gowan, President, South Dakota School of Mines and Technology, Rapid City, South Dakota; Dr. Joseph DiGregorio, Vice Provost for Distance Learning, Continuing Education and Outreach, Georgia Institute of Technology, Atlanta, Georgia; Ms. Lorraine Lewis, Inspector General, U.S. Department of Education, Washington, D.C.; and Mr. Omer Waddles, Executive Vice President, ITT Educational Services, Inc., Indianapolis, Indiana.

On Monday, July 16, 2001, the Committee on Education and the Workforce, Subcommittee on Select Education, held a field hearing in Wilberforce, Ohio, on `Responding to the Needs of Historically Black Colleges and Universities in the 21st Century.' The purpose of the hearing was to examine the unique role of Historically Black Colleges and Universities (HBCUs) and their role in the higher education system. Testifying before the Subcommittee were Dr. John L. Henderson, President, Wilberforce University, Wilberforce, Ohio; Dr. John W. Garland, President, Central State University, Wilberforce, Ohio; Dr. W. Clinton Pettus, President, Cheyney University of Pennsylvania, Cheyney, Pennsylvania; and Dr. Marjorie Harris, President, Lewis College of Business, Detroit, Michigan.

On Wednesday, October 31, 2001, the Committee on Education and the Workforce, Subcommittees on 21st Century Competitiveness and Select Education, jointly held a hearing in Washington, D.C., on `Tracking International Students in Higher Education--Policy Options and Implications for Students.' The purpose of the hearing was to examine the issues related to international students and their attendance at U.S. institutions of higher education. Testifying before the Subcommittees on the first panel were Ms. Mary Ryan, Assistant Secretary of State for Consular Affairs, U.S. Department of State, Washington, D.C.; and Mr. Michael Becraft, Acting Deputy Commissioner, Immigration and Naturalization Service, Washington, D.C. Testifying before the Subcommittees on the second panel were Dr. David Ward, President, American Council on Education, Washington, D.C.; Dr. Gail Short Hanson, Vice President of Student Services, American University, Washington D.C.; and Ms. Julia Beatty, President, United States Student Association, Washington, D.C.

Second session

On Wednesday, February 13, 2002, the Committee on Education and the Workforce, Subcommittees on 21st Century Competitiveness and Select Education, jointly held a hearing in Washington, D.C., on `Responding to the Needs of Historically Black Colleges and Universities in the 21st Century.' The purpose of the hearing was to examine the unique role played by Historically Black Colleges and Universities (HBCUs) and to examine the unique issues these institutions face. Testifying before the Subcommittees were Dr. William B. DeLauder, President, Delaware State University, Dover, Delaware; Dr. Frederick S. Humphries, Chief Executive Officer and President, National Association for Equal Opportunity in Higher Education, Silver Spring, Maryland; Dr. Shirley A.R. Lewis, President, Paine College, Augusta, Georgia; and Mr. Christopher Elders, student and Rhodes Scholar, Morehouse College, Atlanta, Georgia.

On Tuesday, July 16, 2002, the Committee on Education and the Workforce held a hearing in Washington, D.C., on `Access to Higher Education for Low-Income Students: A Review of the Advisory Committee on Student Financial Assistance Report.' The purpose of the hearing was to consider the issue of access to postsecondary education, specifically for low-income students, by examining two reports released by the Advisory Committee on Student Financial Assistance, entitled Empty Promises--The Myth of College Access in America (July 2002) and Access Denied (February 2001). Testifying before the Committee were Dr. Juliet Garcia, Chairperson, Advisory Committee on Student Financial Assistance, Washington, D.C.; Mr. Lawrence E. Gladieux, Education and Public Policy Consultant, Potomac Falls, Virginia; Dr. Shirley A.R. Lewis, President, Paine College, Augusta, Georgia; and Ms. Elizabeth Sengkhammee, student, University of Wisconsin-Milwaukee, Milwaukee, Wisconsin.

On Thursday, September 19, 2002, the Committee on Education and the Workforce, Subcommittees on 21st Century Competitiveness and Select Education held a joint hearing in Washington, D.C., on `Responding to the Needs of Historically Black Colleges and Universities in the 21st Century.' The purpose of the hearing was to continue efforts to learn about the unique role that Historically Black Colleges and Universities (HBCUs) play in providing postsecondary education to students. Testifying before the Subcommittees were Dr. Michael L. Lomax, President, Dillard University, New Orleans, Louisiana; Dr. Marie McDemmond, President, Norfolk State University, Norfolk, Virginia; Dr. Willis B. McLeod, Chancellor, Fayetteville State University, Fayetteville, North Carolina; Dr. Elson S. Floyd, President, Western Michigan State University, Kalamazoo, Michigan; and Mr. Steve Stephens, II, President, Student Governing Association, Langston University, Langston, Oklahoma.

On Tuesday, September 24, 2002, the Committee on Education and the Workforce, Subcommittees on 21st Century Competitiveness and Select Education held a joint hearing in Washington, D.C., on `Homeland Security: Tracking International Students in Higher Education--Progress & Issues Since 9-11.' The purpose of the hearing was to learn about the implementation of the Student Exchange and Visitor Information System (SEVIS); the issues still outstanding in having SEVIS fully operational; and the interaction between institutions of higher education, the Immigration and Naturalization Service (INS) and the U.S. Department of State. Testifying before the Subcommittees were Mr. Glenn A. Fine, Inspector General, U.S. Department of Justice, Washington, D.C.; Ms. Janis Sposato, Assistant Deputy Executive, Associate Commissioner for Immigration Services Division, Immigration and Naturalization Service, Washington, D.C.; Mr. Stephen A. Edson, Acting Managing Director, Directorate of Visa Services, Bureau of Consular Affairs, U.S. Department of State, Washington, D.C.; and Dr. David Ward, President, American Council on Education, Washington, D.C.

On Tuesday, October 1, 2002, the Committee on Education and the Workforce, Subcommittee on 21st Century Competitiveness held a hearing in Washington, D.C., on `Assuring Quality and Accountability in Postsecondary Education: Assessing the Role of Accreditation.' The purpose of the hearing was to learn more about the accreditation process, how regional and national accreditors interact, and the specific roles and responsibilities of accrediting agencies. Testifying before the Subcommittee were Dr. Judith S. Eaton, President, Council for Higher Education Accreditation, Washington, D.C.; Dr. Charles M. Cook, Director, Commission of Institutions of Higher Education, New England Association of Schools and Colleges, Bedford, Massachusetts; Dr. Laura Palmer Noone, President, University of Phoenix, Phoenix, Arizona; the Honorable Hank Brown, President and Chief Executive Officer, Daniels Fund, Greeley, Colorado; and Dr. Linwood Rose, President, James Madison University, Harrisonburg, Virginia.

On Thursday, October 3, 2002, the Committee on Education and the Workforce held a hearing in Washington, D.C., on `The Rising Price of a Quality Postsecondary Education: Fact or Fiction?' The purpose of this hearing was to examine the effects that increasing costs of a postsecondary education have on students and families. Testifying before the Committee were Dr. Robert A. Corrigan, President, San Francisco State University, San Francisco, California; Dr. Richard M. Freeland, President, Northeastern University, Boston, Massachusetts; Dr. C.D. Mote, Jr., Professor of Engineering (testifying on behalf of Dr. William Kirwan, President, University of Maryland), Glenn L. Martin Institute, College Park, Maryland; and Dr. Gordon Winston, Economics Professor, Williams College, Williamstown, Massachusetts.

On Wednesday, October 9, 2002, the Committee on Education and the Workforce, Subcommittee on 21st Century Competitiveness held a hearing in Washington, D.C., on `Training Tomorrow's Teachers: Ensuring a Quality Postsecondary Education.' The purpose of the hearing was to examine the effectiveness of the competitive grant programs authorized under title II of the