Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	30,712	n/a	n/a
Reported in House	35,820	372	24%
Engrossed in House	39,827	372	24%
Referred in Senate	39,611	5 Show Changes Hide Changes	0%

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HR 3221 EHRFSCommentsClose CommentsPermalink

111th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 3221CommentsClose CommentsPermalink

AN ACTCommentsClose CommentsPermalink

To amend the Higher Education Act of 1965, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Student Aid and Fiscal Responsibility Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. TABLE OF CONTENTS.

The table of contents is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title.CommentsClose CommentsPermalink





Sec. 2. Table of contents.CommentsClose CommentsPermalink





Sec. 3. References.CommentsClose CommentsPermalink





Sec. 4. Prohibition on earmarks.CommentsClose CommentsPermalink





Sec. 5. Use of savings for debt reduction.CommentsClose CommentsPermalink

TITLE I--INVESTING IN STUDENTS AND FAMILIES

Subtitle A--Increasing College Access and Completion

Sec. 101. Federal Pell Grants.CommentsClose CommentsPermalink





Sec. 102. College Access and Completion Innovation Fund.CommentsClose CommentsPermalink





Sec. 103. Investment in historically Black colleges and universities and other minority-serving institutions.CommentsClose CommentsPermalink





Sec. 104. Investment in cooperative education.CommentsClose CommentsPermalink





Sec. 105. Loan forgiveness for servicemembers activated for duty.CommentsClose CommentsPermalink





Sec. 106. Veterans Resource Officer Grants.CommentsClose CommentsPermalink





Sec. 107. Officer Daniel Faulkner Children of Fallen Heroes Scholarship.CommentsClose CommentsPermalink





Sec. 108. Teacher Excellence.CommentsClose CommentsPermalink

Subtitle B--Student Financial Aid Form Simplification

Sec. 121. General effective date.CommentsClose CommentsPermalink





Sec. 122. Treatment of assets in need analysis.CommentsClose CommentsPermalink





Sec. 123. Changes to total income; aid eligibility.CommentsClose CommentsPermalink

TITLE II--STUDENT LOAN REFORM

Subtitle A--Stafford Loan Reform

Sec. 201. Federal Family Education Loan appropriations.CommentsClose CommentsPermalink





Sec. 202. Scope and duration of Federal loan insurance program.CommentsClose CommentsPermalink





Sec. 203. Applicable interest rates.CommentsClose CommentsPermalink





Sec. 204. Federal payments to reduce student interest costs.CommentsClose CommentsPermalink





Sec. 205. Federal PLUS Loans.CommentsClose CommentsPermalink





Sec. 206. Federal Consolidation Loan.CommentsClose CommentsPermalink





Sec. 207. Unsubsidized Stafford loans for middle-income borrowers.CommentsClose CommentsPermalink





Sec. 208. Loan repayment for civil legal assistance attorneys.CommentsClose CommentsPermalink





Sec. 209. Special allowances.CommentsClose CommentsPermalink





Sec. 210. Revised special allowance calculation.CommentsClose CommentsPermalink





Sec. 211. Origination of Direct Loans at institutions located outside the United States.CommentsClose CommentsPermalink





Sec. 212. Agreements with institutions.CommentsClose CommentsPermalink





Sec. 213. Terms and conditions of loans.CommentsClose CommentsPermalink





Sec. 214. Contracts.CommentsClose CommentsPermalink





Sec. 215. Interest rates.CommentsClose CommentsPermalink





Sec. 216. Technical assistance to institutions of higher education.CommentsClose CommentsPermalink





Sec. 217. Outreach Efforts.CommentsClose CommentsPermalink

Subtitle B--Perkins Loan Reform

Sec. 221. Federal Direct Perkins Loans terms and conditions.CommentsClose CommentsPermalink





Sec. 222. Authorization of appropriations.CommentsClose CommentsPermalink





Sec. 223. Allocation of funds.CommentsClose CommentsPermalink





Sec. 224. Federal Direct Perkins Loan allocation.CommentsClose CommentsPermalink





Sec. 225. Agreements with institutions of higher education.CommentsClose CommentsPermalink





Sec. 226. Student loan information by eligible institutions.CommentsClose CommentsPermalink





Sec. 227. Terms of loans.CommentsClose CommentsPermalink





Sec. 228. Distribution of assets from student loan funds.CommentsClose CommentsPermalink





Sec. 229. Implementation of non-title IV revenue requirement.CommentsClose CommentsPermalink





Sec. 230. Administrative expenses.CommentsClose CommentsPermalink

TITLE III--MODERNIZATION, RENOVATION, AND REPAIR

Subtitle A--Elementary and Secondary Education

Sec. 301. Definitions.CommentsClose CommentsPermalink

Chapter 1--Grants for Modernization, Renovation, or Repair of Public School Facilities

Sec. 311. Purpose.CommentsClose CommentsPermalink





Sec. 312. Allocation of funds.CommentsClose CommentsPermalink





Sec. 313. Allowable uses of funds.CommentsClose CommentsPermalink





Sec. 314. Priority projects.CommentsClose CommentsPermalink

Chapter 2--Supplemental Grants for Louisiana, Mississippi, and Alabama

Sec. 321. Purpose.CommentsClose CommentsPermalink





Sec. 322. Allocation to local educational agencies.CommentsClose CommentsPermalink





Sec. 323. Allowable uses of funds.CommentsClose CommentsPermalink

Chapter 3--General Provisions

Sec. 331. Impermissible uses of funds.CommentsClose CommentsPermalink





Sec. 332. Supplement, not supplant.CommentsClose CommentsPermalink





Sec. 333. Prohibition regarding State aid.CommentsClose CommentsPermalink





Sec. 334. Maintenance of effort.CommentsClose CommentsPermalink





Sec. 335. Special rule on contracting.CommentsClose CommentsPermalink





Sec. 336. Use of American iron, steel, and manufactured goods.CommentsClose CommentsPermalink





Sec. 337. Labor standards.CommentsClose CommentsPermalink





Sec. 338. Charter schools.CommentsClose CommentsPermalink





Sec. 339. Green schools.CommentsClose CommentsPermalink





Sec. 340. Reporting.CommentsClose CommentsPermalink





Sec. 341. Special rules.CommentsClose CommentsPermalink





Sec. 342. Promotion of employment experiences.CommentsClose CommentsPermalink





Sec. 343. Advisory Council on Green, High-Performing Public School Facilities.CommentsClose CommentsPermalink





Sec. 344. Education regarding projects.CommentsClose CommentsPermalink





Sec. 345. Availability of funds.CommentsClose CommentsPermalink

Subtitle B--Higher Education

Sec. 351. Federal assistance for community college modernization and construction.CommentsClose CommentsPermalink

TITLE IV--EARLY LEARNING CHALLENGE FUND

Sec. 401. Purpose.CommentsClose CommentsPermalink





Sec. 402. Programs authorized.CommentsClose CommentsPermalink





Sec. 403. Quality pathways grants.CommentsClose CommentsPermalink





Sec. 404. Development grants.CommentsClose CommentsPermalink





Sec. 405. Research and evaluation.CommentsClose CommentsPermalink





Sec. 406. Reporting requirements.CommentsClose CommentsPermalink





Sec. 407. Construction.CommentsClose CommentsPermalink





Sec. 408. Definitions.CommentsClose CommentsPermalink





Sec. 409. Availability of funds.CommentsClose CommentsPermalink

TITLE V--AMERICAN GRADUATION INITIATIVE

Sec. 501. Authorization and appropriation.CommentsClose CommentsPermalink





Sec. 502. Definitions; grant priority.CommentsClose CommentsPermalink





Sec. 503. Grants to eligible entities for community college reform.CommentsClose CommentsPermalink





Sec. 504. Grants to eligible States for community college programs.CommentsClose CommentsPermalink





Sec. 505. National activities.CommentsClose CommentsPermalink

TITLE VI--DEFUND ACORN ACT

Sec. 601. Short title.CommentsClose CommentsPermalink





Sec. 602. Prohibitions on Federal funds and other activities with respect to certain indicted organizations.CommentsClose CommentsPermalink

SEC. 3. 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.).CommentsClose CommentsPermalink

SEC. 4. PROHIBITION ON EARMARKS.

None of the funds appropriated pursuant to this Act may be used for a Congressional earmark as defined in clause 9(d) of rule XXI of the Rules of the House of Representatives.CommentsClose CommentsPermalink

SEC. 5. USE OF SAVINGS FOR DEBT REDUCTION.

All savings in Federal expenditures not otherwise expended as a result of the enactment of this Act shall be made available for the reduction of the Federal deficit.CommentsClose CommentsPermalink

TITLE I--INVESTING IN STUDENTS AND FAMILIESCommentsClose CommentsPermalink

Subtitle A--Increasing College Access and CompletionCommentsClose CommentsPermalink

SEC. 101. FEDERAL PELL GRANTS.

(a) Amount of Grants- Section 401(b) (20 U.S.C. 1070a(b)) is amended--CommentsClose CommentsPermalink





(1) by amending paragraph (2)(A) to read as follows:CommentsClose CommentsPermalink





‘(A) The amount of the Federal Pell Grant for a student eligible under this part shall be--CommentsClose CommentsPermalink





‘(i) the maximum Federal Pell Grant, as specified in the last enacted appropriation Act applicable to that award year, plusCommentsClose CommentsPermalink





‘(ii) the amount of the increase calculated under paragraph (8)(B) for that year, lessCommentsClose CommentsPermalink





‘(iii) an amount equal to the amount determined to be the expected family contribution with respect to that student for that year.’; andCommentsClose CommentsPermalink





(2) by amending paragraph (8), as amended by the Higher Education Opportunity Act (Public Law 110-315), to read as follows:CommentsClose CommentsPermalink





‘(8) ADDITIONAL FUNDS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- There are authorized to be appropriated, and there are appropriated, to carry out subparagraph (B) of this paragraph (in addition to any other amounts appropriated to carry out this section and out of any money in the Treasury not otherwise appropriated) the following amounts--CommentsClose CommentsPermalink





‘(i) $2,030,000,000 for fiscal year 2008;CommentsClose CommentsPermalink





‘(ii) $2,733,000,000 for fiscal year 2009; andCommentsClose CommentsPermalink





‘(iii) such sums as may be necessary for fiscal year 2010 and each subsequent fiscal year to provide the amount of increase of the maximum Federal Pell Grant required by clauses (ii) and (iii) of subparagraph (B).CommentsClose CommentsPermalink





‘(B) INCREASE IN FEDERAL PELL GRANTS- The amounts made available pursuant to subparagraph (A) shall be used to increase the amount of the maximum Federal Pell Grant for which a student shall be eligible during an award year, as specified in the last enacted appropriation Act applicable to that award year, by--CommentsClose CommentsPermalink





‘(i) $490 for each of the award years 2008-2009 and 2009-2010;CommentsClose CommentsPermalink





‘(ii) $690 for the award year 2010-2011; andCommentsClose CommentsPermalink





‘(iii) the amount determined under subparagraph (C) for each succeeding award year.CommentsClose CommentsPermalink





‘(C) INFLATION-ADJUSTED AMOUNTS-CommentsClose CommentsPermalink





‘(i) AWARD YEAR 2011-2012- For award year 2011-2012, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to--CommentsClose CommentsPermalink





‘(I) $5,550 or the total maximum Federal Pell Grant for the preceding award year (as determined under clause (iv)(II)), whichever is greater, increased by a percentage equal to the annual adjustment percentage for award year 2011-2012; reduced byCommentsClose CommentsPermalink





‘(II) $4,860 or the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year, whichever is greater; andCommentsClose CommentsPermalink





‘(III) rounded to the nearest $5.CommentsClose CommentsPermalink





‘(ii) SUBSEQUENT AWARD YEARS- For award year 2012-2013 and each of the subsequent award years, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to--CommentsClose CommentsPermalink





‘(I) the total maximum Federal Pell Grant for the preceding award year (as determined under clause (iv)(II)), increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined; reduced byCommentsClose CommentsPermalink





‘(II) $4,860 or the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year, whichever is greater; andCommentsClose CommentsPermalink





‘(III) rounded to the nearest $5.CommentsClose CommentsPermalink





‘(iii) LIMITATION ON DECREASES- Notwithstanding clauses (i) and (ii), if the amount determined under clause (i) or (ii) for an award year is less than the amount determined under this paragraph for the preceding award year, the amount determined under such clause for such award year shall be the amount determined under this paragraph for the preceding award year.CommentsClose CommentsPermalink





‘(iv) DEFINITIONS- For purposes of this subparagraph--CommentsClose CommentsPermalink





‘(I) the term ‘annual adjustment percentage’ as it applies to an award year is equal to the sum of--CommentsClose CommentsPermalink

‘(aa) the estimated percentage change in the Consumer Price Index (as determined by the Secretary, using the definition in section 478(f)) for the most recent calendar year ending prior to the beginning of that award year; andCommentsClose CommentsPermalink

‘(bb) one percentage point; andCommentsClose CommentsPermalink

‘(II) the term ‘total maximum Federal Pell Grant’ as it applies to a preceding award year is equal to the sum of--CommentsClose CommentsPermalink

‘(aa) the maximum Federal Pell Grant for which a student is eligible during an award year, as specified in the last enacted appropriation Act applicable to that preceding award year; andCommentsClose CommentsPermalink

‘(bb) the amount of the increase in the maximum Federal Pell Grant required by this paragraph for that preceding award year.CommentsClose CommentsPermalink

‘(D) PROGRAM REQUIREMENTS AND OPERATIONS OTHERWISE UNAFFECTED- Except as provided in subparagraphs (B) and (C), nothing in this paragraph shall be construed to alter the requirements and operations of the Federal Pell Grant Program as authorized under this section, or to authorize the imposition of additional requirements or operations for the determination and allocation of Federal Pell Grants under this section.CommentsClose CommentsPermalink





‘(E) AVAILABILITY OF FUNDS- The amounts made available by subparagraph (A) for any fiscal year shall be available beginning on October 1 of that fiscal year, and shall remain available through September 30 of the succeeding fiscal year.’.CommentsClose CommentsPermalink





(b) Multiple Pell Grant Awards- Section 401(b)(5) (20 U.S.C. 1070a(b)(5)) is amended--CommentsClose CommentsPermalink





(1) in subparagraph (A)--CommentsClose CommentsPermalink





(A) by inserting ‘who is making satisfactory academic progress according to the institution’s standards’ after ‘award a student’; andCommentsClose CommentsPermalink





(B) by striking ‘to permit such student to accelerate the student’s progress toward a degree or certificate’ and inserting ‘to permit such student to accelerate the student’s graduation date, whether making full- or part-time progress toward a degree or certificate,’; andCommentsClose CommentsPermalink





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





(C) A student may not receive a combination of first and second scheduled award funds under this paragraph that exceeds the amount the student would otherwise be eligible to receive for the payment period.CommentsClose CommentsPermalink





(c) Conforming Amendments- Title IV (20 U.S.C. 1070 et seq.) is further amended--CommentsClose CommentsPermalink





(1) in section 401(b)(6), as amended by the Higher Education Opportunity Act (Public Law 110-315), by striking ‘the grant level specified in the appropriate Appropriation Act for this subpart for such year’ and inserting ‘the Federal Pell Grant amount, determined under paragraph (2)(A), for which a student is eligible during such award year’;CommentsClose CommentsPermalink





(2) in section 402D(d)(1), by striking ‘exceed the maximum appropriated Pell Grant’ and inserting ‘exceed the Federal Pell Grant amount, determined under section 401(b)(2)(A), for which a student is eligible’;CommentsClose CommentsPermalink





(3) in section 435(a)(5)(A)(i)(I), by striking ‘one-half the maximum Federal Pell Grant award for which a student would be eligible’ and inserting ‘one-half the Federal Pell Grant amount, determined under section 401(b)(2)(A), for which a student would be eligible’;CommentsClose CommentsPermalink





(4) in section 483(e)(3)(A)(ii), by striking ‘based on the maximum Federal Pell Grant award at the time of application’ and inserting ‘based on the Federal Pell Grant amount, determined under section 401(b)(2)(A), for which a student is eligible at the time of application’;CommentsClose CommentsPermalink





(5) in section 485E(b)(1)(A), by striking ‘of such students’ potential eligibility for a maximum Federal Pell Grant under subpart 1 of part A’ and inserting ‘of such students’ potential eligibility for the Federal Pell Grant amount, determined under section 401(b)(2)(A), for which the student would be eligible’; andCommentsClose CommentsPermalink





(6) in section 894(f)(2)(C)(ii)(I), by striking ‘the maximum Federal Pell Grant for each award year’ and inserting ‘the Federal Pell Grant amount, determined under section 401(b)(2)(A), for which a student may be eligible for each award year’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by subsections (a) and (c) of this section shall take effect on July 1, 2010.CommentsClose CommentsPermalink

SEC. 102. COLLEGE ACCESS AND COMPLETION INNOVATION FUND.

(a) Header- Part E of title VII (20 U.S.C. 1141 et seq.) is amended by striking the header of such part and inserting the following:CommentsClose CommentsPermalink

‘PART E--COLLEGE ACCESS AND COMPLETION INNOVATION FUND’.

(b) Purpose- Part E of title VII (20 U.S.C. 1141 et seq.) is further amended by inserting before section 781 the following:CommentsClose CommentsPermalink

‘SEC. 780. PURPOSES.

‘The purposes of this part are--CommentsClose CommentsPermalink





‘(1) to promote innovation in postsecondary education practices and policies by institutions of higher education, States, and nonprofit organizations to improve student success, completion, and post-completion employment, particularly for students from groups that are underrepresented in postsecondary education; andCommentsClose CommentsPermalink





‘(2) to assist States in developing longitudinal data systems, common metrics, and reporting systems to enhance the quality and availability of information about student success, completion, and post-completion employment.’.CommentsClose CommentsPermalink





(c) Authorization and Appropriation- Section 781(a) (20 U.S.C. 1141(a)) is amended to read as follows:CommentsClose CommentsPermalink





‘(a) Authorization and Appropriation-CommentsClose CommentsPermalink





‘(1) IN GENERAL- There are authorized to be appropriated, and there are appropriated, to carry out this part (in addition to any other amounts appropriated to carry out this part and out of any money in the Treasury not otherwise appropriated), $600,000,000 for each of the fiscal years 2010 through 2014.CommentsClose CommentsPermalink





‘(2) ALLOCATIONS- Of the amount appropriated for any fiscal year under paragraph (1)--CommentsClose CommentsPermalink





‘(A) 25 percent shall be made available to carry out section 781;CommentsClose CommentsPermalink





‘(B) 50 percent shall be made available to carry out section 782;CommentsClose CommentsPermalink





‘(C) 23 percent shall be made available to carry out section 783; andCommentsClose CommentsPermalink





‘(D) 2 percent shall be made available to carry out section 784.CommentsClose CommentsPermalink





‘(3) EXPIRATION OF AUTHORITY- The authority to award grants under this part shall expire at the end of fiscal year 2014.’.CommentsClose CommentsPermalink





(d) State Grants and Grants to Eligible Entities- Part E of title VII (20 U.S.C. 1141 et seq.) is further amended by adding at the end the following:CommentsClose CommentsPermalink

‘SEC. 782. STATE INNOVATION COMPLETION GRANTS.

‘(a) Program Authorization- From the amount appropriated under section 781(a)(2)(B) to carry out this section, the Secretary shall award grants to States on a competitive basis to promote student persistence in, and completion of, postsecondary education.CommentsClose CommentsPermalink





‘(b) Federal Share; Non-Federal Share-CommentsClose CommentsPermalink





‘(1) FEDERAL SHARE- The amount of the Federal share under this section for a fiscal year shall be equal to 2/3 of the costs of the activities and services described in subsection (d)(1) that are carried out under the grant.CommentsClose CommentsPermalink





‘(2) NON-FEDERAL SHARE- The amount of the non-Federal share under this section shall be equal to 1/3 of the costs of the activities and services described in subsection (d)(1). The non-Federal share may be in cash or in kind, and may be provided from State resources, contributions from private organizations, or both.CommentsClose CommentsPermalink





‘(3) SUPPLEMENT, NOT SUPPLANT- The Federal and non-Federal shares required by this paragraph shall be used to supplement, and not supplant, State and private resources that would otherwise be expended to carry out activities and services to promote student persistence in and completion of postsecondary education.CommentsClose CommentsPermalink





‘(c) Application and Selection-CommentsClose CommentsPermalink





‘(1) APPLICATION REQUIREMENTS- For each fiscal year for which a State desires to receive a grant under this section, the State agency with jurisdiction over higher education, or another agency designated by the Governor or chief executive of the State to administer the grant program under this section, shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. Such application shall include--CommentsClose CommentsPermalink





‘(A) a description of the State’s capacity to administer the grant under this section;CommentsClose CommentsPermalink





‘(B) a description of the State’s plans for using the grant funds for activities described in subsection (d)(1), including plans for how the State will make special efforts to provide benefits to students in the State who are from groups that are underrepresented in postsecondary education;CommentsClose CommentsPermalink





‘(C) a description of how the State will provide for the non-Federal share from State resources, private contributions, or both;CommentsClose CommentsPermalink





‘(D) a description of--CommentsClose CommentsPermalink





‘(i) the administrative system that the State has in place to administer the activities and services described in subsection (d)(1); orCommentsClose CommentsPermalink





‘(ii) the plan to develop such administrative system;CommentsClose CommentsPermalink





‘(E) a description of the data system the State has or will have in place to measure the performance and progress toward the State’s goals included in the Access and Completion Plan submitted, or that will be submitted, under paragraph (2)(A); andCommentsClose CommentsPermalink





‘(F) the assurances under paragraph (2).CommentsClose CommentsPermalink





‘(2) STATE ASSURANCES- The assurances required in paragraph (1)(F) shall include an assurance of each of the following:CommentsClose CommentsPermalink





‘(A) That the State will submit, not later than July 1, 2011, an Access and Completion Plan to increase the State’s rate of persistence in and completion of postsecondary education. Such plan shall include--CommentsClose CommentsPermalink





‘(i) the State’s annual and long-term quantifiable goals with respect to--CommentsClose CommentsPermalink





‘(I) the rates of postsecondary enrollment, persistence, and completion, disaggregated by income, race, ethnicity, sex, disability, and age of students;CommentsClose CommentsPermalink





‘(II) closing gaps in enrollment, persistence, and completion rates for students from groups that are underrepresented in postsecondary education;CommentsClose CommentsPermalink





‘(III) targeting education and training programs to address labor market needs in the State, as such needs are determined by the State, or the State in coordination with the State public employment service, the State workforce investment board, or industry or sector partnerships in the State; andCommentsClose CommentsPermalink





‘(IV) improving coordination between public two-year and public four-year institutions of higher education in the State, including supporting comprehensive articulation agreements between such institutions in consultation with faculty from participating institutions; andCommentsClose CommentsPermalink





‘(ii) the State’s plan to develop an interoperable statewide longitudinal data system that--CommentsClose CommentsPermalink





‘(I) can be linked to other data systems, as applicable, including elementary and secondary education and workforce data systems;CommentsClose CommentsPermalink





‘(II) will collect, maintain, disaggregate (by institution, income, race, ethnicity, sex, disability, and age of students), and analyze postsecondary education and workforce information, including--CommentsClose CommentsPermalink

‘(aa) postsecondary education enrollment, persistence, and completion information;CommentsClose CommentsPermalink

‘(bb) post-completion employment outcomes of students who enrolled in postsecondary programs and training programs offered by eligible training providers under the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.);CommentsClose CommentsPermalink

‘(cc) postsecondary education and employment outcomes of students who move out of the State; andCommentsClose CommentsPermalink

‘(dd) postsecondary instructional workforce information; andCommentsClose CommentsPermalink

‘(III) makes the information described in subclause (I) available to the general public in a manner that is transparent and user-friendly.CommentsClose CommentsPermalink





‘(B) That the State has a comprehensive planning or policy formulation process with respect to increasing postsecondary enrollment, persistence, and completion that--CommentsClose CommentsPermalink





‘(i) encourages coordination between the State administration of grants under this section and similar State programs;CommentsClose CommentsPermalink





‘(ii) encourages State practices that are designed to improve rates of enrollment and persistence in, and completion of, postsecondary education;CommentsClose CommentsPermalink





‘(iii) encourages State policies that are designed to improve rates of enrollment and re-enrollment of dislocated workers in postsecondary education;CommentsClose CommentsPermalink





‘(iv) encourages the full use of State resources in support of financial literacy programs;CommentsClose CommentsPermalink





‘(v) considers the postsecondary education needs of students from groups that are underrepresented in postsecondary education; andCommentsClose CommentsPermalink





‘(vi) provides for direct, equitable, and active participation in the comprehensive planning or policy formulation process or processes, through membership on State planning commissions, State advisory councils, or other State entities established by the State and consistent with State law, by representatives of--CommentsClose CommentsPermalink





‘(I) institutions of higher education, including at least one member from a junior or community college (as defined in section 312(f));CommentsClose CommentsPermalink





‘(II) students;CommentsClose CommentsPermalink





‘(III) other providers of postsecondary education services (including organizations providing access to such services);CommentsClose CommentsPermalink





‘(IV) the general public in the State; andCommentsClose CommentsPermalink





‘(V) postsecondary education faculty members, including at least one faculty member whose primary responsibilities are teaching and scholarship.CommentsClose CommentsPermalink





‘(C) That the State will incorporate policies and practices that, through the activities funded under this section, are determined to be effective in improving rates of postsecondary education enrollment, persistence, and completion into the future postsecondary education policies and practices of the State to ensure that the benefits achieved through the activities funded under this section continue beyond the period of the grant.CommentsClose CommentsPermalink





‘(D) That the State will participate in the evaluation required under section 784.CommentsClose CommentsPermalink





‘(3) SUBGRANTS TO NONPROFIT ORGANIZATIONS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- A State receiving a payment under this section may elect to make a subgrant to one or more nonprofit organizations in the State, or a partnership of such organizations, to carry out activities and services described in subsection (d)(1), if the nonprofit organization or partnership--CommentsClose CommentsPermalink





‘(i) was in existence on the day before the date of the enactment of the Student Aid and Fiscal Responsibility Act of 2009; andCommentsClose CommentsPermalink





‘(ii) as of such day, was participating in activities and services related to promoting persistence in, and completion of, postsecondary education, such as the activities and services described in subsection (d)(1).CommentsClose CommentsPermalink





‘(B) NONPROFIT ORGANIZATIONS- For the purposes of this section, nonprofit organizations in a State include--CommentsClose CommentsPermalink





‘(i) agencies with agreements with the Secretary under subsections (b) and (c) of section 428 on the date of the enactment of the Student Aid and Fiscal Responsibility Act of 2009;CommentsClose CommentsPermalink





‘(ii) nonprofit subsidiaries of agencies described in clause (i), if such subsidiaries were established, pursuant to the law of such State, on or before January 1, 1998; andCommentsClose CommentsPermalink





‘(iii) eligible not-for-profit servicers, as defined in section 456(d), with an agreement with the Secretary under subsection (a)(3) of section 456, except that such a servicer shall only be eligible for a subgrant from the State for which the servicer is receiving an allocation under such agreement.CommentsClose CommentsPermalink





‘(4) PRIORITY- In awarding grants under this section, the Secretary shall give priority to States that enter into a partnership with one of the following entities to carry out the activities and services described in subsection (d)(1):CommentsClose CommentsPermalink





‘(A) A philanthropic organization, as such term is defined in section 781(i)(1).CommentsClose CommentsPermalink





‘(B) An agency with an agreement with the Secretary under subsections (b) and (c) of section 428 on the date of the enactment of Student Aid and Fiscal Responsibility Act of 2009.CommentsClose CommentsPermalink





‘(C) A nonprofit subsidiary of agencies described in subparagraph (B), if such subsidiary was established, pursuant to the law of such State, on or before January 1, 1998.CommentsClose CommentsPermalink





‘(d) Uses of Funds-CommentsClose CommentsPermalink





‘(1) AUTHORIZED USES- A State receiving a grant under this section shall use the grant funds to--CommentsClose CommentsPermalink





‘(A) provide programs in such State that increase persistence in, and completion of, postsecondary education, which may include--CommentsClose CommentsPermalink





‘(i) assisting institutions of higher education in providing financial literacy, education, and counseling to enrolled students;CommentsClose CommentsPermalink





‘(ii) assisting students enrolled in an institution of higher education to reduce the amount of loan debt incurred by such students;CommentsClose CommentsPermalink





‘(iii) providing loan counseling, loan delinquency, and default aversion assistance to student loan borrowers and institutions of higher education;CommentsClose CommentsPermalink





‘(iv) providing grants to students described in section 415A(a)(1), in accordance with the terms of that section;CommentsClose CommentsPermalink





‘(v) carrying out the activities described in section 415E(a), in accordance with such section;CommentsClose CommentsPermalink





‘(vi) assisting institutions of higher education institute programs of persistence focused on students at risk of not completing; andCommentsClose CommentsPermalink





‘(vii) programs to provide financial literacy education and counseling to elementary, secondary, and postsecondary students that include an examination of how financial planning may impact a student’s ability to pursue postsecondary education; andCommentsClose CommentsPermalink





‘(B) support the development and implementation of a statewide longitudinal data system, as described in subsection (c)(2)(A)(ii).CommentsClose CommentsPermalink





‘(2) PROHIBITED USES- Funds made available under this section shall not be used to promote any lender’s loans.CommentsClose CommentsPermalink





‘(3) RESTRICTIONS ON USE OF FUNDS- A State--CommentsClose CommentsPermalink





‘(A) shall use not less than 1/3 of the sum of the Federal and non-Federal share used for paragraph (1)(A) on activities that benefit students enrolled in junior or community colleges (as defined in section 312(f)), two-year public institutions, or two-year programs of instruction at four-year public institutions;CommentsClose CommentsPermalink





‘(B) may use not more than 10 percent of the sum of the Federal and non-Federal share under this section for activities described in paragraph (1)(B); andCommentsClose CommentsPermalink





‘(C) may use not more than 6 percent of the sum of the Federal and non-Federal share under this section for administrative purposes relating to the grant under this section.CommentsClose CommentsPermalink





‘(e) Annual Report- Each State receiving a grant under this section shall submit to the Secretary an annual report on--CommentsClose CommentsPermalink





‘(1) the activities and services described in subsection (d)(1) that are carried out with such grant;CommentsClose CommentsPermalink





‘(2) the effectiveness of such activities and services in increasing postsecondary persistence and completion, as determined by measurable progress in achieving the State’s goals for persistence and completion described in the Access and Completion Plan submitted by the State under subsection (c)(2)(A), if such plan has been submitted; andCommentsClose CommentsPermalink





‘(3) any other information or assessments the Secretary may require.CommentsClose CommentsPermalink





‘(f) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) DISLOCATED WORKER- The term ‘dislocated worker’ has the meaning given such term in section 101(9) of the Workforce Investment Act of 1998 (29 U.S.C. 2801(9)).CommentsClose CommentsPermalink





‘(2) INDUSTRY OR SECTOR PARTNERSHIP- The term ‘industry or sector partnership’ means a workforce collaborative that organizes key stakeholders in a targeted industry cluster into a working group that focuses on the human capital needs of a targeted industry cluster and that includes--CommentsClose CommentsPermalink





‘(A) representatives of multiple firms or employers (including workers) in a targeted industry cluster, including small- and medium-sized employers when practicable;CommentsClose CommentsPermalink





‘(B) 1 or more representatives of State labor organizations, trade unions or consortia of trade unions, or other labor organizations;CommentsClose CommentsPermalink





‘(C) 1 or more representatives of local workforce investment boards;CommentsClose CommentsPermalink





‘(D) 1 or more representatives of postsecondary educational institutions or other training providers; andCommentsClose CommentsPermalink





‘(E) 1 or more representatives of State workforce agencies or other entities providing employment services.CommentsClose CommentsPermalink





‘(3) STATE PUBLIC EMPLOYMENT SERVICE- The term ‘State public employment service’ has the meaning given such term in section 502(a)(9) of the Student Aid and Fiscal Responsibility Act of 2009.CommentsClose CommentsPermalink





‘(4) STATE WORKFORCE INVESTMENT BOARD; LOCAL WORKFORCE INVESTMENT BOARD- The terms ‘State workforce investment board’ and ‘local workforce investment board’ have the meanings given such terms in section 502(a)(10) of the Student Aid and Fiscal Responsibility Act of 2009.CommentsClose CommentsPermalink

‘SEC. 783. INNOVATION IN COLLEGE ACCESS AND COMPLETION NATIONAL ACTIVITIES.

‘(a) Programs Authorized- From the amount appropriated under section 781(a)(2)(C) to carry out this section, the Secretary shall award grants, on a competitive basis, to eligible entities in accordance with this section to conduct innovative programs that advance knowledge about, and adoption of, policies and practices that increase the number of individuals with postsecondary degrees or certificates.CommentsClose CommentsPermalink





‘(b) Eligible Entities- The Secretary is authorized to award grants under subsection (a) to--CommentsClose CommentsPermalink





‘(1) institutions of higher education;CommentsClose CommentsPermalink





‘(2) States;CommentsClose CommentsPermalink





‘(3) nonprofit organizations with demonstrated experience in the support, improvement, or operation of programs to increase postsecondary completion, including--CommentsClose CommentsPermalink





‘(A) agencies with agreements with the Secretary under subsections (b) and (c) of section 428 on the date of the enactment of the Student Aid and Fiscal Responsibility Act of 2009;CommentsClose CommentsPermalink





‘(B) nonprofit subsidiaries of agencies described in subparagraph (A), if such subsidiaries were established, pursuant to State law, on or before January 1, 1998; andCommentsClose CommentsPermalink





‘(C) eligible not-for-profit servicers, as defined in section 456(d), with an agreement with the Secretary under subsection (a)(3) of section 456, except that such a servicer shall only be eligible for a subgrant from the State for which the servicer is receiving an allocation under such agreement;CommentsClose CommentsPermalink





‘(4) philanthropic organizations (as such term is defined in section 781(i)(1));CommentsClose CommentsPermalink





‘(5) entities receiving a grant under chapter 1 of subpart 2 of part A of title IV; andCommentsClose CommentsPermalink





‘(6) consortia of any of the entities described in paragraphs (1) through (5).CommentsClose CommentsPermalink





‘(c) Innovation Grants-CommentsClose CommentsPermalink





‘(1) MINIMUM AWARD- A grant awarded under subsection (a) shall be not less than $1,000,000.CommentsClose CommentsPermalink





‘(2) GRANTS USES- The Secretary’s authority to award grants under subsection (a) includes--CommentsClose CommentsPermalink





‘(A) the authority to award to an eligible entity a grant in an amount equal to all or part of the amount of funds received by such entity from philanthropic organizations (as such term is defined in section 781(i)(1)) to conduct innovative programs that advance knowledge about, and adoption of, policies and practices that increase the number of individuals with postsecondary degrees or certificates; andCommentsClose CommentsPermalink





‘(B) the authority to award an eligible entity a grant to develop 2-year programs that provide supplemental grant or loan benefits to students that--CommentsClose CommentsPermalink





‘(i) are designed to improve student outcomes, including degree completion, graduation without student loan debt, and post-completion employment;CommentsClose CommentsPermalink





‘(ii) are in addition to the student financial aid available under title IV of this Act; andCommentsClose CommentsPermalink





‘(iii) do not result in the reduction of the amount of that aid or any other student financial aid for which a student is otherwise eligible under Federal law.CommentsClose CommentsPermalink





‘(3) APPLICATION- To be eligible to receive a grant under subsection (a), an eligible entity shall submit an application at such time, in such manner, and containing such information as the Secretary shall require.CommentsClose CommentsPermalink





‘(4) PRIORITIES- In awarding grants under subsection (a), the Secretary shall give priority to applications that--CommentsClose CommentsPermalink





‘(A) are from an eligible entity with demonstrated experience in serving students from groups that are underrepresented in postsecondary education, including institutions of higher education that are eligible for assistance under title III or V, or are from a consortium that includes an eligible entity with such experience;CommentsClose CommentsPermalink





‘(B) are from an eligible entity that is a public institution of higher education that does not predominantly provide an educational program for which it awards a bachelor’s degree (or an equivalent degree), or from a consortium that includes at least one such institution;CommentsClose CommentsPermalink





‘(C) include activities to increase degree or certificate completion in the fields of science, technology, engineering, and mathematics, including preparation for, or entry into, postbaccaluareate study, especially for women and other groups of students who are underrepresented in such fields;CommentsClose CommentsPermalink





‘(D) include activities to increase degree or certificate completion for students who are veterans;CommentsClose CommentsPermalink





‘(E) include activities that enhance the financial literacy and awareness of students who are potentially eligible for assistance under this Act, especially those students from groups that are traditionally underrepresented in postsecondary education;CommentsClose CommentsPermalink





‘(F) include activities to encourage dislocated workers (as such term is defined in section 101(9) of the Workforce Investment Act of 1998 (29 U.S.C. 2801(9)) to complete postsecondary education opportunities;CommentsClose CommentsPermalink





‘(G) are from an eligible entity that is a philanthropic organization with the primary purpose of providing scholarships and support services to students from groups that are underrepresented in postsecondary education, or are from a consortium that includes such an organization; orCommentsClose CommentsPermalink





‘(H) are from an eligible entity that encourages partnerships between institutions of higher education with high degree-completion rates and institutions of higher education with low degree-completion rates from the same category of institutions described in section 132(d) to facilitate the sharing of information relating to, and the implementation of, best practices for increasing postsecondary completion.CommentsClose CommentsPermalink





‘(5) TECHNICAL ASSISTANCE- The Secretary may reserve up to $5,000,000 per year to award grants and contracts to provide technical assistance to eligible entities receiving a grant under subsection (a), including technical assistance on the evaluation conducted in accordance with section 784 and establishing networks of eligible entities receiving grants under such subsection.CommentsClose CommentsPermalink





‘(d) Reports-CommentsClose CommentsPermalink





‘(1) ANNUAL REPORTS BY ENTITIES- Each eligible entity receiving a grant under subsection (a) shall submit to the Secretary an annual report on--CommentsClose CommentsPermalink





‘(A) the effectiveness of the program carried out with such grant in increasing postsecondary completion, as determined by measurable progress in achieving the goals of the program, as described in the application for such grant; andCommentsClose CommentsPermalink





‘(B) any other information or assessments the Secretary may require.CommentsClose CommentsPermalink





‘(2) ANNUAL REPORT TO CONGRESS- The Secretary shall submit to the authorizing committees an annual report on grants awarded under subsection (a), including--CommentsClose CommentsPermalink





‘(A) the amount awarded to each eligible entity receiving a grant under such subsection; andCommentsClose CommentsPermalink





‘(B) a description of the activities conducted by each such eligible entity.CommentsClose CommentsPermalink

‘SEC. 784. EVALUATION.

‘From the amount appropriated under section 781(a)(2)(D), the Director of the Institute of Education Sciences shall evaluate the programs funded under this part. Not later than January 30, 2016, the Director shall issue a final report on such evaluation to the authorizing committees and the Secretary, and shall make such report available to the public.CommentsClose CommentsPermalink

‘SEC. 785. PARTICIPATION OF PRIVATE, NONPROFIT INSTITUTIONS OF HIGHER EDUCATION.

‘(a) Voluntary Participation- A private, nonprofit institution of higher education may voluntarily elect to participate in a State’s efforts under this part to increase postsecondary enrollment, persistence, and completion. A State--CommentsClose CommentsPermalink





‘(1) shall not require any private, nonprofit institution to participate in such efforts; andCommentsClose CommentsPermalink





‘(2) may require such an institution that voluntarily elects to participate in such efforts to provide appropriate information to allow the State to assess the institution’s progress towards the goals described in subclauses (I) and (II) of section 782(c)(2)(A)(i).CommentsClose CommentsPermalink





‘(b) Rule of Construction- Nothing in this part, including voluntary participation described in subsection (a), shall be construed to--CommentsClose CommentsPermalink





‘(1) authorize the Secretary, a State, or an officer or employee of the Department or of a State to exercise any direction, supervision, or control other than that is currently granted over a private, nonprofit institution of higher education, including control over curriculum, program of instruction, administration, governance, personnel, articulation, the awarding of credit, graduation or degree requirements, or admissions;CommentsClose CommentsPermalink





‘(2) authorize the Secretary, a State, or an officer or employee of the Department or of a State to require a private, nonprofit institution of higher education to participate in a longitudinal data system; orCommentsClose CommentsPermalink





‘(3) limit the application of the General Education Provisions Act.CommentsClose CommentsPermalink





‘(c) Enforcement- If any State fails or refuses to comply with any provision of this section, the State shall no longer be eligible for assistance under this part.’.CommentsClose CommentsPermalink

SEC. 103. INVESTMENT IN HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND OTHER MINORITY-SERVING INSTITUTIONS.

Section 371 (20 U.S.C. 1067q) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) in paragraph (2), by striking ‘section 502’ and inserting ‘section 502(a)’;CommentsClose CommentsPermalink





(B) in paragraph (3), by striking ‘section 316’ and inserting ‘section 316(b)’;CommentsClose CommentsPermalink





(C) in paragraph (5), by striking ‘in subsection (c)’ and inserting ‘in section 318(b)’;CommentsClose CommentsPermalink





(D) in paragraph (6), by striking ‘in subsection (c)’ and inserting ‘in section 320(b)’; andCommentsClose CommentsPermalink





(E) in paragraph (7), by striking ‘in subsection (c)’ and inserting ‘in section 319(b)’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) in paragraph (1)(A), by striking ‘$255,000,000’ and all that follows and inserting ‘$255,000,000 for each of the fiscal years 2008 through 2019. The authority to award grants under this section shall expire at the end of fiscal year 2019.’; andCommentsClose CommentsPermalink





(B) by amending paragraph (2)(B) to read as follows:CommentsClose CommentsPermalink





‘(B) STEM AND ARTICULATION PROGRAMS- From the amount made available for allocation under this subparagraph by subparagraph (A)(i) for any fiscal year--CommentsClose CommentsPermalink





‘(i) 90 percent shall be available for Hispanic-serving institutions for activities described in sections 503 and 513, with a priority given to applications that propose--CommentsClose CommentsPermalink





‘(I) to increase the number of Hispanic and other low-income students attaining degrees in the fields of science, technology, engineering, or mathematics; andCommentsClose CommentsPermalink





‘(II) to develop model transfer and articulation agreements between 2-year Hispanic-serving institutions and 4-year institutions in such fields; andCommentsClose CommentsPermalink





‘(ii) 10 percent shall be available for grants under section 355.’;CommentsClose CommentsPermalink





(C) in paragraph (2)(C)(ii), by striking ‘and shall be available for a competitive’ and all that follows and inserting ‘and shall be made available as grants under section 318 and allotted among such institutions under section 318(e), treating such amount, plus the amount appropriated for such fiscal year in a regular or supplemental appropriation Act to carry out section 318, as the amount appropriated to carry out section 318 for purposes of allotments under section 318(e).’; andCommentsClose CommentsPermalink





(D) in paragraph (2)(D)--CommentsClose CommentsPermalink





(i) in clause (iii), by striking ‘for activities described in section 311(c)’ and inserting ‘and shall be made available as grants under section 320, treating such $5,000,000 as part of the amount appropriated for such fiscal year in a regular or supplemental appropriation Act to carry out such section and using such $5,000,000 for purposes described in subsection (c) of such section’; andCommentsClose CommentsPermalink





(ii) in clause (iv), by striking ‘described in subsection (a)(7)--’ and all that follows and inserting ‘and shall be made available as grants under section 319, treating such $5,000,000 as part of the amount appropriated for such fiscal year in a regular or supplemental appropriation Act to carry out such section and using such $5,000,000 for purposes described in subsection (c) of such section.’; andCommentsClose CommentsPermalink





(3) by striking subsection (c).CommentsClose CommentsPermalink

SEC. 104. INVESTMENT IN COOPERATIVE EDUCATION.

There are authorized to be appropriated, and there are appropriated, to carry out part N of title VIII of the Higher Education Act of 1965 (20 U.S.C. 1161n) (in addition to any other amounts appropriated to carry out such part and out of any money in the Treasury not otherwise appropriated), $10,000,000 for fiscal year 2010. The authority to award grants under part N of title VIII of such Act shall expire at the end of fiscal year 2010.CommentsClose CommentsPermalink

SEC. 105. LOAN FORGIVENESS FOR SERVICEMEMBERS ACTIVATED FOR DUTY.

(a) In General- Section 484B(b)(2) (20 U.S.C. 1091b(b)(2)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(F) TUITION RELIEF FOR STUDENTS CALLED TO MILITARY SERVICE-CommentsClose CommentsPermalink





‘(i) WAIVER OF REPAYMENT BY STUDENTS CALLED TO MILITARY SERVICE- In addition to the waivers authorized by subparagraphs (D) and (E), the Secretary shall waive the amounts that students are required to return under this section if the withdrawals on which the returns are based are withdrawals necessitated by reason of service in the uniformed services.CommentsClose CommentsPermalink





‘(ii) LOAN FORGIVENESS AUTHORIZED- Whenever a student’s withdrawal from an institution of higher education is necessitated by reason of service in the uniformed services, the Secretary shall, with respect to the payment period or period of enrollment for which such student did not receive academic credit as a result of such withdrawal, carry out a program--CommentsClose CommentsPermalink





‘(I) through the holder of the loan, to assume the obligation to repay--CommentsClose CommentsPermalink

‘(aa) the outstanding principal and accrued interest on any loan assistance first disbursed to the student before July 1, 2010, under part B (including to a parent on behalf of the student under section 428B) for such payment period or period of enrollment; minusCommentsClose CommentsPermalink

‘(bb) any amount of such loan assistance returned by the institution in accordance with paragraph (1) of this subsection for such payment period or period of enrollment; andCommentsClose CommentsPermalink

‘(II) to cancel--CommentsClose CommentsPermalink

‘(aa) the outstanding principal and accrued interest on the loan assistance disbursed to the student under part D (including a Federal Direct PLUS loan disbursed to a parent on behalf of the student), or first disbursed to the student under part E before July 1, 2010, for such payment period or period of enrollment; minusCommentsClose CommentsPermalink

‘(bb) any amount of such loan assistance returned by the institution in accordance with paragraph (1) of this subsection for such payment period or period of enrollment.CommentsClose CommentsPermalink

‘(iii) REIMBURSEMENT FOR CANCELLATION OF PERKINS LOANS- The Secretary shall pay to each institution for each fiscal year an amount equal to the aggregate of the amounts of Federal Perkins loans in such institutions’s student loan fund which are cancelled pursuant to clause (iii)(II) for such fiscal year, minus an amount equal to the aggregate of the amounts of any such loans so canceled which were made from Federal capital contributions to its student loan fund provided by the Secretary under section 468. None of the funds appropriated pursuant to section 461(b) shall be available for payments pursuant to this paragraph. To the extent feasible, the Secretary shall pay the amounts for which any institution qualifies under this paragraph not later than 3 months after the institution files an institutional application for campus-based funds.CommentsClose CommentsPermalink





‘(iv) LOAN ELIGIBILITY AND LIMITS FOR STUDENTS- Any amounts that are returned by an institution in accordance with paragraph (1), or forgiven or waived by the Secretary under this subparagraph, with respect to a payment period or period of enrollment for which a student did not receive academic credit as a result of withdrawal necessitated by reason of service in the uniformed services, shall not be included in the calculation of the student’s annual or aggregate loan limits for assistance under this title, or otherwise affect the student’s eligibility for grants or loans under this title.CommentsClose CommentsPermalink





‘(v) DEFINITION- In this subparagraph, the term ‘service in the uniformed services’ has the meaning given such term in section 484C(a).’.CommentsClose CommentsPermalink





(b) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- The amendments made by this section shall take effect for periods of service in the uniformed services beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) DEFINITION- In this paragraph, the term ‘period of service in the uniformed services’ means the period beginning 30 days prior to the date a student is required to report to service in the uniformed services (as defined in section 484C(a) of the Higher Education Act of 1965 (20 U.S.C. 1091c(a)) and ending upon termination of the deployment of such student for such service.CommentsClose CommentsPermalink

SEC. 106. VETERANS RESOURCE OFFICER GRANTS.

Section 873 (20 U.S.C. 1161t) is amended--CommentsClose CommentsPermalink





(1) by amending the header to read as follows: ‘model programs for centers of excellence for veteran student success; veterans resource officers’;CommentsClose CommentsPermalink





(2) in subsection (a), by inserting ‘, or Veterans Resource Officers,’ after ‘model programs’;CommentsClose CommentsPermalink





(3) by amending subsection (b) to read as follows:CommentsClose CommentsPermalink





‘(b) Grant Authorized-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Subject to the availability of appropriations under subsection (f), the Secretary shall award grants to institutions of higher education to--CommentsClose CommentsPermalink





‘(A) develop model programs to support veteran student success in postsecondary education; orCommentsClose CommentsPermalink





‘(B) hire a Veterans Resource Officer to increase the college completion rates for veteran students enrolled at such institutions of higher education.CommentsClose CommentsPermalink





‘(2) GRANT PERIOD- A grant awarded under this section shall be awarded for a period of 3 years.’; andCommentsClose CommentsPermalink





(4) in subsection (c)--CommentsClose CommentsPermalink





(A) in paragraph (1)--CommentsClose CommentsPermalink





(i) by amending the header to read as follows: ‘MODEL PROGRAM REQUIRED ACTIVITIES’; andCommentsClose CommentsPermalink





(ii) in the matter preceding subparagraph (A), by striking ‘under this section’ and inserting ‘for the purpose described in subsection (b)(1)(A)’;CommentsClose CommentsPermalink





(B) by redesignating paragraph (2) as paragraph (3); andCommentsClose CommentsPermalink





(C) by inserting after paragraph (1) the following:CommentsClose CommentsPermalink





‘(2) VETERANS RESOURCE OFFICER REQUIRED ACTIVITIES- An institution of higher education receiving a grant for the purpose described in subsection (b)(1)(B) shall use such grant to hire a Veterans Resource Officer whose duties shall include--CommentsClose CommentsPermalink





‘(A) serving as a liaison between--CommentsClose CommentsPermalink





‘(i) veteran students;CommentsClose CommentsPermalink





‘(ii) the faculty and staff of the institution;CommentsClose CommentsPermalink





‘(iii) local facilities of the Department of Veterans Affairs; andCommentsClose CommentsPermalink





‘(iv) mental healthcare providers at the Department of Veterans Affairs to ensure that veteran students are referred to such providers if needed; andCommentsClose CommentsPermalink





‘(B) organizing and advising veteran student organizations and hosting veterans-oriented group functions on campus;CommentsClose CommentsPermalink





‘(C) distributing news and information to all veteran students, including through maintaining newsletters and listserves; andCommentsClose CommentsPermalink





‘(D) assisting in the training of Department of Veterans Affairs certifying officials, when applicable.’.CommentsClose CommentsPermalink

SEC. 107. OFFICER DANIEL FAULKNER CHILDREN OF FALLEN HEROES SCHOLARSHIP.

(a) Short Title- This section may be cited as the ‘Officer Daniel Faulkner Children of Fallen Heroes Scholarship Act of 2009’.CommentsClose CommentsPermalink





(b) Calculation of Eligibility- Section 473(b) (20 U.S.C. 1087mm(b)(2)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2)--CommentsClose CommentsPermalink





(A) in the matter preceding subparagraph (A), by inserting ‘(in the case of a student who meets the requirement of subparagraph (B)(i)), or academic year 2010-2011 (in the case of a student who meets the requirement of subparagraph (B)(ii)),’ after ‘academic year 2009-2010’; andCommentsClose CommentsPermalink





(B) by amending subparagraph (B) to read as follows:CommentsClose CommentsPermalink





‘(B) whose parent or guardian was--CommentsClose CommentsPermalink





‘(i) a member of the Armed Forces of the United States and died as a result of performing military service in Iraq or Afghanistan after September 11, 2001; orCommentsClose CommentsPermalink





‘(ii) was actively serving as a public safety officer and died in the line of duty while performing as a public safety officer; and’;CommentsClose CommentsPermalink





(2) in paragraph (3)--CommentsClose CommentsPermalink





(A) by striking ‘Notwithstanding’ and inserting the following:CommentsClose CommentsPermalink





‘(A) ARMED FORCES- Notwithstanding’;CommentsClose CommentsPermalink





(B) by striking ‘paragraph (2)’ and inserting ‘subparagraphs (A), (B)(i), and (C) of paragraph (2)’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(B) PUBLIC SAFETY OFFICERS- Notwithstanding any other provision of law, unless the Secretary establishes an alternate method to adjust the expected family contribution, a financial aid administrator shall adjust the expected family contribution in accordance with this subsection for each student who meets the requirements of subparagraphs (A), (B)(ii), and (C) of paragraph (2).’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(4) TREATMENT OF PELL AMOUNT- Notwithstanding section 1212 of the Omnibus Crime Control and Safe Streets Act of 1968, in the case of a student who receives an increased Federal Pell Grant amount under this section, the total amount of such Federal Pell Grant, including the increase under subparagraph (A), shall not be considered in calculating that student’s educational assistance benefits under the Public Safety Officer’s Benefits program.CommentsClose CommentsPermalink





‘(5) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink





‘(A) the term ‘public safety officer’ means an individual serving a public agency in an official capacity, with or without compensation, as a law enforcement officer, as a firefighter, or as a member of a rescue squad or ambulance crew;CommentsClose CommentsPermalink





‘(B) the term ‘law enforcement officer’ means an individual who--CommentsClose CommentsPermalink





‘(i) is authorized by law to engage in or supervise the prevention, detection, investigation, or prosecution of, or the incarceration of any person for, any violation of law; andCommentsClose CommentsPermalink





‘(ii) has statutory powers of arrest or apprehension;CommentsClose CommentsPermalink





‘(C) the term ‘firefighter’ means an individual who is trained in the suppression of fire or hazardous-materials response and has the legal authority to engage in these duties;CommentsClose CommentsPermalink





‘(D) the term ‘member of a rescue squad or ambulance crew’ means an individual who is an officially recognized or designated public employee member of a rescue squad or ambulance crew; andCommentsClose CommentsPermalink





‘(E) the term ‘public agency’ means the United States, any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Commonwealth of the Northern Mariana Islands, any territory or possession of the United States, or any unit of local government, department, agency, or instrumentality of any of the foregoing, and the Amtrak Police and Federal Reserve Police departments.’.CommentsClose CommentsPermalink

SEC. 108. TEACHER EXCELLENCE.

(a) Establishment- The Secretary of Education may make grants to local educational agencies for the purpose of improving teacher excellence in public elementary and secondary schools.CommentsClose CommentsPermalink





(b) Use of Funds- Grants under this section shall be used for the establishment, expansion, or improvement of--CommentsClose CommentsPermalink





(1) professional development activities that are aligned to the curriculum and student academic needs;CommentsClose CommentsPermalink





(2) mentoring and induction programs for new teachers and principals; orCommentsClose CommentsPermalink





(3) career ladders that allow teachers to take on new professional roles, such as career teachers, mentor teachers, and master teachers.CommentsClose CommentsPermalink





(c) Application- A local educational agency desiring a grant under this section shall submit to the Secretary of Education an application at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.CommentsClose CommentsPermalink





(d) Authorization of Appropriations- There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2010 and each of the 5 succeeding fiscal years.CommentsClose CommentsPermalink

Subtitle B--Student Financial Aid Form SimplificationCommentsClose CommentsPermalink

SEC. 121. GENERAL EFFECTIVE DATE.

Except as otherwise provided in this subtitle, amendments made by this subtitle shall be effective with respect to determinations of need for assistance under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) for award years beginning on or after July 1, 2011.CommentsClose CommentsPermalink

SEC. 122. TREATMENT OF ASSETS IN NEED ANALYSIS.

(a) Amount of Need- Section 471 (20 U.S.C. 1087kk) is amended--CommentsClose CommentsPermalink





(1) by striking ‘Except’ and inserting the following:CommentsClose CommentsPermalink





‘(a) In General- Except’;CommentsClose CommentsPermalink





(2) by inserting ‘and subject to subsection (b)’ after ‘therein’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(b) Asset Cap for Need-based Aid- Notwithstanding any other provision of this title, a student shall not be eligible to receive a Federal Pell Grant or a Federal Direct Stafford Loan under this title if--CommentsClose CommentsPermalink





‘(1) in the case of a dependent student, the combined net assets of the student and the student’s parents are equal to an amount greater than $150,000 (or a successor amount prescribed by the Secretary under section 478(c)); orCommentsClose CommentsPermalink





‘(2) in the case of an independent student, the net assets of the student (and the student’s spouse, if applicable) are equal to an amount greater than $150,000 (or a successor amount prescribed by the Secretary under section 478(c)).’.CommentsClose CommentsPermalink





(b) Data Elements- Section 474(b) (20 U.S.C. 1087nn(b)) is amended--CommentsClose CommentsPermalink





(1) by striking paragraph (4); andCommentsClose CommentsPermalink





(2) by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively.CommentsClose CommentsPermalink





(c) Dependent Students- Section 475 (20 U.S.C. 1087oo) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) in paragraph (1)--CommentsClose CommentsPermalink





(i) by striking ‘adjusted’; andCommentsClose CommentsPermalink





(ii) by inserting ‘and’ after the semicolon;CommentsClose CommentsPermalink





(B) in paragraph (2), by striking ‘; and’ and inserting a period; andCommentsClose CommentsPermalink





(C) by striking paragraph (3);CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) in the header, by striking ‘Adjusted’;CommentsClose CommentsPermalink





(B) in the matter preceding paragraph (1), by striking ‘adjusted’;CommentsClose CommentsPermalink





(C) by striking paragraph (1);CommentsClose CommentsPermalink





(D) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively;CommentsClose CommentsPermalink





(E) in paragraph (1) (as redesignated by subparagraph (D) of this paragraph), by striking ‘adjusted’; andCommentsClose CommentsPermalink





(F) in paragraph (2) (as redesignated by subparagraph (D) of this paragraph), by striking ‘paragraph (2)’ and inserting ‘paragraph (1)’;CommentsClose CommentsPermalink





(3) by repealing subsection (d);CommentsClose CommentsPermalink





(4) in subsection (e)--CommentsClose CommentsPermalink





(A) by striking ‘The adjusted available’ and inserting ‘The available’;CommentsClose CommentsPermalink





(B) by striking ‘to as ‘AAI’)’ and inserting ‘to as ‘AI’)’;CommentsClose CommentsPermalink





(C) by striking ‘From Adjusted Available Income (AAI)’ and inserting ‘From Available Income (AI)’; andCommentsClose CommentsPermalink





(D) in the table--CommentsClose CommentsPermalink





(i) by striking ‘If AAI’ and inserting ‘If AI’; andCommentsClose CommentsPermalink





(ii) by striking ‘of AAI’ each place it appears and inserting ‘of AI’;CommentsClose CommentsPermalink





(5) in subsection (f)--CommentsClose CommentsPermalink





(A) by striking ‘and assets’ each place it appears;CommentsClose CommentsPermalink





(B) in paragraph (2)(B), by striking ‘or assets’; andCommentsClose CommentsPermalink





(C) in paragraph (3)--CommentsClose CommentsPermalink





(i) by striking ‘are taken into’ and inserting ‘is taken into’; andCommentsClose CommentsPermalink





(ii) by striking ‘adjusted’;CommentsClose CommentsPermalink





(6) in subsection (g)(6), by striking ‘exceeds the sum of’ and all that follows and inserting ‘exceeds the parents’ total income (as defined in section 480).’;CommentsClose CommentsPermalink





(7) by repealing subsection (h); andCommentsClose CommentsPermalink





(8) in subsection (i), by striking ‘adjusted’ each place it appears.CommentsClose CommentsPermalink





(d) Family Contribution for Independent Students Without Dependents Other Than a Spouse- Section 476 (20 U.S.C. 1087pp) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) by striking paragraph (1);CommentsClose CommentsPermalink





(B) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively;CommentsClose CommentsPermalink





(C) in paragraph (1) (as redesignated by subparagraph (B)), by striking ‘the sum resulting under paragraph (1)’ and inserting ‘the family’s contribution from available income (determined in accordance with subsection (b))’; andCommentsClose CommentsPermalink





(D) in paragraph (2)(A) (as redesignated by subparagraph (B)), by striking ‘paragraph (2)’ and inserting ‘paragraph (1)’;CommentsClose CommentsPermalink





(2) by repealing subsection (c); andCommentsClose CommentsPermalink





(3) in subsection (d)--CommentsClose CommentsPermalink





(A) by striking ‘and assets’; andCommentsClose CommentsPermalink





(B) by striking ‘or assets’.CommentsClose CommentsPermalink





(e) Family Contribution for Independent Students With Dependents Other Than a Spouse- Section 477 (20 U.S.C. 1087qq) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) by striking paragraph (1);CommentsClose CommentsPermalink





(B) by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively;CommentsClose CommentsPermalink





(C) in paragraph (1) (as redesignated by subparagraph (B)), by striking ‘such adjusted available income’ and inserting ‘the family’s available income (determined in accordance with subsection (b))’;CommentsClose CommentsPermalink





(D) in paragraph (2) (as redesignated by subparagraph (B)), by striking ‘paragraph (2)’ and inserting ‘paragraph (1)’; andCommentsClose CommentsPermalink





(E) in paragraph (3)(A) (as redesignated by subparagraph (B)), by striking ‘paragraph (3)’ and inserting ‘paragraph (2)’;CommentsClose CommentsPermalink





(2) by repealing subsection (c); andCommentsClose CommentsPermalink





(3) in subsection (d)--CommentsClose CommentsPermalink





(A) by striking ‘The adjusted available’ and inserting ‘The available’;CommentsClose CommentsPermalink





(B) by striking ‘to as ‘AAI’)’ and inserting ‘to as ‘AI’)’;CommentsClose CommentsPermalink





(C) by striking ‘From Adjusted Available Income (AAI)’ and inserting ‘From Available Income (AI)’; andCommentsClose CommentsPermalink





(D) in the table--CommentsClose CommentsPermalink





(i) by striking ‘If AAI’ and inserting ‘If AI’; andCommentsClose CommentsPermalink





(ii) by striking ‘of AAI’ each place it appears and inserting ‘of AI’; andCommentsClose CommentsPermalink





(E) in subsection (e)--CommentsClose CommentsPermalink





(i) by striking ‘and assets’; andCommentsClose CommentsPermalink





(ii) by striking ‘or assets’.CommentsClose CommentsPermalink





(f) Regulations; Updated Tables- Section 478 (20 U.S.C. 1087rr) is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by inserting ‘or amounts, as the case may be,’ after ‘tables’ each place the term appears;CommentsClose CommentsPermalink





(2) by amending subsection (c) to read as follows:CommentsClose CommentsPermalink





‘(c) Asset Cap for Need-based Aid- For each award year after award year 2011-2012, the Secretary shall publish in the Federal Register a revised net asset cap for the purposes of section 471(b). Such revised cap shall be determined by increasing the dollar amount in such section by a percentage equal to the estimated percentage change in the Consumer Price Index (as determined by the Secretary) between December 2010 and the December preceding the beginning of such award year, and rounding the result to the nearest $5.’;CommentsClose CommentsPermalink





(3) by repealing subsection (d); andCommentsClose CommentsPermalink





(4) in subsection (e), by striking ‘adjusted’ both places it appears.CommentsClose CommentsPermalink

SEC. 123. CHANGES TO TOTAL INCOME; AID ELIGIBILITY.

(a) Definition of Untaxed Income and Benefits- Section 480(b)(1) (20 U.S.C. 1087vv(b)(1)), as amended by the Higher Education Opportunity Act (Public Law 110-315), is amended--CommentsClose CommentsPermalink





(1) by striking subparagraphs (A), (B), (C), (E), (F), and (I);CommentsClose CommentsPermalink





(2) by redesignating subparagraphs (D), (G), and (H) as subparagraphs (A), (B), and (C), respectively;CommentsClose CommentsPermalink





(3) in subparagraph (B) (as redesignated by paragraph (2)), by inserting ‘and’ after the semicolon; andCommentsClose CommentsPermalink





(4) in subparagraph (C) (as redesignated by paragraph (2)), by striking ‘; and’ and inserting a period.CommentsClose CommentsPermalink





(b) Definition of Assets- Section 480(f)(2) (20 U.S.C. 1087vv(f)(2)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘or’ at the end of subparagraph (B);CommentsClose CommentsPermalink





(2) by striking the period at the end of subparagraph (C) and inserting ‘; or’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(D) an employee pension benefit plan (as defined in section 3(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(2))).’.CommentsClose CommentsPermalink





(c) Financial Administrator Discretion- Section 479A(b) (20 U.S.C. 1087tt) is amended in the subsection heading, by striking ‘to Assets’.CommentsClose CommentsPermalink





(d) Suspension of Eligibility for Drug-related Offenses- Section 484(r)(1) (20 U.S.C. 1091(r)(1)) is amended to read as follows:CommentsClose CommentsPermalink





‘(1) IN GENERAL- A student who is convicted of any offense under any Federal or State law involving the 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 subparagraphs:CommentsClose CommentsPermalink





‘(A) For a first offense, the period of ineligibility shall be 2 years.CommentsClose CommentsPermalink





‘(B) For a second offense, the period of ineligibility shall be indefinite.’.CommentsClose CommentsPermalink

TITLE II--STUDENT LOAN REFORMCommentsClose CommentsPermalink

Subtitle A--Stafford Loan ReformCommentsClose CommentsPermalink

SEC. 201. FEDERAL FAMILY EDUCATION LOAN APPROPRIATIONS.

Section 421 (20 U.S.C. 1071) is amended--CommentsClose CommentsPermalink





(1) in subsection (b), in the matter following paragraph (6), by inserting ‘, except that no sums may be expended after June 30, 2010, with respect to loans under this part for which the first disbursement would be made after such date’ after ‘expended’; andCommentsClose CommentsPermalink





(2) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(d) Termination of Authority To Make or Insure New Loans- Notwithstanding paragraphs (1) through (6) of subsection (b) or any other provision of law--CommentsClose CommentsPermalink





‘(1) no new loans (including consolidation loans) may be made or insured under this part after June 30, 2010; andCommentsClose CommentsPermalink





‘(2) no funds are authorized to be appropriated, or may be expended, under this Act or any other Act to make or insure loans under this part (including consolidation loans) for which the first disbursement would be made after June 30, 2010,CommentsClose CommentsPermalink





except as expressly authorized by an Act of Congress enacted after the date of enactment of the Student Aid and Fiscal Responsibility Act of 2009.’.CommentsClose CommentsPermalink

SEC. 202. SCOPE AND DURATION OF FEDERAL LOAN INSURANCE PROGRAM.

Section 424(a) (20 U.S.C. 1074(a)) is amended by striking ‘September 30, 1976,’ and all that follows and inserting ‘September 30, 1976, for each of the succeeding fiscal years ending prior to October 1, 2009, and for the period from October 1, 2009, to June 30, 2010, for loans first disbursed on or before June 30, 2010.’.CommentsClose CommentsPermalink

SEC. 203. APPLICABLE INTEREST RATES.

Section 427A(l) (20 U.S.C. 1077a(l)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by inserting ‘and before July 1, 2010,’ after ‘July 1, 2006,’;CommentsClose CommentsPermalink





(2) in paragraph (2), by inserting ‘and before July 1, 2010,’ after ‘July 1, 2006,’;CommentsClose CommentsPermalink





(3) in paragraph (3), by inserting ‘and that was disbursed before July 1, 2010,’ after ‘July 1, 2006,’; andCommentsClose CommentsPermalink





(4) in paragraph (4)--CommentsClose CommentsPermalink





(A) in the matter preceding subparagraph (A), by striking ‘July 1, 2012’ and inserting ‘July 1, 2010’; andCommentsClose CommentsPermalink





(B) by repealing subparagraphs (D) and (E).CommentsClose CommentsPermalink

SEC. 204. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

(a) Higher Education Act of 1965- Section 428 (20 U.S.C. 1078) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) in paragraph (1), in the matter preceding subparagraph (A), by inserting ‘for which the first disbursement is made before July 1, 2010, and’ after ‘eligible institution’; andCommentsClose CommentsPermalink





(B) in paragraph (5), by striking ‘September 30, 2014,’ and all that follows through the period and inserting ‘June 30, 2010.’;CommentsClose CommentsPermalink





(2) in subsection (b)(1)--CommentsClose CommentsPermalink





(A) in subparagraph (G)(ii), by inserting ‘and before July 1, 2010,’ after ‘July 1, 2006,’; andCommentsClose CommentsPermalink





(B) in subparagraph (H)(ii), by inserting ‘and that are first disbursed before July 1, 2010,’ after ‘July 1, 2006,’;CommentsClose CommentsPermalink





(3) in subsection (f)(1)(A)(ii)--CommentsClose CommentsPermalink





(A) by striking ‘during fiscal years beginning’; andCommentsClose CommentsPermalink





(B) by inserting ‘and first disbursed before July 1, 2010,’ after ‘October 1, 2003,’; andCommentsClose CommentsPermalink





(4) in subsection (j)(1), by inserting ‘, before July 1, 2010,’ after ‘section 435(d)(1)(D) of this Act shall’.CommentsClose CommentsPermalink





(b) College Cost Reduction and Access Act- Section 303 of the College Cost Reduction and Access Act (Public Law 110-84) is repealed.CommentsClose CommentsPermalink

SEC. 205. FEDERAL PLUS LOANS.

Section 428B(a)(1) (20 U.S.C. 1078-2(a)(1)) is amended by striking ‘A graduate’ and inserting ‘Prior to July 1, 2010, a graduate’.CommentsClose CommentsPermalink

SEC. 206. FEDERAL CONSOLIDATION LOAN.

(a) Amendments- Section 428C (20 U.S.C. 1078-3) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)(4)(A), by inserting ‘, and first disbursed before July 1, 2010’ after ‘under this part’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) in paragraph (1)(E), by inserting before the semicolon ‘, and before July 1, 2010’; andCommentsClose CommentsPermalink





(B) in paragraph (5), by striking ‘In the event that’ and inserting ‘If, before July 1, 2010,’;CommentsClose CommentsPermalink





(3) in subsection (c)(1)--CommentsClose CommentsPermalink





(A) in subparagraph (A)(ii), by inserting ‘and that is disbursed before July 1, 2010,’ after ‘2006,’; andCommentsClose CommentsPermalink





(B) in subparagraph (C), by inserting ‘and first disbursed before July 1, 2010,’ after ‘1994,’; andCommentsClose CommentsPermalink





(4) in subsection (e), by striking ‘September 30, 2014.’ and inserting ‘June 30, 2010. No loan may be made under this section for which the first disbursement would be on or after July 1, 2010.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by subsection (a)(1)(A) shall be effective at the close of June 30, 2010.CommentsClose CommentsPermalink

SEC. 207. UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE-INCOME BORROWERS.

Section 428H (20 U.S.C. 1078-8) is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by inserting ‘that are first disbursed before July 1, 2010,’ after ‘under this part’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) by striking ‘Any student’ and inserting ‘Prior to July 1, 2010, any student’; andCommentsClose CommentsPermalink





(B) by inserting ‘for which the first disbursement is made before such date’ after ‘unsubsidized Federal Stafford Loan’; andCommentsClose CommentsPermalink





(3) in subsection (h), by inserting ‘and that are first disbursed before July 1, 2010,’ after ‘July 1, 2006,’.CommentsClose CommentsPermalink

SEC. 208. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.

Section 428L(b)(2)(A) (20 U.S.C. 1078-12(b)(2)(A)) is amended--CommentsClose CommentsPermalink





(1) by amending clause (i) to read as follows:CommentsClose CommentsPermalink





‘(i) subject to clause (ii)--CommentsClose CommentsPermalink





‘(I) a loan made, insured, or guaranteed under this part, and that is first disbursed before July 1, 2010; orCommentsClose CommentsPermalink





‘(II) a loan made under part D or part E; and’; andCommentsClose CommentsPermalink





(2) in clause (ii)--CommentsClose CommentsPermalink





(A) by striking ‘428C or 455(g)’ and inserting ‘428C that is disbursed before July 1, 2010, or section 455(g)’; andCommentsClose CommentsPermalink





(B) in subclause (II), by inserting ‘for which the first disbursement is made before July 1, 2010’ after ‘or 428H’.CommentsClose CommentsPermalink

SEC. 209. SPECIAL ALLOWANCES.

Section 438 (20 U.S.C. 1087-1) is amended--CommentsClose CommentsPermalink





(1) in subsection (b)(2)(I)--CommentsClose CommentsPermalink





(A) in the header, by inserting ‘, AND BEFORE JULY 1, 2010’ after ‘2000’;CommentsClose CommentsPermalink





(B) in clause (i), by inserting ‘and before July 1, 2010,’ after ‘2000,’;CommentsClose CommentsPermalink





(C) in clause (ii)(II), by inserting ‘and before July 1, 2010,’ after ‘2006,’;CommentsClose CommentsPermalink





(D) in clause (iii), by inserting ‘and before July 1, 2010,’ after ‘2000,’;CommentsClose CommentsPermalink





(E) in clause (iv), by inserting ‘and that is disbursed before July 1, 2010,’ after ‘2000,’;CommentsClose CommentsPermalink





(F) in clause (v)(I), by inserting ‘and before July 1, 2010,’ after ‘2006,’; andCommentsClose CommentsPermalink





(G) in clause (vi)--CommentsClose CommentsPermalink





(i) in the header, by inserting ‘, AND BEFORE JULY 1, 2010’ after ‘2007’; andCommentsClose CommentsPermalink





(ii) in the matter preceding subclause (I), by inserting ‘and before July 1, 2010,’ after ‘2007,’;CommentsClose CommentsPermalink





(2) in subsection (c)--CommentsClose CommentsPermalink





(A) in paragraph (2)(B)--CommentsClose CommentsPermalink





(i) in clause (iii), by inserting ‘and’ after the semicolon;CommentsClose CommentsPermalink





(ii) in clause (iv), by striking ‘; and’ and inserting a period; andCommentsClose CommentsPermalink





(iii) by striking clause (v); andCommentsClose CommentsPermalink





(B) in paragraph (6), by inserting ‘and first disbursed before July 1, 2010,’ after ‘1992,’; andCommentsClose CommentsPermalink





(3) in subsection (d)(2)(B), by inserting ‘, and before July 1, 2010’ after ‘2007’.CommentsClose CommentsPermalink

SEC. 210. REVISED SPECIAL ALLOWANCE CALCULATION.

(a) Revised Calculation Rule- Section 438(b)(2)(I) of the Higher Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(I)) is amended by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(vii) REVISED CALCULATION RULE TO REFLECT FINANCIAL MARKET CONDITIONS-CommentsClose CommentsPermalink





‘(I) CALCULATION BASED ON LIBOR- For the calendar quarter beginning on October 1, 2009, and each subsequent calendar quarter, in computing the special allowance paid pursuant to this subsection with respect to loans described in subclause (II), clause (i)(I) of this subparagraph shall be applied by substituting ‘of the 1-month London Inter Bank Offered Rate (LIBOR) for United States dollars in effect for each of the days in such quarter as compiled and released by the British Bankers Association’ for ‘of the quotes of the 3-month commercial paper (financial) rates in effect for each of the days in such quarter as reported by the Federal Reserve in Publication H-15 (or its successor) for such 3-month period’.CommentsClose CommentsPermalink





‘(II) LOANS ELIGIBLE FOR LIBOR-BASED CALCULATION- The special allowance paid pursuant to this subsection shall be calculated as described in subclause (I) with respect to special allowance payments for the 3-month period ending December 31, 2009, and each succeeding 3-month period, on loans for which the first disbursement is made--CommentsClose CommentsPermalink

‘(aa) on or after the date of enactment of the Student Aid and Fiscal Responsibility Act of 2009, and before July 1, 2010; orCommentsClose CommentsPermalink

‘(bb) on or after January 1, 2000, and before the date of enactment of the Student Aid and Fiscal Responsibility Act of 2009, if, not later than the last day of the second full fiscal quarter after the date of enactment of such Act, the holder of the loan (or, if the holder acts as eligible lender trustee for the beneficial owner of the loan, the beneficial owner of the loan), affirmatively and permanently waives all contractual, statutory or other legal rights to a special allowance paid pursuant to this subsection that is calculated using the formula in effect at the time the loans were first disbursed.CommentsClose CommentsPermalink

‘(III) TERMS OF WAIVER-CommentsClose CommentsPermalink

‘(aa) IN GENERAL- A waiver pursuant to subclause (II)(bb) shall be in a form (printed or electronic) prescribed by the Secretary, and shall be applicable to--CommentsClose CommentsPermalink

‘(AA) all loans described in such subclause that the lender holds solely in its own right under any lender identification number associated with the holder (pursuant to section 487B);CommentsClose CommentsPermalink

‘(BB) all loans described in such subclause for which the beneficial owner has the authority to make an election of a waiver under such subclause, regardless of the lender identification number associated with the loan or the lender that holds the loan as eligible lender trustee on behalf of such beneficial owner; andCommentsClose CommentsPermalink

‘(CC) all future calculations of the special allowance on loans that, on the date of such waiver, are loans described in subitem (AA) or (BB), or that, after such date, become loans described in subitem (AA) or (BB).CommentsClose CommentsPermalink

‘(bb) EXCEPTIONS- Any waiver pursuant to subclause (II)(bb) that is elected for loans described in subitem (AA) or (BB) of item (aa) shall not apply to any loan described in such subitem for which the lender or beneficial owner of the loan demonstrates to the satisfaction of the Secretary that--CommentsClose CommentsPermalink

‘(AA) in accordance with an agreement entered into before the date of enactment of the Student Aid and Fiscal Responsibility Act of 2009 by which such lender or owner is governed and that applies to such loans, such lender or owner is not legally permitted to make an election of such waiver with respect to such loans without the approval of one or more third parties with an interest in the loans, and that the lender or owner followed all available options under such agreement to obtain such approval, and was unable to do so; orCommentsClose CommentsPermalink

‘(BB) such lender or beneficial owner presented the proposal of electing such a waiver applicable to such loans associated with an obligation rated by a nationally recognized statistical rating organization (as defined in section 3(a)(62) of the Securities Exchange Act of 1934), and such rating organization provided a written opinion that the agency would downgrade the rating applicable to such obligation if the lender or owner elected such a waiver.CommentsClose CommentsPermalink

‘(IV) Participant’S YIELD- For the calendar quarter beginning on October 1, 2009, and each subsequent calendar quarter, the Secretary’s participant yield in any loan in which the Secretary has purchased a participation interest and for which the first disbursement is made on or after January 1, 2000, and before October 1, 2009, shall be determined by using the LIBOR-based rate described in subclause (I) as the substitute rate (for the commercial paper rate) referred to in the participation agreement between the Secretary and such lender.’.CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 438(b)(2)(I) (20 U.S.C. 1087-1(b)(2)(I)) is further amended--CommentsClose CommentsPermalink





(1) in clause (i)(II), by striking ‘such average bond equivalent rate’ and inserting ‘the rate determined under subclause (I)’; andCommentsClose CommentsPermalink





(2) in clause (v)(III) by striking ‘(iv), and (vi)’ and inserting ‘(iv), (vi), and (vii)’.CommentsClose CommentsPermalink

SEC. 211. ORIGINATION OF DIRECT LOANS AT INSTITUTIONS LOCATED OUTSIDE THE UNITED STATES.

(a) Loans for Students Attending Institutions Located Outside the United States- Section 452 (20 U.S.C. 1087b) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(d) Institutions Located Outside the United States- Loan funds for students (and parents of students) attending institutions located outside the United States shall be disbursed through a financial institution located in the United States and designated by the Secretary to serve as the agent of such institutions with respect to the receipt of the disbursements of such loan funds and the transfer of such funds to such institutions. To be eligible to receive funds under this part, an otherwise eligible institution located outside the United States shall make arrangements, subject to regulations by the Secretary, with the agent designated by the Secretary under this subsection to receive funds under this part.’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) AMENDMENTS- Section 102 (20 U.S.C. 1002), as amended by section 102 of the Higher Education Opportunity Act (Public Law 110-315) and section 101 of Public Law 111-39, is amended--CommentsClose CommentsPermalink





(A) by striking ‘part B’ each place it appears and inserting ‘part D’;CommentsClose CommentsPermalink





(B) in subsection (a)(1)(C), by inserting ‘, consistent with the requirements of section 452(d)’ before the period at the end; andCommentsClose CommentsPermalink





(C) in subsection (a)(2)(A)--CommentsClose CommentsPermalink





(i) in the matter preceding clause (i), by striking ‘made, insured, or guaranteed’ and inserting ‘made’; andCommentsClose CommentsPermalink





(ii) in clause (iii)--CommentsClose CommentsPermalink





(I) in subclause (III), by striking ‘only Federal Stafford’ and all that follows through ‘section 428B’ and inserting ‘only Federal Direct Stafford Loans under section 455(a)(2)(A), Federal Direct Unsubsidized Stafford Loans under section 455(a)(2)(D), or Federal Direct PLUS Loans under section 455(a)(2)(B)’; andCommentsClose CommentsPermalink





(II) in subclause (V), by striking ‘a Federal Stafford’ and all that follows through ‘section 428B’ and inserting ‘a Federal Direct Stafford Loan under section 455(a)(2)(A), a Federal Direct Unsubsidized Stafford Loan under section 455(a)(2)(D), or a Federal Direct PLUS Loan under section 455(a)(2)(B)’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendments made by subparagraph (C) of paragraph (1) shall be effective as if enacted as part of section 102(a)(1) of the Higher Education Opportunity Act, in accordance with section 102(e) of such Act, as amended by section 101(a)(2) of Public Law 111-39.CommentsClose CommentsPermalink

SEC. 212. AGREEMENTS WITH INSTITUTIONS.

Section 454 (20 U.S.C. 1087d) is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by striking paragraph (4) and redesignating the succeeding paragraphs accordingly; andCommentsClose CommentsPermalink





(2) in subsection (b)(2), by striking ‘(5), (6), and (7)’ and inserting ‘(5), and (6)’.CommentsClose CommentsPermalink

SEC. 213. TERMS AND CONDITIONS OF LOANS.

(a) Amendments- Section 455 (20 U.S.C. 1087e) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)(1), by inserting ‘, and first disbursed on June 30, 2010,’ before ‘under sections 428’; andCommentsClose CommentsPermalink





(2) in subsection (g)--CommentsClose CommentsPermalink





(A) by inserting ‘, including any loan made under part B and first disbursed before July 1, 2010’ after ‘section 428C(a)(4)’; andCommentsClose CommentsPermalink





(B) by striking the third sentence.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a)(1) shall apply with respect to loans first disbursed under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) on or after July 1, 2010.CommentsClose CommentsPermalink

SEC. 214. CONTRACTS.

Section 456 (20 U.S.C. 1087f) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) in paragraph (1)--CommentsClose CommentsPermalink





(i) in the header, by striking ‘IN GENERAL’ and inserting ‘AWARDING OF CONTRACTS’;CommentsClose CommentsPermalink





(ii) by striking ‘The Secretary’ and inserting the following:CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary’; andCommentsClose CommentsPermalink





(iii) by adding at the end the following:CommentsClose CommentsPermalink





‘(B) AWARDING CONTRACTS FOR SERVICING LOANS- The Secretary shall, if practicable, award multiple contracts, through a competitive bidding process, to entities, including eligible not-for-profit servicers, to service loans originated under this part. The competitive bidding process shall take into account price, servicing capacity, and capability, and may take into account the capacity and capability to provide default aversion activities and outreach services.CommentsClose CommentsPermalink





‘(C) JOB RETENTION INCENTIVE PAYMENT- (i) In a contract with an entity under subparagraph (B) for the servicing of loans, the Secretary shall provide a job retention incentive payment, in an amount and manner determined by the Secretary, if such entity agrees to give priority for hiring for positions created as a result of such a contract to those geographical locations located in the United States at which the entity performed student loan origination or servicing activities under the Federal Family Education Loan Program as of the date of enactment of the Student Aid and Fiscal Responsibility Act of 2009.CommentsClose CommentsPermalink





‘(ii) In determining the allocation of loans to be serviced by an entity awarded such a contract, the Secretary shall consider the retention of highly qualified employees (employed in the United States) of such entity a positive factor in determining such allocation.’;CommentsClose CommentsPermalink





(B) in paragraph (2)--CommentsClose CommentsPermalink





(i) in the first sentence, by inserting ‘, including eligible not-for-profit servicers,’ after ‘The entities’;CommentsClose CommentsPermalink





(ii) by amending the third sentence to read as follows: ‘The entities with which the Secretary may enter into such contracts shall include, where practicable, agencies with agreements with the Secretary under sections 428(b) and (c) on the date of the enactment of the Student Aid and Fiscal Responsibility Act of 2009, nonprofit subsidiaries of such an agency, and eligible not-for-profit servicers, if such agencies, subsidiaries, or servicers meet the qualifications as determined by the Secretary under this subsection and if those agencies, subsidiaries, or servicers have such experience and demonstrated effectiveness.’; andCommentsClose CommentsPermalink





(iii) by striking the last sentence and inserting the following: ‘In awarding contracts to such agencies, subsidiaries, and such eligible not-for-profit servicers, the Secretary shall, to the extent practicable and consistent with the purposes of this part, give special consideration to such agencies, subsidiaries, and servicers with a history of high quality performance and demonstrated integrity in conducting operations with institutions of higher education and the Secretary.’;CommentsClose CommentsPermalink





(C) by redesignating paragraph (3) as paragraph (4), and by inserting in such paragraph ‘, or of any eligible not-for-profit servicer to enter into an agreement for the purposes of this section as a member of a consortium of such entities’ before the period at the end; andCommentsClose CommentsPermalink





(D) by inserting after paragraph (2) the following new paragraph:CommentsClose CommentsPermalink





‘(3) SERVICING BY ELIGIBLE NOT-FOR-PROFIT SERVICERS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Notwithstanding any other provision of this section, in each State where at least one eligible not-for-profit servicer has its principal place of business, the Secretary shall contract with each such servicer to service loans originated under this part on behalf of borrowers attending institutions located within such State, provided that the servicer demonstrates that it meets the standards for servicing Federal assets and providing quality service and agrees to service the loans at a competitive market rate, as determined by the Secretary. In determining such a competitive market rate, the Secretary shall set such rate so that (i) the rate is commercially reasonable in relation to the volume of loans being serviced by the eligible not-for-profit servicers, and (ii) in the Secretary’s judgment, the eligible not-for-profit servicers can reasonably provide any additional services, such as default aversion or outreach, provided for in the contracts awarded under this paragraph. Contracts awarded under this paragraph shall be subject to the same requirements for quality, performance, and accountability as contracts awarded under paragraph (2) for similar activities.CommentsClose CommentsPermalink





‘(B) ALLOCATIONS- (i) ONE SERVICER- In the case of a State with only one eligible not-for-profit servicer with a contract described in subparagraph (A), the Secretary shall, at a minimum, allocate to such servicer, each year and subject to such contract, the servicing rights for the lesser of--CommentsClose CommentsPermalink





‘(I) the loans of 100,000 borrowers (including borrowers who borrowed loans in a prior year that were serviced by the servicer) attending institutions located within the State; orCommentsClose CommentsPermalink





‘(II) the loans of all the borrowers attending institutions located within the State.CommentsClose CommentsPermalink





‘(ii) MULTIPLE SERVICERS- In the case of a State with more than one eligible not-for-profit servicer with a contract described in subparagraph (A), the Secretary shall, at a minimum, allocate to each such servicer, each year and subject to such contract, the servicing rights for the lesser of--CommentsClose CommentsPermalink





‘(I) the loans of 100,000 borrowers (including borrowers who borrowed loans in a prior year that were serviced by the servicer) attending institutions located within the State; orCommentsClose CommentsPermalink





‘(II) an equal share of the loans of all borrowers attending institutions located within the State, except the Secretary shall adjust such shares as necessary to ensure that the loans of any single borrower remain with a single servicer.CommentsClose CommentsPermalink





‘(iii) ADDITIONAL ALLOCATION- The Secretary may allocate additional servicing rights to an eligible not-for-profit servicer based on the performance of such servicer, as determined by the Secretary, including performance in the areas of customer service and default aversion.CommentsClose CommentsPermalink





‘(C) LOAN SERVICING RETENTION-CommentsClose CommentsPermalink





‘(i) IN GENERAL- In addition to any new loans allocated to a servicers under subparagraph (B)(ii), an eligible not-for-profit servicer shall retain the servicing of loans allocated to such servicer in previous years, except as provided in clause (ii), or as otherwise provided for in accordance with the terms of a contract under this paragraph.CommentsClose CommentsPermalink





‘(ii) TRANSFERS FOR MULTIPLE LOANS- Notwithstanding clause (i) and the allocations required by subparagraph (B), the Secretary may transfer loans among servicers who are awarded contracts to service loans pursuant to this section to ensure that the loans of any single borrower remain with a single servicer.’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) in the subsection header, by striking ‘Origination, Servicing, and Data Systems’ and inserting ‘Origination, Servicing, Delinquency Prevention and Default Aversion Services, Default Collections, Outreach, and Data Systems’;CommentsClose CommentsPermalink





(B) in the matter preceding paragraph (1), by striking ‘The Secretary may’ and inserting ‘(1) IN GENERAL- The Secretary may’;CommentsClose CommentsPermalink





(C) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), and moving such subparagraphs two ems to the right;CommentsClose CommentsPermalink





(D) in subparagraph (C) (as redesignated by subparagraph (C) of this paragraph), by striking ‘and’ after the semicolon;CommentsClose CommentsPermalink





(E) by redesignating subparagraph (D) (as redesignated by subparagraph (C) of this paragraph) as subparagraph (E);CommentsClose CommentsPermalink





(F) by inserting after subparagraph (C) (as so redesignated) the following new subparagraph:CommentsClose CommentsPermalink





‘(D) delinquency prevention and default aversion services, default collections, financial aid counseling, career and education counseling, financial literacy, guidance counselor and financial aid officer training services, and other outreach services; and’; andCommentsClose CommentsPermalink





(G) by adding at the end the following:CommentsClose CommentsPermalink





‘(2) Limitation- The Secretary may enter into contracts for the services described in paragraph (1)(D) with--CommentsClose CommentsPermalink





‘(A) agencies with agreements with the Secretary under subsections (b) and (c) of section 428 on the date of enactment of the Student Aid and Fiscal Responsibility Act of 2009, that are providing such services on such date and that meet the qualifications determined by the Secretary; orCommentsClose CommentsPermalink





‘(B) nonprofit subsidiaries of agencies described in subparagraph (A), if such subsidiaries were established, pursuant to State law, on or before January 1, 1998, and meet the qualifications determined by the Secretary.’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(c) Report to Congress- Not later than 5 years after the date of the enactment of the Student Aid and Fiscal Responsibility Act of 2009, the Secretary shall prepare and submit to the authorizing committees, a report evaluating the performance of all eligible not-for-profit servicers awarded a contract under this section to service loans originated under this part. Such report shall give consideration to--CommentsClose CommentsPermalink





‘(1) customer satisfaction of borrowers and institutions with respect to the loan servicing provided by the servicers;CommentsClose CommentsPermalink





‘(2) compliance with applicable regulations by the servicers; andCommentsClose CommentsPermalink





‘(3) the effectiveness of default aversion activities, and outreach services, including financial literacy programs, (if any), provided by the servicers.CommentsClose CommentsPermalink





‘(d) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) DEFAULT AVERSION ACTIVITIES- The term ‘default aversion activities’ means activities that are directly related to providing collection assistance to the Secretary on a delinquent loan, prior to the loan being legally in a default status.CommentsClose CommentsPermalink





‘(2) ELIGIBLE NOT-FOR-PROFIT SERVICER-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘eligible not-for-profit servicer’ means an entity--CommentsClose CommentsPermalink





‘(i) that is not owned or controlled in whole or in part by--CommentsClose CommentsPermalink





‘(I) a for profit entity; orCommentsClose CommentsPermalink





‘(II) a nonprofit entity having its principal place of business in another State; andCommentsClose CommentsPermalink





‘(ii) that--CommentsClose CommentsPermalink





‘(I) as of July 1, 2009--CommentsClose CommentsPermalink

‘(aa) meets the definition of an eligible not-for-profit holder under section 435(p), except that such term does not include eligible lenders described in paragraph (1)(D) of such section; andCommentsClose CommentsPermalink

‘(bb) was performing, or had entered into a contract with a third party servicer (as such term is defined in section 481(c)) who was performing, student loan servicing functions for loans made under part B of this title;CommentsClose CommentsPermalink

‘(II) notwithstanding subclause (I), as of July 1, 2009--CommentsClose CommentsPermalink

‘(aa) is the sole beneficial owner of a loan for which the special allowance rate is calculated under section 438(b)(2)(I)(vi)(II) because the loan is held by an eligible lender trustee that is an eligible not-for-profit holder as defined under section 435(p)(1)(D); andCommentsClose CommentsPermalink

‘(bb) was performing, or had entered into a contract with a third party servicer (as such term is defined in section 481(c)) who was performing, student loan servicing functions for loans made under part B of this title; orCommentsClose CommentsPermalink

‘(III) is an affiliated entity of an eligible not-for-profit servicer described in subclause (I) or (II) that--CommentsClose CommentsPermalink

‘(aa) directly employs, or will directly employ (on or before the date the entity begins servicing loans under a contract awarded by the Secretary pursuant to subsection (a)(3)(A)), the majority of individuals who perform borrower-specific student loan servicing functions; andCommentsClose CommentsPermalink

‘(bb) as of July 1, 2009, was performing, or had entered into a contract with a third party servicer (as such term is defined in section 481(c)) who was performing, student loan servicing functions for loans made under part B of this title.CommentsClose CommentsPermalink

‘(B) AFFILIATED ENTITY- For the purposes of subparagraph (A), the term ‘affiliated entity’--CommentsClose CommentsPermalink





‘(i) means an entity contracted to perform services for an eligible not-for-profit servicer that--CommentsClose CommentsPermalink





‘(I) is a nonprofit entity or is wholly owned by a nonprofit entity; andCommentsClose CommentsPermalink





‘(II) is not owned or controlled, in whole or in part, by--CommentsClose CommentsPermalink

‘(aa) a for-profit entity; orCommentsClose CommentsPermalink

‘(bb) an entity having its principal place of business in another State; andCommentsClose CommentsPermalink

‘(ii) may include an affiliated entity that is established by an eligible not-for-profit servicer after the date of enactment of the Student Aid and Fiscal Responsibility Act of 2009, if such affiliated entity is otherwise described in subparagraph (A)(ii)(III) and clause (i) of this subparagraph.CommentsClose CommentsPermalink





‘(3) OUTREACH SERVICES- The term ‘outreach services’ means programs offered to students and families, including programs delivered in coordination with institutions of higher education that--CommentsClose CommentsPermalink





‘(A) encourage--CommentsClose CommentsPermalink





‘(i) students to attend and complete a degree or certification program at an institution of higher education; andCommentsClose CommentsPermalink





‘(ii) students and families to obtain financial aid, but minimize the borrowing of education loans; andCommentsClose CommentsPermalink





‘(B) deliver a wide range of financial literacy and counseling tools to equip students with the information necessary to make prudent decisions concerning their educational success and financial well-being.’.CommentsClose CommentsPermalink

SEC. 215. INTEREST RATES.

Section 455(b)(7) (20 U.S.C. 1087e(b)(7)) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(E) REDUCED RATES FOR UNDERGRADUATE FDSL ON AND AFTER JULY 1, 2012- Notwithstanding the preceding paragraphs of this subsection and subparagraph (A) of this paragraph, for Federal Direct Stafford Loans made to undergraduate students for which the first disbursement is made on or after July 1, 2012, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to--CommentsClose CommentsPermalink





‘(i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plusCommentsClose CommentsPermalink





‘(ii) 2.5 percent,CommentsClose CommentsPermalink





except that such rate shall not exceed 6.8 percent.’.CommentsClose CommentsPermalink

SEC. 216. TECHNICAL ASSISTANCE TO INSTITUTIONS OF HIGHER EDUCATION.

Section 458(a) (20 U.S.C. 1087h(a)) is amended--CommentsClose CommentsPermalink





(1) by redesignating paragraph (5) as paragraph (6); andCommentsClose CommentsPermalink





(2) by inserting after paragraph (4) the following new paragraph:CommentsClose CommentsPermalink





‘(5) TECHNICAL ASSISTANCE TO INSTITUTIONS OF HIGHER EDUCATION-CommentsClose CommentsPermalink





‘(A) PROVISION OF ASSISTANCE- The Secretary shall provide institutions of higher education participating, or seeking to participate, in the loan programs under this part with technical assistance in establishing and administering such programs, including assistance for an institution of higher education during such institution’s transition into such programs. Such assistance may include technical support, training for personnel, customized assistance to individual institutions of higher education, development of informational materials, and other services the Secretary determines to be appropriate.CommentsClose CommentsPermalink





‘(B) FUNDS- There are--CommentsClose CommentsPermalink





‘(i) authorized to be appropriated, and there are appropriated, to carry out this paragraph (in addition to any other amounts appropriated to carry out this subparagraph and out of any money in the Treasury not otherwise appropriated), $50,000,000 for fiscal year 2010; andCommentsClose CommentsPermalink





‘(ii) authorized to be appropriated such sums as may be necessary to carry out this paragraph for fiscal years 2011 through 2014.’.CommentsClose CommentsPermalink

SEC. 217. OUTREACH EFFORTS.

(a) Outreach Activities Required- The Secretary of Education shall conduct outreach activities in accordance with this section to inform and educate students and their families about the transition to Federal Direct lending under the amendments made by this title to title IV of the Higher Education Act of 1965.CommentsClose CommentsPermalink





(b) Required Components of Outreach- The Secretary shall provide for the broad dissemination of information on such amendments and shall--CommentsClose CommentsPermalink





(1) operate and maintain an Internet website through which individuals may obtain information on changes made to the Federal Family Education Loan programs and the Federal Direct Loan programs;CommentsClose CommentsPermalink





(2) develop and disseminate information to high school seniors and their parents concerning student loans and student aid;CommentsClose CommentsPermalink





(3) provide assistance to institutions of higher education to educate students on the repayment of Federal Direct loans; andCommentsClose CommentsPermalink





(4) ensure that all outreach efforts are developed using plain language and are culturally- and language-appropriate.CommentsClose CommentsPermalink





(c) Use of Other Entities- In carrying out this subsection, the Secretary may work with other appropriate entities to facilitate the dissemination of information under this section and to provide assistance as described in this section.CommentsClose CommentsPermalink

Subtitle B--Perkins Loan ReformCommentsClose CommentsPermalink

SEC. 221. FEDERAL DIRECT PERKINS LOANS TERMS AND CONDITIONS.

Part D of title IV (20 U.S.C. 1087a et seq.) is amended by inserting after section 455 the following new section:CommentsClose CommentsPermalink

‘SEC. 455A. FEDERAL DIRECT PERKINS LOANS.

‘(a) Designation of Loans- Loans made to borrowers under this section shall be known as ‘Federal Direct Perkins Loans’.CommentsClose CommentsPermalink





‘(b) In General- It is the purpose of this section to authorize loans to be awarded by institutions of higher education through agreements established under section 463(f). Unless otherwise specified in this section, all terms and conditions and other requirements applicable to Federal Direct Unsubsidized Stafford loans established under section 455(a)(2)(D) shall apply to loans made pursuant to this section.CommentsClose CommentsPermalink





‘(c) Eligible Borrowers- Any student meeting the requirements for student eligibility under section 464(b) (including graduate and professional students as defined in regulations promulgated by the Secretary) shall be eligible to borrow a Federal Direct Perkins Loan, provided the student attends an eligible institution with an agreement with the Secretary under section 463(f), and the institution uses its authority under that agreement to award the student a loan.CommentsClose CommentsPermalink





‘(d) Loan Limits- The annual and aggregate limits for loans under this section shall be the same as those established under section 464, and aggregate limits shall include loans made by institutions under agreements under section 463(a).CommentsClose CommentsPermalink





‘(e) Applicable Rates of Interest- Loans made pursuant to this section shall bear interest, on the unpaid balance of the loan, at the rate of 5 percent per year.’.CommentsClose CommentsPermalink

SEC. 222. AUTHORIZATION OF APPROPRIATIONS.

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





(1) in subsection (a), by inserting ‘, before July 1, 2010,’ after ‘The Secretary shall’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) in paragraph (1)--CommentsClose CommentsPermalink





(i) by striking ‘(1) For the purpose’ and inserting ‘For the purpose’; andCommentsClose CommentsPermalink





(ii) by striking ‘and for each of the five succeeding fiscal years’; andCommentsClose CommentsPermalink





(B) by striking paragraph (2); andCommentsClose CommentsPermalink





(3) by striking subsection (c).CommentsClose CommentsPermalink

SEC. 223. ALLOCATION OF FUNDS.

Section 462 (20 U.S.C. 1087bb) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)(1), by striking ‘From’ and inserting ‘For any fiscal year before fiscal year 2010, from’; andCommentsClose CommentsPermalink





(2) in subsection (i)(1), by striking ‘for any fiscal year,’ and inserting ‘for any fiscal year before fiscal year 2010,’.CommentsClose CommentsPermalink

SEC. 224. FEDERAL DIRECT PERKINS LOAN ALLOCATION.

Part E of title IV is further amended by inserting after section 462 (20 U.S.C. 1087bb) the following:CommentsClose CommentsPermalink

‘SEC. 462A. FEDERAL DIRECT PERKINS LOAN ALLOCATION.

‘(a) Purposes- The purposes of this section are--CommentsClose CommentsPermalink





‘(1) to allocate, among eligible and participating institutions (as such terms are defined in this section), the authority to make Federal Direct Perkins Loans under section 455A with a portion of the annual loan authority described in subsection (b); andCommentsClose CommentsPermalink





‘(2) to make funds available, in accordance with section 452, to each participating institution from a portion of the annual loan authority described in subsection (b), in an amount not to exceed the sum of an institution’s allocation of funds under subparagraphs (A), (B), and (C) of subsection (b)(1) to enable each such institution to make Federal Direct Perkins Loans to eligible students at the institution.CommentsClose CommentsPermalink





‘(b) Available Direct Perkins Annual Loan Authority-CommentsClose CommentsPermalink





‘(1) AVAILABILITY AND ALLOCATIONS- There are hereby made available, from funds made available for loans made under part D, not to exceed $6,000,000,000 of annual loan authority for award year 2010-2011 and each succeeding award year, to be allocated as follows (except as provided in paragraphs (3) and (4)):CommentsClose CommentsPermalink





‘(A) The Secretary shall allocate not more than 1/2 of such funds for each award year by allocating to each participating institution an amount equal to the adjusted self-help need amount of the institution, as determined in accordance with subsection (c) for such award year.CommentsClose CommentsPermalink





‘(B) The Secretary shall allocate not more than 1/4 of such funds for each award year by allocating to each participating institution an amount equal to the low tuition incentive amount of the institution, as determined in accordance with subsection (d).CommentsClose CommentsPermalink





‘(C) The Secretary shall allocate not more than 1/4 of such funds for each award year by allocating to each participating institution an amount which bears the same ratio to the funds allocated under this subparagraph as the ratio determined in accordance with subsection (e) for the calculation of the Federal Pell Grant and degree recipient amount of the institution.CommentsClose CommentsPermalink





‘(2) NO FUNDS TO NON-PARTICIPATING INSTITUTIONS- The Secretary shall not make funds available under this subsection to any eligible institution that is not a participating institution. The adjusted self-help need amount (determined in accordance with subsection (c)) of an eligible institution that is not a participating institution shall not be made available to any other institution.CommentsClose CommentsPermalink





‘(3) REQUIRED MINIMUM AMOUNT- Notwithstanding paragraph (1), in no case shall the sum of a participating institution’s allocation of loan authority computed under subsections (c), (d), and (e) be less than the average of the institution’s total principal amount of loans made under this part for each of the academic years 2003-2004 through 2007-2008.CommentsClose CommentsPermalink





‘(4) ADDITIONAL ADJUSTMENTS- If the Secretary determines that the sum of a participating institution’s allocation of loan authority under subsections (c), (d), and (e) is below the minimum amount required under paragraph (3), the Secretary shall--CommentsClose CommentsPermalink





‘(A) for each institution for which the minimum amount under paragraph (3) is not satisfied, increase the amount of such sum to the amount of the required minimum under such paragraph; andCommentsClose CommentsPermalink





‘(B) ratably reduce the amount of the sum of such loan authority of all participating institutions not described in subparagraph (A).CommentsClose CommentsPermalink





‘(c) Adjusted Self-help Need Amount- For the purposes of subsection (b)(1)(A), the Secretary shall calculate the adjusted self-help need amount of each eligible institution for an award year as follows:CommentsClose CommentsPermalink





‘(1) USE OF BASE SELF-HELP NEED AMOUNTS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as provided in paragraphs (2), (3), and (4), the adjusted self-help need amount of each eligible institution shall be the institution’s base self-help need amount, which is the sum of--CommentsClose CommentsPermalink





‘(i) the self-help need of the institution’s eligible undergraduate students for such award year; andCommentsClose CommentsPermalink





‘(ii) the self-help need of the institution’s eligible graduate and professional students for such award year.CommentsClose CommentsPermalink





‘(B) UNDERGRADUATE STUDENT SELF-HELP NEED- To determine the self-help need of an institution’s eligible undergraduate students, the Secretary shall determine the sum of each eligible undergraduate student’s average cost of attendance for the second preceding award year less each such student’s expected family contribution (computed in accordance with part F) for the second preceding award year, except that, for each such eligible undergraduate student, the amount computed by such subtraction shall not be less than zero or more than the lesser of--CommentsClose CommentsPermalink





‘(i) 25 percent of the average cost of attendance with respect to such eligible student; orCommentsClose CommentsPermalink





‘(ii) $5,500.CommentsClose CommentsPermalink





‘(C) GRADUATE AND PROFESSIONAL STUDENT SELF-HELP NEED- To determine the self-help need of an institution’s eligible graduate and professional students, the Secretary shall determine the sum of each eligible graduate and professional student’s average cost of attendance for the second preceding award year less each such student’s expected family contribution (computed in accordance with part F) for such second preceding award year, except that, for each such eligible graduate and professional student, the amount computed by such subtraction shall not be less than zero or more than $8,000.CommentsClose CommentsPermalink





‘(2) RATABLE REDUCTION ADJUSTMENTS- If the sum of the base self-help need amounts of all eligible institutions for an award year as determined under paragraph (1) exceeds 1/2 of the annual loan authority under subsection (b) for such award year, the Secretary shall ratably reduce the base self-help need amounts of all eligible institutions until the sum of such amounts is equal to the amount that is 1/2 of the annual loan authority under subsection (b).CommentsClose CommentsPermalink





‘(d) Low Tuition Incentive Amount-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of subsection (b)(1)(B), the Secretary shall determine the low tuition incentive amount for each participating institution for each award year, by calculating for each such institution the sum of--CommentsClose CommentsPermalink





‘(A) the total amount, if any (but not less than zero), by which--CommentsClose CommentsPermalink





‘(i) the average tuition and required fees for the institution’s sector for the second preceding award year; exceedsCommentsClose CommentsPermalink





‘(ii) the tuition and required fees for the second preceding award year for each undergraduate and graduate student attending the institution who had financial need (as determined under part F); plusCommentsClose CommentsPermalink





‘(B) the total amount, if any (but not less than zero), by which--CommentsClose CommentsPermalink





‘(i) the total amount for the second preceding award year of non-Federal grant aid provided to meet the financial need of all undergraduate students attending the institution (as determined without regard to financial aid not received under this title); exceedsCommentsClose CommentsPermalink





‘(ii) the total amount for the second preceding award year, if any, by which--CommentsClose CommentsPermalink





‘(I) the tuition and required fees of each such student with such financial need; exceedsCommentsClose CommentsPermalink





‘(II) the average tuition and required fees for the institution’s sector.CommentsClose CommentsPermalink





‘(2) RATABLE REDUCTION- If the sum of the low tuition incentive amounts of all participating institutions for an award year as determined under paragraph (1) exceeds 1/4 of the annual loan authority under subsection (b) for such award year, the Secretary shall ratably reduce the low tuition incentive amounts of all participating institutions until the sum of such amounts is equal to the amount that is 1/4 of the annual loan authority under subsection (b).CommentsClose CommentsPermalink





‘(e) Federal Pell Grant and Degree Recipient Amount- For purposes of subsection (b)(1)(C), the Secretary shall determine the Federal Pell Grant and degree recipient amount for each participating institution for each award year, by calculating for each such institution the ratio of--CommentsClose CommentsPermalink





‘(1) the number of students who, during the most recent year for which data are available, obtained an associate’s degree or other postsecondary degree from such participating institution and, prior to obtaining such degree, received a Federal Pell Grant for attendance at any institution of higher education; toCommentsClose CommentsPermalink





‘(2) the sum of the number of students who, during the most recent year for which data are available, obtained an associate’s degree or other postsecondary degree from each participating institution and, prior to obtaining such degree, received a Federal Pell Grant for attendance at any institution of higher education.CommentsClose CommentsPermalink





‘(f) Definitions- As used in this section:CommentsClose CommentsPermalink





‘(1) ANNUAL LOAN AUTHORITY- The term ‘annual loan authority’ means the total original principal amount of loans that may be allocated and made available for an award year to make Federal Direct Perkins Loans under section 455A.CommentsClose CommentsPermalink





‘(2) AVERAGE COST OF ATTENDANCE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘average cost of attendance’ means the average of the attendance costs for undergraduate students and for graduate and professional students, respectively, for the second preceding award year which shall include--CommentsClose CommentsPermalink





‘(i) tuition and required fees determined in accordance with subparagraph (B);CommentsClose CommentsPermalink





‘(ii) standard living expenses determined in accordance with subparagraph (C); andCommentsClose CommentsPermalink





‘(iii) books and supplies determined in accordance with subparagraph (D).CommentsClose CommentsPermalink





‘(B) TUITION AND REQUIRED FEES- The average undergraduate and graduate and professional tuition and required fees described in subparagraph (A)(i) shall be computed on the basis of information reported by the institution to the Secretary, which shall include--CommentsClose CommentsPermalink





‘(i) total revenue received by the institution from undergraduate and graduate and professional students, respectively, for tuition and required fees for the second preceding award year; andCommentsClose CommentsPermalink





‘(ii) the institution’s full-time equivalent enrollment of undergraduate and graduate and professional students, respectively, for such second preceding award year.CommentsClose CommentsPermalink





‘(C) STANDARD LIVING EXPENSES- The standard living expense described in subparagraph (A)(ii) is equal to the allowance, determined by an institution, for room and board costs incurred by a student, as computed in accordance with part F for the second preceding award year.CommentsClose CommentsPermalink





‘(D) BOOKS AND SUPPLIES- The allowance for books and supplies described in subparagraph (A)(iii) is equal to the allowance, determined by an institution, for books, supplies, transportation, and miscellaneous personal expenses, including a reasonable allowance for the documented rental or purchase of a personal computer, as computed in accordance with part F for the second preceding award year.CommentsClose CommentsPermalink





‘(3) AVERAGE TUITION AND REQUIRED FEES FOR THE INSTITUTION’S SECTOR- The term ‘average tuition and required fees for the institution’s sector’ shall be determined by the Secretary for each of the categories described in section 132(d).CommentsClose CommentsPermalink





‘(4) ELIGIBLE INSTITUTION- The term ‘eligible institution’ means an institution of higher education that participates in the Federal Direct Stafford Loan Program.CommentsClose CommentsPermalink





‘(5) PARTICIPATING INSTITUTION- The term ‘participating institution’ means an institution of higher education that has an agreement under section 463(f).CommentsClose CommentsPermalink





‘(6) SECTOR- The term ‘sector’ means each of the categories described in section 132(d).’.CommentsClose CommentsPermalink

SEC. 225. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.

(a) Amendments- Section 463 (20 U.S.C. 1087cc) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) in the heading, by inserting ‘for Loans Made Before July 1, 2010’ after ‘Agreements’;CommentsClose CommentsPermalink





(B) in paragraph (3)(A), by inserting ‘before July 1, 2010’ after ‘students’;CommentsClose CommentsPermalink





(C) in paragraph (4), by striking ‘thereon--’ and all that follows and inserting ‘thereon, if the institution has failed to maintain an acceptable collection record with respect to such loan, as determined by the Secretary in accordance with criteria established by regulation, the Secretary may require the institution to assign such note or agreement to the Secretary, without recompense;’; andCommentsClose CommentsPermalink





(D) in paragraph (5), by striking ‘and the Secretary shall apportion’ and all that follows through ‘in accordance with section 462’ and inserting ‘and the Secretary shall return a portion of funds from loan repayments to the institution as specified in section 466(b)’;CommentsClose CommentsPermalink





(2) by amending subsection (b) to read as follows:CommentsClose CommentsPermalink





‘(b) Administrative Expenses- An institution that has entered into an agreement under subsection (a) shall be entitled, for each fiscal year during which it services student loans from a student loan fund established under such agreement, to a payment in lieu of reimbursement for its expenses in servicing student loans made before July 1, 2010. Such payment shall be equal to 0.50 percent of the outstanding principal and interest balance of such loans being serviced by the institution as of September 30 of each fiscal year.’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(f) Contents of Agreements for Loans Made on or After July 1, 2010- An agreement with any institution of higher education that elects to participate in the Federal Direct Perkins Loan program under section 455A shall provide--CommentsClose CommentsPermalink





‘(1) for the establishment and maintenance of a Direct Perkins Loan program at the institution under which the institution shall use loan authority allocated under section 462A to make loans to eligible students attending the institution;CommentsClose CommentsPermalink





‘(2) that the institution, unless otherwise specified in this subsection, shall operate the program consistent with the requirements of agreements established under section 454;CommentsClose CommentsPermalink





‘(3) that the institution will pay matching funds, quarterly, in an amount agreed to by the institution and the Secretary, to an escrow account approved by the Secretary, for the purpose of providing loan benefits to borrowers;CommentsClose CommentsPermalink





‘(4) that if the institution fails to meet the requirements of paragraph (3), the Secretary shall suspend or terminate the institution’s eligibility to make Federal Direct Perkins Loans under section 455A until such time as the Secretary determines, in accordance with section 498, that the institution has met the requirements of such paragraph; andCommentsClose CommentsPermalink





‘(5) that if the institution ceases to be an eligible institution within the meaning of section 435(a) by reason of having a cohort default rate that exceeds the threshold percentage specified in paragraph (2) of such section, the Secretary shall suspend or terminate the institution’s eligibility to make Federal Direct Perkins Loans under section 455A unless and until the institution would qualify for a resumption of eligible institution status under such section.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by paragraph (2) of subsection (a) shall take effect on October 1, 2010.CommentsClose CommentsPermalink

SEC. 226. STUDENT LOAN INFORMATION BY ELIGIBLE INSTITUTIONS.

Section 463A (20 U.S.C. 1087cc-1) is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by striking ‘Each institution’ and inserting ‘For loans made before July 1, 2010, each institution’; andCommentsClose CommentsPermalink





(2) in subsection (b), by striking ‘Each institution’ and inserting ‘For loans made before July 1, 2010, each institution’.CommentsClose CommentsPermalink

SEC. 227. TERMS OF LOANS.

Section 464 (20 U.S.C. 1087dd) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)(1), by striking ‘section 463’ and inserting ‘section 463(a)’;CommentsClose CommentsPermalink





(2) in subsection (b)(1), by inserting ‘made before July 1, 2010,’ after ‘A loan’;CommentsClose CommentsPermalink





(3) in subsection (c)--CommentsClose CommentsPermalink





(A) in paragraph (1), by inserting ‘made before July 1, 2010,’ after ‘a loan’;CommentsClose CommentsPermalink





(B) in paragraph (2)--CommentsClose CommentsPermalink





(i) in subparagraph (A), by inserting ‘made before July 1, 2010,’ after ‘any loan’; andCommentsClose CommentsPermalink





(ii) in subparagraph (B), by inserting ‘made before July 1, 2010,’ after ‘any loan’;CommentsClose CommentsPermalink





(C) in paragraph (3)(B), by inserting ‘for a loan made before July 1, 2010,’ after ‘during the repayment period’;CommentsClose CommentsPermalink





(D) in paragraph (4), by inserting ‘before July 1, 2010,’ after ‘for a loan made’;CommentsClose CommentsPermalink





(E) in paragraph (5), by striking ‘The institution’ and inserting ‘For loans made before July 1, 2010, the institution’; andCommentsClose CommentsPermalink





(F) in paragraph (6), by inserting ‘made before July 1, 2010,’ after ‘of loans’;CommentsClose CommentsPermalink





(4) in subsection (d), by inserting ‘made before July 1, 2010,’ before ‘from the student loan fund’;CommentsClose CommentsPermalink





(5) in subsection (e), by inserting ‘with respect to loans made before July 1, 2010, and’ before ‘as documented in accordance with paragraph (2),’;CommentsClose CommentsPermalink





(6) by repealing subsection (f);CommentsClose CommentsPermalink





(7) in subsection (g)(1), by inserting ‘and before July 1, 2010,’ after ‘January 1, 1986,’;CommentsClose CommentsPermalink





(8) in subsection (h)--CommentsClose CommentsPermalink





(A) in paragraph (1)(A) by inserting ‘before July 1, 2010,’ after ‘made under this part’; andCommentsClose CommentsPermalink





(B) in paragraph (2), by inserting ‘before July 1, 2010,’ after ‘under this part’; andCommentsClose CommentsPermalink





(9) in subsection (j)(1), by inserting ‘before July 1, 2010,’ after ‘under this part’.CommentsClose CommentsPermalink

SEC. 228. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.

(a) Section 465 (20 U.S.C. 1087ee) is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by inserting ‘and before July 1, 2010,’ after ‘June 30, 1972,’; andCommentsClose CommentsPermalink





(2) by amending subsection (b) to read as follows:CommentsClose CommentsPermalink





‘(b) Reimbursement for Cancellations-CommentsClose CommentsPermalink





‘(1) ASSIGNED LOANS- In the case of loans made under this part before July 1, 2010, and that are assigned to the Secretary, the Secretary shall, from amounts repaid each quarter on assigned Perkins Loans made before July 1, 2010, pay to each institution for each quarter an amount equal to--CommentsClose CommentsPermalink





‘(A) the aggregate of the amounts of loans from its student loan fund that are canceled pursuant to this section for such quarter, minusCommentsClose CommentsPermalink





‘(B) an amount equal to the aggregate of the amounts of any such loans so canceled that were made from Federal capital contributions to its student loan fund.CommentsClose CommentsPermalink





‘(2) RETAINED LOANS- In the case of loans made under this part before July 1, 2010, and that are retained by the institution for servicing, the institution shall deduct from loan repayments owed to the Secretary under section 466, an amount equal to--CommentsClose CommentsPermalink





‘(A) the aggregate of the amounts of loans from its student loan fund that are canceled pursuant to this section for such quarter, minusCommentsClose CommentsPermalink





‘(B) an amount equal to the aggregate of the amounts of any such loans so canceled that were made from Federal capital contributions to its student loan fund.’.CommentsClose CommentsPermalink





(b) Section 466 (20 U.S.C. 1087ff) is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.

‘(a) Capital Distribution- Beginning July 1, 2010, there shall be a capital distribution of the balance of the student loan fund established under this part by each institution of higher education as follows:CommentsClose CommentsPermalink





‘(1) For the quarter beginning July 1, 2010, the Secretary shall first be paid, no later than September 30, 2010, an amount that bears the same ratio to the cash balance in such fund at the close of June 30, 2010, as the total amount of the Federal capital contributions to such fund by the Secretary under this part bears to--CommentsClose CommentsPermalink





‘(A) the sum of such Federal contributions and the institution’s capital contributions to such fund, lessCommentsClose CommentsPermalink





‘(B) an amount equal to--CommentsClose CommentsPermalink





‘(i) the institution’s outstanding administrative costs as calculated under section 463(b),CommentsClose CommentsPermalink





‘(ii) outstanding charges assessed under section 464(c)(1)(H), andCommentsClose CommentsPermalink





‘(iii) outstanding loan cancellation costs incurred under section 465.CommentsClose CommentsPermalink





‘(2) At the end of each quarter subsequent to the quarter ending September 30, 2010, the Secretary shall first be paid an amount that bears the same ratio to the cash balance in such fund at the close of the preceding quarter, as the total amount of the Federal capital contributions to such fund by the Secretary under this part bears to--CommentsClose CommentsPermalink





‘(A) the sum of such Federal contributions and the institution’s capital contributions to such fund, lessCommentsClose CommentsPermalink





‘(B) an amount equal to--CommentsClose CommentsPermalink





‘(i) the institution’s administrative costs incurred for that quarter as calculated under section 463(b),CommentsClose CommentsPermalink





‘(ii) charges assessed for that quarter under section 464(c)(1)(H), andCommentsClose CommentsPermalink





‘(iii) loan cancellation costs incurred for that quarter under section 465.CommentsClose CommentsPermalink





‘(3)(A) The Secretary shall calculate the amounts due to the Secretary under paragraph (1) (adjusted in accordance with subparagraph (B), as appropriate) and paragraph (2) and shall promptly inform the institution of such calculated amounts.CommentsClose CommentsPermalink





‘(B) In the event that, prior to the date of enactment of the Student Aid and Fiscal Responsibility Act of 2009, an institution made a short-term, interest-free loan to the institution’s student loan fund established under this part in anticipation of collections or receipt of Federal capital contributions, and the institution demonstrates to the Secretary, on or before June 30, 2010, that such loan will still be outstanding after June 30, 2010, the Secretary shall subtract the amount of such outstanding loan from the cash balance of the institution’s student loan fund that is used to calculate the amount due to the Secretary under paragraph (1). An adjustment of an amount due to the Secretary under this subparagraph shall be made by the Secretary on a case-by-case basis.CommentsClose CommentsPermalink





‘(4) Any remaining balance at the end of a quarter after a payment under paragraph (1) or (2) shall be retained by the institution for use at its discretion. Any balance so retained shall be withdrawn from the student loan fund and shall not be counted in calculating amounts owed to the Secretary for subsequent quarters.CommentsClose CommentsPermalink





‘(5) Each institution shall make the quarterly payments to the Secretary described in paragraph (2) until all outstanding Federal Perkins Loans at that institution have been assigned to the Secretary and there are no funds remaining in the institution’s student loan fund.CommentsClose CommentsPermalink





‘(6) In the event that the institution’s administrative costs, charges, and cancellation costs described in paragraph (2) for a quarter exceed the amount owed to the Secretary under paragraphs (1) and (2) for that quarter, no payment shall be due to the Secretary from the institution for that quarter and the Secretary shall pay the institution, from funds realized from the collection of assigned Federal Perkins Loans made before July 1, 2010, an amount that, when combined with the amount retained by the institution under paragraphs (1) and (2), equals the full amount of such administrative costs, charges, and cancellation costs.CommentsClose CommentsPermalink





‘(b) Assignment of Outstanding Loans- Beginning July 1, 2010, an institution of higher education may assign all outstanding loans made under this part before July 1, 2010, to the Secretary, consistent with the requirements of section 463(a)(5). In collecting loans so assigned, the Secretary shall pay an institution an amount that constitutes the same fraction of such collections as the fraction of the cash balance that the institution retains under subsection (a)(2), but determining such fraction without regard to subparagraph (B)(i) of such subsection.’.CommentsClose CommentsPermalink

SEC. 229. IMPLEMENTATION OF NON-TITLE IV REVENUE REQUIREMENT.

Section 487(d) (20 U.S.C. 1094(d)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1)(E), by striking ‘July 1, 2011’ and inserting ‘July 1, 2012’;CommentsClose CommentsPermalink





(2) in paragraph (1)(F)--CommentsClose CommentsPermalink





(A) by redesignating clauses (iii), (iv), and (v) as clauses (iv), (v), and (vi), respectively; andCommentsClose CommentsPermalink





(B) by inserting after clause (ii) the following new clause:CommentsClose CommentsPermalink





‘(iii) for the period beginning July 1, 2010, and ending July 1, 2012, the amount of funds the institution received from loans disbursed under section 455A;’; andCommentsClose CommentsPermalink





(3) in paragraph (2), by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) EXCEPTION- Notwithstanding subparagraphs (A) and (B), an institution that fails to meet the requirements of subsection (a)(24) for two consecutive institutional fiscal years, and the second such institutional fiscal year ends after July 1, 2008, and before July 1, 2011, shall not be determined ineligible in accordance with subparagraph (A) unless the institution fails to meet the requirements of subsection (a)(24) for a third consecutive institutional fiscal year.’.CommentsClose CommentsPermalink

SEC. 230. ADMINISTRATIVE EXPENSES.

Section 489(a) (20 U.S.C. 1096(a)) is amended--CommentsClose CommentsPermalink





(1) in the second sentence, by striking ‘or under part E of this title’; andCommentsClose CommentsPermalink





(2) in the third sentence--CommentsClose CommentsPermalink





(A) by inserting ‘and’ after ‘subpart 3 of part A,’; andCommentsClose CommentsPermalink





(B) by striking ‘compensation of students,’ and all that follows through the period and inserting ‘compensation of students.’.CommentsClose CommentsPermalink

TITLE III--MODERNIZATION, RENOVATION, AND REPAIRCommentsClose CommentsPermalink

Subtitle A--Elementary and Secondary EducationCommentsClose CommentsPermalink

SEC. 301. DEFINITIONS.

In this subtitle:CommentsClose CommentsPermalink





(1) The term ‘Bureau-funded school’ has the meaning given such term in section 1141 of the Education Amendments of 1978 (25 U.S.C. 2021).CommentsClose CommentsPermalink





(2) The term ‘charter school’ has the meaning given such term in section 5210 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7221i).CommentsClose CommentsPermalink





(3) The term ‘CHPS Criteria’ means the green building rating program developed by the Collaborative for High Performance Schools.CommentsClose CommentsPermalink





(4) The term ‘Energy Star’ means the Energy Star program of the United States Department of Energy and the United States Environmental Protection Agency.CommentsClose CommentsPermalink





(5) The term ‘Green Globes’ means the Green Building Initiative environmental design and rating system referred to as Green Globes.CommentsClose CommentsPermalink





(6) The term ‘LEED Green Building Rating System’ means the United States Green Building Council Leadership in Energy and Environmental Design green building rating standard referred to as LEED Green Building Rating System.CommentsClose CommentsPermalink





(7) The term ‘local educational agency’--CommentsClose CommentsPermalink





(A) has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801);CommentsClose CommentsPermalink





(B) includes any public charter school that constitutes a local educational agency under State law; andCommentsClose CommentsPermalink





(C) includes the Recovery School District of Louisiana.CommentsClose CommentsPermalink





(8) The term ‘outlying area’--CommentsClose CommentsPermalink





(A) means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands; andCommentsClose CommentsPermalink





(B) includes the Republic of Palau.CommentsClose CommentsPermalink





(9) The term ‘public school facilities’ means existing public elementary or secondary school facilities, including public charter school facilities and other existing facilities planned for adaptive reuse as public charter school facilities.CommentsClose CommentsPermalink





(10) The term ‘Secretary’ means the Secretary of Education.CommentsClose CommentsPermalink





(11) The term ‘State’ means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.CommentsClose CommentsPermalink

CHAPTER 1--GRANTS FOR MODERNIZATION, RENOVATION, OR REPAIR OF PUBLIC SCHOOL FACILITIES

SEC. 311. PURPOSE.

Grants under this chapter shall be for the purpose of modernizing, renovating, or repairing public school facilities (including early learning facilities, as appropriate), based on the need of the facilities for such improvements, to ensure that public school facilities are safe, healthy, high-performing, and technologically up-to-date.CommentsClose CommentsPermalink

SEC. 312. ALLOCATION OF FUNDS.

(a) Reservation-CommentsClose CommentsPermalink





(1) IN GENERAL- From the amount appropriated to carry out this chapter for each fiscal year pursuant to section 345(a), the Secretary shall reserve 2 percent of such amount, consistent with the purpose described in section 311--CommentsClose CommentsPermalink





(A) to provide assistance to the outlying areas; andCommentsClose CommentsPermalink





(B) for payments to the Secretary of the Interior to provide assistance to Bureau-funded schools.CommentsClose CommentsPermalink





(2) USE OF RESERVED FUNDS- In each fiscal year, the amount reserved under paragraph (1) shall be divided between the uses described in subparagraphs (A) and (B) of such paragraph in the same proportion as the amount reserved under section 1121(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331(a)) is divided between the uses described in paragraphs (1) and (2) of such section 1121(a) in such fiscal year.CommentsClose CommentsPermalink





(3) DISTRESSED AREAS AND NATURAL DISASTERS- From the amount appropriated to carry out this chapter for each fiscal year pursuant to section 345(a), the Secretary shall reserve 5 percent of such amount for grants to--CommentsClose CommentsPermalink





(A) local educational agencies serving geographic areas with significant economic distress, to be used consistent with the purpose described in section 311 and the allowable uses of funds described in section 313;CommentsClose CommentsPermalink





(B) local educational agencies serving geographic areas recovering from a natural disaster, to be used consistent with the purpose described in section 321 and the allowable uses of funds described in section 323; andCommentsClose CommentsPermalink





(C) local educational agencies serving geographic areas that contain a military installation selected for closure under the base closure and realignment process pursuant to the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).CommentsClose CommentsPermalink





(b) Allocation to States-CommentsClose CommentsPermalink





(1) STATE-BY-STATE ALLOCATION- Of the amount appropriated to carry out this chapter for each fiscal year pursuant to section 345(a), and not reserved under subsection (a), each State shall be allocated an amount in proportion to the amount received by all local educational agencies in the State under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for the previous fiscal year relative to the total amount received by all local educational agencies in every State under such part for such fiscal year.CommentsClose CommentsPermalink





(2) STATE ADMINISTRATION- A State may reserve up to 1 percent of its allocation under paragraph (1) to carry out its responsibilities under this chapter, which include--CommentsClose CommentsPermalink





(A) providing technical assistance to local educational agencies;CommentsClose CommentsPermalink





(B) developing an online, publicly searchable database that includes an inventory of public school facilities in the State, including for each such facility, its design, condition, modernization, renovation and repair needs, utilization, energy use, and carbon footprint; andCommentsClose CommentsPermalink





(C) creating voluntary guidelines for high-performing school buildings, including guidelines concerning the following:CommentsClose CommentsPermalink





(i) Site location, storm water management, outdoor surfaces, outdoor lighting, and transportation, including public transit and pedestrian and bicycle accessability.CommentsClose CommentsPermalink





(ii) Outdoor water systems, landscaping to minimize water use, including elimination of irrigation systems for landscaping, and indoor water use reduction.CommentsClose CommentsPermalink





(iii) Energy efficiency (including minimum and superior standards, such as for heating, ventilation, and air conditioning systems), use of alternative energy sources, commissioning, and training.CommentsClose CommentsPermalink





(iv) Use of durable, sustainable materials, including life-cycle cost effectiveness, and waste reduction.CommentsClose CommentsPermalink





(v) Indoor environmental quality, such as day lighting in classrooms, lighting quality, indoor air quality (including with reference to reducing the incidence and effects of asthma and other respiratory illnesses), acoustics, and thermal comfort.CommentsClose CommentsPermalink





(vi) Operations and management, such as use of energy-efficient equipment, indoor environmental management plan, maintenance plan, and pest management.CommentsClose CommentsPermalink





(3) GRANTS TO LOCAL EDUCATIONAL AGENCIES- From the amount allocated to a State under paragraph (1), each eligible local educational agency in the State shall receive an amount in proportion to the amount received by such local educational agency under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for the previous fiscal year relative to the total amount received by all local educational agencies in the State under such part for such fiscal year, except that no local educational agency that received funds under such part for such fiscal year shall receive a grant of less than $5,000 in any fiscal year under this chapter.CommentsClose CommentsPermalink





(4) SPECIAL RULE- Section 1122(c)(3) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6332(c)(3)) shall not apply to paragraph (1) or (3).CommentsClose CommentsPermalink





(c) Special Rules-CommentsClose CommentsPermalink





(1) DISTRIBUTIONS BY SECRETARY- The Secretary shall make and distribute the reservations and allocations described in subsections (a) and (b) not later than 120 days after an appropriation of funds for this chapter is made.CommentsClose CommentsPermalink





(2) DISTRIBUTIONS BY STATES- A State shall make and distribute the allocations described in subsection (b)(3) within 90 days of receiving such funds from the Secretary.CommentsClose CommentsPermalink

SEC. 313. ALLOWABLE USES OF FUNDS.

A local educational agency receiving a grant under this chapter shall use the grant for modernization, renovation, or repair of public school facilities (including early learning facilities, as appropriate), including--CommentsClose CommentsPermalink





(1) repair, replacement, or installation of roofs, including extensive, intensive or semi-intensive green roofs, electrical wiring, water supply and plumbing systems, sewage systems, storm water runoff systems, lighting systems, building envelope, windows, ceilings, flooring, or doors, including security doors;CommentsClose CommentsPermalink





(2) repair, replacement, or installation of heating, ventilation, or air conditioning systems, including insulation, and conducting indoor air quality assessments;CommentsClose CommentsPermalink





(3) compliance with fire, health, seismic, and safety codes, including professional installation of fire and life safety alarms, and modernizations, renovations, and repairs that ensure that schools are prepared for emergencies, such as improving building infrastructure to accommodate security measures and installing or upgrading technology to ensure that schools are able to respond to emergencies such as acts of terrorism, campus violence, and natural disasters;CommentsClose CommentsPermalink





(4) retrofitting necessary to increase the energy efficiency and water efficiency of public school facilities;CommentsClose CommentsPermalink





(5) modifications necessary to make facilities accessible in compliance with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and section 504 of the Rehabilitation Act of 1973 (